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I. OPENING AND CLOSING CEREMONIES

OPENING CEREMONY

The opening ceremony of the 3rd meeting of the Scientific Committee of the mandate 2006 – 2008 of UPDEA was held on Tuesday the 2nd of April 2007 at Hôtel Ivoire, Abidjan in Côte d’Ivoire.

It was headed by His Excellency, Mr. Léon MONNET, Ministry of Mines and Energy of Côte d’Ivoire. On behalf of the President of the Republic he thanked the UPDEA for its decision to hold a similar meeting in 2004 inCôte d’Ivoire despite the intensity of the socio-political conflict. This decision is a mark of the traditional African solidarity and all the delegates should feel at home in Côte d’Ivoire. He pointed up that the theme of the next Congress of UPDEA which should take place in 2008 at Naïrobi in Kenya, that is “good governance of national electric sectors, key factor of the realisation of access to electricity for African people” is relevant.

Before that, Mr. J. N. NG’ANGA, Deputy Chief Executive of KenGen, representing Mr. E. NJOROGE, Chief Executive of KenGen and First Vice-President of the Scientific Committee took the floor. He apologize the fact that due to external constraints was not able to come at Abidjan. After that, Mr. NG’ANGA spoke about good governance because it is an important point that will help our companies to promote efficient and effective use of scarce resources in transparency, accountability and probity.

Before Mr. NG’ANGA, M. Herman MUTIMA SAKRINI, Secretary General of UPDEA, on behalf of the President of UPDEA, thanked the Ministry of Mines and Energy of Côte d’Ivoire who accepted to head the opening ceremony of this meeting despite his busy agenda. This is a proof of his commitment in the African cause. He also thanked the Ivorian electricity sector (SOGEPE, SOPIE, CIE, AZITO) for his support in the organisation of the event. He welcomed all the participants and asked them to do their best to make this meeting successful. For that, and as we are preparing the next congress of UPDEA at Naïrobi, the experts were asked to go as far as possible in the different themes defined during the first Scientific Committee. He closed his speech by presenting the program of the present meeting.

CLOSING CEREMONY

The closing ceremony took place on Thursday the 05th of April 2007 at Hôtel Ivoire.

It was headed by the Director of Energy, M. Simon EDDY, representing the Minister of Mines and Energy of Côte d’Ivoire. He congratulated the delegates for the good job performed in a short time. He ended by wishing the participants a safe return to home.

Before that, M. J. N. NG’ANGA, representing the President of the Scientific Committee, also congratulated the delegates for the good job done but urged them to keep a very good communication inside their Study Committees to achieve the objective of the period 2006 – 2008, that is “good governanceof national electric sectors, key factor of the realisation of access to electricity for African people”.

Finally, a special vote of thanks and a vote of thanks were addressed to the Political Authorities of Côte d’Ivoire and to the Leaders of the Ivorian electricity sector (SOGEPE, SOPIE, CIE and AZITO).

II. SUMMARIES OF THE COMMUNICATIONS

PRESENTATION N1

Regulation and good governance

Theme: Contribution of regulation to good governance of the power sector in Africa.

Chairperson: Mr. J. NG’ANGA Deputy CEO KenGen – Kenya

Presenter: Professor Benie Assie CEO of ANARE (Agence Nationale de Régulation) Côte d’Ivoire.

The presentation focused on:

  1. Terminological definitions
  2. Contribution of regulation to good governance
  3. Constraints of regulation and its impacts on governance
  4. Results on the power sector
  5. Perspectives of improvement of the regulation effectiveness.

Good governance is the transposition of rigour in the management of private utilities to that of the public ones in the 1980s. However, documents in course of process in South Africa reveal that since the 14th Century, good governance and fight against corruption were already applied in TOMBOUCTOU.

Regulation needs to be established when the State is to stand down in favour of a private operator for its skills and abilities in investments, for the matter it will be important at that moment to protect the customer ; notably, the weakest ones.

Regulation is one of the best tools of measure of good governance throughout its 5 components: establishment and implementation of rules, control, assistance, advice and protection of customers.

In respect of rules, we have legal and technical rules on one hand and economic rules with “price cap” and the normal output rate on the other hand.

As for constraints, we have 2 types of them:

  1. Constraints pegged since the origin to the choice of the type of regulation, either per decision (English speaking countries) or per contract (French speaking countries), but above all to the non-independence of the regulator notably due to its financing sources which do not allow him fix prices but rather give some viewpoints.
  1. Those due to its internal limits; its technical abilities to make rules respected, its incapacity to be transparent; since the agreements do not set limits of responsibilities nor resort ways.

In these circumstances, the results will conceivably be insufficient: access rates to electricity do not increase, tariffs are very high, service quality is very poor, thermal generation firms are making profits on poor populations back, and concurrently the State resources do not allow renewal of its investments.

The perspectives of improvement lies in: capacities building of national regulation bodies through their own channels AFUR (African Forum for Utility Regulators) and RERA (Regional Energy Regulators Association) for example, adaptation rather than transposition of western systems, establishment of distinct regulations for the interconnections and finally reach a real independence just like the judge who dispenses justice rather than the public prosecutor who is under the authority of the government.

PRESENTATION N2:

State of progress of the UPDEA main initiatives

Theme: Overview on the UPDEA main initiatives

Chairperson: Mr. J. N NG’ANGA Deputy CEO KenGen-Kenya

Presenter: Mr. SAKRINI MUTIMA, Secretary General of UPDEA

The major UPDEA initiatives focused on 5 areas:

  1. DATABANK OF THE AFRICAN POWER SECTOR

The information system in implementation by the UPDEA General Secretariat aims at exchanging in real time, complete, reliable, and regularly updated data among all operators of the power sector (power utilities and power pools). This system includes: general, technical, commercial and socio-economic data;information on production of electric equipments and projects. Its main objectives are: the benchmarking, the strengthening of cooperation and companies’ integration and serve as a helping tool for decision makers.

Implementation of this databank started in April 2002 and it was presented to certain partners (AfDB, WEC, power, pools…) who approved it, between November 2003 and July 2004. Its implementation on Intranet was put in service in October 2005.

Data collection is planned to end on April 2007.

II. AFRICAN FUND FOR THE DEVELOPMENT OF RURAL ELECTRIFICATION (FADER)

Rural electrification is generally regarded as non profitable and its implementation is submitted to some priority needs on one hand: health, education, roads construction and on the other hand, to some constraints: financing mechanisms and procedures are heavy and do take much time.

The FADER, a flexible and pro-active tool,must contribute to the establishment of a specific financing system which brings out rural electrification opportunities as basic solution for a sustainable and integrated development.

On the basis of the working group proposals (CER, Regional Development Banks, UPDEA and utilities) made in September 2005, search for funding of the feasibility studies of FADER is being carried. The beginning of the studies is planned on May 2007 so that an expert can work out and submit his report in October 2007.

III. AFRICAN ELECTROTECHNICAL COMMISSION FOR STANDARDIZATION(AFSEC)

The major objectives of AFSEC are: providing for standards which are adapted to African realities and to reduce costs of rural electrification projects.

The project was launched in June 2006 during the UPDEA 16th Congress in Accra and its basic texts were worked out by ad hoc working group, which was set up. This working group will finalize these documents during its meeting planned from 16 to 18 April 2007 in Addis-Ababa so that the inauguration of AFSEC can take place by end of 2007 at the latest.

IV. CROSS-BORDER ELECTRIFICATION PILOT PROGRAMME

The rates of access to electricity of African Countries are very low; from 3 to 35%.This is consecutive to low rate of rural electrification. Cooperation between utilities and neighbouring countries should be the pillar of increasing rate of access toelectricity through implementation of cross-border electrification projects.

At this current stage, a pilot programme has been identified. UPDEA is still in search of its funding.

V. TRAINING

Although, staff training is essential for utilities, it represents less than 0.1% of their budgets. Many member utilities of UPDEA own training centres which could benefit everybody.

The General Secretariat has defined a new approach including as well agents of execution as the managers.From which was organised the workshop on good governance held in Addis-Ababa on June 2006 intended to CEOs and MDs.

PRESENTATION N 3:

Contribution of an affiliate member

Theme: Transformers prevention against explosion and fire: the TP system (Transformer Protector) SERGI- France.

Chairperson: Mr MUTIMA Sakrini, Secretary General of UPDEA.

Presenter: Mr Da Silva Rui Antonio – SERGI – France.

Description of the TP system focused on three major axes:

• Designs; principle of the TP – physical phenomenon( generation of the electric arc, dynamic and static pressure, electric arc and pressure peak ratio)

• Functioning of the TP; depressurisation parameters of the TP- keys of success of a very fast depressurisation. TP tests on 20MVA transformers.

• Considering of actual constraints; installation on existing transformers- Examples of installation.

The presenter focused on the actual fire case which occurred in the hydro-electric power station at ITAIPOU in Brazil which main characteristics were:16 thousand of installed capacity, arc of 2500 A, transformer of 200MVA. Only 6.33 ms were enough for a total rupture of energy. And out of the exchanges which followed, the conclusion of the presentation include among others:

  1. Efficiency and quality of the TP are based on principles that SERGI imposed to itself:
  • To each transformer is dedicated one and only one TP, as well as a single protection system.
  • The TP is dimensioned as the most sensitive element that breaks to protect the transformer after the occurrence of the dynamic pressure, its usefulness and cost should be measured in comparison to the customer dissatisfaction notably in an interconnection context, potential losses, the transformer itself, human lives (operators and neighbours of the site), and non distributed energy.
  • The TP system cannot protect the transformer against heating due to overloading in operation, and outdoors high temperatures; other protection system need to be planned namely the cooling by water jet.
  • For having worked for African utilities, for instance in Botswana and in South Africa, the components of TP system have been adapted to African climate.
  1. The specifications of SERGI include the process of preventive maintenance:
  • A list of check points, control, tests and renewal of elements is provided to the customer at the commissioning. The periodicity of the monitoring varies between 6 months to 5 years.
  • The time of intervention which causes unavailability of the transformer are acceptable for instance from 2 to 3 hours for the TP replacement and a few days for installation of the whole TP system. However this number of days depends on the quality of the site plans.
  1. The purchase cost of a TP system was about 25,000 Euros (by February 2007).

III.PREPERATION OF THE 16th UPDEA CONGRESS

LIST OF SUB THEMES PROPOSED BY THE STUDY COMMITTEES

Sub Themes of the principal theme of the congress

  1. Good governance as a benchmark for best practices for operations and maintenance of electric utilities
  2. Access to good quality electricity for African People.
  3. Good governance and optimization of investments for rural electrification
  4. Customer Relations Management as a catalyst for easy access to electricity
  5. Improving internal efficiencies to facilitate easy access to electricity
  6. External options/strategies to facilitate easy access to electricity
  7. Quality management standards - a tool for good governance to improve access to electricity
  8. The key role of technical standards and technical regulations in realising access to electricity
  9. Good governance, credible credit rating and successful restructuring as a means of ensuring access to financing for African power projects.
  10. Goodcorporategovernance in utility companies:the strategic role of HR Management

Round table theme:

  1. Effect of political power on the execution of electrical sector projects

IV.SUMMARIES REPORTS OF THE STUDY COMMITTEES

The full versions are herein attached

SC1

The work so far has been a proposed workshop which was to be held in Dakar, Senegal which is still outstanding.

The meeting was also to come up with a sub-theme for the 2008 UPDEA congress to be held in June 2008 inNairobi, Kenya

Objectives for the Period 2005 – 2008

The objectives set by the committee for the period as stated is to work in two groups with the work set out as follows:

Work Group 1 to be led by KenGen with the following activities;

  • Completion of the Africa grid map, which was an activity from the previous period but was not completed owing to constraints of having all the various maps from the African Power Pools. This activity would be led by ESKOM.
  • Strategy of development of generation/transmission in the perspective of interconnected systems. This activity would be led by SONELGAZ.

Work Group 2 to be led by Senelec with the following activities;

  • Operational guidelines for interconnected systems. This activity would be led by Senelec/ESKOM.
  • Guidelines for best practices of operation and maintenance of electrical power systems. This activity would be led by ECG/CIE.

So far none of the groups delegated to provide the leadership in the objectives have begun the work assigned to them. It is only the work on the Africa grid map which has gone on quite satisfactorily. Two regional maps are still outstanding and these are those for East and Central Africa.

The other groups have promised to provide drafts of their works by April 30, 2007.

SONELGAZ was requested to host the workshop and the proposal is for it to be held in August 2007.

Another workshop is planned for South Africa in April 2008 to be hosted by ESKOM.

Sub-Theme for 2008 Congress

The committee suggested 2 sub-themes for the Nairobi congress and these are as follows:

  • Good governance as a benchmark for best practices for operations and maintenance of electric utilities
  • Access to good quality electricity for African People.

SC2

Agenda:

-Cross Border rural electrification

-African Funds Fund for Development of Rural Electrification (FADER)

-International Conference on Rural Electrification - Casablanca(Morocco),22nd to 24th October 2007;

-Proposal of the sub-theme and Round Table Theme for the 16th UPDEA congress to be held in Nairobi, Kenya in June 2008.

I. Cross Border Rural Electrification.

To enhance the execution of Cross Border Rural Electrification the Committee has made 5 recommendations.

II. African Funds Fund for Development of Rural Electrification (FADER)

As ofTermsof Reference (TDR) for the FADER feasibility studies has already approved by the UPDEA Members, the Committee recommends that the Scientific Committee launches as soon as possible the call for tenderssuch that a Consultant must chosen to realize these studies.

III. International Conference on Rural Electrification - Casablanca (Morocco), 22nd to 24th October 2007

The Committee thinks that it point of view and observations are well coming to improve the organization of this International Conference. After debates the Committee has added to the themes and for the workshop of the conference subjects on financing of rural electrification, (Financial Engineering, FADER).

To analyze the regional integration the Committee recommends that Cross Border Electrification must be included as a catalyst of sustainable development.

IV. The 16th UPDEA Congress - Nairobi, Kenya in June 2008.

In line with the UPDEA 16th Congress theme “ Good Governance Of National Power Sectors As A Key Factor For Realization Of Access To Electricity For All The Peoples Of Africa” the committee adopted:

Sub Theme

Good governance and optimization of investments for rural electrification

Round Table Theme:

Impact of political power on the implementation of electrical sector projects

SC3

Agenda:

  1. Adoption of the minutes of meeting in Luanda, Angola
  2. Review of committee’s report
  3. Study Committee Colloquium in Cape Town, South Africa
  4. Themes for THE 16TH UPDEA CONGRESS in Nairobi, Kenya, June 2008

1- Adoption of the minutes of the last meeting

The Luanda report was not made available for discussion and adoption due to the absence of both the Coordinator and the Reporter.

2 – Review of Committee reports

Members of the Study Committee were not happy with the Summary version of the Committee’s report captured in the Minutes of the 2nd Scientific Committee meeting of UPDEA in Luanda and the Working Document of the Third Meeting of the UPDEA Scientific Meeting in Abidjan. The report did not represent the true recordings of achievements of the Study Committee. The Committee therefore requests the UPDEA Secretariat to contact Mr. Albéric YAO YAO, CIE, for the correct report.

2.1: “Strategies for the improvement of the Revenue Management (Billing-Collection process)”

The presentation of utility experiences on this theme was started in Cotonou, (Benin) and continued in Luanda, Angola. The report of the working group meeting was discussed.

2-2: “Demand Side Management”

The report on this theme was discussed and requires some additional information on practical research and case studies. This gap will be filled after the colloquium in South Africa.

3 –Study Committee Colloquium in Cape Town, South Africa

In order to have all the required information and data to finalize the reports on the two themes, a time schedule was suggested as follows:

  • Organise a colloquium to seek and foster common approaches in dealing with key customer management issues by electrical energy utilities within the African continent to coincide with the Standardisation colloquium from the 28th - 29th May 2007 in Cape Town, South Africa
  • It was agreed that days for submission of colloquium papers will be as follows:
  • Topics and abstracts - 7th May 2007
  • Full papers/presentations – 14th May 2007

4 – Proposed Sub Theme for the 16th Congress