undp/world bank energy sector assessment program energy
TRANSCRIPT
UNDP/World BankEnergy Sector Assessment Program
Energy Sector Management Assistance Program
Quarterly Information Brief
April 1987
* Achievements and Current Activities
* Opportunities for Consultants
* Cofinancing Opportunities in Pre-investment Work
* Project Financing Opportunities
* Status of Funding
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Table of Contents
I. INTRODUCTION ............. ..... .......... ........... 1
II. STATUS OF THE UNDP/WORLD BANK ENERGY PROGRAMMES ......... 2The Assessment Programme.. ... . ... ......... . . . . . . . . . 2The Energy Sector Management Assistance Programme..... 2Opportunities for Consultants.* .. ...................... 2
III. CURRENT ESMAP ACTIVITIES ..................... ........ .. ...... . . . . . . 12A. Activities Requiring Cofinancing Resources ........ 12B. Cofinanced Activities ..... ..... .... ....... 16C. Activities Financed from ESMAP Core Resources..... 26
Pre-investment Activities...,.... ....... 26Institutional/Policy Support Activities ......... 28
IV. COMPLETED ESMAP ACTIVITIES .............................. 29A. Follow-up PrDjects Requiring Funding ........ * ...... 29B. Funded Follow-up Projects ......................... 35
V. Status of Funding for the Progranmes.................... 43
I. INTRODUCTION
The purpose of this information brief is to informparticipating countries and donor agencies, and potential investors,equipment suppliers, and consulting firms of the activities being carriedout by the two UNDP/World Bank Energy Programmes: the AssessmentProgramme, and the Energy Sector Management Assistance Programme (ESMAP).
The Assessment Programme was launched in November 1980 to helpdeveloping countries adjust to the oil crisis of the 1970s. rndiagnosing the most serious energy problems facing these countries,Assessment teams have found many opportunities to improve pricingpolicies, institutional arrangements, and the use of indigenous andimported resources to make energy use more efficient. Although theoriginal target number of Assessments has almost been completed,additional work of this kind will continue to be carried out under itscompanion programme, ESMAP, which started operations in April 1983.ESMAP was designed to help developing countries define and substantiateproposals for priority investments in the energy sector. In addition tothis pre-investment work, ESMAP also now provides management,institutional, and policy advice to developing country decision makers.Its reports supply these governments a- well as donors and potentialinvestors with the information needed to speed up the preparation andimplementation of energy projects.
Reports of both programmes are distributed to the governmentsconcerned and the Executive Directors of the World Bank. Additionalcopies are made available to members of the UNDP Governing Council andbilateral and multilateral agencies dealing with energy.
The programmes are administered by two divisions in the EnergyDepartment of the World Bank. The Energy Efficiency and StrategyDivision (EGYES) manages the development of strategies -Iich promote theefficient use of energy by major consumers such as power systems,transport, and industry. The Household Energy Division (qGYHE) managesactivities which aim to protect vital household energy resources andpromote the use of proven technologies for new and renewable energyresources.
More specific information on the activities of the programmesmay be obtained by contacting either division at the following address:
Energy Department Telex addresses:The World Bank WUI 64145 IORLDBANK or1818 H Street, N.W. RCA 248423 WORLDBKWashington, D.C. 20433 Cable address:U.S.A. (202) 477-3997 INTBAFRAD, Washington, D.C.
- 2 -
II. STATUS OF THE UNDP/WGRLD BANK ENERGY PROGRAMMES
The Assessment Programme is advancing quickly on its originaltarget of 70 country assessments, having now completed reports on 60countries and being well into work on another 7 of the 10 remainingcountries.
ESMAP activities, which comprise project formulation andjustification, institutional and policy support, and energy assessmentbtatus reports, have now been carried out in about 44 countries. Projectformulation activities continue to predominate, with 29 of theseactivities co.npleted and another 41 ongoing. As the resources of theAssessment Prog:- mme have been drawn down, the demand for institutionaland policy support under ESMAP has increased. As a result, ESMAP now hascompleted 21 of these activities and is in the process of carrying outanother 21. Energy assessment status reports have been completed for 20countries.
Opportunities for Individual Consultants
While all activities under the Programmes are managed by in-house staff at the World Bank, there are many opportunities forindividual consultants to become employed in the diverse mix ofactivities undertaken.
In the Energy Assessment Programme, the main opportunity forindividual consultants to become involved is at the tirde of the mainmission. This mission is usually managed by a staff member of the EnergyDepartment of the World Bank and comprises a mix of in-house staff andconsulting experts whose ..umber depends on the size and complexity of thecountry, the number and types of issues to be addressed, and the amountof information available. Most consultants are hired for six to eightweeks, one week to be briefed in Washington, D.C., three to four weeks togather information in the developing country, and two to three weeks towrite the report.
In ESMAP, employment opportunities for consultants are morevaried, in keeping with the more diverse mix of activities undertakenthrough this Programme. Typically, one or more consultants participatein the pre-investment or institutional/policy support activities, whilethe Energy Assessment Status Reports are prepared by staff missions.Assignments generally lost -omewhat longer than _.or an assessment mission-- about 10-12 weeks, as much as half of which could be spent in thefield. As with the Assessments, ESMAP activities are not contracted outin their entirety to consulting firms. However, for some of the largerESMAP activities, firms can be considered for a major portion of t,e workto be executed.
The selection of consultants for both programmes is based notonly on a demonstrably high degree of professional and technicalcompetence Lut also on their ability to work with developing countryofficials at both the technical and policy level and to communicateresults and recommendations effectively in both oral and written form.In certain cases, oral proficiencv in French, Spanish or Portuguese willbe required. Consultants are selected by the World Bank's EnergyDepartment with the approval of the recipient government. Consultantswho wish to be considered for these assignments should send their resumesfor evaluation to the E..ergy Department. Consultants receive a fulltravel and subsistence allowance in addition to a daily fee which isdetermined by the Personnel Department of the World Bank.
ENERGY SECTOR ASSESSMENT PROGRAM14E
Summary of Activities
Reports Reports Work Remaining
Con.-,Ieted Date Completed Date in Progress Countries
Bangladesh 10/82 Niger 05/84 Angola Chad
Benin 06/85 Nigeria 08/83 Congo Mali
Bolivia 04/83 Papua New Guinea 06/B2 Comoros Laos
Botswana 08/84 Paraguay 10/84 Gabon
Burkina Faso 12/85 Peru 01/84 Honduras
Burma 06/85 Portugal 04/84 Sierra-Leone
Burundi 06/82 Rwanda 06/82 Trinidad & Tobago
Cape Verde 08/84 Sao Tome & Principe 10/85
Costa Rica 01/84 Senegal 07/83
CAte dlIvoire 04/85 Seychelles 01/84
Ecuador 12/85 Somalia 12/85
Ethiopia 07/84 Solomon Islands 06/83
Fiji 06/83 Sri Lanka 05/82
Gambia 11/83 St. Lucia 09/84
Ghana 11/86 St. Vincent 09/84
Guinea 11/86 Sudan 07/83
Guinea Bissau 08/84 Swaziland 01/87
Haiti 06/82 Syria 05/86
Indonesia 11/81 Tanzania 11/84
Jamaica 04/85 Thailand 09/85
Kenya 05/82 Togo 06/85
Lesotho 01/84 Tonga 06/85
Liberia 12/84 Turkey 03/83
Madagascar 01/87 Uganda 03/83
Malawi 08/82 Vanuatu 06/85
Mauritania 04/85 Western Samoa 06/85
Mauritius 12/81 Y.A.R. 12/84
Morocco 03/83 Zaire 05/86
Mozambique 01/87 Zambia 01/82
Nepal 08/83 Zimbabwe 06/82
Total 60 7 3
Cumulative (60) (67) (70)
- 5 -
ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME
Summary of Activities
Completed Current Total
Project rormulation and Justification 29 41 70Electric Power Subsector 12 10 22Energy Efficiency in Industry 6 8 14Energy Efficiency in Transport 0 1 1Renewables/Biomass 11 22 33- Solar Applications (3) (3) (6)- Stoves/Kiilns (4) (4) (8)- Woodfuel Plantations (1) (4) (5)- Agricultural & Industrial Residues (2) (7) (9)- Other (1) (4) (5)
Institutional and Policy Support 21 21 42Assistance to Energy Institutions 7 12 19Preparation to Investment/TA Programmes 8 1 9Household Energy Strategies 0 6 6Aid Coordination 2 0 2Petroleum Product Supply Arrangements 4 2 6
Energy Assessment .;tatus Reports 20 1 21
Total 70 63 133
- 6 -
ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME
Status of Activities
lechnicalWork to Assistancestart in or Investment
Report a/ Work in next 6 Follow-upCountiry Project Completed Progress Months Identified
PROJECT FORMULATION AND JUSTIFICATION
Bangladesh Power System Efficiency Study 02/85 X
Bangladesh Small Uses of Gas Prefeasibility
Study X X
Botswana b/ Pump Electrification Prefeasibility 01/86 X
Botswana b/ Electrification of Tuli Block Farms X X
Burundi Peat Utilization Prospects 12/85
Burundi Improved Charcoal Stoves 08/85 X
Burundi b/ Carbonization of Peat X
Costa Rica b/ Wood Residue Utilization X
C6ted.lvoire b/ Power System Efficiency Study X X
C6tedIvoire b/ Improved Biomass Utilization X
Ethiopia Power System Efficiency Study 10/S5 X
Ethiopia b/ Improved Cooking Efficiency X
Ethiopia Surplus Bagasse Potential 12/86 X
Ethiopia b/ Briquetting of Crop Residues 12/86 X
Gambia Solar Water Heating 01/85 X
Gamb.a Solar Photovoltaic Project 03/85 X
Ghana b/ Wood Residues Utilization X
Ghana Energy Rationalization Enhancementin Industry X
Indonesia Power Generation Efficiency Study 02/86 X
Indonesia b/ Energy Efficiency in Brick
Tile & Lime Industries 03/87
Indonesia Diesel Rehabilitation X
Jamaica b/ Charcoal Production X
a/ Report and follow-up agreed with Government.b/ Cofinanced operation.c/ Activity completed but no report issued.
- ~ ~ 7
TechnicalWork to Assistancestart In or Investment
Report a/ Work In next 6 Follow-upCountry Project Completed Progress Months Identified
Project Formulation and Justification (cont'd)
Kenya Power System Efficiency Study 03/84 XKenya b/ Coal Conversion Action Plan X XKenya bX Energy Efficiency Improvement
in Tea Industry X XKenya b/ Solar Water Heating Project 02/87 XKenya b/ Pern-urban Fuelwood Plantations
Feasibility x
Liberia Power System Efficiency Study X
Madagascar b/ Power System Efficiency Study X X
Malawi Tobacco Industry Energy
Efficiency Programme 11/83 X
Malaysia Power System Efficiency Study 03/87 X
Mauritius b/ Power System Efficiency Study XMauritius ;/ Bagasse Handling for Energy
Product ion XMauritius b/ Bagasse Supply and Year-Round
Power Generation XMauritius b/ Bagasse Use in Tea lIdustry X
Morocco Power System Efficiency Study X
Niger b/ Improved Stoves X
Pakistan b/ Solar Photovoltaic Study X
Panama Power System Efficiency Study 06/83 X
Peru Cooking Efficiency ImprovementProgramme 02/87 X
Rwanda Charcoal Production 02/87 XRwanda Improved Charcoal Stoves 08/86 XRwanda b/ Charcoal Kilns Implementation XRwarnda b/ Charcoal Stoves Implementation X
Senegal Industrial Energy ConservationFeasibility Study 06/85 X
Senegal Industrial Energy ConservationTechnical Assistance Project X
a/ Report and follow-up agreed with Government.b/ Cofinanced operation.
TechnicalWork to Assistancestart in or Investment
Report a/ Work in next 6 Follow-up
Country Project Completed Progress Months Identified
Project Justification and Formulation (cont'd)
Senegal Solar Water Heating Marketing
Study X
Seychelles Power System Efticiency Study 08/84
Sr Lanka Industrial Energy Conservation 04/86 X
Sri Lanka Power System Efficiency Study 07/83 X
Sri Lanka Transport Eneegy Conservation X
Sudan Power System Efficiency Study 06/84 X
Sudan Solar Water Heating Project XSudan b/ Fuelwood/Forestry Feasibility X X
Syria b/ Power System Efficiency Study X
Syria b/ Energy Efficiency in the CementIndustry X
Syria b/ Energy Efficiency in theFirtilizer Industry X
Tanzania b/ Fuelwuod Project X
Tanzania b/ Tobacco Indust ry EnergyEfficiency improvemerlts X
Thailand Rural Energy Issues and Options 10/85 X
Thailand b/ Fuelwood Feasi;Lility Study X
Thailand b/ Improved Charcoal Kilns/Stcrk
Project X
Thailand Lign;te Study X
Togo Nangbeto Reservoir Project 04/86
Togo Power System Efficiency Study X X
Uganda Energy Efficiency Tobacco CuringIndustry 02/86 X
Uganda b/ Energy Efficiency in Brick andTile Industry X X
Uganda Energy Conservation in Industry X XUganda b/ Fuelwood/Forestry Project
Feasibility 03/86 X
Uganda Power System Efficiency Aud2t XUganda b/ Tobacco Curing Pilot Project X
Y.A.R. b/ Household Fuel Marketing Study X
Zimbabwe b/ Power System Efficiency Study 06/83 X
a/ Report and follow-up agreed with Government.b/ Cofinanced operat on.
9-
TechnicalWork to Assistancestart in or Investment
Report a/ Work in next 6 Follow-upCountry Project Completed Progress Months Identified
INSTITUTIONAL AND POLICY SUPPORT
Bangladesh Priority Investment Programmefor Energy 05/83 X
Botswana Review of Electricity ServiceConnection Policy X
Burkina Identification of a TechnicalFaso Assistance Program 03/86 XBurkina Household Energy Strategy XFaso b/
Burundi Assistance for Preparing EnergyProject Profiles for Uonors
Conference 05/85Burundi Assistance for Petroleum Supply
Management and the DevelopmentoF a Petroleum ExplorationStrategy 12/83 X
China Initiation of Rural EnergyAssistance X
Colombia Energy Strategy Paper 12/86 X
Costa Rica Recommended TechnicalAssistance Projects 11/84 X
Gambia Petroleum Supply Management 04/85 X
Guinea- Identification of TechnicalBissau b/ Assistance Projects 04/85Guinea-Bissau b/ Technical Assistance to the
Power Sector X
India b/ Renewable Energy Strategy X
Indonesia b/ Household Energy Strategy X
C6te Regional Training Centerd'lvoire for Power Engineers (ESIE) X
Jamaica Petroleum Procurement,Refining andDistribution Study 02/86
Jamaica u/ Energy Efficiency Building Code XJamaica b/ Management Information System XJamaica b/ Energy Efficiency Standards and
Labels X
Kenya b/ Power Sector Master Plan X
a/ Report and follow-up agreed with Government.b/ Cofinanced operation.
- 10 -
TechnicalWork to Assistancestart in or Investment
Report a/ Work in next 6 Follow-upCountry Project Completed Progress Months Identified
Institutional and Policy Support 'eont0d)
Liberia Recommended TechnicalAssistance Projects 06/85 X
Mali Household Energy Strategy X
Mauritania Bousehold Energy Strategy X
Morocco Optimization of ReservoirManagement X
Morocco b/ Household Energy Strategy X
Niger b/ Household Energy Strategy X
Papua Institutional Review and Identi-New Guinea fication of Technical Assistance
Requirements 10/84 X
Papua Advice on Electricity TariffsNew Guinea and Regulations for Auto-
Generatikn 10/84 X
Paraguay Identification of TechnicalAssistance Projects 09/85 X
Paraguay b/ Technical Assistance in EnergyPlanning X
Sao Tom6 & Identification of TechnicalPrincipe Assistance Projects 06/86 X
Senegal Preparatory Assistance forDonor Meeting 03/86 X
Senegal b/ Household Energy Strategy X
South Pacific Regional Study of PetroleumTransportation 05/86 c/
Sudan Management Assistance to theMinistry of Energy and Mining 05/83 X
Uganda Institutional Review ofEnergy Sector 01/85 X
Zambia Energy Institution Review 11/86Zambia/ CAPCO: Support to BilateralZimbabwe Commission Reviewing Future Role
and Functions 10/84
Zimbabwe Power Sector Management 04/85Zimbabwe b/ Power Sector Management Asszstance X
(Institution Building)Zimbabwe b/ Petroleum Sector Management
Assistance X
a/ Report and follow-up agreed with Government.b/ Cofinanced operation.c/ Activity completed but no report issued.
- 11 -
Technical
Assistance/
Investment
Report Work in Follow-up
Country Completed Progress Identified
ENERGY ASSESSMENT STATUS REPORTS
Bangladesh 04/84 X
Burundi 12/83 X
Gambia X
Haiti 08/85 X
Indonesia 09/84 X
Kenya 04/84 X
Malawi 01/84 X
Mauritius 10/83 X
Morocco 01/86 X
Nepal 01/85 X
Niger 02/86
Papua New Guinea 07/83 X
Paraguay 09/85
Peru 08/85
Rwanda 05/84 X
Senegal 11/84 X
Sri Lanka 11/84 X
Sudan 11/84 X
Uganda 08/84 X
Zambia 08/85 X
Zimbabwe 08/84 X
- 12 -
III. CURRENT ESMAP ACTIVITIES
A. ACTIVITIES REQUIRING COFINANCING RESOURCES
This section describes the pre-investment and technicalassistance activities managed by ESMAP staff where cofinancingopportunities are available. All of these activities are high priorityfeasibility studies or pilot projects which normally cost betweenUS$100,000 and $500,000.
Burkina Faso
Urban Household Energy Strategy. To address the issues ofsupply, conservation and substitution of fuelwood the Government haslaunched the so-called "Three Struggles" strategy which requires aflexible technical assistance support integrating both supply and lemandcomponents in the priority urban areas. The assistance will includethree components: (a) marketing of improved wood stoves, (b) kerosenepromotion, and (c) support to forestry policy. The activity will beimplemented in two phases: a preparatory phase ($70,000), and asubsequent implementation phase. The preparatory phase mission wascompleted in December 1986. Phase II will begin in May, 1987 and willinclude the following: (a) development of a forest management plan forthe country's four major cities; (b) an assessment of interfuelsubstitution options; (c) review of household fuel pricing; and(d) promotion of conservation options, e.g., improved cookstoves. Theentire activity is projected to cost $1.1 million. Cofinancing has beensecured from the Norwegian Government and is being discussed with theDutch Government.
China
Initiation of Rural Energy Assistance. In November, 1986, theGovernment requested ESMAP assistance for a variety of aspects of ruralenergy development. Following discussion of the Government's proposalswithin the Bank, a mission is being fielded in April 1987 to lay thegroundwork for possible future activities, including country-level ruralenergy studies and fuelwood/forestry preinvestment work. Co-financingfor these activities is being sought.
Guinea-Bissau
Technical Assistance to the Power Sector. A mission visitedthe Government of Guinea-Bissau in May 1986 to define terms of referencefor implementing a package of projects which was designed to include:
- 13 -
(a) technical assistance and on-the-job training for plant operators anddistribution personnel; (b) strengthening of metering, billing,accounting, procurement and administrative systems; and (c) preparationof a detailed map of the disatibution system. Financing has already beenreceived from SIDA for (c), and the Bank is in the process of finalizingthe corresponding terms of reference. Work on components (a) and (b) canbegin once financing is identified and an evaluation is made of theresults of recent investments for rehabilitation.
Ghana
Energy Rationalization in Industry. The energy assessmentreport identified important options for improving the efficiency ofenergy end-use in a number of energy-intensive industries, most of whichwould depend on improving operational practices and rehabilitatingcapital equipment. A mission visited Ghana in January 1987 to evaluatethe feasibility of a program designed to stimulate industrial firms toincrease their energy efficiency. The mission also identified theinstitutional, policy and preinvestment requirements, including energyaudits, for an effective energy conservation program. The mission'sdraft report is planned to be discussed with the Government in June1987. The report will contain specific proposals for an industrialenergy rationalization program including technical assistance to NEB anda number of in-depth audits of relatively larger industrial firms.Cofinancing for this $650,000 activity is being sought.
Indonesia
Urban Household Energy Strategy. An Activity Initiation Briefhas been prepared and discussed with the Government of Indonesia. Theproposal includes an urban household supply survey, an analysis of policyand project options for demand management, and interfuel substitution andpricing. The Dutch have expressed interest in financing this $400,000activity.
Mali
Household Energy Strategy Study. This activity will assistwith the formulation of an integrated set ot policies and programs toaddress the worsening fuelwcod deficit in Mali. The study includes fueldemand and supply surveys; analysis of policy options (substitution,demand management, pricing, and supply actions); and preparation of adetailed and coordinated plan of action. Co-financing is currently beingsought for this nine-month study which is estimated to cost $140,000.
Mauritania
Household Energy Strategy Study. The objectives of theproposed study are to analyze the key policy changes necessary to raisethe efficiency of woodfuel use in the household sector and to evaluatethe potential for substituting butane, kerosene, or imported charcoal for
- 14 -
indigenous woodfuels. The total cost of the study is estimated at$260,000, for which co-financing is currently being sought.
Morocco
Power System Efficiency Study. Based on the results of theEnergy Assessment report, ESMAP has received a request from the MoroccanGovernment for this study, which is estimated to cost $180,000.Cofinancing support would be welcome for this activity.
Optimization of Reservoir Management. Both the Administrationde l'Hydraulique and the UNDP Rabat Office are interested in this studywhich aims at optimizing the multiple use of existing reservoirs. TheUNDP is willing to finance $350,000 of the study costs for the firstPhase from its IPF, provided that the Government formally requests thestudy as a priority. The Morocco division in the Bank has agreed toprovide the technical expert-se necessary to implement the study, whichwill be managed by ESMAP. Further financing may be sought to cover thecosts of a second phase.
Pakistan
Solar Photovoltaics Study. The primary objective of thePhotovoltaics Pre-investment Study for Pakistan, Phase I, is to identifytechnically and economically viable photovoltaic applications for remotehealth centers, telecommunications networks, water pumping for potablesupply and irrigation, and rural household electrification, includinglighting and broadcast reception. Phase II aims to establish thepotential market size and to identify measures to promote the viablephotovoltaic applications identified in Phase I. The United States Tradeand Development Program (USTDP) has committed funds ($45,000) for this$73,000 project. Additional funding support is expected from the UnitedKingdom Trust Fund. An AIB has been issued and a mission is to befielded in May, 1987.
Syria
Power System Efficiency Audit. In response to one of the keyrecommendations of the Syria Energy Assessment Report, the Governmentrequested ESMAP assistance to conduct a Power System Efficiency Audit andto prepare a program for reducing power transmission and distributionlosses and improving the efficiency of power generation facilities.Field work was completed in November 1986 and includes donation ofcomputer hardware and software with training for loss analysis andseminars on new condition-based predictive maintenance techniques andmodern steam plant efficiency control. A draft report is expected inApril 1987 which will identify $60 million of follow-up work includingtechnical assistance, electricity distribution hardware, computerhardware and software, and electricity metering equipment. UNDP hasfinanced the bulk of this $177,000 activity, with additional support fromCIDA. Financing for the remaining $25,000 is still being sought.
- 15 -
Uganda
Power System Efficiency Audit. A mission visited Uganda inSeptember 1986 to conduct a Power System Efficiency Audit. The missionreviewed the operations and plans of the Uganda Electricity Board (UEB)and made preliminary recommendations for improvements in management,productivity, customer billing, non-technical loss control and powersystem reliability. A draft report of the mission's findings andrecommendations is planned for April 1987, and the report will bediscussed with the Government in June 1987. Much of this $70,000activity has been financed through the ESMAP core program. However, co-financing support is still being solicited.
Yemen Arab Republic
Hous-.ziold Fuel Marketing Study. With the recent discovery ofoil and gas, YAR has the opportunity to make the transition from abiomass-consuming to an LPG-based household fuel regime. To do so,information needs to be generated on current levels and systems of house-hold fuel supply and demand. Then strategies can be developed for inter-fuel substitution, demand management, pricing and improved supply/distri-bution. The Dutch Government is financing the first phase ($153,000) ofthis $400,000 study, which will be coordinated with the planned analysisof gas utilization options. The Central Planning Organization and theUniversity of Sana'a beg&n executing Phase I of the study in January1987.
- 16 -
B. COFINANCED ACTIVITIES
This section describes high priority preinvestment andtechnical assistance activities where cofinancing resources already havebeen secured.
Botswana
Electrification of Tuli Block Farms. A mission visitedBotswana in November 1985 to prepare a prefeasibility study on the con-nection of the Tuli Block Farms to the Mompule power station. The mainjustification for this project is the replacement of imported diesel oilwith electricity produced by cheaper domestic resources (coal), whichwill also raise agricultural. production in the area. The totalinvestment is estimatea at about US$6.9 million. The Nordic InvestmentBank is interested in financing this project. The draft report will besent to the Government of Botswana at the end of April 1987 for comments.
Burundi
Carbonization of Peat. The objectives of this activity are toexamine the feasibility of carbonizing peat and adapting cookstoves toburn charpeat. If feasible, the activity also will set up a system todeliver and market the product in the household sector. The four-month$190,000 activity will be executed by three ESMAP consultants, withfinancing from the UNDP in Bujumbura. Work will begin shortly after theGovernment formally signs the project document.
Costa Rica
Wood Residue Utilization. This study evaluates the technicaland economic potential for recovering, converting, and utilizing forestand mill residues in the Sarapiqui forest management area and otherlocations in Costa Rica. The main mission will be fielded in June,1987. The $85,400 project budget is funded by the Dutch.
Cote d'Ivoire
Improved Biomass Utilization. This activity covers fourbiomass sources with significant potential for increased utilization:sawmill wastes, palm oil residues, rice husks, and coffee residues. Themain objectives of this activity are to assess the economic and technicalfeasibility for tapping unutilized wastes from these sources to: (a) meetin-house energy requirements at the originating plant; (b) carryoutbriquetting and/or conversion for use as a household fuel; and (c) (inthe case of rice, coffee and palm oil residues), generate power to besold to the national grid. The draft report was discussed with theGovernment in February 1987 and is being finalized. The Netherlands co-financed $67,000 of this $167,000 activity.
- 17 -
In-Depth Study of the Regional Training Center for PowerEngineers. The objective of this activity is to undertake a compre-hensive technical, financial and management review of the EcoleSuperieure Interafricaine de l'Electricite (ESIE) situated in Abidjan,and to provide technical training for electrical engineers in WesternAfrica. The ESMAP report and consultant's reports were presented to theAssociation of Producers and Distributors of Electric Power in AfricanCountries (UPDEA - Union des Producteurs, Transporteurs et Distributeursd'Energie Electrique d'Afrique) and the general managers of UPDEA-memberutilities in November 1986. These comments are expected to be discussedin April 1987. The total cost of the study is US$200,000, of whichUS$100,000 has been co-financed by UNDP.
Power System Efficiency Study. The purpose of this exercise isto assist EECI in defining a program to reduce technical and conversionlosses and to improve the efficiency of generating plants in the electt'icpower system. The main fieldwork for this activity took place inFebruary/March 1986 and a report was presented to EECI and the Governmentin February 1987. Their comments are awaited. The audit will result inrecommendations for rehabilitation work at the steam power plant,improvements in commercial operations, and some technical improvements tothe distribution system, with a total cost of $8.7 million. The activityis being funded by the French.
Ethiopia
Improved Cooking Efficiency. This activity is designed toestablish a self-sustaining improved stoves program for urban households,building upon the existing capacity for stove production. The firstphase of the project is estimated to cost US$320,000 and to last throughJune 1987. A household energy survey has been designed and conducted inAddis Ababa and an improved stove is being tested. Financial support forthis project is being provided by the Netherlands Government (US$75,000),UNDP (US$140,000), and the ILO (US$20,000). The latter is alsocontributing staff resources to help implement the project, which wasinitiated in October 1984.
Ghana
Wood Industry Residues Utilization. A substantial amount ofresidues, particularly sawdust, from the wood processing industry inGhana is largely being wasted. There is potential for using the woodindustry residues to: (a) generate steam at mills for further value addedprocessing; (b) generate electricity at isolated sawmills; and(c) produce charcoal and sawdust briquettes for urban commercial anddomestic consumption. The objectives of this activity are to evaluatethese options and prepare viable projects for utilizing sawmillresidues. The main mission was fielded in Octobe:/November, 1986, and adraft report was issued in March, 1987. This study is projected to cost$133,000 and is funded by CIDA.
- 18 -
Indonesia
Diesel Rehabilitation. ESMAP is assisting PLN, the nationalelectricity company in Indonesia, improve the operation of its isolateddiesel plants. This activity, financed by the Netherlands Government,aims to assist PLN in (a) rationalizing the use of its isolated dieselplants; (b) developing new ways of doing maintenance; (c) developing amethodology to decide which units should be rehabilitated and whichshould be replaced; (d) developing techniques for managing rehabilitationprojects; and (e) training maintenance personnel. The initial outcome ofthe project will be a definition of the rehabilitation work required.The first phase of this work will proceed immediately to develop thetechniques for managing rehabilitation and later phases will form part ofa larger "efficiency improvement" project. Field work for detaileddevelopment of plans for the first phase has started and a report isexpected in August 1987. This activity is financed by the DutchGovernment.
Jamaica
Charcoal Production Program. A mission visited Jamaica inSeptember, 1986 and identified an ESMAP activity consisting of a charcoalproduction program including charcoal kiln improv aent and sawmill wasteutilization. Implementation of this $101,000 activity should commence inthe first quarter of 1987. The activity is financed by CIDA.
Energy Efficiency Building Code. Following on from therecommendations of the Energy Assessment report of April 1985 andbuilding on preliminary work carried out under a USAID program, thisactivity will finance the completion of a national energy efficiencybuilding code. The activity will provide support for the Bureau ofStandards, Institution of Engineers, and the Institute of Architects ofJamaica who will be responsible for writing the code. The activity costs$112,000 and is funded by CIDA.
Management Information System. The Ministry of lines, Energyand Tourism, acting upon the recommendations of the Energy AssessmentReport, has began to develop a management information system (MIS) whichhas provided valuable information for the development of national energypolicies. The existing system is limited in several important areas andthis activity is designed to develop a fully operational system that willfacilitate the Ministry's policy development. The project involvesseveral other Ministries who will use the system and in some casesprovide statistical inputs. The activity costs $63,000 and is funded byCIT)A.
Energy Efficiency Standards and Labels. This activity willsupport the Bureau of Standards and a committee of private sectorrepresentatives in developing a program to improve the general level ofenergy efficiency of selected domestic appliances. The activity willbuild upon an existing labelling program and is expected to generate
- 19 -
substantial long run benefits through reduced oil imports. The activitycosts $77,000 and is funded by CIDA.
Kenya
Coal Conversion Action Plan. This activity will assist thegovernment in evaluating the potential of converting to imported coal inthe industrial sector and in identifying opportunities for energy conser-vation. The study was implemented in two phases. Phase I indicated thatsubstitution of coal in the industrial sector would not be economicallyjustified at current and projected petroleum product prices, except in afew specific cases. Phase II assessed the potential for cost-effectiveenergy conservation in industry and identified specific conservationprojects. Funding for the project is being provided by the AustralianGovernment. The Consultant's report was finalized in February 1987.Investments of more than $5 million are indicated.
Feasibility of Peri-urban Fuelwood Plantations. Based on thework done by the Government of Kenya and various donor agencies, theactivity aims to identify and prepare specific projects that could helpto increase charcoal/fuelwood supplies in Kenya's major urban centers.Phase I of the project was designed to screen available information andto select potential activities for prefeasibility analysis (Phase II).The field work for both phases is now complete and the draft final reportis being reviewed by the Government. The US$279,000 cost of the study isfunded largely by a special grant from the Netherlands Governmenttogether with assistance from the FAO (Cooperative Program).
Energy Efficiency Improvement in the Tea Drying Industry. Theobjective of this study is to define the opportunities for improvingenergy efficiency and substituting alternative fuels in this industry.Where substitution results in an incremental demand for woodfuel or coal,the work evaluates options for supplying this incremental demand. Theactivity may lead to investments in retrofitting and/or in fuelwoodproduction. A draft report was discussed with the Government, has beenrevised, and is now being finalized. The study cost $150,000 and hasbeen funded mostly by the Australian Government.
Power Sector Master Plan. This project will prepare a leastcost power sector expansion plan for Kenya. Financing of itsCAN$l,000,000 cost is being provided by the Canadian InternationalDevelopment Agency (CIDA), and a Canadian consulting firm, AcresInternational, is carrying out the work. The draft report was reviewedby the Kenyan authorities and the Bank in late March 1987, and the finalreport will be issued in April 1987.
Madagascar
Power System Efficiency Audit. A mission visited Madagascar inFebruary/March 1986 to prepare technical assistance projects forimproving the overall efficiency of power system operations. The
- 20 -
activity is financed by the French. The draft report was issued inJanuary 1987 and all of the projects -ecommernded are components of theReference Power Sector Investmen.t Prog.*am (RIP) agreed between IDA andthe Government of Madagascar. The RIP is cofinanced by IDA, the EuropeanInvestment Bank, and Caisse Centrale de Cooperation Economique (CCCE).
Mauritius
Bagasse Handling for Energy Production. A mission visitedMauritius in August/September 1985 to determine the least-cost system forprocessing, storing, and transporting surplus bagasse (crushed sugarcanewaste) for power generation, industrial, and household uses. Theanalysis concludes that large bales (650 kg) are the least-cost handlingoption and recommends installation of a commercial scale facility todemonstrate the optimal handling system for the sugar industry. Thereport has been discussed with the Government. Its conclusions will beintegrated with those of the bagasse supply and power generation analysiscurrently under way and a combined fir.al report will be issued. The costof this activity, US$35,000, has beer. provided by the UNDP.
Bagasse Supply and Year-Round Power Generation. Havingestablished that bagasse can be competitive with coal for powergeneration if handled and stored in large bales, this project estimatesthe potential availability and cost of bagasse for use in powergeneration and the year-round -firm power output achievable by the bagassegeneration plants. A draft report was issued in December 1986. Theconclusions of the report, to be issued in April 1987, will feed directlyinto the preparation of a least-cost power expansion plan. Funding forthis $40,000 study is being provided by UNDP.
Bagasse Use in the Tea Industry. This study will evaluate thepotential for substituting bagasse for fuel oil in the tea industry inMauritius and will also assess the pos-ibility for similar substitutionsin other Mauritian industries. The exercise is estimated to cost $50,000and UNDP co-financing has been approved. When completed, the study willbe integrated in Mauritius' least-cost energy plan.
Power System Efficiency Audit. A mission visited Mauritius inFebruary/March 1986 to prepare a project-oriented package of steps toreduce losses and improve the efficiency of the power system. Theactivity cost about US$160,000, of which the UNDP provided about $70,000,the balance being provided by the French. The draft report has been sentthe Government tor review.
Morocco
Household Energy Strategy. Based on .he status report forMorocco, a Project Document was prepared and sent to the Government whichout'lines a two-year effort to develop an energy project and policies forMorocco's long-neglected household sector. The study is cofinanced bythe Bank and USAID. The proposal includes surveys of household
- 21 -
consumption and supply sources as well as policy formulation in severalareas including fuelwood substitution, demand management, pricing, andenergy supply options. Field testing of the survey questionnaires tookplace in December, 1986, and the full survey work began in March, 1987.
Niger
H-usehold Energy Strategy. The objective of this activity isto establish the socio-economic viability of fuelwood substitutes forurban households, emphasizing kerosene cr LPG in the short-term. Theactivity will also assist the Government in developing an operationalplan for more rational management of the woodfuel production andmarketing system through more effective pricing, fiscal and legalmeasures. Finally, the activIty will also assist in the dissemination ofimproved woodstoves (Mai Sauki) outside Niamey. The project is financedby the Norwegian Government through UNSO and executed under ESMAP. Imple-mentation began in March 1986 and will sost about US$340,000. A draftreport has been circulated in the Bank and is now being revised fordiscussions with the Government. The project is expected to result in aninvestment and policy package for a national household energy strategywhich will be incorporated in a proposed FY87 IDA Energy II Project.
Improved Urban Cookstoves Project. The objective of thisproject is to establish a self-sustaining production and marketing systemfor disseminating portable and prefabricated improvedt woodstoves. Theproject will build upon the successful experience gained during thedevelopment and dissemination of the "Ouaga stove" in Burkina Faso. Theproject is being implemented in two phases. Phase I is carrying outproduction and marketing on a pilot basis over an eight-month period at acost of US$150,000. Based on an evaluation of the first phase, Phase IIwill promote these efforts on a larger scale over 18 months at a cost ofUS$350,000. The German Government has agreed to contribute theequivalent of US$200,000 towards the cost of this project. An additionalUS$200,000 has been provided by the Netherlands. The first supervisionmission visited Niger in April 1985 to evaluate the progress made duringthe first phase. A second supervision mission visited Niger in January,1986 and found zhe interim results of the project very encouraging. Amid-term report on the project was circulated in July, 1986. A thirdsupervision mission, in October 1986, found that the encouraging trend ofsales and the proper use of stoves and wood-saving had continued. Thecampaign to sensitize men (who purchase the cook-stoves) to householdenergy decisions achieved very good results, and sales by the privatesector gradually replaced sales by the project itself. Over 35,000stoves were sold on a cost recovery basis, almost 150% of projected salesfor the entire two-year project. A completion report is beingprepared. A few follow-up activities will be executed during 1987 suchas an assessment of the sensitization methodologies used, the impact onwood consuanption, a pilot project to disseminate Mai Sauki in ruralareas, and market testing of improved kerosene scoves. The total cost ofthese follow-up activities ($55,000) is expected to be financed by theDutch Government with a contribution in kind from GTZ.
- 22 -
Paraguay
Technical Assistance in Energy Planning. The purpose of thisproject is to strengthen the Energy Unit of the Secretaria Tecnica dePlanificacion (STP), which acts as the Technical Secretariat of the(omision Nacional Energetica (CNE). As CNE's Technical Secretariat, theSTP energy unit will perform technical and economic analyses to providethe CNE with appropriate tools to define a comprehensive energy policy.A consultant financed under this project is working in Asuncion. Thefirst phase of the assistance -- development of energy balances for 1970-1984, analysis of firewood consumption and training of STP staff -- hasbeen completed. The second phase -- energy policy analysis, energypricing, economic evaluation of energy projects, and training -- began inOctober 1986 and will continue for one year. The activity costsUS$95,000 and is financed entirely by the UNDP country IndicativePlanning Figure (IPF).
Senegal
Household Etergy Strategy. Over 90% of firewood and charcoalconsumption in Senegal is accounted for by the residential sector. Tosupport Shis, the country is running an annual fuelwood deficit of400,000 m over sustainable supply, which is contributing to a decline insoil fertility, an increase in desertification, and a fuelwood crisis.Because urban households disproportionately contribute to this problem,there is a need to develop a household energy strategy for urbanconsumers. This will involve: (3) developing a disaggregated data basefor analytical purposes; (b) identifying, testing and establishing ahierarchy of project and policy opcions (substitution, demand managei-ent,pricing, increasing supply); and (c) preparing a detailed, costed andcoordinated plan of action. A team will be in the field from Januarythrough May 1987, with Bank supervision taking place in February andMay. This activity is projected to cost $320,000 and is funded through aNorwegian Trust Fund.
Sudan
Fuelvood/Forestry Feasibility Report. The urgent need toaddress the rapidly worsening fuelwood situation was highlighted in the1983 Energy Assessment Report and reiterated in the ESMAP Status Reportin 1984. During 1985 a group of donors including the World Bank prepareda Forestry Sector Review which identified Sudan's most pressing needs inthe sector and outlined a development program. The Program includes:woodfuel conservation, natural forest protection and management,establishment of new fuelwood resources, agro-forestry, industrial forestmanagement, institutional development of the Central ForestAdministration, strengthening of forestry research, education andtraining, resource inventories, and increment assessments. Based on theForestry Sector Review, the Government requested ESMAP to prepare adetailed feasibility report which can be used by donors to appraise amulticomponent fuelwood/forestry project. Preparation is being done in
- 23 -
two phases: Phase I was carried out between June and November 1986 by alocal counterpart team which collected background data and prepared thepreliminary project design, costing and analysis. The local teampresented its findings in a re?ort which was used by the Phase LImission, fielded in November/December, 1986, as the basis for detailedproject design. The Phase II mission included specialists from ESMAP,the Bank and FAO-CP otaff, and consultants. The individual specialists'reports are being consolidated into a first draft on the main report,w.'ich will be ready by May/June 1987, cleared, and sent to the Governmentof Sudan by July/August, for discussion and clearance. The total directcosts of this activity will amount to over $400,000 and funding is beingprovided jointly by DANIDA, FINNIDA, NORAD, and Dutch Aid, whileadditional support is being provided under the FAO Cooperative Programand by the World Bank.
Syria
Energy Efficiency in the Fertilizer Industry. The Governmentof Syria has requested ESMAP assistance in preparing a project documentfor this activity. A draft project document was discussed withgovernment officials and the UNDP Resident Representative in Damascus inNovember 1986 and, after discussion within the Bank, a revised projectdocument was prepared and sent to Government and UNDP for signatures inFebruary 1987. UNDP has agreed to allocate $160,000 for this projectwhich is scheduled for implementation in July 1987.
Energy Efficiency in tL3 Cement Industry. The Syria EnergyAssessment accorded high priority to improving energy efficiency in theindustrial sector, notably the cement and fertilizer industries. Uponrequest of the Government, an activity to improve the energy efficiencyof cement plants under the Ministry of Industry was included in the ESMAPfollow-up program. About US$184,000 of project preparation costs are tobe funded from the UNDP country IPF. Project implementation wasinitiated in November 1986, and the report of Phase I work is scheduledfor April 1987.
Tanzania
Peri-Urban Fuelvood Supply. This study's objective is toidentify economically viable options to alleviate growing shortages andbottlenecks in the supply of charcoal and fuelwood to the main urbancenters in Tanzania, namely Dar es Salaam, Dodoma, Miranza, andArusha/Moshi. Phase I of the study ($153,000 funded by CIDA) focuses onidentifying the major issues and options. A project based on theseviable options will be prepared in Phase II ($220,000 funded by SIDA).An ESMAP mission visited Tanzania in October, 1986 to complete thefieldwork for Phase I. An interim report is being prepared fordiscussion with the Government in April, 1987. Phase II is scheduled tobegin in June, 1987.
- 24 -
Tobacco Industry Energy Efficiency I-proveme.nts. A recon-naissance mission visited Tanzania in August 1986 and agreed with theGovernment on the scope, detailed terms of reference, and timetable forthis study. The main objective is to raise the efficiency of woodfueluse for tobacco curing. The activity will identify and evaluatealternative measures and recommend a financially and economically viableprogramme for demonstrating and disseminating the measures proposed. AnActivity Initiation Brief has been prepared and a mission is scheduledfor May 1987. The funding required to implement this $150,000 activitywill be provided by SIDA.
Thailand
Lignite Study. This study will examine the non-power lignitemarket, focusing on issues of current and prospective demand and lignitesupply. It will examine the economic benefits of lignite as compared toalternative fuels, as well as the effect of institutional arrangements onlignite exploration and development. The study will cost $165,000 andUNDP has agreed to fund it from the country IPF. A draft projectdocument has been sent to Thailand for approval, and the study isexpected to get under way in mid-1987.
Togo
Power System Efficiency Audit. A mission visited Togo inSeptember 1986 to prepare a Power System Efficiency Audit of theCompagnie d'Energip Electrique de Togo. The purpose of the Audit was to:(a) evaluate the efficiency of commercial operations; (b) review thegeneral management of the utility; (c) assess options for improving theefficiency of the diesel plants; and (d) prepare Terms of Reference forimprovements based on the findings in (a) and (b). About $33,000 of this$125,000 activity has been financed by the Italian Trust Fund. Theremainder has been financed by the French. The draft Audit reportidentifies $600,000 in technical assistance requirements, and $800,000 inradio equipment, machine tools, and electricity meters. The draft reportwill be sent to the Government in early April 1987.
Uganda
Energy Efficiency in the Brick and Tile Production Industry.The activity envisaged will recommend ways to improve energy efficiencyin artisanal and small-scale brick and tile producing enterprises,focusing mainly on relatively simple and inexpensive energy conservationmeasures. The work would identify and evaluate alternative measures, andrecommend a financially and economically viable program for testing anddemonstrating the measures proposed, and define a nationwidedissemination effort. The activity is being funded by the UNDP CountryIPF for Uganda. The initial mission, fielded in July 1985, was curtailedfor security reasons. A reconnaissance mission visited Uganda in August1986 and agreed with the Government to complete the field work in thefirst half of 1987 after the availability of the origi-.al consultants canbe confirmed.
- 25 -
Zimbabwe
Pover Sector Management Assistance. This activity originallyhad two main components: (a) the attachment to the Department of Energy(DOE) of an experienced Power Sector Planning Adviser (12 man-months);and (b) the provision of the services of consultants on short-termassignments (total 18 man-months). Both components are intended toassist the Government in strengthening Ats capabilities to supervisepower sector activities and particularly to prepare and implement plansto establish the Zimbabwe Electric Supply Authority (ZESA). Consultantsfor both components of the project have been appointed and the field workstarted in April 1985. The duration of the project has been extended byone year with provision for an additional 12 man-months for the ResidentAdvisor. A series of in-house training programs is being implemented forthe DOE. The UNDP has increased its contribution from the Country IPFfunds for Zimbabwe to $384,000.
Petroleum Sector Management Assistance. This activityincludes: (a) Lhe development and installation of a management informa-tion system (MIS) which will be used by the Department of Energy and theNational Oil Company of Zimbabwe. The MIS includes an oil accountingsystem, an inventory control module, a scheduling program, a supply-demand program, and training for DOE and NOCEIM staff. This will enhancethe Government's capabilities to monitor petroleum stocks and to programdeliveries by bulk storage depots; and (b) a one-week intensiveseminar/workshop on petroleum industry practices for senior governmentofficials. The project costs US$260,000, of which US$237,000 is fundedfrom the UNDP Country IPF. The reconnaissance mission was fielded in May1986. The seminar was held in late September 1986, and the first phaseof the MIS installed in October 1986. A progress report detailingchanges made in the first phase together with the work program for thesecond phase will be circulated shortly.
- 26 -
C. ACTIVITIES FINANCED FROM ESMAP CORE RESOURCES
This section describes the various ongoing and planned pre-investment and institutional/policy activities financed by ESMAP coreresources. Most of these activities cost less than US$100,000; ESMAPmanagement always is willing to consider offers for cofinancing theseactivities provided that processing suan offers does not delayimplementation.
Pre-investment Activities
Bangladesh
Small Uses of Gas Prefeasibility Study. This activity iden-tifies the economic potential for expanding the use of abundant naturalgas among small industrial and commercial users. It outlines a costedaiid phased programme to establish this potential and prepare a method-ology to replicate this work in other countries where natural gas is inabundant supply. The Government has approved the report in substance butESMAP is awaiting formal clearance to proceed with securing funds for thefollow-up pilot projects.
Liberia
Power System Efficiency Study. This activity identified theneed for complete restructuring of the utility as a prerequisite for therestoration of normal service reliability and loss reduction. The draftreport was sent to the government for review in July 1986 and ESMAP isstill awaiting their clearance.
Government of Sao Tome and Principe
Identification of Technical Assistance Projects. An ESMAP mis-sion in May 1986 attended a follow-up meeting to the Round Table ofDecember 1985 in order to join with the international donor community andthe Government of Sao Tome and Principe in allocating technical/financialresources to priority projects identified in the Energy Assessmentreport. An urgently required rehabilitation of the power sector is to befinanced by an IDA credit and the GSTP has requested a Special ProjectPreparation Facility (SPPF) from the Bank to carry out a three-componentproject, consisting of a forest inventory, a woodfuels supply -nd demandstudy, and an analysis of the ecological impact of fuelwood use for cocoadrying. ESMAP is assisting in the preparation of the SPPF. ESMAP willconsider undertaking preinvestment activities directly if and whenrequested by the government.
- 27 -
Senegal
Solar Water Heating - Marketing Study. The July 1983Assessment report for Senegal as well as the Energy Assessment StatusReport identified this as a priority area for follow-up technicalassistance. A mission in March 1985 concluded that the potential forenergy savings, mainly by substituting electric water heating in theresidential sector, was over 16,300 toe/year. The activity also focusedon the design of appropriate manufacturing and maintenance facilities,training, financial and economic analysis, a marketing strategy, rolesand responsibilities of the government, and a solar water heatingdevelopment project including a demonstration program. The report isbeing reevaluated in the light of government comments.
Sri Lanka
Transport Energy Conservation Study. As agreed with theGovernment of Sri Lanka and the South Asia Transportation Division of theWorld Bank, this study focuses on analyzing the pricing of transportfuels. The study results will then serve as an input to an ongoingtransport sector planning study being funded under the IBRD Second RoadsProject. This will permit the Inter-Ministerial Committee for Co-ordination and Planning of Transport, which is undertaking the sectorplanning study, to formulate proposals to optimize the economicefficiency of Sri Lanka's transport system taking the true economic costof energy into account. A draft report on this ESMAP study has beenwritten and will be discussed within the Bank shortly.
Sudan
Solar Water Heating. The Energy Assessment Status Mission inJuly/August 1984 identified solar water heating for low temperature com-mercial and industrial applications as a promising area to exploitSudan's renewable energy resources. Subsequently, an ESMAP missionassessed the market potential for solar water heating, determined theprerequisites for developing the identified market, and designed appro-priate manufacturing and marketing strategies. It also focused on iden-tifying pilot/demonstration projects, working out equipment and invest-ment requirements for converting the identified establishments to solarwater heating, and determining the economic and financial justificationfor the conversion. The Activity Completion Report is being reexaminedin light of government comments.
Thailand
Northeast Region Woodfuels Supply Preinvestment Study.Following the recommendation of the ESMAP Rural Energy Assessment Report,the objective of this activity is to assist the Government in preparing afuelwood project and a project preparation document that can serve as asatisfactory basis for appraisal by interested donors. Tree plantingactivities to be supported by the proposed project include: (a) farm
- 28 -
forestry; (b) institutional/ village woodlots; (c) commercial woodfuelplantations; and (d) rehabilitation of forest reserve fringe areas. Theactivity is being carried out in two stages: (a) project identification,for which a mission was fielded in June/July, 1986 and a project workingpaper completed in November 1986; and (b) the final project preparation,for which a mission was fielded in January 1987 and the draft report iscurrently being prepared.
Improved Charcoal Kilns/Stoves. Intended to complement theabove supply study by focusing on the demand side, this activity willassist the Government in devising the most effective way to disseminateimproved stoves and charcoal kilns on a large scale. A joint team ofexternal and local experts carried out the work in June/July 1986 and thedraft report will be sent to the Government soon for review.
Uganda
Energy Conservation in Industry. The objective of thisactivity is to formulate a policy framework and define a strategy forpromoting cost-effective energy conservation in the industrial sector. Areconnaissance mission was fielded in November 1984 to determine thescope for energy conservation in industry under the prevailingconditions. The draft report is expected to be circulated for internalreview in June 1987, before being sent for government clearance.
Institutional/Policy Support Activities
Botswana
Review of Electricity Service Connection Policy. TheGovernment of Botswana requested ESMAP assistance for a comprehensivereview of the policy, practices and arrangements which affect theBotswana Power Corporation's (BPC's) ability to provide electricity toresidential consumers. The inadequacy of existing arrangements for lowvoltage connection had been noted as an important issue in the EnergyAssessment Report. A mission visited Botswana in November 1985 to reviewthe existing policy and analyze alternative financing mechanisms thatwould help to provide service to some customers. The report was sent tothe Government for comment in January 1987.
India
Renewable Energy Strategy. India is giving greater attentionto renewable energy technologies as a way to meet energy demand. Thisstudy will (a) assess the prospects for greater dissemination ofnonconventional energy technologies, both through commercial markets andgovernment-financed dissemination activities; and (b) identifyopportunities for preparing bankable projects in selected technologyareas, including specific requirements for pre-feasibility andfeasibility studies. The main mission was fielded in January, 1987, anda draft report is currently being prepared.
- 29 -
IV. COMPLETED ESNAP ACTIVITIES
This section describes follow-up investment and technicalassistance projects for which ESMAP pre-investment work has beencompleted. Part A includes projects for which financing is now beingsought. Part B includes projects for which financing already has beenidentified. ESMAP staff are available to brief potential investors anddonors on these projects and assist in contacting the relevant officialsin the country; they also can become further involved in implementingthese projects if so requested by the government and the financing agencyinvolved.
A. FOLLOW-UP PROJECTS REQUIRING FUNDING
Botswana
Pump Electrification Prefeasibility Study (ESMAP Report Number047/86). A mission visited Gaborone in April 1985, to determine thetechnical and economic feasibility of converting water pumps from dieselto electric power. The final report was issued in January 1986, andidentifies a group of 23 villages where pump electrification appears tobe attractive. The total investment required is about US$1 million, andSIDA has expressed strong interest in financing the project.
Current Status: The work completed under this study led to theprefeasibility activity for electrifying the Tuli Block Farms,now ongoing.
Burkina Faso
Identification of Technical Assistance Projects (ESMAP ReportNumber 052/86). This report identifies priority programs for:(a) household energy; (b) petroleum import management; and (c) thediagnosis of power plant rehabilitation needs. Other activities of lowerpriority also are identified.
Current status: Norway has provided funding for the toppriority project--Urban Household Energy Strategy Study--anddiscussions are continuing with other donors concerning thefinancing of (b) and (c) above.
Costa Rica
Recommended Technical Assistance Projects (ESMAP Report Number027/84). Following up on the technical assistance priorities identifiedin the Energy Assessment report, this study sets out the terms ofreference, scope of work, manpower requirements, cost and scheduling ofsix priority technical assistance projects in the energy sector. Theseprojects and their estimated cost are:
- 30 -
(a) Establishment of a Maintenance -Programme for Public Buses:Cost: Phases I and II - US$90,000; Phase III - US$4.1 million.
(b) Production of Charcoal from Forest Residues: Cost: Phase I -no capital cost; Phase II - US$85,000; Phase III - US$430,000.
(c) Electric Power Demand and Simulation Model: Cost: Phases Iand II - US$16,000; Phase III - US$32,000.
(d) Optimization of Power Sector Investments: Cost: Phase I -US$40,000; Phase II - US$32,000.
(e) Technical Assistance in Systems Operations: Cost: US$25,000.
(f) Fiscal Policy and Petroleum Product Prices Study: Cost: PhaseI - US$16,000; Phases II and III - US$32,000.
Current Status: The Government of Costa Rica is seekingfunding for these projects. Italian donors have expressed aninterest in financing some of the projects.
The Gambia
Solar Water Heating Retrofit Project (ESMAP Report Number030/85). The final report of this study was issued in February 1985.The report presents a preinvestment analysis of solar water heatingretrofit at the five largest tourist hotels. It also includes terms ofreference to extend the experience to the remaining tourist hotels and toevaluate the potential for solar water heating in the residential andinstitutional sectors. The total investment for the retrofit program isestimated at $500,000, including spares, contingency, and technicalassistance.
Current Status: The Government has discussed implementation ofthis project with Swedish commercial interests. However, theGovernment is reconsidering the project due to a restructuringof the local hotel industry.
Petroleum Supply Management (ESMAP Report Number 035/85). Thisactivity: (a) defines measures to reduce petroleum acquisition costs;(b) proposes methods to improve the Government's capability to monitorthe petroleum sector through the design of volumetric/finaricialaccounting systems; (c) defines terms of reference for an energy econo-mist who will set up the energy un.t and train nationals in the differentaspects of the sector; (d) proposes a flexible pricing structure in thepetroleum sector to better reflect economic costs and simplify adminis-trative work; and (e) define a strategy to determine levels of compulsorystocks and assess the costs of allocating the oil terminal in Banjul.
- 31
Guinea-Bissau
Recomended Technical Assistance Projects (ESMAP Report Number033/85). A mission visited Guinea-Bissau in August 1984 to discuss thedraft Energy Assessment Report and review with the Government a number oftechnical assistance priorities which have been identified in thereport. As a result of the discussions, the mission prepared a $320,000package of terms of reference for projects which have the commonobjective of strengthening the power sector.
Current Status: The projects recommended in this report formedthe basis of an activity to provide technical assistance to thepower sector. ESMAP is executing part of this activity withfinancing from SIDA.
Indonesia
Power Generation Efficiency Study (ESMAP Report Number050/86). A mission visited Indonesia in November/December 1984 to assessthe efficiency of electric power generating facilities and prepare termsof reference for the implementation of recommended improvements. Themission concluded that PLN could achieve substantial cost savings bymodifying the equipment at some of its power plants and by improving itsoperating and maintenance procedures. The mission also reviewed PLN'sproposed improvement plan for diesel plant maintenance. The final reportpresents a set of programs to improve efficiency in the Java powersystem, and a program to reorganize maintenance of diesel plants.
Current Status: The Nordic Investment Bank has expressedinterest in financing the follow-up work on the Java system,and the Dutch Government as well as the Bank, has expressedinterest in financing the program to improve diesel plantmaintenance.
Energy Conservation in the Brick, Tile, and Lime Industries(ESMAP Report Number 067/87). This report defines a project which wouldprovide avenues for improving energy efficiency through technicalsupport, training, and limited investments at the enterprise level. Theproject costs about $365,000, all external financing. The NetherlandsEmbassy in Indonesia has expressed an interest in financing the project,which the Government of Indonesia will be following up.
Kenya
Solar Water Heating Study (ESMAP Report Number 066/87). Basedon the work already done by the Government and donor agencies, this studyevaluates the potential for substituting solar water heaters forelectricity in the residential/commercial, industrial, and institutionalsectors. It proposes a policy and incentive framework for .localproduction and dissemination of solar water heaters. Funding for the$80,000 study was provided by the Canadian International DevelopmentAgency (CIDA).
- 32 -
Current Status: The Activity Completion Report was issued inFebruary 1987. The Government of Kenya is discussing financingof the follow-up technical assistance and pilot demonstrationwith CIDA and other donors.
Liberia
Recommended Technical Assistance Projects (Report Number038/85). The October 1984 mission, which discussed the draft EnergyAssessment Rcport, also identified and prepared terms of reference for anumber of priority projects in the energy sector. A brief descriptionand terms of reference for further work v'ere prepared for the followingprojects: (a) improvement of charcoal utilization efficiency; (b) pre-investment analyses of ore-drying using fuelwood; (c) power systemefficiency improvement; and (d) review of power exchange possibilitiesbetween a mining enclave and a power utility.
Current Status: The power system efficiency study is beingcarried out by ESMAP with funding from its core resources.Financing for the remaining technical assistance projects hasyet to be secured.
Malaysia
Sabah Power System Efficiency Study (ESMAP Report Number068/87). This report reviewed the generation, transmission anddistribution, and commercial operations of the Sabah Electricity Board(SEB) and found serious problems with non-technical losses and collectionperformance. To address these problems the report calls for a completerevamping of the customer service system, including computerization ofthe billing and customer records. Major improvements also arerecommended in transmission and distribution operations, and ingeneration by improving the cooling system at the KK diesel plant. Thetotal cost of the recommended improvements is $9.5 million.
Current Status: The final report was issued in March 1987.Some of the improvements are expected to be financed through aWorld Bank power project.
Papua New Guinea
Electricity Tariff and Auto-Generation Regulations Study (ESMAPReport Number 024/84). A number of electricity cogenerationopportunities were identified in this study which can be exploited afterthe tariff structure is revised to account for long run marginal costs.A mission visited Papua New Guinea in November 1983 to assist the Govern-ment/ELCOM in modifying the tariff structure, and the final report wasissued in October 1984.
Current Status: The report has been circulated to theinternational donor community, ard the study is meant to serveas a model to structure electricity power tariffs in thecountry.
Peru
Proposal for a Stove Dissemination Program in the Sierra (ESMAPReport Number 064/87). The principal objectives of this study were to:compare traditional technologies with improved modern stoves andutensils; identify economically viable self-sustaining ways to produceand disseminate reliable and energy efficient woodstoves; and formulate acosted and phased program of action to achieve this.
Current Status: The Activity Completion Report, issued inFebruary 1987, delineated a two-phase, $600,000 program whichthe Government of Peru has begun to implement to a limitedextent. However, the Government still is interested inobtaining donor financing, particularly for the foreignexchange component of the program.
Senegal
Industrial Rnergy Conservation Report and a Follow-up TechnicalAssistance Projsct (ESMAP Report Number 037/85). The July 1983 Assess-ment Report for Senegal recommended the development and implementation ofa comprehensive energy conservation program beginning with the industrialsector for which the potential for substantial energy savings has alrea6ybeen established. The July 1984 Energy Assessment Status Missionincluded an energy conservation specialist who visited aoout 20 indus-trial plants to update the Energy Asses3ment's findings on the energysavings potential in the industrial sector. On the basis of themission's findings, a report was prepared which defined a three-yearproject to establish and implement an Industrial Conservation Program,supported by a US$2.6 million technical assistance package.
Current Status: The first year of the technical assistancepackage is being funded by the UNDP through its Country IPFwith the Bank acting as executing agency. The 1986 projectcommenced in January 1986 and three supervision missions tookplace in April, June and December 1986. The activities carriedout include an Institutional Environment Study auid a survey ofenergy consumption in industry. The idea of creating a NewOffice of Energy Conservation (NOEC) was dropped and insteadthe existing OEC will be the main thrust of the energyconservation program, which will extend at least through 1988and 1989. An audit program funded by CIDA to identify fenergysaving measures in 14 enterprises began in late October 1986,and preliminary visits to 5 enterprises were carried out inNovember and early December. The final consultants reports forPhase I have been received and reviewed within the Bank.
- 34 -
Financing for the second and third phases, which will involveabout $2.5 million in technical assistance and $2 million ininvestments, is still being sought.
Sri Lanka
Industrial Energy Conservation (ESMAP Report Number 054/8b).This activity involved carrying out prefeasioility studies of possibleenergy improvements in 16 industrial plants, one hotel and one hospitalin Sri Lanka, as part of an ongoing government program to promote energyconservation in industry. The studies identified highly profitableretrofitting projecLs involving investments of US$9.1 million. Takingall the projects together, the simple economic payback is 1.8 years.
Current Status: Funding is being sought to take theprefeasibility studies to the full feasibility level. Terms ofreference have been included in the ESMAP Report.
Zimbabwe
Power System Efficiency Study (ESMAP Report Number 005/83).This study identified a Distribution System Betterment Project comprisinga package of engineering services and software, and capacitors, conduc-tors and metering equipment aimed at reducing the losses in the Electri-city Supply Corporation (ESC) and Municipality distribution systems. Theestimated cost of the project is US$3.3 million (including US$0.5 millionin local currency).
Current Status: This study was executed under the oldElectricity Supply Commission in Zimbabwe. Since then thepower sector has been reorganized along the lines recommendedin the Power Sector Maragement Assistance activity beingcarried out by ESMAP. Once the reorganization of the powersector is complete, the new Zimbabwe Electricity SupplyAuthority (ZESA) intends to take up the recommendations of theloss reduction study in the context of its transmission anddistribution planning objectives. Funding for some componentsof the project may be included in the next World Bank-financedpower project, but additional funding will probably berequired.
- 35 -
B. FUNDED FOLLOW-UP PROJECTS
Bangladesh
Power System Efficiency Study (ESMAP Report Number 031/85).This study reviews the existing power system loss reduction programme ofthe Bangladesh Power Development Board and proposes measures to reducelosses to economic levels. It identifies the sources of losses and makesspecific recommendations for implementing the loss reduction programme.The report identifies about US$50 million in potential investments.
Current Status: Many elements of these recommendations havebeen included in a $56 million Power Transmission andDistribution Project financed by IDA, UNDP, and the ADB.
Burundi
Petroleum Supply Management (ESMAP Report Number 012/83). Thisstudy reviewed existing and potential arrangements for importing anddistributing petroleum products in Burundi. The Activity CompletionReport sets out a number of recommendations for diversifying supplyroutes and strengthening the Government's capacity to formulate andimplement a cost-effective petroleum supply strategy. The report alsodefines a one-year technical assistance package to help the governmentdevelop this capability.
Current Status: The technical assistance identified in thereport has been included as a component in the ongoing IDAPower Transmission and Distribution Project for Burundi.
Presentation of Energy Projects at the 1984 Round Table (ESMAPReport Number 036/85). An ESMAP mission helped the Government prepare aportfolio of priority investment and technical assistance projectprofiles which were presented to potential donors at the UNDP-sponsoredRound Table meeting in Bujumbura in February 1984. The final report onthis activity, issued in May 1985, includes an update on the evoluton ofBurundi's energy sector in general and, in particular, on the status ofthe projects presented at the Round Table.
Current Status: Since February 1984, progress has been made tovarying degrees on a number of these projects and technicalassistance activities, for example in the areas of woodfue'plantations, petroleum supply arrangements, conversion ofindustrial boilers to peat, the Ruzizi II-Burundi electricityconnection, rationalization of Bujumbura's electricity network,and promotion of improved charcoal stoves in Bujumbura.
Assistance for Developing Petroleum Exploration Strategy. Theobjective of this task was to provide technical advice to the Governmentto help prepare for negotiations with a private oil company on
- 36 -
exploration activity in Burundi. The services of an exploration adviserand a petroleum exploration contract negotiator were funded under thisactivity, as was some reinterpretation of gravity data.
Current Status: The negotiations have led to the governments'signing a contract with the private company, which in turn hasinitiated its exploration work in Burundi.
Improved Charcoal Stove Strategy (ESMAP Report Number042/85). With ESMAP support in stove design, the IDA Urban DevelopmentProject (Cr. 1049-BU) has produced an improved stove which, at a slightlyhigher production cost than the traditional model, consumes about 30%less charcoal. The ESMAP report proposes a program for marketing thisstove which involves training artisans in producing the new stove, andextension agents in promoting the stoves and energy-saving cooking tech-niques to Bujumbura households. This campaign is to be conducted overfour years to ensure adaptation to these new cooking practices. Theprogram's total cost is about US$425,000.
Current Status: ESMAP is supervising the marketing program andartisanal training which are being implemented under the IDAUrban Development Project. When this credit expires, theprogram will be completed under IDA's Power Transmission andDistribution Project (Cr. 1495-BU).
Peat Utilization Prospects (ESMAP Report Number 046/85). Theactivity completion report for this activity was issued in December1985. The study evaluated the technical and economic parameters ofconverting prospective institutional and industrial energy consumers ;.othe use of peat. A tbree-phased plan was proposed to expand the peatmarket from its present level of 9,000 tonnes per year to aneconomically-justified level of 28,000 tonnes per year. The first phaseincluded peat testing to guide boiler design and definition of a programtc reduce the cost of producing peat. as well as a reorganization studyof ONATOUR.
Current Status: Financed under an IDA credit, the first phasehas been executed under ESMAP supervision. Systematic peatquality tests showed that complex fluidized bed boilers wouldbe required to use Burundi peat in the industrial sector. Dueto long payback periods and uncertainties with the fluidizedbed technology, ESMAP recommended the discontinuation of thisproject.
Ethiopia
Power System Efficiency Study (ESMAP Report Number 045/85).This report identifies a package of five action programs to reduce powertransmission and distribution losses to economic levels and to improvethe efficiency capacity and availability of generating plant. Theestimated totat cost of the project is US$15.9 million. The first phase,
- 37 -
consisting of institutional strengthening and planning of physicalimprovements, will cost US$3.5 million and last about one year. Thesecond phase, consisting mainly of physical impi-ovements to generationplant, is estimated to cost US$12.4 million.
Current Status: The project is being financed and implementedthrough the IDA Energy I Credit to Ethiopia, with somecofinancing.
Agricultural Residue Briquetting (ESMAP Report Number062/86). This activity: (a) reviewed the technical and economicprospects for collecting presently wasted fuel-quality crop residues onEthiopian State Farms; and (b) designed, costed, and provided biddingdocuments for a series of pilot projects covering the collection anddensification of these residues into fuel briquettes. The total cost was$180,000, of which $92,000 was provided by the Netherlands Government.
Current Status: The report was finalized within the Bank inearly 1986 and the pilot projects were included in the Bank'sEnergy I Credit to Ethiopia which Danida co-financed. TheActivity Completion Report was issued in January, 1987.
Bagasse Energy Survey (ESMAP Report Number 063/86). Thisactivity assessed opportunities for increasing energy efficiency inexisting and planned sugar mills to produce surplus bagasse. It alsoassessed the technical, economic, financial, and institutionalfeasibility of alternative uses for the bagasse, including fibersubstitution in the paper and pulp industry and use by the mills forenergy production.
Current Status: The final report was issued in December, 1986,and presents the results in a form that can be readily used toprepare a project document for potential donors. Financing of
A a pilot plant to evaluate bagasse briquetting is included withDanida co-financing in the Bank's Energy I Credit to Ethiopia.
The Gambia
Solar Photovoltaic Applications Project (ESMAP Report Number03/85). The final report of this pre-feasibility analysis ofphotovoltaic applications in the rural health and telecommunicationssectors was issued in March 1985. The report identified highlyprofitable investments estimated at US$612,000, consisting of US$500,000for hardware procurement and installation, and US$112,000 for technicalassistance.
Current Status: Funds for the implementation of this projectare being provided by the United Nations Capital DevelopmentFund (UNCDF) and the Islamic Development Bank.
- 38 -
Renya
Power System Efficiency Study (ESMAP Report Number 014/84).The objective of this audit was to define short- and medium-term measuresto implement cost effective modifications to system facilities,operations and construction standards that would improve the technicalefficiency of the power system and reduce non-technical losses. Theaudit was conducted by a two-man team which visited Kenya in September1983. The mission identified an $11 million investment and TA packagefor reducing system losses and rehabilitating the Kipevu steam plant.These investments are expected to result in annual benefits of $10.5million.
Current Status: Funding for the implementation of this projectis being provided by a grant from the Canadian InternationalDevelopment Agency.
Malawi
Technical Assistance Package to Improve the Efficiency of Fuel-wood Use in the Tobacco Industry (ESMAP Report Number 009/83). Theobjective of this task was to evaluate the various technical options forimproving the efficiency of wood use in the tobacco curing industry. Thefin&l report defined a US$10 million program to introduce the mosteconomic set of improvements, to be carried out in two phases. Phase Iconsists of a pilot project to install doors, grates, and ventilators in40 low-efficiency barns; setting up an extension, monitoring andevaluation capability for the pilot and subsequent programs; and supportfor further testing of other technical packages. Phase II consists of afull scale program of energy efficiency improvements for the tobaccobarns to be launched over a five-to seven-year period.
Current Status: Phase I of the project, costing $350,000, isbeing implemented with financing under the Bank's SecondTechnical Assistance Credit for Malawi. Phase II also isexpected to be financed by this source.
Panama
Power System Efficiency Study (ESMAP Report Number 004/83).This study identified two projects for immediate implementation:
(a) Distribution System Improvement Programme - comprising theanalysis of all distribution circuits, installation ofcapacitors and reconductoring, etc. The estimated cost of theproject is US$4.5 million.
(b) Rehabilitation of the BLM Oil-fired Generation Plant -comprising replacement of burners, air preheater seals, repairand upgrade instrumentation, controls, insulation and coolingwater system. The estimated cost of the project is US$1.0million. The payback period is less than one year.
- 39 -
Current Status: Some of these measures have been incorporatedin the World Bank's second power distribution loan.
Papua New Guinea
Technical Assistance for Institutional Strengthening (ESMAPReport Number 023/84). This study evaluates the current institutionalframework for national energy planning and coordination and sets forth anumber of organizational and other measures to strengthen thisframework. In support of these measures the report identifies aUS$1.5 million technical assistance package comprising training, equip-ment and the provision of short-and longer-term consultant experts.
Current Status: Funding for the technical assistance andtraining proposals included in this Report is expected to bearranged in the context of a broader Bank-supported publicsector administration review.
Rwanda
Improved Charcoal Stove Strategy (ESMAP Report Number059/86). The objective of this activity was to propose an integratedprogram of action for the design, production, promotion, marketing, anddissemination of improved charcoal stoves in Kigali. To that end, themarket for an improved charcoal stove was tested and a $345,000 phasedprogram of action formulated to establish a self-sustaining system forproducing the stoves and disseminating them throughout the city. Thereport on this activity was published in August 1986.
Current Status: The proposed dissemination program has beenfunded by Dutch and UNDP cofinancing and ESMAP will beexecuting it beginning in May 1987.
Improved Charcoal Production Techniques (ESMAP Report Number065/87). The purpose of this activity was to prepare an action programdelineating: (a) the training and technical support activities necessaryfor charcoal producers to adopt more efficient charcoal conversiontechniques; (b) appropriate government policies to promote the use ofimproved kilns; (c) measures to strengthen the links between theproducers of fuelwood and charcoal; and (d) an analysis of the possibleimpact of using improved charcoal stoves and improved charcoal kilns oncharcoal supply, prices, and the incomes of charcoal makers.
Current Status: The Activity Completion Report, issued inFebruary 1987, described the $300,000 action program indetail. ESMAP will be executing the program, with Dutch andUNDP financing, beginning in April 1987.
The work done under the Activity Completion Report for Rwandawas used as the basis for designing a similar action program in
- 40 -
neighboring Burundi. The project for Burundi will set up aprogram to train traditional charcoalers in improved methods ofcharcoal production. The project will cost $280,000 and isexpected to be executed under an IDA forestry project andsupervised by ESMAP.
Sri Lanka
Power System Efficiency Study (ESMAP Report Number 007/83).This report identified two projects:
(a) Distribution System Rehabilitation Project - the first phase ofthis project would be implemented over three years and wouldinclude the establishment of a Distribution Engineering Depart-ment in the Ceylon Electricity Board (CEB), the engineering andinstallation of about 230 MVAR of capacitors,reconductoring/rebuilding of about 200 km of 33 kV and 11 kVline, and 1,700 km of new line, and the provision of meteringequipment. The estimated cost of Phase I is US$25 million, ofwhich about US$15.5 million would be foreign costs.
(b) Kelanitissa Steam Plant Rehabilitation Project - this projectwould improve the operating efficiency and effective capacityof this 25 MW oil-fired plant. The project would include thereplacement of burners, valves and lines, and therehabilitation of control systems, variable speed fan drivesand the chlorination system. Consultants would be required forthe preparation of detailed designs and possibly for thesupervision of contractors carrying out the rehabilitationwork. The estimated cost of the project is US$1.5 million (ofwhich 90% would be in foreign exchange). The project has apayback period of less than one year.
Current Status: Most of the work proposed here has been fundedunder the Sri Lanka Ninth Power Project.
Sudan
Power System Efficiency Study (ESMAP Report Number 018/84).This report identified a short-term rehabilitation programme of US$3.3million with an economic payback of 1-2 years and recommends additionallonger-term measures costing over US$18 million.
Current Status: Some of the rehabilitation works identified inthe report have been included in the Bank's PowerRehabilitation Project, while others are being implementedunder assistance from USAID.
- 41 -
Thailand
Rural Energy Issues and Options (ESMAP Report Number 044/85).This report was prepared as a companion volume to the main assessmentreport and was discussed with NEA and other Thai agencies during anOctober 1985 workshop on rural energy projects in Thailand. As a resultof discussions held during this visit the Thai Government requested ESMAPassistance in preparing innovative biomass supply and utilizationprograms.
Current Status: The report recommended various technicalassistance activities, including a feasibility study of aforestry/fuelwood project which will serve as a basis forappraisal by interested donors. The study is being financedwith ESMAP core funds and is very close to being completed.Similarly, a charcoal kilns/stoves project is nearingcompletion.
Togo
Nangbeto Reservoir Project (ESMAP Report Number 055/86). Thisstudy was carried out by ESMAP consultants as part of a Bankhydroelectric project for Togo. The objectives of the study were: (a) todefine the optimal means of clearing wood in the catchment area of theNangbeto power plant; (b) to devise an appropriate scheme for the use ofwood cleared, i.e., transportation to Lome, supply to the householdsector, and potential for charcoal production. An Activity CompletionReport was issued in April 1986.
Current Status: The recommendations of the ESMAP study areexpected to be implemented by the Bank under an ongoing powerloan to Togo.
Uganda
Institutional Review of the Energy Sector (ESMAP Report Number029/85). The purpose of this Review was to recommend a set of measuresfor strengthening the Government's planning and policy-formulationcapability, focussing primarily on the establishment and operation of theEnergy Department within the Ministry of Power, Posts andTelecommunications. A report based on the findings of a mission toUganda in June 1984 identified $800,000 in organizational restructuring,staffing, provision of short-term specialists, training and specializedequipment.
Current Status: Some of the main policy recommendations arebeing implemented under the Bank's Power II Project, includingthe establishment of an energy planning capability.
- 42 -
Energy Efficiency in Tobacco Curing Industry (ESMAP ReportNumber 049/86). In December 1984, an ESMAP mission was fielded to reviewthe fuelwood supply and demand situation in Uganda's tobacco curingindustry and to recommend appropriate measures to improve energyefficiency in this rural industrial sector. The mission's findingsreveal that energy efficiency levels in the main tobacco growing areasare extremely low and future tobacco production will be constrained byfuelwood supply. The mission recommended a two-phase program to improvethe energy efficiency which could alleviate the fuelwood shortfallbetween 1987 and 1990 and allow the tobacco industry to maintain at least1984 production levels. Efficiency improvements identified would lead toa 60% reduction in fuelwood consumption at enhanced production levels andwould increase barn output by up to 20%. The mission recommended a pilotdemonstration project costing about $150,000 as well as a nationwidedissemination project costing about $600,000. The final report waspublished in February, 1986.
Current Status: The pilot project has been carried out byBritish American Tobacco (Uganda) Ltd. (BAT) and supervised byESMAP, with funding from the UNDP Country IPF for Uganda. Areconnaissance mission which visited Uganda in August 1986found that the pilot project had already exceeded many of itstargets. A follow-up mission in January 1987 appraised theresults of the pilot project and firmed up plans for thenational dissemination program, which also is being executed byBAT with financing from an ongoing IDA AgriculturalRehabilitation Project. The national dissemination program gotunder way during the 1986-87 curing season.
Fuelwood/Forestry Project Feasibility (ESMAP Report Number053/86). This activity identifies a US$36 million forestry project whichincludes peri-urban fuelwood plantations, rehabilitation of the ForestryDepartment, social forestry programs, improvement of natural forestmanagement, support to wood industries, and improved research. Thepreparation work, costing $300,000, was carried out under ESMAP withfinancial support from CIDA. The final report was published in March,1986.
Current Status: The Bank is executing this project through acombination of funding sources: IDA, Danida, Care, EEC, andlocal funds. The project has been appraised by the Bank andother donors and should be implemented shortly.
- 43 -
V. STATUS OF FUNDING
Since the inception of the Joint Programmes, finance has comefrom both multilateral and bilateral sources. The World Bank, the UNDPInterregional Funds and the UNDP Energy Account have been the mainsources of funding. In the first three years of the AssessmentProgramme, the UNDP Energy Account received contributions for EnergyAssessments from the governments of the Netherlands, Sweden, Australia,Switzerland, Finland, United Kingdom, Norway, Denmark and New Zealand.All of these countries have continued to support the Programmes threughfinancial contributions or the provision of consultancy services orboth. From the beginning of the Joint Programmes the Energy Accountalone has received contributions totaling US$7.5 million. About US$2.5million has also been contributed by the UNDP Country Indicative PlanningFigure (IPF) for particular countries, in addition to an annual transferof US$250,000 to the ESMAP core resources from UNDP's Interregional IPFfor both of the years 1985 and 1986. The balance of contributions hasbeen provided by the combined inputs from main donor agencies and theWorld Bank, bringing the total am-ount contributed to the Programmes since1980 to US$24.0 million.
Division for Global and Energy Strategy andInterregional Projects Preinvestment Divisions
United Nations Development Program Energy DepartmentOne United Nations Plaza World BankNew York, N.Y. 10017 1818 H Street, N.W.U.S.A. Washington, D.C.
U.S.A.