11stst MEETING OF THE SCIENTIFIC MEETING OF THE SCIENTIFIC COMMITTEE COMMITTEE

WORKING DOCUMENT

Tunis, 15th – 17th October 2008DOCUMENT DE TRAVAILTunis, 15 – 17 octobre 2008

PROGRAMMEOCTOBER 14TH, 2008

3:00PM – 6:00 PM: REGISTRATION OF DELEGATES5:00PM – 07:00 PM: PREPARATORY MEETING (CLOSED SESSION)

Chairperson: The Chairman of the Scientific Committee Participants: The UPDEA Secretary General

-Outgoing General Rapporteur- Outgoing coordinators, resource persons of the Study Committees

Preliminary Review of the Project of Revitalization of the Scientific Committee

OCTOBER 15TH, 2008

08:00a.m – 08:45 a.m REGISTRATION OF DELEGATES (Continued)

09:00a.m – 10:00 a.m OPENING SESSION- Address by the chairman of the UPDEA Scientific Committee - Address by the UPDEA Secretary General - Opening speech by the CEO of STEG- Conference on “ENERGY EFFICIENCYAND RENEWABLE

ENERGIES –AFRICA’S CHALLENGE”

10:00 a.m – 10:30 a.m COFFEE BREAK

10:30a.m – 11:15 a.m SESSION 1: PLENARY SESSIONChairpersonRapporteur

- Reminder of the main resolutions and recommendations of the 16th UPDEA Congress by the Secretary General.

- The UPDEA Secretary General to submit the report on the revitalization of the Scientific Committee

Exchanges and discussions

11:15 a.m – 12:30 SESSION 2: WORK IN COMMISSIONS (3)

- President of the Commissions: To be appointed- Rapporteur of the Commissions: To be appointed

Review of report on the revitalization of the Scientific Committee

12:30 PM – 02: 00 PM LUNCHEON

02:00 – 03:45PM SESSION3: PLENARY SESSIONRapporteur: outgoing General RapporteurChairperson: Mr. Abel Didier TELLA, UPDEA Secretary General- The Rapporteurs to submit the results of proceedings in commission - Summary of the proposals and adoption of the corrective measuresPRESENTATIONS:

03:00 – 03:45 PM: PRESENTATION ON”RURAL ELECTRIFICATION, THE EXPERIENCE OF STEG” BY

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SCIENTIFIC COMMITTEE TUNIS, 15 – 17 OCTOBER 2008

Mr. JAMIL KORKED (Director of Northern Distribution Region)PRESENTATIONS BY AFFILIATES MEMBERS

03:45 – 4:00 PM COFFEE BREAK

4:00 – 05:00 PM SESSION4: PLENARY SESSION

Chairperson: Mr. Abel Didier TELLA UPDEA Secretary General Rapporteur: Outgoing General Rapporteur of the Scientific Committee

- Setting up of the various Study committees- Setting up of the board of the Scientific Committee

05:00 – 05:45 SESSION5: WORKS IN STUDY COMMITTEESAppointment of Coordinators and Rapporteurs of the study committees

05:45 PM: END OF THE DAYOCTOBER 16TH, 2008

09:00 – 10: 00 AM SESSION: 6 WORKS IN STUDY COMMITTEES

Working out themes for the 2008 – 2011 period

10:00 – 10:30 COFFEE BREAK

10:30 – 12:00 PM SESSION7: PLENARY SESSIONChairperson: Mr. Abel Didier TELLA UPDEA Secretary General

Rapporteur: Incoming Rapporteur General- Presentation of the new office bearers of the Study

committees- Presentation of the themes selected by the study committees- Summary of the proposals and adoption of the various themes

12:00 – 02:00 PM LUNCHEON

02:00 – 03:00 PM: SESSION8: WORKS IN STUDY COMMITTEESWorking out of the detailed 2008 – 2011 Activity programme

03:00 - 03:30 PM: CO-ORDINATION MEETING (CLOSED SESSION)

Chairperson: The Chairman of the Scientific Committee Participants: - UPDEA Secretary General

- General Rapporteur - Coordinators of the Study committee

03:30 – 04:00: COFFEE-BREAK04:00 – 05:30 PM: FINALIZATION OF THE REPORT OF THE

MEETING AND VOTES OF THANKSGeneral Rapporteur and Rapporteurs of Study Committees

05:30 – 06:30 PM CLOSING SESSION- Reading of the final report of the Scientific Committee by

the General Rapporteur

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- Votes of thanks by the Secretary General- Address by the Chairman of the Scientific Committee- Votes of thanks- Closing address by the CEO of STEG

08:30 - 11:00PM: GALA DINNEROCTOBER 17TH, 2008 TECHNICAL VISIT

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ACTIVITY REPORTS OF STUDY COMMITTEES

ACTIVITY REPORT

STUDY COMMITTEE ON OPERATION,MAINTENANCE AND DEVELOPMENT OF POWER SYSTEMS (SC1) of UPDEA

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1. Membership

The membership of SC6 included representatives from

SONELGAZ, Algeria (Coordinator) PHCN, NigeriaVRA, Ghana (Vice Coordinator) EDEL, AngolaESKOM, South Africa (1st Rapporteur) ZESCO, ZambiaSNEL, DRC (2nd Rapporteur) KPLC, KenyaCIE, Côte d’Ivoire KENGEN, KenyaSOGEM, OMVS ELECTRO-GAZ, RwandaECG, Ghana AES-SONEL, CamerounSENELEC, Senegal EEHC, EgyptENRECA, RCA ENE, AngolaSONABEL, Burkina Faso NEC, Sudan

2. Introduction

The first Scientific Committee meeting was held in Nairobi, Kenya after the 15 th

Congress in Accra, Ghana. The main objective was to develop working programs for the next four years

3. Objectives for the Period 2005 – 2008

The objectives set by the committee for the period as stated is to work in two groups with the work set out as follows:

Work Group 1 to be led by KenGen with the following activities;

Completion of the Africa grid map, which was an activity from the previous period but was not completed owing to constraints of having all the various maps from the African Power Pools. This activity would be led by ESKOM.

Strategy of development of generation/transmission in the perspective of interconnected systems. This activity would be led by SONELGAZ.

Work Group 2 to be led by SENELEC with the following activities;

Operational guidelines for interconnected systems. This activity would be led by SENELEC/ESKOM.

Guidelines for best practices of operation and maintenance of electrical power systems. This activity would be led by ECG/CIE.

The themes that were selected for the 16th Congress was as follows: Good governance as a benchmark for best practices for operations and

maintenance of electric utilities Access to good quality electricity for African People.

4. Activity Report of the Study Committee

This was a very difficult period as a number of assignments were partially fulfilled. The main reason was that workshops which had been earlier organised never materialized. There were changes on those that had been nominated by utilities to

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head tasks assigned to this Scientific Committee Work Study; and lack of consistency in attendance to Scientific Committee meetings on those who had been nominated to execute specific deliverables. This appears to be the norm rather an exception; unless utilities take upon themselves to support UPDEA initiatives this problem will continue. The following tasks were still work in progress /completed as indicated below:

Africa Grid Map, the task was completed; Strategy on the development of generation, transmission in perspective of

interconnected systems. The work is still in progress; Operational guidelines for interconnected systems. The work requires some

review and completion; one workshop will be required to complete the task ; Guidelines for best practices of operation and maintenance of electrical power

systems. Documents were circulated, a workshop will be required to pursue the finalisation of this work ;

Presentations were made during the second Scientific Committee meeting on 24-26 October 2006 in Luanda on Live Line Maintenance and discussions on how these methods could be adopted by for other low voltage lines ; and

Presentations were made on technical innovations aimed at increasing the life expectancy of transformers and preventing explosion of transformers.

5. Recommendations

The work which is still work-in-progress should be carried out in the next period and workshops should be planned in advance to carry out this work.

6. Conclusion

The work that has been started should continue.

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ACTIVITY REPORT

RURAL ELECTRIFICATION STUDY COMMITTEE (SC2) of UPDEA

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1.0 VISION

To design and implement sustainable programs to get Africa out of obscurity by accelerating the pace of Rural Electrification in Africa to attain 60% coverage on the continent.

2.0 MISSION

To harmonize the rural electrification experiences of the various nations of the African continent with the view of recommending the best practices for adoption and also identify sustainable sources of funding for implementing Rural Electrification programs in Africa in the light of Good Governance of the electricity industry.

3.0 OBJECTIVES OF THE COMMITTEE: 2006-2008

To develop strategies in the frame work of Good Governance of the Electricity industry for the implantation of the following selected themes adopted for the 2006-2008 period:

Cross border rural electrification Development of geographical information systems. Decentralized rural electrification (Off Grid Systems) Creation of the rural electrification fund Demand Side Management

The following working groups were setup to handle the themes that were adopted by the committee for the period:

Group 1, Leader: VRA, GHANA

Cross border Electrification Review of Terms of Reference for Setting up Rural Electrification Fund

Group 2, Leader: AES –SONEL, CAMEROUN

Geographic Information Systems Review of Terms of Reference for Setting up Rural Electrification Fund

Group 3, Leader: KENGEN, KENYA

Decentralized Rural Electrification (Off-Grid) Demand Side Management Review of Terms of Reference for Setting up Rural Electrification Fund

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4.0 COMPOSITION OF THE BOARD OF THE STUDY COMMITTEE

The first meeting of the Study Committee on Rural Electrification held during the Scientific Committee meeting, in Nairobi, Kenya from 15th – 17th February 2006, adopted the composition of the board of the Rural Electrification Study Committee. The following appointments were made:

Coordinator - STEG (Tunisia)Vice Coordinator SENELEC (Senegal)Rapporteur SOPIE (Cote D’Ivoire)Vice Rapporteur PHCN (Nigeria)

WORKING GROUPS AND GROUP LEADERS

GROUP 1, GROUP LEADER: VRA, GHANA

GROUP 2, GROUP LEADER: AES –SONEL, CAMEROUN

GROUP 3, GROUP LEADER: KENGEN, KENYA

MEMBERSHIP

The following members of the committee were identified:

SENELEC – SENEGAL PHCN – NIGERIA VRA – GHANA ECG – GHANA SOGEPE – COTE D’IVOIRE ESKOM – SOUTH AFRICA KENGEN – KENYA AES-SONEL – CAMEROUN STEG – TUNISIA SOPIE – COTE D’IVOIRE SONEL-GAZ ALGERIA NIGELEG- NIGER SBEE – BENIN EDG – GUINEA SEEG – GABON SNEL – DR CONGO ENE – ANGOLA SOMELEC – MAURITANIA ZESCO – ZAMBIA SNE – CONGO BRAZAVILLE

5.0ACTIVITY REPORT/ACHIEVEMENTS

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5.1 Methodology for Implementing the ProgrammeThe methodology adopted by the Rural Electrification Study Committee for carrying out its activities adopted during the scientific committee meeting held in February 2006 in Kenya, was as follows:

Organize Study Committee meetings to coincide with Scientific Committee meetings to review and discuss submitted documentations on various topics or issues related the adopted themes.

Participate in organized workshops and conferences on Rural Electrification Experiences. Make presentations and contributions during the workshops and review decisions reached at the conferences and workshops from which recommendations can be made on the various themes adopted.

5.2 A summary of achievements for the period is as follows:

Period Activity Venue Accomplishment15-17 Feb. 2006

1st SC Meeting & Rural electrification Study Comm. meeting

Nairobi, Kenya Defining themes, work program and strategies for implementation. Review of document on FADER

20 – 22 Sept 2006

Workshop on Rural Electrification

Tunis, Tunisia Presentations, reviews, discussions by major stakeholders in the industry, utilities, Financiers, Bilateral donors,

24-26 Oct. 2006

2nd SC Meeting & Rural Electrification Study Comm. meeting

Luanda Angola Review of presentations and workshop discussions and recommendations for retention, Review of Document on FADER

3 – 5 Apr. 2007

3rd SC Meeting & Study Comm. meeting

AbidjanRCI

Recommendations/conclusions on Tunis Workshop & FADER. Plan for Marrakech Conference on RE.

20 – 22 Sept 2008

Workshop on Rural Electrification

Marrakech, Morocco

Presentations, reviews, discussions by major stakeholders in the industry, Technical & cross border

12 – 14 Mar 2008

4th SC Meeting & Rural Electrification Study Comm. meeting

Ouagadougou, Burkina Faso

Review of presentations and conference discussions and recommendations for retention, Discussion of Congress Report

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5.3 The following documents were reviewed,

TERMS OF REFERENCE FOR THE CREATION OF AN AFRICAN FUND FOR THE DEVELOPMENT OF RURAL ELECTRIFICATION AND PERI-URBAN AREAS (FADER)

Having reviewed the finalized Terms of Reference for the feasibility studies for the establishment of the rural electrification fund, the subcommittee at its Abidjan meeting expressed its satisfaction and believe that the fund will contribute immensely to the realization of the dreams of African Rural Electrification and therefore recommended for the selection of a consultant to collate experiences of UPDEA member nations for the implementation of FADER.

EXPERIENCES IN THE IMPLEMENTATION OF CROSS BORDER ELECTRIFICATION.

In order to accelerate the implementation of cross border electrification projects, the subcommittee recommended the following

The utilities undertake feasibility studies locally before seeking for funding Encourage countries that have completed feasibility studies in identified cross

border projects, to submit proposals to their respective power pools to facilitate the sourcing of funds

Promote the establishment of Joint Technical Committees from the utilities involved for the management of the cross border electrification projects

Establish closer cooperation among countries concerned in order to find solutions to common problems they encounter during implementation

5.4 Review of workshop on Rural Electrification

WORKSHOP ON RURAL ELECTRIFICATION EXPERIENCES AND INNOVATIVE INSTITUTIONAL AND FUNDING APPROACHES

A workshop was organized in Tunis on the initiative of the UPDEA’s General Secretariat for the benefit of Electric Power Utilities and the Rural Electrification National Agencies from various African countries. This was at Hotel Mercure El Mechel in Tunis from 20 – 22, September 2006.

Members of the study committee participated in the workshop and the various presentations and workshop recommendations were reviewed by the Study committee.

The three topics treated under Session I addressed issues of funding for Rural Electrification that were reviewed.

The topics were; Energy Program of the NEPAD initiative World Bank objectives and policy in the development of electric power energy

accessibility.

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Justification of innovative institutional and funding approaches for rural electrification

From the presentations it was agreed that, national power utilities required appropriate supporting measures to take up major challenges to promote the development of rural electrification in Africa through the establishment of National Agencies for Rural Electrification.

Lack of support has led to the widespread poor extension of electrification in the rural areas in Africa, particularly in sub-Sahara Africa (an average of 8 % for over 70 % of the total population of these countries).

The following were highlights of the session;

The States, public authorities, rural communities and the direct beneficiaries need to be principal actors with the support of donor agencies to achieve the levels of rural electrification required in Africa.

The need for the States to incorporate rural electrification in their rural development programs and to increase the funds allocated to RE was deemed imperative and indispensable to control poverty efficiently;

The importance of adopting appropriate new technologies and the rational use of available resources as a major factor in the reduction of power structures costs which are currently excessively high (in average 30 % higher than in some Asian countries);

The use of cross-border electrification as a means to accelerate low cost rural electrification in Africa;

The urgency to establish the FADER (African Rural Electrification Development Fund) in order to facilitate funding of rural electrification in Africa.

During subsequent sessions, the following were also considered;

Unsuitable tariffs was identified as a factor of de-motivation of private investors’ involvement in rural electrification in Africa; consequently it was strongly recommended to liberalize tariffs under State control and then set up funding mechanisms that would reduce the actual share of private funds in project costs.

Involvement of local banks and decentralized financial institutions through the availability of lines of credit for rural electrification projects must be initiated and supported by all partners.

Countries should take into account the positive social impact (control of rural migration, access to potable water, improvement of health and education conditions, access to information, etc.) and the opportunities offered in the development of income generating activities (incorporation of SME’s, modernization of arts and crafts, irrigation, etc.) in pursuing rural electrification programs rather than immediate economic and financial profitability.

Low cost electrification techniques, low cost private network electrification and options to face financial and institutional challenges were considered in another session during which the following observations were made;

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It was accepted that low cost electrification techniques reduce the cost of initial investment in rural electrification especially in stand alone systems and need to be applied wherever feasible. The cost in some instances could be high especially with three phase to single phase conversions.

It was established that there exists various funding facilities that have not been explored. Modalities for accessing these funds were outlined by the various agencies.

5.5 Review of conference on Rural Electrification

INTERNATIONAL CONFERENCE ON RURAL ELECTRIFICATION (ICRE)

At the 3rd scientific committee held in Abidjan, the Study Committee on rural electrification reviewed the proposed International Conference on Rural Electrification scheduled for Morocco (ICRE) and recommended the addition of a theme to deal with funding mechanisms for Rural Electrification. The committee also recommended that a theme on Cross Border Electrification be added

Members of the study committee were encouraged to participate in the conference and also present papers. Conference papers and Workshops were to be reviewed and best practices and lessons recommended for adoption.

The conference attracted participants from various disciplines of the electricity industry including utility operators, financiers, and universities from different continents.

During the program, there were four (4) separate conferences, four (4) workshops, exhibition of materials (mostly locally produced) and technical visits.

Conferences/Workshops

From the presentations the low level of electrification especially in sub Saharan Africa was decried, Participants also noted that much more could be achieved with the necessary political will and commitment as in the case of Morocco.

It was also agreed that rural electrification promotes the functioning of development infrastructure such as portable water, banks, irrigation and small to medium scale production or manufacturing.

It was observed that nations have to employ or adopt electrification techniques that are adapted to their environment as there is no one tailored solution for all rural electrification.

From the workshops it was decided that; rural electrification projects need to be carefully prepared and incorporated in a master plan for execution, optimal cost and tariff option must be applied and renewable energy technologies need to be considered where feasible.

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Exhibition/Technical visits Various electrical materials were exhibited by exhibitors mostly produced in Morocco: cables, isolators, transformers, etc. Foreign exhibitors with breakers, panels, etc. also participated.

Visits were made to the Solar village where in habitants could be served with different packages of solar lighting, and another community energized by grid being completely billed on prepayment meter. Conclusion on conference

The conference was very successful and participants exchanged rich information and ideas.

6.0OBSTACLES/SETBACKS IN PROGRESS OF COMMITTEES WORK

Consistent Leadership

The appointed executives of the subcommittee, the Coordinator (STEG, Tunisia) and the Rapporteur (SOPIE) had poorly participated to the meetings of Scientific Committee. Lack of consistent leadership has therefore been a major setback to the progress of the committee’s work.

Poor Communication/ Attendance of MeetingsIt was also observed that lack of communication has led to the poor participation in the committee’s activities.

It will also be advisable for utilities to maintain members of the committee for consistency rather than appoint different members to attend meetings at different times.

Furthermore, information flow between the UPDEA Secretariat, the Coordinator and among members of the committee will have to be tremendously improved.

7.0 WAY FORWORD

The study committee will have to work closely with the UPDEA Secretariat to implement recommendations made during previous sessions;

Setting up of National rural Electrification Agencies for identified nations Developing National Master Plans for Rural Electrification (pilot project) Developing the Geographic Information Systems as a tool to facilitate Rural

Electrification Pursue of the implementation of identified cross border electrification

projects Realization of the setting up of FADER

8.0 CONCLUSION

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Significant progress was made in the areas of Cross border electrification and review of the Terms of reference for the FADER. The conferences and workshops organized during the period addressed most appropriately issues of rural electrification in terms of funding sources, technological options and implementation strategies.

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ACTIVITY REPORT

CUSTOMER MANAGEMENTSTUDY COMMITTEE (CE3) UPDEA

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1. Mandate of the Customer Management Study Committee

UPDEA noted that African power companies’ commercial functions were saddled with scores of weaknesses. This is why at the 12th Congress that was held in Alger in June 1996 the Customer Management Study Committee was established. It has addressed many issues in the commercial area ever since.

2. Reminder of the Objectives Targeted for 2005 - 2008

For the 2005– 2008 period, following the 15 th Congress held in Accra (GHANA), the Customer Management Study Committee was mandated to review the following issues:

ISSUE 1: How to Improve the “Billing – Collection” Process?

ISSUE 2: Supply and Demand Management

Seminar: African Power Companies’ Experience as regards both issues

3. Membership of the Customer Management Study Committee

3.1 – Core Facilitation Team of the Committee

The core team that facilitated the activities of the committee for three years are as follows:

A coordinator represented by CIE (Côte d'Ivoire) A deputy coordinator represented by ESKOM (South Africa) A rapporteur represented by SBEE (Benin) A deputy rapporteur represented by LEC (Lesotho) Two working groups represented by:

o ESKOM (South Africa),o VRA / ECG (Ghana).

3.2- Other Companies participating as Members

Members represented by the other African power companies parties to the UPDEA listed below participated to a lesser extent in the activities of the Committee:

ECG (Ghana), PHCN (Nigeria), EDEL (Angola), KenGen (Kenya), AES SONEL (Cameroon), EDM (Mali), SONABEL (Burkina Faso), SNEL (RDC), ENERCA (Central Africa), NAWEC THE (The Gambia), SNE (Congo).

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4. Activity Report

4.1 – Methodology for the Implementation of the Program

The method used during that period consisting in holding planned meetings with the approval of the Scientific Committee and in email exchange between the various members comprising the groups. Here is a list of meetings held over the period:

NAIROBI (Kenya): 15-17 February 2006 COTONOU (Benin): 26 au 28 July 2006 ABIDJAN (Côte d’Ivoire): 3-5 April 2007 LUANDA (Angola): 24-26 October 2006 CAPE TOWN (South Africa): 28-29 May 2007 OUAGADOUGOU (Burkina Faso): 12-14 March 2008

All the aforementioned dates include ordinary meetings of both the Study Committee

and the Scientific Committee.

4.1.1 – Members’ AttendanceThe table below gives an overview of the schedule of meetings and the rate of

attendance by the various companies.

Member Companies’ Rate of Attendance at Meetings

Core Facilitation Team

QualityNairobi15 – 17 February 2006

Cotonou26 – 28 July 2006

Luanda24 – 26 October 2006

Abidjan3 – 5 April 2007

Ouagadougou12 –13 March 2008

SeminarCape Town28 – 29 May 2007

Attendance rate%

CIE (Côte d'Ivoire)

Coordinator X X X X X X 100%

ESKOM (South Africa)

Assistant Coordinator

X X X X X 83%

SBEE (Benin) Rapporteur X X X X 67%LEC (Lesotho) Deputy

Rapporteur0%

VRA (Ghana) Group Leader

X X X X X 83%

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ESKOM (South Africa)

Group Leader

X X X X X 83%

Member CompaniesECG (Ghana) Member X X X X X X 100%PHCN (Nigeria) Member X X X 50%EDEL (Angola) Member X 17%ENE (Angola) Member X 17%KenGen (Kenya) Member X X X X X 83%AES SONEL (Cameroon)

Member X 17%

EDM (Mali) Member X 17%SONABEL (Burkina Faso)

Member X X X 50%

SNEL (DRC) Member X 17%ENERCA (Central Africa)

Member X 17%

NAWEC THE (The Gambia)

Member X 17%

NEC (Sudan) Member X 17%SNE (Congo) Member X 17%KPLC (Kenya) Member X 17%

TOTALCOMPANIES

7 6 9 7 12 7

The core facilitation team’s rate of attendance at activities stands at 83 percent, barring LEC (Lesotho) who is acting as deputy rapporteur and whose attendance rate is nil. It should be noted that over a three-year term the LEC rapporteur (Lesotho) never attended any activity.

4.1.2 – Difficulties Encountered

The key difficulties encountered during that period were as follows:

The dysfunction of the working groups. Although a work approach had been developed at the first meeting in Nairobi none of the working groups was able to implement it. Reminders were sent to the working group leaders (VRA and ESKOM) to no avail. The situation did not improve. This failure has highly impacted the drafting of the final report.

LEC (Lesotho) appointed as the Study Committee Deputy Rapporteur failed to discharge its mandate as a result of its non-attendance at the various meetings.

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4.2 – Achievements

Notwithstanding the aforementioned challenges, various recommendations were made on the issues addressed as the subsequent paragraphs show.

4.2.1 – Discussion Theme “How to Improve the Billing-Collection Process?”

The General Management of the company’s policy resolve is the prerequisite for the

improvement in both processes. In other terms, the Management must show

commitment in terms of responsibility. This Management must:

Clearly define its policy and strategy with regards to “Billing and Collection”;

Disseminate this policy to all sections collaborating with the customer department;

Have all the related procedures and work instructions pertaining to the issues above drafted and deployed and ascertain their enforcement through periodic reviews.

The Committee conducted discussions on the “Billing-Collection” process. Based on the identified dysfunctions and the feedbacks of the various companies that participated in the proceedings in terms of experience and the exchanges we have had, we make the following recommendations.

Recommendations

Considering that billing and collection are key processes for power companies and noting the increasingly significant weight of non-technical losses, especially loss due to frauds, we recommend:

1. Putting in place structured addressing at country level. This must be a matter of concern to company General Management for them to report it Governments.

2. Establishing a geographic information system (GIS).3. Numbering items to be integrated in customers’ codification.4. Developing and deploying simple and user-friendly customer-management

software.5. Recruiting adequate staff and training them to be knowledgeable in billing.6. Not to outsource meter reading7. An effective processing of reports after billing.8. Ensuring appropriate correction of mis-captured data after capturing9. Providing quick responses to customers’ claims regarding billing.10.Monitoring on a regular basis bill serving work to take the appropriate

remedial and punitive actions.11.Conducting periodic meter counting.

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12.Holding the staff manning critical points of the process accountable.13.Holding the staff to account and signing performance agreements with

them.14.Ensuring a strict monitoring of the billing ratio by installing meters on output

points in source stations, borderline stations and especially in public distribution stations to ensure greater accuracy in measurement.

15.Creating an enabling legal environment to crack down on frauds on electric installations.

16.Asserting corporate managements’ will by establishing operational structures to fight fraud.

17.Conducting a wide-scale awareness-raising among users and corporate staff on incurred risks.

18.Adopting key strategies to reduce non technical losses including actions below:

Conducting frequent audits and securing the support of local communities and other stakeholders.

Disconnecting fraudulent connections frequently. Monitoring electricity sales and the proceeds of such sales closely in

order to make sure the amounts charged for such sales are effectively collected.

Not condoning any fraudulent activity by the staff or any sub-contractors (contractors).

Ensuring the replacement of damaged or faked meters to prevent the provisioning of power supply without compensation.

Initiating any process that can promote legal actions against habitual offenders, including seeking to secure the support of political and judicial authorities.

Reducing temptation to resort to fraudulent connections induced by the presence of un-serviced neighbourhoods by electrifying residential areas.

Providing the staff, sales staff and sub-contractors continuing education on the company policy, including enforceable procedures.

Ensuring an effective processing of reports on low consumptions and sales without receipts.

Introducing new technologies such as automated meter reading (AMR) and smart metering devices [Remote management].

19.As regards collection, one should put in place: Power severance task forces; A direct incentive system for power severance task forces based on

penalties paid by customer; A monitoring team in charge of ensuring the effectiveness of

severances; An information system enabling the monitoring of the collection

function.

4.2.2 – Discussion Theme “Supply and Demand Management”

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To ensure an effective demand management, information, education and sensitization approach is required. Initiatives in that field must concern all aspects:

Industrial, Commercial, Residential 

On customer management side we may make the following recommendations:

Recommendations

In view of our quite often inadequate output and also of our facility downturns, all factors reducing supply as compared to customers’ demand, we must:

1. Conduct a large-scale communication campaign on the “power saving” issue. 2. Besides the traditional communication channels resorted to when launching

new products, use “opinion leaders” and some “retired workers” who can be instrumental in conducting an effective campaign.

4.2.3- Seminar on “Customer Management and Improvement in Service Provision”

This seminar held in Cape Town (South Africa) on 28-29 May 2007 aimed at exchanging experience on “The Billing – Collection process” and “Supply and Demand Management”. Based on the experience exchanges, we have had we make the following recommendations:

Recommendations

Based on the various experience exchanges we have had and given importance of billing and collection as the bloodline of companies we recommend:

1. Developing and implementing working procedures and instructions correlated to the billing and collection process

2. Conducting periodic audits of the “Billing” and “Collection” processes in order to usher into an ongoing dynamics of improvement.

3. Conclude for government bill collection a memorandum of understanding with the government providing for:

The allocation of power consumption of credit to all governmental entities during the yearly budget adoption;

The payment of quarterly settlements by the Ministry of Finance for power consumption by governmental entities;

The settlement of the outstanding amount payable by the Government after certified reconciliation by both parties of the amounts of the actual yearly consumption and paid settlements by the end of February in the following year.

4. Creating enabling conditions to attract investors to the sector while applying as much as possible real prices through a consistent pricing. The leaders must be committed to the settlement of the issue of the management of our companies.

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5. Involving all sector stakeholders, customers, supply companies, local governments, Governments in establishing an effective collection policy.

6. Putting in place a computerized customer management system taking into the “collection” process, accessible to commercial and financial services and integrating monitoring functionalities.

7. Building on ICTs, involving customers and integrating all payment modes in the collection process to be more efficient.

8. Establishing a policy to check non-technical losses (Frauds). To that end, the following is required:

The Management and staff’s commitment To establish a stringent punitive and disincentive policy for

frauds and set up standing facility surveillance teams To avoid isolated actions and rather initiate permanent actions in

the field To make new investments to reduce and control losses. To assess “non-technical” losses to better appraise their scope

in order to undertake the required actions.

5. Publication or Study Reports due to be Published

The aforementioned issues reviewed in the 1999 - 2005 period with reports drafted may be published, namely the reports on:

The reduction in non-technical losses; The seminar on “Safety, Quality in the Provision of Supply and Services to

Customers: Experiences of African Power Companies for Improved Service” held on 1-3 April 2004 in BAMAKO (Mali).

The summary of the Customer Management Study Committee proceedings in 1999-2002 on the “Technological Innovation at Customers’ Service”

6. Prospects in the Committee’s Business Line

For the Customer Management Study Committee the future challenges to be taken up relate to the following:

Which customer information management system [Customer Management Software] to ensure improvement in management?

Customer management through a geographic information system Collection management, mostly the command of the government

payment circuit Non-technical loss and billing ratio 

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ACTIVITY REPORT

STANDARDISATION STUDY COMMITTEE (SC4) of UPDEA

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1. Preamble

The study committee was organised into two workings groups, to continue its work from the previous three year period, with the main theme of facilitating and supporting the establishment of the African Electrotechnical Standardization Commission (AFSEC).

For continuity of this major activity, the Convenor and Deputy Convenor remained unchanged from the 2002-2005 term, being:Mr P. A. JOHNSON, Eskom, South Africa (Convenor), andMr. C. KOUTOUA, CIE, Côte d’Ivoire.

2. Membership

The membership of SC4 included representatives from

ESKOM, SA (Coordinator)CIE, Côte d’Ivoire (Deputy Coordinator)PHCN, NigeriaVRA, GhanaECG, GhanaEDEL, AngolaKenGen, KenyaAES-SONEL, CameroonZESCO, Zambia

3. Formal meetings of Study Committee 4

Date location host notes15 – 17 February 2006

Nairobi, Kenya KenGen In conjunction with Scientific committee meeting

July 2006 Bingerville,Côte d’Ivoire

CIE

24 – 26 October 2006

Luanda ENE/EDEL In conjunction with Scientific committee meeting

3 – 5 April 2007 Abidjan,Côte d’Ivoire

CIE In conjunction with Scientific committee meeting

12 – 14 March 2008

Ouagadougou, Burkina Faso

SONABEL In conjunction with Scientific committee meeting

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4. Events held under the auspices of the Study Committee

Date location host Type of event19 October 2005

Cape Town, South Africa

Eskom and the South African National Committee of the IEC

AFSEC workshop: held in conjunction with the IEC General Meeting

28 – 29 May 2007

Cape Town Eskom Colloquium and stakeholder forum: African Electrotechnical standardization: challenges and opportunities

26-28 February 2008

Accra VRA & ECG in collaboration with Ghana Standards Board

Inauguration and Constitutive General Assembly of AFSEC

5. Summary of activities and achievements

Working group 1: Standards for AFSECThis working group was mainly concerned to obtain and analyze the standards already being used by UPDEA members with a view to making proposals for harmonisation. It attempted to obtain such information by way of questionnaires. Because of the few responses, the work is far from complete and will be vital for proper engagement of UPDEA members in the technical committees of AFSEC. It is recommended that this working group be re-established with a similar brief for the 2008-2010 period.

Working group 2: Supporting the establishment of AFSECThe main activity of working group 2 was to organise the stakeholder workshop. Several of the Study Committee members contributed presentation at this forum, which took place in Cape Town In May 2007, and acted as precursor to the inauguration of AFSEC. This working group has thus successfully completed its mandate. 6. Stakeholder engagement

6.1 Stakeholder Working Group for the Establishment of AFSECIt was recognised that for AFSEC to be successfully established, UPDEA needed to engage with other relevant stakeholders. Hence, as a result of resolutions of the UPDEA Congress held in Accra in June 2005, a stakeholder working group charged with organising the establishment of AFSEC was formed, under the chairmanship of the Executive Director of the African Energy Commission, AFREC, Dr H. Elhag.

The Convenor and Deputy Convenor of SC 4 represented UPDEA members, and the UPDEA Secretariat representative was Mr A. ANANI. A representative from VRA was co-opted to the working group for liaison with the Ghanaian organising committee responsible for the Constitutive General Assembly of AFSEC. The African

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Organisation for Standardization (ARSO) and African National Standards Bodies (Kenya and Nigeria) were also members of this working group.

The SC convenor, Paul Johnson, Eskom assumed the role of Interim Executive Secretary for AFSEC, and Eskom established and hosted the AFSEC website.

Meetings of the working group for the establishment of AFSEC were held as follows:

Date location remarks18-19 July 2005 Addis Ababa Including AU delegationFebruary 2006 Nairobi, Kenya In conjunction with the

IEC Centenary Event16-18 April 2007 Addis AbabaSeptember 2007 Accra27 – 28 February 2008 Accra Final preparations for the

Constitutive General Assembly of AFSEC

6.2 Representation at stakeholder forums

Stakeholder engagement also included participation by representatives of the Study Committee in several events of other stakeholders to promote the establishment of AFSEC. In particular:

Date location event remarksFebruary 2006 Nairobi IEC Centenary Event February 2006 Cairo ARSO GAMarch 2006 Addis

Ababa /AUC

Conference of African Ministers responsible for electricity

The Conference resolved that ASFEC be established as a subsidiary of AFREC

February 2007 Senegal ARSO GANovember 2007

Khartoum ARSO special GA

15 - 17 February 2008

Algiers Conference of African Energy Ministers

The conference which inaugurated AFREC, declared the establishment of AFSEC

7. Inauguration of AFSEC

The Inauguration and Constitutive General Assembly of AFSEC was held in Accra, Ghana 26-28 February 2008. A separate report of this event has been provided to the UPDEA Secretariat.

The study committee notes with honour the election of the deputy convenor, Mon. KOUTOUA Claude as President of AFSEC, and the appointment of the convenor, Mr. Paul JOHNSON, as Executive Secretary.

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8. Concluding remarks

Having successfully led the establishment of AFSEC, the UPDEA study committee for standardization should now re-evaluate its role, and consider what activities will add value to UPDEA members in the next term of office.

It is suggested that in addition to re-convening a working group responsible for gathering and analyzing potential standards for proposing to AFSEC as harmonised African standards, the study committee should consider establishing a new working group that focuses on issues related to conformity assessment; in particular to assess where improved access to test facilities and third party certification schemes is required by African electricity utilities, which is vital for the effective utilization of standards. Recommendations in this regard can then be submitted to the conformity assessment committee of AFSEC.

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ACTIVITY REPORT

RESTUCTURING AND FINANCINGOF AFRICAN POWER SECTOR STUDY COMMITTEE (SC5) of UPDEA

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1. ASSIGNMENT OF THE STUDY COMMITTEE

The Study Committee on Restructuring and Financing of the Power sector owes its existence to the need for UPDEA to be the watchdog that follows the implementation of the ongoing institutional reforms since the 90s, and concurrently, it has to play its traditional role of initiator of the Union activities in terms of financing of the power sector.

The assignment of the Study Committee on Restructuring and Financing of the power sector is, therefore, two-fold:

Assess, from time to time, the progress of restructuring in the African Power Sector,

Work to put in place tools, means, methods and the appropriate avenues for management, financing and development of the power sector in Africa.

2. STUDY COMMITTEE’S MEMBERS AND BOARD

2.1 Members Utilities

Working Group 1: Restructuring Working Group 2: Financing1 ECG (W. Kyeremateng) -- Team

Leader1 CIE (Kakou Dominique) – Team

Leader2 PHNC (Godwin. Okoturo) 2 KENGEN (Henry Nyachae)

3 SENELEC (Moussa Sene) 3 VRA (Edwin Gbekor)

4 VRA (Martina Addo) 4 STEE (Kassir Gogo Hamid)

5 RTE (Philippe Michal/Guy Stalens) 5 CEB (Kolani Sanwogou)

6 SOGEPE (Gabriel Sibide) 6 SOGEPE (Tanoé Bilé)

7 KENGEN (Elizabeth Njenga)

8 SONELGAZ (Moussi)

9 ESKOM (Maboe Maphaka)

2.2 Board of the Study Committee

TANOE BILÉ SOGEPE COTE D’IVOIRE (Coordinator)MABOE MAPHAKA ESKOM SOUTH AFRICA (Vice Coordinator)MARTINA ADDO VRA GHANA (Rapporteur)ELIZABETH NJENGA KENGEN KENYA (Vice Rapporteur)

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3. MAIN OBJECTIVES OF THE STUDY COMMITTEE

Activity 1: Questionnaire on Restructuring Experiences

Objective: To gather information on experiences of restructuring and provide inputs for a Workshop

Activity 2 : Workshop

Theme of Workshop: “Incorporating good governance practices in restructuring utilities”.

Objectives: To enable participants share experiences in restructuring utilities. Benchmarking good governance practices into restructuring utilities

Activity 3: Financing Cross Border Electrification Projects

Objective: Facilitate the financing of Cross Border Electrification Projects by identifying the bottle-necks, through a questionnaire sent to the utilities where cross border projects have been identified at the meeting of Kinshasa.

Activity 4: Development of Guidelines for Evaluating Lenders’ proposals and Negotiation of financing packages

4. ACTIVITY REPORT

4.1 Restructuring of the Power Sector

The Study Committee, through the UPDEA Secretariat, circulated a questionnaire to member utilities to gather information on restructuring experience. Ten (10) utilities submitted responses to the questionnaire. They are: SBEE, PHNC (NEPA), CIE, KENGEN, ESCOM, VRA, ECG, NEC, LEC (Liberia), SENELEC.

Presentations were made on restructuring experiences based on extracts from the responses during the Scientific Committee Meeting in Angola in October 2006 and to the UPDEA Executive Committee Meeting in Cairo in November 2006.

Reminders were also sent to utilities that did not submit responses to the questionnaire. However, no responses were received.

In order to expedite data collection, the UPDEA Secretariat obtained funding from the ACP Business Climate Facility (BzClim) for funding a study of restructuring experience and for a consultancy firm, IDC, to undertake the study.

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The specific objectives of the study included the following:

a) Taking stock of reforms undertaken in Africa, assess their implementation status and evaluate their impact.

b) Identify the drivers and enablers of success in reforming the power sector, as well as the reasons for failure, with the view of engaging policy-makers in a debate on how best to increase access to electricity in the continent.

The Study Committee Board and UPDEA Secretariat, held a kick-off meeting in September 2007 in Cote d’Ivoire with the consultant.

The purpose of the meeting was to:

a) Review the Terms of Reference of the Study

b) Review the methodology and Work Plan of the Consultant.

Based on this study, a workshop has been held by UPDEA Secretariat and BizClim in Brussels on 27th and 28th March 2008 on the theme “How do reforms address the challenges faced by the power sector”.

The report of this workshop is in Appendix 1.

4.2 Financing Cross Border Electrification Projects

Much work was not undertaken on this activity during the period. However, the Study Committee still believes this is an important activity to ensure access to electricity in Africa. It will, therefore, continue with this activity during the next period.

4.3 Development of Guidelines for Evaluating lenders’ proposals and Negotiation of financing packages

Much work was also not undertaken on this activity during the period. However, the Study Committee still believes this is an important activity to facilitate access to funding. It will, therefore, continue with this activity during the next period.

However, the Committee has made available to the UPDEA Secretariat, a directory of development partners, guarantee institutions and organisations together with a list of the various forms of funds mobilisation.

5. RECOMMENDATIONS

5.1 Restructuring Experiences

Reforms are essential in all the African countries to allow the improvement of the quality of services and to develop the power sector.

Reform does not necessarily mean privatization of the capital or management. The first reform that African governments should set up consists in the introduction of a management discipline of the sector which clearly defines and observes the roles and responsibilities for the various actors.

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The public authorities (Planning, control, regulation), Operators (day to day and planned management), Customers (consumption and payment of bills). Any undertaking, even privatized without such a discipline is vowed to fail.

The unbundling of the national power utility in several companies is not necessary if the domestic market is of a small size particularly in geographically small countries.

Considering the difficulties of financing in many African countries, the involvement of the private sector is highly recommended. However, the governments must negotiate VERY WELL the contracts in order to set up win-win partnerships for all the parties.

5.2 Financing Cross Border Electrification Projects

Countries and utilities with cross border projects are encouraged to undertake feasibility studies for the establishment of Cross Border Electrification Projects, using available donor funding.

Countries and utilities are encouraged to undertake small cross border projects which they can finance themselves and to seek funding support for larger projects that they cannot finance.

6. PROSPECTS IN THE AREA OF THE ACTIVITY OF THE STUDY COMMITTEE

6.1 Restructuring of the Power Sector

Further activities will be developed after the Consultant’s Final Report.

The Executive Summary of the Study is in Appendix 2.

6.2 Financing the Power Sector

Activity 1: Financing Cross Border Electrification Projects

In view of the experience of difficulties of obtaining responses from utilities in relation to questionnaires, the Study Committee would wish to request the Secretariat to seek funding support to carry out the study based on an updated list of Cross Border projects already identified during the 2005 meeting in Kinshasa. The Study Committee will work closely with the Secretariat to develop the Terms of Reference of the Consultant, review his Methodology and Report.

Activity 2: Development of Guidelines for Evaluating Lenders’ Proposals and Negotiation of Financing Packages

The Study Committee will expand the scope of this activity to include the development of a Guidebook. The Committee will work closely with the UPDEA Secretariat to undertake this assignment.

=============================

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APPENDIX 1

GENERAL REPORT

la Facilité Climat des Affaires ACP (BizClim), IDC

un programme du Groupe des Etats ACP CONSULTINGet de la Commission Européenne

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CONFERENCE ON POWERING AFRICA: How do reforms address the challenges faced by the sector?

BRUSSELLS 27-28 MARS 2008

GENERAL REPORT ON THE CONFERENCE HELD IN BRUSSELS ON 27 th AND 28 Th OF MARCH 2008

I. INTRODUCTION

On the initiative of the UPDEA (Union of Producers, Transporters and Distributors of Electric power in Africa), a study on the impact of reforms in the African Electricity sector was done by a consulting firm and funded by the EU through BizClim

The results of this study formed the subject of a presentation during the Conference held in Brussels at the Plaza hotel, from 27 to 28 of March 2008, on the theme “powering Africa: how do reforms address the challenges faced by the sector?

The list of participants is attached.

The opening session was chaired by Dr Bernard ZOBA, AU commissioner responsible for Infrastructure and Energy in the presence of the UPDEA Secretary General, Mr MUTIMA SAKRINI Herman and Mr Gary QUINCE Director AIDCO/ACP representing the European Commissioner for Development and Humanitarian Aid, Mr Luis MICHEL

During the Conference, the participants listened to several speeches made by the IDC consultant team (Bertrand PAULY, Batchi BALDEH, Bilé TANOE) and by other speakers, namely:

MESSRS Joel KOLKER, Regional Program Leader (PPIAF)

Ibrahima THIAM, Chairman of the Electricity Regulation Body in Senegal

Moctar TOURE, Chairman of the Electricity and Water Regulation Body in

Mali

Dr. Olivier STINZY representative of PPP club (France)

Brou TIEMOKO, deputy managing director of Azito O&M (Ivory Coast)

The sessions were chaired successively by:

MESSRS ASSI Benié Joseph representing the Minister of Mines and Energy of Côte d’Ivoire (Session 1)

M’Hammed CHERIF, Director of BizClim (Session 2)

MUTIMA Sakrini Herman, Secretary General of UPDEA (Session 3)

BARANDEREKA Bernard, Energy Consultant within African Union (Session 4)

Honourable Dr Mamphono Khaketla, Acting Minister of Natural Resources of Lesotho (Session 5)

His Excellency M. René MAKONGO, Ambassador of Gabon to the Benelux Countries and the European Union (Session 6) representing The Minister of State, Minister, of Mines, Oil, Hydrocarbons, Energy, Hydraulics Resources and Promotion of New Energy , Mr. Casimir OYE M’BA.

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The paragraph here-after include the objectives of the study, the observation, the factors of failure as well as recommendations

II. OBJECTIVES AND METHOD OF THE STUDY

The aim of the study was to assess as objectively as possible the impact of reforms on the efficiency of the electricity sector in 19 countries from different sub-regions of the continent;

The consultant was also charged with the assessment of the institutional framework, the objectives of the reform, the drivers and the processes in each country in order to draw lessons on success and failure factors.

In addition the consultant was requested to suggest ways of improving relevance and efficiency of institutional framework of the Electricity Sector in Africa.

The studied countries were selected on account of their experience in reforms to wit: Algeria, Egypt, Senegal, Mali, Guinea Conakry, Côte d’Ivoire, Togo, Gabon, Nigeria, Cameroon, Rwanda, Chad, Botswana, Zimbabwe, South Africa, Kenya, Tanzania, Lesotho, Uganda.

The study was conducted as follows:

The kick-off meeting was held at the UPDEA Headquarters in Abidjan at the end of September 2007

A questionnaire was prepared by the consultant for respondents in the countries

This questionnaire was to be answered by the local sector officials (utilities, regulator, Ministries)

The consultants went to each country to interview the local officials and validate already collected data

The information gathered was analysed vis-à-vis the objectives of the reform in the country, namely the generation capacity, access rate and sectoral efficiency.

The conclusions of the study served as material for the conference debate.

III. OBSERVATIONS

a) Impact on production capacity

1. The liberalisation of production has enabled private or public investments in some of the countries studied (Côte d’Ivoire, Egypt, Kenya, South Africa, Uganda Tanzania).

2. The cost of the kWh produced by independent electricity producers is affordable when investors believe that the country risk is low and that the business environment and governance are favourable.

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3. In some cases, the launch of a reform caused investments to be suspended or delayed, which was harmful to the sector and to the reform’s success.

b) Impact on the development of access to electricity

1. Delegations of the Public Electricity Service to the private sector trough privatisation, concessions or leasing have not had a significant and decisive impact on the development of electrification rates.

2. The countries where the network has developed rapidly are countries where distribution has remained public (South Africa, Algeria) and where there was no emphasis on direct return.

c) Impact on the sector’s performance

No general conclusion on a possible link between the type of network management and the performance level came out of the study. Some management contracts have borne positive results (Lesotho) whilst others have not (Tanzania). The same is true for privatisation or concessions. Hence we can conclude that it is the way contracts are defined and executed that is key in whether the reform will be a success, more so than the choice of reform itself.

IV. FACTORS OF FAILURE

a) A major factor of failure is the absence of realism by the decision makers. It is also because certain countries considered privatization on its own as the solution to the difficulties of the sector and as a result they not devised adequate measures for monitoring and evaluation.

Other causes of failure are:

b) Unrealistic contractual objectives that are incompatible with the revenues and the consumers’ ability to pay are often set without any financial model and tariffs that would make the sector viable.

c) The principle to recover all the costs from the consumer cannot always be adopted and sometimes is incompatible with the evolution of the cost of oil and the prices of key equipment and the customers’ ability to pay.

d) No consensus on the restructuring process by the different actors lets say, Advising Banks, Lenders, Governments and utilities, who, each, have their own agendas.

e) Unnecessary haste in the preparatory stages of the reform.

f) Undue delays for fund mobilization.

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g) Bad management of the utilities after reform.

h) Non respect of commitment by operators, particularly in investment terms.

i) The setting of unrealistic investment objectives to the private sector.

V. RECOMMENDATIONS

a) THE ROLE OF THE STATE

KEEP THE STATE AT THE CENTER OF THE REFORM PROCESS

The State should be the driver of all the reform process, from the beginning of the decision to reform up to the end of the implementation period.

The State should also make all the effort to be monitoring the agenda in order to avoid hasty and unjustifiable decisions for external reasons.

DEFINITIONS OF PRIORITISED OBJECTIVES ADAPTED TO LOCAL AND REALISTIC SITUATIONS

It is important not to organize the sector based on the assumption that there would exist within a short time a market for power generation or retail purposes.

It is essential that the state uses a reliable tool for the financial model for the sector in order to establish realistic objectives with operators.

The principles of financing for the sector also have to be re-examined by the Governments in light of recent trends. The principle of the consumer covering all the costs of being connected to the network becomes unrealistic in a number of countries whereas the costs of oil and imported equipment have increased substantially over the years. Now is the right time to reconsider this principle and imagine ways of co financing between the public and private sectors.

CHOICE OF REFORM SCHEME

The objective of the institutional reform should be to improve the performance of the sector to unsure a better access to electricity including the rural areas. The scheme should be adapted to the specific economic situation of the national sector.

The privatization of the management of the network is not a general response even if it can be a solution in some cases.

The liberalization of generation is favourable when the economic and contractual conditions are correctly negotiated and that the country risk premium demanded by the investors is not too high.

It is not necessary to proceed with full unbundling in the absence of competition and a small market.

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GIVING PRIORITY TO REGIONAL PROJECTS

Big infrastructure projects that can improve the sector are regional. The states should aim to develop their capacity to manage those projects and eventually have specific structures in this perspective.

b) INVOLVMENT OF SOCIAL PARTNERS

The Unions and staff should be brought in at all stages of the reform process including the initial appraisal prior to the decision to restructure the sector.

Members of parliament and decision makers must be informed of the process especially if the reform implies a change of the legal framework.

c) THE REGULATION SYSTEM

Regulatory bodies must be functional right from the beginning of the reform process.

The Regulatory body members must be appointed on the basis of clearly defined criteria of skills and integrity. The term of office of each member must be such as to ensure stability.

The principles that guarantee financial autonomy and functional independence of regulation authorities must be observed during their establishment and their operation.

Supply and quality of service standards must be discussed with all the stakeholders. These standards must be realistic and reviewable according to the change within the electricity sector.

d) THE FINANCING OF INVESTMENTS

The Public Private Partnership (PPP) can be a solution to finance infrastructure in Africa. Just like other financing schemes it is not a miracle solution and will only be used after it has been proved that it is more effective than other schemes.

The chance of success is greater when local operators play a role in the consortiums and when financial resources are mobilised with the involvement of national operators.

VI CONCLUSION

Reforms are essential in all the African countries to allow the improvement of the quality of services and to develop the power sector.

Reform does not necessarily mean privatization of the capital or management. The first reform that African governments should set up consists in the introduction of a management discipline of the sector which clearly defines and observes the roles and responsibilities for the various actors: the public

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authorities (planning, control and regulation), operators (day to day and planned management) and customers (consumption and payment of bills). Any undertaking, even privatized without such a discipline is vowed to fail.

The unbundling of the national power utility in several companies is not necessary if the domestic market is of a small size particularly in geographically small countries.

Considering the difficulties of financing in many African countries, the involvement of the private sector is highly recommended. However, the governments must negotiate VERY WELL the contracts in order to set up win-win partnerships for all the parties.

Drafted in Brussels on 28 March 2008

With the support of

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Appendix 2

STUY ON ASSESSMENT OF THE INSTITUTIONNAL REFORMS CARRIED OUT IN THE AFRICAN POWER UTILITIES

SUMMARY OF THE FINAL REPORT

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1. OBJECTIVES AND CONTENT OF THE STUDY

The present study was carried out at the request of UPDEA (Union of Producers, Transporters and Distributors of Electric Power in Africa).

It was financed by the European Union through the "BizClim facility".

Its essential object is to provide to African authorities in charge of the power sector a relevant file and as objective as possible on the assessment of the reforms in the African power sector.

The expectations are defined as follows by the terms of reference:

Description of the reforms carried out taking into account the economic, social and political context

Thorough review of the role of the reform’s actors (initiators, pilots, facilitators) and highlighting key factors of success or failure

Analysis of as regards investments’ financing trends in the sector and identification of essential conditions to attract investors

Assessment of the impact of the reforms in the sector and current problems analysis and perspectives

Specific and realistic proposals to increase the investments and the rate of access.

In addition, the principal conclusions of the study were the subject of a presentation to the actors of the sector during the Conference held in Brussels from 27 to 28 March 2008 on the theme: «Powering Africa: Do reforms address challenges of the sector? »

2. METHODOLOGY

The study was carried out as follows:

1. A kick-off meeting was held at the UPDEA headquarters in Abidjan at the end of September 2007 2. A questionnaire was prepared by the Consultant for the sectoral persons in charge of the 19 countries selected by UPDEA 3. This questionnaire was to be filled by local actors (Operators, Regulators, and Ministries) and by the consultants who went in the countries to validate the data and to carry out the necessary talks.

4. Realization of travels and the data collection of the countries

5. Analysis and drafting of report

6. Presentation of the main results at the Brussels’ workshop

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3. BRIEF NOTE

The study has the aim of providing background, objective and quantified information if possible on the reforms undertaken in 19 African countries and on their effects.

It has also the purpose of bringing out reflection axes starting from the observation of these real experiences.

In this brief note, we are presenting the analyses and proposals we deem most significant.

3.1 THREE CATEGORIES OF COUNTRY, THREE LOGICS OF REFORMS

The results of the study show the relevance of distinguishing for the analysis three groups of countries. Each group is characterized by the prevalence of one or the other of these fundamental objectives of reform

Search of performance by favoring and reinforcing competition everywhere possible

Priority to search for external financing and in particular allowances Search of performance by reforms of structure and/or reforms relating to

capital property.

Reforms seemed to be designed and carried out differently according to these three categories

1. Even if the majority of the authorities of the studied countries are convinced of the interest of a real and fair competition, one must note that to date, "market" competition does not exist in any country of our sample. For the majority of them, the only possible competition is a competition "for the market"

2. Some countries consider however that an effective competition between producers and suppliers is possible in the long term and that it is this competition which mainly triggers the improvement of the performance. The major objective of their reform is then to gradually set up more open and competitive markets. Only countries having or expecting an important market and/or with existing international interconnections or to be built can be classified in this group: Algeria, Egypt and South Africa. Currently, only Algeria clearly decides and acts in this perspective but probably the other countries will follow. This priority given to a medium term policy results in a careful and progressive approach privileging supply security and continuity:

The institutional framework generally includes immediate legal liberalization, or at fixed term of the generation and supply, a mode of Access of third parties to the Network and unbundling of the activities. It is then a scheme which can be compared to one of the European Union where the major objective is the establishment of an energy market and where the issue of possible property and privatization is not a focus.

The reform is carried out without urgency nor dramatization and evolutions are controlled.

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The step is progressive and pragmatic. It is to be noted in this respect, that Algeria and Egypt, however being the richest countries of our sample and with 100%electrification, are still subsidizing consumers.

3. The second group consists of countries with the weakest markets and incomes. The major constraint is the financing. Their priority is then to define an institutional framework adapted to the requirements of the donors and their instruments.

It was for example the case of Guinea, Mali and Senegal.

The reform process is often fast, if not rough. It is also seen like a constraint rather than an opportunity. In general, the status of the sector after reforms or attempts of reform was not improved and was sometimes degraded.

4. The third group consists of countries convinced that the reforms of structure and privatization of the management is the best solution for the performance improvement.

These countries are for the majority countries with intermediate income and the results are rather positive (Uganda, Gabon, Cameroun, Côte d’Ivoire).

3.2 ROUGH RESULTS

For each country, the results were analyzed according to the initial objectives of the reform.

Objective: Development of the installed capacity

1. The reforms made it possible to profit from IPPs in many countries: Uganda, Senegal, Côte d’Ivoire, Egypt, etc. 2. The cost of the energy provided by IPPs is often considered to be excessive. It is not what we noted when the country profits from a good economic potential and a good business climate (Egypt and Côte d’Ivoire). This is right when the country risk is considered high or when the force ratio does profit the investor (urgency, weak competition, prohibition made to the historical operator to invest). In some countries, a too low capacity of negotiation or an insufficient legality control can generate unfavorable contracts. 3. The interest of the institutional opening of the sector of generation to the private investment is not questioned. It is the opportunity and the feasibility of a given project which must be analyzed according to specific parameters to the country and the possibility of mobilization of alternative funds.

4. The period of implementation of reforms and the first IPPs caused delays in the startup of the programmed units. That was very prejudicial in countries such as Senegal.

5. The period attributable to the backers also caused postponements of investments and real damages: Energy Project II in Guinea, cancellation of projects in Togo.

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6. In some countries (Gabon, Cameroun), installation of new thermal capacities was carried out in the urgency and under the constraint of bad hydraulic conditions. The development of hydroelectric facilities after the privatizations appears to be a difficulty. On one hand, it is not possible to resort to IPPs and on the other hand the duration of refunding of the loans exceeding the residual duration of the convention of concession, it is the State which undertakes to develop these facilities.

Objective: Increase of the networks and the rate of access

1. When we could measure it, the impact of privatizations or the settings in private concessions on the rate of access is not significant (the number of consumers has generally more favorable evolutions but it does not correspond to the same realities). That probably shows that in countries with low incomes, the private may not find it beneficial to naturally develop a network for the use of small consumers. It will then be necessary perhaps in the future to think in terms of PPP (Public Private Partnership) and more realistic risks distribution between the public and the private for the projects of development of networks for these countries. In certain countries (Gabon, Cameroun), the objectives of access to electricity or new consumers have been made contractual, which made it possible to reach relevant results.

2. Countries which developed their network quickly, did it rather under public management (South Africa, Senegal after the re-nationalization) and with more social than economic objectives3. The leasing (Guinea) did not give better results because of the financial imbalance of the sector and the absence of public resources.

Improvement of the performance of the sector

1. No general conclusion arises. Results do depend on the implementation conditions.

2. The contract of management in Tanzania did not have favorable impact whereas the one in Lesotho had very good results. The success of the contract of management in Lesotho can be explained in particular by the relevance of the incentive and piloting system, the quality and transparency of the reporting systems and the sensitivity of the managers selected to local realities.

3. The privatizations carried out in Uganda, Gabon, Cameroun or Kenya (minority opening) made it possible to obtain noticeable improvements of the performance indicators. Those of Mali, Senegal, and Togo were subject of more or less fast cancellations after acknowledgment of failure.

4. Concessions gave good results the first years. They ended by cancellations in Mali, Senegal and Togo

5. Leasings obtained evolutions rather favorable in the first years in Ivory Coast but unfavorable in Guinea.

6. In case of maintenance of the historical mode of management of the distribution, indicators do not show significant evolution: Egypt, South Africa, Algeria,

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Conclusions

The results do not allow establishing clear correlation between the type of reform and the level of success.

It is rather the identified factors of success or failure in the studied countries which make it possible to draw lessons and recommendations.

3.3 ERRORS OF DESIGN FOR LACK OF REALISM

The noted failures are rather due to the conditions of implementation and very seldom to the choices themselves.The only causes of error identified on the level of the design of the reform are related to the lack of realism. We will underline two frequent types of illusion.

The illusion to believe that competition on the market is possible whereas it is not, even in the medium term. Even in relatively rich countries such as Egypt or Algeria, investors refuse to take the least risk other than that of the operation. All observed IPPs do operate under a mode of "take or pay". (Except in Algeria but there are other mechanisms of guarantee). In this case, the unbundling of the activities of the system operator or the transporter and distributor is no more essential. It concerns strategic (privatization of the distribution) or economic choices. On restricted markets, the interest of the total unbundling is no more obvious.

The illusion to believe or make believe that privatization (or private concession) is

"the" solution which will solve all the problems of the sector (case of Mali and Senegal).Governments sometimes tend to overcharge when they communicate on their naturally controversial projects of liberalization and privatization. The experience showed that privatization did not always improve the investment capacity of the sector; especially for the networks (the strategic investor does not bring its guarantee to the local company). The disillusion which results from it ineluctably leads to the questioning of privatization, and sometimes of other aspects of the reform, by some lobbies. Privatization can improve performance of the sector but generally it cannot solve by it own the question of the financial balance of the sector or rectify too degraded situations.

On the other hand, contrary to an often mentioned idea, we noted that the choices of reform often took into account the country context, even if that is not always clarified in the statements of purpose.

The true problem is rather at the level of the lack of realism in the definition of the contractual objectives.

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3.4 PRINCIPAL FACTORS OF FAILURE

3.4.1 Characteristics of the reform do not allow to sustainably ensuring the financial balance of the sector.

The failures of certain privatizations (Mali) appear mainly related to the fact that investments commitments taken in the contracts of concession implied unacceptable tariff rises by the consumer and the political authorities.

When the investments of correction or development are important, it can be unrealistic to seek to balance the sector by the only tariff. The choice of the concession must then rest on a preliminary reliable financial and tariff modeling in order to determine realistic commitments.

If the model shows that the balance of long term would require an incompatible tariff level with the capacities to pay of consumers, decision makers must decide mode of "financing" of the deficit: taxpayers in case of subsidy (Algeria, Egypt), future generations in case of no transitory renewal of credits according to recognized standards' (Côte d’Ivoire since a certain number of years). In the absence of modeling and clearness, conflicts between conceding party and the dealer are inevitable and destroying.

The responsibility for these failures devolves firstly to the State which sometimes does not have sufficient political courage. It is to be noted that at the base of the reforms, there was an implicit principle, namely that the interconnected urban consumer was to assume the totality of the electricity costs.

If it is supposed that the price of oil will permanently remain above 100$ the barrel, the political power of the most fragile countries will have to wonder about the viability of this principle. It is not economically irrational to subsidize the part of the cost corresponding to external socio-economic impacts. It is interesting besides to note that in fact it is the richest countries of the sample who subsidize their consumers. It is a political issue of budgetary priorities definition. The attitude of the donors could also evolve on this issue.

3.4.2 Non security of short term operation

Reforms have a positive effect only with time. On the other hand, they can cause a fast deterioration of the sector at short term for two reasons:

The suspension of capacity investment plans. This serious disadvantage was observed in several countries where the reform does recommend or require resort to IPPs. The establishment of the institutional framework and the organization of invitation to tender can require more than 5 years and the country can be in insufficiency of capacity. It seems that promoters of the reforms and the possible donors should accept the fact that it is necessary to define rules of the game adapted to make safe the transitional period.

Expressed or worse, masked social conflicts in the first times of privatization. That can result in sabotages or targeted cuts (Cameroun). That can be

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explained by errors made in the management of the privatization process (communication, preliminary financial auditing, social management).

It is also noted that the takers do not always make use of the best professional practices at the time of the takeover, in particular as regards personnel motivation and management: not use of existing key competences (Cameroun, in the first years), excessive involvement of executives that come from by the taker (18 executives in Mali for example), bad communication.

In case of strong degradation of the electric system in the short term, the reform will be much more difficult to succeed.

3.4.3. A too strong rigidity.

It is striking to observe that the choices of reform take little account of the possibilities of environment rupture and then modifications of priorities which could intervene. However it seems that introduction of excessive rigidities can have serious consequences in countries which can be exposed at risks of their environment change.

A monetary crisis will lead the government to give a new priority to saving in currency. It is further to the important devaluation of its currency in 2003 that Egypt decided to stop its programme of resort to IPPs. It was necessary that the institutional framework allows it (what the first Senegalese scheme which prohibited public investment in generation would have not allowed)

A socio-political crisis will give the priority to the continuity of supply and will attenuate the development requirements. A dealer will then be able to ensure the continuity of supply as easily as a farmer. If we take the case of Côte d’Ivoire, much people think today that a contract of concession would have been preferable right from the start. And yet, it is thanks to the choice of leasing that the supply was maintained during recent disorders.

3.4.4 Management of the privatization process: a not very effective incentive system

All the actors of the process are in general incited to quickly obtain the signature of the contracts of privatization or concession, especially when this latter constitute requirements for other international assistances.

o The " Hosting banks» find their interest natural in the conclusion of the transfer (share of remuneration to the result)

o Delegates of the backers have schedules to respect and have the concern of respecting the payment dates

o Countries will also gain in concluding contracts to obtain the releasing of funds

On the other hand, there is little direct incentive of the actors to make a success of privatizations. In case of failure, the sector can be penalized but not those who were in charge of the privatization. In case of privatization, the top priority of the phase of preparation should then be modified: It is the work on the conditions of success of the

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sector after the privatization, otherwise complex and important, largely forsaken, which should become the priority.

3.4.5 Badly defined and experienced contracts

Very many contracts of concession were insufficiently studied. Multiple uncertainties and ambiguities in contracts do generate perpetual conflicts between the parties and, in the long term, the rupture. Even the concept of contract of delegation of public utility and privatization under contract of concession is often badly understood.

We heard for example this strange comment «there is not any activity report; this is a private owned company ". On the contrary, in other countries, the practices of interference in the privatized company tend not to disappear.

3.5 OTHER LESSONS

The contracts between the public sector and the private companies are very difficult to modify by negotiation (request for division of the revenue resulting from the rise of oil prices within the framework of an indexing of the contracts of gas purchases on the international indicators: case of Côte d’Ivoire for example) or to adapt to new realities (the State reproaches the private sector for not respecting its commitments whereas one of the requirements was not carried out (delay of the investments of the program Energy II in Guinea, suspension of the IDA loans planned in Togo etc).

In the same way, all the attempts aiming at making evolve a contract of leasing to a contract of concession showed a failure.

A priori, the leasing cannot be regarded as solution of transition

In some cases, the refusal of the Concessionaire to begin in certain projects of long duration of refunding can lead the State to directly borrow itself, whereas the sector is under the mode of concession, with privatization of the credits. This issue of incompatibility of the duration of the concession and the investments was solved in many European countries: either by the practice of depreciation of nullity, or by a contractual clause where the conceding party commits itself to give an allowance to the Concessionaire for assets not due for repayment.

3.6 NEW TRENDS

The international financial availabilities for the power sector in Africa did increase considerably these last years.

The international priorities are given to regional programmes: large hydroelectric projects, HV interconnections

Traditional donors became generally more careful and pragmatic in their approach of reforms in the power sector.

The process of establishment of true regional power markets seems now well launched.

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The increase in the price of petroleum products appears to fall under the duration. All of these heavy tendencies certainly goes in the direction of a reinforcement of the active responsibility for the State (investments not backed by the private sector, Setting up of regional projects, new principles of financing the sector etc).

3.7 RETURN TO THE PAST OR ADJUSTMENT OF REFORM? The sometimes modest or disappointing results of the first reforms encourage some resourceful persons to plead for an active return of the State to the level of financing the development of the sector.

This position is reinforced by the great prudence of the traditional international investors and the return of the institutions of development on the sector. It belongs of course to each country to find the system that supports the efficient mobilization of the financial resources. Certain countries at weak market could consider that the concession is not adapted any more to the current context and that the development requires voluntarist programmes of public investment. It is also possible to imagine adapted formulas of PPP.

It would be however very detrimental to give up the other objectives of the reform

For countries such as Algeria, Egypt or South Africa, the principal motivations of reform, namely creation of a competitive market of energy is always topical.

For the least rich countries, the preoccupation of improvement of the performance is reinforced by the increase of the fuel cost. One cannot then avoid the question of opportunity and participation of the private sector. There cannot be ideology in this field.

The new tendencies will reinforce the need for reforming to improve efficiency of the system.

But this reform must be compatible with the preoccupation of effectiveness and a taking into account of the social, economic and environmental externalities.

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ACTIVITY REPORT

HUMAN RESOURCES STUDY COMMITTEE (SC6) of UPDEA

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1. MEMBERSHIP

The membership of SC6 included representatives from

VRA, Ghana (Coordinator) EDEL, AngolaCEET, Togo (Vice Coordinator) PHCN, NigeriaKenGen, Kenya (1st Rapporteur) ESKOM, South AfricaCEB, Benin-Togo (2nd Rapporteur) KPLC, KenyaCIE, Côte d’Ivoire SONABEL, Burkina FasoSOGEPE, Côte d’Ivoire SNE, Congo BrazzavilleECG, Ghana ENE, AngolaSENELEC, Senegal NAWEC, Gambia

2. VISION

To be the Strategic Business Partner of choice for 21st century utility companies in Africa, by moving the HR function from the fringes of action to the centre of play.

3. MISSION OF THE COMMITTEE

To provide a forum for interaction and sharing of ideas among HR Management Practitioners and other stakeholders on modern trends and best practices in Human Resource Management in order to improve the quality of HR services, processes and systems to ensure the revitalization and effective utilization of Human Capital to achieve the Utilities’ corporate objectives.

4. TERMS OF REFERENCE

3.1 To set up the Study Committee & Work Groups. 3.2 Appoint Study Committee Coordinators & Team Leaders.3.3 Define the 2006 to 2008 schedule of programmes for the Study Committee.3.4 Items 3.1 and 3.3 to be in line with the UPDEA 16 th Congress Theme of “ Good

Governance Of National Power Sectors As A Key Factor For Realization Of Access To Electricity For All The Peoples Of Africa”

5. TARGET SET

To organize a Colloquium in Ghana in 2007 based on the theme of Good Governance.

6. ACHIEVEMENTS for 2006-2008 :

Since the Nairobi meeting of February 2006, the following milestones have been clocked:

Refining of HR Study Committee Schedule of Activities Planning & Undertaking Preparatory Activities Towards Colloquium Implementation of HR Colloquium in Ghana

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6.1Reminder of Main Objectives Achieved during the Period February 2006 - August 2008 are as follows:

Meeting Date Objective Highlights1. Scientific Committee

15-17 February 2006, Nairobi

Planning & Setting up of programmes for 2006-2008

New HR Committee Executive nominated

Decisions of HR SC meeting held in Benin were reviewed

Based on 2008 Congress Theme, draft Plan was made

Themes and sub-themes for colloquium were selected

2. HR Study Committee(SC)

Executive & General

24-28 Sept., 2006 Lome

Preparatory meeting of HR Exec Committee members (24/9/06)

Review & Development of plans & objectives

Theme and sub-themes for Colloquium customized

Milestones for Colloquium activities scheduled

Draft Brochure etc for Call for Papers prepared

Planning Committee for HR Colloquium identified

Theme & sub-themes for regular HR activities adopted

3. Scientific Committee

24-26 October, 2006 Luanda

Consolidate planning of Lome discussions & its outcomes

Outcomes of the Lome meeting were finalized

A Paper Presentation on “Improving Power Utility Performance through Staff Motivation” was given by the HR SC Coordinator

4. Various (ECG/HR SC/UPDEA)

November 2006 to August 2007

Planning & preparatory activities towards Colloquium by:

(a) HR Planning Com.

(b) ECG Planning Committee

(c) UPDEA

Establishment of ECG Coll. Planning Committee (with 6 sub-committees)

Call for Synopsis/Papers, translation & review

Selection of final Papers by HR Planning Committee

Various preparatory meetings (ECG/HR SC/ UPDEA)

5. Scientific Committee

3-5 April, 2007, Abidjan

Provide a Sub-Theme for the 16th

UPDEA Congress.Consolidate Arrange-ments for

Same Theme as selected for Colloquium was retained

Pre-Colloquium evaluation meeting by HR SC and finalization of Plans

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Colloquium.

Sensitize HR members on personal health improvement issues

A Paper Presentation on Stress Management was made to HR members by the HR Coordinator

HR Colloquium

7-9 August 2007, Accra

Improve the quality of HR services by ensuring the practice of Good Corporate Governance

Colloquium implemented successfully

13 Papers presented on 5 sub- themes

Over 120 delegates attended from more than 15 Utility companies, and from more than 10 countries

6.2HR Planning Committee for Colloquium

The following HR Planning Committee was put in place:HR Study Committee Coordinator -- Chairperson : Mrs Efua Garbrah-Sarfo Deputy Coordinator -- : Mr Abi Kao 1st Rapporteur -- : Ms Mary Gachuhi 2nd Rapporteur -- : Mr Adeniye SalaouHost Utility - ECG Rep -- : Mr Robert Sarpong Advisor Role -- : Mr Antoine Kouassi

6.3 Objectives of the Colloquium The Colloquium, which commenced on 7th to 9th August, under the auspices of UPDEA and hosted by ECG, provided a forum for discussions and exchange of ideas among HR Management Practitioners and other Stakeholders on modern trends in HR its relationship with Good Corporate Governance.

In selecting the theme and sub-themes for the Colloquium, members expressed the desire to ensure that the HR function is seen henceforth as a business partner by their technical counterparts, with each group aiming at achieving the best for the organization. The aim of the committee is to show that HR can add value to corporate objectives and outcomes.

6.4Theme & Sub-Themes

The theme selected was: “Good Corporate Governance in Utility Companies: The Strategic Role of HR Management”. It had five Sub-themes as follows:

1. Ethics of Management and Sustainable Development: Challenges of the 21st

Century for the African Electricity Utilities.2. In Quest of Good Governance in Africa Power Utilities: Are the Management

Personnel – Managers or Leaders?3. The Role of Workers in the System of Good Corporate Governance.

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4. HR Practitioners as Strategic Business Partners in the Management of Power Utilities

5. Succession Planning: Is it a threat to Leadership?

In Kenya in February 2006, 3 themes and 16 sub-themes were retained as there was insufficient time to discuss them thoroughly and settle on the most appropriate ones. At subsequent meetings, however, the above shortlist was developed for implementation towards the colloquium.

A total of 13 Papers were presented on 5 sub-themes, attracting over 120 delegates from more than 15 Utility companies, and from more than 10 countries. The following recommendations were made by the end of the colloquium:

6.5Colloquium Recommendations

Sub-Theme 1: Ethics of Management and Sustainable Development: Challenges of the 21 st Century for the African Electricity Utilities .

Two Presentations were made under Sub-theme 1 with the following recommendations:

1. Organizations should lobby for autonomy in decision-making and reduction of Government control and interference.

2. Organizations should implement code of conduct3. Utilities should charge realistic tariffs and intensify revenue collection to

improve service hence cutting down on unethical services.4. There is the need to create an environment where employees are

encouraged to develop their moral autonomy.5. To encourage good ethics and governance, management should

encourage staff to express themselves freely, implement ethical training in our organizations and be willing to hear dissenting views

6. Communicate values and ethics of the company to all staff and to new staff as soon as they assume duty.

Sub-Theme 2: In Quest of Good Governance In Africa Power Utilities: Are the Management Personnel – Managers or Leaders?

The following recommendations were made by the only Presenter:1. HR needs to create Leaders through Sustainable and Structured Training and

Development.2. It is necessary that Utility Companies develop and integrate procedures;

policies and practices to recruit, maintain, develop and utilize employees as to enable the Companies meet the desired goals.

Sub-Theme 3: The Role of Workers in the System of Good Corporate Governance

Three Presentations were given under Sub-theme 3 with these recommendations:1. Regular consultation and meetings between Unions and Management should

be held.2. Unions should not be considered to be antagonizing Management.

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3. Workers should have a channel of communication to participate in policy formulation and give proposals on issues that affect them directly or indirectly.

4. HR should be more proactive and position themselves to effectively enhance Good Corporate Governance.

5. There is the need to attend to the needs of employees to maintain a high morale among them

6. Every employee in an organization must have a sense of belonging to a group.

Sub-Theme 4: HR Practitioners as Strategic Business Partners in the Management of Power Utilities.

The following recommendations came out of the six Presentations made under Sub-Theme 4:

1. Employees should know the work culture in their organizations and operate within same.

2. There is the need for HR staff to train to become Strategic HR Practitioners because not all the HR people have all the needed competencies to become professional HR people.

3. There is the need to educate non-HR Line Managers, relate with them tactfully to flow with HR Managers.

4. Creating & leading change5. Maintaining a business focus6. Promoting Individual respect, their cultures and social norms.7. Transparency in management of HR activities.8. Encouraging innovation and allowing for mistakes.9. Internal recruitment before recruitment from outside.10.Evaluation of staff.11.Payment of bonuses based on performance

Sub-Theme 5: Succession Planning: Is it a threat to Leadership?

One Presentation was made under Sub-theme 5 with these recommendations: 1. HR needs to create Leaders through Sustainable and Structured Training and

Development.2. Have mentors especially for new personnel joining the company

6.6Additional Recommendations/ Sub-Themes

Ahead of the holding of the colloquium, some members had expressed the wish for two additional topics to be treated: i.e.: - Capacity Building/ Training and Gender Role in HR Management. It was agreed that these could be treated at a latter date since the Gabon HR Colloquium of 2004 had covered the said topics.

6.7Post Colloquium Activities

Field trips were made to the Kakum National Park in Cape Coast and the Akosombo Dam. About 33 delegates went to Kakum National Park while 28 visited the Akosombo Dam and Township. Overall, the colloquium was very successful. HR

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delegates now need to transfer what they have learnt unto the job so as to be accepted as collaborators rather than corporate fund dissipaters.

7. OUTSTANDING ACTIVITIES

The Committee was unable to formally deal with the 2nd HR Theme selected and its sub-themes. Since it had been decided earlier however that each member of the study committee takes on those other sub-themes within their own organizations, it is the hope of the HR leadership that efforts are being made to translate some of these additional sub-themes into concrete strategies at the work front.

The retained 2nd Theme and sub-theme are as follows:

Strategic HR Management: the Backbone to Good Corporate Governance while nine areas of interest have also been identified for development as sub-themes by members. These are:

1. Privatization of African Electrical Utilities: Implication of Human Resources2. Human Capital Development In Electrical Utilities in Africa: Benefits derived

from cross-exchange programmes3. Post Medication and integration of victims of HIV AIDS in the workplace.4. Stress and Stress Management in the work place.5. Ethical Issues in Human Resource Management.6. Skills management: An Evolution of career in a competitive environment.7. Management of employee communication in Power Utilities8. Human Resource Capacity Building: Basic Requirement for Good Corporate

Governance9. Succession Planning. Myth or reality?

8. CHALLENGES

8.1 MembershipThe main challenge encountered during the period under review was the constancy with which the membership of the HR Committee changed at each Scientific & HR committee meeting. This situation often created the need to go back and update new comers on projected activities and those undertaken already, thus loosing a lot of aggregate hours. This partially contributed to the Committee’s inability to tackle the second set of theme and its sub-themes in plenary.

The committee also had to often grapple with the absences of its 1st and 2nd Rapporteurs at official meetings leading to challenges in getting Minutes and Reports compiled in a timely and professional manner. It must be mentioned though that the CEB (Togo/Benin) often arranged for a stand-in for the 2nd Rapporteur whenever the initial Officer was unavailable. It was observed that most committees faced similar difficulties of the repeated absences of some of their executive members. A solution must be found for this.

8.2 CommunicationVarious challenges were encountered in the area of communication. It is recommended that improvements be found for communication methods used among

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Study Committee Executives, SC Executives and their members, between SC Executives and the UPDEA secretariat/Executives etc. The issue of documents such as Reports and Minutes at SC meetings being in only one of the official languages used by UPDEA must also be tackled for greater results of the outcomes of the activities of the various Study Committees.

9. PROJECTIONS

Members agreed that at its next meeting in Kenya (during the 2008 Congress), it would discuss which of the following areas should be tackled in the next three years, and would then draw up its programme for the HR Study Committee:

1) Privatization of African Electrical Utilities: Implication of Human Resources2) Human Capital Development In Electrical Utilities in Africa: Benefits derived

from cross-exchange programmes3) Post Medication and integration of victims of HIV AIDS in the workplace.4) Stress and Stress Management in the work place.5) Ethical Issues in Human Resource Management.6) Skills management: An Evolution of career in a competitive environment.7) Management of employee communication in Power Utilities8) Human Resource Capacity Building: Basic Requirement for Good Corporate

Governance9) Succession Planning. Myth or reality? 10)Capacity Building/ Training11)Gender Role in HR12)Developing an HR Database to enhance staff placement 13)Encourage exchange of information among utility companies 14)Enhancing internal communication for improved productivity 15)Information management for UPDEA members/officers 16) Performance Management

10. CONCLUSION

On the whole the past 3 years have been very exciting and beneficial. Both old and new members showed commitment to group work and shared their expertise and rich experiences with the rest. We are trusting that greater heights will be conquered in the coming years and that our other professional colleagues in the various disciplines would extend a warmer hand to HR Practitioners and support the latter to give them of their very best.

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GENERAL REPORT OF THE 16th CONGRESS OF UPDEA

On June 10, 2005 in Accra, the 15 th Congress of UPDEA selected the following topic for the 16th Congress: “Good Governance in national electricity sector Key factor for achieving access to electricity for all African people.”

For this 16th Congress held in Nairobi from 24 to 26 June, 2008, several papers were collected and reviewed by the Scientific Committee in order to propose a program tantamount to the stakes of the selected topic. The participants were given the opportunities to debate on 25 (twenty five) papers presented by the authors.Besides, for three years, the study committees have endeavoured, in as much as possible, to carry out their assignments.This Congress was therefore an opportunity, on the one hand, to continue sharing our experiences during the debates on the general topic and to take stock of the Study Committees activities over the past three years. The items mentioned below are a summary of the debates.

1. OPENING CEREMONY

The opening ceremony was chaired by his Excellency Mwai KIBAKI, President of the Republic of Kenya. It started with a prayer to God Almighty, creator of the universe so that he may impart our leaders and the delegates at the Congress, with the wisdom to maintain peace and security in our countries and amongst our people and protect them wherever they go.

Talking the floor as the first speaker, Mr Abel Didier Tella, Secretary General of UPDEA thanked President KIBAKI who, through his attendance, has demonstrated a keen interest in the activities of UPDEA. Then, he introduced the heads of delegations attending the Congress.On the whole, over 250 delegates including:

o 32 active members from 24 african countrieso 5 african power poolso 19 international organizationso 2 special guests.

The Secretary General then awarded Prizes to Herman Mutima Sakrini, former Secretary General of UPDEA and to Mr Joshua Kofo Ofedie, former President of UPDEA and former Chief Executive of VRA (Ghana), for their contribution to the development of UPDEA.

Following the Secretary General of UPDEA, Mr Owura K. SARFO, outgoing chairman of UPDEA and Chief Executive of VRA/Ghana, indicated that in Kenya, a land fraught with 20 million years of mankind’s history, UPDEA may be proud of what it has achieved since 1970. Indeed the Union began with only 6 members; today, it comprises 53 active members in 42 countries. As a promoter of development and a catalyst of access to electricity, the Union has contributed to:

o The establishment of some of the 5 power pools

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o Initiating the Idea to set up an African Rural Electrification Development Fund (FADER)

o The establishment of AFSEC inter alia.

Mr Owura K. SARFO indicated that the shortcomings of the electricity systems and the extent of poverty amongst the people in Africa require that we be more aggressive to turn our ideas into reliable programs with a view to enhancing accessibility to electricity. He then handed over the Union pennant to the new President and asked all the delegates to equally trust and support the incoming President in order to enable him to pursue the fascinating struggle for Africa’s development.

Mr Edward N’JOROGE, new President of UPDEA and Chief Executive of Ken Gen (Kenya) then took the floor and reminded the participants that since the 15 th

Congress held in Accra, Ghana, the imbalance between supply and demand has worsened.This is not mainly due to lack of found but rather to inappropriate leadership and bad governance. Mr N’JOROGE wished that our power be managed by deserving and efficient people with good managerial skills. In concluding his speech, he expressed his thanks to the team of the UPDEA general secretariat and the organizing committee of this Congress for getting successfully through a lot of work.

As for Mr Kiraitu MURUNGI, the Energy Minister of Kenya, he, first of all, wished welcome to the delegates and asked them to feel at home in Kenya. Addressing energy issues, the Minister indicated that, on the one hand demand has been increasing above 6% par annum over the past 6 years, while supply was stagnating. On the other hand, only good governance can correct the imbalance and particularly in sharing the risks between the private sector and the public sector. He concluded his statement by urging the delegates to make Africa not a continent doomed to failure but a continent of hope, through the solutions proposed.

Taking the floor at last for the formal opening of the Congress, His Excellency President Mwai KIBAKI, after wishing welcome to the delegates recalled that, to have more than 500 million Africans who have no access to electricity is unacceptable. He urged the Managers of power utilities to develop strategies to facilitate access to electricity at competitive prices while observing international standards. Before opening the 16th Congress formally, he suggested a set of ideas on the use of human expertise in power utilities, in accordance with good governance principles, in the areas of financing, restructuring and quality power supply.

As was pointed out above, our Congress included two major components:

Papers and debates on eight(8) sub themes A review of the study committees’ activities

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2 – SUMMARY OF PAPERS AND DEBATES

Good Governance and Benchmarking Financing and restructuring of african electricity sector Improving access to electricity Standardization and quality of power supply How can electrical equipment manufacturers contribute to improving access to

electricity in Africa? Why should African power utilities promote efficiency and good governance?

Which role could the African States play? Good governance in the public service utilities : the strategic role of human

resource management

2.1 – Good governance and benchmarking

This session was chaired by ESKOM (South Africa) and reported on by ZESCO (Zambia) and SNEL (DR Congo).

On the whole, three (3) presentations were submitted by ENERCA (Central Africa), VRA (Ghana) and KPLC (Kenya).

The presentations and ensuing debates yielded the following conclusions:

o Designing a code of Good governance is a necessity for our power utilities if they are concerned with managing their companies efficiently and safeguarding the interests of the stakeholders

o Adopting one of the two models of good governance, namely the equitable utilization model and the Carver model allows for sustainable and transparent management of electrical power supply in order to attract private capital

o Using non removable bolts to fix the iron corners is a solution to vandalism on high voltage power lines

2.2 – Financing and restructuring of the African electricity sector

This session was chaired by SONELGAZ (Algeria) and reported upon by STEG (Tunisia) and NAWEC (Gambia)Six(6) papers were presented by VRA(Ghana), SONELGAZ( Algeria), SENELEC( Senegal), Ken Gen( Kenya), ESKOM(South Africa), PHCN( Nigeria).

After the debates, the following observations were made:

o The need to restructure the power sector in Africa in order to improve its efficiency.

To that end, it will be necessary to put in place some regulation organs with a view to setting tariffs in consideration of operational costs

o Lack of political leaders’ will to undertake restructuring

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o Indications on the best way to proceed, namely

Design appropriate policies Fulfil one’s obligations Develop rules and regulations and enforce them Build institutional capacities Extend the autonomy of the Regulator Put in place transparent administrative measures

Some examples were given about successful restructuring such as the case of SONELGAZ whose good governance policy has enabled the utility to achieve its development program and to maintain a fairly high level of investment. The recent case of Ken Gen whose new law on energy offers many benefits, notably:

Many opportunities to the technicians of the electricity sub Sector Keen competition between the various electricity utilities to hire

technicians Power Availability and reliability encourage investment

o Restructuring difficulties of some utilities due to ailing financial status (unrecovered debts, inadequate tariffs, etc…)

o The compelling necessity to make significant investments in the next 10 years. To that end, there is a need for strategy planning and adequate management in the African electrical power utilities. It will be necessary to:

Provide regular maintenance of electricity infrastructures Allocate appropriate budgets to power utilities Provide quality staff training

o If restructuring is to be efficient, it has to take place within a specific time frame and not endlessly. It must be conducted by the power utilities and not by the government

o Risk management and investment attraction are part of the solutions to the energy problems of Africa. Therefore, new investments must be encouraged through incentives and the wrong opinion whereby benefits must be derived from customers tariffs must be done away with, because everywhere in the world, multiple subsidies are granted.

On the whole, regarding this topic, the following recommendations were suggested:

1. Apply good governance at all national and sectoral levels2. Show some credibility and financial transparency3. Define clearly the scope of responsibility of the various stakeholders in

the electrical power sector4. Apply generally at all levels the best practices in corporate governance

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5. Apply good governance in planning, developing, managing and maintenance of electricity structures, including interconnection structures

6. Enhance the role of the State in financing rural electrification to facilitate access of the populations to electricity.

2.3 – Rural electrification

This session was chaired by CEB (Benin) and reported on by VRA (Ghana) and NIGELEC (Niger).

Three (3) presentations were made by SENELEC (Senegal), PHCN (Nigeria), ONE (Morocco). After the presentations and debates, the following observations were made:

o The allocation of rural electrification concessions is closely related the issue of government resources allocation. When it is examined in terms of energy efficiency and good governance, it appears that these concessions are financially and economically more profitable when they are integrated into the concession scheme.

o Poor electrification rate is certainly related to various operation standards including, operation frequencies and voltages, equipment standards and modes of operation

o The harmonization of standards will certainly bring about greater availability of energy, better quality of service, more reliable facilities, a reduction in operational and maintenance expenditures and also the creation of income generating activities.

o Programmes involving partnership with the power utility, the State, the municipalities and the users seem to be an avenue to explore for the financing of power systems development.

2.4 – Improving access to electricity

This session was chaired by EAPP (Eastern Africa Power Pool) and it was reported on by NAMPOWER (Namibia) and CIE (Côte d’Ivoire).

Five papers were presented by SENELEC (Senegal) Ken Gen (Kenya), CIE (Côte d’Ivoire), FISUEL (Senegal), and ZESCO (Zambia).

After the presentations, the following proposals were made:

o Optimize customer management with a view to improving internal outputs. This can be achieved by putting in place a set of measures to improve the recovery rate, in order to increase the company’s turnover. Subcontracting or

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outsourcing some of the labour intensive duties to save time and money could be a solution.

o Emphasize energy efficiency and energy conservation, by selecting appropriate technologies, through sensitization campaigns on the rational use of energy and by liberalizing the electrical power sector. Training and information sharing are key factors.

o Launch a campaign based on the principle of co – financing involving all the local stake holders ( local governments, line ministries/supervising authority, concession holders), external partners ( ex: European Union), and peri – urban populations

o Promote organizations such as FISUEL whose mission deals, on the one hand, with improving energy efficiency and access to electricity; and on the other hand with security problems caused by fraudulent connections in poor districts. FISUEL is also in charge of resource mobilization to replace poor energy efficiency equipment and the development of power distribution systems fit for high risk zones, in terms of illegal connections.

o Take advantage of the huge hydro electric resources (INGA 40 .000 MW). To that end, it is imperative to :

Build transport infrastructures towards northern Africa, western and eastern Africa, using direct current transport technologies (HVDC) together with HVAC systems. Convince all the stakeholders involved to provide political and financial support to the project.

2.5 – Standardization and Quality of power supply

This session was chaired by ONE (Morocco) and the rapporteurs were PHCN (Nigeria) and SENELEC (Senegal).Three papers were presented by ERC (Kenya), ESKOM (South Africa).

The following conclusions evolved from the discussions:

o The role of the Energy Regulation Committee is to solve the equation of the close link between the issue of access to electricity which is a topical issue in most of the annual reports of the African States, and electricity supply and development

o In implementing regulation, the principle of minimum tariff in used in the economic area and it is necessary to have a code for the electricity system and a customers’ charter in the technical and commercial domains

o The Westcor Project (Western Power Corridor) involves the construction, on the INGA site, on the River Congo, in DRC, of the INGA 3 power plant with a capacity of 3500 MW and the installation of high voltage interconnection lines

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between DRC, Angola, Namibia, Botswana and South Africa. The project was initiated in 2004 by the power utilities of the 5 countries covered by the project. The feasibility studies have been completed and mobilization of funds is underway. Ideally, the works could commence in 2010 and be completed in 2015.

o Members utilities are kindly requested to fill the form designed to put in place a database similar to that of the C1.9 working group established by the CIGRE(International Conference on Large Electrical Systems). Such a data base will facilitate the sharing of information and create business opportunities between the utilities. The questionnaire covers the following fields:

1. Structure of the utilities 2. Methodological approaches and projections of capacity and energy

demand3. Design and planning criteria 4. Planning approaches and methods5. Technical specifications6. Funding needs7. Human resource needs8. Exhibitors Forum

2.6 – Exhibitors’ Forum

This session was chaired by VRA (Ghana) and the rapporteurs were ECG (Ghana) and SBEE (Benin).

The topic of this session was: “How can the electrical equipment manufacturers contribute to increasing access to electricity in Africa?”.Eight papers were submitted amongst which a short presentation from AFSEC and its organs was made by Mr Paul JOHNSON, the Executive Secretary of AFSEC.

Thereafter, the exhibitors made some presentations on their goods and services. The companies included notably: PIESA, AGGREKO, UK, ZESCO, SERGI, NEXANS FRANCE, OMNICO, and VALMONT. At this stage, we wish to thank the various exhibitors who gave us an overview of the technological progress in the areas of electrification and electricity sector development.

2.7 – Round table: Why should African electricity utilities promote efficiency and good governance?

This session was held as a round table session. The moderator was the Permanent Secretary of the Kenyan Ministry of Energy. After the introduction by the Moderator, five(5) papers were presented by :

Mr Kouagou M’po Cyr (WAPP – PIPES), former CEo of CEB (Benin-Togo) Mr Thulani Gcabashe, (Exec. Chairman-Built Africa H.), former Chairman of ESKOM, Mr Don Priestman, CEo of KPLC, Mr Sisala Rhodnie, CEo ZESCO Dr Hussein Elhag, Chief Executive of AFREC, Representing AUC (Infrastructures

& Energy Commissioner)From the debates, the following conclusions were derived:

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o In order to be successful, good governance must observe four (4) criteria:

1. The company must be accountable to the public authority in terms of achieving the pre – established goals.

2. Transparency must prevail whereby the public authority is entitled to permanently monitor the management of the company

3. The need to use the best practices in order to ensure overall efficiency

4. The strict observance of investment programmes approved in advance by the public authority.

o The difficulties of our power utilities are easy to understand when examined in the context of operational efficiency and good governance. Without any good practices in the areas mentioned above, our companies will not survive and notably attract funds. Therefore, good governance must abide by the following requirements:

A clear mandate of the companies management that must be revised periodically

A structure of capital compatible with operational constraints Transparent regulation that is understood properly by all stakeholders

particularly the users.

The functioning of the company must be adapted to the constraints of its socio – economic environment

o In addition to the above mentioned conditions and requirements, and in order to implement good governance, the following provisions must be taken into account:

With regard to regulation and tariffs, separation of accounts must be applied for all the functions of the company and the costs / tariffs ratio must be equitable in order to guarantee the companies reliability

Segmentation of the power sector should not be started without putting in place some institutional reforms.

Legislation must guarantee transparency, coordination and above all, the planning of needs in relation to the set goals.

Government - negotiated interest rates must be reasonable.

oPrivatization and deregulation are not a cure – all. A thorough review of the privatization and deregulation process, demonstrates that governments should engage into such processes only after en exhaustive diagnosis of their particular situation. Such diagnosis should , inter alia, deal with the following:

Tariffs must reflect operational costs Autonomy in decision making

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Separation of the Board of Directors role from the role of the Management

Organizational efficiency Selection of the best skills and talents Proper planning of investments and investment implementation in

line with established time frame Efficiency in the marketing of products

As a conclusion to this theme, the following recommendations are addressed insistently to States leaders, utilities and populations:

To the governments :

To put some order into politics in Africa, our common land Set a target date for the goals to be achieved, why not 2030? Prepare a budget with clear priorities Consider the INGA development project as the African Power House

To the utilities :

Generate profits and become financially viable

To rural populations:

Enable the municipalities to control their own destiny Africanise best international practices in cost reduction by using low cost aids and local manpower and by standardizing the equipment

2.8 – Good governance in public service utilities: the strategic role of human resources Management

This session was chaired by Ken Gen (Kenya) and the rapporteurs were KPLC (Kenya) and SNE (Congo)

Two papers were presented by Ken Gen (Kenya) and VRA (Ghana).

The debates following the presentations have highlighted the strategic role of human resources management for the promotion of good governance in the utilities. Hence the following suggestions:

o The use of some tools to establish performance ratio for timely decision – making

o Implementation of weekly charts o Putting in place the performance management tools as a basis for major

changes o Implement a staff training policy to impart to the staff appropriate managerial

skillso The establishment of medical units to enable the utilities to fulfil their social

obligations

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o Enhance the contribution of the supervisory staff which shall be bound to practice accountability, transparency and ability to anticipate.

o Ability to be a strategic partner within the utilityo Decentralization of the HR function in local offices.o Promotion of team work within the company o Balance the often divergent interests of the staff with the interest of the utilities

o Adjust the labour code to the constraints of modern living standards. To that end, some measures have to be taken into account, notably: Compulsory annual leave Parental holidays for births Pandemics and more specifically the intrusion of HIV in the professional

environment

3 – REVIEW OF STUDY COMMITTEES ACTIVITIES

This session was chaired by Ken Gen (Kenya) and the rapporteurs were KPLC (Kenya) and SNE (Congo).

On the whole, all study Committees were able to fulfil their assignments for 2005 – 2008, despite some difficulties due to irregular attendance of a few Study Committees members.The reports submitted were very enlightening and suggested many recommendations that deserve to be taken into account (See Studies Committees Report). The following recommendations were made after the debates:

o The need for the General Secretariat to:

Update the UPDEA data Bank To serve as a relay to disseminate the outcome of the study Committees’

and Scientific Committee’s proceedings.

Following the reading of the activities reports, participation diplomas were awarded to the members of the various Study Committees bureaux in recognition of their active participation in the Committees proceedings.

In anticipation of the establishment of the Scientific Committee for 2008 – 2011 candidates application forms for the various positions were circulated to the heads of delegations.

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4 – CLOSING CEREMONY

The closing ceremony took place on June 26, 2008 at Safari Park Hotel in Nairobi, Kenya. It was chaired by his Excellency Kalonzo MUSYOKA, Vice President of the Republic of Kenya.

It started with the presentation of the general report by the General Rapporteur, Mr Isidore Priso KOTTO and of five resolutions issued by the General Assembly held on 23 June, 2008 a day before the Congress. These resolutions dealt mainly with:

o The appointment of the new members of UPDEA’s Steering Committee for 2008- 2011

o The program of activities of UPDEA for 2008- 2011o Venue and theme of the 17th Congress of UPDEA. It has been decided that

the next UPDEA Congress will held in Tunis, in June 2011, and the theme will be “ Development of the African energy potential and integration of electricity systems for the sustainable development of african countries “. The Congress will be hosted by STEG.

o Date and venue of the next UPDEA General Assembly. It was decided that the next General Assembly of UPDEA (41st) will take place in Abuja, Nigeria, in November 2008. It will hosted by PHCN

The General secretariat of UPDEA is in charge of finalizing the dates of these various meetings in conjunction with the host utilities.

The Secretary General of UPDEA then read 3 votes of thanks including a special vote of thanks to President Mwai KIBAKI for attending personally the opening ceremony of the 16th UPDEA Congress.

After the Secretary General, the new President of the UPDEA Mr NJOROGE, in his statement, addressed first and foremost, congratulations to the participants for the hard work done over the three days of the Congress.

Then he referred once again to Africa’s difficulties in the area of electrification despite the huge energy potential available in Africa. As a possible avenue for solutions to take up the electrification challenge, he suggested, inter alia, good governance to attract local and foreign investors and to promote public - private partnership.

He congratulated the outgoing Secretary General and the outgoing president of UPDEA for their good performance during their terms of office. Last, he extended thanks to the sponsors and organizing committee of the Congress.

In his closing statement of the 16th Congress, his Excellency, Kolonzo MUSYOKA , Vice President of the Republic of Kenya pointed out the relevance of the Congress theme in view of the electrification problems confronting Africa. He then wished that the Congress has provided an opportunity to identify possible solutions.

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He also highlighted the fact that the appointment of Mr Njoroge, Chief executive of Ken Gen , as new President of UPDEA, was a great honour for Kenya.Before closing the 16th Congress of UPDEA formally he wished all the delegates a safe journey back to their respective countries.

The Rapporteur General

Nairobi- 26th June, 2008

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