RURAL ELECTRIFICATIO

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The Rural Electrification Project will support the development and implementation of an efficient rural electrification (RE) program. Specific objectives include : 1) construction of facilities to electrify 4,500 villages between 1990 - 1992; 2) improvement of RE subsector development planning; 3) reduction of the unit cost of electricity distribution in rural areas; 4) maximization of RE economic benefits by increasing in - village connections; 5) cost reductions by enhancing the role of village cooperatives; 6) strengthening PLN's and MOC's organizational units. The project will consist of two components : a) PLN - involving implementation of the RE investment program which includes construction of 33,00 kmc of MV and LV power lines, installation of 571,000 kVA transformer capacity and the connection of 1.3 million new consumers; b) MOC - development of an action plan to strengthen village cooperatives; institutional development of MOC which includes an organizational and management study; and training for relevant MOC staff.