The Government of Cape Verde, a group of islands situated off the West Coast of Africa, has embarked upon Private Sector Participation (PSP) in the industries of transportation, communications, water and electricity.
An independent regulatory agency has been established with responsibility for these sectors and the Government is in the process of awarding a long-term concession contract for the operation of the electricity and water distribution systems.
This research project funded by the World Bank will assist the regulatory agency in developing policy and rules for electricity, water and sanitation.
The research team are US economists Econ One, WRc, international lawyers Morrison and Foerster and Cape Verde lawyers Avogados e Jurisconsultos.
The study is examining:
- Commercial relationships within the sectors;
- Access to the distribution networks by independent producers;
- Quality of services to consumers; and
The project will analyse current legal and institutional structures and assess possible future developments in light of the Governments wish to encourage competition. Guidance will be prepared for tariff setting, network connection for electricity and water producers and purchase of their products, customer service codes and service level standards.
The research will provide the regulatory authority with draft regulations and contracts defining industry policy, codes of conduct and stakeholder rights and obligations. The Authority will thus be able to commence its regulatory duties proactively, encouraging development of electricity and water services in Cape Verde in an efficient and equitable manner.