Programme for the optimal use of energy resources in Latin America, 1995-1997

The ALURE programme was established by a Commission Decision following a proposal submitted to the PVD-ALA Committee. The general objective of ALURE is to contribute to economic growth, social development and environmental protection in Latin America through modernization and the effective and efficient development of their energy systems.

ALURE covers all energy system operators (public, mixed-ownership and privately owned) in Latin America. Its specific objective is to back up the process of political and institutional reorganization and modernization of the energy producing, distributing and consuming sectors so that appropriate services - quantitatively and qualitatively - are provided on optimum terms of economic efficiency, social development and environmental acceptability. This is to be achieved by focusing on the following activities:

- Adjusting national energy policies to the new economic, social and environmental challenges; revision (or introduction for the first time) of laws and regulations;
- Releasing the respective roles of the State and energy sector operators, and relations between them, in order to establish institutional frameworks which meet the needs of the energy system and, as far as necessary, facilitate participation by the private sector;
- Improving energy operators' internal and external performance standards in technical, economic and financial terms (especially in the natural gas and electricity industries);
- Galvanizing policies for efficiency in energy use and the design of programmes to that end;
- Contributing to the internationalization of environmental and other external factors in the energy decision-making process.

The programme complements other energy cooperation activities conducted by the Commission, in particular the SYNERGY programme (international cooperation programme with non-member countries in the energy sector) and activities conducted under the THERMIE energy demonstration programme.

To adapt energy policies in the region to meet new economic, social and environmental challenges; to reshape institutional frameworks and relationships between the authorities and the private sector; to improve the internal and external performance of energy operators, particularly the electricity and natural gas companies; to promote more efficient energy consumption; and to ensure that externalities are integrated into the decision-making process.

No details are available for this section.

The Commission is responsible for the implementation of the ALURE programme, assisted by an advisory committee composed of six experts (three from different Member States of the European Union and three from different countries in Latin America). A "Support Cell", which is to be selected following a restricted tendering procedure, will provide the Commission with administrative, technical and logistical support.

ALURE provides support, on a grant basis, for projects established by groups of energy operators from three EU Member States and at least one Latin American entity. (The Latin American entity is responsible for obtaining the approval of its national authority for the consortium's proposal.) In Europe, competent energy entities, in the context of the programme, could include energy and/or environment agencies, electricity or gas companies and specialist financial institutions. Examples of eligible entities from Latin American countries include specialist regional bodies, national energy ministries or authorities, gas or electricity companies or consortia, regulatory or privatization bodies and financial institutions.

Two types of projects are supported under the programme:

- Normal shared-cost cooperation projects which incorporate various coherent measures for obtaining the objectives of the programme. Such projects would generally run over a 12-18 month period with the financial contribution of the Community not exceeding 50% of the total project budget;

- Special projects comprising key strategic studies, for example focused studies, consultancy and decision-making assistance. For such projects, the Community's financial contribution will be assessed on a case-by-case basis.

Projects are selected following a call for proposals published in the Official Journal of the European Communities and sent direct to representative organizations and to energy system operators. Following the selection of a project, a contract is drawn up with the consortium.

The following activities may be combined with a project providing that they are strictly used to obtain its objectives:

- Direct involvement (short- or long-term) by highly specialized and experienced professionals in such fields as: the adjustment and design of energy policies; the remodelling of institutions involved in the energy system; the redefining of contractual relations between the State, public energy operators ("service contracts") and others of mixed ownership; the promotion of innovative financial instruments; regulation of the energy system; the planning of energy efficiency policies; internal reorganization of publicly owned energy operators; and the design of appropriate strategies and methods;
- Visits by senior local leaders and short-period specialist training courses;
- Short personnel exchange postings for familiarization with modern management techniques;
- Specialist seminars and workshops on subjects relevant to the project;
- Supply of small-scale hardware;
- Exchange of experience in establishing regional energy markets (e.g. legal, technical and economic factors) and reflection on the subject of subregional energy integration processes and projects;
- Promotion of technology and equipment at the energy-environment interface (in conjunction with the Euro-Centres under the AL-INVEST programme).

The programme is scheduled to run for a five-year period although the first phase will only run for two years. The total cost of the first phase of the programme will be at least ECU 14 million, of which ECU 7 million is provided by the Commission and ECU 7 million by the partner institutions in Latin America.

The implementation of the programme will be monitored closely. An independent monitoring and evaluation study will be conducted upon completion of the projects selected during the first call for proposals and the selection of proposals arising from the second call. The results of this study will provide a basis for comparing the actual results with the objectives and results originally envisaged, and will be submitted with the financing proposal for Phase II of the programme during the course of 1996.