PRELIMINARY INFORMATION QUESTIONNAIRE
PERFORMANCE-BASED MANAGEMENT CONTRACT
ELECTRICITY SERVICES

Introduction

The purpose of this document is to provide an outline of preliminary information that will be required in order to prepare the first draft of contract documents for this project. This questionnaire involves detailed information gathering with respect to the current electricity operations, as well as the identification of plans and programs that should be carried out by the Operator under the management contract. The questions outlined below presume that precedents already in use (in World Bank funded projects) will form the basis for the RFP documents and, therefore, questions related to more fundamental contractual issues such as insurance, force majeure, suspension, termination and so on, have not been included in the questions listed below.

With respect to the list of questions which follows, the questions are intended to provide a comprehensive guide for the current operator with respect to the issues that must be dealt with in the preparation of the RFP documents. In many circumstances, the current operator may simply answer "no" to the previous possibilities outlined. However, the exercise is intended to draw the current operator's attention to the types of issues that the current operator should consider. This is particularly important in Part B where the exercise should result in a description of the services that the current operator wishes to have carried out by the Operator.

This document is divided into questions on the following areas:

  1. General Issues
  1. Scope of Services
  1. Performance Standards
  1. Funds Available to the Operator for Repair and Rehabilitation

PRELIMINARY INFORMATION QUESTIONNAIRE

QUESTION / RESPONSE
PART A – GENERAL QUESTIONS
There are a series of questions with respect to general issues that must be reviewed. These are as follows:
  1. Service Area

What are the specific boundaries of the service area (i.e. the geographical area which will be the subject of the contract with the Operator)?
Are rural AND urban areas included?
Will the service area change over the term of the management contract?
Is a map of the service area available?
Note: If one. is not already available, the current operator should develop a detailed map of the service area.
  1. Facilities
Note: The current operator should begin, as soon as possible, to provide a list of the facilities that are the subject of the contract. This is best accomplished with the collection of a series of plans of the various facilities. If this is not possible, the production of a list will suffice.
What facilities are to be the responsibility of the Operator?
Are all of the facilities that are located in the service area included?
Are all of the facilities located in the service area?
Does the current operator have:
  • a schematic map and statistics (e.g. routes, approximate length of network, etc.) with respect to all transmission lines, communications and dispatch facilities, primary distribution lines and meters?
  • a clear description of the service area for which the management contractor will be responsible?
  • a list of all transmission and distribution substations in the service area?
  • a list of all power generation facilities in the service area?
  • a list of all facilities used in the administration of the electricity system (e.g. office buildings, load dispatch center, customer service offices, etc.)?
  • any other physical facilities in the service area that the current operator operates or maintains?

  1. Extent of Management
Note: The simplest way to answer this section is to complete the questions listed below in Part B. Once the list of "services" that the current operator wishes the Operator to provide has been set out, the extent of the Operator's responsibilities will be shown
What will be the extent of the Operator's management of the facilities? For example, will the Operator have day-to-day responsibility for the day-to-day management of the facilities?
Will the Operator have the responsibility for:
  • the day-to-day operations and maintenance of the system?
  • improvements to the system?
  • expansion of the system?
  • billings and collections?
  • meter reading?
  • implementation of suggested improvements?

  1. Relationship of the Operator to the Workforce

Will the Operator hire the employees who are currently operating the
system?
Will the employees be seconded to the Operator?
Will the Operator have a right to hire, fire, or replace employees?
  1. Payment of the Operator

If the Operator will be paid a management fee, will the management fee be a fixed fee based on defined services or a fee with an upset limit such that the Operator submits expenses to justify costs? (Note: a fixed fee contract is recommended to avoid the administrative inefficiencies of submitting expenses.)
If the Operator will be paid an incentive fee, will the incentive fee be based on performance standards? If yes, then the performance standards and thresholds must be established.
Will there be a cap on either the incentive fee or the management fixed fee?
PART B - SCOPE OF SERVICES QUESTIONS
Scope of Services to be Provided
Note: From among the list set out below, the current operator should choose those Services that the Operator is to provide. Services not listed below but that the Operator is to provide should be added.
  1. Procurement

Will the Operator procure goods and services on behalf of the current operator?
If yes, would it be acceptable to have the Operator propose a procurement policy for the approval of the government?
Does the current operator have an existing procurement policy or law? Will it be binding on the Operator?
  1. Safety

What is the current status of occupational health and safety in the current operator? Are there policies or guidelines ?
Will the Operator be obliged to identify and correct any safety deficiencies of the facilities?
Will Operator be responsible for occupational health and safety issues?
Will the Operator be responsible for occupational health and safety of the employees?
Will the Operator be responsible for such issues as health and safety training, reports, meetings, and tracking of time lost to accidents?
  1. Equipment, Materials and Supplies

Is there an existing list of equipment, materials and supplies for the service area? Can a list be developed by the current operator?
Will the Operator have any responsibility for equipment, materials and supplies?
Will the equipment, materials and supplies be handed over to the Operator for management?
Will the Operator have a role in identifying the equipment, materials and supplies needs?
  1. Emergency Response

Does an emergency plan exist for the facilities?
Will the Operator have any responsibilities for development of such items as emergency response plans and programs to test the emergency response plans?
  1. Standard Operating Procedures

What is the current status of Standard Operating Procedures for the facilities?
Will the Operator have any responsibility to develop Standard Operating Procedures for the facilities?
If yes, what are the expected contents of the Standard Operating Procedures? For example, will the SOPs include:
  • staffing level for operation purposes?
  • skills required to carry out the SOPs?
  • schedules for various operating procedures?

Should the Operator prepare the Standard Operating Procedures for review and approval by the current operator?
Should the Operator provide training to the employees on Standard Operating Procedures?
Should the Operator review the skills mix of the staff and make recommendations in terms of numbers of staff, skill levels and reporting structure of the company?
  1. Operations and Maintenance Manuals

What is the current status of Operations and Maintenance Manuals for the facilities?
Should the Operator prepare Operations and Maintenance Manuals for the facilities?
If yes, should the Operator provide training to the employees on the Operations and Maintenance Manuals?
  1. Systems Improvements

What, if any, systems upgrades or implementation are required with respect to the operations and maintenance of the facilities? For example:
  • generation?
  • transmission?
  • distribution?
  • dispatch?
  • headquarters facilities?
  • others?

Should the Operator be involved in the development of these systems? Are there any in place or in development?
  1. Power Operations

Who will manage the supply of fuel, gas and any other source of energy? Is there any role for the Operator in this process?
Will the Operator have any role in managing the purchase of power from other operators? Or other countries?
Are there any miscellaneous tasks with respect to fuel and gas management (for example, tankers, etc.) which the Operator might carry out?
Will the Operator have any role in power generation plants? For example, will the Operator have a role in:
  • managing hydropower installations?
  • metering quantities of fuel and gas entering and the quantities of power exiting in the thermal generation facilities?
  • advice as to new technologies?
  • inspecting
  • deficiencies in equipment or identifying repairs necessary for the generation of power at the facilities?
  • undertaking repairs and correction of deficiencies in the power generation facilities?
  • others?

Will the Operator have any responsibility for the power transmission and distribution of electricity to the customers? For example, will the Operator have any responsibility for:
  • monitoring the constancy of supply to customers?
  • monitoring the distribution system for the purpose of improving the efficiency of the grid and the detection of illegal connections?
  • monitoring technical and non-technical losses and reducing them to an agreed target level? Should focused incentives be established?
  • installing service connections?
  • carrying out extensions of the electricity distribution network to
  • new customers?
  • managing transmission and distribution substations throughout the grid?
  • day-to-day repairs of the power transmission and distribution system?
  • others?

Are there power interconnections with neighboring countries? If so, will be the Operator be responsible for their operation and maintenance?
  1. Power Maintenance

Is a computerized maintenance management system in place?
Will the Operator have any responsibility with respect to the implementation or management of a preventive maintenance management system?
Will the Operator develop a preventive maintenance program for the facilities?
If so, will the preventive maintenance program include:
  • maintenance management for vehicles and equipment?
  • maintenance management with respect to warranties for the facilities?
  • scheduling for maintenance activities?

Will Operator be required to develop a computerized maintenance management system?
  1. Repairs and Rehabilitation of the System

Will the Operator have a role in the repair and rehabilitation of the electricity system
If yes, will the Operator carry out an initial inspection of the system to examine the condition of the infrastructure?
Does a condition survey of the facilities already exist?
Will the Operator be obliged to correct the deficiencies in the system?
What are the goals, if any, of a repair and rehabilitation of the system? Are they, for example, to:
  • correct deficiencies in the system?
  • decrease technical losses?
  • increase continuity of supply?
  • repair and replace electricity meters?
  • reduce the response time for repairs?
  • others?

Is there a parallel capital investment program being carried out at the same time? If yes, will the Operator have any role in that process?
How are the extensions to the distribution and transmission grid currently handled? What is the distinction made between:
  • capital improvement extensions;
  • extensions carried out as part of the operating budget; and
  • extensions paid for by the customer?

  1. Billing, Collection and Customer Service

Will the Operator have a role with respect to various aspects of improving the services to customers and the billing and collections process?
Is there a computerized system for billing in place? If not, will the Operator have a role in developing and implementing a computerized system for billing?
Is there a computerized system for tracking collections and receivables? If not, will the Operator have a role in developing and implementing a computerized system for tracking collections and receivables?
Is there a computerized accounting system in place? Is there any role for the Operator in managing or implementing one?
Is there a computerized system in place for tracking customer complaints, requests and response times? Is there any role for the Operator in providing such a system?
Will the Operator be responsible for the reading of meters?
Will the Operator have any responsibility for managing information with respect to the reading of meters (i.e., customer information)?
Will the Operator have any responsibility for managing the calibration of customer meters?
Will the Operator be responsible for developing and implementing a plan for ensuring that customer meters are:
  • accurate?
  • in suitable locations?
  • free of problems?
  • registered?

Will the Operator be responsible for issuing and distributing bills to customers?
Will the Operator be responsible for responding to reports of malfunctioning meters?
Will the Operator have any responsibility for resolving customer complaints?
Will the Operator have any responsibility for improving the billing system with respect to improving the metering of the power distributed (i.e., dealing with administrative losses)?
Will the Operator have any responsibility for collections? For example, will the Operator have responsibility for:
  • collecting amounts due from electricity bills? From low voltage and medium voltage clients? High voltage clients? From refugees camps, municipalities and administrations ?
  • identifying and recording outstanding accounts?
  • developing procedures for collecting accounts receivable?
  • others?

Will the Operator have any responsibility for customer service? For example will the Operator:
  • deal with customer complaints?
  • deal with customer requests with respect to such issues as cancellation, changes in service or change in accounts?
  • others?

Will the Operator have any responsibility with respect to connection or disconnection of customer services? Can the Operator legally be given this responsibility?
Will the Operator have any responsibilities with respect to public information or public information programs with respect to such issues as energy conservation, improvements in system operation, etc.?
  1. Privatization of the Power Utility

What role if any will the Operator play in the privatization process?
Will the Operator be allowed to participate in bidding for the utility?
  1. Reporting Obligations/Meetings

Will the Operator be obliged to provide regular reports to the current operator on matters related to the contract? If yes, what types of reports ought to be required? Who will the Operator report to?
How often will the Operator meet with the current operator representative?
  1. Development and Planning Control

What is the current role of the utility with respect to reviewing development and planning processes and impacts on the power system?
What role will the Operator have in that regard?
  1. Public Institutions

How are services provided to public institutions (e.g. municipal, street lighting, municipalities)?
What role will the Operator have in providing services to public institutions?
  1. Other Services and Facilities

Are there any other services provided or facilities operated by the utility which the Operator will provide or operate?
PART C – PERFORMANCE STANDARDS
Note: The development of performance standards should proceed only after the list of services has been developed in accordance with Part B of this questionnaire. Once the list of services is established, then a performance standard should be developed for each service that the Operator is to provide. The performance standards should be set for each year of the contract term and the best way to articulate the performance standards is through a chart that sets out the lists of the services and the performance standard for each service.
What technical specifications are to be applied in any repairs and rehabilitation of the facilities?
What customer service standards are to be applied?
Are there general requirements that the client intends to apply to this contract which can be set out in the contract?
Will there be any liquidated damages or withholding for failure to meet performance standards (i.e. in addition to performance incentives?) If yes, then for each service and each performance standard, the question should be asked whether a corresponding clause for withholding and liquidated damages is necessary.
PART D – FUNDS AVAILABLE TO THE OPERATOR FOR REPAIR AND REHABILITATION
Note:These questions will be necessary if there are to be funds available to the Operator for repair and rehabilitation for the contract.
  1. Funds Available to the Operator for Repair and Rehabilitation

Will the Operator be responsible for procurement if there are to be funds available for repair and rehabilitation? If yes, what will the applicable rules be?
Should the Operator submit an annual plan regarding any such funds setting out the expenditures to be made from any particular year?
Should a list of the eligible expenditures under any such fund be developed? Sample documents already exist for other projects.
What are the key items that should be identified as eligible expenditures? It will be important to identify clearly in the documents the distinction between capital and operating costs for any such fund
  1. Accounts and Audits

Will the Operator be responsible for upgrading the accounting system to enable timely audits?
Is the Operator expected to establish an upgraded management information system?

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