Signature Project - Project Management
Malawi – Power Sector Feasibility Study, Investment Program, Due Diligence, & Independent Oversight of Compact Implementation
Background. Malawi is a landlocked country approximately the size of Pennsylvania located in the southeast of Africa. It is a country that is severely constrained in pursuing its economic growth and poverty agenda because of a dilapidated power system and a lack of energy. The access of energy to the rural sector is less than 8 percent and routine power cuts and load shedding are a common occurrence causing widespread disruption.
The Government of Malawi (GoM) approached both the Millennium Challenge Corporation (MCC) and the World Bank to provide assistance to the country to pursue its economic growth and poverty alleviation agenda.
MCC Malawi Power System Project Studies, Feasibility Study and Investment Program (December 2009 – January 2011)
In December 2009, the MCC contracted with ICF International (Prime Contractor) and CORE International (Subcontractor) to undertake a major feasibility study and develop an investment program for the rehabilitation and expansion of the country’s power system. CORE International served as the Project Manager and provided the technical and engineering support; ICF provided environmental and social expertise for Phase I, and power resource planners for Phase II.
The work involved an evaluation of the entire country of Malawi’s power system including generation, transmission, and distribution. CORE served in the Management Role and brought together technical experts from numerous countries, with varying technical backgrounds, to define short-term, medium-term and long-term needs to improve the sector operations and management in order to enhance performance. This resulted in a detailed plan for equipment and service procurements, training and capacity building recommendations, specific recommendations for implementing programs and plans to achieve the greatest results with the least investment, and detailed results frameworks for monitoring and evaluation. The project also leveraged funding from other donors.
Specific activities included the following:
MCC Malawi Power Sector Compact Rapid Due Diligence (2012)
Following a delay of almost two years following the completion of the initial feasibility study, MCC retained CORE on a sole source basis to update the scopes and costs of the individual sub-projects as well as the entire infrastructure project in the Compact. The work resulted in a re-prioritized Compact infrastructure project. The work was an in-depth evaluation of the country’s entire electricity sector, which served as the basis for the MCC Board approval of a US $350.7 million Compact with the Government of Malawi (GoM).
The CORE Team assisted in structuring the entire project and all of the priority generation, transmission, and distribution projects. In addition, the CORE team reviewed the previously computed technical benefits, the economic rates of returns of project, project packages, and the Compact as a whole. CORE established the performance indicators and the year-5 targets and closely worked with MCC officials in defining specific indicators such as the number of additional connections, loss reduction, power quality improvements, etc. for the infrastructure project. CORE also provided specific recommendations to MCC on the type of indicators and targets for the Reform Project such as tariff rationalization, grid quality standards, etc.
MCC Malawi Power Sector Compact Project Oversight (2013 – 2018)
Under a five-year subcontract with ERM for the Independent Oversight of Malawi Compact Implementation, CORE is providing overall management services including a Project Manager, to supervise the work of the entire team consisting of 25 engineering, economic, and environmental specialists. The specific objective of this project is for the ERM/CORE Team to act as overall independent advisors on all aspects of the $350.7 million Malawi Power Sector Compact.
The first activity involved a host of pre-implementation and preparation activities before the Compact reached the point of Entry-Into-Force. Typical sub-activities included: prioritization of projects; review of monitoring and implementation plan; review of environmental, social, and resettlement issues and costs; revisions to Compact output and outcome indicators and targets; consulting engineer selection process; and other activities.
The second major activity involves an independent review of all pre-construction project designs and tender specifications for the generation, transmission, and distribution projects included in the Compact. Under this activity, the ERM/CORE Team is overseeing the work of the Consulting Engineer (Fichtner GmbH) for MCC. Mott MacDonald (UK) supports the ERM/CORE Team with various project engineering tasks.
The third major activity is to provide overall supervision support to MCC through quarterly reviews of the progress of Compact implementation including analysis and recommendation of any issues that may impact project quality, cost, and schedule risks. In this role, the ERM/CORE Team is coordinating all activities with the MCC, MCA-Malawi, ESCOM (the project beneficiary), MIRA (the Malawian regulator) and other stakeholders.
The Millennium Challenge Corporation Feasibility Study, Rapid Due Diligence, and Oversight Implementation work are signature projects of CORE International, Inc. as the Project Manager for each assignment.
CORE International, Inc. is a women-owned small business, providing management consulting services to clients worldwide since 1984.
CORE International, Inc.
www.coreintl.com
The Government of Malawi (GoM) approached both the Millennium Challenge Corporation (MCC) and the World Bank to provide assistance to the country to pursue its economic growth and poverty alleviation agenda.
MCC Malawi Power System Project Studies, Feasibility Study and Investment Program (December 2009 – January 2011)
In December 2009, the MCC contracted with ICF International (Prime Contractor) and CORE International (Subcontractor) to undertake a major feasibility study and develop an investment program for the rehabilitation and expansion of the country’s power system. CORE International served as the Project Manager and provided the technical and engineering support; ICF provided environmental and social expertise for Phase I, and power resource planners for Phase II.
The work involved an evaluation of the entire country of Malawi’s power system including generation, transmission, and distribution. CORE served in the Management Role and brought together technical experts from numerous countries, with varying technical backgrounds, to define short-term, medium-term and long-term needs to improve the sector operations and management in order to enhance performance. This resulted in a detailed plan for equipment and service procurements, training and capacity building recommendations, specific recommendations for implementing programs and plans to achieve the greatest results with the least investment, and detailed results frameworks for monitoring and evaluation. The project also leveraged funding from other donors.
Specific activities included the following:
- In depth evaluation of the country’s entire electricity sector, which served as the basis for MCC Board approval of a US $350.7 million Compact with the Government of Malawi
- Complete technical and financial analysis of the Government of Malawi’s priority generation, transmission, and distribution projects
- Corresponding environmental and social impact assessments (ESIAs), and a resettlement policy framework (RPF)
- Visits and inspections at over 200 sites in Malawi, including both urban and peri-urban sites and development of cost estimates for each of the 189 generation, transmission and distribution projects proposed by the Malawi government as well as numerous network extension projects
- Preparation of a Compact for MCC’s consideration and action
- Development of an Integrated Resource Plan (IRP) for the period 2015 – 2030 to provide Malawi with policy guidance on investments required beyond the MCC’s 5-year period
- Leveraging and coordination with the World Bank for a $70 million IDA credit to address economic opportunities in the peri-urban and rural sectors in Malawi
MCC Malawi Power Sector Compact Rapid Due Diligence (2012)
Following a delay of almost two years following the completion of the initial feasibility study, MCC retained CORE on a sole source basis to update the scopes and costs of the individual sub-projects as well as the entire infrastructure project in the Compact. The work resulted in a re-prioritized Compact infrastructure project. The work was an in-depth evaluation of the country’s entire electricity sector, which served as the basis for the MCC Board approval of a US $350.7 million Compact with the Government of Malawi (GoM).
The CORE Team assisted in structuring the entire project and all of the priority generation, transmission, and distribution projects. In addition, the CORE team reviewed the previously computed technical benefits, the economic rates of returns of project, project packages, and the Compact as a whole. CORE established the performance indicators and the year-5 targets and closely worked with MCC officials in defining specific indicators such as the number of additional connections, loss reduction, power quality improvements, etc. for the infrastructure project. CORE also provided specific recommendations to MCC on the type of indicators and targets for the Reform Project such as tariff rationalization, grid quality standards, etc.
MCC Malawi Power Sector Compact Project Oversight (2013 – 2018)
Under a five-year subcontract with ERM for the Independent Oversight of Malawi Compact Implementation, CORE is providing overall management services including a Project Manager, to supervise the work of the entire team consisting of 25 engineering, economic, and environmental specialists. The specific objective of this project is for the ERM/CORE Team to act as overall independent advisors on all aspects of the $350.7 million Malawi Power Sector Compact.
The first activity involved a host of pre-implementation and preparation activities before the Compact reached the point of Entry-Into-Force. Typical sub-activities included: prioritization of projects; review of monitoring and implementation plan; review of environmental, social, and resettlement issues and costs; revisions to Compact output and outcome indicators and targets; consulting engineer selection process; and other activities.
The second major activity involves an independent review of all pre-construction project designs and tender specifications for the generation, transmission, and distribution projects included in the Compact. Under this activity, the ERM/CORE Team is overseeing the work of the Consulting Engineer (Fichtner GmbH) for MCC. Mott MacDonald (UK) supports the ERM/CORE Team with various project engineering tasks.
The third major activity is to provide overall supervision support to MCC through quarterly reviews of the progress of Compact implementation including analysis and recommendation of any issues that may impact project quality, cost, and schedule risks. In this role, the ERM/CORE Team is coordinating all activities with the MCC, MCA-Malawi, ESCOM (the project beneficiary), MIRA (the Malawian regulator) and other stakeholders.
The Millennium Challenge Corporation Feasibility Study, Rapid Due Diligence, and Oversight Implementation work are signature projects of CORE International, Inc. as the Project Manager for each assignment.
CORE International, Inc. is a women-owned small business, providing management consulting services to clients worldwide since 1984.
CORE International, Inc.
www.coreintl.com