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Kafue Gorge Regional Training Centre

(Trust)

Our Motto:

“Your Home for Energy

Training and

Conferences”

STRATEGIC BUSINESS PLAN

2018-2022

“DIVERSIFICATION FOR GROWTH”

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TABLE OF CONTENTS

BUSINESS DESCRIPTION........................................................................................ vii

KGRTC BOARD OF TRUSTEES ............................................................................. viii

EXECUTIVE SUMMARY .......................................................................................... ix

1. BACKGROUND OF THE KAFUE GORGE REGIONAL TRAINING

CENTER .................................................................................................................... 11

1.1 Brief History ...................................................................................................... 11

1.2 Legal Mandate and Enabling Instruments ........................................................... 11

1.2.1 Country Agreement .............................................................................. 11

1.2.2 Memorandum of Understanding with ZESCO....................................... 12

1.2.3 Trust Deed ............................................................................................ 12

1.3 Socio-Economic Benefits of the Centre .............................................................. 13

1.4 Services Offered ................................................................................................. 14

1.4.1 Training ................................................................................................ 14

1.4.2 Consultancy Services ............................................................................ 14

1.4.3 Conference and Seminar Facilities ........................................................ 14

1.4.4 Accommodation ................................................................................... 15

1.4.5 Catering Facilities ................................................................................. 15

1.4.6 Other Facilities ..................................................................................... 15

2. ORGANIZATIONAL ASSESSMENT ................................................................ 16

2.1 Review of the 2013 – 2017 Business Plan .......................................................... 16

2.1.1 Course Participants from 2013 to 2017 ................................................. 19

2.1.2 Conference and Seminar Facilities Utilization from 2013 to 2017 ......... 20

3. RATIONALE FOR STRATEGIC BUSINESS PLAN 2018-2022 ......................... 21

4. THE PLANNING FRAMEWORK ..................................................................... 21

5. SITUATIONAL ANALYSIS .............................................................................. 22

5.1 PESTEL Analysis ............................................................................................... 22

5.2 SWOT Analysis ................................................................................................. 24

5.3 Risk Management ............................................................................................... 27

5.3.1 Analysis of Risks .................................................................................. 28

5.3.2 Risk Mitigation Strategies ..................................................................... 29

6. STRATEGIC BUSINESS PLAN FOR 2018 – 2022 ............................................. 31

6.1 KGRTC Vision, Mission and Core Values.......................................................... 31

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6.2 Strategic Themes for the Strategic Business Plan 2018 – 2022............................ 32

6.3 Strategic Objectives and KPIs for the 2018 – 2022 SBP ..................................... 33

6.4 Strategy Map for the 2018 – 2022 SBP ............................................................... 33

6.5 Corporate Balanced Scorecard ............................................................................ 33

6.6 The KGRTC Balanced Scorecard for the 2018 – 2022 SBP ................................ 35

6.7 Overall Target Performance for the 2018 – 2022 SBP ........................................ 41

6.8 Implementation of the 2018 – 2022 SBP............................................................. 41

6.9 Key Assumptions/Critical Success Factors ......................................................... 41

7. MARKETING PLAN ......................................................................................... 42

7.1 Stakeholder Analysis and Expectations............................................................... 42

7.2 Centre’s Customers ............................................................................................ 43

7.3 Business Geographical Coverage ........................................................................ 44

7.4 Competition Risk and Potential Market .............................................................. 44

7.5 Marketing Strategies........................................................................................... 45

7.5.1 Advertising ........................................................................................... 46

7.5.2 Marketing Literature ............................................................................. 46

7.5.3 Promotional Activities .......................................................................... 46

7.5.4 Corporate Social Responsibility ............................................................ 46

8. OPERATING PLAN .......................................................................................... 47

8.1 Operating Programme ........................................................................................ 47

8.2 Current and Envisaged Services to be Offered .................................................... 47

8.3 Operating and Utilization Capacity ..................................................................... 48

8.4 Power Projects and New Learning Centre ........................................................... 49

8.5 Other Fixed Assets Requirements 2018-2022 ..................................................... 49

8.6 Projected Revenue and Expenditure Summary 2018 – 2022 ............................... 49

9. GOVERNANCE STRUCTURE ......................................................................... 50

9.1 Board of Trustees ............................................................................................... 50

9.2 The Committees of the Board ............................................................................. 50

9.3 Management and Staff Establishment ................................................................. 51

9.4 Review of the Organizational Structure .............................................................. 54

10. FINANCIAL PLAN 2018– 2022 ......................................................................... 55

10.1 Key Underlying Assumptions 2018-2022 ........................................................... 55

10.1.1 Macro-economic Assumptions .............................................................. 55

10.1.2 Revenue Assumptions and Notes .......................................................... 55

10.1.3 Expenditure Assumptions and Notes ..................................................... 56

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10.1.4 Human Capital Management Assumptions............................................ 56

10.1.5 The Regulatory Environment ................................................................ 56

10.2 Projected Income & Expenditure 2018-2022 ...................................................... 57

11. IMPLEMENTATION, MONITORING AND EVALUATION (M&E) ................ 58

12. CONCLUSION .................................................................................................. 59

APENDICES ...................................................................................................................... 62

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LIST OF TABLES

Table 1 Social Economic Benefits of the Centre

Table 2 Colour Coded Rating Scale

Table 3 Summary Institutional Rating 2013-2017

Table 4 Participation by Country 2013 to 2017

Table 5 SWOT Card

Table 6 Risk identified in 2018

Table 7 KGRTC’s Customers

Table 8 Marketing Strategies

Table 9 Operating Hours

Table 10 Additional Facilities from the Proposed Investments

Table 11 Operation and Utilization capacity

Table 12 Investment Projects [Power Projects & Learning Centre]

Table 13 Additional Capital Items

Table 14 Projected Income and Expenditure 2018-2022

Table 15 Direct and Indirect Labour

LIST OF FIGURES

Figure1 KGRTC Risk Matrix

Figure 2 KGRTC Strategy Map

Figure 3 Stakeholder Map

LIST OF CHARTS

Chart 1 Participation by Country

Chart 2 Participation by Region

LIST OF GRAPHS

Graph 1 Course Participants Trends 2013 to 2017

Graph 2 Conference & Seminar Facilities Utilization

APPENDICES

Appendix I Performance Review of The KGRTC Business Plan 2013-2017

Appendix II (a) Proposed Organogram

Appendix II (b) Current Organogram

Appendix III Current and Proposed Positions and Titles

Appendix IV PESTEL Analysis

Appendix V Historical Statement of Income and Expenditure [2013-2017]

Appendix VI Projected Statement of Income and Expenditure [2018-2022]

Appendix VII Projected Statement of Financial Position [2018-2022]

Appendix VIII Investment Projects [2018-2022]

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ABBREVIATIONS

CBU Copperbelt University

COMESA Common Market for Eastern and Southern Africa

DRC Democratic Republic of Congo

DSTV Digital Satellite Television

EAC East African Community

EEC Eswatini Electricity Company

GDP Gross Domestic Product

GRZ Government of the Republic of Zambia

GWh Giga Watt hour

ISO International Organization for Standardization

JICA Japan International Cooperation Agency

KGRTC Kafue Gorge Regional Training Centre

ME Ministry of Energy

MoHE Ministry of Higher Education

MOU Memorandum of Understanding

NAPSA The National Pensions Scheme Authority

NGO Non-governmental Organization

NORAD Norwegian Agency for International Development

ROA Return on Assets

SADC Southern African Development Community

SAPP Southern African Power Pool

Sida Swedish International Development Agency

SWOT Strengths, Weaknesses, Opportunities and Threats

TANESCO Tanzania Electric Supply Company

TEVETA Technical Education, Vocational and Entrepreneurship Training Authority

UETCL Uganda Electricity Transmission Company Limited

UNZA The University of Zambia

WAPP West African Power Pool

ZAMINEX Zambia Industrial and Mining Exposition

ZESA Zimbabwe Electricity Supply Authority

ZESCO ZESCO Limited

ZRA Zambia Revenue Authority

IHA International Hydropower Association

INSHP International Network on Small Hydropower

KAFUE GORGE REGIONAL TRAINING CENTRE

STRATEGIC BUSINESS PLAN 2018-2022

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BUSINESS DESCRIPTION

Name of Business : Kafue Gorge Regional Training Centre

Nature of the Business : Training

Main Contact Person : The Director

Business Address : P.O. Box 35, Namalundu, Chikankata District,

Zambia

Or

P.O. Box 32774, Lusaka, Zambia

Telephone Numbers (+260-

211)

: 371007/8, 371076, 371085/371084, 363749

Mobile Numbers (+260) : 966 940645, 953 821697, 976 668843

Email Address : [email protected]

Website : www.kgrtc.org.zm

Facebook Page

Business Bankers

:

:

www.facebook.com/kafuegorgeregionaltrainingcentre

1. Barclays Bank Zambia PLC

: 2. Stanbic Bank Zambia Ltd

Business Legal Documents : Trust Deed, Certificate of Registration with the

Registrar of Societies

Business Lawyers : ZESCO Legal Directorate

mailto:[email protected]



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KGRTC BOARD OF TRUSTEES

Name Designation Organization/ Country

1. Eng. Fidelis Mubiana Board Chairperson ZESCO, Zambia

2. Mr. Nathan K. Daimon Trustee TANESCO, Tanzania

3. Ms. Noncedo Mamba Trustee EEC, Eswatini

4. Prof. Mundia Muya Trustee UNZA, Zambia

5. Mrs. Rhoda K. Mwale Trustee ZESCO, Zambia

6. Mr. Daphter Namandwa Trustee ESCOM, Malawi

7. Mr. Rufaro Pasipanodya Trustee ZESA, Zimbabwe

8. Mr. Muzano A. Simumba Trustee MoHE, Zambia

9. Mr. Arnold Simwaba Trustee ME, Zambia

10. Mr. Fredrick C. Zesooli Trustee UETCL, Uganda

11 Eng. Kaela K. Siame Trustee KGRTC, Zambia

12. Mr. Jones Nguluwe Observer ZESCO, Zambia

KGRTC BOARD COMMITTEES

Finance and Administration

Committee

Mr. Fredrick Zesooli Chairperson

Mrs. Rhoda K. Mwale Member

Prof. Mundia Muya Member

Dr. Egret C. Lengwe Member

Eng. Kaela K. Siame Member

Audit and Risk Committee

Mr. Rufaro Pasipanodya Chairperson

Mr. Nathan Daimon Member

Ms. Noncedo Mamba Member

Mr. Joshua Malupenga Member

Technical Committee

Mr. Daphter Namandwa Chairperson

Eng. Fidelis Mubiana Member

Mr. Muzano A. Simumba Member

Mr. Arnold Simwaba Member

Mr. Jones Nguluwe Member

Eng. Kaela K. Siame Member

KGRTC MANAGEMENT

Name Designation

1. Eng. Kaela. K. Siame Director

2. Eng. Brian H.M. Makungo Training Manager

3. Mr. Evans Mweemba Bursar

4. Mrs. Aydlinn Liswaniso Marketing and Public Relations Manager

5. Mrs. Linda K. Nyirenda Audit and Risk Manager/ Secretary Audit

and Risk Committee

6. Mrs. Maureen M. Salimu Registrar/ Board Secretary



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EXECUTIVE SUMMARY

This Strategic Business Plan (SBP) outlines the aspirations and priorities of the Kafue Gorge

Regional Training Centre (“KGRTC” or “Centre”) in the short to medium term. These

priorities are delineated into strategic objectives in order to address the breadth of the

organization’s mandate. The SBP Plan spans a five year period from 2018-2022 and is

structured in the Balanced Scorecard Framework.

The KGRTC SBP 2018 – 2022 has been developed taking into consideration the current global

and local economic indicators, selected African regional bodies’ developmental plans (ICA

2016)1, the Zambian 7th National development Plan (7NDP)2, past performance of the KGRTC

Strategic and Business Plans, and a variety of views and ideas from both within and outside

KGRTC. The SBP was developed under the general theme “Diversification for Growth”, taking

into account the various projects and investments the Centre plans to undertake.

The Business Plan which expired on 31 December 2017 is considered as Phase I in the Business

Development of KGRTC under which a number of initiatives aimed at achieving self-

sustainability of the Centre were developed. These included conducting a number of feasibility

studies on the various identified projects. The SBP 2018 to 2022 is considered as Phase II of

the Business Development and will focus on the implementation of the various initiatives

developed under Phase I.

As a training Centre, our ultimate goal is to develop skills and competencies in energy

technologies in a manner that facilitates sustainable energy development for socio-economic

transformation in Sub Sahara region. Like an eagle we are determined to remain focused on

our role, and show strength and dynamism in discharging our mandate.

The Centre’s Vision and Mission remain focused on developing competencies in Energy

Technologies. The core values were revised to incorporate Quality and Respect for All

replacing Excellence and Zero Tolerance to Corruption.

The SBP 2018 to 2022 proposes change of title for some positions on the KGRTC establishment

in order to align them with the current business practice and industry norm.

Our main thrust during the SBP period will be to achieve the following:

1. Train a minimum of 2,500 course participants in energy technologies in Africa by 2022.

This is comparable to the total number of course participants trained during the last five

years ended 31 December 2017.

1www.icafrica.org – Regional Power Status in African Power Pools, 2016 update

2www.mndp.gov.zm – 7th National Development Plan, Zambia

http://www.icafrica.org/

http://www.mndp.gov.zm/



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2. Commission and operate the 200 Kilo Watts Chipota Falls Mini Hydropower Station

by June 2021. This project is being financed by UNDP and KGRTC under the China-

Zambia South to South Renewable Energy Technology transfer project.

3. Commission and operate the 13 Mega Watts Small Hydropower Station under the

Kafue Gorge Lower Hydropower Project by ZESCO. In this plan it is assumed that this

power station will be handed over to KGRTC in June 2022.

4. Commence the construction of a New Learning Centre by 2019 and reach completion

by 31 December 2022.

5. Mobilize financing for the 10 Mega Watts Small Hydropower Station and commence

construction by 2022.

6. Mobilize financing for 7.5 Mega Watts KGRTC Wind Farm by 31 December 2019

and target10% completion by 2022 based on certified works.

7. Assume the management of selected ZESCO’s hospitality business operations in

Siavonga, Kafue Gorge and Itezhi Tezhi. This will go a long way in supporting the

proposed expansion in KGRTC seminars and conference services.

All the above projects and activities are designed to enhance our training capacity and financial

sustainability.

The Trust Deed also stipulates specific functional areas of focus and related expectations. This

SBP therefore integrates these obligations, stipulations and functions into priority areas and

discusses how these are going to address the overall mandate of the organization within the

time-frame specified.

OFFICIAL SIGN OFF

It is hereby certified that this Strategic Business Plan 2018-2022:

1. Was developed by the Board of Trustees of KGRTC;

2. Takes into account all the relevant policies in particular the 7NDP, legislation and other

mandates for which KGRTC is responsible; and

3. Accurately reflects the strategic outcome oriented objectives, which KGRTC will

endeavor to achieve over the period 2018-2022.



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1. BACKGROUND OF THE KAFUE GORGE REGIONAL TRAINING CENTER

1.1 Brief History

Kafue Gorge Regional Training Centre (“KGRTC” or “the Centre”) was established

and registered as a Trust in 1989 with the core business being Hydropower Training,

Conferences and Accommodation. ZESCO Limited – the electricity utility of Zambia,

Norwegian Agency for Development Cooperation (Norad) and Swedish International

Development Cooperation Agency (Sida) funded the Centre as a project.

The Centre has been receiving assistance from the Royal Norwegian Government and

the Royal Swedish Government through Norad and Sida respectively since the inception

of the project. Norad and Sida funded the capital equipment and rehabilitation of the

facilities at the Centre. In addition, Norad and Sida offered scholarships to a number of

course participants from the utilities in the region.

ZESCO is a key institution that established the Centre as part of its staff training needs.

Subsequently between 1997 and 2000, ZESCO ceded the Centre to the Southern African

Development Community (SADC) with autonomy for self-management through a

Board of Trustees. KGRTC thus became a SADC In-Service training facility targeted

at building capacity in mainly the electricity utilities within the region. ZESCO

however, maintains keen interest in the development of the Centre. In terms of

ownership, ZESCO can be considered as the key stakeholder as it provides a grant which

caters for over 50 percent of the Centre budget through facility use and staff

emoluments. ZESCO is committed to KGRTC in the long term. This commitment is

important as it assures of institutional stability and sustainability.

KGRTC has continued to grow over the years and notable among its achievements have

been the following:

a) ISO 9001 certification, as well as integration of ISO 22000 and ISO 50001;

b) High standard facilities;

c) Development of demand-driven technical courses;

d) Installation of electrical training Simulators; and

e) Availability of qualified staff.

1.2 Legal Mandate and Enabling Instruments

1.2.1 Country Agreement

The Government of the Republic of Zambia and the Governments of the Royal

Kingdoms of Norway and Sweden entered into an agreement on 11 July 1997.



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This set forth the terms under which Norway and Sweden were to render

financial assistance to the Centre during the period 1997 and 1999. The purpose

of the project was to increase the efficiency, competence and capacity of

KGRTC as a regional body. The project cost amounted to US$ 5, 833, 846

financed by Norway, Sweden, ZESCO, SADC Utilities and income from tuition

fees, conferences and seminars.

1.2.2 Memorandum of Understanding with ZESCO

A Memorandum of Understanding (MoU) was signed on 12 September 1997

between ZESCO Limited and KGRTC. The main provisions of the MoU are as

follows:

a) That the Centre be delinked from ZESCO and be handed over to the Board

of Trustees.

b) The Chairmanship of the Board of Trustees be vested in ZESCO.

c) Income generated by the Centre shall remain with the Centre and be

controlled by the Centre management in cooperation with the Board of

Trustees.

d) The Centre may establish its own terms and conditions of service in order

to attract high calibre personnel thereby maintaining a high international

standard as a Regional Training Centre.

e) ZESCO as a host utility company would continue to support the Centre

in the same functions and operations as before. This shall include but

would not be limited to:

i) Secondment of staff to the Centre;

ii) Free use of the campus area;

iii) Free use of the electricity and water;

iv) Free use of the power house for practical training;

v) Provision of staff accommodation; and

vi) Provision of transport and fuel.

1.2.3 Trust Deed

The Trust Deed provides the rules and regulations of how KGRTC is to be

managed. It provides for:

a) Objects of the Trust;



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b) Borrowing powers of the Trustees;

c) General powers of the Trustees;

d) Proceedings of the Trustees;

e) Appointment of the Director of the Centre;

f) Appointment of the Secretary of the Board of Trustees;

g) Appointment of Auditors;

h) Power to appoint a sub-committee to deliberate on matters concerning

administration of the Trust; and

i) Liability of Trustees.

1.3 Socio-Economic Benefits of the Centre

Table No. 1: Social Economic Benefits of the Centre

Factor Description

1. Employment

Creation

KGRTC currently has 66 employees and this number is expected to

increase as the Centre embarks on its strategic themes for the period

2018 to 2022. In addition to the existing employees, the Centre

engages members of the local community to undertake short-term

projects. KGRTC also supports internship placement and these are

usually drawn from the local community.

2. Transfer of

knowledge and

skills

By its very nature, the Centre is an institution which will

continuously be involved in the transfer of specialized knowledge

and skills in the key focus areas for training.

3. Contribution to

the National

Treasury and the

Local Council

The Training Centre will continue to contribute to the national

treasury and the local council through payment of various forms of

taxes, levies, fees and other statutory requirements.

4. Corporate Social

Responsibility

The Centre has a strong policy on corporate social responsibility

and shall continue to support various community based activities

including donations to various institutions. The Centre allocates 5

percent of its annual marketing budget to corporate social

responsibility activities.

5. Offering Market

Opportunities

The existence of KGRTC inevitably offers market opportunities to

the various businesses in the local community and beyond, which

supply various goods and services to the Centre.



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1.4 Services Offered

1.4.1 Training

The Centre offers training in the following five (5) core focus areas:

a) Power Systems Operations;

b) Engineering Maintenance;

c) Engineering Applications and Management;

d) Safety, Health, Environment and Quality Assurance; and

e) Corporate Governance, Management and Leadership Development.

The scheduled training programmes range in duration from two days to thirteen

weeks and are conducted on a residential basis. All the courses are certified at

skills award level for competency under the Technical Education, Vocational

and Entrepreneurship Training Authority (TEVETA) in Zambia. Appendix II

details the courses offered and country participation.

In addition, the Centre offers tailor-made training programmes and conducts on-

site training at clients’ premises in order to cost effectively meet the specific

needs of individual organizations.

1.4.2 Consultancy Services

KGRTC offers consultancy services in technical and non-technical areas

including energy management, quality assurance, energy resource assessment

and in the area of management and organization.

1.4.3 Conference and Seminar Facilities

The Centre has earned itself an international reputation in the provision of

excellent accommodation and conference facilities. The following facilities are

offered:

a) Conference Halls

i) Africa Conference Hall

A spacious, air conditioned Conference Hall, which sits a

maximum of 100 delegates. It is equipped with a big LED screen

television, white board, public address system, LCD projector and

flip chart stand.

ii) Kilimanjaro Board Room

An immaculate, air-conditioned venue which sits a maximum of 18

delegates. It is equipped with white board, television, flip chart

stand, and LCD projector which are provided on request.



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iii) Meeting Rooms

There are two meeting rooms, Kariba and Victoria, and a computer

based training room. The sitting arrangement can be set according

to delegates’ needs. They have similar facilities to Kilimanjaro

Boardroom.

1.4.4 Accommodation

The Centre has seventy seven (77) self-contained and well furnished rooms with

comfortable study areas to cater for all clients. KGRTC provides free Wi-Fi to

all clients. The following types of accommodation are available:

a) Executive Rooms

The Centre has twelve (12) self-contained executive rooms, fully

furnished with a queen size bed, DSTV, fridge, with air-conditioning.

b) Standards Rooms

KGRTC has fifty six (56) self-contained standards rooms. Each room has

a double bed, en-suite bathroom, DSTV, study area, fridge and is air-

conditioned.

c) Twin Bedded Rooms

The Centre has nine (9) self-contained twin bedded rooms. Each room has

two three-quarter beds, DSTV, study area, fridge and en-suite bathroom

and is air-conditioned.

1.4.5 Catering Facilities

The Centre has two (2) restaurants Lule and Nidelva, which offer a variety of

menus at competitive market rates.

1.4.6 Other Facilities

a) Oasis Mingling Bar

The Oasis mingling outdoor bar stocks a wide variety of beverages.

Guests have free access to the cash bar with DSTV entertainment. In

addition, fast food take away services are available.

b) Gymnasium

KGRTC has a gymnasium for clients who want to keep fit at no extra

charge. However, membership is open to the local community and other

walk-in guests at a fee.

c) Transport and Business Centre

KGRTC hires out transport to guests and also provides secretarial services

through the Business Centre for printing, binding, photocopying etc.



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2. ORGANIZATIONAL ASSESSMENT

2.1 Review of the 2013 – 2017 Business Plan

KGRTC formulated a five year Business Plan for the period 2013 -2017. The said

Business Plan came to an end in December 2017. In the development of the new

Strategic Business Plan for the period 2018-2022 a review of the previous plan was

carried out to assess the key achievements and challenges faced during the

implementation of the plan.

The Strategic Objectives of the previous Business Plan for the period 2013 -2017 were

as given below. These objectives were reviewed under each of the three thematic areas

as follows:

Thematic Area 1: Financial Performance

a) To provide quality training and increase revenue by 5% annually.

b) To increase market share by 10%.

c) To diversify the training package to satisfy the customer requirements.

Thematic Area 2: Increased Training Capacity in Energy Technologies

a) To design and Develop new courses in energy technologies.

b) To acquire and install infrastructure for new energy technologies.

c) To develop a mini – hydropower station.

d) To establish and maintain effective formal relations with other institutions.

Thematic Area 3: Sustainability

a) To effectively develop and maintain human resources.

b) To provide cost effective logistical and administrative support services.

c) To review the KGRTC Business Plan.

The end of term performance review was carried out by Management in order to assess

the overall institutional performance against the 2013-2017 Business Plan Vision,

Objectives and Strategic Indicators. In implementing the Business Plan for the period

2013 – 2017, KGRTC had ten (10) Strategic Objectives and Twenty-three (23) Key

Performance Targets (KPTs). The overall score for the institutional performance

was 64% against the predetermined targets set in the Business Plan.

In reviewing the performance of the organisation, each objective and performance target

was subjected to an in-depth review. The objectives were considered to be cross cutting

and therefore, the review focused on the processes. In addition, a performance review

tool was developed with a rating scale of 1 to 3 as indicated in Table 2.



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Table 2: Colour Coded Rating Scale

Rating Scale Colour code % Range

3 = Good >70%

2 = Average/Moderate 50 - 70%

1 = Below Average <50%

During the performance review process, management provided evidence of objective

achievement based on the identified means of verification. A summary of the highlights

of the institutional report are as indicated in Table 3.

Table 3: Summary Institutional Performance Rating [2013 – 2017]

No. Description Target

Score

Actual

Raw

Score

Raw

Score

(%)

SO 1 To provide quality training and increase revenue

by 5% annually [04 KPIs x 5 points] 20 17.4 87%

SO 2 To increase market share by 10% [02 KPIs] 10 7.0 70%

SO 3 To diversify the training package to satisfy the

customer requirements. [02 KPIs] 10 8.0 80%

SO 4 To design and develop new courses in energy

technologies [04 KPIs] 20 13.0 65%

SO 5 To acquire and install infrastructure for new

energy technologies [02 KPIs] 10 6.0 60%

SO 6 To Develop a mini – hydropower station [02

KPIs] 10 4.0 40%

SO 7 To establish and maintain effective formal

relations with other institutions [3 KPIs] 15 6.0 40%

SO 8 To effectively develop and maintain human

resources [2 KPIs] 10 8.0 80%

SO 9 To provide cost effective logistical and

administrative support services [1 KPI] 05 2.4 48%

SO 10 To Review the KGRTC Business Plan [1 KPI] 05 2.0 40%

Total Score 115 73.8 64.17%

Overall Performance Rating (%) 64.17%



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The overall performance score of 64% highlighted above is mainly explained by the

following among other factors:

i) Constrained financial resource base to undertake capital projects

ii) Limited space at the training center in terms of accommodation and conference

facilities.

iii) Some of the measures in the Business Plan were not clearly outlined.

Initiatives to address these challenges have been identified and incorporated in the new

Strategic Business Plan 2018-2022 Corporate Scorecard.

A detailed review of the 2013 -2017 Business Plan is given in Appendix I.

The Business Plan 2013 to 2017 also took into account the proposed investment in a

Small Hydropower Station and other infrastructure that would impact the operations of

the Centre beyond the planned period. An investment of about US Dollars 13.7million

was required to turn around the fortunes of the Centre through investment in the small

hydropower station, construction of a new learning Centre, procurement of power

systems simulators and development of new courses.

However not all planned activities were achieved. Consequently the Business Plan had

to be reviewed and executed in two phases. The first phase was to be implemented for

the purpose of undertaking feasibility studies, which were grant financed by Sida to

ascertain the actual investment costs for implementing the objectives of the Business

Plan.

The financial activities which were planned to ensure self-sustainability were not met

especially the internally generated income activities in training and other income

support areas such as seminars and conferences, accommodation and restaurant. The

external income support from ZESCO was more than fulfilled but, KGRTC needed to

reduce this dependence by increasing the internally generated income against the

ZESCO support. The planned support from ZESCO was 48% of the total income and

KGRTC internally generated income was 43% of the total income.

The first review of the business plan was done in 2016 and revealed a two-year behind

schedule and some of the financial projections, assumptions and indices had drastically

changed due to global and local economic disturbances, which affected the

implementation of the set benchmarks. The review needed to be done consistently on

an annual basis to ensure deviations were monitored and adjustments done to move with

an updated Business Plan.

The second phase was to be executed as the final implementation of the Business plan

by constructing the planned investments of the new learning centre, the small

hydropower station, simulators and investments into solar and wind technology. The

Board of Trustees approved phase one activities in line with the funding agreement with

Sida but was delayed due to authorization processes between Sida and KGRTC.



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All set benchmarks for the grant were met and feasibility studies completed except for

the wind technology project which will end in April 2018. Sida had provided a

Transaction Advisor, who is based in South Africa on the USAID Power Africa project,

to review the feasibility studies reports and guide KGRTC on the best financing model

for soliciting of funding for phase two of the Business development of KGRTC.

2.1.1 Course Participants from 2013 to 2017

Between 2013 and 2017 a total of twenty-six (26) countries participated on

KGRTC training programmes with a cumulative record of more than 2,347

course participants. The number of course participants had generally been

increasing on average per year against the set target with the exception of 2015

when KGRTC failed to meet the planned number of course participants.

Graph 1: Course Participants Trend 2013 to 2017

Zambia sent the most course participants to the Centre for training making up

42% of the total. This comprised participation from ZESCO, National Electricity

Utilities, Independent Power Producers, Water Utilities, Mining and Sugar

Companies. This was followed by Malawi and Angola with 12% and 8%

respectively. The SADC countries had utilized the centre far more than the other

regions.

Participation by other organizations in the region accounted for 38%, which was

rather low considering the Centre, was the only one of its kind in the region.

The increase in participation by some of the SADC countries such as Angola

had been due to the Association of Power Utilities in Africa (APUA)

scholarships through the African Network of Centre’s of Excellence

(ANCEE).Historically, for the years 2013 to 2017, the split in numbers of course

participants by country were as shown in Table 4.



20 | P a g e

Table 4 : Participation by Country 2013 to 2017

S/N Country Participants Percentage

1 Angola 198 8%

2 Bhutan 2 0%

3 Botswana 53 2%

4 Burundi 2 0%

5 Cameroun 1 0%

6 Congo DR 53 2%

7 Cote d'Ivoire 4 0%

8 Egypt 6 0%

9 Ghana 82 3%

10 Kenya 73 3%

11 Lesotho 3 0%

12 Liberia 26 1%

13 Malawi 277 12%

14 Mozambique 41 2%

15 Namibia 13 1%

16 Nepal 2 0%

17 Nigeria 6 0%

18 Rwanda 76 3%

19 South Africa 13 1%

20 Sudan 6 0%

21 Swaziland 94 4%

22 Tanzania 117 5%

23 The Gambia 21 1%

24 Uganda 174 7%

25 Zambia 977 42%

26 Zimbabwe 27 1%

Actual No. of Course Participants 2,347 100%

2.1.2 Conference and Seminar Facilities Utilization from 2013 to 2017

Over the Business Plan period of 2013 to 2017, utilization trends of the

conference facility had mixed results but this was largely negative. This was

caused by the increased number of courses conducted at KGRTC and had made

it difficult for seminar and conference clients with large numbers over ten (10)

to book the facilities. There was still a big potential for meetings and conferences

on energy in Africa.

Graph 2: Conference and Seminar Facilities utilization

2013 2014 2015 2016 2017

Seminar Participants 1,946 1,310 1,163 551 673

-

500

1,000

1,500

2,000

2,500

Num

ber

Of P

artic

ipan

ts

Seminar/Conference Participants



21 | P a g e

3. RATIONALE FOR STRATEGIC BUSINESS PLAN 2018-2022

KGRTC implemented its Business Plan for the period 2013 – 2017. Following its

expiry, there was need to develop a new strategy that would guide KGRTC through the

next five (5) years.

The new Strategic Business Plan (SBP) has been developed to address the challenges

and lessons identified from the performance audit of the previous Business Plan (which

included a stakeholder assessment), reduce the expectations gap of stakeholders, and

enhance delivery of the KGRTC mandate. The plan has also been designed to maximize

the KGRTC’s contribution to the attainment of national and international human capital

development agenda in the energy sector. It provides the Board of Trustees strategic

vision, mission and strategic themes or areas of strategic focus in the next five years in

alignment with the Trust Deed, Country Agreements and Memorandum of

Understanding (MoU) with ZESCO. It highlights how KGRTC will contribute, within

its mandate, to build capacity in energy technologies.

4. THE PLANNING FRAMEWORK

In formulating the SBP 2018-2022, the review of the Business Plan 2013-2017 was the

starting point to inform the development of the new Strategy. The reported performance

outcomes were validated using the identified tools or evidence of performance

achievements. Consultations were held with electricity utilities and collaborative

government agencies to get their perspective through regular stakeholder consultative

forums.

The Balanced Scorecard planning framework was used for a systematic identification

of what needed to be achieved. Central to the use of the Balanced Scorecard was the

adoption of the “systems thinking” approach where the starting point in planning was

the intended result.

The consulting process used was participatory with Management for in-depth analysis

of the desired strategic direction, identification of the pillars or strategic themes to guide

the strategic analysis, development of the corporate strategy map, Balanced Scorecard,

with clear targets, measurement parameters, initiatives and budgets.

The strategy formulation process also included an assessment of how both the external

and internal factors may shape the future operating environment. The situational

analysis that was utilized was the PESTEL which included, inter alia, political

developments, major economic events, relevant and significant social cultural

developments, technological developments in the energy sector and legal and policy

framework.



22 | P a g e

5. SITUATIONAL ANALYSIS

5.1 PESTEL Analysis

KGRTC conducted a situational analysis from a global, regional and national

perspectives using PESTEL (Political, Economic, Social, Technological,

Environmental, Legal), which will enable KGRTC to be cognisant of external factors

that might have an impact on how it conducts business and delivers on the mandate.

The situational analysis is one of the tools that was utilized to inform our strategic

planning process. PESTEL analysis was conducted under the following headings and

further detailed in Appendix iv:

i) Political Factors – Generally, political factors were assessed to be reasonably

positive in the SADC region3 and the rest of Africa. At national level, there have

been some political decisions that will have an impact on KGRTC’s ability to deliver

on its mandate and are going to be addressed in this strategic business plan. The

Government launched the 7NDP in 2017 which aims to grow and diversify the

energy sector. This presents an opportunity for KGRTC to diversify its training

programmes. However, the government also announced the policy shift to train

public service staff in-house. This may negatively affect the revenue inflows to

KGRTC as the government ministries contribute more than 50% of seminar and

conference participants.

Our strategic response to this factor is to increase stakeholder engagement and

formulate attractive conference packages to attract other sectors and ensure long

term financial sustainability on KGRTC.

ii) Economic Factors – At national level, the Zambian economy has performed well in

recent years, with strong growth and modest inflation. However, the economy came

under strain in 2015 and 2016 as external headwinds and domestic pressure

intensified. Gross Domestic Product (GDP) grew at 2.8% in 2015 and 3.3% in 2016,

much slower than the average 7.4% between 2004 and 2014 (2016, 2017 national

budget speech). At regional level, slow economic growth was noted. The SADC

region registered an estimated average growth rate of 1.4% in 2016 compared to

2.3% in 2015. The regions’ growth has been increasing at a decreasing rate since

post global crisis in 2009.

Electricity Tariffs – the drive towards cost reflective remains a top priority for the

member utilities in the SADC region. For KGRTC, cost reflectivity is a necessary

condition to ensure long term viability and sustainability of the mini hydropower

projects that will be constructed during the period of this Strategic Business Plan.

Further changes in some power utilities undergoing restructuring were also noted.

In addition, there has been an increase in the number of utilities in the region

developing their own training schools.

3Inside SADC, Secretariat Monthly Newsletter Issue 2, February 2018



23 | P a g e

Our planned strategic response to this threat (competition) is to revitalise and invest

in research and innovation in developing skills by investing in hands-on training

facilities and marketing.

This plan further also takes into account the effects of other economic variables

namely unstable inflation rates and unfavourable exchange rates.

To address the issue of unfavourable local lending rates, appropriate hedging

mechanisms and use of alternative modes of financing will be explored when

sourcing financing for the planned projects.

iii) Social Factors - There has been increased diversity of cultural backgrounds among

the people coming for training and conferences at KGRTC. We will continue to

employ an inclusive approach and respect for all in our business dealings.

iv) Technological Factors -The shift to renewable energy technologies (RETs) by

consumers might introduce some newer or updated technology to the country and

thus require KGRTC to update its training framework, practices and update or

acquire new skills. The implementation of the SNDP puts emphasis on RETs as

part of the energy mix.

Zambia’s Vision for Information Communication Technology (ICT) is to transform

Zambia into information and knowledge based society supported by increased

access to ICTs by all citizens by 2030. Achieving this vision will require effective

and efficient high level coordination of ICT interventions across the public service,

KGRTC inclusive.

At a regional level, a SADC Protocol on Science, Technology and Innovation also

promotes development and harmonisation of science and technology and innovation

policies and advocates investment in research and development. To maintain its

competitive advantage KGRTC will invest in integration of information and

communication systems and enhance the website into an interactive business portal

accessible by all regional members and the rest of Africa.

v) Environmental Factors - Environmental issues such as climate change, present

potential hazards to the public and the management thereof poses particular

challenges given that the issues fall within the purview of multiple stakeholders,

which creates a lack of ownership as to who is to lead. Strategies relating to the

protection of the public for these types of exposure scenarios will require relevant

government departments and other entities to cooperate and put in place a

framework for the protection of the public requiring a coordinated and cohesive

effort from all role players.

vi) Legal Framework – The existing legal framework creates an enabling environment

for the projects that KGRTC plans to undertake. Specifically, for the hydropower

and wind projects, the following pieces of legislation will have an impact on the

operations of the Centre:



24 | P a g e

a) Electricity Act of 1995 (amended 2003): The act was formulated to

administer the generation, transmission and distribution of electricity in

Zambia. The players providing this service are subject to regulation.

b) Rural Electrification Act of 2003: The act established the Rural

Electrification Authority (REA) and equipped it with a Rural Electrification

Fund. REA is responsible for implementing Rural Electrification Master

Plan by facilitating the creation and monitoring of the operations of rural

electrification organizations or companies. KGRTC will ensure that Chipota

Mini-hydropower Station complies with the provisions of the Rural

Electrification Act.

c) The Zambian Grid Code of 2006: The Zambia Grid Code was gazetted in

October 2013 with the objective of facilitating open and non-discriminatory

access to the transmission system in order to ensure that the goals of

liberalization of the electricity sector, primarily enhanced efficiency and

more rapid electrification, are achieved. With this open access provisions

under this code, KGRTC will be able to evacuate power into the main grid

at an agreed feed-in-tariff.

5.2 SWOT Analysis

The critical assessment of the environment in which KGRTC operates led to

identification of four elements that have influence on operations of KGRTC. These

forces have been summarized in a framework commonly called SWOT Analysis

detailed here below. This analysis presents external influences and trends; strengths and

weaknesses in the thematic areas which should be addressed to enable KGRTC to

achieve the desired energy training programmes.

The assessment presents the strengths, weaknesses and opportunities and is shown in

Table 5.



25 | P a g e

Table 5: KGRTC SWOT Card STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Sta

keh

old

ers

i. Track record of good

industrial relations

i. Recognition of KGRTC as a Centre of

excellence by APUA.

ii. Good partnerships and accreditation to

institutions such as ICH, IHA, SBB of

Canada, UNZA, CBU, ICSHP

iii. Secretariat of the African Hydro

Symposium

iv. Increased investment in the energy

sector in Africa.

v. Electricity supply industry

restructuring

i. Possible termination of

the MOU between

KGRTC and ZESCO

ii. Utilities establishing

their own training

Centres

Fin

an

cial

Ste

ward

ship

i. Proven record in managing

internal and funds from

cooperating partners.

i. Dependence on ZESCO for

emoluments.

i. Willingness by Sida to provide

financial guarantor for the small

hydropower project and Wind Farm

power project.

ii. Possibility by cooperating partners to

offer financial support to KGRTC

business development.

iii. Possibility to access funding under

GETFiT and REFiT programs.

iv. Possibility to access funding for

research and innovation

i. General rise in inflation

ii. Volatility of exchange

rates

iii. Economic instability in

the region.

iv. Possible droughts,

famine, floods,

epidemics and other

natural disasters



26 | P a g e

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Bu

sin

ess

Pro

cess

es i. Integrated Management

Systems implemented for

ISO 9001, ISO 22000 and

ISO 50001 Standards.

i. Not fully integrated ERP to

support HR, finance, and

business processes

Org

an

izati

on

al

Cap

aci

ty

i. Located within the

vicinity of one of the

biggest Hydropower

Stations in the country

ii. Grade One registered

institution with

TEVETA.

iii. Adequately qualified

personnel to deliver

quality services.

iv. State of the art

training facilities.

i. Reliance on ZESCO facilities

to conduct practical training

ii. Inadequate staff to support the

expanded business activities

for training, research and

facility maintenance.

iii. Lack of translation equipment

iv. Lack of multi lingual skills by

staff to deliver courses &

communicate in French &

Portuguese.

v. Limited Seminar/workshop

venues.

vi. Inadequate guest room

accommodation.

vii. Lack of staff accommodation.

i. Alternative energy sources such as

solar, thermal, wind and biomass

ii. Availability of translation

equipment.



27 | P a g e

5.3 Risk Management

KGRTC recognizes that risk management is an integral part of good management

practice. Consequently, as part of the strategic organizational analysis, a risk assessment

was conducted and it was determined that KGRTC was exposed to the following

strategic risks highlighted in Table 6 and further detailed in the Comprehensive

KGRTC Risk Matrix.

Table 6: Risks identified in 2018

ID Type of Risk Definition

1. Corporate Governance

Risk (Mainly fraud risk)

The risk that insiders (employees) will not act in the best

interest of other stakeholders of the Centre.

2. Strategy Execution Risk The risk that business strategy execution will fail.

3. Strategy Forecast Risk The risk that the Centre's strategy will be off the mark.

4. Innovation Risk The Risk that the Centre fails to adopt to the rapid pace of change and innovation

5. Competitive Risk The risk of a decline in competitive advantage due to

emerging new markets/customer preferences

6. Technology Risk The risk that the Centre’s technology strategy fails to

produce desired results

7. Change Management Risk The risks associated with organizational change

8. Program & Project Risk The risks associated with program & project failures

9. Marketing & Sales Risks The risk that marketing and sales forecasts and metrics will

fall short of expectations

10. Operational Risks

The prospect of loss resulting from inadequate or failed

procedures, systems or policies. Any event that disrupts business processes.

11. Security Risk The risk of information security incident (loss of data)

12. Liability Risk The risk that products, services or corporate execution leads

to legal liability issues.

13. Compliance Risk The risk of non-compliance with regulations and law.

14. Sustainability Risk The risk that ZESCO or any other sponsors withdraws its

support

15. Reputational Risk The risk of bad publicity emanating from the Centre’s

actions or inaction

16. Financial Risk The risk that the Centre is unable to raise sufficient capital

to fund operations.

17. Economic Risk The risk of collapse of the global financial system or the

financial system of a country.

18. Political Risk The risk that the political environment in the region will turn

hostile



28 | P a g e

5.3.1 Analysis of Risks

Figure 1: KGRTC Risk Matrix

IMP

AC

T

LOW MEDIUM HIGH

HIG

H

Change

management Risks

Liability Risks

Program & Project

Risk

Strategy Execution

Risk

Financial Risk

ME

DIU

M

Marketing and

Sales Risk

Innovation Risk

Sustainability Risk

Compliance Risk

Economical Risks

Technology Risk

Strategy Forecast

Risk

Fraud Risk

Reputational Risks

Competition

Risk

LO

W

Political Risk

Security Risks

Operational risks

LOW MEDIUM HIGH

LIKELIHOOD OF OCCURENCE

Key to Colour Code

Colour Green aAmber Red

Grading Acceptable Issues Unacceptable

The eighteen (18) categories of risks identified for KGRTC have further been

streamlined into the following three main themes based on how they are perceived to

affect KGRTC.

5.3.1.1 Environmental Risks: Risks arising from the environment in which KGRTC

operates. This relates to the type of clients, the laws and regulations peculiar

to the Centre and the necessary skill set required for the Centre to function.

5.3.1.2 Process Risks: Risks identified emanating from the processes which the

Centre undertakes to achieve set objectives. The majority of these risks under

this category is operational in nature and therefore requires that the Centre’s



29 | P a g e

management is fully involved to ensure that these risks are well managed as

part of their day-to-day managerial activities.

5.3.1.3 Information for Decision Making: Risks which are directly linked to the

decisions made by Management or the lack of. Risks such as strategic

execution, Strategic forecast risks, financial risks, marketing and sales risks

fall under this theme.

5.3.2 Risk Mitigation Strategies

KGRTC has identified four types of risk mitigation strategies that hold unique and

closely relate to the risk profile, namely:

a) Risk Limitation: This strategy will be employed by the Centre to limit risk

exposure by taking the following actions:

i) Increase the revenue sources from Training, Conferences and Consultancy

services and ensuring that costs especially direct costs, are minimized

through efficient use of consumables, careful planning of activities to

achieve economies of scale.

ii) Explore more avenues of increasing the customer base especially now with

the increased government infrastructure investments in mini hydro power

stations and cleaner energy sources such as solar, and wind.

iii) Explore more ways of accommodating the utilities drive to train more staff

in-house by ensuring that scheduled and tailor-made courses are customized

to meet schedules which are more convenient to the clients.

iv) Source for funding for the KGRTC Strategic Business Plan from both

government and the international cooperating partners.

b) Risk Avoidance: This will be used to eliminate any exposure (activity) that gave

rise to the risk. A combination of tightened internal controls and constant

monitoring of the same will ensure that risks arising from the operations,

compliance, system or security failures are avoided.

c) Strategic Exploitation of Emerging Opportunities: KGRTC has in the last

few years forged and signed MOUs with APUA which has meant that courses

run traditionally in English had to be offered in other languages such as French

and Portuguese. With this in mind, new opportunities have arisen for KGRTC to

build on its competencies and penetrate further into both French and Portuguese

speaking markets.

In light of this development, the Centre will invest in the translation equipment

as a matter of urgency, so that the Centre can reduce on the high costs incurred

when paying for translators and hire of translation equipment.



30 | P a g e

d) Promoting a Culture of Cohesion: To cartel the risks arising from strategy

execution risks, forecast risks and innovation, KGRTC will ensure that there is

a culture of cohesion amongst its employees so that planned activities are

achieved on time with minimal complexities. This will communicate the

importance of consistently checking the present status of the project against

scope, limitations, methodologies, exclusions, mitigation plans and budget, to

ensure that there is diligent compliance and that all risks anticipated are being

mitigated at their critical stages.

From the risk assessment above, the Training Centre shall prioritize and establish

useful means for defining and calibrating change readiness thereby taking steps

to mitigate the likely causes and effects of risks with a high probability and

impact on the activities of the Centre.



31 | P a g e

6. STRATEGIC BUSINESS PLAN FOR 2018 – 2022

6.1 KGRTC Vision, Mission and Core Values

The Vision Statement

“To Create Enhanced Capacity for Stakeholders in Energy Technologies by Training at least

2,500 Course Participants in Africa by 2022”

The Mission Statement

“To Provide a Learner-Centred Environment for the Acquisition of Skills and

Competencies in Energy Technologies”

Our Motto

“Your Home for Energy Training and Conferences”

Our Core Values

The value statements below reflect what we stand for and how we will conduct ourselves in the

execution of this strategic business plan. The core values have been reviewed and enhanced to

meet the mission and vision of KGRTC as follows:

1. Integrity : We up-hold professional and ethical business practices. We

will ensure honesty, trustworthiness, reliability and zero

tolerance to corruption and fraudulent practices.

2. Team Spirit : We value teamwork. We believe team spirit will sustain

efficiency and effective quality service delivery. We will

recognize the contribution and value of individuals in a team

and encourage unity of purpose.

3. Learning and

Innovation

: We believe in continuous learning and capacity

enhancement. We are committed to seeking new ways to

advance knowledge, solve problems, improve our professional practice and expand on our successes.

4. Corporate Social

Responsibility

: We are committed to being a good corporate citizen and we

will participate in community development and environmental protection.

5. Quality : We believe in excellent service delivery and customer

satisfaction. We will employ all available resources to meet

client’s needs and demands.

6. Gender Equality : We recognize the diverse experiences of people of all

genders. We believe in full and inclusive participation by all

and that every person has the right and responsibility to contribute their talents and skills.



32 | P a g e

6.2 Strategic Themes for the Strategic Business Plan 2018 – 2022

In the five years of the Strategic Business Plan 2018 – 2022, the strategic themes shall be as

follows:

a) Effective Strategic Partnership

The objective of this strategic theme is to establish and collaborate with key institutions

in order to diversify funding sources and enhance the quality of services offered.

The Centre will achieve this by engaging more cooperating partners and new partners.

b) Efficient & Effective Internal Processes (Operational Excellence)

The objective of this strategic theme is to transform KGRTC into a Learning and

Development Centre of Choice in energy technologies and a leader in the provision of

conference and accommodation facilities.

This will be achieved by operational efficiency and effectiveness, and increased

customer satisfaction in the provision of services. KGRTC will aim to provide these

services to meet customer expectation in a cost-effective manner through continuous

improvement.

c) Financial Sustainability (Business Growth)

The objective of this strategic theme is to improve the financial performance of KGRTC

and diversify the revenue sources in order to achieve financial sustainability by 2030.

This will be achieved through the realized investment projects in the Small Hydropower

Stations, Wind Power Generation and increased capacity through the New Learning

Centre and additional guesthouses from ZESCO. Two of the small hydropower projects

(Chipota and Kafue Lower) are estimated to be completed and commissioned by 2022

while the guesthouses are expected to be handed over to KGRTC in a phased approach

commencing in 2018.

The success of KGRTC will be about achieving both the financial and non-financial

metrics and parameters as detailed in the balanced scorecard. The Centre being a public

interest institution will always enjoys some level of external support in order to fulfill

its mandate. Complete financial sustainability is a long-term objective.

d) Effective Human Capital Development

The aim of this strategic theme is to ensure that our staff undergo continuous

transformation to match up to the Centre‘s strategic needs.

The Centre will achieve this through the training and further development of existing

employees. This method will involve features like trainings, personal development

courses, seminars and other types of activities aimed at increasing the knowledge and

experience of the workers. The increase in the knowledge and experience capital of the

various employees will benefit KGRTC through increased productivity.

The specific targets under each of the strategic themes are highlighted in the Balanced

Scorecard depicted under Section 6.6.



33 | P a g e

6.3 Strategic Objectives and KPIs for the 2018 – 2022 SBP

Over the course of the next five years, KGRTC will implement various strategic

initiatives and programmes in line with our mandate in order to achieve the following

broadly stated strategic objectives:

Stakeholder Perspective

1. To Enhance effective collaborations with other Institutions

2. To Ensure Timely engagement of stakeholders

3. To Ensure quality and competitiveness of services offered

4. To Ensure a conducive business environment

5. To Enhance Energy Research and Analysis

Business Processes Perspective

6. To Increase operational efficiency and effectiveness

7. To Enhance Compliance Monitoring System

Financial Perspective

8. To increase Infrastructure Investments

9. To Ensure Prudent Management of Resources

10. To Ensure Robust Revenue Collection Mechanism

Organizational/People Perspective

11. To Retain Skilled, Motivated and Productive Employees

12. To promote positive performance culture

13. To Continuously develop technical and managerial skills and competencies

6.4 Strategy Map for the 2018 – 2022 SBP

To translate our strategy into action, the above strategic objectives have been linked

together in a strategy map to show the cause-and-effect relationships between the

performance drivers and the desired outcomes across the perspectives. The strategy

map in Figure 2 describes how we expect to create value for KGRTC and for our

customers/stakeholders.

6.5 Corporate Balanced Scorecard

KGRTC has adopted the Balanced Scorecard methodology for strategic planning,

performance measurement to implementation and monitoring of its strategy. A balanced

scorecard is a performance metric used in strategic management to identify and improve

various internal functions of an institution and their resulting external outcomes. It is

used to measure and provide feedback to organizations on one hand, as well as a

planning tool on another hand. The Balanced Scorecard approach will facilitate the

cascading down and communication of the strategy to the entire organization and its

stakeholders.

The strategic priorities have been outlined on the KGRTC Balanced Scorecard in

Section 6.5.

34 | P a g e

ST

AK

EH

OL

DE

R

PE

RS

PE

CT

IVE

Wh

at

We

Wan

t T

o

Acc

om

pli

sh

INT

ER

NA

L

PR

OC

ES

SE

S

How

We

Pla

n T

o A

ccom

pli

sh I

t

FIN

AN

CIA

L

PE

RS

PE

CT

IVE

PE

OP

LE

PE

RS

EP

EC

TIV

E

Figure 2: KGRTC Strategy Map

To increase Infrastructure Investments

Timely engagement of

Stakeholders

EFFECTIVESTRATEGIC PARTNERSHIPS

Ensuring quality and

Competitiveness of Services Offered

EFFICIENT AND FFECITIVE

INTERNAL SYSTEMS

Ensure Prudent

Management of Resources

Ensure Adequate and Diversified

Funding Sources for The Institution

Ensure Robust

Revenue Collection Mechanism

EFFECTIVE HUMAN CAPITAL DEVELOPMENT & MANAGEMENT

To Promote Positive

Performance culture

To Retain Skilled, Motivated

And Productive Employees

Enhance Project

Management System

FINANCIAL SUSTAINABILITY

Enhance Compliance Monitoring System

Ensure a conducive

Business Environment

Enhance Effective

Collaborations with Other Institutions To Enhance

Energy Research and Analysis

Increase Operational Efficiency by

Automated and Integrated

Business Processes

Using an appropriate ERP

Continuously develop

Technical and managerial

Skills and competencies

To Create Enhanced Capacity for Stakeholders in Energy Technologies

by Training at leats2,500 Course Participants In Africa by 2022



35 | P a g e

6.6 The KGRTC Balanced Scorecard for the 2018 – 2022 SBP

Perspective Strategic

Objectives Measures

Baseline:

2017 Targets

Strategic

Initiatives

Strategic

Funding

Sources

Funding

Position Resp.

ST

AK

EH

OL

DE

R P

ER

SP

EC

TIV

E

1. Enhance

Effective

Collaboration

s with Other

Institutions

Number of Active MoU’s 7

Maintain 100% of

Active MoU’s

Integration

of identified

business

processes

Internal Confirmed

TM

Number of Joint Courses Conducted

with other Institutions 3 Courses

Hold at least 5

courses per year TM

Number of collaborations on energy

research 0 1 per year TM

Number of Consultancy Partnerships

with other Institutions 1

At least 2

successful consultancy

activities

undertaken per

year

TM

2. Ensure

Timely

Engagement

of

Stakeholders

Number of Regional Needs

Assessments undertaken peer year 2 At least 4 per year M & PRM

Stakeholders Forum Meeting held 1 1 meeting annually TM

Number of International Exhibitions Attended

2 At least 4 per year M & PRM

Number of Local Exhibitions Attended 2 At least 4 per year M & PRM

Open Days conducted 1 At least 2 per year M & PRM

Number of Employee Consultative

meetings 2 At least 4 per year Registrar

3. Ensure

Quality and

Competitiven

ess of Services

Offered

Number of Benchmarking Activities

undertaken 1 1 in 3 years

M &

PRM/TM

Number of Curriculum Review and

development

1 in 3

years 1 in 3 years TM

Number of Marketing Surveys 2 At least 2 per year M & PRM



36 | P a g e


Objectives Measures Baseline: 2017 Targets

Strategic

Initiatives

Strategic

Funding

Sources

Funding

Position Resp.

ST

AK

EH

OL

DE

R P

ER

SP

EC

TIV

E

[CO

NT

’D]

4. Ensure

optimal and

conducive

Business

Environment

Number of client feedback

issues closed 85% 100% M & PRM/TM

% of Corporate Social

Responsibility Budgeted

utilized

105% 100% M & PRM

Compliance to statutory and

regulatory requirements 100% 100% compliance Bursar/Registrar

Compliance in meeting agreed

business terms 80% 100% compliance Bursar/Registrar

Number of collaborations on

energy research 0 At least 1 per year TM

% availability of guest rooms

and laboratories 75%

100% availability

of guest rooms

and laboratories

based on the

number of planned

days of

availability per

year

Replacement

of Asbestos

Potential:

Cooperating

Partners

Unfunded TM

5. To Enhance

Energy

Research

and Analysis

Number of active research

programs 0 At least 1 per year TM



37 | P a g e

Perspective Strategic Objectives Measures Baseline:

2017 Targets

Strategic

Initiatives

Strategic

Funding

Sources

Funding

Position Resp.

INT

ER

NA

L P

RO

CE

SS

ES

6. Increase Operational

Efficiency and

Effectiveness by

Automated and

Integrated Business

Processes using an

appropriate ERP

Number of processes

automated 17 50

Implement a

Computerized

Maintenance

Management

System by 2022

Internal Funded

All HoD’s

Number of processes

integrated 5 15

Transform the

website into an e-

Business Portal

Internal Funded

All HoD’s

7. Enhance Compliance

Monitoring System

Implementation rate

of action plans for

external and internal

audit findings.

70% 100%

Implement Governance,

Risk and

Compliance

Solution by 2019

Internal Funded

All HoD’s

Implementation rate

of action plans for ISO IMS.

91% Est.

2017 Audits 100%

All HoD’s

Implementation rate

of action plans for

Stakeholders Forum.

98% 100%

TM

Number of Project

Management Systems

prior to

commencement of

each investment

project

0

1 PIU established and

functional for 10 MW Sida Small Hydropower Station

Director/

TM

0


functional for 200 kW

Chipota Falls Mini Hydropower Station

0


functional for 13 MW

ZESCO Small Hydropower

Station

0


functional for 7.5 MW

KGRTC Wind Farm.



38 | P a g e


Objectives Measures

Baseline:

2017 Targets Strategic Initiatives

Strategic

Funding Sources

Funding

Position Resp.

FIN

AN

CIA

L P

ER

SP

EC

TIV

E

8. To increase

Infrastructu

re

Investments

% Completion

of Construction

of the New

Learning Centre

0%

100% by 2020 of Phase One of the

New KGRTC Learning Centre

Mobilize K80M for

construction

Financiers

/Cooperating

Partners

Potential:

MoHE

Director/

TM/

Bursar

100% by 2021 of Phase Two of the

New KGRTC Learning Centre Mobilize K40M

Financiers

/Cooperating

Partners

Potential:

MoHE

100% by 2022 of Phase Three of

the New KGRTC Learning Centre Mobilize K40M

Financiers

/Cooperating

Partners

Potential:

MoHE

% Completion

of Construction

of Power

Stations

0%

100% by Dec. 2021 of 13 MW

KGL Small Hydropower Station

Conclude PPA and

SPV-O&M Structure Internal Confirmed

Director/

TM/

Bursar

100% by Dec. 2022 of 200 kW

Chipota Falls Mini Hydropower

Station

Provide Co-funding for

construction of Power

Station and conclude

the PPA and SPV-

O&M

Internal Confirmed

10% by 2022 of 10 MW Sida

Small Hydropower Station-

Operation and Maintenance by

2020 Mobilize Funding for

construction

Financiers/Coope

rating Partners

Potential:

Sida

10% by 2022 of 7.5 MW KGRTC

Wind Farm-Operation and

Maintenance

Financiers/Coope

rating Partners

Potential:

Sida

% Completion

of Building the

Specialized State-of-the-art

Renewable

Energy

Laboratory

0% 100% Completion by Dec 2019 Mobilize Funding for construction and

purchase of equipment

MoHE, Sida, APUA, and

Internal

Potential Director/

TM



39 | P a g e


Objectives Measures

Baseline:

2017 Targets

Strategic

Initiatives

Strategic

Funding

Sources

Funding

Position Resp.

FIN

AN

CIA

L P

ER

SP

EC

TIV

E

8. To increase

Infrastructure

Investments

(Cont’d)

Net Income from ZESCO Guest

Houses (Operate and Manage) 0 2018: K63,000

Mobilize Funding

for construction and

purchase of

equipment

MoHE,

Sida,

APUA,

and

Internal

Potential Confirmed

0 2019: K475,000

0 2020: K764,000

0 2021: K1,189,000

0 2022: K1,413,000

Number of new courses conducted in

Renewable Energy 2 2 courses per year

Deploy a Distance

Learning Platform

for online courses

Internal Confirmed

TM

Number of consultancy services undertaken 1

At least 2 successful consultancy activities

undertaken per year

None

TM

% of Net Income from consultancy

services against total internally

generated income

2% ≥2% per annum None

TM

Number of new clients introduced 3 5 new clients per

year None

TM/M &

PRM

Proportion of Internally Generated

Income against Total Income 44% 51% annually None

Director

% of repeat business per annum 50% 50% None TM/M &

PRM

9. Ensure

Prudent

Management

of Resources

Cost to Internally Generated Income

Ratio 2.68 1.9 by 2022 None

All HoD’s

Asset Turnover Ratio 0.1 >1 by 2022 None Director

Acid Test Ratio 1.18 >1 maintained None Director

Internally Generated Income Growth 28% 10% per year None Director

10. Ensure

Robust

Revenue

Collection

Mechanism

Debtor Days 91.7 Days ≤30 days None Bursar



40 | P a g e


Objectives Measures Baseline: 2017 Targets

Strategic

Initiatives

Funding Sources for

Strategic Initiatives

Funding

Position Resp.

PE

OP

LE

PE

RS

EP

EC

TIV

E

11. To Retain

Skilled,

Motivated

and

Productive

Employees

Labor Stability Index 97% 100% None N/A N/A Registrar

Internally generated Income

per capita, per year

K290,000 per

capita per year 100% None N/A N/A All HoD’s

Employee Satisfaction Rate 97% Est.2017 100% None N/A N/A Registrar

12. To promote

positive

performance

culture

Number of Disciplinary

Cases 1 per year 0 None N/A N/A Director

Average Performance

Appraisal Rating

65% 70% None N/A N/A Director

Number of team building

Initiatives 9 12 per year None N/A N/A Director/Registrar

13. Continuously

develop

technical and

managerial

skills and

competencies

% of HRD Budget actualized 80% ≥80% of HRD

Budget

Training in

French and

Portuguese

Internal Confirmed Registrar

% of people trained under the

HRD Plan 80%

≥80% of the

HRD Plan None N/A N/A Registrar



41 | P a g e

6.7 Overall Target Performance for the 2018 – 2022 SBP

The overall target of KGRTC in the next Strategic Business Plan period will be to

achieve a performance score of at least 70% by the end of 2022. The proposed

performance rating with related sanctions and incentives is as follows:

Rating Score (%) Sanctions/Incentives

Good >70

As per Performance Bonus

Policy Moderate 50-70

Below Average <50

6.8 Implementation of the 2018 – 2022 SBP

For KGRTC to attain its vision of Enhancing Capacity for Stakeholders in Energy

Technologies by Training at least 2,500 Course Participants in Africa by 2022 and play

its role in national and regional social-economic transformation, Management will

endeavor to execute and achieve the targets in the plan timeously through annual

operational plans.

The Management will be accountable for the achievement of the strategic objectives

under the supervision of the Board of Trustees and through its Committees.

Management will report to the Board of Trustees on a quarterly basis.

6.9 Key Assumptions/Critical Success Factors

The effective implementation of this SBP is dependent on the following key

assumptions:

a) Continued funding support from ZESCO

b) Stable macro-economic environment

c) Cooperating Partners supportive of KGRTC

d) Availability of funds to finance the construction of planned power stations and

the New Learning Centre.



42 | P a g e

7. MARKETING PLAN

7.1 Stakeholder Analysis and Expectations

The Stakeholder map in Figure 3 presents a picture of virtually all KGRTC

stakeholders. The stakeholder map shows the level of influence and their impact on the

Centre.

Figure 3: Stakeholder Map

HIGH

PRIMARY PRIORITY TOP PRIORITY

1. Regulatory Bodies

Zambia Revenue

Authority

Tourism Board

Registrar of Societies

Workers

Compensation

NAPSA

Strategy: Meet their needs

and engage periodically.

1. ZESCO

2. Board of Trustees

3. Management and Staff

4. Customers

5. Financiers

6. Cooperating Partners

7. TEVETA

8. Government of the

Republic Zambia

Strategy: Focus efforts on this

group, engage and consult

regularly

LOW

LOW PRIORITY SECONDARY PRIORITY

Strategy: Do nothing

These are potential

supporters/goodwill

ambassadors

Suppliers

Community

Strategy: Show consideration

Make use of interest

through involvement in

low risk areas

Keep informed and

consult on interest area

LOW HIGH

As can be seen from the map, our stakeholders have been grouped into four categories

depending on the level of influence and impact on the Centre.

Interest/Impact of Stakeholders

Infl

uen

ce/P

ow

er o

f st

ak

ehold

er



43 | P a g e

Those falling in the primary priority have high influence but low impact on the training

Centre. Those falling in the top priority category have high influence and high impact

on the training Centre.

Customers and course participants fall under this category due to their primary role in

the business while ZESCO and the Board of Trustees play the role of owners and

oversight. These relationships are carefully nurtured and monitored for any changes.

The same goes for the secondary priority stakeholders. They are monitored for any

changes in influence.

To establish the expectations of stakeholders, interactive stakeholder consultations were

conducted with different groups depending on their market segment. The Center will

continue to employ the same proactive and interactive stakeholder engagement model

to actively engage with stakeholders on an ongoing basis of respect, openness and trust.

7.2 Centre’s Customers

The customers in the KGRTC service area come from power utilities, water utilities,

government ministries, mining and manufacturing companies. The KGRTC customers

can be divided into two broad segments on the basis of product lines. The Centre has

two major product lines: training and consultancy, and conferencing. Each event

product relies on accommodation and catering provided at the Centre. Below is a table

showing the current portfolio of customers.

Table 7: KGRTC’s Customers

Training and Consultancy Conferences

i. Electricity Power Utilities and

Subsidiaries

ii. Water Utilities

iii. Rural Electricity Authorities

iv. Energy Regulations Authorities

v. Manufacturing Companies

vi. Mining industry

vii. Insurance Companies

viii. Government Ministries and

Departments

ix. Public Sector Institutions

i. Government Ministries and

Departments

ii. Non Governmental

Organisations (NGO's)

iii. Donors and national

Cooperating Partners

iv. Banks

v. Local and Foreign Training

Institutions

vi. Private and Public Companies

vii. International Organisations



44 | P a g e

7.3 Business Geographical Coverage

KGRTC covers the whole African continent. The potential market area consists of 42

African countries, but the current actual participation is 26 countries. This shows there

is still scope for growth in geographical spread. The participant numbers from the

participating countries represent a smaller market share than existing demand. There is

business potential to undertake further market penetration in the current market.

7.4 Competition Risk and Potential Market

In analysing the current and future markets of the Centre, it was noted that some

countries have national power training Centres whilst other utilities have plans of setting

up their own training centres. This is likely to create competition for KGRTC.

In Zambia, KGRTC commands a considerable share of the market in in-service energy

training. ZESCO has been a promoter and supporter of KGRTC. The Centre has a

strong foothold in the energy sector in Zambia. The reputation and credibility of the

Centre is high in its customer segments.

Chart 1 depicts participation by country for the period 2013 to 2017. The chart shows

countries that sent more than 50 course participants to the Centre during the period.

Chart 1: Participation by Country Chart 2: Participation by Region

From the pie chart, Zambia recorded the highest participation with 977 participants,

followed by Malawi with 277 participants. The high participation from Malawi can be

attributed to the unbundling of the national utility ESCOM which led to increased

demand for capacity building. Angola was third in participation with 198 participants.

The increased participation was also as a result of unbundling of the national utility,

ENE. Angola was a major beneficiary of the APUA scholarship scheme.

In East Africa, Uganda and Rwanda are the most promising markets. The total number

of course participants from East Africa was 440 with Uganda contributing the largest

number of participants at 174.

Zambia, 977

Malawi, 277

Angola, 198

Uganda, 174

Tanzania, 117

Swaziland, 94

Ghana, 82

Rwanda, 76Kenya, 73 Botswana, 53

Congo DR, 53



45 | P a g e

In Southern Africa, the Centre has attracted participants from non-English speaking

countries. These include Mozambique, Angola and Congo DR. The three countries have

huge capacities for hydropower generation. Consequently, the need for training has been

growing creating opportunities for KGRTC. For the period 2013 to 2017, KGRTC has

trained 292 participants from these three non-English speaking countries in skills across

the electricity supply chain in Generation, Transmission and Distribution courses.

KGRTC will endeavour to invest more in Portuguese and French languages to

consolidate this market.

West Africa has huge potential for training not just in hydropower but especially courses

on power trading and the non-generation courses. The APUA – ANCEE program will

in the shorter term assist in marketing the Centres of Excellence and ensure participation

from West African utilities on the non-French speaking Centres of Excellence are

increased. Through the West Africa Power Pool (WAPP) growth prospects will spike

largely based on energy needs of Nigeria and rapidly growing mining sector in West

Africa.

7.5 Marketing Strategies

Marketing and sales strategy will be based on market penetration/expansion and market

consolidation. This will entail active engagement of current markets to drive business

growth while expanding into new markets. New products will be launched to support

the growth in both numbers and revenue. Table 8 shows the summary initiatives that

will be undertaken under each strategy, which are elaborated on below.

Table 8: Marketing Strategies

Market Consolidation Initiatives Penetration/Expansion Initiatives

i. Provision of very high quality teaching

and learning standards at all times

ii. Using highly motivated, competent and experienced staff

iii. Treating training participants as the key

stakeholders of the Centre, at all times

and seeking their feedback on the

operations and service provided by the Centre

iv. Undertaking Customer satisfaction

surveys

v. Client focused Advertising

vi. Continuous engagement with clients to understand their needs

vii. Corporate Social Responsibility

viii. Competitive pricing

i. Introduction of more courses in

renewable energies

ii. Introduction of Open Distance

Flexible Learning courses

iii. Participating at international

trade shows

iv. Introduction of promotional

packages

v. Holding open days and other

promotional events

vi. Development of demand driven

courses



46 | P a g e

7.5.1 Advertising

The Centre will continue advertising the training, conferences and

accommodation facilities in local and foreign journals, magazines and

newspapers, electronic media, KGRTC electronic newsletter, website and

mobile applications. These channels will help to promote the Centre’s services

to a wider market. KGRTC will aggressively utilize social media platforms such

as Face book, YouTube and LinkedIn to engage existing former and future

clients.

In addition, KGRTC will continue to advertise through the use of marketing

literature such as the training prospectus, flyers and brochures. These forms of

advertising are expected to generate positive results for now and the future.

7.5.2 Marketing Literature

KGRTC Training prospectus, Diaries, Conference and Training brochures,

Calendars, and other marketing and promotional instruments will be produced

and distributed to clients and stakeholders at different events and activities,

physically, by postal services, courier and electronically for promotional

purposes. This will be done on an annual basis and as regularly as possible.

7.5.3 Promotional Activities

These will include the distribution of Calendars, Dairies, and other branded

promotional materials. The Centre will continue to participate in high value

events such as sports, conferences, exhibitions, international visits and market

surveys in order to enhance its presence both locally and internationally.

7.5.4 Corporate Social Responsibility

KGRTC will fully utilize the approved CSR Policy and the allocated funding

annually to engage the communities and meet some of the social needs for

different target groups. Whenever possible, KGRTC will partner with the

community in Namalundu to engage in activities that add value to the

community. KGRTC will continue being a responsible corporate citizen.



47 | P a g e

8. OPERATING PLAN

8.1 Operating Programme

The normal operating hours for KGRTC will be from 8:00 hours to 17:00 hours Monday

to Friday. However, certain classes of employees that work shifts will work beyond

17:00 hours, and during weekends and public holidays.

Table 9: Business Operating Hours

Per Day Per Week Per Month Per Annum

Morning:

08:00 hours to 13:00

hours

Afternoon:

14:00 hours to 17:00

hours

Total operating hours: 8

Monday to

Friday:

8 hour shift

Saturdays,

Sundays and

Public

holidays:

Closed

Total operating hours: 40

160 hours

(Estimated

operating

days per

month)

280 days

(this

figure

takes

account of

public holidays)

8.2 Current and Envisaged Services to be Offered

KGRTC will continue to offer services in the four (4) key areas of Training,

Conferences and Seminars, Accommodation and Catering as outlined in Section 1.4.

The Strategic Business Plan 2018 – 2022 focuses on increasing capacity in service

delivery through the proposed investments as outlined in Table 10.

Table 10: Additional Facilities from the Proposed Investments

Training a) Construction of the Small Hydropower Stations for training

and income generation

b) Laboratories for demonstrations

Conference and

Seminars

c) 2 new conference rooms (New Learning Centre)

d) 1 Auditorium (New Learning Centre)

Accommodation

Facilities

e) 40 new guest rooms (New Learning Centre)

f) 56 new guest rooms (Siavonga, Itezhi Tezhi & Kafue

Gorge Guest Houses to be managed by KGRTC on behalf

of ZESCO)

Catering Facilities g) 1 New restaurant (New Learning Centre)

Other Services h) 1 New Gymnasium (New Learning Centre)



48 | P a g e

8.3 Operating and Utilization Capacity

Table 11: Operating and Utilization Capacity

Service Type Current Envisaged

Africa Conference Hall 100 delegates 100 delegates

Kilimanjaro Board Room 18 delegates 18 delegates

New Learning Centre (2 Conference

Rooms) - 60 delegates

New Learning Centre (1 Auditorium) - 150 delegates

Kariba Room 30 delegates 30 delegates

Victoria Room 30 delegates 30 delegates

Computer Based Training Room 20 delegates 20 delegates

Executive Room 12 Rooms 12 Rooms

Standard Rooms 56 Rooms 56 Rooms

Twin Bedded Rooms 9 Rooms 9 Rooms

Executive Rooms (New Learning Centre) - 9 Rooms

Standard Rooms (New Learning Room) - 30 Rooms

Presidential Room (New Learning

Centre) - 1 Room

ZESCO Guest Houses - 56 rooms

Lule Restaurant 55 delegates 55 delegates

Nidelva Restaurant 26 delegates 26 delegates

Oasis Mingling Area 30 delegates (open

space)

30 delegates

(open space)

Gymnasium 15 delegates 15 delegates

Hire of transport 7 vehicles 10 vehicles



49 | P a g e

8.4 Power Projects and New Learning Centre

Table 12: Investment Projects [Power Projects an New Learning Centre]

Project Name Current

Capacity

Envisaged

Capacity

[MW]

Estimated

Cost

(US$)

Envisaged

Date of

Commissioning

Chipota Mini Hydropower

Station

0 0.2 1,779,000 1st Half of 2021

Kafue Gorge Lower Small

Hydropower Station

0 13.0 0 1st Half of 2022

KGRTC Small

Hydropower Station

0 10.0 36,354,664 After 2022

KGTRC Wind Farm 0 7.5 12,000,000 After 2022

SUB TOTALS 30.7 50,133,664

New Learning Centre

25,628,694

To be

completed in 3

phases with 1st

unit

commissioned

in 2020.

i. Guest Rooms 0 40

ii. Meeting

Rooms

0 60 delegates

iii. Auditorium 0 150 delegates

GRAND TOTALS 75,762,357

8.5 Other Fixed Assets Requirements 2018-2022

Table 13: Additional Capital Items (other than Power Projects and the New

Learning Centre)

Item 2018 2019 2020 2021 2022 Total

Machines

/Equipment/Tools

4,037,000 4,037,000

Furniture and

Fittings

375,000 375,000

Motor Vehicles 1,607,000 1,607,000

TOTAL 6,019,000 6,019,000

8.6 Projected Revenue and Expenditure Summary 2018 – 2022

Table No. 14: Projected Revenue and Expenditure 2018 – 2022

SUMMARY INCOME STATEMENT

2018 2019 2020 2021 2022

K K K K K

Total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306

Total

expenses (55,114,858) (59,359,984) (63,989,775)

(70,110,760) (105,526,030)

Surplus/

(deficit) 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276

For Detailed Financial Projections See Appendix VI and VII



50 | P a g e

9. GOVERNANCE STRUCTURE

9.1 Board of Trustees

The Centre is governed by a Board of Trustees with representation from Zambia, as the

host country, Malawi, eSwatini, Uganda, Tanzania and Zimbabwe. Zambia is

represented on the Board by ZESCO, the Ministry of Energy (MoE), the Ministry of

Higher Education (MoHE), and the University of Zambia (UNZA). Malawi is

represented through the Electricity Supply Corporation of Malawi Ltd (ESCOM), The

Kingdom of eSwatini through the eSwatini Electricity Company (EEC), Uganda

through the Uganda Electricity Transmission Company Limited (UETCL), Tanzania by

the Tanzania Electric Supply Company (TANESCO) and Zimbabwe by Zimbabwe

Electricity Supply Authority (ZESA).

The Director of Generation at ZESCO presides as the Chairperson of the Board of

Trustees. The Director of Human Resources and Administration also represents ZESCO

on the Board of Trustees.

The Board of Trustees operates through three (3) Committees, namely the Finance and

Administration Committee, the Audit and Risk Committee and the Technical

Committee. The KGRTC Board of Trustees has developed and documented Charters

which guide the Board of Trustees and all the Board Committees. The Board holds its

meetings once every quarter.

KGRTC Financial Statements are audited at the end of each financial year by an

independent external auditor appointed by the Board of Trustees. In addition internal

audit services are provided through the office of the Audit and Risk Manager.

SGS of South Africa conducts the annual surveillance audits under the Integrated

Management Systems implemented for ISO 9001 Quality Management, ISO 22000

Safety Management and ISO 500001 Energy Management Systems Standards. Internal

audits are conducted once a year by KGRTC employees trained in ISO Management

Systems.

All KGRTC assets are covered by insurance. The insurance covers various risks for both

life and non-life.

9.2 The Committees of the Board

9.2.1 Technical Committee

The purpose of the Technical Committee is to advise the Board of Trustees

regarding relevant matters bearing on the quality and reputation of the Centre’s

training programmes and marketing activities. This shall include the

establishment of appropriate training standards and marketing policies.



51 | P a g e

9.2.2 Finance and Administration

The purpose of the Finance and Administration Committee is to assist the

Board in fulfilling its functions relating to finance, human resources and

governance for the Institution. The Committee is also charged with the

responsibility of assisting the Board in assessing and making

recommendations regarding Board effectiveness and providing direction

regarding staff and senior management development.

9.2.3 Audit and Risk Committee

The purpose of the Audit and Risk Committee is to assist the Board of Trustees

in fulfilling its oversight responsibilities for the financial reporting process,

the system of internal control, the audit process and the Centre's process for

monitoring compliance with laws and regulations and the code of conduct.

9.3 Management and Staff Establishment

9.3.1 The Director

The Director is the Chief Executive Officer of the Training Centre. The office

is responsible for providing leadership to position KGRTC at the forefront of

the industry in line with its mission and objectives. The position oversees

KGRTC operations to ensure production efficiency, quality service, and cost-

effective management of resources.

In the execution of the SBP, the Board of Trustees delegates some of its

functions to the Management through the Director. The Director is supported

by five (5) Heads of Department.

9.3.2 Head – Training and Consultancy

The Head Training and Consultancy will be deputy to the Director and will

be responsible for the following:

a) Ensuring that courses are developed and run according to agreed plans

and standards.

b) Spearheading consultancy services for research, design, development

and demonstration.

c) Management Representative of the Integrated Management System to

ensure that KGRTC operations are in line with the system and approved

processes.



52 | P a g e

9.3.3 Head – Administration

The Head Administration is responsible for the Human Resource and

Administration portfolio and is Secretary to the KGRTC Board of Trustees.

The office will be responsible for the following:

a) Providing leadership and coordination of the Centre’s Human Resources,

and administration functions.

b) Developing and implementing corporate Human Resource strategies,

policies and programs.

c) Ensuring that KGRTC remains compliant with all statutory obligations.

d) Performing Secretarial functions to the KGRTC Board of Trustees.

9.3.4 Head – Finance and Investment

The Head Finance and Investments is the Chief Financial Officer of the Centre.

The incumbent is responsible for the following:

a) Oversight of the financial and fiscal management aspects of KGRTC

operations.

b) Providing leadership and coordination in the business planning,

accounting and budgeting efforts of the Centre.

c) Developing and implementing finance, accounting, billing, and auditing

procedures.

d) Compliance with local financial statutory and budgetary reporting

requirements.

e) Providing investment advice to the Board of Trustees and Management.

9.3.5 Head – Marketing and Business Development

The Head Marketing & Business Development is responsible for the

following:

a) Providing leadership and coordination of KGRTC sales and marketing

functions.

b) Developing and implementing sales and marketing strategies.

c) Monitoring and analysing sales and marketing activities against goals.

d) Developing and implementing appropriate strategies for creation of long

term value for the Centre.



53 | P a g e

9.3.6 Head – Audit and Risk Management

The Audit and Risk Manager reports to the Audit and Risk Committee of the

KGRTC Board of Trustees. The incumbent is responsible for the following:

a) Timely execution of risk-based internal audits in accordance with the

annual audit plan.

b) Reviewing and assessing KGRTC processes, controls and practices.

c) Gathering and analysing data for internal audits and assists in the

implementation of recommendations from external audits and

communicating results of audits to stakeholders.

d) Reviewing and evaluating the effectiveness and efficiency of operations,

reliability of financial reporting and compliance with applicable laws and

regulations.

e) Evaluating the possible risks and devising risk management procedures

with attention to key risk areas.

f) Performing Secretarial functions to the Audit and Risk Committee of

KGRTC Board of Trustees.

9.3.7 Direct and Indirect Labour

Table 15 shows a summary of the Direct and Indirect Labour for the Centre as

per Organisational Chart in Appendix II (a) and Appendix II (b):

Table 15: Number of Direct and Indirect Labour

Designation Skills and Experience Existing Proposed

Management

Staff

Minimum of first degree with

over 10 years’ experience in the

relevant professional field.

06 06

Consultancy

Staff

Minimum of first degree in

Engineering with at least 5

years post qualification in the

relevant engineering field.

4 8

Supervisory Staff

Minimum of a diploma in the

relevant field with 5 years work

experience.

7 08

Other Staff

Minimum of a Certificate/

Advanced Certificate in the

relevant field with at least 2

years professional experience.

49 53

Total 66 75



54 | P a g e

9.3.8 Staff Motivation

Centre Management motivates workers by utilising an optimal and eclectic

approach, including, among other things, the following aspects.

a) Competitive remuneration packages.

b) Promoting team spirit within the work environment.

c) Providing opportunities for continuous professional development in

line with the Centre’s Human Resource Development Policy.

d) Employing the right number of staff to avoid work overload or work

under load.

e) Treating all staff in a dignified manner.

f) Allowing staff to participate in decisions that affect them.

9.4 Review of the Organizational Structure

KGRTC had a staff establishment of Sixty-six (66) at the time the plan was developed.

The staff complement was Sixty-Five (65). In this Strategic Business Plan 2018 – 2022,

a revised organization structure with a total staff establishment of seventy-five (75) is

being proposed to support the implementation of the new SBP. The titles for some

positions have been changed and responsibilities re-aligned to reflect the changes in

title.

There will be need to assess the effectiveness of the structure in implementing this SBP

and where skills and performance gaps are identified, an organizational restructuring

process will be undertaken. An effective tool to address this process would be a job

evaluation. This process will need to be supported by a more sustainable financing

model.

The gender balance was approximately 29% female and 71% male. KGRTC current

and proposed Organograms are as illustrated in Appendix II(a) and Appendix II(b)

respectively.



55 | P a g e

10. FINANCIAL PLAN 2018– 2022

10.1 Key Underlying Assumptions 2018-2022

10.1.1 Macro-economic Assumptions

a) Inflation: The annual inflation is expected to average around 8% for the

period 2018 to 2020 and 10% from 2021 henceforth. As at end of August

2018 the annual inflation stood at 8.1%.

b) Exchange Rate: The exchange rate of Kwacha to the US dollar is forecast

to rise from ZMW10.7/US$ to K12/US$ by end of 2022.

c) Interest Rates: The BOZ Monetary Policy Rate (MPR) is expected to

remain at 9.75% up to the end of 2018. However starting 2019 onward the

MPR is projected to trend around 12%.

10.1.2 Revenue Assumptions and Notes

a) Revenue growth is assumed to be 10% per annum.

b) Training income is based in US$. This has been converted to Kwacha

using the exchange rates indicated on the spread sheet. This has been

projected to increase by 10% per annum

c) It is assumed that the Chipota Mini Hydropower Station and Kafue Gorge

Lower Small Hydro Power Station will be completed and commissioned

in 2021. The revenue projections are based on the feasibility studies’

estimates.

d) The assumed tariff for the PPA for the Chipota Min Hydro Power Station

will be US$ 0.60/Kwh.

e) The assumed tariff for the PPA for the Kafue Gorge Lower Power Station

will be US$ 0.60/Kwh.

f) Marketing income includes seminars and conferences, accommodation,

catering, laundry and internet services. Marketing income is projected to

grow at 10% per annum.

g) Other income is projected to grow at 5% until 2021 when it increases to

10% due to the increase in room capacity.

h) Income from ZESCO guest houses will be realized starting 2019 with the

handover of the Itezhi Tezhi, Siavonga and Kafue Gorge. Going by

prudence concept, the annual average occupancy rate is assumed to be at

30%, in line with the hospitality industry average.



56 | P a g e

i) ZESCO contribution is related to payroll expenditure. This will increase

in line with the increase in payroll costs, which is projected at an average

of 8% to 10% per annum.

10.1.3 Expenditure Assumptions and Notes

a) It is assumed that the new hydropower stations will be operated and

maintained by a Special Purpose Vehicles (SPVs). KGRTC will pay a

management fee for this service.

b) Operating & Maintenance expenses for the planned mini-hydro power

stations are estimated at 40% of the related income. This is inclusive of the

management fees payable to the SPV that will operate and maintain the

power stations.

c) Consultancy expense is estimated at 70% of the consultancy value.

d) Costs other than payroll costs have been escalated by a net rate of 3%

(Inflation rate of 8% minus cost reduction rate of 5%) for the first two

years and net movement of 5% (Inflation rate of 10% minus 5% cost

reduction rate). For payroll costs see assumptions below.

10.1.4 Human Capital Management Assumptions

a) Structure – It is assumed that the staff establishment will increase by nine

from the current number of 66 to 75.

b) Salary Adjustments – It is assumed that there will be performance related

salary adjustment of 8% during the first two years and 10% during the last

three years of the Plan.

10.1.5 The Regulatory Environment

It has been assumed that the current legal and regulatory framework will not

significantly alter the Centre’s operations during period of the Strategic Business

Plan.



57 | P a g e

10.2 Projected Income & Expenditure 2018-2022

Table 14: Projected Income and Expenditure 2018-2022

2018

K

2019

K

2020

K

2021

K

2022

K

INCOME

Internally generated

income 30,862,199 33,948,419 37,343,261 41,077,587 45,185,346

Income from Power

Projects - - - 4,635,468 45,452,256

ZESCO contribution 27,322,754 30,055,029 33,060,532 31,407,505 25,126,004

ZESCO Guest Houses - 18,900 142,500 229,200 356,700

Grand total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306

Growth -1% 10% 10% 10% 50%

EXPENSES

Personnel expenses 32,639,829 35,965,704 39,624,166 43,901,721 48,607,031

Direct operating

expenses 6,761,895 6,964,752 7,173,695 7,532,379 7,908,998

Marketing expenses 1,517,903 1,563,440 1,610,343 1,690,860 1,775,403

Administration

expenses 7,656,825 7,886,530 8,123,126 8,529,282 8,955,746

Consultancy expenses 3,500,000 3,850,000 4,235,000 4,658,500 5,124,350

Maintenance &

transport expenses 2,606,406 2,684,598 2,765,136 2,903,393 3,048,563

Finance charges 432,000 444,960 458,309 481,224 505,285

O&M - Kafue Lower

Hydro Power - - - - 28,773,853

O&M - Chipota Mini

Hydro Power - - - 413,400 826,800

Total expenses 55,114,858 59,359,984 63,989,775 70,110,760

105,526,030

Growth -4% 8% 8% 10% 51%

Surplus/(deficit) for

the year 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276

Detailed Statements of Income and Statements of Financial Position are shown in

Appendix VI & VII.



58 | P a g e

11. IMPLEMENTATION, MONITORING AND EVALUATION (M&E)

The overall responsibility for monitoring and evaluation of the Strategic Business Plan

rests with the Board of Trusts coordinated through the Director.

Annual implementation plans will be prepared to guide the operationalization of the

Strategic Business Plan. The plans will outline how the strategic objectives and strategic

priorities will be realized by indicating what will be done, by whom, when, and how;

and will serve as a checklist that will be regularly updated, monitored, and shared among

the stakeholders. The plans will also help coordinate and integrate planned actions,

support coordinated and collaborated efforts, minimize duplication, and promote

synergies.

Monitoring and evaluating of how well strategy is being implemented will be aided by

constant tracking of key strategic outcomes and outputs. The Finance and

Administration Committee in conjunction with the Technical Committee of the Board

will carry out a detailed analysis of the strategy implementation.

KGRTC will utilize the BSC-based performance management system to link

operational actions with the strategic goals. The BSC framework is expected to provide

the following benefits:

a) Set strategic milestones;

b) Establish indicators (scorecards) that measure the achievement of each strategic

milestone;

c) Link reward to performance measures; and

d) Provide feedback for strategy review and learning.

KGRTC will ensure that the strategy is fully communicated and cascaded to all

members of staff. This will help members of staff to understand, plan and implement

their respective duties.

Successful implementation of this strategy will require the following:

a) Ownership of the strategy by Staff, Management, and the Board of Trustees;

b) Effective annual implementation planning and commitment of resources;

c) Behavioral change, minimal conflict, institutional cohesion, and harmony; and

d) Effective M&E to support strategy implementation.



59 | P a g e

11.1 Institutional Arrangements for Strategy Implementation

The implementation of this strategy will be carried out by management through the

departments and sections. Implementation therefore requires the shared responsibility

of all employees of the Centre. To harness synergies, ensure holistic and sequenced

approach to implementation of the strategic interventions, and facilitate the coordination

of cross-cutting issues. The Director’s office will coordinate the development of annual

work plans and budgets and bring together relevant stakeholders for joint

implementation of annual plans. Specifically, the responsibilities will entail the

following:

a) Ensuring congruence of institutional, departmental, project and other work plans

with the strategic business plan

b) Ensuring that a sound framework for effective coordination of strategy

implementation is adhered to at all levels.

c) Establishing mechanisms to coordinate intra-departmental linkages in implementing

cross cutting interventions.

d) Periodically organizing strategy performance review meetings to ensure that the

strategy is translated into operations.

e) Developing guidelines and reporting formats and databases to support M&E.

11.2 Progress Reporting, Review, and Communication of Results

Audit and Risk department will provide the foundation for tracking performance against

set targets. Departments shall report at least monthly on key actions, outputs, and

progress towards outcomes, where outcome data is available. This will guide the

production of a quarterly performance report which will be presented to the Board of

Trustees for discussion. The quarterly performance reports will be consolidated into

KGRTC annual report.

To align the strategy with the ever-changing environment, a mid-term review shall be

conducted to assess the performance of KGRTC towards overall targets and the

relevance of the strategic interventions to address emerging challenges.

The staff performance management system shall be aligned with the institutional work

plans to help translate the strategy into every staff member’s role and responsibilities.

Staff performance appraisal at all levels will therefore be developed and signed off

together with departmental work plans.

12. CONCLUSION

The 2018-2022 Strategic Business Plan provides a clear road map that will transform

KGRTC into a dynamic organization responsive to the needs of stakeholders. Overall,

the plan considered the needs, expectations and aspirations of stakeholders and ensures

that the targets set were SMART.

APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017

60 | P a g e

Strategic

Objective

Performance Target Achievement Means of Verification Score

Comments on the

Deviations

Total

Score

%

Score

Criteria Year Target Actual

1. To provide

quality training and

increase

revenue by

5%

annually

1. Minimum of 300 course

participants

annually

FY 2013 300 399 Training Annual Report of

2013 5 None

17.40 87.0%


2014 5 None


2015 5 None


2016 5 None


2017 5 None

2. Two (2)

training

needs

assessments

undertaken

annually

outside

Zambia;

FY 2013 2 2 Training Needs Assessment

Reports 5 None

FY 2014 2 1

Training Needs Assessment

and Marketing Reports

2.5

TNA not conducted

due to constrained

financial resources

FY 2015 2 2 5

FY 2016 2 1 2.5

TNA not conducted

due to constrained

financial resources

FY 2017 2 0 1

Insufficient Financial

Resources to

undertake the TNA

3. Review and

revise all old and new

courses

FY 2013 to

2017 1 1

Curriculum Review Report-

2014; Stakeholders Forum

Minutes SHF Meeting of

2014

5

All courses were

reviewed and

enhanced in 2014

with the participation

of all stakeholders

4. 5% annual

revenue

growth

FY 2013 6,656,213 8,869,405 (33%)

Audited Financial Reports

5

FY 2014 8,869,405 10,621,671 (20%) 5

FY 2015 10,621,671 28,335,530 (167%) 5

FY 2016 28,335,530 22,336,696 (21%) 1

FY 2017 22,336,696 24,830,962 (11%) 5


61 | P a g e

Strategic

Objective

Performance Target Achievement Means of Verification Score

Comments on the

Deviations

Total

Score

%

Score Criteria Year Target

2. To increase

market share

by 10%

1. Revise

Marketing

Policy

Approved

Policy

Policy is

revised

pending

submission to

the Board

Board Minutes

3

Review not

completed. The

revised policy was

referred back to

Management for further enhancement

at the Board Meeting

of 2016. 7.00 70%

2. Introduce 10

new clients

annually

FY 2013 10 14

Annual Training Report, and

Annual Marketing and Public

Relations Report

5

FY 2014 10 5 2.5

FY 2015 10 7 3.5

FY 2016 10 11 5

FY 2017 10 8 4

3. To diversify

the training

package to

satisfy the

customer

requirements

1. Introduce

distance

learning

a) Distance Learning

Programme Curriculum

developed and approved

by TEVETA in 2017 for

Diploma in

Hydropower

Development and

Management

Approved

Curriculum

Approved Curriculum

5

None

8.00 80%

b) Platform for distance

learning under

development

WIP N/A

2

Insufficient funds

c) Module materials under

development

WIP Training Modules

2

Development of

training modules was

delayed by

completion and

approval of

curriculum

2. Conduct a

minimum of

4 tailor made

courses

annually

FY 2013 4 24 Training Report - 2013 5

FY 2014 4 25 Training Report - 2014 5

FY 2015 4 19 Training Report of 2015 5




62 | P a g e

Strategic

Objective Performance Target Achievement

Means of

Verification Score

Comments on the

Deviations

Total

Score

%

Score

4. To design

and Develop

new courses

in energy

technologies

1. Develop new

courses in Solar

Energy

Technology

Course development process initiated, together with efforts for acquisition of support training

equipment

MOU with SMA of

German, and

Solektra

Academy of

Mali

2

Pending acquisition of equipment support training

13.00 65%

2. Develop new

courses in Wind

Power technology

Course developed and conducted on Wind

data handling for wind power development

and use

Training

Annual Report

of 2017

3 Further courses to be

developed on construction,

operation and maintenance

of wind farm once the

support infrastructure is in

place

3. Develop new

courses tailor made

for the mini hydro

power station

2 courses developed and conducted on the

following: Annual

Training Report

[2014], [2016]

4 a) Small Hydropower Development and

Optimization

b) Operations and maintenance of small

hydropower stations

4. Develop new

courses tailor made

for the Power

Systems

Simulators

6 Course developed and conducted on:

Annual

Training Report

[2017]

4

a) Load Tap Changers;

b) Power Systems Stability Studies;

c) Power Systems Fault Analysis;

d) Power Systems Reliability Studies;

e) Hydropower Dam Management;

f) Power Pool Operations

5. To acquire

and install

infrastructure

for new

energy

technologies

1. Install and operate

wind turbine at

KGRTC

Wind measurement mast was installed and readings taken over a period of 12 months.

From the assessment, it is feasible to install

three turbines with a total generating capacity

of 7.5 Mega Watts.

Physical Inspection &

Asset Register

2 Time and financial constraints. Completion of

the power projects need

more time to reach financial

closure 6.00 60% 2. Install and operate

solar equipment at

KGRTC

Solar Hybrid System installed in the New

Power System Simulator Building. Physical

Inspection &

Asset Register

4


63 | P a g e

Strategic

Objective Performance Target Achievement

Means of

Verification Score

Comments on the

Deviations

Total

Score

%

Score

6. To develop a mini –

hydropower

station

1. Mobilize funding for mini

hydropower station

Grant given by Sida to complete the feasibility studies for construction of the mini hydropower

station. Feasibility Study

Reports 2

Funds for construction were not available. Transaction

advisor engaged to assist

KGRTC develop financial

model and financing options 4.00 40% Transaction advisor engaged to assist KGRTC

develop financial model and financing options.

2. Construct and

operate a mini

hydropower station

Transaction advisor engaged to assist KGRTC

develop financial model and financing options. Contract 2

7. To establish

and maintain

effective

formal

relations with

other institutions

1. Review all existing

MOU’s with CBU,

UNZA, SBB,

Review and commenced and ongoing Existing MOUs 2 Reviews still on-going. six

(6) new MOU’s signed with

a) Association of Power

Utilities in Africa (APUA);

b) International Centre for

Hydropower (ICH); c) ABB AB; d) UNIPOWER

Sweden; e) IRCA Savenda

6.00 40% 2. Database on all

similar institutions

established and

operational.

Information on collaborations is maintained.

Implementation

Report

2 A standard database is yet to

be established.

3. All KGRTC

courses placed on

the SADC

Qualification Protocol

All courses were accredited to TEVETA for

placement on the Zambia National

Qualification Authority Correspondence

from SADC 2

Discussions still on-going

through TEVETA and

Zambia Qualifications

Authority (ZAQA)

8. To effectively

develop and

maintain

human

resources

1. All KGRTC employees

appraised midyear

and annually

All employees consistently appraised annually

Performance

Appraisal Records 4

The aspect and extent of measuring implementation of

the HRD Plan was not

quantified

8.00 80% 2. KGRTC internal training needs

analysis

undertaken

annually.

Training Needs carried out annually to develop the annual HRD Plan

Training Needs Assessment

Record; HRD

Plan

4


64 | P a g e

Strategic

Objective Performance Target Achievement Means of Verification Score

Comments on the

Deviations Total Score

%

Score

9. To provide

cost effective

logistical and

administrative

support

services

1. Procurement

Plan for

KGRTC

developed and

implemented

annually

FY 2013 0 0

Report on

Implementation of

Procurement Plan

1

Procurement Plans were not

available.

2.41 48% FY 2014 0 0

Report on

Implementation of

Procurement Plan

1

FY 2015 37 35

Report on

Implementation of

Procurement Plan

4 Procurement Plan

developed annually but not

fully implemented due to

financial challenges on

Capital Expenditure

(CapEx).

FY 2016 144 75 3

FY 2017 119 72 3

10. To Review the

KGRTC

Business Plan

1. Business Plan

reviewed

annually

Mid Term and Final review of the

Business Plan were done.

Mid Term Review

Report, Final Review

Report 2

Budget and management

accounts reviewed annually

with the development of

annual operational budgets

2.00 40%

GRAND TOTALS [OVERALL SCORE] 73.81 out of 115 64.2%

APPENDIX II (b): CURRENT ORGANOGRAM

65 | P a g e

GRD ES

T

MS1

01

MS2

01

MS3/

AS1

08

AS 2 04

SS1

08

SS2

08

GS1 08

GS2 32

GS3 05

TOT

AL

75

Board of Trustees

Director

1x1

Head Finance & Investment

1x1

Head Training & Consultancy 1x1

Head Audit and Risk

Management 1x1

Head Marketing & Development 1x1

Head Administration 1x1 Consultants

4x1

Accountant

1x1

Marketing &

Development

Officer 1x 1

Food & Beverage Officer 1x1

Procurement Officer 1x1

Human

Resources Officer

1x1

Information

Technology Officer 1x1

Internal

Auditor 1x1

Assistant

Accountant

1x1

Housekeeper 1x1

Head Chef 1x1 Assistant

Procurement

Officer 1x1

Automotive

Mechanic 1x1

Maintenance

Technician 2x1 Information

Management

Officer

1x1

Stores

Accountant

1x1

Laundry

Supervisor 1x1 Chef 5x1

Secretary

1x1

Accounts

Assistant

1x1

Stores

Assistant

1x1 Receptionist

2x1

Laundry

Attendant

4x1

Barman 1x1

Room

Attendant

10x1

Driver

4x1 KEY:

GRD - Grade

EST - Establishment

Security Guard

1x1

Conference

Attendant 1x1 Gardener

1x1

Stewards 2x1

Waiter

5x1

Assistant Consultants

4x1

Maintenance

Officer 1x1

Crafts Person

4x1

APPENDIX II (b): CURRENT ORGANOGRAM

66 | P a g e

GRD E

S

T

MS1

01

MS2 01

MS3/

AS1

08

SS1

07

SS2

08

GS1 08

GS2 28

GS3 05

66

Board of Trustees

Director

1x1

Training Manager 1x1

Audit & Risk

Manager 1x1

Registrar 1x1 Lecturer 4x1

Bursar 1x1 Marketing &Public Relations Manager 1x1

Internal Auditor

1x1 Human Resources

Officer 1x1 Accountant

1x1

Information Technology

Officer 1x1

Procurement

Officer 1x1 Catering Officer 1x1

Conference

Services Officer

1x 1

Assistant

Accountant 1x1

Library Officer 1x1 Buyer Officer 1x1 Maintenance

Technicians 2x1

Automotive

Mechanic 1x1 Head Chef 1x1

Housekeeper 1x1

Secretary1

x1 Chef 5x1

Laundry Supervisor 1x1

Stores

Accountant

1x1

Room

Attendant

10x1

Receptionist 2x1

Stores

Assistant

1x1 Cashier

1x1

KEY:

GRD - Grade

EST - Establishment

Waiter 5x1

Barman 1x1

Laundry

Attendant

4x1

Driver

4x1

Stewards 2x1

Conference

Attendant 1x1 Security Guard

1x1

Gardener 1x1

APPENDIX III: CURRENT AND PROPOSED POSITIONS AND TITLES

67 | P a g e

Current and Proposed Positions and Titles

Existing Proposed No. of

Positions M

anag

emen

t S

taff

Director Director 1

Training Manager Head Training and Consultancy 1

Bursar Head Finance and Investment 1

Audit and Risk Manager Audit and Risk Manager 1

Marketing and Public Relations

Manager

Head Marketing and Business Development 1

Registrar Head Human Resource and Administration 1

Acad

emic

Sta

ff (

AS

1)

Lecturer – Mechanical

Engineering

Consultant – Training and Research 2

Lecturer – Electrical Engineering Consultant – Training and Research 2

None Assistant Consultant – Training and

Research

4

Su

pervis

ory

Sta

ff

Scale

1(S

S1

)

Conference Services Officer Marketing and Business Development

Officer

1

Accountant Accountant 1

Catering Officer Food and Beverage Officer 1

Human Resource Officer Human Resource Officer 1

IT Officer IT Officer 1

Procurement Officer Procurement Officer 1

Internal Auditor Internal Auditor 1

Super

vis

ory

Sta

ff

Sca

le2

(SS

2)

Library Officer Information Management Officer 1

Housekeeper Housekeeper 1

Maintenance Technician Maintenance Officer 2

None Maintenance Technician 1

Automotive Mechanic Automotive Mechanic 1

Head Chef Head Chef 1

Buyer Assistant Procurement Officer 1

Assistant Accountant Assistant Accountant 1

Gen

eral

Sta

ff

Sca

le1(G

S

1)

Stores Accountant Stores Accountant 1

Chef Chef 5

Secretary Secretary 1

Laundry Supervisor Laundry Supervisor 1

Gen

eral

Sta

ff S

cale

2 (

GS

2)

Receptionist Receptionist 2

Cashier Accounts Assistant 1

Stores Assistant Stores Assistant 1

Barman Barman 1

Waiter Waiter 5

Driver Driver 4

Classroom Attendants, Sanitary

Cleaner, Room Attendants

Room Attendant 10

Laundry Attendant Laundry Attendant 4

None Craft Person 4

Gen

eral

Sta

ff

Sca

le3(G

S

3)

Conference Attendant Conference Attendant 1

Kitchen Cleaner Steward 2

Security Guard Security Guard 1

Gardener Gardener 1

Total 75

APPENDIX IV: PESTEL ANALYSIS

68 | P a g e

Factor Global Regional National

Positive Challenge Positive Challenge Positive Challenge

Political Political instability Changes in regional governments

Political Stability Local political changes affecting ZESCO Management.

Government policy to train in-

house affects inflows to KGRTC.

Government regulation with regards to immigration



Economic Emerging energy development

initiatives in

Africa and focus

on investments in energy

Slow growth rate within the region

Vibrant local market

Increased number of utilities in the region developing their own

training schools.

Minimal investment in capital

projects in the energy sector

Rising inflation rates has meant

that KGRTC operating costs have been high in some instances

Changes in some power utilities

undergoing restructuring.

Rising bank interest rates

Courses denominated in USD become expensive for local clients

with the weakening of the Kwacha

Stiff competition in conference services within the Kafue,

Siavonga, and Lusaka areas.

Competing products

on the market

Competing products on the

market

Competing products on the

market

Good partnerships

with suppliers

APPENDIX IV: PESTEL ANALYSIS

69 | P a g e



Social Cultural Diversity of cultural

backgrounds

among the people coming in.



Technological Introduction on virtual

learning/e-

learning. Rapid

changes in technology.

High investment

in energy sources and

technology


Positive Challenge Positiv

e

Challenge Positiv

e

Challenge

Legal High immigration fees for

course participants staying

for long periods exceeding

4 weeks.

Environment Effects of climate

change

Low water levels due to poor rainfall in the

sub-region, has meant that utilities have cut

on investment and training expenditure due

to low revenue.

APPENDIX V: HISTORICAL STATEMENT OF INCOME AND EXPENDITURE [2013-2017]

70 | P a g e


5 YEAR INCOME STATEMENTS

2017

K

2016

K

2015

K

2014

K

2013

K

INCOME

Internally generated

income

18,838,328 19,984,348 10,272,541 9,936,552 8,869,405

Income from projects 5,919,901 832,608 24,614,221 1,693,676 -


Non-operating income 11,581,018 9,928,356 10,472,473 1,818,167 916,434

Grand total income 58,576,980 54,879,653 61,791,377 25,874,186 20,812,716

Growth 7% -11% 139% 24% 26%

EXPENSES


Direct operating expenses 8,384,784 4,688,894 2,302,666 2,650,050 2,316,937

Marketing expenses 1,095,238 1,413,431 518,207 1,179,559 789,920

Administration expenses 20,201,185 18,848,048 31,450,613 4,862,827 3,519,523

Maintenance & transport 1,816,872 1,737,592 1,182,799 1,418,933 1,336,826

Finance charges 165,879 203,233 384,862 112,079 58,682

Total expenses 57,645,140 57,273,076 57,259,296 26,224,927 20,472,374

Growth 1% 0% 118% 28% 11%

Surplus/(deficit) before

taxation 931,840 (2,393,423) 4,532,081 (350,741) 340,342

Taxation - - (3,452)

Surplus/(deficit) for the

year 931,840 (2,393,423) 4,532,081 (350,741) 336,890

APPENDIX VI: PROJECTED STATEMENT OF INCOME AND EXPENDITURE [2018-2022]

71 | P a g e

2018 2019 2020 2021 2022

Budget Forecast Forecast Forecast Forecast

Income

Training 15,048,500 16,553,350 18,208,685 20,029,554 22,032,509

Seminars & conferences 238,966 262,862 289,148 318,063 349,869

Accommodation 5,232,597 5,755,856 6,331,442 6,964,586 7,661,045

Catering 4,096,661 4,506,327 4,956,960 5,452,656 5,997,921

Laundry 360,000 396,000 435,600 479,160 527,076

Other income 885,476 974,023 1,071,426 1,178,568 1,296,425

Exchange gains - - - - -

Consultancy income 5,000,000 5,500,000 6,050,000 6,655,000 7,320,500

Sub Total 30,862,199 33,948,419 37,343,261 31,077,587 35,185,346


Utilities contribution - - - - -

Net Income from ZESCO

Guest Houses & Lodges - 18,900 142,500 229,200 356,700

Income from Kafue Lower

Mini Hydro 36,181,320

Income from Chipota Mini

Hydro 4,635,468 9,270,936

Total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306

Expenses


Direct operating expenses 6,761,895 6,964,752 7,173,695 7,532,379 7,908,998

Marketing expenses 1,517,903 1,563,440 1,610,343 1,690,860 1,775,403

Administration expenses 7,656,825 7,886,530 8,123,126 8,529,282 8,955,746

Consultancy expenses (70%

of income) 3,500,000 3,850,000 4,235,000 4,658,500 5,124,350

Sida projects consultancy

fees - - - - -

Maintenance & transport

expenses 2,606,406 2,684,598 2,765,136 2,903,393 3,048,563

Finance charges 432,000 444,960 458,309 481,224 505,285

Sub total expenses 55,114,858 59,359,984 63,989,775 69,697,360 75,925,377

O&M for Kafue Lower

Hydro Power station - - - - 28,773,853

O&M for Chipota Mini

Hydro Power station - - - 413,400 826,800

Total Expenses 55,114,858 59,359,984 63,989,775 70,110,760 105,526,030

Surplus/Deficit 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276

APPENDIX VII: PROJECTED STATEMENT OF FINANCIAL POSITION [2018-2022]

72 | P a g e

Actual Budget Budget Budget Budget Budget

31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022

K K K K K K

NON-CURRENT ASSETS

Property, plant & equipment 29,787,249 34,336,199 57,676,199 141,816,199 224,616,199 332,355,689

CURRENT ASSETS

Inventories 186,013 169,331 203,197 243,837 292,604 351,125

Trade and other receivables 13,855,730 5,673,690 9,310,789 11,172,947 13,407,536 13,909,632

Income tax advance payment 215,463 216,666

Cash and bank 3,975,716 9,393,141 10,925,485 16,288,515 24,546,957 38,418,374

TOTAL CURRENT ASSETS 18,232,922 15,452,828 20,439,471 27,705,299 38,247,097 52,679,131

TOTAL ASSETS 48,020,171 49,789,027 78,115,670 169,521,498 262,863,296 385,034,821

TRUST FUNDS AND LIABILITIES

Accumulated funds 1,740,218 4,810,312 9,472,676 16,029,194 23,268,194 33,862,471

Capital reserve 10,746,748 10,746,748 10,746,748 10,746,748 10,746,748 10,746,748

Revaluation reserves 14,951,946 14,951,946 14,951,946 14,951,946 14,951,946 14,951,946

Capital grants 158,329 158,329 21,358,330 103,358,330 186,158,330 242,158,330

TOTAL TRUST FUNDS 27,597,241 30,667,336 56,529,700 145,086,218 235,125,218 301,719,494

NON-CURRENT LIABILITIES

Loans & Borrowings 51,739,490

Deferred Liabilities 10,438,633 11,266,205 12,159,387 13,123,380 14,163,798 15,286,700

10,438,633 11,266,205 12,159,387 13,123,380 14,163,798 67,026,190

CURRENT LIABILITIES

Trade and other payables 9,984,299 7,855,487 9,426,584 11,311,901 13,574,281 16,289,137

Loans & Borrowings

Income tax -

TOTAL CURRENT LIABILITIES 9,984,299 7,855,487 9,426,584 11,311,901 13,574,281 16,289,137

TOTAL FUNDS AND LIABILITIES 48,020,171 49,789,027 78,115,670 169,521,498 262,863,296 385,034,821

APPENDIX VIII: INVESTMENT PROJECTS [2018-2022]

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Project Name Financier Current

Capacity

Expected

Capacity

(kilowatts)

Estimated

Cost (US$)

Expected

Annual

Revenue (US$)

O & M

(US$)

Construction

Period

[Years]

Date of

Commissioning

[Commercial

Operations]

Feed in

Tariff

(US$/KWh

)

Economic

Useful life

(Years)

1. Chipota Falls Min

Hydropower Station

UNDP,

KGRTC &

REA

- 200 1,779,000 772,578 68,900 1.50 1st Half of 2022 0.60 20

2. KGRTC Small

Hydropower Station

Sida,

KGRTC &

Others

- 10,000 36,354,664 3,015,000 310,000 4.00 1st Half of 2023 0.60 20

3. Kafue Gorge Lower

Small Hydropower

Station ZESCO

- 13,000 - 3.00 4th QTR 2021 0.60 20

4. KGRTC Wind Farm Unfunded - 7,500 12,000,000 1.00 After 2022 0.07 10

5. New Learning Centre Unfunded -

25,628,694 3.00 After 2022 50

TOTALS - 30,700 75,762,357 3,787,578 378,900

Project Name Financier Current

Capacity

Expected

Capacity

(Kilowatts)

CAPEX (K)

Expected

Annual

Revenue (K)

O & M

(US$)

Construction

Period

(Years)

Date of

Commissionin

g

Feed in

tariff

(K/KWh)

Economi

c Useful

life

(Years)

1. Chipota Falls Mini

Hydropower Station

UNDP,

KGRTC &

REA

- 200 19,035,300 8,266,585 737,230 1.50 1st Half of

2021 6.42 20

2. Kafue Gorge Lower

Small Hydropower

Station

Sida,

KGRTC &

Others

- 13,000 - - - 4.00 1st Half of

2023 6.42 20

3. KGRTC Small

Hydropower Station ZESCO - 10,000 388,994,900 32,260,500

3,317,000 3.00

4th Quarter

2021 6.42 20

4. KGRTC Wind Farm Unfunded - 7,500 128,400,000 - - 1.00 After 2022 0.75 10

5. New Learning Centre Unfunded - - 274,227,022 - 3.00 After 2022 50

TOTALS - 30,700 810,657,222 40,527,085 4,054,230

Average Exchange Rate (K/US$) 10.70