Updea Scientific Committee Meeting

UPDEA SCIENTIFIC COMMITTEE MEETING

ABIDJAN, COTE D’IVOIRE, 2 - 5TH APRIL 2007

STUDY COMMITTEE ON FINANCING AND RESTRUCTURING OF THE POWER SECTOR

MEMBERS PRESENT:

1)  TANOE BILE SOGEPE COTE D’IVOIRE (Co-ordinator)

2)  MABOE MAPHAKA ESKOM SOUTH AFRICA (Vice Co-ordinator)

3)  MARTINA ADDO VRA GHANA (Rapporteur)

4)  ELIZABETH NJENGA KENGEN KENYA (Vice Rapporteur)

5)  GABRIEL SIBIDE SOGEPE COTE D’IVOIRE

6)  WILLIAM KYEREMATENG ECG GHANA

7)  ALICE MOREIRA ENE ANGOLA

8)  KAKOU DOMINIQUE CIE COTE D’IVOIRE

9)  OLIVIA BONNEY ECG GHANA

AGENDA:

1.  Mandate/ background

2.  Sub-theme for the 2008 UPDEA Congress

3.  Working groups

4.  Themes and Work Programme of the Study Committee

1. MANDATE/ BACKGROUND

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 in the power sector since the 90s, and concurrently, it has to play its traditional role of initiator of the Union activities in terms of facilitating 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 means, methods and the appropriate avenues for management, financing and development of the power sector in Africa.

2.  SUB-THEME FOR THE 2008 UPDEA CONGRESS

Good governance, credible credit rating and successful restructuring as a means of ensuring access to financing for African power projects.

3.  WORKING GROUPS

The two existing Working Groups of the Committee were confirmed with the following members:

Members:

4. THEMESAND WORK PROGRAMS

4.1 RESTRUCTURING WORKING GROUP

The mission of the Study Committee with regard to this section is to follow up and assess the restructuring of the power sector in Africa. This topic remains a permanent issue.

a. Activity 1: Survey of restructuring experiences of the power sector in Africa.

Objective: To gather information on experiences of restructuring and provide inputs for the workshop.

Status of Implementation

The Study Committee, through the UPDEA Secretariat, circulated a questionnaire to member utilities to gather information on restructuring experience. As at the time of the meeting, 7 utilities had submitted responses to the questionnaire. They are: SBEE, CIE, KENGEN, VRA, ECG, NEC, LEC (Liberia). Responses are still being expected from other utilities.

Presentations were made on restructuring experiences during the Luanda Scientific Committee Meeting during 23th - 25th October 2006 based on extracts of the questionnaire that had been circulated. Another interim report as presented to the Executive Committee meeting in November 2006 in Cairo.

Continuing Activities

·  Remind all utilities that have not yet submitted responses to the questionnaire on restructuring to do so during the current Scientific Committee meeting.

·  Utilities are to submit the completed questionnaire by e-mail to the Coordinator and copied to the UPDEA secretary General

·  A Working Group (Coordinator, VRA, ECG, SOGEPE, and CIE) will analyse the responses to the questionnaire and use information from the questionnaire to enrich the interim report.

b. Activity 2 : Organising a Workshop on Restructuring

Theme of Workshop: “Power sector restructuring experiences and response to future challenges”.

Objectives:

·  To enable participants share experiences in restructuring utilities.

·  Benchmarking good governance practices into restructuring utilities.

Status of Implementation

The structure of the planned Workshop has changed. Only Study Committee members will meet in Morocco to finalise the report received from utilities.

Work Program

4.2 FINANCING OF POWER PROJECTS WORKING GROUP

For 2005–2008 period, the Committee, will pursue its reflections on financing of cross border projects, based on the report of the meeting of Kinshasa and the Tunisia Meeting on FADER, meeting of Lusaka in July 2006.

a Activity 1: 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 project have been identified in the past, especially, at the Kinshasa meeting.

Output: Report of analysis of the answers to be used to set up an action plan to tackle the bottle-necks.

Work Program

b. Activity 2: Development of Guidelines for Evaluating lenders’ proposals and Negotiation of financing packages.

Objective: Develop guidelines for evaluating lenders’ proposals and negotiation of financing packages.

Output: Guideline document

Work Program

2