Sector Reform and Utility Commercialization (SRUC) Project Quarterly Performance Report – Q2 FY2021

The report is submitted by Deloitte Consulting LLP, the prime contractor, to the United States Agency for International Development (USAID). The SRUC Project aims to promote utility commercialization and equitable, effective reforms that enhance the financial viability and long-term sustainability of developing countries' electricity systems. The project's core activities include technical and management functions, such as evaluations, sector reform workshops, designing new market structures, developing legal and regulatory frameworks, and providing training and technical assistance. In Q2 FY2021, the SRUC Team continued to face challenges due to international travel restrictions and stay-at-home orders in response to the COVID-19 pandemic. Despite these challenges, the team worked closely with USAID and in-country counterparts to adjust work plans and implementation schedules. The SRUC period of performance was extended from June 2021 to September 2021 to address ongoing challenges and new delays in technical delivery. In Papua New Guinea, the SRUC Team continued to support PNG Power Limited (PPL) under Components 1 and 4. Under Component 1, the team provided technical assistance to PPL for its Large Power User (LPU) customer survey and database cleansing activity. However, several challenges impacted the execution of this activity, including COVID-19 on-site restrictions, changes in PPL management and personnel, and issues with PPL's commitment to rectifying issues surfaced by the survey data collection. To enhance Component 1 support, the SRUC Team worked with PPL and USAID to define three new deliverables: a Lessons Learned Report, a Frequently Asked Questions Report, and Ad Hoc Technical Support. These deliverables have been the focus of the SRUC Team's work over the last quarter. Despite these additional technical assistance activities, PPL has been unable to undertake the survey and associated data cleansing in a comprehensive manner. Under Component 4, the SRUC Team delivered the Large Customer Engagement Survey (LCES) Report and carried out virtual training sessions. Additional supportive activities will be conducted in the next quarter to assist PPL in drafting communications materials to improve engagement with large customers and implement recommendations from the LCES Report. In Saint Lucia, the SRUC Team submitted the draft grid code to the National Utilities Regulatory Commission (NURC) and held a closing session with counterparts to resolve final questions and determine next steps. The team is finalizing the close-out report and accompanying communications materials. In Barbados, the SRUC Team completed and delivered the FTC Energy Policy Outreach Roadmap (EPOR) to support the national regulatory agency, the Federal Trade Commission (FTC). The team also carried out a two-day workshop to review the four-phase methodology used to create the EPOR. Due to travel restrictions, remaining Work Assignment funding will be reallocated to supplemental programming, and the SRUC Team will conduct follow-on work to build upon the EPOR. The SRUC Team also worked with the Contracting Officer's Representative (COR) and Work Assignment Activity Managers to finalize and update the USAID Smart Utilities web site. A draft wireframe was submitted as a template for other Work Assignment close-out summaries to follow. The SRUC Team's work in Q2 FY2021 focused on supporting PNG Power Limited (PPL) under Components 1 and 4, submitting the draft grid code to the National Utilities Regulatory Commission (NURC) in Saint Lucia, and completing and delivering the FTC Energy Policy Outreach Roadmap (EPOR) in Barbados. The team also worked on finalizing the close-out report and accompanying communications materials in Saint Lucia and updating the USAID Smart Utilities web site. The SRUC Project's quarterly performance report for Q2 FY2021 highlights the team's efforts to address challenges and delays caused by the COVID-19 pandemic. Despite these challenges, the team continued to work closely with USAID and in-country counterparts to adjust work plans and implementation schedules. The project's core activities and goals remain focused on promoting utility commercialization and equitable, effective reforms that enhance the financial viability and long-term sustainability of developing countries' electricity systems.