Projects

Sierra Leone Regulatory Strengthening and Tariff Development

Organization: DHInfrastructure

Description

The Millennium Challenge Corporation Coordinating Unit (MCCU) wanted to support the Commissioners and technical staff of Sierra Leone's Electricity and Water Regulatory Commission (EWRC) in developing the skills and knowledge necessary for EWRC to become an effective, independent, and transparent regulator for the electricity and water sectors. Specifically, MCC wanted to develop a training program for EWRC's Board of Directors, develop a business plan for the regulator, develop key regulations and tariff methodologies for both sectors, provide substantial training and capacity building to EWRC staff, and provide ongoing advisory support through an embedded regulatory advisor. MCCU hired AARC, with DHInfrastructure as subcontractor, to implement the project.

Service Provided

DHInfrastructure helped EWRC develop a regulatory framework for the electricity and water sectors. The framework included critical regulations and practices such as reporting requirements, regulatory accounting principles, licensing procedures, performance monitoring, economic and technical regulation policies, quality of service standards, and public hearing processes. DHInfrastructure then developed tariff methodologies for the electricity and water sectors, analyzed the cost of service and developed a financial model for two electric utilities, and held workshops with EWRC and electricity and water utilities in order to hold a 'dry run' rate-case submission exercise. We also developed an electricity sector financial model that projected up to 10 years of future financial statements for the utilities, government, and independent power producers. Throughout the project we provided hands-on training and mentoring to EWRC management and technical staff.