Power Sector Recovery Performance Based Operation

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The objective of the Power Sector Recovery Operation (PSRO) for Nigeria is to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability. The Program will focus on three results areas. Results Area 1 will improve reliability of electricity supply. The PSRO includes a set of measures to ensure that at least 4,500 MWh/hour (megawatt hour) of electricity is supplied to the distribution grid from 2022. This is the minimum level of supply necessary for grid stability and the reduction of system outages. The experience of the Nigerian power sector indicates that this level of supply ensures more reliable service delivery and significantly improves customers’ payments of electricity bills. Results Area 2 will achieve financial and fiscal sustainability. The financial sustainability of sector companies is critical to enforcing their contractual and regulatory obligations and improving service delivery. It is also the basis for strengthening the balance sheets of sector companies, especially DISCOs, to enhance their ability to attract private financing. Results Area 3 will enhance accountability. Strengthening sector accountability and transparency are the foundations for the successful implementation of the PSRP and its sustainability. Over time, strengthened accountability will translate to increased operational efficiency, including the reduction of technical, commercial and collection losses.