ESM307 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances A ~~~~~~~~~~ ~~~~~~~~~~~~~~A Report Energy 307/05 Sector August Management Assistance Programme IE$1AAAD hJIII 11 JOINT UNDP / WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOSE The Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) is a special global technical assistance program run as part of the World Bank's Energy, Mining and Telecommunications Department. ESMAP provides advice to governments on sustainable energy development. Established with the support of UNDP and bilateral official donors in 1983, it focuses on the role of energy in the development process with the objective of contributing to poverty alleviation, improving living conditions and preserving the environment in developing countries and transition economies. ESMAP centers its interventions on three priority areas: sector reform and restructuring; access to modern energy for the poorest; and promotion of sustainable energy practices. GOVERNANCE AND OPERATIONS ESMAP is governed by a Consultative Group (ESMAP CG) composed of representatives of the UNDP and World Bank, other donors, and development experts from regions benefiting from ESMAP's assistance. The ESMAP CG is chaired by a World Bank Vice President, and advised by a Technical Advisory Group (TAG) of four independent energy experts that reviews the Programme's strategic agenda, its work plan, and its achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank to conduct its activities under the guidance of the Manager of ESMAP, responsible for administering the Programme. FUNDING ESMAP is a cooperative effort supported over the years by the World Bank, the UNDP and other United Nations agencies, the European Union, the Organization of American States (OAS), the Latin American Energy Organization (OLADE), and public and private donors from countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom, and the United States of America. FURTHER INFORMATION An up-to-date listing of completed ESMAP projects is appended to this report. For further information, a copy of the ESMAP Annual Report, or copies of project reports, contact: ESMAP c/o Energy and Water The World Bank 1818 H Street, NW Washington, DC 20433 U.S.A. Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances August 2005 Elizabeth Cecelski Ahmed Ounalli Moncef Aissa Joy Dunkerley Energy Sector Management Assistance Program (ESMAP) Copyright ©C 2005 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing August 2005 ESMAP Reports are published to communicate the results of ESMAP's work to the development community with the least possible delay. The typescript of the paper therefore has not been prepared in accordance with the procedures appropriate to formal documents. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The Boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the ESMAP Manager at the address shown in the copyright notice above. ESMAP encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Table of Contents ACKNOWLEDGMENTS ................................................................. VII ABBREVIATIONS AND ACRONYMS .................... ............................................. Ix UNITS OF MEASURE ................................................................. x CURRENCY EQUIVALENTS ................................................................. X SUMMARY ................................................................. I Main Program Features ................................................................. 2 Country Overview ................................................................. 3 A BRIEF HISTORY OF ELECTRIFICATION .................................. ............................... 5 Initial Expansion into Rural Areas ................................................................. 6 Intensified Rural Electrification ................................................................. 7 NATIONAL COMMITMENT TO RURAL ELECTRIFICATION ...................................................... 9 Three Pillars of Rural Development ............................... .................................. 9 Integrated Investments ................................................................. 10 Socioeconomic Synergies ................................................................. 12 EFFECTIVE INSTITUTIONAL STRUCTURE ........................................... ...................... 17 Characteristics of an Effective Institutional Structure ....................... ........................... 17 Achievements and Challenges ................................................................. 22 EFFECTIVE AND EFFICIENT OPERATIONS AND PRACTICES ..................... ............................ 23 Operational Characteristics for Success ................................................................. 23 Successful Project Implementation and Construction ....................... ........................... 26 Analysis of Customer Service: Problems and Solutions .................. ........................... 30 ROBUST FINANCIAL ARRANGEMENTS ................................................................. 33 Financing Grid Expansion ................................................................. 33 Sustainable Financial and Tariff Strategies ................................................................. 34 Economics and Financing of PV Systems ................................................................. 37 COST-CUTTING TECHNICAL INNOVATIONS ................................................................. 39 Commitment to Customized Solutions ................................................................. 40 Steps Toward MALT: Technical and Economic Decision-making .............................. 40 The MALT Advantage ................................................................. 44 iii Solutions for Large-motor Productive Uses ................................................................. 45 Continuing Tradition of Cost- reducing Technical Innovation ..................................... 47 PHOTOVOLTAICS: COMPLEMENTARY STRATEGY FOR ISOLATED USERS .......... .................. 51 Coordination with Grid Systems and Institutions ......................................................... 51 Well-tested Technical and Social Feasibility ................................................................ 53 National and International Financing ........................................................................ 54 User Needs and Training .................... .................................................... 55 Maintenance and After-sales Service ........................................................................ 55 Electrifying Villages in Siliana Govemorate: A Case Study ........................................ 56 LESSONS IN INTEGRATED RURAL DEVELOPMENT AND SOCIAL EQUITY .......... .................. 59 National Commitment in a Multisector Development Context .................................... 59 Effective Institutional Structure and Coordination ....................................................... 60 Utility Transparency and Innovation .......................................................... 60 Effective Tariff Policy ........................................................................ 61 Complementary PV Strategy ............................. ........................................... 61 Challenges Ahead ........................................................................ 62 APPENDIX 1 ......................................................................... 65 DAILY ACCOUNTS, BILLING, AND RECEIVABLES OF LOW-VOLTAGE CUSTOMERS: BTJ SOFTWARE APPLICATION ........................................................................ 65 APPENDIX 2 ....................................................... 67 AVERAGE RATE OF NATIONAL VALUE-ADDED, BY ITEM OF LOCAL ELECTRICAL SYSTEM EQUIPMENT ........................................................................ 67 APPENDIX 3 ........................................................................ 69 EXAMPLE OF MALT COST REDUCTION, BASED ON STEG PRICES ............ ........................ 69 SELECTED READINGS ........................................................................ 71 List of Tables Table 2.1 Evolution of Tunisia's Rural Electrification Program, 1972-2001 ................... 6 Table 3.1 PRD Investments by Sector, 1997-2000 ....................................................... 11 Table 5.1 Comparison of STEG's Unpaid Bills, 1990 and 1997-98 ............................... 30 Table 6.1 Average Electricity Price (Excluding Taxes) by Consumer Group, 1994-99 (millimes* per kWh) ....................................................................... 35 iv Table 6.2 Electricity Tariffs (Excluding Taxes), 2001 .................................................... 36 Table 6.3 Trends in Low-voltage Household Tariff, 1991-2001 (millimes/kWh) ......... 37 Table 7.1 ADB Tunisian Loan Targets and Achievements, 1979-89 ............................. 39 Table 7.2 Estimated Savings of MALT System, Compared to Three-phase Distribution System, 1975 ............................................................. 42 Table 7.3 STEG's Switch to the MALT System: Typical Obstacles and Solutions ........ 42 Table 7.4 Length of Three-phase and Single-phase MV Overhead Lines, by Planning Period ............................................................. 44 Table 8.1 Financing Tunisia's PV Rural Electrification Program ................................... 54 Table 8.2 Cost And Lifetime of PV System Components, 2000 ..................................... 54 Table 8.3 Installed PV Systems, by Component and User Type ..................................... 57 Table A3.1 Summary of Cost-comparison Study Results ............................................... 69 Table A3.2 Summary of Cost-cutting Distribution, by Item Groups .............................. 70 List of Figures Figure 1.1 Tunisia's Rural Electrification Coverage, 2000 ............................................... 2 Figure 4.1 Key Institutional Relationships in Rural Electrification Planning, 2001 ....... 19 Figure 5.1 STEG Organizational Chart .............................. ............................... 24 Figure 7.1 Total Line Cost (Materials and Labor) and Cost Savings for Three-phase and Single-phase Configuration in Various Countries ............................................................ 45 Figure 8.1 ANER Organization Chart ......................... .................................... 52 List of Boxes Box 3.1: Survey Reveals Tunisians' Perceived Benefits of Rural Electrification ............ 13 Box 7.1: Adopting the MALT System: Key Technical Decisions ............... .................... 40 v Acknowledgments This study, financed by the Energy Sector Management Assistance Programme (ESMAP), was carried out by a team of four consultants: two international (Elizabeth Cecelski and Joy Dunkerley) and two Tunisian from the Tunisian Electricity and Gas Company, known as STEG (Ahmed Ounalli, Directeur, Groupe d'Etudes Strategiques; and Moncef Aissa, Chef de D6partement Adjoint, Departement Planification R6seau Distribution). Staff members of STEG and the National Agency for Renewable Energy (ANER) participated actively and effectively in all phases of the study, preparing background reports and reviewing drafts. The authors are particularly grateful to Raouf Maalej, Anis Besbes, and Radhouane Masmoudi of the STEG Distribution Directorate and to the STEG District Chiefs and offices for their valuable contributions and comments. The authors would also like to thank Neji Amaimia and Amor Ounalli of the ANER for their analysis of Tunisia's photovoltaic (PV) experience. Thanks also go to N. Hammami for his comments and the ANER office in Kef, particularly M. Njaimi, for field assistance. Ahmed Ounalli and Moncef Aissa, who carried out the rapid rural appraisal, wish to thank Sawsen Chaieb for her contribution to the field study design and analysis and the social assistants of the Family Planning Service, who graciously shared their long experience with rural Tunisian families with the authors. The authors wish to thank Gerald Foley and Robert van der Plast for reviewing earlier drafts of this study, and Allen Inversin of the National Rural Electric Cooperative Association (NRECA) for his useful insights and comments. Finally, we are grateful to Douglas Barnes (ESMAP) at the World Bank for initiating this case study as part of his larger study on rural electrification best practices and for giving us the opportunity to work together. Nidhi Sachdeva (ESMAP) formatted this report and Marjorie K. Araya (ESMAP) coordinated the production process. vii Abbreviations and Acronyms ADB African Development Bank ANER National Agency for Renewable Energy (Agence Nationale des Energies Renouvelables) BTJ Basse Tension Journaliere CGDR General Regional Development Commissariat (Commissariat General de Developpement Regional) CNER National Rural Electrification Commission (Commission Nationale d 'Electrification Rurale) CSFP Sectoral Center for Professional Training (Centre Sectoriel de Formation Professionnelle) EdF Electricite de France EGA Algerian Electricity and Gas Company EU European Union FSN Fund for National Solidarity (Fonds de Solidarite Nationale) GDP gross domestic product GNP gross national product GTZ German Agency for Technical Cooperation (Deutsche Gesellschaft fur Technische Zusammenarbeit) HV high-voltage LV low-voltage MDE Ministry of Economic Development (Ministere du Developpement Economique) MI Ministry of Industry NGO nongovernmental organization PAC Pre-stressed Armored Concrete PDRI Regional Integrated Development Program (Programme de Developpement Rural Integr6) PP Presidential Program (Programme Presidentiel) PRD Regional Development Program (Programme Regional de Developpement) PSC Personal Services Code PV photovoltaic STEG Tunisian Electricity and Gas Company (Societe Tunisienne de l'Electricite et du Gaz) SWER Single-Wire Earth-Return USAID United States Agency for International Development ix Units of Measure ha hectare hp horsepower kVA kiloVolt Ampere kWh kilowatt hour mm millimeter MTD millions of Tunisian Dinars Mtoe million tons of oil equilavent MV medium-voltage MW megawatt VA Volt Amperev Currency Equivalents Tunisia's national currency is the Tunisian Dinar (TD). The TD's evolution against the US dollar is as follows: 1975 0.366 1980 0.381 1986 0.796 1990 0.882 1995 0.946 2000 1.274 x Summary 1.1 When Tunisia's rural electrification program was launched in the mid-i 970s, only 30,000 (6 percent) of the country's rural households were electrified, even though half of the population lived in rural areas. At that time, rural electrification became the third pillar in an integrated rural development drive that also emphasized basic education and improved health services. 1.2 The Government of Tunisia has made rural electrification a top priority in its social and economic development plans, as evidenced by investment of more than 450 million Tunisian Dinars (MTD) between 1977 and 2000, most of it provided by the national government. 1.3 The Tunisian Electricity and Gas Company (Soci&e Tunisienne de /'Electricite et du Gaz), known as STEG, has been the primary implementer of rural electrification. Considered a model enterprise, this public utility's high level of human and technical competence has allowed it to introduce efficient commercial, computer, and other technological innovations. These have included the MALT (Mise A La Terre) three- phase/single-phase distribution system, which has dramatically reduced costs, enabling connection targets to be exceeded repeatedly. Overall system losses of 13.4 percent (3.1 percent of them nontechnical) compare favorably with the utilities of developed countries. 1.4 Since 1975, more than 600,000 rural connections have been made, 7,700 with 50- 100 watt, solar photovoltaic (PV) systems. By the end of 2000, 88 percent of rural households and nearly 95 percent of all households had been electrified (figure 1.1). The current goal is to achieve, by the year 2010, 97 percent household grid connection and 3 percent PV service. 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Figure 1.1: Tunisia's Rural Electrification Coverage, 2000 lf-k..I-Nr c* 1jj.1 -F L llIIA ' ) II*is :~ t'sJr I. .[r I. - AE? WITH FLFCTRICITY REGIONS along with the establishment of schools, clinics, roads, and public lighting system,, Maulin inProgra Feeaturentsynris o6eTeduili popicies,eron ia with sb tantil S inngtr f andu y epIch sport fo verura greatly from STEG's long-termn marginal costs. Low-consumption and agricultural users have benefited from subsidized tariffs. Summary 3 1.7 As Tunisia rapidly approaches total rural electrification, the following challenges have emerged: * While rural-electrification planning, implementation, and management are highly decentralized, democratization of Tunisian society is creating pressure for greater consumer participation in electricity decision-making, including better communication between the utility and its customers. * Although STEG's finances have remained healthy to date, future generation costs are expected to rise, reflecting higher oil prices; moreover, connection and maintenance costs will increase as residents in more remote areas are connected to the grid. * The favorable arrangements for STEG's gas purchases, which financed electricity-sector operating deficits in the past, are changing; future contributions will rely more on revenue from electricity operations. * The MALT distribution system, which has proven highly cost-effective and appropriate to date, may require reinforcement and conversion to meet increased rural demand and to encourage demand growth and rural development and employment. * As the final 12 percent of Tunisia's rural population (70,000 households) is electrified, the respective roles of grid electrification and PV technologies and institutions will require better clarification and coordination. 1.8 As market saturation approaches, the question arises: How can STEG's accumulated technical expertise and external contractors and suppliers be maintained and used, perhaps through technical assistance, to assist rural electrification programs in other African nations? The many factors that contributed to STEG's success-strong government policy and financial commitment, gender and social equity, institutional esprit de corps, technical innovation, and uniquely enabling political and economic conditions-are lacking in many other African countries. Nonetheless, the STEG experience can provide useful lessons-even in unpromising situations-in terms of adaptive technology, robust finances, and an open and transparent system for selecting villages for electrification. Country Overview 1.9 The smallest country in North Africa (164,500 sq km), Tunisia is situated at the northernmost point of the African continent. Bounded by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east, the country is divided into well-watered northern and semi-arid southern regions by the Atlas Mountains. The north features lush vineyards and dense cork forests (northwest); fertile grasslands (north- central); and livestock, citrus fruits, and garden produce (northeast), from the capital city of Tunis to Cap Bon. 1.10 Toward the south, mountains give way to a central plateau, which gradually descends to date-palm oases and low-lying salt lakes, known as "chotts." In the extreme south, the chotts merge into the vast Sahara Desert, which comprises 40 percent of the 4 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances country's land area. The Medjerda River, the country's only major river system, originates in Algeria, emptying into the Gulf of Tunis. 1.11 A mild Mediterranean climate dominates the north and central regions, while the Saharan south is hot and dry. Average annual precipitation varies from 420 mm in the north, to 900 mm in the Atlas Mountains, to less than 350 mm in the southern desert. Only 20 percent of land is arable; 4 to 9 percent consists of forests and woodlands; 20 percent is pasture land; and 13 percent is under permanent crops. 1.12 Nearly two-thirds of Tunisia's 9.7 million people live in urban areas. The ethnic majority is of mixed Arab-Berber origin. The major religion is Islam, and most people are bi-lingual in French and Arabic. 1.13 Tunisia's public health system provides free or highly subsidized health care to some 50 percent of its citizens. Life expectancy is 74 years, infant mortality is 29 per 1,000 live births, and primary school enrollment is 97 percent. Tunisia has good roads and telecommunications networks. 1.14 About 85 percent of water resources is used for agriculture. Nearly 350,000 hectares (ha) are irrigated, and 80 percent of rural households has access to potable water; however, studies show that, if current trends persist, water supply will be insufficient to meet growing demand by 2015. 1.15 The country has 23 regional governments or Governorates, which are further divided into Delegations. Its legal system is based on French civil law and Islamic law. Tunisia is a lower middle-income country, with a per-capita GNP of US$2,060 (1999) and a GDP of $22 million (1998). Economic growth averaged 7 percent in the 1970s, 3.5 percent in the 1980s, and 5 percent in the 1990s. Principal economic activities are tourism, industry, and agriculture. About 33 percent of the 2.5 million labor force is in agriculture, with 25 percent (including 650,000 women) in industry. Foreign trade is increasingly important, especially with the European Union (EU); exports and imports total about 43 and 46 percent, respectively, of GDP. Major exports include chemicals, crude oil, and textiles. 2 A Brief History of Electrification 2.1 Electricity generation in Tunisia began in 1902, when a French concessionaire that was already providing gas installed the first power plant to service the capital city of Tunis. Other French companies rapidly followed suit, constructing power plants in the cities of Sousse (1905), Sfax (1907), Ferryville (1909), and Bizerte (1911). On the eve of Tunisia's independence from France, in 1956, seven concessionaires controlled the country's electricity generation and distribution. The largest of these was the CTET (Compagnie Tunisienne d 'Electricite et de Transports) established in 1952, which serviced Greater Tunis and parts of the Northwest. The concessionaires designed their own networks and produced their own electricity or subcontracted producers to maximize profitability of their concession areas and duration of their respective contracts. This resulted in companies sacrificing long-term interests for short-term profitability, making few investments in infrastructure, and alleviating shortages with uncertain solutions. 2.2 CTET owned Goulette, Tunisia's oldest and most powerful steam thermal power station (57 MW in 1952). FHET (Forces Hydroelectriques de Tunisie), the country's second largest concessionaire, created in 1952, was responsible for hydroelectric power plants in Ben Metir and Neber in the Northwest. Other companies, which mainly generated diesel, distributed electricity to various cities and urban areas, including B6ja, Bizerte, Gabes, Gafsa, Medenine, Sousse, Sfax, Tozeur, and Zarzis. In addition, Tunisia imported electricity from the Algerian Electricity and Gas Company (EGA), which also had interests in FHET. The network consisted of the interconnection with Algeria and the connection between hydroelectric plants in the Northwest and Greater Tunis. 2.3 After independence, the Government of Tunisia initiated a general policy to nationalize key economic activities, including electricity and gas, water, railroads, and banks. In 1958, it temporarily took control of the concessionaires, replacing CTET and the other companies with management committees. On April 3, 1962, the Government nationalized electricity generation and electricity and gas transport and distribution. These activities were entrusted to the STEG, a public utility. At that time, only 26 percent of Tunisian households had access to electricity. 2.4 In the decade that followed, owing to rapid growth in domestic customers and initial extension of the grid into rural areas, electricity consumption increased at a pace of 11.5 percent. STEG concentrated its efforts on rationalizing the system it had inherited from the concessionaires. Electricity generation and transport were developed to meet the demand of new industrial projects, such as El Fouledh steelworks, and the textile 5 6 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances industry. In 1965, Goulette 2 was installed, including four groups of 27.5 MW each. In 1972, a power plant was built in the southern city of Ghannouch, which included two groups of 30 MW each and a 15-MW gas turbine. Part of the electricity thus generated was used in Gabes' new industrial units and the rest was transported to other regions through a newly looped system. Electricity generation in Baves was favored through exploitation of flared gas in the southern region (El Borma oil field associated gas) and construction, in 1972, of a gas pipeline connecting the oil field with the Gabes area. 2.5 With assistance from the French utility, EdF, and the pro-active education policy of the Tunisian government,' STEG developed a cadre of highly qualified technicians and engineers. By the mid-1970s, it had established sound business practices and financial sustainability achieved through tariffs related to marginal costs. Only 37 percent of all Tunisian households had access to electricity. Although 50 percent of all households were located in rural areas, only 6 percent (30,000 households) had access. Initial Expansion into Rural Areas 2.6 Having strengthened its electricity generation and transport capacity, the Govermment became increasingly concerned about the exodus from rural areas caused by lack of public services. In 1973, within the context of its mandate to electrify the nation, STEG undertook a technical audit of distribution, with assistance from Hydro-Quebec. 2.7 Taking into account the Government's ambitious goals, the country's low levels of rural energy consumption, and the State financing that would be required, the audit recommended studying a new, low-cost means of electricity distribution that used three- phase/single-phase lines. Based on the North American model, this system was known in Tunisia as the MALT. Although controversial, the recommendation was confirned by technical and economic studies conducted for the Master Plan for Distribution in 1974- 1975, which estimated savings of 18 to 24 percent using the MALT system. In 1976, the technical decision was made to begin converting to the new system, using three- phase/single-phase lines and 30 kilovolts (kV). On this basis, the Planning Ministry, together with STEG, set rural electrification goals that were incorporated into the Vth Plan (1977-81) and subsequent Five-year Plans (table 2.1). Table 2.1: Evolution of Tunisia's Rural Electrification Program, 1972-2001 Five-year Plan IVth Vth Vlth VIlth Villth IXth Factor (1972-76) (1977-81) (1982-86) (1987-91) (1992-96) (1997-2001)' Total investment (MTD) 29 52 105 130 134 No. of new connections 30,000 70,000 80,000 114,000 180,000 135,000 Cumulative l During the 1970s, 30 percent of Tunisia's national budget was allocated to education. A Brief History of Electrification 7 connections 100,000 180,000 294,000 474,000 609,000 Rural electnfied (%) 6 16 28 48 75.7 88.1 Total electrified (%) 37 56 69 81 90.0 94.9 No. of households electrified with PV systems2 3,9193 3,838 i Implemented through the year 2000. 2 pV programn adds about 1 percent to rural electrification coverage. 3Cumulative through the Vlllth Plan. Source: STEG reports. 2.8 The Vth Plan (1977-81) allocated Government funds for system expansion and identified villages to be electrified, based on lowest-cost criteria. STEG's main emphasis was on converting the existing distribution system into the MALT system. During this period, 70,000 rural households were connected, and investment costs were fully recovered. During the VIth Plan (1982-86), 80,000 rural households were connected. Savings from the new distribution system made it possible to connect an additional 10,000 households under the same budget, raising the rate of rural electrification to 28 percent. Intensified Rural Electrification 2.9 For the VIIth Plan (1987-91), the Government, for the first time, mobilized external funding sources-African Development Bank (ADB), Kuwait Fund, and French Development Agency (ADF) (Agence Fran,aise de D&veloppement)-with which to launch a more intensive phase of rural electrification. From 1987 to 2000 (VIIth, VIlIth, and IXth Plans), 114,000, 180,000 and 135,000 households, respectively, were connected, raising the rate of rural electrification from 28 percent in 1986 to 88 percent in 2000. Since 1977, 609,000 households have been electrified, and the current goal is to achieve total electrification of the country by 2010. 2.10 Recognizing that remaining unelectrified rural households would be scattered throughout increasingly remote areas, the National Agency for Renewable Energy (ANER), in 1990, launched a PV program, which has already electrified about 1 percent of rural households (7,750 households). 2.11 Tunisia's achievement of 100 percent urban and 88 percent rural electrification is all the more remarkable because the country strictly defines rural electrification as connections outside incorporated areas and rural population as only the population outside incorporated villages and towns). Tunisia's rural population, which represents 35% of the country's total population, is highly dispersed and isolated, with long 8 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances distances between small groups of often scattered houses. By contrast, many other developing countries with high rates of electrification define many population groups as rural that, in Tunisia, would be considered uirban. Moreover, in Tunisia, every household in an electrified village or hamlet receives a connection and wiring, sometimes with the assistance of other households in the village, contrary to other countries, where only a few households in an "electrified" village may be connected. The highly scattered nature of rural households, as well as the goal of all households in an area receiving a connection, have strongly influenced the country's rural electrification program-its costs and choice of institutional set up, distribution system, and technology. 1 3 National Commitment to Rural Electrification 3.1 Tunisia's achievement in rural electrification has been rooted in a strong national commitment to integrated rural development, gender equity, and social equality. Investment in rural electrification reflects the Government's long-standing integrated rural-development and modernization strategy, which has sought to raise the living standard of rural Tunisians, promote security in outlying regions, and moderate urban growth. These integrated investments have had a synergistic effect that has greatly benefited rural people's lives. Three Pillars of Rural Development 3.2 Rural development was initiated under Tunisia's IVth Five-year Plan (1972-76), based on three pillars: * basic education (including education of both girls and boys), * improved health services (including family planning), and * rural electrification to support the above two elements and rural development. 3.3 These goals were progressively complemented by other development programs, including roads and telephone networks, improved housing, and promotion of rural economic activities. 3.4 Underpinning these goals, since its independence from France in 1956, Tunisia has been at the vanguard of promoting human resources development in the region. This policy has included both women and men. Basic Education 3.5 Before national independence, most Tunisian women were illiterate; even the most advantaged only had an elementary level of education. Even by the 1960s, female university graduates numbered only about 100. Nonetheless, women participated actively in the struggle for national independence. This was perhaps a factor in the keen personal interest of Tunisia's first president, Habib Bourguiba, in promoting women's rights. Immediately following independence, on August 13, 1956,2 a Personal Services Code (PSC) was promulgate. Among its other provisions, the PSC abolished polygamy, instituted judicial divorce, gave women the right to vote, and set a minimum age of 17 for 2Tunisia now celebrates August 13 as National Women's Day. 9 a 4 Effective Institutional Structure 4.1 Tunisia's rural electrification program, in which the public sector plays a dominant role, benefits from an institutional structure that has proven highly effective in achieving rapid connection rates. An iterative five-year planning and implementation process balances economic and social criteria and imposes financial, target-driven discipline on rural development projects, including rural electrification. The system is characterized by centralized planning, with major regional and subregional inputs and initiatives, all within the framework of a comprehensive rural development program. Characteristics of an Effective Institutional Structure 4.2 Three major features give the institutional structure unity of direction and action: * well-defined agency roles and mandates, * official coordinating body and supplemental agency coordination, and * planning and implementation processes that guarantee continuous interaction between agencies. 4.3 Clear criteria govern project selection; they provide cooperating institutions unambiguous guidelines, which are instrumental in facilitating closely coordinated policymaking and implementation. Because all cooperating agencies are aware of the criteria governing the process, they can focus on efficient implementation. Agency Roles and Mandates 4.4 That Tunisia has multiple institutions involved in developing and implementing its rural electrification program may, at first glance, appear unwieldy. However, each agency has a clearly defined role and mandate. National Policy and Planning 4.5 The MDE, in collaboration with its specialized agencies, including the General Regional Development Commissariat or CGDR (Commissariat GeWneral de Developpement Regional), defines overall rural development policy, which provides the framework for rural electrification. The MDE is charged with disbursing a share of national revenue to subsidize rural electrification projects in a cost-effective, equitable way. It mobilizes finances, and divides the national budget for rural development between the regional governments and implementing agencies. Both the PDR and the PDRI are housed within the MDE. 17 18 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances 4.6 The MI develops Tunisia's energy policy. It is responsible for supervising the various branches of the energy sector: hydrocarbon exploration and production; refining and distribution of petroleum products; and production, transport, and distribution of gas and electricity. As part of its mandate, the MI houses the National Rural Electrification Commission or CNER (Commission Nationale d'Electrification Rurale), has supervisory authority over STEG, and provides input into the five-year planning process. 4.7 The Special Presidential Fund and FSN (two separate funds comprising the PP), help finance rural electrification projects whose costs exceed the ceiling established under the five-year planning process. 4.8 STEG, as the national electric utility, is responsible for electricity generation, transmission, and distribution, as well as natural-gas transport and distribution. Although it falls within the MI's jurisdiction, STEG enjoys considerable autonomy in practice, especially in technical matters. However, broader social decisions, such as tariff changes, are made in consultation with the MI. 4.9 ANER, under the administrative supervision of the Ministry of Environment, promotes energy conservation and development of renewable energy. Regional and Local Planning and Implementation 4.10 The Governorates, in their role as regional executive agencies of the Ministry of the Interior, are charged, together with their Delegations, with selecting rural development projects, including rural electrification projects, and allocating funds disbursed from the national budget, in addition to their own resources. The Governorates also oversee the timely and efficient completion of projects. Thus, they and their Delegations provide, at an official level, primary regional and local input into project selection and design. In identifying rural electrification projects in their respective jurisdictions, the Delegations also consult with Oumdas (leading citizens who act as spokespersons for local interests). 4.11 STEG is responsible for implementing the major part of the rural electrification program-that based on grid extension. It maintains a regional organization that parallels the Govemorates. Thus, STEG districts largely coincide with Governorates, facilitating regular consultations between the two bodies. STEG is the direct counterpart of the Govemorates in rural electrification projects. As a statutory Government corporation, established by Decree Law No. 62-8 of 1962 on nationalization, STEG is responsible not only for grid-based rural electrification projects, but for the entire electricity sector, including generation, transmission, distribution, and export, as well as distribution of gas under the MI's supervision. 4.12 ANER undertakes PV-based rural electrification projects that aim to connect households remote from the grid. Although much of its activity is centered at its Tunis headquarters, ANER has offices in the three regions where it implements the most projects: El Kef, Sidi Bouzid, and Gabes. Effective Institutional Structure 19 Agency Coordination 4.13 Recognizing the many institutions involved in rural electrification, considerable effort is made to ensure their coordination. At policy and implementation levels, coordination is achieved both institutionally and systemically (figure 4. 1). Figure 4.1: Key Institutional Relationships in Rural Electrification Planning, 2001 MINISTRY OF INDUSTRY MINISTRY OF ECONOMIC National Commission DEVELOPMENT For Rural Electrification i | PDR-PDRI E ~CGDRr GOUVERNORAT DELEGATION I-STEG DISTRICT |ANER REGIONAL OFFICE Presidential Fund ANER CENTRAL OFFICE National Solidarity Fund | STEG CENTRAL OFFICE 4.14 The CNER, a coordinating body chaired by the MI's Director of Electricity and Gas, includes representatives of STEG, ANER, MDE, Ministry of Environment, Ministry of the Interior, and FSN. Through regular meetings, CNER keeps members informed of rural electrification activities implemented throughout the country. It provides a forum where policymaking, planning, and implementing agencies can exchange views and identify problems. 4.15 Though useful, the CNER cannot handle the broad range of issues that arise during a major program's planning and implementation. Therefore, Tunisia supplements CNER's coordination work with continuous interaction-both horizontal and vertical- between agencies. For example, when the Five-year Plans are being formulated to arrive at targets consistent with available financial and technical resources, two-way communication is continuous between the MDE, MI, STEG, ANER, and CNER. Similarly, at the regional level, the Governorates interact continuously with STEG districts and ANER offices during program execution. 4.16 The program contents of the Five-year Plans are also developed iteratively through two-way communication between central and regional authorities. In fact, the first estimate of rural electrification projects within the overall rural development budget, established by the MDE, originates at the subregional (Delegation) level. Far from being 20 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances entirely top-down, the process incorporates a substantial amount of bottom-up content, at least at the official level. 4.17 The dynamics of this coordination are reflected throughout the planning and implementation process, discussed below. Planning and Implementation 4.18 During most program years, more villages or households wish to be electrified than there are funds available to do so. It is therefore important to ensure that rural electrification planning is open and objective and uses clearly-defined criteria to rank villages and households for connection. Clear criteria respond to concerns about social justice or fairness, reduce local political pressure to "jump the queue," and allow for a more rational and economic, long-term electrification program. They also facilitate project planning and implementation by eliminating potential contention between cooperating agencies. 4.19 Because Tunisia's rural electrification program is integrated into the rural development programs of the Economic and Social Development Five-year Plans, it shares many features of other rural development projects. The project-selection process underscores rural electrification's role as an agent of rural development. For example, rural electrification plans and targets are made publicly available so that progress can be monitored and assessed. 4.20 The first step in project selection is to identify and prioritize regions to be included in the rural development program. This is done in three stages: 1) choosing the zone (local district), 2) selecting the beneficiaries within the chosen zone, and 3) identifying projects for rural electrification. At all three stages, exchange of information and subsequent adjustments to plans can be observed. STEG Site-selection Process 4.21 The STEG program, which accounts for more than 90 percent of connections, uses a two-step process for site selection. First, within the framework of the current Five- year Plan, the MDE identifies the Delegations or zones to include in the rural development program. Selection is based on such criteria as income level and other economic and social indicators, unemployment, environmental quality, gender status, expected rate of return from projects, and costs of job creation and improved living conditions. Second, potential projects are identified within the Delegations and zones selected in the first step. The Governorate asks the Delegations to list all non-electrified agglomerations.5 Potential sites for electrifying agricultural pumping and water drilling in the Delegations are also identified. This list is compiled in collaboration with the local Oumdas. 4.22 Next, STEG district offices in each Governorate review this list in detail. They make site visits to verify the information provided by the Governorates and collect additional data, including length of needed medium voltage (MV) and low-voltage (LV) 5 The term agglomeration is defined as a minimum of 10 households or adjacent households no more than 200 m apart, built with walls and roofs of permanent materials. Effective Institutional Structure 21 lines available, as well as number of transformers and housing units suitable for electrification. This information is then mapped onto the existing grid. 4.23 In this way, a database of economic and technical information is constructed for each STEG district. This information is processed in STEG's computer-driven economic feasibility model in order to evaluate the investments per project or grappe (several projects served by the same medium-tension [MT] line). STEG headquarters then estimates costs, based on STEG unit costs, of electrifying the various households, agglomerations, and pumping and drilling sites. Based on this estimate, a table is prepared, showing the number of households that can be electrified at various cost levels and the estimated total costs of electrifying the number of households at each cost level. 4.24 This process permits STEG to provide the MDE with scenarios for electrification. Each scenario gives, for each Governorate, the number of beneficiaries, cost of projects, and rates of electrification. Once the rural development objectives of the Five-year Plan are fixed, these scenarios are used to establish project costs. For example, in the IXth Plan (1997-2001), the MDE fixed the ceiling at 2,200 TD (of which beneficiaries pay 200, STEG pays 200, and the State pays 1,800). Thus, all projects that cost less than this ceiling are selected for inclusion in the provisional Five-year Plan, based on grid extension; however, projects that cost more than 2,200 TD may be included in supplementary PP funding. 4.25 The regional Governorate, in collaboration with STEG's district office, adopts these projects and the funds the MDE allocates for rural electrification. The CNER then checks for inconsistencies between the adopted Govemorate projects and those in other programs (e.g., PDR, PDRI, Special Presidential Fund, and FSN). Finally-through meetings between the MDE, Govemorate, STEG, and ANER-the Govemorate program is confirmed at the national level. The Five-year Plan is thus the consolidation of the various regional plans. ANER Site-selection Process 4.26 Under the ANER program, the number of households that could benefit from PV systems is based on census data, as well as results of STEG inquiries and a 1995 renewable-energy study that concluded 70,000 households would not be served by the grid. Based on these findings, ANER planned to install 10,000 systems in the VlIIth and IXth Five-year Plans (7,700 have been installed to date). 4.27 ANER's site-selection process is determined largely by the advance of the grid- connected system. Historically, because of the time lag between ANER project definition and installation (as long as two or three years), PV projects were sometimes overtaken by arrival of the grid. In other cases, the grid arrived shortly after the PV systems had been installed, thereby duplicating efforts and wasting resources.6 4.28 Today, tighter coordination between ANER, STEG, and the Govemorates helps to avoid such duplication. ANER now asks each Governorate to provide a list of potential 6 In 20 percent of cases, the grid arrived within three months to a year after PV equipment had been installed. 22 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances beneficiaries of PV systems. The list is based on rural development needs, present and projected distance from the grid, and householder interest. Increasingly, efforts are made to ensure that projects are located well beyond anticipated grid extension. Thus, the list is reviewed by STEG before implementation. Achievements and Challenges 4.29 Rural electrification experience throughout the world suggests no single institutional structure or process for success. Regardless of the structure adopted, however, several characteristics are essential: clarity of purpose, well-defined roles for all agencies involved, and established procedures that ensure equitable agency coordination. As noted above, Tunisia scores well on all counts. 4.30 Nonetheless, Tunisia's rural electrification program has its shortcomings. Coordination has sometimes broken down-as the above example of duplicating PV systems and grid extension projects illustrates-resulting in wasted resources. Moreover, while the project-selection process (at least on paper) appears admirably clear and transparent, it may be criticized, in practice, for verging on the mechanical, especially in cases where local costs diverge from the national averages used to estimate total costs of rural electrification. Finally, although the selection process is initiated at the community level, in consultation with the local Oumda, this input is considered official rather than at the citizenry level, and could therefore be incomplete. 4.31 On balance, however, Tunisia's track record reflects its efficient, well-coordinated institutional processes, as well as its perceived fairness. These factors, in turn, have reinforced a national commitment to improving rural living conditions by making rural electrification an integral part of the country's broader rural development program. 5 Effective and Efficient Operations and Practices 5.1 The STEG's long record as an effective, efficient utility has earned it an international reputation as one of the best developing-country power utilities in the world (Hicks et al. 1993; ESMAP 1992a. Insulated from unwarranted political influences through its mandate, STEG has been a key partner in Tunisia's rural development. It is viewed as a model enterprise in the Tunisian govermment and economy,7 having attracted the best and brightest Tunisian engineers and economists to implement the nation's rural development mission during the 1970s. In hindsight, the high level of confidence vested in STEG's technical assessments played an important role in the successful adoption of cutting-edge technology. Operational Characteristics for Success 5.2 Three major operational factors contributed to STEG's success: * clear mandate and effective management structure, * early computerization and development of software applications adapted to the Tunisian system, and * transparent norms and guidelines. Mandate and Management Structure 5.3 STEG is a statutory Government corporation, of a commercial and industrial nature. Established by Decree Law No. 62-8 of April 3, 1962 under the Ministry of Industry's supervision, STEG is responsible for the generation, transmission, distribution, import, and export of electricity and natural gas. The utility's three departments and 15 directorates, which report to the chairman and managing director, are responsible for operating the electricity and gas systems and managing the utility (figure 5.1). 5.4 The Directorate for Electricity and Gas Distribution has primary responsibility for rural electrification, through its Department of Program and Budget, Logistical Directorate, five Regional Directorates, and 34 District branch offices. This Directorate is supported directly, however, by the General Management, which approves plans and budgets, and by central administrative STEG units, including the Directorate for Finance ' While a discussion of the reasons for STEG's development as a model enterprise is beyond the scope of this report, it should be noted that the strong leadership role of its founding chairman at critical junctures was a significant factor. 23 24 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances and Accounts, Directorate for Studies and Planning (which sets tariffs), and Directorate for Human Resources and Legal Affairs (which trains external contractors). Figure 5.1: STEG Organizational Chart THE BOAR GENEAL MANAGMENT PRESIDENT & GGENERAL MANAGER DEPUTY GERAL MANAGER Strategic,StudisGroup AUDrrING DIRECTORATE BIDS COMMISSION PERMANENT SECRETMIATE MANAGEMENT CONTROL DIRECTORATE CENRTRAL SERVICES DEPARTMENT TECHNOLOGY MANAGEMENT COMMUNICATION DIRECTORATE AND COOPERATION DEPARTMENT QUALITY MANAGEMENT PROJECT STUDIES AND PLANNING GAS PRODUCTION AND ELECTRICITY AND GAS ELECTRICITY PRODUCTION ORGANIZATION DIRECTORATE TRANSPORTATION DISTRIBUTION AND TRANSPORTATION AND INFORMATION SYSTEMS DIRECTORATE DIRECTORATE DIRECTORATE DIRECTORATE ELECTRICIrY EQUIPMENT HUMAN RESSOURCES DIRECTORATE ~~~~~~~~~~~~~~~~~~~~~~~~AND LEGAL] AFFAIR _ DIRECTORATE | | REGIONAL | REGIONAL || PROGRAM ||REGIONAL DIRECTORATE UN D IRECTORATES ANUIS (six) BUDGET GENERAL AFFAIRS DEPARTMENT FINANCE AND ACCOUNTING DIRECTORATE DIRECTORATE DIRECTORAEREGIONAL DATA PROCESSING DISTRICTS MARKETING DIRECTORATE DIRECTORATE (34) 5.5 STEG's 14-member Board of Directors includes a Chairman and Managing Director, Assistant Managing Director, nine members representing the State (including a representative of the Ministry of Environment), two members representing employers, and one financial controller. STEG also has a cooperative agreement with the Association of Consumer Protection to provide consumer input through regular meetings with STEG headquarters, as well as with field offices and the newly implemented call centers. 5.6 STEG's organizational structure reveals two key reasons for its success in rural electrification. First, the utility has enjoyed the backing of highly professional, experienced administrative units within a large corporation with well-established operating and customer-management procedures. Second, it has benefited from a highly decentralized implementation structure since 1977, when the decision was made to establish district offices in each Gouvemorate. Today, in fact, many Gouvemorates have more than one STEG district office, which facilitates coordination with rural development planning through the local selection of STEG projects in close cooperation with the regional administration. Effective and Efficient Operations and Practices 25 Early Computerization and Development of Software Applications 5.7 Another key to STEG's success has been the computerization of operations and development of software applications, which have been adapted to the utility's specific needs. STEG was the first major Tunisian corporation to computerize operations; this occurred in the early 1970s, the same time that the country's rural electrification drive was launched. By the late 1970s, nearly all departments had been computerized, which permitted a sophisticated level of data collection, analysis, and management that contributed greatly to STEG's ability to monitor and improve its performance in all areas, including rural electrification. 5.8 During the mid-1970s, various software applications fundamental to the day-to- day operations of STEG were designed and adopted. These included: * personnel and salary management (pay chain), * daily accounts, billing, and receivables of LV subscribers, known as BTJ (Basse Tension Journaliere), * billing of MV subscribers, * inventory management of network supplies, * integrated management system, and * integrated management of construction works. 5.9 During this initial period, STEG emphasized software development as an operational and business management tool. Engineers and software technicians were recruited to design and put in place these software applications. To strengthen data handling, a more powerful mainframe computer was purchased, and access terminals were installed in users' offices. Software applications were also developed to facilitate the design of rural electrification systems. These included the Tanouir software for sizing MV lines and the BTJ software for daily accounting records of LV customers (Appendix 1). Transparent Norms and Guidelines 5.10 STEG's operational norms and guidelines, updated regularly, are used by both STEG technicians and outside contractors to ensure a standardized approach and adherence to contracts. These guidelines include: * Section on Specific Administrative Clauses or CCAP (Cahier des Clauses Administratives Particulieres)-Covers all administrative details, including the costs that can be included in bids, those for which STEG is responsible, escalating factors for unit costs, terms of payment to contractors, general billing conditions, applicable taxes, penalties, insurance requirements, construction supervision, and project acceptance by STEG. * Section on Specif c Technical Clauses or CCTP (Cahier des Clauses Techniques Particuli&res)-Includes all general specifications for project construction, including tolerances when laying out lines, transport and handling procedures for various components, specifications for preparing concrete, appropriate 26 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances installation of line hardware and stringing of conductors, and preparation of grounds. * Technical Guide to STEG Electricity Distribuition (Guide Technique de la Distribution Electricite de la STEG-Includes all specifications for the design and construction of rural electrification projects and is supplemented by a series of documents detailing Tunisian standards. * Uniform Cost Evaluation Reference (Mercuriale, Etat Synthetique)-Prepared by STEG every 12-18 months based on its nationwide rural-electrification cost history, permits standardized cost evaluation by all units. Costs are prepared for each assembly that a rural electrification project uses; they include supply and storage fees, overhead, in-country transport from central storage to job site, and installation. The Mercuriale facilitates preparation of customer invoices for construction, equipment, and services rendered by STEG for its customers, as well as calculation of project costs, regardless of financing source. * Unit Cost Contract (Contrat-tariff)-Contains unit costs for each task undertaken during project construction as a basis for payment to small enterprises. This document is revised every three years for each zone on the basis of unit costs bid by the large enterprise that is the lowest bidder for large projects in that specific zone (minus the transport costs from central storage to the district, which is STEG's responsibility for small jobs). 5.11 Taken together, these guidelines have provided an implementation framework for rural electrification that has reduced costs and raised efficiency considerably through standardization. Successful Project Implementation and Construction 5.12 STEG's successful implementation and construction of rural electrification projects are based on four major factors: * encouragement of private-sector participation during the construction phase, * promotion of local industry to supply equipment and materials, * computerized inventory management system, and * rigorous commercial practices, including control of non-technical losses and effective billing and connection payment procedures. Private-sector Participation in Construction 5.13 Most rural electrification projects are constructed by outside contractors, not STEG. STEG's role more often involves project planning and design, contractor selection and training, procuring and managing grid supplies, development of detailed construction standards and guidelines, and monitoring and evaluation of completed projects. This approach has succeeded in maintaining low costs and ensuring quality construction, as well as supporting the development of local expertise and enterprises. 5.14 Both large national enterprises and small local firms participate in project construction. Projects whose labor costs exceed 30,000 TD are bid on. A verification committee, composed of independent evaluators, uses a technically and financially Effective and Efficient Operations and Practices 27 rigorous process through which to evaluate the bids. For projects whose labor costs are less than 30,000 TD, STEG's district office selects small local firms, based on their availability and technical capacity. In 1992, large enterprises handled 36 percent of construction, small firms were responsible for 56 percent, and STEG undertook the remaining 8 percent. 5.15 In the early 1 970s when the drive toward rural electrification first began, Tunisia's few local enterprises lacked the skills needed to construct medium-voltage/low- voltage (MV/LV) substations and lines. STEG encouraged these firms to increase their competence through training provided by the Sectoral Center for Professional Training (CSFP) (part of the Tunisian Agency for Professional Training). The CSFP training program helped to establish a qualified cadre of rural electrification contractors in all regions. In 1999-2000 for example, the CSFP trained 30 foremen and 63 linemen, who represented firms from throughout Tunisia. 5.16 As projects progress, STEG technicians regularly check their adherence to the utility's technical distribution guidelines. STEG prepares regular project status reports, which are submitted to the regional Gouvernorates, the MI, and financing organizations. 5.17 A STEG team inspects completed projects to ensure they conform to the terms of the contract and relevant construction norms. Since STEG assumes all financial responsibility for subsequent use of the system, the inspections are quite rigorous, and the contractor must remedy any inadequacies before payment is made. Participation of Local Supply Industry 5.18 Tunisia's rural electrification program has encouraged the development of national industries to supply its needs. In externally-funded projects, local and international suppliers compete directly, which has pushed local suppliers to improve their product quality and adjust prices to the international market. Initially, local suppliers enjoyed a 15-percent preference over the lowest international bid; this preference decreased by 5 percent per year until it was eliminated in 2004, at which time local suppliers were placed on the same footing as international ones.. Currently, the average share of Tunisian suppliers of grid materials is 64 percent (it varies between 40 and 100 percent, depending on the item supplied) (Appendix 2). 5.19 The bidding process for grid supplies is meticulous. Pre-defined rules are followed for deadlines, method of evaluating technical bids independent of price bids, and method of submitting bids for specialized commissions' approval. These rules guarantee maximum transparency and give suppliers the confidence to make their best offers. 5.20 Now that Tunisia's electrification market is nearly saturated, suppliers are turning toward export markets. According to the World Bank (2000a), export of electrical machinery is a booming industry, having grown from 1.2 percent in 1980 to 7.5 percent in 1997 and poised for continued grow. Thus, STEG's strategy of using local suppliers appears to have not only reduced its own costs, but to have also encouraged growth of a national export industry. 28 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Computerized Inventory Management System 5.21 STEG's sophisticated inventory management system has been a major factor in the utility's ability to cut costs. The supply system allows for disruptions, thereby avoiding storage costs. Through regional grouping, larger quantities can be ordered, thereby reducing supply costs. 5.22 The Logistics Department is responsible for determining global supply needs, launching calls for bids, and placing orders. This was the first STEG department to obtain the ISO-9002 quality certification, which assures suppliers and bidders that procedures follow international standards. 5.23 Inventory management occurs within an ongoing cycle of document circulation, data analysis, and database updates. Four key features of the cycle are: * Annual calls for bids and placing orders-Conducted according to a well- defined, independently reviewed process. * Monthly updating of current inventories (at both central and district-level warehouses)-Permits timely transfers between districts, thereby reducing the need for storage. This system has been computerized since the early 1970s, and each item has a code and STEG end price. * Monitoring supply consumption (using the same computer software)-Provides information on supply flows, inventory stocks and changes, and system performance (e.g., how close current inventories are to average monthly consumption and average monthly stocks). All supplies are divided into three classes: A, B, and C. Class A, which represents 80 percent of supplies by value, has an inventory of 4-to-6 months; Class B represents 15 percent, with a 12-to- 18 month inventory; and Class C, represents the remaining 5 percent, with a 12- to-24 month inventory. * Forecasting needed purchases-Made for the following year, based on the above data on current use and five-year averages, for each of the some 400 items in the inventory. Rigorous Commercial Practices Non-technical Losses 5.24 Tunisia's non-technical losses-the financial losses the utility incurs when the power it supplies is consumed but not paid for-are comparable to those of developed- country utilities. STEG's distribution system has minimized its non-technical losses largely as a result of a customer management improvement program introduced in the 1980s. For the entire distribution network, ESMAP (1992a) estimated non-technical losses at only 3.1 percent (technical losses, mainly in transformation, were estimated at 10.3 percent and total systemwide losses at 13.4 percent). 5.25 In rural areas, fraud and meter tampering are minimal. One major reason is that rural customers respect the electricity utility more than urban consumers do. Meters in rural areas, installed more recently than in urban areas, are damaged less often , and unrecorded losses caused by blocked or damaged meters are rare. Another deterrent is STEG's policy on illegal connections: it includes frequent monitoring and inspection Effective and Efficient Operations and Practices 29 campaigns, rotating meter readers among districts, printing meter cards for disconnected customers, and generating computerized lists of low-consumption users. Bonuses are given for identifying cases of fraud;strict legal action is taken in such cases. And hard-to- hook-up-to, insulated cables are used for networks and supply lines. Customer Billing 5.26 Customers are automatically billed from two computer centers: 1) Tunis and 2) Sfax. In the early 1970s, STEG set up an integrated billing software program, whose effectiveness has been proven through thorough testing. The first customer who requests a connection activates the system. Each customer file is followed closely through the cycle of connection, cash payment, hook-up, and finally metering and billing of consumption. This system allows for daily monitoring of consumption and regular monitoring of installed meters to avoid unaccounted for consumption. 5.27 The software used can monitor meter reading and signal any deviation in athe bi- monthly reading regarding a customer's historic consumption pattern. This allows the detection of index errors and signals any potential cases of fraud as soon as any unexplained changes in consumption levels occur. 5.28 Although LV customers are billed bi-monthly, meters in rural areas are read only once every six months (compared to once every four months in urban areas and every other month for Government offices and water pumping). Thus, between meter readings for rural customers, two bills are estimated based on the average bi-monthly consumption over the last three rolling years. When the meter is read, the actual consumption is calculated, and the amount paid in intermediate bills is deducted. 5.29 Large customers are metered and billed on a monthly basis. Billing is spread out over time in order to better divide the handling of customer files and cash flow during the month. Payment Collection 5.30 Although STEG agents deliver statements to customers' business addresses or residences within three-to-five days; however, this method is expensive. Postal service is also considered unreliable, expensive, and faces delivery problems similar to those of STEG. Both the postal service and STEG drops off the bills of more isolated rural customers at the local general store, which serves as an informal post office. This can result in payment delays and cutting off of service for rural customers. 5.31 Electronic pre-payment meters, whose cost is falling, are under consideration. This approach would allow customers to manage their own consumption and avoid being cut off. STEG would make eight fewer trips to the village per year, resulting in considerable cost savings, in addition to savings in managing billing and checking meters. It would also eliminate sources of customer conflict, such as errors in metering or cut-offs caused by payment delays. Other alternatives under consideration are using portable terminals for meter reading and immediate delivery of bills to customers for actual consumption; however, these alternatives remain expensive. 30 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Debt Recovery and Connection Payment Facilities 5.32 In most rural areas, customers give top priority to paying their electricity bills. Most unpaid bills originate in the public sector, but, as Table 5.1 shows, payment has improved in recent years. In 1997-98, unpaid bills for LV customers-both rural and urban-represented less than 5 percent of STEG's total unpaid bills. Table 5.1: Comparison of STEG's Unpaid Bills, 1990 and 1997-98 1990 1997 1998 1998 Unpaid Bills MTD % MTD MTD % Total public sector 21.3 81 60.9 48.1 79.6 Total private sector 5.0 19 17.3 12.3 20.4 LV customers (rural and urban) 3.2 12 9.6 2.9 4.8 Total 26.3 100 78.2 60.4 100 5.33 Payment facilities for connection costs are extremely generous, as STEG has learned from experience that rural households can maintain only low monthly payments. When the rural electrification program was first launched, customers had to pay their connection fees over a 10-month period. When even this payment arrangement proved unaffordable for many rural customers, the amount was progressively spread out over 40 months in 20 bi-monthly payments, and later extended to 72 months in 36 bi-monthly payments, where it remains today. This policy of spreading out payments has greatly reduced the monthly bills of connecting households; as a result, non-payment is rare. Analysis of Customer Service: Problems and Solutions 5.34 Historically, STEG has sought technical responses to customer-service problems (e.g., innovative billing practices and the MALT system), while monitoring of customer satisfaction with service quality has been largely ignored. It has been assumed that the economic cost of an undistributed kilowatt hour in a rural area-characterized by low electricity demand-is much less than one in an urban area, that daytime power outages often go unnoticed by customers, and hence that economic losses are insignificant. The informal field work conducted for this study identified several common problems reported by the consumers interviewed, described below. Power Outages and Lack of Communication 5.35 According to the informal field work conducted for this study, power outages, though infrequent, did occur in the villages studied. Some were programmed (as part of works in progress), while others were unanticipated (due to natural causes, such as violent weather). Lack of communication has exacerbated the problem. For example, health clinics complained of not having been informed of prolonged outages, and having to contend with spoiled refrigerated vaccines. To protect against such damages, some clinics have had to reduce vaccine inventories or maintain emergency coolers. In Effective and Efficient Operations and Practices 31 addition, rural customers experienced difficulty contacting STEG because of out-of-order or inaccessible telephone booths or because they believed the utility would be informed about their problem automatically. Voltage Fluctuations 5.36 Voltage fluctuations have damaged domestic appliances and television sets. Regional development authorities and agricultural and agro-processing customers interviewed for this study reported that voltage fluctuations had damaged electric motors used for water pumping.8 In the future, such fluctuations could increase as coverage is extended to houses located remotely from MT/LT substations. Lack of Access to Three-phase Power 5.37 Agro-processing customers in the areas studied expressed concern about lack of access to three-phase power (single-phase power prevails in rural areas). Private silos, usually located near grain fields, require three-phase power because they are fed by electrogenes groups. Refrigerated collection centers (financed by a Luxembourg project) require a power of 15-22 kW and three-phase power. Rural development authorities also mentioned projects that companies are prepared to invest in that are located in areas where water is available; however, power is limited to the single-phase grid (e.g., an ostrich-raising project in Sidi Bourouis, where electric heaters would be used). Billing Some farmers and water associations also complained about bi-monthly billing (they would prefer monthly bills), inconvenience of peak-load management periods, power-factor penalties, and taxes on electricity bills. Call for Monitoring 5.38 Today, STEG employs customer service representatives in its branch offices to handle customer billing problems and complaints. Moreover, pilot call centers have been set up in certain districts to handle customer inquiries. Even so, rural areas still lack sufficient monitoring of customer needs and service levels. Such monitoring could perhaps lead to educational campaigns for customers and alternative utility approaches. STEG's Customer-service Response 5.39 Over the past two years, STEG has launched a high-priority effort (ecoute client) to improve how customer problems are resolved. Customer service representatives are employed in branch offices to handle customer billing problems and complaints. Moreover, pilot call centers have been set up in certain districts to handle customer inquiries. Additional monitoring of customer needs and service levels is needed in rural areas, which perhaps could lead to educational campaigns for customers and to alternative approaches by the utility. 8 One disadvantage of electric water pumping for agricultural use is that it rapidly exhausts the water table. For this reason, it must be carefully monitored. The water authority sets maximum outputs, which farmers cannot vary according to their needs; therefore, a reservoir must be constructed. 6 Robust Financial Arrangements 6.1 Unlike many developing countries, Tunisia has implemented its rural electrification program without undue stress on Govermment or implementing-agency finances. Four major factors have contributed to this achievement. First, during much of the period of rapid rural electrification, Tunisia's economy grew briskly (4-5 percent), thereby generating adequate budgetary support. Second, declining investment in electricity generation during the 1980s released funds for rural electrification. Third, rural consumption represented only 4 percent of total consumption, which minimized the effects of subsidies on operating costs. Fourth, Tunisia had access to loans and grants from a wide range of international donors and agencies. 6.2 Rural electrification involves both capital costs and subsidies. Capital costs are needed for system expansion, as the grid is extended into new areas. Once in place, some type of subsidy is typically needed to offset the high costs of servicing remote communities. Financing Grid Expansion 6.3 STEG, rural electrification beneficiaries, and State resources were all mobilized effectively to achieve grid expansion. The State bore the largest share, either through domestic budgetary resources or borrowing from' various international organizations. Since 1977, the formula described below has been used to define the contributions of each funding source. STEG's Contribution 6.4 A cost ceiling per average connection has been established for STEG. This simple, workable formula sets a limit on STEG financial participation and provides incentives to undertake economically justified investments. From 1977 to 1986 (the Vth and VIth Five-year Plans) STEG contributed up to 100 TD per household connection and 250 TD for agricultural pumping, thereby providing an additional incentive for the more immediately economically productive activity. However, since 1989, STEG's participation in household connections increased to 200 TD, reflecting higher costs and a special national effort to improve the quality of rural life. Role of Beneficiaries 6.5 Beneficiaries' participation in connection costs is fixed at 200 TD. This amount is calculated so that electricity costs less than alternative energy sources (e.g., candles, 33 34 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances kerosene, or batteries). In certain regions, beneficiaries have agreed to contribute more than the required 200 TD to expedite household connection (e.g., Bizerte's level is 273 TD, Nabeul's is 400-600, and Sfax's is 400). State Participation 6.6 The State, through its various programs, assumes the balance of investment costs not covered by the STEG or beneficiaries. Over the past 25 years, the State's participation has risen from 400 TD per connection during the Vth Plan (1977-81) to 1,800 TD during the IXth Plan (1997-2001). The chief reasons for the 1,400 TD increase were inflation (the cost in real terms might have risen from 400 TD to about 1,500 TD) and the higher costs associated with connecting more dispersed, remote communities. Excluding contributions from the Special Presidential Fund and FSN for those projects that exceed the specified ceiling, the State's contribution now accounts for up to 85 percent of total connection charges (compared to 45 percent in the program's early years). 6.7 For each project, an average cost of electrification is calculated in terms of an upper and lower limit. The lower limit equals the maximum STEG connection contribution (200 TD) and the beneficiary's fixed contribution (200 TD). Thus, projects costing less than 400 TD are considered feasible, and are financed by STEG. 6.8 For projects costing more than 400 TD, a maximum or ceiling is defined every five years in the Economic and Social Development Plan. For the IXth Plan, this ceiling was set at 2,200 TD. Projects costing between the lower (400 TD) and upper (2,200 TD) limits are co-financed by the State under such programs as the PRD and PDRI. Projects costing more than 2,200 TD can draw on the PP funds or voluntary citizens' rural development fund. Sustainable Financial and Tariff Strategies 6.9 For long-term sustainability, any rural electrification program must establish a system of tariffs and charges that are self-financing and do not depend on increasingly larger subsidies from State revenues. In this respect, Tunisia's tariff policy has avoided many of the pitfalls encountered in other developing countries. STEG prices power close to its long-term marginal cost, and makes considerable efforts to keep rates in line with the cost of providing electricity. 6.10 The tariff structure, negotiated between STEG and the MI, reflects the differing costs in providing electricity supplies to broad customer groups (table 6.1). Thus, tariffs are lower for high-voltage (HV), industrial customers with high consumption levels and higher for LV customers, typically households with low consumption levels. Currently, tariffs do not reflect the locational cost differences in delivering energy; that is, nationwide tariffs are established without accounting for the considerable cost differences in supplying rural and urban households. In this regard, rural household tariffs benefit from a significant cross-subsidy since each new connection costs significantly more than the STEG bills. 6.11 According to a STEG-requested tariff study conducted in 1996, high- and medium-voltage tariffs, on average, reflect marginal costs of supply. However, LV Robust Financial Arrangements 35 tariffs were about 10 percent lower than their long-term marginal costs of supply, despite their being generally higher than high- and medium-voltage tariffs. Table 6.1: Average Electricity Price (Excluding Taxes) by Consumer Group, 1994-99 (millimes* per kWh) Year Voltage Group 1994 1995 1996 1997 1998 1999 High 42.3 43.9 43.4 43.7 44.0 44.2 Medium 56.7 58.5 58.7 58.7 58.5 58.6 Low 74.0 76.2 77.1 76.9 76.9 76.7 Average pnce 61.1 63.1 63.7 64.0 64.1 64.5 1,000 millimes = I TD. Source: STEG 6.12 A second characteristic of the tariff structure is the distinction between peak and off-peak usage in all electricity markets (high-, medium, and low-voltage levels) (table 6.2). In many cases, peak-hour tariffs are nearly twice as high as off-peak tariffs. 6.13 The low-voltage supply, of which rural users account for 1 1 percent, has various tariffs designed to promote social equity and rural development. For example, a low lifeline tariff applies to consumers who use less than 50 kWh per month. These consumers pay 63 millimes per kWh for the first tranche, which rises to 90 millimes per kWh for consumption of more than 50 kWh per month. The progressive nature of these tariffs encourages consumers to manage their consumption in order to reduce consumption in the next higher tranche. Public lighting, which ensures greater public security, benefits from a special tariff. 6.14 STEG tariffs are also designed to promote rural development, especially agriculture. Thus, irrigation benefits from the lowest tariffs (table 6.2). A low off-peak tariff (35 millimes per kWh compared to 45 millimes per kWh) encourages farmers to irrigate at night. Since the early days of rural electrification, tariff policies have particularly encouraged oil pressing and milling/grinding. Until 1978, each of these activities benefited from its own tariff, which was substantially lower than the average low-tension tariff. Between 1979 and 1993, the two tariffs were combined into one, which was still lower than the average. In 1994, however, in an effort to simplify, this tariff was aligned with the average low-tension tariff. These advantageous agricultural tariffs are part of a broader program to stimulate rural development, which also includes low-interest loans and subsidies to such projects as irrigation, storage centers for agricultural products, milk-collection centers, and rural industries (including repair shops, bakeries, hair salons, and weaving sheds). 6.15 Unlike many other developing countries, Tunisia increases its tariffs frequently in order to preserve the utility's financial balance. Since 1992, five increases have occurred (7 percent in 1992, 3 percent in 1993, 5.9 percent in 1994, 4.6 percent in 2000, and 2.4 percent in 2001), yielding an average annual increase of more than 2 percent. However, this percentage is less than half of the 4.6-percent cost-of-living increase and therefore 36 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances represents, in real terms, a decline in overall tariff level. Tariffs for domestic consumers, including rural consumers, have declined more sharply than the average (by about 16 percent over the past five years). From 1991 to 2001, the price of the lifeline segment (less than 50 kWh) rose only 6 millimes per kWh, while tariffs for consumption above 50 kWh rose 20 millimes per kWh (table 6.3). Table 6.2: Electricity Tariffs (Excluding Taxes), 2001 Fixed Charges' Energy Price (mill/kWh)'2 2 Subscription Power Voltage Level (mill/custom- (mill/kW/mo Tariff er/month) nth) Day Peak Evening Night 4 times a day - 2,500 42 82 63 29 High tension 3 times a day - 2,500 44 80 NA 30 Back-up - 1,000 53 95 68 31 Uniform 3003 65 Time of day - 3,000 50 94 Medium Water pumping - 3,000 51 93 tension Agricultural use - - 50 Out Pumping for irrigation - - 50 Out Back-up - 1,500 63 102 Economic tranche4 (I and 2 kVA) - 1003 63 Normal tranche (> 2 VA) - 1003 90 Public lighting - 2003 77 Low tension Water heating 400 - 66 Out 66 Heating and cooling 300 - 98 Irrigation Uniform 300 |1003 61 Time of day 700 - 45 Out NA 35 ' A value added tax is applied at the following rates: 18 percent on all fixed charges and the energy price (taxes excluded) for all uses except domestic and irrigation; 10 percent on the energy price (taxes excluded) for domestic and irrigation uses. 2 A municipal tax is applied at the rate of 3 millimes per kWh. 3millimes per kVA per month. 4 Below 50 kWh per month; above this, the normal tranche applies. NA = not applicable. Note: mill. = millimes Source: STEG Robust Financial Arrangements 37 Table 6.3: Trends in Low-voltage Household Tariff, 1991-2001 (millimes/kWh) Year Tariff Level 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Less than 50 kWh 57 59 59 61 61 61 61 61 61 62 63 More than 5OkWh 70 76 79 83 83 83 83 83 83 87 90 Source: STEG 6.16 Although STEG does not provide sectoral accounts, it is believed that, over the past decade, the gap between electricity-sector costs and prices has been modest. During the mid-1990s, the costs of supplying electricity may have been somewhat higher than revenues. Falling fuel prices in subsequent years probably brought STEG costs and sales revenue back into balance. 6.17 Overall, STEG's finances are healthy, with only moderate debt. However, in its accounts, STEG does not distinguish between net profitability of its electricity and gas activities. In the mid-1990s, it is probable that gas profits compensated for deficits in the overall electricity account. Although the electricity sector was in balance in the late- 1 990s, costs subsequently rose. The price of oil, which accounts for a substantial share of generation capacity, increased sharply, and the cost of connecting households remote from the grid continues to rise. At the same time, tariff increases have not kept pace with inflation. 6.18 Financing electricity deficits through surpluses in the gas account may be practicable for a limited period, particularly when gas prices are high. However, the process is vulnerable to changing conditions in the gas market, masking the true financial position of the electricity sector. This, in turn, distorts electricity-sector planning and adds to the political difficulty of raising tariffs. Economics and Financing of PV Systems 6.19 The primary rationale for PV-based rural electrification is to benefit households considered beyond the feasible extension of the grid. Other justifications for PV installation include fuelwood shortages and the increasing hydrocarbon deficit. 6.20 The cost of installing PV systems for rural households is estimated at about 1,900 TD. This amount is in line with STEG connection costs, currently estimated at 1,500- 2,200 TD and even reaching 2,500 TD for connection charges financed by supplementary PP programs. However, these PV cost estimates do not cover replacement and maintenance. While the PV module can last 20-30 years, the other component parts (which together account for one half of the installed system) must be replaced after 5-10 years. 6.21 Furthermore, the lower yield of PV systems means that kWh costs are in the range of 1-2 TD per kWh, more than 10 times the cost of grid-delivered electricity. Such high costs for low-income customers means that the State bears a major share of installation 38 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances costs. In the current ANER system, the beneficiary pays 100 TD, a token of the beneficiary's interest and capacity to accept maintenance costs or the costs of replacing used equipment. 6.22 The regional council of the Governorate contributes 200 TD, while the State, through the ANER budget, supplementary funds, and supplier credits, contributes the balance of about 1,600 TD. In most cases, the State, through its various programs, contributes more than 90 percent of system costs. Contrary to expectations, Beneficiaries do not accept responsibility for maintenance or replacement, and typically assume that the system belongs to the State, which they hold responsible for repairs. If ANER does not repair the PV systems, they remain broken. As a result, ANER has been obligated to establish a separate budget for maintenance. 6.23 Clearly, the PV program is expensive in terms of delivered energy. However, the relatively modest program size (only 7,700 families to date) means that total budget exposure is relatively small, and the high costs could be considered a necessary humanitarian and developmental contribution to improve the quality of rural life. 6.24 Even so, there is concern about rising costs and poor perfornance, especially as the PV program plays an increasingly greater role in electrifying Tunisia's remaining unelectrified households beyond the reach of the grid (expected to number in the tens of thousands). Reflecting this concern, various policy changes are being discussed. In the near future, these will center on increased beneficiary contributions. In the longer term, a completely new system could be envisaged in which the beneficiary would contact the PV equipment supplier directly to arrange for system installation. ANER's role would then be to provide subsidies, act as a national coordinator for PV systems, and provide technical assistance to regional authorities and beneficiaries. 7 Cost-cutting Technical Innovations 7.1 From the outset of rural electrification, STEG recognized that the program's ambitious goals could only be met by keeping investment costs at a minimum. Thus, early on, vigorous efforts were made to cut costs. In addition pursuing efficient operational and commercial practices, STEG's engineers have continuously developed and adapted technical innovations to Tunisian conditions, thereby reducing the costs of both implementation and maintenance. 7.2 While it is not possible to determine what proportion of Tunisia's rural electrification program has resulted from these cost-cutting innovations, the repeated overshooting of ADB loan targets from 1979 to 1989 suggests their remarkable effect (table 7.1). In all four ADB loans over this decade, the length of 30-kV and LV lines, number of substations, and, most importantly, number of new connections far exceeded specified targets. In 1979, devaluation of the TD accounted for a portion of the 72 percent more connections; however, the 78 and 52 percent overshooting of 1982 and 1989 targets, respectively, resulted from ongoing, successful cost reductions. Table 7.1: ADB Tunisian Loan Targets and Achievements, 1979-89 30-kV Lines Sub- LV Lines New Connections Major ADB Loans (km) stations (krn) 1979 Target 500 175 280 17,400 Achievement 910 574 1,375 29,900 Percent difference 54 330 391 72 1982 Target 860 616 605 16,110 Achievement 1,293 1,114 1.531 28,640 Percent difference 50 81 150 78 1984* Target 250 400 1,600 200,000 Achievement 332 460 2,269 214,767 Percent difference 33 15 42 7 1989 39 40 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Target 2,810 2,800 3,900 61,000 Achievement 3,715 3.976 6,590 92,557 Percent difference 32 42 69 52 * Urban electrification only. Commitment to Customized Solutions 7.3 One key reason for these cost reductions was Tunisia's early adoption, in the mid- 1970s, of a low-cost, three-phase/single-phase distribution system, known as MALT. Unlike most African countries and many other developing countries, Tunisia chose not to adopt the technical standards it had inherited from Europe, which included a three-phase, LV distribution system, suited to densely populated areas and heavy loads. Many developing countries that adopted this system, following the advice of European utilities, ended up with a high-cost-per-km distribution infrastructure that was poorly suited to their scattered settlements and low demand levels. 7.4 Tunisia's decision to adapt the lower-cost, three-phase/single-phase distribution technology used in North America and Australia to its unique environment is arguably the single most important reason for the country's later success in rural electrification (box 7.1). Wider use of single-phase distribution not only reduced costs dramatically, enabling electrification of far more households within the same budget. It also fostered in STEG a unique esprit de corps that grew out of this courageous technical decision. Though much criticized at the outset, the utility's decision was later proven correct and supported by the political establishment. Moreover, STEG gained confidence through solving numerous technical and related problems involved in setting up the new system. As a result, it was motivated to continuously develop and implement vigorous cost- cutting efforts and innovative technical approaches over the following decades. Box 7.1: Adopting the MALT System: Key Technical Decisions The three-phase/one-phase MALT distribution system adopted in Tunisia consists of major arteries of overhead lines in three-phase, 30-kV, line-to-line voltage, with four conductors (three phases and one neutral wire) and secondary, single-phase, 17.32-kV, line-to-neutral voltage rural distribution overhead lines (two wires: one phase and one neutral). If heavy loads are to be fed, then three-phase lines with four conductors are used. Fuse cutouts protect MV lines. Single-phase transformers give a secondary, phase-to-neutral voltage of 230 V (single-phase, LV lines), which is used by most rural customers. The distribution system is composed of robust materials and equipment that are easy to use and maintain. When Tunisia adopted the MALT system, it made a second key technical decision: opting for a relatively high, single-phase 17.32-kV voltage, rather than the weak 3 or 5 kV of the North American model. The higher voltage was selected for the single-phase rural electrification overhead lines because of the long distances between villages and the nearest three-phase artery and to provide for future demand growth over the 30-year lifetime of the lines. Steps Toward MALT: Technical and Economic Decision-making 7.5 When Tunisia's need to accelerate rural electrification became evident in the early 1970s, STEG undertook a technical audit of distribution to assess existing distribution Cost-cutting Technical Innovations 41 methods, of which there were only two: 1) North American approach (characterized by widespread use of lines, combined with a three-phase backbone) and 2) European approach (with extended three-phase lines throughout the service zone). This audit concluded that the predominant European three-phase system was not well adapted to Tunisia's ambitious program of low-cost rural electrification. Given the features of Tunisia's targeted population-low rural incomes, dispersed households, and consumption limited to lighting and basic appliances (mainly refrigerators and television sets)-it was clear that the cost of rural electrification could not be financed solely through tariffs and that limited resources should be invested wisely. This led the technical audit to recommend considering a new means of distribution, using single- phase lines. 7.6 According to one Tunisian engineer who participated in the program, "Never had a technical recommendation raised as many debates and exchanges of points of view in STEG" (Essebaa 1994). The environment at that time was hostile to the changeover (ADB 1995a) with opposition from both system operators and European partners. . However, a technical study for the Master Plan for Distribution confirmed the audit's recommendations. To avoid pitting the European and North American systems against each other, the Tunisians called the new three-phase/single-phase distribution system Mise A La Terre, referring to MALT's grounding of the fourth neutral wire. 7.7 After several more studies that confirmed the audit's recommendations, and despite voices of opposition, STEG engineers were confident of the technical feasibility of the changeover and also of the MALT system's superior level of service quality, given that it allowed automatic isolation of lines that fault from the rest of grid. Having established technical confidence, the decision to change over became an economic question. Thus, during 1974-75, economic studies were carried out in several stages. First, a comparative study of distribution systems was carried out in seven typical villages, with positive results for the MALT system, which resulted in 30-percent savings. 7.8 To extend these comparisons to more villages, STEG developed a computerized model-an innovation at that time-capable of comparing system costs in 300 projects randomly chosen from those selected for the Vth Five-year Plan (1977-8 1). STEG staff gathered basic field data on electricity consumption, length of needed medium- and LV lines, and estimated future number of customers (five years after electrification) for specific end-uses (e.g., lighting and pumping). Technical assumptions were made about installed power and voltage drops. After gathering the most realistic prices of electrical equipment, these assumptions were used to design and cost various scenarios to provide a range of results for both distribution systems. 7.9 Results of the model, using data from the 300 randomly selected villages, highly favored the MALT system, which projected overall savings of 18-24 percent. As table 7.2 shows, the largest savings was at the MV network level. Soon after these results were made known, in January 1976, the decision was made to switch to the MALT system. 42 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Table 7.2: Estimated Savings of MALT System, Compared to Three-phase Distribution System, 1975 Network Level Cost Reduction (%) MV network 30-40 MV/LV substations 15-20 LV network 5-10 Overall 18-24 Source: Essebaa, 1994. Rapid System Conversion 7.10 Once this decision was made, the changeover to the MALT system occurred rapidly, testifying to STEG's analytical, planning, and logistical abilities. To the extent possible, existing equipment and materials (circuit breakers, spark gaps, three-phase underground cables, auxiliary relays of protection, 30-kV three-phase transformers, and switching devices) were kept and integrated into the new system to save costs. 7.11 System conversion consisted of two major steps: * Changeover from the existing 4,000 km of 30-kV grid, consisting of * - Installing neutral point coils in HV/3OkV substations, * - Laying the fourth neutral wire on the main 30-kV feeder lines, and * - Replacing the constant time protections (relays and current transformers) with reciprocal time protections in HV/MV and ring main unit (RMU) substations. * Planning, designing, and monitoring installation of new construction (lines and single- and three-phase substations) in the MALT system. Resolution of Technical Problems 7.12 Both steps posed important questions of technical adaptation, organization, implementation capacity, and customer relations, given the repeated interruptions in supply, which inevitably occurred during the changeover. Table 7.3 gives examples of the types of obstacles that STEG encountered during the conversion and how it overcame them. Table 7.3: STEG's Switch to the MALT System: Typical Obstacles and Solutions Changeover from the 30-kV network Obstacle Solution Laying a neutral, fourth wire had not been foreseen For each type of crossing, considerable imagination and during construction of the European three-phase numerous trials and attempts were required to place the network; thus, difficulties were encountered in fourth wire accurately. installing the neutral wire on existing poles while maintaining the required height above ground. Cost-cutting Technical Innovations 43 The neutral wire was attached to the LV spool The LV spool insulator was later replaced by a suspension insulator, which was later judged inadequate, insulator. especially where excessively long spans between poles caused the wires to break. Wires snapped in some spans where the neutral wire These anomalies were quickly corrected without had been incorrectly placed, with flashovers significant damages. occurring between the neutral and one of the three live wires. Changing the protections in HV/MV and switching substations Obstacle Solution The existing, fully saturated current transformers These were replaced with higher performance current were not well adapted to MALT. transformers. Difficulties were encountered that were linked to The tripping-reclosing cycles and the automates necessary power cuts in order to replace and adjust associated with the new protections were studied, protections. identified, wired, and tested in the laboratory prior to installation. Field interventions were reduced to installation and connection of a fully equipped panel, wired and tested in the laboratory. Taking the resistant earth protection out of service With more experience, it was demonstrated that the created much apprehension. resistant earth protection was not indispensable. Specifications of equipment and installations for the new system Obstacle Solution The new three-phase (Ynyn) transformers created These were replaced by four-column, magnetic problems of tank overheating in cases of outages in transformers. one live wire. The first fuse cutouts and the cabin substation Technical specifications were modified to reinforce crossing insulators were not suited to the humid insulation of equipment installed in these geographic climate of the coastal zones or the salinity of Chott El areas. Jerid. Disturbances were encountered in local telephone Capacity disturbances were resolved by using filters on lines running along long-distance electric lines. the telephone lines; inductive disturbances were eliminated by improving line groundings. 7.13 ydro-Quebec engineers provided technical advice on the three-phase/single-phase system. Beginning in 1976, short-term technical visits to Canada were organized for district chiefs and system operators and engineers. However, STEG staff had sole responsibility for system planning of the new system and resolution of the problems encountered throughout the course of switching to the new system were entirely the work of STEG staff. The changeover, which was completed in 1980, laid the foundation for launching a vast program of rural electrification in single-phase overhead branch lines. 7.14 Length of single-phase lines rose from 0 km in 1976 to nearly 19,000 km in 2000 (table 7.4). As the Five-year Plans were implemented, the number of kilometers of single-phase lines increased more rapidly than the number of kilometers of three-phase 44 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances lines, and the single-phase investment grew increasingly dominant. Today, single-phase lines account for 51 percent of the total network, compared to only 16 percent in 1981. Table 7.4: Length of Three-phase and Single-phase MV Overhead Lines, by Planning Period Three-phase Lines Single-phase Lines Five-year Plannning % Single-phase of Period km Growth (%) km Growth(%) Total 1977-81 9,488 7.1 1,830 16.3 16.2 1982-86 12,312 5.3 3,318 12.6 21.0 1987-91 13,412 1.7 7,008 16.1 34.3 1992-96 15,551 3.0 13,920 14.7 47.2 1997-2001 17,538 3.1 18,563 7.5 51.4 Note: All figures were recorded at the end of the respective Five-year Planning Periods. 7.15 Similarly, the number of single-phase substations rose from 0 in 1976 to more than 22,000 in 2000. Today, single-phase substations dedicated to rural electrification now account for 70 percent of all STEG substations. The MALT Advantage 7.16 As it has evolved, the MALT system has proven its reliability and safety. Its two major advantages are: * its reduced cost permits service to be provided to more households for a given investment and * improved quality of service, resulting from its ability to isolate a damaged area automatically. 7.17 The originally estimated cost savings of 18-24 percent was later surpassed by gains calculated at 34-40 percent, which is consistent with recent comparisons of the three-phase/single-phase system with the conventional, three-phase configuration (figure 7.1). Cost-cutting Technical Innovations 45 Figure 7.1: Total Line Cost (Materials and Labor) and Cost Savings for Three- phase and Single-phase Configuration in Various Countries $25,000 37%O El Three-phase $20,000 l _ 69t -$15000 - North Affuican 28% , | ~~~~~conFigtgatial 48% _ 6 O, ELrapean_ 1 E cofigiation o 47%/ 37%o > $10,000 - 26% 33% 3356/ Co~~~~~~~~~~~~~~3/ o 54% $5,000 $0 Source: ) NRC0nentoa, 1999.) 0 0) L)O C co 0~~~~~~~~~~~0 - 7.18 For this study, STEG calculated cost reduction on a typical 1 .44-km long rural electrification line in 54.6 rnm Almelec, using its in-house, Tanouir software design of MV lines (Appendix 3). This resulted in a cost estimate of US$6,665 per kn, a 37- percent reduction. The principal savings were in poles and line accessories, with a negligible cost increase for grounding. That this change was made early in the development of the Tunisian grid meant that its associated costs did not weigh too heavily on profitability, and the resulting high returns have been a significant factor in the country'cs high rate of rural electrification. 7.19 The MALT system improves service quality by automatically isolating a damaged area. The branch line affected by the failure is isolated by a fuse placed at the head of each branch line so that the other feeder lines and the principal artery continue to function normally. As a result, fewer rural customers are affected, failures are more quickly identified, and repairs are made more promptly and at lower cost. Solutions for Large-motor Productive Uses 7.20 As the MALT system has advanced and proven its reliability and safety, criticism has diminished, but challenges are still raised. For example, while single-phase lines 46 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances present no difficulties for use of household appliances (e.g., refrigerators or color televisions) or small motors (e.g., electric pumps or manual tools), adaptations and conversions must be made to serve large-motor (above 7.5 horsepower [hp]), agro- industrial, and deep-borehole irrigation loads. This limitation creates a potential problem for larger-scale industrial development in more remote areas, where rural customers must bear the additional costs. 7.21 Most industrial development occurs in industrial zones and incorporated villages, which are supplied with three-phase, 30-kV lines. Outside these areas, conversion from single-phase to three-phase lines can be made later, if justified by the load. However, in practice, this has seldom happened in Tunisia. 7.22 Technical solutions-widely marketed and practiced in North America-consist of special, more expensive motors, which, for 100-hp loads, can cost an additional US$2,000-15,000. Experts at the United States Agency for International Development (USAID) have pointed out that these costs are minor compared to the cost of installing three-phase lines; they have recommended even wider use of single-phase lines, even in areas with high loads from agro-industry and pumping (Hicks 1993). In Tunisia, however, early experience with single-phase, 7.5-hp electric pumps was unsatisfactory, which created suspicion among consumers that single-phase lines were somehow inferior. 7.23 STEG has offered several solutions for rural customers who own large motors: * For motors with 7.5-15 hp, a parallel assembly of two 7.5-hp motors can be constructed at twice the price of a single motor; * For motors above 7.5 hp, a locally made, static converter can be used at a cost of between 3,500 TD (corresponding to a 25-kVA converter) and 6,500 TD (corresponding to a 50-kVA converter); this will depend on the motor horsepower, voltage input, and whether a three-phase auto-transformer 230/400 is needed; * A single-phase line can be converted into a three-phase line, at a cost of 12,400 TD per km. 7.24 For smaller motors, installing a static converter is cheaper than converting even one-half of a kilometer of single-phase line into a three-phase line, especially if only one motor is involved. Still, these solutions are not widely practiced. In all cases, however, the customer must bear the extra costs. 7.25 It is difficult to determine to what extent unavailability of three-phase power lines has prevented establishment of productive, large-motor uses in Tunisia's more remote rural areas. Today, prosperous retirees often return to their rural homes to establish economic activities. Two such examples were encountered in this study's informal rural appraisal: a vineyard and winery under construction had only single-phase connections and would incur considerable costs to purchase motors for both large-scale irrigation and pressing; and a proposed ostrich-raising project would require numerous electric heaters. Cost-cutting Technical Innovations 47 Continuing Tradition of Cost- reducing Technical Innovation 7.26 Successful adoption of the MALT system fostered STEG's aggressive approach to cost-cutting, technical innovations. Throughout the 1980s and 1990s, technical and economic studies and pilot projects were undertaken to further reduce distribution-system costs, which resulted in a number of changes and cost savings. The examples given below are prioritized roughly according to their cost-savings importance: * Aluminum alloy wiring. In 1991, an aluminum alloy (ASTER) replaced copper wiring for constructing MV lines after a study showed that international copper prices were continuing to rise and that the estimated annual savings of using ASTER was 500,000 TD. * Pin insulators. In the 1990s, pin insulators replaced suspension chains on MV lines. In the new design, the conductor is held higher on the pole so that shorter supports can be used to achieve the same ground clearance. The resulting cost savings were significant. For example, the district of Kasserine achieved 20 percent savings for single- and three-phase lines. * Round-iron poles. Round-iron poles, which are cheaper, lighter and sturdier, have gradually replaced more expensive prestressed armored concrete (PAC) poles. The range of PAC poles has been reduced to three classes of 9-m poles (9/150, 9/300, and 9/600), while 18 class and length combinations of round-iron poles are in stock (8/150, 8/500, 9/180, 9/500, 10/180, 10/500, 10/1,000, 12/300, 12/500, 12/925, 13/450, 143/900, 13/1,700, 13/3,400, 15/450, 15/800, 15/1,600, and 15/3,200). * Cheaper protections. Expensive, LV circuit breakers at MV/LV substations have been replaced by much cheaper, yet adequate, fuses. * Cheaper meters. Three-phase meters have been limited to large consumers, while the power range of less expensive, single-phase meters has been increased. * Pole fastenings. To secure weak poles, cement foundations (8/150, 9/150, and 9/180 m/daN) have been replaced by backfilling around poles with stone to reduce line-construction costs. * Mixed MA and LV network. MV network poles have been used, where possible, to carry part of the LV network as underbuilt lines were constructed so that fewer LV poles would be needed. 7.27 Although the cost advantage of any single innovation may be relatively modest, the cumulative savings is considerable, testifying to the importance of STEG's culture of continuous improvement. Variations on the MALT System 7.28 STEG has continued its ongoing commitment to reducing distribution-system costs through technical innovation. In 1990, for example, it introduced the Single-Wire Earth-Retum (SWER), a variation on the MALT system. SWER has only one live wire and no neutral wire. The return current passes through at a grounding point at the end of the line (MV/LV 48 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances substations). This technique allows for an additional savings of 26-30 percent, compared to single-phase MALT.9 SWER was introduced with a number of precautions, however, because of the returning current's potential risk to humans and animals if lines are not carefully installed and monitored.10 By late 1996, the feeder lines implemented using SWER as pilot projects supplied 425 villages through 1,148 MV/LV substations. District chiefs have the freedom to decide whether to use SWER in specific rural electrification projects. 7.29 Another STEG innovation is the MALT 4.16-kV, single-phase line, which can reduce the cost of electrifying rural villages where houses are widely dispersed. As the rate of rural electrification increases, the number of locations with clusters of houses decreases; the remaining unelectrified households are more scattered, and the average cost per customer increases. This situation requires an increasingly long, LV network. In 1996, pilot projects illustrated that a cost reduction of 7-14 percent can be obtained for houses with an average dispersal, and an even greater reduction (31-33 percent) can be achieved for extremely dispersed houses. This technique, however, is suitable only for the relatively few projects at the end of the network, where no further extensions will occur. Hence, the gains are relatively small and usually unjustified by the increased management needs of introducing another level of voltage and range of network materials. Nonetheless, district chiefs can opt to use the 4.16-kv, single-phase line for projects with widely scattered households at the end of the grid. Standardized Equipment and Procedures 7.30 STEG makes efforts to reduce stock inventory by standardizing components where possible. For many years, an internal standardization commission worked on an ongoing, part-time basis to improve service quality, reduce network losses, and research technical specifications for network materials better adapted to Tunisia's climate. While the main emphasis was on improving service quality and inventory management, many of the changes adopted contributed to reductions in maintenance and management costs. In terms of cost savings, key changes were: * Replacement of spark gap by lightning arresters to better protect pole-mounted MV/LV substation transformers and decrease the frequency of transformers breaking down. * Introduction of three-phase transformers (Ynyn with four magnetic columns), where the fourth column absorbs imbalances in the two other phases caused by overheating of the transformer tank in the original three-column, star- connection transformers. 9 According to a 1996 study on STEG pricing, involving electrification of some five rural villages using MV lines of 2.7-10.6 km length. 10 SWER's disadvantage is that a more extensive and costly grounding network is necessary at every point where the line is grounded since the voltage drop at the grounding points could be sufficiently high to shock humans or livestock. In Tunisia, SWER is used in more remote areas, where loads are usually low; hence, the voltage is low and less dangerous. Nonetheless, given that loads are increasing in remote areas, grounding must be carefully monitored. Cost-cutting Technical Innovations 49 • Development of a distribution-system construction guide (with state-of-the-art technical rules and guidelines) for use by the utility's planning office and work and maintenance units. 7.31 Other standardization efforts to reduce costs included: * Hot galvanization, a small-cost way to avoid corrosion that prolongs the life of metal constituents of the grid. * Installation of capacitor banks on MV branch lines and in large consumer substations to increase the power factor, reducing both voltage drops and level of losses in the MV and LV network, without having to reinforce the grid. This was accomplished through an educational campaign that informed large consumers of the cost-effectiveness of purchasing the capacity banks, rather than paying the penalties caused by their power factors falling below 0.8. * Development of in-house (Tanouir) software adapted to the Tunisian MV network for sizing MV lines. This software has considerably reduced the length of studies and has permitted studying design variations for a specific agglomeration and choosing the lowest-cost solution. * Standardization of both pole-mounted and cabin MV/LV substations (structure, protection, and grounding). * Coordination of protections (circuit breakers, reclosers, and fuses) in a selectivity cascade, permitting the automatic isolation of the affected line from the grid and considerably reducing the undistributed energy. With each grid extension or major modification in the operating diagram, coordination of protections must be re-studied to guarantee effectiveness of the selectivity cascade. 8 Photovoltaics: Complementary Strategy for Isolated Users 8.1 Tunisia's national PV program underscores the country's commitment to provide at least a minimal level of electrification service to even its most remote rural households, which otherwise would remain unconnected. Currently, 7,750 households (about 1 percent of total electrified rural households), 200 schools, and a few clinics and forest/border posts have PV installations. 8.2 The grid and PV programs are complementary, and, in some cases, PV has become an interesting alternative to the grid. At a connection cost of 1,900 TD per household, PV compares favorably with grid-connection ceiling costs of 1,500-2,200 TD, or even 2,500 TD for FSN projects. 8.3 Tunisia's PV program aims to contribute to the national goal of 100 percent electrification by 2010, by which time 97 percent of households are expected to have grid electrification and 3 percent PV systems. Nonetheless, only 71,500 rural households remain unelectrified. During the last Five-year Plan alone, 200,000 households were connected to the grid. 8.4 To date, factors contributing to the success of the national PV program include: * coordination with grid systems and institutions, * demonstration and pilot dissemination projects to test feasibility and adapt components, * financing through State and international subsidies as a minimum public service, * focus on user needs and training, and * emphasis on maintenance and after-sales support. Coordination with Grid Systems and Institutions 8.5 Since 1985, ANER has implemented the PV program, while the STEG has implemented the grid extension program. Although ANER has principal responsibility for Tunisia's renewable energy policy and promotion, the Ministry of Economy, in 1993, designated ANER to play the lead role in PV rural electrification (particularly in executing pilot dissemination projects, such as a project funded by the Gerrnan Agency 51 52 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances for Technical Cooperation [GTZ] to electrify 1,000 households in Kef). Since then, ANER's implementation role has continued. Though the roles of STEG and ANER differ, their work is closely coordinated by CNER, under the aegis of the General Directorate of Energy, which includes representatives of the Ministries of the Interior, Economic Development, and Environment; FSN; as well as STEG and ANER. 8.6 Headquartered in Tunis, ANER has four rural electrification directorates and regional representatives in the three regions (excluding Tunis, ANER headquaters) where most PV systems have been installed (figure 8.1). Figure 8.1: ANER Organization Chart ANER ORGANISATION DIRECTOR GENERAL RENEWABLE ENERGY PROGRAM, FOLLOW UP REGULATIONS ADMINISTRATION DIRECTORATE AND DEVELOPMENT DIRECTORATE AND FINANCE RE Budget elaboration DIRECTORATE Contracts and DIRECTORATE implementation and follow up Conventions Logistics Tunis Regional El Kef Regional Agency _ Agency RE Implenmentation RE Implementation Sidi Bouzid Gabes Region Regional Agency __RE implementation RE Implementation 8.7 PV electrification emphasizes: * Pre-electrification of isolated and dispersed households and public services; a limited supply (50-100 W) is offered to those who must wait at least five years for the grid and * Electrification of households and public services unlikely to ever receive grid connection. 8.8 At the regional level, the process of household selection aims to avoid overlap between PV electrification and grid extension areas. The regional council prepares lists of potential beneficiaries based on their distance from LV and MV lines and the cost of connecting to the national grid. Next, ANER verifies these door-to-door, in close collaboration with regional and local authorities. Finally, the regional council collects household contributions and transfers them to ANER, which can then begin work. 8.9 In practice, however, there is often a long delay (largely caused by the time needed to seek PV systems financing) between the date of defining PV zones and actual installation. Meanwhile, the grid advances without attempting to avoid PV areas. Despite improvements in the selection process, in about 20 percent of cases, the grid still arrives three months to one year after PV installation. To avoid such duplication of State investment, as well as user disillusionment, priority is now being given to households that Photovoltaics: Complementary Strategy for Isolated Users 53 do not expect to be connected to the grid. It has also been proposed (based on Quebec's experience) that a rural electrification agency be established-to include representatives of STEG, ANER, and the regional government-to closely coordinate around the country's mission of total rural electrification. Well-tested Technical and Social Feasibility 8.10 Interest in PV developed during the early 1980s, based on environmental and social grounds. Several demonstration projects were followed by pilot dissemination projects, which showed that the technology could contribute to meeting the basic electricity needs of isolated rural households and that individual PV systems were better adapted to isolated households than centralized systems, biogas, or grid extension." 8.11 A key facet of the pilot projects was to evaluate the technical performance of PV systems. Field experience revealed: * Need for adopting 1 00-W systems since outages have frequently been experienced during winter months using 50-W systems. * Confirmation of the sound performance of silicium monocrystalline and polycrystalline modules; systems that had manufacturing defects were returned under the 10+ years guarantee. * Extension of storage battery life through studies and trials conducted in cooperation with local manufacturers and the Mechanical and Electrical Industry Technical Center (CETIME); the outcome was a decision to use more expensive, tubular-plate batteries that better tolerate the charge/discharge cycle. * Technical-performance testing of various brands of other components, whose manufacturing quality and international standards have improved over the years; components include regulators; bulbs; and voltage adaptors for radios, cables and installation accessories. * Continued need for improvement in installation quality of connections, equipment placement, and wiring. 8.12 The national rural electrification program has implemented these recommendations. The installed systems used have the following minimum specifications: * crystalline PV panels, with a minimum power of 100 Watt peak (Wp); * tubular-plate batteries, with a minimum capacity of 200 Ampere hour (Ah); * 12V/I 5A charge/discharge regulator; * three lighting fluorescent bulbs (12/18 W); * radio voltage transformer (12 V/9, 7.5 and 6 V); and * 12-V electrical outlet for television set. l' Major projects included the GTZ-funded project in Kef and a State-financed rural schools program. 54 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances National and International Financing 8.13 In Tunisia, electricity is viewed as a minimum public service to which every household has a social right. More than 90 percent of the country's PV rural electrification program is subsidized. The largest funding sources are PV-module exporting countries, which have provided supplier credits for some 50 percent of the PV systems installed to date. The World Bank has provided loan credits for another 25 percent of installed systems; while national development funds, NGOs, and beneficiaries have contributed the remainder (table 8.1). Table 8.1: Financing Tunisia's PV Rural Electrification Program Funding Source No. of Households Electrified FSN)1 950 pRD2 330 PDRI 20 World Bank 2,250 Supplier Credits2 5,000 NGOs 350 Total 8,900 FSN has also financed some 1,000 households that are co-financed by other donors included in this table. 2 Low-interest and commercial supplier credits supplemented PRD (200 TD/system) and beneficiary (100 TD/system) contributions to finance a total of 5,000 households. 8.14 Beneficiaries are required to pay 100 TD per system, with 200 TD financed by the regional government, and the remaining 1,600 TD financed by State sources. Currently, consideration is being given to increasing the amount beneficiaries pay since 20 percent of system costs today would equal 500 TD.'2 8.15 Spread over the 20-30 year lifetime of system modules, and including replacement costs of other components, a financial cost of 1-2 TD per kWh can be calculated, compared with the national electricity price of 0.100 TD per kWh (table 8.2). Clearly, the success of national PV rural electrification depends heavily on the availability of credits and subsidies. Table 8.2: Cost And Lifetime of PV System Components, 2000 Componerit Cost (TD/Unit) Lifetime (Years) PV panels, 100 \Wp 800-900 20-30 Charge/discharge regulator 100-200 5-10 Tubular battery, 200 Ah 300-350 5-7 Fluorescent bulbs (3) 120-200 5-10 12 In 1990, 20 percent equaled 100 TD. Photovoltaics: Complementary Strategy for Isolated Users 55 Accessories 100-150 installation and quality control 150-250 Maintenance visits (2) 40-80 Total cost 1,610-2,130 User Needs and Training 8.16 Tunisia's PV rural electrification program has sought to meet user needs in several ways. First, system sizes have been increased, initially from 50 W to 70 W, with the present standard now at 100 W, in recognition of greater power needs and less insolation during winter. This equipment feeds a continuous 12-volt current: three light bulbs, one black-and-white television, and one radio-cassette player. Still, surveys have shown that the daily consumption level-up to six hours per day for lighting and television viewing, and three hours for radio-cassette player use-is 300 Wh. Households regularly overload their systems, sometimes leading to regulator-induced outages to protect the accumulator battery. To avoid such outages, users connect their televisions directly to the battery, resulting in further damage. 8.17 Second, because of lack of familiarity with PV systems, ANER organizes training workshops for regional administrators and beneficiaries to explain how the systems work. Even so, many households lack complete understanding of their systems' limitations, as illustrated above. 8.18 Third, ANER has striven to meet an increasing demand for refrigeration, which present PV systems cannot accommodate without costly supplementary equipment. However, users have been reluctant to contribute, even partially, to cover these costs. For example, ANER launched a program to disseminate 40 refrigerators (100 W, 100 liters) to households that already had PV systems, at a cost of 2,500 TD to ANER and 500 TD to users; no interested users were found for three years, even though the refrigerator alone costs 900 TD. Maintenance and After-sales Service 8.19 ANER has had an ongoing emphasis on maintenance and after-sales service. Originally, it was hoped that the beneficiary contribution would serve as both evidence of and motivation for financial interest in continued maintenance; however, two problems have emerged. Users have believed that responsibility for maintenance lies with the State. Moreover, Tunisia's few suppliers (only 2-5) are unable to offer a national maintenance network profitably because of the small number of dispersed installations; thus, spare parts are not easily available, despite a two-year guarantee. 8.20 ANER has variously handled this problem through: * rehabilitation of systems that deteriorated for lack of replacement parts; * subsidy (up to 65 percent) of spare parts, beyond the guarantee; and * training of local technicians in installation and after-sales service (thus far, 200 technicians have been trained). 56 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Electrifying Villages in Siliana Governorate: A Case Study 8.21 In 1997, a PV project initiated in several remote villages of Siliana Gouvemorate brought electricity to some 200 rural homes, a primary school, and a health center. The project was implemented by the Tunisian Agency for Energy Management (AME)'3 and the Spanish Cooperation Agency (IPADE) within a framework of Tunisian and Spanish cooperation. Site Selection and Visits 8.22 AME and IPADE, with the help of local authorities, selected three villages in the delegation of Bouarada for PV electrification: Ftiss, Rmill, and Henchir Romen. Selection was based on number of residents, distance to the STEG grid, and distance to asphalt and dirt roads. 8.23 Next, local authorities established an initial list of 195 homes, a clinic, a primary school, and shrines (marabouts). Project staff then visited these sites and established a file for each that included information on location (distance to the grid and accessibility by vehicle); household (head of household, number of persons, professions, social status); house construction (number of rooms and construction type); and audio-visual appliances. 8.24 Although electrification of a mosque and public lighting had been envisioned, visits to the sites showed that there was no mosque in the area or potential sites for public lighting. On the other hand, electrification of a primary school and a health clinic were needed. Together with the local authorities, AME and IPADE decided to electrify both the school and the clinic. 8.25 Visits to household sites showed that some households either refused PV electrification (fearing it would prevent them from receiving grid electrification) or could not afford their contribution of 100 TD per system. Thus, a waiting list of beneficiaries was compiled. Technician Training 8.26 PV system installation was entrusted to local enterprises, while beneficiaries financed accessories for installation. Two local companies were selected: SINES (installation) and Solar Energy Systems (acquisition of accessories). 8.27 To ensure better follow-up and maintenance of the PV systems installed, the project undertook training of six local technicians in the three villages, who were employed by SINES and Solar Energy Systems. Training began with a one-week course on the theory of PV-system functioning, particularly the role of each component (e.g., module, regulator, battery), held at AME's regional services laboratory in Kef. This course was followed by one week of practical training on the principles of PV installation. As part of the course, technicians in the selected villages carried out four trial installations. Trainees who passed a theoretical exam received certificates for having participated in the course. 13In 1993, AME became ANER. Photovoltaics: Complementary Strategy for Isolated Users 57 Users' Association and Contribution 8.28 Together with the local authorities, a users' association was created, whose objectives were to: * ensure proper use of PV equipment and materials through sound maintenance and repair practices, in collaboration with AME, * ensure system maintenance beyond expiration of the warranty period, * organize participation of trained local technicians in installation work, and * collect funds needed for minor maintenance and repair and association management. 8.29 User contributions, set at 100 TD per beneficiary, covered the expenses of acquiring accessories and small parts for installing 202 PV systems (including those for the primary school and health clinic). Before collecting these funds, AME confirmed with STEG that registered households (those on the list) were not connected to the grid and were not scheduled to receive grid connection over the next five years. During the collection phase, some beneficiaries stated that they could not afford their contribution and requested credit facilities. Twenty-three beneficiaries did not wish to receive PV electrification and were replaced by others on the waiting list. Installation and Maintenance 8.30 On June 13, 1998, the systems were inaugurated. SINES established a file card for each PV installation, which the company and beneficiary co-signed. Table 8.3 shows the components and user types for the systems installed. The first maintenance check of all systems occurred four months after installation was completed. Table 8.3: Installed PV Systems, by Component and User Type Elementary school Health Component Home center PV module 2 4 8 Battery 2 6 12 Regulator I I I Onduleur - I I Bulbs 3 9 4 Source: ANER, 1998. 9 Lessons in Integrated Rural Development and Social Equity 9.1 Tunisia's achievement of 100 percent urban and 88 percent rural electrification is remarkable, all the more so because the country's definition of rural electrification is restricted to connections made outside incorporated areas. Compared to rural populations in other developing countries with high rates of electrification, Tunisia's rural population-although only 35 percent of the total population-is highly dispersed and isolated, with long distances between small groups of often scattered houses. This characteristic, combined with the Government's social commitment to connecting all households, has highly influenced program costs and choice of institutional set-up, distribution system, and technology. 9.2 Major factors key to the success of Tunisia's rural electrification program are: * national commitment to rural electrification as part of a broader, integrated rural development program emphasizing social equity; * effective institutional structure and coordination of project planning and selection; * utility's sound management and continuing process of technical innovation; * robust financial arrangements; and * complementary PV strategy to serve isolated users. National Commitment in a Multisector Development Context 9.3 Tunisia's rural electrification achievement has been motivated by continuing national commitment as part of a broader, integrated rural development program that has emphasized social equality. Since its independence from France in 1956, the country has been at the vanguard in promoting human resources development, including gender equity. This is evidenced by the PSC that was promulgated immediately after independence and the IVth Development Plan, implemented in 1972, whose three pillars were basic education (for girls and boys), improved health services (with an emphasis on family planning), and rural electrification (whose socioeconomic criteria included gender equity). 9.4 National commitment to rural electrification is also reflected in the personal initiatives of each president and strong societal support in using domestic resources to 59 60 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances fund rural electrification. Since 1977, the State's investment has increased from 45% to 85% of the total, amounting to more than 450 MTD. In response to Tunisia's clearly defined national development and social welfare policies, which have emphasized the importance of rural electrification, the country has received enthusiastic international donor support, of which the ADB has been the most significant source. 9.5 Regional planning processes and successive five-year plans, which have tightly incorporated rural electrification into broader objectives of integrated rural development, have produced synergistic effects. Indeed, growth in rural electrification and national socioeconomic indicators are strongly correlated. Informal surveys conducted in several rural areas attest to rural electrification's multiple benefits-as perceived by rural householders, especially women-in education, health and family planning, economic opportunities, and enhanced security. Integrating gender equity into the socioeconomic criteria for rural electrification has been an ongoing aspect of State support for and subsequent success of rural electrification. Effective Institutional Structure and Coordination 9.6 Regardless of the structure or process a country adopts for rural electrification, certain principles are essential to success. To reiterate, these include well-defined, coordinated roles for all agencies concerned and established procedures that ensure agency cooperation is perceived as fair. The Tunisian system scores well on both counts. 9.7 All agencies that participate in Tunisia's rural electrification program have well- defined roles. Coordination is ensured through an agency with a specific mandate for coordination. Equally important, policymaking and implementation agencies at both regional and national levels collaborate closely. Agency cooperation is facilitated through a project-selection process that is meticulous, orderly, and transparent. Through this process, concerns about social justice are addressed, thereby reducing political pressure in identifying projects, allowing for a more rational and economic long-term program. Utility Transparency and Innovation 9.8 STEG's effectiveness and efficiency have earned it both political and popular support. Much of the utility's success can be attributed to a clear mandate and a management structure that combines the benefits of centralized planning and design with decentralized operations. Published norms, guidelines, and standard contracts contribute to operational transparency. Benefits of Unleashing Technical Innovations 9.9 STEG has demonstrated a high-level capacity for adapting technology to meet Tunisia's clearly-defined, rural electrification objectives. Early on, the utility computerized its management systems and developed customized software applications, including a sophisticated inventory management system. 9.10 Introduction of the MALT three-phase/single-phase distribution system has dramatically demonstrated STEG's high level of innovative technical expertise. Indeed, Lessons in Integrated Rural Development and Social Equity 61 the utility's switch to the MALT system has been the single largest change introduced into the Tunisian program, permitting rapid expansion of rural electrification. In addition, the MALT system has provided a high level of service by reducing the rate and duration of outages. 9.11 That Tunisian engineers, with little international support, implemented the MALT system and solved its technical problems is testimony to the country's commitment to developing a well-educated cadre of professionals. As the utility's staff succeeded in problem-solving, they gradually developed an esprit de corps that gave them the confidence to propose and implement additional innovative, cost-cutting solutions. 9.12 Although the overall cost-cutting effects of the program's technical innovations have not been studied, they clearly have permitted the electrification of significantly more households within the same budget. The MALT distribution system alone is estimated to have saved 37 percent of costs, compared with the conventional three-phase system. Exemplary Commercial and Construction Practices 9.13 STEG's implementation of commercial practices-including control of non- technical losses, billing, and collection practices-has been outstanding. Overall system losses are only 13.4 percent (3.1 percent non-technical). Despite difficulties in delivering bills to isolated communities and their limited means of payment, rural consumers have an excellent payment record. Success factors include a customer management improvement program that has focused on sound meter-reading policies and practices, development of an integrated billing software program, and spreading out connection- cost payments. 9.14 Successful construction and implementation of rural electrification projects owes much to encouraging private-sector participation in construction and promoting local- industry efforts to supply equipment and materials. Effective Tariff Policy 9.15 Tariffs broadly reflect the varying costs of supplying HV, MV, and LV customers. All markets distinguish between off-peak and peak usage to encourage more efficient capacity use. LV supply, of which rural users account for 11 percent, has various tariffs designed to promote social equity and rural development. These include a lifeline tariff for those who consume less than 50 kWh per month, subsidized public lighting, and low tariffs for irrigation. Such tariffs benefit from a significant, yet apparently manageable, cross-subsidy. Although STEG does not publish detailed power- sector finances, it is believed that, over the last decade, there has been only a modest gap between electricity-sector costs and prices. Complementary PV Strategy 9.16 Tunisia's high-profile PV program-with its goal of providing a minimum 1 00-W level of electricity service to all households by 2010-reflects a commitment to including even the most remote rural areas in national development. Although PV currently i Appendix 1 Daily Accounts, Billing, and Receivables of Low- voltage Customers: BTJ Software Application Al-I The Basse Tension Journaliere (BTJ) software application integrates the management and follow-up of each phase preceding billing, from formulation of a request for a new connection through meter installation and hook-up. During this phase, the computerized software application facilitates following the progress of customers' connection requests and verifying or re-starting execution to ensure that all meters paid and installed pass through the billing chain to integrate the normal cycle of accounting and billing of use. The automatic follow-up minimizes unbilled energy consumption caused by not registering meters put into service. A1-2 BTJ involves a daily routine. Each day, the following are published: bills, meter readings, state of control and follow-up in meter reading errors and possible fraud, state of execution, orders for cut-offs of customers who have exceeded their payment period, orders to install meters, and state of subscription cancellations or disputes. Management of these daily tasks uses full-time, specialized teams throughout each two-month billing cycle and permits fluidity in STEG's cash flow. The former software application published all bills for an entire cycle at the same time, and all customers had approximately the same payment date. Thus, cash flow during this one period was massive, but poor during others. Numerous bill distributors and meter readers were required in order to visit all customers within a minimum amount of time; however, at other times during the cycle, they had little to do and were not used profitably. Al-3 When a customer's meter is read, s/he receives a bill within one-two days. The bill includes all details, including deadline for payment and date of the next meter reading so that the customer can plan for someone to be at home to give the meter reader access to the meter, which is installed inside the house. Customers away from home on the day of meter reading can record and call in the reading themselves in order to receive a bill corresponding to their exact consumption. A1-4 BTJ automatically allows for keeping current accounts specific to the management of LV subscribers (payment of connection costs, payment of bills, expenses of reconnection after cut-offs, and corrections to bills following meter-reading errors). Al-5 BTJ memorizes a history of consumption for a rolling year (six bills) for each LV subscriber. In case a customer is not at home or the meter is not read, consumption can be estimated based on the history of the last six bi-monthly bills. 65 66 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Al -6 BTJ introduces codes that, in theory, can facilitate later analysis of consumption, by providing statistics on electricity use and category of subscriber. Unfortunately, this coding is difficult to check, errors go uncorrected, and agents who input codes for electricity use often fail to check them, knowing that no one will reproach them; thus, this coding is unreliable. A1-7 Terminals linked to the central computer have been installed in the customer service windows of branch offices so that customer service representatives can directly consult the BTJ database to obtain information directly on customers' accounts. Al-8 With increased numbers of customers and saturation of the mainframe computer, the BTJ application has been decentralized to the regional office level. Appendix 2 Average Rate of National Value-added, By Item of Local Electrical System Equipment Item Average Group Item Supplier N(o) Cables Electric cable Cables Chakira 63.0 Tunisie Cables 63.0 Lighting set SIME 44.0 Transformers SACEM 51.0 Switchboards SM6 distribution switchboard TET > or 40% ELECTRO- MV & LV distribution switchboard CONDUCTEUR > or= 40% Single-phase, meter-mounting board SIAME 70.0 MV distribution switchboard COMPTO > or = 40% Switch cupboard SIME 54.0 Switches ELECTRO-CONDUCTEUR Section switch 65.7 Three-pole section switch COPEL 63.0 Fuse cutout ALPHA G.T.1 > or= 40% Circuit-breaker isolator SMEE > or = 40% COMPTO > or = 40% MV circuit breaker META 39.3 ELECTRO-CONDUCTEUR 65.0 Power circuit breaker SOMELEC > or = 40% ELECTRO-CONDUCTEUR Cutout 85.6 Single-pole cutout COPEL 61.9 Contactor TTE 57.0 Single-pole breaker TTI 66.0 67 68 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances |Breaker |SIAME |51.5 l Item A verage Group Item Supplier (%) MV and LV line accessories Branch anchoring clip ARELEC 49.5 Anchoring clip SIAME > or = 40% Anchoring clip for carrying neutral wire ARELEC 46.4 Connector SIAME 61.0 Branch connector PRECIMECA 64.0 ARELEC 70.2 Derivation circuit connector ARELEC 67.0 Grip with parallel grooves ARELEC 59.9 Aluminum wire connector ARELEC 66.2 Bimetal wire connector ARELEC 68.9 LV suspension set for twisted cables ARELEC 53.9 Wall hanging accessory for LV cable ARELEC 89.0 Branch isolated support ARELEC 46.1 Mounting bracket ARELEC 41.7 Wire end ferrule ARELEC 84.3 Alarm device PLYMOUTH Tunisie 84.0 Earthing Earth rod INDELEC > or= 40% SIDU 62.6 Pipes Galvanized welded pipe PAF 57.0 Bendy duct MTMP 50.3 PVC duct UNBOPLAST 55.0 Boxes Junction box SMEE 51.5 Sealing-end pothead SMEE 47.5 Line poles Round-iron pole El Fouledh 100.0 Pre-stressed, armed concrete pole BMS 100.0 KANAOUET 100.0 BONA 100.0 Overall Average 64.4 Appendix 3 Example of MALT Cost Reduction, Based on STEG Prices A3-1 To illustrate the cost reduction achieved, in current prices, using the single-phase MALT lines (versus the conventional European three-phase lines), a line representative of those that had already been studied was chosen from the rural network. The selected line was 1.44 km in length in ASTER 54.6 mm2, a typical section used in rural electrification. A3-2 The study method consisted of using the Tanouir MV, line-design software to 1) analyze the cost of the line as a three-phase MALT line (three wires for phases + neutral) and 2) suppress two phase conductors and add a neutral wire in order to study the same 1.44-km line in MALT single-phase (one phase + one neutral). The simulation was further analyzed by comparing suspended-type and pin insulator-type lines. The comparison allowed for estimating the cost reduction per kilometer resulting from introducing the pin-insulator technique. A3-3 Results of the study showed that, for the suspended string insulator line, 1 km of MALT single-phase line achieved a 35 percent reduction in cost over the MALT three- phase line and 27 percent over the European three-phase line; for the pin insulator line, 1 km of MALT single-phase line achieved a 42 percent reduction in cost over the MALT three-phase line and 37 percent over the European three-phase line (table A3. 1). Table A3.1: Summary of Cost-comparison Study Results Suspended Cost-cutting Achieved String Insulator Pin Insulator with Pin Insulator (9/6) Cost or Cost-savings Item Cost of I km of European MV, three-phase overhead line (US$)* 12,496 11,543 5.67 Cost of I km of MALT MV, single-phase overhead line (US$)* 8,146 6,665 18.00 Cost savings of I kin, single-phase, 2-wire line/MALT type, 4-wire line (%) 35 42 Cost savings of I km, single-phase, 2-wire line/European type, 33-wire line (%) 27 37 * I US$ = 1.45 TD (September 2001 exchange rate). 69 70 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances A3-4 Further, results showed that estimated cost reduction achieved using the pin insulator, single-phase line-versus the suspended insulator, single-phase line-was 18 percent, which approximates the 20 percent estimated by Essebaa (1994). Clearly, the more single-phase lines that are constructed, the more profitable the MALT three- phase/single-phase system becomes. As figure 7.1 illustrates (NRECA 1999), Tunisia's 42-percent cost reduction (total line cost of US$6,665/km) places the country between Bolivia (37 percent) and the Philippines (48 percent). A3-5 In general, the changeover to single-phase lines, at an additional cost of only 2 percent in the neutral grounding, allows for a considerable reduction in costs of wires, line accessories, and poles. The cost reduction in poles becomes even more important with the pin insulator technique, which allows an additional 10 percent reduction, compared to the European three-phase line (table A3.2). Table A3.2: Summary of Cost-cutting Distribution, by Item Groups Cost Reduction (°%o) of MALT Single-phase versus Overall Cost of European Three-phase Lines Suspended String Insulator or Suspension Chain Line Item Group Pin Insulator Line Conductors 6.6 7.0 Line accessories 13.5 11.5 Earthing (or grounding) -2.0 -2.2 Poles 7.2 17.3 Crossings (guy wires and anchors), galvanized cross-arms 1.7 3.1 Overall 27.0 36.7 A3-6 One should note that these estimates refer only to the particular lines studied here. A line having more slopes (due to uneven soil) or more curves will cost more. To estimate a valid average cost for all of Tunisia, it would be necessary to study several dozen lines, performing the above-described simulation for each. That time-consuming process would fail to yield exact results because of Tunisia's saturation of rural electrification; that is, the terrain and curves of the lines not yet constructed may differ from existing ones. Thus, costs may differ. Selected Readings African Development Bank. 1995a. The African Development Bank Experience with Rural Electrification: The Case of Tunisia. Workshop Proceedings on Financing Photovoltaic Rural Electrification in Developing Countries, March 5-7. Rome: Ente per le nuove tecnologie, l'energia e l'ambiente (ENEA). 1995b. Tunisie: Rapport d'Achevement, Projet d'Electrification Rurale (Electricite IV): Departement Infrastructure et Industrie, Region Nord (Banque Africaine de Developpement, Abidjan). . 1999. Rapport d'Evaluation du Projet d'Electrification Rurale (Electricite VI): Tunisie, Departement par pays Region Nord (Banque Africaine de D6veloppement, Abidjan). Amaimia, N6ji, and Amor Ounalli. 2001. Programme Tunisien d'Electrification Rurale par Systemes Photovoltarques. Tunis: National Agency for Renewable Energy. AME and GTZ. 1999. Solar Rural Electrification in Tunisia. Approach and Practical Experience, vols. 1 and 2. Tunis: Agence pour la Maitrise de l'Energie. ANER. 1996. Strategie de Developpement des Energies Renouvelables. Tunis: National Agency for Renewable Energy. 1998. Project d'e1ectrification de 200 foyers ruraux, d'une 6cole primaire et d'un dispensaire au Gouvernorat de Siliana, Cooperation Tuniso-Espagnole, Rapport de Synthese. Tunis: National Agency for Renewable Energy 1999. Rapport Annuel d'Activite. Tunis: National Agency for Renewable Energy. Belkhiria, Hachemi. 1996. Etude d'un projet pilote pour l'electrification rurale en 4.16kVmonophase. Tunis: Tunisian Electricity and Gas Company. 2001. Etude de l 'alimentation des zones de pompage par un reseau basse tension a 3fils et 2 niveaux de tension. Tunis: Tunisian Electricity and Gas Company. Berthier, Gregory. 2000. Les politiques d'electrification de la Tunisie: Des dernieres annees du protectorat aux premires ann&es de l'independance 1952-1962. Paris: Universite Paris X-Nanterre, Departement d'Histoire. Bouraoui, Soukaina. 2001. "Droits des femmes et evolution des rapports hommes- femmes depuis l'Ind6pendance." In Population et Developpement en Tunisie, eds. Jacques Vallin and Th6rese Locoh. Tunis: Centre d'Etudes et de Recherches Economiques et Sociales. 71 72 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances Chaib, Sawsen, Moncef Aissa, and Ahmed Ounalli. 2001. Enquete sur l'impact socio- economique de l'6lectrification rurale: M6thodologie et resultants, , STEG, TunisSTEG internal report, Tunis. ESMAP (Energy Sector Management Assistance Programme). 1990. "Tunisia: Interfuel Substitution Study: A Joint Report." ESMAP Report 114/90, World Bank, Washington, D.C. 1992a. "Power Efficiency Study." ESMAP Report 136/91, World Bank, Washington, D.C. 1992b. "Tunisia: Energy Management Strategy in the Residential and Tertiary Sectors." ESMAP Report 146/92, World Bank, Washington, D.C. 1996. "Tunisie: Les Potentiels de Valorisation des Energies Renouvelables." ESMAP Report 190A/96, vols. 1 and 2, World Bank, Washington, D.C. Essebaa, Hachemi. 1994. Le systeme MALT: un systeme de distribution adapte. Tunis: Tunisian Electricity and Gas Company. FAO. 1993. Evaluation du Programme Rural Integre (PDRI). Rome: Food and Agriculture Organization of the United Nations. Hicks, Jack, Allen Inversin, Mounir Majdoub, and Seyoum Solomon. 1993. Rural Electrification Evaluation Study: Tunisia. Washington, D.C.: National Rural Electrification Cooperative Association. International Herald Tribune. 2001. "Contemporary Tunisia: Women in Business," 13 August. Masmoudi, Radhouane. 1997. "l'Electrification Rurale." Revue Tunisienne de V 'Energie, No. 47 (Fourth Trimester). Nordic Consulting Group. 1997. Etude d'impact de secteur de l1energie, Tunisie: Aide Memoire. Abidjan. : African Development Bank. NRECA International. 1999. Reducing the Cost of Grid Extension for Rural Electrification. Washington, D.C.: Energy Sector Management Assistance Programme (ESMAP), The World Bank. Republic of Tunisia. Rapports Annuels sur les Indicateurs d'Infrastructure: Annees 1998-1999-2000. Tunis: Ministry of Economic Development, National Institute of Statistics. Rapport National sur le Developpement Humain en Tunisie: 1999. Tunis: Ministry of Economic Development, National Institute of Statistics. STEG. 1996. L'electrification rurale par la methode SWER: Rapport d'evaluation de V 'experience tunisienne. Tunis: Tunisian Electricity and Gas Company. Rapports Annuels d'Activite: 1980-1999. Tunis: Tunisian Electricity and Gas Company. Selected Readings 73 2000. Statistiques Retrospectives 1989-1999. Direction des Etudes et de la Planification. Tunis: Tunisian Electricity and Gas Company. World Bank. 2000a. Republic of Tunisia, Social and Structural Review 2000: Integrating into the World Economy and Sustainiing Economic and Social Progress. Washington, D.C.: The World Bank. 2000b. Memorandum from IBRD President to Executive Directors on a CAS of the World Bank Group for the Republic of Tunisia, Maghreb Country Management Unit, Middle East and North Africa Region. 2001. Tunisia: Country Brief. World Bank, Washington, D.C. Available at www.worldbank.org. 74 Joint UNDP/World Bank ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) LIST OF REPORTS ON COMPLETED ACTIVITIES Region/Country Activity/Report Title Date Number SUB-SAHARAN AFRICA (AFR) Africa Regional Anglophone Africa Household Energy Workshop (English) 07/88 085/88 Regional Power Seminar on Reducing Electric Power System Losses in Africa (English) 08/88 087/88 Institutional Evaluation of EGL (English) 02/89 098/89 Biomass Mapping Regional Workshops (English) 05/89 -- Francophone Household Energy Workshop (French) 08/89 -- Interafrican Electrical Engineering College: Proposals for Short- and Long-Term Development (English) 03/90 112/90 Biomass Assessment and Mapping (English) 03/90 -- Symposium on Power Sector Reform and Efficiency Improvement in Sub-Saharan Africa (English) 06/96 182/96 Commercialization of Marginal Gas Fields (English) 12/97 201/97 Commercilizing Natural Gas: Lessons from the Seminar in Nairobi for Sub-Saharan Africa and Beyond 01/00 225/00 Africa Gas Initiative - Main Report: Volume I 02/01 240/01 First World Bank Workshop on the Petroleum Products Sector in Sub-Saharan Africa 09/01 245/01 Ministerial Workshop on Women in Energy 10/01 250/01 Energy and Poverty Reduction: Proceedings from a Multi-Sector 03/03 266/03 And Multi-Stakeholder Workshop Addis Ababa, Ethiopia, October 23-25, 2002. Opportunities for Power Trade in the Nile Basin: Final Scoping Study 01/04 277/04 Energies modernes et reduction de la pauvrete: Un atelier multi-sectoriel. Actes de I'atelier regional. Dakar, Senegal, du 4 au 6 fevrier 2003 (French Only) 01/04 278/04 Energies modernes et reduction de la pauvrete: Un atelier multi-sectoriel. Actes de l'atelier regional. Douala, Cameroun 09/04 286/04 du 16-18 juillet 2003. (French Only) Energy and Poverty Reduction: Proceedings from the Global Village Energy Partnership (GVEP) Workshops held in Africa 01/05 298/05 Power Sector Reform in Africa: Assessing the Impact on Poor People 08/05 306/05 Angola Energy Assessment (English and Portuguese) 05/89 4708-ANG Power Rehabilitation and Technical Assistance (English) 10/91 142/91 Africa Gas Initiative - Angola: Volume II 02/01 240/01 Benin Energy Assessment (English and French) 06/85 5222-BEN Botswana Energy Assessment (English) 09/84 4998-BT Pump Electrification Prefeasibility Study (English) 01/86 047/86 Review of Electricity Service Connection Policy (English) 07/87 071/87 Tuli Block Farms Electrification Study (English) 07/87 072/87 Household Energy Issues Study (English) 02/88 -- Urban Household Energy Strategy Study (English) 05/91 132/91 Burkina Faso Energy Assessment (English and French) 01/86 5730-BUR Technical Assistance Program (English) 03/86 052/86 Urban Household Energy Strategy Study (English and French) 06/91 134/91 Burundi Energy Assessment (English) 06/82 3778-BU Petroleum Supply Management (English) 01/84 012/84 Status Report (English and French) 02/84 011/84 Region/Country Activity/Report Title Date Number Burundi Presentation of Energy Projects for the Fourth Five-Year Plan (1983-1987) (English and French) 05/85 036/85 Improved Charcoal Cookstove Strategy (English and French) 09/85 042/85 Peat Utilization Project (English) 11/85 046/85 Energy Assessment (English and French) 01/92 9215-BU Cameroon Africa Gas Initiative - Cameroon: Volume III 02/01 240/01 Cape Verde Energy Assessment (English and Portuguese) 08/84 5073-CV Household Energy Strategy Study (English) 02/90 110/90 Central African Republic Energy Assessment (French) 08/92 9898-CAR Chad Elements of Strategy for Urban Household Energy The Case of N'djamena (French) 12/93 160/94 Comoros Energy Assessment (English and French) 01/88 7104-COM In Search of Better Ways to Develop Solar Markets: The Case of Comoros 05/00 230/00 Congo Energy Assessment (English) 01/88 6420-COB Power Development Plan (English and French) 03/90 106/90 Africa Gas Initiative - Congo: Volume IV 02/01 240/01 C6te d'Ivoire Energy Assessment (English and French) 04/85 5250-IVC Improved Biomass Utilization (English and French) 04/87 069/87 Power System Efficiency Study (English) 12/87 -- Power Sector Efficiency Study (French) 02/92 140/91 Project of Energy Efficiency in Buildings (English) 09/95 175/95 Africa Gas Initiative - C6te d'Ivoire: Volume V 02/01 240/01 Ethiopia Energy Assessment (English) 07/84 4741 -ET Power System Efficiency Study (English) 10/85 045/85 Agricultural Residue Briquetting Pilot Project (English) 12/86 062/86 Bagasse Study (English) 12/86 063/86 Cooking Efficiency Project (English) 12/87 -- Energy Assessment (English) 02/96 179/96 Gabon Energy Assessment (English) 07/88 6915-GA Africa Gas Initiative - Gabon: Volume VI 02/01 240/01 The Gambia Energy Assessment (English) 11/83 4743-GM Solar Water Heating Retrofit Project (English) 02/85 030/85 Solar Photovoltaic Applications (English) 03/85 032/85 Petroleum Supply Management Assistance (English) 04/85 035/85 Ghana Energy Assessment (English) 11/86 6234-GH Energy Rationalization in the Industrial Sector (English) 06/88 084/88 Sawmill Residues Utilization Study (English) 11/88 074/87 Industrial Energy Efficiency (English) 11/92 148/92 Corporatization of Distribution Concessions through Capitalization 12/03 272/03 Guinea Energy Assessment (English) 11/86 6137-GUI Household Energy Strategy (English and French) 01/94 163/94 Guinea-Bissau Energy Assessment (English and Portuguese) 08/84 5083-GUB Recommended Technical Assistance Projects (English & Portuguese) 04/85 033/85 Management Options for the Electric Power and Water Supply Subsectors (English) 02/90 100/90 Power and Water Institutional Restructuring (French) 04/91 118/91 Kenya Energy Assessment (English) 05/82 3800-KE Power System Efficiency Study (English) 03/84 014/84 Status Report (English) 05/84 016/84 Coal Conversion Action Plan (English) 02/87 -- 2 Region/Country Activity/Report Title Date Number Solar Water Heating Study (English) 02/87 066/87 Kenya Peri-Urban Woodfuel Development (English) 10/87 076/87 Power Master Plan (English) 11/87 -- Power Loss Reduction Study (English) 09/96 186/96 Implementation Manual: Financing Mechanisms for Solar Electric Equipment 07/00 231/00 Lesotho Energy Assessment (English) 01/84 4676-LSO Liberia Energy Assessment (English) 12/84 5279-LBR Recommended Technical Assistance Projects (English) 06/85 038/85 Power System Efficiency Study (English) 12/87 081/87 Madagascar Energy Assessment (English) 01/87 5700-MAG Power System Efficiency Study (English and French) 12/87 075/87 Environmental Impact of Woodfuels (French) 10/95 176/95 Malawi Energy Assessment (English) 08/82 3903-MAL Technical Assistance to Improve the Efficiency of Fuelwood Use in the Tobacco Industry (English) 11/83 009/83 Status Report (English) 01/84 013/84 Mali Energy Assessment (English and French) 11/91 8423-MLI Household Energy Strategy (English and French) 03/92 147/92 Islamic Republic of Mauritania Energy Assessment (English and French) 04/85 5224-MAU Household Energy Strategy Study (English and French) 07/90 123/90 Mauritius Energy Assessment (English) 12/81 3510-MAS Status Report (English) 10/83 008/83 Power System Efficiency Audit (English) 05/87 070/87 Bagasse Power Potential (English) 10/87 077/87 Energy Sector Review (English) 12/94 3643-MAS Mozambique Energy Assessment (English) 01/87 6128-MOZ Household Electricity Utilization Study (English) 03/90 113/90 Electricity Tariffs Study (English) 06/96 181/96 Sample Survey of Low Voltage Electricity Customers 06/97 195/97 Namibia Energy Assessment (English) 03/93 11320-NAM Niger Energy Assessment (French) 05/84 4642-NIR Status Report (English and French) 02/86 051/86 Improved Stoves Project (English and French) 12/87 080/87 Household Energy Conservation and Substitution (English and French) 01/88 082/88 Nigeria Energy Assessment (English) 08/83 4440-UNI Energy Assessment (English) 07/93 11672-UNI Strategic Gas Plan 02/04 279/04 Rwanda Energy Assessment (English) 06/82 3779-RW Status Report (English and French) 05/84 017/84 Improved Charcoal Cookstove Strategy (English and French) 08/86 059/86 Improved Charcoal Production Techniques (English and French) 02/87 065/87 Energy Assessment (English and French) 07/91 8017-RW Commercialization of Improved Charcoal Stoves and Carbonization Techniques Mid-Term Progress Report (English and French) 12/91 141/91 SADC SADC Regional Power Interconnection Study, Vols. I-IV (English) 12/93 - SADCC SADCC Regional Sector: Regional Capacity-Building Program for Energy Surveys and Policy Analysis (English) 1191 - Sao Tome and Principe Energy Assessment (English) 10/85 5803-STP Senegal Energy Assessment (English) 07/83 4182-SE Status Report (English and French) 10/84 025/84 3 Region/Country Activity/Report Title Date Number Industrial Energy Conservation Study (English) 05/85 037/85 Senegal Preparatory Assistance for Donor Meeting (English and French) 04/86 056/86 Urban Household Energy Strategy (English) 02/89 096/89 Industrial Energy Conservation Program (English) 05/94 165/94 Seychelles Energy Assessment (English) 01/84 4693-SEY Electric Power System Efficiency Study (English) 08/84 021/84 Sierra Leone Energy Assessment (English) 10/87 6597-SL Somalia Energy Assessment (English) 12/85 5796-SO Republic of South Africa Options for the Structure and Regulation of Natural Gas Industry (English) 05/95 172/95 Sudan Management Assistance to the Ministry of Energy and Mining 05/83 003/83 Energy Assessment (English) 07/83 4511-SU Power System Efficiency Study (English) 06/84 018/84 Status Report (English) 11/84 026/84 Wood Energy/Forestry Feasibility (English) 07/87 073/87 Swaziland Energy Assessment (English) 02/87 6262-SW Household Energy Strategy Study 10/97 198/97 Tanzania Energy Assessment (English) 11/84 4969-TA Peri-Urban Woodfuels Feasibility Study (English) 08/88 086/88 Tobacco Curing Efficiency Study (English) 05/89 102/89 Remote Sensing and Mapping of Woodlands (English) 06/90 -- Industrial Energy Efficiency Technical Assistance (English) 08/90 122/90 Power Loss Reduction Volume 1: Transmission and Distribution System Technical Loss Reduction and Network Development (English) 06/98 204A/98 Power Loss Reduction Volume 2: Reduction of Non-Technical Losses (English) 06/98 204B/98 Togo Energy Assessment (English) 06/85 5221-TO Wood Recovery in the Nangbeto Lake (English and French) 04/86 055/86 Power Efficiency Improvement (English and French) 12/87 078/87 Uganda Energy Assessment (English) 07/83 4453-UG Status Report (English) 08/84 020/84 Institutional Review of the Energy Sector (English) 01/85 029/85 Energy Efficiency in Tobacco Curing Industry (English) 02/86 049/86 Fuelwood/Forestry Feasibility Study (English) 03/86 053/86 Power System Efficiency Study (English) 12/88 092/88 Energy Efficiency Improvement in the Brick and Tile Industry (English) 02/89 097/89 Tobacco Curing Pilot Project (English) 03/89 UNDP Terminal Report Energy Assessment (English) 12/96 193/96 Rural Electrification Strategy Study 09/99 221/99 Zaire Energy Assessment (English) 05/86 5837-ZR Zambia Energy Assessment (English) 01/83 4110-ZA Status Report (English) 08/85 039/85 Energy Sector Institutional Review (English) 11/86 060/86 Power Subsector Efficiency Study (English) 02/89 093/88 Energy Strategy Study (English) 02/89 094/88 Urban Household Energy Strategy Study (English) 08/90 121/90 Zimbabwe Energy Assessment (English) 06/82 3765-ZIM Power System Efficiency Study (English) 06/83 005/83 Status Report (English) 08/84 019/84 Power Sector Management Assistance Project (English) 04/85 034/85 4 Region/Country Activity/Report Title Date Number Power Sector Management Institution Building (English) 09/89 -- Zimbabwe Petroleum Management Assistance (English) 12/89 109/89 Charcoal Utilization Pre-feasibility Study (English) 06/90 119/90 Integrated Energy Strategy Evaluation (English) 01/92 8768-ZIM Energy Efficiency Technical Assistance Project: Strategic Framework for a National Energy Efficiency Improvement Program (English) 04/94 -- Capacity Building for the National Energy Efficiency Improvement Programme (NEEIP) (English) 12/94 -- Rural Electrification Study 03/00 228/00 EAST ASIA AND PACIFIC (EAP) Asia Regional Pacific Household and Rural Energy Seminar (English) 11/90 China County-Level Rural Energy Assessments (English) 05/89 101/89 Fuelwood Forestry Preinvestment Study (English) 12/89 105/89 Strategic Options for Power Sector Reform in China (English) 07/93 156/93 Energy Efficiency and Pollution Control in Township and Village Enterprises (TVE) Industry (English) 11/94 168/94 Energy for Rural Development in China: An Assessment Based on a Joint Chinese/ESMAP Study in Six Counties (English) 06/96 183/96 Improving the Technical Efficiency of Decentralized Power Companies 09/99 222/99 Air Pollution and Acid Rain Control: The Case of Shijiazhuang City 10/03 267/03 and the Changsha Triangle Area Toward a Sustainable Coal Sector In China 07/04 287/04 Fiji Energy Assessment (English) 06/83 4462-FIJ Indonesia Energy Assessment (English) 11/81 3543-IND Status Report (English) 09/84 022/84 Power Generation Efficiency Study (English) 02/86 050/86 Energy Efficiency in the Brick, Tile and Lime Industries (English) 04/87 067/87 Diesel Generating Plant Efficiency Study (English) 12/88 095/88 Urban Household Energy Strategy Study (English) 02/90 107/90 Biomass Gasifier Preinvestment Study Vols. I & II (English) 12/90 124/90 Prospects for Biomass Power Generation with Emphasis on Palm Oil, Sugar, Rubberwood and Plywood Residues (English) 11/94 167/94 Lao PDR Urban Electricity Demand Assessment Study (English) 03/93 154/93 Institutional Development for Off-Grid Electrification 06/99 215/99 Malaysia Sabah Power System Efficiency Study (English) 03/87 068/87 Gas Utilization Study (English) 09/91 9645-MA Mongolia Energy Efficiency in the Electricity and District Heating Sectors 10/01 247/01 Improved Space Heating Stoves for Ulaanbaatar 03/02 254/02 Myanmar Energy Assessment (English) 06/85 5416-BA Papua New Guinea Energy Assessment (English) 06/82 3882-PNG Status Report (English) 07/83 006/83 Institutional Review in the Energy Sector (English) 10/84 023/84 Power Tariff Study (English) 10/84 024/84 Philippines Commercial Potential for Power Production from Agricultural Residues (English) 12/93 157/93 Energy Conservation Study (English) 08/94 -- 5 Region/Country Activity/Report Title Date Number Philippines Strengthening the Non-Conventional and Rural Energy Development Program in the Philippines: A Policy Framework and Action Plan 08/01 243/01 Rural Electrification and Development in the Philippines: Measuring the Social and Economic Benefits 05/02 255/02 Solomon Islands Energy Assessment (English) 06/83 4404-SOL Energy Assessment (English) 01/92 979-SOL South Pacific Petroleum Transport in the South Pacific (English) 05/86 -- Thailand Energy Assessment (English) 09/85 5793-TH Rural Energy Issues and Options (English) 09/85 044/85 Accelerated Dissemination of Improved Stoves and Charcoal Kilns (English) 09/87 079/87 Northeast Region Village Forestry and Woodfuels Preinvestment Study (English) 02/88 083/88 Impact of Lower Oil Prices (English) 08/88 -- Coal Development and Utilization Study (English) 10/89 -- Why Liberalization May Stall in a Mature Power Market: A Review 12/03 270/03 of the Technical and Political Economy Factors that Constrained the Electricity Sector Reform in Thailand 1998-2002 Reducing Emissions from Motorcycles in Bangkok 10/03 275/03 Tonga Energy Assessment (English) 06/85 5498-TON Vanuatu Energy Assessment (English) 06/85 5577-VA Vietnam Rural and Household Energy-Issues and Options (English) 01/94 161/94 Power Sector Reform and Restructuring in Vietnam: Final Report to the Steering Committee (English and Vietnamese) 09/95 174/95 Household Energy Technical Assistance: Improved Coal Briquetting and Commercialized Dissemination of Higher Efficiency Biomass and Coal Stoves (English) 01/96 178/96 Petroleum Fiscal Issues and Policies for Fluctuating Oil Prices In Vietnam 02/01 236/01 An Overnight Success: Vietnam's Switch to Unleaded Gasoline 08/02 257/02 The Electricity Law for Vietnam-Status and Policy Issues- The Socialist Republic of Vietnam 08/02 259/02 Petroleum Sector Technical Assistance for the Revision of the 12/03 269/03 Existing Legal and Regulatory Framework Western Samoa Energy Assessment (English) 06/85 5497-WSO SOUTH ASIA (SAS) Bangladesh Energy Assessment (English) 10/82 3873-BD Priority Investment Program (English) 05/83 002/83 Status Report (English) 04/84 015/84 Power System Efficiency Study (English) 02/85 031/85 Small Scale Uses of Gas Pre-feasibility Study (English) 12/88 -- Reducing Emissions from Baby-Taxis in Dhaka 01/02 253/02 India Opportunities for Commercialization of Non-conventional Energy Systems (English) 11/88 091/88 Maharashtra Bagasse Energy Efficiency Project (English) 07/90 120/90 Mini-Hydro Development on Irrigation Dams and Canal Drops Vols. I, II and III (English) 07/91 139/91 WindFarm Pre-Investment Study (English) 12/92 150/92 Power Sector Reform Seminar (English) 04/94 166/94 6 Region/Country Activity/Report Title Date Number Environmental Issues in the Power Sector (English) 06/98 205/98 India Environmental Issues in the Power Sector: Manual for Environmental Decision Making (English) 06/99 213/99 Household Energy Strategies for Urban India: The Case of Hyderabad 06/99 214/99 Greenhouse Gas Mitigation In the Power Sector: Case Studies From India 02/01 237/01 Energy Strategies for Rural India: Evidence from Six States 08/02 258/02 Household Energy, Indoor Air Pollution, and Health 11/02 261/02 Access of the Poor to Clean Household Fuels 07/03 263/03 The Impact of Energy on Women's Lives in Rural India 01/04 276/04 Environmental Issues in the Power Sector: Long-Term Impacts And Policy Options for Rajasthan 10/04 292/04 Environmental Issues in the Power Sector: Long-Term Impacts 10/04 293/04 And Policy Options for Karnataka Nepal Energy Assessment (English) 08/83 4474-NEP Status Report (English) 01/85 028/84 Energy Efficiency & Fuel Substitution in Industries (English) 06/93 158/93 Pakistan Household Energy Assessment (English) 05/88 -- Assessment of Photovoltaic Programs, Applications, and Markets (English) 10/89 103/89 Pakistan National Household Energy Survey and Strategy Formulation Study: Project Terminal Report (English) 03/94 -- Managing the Energy Transition (English) 10/94 Lighting Efficiency Improvement Program Phase 1: Commercial Buildings Five Year Plan (English) 10/94 Clean Fuels 10/01 246/01 Regional Toward Cleaner Urban Air in South Asia: Tackling Transport 03/04 281/04 Pollution, Understanding Sources. Sri Lanka Energy Assessment (English) 05/82 3792-CE Power System Loss Reduction Study (English) 07/83 007/83 Status Report (English) 01/84 010/84 Industrial Energy Conservation Study (English) 03/86 054/86 Sustainable Transport Options for Sri Lanka: Vol. I 02/03 262/03 Greenhouse Gas Mitigation Options in the Sri Lanka Power Sector: Vol. II 02/03 262/03 Sri Lanka Electric Power Technology Assessment (SLEPTA): Vol. III 02/03 262/03 Energy and Poverty Reduction: Proceedings from South Asia 11/03 268/03 Practitioners Workshop How Can Modem Energy Services Contribute to Poverty Reduction? Colombo, Sri Lanka, June 2-4, 2003 EUROPE AND CENTRAL ASIA (ECA) Armenia Development of Heat Strategies for Urban Areas of Low-income 04/04 282/04 Transition Economies. Urban Heating Strategy for the Republic Of Armenia. Including a Summary of a Heating Strategy for the Kyrgyz Republic Bulgaria Natural Gas Policies and Issues (English) 10/96 188/96 Energy Environment Review 10/02 260/02 Central Asia and The Caucasus Cleaner Transport Fuels in Central Asia and the Caucasus 08/01 242/01 Central and Eastern Europe Power Sector Reform in Selected Countries 07/97 196/97 7 Region/Country Activity/Report Title Date Number Increasing the Efficiency of Heating Systems in Central and Eastern Europe and the Former Soviet Union (English and Russian) 08/00 234/00 The Future of Natural Gas in Eastern Europe (English) 08/92 149/92 Kazakhstan Natural Gas Investment Study, Volumes 1, 2 & 3 12/97 199/97 Kazakhstan & Kyrgyzstan Opportunities for Renewable Energy Development 11/97 16855-KAZ Poland Energy Sector Restructuring Program Vols. I-V (English) 01/93 153/93 Natural Gas Upstream Policy (English and Polish) 08/98 206/98 Energy Sector Restructuring Program: Establishing the Energy Regulation Authority 10/98 208/98 Portugal Energy Assessment (English) 04/84 4824-PO Romania Natural Gas Development Strategy (English) 12/96 192/96 Private Sector Participation in Market-Based Energy-Efficiency 11/03 274/03 Financing Schemes: Lessons Learned from Romania and International Experiences. Slovenia Workshop on Private Participation in the Power Sector (English) 02/99 211/99 Turkey Energy Assessment (English) 03/83 3877-TU Energy and the Environment: Issues and Options Paper 04/00 229/00 Energy and Environment Review: Synthesis Report 12/03 273/03 MIDDLE EAST AND NORTH AFRICA (MNA) Arab Republic of Egypt Energy Assessment (English) 10/96 189/96 Energy Assessment (English and French) 03/84 4157-MOR Status Report (English and French) 01/86 048/86 Morocco Energy Sector Institutional Development Study (English and French) 07/95 173/95 Natural Gas Pricing Study (French) 10/98 209/98 Gas Development Plan Phase II (French) 02/99 210/99 Syria Energy Assessment (English) 05/86 5822-SYR Electric Power Efficiency Study (English) 09/88 089/88 Energy Efficiency Improvement in the Cement Sector (English) 04/89 099/89 Energy Efficiency Improvement in the Fertilizer Sector (English) 06/90 115/90 Tunisia Fuel Substitution (English and French) 03/90 -- Power Efficiency Study (English and French) 02/92 136/91 Energy Management Strategy in the Residential and Tertiary Sectors (English) 04/92 146/92 Renewable Energy Strategy Study, Volume I (French) 11/96 190A/96 Renewable Energy Strategy Study, Volume II (French) 11/96 190B/96 Rural Electrification in Tunisia: National Commitment, Efficient Implementation and Sound Finances 08/05 307/05 Yemen Energy Assessment (English) 12/84 4892-YAR Energy Investment Priorities (English) 02/87 6376-YAR Household Energy Strategy Study Phase I (English) 03/91 126/91 LATIN AMERICA AND THE CARIBBEAN REGION (LCR) LCR Regional Regional Seminar on Electric Power System Loss Reduction in the Caribbean (English) 07/89 -- Elimination of Lead in Gasoline in Latin America and the Caribbean (English and Spanish) 04/97 194/97 8 Region/Country Activity/Report Title Date Number LCR Regional Elimination of Lead in Gasoline in Latin America and the Caribbean - Status Report (English and Spanish) 12/97 200/97 Harmonization of Fuels Specifications in Latin America and the Caribbean (English and Spanish) 06/98 203/98 Energy and Poverty Reduction: Proceedings from the Global Village Energy Partnership (GVEP) Workshop held in Bolivia 06/05 202/05 Power Sector Reform and the Rural Poor in Central America 12/04 297/04 Estudio Comparativo Sobre la Distribuci6n de la Renta Petrolera en Bolivia, Colombia, Ecuador y Peru 08/05 304/05 Bolivia Energy Assessment (English) 04/83 4213-BO National Energy Plan (English) 12/87 -- La Paz Private Power Technical Assistance (English) 11/90 111/90 Pre-feasibility Evaluation Rural Electrification and Demand Assessment (English and Spanish) 04/91 129/91 National Energy Plan (Spanish) 08/91 131/91 Private Power Generation and Transmission (English) 01/92 137/91 Natural Gas Distribution: Economics and Regulation (English) 03/92 125/92 Natural Gas Sector Policies and Issues (English and Spanish) 12/93 164/93 Household Rural Energy Strategy (English and Spanish) 01/94 162/94 Preparation of Capitalization of the Hydrocarbon Sector 12/96 191/96 Introducing Competition into the Electricity Supply Industry in Developing Countries: Lessons from Bolivia 08/00 233/00 Final Report on Operational Activities Rural Energy and Energy Efficiency 08/00 235/00 Oil Industry Training for Indigenous People: The Bolivian Experience (English and Spanish) 09/01 244/01 Capacitaci6n de Pueblos Indigenas en la Actividad Petrolera. Fase II 07/04 290/04 Estudio Sobre Aplicaciones en Pequefia Escala de Gas Natural 07/04 291/04 Brazil Energy Efficiency & Conservation: Strategic Partnership for Energy Efficiency in Brazil (English) 01/95 170/95 Hydro and Thermal Power Sector Study 09/97 197/97 Rural Electrification with Renewable Energy Systems in the Northeast: A Preinvestment Study 07/00 232/00 Reducing Energy Costs in Municipal Water Supply Operations 07/03 265/03 "Learning-while-doing" Energy M&T on the Brazilian Frontlines Chile Energy Sector Review (English) 08/88 7129-CH Colombia Energy Strategy Paper (English) 12/86 -- Power Sector Restructuring (English) 11/94 169/94 Colombia Energy Efficiency Report for the Commercial and Public Sector (English) 06/96 184/96 Costa Rica Energy Assessment (English and Spanish) 01/84 4655-CR Recommnended Technical Assistance Projects (English) 11/84 027/84 Forest Residues Utilization Study (English and Spanish) 02/90 108/90 Dominican Republic Energy Assessment (English) 05/91 8234-DO Ecuador Energy Assessment (Spanish) 12/85 5865-EC Energy Strategy Phase I (Spanish) 07/88 -- Energy Strategy (English) 04/91 -- Private Mini-hydropower Development Study (English) 11/92 Energy Pricing Subsidies and Interfuel Substitution (English) 08/94 11798-EC Energy Pricing, Poverty and Social Mitigation (English) 08/94 12831 -EC Guatemala Issues and Options in the Energy Sector (English) 09/93 12160-GU Health Impacts of Traditional Fuel Use 08/04 284/04 9 RegionJCountry Activity/Report Title Date Number Haiti Energy Assessment (English and French) 06/82 3672-HA Status Report (English and French) 08/85 041/85 Household Energy Strategy (English and French) 12/91 143/91 Honduras Energy Assessment (English) 08/87 6476-HO Petroleum Supply Management (English) 03/91 128/91 Jamaica Energy Assessment (English) 04/85 5466-JM Petroleum Procurement, Refining, and Distribution Study (English) 11/86 061/86 Energy Efficiency Building Code Phase I (English) 03/88 -- Energy Efficiency Standards and Labels Phase I (English) 03/88 -- Jamaica Management Information System Phase I (English) 03/88 -- Charcoal Production Project (English) 09/88 090/88 FIDCO Sawmill Residues Utilization Study (English) 09/88 088/88 Energy Sector Strategy and Investment Planning Study (English) 07/92 135/92 Mexico Improved Charcoal Production Within Forest Management for the State of Veracruz (English and Spanish) 08/91 138/91 Energy Efficiency Management Technical Assistance to the Comisi6n Nacional para el Ahorro de Energia (CONAE) (English) 04/96 180/96 Energy Environment Review 05/01 241/01 Nicaragua Modernizing the Fuelwood Sector in Managua and Le6n 12/01 252/01 Panama Power System Efficiency Study (English) 06/83 004/83 Paraguay Energy Assessment (English) 10/84 5145-PA Recommended Technical Assistance Projects (English) 09/85 -- Status Report (English and Spanish) 09/85 043/85 Peru Energy Assessment (English) 01/84 4677-PE Status Report (English) 08/85 040/85 Proposal for a Stove Dissemination Program in the Sierra (English and Spanish) 02/87 064/87 Energy Strategy (English and Spanish) 12/90 -- Study of Energy Taxation and Liberalization of the Hydrocarbons Sector (English and Spanish) 120/93 159/93 Reform and Privatization in the Hydrocarbon Sector (English and Spanish) 07/99 216/99 Rural Electrification 02/01 238/01 Saint Lucia Energy Assessment (English) 09/84 5111 -SLU St. Vincent and the Grenadines Energy Assessment (English) 09/84 5103-STV Sub Andean Environmental and Social Regulation of Oil and Gas Operations in Sensitive Areas of the Sub-Andean Basin (English and Spanish) 07/99 217/99 Trinidad and Tobago Energy Assessment (English) 12/85 5930-TR GLOBAL Energy End Use Efficiency: Research and Strategy (English) 11/89 -- Women and Energy--A Resource Guide The International Network: Policies and Experience (English) 04/90 -- Guidelines for Utility Customer Management and Metering (English and Spanish) 07/91 -- Assessment of Personal Computer Models for Energy Planning in Developing Countries (English) 10/91 -- Long-Term Gas Contracts Principles and Applications (English) 02/93 152/93 10 Region/Country Activity/Report Title Date Number Comparative Behavior of Firms Under Public and Private Ownership (English) 05/93 155/93 Development of Regional Electric Power Networks (English) 10/94 -- Roundtable on Energy Efficiency (English) 02/95 171/95 Assessing Pollution Abatement Policies with a Case Study of Ankara (English) 11/95 177/95 A Synopsis of the Third Annual Roundtable on Independent Power Projects: Rhetoric and Reality (English) 08/96 187/96 Rural Energy and Development Roundtable (English) 05/98 202/98 A Synopsis of the Second Roundtable on Energy Efficiency: Institutional and Financial Delivery Mechanisms (English) 09/98 207/98 The Effect of a Shadow Price on Carbon Emission in the Energy Portfolio of the World Bank: A Carbon Backcasting Exercise (English) 02/99 212/99 Increasing the Efficiency of Gas Distribution Phase 1: Case Studies and Thematic Data Sheets 07/99 218/99 Global Energy Sector Reform in Developing Countries: A Scorecard 07/99 219/99 Global Lighting Services for the Poor Phase II: Text Marketing of Small "Solar" Batteries for Rural Electrification Purposes 08/99 220/99 A Review of the Renewable Energy Activities of the UNDP/ World Bank Energy Sector Management Assistance Programme 1993 to 1998 11/99 223/99 Energy, Transportation and Environment: Policy Options for Environmental Improvement 12/99 224/99 Privatization, Competition and Regulation in the British Electricity Industry, With Implications for Developing Countries 02/00 226/00 Reducing the Cost of Grid Extension for Rural Electrification 02/00 227/00 Undeveloped Oil and Gas Fields in the Industrializing World 02/01 239/01 Best Practice Manual: Promoting Decentralized Electrification Investment 10/01 248/01 Peri-Urban Electricity Consumers-A Forgotten but Important Group: What Can We Do to Electrify Them? 10/01 249/01 Village Power 2000: Empowering People and Transforming Markets 10/01 251/01 Private Financing for Community Infrastructure 05/02 256/02 Stakeholder Involvement in Options Assessment: 07/03 264/03 Promoting Dialogue in Meeting Water and Energy Needs: A Sourcebook A Review of ESMAP's Energy Efficiency Portfolio 11/03 271/03 A Review of ESMAP's Rural Energy and Renewable Energy 04/04 280/04 Portfolio ESMAP Renewable Energy and Energy Efficiency Reports 05/04 283/04 1998-2004 (CD Only) Regulation of Associated Gas Flaring and Venting: A Global 08/04 285/04 Overview and Lessons Learnedfrom International Experience ESMAP Gender in Energy Reports and Other related Information 11/04 288/04 (CD Only) ESMAP Indoor Air Pollution Reports and Other related Information 11/04 289/04 (CD Only) 11 IES4^M AP The World Bank 1818 H Street, NW Washington, DC 20433 USA Tel.: 1.202.458.2321 Fax.: 1.202.522.3018 Internet: www.worldbank.org/esmap Email: esmap@worldbank.org _-= .......... -F-r ,t- 1 ^~~~~~N '. At 77J~~~~~~~~~b The World Bank ' o'~~~~~~~~~- ; r .r~~~~~~ z - W - -*~~~Vi'- U N U The World Bank