training report _introduction of usoa_final - Hydropower Investment ...

1.0 EXECUTIVE SUMMARYIntroductionThis report summarizes the training on Uniform System of Accounts provided byHIPP to the Georgian National Energy and Water Supply Regulatory Commission.The seminar was conducted by Neka Danelia, HIPP Power Market Advisor, on November1, 2012.GoalsThe primary goal of the seminar was capacity building of the Georgian Energy andWater Supply Regulatory Commission as well as HIPP staff in Uniform System accountsissues as a necessary tool for cost reduction in the development of HPP infrastructureprojects in Georgia.Training ContentThe focus of the presentation was on the critical task that lies before them: i.e. howeach party/counterparty to a project must be identified and their roles/obligations definedand due diligence undertaken to ascertain whether they can effectively assumethose obligated tasks for the duration of the project, and what standard recoursemechanisms are available to the counterparties if a party fails to perform. Thepresentation was also focused on the question as to whether these recourse mechanismsare available / enforceable in Georgia.ResultsThe participants were very interested in the topic and actively participated in discussionsabout implementation of USOA in other countries mainly in South Eastern Europeand USA. GNERC representatives noted that it was the first time they looked atthe USOA process critically that would help them to perform their regulatory tasks ofthe measures for eliminating existing discrepancies in the tariff making process inGeorgia.The participants obtained a basic knowledge of the concepts of Uniform System ofAccounts, the need for implementation it in Georgia and It was agreed that licensees3