Restructuring Mozambique’s Energy Fund (FUNAE)

PROJECTS

Restructuring Mozambique’s Energy Fund (FUNAE)

Client

Mozambique’s Energy Fund (FUNAE)

Services

Organizational Restructuring

Beginning

2016

Conclusion

2017

Location

Mozambique

CONTEXT

Set up in 1997, FUNAE was established to promote energy access and was intended to gather and administer funds to support public and private generation and distribution initiatives.

It has the aim of expanding energy access at low cost to rural and urban areas, as well as to promote the conservation and rational use of the country´s energy resources. In the programmes development, FUNAE has been involved in the implementation of many projects in Mozambique’s rural areas, including: rural electrification of school and clinics using solar panels; solar based mini-grids; mini-hydro projects; mapping of renewable potential; construction of petrol stations in rural areas; and solar module manufacturing. FUNAE’s structure as grown over the past years and the organization is yet to work as a genuine fund, working more as a project implementer/rural electrification agency and even owns and operates a solar panel factory. At this stage, FUNAE thought it would be relevant to re-think its scope, aim and organizational structure, hence this project was developed.

 

 

OBJECTIVES

The project was aimed at providing technical assistance for the restructuring of FUNAE, and included reviewing FUNAE’s mission and overarching objective, reviewing the scope of work and activities, reviewing the budget and updating costs associated to the key activities, re-designing a strategy for private sector involvement, and a new organigram to better support the agency.

The project toke place over a period of 4 months. The outputs were included three stage’s reports:

  • Diagnosis report;
  • Strategic design report and in-depth design planning report;
  • Final summary report.

 

 

DESCRIPTION
Overall Methodology

 

The project was developed in order to support FUNAE’s organizational restructuring and was divided into three phases. The first phase consisted of the analysis of the current energy sector of Mozambique and FUNAE’s structure, the second phase included the revision of the mission and vision for FUNAE and its organizational competences definition, and the third phase consisted in the organizational transformation detail and decree draft preparation.

Phase 1 of the project consisted on the development of the following activities:

  • Beliefs audit;
  • Energy Sector Assessment;
  • FUNAE’s internal diagnosis;
  • Public institutions benchmark.

 

Phase 1 of the project, which kicked off with the Inception Mission. The inception mission was carried out from 11th of July to the 22nd of July, 2016, in which period the project team carried-out the belief audits, energy sector information gathering, individual interviews with FUNAE’s staff and internal information data gathering. In the same period the project team gathered relevant information about relevant other national and international entities in order to identify best practices and develop a benchmark.

Regarding the belief audits the project team conducted 42 individual interviews with relevant energy sector stakeholders. Information and contributions were gathered from a wide range of specialists:

  • FUNAE’s management staff (1st line management);
  • FUNAE’s internal staff;
  • International Donors;
  • Mozambique’s energy sector stakeholders.

 

In matter of the energy sector review, information was gathered by the project team focusing on two main areas:

  • Electricity Sub-sector;
  • Fossil Fuels Sub-sector.

 

Also, the project team gathered information regarding the current framework and administrative structure of the energy sector of Mozambique, focusing also in gathering extensive information on relevant energy sector stakeholders and their responsibilities.

Regarding the internal analysis, the project team focused in the gathering of the following information:

  • Organizational Structure of FUNAE;
  • Organigram;
  • Human Resources Data Sheet;
  • Annual & Financial Reports;
  • Business Processes.

 

Moreover, the project team gathered relevant information about relevant other national and international entities in order to identify best practices and develop a benchmark.

The gathered information was relevant for the analysis of FUNAE’s organization, after which results of its analysis were presented in a Diagnosis Report for FUNAE and DFID.

Phase 2 of the project consisted on the development of the following activities:

  • Mission and Vision Definition;
  • Governance and Competence Model Definition;
  • Financing Model Definition;
  • Legal Implications Detail.

 

Phase 2 of the project kicked-off after approval of the Diagnosis Report by FUNAE and DFID, and consisted on the development of the activities presented above and resulted in the creation and presentation of the strategic design report. In further detail, the activities developed during the Phase 2 of the project comprised the following: Based on the beliefs audits, energy sector assessment, internal diagnosis and benchmark, different alternative Missions and Visions for FUNAE were outlined, compared and proposed. Regarding the Governance and competence model definition, alternative options were analyzed in order to identify the main organizational and governance implications. In terms of the Financing model definition, alternative options were analyzed in order to identify the main financial implications. And finally the Legal implications detail, consisted on analyzing alternative options in order to identify the main legal implications.

Gesto developed Phase 1 and Phase 2 of the Project, as initially planned. However, in the meantime a separate project funded by the World Bank to define a “National Electrification Strategy” started.

Belief Audit interviews identified very differentiated visions about the role and goals of FUNAE and its interface with EDM. It became clear that the “National Electrification Strategy” would have very relevant implications on the future role and structure of FUNAE and therefore it was decided, jointly with DFID and FUNAE, that Phase 3 of the project should be limited to the “organizational detail” activity.

The project was therefore restructured to have a smaller scope (Phase 1, Phase 2 and part of Phase 3), freeing budget for a future assignment focused on the Organizational Detail and Transformation Plan for the future role of FUNAE according to the “National Electrification Strategy”.

 

 

SUMMARY OF SERVICES
  • Belief Audits
  • Energy Sector Assessment
  • Organizational Internal Diagnosis
  • Public Institutions Benchmark
  • Mission and Vision Definition
  • Governance and Competence Model Definition
  • Financing Model Definition
  • Legal Implications Detail
  • Development of Transformation Plan
  • Institutional Restructuring