Sector Reform and Utility Commercialization Project: Scope of Work to Support Electricidade de Moçambique EP's Loss Reduction Efforts

The project's primary objective is to enhance the financial viability and long-term sustainability of these systems, enabling their expansion and growth, and establishing the required preconditions for clean energy investments. Electricidade de Moçambique, the Mozambique government-owned power utility, is seeking technical assistance to support its ongoing efforts to reduce commercial losses. Despite progress made in loss reduction over the past five years, including community and customer communications, modernization of metering and customer service systems, and community engagement, total losses remain above EdM's targets. The utility aims to achieve a marked improvement in year-on-year loss reduction gains to hit its 16% target by 2019. The commercial metering strategy is a key component of EdM's transformation process, which will result in a more modern and better-performing utility. Commercial efficiency in both collections and rates is a cornerstone of the new CEO's strategy. EdM is strengthening its Commercial Department to help reduce losses, increasing staff from 24 to 47. The scope of work for the project includes identifying specific, discrete projects that can be implemented in the short-term to increase revenue and/or reduce commercial losses. The project will involve information gathering meetings with development partners and EdM, breakdown initiatives into projects and prioritize them, and design an EdM action plan and produce prospectuses. The project will be managed by the SRUC COP, who has experience in loss reduction and regularization, and has worked on several other SRUC task orders. The Project Manager/Energy Specialist will act as the Project Manager, determining adherence to the work plan, and contributing technically to the development and review of deliverables. The QA/QC Manager will oversee technical quality and completion of all deliverables. The project's objectives are to identify and rank a universe of discrete projects based on potential for losses reduction and/or revenue enhancement, produce an execution plan and budget for selected projects, and produce a project prospectus for use when engaging development partners. The project will also involve convening relevant donors working in the Mozambique energy sector to determine where each might best assist. The project's deliverables will include a map of development partners' interests against initiatives, a pre-implementation gap analysis for selected initiatives, a prioritized list of at least 4 to 6 projects, a project execution plan, and prospectuses providing a high-level view of the value levers for cost reduction or revenue increase for prioritized projects. The project team has backgrounds in the development of commercial metering strategies for utilities and/or in utility performance improvement project management and implementation.