ANNUAL WORK PLAN FY 2019 EAST AFRICA ENERGY PROGRAM (EAEP)
Draft 7: 21 October 2019
DISCLAIMER This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of RTI International and do not necessarily reflect the views of USAID or the United States Government. This report was prepared under Contract Number AID-720-674-18-D-00004 / AID-720-674-19- F-00004. This document is intended to comply with Section 508 Standard of the Federal Acquisition Regulation. If you have any difficulties accessing this document, please contact [email protected].
CONTENTS
List of Tables ...... iv
List of Figures ...... iv List of Abbreviations and Acronyms ...... v 1. Executive Summary ...... 1 Overview 1 Structure of the Work Plan ...... 1
Top-Level Summary of Expected Results and Deliverables in Fiscal Year (FY) 2019 ...... 1
Summary of Proposed Interventions, Expected Results and Deliverables in FY 2019, by Country ...... 1 Ethiopia ...... 1 Kenya ...... 2 Rwanda ...... 3 Tanzania ...... 4 Regional Activities ...... 4 Summary of Deliverables ...... 5
Risks and Mitigation Measures ...... 6
2. Technical Approach...... 8 Overview ...... 8 Plan for Collaborating with Power Africa’s Development Partners ...... 9
Coordination with Partner Government Counterparts ...... 10
EAEP Pathway: Journey to Self Reliance ...... 11
3. Ethiopia ...... 14 Objective 1: Optimized Power Supply ...... 14 ET 1.1: Bring new power generation capacity to financial close ...... 14 ET 1.2: Support the government and utilities to improve their power generation, transmission, and distribution planning ...... 15 ET 1.3: Improve legal and regulatory frameworks to stimulate private-sector investment ...... 16 ET 1.4: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects ...... 17 ET 1.5: Strengthen capacity of regulators ...... 17 ET 1.6: Strengthen capacity of private-sector partners, host-country entities, and community-based groups to promote environmentally and socially responsible power projects ...... 17 Objective 2: Increased Grid-Based Power Connections ...... 18 ET 2.1: Build capacity of the EEU to install over 1 million new meters annually ...... 18 ET 2.2: Help stimulate demand for on-grid power ...... 19 Objective 3: Strengthened Utilities and Other Power Sector Entities...... 19 ET 3.1: Implement rollout of Meter-to-Cash Program to reduce aggregate losses ...... 19 ET 3.2: Assist EEU with the implementation of a smart-grid pilot project ...... 22 ET 3.3: Improve performance and cost recovery of EEU in terms of reduced frequency and duration of outages ...... 22 Objective 4: Increased Regional Power Trade ...... 23
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | I ET 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading ...... 23 ET 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading ...... 23 ET 4.3: Improve regional coordination and planning at EAPP, Nile Equatorial Lakes Subsidiary Action Program (NELSAP), energy ministries, and member state electric utilities ...... 24
4. Kenya ...... 27 Objective 1: Optimized Power Supply ...... 28 KE 1.1: Bringing new power generation capacity to financial close ...... 28 KE 1.2: Accelerating national transmission projects ...... 28 KE 1.3: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects ...... 29 Objective 2: Increased Grid-Based Power Connections ...... 30 KE 2.1: Support the implementation of Kenya’s Energy ACT 2019 ...... 30 KE 2.2: Kenya—Assistance with the implementation of a distribution master plan ...... 31 Objective 3: Strengthened Utilities and Other Power Sector Entities...... 31 KE 3.1: Kenya—Assistance to KPLC ...... 31 KE 3.2: Kenya—Support KPLC in the implementation of its new 2017–2023 corporate strategy ...... 32 KE 3.3: Improve performance (reduced frequency and duration of outages) and cost recovery of KPLC ...... 33 Objective 4: Increased Regional Power Trade ...... 34 KE 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading ...... 34 KE 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading ...... 34 KE 4.3: Assist in the development and implementation of high-priority regional power infrastructure projects ...... 35 KE 4.4: Provide transaction advisory assistance to EKT ...... 35
5. Rwanda ...... 38 Objective 1: Optimized Power Supply ...... 39 RW 1.1: Bringing new power generation capacity to financial close ...... 39 RW 1.2: Accelerating national transmission projects ...... 41 RW 1.3: Supporting the government and utilities to improve their power generation, transmission, and distribution planning ...... 41 RW 1.4: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects ...... 41 RW 1.5: Strengthen capacity of regulators...... 42 Objective 4: Increased Regional Power Trade ...... 43 RW 4.1: Build capacity of Eastern Africa Power Pool (EAPP) member utilities and generation companies to improve overall operational and technical readiness for power trading ...... 43
6. Tanzania ...... 45 Objective 1: Optimized Power Supply ...... 46
TZ 1.1: Bring new power generation capacity to financial close (FC) ...... 46 TZ 1.2: Accelerate national transmission projects ...... 46
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | ii TZ 1.3: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects ...... 46 TZ 1.4: Strengthen capacity of regulators ...... 47 Objective 2: Increased Grid-Based Power Connections ...... 48 TZ 2.1: Support utilities and rural electrification agencies in reducing the cost of connections and time required to connect to the grid ...... 48 Objective 4: Increased Regional Power Trade ...... 48 TZ 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading ...... 48 TZ 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading ...... 49 TZ 4.3: Improve regional coordination and planning at EAPP, Nile Equatorial Lakes Subsidiary Action Program (NELSAP), energy ministries, and member state electric utilities ...... 49
7. Other Countries and Regional Work ...... 51 Uganda ...... 51
Burundi ...... 51
Somalia ...... 51
EAEP Regional Activities ...... 51
8. Cross Cutting Activities ...... 52 Sustaining Institutional Performance Improvements ...... 52 CB 1: Establish Institutional Performance Capacity Building Program ...... 52 CB 2: Launch Human and Institutional Capacity Development (HICD) at select Utilities ...... 53 Environmental Activities ...... 54 E 1: Coordination with environmental NGOs ...... 54 E 2: Preliminary environmental reviews and support for EAEP activities ...... 54 E 3: Develop Environmental Action Plan for EAEP ...... 55 Community Engagement ...... 55 CE 1: PACO Coordination ...... 55 CE 2: Support community level engagement for a sub-set of targeted projects for FY 2019 and FY 2020 in Kenya and Ethiopia: ...... 55 Gender 56 G 1: Gender Gaps Analysis in four countries ...... 56 G 2: Develop and expand networks of women in energy in target countries ...... 57 G 3: Develop a EAEP Gender Toolkit ...... 57 PACO Coordination ...... 57
Monitoring, Evaluation and Learning ...... 58
Communications ...... 58
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | ES-iii LIST OF TABLES
Table 1: Summary of deliverables for Ethiopia Objective 1 ...... 18 Table 2: Summary of deliverables for Ethiopia Objective 2 ...... 19
Table 3: Summary of deliverables for Ethiopia Objective 3 ...... 22
Table 4: Ethiopia Summary of planned assistance and time frames ...... 25
Table 5: KenGen generation projects to receive transaction advisory assistance ...... 28
Table 6: Summary of deliverables for Kenya Objective 1 ...... 30
Table 7: Summary of deliverables for Kenya Objective 2 ...... 31
Table 8: Summary of deliverables for Kenya Objective 3 ...... 33
Table 9: Kenya Summary of planned assistance and time frames ...... 35
Table 10: Chronological list of projects for support under Objective 1 ...... 40
Table 11: Summary of deliverables for Rwanda Objective 1 ...... 42
Table 12: Rwanda Summary of planned assistance and time frames ...... 44
Table 13: Illustrative list of potentially supportable projects in Tanzania ...... 46
Table 14: Summary of deliverables for Tanzania Objective 1 ...... 48
Table 15: Summary of deliverables for Tanzania Objective 2 ...... 48
Table 16: Summary of deliverables for Tanzania Objective 4 ...... 49
Table 17: Tanzania Summary of planned assistance and timeframes ...... 50
Table 18: Summary of deliverables for institutional strengthening ...... 54
Table 19: Summary of deliverables for environment ...... 55
Table 20: Summary of deliverables for community engagement ...... 56
Table 21: Summary of deliverables for gender ...... 57
Table 22: Summary of deliverables for PACO coordination ...... 58
Table 23: Summary of deliverables for Monitoring, Evaluation, and Learning ...... 58
Table 24: Summary of deliverables for communications ...... 58
Table 25: Cross-cutting Summary of planned deliverables and timeframes ...... 59
LIST OF FIGURES
Figure 1. Commitment ...... 11 Figure 2. Capacity...... 12
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | iv LIST OF ABBREVIATIONS AND ACRONYMS
AfDB African Development Bank ATC&C Aggregate technical, commercial, and collections BOT build-own-transfer CEO Chief Executive Officer CIS coordination/collaboration implementation strategy CLA collaborating, learning and adapting COD Commencement of Operations Date DRC Democratic Republic of the Congo DSSP Distribution System Strengthening Project EAEP East Africa Energy Program EAPP Eastern Africa Power Pool EDCL Energy Development Corporation Ltd. EEA Ethiopian Energy Authority EEP Ethiopian Electric Power EEU Ethiopian Electric Utility EKT Ethiopia–Kenya–Tanzania ELEAP Ethiopia Electrification Program (World Bank) EMMP Environment Monitoring and Management Plan EPRA Energy and Petroleum Regulatory Authority EUCL Energy Utility Corporation Ltd. EWiEN Ethiopian Women in Energy Network EWURA Energy and Water Utilities Regulatory Authority FC financial close GIS geographic information system GMSP Power Africa Grid Management Support Program GOE Government of Ethiopia GOK Government of Kenya GOR Government of Rwanda GOT Government of Tanzania HICD Human and Institutional Capacity Development HR human resources IA implementation agreement IRB Independent Regulatory Board IRP Integrated resource planning KenGen Kenya Electric Generating Company KETRACO Kenya Electric Transmission Company KNES Kenya National Electrification Strategy KPI key performance indicators KPLC Kenya Power and Lighting Company kV kilovolt kW kilowatt kWh kilowatt-hour LCPDP least-cost power development plan LV low voltage MoE Ministry of Energy (Tanzania) MoWIE Ministry of Water, Irrigation, and Energy (Ethiopia) MW megawatt MV medium voltage M&E monitoring and evaluation NARUC National Association of Regulatory Utility Commissioners
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | ES-v NELSAP Nile Equatorial Lakes Subsidiary Action Program NEP National Electrification Program (Ethiopia) NGO Non-government organizations NRECA National Rural Electric Cooperative Association NRF Norton Rose Fulbright OPIC Overseas Private Investment Corporation OTA Office of Technical Assistance (US Department of Treasury) PACO Power Africa Coordinator’s Office PATRP Power Africa Transactions and Reforms Program PATT Power Africa Tracking Tool PMO Project Management Office (Kenya) PMU Project Management Unit PPA Power Purchase Agreement PPP public–private partnership RAP resettlement action plan REA Rural Energy Agency (Tanzania) REA Rural Electrification Authority (Kenya) REG Rwanda Energy Group REREC Rural Electrification and Renewable Energy Corporation (Kenya) RURA Rwanda Utilities Regulatory Authority SAEP Southern Africa Energy Program SAIDI system average interruption duration index SAIFI system average interruption frequency index SAPP Southern Africa Power Pool SAREL Sahel Resilience Learning SOW Scope of Work SPP small power producer SRUC Sector Reform and Utility Commercialization STTA short-term technical assistance TANESCO Tanzania Electric Supply Company TSA Transmission Service Agreement USAID United States Agency for International Development USTDA United States Trade and Development Agency WB World Bank WG working group WIRE Women In Rwandan Energy YALI Young African Leaders Initiative ZTK Zambia–Tanzania–Kenya
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | vi 1. EXECUTIVE SUMMARY
OVERVIEW This work plan for the East Africa Energy Program (EAEP) was prepared in compliance with the requirements of the Task Order 720-674-19-F-00004. It covers the period from December 2018 to September 30, 2019. It addresses services, tasks, and activities as outlined in the Scope of Work (SOW), and describes labor, tools, methodologies and a sequence of activities according to requirements in section F.10.3 of the contract. In addition, this work plan maps out plans for collaborating with Power Africa partners, governments, and other players in the energy sector. It likewise outlines the strategies and activities designed to achieve the crosscutting task order objectives.
STRUCTURE OF THE WORK PLAN Section 1 Executive Summary Section 2 Technical Approach Section 3 Ethiopia Section 4 Kenya Section 5 Rwanda Section 6 Tanzania Section 7 Other Countries and Regional Work Section 8 Cross-cutting: Environment, Gender Integration, and Communication Activities
TOP-LEVEL SUMMARY OF EXPECTED RESULTS AND DELIVERABLES IN FISCAL YEAR (FY) 2019 The following summary shows expected results and deliverables, by country and objective, in the first year (FY 2019). Timelines for these activities will be finalized pending USAID review of this draft version and agreement on priority activities, including possible USAID–stakeholder consultations on priorities and timeframes. Adhering to these timelines will be contingent on timely review and engagement by partners and stakeholder institutions throughout the project year.
SUMMARY OF PROPOSED INTERVENTIONS, EXPECTED RESULTS AND DELIVERABLES IN FY 2019, BY COUNTRY
Ethiopia Ethiopia represents a rare opportunity where great demand for Power Africa services and support are simultaneously met with strong political support for reform, for opening up the Ethiopian market to private investment and foreign capital, and for innovation. EAEP believes Ethiopia provides the best opportunity to aggressively extend and densify the distribution network, improve financial and technical performance of the distribution utility, and build an investment framework for further private investment into generation assets.
Objective 1: Optimized Power Supply. EAEP’s focus for FY 2019 will be on advancing the Corbetti geothermal (150 MW), Tulu Moye geothermal (100 MW), and Metehara solar (100 MW), projects toward financial close (FC). Over multiple phases, these projects have the potential to deliver up to 400 MW of renewable power to Ethiopia’s national grid. Initial phases currently under negotiation have been confirmed at 150 MW each for Corbetti and Tulu Moye projects. EAEP’s transaction advisers will assist in finalizing the Resettlement Action Plan, which is vital in securing the World Bank’s partial risk guarantee. EAEP’s distribution team will closely work with National Rural
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-1 Electric Cooperative Association (NRECA) on the improvement of data integration and information into existing and improved EEU systems and processes. The team will develop a gap analysis report that looks at the gap between the distribution network maps and Geographic Information System (GIS) assets.
Objective 2: Increased Grid-Based Power Connections. EAEP’s distribution engineers will review the GIS integration of medium voltage (MV) network and analysis of the content of the distribution network map. The team will likewise work closely with the EEU on the government’s connection of 3.8 million customers, which are largely unmetered and are connected through unsafe service drops.
Objective 3: Strengthened Utilities and Other Power Sector Entities. EAEP has placed a six-person utility advisory team (three third-country nationals and three cooperating-country nationals) within the Ethiopian Electric Utility (EEU) to offer targeted support for loss reduction and revenue protection. To secure the greatest impact, the team will focus on the newly created Addis Ababa region, which represents roughly 40% of EEU’s revenue generation. The team will develop a “utility turn around” plan that looks at utility management and commercialization, revenue protection and revenue management and customer service.
EAEP will support the Ethiopian Energy Authority (EEA) with capacity building and technical assistance regarding its new responsibility of geothermal regulation and will collaborate with the AfDB and the National Association of Regulatory Utility Commissioners (NARUC) with implementation of the Uniform System of Accounts.
Objective 4: Increased Regional Power Trade. EAEP’s Regional Power Team will work closely with Tractebel funded by the World Bank, which is the largest financial and technical supporter of activities related to the East Africa Power Pool (EAPP). Tractebel is leading the activities designed to bridge the gaps on the technical and operational readiness of the relevant power utilities. The EAEP team’s focus for FY 2019 is to build trust and lay down the foundation for a close working relationship with EAPP Secretariat, coordinate and harmonize with member countries capacity building requirements to ensure that EAEP adds value to the power pool as it ramps up its activities focusing on cross-border trade of electricity in the succeeding years.
Kenya Kenya’s utilities are among Africa’s highest performing, and Kenyan energy institutions have requested the most clearly defined areas of support. EAEP’s start-up has also coincided with the adoption of the new 2019 Energy Act, which brings about a complex reorganization of the sector and changes mandates of the key institutions such as the regulator, the Kenya Rural Electrification and Renewable Energy Corporation (REREC), and county governments. Within this context, EAEP’s dedicated advisors will support the Kenya Power and Lighting Company (KPLC) and Kenya Electricity Transmission Company Ltd. (KETRACO) and Kenya Electricity Generating Company Ltd. (KenGen) to focus support on mutually agreed-upon priority and urgent projects.
Objective 1: Optimized Power Supply. EAEP’s transaction advisory team will focus on a select late-stage development projects bringing these to financial close (FC) and with projects that have reached FC and closer to commercial operation. The team will also work with KETRACO on its five proposed transmission projects to be developed under a Public Private Partnership financing agreement. EAEP will build the capacity of the public–private partnership (PPP) unit of KETRACO, assist KenGen in the effective implementation of its Horizon II Growth Strategy and will embed a Sr.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-2 Technical Advisor to the Ministry of Energy to ensure a harmonized alignment of all EAEP’s activities with the goals and objectives of Government of Kenya (GOK).
EAEP’s Community Engagement Adviser will also work with local communities that may be subject to the impact of power utilities; thus, securing buy-in and local support for these projects.
Objective 2: Increased Grid-Based Power Connections. EAEP will provide technical guidance in the implementation of the new Kenya Energy Act 2019 mainly in the identification of possible secondary legislation needed to support the Act’s implementation in close collaboration with development financial institutions. EAEP will also support KPLC as it migrates to a new and enhanced distribution master plan.
Objective 3: Strengthened Utilities and Other Power Sector Entities. EAEP will also support KPLC in the implementation of its new corporate strategy. The strategy aims to arrest declining profitability, address steep challenges stemming from changes in the power industry structure, explore innovation and emerging technology and introduce change management strategies. EAEP’s dedicated three-person loss-reduction team will develop a diagnostic report and performance improvement plan for the pilot regions, Nairobi North and South Nyanza, that will be used as a road map for future activities. For FY 2019, the team will establish baselines for quantifiable measurable results and assess existing practices and processes. The assessment will be complemented with an in-depth capacity building, hands on training of staff on the new processes as well as consumer education and information campaigns.
Objective 4: Increased Regional Power Trade. EAEP will support the implementation of Tractebel work funded by the World Bank, which assists in addressing the gaps in preparation for operational and technical readiness of the relevant power utilities. EAEP’s legal and technical team will provide guidance in the drafting of the Interconnection Agreement between Kenya and Ethiopia. The team will also facilitate discussions between KETRACO and Tanzania Electric Supply Company (TANESCO) in finalizing the Transmission Service Agreement, which defines the wheeling charges imposed for regional power exchange.
Rwanda Rwanda has a more diversified generation sector than many East African countries because it can take advantage of methane under Lake Kivu as well as peat resources; private generation supplies most of Rwanda’s energy needs. However, there is a risk of oversupply of generation that the country will have to manage. EAEP will prioritize improved planning and strategy and will help the Rwanda Energy Group (REG) analyze its options regarding its existing IPPs while supporting demand generation and increased productive use. The team will prioritize support to the EDCL with focus on two generation power projects: a) Nyabarongo hydropower project (43.5 MW) and b): Symbion project (50 MW).
Objective 1: Optimized Power Supply. The Government of Rwanda (GOR) embarked on a least cost power development plan (LCPDP), which may have an adverse impact on generation projects in the pipeline. EAEP’s Country Technical Lead will evaluate such impacts and the projects that may be adversely affected by the outcome of the LCPDP and assist in the development of a risk management plan. EAEP will also support REG and Energy Utility Corporation Ltd (EUCL) in facilitating technical and financial agreements for transmission projects. EAEP’s legal experts will also assist Rwanda Utilities Regulatory Authority (RURA) in reviewing the captive power regulation.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-3 Objective 4: Increased Regional Power Trade. The core of EAEP’s activities for the Regional Power Trade objective will be mostly carried out during FY 2020. In light of the ongoing discussions between Uganda and Rwanda on cross-border electrical trade, the EAEP team will continue to collaborate with Tractebel, funded by the World Bank, and with REG in bridging the technical and operational gaps required to engage in cross-border power trade with its neighbors. The team will also sustain efforts to build a harmonious working relationship with the EAPP Secretariat and will identify technical work being supported by other donors to ensure efforts remain consistently aligned. EAEP will seek opportunities to leverage interventions underway or planned by other donors when interacting with the broader donor community supporting EAPP.
Tanzania EAEP’s activities in Tanzania for the FY 2019 will mainly focus on capacity needs assessment of relevant government utilities including the regulator. Activities are expected to ramp up as the project enters the second fiscal year of its performance period.
Objective 1: Optimized Power Supply. For FY 2019, EAEP’s transaction adviser will closely consult with the Government of Tanzania (GOT) in compiling a list of power projects that may be classified under the Power Africa-supported project portfolio. The list may include the recent awardees under the small power producers (SPPs) auction and other developers that GOT will identify in the future. It may also include some of the 200 MW and wind, 150 MW of solar, and 600 MW of thermal generation projects currently being tendered by the GOT under competitive processes.
Objective 2: Increased Grid-Based Power Connections. The EAEP Grid Extension Lead and distribution engineer will build on the output of the Sector Reform and Utility Commercialization (SRUC) team that assessed the barriers to household connection, including a breakdown of the total connection costs. The team will assist the Rural Energy Agency (REA) in implementing the recommendations proposed in the assessment report. In addition, the Grid Extension Team will build the capacity of REA to improve its project planning, management, and supervision of grid extension projects.
Objective 4: Increased Regional Power Trade. EAEP will support transmission connections that link the Southern Africa Power Pool (SAPP) and EAPP. Building on the work of the Power Africa Transactions and Reform Program (PATRP), EAEP’s Regional Power Trade team will engage with Tanzanian stakeholders, particularly TANESCO, to bring members of EAPP Ethiopia-Kenya- Tanzania (EKT) technical working group together to finalize the Kenya wheeling agreement and other interconnection and related agreements necessary to conclude the EKT transaction. As in the other countries in the region, EAEP will work closely with Tractebel, which is funded by the World Bank, in preparing utilities for technical and operational readiness as a prerequisite to regional power trade.
Regional Activities Regional activities will focus on building regional cooperation and improving dialogue among East African countries, with the ultimate goal of facilitating technical, commercial, and operational uniformity among members of the EAPP. Doing so will require a combination of top-down and bottom-up support, working at the level of the EAPP Secretariat but also at the level of national utilities, fostering dialogue, technical collaboration, and sharing of lessons learned while simultaneously establishing action plans and calendars with specific responsibilities and deadlines for moving forward in lockstep toward eventual bilateral and then pooled trade of electricity. This work
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-4 will be led by EAEP’s Power Pool Advisor working closely with EAPP Secretariat, and will benefit from the support of EAEP’s technical experts in all four priority countries (Ethiopia, Kenya, Tanzania and Rwanda), while maintaining a continuous dialogue with the remaining EAPP countries.
Looking ahead to FY 2020, EAEP will seek to make training and capacity-building available to other EAPP countries and not just Ethiopia, Kenya, Rwanda, and Tanzania. EAEP will also help facilitate meetings of the EAPP Technical Committees to ensure proper planning and to identify areas of technical support needed at the utility level to ensure regional integration of energy infrastructure and the development of agreements, protocols, and procedures to facilitate a day-ahead market.
Because cross-border transmission infrastructure can be considered regional, EAEP support for the continued build-out of key transmission lines will also be an important element in promoting bilateral dialogue for power trade. Our transaction, legal and financial advisors will help advance key cross- border infrastructure and agreements, such as the Ethiopia-Kenya-Tanzania (EKT) transaction, while drawing lessons learned into Power Africa-branded learning products that will offer thought leadership. EAEP will give priority support to priority cross-border transmission infrastructure, while ensuring that bilateral trading arrangements inform the EAPP trading platform as a whole.
SUMMARY OF DELIVERABLES The following table summarizes anticipated deliverables which will be completed in FY 2019, organized by country. Additional deliverables started in FY2019 and continued into FY2020 are included in section 2.
Summary of Deliverables to be Completed in FY 2019 Ethiopia Metehara Resettlement Action Plan Diagnostic Report of current technical and commercial losses for EEU Transformation Plan for EEU Report on EAEP support for EEU Database Cleanup Report on recommended functional EEU realignment and job descriptions Report on proposed performance-driven EEU regulations to improve employee discipline Report on proposed new EEU commercial cycle, theft detection and follow up process Report on recommended formation of an EEU analytics team and analytics training Documentation of capacity building of the EEU revenue protection team Rapid Capacity Assessment of EEU utilities and training institutions Gender gap assessment of opportunities to improve gender integration in EEU Kenya Report on the financial close of Malindi Solar power project (40 MW), Alten Kesses Solar PV (40 MW) and Rupingazi Hydro (6.8 MW) Report on commissioning of Olkaria V geothermal power plant (158 MW) Diagnostic Report for KPLC and Performance Baseline Transformation Plan for KPLC
KPLC Report on current procedures (“Process Flow”)
Gap Analysis for process flow for KPLC
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-5 Summary of Deliverables to be Completed in FY 2019
KPLC Report on Recommended improved procedures (“Process Flows”) and change management plans Report on the reduction of frequency and duration of outages as well as cost recovery of KPLC
Kenya Utility and Training Institutions Rapid Capacity Assessment Gender gap assessment of opportunities in KPLC for better gender integration Rwanda Report on the review of RURA’s captive power regulation Rwanda Utility and Training Institutions Rapid Capacity Assessment Gender gap assessment Tanzania GIS Assets and Distribution Needs Assessment for TANESCO and REA Tanzania Utility and Training Institutions Rapid Capacity Assessment Gender gap assessment of opportunities to improve gender integration in TANESCO Cross-Cutting / Regional Report on East Africa Additional Cross-border Power Trade Potential Institutional Capacity Strengthening Framework and Training Implementation Guide Environmental Monitoring and Management Plan (EMMP) Community Engagement Action Plan PACO Coordination and Collaboration Strategy Monitoring, Evaluation and Learning Plan Gender Strategy and Action Plan Communications Strategy and Action Plan Report for Kenya and Ethiopia (Rapid Diagnostic) showing energy transactions that might require community engagement and support
RISKS AND MITIGATION MEASURES Anticipated challenges during the implementation of EAEP’s work plan include:
A challenging ecosystem of technical assistance, multiple donors, and overlapping mandates among donors and their contractors. East Africa has long enjoyed significant donor support from multiple sources, and the power sector is no exception, but it requires a steadfast dedication to collaboration, coordination, and channels for information sharing. Multiple actors engaged with the same stakeholders in projects with similar goals introduce the risk of duplicating efforts while overburdening institutional capacity and frustrating key counterparts. EAEP will address this risk by ensuring our country technical leads and country representatives participate in any existing activity coordination mechanisms, and by informing the Power Africa Coordinator’s Office of any identified conflicts or duplications. Where existing coordination mechanisms are ineffective, EAEP will offer Power Africa recommendations for their improvement, so Power Africa can discuss them with other development partners.
Using these same structures, EAEP will coordinate with other parties to avoid “training fatigue”; to prevent duplicative reports, studies, and activities; and to target the best stakeholder institutional representatives for training and capacity building. Central to this plan will be our PACO
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-6 Coordinator, who will assemble and disseminate information, build trackers and matrices to map institutions and their activities, and facilitate productive flow of information across national and institutional boundaries.
Stakeholder buy-in: EAEP will best be able to deliver the results anticipated by Power Africa where stakeholders—ministries, regulators, national utilities, civil society groups, and communities surrounding infrastructure investments—are fully committed to working with EAEP and to collaborating in full to learn best practices and put them into use. The EAEP team will address this risk by carefully and thoroughly engaging these same stakeholders during activity preparation, designing activities that meet stakeholder needs and expectations, and giving stakeholders opportunities to influence the design and implementation. This effort will include strengthening the capacity of government and private sector partners to meaningfully engage with stakeholder communities, as well as supporting strengthened and accountable regulatory frameworks for environmental and social impact analyses and community resettlement.
Exogenous/geopolitical factors: EAEP, as a regional program, has no chance of sidestepping some delicate geopolitical contexts, including the level of willingness of diverse East African countries to trade power with their neighbors, their willingness to engage in regional trade at all, and diverse ethnic considerations that affect national priorities. EAEP has proactively chosen team members who have demonstrated significant cultural and geopolitical awareness. The program also has prioritized employment of country technical leads in Rwanda and Tanzania, and a Chief of Party in Kenya, and Senior Office Director/Transaction Advisor in Ethiopia, who not only are able to interpret daily events but also can help ensure the program advances with the best possible understanding of such cultural and political sensitivities and recommend how best to address them.
Balancing national priorities against the program scope and design: The power sector in all East African countries is dynamic, and national and institutional priorities are expected to change over time in response to market dynamics, political priorities, and technical progress. EAEP will address this challenge by remaining flexible and adopting an adaptive management approach that will permit the program to prioritize its resources where they are most needed and to adapt our approach as necessary to ensure project resources are utilized where they will have the most impact.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-7 2. TECHNICAL APPROACH
OVERVIEW To uniformly implement the four objectives of the task order, EAEP will apply the following approaches:
1. Position EAEP as a reliable advisor to country stakeholders, to build trust; ensure regularity of communication; and ensure that EAEP remains well-briefed on current and planned activities, challenges, and priority needs for assistance. Building trust will be fundamental to success. It will require regular communication with stakeholders and an approach that emphasizes dedication and attention to solving stakeholders’ technical and organizational challenges while helping those same stakeholders coordinate multiple donors’ efforts.
2. Integrate priority and ad hoc requests into a matrix of planned activities to ensure proper staffing and deployment of resources.
3. Set priorities in collaboration with USAID personnel to ensure that resources correspond to EAEP objectives, Power Africa’s overall priorities, and respond to national priorities, while at the same time maintaining Power Africa as a trusted and reliable partner for resolving real problems identified at the national level.
4. Identify results expected and a baseline against which performance can be measured. Identify opportunities for learning, collaboration, communication, and outreach wherever possible, so that results can be communicated with and intellectual property can be developed on behalf of Power Africa.
5. Ensure that collaboration, learning, and adaptation remain at the center of the project cycle to identify challenges and apply remedies where necessary.
EAEP will also apply the following principles to project activities, both for consistency and to ensure that work remains integrated and well-coordinated throughout the project life cycle:
Inclusivity: EAEP will strive to make training events available to all countries, not just Ethiopia, Kenya, Rwanda, and Tanzania; and to use the events as a communication tool to build trust with other countries and institutions.
Sharing: EAEP will share knowledge and best practices across stakeholder institutions, bringing representatives together with each other and with non-East Africa regions to expose them to success stories and best practices from other regions.
Scaling up: EAEP will use Kenya as a training platform to catalyze frequent gathering—under the Power Africa label—for skill-building, knowledge transfer, and collaboration. Because knowledge transfer and trust building are essential to the imminent requirements of members of the East Africa Power Pool, we believe these joint events will also serve as a mechanism for building camaraderie and trust in support of regional market objectives.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-8 PLAN FOR COLLABORATING WITH POWER AFRICA’S DEVELOPMENT PARTNERS The EAEP team has been organized and structured for continuous coordination with USAID—ready to respond to, if not anticipate, requests within the framework of the task order. EAEP has 45 staff strategically assigned across the EAEP scope of country coverage. Although the physical presence of the team is concentrated mainly in Kenya and Ethiopia, EAEP’s Technical Leads for each objective (Optimized Power Supply, Grid Extension, Strengthened Utilities, Regional Power Trade) and other technical staff are prepared to offer engagement and collaboration to all the countries covered in the Task Order.
For the first year, EAEP anticipates focusing on Ethiopia, Kenya, Rwanda, and Tanzania. The team is reinforced with additional subject-matter specialists whose skills have been identified to implement the various activities as prioritized by USAID and the government counterparts. EAEP’s home office team support, led by EAEP’s Senior Project Manager, will constantly monitor progress toward completion of activities committed to under the work plan, and will alert USAID of challenges and risks that may impede or derail timely delivery of such activities, particularly if the bottlenecks in an otherwise smooth implementation are beyond the control of EAEP.
Key to this support is the Senior PMU Director/Power Africa (“PACO”) Coordinator. This position was designed into EAEP’s program implementation approach to handle the significant challenge of ensuring that EAEP and Power Africa coordinate and jointly organize across multiple program activities. The combined efforts will encompass a broad ecosystem of technical partners (United States Energy Association, NARUC, etc.); government partners (Overseas Private Investment Corporation [OPIC]/United States Development Finance Agency, Millennium Challenge Corporation, United States Trade and Development Agency [USTDA], etc.); commercial and industrial partners; other donors and technical partners (World Bank, AfDB, International Finance Corporation, KfW Development Bank, AFD- Agence Française de Développement, JICA - Japan International Cooperation Agency, SIDA - Swedish International Development Cooperation Agency, etc.); and associated investment programs and donor-funded technical projects, including other Power Africa programs (SAEP, Power Africa Off-grid Program, and Western Africa Energy Program). Supporting this role are the country technical leads responsible for handling coordination within specific countries (Rwanda, Tanzania). The Senior PMU Director/PACO Coordinator will develop matrices of EAEP activities and projects under way in each country, leveraging the country presence of EAEP personnel in key countries (Ethiopia, Kenya, Rwanda, Tanzania). EAEP will update these matrices regularly, using information shared during coordination meetings with individual countries’ energy-sector donors.
EAEP will prepare Power Africa’s weekly updates across all country coverage, contribute to Power Africa monthly reporting and introduce other communication tools to improve coordination between EAEP and USAID. EAEP will update as accurately as feasible the Power Africa Tracking Tool (PATT) and the Power Africa Information System (PAIS) on a quarterly basis and will verify all of the inputs collated from field personnel.
With USAID, EAEP will track activities of other US Government agencies as well as other development partners to prevent duplication and waste of project resources. Country team leads will be responsible for tracking local activities and reporting them to the PACO Coordinator for collation and organization. EAEP will identify needs for services in high-value activities relevant to Power Africa such as in agriculture, education, and health services; and will stimulate demand for energy where possible. EAEP will actively participate in all coordination meetings, dialogues, forums
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-9 that may significantly impact the implementation of the project. Power Africa technical leads and/or subject-matter specialists will constantly monitor activities implemented that are relevant to and may either favor or hinder the achievement of Power Africa’ s objectives. EAEP will also monitor opportunities to leverage funding to maximize the project’s resources.
Country Leads will likewise track, via an internal calendar of activities of all development partners, particularly if they involve communication and outreach or stakeholder engagements. The combined calendar should facilitate finding opportunities for collaboration, co-sharing, or co-organizing with other donors’ networks.
COORDINATION WITH PARTNER GOVERNMENT COUNTERPARTS Government engagement will be led in each country by the individual or individuals best suited to serve as a steady point of contact. Because Rwanda and Tanzania are expected to have a smaller overall team presence, the points of contact there for all national entities will also as serve as the country technical lead.
In Ethiopia, our office lead for coordination with USAID and Power Africa partners, will serve as point of contact for coordination with USAID/Ethiopia, Ethiopian government contacts, and internally with the rest of the EAEP team based in Kenya and elsewhere. The Grid Extension Lead will be the primary point of contact with EEU, given the daily contact EEU will have with this team. Senior Embedded Advisor is to be implanted within Ethiopia Electric Power (EEP), offering embedded advisory services as well to the Ministry of Water, Irrigation, and Electricity (MoWIE). The Advisor is expected to field requests from EEP and occasionally from MoWIE but will endorse them through the office lead to ensure a one-team approach to handling information flow, planning, and coordination.
In Kenya, a larger team has been established to meet program goals and to coordinate with national government counterparts. Sr. Technical Adviser recently joined EAEP to serve as the embedded adviser to the Ministry of Energy. Relations with Kenya Power and Lighting Company (KPLC) and Kenya Electric Transmission Company (KETRACO) are to be the responsibility of the Ketraco Advisor; relations with KenGen the responsibility of the KenGen Advisor. Individual technical specialists (gender, communications) will engage directly with their relevant cohorts in stakeholder institutions, keeping these advisors and the Chief of Party informed of ongoing planning and technical work, for team understanding of ongoing dialogue. Although the objective is unified receipt and processing of information, a broader team in Kenya will allow for more direct engagement with government counterparts.
While the workload advances and evolves over the course of this four-year program, EAEP will reassess country priorities and opportunities for broader engagement on a quarterly basis, including the opportunity to place part-time advisors in countries that eventually require additional support or where opportunities to achieve EAEP goals become more easily available. In particular, Uganda may merit a more sustained presence starting in FY 2020, even if it requires reassigning some personnel. The EAEP management team will maintain an open dialogue with partner nations to continually engage potential stakeholders and ensure that EAEP planning takes into consideration other opportunities that emerge through collaboration and regional engagement.
EAEP recognizes that USAID is the key actor in the project-to-government relationship, and must remain at the nexus of all engagement, decisions about resource reprioritization, and stakeholder activities. The Country Technical Leads in Rwanda and Tanzania, the Chief of Party in Kenya, and the
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-10 Office Director in Ethiopia will be responsible for apprising relevant USAID representatives covering the energy sector; monitoring, evaluation, and learning; economic growth; environmental and social responsibility; and other technical sectors of planned activities, opportunities for engagement, results achieved, and challenges. These same team members are also tasked with ensuring that USAID and the US Government at large are engaged where necessary to push for meaningful reforms, engagement, or high-level dialogue (for example, on the benefits of cost-recovery tariffs). EAEP will not meet with high-level political officials in its partner countries without previously informing USAID and requesting guidance and USAID presence during the proposed meetings.
EAEP PATHWAY: JOURNEY TO SELF RELIANCE During the performance period of EAEP, the team will design each activity to help each country move closer to the state of self-reliance. This achievement will be measured by the country’s ability to plan, finance, and implement solutions to successfully address its own development challenges.1 The journey to self-reliance is a long and challenging process, as evidenced by case studies of countries that have successfully transitioned from donor and development assistance dependence to self-reliance. EAEP’s proposed pathway to self-reliance is anchored in the country roadmaps USAID created for each partner country.
USAID uses two major sets of metrics to assess how self- reliant a country is. The COMMITMENT analytics focus on 17 key Ethiopia Kenya Rwanda Tanzania elements that define self- reliance; among them are Liberal open and accountable Democracy governance; inclusive 1 Biodiversity & development; economic 0.8 Open Habitat 0.6 Government policy; and the relative Protections capacities of the government, 0.4 civil society, citizens, and the 0.2 0 economy. This first work Social Group Trade Freedom plan, however, limits its focus Equality to selected analytics in four countries: Kenya, Ethiopia, Rwanda, and Tanzania (see Business Economic Gender Environment Gap Figures 1 and 2 at right). EAEP will revise metrics as the team implements more activities for the remaining Figure 1. Commitment life of the project.
The USAID country roadmaps have allowed EAEP to design well-targeted interventions as needed, given the development disparities in the areas addressed in the roadmaps and the uniqueness of each country. EAEP will remain flexible in updating/adjusting activities as the project is implemented over
1 USAID Journey to Self-Reliance home page: https://www.usaid.gov/selfreliance/
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-11 time and will continue to review available case studies of successful CAPACITY models of journeys to self- Ethiopia Kenya Rwanda Tanzania reliance, such as those Government from Costa Rica, Panama, Effectiveness 1.00 Export South Korea, and El Efficiency of Tax Diversification 0.80 2 Salvador, among others. 0.60 0.40 Safety and EAEP will be guided by the ICT Use 0.20 Security following principles:3 0.00 1. Advance country Civil Society and GDP per Capita ownership of the Media… project Child Health Poverty Rate EAEP held a series of consultative meetings Education Quality and dialogues with each Figure 2. Capacity government partner to define mutually agreed-upon areas of technical assistance. Given the limited resources, the consultations aimed to define priority areas as well as to create synergy among development partners working within the sector. In addition, the members and movers of EAEP are predominantly locally based or host-country nationals.
2. Mobilize public sector domestic resources for development; catalyze private sector investment for inclusive growth
The EAEP team members will serve as transaction advisers on power generation or transmission projects that are funded through public–private partnerships. As transaction advisers, the team experts will guide both the public and private investors in achieving financial close and/or navigating the various nuances of project development.
3. Prepare design-focused and well-targeted capacity-building activities
EAEP will ably address the metrics on each country’s capacity as a key strategy to move toward self-reliant status. EAEP’s FY 2019 work plan focuses heavily on assessing the capacity of each country—and, ideally, of each relevant government institution—to determine gaps in skills. The capacity assessments will inform a well-designed and custom-built package of trainings, workshops, and peer-to-peer exchanges that EAEP can support throughout the project life.
EAEP is likewise coordinating with other development partners—the National Association of Regulatory Utility Commissioners and the African Development Bank (AfDB), for example—in order to initiate applicable capacity-building activities that the country-specific regulatory bodies may need in dispensing their functions.
2 InterAction, Journey to self-reliance. https://www.interaction.org/aid-delivers/hot-topics-usaid- transformation/journey-to-self-reliance/ 3 Modernizing Foreign Assistance Network (MFAN), Principles for strategic transitions from development aid. http://modernizeaid.net/2017/11/mfan-releases-principles-guide-country-transitions-aid-partnership/
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-12 4. Engage local governments/local communities
Lessons learned from previous development assistance highlight the need to develop local government units and empower local communities. The project’s Community Engagement Advisor will support the power utilities in gaining community buy-in of projects for better planning and implementation. EAEP will also engage selected academic institutions, enhance the capacity of identified energy demonstration centers and community-based knowledge management centers as part of the journey to self-reliance.
5. Promote gender balance and equity and involve youth in project implementation
One of the key elements that should lead to self-reliance under the commitment matrix is addressing economic gender gaps. Moreover, according to the World Bank, countries with greater gender equality tend to be more prosperous and competitive.4 USAID believes that “gender equality and women’s empowerment isn’t a part of development but the core of development.” In response, EAEP will finalize its Gender Strategy and Gender Integration Plan and conduct a gender audit in Ethiopia that complements efforts by the World Bank on gender.
To lend reality to EAEP’s application of the gender/youth principle, EAEP plans to reach out to and collaborate with the Young African Leaders Initiative (YALI). EAEP will explore how women graduates of the YALI program can be part of the implementing team, especially on community and stakeholder engagement. These young women may later become project ambassadors on gender- and youth-related activities.
6. Incorporate collaborating, learning, and adapting (CLA) mechanisms to accelerate the journey to self-reliance
USAID’s Sahel Resilience Learning (SAREL)5 project demonstrated that resourced CLA facilitated the journey to self-reliance of the most vulnerable communities. EAEP will be working in diverse countries with varying degrees of socioeconomic development, and in some communities that are decidedly disadvantaged or vulnerable. The CLA mechanism will be another helpful tool in designing well-focused and tailored packages of activities that will contribute to the goals of the journey to self-reliance.
4 USAID, Gender equality and women’s empowerment, https://www.usaid.gov/what-we-do/gender-equality-and- womens-empowerment 5 USAID Learning Lab, 2018 CLA case competition, https://usaidlearninglab.org/sites/default/files/resource/files/resourced_cla_accelerates_the_journey_to_self- reliance_and_resilience_in_the_sahel.pdf (implemented by Mitchell Group and RTI International)
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-13 3. ETHIOPIA
PROGRAM OVERVIEW
Power Africa has a real opportunity in Ethiopia to deliver meaningful reforms and impact, given significant government support for increased private sector participation, meaningful sector oversight, and improved delivery of public services—all areas of support integrated into EAEP.
Pipeline Optimization: Ethiopia remains committed to its goal of universal access by 2025 through rapid growth in electricity generation, primarily financed by IPPs. This goal aligns well with the objectives of Power Africa, which aims to support new power generation and its associated transmission network. In the near term, EAEP’s focus will be on advancing the Corbetti and Tulu Moye geothermal and Metehara solar projects toward financial close (FC). Over multiple phases, these projects have the potential to deliver more than 1 GW of renewable power to Ethiopia’s national grid.
Grid Extension/Rural Electrification: In March 2019, Ethiopia unveiled its National Electrification Program (NEP) 2.0, which commits Ethiopia to reaching universal access by 2025. The NEP 2.0 calls for integrated on- and off-grid solutions that target 8.2 million new on-grid connections and around 6 million off-grid electricity users. EAEP will provide technical support to EEU in applying its newly acquired geospatial planning framework, which offers a least-cost strategy to achieve universal access. EAEP will also assist EEU in introducing best practices that will combine improved engineering and material selection with a simplified design for the low voltage (LV) network, while still meeting the minimum standards for safety and security.
Strengthened Utilities: EEU has yet to implement basic industry practices, which significantly hinders its ability to define and combat network losses and to engage in meaningful customer service. EAEP will build on the output of previous assessments done in identifying areas for high impact reform and operational improvement. As a critical step, EAEP will establish baseline data and will work with EEU to expand the Power Africa Meter2Cash project’s successful initiatives throughout the new pilot area, the Addis Ababa Region. EAEP will be focusing on managerial, business process, and low-cost infrastructural improvements, to improve the utility’s performance.
Objective 4: Power Pool/Regional Trade: EAEP has based its support to the Eastern Africa Power Pool (EAPP) in Addis Ababa for convenient access to the EAPP Secretariat, to facilitate coordination and collaboration. These include helping to conclude the negotiations of the Ethiopia– Kenya–Tanzania (EKT) transaction, in which Ethiopia will export to Tanzania, with Kenya wheeling the electricity. Ethiopia is also essential for providing low-cost electricity to neighboring Somalia and Eritrea, whose recent peace accords open an opportunity for this sort of arrangement.
OBJECTIVE 1: OPTIMIZED POWER SUPPLY
ET 1.1: Bring new power generation capacity to financial close EAEP will focus on three near-term efforts: (1) advancing the Corbetti and Tulu Moye geothermal projects and the Metehara solar project toward financial close; (2) supporting other brownfield project developments currently in the pipeline, and using them as teaching tools to identify capacity issues in key institutions; and then (3) bringing in support from Norton Rose Fulbright (NRF) and Fieldstone, in addition to EAEP’s Ethiopia-based team, to address capacity bottlenecks.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-14 ET 1.1.1 Ongoing Transaction Support to Corbetti Geothermal and Tulu Moye Power Plants These two geothermal projects are currently expected to deliver up to 150 MW of renewable power each to Ethiopia’s National Grid. Both projects reached commercial close, and were nearing Financial Close in 2019, with Corbetti (20 MW) expected in 2019 and Tulu Moye (50 MW) expected in early 2020. However, continued negotiations have led to further delays to financial close, and new provisions expected from the project developers. EAEP’s Transaction Advisor and Senior Embedded Energy Advisor, will work with the Ministry to continue to offer the support needed to conclude negotiations and facilitate both project’s financial close.
ET. 1.1.2 Technical Assistance for Metehara Solar Power Plant RAP EAEP will prioritize finalizing a resettlement action plan (RAP) to facilitate WB’s support and advance the deal. This will facilitate World Bank (WB) to issue a partial risk guarantee. Subsequently, EAEP will support the implementation of the RAP and support finalizing draft project documents for execution. EAEP’s Community Engagement Specialist and Transaction Advisor, will also support this work.
ET 1.2: Support the government and utilities to improve their power generation, transmission, and distribution planning EAEP will build on Power Africa’s support in the development, implementation, and monitoring of the country’s integrated resource planning (IRP) while building government, EEP, and EEU ability to perform medium- to long-term generation and transmission planning.
ET 1.2.1 IRP Working Group EEP embedded Advisor will work within EEU and EEP, engaging MoWIE and EEA, to create an IRP working group that will strengthen Ethiopia’s power sector planning and strategy nationally, while setting the stage for informed ability to plan energy trade (exports and imports) with neighboring countries. To start, EEP embedded Advisor and EAEP’s embedded Utility Advisors (focused on loss reduction) will identify planning and human capacity constraints within each institution to ensure they are addressed through regional training and capacity-building efforts in FY 2020 and succeeding periods of the project.
ET 1.2.2 Gap Analysis
EAEP’s Distribution team including a Engineer/GIS Specialist and Distribution Engineer, will coordinate with NRECA to sustain technical assistance on the improvement of the integration of data and information into the workflow while ensuring that EEU builds and maintains systems to centralize information management and introduce GIS data into the planning process. The team will prepare a report (submission will depend upon when NRECA is able to transfer the Geospatial data to EEU) that identifies the gap between distribution network maps and GIS assets that are being used to manage the distribution network. The proposed improvements stemming from the gap analysis report will be addressed in FY 2020. EAEP’s monitoring and evaluation (M&E) team, will oversee issues of data collection, verification, and management.
ET 1.2.3 Capacity Building and Strengthening
EAEP, led by the team’s Director for Energy and supported by EAEP’s Sr. Institutional Performance Advisor, will conduct a rapid institutional capacity assessment of EEP and other EAEP stakeholders that will inform the project’s capacity-development and training program. The assessment involves
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-15 a series of meetings with various divisions within EEP to map “as-is” organizational structure, job functions, existing skills, and processes. The assessment aims to identify gaps that exist in staffing, structure, skills, tools, and processes, and that can be addressed with EAEP’s assistance. The activity also will produce recommendations for training or capacity building designed to address such gaps.
ET 1.2.4 Outreach
EAEP will work with MoWIE and EEU to improve their approach to community outreach and communication of important energy messages. The program will also demonstrate to communities the value of access to electricity for productive use and will help them understand any changes to tariffs. In FY 2019, EAEP’s Community Engagement Advisor will review EEU’s current outreach plans and in FY 2020, he will work with MoWIE and EEU to develop a strategy for more regular, consistent, and open communication about energy with the public. The Advisor will be supported by EAEP’s Communications Director and Communication Events Planning Specialist in Nairobi, who will travel to Ethiopia as necessary to support targeted communications. EAEP will coordinate all communication materials and campaigns with MoWIE and with USAID/Ethiopia to ensure consistency of messages with Power Africa and to review any potential risks associated with the current political environment. The program also will engage the local donor community, to identify synergies and ensure consistency of messaging.
ET 1.3: Improve legal and regulatory frameworks to stimulate private-sector investment Building IPP management support is one of the primary objectives of EAEP in Ethiopia, and the most frequent request for support received from the Government of Ethiopia (GOE). EAEP will support the GOE in closing regulatory gaps and clarifying and streamlining the licensing and permitting procedures for private developers and investors. EAEP will also help the GOE clarify the mandate of the public–private partnership (PPP) unit, which is described in the PPP Proclamation No. 1076-2018 and establishes procedures to streamline the interactions between the PPP unit and the EEA.
ET 1.3.1 IPP Management Support EEP recently established a new internal IPP unit. EAEP’s transaction team will advise EEP’s Chief Executive Officer (CEO) on establishing an IPP working group (IPP WG) composed of officials from the IPP unit at EEP, the Ministry of Finance, and MoWIE and subsequently select a Chairperson for the WG. This group will assist EEP in identifying and selecting from the generation pipeline the transactions that can be assisted in achieving financial close, previously prepared by the Power Africa Grid Management Support Program (GMSP) working group. The IPP WG will recommend priority projects from among the selected transactions. The project pipeline list developed by the GMSP team will need constant revision and additional inputs to capture the reality on the ground. Such support will be developed in FY 2020.
ET 1.3.2 Roundtables
In the near term, EAEP’s transaction team, in collaboration with MoWIE, will organize roundtable discussions with different GOE agencies (including EEA, EEP, MoWIE, Ministry of Finance, Attorney General’s Office, National Bank of Ethiopia), IPP developers, and (possibly) financial institutions to discuss gaps in Ethiopia’s regulatory regime. Discussions will focus on potential conflicts that may arise as a result of the GoE’s current procurement framework, and options for the harmonization of existing laws and policies to avoid conflicts in the future.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-16 The transaction team will also assist the Ministry of Finance to review and provide input to the PPP regulations in coordination with the embedded advisor funded by the U.S Department of Treasury Office of Technical Assistance (OTA). The PPP regulations are currently being drafted and are scheduled to be submitted to the Council of Ministers before the end of the calendar year 2019.
With the assistance of NARUC’s embedded advisor and through existing project working groups (such as the geothermal project working group), the transaction team will also assist the EEA with setting up and streamlining a one stop-shop for issuing licenses for IPPs. In FY2020, the transaction team will continue to coordinate capacity-building workshops to prepare the PPP staff (currently comprising 22 individuals) for official certification.
ET 1.4: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects Based on consultations and requests for support from Ethiopian stakeholders, the priority for FY 2019 of EAEP is to improve the ability of the GOE to implement IPP projects, establish PPP/IPP units, manage competitive procurements, and issue licenses and permits.
ET 1.4.1 Strengthen the Capacity of EEP
As the off-taker of electricity in Ethiopia, the EEP plays an important role in IPP project development and has established an internal IPP unit for geothermal projects. As Ethiopia diversifies its generation mix, EAEP will support the EEP in expanding the mandate of the IPP unit to cover other energy sources and technologies and will help build its technical and organizational capacity. In FY 2019, the EEP Embedded Advisor and Transaction Advisor will advise on the gradual corporatization of EEP, and field requests from EEP management, with support from the rest of the EAEP team and RTI’s home office. • Advise on existing organizational structure for the IPP unit. EAEP will help to prioritize the organizational and staffing needs of the IPP and procurement units at EEP. Part of this effort will lead to an action plan in FY2020 —in consultation with the head of the IPP unit and EEP’s senior leaders—to build EEP’s institutional and organizational capacity. • Assist in augmenting the technical capacity of the IPP unit staff through specifically designed workshops and the regional training platform.
ET 1.5: Strengthen capacity of regulators EEA has been working with NARUC to implement the Uniform System of Accounts. EAEP will collaborate with NARUC on possible follow-up support and/or concurrent technical assistance to EEA. In addition, EAEP’s Regulatory and Tariff Specialist will work with NARUC and the AfDB on the Electricity Regulatory Index to review and assess AfDB’s gap analysis and conduct follow-on consultations. She will develop an action plan designed to provide the appropriate technical assistance to EEA that harmonizes with NARUC’s work plans for FY 2020.
ET 1.6: Strengthen capacity of private-sector partners, host-country entities, and community-based groups to promote environmentally and socially responsible power projects EAEP will ensure that environmental and social safeguards are in place to establish a good platform for engaging with developers on future projects, and that community needs are considered during project identification, feasibility analysis, and design.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-17 EAEP will hire an Ethiopian Community Engagement Advisor to ensure that the interests of utility planners, project developers, and communities remain in sync. Pending the appointment of such an advisor for Ethiopia, the Community Engagement Advisor in Kenya will engage the EEU planning team, other relevant government entities and the project leads for grid extension and utility turn- around to identify communities subject to impact under grid expansion and densification. He will also engage with known project developers to assess safeguards already being contemplated. The Advisor will be supported by an environmental specialist in identifying areas of concern—whether environmental, social, or cultural—and will begin developing resources to address them. EAEP will continue the work started under the Power Africa Community Engagement Handbook, ensuring that new deliverables provide deeper and more Ethiopia-specific contextual information that take into consideration, for example, recent ethnic tension in Oromia, security considerations in Somali Region, and other concerns raised by EEU and EEP during consultations.
Table 1: Summary of deliverables for Ethiopia Objective 1
Section of SOW ETHIOPIA Objective 1 Deliverables for FY 2019 (Bold indicates deliverables started in FY2019 for completion in FY2020)
1.1.2 Metehara Resettlement Action Plan 1.2.1 Report on the progress of the 25-year Power System Expansion program and EEP’s generation planning department’s ability to use planning tools (to continue to FY 2020) 1.2.2 Gap Analysis Report (between distribution network maps and GIS assets) (Report submission will depend upon when NRECA is able to transfer the Geospatial data to EEU.) (to continue to FY 2020) 1.3.1 Report on formation of IPP working group (representatives from Ministry of Finance and MoWie); analysis of generation pipeline with recommended priority projects (to continue to FY 2020) 1.4 Report on organizational structure of IPP units (to continue to FY 2020) 1.5 EEA Action plan (to continue to FY 2020) 1.6 Reports on communities that are subject to grid intensification, densification or activities of power utilities (to continue to FY 2020)
OBJECTIVE 2: INCREASED GRID-BASED POWER CONNECTIONS
ET 2.1: Build capacity of the EEU to install over 1 million new meters annually Under Ethiopia’s Growth and Transformation Plan (GTP), the EEU is expected to expand and modernize the distribution network to achieve universal access by 2025. This undertaking will require an aggressive electrification program for both on-grid and off-grid areas, with massive investment requirements. At present, NRECA is implementing the Ethiopia Distribution System Strengthening Project (DSSP), which is aiding the EEU in developing a geospatial planning framework. Specifically, the activities covered under this technical assistance are geospatial electrification planning, engineering analysis, financial analysis of each project, and development of a financing and impact plan for the various electrification projects for all the regions.
EAEP’s Grid Extension Lead and an Electrical/Distribution Engineer will coordinate with NRECA to ensure a seamless transition and a quick ramp-up of activities for continuous and sustained technical support to EEU. EAEP will assess different technology applications that if acquired would help EEU
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-18 to optimize the use of its geospatial platform and the database outputs that will result from the NRECA’s technical assistance.
In the course of FY2019, EAEP will undertake three activities that establish the groundwork for improving EEU’s ability to massively increase the number of installed customers during remaining years of the program: EAEP will begin early diagnostics of challenges EEU is encountering under existing meter installations, gathering early knowledge of EEU’s existing staffing structure, management oversight, and procedures currently in place for metering. EAEP will simultaneously engage the World Bank, whose Ethiopia Electrification (ELEAP) program is supporting improved electrification financially and technically. EAEP will begin building rapport with EEU metering teams critical to improved roll-out of meters and connection of new customers.
ET 2.2: Help stimulate demand for on-grid power Electrical/distribution engineer will coordinate with EEU in designing an effective action plan to connect the 3.8 million households identified under the regularization strategy of NEP 2.0.
Table 2: Summary of deliverables for Ethiopia Objective 2
Section of SOW ETHIOPIA Objective 2 Deliverables for FY 2019 2.1 Report on the review of the GIS integration of MV network and analysis of the content of the distribution network map (to continue to FY 2020) 2.2 Report on collaboration with EEU Action Plan to Connect 3.8 million customers (to continue to FY 2020).
OBJECTIVE 3: STRENGTHENED UTILITIES AND OTHER POWER SECTOR ENTITIES
ET 3.1: Implement rollout of Meter-to-Cash Program to reduce aggregate losses PATRP supported EEU with its Meter-to-Cash Program over the past two years in the South Addis Ababa Region. EAEP staff will build on and expand this support to a broader EEU service territory.
One of the largest revenue-generating territories within EEU is the newly created Addis Ababa Region (representing around 40% of total revenue for EEU). To secure the greatest impact and return on investment, EAEP will expand the existing revenue-collection and performance improvement support to the Addis Ababa Region and replicate successful projects and initiatives achieved there to other regions during later stages of the program.
Accordingly, in FY 2019, EAEP will assess EEU’s expanded territory and update the EEU turnaround plan developed under PATRP. The assessment will be undertaken by a field-focused team of three international and three local advisors with unique skills in utility management and commercialization (network/supply, revenue protection and revenue management, customer service) with backstopping from the Strengthened Utilities Lead and other STTAs.
ET 3.1.1 Energy accounting and establishment of baselines
EAEP’s Utility Advisors will coordinate with the World Bank and its team that is tasked with implementing a new Enterprise Resource Program, which will involve installing meters at all incoming and outgoing substation feeders. Energy accounting meters will allow EEU to establish a comprehensive energy account and baseline for commercial (energy) losses (other than
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-19 billing losses). To date, the only reliable baseline established has been billed versus collected revenue, and this situation will persist until metering infrastructure is fully functional. Once such infrastructure is in place, EAEP will be able to work with EEU to identify highest loss areas based on its existing energy accounting system and to prioritize them for revenue-protection interventions. EAEP anticipates this to be undertaken sometime in FY 2020, but the groundwork and preparatory work necessary to prepare EEU to take on this task will begin in FY2019.
ET 3.1.2 Know your customers
The two main pillars of successful electric distribution operations are customers and energy. Failure in either area will lead to poor performance. Driving improvements for both pillars will be the cornerstone of EAEP activities. In FY 2019, EAEP’s Utility Advisors will focus on cleaning up the customer database, beginning to develop operational processes, and training staff to improve or create:
1. Network sketching 2. Customer mapping (to feeders, distribution transformers, LV feeders) 3. A customer database, and 4. Energy balance based on feeder and distribution transformer levels
ET 3.1.3 Organizational restructuring
EAEP utility advisors will work with EEU to propose functional realignments and new job descriptions to adjust to new operational processes, particularly where restructuring regions or zones would allow field personnel to devote more time to disconnections and revenue-protection activities. The goal will be to hold field teams accountable for the energy delivered. EAEP will implement a combination of strategies that will also include the adoption of advanced technology to the extent feasible and applicable.
ET 3.1.4 Improve employee discipline
EAEP utility advisors will work with EEU to develop new employee regulations that are performance driven and emphasize greater effectiveness and efficiency. For example, effective field employees will be accountable for all the energy delivered, will ensure the meters are read properly to bill for that energy, and will disconnect consumers who are misusing electricity or not paying their bills. Efficiency metrics will be deployed to measure daily activities, such as number of meters read per day, or number of disconnections per day, among others. A monthly monitoring mechanism will be introduced that will enable the identification of worst-performing feeders and areas where attention is needed. As a result, those employees that do not meet their targets will be subject to performance measures that ensure they remain accountable for their work.
EAEP recognizes that technological solutions such as prepaid and/or smart metering are important. However, these innovations alone will not improve poorly managed utilities. Even if utilities install smart meters, astute consumers will find ways to bypass them; thus, regular monitoring by the utilities is a must. EAEP will also prepare management to institute performance plans to incentivize loss reduction and establish targets for improved performance.
ET 3.1.5 Improve processes and workload management
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-20 EEU utility advisors will propose a new commercial cycle, theft detection, and follow-up process. Well-designed commercial cycles will ensure performance management based on energy accounting and will allow the utility to have more time for other tasks.
ET 3.1.6 Improve Analytics
EAEP utility advisors will support EEU to establish a strong analytical team that will be capable of undertaking the core activities listed below, because reliable analyses are critical for work planning and performance management. All these analyses will begin in FY 2019 but will continue through successive years of the program, ensuring that these analyses remain living documents—kept up to date and improved with successive gains in staff capacity and refinements to tools and trackers. They include building the capacity of EEU to:
1. Analyze energy delivered to the regional/district/service center level 2. Prepare analyses on feeder level regarding consumption, losses, billing, collection, vending 3. Prepare analyses of daily workload: daily readings, daily bill delivery, daily disconnections 4. Prepare analyses for disconnection/reconnection 5. Prepare analyses on customer consumption profile 6. Prepare analyses on monthly performance (consumption/collection) results 7. Prepare lists of disconnections and reconnections, based on the criteria set by regional managers
ET 3.1.7 EEU Meter cleanup
Throughout the project, EAEP will support EEU in ensuring that all meters are sealed and tamper resistant. In FY 2019, EAEP will propose ways to strengthen EEU seal-control policies and mechanisms. We will also support EEU to identify obsolete or nonfunctioning meters and have them replaced, prioritizing the upgrading of meters that serve high-priority and high-value government and commercial/industrial customers. EAEP staff will also help institute measures to control meters and to ensure the connection integrity of all customers, starting with commercial and governmental customers and following with residential ones.
ET 3.1.8 Commodity support
The current meter test benches that EEU owns are only partially functional and very outdated. Based on the assessment conducted by meter test-bench experts hired by PATRP, the most viable option is replacing them with new ones. Partial functionality of meter test benches and inability to calibrate meters properly have a direct impact on the number of meters installed and their accuracy. Furthermore, EEU lacks instruments for detecting and locating sources of energy loss, further hindering their efforts to reduce losses. To support EEU to achieve its targets in increasing the number of new connections and decreasing losses, EAEP in FY 2019 will procure a portable meter test device and train EEU in their use. In FY 2020, EAEP will procure the new meter test benches. This will also deliver value to EEU and build support for further reforms.
ET 3.1.9 EEU Institutional Strengthening
EAEP staff will propose and organize formal and on-the job training for EEU staff and management. Special attention will be given to revenue-protection teams that will use information from the energy balance system to regularly inspect customers’ meters. EAEP will assist EEU to introduce revenue-
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-21 protection procedures, as well as performance evaluation procedures for employees, which will take into consideration the program’s key performance indicators (KPIs) based on the rate of billed energy and revenue amounts collected from the billed energy. EAEP will identify needs for capacity building by reviewing EEU’s ability to properly account for energy delivered and consumed, and to properly manage the process of billing and collections, and will benchmark skills against other utilities in the region with whom Power Africa has engaged.
ET 3.2: Assist EEU with the implementation of a smart-grid pilot project EAEP will support EEU in its dealings with the United States Trade and Development Agency (USTDA) contractor conducting the smart-grid feasibility study by assisting EEU to understand the requirements of the study. EAEP also will ensure that the technical assessment leads to an accurate cost estimate and financing mechanisms that feed into an overall business case for proposed smart- grid improvements.
ET 3.3: Improve performance and cost recovery of EEU in terms of reduced frequency and duration of outages Customers continue to experience outages or poor-quality supply owing mainly to system overloads and poor network maintenance. EEU currently does not maintain or keep track of a system average interruption duration or frequency index (SAIDI or SAIFI); therefore, some outages last for several days. EAEP will deploy STTA technical expertise to perform an initial assessment on current processes, identify bottlenecks in the system, and develop a training plan to use in subsequent years. This effort will lay the groundwork for future on-the-job training for technical maintenance teams in the Addis Ababa Region to identify overloads and bottlenecks in the network. In subsequent years, the team will modify and draft procedures for regular maintenance and plans for network upgrades, focusing on areas with higher consumption; and also will help EEU operationalize the existing centralized call center, which will receive information from customers on outages and other issues and will work closely with the emergency team coordination center to repair any outages in the shortest time possible. With Power Africa, EAEP will review metrics of utility performance (such as SAIDI and SAIFI) and work with Power Africa to identify reliable metrics of performance that EAEP can use for reporting and that meet USAID standards for verification and data quality. EAEP will also engage other Power Africa implementing partners to support metrics that can be employed across multiple projects.
Table 3: Summary of deliverables for Ethiopia Objective 3
Section of ETHIOPIA Objective 3 Deliverables for FY 2019 (Bold indicates deliverables SOW started in FY219 for completion in FY2020)
3.1.1 Diagnostic Report for EEU 3.1.1 Transformation Plan for EEU 3.1.2 Report on EAEP support for EEU Database Cleanup 3.1.3 Report on EEU recommended functional realignment and job descriptions 3.1.4 Report on proposed EEU performance-driven regulations to improve employee discipline
3.1.5 Report on proposed new EEU commercial cycle, theft detection and follow up process 3.1.6 Report on recommended formation of an EEU analytics team and analytics training 3.1.7 Draft EEU policy for seal control (to continue to FY 2020) 3.1.8 Procurement of portable meter test device
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-22 Section of ETHIOPIA Objective 3 Deliverables for FY 2019 (Bold indicates deliverables SOW started in FY219 for completion in FY2020)
3.1.9 Documentation of capacity building of the EEU revenue protection team 3.2 Report on the implementation of smart grid pilot project (to continue to FY 2020)
3.3 Report on EEU performance improvement and cost recovery in terms of reduced frequency and duration of outages (to continue to FY 2020)
OBJECTIVE 4: INCREASED REGIONAL POWER TRADE The World Bank is currently the largest financial and technical supporter of ongoing East Africa Power Pool (EAPP) activities, and EAEP will build on the Bank’s “operational and technical readiness” contract implemented by Tractebel to accelerate EAPP countries’ capacity to effectively engage in cross border power trade without adversely impacting the stability of their neighbors’ power grids. EAEP’s Regional Power Trade Lead and Sr. Power Pool Advisor will work closely with the EAPP Secretariat and Tractebel to coordinate activities with member utilities and build member trust. EAEP will also ensure that its activities add value to the power pool, strengthen the working relationship with the World Bank, and deliver technical services that correspond to real needs of the EAPP member countries.
ET 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading EAEP will support the implementation of Tractebel work funded by the World Bank and recommendations to get the utilities to a consistent level of operational and technical readiness. EEP has identified gaps that need to be addressed in its preparation for operational and technical readiness. Even though most of the work will fall under Tractebel’s Scope of Work, EAEP will support some of the remaining scope, which is currently under development.
ET 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading The EKT transaction is a key project for the Ethiopia government as it is central to its plans to become an energy exporter in the future and vital for acquiring foreign currency. The completion of EKT will allow for trade between Ethiopia and Kenya for an initial 200 MW, with a 400 MW end state; and future trade between Ethiopia and Tanzania in the amount of 200 MW.
• Ethiopia and Kenya transaction: Infrastructure from Ethiopia to Kenya will be commissioned in April 2020 and trading between Ethiopia and the Kenya Power and Lighting Company (KPLC) (initial 200 MW; end state 400 MW) will commence thereafter and continue for 20 years. The PPA between Ethiopia and Kenya (KPLC) has been signed. The Interconnection Agreement (IA) with Kenya, however, remains outstanding. EAEP is seeking precise information on how much support will be required to complete this agreement.
• Ethiopia and Tanzania transaction: Support for the Ethiopia and Tanzania PPA can be kick- started only after the signing of a Transmission Service Agreement (TSA) between Kenya Electricity Transmission Company Ltd. (KETRACO) and TANESCO. EAEP's Power Pool Advisor will facilitate meetings between Ethiopia and Tanzania to address the issues on the TSA. While preparatory ground activities will be initiated during FY 2019, the actual training to understand the wheeling tariff model will be done during FY 2020.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-23 ET 4.2.1: Development of standardized legal and regulatory regimes on a pilot basis EAEP will work with electricity regulators to update and harmonize their legal and regulatory frameworks, as well as national laws, to facilitate cross-border trading of surplus electricity. EAEP working with the EAPP Secretariat and the Independent Regulatory Board (IRB) will create a pilot framework that can be replicated by other member states throughout EAPP. Once the EAEP PPP advisor begins service in late FY 2019, she will liaise with each national regulator to understand preferences for continuation of the dedicated working group approach promulgated under PATRP vs individual regulatory support. EAEP will engage regulators in FY 2020 on the basis of the preferred approach, with support from NRF and Fieldstone to establish effective legal and regulatory regimes.
In the first six months, EAEP will commence analysis of the regulations, rules, and other regulatory instruments that will be required, whether involving amendments to existing or new instruments, using the previous work performed under Power Africa and working with the EAPP. An outline description of such regulatory instruments, their key terms, and key legal issues (such as remedies for any cross-border trading disputes), will be developed and circulated to the parties with the objective of agreeing upon a harmonized approach to their development.
ET 4.3: Improve regional coordination and planning at EAPP, Nile Equatorial Lakes Subsidiary Action Program (NELSAP), energy ministries, and member state electric utilities The Power Pool Advisor will interact with EAPP’s Secretariat and senior leadership to design a strategy amenable to EAPP’s leadership. Productive early talks with EAPP leadership revealed concern that support to EAPP should be channeled through the Secretariat for purposes of coordination and prioritization, and to ensure that EAPP staff are not overwhelmed by competing priorities or requests for engagement by the multitude of donors and technical assistance partners with whom they do business.
However, EAEP has suggested a model based on technical support to the Secretariat, paired with utility-level support to each utility in the power pool, to help guide them toward the technical, commercial, and operational standards required to trade power. EAEP considers moving too quickly a project risk, as it could antagonize the goodwill already earned with EAPP management. EAEP will continue to engage regularly with the Secretariat until a mechanism is found that is acceptable to EAPP and that permits our team to work effectively at the national level. In FY 2019, EAEP effort will focus on building trust and identifying EAPP’s preferred channels for collaboration which will lead to identification of specific deliverables for FY 2020. This work will focus on technical and operational support delivered through the Transmission Working Group that complements investment being delivered simultaneously by the World Bank.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-24 The following table 4 summarizes all of the tasks that will be undertaken in FY 2019 in Ethiopia, many of which will continue into FY 2020.
Table 4: Ethiopia Summary of planned assistance and time frames
ORGANIZATIONS TO BE ASSISTED FY 2019 FY 2020
OUTPUT / DELIVERABLE (ETHIOPIA)
OBJECTIVE NO. -
SUB MOWIE EEP EEU EEA MOF Q3 Q4 Q1 Q2 Q3 Q4
Deliverables for FY 2019
ET1 Objective 1: Optimized Power Supply
ET1.1 Bringing New Power Generation Capacity to Financial Close
ET1.1.2 Metehara Resettlement Action Plan ⚫ ⚫
Support the Ethiopian Government and Utilities to Improve their Power Generation, Transmission, and ET 1.2 Distribution Planning
Report on the progress of the 25-year Power System Expansion program and EEP’s ⚫ ET 1.2.1 generation planning department’s ability to use planning tools.
Gap Analysis Report (between distribution ⚫ ET1.2.2 network maps and GIS assets)
ET 1.3 Improve Legal and Regulatory Frameworks to Stimulate Private-Sector Investment
Report on formation of WG, analysis of ET 1.3.1 generation pipeline with recommended ⚫ ⚫ ⚫ priority projects
ET 1.4 Improve Capacity of Governments and Utilities to Negotiate, Produce, and Manage Power Generation and Transmission Projects
Report on organizational structure of IPP ⚫ ET 1.4 units
Strengthen Capacity of Private-Sector Partners, Host-Country Entities, and Community-Based Groups to ET 1.6 Promote Environmentally and Socially Responsible Power Projects
Reports on communities subject to grid ET 1.6 intensification, densification or activities of ⚫ power utilities
ET2 Objective 2: Increased Grid-Based Power Connections
ET 2.1 Build Capacity of EEU to Install Over 1 Million New Meters Annually
Report on the review of the GIS integration ET 2.1 of MV network and analysis of the content ⚫ of the distribution network map
ET 2.2 Help Stimulate Demand for On-Grid Power
Report on collaboration with EEU on ⚫ ET 2.2 regularization of 3.8 million customers
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-25 ORGANIZATIONS TO BE ASSISTED FY 2019 FY 2020
OUTPUT / DELIVERABLE (ETHIOPIA)
OBJECTIVE NO. -
SUB MOWIE EEP EEU EEA MOF Q3 Q4 Q1 Q2 Q3 Q4
ET3 Objective 3: Strengthened Utilities and Other Power Sector Entities
ET 3.1 Assistance to EEU: Implement Rollout of Meter-To-Cash Program to Reduce Aggregate Losses
Diagnostic Report of technical and ⚫ ET 3.1.1 commercial losses for EEU
ET 3.1.1 Transformation Plan for EEU ⚫
ET 3.1.2 Report on EAEP support for EEU Database ⚫ Cleanup
ET 3.1.3 Report on recommended functional ⚫ realignment and job description
Report on proposed performance-driven ⚫ ET 3.1.4 regulations to improve employee discipline
Report on proposed new commercial cycle, ⚫ ET 3.1.5 theft detection and follow up process
Report on recommended formation of an ⚫ ET 3.1.6 analytics team and analytics training
ET 3.1.7 Draft policy for seal control ⚫
ET 3.1.8 Procurement of portable meter test devices ⚫
ET 3.1.9 Documentation of capacity building of the ⚫ revenue protection team
ET 3.2 Assist EEU With the Implementation of a Smart-Grid Pilot Project
Report on the implementation of smart grid ET 3.2 pilot project
Improve Performance and Cost Recovery of EEU in Terms of Reduced Frequency and Duration of ET 3.3 Outages
Report on performance improvement and ET 3.3 cost recovery in terms of reduced frequency ⚫ and duration of outages
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-26 4. KENYA
PROGRAM OVERVIEW
Kenya has made tremendous progress on its national electrification strategy, having driven the access rate from 32% to 75% by 2018 through multiple initiatives such as the Last Mile Connectivity Programme. Its strong pipeline of projects that are envisaged to be operational in 2022 will be more than enough to fully meet projected energy growth and will yield capacity for export to its neighbors.
Pipeline Optimization: For FY 2019, EAEP will sustain transaction advisory services to roughly 472 MW of generation projects, which are targeted to be operational by 2022. In the near term, priority focus will be on projects that have signed power purchase agreements (PPAs) and/or near financial close (FC). While Kenya demonstrates a robust generation sector, the development of its transmission network needs to be strategically and rapidly aligned to address grid constraints that can potentially lead to stranded generating assets or limited evacuation of power. EAEP will deploy a harmonized strategy for the institutional strengthening of both KenGen and KETRACO, the power generation and transmission utilities that primarily define the country’s infrastructure readiness. EAEP will likewise collaborate with GOK in the implementation of the new Energy Act of 2019.
Grid Extension/Rural Electrification: The Kenya National Electrification Strategy (KNES) establishes the overarching policy direction to reach universal access by 2022. EAEP’s technical assistance to Kenya Power and Lighting Company (KPLC) will help it implement a least-cost pathway under its grid expansion, grid densification, and grid intensification strategies. The KNES also calls for a holistic and integrated energy sector planning between KPLC and the newly created Rural Electrification and Renewable Energy Corporation (REREC). Given the excess capacity scenario for 2022, EAEP will also assist in identifying innovative ways to increase per capita electricity consumption, which is currently estimated at approximately 180 kWh. This is slightly above the African average of 150 kWh and Kenya’s neighbors (Tanzania 100 kWh, Tunisia 146 kWh).
Strengthened Utilities: Although KPLC has a solid reputation as a market and technical leader in East Africa, it faces current and looming challenges that pose a threat to its economic standing. Significant grid expansion has adversely impacted technical and commercial losses, and now a disproportionate number of customers have low consumption levels. KPLC’s profitability has also been eroded by its inability to recover fuel cost pass-through, which was not permitted by the Energy and Petroleum Regulatory Authority (EPRA)—formerly the Energy Regulatory Commission—in 2018 and by GOK’s failure to reimburse KPLC for public-sector projects, such as street lighting and the Last Mile program. In the near term, KPLC will also need to manage the surge in off-take obligations from new independent power producers (IPPs—for solar, wind, and thermal) that have already signed PPAs with KPLC.
Power Pool/Regional Trade: The newly promulgated grid/distribution code established criteria and prescribed minimum performance standards, which comply with the minimum performance standards imposed by the Eastern Africa Power Pool (EAPP). Priority for the first few months of EAEP is the resolution of all outstanding issues that will impede the full operation of the Ethiopia– Kenya–Tanzania interconnection line. These issues include: (1) agreement on transmission capacity ratings to be used for cost allocation; (2) cost data supporting the wheeling tariff, to be identified by KETRACO; (3) a process for reviewing data to be developed; (4) a final TSA and Accession Agreement between KETRACO and KPLC; and (5) KETRACO and TANESCO to reach agreement on a final TSA, including pricing.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-27 OBJECTIVE 1: OPTIMIZED POWER SUPPLY
KE 1.1: Bringing new power generation capacity to financial close Led by EAEP’s Optimized Power Sector lead, EAEP’s transaction advisory team will focus its support, where appropriate, on a select group of late-stage development projects to help them progress to financial close (FC) and assist those projects that have reached FC progress to Commencement of Operations Date (COD). EAEP will provide transaction advisory assistance (technical, financial and legal) to the following projects:
Table 5: KenGen generation projects to receive transaction advisory assistance
NAME OF KENGEN PROJECT MW STATUS
Olkaria V 158.0 Olkaria I Unit 6 83.0 Under construction Kipeto Wind 100.0 Subtotal 341.0
Olkaria 1 Unit 1-3 redevelopment 50.7 Olkaria Modular Geothermal Power Plant I 31.75 Olkaria Modular Geothermal Power Plant II 30.0 Ngong Wind Expansion6 11.0 Working through conditions Alten Kesses Solar PV 40.0 precedent to get to FC Malindi Solar PV 40.0 Menengai - Sosian Geothermal 35.0 Menengai – Quantum Geothermal 35.0 Rupingazi Hydro 6.8 Subtotal 280.25
Total 621.25
KE 1.2: Accelerating national transmission projects
KE 1.2.1 Transaction support to KETRACO
EAEP’s KETRACO advisor will lead a team that will provide transaction support on the KETRACO’s five proposed transmission build-operate-transfer (BOT) or build-operate-lease- transfer (BOLT) projects to be developed as Public Private Partnerships (PPPs). Three of these projects are being implemented through the unsolicited Privately Initiated Investment Proposals basis (financed by the Africa50 Infrastructure Fund). The other two projects will be competitively tendered (international competitive bidding) PPP projects.
6 Installed capacity is 25MW; however, with EAEP support, capacity is expected to improve to 36MW; thus, an incremental capacity of 11MW
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-28 KE 1.2.2 Capacity Building for KETRACO on PPP to perform PPP functions.
EAEP transaction advisory team will coordinate with the African Development Bank (AfDB) to conduct the following activities, which were identified in discussion with KETRACO:
1. Risk-assessment matrix: Advice on a risk allocation that KETRACO should be ready to accept. 2. Advice on design aspects of transmission PPPs and prepare a report on aspects of PPP design for KETRACO. 3. Identification of funding options for expenses required to run a competitive process to get PPP partners: Assess options for KETRACO to fund prefeasibility activities required to get projects bid-ready (including social and environment issues and purchasing wayleaves). 4. Identification and recommendation of KETRACO’s technical requirements for Africa50 projects. 5. Review and advice on implications of the PPP template in the PPP Act of 2013. 6. Advice on PPP transmission experiences: Compare and benchmark PPP transmission precedents. KE 1.2.3 Community Engagement
EAEP will also deploy a Community Engagement Advisor to advise and assist the KETRACO personnel who are responsible for working with affected communities and landowners, including advising on compulsory land acquisition, an area fraught with difficulty in Kenya. The advisor in FY2019 will begin to develop a Local Community Engagement Framework for Transmission Projects, based on PA’s Guide to Community Engagement for Power Project Developers in Kenya, and, moving into FY2020, will support KETRACO in implementing this framework to overcome right-of-way challenges, land disputes, and local community resistance.
KE 1.3: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects KE 1.3.1 Support KenGen Horizon II Growth Strategy EAEP will support KenGen in implementing its Horizon II Growth Strategy and advancing projects in its pipeline, including IPPs. The work will include both an organizational health check, the provision of capacity building support to the KenGen PPP unit, and further capacity building to KenGen staff in technical areas key to KenGen goals and objectives:
KE 1.3.1.1 Organizational health check
EAEP will competitively procure a consulting firm to lead the organizational health check. The work will be carried out by the firm with supervision and oversight by EAEP’s KenGen advisor. EAEP will review diagnostics and proposed recommendations with KenGen and Power Africa before selecting recommendations for future project work.
KE 1.3.1.2 Capacity building of KenGen’s PPP unit
KenGen Advisor and Transaction advisor will lead the capacity building of KenGen’s PPP unit, developing bankable PPP projects, and promoting any required improvements in the PPP
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-29 framework to accelerate project progress including blended financing to advance its projects in its pipeline. EAEP’s focus will mainly be on late-stage development projects to reach financial close.
KE 1.3.1.3 Capacity building of KenGen
EAEP’s overall capacity building of KenGen will cover a) allocating and managing risks for renewable energy projects; b) tariff setting and regulation guidance and c) contract structuring, drafting, and negotiations (for various power and wheeling arrangements).
KE 1.3.2 Continuous Technical Assistance to Ministry of Energy EAEP will provide continuous technical assistance to the Ministry of Energy with the engagement of the embedded Sr. Technical Advisor to the Minister of Energy. He will primarily provide advice on key energy sector policy and regulatory reforms designed to create an enabling environment for private sector investments.
Table 6: Summary of deliverables for Kenya Objective 1
Section KENYA Objective 1 Deliverables for FY 2019 ((Bold indicates deliverables started in of SOW FY219 for completion in FY2020)
Report on the financial close of Malindi Solar power project (40 MW), Alten Kesses Solar PV (40 MW) and Rupingazi Hydro (6.8 MW)
Report on commissioning of Olkaria V geothermal power plant (158 MW)
Report on financial close of Olkaria 1 Unit 1-3 redevelopment (50.7), Olkaria Modular Geothermal power plant I (31.75 MW), Olkaria Modular Geothermal power plant II (30 MW), Ngong Wind 1.1 Expansion (11 MW), Menengai Sosian geothermal power plant (35 MW) and Menengai Quantum geothermal power plant (35 MW) – (to continue to FY 2020)
Report on commissioning of Olkaria I unit 6 (83 MW) and Kipeto Wind (100 MW) - (to continue to FY 2020) 1.2.1 Documentation of transaction advisory support to KETRACO’s five proposed transmission PPP (to continue to FY 2020) 1.2.2 Report on capacity building to KETRACO’s PPP unit (to continue to FY 2020)
1.2.3 Report on community engagement in the development and application of Local Community Engagement Framework (to continue to FY 2020) 1.3.1 Report on EAEP’s support to KenGen in implementing Horizon II Growth Strategy (to continue to FY 2020)
OBJECTIVE 2: INCREASED GRID-BASED POWER CONNECTIONS
KE 2.1: Support the implementation of Kenya’s Energy ACT 2019 KETRACO Advisor will lead the comprehensive analysis of the Kenya Energy Act 2019, which will focus on: a) defining secondary legislation that requires promulgation; b) identifying existing legislation, if any, that may need to be repealed or amended; c) coordinate with development financial institutions on areas of technical assistance with regards to the implementation of the Energy Act 2019.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-30 KE 2.2: Kenya—Assistance with the implementation of a distribution master plan KPLC’s Distribution Master Plan was developed in 2012. Over the past six years, the electrification rate has more than doubled, from roughly 30% in 2011 to over 70% in 2018. This significant growth in connections—coupled with challenges posed by the Energy Act 2019, the promulgation of the new distribution code, and Kenya’s strategic focus on rural electrification—will require an update of the existing distribution plan. This work will continue into FY2020.
Table 7: Summary of deliverables for Kenya Objective 2
Section KENYA Objective 2 Deliverables for FY 2019 (Bold indicates deliverables started in of SOW FY219 for completion in FY2020)
2.1 Report on the comprehensive analysis of the Kenya Energy Act 2019 (to continue to FY 2020).
OBJECTIVE 3: STRENGTHENED UTILITIES AND OTHER POWER SECTOR ENTITIES
KE 3.1: Kenya—Assistance to KPLC KE 3.1 Improve operational efficiencies of KPLC and achieve loss reductions EAEP will deploy two resident KPLC Loss Reduction Advisors, who will be embedded in two pilot regions (Nairobi North and South Nyanza) selected in consultation with KPLC, backstopped by the Strengthened Utilities Lead and short-term technical advisors. These regions represent a cross- section of KPLC’s customer profile in terms of customer density and demographics.
In FY 2019, the team will develop a diagnostic report and transformation plan for the pilot regions that will be used as a road map for future activities. EAEP advisors will also engage the International Finance Corporation (IFC), currently supporting technical and commercial loss-reduction efforts at KPLC, to ensure a harmonized implementation of field activities.
KE 3.1.1 Complete a diagnostic assessment of KPLC pilot regions and performance baseline
In line with our data-led approach, meaningful change management in KPLC pilot regions will require establishing a credible baseline and assessment of existing practices and processes. EAEP advisors will:
1. Examine the entire revenue management cycle to determine key parameters in order to establish a reasonably sufficient aggregate technical, commercial, and collections (ATC&C) baseline; 2. Assess revenue-protection practices and the extent to which there is an adequate internal control environment at KPLC; 3. Review current customer service practices and processes, to identify recommended improvements; 4. Examine the staffing capabilities and key human resource (HR) processes such as recruitment, training, performance evaluation, and disciplinary measures.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-31 KE 3.1.2 Design detailed transformation plans by functional area and support their implementation
Based on the diagnostic results, EAEP will develop a transformation plan that includes the recommended targets to be achieved, as well as reporting requirements. The transformation plan will be implemented in the selected pilot area to show proof of concept and to secure KPLC buy-in. As an aid to implementation, substantial change management will be integrated into the planning that will address commercial operations, customer services/customer care, human resources, revenue management, including metering, billing, and collection; revenue protection as well as and internal controls. The change-management process is expected to involve substantial business process redesign and training of staff on new processes, as well as consumer education through a communications and outreach effort, and will continue in subsequent years.
KE 3.1.3 KPLC Institutional Strengthening
EAEP staff will propose and organize formal and on-the job training. Special attention will be given to revenue-protection teams that will use information from the energy balance system to regularly inspect customers’ meters. EAEP will introduce revenue-protection procedures, as well as performance evaluation procedures for employees, which will take into consideration the program’s key performance indicators (KPIs) based on rate of billed energy and revenue amounts collected from the billed energy.
KE 3.2: Kenya—Support KPLC in the implementation of its new 2017–2023 corporate strategy Building on previous PA’ review with KPLC of its corporate strategic plan, EAEP’s turn around utility team will focus on the following work streams, which will be aligned with the fieldwork that EAEP will propose and implement within KPLC.
EAEP will support KPLC in embedding and operationalizing the PMO that includes advising on governance, project management processes, and work templates. It is anticipated that the PMO will need substantial support during the next six months. Two priority activities will be to fully budget the resources associated with each of the 30 strategic initiatives in accordance with the time frame laid out in the strategic plan; and to refine, as necessary, each business case to reflect the most up- to-date information.
In parallel, EAEP will supplement the PMO with its own experts in the implementation of the strategic plan, which will consist of: (a) planning in detail for each initiative; (b) monitoring the Key Performance Indicators; (c) conducting quality reviews of the work products being completed by the each strategic initiative’s team; (d) weekly meetings with initiative project teams; (e) reviewing progress, issues, risks, actions, and next steps; (f) managing stakeholder engagement and project communications; (g) organizing bi-weekly PMO committee meetings; (h) supporting budget updates and changes in the business cases associated with each strategic initiative; and (i) organizing the steering committee that will oversee implementation efforts.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-32 KE 3.2.3 Reengineering KPLC Business Processes
EAEP will continue its mentoring to KPLC in implementing business process reengineering for three areas: commercial cycle, procurement, and contract management. Additionally, EAEP will train KPLC on process mapping and reengineering as well as on industry standard processes to assist in a review of processes for the areas KPLC has identified as critical. The process will involve a) state “as is” assessment; b) gap analysis; c) “to be” process analysis; d) impact analysis of proposed changes; e) change management and strategy.
KE 3.2.4 Changing KPLC’s Corporate Culture
KPLC, through several important initiatives in the strategic plan, will focus on changing the company’s culture, with an emphasis on accountability, performance, integrity, and customer service. Employees will be encouraged to uphold these values and understand their respective roles in achieving the company’s objectives. EAEP will review lines of authority, improve manager communication to employees about corporate goals and expectations of employee performance in achieving them, establish improved corporate processes that establish mechanisms for accountability, and improve incentive structures for performance. In FY 2019 this process will commence with thorough review and analysis of the status quo condition. EAEP will request relevant data from KPLC, analyze it, identify anomalies, challenges, and discrepancies, and work with KPLC to create a transformation plan that will begin the process of changing the way KPLC staff do business.
KE 3.3: Improve performance (reduced frequency and duration of outages) and cost recovery of KPLC KPLC has begun implementing its 2018-2023 strategic plan, which establishes ambitious targets for quality of service and corporate financials. Essential to meeting those targets is improving grid stability and service quality, improving collections, and connecting new, paying customers. EAEP will work with KPLC to identifying key operational measures that must be implemented to ensure adequate and reliable near-term renewable integration. In FY 2019, EAEP’s KPLC advisors will establish a baseline for future interventions, collect data, and analyze existing gaps that will lay the foundation for improved performance in FY 2020 and beyond.
Table 8: Summary of deliverables for Kenya Objective 3
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-33 Section KENYA Objective 3 Deliverables for FY 2019 of SOW 3.1.1 Diagnostic Report of KPLC and performance baseline
3.1.2 Transformation Plan for KPLC
3.1.3 Training Materials and Training on Revenue Protection
3.2.2 Report on “As-is” process flow for KPLC
3.2.3 Gap Analysis for process for KPLC
3.2.4 Report on “To-Be” process flows and change management plan
3.3 Report on the reduction of frequency and duration of outages as well as cost recovery of KPLC
OBJECTIVE 4: INCREASED REGIONAL POWER TRADE
KE 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading EAEP will support the implementation of Tractebel work funded by the World Bank and recommendations to get the utilities to the same level of operational and technical readiness. KETRACO, KenGen, and KPLC have all identified gaps that need to be addressed in their preparation for operational and technical readiness. Even though most of the work will fall under Tractebel’s SOW, EAEP will support some of the outstanding scope, which is currently under development.
KE 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading KE 4.2.1 Ethiopia and Kenya transaction
Infrastructure from Ethiopia to Kenya will be commissioned in April 2020. Trading between Ethiopia and KPLC (initial 200 MW; end state 400 MW) will start in April 2020 and is planned to continue for 20 years. The Power Purchase Agreement between Ethiopia and Kenya (KPLC) has been signed. EAEP’s legal and transaction advisor together with Norton Rose Fulbright will hold discussions with legal and technical advisors of the relevant parties to define respective responsibilities in the drafting of the Interconnection Agreement with Ethiopia, which is due in December 2019.
KE 4.2.2 Kenya and Tanzania transaction
KETRACO has requested EAEP to facilitate the resumption of the negotiations with TANESCO in order to finalize the Transmission Service Agreement (TSA). The infrastructure in Kenya will be completed in April 2020 while the status of the Tanzanian infrastructure needs to be confirmed. KETRACO aims to complete negotiations by the middle of 2019. EAEP’s legal and transaction advisors based in Kenya and Tanzania will support negotiations on the TSA. EAEP Power Pool Advisor with support from the legal and transaction advisers will review all outstanding documents necessary to realize the Kenya and Tanzania cross border power trade.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-34 KE 4.3: Assist in the development and implementation of high-priority regional power infrastructure projects An important cross-border electricity trade initiative is underway but behind schedule, and EAEP will support getting it back on track to link Kenya, Rwanda, and Uganda. A new 400 kV transmission line would connect Olkaria in Kenya to Biremba in Rwanda via Uganda; Uganda and Kenya are already connected via older, existing lines. Upgrade to the new 400 kV line has been hindered by right-of- way issues, delayed contractors, and the lack of a tripartite agreement that will regulate the three- nation exchange of energy. This work will continue into FY 2020.
KE 4.4: Provide transaction advisory assistance to EKT EAEP will focus its initial transaction advisory support and funding arrangement assistance in the first contract year on advancing the development of all line segments of the EKT transmission interconnection project to achieve financial close and under-construction status for all planned line segments.
The following Table 9 summarizes all tasks anticipated to be undertaken in FY 2019 in Kenya.
Table 9: Kenya Summary of planned assistance and time frames
ORGANIZATIONS TO BE ASSISTED FY 2019 FY 2020
OUTPUT / DELIVERABLE
(KENYA)
OBJECTIVE NO. -
SUB MOE COG KENGEN KPLC KETRACO EPRA REREC Q3 Q4 Q1 Q2 Q3 Q4
KE1 Objective 1: Optimized Power Supply
KE1.1 Bringing New Power Generation Capacity to Financial Close
Report on the financial close of Malindi Solar power project (40 MW), Alten ⚫ Kesses Solar PV (40 MW) and Rupingazi Hydro (6.8 MW)
Report on commissioning of Olkaria V ⚫ geothermal power plant (158 MW)
Report on financial close of Olkaria 1 Unit 1-3 redevelopment (50.7), Olkaria KE1.1 Modular Geothermal power plant I (31.75 MW), Olkaria Modular Geothermal power plant II (30 MW), Ngong Wind Expansion (11 MW), Menengai Sosian geothermal power plant (35 MW) and Menengai Quantum geothermal power plant (35 MW) – (Activity to continue to FY 2020)
Report on commissioning of Olkaria I unit 6 (83 MW) and Kipeto Wind (100 MW) - ⚫ ⚫ (Activity to continue to FY 2020)
KE1.2 Accelerating National Transmission Projects
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-35 ORGANIZATIONS TO BE ASSISTED FY 2019 FY 2020
OUTPUT / DELIVERABLE
(KENYA)
OBJECTIVE NO. -
SUB MOE COG KENGEN KPLC KETRACO EPRA REREC Q3 Q4 Q1 Q2 Q3 Q4
Documentation of transaction advisory support to KETRACO’s five proposed ⚫ KE 1.2.1 transmission PPP (Activity to continue to FY 2020)
KE 1.2.2 Report on capacity building to KETRACO’s PPP unit (Activity to ⚫ continue to FY 2020)
KE 1.2.3 Report on community engagement in the development and application of Local ⚫ Community Engagement Framework (Activity to continue to FY 2020)
KE1.3 Improve Capacity of Governments and Utilities to Negotiate, Produce, and Manage Power Generation and Transmission Projects
KE 1.3.1 Report on EAEP’s support to KenGen in implementing Horizon II Growth Strategy ⚫ (Activity to continue to FY 2020)
KE2 Objective 2: Increased Grid-Based Power Connections
KE2.1 Support the Implementation of Kenya’s Energy ACT 2019
Report on the comprehensive analysis of KE2.1 the Kenya Energy Act 2019 (Activity to ⚫ ⚫ ⚫ ⚫ continue to FY 2020).
KE2.3 Kenya—Assistance with the Implementation of a Distribution Master Plan
Report on review of all distribution KE2.3 planning systems/software of KPLC ⚫ (Activity to continue to FY 2020)
KE3 Objective 3: Strengthened Utilities and Other Power Sector Entities
KE3.1 Assistance to KPLC: Improve Operational Efficiencies of KPLC and Achieve Loss Reductions
Diagnostic assessment of KPLC pilot ⚫ KE3.1.1 regions and performance baseline
KE3.1.2 Report on the design of the performance ⚫ improvement plans by functional areas
KE3.2 Kenya—Support KPLC in the Implementation of its New 2017–2023 Corporate Strategy
KE 3.2.1- Reports for KPLC on: a) documented as 3.2.4 is process flow, b) gap analysis, c) to be ⚫ process flows and change management plan
KE3.2 Improve Performance (reduced frequency and duration of outages) and Cost Recovery of KPLC
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-36 ORGANIZATIONS TO BE ASSISTED FY 2019 FY 2020
OUTPUT / DELIVERABLE
(KENYA)
OBJECTIVE NO. -
SUB MOE COG KENGEN KPLC KETRACO EPRA REREC Q3 Q4 Q1 Q2 Q3 Q4
Report on the reduction of frequency and duration of outages as well as cost ⚫ KE 3.2 recovery of KPLC (Activity to continue to FY 2020)
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-37 5. RWANDA
PROGRAM OVERVIEW
Rwanda is one of the fastest growing economies in the sub-Saharan region, at a rate of 7% since 2000. Its aggressive economic development plan is underpinned by an energy policy framework that seeks to achieve a 100% electricity access rate for households and productive uses by 2024, almost half of which is to come from off-grid connections. The country’s heavy reliance on hydropower production poses supply challenges during the dry-season months. Rwanda’s Energy Sector and Strategic Plan therefore seeks to diversify the country’s generation mix to include hydro, peat, methane, and solar technology.
Pipeline Optimization: The private sector serves as the lynchpin of the country’s energy production, with independent power producers (IPPs) accounting for roughly 52% of the total energy generation. Total installed capacity as of early 2019 stands at 221 MW, with peak demand placed at 130 MW. Around 136 MW of new power generation is under construction and several power projects are at various planning stages. If all these projects materialize, the country’s installed capacity will reach 536 MW by 2024/25. Even with a 15% reserve margin, Rwanda faces a looming capacity surplus beginning in 2020 when the 80 MW Hakan power plant is projected to be synchronized to the grid. However, despite the anticipated power supply surplus, there are indications that the GOR remains committed to pursuing a multipronged planning strategy of fuel diversification, creation of a healthy power supply buffer during low-hydro output, and decreased reliance on expensive imported fuel.
Grid Extension/Rural Electrification: Despite Rwanda’s strong economic performance, electricity consumption per capita remains relatively low at 54 kWh, with households contributing the broadest base of energy sales. This excess capacity is expected to balloon if productive use of energy is not scaled up immediately and if issues concerning interim cross-border power exchange are left unresolved. EAEP will explore potential opportunities for increased energy consumption by focusing on high-value and high-impact commercial and industrial activities that also support the GOR’s goals for rapid economic development.
Strengthened Utilities: The eventual overcapacity in Rwanda demonstrates the misalignment between demand and supply, largely due to the economic growth rate of 7% which, while possibly enviable relative to Rwanda’s neighbors, is slower than the aspirational economic growth of 11.5% forecasted under the Economic Development and Poverty Reduction Strategy II. The apparent shortages of planning skills and sophisticated planning tools and software undermine the viability of power projects in both the operational and development stages. In addition, the expansion, upgrade, and rehabilitation of the country’s electricity backbone has failed to keep pace with the fast growth of the generation sector, resulting in bottlenecks in the transmission lines, overloaded network equipment, and significant levels of system losses. EAEP will assess capacity building interventions to address gaps in technical expertise across the different functions.
Power Pool/Regional Trade: Cross-border power trade is a strategic productive use of Rwanda’s excess capacity beginning in 2020. The transmission corridors linking Rwanda with Uganda and Democratic Republic of the Congo (DRC) are complete or nearly so. If requested, EAEP will assist in finalizing commercial agreements and harmonizing operational technical requirements for cross border interconnections and power trade.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-38 OBJECTIVE 1: OPTIMIZED POWER SUPPLY
RW 1.1: Bringing new power generation capacity to financial close Rwanda has approximately 80 generation projects in the pipeline, but many of these will not be developed. The demand and supply analysis developed by the Power Africa Transactions and Reforms Program (PATRP) shows that the incremental capacity of the 80 MW Hakan power plant expected to come online in 2020 will tip the balance of power to a surplus, assuming an estimated growth in electricity demand of 7.6%–10%. Although Rwanda originally planned to import power in the interim from Uganda to bridge any short-term deficiency in power supply, the renewed political tension between the two countries since March 2019 has cast significant uncertainty on such cross- border power trade.
EAEP’s Rwanda Technical Advisor will spearhead a team of experts that will design a combination of activities aimed to preserve private sector confidence in Rwanda’s power sector and assist the GOR in stimulating increased capacity utilization. EAEP recognizes that unless Rwanda sees a significant spike in demand, it will be very important to fast-track Rwanda’s ability to export its excess power to its neighbors, particularly DRC to avoid incurring exorbitant changes due to “take or pay” provisions that could amount to millions of dollars of government commitments annually.
RW 1.1.1 Analysis of the impact of LCPDP implementation
The Rwanda Energy Group (REG) is implementing a least-cost power development plan (LCPDP) designed to determine the optimal generation mix needed to support increases in demand at the least cost possible. In view of this effort, EAEP will: a) evaluate the impact of the LCPDP, if any, on the list of projects currently supported by Power Africa; b) define applicable transaction advisory support for projects that are likely to be affected by the outcome of the LCPDP; and c) propose a risk management plan to manage any adverse impact that may arise, including technical assistance in reviewing financing terms and conditions with the financing institutions.
RW 1.1.2 Support to selected generation power projects
For the first year of the performance period, EAEP will prioritize support to Rwanda’s Energy Development Corporation Ltd. (EDCL) to help it advance the following IPP projects based on initial discussions with EDCL:
• Nyabarongo hydropower project (43.5 MW): Assistance in the procurement process for hiring an owner’s engineer, including specifications required for the position; and the • Symbion project (50 MW): Assistance for the EDCL/Energy Utility Corporation Ltd. (EUCL) Project Implementation Team on managing their obligations under their PPA.
EAEP will ensure that technical support aligns with EDCL requirements for engagement. The following Table 10 list additional power projects that EAEP may support in FY2020 and beyond, per their individual needs. The following table is organized by project stage.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-39 Table 10: Chronological list of projects for support under Objective 1
PROJECT NAME TECH- MW PROPOSED NEXT STEPS NOLOGY STAGE 3A – PROJECT STRUCTURING
Giciye III Hydro 11.6 Confirm status with developer
Kore Hydro 1.3 PPA negotiations under way; discussions with Rwanda Development Board
STAGE 3B - FINANCING
Bihongore Hydro 5.37 Follow-up to ensure PPA negotiations are scheduled
Kabavu Hydro 0.1 PPA negotiations underway; need to follow up
Karambo Hydro 0.726 Follow-up with developer
Kirimbi I, II, and III Hydro 1.6 Follow-up with developer
Kibu 56 Natural Gas 56 PPA and amendment signed, check finance status
Kivuwatt Phase 2 Natural Gas 75 Discuss opportunity for support with developer, given difficult negotiations Koko Hydro 4.5 Confirm status with developer
Mpenge II Hydro 0.3 Discuss opportunity for support with developer
Rucangozera Hydro 1.4 PPA negotiations underway
4A – CONDITIONS PRECEDENT
Amahoro Energy Hydro 4.5 Review impact of recent, Serious delays and confirm new FC
Ngali Energy Hydro 13 PPA to be renegotiated
Rukarara VI Hydro 6.7 Nearing FC; confirm need for further support
4B – PROJECT COMPLETION
Agatobwe Hydro 0.39 Contact developer to confirm latest anticipated Commencement of Operations (COD)
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-40 Cyimbiri Hydro 0.3 Confirm with developer that COD has been reached
PROJECT NAME TECH- MW PROPOSED NEXT STEPS NOLOGY
Keya Hydro 2.2 Confirm with developer that COD has been reached
Nkora Hydro 0.68 Confirm with developer that COD has been reached
Nyamyotsi I Hydro 0.1 Assist developer in identifying other sources of financing
Nyamotsi II Hydro 0.1 Assist developer in identifying other sources of financing
RW 1.2: Accelerating national transmission projects The EAEP Optimized Power Supply Lead, supported by Fieldstone and Norton Rose Fulbright (NRF) experts, will review the current list of transmission projects and validate the status as well as priorities for REG and EUCL. EAEP will assist in developing Scopes of Work (SOWs) for the transaction support services, assist in identifying possible financing mechanism/modalities, if needed. EAEP will regularly update the list and document the nature of the technical assistance provided in the Power Africa Tracking Tool (PATT). EAEP will focus transaction support on facilitating technical and financial agreements,
RW 1.3: Supporting the government and utilities to improve their power generation, transmission, and distribution planning RW 1.3.1 Support to the implementation of LCPDP
As discussed with REG, EAEP will assist in implementing the LCPDP. A component of this technical assistance will focus on the review and audit of existing Generation, Transmission, and Distribution master plans; and identifying areas for improvement. EAEP will conduct a rapid needs assessment with the strategic planning department to understand gaps in technical skills. The outcome of this assessment for FY2020 will define the content, depth, and form of a capacity-building package that will best match the weaknesses in the planning department.
RW 1.4: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects The IPP team at EUCL is quite new and was created out of a need to ensure consistency in and availability of dedicated personnel unencumbered by other roles and focused exclusively on structuring and negotiating IPPs. There is a strategic plan for the team and its development over the next seven years.
As REG transitions to its oversight function over the IPP team in FY 2020 and beyond, Technical Lead and EAEP’s transactions and legal reform specialist, with representatives from Norton Rose Fulbright and Fieldstone, will lead a team from various areas of expertise to begin the following tasks, which will continue through FY 2020:
1. Work with EUCL and ECDL to clarify and formalize the structure of the IPP team.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-41 2. Provide expert assistance on PPAs and concession agreements from an expert or experts on an as-needed basis covering technical, finance, legal and commercial activities. Lessons learned from PATRP show that mentoring and advice focused on different forms of PPAs and legal and finance issues as they arise will be more effective than the traditional embedded transaction advisor. 3. Conduct structured training on PPAs and concession agreements that are designed for Rwanda, in contrast to the ad hoc attendance at courses as in the past following a training needs assessment conducted by EDCL and EUCL. 4. Perform risk analysis of existing PPAs, for purposes of identifying lessons learned, which will serve as inputs into an updated PPA such as the needs of financiers for government backing where project financing is involved, or the unavailability of foreign currency. 5. Assist the Rwandan IPP team to negotiate PPAs and concession agreements, ensuring such assistance builds capacity in Rwanda. 6. Draft separate PPAs that are designed for different generation resources. 7. Elaborate guidelines for decision-makers that aid and guide decisions to approve or reject PPAs, make determinations on tariffs, etc. 8. Assist local developers to access better financing terms (Rwanda commercial bank loan rates are a high 15%–16%, which results in tariff increases).
RW 1.5: Strengthen capacity of regulators The Rwanda Utilities Regulatory Authority (RURA) performs regulatory impact analyses of PPAs that it is required to conduct under the new PPP Law before PPAs are signed, essentially reviewing the breakdown of input costs to ensure they are reasonable. EAEP is currently coordinating with NARUC as well as with other donors to determine complementation of activities related to regulators.
In response to RURA’s request, EAEP will review the draft of the captive power regulation prepared by RURA that will provide a framework permitting larger industrial customers to produce power for their own usage. EAEP will also develop with RURA a capacity-building package for FY2020 and beyond, that EAEP will tailored to fit specific needs of the agency.
Table 11: Summary of deliverables for Rwanda Objective 1
Section of RWANDA Objective 1 Deliverables for FY 2019 SOW 1.1.1 Report on the analysis of the impact of LCPDP focusing on power projects that will be affected by its implementation including recommended risk management plan (to continue to FY 2020) 1.1.2 Report on support to selected power projects: Nyabarongo power project (43.5 MW) and 1.1 Symbion power project (50 MW) (to continue to FY 2020) 1.2 Documentation of transaction advisory support to Rwanda’s selected transmission projects (to continue to FY 2020) 1.3.1 Report assessing REG’s existing master plans with focus on recommended areas for improvement (to continue to FY 2020) 1.3.2 Document on customized training package of REG (to continue to FY 2020) 1.5 Report on the review of RURA’s captive power regulation
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-42 OBJECTIVE 4: INCREASED REGIONAL POWER TRADE It is expected that the next priority region for power trade will be Uganda with Rwanda, Tanzania, Kenya, South Sudan, and DRC. This can be supported by the advanced development of transmission infrastructure across these countries.
RW 4.1: Build capacity of Eastern Africa Power Pool (EAPP) member utilities and generation companies to improve overall operational and technical readiness for power trading EAEP will support the implementation of Tractebel work funded by the World Bank and recommendations to get the utilities to the same level of operational and technical readiness. REG has identified gaps that need to be addressed in their preparation for operational and technical readiness. Even though most of the work will fall under Tractebel’s scope of work, EAEP will support some of the outstanding scope, which is under development.
Rwanda has internal technical challenges to address in parallel with trying to meet its operational and technical readiness for power trade. In the past, the network has experienced system collapses attributed to lack of appropriate equipment and the need for capacity building leading to operational inefficiencies. EAEP will work with Nexant on assessing the operational and technical readiness for power trading. Through an on-the-ground assessment conducted jointly with Nexant, Power Pool Advisor will establish a comprehensive list of equipment, with clear technical specifications and interfaces to implement the equipment in compliance with existing installations. The Advisor will be supported by the Technical Lead and Power System Planning Advisor. This list of equipment will then be shared with JICA for potential procurement.
The following table 12 summarizes all planned assistance for Rwanda in FY 2019.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-43 Table 12: Rwanda Summary of planned assistance and time frames
ORGANIZATIONS FY 2019 FY 2020 TO BE ASSISTED
OUTPUT / DELIVERABLE (RWANDA)
OBJECTIVE NO.
-
SUB REG EUCL ECDL RURA Q3 Q4 Q1 Q2 Q3 Q4
RW1.1 Bringing New Power Generation Capacity to Financial Close
Report on the review the impact of LCPDP focusing on power projects that will be affected by its RW 1.1.1 implementation including recommended risk ⚫ management plan (Activity to continue to FY 2020)
Report on support to selected power projects: RW 1.1.2 Nyabarongo power project (43.5 MW) and Symbion ⚫ power project (50 MW) (Activity to continue to FY 2020)
RW1.2 Accelerating National Transmission Projects
Documentation of transaction advisory support to Rwanda’s selected transmission projects (Activity ⚫ RW 1.2 to continue to FY 2020)
Supporting the Government and Utilities to Improve their Power Generation, Transmission, and RW1.3 Distribution Planning
RW 1.3.1 Report on the review and assessment of existing plans of REG with focus on recommended areas for ⚫ improvement of the plans (Activity to continue to FY 2020)
Document on customized training package of REG (Activity to continue to FY 2020) ⚫ RW 1.3.2
RW 1.5 Strengthen Capacity of Regulators
RW 1.5 Report on the review of RURA’s captive power ⚫ regulation
Build capacity of Eastern Africa Power Pool (EAPP) Member Utilities and Generation Companies to RW. 4.1 Improve Overall Operational and Technical Readiness for Power Trading
4.1.1 Equipment List for Operational Readiness ⚫
4.1 Equipment needs listing for operational and technical readiness (to continue to FY 2020)
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-44 6. TANZANIA
PROGRAM OVERVIEW
Tanzania is at a crossroads between alternative development pathways for its power sector and the need for continued capacity growth to handle planning, modeling, and procurement in-house. Expansion and improvement of its power sector are crucial to Tanzania achieving its goals for economic growth. EAEP’s priority for its first year of performance is to conduct a capacity needs assessment of all relevant government Tanzanian energy agencies, as may be requested, including the Energy and Water Utilities Regulatory Authority (EWURA). The outcome of the assessment will serve as the foundation for a custom-built capacity-building package for the GOT to help it achieve its power sector goals and increase private sector investment.
Pipeline Optimization. Tanzania Electric Supply Company Ltd. (TANESCO) recently conducted a prequalification process for companies to develop 950 MW of generating capacity under a build- own-operate-transfer public–private partnership. The invitation called for the development of 200 MW of wind power in Singida, Njombe, and Dodoma regions; and 150 MW of solar photovoltaic (PV) capacity in Dodoma, Singida, Shinyanga, Mwanza, Simiyu, and Iringa regions. The GOT has set a highly challenging completion target of 2020 for these projects. In addition, the GOT has also issued a tender process for the development of a 600 MW integrated coal power project, which will require superior coal technology integrated with combined cycle generating capability. EAEP will coordinate with USAID/Tanzania and keep communication channels open with GOT in order to define how EAEP can assist the GOT in achieving its generating capacity target by 2025.
Grid Extension/Rural Electrification. Tanzania reportedly has an installed customer base of 32.8% on the mainland. Tanzania’s Electricity Supply Industry Reform Strategy and Roadmap aims to reach 50% connection levels by 2025. Under Objective 2 (Grid Extension), EAEP will assist the GOT in increasing on-grid connections through a menu of technical assistance that will include support for analyzing the cost of connections, evaluating the recommendations from the SRUC output, and implementing proposed recommendations as applicable. EAEP will also prepare a gap analysis aimed at improving GIS management of distribution assets.
Strengthened Utilities. TANESCO has successfully reduced its technical and nontechnical losses from a high of 26% in 2011 to a more manageable level of 16% as of early 2019. Its existing tariff design is estimated to cover at least 70% of its cost of service. EAEP will have a better appreciation of the type and level of technical assistance that can be offered after the in-depth capacity needs assessment is completed.
Power Pool/Regional Trade. In FY 2019, EAEP will focus its efforts on jumpstarting the stalled negotiations of the Ethiopia–Kenya–Tanzania (EKT) transaction, under which Ethiopia will export 200 MW of power to Tanzania, wheeling the electricity across Kenya’s transmission lines. In addition, EWURA has shown interest in engaging with EAEP to work on issues around regional integration and power sector oversight. In FY 2019, EAEP will begin helping EWURA to finalize key agreements they require for bilateral power trade.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-45 OBJECTIVE 1: OPTIMIZED POWER SUPPLY
TZ 1.1: Bring new power generation capacity to financial close (FC) In collaboration with USAID/Tanzania and the Ministry of Energy (MoE), EAEP’s Transaction advisor and Tanzania Country Lead will compile a list of power projects that may warrant Power Africa support. The list may include the awardees under the recently concluded small power producers (SPPs) auction as well as project developers that the GOT will identify following the tender process that was conducted in late 2018. In addition, the following table is a partial list of projects that EAEP may possibly work on if requested and/or needed.
The following table lists projects that EAEP may support. All projects listed below have already been introduced into the Power Africa transaction tracker database and are already partners to Power Africa.
Table 13: Illustrative list of potentially supportable projects in Tanzania
PROJECT NAME TECHNOLOGY MW
EA Wind (EA Wind, PA partner) Wind 100
Kilwa Energy (TANESCO) Gas 320 Kinyerezi III (TANESCO) Gas 600 Malagarasi (TANESCO) Hydro 42 Masagiri (TANESCO) Hydro 70 Mtwara (Kusini Energy, PA partner) Gas 300 Shinyanga (NextGen, PA partner) Solar 150 Somanga I (TANESCO) Gas 240 Upepo Wind (Upepo, PA partner) Wind 150 Upepo Wind II (Upepo, PA partner) Wind 75 Total: 2047 MW
TZ 1.2: Accelerate national transmission projects Tanzania has embarked on an ambitious plan to provide grid access to all of its 12,268 mainland villages. Initial discussions with TANESCO’s Strategic Planning Department (a unit of the Investment Department) indicated a possible opening for EAEP transaction support on national transmission projects. EAEP will continue to meet with counterparts from TANESCO to pin down the focus of such support, which may include but not be limited to facilitating technical and financial agreements for national transmission projects through EAEP’s team of short-term technical, legal, and financial experts.
TZ 1.3: Improve capacity of governments and utilities to negotiate, produce, and manage power generation and transmission projects Using the model applied in Ethiopia, Tanzania Country Lead along with EAEP’s Institutional Performance Improvement Advisor, will conduct capacity needs assessments of all relevant government agencies, as may be requested, including the regulator EWURA. The outcome of the assessment will serve as the foundation for a well-targeted capacity-building package for the GOT. In addition, in FY 2019, Cross-Border Trade lead and representatives from Fieldstone and NRF will support a Reverse Auction Workshop organized by USEA that will be held in Morogoro, Tanzania. The workshop will improve understanding of bankability issues in PPAs, teach key negotiation
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-46 points, covering the principles behind guarantees and amendments, and lead participants through a comparative study of bankable IPP agreements.
Building on the GOT’s declared commitment to competitive procurement of energy projects, EAEP in FY2020 will further define its technical assistance with TANESCO’s Strategic Planning Department, which may include:
1. Analyzing Tanzania’s law regarding the ability of the GOT to grant guarantees to private sector infrastructure projects, including the circumstances under which Parliamentary consent is required. 2. Providing training in reverse auctions and improve the small power producer legal and regulatory framework. 3. Organizing training on government guarantees and assessing what the risks are likely from the IPP perspective, and with which party those risks lie. 4. Examining other softer forms of government support, such as comfort letters with varying degrees of commitment, use of implementation agreements (IA), which to date have not been used in Tanzania, and put/call arrangements (such as those used in Nigeria). EAEP would draw on the expertise of its personnel and Norton Rose Fulbright, as well as the human and institutional expertise within Power Africa, gained across multiple African countries. 5. Facilitating the use of partial risk guarantees, especially as International Development Association finance becomes available. 6. Offering training on the need for, and negotiation of, direct agreements (negotiated by the banks with each counterparty to an IPP to cover risks and areas of concern to the banks, but essentially to secure fundamental rights, such as the ability to step in and take over a failing project). TANESCO has had difficulties negotiating direct agreements, and at least one well- advanced project ended near to FC when the GOT refused to allow a direct agreement. 7. Evaluating issues and risks of projects financed on a nonrecourse basis.
TANESCO also requested that capacity building be provided across all relevant agencies and entities in the Tanzania power sector such as the TANESCO PPP Unit, MoE PPP Unit, and Attorney General’s Office. This will ensure that a common understanding across the government on power purchase agreement (PPAs) and associated financing requirements is developed.
In consultation with TANESCO, EAEP intends to invite EWURA to join all capacity-building activities arranged in or for other EAEP countries. EAEP will arrange to discuss with TANESCO’s Chief Legal Counsel and Company Secretary (who reports to the Attorney General) and the PPA team the exact content and structure of such trainings.
TZ 1.4: Strengthen capacity of regulators For the remaining months of FY 2019, EAEP will coordinate with NARUC and other donors, particularly with the African Development Bank, on all regulatory and tariff-related matters. The coordination will be designed to create synergy, clearly delineate focused areas for technical assistance, and lead to complementary tasks as may be mutually agreed upon.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-47 Table 14: Summary of deliverables for Tanzania Objective 1
Section of SOW Tanzania Objective 1 Deliverables for FY 2019
1.3 Rapid Diagnostic Assessment for TANESCO and EWURA
OBJECTIVE 2: INCREASED GRID-BASED POWER CONNECTIONS
TZ 2.1: Support utilities and rural electrification agencies in reducing the cost of connections1.1 and time required to connect to the grid Tanzania Country Lead supported by EAEP’s distribution team, will conduct the following activities to reduce the cost and time of connections:
1. EAEP will work with the Rural Electrification Agency (REA) in evaluating the components making up the connection cost—including up-front costs paid by end users. The analysis will help identify cost drivers, and EAEP will classify costs that can be embedded in the tariffs. This approach will reduce the up-front charges to households for connections. 2. EAEP will build on the USAID Sector Reform and Utility Commercialization (SRUC) program findings and evaluate recommended next steps. 3. The team will promote integrated procurement or bulk purchases to benefit from economies of scale.
EAEP’s distribution team of an Engineer/GIS Specialist and Distribution Engineer, will conduct a needs assessment in FY19Q4 of the GIS assets and distribution maps alignment, and prepare a report that identifies the gap between distribution network maps and GIS assets that are being used to manage the distribution network. The proposed improvements stemming from the gap analysis report will be addressed in FY 2020. EAEP’s monitoring and evaluation (M&E) team will oversee issues of data collection, verification, and management.
Table 15: Summary of deliverables for Tanzania Objective 2
Section of SOW Tanzania Objective 2 Deliverables for FY 2019
2.1 GIS Assets and Distribution Needs Assessment (to be completed in FY2020)
OBJECTIVE 4: INCREASED REGIONAL POWER TRADE 1.1 TZ 4.1: Build capacity of EAPP member utilities and generation companies to improve overall operational and technical readiness for power trading The consulting firm Tractebel, financed by the World Bank, is currently working to improve the operational and technical readiness of the East Africa Power Pool (EAPP) and its member utilities. EAEP has identified gaps in compliance-readiness related to EAPP’s Interconnection Code and will help address them, ensuring close collaboration with Tractebel and the World Bank to avoid duplication of effort.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-48 TZ 4.2: Harmonize and strengthen member state legal and regulatory frameworks to support cross-border electricity trading One of the key projects in Tanzania is cross-border transmission infrastructure such as potentially the Ethiopia–Kenya–Tanzania (EKT) transmission line project. The completion of this project will allow for trade between Ethiopia and Tanzania. An outstanding issue is the finalization of the Transmission Service Agreement (TSA) between Kenya Electricity Transmission Company Ltd. (KETRACO) and TANESCO. The TSA contains the proposed wheeling tariff for the use of the transmission network. Before further progress can be made, the negotiations between KETRACO and TANESCO will need to resume and the parties will have to reach an agreement on the wheeling rate. TANESCO has requested training to better understand the proposed wheeling rate model and cross-border energy trading in general. EAEP’s Cross-Border Trade Lead will also hold meetings with TANESCO to assess the infrastructure readiness at the cross-border points.
TZ 4.3: Improve regional coordination and planning at EAPP, Nile Equatorial Lakes Subsidiary Action Program (NELSAP), energy ministries, and member state electric utilities EAEP's Cross-Border Trade Lead will engage with Tanzanian stakeholders, particularly TANESCO, to bring members of EAPP technical committees into agreement on next steps for power trade. EAEP expects that the work being completed in support of the EKT transaction may set the stage for further agreements of a similar nature and show the value of power trade.
Table 16: Summary of deliverables for Tanzania Objective 4
Section of SOW Tanzania Objective 4 Deliverables for FY 2019
4.2 STTA Support for Reverse Auction Workshop (Fieldstone, NRF, Kombe)
4.2 Training: The Role of Interconnectors in the Energy Sector
1.1
The table on the following page summarizes all planned activities in Tanzania in FY 2019.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-49 Table 17: Tanzania Summary of planned assistance and timeframes
ORGANIZATI ON TO BE FY 2019 FY 2020 ASSISTED
OUTPUT/DELIVERABLE (TANZANIA)
OBJECTIVE NO.
-
SUB MOE TANESCO EWURA REA Q3 Q4 Q1 Q2 Q3 Q4
TZ1 Objective 1: Optimized Power Supply
TZ1.1 Bring New Power Generation Capacity to Financial Close
List of possible projects that may comprise a TZ1.1.1 Power Africa-supported project portfolio ⚫ ⚫ (Activity to continue to FY 2020)
TZ1.3 Improve Capacity of Governments and Utilities to Negotiate, Produce, and Manage Power Generation and Transmission Projects
TZ1.5.1 Report on capacity needs assessment of ⚫ ⚫ ⚫ ⚫ government agencies and regulator
Custom-built training package based on capacity TZ1.5.2 needs assessment (Activity to continue to FY ⚫ ⚫ ⚫ ⚫ 2020)
TZ2 Objective 2: Increased Grid-Based Power Connections
Support Utilities and Rural Electrification Agencies in Reducing the Cost of Connections and Time TZ2.1 Required to Connect to the Grid
TZ2.1 Report evaluating connection cost components of ⚫ REA (Activity to continue to FY 2020)
TZ2.1 Gap analysis of GIS usage for asset management (Activity to continue to FY 2020)
TZ4 Objective 4: Increased Regional Power Trade
STTA Support for Reverse Auction Workshop TZ 4.2 (Fieldstone, NRF, Kombe)
Training: The Role of Interconnectors in the TZ 4.2 Energy Sector
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-50 7. OTHER COUNTRIES AND REGIONAL WORK
UGANDA Although work in Uganda was not originally to begin until FY 2020, an immediate avenue for support to the government of Uganda was identified in FY 2019. In response, EAEP will provide a detailed analysis to help the government of Uganda advance in its restructuring and expansion of its energy sector.
BURUNDI Although technical and financial assistance to the government of Burundi is expected to be curtailed in FY 2019, an American power project developer has contacted Power Africa seeking support for improved legal agreements that would support development of a power project. EAEP will support the review and development of amended versions of the concession agreement, power purchase agreement, letter of comfort, and governmental guarantee.
SOMALIA Although EAEP has not yet started implementation in Somalia, preliminary meetings have been held predominantly focused on Strengthened Utilities (Objective 3) and Regional Power Trade (Objective 4). Representatives from USAID, World Bank and EAEP have been involved on discussions on how to start support in Somalia. Regarding Gender, there are opportunities to build the capacity of the Somali Women in Energy network, which is currently being explored. These preliminary meetings will contribute to FY2020 workplan efforts.
EAEP will officially commence its activities, starting with a scoping mission or due diligence, in Burundi and Somalia in early FY 2020.
EAEP REGIONAL ACTIVITIES EAEP regional activities in year one will be limited to the combination of support for power pool/EAPP and improved regional coordination for regional power trade. That said, EAEP recognizes that some work products arising out of activities conducted under objectives 1 through 3 (Optimized Power Supply, Grid Extension, Strengthened Utilities) will have regional importance, such as identifying lessons learned for facing land rights issues or community engagement. We will begin assembling that information for assimilation into future work products, in coordination with Power Africa.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-51 8. CROSS CUTTING ACTIVITIES
The cross-cutting activities on EAEP have been initiating on a rolling basis as appropriate staff have been identified and onboarded. This staged approach is due in part to prioritizing recruitment of the objective technical team and ensuring that EAEP expands at a rate that can enable efficient, yet quality, onboarding of new staff. As of July 2019, all the cross-cutting areas have at least one, if not two staff members supporting it. The one exception is Environment, which currently has an RTI D.C. based environmental specialist supporting via STTA- simultaneously recruitment is ongoing for the long-term position, which will be based in Kenya.
SUSTAINING INSTITUTIONAL PERFORMANCE IMPROVEMENTS Institutional Performance Improvement Advisor with support from Sr. Capacity Building Specialist, will work with host country counterparts to help ensure that systems for long-term capacity building are developed and implemented to ensure EAEP leaves a lasting impact.
CB 1: Establish Institutional Performance Capacity Building Program The capacity building unit will launch initial activities in FY 2019 to establish the EAEP Capacity Building program.
CB 1: 1.1: Rapid diagnostic assessments and scoping in core countries
The purpose of the planned diagnosis and scoping is to initiate linkages with power entities, identify completed and ongoing capacity building activities in the respective institutions, visit potential utilities training service providers and educational institutions and make preliminary decisions on availability of in-country training service providers and the facilities responsive to the needs of the project. The scoping assessment will then be preceded by discussions with objective leads to identify capacity gaps. These were noted during initial in-house diagnosis with partners, utilities and donors. EAEP will conclude rapid diagnostic and scoping assessments in three countries (Ethiopia, Kenya & Rwanda). The remaining one for Tanzania is planned for August 2019.
CB 1: 1.2: In-house workshops to define Integrated Capacity Strengthening Framework
In August of 2019, RTI Capacity Building Specialist will travel to Kenya to conduct a four-day workshop with the Institutional Performance Improvement Advisor, Sr. Capacity Building Advisor, Gender Advisor, Community Engagement Advisor, and Chief of Party. An output of this activity will be the Integrated Capacity Strengthening Framework. The workshop will enable the team to tailor assessment tools that will be used throughout the life of EAEP.
CB 1: 1.3: Development of the Training Implementation Guide
EAEP training expert will develop a training implementation guide that outlines training delivery approaches, training needs-assessments and post training assessment tools, and the process for training from conception to training completion. Such a guide will help EAEP apply a uniform and more sustainable approach to building the long-term capacity of host country counterparts that can be both measured and verified.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-52 CB 2: Launch Human and Institutional Capacity Development (HICD) at select Utilities EAEP’s approach follows USAID’s Human and Institutional Capacity (HICD) Handbook7, published in 2011, which provides a model for sustainable performance improvement. EAEP’s HICD program is systematic, measurable and participatory. EAEP will pilot the program in Kenya within FY 2019 and FY 2020.
CB 2 2.1: HICD Workshop in Kenya
EAEP will launch HICD workshop with key stakeholders from the public utilities and ministries in Kenya. In day one EAEP will provide a deeper overview of HICD to the core staff at the selected utilities; this will enable them to participate in the organization capacity assessment / gaps analysis the following day of the workshop. This then leads to a participatory session of designing the effective performance solutions and technical assistance plans. Individual training needs assessments, a mandatory self-assessment baseline tool for employees selected to join EAEP capacity development programs, will be administered via an online tool.
CB 2: 2.2: Conduct Organizational Health Check for KenGen
The team will meet with KenGen management to discuss organizational readiness and determine how to follow-up on previous Organizational Health Checks. The services of an experienced external consultant will be sought to support the organizational readiness and culture assessment, provide a report with a clear organizational health index (OHI) and recommendations for implementation. The Institutional Capacity Specialist will lead the process of identifying and contracting the work to qualified consultants.
CB 2: 2.3: Support capacity building of EEU’s IPP Unit
The Capacity building team will assist Senior Ministry Embedded Advisor and Transaction Advisor, who serve as advisors on the existing organizational structure for IPP (See Activity ET 1.4). In FY 2020, the capacity building team will augment the technical capacity of the IPP unit staff through specifically designed workshops and the regional training platform.
The table on the next page summarizes all anticipated deliverables to be developed in the course of activities designed to sustain the improved performance of partner institutions.
7 Office of Education, Bureau for Economic Growth, Agriculture, and Trade, “Human and Institutional Capacity Development Handbook: A USAID Model for Sustainable Performance Improvement.” August 2011 https://usaidlearninglab.org/sites/default/files/resource/files/HICD%20Handbook%202011%20-%2008.pdf
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-53 Table 18: Summary of deliverables for institutional strengthening
Section of SOW Institutional Strengthening Deliverables for FY 2019 CB 1.1 Rapid Diagnostics Report for Kenya, Ethiopia, Rwanda and Tanzania CB 1.2 and 1.3 Institutional Capacity Strengthening Framework and Training Implementation Guide CB 2.1 HICD Workshop (Activity to continue to FY 2020) CB 2.2 KenGen Organizational Health Check Consultancy SOW released (Report finalized in 2020) CB 2.3 Report on organizational structure of IPP units (Cross listed with ET 1.4; to be delivered in 2020)
ENVIRONMENTAL ACTIVITIES EAEP will improve the promotion of environmentally and socially responsible power projects, working with private-sector partners, host-country institutions, and community-based groups. Rather than conducting environment-related work as a stand-alone activity, EAEP will integrate environmental considerations into the project pipeline and transaction assistance, grid densification, utility turnaround, and power pool work streams for sustainability. EAEP’s Technical staff will lead the work, with supervision and oversight by home office-based Sr. Environmental Specialist and Kenyan-based Environmental Specialist, who will also provide an interface with local environmental NGOs and projects, connecting them with opportunities for power sector engagement. The Kenyan-based Environmental Specialist will commence work in September of 2019. The home office-based Sr. Environmental Specialist will finalize the Environmental Monitoring and Management Plan (EMMP) in August of 2019.
EAEP will sponsor participation by relevant power sector officials at locally sponsored events likely to improve their ability to integrate environmental considerations into their planning and infrastructure development strategies, as EAEP did in January 2019 by sending a representative of the Government of Ethiopia to the African Conference on Linear Infrastructure and Ecology in South Africa.
E 1: Coordination with environmental NGOs The COP, PACO Coordinator, and Sr. Environmental Specialist will meet with key Power Africa collaborators, such as Endangered Wildlife Trust, Birdlife, Conversation International, as well as key local NGOs working in this space to explore opportunities for joint collaboration. EAEP will develop a preliminary strategy for collaboration with these key players in Q4 of FY 2019. Mapping existing environmental NGOs and their linkages to East African energy sector projects and institutions will permit more thoughtful, creative engagement throughout EAEP, tightening the relationships among energy sector NGOs, partner utilities, and donor-funded technical assistance projects. E 2: Preliminary environmental reviews and support for EAEP activities E 2.1: Review of Environmental and Social Impact Assessment and other PATRP practices and reviews to ensure compliance (Objective 1) Sr. Environment Specialist will hold discussions with USAID Power Africa environment specialists, to determine next steps for the review of ESIA and PESRM that are currently documented in PATT.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-54 E 2.2: Review Community Level Environment concerns of grid-expansion projects (Objective 2) EAEP's Community Engagement Advisor will begin to identify community-level environmental concerns of target project sites in Kenya, as part of his work on Community Engagement activities.
E 2.3: Support Utility Turnaround through Ensuring Environmental Safeguards (Objective 3) During diagnostics undertaken by the Strengthened Utilities teams in Kenya and Ethiopia, the team will review the existing environmental safeguards and identify whether industry standard environmental policies are in place or not, or whether they are being followed.
E 3: Develop Environmental Action Plan for EAEP Kenya-based Environmental Specialist, with support from home office-based Sr. Environmental Specialist, will develop a short environmental action plan, which will include an overview of findings from any ongoing assessments and proposed activities to bridge capacity gaps; a mapping of environmental service providers and NGOs in EAEP target countries; and a proposed partnership strategy to amplify EAEP’s environmental support regionally.
Table 19: Summary of deliverables for environment Section of SOW Environment Deliverables for FY 2019 E 1-2 EAEP Environmental Monitoring and Management Plan E 1-2 EAEP Environmental Action Plan (Activity to continue to FY 2020)
COMMUNITY ENGAGEMENT EAEP has two dedicated Community Engagement Advisors, based in Kenya and Ethiopia, respectively. As of June 2019, the Ethiopian Community Engagement Advisor resigned for family reasons; while the Kenyan Community Engagement Advisor was onboarded in July 2019. EAEP is actively seeking a replacement for its Ethiopian advisor and targets placement of the new advisor in October 2019.
CE 1: PACO Coordination PACO Coordinator and Community Engagement Advisor will hold semi-regular meetings with the Power Africa Corporate and Community Engagement Advisor to develop an ongoing working relationship with her, as well as to identify key stakeholders for EAEP to engage throughout the life of the program.
CE 2: Support community level engagement for a sub-set of targeted projects for FY 2019 and FY 2020 in Kenya and Ethiopia: Community Engagement Advisor will conduct a rapid diagnostic in Kenya and Ethiopia to identify target projects that require community engagement support and modalities for that support. He will initiate linkages with power entities and identify community engagement activities in the respective institutions. Based upon these discussions, the Advisor will also identify target communities for engagement. The diagnostic will include an analysis of project stakeholders and community leadership systems. In addition, he will work with the EAEP Capacity Building team to assess the capacity of utilities to positively engage communities at the planning and implementation stages of generation and transmission and grid-expansion activities. The following tasks will start in FY 2019 and continue through FY 2020:
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-55 In Kenya 1) Meet with KenGen to follow-up on progress of community engagement workplan developed under the PATRP project. 2) Develop partnership agreement with KETRACO to support their work in reducing likelihood of disputes and grievances at the community level. This partnership agreement will take the form of a Partnership Support Letter detailing the level of engagement and expected deliverables. 3) Analyze the Energy Act of 2019 and requirements for community engagement and propose actions for their implementation. Identify those activities best implemented by other partners or donors.
In Ethiopia Follow-up on the Metahara RAP: Specifically, EAEP will review the current implementation status of RAP implementation (number of households/beneficiaries compensated; how many remaining), ensure compliance of RAP implementation against what was planned, and ensure social and economic livelihood restoration are proceeding against international norms and the standards established by the plan. EAEP will also use this opportunity to identify any best practices or any recurring difficulties that might form the basis of a learning or communication activity. A replacement community engagement advisor is anticipated for EAEP is anticipated by October 2019, the previous advisor having left in late 2019 due to family matters.
Table 20: Summary of deliverables for community engagement
Section of SOW Community Engagement Deliverables for FY 2019 1.1.2 Metehara Resettlement Action Plan
CE 2 KETRACO Partnership Support Letter CE 2 EAEP Community Engagement Action Plan (for implementation in FY2020)
CE 2 Report for Kenya and Ethiopia (Rapid Diagnostic) showing transactions that might require community engagement support and how it will be provided
GENDER EAEP will focus on increasing women’s participation in the electric power utility workforce across East Africa. FY 2019 will focus on a select number of preliminary tasks, which will serve as a foundation for FY 2020 and beyond. EAEP has a dedicated Gender Advisor based in Kenya, as well as STTA support from an RTI Gender and Energy Specialist.
G 1: Gender Gaps Analysis in four countries EAEP will develop a Gender Gaps Analysis tool that it will deploy in Kenya and Ethiopia with the utilities and regulatory authorities. A gender analysis will also be conducted in Rwanda in mid- July, and in Tanzania in mid-August. The Gaps Analysis tool assesses the number of female staff at various levels of the utility or company, and the extent to which gender inclusion is incorporated into HR policies, procedures and practices. The tool will be used to collaboratively develop a gender activity plan with each utility, designed to address the gender gaps identified. These activities aim to advance women’s role in leadership, decision making and build inclusive government energy institutions and companies through policy reform and training, which should ultimately contribute to enhancing the numbers of women working in the power sector. In Rwanda, the analysis will also include private sector energy companies and will have an expanded scope to develop a broader understanding of
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-56 the labor market for women employees in the energy sector. This work will contribute in FY 2020 to the Women in Rwanda Energy (WIRE) program.
G 2: Develop and expand networks of women in energy in target countries EAEP will support and identify local gender professionals to launch and form networks to build awareness of the needs of women in the industry, to serve as a platform for discussion and learning, and to provide support to the next generation of women in the power sector. EAEP is currently supporting the Ethiopian Women in Energy Network (EWiEN), the Women in Rwanda Energy (WIRE) and the Energy Society of Kenya to launch a gender branch. Moreover, the Gender Advisor will also engage with KenGen’s Pink Energy Forum, the institution’s platform for female empowerment and gender awareness. To support the development of a similar network in Tanzania, the EAEP Gender Advisor has set up a community of practice amongst leading women in energy across Ethiopia, Kenya and Tanzania, to support one another during the initial phases of set- up. These networks will share experiences and help establish a network for aspiring young women as well as those seeking career advancement and development.
G 3: Develop a EAEP Gender Toolkit In order for the entire team to act as ambassadors of gender integration, the Gender Advisor will develop an internal toolkit to support gender integration and representation in meetings, trainings, workshops; as well as equip the EAEP team with key gender messages that the program wants to reinforce. In year FY 2020, EAEP will expand this toolkit to focus on utilities and other partners.
Table 21: Summary of deliverables for gender
Section of SOW Gender Deliverables for FY 2019 G1 Gender Gaps Analysis in 3 countries (Tanzania, Kenya, Ethiopia) Gender Gaps Analysis in Rwanda (separated due to expanded scope of Rwanda analysis) G2 EAEP Gender toolkit (to continue into FY2020)
PACO COORDINATION PACO Coordinator joined the EAEP team in May of 2019, from Washington D.C, and transitioned to Nairobi in July of 2019. Focus activities for FY2019 for PACO coordination include developing a comprehensive matrix of development partner initiatives, other Power Africa implementation partners, stakeholders and others, with whom the project should be collaborating, coordination with, and/or communicating with on a regular basis. From the matrix, the PACO Coordinator will develop a Coordination and Collaboration Implementation Strategy (CIS), which will be used to guide the team in navigating and maintaining the rich network of partners, which EAEP can work with. The Power Africa donor mapping, and coordination/collaboration implementation strategy (CIS) will be developed as deliverables submitted with the FY 2020 workplan. In addition to providing an overview of known collaboration entry points, the CIS will include key details of donor coordination meetings and focal points, a calendar of meetings, listings of specific on-the-ground relationship managers for other Power Africa or other donor activities. Both deliverables will be “living” documents.
The table on the next page summarizes all deliverables anticipated in the course of coordination activities.
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-57 Table 22: Summary of deliverables for PACO coordination
Section of SOW PACO Coordination Deliverables for FY 2019 PACO Development Partner Coordination Mapping (Activity to continue to FY 2020) PACO Coordination and Collaboration Implementation Strategy
MONITORING, EVALUATION AND LEARNING Under the leadership of the Sr. Director of the EAEP PMU, the Monitoring, Evaluation and Learning (MEL) team currently consists of a MEL Manager based in Nairobi Kenya, a MEL Specialist (Khulisa), based in Ethiopia, short term subcontractor with Khulisa in South Africa, and RTI Senior Monitoring, Evaluation, Learning, Research and Adaptation (MERLA) specialist. The draft MEL Plan has been submitted to USAID, which includes a detailed overview of MEL for FY 2019. Key activities for this period include revising the MEL Plan, finalizing indicators and the performance indicator reference sheets (PIRS), establishing baseline data and supporting annual reporting. Additionally, the MEL team will work with Sr. Director of PMU and the entire EAEP team to define a learning agenda for the program.
Table 23: Summary of deliverables for Monitoring, Evaluation, and Learning
Section of SOW MEL Deliverables for FY 2019 MEL Monitoring, Evaluation and Learning Plan MEL Baseline Figures Documented MEL MEL Database and Reporting Tools (Activity to be continued in FY2020)
COMMUNICATIONS This team is focusing on developing EAEP communications products, such as success stories, factsheets, project briefs, and presentations. They will actively identify and report project successes, effectively engage stakeholders and develop high quality communications and outreach products that support EAEP’s objectives. The Communications team of EAEP consists of a Director of Communications, Communications and Event Coordinator, and Home Office Communications Specialist.
In FY 2019, EAEP Communications team will focus on communicating the Program’s purposes, scope and goals to gain buy-in from counterparts essential for driving change in the energy sector. The team will focus on developing templates and processes for communications. For example, the team has developed an internal process for sourcing information from the team for weekly and monthly reports, which are submitted to USAID.
Table 24: Summary of deliverables for communications
Section of SOW Communications Deliverables for FY 2019 Comms Branding and Marking Plan Comms Progress Report and Annual Report Comms Communications Strategy and Action Plan (Activity to continue to FY 2020)
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-58 Table 25: Cross-cutting Summary of planned deliverables and timeframes
FY 2019 FY 2020
ASSISTED 2 3 4 Objective Objective
- OUTPUT/DELIVERABLE Q1 Q Q Q Q1 Q2 Q3 Q4 Sub No. ORGANIZATION BETO
CAPACITY BUILDING
CB 1.1 Rapid Diagnostics Report for Kenya, Ethiopia, Rwanda and Tanzania
CB 1.2 Institutional Capacity Strengthening Framework / 1.3 and Training Implementation Guide
CB 2.1 HICD Workshop (A read-out of the workshop will KPLC, occur in 2019, the HIC Report and Plan for Kenya KenGen, will be finalized FY2020) Ketraco, EPRA
CB 2.2 KenGen Organizational Health Check Consultancy KenGen SOW released (Report finalized in 2020)
CB 2.3 Report on organizational structure of IPP units EEP (Cross listed with ET 1.4; to be delivered in 2020)
ENVIRONMENT
E1-2 EAEP Environmental Monitoring and Management Plan
E1-2 EAEP Environmental Action Plan (to be finalized in EWT, early FY2020) Birdlife Int’l
COMMUNITY ENGAGEMENT
1.1.2 Metehara Resettlement Action Plan EEP/MOF
CE2 KETRACO Partnership Support Letter KETRACO
CE2 EAEP Community Engagement Action Plan (for implementation in FY2020) GENDER G1 Gender Gaps Analysis in 3 countries (Tanzania, Kenya, Ethiopia)
G1 Gender Gaps Analysis in Rwanda (separated due to expanded scope of Rwanda analysis)
G2 EAEP Gender toolkit
PACO COORDINATION
PACO Development Partner Coordination Mapping (continuing into FY2020)
PACO Coordination and Collaboration Implementation Strategy
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-59 FY 2019 FY 2020
ASSISTED 2 3 4 Objective Objective
- OUTPUT/DELIVERABLE Q1 Q Q Q Q1 Q2 Q3 Q4 Sub No. ORGANIZATION BETO
MONITORING, EVALUATION, AND LEARNING
MEL Monitoring, Evaluation and Learning Plan
MEL Baseline Assessments (inclusive of Gender Gaps Analysis, HICD, Diagnostic Assessments, and mini- surveys)
MEL MEL Database and Reporting Tools
COMMUNICATIONS
Comm Branding and Marking Plan
Comm Progress Reports and Annual Report
Comms Communications Strategy and Action Plan
USAID.GOV/POWERAFRICA EAEP WORK PLAN FY 2019 | A-60