Regional industrial energy efficiency project : first evaluation final report

External evaluation covers the period 7/83-ll/84 and is based on document review, site visits, and interviews with A.I.D., project, and private sector personnel. The project will probably achieve only 33-50% of its targets, but is potentially a very significant activity - it is the only truly regional EC project underway, it enjoys active private sector involvement through national associations of industries, it has actually generated revenues through fees for seminars and audits, and its institution-building activities are likely to succeed in all countries except Nicaragua, which no longer participates. The goal to improve balance of payments through reduced oil imports will not be achieved, however, due to changing economic conditions and overoptimistic cost analyses. Regarding services to industry, energy seminars have reached several hundred firms and will exceed targets; only in Panama have these been less than successful. Some 75-85 energy audits (near target) will be completed in 1984; thus far, most are of good quality. Demonstration projects have not yet begun; fewer than planned will be completed, given the greater importance of other activities (training, audits, follow-ups). Only very preliminary work has been done on the 2 pilot projects. Training is far behind, with only one short course in 1983, attended by staff of the implementing Central American Technical and Industrial Research Institute (ICAITI) and by national delegates, and no training in 1984. Performance by ICAITI engineers has been uneven. Promotion, through conferences, publications, etc., has been effective and has reached over 1,000 firms. Less positively, little work has been done to create a regional EC data base, and the financing and policy issues component, implemented by the Secretariat for Central American Economic Integration (SIECA), has completed only one financing study (in draft) and 2 general studies; financing of industrial equipment imports is seen as a problem. Private firms have not been used to conduct EC audits, as project management remains highly centralized, project staff feel capable of carrying out all tasks, and some countries have too few specialized private firms. Overall, project management has been weak, especially prior to a new workplan in 7/84. The project has suffered from delays, TA problems (apparently now resolved), poor communication among central staff and between ICAITI and SIECA, and cumbersome audit management procedures.