Sixth Quarterly Progress Report: January-March 2012

The Program's sixth quarter, covering January 1 to March 21, 2012, saw the arrival of new Program Chief of Party, Craig VanDevelde, who brings over 20 years of international experience in energy sector reform and program management. Former Chief of Party, Dick Dumford, continues to support the Program as the new Engineering Team Leader and Senior Technical Advisor. The Program's scope has expanded with the signing of Contract Modification 7 on March 30, 2012, which extends the Program's duration by 18 months and adds a new component focused on preparing DISCOs for privatization. This component aims to engage one or two large and relatively well-performing DISCOs in a performance improvement program as a precursor to government divestiture. The Program will also work on energy conservation and demand-side management, cost-reflective tariffs, power factor improvement, and feeder optimization for loss reduction. In parallel with planning activities for the new component, the Program continued delivery of Component 2 work this quarter. The Program held a media event at the Serena Hotel, Islamabad to sign collaboration arrangements with nine DISCOs, which received coverage in approximately 30 newspapers and 10 TV channels. The Program also sponsored a one-week visit to the United States by 20 senior HR managers from DISCOs, resulting in 31 stories in both print and electronic media and on multiple TV channels. Program advisors working at the Ministry of Water and Power continue to provide invaluable support towards improving the environment in which DISCOs operate. With Program support, the Ministry defeated a case filed in Sukkur to stop the dissolution of Pakistan Electric Power Company (PEPCO), paving the way for DISCO autonomy. The Program expanded rollout of demonstration activities this quarter in various DISCOs, including improving existing commercial procedures, preparing clean consumer lists, and establishing model Integrated Commercial Offices. Eleven general consumer batches were issued using blind meter readings, and a consumer census was completed for the high-loss Allama Iqbal Town sub-division of the Lahore Electric Supply Company (LESCO). The census identified discrepancies, resulting in more accurate billing for customers. The Program also continued to support the Ministry of Water and Power in its efforts to improve the commercial performance of DISCOs. The Program's efforts have resulted in significant progress, including the expansion of demonstration activities, the signing of collaboration arrangements with nine DISCOs, and the defeat of a case filed to stop the dissolution of PEPCO. The Program's new component focused on preparing DISCOs for privatization is expected to further improve the commercial performance of DISCOs and pave the way for their autonomy.