Sector Reform and Utility Commercialization (SRUC) Task Order: Willingness to Pay Study– Côte d’Ivoire

The United States Agency for International Development (USAID) developed the task order to enhance the financial viability and long-term sustainability of developing countries' electricity systems. The majority of the work under this contract is being undertaken directly with power utility companies in developing countries to promote long-term commercialization, private sector participation, and market-based approaches to financial and operational sustainability. The SRUC Task Order has a specific focus on Côte d'Ivoire, where the Government of Côte d'Ivoire (GoCI) has implemented the Program of Electricity for All (PEPT) to connect one million homes in five years. The program has connected 228,000 households under a framework similar to the PEPT program, providing important insights into the behavior of new urban customers and their ability to pay for new connections and electricity services. However, the GoCI's analysis for the PEPT structure has not sufficiently investigated the purchasing power of the targeted consumer groups, their average monthly electricity consumption, and their ability to pay for new electricity services. The main objectives of the Willingness to Pay Project include utilizing a local survey institute to conduct a survey that assesses baseline demographic data, determines willingness and ability to pay for electricity connection and ongoing electricity services, and uncovers public perception about the quality of power supply. The project also aims to analyze the results of the survey to produce general takeaways for the GoCI on the proportion of customer incomes that go to electricity costs, the socio-economic impact of electricity expenses on customers, and the current and projected consumption patterns by geographic zone and type of clients. The SRUC Team will design, implement, and analyze a Willingness to Pay (WTP) Study in Côte d'Ivoire and present its results and conclusions to the Government of Côte d'Ivoire. The study will involve conducting initial meetings with stakeholders, procuring a local and qualified survey institute, defining the specific goals and outcomes for the survey, and performing a review of available literature on similar willingness to pay studies. The survey will aim to obtain data about the energy expenses of Ivoirian households and businesses and the share of income represented by the payment of current electricity consumption. The SRUC Team has estimated a budget of $xx to pay for the services of the local survey institute, which should allow for a survey with a representative sample of at least 3,000 respondents. The respondents will be from different tariff customer classes, excluding industrial, and will primarily be residential households but will include some small commercial enterprises. The budget is predicated on this estimation, and any changes in the scope or number of participants will be discussed with USAID and agreed upon. The study will also involve producing a draft and final survey instrument with tailored questions on demographic, consumption, opinion, and budget data, and based on previous Willingness to Pay survey instruments. The survey will aim to obtain data about the energy expenses of Ivoirian households and businesses and the share of income represented by the payment of current electricity consumption. The SRUC Team will define a suite of data and information that will be collected and analyzed as part of the survey, including data about the energy expenses of Ivoirian households and businesses and the share of income represented by the payment of current electricity consumption. The study will also involve scheduling and planning execution with the survey institute, finalizing the sample size and target outputs, and running an initial focus group survey pilot to pre-test the survey instrument/questionnaire. The SRUC Team will provide a brief workplan to USAID, detailing the proposed approach to completing the objectives defined under the SOW and estimated timelines for each deliverable.