A delegation from São Tomé and Príncipe on Wednesday, 31st May 2023, embarked on a Benchmarking understudy Tour of GRIDCo to understand the Energy Sector Recovery Programme, a World Bank Initiative.
The Director of Finance, Mr. Samuel Nkansah gave a synopsis of the Cash Waterfall (CWF) initiative. He described GRIDCo’s business model, and the impact low liquidity has on the maintenance and operations of the National Interconnected Transmission System (NITS). The introduction of the CWF curtailed the irregular flow of revenue from our major customer (ECG). The revenue from ECG spiked from 20% to about 60%.
The GRIDCo Team explained some current “gaps” such as giving the CWF backing by law to establish each stakeholders’ financial obligations, setting tariffs to be cost-reflective, guaranteeing clarity and transparency in the value chain. “Notwithstanding, the Cash Waterfall has been tremendously helpful’’, Mr. Nkansah emphasised.
The São Tomé and Príncipe Delegation toured the SCC where they were taken through how power is dispatched.