Uganda - Power system efficiency study

Joint UNDP/World Bank Energy Sector Management Assistance Program Activity Completion Report No. 092/88 Country: UGANDA Activity: POWER SYSTEM EFFICIENCY STUDY DE6EM4ER 1.988 Energy Efficiency and Strategy Unit Industry and Energy Department Report of the lomt UNDPA/Urd Bank Ener Sector Management Assistance Program This document has a restricted distribution. Its contents may not be disclosed without authorization from the Government, the UNDP or the World Bank.  EMEGcY SECTOR MANACEMENT ASSISTANCE PROGRAM PURPOSE The J-int UNDP/World Batxk Energy Sector Management Assistance Program (ESMAP) was started in 1983 as a companion to the Energy Assessment Program, established in 1980. The Assessment Program was designed to identify and analyze the most serious energy problems in developing countries. ESMAP was designed aFs a pre-investment facility, partly to assist in implementing the act ons recommended in the Assessments. Today ESMAP carries out pre-investment activities in 45 countries and provides institutional and policy advice to developing country decision-makers. The Program aims to supplement, advance, and strengthen the impact of bilateral and multilateral resources already available for technical assistance in the energy sector. The reports produced under the ESMAP Program provide governments, donors, and potential investors with information needed to speed up project prepar- ation and implementation. ESMAP activi.ies fall into two major groupings: - Energy Efficiency and Strategy, addressing the institutional, financial, and policy issues of the energy sector, including design of sector strategies, improving energy end-use, defining investment programs, and strengthening sector enterprises; and - Household, Rural, and Renewable Energy, addressing the tech- nical, economic, financial, institutitnal and policy issues affecting energy supply and demand, including energy from traditional and modern sources for use by rural and urban households and rural industries. FUNDING The Program is a major internatiozAal effort supported by the UNDP, the World Bank, and bilateral agencies in a number of countries including the Netherlands, Canada, Switzerland, Norway, Sweden, Italy, Australia, Denmark, France, Finland, the United Kingdom, Ireland, Japan, New Zealand, Iceland, and the USA. INQUIRIES For further information on the Program or to obtain copies of the completed ESMAP reports listed at the end of this document, contact: Division for Global and OR Energy Strategy, Management Interregional Projects and Assessment Division United Nations Development Industry and Energy Department Programme World Bank One United Nations Plaza 1818 H Street, N.W. New York, N.Y. 10017 Washington, D.C. 20433  UGANDA POlla SYSTEM WEFICIINCY STUDY DECEMBER 1988 Energy Efficiency and Strategy Unit Industry and Energy Department World Bank  UGANDA POWER SYSTEM EFFICIENCY STUDY Foreword A mission consisting of Messrs. W. Hay and H. Kron (consultant power engineers) visited Uganda in September 1986 to conduct a power system efficiency audit of the Uganda Electricity Board (UEB). This study originally was intended to focus on the distribution system only with the specific tasks of: (a) analyzing the level and location of distribution system losses, as well as reliability levels and work procedures and preparing terms of reference for system improvements; (b) evaluating distribution system planning for the Kampala area and preparing terms of reference for detailed distribution studies; and (c) assisting in the preparation of a temporary 132 kV/33 kV substation. While in the field, however, it became clear to the mission that the most important issue that needed to be addressed was the effectiveness of overall organization and operational procedures to tackle the large-scale technical and financial rehabilitation of the power system and the problem of low productivity of existing staff. It was felt that unless a plan were developed to deal with these problems, piecemeal changes in the distribution area or other areas of URB's operations would not be effective. The present report focuses mainly on the problem of management effectiveness and contains terms of reference for technical assistance to help UEB develop a management improvement plan. Also, the mission cites a number of deficiencies in the system which cause high losses and recom- menda that UEB collect the necessary data and analyze distribution system losses as part of the recommended distribution system planning study. The mission was not able to assist in the preparation of a temporary 132 kV/33 kV substation because the step-down trdnsformer which was to have been used had been installed elsewhere and no replacement unit was available. Thus, the main focus of this report in the distribution area is an analysis of deficiencies in equipment and operational procedures and the preparation of terms of reference for a distribution system planning study. In the interval between the mission's visit and the issuance of this report a number of important institutional and operational changes have been effected in UEB. In addition, several studies addressing the various problems have been completed and are being implemented, (e.g. the report on management and training by British Electricity International). It is the opinion of UEB's management that full implementation of the recommendations of the various studies will rectify the problems addressed in this report. The report presents the situation as it was at the time of the mission's visit and dees not reflect any changes which have taken place in the two years which have since elapsed.  Exchange Rate (September 1986) Official exchange Rate Shadow Exchange Rate 1600 Ugandan Shillings u US$ 1 8000 Ugandan Shillings - US$1 1 Ugandan Shilling UR$0.000625 1 Ugandan Shilling 3 US$0.000125 Energy Measures CWh Gigawatt hour kV kilovolt kVA kilovolt ampere kVAh kilovolt ampere hour MS Megawatt MHh Megawatt hour V Volt Acronym. and Abbreviations ACSR Aluminium conductor, steel reinforced CDC Commonwealth Development Corporation IDA International Development Association ODA British Overseas Developmenmt Agency PILC Paper Insulated Lead Covered PVC Polyvinyl chloride UEB Uganda Electricity Board UNDP United Nations Development Program  TABLI OF CONTNT pag FOREWORD *cecoec.......eec ............................... i Recent Performance and Organizational Concerns ......6 1 Lo sues ................*,..e.........@.............. c ......... 2 Generation..... ......... ........... ,0 3 Transmission/Distribution............................. 4 Efficiency Improvement 8trategy....................... 5 II. RECENT PERFORMANCE AND ORGANIZATIONAL CONCERNS ............ 8 Problems Inhibiting Efficient Operation............... 8 Institutional Structure. .................... .......... 9 Personnel ........................................................ 11 Training ... ......... ......................................... 12 Finances ................................................. 13 Management Information Systemso.......... .....eo.c.... 14 Company Transport ........................... i..... 14 III. POWER SYSTEM LOSSES ....................................... 16 Von-Technical Losses ..................................... 16 Technicalos ........................................... 19 Installed Capacity..... .................00....... 21 Staffing ....... ............................... cc............. 21 Operating Problems at OvenFalls...................... 21 Other Generation ..................................... 22 Generation Expansion Planning......................... 23 V. TRANSMISSION AND DISTRIBUTION............................. 26 Overview .......... c..e..e .c.....c. .00.e.S.e ....e.......... 26 Existing System Description............................. 27 Operating Problems and Deficiencies ....cc....c.....cc.. 28 Transmission ............................................... 28 Sub-transmission ..................... ...........ae. 28 11 kV Substations and Primary Distribution System..... 30 Distribution Transformers and Low Voltage System...... 33 Assistance from the British Overseas Development Agency ( ODA) ......... 35 Additional Equipment Proposed by Kennedy and Donkin... 35 Recommendations ..c.......c..ee.c...e.c......c.....e..c. 36  TABLES 1.1 Proposed Strategy for Efficiency Improvement of the Electric Power Subsector.............................. 5 3.1 Losses in the UES System, 1980 to 1985.................... 16 4.1 Isolated Diesel Installations............................. 22 4.2 UEB Load Forecast (1985 to 2000).......................... 23 5.1 Average Number of Customers Connected to Transformers..... 27 5.2 Average Load Loss Per Month by Type of Outage (1982-86)... 30 5.3 Average Load Loss Per Month by Type of Outage (1982-86)... 32 5.4 Causes of Distribution Transformer Failures*.*.***.*..... 34 5.5 Analysis of Low Voltage System Outages .................... 35 5.6 Recommendations for Improved Distribution System Reliability ............................................... 38 5.7 Proposed Short-Term Improvements to the Transmission/so*** Distribution Syst................................. ....... 40 FIGURES 1. Uganda Electricity Board Organizational Structure......... 10 2. Kampala Area Transmission and Subtransmission System...... 25 1. Terms of Reference for Assistance to the Government of.... Uganda in Developing a Management Improvement Program..... for the Uganda Electricity Boardt.......................... 42 2. ODA Emergency Materials........................ .. 45 3. Terms of Reference for System Planning Study.............. 47 MAP IBRD 16933R1 - Uganda Power System  I SUMMARY Recent Performance and Organizational Concerns 1.1 The Uganda Electricity Board (UEB) has done an admirable job of meeting Uganda's power needs through a very disruptive civil war and the continuing economic crisis. But UEB still is facing serious financial and technical problems which inhibit the organization from generating and distributing electricity at least cost. These include: (a) physical deterioration of the power system due to a lack of foreign exchange for replacement equipment and inadequate preventive maintenance; (b) losses amounting to about 40% of net generation, mainly non-technical losses resulting from the lack of an effective system for billing electricity consumption and collecting revenues; (c) numerous outages which have diminished system reliability significantly; and (d) a low level of staff motivation and productivity which underly the inefficiency in current operations and threaten the success of any operational improvements. 1.2 Inadequate financial resources resulting primarily from unrealistically low tariffs and the continuing disruptive effects of years of civil war have prevented UEB's management from dealing effectively with the root causes of inefficiency such as reducing the excessively large staff and improving staff productivity. Given the scale and variety of problems faced by UEB and the enormous rehabilitation/planning work required, there is an acute need for trained line managers to supervise this work as soon as possible. UEB also needs to reduce the number of its employees, provide adequate training for those who remain in service and develop reliable consumer data base and management information systems. 1.3 Several studies underway or recently completed are designed to improve UEB's operations. These studies cover organizational structure, training, billing procedures, revenue collection, stores systems etc. The resulting reports will recommend changes in the structure and effectiveness of URB's management to produce improvements in the specific areas covered by the studies. 1.4 Chapter II of this report gives an overview of problems which are hindering UEB's performance and stresses the need for improvements in the organizational structure and administrative procedures to increase UEB's efficiency. Concerning the future organization of UEB, the report recommends that the Government of Uganda assisted by a team of specialists, prepare a project for establishing a structure and related operating procedures which would exercise UEB's autonomy to make the necessary changes for reducing costs, improve staff productivity, increase revenues and rewtrd productive workers with adequate salaries so that they are not forced to seek employment elsewhere on UEB time in order to feed their families.  - 2 - 1.5 Since virtually every aspect of UE8's operations requires revamping, it is extremely important to develop a skilled management team to implement those changes recommended by the various ongoing and planned studies which will be accepted by UEB's Board of Directors and thereafter to maintain operations at an increased level of efficiency. It is recom- mended, therefore, that the Government of Uganda contract with external specialists to fill line-management positions for a period of three to four years, during which time UEB counterpart staff would be selected and trained to assume these positions at the end of the contracted management period. Annex 1 provides Terms of Reference for a small team of experts to assist the Government of Uganda and UEB in preparing a management improvement plan for the transition period and evaluating proposals from qualified candidates to implement the plan. The cost of this project preparation work is estimated at US$75,000. 1.6 Regarding training, it is recommended that, in addition to renovating the Owen Falls training center, UEB endeavor to provide training opportunities closer to Headquarters. Considering that the reorganization and rehabilitation of the UEB system will require a suostantial amount of training, it wouLd be more useful to have training facilities closer to Headquarters so that they may be used for courses of a day or less and not only for residential courses of extended duration. 1.7 Chapters III and IV of the report deal with specific areas of UEB's system --technical and non-technical losses, and rehabilitation needs as well as operational deficiencies in the generation and transmission of electrici.y. The findings and recommendations in these areas are outlined below. Losses 1.8 UEB's high system lossea are believed to be meinly non- technical in nature, resulting from unauthorized connections, unmetered supplies, poor meter servicing, and inadequate billing procedures. Ongoing studies in organization, training and billing system operations should lead to improved procedures which, after they are implemented over a few years should reduce losses substantially. However, in the mean- time, UEB must begin a number of activities on its own to improve its efficiency and try to lessen its financial losses. These activities would consist of: (a) establishing a program of house-to-house inspections to determine the status of consumers connected to the system and account for the energy sent out; (b) introducing a minimum monthly bill to be paid regardless of consumption. This would offset the fixed costs to UEB associated with each consumer and would help detect inactive accounts. These accounts can then be disconnected, if necessary, and removed from the billing register;  (c) collecting a monthly flat-rate charge on unmetered connections; (d) implementing a program of meter sealing throughout the country, beginning with the larger consumers and more densely populated areas; (e) replacing or recalibrating old meters. 1/ 1.9 The mission was unable to make a reliable estimate of technical losses in UEB's distribution network but did note several indicators of significant losses. For example, many feeders are being loaded above their design capacities and this practice results .n unsatisfactory voltage levels for the consumers as well as the frequent burning of jumpers, joints, and sometimes even the feeders themselves. Moreover, the power and distribution transformer capacity clearly is inadequate to the load supplied, resulting in losses above normal levels. The distribution network's design includes very long secondary lines supplied by a small number of large transformers which probably result in losses that are greater than would be the case with shorter, low-voltage lines combined with a large number of transformers with a lower average rating. 1.10 The study of distribution system planning, recommended in para. 5.5, should quantify losses on the exieting system and develop designs for improvements taking into account the need to reduce losses and improve the reliability of supply. The estimated cost of this study is US$246,000 and Terms of Reference are found in Annex 3. 1.11 Reduction of losses will improve UEB's finances and make more energy available for export. These sales are paid for in foreign exchange which is of economic benefit to Uganda. In addition, if losses are re- duced the need to invest in new generating facilities will be postponed. Generation 1.12 Rehabilitation work is underway to restore generating units which are out of service at the Owen Falls Station (150 MW). As part of this rehabilitation process, the alternators of the units will be reinsulated and the maximum output of the station will increase from 150 MS to 180 MW. 1.13 Outside the main electricity grid, the availability of isolated diesel units is significantly below maximum demand in their regions of operation due to a lack of spare parts and preventive maintenance. Although generation from these units amounts to only 12 of the national total, their immediate restoration nevertheless is crucial because they are the main source of power to the isolated communities they serve. 1/ Recommendations in subparagraphs (a), (c), (d) and (e) were being implemented in 1988.  - 4 - UEB's plans are eventually to extend the rural electrification services from the grid to eliminate these diesel stations, but until such time is proceeding to restore the diesel plants to full working order and implement an effective preventive mintenance program. 1.14 Uganda's draft power system development plan indicates that by 1992 the fihm capacity of the Owen Falls Station will be insufficient to meet projected demand (162 MW including exports). The plan recommende building a new hydro plant (180 MW) at Bujagali, downstream from Owen Falls station, as the next step in power system development. 1.15 Although a new hydro site will have to be developed sometime in the next 10 to 15 years, the mission believes that it may be possible to defer the investment in new facilities through an increase in ge-nerating capacity at the Owen Falls site, supplemented, if necessary, with thermal back-up capacity in the case of insufficient water flows. The mission strongly recommends that UBB evaluate this option within the context of its least-cost development plan before proceeding with the engineering of the Bujagali project. Transmission/Distribution 1.16 Through a grant from the British Overseas Development Agency CODA), Uganda is receiving some of the equipment required to rehabilitate its distributiou system at a cost of US$1.6 million. 2/ Kennedy and Donkin have prepared a report on the rehabilitation and uprating of the UEB systems. This report indicates additional equipment needed to improve the reliability of supply (para. 5.37). UEB and the mission have reviewed their proposal and agree that some of these recommended improvements should be postponed until the completion of a detailed system planning study for the Kampala area which evaluates rehabilitation alternatives and establishes a clear direction for future system development (para. 5.39). It was also agreed that :ertain improvements integral to adequate system operations should be made immediately without awaiting the outcome of the planning study. These improvements are listed in Table 5.7. 1.17 It is recommended that UEB contract specialist services to undertake the system planning study and to train UEB's engineering staff in applying computerized system planning techniques. The cost of the 2/ A list of this equipment is attached as Annex 2.  - 5 - study is estimrted at US$246,000 and its Terms of Reference are attached as Annex 3. Efficiency Improvement Strategy 1.18 Table 1.1 presents a summary of the proposed strategy for UEB efficiency improvements. Table 1.1: PROPOSED STRATEGY FOR EFFICIENCY IMPROVEMENT OF THE ELECTRIC POWER SUBSECTOR Issues Objectives Recommendations Studies Priority A. Institutional (a) Employee prompter response to Increase basic compensa- First productivity, consumer requirements; tion and trim staff (para 2.15) lower total wages and numbers; introduce salary costs; Improved incentive awards scheme staff morale, based on performance indices, (para 2.18); introduce management and sit l Is training programs (para 2.23) (b) Shortage of skills More efficient Provide training Organization and Third necessary for discharge of utility s facilities closer to Training Study efficient utility responsibilities; less employee centers, (para (British Electicity operation dependence on external 2.23); develop International 1987); (para 2.22). expertise. appropriate training Proposed Management programs for selected Improvement Study employees (para 1.6). (Annex 1). (c) M4anagement Provision of Assign responsibilities - Second Information technical, financial for management Systems (para and other data to information systems, 2.25) assist informed, preferably computerized prompt and effective (para 2.25) decision-making.  - 6 - Issues Objectives Recommendations Studies Priority B. Losses (a) Sum of technical Reduce losses, Commission study to Distribution planning First and non-technical increase revenues, determine extent of study to quantify losses exceed 40 defer Investments, technical and non- technical losses percent of energy technical losses respec- (Annex 3). sent out over UE8 tively (para 1.10, system (para 3.3). k.17,5.5). See also r ommendatIons (b) to (g) below. (b) Unauthorized Increase revenue House to house Inspection - First consumers connect collections. Reduce to locate and disconnect directly to the uneconomic Increases unauthorized supplies, grid; revenue not In demand. Prosecute offenders collected and (paras 1.8(a),3.5, 3.7). demand Increased. (c) Many accounts on Improve etficlency of Introduce minimum bill - First billing register billing process, and remove inactive Inactive (pars accounts from billing 3.12). register (para 1.8(b), 3.12). (d) Meters register Correct recording of Meter inspection and - Second Inaccurately energy consumed to sealing program. Replace because of defects Increase revenue older or defective or tampering. inflows. meters. Seal all after Revenue lost (para inspection or replacement 3.11). (para 3.11). (e) Irregular billing Increase revenue Avoid unmetered supplies. - Second of ummetered collections. If such are necessary, consumers with ensure that the consumers authorized direct receive monthly estimated connections (para bill (para 1.8.Cc)). 3.9).  - 7 - Issues Objectives Recommendations Studies Priority (f) High level of Improve quality of Commission study to Economic Loss Reduc- Third technical losses service. Reduce determine economic tion program as part due to: losses. technical loss reduction of distribution plan- - overloaded program (para 3.17, para ning study (Annex 3). transformers 5.38 and Annex 3). (para 3.15); - Inappropriate conductor material (para 3.16, 5.31); - long secondary lines (pare 3.17, 5.34). C. Generation (a) Least cost genera- Maximize generation at Re-evaluate potential of Review of hydrology of Second tion expansion Owens Falls site. Owan Falls for expansion Lake Victoria (para strategy (para (para 4.13). 4.13). 4.13). (b) Security of supply Acceptable quality of Rehabilitate diesel units - Third to isolated sys- service to all serving isolated systems tems (para 4.8). consumers. (para 1.13). D. Transmission and Distribution (a) Operating Reliable power supply Improve operating and Distribution planning First condition of T and to consumers. maintenance procedures study to determine D system (para (para 5.38, Table 5.6); rehabilitation needs 1.1, 5.3, 5.22- purchase new equipment and revise engineering 5.25, 5.29-5.30). (para 5.42, Table 5.7), standards (para 5.39, Annex 3). (b) Firm transmission High supply Investigate feasibility Conduct detailed Second capacity supplying reliability to the of upgrading 66 kV Owen feasibility study Kampala (para major load center. Falls to Lugogo line to (para 5.41). 5.14). 132 kV (para 5.39, 5.41). (c) Many TID system Reliability and Rebalance loads (para First components over- quality of supply. 5.16), reallocate feeder loaded (para 5,15, loads (Table 5.6, items 5 5.21,5.23,5.31). and 11).  - 8 - II. RECENT PERFORMANC AND ORGANIZATIONAL CONCERNS Problems Inhibiting Efficient Operation 2.1 The management of the Uganda Electricity Board (UEB) has serious financial and technical problems which severely inhibit its operating efficiency, making it difficult to deliver electricity to customers at least cost. 2.2 The main financial problem is the lack of sufficient foreign exchange as well as domestic currency to invest in technical improvements to the power system, which has been badly damaged by civil war and a lack preventive maintenance. This scarcity of foreign exchange is pervasive in all sectors of Uganda's economy and its availability to the U8B depends on priorities established by the Government. The lack of domestic currency results from poor internal cash generation caused by an inefficient billing system, defective metering, electricity theft, and inadequate collection on electricity billed. 2.3 UEB bills only about 60Z of the net electricity it generates for internal distribution. The other 40% is lost due to (a) problems in metering and billing, resulting in financial losses since electricity is being used by consumers but not accounted for in UEB's commercial records and (b) technical characteristics of the transmission and distribution system, such as overloaded transformers and inappropriate conductor material and sizing, leading to economic losses since resources used to generate electricity are not being used by consumers. 2.4 A significant source of losses is the unauthorized connection to the grid of consumers who circumvent the billing system. Many of these consumers have had long-standing applications for service which have not been processed as yet due to UEB's lack of funds for the requisite materials. Such connections not only cause losses but are dangerous to the consumer since they do not adhere to safety standards; moreover, they often cause damage to transformers due to improper wiring. 2.5 In addition to losses, the poor financial condition of the UEB is exacerbated by the fact that the company collects only 80X of what it actually bills, at a low tariff rate of US$.015 per kWh. The mission was not able to assess UEB's financial situation at all because it did not have access to recent financial statements. 2.6. On the technical side, the condition and reliability of the power system have deteriorated extensively. Most of the electricity generated by UEB comes from the Owen Falls hydropower station, which is operating at a maximum of only 701 of its rated capacity of 150 MW. The distribution system has experienced numerous voltage problems, high losses, thermal overloads and outages. Many areas of Kampala, the capital, have been without power for months because of transformer failures and a lack of spare parts.  - 9 - 2.7 The main obstacles to resolving these financial and technical problems are the low productivity of UES employees and the lack of effective management systems to motivate employees, improve finances, procure equipment required and establish operating and maintenance procedures geared to supplying efficient, reliable electricity service. 2.8 UEB's staff is large in proportion to the number of consumers it serves; there is one employee for every 34 customers compared to a ratio of between 120 and 160 in more efficient utilities of comparable size. The low productivity of UEB employees is due primarily to a very poor salary and incentive structure whereby many employees receive a monthly wage which is just enough to adequately feed a family of four for a few days. 2.9 Furthermore, there are several serious deficiencies in management structure and operations which pose signifitant obstacles to restoring financial viability and improving the quality of electricity service. First of all, the management does not appear to have sufficient authority to make the structural changes required to deal with the low productivity problem, such as reducing the size of the staff, raising the salary of those who remain and se-ting up a performance monitoring system. Secondly, there is no single person responsible for the technical administration of UEB. Moreover, there is no reliable customer data base to help control the unauthorized use of electricity. Institutional Structure 2.10 The Uganda Electricity Board (UEB) came into existence in January 1948 shortly after a decision to construct the Owen Falls hydro- electric project for providing power. to Uganda on a large-scale. A Board of Directors, appointed by the Minister of Energy, oversees UEB's performance, and establishes the policy guidelines under which it ought to operate. The Board consists of not less than five members and no more than nine. The Chairman is also the Managing Director and Chief Executive of the organization. 3/ 2.11 UEB's organization at the time of the mission's visit is shown in Figure 1. Its administration is centralized in Kampala, where all officers reporting directly to the Deputy Managing Director are located except for the Chief Generation Engineer, whose office is in the Owen Falls generating station, For consumer services, the country is divided into four regions (East, North, Central and West), and further subdivided into 26 districts. Each region should be headed by a Regional Manager, but at present these positions in the eastern and northern regions are vacant. Each district is administered by a district manager. 3/ This section on institutional structure and Figure 1 represent UEB's organizational structure at the time of the mission's visit. They are no longer accurate and UBB was restructured in 1987.  Fig. 1: UGANDA ELECTRICITY BOARD ORGANIZATIONAL STRUCTURE I CHAtRMAN AND MANAGING DIRECTOR DEPUTY MANAGING DIRECTOR CHIEF CHIEF CHIEF CONSTRUC- CHIEF CH GENERATION ELECTRICAL TION COMMERCIAL CH ENGINEER ENGINEER MAINTENANCE ENGINEER ACCOUNTANT TRNPT SEUIYTASTC SCEAY DSRCS ENGINEER *Electrical ODistribution * Construction * Commercial *Internal *Legal Maintenance Maintenance Operations Audit Affairs Mchanicl * System * Maintenance Mehalnicnan oSysterin (Transmission *Wages *Personnel dalntenance Oprtos Substations) *PowerStation *Cornmunications *Data Processing *Housdng and 0 po"r Stadon Vftl~~~~~~~~~~~~~~~~~~~~~~~~~~fare Operations *Planning *Purchadng Trare Diesel Units *Revenue Trbin *Public *Accounting Relations *Stores World iank-31 t85:2  - 11 - 2.12 UEB's organizational structure has several major deficiencies which inhibit efficient operation. First, the management does not in practice exercise authority to make structural changes to improve operational efficiency. For example, tackling the problem of 1-- productivity may involve reducing the size of UEB's staff, raising tn salary of those who remain and setting up a system to monitor employee performance. Although UEB's charter grants sufficient flexibility to make these changes, in practice it would be difficult to implement them because UEB apparently adheres to civil service restrictions. Secondly, UEB lacks an adequate customer data base for its management to control non-technical losses. Thirdly, the position of "Chief Engineer", which existed some time ago, has not been filled recently and is no longer shown on the organization chart. It is absolutely essential for an electric utility the size of UEB to have someone with overall responsibility for managing technical affairs, including the planning of system expansion. Finally, there are at least nine other positions reporting directly to the Deputy Managing Director, and it would be impractical for this number to be increased to include regional and/or district managers as well. Personnel 2.13 The present number of UEB employees is approximately 2,800, of which about 300 are temporary. Temporary employees are paid on the basis of a daily rate which corresponds to the national minimum wage. The lowest paid permanent employees are paid by the month at a rate which is not substantially higher than the minimum wage. Of the 2,500 permanent employees, about 1,600 are paid at or about the minimum wage, and can therefore be regarded as unskilled labor. The number with tertiary education is estimated at 160. UEB's practice is not to recruit skilled persons with prior experience believing that the nature of electric utility business is such that experience gained externally will not be of significant advantage to the utility. 2.14 The staff is unionized up to the level which reports to depart- ment heads. There are two bargaining units, the "UEB and Allied Workers' Union", which represents employees below the supervisory level, and the "Permanent Senior Staff Association", which represents unionized staff at or above the level of supervisor. 2.15 UEB's staff is large in relation to its number of consumers or the size and complexity of the system. The number of employees reflects low average productivity in nearly all areas of operation. The primary cause of low productivity is the low salary structure at all levels of UEB staff. This is exacerbated by the lack of essential resources for efficient operation (transport vehicles, tools, etc.) due to UEB's financial constraints. The problem is not confined to U8B, but is fairly typical of all public sector employees. Effective October 1986, all public sector employees were given an increase in salary which ranges from 50X for those on the minimum wage through a range of gradations to 30X for the most highly paid. On this new scale, the minimum wage now  - 12 - becomes 10,000 Uganda shi'.lings per month or about US$7.15 per month at the official rate of exchange, or US$1.25 per month at the so-called "open market" rate. 2.16 The purchasing power of the employees at such salaries is minimal. For example, a bunch of matoke, (a type of banana which is a staple item in the Uganda diet), costs about 12,000 shillings and will feed a family of four for an average of three days. A kilogram of meat averages 7,000 shillings, a live, average-sized chicken 15,000 shillings. Thus, the sheer pressures of existence force the UEB employees to seek means of augmenting their income. Some, reportedly, assist consumers in circumventing UEB's billing system. 2.17 Furthermore, employees who live beyond walking distance from their place of work cannot afford to take public transportation and UEB uses operational vehicles to transport employees. The limited number of vehicles, the large number of employees to be transported and the distances involved make it impossible to adhere to any schedule of punctual reporting to the workplace and the process is repeated at the close of the working day. Although the official working hours are 7:30 a.m. to 4:30 p.m., many field employees seldom report to work before 9:30 a.m. or remain past 3:30 p.m., and some engage in non-UEB activiti2s during that period. 2.18 The problem of productivity is the most fundamental one faced by UEB and any increase in resources will not have lasting benefits unless employees can be motivated to spend more hours in the Board's service asid to produce more per hour. A solution to the problem is very difficult, especially as low wages and productivity are not confined to UEB alone. A recommended approach is the introduction of incentive payments which will be made to all employees on the basis of indices of performance which are objective and easily quantified, (e.g. losses, accounts receivable, meters read per month, etc.). However, even with a significant increase in salaries at all levels, the productivity problem will not be solved completely. The employees must also be convinced that the Board's welfare is in their personal interest and the managerial systems muss be in place to ensure punctuality and efficiency at the workplace. Training 2.19 All recruits for skilled positions in UEB require some related formal academic training before employment. They are regarded as trainees for the first two years on the staff. 2.20 Craftsmen, such as linesmen and mechanics, are required to attain the "0" Level standard in high school and to have completed a two- year course at a technical institute. After being hired, they are placed  - 13 - in a position for a two-year training period. Craftsmen are not normally given experience in other positions during training. 4/ 2.21 On initial employment, professional recruits are also placed in a two-year training program. However, they are given assignments in different areas of the Board's activities during this period in order to develop a broad understanding of the way in which UEB functions. UEB encourages professional development by assistance in further education, such as the diploma course in business management conducted locally, and by overseas post-graduate courses and practical training. The majority oi overseas training is funded by the British Council, and some by the United Nations Development Program (UNDP). 2.22 UEB itself provides no formal training. Facilities for training of craftsmen, and, in particular, linesmen; once existed at Owens Falls, but these gradually deteriorated and are no longer being used. Aere are no suitable lecture rooms or other facilites in Kampala, and therefore tt-ere is no supervisory or management training given. Financial resourcis will not allow the hiring of external facilities for this purpose. Under the Bank's Second Power Project Loan, US$391,800 in foreign exchange and the equivalent of US$461,400 in local currency have been allocated to a manpower and training study and to refurbishing the training center at Owen Falls. British Electricity International (BEI) consultanqs have been contracted to do the study which is expected to be completed in October, 1988. 2.23 The mission recommends provision of training facilities in the Kampala area as well as Owen Falls. The distance between Kampala and Owen Falls will make the latter unsuitable for anything but residential courses for the majority of UEB employees. If, instead, a center were located close to UEB headquarterst it would be possible to present courses of one day or less, and such courses could be of great value in helping UEB develop its supervisory and management personnel, as well in as giving safety and other practical instructions. Finances 2.24 The mission did not have access to detailed financial information on UEB. It is evident, however, that UEB is facing a severe financial constraint as a result of high losses, low tariffs and high 4/ Some years ago a national program existed by which craftsmen were graded. Tests were administered by the Ministry of Labor and the grades awarded as a result of these tests were therefore nationally recognized. Since these tests were discontinued, no upgrading of craftsmen classifications has taken place. Supervisors may recommend individuals for salary upgrading on the basis of merit, but such upgrading does not affect the skills grade and is limited to not more than four employees annually in any one section.  - 14 - accounts receivable. At the time of the mission in September 1986, its accounts had not been audited in more than two years. These constraints have affected UEB's ability to purchase adequate quantities of goods and services required for efficient operation of the utility. Further difficulties have resulted from a shortage of the foreign exchange required for essential purchases overseas. As a result, the utility is experiencing critical shortages of essential equipment and materials such as transformers, fuses, meters, service wire, etc., and there are areas of Kampala which have been without power for several months because of a lack of the materials required to restore service. Management Information Systems 2.25 Much of the information required to easily assess UEB's performance is not readily available. Statistics on such important indices as net generation, hourly load demand profiles, losses, sales, collections, feeder loadingi, etc., are not maintained up-to-date. Part of the reason for the lack of information has been unreliability of the computer, but not all of these statistics are maintained on the computer. 2.26 The computer is used for consumer billing, accounting, payroll and storep inventory. It was bought new in 1971, but the model was discontinued in 1976. In 1981, the manufacturer informed owners of that model that spares could no longer be guaranteed. The machine has become increasingly unreliable and has severely affected consumer billing in particular. A new computer is to be purchased under the Bank's Second Power Project and should be installed in August, 1988. Company Transport 2.27 UEBS's transport fleet consists almost exclusively of Land Rovers and trucks. The fleet once contained about 130 vehicles, but just over 100 of those were lost in recent civil strife. Management and operational personnel are allowed personal use of Land Rovers assigned to them and many of these vehicles are used primarily as personal transport. Company trucks transport employees to and from work. There is only one omnibus in the fleet. 2.28 The shortage of transport vehicles contributes to low overall productivity, by slowing down response to power supply interruptions. Furthermore, crew sizes are larger than is necessary or desirable, and vehicles are very often not ideal for the jobs they are required to perform. The sum of US$1.7 million in foreign exchange was allocated for the purchase of vehicles under the Second Power Project. 2.29 UEB already is receiving a substantial amount of assistance, in specific areas, designed to help restore the system's financial and technical reliability. This assistance includes: (a) the rehabilitation of the Owen Falls station; and the procurement of distribution equipment (from British ODA); (b) a study on the adequacy of UEB's stores and workshops; (c) the training of linesmen (ODA); (d) a study of the  - 15 - billing/collection systems; (e) an organization and training study; and (f) the engineering v.ork for the system's next hydropower station. However, this assistance now needs to be integrated into an overall plan for recovery that should consider options for improving management effectiveness and UEB's productivity. The remaining gap in required studies is a least-cost expansion plan for the UEB's transmission and distribution systems. Without a viable framework for implementation, a piecemeal approach to reconstruction is bound to be ineffective. 2.30 Whatever the outcome of the ongoing organization and training study, UEB, as implied by its charter, should not be bound by civil service restrictions, and the management must make the required structural changes to deliver electricity at least cost and restore financial viability. Terms of Reference have been developed for assistance to the Government in developing a program for improving the management of UEB and selecting consultants to provide in-house expertise in implementing the program. These Terms of Reference are attached as Annex 1. The total cost of the assistance is estimated to be about US$75,000.  - 16 - III. POWBER SYSTIN LOSSES overview 3.1 The level of power system losses is measured by the difference between net generation and sales. Net generation is defined as the amount of energy sent out from the power stations, and sales as the total amount of consumption for which the consumers have been billed. 3.2 ,Losses may be divided into two groups, "technical" and "non- technical". The technical losses are those which result from the flow of current through transmission and distribution lines, power and distribution transformers, etc. The magnitude of these losses is affected by system design, including such factors as the size of, and material used for, transmission and distribution lines, the losses of transformers under no-load and full-load conditions, etc. Non-technical losses are the difference between energy sent out and sales, after taking account of technical losses in the system. 3.3 The annual losses on UEB*s system for the period 1980 to 1985 are shown in Table 3.1 below. Table 3.1: LOSSES IN THE UEB SYSTEN, 1980 TO 1985 1980 1981 1982 1983 1984 1985 Net, Gen. - GMH 631.3 511.1 552.7 548.6 611.4 623.7 To Kenya - OWH 288.8 178.5 213.3 217.5 216.1 215.0 To Uganda - GWH 342.5 332.6 339.4 331.1 395.3 408.7 UES Sales - GWH 239.6 288.1 286.0 251.3 282.8 244.1 Losses - GWH 102.9 44.5 53.4 79.8 112.5 164.6 Losses a/ - S 30.0 13.4 15.7 24.1 28.5 40,3 a/ Losses are expressed as a percentage of net output to Uganda. The losses, expressed as a percentage of the net power fed into the UEB system have been increasing steadily since 1981 and have now reached very high proportions. Total losses for 1985 were estimated at about 401 of net generation. Since technical losses are estimated to be no more than 10-15%, these losses are mainly non-technical and appear to be increasing. Non-Technical Losses 3.4 Unauthorized Connections. There apparently are large numbers of consumers who have connected themselves illegally to the power system. Although many of these intend to defraud UEB, a sizeable number  - 17 - have resorted to this action in desperation, as the only means of obtaining a supply of electricity. UBB is critically short of resources, and many long-standing applications for service have not been granted because the materials required, service wire in particular, are not in the stores. Usable material is locally available, however, and some applicants for service purchase sub-standard material themselves and arrange for their own connection to the system. The practice not only increases losses, but also endangers customers because those who arrange for their own connections do not adhere to UEB's standards, and safety considerations are normally disregarded. It is not unusual for transformer fuses to be blown or the transformer itself damaged because of improper wiring installations on these illegal systems. 3.5 The problem of unauthorized connections has reached such a great a magnitude that the only action which will be effective is a house-by-house inspection of the entire area served by UEB. The inspections will need to be carefully and conscientiously done, because some of the connections are run underground or otherwise arranged so as not to be obvious to casual inspection. The inspectors must be of the highest integrity. 3.6 These inspections should begin in the urban areas and then proceed to the rural communities. In instances where UEB does not have the material required to provide the connection and feels that it does not have the financial resources to make the purchases locally, it would be better for UEB to ask the prospective consumer for a cash contribution in an amount adequate for the purchase of the material, and then have the connection regularly installed than to run the risk of the consumer making the purchase and the arrangements for connection by himself. 3.7 An unauthorized connection to the UEB system is illegal and the law provides for punishment of those involved in such actions. UEB reports, however, that the law enforcement agencies very seldom take action on the cases of illegal connections reported to them, and for this reason prosecution of illegally connected consumers is not pursued. It has been shown in other countries that enforcement of the law is effective in controlling illegal convections and UEB may benefit by trying to influence the Government to ensure that prosecution is followed through in instances where the evidence is clear. 3.8 There is reason to believe that some of UEB's employees may be involved in providing connections to illegal consumers, or in defrauding the Board of revenue by other means. The work force at large must be made to know that the Board will not condone such action, and any employee who can be proved to have knowingly contributed to loss of revenue by the Board ought to be dismissed. 3.9 Unmetered Supplies. Since there are no single-phase meters available in the stores UEB has consented to giving some consumers unmetered supply. Under existing regulations, these consumers should receive a monthly flat rate charge, but in practice some of the  - 18 - information never reaches the billing department, and so the new consumers never become officially registered. In addition, the billing procedure'is such that an estimated bill is never sent on more than two consecutive occasions unless the district keeps making specific requests, so that even those directly connected consumers who do become officially registered will not necessarily receive a bill regularly. The house-to- house inspections recommended above also would serve to regularize those consumers who have unauthorized direct connections. UEB also should revise the procedure whereby a limit is placed on the number of estimated bills which can be issued in consecutive billing periods. 3.10 Metering Service. The rate at which meters are read is inadequate to the aeod for punctual billing. The mission noted many instances of meters in urban areas which had not been read for periods in excess of nine months. The excuse most frequently given for the poor pro4tictivity of meter readers is inadequate transportation resources, but isn urban areas this should be no great disadvantage since the meter readers will conduct most of their work on foot. The low rate at which meters are read is more probably another reflection of the overall low productivity in the Ugandan public sector. It may be a problem which UBB is not able to resolve, or even improve significantly, on its own. A possible approach to improvement may, however, be to offer cash rewards or other incentives for exceeding a certain relatively high target of meters to be read per day. Such a program could be successfully introduced only if similar incentives were also offered for increased productivity in other areas of UEB's activities. The recommendation has already been made (para. 2.18) that indices of performance be developed for a number of critical areas in UEB's operations and that all staff be paid an incentive award whenever the target inoices are exceeded. The amount of the award would be dependent on the extent by which the targets are exceeded. 3.11 Many of the meters on the UEB system are about 30 years old, and even more are unsealed. Older meters should be replaced or at least recalibrated and a meter sealing program init iated. As some of the existing sealing tools have been lost, it would be advisable to adopt a different method of meter sealing than has been employed in the past. The newer meters can probably be safely sealed without recalibration, since meter tampering is evidently not a serious problem in Uganda. 3.12 Billing System. There are grave shortcomings in the billing system, even when the computer is operating satisfactorily. Of more than 200,000 consumers on UEB's billing register, about 50% are inactive. These inactive accounts provide no revenue but slow down the billing process unnecessarily. There are also consumers who are connected to the system, but are not on the billing register. This category is not limited to the illegally-connected consumers, but includes many properly authorized connections which, for one reason or another, were never registered for billing purposes. The inspections previously recommended will help to ensure that all consumers become properly registered for billing, but will not necessarily be effective in removing inactive  - 19 - accounts. To accomplish the latter objective, it is recommended that UBB introduce: a minimum monthly bill, and that all accounts which have outstanding arrears of, sayt three months, be disconnected and removed from the billing register. 3.13 The continuous breakdown of the billing system's computer is often cited as the main reason for the virtual collapse of the billing process. Records indicate, however, that the downtime on the computer between January 1 and July 31, 1986 was only 33 hours, which suggests that jhere are some other reasons for the billing backlog. Technical Losses 3.14 Although the primary focus of attention in UEB's loss reduction program should be non-technical losses, there is also some scope for reducing technical losses. In the time available it was not possible to make the calculations necessary to develop an accurate estimate of the extent of technical losses. There nevertheless is sufficient scope for reduction of technical losses, which would not only improve voltage regulation, but would also be justified from purely economic considerations. 3.15 The power and distribution transformer capacity in Kampala is clearly inadequate to the load being supplied, and must result in losses which are higher than the optimum. 3.16 On many feeders in Kampala, UEB continues to use steel conductors for the distribution of loads amounting to several hundred kVA. There are many upderground and overhead feeders which are being loaded well above their design capacities and result not only in unsatisfactory vottage levels to the consumers, but also in frequent burning of jumpers and joints, and sometimes of the conductors themselves. 3.17 The very long secondary lines, supplied by transformers of relatively high kVA ratings, probably result in greater losses than would be experienced with shorter low voltage lines and a large number of transformers with lower average rating. A study needs to be done of UEB's distribution system, particularly for the areas in and around Kampalai (see para. 5.5). As part of the study, the losses on the existing system ought to be quantified and designs developed for modifications to the existing system as well as to its expansion to accommodate future loads to optimize reliability of supply as well as losses. Conclusions 3.18 Reduction of losses, technical and non-technical, will bring significant financial benefits to UEB and economic benefits to Uganda. The revenues now lost because of the non-technical losses would, if collected, help to alleviate the financial constraints which now inhibits  - 20 - UEB's efficient performance. Reduction of unproductive consumption in Uganda, (this includes technical losses), will make more energy available for export to Kenya. These exports are paid for promptly, and in convertible foreign exchange. In addition, suppressing the rate of increase of uneconomic demand will postpone the need for investment in new generating facilities. Loss reduction must become an important item in UEB's action program.  - 21 - IV. GRAfTION Installed Capacity 4.1 The major source of electric power supply in Uganda is the Owen Falls hydroelectric generating station located on the Victoria Nile River, about five kilometers downstream of the outflow from Lake Victoria. Construction of this station began in 1950 and it first produced power in January 1954 with two generating units, each rated at 15 MW. The installed capacity of the station was expanded by the further installation of virtually identical units, ending with the tenth, which was commissioned about 1962. The total rated capacity of the station is now 150 MW. Staffing 4.2 The Owen Falls generating station employs a total of about 130 persons covering administration, shift operations, civil engineering and electrical and mechanical maintenance. In addition, maintenance staff for the diesel generating stations are based at Owen Falls, as well as some construction and communications maintenance personnel. The latter two groups do not fall within the administrative responsibility of the Chief Generation Engineer. Operating Problems at Owen Falls 4.3 At present, three of the ten units are out of service, primarily for repairs to the alternators. The other seven units are reportedly capable of operating at their rated capacity. Since power demand in Uganda is currently less than 100 MW at peak, the remaining units in service can comfortably satisfy the maximum national demand and also fulfill the UEB's contractual obligations to provide a minimum of 30 KW to the Kenyan power system. 4.4 The output of the alternators has been limited by winding temperature considerations, as the turbines are capable of generating 18 MW under existing water-level conditions. During the rehabilitation process, all alternators will be rewound with conductors with a higher level of insulation (Class "F") to allow operation of the alternators at the proven 18 MW capacity of turbines. The alternators then will be rated at 23 MVA, instead of the current 16.7 MVA. The maximum output of the station then will be increased from 150 to 180 MW. 4.5 Over the years of operation, some cracks have developed in the powerhouse and the dam. Although they do not immediately endanger the safety or operational reliability of the installation, the cracks need to be repaired to prevent further deterioration. UEB's consulting engineers have dev'loped a program of rehabilitation for the dam and the generating plant, which includes the repair of defects in the civil works and refurbishing of electro-mechanical equipment.  - 22 - Other Generation 4.6 The transmission and distribution system emanating from Owen Falls does not cover the entire country, and there are a number of "island" systems serving certain rural communities. These island systems obtain power mainly from high-speed diesel generator sets, except for two 250 kW hydroelectric units installed near Kabale in the southwest along with four diesel units rated between 210 and 250 kW each. There are no other hydroelectric units on the public power system. There is, however, at least one significant private installation of two units rated at 2,500 kW each, built to provide power to the copper mining facilities at Kilembe in West Uganda, but these units currently are not operating. 4.7 In addition to the isolated system supplying Kabale and its environs, six other isolated networks are powered by diesel generators. The available capacity from these installations, as well as the maximum recorded demand, are shown in Table 4.1 below. Table 4.1: ISOLATED DIESEL INSTALLATIONS No, of Sets Available Maximum Recorded Station Available Output Demand (kW) (kW) Arua 3 665 1,200 Kapchorwa 1 150 150 Kitgum 1 110 SO0 loroto 2 375 50D MOyo 1 65 350 Rukungiri 1 210 600 4.8 Table 4.1 above indicates that none of the isolated systems is capable of meeting historical maximum demand. The reasons given by UEB for the restricted availability of the units include a lack of spare parts and inadequate transportation facilities, thereby resulting in a lack of proper maintenance. 4.9 The available records do not allow for accurate calculation of the annual energy generated by the diesel units nor for the determination of the specific fuel consumption of the individual engines. The percentage of energy generated from the diesels is, however, less than 1X of UEB's total annual generation.  - 23 - Generation Expansion Planning 4.10 A power system development study has been prepared for UEB by the consultants, Sir Alexander Gibb and Partners and Kennedy and Donkin. 5/ The forecast for the base case scenario is given in Table 4.2. Table 4.2: UEB LOAD FORECAST(1985 to 2000) (MW) 1985 1990 1995 2000 Uganda 81 113 156 199 Exports 31 31 41 41 Total 112 144 197 240 Source: Power Development Study of the Uganda Electricity System, Draft Final Report; Sir Alexander Gibb and Partners, Kennedy and Donkin, March, 1986, 4.11 The consultants report considered several new hydro develop- ments and concluded that the least-cost solution to meeting increased power demand would be to construct a 180 MW station (in units of 30 MW) at Bujagali, about 7 kilometers downstream of the existing Owe' Falls Station at Bujagali. The estimated cost of the project is 135 million pounds sterling (1985 value). 4.12 The base case of study finds that by 1992 the capacity of Owen Falls will be *nsufficient to meet Ugandan demand and fulfill contractual obligations for the supply of at least 30 MW to Kenya. Even with a more pessimistic forecast additional capacity will be required in 1994. Generally, the minimum construction period for the first phase of any hydroelectric development is about four years. Additional time will be required to secure project financing, prepare the engineering design work, and negotiate contracts. Thus there is a considerable amount of urgency to prepare another hydro project. 4.13 Much of the historic increases in consumption on which demand projections are based result from unauthorized or other unmetered connec- tions to the UEB system. The expected demands may therefore not be realized if UEB were to successfully implement programs to control 5/ Power Development Study of the Uganda Electricity System, Draft Finat Report, Sir Alexander Gibb and Partners, Kennedy and Donkin, March, 1986.  - 24 - unmetered cohsumption and reduce accounts receivable. However, if the forecast. aro realistic and new capacity is required in the near future, the economics of increasing the present generating capacity at Owen Falls needs to be re-examined as an alternative to a completely new station. The Lake Vidtoria hydrological data is subject to interpretations other than those presented in the study currently being used as the basis for expansion plans. In addition, that study attributes no benefits to secondary energy available at the Owen Falls site. It does not evaluate the cost of alternative sources of generation, (e.g. gas turbines, imports from neighbouring countries, etc.), which may be required to provide the shortfall in capacity which the study suggests would be experienced if the Owen Falls site were further developed. The mission recommends that tUEB undertake further evaluation of the Owen Falls extension option before proceeding with engineering work at Bujagali.  Fig.2: KAMPALA AREA TRANSMISSION AND SUBTRANSMISSION SYSTEM 4ttKV ftK + + ~~~~~~KAMPALA NORTH TO 1KNEr 1 > _ 32KV TO OWEN FALLS ~~OtH 132KV TO SOMBO T - 3~ ~~33KV n n n~~~~~~~~~~~~~~~~~~~~~~~~~~eed _ _ T ~~~~~~~~~~~~~~~LINE No.t1 + LU LnG s -LINE No.2 c{I _~~~~~~~~~~~a thspon 66AKV _OI TO OWEN FALLS 11KVl IIKV _<. atJEENSWAY 33KV _ 3 MITYANA TE E \ \ ~~~~~~~~~~~~~~~~~~Legend: l l ~~~~~~~~~~~~~~~~~(ID Transformner [ ] [ 3 & lil JF ~~~~~~~~~~~~~~~~~~~Lines not connected 33KV PA-K MP LA SCXUTH 33 KV MASAKA ENTEBBE ENTEBBE World Bank-31tt85:1  - 26 - V. TRANSMISSION AND DISTRIBUTION Overview 5.1 The transmission system consists of 132, 66 and 33 kV lines emanating from Owen Falls Generating station, as shown in the accompany- ing map IBRD 16933R1. The 33 kV sub-transmission system linking the main Kampala substations, Kampala North and Kampala South (see Figure 2. p.25), is limited in capacity and firm supply is no longer available in the event of a line outage on this system. 5.2 The 33/11 kV substations in the Kampala area, with the exception of the Lugogo Substation, have sufficient firm transformer capacity to meet current loads. One transformer is presently out of service at Lugogo and in the event that the remaining unit fails, a long- term outage in the substation's service area would result. 5.3 Numerous voltage problems, high losses, thermal overloads and outages inhibit the efficient operation of the 11 kV and 400 V distribution network in the Kampala area. Due to a lack of replacement transformers, many areas of Kampala had been without power for several months because of transformer failures. 5.4 The immediate problems caused by a lack of spare parts and equipment will be eased once emergency materials become available through a current ODA grant. Additional electrical equipment, including substation power transformers, 33 and 11 kV switchgear and underground and overhead line materials will be required by UEB in order to upgrade the system capacity in the Kampala area to meet short-term needs and further improve system reliability. The installed cost of the equipment including foreign and local components is estimated at US$1.5 million. It was proposed to fund this as part of the US$29 million IDA Power II Credit. UEB also can reduce outages substantially by a concerted effort in the areas of preventive maintenance and good operating practices. 5.5 A comprehensive planning study of the Kampala area will be required to update current system information and define improvement and expansion programs for the sub-transmission, primary distribution and secondary distribution systems. This study should cover a 10-year period of system forecasting and development. Terms of reference for this study are included in this report under Annex 3. The estimated cost of the study including professional services, travel and subsistence and equipment supply is US$246,000. 5.6 Current deficiencies of the Kampala area transmission and distribution systems and recommendations for short-term and long-term solutions are outlined below.  - 27 - Existing System Description 5.7. The transmission network supplying the Kampala, central and western regions consists of two 132 kV circuits and one 66 kV circuit. The 132 kV supply is carried on a double circuit, steel tower line and the 66 kV supply is carried on a single circuit steel tower line. Under normal operating conditions, power is transmitted via the 132 kV lines only and the 66 kV line is utilized as a back-up supply in the event of an outage on the 132 kV system. 5.8 The Kampala District sub-transmission system consists of 33 kV lines supplying Queensway and Lugogo 33-11 kV substations and is shown on Figure 2, p.25. At the Kampala North Station, there is also a direct 132-11 kV transformation to supply 11 kV primary distribution to loads in the northern part of Kampala District. 5.9 The primary distribution system serving the Kampala District is operated at 11 kV and can be described as an "ungrounded-delta" system. There is an extensive network of underground 11 kV cables in the downtown area of Kampala which has been in place for as long as 30 years. The other areas of Kampala are served by overhead 11 kV wood pole lines, the majority of which are three-phase. 5.10 The low-voltage distribution system consists largely of 400/230 V three-phase lines which are installed underground in the down- town area of Kampala and overhead in the surrounding urban area. Distribution transformers consist of single phase units ranging in size from 5 kVA to 25 kVA and three phase units from 50 kVA to 1,250 kVA. In the Kampala District, a total of 3,940 kVA consist of single-phase and 91,000 kVA of three-phase distribution transformer capacity is installed. The distribution transformers feed relatively long low-voltage lines in the residential areas. The average number of customers connected to distribution transformers in the residential areas is summarized as follows: Table 5.1: AVERAGE NUMBER OF CUSTOMERS CONNECTED TO TRANSFORMERS Transformer Size Average Number of Customers 5 kVa 10 (in rural Areas) 15 kVa 10 (in urban areas) 25 kVa 20 50 kVa 30 100 kVa 50 200 kVa 100  - 28 - Operating Problems and Deficiencies Transmission 5.11 The 132 kV and 66 kV transmission lines supplying the Kampala area from the Owen Falls Generating Station have sufficient capacity to supply current power demands under the contingency conditions of a single 132 kV circuit outage. 5.12 A load flow study completed in June 1984 by UEB's consultants, Kennedy and Donkin, determined that the firm capacity of the double circuit 132 kV line to the Kampala North Substation and the single circuit 66 kV line to the Lugogo Substation totals 75 MVA. 6/ This firm capacity is established based on the loss of a single 132 kV circuit from Owen Falls to Kampala North. The remaining 132 kV circuit, as stated in the study, is capable of carrying 60 MVA within acceptable voltage limits and the 66 kV circuit to Lugogo has a capacity of 15 MVA. 5.13 Peak load readings taken by UEB at the time of the mission's visit showed that the 132 kV circuits to the Kampala North station are presently carrying a combined load of 51.2 KVA. Under normal operating conditions, power is not transmitted to the Kampala load area via the 66 kV line to Lugogo Station. 5.14 A more realistic firm capacity of this transmission system, should probably consider the loss of both 132 kV circuits, as both circuits share the same towers. Structural failure of a tower or a major electrical fault involving both 132 kV circuits would result in a lengthy outage in the Kampala, central and western regions. Substantial peak load shedding would be required to limit the combined maximum demand in these areas to 15 MVA, or less than one-third of the present load. Sub-transmission System 5.15 The Kampala North to Kampala South 33 KV sub-transmission system is presently being operated as a closed loop system. A more preferable arrangement from the standpoint of reliability and system protection would be to operate the system radially with the bus tie breaker at the Kampala South station normally open. However, the loads on both sides of the bus are not balanced because the two supply lines to the QueeAsway Substation, as well as the line to the Entebbe Substation, are all on the same side of the 33 kV bus. Their total combined load of 20.2 NVA cannot be supplied solely by the single Lugogo to Kampala South 33 kV overhead line. 6/ "Rehabilitation and Uprating of the Uganda Electricity System, Volume 3--Transmission Distribution and Communications."  - 29 - 5.16 The thermal capacity of this 33 kV line (125 mm2 ACSR) 7/ is limited to 16 NVA. The bus load imbalance necessitates supplying the Kampala South substation with the two 33kV circuits from Kampala North and Lugogo operated in parallel, which substantially increases fault levels at the Kampala South bus. In the event of a fault occurring on either of the supply lines to the Kampala South bus, both supply lines would have to be taken out of service to clear the fault. To avoid this, there should be a more equitable load balance on the Kampala South bus section, allowing each section of the bus to be adequately supplied by one of the 33 kV lines. 5.17 Upon completion of load balancing on the Kampala South 33 kV bus sections, the sub-transmission system interconnecting Kampala North and Kampala South Stations would have adequate capacity to meet present loads. In the event of a single 33 kV line outage, however, insufficient firm capacity is available. The total peak load on the Kampala South 33 kV bus is currently 21.6 MVA. Each 33 kV line has a capacity of only 16 NVA. Therefore, in the event of a single 33 kV line outage, substantial load shedding would be necessary in the Kampala load area to reduce the 33 kV bus load. It is anticipated that voltages below normal operating limits also would occur on the Kampala South 33 kV bus under these single contingency outage conditions. 5.18 The two 33 kV overhead lines supplying Queensway Substation from Kampala South station have sufficient capacity together to carry the 15.6 MVA Queensway peak load under normal operating conditions. However, the capacity of each line is limited to 10 MVA. Thus, firm capacity is not available to supply Queensway Substation in the event of a single 33 kV circuit outage. 5.19 The 33 kV oil circuit breakers at Lugogo and Kampala North Stations are obsolete. The manufacturer, Reyrolle, advised URB several years ago that spare parts no longer would be available for these breakers. 5.20 Outage statistics for the Kampala area's 33 kV system were analyzed by the mission covering the periods April 1986 to July 1986 and September/October 1982. The following tabulation provides a comparative summary of the average load loss per month for 1982 and 1986. As shown in the table, there has been a substantial increase in average load loss per month in all categories. The increase is attributed mainly to the reduction in UEB's maintenance activities. Tree trimming, insulator cleaning, and pole replacements are not *.ncluded as part of a preventive maintenance program. 7/ Aluminium conductor, steel reinforced (ASCR).  - 30 - Table 5.2: AVERAGE LOAD LOSS PER MONTH BY TYPE OF OUTAGE (1982-86) KAMPALA 33kV SYSTEM Average Load Loss Percent of Total Outage Type Per Month (MWh) Load Loss 1982 1986 1982 1986 Transient Faults 7.5 33.1 75% 67% - Tree Contact - Insulator Flashover - Lightning Broken Conductors 1.0 6.3 10% 13% - Conductor Burndown Connector Fallure 0.5 2.0 5% 4% - Jumper Burndown Miscellaneous 1.0 8.3 10% 16% - Cause not defined - Broken poles - Etc. 11 kV Substations and Primary Distribution System 5.21 The Kampala area 11 kV substations, consisting of Kampala North, Queensway and Lugogo, have sufficient capacity to meet current peak demands under normal operating conditions. In the event of a single transformer outage at Kampala North and Queensway, there is sufficient firm supply to meet peak loads. At the Lugogo station, however, Transformer No. 3 failed due to an internal fault and can no longer be operated.:. The remaining 10/14 MVA Transformer No. 2 is carrying the entire station load of 11.6 MVA. As UEB has no spare 33/11 kV trans- formers available, a loss of the remaining Lugogo transformer would result in a long-term outage in this station's service area. Under present system conditions, only 5 MVA of the Lugogo load could be transferred to adjacent substations through feeder ties. 5.22 The mission visited the three 11 kV substations within the Kampala area to assess their general operating conditions and observed inadequacies in preventive maintenance and repair work. In particular, the following deficiencies were noted: (a) transformer cooling systems and controls not functioning properly; (b) silica gel in transformer vents, indicating high moisture content and needing replacement;  - 31 - (c) insulators covered by dust; (d) outdoor equipment ground connections missing or faulty; (e) 11 KV feeder-breaker instrumentation not working at Kampala North Station; (f) doors of outdoor enclosures housing control equipment left open at Kampala North Station; and (g) need to replace oil in power circuit breakers. 5.23 During the mission's visit, peak load readings were taken by UEB on all 11 kV substation feeders. The following feeders were found to have loads which have reached or exceeded the conductor thermal capacity. Load Feeder (Percent of Capacity) Kampala North K1572 108% Kampala North K1570 92% Lugogo K1274 96% Queensway K1440 104% Queensway K151S 196% 5.24 A number of oil switches at the Kitante 11 kV switching point have been out of service for some time. UEB has experienced difficulty in maintaining this switchgear due to its age and unavailability of spare parts. This switching point is a key element in the 11 kV distribution scheme for the downtown Kampala area and provides feeder ties with Queensway, Lugogo and Kampala North Stations. Its present unreliable service greatly reduces UEB's operating and switching capabilities. 5.25 The 11 kV primary cable on UEB'L system is the paper insulated lead covered (PILC) type. Terminations are the liquid compound type. Both the cables and terminations have been in service for 20 to 30 years and can be considered to have reached the end of their useful life. A number of cables have failed due to insulation breakdown and deterior- ation. Cables have also been damaged by dig-ins during the road and water service construction activities presently underway in Kampala. UEB has had difficulty in locating and repairing cable faults because their cable fault location equipment is inoperative. 5.26 The mission reviewed outage statistics, covering the periods April 1986 to July 1986 and September/October 1982, for the Kampala area's 11 kV primary feeders. The following tabulation provides a comparative summary of the average load loss per month for 1982 and 1986.  - 32 - Table 5.3: AVERAGE LOAD LOSS PER MONTH BY TYPE OF OUTAGE (1982-86) KAMPALA 11kV FEEDERS Average Load Loss Percent of Total Outage Type Per Month (MWh) Load Loss 1982 1986 1982 1986 Transient Faults 15.0 72.8 50 37 - Tree Oontact - Insulator Flashover - Lightning Broken Conductor 8.0 40.3 27 20 - Conductor Burndown Faulty Distribution 2.5 39.4 8 20 Transformers Underground Cable Faults 1.0 10.4 3 5 Connector Failure 2.5 20.9 9 10 Miscellaneous - Cause Not Identified 1.0 15.2 3 8 - Broken Poles - Etc. 5.27 The number of transient faults has increased substantially, reflecting UEB's reduced activity in tree trimming along line right-of- ways and preventive maintenance such as insulator cleaning. The duration of outages caused by transient faults has also increased on some 11 kV feeders. The reclosing relays or reclosing mechanisms on the breakers of these lines are no longer functioning and transient faults cannot be cleared automatically through breaker reclose operations. A transient fault trips the feeder breaker and it stays open until UEB operating personnel travel to the substation and reclose the breaker manually. 5.28 The increase in outages caused by conductor breakage or burndown reflects the loading conditions on the 11 kV feeders. Under emergency operating conditions, UEB has loaded some circuits to levels beyond the thermal rating of the overhead conductors. The transfer of loads to other circuits through ties has not been possible due to inoperative switchgear. 5.29 Outages on the 11 kV feeders caused by distribution transformer failures have also increased sharply and this type of load loss has taken a larger proportion of the total load lost due to system faults. UEB presently has a large number of distribution transformers connected  - 33 - directly to the 11 kV lines without primary fuse protection. Supplies of fuse holders and fuse refill units have diminished. Failures of transformers directly connected in this manner have caused the 11 kV feeder breaker at the substation to trip out, resulting in the loss of the entire feeder load. 5.30 Outages caused by the failure of overhead line connectors have increased as well. This increase can be attributed mainly to UEB's use of bolted type connectors instead of the compression type. The lack of proper connectors for connecting aluminum and copper conductors have resulted in UEB's use of unsuitable connectors for this type of application. This has resulted in galvanic action, and connector over- heating and failure. 5.31 There are serious voltage problems and high losses on many 11 kV feeders in the Kampala area. During the mission's visit, USB selected four typical problem feeders for detailed study by the mission to determine voltage profiles and losses. Computer calculations were completed using peak load conditions. The maximum feeder voltage drops through the entire feeder lengths were between 10 and 11 and total feeder losses were calculated at 42 to 62 of feeder kW loading. Peak loads on these feeders were approaching the maximum thermal limits of the conductor. The selected feeders have several overhead line segments using all steel conductors which contribute greatly to the high voltage drop and losses experienced. As a general rule, primary distribution feeders economically designed and operated to reduce losses would show maximum voltage drops of 32 to 4%. Distribution Transformers and Low Voltage System 5.32 Many areas of Kampala are presently experiencing frequent poewer outages on the low-voltage system because distribution transformers have failed and replacement transformers are no longer available from URB's stock. Some of these areas have been without power for three to four months. A total of 71 units representing 7,000 kVA of transformer capacity are now permanently out of service. The Kampala District system normally has a total installed distribution transformer capacity of 94,900 kVA. UEB has attributed these transformer failures to several causes, mainly a lack of maintenance and lack of proper primary for secondary fusing, and these are summarized and ranked in Table 5.4.  - 34 - Table 5.4: CAUSES OF DISTRIBUTION TRANSFORMER FAILURES KAMPALA Cause of Transformer Fallure S of Total Failed Transformers Lack of proper primary or 50 secondary fusing Lack of maintenance, i.e.: 30 low olI levels, cracked bushings Lightning arrester failure 5 Internal insulation failure 5 due to age Damage due to sabotage, war 5 Premature failure due to S manufacturing defect Source: UEB. 5.33 UEB stated that its response time to low-voltage system outages has in some occasions been very slow due to the large number of coincidental outages occurring. Time lags of two to three days have occurred from the time of a transformer outage to the time of power restoration. On many occasions of lengthy outages, customers have taken the initiative to restore power by rewiring blown fuses with links of solid wire. In some cases where the transformer fuses blew because of overload conditions, this fuse re-wiring practice has resulted in subsequent burnout of the transformer. 5.34 UEB's secondary distribution system in the Kampala area consists of long runs of low-voltage conductors supplied from large three-phase transformers with ratings of 100 to 500 KVA. This type of system has inherently high losses and under high loading conditions customer service voltages are reduced to unacceptable levels. Large load inbalances between phases on the low-voltage system are a common occurrence. This condition is also contributing to high losses. 5.35 UEB maintains records of low-voltage system outages by catego- rizing the fault and estimating the outage duration. No statistics are available indicating load loss in kWh. Typical records of outages in the Kampala area covering a period of nine days were reviewed by the mission. The results of this analysis are summarized in the following table.  - 35 - Table 5.5: ANALYSIS OF LOW-VOLTAGE SYSTEM OUTAGES KAMPALA Accumulated Outage Outage Type Duration (Hours) a/ Blown transformer 296 LV fuse-cause unknown Conductor-to-conductor 80 contact Transformer overload 285 Conductor burndown 215 LV Cable Fault 294 Connector Failure 36 Total of all Outage Categories 1,206 a/ Accumulated outage duration Is total for 9-day period studied. Assistance from the British Overseas Development Agency (ODA) 5.36 Improved housekeeping measures combined with new equipment to be procured through a grant from British ODA should put UEB in a position to further improve service and restore power to areas affected by frequent outages. Distribution transformers and fuses are the materials most urgently needed to alleviate the current problems in the Kampala district. Distribution transformers totalling 26,300 kVA in capacity will be purchased under the ODA grant. This should be more than adequate to replace the 7,000 kVA of transformer capacity presently out of service. The balance of the shipment will be used to meet short-term transformer requirements for maintenance and normal load growth. A list of equipment and material to be supplied under the ODA emergency grant is provided in Annex 2. To assist UEB in the installation of the emergency equipment, ODA has agreed to provide two line construction trucks and the services of two lineman-trainers. Additional Equipment Proposed by Kennedy and Donkin 5.37 Kennedy and Donkin, consultants to UEB, have prepared a report on Rehabilitation and Uprating of the Uganda Electricity System. In addition to the rehabilitation of the Kampala distribution system through utilization of the ODA supplied materials, the consultants have indicated a need for additional equipment to meet UEB's immediate equipment needs and improve reliability of supply. This equipment includes the followings  - 36 - (a) Addition of a 10/14 MVA 33-11 kV transformer at Lugogo Substation to replace the defective unit. (b) Replacement of 14 obsolete 33 kV outdoor circuit breakers at the Lugogo and Kampala North Substations. (c) A new 66-11 kV substation at the Port Bell (southeast of Kampala) to be supplied by a spur from the Owen Falls-Lugogo 66 kV line. The project would include a 5 MVA transformEr, protective equipment, and extension of the 11 kV distribution system. (d) Replacement of obsolete 11 kV switchgear at the Kitante switching point in Kampala. (e) Reinforcement of Kampala's 33 kV sub-transmision ring including: gi) Reconductoring the existinj 33 kV lines from Kampala North to Lugogo. sii) Construction of a second 33 kV line from Kampala North to Kampala South. (iii) Construction of a second 33 kV line from Lugogo to Kampala South. (iv) Protective relaying for above new lines listed above. (f) construction of a 3 km or longer 11 kV overhead line to serve the Ndeeba load area from Queensway Station. This line is required to provide a more direct supply to the area, now served at 400 V. (g) Replacement of 35 km of aged and defective PILC (paper insulated, lead covered) 11 kV cable and associated cable terminations. th) Replacement of forty obsolete and faulty 11 kV Ring Main Units. Ci) Replacement of 50 km of aged LV armoured cable. (j) Replacement of defective and damaged LV feeder pillars. Recommendations 5.38 In order to increase the reliability and efficiency of the existing transmission/distribution system and identify a future develop- ment program, UEB should: (i) implement improved operating procedures and preventive maintenance practices as outlined in Table 5.6 page 38 and (ii) undertake a system planning study for the Kampala area. The Kampala  - 37 - Area system planning study should give particular attention to the following considerations: (a) Peak loads of many 11 kV feeders approaching or exceeding thermal capacity. (b) Low voltages and high losses experienced on many 11 kV feaders and lv distribution lines. (c) Illegal connections and consumers obtaining free electric service due to meter reading or billing deficiencies, contributing factors to UEB's high load growth. (d) Distribution system design standards requiring evaluation based on cost effectiveness and present standards for distribution transformer and LV system installations require updating. (e) Establishment of a new 132-33 kV supply at or near the Kampala South station as an alternative to reinforcing the existing 33 kV supply lines from Kampala North to Kampala South stations. (f) Existing 33 kV lines supplying Queensway Substation from Kampala South requiring uprating to provide firm supply capacity. 5.39 During the mission's visit, UEB engineering staff agreed to the need for a detailed distribution system planning study for the Kampala district to consider all the alternatives for rehabilitation and establish a clear direction for future system development. Consequently UEB proposed that the 33 kV Ring reinforcement project be deferred and that the extent of underground cable replacement be reduced until a planning study is completed. The mission concurs with these views and recommends deferring the installation of the new Port Bell station as well, particularly in light of the need to confirm the feasibility of uprating the existing 66 kV Owen Falls-Lugogo transmission line to 132 kV operation, as discussed in para. 5.41.  - 38 - Table S.6: RE iENDATIONS FOR IWPROVED DISTRIBUTION SYSTEM RELIABILITY Monitorinag and Operating Procedures 1. UEB's engineers should continue to investigate the various alternatives discussed to transfer 33 kV lInes at the Kampala South Station bus In order to allow the 33 kV ring to be normally operated with the bus tie breaker open at Kampala South. 2. The substation transformer cooling systems should be checked for proper operation. Where the controls for the fans, (and oil pumps, where Installed), are Inoperative, these controls should be Jumpered to keep the cooling devices In continuous operation until spare parts are available for proper repair of the system. 3. All maximum Indications on oil and winding temperatures of substation transformers should be reset, and regularly checked and recorded, at least once wokly. 4. All protective relays should be checked for proper operation. These should Include, In particular, reclosing relays and transformer temperature relays. 5. Investigate ways of reducing the demand on feeders which are loaded close to their capacity: Nos. K1570 and K1572 out of the Kampala North substation, No. K1274 out of the Lugogo substation, and Nos. K1440 and K1515 out of the Queensway substation. 6. Connect switch operating handles in substations directly to the ground grid for the safety of operators. 7. Inspect lines after transient faults to attempt to determine the cause of the fault. 8. Use proper connectors at Junctions of aluminum and copper conductors. 9. Institute a program to regularly check the peak loadings on distribution trans- formers. This program may help to minimize further transformer burnouts before the arrival of replacement units and would be a useful Indication of which trans- formers can be Interchanged to relieve overloading at any specific locations. 10. List distributlon transformers which are not now fused on the primary and/or secondary terminals so that Installation of these fuses can be expedited once replacements are available. Urgent priority Is to be given to Installation of primary fuses where such are not now in place. 11. Check the load distrlbution between the phases of low-voltage lines and, where required, transfer service to achieve acceptably balanced phase currents. 12. Improve response to low-voltage system outages In order to reduce the Incidence of customers' re-energizing transformers to restore power.  - 39 - Table 5.6: (Continued) Maintenance Procedures 1. Clean insulators In substations. 2. Replace the silica-gel In the breathers of most substation transformers. 3. Replace the oil In oil-type circuit breakers, which have been operating frequently and check the main contacts In these breakers for evidence of burning. 4. Close doors on all outdoor electrical cabinets and weatherproof them, 5. Inspect ground connections on all outdoor substation equipment and repair If faulty. 6. Repair or replace the underground cable fault locator. 7. Replace ammeters for the Entebbe Line No. 1 and the Mltyana line, (at Kampala South substation). 5.40 UBB also has proposed a reduction in the Lugogo and Kampala North 33 kV breaker replacement program. It was agreed to replace only four units at these stations and to utilize the salvaged breakers as a source of spare parts for the remaining Reytolle breakers. It is recommended that the proposal to replace the defective 33-11 kV 10/14 MVA transformer at Lugogo with a unit of identical rating be given further consideration. The transformation capacity at this station should be uprated at this time to meet future loads beyond its present two-bank capacity of 28 MVA. It may therefore be more appropriate to salvage the remaining 10/14 MVA transformer, allocate it as a system spare and purchase two new 33-11 kV transformers with a capacity of 20 to 25 MVA each. 5.41 It is recommended that the feasibility of increasing the operating voltage of the Owen Falls/Lugogo transmission line from 66 to 132 kV be re-examined. After preliminary investigations Kennedy and Donkin advised against upgrading this line because of conductor clearance limitations. However, given the potential of this line to increase the firm supply to the Kampala area if operated at a higher voltage, a more detailed study ought to be undertaken before a final decision is made. 5.42 The proposed improvements listed in Table 5.7, page 40 should be implemented to satisfy the short-term requirements of the Kampala system rehabilitation, until such time as a planning study is completed to define long-term system development. It is suggested that this rehabilitation work be funded through the existing IDA Power II Credit.  - 40 - Table 5.7. PROPOSED SHORT-TERM IMPROVEMENTS TO THE TRANSMISSIONi/DISTRIBUTION SYSTEM Estimated Cost Item Foreign Local Total ----- -(USS '000's )-- --- Two (2) 25 MVA, 33-11 kV 350.0 60.0 410.0 transformers for Lugogo Substation (KVA to be confirmed by UEB) Four (4) 33 kV outdoor 70.0 8.0 78.0 power circuit breakers (Kampala North and Lugago replacements) One (1) 11 kV Switchgear 33.0 3.6 36.6 assembly (Kitanto switch- gear replacement) 3 km O/H 11kV line Queeonsway 3.9 20.3 24.2 to Ndeeba 7.5 km 11 kV Power cable 120,0 21.9 141.9 (replacement for faulted cable) Ten (10) Ring main units 45.0 4.9 49.9 Thirty (30) Power Cable 4.5 1.0 5.5 terminations 15 km low voltage cable 267.3 48.8 316.1 (replacement for faulted cable) 110 units Street Feeder 400.5 43.6 444.1 pillars - various configurations TOTALS 1294.2 212.1 1506.3  - 41 - 5.43 Pinally, it is . proposed that specialists be engaged to undertake the planning study and be required to provide training to UEB's engineering staff in the application of computerized planning techniques. The cost of this study is estimated at US$246,000 and its Terms of Reference are attached as Annex 3.  Annex 1 - 42 - Page l of 3 TERMS OP RREFERCE FORt ASSISTANCE TO THE OM OF UGANDA IN DEVELOPING A MAMUa GENT IMPRVXNT3 PROGAM FOR THE UGANDA ELECTRICITY BOARD Summary of Requirements The Government of Uganda is soliciting proposals for the development of a program for improving the management of the Uganda Electricity Board (UEB). The objective of this improvement program is to enhance the management capability of UEB, through more efficient operating procedures, equipment, and training to provide high-quality service at least cost. It is expected that the program, once developed, will be implemented with the assistance of selected expatriate specialists, filling line positions in UEB for a period of three to five years, who will train staff selected by UEB, in consultation with the specialists, to assume their positions once the term of the management contract is completed. Background WEB is a statutory government corporation responsible for the generation, transmission, and distribution of electricity in Uganda. During the recent past, its finances and service reliability have deteriorated to the point where, if action is not taken, the utility will no longer be able to operate. To arrest this trend, a joint UNDP/World Bank loss reduction mission has recommended the restructuring of the utility. Scope of Work The assistance to UEB in developing a management improvement program would consist of the services of three specialists: a management specialist, an engineer, and a financial analyst. Their scope of work would include, but not necessarily be limited to, the following tasks: (a) Discussions with the Government of Uganda and agreement on acceptable terms and conditions for the service of expatriate personnel with UEB, including the scope of services, duration of the assistance, composition of the management team, line authority, compensation. Preparation of Terms of Reference for the provision of these services.  Annex 1 - 43 - Page 2 of 3 (b) Development of standards to be used in evaluating proposals for provision of the services, and those by which the performance of any contracted organization or personnel may be assessed. (c) Preparation of a listing of organizations qualified to offer the services required. Selection of organizations will be based primarily on their having successfully provided similiar services to one or more developing countries in the past. (d) Preparation and issuances of letters of invitation to the selected organizations for submission of proposals to provide the services. (e) Assistance to the Government of Uganda in the evraluation of proposals received, negotiations with the more highly evaluated contenders and selection of the most suitable organization. Estimated Costs The cost of the activities outlined above is estimated to be US$75,000 as shown in Table 1. Table 1: ESTIMATE OF OOSTS USS Travel a/ 21,000 Subsistence bl 6,000 Consultants' services c/ 25,000 ESMAP staff d/ 16,000 Contingencies e/ 7,0Q0 Total 75,000 a/ Based on 6 U.S.-Uganda round trips at $3,5Q0 each. b/ Based on 50 man-days at $120 per unit. c EBased on 10 man-weeks at 52,500 per unit. d/ Based on 16 man-weeks at 51,000 per unit. e/ Calculated at approximately 10% of preceding subtotal. Division of Labor and Responsibilities The Consultants will be fully responsible for managing the identification, negotiation, and finalization of a contract between the Government of Uganda and a competent organization to provide the services required. The Government of Uganda will provide: (a) access to documents and data; (b) counterpart staff as required; (c) office space; and (d) secretarial services.  - 44 -Annex Page 3 of 3 Guidelines for the Proposal The proposal of the Consultants should provide comprehensive details of the following: (a) a work plan in accordance with these Terms of Reference; (b) the nature of the organization and previous experience in related work in other countries; (c) curricula vitae of staff to be assigned for the work; and (d) a preliminary estimation of hours per person required for the work. Structure and Schedule of Payments The structure and schedule of payment for services rendered during the contract period will be negotiated with the Government of Uganda. These payments will be based on a fixed fees plus bonuses tied to performance targets.  Annex 2 - 45 - Page 1 of 2 ODA EMERGENCY MATERIALS The equipment and materials listed below were to be supplied to UEB through a grant from ODA. Shipments were scheduled for the periods indicated and the total cost of all the materials excluding shipping and freight is estimated to be US$1,600,000. Quantity Description Shipment Schedule 10 500 kVA, llkV-433V, 3-phase 09/29/86 to distribution transformer 12/05/86 20 315 kVA, llkV-433V, 3-phase " distribution transformers " 30 200 kVA# llkV-433V, 3-phase " distribution transformers 50 100 kVA, llkV-433V, 3-phase s n distribution transformers " 50 50 kVAp llkV-433V, 3-phase distribution transformers " 60 25 kVA, llkV-250V, 10 " " distribution transformers " 3,000 Low voltage fuses various ratings 10/30/86 180 33 kV fuses and various 08/22/86 to quantities of fuse parts 08/29/86 360 llkV fuses and various 08/22/86 to quantities of fuse parts 08/29/86 300 10kV surge arresters 09/24/86 60 30kV surge arrester 09/24/86 10,740 Low voltage house service fuses, 10/03/86 to various ratings 11/28/86 20 Feeder pillars including spares 09/15/86 30 KM 4.125 in2 ACSR conductor 09/19/86 20 KM 0.05 in2 ACSR conductor 09/19/86 50 KM 0.023 in2 ACSR conductor 09/19/86 50 KM 16mm2, 600/1000V single core, PVC cable 11/10/86  Annex 2 - 46 - Page 2 of 2 u!antity Description Shipment Schedule 10KM 35mm2, 600/1000V 4 core, PVC cable 10/27/86 5KM 95mm2, 600/1000V 10/27/86 4 core, PVC cable 2KM 240mm2, 600/1000V 10/27/86 4 core, PVC cable Miscellaneous LV 08/26/86 to cable terminations 09/12/86 and connectors 5000 kWh meters, 1-phase, 08/29/86 to 240V 10/10/86 200 kWh meters, 3-phase, 08/29/86 to 433V 10/10/86 20 kVAh meters, 3-phase, 3W 08/29/86 to CT Type 10/10/86 150 kWh meters, 3-pha3e 4W 08/29/86 to 10/10/86 150 kVAh meters, 3-phase 4W 08/29/86 to CT type 10/10/86 20 Radio equipment 09/19/86 to mobile transceivers 10/10/86 10 Radio equipment 09/19/86 to fixed station transceivers 10/10/86 Various spare parts 10/10/86 for radio equipment 21 sets Tripping batteries and 09/18/86 to chargers 10/02/86 Various tools, electrical 08/18/86 to instruments and maintenance supplies 09/26/86 Various distribution and 09/26/86 substation spare parts 1,375,000 Pre-printed statements for customer billing 300,000 Pre-printed cash receipts  Annex 3 -47- 'aa1of 5 TEM OF REFENCE SYSTEM PLAINIC STUID Summary of Requirements The Uganda Electricity Board (UEB) is solic