Safir Ppt- Introduction to the Strategic Plan - 14 July 07

7/30/2019 Safir Ppt- Introduction to the Strategic Plan - 14 July 07

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Administrative Partner Support to SAFIRDeveloping a Strategic Plan for SAFIR14 July 2007

PwC


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Agenda

Introduction

Context in South Asia

Benchmarking SAFIR

Development of Strategic Plan


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PricewaterhouseCoopers 05 April 2007Page 3For Discussion

SAFIR Over the years

Setup in 1999 under PPIAF support to facilitate- effective regulation of infrastructure

industries,- information exchange- regulatory decision making capabilities

between regulators in the South Asia region

Membership- Independent Regulators / Agencies with

regulatory functions across India, Pakistan,Sri Lanka, Bangladesh, Nepal, Bhutan

- Sectors covered include Electricity,Telecom, Oil and Gas, Water and Transport

- Members and Core Partner Institutes

Support to SAFIR- TERI appointed as Host (Administrative

Partner and Training Partner) from thebeginning

Activities

Core Course

Regional Workshops

Newsletters / Websites

SAFIR was created at a time when independentregulatory bodies were being formed in South Asia.

SAFIR met the training needs of these nascent bodiesand provide them a platform to interact with each other.


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SAFIR today

PPIAF support to SAFIR in 2006towards following appointments for atwo year period

Administrative Partner

PricewaterhouseCoopers Pvt. Ltd.

Training PartnerLIRNE Asia

Administrative Partner Role Develop a Strategic Plan for SAFIR

Delivery of Workshops

Outreach activities (including website / newsletter) Assist in delivery of SAFIR meetings

Training Partner Role Design and Delivery of the SAFIR Core Course

Some Thoughts

How has the context changed over the last few

years?Has SAFIR kept pace with developments in theregion?

What do members seek from SAFIR?

What holds SAFIR back?

0 5000 10000 15000 20000 25000 30000 35000

FY06

FY07

Revenue(USD) Cost(USD)


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Developing a Strategic Plan for SAFIR : Our Approach

Financial

Requirements

Projecting a Vision

Action Plan 1Action Plan 2

Action Plan n

Communication

Plan

Goal 1Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements

ExternalBenchmarking

with similar forum

RegulatoryContext

How to make it

Work ?

What are the

requirements?

What does SAFIR

wish to do ?

Financial

Requirements

Projecting a Vision

Action Plan 1Action Plan 2

Action Plan n

Communication

Plan

Goal 1Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements


with similar forum

RegulatoryContext

How to make it

Work ?

What are the

requirements?

What does SAFIR

wish to do ?


6/38

Agenda

Introduction


Benchmarking SAFIR



7/38PricewaterhouseCoopers 05 April 2007

Page 7For Discussion

Poor Access to Infrastructure

Access to Electricity Network (% of Population)

0

20

40

60

80

100

SSA MENA SA EAP LA & C E & CA LI MI HI -

OECD

World

Access to Improved Water Sources (%)

0

20

40

60

80

100

120


OECD

World

Road Density in terms of population (road km/1000 people)

0

4

8

12

16

20


OECD

World

Teledenisty (telephone subscribers/1000 people)

0

200

400

600

800

1000

1200

1400

1600


OECD

World

SSA Sub Saharan Africa, MENA Middle East and North Africa, SA South Asia, EAP East Asia and Pacific, LA&C Latin America and the Caribbean,E&CA Europe and Central Asia, LI Low Income, MI Middle Income, HI OECD High Income and OECD Members, World Worldwide Average. Source:World Bank Policy Research Working Paper 3643, June 2005




Operating Efficiency

Utilities in the region have traditionallybeen state owned with little incentive tooperate efficiently

Depend heavily on government for

subsidies for day-to-day operations

Regulatory framework that wouldencourage the development of bettercommercial practices would be critical tothe improvement of the utility performance.

For e.g. performance based benchmarkingmechanism implemented by some SAFIRmembers.

Transmission and Distribution Losses (% of total output)

0

5

10

15

20

25


OECD

World

Transmission and distribution losses(as a % of total output) in South Asiais the highest at 22% compared to aworld average of 14%.

Source: World Bank Policy Research Working Paper 3643, June 2005




Requirement of Investment in Infrastructure

Required investment in infrastructure isabout 3 times the current levels ofinvestment

A 7.5% GDP growth would result in

increased demand for infrastructureservices calling for an investmentamounting to US$88 billion per annum inthe next five-years.

PPP in infrastructure offer promise fordeveloping infrastructure and improving

services. Perception of regulatory riskremains a key limitation.

Investment Required as % of GDP

(2006-2010)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Electricity

Telecom

Roads

Rail

Wate

r

Sanitation

Tota

l

New Investment Capital Replacement

Total

Source: Estimation of Infrastructure Investments Needs in S. Asia Chatterton & Puerto




Current Status of Regulation in South Asia

Given this milieu, what role can SAFIR seek ?

Facilitate knowledge sharing between regulatory bodies in the region at differentstages of regulation

Can SAFIR engage with policy makers considering introducing independentregulatory agencies?

Body


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Agenda

Introduction


Benchmarking SAFIR



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Internal Evaluation SAFIR Questionnaire

Discussions with SAFIRmembers / select stakeholders

Obtain feedback on SAFIRsstated objectives and delivery

against the same

Identify specific action points forSAFIR

Received responses from only17/36 members

SAFIR Objectives Clarity and Relevance of the present

objectives to SAFIR members

Effectiveness of SAFIR on delivery of

objectives

Focus areas for the future

Delivery on action points including

Core Course

Newsletters, twinning arrangements,

workshops

Website

Objective Parameters Covered

PwC follow-up on questionnaireOn an average, 4 phone calls to each member 4 emails to each member requesting response toquestionnaire Individual visits also made to several members


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Internal Evaluation Feedback on Objectives

Objective 1 - Provide a platform for experience sharing amongst the regulators of the region.Objective 2- Build regulatory decision-making and response capacity in South Asia

Objective 3 - Facilitate the regulatory process

Objective 4 - Conduct training programmes to serve regulatory agencies and other stakeholders

Objective 5 - Spur research on regulatory issues

Objective 6 - Provide a databank of information relating to regulatory reform processes and experiences

* Mapping of Objectives is based on the respondents perception of what SAFIR offers. There are instances where respondentswere not fully aware of SAFIR activities on account of various factors.

Objective 5

Objective 3

Objective 2

Not Clear but Most

Relevant

Very Clear but Not

Relevant

Objective 1

Objective 4

Very Clear and

Most Relevant

Not Clear and Not

Relevant

Objective 6

Clarity

Relevance


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External Benchmarking Positioning SAFIR

As-Is Strategy map for SAFIRbased on an assessment ofSAFIRs current activities andexternal benchmarking

For benchmarking, we havecategorized following

Batch A Established, selfsustaining forums

Batch B Developing Forumsapproaching sustainability

Batch C More recently

established Forums still heavilydependent on aid

Other Institutes in South AsiaRegion offering services toregulatory agencies

Training for regulatory staff

Interaction with regulated entities,investors, consumers

Regulatory Research Activity

Linkages with similar international

forums Advice to policy makers

Build regulatory decision-making andresponse capacity

Experience Sharing and Learning withinregion

Methodology Parameters


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Who are the entities ?

BenchmarkingSummary Name Description SectorsBatch A NARUC

Camput

Regulatory agencies of 50 states of USA, Puerto Rico,

Columbia and Virgin Islands

16 members in Canada

Telecom and Energy

Public Utility

Batch B ERRA 22 electricity regulators in East Europe Energy

Batch C EAPIRF

AFUR

43 regulators in 25 Countries in East Asia and Pacific

22 regulators across 10 countries in Africa

Infrastructure

Infrastructure

Other Institutes in theregion

IIM

Ahmedabad,TERI

Academic and Research Institutes with a focus oninfrastructure, public policy and regulatory issues

Infrastructure


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Strategic Positioning As-is map - Parameters

Training for regulatory staff

- Number of courses offered, customized courses,online programs, certification programs, externalparticipants

Interaction with regulated entities,

investors, consumers

- Allowed to be members of forum, access to eventsorganized by forum, programs, specific eventsorganized for stakeholders

Regulatory Research Activity

- Active research / academic institute linkages,interest expressed in research activity, volume ofresearch output

Linkages with similar international fora- Membership of such fora, information sharing on

activities and experiences , active participation inevents

Advice to policy makers

- Develop white papers / offer advice to policymakers in the region, engaging policy makers onissues of common interest

Build Regulatory decision-making

capacity

- Local / regional involvement in workshops,availability of a discussion forum betweenmembers, regular access to key internationalregulatory decisions, circulation of newsletters,twinning arrangements

Experience Sharing within region

- Number of workshops organized for experiencesharing, information on each member and regular

updates on the activities carried out, regional casestudies

Information Source

- Creation of regulatory database in region, periodicupdates to the same


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Strategic Positioning As-is map

Strategy Canvas - Current

Training for

regulatory staff

Interaction with

regulated

entities,investors,

consumers

Regulatory

Research Activity

Linkages w ith

similar

international

forums

Advice to policy

makers

Build regulatory

decision-making

and response

capacity

Experience Sharing

and Learning

within region

Information Source

on region

SAFIR Institutes in S. Asia Batch A Batch B Batch C

Low

Moderate

High


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Agenda

Introduction


Benchmarking SAFIR



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Financial

Requirements

Projecting a Vision

Action Plan 1

Action Plan 2

Action Plan n

Communication

Plan

Goal 1

Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements


with similar forum

RegulatoryContext

How to make it

Work ?

What are therequirements?

What does SAFIR

wish to do ?

Financial

Requirements

Projecting a Vision

Action Plan 1

Action Plan 2

Action Plan n

Communication

Plan

Goal 1

Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements


with similar forum

RegulatoryContext

How to make it

Work ?


What does SAFIR

wish to do ?


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Objectives Information collated from interaction

Questions raised

Increasing availability of other options tomembers on basic regulatory training andinformation How can SAFIR carve a niche foritself?

Can SAFIR play a role at the regional level bycoordinating with SAARC / policy makers?

Should SAFIR be a forum of regulators or aforum on regulation ?

How can member personnel be made toparticipate in SAFIR programs on experiencesharing ? What can they be offered?

How can SAFIR link up to other internationalbodies to share experiences?

How can learning opportunities and personneltransfer within region be facilitated?

Some objectives not sufficiently differentiatedin perception of some respondents. Adequateinformation flow to member personnel.

Divided responses on issues such asregulatory research and role that SAFIR canundertake

Are all sectors provided adequate attention ? Is there a perceived need for regulatory

databases / information for SAFIR members?

Takeaways

How should SAFIR objectives be aligned tonew needs?

Each objective to be linked to a set of actionpoints with specific outcomes and measurable

indicators of success

Financial Plan - Determiner of what actionpoints to be focussed on

Can SAFIR members take ownership for actionpoints including monitoring of achievementsand pointing out constraints that need to be

resolved

How can SAFIR member personnel be moreclosely involved?


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Possible Objective - Engaging Stakeholders in Regulation

In the past, non-regulators have been invited toSAFIR workshops and events.

Can this practice be institutionalized through anannual interaction with a section of stakeholdersin infrastructure (investors, customer bodies,utilities, funding agencies)?

What is in it for SAFIR?Obtain perspectives from different stakeholders ontopics of regulatory decision making

Some members have the role to Aid and advice togovernment on promotion of investment in theirindustries

Potential source of revenue for SAFIR can be usedto cover expenses and fund other activities

Has been attempted successfully inother places !

Private Sector Participation in Infrastructure

909

684

1143

95

255 280

3770

41

225182

408

0

200

400

600

800

1000

1200

1400

EAP ECA LAC MENA SA SSA

Number of Projects Value of Projects (Billion USD)

Figures are based on projects with private participation and not privateInvestment alone.

Source: Private Participation in Infrastructure Database, PPIAF


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Case Study: ERRA Investor Conference (2002-2007)

ERRA Secretariat organizes an annual investorconference to serve as a platform for open discussionsand exchange of information between regulators andstakeholders.

Participants include funding agencies, utilities,investors, consulting firms, banks, financial institutions

and legal firms seeking to understand regulatory issuesacross countries in the region Over 200 attendantsannually

Sessions include plenary sessions, break out sessionsto discuss country specific issues as well asopportunities for Q&A with the regulators.

Significant revenues streams

20% of ERRA revenues through sponsorship /attendance fees

Opportunity to market other ERRA activities trainingprograms, databases

Past Conferences Themes

Public Service & Environmental Obligations Investment &Regulatory Implications

Regional Electricity and Gas Market Development

Renewable and Energy Efficiency Regulatory & InvestmentFramework

Project Financing and the Regulatory Environment

Reform, Privatization and Investment Lessons learnt

Pricing Methodologies & ApproachesPerspectives

Barriers to Entry Investment Experiences

Sponsors

USAID, Regional Gas Associations, Public SectorElectricity and Gas majors, Private Infrastructurecompanies


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Possible Objective - Enhancing Regional Co-operation

Improving regional and interregional connectivityin electricity, transport and communications areunder consideration by SAARC

SAARC Energy Centre established in Lahore tofacilitate cooperation in electricity, gas sectors inSouth Asia SAARC energy ring

SAFIR could assist policymakers Sharing information on laws, rules, tariffs,

procedures and costs

Examine feasibility of harmonizing systems

Experience sharing on institutional arrangements,energy conservation, renewable energy, privateinvestment


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Possible Objective - Reaching Out beyond the South AsianRegion

Global agencies such as IERN have approachedSAFIR to be a partner. Significant cross-regionalexchanges noticed between geographic regions whilestudying other agencies

What is in it for SAFIR?

Access to global regulatory databases that cansupport benchmarkinguser is also a contributor

Allows SAFIR to link to regulatory agencies in differentgeographic regions in a symbiotic manner to availaccess

- Training programs,

- Experience sharing,

- Twinning arrangements,

- Research activities


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Financial

Requirements

Projecting a Vision

Action Plan 1

Action Plan 2

Action Plan n

Communication

Plan

Goal 1

Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements

External

Benchmarking

with similar forum

RegulatoryContext

How to make it

Work ?


What does SAFIR

wish to do ?

Financial

Requirements

Projecting a Vision

Action Plan 1

Action Plan 2

Action Plan n

Communication

Plan

Goal 1

Goal 2

Goal n

Institutional

Support

SAFIRMember

Requirements

External

Benchmarking

with similar forum

RegulatoryContext

How to make it

Work ?


What does SAFIR

wish to do ?


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Delivering on the Objectives Questions to be answered

Is the Steering Committee in itspresent form effective? If not, what arealternatives?

How can alternative structures beestablished?

Can members volunteer to supportspecific responsibilities?

Should SAFIR plan for a fully

operational secretariat by 2008?

How can participation in SAFIR betaken to the officer level in memberorganizations?

What will be the nature of PPIAFsupport in future years?

Should membership fees cover

basic establishment and operatingcosts?

Can new sources of funds beexplored?

Institutional Arrangements Financing Plan


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Delivering on the Objectives Questions to be answered

What may be done to make thewebsite and newsletter moreresponsive to needs of SAFIRmembers?

How can information flow frommembers to SAFIR secretariat andvice-versa be better coordinated?

How can officer level staff of SAFIRmembers be made aware of SAFIR

plans and how can they contribute toSAFIR?

How should external communicationbe managed?

Communication


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Conclusions and Way forward

This presentation is intended to serve as a basis for a discussion on the SAFIRstrategic plan

Discussion among SAFIR members and a select audience on the strategic plan,financing plan, objectives and broad action plan for SAFIR for the next few years ;specific activities for next 2 yrs Planned in subsequent session

Based on observations received in the Steering Committee meeting, a finalstrategic plan for SAFIR will be put in place

Th k Y


29/38

Thank You

2004 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the networkof member firms of PricewaterhouseCoopers International Limited, each of which is a separate andindependent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers. PwC

Benchmarking SAFIR


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Internal Evaluation Objective 1 Experience sharing

Adequate represenation to

regulatory issues relevant to

members

44%

31%

25% 0%

Yes Yes (partially) No

Clarity of the objective to

SAFIR members

02

4

68

10

NotClear

Somewhat

Clear

Clear

VeryClear NA

Numberofresponses

Relevance of the objective toSAFIR members

0

2

4

6

8

Not

Relevant

Somewhat

Relevant

Relevant

Most

Relevant NA

Num

berofresponses

Benchmarking SAFIR

Contributed to experience

sharing under SAFIR?

53%

7%

40%

0%

Yes Yes (partially) No

Contributed to experience

sharing under SAFIR?

53%

7%

40%

0%

Yes Yes (par tially) No

Use of other organization for

experience sharing?

56%

38%

0%

6%

Yes Yes (partially) No NA

Benchmarking SAFIR


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Internal Evaluation Objective 2 Regulatory Decision Making

Benchmarking SAFIR

Clarity of the objective to SAFIR

members

0

2

4

6

8

NotClear

Somewhat

Clear

Clear

VeryClear

NA

Numberofresponses

Relevance of the objective to

SAFIR members

0

2

4

6

8

Not

Relevant

Somewhat

Relevant

Relevant

Most

Relevant

NA

Numberofresponses

Benchmarking SAFIR


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Internal Evaluation Objective 3 Regulatory Process

Benchmarking SAFIR


SAFIR members

0

2

4

6

8

NotClear

S

omewhat

Clear

Clear

VeryClear

NA

Numberofre

sponses


SAFIR members

0

2

46

8

Not

Relevant

Somewhat

Relevant

Relevant

Most

Relevant

NA

Numberofres

ponses

Benchmarking SAFIR


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Internal Evaluation Objective 4 - Training

Benchmarking SAFIR

Clarity of the objective toSAFIR members

02

468

10

NotClear

Somewhat

Clear

Clear

VeryClear

NA

Number

ofresponses

Relevance of the objective toSAFIR members

02

468

10

Not

Relevant

Somewhat

Relevant

Relevant

Most

Relevant

NA

Numbe

rofresponses

OGRA, Pakistan: feels that inobjective 4, more research

studies/case studies on oil & gas

sector should be included. SAFIR

should spur research in O&G sector

and impart training though its

programs.

ASCI, India: feels that SAFIR should

include expertise in the South Asian region,

build case studies and sponsor research to be

used in the training programmes aim to

become epitome of knowledge in the region

and thus facilitate case studies and sponsor

research.

Benchmarking SAFIR


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Internal Evaluation Objective 5 - Research

Benchmarking SAFIR


SAFIR members

0

2

4

6

8

NotClear

Somewhat

Clear

Clear

VeryClear

NA

Num

berofresponses


SAFIR members

02468

1012

Not

Relevant

Somewhat

Relevant

Relevant

Most

Relevant NA

Num

berofresponses

MPERC: feels that The SAFIR

must collect articles and write ups onrelevant subjects and must host on

their web siteshould build a rich

database which includes all the

recent work in form of articles,

papers etc on various sectors.

UPERC: feels that SAFIR is correctly

focussed on experience sharing between theinfrastructure regulators of the region and

on conducting training programmes. It may

help if research in regulatory issues is also

emphasized. SAFIR may like to bring out a

regular Research Publication.

Benchmarking SAFIR


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Internal Evaluation Objective 6 - Databank

Benchmarking SAFIR


SAFIR members

02468

10

NotClear

Clear NA

Num

berofresponses


SAFIR members

024

68

10

Not

Relevant

Relevant NA

Num

berofresponses

UPERC: feels that SAFIR has not contributed significantly in respect of

research in regulatory issues and creating a data bank of information relating to

regulatory processes and experiences.needs to focus more on regulatory research

and building a comprehensive database providing information related regulatory

processes and experiences across the regions

Benchmarking SAFIR


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Internal Evaluation Important Objectives going forward

Benchmarking SAFIR

MERC: feels thatmore focus should be

put on the staff of the

commission in

SAFIRCommission

staff should be given

due credence andshould be invited for

the training programs

ETFC: feels that SAFIR may provide policy

advisory, on a non binding basis, to National

Governments for Promotion, strengthening

and modernization of Infrastructure regulatory

and reform aspects.

Electricity Tariff Fixation Committee, Nepal indicated that SAFIR had not

adequately pursued with National Governments for reflection of SAFIR outcomes

and findings in respective government policies and programs. They also desired

usage of local regional expertise, an assessment of country specific issues on

Infrastructure Regulation and an assessment of Regulatory Standards in member

countries. needs to involve all stakeholders for achieveing the desired results with

optimum resource utilisation. They further expressed the need of local regional

experts for assessment of country specific issues on Infrastructure regulation and an

assessment of regulatory standards in member countries.

Benchmarking SAFIR


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Internal EvaluationSAFIRs Activities

Benchmarking SAFIR

ETFC, Nepal: feels that SAFIR should

consult with individual SAFIR

members before designing the Training

Programs and topicsdesigning of core

course content should be done thorughmember consensus.CSERC: feels that trainingprogrammes should focus on particular

sectors. General programmes on

infrastructure regulations are not very

useful.be sector focussed, and sector

based sessions or training programs

should be developed.

HPERC: feels that core course shouldbe made more interactive and less

theoretical, based on real life situations

faced by the regulators

OGRA: feels that more emphasis should

be given to the oil & gas sector research.Ssector based sessions should be

increased

UPERC: feels that SAFIR core course program should also focus on road blocks in

the reform process in the power sector and alternate remedies available to overcome

those bottlenecks. The faculty for the programme should be drawn primarily from

regulatory experts within the region

Benchmarking SAFIR


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Internal EvaluationSAFIRs Activities

Appropriate duration ofSAFIR core course

30%

40%

30%

4-6 days 6-10 days 10-15 days

Benchmarking SAFIR

Did the past workshops address your

organisations needs and requirements

36%

50%

0%

14%


Is your organization interested in

twinning arrangements

67%

13%

20% 0%


Would your organizations budget

support twinning arrangements

for your own staff

36%21%

14%

29%


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