2007年-世界发展银行全球_Sierra_Leone___Power_Sector_Recovery_Strategy_Phase_I_47页_425kb

Summary of Sierra Leone Power Sector Recovery Strategy (Phase I)

Core Content

The Sierra Leone Power Sector Recovery Strategy (Phase I), prepared by Power Planning Associates Ltd. under the IDA Power and Water Credit and supported by the World Bank, aims to address the severe under-performance of the National Power Authority (NPA) in the Western Area of Sierra Leone. The strategy includes both technical and financial interventions to improve the reliability and efficiency of the power generation and distribution systems, which have been significantly affected by mechanical failures, fuel shortages, poor maintenance, and low revenue collection.

Main Issues and Challenges

1. Power Generation

• Current Situation: Generation capacity at the Kingdom thermal power station is extremely low. All four main generators were out of service during the field visit in 2006.
  • Mirrlees No. 3 unit failed on 25 September 2006.
  • Sulzer No. 4 unit is overdue for maintenance and has been out of service for minor repairs.
  • Sulzer No. 5 unit has not operated since 2005 due to a fire.
  • Mitsubishi No. 6 unit has bearing and oil purifier issues, with spare parts not available.
• Fuel Supply: NPA lacks sufficient funds to purchase fuel, leading to low generation and poor cash flow.
• Performance Indicators:
  • Energy generated (MWh/day): Target 434, Achieved 99
  • Station use (%): Target 4.7%, Achieved 8.3%
  • Fuel efficiency (kWh/IG): Target 22.4, Achieved 17.8
• Availability: Total availability of generating units was only 47% in the first 8 months of 2006, with Sulzer No. 5 at 0% and Mirrlees No. 3 at 41%.

2. Transmission and Distribution (T&D)

• Existing System: The T&D network in Freetown is outdated and poorly maintained, with frequent outages and high losses.
• HV and LV Cable Faults:
  • HV cable faults remain constant (around 9 per month) but repair rates have dropped due to material shortages and equipment breakdowns.
  • LV cable faults have also decreased but are still high.
• New Connections: Declined from 125 per month in 2004 to 95 in 2006, due to supply constraints and equipment unavailability.
• Key Issues:
  • Shortage of electricity supply.
  • Lack of materials and vehicles.
  • Inadequate fault detection equipment.
• T&D Department Operations:
  • Operates a 24/7 customer fault reporting center at Falconbridge.
  • Maintenance teams rely on two 15-year-old Land Rovers for transport.

Key Proposals and Counter Measures

Short Term Measures

1. Seek immediate technical and management support for the Kingdom power station, with remuneration tied to unit availability.
2. Procure spare parts to restore Sulzer No. 4, 5, and Mitsubishi No. 6 units.
3. Lease emergency generating plant (up to 15 MW) to provide base load power.
4. Urgently acquire additional vehicles, line conductors, poles, and fittings to enable repairs and reduce losses.
5. Develop alternative overhead line routes for primary underground feeder circuits, particularly between Kingdom and Falconbridge.
6. Implement a tariff adjustment formula that accounts for exchange rate and fuel price fluctuations.
7. Conduct asset revaluation to meet the requirements of the IDA Power and Water Credit.

Medium/Long Term Measures

1. Incentivize the management contractor to improve unit availability through revenue sharing or direct payments.
2. Assess the future role of Kingdom once new generating units (under BADEA/Saudi and JICA funding) are commissioned, with consideration of decommissioning.
3. Re-evaluate the location of the JICA-funded diesel generators for better performance and reliability.

Financial Position

• IDA Funding: US$1.5 million was provided in 2005 for spare parts and consultancy, but NPA has not met financial covenants since the agreement was signed.
• Cash Flow: Poor revenue collection due to low generation and high customer arrears has worsened the fuel supply and maintenance situation.
• Fuel Costs: The cost of electricity from emergency plant could be reduced to 23 USc/kWh (690 Le/kWh) if fuel duties are waived and competitive tendering is implemented.
• Tariff Adjustment: Current residential tariffs are 16 USc/kWh (479 Le/kWh), but an increase to 35 USc/kWh (1,050 Le/kWh) may be necessary to cover the higher cost of electricity after distribution losses.
• Debt Relief Impact: The HIPC Debt Relief has not significantly improved the financial situation of NPA.

Additional Generating Capacity

• BADREA Funding: Three new diesel generators (7.56 MW each) are planned for installation at Blackhall Road.
  • Phase 1: One unit expected by the end of 2007.
  • Phase 2: Two more units, one from BADEA and one from the Saudi Fund, expected by 2008.
• JICA Proposal: Two additional diesel generators (5 MW each) are planned for the Kingdom site, expected to be commissioned in 2009.
• Aggreko Proposal: Emergency plant of up to 20 MW is available on lease, with a cost of 26 USc/kWh (780 Le/kWh) if duties are waived.

Key Recommendations

• Improve generation unit availability through better maintenance, management, and spare parts procurement.
• Enhance T&D system reliability by repairing and upgrading the network, including LV systems and fault detection equipment.
• Implement cost-recovery tariffs and competitive fuel procurement to improve revenue and reduce losses.
• Secure funding for emergency generation and asset revaluation to meet financial obligations.
• Develop a 33 kV subtransmission system to improve supply reliability and reduce losses.

Conclusion

The Sierra Leone Power Sector Recovery Strategy (Phase I) highlights the urgent need for technical and financial interventions to restore the performance of NPA. The strategy outlines 10 key counter measures, with short-term actions prioritized to address immediate generation and distribution challenges, while medium/long-term actions aim to ensure sustainable recovery and improved service delivery. The success of these measures depends on improved management, funding availability, and effective implementation.