NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION

EVALUATION COVERS THE PERIOD 1/76 TO 12/77 AND IS BASED ON A REVIEW OF PROJECT REPORTS AND INTERVIEWS WITH NRECA OFFICIALS. THE PROJECT HAS BEEN SUCCESSFUL. DURING THE EVALUATION PERIOD, NRECA-ASSISTED LOAN APPLICATIONS TO AID/W FOR RE PROJECTS TOTALLED $160 MILLION. RE COOPERATIVES SERVING SEVEN MILLION PEOPLE ARE NOW OPERATIVE IN 11 LDC"S, AND 10 MORE LDC"S ARE BEING CONSIDERED FOR RE PROJECTS. ON THE OTHER HAND, NEARLY 100 LDC"S (COMPRISING 95% OF RURAL PEOPLE) STILL LACK ELECTRIC SERVICE, IN MANY CASES BECAUSE OF A LACK OF ADEQUATE SPONSORING INSTITUTIONS. NRECA GREATLY INCREASED ITS EVALUATION EFFORTS AND INITIATED WARMLY RECIEVED EVALUATION PROJECTS IN THREE LDC"S. NRECA ALSO PROVIDED IN-COUNTRY AND PARTICIPANT TRAINING AIDS TO IMPROVE ASSISTANCE IN LATIN AMERICAN COUNTRIES. MAJOR FACTORS LIMITING PROJECT SUCCESS WERE THE DIFFICULTIES IN CONVINCING LDC"S TO USE RE COOPERATIVES AND IN SECURING THE LARGE SUMS OF MONEY NEEDED TO DEVELOP RE PROJECTS, AND FOR NRECA TO CONDUCT IN-DEPTH STUDIES AND TO PROVIDE THE TECHNICAL ASSISTANCE INCREASINGLY SOUGHT BY LDC"S. MAJOR OPPOSITION TO RE PROJECTS DEVELOPED WITHIN THE SENATE SUBCOMMITTEE PARTLY DUE TO DIFFICULTY NRECA HAD IN ESTABLISHING BASELINE DATA (TO SUPPORT RE LOAN APPLICATIONS) TO DEMONSTRATE THE BENEFITS OF PROPOSED PROJECTS TO THE POOR. IN ACCORDANCE WITH THE RECOMMENDATIONS OF A PREVIOUS EVALUATION, THE TASK ORDER AND GRANT WILL BE COMBINED INTO A SINGLE FUNDING INSTRUMENT IN 1978 AND CRITERIA FOR NRECA"S PRELIMINARY VISITS TO LDC"S WILL BE DEVELOPED. THE PROJECT TAUGHT THE ADVANTAGE OF HAVING CONTRACTORS AND NRECA INVOLVED EARLY IN THE PROJECT PLANNING, AND THE UTILITY OF PROVIDING LONG-TERM FOLLOW-UP TECHNICAL ASSISTANCE TO BORROWERS. SINCE NRECA"S ACTIVITY WILL LIKELY INCREASE IN THE FUTURE, ADDITIONAL PROGRAM FUNDING FOR NRECA SEEMS ADVISABLE. AN ACTION DECISION TOPREPARE A NEW PROJECT PAPER BY 2/78 WAS MADE.