Portfolio - Resource Management Associates (Pvt) Limited

Electricity Utility Planning National Energy Policy & Planning Renewable Energy DevelopmentAccess Improvement Project, Tanzania

RMA’s senior consultants worked as a part of the international team to assist the Tanzania Ministry of Energy and Minerals (MEM) and the Energy and Water Utilities Regulatory Commission (EWURA) to develop and establish the pricing policy for grid connected and mini-grid based small power plants that use renewable energy, and to develop the technical guidelines for grid connection of embedded generators. Conducted several seminars and workshops in Tanzania for developers, utility engineers, ministry officials and regulatory staff, to discuss optional tariff setting mechanisms, and to present the proposed tariffs and technical guidelines. The policies, pricing methodology and technical guidelines developed by the RMA consultants have since been implemented in Tanzania.

OtherLighting Sri Lanka – Hambantota

In this project to serve 100% of the Hambantota district of Sri Lanka, RMA was selected by Ceylon Electricity Board to advise its staff on the flagship project of CEB on cost-optimal designs of medium and low voltage lines, application of coordinate-based systems to improve the conducting of surveys and data collection for areas yet to be electrified, to review and update the economic evaluation model used by CEB to rank the electrification projects in each village, to conduct a comprehensive baseline survey of a sample of 2000 households in the district, analyze the present status of reliability of the medium and low voltage networks, and to review designs of MV line routes and gantry designs.

OtherSri Lanka Power Sector Environmental Impacts Study

The study, conducted in association with ECA of UK, includes analysis of energy demand and forecast future energy demand, conducting systems planning, analysis of coal linkages, analysis of financial implications of policy options, environmental impacts of power plant siting, environmental regulations and standards, definition of policy options and conducting scenario analysis, and conduct multi-attribute trade-off analysis.

Electricity Utility Planning National Energy Policy & PlanningEx-post Evaluation of JICA funded projects

In association with ICNet of Tokyo Japan, RMA conducted ex-post evaluation of three JICA-funded projects completed in Sri Lanka over the past five years.

(a) Power sector reform project
(b) Medium voltage distribution project
(c) Transmission and substations development project.

The work was conducted in accordance with the JICA rules laid out for such ex-post evaluation of projects. RMA conducted analysis of completed projects, examining their present status of operation and problems in operation and maintenance. RMA also developed the financial and economic models for (b) and (c) to assess the impacts of the investments on the economy and CEB.

Energy Efficiency & Demand Management National Energy Policy & PlanningSri Lanka Energy Efficiency Improvement Fund

JICA assigned the development of the funding mechanism for a new Energy Efficiency Improvement Fund to assist the implementation of energy efficiency projects in (i) private industrial and commercial institutions (ii) government buildings, and (iii) appliances used in large scale by all electricity customers. RMA organised an interdisciplinary team of four specialists with hands-on, in-country experience in energy economics, engineering, banking and finance, and in government treasury operations, to develop the structure, eligibility criteria and the operating mechanism for this new credit line. A comprehensive financing plan was prepared for each focus area of the implementation.

OtherEnvironmental Safeguards Analyses and Documentation

RMA was contracted by CEB to prepare the initial environmental examination documents for the upcoming National Grid Expansion Project to be financed by the Asian Development Bank. The project is for the upgrade of five grid substations to absorb small hydroelectric power generation, presently being rapidly developed by the private investors under the small power purchase scheme. While the small power development projects are being supported by the World Bank’s RERED project, the ADB has come-up with finances to strengthen the grid to absorb power from such renewable sources. The transmission project also includes upgrading of eight other grid substations, four new grid substations and five new transmission lines.

RMA prepared the IEE and the resettlement plan for CEB, which was then reviewed by ADB and accepted as compliant to ADB guidelines. The transmission project is presently being implemented.

Due Diligence on Energy Sector Projects Power Generation and EconomicsConsultancy Services to Lenders to 20 MW Diesel Power Plant in Jaffna Peninsula

The distribution network in Sri Lanka’s Jaffna peninsula was separated from the main grid between 1995-2013. Two Independent Power Producers (IPPs) were procured to provide the supply to the isolated network, until the civil conflict ended in 2009, enabling re-connection to the main grid. RMA was contracted by the lenders to the one of the two IPPs (20 MW) to provide a comprehensive engineering and financial/economic due diligence on these diesel power plants. The services provided included analysis of the status of diesel generators, review of investor proposals for new investments to replace ageing and inefficient generating units, assessment of efficiency, monitoring of maintenance and fuel supply mechanism, etc.

OtherPublic Expenditure Review

RMA was assigned to conduct the power sector analysis of the Public Expenditure Review (PER), covering the following two areas in the electricity sector of Sri Lanka.

(a) Subsidy beneficiary incidence analysis
(b) Benchmarking the efficiency of Ceylon Electricity Board (CEB), the national electricity utility

The study examined the flow of subsidies into the electricity sector from the rest of the economy by way of direct grants, investment tax concessions, concessionary loans, rescheduled loans, debt moratorium and fuel tax concessions. The study then examined the flow of such direct and indirect subsidies to the customers, particularly those who are the most disadvantaged, by way of limited access to electricity. In conducting this study, the economic and financial costs of electricity was calculated using marginal costing and revenue requirement methods, and the subsidies as well as cross-subsidies to each class of customer were estimated for year 2005. The calculation of marginal costs were done using CEB’s generation planning models, and the outputs of transmission and distribution planning models.

Another component of the study was the benchmarking of the performance of Ceylon Electricity Board. CEB has long been a successful state-owned utility, but since 1999, owing to its inability to implement cheaper generation projects, and the electricity prices not keeping pace with the increasing costs, CEB has been reporting losses. The study benchmarked the technical and financial performance of CEB against a more successful utility in the Asian region to learn the strengths and weaknesses of the approach of managing CEB, and set guidelines for its future operations.

Electricity Utility Planning National Energy Policy & PlanningPPTA: Formulation of the Network Expansion and Rural Electrification Project for Sri Lanka

RMA was selected by ADB to work in association with Hydro Tasmania of Australia, to formulate the bank’s next investment project in Sri Lanka. The project was to strengthen the power sub-transmission network by establishing five grid substation, building new 33 kV lines and providing electricity services to a further 400 villages. The value of the project was targeted at USD 70 million.

The role of RMA was to conduct analysis of the performance of the existing MV network throughout the country, and identify weak areas by way of poor voltage regulation and reliability. RMA conducted extensive customer and network surveys, measurements and modelling, to identify the problems in the network and provide an initial overview to the ADB about the performance of projects previously funded by the bank. Thereafter, RMA liaised with the utility to critically review the technical performance of the MV network, conduct simulations and develop a long-list of projects. Through a screening process, the projects were prioritised and short-listed to be included in the project. The performance of the each grid substation and MV line proposed was modeled and its performance was verified.

Due Diligence on Energy Sector Projects Power Generation and EconomicsDue Diligence Study on ACE Power Embilipitiya 100 MW Diesel Power Plant

The Embilipitiya Power Plant is a USD 60 million investment, with ACE Power (Pvt) Ltd of Sri Lanka and Caterpillar Power Generation Systems (CPGS) of USA holding equal shares. CPGS required to divest a portion of their equity, and DEG of Germany the investment arm of kfW required a due diligence study to be conducted about the technical and financial status of the power plant project.

Thus RMA was appointed as the consultant to Deutsche Investitions- und Entwicklungsgesellschaft mbH – Infrastructure Department – of Germany, to conduct a due diligence study on ACE Power Embilipitiya 100 MW power plant in Sri Lanka.

The study included the evaluation of the investment and its current market value, efficiency and status of maintenance, and a review of the power purchase agreement/dispatch prospects of the power plant. Based on the RMA recommendation, the project has now been divested.

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