vyent diana g., public-community partnership in energy supply, 11-2011

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F.H.R. Lim A Po Institute for Social Studies Institute of Social Studies

MPA 111

Thesis Master of Public Administration Program in

Governance 2009-2010

Public- Community

Partnership in energy supply

Advantages of village electricity

supply in the Interior of Suriname

By:

Vyent Diana G.

Supervisor: Nicolas Awortwi

Date : november 2011

This paper was submitted in fulfillment of the requirement for the Master of Public

Administration (MPA) in Governance degree at FHR Institute of Social Studies.


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Public- Community Partnership

2

Disclaimer and information

This Masters Thesis completes the Master of Public

Administration in Governance 2008- 2010 (MPA Intake 111).

The F.H.R. Lim A Po for Social Studies organizes the

program in cooperation with the Institute of Social Studies

(ISS) in Erasmus University Rotterdam, the Netherlands.

In this thesis the information describes the public-

community partnership in the interior of Suriname within

service delivery. Community participation can have varying

levels of involvement of the community in the interior or

somewhere else, but it can range from several aspects like

labour, behavior, involvement in administration, and most

important, management and decision- making. Virtually, this

form of participation involves joint decision- makingrather than principal-agent relationships. Parties are

early involved in developing joint outputs rather than the

government. All parties together with the government

defining both problem and solution for service delivery.


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Acknowledgments

This research marks the end of a well received learning

experience, which made possible by the F.H.R Lim A Po

Institute of Social Studies and the Ministry of Planning

and Development Cooperation in Suriname, now the Ministry

of Finance. It was a fulfilling journey which contributed

to my growth on a professional and on a personal level. For

making my participation in this Master Programme possible I

am thankful to the Ministry of Natural Resources.

I would like to thank everyone who contributed in one way

or the other way to complete my thesis. However, I give a

special thank to

- the Almighty Lord, who gave me the strength, courageand perseverance to go forward;

- Mr. Hans Lim A Po, director of F.H.R Lim A PoInstitute of Social Studies, for his patience;

- my supervisor, Dr. Nicolas Awortwi, who guided me and- my mother, family, friends and colleagues who never

stopped supporting and encouraging me in the past two

years.

Bless you all!

Sincerely Yours,

Drs. Vyent Diana G.

Paramaribo, Suriname

2011


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Table of Contents

List of acronyms 6

1.Introduction1.1 Background 81.2 Problem Statement 101.3 Research Objectives 111.4 Research Questions 111.5 Research Methodology 111.6 Organizations of the thesis 12

2.Literature review on community management of servicedelivery

2.1 Introduction 142.2 Collective action 142.3 Factors promoting collective action 15

2.3.1Community organization 152.3.2Community participation 162.3.3Community management 17

2.4 Public Community Participation 192.4.1Definition and explanation of PCP 192.4.2Organization and management of PCP 202.4.3

Factors promoting PCP 21

2.4.4Advantages of PCP 212.5 Synthesis of community management of electricity

supply 22

3.Rural electrification3.1 Introduction 253.2 Profile of the villages 253.3 Review of rural electricity policy 263.4 Implementation of rural electricity 28

3.4.1Source of rural electrification 293.4.2Management of rural electrification 293.4.3Operational arrangements of rural

electrification 30

3.4.4Maintenance of generators 323.5 Conclusions 33


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4.Community involvement4.1 Introduction 354.2 Community participation in the villages/ villageelectricity 354.3 Strengths and weaknesses of community

participation 36

4.3.1Strengths of community participation 364.3.2Weaknesses of community participation 37

4.4 Potentials for PCP in electricity supply 384.5 Conclusions 41

5.Conclusions and recommendations5.1 Conclusions 435.2 Recommendations 46

Reference list 48

Appendix: Concessieverordening


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List of acronyms

BFZ Begroting en Financile Zaken

CDFS Community Development Fund Suriname

CO Community Organization

DEV Dienst Energie Voorziening

EBS National Electricity Company

FOB Fund for the Development of the Interior (SFOB)

MDG MillenniumDevelopment Goal

MOP MultiAnnual Development Plan

NGO Non Governmental Organization

PCP Public Community Partnership


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Chapter 1

Introduction


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Performing small social electrification projects incooperation with Community Development Fund Suriname

(CDFS) in rural and coastal areas (MOP, 2006- 2011).

The Surinamese government is aware that energy is an

important tool for socio-economic development like is

mentioned above and therefore wants to supply good quality,

safe, adequate and affordable energy for everyone,

including the interior communities. Options for renewable

energy are taken into consideration.

The Ministry of Natural Resources is responsible for the

energy services in Suriname. The EBS (National Electricity

Company) is responsible for the urban areas in the coastal

zone. This company falls directly under the department.

The coastal zone and the interior fall directly under the

department DEV of the Ministry of Natural resources.

There is no tariff regime in place and the supply to the

communities comes free of charge. Providing the villages of

electricity it is very costly. Overall, the villages are

not connected to an electricity grid and it is the

government that took the responsibility decennia ago to

supply the villages with generators and diesel as fuel. The

main reasons why it is insufficient are:

The villages are in remote areas, Energy is distributed through a diesel generator

within a time span. Nevertheless, the supply of power

is limited to about 5 to 6 hours per day. Maintenance


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of the diesel generators has become unfeasible and

difficult.

This system is very costly and technically notfeasible.

In Suriname the energy supply services are funded by the

government. In theory, these services (national utilities)

can also be managed by communities but community management

can also be ineffective, if they, the community, are doing

it alone. Within this, the potential for improving energy

supply services through more formal forms of partnerships

is very necessary. It becomes central how communities

especially in the interior can manage their own energy

supply services with the help of the government, NGOs and/

or COs.

1.2 Problem statementThat in the interior of Suriname, not many villages

are connected to some sort of electricity grid, were in

most cases the electricity is generated by a diesel-

generator. The government, within the policy of rural

electrification, supplies generators to villages as well as

fuel. Maintenance of these generators and grid however are

not well organized in many villages, resulting in overdue

maintenance and some cases discontinuity of the electricity

supply, simply because of fuel shortages and basic repairs

to generators e.g. the replacement of parts.


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1.3 Research objective

The objective of this research is to analyze and to

determine whether Public- Community Partnership of rural

electrification will deliver effective and efficient rural

electricity supply in the interior of Suriname.

1.4 Research questions

The research questions of this research are:

1. How are community electricity promoted and managed?2.Are they (promotion and management) conducted

effectively and efficiently?

3. What are the operational challenges and how can theybe improved?

1.5 Research methodology

To describe the development of energy services in the

interior a study will be conducted. This is necessary to

construct a theoretical framework, to understand the

different concepts and motives behinds the establishment of

energy services. To complete the information, I will do

interviews with members of the villages (the traditional

leaders and village elders), different households,

representatives of community organization and project


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coordinators and collecting data from different

institutions, such as the EBS and the Department for Rural

Energy of the Ministry of Natural Resources (DEV), private

officials in the energy sector and board of directors of

the Fund for the Development of the Interior (FOB). Based

on the findings of the research and the history of energy

supply in the interior, the applicability of Public Private

Partnership principles for the energy services will be

presented, especially the Community Partnership aspect.

1.6 Organization of the thesis

Chapter 2 describes the different concepts and

characteristics of community management and collective

action. Chapter 3 presents the rural electrification of the

interior. The focus on community involvement is developed

in chapter4. Chapter 5 rounds off with the findings and

conclusions.


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Chapter 2

Literature review on community management of

service delivery


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2.1IntroductionIn the following chapter the aspects on community

management will be discuss the decision which help to

decide whether collective action is an appropriate solution

for particular situation. It also describes the key

concepts and characteristics of collective action and the

promoting factors of collective action. Also the aspect on

Public Community Participation will be explained.

2.2 Collective actionThe term Collective action has different meanings or

definitions. Collective action can be defined as voluntary

action taken by a group to achieve common interest. Members

can act directly on their own or through an organization

(Ruth S. Meinzen- Dick, Monica Di Gregorio). In short the

efforts of a group to reach and implement decisions.

Taking another definition, collective action is as all

activity involving two or more individuals contributing to

a collective effort on the basis of mutual interest and the

possibility of benefits from coordinated action (Marwell

and Oliver, 1993). Melucci (1996) defined Collective

action as a set of social practices (i) involving

simultaneously a number of individuals and groups, (ii)

exhibiting similar morphological characteristics in

contiguity of time and space, (iii) implying a social field

of relationships and (iv) the capacity of the people

involved of making sense of what they are doing. (Melucci,


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1996,p.20). Emphasis on the factors that promotes

collective action is done in the following.

2.3 Factors promoting Collective actionThere are factors which promote Collective action. In

the following subparagraphs the emphasis will be on three

main factors, namely community organization, community

participation and community management.

2.3.1 Community organizationThe first factor promoting Collective action is

community organization. This factor is virtually the

organization of the community; but in theory it depends on

more on that. In all these three the community is central.

So, the term community can be defined as a system of

bringing people together. In practice, community is a group

of users of a service who live in the same area and have

access to, use the same service.

To organize a community peoples are needed this because

with the organization the objective is to support them to

participate in different process and kind/sort of

participations projects. Hereby, important components are

needed. These components are as follows:

The preparation of the activity The development of leadership Mobilization of the community organization in the

activity

Evaluation and monitoring


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In the preparation phase, the identification of the groups

and leaders; the conditions of the village have to be

analyzed but also the vision and the mission of the

organization has to be determine.

The development of the leadership. A leader is a sort of a

role model in a village and is popular by the community. He

also had certain characteristics. Is consulted during

different phases of a project and has a facilitating role.

Such person is the highest authority in a village and is

able to make decisions. When there are problems, concerns

or complains regarding the services the community can ask

him to mediate and try to find a solution.

In the mobilization part, support of the community is

important. Within this, meetings have to organize to

discuss the vision and the mission of the organization. And

the sustainability of organization had to ensure by

focusing on the membership and finance resource.

Evaluating and monitoring is needed to measure the success

and/ or failure of the organization, in achieving its goals

and objectivities.

2.3.2 Community participationIn fact, participation is needed every time to achieve

a certain goal, whereby the involvement of the local

community in a certain village is very important and

crucial. This can deliver a specific contribution to the

whole. It can be in cash and any other relevant

contribution, which can provide effectiveness, efficiency


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and empowerment. In general, the contribution of the

community can be manpower, materials, transportation and

assisting in projects with the upgrading of activities. A

simple definition of community participation is the

reference to the involvement of the people in a community

in development projects (UNCHS, 1991; Sheng, 1992; Korten,

1987; Garilao, 1987). The involvement can help communities

to solve their own problems. Management is mostly a

principle aspect in the participation. In the following

paragraph community management will be explored. Typically

within community partnerships the features and merits of

both public and private sectors are the essence. The

strength in the public is the responsibilities and the

accountabilities, but in the private more competitiveness,

in some instances, more efficiency. This form of

partnership (community partnership) does not involve the

principal-agent principal but joint decision- making. And

well in an early stage in developing joints outputs and

arrangements in service delivery (Aulich, 2002).

2.3.3 Community management

Like is already mentioned in the previous paragraphs

is that management a principle aspect in the participation

of the community. This is important for the involvement in

decision- making. Community management is defined as a

situation, in which a community takes the responsibility

for, and gets authority over and carries out control on

operations, management and maintenance of service

benefitting its members (Justine Anschutz, 1996). Thus, key

persons are taking the responsibilities on their shoulders


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so that they (the local community) can feel that they are

and also responsible for sustaining and improving the

service delivery supply. The people or actors, who play a

very crucial role in management aspects, looking at the

community as a whole, are the community members and local

leaders of the community in a certain village. The roles of

these persons are very different and linked with the

participation. With regards to the community members and

leaders, there are rules which adapt daily habits in every

system, like rules, schedules etc.

But within all this it is worthy to ask whether community

management is successful. Successful community management

in energy supply systems is when the provision consists of

fully sustainable service that provides an equitable energy

supply to the community. Meaning that once a community has

been provided with a certain level of service it must never

have to run-down to a structurally lower level of energy.

The key factors to make community management in place are:

1.An enabling environment-Policy environment

-Effective legislation

-Support systems

2.Management capacities of the community3.Appropriate service level of technology4.Finances: capital and recurrent

These above mentioned key factors are linked with each

other. In the last paragraph (2.5) the diagram illustrates

its complexity and the efforts which show that all factors

will lead to a sustainable management of the system.


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2.4 Public Community ParticipationTo sustain community management is participation an

important part. Participation requires sharing the

different responsibilities between the local community,

organizations if there is any, leaders and the public and/

or the private sector. It has the different levels in the

tasks and responsibilities between the actors. These allow

the different actors or their representatives to take an

agreement on what they will decide and also the

responsibilities. Within this decision- making by community

members is important. Participation can have several parts.

In the paragraph below, Public community partnership is

explained and defined.

2.4.1 Why Public Community PartnershipWhy? Because community partnership is basically involve

joint decision making of partners together. Whereby, mutual

actions are taken to bring any kind of solution in

different kind of problems in service delivery (Hodge

2002:4; Langford 2002: 69). Further more, the relationships

which are in the interest of community development through

working together to achieve mutual goals and with joint

decision making and sharing of risk and goals (Boase,

2000). Important in projects like service delivery, the

essential criteria why partnership, are as follows:

Services can be provided more cheaply There is an intrinsic value in participation More will be accomplished


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There is a guarantee that a felt need is involved Ensure that things are done the right way A sense of responsibility is encouraged People are more conscious of the causes of their

poverty and what they can do about it (Naraya, 1996)

2.4.2 Organizing Partnership

Like mentioned in paragraph 2.3.1 what community

participation is, the organizing itself is different. The

management and organization becomes central. When a

community is mobilized, partnership is essential in

development of it. The structures and processes are very

important factors in the organizational part. But before

all of that, goals and objectives must be in place.

Different roles and responsibilities of peoples and groupsshould be clearly defined.

2.4.3 Factors promoting Public Community ParticipationThere are factors that promote Public Community

partnership. These factors are:

Constantly feedback with partners involved Trust and confidence Very clear defined rights, responsibilities and

obligations

Coherence with the local government programme Modalities of every goal


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Participation of partners (community etc.) and indecision-making

Time span for achieving goals

2.4.4 Advantages of Public Community Participation

Partnerships overall has advantages and disadvantages. In

this paragraph only the advantages are listed. In principle

partnership is a strategy for promoting and delivering the

public needs. The advantages are:

Come together (bring people together) and work onjoint projects

Bring improvement/ change the way communities work Increasing competition Bring innovations at administrative and technical

levels

Contribute to interest in collaboration Sharing of decision making, responsibilities and

resources

Transformation in government function, for example:from provider to supervisor

On-time completed projects

Improve efficiency of the joint projects (saving cost,sharing risks, more efficiency in project

implementation etc.)

Improvement of service quality and public socialwelfare/ acceptance


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2.5 Synthesis of Community managementIn order to get a synthesis (an analytical framework),

it is necessary to put community management and public

community participation on the one side and on the other

side the results or outcome. In the diagram below it is

illustrated how its complexity and the efforts of all

factors lead to a sustainable management of the system.


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Diagram 1: Synthesis of Community Management


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Chapter 3

Rural electrification


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3.1 IntroductionIn this chapter the rural electrification will be

discuss. A short look at the villages, the policy

environment, the way the villages get electricity and the

agencies that are involved or responsible. Thus the

policies and regulations regarding energy supply services

in general and in practice the provision for the interior

will be analyzed.

3.2 Profile of the villagesFor the analysis the main focus will be on four

villages that have been selected at random, namely

Pokigron, Atjoni, Gen-Genston and Pambooko 1 and 2. A brief

sketch of these villages is given below.

All of these villages are located around the Surinameriver, East and South-East Suriname. The villages are

primarily populated by Marron communities who live in

tribal organization structures. Most of them live in tribal

societies.

Pokigron and Atjoni are situated on a distance of 183

kilometers from the capital of Suriname, Paramaribo. The

estimated population of these two villages is about 415

with a unit size of 120 Kw (of DEV).

The population of Gen-Genston is not available, but it has

a unit size of 61 Kw(of DEV). Village Pambooko has a

population of 165 and a unit size of 55 Kw(of DEV).


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In all these villages except Gen-Genston, are public

schools (primary school), church and medical centers. In

Pokigron and Atjoni there are more activities like a

little service station, Chinese shops or stores,

bakeries, wood crafters and other different jobs.

Every village has a rural council. This council consists of

a leader (captain) and four basjas (two women and two

men).

3.3 Review of the Rural electricity policyBefore looking at the rural electrification, the

Suriname power sector will be analyzed. The Suriname power

sector consists of a number of individual power systems and

mostly interconnected with each other.

An analysis of the main energy regulations gives the owner

the following picture:

1.Article 41 of the Constitution states that the Stateis the owner of all natural resources including energy

2.Decree of 1991 no. 58, amended in 2002. in this Decreethe tasks of the ministry of Natural Resources are

contained and include the following:

Develop, coordinate, implement, monitor andevaluate the national policy for the sectors

mining, energy and water.

Prepare and amend the legislation regarding theuse of natural resources including energy.


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Ensures the provision of information to thevarious stakeholders, sector partners (national

and international) and civil society.

3.Concessieverordening of January 1, 1972 G.B. 1944No.129

The importance of this law for the energy supply is that

concession should be granted to use of domain for the

construction and operation of public utility works. The

concession is granted for a specific geographical area,

namely the whole Suriname and for a maximum of 50 years.

The Suriname Power Company (EBS) operations are based on

this law.

Looking now at the rural electrification, the Multi Annual

Development Plan (2006-2010) and Government Statement

Policy becomes central.

In the Multi Annual Development Plan (MOP) of Suriname is

stated that electricity is one of the important instruments

for planning of long term development and adapted by the

law. Focusing on the interior, the policy on rural

electrification concentrates on several aspects:

Energy is an important tool for sustainable socio-economic development

There is an increase of energy demand due to theincreasing life standards

Rehabilitation of diesel generating station ininterior villages by Dienst Energievoorziening (DEV)


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Performing small social electrification projects incooperation with partners in rural and coastal areas.

The Surinamese government is aware that energy is an

important tool for socio-economic development like is

mentioned above and therefore wants to supply good quality,

safe, adequate and affordable energy for everyone,

including the interior. With regard to the Government

Statement Policy, it is a policy implementation plan of the

Government presented to the Parliament yearly.

In context to the rural electrification, the primary

responsibility for the energy supply services in Suriname

falls under the Ministry of Natural Resources. The Suriname

Power Company (EBS) is responsible for the urban areas in

the coastal zone. This company falls directly under the

Ministry. The coastal zone and the interior fall directly

under the department DEV of the Ministry of Natural

Resources. The resources are limited, so the Ministry can

undertake the regulatory tasks effectively, for example the

tariff policy. Providing is done very costly, also because

of their (the people) low standard of living.

In total, 126 villages in the interior are installed by DEV

with diesel unit.

3.4 Implementation of rural electrification

Overall many villages are foreseen by the department of

Ministry, the DEV. They have not an adequate energy supply.

It is insufficient or no energy supply. The villages are

connected to an electricity grid and like is already


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mentioned the government took the responsibility decennia

ago to supply the villages with generators and diesel as

fuel. Why an insufficiency? Because:

o The villages are in remote areas.o Energy is distributed through a diesel generator

within a time span. Nevertheless, the supply of power

is limited to about 5 to 6 hours per day. Maintenance

of the diesel generators has become unfeasible and

difficult.

o Is very costly and technically not feasible. The fuelhas to be transported by means of truck, boat, and

some cases by small aircraft.

3.4.1 Source of rural electrificationIn the villages the availability of supply is very

limited. As is mentioned the power supply is for 5 to 6

hours per day and it is the ministry of Natural Resources

that takes the responsibility with the Suriname Power

Company. In each village the DEV has installed generation

units in over 129 villages in the interior. But even the

capacity is in place the availability of electric energy is

very limited. Just a number of hours per day. The so-called

recreation energy.

3.4.2 Management of rural electrificationThe management of the rural electrification lies in

the hands of the department DEV. Every generator of the

villages is controlled by the department. Transportation of

the diesel/ fuel (for the maintenance of the generators)


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from the beginning on until the destination is in the hands

of DEV. This, the delivery, is done by land, water and by

aircraft. In short, the management of the DEV regarding the

energy supply is to deliver fuel on regular basis for the

villages in the interior so that the energy services/

supplying are guaranteed.

The administrative part for the arrangements of such

delivery services is as follows: a request for fuel and

lubricants is arrange by the DEV and sent for the managing

director to approve the request. Then the financial section

called Begroting en Financiele Zaken (BFZ) takes this

request/ order in process and then it goes to the supplier.

And out of the supplier the delivery took place to the

several villages. The frequency of the delivery services

are once per month.

3.4.3 Operational arrangements of ruralelectrification

In the area of operational arrangements the

coordination seems to be limited between departments of the

two ministries, the ministry of Natural Resources, the DEV

and the ministry of Regional Development, the SFOB. The DEV

is the official department that belongs to the ministry of

Natural Resources. The responsibilities of this department

are to manage the transport and supply of diesel to

generators in the several villages in the interior. Another

responsibility is to perform maintenance and to provide

spare parts for these generators. All the 126 villages have

been provided with a diesel generator.


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The provision of the electricity supply to the villages is

a very costly affair. Every month about more than 150.000

liters of diesel are transported to the villages.

Transportation costs are almost half of the costs of fuel.

The people in the villages see the supply of electricity as

a very attractive manifestation for modernization. In many

countries, Suriname not except, politicians makes eagerly

abuse of this interpretation (mostly barely before the

election) by promising them diesel generators for nothing.

This sort of political obstacles makes the electricity

supply in the interior very difficult. For example:

Sometimes wrong orders of generators or other devices are

done which totally not are not in use and became rusty.

Also the aspect of fuel destined for the different

villages, partially reach the villages because of the so

called leakage of the barrels on the way.

The SFOB, Stichting Fonds Ontwikkeling Binnenland is a

semi- government foundation that resorts under the ministry

of Regional Development. This foundation helps to eliminate

socio- economic problems in the interior, in order to

strengthen the national economy. The SFOB consist of a

bureau and a board. The board has seven members divided in

four members of the government, one Amerindian, one Maroon

and one member of the NGO. Further has the bureau one

manager, a community development expert, three region-

coordinators a finance manager, a financial assistant and a

logistic assistant. The SFOB has done different

electrification and water projects in rural areas. All


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realized electrification projects are connected to the EBS

network.

3.4.4 Maintenance of generatorThe maintenance of the several generators and

distribution nets are in hands of department of the

ministry, the DEV. Also the delivery of fuel, several

lubricants and other devices. And all this is done under

the responsibility of the manager/ administrator and his

assistant. The activities are very limited. The manager

must make up monthly the periods with the consumption/ use

of the fuel, the services of the generators and trace

little malfunctions on the net. This department, if there

is an announcement, for example if the one of the generator

is broken, or some components or parts must be replaced

etc, is the only one who is responsible for and

coordinates. Not even the managers or assistants in the

villages can fix the problems; because they only received

the fuel if it is delivered (like is mentioned above) and

makes contacts (with the department in the city) if they

are in need. Technical personal from the city Paramaribo

has to travel to fix the different problems. Taking into

account, the given political- executive context is the DEV

in her existing/ current form unable to perform her

activities or duties in an adequate way.

At least, the managers and assistants have to trained or

instructed on-the-job, in short term. In the long term, is

qualified personal required, minimal technical personal


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that can work on generators et cetera. This asks for a

multi- disciplinarily approach.

3.5 Conclusion

In conclusion, although the government is aware that

energy is an important tool for sustainability socio-

economic development, the availability of supply is very

limited. The department can foresee many villages. An

adequate energy supply is missing. This all because that

the villages are in remote areas, unfeasibility and

difficulty of the maintenance and the very costly

transportation of the fuel. All this problems can be well

structured if the management, organization assessment and

maintenance of the rural electrification. So, the whole

management, organization assessment and maintenance of the

rural electrification are not well structured.


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Chapter 4

Community involvement


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4.1 IntroductionIt is not possible to manage services in the many

small villages without participation of the communities. In

this chapter the community involvement in the particular

villages is developed.

4.2 Community participation in rural electrificationThe involvement of the communities to manage services

is very important. Mainly to assure effective projects

execution, it is important to have a strong support from

the local communities. Involvement in the villages is

mostly the traditional authority; the Kapitein or the

Basja. This involvement can be classified as more than

social control with idea that the fellow workers or

collaborators of the ministry knows that the traditional

authorities kept an eye on them in the performance of their

activities. Looking at the four villages, the involvement

differs from village to village. Giving an assessment,

there is no or least involvement. Community development is

much more effective if the communities themselves are also

eager to develop. The existing energy generators installed

by the DEV, the conditions needs technical solutions for

setting up a more adequate energy system. For example; when

a filter or a little reparation (service) has to be done

on an installation, assistant from Paramaribo is needed.

This cost money, because the Ministry has to pay for the

transportation and so on (available materials).


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The men in the different villages give totality their

support especially when there is a need for identifying,

cutting and transporting wooden (electrification) masts/

posts. The representatives of the several organizations

worked also with the communities, thus the coordination is

not very good.

4.3 Strengths and weaknesses of Community participationWithin the Community participation there are some

strengths and weaknesses. Here under, the strengths and

weaknesses are listed.

4.3.1 Strengths of Community participationThe participation of the several communities in the

interior is varying (in range of working together,

performing and in different tasks). Besides

identification, preparation and implementation of

activities, the community has to be involved. This

stimulates participation and works further on the

improvement of togetherness. It underlines the importance

of an integral approach in these villages. In short, the

general contribution of the community is manpower,

materials, transportation and assisting the consultant (if

there is any) with the upgrading activities. The socio-

cultural aspects are the main one that plays an important

role. Most of the women are grouped in communal

organizations and -councils. Further, about a proper

participation according to the habitants there is no


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37

direct involvement. The selection according to the DEV to

work directly with the traditional authorities is done

deliberate because not everyone in the villages can be

charge with the fuel aspect and also to prevent

favoritism.

4.3.2 Weaknesses of Community participationIn contrast to the strengths the weaknesses shows the

problems or inefficiency of community participation.

Participation of the community in every development process

is very important. In this subparagraph the main weaknesses

are listed and leveled. There is,

- Low technical capacity: training require for the localcommunities in the villages (technical assistant).

- Low managerial capacity: mobilizing communities.- Low organizational coordination: the several

organizations in the villages are not working very

closely with each other.

- Willingness to pay: every household wants to get 24hours per day electricity, but they willingness to pay

is a crucial aspect.

- Low potentials for investors: it is unattractive forpotential investors because of the high initial costs

they have to make.

The selection according to the DEV to work directly with

the traditional authorities is done deliberate because

not everyone in the villages can be charge with the fuel

aspect and also to prevent favoritism.


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38

4.4 Potentials for Public Community ParticipationTaking into account the potentials in those villages

it is important to look at the serious steps which can be

very essential in the development process, if the

communities make use of them. The potentials the people

over there identified were natural resources, social-,

physical-, and human capital. All those activities need

electricity.

To make all this work very essential, there is a need to

look at different things. Some are the contract, the formal

organization, the community organization and management,

management set up and a new role for government. This all

can be place in a new design of an organizational

structure.

Regulatory Framework

To start, the regulatory framework has to be in place

first. Within this framework the regulatory authorities,

technical regulation and the tariff regulation plays a

crucial role. Currently there is no separate entity that

can play a central role in the Suriname power sector. This

absence seems to be primarily explained by political

unwillingness. As is already been told the primary

responsibility falls under the Ministry of Natural

Resources. The Ministry however has very limited resources

to effectively undertake the regulatory tasks. The power

sector has traditionally been considered a natural

monopoly. The presence of a monopolist, however, is

generally undesired for reasons of price, efficiency, and


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39quality. The definition of regulation can be when actions

are taken by the government in order to achieve socially

desirable outcomes in the power sector. That is, to arrive

at prices that reflect an efficient level costs, but also

is sufficiently high to make it economic for the utility to

operate. Connected to this is a sufficiently high level of

quality.

In fact the absence of the separate regulatory entity can

be seen as political reservedness. In order to allow the

regulatory functions to be carried out properly, most

governments have established a separate authority. If there

is a separate authority, advantages can be as follows:

The presence of an authority signals to the generalpublic and the power sector stakeholders the

importance that government attaches to the proper

management and development of the power sector. This

is particularly important for private investors who

are used to dealing with a regulatory body when it

comes to pricing and technical issues.

Unlinking the authority from day-to-day politicalinfluence takes into account the long-term nature of

the power sector. Investments in the power sector are

large and need to be earned back during a very long

period of time. The planning cycle is also long.

Increases in demand need to be anticipated long time

before they materialize as there is a considerable lag

between the procurement and actual installation of new

capacity.


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40 There is concentration of expertise and knowledge

within the authority which provides better

capabilities to deal with often complex technical

matters. This also provides a professional environment

that is better able to attract highly qualified staff

required for conducting the regulatory functions.

Separate regulatory authorities are common in practically

all countries in the world where some degree of power

sector reform has taken place. Generally, countries where

there exists a regulator, this tends to be correlated with

higher performance. Indeed, the idea of installing a formal

regulatory usually comes from the wish to improve the

efficiency in the power sector.

Technical regulation is currently not institutionalized in

the Suriname power sector. The absence of technical

regulation does not have substantial impact as the power

sector is still monopolistic. Most of the technical

regulatory is embedded within the EBS.

About the tariff regulation the objectives are set

electricity prices for the utility at a level such that

provided for efficient operations. The tariff regulation is

currently being carried out by the government. But the

problem in Suriname is that at present there is no accepted

tariff methodology. The absence of an effective regulatory

policy and implementation of this policy form serious

bottlenecks for attaining a secure and reliable power

supply in Suriname. There is no tariff policy in the

interior, due to the low demand it is difficult to achieve

any scale economies in generation.


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41Organizational assessment

In this area of organization, there seems to be limited

coordination between the Ministry of Natural Resources/ DEV

and the various actors. Some projects are carried out in

isolation and do not fall under the responsibility of a

single authority. Such coordination would help to implement

a uniform and coherent policy.

4.5 Conclusion

To manage services in the interior it is not possible,

not only with the government alone but also withthe

participation of the communities. Community involvement is

required to develop these services. Their support is very

important. Weaknesses of community participation show the

inefficiency of their participation in this chapter,

although there are much potential in those villages. But

all activities need adequate electricity.


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42Chapter 5

Findings (Conclusions) and recommendations


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435.1 Findings (Conclusions)How are community electricity promoted and managed?

Community electricity is not very well promoted and

managed. Although energy an important tool is for

sustainable socio- economic development and one of the

important tools for planning of long term development, the

policy on rural electrification is still very weak. The

government knows that there is an increase of energy demand

due the increasing life standards and also aware that

energy is an important tool, but the supply is inadequate

and not affordable for everyone. The promotion

(stimulation) and management lays in the hands of the

ministry of Natural Resources, in this the department DEV.

It is shown that the resources are limited and namely the

regulatory ineffective. Providing electricity is done very

costly, hence the people stay in low standard of living.

Are they (promotion and management) conducted

effectively and efficiently?

The promotion and the management are not very well

conducted effectively and efficiently. On the side of the

community, their ample space is very restricted because of

the supply of power is limited to about 5 to 6 hours per

day which is not economic profitable. The community did not

have the management capacities and knowledge to bring the

service system sustainable. On the other side, the ministry

of Natural Resources is unable to satisfy (not very


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44optimal) their, the community, demand in energy service

delivery. It seems like the ministry can manage these

services. The energy supply services can be promote and

managed nor by the community and the ministry effectively

and efficiently.

What are the operational challenges and how can they

be improved?

The present conditions of the remote villages are not

profitable to supply with diesel generators. It becomes

very unfeasible and too expensive owing the cost of fuel

transportation and to difficult to maintenance. In this

case clustering villages together and renewable energy

options can be taken into consideration. The implementation

of these options can be suited for individual households or

for the community. It is necessary to start a program for

education and the training of the people living in remote

areas on the use of such equipments.

Another operational challenge is the enabling environment.

An enabling environment includes policy environment,

effective legislation and support systems, has to be in

place. A new legal framework for Surinames energy sector

has to be developed consistent with international standards

in order to guarantee a better legal security to investors

and to sustain the sector development. Therefore, different

actions must be taken at different levels; namely, at the

law level, the regulatory level and the contractual level.


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45

Also a tariff study and action plan for a gradual increase

of tariffs must be set up. The tariff policy and tariff

increases are under the responsibility of the ministry of

Natural Resources. Classically, like in many development

countries and emerging economies, the politicization of

this type of decision prevents the public authority to

adjust the tariffs according to the cost evolution, and

causes important losses to the state-owned company in

charge of electricity distribution.

In Suriname there is no regulatory body in charge of the

operator control, tariff approval and sectorial regulation.

These tasks are taken care of by the State.

Restructuring of the NV EBS under a new concession contract

would be carried out, in parallel with the tariffs increase

and with the establishment of the new legal framework. The

new concession contract can be privatization.

Institutional and organizational reforms are needed.

The community is aware of the importance and advantages of

partnerships but the interrelationship has to be improved.

More supporting power and understanding for development and

economic activities are very weak. To realize the use

(advantage) of the development it can be in advance for the

communities.


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46

5.2 RecommendationsThe ministry must maintain and update a rural

electrification plan to co-ordinate rural the

electrification. This will encourage and support the

creation of a network of private enterprises that will be

capable of supplying, erecting, and providing and

maintenance advice, of installations that supply

electricity to rural population.

To develop such rural electrification the ministry should

authorize rural communities that are not serviced under a

Concession contract to build and operate electricity

generation and distribution installation for satisfying

their own electricity needs. Within this the community

shall have improved standards of living and work;

employment of labour; accelerated, co-ordinated and

sustained economic development and enhanced levels of

national competitiveness.

Another operational challenge is that there is no strike

(stoppage) on side of the supplier of the fuel and

lubricants. Years ago the suppliers often stops the

delivery because the government does not fulfill their

financial commitments on time. The government has to commit

an evaluation or an assessment regarding the financial-

system, especially the guarantee in continuity of the

energy supply in the interior.


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47

Regarding the leakage of the fuel and other lubricants, an

unit FuelInspectionthats engage in controlling the

fuel delivery, the status of the different generators, the

infrastructural of the department DEV in the interior, keep

an eye on the managers and assistants, report the executive

manager (chief), abolish malfunction on the spot which

needs a direct solution, and especially to communicate with

and held contacts with the traditional authorities in the

interior.


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48

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