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Environment

Program Data Sheet
934-003; IR 3.3

CENTRAL OPERATING UNIT: Bureau for Economic Growth, Agriculture and Trade: Environment (EGAT/ENV) PROGRAM TITLE: Energy Production; Clean Energy STRATEGIC OBJECTIVE AND NUMBER: Increased Environmentally Sustainable Energy Production and Use. IR 3.3 Clean Energy Production and Use STATUS: Continuing PLANNED FY 2002 OBLIGATIONS AND FUNDING SOURCE: $4,200,000 DA PROPOSED FY 2003 OBLIGATIONS AND FUNDING SOURCE: $3,400,000 DA INITIAL OBLIGATION: FY 1999      ESTIMATED COMPLETION DATE: FY 2008

Summary: USAID works to create:

  • the institutional scaffolding (i.e. transparent, predictable and enforceable rules) for the energy sector;
  • a public sector supportive of energy markets; and
  • economically sustainable transactions for energy products and services

    The program targets energy infrastructures of developing countries that are particularly well positioned to make use of environmentally sustainable energy technologies.

    Inputs, Outputs and Activities: FY 2002 Program: USAID will help establish free-market policies and strengthen energy and environmental institutions that enable more efficient power production and private-sector participation. The program will improve public- and private-sector institutional ability to administer the energy sector, allow for more effective delivery of energy services to rural and urban populations, and expand improved urban environmental management systems. In addition, the program will continue assisting the Economic Community of West African States to develop training and technical assistance for the West African Natural Gas Pipeline Project. This assistance will focus on improving the capacity of energy officials in Nigeria, Togo, Benin, and Ghana to negotiate a commercially developed and managed project with private-sector pipeline partners. It will produce greater availability of gas to alleviate the current regional energy crisis, more reliable access to electricity, and less greenhouse gas emissions from the flaring of natural gas. In parallel, the activity will help develop a power pool in West Africa to allow more efficient investments and improved energy services through energy trade.

    In sub-Saharan Africa, the program will continue efforts to develop cleaner energy supplies by facilitating international trade in electricity by enhancing transnational markets, by tapping market resources for energy development, and by reforming electricity tariffs. In Zambia, the program will continue to support government privatization of its electric utility.

    In Mexico, USAID will work with the Secretariat of Energy and the state electricity utility (CFE) to address environmental permitting and other legal issues related to energy-sector project development. The Government of Mexico will make modifications to the federal public procurement law which will allow CFE (the largest electric utility in Mexico) to enter into joint ventures and stock associations. These developments will assist CFE in attracting domestic and foreign capital for energy-sector infrastructure development.

    In Indonesia, the program will continue to work with electricity and fuels sector officials to implement newly passed legislation and regulations to ensure that transparent market mechanisms are implemented and that energy supplies and use are economically efficient.

    Planned FY 2003 Program: USAID plans to use FY 2003 resources requested in this Budget Justification to support the strategic realignment of clean energy and environmental management activities to more effectively address the delivery of energy services to rural and urban populations, and the governance of the sector that enables such changes to occur. A thorough review of existing programs will lead to continuing some activities (e.g., sector restructuring and regulatory reform, and improving environmental performance of industries and municipalities) and starting new ones (e.g., supporting trade in energy services and technology, and expanding the commercial provision of energy services in urban slum areas). Program activities will introduce innovative technologies to decrease GHG emissions and other local pollutants from conventional fossil fuel combustion. USAID-supported contractors will broker eleven public-private partnerships to produce investments in new clean-energy production capacity and more efficient management of facilities.

    Performance and Results: In sub-Saharan Africa, more than $2 billion was saved by power-pooling activities that increased regional transmission efficiency and promoted transnational economic growth. In India, a partnership between a U.S. electric motor firm and the country’s largest automaker helped to reduce lead and other air pollutants emitted in urban areas. In Mexico, program activities facilitated use of advanced emissions reduction technology in Manzanillo, which resulted in significant efficiency improvements and reductions in air pollution emissions. The success of the Manzanillo pilot installation (the plant supplies 10% of Mexico's power) led the national petroleum company to consider installing the technology in over 9,000 megawatts of production capacity. New partnerships were successfully initiated among U.S. corporations and developing country counterparts through an agreement with the Business Council for Sustainable Energy (BCSE). Other partnerships among U.S. and developing country utilities and regulatory agencies were created through an agreement with the United States Energy Association.

    Principal Contractors, Grantees or Agencies: The program implements activities through Advanced Engineering Associates International, Nexant, PA Government Services, Academy for Education Development, CORE International, and Institute for International Education, as well as with the U.S. Department of Agriculture, U.S. Energy Association and the Business Council for Sustainable Energy. Activities are coordinated with Multilateral Development Banks and organizations (Inter American Development Bank, Organization of American States, and the World Bank).

    US Financing in Thousands of Dollars

    934-0033 Clean energy production and use DA
    Through September 30, 2000
    Obligations 10,108
    Expenditures 5,875
    Unliquidated 4,233
    Fiscal Year 2001
    Obligations 3,455
    Expenditures 3,866
    Through September 30, 2001
    Obligations 13,563
    Expenditures 9,741
    Unliquidated 3,822
    Prior Year Unobligated Funds
    Obligations 1,726
    Planned Fiscal Year 2002 NOA
    Obligations 4,200
    Total Planned Fiscal Year 2002
    Obligations 5,926
    Proposed Fiscal Year 2003 NOA
    Obligations 3,400
    Future Obligations 36,663
    Est. Total Cost 59,552
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    Last Updated on: May 29, 2002