<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal;
font-family:"Arial","sans-serif";
color:windowtext;}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Dear Harry and Listers – Thanks for welcoming me to this forum.
I will do my best to respond to your various questions. Please my answers to
your questions Harry, interspersed in your questions below [in brackets].<o:p></o:p></span></p>
<p class=MsoNormal><a name="_MailEndCompose"><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></a></p>
<div>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
kictanet-bounces+mugo=vision2030.go.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+mugo=vision2030.go.ke@lists.kictanet.or.ke] <b>On
Behalf Of </b>Harry Delano<br>
<b>Sent:</b> Tuesday, December 13, 2011 8:45 AM<br>
<b>To:</b> Mugo Kibati<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> Re: [kictanet] Vision 2030: ICT and Other Sectors Converged
(Day 1)<o:p></o:p></span></p>
</div>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>Dear Listers – Ladies and gentlemen,</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>Good morning, and herein lies an opportunity to take part in
shaping what should be a very important vision for <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>this nation. I personally trust that opinion and important
suggestions here are of huge value, and that it is not late <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>for the Vision 2030 Team to incorporate some in their blue
print, and also that this blue print has inbuilt flexibility<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>to make adjustments as much as it is desirable as we move
forward to implement. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>Dear Mr. Mugo Kibati,</span><span style='font-size:10.0pt;
font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>Welcome on board, and as a vision for this country, we
congratulate the team for being bold. I believe the forum here <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>will focus heavily on the ICT Sub-sector. But, just as the
Vision 2030 correctly correlates interdependence between different<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>projects on the map, we will not hesitate to point out that ICT
needs the rest as enablers, just as the rest needs it.</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'> <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>My first question is, what are the clear bench marks to achieve
the stated vision for the country, looking at the project</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>pillars listed? How do we measure and audit achievements
to date to ascertain whether this ship is on course..?</span><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>[That’s a good question. There are indeed clear targets for the
various flagship projects. The level of specificity and clarity varies of
course from project to project. In areas such as, say roads, where there is
substantial past experience, the targets are clearer. In areas which are new to
us and there are several – e.g. Special Economic Zones, the Lamu Port South
Sudan Ethiopia Transport (LAPSSET) Corridor, we have to keep refining targets
and timelines. In almost all cases, the actual timelines can only really be
determined after detailed feasibility or engineering designs are complete. At
the Secretariat, we have spent considerable time and effort working on a case
by case basis to streamline targets and to try and force implementation road
maps and funding models for each project no matter how complex or novel to the
implementing agencies. Please visit the website <a
href="http://www.vision2030.go.ke">www.vision2030.go.ke</a> which is a
continuous work in progress to get a feel of the status of the various projects
with respect to set objectives and targets – both medium term as well as long
term. Please note that for this first medium term plan running from July 1 2008
to June 30 2013 the focus is essentially on laying the foundations for Vision
2030 which includes lots of structures, systems, planning and even mindset
change!]<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>We have been on the website checking out the Key pillars and the
enablers;<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'>I note that, under the Macro Enablers section, the project in
which we have had keen interest falls under the heading </span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>“<a
href="http://www.vision2030.go.ke/index.php/projects/details/Macro_enablers/2"
target="_blank"><span style='color:#365F91;text-decoration:none'>Energy
Generation of 2300MW and distributed at competitive prices</span></a>”</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>While the endeavor towards generation of enough power, for
adequate, quality, reliable and affordable energy is </span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>laudable and ongoing, we urgently need to address the question
of “distribution” of the same to go lock-in-step </span><span style='font-size:
10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>with these valiant efforts.</span><span style='font-size:10.0pt;
font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>I believe Energy distribution should be listed as a
“Macro-Enabler”, then this way we can now address the question</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>of the monopolized aspect of it that currently is almost
crippling and reducing the project to naught, at the expense</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>of progress in other project areas. No doubt ICT sub-sector will
be a huge victim.</span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>Left unchecked, a monopolized energy distribution network on
which everything else hinges as we go forward, could </span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>as well be equated to a “national security
disaster-in-awaiting”. Can the team review the objectives in this area to focus
</span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>heavily on this aspect also, and propose, pursue and lobby
unrelentingly towards a de-monopolized energy distribution</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>design. Let this nation have the benefit of redundancy in this
area. Short of this, we are left at the mercy of the current</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>national distributor. At the very best, it might remain a cog in
the wheel of this Vision2030.</span><span style='font-size:10.0pt;font-family:
"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>I would wish to draw the team Vision2030 to the tremendous
success that we’ve all witnessed in the Telecommunication</span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>subsector, since liberalization was introduced from around
2002/3 and competitiveness brought about the huge </span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>dividends that we now reap. We herald this as one of the
greatest turning points in this industry. Let’s go that route in </span><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>the energy subsector.</span><span style='font-size:10.0pt;
font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>[Energy Distribution is indeed under Macro-Enablers and I will
check to see why we haven’t included it. You raise a major philosophical issue
on liberalizing distribution using the success of the Telecom sector as a
benchmark. I do not fault you on that but in other jurisdictions such as the US
where both the Telecom and Energy distribution sectors were liberalized, the
success of the liberalization of energy distribution is in serious question
even while the telecom sector has very successfully liberalized. It could a
matter of methodology and not liberalization per se but it still gives on pause
given that is much more sophisticated and mature liberal market environment. In
any case, unbundling has to be the first order of business, followed by careful
de-monopolization of each component of the bundle. Generation is already liberalized
but not so transmission and liberalization and we are at the nascent stages of
unbundling. Also, please note the Rural Electrification has been hived off KPLC
to the Rural Electrification Authority in bid towards reducing that monopoly
power and for higher efficiency. In the US, states there has been a trend towards
state run distribution monopolies. Please email me a concept note and we can
open up a discussion at the Ministry of energy.]<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'>Harry</span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#365F91'> </span><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
</div>
</body>
</html>