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Electricity Sector Policy Group for Egypt (ESPG)

Sponsored by the U.S. Agency for International Development (USAID), a team of AEAI engineering, financial and legal experts that included long- and short-term U.S. and Egyptian staff comprised the Electric Sector Policy Group (ESPG). ESPG was tasked with evaluating power sector reform needs and assisting in designing the frameworks for its implementation. The team provided specialized technical assistance to the Egyptian Electricity Authority (EEA) in the critical areas of the Egyptian power sector, including financial analysis of sector operations, review and analysis of private investment opportunities in conventional and non-conventional energy projects, decentralization of the sector, management and government training, regulatory reform and legal improvements.

Efforts focused on six areas: 1) energy sector strategic planning, including privatization of distribution, 2) power industry restructuring, 3) financial (debt management, fiscal reform) 4) commercialization/privatization (corporate governance), 5) legal and regulatory development, drafting 6) operations/management (inventory) and local logistical support. ESPG worked with the Ministry of Energy and Electricity (MEE) on coordination, facilitation, and interaction with individuals and organizations to assist MEE with its restructuring activities; identifying and recommending measures to resolve constraints and/or barriers continue technical assistance to EEA and electric companies (ECs).

AEAI worked with host-country counterparts via workshops and advisory to improve the financial and operational efficiency of the EEA.  Included in the team’s efforts were representatives from the private sector and investment community, as well as the donor community including USAID, the World Bank, the African Development Bank and the International Finance Corporation.  AEAI assisted in drafting regulatory body staffing structures and primary regulations; legal documents, including contracts; a cogeneration legal framework suitable for conventional and non-conventional fuel sources; and initial legal formats relevant for privatization of distribution.  AEAI worked with staff at the EEA and the ECs throughout the country to identify, assess and document information systems and related communication resources; define optimum approaches to design and implement future systems; and prepare formal long- range information systems’ plans. It leveraged training resources of IIE and USAID legal and fiscal reform efforts on privatization, commercialization and corporate governance training.

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"The contractor took advantage of every opportunity to provide excellent assistance to the Egyptian Electricity Holding Company (EEHC).  Counterparts were very appreciative of the efforts of the contractor's staff."
-  (USAID, Final CPR, Egypt Electricity Sector Policy Group, 5/9/2001)

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