Project assistance completion report, volume I : rural electrification (power distribution program) (391-0473)

WAPDA"s new management structure and realignment of responsibilities, which were developed under the project, have improved its efficiency and scope; 40% of WAPDA"s system expansion has been financed by internal cash generation resulting from increased tariff rates and improved efficiency. The reorganized headquarters of the WAPDA Distribution Wing (DW) and the decentralized field formations -- Area Electricity Board"s (AEB) Circles and Divisions -- have improved accountability through the adoption of new procedures; DW continues to use project-produced operating manuals as well as the computerized system for expansion/rehabilitation planning, billing, stores inventory, purchase order tracking, and load management systems. However, field staff have viewed the reorganization of the DW along functional lines as an infringement on their administrative powers and authority. Distribution training, of only a rudimentary nature prior to the project, has been given new impetus with the addition of a new general training manager, the development of an incentive-based system to attract high-quality training faculty, and the establishment in Islamabad of a modern training academy, which is expected to meet the DW"s future training needs. The Energy Loss Reduction (ELR) program has helped WAPDA to apply improved standards, policies, procedures, and methods applicable to distribution planning, engineering, construction, maintenance, and safety and system operations. Headquarters and all fields are utilizing the simplified computerized work order system, which has greatly expedited the development of work orders. The headquarters and AEB offices were provided with large quantities of surveying and computer equipment, and with training in inspection of maps and installation and utilization of computerized data tapes submitted by the mapping and surveying contractors. Almost all AEBs have reached a uniform understanding of the use of computerized maps, but require expertise to guide them in the task of updating the computerized maps on a periodic basis. The GOP is arranging with the World Bank to complete the surveying and mapping (55% of total kilometers assigned to the project), which should take up to a year to complete. This will impede the continuity of the project. Under the power generation component, a 600 MW combined cycle plant was built, the first such plant in Pakistan; hands-on and classroom training were provided at the site by the contractor (Gibbs and Hill -- G&H); and WAPDA staff were sent to the manufacturer"s facility as well. In addition, spare parts, which were essential for continuous operation, were provided to WAPDA. Other plants have since been constructed, and WAPDA has gained expertise in combined cycle plants and in the use of evaporative coolers. The new plants have contributed about 1000 MW of electricity to the national grid, providing considerable relief from load shedding. The component yielded the following lessons learned. (1) Selection of a good Architect/Engineer is the key factor for successful completion of any construction project. (2) A TA team serves much better under a direct contract with USAID than under a host country contract; G&H faced considerable administrative and logistical problems in supervising construction of a 300 MW plant under a contract with the Pakistani government, in contrast to the smooth execution of the 600 MW plant under a direct contract with USAID. (3) USG regulations sometimes result in losses to the very economy which they are intended to benefit. General Electric submitted a conditional proposal to supply equipment to WAPDA which claimed exemption from FAR clauses, namely audit access by the government, and submission of certified cost and pricing data. Because USAID could not waive these clauses, which are mandated by Federal Procurement regulations, GE withdrew its proposal, and the contract was awarded to Siemens. The following lessons were learned from the project as a whole. (1) The contractors" progress reports, which tend to focus on accomplishments only, should be supplemented with field visits. (2) While implementing a large project such as this, USAID should constantly review whether its own staffing is adequate to manage the project successfully. (3) Before undertaking a program as complex and innovative as the mapping/surveying program, a pilot activity should have been undertaken to reduce risks and delays. (4) Adequate lead time must be allowed for the training of contractor staff before start of actual work on the program. (5) Contracts that are as technically complex as this must always be reviewed by an independent authority, with demonstrated experience in similar work. (6) As far as possible, proven and reliable "off-the-shelf" software and hardware should be used in future projects of this type. (7) A program to guide and train WAPDA operation/maintenance staff is necessary; the operation staff responsible for maintaining the distribution system after its installation by the construction staff lacked the acceptable training levels on systems maintenance and operations. (8) The ELR program quality control, handled by a TA contractor under the project, should be entrusted to an outside agency to improve the quality of works on a sustainable basis.