Review Phase I and Appraisal Phase II of the UETCL-Statnett Twinning Arrangement for Capacity Development Uganda

The Project 
The project goal of the twinning arrangement between Statnett SF and UETCL (Uganda Electricity Transmission Company) is "to meet the energy needs for the Ugandan population for social and economic development in an environmentally sustainable manner". The project purpose is that "the UETCL shall become more efficient in its function as transmission system operator and in maintaining public service obligations."

Planned project outputs were:
A. The UETCL strategy and business development including the Single Buyer Role strengthened.
B. Corporate efficiency including budgeting strengthened.
C. Transmission system utilisation maximised.
D. Information Management enhanced.
The original budget for 2006-2008 was 15 million NOK but later and addendum amounting to 4.7 million NOK was agreed. Government of Uganda has requested Norway to finance a new project proposal (phase II) and a combined review and appraisal was executed by Scanteam and Energidata Consulting in October 2008.

Interesting Findings

• Overall, UETCL-Statnett twinning is a successful capacity development project of high relevance for Uganda's power sector. The project purpose, to make the company more efficient in fulfilling its public service obligations, is considered achieved, although the project has failed to make such achievement measurable by developing and using suitable indicators at the results level, setting targets and measuring against such targets. As a consequence, reporting has been weak, and room for mandatory improvements in administrative and financial procedures has also been found.
• The objectives, outputs and activities under the twinning arrangement were marginally predetermined in the first place, but the "empty vessels" were then over time filled with a range of activities and initiatives that were for the most part conducive to achieving the project purpose, and were well adapted to the dramatic changes in the sector due to reduced hydro generating capacity. The project has matured into a comprehensive organisation development project that has contributed significantly to restructuring the company, to overhauling existing and developing new work processes and to raise the professional capacity of staff.
• The project can build from a good working relationship and a workable organisational setup from Phase I, and it can learn from its shortcomings for the proposed Phase II of twinning cooperation.
• Overall, it is evident that the Project Document for Phase II has not been fully developed. The description of the overall aim, the rationale and justification, as well as the description and coherence of outputs, and how they will be achieved, are superficial at best. Indicators have not been developed to measure outputs, outcomes and achievement of the purpose so that the basis for monitoring and reporting is weak. The conclusive finding is that the project design process should be taken up once more, and the project document should be revised and considerably developed further.