RURAL ELECTRIFICATION I

PROJECT IS DESIGNED TO DEMONSTRATE THAT ELECTRICITY CAN BE PROVIDED TO THE RURAL AREAS AT A PRICE WHICH THE MAJORITY OF THE PEOPLE CAN AFFORD. THIS IS THE FIRST EVALUATION OF THE PROJECT AND IS BASED ON FIELD TRIPS TO THE SUBPROJECT SITES AND DISCUSSIONS WITH GOI PERSONNEL, CONSULTANTS FROM THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION AND CT MAIN INTERNATIONAL, OTHER DONOR PERSONNEL, AND USAID STAFF. DURING THE FIRST YEAR OF THE PROJECT, A FOUNDATION HAS BEEN ESTABLISHED WHICH IS EXPECTED TO RESULT IN SMOOTH IMPLEMENTATION IN FUTURE YEARS. BOTH THE STATE POWER COMPANY (PLN) AND THE DIRECTORATE GENERAL OF COOPERATIVES (DGC) HAVE INCREASED THEIR STAFFS. THE DGC HAS ESTABLISHED A SPECIAL PROJECT DEVELOPMENT OFFICE (PDO) TO IMPLEMENT THE PROJECT. BOTH AGENCIES HAVE PREPARED DETAILED PROJECT IMPLEMENTATION PLANS COVERING ORGANIZATION, CONSTRUCTION, TRAINING, AND PRODUCTIVE USES. USING ITS OWN "OFF-THE-SHELF" MATERIALS, PLN HAS CONSTRUCTED A DEMONSTRATION PROJECT IN 3 VILLAGES IN KLATEN, CENTRAL JAVA. AS OF 6/1/79 THEY HAD CONNECTED OVER 600 HOUSES. THE DGC/PDO HAS ORGANIZED 3 OUTER ISLAND COOPERATIVES. THE FOLLOWING LESSONS WERE LEARNED: (1) CONSULTANTS CAN BE MOBILIZED MORE RAPIDLY AND WORK MORE EFFECTIVELY WHEN THE GOI IS RELIEVED OF THE BURDEN OF LOGISTICAL SUPPORT REQUIREMENTS. USAID TOOK A SIGNIFICANT STEP IN THIS REGARD BY PROVIDING HOUSING AND SOME VEHICLES FOR CONSULTANTS BASED IN JAKARTA, LAMPUNG, AND LOMBOK. (2) IN PLANNING FUTURE PROJECTS MORE ATTENTION SHOULD BE GIVEN TO DEFINING THE DUTIES OF CONSULTANTS AS WELL AS THEIR WORKING RELATIONSHIPS WITH THEIR COUNTERPARTS. (3) MORE LEAD TIME SHOULD BE ALLOWED FOR MOBILIZATION OF THE CONSULTING TEAMS AND FOR THE PROVISION OF LOCAL SUPPORT. A POSSIBLE SOLUTION FOR ALLEVIATING SOME OF THE START-UP DIFFICULTIES IN THE FUTURE LOANS WOULD BE TO PROVIDE FOR A SMALL DRAW-DOWN ON PROJECT LOAN FUNDS FOR THIS PURPOSE PRIOR TO SATISFACTION OF ALL CONDITIONS PRECEDENT. (4) THE NUMBER OF CONDITIONS ATTACHED TO THE LOAN AGREEMENT SHOULD BE KEPT TO A MINIMUM.