EDM EMU Handbook A: Electrification Planning and Execution2020/08/11 · SAEP started with a gap...

DISCLAIMER

This is made possible by the support of the American People through the United States Agency for International

Development (USAID). The contents of this are the sole responsibility of Deloitte Consulting LLP and do not

necessarily reflect the views of USAID or the United States Government. This report was prepared under Contract

Number AID-674-C-17-00002.

EDM EMU Handbook A:

Electrification Planning and Execution Southern Africa Energy Program (SAEP)

Published August 11, 2020

USAID Southern Africa Energy Program (SAEP) EDM EMU Handbook A: Electrification | ii

Acronyms, Abbreviations and Special

Terminology Below tabulated is the list of acronyms, abbreviations and special terminology used in this document.

Term Definition

AfDB African Development Bank

CA (or Board) Board of Directors (in Portuguese, “Conselho de Administração”)

CAPEX Capital expenditures

CMS Customer Management System

CEO Chief Executive Officer

DAL Direcção de Aprovisionamentos e Logística (Procurement and Logistics Directorate)

Delegation EDM organizational structure responsible for commercial and technical operations at local level. One

Delegation exists for each Province

DES Direcção de Energia Social (EDM central management unit)

DGC Direcção Geral Comercial (General Commercial Directorate)

DGD Direcção Geral de Distribuição (General Distribution Directorate)

DM Demand Management

DPFO Dir. Planeamento Financeiro e Orçamento (Financial Planning and Budget Directorate)

DPSE EDM central System Planning and Engineering Department

EDM Electricidade de Moçambique E.P.

EEM Electrification Execution Management

EMU Electrification Management Unit

EMU Assistance SAEP Technical Assistance to establish an Electrification Management Unit

EP Electrification Planning

EPC Engineering, Procurement and Construction

EPM Electrification Portfolio Management

“Extensification” Extending of the distribution network to reach uncovered areas

FUNAE Fundo de Energia (Energy Fund)

FPE Ferramentas de Planeamento e Engenharia (Planning and Engineering Tools)

GFO Gestão Financeira e Orçamental de Projectos (GFO) (En. Financial and Budget Management for

Projects)

GIS Geographic Information System Mapping Technology

GoM Government of Mozambique

GOPL EMU Operations, Procurement and Logistics Manager

GPE EMU Planning and Engineering Manager

GPPR EMU Projects Portfolio and Results Manager

HVAC High Voltage Alternating Current

IDA International Development Association

KPIs Key Performance Indicators

LV Low Voltage

MDTF Multi Donors Trust Fund

MEF Ministry of Economy and Finance

USAID Southern Africa Energy Program (SAEP) EDM EMU Handbook A: Electrification | iii

Term Definition

MIREME Ministry of Mineral Resources and Energy

MozLiga Refers to EDM team responsible for the implementation of the ProEnergia WBG Project

NES National Electrification Strategy

Non-OSA Non-Obligation of Supply Area

OPEX Operational expenditures

OSA Obligation of Supply Area

PAO EDM Plano de Actividades e Orçamento (EDM Budgeting and Activities Plan)

PIU Project Implementation Unit

ProEnergia WBG Assistance to EDM, called Mozambique “Energia Para Todos” (ProEnergia)

Project Consulting work agreed with to execute the EMU Assistance

SAEP Southern African Energy Program

SHS Solar home system

SoW Scope of Work

STEC Sector Técnico (technical sectors within Delegations organizational structures)

USAID United States Agency for International Development

WB or WBG World Bank Group

USAID Southern Africa Energy Program (SAEP) EDM EMU Handbook A: Electrification | iv

Table of Contents ACRONYMS, ABBREVIATIONS AND SPECIAL TERMINOLOGY II

TABLE OF CONTENTS IV

LIST OF TABLES AND FIGURES V

1. INTRODUCTION 1

Project Background 1

SAEP’s Support to EDM EMU 1

Purpose of EMU Handbooks 2

Purpose of EMU Handbook A – Electrification Planning and Execution 2

“Energia Para Todos” Program and Electrification Strategy 2

Approved Electrification Strategy Overview 4

Electrification Access Projections 5

Challenges and Opportunities for EDM 5

Establishing an Electrification Operating Model Centrally Coordinated by an EMU 6

2. OPERATING MODEL FOR ELECTRIFICATION 7

Model of Electrification Governance 8

Organizational and Management Systems 12

Monitoring, Evaluation and Reporting Model 18

I. Structured Information Management Elements 18

II. Internal Control Routines and Risk Management 26

III. Electrification Management Meetings 36

3. ELECTRIFICATION ARCHITECTURE OVERVIEW 39

Electrification Processes (Planning and Execution) 41

4. ELECTRIFICATION PLANNING AND EXECUTION 43

4.1 Forecast Planning of Electrification (PR-P&E.1) 43

4.2 Electrical System Availability Analysis (PR-P&E.2) 45

4.3 Revision of the Forecast Electrification Plan (PR-P&E.3) 47

4.4 Prioritization and Scheduling of Electrification Projects and Resources (PR-P&E.4) 49

4.5 Management of Electrification Projects and Connections Auditing (PR-EXE.1) 53

4.6 Monitoring of Delegation Electrification Activities (PR-EXE.2) 55

4.7 Promotion of Connections and Community Relations (PR-EXE.3) 57

5. ANNEXES 59

Annex 1: Processes and Tools Expanded 59

Annex 2: Process Flowcharts 92

Annex 3: Details of the World Bank “ProEnergia” Project 99

USAID Southern Africa Energy Program (SAEP) EDM EMU Handbook A: Electrification | v

List of Tables and Figures Table 1. Authority Matrix (Inclusive of approval flow for electrification process elements) 10

Table 2 Stakeholder Management Plan 11

Table 3 Event Action Plan 11

Table 4 Responsibilities for electrification processes (highlighted rows included in this handbook) 41

Table 5. Description of the ProEnergia Project components Error! Bookmark not defined.

Table 6. ProEnergia Project budgeted financing for each component Error! Bookmark not defined.

Table 7. Description of some relevant ProEnergia Project requirements by the WBGError! Bookmark not

defined.

Table 8. Execution status of the ProEnergia Project Activities Error! Bookmark not defined.

Figure 1. Electrification context in Mozambique, energy access rate (2019) 3

Figure 2. Densification area 3

Figure 3. Extension area 3

Figure 4. Scheme of Mandatory and Non-Mandatory Service Areas 4

Figure 5. Decision levels in the Electrification Governance Model 8

Figure 6. EMU Positioning in EDM Organizational Structure 14

Figure 7. EMU Unit Structure 15

Figure 8. Proposed EMU Structure 17

Figure 9. Overview of the Monitoring, Evaluation and Reporting Model Structure 18

Figure 10. Database model of priority areas to be electrified in Delegations (forecast) 19

Figure 11. Priority projects database model to be feasible and executed (Project pipeline) 20

Figure 12. Database model of electrification projects under execution (Project Portfolio) 21

Figure 13 Corporate Risk Management 29

Figure 14 Proposed organization of the CA 29

Figure 15 Example Risk Register Template 34

Figure 16 Probability Rating Table 35

Figure 17 Treatment Planning Form 35

Figure 18. Architecture of electrification-related processes (designed by SAEP and EDM teams) 40

Figure 19. Implementation framework of Component A works Error! Bookmark not defined.

Figure 20. Mozambique electric system and mapping of potential investment areas for electrification 105

USAID Southern Africa Energy Program (SAEP) EDM EMU Handbook A: Electrification | 1

1. INTRODUCTION

Project Background

The Electricity of Mozambique EP (EDM), a state-owned company and Mozambique electric utility, has requested

assistance from the Southern Africa Energy Program (SAEP) of the United States Agency for International

Development (USAID), and an Initiative of Power Africa to support the implementation of the National Electrification

Strategy through the establishment of a Management Unit, more specifically referred to hereafter as the

“Electrification Management Unit” (EMU) Project.

This project aims to complement the electrification program that EDM is undertaking with the World Bank Group

and other development partners, called the “Mozambique ‘Energia para Todos’ (ProEnergia) Project”, which will

support EDM in achieving its electrification plans by providing financing for equipment and materials and technical

assistance to improve EDM's operational capabilities in areas such as engineering, installation services, storage, design

and work supervision.

SAEP is working with EDM to provide technical assistance in establishing an Electrification Management Unit (“EMU”

or “EMU Assistance”), which will enable EDM to implement its electrification targets of 300,000 to 500,000

connections per year as set by the National Electrification Strategy (NES), aiming for EDM’s goal of 100% energy

access by 2030.

SAEP’s Support to EDM EMU

The overall objective of SAEP’s support to EDM is the assessment, development, operationalization, financing, and

procurement of the EMU. The EMU’s purpose is to ensure that the overall electrification program is well managed,

planned and implemented with cost efficiency and sustainability. To achieve this, it is expected that EDM's EMU, after

completion of SAEP assistance, will be able to:

• Address the lack of all-embracing and coordinated planning for electrification projects

• Professionalize its program management capabilities, which will be EDM's largest program involving

numerous stakeholders and large amounts of funds to manage over several years

• Implement effective controls and tools for planning / management and ensure effective tracking, monitoring

and reporting solutions.

To achieve these objectives, SAEP assistance to EDM EMU follows this task outline:

• Task 1: Assessment of the current electrification management capabilities and develop a proposed structure

for EMU

• Task 2: Formulation and process design for EMU

• Task 3: Operationalization of EMU

• Task 4: Auditing to the quality of implementation / sustainability

SAEP started with a gap assessment of EDM electrification management and operational capabilities during Task 1,

presented in an Inception Report, which also included the pre-design and requirements to set up an EMU at EDM.

The EDM Electrification Board Sponsor and the Electrification Director approved the Inception Report and validated

the EMU pre-design.


Purpose of EMU Handbooks

SAEP has developed a set of handbooks to guide the EMU as they develop. All three handbooks will be a useful

guideline for general management, in addition to specialist functional audiences.

EMU Handbook A for Electrification Planning and Execution

EMU Handbook B for Finance Planning and Execution

EMU Handbook C for Procurement Planning and Execution

Each handbook (A, B, C) contains the following sections, with section 4 and 5 varying across functional areas:

Section 1: Introduction (i.e. background, purpose, challenges)

Section 2: Operating Model for Electrification

Section 3: Architecture of Electrification

Section 4: Planning and Execution, specific to Handbook A: Electrification, B: Finance, C: Procurement

Section 5: Annexes specific to Handbook A: Electrification, B: Finance, C: Procurement

Purpose of EMU Handbook A – Electrification Planning and Execution

Handbook A presents the operational model proposed by SAEP team for the Electrification and operationalization

of EMU, resulting from the joint work done with the ProEnergia management team and stakeholders of the various

organizational areas with responsibilities for the execution of electrification processes. The SAEP team defined the

operating model for electrification considering the limitations of EDM's existing systems and tools, namely in the

areas of distribution system planning and finance. In the finance area, there is no system module for project budgeting,

control of investments and costs with electrification and its impact on EDM's accounts and its sustainability.

Accordingly, the SAEP team chose to develop customized excel-based tools to be introduced into the processes to

ensure the structuring of information that will allow the monitoring and evaluation of the electrification processes.

Another important aspect to note is that the monitoring and control of electrification at EDM will involve, on one

hand, the centrally structured electrification projects (in coordination with distribution and managed by DES) and,

on another hand, the electrification activities planned and executed by the Delegations, using their own budgets.

Consequently, the electrification planning and execution processes, as well as the EMU monitoring procedures, are

different for the electrification projects and the electrification activities run by the Delegations. In the operating

model described in this document, the SAEP team explains these differences and specific management requirements.

The annex of this Handbook A also contains specific information on electrification process:

• Annex 1: Processes and Tools Expanded (PR-P&E 1-4, and PR-EXE. 1-3)

• Annex 2: Process Flowcharts (full page) (PR-P&E 1-4, and PR-EXE. 1-3)

• Annex 3: Details of the World Bank “ProEnergia” project

“Energia Para Todos” Program and Electrification Strategy

Despite progress since Mozambique's independence in 1975, where the electrification rate was 3%, the Mozambique

national average electrification rate was still low at 28% in 2017. The figure below illustrates access to electricity in

Mozambique by region.


Figure 1. Electrification context in Mozambique, energy access rate (2019)

Source: EDM, 2018

EDM's current Board of Directors has revised the 2017 Strategic Plan and defined one of the 3 strategic objectives

“ensuring universal energy access for Mozambican citizens by 2030”. This objective has been validated and

incorporated into MIREME's Electricity sector plans. Given its critical contribution to the success of the Government

of Mozambique’s goal of promoting national poverty reduction, by mid-2019 the Government decided that the

objective of promoting access to energy would be subject to regular monitoring by the Council of Ministers.

Moreover, the President of the Republic of Mozambique launched a national program called “Energia para Todos”

which will be implemented under the National Electrification Strategy. The main objective of the program is to

increase access to electricity in the country to achieve universal access by 2030.

Energia para Todos provides a framework to accelerate universal access in Mozambique, focusing EDM on two main

initiatives to be implemented on-grid, from 150,000 connections to 400,000 new connections per year progressively,

and to achieve universal access by the end of 2030:

• Densification: consists of connecting all possible domestic customers located in an area served by the

Low Voltage (LV) distribution network (urban areas and district buildings).

• Extension of the national electricity grid: consists of the extension of the national electricity grid to

rural areas with relatively low population density and potential for productive energy use. For this extension,

an appropriate balance between on-grid and off-grid is required, considering the social aspects and political

priorities for the country's development.

Source: EDM, National Electrification Strategy

Figure 3. Extension area Figure 2. Densification area


The program also incorporates off-grid initiatives to be implemented, namely:

• Domestic solar systems (DSS, translated from Portuguese ‘SSD’): provide, based on each

household's demand, different models of DSS; This initiative is the lowest cost for rural areas where density

is very low.

• Mini-Grids: Provide centralized generation and implementation of a LV grid that must be powered by

Wind Energy, with the possibility of selling the residual energy through the National Electricity Grid. This

initiative will be implemented in high density rural areas such as villages, administrative posts, etc.

The program was launched by the President of the Government of Mozambique to demonstrate the government's

level of commitment to achieving universal access by 2030. The program implementer will be the Electricity of

Mozambique EP (EDM) and the Energy Fund (FUNAE), in coordination with the Ministry of Mineral Resources and

Energy (MIREME) and the Ministry of Economy and Finance (MEF).

Approved Electrification Strategy Overview

After revising its Strategic Plan and objectives, EDM, as a national energy utility, took the lead role in implementing

the Government of Mozambique (GoM) efforts to expand access to electricity. In particular, EDM made ambitious

investment plans for the extension of the electricity grid and has committed itself to promoting and increasing the

levels of connections to achieve the GoM and EDM target of 100% electricity access by the population by 2030.

On 16 October 2018, the GoM approved the National Electrification Strategy to be implemented between 2018 and

2030. This document was approved as the tool to consider facilitating, aligning and coordinating all electrification

efforts and contains institutional, technical and financial guidance with a new approach to achieving universal access

by 2030.

The strategy introduces a new approach that defines two areas:

• Mandatory Service Zone (MSZ translated from Portuguese ‘OSA’): Considers the zone adjacent

to Low Voltage (LV) lines at up to 100 meters. Within this zone, EDM shall be required to connect to the

network any customer requesting services.

• Non-Mandatory Service Zone (Non-MSZ or Non-OSA): Considers the remaining non-OSA

territory. In this area, EDM has no obligation to respond to any potential customer connection requests,

and this investment will only be made if EDM has external funds or tariff revenues.

Figure 4. Scheme of Mandatory and Non-Mandatory Service Areas


The basis of the strategy are the three pillars that define all the necessary elements for the strategy implementation:

i) Financial, ii) Institutional and iii) Technical. Regarding the Financial Pillar, the main element is the creation of an

Electrification Account (EC) to fund projects within the Non-Mandatory Bidding Zone. This account must have the

following financial sources:

• Electricity Consumers: through a connection fee and an electrification cost (projected to become the largest

source of funding when the access rate is above 60-70%);

• IFIs (International Financing Investors) and other development partners: through soft loans and grants;


• The GoM through loans.

For MSZ/ OSAs, EDM, with the support of the Government, development partners and tariff revenues, will fund

new connections in these areas.

The Institutional Pillar defines the roles and responsibilities of each institution that may be involved in electrification,

including the Government of Mozambique, EDM, FUNAE and the sector regulator, ARENE. Another key element of

this pillar is the recommendation to establish and maintain a systematic planning process for expanding access to

electricity service, with well-defined short-term results.

Electrification Access Projections

Implementing a national electrification strategy will require an average of 373,000 new connections per year, with

4,540,000 new customers in total for universal access by 2030. The strategy recommends a progressive increase in

the number of new on-grid connections from 135,000 in 2018 to 300,000 in 2020, and 450,000 in 2025, moment

from which the number of new connections should become constant.

To achieve universal access, the number of EDM customers will increase fivefold, which will have significant impacts

and will require internal restructuring in terms of management, operations, logistics, technical support, systems, etc.,

in order to respond to customer volume 5 times higher than in the past.

The chart below shows projections for a base case scenario for new connections to Mandatory Offer Zones (OSA)

and Non-Mandatory Offer Zones (non-OSA):

Graph 1. Projections for a base scenario of new connections to OSAs and non-OSAs


70% of the population is expected to be connected to the grid while 30% will be connected to off-grid power

solutions. In order to meet the NES connection targets, it will require $ 540 million annually, and an estimated

investment of $ 6 billion by 2030.

Challenges and Opportunities for EDM

EDM has a strategic objective to promote access to energy for the entire population by 2030, and has developed a

National Electrification Strategy Plan that sets out the fundamental principles, prioritization criteria, technology

solutions, financial mechanisms and roadmap for Implementation. The plan presents a framework for accelerating

access to electricity in Mozambique with a focus on two main on-grid initiatives that progressively aim to increase

from 150,000 to 400,000 new connections per year: (i) intensify connection in densification zones, and ii) extend the

national electricity grid to rural areas with relevant population density.

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

Connections in non-OSA (borne by the electrification program) Connections in OSA (borne by EDM)


This commitment was recognized by development partners, resulting in an agreement to support EDM and FUNAE

through a 5-year World Bank Project called ProEnergia, funded by IDA and a ‘Multi donors trust fund’ (MDTF). This

project, which will provide technical assistance and operational capacity, is expected to result in 289,000 new home

electricity connections (via the grid, stand-alone mini grids and SHS) and will benefit 1.45 million people (representing

almost 5% of the population).

Recent events associated with two cyclones followed by heavy and flooding rains that have affected large areas of

the Central and Northern regions and caused significant destruction of the national power grid in an area where

energy access levels were already at their lowest in the country, represent a challenge for the sector as a whole, and

for the Government to achieve ENE's objectives. But they also provide an opportunity for EDM to plan its

electrification projects and establish operational plans to expand access to electricity.

Additional detailed information about the ProEnergia Project is attached in Error! Reference source not found..

Establishing an Electrification Operating Model Centrally Coordinated

by an EMU

To manage an electrification program with such a wide geographical reach and such ambitious growth in annual

connections compared to recent years, EDM will have to strengthen its planning and execution capacities, particularly

in relation to demand forecasting, characterization of densification and extension areas in all delegations, planning

and prioritization of electrification projects, programming needs of technical and material resources, provisioning of

funding, and the monitoring and management of projects and financial execution in an integrated portfolio approach.

This planning and execution will require reviewing and updating EDM's planning and operation procedures in areas

such as Engineering and Planning (centrally and locally), Budgeting and Finance Management, Materials and Equipment

Procurement, Logistics, Construction Scheduling and Technical Operations Execution.

Until now, EDM has focused on planning and executing projects that strengthen electricity supply and transmission

capacity, and that modernize and upgrade the national distribution network to achieve full coverage in all provinces.

The planning was fundamentally driven by the Master Plan of the Energy System and projects were implemented

using Finance + EPC contractual models. EDM's operations were limited to work supervision and the implementation

of technical solutions performed by subcontractors.

With the new electrification strategy, a specific Electrification Operations Plan should indicate areas where EDM will

have to make investments in electrification and home connections, complemented by off-grid solutions where

connections to the national electricity grid are not economically viable. This will involve a broad portfolio of smaller

projects spread across the country, based on cost-based engineering and project execution solutions as determined

by the criteria defined in NES. Instead of the EPC contractual model, EDM will complement project execution and

connections by Delegations with selectively contracted subcontractors to reinforce operational capacity.

World Bank assistance is already supporting EDM in improving standards and setting new project implementation

guidelines that facilitate project structuring and ensure the rational use of scarce financial resources. A new

procurement strategy is being implemented to take advantage of economies of scale in the procurement of materials

and equipment for the Electrification Program, as well as the logistics infrastructure and management procedures to

be adopted which have been redefined to ensure control and efficient delivery of materials to all projects.

Although these initiatives have been planned and are being implemented under the Electrification Program, most of

them are currently being coordinated by the recently established Project Implementation Unit at EDM dedicated to

the World Bank assisted ProEnergia project. The EMU’s design and establishment will be fundamental to plan to

achieve the connection objectives set out in NES, particularly for distribution network developments, connection

solutions, engineering, procurement, budgeting, and financial portfolio planning for the next three to five years.


2. OPERATING MODEL FOR

ELECTRIFICATION The SAEP team identified a set of critical requirements that should be addressed jointly with the Electrification team

and EDM Board of Directors to create favourable conditions for the start-up and operation of the new Electrification

Program operating and management model described in this document:

• Approval by EDM Board of Directors of the electrification management team with the role of supervision,

monitoring and evaluation of the Electrification Program, formalization of the roles and responsibilities of

each team manager and communication of the EMU Mandate to the operational areas involved in the

execution of the electrification processes

• Hold an official start-up session of EMU's operation with internal and external stakeholders

• Ensure that the electrification operational areas nominate people accountable for the electrification

processes, in the Planning, Distribution, Delegations, Finance, and Procurement and Logistics functional

areas

• Approve and operationalize the Electrification Steering Committee, to promote on-boarding and to train

its members in the rules of organization and operation of the Committee

• Approve the inclusion of the Electrification Plans and Monthly Management Report in the Electrification

Program Governance Model

• Enable the acquisition of a Knowledge Management platform

Once these conditions are met, the SAEP team is confident that EMU's management team and the EDM organizational

areas involved in electrification will be able to effectively coordinate the planning and execution of electrification

projects, their monitoring, evaluation and continuous improvement, in order to meet the objectives of the

electrification Plan.

The SAEP team has structured an operating model to support the management of the Electrification Program, which

is set out below in three focus areas:

i. Model of Electrification Governance

ii. Organizational and Management Systems

iii. Monitoring, Evaluation and Reporting Model

The first focus area of the Operating Model (Governance System) was introduced to ensure the existence of high-

quality information, clear plans and governance rules that will guide investments and enable effective decision-making

and stakeholder management.

The second focus area (Organizational and Management Systems) brings together a set of instruments and the

definition of roles and responsibilities of the organizational areas involved in electrification, to ensure the ability to

monitor and evaluate the progress and results of the electrification processes.

The third focus area aims at structuring all electrification-related processes, covering all cycle from planning, to

projects definition, programming and execution. Disciplining and ensuring effectiveness of these processes is critical

to good “execution” of the Electrification Program.


Model of Electrification Governance

SAEP recommends the implementation of an electrification governance model in which responsibilities and decision-

making power are organized between the various stakeholders at 3 levels (see illustration in the figure below):

• 1st level - Strategic orientation and decision

• 2nd level - Management and decision support

• 3rd level - Coordination, monitoring and evaluation

Figure 5. Decision levels in the Electrification Governance Model

Source: SAEP Team

At the 1st level, it is up to the National Energy Directorate, a member of the Ministry of Mineral Resources and

Energy and a public entity responsible for conducting the “Energia para Todos” Government Program, to establish

the strategic vision, guiding principles, objectives and goals and to refer them to EDM. and FUNAE, as entities

performing the electrification.

EDM's Board of Directors is responsible for deciding on the Electrification Plans prepared internally, submitting them

for final approval by MIREME / National Directorate of Energy. Any substantial revisions to the Electrification Plans,

objectives or targets should respect these decision-making powers.

At the 2nd level, Management and decision support will be provided by two bodies: (i) the MIREME Electrification

Committee, and (ii) the EDM Electrification Committee.

The MIREME Electrification Committee is responsible for approving and approving EDM and FUNAE's electrification

proposals and plans. Being responsible for ensuring compliance with the Government's National Electrification

Strategy and the “Energia para Todos” Program, as well as assessing whether the plans allow them to meet their

assumed electrification targets and reporting their compliance to the Government, will assess the application of the

criteria for prioritizing projects, the selection of optimal and rational electrification and financing solutions, as well

as defining responsibility for their implementation between EDM, FUNAE or joint.

The Committee, currently not yet operational, according to NES, will include representatives from MIREME, Ministry

of Economy and Finance, EDM, FUNAE, financing and development partners, among others.


For the purpose of reporting to the Government on the status and progress of the Electrification Program, the

Committee shall provide information to the National Directorate of Energy, which leads and coordinates the

Program. It may also, when necessary, interact with the EDM Electrification Committee to obtain relevant

information or streamline decision-making processes.

EDM's Electrification Committee is a new governance body to be set up under the Electrification Program, supporting

and reporting directly to the Board of Directors (CA), with a role of supervising, monitoring and reporting to the

CA on status, progress, results and risks in meeting the goals of the “Energia para Todos” Program.

In general terms, it will be up to this Committee to evaluate the quality of the Electrification Plans and to continually

evaluate the effectiveness of their implementation, to give the CA a critical view and enable it to intervene and make

corrective or improvement decisions. Its composition and operation shall be governed by the following rules:

• The CA permanent members should include the CA Executive Director responsible for the Electrification

Program, the EMU Director, the 3 EMU Expert Managers, the ProEnergia Manager, the DGD and the DES

and DPSE Directors.

• An extended version of the Committee may additionally include the DPFO Directors, DAL, the Director

of Public Relations and Communication, the DGC, the Regional Directors and the Delegates. And any of

those responsible may be invited to attend Committee meetings as required by their agenda.

• The Chairperson of the Committee shall be appointed by the Chairperson of the Board, who shall be

responsible for ensuring that the Board functions effectively, reporting the results of meetings to the Board

and the EMU, and submitting to the Board any electrification plans that require its approval accompanied

by their opinions.

• SAEP recommends that the Committee meet at least quarterly, although it should be convened

extraordinarily whenever critical issues impacting the Electrification Program arise or there is a need to

approve electrification plans.

• It is EMU's responsibility to submit proposals for electrification plans for consideration and opinion, as well

as management reports for the Committee's knowledge.

• It is desirable that the votes of the Committee allow unanimous decisions, however, if this is not possible

it should be decided based on the majority vote criterion, and the Chairman of the Committee is entitled

to a tie-breaking vote.

At the 3rd level, of a more operational scope, it is the EMU’s responsibility to ensure the coordination between

the areas that perform the electrification processes, including Planning and Engineering, Distribution and Delegations,

Commercial, Financial and Procurement and Logistics.

To this end, it will ensure that these areas carry out the electrification processes in a disciplined manner and in

accordance with the procedures and standards that the SAEP team, together with the ProEnergia team have defined,

which are contained in this Handbook. And it will implement a set of tools to monitor the quality and risks in these

processes as well as to evaluate the progress of the Electrification Program and its results, which are described in

the next section of this document. In this context, it will be up to EMU to continually assess the suitability and

continually improve the electrification planning and execution processes. These include reports and periodic

management meetings, as well as structured plans that will guide the action of all stakeholders in the processes.


APPROVAL FLOW FOR ELECTRIFICATION PROCESS ELEMENTS

The SAEP has defined the following Authority Matrix to support critical information and decision flows. This matrix

is an important component of the decision-making model, clarifying the responsibilities and powers of the

stakeholders that should be involved in the consideration and decision-making process of key plans and reports to

ensure the effectiveness of the Electrification Program.

Table 1. Authority Matrix (Inclusive of approval flow for electrification process elements)

Critical electrification

management areas

Levels of competence and authority

Originator Review and Issue Internal 3rd

Party Review

Final

Approval

Forecast Electrification Plan (annual) and its

revision (quarterly) DGD/Delegations

DPSE validates

EMU submits

Electrification

Committee

CA and

MIREME

Project Documents (proposed new

electrification projects) includes feasibility

and sustainability analyses

DPSE (DES and

DGD participate) EMU submits

Electrification

Committee CA

Proposals for allocating funds to

electrification projects DPFO

DES+DGD

validates EMU EMU

Proposals for electrification financing

solutions and contracts DPFO+DES

EMU validates and

submits

Electrification

Committee CA

Electrification Project and Activities Plan

(annual) and its review (monthly) DES

EMU validates and

submits

Electrification

Committee

CA and

MIREME

Delegation plans for connection promotion

and electrification DGD/Delegations

EMU validates and

submits

DPSE and DES (for your

knowledge)

Plan of Projects and Activities in Execution

and its revision (monthly) DES+DGD

EMU validates and

submits

Electrification Committee (for

your knowledge)

Estimated Electrification Financial Plan

(annual) and its revision (monthly) DPFO

EMU validates and

submits

Electrification

Committee CA

Electrification Procurement Plan (annual)

and its review (monthly) DAL

EMU validates and

submits

Electrification

Committee CA

Monthly Electrification Management Report EMU EMU submits Electrification and AC

Committee (for information)

Source: SAEP

STAKEHOLDERS MANAGEMENT AND COMMUNICATION

Successful and successful implementation of the Electrification Program requires the input and active participation of

numerous stakeholders. Not only must EDM mobilize required funds itself, it must also implement electrification

solutions regardless of the Government's priorities and solutions that FUNAE will implement in areas where on-grid

solutions are not economically rational, or mobilize companies in the sector to qualify and communities to organize

for participation in the Program to facilitate connections.

• Inform stakeholders about the objectives, solutions and benefits of population electrification and access to

energy, as well as business opportunities in the energy sector value chain (awareness);

• Provide clear information and explain the electrification plans and projects that EDM has planned or is

already preparing, including volumes of funds available and planned to be allocated to the Electrification

Program, fostering knowledge inclusion and participation;

• Inform stakeholders of the progress, results and impacts of feedback plans and projects.

However, before designing a management plan that effectively addresses these needs, it is necessary to understand

which are the relevant stakeholders and the type of communication events and actions that are most appropriate,


which is summarized in the table below. This should therefore be the benchmark of the stakeholder management

plan to be planned and implemented.

Table 2 Stakeholder Management Plan

Basic Needs Relevant Stakeholders Type of events and communication actions

Create

awareness

• Communities, populations

• EDM Delegations

• Suppliers / contractors

• Articles in national newspapers

• Local communication actions (radio, pamphlets)

• Participation in TV shows

Sharing

inclusive

knowledge

• Government, MIREME and FUNAE

• Development Partners

• Suppliers / contractors

• Business Community / CTA

• EDM Electrification Support Areas

• EDM Delegations

• Communities, populations

• Thematic Seminars on Electrification Plans

(periodical: semester)

• Electronic and physical dissemination of

Electrification Plans

• EDM and MIREME website (dedicated area

containing maps, plans, projects, donors)

Give regular

feedback

• Government, MIREME and FUNAE

• Financiers and Partners

• EDM Delegations

• EDM Electrification Support Areas

• Physical and electronic dissemination of an

electrification implementation report (periodic:

semi-annual)

• EDM and MIREME website (KPIs)

Source: SAEP Team

The SAEP team outlined the following communication and event action plan to manage information needs and their

involvement and participation in the Electrification Program.

Table 3 Event Action Plan

Type of events and

communication actions Targets Frequency Timing and responsible

Articles in national newspapers Society in general At least

monthly l

Immediate working with Dir. RP

and Communication

Local communication actions (radio,

pamphlets)

Communities and

entrepreneurs Continuously

Immediate working with Dir. RP

and Communication

Participation in TV shows Partners, Financiers,

Entrepreneurs

Periodic,

quarterly

Study options with Dir. RP and

Communication

National Thematic Seminars on


Government, Partners,

Financiers,

Entrepreneurs

Semi-annual First in Oct. (tentative)

Regional Thematic Seminars on


Partners,

Entrepreneurs,

Communities

Semi-annual First in Nov. (tentative)

Electronic and Physical Disclosure of


Government, Partners,

Financiers, Delegations

and Areas of EDM,

entrepreneurs

Quarterly /

Semi-annual Immediate for ProEnergia

EDM and MIREME website

(dedicated area containing maps,

plans, projects, donors, KPIs)

EDM Government,

Partners, Financiers,

Entrepreneurs,

Delegations and Areas

Monthly

update

Immediate (wake up area, decide

content and upload)

Physical and electronic dissemination

of an electrification implementation

report

EDM Government,

Partners, Financiers,

Delegations and Areas

In the

beginning of

the semester

End of the Year for ProEnergia and

Delegation Activities

Source: SAEP Team

EMU should validate this plan and prepare an investment budget for its implementation, working in conjunction with

the Public Relations and Communication Directorate and the Delegations. Once a plan and budget have been agreed

upon, it must be submitted to the Administration and submitted for consideration and approval.


Regardless of the internal and external resources that EDM can devote to the preparation and programming of the

communication actions and events listed in the plan above, you can quickly move forward with those identified as

short term (up to 3 months).

Where they require structured information and approval, such as Electrification Plans, EMU should consider

preparing initial versions considering only the scope of the ongoing ProEnergia project and broadening its content

base as it works with its planning work areas already have improved plans.

KNOWLEDGE MANAGEMENT AND ACCESS TO INFORMATION

Since EMU will supervise electrification processes generating data in supporting tools and systems, and critical

information in documentary form, the EMU must manage all this information and related plans and projects.

To this end, the EMU needs to be equipped with Knowledge Management capabilities. This capability should support

decision making, and information should be easily accessible and readily available. One of EMU's responsibilities will

be to provide timely and valuable information about the Electrification program to internal and external stakeholders

and will have to manage the quantity and quality of accessible information and consolidate it efficiently.

Currently, the most effective way for organizations in similar contexts to store and manage information is through

structured data rooms. The SAEP team has indicated to the Directorate of Information and Communication

Technologies (DTIC) the functional requirements for a proper Knowledge Management solution to manage the

needs of the Electrification Program.

Even though EDM does not have a structured and centralized data room to date, DTIC has assessed whether a

solution under development with the EDM Academy for project management could provide an answer. However,

after analysis, DTIC concluded and indicated that this tool does not meet the needs presented.

Once a knowledge management tool is evaluated and chosen, the DTIC must consult the ProEnergia team to initiate

the internal process of requesting the acquisition or access to use of a platform for the Project. Since DTIC does

not have this budgeted need, it will have to evaluate with the Operations Division (the acquiring internal entity) how

to allocate funds accordingly for the tool.

Overcoming this issue, DTIC indicated that it is possible that in a short time, it will begin preparing for the adoption

of the platform by working with EMU and the ProEnergia team. With the formal start-up of EMU's activity in the

second half of August of this year, DTIC sees it possible to start this work also during this period.

Organizational and Management Systems

EDM UNITS WITH ELECTRIFICATION RESPONSIBILITIES

The operation of an Electrification Program at EDM requires the involvement and participation of many bodies and

organizational areas, with clear roles and responsibilities. These can be classified in 4 levels:

1. Governance (administration);

2. Program Management;

3. Management of electrification operations;

4. Management of electrification support activities.

The Electrification Program is governed by a strategy defined in the document “National Electrification Strategy”

which defines objectives, principles and rules to prioritize the areas to electrify and decide on the most rational

solutions for providing energy to citizens. The Board of Directors (CA) is responsible for the strategic orientation,

as well as defining and agreeing with its Ministerial Guardianship the goals of electrification and access to energy. At

the Administration level, it is also incumbent upon the Operations Division to lead the implementation of the

Program and the Finance Division to mobilize and manage financing, also regulated in the “National Electrification

Strategy”, as well as the impacts and sustainability of electrification on EDM's accounts.


The Electrification Program Management responsibility is assigned to Eng. Joaquim Ou Chim, who leads an

implementation management team (PIU) dedicated to the World Bank ProEnergia Project. This is a cross-functional

EDM team with multidisciplinary functional skills, including planning, project management, procurement and financial

management, environmental and security management.

The effective performance of this role requires that the Program Management establishes two key instruments:

• Forecast Electrification Plan - this document will enable the Program Management to align with

EDM Board, Government and FUNAE on priorities and how to meet electrification targets and new

connections, as well as to preview potential partners and to the internal areas of project planning,

finance, procurement and operations of the level of effort and requirements to meet the targets. It is to

be prepared during the Planning Activity and Budget Cycle and to be part of the PAO.

• Electrification Projects and Activities Plan - this document aims to show which is the pipeline of

electrification projects and activities that EDM has in preparation, feasibility and programming, being in

constant evolution. This will facilitate the work of raising financial support for the Electrification

Program, reporting to the Administration and Government on progress in project preparation and

viability, as well as giving internal visibility on the projects being prioritized.

Regarding management of electrification operations, ambitious targets and responsibilities are set for the

implementation of new connections and their promotion to the communities to the General Commercial

Directorate (DGC) and the General Distribution Directorate (DGD). To this end, DGD together with the central

Planning Department (DPSE) must plan the electrification and network expansion activities as well as make

connections with its means and financial resources. DGD must oversee and support the electrification projects

which are managed by central DES project teams (but for the most part often performed by subcontractors). DGC

is required to ensure that the Delegations' business personnel are properly trained and prepared and effectively

carry out the customer contracting procedures, inspection and connection of the new clients to the network and

monitoring of consumption profiles and revenue generation.

The expected growth in the number of activities and electrification projects that EDM will launch simultaneously

throughout the country, and given the various departments involved, requires the structuring of a Portfolio of

Projects and Activities in execution and periodically report updated status information. Providing access to this

Portfolio to the above-mentioned departments will facilitate their participation and accountability in electrification

operations.

Finally, the design, feasibility, preparation and management of electrification projects involve a wide range of support

activities to be undertaken by multiple areas of the organization, with emphasis on:

• System Planning and Engineering Directorate (DPSE) - in addition to studying and planning

electrical expansion or reinforcement activities in an integrated manner, structuring the electrification

projects. This work should be carried out in coordination and involving central distribution planning as

well as the respective delegations.

• Financial areas - The Financial Planning and Budget Directorate (DPFO) can be held responsible for the

study of impacts and sustainability of the Electrification Program, fundraising, financial project allocation /

programming, and management of financing contracts, and the Treasury Directorate, managing

disbursements and payments.

• Procurement and Logistics (DAL) - is responsible for ensuring consolidated planning of materials and

equipment procurement needs, monitoring their execution by project teams, and ensuring effective

operational policies and capabilities in procurement management, supply management and procurement

management contracts.

• Social Energy Directorate (DES), also known as the EDM central projects management unit - is

responsible for managing the electrification projects (excluding the electrification activities that delegations

perform autonomously), with qualified teams and structured processes. Project execution management

requires coordination with Finance, DAL, Delegations and DPSE to ensure compliance with programming,


financial and procurement plans and to ensure network conditions and availability of operational

resources.

EMU STRUCTURE AND RESOURCES

Given the large number of organizational areas involved in the Electrification Program, the complexity of roles and

responsibilities, and the need for coordination and articulation in its action, EDM decided to reinforce the

electrification management team and mandate it to act as a Central Electrification Management Unit (EMU). EMU's

mission is to ensure the successful implementation of the National Electrification Strategy across departments,

coordinating as a delivery unit and through the efficient allocation of resources needed to promote grid connections,

contributing to the goal of universal access to energy that the Government has assumed as a priority.

Accordingly, the EMU should focus on supervisory and monitoring functions and have minimal implementation

responsibilities in electrification processes, so that its role adds value and is effective.

Success in performing this mission can be judged by the following performance criteria:

• Ability to mobilize funds and other support for the Electrification Program;

• Rate of access of the population to electricity;

• Balanced implementation plan for electrification and connection promotion in the country;

• Cost efficiency of electrification and investments in connections;

• Speed of execution of new projects and connections;

• Improved electrification planning and execution capabilities in EDM's business and support areas.

Having EDM approved a few months ago the establishment of an implementation management team for the

ProEnergia Program reporting to the Operations Directorate, it has decided to maintain this solution for the overall

Electrification Program Coordination unit – the EMU (see illustration below).

Figure 6. EMU Positioning in EDM Organizational Structure

Source: SAEP Team

The structure of the EMU management team, illustrated in the following figure, integrates a Program Director role

to whom the following management functions report:

• ProEnergia Project Manager - has responsibility for planning and monitoring Electrification

implementation, the relation with Financiers and with respect to the tasks assigned to the ProEnergia

Project Implementation Unit (PIU);

• Planning and Engineering Manager (GPE) - has the responsibility to monitor and evaluate the quality

of the Delegations and Central Forecast Connections Planning work (DPSE in conjunction with DGD),

related to the electrification projects, and promotion of connections to be executed by EDM;

• Projects Portfolio and Results Manager (GPPR) - has the responsibility to monitor and evaluate

the quality of the project's technical and financial feasibility work and the execution of the project program

Board of Directors EDM

Electrification Steering

Committee

EMU

Operations Directorate

Directorate YDirectorate X


and electrification activities, assessing impacts and results and reporting to all internal and external

Stakeholders;

• Operations, Procurement and Logistics Manager (GOPL) - has the responsibility of monitoring

the work of Delegations and contractors of electrification projects, ensuring the verification of contracted

works and connections made, the existence of operational or financial problems or constraints to the

compliance with project plans and their efficiency, and contribute to their prompt resolution.

These three managers, who will be added to the existing electrification team as well as the Project Manager, will

have a senior and expert profile, should ensure the coordination and articulation of the various EDM internal and

external stakeholders in the execution of electrification processes.

Figure 7. EMU Unit Structure

Source: SAEP Team

This structure for the EMU considers the minimum resources required for its initial start-up.

The following are specific responsibilities and tasks defined for each of these 3 EMU Managers.

Planning and Engineering Manager

• Ensure strict quality control of the planning and engineering procedures adopted and decisions made about

new electrification and connection investment projects.

• Support the Planning and Engineering Directorate and Delegations' local planning departments (and the

DGD Central Department) in applying the prioritization criteria and in deciding on the least costly

engineering solutions as defined in ENE and agreed among all the intervenient.

• Ensure timely decision-making on the execution of consultancy services aimed at reviewing the engineering

and grid system regulations in the ProEnergia Project WBG, in accordance with the approved Procurement

Plan.

• Maintain a consolidated plan and status of the progress of electrification and connection investment projects.

• Ensure routine identification of potential customers and material needs for electrification of identified areas.

• Ensure that electrification projects are well structured and that well-structured project proposals are

produced in order to allow funding to be acquired.

Projects Portfolio and Results Manager

• Be the keeper of up-to-date systematic and structured performance information and reports for the

Electrification Program. Support and advise the EMU Director in responding to update and reporting

requests from internal and external stakeholders.

• Ensure a dialogue with potential financial donors and sector development partners to maximize the

allocation of funds for prioritized electrification and connection investment projects.

• Support the Department of Finance, Regional Divisions, and Delegations/ Departments of Finance in

effectively planning the electrification program's financial needs.

EMU Director

(also ProEnergia Director)

EDM Electrification

Steering Committee

ProEnergia PIU team

ProEnergia Project Manager

Projects Portfolio and Results Manager

Planning and Engineering Manager

Operations, Procurement and Logistics Manager


• Promote the effective implementation of the Electrification Account and timely decision on the financial

allocation of the fund managed by the WBG within the ProEnergia project, in accordance with the approved

Procurement Plan.

• Maintain a consolidated and up-to-date plan and progress status for prioritized electrification and

connection investment projects.

• Be the focal point for all interactions and relationship management with Electrification's internal and external

stakeholders. Above all, advise and support the EMU Director.

• Ensure regular contacts with donors and development partners, with EDM sectoral partners such as

MIREME and FUNAE, and with key implementation “partners” such as EDM Regional Divisions and

Delegations and local communities to ensure the motivations, expectations, level of participation and

satisfaction with the Program goals, plans and results that have been achieved.

• Promote seminars and manage press releases to keep all stakeholders and society informed of the plans

and progress of the Electrification and Connections Program.

• Report on program risks and problems and propose mitigation actions to address these risks and monitor

progress to ensure that the goals set are being met across projects.

• Ensure that all information about the program is well structured and is stored in a repository that allows

authorized people to collaborate and share knowledge between different electrification projects and

programs.

Operations, Procurement and Logistics Manager

• Supervise the execution of all planned electrification and connection projects regardless of whether they

have been centrally structured and funded or approved and funded by Delegations to ensure that the

operations of both subcontractors and Delegations receive the materials and equipment necessary to

perform the scope of services approved for each project (timely and in compliance with specified quality

standards).

• Support Delegations in anticipating implementation constraints related to operational resources and

subcontractors' ability to execute on materials and equipment, identify mitigation plans and accelerate

decision-making to overcome them.

• Monitor the execution of Procurement and Logistics solutions / reengineering agreed with the ProEnergia

Project WBG, and regularly report whether implementation plans and solutions are being ensured and

consolidated by EDM operations.

• Evaluate and report on the level of control and management quality of EDM's Central Procurement and

Logistics Directorate and Electrification Project Managers to assure donors and development partners that

funds are being properly applied.

• Monitor the implementation of Project Procurement Plans agreed with development partners such as WBG

and AfDB, ensuring that project teams comply with donors and development partners Procurement

Procedures

• Ensure timely reporting and ensure that EDM Project Managers comply with Project Management Reporting

and Monitoring procedures and requirements from donors and development partners such as WBG and

AfDB.

• Monitor consolidated Electrification procurement plan and ensure that targets are met.

• Perform supplier-related contract management activities for electrification programs.

Due to the near-term expected growth of the Electrification Program, the SAEP Team anticipates the need to revise

this structure, notably reinforcing support functions, such as stakeholder and communication management. The

Inception Report that the SAEP team prepared at the end of EMU Assistance Task I indicates the desirable structure

to be consolidated in EMU in the future after an initial set-up phase (see Figure 8 below).


Figure 8. Proposed EMU Structure

Source: SAEP

This future structure considers three key Management Areas that can be equivalent to Departments, to be led

by Senior Functional Experts: i) Electrification Planning (EP), ii) Electrification Portfolio Management (EPM), and iii)

Electrification Execution Management (EEM). The rationale of this structure is that managing the Electrification

challenge requires three distinct capabilities:

• Work at “local level” to collect information, assess and propose/validate decisions on where to

promote electrification and connection investments (forecast planning of electrification areas,

investments required and target connections).

• Structure and implement a portfolio approach. Managing the Electrification Program involves taking

decisions on where to prioritize, allocate resources and combine the intervention of a multiple set of

projects and implementing entities, including maximizing financial and operational synergies. This can only

be effective if planning and decisions are taken, as well as implementation monitoring, based on structured

information for a portfolio of investments and projects.

• There is a crucial execution component of projects and investments that require operational knowledge

and execution management expertise.

Both the EPM and the EEM functions require specialized staff teams, covering the functional areas of Planning &

Engineering, Finance Management, Operations Supervision, Procurement & Logistics Supervision and Budget

Execution Supervision.

In addition, the recommended organizational structure also considers two support staff functions to the EMU

Director responsible for cross functional processes, namely:

• Stakeholders & Communication Management – the Electrification Program will require providing data,

reporting and involving groups of stakeholders from the Government, the Ministry MIREME, Development

Partners, Funders, Private Sector Community, Regional and Local Public Authorities, Local Communities

and EDM Regional Divisions and Local Delegations, which will play a crucial role in executing the

electrification program investments and projects.

EMU Director

EDM Electrification Steering Committee

Electrification Execution

Management (EEM)

Electrification Portfolio Management (EPM)

Electrification Planning (EP)

Stakeholders & Communication

Management

Performance Control &

Reporting

Planning & Engineering

Finance Management

Operations Supervision

Procurement & Logistics Supervision

Budget Execution Supervision

Board of Directors


• Performance Control & Reporting – a major program like “Energia para Todos” with ambitious and

complex targets and objectives that will mobilize significant amounts of funding and investment projects,

requires structured performance control and reporting mechanisms, providing information to all external

and internal stakeholders regularly. A particularly important responsibility of this unit must be to

implement effective knowledge management tools and procedures ensuring availability, quality and

integrity of information.

Monitoring, Evaluation and Reporting Model

SAEP has structured a Monitoring, Evaluation and Reporting model to be implemented for the Electrification Program

consisting of three sets of complementary management tools:

• Structured elements of management information;

• Internal control and risk management routines;

• Electrification management meetings.

The figure below illustrates the elements that make up each of these sets of instruments, which are described in the

following three sections to guide EMU in its operation.

Figure 9. Overview of the Monitoring, Evaluation and Reporting Model Structure

I. Structured Information Management Elements

This section describes the various instruments to be implemented by EMU to provide management of data sources

and information elements that will support:

• decision-making in electrification processes

• forward planning of areas to be electrified prioritization and programming of projects

Electrification Databases

SAEP proposes that the full set of five structured electrification databases be created

and managed in Google's G Suite collaborative toolkit that EDM already uses. This way

it is possible to share and use it simultaneously by several EDM operational and

management areas, controlling its integrity, access, and its feeding.

1) Database of priority areas to be electrified in Delegations (Forecast)

2) Database of priority projects to be feasible and executed (Project pipeline)

3) Database of electrification activities programmed by Delegations (Activity Pipeline)

4) Database of electrification projects under execution (Project Portfolio)

5) Database of electrification activities under implementation by Delegations (Activity Portfolio)

I. Structured information

management elements

II. Internal control routines and risk

management


III. Electrification management meetings

Electrification Plans and Projects

Management Reports

Management Dashboards

Internal Controls

Risk Management

Process

Coordination and Decision

Meetings

Monitoring and Evaluation Meetings



All the following databases were developed together with the current EDM Electrification Team (the ProEnergia PIU

Team) and with the inputs and validation by EDM Departments involved in the planning and execution of

electrification activities.

1) Database of priority areas to be electrified in Delegations (forecast)

This database aims to organize the necessary information for Delegations to prioritize and substantiate

the areas to be electrified, potential connections, solutions to be implemented and the necessary

resources and investments, either to make the connections or to reinforce the electricity system in order

to avoid future constraints on supplying quality energy.

These information elements will be used for the preparation of the Electrification Forecast Plan (described

in this section), which should be included in the Annual Activity and Budget Plan (PAO).

Responsibility for the maintenance and quality of the information contained in the database will lie with

the Directorate General for Distribution (DGD). Their feeding is continuous as the delegation planning

areas collect data and characterize the areas to be electrified.

The database contains the following sections of information:

• New call execution history

• Forecast survey of new calls for ProEnergia 2019-24

• Data collection for the 2020 to 2022 forecast cycle

• Potential call survey monitoring

The following illustrates the database that was structured by the SAEP team in conjunction with the

ProEnergia EDM team.

Figure 10. Database model of priority areas to be electrified in Delegations (forecast)

Source: SAEP Team, ProEnergia EDM Team

2) Database of priority projects to be feasible and executed (Project pipeline)

This database aims to organize the information elements that characterize the projects that DGD,

together with DES, are prioritizing, structuring, evaluating their technical and economic and financial

viability and making them financially viable. To this end, it covers the entire management cycle from the


decision to initiate the study / design of a project to its feasibility and approval by the EDM Electrification

and Administration Committee and the positive opinion of MIREME

It is therefore an Electrification Project Pipeline, which will allow EDM to draw up an Electrification Project

and Activities Plan (described in this section).

Responsibility for maintaining and quality of the information contained in the database will be shared

between the Directorate General for Distribution (DGD) and the Directorate of Social Energy (DES). It

should be fed / updated at least monthly so that the Electrification Project and Activities Plan reliably

conveys the pipeline in which EDM is working to enable electrification.


• Characterization of electrification projects

• Control of the structuring and decision cycle



Figure 11. Priority projects database model to be feasible and executed (Project pipeline)

Source: SAEP Team, ProEnergia EDM Team

3) Database of electrification activities programmed by Delegations (Activity Pipeline)

This database aims to organize the information elements that characterize the electrification activities that

the DGD, together with the Delegations, are prioritizing and structuring, and whose funding and feasibility

is their responsibility. To this end, it covers the entire management cycle from the decision to start the

study / design of an activity to its feasibility and approval by the DGD. These electrification activities are

usually small, since when they involve large investments or are of high technical complexity, DES is

responsible for structuring and enabling them, in coordination with the Delegations.

It is therefore a Pipeline of Electrification Activities that will add to the Electrification Project and Activities

Plan (described in this section).

Responsibility for the maintenance and quality of the information contained in the database will lie with

the Directorate General for Distribution (DGD). It should be fed / updated at least monthly so that the


Electrification Project and Activities Plan reliably conveys the pipeline in which EDM is working to enable

electrification.


• Characterization of electrification activities

• Control of the structuring and decision cycle

The database structure follows the same structure as the Project structure, but will be implemented

separately as there will be individual tables per Delegation and to be consolidated by DGD for all

Delegations.

4) Database of electrification projects under execution (Project Portfolio)

This database aims to organize the information elements that characterize projects that have “advanced”

to execution, including their composition, programming, solutions and investments, executing entities,

among others. To this end, it covers the entire management cycle of project implementation, up to the

validation of the work and connections carried out and project closure.

It is therefore a Portfolio of Running Electrification Projects, which will allow EDM to draw up a Plan of

Running Electrification Projects and Activities (described in this section).

The responsibility for maintaining and quality of the information contained in the database will be with

DES. The feed / update should be done at least monthly so that the Running Electrification Project and

Activities Plan reliably conveys the “electrification portfolio” that EDM is running.


• Characterization of electrification projects

• Run cycle control



Figure 12. Database model of electrification projects under execution (Project Portfolio)


Fonte: SAEP Team, ProEnergia EDM Team

5) Database of electrification activities under implementation by Delegations (Activity

Portfolio)

This database aims to organize the information elements that characterize the electrification activities that

the Delegations are carrying out, including their composition, programming, solutions and investments.

To this end, it covers the entire management cycle of the execution of an electrification activity, up to the

validation of the work and connections carried out and closure.

It is therefore a Portfolio of Running Electrification Activities, which will allow EDM to draw up a Plan of

Running Electrification Activities and Projects (described in this section).

Responsibility for maintaining and quality of the information contained in the database will lie with DGD.

The feed / update should be done at least monthly so that the Running Electrification Project and Activities

Plan reliably conveys the “electrification portfolio” that EDM is running.


• Characterization of electrification activities

• Run cycle control

The database structure follows the same structure as the Project structure but will be implemented

separately as there will be individual tables per Delegation and to be consolidated by DGD for all

Delegations.


Forecast Electrification Plan (PREV.PLAN)

This plan (PREV.PLAN) will provide EDM with an instrument that will enable it

to show to Government and other Stakeholders, namely MIREME, FUNAE

(electrification partner), donors and development partners, their vision of the

potential and priority areas and electrify within a 3-year time horizon, in line with the effort / objectives

it intends to develop, as well as the required electrification solutions and investments (densification or

extensification) and the type of funding involved, as they are OAS areas or non-OAS to be electrified as

defined in NES.

The following table presents a set of organizational elements:

Production /

accountability

General Directorate of Distribution (DGD)

Approval (CA), with the opinion of the Electrification Committee

Recipients MIREME, IGEPE, FUNAE, donors and development partners, DPSE, DES, Financial Planning

and Budget Directorate (DPFO), DAL, DGC and Delegations

Frequency Annual, quarterly review

Structure and

Contents

1. Contextualization

1.1. Introduction to the Electrification Program

1.2. Objectives of the Electrification Program by 2030



Structure and

Contents

1.3. Electrification Rate and Program Execution Level

1.4. MIREME Electrification Vision (Consolidated)

2. Objectives and ambitions for the next three years

2.1. Goals for new connections over next three years

2.2. Rationale of priority areas to be electrified

2.3. System Availability and System Interventions

2.4. Own and Subsidized Expansion Areas

3. Investment and Procurement Needs

3.1. Material and equipment needed (electrical system interventions and new

connections)

3.2. Investment Needs

4. Structuring available funding and funds (including pipeline)

Project Plan and Electrification Activities (PROJ.PLAN)

This plan (PROJ.PLAN) will provide EDM with an instrument that will allow it to show to the Government

and other Stakeholders, namely MIREME, FUNAE (electrification partner), funding entities and

development partners, what is the project pipeline which EDM has decided as a priority and is working to

evaluate and make them viable.

This information will support the dialogue with its partners to (i) ensure coherence and rationality in the

decision of electrification projects, in liaison with FUNAE and MIREME (directly and through the MIREME

Electrification Committee), and ii) facilitate procurement, negotiating and mobilizing funding in a timely

manner so as not to compromise the electrification objectives assumed for the next 3 years


Production /

accountability

DES (although requires DGD participation in the electrification activities component)

Approval (CA), with the opinion of the Electrification Committee

Recipients MIREME, FUNAE, donors and development partners, DPSE, DGD, Financial Planning and

Budget Directorate (DPFO), DAL, DGC and Delegations

Frequency Annual (based on the PAO and the Estimated Electrification Plan), with monthly review

Structure and

Contents

1. Synthesis of electrification progress

2. Overview of the electrification pipeline

2.1. Project pipeline characterization by stage

2.2. Projects and expected results

2.3. Forecast analysis of EDM's economic and financial impacts and sustainability

3. Project summary (solution, feasibility studies, investments, financing, ...)

4. Summary of electrification promotion activities

5. Summary of fundraising activities for electrification

6. Priority actions and decisions


Project Plan and Activities Running (EXEC.PLAN)

This plan (EXEC.PLAN) will provide EDM with an instrument that will enable it to periodically assess

progress, achievements and risks in the implementation of the Electrification Program and, accordingly, to

decide on improvement actions to be taken.

And it will allow EDM, externally, with the Government and donors and development partners to report

on the progress and results achieved with the Electrification Program, as well as its economic and financial

impacts and on the sustainability of EDM's accounts.


Production /

accountability

EMU (in conjunction with DES for projects and DGD for electrification activities)

Approval Electrification Committee (must provide an opinion to the Management Board and report on

risk situations with significant potential for impact)

Recipients Electrification donors, DGD, DES, DPSE, Financial Planning and Budget Directorate (DPFO),

DAL, DGC and Delegations

Frequency Monthly

Structure and

Contents

1. Overview of the “electrification project portfolio and activities”

1.1. Portfolio characterization (per stage of the execution cycle)

1.2. Physical execution rate and comparison with schedule and goals

1.3. Financial Execution and Procurement / Logistics

1.4. Global risks and mitigation actions

2. Critical analysis by Project and Delegation (activities) on the following topics:

i) Degree of compliance with physical, financial and procurement programming

ii) Comparison of electrification results and new connections versus contracted

iii) Project and Delegation risks, and mitigation actions

3. Priority actions and decisions

Management Reports

The SAEP team recommends that EMU prepare and distribute internally within the EDM management

team (relevant directorates) a Monthly Electrification Management Report. This

report will be the basis of the Monthly Electrification Management Meeting to be

organized by EMU (see section 3.4.2.3).

At the end of the first semester and of the year EMU should produce a version of this report with

conclusions and recommendations that will allow the Electrification Committee and the Board to make

decisions to improve the effectiveness and efficiency of the Electrification Program.

The following table presents the structure and basic contents for the operationalization of this report.

Structure and contents Intervening Areas

Intro Summary of conclusions and recommendations

(with specific sections for each chapter of the report) EMU Director

Management Reports


Structure and contents Intervening Areas

Chapter 1. Global Performance in Electrification KPIs

Suggested KPIs: New Connection Number, Energy Access Rate, Average Investment

per New Connection, Total Electrification Investment

Aspects of analysis and decomposition:

- Comparison of achieved with goals (in the month and period accumulated)

- Analysis of trends and trends (comparison with same period)

- Decomposition by Delegations and Regions

- Results by electrification solution (densification and extensification)

- Results by solution / funding source

- New Call Estimates and 3 Month Access Rate (forecast)

Note: The quarterly revision of the Electrification Forecast Plan may determine changes

to the electrification targets and projects.

EMU Portfolio Manager

DGD and Delegations

Electrification Project

Managers

Chapter 1I. Performance of Electrification Projects

Suggested KPIs: New Connection Numbers, Average Investment per New Connection,

BT and MT Line KMs, Installed PTs No, Electrified Public Infrastructure No

Aspects of Analysis:

- Comparison of achieved with goals (in the month and period accumulated)

- Physical execution, financial and procurement rates vs. planned

- Critical analysis of project quality (compliance / deadlines, cost, contracted solutions,

financial program, procurement plan)

- Risks and mitigation actions


Electrification Project

Managers

Chapter 1II. Result of electrification monitoring actions

- Implementation of the Electrification Financial Plan

- Implementation of the Electrification Procurement Plan

- Audit of works by contractors and delegations (includes connections)

- Audit of financial disbursements

- Project prioritization, funding allocation / programming

- Implementation of Delegation Connection Promotion Plans


EMU Plan. & Eng. Manager

EMU Operations Manager

DPSE and DGD

Delegations

DAL, DPFO

Chapter IV Global Risks to the Electrification Program EMU Director

Chapter V. Stakeholder Communication and Management Actions

Actions taken (feedback) and scheduled actions EMU Director



The SAEP Team designed a preliminary Executive Dashboard to be

validated/reviewed and then implemented by the EMU, to provide the Board,

the Management Team and relevant external stakeholders with simple

performance data on critical indicators (see picture below).

A more Operational Dashboard may be developed by the EMU integrating more detailed and operational

KPIs as well as an overview of the Projects Pipeline and Execution Portfolio (eg. Indicators such as number

of projects in each stage, size and targets, execution status, etc.).

II. Internal Control Routines and Risk Management

Below we present what we consider to be the most important internal control

routines that EMU managers should implement on the electrification processes

to ensure that certain critical decision outputs or moments respect what is

established in the processes and thus whether promotes discipline and effectiveness of the Electrification

Program.

Internal Controls

Control Routines to Planning and Engineering processes

Responsible: EMU Planning & Engineering Manager


Internal Controls


Control Routines Involved areas Process

• Verify the quality of the estimated connections and the rationale for selecting

the priority areas to be electrified (with each Delegation) Delegations, DGD P&E.1

• Verify that in the “planning of connections” the Delegations carried out an

analysis of actual and expected loads, network capacity and need for

reinforcements.

Delegations, DGD P&E.1

• Control the timing of production and approval of the Forecast Electrification

Plan (PREV.PLAN) (annual) and its review (quarterly), and compliance with

the rules of governance of electrification (opinions and approval) DGD P&E.1/3

• Validate the quality of the analysis outputs to the availability of the electrical

system and its availability to DGD and Delegations DPSE and DGD P&E.2

• Monitor the planning work of the areas to be electrified in the country and

with what type of solutions jointly by DPSE, FUNAE and MIREME (critically

assess decision criteria and compliance with NES rules) DPSE P&E.2

• Critically evaluate criteria for prioritization and structuring of new projects

(and compliance with NES rules) DES and DGD P&E.4

• Ensure compliance with governance rules in the appraisal, decision and

approval of new electrification projects EMU, DES, DGD P&E.4

Control Routines to Pipeline and Project Portfolio Management processes

Responsible: EMU Portfolio and Performance Manager


• Validate economic and financial impact analysis and sustainability of EDM

accounts for each new electrification project DPFO GFO.1

• Control the timing of production and approval of the Electrification Projects

and Activities Plan (PROJ.PLAN) and its (monthly) review, and compliance

with electricity governance rules. (opinions and approval) DES P&E.4

• Control the production timing and approval of the Project and Execution Plan

(EXEC.PLAN) and its revision (monthly), and compliance with electricity

governance rules. (opinions and approval)

DES EXE.1

• Control the production timing and approval of the Electrification Forecast

Financial Plan (annual) and its revision (monthly) DPFO P&E.5/6

• Control the production timing and approval of the Electrification

Procurement Plan (annual) and its revision (monthly). DAL P&E.7/8

• Verify the quality of information in the Monthly Electrification Management

Report and ensure its internal disclosure. EMU -


Control Routines to Project Execution and Operations processes

Responsible: EMU Procurement, Logistics and Operations Manager


• Verify the quality of Contractors and Tax Consultant reporting on work

performed (TORs quantity and compliance) DES EXE.1

• Audit CMS records of new connection and reconciliation order and contract

information with electrification project information (verify that customer

information is complete and georeferenced) DTIC, DAI and DES EXE.1

• Audit Delegation inspections of contractors' new connections work DAI, Delegations,

DES EXE.1

• Audit the consumption profile of new electrification connections in CMS and

assess potential fraud situations or incorrect contracts DGC and

Delegations EXE.1/3

• Verify compliance with financial disbursement procedures for projects agreed

with donors DPFO and DES GFO.2

• Verify the quality of records of charges for electrification projects in the

electrification accounting system to allow monitoring and reporting of

investments in the electrical system versus wiring DPFO GFO.2

• Verify compliance with reporting procedures for physical and financial

execution of electrification projects to funders DES and DPFO GFO.2

• Audit the registration of equipment and materials supplied to projects in the

electrification virtual warehouse, and reconcile with project information DAL and DES P&L.1/2

• Verify that all Delegations have a structured and implemented process for

community involvement in the Electricity Program. DGD and

Delegations EXE.3

Risk Management Process

Risk can be defined as “The likelihood of loss or the lowest chance of gain caused

by factors that inadvertently affect the achievement of the objectives of the

organization or a highly relevant Project or Program.”

It is therefore clear that the risk may have a negative impact (loss of value) but may also have a positive

value creation effect - both sides of the risk.

In SAEP's view (following figure), in Corporate Risk Management, three aspects

should be considered: i) risk management process at business unit level and

support, ii) infrastructure and risk supervision at directorate level and iii) risk

governance at management level.

Risk Management

Process


Figure 13 Corporate Risk Management

Source: Deloitte Consulting, LLC

For the specific case of the Electrification Program, the SAEP team recommends a first line of Risk

Management and Control at the level of the organizational areas with responsibility for the Electrification

processes. Following a second line of assurance to be ensured by the EMU team, which will monitor,

evaluate and report process risks. Finally, to support the CA in its supervisory role, it is proposed to have

a 3rd line Assurance under the responsibility of the Electrification Committee. As illustrated in the

following figure.

Figure 14 Proposed organization of the CA

Source: SAEP Team


In defining the electrification processes and management and governance tools, responsibilities are

described and the potential and most relevant risks that the organizational areas responsible for the

processes and the EMU and the Electrification Committee should assume are identified.

It will be necessary to equip the Electrification Program with risk analysis and reporting methodologies

and tools, as well as their treatment at these 3 levels of management. For this purpose, we detail below

the methodologies and tools that we consider necessary to implement a structured and systematic risk

management process in the Electrification Program, at the level of:

• Key Indicators Methodology;

• Risk Classification;

• Risk Assessment;

• Risk Treatment;

• Criteria for risk escalation;

• Support tools.

Key Indicators Methodology

Key indicator management is a critical component of the risk management process. This implies the

identification and reporting of indicator measures, analysis of indicator measures to identify current

problems, and above all, the ability to identify trends and make appropriate forecasts.

In order to ensure that there is an efficient key indicator management process, a reporting process will

be agreed by EMU at fixed intervals (daily, weekly, monthly, etc.).

An indicator usually has three associated thresholds, which are indicative of appetite or tolerance for the

associated risk. For each of the thresholds illustrated below, specifications should be defined in terms of

the risk rating criteria at each of these risk levels.

For indicators that are outside the acceptable risk limit (orange or red), a comprehensive process and

treatment plan shall be agreed upon, and ownership shall be defined as agreed by the EMU and the

Electrification Committee.

In order to determine the measure of the indicator and the number of objectives, critical success factors,

risks, and controls will be considered by EMU, as illustrated below. The measure associated with a key

indicator confirms the assessment of the associated control, risk, or objective. If there is a discrepancy

between the measurement of an indicator and the result of a previous assessment, a new assessment

should be triggered.


Risk Classification

Risk analysis aims to separate minor and acceptable risks from major risks, and to provide information

that supports the assessment and monitoring of these risks. The level of risk is determined by combining

the consequence classification and the likelihood of risk.

The risk rating process should consider the absence of critical controls, not just the analysis of current

controls. The occurrence of one risk may impact another risk. It is therefore important that

interdependencies and correlations between risks are also considered after the initial analysis, or as part

of a specific scenario analysis.

EDM does not always work with perfect information. Confidence in determining the level of risk should

also be considered in the analysis. This context is also important as part of the reporting process.

Risk classification consists of three stages: i) risk identification, ii) risk analysis, and iii) risk assessment,

which are detailed below.

Risk Identification enables management to be aware of the Electrification Program's exposure to

risks, including those risks that are new and emerging and those for which the source of risk is

beyond EMU's control. The purpose of the risk identification activity is to generate an exhaustive list

of risks based on events or circumstances that may highlight, prevent, accelerate, degrade or delay

the achievement of the Program objectives.

A structured and systematic approach to risk identification will be followed to ensure that all key

risks within the Program are identified. This will be achieved by (a) understanding the strategic and

operational objectives of the Program, and (b) analyzing the electrification process to identify

significant risks arising from these processes.

An accurate and clear text needs to be articulated when describing the risks. The text should contain

a description that covers at least the following:

• Something occurs … or “risk event”;

• Leading to … or possible impacts /consequences of a positive or negative nature and

measure;

• Caused by … or direct, latent or root cause of risk; and

• Controlled by … existing controls.

Relevant and up-to-date information is important for risk identification, and when accompanied by

evidence it should be used to identify risks as well as supplement risk perception by management.

These methods are a subset of the methods identified in ISO 31010 (Risk Management - Risk Analysis

Techniques) for risk identification: Workshops and interviews, brainstorming sessions, risk studies

and surveys, business policy reviews and procedures. operating conditions, use of expert knowledge,

use of industry-specific checklists, use of artificial technology and other machine learning techniques.

Risk Analysis helps to understand the nature of the risk and to determine the level of risk. Risk

analysis and measurement contribute to decisions regarding the need to address risks as well as the

definition of the most appropriate and cost-effective strategies. Risk analysis and measurement

involves considering the causes of the risk, its positive and negative impacts, and the likelihood of

those impacts occurring, as well as the speed of manifestation or the speed with which a risk may

materialize. Factors affecting the consequences and likelihood of risks should be identified and

considered as controls.


Risk analysis is developed with different degrees of detail, depending on the risk, the purpose of the

analysis, and the available information, data and resources. The level of risk detail should match the

purpose: significant risks should be analyzed in more detail compared to lower risks that do not have

a major impact on the project:

• Qualitative risk analysis and classification provides a detailed view of risks in the form of a risk

register.

• Quantitative risk analysis in the form of financial modelling and data simulation enables more

detailed prediction of specific events.

Specialized risk analysis techniques and methodologies should be used for risks that need to be

analyzed in significant detail when appropriate.

To gain a better understanding of risk, it is critical that the causes and sources of risk be identified.

The risk may be caused by internal or external factors; therefore, this process cannot be eliminated

from the risk assessment exercise as it assists management in identifying controls.

Factors affecting the likelihood of risks can be identified. The adequacy of control design and

operational efficiency are first determined. This step is followed by determining the severity of the

consequences if the risk event occurs, considering the efficiency rating. The speed of risk

manifestation is also a factor to consider, as a risk that may materialize faster requires more proactive

attention than a risk that allows warnings before it fully materializes.

After determining the severity of the consequences, the likelihood of these consequences occurring

undetermined, consider the adequacy of the controls (if the control will be effective if applied and

designed), and the classification of the control effectiveness selected in first step. These two

classifications, together with the severity of the consequences and the likelihood of the consequences,

define residual risk, which is plotted in the risk matrix to allow risk prioritization.

Risk assessment is the analysis and measurement of the identified risk. The purpose of risk

assessment is to support management at all levels by prioritizing significant rich in their areas and to

support decision making based on the results of risk analysis and measurement. It is not practical for

any organization to handle all risks in the same way. Therefore, risk prioritization allows management

to allocate more time, effort and resources to risk management that are more likely to happen. Risk

assessment involves:

• Comparing remaining risk with acceptance criteria and setting priorities such as which risk

should be addressed first and how best to address it. Some risks may require new or revised

controls enabled by task initiation. Others may require existing controls to be better or

correctly applied. Still others may require an independent audit to establish the effectiveness

of existing controls, i.e. the efficiency / diligence of applying controls or the extent to which

control design will reduce / mitigate risk.

• Priority setting after risk analysis. The establishment of the risk to be treated first depends on

the magnitude of acceptable residual risk. Here a decision must be made based on the

decreasing order of impact to EMU. In addition, interrelationships with other risks should be

examined and the full impact of the consequences should also be examined as this influences

prioritization.

• Defining an optimal treatment plan through cost-benefit analysis.


EDM has to make prioritization decisions based on the results of the risk analysis by comparing the level

of risk encountered during the analysis process with the risk / appetite and risk tolerance criteria

established as part of the Framework design and confirmed. prior to risk assessment as part of context

confirmation. This will result in treatment and prioritization for treatment implementation.

Risk Treatment

Risk response / treatment is concerned with developing strategies for reducing and eliminating threats and

events that may create risks with negative impacts or for taking advantage of opportunities and achieving

positive impacts from those risks. Risk handling is done for all material risks by prioritizing risks that

exceed or approach risk appetite or tolerance levels. The purpose of risk treatment is to select and

implement options to address risk. It involves an iterative process of:

• Formulation and selection of risk treatment options;

• Planning and implementation of risk treatment;

• Assessment of the effectiveness of risk treatment;

• Deciding on the level of acceptance of the remaining risk;

• If not acceptable, additional risk treatment.

The project will also have to evaluate risk treatment options, taking the following into account:

• Evaluation of existing controls;

• The assessment of the tolerability of risk levels;

• If not tolerable, the need to create a new risk treatment approach or not;

• The ability to optimize risk that is within appetite and tolerance levels; and

• The potential effectiveness of that treatment.

Selecting the most appropriate risk treatment options involves balancing potential benefits derived from

achieving objectives against the costs, effort and disadvantages of implementation.

It should be noted that these options are not mutually exclusive or appropriate under all circumstances.

Risk treatment options may involve one or more of the following:

• Avoid risk / seek opportunities - This means not proceeding with the activity that results in risk,

considering the loss of opportunity for gain;

• Materialize or increase risk in order to seek an opportunity;

• Remove the source of the risk;

• Change probability - This is done by applying internal controls to reduce the likelihood of risks

with negative impacts and to increase results with potential profit benefits where the rich have a

positive impact;

• Change the consequences - To increase gains and reduce losses. This may include emergency and

business continuity plans.

• Risk Sharing - Risk sharing with other parties (including contracts and risk financing);

• Retention - Risk retention through informed decisions.

Risk treatments, even when carefully designed and implemented, may not produce the expected results

and may produce unintended consequences. Monitoring and review should be an integral part of risk

treatment implementation to ensure that different treatment forums become and remain effective.

Treating the rich can also introduce new risks that need to be managed. If there are no treatment options

or if treatment options do not sufficiently modify the risk, the risk should be recorded and maintained for

review.


Decision makers and other stakeholders should be aware of the nature and extent of the risks remaining

after risk treatment. Remaining risk should be documented and subject to monitoring, review and where

appropriate, additional treatments.

Preparation and implementation of risk treatment plans:

The purpose of risk treatment plans is to specify how the selected options will be implemented, so that

the arrangements are understood by all stakeholders and that progress against the plan can be monitored.

The treatment plan should clearly identify the order of implementation of risk treatments

Risk management plans should be integrated into the organization's management plans and processes, in

consultation with appropriate stakeholders.

Treatment plan information should include:

• The rationale for selecting treatment options, including expected benefits;

• Those responsible for approving the implementation of the plan;

• The proposed actions;

• The resources required, including contingencies;

• Performance measures;

• The limitations;

• Reporting and monitoring required; and

• The expected moment of execution and completion of the actions.

Risk management plans should be integrated with management processes and discussed with stakeholders

to ensure enough attention, progress and effective implementation.

It is important that key risk indicators are calibrated at least annually to ensure that the defined indicators

and thresholds remain appropriate.

Criteria for risk escalation

Typically, there is a color coding associated with the key indicators as explained above. When in the

orange quadrant, the risk needs to be scaled to the next level of management for notification and possible

risk response decision.

Indicators that have moved to the red quadrant should also be reported to the central risk framework.

These will be considered for the Program risk report.

Support Tools

In order to record the risk in a way that is adaptable and relevant to this project, the table below can be

considered, where the measures highlighted in yellow can be selected based on points that are relevant

to the Program:

Figure 15 Example Risk Register Template

Department Evaluation Date

Department Manager

Evaluation participants


Description of the purpose of the

structure / process / product to be

evaluated and relevant internal and

external context

Definition of the scope of the

assessment

Figure 16 Probability Rating Table

In order to measure any of the risk criteria, a table should be created beforehand to ensure consistency

in risk measurement. An example of a leadership board is illustrated below:

Probability Category

Quantitative Criteria

General Criterion

Almost right 5 The risk is occurring at the moment, has occurred or will take place one or more times a year.

Probable 4 More than a possibility of occurrence. Likelihood of occurrence under current circumstances, expected annually or every two years.

Possible 3 It can occur within a 5-year strategic planning framework.

Unlikely 2 Not likely but may occur within a time horizon of 5 to 10 years.

Rare 1 Not expected to occur. The event would be a surprise. This event may only occur under extreme circumstances over a period of over 10 years.

Figure 17 Treatment Planning Form

In order to record risks and details on how to treat them, the following treatment plan can be used:

UNIT

DEPT/ SECTION

PROCESS/PROJECT

Created by : Date:

Revised by:

Date:

Risk

No. Entity Category

Business

Objective

Business

lever Risk Cause

Risk

description

Consequence

description Risk Owner

Existing

controls / risk

reduction

processes

Individual

Control

Operating

Effectiveness

Overall

Control

Design

Rating

Overall

Control

Effectiveness

Rating

Likelihood

Rating

Conseque

nce rating

Residual

Risk

Rating

Worst case

consequence

Speed

of

onset

Risk

Trend

Further

planned

remedi

ation

Remedia

tion

Target

Date

Responsi

ble

Person

Status

Comment

Last date

of

assessmen

t

Indicators

associated

with the

risk (also

causes and

potential

consequen

Critical /

Tolerance

threshold

Measure, or

where

measure

could be

referenced


RISK DESCRIPTION:

TASKS:

NECESSARY RESOURCES:

RESPONSIBILITY:

CALENDARIZATION:

REPORT:

Risk Mapping Example

In the example below, the risks were categorized into Governance, Strategy and Planning, Enablement,

Operational, Compliance and Reporting risks. The table below also shows the level of impact each of

these risks has, as exemplified by the different colors used:

Figure 18 Risk Mapping Impact Chart

III. Electrification Management Meetings

The SAEP team recommends that EMU establish with stakeholders and schedule a selective set of

electrification management meetings, categorized into two groups:

• Coordination and Decision Meetings - aim to facilitate coordination, alignment and shared

decision-making between the various areas involved in the planning and implementation of the

Electrification Program;


• Monitoring and Evaluation Meetings - are intended to ensure regular and systematic

follow-up of the execution of electrification processes, including project planning, financial and

procurement planning and execution, and project execution.

The following details the proposed meeting map.

Coordination and Decision Meetings

Objectives Participants Responsible Frequency

Electrification Management Meeting

• Enjoy and close the monthly management report.

• Agree and plan actions to improve the electrification and

risk mitigation program.

• Discuss draft Electrification Forecast Plan

• Discuss drafts of Financial and Procurement Plans

TEAM: EMU

DPSE, DES, DGD,

DAL, DPFO

Director EMU Monthly

EDM Electrification Committee

• Appreciate the Estimated Electrification Plans (issue

opinion to CA), Financial and Procurement

• Consider proposals for revising the Electrification,

Finance and Procurement Forecast Plan

• Consider proposals for electrification projects to be

submitted to the CA and the Electricity Committee. from

MIREME

• Appreciate the Global Electrification Risk Map and decide

mitigation actions to be proposed to the Board

Committee

Members

Invited Directors

Chairman of the

Board)

Quarterly

(extraordinary

if necessary)

Forecasting Cycle Meetings

• Assess progress of call planning process and information

quality of Delegations and DPSE DGD, DPSE, EMU

Portfolio Manager DGD

Monthly (from

August to

Dec.)



Project Managers

• Review of project status and results to produce

monthly management report

Notes: Individual meetings with each project manager;

EMU should gather information and analyse before

meetings to validate meetings with managers

Project Managers EMU Portfolio

Manager Monthly

Financial

Coordination and Decision

Meetings




• Update on the implementation of the Financial Plan of

... electrification and needs pipeline

• Update on project fundraising and allocation activities

DPFO EMU Portfolio

Manager Monthly

Procurement and Supplies

• Update of implementation of electrification

Procurement Plan and needs pipeline

• Update plans and decisions for centralized

procurement of materials and equipment.

DAL

DGD

EMU

Operations

Manager

Mensal

Project Planning

• Updating changes to the electrification project pipeline

and the status of each on-going opportunity DES, DPSE e DGD

EMU Planning &

Engineering Mensal

EMU Coordination

• State of play on the preparation of the Monthly

Electrification Management Report

• Discuss / review the work plan of each EMU area

(focus on improvement and risk management actions)

EMU Planning &

Engineering Mgr.

EMU Portfolio Mgr.

EMU Operations Mgr.

EMU Director Mensal


3. ELECTRIFICATION ARCHITECTURE

OVERVIEW The SAEP team organized electrification processes into an architecture consisting of four processes (PR), which

correspond to the process flow familiar to EDM in Figure 16 (next page). When reading this document on a

computer, SAEP recommends using the View toolbar > Navigation Pane to easily track one’s location in the

handbook(s).

For reference, Electrification Planning processes are in red, and Electrification Execution processes are

in blue. All three handbooks contain both planning and execution processes, so this color-coding scheme will remain

consistent throughout. Reference the follow architecture map (Figure 16) and responsibilities (table 4) to view all

processes at once. Following this color-coding scheme, the breadcrumb circle fill-color in the top right also match

the respective process type.

Planning Processes (left half of figure below) - include detailed mapping information, process descriptions, and

support tools for electrification planning activities, whether in connection planning, project design and engineering,

or financial planning and procurement planning.

Execution Processes (right half of figure below) - related to electrification project execution activities,

connection promotion, financial and procurement management, supply of materials and equipment.

Handbook A - Electrification Processes

Handbook B - Financial Processes

Handbook C - Procurement Processes

The figure below shows the architecture of the electrification processes and illustrates the organization’s model and

the relationship between the processes related to electrification.


Figure 19. Architecture of electrification-related processes (designed by SAEP and EDM teams)


Electrification Processes (Planning and Execution)

Each process (abbreviated PR) in this section is described in terms of:

• Purpose and responsibility (objectives, importance factors and responsible area);

• Process description and flow charts (management and control information);

• Support tools and procedures (tools that regulate the process);

• Potential risks and mitigation

The following table outlines the interdepartmental responsibilities of the EMU management and coordination team

in the electrification processes. Note only highlighted rows are contained in this handbook A.

Table 4 Responsibilities for electrification processes (highlighted rows included in this handbook)

Section # Abb. – Electrification Processes Responsi

ble area Participating areas

EMU

Manager

Planning and Engineering (P&E) processes (PR)

Handbook A

Section 4.1 PR-P&E.1 - Forecast Planning of Electrification DGD Delegations, DPSE GPE

Handbook A

Section 4.2 PR-P&E.2 - Electrical System Availability Analysis DPSE DGD, DES, DGT GPE

Handbook A

Section 4.3 PR-P&E.3 - Revision of the Forecast Electrification Plan DGD Delegations, DPSE, DES GPE

Handbook A

Section 4.4

PR-P&E.4 - Prioritization and Scheduling of Electrification

Projects and Resources DES

DGD, Delegations,

DPSE, DPFO, DAL

GPE &

GPPR

Handbook B PR-P&E.5 - Preparation of the Financial Forecast Plan DPFO DPSE, DGD, DES GPPR

Handbook B PR-P&E.6 - Fundraising and Allocation to Projects DPFO DPSE, DGD, DES GPPR

Handbook B PR-P&E.7 - Financial Plan Review DPFO DPSE, DGD, DES GPPR

Handbook C

PR-P&E.8 - Preparation and Updating Procurement Plan

Note this section is divided into A1(centrally managed projects)

and A2 (Delegation managed projects)

DAL DPSE, DGD, Delegations GPPR

Handbook C PR-P&E.9 - Procurement Plan Review DAL DPSE, DGD GPPR

Execution (EXE) processes (PR)

Handbook A

Section 4.5

PR-EXE.1 - Management of Electrification Projects and

Connection Auditing DES DGD, Delegations, DPSE GOPL

Handbook A

Section 4.6

PR-EXE.2 - Monitoring of Delegation Electrification

Activities DGD Delegations, DPSE GOPL

Handbook A

Section 4.7

PR-EXE.3 - Promotion of Connections and

Community Relations DGD Delegations GOPL

Execution Processes: Financial and Budget Management (GFO) processes (PR)

Handbook B PR-GFO.1 - Economic and Financial Impact and

Sustainability Analysis DPFO DPSE, DGD, DES GPPR

Handbook B PR-GFO.2 - Management of Project Financial Execution Treasury DPFO, DES GPPR

Execution Processes: Procurement and Logistic Management (P&L) processes (PR)

Handbook C PR-P&L.1 - Project Procurement Execution Monitoring DAL DES, DGD, Treasury GPPR

Handbook C PR-P&L.2 - Monitoring of Project Contract Execution DAL DES, DGD GPPR


Section 4: Electrification Planning and Execution


4. ELECTRIFICATION PLANNING AND

EXECUTION

4.1 Forecast Planning of Electrification (PR-P&E.1)

Forecast planning is a process that aims at providing a forecast electrification plan, serving as a basis for

the remaining planning processes. And it should be implemented during the preparation period of the

preparation of the EDM Activity and Budget Plan (PAO) to serve as a basis for setting the targets and

electrification activities of delegations and projects. This plan should be prepared annually, with a forecast

covering of a period of three years.

For more information on the process, refer to Annex 1: Processes and Tools Expanded (PR-P&E.1)

PURPOSE AND RESPONSIBILITY

The process aims to systematize the planning and data collection for new connections as well as to provide

a medium-term forecast plan to achieve the electrification targets outlined in the National Electrification

Strategy. This plan should be reviewed quarterly and implemented annually with a three-year time horizon.

The plan will be consolidated, reviewed, and controlled by the General Directorate for Distribution, and

the Delegations and System Planning and Engineering Directorate (DPSE) should elaborate and provide

inputs to the plan.

The importance and relevance of this process for electrification lies in the following factors: • Provide a guiding plan for EDM based on medium term planning.

• Ensure better articulation with the Ministry of Energy and Mining Resources (MIREME) and FUNAE;

• Provide an indication of areas to be electrified, potential connections to be made, materials and equipment

required as well as financial investment required to achieve the electrification objectives.

Responsible Area: General Directorate for Distribution (DGD)

Participating Critical Areas: Delegations, DPSE

EMU Manager Responsible for work supervision and control: GPE


PROCESS STRUCTURE

Main Activities and Outputs: • DPSE articulates with MIREME and FUNAE Planning Departments for alignment and information exchange.

• The Directorate General for Distribution together with the Regional Directorates initially prioritizes the areas

to be electrified based on the national electrification strategy;

• Delegations in coordination with the Systems Planning and Engineering Directorate and the General Directorate

of Distribution and Regional Directorates map out the areas and potential connections.

• Delegations perform operational diagnostics of the network segment that will be connected to potential clients.

• The Systems planning and Engineering Directorate should consolidate the provisional electrification plan.

Flow of Decisions and Approvals: • Delegates from each Delegation submit the repetitive Regional Directorates the survey data as well as their

schedule for validation and approval;

• Regional Directors approve each delegation's forecast plan and submit to the General Directorate of

Distribution;

• The Statistics Department of the Directorate General for Distribution receives the data from the regional

directorates’ reviews and approves the data;

• EDM Electrification Committee validates and approves the draft of the provisional electrification plan;

• The Board of Directors approves the provisional electrification plan.

Internal Controls to Perform in the Process: • The Planning Systems and Engineering Directorate should ensure that EDM electrification areas do not coincide

with FUNAE electrification areas before providing guidelines to the Province delegations (the local commercial

and technical organizational structures have to perform field surveys to collect data about target areas for future

connections, estimate the potential connections to be done and also assess the required investments on the

network).

• The Planning Systems and Engineering Directorate should implement the Media Tension system capacity check

process to indicate how many new customers the system can accommodate for each substation.

• The Delegation's Technical Commercial Sector should select a sample of 10% of the number of surveys

submitted by community/area leaders to verify on the field the accuracy of the data before drawing up the

delegation's forecast plan. (Note: often the Delegations collect information from the Community leaders. In

these cases, the Delegation must implement a verification routine of the accuracy of that data, at least for a

sample if it cannot verify all areas surveyed. As the Delegations do not have cartographic maps, they have to rely

on paper documents of the communities and on using paper templates where the Delegation register all

connections surveyed in each area. This template was designed by the Electrification Team.)

• The Delegation Maintenance and Operations Sector should ensure that a diagnostic of the low voltage grid

segment is executed during the survey of materials required to provide electricity to a target area and to do a

set of potential new connections. The objective is to ensure a control to be executed by the Maintenance and

Operations Sector prior to the Delegation commercial sector submitting the connections plan, in order to

verify that an analysis to the capacity of the network was performed to the areas where there are plans to

expand connections.


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Inconsistency in surveying potential connections that could cause

poor project structuring and resource allocation by contractors, as well as

poor financial allocation and prioritization of areas.

Mitigation: Strengthen control and verification of routines to gather

information

☒ ☒ ☐

Risk 2: Lose credibility with funders and cooperating partners for lack of a

consistent and well-grounded electrification plan.

Mitigation: Improve the quality of information by implementing information

audits and maintaining evidence for these audits.

☒ ☐ ☒

4.2 Electrical System Availability Analysis (PR-P&E.2)

The analysis of the availability of the electrical system aims to verify the behavior of the electrical system

in the face of the addition of system load by potential new connections in order to avoid bottleneck nodes

in the network that limit the power flow and reduce the quality of service of the network to EDM

customers originated by the electrification program. Hence, this process will ensure that the technical

risks of electrification expansion defined/planned in the previous process are systematically addressed by

all Delegations.

The process will recommend grid interventions to achieve the capacity to accommodate more grid load

while maintaining voltage and frequency levels stable and within the tolerances allowed in the Network

Code (Ministerial Diploma of 27 August 2014).

TOOLS AND SUPPORT PROCEDURES

Procedures / rules / systems to apply: • For the diagnosis of the network for new connections, the following diagnostic dimensions must be observed: 1)

Transformation Station Diagnostics to supply the potential connections; 2) Diagnostics of the electronic circuit;

3) Inspection of existing circuit and 4) Occurrences verified in the circuit.

• To systematize data collection for diagnosis, the Delegation Maintenance and Operations Sector should use the

following tools:

o Diagnosis of Load Capacity at Transformation Station

o Circuit Diagnostics and Inspection

• The survey of potential connections should ensure the distinction between potential connections in their

Mandatory Service Zone (MSZ) and potential connections in Non-Mandatory Service Zone (Non-MSZ).

• For the survey of potential connections, two tools will be used, one to make available to local authorities to fill

in and another to be consolidated by Delegations and Regional Directorates:

o The survey of potential connections and investments needed

o The survey of potential connections by areas

POTENTIAL RISKS AND THEIR MITIGATION


The previous section refers to implementation of an electrification planning process, and there are a few

technical issues listed there, but this section addresses the technical elements of the planning and

forecast of electrification.



The process aims to verify the technical capacity of the High to Medium Voltage electrical system to support

new intended connections and recommends solutions to be adopted to avoid constraints on the Medium

Voltage network.

The importance and relevance of this process for electrification lies in the following factors:

• The process allows you to plan maintenance work on the electrical system to accommodate the

number of new connections proposed by the electrification program.

• Reduces the cost of corrective maintenance on electrical systems due to the exponential increase in

network load without impact analysis.

• Feeds new wiring planning processes to avoid disturbing normal behavior of the electrical system.

Responsible Area: Planning Systems and Engineering Directorate (DPSE)

Participating Critical Areas: DGD, DES, DGT


PROCESS STRUCTURE

Main Activities and Outputs: • The Systems Planning and Engineering Department shall, together with the Distribution Department, define the

assumptions and principles of the analysis;

• The Systems Planning and Engineering Directorate in conjunction with the System Operator Directorate shall

update the system model with new equipment installed in the high voltage medium voltage network and

technical parameters;

• The Systems Planning and Engineering Directorate should simulate the charge flow with the anticipated

additional loads in the electrical system and identify solutions to the detected problems.

Flow of Decisions and Approvals: • The Systems Planning and Engineering Directorate should define together with the General Distribution

Directorate the amount of new connections that will correspond to the amount of additional load for each

substation.

Internal Controls to Perform in the Process: • It must be ensured that during the assumptions and principles definition phase the Systems Planning and

Engineering Directorate will be responsible for setting the maximum load per connection and the period of

system analysis (the period the system will be analyzed, for example, from 6pm to 11pm on week days and 2pm

to 12am on the weekend. This is to ensure consistency of results).


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Load flow simulation with the outdated data model of the electrical

system that could result in recommendations of solutions that even applied

will not solve network bottleneck node problems and reduce the power

quality supplied to new and old customers.

Mitigation: Establish monthly technical meetings to inform about operating

status and evaluate/scheduled system interventions.

☒ ☐ ☐

Risk 2: Risk of creating choke nodes in the grid during the execution of

electrification projects, which may require misappropriation of financing for

corrective maintenance and reprogramming of projects.

Mitigation: Introduce quarterly system power flow verification and analysis

routines to monitor flows and anticipate bottlenecks

☐ ☒ ☒

4.3 Revision of the Forecast Electrification Plan (PR-P&E.3)

This process consists of reviewing the forecast electrification plan, accounts for changes in processes or

in the execution of activities such as changes in targets, unexpected growth in demand, change of priorities,

unavailability of material or financial resources, or contractor inefficiency. It is recommended that the

forecast plan should be reviewed quarterly.


SUPPORT TOOLS AND PROCEDURES

Procedures / rules / systems to apply:

• Electrical system modeling and load flow simulations will be performed in the Power System Simulator for

Engineering (PSSE) system.

• The availability of capacity for new substation connections should be recorded in a tool.

o System Availability Indication Map - FPE-05

POTENTIAL RISKS AND ITS MITIGATION



The process aims to update the provisional electrification plan in accordance with the activities and projects

approved in the Activity and Budget Plan and also projects planned or being implemented, and to define

intervention measures and phase recommendations for deviations in the structuring and implementation of

activities and projects with regards to the forecast plan.

The importance and relevance of this process for electrification lies in the following factors: • Revision of the electrification forecast plan.

• Monitoring the implementation of the provisional Electrification plan.

Responsible area: General Directorate of Distribution

Participating Critical Areas: Delegation, DPSE, DES


PROCESS STRUCTURE

Main Activities and Outputs: • DGD articulates with DES and Delegations to learn about the progress of electrification activities and

structured and ongoing projects.

• DGD in coordination with the DAL, Delegations, DPSE and DES identify deviations from the forecast plan in the

current year.

• DGD in coordination with DAL, Delegations, DPSE and DES draws up a list of recommendations to address the

problems that caused deviations from the forward electrification plan.

• DGD updates the forward electrification plan

Flow of Decisions and Approvals: • DGD submits to EDM Electrification Committee for validation of draft plan rectifications

• EDM Electrification Committee validates and approves revisions to the draft electrification plan;

• The Board of Directors approves the revision of the provisional electrification plan;

Internal Controls to Perform in the Process: • The Electrification Committee should validate the outputs developed by DGD to identify possible points for

improvement.


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Downgrading of the electrification forecasting plan, which may lead

to lack of credibility in seeking funding for project implementation and

inefficient project structuring

Mitigation: General Distribution Directorate should strengthen

information verification routines and control of planning processes

☒ ☐ ☒

4.4 Prioritization and Scheduling of Electrification Projects and

Resources (PR-P&E.4)

In this process, electrification project initiatives are identified based on the forecast electrification plan and

are ranked according to government guidelines, and technical or financial availability. The process steps

begin with project design, validation, and approval by EDM, and ends with the preparation of a project

plan.



Procedures / rules / systems to apply: • For the diagnosis of the network for new connections, the following diagnostic dimensions must be observed: 1)

Transformation Station Diagnostics to supply the potential connections; 2) Diagnostics of the electronic circuit;

3) Inspection of existing circuit and 4) Occurrences verified in the circuit.


following tools:


o Circuit Diagnostics and Inspection

• The survey of potential connections should ensure the distinction between potential connections in their

Mandatory Service Zone (MSZ) and potential connections in Non-Mandatory Service Zone (Non-MSZ).

• For the survey of potential connections, two tools will be used, one to make available to local authorities to fill

in and another to be consolidated by Delegations and Regional Directorates:

o The survey of potential connections and investments needed

o The survey of potential connections by areas




The process aims to structure electrification projects so that the correct configuration of the projects is

ensured and provides an overview of all processes from the design phase through to the implementation

phase.

The importance and relevance of this process for electrification lies in the following factors: • Ensures projects are developed following National Electrification Strategy guidelines

• Provides EDM with a set of duly substantiated projects for funding request and submission to the Electrification

Account

Responsible area: Social Energy Directorate (DES)

Participating Critical Areas: Delegações, DPSE

EMU Manager Responsible for work supervision and control: GPE, GPPR

PROCESS STRUCTURE

Main Activities and Outputs: • The Systems Planning and Engineering Directorate designs the projects, creating a list of project proposals

indicating the priority projects;

• The Social Energy Directorate reviews the listing and priorities defined based on the National Electrification

Strategy;

• The Systems Planning and Engineering Directorate together with the Financial Modeling Directorate perform

the economic and financial impact assessment of each project proposal;

• The Social Energy Department creates the Project Fact Sheet;

• The Systems Planning and Engineering Department prepares the Project Document;

• The Social Energy Directorate together with the Financial Modeling and Budget Directorate seek funding for the

project;

• The Systems Planning and Engineering Directorate is responsible for conducting the feasibility study;

Flow of Decisions and Approvals: • The Systems Planning and Engineering Directorate submits to the EDM Electrification Committee project

proposals for the decision of which projects will be prepared and which ones will not progress;

• EDM Electrification Committee approves Project Document

• The Administrator of the Social Energy Directorate approves the Project Document

Internal Controls to Perform in the Process: • Project design should prioritize projects according to the characteristics of the areas to be electrified, the

existing electrical system and population density, according to the National Electrification Strategy. This control

is the responsibility of the Systems Planning and Engineering Directorate.

• Ensure that an economic and financial impact assessment of the projects is carried out before being approved by

the Systems Planning and Engineering Directorate and the Financial Modeling and Budget Directorate.


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Failure to approve electrification projects by the MIREME

Electrification Committee because they do not follow the prioritization

principles of the National Electrification Strategy.

Mitigation: Conduct engagement meetings with stakeholders as MIREME

and FUNAE early to validate the prioritization processes before the planning

process star and document the prioritization procedures to ensure clear

alignment between all stakeholders.

☒ ☐ ☐

TOOLS AND SUPPORT PROCEDURES

Procedures / rules / systems to apply: • The “FPE-06 Proposal Design Monitoring” tool is used for initial project data recording and should be applied

when setting up a project.

• The “Project Fact Sheet - FPE-07” tool is used to register projects that pass the first prioritization phase before

preparing the Project Document.



Divider here

Section 4: Electrification Planning and Execution


4.5 Management of Electrification Projects and Connections Auditing

(PR-EXE.1)

This process ensures the execution of electrification projects carried out by the central area, with external

funds as well as the audit of new connections.

For more information on the process, refer to Annex 1: Processes and Tools Expanded (PR-EXE.1)


The process aims to systematize the execution of electrification projects and to ensure that you have an

overview of all phases of an electrification project.


• Contract implementation and construction management

• Ensures audit of new connections

Responsible area: Social Energy Directorate (PIU - Project Implementation Unit) and EMU

Participating Critical Areas: DGD, Delegations, DPSE

EMU Manager Responsible for work supervision and control: GOPL


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Delays in project implementation due to lack of clear

implementation procedures, establishment of appropriate communication

channels, stakeholder engagement and lack of supervision and monitoring

of the work.

☒ ☒ ☐

PROCESS STRUCTURE

Main Activities and Outputs:

• The Project Implementation Unit prepares the project activity matrix

• Project Implementation Unit in conjunction with consultants (if required) prepare all necessary documents for

hiring consulting, non-consulting, works and property services.

• Consultant prepares monthly project progress reports, measurement records and Correction Lists

• Contractor is responsible for monthly infrastructure implementation, power outage plan and progress reports

• Consultant prepares survey report with detailed description of survey findings and remains

• Contractor collects all new customer information to be registered in EDM systems

• Commercial technical sector is responsible for recording data in EDM commercial and geo-referencing systems

Flow of Decisions and Approvals:

• PIU's organic structure must be approved by EDM's Board of Directors

• The business matrix that includes the Procurement plan and all procurement documents must be submitted by

PIU to the Electrification Program financiers for approval;

• Measurement notices, progress reports prepared by the contractor shall be validated by the Local Supervisor

and approved by the consultant before being submitted for final approval by PIU;

• The Power Outage Plan must be approved by the consultant, Delegation and PIU prior to implementation;

• The Survey Report resulting from commissioning must be approved by the consultant before being submitted

for final approval by PIU;

Internal Controls to Perform in the Process:

• Local and regional supervisors should validate all progress reports prepared by the contractor and hold regular

on-site meetings.

• Monitoring the consumption behavior of new customers to detect signs of fraud;

• EMU should audit data collected and 10% of new customers per lot delivered by contractors, to be done by

external supervisory consultants or by the Delegations.



The “Work Lot Execution Monitoring - FOP-01” tool should be applied to capture project execution management data.



Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Mitigation: Strengthen communication between managers and

contractors, require progress reports, and establish checkpoints for

interdependent and critical activities.

Risk 2: Fraud in customer connections due to lack of proper audit and

oversight in customer registration in EDM systems

Mitigation: Involve the community leaders in the electrification process,

so that they can influence the new customers to avoid fraud. And

EDM/Delegations must regularly analyse acquisitions of energy to detect

potential fraud connections and inspect the suspicious ones among the

prepaid meters installed in the Electrification Program.

☒ ☒ ☐

4.6 Monitoring of Delegation Electrification Activities (PR-EXE.2)

This process tracks implementation of electrification to ensure accountability and alert managers to

potential problems. The support tool will allow for the assessment and verification of possible deviations

from the approved plan in terms of activities, and if deemed appropriate, adjustment measures will be

taken.



The process aims to systematize the monitoring of electrification activities carried out by delegations.


• Monthly monitoring of the electrification works implemented by the delegation;

• Obtaining data systematically to report to Government of Mozambique and others interested.

Area responsible: Delegations (and DGD)

Participating Critical Areas: Delegations, DPSE



Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Lack of visibility of delays in Procurement activities, execution of

work that may impact new call numbers

Mitigation: Monitor Material Delivery

☒ ☒ ☐

Risk 2: Lack of technical resources to execute electrification activities and

financial resources to hire contractors

Mitigation: To include all electrification activities to be carried out by the

Delegations in the Forecast Electrification Plan

☒ ☐ ☐

PROCESS STRUCTURE


• The Delegation identifies a multidisciplinary team to carry out the electrification activity.

• Selected Team conducts area visit and diagnoses existing network to identify possible reinforcements needed to

network.

• Delegation Team surveys investment needs and prepares worksheet

• The Maintenance and Operations Sector diagnoses the existing network that will be connected to the new

infrastructure.

• The Delegation Team implements the Work

• Commercial Technical Sector registers new clients


• The Directorate General for Distribution and Regional Directorates approve the worksheet submitted by

Delegations before being implemented.


• The EMU must collect data of electrification activities and connections implemented on a monthly basis using

the management templates designed. And also cross check the data provided by the delegations with the data

extracted in the commercial systems.

• The information provided by delegation should be sign of by the regional director of the delegation and cross

checked with the data extracted in the system.



• The FOP-02 Delegation Activity Tracking tool should be used on a monthly basis to collect progress on

electrification works as well as new connections implemented.


following tools:


o Circuit Diagnosis and Inspection



Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 3: Insufficient project management capabilities as electrification has

been mostly been done through turnkey projects centrally managed, not by

the Delegations

Mitigation: Carry out an accurate diagnosis and assessment of the needs

for project management qualified resources in all Delegations

☒ ☒ ☐

4.7 Promotion of Connections and Community Relations (PR-EXE.3)

The process contributes to effective communication with the communities covered by the electrification

activities and ensures engagement and collaboration with the electrification committees in the

implementation of connection campaigns.



The process is intended to involve members of the community covered by the electrification activities in

the process and to ensure that they have a single message regarding the Energia para Todos program.


• Collaborate with the community in a way that contributes to raising potential connections and

awareness regarding energy care;

• Creates a community communication channel through community leaders and energy committees.

Area responsible: Delegations (and DGD)

Participating Critical Areas: Delegations


PROCESS STRUCTURE


• The Delegation identifies areas that are covered by the electrification program, as well as the communities and

their leaders;

• The Delegation defines EDM focal points to be responsible for the relationship with the community;

• Delegations run call promotion campaigns and establish electrification committees.


• All “Energia para Todos” dissemination material must be approved by the Social Energy Directorate.


• Community relations focal points should be capable of resolving conflicts, aligning expectations, as well as having

all the information about the Energy Program for all.


Impact Aspects

Effectiveness /

Results

Efficiency /

Execution

Financial /

Sustainability

Risk 1: Discontent and lack of cooperation of communities covered by the

electrification program, caused by lack of communication and alignment of

expectations.

Mitigation; Establish monthly community meetings to provide information

and obtain inputs to improve the service

☒ ☐ ☐



• No tools and systems to apply.



5. ANNEXES

Annex 1: Processes and Tools Expanded

PR-P&E.1 - Forecast Planning of Electrification

I. General characterization of the process

Process Forecast Planning of Electrification Reference PR-P&E.1

Electrification Macro-process

Operational Planning Process for Electrification Execution Frequency

Annual

Objectives and Outcomes

Objectives:

- Establish a systematic procedure for annual electrification planning;

- Ensure coordination between FUNAE, MIREME, the Directorate-General for Distribution (DGD), Regional

Directorates, Delegations, and the Systems Planning and Engineering Directorate (DPSE) during the planning

process.;

- Ensure that the annual electrification plans incorporated in the Activities and Budget Plan (PAO) are based on

accurate data and collected by the delegations.

- Provide EDM with a plan that it can present to donors, government and other entities to secure funding to

materialize new connections.

Outcomes:

- Indication of neighborhoods, villages, and towns to be electrified over the next three years and the total

potential new connections for each area.

- Indication of a preliminary electrification program for the next three years.

- Indication of the investment amount needed to reach the goals in the next 3 years.

All entities responsible

for the process

Representative Unit DPSE, DES, Delegations, FUNAE and MIREME

Responsible Unit DGD


II. Process Mapping

II Process Mapping

Purpose of the section is to identify the following steps of doing a forecast.

II-1. Flow Chart

see Annex 2 for full page view

II-2. Activity Flow

Execution

time

Responsible for executing and Areas

to involve

1st Step: Data preparation

1.1. Coordination with MIREME and FUNAE 5 days

Responsible: DPSE

Areas to involve: FUNAE Planning Department; MIREME Planning and

Cooperation Department

Description of the action: DPSE will organize working sessions with FUNAE and MIREME to:

- Review previous electrification plans within the National Electricity Grid (REN – Rede Eléctrica Nacional) and outside REN;

- Indicate and review overall connection goals;

- Define and review the priorities of electrification areas in the country.

Specific outputs: Memorandum or meeting minutes with:

- Indication of areas to be electrified with off-grid and on-grid technologies;

- Electrification plans covering the next three years;

- Overall preliminary electrification targets over the next three years;

1.2. Preparation information guidelines for the Delegations

regarding planning 5 days

Responsible: DPSE

Areas to involve: DGD, DRCM, DRPM, DRS, DRC, DRN

Description of the action: The DPSE, in joint working sessions with the DGD and Regional Directorates will define the assumptions,

principles, objectives and guidelines for identifying potential connections that could be electrified over the next three years.

- Agree on data collection procedure for new connections;

- Agree on the selection of survey areas for each delegation;

- Agree on the objectives for identifying new connections based on the availability of the electrical system and the overall goals;


- Indicate the focal points for each delegation and the person responsible for managing the process.

Note: The availability of the electrical system is verified in process PR-P&E.2 – Analysis of the Availability of the Electrical System described in chapter 3.2

Specific outputs: Circulate the following guidelines within the delegations:

- Indication of the guiding objectives for the identification of potential connections;

- Indication of the areas to be covered by off-grid projects;

- Indication of procedures and rules for the identification of new connections;

- Indication of each delegation's focal points for the identification of new connections;

2nd Step: Analysis and Planning

2.1. Prioritization of electrification areas 10 days

Responsible: DGD

Areas to involve: DRCM, DRPM, DRS,

DRC, DRN and the Delegations (23)

Description of the action: The DGD, in coordination with regional directorates and delegations, will define the areas that will be

covered by the identification of potential connections based on the following criteria, drawn from the 2018 National Electrification Strategy,

namely:

- Highly populated urban areas with high-demand, where revenues from connections can justify capital investment and where Medium

Voltage systems already exist and have capacity;

- Highly populated urban areas with low-demand where Medium Voltage systems already exist and have capacity;

- Highly populated rural areas without Medium Voltage systems.

Specific outputs: Map of neighborhoods, villages and towns per delegation that will be covered by the connection identification activities in order of delegation and priority.

2.2. Area mapping and potential connections 60 days Responsible: Delegations

Areas to involve: DPSE and DGD

Description of the action: The delegations should work closely with neighborhood communities, local authorities, municipalities, administrative posts and district administration in identifying potential connections to facilitate data collection and identification of potential connections.

Record information in Identification of Potential Connections and Necessary Investments Sheets - FPE03 for each delegation with indication of potential connections located within 100 meters of the main low voltage line as indicated in the 2018 Electrification Strategy.

Specific outputs: Number of potential connections and need for Necessary Investments – in FPE03 Sheet

2.3. Diagnostic of the grid segment for potential connections 60 days Responsible: Delegations

Areas to involve: DPSE and DGD

Description of the action: Delegations must verify the physical and technical conditions of the grid where potential connections will be established, and indicate the need for intervention materials for repair, reinforcement or rehabilitation of the grid. The following diagnostic information should be registered in the FPE02 Grid diagnostic sheet:

- Physical condition of the identified segment, observing the condition of the poles and cables of the circuit where potential consumers

will be connected.

- Number of cuts in the low voltage grid.

- Voltage level at each low-voltage output at peak time to verify if the range of variation is within the allowed limits of 220V ±5% as per

the Grid Code.

- Transformers charge level if greater than 100% of rated power during peak hours.

Where requested, the diagnosis should propose grid interventions indicating the amount of Medium Voltage and Low Voltage power lines required, the number of Transformer Stations, and the power supply substation.

Preliminary scheduling of new connections should be made for the coming years based on the results of the survey.

Specific output: Consolidated Investment requirements including reinforcement areas

2.4. Review, approval and proposal consolidation from

consolidation area and potential connections 15 days

Responsible: DGD

Areas to involve: DRCM, DRPM, DRS, DRN, DRC Delegations

Description of the action: The DGD, in coordination with Regional Directorates and Delegations, should review the information contained in the survey tool for Potential Connections and Investment Requirements - FPE03 to:

- Confirm if the data presented is aligned with the defined objectives, assumptions and principles.


- Validate the scheduling of the forecast electrification area plans per delegation.

- Audit sample data provided by Delegations and Regional Directorates.

If any irregularity is detected, it will be referred to the Delegation for review, and once revised and validated, it will be forwarded to the

DPSE for consolidation of the Forecast Plan.

Specific outputs: Consolidated map of potential connections and investment requirements filled in by the delegations and regional directorates. (Potential Connections Survey and Investment Requirement – FPE03)

2.5. Analysis and consolidation of the forecast electrification plan 15 days Responsible: DPSE

Areas to involve: DGD, DES

Description of the action: The DPSE, in coordination with DGD and DES, should:

- Organize the report with framework and contextualization content.

- Incorporate data from the medium voltage grid availability analysis, and the load demand of the potential connections identified by the

delegations for the next 3 years. (See Electrical System Availability Process)

- Incorporate DES and FUNAE electrification plans.

The DPSE should submit the draft of the Forecast Electrification Plan to the EMU for validation and approval

Specific outputs: Draft of the Forecast Electrification Plan for the next 3 years (2020 to 2022)

3rd Step: Consolidation and approval

3.1. Validation of the Forecast Electrification plan draft 3 days

Responsible: EDM Electrification Committee

Areas to involve: DPSE, DGD, DGC, DAL, DEF, DES

Description of the action: The Committee will verify the consistency and alignment of the plan with the National Electrification Strategy and budget plans for the next 3 years.

In case the committee submits comments to be addressed, these must be submitted to the EMU, which will then be responsible for

submitting them to the DPSE

Specific outputs: Reviewed Draft of the Forecast Electrification Plan for the next 3 years (2020 to 2022)

3.2. Plan Review, and addressing of comments and observations 5 days

Responsible: DPSE

Areas to involve: DGD, DRCM, DRPM, DRC, DRS, DRN, Delegations

Description of the action: The DPSE will make corrections to the plan based on comments from the EDM Electrification Committee and the EMU if necessary. This plan must then be submitted to EMU once again

Specific outputs: Revised draft of the next 3 years electrification forecast plan

3.3. Approval of the 3-year forecast electrification plan (2020 to

2022) 5 days

Responsible: Administration

Areas to involve: EDM Electrification Committee

Description of the action: The Board of Directors shall consider the Forecast Electrification plan and approve or submit for review considering comments. Once the plan is approved, it should be forwarded to DGD, DES, DPSE and other entities.

Specific outputs: Approved Forecast Electrification Plan for the next 3 years (2020 to 2022).


III. Tools

Tool # Tool Name Description/Purpose

FPE01 Load Capacity Diagnosis at Transformer Post

This template will be used by delegations to conduct a diagnosis of the transformer post that will fuel potential connections to verify the potential capacity available for adding new consumers.

FPE02 Circuit Diagnosis and Inspection

This template will be used by delegations to diagnose and inspect the grid circuit that will be connected to the potential connections in order to identify circuits that need reinforcement and lines that need intervention.

FPE03 Identification of Potential Connections and Investment Requirements

This template will be used by regional delegations and Departments to consolidate data collected by community leaders and local authorities.

FPE04 Identification of Potential Connections per Area

This map will be provided to local authorities to collect data on potential connections per neighborhood, town and village.

IV. Applicable Rules and Procedures

No Description of procedures/norms/regulations to be applied in the process

1 Electricity Law - Law 21/97 of the 1st of October - Defines the legal provisions for the Production, Transport, Distribution and Trading of electric Power.

2 Master Plan for System Integration, 2017 - Formulates the 25-year development vision for the Generation, Transport and Distribution electrical systems.

3 Decree No. 67/2011 of the 21st of December - Safety Regulation for Low Voltage Electricity Distribution Grids

4 Decree 42/2005 of 29th of November - Establishes rules for the Planning, Financing, Construction, Ownership, Maintenance and Operation of installations for Electricity Transport, Distribution, and Trading as well as rules and procedures related to the management, operation and development National Grid’s comprehensive grid

5 Decree 48/2007 of 22nd of October - Regulation of Electrical Installation Permits

6 National Electrification Strategy for 2018-2030 - Mechanism that sets out the vision for achieving the goal of universal access to electricity by 2030.

V. Potential Risks and their Mitigation

No Risk Mitigation Responsible

& Support

1

Inconsistency in surveying potential connections that could cause

poor project structuring and resource allocation by contractors, as well as poor financial allocation and prioritization of areas.

Strengthen control and verification of routines to gather information

R: GPE

S: DGD/ Planning

2 Lose credibility with funders and cooperating partners for lack of a consistent and well-grounded electrification plan.

Improve the quality of information by implementing information audits and maintaining evidence for these

audits.

R: GPE

S: DGD/ Planning


Tool FPE01- Load Capacity Diagnosis at Transformer Post

This template will be used by delegations to conduct a diagnosis of the transformer posts that will

enable potential connections in order to verify the available power capacity for adding new consumers.

Tool FPE02 - Diagnosis and Circuit Inspection

This map will be used by delegations to carry out the diagnosis and inspection of the grid circuit that

needs reinforcement.


Cont.


Tool FPE03 - Identification of Potential Connections and Investment Requirements

This map will be used by the delegations to consolidate the data provided by local authorities regarding

potential connections per neighborhood, town and village.

Cont.


Tool FPE04 - Identification of Potential Connections per Area

This template will be provided to local authorities for data collection on potential connections per

neighborhood, town and village.

PR-P&E.2 - Electrical System Availability Analysis


Process Electrical system availability analysis Reference PR-P&E.2

Electrification Macro Process

Operational Planning Process for Electrification Execution Frequency

Biannually


Objectives:

- Verify the technical capability of the systems to support new connections

Outcomes:

- Relation between electrical systems and available capacity

All entities responsible for the process

Executing Unit DPSE

Responsible Unit DGD, System Operator Directorate, DES, DGT

II. Process Mapping

II-1. Flow chart


see annex 2 for full page view

II-2. Activity Flow

Execution time

Responsible for executing and Areas to involve

1st Step: Definition of Assumptions and Data Collection

1.1. Definition of assumptions and principles for analyses 1 day Responsible: DPSE

Areas to involve: DGD

Description of the action: The DPSE, in coordination with the DGD and based on guiding documents such as the Master Plan, the Electrification Strategy and the Forecast Electrification Plan, should define the principles and assumptions for conducting the analysis of the

availability of the system to accommodate potential connections.

The assumptions should contain the following data:

- Estimated power per consumer, considering that the National Energy Strategy indicates an interval of 0.6KVA and 3.3KVA for domestic

consumers for the rural area and urban and peri-urban areas respectively

- Estimated growth of aggregated load for each area over a 3-year period

- Information from the Delegations or Investment Promotion Center about possible large clients expected to arise in the area during the

analysis period

Specific outputs: Meeting minutes with the defined analysis assumptions.

1.2. Data collection and preparation of calculation parameters 15 days

Responsible: DPSE

Areas to involve: System Operator Directorate

Description of the action: DPSE should obtain updated technical parameter data to update the system model in the PSSE program. This data may be acquired in the Systems Operations Directorates, the North/Center/South Transportation Directorates and Generation Units, and Market Operator Directorate.

This exercise should:

- Obtain information that is not included in the model regarding new equipment installed in the system by the System Operator Directorate;

- Obtain substation loads (daily profiles and peak hour loads) from the System Operator Directorate;

- Obtain data about expected clients to be installed during the reporting period from the Delegations or Large Client Investment Promotion

Center;

- Obtain information about production or energy transmission capacity expansion plans;

- Obtain energy exchange plans with neighboring countries;

- Obtain data about new connections expected for the period under analysis.

Specific outputs: Report with technical information to be used for power flow analysis.

2nd Step: Load Flow Analysis

2.1. Update the system model 10 days Responsible: DPSE

Areas to involve: No need to involve areas

Description of the action: DPSE shall update the system model using the PSSE application to enable simulations.


This update will require:

- Conversion of the connection potential of delegations into load in the substations;

- Update the system model with the technical parameters of the new equipment.

Specific outputs: Electrical system model updated in the PSSE.

2.2. Load Flow Analysis 5 days

Responsible: DPSE

Areas to involve: No need to involve departments

Description of the action: DPSE shall perform simulations on the PSSE model and conduct a load flow analysis and electrical system

diagnosis to identify system bottlenecks and available capacity.

DPSE, in coordination with the DGD should calculate the number of potential connections, based on the relationship between the available capacity and the estimated power of each rural or urban consumer as indicated by the DGD or by the National Electrification Strategy.

Specific outputs:

- Report with grid constraints and available capacity per substation to accommodate new connections.

III. Tools

Tool # Designation Description/Purpose

PSSE PSSE Power System Simulator for Engineering (PSS/E) is a software tool used by

EDM to simulate power transmission systems.

FPE05 Tool for Indication of System Availability Map showing availability to accommodate new connections per substation


No Description of procedures/norms/regulations to be applied to the process

1 Grid Code - Ministerial Diploma of the 27th of August 2014 - Establishes the technical conditions for connection to the National Electricity Grid and technical conditions for planning and exploration.




& Support

1

Load flow simulation with the outdated data model of the electrical system that could result in recommendations of solutions that even

applied will not solve network bottleneck node problems and reduce the power quality supplied to new and old customers.

Establish monthly technical meetings to inform about operating status and

evaluate/scheduled system interventions.

R: DPSE & GPE

S: DGD

2 Risk of creating choke nodes in the grid during the execution of electrification projects, which may require misappropriation of

financing for corrective maintenance and reprogramming of projects.

Introduce quarterly system power

flow verification and analysis routines to monitor flows and anticipate bottlenecks

R: DPSE & GPE

S: DGD

Tool PSSE - Power System Simulator for Engineering

Power System Simulator for Engineering (PSS/E) is a software tool used by EDM to simulate power transmission

systems.


Tool FPE05 - Tool for Indication of System Availability

Template showing the availability for accommodation of new connections per substation.

Cont.


PR-P&E.3 - Revision of the Forecast Electrification Plan


Process Revision of the forecast electrification plan Reference PR-P&E.3

Electrification

Macro Process Processes for Operational Planning of Electrification

Execution

Frequency Quarterly


Objectives:

- Update the forecast electrification plan in accordance with the activities and projects approved in the

Activity and Budget Plan as well as projects that are scheduled or currently being implemented.

- Define intervention measures and recommendations as a result of deviations in the structuring and

implementation of activities and projects against the forecast plan.

Outcomes:

- Review of the forecast electrification plan;

- Monitoring of the implementation of the forecast electrification plan.

All entities

responsible for the process

Executing Unit DGD, DES, DPSE and Delegations

Responsible Unit DGD

II. Process Mapping

II-1. Flow chart

See Annex 2 for full page view

II-2. Activity Flow

Execution time


1st Step: Data Preparation

1.1. Gathering Information about Projects and Electrification

Activities 5 days

Responsible: DGD

Areas to involve: DPSE and Delegations

Description of the action: The DGD, in coordination with DPSE and DES, should obtain:

- Implementation reports about electrification activities in the delegations and electrification projects currently in progress;

- Planned electrification activities and electrification projects currently being structured;

- The availability of the electrical system to accommodate new connections and necessary interventions must be verified.

Note: the availability of the electrical system is verified through the PR-P&E.2 process – Electrical System Availability Analysis described in chapter 3.2

Specific outputs: No output.


2nd Step: Analysis and Recommendation

2.1. Compilation of new data 10 days Responsible: DGD

Areas to involve: DPSE and DES

Description of the action: The DGD should compile new data relevant to the forecast electrification plan, such as:

- Project progress;

- Acquired or non-enabled financing;

- New projects structured;

- Interventions on the electrical grid that solve the strangulation knots in the grid.

Specific outputs: Data collection report

2.2. Deviation and impact study 10 days

Responsible: DGD

Areas to involve: DPSE, DES, DRCM, DRPM, DRS, DRC, DRN and the

Delegations (23)

Description of the action: The DGD, in collaboration with the DAL, Delegations, DPSE and DES should check what changes the

plan has undergone concerning:

- System capacity to accommodate new connections;

- Significant changes to the number of potential connections;

- Priority Changes;

- Availability of financial resources and investment requirements;

- Deviation in implementation schedules.

Specific outputs: Report with deviations against the forecast plan for the current year

2.3. Produce recommendations and intervention measures 60 days

Responsible: DGD

Areas to involve: DPSE and Delegations

Description of the action:

- Request system analyses and optimized solution recommendations from the DPSE;

- Propose the identification of additional funding or the revision of project budgets if necessary;

- Propose intervention measures to improve material procurement and risk reduction;

- Demand contractor accountability.

Specific outputs: List of recommendations to be implemented by DAL, DES and Delegations.

3rd Step: Consolidation and Approval

3.1. Update of the Forecast Plan 3 days

Responsible: DGD

Areas to involve: DPSE, , DGC, DAL,

DEF, DES

Description of the Action: DGD produces a consolidated version of the forecast electrification plan, which includes changes in terms of necessary investment and the revised electrification implementation schedule.

The DGD should submit the updates to the Forecast Electrification plan to the EMU for validation, and the EMU should submit it to the Electrification Committee.

Specific outputs: Version of the forecast electrification plan for the next 3 years (2020 to 2022) reviewed by the DGD.

3.2. Validation of the revisions to the forecast electrification plan 3 days

Responsible: EDM Electrification

Committee

Areas to involve: DPSE, DGD, DGC, DAL, DEF, DES

Description of the action: The Electrification Committee will verify the consistency and alignment of the plan with the National

Electrification Strategy and budget plans for the next 3 years.

Specific outputs: Revised version of the forecast electrification plan for the next 3 years (2020 to 2022).

3.3. Plan Review and analysis of comments and observations 5 days

Responsible: DGD

Areas to involve: DPSE, DRCM, DRPM, DRC, DRS, DRN, Delegations


Description of the action: DGD will make corrections to the plan based on comments from the EDM Electrification Committee

and the EMU, if necessary.

Specific outputs: Revised version with comments and guidelines from the Electrification Committee incorporated in the Forecast Electrification Plan for the next 3 years (2020-2022)

3.4. Approval of the revision of the 3-year forecast electrification

plan 5 days

Responsible: Administration


Description of the action: The Board of Directors should review the 3-year Forecast Electrification Plan, and approve it or submit it for review considering the comments. Once the plan is approved, it should be forwarded to DGD, DES, DPSE and other entities.

Specific outputs: Revised and approved Forecast Electrification Plan for the next 3 years (2020-2022).

III. Tools

Tools applicable to this section is the previous forecast template, to be built on and revised.

Tool Name Description/Purpose

No applicable tools for PR-P&E3 identified at this stage, this may be updated during the

implementation.

No applicable tools for PR-P&E3




2 Master Plan for System Integration, 2017 - Formulates the 25-year development vision for the Generation, Transport and Distribution electrical systems.




6 National Electrification Strategy for 2018-2030 (or latest version)- Mechanism that sets out the vision for achieving the goal of universal access to electricity by 2030. User should verify the latest version available.


No risks currently identified for PR-P&E3. This may be reviewed during the implementation.

VI. Support Tools (N/A)

There are no tools specific to PR-P&E.3


PR-P&E.4 - Prioritization and Scheduling of Electrification Projects and Resources


Process Prioritization and scheduling of electrification projects and resources

Reference PR-P&E.4


Structuring and Prioritization Processes, and Resource Planning Execution time

On demand

Objectives and

Outcomes

Objectives:

- Structure electrification projects ensuring a systematic prioritization process for projects yet to be developed.

Outcomes:

- Electrification Projects prepared with due reasoning and in accordance with the National Electrification

Strategy

- Overview of all EDM projects from the conception phase to the implementation phase

- Proposals for justified projects, in order to request funding from International Financial Institutions and

cooperation partners, and submission to the Government of Mozambique


Executing Unit DPSE, DGD, DPMF, Delegations, DPFO, DAL

Responsible Unit DES

II. Process Mapping

II-1. Flow chart

See annex 2 for full page view

II-2. Activity Flow

Execution time


1st Step: Prioritization and project design

1.1. Definition of principles and assumptions for project

configuration 3 days

Responsible: DPSE

Areas to involve: DES and DGD

Description of the action: The DPSE should coordinate with DES in order to prepare the project structuring phase and define principles and assumptions for setting up projects that are aligned with:

- Activity and Budget Plan;

- Forecast Electrification Plan;

- Master Plan.


The defined principles should enable the configuration of projects that are aligned with EDM's guiding documents, and that can be funded by

International Financing Institutions and donors.

Specific outputs: Meeting minutes with principles and assumptions for project configuration

1.2. Project design 15 days Responsible: DPSE

Areas to involve: N/A

Description of the action: The DPSE has to, based on the principles and information from the identification of potential connections,

create various project proposals or programs using the FPE06 Monitoring Model for Proposal Elaboration that should:

- Indicate the geographical location where the project will be implemented;

- Indicate how many potential customers will be covered;

- Indicate the estimated investment amount;

- Indicate the expected duration of implementation;

- Describe the project;

- Set project name and unique project identifier;

- Set a priority level (High, Medium and Low) according to the electrification strategy guidelines to prioritize electrification areas:

• Well-built urban areas where MT, BT or both systems already exist and have the ability to accommodate additional connections;

• Highly populated, high-demand urban areas where revenues generated through connections can justify capital investment and

where MT systems already exist and have capacity;

• High density urban areas with low demand, where MT systems already exist and have capacity;

• High density rural areas where MT supply still needs to be provided;

• Low density rural areas where electrification would be of low priority and where alternative off-grid systems may be indicated.

At the end of the year the DPSE should provide a map of all proposed electrification projects at the design stage.

*Note: This criterion was specified using the National Electrification Strategy guidelines. The Electrification Steering Committee and the EMU must be responsible for reviewing the prioritization criteria when they update the Electrification Plans. This must be discussed with the Ministry and the external entities financially supporting the Electrification Program, such as the World Bank.

Specific outputs: List of project proposals in design stage

1.3. Review of projects at design stage and priorities 5 days Responsible: DES

Areas to involve: DPSE

Description of the action: The DES should review the project configurations and priority levels and submit project proposals to the DPSE in order to carry out the economic and impact assessment of the projects together with the Department of Financial Modeling and

Budget (DMFO).

Specific outputs: List of revised project proposals

1.4. Economic and Financial Impact Assessment for the project 5 days Responsible: DPSE

Areas to involve: DPMF

Description of the action: The DPSE, in coordination with the Department of Financial Modelling and Planning (DPMF) should carry out

the assessment of the project's Economic, Financial and Sustainability Impact.

Note: The assessment of financial and economic impacts of the projects is verified through the PR-GFO.1 process – Economic and financial impact and sustainability analysis described in chapter 4.4.

The assessment of economic and financial impacts of the projects should be submitted to the EMU for evaluation and comment and for submission to the EDM electrification committee.

Specific outputs: Advise on economic-financial and sustainability analyses

1.5. Project Priority Review 5 days


Committee

Areas to involve: DGD, DPSE, DGC.

Description of the Action: Under the EDM Electrification Committee, a set of project proposals should be analyzed, and the priority of project proposals should be reviewed.

Specific outputs: EDM Electrification Committee opinion on project proposals.

1.6. Go/No Go decision 5 days


Committee

Areas to involve: DGD, DPSE, DGC.


Description of the Action: Under the EDM Electrification Committee, projects must be reviewed, and a decision should be made as to

which ones should advance to the identification of funding for the feasibility study or directly for project execution, in case an additional

feasibility study is not necessary.

Specific outputs: List of projects validated for identification of Financing

1.7. Project Sheet Development 5 days

Responsible: DES

Areas to involve: No departments to be involved.

Description of the Action: DES, based on the projects validated for identification of Financing, shall create the project form using the Project Form - PE - 02 template, which should indicate the following data:

- Project Name;

- Unique Identification Number (NUI);

- Location;

- Voltage levels (kV);

- Existing grid connection point (s);

- MT grid kilometers (km);

- BT grid kilometers (km);

- Number of PTs;

- Number of Customers covered;

- Number of IP lamps;

- Estimated investment amount (MUSD);

- Funding source;

- Priority Level;

- Project Proponent.

The project form should be shared with DPSE and DGD.

Specific outputs: Project form

2nd Step: Feasibility and Scheduling

2.1. Project Document Production Dependent on

each project

Responsible: DEPS


Description of the Action: The DPSE should produce a detailed project document in which it presents grounds for the need for its execution. It will be up to the project team to define the structure of the document; below is a proposed framework for consideration:

- Project Context (Background);

- Project description and rationale;

- Objectives and Scope of the project;

- Existing Infrastructures;

- Demand Growth Forecast (Load));

- Planned Investments for the project;

- Implementation Program;

- Project Beneficiaries and Expected Results;

- Implementation Structure;

- Corporate Responsibility;

- Risks and Assumptions of the project;

- Financial and Organizational Sustainability;

- Review, reporting and assessment mechanisms.

The DPSE should submit the Project Document to the EMU for validation and comment, and it should in turn be submitted by the EMU to the Electrification Committee.

Specific outputs: Project Document

2.2. Validation of Project Documents by EDM Electrification

Committee 5 days

Responsible: EDM Electrification Committee

Areas to involve: DGD, DPSE, DGC


Description of the Action: The DPSE shall submit the Project Document rationale to the Electrification Committee in order to obtain a

No Objection.

In case of non-approval, the Project Document should be sent to the DPSE for incorporation of the Committee’s comments, in a work session that includes DES and DGD.

Specific outputs: Project document approved by EDM Electrification Committee

2.3. Validation and Approval by Management 5 days

Responsible: Administration of the Social Energy Directorate


Description of the Action: Management will review the Project Document and approve it so that it may begin implementation.

Once approved by the Committee, the Project Document should be referred to DES and DGD for funding.

In it is necessary to perform the feasibility study with external consultants, financing needs to be identified for this purpose. In case it is not

necessary, financing should be identified for project execution.

Specific outputs: Project Document approved by Administration.

2.4. Identification of Financing for the feasibility study Dependent on each project

Responsible: DES

Areas to involve: DMR

Description of the Action: Electrification projects may be funded by the Electrification Account or by International Financial Institutions

(IFIs) if they are outside EDM's own expansion area.

If the project covers areas outside EDM's own expansion areas, funding may be sought from the Electrification Account. DES should, in coordination with the Department of Resource Mobilization (DMR), submit the project proposal to the Coordination Committee

established by the Ministry of Mineral Resources and Energy (MIREME) - Coordinator, Ministry of Economy and Finance (MEF), EDM, FUNAE and Energy Sector Working Group (ESWG) for assessment, eligibility check and prioritization for obtaining available funding.

While the electrification account remains non-operational, EDM may seek funding from IFIs and cooperation partners to implement

projects outside and within its own expansion zone, and should:

- Promote the project to traditional cooperation partners in order for them to assess and express interest in the project;

- Submit project to GoM (MIREME AND MEF) for formal submission of funding request;

- Track and monitor steps;

• The development of the project appraisal;

• Issuance of “No Objection” to the request submitted by GoM;

• Negotiation and signing of the financing agreement;

• Signing of the retrocession agreements;

• Effectiveness of the agreement and mobilization of funding.

See process PR-P & E.6 for more details on project fundraising and fund allocation.

Specific outputs: Financing agreement for the feasibility study and financing fulfillment documents.

2.5. Realization of Feasibility Study Dependent on

each project

Responsible: DPSE


Description of the Action: A comprehensive Feasibility Study may be requested by the financier, and must contain:

- Brief description of the project, location, expected duration of execution, expected impacts and benefits of the project;

- Assessment of the proposed technical solutions;

- Forecast of load/consumption increase;

- Assessment of the investment amount and estimated operating costs;

- Project schedule;

- From a social point of view, it should describe:

• Main aspects and impacts of a social nature such as the benefits to be contemplated in the communities, and the number of families

to be benefited;

- From an environmental point of view, it should confirm:

• If the project falls into the category that does not require environmental impact studies and recommend that precautionary and

mitigating environmental impact measures be taken.

Specific outputs: Project Feasibility Study.


2.6. Identification of financing for project execution Dependent on

each project

Responsible: DES

Areas to involve: DMR

Description of the action: This activity consists in the search for financing for project execution, in which the Department of Resource Mobilization (DMR) should be involved, and the Electrification Committee and the EMU should be consulted. All of the points in 2.4. –

Identification of Financing for Feasibility Study – should be followed.

See process PR-P&E.6 for more detail about raising and allocating funds to projects.

Specific outputs: Financing agreement for the feasibility study and financing fulfillment documents.

2.7. Project schedule update 5 days Responsible: DPSE


Description of the Action: DPSE should update the project schedule map according to the approved Project Document data and feasibility study if implemented.

Specific outputs: Updated Project Schedule Map

III. Tools


FPE06 Monitoring of Proposal Development

The template allows the project configuration to be registered at the inception stage and allows for the development phases of the conceived projects to be monitored.

FPE07 Project Fact Sheet The Project Fact Sheet is a control tool that records key project data in the development phase.




2 Master Plan for System Integration, 2017 - Formulates the 25-year development vision for the Generation, Transport and

Distribution electrical systems.




6 National Electrification Strategy for 2018-2030 - Mechanism that sets out the vision for achieving the goal of universal access to electricity by 2030.



& Support

1

Failure to approve electrification projects by the MIREME Electrification Committee because they do not follow the prioritization principles of the National Electrification Strategy.

Conduct engagement meetings with stakeholders as MIREME and FUNAE early to validate the prioritization processes before the planning process star and document

the prioritization procedures to ensure clear alignment between all stakeholders.

R: DES

S: GPE & GPPR


Tool FPE06 - Monitoring of Proposal Development

The tool allows for project configuration to be recorded at the inception stage and gives an overview of

electrification plans.

cont.


Tool FPE07 - Project Fact Sheet

The Project Fact Sheet FPE-07 is a control tool that records key project data in the development phase.

PR-EXE.1 - Management of Electrification Projects and Connections Auditing

I. General Characterization of the Process

Process Management of electrification projects and connections auditing Reference PR-EXE.1


Monitoring of electrification project portfolio Executing frequency

On demand


Objectives:

- Systematize the monitoring activities for electrification projects’ execution.

Outcome:

- Execution of electrification works and connection of new consumers


Executing Unit DGD, Delegations, DPSE

Responsible Unit DES

II. Process Mapping

II-1. Flow chart


See Annex 2 for full page view

II-2. Activity Flow

Execution

time

Responsible for executing and

Areas to involve

1st Step: Project Preparation

1.1. Set up project team (PIU)* Dependent

on the project

Responsible: Board

Areas to involve: DES

Description of the action: The Board of Directors, through the work order, must approve the Project Implementation Unit (PIU). This unit should perform its functions and activities based on the project implementation manual.

* This task is executed whenever new Financiers to the Electrification Program demand setting up a PIU for a project.

Specific outputs: Organizational Structure of the PIU and designated team members

1.2. Prepare the PIU’s activities matrix 15 days Responsible: DES (PIU)

Areas to involve: Financier

Description of the Action: Once the PIU is approved, it will have to prepare several working documents such as:

- Procurement Plan, which should include all procurement, work and goods contracting, Non-Consulting Services and Consulting Services

activities and a preliminary cost estimate for each package;

- Communication plan with the most relevant project stakeholders, to be prepared by the Project Manager.

These documents should be filed in the project database and shared with the financier.

Specific output: PIU Activity Matrix

1.3. Hiring of Consulting Services

To be defined in

the Activity

Matrix

Responsible: DES (PIU)

Areas to involve: Financier

Description of the Action: Once the PIU has been approved, it must prepare several working documents such as:

- Terms of Reference for contracting consultancy services for the project, which must be submitted for approval by the financier to

proceed with the process;

- Release an Expression of Interest request to be answered within a period of no less than 14 days in which companies will be selected to

make up the Short List for the tender;

- Invite shortlisted (RFP) companies followed by a bid evaluation process and the selection of the company that will provide the consultancy

service;

All documents used for hiring should be aligned with the standard used by the financier and must be filed in the project database and shared

with the financier, accompanied by the documents submitted by the companies and the assessment documents.

Specific outputs: Assessment Report of proposed consulting services


1.4. Hiring of non-consulting services, works and goods

To be

defined in

the Activity Matrix

Responsible: DES (PIU)

Areas to involve: Financier, Consultant, DPSE

Description of the Action: The PIU, in coordination with the consultant/inspector, should hire the contractor and purchase materials for the work in cases where the project is not implemented using turnkey methodology.

In preparing the procurement, the consultant, in coordination with the PIU, shall establish technical requirements for the procurement of

non-consulting Goods, Services and Works to be used during the project. This point may not apply when selecting technical requirements that have already been elaborated for a project.

All documents used for hiring should be aligned with the standard used by the financier and must be filed in the project database and shared with the financier, accompanied by the documents submitted by the companies and the assessment documents. The conflict of interest

policies must be thoroughly observed.

Specific outputs: Assessment Reports of Proposals for Non-Consulting Services, works and goods

2nd Step: Execution of the work

2.1. Supervision of electrification works Dependent

on the

project

Responsible: Engineering

Consultant/inspector

Areas to involve: Delegations, DES

Description of the Action: Before the execution of the project, the consulting service should, visit the site to prepare the executive

project1 and review the material quantity map.

- The PIU, together with the Consultant, shall prepare the specifications for contracting services and purchase of goods;

- PIU and the Consultant prepare the Terms of Reference for the hiring of additional non-consulting services for the project, which must

be submitted for approval by the financier in order to proceed with the process;

- The PIU should make invitations for Expression of Interest and the nomination of shortlisted companies for the bidding shortlist;

- The PIU should prepare and distribute the Request for Proposals (RFP) to the shortlisted companies, followed by a bid evaluation process

and selection of the company that will provide the service.

During the execution of the contract, the Engineering Consultant or Inspector should carry out field visits to monitor the work with the help

of the project’s Local Technical Manager and supervising local and regional Engineering Assistant:

- Prepare Measurements control and certifications”2 relating to the work elaborated and performed by the Contractors;

- Monitor the manufacturing process, the inspection of equipment in factories and the signature of the Factory Acceptance Testing

Records;

- Conduct inspections and develop the List of corrections to be implemented by the contractor;

- Monitor the quality of services and performance of the contractor and the implemented grid, and the quality of installed equipment;

- Prepare monthly project progress reports.

Specific outputs: Monthly reports of work execution, reports with Measurement Records and List of corrections

2.2. Contract Execution Dependent

on the project

Responsible: Contractor

Areas to involve: PIU, Consultant

Description of the Action: In the event that the project is not a turnkey type, EDM shall provide all equipment and goods for the contractor to carry out the work and these goods and equipment shall be stored in the contractor's warehouses in designated units for each work to be performed.

During the execution of the work the contractor shall:

- Start with topography work, where required;

- Install the Medium voltage, Low voltage and public lighting infrastructures;

- Develop a plan for necessary power outages;

- Organize work progress meetings at the work site that the Site Supervisor should attend.

- Perform georeferenced registration of new EDM assets and submit them to EDM for update in the system.

Specific outputs: Monthly reports of work execution

1 Executive project is the constructive solution of the design of a building, represented graphically in two-dimensional or three-

dimensional form. It consists of a set of detailed drawings and specification of materials and construction techniques for execution. 2 Document indicating the quantity of work performed and its value at a given time.


2.3. Infrastructure Tests and Commissioning Dependent

on the

project


Areas to involve: Consultant, PIU

Description of the Action: At this stage, the commissioning of the work (which may be total or partial) will be carried out and

infrastructure tests will be made. The test plan should be prepared by the contractor and approved by the consultant/inspector, and the following activities must be performed:

- Careful visual control of all elements of electrification activities;

- Functioning tests of the lines, transformers and other equipment installed by the contractors;

The consultant will prepare an inspection report with a detailed description of the inspection findings and tests to issue a provisional

acceptance, which marks the opening of the work to public use or the deems it operational;

In the event of malfunctions, improvements should be made to the inspection and test report, and the provisional acceptance will be signed only after corrections have been made.

In the act of Provisional Acceptance, the Contractor shall deliver to EDM all documents and accessories of operation and maintenance of the work such as operation and maintenance manuals of the installed equipment, “as built” drawings of the installations, various testing equipment, maneuver accessories, licenses obtained from State or Municipal Entities, etc.

Specific outputs: Provisional Acceptance Report

2.4. Connection of new customers Dependent

on the project


Areas to involve: Delegation,

Consultant

Description of the Action: The new customer connection phase begins after the commissioning of the grid:

- The contractor should provide power supply lines for new customers, collect new customer data in accordance with EDM's requirements

in the scope of the contract, and produce supporting documents and customer geographic coordinates;

- Consultants and the Delegation's Commercial Technical Sector should carry out inspections, and verify and confirm the number of

connections;

- The collected data shall be delivered to EDM's Commercial sector for registration in the commercial system (CMS), and the geo-

referencing system in use at EDM, as well as the binding of customer contracts to the meters.

- The contractor shall install meters

Specific outputs: Report with new registered client data by unit

3rd Step: Project closure

3.1. Audit of new connections Dependent

on the

project

Responsible: Consultant

Areas to involve: Delegation

Description of the Action: Once the new clients are registered, the consultant together with the Delegation's Commercial Technician

should:

- Select a random sample of 10% of all new customers covered by the electrification unit and audit the registration data in the CMS system

and inspect the installation.

- The monthly energy consumption history of new customers should be analyzed, and the consumption profile should be assessed.

- Customers who do not buy electricity for more than two months should be inspected for evidence of fraud.

Specific outputs: Audit report for the new connections per unit

3.2. Activation of the warranty period and project closure Dependent

on the project

Responsible: Consultant


Description of the Action: In the act of provisional reception the warranty period of the work is activated, and the contractor may still

make corrections to defects in the work that will not have an impact on the operation.

At this stage, EDM will operationalize the new infrastructure, where it will be able to verify the normal operation of the new grid and prove that the grid specifications are similar to the executive project.

* After confirmation by the Supervision Firm that the project is completed, the Project Manager signs a provisional acceptance letter with the contractor and the warranty is activated as per the contract terms. Delegation must deliver the records for the Finance Department.

Specific outcomes: Project Completion Report

III. Tools



FOP-01 Monitoring of Project execution Tool that should capture monthly project execution data.

IV. Procedure and Applicable Rules


1 Project Implementation Manual for Energy for All Project in Mozambique ProEnergia - manual that defines the procedures to be implemented by the PIU team in the Pro-Energia project

2 Decree No. 5/2016, of the 8th of March Regulations for Contracting Public Works, Supply of Goods and of Services to the State

3

World Bank Borrower Procurement Regulations for Investment Project Financing - dated July 1st, 2016, and revised

in August of 2018, the provisions of the Financing Agreement and the Guidelines to Prevent and Combat Fraud and Corruption on IBRD Loan-Financed Projects and IDA Credits and Donations, dated October 15th, 2006 and reviewed in January 2011 and July 2016.



& Support

1

Delays in project implementation due to lack of clear implementation procedures, establishment of appropriate communication channels, stakeholder engagement and lack of supervision and monitoring of the

work.

Strengthen communication between managers and contractors, require

progress reports, and establish checkpoints for interdependent and critical activities.

R: GOPL

S: DES &

DGD

2 Fraud in customer connections due to lack of proper audit and oversight in customer registration in EDM systems.

Involve the community leaders in the electrification process, so that they can influence the new customers to

avoid fraud. And EDM/Delegations must regularly analyse acquisitions of energy to detect potential fraud

connections and inspect the suspicious ones among the prepaid meters installed in the Electrification

Program.

R: DGD & Delegations

S: GOPL

Tool FOP-01 - Monitoring of Project execution

Tool for registering monthly project execution information.


PR-EXE.2 - Monitoring of Delegation Electrification Activities


Process Monitoring of delegation electrification activities Reference PR-EXE.2

Electrification Macro

Process Monitoring of Electrification Project Portfolio

Execution

Frequency On demand


Objectives:

- Systematize the execution activities of electrification works by delegations.

Outcome:

- Execution of electrification works, and new consumer connections performed by the delegation


Executing Unit Delegations, DPSE

Responsible Unit General Directorate of Distribution (DGD)

II. Process mapping

II-1. Flow chart


II-2. Activity Flow

Execution time


1st Step: Preparation of the Activity

1.1. Identification of electrification activity 5 days Responsible: Delegation

Areas to involve: No area to involve

Description of the Action: Delegations should identify the needs for works based on the forecast plan, which indicates the areas to be electrified by each delegation, as these areas have already been prioritized. (See PR-P&E.4 – Prioritization and Scheduling of Electrification projects and resources).

Identification of the team that will be responsible for the activity.

Specific outputs: List of areas to be electrified

1.2. Diagnosis of Existing Grid Depending on

work

Responsible: Delegation

Areas to involve: No area to involve

Description of the Action: Verify the physical and technical conditions of the grid where there will be potential connections in order

to indicate the need for materials and interventions for the repair, reinforcement or rehabilitation of the grid. Delegation technicians with the help of the FPE02 Grid Diagnostic Model shall:

- Verify the physical state of the line segment by observing the condition of the poles and cables of the circuit where potential

consumers will be connected;

- Record the number of outages in the low voltage grid;

- Measure the voltage level at each low-voltage output during peak hours to verify that the variation rate is within the allowed range of

220V ± 5% according to the Grid Code;

- Verify the load level of the transformers if they exceed 100% of rated power during peak hours.

Propose interventions on the grid indicating the amount of Medium Voltage, Low Voltage line and the amount of materials and equipment needed to perform the work.


Specific outputs: List of areas for electrification

1.3. Preparation of Work Factsheet 15 days Responsible: Work team

Areas to involve: No areas to involve

Description of the Action: The delegation should set up a multidisciplinary team composed of technicians from the operations and

maintenance sectors as well as the commercial technical sector to visit the field and register:

- Materials and Equipment needed to perform the work, categorized into Medium and Low Voltage Grid;

- Necessary services such as deforestation, land preparation, etc.;

- Consumer connections, where there is a number of supply lines that will be covered;

- Technical drawing of the grid segment to be implemented with the existing grid connection point.

The work factsheet should contain the necessary investment value for the material as well as for installation.

Specific outputs: Work factsheet

1.4. Approval of the Work Factsheet 15 days

Responsible: DGD

Areas to involve: Delegation, DPSE

Description of the Action: The Delegation shall submit to the Regional Department/General Department of Distribution to approve the execution of the Work.

Once approved, the Systems Planning and Engineering Department is notified of the work to be implemented.

Specific outputs: Opinion on the Work

2nd Step: Execution of the Work

2.1. Execution of the Work Dependent on the

work

Responsible: Work team

Areas to involve: DAL

Description of the Action: The delegation may carry out the work and:

I. Acquire materials and equipment for the work through DAL;

II. Install the infrastructure, in this case Medium Voltage, Low Voltage and public lighting networks (poles, conductors and public

lighting);

III. Careful visual control of all elements of electrification activities;

IV. Functioning tests of lines, transformers and other equipment installed by contractors

V. Prepare monthly work progress reports;

At the end of the work, after commissioning and testing, the DPSE shall be notified of any changes made to the grid as well as georeferenced surveys of new grid assets.

Specific outputs: Monthly work execution reports

3rd Step: Work completion

3.1. New consumers connections and Audit Dependent on the

work

Responsible: Work team


Description of the Action: When the work can already be used by the public, the community is requested to go to the EDM Agency to make the energy contract effective. Once signed, the contract should cover:

- Installation of power supply lines;

- Installation inspection;

- Meter installation.

Once the work is completed, the work team should register all new customers in the electrified area and analyze the monthly energy

consumption history of new customers in order to identify signs of fraud. Customers who do not buy energy for more than two months

should be inspected.

Specific output: Work Completion Report

III. Tools


FOP-02 Monitoring of the execution

of Delegation activities Tool that captures monthly data on the execution of delegation electrification activities.


FPE01

(Annex 1A)

Load Capacity Diagnosis at Transformer Post

This tool will be used by delegations to carry out the diagnosis of the transformer station that will be connected to potential connections in order to verify the load capacity and the possibility for connecting new consumers.

FPE02

(Annex 1A)

Circuit Diagnosis and Inspection

This tool will be used by delegations to carry out the diagnosis and inspection of the

grid circuit that will be connected to potential connections in order to identify transformer posts that require reinforcement and lines that require intervention.



1 Decree No. 5/2016, of the 8th of March Regulation for Hiring Contractors, Public Works, Supply of Goods and Provision of Services to the State



& Support

1 Lack of visibility of delays in Procurement activities, execution of work that may impact new call numbers.

Monitor Material Delivery. R: DGD & Delegations

S: DAL

2 Lack of technical resources to execute electrification activities and financial resources to hire contractors.

To include all electrification activities to be carried out by the Delegations

in the Forecast Electrification Plan.

R: GOPL

S: DPFO

3 Insufficient project management capabilities as electrification has been mostly been done through turnkey projects centrally managed, not by the Delegations.

Carry out an accurate diagnosis and assessment of the needs for project

management qualified resources in all Delegations.

R: GOPL

S: DES &

DGD

Tool FOP-02- Monitoring of delegation’s implementation activities

Tool that captures monthly data on the execution of delegation electrification activities. See Annex A1

for the other two applicable tools, FPE01 and FPE02.


PR-EXE.3 - Promotion of Connections and Community Relations


Process Promotion of connections and community relations Reference PR-EXE.3

Electrification

Macro Process Monitoring of the Electrification Project Portfolio

Execution

Frequency On demand


Objectives:

- Ensure communication and collaboration with community leaders and local authorities in the

electrification program

Outcomes:

- Identification of areas and connections to electrify in a quick manner and with local support;

- Obtaining stakeholder support for the electrification program to foster the EDM/Community

relationship


Executing Unit Delegation

Responsible Unit General Directorate of Distribution (DGD)

II. Process mapping

II-1. Flow chart



II-2. Activity Flow

Execution

time

Responsible for executing and

Areas to involve

1st Step: Preparation

1.1. Identification of communities covered by electrification

project promotion activities. 15 days

Responsible: Delegations

Areas to involve: No area to be involved

Description of the Action: With support from the forecast electrification plan, each delegation should, in coordination with local leaders and authorities, interact with the communities in the areas to be electrified.

They should identify areas where new connection identification activities will be promoted as well as determine the valid period for

promotions.

Specific outputs: List of community leaders and local authorities and number of potential consumers captured

1.2. Define people responsible for community engagement

officers and subjects to be utilized 15 days



Description of the action: Each delegation needs to have a defined focal point for community engagement activities and must provide guiding material about the community engagement program as well as a guide for introducing the Energy for All program.

Specific outputs: List of names of members for community engagement per Delegation

2nd Step: Execution of the Community Engagement program

2.1. Establishment of electrification committees and discussion

forums

Depending on the

department



Description of the Action: For areas covered by electrification projects or where an electrification work is in being implemented and there is no Energy committee, the Delegation, together with the community leaders, should promote the establishment of an electrification committee that will serve as a forum for discussion of issues related to electrification such as:

- Introduction of the electrification program and its benefits;

- Alignment of expectations regarding expected dates and results of works;

- Educate the community on the caution they must practice when it comes to electricity, the efficient use of electricity and the

dangers of fraud attempts;

- Request cooperation in the identification of potential connections and characterization of the area;

- Monitor the work and ensure information about each phase of.

EDM should be represented in this forum by the community engagement member appointed by the Delegation.

Specific outputs: Electrification Committee meeting minutes with list of participants

2.2. Promotion of connections Depending

on the

department



Description of the Action: Delegations should use the same image and messages to promote connections, using Energy for All leaflets, T-shirts and caps.

There must be a poster at the work site that identifies the program implementation area and the promotion of connections.

Specific outputs: Monthly reports of electrification campaigns


III. Tools

Designation Description/Purpose

N/A N/A



1 EDM Community Engagement Strategy - The strategy defines the main means of communication with communities and the pillars to achieve a good relationship with them.

V. Potential Risks and Their Mitigation


& Support

1

Discontent and lack of cooperation of communities covered by the

electrification program, caused by lack of communication and alignment of expectations.

Establish monthly community meetings to provide information and obtain inputs to improve the service.

R: DGD & Delegations

S: GOPL

VI. Support Tools (N/A)

There are no support tools specific to PR-EXE.3.


Annex 2: Process Flowcharts

PR-P&E.1 Process Flow for the Forecast Planning of Electrification


PR-P&E.2 Process Flow for the Electrical System Availability Analysis


PR-P&E.3 Process Flow for the Revision of the Forecast Electrification Plan


PR-P&E.4 Process Flow for Prioritization and Scheduling of Electrification Projects and Resources


2.5: Process Flow for Management of Electrification Projects and Connection Auditing


PR-EXE.1 Process Flow for Management of Electrification Projects and Connection Auditing


PR-EXE.2 Process Flow for Monitoring of Delegation Electrification Activities

PR-EXE.3 Process Flow for Promotion of Connections and Community Engagement Relations


Annex 3: Details of the World Bank “ProEnergia” Project

The Government of Mozambique intends is implementing the project “ProEnergia” under the program

“Energia para Todos”, with World Bank Group funding.

The Project’s objective is to intensify access to electricity for more families and companies throughout

the country, contributing to the universal electrification of Mozambique by 2030, The Project will help

expand access to electricity to peri-urban and rural areas throughout the country, using and expanding

the existing national grid and installing mini-grids based on solar generation in areas not covered by the

national grid.

Electricidade de Moçambique, E.P. (EDM) and Fundo de Energia (FUNAE) (both under MIREME) will be

the implementing entities. EDM and FUNAE will implement the project autonomously in distinct territorial

units according to specific Project components. EDM will implement Component 1 activities (densification

and extension of the national grid) while FUNAE will implement Component 2 activities (mini-grids).

The overall project has three components that make up a sustainable approach to electrification,

incorporating international experience, technical assistance and capacity building support.

Table 5. Description of the ProEnergia Project components

Component Description Expected Results

Component A:

Peri-urban and

Rural

Electrification

(Densification)

This component will finance the design,

procurement of materials and construction works

required to electrify all participating households

and businesses in the project target areas with high

population density, located close to existing

electricity networks (in peri-urban and rural

areas). It will be implemented by EDM.

EDM have identified over 500 settlements to be

electrified in approximately 20 districts across the

country.

The component is expected to connect around

267,000 households, of which:

1) 197,600 are in rural areas and

2) 69,400 in peri-urban areas.

It is expected that nearly 50 percent of new

connections are made in the five poorest

provinces of Mozambique – Niassa, Nampula, and

Zambezia, Cabo Delgado and Sofala. In particular,

more than 85,000 connections are expected to be

made in Nampula.

Component B:

Off-grid

Electrification

(though mini-

grids)

This component will finance the installation of

mini-grids for produce and distribute electricity in

areas where connection to the national grid is not

viable in the short and medium term.

This component will be implemented by FUNAE

through public-private partnerships (PPP) based on

contracts for the sale of electricity to EDM.

FUNAE has identified 13 potential mini-grid sites

across several districts in the north of

Mozambique to be supplied through combined

solar PV and battery storage with a total estimated

capacity of 2.6 MWp and with the potential to

reach 7,000 consumers.

The component will finance:

1) The construction of up to six of mini-grids,

adding approximately 4,000 new customers.

2) The expansion of off-grid energy markets in

Mozambique by supporting quality-certified

SHS’s and potential other energy

technologies such as solar water pumps for

agriculture and efficient cooking solution. It

is expected to reach around 18, 000

beneficiaries.

Component C:

Technical

Assistance and

Implementation

Support

This component will finance various technical

assistance activities, capacity building and

implementation support by MIREME, EDM,

FUNAE and the Energy Regulatory Authority, to

ensure the Project’s sustainability and monitor the

It is expected to strength the capacity of EDM

and FUNAE to implement the strategy.

For EDM will be implemented the following

initiatives: 1) Operational support; 2) Community

Engagement Program (connection campaign, etc.);

3) Young professional program; 4) Gender


Component Description Expected Results

impact of the interventions conceived and

implemented in the above-mentioned components.

mainstreaming; and 5) Capacity building and

sector studies.

For FUNAE will be implemented the following

initiatives: 1) Implementation support; 2)

Independent verification agent and consultancy

services for Result-based financing (RBF) and 3)

Capacity Building

Source: WBG, ProEnergia Appraisal Document

The project expects to benefit around 289,000 new customers provided with electricity services (through

grid, mini-grids and stand-alone SHS) including households (close to 1.45 million people representing

almost 5 percent of the population), enterprises and public facilities (800).

The Project Financing will have a duration of five years, funded through an IDA grant (60 million USD)

with joint co-financing for Component A in the form of a grant (70 million USD) from a new MDTF that

has been established, as it is demonstrated in the table below:

Table 6. ProEnergia Project budgeted financing for each component

Project Component IDA Financing ($M) MDTF ($M) Total ($M)

A: Peri-urban and rural electrification 60 70 130

B: Off-grid electrification 13 0 13

C: Technical assistance Implementation support 9 0 9

Total 82 70 152


The project is simultaneously complemented by three key technical assistance initiatives that are currently

ongoing financed by the Bank through ESMAP and PERIP:

• First, geospatial planning tool that will support determine how to optimally expand the electrical

grid, while identifying economically viable mini-grid sites, and suggesting priority focus areas for

standalone solar solutions.

• Second, an off-grid market assessment that will provide information on the status, players and

barriers for off-grid solutions.

• Third, a low-cost grid design review that will define the standards to maximize the use of

resources and, thus, maximize access. This technique promotes the use of single-wire earth

return (SWER) and shield wire schemes when the load and the geographic conditions are

adequate. They are expected to significantly reduce the cost of connecting households compared

to the traditional three-phase lines currently used in Mozambique for grid-based electricity

access expansion.

EDM will implement Component A (Peri-urban and rural electrification) and jointly with FUNAE

component C (Technical assistance Implementation support) using a Project Implementation Unit (PIU),

a newly formed unit in EDM to lead electrification projects. The PIU is led by a Director, a manager and

is supplemented with additional staff.

The PIU for the project besides the usual management activities will need to prepare the budgeting, ensure

the timely and accurate reporting, undertake the procurement activities and ensure that there is


warehousing capacity for the materials taking in consideration the Word Bank requirements. The table

below summarizes the requirement for each area of demand of PIU.

Table 7. Description of some relevant ProEnergia Project requirements by the WBG

Requirements Descriptions

Warehousing

Preparation

EDM will need to store and manage the materials and equipment to be used by the project that will be

done using number of warehouses prepared with physical separation for storage of main equipment

and materials to be used for the project within the premises of existing EDM warehouses. Each physical

warehouse will be linked to a virtual warehouse created through GIAF-ERP.

Budgeting

Preparation

The budgeting process will need to consider all relevant aspects of the project and be prepared at least

two months before the fiscal year to which it pertains. The DES, in close coordination with other

relevant units of EDM, will prepare budget activities which will be captured in annual work plans, which

will need to be submitted to IDA for approval.

Reporting Unaudited quarterly financial reports should be prepared to monitor the budget. This report will

measure the actual performance against the targets for each period, and should be prepared through

the integrated management tool for FM, GIAF accounting software, which is already functional and has

been used to prepare the latest annual accounts of EDM. These reports should need to be submitted

to World Bank within 45 days after the end of each calendar quarter to which they relate.

The semi-annual progress reports needs to be prepared by PIU and submitted to the World Bank.

These reports will include results indicators, as well as reporting on the implementation of the

(Environmental and Social Management Plans) ESMP, (Resettlement Action Plans) RAP, Health and

Safety Plans.

The Quarterly Progress Reports needs to be prepared by PIU to be submitted to MIREME and the

World Bank.

Procurement The procurement activities for the project will be managed independently by the main beneficiaries:

EDM through the Direcção de Energia Social (DES) and supported by the Supply and Logistics

Directorate (DAL) in accordance with the World Bank Procurement guidelines.

The Activities related to procurement will be divided in: Procurement of consultant services for: 1)

Updating Technical Standards for Design and Construction of Electricity Distribution Infrastructure; 2)

Design and Supervision of Works in northern provinces; 3) Design and Supervision of Works in central

and southern provinces.

The procurement of works: It will be limited to local marked particularly for the Installation Services

for rehabilitation and expansion of networks.

Procurement for goods: That should include the supply of meters, cables and conductors, poles, IT

equipment’s, Office furniture, vehicles, software’s, etc.


The implementation process of Component A of the project will follow the activities presented in the

diagram below:


Figure 20. Implementation framework of Component A works



In order to accelerate the implementation of the project, a Fast Track package was developed for 2019.

The table below shows the status of implementation of the overall package and the Fast Track for 2019.

Table 8. Execution status of the ProEnergia Project Activities

Package Status Detail of the Status

1. Main Package

• Construction of 1474Km of the MV Network;

• Construction of 3875Km of LV Network;

• Installation of 1544 Power Transformation;

• Connection of 280,000 new customers

In Progress

• Ongoing process for approval of Procurement Plan;

• Contract signed for the Consultant firm to update

the Distribution Standards;

• Completed environmental and social impact studies;

• Ongoing process for signing the financing agreement;

1.1. Fast Track 2019

Reinforcement of processing capacity in:

• Construction of 320 Km of the MV Network

• Construction of 787 Km of LV Network

• Installation of 320 Power Transformation

• Connection of 75,000 new customers

In Progress • Awarded the consultant contract for the preparation

of Term of Reference to contract the Suppler of

project materials

• The process of selecting consultants for supervision is

underway as well as the preparation of tender

documents for the selection of contractors for

installation.

Source: EDM team managing the ProEnergia Project

Below is a network map developed by the World Bank in November 2018 during the scoping activity of

the ProEnergia Project, which consists of a preliminary approach to map potential investment areas under

the electrification plans to be developed.


Figure 21. Mozambique electric system and mapping of potential investment areas for electrification

Source: World Bank, ProEnergia Project


Figure 22. Mozambique electric system and mapping of potential investment areas for electrification

Source: World Bank, ProEnergia Project

EDM EMU Handbook A: Electrification Planning and Execution2020/08/11 · SAEP started with a gap...

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