Kabul Electric Service Improvement Program

Tetra Tech ES Inc., through a USAID funded initiative (KESIP), is assisting Afghanistan’s recently incorporated electric utility with improvements in its administrative, commercial, and financial operations. As a subcontractor to Tetra Tech, MHI is providing specified advisory services to the electric utility’s HQ (DABS) and the Kabul Electricity Directorate (KED -the distribution and commercial business unit responsible for distribution and commercial functions for the capital city of Afghanistan). KESIP commenced in November 2009 with an initial two-year time frame.

MHI’s primary responsibilities are, within the Commercial business units (HQ and KED), to establish and support implementation of effective institutional management practices and improved business processes that will improve energy billings and collections, reduce commercial losses and improve customer service. Additional MHI responsibilities are in the areas of Information Technology, Distribution O&M, and Training. To enable execution of MHI’s contractually-specified deliverables, MHI has four long term staff assigned to the Commercially-focused tasks, and three additional short term staff assigned to the IT, Distribution O&M and Training tasks. Several specific tasks are involved in the successful completion of the assigned deliverables.

The first task involves Advisory Services to the corporate Chief Commercial Officer and the General Manager of KED regarding a revenue improvement implementation plan. Subtasks include the establishment and implementation of loss reductions, collection, and commercial management systems and processes; development and implementation of loss reduction-focused performance target agreement between DABS and KED; development of Commercial managerial capacity within KED; and development of an internal management information system for KED. Senior commercial Management capacity building is featured.

Secondly, MHI will focus on the Commercial and Revenue management Task. Subtasks include KED customer enumeration, in which all consumers will be identified and registered within a commercial billing system using GPS technology. Revenue management involves the development of a metering program and associated work processes and practices. Meter Reading process improvements and enhancements to the billing schedule will be addressed. Revenue Protection will focus on issues related to non-technical losses. Leading implementation of a new CIS and AMR in KED will be within this Task, as a pilot for all other commercial business units in Afghanistan. Capacity building is featured for all commercial operational departments in KED.

MHI will also have direct responsibility to participate in the Task for the planning, design, procurement, and implementation of new enterprise information systems, specifically industry-standard ERP, CIS and AMR systems. This includes hardware, networks, software and staff training. This responsibility also includes technical assistance in support of the development of business requirements related to customer billing, finance, human resources and asset management. This Task also includes responsibility for the development of an enterprise-wide IT Strategic Plan.

MHI will assist in the planning, design, procurement and institutional utilization of tools, equipment and vehicles. Furthermore, MHI is responsible for the Distribution O&M Task which will develop a detailed operations and maintenance plan to efficiently and safely operate and maintain the existing distribution networks, and provide functional specifications for a CMMS.

Finally, MHI will complete a human resources and training needs analysis. This will include an assessment of individual and institutional human resource capacity and the development and analysis of a training plan that addresses the technical and administrative needs of the utility.