nigeria power sector program annual work plan

NIGERIA POWER SECTOR PROGRAM

ANNUAL WORK PLAN (FY20) October 1, 2019 – September 30, 2020 DISCLAIMER:

Deloitte Consulting LLP prepared this publication for review by the United States Agency for International Development. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

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NIGERIA POWER SECTOR PROGRAM ANNUAL WORK PLAN (FY20)

IDIQ Contract No. 720-674-18-D-00003 Power Africa Expansion

Task Order No. 720-674-18-F-00003 Nigeria Power Sector Program (PA-NPSP)

USAID | Southern Africa

Contracting Officer’s Representative: David Rogers

ACKNOWLEDGEMENT:

Deloitte Consulting LLP produced this document for review by the United States Agency for International Development. It was prepared under Task Order No. 01: The Nigeria Power Sector Reform Program (the “Task Order”) of the Power Africa Indefinite Delivery, Indefinite Quantity (“IDIQ”) Contract No. 720-674-18-D-00003 implemented by Deloitte Consulting LLP.

Cover photo by Power Africa-Nigeria Power Sector Program

PA-NPSP ANNUAL WORK PLAN (FY20) i

CONTENTS INTRODUCTION ............................................................................................................................................................ 2

Program Overview ....................................................................................................................................................... 2

Power Africa, USAID/Nigeria, and Prosper Africa ............................................................................................... 2

Program Results Framework ...................................................................................................................................... 3

Principal Themes ........................................................................................................................................................... 4

Program Staffing ............................................................................................................................................................. 5

Work Plan Structure .................................................................................................................................................... 6

TECHNICAL ACTIVITIES ............................................................................................................................................... 8

Outcome 1 | Increase Private Sector Investment (Energy Resources: Gas Supply) ..................................... 8

Outcome 1 | Increase Private Sector Investment (On-Grid Generation) .................................................... 12

Outcome 2 | Facilitate Connections (Off-Grid) .................................................................................................. 21

Outcome 3 | Improve the Enabling Environment (Enabling Environment) ................................................... 31

Outcome 4 | Promote Improved Liquidity (Distribution) ................................................................................ 38

PROJECT MANAGEMENT OFFICE ........................................................................................................................... 46

Partnerships, Alliances, and Coordination ............................................................................................................ 46

Communications and Outreach .............................................................................................................................. 49

Gender and Social Inclusion ..................................................................................................................................... 51

Environmental Compliance and Social Impact ..................................................................................................... 53

Results Management ................................................................................................................................................... 55

FINANCE AND OPERATIONS OFFICE .................................................................................................................. 60

Operations .................................................................................................................................................................... 60

Project Staffing ............................................................................................................................................................. 60

APPENDICES .................................................................................................................................................................... 62

Appendix A: PA-NPSP Contractual Deliverables (FY20) .................................................................................. 62

Appendix B: PA-NPSP Activity Gantt Charts (FY20) ......................................................................................... 64

PA-NPSP ANNUAL WORK PLAN (FY20) ii

TABLES

Table 1: Overview of Outcomes, Technical Areas, and Interventions ................................................................. 3 Table 2: Intervention 1.01 Activities and Deliverables (Energy Resources: Gas Supply) ............................... 10 Table 3: Intervention 1.02 Activities and Deliverables (Energy Resources: Gas Supply) ............................... 11 Table 4: Intervention 1.03 Activities and Deliverables (On-Grid Generation) ................................................ 13 Table 5: Intervention 1.04 Activities and Deliverables (On-Grid Generation) ................................................ 14 Table 6: Intervention 1.05 Activities and Deliverables (On-Grid Generation) ................................................ 16 Table 7: Intervention 1.06 Activities and Deliverables (On-Grid Generation) ................................................ 17 Table 8: Intervention 1.07 Activities and Deliverables (On-Grid Generation) ................................................ 19 Table 9: Intervention 1.08 Activities and Deliverables (On-Grid Generation) ................................................ 20 Table 10: Intervention 2.01 Activities and Deliverables (Off-Grid) .................................................................... 25 Table 11: Intervention 2.02 Activities and Deliverables (Off-Grid) .................................................................... 28 Table 12: Intervention 2.03 Activities and Deliverables (Off-Grid) .................................................................... 29 Table 13: Intervention 3.01 Activities and Deliverables (Enabling Environment) ............................................ 33 Table 14: Intervention 3.02 Activities and Deliverables (Enabling Environment) ............................................ 34 Table 15: Intervention 3.03 Activities and Deliverables (Enabling Environment) ............................................ 35 Table 16: Intervention 3.04 Activities and Deliverables (Enabling Environment) ............................................ 36 Table 17: Intervention 4.01 Activities and Deliverables (Distribution) .............................................................. 41 Table 18: Intervention 4.02 Activities and Deliverables (Distribution) .............................................................. 43 Table 19: Intervention 4.03 Activities and Deliverables (Distribution) .............................................................. 44 Table 20: Intervention PMO.01 Activities and Deliverables (Partnerships, Alliances, and Coordination) 48 Table 21: Intervention PMO.02 Activities and Deliverables (Communications and Outreach) ................... 50 Table 22: Intervention PMO.03 Activities and Deliverables (Gender and Social Inclusion) .......................... 52 Table 23: Intervention PMO.03 Activities (Gender and Social Inclusion: Technical Activity Matrix) ......... 53 Table 24: Intervention PMO.04 Activities and Deliverables (Environmental Compliance and Social Impact).............................................................................................................................................................................................. 54 Table 25: Intervention PMO.05.01 Activities and Deliverables (Results Management: ME&L) .................... 56 Table 26: Intervention PMO.05.02 Activities and Deliverables (Results Management: Knowledge Management) ..................................................................................................................................................................... 57 Table 27: Intervention FOO.01 Activities and Deliverables (Finance and Operations) ................................. 60

FIGURES

Figure 1: PA-NPSP Distribution Framework............................................................................................................. 39 Figure 2: Civil Society Engagement .............................................................................................................................. 47

PA-NPSP ANNUAL WORK PLAN (FY20) iii

ACRONYMS Acronym Definition AEDC Abuja Electricity Distribution Company AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank ATC&C Aggregate technical, commercial, and collection BPE Bureau of Public Enterprises DISCO Distribution company EAEP East Africa Energy Program EEI Energizing Economies Initiative EKEDC Eko Electricity Distribution Company EMRC Energy Market and Regulatory Consultants EMS/SCADA Energy management system/supervisory control and data acquisition FGN Federal Government of Nigeria GENCO Generation company GIZ Deutsche Gesellschaft fur Internationale Zusammenarbeit (German Society for International

Development) IE Ikeja Electricity Distribution Company IRP Integrated Energy Resource Plan IMAS Interconnected Mini-grid Acceleration Scheme IPP Independent Power Producer KPIs Key Performance Indicators MAP Meter Asset Provider MAS Mini-grid Acceleration Scheme ME&L Monitoring, Evaluation, and Learning MoF Ministry of Finance MoP Ministry of Power NBET Nigerian Bulk Electricity Trading Company NDPHC Niger Delta Power Holding Company NEMSA Nigeria Electricity Management Service Agency NEP Nigeria Electrification Program NERC Nigerian Electricity Regulatory Commission NESI Nigeria Electricity Supply Industry NGFCP Nigerian Gas Flare Commercialization Program NIPP Nigerian National Integrated Power Project NLNG Nigeria Liquified Natural Gas Limited PA-NPSP Power Africa Nigeria Power Sector Program PAOP Power Africa Off-grid Project PATRP Power Africa Transactions and Reforms Program PATT Power Africa Transaction Tracker PHEDC Port Harcourt Electricity Distribution Company PIEE Programmatic Initial Environmental Examination PIP Performance Improvement Plan PMO Project Management Office PPA Power Purchase Agreement PSRP Power Sector Recovery Program REA Rural Electrification Agency REAN Renewable Energy Association of Nigeria RFP Request for Proposals SAEP Southern Africa Energy Program SHS Solar home system

PA-NPSP ANNUAL WORK PLAN (FY20) iv

Acronym Definition TBD To be determined TCN Transmission Company of Nigeria USAID United States Agency for International Development WAEP West Africa Energy Program WB/WS Willing Buyer/Willing Seller

PA-NPSP ANNUAL WORK PLAN (FY20) 1

INTRODUCTION


INTRODUCTION PROGRAM OVERVIEW

Deloitte Consulting LLP was awarded the Nigeria Power Sector Program (PA-NPSP) under Task Order No. 01 of the Power Africa Indefinite Delivery, Indefinite Quantity (IDIQ) Contract No. 720-674-18-D-00003. PA-NPSP is a five-year program with a period of performance from April 2, 2018, to March 31, 2023.

This document sets out PA-NPSP’s annual work plan from October 1, 2019, through September 30, 2020, aligned with the U.S. Government fiscal year 2020 (FY20), continuing the program’s first year of work to promote investment in the energy sector to increase availability, reliability, and access to electricity in Nigeria.1 By 2023, the program has a target to enable 10,000 MW of new/rehabilitated generation capacity and 3,000,000 connections.

POWER AFRICA, USAID/NIGERIA, AND PROSPER AFRICA

PA-NPSP is the signature initiative of Power Africa in Nigeria. Launched in 2013, Power Africa is a U.S. Government-led partnership coordinated by the U.S. Agency for International Development (USAID). PA-NPSP supports Power Africa’s mandate to Increase Access to Reliable, Affordable and Sustainable Power through Power Africa’s three strategic pillars: New Power Generation Capacity, Increased Electricity Connections and Improved Enabling Environment. PA-NPSP promotes Power Africa aims by contributing to comprehensive reform within Nigeria’s power sector, addressing gas-to-power challenges, competitive procurement of clean and conventional energy, regulatory and policy reforms to foster greater sector transparency and private investment, utility distribution reform, and off-grid electricity access.

In addition, PA-NPSP supports USAID/Nigeria’s Country Development Cooperation Strategy (2015-2021) goal, Reduced Extreme Poverty in a More Stable, Democratic Nigeria, under Development Objective 1, Broadened and Inclusive Growth, Intermediate Result 1.3, Energy Access Increased. PA-NPSP also incorporates both USAID’s broad goal of self-reliance and USAID/Nigeria’s specific development goals across its technical assistance framework. USAID defines self-reliance as “…a country’s ability to plan, finance, and implement solutions to address its own development challenges.” USAID’s Journey to Self-Reliance (J2SR) Roadmap for Nigeria uses metrics such as government capacity, economic policy and inclusive development.

Finally, PA-NPSP supports the U.S. Government Prosper Africa Presidential Initiative, with the goal to substantially increase two-way trade and investment between the United States and Africa. In line with this aim, PA-NPSP assists partners to assess and address energy sector policy, regulatory, and

1 The program’s first year was implemented from April 2, 2018, through September 30, 2019.

Power Africa is a U.S. government-led partnership that brings together the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa. Power Africa’s goal is to add more than 30,000 MW of new electricity generation capacity and connect 60 million new homes and businesses to power by 2030. To date, Power Africa has helped bring 124 power generation deals to financial close with a generation capacity of over 10,300 MW. These 124 deals are valued at over $20 billion. Of these deals, 56 are operational and generating over 3,400 MW of new and more reliable electricity. Since its launch in 2013, Power Africa has connected 14.8 million homes and businesses to on- and off-grid solutions, bringing first time electricity to 68 million people across sub-Saharan Africa.


logistical trade barriers; builds the capacity of market regulators and other actors; supports reforms that are friendly to private enterprise and competitiveness; strengthens supply and value chains; promotes international standards; and promotes the mobilization and free flow of capital. Furthermore, PA-NPSP understands that one of the fundamental challenges in the power sector is unlocking private capital investment opportunities and is committed to strong collaboration with the U.S. International Development Finance Corporation and Prosper Africa partners to advance the common objective of enabling long-term sustainable investment in the sector.

PROGRAM RESULTS FRAMEWORK

PA-NPSP measures objective progress across four program outcomes:

• Outcome 1 (OC1): Increase Private Sector Investment in Gas Supply, Power Generation, and Transmission

• Outcome 2 (OC2): Facilitate Off-grid Connections to Cleaner Power Supply • Outcome 3 (OC3): Improve the Enabling Environment for Private Sector Participation in the

Power Sector • Outcome 4 (OC4): Promote Improved Liquidity throughout the Energy Sector

Under the outcomes, PA-NPSP has defined five thematic technical areas to highlight the technical work that is carried out: (1) Energy Resources: Gas Supply, (2) On-Grid Generation, (3) Off-Grid, (4) Enabling Environment, and (5) Distribution.

In FY20, PA-NPSP will drive toward achieving these outcomes and technical results by implementing a series of strategically defined interventions (activities), including working to bring transactions to financial close, unlocking additional financing for on-grid and off-grid projects, coordinating with local resources, and building human and institutional capacity at key Federal Government of Nigeria (FGN) entities.

PA-NPSP sets out each outcome, its related technical areas, and contributing interventions in the table below.

Table 1: Overview of Outcomes, Technical Areas, and Interventions

Technical Areas and Interventions

OC

1:

Incr

ease

Pri

vate

Sec

tor

Inve

stm

ent

Energy Resources: Gas Supply Intervention 1.01: Support the Nigerian Gas Flare Commercialization Program (NGFCP)

Intervention 1.02: Support Nigeria Liquified Natural Gas Limited (NLNG) on development of Nigeria’s gas and LNG potential

On-Grid Generation Intervention 1.03: Maintain an evolving transaction assistance plan to achieve PA-NPSP goals by identifying, segmenting, and prioritizing a pipeline of priority transactions for support

Intervention 1.04: Provide technical and transaction assistance to FGN to support the privatization of Nigerian National Integrated Power Project (NIPP) generation companies (assets) to unlock 4,000 MW of capacity

Intervention 1.05: Provide advisory support to Bureau of Public Enterprises (BPE)

Intervention 1.06: Provide transaction advisory support to Independent Power Producers (IPPs)

Intervention 1.07: Provide technical support to Nigerian Bulk Electricity Trading Company (NBET) in structuring Power Purchase Agreements (PPAs) for bankable commercial transactions

Intervention 1.08: Provide transaction advisory support to Infrastructure Concession Regulatory Commission (ICRC) on implementation of power asset transaction


Technical Areas and Interventions O

C2:

Fa

cilit

ate

Off-

G

rid

Con

nect

ions

Off-Grid Intervention 2.01: Enhance market transparency, information, and tools to attract and support stakeholders interested in the off-grid sector and guide their response to growing demands

Intervention 2.02: Unlock financing for deployment of off-grid solutions by streamlining and expanding access to innovative financing mechanisms and supporting transactions

Intervention 2.03: Develop capacity across the off-grid marketplace

OC

3:

Impr

ove

the

Ena

blin

g E

nvir

onm

ent

Enabling Environment Intervention 3.01 (Cross-Sectoral Initiative): Support transformational energy initiatives (Presidential Power Initiative, Lagos State Integrated Energy Resource Plan)

Intervention 3.02 (Cross-Sectoral Initiative): Support Nigeria Electricity Supply Industry leadership (Office of the President, Ministry of Power, Ministry of Finance, Central Bank of Nigeria)

Intervention 3.03: Provide technical assistance to Nigerian Electricity Regulatory Commission (NERC)

Intervention 3.04: Provide technical assistance to Transmission Company of Nigeria (TCN)

OC

4:

Pro

mot

e Im

prov

ed

Liqu

idit

y

TECHNICAL AREA: Distribution Intervention 4.01: Provide assistance to the Meter Asset Provider (MAP) program

Intervention 4.02: Develop and implement a standardized approach to the development of performance improvement programs for selected DISCOs

Intervention 4.03: Prepare and implement capacity building programs for Nigeria-wide technical assistance program for DISCOs

PA-NPSP will provide Power Africa and USAID/Nigeria with regular performance reports, financial reports, and similar documentation to report on implementation of these and other interventions in this work plan. See Appendix A: PA-NPSP Contractual Deliverables (FY20) for a detailed report schedule.

PRINCIPAL THEMES

The following principal themes will guide and support PA-NPSP operating activities and initiatives during the coming year:

1. Holistic and Cohesive Sector Planning: Donor and FGN alignment on a cohesive development plan is crucial to promote serious progress in the power sector. Systemic issues significantly impede progress in the power sector, as profiled below, and demand that the PA-NPSP team effectively build on Nigeria’s master planning efforts, including the Power Sector Recovery Program (PSRP), through coordinated FGN and donor support to make Nigeria’s development goals a reality. Our support focuses on advancing a holistic approach to phasing sector development based on an objective understanding of critical issues and a comprehensive action plan to address them.

2. Private Sector Engagement: Gaining commitment from the private sector, including project developers, privatized generation companies (GENCOs) and distribution companies (DISCOs), local and international financial institutions, investors, gas companies, and equipment providers, is essential to PA-NPSP’s success. Core to our approach is frequent, two-way consultation and coordination with these stakeholders to identify challenges and priorities, build support and buy-in, and better inform PA-NPSP interventions.


3. Local Support: Drawing on our ongoing work in the sector, we engage our consultants with the DISCOs, GENCOs, and FGN agencies that are most able to drive the reform process and promote long-term sustainability. Whenever possible, we rely on local Nigerian advisors with deep expertise and broad sector networks to support key FGN stakeholders, with an emphasis on building human and institutional capacity that will promote sustainable, long-term sector progress. Through capacity building and policy development, we support some of our key stakeholders, such as Rural Electrification Agency (REA), Nigerian Electricity Regulatory Commission (NERC), and the Renewable Energy Association of Nigeria (REAN) to assess the environmental and social impacts of their energy investments, mitigate risks, and strengthen their community engagement strategies with support for communications planning and practices that promote local outreach and information sharing.

4. Flexibility and Agility: Building from our work over the past 18 months, Deloitte will work to scale-up program activities from FY18/19. Our established infrastructure enables us to respond to changing political and economic conditions by mobilizing local and international advisors and adjusting team structures and resources as required. For example, the political leadership transition of the February 2019 presidential elections required the Deloitte team to be flexible in responding to the technical assistance needs and delivery approach of a potentially new set of core stakeholders, including government ministries and agencies.

5. Enabling Environment: Building on momentum to improve the power sector ecosystem in Nigeria, PA-NPSP will leverage relationships established with both the FGN and private sector partners through delivery units (e.g. tariff advisory and CYPRESS team) to unlock energy sector potential through policy and regulatory reform and capacity building. PA-NPSP’s robust cross-sectional technical assistance will support, for example, DISCO performance improvement and help reform the sector liquidity by supporting the update of the current tariff model, which in turn will result in increased profits and financial health with better billing systems and improved customer relationship management.

6. Cross-Cutting: Relationship building, donor coordination, stakeholder communications, gender, environment, and community engagement are integral parts of each intervention. We support Power Africa’s continued leadership of donor working groups, where appropriate, to integrate planned interventions with other donors working in the same areas. We foster enhanced roles for women in power sector institutions by promoting skill development, better hiring practices, increased access to finance for female entrepreneurs, and policy reforms to incorporate gender into energy planning. We will continue to assess technical, and financial aspects of specific projects that PA-NPSP supports. In addition, strengthening civil society engagement on key sector reforms and policies is an integral part of each program outcome, and PA-NPSP has and will continue to engage with civil society advocacy and power-specific organizations, including REAN, Solar Sister, and Spaces for Change. Moreover, our team will continue to leverage our local teaming partners, including Deloitte Nigeria, Energy Market and Regulatory Consultants (EMRC) and Nextier Power, to drive a variety of engagement campaigns.

PROGRAM STAFFING

Under the senior leadership of PA-NPSP’s Chief of Party, Deputy Chief of Party (Technical), and Deputy Chief of Party (Finance and Operations), PA-NPSP deploys strategic management advisors to lead work across the four outcomes. These Outcome leaders are responsible within their areas of work for managing communications, reporting requirements, and delivery of technical task order activities. This ownership approach is standardized across PA-NPSP to promote coordination, alignment of efforts, and consistent communication to project leadership and USAID. Supporting the Outcome teams, PA-NPSP utilizes a centralized Project Management Office (PMO) to lead and manage cross-cutting activities, including


partnerships, alliances, and coordination; communications and outreach; gender and social inclusion; environmental compliance and social impact; and program results management.

In addition, PA-NPSP has provided dedicated advisors working on specific scopes for counterparts in key government institutions, including the Ministry of Finance (MoF), NERC, REA, Transmission Company of Nigeria (TCN), and Niger Delta Power Holding Company (NDPHC). These advisors provide critical transaction and technical assistance to support institutional leadership and foster a close and collaborative relationship with PA-NPSP. These advisors and PA-NPSP’s strong sector contacts help counterparts and other stakeholders to take the critical steps to put Nigeria’s power sector on the road to financial viability. PA-NPSP also has engaged local staff with access to high-level officials in the power sector, based on their many years of experience in the sector.

WORK PLAN STRUCTURE

The PA-NPSP Annual Work Plan (FY20) is organized according to the program’s four outcomes, with related technical areas, interventions, and activities under each outcome.

Following the detailed technical activities, the work plan sets out the program’s centralized project management and cross-cutting services and finance and administrative support services. The appendices provide supplemental detail on contractual deliverables and a Gantt chart with each outcome’s interventions.


TECHNICAL ACTIVITIES


TECHNICAL ACTIVITIES OUTCOME 1 | INCREASE PRIVATE SECTOR INVESTMENT (ENERGY RESOURCES: GAS SUPPLY)

Technical Context, Challenges, and Assumptions

Nigeria has produced natural gas along with oil in the Niger Delta region since oil production first began in the country in 1958. Despite an emphasis on oil exploration and production, Nigeria has also discovered an additional 184 trillion cubic feet2 of gas reserves, that with gas-targeted exploration could reach as high as 600 trillion cubic feet.

The primary route to monetization of gas within Nigeria is the power sector, comprised of roughly 85 percent gas-fired power generation. However, even with an apparent abundance of gas resources, gas-fired power generation in Nigeria is severely constrained. The underlining cause of ongoing gas-to-power challenges is the lack of financial liquidity in the gas-to-power revenue cycle primarily caused by insufficient revenue being collected by DISCOs and limited funds from revenue collection flowing back to gas-fired electricity generation companies and on to gas suppliers.

While there are many challenges to address within Nigeria’s gas-to-power chain, the inability of GENCOs to pay gas invoices reliably is a key issue and a non-starter for requirements such as activation of gas supply agreements. Neither party is interested in activating an agreement that they know will likely default under current sector commercial conditions. This situation in turn impacts investment in upstream exploration and production, as well as midstream infrastructure investments such as pipelines and processing facilities. As illiquidity issues remain at the forefront of discussions with gas stakeholders, in the near-term PA-NPSP will focus resources on downstream interventions that will have positive implications on revenue collections and payments to the gas sector.

In addition to the financial liquidity constraint, the mixed currency denomination embedded within the gas-to-power value chain is a major roadblock in gas supply because of the burden it places on GENCOs in the form of foreign exchange risk. Gas supply agreements are denominated in U.S. dollars while the remainder of power-purchase agreements (PPAs), vesting contracts and consumer tariffs are denominated in Naira. This discrepancy in currency demonization makes power producers vulnerable to foreign exchange risk and can affect their ability to pay gas invoices when the value of Naira changes. Resolving this issue will require buy-in from both parties, in addition to political will, which to date has been unsuccessful.

The Nigerian Gas Flare Commercialization Program (NGFCP) is a flagship program that USAID has supported since late 2016 in partnership with the FGN, the World Bank, and DFID. Aside from the many benefits of the program including potential power derived from proposed gas to power projects and the estimated US $1 billion per year lost to flaring of gas, the Nigeria Gas Flare Commercialization program will have a positive effect on the citizens and environment of Nigeria through a reduction of CO2 emissions. NGFCP offers additional potential to create local employment for Nigerians and new export

2 BP Statistical Review 2018 Report

Energy Resources: Gas Supply

Improved gas supply to meet national demand for the power sector

FY18/19 Achievements

• Increased Stakeholder understanding of the gas sector challenges

• Supported the Nigerian Gas Flare Commercialization Program (NGFCP) and its Request for Qualification (RFQ) process

• Conducted an assessment on the Barriers to Bankable Gas Supply Agreements with industry stakeholders

FY20 Overview

Focus Areas • Facilitate gas supply to power generation • Support Round 1 of the Nigeria Gas Flare

Commercialization Program to completion

Primary Stakeholders Ministry of Petroleum, Department of Petroleum Resources


and contract opportunities for U.S. and western producers of energy equipment and services in support of local flare capture projects during implementation and ongoing project operations.

PA-NPSP has been providing technical and transaction advisory support on the NGFCP by working closely with the Federal Ministry of Petroleum Resources on the following key components:

• Bidder’s prequalification process • Bidder’s pre-bid conference conducted in early 2019 • Development and finalizing Request for Proposals (RFP) documents • Development of supporting Commercial Agreements • Support to the launch of the RFP and supporting Bidders’ Conference • Support to the development of the bid evaluation criteria and RFP evaluation process

In FY18/19, PA-NPSP supported the program to develop selection criteria and conduct a pre-qualification assessment that resulted in the selection of 205 pre-qualified bidders. PA-NPSP also supported the pre-qualified bidder’s conference, designed to provide additional program information and address concerns of bidders at the pre-qualification stage.

In FY20, PA-NPSP gas sector technical assistance will focus on continuing support to NGFCP, specifically supporting the program during the commercial agreement stage and RFP. Targeted transaction assistance may be provided in finalizing gas supply agreements where current inconsistencies are a constraint to increasing generation capacity.

In tandem with technical advisory assistance, PA-NPSP will support key stakeholders, such as the Ministry of Petroleum Resources and the Nigeria National Petroleum Corporation, to become better informed about and sensitive to cross-cutting gender, social, and environmental perspectives and impacts that a program like NGFCP may have. PA-NPSP will assist this effort through activities such as participating in the design and implementation of research and training initiatives on social inclusion and sexual harassment and provide opportunities for managers to learn about model policies and practices to promote community engagement. PA-NPSP will also support activities related to entry-level female staff participation in company sponsored tailored professional development courses, and the opportunities to contribute to newsletters and other publications that highlight women’s roles, careers and accomplishments in the energy sector.

Intervention 1.01: Support the Nigerian Gas Flare Commercialization Program (NGFCP)

Objectives:

• Reduce gas flaring in the Niger Delta region • Reduce carbon emissions into the atmosphere • Improve the health and living conditions for the people of the Niger Delta region • Provide opportunities for flare gas to be used in the production of MWs (Gas to Power) • Provide revenue opportunities for the FGN auctioning of gas flare sites and wells • Create local employment and new business opportunities for equipment and services during

construction and operational phases of project development

The NGFCP is a flagship program of USAID in partnership with the FGN, the World Bank, and DFID The NGFCP program is expected to result in additional power derived from proposed gas-to-power projects, reduction in the estimated US $1 billion annually lost to flaring of gas, and positive effects on the Nigerian environment through a reduction of CO2 emissions.


PA-NPSP will support the NGFCP throughout FY20 (upon request and pending available resources) by working closely with the Ministry of Petroleum Resources and the Department of Petroleum Resources on the following key components:

• Support the development of Commercial Agreements • Support the development and finalizing of the RFP for the identified gas flared sites • Support the launch of the RFP and the bidders conference (February 2020) • Support the development of the RFP evaluation process

Table 2: Intervention 1.01 Activities and Deliverables (Energy Resources: Gas Supply)

Activity Start - End Date Sub-Activities

Advisory support on NGFCP FY20.1.01.01

10/01/19 –03/30/20

1. Work with the Ministry of Petroleum Resources to finalize the commercial documents, flare gas data, and RFP that will be included in the issuance of RFP

2. Provide support for the Bidders’ Conference 3. Provide limited technical assistance to Ministry of Petroleum

Resources/Department of Petroleum Regulation as requested and pending available resources

Technical Deliverables N/A [Activity summary included in program quarterly progress reports and annual report]

Intervention 1.02: Support Nigeria Liquified Natural Gas Limited (NLNG) on development of Nigeria’s gas and LNG potential

Objective:

• Leverage experience and expertise to foster relationships and alliances between key stakeholders to facilitate gas industry growth and introduce LNG as a pivotal alternate solution to the Gas-to-Power challenges faced in the sector.

One of the primary obstacles facing energy access in Nigeria today is the lack of an adequate and reliable supply of natural gas to the power sector. Despite various policy directives and interventions to enhance the supply of gas to power, inefficiency persists. To resolve the gas to power constraint, the NLNG intends to undertake an assessment in view of an integrated strategy for the development of Nigeria's LNG potential, capitalizing on its experience and capabilities.

NLNG approached PA-NPSP to support the initiative with a market assessment and a workshop that will provide deeper insights into the challenges and opportunities in Nigeria’s Gas and LNG value chain and identify where NLNG can intervene to address and alleviate some of these challenges. The objective is to leverage PA-NPSP experience and expertise to foster relationships and alliances between key stakeholders to facilitate growth in the gas industry and introduce LNG as a pivotal alternate solution to the Gas-to-Power challenges faced in the sector.

PA-NPSP’s in-depth knowledge of the Nigeria power sector will be a useful resource in the success of the market assessment and workshop. PA-NPSP planned activities area include:

• Market Study: Assist NLNG to scope a market study focused on domestic LNG market potential, including the domestic market energy profile, demand centers, infrastructure capacity and bottlenecks, opportunity for LNG-to-Power solutions in the short, mid and long term, fiscal policies and its influence in the gas industry and other necessary insights required to make the case for the market. PA-NPSP’s role will be to advise NLNG on a term of reference, identify qualified companies and introduce NLNG to TDA for possible funding.


• Stakeholder Identification: Leverage existing alliances with private-sector investors, LNG entities and FGN entities, to engage with the key stakeholders who have advanced interest in the LNG supply to the domestic market.

• Workshop: Hold workshop led by an international LNG industry expert to highlight the methodology and successes recorded in small-scale LNG and LNG-to-Power projects in other countries.

Table 3: Intervention 1.02 Activities and Deliverables (Energy Resources: Gas Supply)

Activity Start – End Date Sub-Activities

Technical advisory support to NLNG Limited on development of Nigeria’s gas and liquified natural gas potential FY20.1.02.01

04/01/20 –09/30/20

1. Broker market study to assess domestic market demand for LNG (gas to power)

2. Support NLNG investor workshop

Technical Deliverables 09/30/20 A. Workshop material


OUTCOME 1 | INCREASE PRIVATE SECTOR INVESTMENT (ON-GRID GENERATION)


In FY18/19, PA-NPSP conducted a series of End to End assessments of the energy sector and identified opportunities to unlock on-grid generation in support of PA-NPSP’s 10,000MW goal. Findings revealed that more than 13,000MW of generation is already installed with a daily dispatch averaging less than 4,000MW demonstrating the imbalance between energy installed and actually used. Sector growth has stalled due to the inability of the market players to meet their operational and financial obligations. Findings also revealed the challenges faced by sector administrators to effectively regulate and administer the industry and market towards sustainable growth of the sector.

Some of the specific challenges include: (i) poor commercial performance of the electricity market leading to financial illiquidity, (ii) inadequate gas supply, (iii) transmission constraints to effectively evacuate power, (iv) ineffective and/or lack of appropriate regulation including a cost reflective tariff, and (v) lack of sector governance and limited political will to enact needed reforms.

For ongoing Independent Power Producer (IPP) transactions, negotiations between investors and NBET on the commercial terms of potential PPAs has delayed financial close. In the third quarter of 2018, NBET issued three separate PPA Addenda that included terms making the IPPs less bankable: i) NBET would only be responsible for energy payments for energy demanded by customers, (NBET would not make minimum capacity payments or similar take-or-pay language); ii) NBET would not mitigate foreign exchange risk; and iii) NBET would not accept any risk of failure to dispatch as a result of transmission constraints. Each Addenda element creates significant financial barriers to securing financing for and successfully operating on-grid IPP projects. PA-NPSP plans to work to support the developers (Gas and Solar IPPs) to determine the most appropriate off-take arrangement that will allow for execution of PPAs to facilitate financial close. Flexibility in NBET’s rulings under the above addenda will likely be necessary to achieve financial close. Current rulings impose too great a financial risk for potential lenders and financiers, given the poor history of downstream payments in the sector. In FY20, PA-NPSP will work with NBET to support the development of appropriate frameworks to ensure Nigeria can get the generation that its network and consumers require at competitive prices and terms.

PA-NPSP continues to provide transaction advisory support on specific, priority transactions to develop a way forward that would progress projects and provide the Nigerian grid with much needed generation. After six years of stalled negotiations, the Government decided to terminate the NIPP transactions and retender the assets. Completing the transactions with credible investors will halt the continued depreciation of the generating assets under the current suboptimal operational arrangement of NDPHC and in turn, add over 4000MW capacity to the national grid. The PA-NPSP team will also continue to provide transaction assistance to bring prioritized greenfield and brownfield generation projects to financial close and develop new models such as the Willing Buyer/Willing Seller arrangements that will bring stranded generation into operation.

On-Grid Generation

Increased private sector investment in the power sector to meet energy demand


• Supported Niger Delta Power Holding (NDPHC) and Bureau of Public Enterprises (BPE) in the privatization transaction of the National Integrated Power Project (NIPP) generation assets.

• Supported BPE in the re-privatization transaction of Yola DISCO and Afam Generation Company – Preferred bidders for both transactions have been identified and negotiations have commenced.

FY20 Overview

Focus Areas • Provide public and private stakeholders

with transaction advisory support to facilitate project financial close

• Provide counterparts with technical assistance to facilitate issuance of commercial documents

Primary Stakeholders NDPHC, BPE, Infrastructure Concession Regulatory Commission, IPPs, NBET.


The PA-NPSP team also will identify opportunities to include female and marginalized groups in capacity building and transaction advisory support.

Intervention 1.03: Maintain an evolving transaction assistance plan to achieve PA-NPSP goals by identifying, segmenting, and prioritizing a pipeline of priority transactions for support

Objectives:

• Provide project updates, at a strategic sector and transaction level, on the Power Africa transaction assistance support services to existing greenfield/brownfield projects

• Provide project updates, at a strategic sector and institution level, on operations improvement support provided to existing GENCOs

• Prioritize generation transaction support, considering existing resource constraints • Support alignment of core stakeholder groups (i.e. FGN, energy sector investors, project

developers, and major donors) on roles and opportunities for synergies and collaboration

To achieve PA-NPSP’s target of 10,000 MWs of unlocked and/or new generation capacity, the On-Grid Generation team will continue to provide transaction assistance for targeted projects where (a) the greatest potential impact is likely to come from (greenfield and brownfield projects receive support based on likelihood to achieve financial close); (b) transaction support is most appropriate (at a strategic and transaction level); and (c) enabling environment elements (at the legislative, regulatory, and overall policy levels) are in place (in close coordination with activities under the Enabling Environment area).

Maintaining a robust transaction assistance tracker will enable PA-NPSP to keep a strategic focus on engaging key stakeholders to obtain buy-in and alignment on the proposed activities of the various parties (PA-NPSP, Government and Investors) to achieve the short, medium and long-term program interventions, objectives and goals.

Table 4: Intervention 1.03 Activities and Deliverables (On-Grid Generation)


Targeted transaction assistance FY20.1.03.01

10/01/19 – 09/30/20

1. Ongoing prioritization process and list of existing and developing gas and renewable generation transactions based on impact, timeliness, and viability to achieve PA-NPSP objectives (including an updated transaction database and expected timing for support)

2. Identification of the type of needed support and implementers of support (including crosscutting activities)

Technical Deliverables N/A [See contractual deliverables: Power Africa Transaction Tracker (PATT) Update; also, transaction updates included in quarterly progress and annual reports]

Intervention 1.04: Provide technical and transaction assistance to FGN to support the privatization of Nigerian National Integrated Power Project (NIPP) generation companies (assets) to unlock 4,000 MW of capacity

Objectives:

Support NDPHC with PA-NPSP technical advisors to assist with the following:

• Support the development of modifications and refinements to the transaction roadmap that will guide the overall transaction process.

• Support revisions to, or development of new procurement documentation, information memoranda, procedures and processes that will ensure a fair, transparent and effective bid process.

• Support NDPHC/Bureau of Public Enterprises (BPE) in the development of the bid selection criteria and evaluation process to select credible potential investors (bidders).


• Support NDPHC/BPE with negotiations and finalization of all terms of the privatization agreements with the successful bidder.

Six years after their start, the transactions for 10 NIPP gas-fired power plants have failed to reach financial close due to a variety of challenges:

• Sector Performance and Market Liquidity: These issues have exacerbated the challenges due to the lack of capacity and understanding across the sector among major stakeholders, as well as lack of a platform for effective coordination of the various stakeholders within the sector.

• Nigeria Bulk Electric Trading Company (NBET) Energy Only PPAs: NBET converted original PPAs into energy only PPAs from the capacity and energy based PPAs, which formed the final set of transaction documents and guided the decisions of the bidders in their proposals. NBET’s decision stemmed from the dispatch constraint and the poor remittances by the DISCOs.

• Gas Supply Challenges: Other than the Calabar power plant, NDPHC has yet to reach credible agreements for supply of gas for its plants.

• Investor Funding: In a broad sense, investors have struggled to obtain funding/financing due to market liquidity challenges.

Given the issues that frustrated the close of the initial transactions, NDPHC and BPE intend to retender the NIPP assets as an “Asset Only” transaction without the need to secure commercial documents such as PPA, Gas Supply Agreements (GSAs), and Grid Connection Agreements (GCAs). The transaction structure for the retendering process is being reviewed by the Board of NDPHC. To increase NDPHC Board’s understanding of the issues and opportunities, PA-NPSP conducted an analysis of the Public Private Partnership options available for the NIPP generation companies. The options were evaluated alongside the objectives and goal of NDPHC with careful attention to the current context and enabling environment within which the Public Private Partnerships will be implemented. The options that have been presented to NDPHC Board for consideration clearly highlighted that it was unlikely that retendering the NDPHC generation companies under the same or similar divestment approach (80% share sale with complementary on-grid commercial documents) will yield a positive outcome given the current Nigeria Electricity Supply Industry (NESI) environment. PA-NPSP intends to provide technical and transaction advisory support to NDPHC and BPE upon commencement of this retendering process.



Advisory support to NDPHC and BPE on the privatization of the NIPPs FY20.1.04.01

11/19/19 – 09/30/20

1. Support assessment of the NIPP generation companies from a documentation, legal, financial, commercial and technical perspective.

2. Refine the transaction roadmap that will guide the transaction process 3. Support to develop procurement documentation, information

memoranda, procedures and processes that will be applied to ensure a fair, transparent and efficient bid process.

4. Support NDPHC/BPE in the bid evaluation process and selection criteria to select credible potential investors (bidders).

5. Support NDPHC/BPE to negotiate and finalize all terms of the privatization agreements with the preferred bidders.

Technical Deliverables N/A [See contractual deliverables: PATT Update; also, transaction updates included in quarterly progress and annual reports]


Intervention 1.05: Provide advisory support to Bureau of Public Enterprises (BPE)

Objectives:

• Support BPE with the review of business plans submitted by the preferred bidders for 967MW Afam Generation Company (Afam Power Plc and 240 MW Afam Three Fast Power) and Yola Electricity Distribution Company.

• Assist BPE with the negotiation of the required Project Commercial Documents including PPAs, GSAs, and GCAs that will enable the transactions to reach financial close.

• Support BPE with an analysis of options available to financing the future tariff shortfall. • Support efforts to enhance oversight of the sector including support for the 5-year performance

review and development of performance improvement plans (PIPs) for DISCOs • Support BPE in building capacity and knowledge of corporate governance and governance

standards to strengthen Board of Directors oversight and management of state assets.

BPE is currently tendering the Afam generation assets and Yola DISCO asset for privatization and has invited investors to express interest in acquiring shareholdings of the FGN assets. Preferred bidders have been selected (Transcorp Power - Afam and Quest Electric Nigeria Limited – Yola). For the next phase of the transactions, BPE has requested support with the negotiations with the preferred bidders to reach financial/commercial close, which will commence upon approval of the financial evaluation results by the National Council on Privatization. In FY20, PA-NPSP will continue to support BPE with the privatization, specifically in reviewing preferred bidders’ Business Plans in conjunction with the proposed Performance Agreements (that are to be executed by the preferred bidder and BPE) to ensure that the proposed implementation commitments and performance milestones are accurately captured and the two documents are aligned.

In FY18/19 BPE requested the support of PA-NPSP to conduct an analysis of options available to the FGN for financing the future sector tariff shortfall. PA-NPSP collaborated with BPE leadership to evaluate the pros and cons of issuing a $1.6 billion bond facility to ease the repayment of legacy sector debt and anticipated tariff shortfall. To support this initiative, the PA-NPSP team developed a financial model for the bond facility to assess the impact on sector liquidity and growth. The financial model helps determine the sector conditions (e.g., revenue growth rate) required for sustainable growth and debt repayments. Most critically, the financial model highlighted the importance of developing key sector plans (e.g., Performance Improvement Plans (PIPs), Meter Asset Provider (MAP), metering roll-out strategy, etc.) to accurately determine investment requirements to improve DISCO performance. Repayment of this sovereign loan instrument will be fulfilled by a repayment amortization scheme included as part of the cost reflective tariff. The initial analysis provided insights to the general magnitude of improvements required, however without being able to estimate the impacts of investments and performance improvements within the sector (e.g. PIPs) the analysis, at current stage, is limited in its value. One main recommendation of the bond analysis is that before BPE pursues a sovereign bond issuance, there needs to be a clearer path forward to DISCO improvement to ensure sector revenue is able to cover future operational costs, capital expenditures, debt repayments, and interest payments. In FY20, PA-NPSP plans to continue to support the FGN in evaluating financial options that will provide a path forward for the sector (in coordination with other donors, agencies and stakeholders).

In FY18/19, PA-NPSP had planned to support BPE’s 5-year major review of the power sector privatizations. However due to “force majeure years” being called, the review has been postponed until December 2021. Due to the postponement of these reviews, PA-NPSP will review and evaluate the DISCO PIP targets and collaborate with BPE, World Bank, and other donors to monitor the implementation and results of these PIPS.


The specific activities envisioned to take place over this period include the following:

• Assist with the identification of metrics used for evaluating progress with the PIPs. • Support BPE in the review and provide recommendations for DISCO operational improvement • Support the development of standardized reports and tools to be used for the evaluation and

monitoring of the PIPs • Build the capacity of BPE staff in areas of DISCO operations, DISCO key performance indicators

(KPIs) and contract compliance • Conduct coordination meeting between World Bank and other donors to ensure PIP KPIs are

progressing toward target.

As implementation of DISCO PIPs commences, BPE, as a 40% shareholder will want to measure the activities, milestones and performance of the DISCOs against the updated Performance Agreements. To this end, PA-NPSP will support BPE in the development of a performance monitoring framework that will assess the DISCOs and GENCOs performance and achievement of key milestones. This will include, but is not limited to, identifying KPIs, developing an initiative and activity tracker and the design and development of a reporting process.

BPE has also realized the need to strengthen its Board of Directors’ representation at DISCO and GENCOs. As a result, PA-NPSP will organize a series of capacity building initiatives focused on improving BPE representatives’ understanding of the fundamentals of corporate governance and governance standards as it relates to electricity generation, transmission and distribution. The capacity building courses will provide the tools and techniques to understand the key responsibilities of a director and will result in BPE becoming a more proactive and stronger board member. The initial outcome measure would be the feedback from the participants (using an evaluation form) on the change in knowledge, skill or confidence. A follow-up survey will be sent to all participants, 6 months after course completion, to evaluate the effectiveness of the training at individual, organizational, or systems levels.



Transaction advisory support to FGN on privatization of Afam Generation Company FY20.1.05.01

10/01/19 – 09/30/20

1. Support BPE with the review of preferred bidders’ business plan against the draft performance agreement (that is to be executed by the two parties) to ensure that the proposed implementation commitments and milestones are accurately captured

2. Assist with review and negotiation of the financial documentation specifically those that will have a direct effect on the rights and obligations of the Government

3. Assist BPE with the negotiation of the Project Documents (PPA, GSA, GCN, etc.)

Advisory support to the Bureau of Public Enterprises to develop processes, tools, and systems to monitor DISCO PIPs FY20.1.05.02

10/01/19 – 09/30/20

1. Assist with the identification of metrics used for evaluating progress with the PIPs as it relates to the World Bank’s Nigerian Electricity Distribution Improvement Project.

2. Support the development of standardized reports or tools used for the evaluation and monitoring of the PIP

3. Build capacity of BPE staff in areas of DISCO operations, DISCO KPI’s and contract compliance

4. Coordinate with the World Bank and other donors with regards to the progress of the PIPs.



BPE Board of Director capacity building for BPE board representatives FY20.1.05.03

11/18/19 – 09/30/20

1. Determine capacity building requirements for BPE board representatives 2. Identify qualified training vendors, develop course structure and content 3. Organize and conduct training and capacity building activities 4. Conduct follow-up surveys with course participants as to the effectiveness

of the training.

Technical Deliverables 05/31/20 A. Board of Director course materials and evaluation

Intervention 1.06: Provide transaction advisory support to Independent Power Producers (IPPs)

Objectives:

• Support select IPPs in identifying and developing alternative business model assessments to maximize returns and equity for developers. Select IPPs include;

1. Qua Iboe Power Plant (QIPP) 2. Ondo IPP 3. Proton Delta by Sunrise 4. Quaint Energy 5. Nigeria Solar Capital Partners 6. EN Africa Consulting 7. Pan Africa Solar 8. Nova 5 Solar 9. Nova Scotia Power

• Provide advisory support, as needed, to select IPPs in identifying available credit enhancements and with the process of developing and negotiating such agreements with the FGN and associated parties.

• Provide ongoing technical and advisory support to IPPs on project development and finalization of key industry agreements including negotiation of PPA with NBET and/or potential off-takers.

The broad understanding and approach to resolving stalled transactions led to requests for PA-NPSP’s support towards identifying alternatives to the single buyer arrangement that would lead to financial close to IPP developers in gas and solar generation. IPP Investors and developers are seeking credible off-takers with the capacity to take energy under a PPA that accommodates both energy and capacity payments (take or pay) as opposed to an energy only PPA being offered by NBET. PA-NPSP will also support select IPPs to explore options to progress the PPAs with NBET using a new transaction structure that addresses NBET's concerns on dispatch and foreign exchange risk. This approach may include negotiated terms (middle grounds) that are acceptable to NBET and the investors/developers, which may create a win-win situation for the development of IPP and increase investor interest in the sector. PA-NPSP will provide targeted transaction support to move the current IPP transactions towards financial close.


Activity Activity Lead(s)

Start – End Date Sub-Activities

Advisory support to select solar IPPs to facilitate project financial close FY20.1.06.01

TBD 10/01/19 – 09/30/20

1. Support select solar IPPs in conducting alternative business model assessment (including the use of batteries for storage) to maximize returns and equity to developers

2. Advisory support, as needed, to select solar private developers and lenders in identifying the available credit enhancements and negotiating the process of developing and negotiating such agreements with the FGN and associated parties.


Activity Activity Lead(s)

Start – End Date Sub-Activities

Advisory Support to gas IPPs to achieve financial close FY20.1.06.02

TBD 10/01/19 – 09/30/20

1. Provide ongoing technical and advisory support to gas IPPs (QIPP, Ondo 1PP, Quaint Energy, Proton Power Plc. etc.) on project development and finalization of key industry agreements including negotiation of PPA with NBET and/or potential eligible customer.

Technical Deliverables N/A N/A [See contractual deliverables: PATT Update; also, transaction updates included in quarterly progress and annual reports]

Intervention 1.07: Provide technical support to Nigerian Bulk Electricity Trading Company (NBET) in structuring Power Purchase Agreements (PPAs) for bankable commercial transactions

Objectives:

• Support the review of existing standard form PPAs and recommend appropriate contracting structure and market operations changes that may be required to ensure that PPAs become effective and are acceptable to the parties.

• Support NBET in its efforts to improve the effectiveness of its business operations. • Review the securitization structure of the industry in the short, medium and long term with

specific focus on NBET and various FGN/World Bank backed guarantee schemes and their impact on on-grid transactions.

In the Nigeria Electricity Supply Industry, NBET issues invoices to the DISCOs based on the contractual terms of the negotiated PPAs which are currently at negative variance with the terms of the DISCO’s Multi-Year Tariff Order (MYTO). This implies that the energy costs being charged to the DISCOs, based on PPAs, cannot be recovered through the tariffs charged to customers by DISCOs due to a misalignment of cost elements.

This disparity of energy and capacity prices is based on the misalignment of the adjustment mechanism of the varying indices and indexations within the PPAs and MYTO with regards to inflation, fuel price, foreign exchange and generation output. Based on the terms of the PPAs, changes in particular indices require regular adjustments to be enacted to the base tariffs. Although DISCOs signed Vesting Contracts which uses costs from the PPAs, the sporadic changes in PPA indices contradicts with the current MYTO which only allows for bi-annual reviews (minor review) to account for changes in market indices.

This disparity, if not addressed, will further exacerbate the liquidity crisis that currently plagues the industry and stagnates the transition to a fully functional electricity market. PA-NPSP in FY20 intends to support NBET to critically review the standard form PPAs in conjunction with the standard form DISCO Vesting Contract to determine areas of misalignment and provide recommendations to address the identified gaps.

Also, under the terms of the standard NBET PPA, NBET commits to purchase electricity generated by the IPP for a term of 20 years for onward sale to DISCOs who then supply the electricity to the consumers. However, significant aggregate technical, commercial, and collection (ATC&C) losses in the Nigerian power sector has led to a sector-wide liquidity crunch; remittances from the distribution companies to the market still hovers around 25-30 per cent of their invoices. This situation results in NBET failing to meet its full payment obligations to the generation companies and, which in turn, constrains the ability of the generation companies to meet their payment obligations to their respective gas suppliers. Consequently, this had led to the decision by NBET to execute energy-only PPAs (Interim PPAs), which basically guarantees payment for only energy delivered but no payment for available capacity. This change is unacceptable to potential investors who are looking to execute bankable and effective contracts. The Transition Electricity Market depends on a contract-driven market process to maintain the interests of developers and investors in the electricity sector.


In FY18/19 PA-NPSP had deprioritized support to NBET due to NBET and PA-NPSP not being able to identify a mutually acceptable and valued scope of work. Additionally, in the pre and post-election period many government agencies were waiting on new political appointments and postponed donor support until political stability. In FY20, PA-NPSP shall fully engage with NBET to identify opportunities to advance PPAs, as described above. The identified support will consider amendments to terms and obligations in the standard PPA and other supporting agreements, which (i) guarantees return of investment and profit to the developers and (ii) on the other hand, enables revenue recovery by NBET to meet its payment obligations to the GENCOs. Another approach is supporting NBET with developing its business plan with the possible arrangement to trade directly with a willing buyer and thus unlocking stranded capacities not taken up by the DISCOs.

The identification, implementation, adoption, and sustainability of the supports would inevitably lead to market recovery and sustainability.



Technical support to NBET in structuring contracts for bankable commercial transactions FY20.1.07.01

04/01/20 – 06/30/20

1. Review the existing PPA template and recommend appropriate contracting structure and market operations changes needed to make the PPA bankable in in order to advance generation projects and improve sector liquidity.

2. Support NBET in its effort to improve its business operations.

Technical Deliverables 06/30/20 A. Contracting and Dispatch Gap Analysis

Intervention 1.08: Provide transaction advisory support to Infrastructure Concession Regulatory Commission (ICRC) on implementation of power asset transactions

Objectives:

• Provide guidance to ICRC on leading practices for implementing infrastructure concession tenders, based on international standards and in compliance with relevant Nigerian procurement laws and policies.

The FGN continues to make efforts to increase power supply to meet the growing demand, and in doing so, created the enabling environment for private sector participation and promoted the development of greenfield and brownfield hydrogeneration projects under the Federal Ministry of Power, Federal Ministry of Water Resources (and Federal Ministry of Agriculture). The dams developed for water resource management, power generation and in some cases, irrigation agriculture.

Following the significant progress to develop these projects, the government has commenced the process of engaging private sector participation in the management and operation of some of these assets under a public-private partnership (PPP) arrangement. Considering that the dams are national assets and therefore cannot be divested, a concession structure may be the most appropriate approach to achieve government’s overall goal of increasing power generation through private sector investment. The ICRC is the agency in charge of promoting private sector participation in the operations of these hydrogeneration dam assets under a concession structure and manages the arrangement on behalf of the Federal Government




Transaction advisory support to ICRC to execute PPP power projects FY20.1.08.01

03/15/20 – 09/30/20

Transaction advisory support to ICRC to implement the concession transaction:

• Assessment of progress made on the project (construction, location to off-taker, review of outline business cases (OBC certification);

• Development of replicable/standard procurement templates for use in similar projects.

Technical Deliverables 09/30/20 A. Concession Transaction Procurement Structure [See contractual deliverables: PATT Update; also, transaction updates included in quarterly progress and annual reports]

See Appendix B: PA-NPSP Activity Gantt Charts (FY20) for a synopsis of planned outcome activities and implementation timeframes.


OUTCOME 2 | FACILITATE CONNECTIONS (OFF-GRID)


Nigeria’s off-grid sector made meaningful progress throughout the past year with the continued strong support from the FGN’s REA. Growing support from major donors, such as USAID, the European Union, African Development Bank (AfDB), World Bank, and others, further strengthened the sector’s development through a combination of programmatic support, direct grants, and/or technical assistance. Notably, several programs were launched with an aim to catalyze billions in private sector financing for the sector, including the following:

(1) REA-championed Energizing Economies Initiative (EEI), a fully private sector-financed program aimed at developing a portfolio of mini-grids providing reliable electricity to shops in unserved or underserved markets; the program contributes to the growth of Micro Small & Medium Enterprises, results in the creation of new jobs, and improves the health and safety of the working environment in these markets;

(2) World Bank-funded Nigeria Electrification Program (NEP), a US$350 million subsidy program for mini-grids and solar home system (SHS) companies that aims to catalyze significant new financing for the scaling-up of the off-grid sector; and

(3) European Union-funded Mini-grid Acceleration Scheme (MAS) and Interconnected Mini-grid Acceleration Scheme (IMAS), a €10 million grant program that will provide distribution equipment as in-kind grants, integrate productive use, and support resiliency of and cooperation with Nigeria’s DISCOs.

Despite the market opportunity for off-grid businesses, there are considerable challenges to large-scale deployment of off-grid energy solutions. The following characterize the off-grid sector in Nigeria:

• Limited private sector investment activity despite active interest from Private Equity and Institutional Capital, with high cost of capital due to macro-economic issues such as high interest rates and currency fluctuation;

• Restrained approach to market by SHS market operators given the lack of market information, especially customer data, and lack of flexible payment mechanisms such as mobile money

• Lack of capacity to support the scaling up across the various components of the value chains for both SHS and mini-grids

• Regulatory challenges to address underserved population through typical off-grid interventions

During FY18/19, the key focus areas included (1) conducting a series of assessments, (2) supporting REA, (3) providing technical assistance to the private sector developers, and (4) coordinating with other donor programs to arrive at synergies.

Off-Grid

Off-grid connections to cleaner power supply


• Supported World Bank’s Nigeria Electrification Project by identifying sources of funding and working on a path to reducing transaction time and costs

• Enhanced transparency in administration of European Union’s Nigerian Energy Support Program’s grant program through REF for their MAS /IMAS initiatives, by creating entire tender administration on Odyssey platform.

• Launched Energizing Economies by building capacity in REA for deployment; supporting raising financing, including innovative collateral mechanisms for loans

• Accelerated the Solar Home System Market through creation of tools such as value chain mapping, strategies for expansion, payment service landscape and off-grid capital map

FY20 Overview

Focus Areas • Enhance market transparency • Activate financing for off-grid expansion • Cultivate talent and capabilities to support

the off-grid market

Primary Stakeholders REA, off-grid investors, SHS companies, mini-grid developers, REAN, USAID programs (health, agriculture, water, other), GIZ, European Union, World Bank, other sector development partners


PA-NPSP conducted assessments to understand the financing landscape, companies in the private sector that are active in this space, and identify lessons learned from several mini-grid projects and SHS deployment. From here, PA-NPSP has either leveraged these assessments directly in its technical assistance support to developers and companies and/or converted these assessments into valuable tools for cross-sector consumption, such as a Risk Assessment Framework for mini-grid projects and a Value-Chain Mapping tool for cost reduction of SHS systems. Other assessments, such as the Strategies for Expansion and Payment Systems, are being converted into tools to be delivered in FY20.

Support was provided to REA to build project implementation capacity for mini-grids, starting with the EEI program. The entire deployment process was converted into a guide including necessary tools, methodologies and guidelines, all of them considering gender and social inclusion. PA-NPSP also proposed a new mechanism for collateral for loans for such projects through a revenue pledge account, which aided in a local commercial bank disbursing about US$1.3 million.

Working together with REA, PA-NPSP launched an initiative to reach out to potential investors to increase their awareness around the various opportunities in the off-grid sector in Nigeria, with a focus on the now-launched NEP. This initiative also works to identify and implement strategies to reduce the time and resources/costs associated with financing mini-grid projects/SHS companies – from origination to drawdown of funding. In order to enhance capacity for project implementation support for NEP/EEI, PA-NPSP is further supporting REA with a team of advisors who support the NEP project management unit. This will also support the financing of other follow on programs (such as EEI, MAS and IMAS) and the off-grid sector at large.

Technical assistance to private sector companies and developers has resulted in a significant pipeline of at least 36 companies receiving support, with an expected potential of approximately 470,000 connections. This support includes reviewing business plans and growth strategies and assisting with fundraising, including introductions to potential investors and support leading to financial disbursements. This has resulted in mobilizing US$17 million in private-sector capital, some as a result of imparting training to commercial banks upon their request. The assistance provided to USAID for extending the DCA has provided additional credit enhancement to make the banks feel comfortable in lending into this sector.

Working closely with other donor programs, PA-NPSP proactively took a collaborative approach to donor engagement that could enable synergies across the various active programs. As examples, this included working together with the World Bank on activating investors for NEP, setting the evaluation criteria and supporting the evaluation of the SHS companies who submitted their expression of interest as part of the NEP tender; with the European Union’s Nigeria Energy Support Program (implemented by the Deutsche Gesellschaft fur Internationale Zusammenarbeit [GIZ]) on providing the grant administration platform for their mini-grid subsidy programs; with United States African Development Foundation in supporting the shortlisted developers applying to receive grants; and with other USAID programs to enhance the effectiveness of their activities (i.e. Integrated Health Program, Effective Water, Sanitation and Hygiene activity, Feed the Future, USAID Office of Transition Initiatives, and others).

Focus Areas

Formulated during PA-NPSP’s Pathway to Impact analysis in FY18/19, the Off-Grid theory of change aims to accelerate the growth of the off-grid market by outlining the steps that PA-NPSP, industry, donors, and government actors must address. These include the need to (a) improve market transparency, (b) unlock financing through the piloting of new innovative financing and business models, and (c) deliver capacity building support across all stakeholders, working directly with REA, private developers, and capital providers. This will dramatically influence service cost, attractiveness to consumers, and investor risk and returns, thus changing the electrification landscape. The plan for FY20 will center around three key areas of intervention, with mainstreamed gender and social inclusion, as outlined in the following pages.


Intervention 2.01: Enhance market transparency, information, and tools to attract and support stakeholders interested in the off-grid sector and guide their response to growing demands

Accurate data, knowledge, and tools are necessary to attract and support interested stakeholders in the off-grid sector, and guide their actions towards “scaling up” of the sector. This intervention will further support Interventions 2.02 and 2.03 – targeting mobilization of finance and delivery of capacity building, respectively – to enable stakeholders to make informed decisions to drive the roll-out and scale up of various off-grid initiatives, thus enhancing the efficacy of the ecosystem.

Objectives

• Increase availability of critical, reliable data and market information through accessible information dissemination platforms

• Increase the awareness of the SHS Companies /mini-grid developers regarding their consumer and investor in their markets

• Improve information sharing between businesses, supporting services, and intermediaries

Key components of Intervention 2.01 in FY20 will include the following:

Intervention 2.01.01: Develop data sets to improve effectiveness of decision making in the sector

PA-NPSP will support and provide actors in the off-grid sector, especially investors and developers, with accurate, up-to-date, and easily accessible information to gain confidence in and awareness of the opportunities and risks in the sector. These data sets will also serve to facilitate sharing lessons learned from FY18/19 activities of PA-NPSP and other stakeholders in the sector. This component will include the following key activities:

Developing a Concept for a Comprehensive Geospatial Map Indicating Least-Cost Technology for Energy Access: The need for such a tool has been expressed by all stakeholders and it is anticipated that such a tool will be designed to guide the government, mini-grid and SHS project developers, and investors in determining the least-cost technology for energy access between grid extension, mini-grid, or SHS, for each household in Nigeria. PA-NPSP will work together with the REA and other donors to develop the concept for a Geospatial Mapping building upon their preliminary work. This web-based geospatial tool will be designed for public consumption and hosted on REA’s website built with data collected by REA and other sources identified by PA-NPSP.

REA Strategy: REA has requested PA-NPSP support to work with them to articulate a 5-year vision document with a clear path to achieve the same. This document shall then form the guideline for the REA’s operations in due course to come.

Intervention 2.01.02: Develop studies to enhance market knowledge in select areas as articulated by key stakeholders

Through studies such as market potential, go-to-market implementation strategies, and partnership facilitation the program team shall increase the awareness of the operators of off-grid solutions. Market studies will provide market-sizing information, analyze the competitive landscape, outline broad risks, and list out various possible scale-up strategies as a guide for companies and developers, and conduct studies for both SHS and mini-grid markets, where applicable, and include the following:

Productive Load Strategies for Growth: PA-NPSP will develop models for productive loads in rural communities to (1) facilitate more efficient and effective productive load processing through use of stable and reliable solar technology and (2) increase overall community access to electricity through the installation of such anchor loads that significantly improve the economics of off-grid solutions in rural agricultural areas of Nigeria. This will include an analysis and report on how off-grid solution providers such as mini-grid developers are currently incorporating the distribution/sale/financing of productive-use


appliances in their normal course of business and the generation of market intelligence. The study will focus largely on the use of agricultural equipment for post-harvest processing of crops, including crops designated under USAID’s Feed the Future program as well as others of economic importance. Several of the results will serve as key inputs to AfDB’s component on financing for productive load equipment under NEP, Shell Foundation’s Konexa (formerly ECOF), and USAID Feed the Future programs.

Market study: Energy Storage Systems (ESS) & Batteries: Higher initial costs for ESS compared to diesel back up poses a challenge to incorporate them into mini-grids. Research is necessary to estimate the demand and market size for ESS and then evaluate flexible and integrated business models to introduce ESS solutions into off-grid projects. As such, this study will focus on estimating the scale of the market, financing required, and opportunity for U.S. businesses.

Import Duty Barriers and Recommendations: PA-NPSP will support REAN, and other stakeholders to develop a business case for political and fiscal support for more favorable and equitable import-duty exemptions for the sector. More favorable support can potentially lead to lower consumer prices for off grid and rural energy systems, accelerating their adoption and improving their access to additional base-of-the-pyramid customers. This report will seek to satisfy the following key requirements identified in FY18/19 based on discussions with stakeholders:

(1) A guide on tariffs and the process for getting products into the country – highlighting the process for importing renewable energy products into the market with the spotlight on the viability of future options such as in-country production;

(2) A business case for the economic link between the state and federal support for renewable energy and its positive spillover effects on other sub sectors of the economy, i.e. agriculture and healthcare have the same challenges with distributed operations;

(3) A workshop for SHS companies to disseminate report findings and recommendations, along with initial support to streamline their import processes

Intervention 2.01.03: Develop tools for business decisions in the off-grid sector

PA-NPSP will develop tools that can effectively mitigate information asymmetry in the market. The tools will include, but may not be limited to, the following:

Strategies for Expansion Tool Adaption: The Tool will aid SHS companies to make informed decisions along key components of their value chain, utilizing the FY18/19 assessment on strategies for expansion of SHS companies supporting the scaling up. As such, the adaption of this tool will build on the internal and external partnership structure that will allow the SHS companies to optimize customer reach and operating margins, as they scale up.

Payment Services Provider (PSP) Tool: The Payment Services Provider Tool will be designed to profile each of the major PSPs and allow developers and operators in the off-grid sector to review and determine the best PSP or consortium of PSPs for their targeted demography. The tool will include key determinants that off-grid developers study when considering the expansion of their service lines and the respective payment provider, such as the concentration of the PSP agents in a given location, costs of transaction, synergies to grow their business etc.

Support REA to Pilot Energy Access Database and Geospatial Tool: This activity is intended to provide support to REA in working towards a central repository for Energy Access Database and the geo-spatial tools being developed by various donor programs. This will guide stakeholders in determining the least-cost technology mix of grid and grid extensions, mini-grids, and solar home systems to produce an effective electrification solution for each household in Nigeria. This tool will also support gender and socially-inclusive business decisions to address this market potential. Stakeholders have expressed the need for such a tool, and it is anticipated as a key priority area for REA’s new administration, particularly in coordinating off-grid stakeholders to organize data collection in a central location. PA-NPSP and REA


aim to centralize these efforts through a single platform and avoid any duplication of efforts. As such, PA-NPSP will support REA and donors to develop a concept note that will serve as the basis for the development and operationalization of the energy access database and geospatial tool.These initiatives will play a major role in lowering the costs of expansion into, or within, Nigeria.

Table 10: Intervention 2.01 Activities and Deliverables (Off-Grid)


Develop data sets to improve effectiveness of decision making in the sector FY20.2.01.01

10/01/19 – 03/30/20

1. Support and provide actors in the off-grid sector, especially investors and developers with accurate, up-to-date, and easily accessible information

2. Support REA in developing the 5-year Strategy Document

Develop studies to enhance market knowledge in select areas FY20.2.01.02

10/01/19 –06/30/20

1. Provide market-sizing information, analyze the competitive landscape, outline broad risks,

2. List out various possible scale-up strategies as a guide for companies and developers

Develop tools for business decisions in the off-grid sector FY20.2.01.03

10/01/19 – 03/30/20

1. Utilize the FY18/19 assessment on strategies for expansion of SHS companies supporting the scaling up

Technical Deliverables 06/30/20 03/30/20 06/30/20 12/30/19 12/30/19 06/30/20

A. Study of Key Productive Loads, associated risks to off-grid models, financing mechanisms

B. Energy Storage System / Battery Market Report C. Import Duty Barriers and Recommendations Report D. Distribution Network Expansion Tool and Framework / Rationale

(Strategies for Expansion) E. Payment Services Provider Tool F. Working document

Intervention 2.02: Unlock financing for deployment of off-grid solutions by streamlining and expanding access to innovative financing mechanisms and supporting transactions

The off-grid sector suffers from a severe lack of financing due to the underdeveloped nature of the market, lack of record of accomplishment of past performance for the most active and new companies and developers, unclear returns on investment due to challenges in pricing risk and fluctuating major macro risks. Without investment in operators and supporting industries, the sector will be limited in its ability to deliver power to customers willing and able to pay, at the expected rate of scaling-up. Three key challenges in financing the off-grid sector include: (1) few proven business models; (2) high perceived risk associated with investment; and (3) lack of local currency financing. Based on the team’s engagement with private sector developers and investors to date, the following objectives have been developed to further advance the work undertaken in FY18/19:

Objectives:

• Develop and pilot replicable innovative financing structures and innovative business models for SHS companies and mini-grid projects

• Streamline access to finance for SHS companies and mini-grid developers by supporting companies and developers to prepare to seek financing, develop and execute their growth strategy, and resolve operational inefficiencies

• Identify and implement select key strategies to drive down the transaction time and cost associated with financing the deployment of off-grid energy solutions


• Support capital providers, as appropriate, in identifying, evaluating, and implementing off-grid energy investments

Intervention 2.02 will address these issues with a systematic approach to engaging with the FGN, other donor programs, and the private sector to resolve critical investor concerns, test innovative new business models, and prove new financing structures that can unlock scale in the off-grid market.

Key components of Intervention 2.02 in FY20 will include the following:

Intervention 2.02.01: Support the development and implementation of replicable innovative financing structures for SHS companies and mini-grid projects/portfolios

Traditional approaches to financing the deployment of SHS solutions and mini-grid projects are inefficient and limit the ability to drive investment at scale, often a key criterion in securing funding from both local and hard currency investors. Under this component, the Team will focus on identifying, validating, and piloting a set of innovative financing structures for catalyzing commercial investment at scale for both SHS and mini-grids. Innovative financing structures and risk sharing mechanisms could include, but will not be limited to, the following: Portfolio receivables guarantee (revenue pledge); working capital and/or consumer financing (SHS); receivables financing (factoring) for SHS companies; equipment supplier financing; programmatic insurance instruments; portfolio aggregation facilitation; split asset company/operating company ownership model; take-out (yield co) financing facility (mini-grids); first-loss capital facility; and partial risk credit guarantee. Following on the model’s validation, PA-NPSP will work with both off-grid investors and project developers/SHS companies to implement pilot programs to prove these models.

Streamlining the financing process is critical to unlock the tremendous potential of these markets and drive investment at scale. With the goal of reducing the time and resources (costs) associated with financing off-grid energy solutions, PA-NPSP will continue to work with off-grid investors – often alongside developers and companies where appropriate – to identify and implement various strategies and tools for the standardization of the typical financing process from origination to drawdown of funds. This support will be based heavily on the initial strategy identification phase undertaken in Year 1 as part of PA-NPSP’s support to the REA on the identification of capital sources for off-grid electrification projects and will focus on implementing select strategies which will most meaningfully reduce the transaction time and resources (cost) associated with financing the deployment of off-grid solutions. This will include but is not limited to the development and codification of due diligence procedures, development and deployment of template legal agreements, among other potential solutions. The Team will seek to work with key investors through this process – both local and international – that can champion these solutions.

Mini-grid Technical Due Diligence (TDD) Manual: Given that many mini-grid developers do not have substantive experience raising financing, PA-NPSP will codify and standardize the typical processes required (such as documentation requirement of investors, due diligence procedures, etc.) for conducting a technical evaluation of mini-grid projects to reduce information asymmetries and accelerate the disbursement of funding. This report will seek to codify the typical due diligence processes required for mini-grid project evaluation by local and hard currency financiers, with a focus on technical/operational due diligence to be required by lenders and investors prior to accessing funding. This will include the development and codification of an optimized TDD process for investors with varying degrees of due diligence rigor to reduce the time and resources required to conduct technical evaluations as part of the capital acquisition process.

Where appropriate, PA-NPSP will provide strategic advisory support to select capital providers to assist in identifying, evaluating, and implementing scalable off-grid energy investments aligned with these objectives and other interventions. This support will be heavily coordinated with the support being provided to SHS companies/mini-grid developers and may include the following: general sector knowledge


sharing; pipeline development; partnership facilitation and introduction to select developers and companies; and targeted due diligence support (where value can be generated for follow-on investments).

Intervention 2.02.02: Support the development and implementation of replicable innovative business models for SHS companies and mini-grid projects/portfolios

Innovation is required in Nigeria’s off-grid sector to create investable businesses that attract the commercial investment that is critical to recognize the market potential and support in the scaling-up to address the vast opportunity. PA-NPSP will focus on identifying, validating, and piloting a set of innovative business models capable of catalyzing commercial investment at scale for both SHS and mini-grids.

To demonstrate the impact of integrating anchor or productive load on viability, PA-NPSP may work to deploy an “Energy (+)” business model, which leverages access to energy infrastructure with one or more anchor-load or productive-use applications. Examples could include Energy + Health (through the electrification of a primary healthcare center near one or more communities); Energy + Education (through the electrification of a primary or secondary education facility near one or more communities); Energy + Agriculture (through the electrification of a post-harvest processing facility, cold storage, irrigation system); Energy + Water (through providing reliable power to water utilities); and similar “Energy +” initiatives. To accelerate progress and leverage partner programs, PA-NPSP will highly leverage the various USAID and other donor programs already active across these domains to facilitate ideation, pilot development and validation and program execution.

To demonstrate the commercial impact of optimizing the role of each member of the value chain, PA-NPSP will draw upon the earlier studies on value chain mapping for SHS companies and a proposed study on value chain mapping for mini-grids to explore. PA-NPSP will develop business models, which leverage the unique capabilities of various value chain actors, enabling the outsourcing of some element to drive economies of scale. Examples could include the use of an experienced bulk importer for equipment and key components (e.g. solar panels and batteries, and similar) and outsourcing of the key distribution functions (e.g. warehousing, last mile transport, and similar).

Intervention 2.02.03: Provide strategic advisory support to SHS companies and mini-grid developers

Given the nascent nature of the off-grid market in Nigeria, SHS companies and mini-grid developers often require significant support in managing and executing key strategic activities to enable them to drive scale. This can include activities such as developing their business plans and growth strategies, external fundraising, and developing and executing operational strategies. Under this component, the team will focus on providing such support to a dynamic portfolio of companies and developers, which builds on the progress achieved in FY18/19. Strategic advisory support will be determined and prioritized based on the protocol detailed and various levels of support tailored to each company’s requirements, as detailed in the Year 1 Work Plan. While PA-NPSP may provide a variety of advisory services, the focus will be on services that are most catalytic in mobilizing private capital. This technical assistance will likely include commercial due diligence support, financial analysis, fundraising support, strategic decision support, and deal structuring support. For mini-grids, PA-NPSP may collaborate with the Odyssey platform where needed to leverage their due diligence services, their management of subsidy tendering processes for development finance institutions, and other services as appropriate.

Institutional Sales Framework Report: SHS companies have numerous avenues to drive meaningful volumes, one of which includes direct sales to institutions for their employees. This report will feature a framework for institutional sales for SHS, recognizing that the market size of approximately some eight million units requiring a distribution of 1.6 million units every year needs an accelerated approach to market.

Off-Grid Financing Handbook: Accessing financing for the deployment of off-grid solutions required a consistent approach to unlock the scale required under the various donor-funded subsidy programs. This


report will codify and summarize all work completed to date on streamlining access to finance for mini-grid developers and SHS companies.



Support the development and implementation of replicable innovative financing structures for SHS companies and mini-grid projects/portfolios FY20.2.02.01

10/01/19 – 09/30/20

1. Codify the processes of conducting due diligence on mini-grid projects to catalyze innovative finance models

Support the development and implementation of replicable innovative business models for SHS companies and mini-grid projects/portfolios FY20.2.02.02

10/01/19 – 09/30/20

1. Develop business models .

Provide strategic advisory support to SHS companies and mini grid developers FY20.2.02.03

10/01/19 – 06/30/20

1. Provide support to a dynamic portfolio of companies and developers. 2. Codify and summarize all work completed to date on streamlining access

Technical Deliverables 06/30/20 03/30/20 09/30/20

A. Mini-grid Technical Due Diligence Manual (summarizing the TDD processes for mini-grid project evaluation)

B. Institutional Sales Framework Report C. Off-Grid Financing Handbook (summarizing all financing work and tools

completed to date)

Intervention 2.03: Develop capacity across the off-grid marketplace

Three key capability challenges that limit sector growth include: (1) small talent pool with limited capacity; (2) limited technical capability and support services; and (3) lack of robust, reliable business processes for achieving market scale. The objectives of PA-NPSP’s capacity building interventions are as follows:

• Support to the REA: Capacity building and targeted activities to support REA in the management and implementation of large-scale off-grid programs

• Support to SHS market: Advance skills development and support to improve the robustness of the processes for SHS companies to scale-up

• Support to the mini-grid market: Technical capacity building for mini-grid developers and identification of the entire mini-grid value chain with an objective to reign in economies of scale

• Cross-sector stakeholder awareness: Broad-based capacity building support across the off-grid landscape that is useful to a variety of actors and institutions

Key components of Intervention 2.03 in Year 2 will include the following:

Intervention 2.03.01 Support Nigeria’s REA in the roll-out of large-scale programs REA plays a significant role in facilitating the implementation of large-scale programs such as NEP, MAS, and IMAS. Robust processes are required to enable efficient execution. This component will work to address this critical need through the following activities:

Development of deployment guides to aid the scaling-up of community mini-grid programs such as NEP and MAS, among others: PA-NPSP will work with REA to outline the processes and develop the required tools, methodologies and guidelines for the deployment of community mini-grids projects at


scale. PA-NPSP will develop manuals to institutionalize processes for developing community mini-grids under the World Bank’s NEP and other similar programs. This shall draw heavily upon the experience of similar work delivered by PA-NPSP in FY18/19 for REA’s EEI program. This deliverable will reduce risks during project deployment by outlining standardized processes and leading practices for community mini-grids across the spectrum of developers. Large parts of such manuals also may be applicable to mini-grids projects more widely, in other geographies.

Intervention 2.03.02: Provide support for Nigeria’s SHS marketplace SHS companies need to brace themselves, across their operations, for significant scaling up to address the potential of the market. This component will work to address this critical need through the following activity:

Gender mainstreaming for SHS companies: PA-NPSP will develop an end-to-end mapping of the opportunities for gender-mainstreaming for SHS companies across their value chain and work together with SHS companies to disseminate this and support implementation of such initiatives.

Intervention 2.03.03: Provide support for Nigeria’s mini-grid marketplace Mini-grid developers are currently attempting to carry out all the activities associated with development and operations of their projects, significantly limiting their ability to achieve economies of scale as offered by the market opportunity. Key areas articulated by stakeholders needing further support are outlined below:

Map and assess key elements of the mini-grid value chain: PA-NPSP will assess primary components of the entire mini-grid value chain to identify which actors are best suited to perform the core activities of each value chain component and how each component can be successfully scaled. This process will support and accelerate the rapid deployment of mini-grid programs such as NEP.

Intervention 2.03.04: Provide cross-sector support across various stakeholders in Nigeria’s off-grid value chain Improved awareness of the roles of all stakeholders is key to the success of the off-grid sector. The following activities will aim to build the awareness of all stakeholders and recognize the scale of the market:

Quarterly off-grid meetings: The team will build upon momentum from previous workshops in FY18/19. PA-NPSP will continue to engage with stakeholders across the range of donors and investors – understanding the interventions and priority areas, soliciting feedback, and arriving at synergies based on this. One workshop is planned per each quarter.

Coordinate with potential implementing partners on providing capacity building and training capabilities (e.g., GIZ’s Skill-Up initiative): The PA-NPSP shall work with GIZ to improve the participation of women and other under-represented segments of the society including marginalized communities in the sector and scale up the program for broader outreach. This will address the lack of skills required and may include things such as training and certification programs in technical off-grid domains as well as the team’s support to facilitate the transition of currently available courses into online mediums that can allow and encourage greater participation and social and gender inclusion.



Support the REA in the roll-out of large-scale programs FY20.2.03.01

10/01/19 – 03/30/20

1. Develop manuals to institutionalize processes for developing community mini-grids

2. Work with REA to codify the processes and tools associated with developing captive power projects for educational facilities

Support to SHS marketplace

10/01/19 – 03/30/20

1. Develop an end-to-end mapping of the standard operating systems for SHS companies and training for scaling up



FY20.2.03.02 2. Gender mainstreaming across the value chain for SHS companies

Support to mini-grid marketplace FY20.2.03.03

10/01/19 – 06/30/20

1. Assess primary components of the entire mini-grid value chain 2. Conduct technical capacity building workshops 3. Provide training and resources to mini-grid developers

Provide cross-sector support to the off-grid value chain FY20.2.03.04

10/01/19 –09/30/20

1. Convene quarterly off-grid stakeholders’ meeting 2. Collaborate with GIZ to improve the participation of women in the sector

and scale up the program

Technical Deliverables 03/30/20 03/30/20

A. Community Mini-Grid Program Manuals B. SHS Gender Mainstreaming Report



OUTCOME 3 | IMPROVE THE ENABLING ENVIRONMENT (ENABLING ENVIRONMENT)


The under-performance of the Nigerian power sector is linked to many broad challenges related to electricity policy enforcement, regulatory uncertainty, gas supply, transmission system constraints, and major power sector planning shortfalls that have kept the sector from reaching commercial viability. PA-NPSP works with FGN stakeholders to identify and implement interventions that will create an enabling environment that can be conducive to the long-term development of the sector.

Power Africa recognizes that the creation of a strong enabling environment can catalyze investment and support sustainable long-term development. Thus, interventions to improve Nigeria’s enabling environment and encourage long-term, sustainable investment will provide foundational support for the achievement of Power Africa and FGN development goals. While strategic interventions in other thematic areas are critical in addressing various issues in specific areas of the power sector value chain, an enabling environment will work to address some of the foundational legal, regulatory, organizational, and policy issues that have held back sustainable development in the Nigerian power sector. Following presidential and gubernatorial elections in February 2019, the FY20 work plan reflects the current political environment in Nigeria.

Focus Areas

With these challenges in mind, the focused strategic and tactical activities outlined under OC3 are motivated by four overarching themes to be addressed:

• Sector Planning & Coordination: Work with FGN stakeholders to address the current lack of clear vision for the sector and implement mechanisms to sustainably enact some form of long-term planning. The development of an Integrated Energy Resource Plan (IRP) and planning process for Lagos State can serve as a model for other states and improve overall sector planning and coordination in Nigeria.

• Improved Regulatory Environment: Assist NERC to develop, implement, and enforce regulations that will improve sector economics and increase investment. Work with the regulator to develop organizational capacity and improve overall regulatory processes

• Increased Sector Transparency: Work with FGN entities to cultivate and sustain reliable sources of sector data that can increase transparency and enable data-driven decision making

• Transmission System Operations: Work with TCN to support the efficient dispatch and optimization of resources

Enabling Environment

Improved enabling environment for long-term investment


• Completed End to End Sector Assessments

• Led Donor Strategic Workshops • Audited Multi Year Tariff Model for NERC • Facilitated Transmission Use of Service

Agreements • Provided Technical Assistance to TCN,

NERC, MoF, and BPE

FY20 Overview

Focus Areas • Support FGN stakeholders to enhance

sector planning and coordination and increase sector transparency

• Assist NERC to develop and implement policies to improve sector economics, enforce rules, and increase investment

• Support FGN entities to cultivate and sustain reliable data sources

• Work with TCN on transmission system operations to improve efficient dispatch and optimization of resources

Primary Stakeholders NERC, TCN, MoF, MoP, Lagos State Government, Presidential Power Initiative


Intervention 3.01 (Cross-Sectoral Initiative): Support transformational energy initiatives (Presidential Power Initiative, Lagos State Integrated Energy Resource Plan)

Objectives:

• Support implementation of the Presidential Power Initiative • Support the Lagos State Government to develop and implement an Integrated Energy Resource

Plan for Lagos State (support development of a process that can be replicated by other states)

In FY18/19, PA-NPSP was able to identify several potentially transformational initiatives in the Nigerian power sector. These initiatives offer the potential to upend the existing paradigm of grid power in the Nigerian context. These large, cross-sectoral projects require resources and workstreams managed across PA-NPSP outcomes.

A lack of planning and coordination contributes to sector inefficiencies, liquidity issues, and a lack of private sector investment and participation. Electricity issues must be addressed if Nigeria is to reach its long-term industrialization goals. These reforms will require clear leadership.

Under the new administration, the Presidential Power Initiative (PPI) led by the Office of the President has shown a great deal of potential to mobilize the strategic infrastructure investments that the sector sorely needs. On July 22, 2019, the FGN and Siemens signed a Memorandum of Understanding on the Nigeria Electrification Roadmap to upgrade the country's power transmission and distribution infrastructure with the aim to increase generation capacity to 25,000 MW by year 2025. The six-year electricity project is expected to be implemented in three-phases:

• Phase 1 of the project seeks to increase power delivered by additional 2,000 MW (7,000 MW in total), reduce ATC&C losses and achieve improved grid stability and reliability by year 2021;

• The objective of Phase 2 is to increase the grid capacity from 7,000 MW (expected to be realized from Phase 1) to 11,000 MW by year 2023; and

• Phase 3 is to focus on additional transmission and distribution assets upgrade including large-scale power project in order to increase the grid capacity from 11,000 MW to 25,000 MW and is expected to be achieved by year 2025.

Going forward, PA-NPSP plans to support the FGN to move towards its long-term reform goals, and coordination of sector stakeholders will be crucial for overall sector development.

Over the last year, it has become increasingly clear that while there is significant effort required to address challenges within NESI, the resolution of these challenges will depend on a strong political will to address sector liquidity constraints – including but not limited to an upward adjustment in the cost reflective tariff. For PA-NPSP to achieve one of its main objectives of increasing MWs delivered into the sector, new bankable business and technical models will need to be identified and expanded to address the several well-known constraints to the conventional, centralized energy model.

Following PA-NPSP’s PSRP comparison conducted in FY18/19, PA-NPSP has offered to support development and circulation of a cohesive reform document that could resolve sector issues.

At a state level, PA-NPSP has been approached by the Office of the Governor of Lagos State with an ambitious initiative to reform energy planning at the state level. Following this request, PA-NPSP plans to support the Governor’s office to develop a roadmap to an IRP. This initiative will help the Governor’s office to take stock of current data availability and identify key policies and initiatives that will increase the overall energy security of the state. Once a plan is developed, PA-NPSP will support implementation of key activities.


Table 13: Intervention 3.01 Activities and Deliverables (Enabling Environment)


Provide advisory support to the Presidential Power Initiative FY20.3.01.01

10/01/19 – 09/30/20

1. Provide advisory support to the Presidential Power Initiative and support to the PMO

Support WB/WS implementation model FY20.3.01.02

010/01/19 – 01/31/20

1. Develop archetypes for WB/WS implementation model 2.

Expand Distributed Energy markets via the WB/WS model FY20.3.01.03

02/03/20– 09/30/20

1. On hold.

Support development of an IRP roadmap for the Lagos State Government FY20.3.01.04

10/01/19 – 09/30/20

1. Map relevant stakeholders and develop coordination approach 2. Identify stakeholder requirements for an IRP 3. Review current state of data required for IRP 4. Identify IRP processes 5. Develop implementation structure 6. Stakeholder workshops

Support implementation of IRP for the Lagos State Government FY20.3.01.05

03/01/20 – 09/01/20

1. Stakeholder coordination 2. IRP process development and implementation with counterparts 3. Scoping of technical solutions (e.g. software) to support IRP implementation

Technical Deliverables 08/31/20 09/30/20

A. Working B. Working Document

Intervention 3.02 (Cross-Sectoral Initiative): Support Nigeria Electricity Supply Industry leadership (Office of President, Ministry of Power, Ministry of Finance, Central Bank of Nigeria)

Objectives:

• Support the Minister of Finance to drive fiscal responsibility throughout the Nigerian power sector • Provide MoP with transaction advisory and technical support • Support the Central Bank of Nigeria (CBN) to drive financial transparency in the Nigerian power

sector

In FY18/19, PA-NPSP worked diligently to develop a reputation as an unbiased arbiter and provider of quality technical assistance within the Nigerian power sector. Following this, PA-NPSP was asked to provide key advisors in several areas.

In FY20, PA-NPSP plans to continue support to the development and management of project/technical assistance pipelines that can help to get power to Nigeria’s critical industrial loads. These resources will be available to provide targeted policy analysis and support within the context of specific projects, i.e. Lagos IRP.

As requested and on a case-by-case basis, PA-NPSP will provide MoP with technical advisory, financial, legal, and policy support to help operationalize key ministry policies. Furthermore, PA-NPSP is positioned to support key FGN initiatives at a ministry, departmental, and agency level to bring together stakeholders around a common solution.


Furthermore, PA-NPSP began providing project management support to the CBN as it leads the process to automate and digitize billing and collection for key “maximum demand” customers in collaboration with NERC. This initiative fulfills a Presidential Directive for the energy sector.



Provide advisory support to the MoF FY20.3.02.01

10/01/19 – 09/30/20

1. On-going advisory support

Provide MoP transaction and technical support FY20.3.02.02

01/30/20 – 09/30/20

1. Technical advisory 2. Legal support 3. Gas specialist support 4. Trainings

Provide project management and technical support to CBN FY20.3.02.03

11/21/19 – 09/30/20

1. Project management support 2. Technical advisory

Technical Deliverables N/A N/A

Intervention 3.03: Provide technical assistance to Nigerian Electricity Regulatory Commission (NERC)

Objectives:

• Provide technical assistance to enhance NERC’s support of strategic initiatives such as PIPs, tariff reviews, and development of new regulations

• Support sector development, including strategic communications support • Support NERC operations improvement, • Support NERC in standardizing and improving their data collection and management process • Provide technical assistance to NERC to increase organizational capacity

Historically, political pressure to keep energy tariffs low and uneven policy enforcement have played a major role in keeping the Nigerian power sector from reaching bankability, significantly deterring long-term investment. A lack of reliable sector data makes regulatory decision making even more difficult. Improving data collection and management processes and broader organizational coordination will support work towards more consistent decision-making.

NERC is at the center of NESI and must play a pivotal role in creating an environment in which power supply can become bankable. On key regulatory issues, PA-NPSP will continue to proactively engage with NERC to support initiatives such as: (1) Tariff setting; (2) PIP implementation and review; and (3) Eligible Customer guidelines. PA-NPSP will also work with NERC Commissioners to develop and agree on clear measures of regulatory success to chart a course for the sector.

In FY20, the PA-NPSP team plans to provide holistic support to NERC through continuation of the CYPRESS Self-Benchmarking implementation. Recognizing the importance of NERC to the sector, PA-NPSP plans to coordinate closely with NERC leadership and sector donors (World Bank, UK Department for International Development, USAID-NARUC) to ensure that technical assistance is working towards a common development thesis.




Support to NERC Chairman’s Office FY20.3.03.01

10/01/19 – 11/20/19

1. Provide support to NERC Chairman’s Office, including transmission and distribution interface assessment

NERC Chairman FY20.3.03.02

10/01/19 – 09/30/20

1. Provide support to NERC Chairman. 2.

Short-term data request standardization support FY20.3.03.03

10/01/19 – 01/31/20

1. Data Collection Process Assessment 2. Process Recommendations 3. Trainings

Long-term scoping support for NERC data aggregation platform FY20.3.03.04

05/31/20 – 08/15/20

1. Trainings

CYPRESS Self-Benchmarking for NERC FY20.3.03.05

10/01/19 – 04/30/20

1. Develop Maturity Model Benchmarking Tool (MMBT) 2. Supporting the implementation of a self-assessment process 3. Develop action plan for high priority tasks

Advisor to support streamlining of license application process FY20.3.03.06

03/01/20 -09/30/20

1. Policy and regulatory assessment 2. Policy and regulatory implementation support 3. Judiciary capacity building 4. Permit and licensing process review and support 5. Workshops

Technical Deliverables A. Working documents

Intervention 3.04: Provide technical assistance to Transmission Company of Nigeria (TCN)

Objectives:

• Support TCN leadership by providing targeted decision support to help with operational and investment decisions and to create a more financially sustainable organization

• Assist TCN to identify ways to improve market and system operations • Support TCN to develop and implement processes and procedures to proactively manage and

maintain their many assets • Support TCN’s capacity and organizational development

Due to insufficient historical investment in the transmission system, transmission wheeling capacity remains a key constraint to the development of the Nigerian power sector. Transmission grid stability is a major challenge; with all dispatch done manually, the system experiences an unusually high number of system collapses (e.g., 12 system collapses in 2018). TCN must improve its system operations to increase grid stability and reliability if Nigeria is going to reach its energy access and industrialization goals. PA-NPSP will continue to support TCN’s asset management efforts and to carry out key maintenance plans. PA-NPSP also plans to support dynamic stability studies of the Nigerian grid to help TCN to identify optimal setting of relays and protective devices to mitigate system disturbances and failures.

Donor agencies (World Bank, AfD, AfDB, IsDB, JICA) have allocated more than $1.6 billion in funding as a part of TCN’s Transmission Rehabilitation and Expansion Program, but more funding is necessary to modernize the system. Some funding has been allocated by the World Bank for an energy management system/supervisory control and data acquisition (EMS/SCADA) that (if properly implemented) could help


TCN better diagnose and manage grid reliability issues. PA-NPSP is collaborating and coordinating with donors by providing them with technical reports on required systems at TCN.

Combined with historical funding challenges, the chronic liquidity issues affecting the sector have made it difficult for TCN to maintain financial solvency. In FY20, the PA-NPSP team plans to support TCN in market operations. This includes supporting the development of Eligible Customer agreement templates and providing support in procuring ancillary services.

In this context, PA-NPSP will focus efforts on helping TCN to improve its overall financial position and become a more financially viable organization. Efforts to shore up TCN’s financial position will involve several activities: (1) Support to the Market Operator to ensure efficient billing and collections and, (2) Support to commercialize the eligible customer program.

In parallel, the team also will work with TCN to shore up the reliability issues that affect the Nigerian grid. Reliability interventions will focus on several areas: (1) System operational improvements, (2) Data-driven decision making, and (3) Review of emergency automatic protection system design and settings.

Separately, the team also will assist TCN leadership with investment decision making and procurement support as required. As a part of broader efforts to overcome sector tensions and increase FGN coordination, PA-NPSP will help TCN coordinate with other sector stakeholders as required (e.g., NERC, DISCOs, and others).



Provide advisory support to TCN FY20.3.04.01

07/15/19 –09/28/20 1. Market Operator process improvements 2. Eligible customer agreement template development 3. Tariff/charges determination support 4. Workshops for TCN staff

Support TCN Asset Management FY20.3.04.02

10/01/19 – 04/15/20 1. Asset register tool and manual 2. Trainings

Support TCN maintenance FY20.3.04.03

02/01/20 – 05/15/20 1. Identify key assets 2. Maintenance recommendations and procedures 3. Maintenance plan for critical assets 4. Workshop for TCN staff

Identify short-term key actions TCN could implement to improve operations FY20.3.04.04

10/01/19 – 05/01/20 1. System operations current state analysis 2. Revise system operations procedures 3. Develop new system operations procedures 4. Recommendations for revised daily report template 5. Recommendations for revised disturbance report template 6. EMS/SCADA implementation and recommendation report

Develop bidding model for maintenance procurement FY20.3.04.05

01/15/20 -03/31/20

1. Develop bidding model for maintenance procurement 2. Train TCN staff

Support procurement for 631 MW West Africa Power Pool (WAPP) project FY20.3.04.06

04/01/20 – 09/28/20 1. Support TCN to develop Expression of Interest (EOI) documents for specialized procurements

2. Support TCN to develop Request for Proposal (RFP) 3.



Technical Deliverables 03/31/19 05/15/20 12/31/20 09/30/20

A. Working document B. EMS/SCADA Implementation and Recommendations Report C. TCN Bidding Model D. Working document [See contractual deliverables: PATT Update; also, transaction updates included in quarterly progress and annual reports]



OUTCOME 4 | PROMOTE IMPROVED LIQUIDITY (DISTRIBUTION)


Distribution performance in Nigeria traditionally has been poor, and the entire sector has been plagued with insufficient tariffs, low collections and remittances, high ATC&C losses, frequent load rejection, aging infrastructure, and limited investment. Presently the DISCOs remit less than 30 percent of their revenues to the Market Operator and NBET and owe over Naira 1.1 trillion to the electricity market. The system is struggling with a wheeling capacity of less than 5,000 MW, and only 45 percent of households in Nigeria have access to electricity. Those who do have access to grid-based power experience frequent power cuts and erratic supply. By mid- 2019, there already were nine total system blackouts, which is entirely unheard of for a modern electricity supply industry.

Meter penetration is less than 50 percent, and DISCOs rely heavily on estimated billing. This results in inflated bills and has left the DISCOs with disgruntled customers who often contest bills and refuse to pay. To finance the necessary metering infrastructure and curb the reliance on estimated billing, NERC established the Meter Asset Provider (MAP) program.

The assessments, diagnostics, and focus reports completed over the past year formulate the basis for PA-NPSP DISCO support for FY20. The FY18/19 assessment reports conducted by PA-NPSP provided the foundation for developing the FY20 work plan. The assessments examined the previous work performed under the Power Africa Transactions and Reforms Program (PATRP) and evaluated the potential for continuing and expanding on the progress that PATRP achieved. In addition, detailed interviews with key staff members as well field-based employees assisted in providing lessons learned that have been incorporated into FY20 implementation plans and activities.

PA-NPSP’s major areas of support in distribution throughout the five-year program are classified into focus area and enabling area interventions. These are shown in the distribution framework below. Focus interventions (in red) are those that will address both key problems and root causes, and lead to a direct impact on the monitoring, evaluation, and learning (ME&L) indicators (in light blue). Enabling interventions (in dark blue) are those that are necessary to the success of the focus interventions but do not directly affect the ME&L indicators.

Distribution

Improved distribution operational performance to increase commercial viability of value chain


• Completed appraisals of PATRP and non-PATRP DISCOs

• Analyzed DISCO training needs • Assessed MAP regulations

FY20 Overview

Focus Areas • Accelerate the Meter Asset Provider

program implementation • Assist DISCOs with developing a

standardized approach to the development PIPs

• Extend USAID support for operational improvement in revenue protection, billing, collections

• Support DISCO staff to develop capacity to improve operations

Primary Stakeholders DISCOs (AEDC, EKEDC, IE, PHEDC, among others), meter asset providers, NERC, AFD


Figure 1: PA-NPSP Distribution Framework

The primary objective of PA-NPSP’s distribution interventions in FY20 is to increase the number of connections achieved through metering; to reduce ATC&C losses through improved operations and customer service at targeted DISCOS; and to increase energy throughput by optimizing DISCO operations and DISCO staff capacity building.

PA-NPSP’s focus in the coming year will include:

• Accelerate the MAP program to effectively install meters for new and unmetered customers, contributing to reduced ATC&C losses going forward.

• Extend USAID support for operational improvement in revenue protection and billing and collections

• Develop capacity to ensure DISCO staff are adequately trained to improve operational performance

PA-NPSP will provide capacity building and support to all the Nigerian DISCOs committed to operational and financial improvement during FY20, including technical assistance to support the MAP rollout and PIP development and implementation across the DISCOs. This expanded support to all interested DISCOs will help achieve meaningful performance improvement in regions of Nigeria outside Abuja and Lagos. Additionally, PA-NPSP has identified four DISCOs for continued and substantive support in FY20 using criteria based on receptiveness, security, geopolitical visibility, customer base, ATC&C losses, % metered customers, etc. PA-NPSP will focus on AEDC, EKEDC and IE, as the three DISCOs with the best overall performance in the sector, as well as Port Harcourt Electricity Distribution Company (PHEDC), which has expressed commitment and enthusiasm to working with PA-NPSP particularly in metering. With this approach, PA-NPSP aims to maximize progress of both the MAP and PIP initiatives. PA-NPSP will assist DISCOs with the development of their PIPs and MAP implementation plans and support these development initiatives with facilitated MAP and PIP seminars/working groups. The seminars/working groups will provide a platform to share successes, strategies, and best practices to all DISCOs. PA-NPSP


will provide dedicated support to three DISCOs (AEDC, EKEDC, IE), utilizing advisors with a combination of skills in business strategy and planning, commercial operations, metering, project and distribution management. PA-NPSP will supplement this dedicated support with focused training and short-term technical expertise on a flexible and as-needed basis. PA-NPSP’s train-the-trainer approach and training sustainability is continuously incorporated throughout the remainder of the contract by identifying appropriate DISCO personnel at the onset who will continuously enhance and sustain the training following the conclusion of PA-NPSP. Once these trainers are identified they will be trained on the fundamentals of training and adult learning, assist in the initial training sessions led by PA-NPSP experts to enable them to co-facilitate future training. Continuous follow-up on subsequent training sessions from the PA-NPSP technical advisors throughout the remainder of the contract will resolve issues and provide ongoing support to ensure long-term sustainability of the training courses.

The fourth DISCO PA-NPSP has selected for targeted assistance is PHEDC, whose operations are plagued with exceptionally high ATC&C losses, poor collections and non-existent Distribution Transformer (DT) metering. PA-NPSP will continue the support to PHEDC along the lines of USAID’s previous program assistance, with a focus on loss reduction strategy, revenue protection and a pilot DT metering project. PA-NPSP will develop a DISCO-wide DT Metering Transformation Plan that will provide a road map for PHEDC to follow as they roll out best practices, policy, and reforms throughout the DISCO. The plan will provide an approach as to how to leverage lessons learned and revenue saving from implemented areas into the follow-on business units’ implementation. Once the plan has been developed and approved by PHEDC senior management, PA-NPSP will identify a pilot Business Unit (BU) in PHEDC that will be used as a proof of concept of the transformation plan and support the BU as it implements the best practices for optimization of revenue protection and metering to achieve progressive improvements in loss reduction and collections. The results of the pilot program will demonstrate the positive impacts that the transformation plan will have on the entire DISCO. PA-NPSP, depending on cost and available funding, will supply a limited number of meters and optimize one BU as a proof of concept of the transformation plan. PHEDC senior management and board members will commit to using the increased revenues to purchase additional meters and implement the transformation plan DISCO-wide. During implementation, PA-NPSP staff will review, draft and implement new commercial processes and train the appropriate staff. Once the staff in the pilot BU are trained and performing efficiently and to target, they will be used to expand to other BUs.

The top challenges in the distribution sector continue to be centered on the lack of a cost-reflective tariff and policy/regulatory support and transparency. FY20 interventions focus on areas that will allow a modicum of control to influence their completion and improve DISCO performance in the necessary areas for financing and other improvements.

A key assumption for the success of the distribution interventions centers on cost-reflective tariffs continuing to be part of the ongoing narrative for sector improvement and progress. Without cost-reflective tariffs, financial interventions by multilaterals and investors will not proceed, and performance, reliability and sector remittance by the DISCOs will continue to decrease.

Intervention 4.01: Provide assistance to the Meter Asset Provider (MAP) program

Objective:

• Accelerate customer metering in Nigeria

PA-NPSP, for each of the DISCOs being supported, will conduct a meter availability study that will be the initial step in developing a metering implementation plan. The metering availability study will provide a realistic forecast of available meters both from domestic and foreign sources and the timing of the availability. The results of the meter availability study will be an input to developing the metering implementation plan and schedule that the DISCO will follow and monitor for progress. PA-NPSP also will help the DISCOs review their implementation plans and come up with suggestions to handle


implementation issues, backlogs, and monitoring bottlenecks. In addition to the meter availability study and implementation plan development/review, PA-NPSP will conduct and facilitate a quarterly MAP workshop and working group with participants from all DISCOs, MAPs, and NERC. These workshops/working groups will provide a forum to host specific trainings, lessons-learned workshops, best-practice discussions and problem solving. While PA-NPSP will support AEDC, EKEDC, and IE directly, the other DISCOs will be invited to participate in the interactive seminars and workshops. PA-NPSP will facilitate working groups that will present case studies, share experiences on implementing the project, and discuss mitigation strategies for various issues, thereby aiding exchange of knowledge among the working groups. PA-NPSP will facilitate the entire process and present lessons learned from actively working with the DISCOs on the project and share experiences on implementing metering projects in other locations while incorporating best practices. The success of this program will be measured by PA-NPSP through the monthly progress report of each DISCO on number of customers metered and the comparison statement for on-site planned and actual execution by each DISCO.

PA-NPSP also will provide a comprehensive training program to ensure a select group of stakeholders of the MAP program are sufficiently trained to provide for efficient and extensive implementation to meet customer demand:

• DISCO Level – Develop meter inspection and MAP supervision training for field staff to properly inspect meter installations. Train the trainer programs piloted at AEDC, IE and EKEDC focused on sustainable training within the DISCOs. Potential for roll-out and presentation of training programs at MAP workshops for all DISCOs.

• MAP Level – Review and update MAP installation certification currently conducted through the National Power Training Program in Nigeria (NAPTIN). Work with NAPTIN to expand the program to accelerate training of installers to facilitate large-scale roll-out.

• Meter Testing Level – Work with Nigeria Electricity Management Service Agency (NEMSA) to improve the timeline of meter testing activities to comply with NERC regulations and facilitate the large-scale roll-out of MAP through training programs

In addition, PA-NPSP has identified lack of financing for MAPs as a major barrier to large-scale roll-out. PA-NPSP will work with the MAPs and the financial community to identify sources and financial structures that will accelerate MAP program implementation.

Table 17: Intervention 4.01 Activities and Deliverables (Distribution)


Conduct a Meter Availability Study FY20.4.01.01

10/01/19 –03/31/20

1. Develop a study to determine the forecast volume of meters that can be made available for MAP installation.

Develop a Meter Installation Plan and Schedule FY20.4.01.02

10/01/19 – 09/30/20

1. Develop a meter installation plan and schedule to monitor progress of MAP meter implementation.

Conduct Quarterly MAP working group (PMs from all DISCOs, MAPs, NERC) FY20.4.01.03

10/01/19 – 09/30/20

1. Develop standard procedures for project managers of MAP program (for DISCOs and MAP).

2. Provide a quarterly forum to problem solve and a working group to share information across DISCOs.

Support meter inspection and MAP supervision training for DISCOs FY20.4.01.04

10/01/19 – 12/31/19

1. Develop training courses and train-the-trainer procedures for DISCO MAP PMs. Work with MAP providers to reach women and members of disadvantaged and marginalized groups for training and job opportunities.



Support meter installation training and certification review for MAP FY20.4.01.05

01/01/20 – 03/31/20

1. Work with NAPTIN to optimize MAP installer courses and facilitate expansion of program to meet current needs.

Provide training for NEMSA in meter testing and certification FY20.4.01.06

04/01/20 – 06/30/20

1. Coordination with NEMSA to enhance training materials and meter testing/certification documentation.

Facilitate MAP finance FY20.4.01.07

04/01/20 – 06/30/20

1. Quantify financing requirements and identify potential financing models 2. Engage potential financing sources

Technical Deliverables 03/31/20 A. Meter Availability Forecast, Installation Plan, and Schedule (report for each supported DISCO)

Intervention 4.02: Develop and implement a standardized approach to the development of performance improvement programs for selected DISCOs

Objective:

• Improve DISCO operations to: (1) strengthen DISCOs financial, technical and commercial operations, (2) reduce commercial and technical losses, (3) improve financial transparency, viability and sector liquidity, and (4) support metering strategy

Advisors will be working within AEDC, EKEDC, and IE to provide the following assistance:

• Compile a program of tailored technical assistance based on the results of the individual DISCO diagnostics for performance improvement and metering strategy

• Implement strategies to support performance improvement, including:

o Identify KPI impact of PIPs to individual DISCOs and tariff impact of the investment decisions. PA-NPSP will assist by identifying and scoping projects, developing an implementation plan, understanding the potential impacts of projects, and forecasting the costs involved.

o Improve revenue protection and control by monitoring existing revenue protection units and replicating these efforts in regional offices. Develop a whistle blower policy and implement the procedure to reduce energy theft.

o Strengthen the DISCO PMO function to focus on change management and reinforce the value to senior management for effective implementation and monitoring of special projects.

• Support metering strategy and deployment to reduce commercial losses, including:

o Improve billing and collections by developing a procedure to transfer customers from estimated billing to the vending system to avoid duplication. Provide project management and trouble-shooting support for customer billing system amalgamation and/or purchase.

o Review, comment, and make suggestions on metering strategy and deployment plans.

o Target detailed support to the MAP project management units within the DISCOs to facilitate coordinated roll-out of the metering plan

o Coordinate communication campaigns for customer awareness of MAP program.


o Incorporate the reciprocal basis for cooperation in a memorandum of understanding or other instrument, with USAID consensus, including a Letter of Cooperation.

For PHEDC, a DISCO with high commercial losses, poor collection and low distribution level metering, PA-NPSP will provide advisors from the local Port Harcourt area with experience in distribution operations and energy accounting to work with the selected pilot BU. The pilot BU will be chosen based on the Metering Transformation Plan, ATC&C losses, ease of access, concentration of customers, customer mix and lack of DT metering.

Strategies for the pilot project include:

• Improve commercial processes for marketers, meter reading, billing, bill delivery, enumeration, pre-paid meter inspections, disconnections and collections

• Implement performance management and analysis practices • Implement revenue protection strategies • Perform operational audits of activities • Meter DT and 11 kv feeders for energy accounting



Support revenue protection and loss reduction strategies at AEDC, EKEDC and IE through dedicated support FY20.4.02.01

10/01/19 – 09/30/20

1. Support identified DISCOS to expand revenue protection and loss reduction strategies to improve performance.

2. Develop or review whistleblower policies

Support performance improvement through implementation of business plans at AEDC, EKEDC, and IE under the current tariff FY20.4.02.02

10/01/19 – 09/30/20

1. Support PA-NPSP DISCOs to implement business plan investment strategies under the privatization guidelines until PIPs are approved.

2. Support PA-NPSP DISCOS to implement investment strategies under NERC guidelines following PIP approval

Support meter deployment strategies and project managers at AEDC, EKEDC, and IE FY20.4.02.03

10/01/19 – 09/30/20

1. Support metering strategy, project management and meter deployment at AEDC, EKEDC and IE

2. Support meter deployment strategies at other DISCOs remotely as required

Support NERC implementation of MAP program FY20.4.02.04

03/01/20 – 06/30/20

1. Support NERC for monitoring MAP and resolving policy and implementation issues.

Develop PHEDC Meter Transformation Plan and implementation strategy FY20.4.02.05

10/01/19 – 02/28/20

1. Develop DISCO-wide meter transformation plan and implementation strategy for PHEDC

Select PHEDC pilot BU for support and develop strategy FY20.4.02.06

10/01/19 – 01/31/20

1. Work with PHEDC to select a pilot BU 2. Develop strategy for commercial process improvement for loss reduction

and revenue protection

Implement loss reduction and revenue protection strategy at PHEDC

01/01/20 – 09/30/20

1. Implement PHEDC pilot BU strategy 2. Procure and install DT and 11kv meters (dependent on funding availability)



FY2.4.02.07

Technical Deliverables 01/31/20 A. PHEDC Meter Transformation Plan

Intervention 4.03: Prepare and implement capacity building programs for Nigeria-wide technical assistance program for DISCOs

Objective:

• Increase capacity within the DISCOs to implement new programs and improve operations

PIP Development: With PIP development and implementation a high priority for distribution sector reform, PA-NPSP will use the experience gained working directly with AEDC, EKEDC and IE to assist the DISCOs with the development of their respective PIP. The development of the PIPs will incorporate the use of standardized approaches, methodologies and templates that will create a uniform output across the DISCOs. The uniform output will enable stakeholders (NERC, BPE, ANED) to better understand and analyze PIPs both from an individual DISCO as well as a sector wide perspective. To support the PIP development and subsequent reviews, PA-NPSP will create seminars with all DISCOs to assist them during the development of their respective PIPs. Presentations and workshops by PA-NPSP. DISCOs and NERC will provide the DISCOs with appropriate learning to improve the development and implementation of their PIPs. PA-NPSP will provide these seminars on an as-needed basis with a minimum of two in FY20.

Tariff Setting: Training on tariff setting as per the multi-year tariff order (MYTO) is essential to provide timely and correct inputs to build a DISCO tariff application for minor and major tariff reviews. Specifically, for the distribution sector, PA-NPSP will provide training related to the tariff inputs affecting the business and the requisite negotiation skills to achieve a fair and adequate tariff. To improve tariff applications and tariff setting, PA-NPSP will coordinate training with stakeholders across the sector. This will include but not be limited to engaging training organizations, sub-contractors, and/or institutions (NARUC) that will be able to conduct the required training for partner DISCOs. Training is envisioned to be conducted locally without the need for participants to travel internationally.

Energy Accounting: PA-NPSP will develop materials and conduct training to enhance the understanding of revenue cycle management and other financial reporting impacts. This training will develop a deeper understanding of energy accounting that will improve collections and customer satisfaction and outline a billing procedure for both pre-paid and post-paid customers.



Support the development of DISCO PIP with AEDC, EKEDC and IE FY20.4.03.01

10/01/19 –02/29/20

1. Support identified DISCOs with the development of PIPs using standardized approaches, methodologies and templates

Deliver PIP seminar FY20.4.03.02

03/01/20 –06/30/20

2. Support PIP development and implementation through a workshop to impart lessons learned and training opportunities

Technical Deliverables 06/30/20 A. PIP Workshop Report



PROJECT MANAGEMENT OFFICE


PROJECT MANAGEMENT OFFICE PA-NPSP utilizes a centralized PMO to actively lead and manage cross-cutting activities in support of PA-NPSP’s Outcome teams, with responsibility for the following program elements:

• Partnerships, Alliances, and Coordination • Communications and Outreach • Gender and Social Inclusion • Environmental Compliance and Social Impact • Results Management, including Monitoring,

Evaluation, and Learning and Knowledge Management

Under the leadership of the PMO Lead, component managers and advisors are responsible to carry out interventions and activities assisted by specialists in communications, gender, ME&L, and other practice areas, working in cooperation with related outcome teams.

PARTNERSHIPS, ALLIANCES, AND COORDINATION

Intervention PMO.01: Maintain strong, productive relationships with Power Africa and USAID/Nigeria; FGN, private sector, and civil society counterparts; and development partners

Power Africa and USAID/Nigeria

During FY18/19 PA-NPSP regularly took part in Power Africa forums to enhance coordination and communication and harmonize practices, consulted with Power Africa about communications priorities and technical guidance and continuously coordinated with USAID/Nigeria.

During FY20, PA-NPSP will continue to closely coordinate and communicate with Power Africa, USAID/Nigeria, and Power Africa implementing partners, including Southern Africa Energy Program (SAEP), West Africa Energy Program (WAEP), East Africa Energy Program (EAEP), the Power Africa Off-grid Project (PAOP), and the National Association of Regulatory Utility Commissioners. In line with this, PA-NPSP took part in the Towards a Unified Approach Amongst Power Africa Task Orders gathering for implementing partners in Pretoria in August to jointly explore management of qualification of transactions, communications, partner due diligence, environmental assessments, gender, and ME&L. All implementing partners committed to maintain the momentum that was established, with interest in regular Skype conferencing, technical working groups, information-sharing portals, and similar ways to continue to cooperate. PA-NPSP already regularly engages with SAEP and WAEP to align program management systems and approaches, replicate and amplify leading practices, and share lessons and technical resources.

Recognizing the integral role that collective problem-solving and resources play in Power Africa’s work, PA-NPSP will expand and highlight cooperation with Power Africa partners, including U.S. Government agencies, such as the U.S. Trade and Development Agency and U.S. African Development Foundation; development partners, such as the African Development Bank and World Bank Group; and private sector actors, such as Azuri Technologies and InfraCredit. This includes supporting Power Africa’s strong linkages with Prosper Africa and the U.S. International Development Finance Corporation to increase two-way investment and trade to advance U.S. competitive advantage, with a sharpened program focus on competitiveness in market intelligence, transaction support, and technical assistance. Activities will include

Project Management Office

Integrated results management, stakeholder relations, gender, communications, environmental services


• Championed Women’s Leadership • Established Environmental Compliance and

Social Impact Framework • Launched Monitoring Evaluation and

Learning Plan

FY20 Overview

Focus Areas • Facilitate partnerships, alliances, and

coordination • Showcase successes and impact • Promote gender equity and social inclusion • Support environmental accountability • Manage results and learning Primary Stakeholders Mission leadership, program leadership, technical teams, gender and environmental communities of practice and civil society actors


working with utilities, regulators, and ministries to improve the business climate and address impediments to investment; providing general briefings on the energy sector business climate for U.S. companies; supporting in-country interagency partners with energy-related competitiveness initiatives; and tracking and reporting involvement of U.S. companies in PA-NPSP programming.

PA-NPSP will engage with the Power Africa Coordinator Office (PACO), Power Africa’s interagency liaisons in Pretoria and Washington, DC, and other relevant U.S. Government entities to assist with coordination, track interagency contributions, and identify and fill any strategic gaps in Power Africa’s support environment. PA-NPSP will undertake on-demand data gathering and analysis and will present Power Africa’s interagency efforts and results in an engaging, inclusive, and compelling manner. Moreover, PA-NPSP will coordinate its activities with the Power Africa Washington and Pretoria teams to provide input on priorities and keep both teams informed about activities and developments through regular visits, field updates, and monthly and quarterly reporting. The PA-NPSP contact list of team members will clearly define who is responsible for what technical work streams, so that Power Africa can reach out directly to team members when seeking information. Program representatives also will attend Power Africa forums and events as requested.

FGN, Private Sector, and Civil Society Counterparts

During FY18/19, PA-NPSP established a diverse mix of enabling partnerships and alliances, including FGN entities, private sector actors, and civil society organizations. This close engagement furthered technical interventions and contributed to PA-NPSP’s overall performance as well as enhanced sustainability of results.

In FY20, PA-NPSP will continue to provide technical assistance to counterparts and partners, with a sharpened focus on those that have proven motivation and initiative to address Nigeria’s energy sector needs. These stakeholders will work in partnership with PA-NPSP to design and carry out interventions and will commit their own resources to contribute to achieving PA-NPSP and Power Africa goals. In addition, the PA-NPSP team will identify new local, national, regional, and international institutions and organizations that can enrich PA-NPSP’s approach and performance.

Figure 2: Civil Society Engagement

Civil Society Engagement

During FY18/19 PA-NPSP established strong relations with civil society actors in the energy sector. In FY20, PA-NPSP will expand the scope and scale of this engagement to enhance the program’s reach and strengthen results through:

• leveraging civil society outreach, knowledge, experience, and field-tested practices, including at state and local levels

• expanding availability of evidence and analysis to inform decisions related to gender and social inclusion in the sector

• promoting consultations with women and other marginalized populations to understand and respond to priorities and concerns

• supporting service delivery to underserved areas and populations

• assisting counterparts to inform and educate consumers on the energy system, policies, and progress as well as consumer rights and responsibilities

• partnering to widen participation in technical, capacity development, and networking events

At the core of this cross-cutting work, PA-NPSP will facilitate productive collaboration between civil society organizations, FGN entities, and private sector actors to attain common aims and reinforce gains. A primary focus will be on reaching marginalized groups and promoting gender and diversity in the energy sector. Several civil society organizations serve on the PA-NPSP-hosted Nigerian Women in Energy Leadership Group, exploring


strategic avenues to enhance women’s participation in the energy sector and providing advice and feedback on best approaches to achieve PA-NPSP gender goals. PA-NPSP has several activities in the planning stage involving partnership with civil society. In the off-grid space, this includes sharing best practices and networking to serve “last mile” areas. This addresses requests for assistance from SHS companies and stands to benefit isolated, underserved populations with better access to electricity. In addition, PA-NPSP plans to collaborate with REAN, Solar Sister Nigeria, Clean Technology Hub, and other civil society groups on networking events; articles and other content on women in the energy sector; capacity building around professional development; and social inclusion research and follow-on activities.

Development Partners

During FY18/19, PA-NPSP was well positioned to assist USAID/Nigeria to strengthen development partner coordination and communication to promote common aims, enhance efficiency, and avoid duplication. Advancing this process, PA-NPSP hosted a technical assistance workshop in April 2019 with participation of the leadership of all major donor organizations active in the country’s on- and off-grid power sector, PA-NPSP’s local and international implementing partners, and the U.S. Trade and Development Agency as well as other US Government representatives. With this event, in conjunction with USAID/Nigeria, PA-NPSP collectively built alignment around a set of objectives for the sector; establishing the technical assistance needed to deliver on those objectives; and fostering collaboration and aligned action among donors.

During FY20, PA-NPSP will continue supporting donor community aims to enhance coordination and communication through:

• Improved knowledge sharing, information exchange, and collective learning • Aligned assistance approaches and messaging to FGN and other local stakeholders • Strengthened programming synergies and address redundancies • Enhanced credibility and resilience of the donor community

PA-NPSP also will continue to assist development partners to promote power sector activities, such as recent high-profile events co-hosted with the U.S. Trade and Development Agency, Agence Française de Développement, the European Union, WBG, AFDB, and others. PA-NPSP also will coordinate with development partners in Washington D.C. through US-based Deloitte technical team members to maintain a flow of communications between field and headquarters teams.

Table 20: Intervention PMO.01 Activities and Deliverables (Partnerships, Alliances, and Coordination)


Regularly update development partner map and other resources to guide partnership and alliance strategies FY20.PMO.01.01

10/01/19 – 09/30/20

1. Consult with development partners on changes in funding and programs, revise matrix, and disseminate quarterly

2. Monitor changes in energy sector stakeholder entities, and update organizational chart as needed

Track and report on PA-NPSP events and participation in national and international forums and events FY20.PMO.01.02

10/01/19 – 09/30/20

1. Monitor schedule of energy sector forums and events 2. Organize speakers and materials as requested 3. Provide program event calendar and descriptions to Power Africa and

USAID/Nigeria

Technical Deliverables Quarterly 09/30/20

A. Development Partner Activity Matrix (partnership map) updated quarterly

B. International event presentations


COMMUNICATIONS AND OUTREACH

PA-NPSP’s Communications and Outreach team provides cohesive support to promote PA-NPSP accomplishments, strategically engage with stakeholders, and deliver on the communication and outreach priorities of Power Africa within Nigeria.

During FY18/19 the Communication and Outreach team laid the strategic foundation for program communications and USAID and Power Africa branding and marking; established event planning and management procedures; designed program reporting and other templates; developed communication products, such as fact sheets and feature stories; and prepared technical deliverables for submittal to USAID/Nigeria and Power Africa.

During FY18/19, the PMO Lead along with Communications and Outreach and ME&L handled the hands-on development of contractual deliverables, including quarterly progress reports. In FY20, Communications and Outreach will lead the planning and coordination of contractual deliverables and continue to support PA-NPSP technical deliverables, working closely with ME&L and technical teams.

Intervention PMO.02: Promote PA-NPSP accomplishments, and deliver on Power Africa communication and outreach priorities in Nigeria

In FY20, the Communications and Outreach component will review the PA-NPSP Branding and Marking Plan (May 2018), an FY18/19 contractual deliverable, and Communications Strategy (November 2018) to ensure these remain compliant with and relevant to USAID and Power Africa requirements and priorities. As part of the FY20 communications refresh, PA-NPSP will work with Power Africa and USAID/Nigeria communications experts to map expanded engagement with print and electronic media to improve understanding of and reporting on the power sector in Nigeria. Activities will include providing journalists with key energy facts and figures to enhance the accuracy of information conveyed to the public and organizing and participating in events such as the Journalist Seminar hosted by the U.S. Consulate’s Public Affairs section in Lagos in March 2019. PA-NPSP will target a regular flow of news items for the USAID/Nigeria “Naija Weekly” and US Embassy’s quarterly publication, “Crossroads.”

PA-NPSP will strengthen PA-NPSP’s communications with target audiences to broadcast successes, innovative approaches and practices, and lessons that can benefit Power Africa across the region. This will result in a substantial portfolio of feature stories, interviews, “hero” profiles, videos, social media posts, technical fact sheets, and other editorial and marketing products.

In addition, the Communications and Outreach component will provide expertise and assistance to technical teams, counterparts, and partners in line with activities set out under each outcome, such as:

• Supporting broadened, scaled-up outreach to boost participation of women and other under-represented groups in SHS capacity development initiatives (such as GIZ’s Skill-Up) and other activities that enable marketplace entry and advancement;

• Supporting development of online training courses and other methods that can expand the reach of off-grid capacity development in ways that allow and encourage greater social and gender participation and inclusion;

• Supporting NERC to articulate a vision for sector development that includes strong outreach and strategic communications elements to keep stakeholders informed and engaged;

• Supporting DISCOs to develop meter deployment strategies with strong outreach and communication campaigns to raise customer awareness and integrate public feedback to improve targeting and effectiveness.

These technical assistance activities will be finalized in consultation with counterparts and partners taking into consideration those motivation and readiness to engage.


Communications and Outreach will support the development and submittal of technical deliverables, as specified in the PA-NPSP Annual Work Plan. This will involve editing and formatting drafts in compliance with style, marking, and branding in accordance with the approved PA-NPSP Branding and Marking Plan; tracking responses to comments; and ensuring PA-NPSP internal sign-offs are complete before submittal to USAID/Nigeria for review and approval. The team also will edit all major PA-NPSP publications before release to USAID/Nigeria and others to improve style, organization, logic, readability, accuracy, spelling, grammar, punctuation, and similar.

In addition, under the COP and the PMO Lead, Communications and Outreach will guide the development and submittal of (non-financial) contractual deliverables, specified as reporting requirements in the program contract. This will involve planning and coordinating the overall process across management and technical teams, including assigning and scheduling tasks; compiling, editing, and formatting drafts in compliance with style, marking, and branding in accordance with the approved PA-NPSP Branding and Marking Plan; tracking responses to comments; and obtaining PA-NPSP internal sign-offs before submittal to USAID/Nigeria for review and approval. See Appendix A: PA-NPSP Contractual Deliverables (FY20).

Table 21: Intervention PMO.02 Activities and Deliverables (Communications and Outreach)


Maintain up-to-date knowledge and resources on Power Africa, USAID/Nigeria, and other relevant communications strategies, policies, and guidance FY20.PMO.02.01

10/01/19 – 09/30/20

1. Coordinate with USAID/Nigeria, Power Africa, and others on requirements, guidance, and priorities and participate in relevant community-of-practice groups.

2. Review and update PA-NPSP Branding and Marking Plan and PA-NPSP Communications Strategy, as needed.

3. Organize and update library of compliant templates and tools. 4. Organize and update library of images, such as photos, videos, and

infographics.

Support PA-NPSP staff, counterparts, and partners with communications expertise FY20.PMO.02.02

10/01/19 – 09/30/20

1. Provide advice and assistance to reach target audiences, select channels, develop messages, and produce materials.

2. Regularly participate in PA-NPSP technical meetings, discussions. 3. Organize trainings, refreshers, and other learning opportunities.

Develop program and technical marketing and collateral materials FY20.PMO.02.03

10/01/19 – 09/30/20

1. Design, produce, and/or update program and technical area collateral, such as program fact sheets, talking points, technical area one-pagers.

2. Assist development of marketing and promotional materials

Develop communications plans and products FY20.PMO.02.04

10/01/19 – 09/30/20

1. Maintain editorial calendar. 2. Develop editorial pieces, including news content, feature stories,

interviews, profiles, articles, videos, social media posts, and similar products in collaboration with technical teams, counterparts, partners, and others.

3. Assist partners to develop institutional strategic communications plans (i.e. PPI, CBN, NERC).

Coordinate event planning and management FY20.PMO.02.05

10/01/19 – 09/30/20

1. Establish general operating procedures for event planning and management.

2. Maintain event calendars for internal and USAID purposes. 3. Plan and manage implementation of PA-NPSP annual work planning retreat 4. Plan and manage implementation of events in coordination with PA-NPSP

technical and operations teams, counterparts/partners, and others. 5. Help prepare event materials, such as agendas, talking points, banners, and

post-activity or event summary reports.



Support development and submittal of technical deliverables FY20.PMO.02.06

10/01/19 – 09/30/20

1. Assist outcome leads with development and submittal of technical deliverables.


A. PA-NPSP Communications Strategy (Revised) B. Marketing and collateral products C. Communications Products [See contractual deliverables: Branding and Marking Plan (Review); also see technical deliverables under each work plan intervention]

GENDER AND SOCIAL INCLUSION

Significant disparities exist between women and men in terms of access to energy and participation in the energy sector. Gender gaps in education, employment and entrepreneurship compound the issue. As highlighted in the Power Africa Gender Analysis for Nigeria (2017), women are disproportionately affected at all levels by lack of access to energy and are underrepresented as leaders, policy makers, and influencing voices. Reinforcing these findings, PA-NPSP’s recent Pathway to Impact review pointed to the persistent marginalization of women and other groups in dialogue and decision-making on energy needs, uses, and priorities as well as missed opportunities for public and private-sector actors to gain access to talent and benefit from diverse perspectives, skill sets, and experiences.

By addressing gender and social inclusion goals, PA-NPSP ensures that women and men of different social, cultural and religious backgrounds have the chance to benefit equally from its interventions and that existing inequalities are not perpetuated. These measures can mitigate the risk of exacerbating latent tensions and can lead to more effective, sustainable results. Mainstreaming gender and social inclusion into off-grid activities with REA, for example, will ensure that women-owned SMEs benefit from electricity and that marginalized groups can participate in community-level consultations and access new job opportunities. Addressing gender across the SHS value chain will economically empower women, promoting poverty reduction and supporting them to meet their education, food security, and health goals, among others. Setting targets for the participation of women and diverse groups in capacity building activities in on- and off-grid and distribution technical areas will allow individuals who might have previously been excluded from such opportunities to grow their skills, benefit from networking, and advance in their careers.

The FY18/19 PA-NPSP Gender and Social Inclusion Action Plan (GSAP) set out the following objectives:

• Maximize opportunities to include women in decision-making and leadership roles • Foster an inclusive and equitable workplace culture in public and private energy institutions • Develop a significant pipeline of women with relevant technical and professional skills to meet

sector labor demands • Advance women-owned businesses and women entrepreneurs • Maximize positive – and minimize negative – implications of PA-NPSP and stakeholder

interventions on communities

The Pathway to Impact review validated the relevance of these objectives. The process also confirmed the value of PA-NPSP’s two-track implementation approach – mainstreaming sensitivity to gender and diversity across all technical areas and interventions, while accelerating women’s opportunities for empowerment, leadership, and activism within the program and across the energy sector.

In line with these objectives and ongoing consultations with PA-NPSP government, private-sector, and civil society stakeholders, PA-NPSP achieved several of its aims in FY18/19 and succeeded to establish a


strong leadership and networking platform for women active and interested in the energy sector, hosted trainings and events, and produced and distributed communications materials.

Intervention PMO.03: Support energy sector policies and interventions aimed at equitable inclusion and ensure activities are gender-sensitive and inclusive.

Through FY18/19 outreach and events, PA-NPSP developed strong relationships with stakeholders across the energy sector and established an extensive database of contacts. As detailed below, in FY20 PA-NPSP will leverage these relationships and build on existing efforts, providing staff, counterparts, and partners with technical guidance and assistance and intensifying the focus on research and awareness, capacity development, and leadership and networking:

• Conduct action research on themes that address stakeholder needs and priorities and create a repository of data that can be applied to enhance gender and inclusivity awareness and access to information, opportunities and services.

• Create professional and technical capacity development opportunities targeting women and marginalized groups in the public and private energy sector to improve skills for retention and career advancement.

• Support energy sector institutions, businesses, and organizations to establish and implement gender responsive policies and action plans.

• Facilitate leadership and networking opportunities to help women energy entrepreneurs, public sector personnel, and members of marginalized groups to enter, grow and progress within the sector.

Table 22: Intervention PMO.03 Activities and Deliverables (Gender and Social Inclusion)


Maintain up-to-date knowledge and resources on Power Africa, USAID/Nigeria, and other relevant gender and social inclusion strategies, policies, and guidance FY20.PMO.03.01

10/01/19 – 09/30/20

1. Coordinate with USAID/Nigeria, Power Africa, and others on requirements, guidance, and priorities and participate in relevant community-of-practice groups

2. Review and update PA-NPSP Gender and Social Inclusion Plan, as needed 3. Create / update library of relevant gender policies, toolkits, reports, and

similar resources.

Support PA-NPSP staff, counterparts, and partners with gender and social inclusion expertise and outreach FY20.PMO.03.02

10/01/19 – 09/30/20

1. Provide advice and assistance to PA-NPSP team to plan, implement, analyze and report interventions through gender and diversity lens.

2. Work with staff to develop outreach mechanisms for program capacity-building activities to target inclusion of women and members of marginalized groups

3. Regularly participate in PA-NPSP technical meetings, discussions 4. Organize awareness sessions, trainings, refreshers, and other learning

opportunities 5. Conduct gender and social inclusion research to inform evidence-based

programming 6. Maintain repository of statistics and relevant data sets

Foster collaboration with energy institutions to design, conduct and manage awareness-raising, capacity development, leadership, and networking activities for women and other marginalized groups

10/01/19 – 09/30/20

1. Conduct five-day professional development courses for women in energy sector for 1-7 years. Partners include: REA, REAN, DISCOs, NERC, TCN, NBET, Solar Sister, All On, private sector companies

2. Host women’s development and networking events. Partners include: REA, REAN, DISCOs, NERC, TCN, NBET, Solar Sister, All On, Clean Technology Hub Girls Voices, private sector companies



FY20.PMO.03.03


A. Professional development training materials B. “Social Inclusion and Diversity in Nigeria’s Energy Sector” research report

In addition, PA-NPSP will mainstream gender and social inclusion and accelerate women’s opportunities into outcome interventions, as described under the Technical Activities section of the work plan and summarized in the table below.

Table 23: Intervention PMO.03 Activities (Gender and Social Inclusion: Technical Activity Matrix)

Activity Start – End Date Sub-Activities Outcome 1: BPE Board of Director capacity building for BPE board representatives (FY20.1.05.03)

11/18/19 – 09/30/20 • Work with stakeholders to increase participation of female BODs in the training.

Outcome 2: Provide strategic advisory support to SHS companies and mini grid developers (FY20.2.02.03)

10/01/19 – 06/30/20 • Create awareness about gender mainstreaming strategies for SHS companies and developers.

• Integrate gender and social inclusion considerations into strategic Advisory support provided to SHS minigrid projects/portfolios.

Outcome 3: NERC gender- and diversity-responsive communications strategy

See note • NOTE: A UK NIAF-funded consultant will support development of NERC communications strategy, with PA-NPSP gender/communications input, as needed

Outcome 4: Conduct quarterly MAP working group (PMs from all DISCOs, MAPs, NERC) (FY20.4.01.03)

09/30/19 – 09/30/22 • Work with stakeholders to increase female participation in the quarterly MAP working group.

• Ensure gender sensitivity of standard procedures developed for project managers of MAP program (DISCOs and MAPs).

Outcome 4: Support meter inspection and MAP supervision training for DISCOs (FY20.4.01.04)

09/30/19 – 12/31/19 • Work with stakeholders to increase female participation in the meter inspection and MAP supervision training.

ENVIRONMENTAL COMPLIANCE AND SOCIAL IMPACT

The Power Africa 2 Programmatic Initial Environmental Examination (PIEE) is an overarching programmatic review that identifies likely classes of action to be undertaken and anticipates subsidiary levels of review and approval. The PIEE assesses the types of assistance provided under the Power Africa umbrella – technical advisory, strategy development, transaction advisory, and legal and regulatory reform assistance – and the sectors and sub-sectors for typical Power Africa programs. The PIEE recommends that Power Africa programs receive a broad categorization of “Negative Determination with Conditions” (NDWC).

The PIEE establishes the framework for PA-NPSP environmental and social safeguard compliance requirements. PA-NPSP delivers technical advisory and similar assistance and does not work directly on


infrastructure or directly support development, installation, and construction of power sources and technologies.

In June 2019, after extensive consultation with USAID senior regional environmental leadership and USAID/Nigeria team, PA-NPSP submitted to USAID/Nigeria the final versions of the PA-NPSP Supplemental Initial Environmental Examination (SIEE) and PA-NPSP Environmental Mitigation and Monitoring Plan (EMMP). USAID had introduced the SIEE to PA-NPSP in May 2019 as the appropriate Task Order-level tool to frame the program’s environmental and social impact requirements. The SIEE sets out PA-NPSP proposed activities, describes their potential impacts, presents the various relevant PIEE determinations and conditions, assesses whether they are appropriate/adequate, proposes final determinations/conditions language, and proposes the plan for and nature of subsidiary review and reporting, if any. PA-NPSP’s EMMP was revised to augment the SIEE as an appendix.

During FY20, PA-NPSP will review planned activities and undertake any measures necessary to comply with PIEE requirements as set out in the SIEE. The program will report quarterly on compliance. PA-NPSP also will incorporate any USAID-required climate resiliency planning into activities in consultation with USAID/Nigeria on climate risk management screening requirements.

In addition, PA-NPSP will comply with and report annually on nine additional conditions stipulated in the PATRP IEE, if warranted. These are primarily applicable to the Power Africa PAD Objective 2: Late-Stage Transaction Support and Objective 3: Small Scale Projects and Rural Electrification/Mini-Grids Support.

For new and existing transactions, PA-NPSP will follow a systematic approach to actively identify, manage, and mitigate the potential environmental impact of each transaction. In particular, PA-NPSP will assist counterparts and partners to understand international standards and advocate for strong implementation and enforcement of risk management strategies at national level, including opportunities to influence project pipelines and energy master planning when prioritizing investments. PA-NPSP also will support them to develop improved plans at state and local levels to inform and engage their constituents and take public feedback into account. PA-NPSP also will conduct any necessary additional rescreening for PATRP transactions that have already undergone environmental and social screening.

Where PA-NPSP provides technical assistance that supports development, installation and construction of energy sources and technologies, PA-NPSP will require that project developers and proponents follow the Environmental and Social Impact Assessment regulatory requirements for Nigeria, including the development of associated documents. PA-NPSP will collaborate with counterparts and project developers as the responsible parties for ensuring that leading practices in environmental monitoring and mitigation are followed. PA-NPSP will provide transaction support services, technical assistance, and training as well as assist with establishing relevant monitoring and reporting frequency.

Intervention PMO.04: Adhere to Power Africa environmental principles and requirements, and align interventions with USAID climate resiliency objectives

Table 24: Intervention PMO.04 Activities and Deliverables (Environmental Compliance and Social Impact)


Review and update SIEE and EMMP FY20.PMO.04.01

10/01/19 – 09/30/20

1. Consult with Power Africa on updated requirements, leading practices, and tools

2. Revise SIEE and EMMP, as needed

Review transactions and activities for potential negative impacts, and undertake SIEE and PATRP IEE

10/01/19 – 09/30/20

1. Assist technical teams to identify transactions and activities with potential negative impacts

2. Screen and document results on designated tool



screening/compliance measures FY20.PMO.04.02

Provide counterparts and project developers with technical assistance and training, and support developers to establish relevant monitoring and reporting frequency FY20.PMO.04.03

10/01/19 – 09/30/20

1. Design and deliver training on standards, policy, and practices 2. Advise on monitoring and reporting

Incorporate USAID climate resiliency planning into activities FY20.PMO.04.04

10/01/19 – 09/30/20

1. Consult with USAID/Nigeria on requirements 2. Prepare documentation and tools

Report regularly on environmental and social impact compliance and PATRP IEE conditions FY20.PMO.04.05

10/01/19 – 09/30/20

1. Prepare quarterly status updates 2. Draft annual status update for FY20 annual report, to be submitted in

FY21

Technical Deliverables 09/30/20 A. Environmental Review Forms (ERFs) (as-needed basis) [See Contractual Deliverables: SIEE and EMMP (Revised); also, environmental and social compliance updates included in quarterly progress and annual reports]

RESULTS MANAGEMENT

Monitoring, Evaluation, and Learning

Data-driven, responsive management and effective implementation of PA-NPSP requires flexibility and responsiveness to shifting conditions and emerging opportunities. This in turn requires project leaders to have timely, accurate, information to make effective decisions about where to focus project resources and, when necessary, to change course. In addition to strong management systems and reporting, the monitoring, evaluation and learning function serves as a core management tool. Enabled by technology and ongoing analytics, the PA-NPSP FY20 activities for ME&L will focus on the continued operationalization and strengthening of the end-to-end ME&L process (data collection, analysis, visualization and reporting), with the goal of creating a functional, and comprehensive system that drives performance. In addition, PA-NPSP will review and update the ME&L Plan, including indicators and targets.

ME&L process in FY20 will focus on USAID principle of Collaboration, Learning, and Adapting (CLA), which includes regular feedback loops to keep leadership informed of program performance relative to targets and enable continual collaboration and alignment with Power Africa. Data from the ME&L dashboard will play a role in program management decisions, including determining whether there is a need to reassign resources, redirect efforts or re-evaluate the course of strategic interventions. These decisions will be made transparently, with input from Power Africa and USAID Nigeria and other relevant stakeholders. ME&L key activities centered on the following:

Objectives:

1. Establish an internet-accessible M&E reporting and analysis tool (automation of the ME&L data management process).


2. Enhance the program’s Data Quality Assurance (DQA) process to ensure the effectiveness and usefulness of the performance data results.

3. Respond to contractual activities during periodic submission of data sets (e.g. quarterly progress reports, update/upload to USAID Monitor (PRS), USAID TEAMS (formerly TraiNet), PATT, and Power Africa Information System (PAIS)

4. Organize a learning workshop to explore USAID new policy framework around Journey to Self-Reliance (J2SR) and explore strategies for supporting Mission’s activities in the Northeast region of the country by evaluating PA-NPSP’s metrics and readiness to contribute towards achieving these important USAID Mission goals.

5. Re-orient the ME&L Plan around the concept of USAID Journey to Self-Reliance to incorporate JSSR metrics. The ME&L team will conduct performance tracking, administer pulse surveys to collect qualitative data and guide program implementation towards facilitating increased ability of the FGN, the private sector and civil society to plan, finance and implement solutions to solve its power sector development challenges.

The table below tracks the list of activities and deliverables for Monitoring, Evaluation and Learning as part of the PA-NPSP FY20 activities. Under the COP and the PMO Lead, Results Management will work with the Communications and Outreach and technical teams on key contractual deliverables.

Intervention PMO.05: Focus on USAID CLA principles, which include regular feedback loops to keep leadership informed of program performance relative to targets and enable continual collaboration and alignment with Power Africa.

Table 25: Intervention PMO.05.01 Activities and Deliverables (Results Management: ME&L)


Review and update the ME&L Plan, including indicators and targets FY20.PMO.05.01.01

01/01/20 – 06/30/20

1. Assess changes in program ME&L requirements and practices 2. Analyze indicator targets in comparison to progress to date and planned

work 3. Update ME&L Plan

Finalize the M&E database and reporting tool FY20.PMO.05.01.02

10/01/19 –06/30/20

1. Complete the procurement process of an automated ME&L platform 2. Conduct pilot tests and eventual deployment of the system

Submit progress reports including an M&E data update FY20.PMO.05.01.03

10/01/19 – 09/30/20 (recurring)

1. Analyze periodic performance data and provide summary for progress reporting

2. Develop ME&L narratives for the progress reports (biweekly, quarterly, annually)

3. Compile and develop periodic field reports 4. Forecast and develop ME&L activities for FY21

Conduct data quality assessment (DQA) FY20.PMO.05.01.04

10/01/19 – 09/30/20 (recurring)

1. Review and compare indicators in the ME&L plan against the PIRS 2. Flag discrepancies in the data (e.g. under reporting or over-reporting) 3. Verify that all data reported have accurate source documentation 4. Store data in a restricted location to ensure integrity of the data 5. Prepare for a formal third party DQA via DevTech

Organize an evaluation and learning exercise for the program FY20.PMO.05.01.05

01/15/20 – 07/30/20

1. Update annual learning plan in ME&L Plan. 2. Conduct internal pulse survey and external performance evaluations 3. Disseminate and analyze pulse surveys for key stakeholders 4. Organize data learning workshop and disseminate results through outreach

channels and events 5. Ensure that PA-NPSP interventions support Nigeria’s commitment to

building a capable and robust energy ecosystem.



Undertake continuous comprehensive review and adaptation of the ME&L process to address emerging issues and challenges through good and acceptable practices FY20.PMO.05.01.06

10/01/19 – 09/30/20 (recurring)

1. Review of program performance indicators (as necessary) to ensure indicators align with program activities, mission and power Africa objectives.

2. Re-orient the ME&L process (performance tracking, pulse surveys and other learning exercises) to guide program implementation towards facilitating country’s self-reliance.

3. Refine data collection, analysis & process with a view to improve the quality and capacity of the routine data collection systems

Undertake extensive and continuous collaboration with relevant partner-agencies and program to enhance the standard and timeliness of PA-NPSP’s performance reports and reporting systems. FY20.PMO.05.01.07

10/01/19 – 09/30/20 (recurring)

1. Strengthen collaboration with USAID’s DevTech (MEL activities) 2. Participate actively in the USAID MEL Community of Practice (CoP)

activities 3. Collaborate with PACO and PAOP 4. Establish a working relationship with other sister projects and activities to

enhance the quality of performance tracking and reporting to support informed decision making. Some of these projects and activities include: SAEP, WAEP, EAEP, PAOP, etc.

Create data visualization and dashboards for performance results FY20.PMO.05.01.08

10/01/19 – 09/30/20 (recurring)

1. Develop customized data visualization tools and dashboards (Quarterly, Annually and Pulse Survey)

Technical Deliverables [See list of contractual deliverables in appendix; also, performance data and learning updates included in quarterly progress and annual reports]

Knowledge Management

For FY20, PA-NPSP Team will prioritize the management of program information in a manner that enhances shared learning, promote synergy within the program and among development partners and ensure security and confidentiality through the following key activities:

1. Track and drive contractual deliverables from technical teams to ensure timely and measurable progress towards program contractual targets.

2. Update periodically and per deadline the USAID/Power Africa reporting systems – PATT, PAIS, USAID Monitor, DEC, DDL, TEAMS (formerly TraiNet).

3. Safeguard and manage confidential information including information collection, dissemination, and secured storage of confidential program information and materials.

4. Provide timely and structured program information and reports that facilitates efficient decision making for the program and the mission.

The above focal areas will form the guiding principles for management of the activities listed in the table below. As previously noted, the Communications and Outreach and the Knowledge Management components under PMO will closely collaborate to ensure that program information, knowledge, and learning is captured in reports and other publications, applied to enhance PA-NPSP performance, and shared with other stakeholders.

Table 26: Intervention PMO.05.02 Activities and Deliverables (Results Management: Knowledge Management)


Track and report on status of contractual and technical deliverables FY20.PMO.05.02.01

10/01/19 – 09/30/20 (recurring)

1. Develop a tracking process for program deliverables 2. Routinely track deliverables



Manage upload and archiving of datasets and documents to USAID and Power Africa online reporting systems and repositories FY20.PMO.05.02.02

10/01/19 – 09/30/20 (recurring)

1. Finalize and ready datasets and documents for submission to USAID Development Experience Clearinghouse (DEC), USAID Monitor, USAID Development Data Library (DDL), USAID TEAMS, PATT, and PAIS

2. Verify and validate the data available for submission to relevant systems by directly engaging partners in the collection and verification of performance data. PA-NPSP utilizes the data sheet and Technical Assistance Confirmation Memo to collect and validate these results before reporting.

3. Submit datasets/documents to all systems as and when due

Support dissemination of program lessons and successes across Implementing Partners and stakeholders FY20.PMO.05.02.03

10/01/19 – 09/30/20 (ongoing)

1. Share success stories, research findings, reports, toolkits, and other knowledge

Technical Deliverables [See list of contractual deliverables in appendix]


FINANCE AND OPERATIONS OFFICE


FINANCE AND OPERATIONS OFFICE Under the Finance and Operations Office (FOO) in Abuja and the home office project management team in the U.S., PA-NPSP will continue to implement an efficient program support for operations focused in the field office Abuja and in the home office in FY20. PA-NPSP will also deploy efficient support to an anticipated increase of program activities in Lagos state. PA-NPSP will continue to maintain effective internal financial procedures to ensure timely payments to subcontractors and vendors, to track and report project financials.

OPERATIONS

The FOO will continue to work closely with the PMO team to coordinate and support activities for technical delivery. PA-NPSP will oversee international and domestic travel plans and logistics, events and training logistics. PA-NPSP will continue to lead the local procurements needed to support technical activities. We do not expect significant large procurements will be needed in FY20, unless it is agreed with USAID to procure equipment in support of selected DISCOs. If so, the procurement schedule will be provided to USAID for review and approval.

PROJECT STAFFING

In the coming year, PA-NPSP will deploy a Senior Transaction Advisor to support the on-grid activities. We will also employ a Communications Manager full-time in the PA-NPSP office. Through Deloitte Nigeria and other local subcontractors, PA-NPSP will continue to onboard short-term consultants to support all the program technical activities. See Appendix F: PA-NPSP Organigram and Staffing (FY20) for details on the program’s organizational structure and planned personnel.

Table 27: Intervention FOO.01 Activities and Deliverables (Finance and Operations)

Activity Start –End Dates Deliverable

Coordinate program administration and operations between the Abuja office and DC office FY20.FOO.01.01

Ongoing A. Program administration and operations support

Support program financial management FY20.FOO.01.02

Ongoing A. Program administration and operations support

Quarterly Financial Updates FY20.FOO.01.03

Quarterly [See list of contractual deliverables in appendix]

Onboard new resources and submit required approvals to USAID FY20.FOO.01.04

Ongoing A. Resource CV, Biodata, and SoW submitted to USAID and received USAID concurrence

Develops Travel Authorization Requests and submit for approval FY20.FOO.01.05

Ongoing A. TARs submitted to USAID for approval

Procurement support for personnel and office materials FY20.FOO.01.06

Ongoing A. Procurement documents

Annual staff compliance trainings or verification FY20.FOO.01.07

Annual A. Confirmation from staff of annual compliance updates

Annual staff performance management evaluation FY20.FOO.01.08

Annual A. Performance management documentation


APPENDICES

Photo: PA-NPSP


APPENDICES APPENDIX A: PA-NPSP CONTRACTUAL DELIVERABLES (FY20)

Deliverable Period Due Date A. Branding and Marking Plan (Revised) B. SIEE and EMMP (Revised) C. ME&L Plan (Revised)

To be reviewed and updated annually

06/30/20 06/30/20 06/30/20

D. Annual Work Plans

• Annual Work Plan (FY20)3

• Annual Work Plan (FY21)

01 Oct 19 to 30 Sep 20 01 Oct 20 to 30 Sep 21

09/01/19 09/01/20

E. Quarterly Progress Reports

• Quarterly Progress Report (FY20Q1)



01 Oct 19 to 31 Dec 19 01 Jan 20 to 31 Mar 20 01 Apr 20 to 30 Jun 20

01/15/20 04/15/20 07/15/20

F. Annual Report

• Annual Report (FY18/19)

• Annual Report (FY20)

02 Apr 18 to 30 Sep 19 01 Oct 19 to 30 Sep 20

10/30/19 10/30/204

G. Quarterly Accrual Reports

• Quarterly Accrual Report (FY20Q1)




01 Oct 19 to 31 Dec 19 01 Jan 20 to 31 Mar 20 01 Apr 20 to 30 Jun 20 01 Jul 20 to 30 Sep 20

12/20/19 03/20/20 06/20/20 09/20/20

H. Quarterly Financial Reports

• Quarterly Financial Report (FY20Q1)




01 Oct 19 to 31 Dec 19 01 Jan 20 to 31 Mar 20 01 Apr 20 to 30 Jun 20 01 Jul 20 to 30 Sep 20

01/15/20 04/15/20 07/15/20 10/15/205

I. Power Africa Field Updates

• Power Africa Field Update (FY20Q1)




Power Africa to confirm: 01 Oct 19 to 31 Dec 19 01 Jan 20 to 31 Mar 20 01 Apr 20 to 30 Jun 20 01 Jul 20 to 30 Sep 20

Power Africa determines

J. Power Africa Deal Watch Lists

• Power Africa Deal Watch List (FY20Q1)




Power Africa to confirm: 01 Oct 19 to 31 Dec 19 01 Jan 20 to 31 Mar 20 01 Apr 20 to 30 Jun 20 01 Jul 20 to 30 Sep 20

Power Africa determines

K. Biweekly Update L. Event Calendar

Biweekly Rolling

Biweekly Monthly

M. USAID/Nigeria Deal Team Tracker Upon request Periodic

3 This is a FY18/19 deliverable pending approval in FY20. 4 This is an FY21 deliverable covering FY20 performance period. 5 This is an FY21 deliverable covering FY20 performance period.


Deliverable Period Due Date N. USAID/Nigeria briefing memos, U.S. Embassy/Nigeria background

checklists, presentations, responses to requests for information Ad hoc Ad hoc

O. Internet-accessible M&E reporting and analysis software P. USAID Portfolio Review, Performance Plan, and Report (FY19)

input Q. USAID Operational Plan (FY20/21) data R. Power Africa Portfolio Review – Budget and Performance input

Life of program 01 Oct 18 to 30 Sep 19 01 Oct 19 to 30 Sep 21 01 Oct 19 to 30 Sep 20

06/30/20 12/01/19 03/01/20

S. Online Reporting Systems and Data Repositories

• USAID Development Experience Clearinghouse (DEC)

• USAID TEAMS

• USAID Monitor

• Power Africa Transaction Tracker (PATT)

• Power Africa Information System (PAIS)

• USAID Development Data Library (DDL)

Per deliverable Quarterly Quarterly Quarterly Quarterly Annually

Approval +30 Qtr end +30 Qtr end +30 Qtr end +30 Qtr end +30 FY20 end +30


APPENDIX B: PA-NPSP ACTIVITY GANTT CHARTS (FY20)

Outcome 1 | Energy Resources: Gas Supply and On-Grid Generation Activities


Outcome 2 | Off-Grid Activities


Outcome 3 | Enabling Environment Activities


Outcome 4 | Distribution Activities