Power and Communications Sectors Modernization and Rural Services Project (PROMEC)

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The Power and Communications Sectors Modernization and Rural Services Project aims at deepening reforms in the telecommunications, and electricity sectors, by strengthening regulatory institutions, and improving environmental management of the sectors' activities, fostering competition, and increasing private participation, promoting efficient use of energy, and providing new information and communication technologies (IT) to support services to micro, and small businesses. The components will: 1) strengthen the legal and regulatory frameworks in telecommunications, and electricity. Public consultations, and dissemination of regulatory decisions will be undertaken to supervise, and strengthen the Telecommunications Agency (SUPTEL), while software programs, and equipment will be financed, and a telecommunications tariff rebalancing plan prepared. Electricity regulations of the National Council of Electricity will be completed, including strengthening its institutional capacity, and monitoring criteria, and that of other sector institutions. Selected energy, and tariff studies will support these activities; 2) extend services to low income groups, and small businesses in peri-urban areas, by developing pilot projects, an electrification strategy (both grid-extension and off-grid), revising IT regulations, and, developing IT access in marginal urban, and rural areas; 3) design, and implement a program to promote the use, and conservation of electricity, to include tariff incentives, standards for efficient electrical appliances, public information, and, market assessment, and training to local energy service companies; and, 4) finance project management, consultation, and communications activities to provide support to implementing agencies, and the private sector.