In 2008, the Government of El Salvador obtained $33 Million from the Millennium Challenge Corporation of the US to carry out a program of rural electrification aimed at constructing 1500km of electric lines, and extending service to approximately 20,000 new rural consumers. FOMILENIO contracted NRECA International to examine the financial aspects of the project, and to review and recommend adjustments to procurement and contracting processes.  The objective of NRECA International’s participation was to ensure compliance with MCC requirements as well as to reduce costs and increase the number of beneficiaries to the greatest extent possible.

Prior to NRECA International involvement design, procurement and construction were carried out on a turnkey basis by local contractors who purchased small quantities of material in the local market. NRECA International developed a modified procurement process that separated procurement from design and construction, and consolidated material requirements into larger packages approximating annual material requirements for the entire project. Material packages were then procured in bulk under international competitive solicitations and supplied to a central warehouse. NRECA International provided support in management of the warehouse to ensure proper controls and efficient issue and return processes.