Nonconventional energy development project

Audit report covers the period 5/78-5/82 and is based on site visits, document review, and interviews with project personnel. The project is severely behind schedule. Only 5% of the loan funds and 54% of the grant funds have been expended (compared to projected expenditures of 95% and 78%, respectively) and only four of ten planned subprojects have been started by the MOE. Implementation was delayed primarily because several planned subprojects were reassigned to other GOP agencies and because the MOE"s management capabilities have not met expectations. The original implementation plan is no longer realistic. Due to untimely fund disbursements, poor interagency cooperation, and failure to resolve technical problems, only 6 of a planned 26 windmills and only 7 of a planned 12 sets of wind monitoring equipment were installed; 2 of the windmills and one wind monitoring set have not been operating properly. In addition, three project vehicles and a pyronograph have been used for nonproject activities and A.I.D. assistance has not been publicized at subproject sites. USAID/P has liquidated advances to the MOE on the basis of accrued expenditures rather than actual disbursements and has also erred in calculating the amounts to be liquidated. As a result, loan disbursements have been overestimated by $19,781. One of the 16 grant-financed participants owes A.I.D. $15,194.47 because he did not complete his obligation to work for the MOE after receiving U.S. training. In addition, there are $3,157 in questionable costs paid under two technical services contracts and questionable payments to the project coordinator totaling $2,546. It is recommended that USAID/P and the MOE develop a revised implementation plan with consideration given to reducing project scope and de-obligating excess funds. Ten other recommendations aimed at rectifying the management, technical, and accounting problems mentioned above are also made.