REQUEST FOR EXPRESSION OF INTEREST: ENHANCING ORGANIZATION RISK MANAGEMENT AND INTERNAL AUDITING OF THE EGYPTIAN ELECTRICITY HOLDING COMPANY

The Ministry of Electricity and Renewable Energy (“MoERE”) of the Arab Republic of Egypt has received a financing from Agence Française de Développement (“AFD”) and intends to use part of the funds thereof for payments under the following project: Enhancing Organisational Risk assessment and Internal Auditing of the Egyptian Electricity Holding Company.
In October 2016, the Government of Egypt (“GoE”) has adopted the Integrated Sustainable Energy Strategy (“ISES”) 2035 to modernise the energy sector and increase the renewable energy (“RE”) penetration in the energy mix. This strategy has set the RE targets of 20% of the electricity mix by 2022 and 42% by 2035.
Within this context, the AFD has agreed to allocation a Grant in a maximum aggregate amount of one million five hundred thousand Euros (EUR 1,500,000) to support the MoERE, the Egyptian Electricity Holding Company (“EEHC”), and the Egyptian Electricity Transmission company (“EETC”) in achieving the objectives of the ISES 2035 and developing of the Egyptian Energy Sector. Accordingly, the grant has specified three major targets, (i) enhancing the governance of the energy sector, (ii) optimising the energy use, and (iii) improving energy supply. This Grant is managed and supervised by a project management team within MoERE for the benefit of EEHC and EEHC and the relevant affiliated companies.
EEHC is an Egyptian joint-stock company serving over 37.9 million customers via 6 generation and 9 distribution companies distributed across Egypt. In addition, the transmission system operator, EETC, is also among the affiliated company of EEHC. In line with the ISES 2035, EEHC and its subsidiaries and affiliated companies play an important role towards the achievement a high quality of service, optimising energy supply and use. Accordingly, EEHC has been working actively over the past years on enhancing corporate governance within and between the sector entities.
Several technical assistances and capacities building programs have been developed and delivered to EEHC and relevant stakeholders on corporate risk assessment, internal auditing and other relevant areas of compliance systems and governance. Yet, further support is required to further improve the corporate governance and cope with the current quick transitions in the electricity sector.
The Consultant should be working on two main tasks:
• Task 1: Supporting and enhancing Internal audit departments in EEHC and its subsidiaries including EETC.
• Task 2: Organisation risk assessment and management in EEHC and its subsidiaries including EETC.
In Task 1, the Consultant is expected to support EEHC and its subsidiaries in improving EEHC’s and EETC’s internal auditing via strengthing internal control measures and compliance to the public sector governance standards.
In Task 2, the Consultant is expected to support EEHC and EETC to establish highly-trained Risk Management Teams (“RMT”) which are fully capable of establishing competent Enterprise Risk Management (“ERM”) programs in the fields of strategic, operational, financial, and compliance management. According the Consultant should support EEHC in identification, assessment, and priorisation of risks by risk type.
The Services of the Consultant shall consist of and not limited to the following:
Within the scope of Task 1:
• Assess and review the current Internal Audit practices and activities within EEHC and its subsidiaries;
• Draft recommendations, based on the international best practices, in regards to internal auditing, tools and techniques;
• Develop internal audit policies and procedures based on the performed assessment and recommendations;
• Design an internal auditing reporting framework;
• Develop and deliver two capacity building programs to:
o Audit committees covering the legislative and regulatory requirement, role of audit committees, key governance aspects of audit, risk management and compliance, among others;
o Internal audit department teams covering the theory and practice of internal auditing along with international best practies in auditing.
Within the scope of Task 2:
• Develop a capacity building program for MoERE, EEHC, and subsidiaries’ Risk Assessment Team;
o Assess the current risk management practices;
o Conduct intensive training programs on risk management including, but not limited to: risk assessment criteria, risk interactions, prioritisation and risk hierarchies.
• Develop a complete risk assessment for pilot companies (one distribution, one production, and EEHC);
o Execute risk assessment case studies to evaluate training outcome;
o Provide an implementation support to the selected pilot companies over the project period.

The MoERE of the Arab Republic of Egypt hereby invites Applicants to show their interest in delivering the Services described above.