VisionRI shortlisted for feasibility studies of AfDB funded electricity metering project in Cameroon

The overall objective of the consulting/ firm services is to carry out detailed feasibility studies for the implementation of an economic model and a framework for the subsidiary of electricity metering systems in Cameroon.

VisionRI, a global development consulting firm, is among the six international consulting firms shortlisted for ‘feasibility studies for the subsidiary of electricity metering services in Cameroon electricity sector’ financially supported by the African Development Bank (AfDB). The other firms are - Cabinet Africain de Gestion Informatique et Comptable CGIC- Afrique (Burkina Faso), CPCS & 2 AE Electricity (France), FICHTNER (Allemagne or Germany), DELOITTE (France) and DEV 2 E International (Canada). 

The project aims to minimize high technical and non-technical losses in electricity supply system mainly distribution losses due to non-metering in the country which was as high as 31.07% in 2018. These losses are primarily due to meter deficit of about 1.8 million units. This leads to huge revenue losses due to massive fraud in many rural, suburban and urban areas. “In reaction to this situation, the Electricity Sector Regulatory Agency (ARSEL) intends to set up a new economic model aimed at creating and approving new entities, metering service providers (FSC), with a view to provide innovative consumption metering services to distribution system operators (DSOs), governed by service level agreements (SLAs) between DSOs and FSCs,” reads the terms of reference (TOR) of the project. The Electricity Sector Regulatory Agency (ARSEL) of Cameroon will be the implementing agency for the project.   

Though the country has a mechanism to install meters, it is a very slow process as all the metering devices are imported and the operator is experiencing delays in the customs procedure for the exit of these devices at the port, thus causing a delay in compliance and contractual deadlines for carrying out connection requests made by users. The existing system has provided meters to 80,000 consumers per year between 2004-2014. “With the current rate of connection, it will take at least 10 years for the public service to double the number of customers billed (whose consumption is counted) and to fill the deficit in meters,” estimates ARSEL. The shortlisted firms are required to submit a detailed project proposal by 12.00 (Cameroon local time) on September 29, 2020.

"Energy is one of the key market areas of VisionRI. We have provided consultancy services for several energy-related projects in African and Asian countries while some are still under progress. The team is working on a robust economic model for the project and we are confident to get the assignment," said Mr. J. P. Singh, Managing Director, VisionRI Connexion Services Pvt. Ltd. VisionRI has recently launched an initiative Center of Excellence on Emerging Development Perspectives (COE-EDP) which aims to keep track of the transition trajectory of global development and work towards conceptualization, development, and mainstreaming of innovative developmental approaches, frameworks, and practices in the focused market areas of the company i.e. Energy, Transport, Urban Development, Natural Resource Management, Public Health, Digital Development, Education and Development Communication.

The finally selected consultant firm will be required to conduct a detailed study to determine economic, technical, legal and commercial factors and the potential impacts of the program in light of the project objectives. The scope of the project comprised of a market, financial model and program structure, cost-benefit analysis of the program, and risk analysis. All reports and documents will be required to be written in French and the final versions translated into English. 

AfDB is supporting the project under – Light up and Power Africa – the first of its High5s operational priorities i.e. Light up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa. Earlier, AfDB had supported electricity sector in Cameroon by granting 150 million euros for 420 MW Nachtigal hydroelectric project in 2017. In the present project, the bank through the Private Sector Assistance Fund in Africa (FAPA), will provide technical assistance to ARSEL to support the spin-off of electricity consumption metering services, the definition of a revenue model that prioritizes investments and cost recovery, including, but not limited to, the calculation and structuring of metering service charges; the enumeration and structuring of the methods of financing the acquisition of meters, until the standardization of the provisions of the service level agreements (ANS).