In the design of Results-Based Financing (RBF) initiatives, consider how unexpected programmatic changes could reduce achievement on Key Performance Indicators (KPIs) and explore strategies to mitigate negative impacts on achievement as needed. The threshold program initially set out to provide technical assistance to the Electricity Generation and Transmission Company (EGTC) to improve its operations and maintenance of two heavy fuel oil power plants that generated electricity to supply Freetown. Initial KPIs for EGTC under the RBF were linked to this focus. However, the introduction of a new independent power producer to the sector lead to the close of the two plants. This major shift in the sector and implementation of the program necessitated corresponding shifts in the RBF for EGTC. The threshold program shifted to focus on training EGTC staff to manage Bumbuna hydro electrical plant, and similarly, the RBF KPIs subsequently shifted focus to this area. The redesign of the program for EGTC reduced the time for the utility to work towards the KPIs and the COVID-19 pandemic disrupted the trainings and corresponding assessments. In addition, while EGTC is slated to take over management of Bumbuna per the EGTC Business Plan, there was much ambiguity about when that would actually happen in order to allow trained staff to put their newly built capacity into practice. These factors likely contributed to lower performance for EGTC, and it could be questioned whether the new KPIs were well-aligned with the reality of the situation in the electricity sector.
Lesson Learned