Inception Report: Gap Assessment and Implementation Plan for the Establishment of an Electrification Management Unit (EMU) for EDM

The EMU is a critical component in EDM's efforts to improve the management of electrification projects and enhance the overall efficiency of the power system in Mozambique. The national electrification challenge in Mozambique is significant, with a large portion of the population lacking access to electricity. The government's "Energia para Todos" program aims to increase electrification rates, but EDM faces several constraints in executing this program, including inadequate planning and organizational capabilities. The current power system situation in Mozambique is characterized by a high demand for electricity, with a significant gap between supply and demand. EDM's current planning and organizational capabilities are limited, with a lack of effective management and operational systems in place. The company's connection targets for 2019 are ambitious, but the lack of a clear plan and adequate resources may hinder progress. The World Bank's "Proenergia" assistance program has provided some support, but EDM still requires significant capacity building to effectively manage its electrification projects. A diagnostic assessment was conducted to identify gaps in EDM's management and operational capabilities. The assessment revealed several areas of concern, including engineering and planning, procurement and logistics, operations management, and financial management and reporting. A summary of the gaps, their level of importance, and the timeframe for their resolution was provided. The recommended design for an effective EMU involves establishing a new organizational model with clear mission and governance structures. The proposed EMU solution includes a management, reporting, and operational systems design that will enable EDM to effectively manage its electrification projects. Critical internal engagement and decisions are necessary to enable the EMU setup, and the SAEP project has outlined next steps to support EDM in this process. The establishment of an EMU is crucial for EDM's success in implementing the "Energia para Todos" program and improving the overall efficiency of the power system in Mozambique. The EMU will enable EDM to better manage its electrification projects, improve planning and organizational capabilities, and enhance the overall quality of service to customers.