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SUMMARY

Designation Page

Programme of congress 3

Activity reports

- Activity report Study Committee N°1 : 7Operation, Maintenance, Development and Integration of Power Systems

- Activity report Study Committee N°2 : Rural Electrification 13

- Activity report Study Committee N°3 : Customer Management 22- Activity report Study Committee N°4 : 30

Energy Efficiency and Development of Renewable Energies- Activity report Study Committee N°5 : 37

Financing and Restructuring of African Power sector- Activity report Study Committee N°6 : 45

Competitiveness of Human Resources of Member Companies of the Union

2

DRAFT PROGRAMMESUNDAY 27 MAY 2012

09:00 – 18:00 REGISTRATION OF DELEGATES

PRE-CONGRESS: MONDAY 28 MAY 2012

09:00-12:00: EXECUTIVE COMMITTEE MEETING (members only)12:30 - 14:30: Lunch15:00 - 16:30: GENERAL ASSEMBY MEETING 18:00 - 21:00: Welcome cocktail and opening of the exhibition

Welcome speech of the CEO of STEG (Tunisia) Country dances Official opening of the exhibition by the Tunisian Minister in charge of energy Cocktail

DAY 1 : TUESDAY 29 MAY 2012

09:00 - 10:30: OPENING CEREMONY Master of ceremonies - STEG (Tunisia)

Welcome remarks of the CEO of STEG (Tunisia) Introduction of delegations by the Secretary General of UPDEA Thanks to the President of UPDEA by the Secretary General of UPDEA Address by the UPDEA President, Mr. Edward NJOROGE Handing over the torch to the new President of UPDEA Messages by International guest Organisations Opening speech by HE Mohamed Lamine CHAKARI, Tunisian Minister for Industry and Commerce.

10:30 - 11:00: Coffee-break and visit of exhibition by Guests of honour

11:00-12:30: SESSION 1: Conference from AfDB/AUC (Workshop) Speakers: To be appointed by AfDB and AUCChairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointed

Theme: New regional and national agenda of the AfDB in the power sector aimed at power pools and utilities: discussions on the roll-out of PIDA in the energy sector, findings of recent ICA studies on the assessment of power pools, IPP, etc.

12:30 - 14:00: Lunch

Room HANNIBAL

14:00-16:00: SESSION 2A: Technique and InfrastructuresChairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointedPresentations Sub-theme N°1: Renewable Energies (wind, solar energy, hydraulics, biomass, geothermal) and Sustainable Development: institutional, technical and financial aspects

- The solar water-heater and electricity auto generation by photovoltaic solar energy by Mr Laroussi Chebbi and Mr Hamroun, STEG, Tunisia.

- Institutional aspects related to renewable energies in Algeria by Mr Amar Abdoun and Mr Abdelkader Chabane, SONELGAZ, Algeria.

- Facilitating the connection of renewable generation to the grid by Mr Wolfgang Bohmer, Eskom, South Africa.

Presentations sub-theme N° 2: Development of interconnections of power networks: regional interconnection factor in Africa

- Development of interconnections: the case of STEG by Mr Dammak, STEG, Tunisia. - Assets, Exchanges balance sheet and Perspectives of Côte d’Ivoire by Mr Vanié Bi Tiécoura et Mr Kouassi Léon Paul,

SOPIE, Côte d’Ivoire.

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17th UPDEA CONGRESS

HAMMAMET (Tunisia) 28-31 MAY 2012

MEDINA

- Developing Africa’s energy potential and integrating power supply systems for sustainable development in African countries (case of NIGER) by Mr Yacouba Tahirou, NIGELEC, Niger.

Exchanges

16:00 - 16:15 Coffee-break

16:15-18:00 SESSION 2A cnt’d: Technique et InfrastructuresChairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointedPresentations sub-theme N° 5: Improvement in the management of electrical infrastructures for a better performance of African power utilities

- The management of electrical facilities, quality of supply and energy efficiency: the experience of STEG by Mr Hélal et Mr Daghfous, STEG, Tunisia.

- Electricity Distribution losses reduction by Mrs Moussaoui and Mrs Azzoug, SONELGAZ, Algeria.- Failure analysis of GridCo substation transformer to enhance maintenance performance by Mr Benjamin Taylor, GridCo,

Ghana.- How to exercise a positive influence on humans and on the environment to improve the achievements of the DPE? By Mr

Siaka Bakayoko, CIE, Côte d’Ivoire.- Improvement in the management of electrical infrastructures for a better performance of African power utilities by M Cheik Ka,

SENELEC, Senegal.- Distribution network reliability optimization modeling and the development of appropriate network performance targets for

Eskom Distribution by Mr Carter-Brown and Mr Théo Kleynhans, Eskom, South Africa.

Exchanges

Amphitheatre CESAR

14:00-16:00: SESSION 2B: Management and FinancingChairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointedPresentations Sub-theme N° 3: Electrification programmes for a better access to electricity, social and economic development factor

- Rural Electrification end Economic Development: the experience of STEG by Mr Amar and Mr Korked, STEG, Tunisia.- Rural Electrification in Algeria: experience and socio-economic impact by Mrs Hamza , SONELGAZ, Algeria. - Socio-economic impact of Rural Electrification: case of Morocco by M. Abdessamad Saddouq, ONE, Morocco.- Protection of the Poor through the implementation of the Social Electricity Tariffs: the South African Experience by Mrs S. D.

Salvoldi, Eskom, South Africa.- Social Marketing (Behaviour Change): A new weapon in the War against Electricity by M Maboe Maphaka, Eskom, South

Africa.- Universal Access to electricity – the experience of Ghana by M Adjetey, Energy Directorate, Ministry of Energy, Ghana.

Exchanges


16:15-18:00 SESSION 2B cnt’d: Management and Financing Chairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointedPresentations Sub-theme N° 4: Financing mechanisms of power projects in Africa

- Financing mechanisms: the experience of STEG by Mr Amar and Mejri, STEG Tunisia.- Financing Sonelgaz Group projects by Ms Nour and Mr Choual, SONELGAZ, Algeria.- Financing mechanisms of power projects, analysis and prospects by Mr Thierry Patient Bendima, ENERCA, Central Africa. - Regional Initiative for Sustainable Energy: Presentation of the funding mechanism of the UEMOA, for the implementation of its

regional strategy of development power supply by Mrs Safiétou Diallo, SENELEC, Senegal.

Presentations Sub-theme N° 6: Human Resources and development of the African skills in the power sector – south - south cooperation

- The Human Resources management at STEG by M Mbarek Khammassi, STEG, Tunisia.- Human Resources and development of the African skills in the power sector – south - south cooperation by Mr Alex Amissah,

GridCo, Ghana. - Human Resources and development of the African skills in the power sector – south - south cooperation by Mr Amadou Kane,

SENELEC, Senegal.

Exchanges

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Room (to be determined)

14:00-16:00: SESSION 2C: Infrastructure Management and Technological Innovations Chairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointed

- Presentations from African Regional power pools (COMELEC, WAPP, PEAC, SAPP, EAPP).- Environmental best practices towards green energy production through harnessing renewable natural resources (wind and

solar) for sustainable development – VRA’s institutional arrangements by Mr Emmanuel Amekor, VRA, Ghana.- How to launch renewable energies in Senegal by Mr Moustapha Baïdy Bä, SENELEC, Senegal.- Mitigating GHGs with Solar Power in Africa by Mr Mamadou Diarra, Mr Ming Yang and Mr Robert Dixon, NIGELEC, Niger.

Echanges


16:15-18:00: SESSION 2C cnt’d: Infrastructure Management and Technological Innovations Chairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointed

- Presentation from ABB. - Presentation from SAFT (Batteries).- Presentation from WEC Egypt.- Presentation from KenGen.- Wheeling charges in the framework of the integration of electric markets by Mrs Naouel Guendour, SONELGAZ, Algeria.- Development of an efficient power system database by Mr William Amuna, VRA, Ghana.- Improvement in the management of electrical infrastructures for a better performance of African power utilities by M Serge

Louis Dethié Cissé, SENELEC, Senegal.

18:00 END OF THE DAY

DAY 2: WEDNESDAY 30 MAY 2012

09:00 -10:30: SESSION 3: Forum of sponsors and RoundtableTheme of the roundtable: The development of access to electricity and south- south cooperationModerator: Mr. Edward Njoroge, CEO KenGen and outgoing President of UPDEAPanelists: M Ben Mosbah, M Baba Moussa, M Joseph Makoju, M Mihiret Debebe, M David Bile, M Yves Muyange

Exchanges

10:30-10:45 Coffee-break

10 :45-12 :30 SESSION 4 : Rapport des Comités d’Etudes Chairperson: To be appointed Rapporteurs: 1 - To be appointed 2 - To be appointedReport of Study Committees SC1 –Operation, Maintenance, Development and Integration of Power Systems SC 2- Rural Electrification SC 3 –Costumer Management SC 4 – Energy Efficiency and Development of Renewable Energies SC 5- Financing and Restructuring of the African Power Sector SC 6- Competitiveness of the Human Resources of the Member Companies of the Union

Contribution of AFSEC

Exchanges

12:30-14:30 – Lunch

16:30 -17:30: CLOSING CEREMONY General Report of the from the Rapporteur General

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Resolutions of the General Assembly Vote of thanks by the Secretary General of UPDEA Speech of the incoming President of UPDEA Closing speech by HE Mr Elyès FAKHFAKH, Tunisian Minister for Tourism

20:00 Gala Diner

Post-congress activities TUESDAY 31 MAY 2012 Sight seeing Technical visits Departure of delegates

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Report of Study Committee N°1

Operation, Maintenance, Development and Integration of

Power Systems

FINAL REPORT

7

1. INTRODUCTION

A final meeting of Coordinators, vice Coordinators and rapporteurs of the various committees was held in Tunis from 20th to 22nd February to finalize the activities of the various committees.

Supported by members from STEG namely Ghannouchi Assaad and Boujomaa Issam the Coordinator of the Study Committee N°1 (Operation, Maintenance Development and Integration of Power Systems) Mr. Johnson Hlordjie of VRA,Ghana harmonized, drafted and finalized the report as follows;

AGENDA

1) Review of the themes of Committee No, 1.for the period 2008- 20112) Writing and Summary of the Work Group Reports

Confirmation and Identification of invited members present;

Utility Country

1) VRA (Coordinator) Ghana2) STEG (Members) Tunisia

The following utilities were absent;

Utility Country

1) SNEL (Rapporteur) Dem.Rep.of Congo2) PHCN(Vice Rapporteur) Nigeria3) CIE (Vice Coordinator) Cote d’Ivoire.

2. THEMES

The themes chosen by the Study Committee No. 1 were as follows;

1) Performance Indicators for High Voltage Transmission Lines (more than 50kV). CIE was in charge.

2) Maintenance Policy for Transformers. ESKORM was in charge.3) Maintenance Policy on Circuit Breakers. STEG was in charge.4) Maintenance Policy on High Voltage Transmission Lines. CEB was in charge.

Board of the Study Committee

Coordinator : VRA – Ghana Vice Coordinator : CIE – Côte d’Ivoire Rapporteur : SNEL – RDC

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Vice Rapporteur : PHCN – Nigeria

3. ATTENDANCE OF UTILITIES

Utilities attendances to meetings for the period 2008-2011 were as follows;

UTILITYMEETING Attendance

RateSC Tunis Workshop Durban

Workshop Abidjan SC Lomé SC

MombasaSTEG X X X X 80%SBEE X X X 60%VRA X X 40%CIE X X X X X 100%ESKOM X X X X 80%CEB X X X X 80%KENGEN X 20%ONE X X 40%EDEL X 20%NAMPOWER X X 40%ENERCA X X X 60%SNEL X 20%PHCN X 20%ENEKPLCNAWEC X 20%NIGELEC X X 40%SONICHAR X 20%GRIDCo X X 40%CEET X X X 60%SONELGAZ X X X 60%

4. STATUS OF WORK DONE

Reports that were received from the various groups and countries as outlined above were harmonized and Status of Implementation of the 2008-2011 Program after this meeting was as follows;.

Themes Percentage of ImplementationNo. 1 Performance Indicators Methodology—100%

Data Collection-100%Drafting of Summary Report- 100%

No. 2 Transformer Maintenance Methodology-100%Data Collection-100%Drafting of Summary Report- 100%

No. 3 Circuit Breaker Maintenance

Methodology-100%Data Collection-100%Drafting of Summary Report- 100%

No4.Power Line Maintenance Methodology-100%

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Data Collection-100%Drafting of Summary Report- 100%

Summary

The table above shows extent to which the various themes were achieved.

Theme No.1: Performance Indicators for High Voltage Transmission Lines (Above 50kV)

All data has been collected. The following Indicators were discussed and maintained;

Non Transmitted Energy, No. of outages HV lines/100km, Permanent Outages, Rate of Failure of Protections, Rate of outage of Transformers, System Minutes (outage duration) < 1, System Minutes (outage duration) >1, SAIRI-average time taken to restore supply interruption, Automatic Frequency Load Settings (AFLS), maximum and minimum voltage level deviations. Percentage loss in transmission line per 100km; frequency deviation index, voltage deviation index.

In all these considerations, experiences from the various groups were discussed and the best practices chosen as standards to be bench marked to International standards. Utilities are to use the same formula in calculating the performance Indicators and must work towards achieving best International practices.

Theme No.2: Transformer Maintenance Policy

• Comprises inspections complying with technical instructions from Operation and Maintenance manuals requirements• It is carried out by substation personnel• It is scheduled on electronic database and done weekly, monthly, quarterly and annually.

All manufacturers recommend maintenance at least once per year for their transformers.

Over age transformers may require maintenance more than once per year.

Transformer oil analysis should be done every three years (refer to the next).

For new transformers, the first oil analysis should be done after one year to confirm oil properties, after final hand over and acceptance by the client.

Periodicity of tap changer maintenance will depend on the type of tap changer as follows:

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a) For MR type (M, MS, D), ACEC type RR et CGE type CLR 100 the period is once in 6 years or after 70000 operations.

b) For MR type H the period is once in 6years or after 50000 operations

The procedure for the short term maintenance of all types of transformer tap changers and all other components of the transformer summarized below has been covered.

The procedure for the short term maintenance of all types of transformer tap changers and all other components of the transformer summarized below has been covered.

The report also covers the medium and long term maintenance of the above components on the transformers.

Theme No.3: Circuit Breaker Maintenance Policy

Inspection and Preventive Maintenance.

Where applicable, inspection and maintenance of the circuit breakers, follows the same procedure as that of the transformers. Such as checking for leaks, gasket defects, time of closure, etc. These cover only Sulfur Hexafluoride (SF6) transformers, since most utilities have done away with the Oil Circuit breaker Transformers. Daily, weekly checks on components and SF6 pressures are as important as monthly, annual and long term checks.

Theme No.4: Line Maintenance Policy

With the rapid improvement in technology, utilities are to take advantage of this to implore very efficient methods of maintenance and installation of devices to mitigate against the devastating effects of Birds, animals, vegetation, lightning, bird streamers, climate on Grids. The following areas were covered:

1. Definitions of terms used2. Common Transmission Line Maintenance Practices

a. Annual Inspections of Linesb. Inspections Reportc. Repair of the Lines (Preventive and Corrective)

3. Tools and Test Equipment required for maintenance of transmission lines4. Safety of Test Equipment and Personnel5. Best Practice Checklists

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5. CONCLUSION

Continuity and commitment of members still pose a problem to the committee. The UPDEA secretariat has been advised to write a strong worded letter to Managing Directors and Chief Executives of Utility companies and appealing to Utilities to show commitment by assisting members to attend meetings as scheduled and avoid changing members often. In arriving at a definite performance indicator for utilitiesin UPDEA, the committee looked at the performances of various committees and picked the best practices which were then used as the performance indicators for African Utilities. The average recommended values are therefore proposed in our final document. Learning experiences from other countries through discussions and interactions was a very important gain for members because of increase in knowledge and better appreciation of problems in the power sector Most of the member countries have similar problems and lessons were learnt on how they went about those problems and hence importation of knowledge was achieved.

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Rural Electrification

FINAL REPORT

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1. INTRODUCTION

Africa has a population of one billion people, including 600 million people who have no access to electricity and, consequently, no access to modern life and the comfort of electric power. Despite the good intentions expressed either by the governments of African countries, or by donors and world organizations, Africa remains underserved in electrical power.

Indeed, in most African countries, the overall electrification rate is of 40% and around 10% in rural areas.

Overall electrification rate in Africa : 40% Rural electrification rate in Africa : 15% 33 countries record a rate that is <10% Electrification rate in Northern Africa : 97% Electrification rate in Southern Africa : 55% The rest of African countries : 4 to 30%

2. THEMES

In order to help improve this situation and, on the occasion of the first meeting of UPDEA’s Scientific Committee, held in Tunis in October 2008, the development of the following themes was assigned to Study Committee N°2.

1. Assessment, planning and standardization - ESKOM 2. Evaluation of rural electrification structures in Africa - STEG 3. Rural electrification techniques: normalization and standardization adapted to the

African context - ONE 4 Rural electrification project financing arrangement - STEG.

Board of the Study Committee

Coordinator: STEG - Tunisia Vice-Coordinator: ONE - Morocco Rapporteur: SONELEC GAZ - Algeria Vice-rapporteur: ZESCO, Zambia

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3. ATTENDANCE OF THE UTILITIES

To carry out its work, the second Study Committee held the following meetings:

1) October 2008, in Tunis, on the occasion of the Scientific Committee meeting. 2) March 17-19, 2009, in Durban, on the occasion of the Scientific Committee meeting. 3) February 18-19, 2010, in Tunis, at the Study Committee meeting. 4) October 27-29, 2010, on the occasion of the Scientific Committee meeting. 5) July 4-6, 2011, in Mombasa, on the occasion of the Scientific Committee meeting. 6) February 20-22, 2012, on the occasion of the Scientific Committee board

meeting.

UTILITY

MEETINGAttendance RateSC of

TunisWorkshop of Durban

Workshop of Tunis

SC of Lomé

SC of Mombasa

AMADER X 20 %

CEET X 20 %

ENE X 20 %

ESKOM X X X X X 100 %

GECOL X 20 %

KPLC X 20 %

NANMPOWER X X 40 %

ONE X X X 60 %

SBEE X X X 60 %

SNE X X 40 %

SNEL X 20 %

SONELGAZ X X X 60 %

SOPIE X 20 %

STEG X X X X 80 %

VALMONT X X 40 %

ZESCO X 20 %

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4. STATUS OF THE WORK DONE

Theme 1 : Assessment of Rural Electrification Structures in Africa

This theme which was presented by STEG highlights the following major results:

Existing rural electrification structures identified in African countries:

integrated companies; rural electrification agencies; distributors; local communities. State Department.

Experience shared has shown that improving electricity access rate does not depend exclusively on the structure responsible for rural electrification. However, for countries that have opted for a structure that is specialized in Rural Electrification Program Implementation (AER), ensuring coordination between the said structure and other stakeholders remains a weak point.

Theme 2: Assessment, planning and standardization

This theme was developed by ESKOM South Africa which compiled a document entitled "DRAFT DOCUMENT: SERVICE STANDARDS AND QUALITY TO BE CONSIDERED FOR PLANNING AND DESIGNING RURAL ELECTRIFICATION SYSTEMS."

This document is a guide to:

Assessing electrification constraints regarding the number of connections, the geographical location of demand, living standards measurement of dependent population and the techniques to be applied for customers' satisfaction.

Designing electrical networks using standard topologies and equipment.

The aim is to put a rigorous focus on investment costs adequacy by promoting basic infrastructure establishment at competitive costs and offering satisfactory service quality and this, through designing systems that, during the useful life of works:

a) meet customer expectations; b) meet the minimum quality standards and/or regulatory requirements; c) are reliable, sustainable and likely to be maintained in the long term.

It should be noted that this document was prepared according to realities prevailing in South Africa and that it is to be adapted to each country.

This document highlights:

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topology and equipment standardization; rural electrification project management and implementation process; business plan preparation in conformity with a comprehensive multi-year rural

electrification project; service quality provided to clients and their measurement tools; demand assessment policy; work design policy; technical and economic assessment.

Themes 3 and 4: Rural Electrification Techniques: Standardization Adapted to the African Context + Rural Electrification Project F inancing Facility

a) Tunisian Rural Electrification Experience:

In 1973, half of the Tunisian population lived in rural areas and the electrification rate in these areas was around 6%. And this prevailed despite the fact that rural electrification has always been prioritized in the country’s development plans.

To address this problem and better the situation, and also, to ensure the optimization of resources earmarked for electrification, STEG conducted a technical Audit of its electricity distribution system, in 1974, in collaboration with foreign (Belgian and Canadian) consulting firms.

This Audit enabled a critical analysis of the entire Tunisian distribution system and to conduct a comparative study on a 300 rural electrification project panel. This helped highlight the technical and economic advantage of using the MALT distribution system, compared to the system used at the time, namely the three-phase one known as the European system.

Indeed, the MALT system that is used in Northern America (United States and Canada) and in Australia, that are rich but very large countries, ensures the distribution of three-phase power and allows cost optimization through the introduction in rural areas of one-phase power distribution and SWER (single wire earth return). This allowed reaching a 35% profit rate or so in investment costs, depending on the region to be electrified.

In addition to this profit on investment cost, the introduction of one-phase power distribution in rural areas is well-suited to the needs of rural households, easy to implement, easy to maintain and has great operating flexibility.

Given the above advantages, the adoption of the MALT system has positively contributed to accelerate the pace of electrification in the country through reducing costs and construction times, which favored donor consent, including the AfDB, which funded

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most the program, by granting 06 loans, at the rate of one loan per five-year development plan.

This program was 80% funded by the State through AfDB loans (45%); the remaining funding is divided between STEG and beneficiaries, a situation which helped raise, in three decades, rural electrification rate in Tunisia from 6% in 1976 to more than 99% in 2009.

Determining Factors Success in Rural Electrification Projects

1) Commitment of Public Authorities:

Strategic choice made by the Tunisian government focused on the integrated development of the country’s rural areas.

2) System and technical choices:

Decision made in January 1976: Adoption of the four-wire and three-phase system with effective neutral MV grounding, known as the MALT system. It allows a one-phase distribution without using any isolation transformer.

3) Adoption of an integrated organization

4) Choice of a decentralized management

5) Actors of the electrification project:

Ministry of Finance and Development; Local authorities; Donors; STEG.

6) Funding:

Rural electrification programs in Tunisia were financed as follows:

10% by STEG; 10% by beneficiaries; 80% by the State subdivided as follows: up to 35% using its own funds and 45%

through AfDB loans.

b) Moroccan Rural Electrification Experience:

Rural electrification efforts made prior to 1994 have yielded mixed results. Indeed, during the two phases of the National Rural Electrification Program (PNER), the rural world was electrified at a rate of 50 villages per year on an average. As a result, only up to 18% of the rural population had access to electricity at the end of 1995.

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Taking into account past experience and in order to accelerate the Global Rural Electrification Program (PERG) was implemented. This program is comprehensive at several levels:

First, PERG’s objective is the total electrification of rural households (territorial dimension).

Moreover, it integrates all electrification techniques (technical dimension). It uses not only the connection to the national grid but also to renewable energy without neglecting diesel generators.

Finally, it brings together all financial resources likely to be raised for rural electrification (financial dimension).

SCALABLE MASTER PLAN

ONE has opted for a rolling plan based on the cost per household criterion through PERG equalization: PERG financed the cheapest start-up investment, related to villages that clustered near the grid before serving households that were increasingly dispersed and far from the connecting network.

ONE had to identify all the needs. A prospecting campaign was launched in 1996 to survey the demographic and technical characteristics of all non-electrified villages.

A database on villages enabled to assess infrastructure needs, including low and medium voltage lines and connecting lines.

It was also an opportunity for ONE to introduce a geographical information system (GIS) in order to plan the geographical development of networks and to update the database of surveyed villages. This database includes more than 40 000 villages.

TECHNICAL APPROACH

The networks developed under PERG are low and medium voltage (LV and MV) ones. The later one ensures the distribution of power over vast territories. In villages, the transformation of average medium and low-power voltage is ensured by "top of post" (H61) transformer stations. The most commonly used technique is the connection to the three-phase network, also called, the Three-phase.

IMPLEMENTATION PROCESS

Given the fact that the program is massive and the deadlines are tight, it was decided to entrust the implementation of electrification works to private companies approved by ONE and selected through competitive bidding.

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Though site supervision remained the responsibility of ONE, it was completely decentralized to regional services.

TRADE-RELATED ACCOMPANYING MEASURES

All trade-related accompanying measures implemented in place under PERG aimed at:

- stimulating the adhesion of concerned actors (beneficiary households, approved electrical contractors, village associations ......);

- overcoming the constraints that hinder the subscription of households and non-domestic users;

- Improving the image of decentralized electrification (solar electrification in particular) often regarded as a temporary electrification mode.

Since the launching of PERG, the subscription rate (the actual number of subscribers/the number of electrified and powered up households) has significantly increased. On average it was around 73%.

To achieve this result, an action plan was implemented after identifying field constraints.

This action plan focuses, inter alia, on communication outreach actions: promoting rural electrification in villages and informing the population about its various aspects (steps to follow for subscription, security and energy management).

This approach enabled ONE to communicate directly with its target customers and to consolidate the confidence of the population. It also allowed households to prepare financially and to promote true public interest.

5. RECOMMENDATIONS OF THE COMMITTEE

1) Committing and involving public authorities in implementing rural electrification projects;

2) Choosing a distribution technology that helps reduce rural electrification project costs;

3) Adopting an integrated organizational system; 4) Choosing a management style that is focused on the total decentralization of

management and rural electrification project implementation monitoring; 5) Establishing a structure exclusively dedicated to the management and

supervision of rural electrification activity; 6) Developing the rural electrification program management procedure; 7) Involving all partners (local communities, State Department, citizens, structure in

charge of the program); 8) Building capacities and implementation means. 9) Ownership of the guide by member companies

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10) Choosing the systems and technical solutions for the development of rural electrification networks;

11) Preparing electrical materials’ technical specifications and their dissemination to all stakeholders;

12) Preparing and updating a power distribution technical guideline; 13) Developing and updating a medium-term master plan for medium voltage grids; 14) Mastering MV and LV network planning:

a. procuring computational tools; b. training engineers and technicians on these tools.

15) Standardizing MV and LV networks taking as reference the technical ratios of international standard, adapting them to the specificities of each country.

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Customer Management

FINAL REPORT

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1. INTRODUCTION

Noting that, in the field of sales, African Electricity Companies had many shortcomings, the Study Committee on Customer Management was set up during the 12 th UPDEA Congress, in Algiers, in June 1996.

For the last fifteen years, the Committee has been working on many trade-related themes and has published several reports.

2. THEMES

After the first meeting of the Scientific Committee held in Tunis (Tunisia), the Customer Management Study Committee was tasked to reflect on the topics below for the period 2008 - 2011:

THEME 1: Strategy to control non-technical losses:

The objective of this theme is to offer practical solutions that could serve as a "Benchmarking" to other African power utilities.

THEME 2: Using ICTs to improve customer management:

Offer proven solutions from different companies and make a data bank of experience, and also follow the technological monitoring in this area.

Conference:

Theme of the conference: “Reduction of non-technical losses and customer service: Experience from African utilities for a better service”

Facilitation Cluster of the Study Committee

The cluster that facilitated the activities of the committee for the three years is as follows:

• one coordinator represented by CIE (Côte d’Ivoire);• one deputy coordinator represented by VRA (Ghana);• one rapporteur represented by STEG (Tunisia);• one deputy rapporteur represented by the SNE (Congo);• two work group leaders represented by:

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o SNEL (Democratic Congo);o SA Eskom (South Africa);


Facilitation Cluster

Function

Tunis15 to 17 October

2008

Durban17 to 20

March 2009

Tunis18 to 19 Februar

y 2010

Lomé27 to 29 Octobe

r2010

Mombasa04 to 06

July2011 Attendance

rate%

CIE (Côte d’Ivoire) Coordinator X X X X X 100%VRA (Ghana) Vice-

CoordinatorX X X X X 100%

STEG (Tunisia) Rapporteur X X 40%

SNE (Congo) Vice-Rapporteur

X X X X X 100%

SNEL (Democratic Congo)

Group Leader 1

X X 40%

ESKOM (RSA) Group Leader 2

X X X X 80%

Participating companiesENE (Angola) Member X X 40%

SBEE (Benin) Member X X X X X 100%

SONABEL (Burkina Faso)

Member X 20%

VALMONT(France) Member X 20%

DESTA POWER (South Africa)

Member X 20%

GECOL (Libya) Member X 20%

ENERCA (Central Africa)

Member X X X X 80%

KLPC (Kenya) Member X X 40%

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SENELEC (Senegal) Member X X 20%

CEET (Togo) Member X 10%

KenGen (Kenya) Member X X 20%

INOVA (Côte d’Ivoire) Member X 10%

GRIDCO (Ghana) Member X 10%

SONELGAZ (Algeria)

Member X X X 60%

ZESCO (Zambia) Member X 10%

EDEL -EP (Angola) Member X 10%

TOTAL OF UTILITIES 14 10 13 7 7

The average attendance rate in the facilitation cluster is 92%. The attendance rate of STEG’s Rapporteur (Rapporteur) and of SNEL’s (group leader 1) was low during the three (3) year mandate (attendance: 40%)

The other members who participated in the study committee recorded the following rates:

• 100% SBEE (Benin)• 80% for ENERCA (RCA)• 60% for SONELGAZ (Algeria),• 40% for ENE (Angola)• The other members (KenGen, CEET, SENELEC, GECOL, GRIDCO, EDEL-EP, DESTA-POWER, ZESCO, VALMONT and INOVA) participated at least once.

4. STATUS OF THE WORK DONE

25

Methodology to implement the program

The method implemented during the period consisted of the organization of meetings planned in accordance with the Scientific Committee and e-mail exchanges between member groups.

The meetings held during the period are the following: Tunis (Tunisia): 15 to 17 October 2008 Durban (South Africa): 17 to 20 March 2009 Tunis (Tunisia): 18 to 19 February 2010 Lomé (Togo): 27 to 29 October 2010 Mombasa (Kenya): 4 to 6 July 2011

The dates listed above include the regular meetings of the Study Committee and of the Scientific Committee.

Challenges

The major challenges during this mandate were the following:

• The weak functioning of work groups. Although a work process was developed since the first meeting in Tunis, no group was able to abide by it. Unfortunately, that procedure could not improve the situation. This had a significant incidence on the preparation of the final report.

• SNEL (DRC) that was appointed as Leader of Group 1 and STEG (Tunisia) as Study Committee Rapporteur could not actually discharge their duties because they were regularly absent from the various meetings. SNE (Congo - Brazzaville) ultimately took over as Rapporteur during the mandate.

• The conference which was expected to enable the development of a “feedback on experience” catalogue related to two mandate themes of the mandate could not be held.

Achievements

Despite the difficulties mentioned earlier, the following paragraphs provide the different recommendations on the topics dealt with.

26

Theme "Non-technical loss reduction»

It should be noted that the theme "Strategy against non-technical losses" had already been covered and published by the Scientific Committee. The attached document related to this theme offers some case studies from some company experience feedbacks.

The prerequisite for a strategy against non-technical losses is the willingness and commitment the utility management. In other words, the management’s responsibility should really be involved. They have to:

• clearly define their policy and strategy in the "fight against the non-technical losses" areas;

• roll out this policy to all customer management collaborators;• develop all procedures and work instructions related to the afore-mentioned

themes, roll them out and ensure their effective implementation by means of periodic reviews.

Recommendations

Considering that the fight against non-technical losses is a vital process for the company and noting the increasing yoke of non-technical losses on companies, especially those due to fraud, we recommend the following:

1. Putting structured a country-wide addressing in place (identification of streets, avenues, houses, etc.) It must be the concern of the General Directorates of utilities to bring this issue to a state level.

2. Developing software that integrates securing counting, customer consumption analysis and equipment control.

3. Developing a simple and friendly customer management software.4. Training staff to fight against non-technical losses.5. Refusing to outsource the reading of meters to external structures and

introducing the principle of contradictory statements on certain delivery points.6. Dealing effectively with “meter reading” activity reports.7. Installing meters at the HV/MV supply source substations, inter-directions meters

and, even inter-sales office.8. Organizing periodic inventories of electrical meters.9. Building up employee accountability at critical points in the process.10 Implementing an appropriate regulatory and legal mechanism to fight against non-technical losses.

27

11. Affirming the commitment of the Management by putting operational structures in place to fight against non-technical losses.

12. Sensitizing widely users and company officials about the risks incurred.13. Adopting the main strategies for reducing non-technical losses including the following actions:

• launching frequent audits and winning local communities’ and other stakeholders support;

• removing illegal connections on a frequent basis;• not condoning any fraudulent action from the staff and subcontractors;• replacing faulty or rigged meters so as to prevent electricity supply without

payment;• initiating all processes to ensure the prosecution of recalcitrant offenders,

including seeking the support of political and judicial authorities;• reducing illegal connection temptation caused by the presence of non-

electrified neighbouring areas, by electrifying all residential districts;• providing continuing education for all staff, sales agents and subcontractors

on the company’s policy including the protocols to be respected;• dealing effectively with reports on low consumptions;• introducing new technologies such as automatic meter reading and smart

metering devices (remote meter reading and remote management, etc.).

Theme "Using ICTs to improve customer management"

Considering that power utilities are permanently concerned with continuous service quality improvement and that the contribution of ICTs enables to achieve this objective, we recommend the following:

1. The installation of smart meters, with the possibility for the customer to have a certain number of services (device remote control), and the possibility for the distributor to keep track of the customer’s consumption.

2. Diversification of payment modes thanks to the following:• online power purchase for prepaid meters;• bill payment:

via Internet; via mobile phones; via landline phones; via bank ATMs; via cash dispensers; via banks and post office counters.

28

3 Using GIS (Geographic Information System) to locate customers.4. Reducing billing claims by using remote reading.5. Developing Remote Services (requests, claims, breakdown, information, satisfaction surveys, etc.)

Conference on "Non-Technical Loss Reduction and Customer Service: Experience from African Power Companies for a better service"

The conference - which was intended to be a forum for sharing experience and knowledge on non-technical loss reduction strategy, and improving customer service based on the use of ICTs - could not take place.It was to allow each company to present:

• the practical solutions implemented on the ground;• the results obtained;• the implementation methodology; • the conditions for a successful implementation of each of the solutions

presented.

We exceptionally recommend that this symposium be rescheduled at the beginning of the next mandate of Study Committee N° 3

Publications or study reports to be published

The following two themes that were discussed for the 2008-2011 period and mentioned in the annexed report may be published. The said reports are on:

Strategies against non-technical losses; Using ICTs to improve customer management.

Prospects in the business sector of the Study Committee

The future challenge of the Study Committee on Customer Management’s is linked to the following theme: "Issues and possible solutions related to consumption reading, government and rural area bill recovery"

29


Energy Efficiency and Development of Renewable

Energies

FINAL REPORT

30

1. INTRODUCTION

Set up in June 2009 during the Nairobi Congress (KENYA), the main mission of Study Committee N°4 on Energy Efficiency and Renewable Energies was to further the promotion of new forms of energy and the development of energy efficiency in the countries of UPDEA members.

This new strategic guidance of power utilities stemmed from high pressure by soaring fossil fuel prices and their impact on electricity generation costs in African countries. Hence, UPDEA member countries’ will to ensure better energy security while maintaining an environment-friendly impact.

To start the work of this Committee, power utilities listed straightaway a set of diverse and complementary themes to cover, as quickly as possible, the fundamental issues related to the development of renewable energies and energy efficiency. These themes were justified by the significant delay in the development of renewable energies and energy efficiency in all African countries, with the exception of a few ones.

The issues to be addressed were the institutional and regulatory aspects as well as technical ones related to technology.

2. THEMES

- THEME 1: INSTITUTIONAL AND REGULATORY FRAMEWORK- THEME 2: SOLAR, THERMAL, PHOTOVOLTAIC TECHNIQUES: TECHNOLOGIES AND ADVANCED TECHNIQUES, AND THEIR COSTS- THEME 3: WIND POWER TECHNIQUES: ADVANCED TECHNIQUES AND TECHNOLOGIES, AND THEIR COSTS - THEME 4: IMPROVING EFFICIENCY IN THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICAL POWER- THEME 5: CERTIFICATION OF DOMESTIC APPLIANCES AND ENERGY-SAVING LAMPS

31


UTILITY

MEETING Attendance Rate (%)

Study Committee (SC) in

Tunis(October

2008)

Durban Workshop

(March, 2009)

Nairobi Workshop

(November 2009)

SC in Lomé

(October2010)

SC in Mombasa

(June 2011)

ESKOM (South Africa)

√ √ √ √ √ 100

VRA (Ghana) √ √ √ 60KENGEN (Kenya) √ √ √ 60EDEL (Angola) √ √ 40SBEE (Benin) √ √ √ √ √ 100NIGELEC (Niger) √ √ As of October

2010Senelec (Senegal) √ √ √ √ 80ONE (Morocco) √ √ 40STEG (Tunisie) √ √ 40CEET (Togo) √ √ 40GECOL (Libya) √ 20AFSEC (African Union)PHCN (Nigeria) √ 20


THEME 1: Institutional and Regulatory Framework

This theme was entirely addressed. The focus was on preparing a good practice guide for developing an institutional and regulatory framework for UPDEA member countries targeting both renewable energies and energy efficiency.

Moreover, a draft African protocol for developing renewable energies and energy efficiency in was submitted. This treaty shall be signed by all UPDEA member countries in order to urge them to implement, in their respective countries, a policy for promoting renewable energies and energy efficiency.

These two documents are complementary and may serve as materials towards the harmonious development of an institutional framework for renewable energies and energy efficiency in Africa.

They will enable to attract private investments and to promote the sharing of energy resources and experience between different countries.

Study Committee N°4 submits this document to UPDEA member countries and the African Union for validation during the May 2012 congress in Tunis.

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THEME 2: Solar, thermal, photovoltaic techniques: advanced technologies and techniques, and their costs

This topic was discussed during a presentation by SNEL and SIAME in Nairobi. These presentations focused on solar, photovoltaic and thermal technologies.

Both presentations focused on the low outputs of these plants (11-25%) compared to conventional technologies, and the large areas needed for their construction (1 to 2 hectares per installed MW).

However, an emphasis was put on African countries’ potential in terms of solar energy and the contribution of these technologies to energy independence.

Besides, the learning effect and large-scale development are likely to reduce medium and long term costs so as to promote the introduction of these technologies in our countries.

THEME 3: Wind power techniques: advanced technologies and techniques, and their costs

Although important power projects are conducted in Tunisia, Morocco, Egypt and Cape Verde, the Committee did not discuss wind power generating techniques.

However, the Committee recommends to the countries having substantial wind resource to explore this technique owing to the significant costs reduction and technological advances of this sector.

The Committee also recommends that power utilities use computational tools such as WAsP and RETSCREEN to conduct technical and economic feasibility studies.

The intermittency-related technical aspects and the capacities to integrate them into the transmission network require preliminary studies to ensure network stability and thus define the exploitable wind power potential.

Similarly, African countries have every interest in designing wind atlases in order to predefine sites ready for the development of wind energy.

THEME 4: IMPROVING EFFICIENCY IN POWER GENERATION, TRANSMISSION AND DISTRIBUTION

This theme was not addressed by ESKOM.

THEME 5: CERTIFICATION OF DOMESTIC APPLIANCES AND ENERGY-SAVING LAMPS

33

As regards this theme, Ghana and Tunisia presented the standards applied in both countries to household appliances (refrigerators, air conditioners, energy-saving lamps). UPDEA member countries and AFREC may take advantage of these standards to certify equipment across their countries or the African continent.

The harmonization of these standards is very important for industrial development and for the development of a market across the continent.

AFSEC could take ownership of these documents in order to establish a common African standard.

5. CONCLUSIONS AND RECOMMENDATIONS

The Committee notes that the selected themes were not fully covered due to the unavailability of several power utilities that were mandated to make these presentations.

However, the work on theme N°1 is an important part on the roadmap to implement in order to develop energy efficiency and renewable energies.

However, we recommend that the next Committee N° 4 keep on working on the other themes that will always remain relevant in power utilities.

There will be an update on progress, solar and wind technology development level, as well as basic guidelines to reduce losses on the generation, transmission and distribution operational chain together with effective appliance standardization in order to set up an Africa-wide industry for the manufacturing of effective electrical household appliances and energy-saving lamps that meet African norms and standards.

As regards topic number 1, we recommend UPDEA to continue the procedures for the adoption of these documents at the African level and to sponsor, every five year, a study like the one on electricity rates for monitoring the implementation of institutional frameworks targeting the promotion of energy efficiency and renewable energies. This assessment could be carried out by an independent firm.

In the light of the meetings held and experience shared between power utilities, several recommendations were made.

Concerning energy efficiency, the following recommendations can be enumerated:

34

• Enhancing the efficiency of the electrical system through the reduction of the specific consumption of generation plants by an optimal management of available resources and the introduction of the most energy-efficient technologies.

• Reducing technical losses on the transmission network by optimizing the location of generation centres with respect to consumption hubs and to transmission infrastructure reorganization.

• Reducing technical and commercial losses by reorganizing the distribution network, optimizing the characteristics of transformers, fighting against fraud, especially through the adoption of more efficient meter reading systems.

• Vulgarizing low-energy lighting and promoting household energy-saving appliances (refrigerators, air conditioners).

• Upgrading the equipment and industrial processes through energy audits

As regards renewable energies:

• There is a need to integrate water resources in the EE/RE promotion strategy and not to be confined to wind and solar resources.

• The importance of assessing avoided EE/RE project GHG emissions and of promoting them on the carbon market.

• The importance of conducting pilot projects in all sectors in view of mastering various technologies so as to apply them on a large scale as soon as they become competitive.

• The integration, in energy planning, of all the components of renewable energies and new electricity generation techniques.

• The development of power utility staff skills in the areas of EE, new power generation techniques and environment.

Committee N°4 is pleased to have carried out this very important assignment and invites UPDEA to reflect on options to have power utilities take greater responsibility for monitoring the work of UPDEA Study Committees.

35

APPENDICES

1. RENEWABLE ENERGY AND ENERGY EFFICIENCY PROTOCOL

2. GUIDE FOR THE DEVELOPMENT OF INSTITUTIONAL AND REGULATORY FRAMEWORKS FOR THE DEVELOPMENT OF RENEWABLE ENERGIES AND ENERGY EFFICIENCY IN AFRICAN COUNTRIES

3. CERTIFICATION OF HOUSEHOLD APPLIANCES AND LOW CONSUMPTION LAMPS IN GHANA AND TUNISIA

36


Financing and Restructuring the African Power Sector

FINAL REPORT

37

1. INTRODUCTION

The mission assigned to the Restructuring and Financing Committee of the Energy sector is twofold:

● work towards developing tools, means, methods and appropriate measures for the management, financing and development of the power sector in Africa,

● give, from time to time, an update on the restructuring of the African power sector.

The membership of the Bureau of the Committee for the 2008-2012 period is as follows:

Moussi Smail SONELGAZ Algeria Coordinator

Mbenga Vumbi SNEL (DRC) Vice Coordinator

Diallo Safiatou SENELEC (Senegal)

PHCN (Nigeria)

Rapporteur

Vice Rapporteur

2. THEMES

At the October 2008 Study Committee session held in Tunis, four themes were selected and Leaders were designated to steer and lead deliberations.

Working Group N°1

Leader: STEG

Theme: Application of Standard Social tariffs: Case Study

Working Group N°2

Leader: SENELEC/SNEL

Theme: Standard Financing: Financing Problems Confronting African Power Utilities in a Global Financial Crisis Context.

Working Group N°3

Leader: ONE

Theme: Financial Risk Analysis in Funding African Power Utilities

Working Group N°4

Leader: VRA

38

Theme: Workshop on Recent Developments in African Power Utilities Restructuring Experiences

A specific report has already been drafted on this theme. However, it was not discussed at the session.


The average participation rate of members in the meetings of the Committee amounts to 53 percent, which is relatively low. It translates into an average participation of 8 members per Committee meeting (ref. Table 1). Only one member (SONELGAZ) is a regular attendant.

There was also a member, PHCN (Nigeria), who did not attend.

Utility

Meeting

Attendance rateTunis Scientific Committee (SC)

Durban Workshop

Tunis Workshop

Lomé Scientific Committee SC

Mombasa Scientific Committee SC

SBEE 0 1 0 1 0 40 %CET 0 0 0 1 0 20 %CIE 1 1 0 0 1 60 %SOPIE 0 0 1 1 1 60 %STEG 1 0 1 1 1 80 %SONELGAZ 1 1 1 1 1 100 %ENERCA 0 0 0 1 1 40 %EDEL 0 0 0 0 1 20 %SNE 1 1 1 1 0 80 %SENELEC 1 1 1 0 0 60 %KENGEN 0 1 0 1 1 60 %ONE 1 0 1 0 0 40 %SNEL 1 1 0 0 0 40 %PHCN 0 0 0 0 0 0 %ESKOM 0 1 1 0 1 60 %


At the UPDEA Scientific Committee Bureau meeting held in Tunis from 20–22 February 2012, the Bureau of Study Committee n°5 had met.

This meeting was attended by the following utilities:- SONELGAZ – Coordinator (Algeria);- SENELEC – Rapporteur (Senegal);

39

- STEG – Member (Tunisia).

The following are the themes of the Study Committee: (1) Application of Standard Social Tariffs; (2) Financing problems confronting African power Utilities in Global Financial Crisis Context, and (3) Financial Risk Analysis in Funding African power Utilities.As of 20 February 2012, themes 1 and 2 were finalized and the reports prepared. No significant progress has been made in Theme 3 but given its importance, a proposal has been made for it to be extended to the next mandate.

The Committee made the following recommendations:

Theme n°1The need to better characterize beneficiaries of the social tariff to avoid undermining the resolve to help poor households;The interest for power utilities to implement energy efficiency programmes in order to reduce the impact of this tariff on corporate resources.Contributions on the cases of Côte d’Ivoire and Tunisia will be factored in the documentation;

Theme n°2The data collected from power companies on the various project financing arrangements shall be used to draw up an inventory of recent financing experiences and to highlight feedbacks on experiences, the new mechanisms and the relevant recommendations.

Theme no 3No significant progress was made regarding this theme but given its importance, it will be renewed for the next mandate.

DELIBERATION SUMMARY TABLE

40

Theme Stages Implementation Rate Observations

Theme 1: Application

of standards social

tariffs: Case study

Report attached

Data collection

Analysis and choice of solutionFinancial needs estimate

Final report 100 %

Theme 2:

Financing standards: Financing problems confronting African power utilities in a

global financial crisis context.

100 % Report attached

Analysis and choice of solution

Financial needs estimate

Final report100 %

Theme3:

Analysis of financing risks facing African

power utilities

Theme postponed till the next mandate

Analysis and choice of solution

Financial needs estimate

Final report

PRESENTATIONS OF STUDY COMMITTEE N°5The presentations below were made at the different meetings of Study Committee N°5:

Presentation by SOPIE (Côte d’Ivoire) on social tariff, by Mr AHOUSSOU Serges:

In Côte d’Ivoire, the social tariff is set at 8 cUS$/kWh for all subscribers of 1.1kVA power and for a consumption of 80kWh every 2 months.

In 2009, the social tariff accounted for 51 percent of LV tariff energy consumption and 28 percent of national consumption. This tariff category also contributes to 44.5 percent of LV sales and 31 percent of total net revenues (domestic + export).

41

Presentation by STEG (Tunisia) on social tariff, by Mr CHEBBI Laroussi:

A segmentation of Customer per tariff in LV was presented. To limit the effect of this tariff on the financial balance of the utility, an energy control operation consisting in distributing freely one million LBC was undertaking and it targeted 400 000 households that subscribe to 1 or 2 KVA and consume less than 50 KWh per month.

Presentation by SENELEC (Senegal) on the global financial crisis;

The global financial crisis brought about uncertainties regarding the implementation of some public and private investments. In Senegal, foreign direct investments dropped between 2008 and 2009. (781 Billion in 2007; 175 Billion in 2008; -41Billion in 2009)

Presentation by ONE (Morocco) on financial risks;

The model of ONE regarding financial risks management, operations on financial market and materials were well presented and attracted the attention of members of the Committee.

5. CONCLUSIONS AND RECOMMENDATIONS

Following discussions, the Committee made the following recommendations:

Financing of production projects

The production segment, that is very capitalistic, requires significant amounts for its investment. It realizes however a financial profitability that can be guaranteed by the conditions of the sale of the produced kWh, in a « take or pay » type, limiting the commercial risk and sufficiently attractive tariffs for private investors. The intervention of the Independent Private Producers (IPP) or Project-finance can be requested for this segment.

Financing Transmission Projects

The electric power transmission segment, interconnection excluded, requires an investment effort that is less important than the one of the production, but has a diffuse financial profitability in the absence of a unique Operator in charge of this service. The intervention of private capitals in this case is hard to mobilise and one should resort to loans at concessional rates borne by the state.

Financing Grid interconnection Projects

42

The interconnection of Power Grid is the leading priority of sub regional Development Banks, given their mission and their geographical intervention area.

Financing Distribution Networks Extension Projects

On the distribution segment, network extensions and reinforcements in densely populated urban areas provide a financial profitability that is sufficient to be directly funded by the Power sector.

Prospects

The general public bond loan is also a funding facility used in the sector, but it requires a prior attractiveness of the company to attract particular and institutional investors. It should be noted finally that in some countries the impact of the financial crisis and the difficulties of the companies following the rise of the barrel of petrol led to the increased use of public funds fully belonging to the State.

A dedicated funding for the sub region: IRED/UEMOA fund

The EDF an Energy Development Fund (concessional) includes a concessional Fund (the Energy Development Fund) and a Private Investment Fund called « Infrastructure Fund ».This funding facility aims at:• The financial restructuring and reorganization of public utilities • The funding of emergency plans• The creation of favourable conditions to attract a significant private investment in

order to fund the development of medium and long term power supply • Supporting the upgrade of national electric grid and the development of regional

interconnections.

Others: financing rural electrification projects

Rural electrification, on the other hand, is generally unprofitable from a financial perspective but it presents a high economic profitability. This makes it one of the preferred ways of combatting poverty. It should be funded in priority by the State and bilateral aids.

Themes proposed for the next mandate (2012- 2015)

1- Theme n°3 : Analysis of Financial Risks in the funding of African Power Utilities;2- Theme n°4 : Workshop on recent developments of restructuring experiences of

African Power Utilities;3- Which preliminary legal, institutional and financial reforms to make power utilities

attractive?4- Constraints and advantages of public funding.

43


Competitiveness of the Human Resources of member companies

of the Union

FINAL REPORT

45

1. INTRODUCTION

At the invitation of the UPDEA Scientific Committee, the board of Study Committee N°6 held a meeting from February 20-22, 2012, in Tunis, in order to:

1. finalize the progress report on the 2008-2012 mandate;2. prepare the upcoming May 2012 Congress.

The deliberations of the Study Committee were chaired by Mr Kao ABI, Vice-Coordinator, in the presence of Mr Guy Richard DZASSOUKA, Rapporteur, and Mrs. Léila BOUTERAA, Head of Human Resource Information System Project at the Tunisian Electricity and Gas Company (Société Tunisienne d’Electricité et de Gaz) (STEG).

2. THEMES

The following themes were retained by Study Committee N°6 during UPDEA Congress in October 2008 in Tunis:

1. Development of power utilities in Africa: usefulness of experience sharing; 2. Skills management in a competitive environment; 3. Role of gender in the development of power utilities in Africa;4. Impact of motivation on the Improvement of results in African power

utilities;5. Establishment of Human Resource performance indicators in the Union

member utilities. Members of sub working group:

Subgroup N°1: VRA (Ghana), NAMPOWER (Namibia), SENELEC (Senegal), SOGEP (Côte-d’Ivoire), STEG (Tunisia)

Subgroup N°2: CEET (Togo), SONELGAZ (Algeria), GRIDCO (Ghana), SBEE (Benin), STEG (Tunisia)

Subgroup N°3: ESKOM (South Africa), ZESCO (Zambia), KENGEN (Kenya), KPLC (Kenya), PHCN (Nigeria), STEG

Subgroup N°4: CEB (Benin/Togo), SONABEL (Burkina), SNE (Congo B.), EDEL (Angola), GECOL (Libya)

Subgroup N°5: STEG (Tunisia), ZESCO (Zambia), SONELGAZ (Algeria), GRIDCO (Ghana), CEET (Togo).

It should be stressed that UPDEA assigned the 5th theme to the Study Committee during the Congress and it was entrusted it to STEG in February 2010.

46


III.1. Members of the Board of the Study Committee

The table below summarizes the actual attendance of the members of the Bureau at the various meetings.

N° UTILITYMEETINGS Attendance

rateTUNIS28

/10/2008

DURBAN17-20

/03/2009

TUNIS18-19

/02/2010

LOME27-29

/10/2010

MOMBASSA

4-7 /07/2011

TUNIS20-22

/02/2012

1 SNEL oui oui non non non non 33,32 %2 CEET oui oui oui oui non oui 83,3 %3 SNE oui oui oui oui oui oui 100 %4 ZESCO non oui oui non oui oui 66,64 %

III.2. Subgroup Members

This table summarizes the effective attendance of the members at different meetings.

N° UTILITYMEETINGS Attendance

rate TUNIS28 /10/2008

DURBAN17-20 /03/2009

TUNIS18-19

/02/2010

LOME27-29

/10/2010

MOMBASSA4-7 /07/2011

5 SBEE Oui non Non oui oui 60 %6 SONABEL Non non non non non 0 %7 SOGEPE Oui non oui non non 40 %8 STEG oui non oui non oui 60 %9 SONELGAZ oui non oui oui oui 80 %

10 PHCN non non non Non non 0 %11 GRID CO oui non oui oui oui 80 %12 VRA oui oui oui Non oui 80 %13 SENELEC non oui oui oui non 60 %14 ESKOM oui oui oui oui non 80 %15 NAM POWER non non Non Non non 0 %16 GECOL non non Oui Non non 20 %17 ENE non oui Oui Non non 40 %18 CEB oui non Non Non non 20 %19 KENGEN non oui Non Non oui 40 %20 EDEL oui non oui Non non 40 %21 NIGELEC non non non Non oui 20 %

47

The analysis of data in the tables above call for a few remarks:

1. It should be noted that it is about 50 percent of the 21 member utilities on the Study Committee that regularly attended the meetings held. Among them only one attended all the meetings. (SNE/Congo Brazzaville). Therefore, the non-participation of the majority of member utilities in deliberations, despite their voluntary registration as members of the Study Committee is to be deplored. These absences seriously disrupt the functioning of the Committee as the deliberations in which the absentees agreed to participate have not been submitted.

2. The coordinator of the Study Committee designated during the 2008 Congress, Mr. Etienne MUANZA from SNEL, did not discharge his duties at all, leaving the Vice-Coordinator, Mr. Kao ABI from CEET, to lead the Committee during the entire mandate. This default disrupted the coordination of the deliberations and the coordination of relations between members of the Study Committee.

3. The meetings planned by the Study Committee at the request of some utilities were not held because host utilities withdrew at the last moment, and this largely contributed to delaying the progress of deliberations.


This item concerns the development of the five themes by the sub working group established by the Study Committee.

Theme N°1: Development of power utilities in Africa: usefulness of experience sharing

Subgroup Leader: Mrs. EFUAH GARBRAH-SARFO from VRA (Ghana)

This sub working group identified all professional training centres existing in the member power utilities of the Union as well as the training area. The objective of this work is to create a directory of the training centres to make it available to member utilities of the Union. These utilities could then pool their training needs according to the proposed offers.

This theme will be proposed to the General Secretariat of UPDEA for presentation during the Congress.

Theme N°2: Skills management in a competitive environment.

Subgroup Leader: Mr. Abi KAO from CEET (Togo)

This theme focused on:

48

1. The definition of the skills management concept;2. The problem currently facing power utilities in terms of skills management;3. The proposed solutions to the issues of skills management in the power

utilities.

The solution approach proposes several recommendations, including:

a. The redefinition of the role of the Human Resource function in the Utility;b. The compensation of skills;c. The management of performance and skills;d. The use of information technology in setting up of Human Resource tools;e. The presentation of skills management improvement areas.


Theme N°4: Impact of motivation on the Improvement of results in African power utilities.

Subgroup Leader: Mr. Guy Richard DZASSOUKA from SNE (Congo Brazzaville)

This sub working group defined two types of motivations: material and immaterial motivations. After analysing the various practices, it was noted that each Utility had its own motivation system. It was also noted that some companies such as STEG, ESKOM, CIE, SENELEC,… are well advanced in terms of staff motivation, while others lagging behind.

The working group wished the Scientific Committee of UPDEA could suggest to all Union member utilities a benchmark for incentive policies so as to allow a harmonisation of the practices in this area with the following recommendations:

a. definition and implementation of a social policy in line with staff expectations;

b. setting up a motivation system taking into account the requirements and constraints of the Utility and the environment;

c. setting up a psychological reward system aimed at strengthening the sense of belonging in the Utility.

It should be pointed out that the motivation reference data will allow Union member utilities to retain the skills in this competitive world facing them, especially with the gradual loss of the monopoly they enjoyed in power generation, transmission, distribution and sale. The motivation practices should be shared by all Union utilities so

49

as to guide them in implementing those suiting their environment and their companies’ best.


Finally, deliberations of sub groups N°3 and N°5 did not record adequate progress. These two themes will be maintained and developed during the 2012-2015 period because of their interest with respect to the management of the member utilities of the Union. These two subgroups are led respectively by Mrs Sylvia MAMORARE from ESKOM (South Africa) and Mrs Léila BOUTERAA from STEG (Tunisia).

5. CONCLUSION AND RECOMMENDATIONS

The Study Committee made several recommendations with respect to the participation of members in meetings, the conduct of deliberations and proposed two new themes:

1. The issue of the measurement of the contribution of human resources to value creation in African power utilities.

2. The creation of an environment for the complete well-being of

employees within African power utilities. Due to the abovementioned difficulties, the Study Committee recommended that UPDEA reorganizes the Bureau of the said Committee at the next Congress taking into account the participation of the utilities in deliberations.

The utilities that did not reach a participation rate of 50 percent in the deliberations of the different Study Committees must be called on by UPDEA General Secretariat, in writing, to improve their contributions during the next mandate. It is particularly important to remind these utilities the rationale of our Union in the common analysis and search for solutions to the multiple challenges all African power utilities are faced with daily.

The deliberations of the meeting of UPDEA Scientific Committee ended on 22 February 2012 with the visit of the site of the Congress slated to be held on May 28-31, 2012, in Hammamet (Tunisia).

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