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Electrification Sustainability Program in South Sudan (ESP) Cooperative Agreement No

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Electrification Sustainability Program in South Sudan (ESP) Cooperative Agreement No Electrification Sustainability Program In South Sudan (ESP) Cooperative Agreement No. AID-668-A-12-00002 FY 2013 Year-End Report (Including Quarterly Report Information) October 1 – September 30, 2013 (July 1 – September 30) NRECA International Ltd. October 31, 2013 Electrification Sustainability Program In South Sudan (ESP) Year-End Report - FY 2013 Contents List of Terms and Acronyms ........................................................................................... iii Executive Summary .......................................................................................................... 1 Background ....................................................................................................................... 1 Year Number One – FY 2013 ............................................................................................ 1 Objective – Task #1 – Technical and Financial Sustainability Support .......................... 2 Objective – Task #2 – Yei and Maridi Micro-Hydro Hybrid Generation Capacity ......... 3 Objective – Task #3 – Utility Evaluation and Development Support for Yambio ........... 4 Program Results and Achievements - Monitoring and Evaluation .................................. 5 Year in Review – Activity / Task Summary ...................................................................... 6 Project Mobilization ...................................................................................................... 6 Benchmark Diagnostics ................................................................................................. 6 Financial Evaluation of KAPECO and MECO ............................................................... 7 Task I – Technical and Financial Sustainability Support for Kapoeta, Maridi and Yei Electric Utilities ................................................................................................................ 8 Customer Information System (CIS) and Accounting Workshops/Mentoring Activity ... 8 Limitations in CIS / Accounting Training .................................................................... 10 Board Training ............................................................................................................ 11 Management Training Workshop ................................................................................ 12 Lineman Training and Mentoring Activity .................................................................. 13 Power Generator Training and Mentoring Activity ...................................................... 16 Inventory Management, Physical Count of Material and Procurement Network ........... 18 Utility Operations Report ............................................................................................ 19 Daily Technical Assistance and Mentoring .................................................................. 20 Task II – Yei, Maridi Hybrid Micro-Hydro Capacity ....................................................... 21 Task III - Utility Evaluation and Development Support for Yambio ................................ 22 Other ESP Support Activities .......................................................................................... 23 Reimbursement Payments to Utilities .......................................................................... 23 Participation in USAID Activities ............................................................................... 23 Early Departure of Deputy Chief of Party .................................................................... 24 Hiring of Project Accountant / Administrative Assistant .............................................. 24 Commercial Customer Survey in Maridi ..................................................................... 24 Selection of New General Manager at YECO .............................................................. 25 Meeting with USAID FARM Project Chief of Party .................................................... 25 Meeting with Ministry Officials .................................................................................. 25 Transfer of Utility Plant Assets.................................................................................... 25 Year in Review - Key Issues and Challenges ................................................................... 27 Reorganization of South Sudan’s Government ............................................................ 27 Logistics ......................................................................................................................... 28 Strained Relations Between Yei County Commissioner and YECO Officials .............. 29 Barriers to Increase Service Connections ..................................................................... 29 Shortage of Materials Restricts the Three Utilities in Connecting New Customers. ...... 30 i Electrification Sustainability Program In South Sudan (ESP) Year-End Report - FY 2013 Networking of Computers ........................................................................................... 30 Missing Funds at KAPECO ......................................................................................... 30 KAPECO and MECO Employee Contract and Wage Issue .......................................... 31 Major Events – Upcoming Activity in Year Two ............................................................. 31 Project Team ................................................................................................................... 32 Financial ......................................................................................................................... 33 Process Indicators ........................................................................................................... 35 Output Indicators ............................................................................................................ 37 Outcome Indicators ......................................................................................................... 39 Impact Indicators ............................................................................................................ 41 ESP Project Gantt Chart .................................................................................................. 42 Success Story – Kapoeta Electric Company..................................................................... 43 ii Electrification Sustainability Program In South Sudan (ESP) Year-End Report - FY 2013 List of Terms and Acronyms AO Agreement Officer AOR Agreement Officer Representative CES Central Equatoria State CIS Customer Information System COP Chief of Party DCOP Deputy Chief of Party ECMP-3 Electronic Module Component Panel-Model 3 ECS Episcopal Church of Sudan EES Eastern Equatoria State EOI Expression of Interest ESP Electrification Sustainability Program JICA Japan International Cooperation Agency RSS Republic of Southern Sudan KAPECO Kapoeta Electric Company LBG The Louis Berger Group MECO Maridi Electric Company MOU Memorandum of Understanding NGOs Non-Government Organizations NRECA National Rural Electric Cooperative Association SSREP South Sudan Rural Electrification Project SISP Sudan Infrastructure Service Project SUWASA Sustainable Water and Sanitation in Africa UNMISS UN Mission in South Sudan USAID United States Agency for International Development VSS Veterans Security Services WES Western Equatorial State YECO Yei Electric Cooperative iii Electrification Sustainability Program In South Sudan (ESP) Year-End Report - FY 2013 Executive Summary Background Since 2005, the U.S. Government has provided ongoing infrastructure and institutional support to strengthen power sector planning throughout South Sudan, and to initiate or improve electric service delivery in Kapoeta, Maridi, Yei and Juba. Under the South Sudan Rural Electrification Project, USAID financed design and construction of a small generation-distribution utility in Yei that has evolved into a self-sustaining municipal electric cooperative serving approximately 1,200 consumers. Thereafter, USAID financed construction of two additional market town electrification projects in Kapoeta and Maridi; these two systems began commercial operations in April, 2011 and serve approximately 500 customers – households, commercial enterprises, public institutions and NGOs – in each community. The challenges these small utilities face are similar but not identical. In the case of Yei, the utility commercializes enough electrical energy to cover all operating expenses and has managed to finance corrective and preventative maintenance costs for the past four years. However, the staff turnover has been high, collection of payment for services remains a challenge and management still requires support to achieve long-term institutional and financial sustainability. The two nascent utilities in Kapoeta and Maridi have not yet connected enough consumers nor do they sell enough electricity to achieve financial sustainability. The cost of generated energy is quite high, house wiring costs are still high, and there simply has not been enough time to connect enough consumers and increase sales to reach a break-even point between operating costs and revenues. In both cases, there is also a need for ongoing training and mentoring for the boards of directors, the management, and employees who work at both utilities. On August 7, 2012 the United States Department for International Development (USAID) signed a three-year Cooperative Agreement establishing the Electrification
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