Baseline Report: USAID Sector Reform and Utility Commercialization

EDM, Mozambique's vertically integrated state-owned power utility company, provides power to over 1.7 million customers across 800,000 square kilometers. The company faces significant hurdles, including historically high levels of electricity losses, which inhibit its ability to improve service quality, extend its distribution network, and expand its power generation capacity. EDM has undertaken a large-scale transformation to make the company more financially viable, operationally sustainable, and commercially oriented. In support of this effort, the US Agency for International Development (USAID) Sector Reform and Utility Commercialization (SRUC) Task Order and its implementing partner, Deloitte Consulting LLP, have sponsored projects to help EDM improve operational processes, mitigate electricity losses, and improve customer service. The company's vision is to transform EDM into an intelligent and sustainable utility that provides every Mozambican with access to quality electricity and exercises leadership in the regional market. EDM's transformation effort has three strategic objectives for 2030: achieving universal electricity access for all Mozambicans, transforming Mozambique into an attractive regional power generation market and hub, and achieving gender equality in the workplace. To fulfill these objectives, EDM has developed a national electrification program, an electrification master plan, and parallel initiatives to reduce losses, vandalism, energy theft, and accidents involving the public. The CES is designed to support these efforts by improving EDM's operational and commercial performance through strategic partnerships with community leaders and other stakeholders. The CES Roadmap, developed in collaboration with EDM and the SRUC Team, outlines the key components and timelines for implementing the community engagement strategy. The Roadmap includes minimum requirements for rolling out community engagement, regional rollout pilots, community engagement governance structure and stakeholders, start-up process overview, and supporting activities for community engagement. The implementation timeline for the Central Coordination Unit and Regional Delegation Teams is also outlined in the Roadmap. The SRUC Team helped EDM define the CES and a Roadmap for its implementation, which is the subject of this report. To define and structure this Roadmap, the SRUC Team undertook working sessions, consultations, and discussions with EDM's central office, operational units, and regional delegation leadership. The Roadmap is designed to support EDM's transformation effort and improve its operational and commercial performance through strategic partnerships with community leaders and other stakeholders. The Community Engagement Organizational and Reporting Structure, as outlined in Figure 1, shows the key stakeholders and their roles and responsibilities. The Steering Committee, composed of EDM's senior management and SRUC Team members, will oversee the implementation of the CES and provide strategic guidance. The Central Coordination Unit will be responsible for coordinating the implementation of the CES across EDM's operational units and regional delegation teams. The Regional Delegation Teams will be responsible for implementing the CES in their respective regions. The implementation of the CES will involve a range of activities, including training for EDM employees and community leaders, communication with communities and stakeholders, and performance monitoring. The SRUC Team will provide technical assistance and support to EDM throughout the implementation process. The CES Roadmap is a critical component of EDM's transformation effort and will help the company achieve its strategic objectives for 2030.