Power Sector Reforms Reduce the high cost of electricity Work with World Bank (under Trust Introduction of competitive Mixed. by introducing sector regulation and Fund) to advocate and establish the tendering (new in the power sector). Approx. $5.5m Competitive tender in Luganville a competitive tender process for utility regulator. Introduction of a regulator intended resulted in a new concession holder Luganville electricity concession 6 years so far Provided TA and funding for to monitor prices and dilute the and new market entrant. Prices (increase diversity of service establishment and development of price impact of monopoly have been reduced by 4.7% across providers). new department of energy to take concessions. the board following tariff reviews lead on policy development (similar and 49% reduction for low-income consumers. New department of to situation in telecoms). energy created (first time a Undertook scoping mission on dedicated policy area for energy in Luganville concession and government) but staffing of new Sarakata fund which led to tender department not forthcoming. of Luganville concession. Provided grant for TA to support GoV in the AusAID support (funding and tender of Luganville concession. policy/advocacy) has seen greater Provide advice to GoV on outcome engagement of World Bank in a of tender and support GoV officials sector which has improved diversity on the outcome of the tender. of advice and access to technical support. Reforms remain the subject of ongoing legal challenges. Ministry policy position somewhat uncertain.
Power Sector Reforms Approx. $5.5m 6 years so far Reduce the high cost of electricity by introducing sector regulation and a competitive tender process for Luganville electricity concession (increase diversity of service providers). Work with World Bank (under Trust Fund) to advocate and establish the utility regulator. Provided TA and funding for establishment and development of new department of energy to take lead on policy development (similar to situation in telecoms). Undertook scoping mission on Luganville concession and Sarakata fund which led to tender of Luganville concession. Provided grant for TA to support GoV in the tender of Luganville concession. Provide advice to GoV on outcome of tender and support GoV officials on the outcome of the tender. Introduction of competitive tendering (new in the power sector). Introduction of a regulator intended to monitor prices and dilute the price impact of monopoly concessions. Mixed. Competitive tender in Luganville resulted in a new concession holder and new market entrant. Prices have been reduced by 4.7% across the board following tariff reviews and 49% reduction for low-income consumers. New department of energy created (first time a dedicated policy area for energy in government) but staffing of new department not forthcoming. AusAID support (funding and policy/advocacy) has seen greater engagement of World Bank in a sector which has improved diversity of advice and access to technical support. Reforms remain the subject of ongoing legal challenges. Ministry policy position somewhat uncertain.
governance-for-growth-phase-2-program-design-document.docx