task c: institutional development - world bank€¦ · 2.1 source: task c inception report review...

Deliverable 2: Strategy for institutional development of GECOL report

Task C: Institutional development &

performance improvement of GECOL

June 2017

REVISED FINAL REPORTP

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Prepared for The World BankStrategy& | PwC

Disclaimer and copyright note

This document has been prepared only for the International

Bank of Reconstruction and Development ("IBRD") and solely

for the purpose and on the terms agreed with the IBRD in our

agreement dated 21 March 2017 relating to Task A.

The scope of our work was limited to a review of documentary

evidence made available to us. We have not independently

verified any information given to us relating to the services.

We accept no liability (including for negligence) to anyone else

in connection with this document. We have agreed with you

that the report will be provided by you to GECOL for their

consideration. We would ask that it not be provided to anyone

else unless otherwise agreed in writing by us.

This is a draft prepared for discussion purposes only and

should not be relied upon; the contents are subject to

amendment or withdrawal and our final conclusions and

findings will be set out in our final deliverable.

© 2017

PricewaterhouseCoopers

LLP

All rights reserved. In this

document, 'PwC' refers to the

UK member firm, and may

sometimes refer to the PwC

network. Each member firm

is a separate legal entity.

Please see

www.pwc.com/structure for

further details


The present document is focused on the institutional development of GECOL

2

Present report

Strategy for

institutional

development

Tariff framework

review

Tariff structure

set-up and reform

pathway

Improving financial

performance of

customer service

Improving technical

performance

2.1 3.1

3.2

4.1

4.2

Findings review and

final report

5.1

Data collection

1.1

Project review

and

recommendation

Customer service

performance

improvement

Financial

performance

assessment &

financial models

Institutional

Development

Project

set-up

2 3 4 5

Tools (excel model)

and trainings

3.3

1

Methodology,

team and approach

validation

1.2

Workshop & trainings6

PMO (progress reporting)7

Process mapping &

identification of gaps in

staff, skills, perform.

2.2

Manpower / org.

rationalization review

ERP System

review

2.3

2.4

Task C project approach and current report focus

Source: Task C inception report


Final reportPresent report

In the latest revision of this report, the update of GECOL strategic priorities was moved to Task C final report

3

Current report focus

Project review

and

recommendation

Customer service

performance

improvement

Financial

performance

assessment &

financial models

Institutional

Development

Project

set-up

2 3 4 51

Strategy for

institutional

development

2.1

Source: Task C inception report

Review of 2010-2015 strategic plan

implementation status

Updated strategic priorities

Review of GECOL operating model

(governance and organization)

Options for GECOL operating model

Scope

of work

Findings review and

final report

5.1

Review of 2010-2015 strategic plan

implementation status

Updated strategic priorities

Inputs from

Task C

deliverables

Moved to


Review of GECOL operating model (governance and organization)

Recommendations for GECOL operating model

Appendix – organizational benchmarking


The review of GECOL’s operating model is based on six criteria

Criteria for the assessment of GECOL’s operating model

5

• Operational and financial results

accountability

Results

accountability

• Efficiency of operating model

framework (e.g. no duplications,

no fragmentation)Efficiency

• Alignment of organizational

structure with industry best

practice

Alignment to best

practices

• Organization suitability to long-

term evolution process (e.g.

unbundling, liberalization, etc.)

Preparation for

future evolution

III

IV

V

II

• Clear separation between BU,

corporate core and services

Clearly defined

operating model

I

Alignment with Strategic Priorities

• Alignment with GECOL strategic priorities /

pillars identified within GECOL institutional

development strategy

VIFINAL REPORT


Today GECOL is organized in 3 major “Operational Units”2

and several general departments

GECOL organization

Support

Services

“Business”

Operations

“Network”

Operations

Contracts

& Dev. AccountsLegal Affairs

Transmission

Projects Planning

Studies & Dev.

Procurement

& Stores

HR & Communication

General Services

Financial Affairs

Distribution

Consumer Services

MV Networks

Generation

Transmission

ICT

Control

Generation

ProjectsDistribution

Projects

Managing

Director

MD Office

Public

Relations

Follow-up

Strategic Plan PMO

Southern Experts &

Cons. OfficeExperts and

Consultants Office

Eastern Experts &

Cons. Office

Performance

Monitoring and

Follow-up

BoD Affairs

Media Internal Control

Board of

Directors Description

Board of

Directors

Monitors and controls the

activities while leading the

company’s organizational

set-up

Managing

Director

Manages 3 BUs and several

departments among which

the projects (engineering)

and development accounts

“Network”

Operations

Manages the generation and

transmission business

“Business”

Operations

Manages the distribution

and supply business

Support

Services

Responsible for accounting,

HR, procurement & general

services across the

organization

1) Electricity Police is not included within GECOL’s organization chart 2015 (unit collocation still to be confirmed by GECOL); within next slides, electricity police is thus excluded

2) Referred within the report as operational (or organizational) units as they seem not to own all levers of a BU/SBU (e.g. accountability on P&L, etc.);

Source: Latest up-date of GECOL company organization chart 2015 (June 2017)

6

Electricity police1

Department / sub-

department or belowGeneral department


The review has highlighted a few improvement areas

Key improvement areas identified

7

Operational

Units

ICT

Project(s) general

departments, Planning

Studies & Dev.

Development

Accounts &

Contracts

Performance

Monitoring

& Financial affairs

Board of

DirectorsHR (&O)

1 2 3 4

5 6 7


Each “Operational Unit” covers two major activities, increasing complexity

Organization structure of GECOL Operational Units

“Business” Operations

Assistant Managing

Director

ICT

Transmission

Generation

Control

ICT Center

Networks

Technical Support

ERP Follow-up

Digital Inf. & Doc.

Infrastructure

Communications

National Control

Eastern Reg. Control

Western Reg. Control

Op. Studies & Protection

Technical Affairs

Eastern Substations Op.

West. Substations Op.

Efficiency Tech. Affairs

Dev. & Automation

Power Plant Dept.

Control & Protection Sy.

Req. (Procurement)

Central Maintenance

Gas Plants Affairs

St. & D. Plants Affairs

Technical Affairs

Installations

Dev. & Automation

West Tr. Net. Maint.

East Tr. Networks Maint.

Western OHL Main.

Eastern OHL Main.

8

Operational units1.1

“Network” Operations

Assistant Managing

Director

MV Networks

Distribution

Consumer Services

Operations Planning

Technical Affairs

Tripoli

Western

Central

Benghazi

Southern

Green Mountain

Area MV Networks

O&M Planning

Emergency & Diesel

Tehcnical Affairs

Installations

Dev. & Automation

Area distribution

Govt. & Co. ACCs

Energy & Measurement

Commercial Affairs

CS Systems Commercial Losses

Area Customer Services

Diverse and complex business activities (e.g. transmission &

generation) under the control of the same assistant MD

Consideration

in next slides

Better with

transmission or with

distribution?


Furthermore, it is unclear whether the “Operational Units” have all the levers of a BU/SBU

9

Key levers for BU/SBUs creation and accountability

Operational

Unit

Business Unit

as a “Profit Centre”

BUs are required to:

• Prepare and submit opex and capex

budget, for approval by MD / BoD

• Propose improvement initiatives and new

projects, again for approval by MD / BoD

• Proposing KPIs and performance targets

to evaluate results

• Taking corrective actions to align

performance with objectives

BUs have direct responsibility on:

• Capital spending within the limits

approved in the budget

• Cost and revenues

• Staffing and deployment of personnel

1.2

Operations

planning

Maintenance

planning

Operations

planning

Maintenance

planning

Manage Personnel

Propose budgets

Manage CAPEX

Manage P&L

Full P&L accountability, within the strategic guidelines

and the capital allocation set by the corporate coreDo Business & Network

Operations units own

the typical levers of a

BU/SBU?

Operational units


Projects & Engineering departments are divided in several units: is this the most efficient solution?

Direct reports to MD

Business OperationsNetwork Operations Support Services

Contracts

& Dev. Accounts

Legal Affairs

Transmission

Projects

Planning

Studies & Dev.

Generation

Projects

Distribution

Projects

Managing Director

(MD)

Managing Director

Office Sub Dept.

Public Relations

Dept.

Health Services

Dept.

Follow up Dept.

Strategic Plan PMO

Southern Experts &

Cons. Office

Experts and

Consultants Office

Eastern Experts &

Cons. Office

Tenders & Contracts

Customs Clearance

Projects Accounting

L/C's Financing

Strategic Planning

Econ. Research. & Studies

Standards & New Tech.

Technical Planning

Tech. Research & Studies

Projects Follow-up

Development Projects

Engineering Dept.

Imports & Stores Follow-up

Area Distribution Projects

Substation Projects

Engineering

Net. & Cables Projects

Steam Plants Projects

GAS & CC Plants Projects

Experience

Legal Opinions & Proceedings

Cases & Seizures Follow-up

Legal Experience

Tripoli

Western

Central

Benghazi

Southern

Green Mountain

Zliten

West Coast

Mountain

Gharyan

Jafara

Tobruk

Mergab

10

Projects/engineering

capabilities divided in

different departments

2 Project(s) general departments & Planning, Studies & Dev.

High number of

general departments

reporting to MD


The organization seems to lack a proper “AFC” (accounting, financial management and control) core function

GECOL organization / management structure

Contracts

& Dev. Accounts

Legal Affairs

Transmission

Projects Planning

Studies & Dev.Generation

Projects

Distribution

Projects

Managing

Director

MD Office

Public

Relations

Follow-up

Strategic Plan PMO

Southern Experts &


Consultants Office

Eastern Experts &

Cons. Office

Performance

Monitoring and

Follow-up

BoD Affairs


Board of

Directors

Support

Services

Business

Operations

Network

Operations

Procurement

& Stores

HR & Communication

General Services

Financial Affairs

Distribution

Consumer Services

MV Networks

Generation

Transmission

ICT

Control

11

Strategic Planning

Econ. Research. & Studies

Standards & New Tech.

Technical Planning

Tech. Research & Studies

Accounting

Gen. Ledger &Fin. Reports

Financial Planning

Fixed Assets & Insurance

Materials Accounting

Lack of a finance and

controlling unit

responding to MD

under CFO leadership

Tech. Perf. Monitoring

Fin. Perf. Monitoring

Admin. Perf. Monitoring

Administrative Affairs Office

Some activities

performed by these

units are pertinent

to finance

Performance monitoring & financial affairs3


ICT is embedded in Network Operations, despite its support and core corporate nature

GECOL Organization / management structure

12

ICT4

“Network”

OperationsAssistant

Managing Director

ICT Transmission GenerationControl

National Control

Eastern Reg. Control

Western Reg. Control

Op. Studies & Protection

Technical Affairs

Eastern Substations Op.

West. Substations Op.

Efficiency Tech. Affairs

Dev. & Automation

Power Plant Dept.

Control & Protection Sy.

Req. (Procurement)

Central Maintenance

Gas Plants Affairs

St. & D. Plants Affairs

Technical Affairs

Installations

Dev. & Automation

West Tr. Net. Maint.

East Tr. Networks Maint.

Western OHL Main.

Eastern OHL Main.

Managing Director

(MD)

ICT Center

Networks

Technical Support

ERP Follow-up

Digital Inf. & Doc.

Infrastructure

Communications

Mixture of support and

core corporate

activities


HR&O are not differentiated between services and corporate core, the last ones not reporting to the MD

GECOL Organization / management structure

13

“Support”

ServicesAssistant

Managing Director

Procurement

& StoresGeneral Services

HR &

CommunicationFinancial Affairs

Managing Director

(MD)

Procurement

Stores

Organization & structuring, HR & Communication5

Accounting

Materials Accounting

FA & Insurance

Ledger & Fin. reports

Financial Planning

Vehicle O&M

Real Estate & Housing

Mgmt.

Building & Facilities

O&M

General Safety

Documentation &

Publications

Training & HR

Development

Communication &

collaboration

Employee Affairs

Medical affairs

department

Policies and HR planning

Organization &

Structuring

Structure Design &

Development

Jobs & Careers

Development

Process

Reengineering

Administrative affairs

and follow-up

Recently moved

within HR&C (before

under BoD)

Certain

functions are

core corporate

Considerations in

previous slides


Roles and responsibilities of the Contracts & Dev. Accounts function should be reconsidered

GECOL organization / management structure

14

Tenders & Contracts

Customs Clearance

Projects Accounting

L/C's Financing

Contracts & dev. Accounts function6

Contracts

& Dev. AccountsLegal Affairs

Transmission

Projects

Planning

Studies & Dev.

Generation

Projects

Distribution

Projects

Managing

Director

MD Office

Public

Relations

Follow-up

Strategic Plan PMO

Southern Experts &


Consultants Office

Eastern Experts &

Cons. Office

Performance

Monitoring and

Follow-up

BoD Affairs


Board of

Directors

Support

Services

Business

Operations

Network

Operations

Procurement

& Stores

HR & Communication

General Services

Financial Affairs

Distribution

Consumer Services

MV Networks

Generation

Transmission

ICT

Control

Includes activities that

pertain both to finance

and procurement

Department is apparently not directly

responding to MD:

• Reports to the Libyan government

(function was originally part of the duties of

the Ministry in 2005)

• Communicates directly with the projects

departments

• Has duty to manage GECOL CAPEX

budget (completely separated from

GECOL operating budget and outside of

GECOL FS: once project is finalized, a

committee is formed to transfer the Asset

to GECOL’s FS, with parallel equity

increase)1

1) In addition to the CAPEX committee, the management of CAPEX and its related transfer in GECOL balance sheet is also subject to the approval of a General Auditor Bureau

and financial controller of the state treasury; for the past 3 years, no CAPEX committee took place (with consequent no transfer of assets within GECOL FS)


The BoD is unusually staff-intensive and has responsibilities that are not typical for such entity

Direct reports to BoD

Board of Directors

Performance Monitoring

and Follow-up

Internal Control General

Dept.Media Dept.

Assistant Manager Office

Publishing

BoD Affairs

Awareness and rationalization

Documentation

Media

Managing director

Source: Latest up-date of GECOL company organization chart 2015 (June 2017); GECOL data collection ID17

Financial Inspection

Investigation & Complaints

Administrative Inspection

Internal Auditing

Customer Services

Inspection

Technical Inspection

Administrative Affairs &

Services

Archives

Meeting Affairs

Follow-up & Computer

Records

Secretarial Office




Administrative Affairs Office

Projects inspection

Advertising

15

Misalignment of MD-BoD responsibilities7

Activities performed

pertain to finance and

not to BoD core

responsibilities

Unusually staff-

intensive

~600 FTEs


In summary, a number of organizational issues seem to limit GECOL’s efficiency and effectiveness

Summary of issues

Criteria for the assessment of GECOL’s operating model

Identified Issues

Clearly defined

operating

model

Alignment vs.

best practices

Results

accountabilityEfficiency

Preparation

for future

evolution

Alignment

with Strategic

Priorities

BU “concentration” ! ! ! !Limited levers for effective

BU management ! ! ! ! !Fragmentation of

engineering & projects ! !Lack of a strong AFC

function ! ! ! ! !Sub-optimal set-up of ICT ! ! ! !HR&O responsibilities

partially outside MD area ! ! ! ! !Unclear role of Contracts &

Development Accounts ! ! !BoD overstaffed and

including functions

typically under MD! ! ! ! ! !

16

I

1.1

1.2

3

4

5

6

7

II III IV V VI

Target organizational dimension negatively impacted by related identified issue!

2


GECOL shall consider a phased approach to evolve its “Operational Units” into (Strategic) Business Units

18

Recommendations for institutional development

BU “concentration”

Limited levers for

effective BU management

Fragmentation of

engineering & projects

Lack of a strong AFC

function

Sub-optimal set-up of ICT

HR&O responsibilities

partially outside MD area

Unclear role of Contracts

& Development Accounts

BoD overstaffed and

including functions

typically under MD

Creation of separate Business Units / Strategic Business Units

Development strategyIssue identified

Network

Operations

1.1

1.2

Business

Operations

Impacted unit Recommendation

Short term(1-3 years)

Long term(>3 years)

• Separate generation and

transmission (3 BUs)

• Transform into separate BUs,

with full accountability on

technical and financial

performance

• Move the Communications unit

from ICT to the Transmission

BU

• Split into 3 SBUs, fully

accountable:

– Generation

– Transmission

– Distribution & Supply

• Incorporate within each BU

(now SBU) its related Projects,

planning studies &

development functions

Deep-dived in

following slide

Transmission

Projects

Planning

Studies & Dev.

Generation

Projects

Distribution

Projects

Contracts &

Dev. Accounts

Wave I Wave II


Strategic Business Units

In the short term GECOL shall separate Generation and Transmission to achieve full performance accountability

Recommendation deep-dive

19

O&M &

technical

affairs

• Execute operation of assets and/or

installations

• Execute investigations and analyses

• Analyze technical support

• Coordination and execution of

maintenance

• Resolution of day-to-day tech. problems

Example of typical activities

Operations Management &

Planning

• Manage budget spending

• Personnel staffing and deployment

• Prepare (& submit) budget for approval

• Propose operational targets (KPI)

• Plan O&M strategy

• Take corrective actions to align

performance with objectives

Sales(for supply only)

• Sales and customer relations

• Meter reading

• Customer service

• Billing and collection

Sources: GECOL (company organization chart 2015), Strategy& analysis

Generation TransmissionDistribution

& Supply

Distribution

MV Networks

Consumer

Services

Generation Transmission

Control

MD

Communication

Wave I


A BU-based organization would be aligned with regional benchmarks of integrated utilities (e.g. Morocco)

Regional benchmark

CEO

Internal

Audit

Security,

Environment

and Quality

Communication

Operations

Control

DevelopmentFinance and

Commercial

Business

Units

HR, Comm. &

Procurement

Strategy and

Planning

Projects

Program

Production

Hydro &

Renewables

Direction

Gas Projects

Direction

Engineering &

Realization

Projects

Participation &

Partnerships

Management

Control

Risk

Management

Legal Affairs

IT

Sales &

Marketing

Financial

Management

Training and

Competences

Development

Communicati

on Media

Procurement

HR DistributionTransmissionProduction

Operations

Gas Turbines

Renewables

Operations

Operations

Kénitra

Operations

Mohammedia

Operations

Jerada

Engineering

Transportations

Projects

System

Operations

Regional

Transmission

Rural

Electrification

Regional

DistributionRegional


Distribution

Regional

TransmissionRegional

Transmission

Source: ONEE corporate website, Strategy& analysis

Corporate Center

Business Units

Shared Services

Regional Units

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream P

Downstream P

No. of

departments

No. direct

reports to CEO

Corporate

Center4 4

Business

Units3 1

Shared

Services3 3

Total 10 8

Business Model

Organizational Model

Headquarter Casablanca

Footprint National

Employees 9,148

Revenues (2015) 2,732 $Mn

20


International benchmarks (e.g. Greece) have already progressed with the legal unbundling of TSO and DSO

Board of Directors

CEO

Strategy

Department

Legal

Department

Corp. Affairs &

Communication

Energy Trading

Department

Office of the

Executive

Internal Audit

Media Relations

Deputy CEO Deputy CEO

Generation DivisionFinance

DivisionHR Division Mines DivisionSupport

OperationsSupply Division

Accounts

Department

Financial

Planning &

Control Dept.

Risk

Management

Department

Investor

Relations &

Treasury Dept.

HR &

Organization

Dept.

Training

Department

Occupational

Health & Safety

Dept.

Materials &

Purchasing

Dept.

IT Department

Facilities & Real

Estate Services

Dept.

Tests,

Research &

Standards

Mines Central

Support Dept.

Megalopolis lignite

center

W. Macedonia

Exploitation

W. Macedonia Ops.

Support

Gen. Planning &

Performance Dept.

Generation HR

Department

Generation

Environment Dept.

Thermal Projects

Eng. Construction

Thermal Power

Plants Operations

Hydroelectric

Generation

Generation Material

& Purchasing

Islands Generation

Department

Supply Planning &

HR Department

Large Customers

Department

Retail Dept.

1) Does not include holding subsidiaries IPTO (TSO) and HEDNO (DSO)

Source: PPC Corporate Social Responsibility and Sustainability Report 2015, Strategy& analysis

No. of

departments

No. direct

reports to CEO

Business

Units3 1

Support

Services9 8

Total 12 9

International benchmark1

Business Units

Support Services

Regional Units

21

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream P

Downstream P

Business Model


Headquarter Athens (Greece)

Footprint National

Employees 10,431



Structuring the organization under separate BUs would also lay the foundations for the future unbundling process

Typical unbundling phases

Management

Unbundling Partial Full

Accounting

Unbundling

Ownership

UnbundlingFully Integrated

No

unbundling

Fully

unbundled

Fully integratedFully integrated

Generation

Transmission

Distribution

Supply

Shared Services

BU

Genera

tion

BU

Tra

nsm

issio

n

BU

Dis

trib

ution

BU

Tra

din

g

BU

Supply

BU

Share

d S

erv

ices

Partially

Integrated Group

BU

Genera

tion

BU

Tra

din

g

BU

Supply

BU

Share

d S

erv

ices

TSO

Holding

Generation Co.

TSO

DSO

Trading Co.

Supply Co.

S.S. Co.

Holding A

Generation Co.

Trading Co.

Supply Co.

S.S. Co.

Holding B

TSO

Supply Co.

BU

Dis

trib

ution

• Separate accounting

• Clear allocation of

costs (transfer prices)

• Full accountability of

performance

• Creation of BUs still

managed by the

integrated company

• Full responsibility on

P&L and operational

performance

Spin-off of TSO /

DSO as separate

legal entities (with

assets remaining

within a single holding

balance sheet)

The holding manages

different separated

legal entities

TSO/DSO ownership

is separated from other

activities

Fully integrated

Generation /

Transmission

Distribution /

Supply

Shared

Services

• Highly concentrated

• No BUs

• No separate

accounting

• United accountability

22

Legal unbundling

Progressive Liberalization


In short term, GECOL may create a core corporate Engineering & Projects center of excellence

23

Recommendations for institutional development


Limited levers for


Fragmentation of



function






BoD overstaffed and

including functions

typically under MD

Progressive creation of an Engineering & Projects Center of Excellence

Transmission

Projects

Planning

Studies & Dev.


2Generation

Projects

Distribution

Projects

6


Long term(>3 years)

• Group all “Projects”

departments in a single

Engineering & Projects (E&P)

function with full accountability

to deliver major projects

– Synergies among

Gen/Trans./Distr. (on

revenues, capabilities, etc.)

– Planning, Studies & Dev.

included in the function, to

support strategic analyses,

FS and project planning

• Projects assigned to their

related SBU to increase

technical accountability

• Except for the strategic

planning (AFC function),

Planning Studies & Dev. are

assigned to each SBU

• Contracts & Dev. Accounts

related activities assigned to

their natural owners:

–Tenders & contracts to

Procurement (services)

–L/C Financing and Strategic

Planning to AFC

Contracts &

Dev. Accounts1

1) Remains standalone (as of today) until the AFC function is not fully established


Wave I Wave II

Deep-dived in

following slide


A centralized Eng. & Projects dpt. will be key to speed-up the projects/investments implementation in the short term


24

Corporate Core

MD

Generation

Projects

Transmission

Projects

Distribution

Projects

Steam Plants

Projects

Gas & CC

Plants Projects

Projects

Follow-up

Imports &

Stores

Area Distr.

Projects

Development

Projects

Engineering

Dept.

Planning

Studies & dev.2

Eco. Research

& Studies

Standards &

New Tech.

Technical

Planning

Tech. Res.

& Studies

Engineering &

(major) Projects

Substations

Projects

Net. & cables

projects

Engineering

Projects

accounting1

Planning & Budgeting

Engineering

• Support MD, BUs, AFC and Government

in planning and budgeting activities

related to projects

• Evaluate projects economics

• Act as “owner’s engineer” in relationships

with EPC contractors

• Project management services

• Supervise projects implementation

• Monitor projects budget realization

• Manage and control project specification,

schedule, quality, contract and

construction costs

• Drive operation and construction

excellence across projects

• Obtain permits and ensure regulatory and

legal compliance throughout projects

implementation

• Develop projects reports for MD

Project Management

Services

(Tracking, control, etc.)


• Promote innovation

• Perform engineering and technical

support to business

• Assess maintenance needs and performs

reliability studies

1) From Contracts and development accounts department; 2) Strategic Planning from Planning Studies & dev. is moved under AFC function;


Wave I Wave II


Corporate Core

Strategic Business Units

… However, in the long run higher synergies might be realized if SBUs have full responsibility over projects


25

MD

Generation TransmissionDistribution &

Supply

Projects Follow-up

Imports & Stores

Area Distr. Projects

Development Projects

Engineering Dept.

Distribution

MV Networks

Consumer

Services


Control

Generation

Projects

Transmission

Projects

Distribution &

Supply Projects

Planning studies &

dev.

Planning studies &

dev.

Planning studies &

dev.

Steam Plants

Projects

Gas & CC

Plants Projects

AFC

Strategic planning


Wave I Wave II


Support

ServicesCorporate Core

Contracts and Development Accounts activities will be assigned to their natural owners across different functions

26

Contracts and

Development Accounts

Assistant to GM for

administration

Customs clearance

LC’s and finance

Projects Accounting

Tenders and

Contracts

Assistant to GM for

development

Engineering &

(major) ProjectsAFC

Support

Services

Projects

AccountingLC’s and

finance

Customs

clearance

Procurement

Tenders and

contracts

MD MD

As is Contracts & Development Accounts

Department structure

To be split of activities across functional

owners

Strategy& analysis

Activities

related

to AFC

Activities

related

to E&P

Activities

related

to procurement


Wave I


GECOL shall gradually create a strong Accounting, Financial management & Control core function

27

Recommendation for institutional development


Limited levers for


Fragmentation of



function






BoD overstaffed and

including functions

typically under MD

Creation of an Accounting, Financial management & Control (AFC) core function

Contracts &

Dev. Accounts

Planning

Studies & Dev.

Performance

Monitoring &

Follow-up

Financial

Affairs


3


• Move and group the Performance Monitoring general department

(from BoD) and the core function activities of Financial Affairs (e.g.

Financial Planning and Financial Reporting departments) into a new

Accounting, Financial management and Control core function

• Consolidate into the AFC general department all the remaining

financially-related core functions:

– Strategic planning from the “former” general department “Planning

Studies & Development”)

– L/C financing and Projects Accounting from the general

department Contracts & Dev. Account)


Wave I

Deep-dived in

following slide


In the short term, the AFC function (and CFO) will become fully accountable for GECOL’s financial viability

28

• Establish financial strategy and policies

• Perform capital structuring activities

• Engages and finalizes CAPEX budget

with Government (in alignment with MD)

Treasury

StrategicFinance

Strategic Accounting

Budget, Planning

and Control

• Design accounting policies, procedures

and guidelines

• Lead accounting and financial reporting

• Consolidate and monitor budget strategy

and planning development

• Supervise / monitor BU budget

management and control

• Assess financing solutions

• Develop expenditure management policy

and standard operating procedures for

BUs

• Manage cash flows

Example of typical activitiesMD

Strategic

PMO

• Monitoring strategic plan KPI / scorecard

• Tracking & up-date strategic plan

Corporate Core Support Services

AFC

CFO

Contracts &

Development

Accounts

Financial planning &

reporting1

Strategic Planning

Performance

Monitoring

& Follow-up




Administrative

Affairs Office

General ledger &

financial reports

Financial Planning

L/C’s Financing

Strategic

PMOProcurement

General services

Support

Services

HR support

Accounting


Materials accountingFixed assets &

insurance

1) Includes corporate core activities from Financial Affairs (i.e. Ledger and Financial reports and Financial Planning); Sources: GECOL (company organization chart 2015),

Strategy& analysis

Customs clearance

Wave I


ICT should have a core corporate role within the organization

29



Limited levers for


Fragmentation of



function






BoD overstaffed and

including functions

typically under MD

Creation of a higher-profile ICT cross-functional general department

ICT


4


• Adjust the ICT function profile by:

– Create a higher-profile ICT general department (and CIO)

standalone from any BU, fully accountable for strengthening

GECOL ICT resources and the provision of IT services across all

BUs

– Move the ICT function away from the Network operations business

unit into an ICT corporate core department with direct report to the

MD (led by a CIO)

– Move the Communications unit from ICT to the Transmission SBU

– Move the Telecommunication unit within the newly created ICT

function

Wave I


Communica-

tions

Deep-dived in

following slide


Corporate Core

The ICT (and CIO) core function shall be accountable to provide ICT services and strengthen its resources

ICT CenterNetworks

Technical Support

ERP Follow-up

Digital Information

& DocumentationInfrastructure

30

• Perform maintenance of IT

hardware/software

• Manage the IT application system

• Manage IT supplier relationships and

contracts

• Formulate IT policies and standards

• Perform IT planning & budgeting activities

• Design IT strategy & procedures

• Ensure business continuity

• Conduct IT quality assurance

• Plan and manage IT development in

alignment with corporate objectives

• Ensure service efficiency for user

workplace, telephony, printer services,

etc.

• Users requests / issues resolution

• Manage internal and external IT

communications

Methods and Communication

Software and Applications Management

End-user Services

Architecture and

Infrastructure Management

and Development


ICT

MD

CIO

• Ensure IT system deployment

• Conduct ERP implementation

ERP

Follow-up

From Network

Operations


Telephones

From BoD


Wave I


GECOL shall create a HR “core” function under MD control

31



Limited levers for


Fragmentation of



function






BoD overstaffed and

including functions

typically under MD

Establishment of an HR&O core function

HR &

Communication


5


• Move “Organization and Structuring” functions of the HR &

Communication department under the MD responsibility (creating a

new HR&O general department)

• Consolidate into the HR&O general department all the remaining HR-

related core functions:

– Policies & HR Planning from the general department “HR &

Communication” within “Support Services Organizational Unit”

• Leave the non-core HR activities within “Support Services

Operational Unit”

Wave I


Deep-dived in

following slide


In the short term, the HR&O function will be accountable for GECOL operating model effectiveness

32

MD

Corporate Core

HR&O

HR &

Communication

Organization &

Structuring Dept.

Structure Design &

Development

Jobs & Careers

Development

Process

Reengineering

Policies and HR

Planning Department

Training & HR

Development

Support Services

Procurement

General services

Support

Services

HR support

Employee Affairs

Medical affairs

department

Comm. &

collaboration

Accounting

Organization Design

Planning & Staffing

Compensation

• Design organizational structure to deliver

against strategic objectives

• Manage corporate culture and change

management

• Manage manpower planning and ensure

organization effectiveness

• Establish recruiting policies and procedures

• Set compensation and payroll policies

• Design benefits structure


Talent development

• Pursue career development planning and

talent management

• Establish training policies and procedures



Wave I


Services

Reorganization in wave I will create a Support Services unit, accountable for different support transactional activities

Procurement General services

Procurement

Stores

Vehicle O&M

Building &

Facilities O&M

Documentation &

Publications

Real Estate &

Housing Mgmt.

General

Safety

Tenders &

Contracts

Support

Services

33

Customs

Clearance

Procurement

• Manage purchasing and material storage

• Pursue vendor management and

contracting services

• Monitor commodity prices and align

strategy to get optimum pricing

• Perform maintenance activities of offices

and facilities

• Handle housing and building management

and maintenance

• Transportation services and vehicles O&M

• Employees security / safety

Others


MD

HR support

Employee Affairs

Medical affairs

department

Comm. &

collaboration

Accounting

Accounting

FA & Insurance

Materials

Accounting

• Administer compensation and payroll

services

• Implement health and safety measures

• Execute internal communication and

collaboration initiatives

HR

support

• Preparation of financial reporting

• Costing accounting / general accounting

• Customer invoicing and collection of accounts receivable

General Accounting

Services



Wave I


AFC, ICT and HR&O as separate “core corporate” functions are also an international standard

International benchmark

Chairman

CEO

Admin &

Financial

ControlHR and

OrganizationRegulatory,

Environment &

Innovation

Communication

European

Affairs

Internal Audit

Legal and

Corporate

Affairs

BoD

Global ICTGlobal

Procurement

Upstream Gas

Infrastructures

and Global

network

Global

GenerationGlobal Trading

Renewable

Energy

ITALY

IBERIA

LATIN

AMERICA

EAST

EUROPE

Source: Enel Sustainability Report 2015, Strategy& analysis

Electricity Gas

Generation /

Up-stream P P

Transmission /

Mid-stream

Downstream P P

No. of

departments

No. direct

reports to CEO

Corporate

Center7 7

Business

Units5 5

Shared

Services2 2

Total 14 14

Business Model


Headquarter Rome (Italy)

Footprint Multinational

Employees 67,914

Revenues (2015) 84,064 $Mn

Corporate Center

Business Units

Shared Services

Regional Units

34


Finally, GECOL shall focus on adjusting (and right-sizing) its BoD

35


Limited levers for


Fragmentation of



function






BoD overstaffed and

including functions

typically under MD

Adjustment (and right-sizing) of BoD role & responsibilities

Performance

& Monitoring

Current unit /

function


7


Long term(>3 years)

• Streamline & right-size BoD, re-

allocating the non-typical

functions (Performance &

Monitoring)

• Creation of a leaner and more

efficient BoD, including a new

ad-hoc general department

dealing with Regulatory and

Institutional Relations themes

Regulatory &

Institutional

Relations



Wave I Wave II

Deep-dived in

following slide


In the longer term, the BoD shall reflect a leaner and more effective structure, set-up in four units

Option deep-dive

36

Corporate Governance

Strategic Leadership

Capital

Identity

• Review and approve corporate

governance mission and structure

• Conduct and approve the assessment

of MD performance

• Review, validate and monitor level 1

appointment, compensation and

development

• Formulate strategic objectives

• Review and approve corporate strategy

and values, and ensure alignment

• Agree on / set capital spending criteria

and parameters

• Approve capital and operating plan and

major investments and divestitures

• Develop corporate image that fits with

the company’s values and communicate

identity to the public and employees

Audit

(& compliance)

• Conduct active auditing on BU

(financial, technical, administrative, etc.)

• Define policies and procedures


BoD

Regulatory & Inst.

relationsMedia BoD Office

Internal

Audit

Financial

Inspection

Investigation &

Complaints

Administrative

Inspection

Internal Auditing

CS Inspection

Technical

Inspection

Projects

inspection

Assistant

Manager Office

Publishing

Awareness and

Rat.

Documentation

Media

Advertising

Adm. Affairs &

Services

Archives

Meeting Affairs

Follow-up &

Comp. Records

Secretarial

Office

NEW


Wave II


Corporate Core

Business

Units

Services

In the short term the reorganization will create 4 corporate core units, 3 BUs and separate Support services

GECOL to be organization (2021)

Support

Services

Legal Affairs

Distribution &

SupplyGeneration

Procurement

HR support

General Services

Accounting

Managing

Director

MD Office

Public Relations

BoD Affairs

Media

Internal Control

Board of

Directors

1) Includes corporate core activities from Financial Affairs (i.e. General ledger and financial reports, Financial Planning and Fixed assets and insurance); 2) Strategic Planning unit

from the Planning Studies & development division; Sources: GECOL (company organization chart 2015), Strategy& analysis

E&P

Transmission

Planning Studies & dev.

Transmission projects

Generation projects

Distribution projects

AFC

ICT

Telephones

ICT Center

Networks

Technical SupportERP Follow-up

Digital Inf. & Doc.

Infrastructure

Communications

Performance Monitoring

and Follow-up

Financial planning &

reporting1

Strategic Planning2

Contracts & Dev, accounts


Control MV Networks

Customer

Service

37

Projects Accounting

Strategic PMO

Distribution

Follow up

Experts and

consultants office

HR & O

HR & Communication

Organization & Structuring

Dept.

Reorganization

changes to be

further deep-dived

Wave IIWave I


After the first reorganization GECOL will decide between embedded or shared support services

Source: Strategy& analysis

38

Wave II reorganization options

Embedded support services Enterprise shared services

Clustered shared services separated from corporate

core and BUs in order to outsource non value added

activities in the near future

Move shared services units below business units to

empower BU managers and prepare for an holding

structure

Option 1 Option 2

Organizational structure 2021

OR

Business Units


Supply

Embedded support services

Generation

Procurement

Transmission

ProcurementDistribution & Supply

Procurement

Generation HR

Services

Transmission HR

ServicesDistribution & Supply

HR Services

Generation

Accounting

Transmission

Accounting

Distribution & Supply

Accounting

Generation General

Services

Transmission

General Services


General Services

Enterprise shared

services

Business Units


Distribution &

Supply

Procurement

HR Services

General

Services

Accounting

Corporate Core

AFC ICTHR &

Organization

MD

Wave IIWave I

Option 1

Option 2


Corporate Core

Business Units

If the embedded support services option is selected the organization will be more compact with more powerful SBUs

MD

AFC ICT

MD Office

BoD

HR &

Organization


Supply

BoD Office

MediaInternal

Control

Legal Affairs

GECOL embedded support services organization (2024)

Regulatory & Inst.

relations


39

Generation

Procurement

Transmission

ProcurementDistribution & Supply

Procurement

Generation HR

Services

Transmission HR

ServicesDistribution & Supply

HR Services


Accounting

Generation General

Services

Transmission

General Services


General Services

Generation

Accounting

Transmission

Accounting

Wave IIWave I

Option 2

Option 1


Shared Services (SS)Corporate Core (CC)

Strategic Business Units (SBUs)

On the other hand, if the shared support services is selected a clear division of roles between CC, SBUs and SS will emerge

MD

AFC ICT

MD Office

BoD

HR &

Organization


Supply

Support

Services

BoD Office

MediaInternal

Control

Procurement General Services

HR Services Accounting

Legal Affairs

GECOL enterprise shared services organization (2024)

Regulatory & Inst.

relations


40

Wave IIWave I

Option 2

Option 1


A quick benchmarking study aimed to clarify six organizational design matters for GECOL

Organizational design topics assessed

Are shared services consolidated in dedicated functional units providing support activities to all

business units?

Are projects/engineering placed within BUs or separated under a dedicated EPC/Engineering

functional centre?

How it is normally structured and to who it normally responds the procurement function of a utility

firm?

How are the business units of a utility company typically set-up? Is it a standard practice to group

different activities into an integrated BU (e.g. transmission with generation)?

Business Units

separation

Is the ICT typically organized as a separate department or is it consolidated within other support

services/business units?

Who normally owns the responsibility of organizational structure? BoD, CEO or the separate HR

unit?

Focus Initial questions / Benchmarking objective

Shared Services

consolidation

Core corporate

role of projects /

engineering

Procurement

function

Standalone ICT

Organizational

structure function

42


The company sample analyzed varied in size, geographical spread and value chain focus…

68,000

14,000

12,000

6,000

0

66,000

8,000

4,000

2,000

10,000

0 500 1,000 2,5001,500 84,500

2,000CEGCO

Size (#FTEs)

Revenues (Mn USD)

ONEE

PPC

ENEL

GPDCo JEPCO

MJEC

SEC

STEG

Generation TransmissionDistribution

&Sales

Enel P P

PPC P P P

ONEE-BE P P P

CEGCO P

JEPCO P

STEG P P P

SEC P P P

MJEC P

GPDCo P

Source: Corporate Annual Reports, Corporate websites, Strategy& analysis

National Footprint International Footprint

Regional benchmark sample size Electricity value chain focus

43


… Each at different stages of maturity in terms of unbundling process

Unbundling evolution stages

No

unbundling

Fully

unbundled

Management

Unbundling

Partial

Legal Unbundling

Fully

Legal Unbundling

Accounting

Unbundling

Ownership

UnbundlingFully integrated

ONEE-BE

STEG

JEPCO / CEGCO

SEC

EHC1

PPC2

ENEL

1) The Electricity Holding Company SAOC (EHC) is a joint stock company that holds the Government’s shares in eleven companies engaged in the procurement, generation,

transmission and distribution of electricity and related water services (among which MJEC and GPDCo)

2) PPC SA holds 100% stakes in both IPTO S.A, responsible for the management, operation, maintenance and development of the Hellenic Electricity Transmission System and its

interconnections, and HEDNO S.A., responsible for the management, operation, development and maintenance of the Hellenic Electricity Distribution Network

Source: Corporate Annual Reports, Corporate websites, Strategy& analysis

Accounting

unbundling

(minimum requirement)

BU managed by the

integrated company -

Still one legal entity

2 legal entities,1 solely

focuses on TSO

management. Assets still

on the holding balance

sheet

The holding manages

different separated legal

entities

Network ownership is

separated from other

activities

BUs integrated managed

by the integrated

company – no separate

accounting

44


The quick benchmarking study results in number of useful takeaways

Organizational benchmarking results

Shared services are always separated from BUs and are either consolidated under the leadership of

a deputy CEO or kept in separate functional departments under different managers

Projects / engineering are normally found within dedicated EPC centres OR Business Development

departments. However, they are also found within their respective BUs

Procurement is normally found either within the supply chain & logistics general department, within a

technical support general department, or when present, within a dedicated EPC / engineering centre

Number of BUs normally matches the number of core value chain operating activities performed by

the company (e.g. merge between transmission and generation is not common practice)

Business Units

separation

Industry standard is to organize ICT as a separate support service core function or general

department. Sometimes ICT is also consolidated within the finance department

Organization structure function is normally a responsibility of the CEO /MD through an HR &

Organization core function

Focus Lessons learnt from organizational benchmarking

Shared Services

consolidation

Core corporate

role of projects /

engineering

Procurement

function

ICT general

department

Organizational

structure function

45


ENEL

Chairman

CEO

Admin &

Financial

Control

HR and

Organization

Regulatory,

Environment &

Innovation

Communication

European

Affairs

Internal Audit

Legal and

Corporate

Affairs

BoD

Global ICTGlobal

Procurement

Upstream

Gas

Infrastructures

and Global

network

Global

Generation

Global

Trading

Renewable

Energy

Italy

Iberia

Latin America

East Europe

Source: Enel Sustainability Report 2015, Strategy& analysis

Electricity Gas

Generation /

Up-stream P P

Transmission /

Mid-stream

Downstream P P

No. of

departments

No. direct

reports to CEO

Business

Units5 5

Support

Services9 9

Total 14 14

Business Model


Headquarter Rome (Italy)

Footprint Multinational

Employees 67,914

Revenues (2015) 84,064 $Mn

Unbundling Status

Ownership

Unboundling

Business Units

Support Services

Regional Units

International benchmark

46


PPC

Board of Directors

CEO

Strategy

Department

Legal

Department

Corp. Affairs &

Communication

Energy Trading

Department

Office of the

Executive

Internal Audit

Media Relations

Deputy CEO Deputy CEO

Generation DivisionFinance

DivisionHR Division Mines DivisionSupport

OperationsSupply Division

Accounts

Department

Financial

Planning &

Control Dept.

Risk

Management

Department

Investor

Relations &

Treasury Dept.

HR &

Organization

Dept.

Training

Department

Occupational

Health & Safety

Dept.

Materials &

Purchasing

Dept.

IT Department

Facilities & Real

Estate Services

Dept.

Tests,

Research &

Standards

Mines Central

Support Dept.

Megalopolis lignite

center

W. Macedonia

Exploitation

W. Macedonia Ops.

Support

Gen. Planning &

Performance Dept.

Generation HR

Department

Generation

Environment Dept.

Thermal Projects

Eng. Construction

Thermal Power

Plants Operations

Hydroelectric

Generation

Generation Material

& Purchasing

Islands Generation

Department

Supply Planning &

HR Department

Large Customers

Department

Retail Dept.

1) Does not include holding subsidiaries IPTO (TSO) and HEDNO (DSO)

Source: PPC Corporate Social Responsibility and Sustainability Report 2015, Strategy& analysis

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream P

Downstream P

No. of

departments

No. direct

reports to CEO

Business

Units3 1

Support

Services9 8

Total 12 9

Business Model


Headquarter Athens (Greece)

Footprint National

Employees 10,431


Fully Legal

Unbundling

International benchmark1

Business Units

Support Services

Regional Units

Unbundling Status

47


ONEE-BE

CEO

Internal

Audit

Security,

Environment

and Quality

Communicatio

n

Operations

Control

DevelopmentFinance and

Commercial

HR, Comm. &

Procurement

Strategy and

Planning

Projects

Program

Production

Hydro &

Renewables

Direction

Gas Projects

Direction

Engineering &

Realization

projects

Participation

and

partnerships

Management

Control

Risk

Management

Legal Affairs

IT

Sales &

Marketing

Financial

ManagementTraining and

Competence

s

Developmen

tCommunicat

ion Media

Procurement

HR

DistributionTransmissionProduction

Operations

Gas Turbines

Renewables

Operations

Operations

Kénitra

Operations

Mohammedia

Operations

Jerada

Engineering

Transportatio

ns Projects

System

Operations

Regional

Transmission

Rural

Electrification

Regional



Distribution

Regional

TransmissionRegional

Transmission

Source: ONEE corporate website, Strategy& analysis

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream P

Downstream P

No. of

departments

No. direct

reports to CEO

Business

Units3 3

Support

Services7 7

Total 10 10

Business Model


Headquarter Casablanca

Footprint National

Employees 9,148


Regional benchmark

Business Units

Support Services

Regional Units

Unbundling Status

Management

Unbundling

48


CEGCO

Source: CEGCO Annual Report 2015, Strategy& analysis

CEO

Board of

Directors

COO

Internal Audit

Tendering

O&M Executive

Management

Support

Services

Central

Electric Maint

Central

Mechanical

Maint

Central

Workshop

Planning &

Business

Attraction

Optimization

Directorate

Optimizatio

n

Inventory

Supply

Chain Mgmt

Procureme

nt

Planning

HR

directorate

Compensatio

n & Benefits

Learning &

Development

Organizatio

nal Dev.

Attraction &

Retention

Employee

Relations

IT

HSE

Assets Exec.

Mgmt.

PR& Press

Directorate

Financial

Controller

Finance

Accounting

Risk

Management

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream

Downstream

No. of

departments

No. direct

reports to CEO

Business

Units1 1

Support

Services11 4

Total 12 5

Business Model


Headquarter Amman (Jordan)

Footprint National

Employees 988

Revenues (2015) 638 $Mn

Regional benchmark

Business Units

Support Services

Regional Units

Power

Plants

Unbundling Status

Ownership

Unboundling

49


JEPCO

Source: JEPCO corporate website, Strategy& analysis

General Manager

Board of

Directors

Administrative

Manager

Auditors

General

Accounting

Department

Budget,

Statistics and

Costs

Warehouse

Accounting

Section

Subscribers

Collections

Section

Personnel

Department

Health

Insurance

Section

Workers

Safety

Sections

Amman 1st

Area Dept.

Amman 2nd

Area Dept

Amman 3rd

Area Dept

Zarka Area

Dept

Asst. Technical

Manager for Areas &

Operations

Legal

Consultancy

Internal Audit

Financial

Manager

Salaries

Section

Registry

Computer

Center

Shareholder

Section

Public

Relation &

Information

Transportatio

n Section

Mechanical

Maintenance

Section

Meter

Checking &

Maintenance

Emergency

Section

Electrical

Maintenance

Section

Offices

Maintenance

Section

Supplies &

Warehouse

Department

Issue &

Distribution

of

Subscribers

Bills

Tenders

Section

Asst. Technical

Manager for

Technical Affairs

Transmission

& Execution

Department

Execution

Section

Civil

Engineering

Section

Main Stations

Sections

Asst. Technical

Manager for

Planning & Studies

Planning &

Studies

Department

Monitoring &

Controlling

Center

Training

Section

Electricity Gas

Generation /

Up-stream

Transmission /

Mid-stream

Downstream P

No. of

departments

No. direct

reports to CEO

Business

Units1 1

Support

Services7 5

Total 8 6

Business Model


Headquarter Amman (Jordan)

Footprint National

Employees 2,529


Regional benchmark

Unbundling Status

Ownership

Unboundling

Business Units

Support Services

Regional Units

50


STEG

CEO

Equipment

Direction

HR

Organization

and Information

Systems

Internal Audit

Electricity

Production &

Transmission

Distribution

Gas

Production &

Transmission

Board of

DirectorsStrategic

Planning

Secretary of

the Market

Commission

Cooperation

and external

relations

Central

Services

Department

Electronuclear

Central

Citizens

Relations

Office

Management

Control

Technology

Sales

Financial and

Accounting

Services

IT

General

Affairs

Planning &

Studies

Legal and

Assurance

1) Data refers to 2014

Source: STEG Annual Report 2014, STEG Corporate Website, Strategy& analysis

Electricity Gas

Generation /

Up-stream P P

Transmission /

Mid-stream P P

Downstream P P

No. of

departments

No. direct

reports to CEO

Business

Units4 4

Support

Services17 17

Total 21 21

Business Model


Headquarter Tunis (Tunisia)

Footprint National

Employees 12,7491


Regional benchmark

Fully Integrated

Business Units

Support Services

Regional Units

Unbundling Status

51


Saudi Electricity Company

CEO Internal Audit

Shared

Services

EPCM

Principal Buyer

ISO&Kingdom

Planning

Generation

Transmission

Distr.&Customer

Services

Generation Unit A

Generation Unit B

Generation Unit C

Generation Unit D

Engineering & Projects

MaintenanceTransmission Planning

EngineeringTransmission Operations

Business Support

O&M Systems

Engineering & Planning

Distr.& Customer Serv.1

Retail Services

Business Support

New Business

Development

New Business Dev. Strategy

Investment & Incubation

Investment Management.

Strategic Planning

Finance

HR

Corporate

Services Legal

Public Affairs

Strategic Planning & Economic Analysis

Business PlanningRegulatory Affairs & Perf. Monitoring

R&D

Financial Planning

Corp. Finance & Treasury

Control & Reporting

Corp. Supply Chain

Corporate IT

Investor Relations

Corporate IT

Investor Relations

HR Planning & Policies

Recruit. & Talent Mgmt.

Rem. & Performance

Organization Development

Environment

Quality

Organization Development

Enterprise Risk

Comm. Strategy & Brand

Internal Communication

External CommunicationMedia Communication

Digital Communication

CSR

1) By regions: South, East, Central, West and North

Source: SEC Generation Contractors Summit 2015, SEC Annual Report 2015, Strategy& analysis

Front Office

Back Office

Business Support

Engineering

Procurement

ProjectsEPCM Business Support

Kingdom Planning

System Operation Planning

Trading

Fuel Supply & Agreements

IPP & Renewables Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream P

Downstream P

No. of

departments

No. direct

reports to CEO

Business

Units3 3

Support

Services12 12

Total 15 15

Business Model


Headquarter Riyadh (KSA)

Footprint National

Employees 37,769

Revenues (2015) 10,931 $Mn

Regional benchmark

Business Units

Support Services

Regional Units

Fully Legal

Unbundling

Unbundling Status

52


Majan Electricity Company (MJEC)

Source: MJEC Annual Report 2015, Strategy& analysis

Board of Directors

CEOLegal Affairs

Regulatory &

Planning

Corporate

Planning

Regulatory

Compliance

HSSE

HR & Admin.

Affairs

Compensatio

n & Benefits

Learning &

Development

Talent

Management

Admin.

Affairs-

Muscat

Admin.

Affairs-NB

Admin.

Affairs-Ibrl

HR

Operations

Section

Financial

Control

Finance

IT

Performance

Reporting

Planning &

Asset Mgmt.

Network

Planning

Asset

strategy

Control

Center

GIS

Customer

Affairs

Projects

Procurement

Contracts

Distribution

O&M

O&M

Distribution

NB

Distribution

Al.Buraimi

Technical

Advisor

Employee

Relation

Communicati

on &

Branding

International

Audit

Design

Distribution

DH

Technical

Services

Regional benchmark

Electricity Gas

Generation /

Up-stream

Transmission /

Mid-stream

Downstream P

No. of

departments

No. direct

reports to CEO

Business

Units2 2

Shared

Services8 8

Total 10 10

Business Model


Headquarter Muscat (Oman)

Footprint National

Employees 409


Business Units

Support Services

Regional Units

Fully Legal

Unbundling

Unbundling Status

53


Al Ghubrah Power & Desalination Company

Source: Al Ghubrah Power & Desalination Annual Report 2015, Strategy& analysis

Board of Directors

CEO

Legal Advisor

HSSE

Compliance

Regulatory

Compliance

HSE

Technical

Support Dept.

Asset

Management

Planning

Quality

Risk

Management

Security

InventoryProjects/Deco

mmissioning

Projects

Decommissio

ning

Procurement

Section

Plant

Consumable

Plant Spare

Procurement

Admin.

Procurement

& Proc. Office

Plant

Operations

Maintenance

Dept.

Mechanical

Section

Electrical

Section

I&C section

Service &

Corrosion

Section

Operations

Dept.

Operations

Section

Chemical

Section

Performance

Finance

Department

Accounts

Mgmt. Report &

Budget

HR & Support

Services

HR Section

Admin.

IT

Communication

Electricity Gas

Generation /

Up-stream P

Transmission /

Mid-stream

Downstream

No. of

departments

No. direct

reports to CEO

Business

Units2 1

Support

Services7 4

Total 9 5

Business Model


Headquarter Al Azaiba (Oman)

Footprint National

Employees 224


Regional benchmark

Business Units

Support Services

Regional Units

Fully Legal

Unbundling

Unbundling Status

54

task c: institutional development - world bank€¦ · 2.1 source: task c inception report review...

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