Featured USAID Sector Reform and Utility Commercialization Projects

USAID works to help developing country partners upgrade their electricity sectors and transform their electric utilities into effective, financially healthy companies that provide reliable power to citizens. The following projects illustrate how USAID is promoting smarter utilities around the world. Click on the links below to learn more about each project.

   

Pakistan: Power Distribution Program: Improving distribution company operational performance

USAID assisted the Pakistani Ministry of Water and Power to develop a National Power Plan. Specifically, USAID worked with electric utilities to reduce unscheduled load shedding by introducing the use of modern technologies for tracking near real time power production levels in power distribution companies (DISCOs) and Pakistan’s National Electrical Power Regulatory Authority (NEPRA). USAID also engaged DISCOs in technology system upgrades, health and safety training, and business process and workplace advisory assistance. This helped the nine public sector DISCOs increase their revenues by $39.5 million between September 2010 and March 2015 through reduced electricity losses and improved revenue collection.

Haiti: Caracol Industrial Park: Expanding access to customers who previously lacked power in Northern Haiti

The Caracol Industrial Park (CIP) in the North of Haiti was developed to create a center of economic development outside of Port-au-Prince. USAID funded the construction of a 10MW HFO/diesel power plant and corresponding distribution infrastructure that provides uninterrupted electricity to the tenants of the CIP and surrounding communes.  Expansion of electricity service to customers in areas surrounding the CIP is being implemented through the Pilot Project for Sustainable Electricity Distribution (PPSELD), which is also reviewing the operational and financial position of the CIP utility and developing recommendations for achieving cost recovery and long-term sustainable commercialization. The CIP utility is now providing electricity to over 7,250 households, and plans are underway to develop a public-private partnership for sustainable management of the Caracol Power Utility.

Kosovo: KEDS - Incentivizing the private sector to help reduce losses

USAID worked with the Kosovo Energy Corporation (KEK) to enhance networks and reliability, improve energy sector governance, normalize environmental assessments, and privatize its distribution assets. The program resulted in operational improvements and efficiencies, which enhanced the reliability of electricity in Kosovo. Beneficial impacts of this project include: the successful, transparent privatization of KEK’s distribution services into an independent company - Kosovo Electricity Distribution Services, J.S.C. (KEDS), and the establishment of the Energy Regulatory Office (ERO) and the Kosovo Electricity Transmission, System and Market Operator (KOSTT) as self-sufficient and sustainable oversight bodies. Also, increased collection rates of billed energy have improved cash flow and lowered the subsidy burden for the Government of Kosovo. Overall, the program has had a positive impact on the energy sector by building the capacity of the Government of Kosovo to prepare for further commercialization of the power sector.

Afghanistan : KESIP and PTEC – commercializing Kabul’s utility to improve electricity access and reliability for its citizens

Afghanistan’s national power utility, Da Afghanistan Breshna Sherkat (DABS) was incorporated in May 2008.  Shortly after, in 2009, USAID began working with DABS, through the Kabul Electricity Service Improvement Project (KESIP) to support commercialization of the new utility. As the result of USAID’s efforts to improve metering, billing, and collections over the span of the project, DABS increased revenue collections by well over 50 percent and reduced power losses from over 50 percent to approximately 35 percent.  USAID continues support of DABS through the Power Transmission Expansion and Connectivity (PTEC) Program. A top priority under PTEC is widening the national power grid by extending Afghanistan’s North East Power System (NEPS) from Kabul to the Southern Electric Power System (SEPS) in Helmand and Kandahar. To this end, USAID is funding the construction of a 490 km transmission line connecting the NEPS network to the SEPS network. Once completed, the transmission line will be capable of providing sustainable power to 1.1 million underserved and unconnected Afghans in Kandahar and the major population centers along the Highway 1 economic corridor. Equally important are the commercialization and capacity building activities under PTEC, intended to improve sustainability of the infrastructure investments, increase revenue collection, and reduce losses. USAID is funding four on-budget commercialization contracts focusing on distribution, generation and transmission, Corporate Management Support (CMS), and asset valuation.  Finally, DABS implemented the Microsoft Great Plains Enterprise Resource Planning® (ERP) utility management software with the objective of automating DABS business functions, improving productivity and service delivery and increasing revenue generation.