RURAL ELECTRIFICATION I

Final evaluation covers the period 9/74-10/80 and is based on site visits, document review, and interviews with project personnel. The project"s two subprojects carried out by the Empresea de Luz y Fuerza Electrica de Cochabamba (ELFEC) and the Cooperativa Rural de Electricidad de Santa Cruz (CRE) and directed by the Empresa Nacional de Electricidad (ENDE), took 71% more time than planned but achieved the project purpose and goal. The project"s scope was reduced due to higher costs but was ultimately justified in terms of usage -- 88% in the targeted area were provided electricity. ELFEC provided interior house wiring to 9,595 units and service drops to 9,800 units. CRE provided 7,721 units of interior house wiring and 14,000 service drops. Nevertheless, both subprojects suffered from serious construction delays caused by contractors" inability to provide as planned the promised poles and electrical sub-station materials (e.g., transformers). The international oil crisis, imported commodities" rising prices, and Bolivia"s escalating labor costs forced A.I.D. to increase project loan funds and the Government of Bolivia to increase its own commitment to 192% over that originally planned. Other shortfalls included unclear management responsibilities, inadequate USAID administration and technical expertise, and poor coordination among three technical assistance contractors. Also, the rural population has used the elctricity mostly for home and recreational use, with only limited application to small industry and irrigation. The project taught that clear management responsibilities must be established when contracting an international consortium of contractors, and greater effort must be made to evaluate contractor performance at an early stage. It is recommended that there be a vigorous program to inform beneficiaries of electricity"s productive uses; that host-country technicians participate in adapting design standards to local conditions; and that rural electrification and complementary development activities be linked.