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Ex-post Evaluation

Latin America and the Caribbean

I. Outline of the Project

  • Country:Argentina
  • Project title:Industrial Energy Conservation the Argentine Republic
  • Issue/Sector:Technical spread / Person rearing
  • Cooperation scheme: Project Type Technical Cooperation
  • Division in charge: Mining and Industrial Development Cooperation Department Second Technical Cooperation Division
  • Total cost:1.19 billion Yen
  • Period of Cooperation 1995.7.1 ~ 2000.6.30
  • Partner Country's Implementing Organization:National Institute of Industrial Technology
  • Supporting Organization in Japan: Ministry of Economy, Trade and Industry,
    Agency for Natural Resources and Energy
    The Energy Conservation Center (ECC)
  • Related Cooperation: Inter-American Development Bank

1 Background of the Project:

During the 80's it was identified nationwide the need to establish proper procedures for the rational use of energy in the industrial sector, thus INTI's Energy Department1 started conducting studies about the situation of the energy consumption in that specific area. The results depicted that there were several problems from the perspective of the energy conservation, the diagnosis techniques and the equipments, among other respects.
In this scenario, the government of Argentina requested in 1982 to conduct a development study regarding the possibility to establish specific techniques for energy conservation. Based on this request, JICA conducted a development study from December 1987 to January 1989.
Later on, in July 1991, and based on the recommendations of the development study's report, the government of Argentina requested for technical cooperation in the form of a "project" which was shaped as the "Industrial Energy Conservation Project" developed between 1996 and the year 2000. It is important to highlight that in 1997 the INTI's Energy Department became the current CIPURE.

2 Project Overview

According to the request, the Project's aim was to meet the following expectations:

  • To transfer the required technology to CIPURE so to reach a leadership position and to promote RUE's activities as well.
  • To provide Technical Training Courses and the required infrastructure to train energy managers in the industrial sector.
  • To perform energy audits and consultancy services in industries in order to train the staff of CIPURE.
(1)Overall Goal

To promote the development of the energy conservation in Argentina.

(2)Project Purpose

To increase the ability of CIPURE (2) in guiding and promoting the energy conservation in the industrial sector.

(3)Outputs
  • To count with an institution (CIPURE) that guides and promotes RUE (3) as well.
  • CIPURE trains energy managers of industrial sectors.
  • CIPURE promotes the awareness and the knowledge related to RUE in the industrial sector.
(4)Inputs
Japanese side:
Long-term Expert 4 Equipment 483,458,000Yen
Short-term Expert 23 Local cost 33,494,000Yen
Trainees received 17 OthersYen
Argentine side:
Counterpart 19
EquipmentDiagnostic and Measurement equipment
Land and facility offer New establishment of laboratory and study room
Total aprox. 2,380,000 US$ local currency (280,000,000Yen)
1INTI = National Institute of Industrial Technology
2CIPURE : Rational Use of Energy Research Center
3Rational Use of Energy or Energy Conservation

II. Evaluation team

Member of Evaluation Team
Ing. Alfredo Rapallini
Dr. Jaime A Moragues
Period of Evaluation
8/01/04 – 27/02/04
Type of Evaluation:
Ex-post

III. Results of Evaluation

3-1 Summary of Evaluation Results

(1)Impact

Since the Project's final evaluation, and due to the critical changes in the political and economical context the promotional activities of URE held up and were less the motivations in the industrial sector to prepare themselves and to implement actions regarding energy conservation.
We consider that since year 2003 positive signs took place (proposal of URE's law approved by the Senate, the reactivations of URE's Program in the Energy Secretariat.
It is worthy to pay attention in a fact overlooked by the Joint Evaluation Report of April 2000, regarding that in the 1996-2000 period the political and economical scenario (specially the reduction of the prices of energy products) did not help the companies to find a motivation to face URE's programs, being this an obstacle for many companies to conduct the studies that CIPURE's studies proposed them. In addition, also had a negative influence on launching URE's programs the 1 to 1 rate of exchange between the peso and the dollar because it made cheaper to import goods, spare parts, etc, than produce them in the country. This led, in many cases, to the bankrupt of many small and middle sized companies and in other cases just to focus their efforts in surviving, devoting all their activities specifically to the financial and economical issues. All of this meant that many of the industries contacted during the Project lifetime put off the achievement of the investments related to URE until they could find a way to get over the economical crisis.
The changes in the economical and political situation in the country led to unexpected negative effects for the Project development.
The crisis that started in 2001 made the industries unable to place their efforts on URE's subjects, but only in those that meant to help overcoming the country situation, and therefore the topic was in a background level then, even in those industries which had started to put in practice CIPURE's recommendations.
The uncertain situation regarding the relative prices of the energy products in the middle term, that took place en the post-project time and which is still in the solving process, does not help the implementation of URE's programs which would lead to major investments or changes of processes and equipments. For instance, the rise of the prices of liquid fuels comparing to the natural gas and electricity meant that in many cases it was more convenient to use electricity rather than GLP for caloric use.
Anyway, some companies that are part of international holding must follow specific rules about energy consumption established by comparison with other foreign subsidiaries and they have to improve their energy efficiency regardless the prices of the energy products used.

(2)Sustainability

INTI, through CIPURE, had kept a reasonable activity in the implementation of the services that went through 2001 to 2003 with a similar amount of these than in the previous period (1997-2000), even when it did not reach the maximum work ability, which shows a reasonable sustainability of the Project, yet in an economical and political context adverse for URE's activities.
In regards of the courses the Boiler's Operator course was given regularly but since 2001 the one about Industrial Energy Management was not longer offered due to lack of applicants.
In the years 2002 and 2003 a series of seminars were conducted about efficient use of energy in dairy industries that gathered at regional level industries and companies who were interested in the subject.
Likewise, on a regular basis were performed the tasks of Pilot Plant equipment maintenance, strictly following the provided instruction manuals.

Regarding the first expected result:

- To count with an institution that guides and promotes URE.

CIPURE maintain its level of excellence in its services, endorsed by the constant requests from the industrial sector to provide services that had occurred in the post-project years.
Regarding the second expected result

- CIPURE trains energy managers in the industrial sector.

The fact that it was not able to continue with the Industrial Energy Management courses reduced the chances of training personnel in that sector, which on the other side it is considered the potentially higher way to foster the implementation of URE's measures. To perform this task through CIPURE's services will only came up with great restrictions since the CIPURE's staff and equipment just allows it to supply from 60 to 70 services per year.
Regarding the third expected result
In the industrial sector CIPURE promotes the awareness and the knowledge related to URE.
The same points of the previous case apply here.
To sum up, we consider that CIPURE has maintained in a limited but reasonable way, within the frame of critical changes that happened in the country, the Outputs of the Project since the Project's conclusion. The received modern equipment and the new facilities, plus the introduction of a series of organizational and communication features with the industries have improved CIPURE's general ability to assist the industries. Of the latter, it is worth to mention:
The Industrial Energy Management course contents outline and the draw-up of a series of instruction manuals for participants.

  • The offer of pre-diagnosis analysis (normally free of charge) with the object to let clients consider the conduction of deeper studies.
  • The creation of control lists for energy pre-diagnosis that allowed to enlarge the number of crew members that can perform these tasks.
  • To establish written procedures of equipment operation.
  • Automatic data acquisition, a subject on which CIPURE has continued working by locally developing a system based in personal computers.

3-2 Factors promoting sustainability and impact

(1)Factors concerning to Planning

It is considered that a successful transfer of information and knowledge on energy efficiency subjects took place. Companies in which the services were rendered had highlighted their excellence level and the requests for CIPURE's services continue in the present.
It is considered by CIPURE staff a very important matter to coordinate regional courses. For this reason it was thought to suggest the drawing up of a project, with the participation of JICA's offices in the other countries of the area, with the object to be able to run, on a permanent basis, training courses for the professionals in the field of energy conservation, using as a focal point the Pilot Plant and the courses infrastructure of CIPURE in Argentina.

(2)Factors concerning to the Implementation Process

In the new economical context, more favorable for the exports and more competitive in terms of prices, but with expectation of rises in energy internal prices, it is very likely that URE might play an important role to help keeping competitiveness in the foreign trades.
During the Project period services were offered to large companies and PYME. Now the offering is directed particularly to the PYME which have less abilities to carry on these programs and CIPURE is doing it with the help of the other Centers of INTI, which at the same time offer their services in their specific areas. Presently CIPURE is working as a team with the Food Area. They have already collaborated with the Dairy Products and Milk Center (CITIL) and the Meat Center (CITECA), and they are drawing up projects with the Industrial Processes and Materials Area, and the INTI Centers: CICELPA (paper and cellulose) and CITEMA (wood).

3-3 Factors inhibiting sustainability and impact

(1)Factors concerning to Planning

CIPURE staff considers that the services that could provide, from 60 to 70 per year, is not the best way to widespread URE's program. It considers that the Training Center, through their courses, is the most suitable way to promote the program. However, the Energy Management course did not continue since the year 2001 due to lack of applicants, this situation was undoubtedly caused by the social and economical context of the country. To guarantee a steady transfer of URE's techniques it is necessary to find means to help applicants to cover course fee and participation expenses, particularly those participants coming from small companies.

(2)Factors concerning to the Implementation Process

It is worth to mention that in the post-Project period CIPURE used from 50 to 72% of their maximum capacity to provide services, thus a larger increase would not be possible due to restrictions in personnel and equipment availability.

3-4 Conclusion

We consider that as a consequence of the development of the Project, CIPURE has acquired and maintained a level of excellence in rendering services and promoting URE's technologies, abilities that has kept and efficiently used in the post-Project period that was evaluated.
We consider that CIPURE has maintained in a limited but reasonable way, within the frame of critical changes that took place in the country, the outputs of the Project since its conclusion. It has improved its general ability to assist the industries having modern equipment and facilities, as well as the establishment of a series of organizational and communicational features with industries.
The changes in the economical and political context had been a negative element not only in the implementations of the URE's measures in the industries (suggested in reports of CIPURE's provided services) but also in the increase of the requests of new services.
The current ability (regarding staff and equipment) of CIPURE is a limiting element in the number of services that it could provide annually, even though it did not reach its limits (due to the before mentioned situation) up to the present.
The main URE's promotional potential tool with which CIPURE counts on are the training courses, but the costs of them for PYMEs is a restricting element as well.
The non-existent explicit legal frame for promoting URE at a national level, and hence an implementation authority, results in the fact that there are no roles and responsibilities properly assigned. This situation makes, in the particular case of CIPURE, that its activities do not to have the explicit recognition from the authorities in the energy sector as organization that promotes and disseminates the rational use of energy.
The enactment of the proposed URE's Law is expected to have the effect of consolidating CIPURE as a reference point in such matter.

3-5 Recommendations

  • To find the means to enlarge CIPURE's professional staff and technicians, as well as the equipment, in view of the possibility of a growing demand for services as we can expect from the several signs of economical reactivation observed in the recent time and when URE's law finally gets enacted.
  • To conduct an "After Care" mission so to consolidate CIPURE in the new structure of INTI, and to repair, complete and/or upgrade the equipment provided by the cooperation Project.

The interviews held with CIPURE's crew and the visit paid to their facilities (a big opportunity to see in full detail the entire equipment available in the Pilot Plant and the one used to render services) led us to consider that it would be necessary:

1.- To complement the professionals and technicians training

- Data acquisition, monitoring and long distance data transmission systems.

2.- To upgrade the equipment needed to provide services

- This need could be separated in two big groups: to repair the existing equipment and to provide/supply with new equipment/machinery.

a) Damaged equipment or out of order with little chances to be repaired locally or with restrictions in the acquisition of imported spare parts.

  • Yew 2531A, for electric measurement has its electronic board burnt.
  • Hybrid 3087 – Has its electronic circuit burnt.
  • Sensor of Kanomax hot wire anemometer damaged.
  • Two Fuji flow meters have problems with their internal batteries and printers and analog outputs.
  • Sony Digital Camera is not working.
  • The telescopic probe of the particulate matter measuring device for stacks is damaged.
  • ABB differential pressure measuring equipment is not working.
  • Motorola radio is not working.
  • Omega humidity measuring equipment is not working.
  • pH measuring equipment is not working.
  • Pt100 of pilot plant and condesate flow measuring equipment need to be replaced.

b) New equipment and instrumental/tools to be acquired. Accessories.

  • Wireless Data logger.
  • Compensate cable for thermocouples.
  • Male and female connecting features for thermocouples.
  • To find the way to reduce/cut the courses cost for the PYME sector as a way to foster URE's promotion in the industrial sector.
  • To propose a project to train professionals in energy efficiency in Latin America with the participation of JICA's offices in the area and technical institutions in charge of URE in each country, taking as a focal point the infrastructure and experience of CIPURE's staff developed during the cooperation Project.

3-6 Lessons Learned

  • It is of a great importance to organize informative seminars to promote URE at a regional level and by industrial sub-sectors, taking use of the ability of entities that group the companies at a regional level. An example of this are the seminars conducted for Dairy sector in the province of Buenos Aires, together with GTZ and the Energy Directorate of Buenos Aires Province.
  • This experience has proved the importance of working together with all the other sectors that bring technical support to the specific industrial processes (INTI with the other Centers, in particular) aiming to introduce URE in the specific productive context and with an integrationist attitude towards both aspects.
  • The non-existence of a nationwide URE's policy makes us to consider that unless the energy consumption represents a significant input in productive process, there is no concern/intention from the industrial sector to introduce URE. That's why is so important the enactment of a law regarding URE in Argentina.

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