Projects of Sector planning Sector

Assessing the Performance of Power Sector Utilities in Sub-Saharan Africa

Organization: DH Infrastructure

Description

The World Bank wanted to develop a framework for periodically measuring the operational, financial, commercial, and corporate performance of power sector utilities in Sub-Saharan Africa. The framework would guide the Bank's dialogue with governments and donors for improving utility performance.

Service Provided

DHInfrastructure developed a methodological framework, including the selection of key performance indicators (KPIs) to evaluate utilities on operational efficiency, investment planning and procurement, maintenance of existing infrastructure, cash management, cost recovery, financial position, transparency and accountability, service quality, and corporate governance. We developed data collection and database templates and confirmed our proposed analytical approach with both the World Bank and the Association of Power Utilities of Africa (APUA). We collected and validated utility data and calculated KPIs for each dimension of utility performance. We then identified weaknesses and risk areas where utilities may be exposed to a high level of financial or technical risks. For each risk identified, we developed recommendations for risk mitigation. We also developed recommendations for utilities to improve their KPI scores. These recommendations provided specific initiatives utilities could take to improve their results in subsequent editions of the study. We summarized KPI scores and recommendations in a Final Report, which also included "Country Report Cards," one page notes that summarize the KPI scores for each participating utility. Finally, we presented the results and recommendations at a workshop with APUA.