31. It is assuned that foreign energy companies will be able to arranqe tbe reguired financing of $14 billion annually and that donestic energy enterprises will be able to mobilize $51 bilfion annually from the conventional sources of profit reinvestment, new loans and new eouity capital. This leaves an overall projected annual shortfall of $27 billion. 32/ This figure should, however, be used only as a crude indication of the magnitude of the financinq gap. Used inA/ 40 /sl-r EngI i sh Page 12 this sense, it sbohts that the magnitudes of additional financing which have been proposed so far seem far short of the estimated requirenent. B. Non-financial constraints 32. Aside fron the financial constraint, developing countries generally faceanother set of constraints which, in essence, reduee their capacity to formulate and implement energy plans and programnes. Energy planning and management are complex because the resource base is uncertain; the technology is often new,rapidly cbanging and risky to adopti investments are highly discontinuous andcostly, wit'h long Qestation periodsi energy denand is difficult to project; and environmental considerations need to be incorporated into the plans and proqrammes. 33/ There is a paucity of energy planners in developing countriesi the information base and flow are inadeguate, for example on geologic data, on neht developments in the planning, acguisition, processing and interpretation of resource data, on exploration and production technoLogyr on quality control measures, and on the terms and conditions of contracting arrangementsi and there is a problem of effective co-ordination of institutions whose plans and programmes arerelated to energy policy and decision-naking. Skill in energy planning is not theonly skill lacking. Also very scarce in many of these countries are hightytechnical skills, such as those needed in geology and geophysics, and other skills such as plant and production engineering and technical and financial managementrelated specifically to energy exploration and production.
**Analysis**
The text discusses the financial and non-financial constraints faced by developing countries in formulating and implementing energy plans and programs. It highlights the need for significant financing to cover the energy deficit, as well as the scarcity of energy planners, technical skills, and information base in these countries. This suggests that the text is primarily concerned with the challenges of energy development in developing countries.

**Category**
Economic development, Natural resources and environment