Project assistance completion report for the energy sector assistance project water component

The project as a whole consisted of two phases -- the first directed at the public, the second at the private sector. The latter phase consisted of an energy credit fund managed by local banks and aimed at improving energy efficiency in private industry. The fund was unsuccessful, however, since the loans carried a substantially lower interest rate than regular commercial loans and thus banks were reluctant to extend them. As a result, less than 10% of credit funds were committed. In 9/86, the project was modified to direct remaining funds toward eight energy-related water supply and sewerage subprojects. This modification of the project was found to be an appropriate change, which provided the benefit of over 23 million gallons of water per day of new capacity or enhanced delivery of existing capacity. The major project lessons concerned the fixed amount reimbursement (FAR) method of financing. The innovations in the FAR method used by USAID/J in this project enabled expeditious and relatively trouble-free implementation of the subprojects. The project serves as an example of possibilities for future use of FAR. The following was accomplished under these subprojects: (1) construction of a half-million gallon reservoir at Pleasant Hill in Eastern St. Thomas; (2) improvements to the Rio Cobre pipeline system to enable pumping from augmentation wells directly into the trunk main; (3) improvement of the Lucea-Negril system in Western Jamaica by installing about 11,000 feet of pipe to connect the Logwood treatment plant to the distribution main at Orange Bay; (4) preliminary engineering, cost, and feasibility studies for expansion of the Logwood treatment plant, the Negril distribution system, and a water loss management program for the Lucea-Negril area; (5) feasibility, design, and cost studies for the Negril and Ocho Rios sewerage systems; (5) preparation of a 10-year plan for the Ocho Rios/St. Ann's Bay water system; and (6) installation of bulk flow meters at 22 locations throughout Jamaica.