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DUVELOPKT COOPERATION AGENCY AGENCY for INTERNATIONAL DEVELOPIET Washinton,.D

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UNITED STATES INTERNATIOI4M- DUVELOPKT COOPERATION AGENCY AGENCY FOR INTERNATIONAL DEVELOPIET Washinton,.D. C. 20523 NICARAGUA PROJECT PAPn ATLANTIC COAST ELECTRIFICATION AID/LAC/P-704 PROJECT NUMBER: 524-0324 UNCLASSIFIED APPENDIX 3A, ACcachmenc I Chapter 3, Handbook 3 (TM 3:43) AGcY)V rem ITgN.AIONA4O uV,.,L*Pqg [ . T ,A.%$ACT!0N CODE [l--I] A - AMH DOCI14 LN. PROJECT DATA SHEET .ffedoc~t .'umber COOL I c ", COU Y ry 3 a- e # 3 NICARAG"UA . LI P 524-0324 UPOJECTTItIZ -I ' 6 Oc ugm: LAC r-LAG"-"M2"r I- " C AATTARTTFlA.T .FCTRTFTrATTON - f. ?ROJEWT %SSIST.&,CE CONOLTION DATE tPAC.D) EST"ATED DATE OF OIU CATION I (.L,' . 3 .'" [ egw. I . Z.. J .4F C I. COSTS so O .4. E.Q.LI V k£NT $1 I FL'.OG S4'C.CZ .kST LJFE Of ?AOJECT S.FrX ,- Appro;nAted C LXC I T W. I u LFIX . .. c I C)nt5 *' 2,65U _i( .. m _______ I I Other~~~ j ____l TOT,1,1,4 NW [- ..2.....1:.73501-,350 SCHEDL'!LE9.OF. ID FL.'.DING iS0001 P F I .,PPQSE r ,.,O cK COD . 0.OB.IGATIONS TO DAT I E. AL TI.NT.OV..4 -' W:. ' CODE I.Ctf.2. F.WE. Of.. r.OJ4PIOJCT L.a.iu, . 7 2. t i.CI ,. LaU Cmt .aa m DA1 1240 I 5 000 1 5 00 TOTAL$ 10. pLCONDA..f tmIetcrntCAL(dAeman code nCOfrES ove extWh yesn 'oasst4E)110 1 112 1 1uer. 12. SPEC CONC poiesufcetsal S CODA.YPtIMS CODE L NSCODES (,1om ,n c @/j.14 pontw v Wi% .4 adssaial leti ___S__ 15. PROJEC77?%L'R"j6S (dmu,, fn410 CAM Cal) TO assist INE to provide Sufficient, stable and sustainable electric power to meet current and future demand over the next three years in Bluefields and Puerto Cabezas. 14. SCHLED~n. LUqaAMN I SOL'aCIIOlUcN of GOODS A.X4D 3ERVICES A.COVavI I k RRlCod ' n. RT Y ' O Y I& ~ 'I ~:04~ ! I,! T L caA =O theS.cl'py AWLIN .TTS,?NATt' Of OIANCL PROPOSED (Tit m Pqu 1.of a -- p ?P 4mawmuq&) 1-WRaaw I4DATE DOCLIAL's'T XICZED 1,. PPRO~ fl %-4 U____________N AJIn .~OR FOR UDN DOC. By ____ ____ id. Mislion Direlctor ____ ___ 4 'TS, ATI Of O ITR .JLrO Doue Siped D yNdO sN 4TERNACIOAL PARA EL ESARROLL DEVELOPMENT "wAENCIA U S AGENCY FOR INTERNATIONAL ~~~P sa $S0.fD­ * aa Z * - ACA"Ai10 P-SWa %Ca 34f2 ' 224 0 PROJECT AUTHORIZATION Name of country: Nicaragua Project Name of Priject: Atlantic Coast Electrification Number of Project: 524-0324 Assistance Act of 1961, 1. Pursuant to Section 106 of the Foreign the Atlantic Coast Electrification as amended, I hereby authorize Five involving an obligation not to exceed Project for Nicaragua in Grant funds over Million United States Dollars ($5,000,000) obligation through a Project the period from the date of to the Date of August 31, 1994, subject Assistance Completion allotment of funds in accordance with the AID/OYB availability exchange and local currency process, to help in financing foreign costs for the Project. assistance to the GON to develop 2. The Project will provide both and sustainable electric power in sufficient, stable, to the Puerto Cabezas by targeting support Bluefields and system rehabilitation following strategic areas: 1) electrical supplemental generation and and installation to provide to of existing distribution systems renovation and upgrading customers; and 2) service to both existing and potential improve for line construction, line technical assistance and training equipment maintenance, utility administration, maintenance, Association (REA) relations, Rural Electrification customer and collection, and seminars Uniform System of Accounts, billing on productive uses of electricity. be negotiated and executed by The Project Agreement, which may 3. is delegated in accordance the officer to whc.n such authority be and Delegations of Authority, shall with AID Regulations conditions, together to the following essentLal terms and subject as AID may deem appropriate: with such other terms and conditions Services A. Source and Origin of Goods and shall have their financed by AID under the Grant Commodities or in the Cooperating and origin in the United States source American Common Market country, Country or in any other Central agree in writing. Except for ocean except as AID may otherwise shall have suppliers of commodities or services shipping, the American Common which are members of the Central countries or the United States (AID Market, the Cooperating Country, Facsrn:e 75711 Code 000) as their place of nationality, except as AID Geographic by AID may otherwise agree in writing. Ocean shipping financed Grant shall, except as AID may otherwise agree in under the States. writing, be financed only on flag vessels of the United B. Special Covenants INE shall make every effort to ensure that its counterpart contribution is made available in a timely and sati.sfactory fail to make its counterpart contribution manner. Should INE by available in a timely and satisfactory manner as determined AID, AID may suspend Project assistance. J~et C. Bal lantyne Mission Director USAID/Nicaragua Drafted:PDIS:DLieberman: Date: Cleared:PDIS:JCloutier" Date: 7 Vl ARDO:ROwens: Date: n OPP:EGrigsby: Date: .­ LA:MVelazquez: Date: .N4/_l .. OFIN:JAvila: Date: 1, ACO:KBarberi: Date: - ' DDIR:KSchofield: Date: PROJECI' I)SI(N SUMMARY LOGICAL FRAMEWORK Project 111e sad Number Atlantic Coast Elecrirsation (ACE) NARRATIVE SUMMARY OBJECTIVELY MFANS OF IMPORTANT VERIFIA.1LY VE'RIFICATIONS ASSUMIVFIONS INDICATORS Outputs: Continued Outputs Assumptions for achieving Outputs: Institutional D vck)pment Componen,. 1. Economic and financial I. General framework and 1. Project study reports, . INE desirc and/or need rationalization plan methodology developed for INE financial records to reduce subsidies financial operations 2. Improveo institutional 2. Options paper inchiding . Options papei 2. GON cooperation orgunizalin and dccentralizatm on anj/or tariff issue. management plan puivatization for Atlantic Coast 3. Improved consumer 3. Increase in responses to 3. Consumer reports 3. Consumer acceptance of service consumer requests for reduced subsidies assistance, reduce response time 4. Qualified consultants available on a lirnCly basis 5. Participation by INE staff TABLE OF CONTENTS section: EMg~: ABBREVIATIONS AND ACRONYMS GLOSSARY AND EXCHONGE RATE CONTRIBUTORS TO PROJECT DEVELOPMENT I. SUMMARY ............ ......................... 1 A. Background ....... ................ 1 B. Project Problem ............. .............. 1 C. Project Description ....... .................... .2 D. Project Inputs . ............ ... ......2 E. Project Relationship to AID Country Strategy...... 2 F. Project Relationship to Host Country and Other G. Donors.. ....... ................................. 4 G. Conformance with Agency Policies ....................... 4 II. BACKGROUND AND PROJECT RATONALE. ... .......... 5 A. Setting .. o...... ....... .. ......... 5 B. Power Sector on the Atlantic Coast ..... ........... 6 C. Project Problem ........... .................... 7 II. PROJECT DESCRIPTION AND MAJOR OUTPUTS . 9 A. Project Objectives: Goal and Purpose, Beneficiaries . 9 B. Project Components and Major Outputs ..... ........... 9 1. System Rehabilitation and Construction ... ....... 9 a. Generator Plant in Bluefields ..... ........ 9 b. Distribution System in Puerto Cabezas . .. 10 c. System Rehabilitation and Construction Outputs ....... ................. 10 2. Technical Assistance and Training .... ..... 11 a. Generator Operations and Maintenance ........ 11 b. Distribution Operations and Maintenance . 11 c. Utility Management ......... .... 11 d. Training and Technical Assistance Outputs . 11 3. Productive Uses oi Electricity ... ......... 12 4. Institutional Issues and Sustainability . ........ 13 5. On-going System Improvements ... ........... 13 TABLE OF CONTENTS Rection: PAZ&:z C. Project Inputs . 14 1. Financial Inputs a d Level of Effort*. ...... 14 2. Other Inputs . ........ .. ........... 15 3. Host Country Contribution..... .......... 15 D. Disbursement Schedule .. ....... .. ................ 16 IV. IMPLEMENTATION PLAN .................. 17 A. Project Management and Staff ................ 17 B. Methods of Implementation and Financing ........ 17 C. Implementation Schedule .. ................ 19 D. Procurement Plan ....... .................... .. 19 E. Logistical Constraints ...... ................. 20 F. Monitoring, Evaluation and Audit Plan .. ......... 20 G. Workplans and Progress Reports .... .............. ... 22 V........B...... ......... ...... ..... 23 A. Technic'al Analyses of Generation and Distribution Plant ........................ 1. INE Power Plants in Bluefields" . 23 and Puerto Cabezas.... ...... ............23 2. INE Distribution Systems in Bluefields and Puerto Cabezas ....... ...................... ... 26 B. System Dperations and Management .... ............... 28 1. Diesel Plants .............................. 28 2. Distribution Systems ..... .................. 30 3. Utilitylhanagement .... .. ................... 30 C. Productive Uses of Electricity .... ................ 30 1. Assessment of Productive Uses ... .............. 31 2. Demand Management and Energy Conservation .. ..... 31 3. NGO Involvement ....... ..................... 32 4. Productive Uses and Credit.. .. ............ 32 D. Instittkrional Capacities ...... ................ 33 E. Social Impact ...... ....................... 33 F. Economic Aspects ...... ...................... 36 l. Project Investment ................ 36 2. Cost Recovery .... ....................... 37 3. Demand for Electricity ..... ................. 37 4. Power Generation Efficiencies ... .............. 38 5. Efficiencies from improved Distribution ......... 38 6. Demand Management .... .. .................... 39 G. Environmental Issues .... ... ....................
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