Contract for Consultancy and Advisory Services – “Closing the Financial Gap in the Distribution of Electricity” – Phase I and Phase II

The project responded to the two main needs in the electricity sector; distribution and customer services. The project focused on the solutions for Collection, Management and Metering (CMM) services; and re-engineering of the distribution services at EDL. During Phase I, the project focused on the re-engineering of the distribution services to propose a structure based on the Asset Owner/Asset Operator Business Model. The goals were to identify a structure that will allow for proper valuation of the enterprises, and will offer the potential for a fair rate of return. Moreover, the project addressed a technical/management alternative that will provide a significant element of the solution to EDL’s revenue shortfall. This project defined a fast track implementation strategy to create a self-financed enterprise metering system with a service contract agreement for billing and collection services for a number of years into the future. During Phase II, the project aimed at assisting EDL through the development of the Bidding Process for assigning a number of service providers for the management and operation of its Distribution network and in implementing a turnkey solution for a system capable of significantly decreasing technical and non- technical energy losses. The entire Lebanese distribution network is divided into two service regions, each to be awarded to a Service Provider. Moreover, the project implemented a turnkey solution for a system capable of providing a financial balance to the consumed energy and the revenue collected by the Utility through implementing an advanced and automated metering system.

Name of Contract:

Contract for Consultancy and Advisory Services – “Closing the Financial Gap in the Distribution of Electricity” – Phase I and Phase II

Country:

Lebanon

Name of Employer:

Ministry of Energy and Water (MEW) and Lebanese Electricity Company (EDL)

Main Contractor:

CRA International

Date of award/completion:

Phase I: December 2005- April 2006 Phase II: October 2006- June 2010