CHAPTER 321 THE RURAL ENERGY ACT [PRINCIPAL LEGISLATION] . Arrangement of Sections AG f O n o Section Title sioism part i er PRELIMINARY PROVISIONS ut p o ith 1. Short title. d w 2. Application. ibu te 3. Interpretation. ist r d or part ii ce d PRINCIPLES OF RURAL ENERGY DEVrE u odLOPMENT p 4. Principles of Rural Energy Development. e r e b 5. Role of Minister. y ma k part b io o ii ESTABLISHMEN is f thT OF THE AGENCY o 6. Establishment of Agency. art p 7. Objectives of Agency. o N 8. Functions of Agency. ed . rv res e hts part iv EST ArigBLISHMENT OF THE RURAL ENERGY FUND ll 9. Establish A iam. ent of Fund. 10. Mand n zate of Fund. 11. F uTnanding Sources. 12. of nt Special purpose Fund. 1m3e. Management of Fund. ernv 14. Use of Fund. 5 G o 15. Trust Agent. 2 20 16. Annual Accounts. © 59 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] part v ESTABLISHMENT OF THE RURAL ENERGY BOARD 17. Establishment of Board. 18. Composition of Board. 19. Criteria and appointment procedure. G. A 20. Tenure of office of Board Members. of O 21. Meetings and procedures of Board. ion 22. Offense for contravening Authority’s directions. issm 23. Powers and functions of Board. er t p 24. Board’s autonomy. ouh 25. Accountability of Board. it d w ute part vi str ib APPOINTMENT OF DIRECTOR GENERAL, OFFICERS dAior ND STAFF 26. Appointment of Director General, officers and staff. ed uc 27. Functions of Director General. rod 28. Reports. p e r e 29. Immunity. y ba k m SCHEDUoLob ES is f th art o o p d. N erv e s r es igh t ll r . A an ia nz f T a nt o e ern m ov 5 G 02 ©2 60 CHAPTER 321 THE RURAL ENERGY ACT . An Act to establish the Rural Energy Board, Fund and Agency to be AG responsible for promotion of improved access to modern energy services O n o f in the rural areas of Mainland Tanzania and through a Fund within tihsse io Agency and the Board to provide for grants and subsidies to develoeprmers p of rural energy projects and for related and consequential matteour ts . [1istw th July, 2005] [GNt.e Nd o.83 of 2007] Acts Nos. rib u 8 of 2005 t dis 16 of 2007 r ed o c rod u p PARTe rb Ie PRELIMINA RmaYy PROVISIONS oo k b Short title 1. This Act may be cite is thd as the Rural Energy Act. f rt o Application 2. This Act shall oa p aply to Mainland Tanzania. . Nd Interpretation 3. In this Acrvtee , unless the context otherwise requires- “Agencsy r” e smeans the Rural Energy Agency established under seric httg ion 6 of this Act; “anAll . nual report” means the report on the operations of the nia za Agency and Fund submitted by the Director General to an T the Board on an annual basis, and once approved by the f nt o Board, submitted to the Minister; rnm e “Board” means the Board of Directors established under ov e section 17 of this Act; 5 G 02 “capital subsidy” means financial support given to developers ©2 to reduce costs of capital investments; “development partner” means governments, national and international, bilateral and multilateral institutions and organisations contributing to Tanzanian’s development; 61 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] “developer” means a developer of, or an investor in, or an operator of a project, that shall be in the form of a private or public entity, a co-operative, or a local community organisation; “Director General” means the Director General appointed . under the provisions of section 26(1) of this Act to be the OAG Chief Executive Officer of the Agency; of n “EWURA” means the Energy and Water Utility Regulatoirssy io Authority established under the Energy and Weramp ter Cap. 414 Utilities Regulatory Authority Act; ou t “Fund” means the Rural Energy Fund establis hiethw d under d section 9 of this Act and includes financiablu treesources set aside for rural energy development; ist ri d “grant contract” means a contract betwde oern the Board and a qualified developer for the provis ce diuon of a grant; “grant payments” means the sete po rof payments as shall be stipulated in a grant contrac bte; r “grant” means an award of ma moyney by the Fund to a qualified developer for the purp k bo ose of developing and implementing a project; his t “member” means art om f ember of the Board and includes the Chairman; a o p “Minister fored F . Ninance” means the Minister for the time being responsseirb v le for finance; e “Minihsttse rr” means the Minister for the time being responsible fo rirgll energy; “ A iam. odern energy” means energy that is based on petroleum, za n n electricity or any other energy forms that have f T a o commercialised market channels, a higher heating or t en energy content value than traditional biomass fuel, and rnme that which may be easily transported, stored and utilised; ov G “priority projects” means projects that are prioritised for 5 20 2 development by the Agency in its work plans, as approved © by the Board; “project” means the activities and investments associated with the provision of modern energy services in a locality in a rural area of Mainland Tanzania; 62 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] “qualified developer” means a developer that satisfies the criteria for qualification as established by the Board; “rural area” means an area outside an urban authority; “Special Purpose Fund” means a fund established as a . funding instrument under the Fund by special agreement OAG between the Minister and Development Partners; and of n “Trust Agent” means the agent appointed under thseiois provisions of section 15 of this Act. rm t p e u PART II ith o d w PRINCIPLES OF RURAL ENERGY DEV te ribEuLOPMENT di st Principles of 4. The principles of Rural Energy Deveed loorpment shall be as Rural Energy Development follows: c od u (a) modern energy supply to r r reupral areas promotes growth in economic productioyn b eand productivity as well as social welfare; a k m (b) sustainable deve o blo pment shall be achieved when modern energy s f th i services in rural areas are promoted, facilitated arta ond supported through private and commu Nnoi tpy initiative and involvement; (c) the r . voedle of the Government in rural energy service prr er eos vision is that of a facilitator of activities and tsi h nvestments made by private and community entities; (ld ri g Al ) the fulfilment of the Government’s role shall be best a. ni managed through an institution that is independent a an z of, but accountable to, the central organs of the T t o f Government; enm (e) the public institution designed to facilitate rural energy ernv service provision shall have a small core administrative o 5 G capacity, and shall rely on the technical and financial 02 ©2 capacity of qualified private sector entities; and (f) facilitation of rural energy service provision shall take the form of financial support for the capital costs of investments, technical assistance to project preparation, training and other forms of capacity building. 63 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] Role of Minister 5.–(1) Subject to other relevant written laws of the United Republic, the duties of the Minister shall be to- (a) determine and ensure the formulation, co-ordination and application of the national energy policy as relates . to rural Mainland Tanzania; G OA (b) appoint the Board in accordance with this Act; and of n (c) provide guidance of a policy nature to the Board. siois (2) The Minister may, in consultation with the Mipnei rmster for Finance, execute agreements for the purpose of proou tv iding resources to the Fund as provided for in sections 1 1w itahnd 12 of d this Act. uteb (3) The Minister may amend the First andd Sis tericond Schedules to this Act on the basis of recommendatdi o rn s made to him by the Board. ce du (4) The Minister may make reguelpa rotions for the carrying into effect the objects of this Act and b feo rr any matter or thing which by this Act is to be or may be m p ayrovided for by regulations. ok s b o th i PART III f ESTABLaIrSt oHMENT OF THE AGENCY1 No p Establishment of 6.–(1) Thereve ids . hereby established an Agency to be known as Agency the Rural er re sEnergy Agency with the purpose of facilitating the provishitos n of modern energy services in rural areas of Mainland g TaAn i llz rania. nia . (2) The Agency shall be a body corporate with perpetual za an succession and a common seal, and in its corporate name shall f T t o be capable of- enm (a) suing and being sued; ernv (b) borrowing money, acquiring and disposing of property; 5 G o and 2 ©20 (c) doing all such other things as a body corporate may lawfully do. 1 This Part was previously Part IV 64 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (3) The Agency shall be governed by a Board of Directors otherwise known as the Rural Energy Board. [s. 14] Objectives of 7. The objectives of the Agency shall be to- G. Agency A (a) implement the Board’s strategies and decisions in of O fulfilling the mandate of the Board; and sio n s (b) facilitate provision of technical assistance, reseamrier ch and development, training and other forms of cuat p o pacity building to qualified developers by suitabl ith wy qualified experts related to the planning and preutpe daration of a project prior to an application for a gr r isat n ibt. or d [s. 15] ce d Functions of 8.–(1) The Agency shall- u rod Agency (a) act as the executive body arnepe d Secretariat to the Board, and keep all records o b ayf the affairs and the meetings of the Board and ek o nmsure the implementation of its decisions and diirs ebc otives; (b) propose crite th orfia for selecting the Trust Agent of the a t Fund in a pccrordance with section 15 and recommend such an. Nd oagent to the Board following a competitive sele e ecrvtion process; and (c) p res espare and submit for Board’s approval the application ht rig procedures, guidelines, selection criteria, standards . A ll and terms and conditions for grants. nia za (2) The Agency shall select projects for evaluation, and Tan contract suitably qualified persons to evaluate the social and f nt o economic impacts of these projects. e rnm (3) The Agency shall recommend to the Board projects for veo approval. 5 G 02 (4) The Agency shall establish an information system to ©2 capture and store information on approved and executed projects, and without prejudice to the foregoing it shall- (a) prepare proposals to the Board for additional means and sources of finance to be used for the benefit of rural energy service provision; 65 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (b) ensure the timely collection and deposit of all the funds to be collected from sources specified under this Act in the account of the Fund; (c) promote the Agency and the Fund to the appropriate . local and national government authorities, and facilitate G OA the co-ordination of the activities of the Agency with n o f other rural development activities; io iss (d) facilitate provision of capacity building activit rm piees as appropriate in the preparation, installation, opoue t ration and management of rural energy systems; ith d w (e) facilitate provision of technical assistancueteb by qualified private entities related to technical desigtrnidis , management, financial analysis, project financed oa rn d sound business practices to qualified developedrus c;e (f) facilitate the preparation eapn rod appraisal by qualified private entities of projec tbse ar pplying for grants; (g) facilitate the preparat mio any of bid documents for projects to be competitively otkbo endered to prospective developers; and is th (h) recommendr t oo f t the Board, award of grants and execution of granto pc aontracts in accordance with established criterida.. N (5) Thee rv e s Agency shall keep accounts and records of its e transahctst irons and affairs and ensure that all monies received are pro ig lpl rerly brought to account and all payments out of its monies aiar. e A correctly made and properly authorised and adequate za n n control is maintained over its property and over the incurring f T a o of liabilities by the Agency. en t (6) The Agency shall, in collaboration with the relevant ern m authority, ensure that the relevant applicable environmental Gov standards, if any, are used in designing, constructing, operating 25 20 and maintaining rural energy systems. © [s. 16] 66 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] PART IV ESTABLISHMENT OF THE RURAL ENERGY FUND2 Establishment of 9. There shall be established a Fund to be known as the Rural . Fund Energy Fund for the purpose of providing grants to qualified OAG developers of projects. of on [s. 17s]is rm i pe Mandate of Fund 10.–(1) The Fund shall represent the funding mechahon uit sm by which the Board shall fulfil its mandate to providd we i tgrants to subsidise the capital cost of projects that areb ud teeveloped by i private and public entities, co-operatives andi sltrd ocal community organisations. r d o (2) The Fund shall provide resourcdeus c efor- (a) grants towards the capital coespt ros of projects implemented r by private and public en bteities, co-operatives and local community organisat mio ayns; (b) the provision of tebc k oho nical assistance, training and other forms of capa s thc iity building to qualified developers by qualifiead f rt o experts related to the planning and preparatio pN n of a project prior to an application for a grante; da . nd (c) theese p rvrovision of financial assistance. r hts [s. 18] l ri g l Funding Sources 1ia1. A.–(1) All contributions and other payments required by this Act No. an 16 of 2007 s. 56nz Part shall be paid into the Fund for the purposes of the Fund f T a and for making other payments required by this Act. t o en (2) The Board shall, in consultation with the Minister, fix the ern m size of the Fund sufficient to achieve the objectives of this Act. ov G (3) The sources of income for the Fund shall consist of 5 20 2 monies as may be provided- © (a) by Government in an annual budgetary allocation, to be deposited in the account of the Board at the 2 This Part was previously Part V 67 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] beginning of every month or as may be determined by the Minister for Finance; (b) as contributions from international financial organisations, multilateral and bilateral agencies and . other development partners; G OA (c) from levies of up to five percent of all the value of n o f electricity generated on the commercial generation osfiois electricity to the national grid, as determined bpye r mthe Minister in consultation with the Minister for F t ouinance, to be deposited in the account of the Fund atw itt h he end of every month; ute d b (d) from levies of up to five percent odfis trai ll the value of electricity generated on the gen r de ora tion of electricity in specified isolated systems,d u ciencluding systems for private consumption as deteepr rmo ined by the Minister in consultation with the Min r ibseter for Finance, to be deposited in the account of the Fmua nyd at the end of every month; (e) as fees in respecotkbo of programmes, publications, seminars, con tshu is ltancy services and other services provided byr t oh f t e Agency. (4) The monie spa constituting the Fund shall be placed in an account with a. bN o ed ank to be invested in such manner as the Board shall deemse ra vppropriate, and any income from the investment e shall bes crt redited to the Fund. (l5 ri h l )g The Minister may, after consultation with the Minister fiao. r A Finance and by Order published in the Gazette, prescribe n nz a a levy of up to five per cent of the value of all electricity a of T generated on the commercial generation to the national grid nt e or on the generation in specified isolated systems or private ern m consumption systems. Gov [s. 19] 02 5 ©2 Special purpose 12.–(1) The Minister may, in consultation with the Minister Fund for Finance, execute agreements with development partners setting up Special Purpose Fund for rural energy detailing separate financing arrangements for the Fund. 68 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (2) The agreements made in subsection (1) shall define the specific modalities for administering the Special Purpose Fund. (3) The modalities set out under the agreements made under . this section shall not be contrary to the general principles OAG established in the First Schedule to this Act for the use of the n o f Fund. io iss [ rm t p se. 20] ou Management of 13.–(1) The Board shall be responsible for policy fwoi trhmulation Fund in connection with the fund and for governanceu toe df the Fund. (2) Funds to be paid out of the Fund shail i slt rb be so paid only with the approval of the Board. or d (3) The Agency shall make availa e ucblde to the Fund such facilities and services of such office rosd as are necessary for the proper and efficient exercise of th ere p be functions of the Fund. (4) Where it considers it mdae y sirable to reduce risk or avert threatened loss to the Funood k , the Board may take any steps it considers necessary on b hi ss uch terms and conditions as it may t prescribe. of art o p [s. 21] N d. Use of Fund 14.–(1) Theer vr eesources of the Fund shall be applied towards- (a) sg r easnts to qualified developers; (b ht ri)g payment or discharge of the expenses or obligations ll . A incurred in connection with the performance of the nia za functions of the Agency and the Board; and n Ta (c) payment of any remuneration or allowances to the of nt members of the Board and employees of the Agency. rnm e (2) Grants made by the Fund to qualified developers may be veo used to co-finance- G 02 5 (a) training and other forms of capacity building of ©2 qualified developers; (b) the provision of technical assistance by suitably qualified experts related to the planning and preparation of a project prior to an application for a grant, including pre-investment studies for projects; 69 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (c) the capital costs of a project implemented by a qualified developer; and (d) investments in innovative pilot and demonstration projects and applications for renewable energy when . development partners make special purpose funds OAG available for that purpose. n o f (3) The Fund may not make grants towards the operating osriois debt service costs of any project or developer. rm t p e ou [s. 22] th w i Trust Agent 15.–(1) The Board shall appoint a Trust Agent d u tewho shall be responsible for disbursement of grant paymtribis ents from the Fund and ensuring that any pre-conditio d onrs set by the Board for making a grant payment are met by tehduc e developer. (2) The Trust Agent shall be contrparoc dted by the Board through public tender for the procuremen tr eof the service where- (a) banks, accounting firms yo be ma r similar institutions acceptable to the Board may poa orkticipate in the tender; and (b) the contract wihtish b the Trust Agent shall not exceed a t period of thrr f t eoe years at a time. (3) The Truo ps at Agent shall be responsible for the administratiodn. N of grant payments, including financial disbursemeernv e s t, verification and monitoring activities. (4) Dre ts etails of activities, manner, terms and conditions of granl rtig p h ayments shall be specified in the directives to be issued l biay. A the Board and contract documents establishing the relation za nof the Board and the Trust Agent. n f T a (5) Selection of the Trust Agent shall ensure that the Trust t o en Agent- ern m (a) is in a position to provide services with a wide v G o geographic coverage across the Mainland Tanzania; 02 5 (b) has good knowledge of project finance, including rural ©2 financing issues, as well as means to deliver, track and monitor finances; (c) is able to make disbursements effectively, while ensuring proper use of funds, with ability to monitor the use of funds in an effective and transparent manner; 70 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (d) is able to work closely with the Agency under the direction of the Agency and its delegated representatives; and (e) is able to set up and operate a management information system that enables key parties to access that . information to track progress on disbursement and G OA utilisation of funds. of n (6) The Trust Agent shall be paid for its services by tihsse io Board. rm pe (7) The Trust Agent shall be independent of the Fuonu t d, and shall prepare periodic financial reports at the req th wuiest of the d Director General. uteib dis tr [s. 23] or Annual Accounts 16.–(1) The annual accounts of the Fundu,c ien dcluding expenditures of the Agency, shall be audited by paro dcompetent and qualified external auditor appointed by bet hree Board after receiving a recommendation from the Conayt m roller and Auditor-General. (2) Donors to the Fund k o mo ay appoint an auditor of their own choice and at their ow b hnis expense to audit the accounts of the t Fund and Agency ifrt toh f ey have a provision of that effect in their agreements to fuon pd a the Fund. (3) The fin N da.n cial year of the Fund shall commence on the 1st day of Julys a e ernvd shall end on the 30th day of June the following year. (4) Thre ts e financial year of the Agency shall be the same as the finaln rigc hial year of the Fund. A l ia. [s. 24] n nz a f T a PART V nt o e ESTABLISHMENT OF THE rnm ve RURAL ENERGY BOARD3 5 G o 2 20 Establishment of 17.–(1) There is hereby established a Board to be known as the © Board Rural Energy Board whose objective shall be to promote rural socio-economic development by facilitating extended access 3 This Part was previously Part III 71 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] to modern energy services for the productive economic uses, health and education, clean water, civil security and domestic applications. (2) The Board shall strive to achieve the objective stipulated . in subsection (1) by- G OA (a) supporting the provision of modern energy services of n through projects that are developed by privaitses i,o public entities, co-operatives and local commpue rnmity organisations; ut o (b) facilitating the provision of technical as swiis thtance to d qualified developers that contributes tobu ttehe provision of modern energy services in rural adries taris; (c) allocating grants in an efficient and r d coompetitive manner, to subsidise the capital costs oucd fe projects, taking into consideration a project’s so ro ecpial and economic benefits, regional equity in the al r lboecation of funding resources, and the project’s sustaiany m ability. oo k b [s. 6] thi s Composition of 18.–(1) The Board sh ofrt a ll consist of the following members: Board (a) a represeo np atative from the Ministry responsible for energy N d;. (b) a sreerp veresentative from the Ministry responsible for e hts fi rnance; (lc ri)g a representative from the Ministry responsible for Al ia. regional administration and local government; n za (d) a representative of the private sector; an f T (e) a representative of the Tanzanian Bankers’ Association; nt o e (f) a representative of a civic society; ern m (g) a representative of the Development Partners; and v G o (h) a representative of consumers. 5 02 (2) There shall be no alternate members. ©2 (3) A member appointed under subsection (1)(g) shall have no voting power. [s. 7] 72 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] Criteria and 19.–(1) Members of the Board shall- appointment procedure (a) have a strong interest in making the activities of the Board successful; (b) be able to mobilise institutional and public support . for the activities of the Board and Fund and have OAG competence in rural development issues; of n (c) have autonomy from institutional or corpora io mistse influence; and erp (d) not have financial interests in any project suppourt o ted by the Board. ith d w (2) The procedure for appointment of m te beumbers of the Board shall be as follows: tri dis (a) the Minister shall invite recognisde odr organisations and participants in the private and dcui cveic sectors to nominate their respective representaetpiv roe and the Minister shall select one of each of the neo r b minees to be the private and respectively civic sect a morys representative; (b) the Developmenbto okPartners representative shall be appointed fromthis amongst the Development Partners active in the f r t eonergy sector in Mainland Tanzania; and (c) the Minios pte ar shall invite recognised organisations in civil s . N eodciety with an interest in consumer protection to no rv sme inate the consumer representative on the Board, re htsand the Minister shall select one of such nominee to be rigll the consumer representative. A ia. (3) The Chairman of the Board shall be appointed by the an nz Minister after receiving recommendations from the Board. Ta of [s. 8] nt e Teenrunrme of office of 20.–(1) A member of the Board shall - oBvoard Members G (a) hold office on such terms and conditions as may be 02 5 specified in the instrument of his appointment and ©2 shall, in the first instance be for a period not exceeding three years; and (b) be eligible for re-appointment only for a subsequent period not exceeding three years. 73 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (2) Notwithstanding the provisions of subsection (1), nothing shall preclude members who hold office in their organisations beyond six years from maintaining membership or being re-appointed to the Board. . (3) The Minister may terminate or suspend the appointment G OA of a member, including the Chairman- n o f (a) for the member’s physical or mental inability to perfor io isms the functions of his office; pe rm (b) for gross misbehaviour or incompetence; ut o (c) if the member is convicted of a criminal offenith w ce; d (d) if the member, in any particular case, bfua tiels to comply with the provisions of the Second Sc tri dhisedule to this Act relating to the disclosure of intereds ot; r or (e) if the member is declared bankurcd uept. proe [s. 9] be r Meetings and 21.–(1) The provisions of the Sey ma cond Schedule to this Act shall procedures of Board apply to the meetings of thooe k Board and other matters provided for in that Schedule. s b thi (2) The Board mrt ao fy co-opt any person to participate in its deliberations, buto a p aperson so co-opted shall have no right to vote. (3) Membed.r Ns of the Board shall be entitled to payment of honoraria earv e s nd sitting and other allowances determined by the Boatsr rd e and approved by the Minister; and which shall be fund reigl dh from the operational budget of the Agency. Al ia. (4) The Board shall appoint the Director General to be n za Secretary to the Board who shall be responsible for arranging n f T a the business proceedings of the Board and such other duties as t o en the Board may direct. m ve rn [s. 10] Go 02 5 Offense for 22. A person who contravenes an order issue of direction or ©2 contravening Authority’s condition given by the Authority in relation to performance of directions its regulatory functions commits an offense and upon conviction Act No. 16 of 2007 s. 52 shall be liable to a fine of not less than three million shillings or to imprisonment for a term not exceeding five years or to both. [s. 10A] 74 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] Powers and 23.–(1) The Board shall- functions of Board (a) direct the Director General to furnish it with any information, reports or other documents which the Board considers necessary for the performance of its . functions; OAG (b) review and approve reports prepared by the Agency, of n including the annual report of the Agency, and tihsse io annual and medium-term work plan and budget poef r mthe Agency, as referred to in section 28; ou t (c) approve criteria for eligibility of a developer i wofth a project d to apply for grants from the Fund; te bu (d) approve guidelines for the Agency tod ciso trintract technical assistance, training and promdo ot ri onal support to qualified developers; and e du c (e) execute grant contracts witphroe qualified developers in accordance with the Firs r bte Schedule to this Act. (2) The Board shall be the a m goyverning body for the Fund and in that respect shall- ok bo (a) appoint a Trusth iAs t gent who shall be responsible for the administratio onfrt of the Fund; (b) approve c prao iteria for the eligibility of developers of project.s Ned to receive grants from the Fund; (c) appserr vove and set terms and conditions for grants from st hr e ht e Fund to developers; (ld rigl ) establish procedures for evaluation of projects eligible A ia. for grants from the Fund; za n n (e) establish model documents for application and of Ta approval of grants from the Fund; en t (f) approve or reject applications from qualified developers m ern seeking grants from the Fund, and determine the level ov 5 G of grants to be granted; 2 20 (g) approve the annual budget of the Fund, including © provisions for the operating expenses of the Agency; and (h) appoint the auditor of the Fund and approve the auditor’s reports. 75 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (3) The Board shall be the governing body for the Agency and in that respect shall- (a) approve the management, performance and operational policies of the Agency; . (b) approve the annual and medium-term work plan and OAG budget of the Agency; n o f (c) approve general terms and conditions of employmeisnst io for employees of the Agency; pe rm (d) direct the Director General to submit reporutt o s and accounts as may be reasonably required by thi t w eh Board; d (e) monitor the management and perforbmu teance of the Agency and its staff; and tri dis (f) appoint the auditor of the Agen r d coy and approve the auditor’s reports. ce du (4) The Board may delegate to a ro enpy of its members its power and authority to carry out on itse br b ehalf such functions as the Board may determine provideady m that grant allocation shall not be subject of such delegabtoi ookn with the exception provided for in paragraph 7 of the Fiirs th st Schedule to this Act. (5) The Board mrat oy f establish such number of committees to assist it to carry oo pu at its functions. . Nd [s. 11] erv e s Board’s autonomy 24.–(1) Threts e Minister may, after consultation with the Board, givel rigg huidance of a policy nature to the Board regarding the Al eiax. ecution of its functions, and it shall be the duty of the Board n za to give due consideration to such guidance. an f T (2) The Board shall be independent in the performance of t o en its duties and functions within the mandate provided for by rnme this Act. ov G [s. 12] 5 20 2 © Accountability of 25.–(1) The Board shall, within three months after the close of Board each financial year, submit an annual report to the Minister, including an audited report on the operating expenditure incurred by the Board and Agency, revenues collected, grants approved and grant payments disbursed by the Fund. 76 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (2) The Minister shall cause copies of each annual report to be laid before the National Assembly within two months after he has received them or at the next meeting of the National Assembly. . (3) The Board shall cause to be kept and maintained a full OAG record indicating- n o f (a) the names and number of persons in respect of granistss io awarded; ermp (b) the number, size and purpose of grants awardeodu t; and (c) where relevant, the period for which thweit hgrant is d awarded. ute rib dis t [s. 13] or PART VI ce d u od APPOINTMENT O rFep rDIRECTOR GENERAL, OFFICy bE eRS AND STAFF a k m Appointment of 26.–(1) The Director Gen o beoral of the Agency shall be appointed Director General, officers and staff by the Board. s f th i (2) The recruitmrt eoa nt of the Director General by the Board shall be on the p Nboasis of competitive selection. (3) The Dd.rve irector General shall, subject to the overall directionre so ef the Board, be the Chief Executive Officer of the Agengc hyts and of the Fund. A( i ll 4 r) The Board shall appoint other officers and staff as may nbiae . required for the performance of the functions of the Agency a an z and on such terms and conditions as it may determine: of T t Provided that, the Director General shall, subject to terms men and conditions set by the Board, have powers to appoint staff ve rn of the Agency identified under such regulations. o 5 G (5) The Board shall ensure that the remuneration of the 02 ©2 Agency personnel is competitive with that offered by the private sector for comparable responsibilities and shall not be bound by the terms established under the public service structure. [s. 25] 77 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] Functions of 27.–(1) Without prejudice to the generality of the foregoing, Director General the Director General shall- (a) exercise the functions of the Agency provided for under section 8 of this Act; . (b) manage the budget, personnel and property of the OAG Agency; and f n o (c) represent the Fund in its dealings with third parties. siois (2) The Director General may delegate his authorpitey rm to employees of the Agency wherever he deems necessaroyu tf or the efficient performance of the Agency’s activities. th d w i te bu [s. 26] ist ri Reports 28.–(1) The Director General shall keep o r dall records of the affairs and the meetings of the Board educ and shall ensure the implementation of its decisions andp rdo directives. (2) The Director General shall s urebe bmit to the Board quarterly reports in respect of the remvaeyn ue received and expenditure incurred by the Fund, incooor kp orating expenditures incurred by the Agency. his b t (3) The Director oGf rt eneral shall, within three months after the end of each a ofi pnancial year, submit to the Board an annual report in respde. c Nt of that year, containing- (a) au rve sdeited financial statements of the Fund, incorporating tst hr ee expenditures of the Agency; (lb ri)g h performance indicators and any other related l A ia. information; n za (c) a report on the activities and operations of the Agency; an f T and t o en (d) such other information as the Board may, before or rnme after the completion of the annual report, direct. ov G (4) The Director General shall, not later than three 250 months before the end of each financial year, prepare and ©2 submit to the Board for its approval, a work plan and budget containing- (a) identification of priority projects that the Agency should include in its work plans; 78 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (b) a short-term work plan setting out the principal activities of the Agency planned for the coming year; (c) a medium-term work plan setting out the expected activities of the Agency for the coming three years; . (d) estimates of the expenditures of the Agency for the G OA coming year; n o f (e) estimates of the grant allocations to be made from thseiois Fund, including all known commitments, anticippe ramted commitments for the coming year, and estimuat o tes of longer term commitments; and ith w (f) estimates of the income of the Fund fourte d the coming three years. trib dis (5) The Director General shall, at any tdi mo r e before the end of a financial year, prepare and submit todu ctehe Board for approval any estimates supplementary to theep b roudget. (6) The Director General sh a bell r prepare such financial and technical reports as requesteda by m y the Board. k bo o [s. 27] his t Immunity 29. An employee o rt of f the Agency shall not, in his personal capacity, be liabloe pi an civil or criminal proceedings in respect of any act or omdi. s Nsion done in good faith in the performance of his functioenrv e s s under this Act. s r e t [s. 28] rig h ll a. A an i FIRST SCHEDULE nza f T (Made under section 12(3)) t o en GUIDELINES FOR MANAGEMENT OF THE FUND ern m Gov Procedures and principles for fund allocation 02 5 2 1. Authorisation of the use of the Fund by the Board shall be as follows: © (a) financial commitments from the Fund shall be made by signature of the Chairman of the Board, co-signed by one other member of the Board and the Director General; 79 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] (b) financial commitments of the Agency within the annual budget shall be made by signature of the Director General co-signed by the officer of the Agency in charge of the accounting function. 2. The selection of projects for funding and the calculation of the level . of grant to a project shall be done on the basis of published criteria at AG the beginning of each financial year, indicating- O of (a) schedules of grants for different categories of investments; n io (b) project and developer eligibility criteria; and iss (c) the procedures for the submission and processipnegrm of applications to the Fund. ut o 3. For purposes of regional equity, the Board may differentiaittehw grants by region and location. ted u Processing of Fund applications from locally initisita ritbed projects d 4. At the beginning of each financial year, the Ag eonr cy shall issue a notice by way of advertisement inviting developersu d cteo submit applications for grant support for projects. rod 5. The applications shall be assessed by trhep e Agency against the published eligibility criteria and recommend e grant funding and the level of granaty abtions prepared on eligibility for m that may be awarded. 6. The results of the assessmenotko m ade under paragraph 5 together with the Agency’s recommendast ibi ons shall be submitted to the Board for approval. f th 7. The Board may delergt a aote its authority with respect to grant allocations to the Director Genoe pral for award of grants below a level that is specified by the Board andd. Nrevised on an annual basis. 8. Within fiv e erev days of the Board entering into a grant contract with a developer r,e t she Director General shall send a copy thereof to the Trust Agent ihntsstructing the Trust Agent to make grant payments to the project deve g ll lro i per in accordance with conditions set out in the grant contract. . A nia Tenders for National Priority Rural Energy Projects a an z 9. The Agency shall prepare pre-feasibility studies for priority projects of T identified by the Board. t en 10. The anticipated grant for a priority project shall be estimated by the rnm Agency on the basis of the investment programme defined in the pre- veo feasibility study and the adopted schedule of grants for the particular G 25 year. 20 11. Priority projects shall be tendered to potential developers through © an open and competitive tender process in which the evaluation criteria are specified in the tender documents. 12. The required investment program shall be included in the bidding documents for the tender. 13. The Agency shall review all proposals received from potential developers, and shall evaluate these proposals against the evaluation 80 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] criteria published in the tender documents; and shall submit a recommendation on the selected developer to the Board. 14. Subject to the Board’s approval, the Agency shall negotiate a grant contract with the preferred developer. The Grant Contract AG. 15. The content of a grant contract shall be in accordance with any f Oo conditions established by the Board. ion 16. The information to be included in a grant contract shall include bisust not be limited to- rm pe (a) a description of the project; ut o (b) the place of execution of the project; ith (c) a report on the financial status of the develope w edr; (d) anticipated financing arrangements for the purtib oject including the developer’s own equity contributi tr r d oins and sources and conditions of loan finance; o (e) the disbursement schedule for grcaen d t payments set against project development milestonerso;d u (f) mechanisms for project suprerp vision and control, including regular reporting require mbeents during the implementation of the investment progmraa ymme; (g) specification of any ogku arantees as required by the Board; (h) a mechanism ains d bo process to transfer the grant contract to another enf thity where the ownership of the project is transferred rt oo another entity during the period in which the grant co a on ptract is valid; and (i) descr N di.p tion of consequence’s and procedures in case of non- fulrfivellment of the investment programme. 17. Wher ere t shee developer is required to obtain a licence or authorisation from EhWts URA, the grant contract shall have the award of such a licenll cr ige or authorisation as a condition precedent and the Board shall bae. Aabsolved from making any grant payments should the developer’s nlia icence be withdrawn or suspended. nz f T a Procedures for the Trust Agent t o en 18. The Trust Agent shall disburse payments according to the schedules rnm established in the grant contracts. e ov 19. The Trust Agent shall employ its own staff or consultants to verify G 25 the progress of the project against the milestones established in the 20 grant contract for disbursement of funds to the developer. © 20. The Trust Agent shall ensure that the equipment, materials, installations and other activities set out in the grant contract have been installed and are in accordance with any terms, conditions and standards as set out in the grant contract. 81 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] Verification by the Agency 21. Where directed by the Board, the Trust Agent shall undertake an independent verification of project completion at the time of commissioning and shall verify that the project is in compliance with any terms, conditions and standards set out in the grant contract. G. A O n o f SECOND SCHEDULE iss io rm (Made under section 21(1)) t p e ou PROCEEDINGS OF MEETINGS OF THE BOARith w D ted Meetings trib u s 1. The Board shall meet at least four times a year a i rn dd at such other times as may be necessary or expedient for the transeadc otion of its business. 2. All meetings of the Board shall be conduv cened by the Secretary to the Board or where the Secretary is incapproacitated, the Chairman shall appoint a suitable time, place and datee rf eor the holding of each meeting. 3. The Secretary shall convene a sy a pbecial meeting of the Board on a request in writing signed by no ok tm less than five members of the Board for such a meeting and shall cboause the meeting to be held within twenty one days of the receipt byt hhi si m of such request. 4. Except in the case rto of f a special meeting, a Board meeting shall be convened with at lea psat five days notice in writing, specifying the business to be transacted .a o Nt the meeting, and written notice of the convening of the meeting shvea dll be given to every member of the Board. 5. Any mem r seber of the Board with a Commercial interest in any business to be tratns s reacted at the meeting shall notify the Chairman and Secretary to theri gB hoard and shall excuse himself from that portion of the meeting wh Ael lre that business is discussed. n6ia. . The Chairman shall preside at the meeting of the Board and, in the zan absence of the Chairman, the members present at the meeting shall f T a elect one of their number to be an interim Chairman. nt o 7. Minutes of each meeting of the Board shall be kept in proper form nm e and shall be confirmed by the Board at its next meeting and signed by erv the Chairman of the meeting. o 25 G Quorum and decision making 0 ©2 8. Five members of the Board shall constitute a quorum at any meeting. 9. All acts, matters and items authorised by the Board shall be decided by resolution at a meeting of the Board at which there is a quorum. 82 THE RURAL ENERGY ACT [CAP. 321 R.E. 2023] 10. A decision approved by voting by the majority of members present at a meeting of the Board shall be deemed to be a decision of the Board. 11. Every member of the Board, excluding ex-official members, shall have one vote and in the event of an equality of votes, the Chairman of the meeting shall have a second or casting vote in addition to his . deliberative vote. AG 12. Notwithstanding the provisions of this Schedule, where the of O Chairman so directs a decision may be made by the Board without a io n meeting by circulation for the relevant papers among all the membeisrss and the expression in writing of their views, but any member s hpea rlml be entitled to require that any such decision be referred until theu to subject matter be considered at a meeting of the Board. ith 13. Subject to the provisions of this Schedule relating t eod q wuorum, the Board may act notwithstanding any vacancy in the mreibm utbership thereof and an act or proceeding of the Board shall not dbise t invalid by reason only of some defect in the appointment of a meomr d ber or a person who purports to be a member. e du c Power to Regulate ePpr roocedure r 14. The Board shall have power to b eregulate its own procedure and may from time to time make sta mn adying orders providing for all matters relating to the meetings of thoeko Board and the proper conduct of its business. his b f t t o Agency Seal r 15. All deeds, insotr pu aments, contracts and other documents shall be deemed to be d N du. ly executed by or on behalf of the Board where sealed with the seael rov ef the Board and signed by- (a) ret she Chairman and the Secretary of the Board; ( igh bts) the Director General and two members of the Board; or ll r (c) one member of the Board and the Secretary, both of whom . Aa have been authorised by the Board for that purpose. an i an z T t o f men ern Gov 5 20 2 © 83 G. A of O sio n is rm t p e ou ith ted w u str ib i or d ce d u rod re p e ay b k m oo his b f t art o No p ed . rv se ts re igh All r nia . nz a a f T nt o me ve rn 5 G o 2 ©20