USAID / PROJET DE REFORME DU SECTEUR DE L'ELECTRICITE Annual Report # 2

14/011. The Law introduces a new institutional and regulatory framework for the power sector, including establishment of a power sector regulatory authority (ARE) and a rural electrification agency (ANSER). The project has a three-year period of performance, from May 16, 2016, to May 15, 2019. The PSR Project was divided into four components: Component 1, which involved revising the power sector strategy and preparing a new policy, along with revising and implementing decrees for creation of the regulatory authority (ARE) and the rural electrification agency (ANSER); Component 2, which involved establishing, staffing, and supporting ARE; Component 3, which involved establishing, staffing, and supporting ANSER; and Component 4, which provided transaction support to the Government of DRC (GDRC) on generation, transmission, and distribution concessions, as well as the sustainable development of generation, transmission, and distribution projects, including large hydropower projects. During the period of 2016-2017, the PSR activity delivered to the GDRC all the statutory elements required to operationalize the two new power sector institutions (ARE and ANSER), as well as a significant number of legal documents necessary to render functional the new legal and regulatory framework established by Law 14/011. However, due to lack of follow-up action on behalf of the GDRC, the PSR activity shifted its focus to the provision of support to specific power projects with the goal of increasing available generation capacity and the number of new customer connections. Thus, implementation of Component 4 became the predominant activity for the PSR Project from January 1, 2018. The PSR Project supports the DRC power sector and deals with different stakeholders in the DRC power sector, ranging from governmental institutions to individual private operators. During the second year, the PSR Project actively cooperated more intensively with the private sector. The major Government counterpart was the Minister of Energy and Hydraulic Resources. The project's workflow is split into distinct components, and the PSR Project provides assistance to relevant institutions and personnel. The project's objective is to improve power sector operations and create the enabling environment to increase access to electricity through domestic and foreign investment. To meet this objective, the project primarily supports the implementation of the national Law on Electricity No. 14/011, which provides a blueprint for the reform of the DRC power sector, as well as provides technical and financial assistance to individually selected power projects in the DRC provinces. The PSR Project has made significant progress in the second year, with a focus on implementation of Component 4. The project has provided support to specific power projects, with the goal of increasing available generation capacity and the number of new customer connections. The project has also cooperated more intensively with the private sector, with the major Government counterpart being the Minister of Energy and Hydraulic Resources. The project's cross-cutting activities have included cooperation with the private sector, with a focus on implementation of Component 4. The project has also provided support to specific power projects, with the goal of increasing available generation capacity and the number of new customer connections. The project has also cooperated more intensively with the private sector, with the major Government counterpart being the Minister of Energy and Hydraulic Resources. The project's implementation challenges have included lack of follow-up action on behalf of the GDRC, which led to a shift in focus to the provision of support to specific power projects. The project has also faced challenges in cooperating with the private sector, with a focus on implementation of Component 4. However, the project has made significant progress in the second year, with a focus on implementation of Component 4. The project's financial and level of effort report indicates that the project has made significant progress in the second year, with a focus on implementation of Component 4. The project has provided support to specific power projects, with the goal of increasing available generation capacity and the number of new customer connections. The project has also cooperated more intensively