An approach to planning and implementing rural energy projects : report on a pilot exercise in Colombia

INTERNATIONAL BANK FOR RECONSTRUCTION AND-FEVELOPm ---------u-------------u----&- - INTERNATIONAL DEVFLOPMEEfl ASSOCIATION ENERGY, WATER AND TELECOMMUNICATION$ DEPARTMENT PUBLIC UTILITIES NOTES AN APPROACH.T O PLANNING AND IMPLEMENTING RURAL ENERGY PROJECTS (REPORT ON A PILOT EXERCISE I N COLOMBIA) January 1 7 , 1978 Central Projects Staff Energy, Water and Telecounnunications Department This paper i s one of a s e r i e s i s s u e d by t h e Energy, Water and Telecormnunications Department f o r t h e information and guidance of Bank st.aff working i n t h e power, water and wastes, and telecormnunications s e c t o r s . It may n o t be published o r quoted a s r e p r e s e n t i n g t h e views of t h e Bank Group, and t h e Bank Group does not accept r e s p o n s i b i l i t y f o r i t s accuracy and completeness. + .- A  ABSTRACT Adequate supply of r u r a l energy i s being recognized a s a major development problem. Non-commercial f u e l s such as fuelwood, a g r i c u l t u r a l w a s t e and animal dung a r e now o f t e n t h e o n l y energy s o u r c e s a v a i l a b l e i n r u r a l a r e a s and a r e becoming i n c r e a s i n g l y i n s u f f i c i e n t t o meet r i s i n g r u r a l energy demand f a r b a s i c needs as w e l l as p r o d u c t i o n a c t i v i t i e s . Moreover, l a r g e s c a l e r u r a l u s e of t h e s e f u e l s i s c a u s i n g widespread d e f o r e s t a t i o n and s o i l e r o s i o n . A R u r a l Energy P l a n n i n g E x e r c i s e was i n i t i a t e d i n Colombia i n May 1977. Our o b j e c t i v e was t o develop a p r a c t i c a l approach f o r i d e n t i f y i n g , p r e p a r i n g and implementing r u r a l energy p r o j e c t s and programs. The f i r s t phase involved q u a l i t a t i v e s t u d i e s i n s e l e c t e d r u r a l a r e a s t o d e f i n e t h e r e l a t i o n s h i p between energy and r u r a l development. The second phase i n v o l v e s t h e d e t a i l e d p r e p a r a t i o n of r u r a l energy p l a n s , development and t e s t i n g of r u r a l energy equipment, and implementation of p i l o t p r o j e c t s i n s e l e c t e d r u r a l a r e a s t o t e s t t h e i n s t i t u t i o n a l and i n f r a s t r u c t u r e r e q u i r e m e n t s f o r a l a r g e s c a l e r u r a l energy p r o j e c t s . A fundamental a s p e c t of t h i s approach is t o r e l y a l m o s t completely i n l o c a l e x p e r t i s e and i n s t i t u t i o n s f o r t h e d e s i g n and e x e c u t i o n of t h e s e p r o j e c t s and most of t h e work h e r e d e s c r i b e d h a s i n f a c t been c a r r i e d o u t by t h e Colombians. T h i s r e p o r t d i s c u s s e s t h e Bank's r o l e s o f a r , and proposes d i r e c t i o n s f o r Euture work; though i t d e a l s w i t h t h e s p e c i f i c c a s e of Colombia, i t p r o v i d e s a n approach a p p l i c a b l e i n most o t h e r LDCs. The f i r s t p a r t of t h e r e p o r t ( S e c t i o n s I t o V I , 11 pages) o u t l i n e s t h e approach t h a t have been developed. The second p a r t ( S e c t i o n V I I , 4 1 pages) c o n s i s t s of s e v e r a l Annexes and d e a l s i n g r e a t e r d e t a i l w i t h t h e s p e c i f i c a c t i v i t i e s c a r r i e d o u t i n Colombia. P r e p a r e d by: S. K. Chopra J a n u a r y 1978  . . I. SUMMARY ...................................... i - iii 11. RURAL ENERGY PLANNING APPROACH ................ 1 111. SELECTION OF THE COUNTRY ...................... 4 IV. ORGANIZATION OF THE MERCISE ...-. ....,........a 5 V. CONCLUSION: LESSONS F ROM PHASE I ............. 7 VI. RECOMMENDATIONS FOR PHASE I1 .................. 9 VII. ANNEXES (i) Mission Reports (ii) Local I n s t i t u t i o n a l Capabilities (iii) Recommendations f o r a c t i v i t i e s i n P h a s e I1 (iv) F o r m a t i o n of a R u r a l Energy Group i n A n t i o q u i a i n P h a s e I1 (v) F o r m a t s f o r S u r v e y s i n P h a s e I1 (vi) Bibliography  I. SUMMARY i. R u r a l Energy h a s become a major development problem s i n c e t h e o i l c r i s i s . L a r g e s c a l e , i n d i s c r i m i n a t e u s e of non-commercial f u e l s such a s fuelwood a g r i c u l t u r a l w a s t e and a n i m a l dung, which a r e more o f t e n t h e only energy r e s o u r c e s a v a i l a b l e i n r u r a l a r e a s , i s c a u s i n g widespread d e f o r e s t a t i o n and s o i l e r o s i o n . L/ Moreover, r u r a l energy demand i s r a p i d l y r i s i n g b o t h due t o i n c r e a s e s i n r u r a l p o p u l a t i o n , and due t o growing c o n s c i o u s n e s s of t h e r u r a l p o p u l a t i o n f o r a b e t t e r q u a l i t y of l i f e . ii. Planned i n p u t s of energy s u p p l i e s are t h e r e f o r e u r g e n t l y r e q u i r e d t o m e e t t h e r i s i n g r u r a l energy demand. While c o n s i d e r a b l e work is b e i n g done i n d e v e l o p i n g new energy r e s o u r c e s and t e c h n o l o g i e s f o r r u r a l a r e a s i n many c o u n t r i e s , t h e r e does n o t seem t o b e a s y e t a v a i l a b l e a p r a c t i c a l p l a n n i n g approach t h a t w i l l p r o v i d e t h e b a s i s f o r p r e p a r i n g r u r a l energy p l a n s , i n v o l v i n g t h e l e a s t - c o s t mix of new and e x i s t i n g energy r e s o u r c e s , t o meet d i f f e r e n t t y p e s of r u r a l energy demand f o r d o m e s t i c consumption and p r o d u c t i o n , over a s e l e c t e d planning horizon. These r u r a l energy p l a n s a r e n e c e s s a r y t o i d e n t i f y , p r e p a r e , and implement bankable r u r a l energy p r o j e c t s and programs which would b r i n g energy r e s o u r c e s t o l a r g e masses of r u r a l p o p u l a t i o n . iii. A R u r a l Energy P l a n n i n g Approach i s p r e s e n t e d i n t h i s r e p o r t . The p r a c t i c a l worth of t h i s approach i s b e i n g t e s t e d i n Colombia, as p a r t of a R u r a l Energy P l a n n i n g E x e r c i s e conducted by Colombian p r o f e s s i o n a l s w i t h Bank's t e c h n i c a l a s s i s t a n c e . The E x e r c i s e h a s been o r g a n i z e d i n two phases: Phase I i n v o l v e s a q u a l i t a t i v e a s s e s s m e n t of t h e o v e r a l l r u r a l energy problem i n Colombia w i t h a c a s e s t u d y of a r u r a l r e g i o n t o d e t e r m i n e r e l a t i o n s h i p between energy and r u r a l development. Phase 1 1 i n v o l v e s q u a n t i t a t i v e work f o r d e v e l o p i n g a r u r a l energy p l a n n i n g methodology, p r e p a r a t i o n of r e g i o n a l and n a t i o n a l r u r a l energy p l a n s on t h e b a s i s of t h i s methodology, and o r g a n i z i n g p i l o t p r o j e c t s i n s e l e c t e d a r e a s a s p r e p a r a t i o n f o r r e g u l a r r u r a l energy p r o j e c t s . iv . A R u r a l Energy Group c o n s i s t i n g of Colombian P r o f e s s i o n a l s from I C A , ICEL, DNP and D R I L/ was formed t o work w i t h t h e Bank d u r i n g P h a s e I. The Group conducted a case-study i n O r i e n t e r e g i o n i n A n t i o q u i a , w i t h Bank's t e c h n i c a l a s s i s t a n c e , t o s t u d y t h e r e l a t i o n s h i p between energy and r u r a l development. During t h i s s t u d y f a r m e r s i n d i f f e r e n t a r e a s of t h e r e g i o n were i n t e r v i e w e d t o a s s e s s e x i s t i n g p a t t e r n s of energy consumption and f a r m e r s ' - 1/ See, f o r example, Eckholm E . , T h e Other Energy C r i s i s : Fuelwood, Worldwatch paper No. 1, Sept. 1975. Also: P r o c e e d i n g s of t h e UN Conference on D e s e r t i f i c a t i o n , N a i r o b i , August 1977. - 2/ ICA - I n s t i t u t o Colombiano A g r o p e c u a r i o ICEL - I n s t i t u t o Colombiano E n e r g i a E l e c t r i c a DNP - Departamento N a c i o n a l P l a n e a c i o n DRI - Desarrollo Rural Integrado p e r c e p t i o n of t h e r u r a l energy problem. Also, a survey of e x i s t i n g i n s t i - t u t i o n s was conducted t o a s s e s s l o c a l c a p a b i l i t i e s f o r t a c k l i n g d i f f e r e n t a s p e c t s of t h e rural energy problem. V. P h a s e I was i n i t i a t e d a t t h e end of May 1977, and i s n w substan- t i a l l y complete w i t h t h e p r e p a r a t i o n of a n in-depth, well-documented r e p o r t by t h e Colombian R u r a l Energy Group. 1 / T h i s p h a s e i n v o l v e d t h r e e Bank m i s s i o n s i n May, August and O c t o b e r , 1977. vi . Major l e s s o n s l e a r n t d u r i n g t h i s P h a s e I , r e g a r d i n g t h e f e a s i b i l i t y a n d i m p l e m e n t a t i o n of t h e R u r a l Energy P l a n n i n g Approach, were: ( a ) Energy i n r u r a l a r e a s i s a n i n t e g r a l p a r t of a l l a s p e c t s of r u r a l development, i n c l u d i n g i r r i g a t i o n , m e c h a n i z a t i o n , a g r o - i n d u s t r i e s , a v a i l a b i l i t y of r u r a l i n f r a s t r u c - t u r e and s e r v i c e s ; ( b ) R u r a l energy p l a n n i n g t h e r e f o r e r e q u i r e s a n in-depth u n d e r s t a n d i n g of t h e o v e r a l l r u r a l s i t u a t i o n , and i t s r e l a t i o n t o t h e needs, p r i o r i t i e s and a s p i r a t i o n s of r u r a l communities; ( c ) Thus, r u r a l energy p l a n s must be developed on a d e c e n t r a l i z e d r e g i o n a l b a s i s by r e p i o n a l l o c a l p r o f e s - s i o n a l s who l i v e i n t h e r e g i o n and work c l o s e l y w i t h t h e i r rural communities; ( d ) L o c a l p r o f e s s i o n a l c a p a b i l i t i e s i n r e g i o n a l p r i v a t e and government i n s t i - t u t i o n s and u n i v e r s i t i e s must t h e r e f o r e b e m o b i l i z e d and t r a i n e d t o form r e g i o n a l groups f o r c o n d u c t i n g t h e rural energy p l a n n i n g e x e r c i s e ; (f) For t h i s purpose, a government s e t - u p i s r e q u i r e d , t h a t c o u l d o r g a n i z e t h e s e g r o u p s , and c o o r d i n a t e a l l rural energy a c t i v i t i e s i n t h e c o u n t r y . vii. Based on t h e l e s s o n s from P h a s e I , i t i s recommended 2 1 t h a t Phase I1 s h o u l d be e x e c u t e d by a permanent R u r a l Energy U n i t which s h o u l d c o n s i s t of e x p e r i e n c e d p r o f e s s i o n a l s . The U n i t s h o u l d work under t h e d i r e c t i o n of a M i n i s t e r i a l R u r a l Energy C o o r d i n a t i o n Committee and o r g a n i z e , g u i d e and t r a i n r e g i o n a l rural energy groups. T h e s e groups would p r e p a r e r e g i o n a l r u r a l energy p l a n s w i t h t h e p a r t i c i p a t i o n of l o c a l communities. The U n i t would a l s o o r g a n i z e development and t e s t i n g of equipment, 21 t r a i n i n g programs f o r p r o f e s s i o n a l s , and p i l o t p r o j e c t s f o r t e s t i n g i n s t i t u t i o n a l and i n f r a s t r u c t u r e r e q u i r e m e n t s f o r f u l l s c a l e r u r a l energy p r o j e c t s . viii. P h a s e I1 i s e x p e c t e d t o r e s u l t i n p r e p a r a t i o n of a r u r a l energy p l a n f o r Colombia, i n v o l v i n g r u r a l energy p r o j e c t s i n i t i a l l y i n D R I 5 1 regions. T h i s P h a s e i s e x p e c t e d t o e x t e n d f o r about one-and-a-half t o two y e a r s and 11 - T h i s i s a 180-page r e p o r t e n t i t l e d : "Enernia R u r a l , Informe d e l Grupo d e E n e r g i a e n Areas D R I ( E l Caso d e l a r e g i o n d e l O r i e n t e Antioqueno) p r e p a r e d i n Bogota i n December 1977. - 21 T h e s e recommendations a r e d e r i v e d f r o m t h e Colombian R u r a l Energy Group r e p o r t , b u t have been f u r t h e r developed i n t h i s r e p o r t . - 31 These equipment i n c l u d e , among o t h e r s , m i c r o h y d r o t u r b i n e s , s o l a r h e a t e r s , w i n d m i l l s , b i o g a s p l a n t s , wood, k e r o s e n e , g a s and c o a l s t o v e s , s m a l l ref r i g e r a t o r s . - 41 D R I r e g i o n s are t h o s e c o v e r e d by Government N a t i o n a l R u r a l Development Program. I n t h e i n i t i a l phase, t h i s program i s l o c a l i z e d i n f i v e areas i n Western Colombia. Three of t h e s e f i v e a r e a s a r e covered by Bank's I n t e g r a t e d R u r a l Development. should l e a d t o a t h i r d o p e r a t i o n a l phase (Phase I I I ) , i n v o l v i n g implementation of t h e n a t i o n a l r u r a l e n e r g y program, which t h e Bank may s u p p o r t . However Bank r o l e , as a development agency, would b e c r u c i a l d u r i n g P h a s e 11, when t h e f o u n d a t i o n of t h e program w i l l b e b u i l t , a n d problems i n d e v e l o p i n g l o c a l c a p a b i l i t i e s must be t a c k l e d . ix. Bank involvement, f o r example, c o u l d e n s u r e h i g h l e v e l o f f i c i a l s u p p o r t v i t a l i n t h e f o r m a t i v e s t a g e s of t h e program. Bank c o u l d assist i n i d e n t i f y i n g , t r a i n i n g and motivating s u i t a b l e professionals. Bank c o u l d a r r a n g e a p p r o p r i a t e t e c h n i c a l a n d f i n a n c i a l a s s i s t a n c e when r e q u i r e d . Finally, Bank c o u l d a s s i s t i n c o o r d i n a t i n g v a r i o u s i n s t i t u t i o n s , p r o f e s s i o n a l s and o f f i c i a l s i n v o l v e d a t d i f f e r e n t l e v e l s of t h e e x e r c i s e , and, i n t h e p r o c e s s , s a f e g u a r d t h e i n t e r e s t s of t h e r u r a l p o o r , t o whose w e l f a r e b o t h t h e Colombian Government and t h e Bank are committed. x. R e s o u r c e r e q u i r e m e n t s i n P h a s e 11, i n c l u d i n g p o s s i b l e Bank's a s s i s t a n c e i n q u a n t i t a t i v e terms and s c o p e f o r P h a s e 111, w i l l b e d e t e r m i n e d , s u b j e c t t o Colombian Government's i n t e r e s t , i n c o n j u n c t i o n w i t h Colombian s t a f f . The p u r p o s e of t h i s r e p o r t i s t o p r o v i d e a comprehensive a c c o u n t of Bank r o l e s o f a r , a n d p r o p o s e d i r e c t i o n s f o r f u t u r e work. xi. The r e p o r t i s o r g a n i z e d as f o l l o w : S e c t i o n I1 p r e s e n t s t h e R u r a l Energy P l a n n i n g Approach; S e c t i o n 1 1 1 explains t h e reasons f o r s e l e c t i n g Colombia; S e c t i o n I V d i s c u s s e s t h e o r g a n i z a t i o n of t h e e x e r c i s e ; S e c t i o n V draws c o n c l u s i o n s from P h a s e I; a n d S e c t i o n V I o f f e r s recommendations f o r f u r t h e r work i n P h a s e 1 1. The Annexes c o n t a i n r e p o r t s of Bank m i s s i o n s d u r i n g P h a s e I , a n e v a l u a t i o n of Colombian i n s t i t u t i o n a l c a p a b i l i t i e s r e l a t e d t o r u r a l energy a c t i v i t i e s , a d i s c u s s i o n of proposed P h a s e I1 a c t i v i t i e s , a n d a bibliography.  11. RURAL ENERGY PLANNING APPROACH 1. S i n c e t h e o i l c r i s i s , t h e Bank i s becoming i n c r e a s i n g l y i n v o l v e d i n energy p l a n n i n g of d e v e l o p i n g c o u n t r i e s . Bank energy s e c t o r a c t i v i t i e s have, up t o now, been mainly con£ i n e d t o commercial energy r e s o u r c e s . A v a s t m a j o r i t y of some 2.20 b i l l i o n p e o p l e who comprise t h e r u r a l s e c t o r i n devel- o p i n g c o u n t r i e s , however, c o n t i n u e t o s u b s i s t on non-commercial energy r e s o u r c e s such a s a g r i c u l t u r a l w a s t e s , firewood, c h a r c o a l and dung. 1 1 The f o c u s on commercial energy i n many d e v e l o p i n g c o u n t r i e s t h u s o f t e n d i s r e g a r d s energy r e q u i r e m e n t s f o r t h e economic and s o c i a l development of a major propor- t i o n of t h e i r p o p u l a t i o n s . 2. The need f o r examining r u r a l energy ,requirements h a s become espe- c i a l l y s i g n i f i c a n t f o r t h e Bank b e c a u s e of t h e l e a d i n g r o l e i t i s p l a y i n g i n r u r a l development. Many r e c e n t Bank R u r a l Development P r o j e c t s , i n f a c t , i n c l u d e components on r u r a l e l e c t r i f i c a t i o n and fuelwood: 21 But no a t t e m p t seems t o have, as y e t , been made t o d e t e r m i n e t h e r e l a t i o n s h i p of t h e s e components t o t h e r u r a l r e g i o n ' s o v e r a l l energy s e t t i n g , i n v o l v i n g e x i s t i n g and p r o j e c t e d demand f o r domestic and p r o d u c t i v e a c t i v i t i e s , o t h e r renewable and non-renewable energy r e s o u r c e s such a s kerosene, bio-mass, s o l a r and wind, and t h e t e c h n i c a l , economic, i n s t i t u t i o n a l and s o c i a l c o n s t r a i n t s i n c o n v e r t i n g v a r i o u s energy r e s o u r c e s t o meet demand over a s p e c i f i c p l a n n i n g horizon. 3. I n t h e absence of such comprehensive energy p l a n n i n g f o r t h e r u r a l s e c t o r , i t i s d i f f i c u l t t o d e t e r m i n e t h e e x t e n t t o which i s o l a t e d p r o j e c t s , o r p r o j e c t components, on r u r a l e l e c t r i f i c a t i o n , fuelwood, o r o t h e r r e s o u r c e s , w i l l meet energy needs f o r r u r a l development. Moreover, w i t h o u t a s y s t e m a t i c a n a l y s i s of r u r a l e n e r g y , a s a p a r t of n a t i o n a l p l a n n i n g , i t w i l l n o t be p o s s i b l e t o e s t a b l i s h t h e l e a s t - c o s t energy s o l u t i o n , t h a t w i l l u s u a l l y i n v o l v e a mix of non-commercial and commercial r e s o u r c e s , depending on t h e demand and c o n s t r a i n t s e x i s t i n g a t d i f f e r e n t p h a s e s of t h e r u r a l development process. 4. Although many s t u d i e s on r u r a l energy have been conducted, 2 1 they a r e e i t h e r t o o q u a l i t a t i v e , o r f o c u s on a l i m i t e d a s p e c t of t h e problem, such a s development of a l t e r n a t i v e t e c h n o l o g i e s f o r renewable energy r e s o u r c e s , o r r u r a l e l e c t r i f i c a t i o n , o r f o r e s t r y , w i t h o u t a d o p t i n g t h e comprehensive approach o u t l i n e d above. T h e s e s t u d i e s , however, a r e very u s e f u l because they p r o v i d e - 11 The non-commercial energy consumption a s a p e r c e n t a g e of t o t a l energy consumption, f o r example, i s 45% i n South America, 51% i n A f r i c a and 58% i n A s i a (Source: J o e l D a m s t a d t e r , Energy i n t h e World Economy, John Hopkins, 1 9 7 1 ) . - 21 The r e c e n t Bank I n t e g r a t e d R u r a l Development P r o j e c t i n Colombia i n c l u d e s r u r a l e l e c t r i f i c a t i o n and fuelwood components. - 31 See Annex 6. t h e b a s i c d a t a on v a r i o u s f a c e t s of t h e r u r a l energy problem. The n e x t s t e p , t h e r e f o r e , i s t o i n t e g r a t e a v a i l a b l e i n f o r m a t i o n , and i d e n t i f y p r a c t i c a l m e a s u r e s , a t t h e p o l i c y and o p e r a t i o n a l l e v e l s , t h a t w i l l p r o v i d e g u i d e l i n e s f o r b a n k a b l e r u r a l energy p r o j e c t s and programs. For t h i s purpose, i t i s p r o p o s e d t h a t a p r a c t i c a l e x e r c i s e i n r u r a l e n e r g y p o l i c y and p r o j e c t s p l a n n i n g b e c o n d u c t e d i n a s e l e c t e d d e v e l o p i n g c o u n t r y ' i n which t h e Bank h a s ongoing R u r a l Development p r o j e c t s . 5. The p r o p o s e d e x e r c i s e s h o u l d c o n s i s t of t h e f o l l o w i n g s t e p s : Region S e l e c t i o n (i) S e l e c t a r e g i o d r e g i o n s w i t h ongoing r u r a l development p r o j e c t s . D e t e r m i n e t h e economic s t r u c t u r e of t h e r e g i o n and i t s r e l a t i o n s h i p w i t h t h e rest of t h e economy. Choose a p l a n n i n g h o r i z o n c o n s i s t e n t with t h e n a t i o n a l planning process. Energy Demand (ii) Determine e x i s t i n g e n e r g y u s e f o r v a r i o u s a c t i v i t i e s i n a g r i c u l t u r a l p r o d u c t i o n , d o m e s t i c , t r a n s p o r t a t i o n , agro- b u s i n e s s and community s u b - s e c t o r s of t h e r u r a l r e g i o n . P r o j e c t e n e r g y demand f o r s u b s i s t e n c e - l e v e l needs and f o r economic and s o c i a l development o v e r t h e p l a n n i n g h o r i z o n by: ( a ) macroeconomic i n d i c a t o r s such a s i n c o m e - e l a s t i c i t y , p r i c e - e l a s t i c i t y , end-use of f u e l t r e n d s and ( b ) microeconomic analyses involving household surveys. Energy Supply (iii) Compile i n f o r m a t i o n on energy r e s o u r c e s u s e d i n t h e e x i s t i n g s e t u p t o meet v a r i o u s demands. Most of t h e s e r e s o u r c e s w i l l b e t y p i c a l l y non-commercial. D e t e r m i n e t h e a v a i l a b i l i t y of non-commercial r e s o u r c e s , f o r m e e t i n g p r o j e c t e d demand o v e r t h e p l a n n i n g h o r i z o n . D e t e r m i n e a v a i l a b i l i t y of o t h e r e n e r g y r e s o u r c e s , b o t h w i t h i n t h e r e g i o n , and t h o s e i m p o r t e d f r o m o t h e r p a r t s of t h e c o u n t r y o r a b r o a d , o v e r t h e p l a n n i n g h o r i z o n . Energy C o n v e r s i o n (iv) Determine t h e a v a i l a b i l i t y of a p p r o p r i a t e t e c h n o l o g y a t d i f f e r e n t p e r i o d s i n t h e p l a n n i n g h o r i z o n , f o r c o n v e r t i n g a v a i l a b l e renew- a b l e and non-renewable energy r e s o u r c e s t o meet e x i s t i n g and p r o j e c t e d demand. D e t e r m i n e t h e c o n v e r s i o n e f f i c i e n c i e s , a n d t e c h n i c a l c h a r a c t e r i s t i c s of t h e s e t e c h n o l o g i e s . I d e n t i f y tech- n i c a l , economic, i n s t i t u t i o n a l and s o c i a l c o n s t r a i n t s f o r each alternative.  Energy P r i c i n g (v) Determine t h e d e l i v e r e d c o s t f o r e a c h energy a l t e r n a t i v e ( c o s t of p r o d u c t i o n p l u s c o s t o f t r a n s p o r t a t i o n and d i s t r i b u - t i o n ) . Determine t h e f i n a n c i a l and s o c i a l c o s t s f o r each a l t e r n a t i v e ( a ) t o t h e u s e r , ( b ) t o t h e r e g i o n , and ( c ) t o t h e economy, a t v a r i o u s phases i n t h e p l a n n i n g horizon. Energy P l a n (vi) Based on t h e above i n f o r m a t i o n , p r o p o s e a n energy p l a n f o r t h e r e g i o n , c o n s i s t e n t w i t h t h e r u r a l development p l a n , and n a t i o n a l energy and economic p o l i c i e s . Energy P r o j e c t s (vii) I d e n t i f y energy p r o j e c t s f o r t h e r e g i o n on t h e b a s i s of t h e energy plan. Determine t h e l e a s t - c o s t mix o f e n e r g y p r o j e c t s a t v a r i o u s phases i n t h e p l a n n i n g h o r i z o n t o m e e t d i f f e r e n t t y p e s of demand from a v a i l a b l e and new s u p p l y r e s o u r c e s w i t h i n t h e g i v e n constraints. 6. T h i s e x e r c i s e w i l l p r o v i d e a n i n s i g h t i n t o t h e p r a c t i c a l problems i n v o l v e d i n r u r a l energy p l a n n i n g . The e x p e r i e n c e g a i n e d from t h e e x e r c i s e w i l l be u t i l i z e d i n d e v e l o p i n g g u i d e l i n e s f o r f u t u r e p o s s i b l e r u r a l energy p r o j e c t s and programs, which t h e Bank may s u p p o r t .  111. SELECTION OF THE COUNTRY 7. Colombia was s e l e c t e d f o r t e s t i n g t h e R u r a l Energy P l a n n i n g Approach f o r t h e following reasons: ( a ) Colombia h a s a s i z e a b l e r u r a l s e c t o r t h a t makes up a b o u t 40% of t h e t o t a l p o p u l a t i o n and 30% of t h e GDP. (b) The Government is committed t o r u r a l development, and h a s l a u n c h e d a R u r a l Development Program (DRI) which a i m s e s p e c i a l l y a t removing c o n s t r a i n t s f a c e d by small f a r m e r s . The Bank i s s u p p o r t i n g o n e of t h e t h r e e R u r a l Development P r o j e c t s managed by t h e D R I program. (The o t h e r two p r o j e c t s a r e s u p p o r t e d by CLDA and I D B . ) The Bank i s a l s o c l o s e l y i n v o l v e d i n Colombia's energy s e c t o r t h r o u g h f i n a n c i n g of power p r o j e c t s and e n e r g y s e c t o r s t u d i e s . (c) The main commercial energy r e s o u r c e i n r u r a l a r e a s i s e l e c t r i c a l energy. However, e l e c t r i c i t y i s u t i l i z e d by some 15 t o 20% o f t h e r u r a l population. The remaining p o p u l a t i o n m ust r e l y on non- commercial s o u r c e s s u c h a s : wood, c a n d l e s , a g r i c u l t u r a l waste and, i n some i n s t a n c e s , c o a l , k e r o s e n e , e t c . These energy r e s o u r c e s a r e mainly used f o r d o m e s t i c consumption s u c h a s cooking and l i g h t i n g . O t h e r a g r i c u l t u r a l t a s k s ( f o r example, c u l t i v a t i o n , i r r i g a t i o n , h a r v e s t i n g , e t c . ) a r e u s u a l l y done manually by small farmers . (d) Colombia h a s abundant s u p p l y of u n d e r u t i l i z e d energy r e s o u r c e s s u c h a s hydro, g a s and c o a l t h a t c o u l d be used i n r u r a l a r e a s . F o r example, o u t o f a hydro p o t e n t i a l of 100,000 MW, o n l y about 3% i s b e i n g c u r r e n t l y u t i l i z e d . I n t h i s c o n t e x t , some Colombian i n s t i t u t i o n s (Las G a v i o t a s and t h e U n i v e r s i t y of Los Andes) have developed small h y d r o e l e c t r i c schemes ( 5 0 kw c a p a c i t y , approximate c o s t 15,000 pesos/kw) t h a t c o u l d have w i d e s p r e a d a p p l i c a t i o n , a f t e r s u i t a b l e m o d i f i c a t i o n s , i n d i f f e r e n t r u r a l r e g i o n s of t h e c o u n t r y . O t h e r equipment s u c h as s o l a r h e a t e r s , w i n d m i l l s , r e f r i g e r a t o r s have a l s o been l o c a l l y developed. (e) Thus, b o t h m a t e r i a l and human r e s o u r c e s , i n c l u d i n g p r o f e s s i o n a l c a p a b i l i t i e s , e x i s t i n t h e country. But a p l a n n e d approach f o r u t i l i z i n g and o r g a n i z i n g t h e s e r e s o u r c e s t o b r i n g e f f i c i e n t energy i n p u t s w i t h i n t h e r e a c h o f l a r g e masses o f r u r a l p o p u l a t i o n seemed t o be l a c k i n g . 8. . The Bank o f f e r e d t o a s s i s t t h e Colombian Government i n d e v e l o p i n g a p l a n n i n g approach, a l o n g t h e l i n e s d e s c r i b e d above, t h a t c o u l d be used f o r p r e p a r i n g r u r a l e n e r g y p r o j e c t s and programs. The t h e n Colombian M i n i s t e r of Energy e x p r e s s e d e n t h u s i a s m a t t h e i d e a , and a R u r a l Energy P l a n n i n g E x e r c i s e was i n i t i a t e d i n May 1977.  IV. ORGANIZATION OF THE EXERCISE 9. Although t h e f o r m a l a p p r o v a l of Colombia's M i n i s t r y of Energy w a s o b t a i n e d f o r conducting t h e r u r a l energy p l a n n i n g e x e r c i s e , i t w a s recognized from t h e s t a r t t h a t a p r a c t i c a l r u r a l energy p l a n n i n g approach c o u l d be developed o n l y i f i t e v o l v e s from w i t h i n Colombia, t h a t is, i t i s i n i t i a t e d , o r g a n i z e d and developed by Colombian p r o f e s s i o n a l s who work i n c l o s e c o n t a c t w i t h t h e i r r u r a l people. The Bank's r o l e would be l i m i t e d t o t h a t of a c a t a l y s t f o r l o c a t i n g t h e r i g h t i n s t i t u t i o n s and p r o f e s s i o n a l s , and p r o v i d i n g them w i t h t e c h n i c a l a s s i s t a n c e i n o r g a n i z i n g t h e e x e r c i s e , i n v e s t i g a t i n g t h e problem and f o r m u l a t i n g t h e i r own s y s t e m a t i c s t r a t e g y f o r t a c k l i n g i t . 10. I n keeping w i t h t h e above approach, i t was d e c i d e d , a f t e r d i s c u s s i o n s w i t h Colombian o f f i c i a l s d u r i n g t h e f i r s t m i s s i o n , t h a t t h e e x e r c i s e w i l l be o r g a n i z e d i n two phases: - During Phase I, a R u r a l Energy Group w i l l be s e t up, c o n s i s t i n g of p r o f e s s i o n a l s from DNA, D R I , I C A and ICEL, which w i l l , w i t h Bank t e c h n i c a l a s s i s t a n c e , s t u d y t h e o v e r a l l r u r a l energy problem i n Colombia and conduct a c a s e s t u d y i n a r u r a l r e g i o n i n A n t i o q u i a t o d e t e r m i n e r e l a t i o n s h i p between energy and r u r a l development. - During Phase 11, a permanent R u r a l Energy U n i t w i l l be formed t o c a r r y o u t d e t a i l e d q u a n t i t a t i v e work r e q u i r e d f o r f o r m u l a t i n g r u r a l energy p l a n s f o r d i f f e r e n t r e g i o n s . The U n i t would a l s o o r g a n i z e and promote indigenous r e s e a r c h , development and produc- t i o n of energy hardware, t r a i n i n g programs f o r l o c a l p r o f e s s i o n a l s f o r r u r a l energy a c t i v i t i e s and e v e n t u a l l y p r e p a r e r u r a l energy projects. However, t h e Unit's t a s k s w i l l be d e f i n e d i n more d e t a i l a t t h e end of Phase I. 11. Phase I c o n s i s t e d of t h r e e Bank m i s s i o n s i n v o l v i n g t h e f o l l o w i n g tasks : Mission I (May 2 3 t o 30, 1977) D i s c u s s i o n s w i t h o f f i c i a l s and i n s t i t u t i o n s r e g a r d i n g (i) t h e f e a s i b i l i t y of t h e r u r a l energy p l a n n i n g approach, and ( i i ) t h e o r g a n i z a t i o n of t h e e x e r c i s e . Mission 11 (August 8 t o 12, 1977) Formation of a R u r a l Energy Group c o n s i s t i n g of p r o f e s s i o n a l s from ICA, ICEL, D R I and DNP. V i s i t t o a r u r a l area i n Area 3 ( A n t i o q u i a ) t o d i s c u s s t h e e x e r c i s e w i t h r e g i o n a l s t a f f of ICA, DRI and E l e c t r i f i c a d o r a s , and o b t a i n f i r s t - h a n d account of t h e r u r a l energy s i t u a t i o n from f a r m e r s and members of t h e r u r a l community.  Mission I11 (October 2 t o 18, 1977) I n v e s t i g a t i v e s u r v e y w i t h t h e Group i n O r i e n t e r e g i o n of Area 3 t o d e t e r m i n e q u a l i t a t i v e r e l a t i o n s h i p between energy and r u r a l devel- opment. Study of o v e r a l l r u r a l energy s e t t i n g , i n c l u d i n g i n s t i t u - t i o n a l and t e c h n i c a l c a p a b i l i t i e s , i n Colombia. I n i t i a t i n g a R u r a l Energy Report t o be prepared by t h e Group. Mission r e p o r t s a r e g i v e n i n Annex 1. 12. Phase I i s now s u b s t a n t i a l l y complete w i t h t h e p r e p a r a t i o n of a r e p o r t by t h e Colombian R u r a l Energy Group. Lessons l e a r n e d from t h i s phase, and d i r e c t i o n s f o r Phase 11 t a s k s , a r e given i n t h e following sections.  V. CONCLUSION: LESSONS FROM PHASE I 13. A d e t a i l e d d i s c u s s i o n of t h e t a s k s i n P h a s e I i s g i v e n i n Annex 1 ( m i s s i o n r e p o r t s ) a n d i n t h e r e p o r t p r e p a r e d by t h e Colombian R u r a l Energy Group. Given below a r e t h e main l e s s o n s l e a r n t d u r i n g P h a s e I, t h a t a r e r e l a t e d t o t h e f e a s i b i l i t y and implementation of t h e r u r a l energy p l a n n i n g approach and t h e o r g a n i z a t i o n of P h a s e 11. - During t h e v i s i t t o r u r a l a r e a s , and t h e O r i e n t e s u r v e y , i t was found t h a t r u r a l p e o p l e would become i n v o l v e d i n r u r a l energy p l a n n i n g only i f i t would aim a t p r o v i d i n g them w i t h energy f o r p r o d u c t i v e , income-generating, a c t i v i t i e s t h a t would c r e a t e employment o p p o r t u n i t i e s f o r t h e i r growing families. - R u r a l energy p l a n n i n g would, t h e r e f o r e , r e q u i r e ( i ) i d e n t i f i- c a t i o n of p o s s i b l e f arm and non-f arm p r o d u c t i v e a c t i v i t i e s (e. g., mechanization, i r r i g a t i o n , a g r o - b u s i n e s s e s ) i n t h e r e g i o n t h a t would i n c r e a s e farm income i f they a r e made more energy-ef f i c i e n t ; ( i i ) a s s e s s m e n t of t h e i r energy r e s o u r c e r e q u i r e m e n t s ; ( i i i ) a s s e s s m e n t of t e c h n i c a l and f i n a n c i a l a s s i s t a n c e requirements, including i n s t i t u t i o n a l and i n f r a s t r u c t u r e arrangements (equipment i n s t a l l a t i o n , maintenance and o p e r a t i o n s , raw m a t e r i a l r e q u i r e m e n t s , marketing, c o o p e r a t i v e format i o n , t r a i n i n g , e t c . ) ; and ( i v ) a s s e s s m e n t of t h e i r s o c i o - c u l t u r a l and t e c h n i c a l impact. 11 Thus, r u r a l energy p l a n n i n g i s i n t i m a t e l y r e l a t e d t o a l l a s p e c t s of r u r a l development and r e q u i r e s in-depth knowledge of t h e r u r a l s i t u a t i o n i n t h e r e g i o n , as w e l l a s c o n s i d e r a b l e u n d e r s t a n d i n g , p e r s e v e r a n c e and committment on t h e p a r t of t h o s e u n d e r t a k i n g i t . For t h i s reason, t h e e x e r c i s e s h o u l d b e d e c e n t r a l i z e d . P r o f e s s i o n a l s and i n s t i t u t i o n s l o c a t e d i n , o r c l o s e t o , t h e r u r a l r e g i o n , who a r e p r e p a r e d t o l i v e i n t h e r e g i o n , and a r e committed t o work through a l l s t a g e s of p l a n n i n g and implementation, s h o u l d b e i d e n t i f i e d and 11 - F o r example, s m a l l f a r m e r s i n O r i e n t e r e g i o n were making bags by d r y i n g locally-grown f i c h e p l a n t s . But they were u n a b l e t o s e l l t h e s e bags i n c o m p e t i t i o n w i t h s y n t h e t i c bags produced i n urban f a c t o r i e s . A l o c a l u n i v e r s i t y group, i n c o n j u n c t i o n w i t h I C A , was s t u d y i n g t h e p o s s i - b i l i t y of d e v e l o p i n g mechanical, p o s s i b l y powered equipment, f o r t h e s e farmers. But p r o v i d i n g such powered equipment, and a s s e s s i n g energy r e q u i r e m e n t s f o r f i c h e a g r o - b u s i n e s s w i l l a l s o r e q u i r e a n assessment of a number of o t h e r a s p e c t s such as: r e s o u r c e r e q u i r e m e n t s f o r develop- ment, t e s t i n g a n d p r o d u c t i o n of t h e m o t o r i z e d equipment; p r o v i s i o n of c r e d i t t o p u r c h a s e them; o t h e r raw m a t e r i a l , o r g a n i z a t i o n of p r o d u c t i o n , and t r a i n i n g r e q u i r e m e n t s ; f o r m a t i o n of m a r k e t i n g c o o p e r a t i v e s ; s o c i o - economic impact of t h i s agro-business on t h e r u r a l community.  s u i t a b l y t r a i n e d t o conduct t h e e x e r c i s e . During t h e O r i e n t e s u r v e y , f o r i n s t a n c e , i t was found t h a t such prof es- s i o n a l s and i n s t i t u t i o n s e x i s t , a l t h o u g h they have l i t t l e c o n t a c t w i t h government a c t i v i t i e s and programs now. - A s u i t a b l e governmental set-up t h e r e f o r e needs t o be c r e a t e d t h a t would l o c a t e , guide, and t r a i n p r o f e s s i o n a l s and i n s t i t u t i o n s , t o form r e g i o n a l r u r a l energy groups, and c o o r d i n a t e a l l r u r a l energy a c t i v i t i e s i n t h e country. - 1/ S e e Annex 2 f o r a f u l l e r d i s c u s s i o n on t h i s s u b j e c t .  VI. RECOMMENDATIONS FOR PHASE I1 14. Based o n t h e l e s s o n s l e a r n t d u r i n g Phase I, t h e f o l l o w i n g g e n e r a l g u i d e l i n e s are proposed f o r Phase 1 1 . - A M i n i s t e r i a l R u r a l Energy C o o r d i n a t i o n Group, c o n s i s t i n g of t h e M i n i s t e r of Energy, and M i n i s t e r s o r s e n i o r o f f i c i a l s from t h e M i n i s t r i e s o f A g r i c u l t u r e , I n d u s t r y , Commerce, DNP, e t c . , and r e p r e s e n t a t i v e s from Las G a v i o t a s , u n i v e r s i t i e s , p r i v a t e i n s t i t u t i o n s and i n d u s t r y , s h o u l d be formed. - T h i s M i n i s t e r i a l Group s h o u l d d i r e c t t h e a c t i v i t i e s of a C e n t r a l R u r a l Energy U n i t , charged w i t h e x e c u t i n g Phase 1 1 . 15. A d i s c u s s i o n of t h e t a s k s of t h e U n i t , and t h e a c t i v i t i e s d u r i n g Phase I1 i s g i v e n i n Annex 3. B r i e f l y , t h e s e a r e a s f o l l o w s : (a) P r e p a r a t i o n of a n i n t e g r a t e d r u r a l energy p l a n , compiled from r e g i o n a l r u r a l energy p l a n s t h a t are f o r m u l a t e d by r e g i o n a l r u r a l energy g r o u p s , L/ under t h e U n i t ' s guidance. (b) O r g a n i z i n g and c o o r d i n a t i n g , development and t e s t i n g of r u r a l energy equipment, i n c l u d i n g m i c r o h y d r o t u r b i n e s , s o l a r h e a t e r s , w i n d m i l l s , bio-gas p l a n t s , wood and c h a r c o a l s t o v e s , e t c . , i n v a r i o u s r e g i o n s by u n i v e r s i t i e s and o t h e r institutions. (c) P r e p a r a t i o n and implementation of R u r a l Energy p i l o t p r o j e c t s i n s e l e c t e d r e g i o n s t o t e s t t h e i n s t i t u t i o n a l arrangements and i n f r a s t r u c t u r e r e q u i r e m e n t s f o r r e g u l a r r u r a l energy projects. (d) O r g a n i z i n g t r a i n i n g programs f o r l o c a l p r o f e s s i o n a l s f o r v a r i o u s r u r a l energy a c t i v i t i e s - - i n c l u d i n g p l a n n i n g , d e s i g n and development of equipment, p r o j e c t p r e p a r a t i o n , e x t e n s i o n work--to p r e p a r e them f o r implementing f u t u r e r u r a l energy projects. (e) P r e p a r a t i o n of a N a t i o n a l R u r a l Energy Program c o n s i s t i n g of r u r a l energy p r o j e c t s i n i t i a l l y f o r D R I r e g i o n s . Major problems a n t i c i p a t e d d u r i n g Phase I1 i n c l u d e : (a) Locating, t r a i n i n g and m o t i v a t i n g s u i t a b l e p r o f e s s i o n a l s t o work i n t h e C e n t r a l R u r a l Energy U n i t and r u r a l energy groups; - 1/ The r e g i o n a l groups may be l o c a t e d i n and c o o r d i n a t e d by t h e r e g i o n a l E l e c t r i f i c a d o r e s , a s s u g g e s t e d i n t h e R u r a l Energy Group's Report.  (b) O r g a n i z i n g and c o o r d i n a t i n g a c t i v i t i e s of r e g i o n a l groups and t h e C e n t r a l U n i t ; (c) Organization a t t h e r u r a l l e v e l f o r ensuring a c t i v e p a r t i c i p a t i o n of t h e r u r a l communities; (d) Low p r i o r i t y t o t h e e x e r c i s e b e c a u s e i t i n v o l v e s time- consuming a c t i v i t i e s t h a t do n o t o f f e r immediate r e s u l t s . 17. I n v i e w of t h e s e problems, i t i s s u g g e s t e d t h a t , i n t h e i n i t i a l s t a g e of P h a s e 11, a r e g i o n a l r u r a l energy group s h o u l d b e formed only i n t h e A n t i o q u i a region. The group _1/ s h o u l d develop a rural energy p l a n f o r O r i e n t e , and conduct a p i l o t p r o j e c t i n t h i s r e g i o n t o t e s t i n s t i t u t i o n a l and i n f r a s t r u c t u r e arrangements r e q u i r e d f o r implementation of r u r a l energy projects. T h i s group's e x p e r i e n c e c o u l d b e used f o r o r g a n i z i n g s i m i l a r groups i n o t h e r regions. 18. The C e n t r a l R u r a l Energy U n i t s h o u l d , meanwhile, o r g a n i z e t r a i n i n g programs a t t h e U n i v e r s i t y of Los Andes and o t h e r u n i v e r s i t i e s f o r r e c e n t l y g r a d u a t e d young e n g i n e e r s and o t h e r p r o f e s s i o n a l s from d i f f e r e n t r e g i o n s t o p r e p a r e them f o r r e g i o n a l energy g r o u p s i n t h e i r r e s p e c t i v e home r e g i o n s . At t h e same t i m e , a p r o m o t i o n a l d r i v e s h o u l d b e i n i t i a t e d by t h e M i n i s t r y of Energy c a l l i n g q u a l i f i e d young p r o f e s s i o n a l s , e n g i n e e r s and s c i e n t i s t s t o work i n t h e c h a l l e n g i n g f i e l d of r u r a l e n e r g y , and o f f e r them a p p r o p r i a t e i n c e n t i v e s such a s t r a i n i n g a b r o a d a f t e r t h r e e y e a r s ' work, a t t r a c t i v e s a l a r i e s , recogni- t i o n of t h e i r work, and i n t h e mass media, e t c . 19. Thus, a n o v e r a l l program approach o r i g i n a t i n p a t t h e l o c a l r u r a l l e v e l , and c u l m i n a t i n g a t t h e c e n t r a l M i n i s t e r i a l l e v e l , i s n e c e s s a r y . I t s h o u l d f i r s t be experimented w i t h i n one r e g i o n , and l a t e r r e p l i c a t e d i n o t h e r regions. Only by g o i n g through a l l s t a g e s of t h i s approach w i l l i t be p o s s i b l e t o o r g a n i z e a s u c c e s s u l N a t i o n a l R u r a l Energy Program d u r i n g P h a s e 1 1 1. 20. T h i s N a t i o n a l R u r a l Energy Program may i n c l u d e , among o t h e r compo- n e n t s , r e g i o n a l r u r a l energy p r o j e c t s i n i t i a l l y i n DRI a r e a s , r e s e a r c h , development and p r o d u c t i o n f a c i l i t i e s f o r energy c o n v e r s i o n equipment, t r a i n - i n g programs f o r l o c a l p r o f e s s i o n a l s f o r r u r a l energy a c t i v i t i e s , s e t t i n g up of a c e n t r a l r u r a l energy i n s t i t u t i o n and r e g i o n a l r u r a l energy u n i t s . The Program i s e x p e c t e d t o be l a r g e enough t o r e q u i r e e x t e r n a l f i n a n c i n g and may, i f found t e c h n i c a l l y and economically f e a s i b l e , b e s u p p o r t e d by t h e Bank. 21. However, Bank r o l e as a development agency is c r u c i a l i n Phase 11, when t h e f o u n d a t i o n of t h e program w i l l be b u i l t . During t h i s phase, problems i n v o l v i n g development of l o c a l i n s t i t u t i o n a l and p r o f e s s i o n a l c a p a b i l i t i e s must be t a c k l e d , and Bank p a r t i c i p a t i o n could h e l p i n s e v e r a l ways. Bank involvement, f o r example, c o u l d e n s u r e high l e v e l o f f i c i a l s u p p o r t v i t a l i n 11 - S e e Annex 4 f o r o r g a n i z a t i o n and t a s k s of t h e A n t i o q u i a group. t h e f o r m a t i v e s t a g e s of t h e program. Bank c o u l d assist i n i d e n t i f y i n g , t r a i n i n g and m o t i v a t i n g c a p a b l e p r o f e s s i o n a l s f o r working i n t h e e x e r c i s e , and l a t e r i n t h e program. Bank c o u l d a r r a n g e f o r a p p r o p r i a t e t e c h n i c a l and f i n a n c i a l a s s i s t a n c e when r e q u i r e d . F i n a l l y , Bank could a s s i s t i n coordi- n a t i n g t h e v a r i o u s o f f i c i a l s , p r o f e s s i o n a l s and i n s t i t u t i o n s i n v o l v e d a t d i f f e r e n t l e v e l s of t h e e x e r c i s e and, i n t h e p r o c e s s , s a f e g u a r d t h e i n t e r e s t s of t h e r u r a l poor t o whose welfare b o t h t h e Colombian Government and t h e Bank a r e committed.  ANNEX 1 MISSION REPORTS  ANNEX 1 Page 1 Report on t h e f i r s t R u r a l Energy M i s s i o n May 23 t o 30, 1977 1. The o b j e c t i v e s of t h i s p r e p a r a t o r y r u r a l energy p l a n n i n g m i s s i o n were as f o l l o w s : (i) A s c e r t a i n t h e view of v a r i o u s o f f i c i a l s and i n s t i t u t i o n s , and c o l l e c t r e l e v a n t i n f o r m a t i o n on r u r a l energy i n Colombia. (ii) Examine t h e p o s s i b i l i t y of o r g a n i z i n g r u r a l energy p l a n n i n g and implementation on a c o n t i n u i n g b a s i s i n Colombia a l o n g t h e l i n e s proposed i n t h e n o t e s on R u r a l Energy P l a n n i n g p r e s e n t e d t o Government o f f i c i a l s by t h e mission. (iii) I d e n t i f y p o s s i b l e Bank a s s i s t a n c e i n t h e i n i t i a l phase of t h i s task. Observations 2. Based on t h e d i s c u s s i o n s w i t h o f f i c i a l s i n t h e v a r i o u s i n s t i t u t i o n s , l/ - and i n £ o r m a t i o n a v a i l a b l e t o i t , t h e m i s s i o n made t h e f o l l o w i n g o b s e r v a t i o n s : (i) The R u r a l S e c t o r i n Colombia c o n s i s t s of some 40% of t o t a l popu- l a t i o n and makes up a b o u t 30% of t o t a l GDP. Commercial farming p r o v i d e s f o r a b o u t 60% of Colombia's e x p o r t s , b u t a major propor- t i o n of t h e domestic o u t p u t (some 70%) i s p r o v i d e d by small f a r m e r s . (ii) Output from t h e small f a r m s e c t o r , however, h a s been s t a g - n a t i n g a t a growth r a t e of 2.5% compared t o 8% f o r commercial crops. The Governemnt r u r a l development program (DRI) mainly aims a t removing t h e c o n s t r a i n t s f a c e d by t h e s m a l l f a r m s e c t o r . F o r t h i s p u r p o s e , some 70% of D R 1 8 s r e s o u r c e s are a l l o c a t e d f o r c r e d i t , technology and t r a i n i n g and 30% f o r s o c i a l s e r v i c e s i n c l u d i n g h e a l t h , e d u c a t i o n , e l e c t r i c i t y f o r t h e domestic sector. (iii) Thus, r u r a l e l e c t r i f i c a t i o n i s t h e o n l y energy r e s o u r c e i n D R 1 8 s p r e s e n t program. F u r t h e r m o r e , r u r a l e l e c t r i f i c a t i o n i s p r o v i d e d o n l y as a s o c i a l i n p u t mainly f o r d o m e s t i c l i g h t i n g , r a t h e r t h a n f o r i n c r e a s i n g production. ICEL, t h e e x e c u t i n g agency f o r r u r a l e l e c t r i f i c a t i o n programs, s e l e c t s communities f o r e l e c - t r i f i c a t i o n , i n areas d e c i d e d by D R I , on t h e b a s i s of c o s t p e r f a m i l y : Communities w i t h a v e r a g e c o s t of e l e c t r i f i c a t i o n program less t h a n $500/family a r e u s u a l l y s e l e c t e d . No q u a n t i t a t i v e a n a l y s i s of t h e b e n e f i t s of e l e c t r i f i c a t i o n i s now conducted. Because of r e s o u r c e c o n s t r a i n t s , o n l y about 20% of t h e r u r a l p o p u l a t i o n have r e c e i v e d e l e c t r i c i t y s i n c e t h e r u r a l e l e c t r i f i c a t i o n program began i n 1973. - 1/ S e e Attachment 1, Annex 1.  ANNEX 1 Page 2 (iv) The r o l e of planned energy i n p u t s f o r v a r i o u s p r o d u c t i v e a c t i v i t i e s such a s i r r i g a t i o n , c u l t i v a t i o n , t h r e s h i n g , weeding, h a r v e s t i n g , t r a n s p o r t and r u r a l agro-indus t r i e s , by u t i l i z i n g a l t e r n a t i v e commercial and non-commercial energy r e s o u r c e s s u c h as s o l a r , wind, b i o g a s , c o a l , c h a r c o a l , k e r o s e n e , n a t u r a l g a s and small h y d r o e l e c t r i c i t y schemes, h a s n o t a s y e t been i d e n t i f i e d f o r r u r a l development. (v) Abundant s u p p l i e s of energy r e s o u r c e s s u c h as hydro, g a s and c o a l e x i s t i n Colombia which c o u l d be u t i l i z e d i n r u r a l a r e a s f o r p r o v i d i n g energy i n p u t s f o r r u r a l development i n a planned manner. For example, c o a l p r o d u c t i o n i s e x p e c t e d t o be r a i s e d t o 5 mt/year by 1980. A major c o n s t r a i n t i n r e a c h i n g t h i s t a r g e t , however, seems t o be t h e s h o r t f a l l i n demand. The u s e of c h a r c o a l , s o f t coke and c o a l i n r u r a l a r e a s may go a l o n g way i n s t i m u l a t i n g demand f o r c o a l p r o d u c t i o n . Gas p r o d u c t i o n now i s some 130 b i l l i o n c u f t . LN G i s used i n some r u r a l a r e a s , b u t a p p a r e n t l y w i t h o u t any planning. Colombia h a s hydro p o t e n t i a l of 100,000 MW of which o n l y about 3.0% is b e i n g p r e s e n t l y u t i l i z e d . Similarly, s o l a r , wind, b i o g a s may be used f o r v a r i o u s t a s k s such a s h e a t i n g , pumping, e l e c t r i c i t y on a r e g u l a r b a s i s i n t h e r u r a l s e c t o r . Windmills f o r pumping, i n f a c t , were found t o be used by some f a m i l i e s ( t h r e e i n s t a n c e s ) d u r i n g a v i s i t by t h e m i s s i o n t o v i l l a g e s on t h e o u s k i r t s of Bogota. (vi) Technological c a p a b i l i t i e s l -/ f o r h a r n e s s i n g renewable and non-renewable s o u r c e s of energy f o r r u r a l a r e a s e x i s t i n t h e c o u n t r y . The G a v i o t a s p r o j e c t , f o r example, h a s developed t h e f o l l o w i n g p r o d u c t s (among o t h e r s ) f o r O r i n o q u i a r e g i o n : a h y d r a u l i c ramp (20 meters l i f t , c o s t a b o u t 600 p e s o s ) , w i n d m i l l pump ( 8 meters l i f t ) , s m a l l h y d r o e l e c t r i c schemes of 50kw c a p a c i t y ( c o s t about 15,000 pesos/kw). A f a c t o r y , f o r producing t h e s e equipment i s being set up i n G a v i o t a s w i t h UNDP and Dutch a s s i s t a n c e . These equipment w i t h s u i t a b l e a l t e r a t i o n s , o r s i m i l a r new equipment, may be developed f o r o t h e r r u r a l a r e a s i n t h e country. The Mechanical E n g i n e e r i n g Department of t h e U n i v e r s i t y of Los Andes, which i s t h e t e c h n i c a l wing of t h e G a v i o t a s p r o j e c t , h a s workshops t o d e s i g n and t e s t such new equipment. I t s f u t u r e p l a n s i n c l u d e development of p h o t o v o l t a i c c e l l s and energy c o n v e r s i o n equipment f o r u t i l i z i n g c o a l and gas. Moreover, t h i s Department a l s o o r g a n i z e s r e g u l a r s e m i n a r s on r u r a l development and encourages i t s s t u d e n t s t o u n d e r t a k e t h e i r term p r o j e c t s i n r u r a l a r e a s on energy and r e l a t e d s u b j e c t s . T h i s young e n g i n e e r i n g t a l e n t c o u l d be t r a i n e d and u t i l i z e d i n r u r a l energy programs b o t h f o r s o f t w a r e 11 - Also s e e Annex 2.  ANNEX 1 Page 3 ( p l a n n i n g , demand supply s u r v e y s ) and hardware ( e n e r g y c o n v e r s i o n equipment d e s i g n and development). The m i s s i o n was informed, f o r example, t h a t a group of r e c e n t l y g r a d u a t e d young e n g i n e e r s have s t a r t e d a f i r m f o r p r o v i d i n g c o n s u l t a n c y s e r v i c e s t o small f a r m e r s . S t u d e n t s a r e a l s o encouraged t o p r o v i d e a d v i s o r y s e r v i c e s t o r u r a l a r e a s on an ad hoc b a s i s . These e f f o r t s c o u l d be o r g a n i z e d , t o good a d v a n t a g e , on r e g u l a r b a s is. (vii) Some Colombian i n s t i t u t i o n s have a l r e a d y i n i t i a t e d a c t i v i t i e s i n r u r a l e n e r g y , b u t a t p r e s e n t t h e s e a c t i v i t i e s have l i t t l e momentum. Los G a v i o t a s P r o j e c t , f o r example, i s c u r r e n t l y c o n f i n e d t o one r e g i o n only. ICA, which h a s e x p e r i e n c e i n c o n d u c t i n g r u r a l e l e c t r i f i c a t i o n demand s u r v e y s w i t h ICEL, informed t h e m i s s i o n of i t s i n t e r e s t i n c o n d u c t i n g s i m i l a r s u r v e y s f o r o v e r a l l energy demand. ICA h a s a l s o i n t r o d u c e d small e l e c t i c a l s t o v e s i n some r u r a l a r e a s and has p l a n s t o t e s t Las G a v i o t a s equipment. ICEL t o o p l a n s t o test Las G a v i o t a s equipment, and i s e s p e c i a l l y i n t e r e s t e d i n t h e u s e of g a s i n r u r a l a r e a s . But b o t h ICEL and I C A have n o t y e t developed s p e c i f i c a c t i o n programs f o r o t h e r s o u r c e s of r u r a l energy b e s i d e s e l e c t r i c i t y . The Energy P l a n n i n g D i v i s i o n of DNP i s p r o p o s i n g t o conduct a s t u d y i n t h e u s e of small h y d r o e l e c t r i c p l a n t s f o r r u r a l a r e a s i n about 2-3 months, b u t up t o now i t s a c t i v i t i e s have been c o n f i n e d t o r u r a l e l e c t r i f i c a i t o n through c e n t r a l i z e d g e n e r a t i o n . D R I h a s a l s o been p l a n n i n g t o s t u d y t h e r o l e of v a r i o u s e n e r g y inputs, including e l e c t r i f i c a t i o n f o r a g r i c u l t u r a l production, and t o d e v e l o p g u i d e l i n e s and c r i t e r i a f o r s e l e c t i n g a r e a s and f a r m e r s who w i l l b e n e f i t most by p l a n n e d s u p p l y of t h e l e a s t c o s t mix of e n e r g y i n p u t s . But t h i s s t u d y h a s n o t been i n i t i a t e d as y e t . Conclusions The f o l l o w i n g c o n c l u s i o n s emerge from t h e above o b s e r v a t i o n s : (a) The need f o r p r o v i d i n g energy i n a p l a n n e d manner f o r r u r a l development is g e n e r a l l y r e c o g n i z e d by Colombian i n s t i t u t i o n s and o f f i c i a l s . (b) I n s t i t u t i o n a l and t e c h n o l o g i c a l c a p a b i l i t i e s f o r p r o v i d i n g t h e s e energy i n p u t s a l s o e x i s t i n Colombia. (c) However, t o be e f f e c t i v e , t h e s e c a p a b i l i t i e s must be u t i l i z e d by o r g a n i z i n g them under a n o v e r a l l r u r a l energy program t h a t i n t e g r a t e s energy demand, s u p p l y , technology and p l a n n i n g components.  ANNEX 1 Page 4 Recommends t i o n s It is recommended t h a t a n o v e r a l l r u r a l e n e r g y program be orga- n i z e d i n two p h a s e s i n Colombia: 1. Phase I w i l l i n v o l v e d e t e r m i n i n g t h e q u a l i t a t i v e r e l a t i o n s h i p between energy and r u r a l development, e s p e c i a l l y a g r i c u l t u r a l p r o d u c t i o n , and g u i d e l i n e s f o r f u t u r e work. A R u r a l Energy Task Force s h o u l d be set up t o conduct t h e a c t i v i t i e s i n t h i s phase. The t a s k f o r c e may c o n s i s t of r e p r e s e n t a t i v e s from I C A , ICEL, DNP, D R I , among o t h e r s , b u t work under t h e d i r e c t i o n of t h e DRI b e c a u s e of t h e u r g e n t need of r u r a l energy p l a n n i n g f o r ongoing D R I programs. The t a s k s d u r i n g Phase I may be as f o l l o w s : (a) I d e n t i f y t h e e x i s t i n g s i t u a t i o n r e g a r d i n g p o l i c i e s and i n s t i t u t i o n s r e l a t e d t o v a r i o u s a s p e c t s of r u r a l energy i n Colombia; (b) Examine t h e o v e r a l l r u r a l energy problem i n a s e l e c t e d r e g i o n / r e g i o n s ( A n t i o q u i a r e g i o n i n Area 3 of t h e DRI h a s been t e n t a t i v e l y s e l e c t e d ) from t h e demand, s u p p l y , technology and p l a n n i n g a s p e c t s , and e s t a b l i s h t h e q u a l i - t a t i v e r e l a t i o n s h i p between e n e r g y and r u r a l development; (c) On t h e b a s i s of f i n d i n g s p r o p o s e ( i ) d i r e c t i o n s f o r d e t a i l e d q u a n t i t a t i v e and f i e l d work r e q u i r e d f o r d e t e r m i n i n g guide- l i n e s and c r i t e r i a f o r r u r a l e n e r g y p o l i c i e s and p r o j e c t s , ( i i ) s t a f f , t r a i n i n g and r e s o u r c e r e q u i r e m e n t s f o r a permanent r u r a l energy u n i t t h a t w i l l p r e p a r e and implement r u r a l energy program and p r o j e c t s . 2. Phase 1 1 w i l l i n v o l v e c o n d u c t i n g d e t a i l e d q u a n t i t a t i v e work proposed i n Phase I, f o l l o w e d by r u r a l e n e r g y p r o j e c t p l a n n i n g , p r e p a r a t i o n and implementation. A r u r a l e n e r g y p r o j e c t may c o n s i s t of t h e l e a s t - c o s t mix o f e n e r g y a l t e r n a t i v e s , i n c l u d i n g r u r a l e l e c t r i f i c a t i o n , s m a l l h y d r o e l e c t r i c schemes, c o a l d e r i v a t i v e s , LNG, s o l a r , wind, b i o g a s , etc., f o r meeting v a r i o u s t y p e s o f r u r a l e n e r g y demand o v e r t h e p l a n n i n g horizon. T h i s phase w i l l be t h e r e s p o n s i b i l i t y of t h e permanent R u r a l Energy U n i t (REU). The a c t i v i t i e s and s t a f f of t h i s u n i t may be i n c r e a s e d i n s t a g e s . The u n i t may, f o r example, p e r f o r m the following functions: Research: F i e l d s u r v e y s and development of c r i t e r i a and i t s methodologies f o r r u r a l energy p l a n n i n g and p r o j ect s . - 1/ These recommendations a r e based o n t h e d i s c u s s i o n s d u r i n g t h e m i s s i o n ' s f i n a l m e e t i n g s w i t h r e p r e s e n t a t i v e s from ICA, ICEL, D R I , DNP and D r . S e r g i o Duran and are t h e r e f o r e t h e r e s u l t of t h e i r j o i n t e f f o r t s .  ANNEX 1 Page 5 Project Planning and P r e p a r a t i o n : P r e p a r a t i o n of R u r a l Energy P r o j e c t s and r e s p o n s i b i l i t y f o r t h e i r a p p r a i s a l by financial institutions. P r o j e c t Implementation: Project supervision, including organization of r u r a l energy e x t e n s i o n s e r v i c e . Technology and T r a i n i n g : Development of l o c a l t e c h n o l o g i c a l c a p a b i l i - ties i n c l u d i n g u n i v e r s i t i e s , p r i v a t e indus- t r i e s , and o t h e r i n s t i t u t i o n s f o r u t i l i z i n g t h e i r v a r i o u s renewable and non-renewable energy r e s o u r c e s i n t h e r u r a l s e c t o r . O r g a n i z i n g f i n a n c i n g and c o o r d i n a t i o n of l o c a l R e s e a r c h and Development and produc- t i o n of r u r a l energy hardware. O r g a n i z i n g t r a i n i n g programs f o r l o c a l young e n g i n e e r s and o t h e r p r o f e s s i o n a l s f o r r u r a l e n e r g y programs. These, however, are t e n t a t i v e s u g g e s t i o n s whose f e a s i b i l i t y may be e x p l o r e d d u r i n g Phase I.  ANNEX 1 Page 6 Report on t h e second R u r a l Energy M i s s i o n August 8' t o 12, 1977 Brief Description 1. S a n t u a r i o , i n A n t i o q u i a (Area 3 of D R I program), was v i s i t e d w i t h t h e R u r a l Energy Group t o g e t a n overview of t h e problem and a s s e s s f e a s i b i l - i t y of r u r a l e n e r g y planning. I t is a b o u t 250 ha w i t h a p o p u l a t i o n of a b o u t 800. The f a r m e r s a r e r e l a t i v e l y w e l l o f f , compared t o o t h e r r e g i o n s covered by Government's R u r a l Development programs. Farm s i z e u s u a l l y v a r i e s from 2 t o 5 ha, and t h e main c r o p s are cabbage, c a r r o t s , b e a n s , maize and p o t a t o e s . O t h e r farm a c t i v i t i e s i n c l u d e p o u l t r y and c a t t l e r e a r i n g . Farmers u s u a l l y own two o r more cows. 2. The c o u n t r y s i d e i s h i l l y and u n d u l a t i n g . The o n l y means of communi- c a t i o n a r e mud r o a d s and pathways, and t h e mode of t r a n s p o r t i s h e a d l o a d i n g and mules. A l s o , t h e o n l y means of w a t e r s u p p l y f o r a g r i c u l t u r a l and domestic a c t i v i t i e s i s r a i n f a l l , e i t h e r d i r e c t l y o r t h r o u g h i t s c o l l e c t i o n i n small r i v e r s and s t r e a m s . E x i s t i n g Energy Consumption P a t t e r n 3. I n t h e e x i s t i n g s e t up, energy i s mainly used f o r domestic consump- tion. Energy r e s o u r c e s a r e : (a) Fuelwood: Farmers e i t h e r grow fuelwood o n farms o r o b t a i n i t by c u t t i n g p u b l i c trees. The g e n e r a l d e c l i n e i n fuelwood a v a i l a b i l i t y seemed t o be a m a t t e r of deep concern f o r t h e r u r a l community. (b) Charcoal: T h i s i s purchased from t h e market a t about 20 pesos. Farmers were r e p o r t e d t o spend 10 t o 20% of t h e i r a n n u a l income on f u e l s f o r domestic consumption. (c) E l e c t r i c i t y : E l e c t r i c i t y is a v a i l a b l e through t h e r u r a l e l e c t r i - f i c a t i o n network b u t few f a m i l i e s u s e i t because of t h e h i g h c o s t s of e l e c t r i c a l connection. A/ 4. Major s o u r c e s of p o t e n t i a l energy demand f o r p r o d u c t i v e farm and non-farm a c t i v i t i e s t h a t r e q u i r e f u r t h e r i n v e s t i g a t i o n a r e : - 1/ About 20,000 p e s o s f o r each member of a group of 20. T h i s i s c o n s i d e r e d p r o h i b i t i v e by most f a r m e r s . For example, o n e - f a r m e r had t o m a i n t a i n a n o t h e r house n e a r t h e c i t y , where l i g h t i n g was e a s i l y a v a i l a b l e , f o r h i s c h i l d r e n ' s e d u c a t i o n . But t h e absence of h i s f a m i l y a t t h e farm house l i m i t e d h i s farm a c t i v i t i e s and t h e r e f o r e h i s income. Another f a r m e r had r e c e n t l y r e n o v a t e d h i s house a t a c o s t o f some 60,000 p e s o s b u t s t i l l f e l t t h a t e l e c t r i c i t y was t o o e x p e n s i v e f o r him.  ANNEX I Page 7 (a) I r r i g a t i o n : Diesel, -electric o r s o l a r pumps may be used t o r e p l a c e f a r m e r s ' dependence on r a i n w a t e r f o r i r r i g a t i o n . (b) C u l t i v a t i o n , Weeding, C u t t i n g , Threshing, e t c . : A l l these o p e r a t i o n s a r e done manually i n t h e p r e s e n t set up. (c) P o u l t r y , D a i r y : A v a i l a b i l i t y of cheap r e f r i g e r a t i o n may be a major i n c e n t i v e i n promoting d a i r y and p o u l t r y b u s i n e s s , b e s i d e s improving e f f i c i e n c y and c u t t i n g c o s t s i n food usage. 5. Domes t i c consumption of energy would a l s o i n c r e a s e a s farm income i n c r e a s e s due t o i n p u t s provided by government development programs. Energy would be r e q u i r e d f o r r a d i o , t e l e v i s i o n , h e a t i n g , i r o n , e t c . B e s i d e s , f a r m e r s were s p e c i f i c a l l y concerned about g i v i n g t h e i r c h i l d r e n improved e d u c a t i o n a s t h e i r l i v i n g c o n d i t i o n s improve. Because t h e r e i s no secondary s c h o o l i n t h e a r e a , farm c h i l d r e n u s u a l l y go t o t h e c i t y f o r secondary education. This o f t e n r e s u l t s i n a s h o r t a g e of farm-hands, e s p e c i a l l y d u r i n g peak s e a s o n s , and may be r e s p o n s i b l e f o r l o s s i n production. Moreover, city-educated farm c h i l d r e n seldom wish t o r e t u r n t o farming, which r e q u i r e s r i g o r o u s manual l a b o r i n t h e absence of mechanized equipment and e l e c t r i c i t y . Thus, planned energy s u p p l y f o r p r o d u c t i v e a s w e l l a s domestic a c t i v i t i e s may have a s i g n i f - i c a n t r o l e in stemming m i g r a t i o n t o urban a r e a s . 6. P o t e n t i a l s o u r c e s of energy s u p p l y a r e : (a) Small s t r e a m s which may be h a r n e s s e d f o r s e t t i n g up d e c e n t r a l i z e d h y d r o e l e c t r i c schemes. (b) Windmills: S e v e r a l w i n d m i l l s were i n s t a l l e d some d i s t a n c e away from t h e r e g i o n , i n t h e o u t s k i r t s of Medellin. Similar w i n d m i l l s c o u l d be used by t h e f a r m e r s i n t h i s r e g i o n a l s o . (c) Bio-gas: Most f a r m e r s own two o r more c a t t l e . C a t t l e dung was found s c a t t e r e d a l l over; f a r m e r s do n o t seem t o know about t h e u s e of d r i e d dung cakes f o r f u e l , o r about bio-gas. (d) S o l a r , d i e s e l and n a t u r a l gas c o u l d a l s o be u t i l i z e d a s s o u r c e s of energy f o r h e a t i n g , pumping, e t c . Conclusions 7. The f o l l o w i n g c o n c l u s i o n s emerge from t h e above o b s e r v a t i o n s regard- i n g t h e f e a s i b i l i t y of conducting a s y s t e m a t i c energy p l a n n i n g e x e r c i s e f o r t h i s r u r a l region: - I n t h e p r e s e n t set-up, energy i s a c o n s t r a i n t t o b o t h economic and s o c i a l development of t h e region. Farmers have improved t h e i r income because of o t h e r i n p u t s provided by government's r u r a l development programs, b u t a r e u n a b l e t o f u r t h e r develop t h e i r p o t e n t i a l because: ( a ) manual l a b o r i s t h e o n l y means  ANNEX 1 Page 8 a v a i l a b l e f o r f a r m o p e r a t i o n s , e s p e c i a l l y c u l t i v a t i o n and i r r i - g a t i o n ; ( b ) of l a c k of cheap e l e c t r i c i t y , and o t h e r e f f i c i e n t s o u r c e s of energy, f o r non-farm income-generating a c t i v i t i e s , and f o r improving e f f i c i e n c y and q u a l i t y of domes t i c l i f e . Moreover, t h e r a p i d l y d e c r e a s i n g s u p p l y of wood is c a u s i n g long-range problems of d e f o r e s t a t i o n and s o i l e r o s i o n which mus t be t a c k l e d immediately. - Various energy a l t e r n a t i v e s are a v a i l a b l e , b u t t h e techno- economic f e a s i b i l i t y of each o p t i o n t o m e e t d i f f e r e n t t y p e s of energy demand f o r s u b s i s t e n c e and p r o d u c t i o n h a s t o be e v a l u a t e d i n q u a n t i t a t i v e terms. T h i s matching o f energy demand and supply can be done o n l y w i t h i n t h e framework of a n energy plan. P r o j e c t i o n s of demand w i l l have t o be made on t h e b a s i s of e x i s t i n g consumption p a t t e r n s and ?ssumpt i o n s on f u t u r e consumption t o be a s s e s s e d by s u r v e y s . Energy s u p p l y and technology a v a i l a b i l i t y w i l l a l s o have t o be a s s e s s e d from a v a i l a b l e d a t a and surveys. L/ Thus, a d e t a i l e d s t u d y w i l l be r e q u i r e d t o develop t h e g u i d e l i n e s f o r energy p l a n n i n g of t h i s region (or a l a r g e r region t h a t includes t h i s region). This is proposed t o be done i n t h e n e x t mission. - 1/ S e e Annex 5 f o r s u r v e y formats.  ANNEX 1 Page 9 Report o n t h e t h i r d R u r a l Energy M i s s i o n October 2 t o 18, 1977 1. During t h i s m i s s i o n , d i s c u s s i o n s w i t h t h e Colombian Government i n t h e l a s t m i s s i o n (August 8 t o 12, 1977) were f o l l o w e d up and a s s i s t a n c e was p r o v i d e d i n o r g a n i z i n g a Colombian R u r a l Energy Group. The group c o n s i s t e d of l o c a l p r o f e s s i o n a l s i n c l u d i n g a r u r a l economist-cum-sociologist from D R I ( D e s a r a l l o I n t e g r a d o R u r a l ) , a n e l e c t r i c a l e n g i n e e r from ICEL ( I n s t i t u t o Colombiano E n e r g i a E l e c t r i c a l ) and a n a g r i c u l t u r a l e n g i n e e r and a n i r r i g a t i o n e n g i n e e r b o t h from ICA ( I n s t i t u t o Colombiano Agropecuario). 2. The group's f i r s t assignment was t o conduct a f i e l d s t u d y , w i t h my - p a r t i c i p a t i o n and a s s i s t a n c e , i n O r i e n t e , l/ Area 3 of D R I program. The o b j e c t i v e of t h e s t u d y was t o u s e t h e O r i e n t e c a s e t o examine t h e r e l a t i o n - s h i p between energy and r u r a l development and t h e r e a f t e r t o d e t e r m i n e t h e f e a s i b i l i t y of r u r a l energy planning. For t h i s p u r p o s e , t h e group w a s charged w i t h t h e f o l l o w i n g main t a s k s d u r i n g t h e s t u d y : (a) u n d e r s t a n d i n g f a r m e r s ' p e r c e p t i o n of d i f f e r e n t t y p e s of energy needs, and where t h e s e needs f a l l i n t h e i r s c a l e of p r i o r i t i e s ; (b) i d e n t i f y i n g e x i s t i n g p a t t e r n s of energy consumption, e s p e c i a l l y i n r e l a t i o n t o t h e u t i l i z a t i o n of a v a i l a b l e e l e c t r i c i t y s u p p l y and fuelwood; (c) d e t e r m i n i n g p o t e n t i a l s o u r c e s of energy demand, e s p e c i a l l y f o r p r o d u c t i o n ( s u c h a s i r r i g a t i o n , mechanization, a g r o - i n d u s t r i e s ) and p o t e n t i a l s o u r c e s of e n e r g y s u p p l y from d i f f e r e n t renewable and non-renewable s o u r c e s . (d) d e t e r m i n i n g how t h e e x i s t i n g i n s t i t u t i o n a l set-up c o u l d be c o o r d i n a t e d f o r r u r a l energy p l a n n i n g and implementation. D u r i n g t h e s t u d y , which was h e l d between October 5 t o 15: (a) s e l e c t e d f a r m e r s b e l o n g i n g t o d i f f e r e n t income l e v e l s and eco-systems i n t h e r e g i o n were i n t e r v i e w e d ; (b) d i s c u s s i o n s were conducted w i t h r e g i o n a l and f i e l d s t a f f of v a r i o u s p r i v a t e and government i n s t i t u t i o n s i n v o l v e d i n r u r a l development, energy and p l a n n i n g ; 11 - The r e g i o n h a s a p o p u l a t i o n of about 150,000 and a n a r e a of some 30,000 ha. I t i n c l u d e s S a n t u a r i o , which w a s v i s i t e d d u r i n g t h e l a s t mission.  ANNEX 1 Page 10 (c) L o c a l c a p a b i l i t i e s , i n c l u d i n g u n i v e r s i t i e s and some i n d u s t r i e s , f o r developing and producing energy c o n v e r s i o n equipment l - / were i n v e s t i g a t e d . 4. A f t e r t h e s t u d y , we a n a l y z e d t h e d a t a and o b s e r v a t i o n s t o determine t h e o r g a n i z a t i o n of t h e r e p o r t ( s e e a t t a c h m e n t ) . The group i s p r e p a r i n g t h e r e p o r t i n Bogota. 2/ 5. The r e p o r t s h o u l d p r o v i d e a n i n i t i a l document on which f u t u r e c o u r s e of a c t i o n i n r u r a l energy p l a n n i n g and programs i n Colombia may be decided by t h e Colombian Government and t h e Bank. P r e s e n t i n d i c a t i o n s a r e t h a t t h e next s t e p may i n v o l v e developing a f u l l r u r a l energy p l a n f o r t h e r e g i o n , r e q u i r i n g d e t a i l e d demand s u r v e y s and techno-economic e v a l u a t i o n of energy supply and technology a l t e r n a t i v e s by l o c a l c o n s u l t a n t s . - 1/ These i n c l u d e d m i c r o h y d r o t u r b i n e s , windmills, s o l a r h e a t e r s , bio-gas p l a n t s and motors and r e f r i g e r a t o r s f o r u s e by small farmers. I t was found, f o r i n s t a n c e t h a t m i c r o h y d r o t u r b i n e s have been s u c c e s s f u l l y developed, and a r e being promoted i n t h i s r e g i o n by a l o c a l p r i v a t e i n s t i t u t i o n w i t h t h e h e l p of t h e U n i v e r s i t y . Also, l o c a l l y developed windmills and bio-gas p l a n t s were being u s e d by some groups and households. - 2/ The r e p o r t i s now ready.  ANNEX 1 Attachment 1 Institutions Visited 1. N a t i o n a l P l a n n i n g D i r e c t o r a t e (DNP) 2. Programa d e D e s a r r o l l o R u r a l I n t e g r a d o (DRI) 3. Centro Las G a v i o t a s 4. I n s t i t u t o Colombiano Agropecuario (CA) 5. I n s t i t u t o Colombiano d e E n e r g i a E l e c t r i c a (ICEL) 6. U n i v e r s i t y of Los Andes D i s c u s s i o n s w i t h Following O f f i c i a l s : 1. John Naranj o Chief DNP 2. S e r g i o Duran D i r e c tor-General DRI Armando Vegalara 3. L u i s Yeppes Energy P l a n n i n g D i v i s i o n DNP Andres Ruiz Olga P a t r i c i a G a v i r i a 4. Tomas Held Manager ICEL R i c a r d o Gonzales Enrique L a s c a r Raul Serna 5. Paolo L u g a r i Director P r o j e c t o Gaviotas J o r g e Zapp G l a u s e r Technical Director 6. R a f a e l Stevan Olmos ICA Oscar Ray R a m i r e s 7. Jaime Loboguerrero Mechanical U n i v e r s i t y of H. S n e l l Engineering Department Los Andes  Annex .1 Attachment 2 REPORTE DEL GRUPQ COLOMBIANO DE ENERGIA RURAL Prefacio Tgrrninos de Referencia Composici6n del grupo Introducci6n : El problem de l a energia en el sector rum1 en Colombia, Caso del Oriente, Area 3 : San Vicente, Guarne, Santuario y El Carmen. S i tuac i6n soc ioecondmica Patrones de consumo energiticos (uso domistico y producci6n) Infmestructura rural : existente y propuesta , y su relacibn con el consumo de energia (dombtica, agua, irrigaci6n, electric idad, etc .) Electricidad: cosios, usos, beneficios, A n d isis. Fuentes potenciales de demanda de energia (producci6n y agroindustria) Fuentes potenciales de suministro de energia, discusibn de las restricc iones en su desarrollo. lnstituciones y g r u p relacionados con l a energia en esta regi6n y el tra- bajo que est6n desarrollando ICA, Univenidad, Electrificadora, Caja Agm- ria, etc. Tipos de campesinos en las diferentes partes del Oriente. Sus opiniones y manera de utilizacien de l a energia. (Receptividad a nuevas ideas) Conclusiones con base al estudio del Oriente a- Efecto de la energia en varios i n d i c a c i o n e s Ingresos Producci6n Calidad de vida Migraci6n irreas urbanas Hasta q u i punto es l a energia una restriccibn para su desarrollo? b- Utilizaci6n de la electrificaci6n rural. & Es efectiva? c - Necesidades de otros recursos de energia.  d- Necddact de un metodo de apmximaci6n a1 programa de energia mml anto parte del d e m l l o naal. 10- Recomendaciones b.2. A largo plaza c- R e c w requeridos para recomendaciones espect'ficas : c.2. Recwsos fi nancieros d- Cmnogramrr de actividades b- Datos sobre electrificacihn c- Datos sobre instituciones &. Datos slobre s i tuaci6n socioeconbmica Octubre 10 de 1977 mpg .-  ANNEX 2 LOCAL INSTITUTIONAL CAPABILITIES  ANNEX 2 Page 1 Local I n s t i t u t i o n a l C a p a b i l i t i e s 1. C a p a b i l i t i e s of i m p o r t a n t i n s t i t u t i o n s t h a t t h e mission v i s i t e d a r e d i s c u s s e d below f o r i d e n t i f y i n g t h e i r r o l e i n f u t u r e phases of t h e r u r a l energy p l a n n i n g e x e r c i s e . These i n s t i t u t i o n s a r e e i t h e r c u r r e n t l y engaged i n , o r p l a n t o become engaged i n , some a s p e c t of r u r a l energy hardware o r s o f t w a r e activities. The i n s t i t u t i o n s may be c l a s s i f i e d i n t o f o u r c a t e g o r i e s : Government i n s t i t u t i o n s , p r i v a t e i n s t i t u t i o n s , academic i n s t i t u t i o n s , and industries. Government I n s t i t u t i o n s 2. Among t h e government i n s t i t u t i o n s , ICEL a p p e a r s t o be t h e most a c t i v e i n r u r a l energy. I C E L h a s been r e s p o n s i b l e f o r t h e c o u n t r y ' s r u r a l e l e c t r i f i c a t i o n program. I n t h e r e c e n t p a s t , i t has been d i v e r s i f y i n g i n t o o t h e r energy r e s o u r c e s b e s i d e s e l e c t r i c i t y . For example, i t has o r d e r e d 400 s o l a r h e a t e r s from Las G a v i o t a s t o be i n s t a l l e d i n r u r a l r e g i o n s w i t h no r u r a l electrification. Also, I C E L is i n v e s t i g a t i n g t h e p o s s i b i l i t y of u s i n g micro- h y d r o t u r b n e s , w i n d m i l l s , e t c . , i n r u r a l a r e a s . Moreover, i t s management i s keen t o develop a p l a n n i n g methodology f o r making investment d e c i s i o n s on v a r i o u s energy r e s o u r c e s f o r r u r a l a r e a s . ICEL h a s played a major r o l e i n t h i s e x e r c i s e from t h e i n i t i a l s t a g e s , and i s l i k e l y t o p l a y a n even more a c t i v e r o l e in t h e n e x t Phase. 3. Other major government i n s t i t u t i o n s i n t e r e s t e d i n r u r a l energy a r e I C A and D R I . I C A ' s i n f r a s t r u c t u r e d i v i s i o n h a s a n ongoing program i n A n t i o q u i a i n which i t is t e s t i n g v a r i o u s t y p e s of s i m p l e equipment, i n c l u d i n g improved d e s i g n s of e l e c t r i c a l s t o v e s , s a n i t a r y f i t t i n g s , e t c . , i n about 100 s e l e c t e d households. Because I C A i s r e s p o n s i b l e f o r p r o v i d i n g t e c h n i c a l a s s i s t a n c e t o f a r m e r s , i t has a v a s t network of f i e l d o f f i c e s and f i e l d s t a f f who have a good u n d e r s t a n d i n g of t h e r u r a l s i t u a t i o n and of farmer needs. ICA has been i n v o l v e d i n working w i t h I C E L i n conducting r u r a l e l e c t r i f i c a t i o n demand s u r v e y s . I t p r o v i d e d v a l u a b l e s t a f f i n p u t s d u r i n g t h e A n t i o q u i a s t u d y , and s h o u l d c o n t i n u e t o be i n v o l v e d i n t h e n e x t phase. 4. D R I i s r e s p o n s i b l e f o r t h e I n t e g r a t e d R u r a l Development Program i n Colombia, and i n t h a t c a p a c i t y c o o r d i n a t e s v a r i o u s i n s t i t u t i o n s i n v o l v e d i n r u r a l development i n c l u d i n g I C A , ICEL, and o t h e r s such a s C a j a A g r a r i a , INDERENA ( r e s p o n s i b l e f o r fuelwood), SENA ( f o r t r a i n i n g of f a r m e r s ) , e t c . Thus, i t s s t a f f has a good u n d e r s t a n d i n g of t h e o v e r a l l r u r a l i n s t i t u t i o n a l s e t up. Moreover, i t s E v a l u a t i o n U n i t c o n s i s t s of r u r a l economists and s o c i o l o g i s t s who c o u l d p r o v i d e u s e f u l i n p u t s i n t o a r u r a l energy program. D R I was r e s p o n s i b l e f o r c o o r d i n a t i n g Phase I of t h e e x e r c i s e , and would c o n t i n u e t o p l a y a major r o l e i n Phase I1 a l o n g w i t h ICEL. 5. Las Gaviotas: T h i s i s a n autonomous government agency r e s p o n s i b l e f o r t h e new s e t t l e m e n t s i n t h e O r i n o q u i a r e g i o n of E a s t e r n Colombia. The  ANNEX 2 Page 2 T e c h n i c a l D i v i s i o n of t h i s agency h a s developed a number of r u r a l energy equip- ment such a s s o l a r h e a t e r s , a x i a l microhydroturbines, windmills 1 / and i s ncw s e t t i n g up a f a c t o r y f o r t h e i r manufacture, w i t h Dutch and U N D P assistance. The p o s s i b i l i t y of u s i n g t h e s e equipment w i t h s u i t a b l e m o d i f i c a t i o n s i n o t h e r r u r a l r e g i o n s s h o u l d b e examined. The m o d i f i c a t i o n work could be c a r r i e d o u t a t t h e Mechanical E n g i n e e r i n g Department of t h e U n i v e r s i t y of Los Andes where t h e G a v i o t a s equipment were i n i t i a l l y c r e a t e d . 6. Another government i n s t i t u t i o n t h a t could make a v a l u a b l e contribu- t i o n t o a R u r a l Energy Program i s SENA. T h i s i n s t i t u t i o n i s r e s p o n s i b l e f o r r u r a l t r a i n i n g programs and h a s had some e x p e r i e n c e i n r u r a l energy a l s o . For example, i t had sponsored experiments w i t h bio-gas p l a n t s 2 t o 3 y e a r s back i n Santa Barbara c o f f e e areas. (These were l a r g e - s i z e community p l a n t s w i t h 1,050 l i t e r c a p a c i t y c o s t i n g a b o u t 12,000 pesos. The experiment had t o be s t o p p e d p a r t l y b e c a u s e e l e c t r i f i c a t i o n came t o t h e a r e a and p a r t l y because of t e c h n i c a l r e a s o n s i n c l u d i n g i n s u f f i c i e n t gas p r o d u c t i o n due t o s h o r t a g e of p i g dung.) The M e d e l l i n O f f i c e of SENA h a s a d i v i s i o n c a l l e d Program Mobil R u r a l Unit. T h i s U n i t h a s 1 5 i n s t r u c t o r s working i n r u r a l a r e a s and h a s o r g a n i z e d about 850 c o u r s e s t e a c h i n g some 16,000 f a r m e r s l a s t y e a r . Its rural t r a i n i n g c o u r s e s i n c l u d e maintenance of small = c h i n e s , e l e c t r i c a l i n s t a l l a - t i o n and r e p a i r . SENA i s a l s o involved i n developing a p p r o p r i a t e technology equipment f o r r u r a l a r e a s , though t h i s a s p e c t was not i n v e s t i g a t e d i n d e t a i l by t h e mission. Thus, SENA could have a v a l u a b l e i n p u t i n t h e t r a i n i n g , o p e r a t i o n and maintenance, and perhaps, development of r u r a l energy hardware. 7. Caja A g r a r i a i s t h e o f f i c i a l r e s p o n s i b l e f o r p r o v i d i n g l o a n s f o r r u r a l e l e c t r i f i c a t i o n . Loans have a l s o been provided f o r windmills. Though t h e s e l o a n s have been given mostly t o r i c h f a r m e r s , t h e p o s s i b i l i t y of a r r a n g i n g s p e c i a l s o f t l o a n s f o r small f a r m e r s f o r energy equipment such a s s o l a r h e a t e r s , b i o g a s , t u r b i n e s , windmills, e t c . , r e q u i r e s examination. 8. INDERENA i s r e s p o n s i b l e f o r promoting and p r o v i d i n g t e c h n i c a l a s s i s - t a n c e f o r fuelwood p l a n t a t i o n s t o farmers. However, up t o ncw ( d u r i n g t h e l a s t one-year p e r i o d ) no small f a r m e r s have a p p l i e d f o r a fuelwood l o a n from DRI. INDERENA o f f i c i a l s i n M e d e l l i n informed t h e m i s s i o n t h a t small farmers w i l l only a c c e p t t h e i d e a of fuelwood p l a n t a t i o n s i f t h e s e r v i c e i s provided f r e e . T h i s q u e s t i o n needs t o be f u r t h e r i n v e s t i g a t e d t o determine INDERENA's r o l e i n t h e exercise. 9. The M i n i s t r y of A g r i c u l t u r e ' s S e c r e t a r i a de A g r i c o l a ' s department i s r e s p o n s i b l e f o r t h e r e f o r e s t a t i o n program i n t h e c o u n t r y , b u t t h i s program i s c o n c e n t r a t e d on f o r e s t a t i o n f o r i n d u s t r i a l purposes. Thus, only 15 h a of fuelwood p l a n t a t i o n s were p l a n t e d l a s t y e a r . T h i s o f f i c e , however, i n i t i a t e s d e t e r r e n t measures t o p r e v e n t d e f o r e s t a t i o n , which a r e enforced by INDERENA. But t h e s e , a g a i n , have made l i t t l e impact (only $5,000 were c o l l e c t e d i n f i n e s l a s t y e a r ) . 0 t h e r measures i n c l u d e conducting e d u c a t i o n a l programs and a s s o c i a t i n g f a r m e r s w i t h C a j a A g r a r i a f o r e l e c t r i f i c a t i o n loans. A g r i c o l a - 11 Also, s e e F i r s t R u r a l Energy Mission Report, Annex 1 , page 3 .  ANNEX 2 Page 3 a l s o o r g a n i z e s T r a c t o r H i r e and Animal T r a c t i o n S e r v i c e s f o r s m a l l farmers. But t h e supply of t h e s e s e r v i c e s seems t o f a l l f a r s h o r t of t h e demand. For example, i n t h e R i o Negro Area, A g r i c o l a ' s Off i c e owns only 2 t r a c t o r s which are a b l e t o plough a b o u t 200 h a l y e a r f o r 150 f a r m e r s , a l t h o u g h t h e r e are some 700 f a r m e r s i n t h e a r e a . (There are 4 p r i v a t e c o n t r a c t o r s owning a b o u t 15 t r a c t o r s . ) But t r a c t o r s c a n plough l a n d w i t h a s l o p e up t o 30%, w h i l e oxen c a n plough up t o 45% s l o p e . Animal t r a c t i o n s e r v i c e s t h e r e f o r e a r e o f t e n i n g r e a t e r demand ( i n A n t i o q u i a a t l e a s t ) e s p e c i a l l y b e c a u s e f a r m e r s do n o t want t o p u r c h a s e oxen. 11 Thus, t h e r o l e of energy r e q u i r e m e n t s f o r m e c h a n i z a t i o n need t o be examined i n d e t a i l , and A g r i c o l a c o u l d p r o v i d e s i g n i f i c a n t i n p u t s i n t h i s examination. Private Institutions 10. F u t u r o p a r a l a Ninez. T h i s i s a p r i v a t e o r g a n i z a t i o n based i n Medellin. I t s d i s t i n c t i v e c h a r a c t e r i s t i c i s i t s n o v e l approach t o r u r a l development. T h i s i s a three-pronged approach: (i) E n t r e e i s g a i n e d i n t h e r u r a l household by a r o u s i n g t h e f a m i l y ' s concern r e g a r d i n g t h e f u t u r e of t h e i r c h i l d r e n . (ii) Promoting s e l f - r e l i a n c e : Working on t h e minds of t h e f a r m e r s , who may n o t b e i n t e l l e c t u a l s b u t have c o n s i d e r a b l e p r a c t i c a l i n t e l l i g e n c e , t o make them r e a l i z e t h a t they must s o l v e t h e i r own problems. (iii) Chain r e a c t i o n e f f e c t : S e l e c t i o n of key f a r m e r s who have been 'converted' t o promote, new i n n o v a t i o n s i n t h e community by t h e "demonstration" e f f e c t . 11. T h i s approach h a s been developed and t e s t e d over a p e r i o d of 10 y e a r s and i s r e p o r t e d t o have m e t w i t h c o n s i d e r a b l e s u c c e s s i n r u r a l communi- ties. I t h a s a l s o been a b l e t o a t t r a c t many competent Colombian p r o f e s s i o n a l s who work w i t h t h e o r g a n i z a t i o n as v o l u n t e e r s . I n t h e Energy S e c t o r , F u t u r a i s c u r r e n t l y t e s t i n g m i c r o h y d r o t u r b i n e s i n v a r i o u s r u r a l communities i n con- j u n c t i o n w i t h U n i v e r s i t i e s of Los Andes and P o n t i f i c i a . (See a l s o page 8 , Annex 2 . ) Also, one of F u t u r a ' s v o l u n t e e r s , D r . A l v a i r , a s e n i o r and a n e x p e r i e n c e d f o r e s t e r , h a s been a c t i v e i n promoting bio-gas p l a n t s i n t h e r u r a l a r e a s of Antioquia. H e h a s a l s o some sound i d e a s r e g a r d i n g t h e u s e of l a n d and w a t e r r e s o u r c e s , s o i l c o n s e r v a t i o n and f e r t i l i t y , and t h e l o c a t i o n of farms and hydropower p l a n t s . 11 - I n R i o Negro area, f o r example, t r a c t o r s r e q u i r e 8 t o 9 h r s p e r h a f o r ploughing and t h e c o s t i s 1 , 5 0 0 ~ e s o s l h r . Oxen ploughing r e q u i r e s 12 d a y s / h a a t t h e rate of 60 pesoslday. Manual ploughing i s 120 mandaysl h a , and t h e c o s t i s a s s i g n e d a s 70 pesoslday. Cost of oxen i s 15,000 pesos/oxen. Normally t h r e e oxen a r e r e q u i r e d and t h e s e compete f o r l a n d u s e d f o r food crops. The c o s t of t r a c t o r i s 600,000 p e s o s and w i t h R o t o v a t o r , 100,000 pesos. For a f u l l e r d i s c u s s i o n on energy r e q u i r e - ments f o r mechanization, s e e C h a p t e r V I of t h e Colombian R u r a l Energy Report.  ANNEX 2 Page 4 12. Rural Reconstruction. T h i s i s a n o t h e r p r i v a t e i n s t i t u t i o n of about 12-year s t a n d i n g based i n Bogota b u t w i t h some 16 R u r a l C e n t e r s i n v a r i o u s p a r t s of t h e c o u n t r y . Its main f o c u s i s on c o n d u c t i n g e d u c a t i o n programs f o r improving p r o d u c t i v i t y and q u a l i t y of r u r a l l i f e . It h a s a l s o been a c t i v e i n promoting R u r a l E l e c t r i f i c a t i o n . A p a p e r w a s p r e s e n t e d by t h i s o r g a n i z a t i o n on R u r a l E l e c t r i f i c a t i o n i n Colombia i n t h e T h i r d L a t i n American R u r a l E l e c t r i f i c a t i o n Conference h e l d i n Bogota i n 1972. 11 13. S o c i e t y of Engineers. The M e d e l l i n Branch of t h i s s o c i e t y r e c e n t l y o r g a n i z e d a seminar on a l t e r n a t i v e s o u r c e s of energy f o r r u r a l a r e a s . The S o c i e t y h a s been a c t i v e i n o r g a n i z i n g a number of seminars and meetings on v a r i o u s s u b j e c t s r e l a t e d t o e n g i n e e r i n g and development. The q u a l i t y of t h e s e s e m i n a r s , and t h e c a p a b i l i t i e s of i t s members, however, need t o be f u r t h e r i n v e s t i g a t e d t o d e t e r m i n e t h e r o l e t h e S o c i e t y c o u l d p l a y i n r u r a l energy p l a n n i n g and implementation. Academic I n s t i t u t i o n s 14. The m i s s i o n v i s i t e d t h r e e U n i v e r s i t i e s , and h e l d d i s c u s s i o n s w i t h t h e i r E n g i n e e r i n g Departments r e g a r d i n g r u r a l energy m a t t e r s . 15. U n i v e r s i t y of Los Andes. The Mechanical E n g i n e e r i n g Department has developed s o l a r h e a t e r s , m i c r o h y d r o t u r b i n e s , w i n d m i l l s , e t c . , f o r t h e Las Gaviotas P r o j e c t . I t is a l s o c o o r d i n a t i n g w i t h t h e U n i v e r s i t y of P o n t i f i c i a and F u t u r a i n d e v e l o p i n g aild t e s t i n g p e l t o n wheels and g e n e r a t o r sets i n Antioquia. These P e l t o n wheels ( c o s t about 1,600 t o 2,000 pes.os/kw) have been developed by u s i n g a l o c a l l o s t wax i n v e s t m e n t c a s t i n g p r o c e s s . Also, a simple, i n e x p e n s i v e h y d r a u l i c governor h a s been developed which w i l l a l l o w t h e P e l t o n wheel g e n e r a t o r s e t t o be coupled t o small motors and e l e c t r i c i t y can be used f o r p r o d u c t i o n purposes. 2 1 The department h a s a number of o t h e r ongoing experiments, i n c l u d i n g p r o t o t y p e development of w a t e r pump and c o a l burner. It is a l s o i n v e s t i g a t i n g i n t o t h e p o s s i b i l i t y of manufacturing small g e n e r a t o r s , which a r e c u r r e n t l y imported. Under t h e g u i d a n c e of P r o f . Loboguerrero, t h e Department head, some r e c e n t g r a d u a t e s a r e s e t t i n g up small i n d u s t r i e s f o r t h e manufacture of P e l t o n wheels and o t h e r equipment. The Department a l s o r u n s c o u r s e on b a s i c d e s i g n of equipment f o r r u r a l a r e a s . Thus, t h i s U n i v e r s i t y c o u l d p l a y a key r o l e i n t h e d e s i g n and development of r u r a l energy hardware. - 11 According t o R u r a l R e c o n s t r u c t i o n , f a r m e r s u s e e l e c t r i c i t y i n t h e follow- i n g sequence: l i g h t , e l e c t r o - d o m e s t i c a p p l i a n c e s ( j u i c e r s , r a d i o , t e l e v i - s i o n , i r o n ) , and f i n a l l y machines f o r working i n t h e land. Thus, energy u s e f o r domestic n e e d s p r e c e d e s u s e f o r production. - 21 E x i s t i n g m i c r o h y d r o t u r b i n e s a r e used f o r domestic l i g h t i n g and h e a t i n g o n l y , because of t h e h i g h c o s t of c o n v e n t i o n a l governor systems.  ANNEX 2 Page 5 16. U n i v e r s i t y of P o n t i f . i c i a . The E n g i n e e r i n g School of t h i s U n i v e r s i t y h a s o r g a n i z e d 5 ongoing programs, i n c o n j u c t i o n w i t h F u t u r a , f o r t h e t e s t i n g and development of m i c r o h y d r o t u r b i n e s i n r u r a l a r e a s of Antioquia. 11 The m i c r o h y d r o t u r b i n e s c o n s i s t of P e l t o n wheels ( c o s t 1,000 p e s o s ) and g e n e r a t o r s (imported, c o s t : about 12,000 p e s o s ) . 17. The f i v e programs a r e l o c a t e d as follows: (a) S a n t o Domingo: 3 kw hydro g e n e r a t o r f o r a s c h o o l and s u g a r p l a n t . No e l e c t r i c i t y l i n e e x i s t s i n t h e v i c i n i t y . (b) San L u i s : E l e c t r i c i t y l i n e i s c l o s e by. The economics of m i c r o h y d r o t u r b i n e vs t o be worked out. . c e n t r a l i z e d g e n e r a t i o n have (c) Sopot ran: E l e c t r i c i t y l i n e i s about 25 km, b u t would c o s t t h e v i l l a g e r s $0.5 m i l l i o n . Cost of m i c r o h y d r o t u r b i n e h a s t o be determined. (d) Abejoral: One house u s i n g Las G a v i o t a s m i c r o h y d r o t u r b i n e (Las G a v i o t a s t u r b i n e i s an a x i a l t u r b i n e c o s t i n g about 6,500 pesos. ) (e) Cisnero: E l e c t r i f i c a t i o n i n 1 2 houses a 23-kw h y d r o g e n e r a t o r (20 y e a r s o l d ) bought by v i l l a g e r s f o r 20,000 pesos. These programs p r o v i d e v a l u a b l e o p p o r t u n i t y f o r young e n g i n e e r i n g s t u d e n t s t o work i n r u r a l a r e a s . The p o s s i b i l i t y of developing such programs on a l a r g e s c a l e needs t o be i n v e s t i g a t e d . 18. Universidad d e Minas. The E n g i n e e r i n g Department i n t h i s u n i v e r s i t y ( 4 p r o f e s s o r s from chemical, e l e c t r i c a l , a g r i c u l t u r a l and s a n i t a r y e n g i n e e r i n g d e p a r t m e n t s ) h a s s t a r t e d a C e n t e r f o r Environmental A f f a i r s f o r work i n t h e 1/ - D r . John Burton of t h e B r i t i s h Overseas T e c h n i c a l Mission, who i s a l s o a P r o f e s s o r i n t h i s U n i v e r s i t y , i s p l a y i n g a key r o l e i n t h e s e programs a l o n g w i t h h i s Colombian s t a f f c o l l e a g u e s and s t u d e n t s .  ANNEX 2 Page 6 r u r a l a r e a s . The C e n t e r h a s been asked by I C A I n f r a s t r u c t u r e D i v i s i o n t o p a r t i c i p a t e i n I C A ' s program i n t h e O r i e n t e r e g i o n . However, t h e C e n t e r ' s e f f o r t s have n o t y e t g o t o f f t h e ground. One r e a s o n f o r t h i s may be t h e s t r a i n e d r e l a t i o n s between s t a f f and s t u d e n t s of t h i s U n i v e r s i t y . The s t u d e n t s were on s t r i k e when t h e m i s s i o n v i s i t e d i t . The l a b o r a t o r i e s were i n a s t a t e of d i s r e p a i r . ) However, t h e C e n t e r ' s p l a n t o s e t up r u r a l t e l e p h o n e s (through i t s E l e c t r i c a l E n g i n e e r i n g Department) seems promising and s h o u l d be followed up. Also t h e A g r i c u l t u r a l Engineering Department seems a c t i v e (compared t o o t h e r s ) . It r u n s 3 farms, has a well-organized workshop w i t h machines and r e p a i r equipment and works c l o s e l y w i t h I C A Regional U n i t i n Medellin, and t h u s may have u s e f u l c o n t r i b u t i o n s i n t h e a g r i c u l t u r a l mechanization a s p e c t s of r u r a l energy. Industries 19. I n v e s t i g a t i o n r e g a r d i n g l o c a l c a p a b i l i t i e s t o produce d i e s e l g e n e r a t o r and pump s e t s and r e f r i g e r a t o r s f o r use by f a r m e r s i n r u r a l a r e a s r e v e a l e d t h e following : (a) Diesel G e n e r a t o r s These a r e c u r r e n t l y imported. T y p i c a l c o s t s and c a p a c i t i e s a r e : Capacity Col. Pesos 1-3 kwh $ 30,000 2-5 kwh 60,000 19 kwh 260,000 F o r e i g n m a n u f a c t u r e r s such a s Cummins and L i s t e r have branches i n Colombia and i t may be p o s s i b l e t o develop l o c a l c a p a b i l i t y t o manufacture d i e s e l g e n e r a t o r s i n Colombia w i t h t h e i r c o l l a b o r a t i o n . T h i s m a t t e r needs f u r t h e r i n v e s t i g a t i o n . (b) Refrigerators The u s e of s m a l l r e f r i g e r a t o r s c o u l d s i g n i f i c a n t l y improve t h e q u a l i t y of l i f e of s m a l l farmers. 11 R e f r i g e r a t o r s a r e manufactured l o c a l l y , b u t t h e y a r e u s u a l l y l a r g e s i z e d ( i n d u s t r i a l u n i t s ) and used mainly by t h e r i c h e r f a r m e r s i n r u r a l areas. 11 - R e f r i g e r a t o r s c o u l d be used, f o r example, f o r p r e s e r v i n g milk and p o u l t r y produce and meat b o t h f o r f a m i l y consumption and s a l e .  ANNEX 2 Page 7 Some t y p i c a l s i z e s and c o s t s of l o c a l u n i t s a r e : HF' - v (m 1 Col. Pesos R e f r i g e r a t o r manufacturers contacted expressed i n t e r e s t i n examining t h e m a r k e t a b i l i t y of small u n i t s f o r s t o r i n g v e g e t a b l e s , p o t a t o e s , e t c . L o c a l manufacture of s m a l l r e f r i g e r a t o r s needs t o be f u r t h e r i n v e s t i g a t e d , w i t h them. Also, p o s s i b i l i t y of u s i n g c u r r e n t l y a v a i l a b l e l a r g e r r e f r i g e r a t i o n u n i t s , f o r s t o r i n g p o t a t o e s by s m a l l f a r m e r s , o r g a n i z e d by farmer c o o p e r a t i v e s r e q u i r e s i n v e s t i g a t i o n . Conclusions: 1. The f o l l o w i n g c o n c l u s i o n s emerge from t h e above d i s c u s s i o n : - Government i n s t i t u t i o n s such as SENA, I C A , ICEL, AGRICOLA have t h e o r g a n i z a t i o n a l framework t o b r i n g energy r e s o u r c e s and t e c h n o l o g i e s t o l a r g e masses of t h e r u r a l p o p u l a t i o n . Because of t h e i r s i z e t h e s e i n s t i t u t i o n s seem t o o f t e n l a c k c l o s e c o n t a c t w i t h r u r a l communities. - P r i v a t e i n s t i t u t i o n s such a s F u t u r a and R u r a l R e c o n s t r u c t i o n have t h e r e q u i r e d c o n f i d e n c e of t h e r u r a l people, b u t l a c k t h e o r g a n i z a t i o n a l s e t up and r e s o u r c e s t o have l a r g e s c a l e impact. - Academic I n s t i t u t i o n s , e s p e c i a l l y U n i v e r s i t i e s of Los Andes and P o n t i f i c i a , have t h e c a p a b i t i l i t i e s t o develop new r u r a l energy equipment t h a t meet t h e needs of r u r a l communities. But, they t o o would have l i t t l e impact u n l e s s l a r g e s c a l e t e s t i n g , development and p r o d u c t i o n of t h e s e equipment i s o r g a n i z e d w i t h t h e involvement of t h e government and l o c a l industries. - L o c a l I n d u s t r i e s , though i n t e r e s t e d i n t h e r u r a l energy market, w i l l be p r e p a r e d t o u n d e r t a k e t h e r i s k s of produc- t i o n and marketing p r o v i d e d they a r e a s s u e d of Government support. 2. Thus l o c a l c a p a b i l i t i e s e x i s t i n g i n government i n s t i t u t i o n s , p r i v a t e o r g a n i z a t i o n s , u n i v e r s i t i e s and l o c a l i n d u s t r i e s complement each o t h e r , and must be o r g a n i z e d by t h e Government a s p a r t of a n o v e r a l l r u r a l energy program. The s p e c i f i c a c t i v i t i e s d u r i n g t h e next phase of t h e e x e r c i s e , which a r e e x p e c t e d t o r e s u l t i n such a program, a r e d i s c u s s e d i n t h e following sections.  ANNEX 3 RECOMMENDATIONS FOR A C T I V I T I E S I N PHASE I1  ANNEX 3 Page 1 Proposed A c t i v i t i e s d u r i n p Phase I1 The f o l l o w i n g a c t i v i t i e s a r e proposed f o r Phase 11: (a) Formation of a permanent R u r a l Energy U n i t . The U n i t s h o u l d c o n s i s t of e x p e r i e n c e d p r o f e s s i o n a l s drawn from government i n s t i t u t i o n s such a s ICA, ICEL, p r i v a t e i n s t i - t u t i o n s such a s F u t u r a p a r a l a Ninez and R u r a l Recon- s t r u c t i o n and u n i v e r s i t i e s , and i n c l u d e E l e c t r i c a l , Mechanical and I n d u s t r i a l E n g i n e e r s , Agronomists, F i n a n c i a l A n a l y s t s , and Economists. (b) The U n i t s h o u l d work under t h e d i r e c t i o n of a M i n i s t e r i a l committee c o n s i s t i n g of t h e M i n i s t e r of Energy and M i n i s t e r o r S e n i o r o f f i c i a l s from DNP, D R I , M i n i s t r i e s of A g r i c u l t u r e , I n d u s t r y , Commerce, u n i v e r s i t i e s , t h e i n d u s t r i e s , e t c . (c) The U n i t s h o u l d perform t h e f o l l o w i n g t a s k s : (i) Organize q u a l i t a t i v e r u r a l energy surveys i n d i f f e r e n t r e g i o n s and ecosystems of t h e c o u n t r y , s i m i l a r t o t h e o n e conducted by t h e R u r a l Energy Group, d u r i n g Phase I , in O r i e n t e . These s u r v e y s s h o u l d be conducted under t h e u n i t ' s guidance by r e g i o n a l r u r a l energy groups t h a t i n c l u d e p r o f e s s i o n a l s from r e g i o n a l i n s t i t u t i o n s and u n i v e r s i t i e s . The groups may be l o c a t e d i n and c o o r d i n a t e d by t h e r e g i o n a l e l e c t r i f i c a d o r a s . (ii) P r e p a r e a n i n t e g r a t e d r u r a l energy p l a n f o r t h e c o u n t r y , as p a r t o f a n o v e r a l l n a t i o n a l energy program. The i n t e g r a t e d r u r a l energy p l a n s h o u l d be made up of r u r a l energy p l a n s f o r d i f f e r e n t r e g i o n s p r e p a r e d by t h e r e g i o n a l groups. The U n i t w i l l p r o v i d e t h e g e n e r a l g u i d e l i n e s f o r p l a n n i n g , which may be b a s e d o n t h e R u r a l Energy P l a n n i n g Approach o u t l i n e d i n S e c t i o n 1 1 of t h i s r e p o r t . However, t h e s p e c i f i c methodology f o r e a c h r e g i o n a l p l a n w i l l be developed by r e g i o n a l g r o u p s on t h e b a s i s of t h e i r u n d e r s t a n d i n g of t h e l o c a l r u r a l s i t u a t i o n , and w i t h t h e p a r t i c i p a t i o n of r u r a l communities. I n t h i s way, a h e a l t h y s p i r i t of r e g i o n a l c o m p e t i t i o n may be s t i m u l a t e d , and t h e U n i t may p r o v i d e a p p r o p r i a t e i n c e n t i v e s f o r t h i s purpose. The f i r s t r u r a l energy group s h o u l d be s e t up i n A n t i o q u i a . l / - The e x p e r i e n c e of t h i s group s h o u l d be u t i l i z e d i n s e t t i n g up s i m i l a r g r o u p s i n t h e r e g i o n s . 1/ - S e e Annex 4.  ANNEX 3 Page 2 (iii) O r g a n i z e development and t e s t i n g of R u r a l Energy equipment t h a t u t i l i z e v a r i o u s renewable and non- renewable energy r e s o u r c e s , such a s m i c r o h y d r o t u r b i n e s , s o l a r h e a t e r s , w i n d m i l l s , c h a r c o a l and wood s t o v e s , pumps, r e f r i g e r a t o r s , e t c . The R u r a l Energy U n i t would c o o r d i n a t e t h e s e a c t i v i t i e s i n d i f f e r e n t r e g i o n s of t h e c o u n t r y , and p r o v i d e , o r a r r a n g e , f o r a p p r o p r i a t e t e c h n i c a l and f i n a n c i a l a s s i s t a n c e . The hardware development and t e s t i n g may be o r g a n i z e d i n c o n j u n c t i o n with the regional planning exercises. (iv) P r e p a r e and implement R u r a l Energy P i l o t P r o j e c t i n s e l e c t e d a r e a s of one o r more r e g i o n s . Such p i l o t p r o j e c t s a r e necessary t o provide experience f o r f u t u r e f u l l - s c a l e r u r a l energy p r o j e c t s , on t h e i n s t i t u t i o n a l and i n f r a s t r u c t u r e r e q u i r e m e n t s . These r e q u i r e m e n t s i n c l u d e , f o r example: r e l a t i o n s h i p between energy and r u r a l development programs f o r i r r i g a t i o n , a g r o - i n d u s t r i e s , farm mechanization; p r o d u c t i o n , marketing and c r e d i t f a c i l i t i e s f o r energy hardware; e x t e n s i o n s e r v i c e s f o r t h e i n s t a l l a t i o n , o p e r a t i o n , maintenance of energy equipment. The f i r s t p i l o t p r o j e c t may be o r g a n i z e d i n O r i e n t e r e g i o n by t h e A n t i o q u i a r u r a l energy group. (v) O r g a n i z e t r a i n i n g programs f o r l o c a l p r o f e s s i o n a l s f o r d i f f e r e n t t y p e s of r u r a l energy a c t i v i t i e s , i n c l u d i n g p l a n n i n g , d e s i g n , development and t e s t i n g of equipment, r u r a l energy p r o j e c t p r e p a r a t i o n and implementation, r u r a l energy e x t e n s i o n s e r v i c e s , e t c . These t r a i n e d p r o f e s s i o n a l s w i l l be r e q u i r e d f o r t h e implementation of p i l o t p r o j e c t s and l a t e r f u l l s c a l e r u r a l energy projects. T r a i n i n g may be o r g a n i z e d i n c o n j u n c t i o n w i t h u n i v e r s i t i e s , p r i v a t e i n s t i t u t i o n s and i n d u s t r i e s , S o c i e t i e s of E n g i n e e r s , e t c . In t h i s context it w i l l be e s p e c i a l l y worthwhile t o a t t r a c t l o c a l young e n g i n e e r s and s c i e n t i s t s t o work i n t h e r u r a l s e c t o r , f o r example, i n s e t t i n g up employment g e n e r a t i n g s m a l l e n t e r p r i s e s i n r u r a l a r e a s f o r producing and marketing r u r a l energy c o n v e r s i o n equipment. T h i s i d e a i s a l r e a d y being experimented w i t h by t h e U n i v e r s i t y of Los Andes and P o n t i f i c i a and c o u l d be developed f u r t h e r d u r i n g t h e p i l o t p r o j e c t s t a g e i n Phase 11. (vi) P r e p a r e a n a t i o n a l R u r a l Energy Program. The d e t a i l s of t h e program w i l l be worked o u t on t h e b a s i s of t h e e x p e r i e n c e gained i n Phase 11, b u t i t may c o n s i s t of: (a) r u r a l energy p r o j e c t s i n d i f f e r e n t r e g i o n s of Colombia;  ANNEX 3 Page 3 (b) r e s e a r c h , development and production f a c i l i t i e s i n d i f f e r e n t r e g i o n s , f o r r u r a l energy equipment; (c) t r a i n i n g programs and i n s t i t u t i o n s f o r r e g u l a r t r a i n i n g of l o c a l p r o f e s s i o n a l s and r u r a l communities i n r u r a l energy a c t i v i t i e s ; (d) r e g i o n a l r u r a l energy u n i t s and community-based r u r a l energy f i e l d s t a f f ; (e) a c e n t r a l R u r a l Energy I n s t i t u t i o n which i s l o c a t e d i n Bogota and c o o r d i n a t e s a l l r u r a l energy a c t i v i t i e s i n t h e country; (f) a r e g u l a r R u r a l Energy Advisory U n i t i n t h e M i n i s t r y of Energy w i t h t h e M i n i s t e r of Energy as Chairman. Phase 11 i s expected t o extend f o r about one-and-a-half t o two y e a r s .  Annex 3 Attachment COLOMBIA: RURAL ENERGY PLANNING EXERCISE Organization for Phase I1 Ministerial Level Rusal Energy Coordination Group consisting of Minister of Energy, Ministers or Senior Officials from DNP, other ministries, governmental and private institutions Rural Energy Unit consisting of Engineers, Agriculturalists, eco- nomists, etc. Regional Rural Energy Groups consisting of regional universities, local community organizations and private and governmental insti- tutions. ~asksl - Rural Energy Planning, Development and test- +=I ing of hardware. Integrated Rural Energy Plan : 1 Pilot Projects in Selected Areas I I Preparation of a National Rural Energy Program  ANNEX 4 FORMATION OF RURAL ENERGY GROUP I N ANTIOQUZA I N PHASE 11  ANNEX 4 Page 1 Formation of R u r a l Energy Group i n A n t i o q u i a i n Phase I1 1. During t h e O r i e n t e s u r v e y , t h e i n s t i t u t i o n a l and p r o f e s s i o n a l c a p a b i l i t i e s i n A n t i o q u i a r e g i o n , and s p e c i f i c a l l y i n Medellin, t h e c a p i t a l of A n t i o q u i a , were s t u d i e d t o d e t e r m i n e h w t h e s e could be u t i l i z e d i n t h e subsequent phases of t h e e x e r c i s e . 2. I t was found t h a t t h e r e were a number of i n s t i t u t i o n s and p r o f e s - s i o n a l s ( s e e Annex 2 ) who c o u l d make worthwhile c o n t r i b u t i o n s t o r u r a l energy p l a n n i n g and programs, b o t h i n A n t i o q u i a and i n Colombia. But they were now working i n d i v i d u a l l y , w i t h l i t t l e c o o r d i n a t i o n w i t h each o t h e r o r w i t h t h e Government. I t was t h e r e f o r e recommended t h a t a r u r a l energy group be formed i n Antioquia. Because A n t i o q u i a i s e s p e c i a l l y well-endowed w i t h c a p a b l e p r o f e s s i o n a l s and i n s t i t u t i o n s , t h i s group would a l s o be a b l e t o p r o v i d e d i r e c t i o n s and g u i d e l i n e s t o s i m i l a r groups i n o t h e r regions. 3. Following a r e some s u g g e s t i o n s r e g a r d i n g t h e o b j e c t i v e s and t a s k s of t h e A n t i o q u i a group: Objectives (a) To p r e p a r e a r u r a l energy p l a n f o r O r i e n t e region; similar p l a n s may b e p r e p a r e d l a t e r f o r o t h e r r e g i o n s i n Antioquia. (b) To conduct a p i l o t p r o j e c t i n O r i e n t e f o r t e s t i n g t h e i n s t i - t u t i o n a l and i n f r a s t r u c t u r e r e q u i r e m e n t s f o r l a r g e - s c a l e r u r a l energy p r o j e c t s . Composition The group s h o u l d c o n s i s t of a c o o r d i n a t i o n committee and an e x e c u t i v e committee: 1) The c o o r d i n a t i o n committee, s h o u l d be c h a i r e d by a high- r a n k i n g e l e c t e d o f f i c i a l of Antioquia. I t s members should i n c l u d e s e n i o r o f f i c i a l s o r r e p r e s e n t a t i v e s from: ICA, DRI, SENA, CAJA AGRARIA, AGRICOLA, CIRCUITO, FUTURA, C HAMBER OF COMMERCE, INDUSTRY REPRESENTATIVES, U n i v e r s i t y of P o n t i f i c i a and U n i v e r s i d a d de Minas. (2) The e x e c u t i v e committee should b e by t h e R e g i o n a l Manager, I C A , and i n c l u d e p r o f e s s i o n a l s 'from SENA, I C A , FUTURA, s t a f f and s t u d e n t s from t h e U n i v e r s i t i e s P o n t i f i c i a and Minas, and o r g a n i z e t h e work of t h e f o l l o w i n g teams: (i) E d u c a t i o n and T r a i n i n g Team: SENA, FUTURA, I C A . T h i s team w i l l conduct e d u c a t i o n programs i n r u r a l  ANNEX 4 Page 2 communities t o t e a c h f a r m e r s how they c o u l d improve t h e i r l i v e s by u t i l i z i n g e f f i c i e n t s o u r c e s of energy f o r domestic u s e and production. I t w i l l a l s o conduct t r a i n i n g and d e m o n s t r a t i o n programs f o r v a r i o u s rural energy equipment. (ii) R u r a l Energy Demand Team c o n s i s t i n g of FUTURA, I C A , U n i v e r s i t y of Minas. T h i s team w i l l conduct household s u r v e y s t o a s s e s s energy p r o j e c t i o n s . (iii) R u r a l Energy Supply Team: - Bio-gas: FUTURA, SENA - Kicrohydroturbines: FUTURA, U n i v e r s i t y of P o n t i f i c i a - S o l a r , wind: FUTURA, U n i v e r s i t y of P o n t i f i c i a , CIRCUITO - Rural e l e c t r i f i c a t i o n : CIRCUITO, U n i v e r s i t y of P o n t i f i c i a - Fossil fuels: U n i v e r s i t y of Minas T h i s team w i l l conduct techno-economic a s s e s s m e n t s of v a r i o u s energy a l t e r n a t i v e s and determine f e a s i b l e o p t i o n s t h a t need t o be examined and t e s t e d f u r t h e r . (iv) R u r a l I n f r a s t r u c t u r e Team: - Communication: U n i v e r s i t y of Minas - Irrigation: I C A , U n i v e r s i t y of P o n t i f i c i a - Agro-business: I C A , U n i v e r s i t y of Minas - A g r i c u l t u r a l mechanization: ICA, U n i v e r s i t y of Minas - Water s u p p l y , f o r e s t r y : EUTURA, I C A - Transport: SENA, I C A T h i s team w i l l s t u d y t h e i n f r a s t r u c t u r e r e q u i r e m e n t s of t h e r u r a l r e g i o n and a s s e s s energy i m p l i c a t i o n s of t h e s e requirements. (v) P r o t o t y p e t e s t i n g team: U n i v e r s i t y of P o n t i f i c i a , U n i v e r s i t y of Minas, EUTURA, ICA. T h i s team w i l l conduct t e s t i n g of d i f f e r e n t t y p e s of equipment i n s e l e c t e d r u r a l households communities and e f f e c t d e s i g n m o d i f i c a t i o n s on t h e b a s i s of f i e l d t r i a l s .  ANNEX 4 Page 3 (vi) P r e p a r a t i o n of r u r a l e n e r g y p l a n f o r O r i e n t e . T h i s w i l l be a j o i n t t a s k of r e p r e s e n t a t i v e s of a l l teams and w i l l be d i r e c t e d by t h e e x e c u t i v e committee. Tasks The t a s k s of t h e group may be d i v i d e d i n t o two phases: Phase I: T h i s w i l l c o n s i s t of household s u r v e y s (Annex 5 ) , assessment of demand, techno-economic assessment o f s u p p l y o p t i o n s , t e s t i n g of p r o t o t y p e s , d e t e r m i n i n g a c c e p t a b i l i t y of new energy t e c h n o l o g i e s by r u r a l communities and, f i n a l l y , p r e p a r i n g a r u r a l energy p l a n f o r t h e O r i e n t e region. These t a s k s e w i l l be conducted by t h e teams d e s c r i b e d above, under t h e c o o r d i n a t i o n committee. Phase 11: O r g a n i z a t i o n of a r u r a l e n e r g y p i l o t p r o j e c t i n O r i e n t e . The d e t a i l s o f t h i s o r g a n i z a t i o n w i l l be determined i n Phase I b u t s h o u l d i n c l u d e employment-generating small e n t e r p r i s e s f o r p r o d u c t i o n and m a r k e t i n g of r u r a l energy equipment i n r u r a l areas. Both p h a s e s a r e e x p e c t e d t o e x t e n d f o r one-and-a-half t o two years. 4. The A n t i o q u i a R u r a l Energy Group w i l l c o o r d i n a t e w i t h t h e C e n t r a l R u r a l Energy U n i t l o c a t e d i n ICEL, which w i l l a r r a n g e f o r s u i t a b l e t e c h n i c a l and f i n a n c i a l a s s i s t a n c e when r e q u i r e d .  Annex 4 Attachment AElTIOQUIA RURAL ENERGY GROUP ORGANIZATION RURAL ENERGY COORDINATION COMMITTEE FOR ANTIOQUIA . . Consisting of Senior Covernment and Private Officials i - I I RURAL ENERGY EXECUTIVE COMMITTEE Consisting of Senior - 7 1 Professionals from Various Institutions in Antioquia (e.~. ICA, SENA, DRI, FUTURA, Univcrsities) r--l RURAL ENERGY TEAMS and Demand Alternatives Infrastructure Energy raining Aeseesment I Assessment Equipment Development I PREPARATION OF A RURAL ENISRGY PLAN FOR ORIENTE I Rural Energy Pilot Project  ANNEX 5 RURAL ENERGY DEMAND AND SUPPLY SURVEYS S u p ~ e s t e dF o r m a t s  Conversion Factors f o r Gross Energy of - Mf f e r e n t Fuels t o E l e c t r i c i t y Equivalent* L I Electricity E q u i ~ lnet he1 Unit Kilocalories i n 1000 KWH E a e c t r i c i ty lo00 KWH . 860,000 I Ilung Cake Tonne 2,092,180 2.438 Other Peg e t a b l e Fuels II 2,690,190 3 .1 35 firet,ood 11 - - bnetized 4,286,560 4 995 Non b n e t i z e d 2,956,250 3. b&5 Bagasse 11 4,523,060 5.270 S o f t Coke n 5,LW, 600 6.397 Coal N 591 2,500 6.8e9 Charcoal H 6,775,670 7.896 Kerosene n r 10,978,668 12.793 C - - - -- - - -'. *(This data i s based on Indian Fuels. Indigenous data should be used, i f a v a i l a b l e ) - - Averaee Efficiency of U t i l i z i n ~Vilrious Fuels i n Rural Areas * (In Percent) I)ung Cake 11 I Vegetable Waste 12 : Firewood 15 Soft Cole 28 Kerosene bb Gas 60 Electricity 75 * (Based on experiments ccnducted i n Indian Rural Areas, Indigenous data should be used, if available) Ha. af m o n a : Amma. h c o ~ e : =gaffon CultiYation Weeding g - Ikmesting Others .- Cozzpuktion Shcet for 'Easehold: 1 Units Comrsiaa Catezorg Activities a- Form " , vsed Per Ery into M.iB Energy in E m - t 3 Efidency of Use ii12r~yr i 1 . i I C ~ t ~ u t -I l a . . L Sunanaa: 1 ( . Total P=- TO- for one year) Consumption in M (4J (mt) I 3. (a) Prop-on of Commercial Em- in E, (b) Proportion of Non-Comsrdal Ebergy in E, h. Avmage Per Capita Ehe- Used (%+No. of Persomin Household)  5 RURAL Eh'EEZCrlC W A N D SURVEP Corntation Sheet Aggregate f o r the Region: 1. Population 2. Number of Households: 3. Aggregate Annual Income: 4. Inwm Per Capita: 5. Average Per Capita E3ergp Use ( Use ( ~ v e r a g e for A l l 6. (a) Proportion of Commercial h e r = i n %o (b) h p o r t i o n of Non-Comerdal Energy i n ET0 7. Projections f o r Fnergy Dernznd for (a) Short term (5 years) (b) Long term (70 years) Assumptions : (a) Asme per capita energy use(qo)and protmrtion o f com.ercial and non- comercial energy i n 9,.on the basis of data collected during survey. (b) Assume o v e r a l l efZiciency.*of comercia1 energy use and overall e f f i c i e n c y of non-comircial energy. ,  7. R o j e c t i o n ~for Rural h a m b r a n d (cont. ) 6 b i Perlod I Period II No* Itera (5 P- ) (1 0 years) '1 Rvjacted mta o f population me. 2 Awrage population drulng the . period. 3 A o a a g e per capita energy lfse (E.po)* b Total energg Use ( (2) x 0)) 5 h p o r t i o n of cumcwrdal energy 5*. . - 6 Total Comnercial energy used. (a)x 6) ) 7 Proportion of wn-com~lsrdal enw i n %o. - 8 Total non-co~rrmerdal energy wed ((4) x (7)) . 9 ~o'& C o m e r d a l energy c o n m e d (Total connnesdal energy used . ( & a d d e d by o v e r a l l conarercial energy edficiency) TCc 10 Total non-coxmrdal enorgy consmedo (Total non-comercfal energy used (8) d i e d e d by overall non-comerdal e n e r a e f f i d e n c y ) %c- \ .+' 8. ddditio- projections using (a) different sues of FT, f o r different . . scenarios of mral development. .. (b) d i f f e r e n t values of TC, and TC o dependicg cn thm a v a i l a b i l i t y KF comnercial energy supply t o nulal areas. A suitable computer prugram ray be developed f o r this p r p o s e .  Sunrey to a s s e s s indigenow RM) c a p a b i l i t i e s for u t i l i z i n g renewable and non-renewable energy resources Fn r u r a l areas , 1. Name of the i n s t i t i t i o n : 2. Brief description o-Q ongoing a c t i v i t i e s r e l a t e d to energy: 3. Names pf s t a f f , and t h e i r p r d e s s i o n a l and acadenic q u a l i f i c a t i o n s , involved i n these a c t i v i t i e s : &. D e t a i l s of s p e c i f i c a c t i v i t i e s , if any, r e l a t e d to a l t e r n a t i v e energy resources and r u r a l energy: 5. Have any prototypes,for a c t i v i t i a s i n (b),been developed? ~t were the r e s u l t s ? hhat f u r t h e r w r k is plannsd? 6. What a r e t h e constraints, if'any, in t!e a c t i v i t i e s under (L)? I 7. Has c w r d i n a t i c n been e s t e b l i s h s d between indigene-u and foreign i n s t i t u t i o n s working on s i m i l a r problems? What kind of coordination? 8. What a r e t h e sources of funds and other resources?  Surpey t o Assess Roducticn Capabilities fcr . .. Utilizing Renewable anc! Son-Zene~able E n e r g Resources i n &a1 Areas 1. Name o f the f i r m : 2. Brief description o f size, turnover. and producuts: 3. Brief account o f design capab-tiea : (a) Availability o f design engineer (s) (b) Rraxing office Does it develop its o m &sf gas ar p r u c u , ~ s the^ fron: dutsicie? . 4 Brief account o f wchine shop and t o o l rcon: f a c i l i t i e s : 5. What type o f rarketing orgarization does i t have? 6. Interests in developing e ~ e r g -conversion y eqziprent? What will be its sources of funds? . If the finn 7 I s already ecgaged i n develop1ng ,or producf rg, energy corn-ersion equipnent, & U s o f t h e i r design acd manufacture ?  ANNEX 6 BIBLIOGRAPW  ANNEX 6 Page 1 REFERENCES y General Eher~z 1 . ''Energy I s s u e s Paper1: ( D r a f t ) , prepared f o r World Bank by Richard Barber Associates Inc., Washington, D.C., 1973. 2. "The Changing Energy Scene, 'I P.U. Note No. 7, N r l d Bank, December 19-73. 3. "Ehergy P m b l m s Pecullar to Developing C o ~ n t r i e s , 'P.U. ~ Note No. 13, World Bank, December 1974. . . 4. "Advisory Group on National Energy Policy Studies," P.U. Note No. 15, World Bank, January 1975. . 5 "mergy and Petroleum i n Non-Opec Developing Countries 1974-80, World Bank staff working paper No. 229, February 1976. 6. "Ehergy Denand Forecasting: A Review," P.U. Note No. 26, World Bank, F e b ~ a r y 1977. 7. Friedmann, Efrain, "Financing Energy i n Developing Countries," h e r g y w, March 1976. 8 Energy and w,W. H. Freeman and Co ., San Francisco, 1971 . E h e r z bnd h r a l Development 9. "Rural Development," Sector Policy Paper, World Bank, February 1975. 10. I1Ehergy f o r h r a l Development: Renewable Resources and Alternative Technologies f o r Developing Countries, " National Academy of Sciences, . Washington, D .C 1976. 11. Bhatia, Ramesh, Energy and Rural Development i n I n d i a : Some I s s u e s , Institute o f Economic Growth, Neu Delhi, September 1975. 12. Duloy, J.H. and Associates, "Agriculture and the lhergy Crisis: A Case Study i n M d c o , " Development Research Center Mscussion Papers No. 8, World Bank, August 1974. 13. Howe, J. W. and Associates, b e r m f o r the V i l l a g e s of Africa, Overseas Development Council, January 1977. 1 Jordan, R. C., llTechnical Assistance Elission on Non-Conventional Sources of Ehcrgy, Sudene, Brazil," B T Department, World Bank, Novenlbcr 1976.  ANNEX 6 Page 2 Leach, C ., E n e r m asld Food Probuctlnn, I n t e r n a t i o n a l Institute f o r Ehvironment and L)eveIopment, Washingbn, D. C., June 1975. Mdcldjani, A., Proposal f o r Demonstration P r o j e c t f o r Rural Develop- ment in India, January 1974. Makujani, A., E nmm h1S-cy f o r the Rural Plircf World, I IED, Washington, D. C., February 1976. Nathans, R., Assesing Sinall-Scale Enerw Technolodes f o r h x al Areas i n Developina Countries - A Systems Approach, S t a t e University o f New York, Stony Brook. Parikh, K ., Secorrd- India. Studies: & e r a , Macmillan Co . of India, 1976. Stout, B. A., and Downing, C. M., Selective Biployment o f - Labor and Machines f o r Agricultural Production, Monograph No. 3, I n s t i t u t e of I n t e r n a t i o n a l Agriculture, Mchigan S t a t e University, A p r i l 1974. 21. Stout, B. A , , and Downing, C. M., Agricultural blechanization Policy, Michigan S t a t e University, Febmary 1 Y (>- . Rural E l e c t r i f i c a t i o n 22. a l Village E l e c t r i M c a t i o n Pro jects,I1 P.U. Note No. 6, I1The ~ ~ p r a i s of World Bank, August 1973. 23. - . "Costs and Benefits of Rural E l e c t r i f i c a t i o n A Case Study ,in. . P.U. Note No. RES 5, World Bank, February 1925. E l SalvadorYt1 2&. I1Rural E l e c t r i f i c a t i o n , " A World Bank paper, October 1975. 25. "Appraisal of a Regional R e c t r r f f i c a t i o n P r o j e c t ( I r a n ) ,I1 IXEYA Pro- jects, World Bank, May 1975. 26. "India: Appraisal of Rural h'lectrification Fru ject,I1 South Asia Pro- j e c t s , World Bank, June 1975. 27. " h r a l E l e c t r i f i c a t i o n Study i n Selected Countries of West Afr5,cay1' EWT Department, World Bank, January 1977. 28. "Thailand: Appriasal of the Accelerated Rural E l e c t r i f i c a t i o n Project,I1 East Asia Pm j e c t s , World Bank, February 1977. 29. ?.Egypt: Regional F l e c t r i f i c a t i o n Project, WENA'P ~c t s , World Bank, je Harch 1977.  ANNEX 6 Page 3 - -- - _ - - - . C Some Bank Rural Development Prajects with Rural E l e c t r i f i c a t i o n Components 30. "Appraisal of the I n t e g r a t e d Rural Devehpment Project 1 Basin Kexico, " LAC P m j e c t s , World Bank, September 1974. - Papaloapan 1 i wThailand. Appraisal of the Northeast k r a l Development Proj ect, EAP P m j e c t s , World Bank,. December T975. 32. "Korea Appraisal o f ' Rural I n f r a s t r u c t u r e Project, * EAP P r o j e c t s , World Bank, February 1976. 33. "Identification Misston f o r p a r a i b a Rural Development P r o j e c t Back-to-Office Report o f D. Anderson, DPS, World Bank, May 1976. Brazil," - &. llColombia I n t e g r a t e d Rural Development Pmj e c t , LAC PFoj e c t s , World Bank, November ,1976. Alternative Sources of b e r m f o r Rural Areas 35. Eckholm, E., The Other Ehergy Crisis : Erewood, Worldwatch Paper No. 1, September ,1975. 36. Earl, D., llForest Energy and Economic Development, " i n t h e Journal of Ehergy and Development, sprfng 1976. 37. "Forestry - Sector Policy Paper," (Draft Outline), CPS, World Bmk, November 1976. 38. "Wood f o r k e f g y , (Draft paper), CPS, World Bank, A p r l l 1977. 39. IfRuanda: I d e n t i f i c a t i o n o f a P o t e n t i a l Fores txy Project, " Back-to-Office Report by J. Spears, CPS and N. R. Brouard, EAPAG, World Barilc, January 1977. LO. "The Uses of Wastes f'or Agricultural Development, 'I Voorhoeve, J., (personal views), Policy Planning and m e r a m Review Department, World Bank a 1976. &I . llSolar Energy Briefing January 1977. NO te, " Fallen-Bailey, D., EWT, World Bank, &2. Sathianathan, M., Ho-Gas Achievements and Challenges, Associa t i o n of Voluntary Agencies f o r b r a 1 Development, Nw Delhi, June 1975. e 43. Potrcr P r o j e c t s , United Nations Development of ~ 3 . n i - ~ ~ d r o c l e c t & Economic and S o c i a l Cow~cil, Second Session a t E3ah&ok, October 1975. 44. " C r i t i c a l Factor8 i n Economic EvaluatAon o f Small Decentralized Ehergy ~ ~ Note No. 25, EWT Department, World Bulk, Decmber 1976. P r o j e ~ t s ,P.U. 5 . Pari!ch, J., Assessment of Solar Application f o r Tr'msfcr of T c c h n o l o ~ , IIASA, Vienna, 1 977.  ANNEX 6 Page 4 S e l e c t e d L i t e r a t u r e on Colombia From Colombia: E l e c t r i f i c a c i o n Rural Produccion o Consumo Movimiento Colombiano d e Reconstruccion Rural, Conferencia L a t i n o Americana d e E l e c t r i f i c a c i o n Rural, 1973 P l a n Nacional d e E l e c t r i f i c a c i o n Rural, Informe F i n a l , ICEL, 1973 Memoria y Proyecto d e E l e c t r i f i c a c i o n Rural, Vereda "Dominguillo", Santader d e Quilichao, D i v i s i o n d e D e s a r r o l l o R u r a l , Seccion d e I n f r a s t r u c t u r a , ICA, 1974 Produccion, T r a n s f e r e n c i a y Adaptacion d e Tecnologia I n d u s t r i a l , Facultad d e I n g e n i e r i a , Universidad d e Los Andes, 1974 La E l e c t r i f i c a c i o n e n Colombia, informe 1976-75, ICEL Un Modelo d e E c o d e s a r r o l l o y d e Asentamiento Humano p a r a l a Orinoquia Colombians, Las Gaviotas, 1975 Informe Economico, Departamento d e Antioquia, Banco d e l a Republics, 1976 - Bank: The Development of colombian A g r i c u l t u r e , May 1974, Report 91-Co Appraisal of t h e Second A g r i c u l t u r a l C r e d i t P r o j e c t , Colombia, Report No. 1248-Co, November 1976 Economic P o s i t i o n and P r o s p e c t s of Colombia, Vol. I and 11, Report No. 1548-Co, May 1977 Colombia: A p p r a i s a l of t h e Second Small-Scale I n d u s t r y P r o j e c t , 1512b-Co, May 1977 Colombia: A p p r a i s a l of an I n t e g r a t e d N u t r i t i o n Improvement P r o j e c t , August 1977 Others: Report of a s h o r t mission t o t h e "Centro d e D e s a r r o l l o I n t e g r a d o Las Gaviotas", Colombia, September-October 1976, Harry Dickenson and J a n Neggers, Eindhoven, December 1976.