NIGERIA POWER SECTOR PROGRAM QUARTERLY PROGRESS REPORT (FY20Q1) October 1, 2019 – December 31, 2019
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NIGERIA POWER SECTOR PROGRAM QUARTERLY PROGRESS REPORT (FY20Q1) October 1, 2019 – December 31, 2019 DISCLAIMER: Deloitte Consulting LLP prepared this publication for review by the United States Agency for International Development. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. NIGERIA POWER SECTOR PROGRAM QUARTERLY PROGRESS REPORT (FY20Q1) IDIQ Contract No. 720-674-18-D-00003 Power Africa Expansion Task Order No. 720-674-18-F-00003 Nigeria Power Sector Program (NPSP) USAID | Southern Africa Contracting Officer’s Representative: David Rogers Submitted: 15 January 2020 Comments Received: 18 January 2020 Resubmitted: 29 January 2020 ACKNOWLEDGEMENT: Deloitte Consulting LLP produced this document for review by the United States Agency for International Development. It was prepared under Task Order No. 01: The Nigeria Power Sector Reform Program (the “Task Order”) of the Power Africa Indefinite Delivery, Indefinite Quantity (“IDIQ”) Contract No. 720-674-18-D-00003 implemented by Deloitte Consulting LLP. Cover photo: The 7.1 MW Solar-Hybrid Power Plant at Bayero University in Kano, the largest plant of its kind in Africa, commissioned by the PA-NPSP–supported Rural Electrification Agency. Photo: Rural Electrification Agency. TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................................. 1 INTRODUCTION ............................................................................................................................................................ 6 RESULTS BY TECHNICAL AREA ................................................................................................................................. 9 Energy Resources: Gas Supply (Outcome 1) ......................................................................................................... 9 On-Grid Generation (Outcome 1) ......................................................................................................................... 11 Off-Grid (Outcome 2) ............................................................................................................................................... 14 Transmission (Outcome 3) ....................................................................................................................................... 19 Distribution (Outcome 4) ......................................................................................................................................... 21 Enabling Environment (Outcome 3) ....................................................................................................................... 23 PROJECT MANAGEMENT OFFICE ........................................................................................................................... 28 Partnerships, Alliances, and Coordination ............................................................................................................ 28 Communications and Outreach .............................................................................................................................. 29 Gender and Social Inclusion ..................................................................................................................................... 30 Environmental Compliance and Social Impact ..................................................................................................... 31 Program Results Management .................................................................................................................................. 31 FINANCE AND OPERATIONS OFFICE .................................................................................................................. 35 Finance ........................................................................................................................................................................... 35 Operations .................................................................................................................................................................... 35 APPENDICES .................................................................................................................................................................... 37 Appendix A: PA-NPSP Organigram and Staffing .................................................................................................. 37 Appendix B: PA-NPSP Quarterly Financial Report ............................................................................................. 40 Appendix C: PA-NPSP Performance Indicator Tracker .................................................................................... 41 Appendix D: PA-NPSP Transaction Tracker ........................................................................................................ 45 Appendix E: PA-NPSP Deliverable Tracker .......................................................................................................... 47 Appendix F: PA-NPSP Event Tracker ..................................................................................................................... 49 TABLES Table 1: PA-NPSP Selected Targets and Results (FY20Q1) .................................................................................... 1 Table 2: Summary of Key Performance Indicator Results (FY20 to date) ......................................................... 31 Table 3: Legacy PATRP and PA-NPSP Transactions and Status ........................................................................... 33 FIGURES Figure 1: FY20Q1 Key Results ........................................................................................................................................ 1 Figure 2: Summary of import duty exemption process .......................................................................................... 15 Figure 3: Categories of distributors for SHS partnership within Nigerian market .......................................... 15 Figure 4: Segmentation of the various types of payment service providers available in Nigeria .................. 16 Figure 5: Technical due diligence process .................................................................................................................. 17 PA-NPSP QUARTERLY PROGRESS REPORT (FY20Q1) i ACRONYMS Acronym Definition AfDB African Development Bank ATC&C Aggregated Technical Commercial and Collection BPE Bureau of Public Enterprises DISCOs Distribution Companies DQA Data Quality Assessment EEI Energizing Economies Initiative EMMP Environmental Mitigation and Monitoring Plan FGN Federal Government of Nigeria IDIQ Indefinite Delivery/Indefinite Quantity IRP Integrated Resource Planning MAP Metering Asset Providers MAS Mini-Grid Acceleration Scheme MCR Market, Competition, and Rates Unit (NERC) ME&L Monitoring, Evaluation, and Learning MW Megawatts MYTO Multi-Year Tariff Order NBET Nigerian Bulk Electricity Trading Company NDPHC Niger Delta Power Holding Company NEC National Economic Council NEP Nigerian Electrification Program NERC Nigerian Electricity Regulatory Commission NESP Nigerian Energy Support Program NGFCP Nigerian Gas Flare Commercialization Program PA-NPSP Power Africa Nigeria Power Sector Program PATRP Power Africa Transactions and Reforms Program PATT Power Africa Transaction Tracker PHED Port Harcourt Electricity Distribution Company PIU Project Implementation Unit PPI Presidential Power Initiative PPP Public-Private Partnership REA Rural Electrification Agency REAN Renewable Energy Association of Nigeria REF Rural Electrification Fund (Division of REA) SAEP Southern Africa Energy Program SHS Solar Home System SIEE Supplemental Initial Environmental Examination TCN Transmission Company of Nigeria USAID United States Agency for International Development USG United States Government WAAW Working to Advance Science and Technology Education for African Women WAEP West Africa Energy Program VBA Visual Basic for Applications codes PA-NPSP QUARTERLY PROGRESS REPORT (FY20Q1) ii EXECUTIVE SUMMARY PA-NPSP QUARTERLY PROGRESS REPORT (FY20Q1) 0 EXECUTIVE SUMMARY PROGRAM OVERVIEW Deloitte Consulting LLP was awarded the U.S. Agency for International Development (USAID) Power Africa Nigeria Power Sector Program (PA- NPSP) under Task Order No. 01 of the Power Africa Indefinite Delivery, Indefinite Quantity (IDIQ) Contract No. 720-674-18-D-00003. PA-NPSP is a five-year program with a period of performance from April 2, 2018, to March 31, 2023. The PA-NPSP Quarterly Report for Year 2 Quarter 1 of the program sets out significant developments and achievements from 1 October 2019 through 31 December 2019 in U.S. Government Fiscal Year 2020, Quarter 1 (FY20Q1). PA-NPSP is the signature initiative of Power Africa in Nigeria. Coordinated by USAID, Power Africa is a U.S. government-led partnership that brings together the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa. Power Africa’s goal is to add more than 30,000 megawatts (MW) of new electricity generation capacity and connect 60 million new homes and businesses to power by 2030. PA-NPSP promotes Power Africa aims by working to increase electricity Figure 1 : FY20Q1 Key Results availability, access, and reliability throughout Nigeria, measuring progress across four outcomes: • Outcome