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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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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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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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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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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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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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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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