MCC Sustainability Activity

Sierra Leone Compact - Power Sector Reform Project - Sustainability Activity: The Financial Sustainability Activity addresses the remaining unreconciled accounting and.ownership of assets and liabilities between EGTC and EDSA, which were created in connection with the unbundling of the vertically integrated National Power Authority.

The reconciliation of such accounting under this Activity shall clearly separate the generation and transmission business lines at EGTC (as required by ECOWAS regulations), update the power purchase agreement between EGTC and EDSA, address the need for continued tariff and subsidy reform, and support improved regulator performance.

This Activity includes two sub-activities, one addressing sector accounting, and the other addressing tariffs and overall Electricity and Water Regulatory Commission (EWRC) technical capacity...A) Financial Management Sub-Activity: The Financial Management Sub-Activity makes foundational investments in Sierra Leones institutional capacity to manage power sector financials.

It includes support for two financial management reforms: operationalization of the independent collection account and implementation of a plan to address public sector arrears to EDSA...(B) Tariff Reform and Regulation Sub-Activity: Through embedded technical assistance, the Tariff Reform and Regulation Sub-Activity shall advance tariff reform and strengthen the technical capacity within the EWRC, building on related activities under the Threshold Program.