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PROJECTS

PREPARING A POWER SECTOR FINANCIAL RECOVERY PLAN/ADB

Project Period
02/2017 – 03/2019

Origin of Funding
Asian Development Bank

Name of Client/ Beneficiary:
Ministry of Finance

Description of Project
The Policy and Advisory Technical Assistance (PATA) aims to assist the government developing a financial recovery plan and to establish a cost recovery tariff and optimize tariff structure, which will help Government in meeting the financial needs for independently and efficiently running the power sector utilities.

The outputs to be completed under the PATA include (i) determining the real costs in power generation, transmission, and distribution; (ii) developing full cost recovery pricing methodologies and policies, and designing new tariff structure for power generation (including options for carbon pricing for thermal generation), transmission, and distribution, with differentiating tariffs for different customers and different generation sources (hydro, solar, water, gas) in existence including those planned for development, to replace the current, single tariff for all customers and thereby allow cross-subsidization between customer classes; (iii) developing a financial recovery plan including a road map for gradual increase in tariff to achieve a full cost recovery level by 2022; and (iv) public information campaign on tariff reform, case studies of good practices in other countries, and institutional strengthening.

Scope of Services provided:

Name of Partners
Corporate Solutions, UK