Mozambique: Institutional cooperation with the Ministry of Energy and Minerals

Overall Project Data

Financial donor:   The Royal Norwegian Embassy in Maputo

Contract Value/duration:  MNOK 42 / 2017-2020

Background: 

The Mozambican Minister of Energy visited Norway in June 2012, holding talks with several relevant Norwegian institutions, specifically NVE and Statnett. Following these talks the Ministry sent a request to the Norwegian Embassy in Maputo proposing possible areas of cooperation with the two Norwegian institutions. After an extensive Inception Phase, a programme document defining a cooperation in the areas analytic capacity, legal framework and capacity building in the regulator was produced. 

The Royal Norwegian Embassy agreed to finance the programme in November 2016, and programme activities started early 2017. During the Inception Phase, the Ministry of Energy was merged with the Ministry for Mineral Resources, forming a new Ministry of Mineral Resources and Energy (MIREME). 

 
NVE Mandate 

An institutional cooperation with the Mozambican Ministry of Mineral Resources and Energy (MIREME) in the area of energy, focusing on analytic capacity, legal framework and capacity building in the regulator. 

 
Activities: 

The programme has a planned implementation spanning 4 years and covers the following cooperation areas: 

• Analytic capacity: Covering needs for improving the data basis, data collection procedures and data analysis. The purpose of the work is to enable MIREME to better follow the development of the power sector across the nation and hence better guide the development. 
• Legal and regulatory framework: There is a need to modernize, clarify and detail the legal framework to facilitate private sector participation in the power sector. A proposal for a thoroughly revised electricity law has been developed that proposes significant changes to sector organization and market structure, as well as clarifies the rights and duties of different actors, in particular the newly established regulator. 
• Developing capacity in the regulator: A law establishing a regulator – ARENE – for the energy sector was passed late in 2017. The new organization must quickly develop the necessary regulatory functionality and capacity to fulfil its mandate. 
• General training. A detailed Training Needs Assessment has been carried out and a component for addressing the issues uncovered designed. A local training programme has been initiated to improve the capabilities of employees in MIREME and ARENE in subject such as project management, public sector management skills, Englis, Excel, etc. 

 
Status as of January 2022: 

The work in the area analytic capacity initially focused on collecting independent information on electrification on- and off-grid. The progress of this has stalled, and the cooperation area will have to be re-scoped. A study on the impact of the COVID-19 pandemic on the power sector was carried out in 2020. In 2021 a study on the benefits of alternative allocations  of hydro power generation and advice for the establishment of a unit for planning of electrification has been delivered.  

Since the start of the programme, there has been an intensive activity involving several donors in the area legal framework, in particular Norway and USAID. A thorough revision of the electricity act is under way, and NVE has functioned as the advisers to MIREME in this process. A law proposal was be submitted to Parliament late in 2021. NVE has undertaken to assist with the development of regulations to the new law. 

The cooperation area for developing capacity in the regulator has barely been able to start. The regulator was formally established in December 2017, but a CEO was not appointed until November 2019. In practice, the lack of a legitimate leadership has thwarted any efforts to start the cooperation area. Since the appointed of the new CEO, activities have started, but have still not delivered tangible outputs.  

A general training programme comprising training in project management, leadership, English, excel, etc. has been successfully carried out. An extension is under implementation. 

The programme was given a no-cost extension because of the COVID-19 pandemic, and will now end by the end of 2022.