Projects of Electricity Sector

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

Organization: DHInfrastructure

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 and to 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 dimensions of financial performance (cost recovery, liquidity, capital structure, and profitability), operational performance (reliability and efficiency), and transparency and accountability (performance management, integrity and internal controls, financial discipline, and stakeholder relations). 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 data from more than 70 utilities in more than 40 countries and calculated KPIs for each dimension of utility performance. We developed one-page notes that summarized the KPI scores for each participating utility. We wrote background reports on financial, operational, and transparency and accountability performance, a summary report describing the overall findings, and a topical paper assessing the impact of COVID-19 on utility financial performance.