SPC Utility

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Why SPC Utility?

WEMAF drivers define material extent and outline the range and content of services of SPC Utility (starting with strategy and tactics, all the way to applications of demand-representing technologies). Simply said, the results (water in a bathroom, light in a room, local use of biomass and seeking of the ways how to get access to money necessary for one’s life) are integrated and projected into MSMEs and AIZs networks within the province’s territory. SPC Utility proposes, prepares, develops and takes care of sustainability of such network. In other words, SPC Utility for itself creates project portfolio at strategic and tactical levels as well as the rules how to implement these tasks and how to commercially use their outputs. First on a domestic market and markets in other provinces, countries, and continents.


Project portfolio

SPC Utility will have to present these tasks in individual packages (in project portfolio) in a way that there is a demand for them (so that they reflect results of marketing and work with the public from the time when the SPC Utility was funded). Packages represent values of various phases of projects’ life cycle, based on project portfolio. They are designed (equipped) for sale via standard public contracts within a framework which must be based on other documents (for example, zoning plan of a province, Citizen’s Charter). In other words: SPC Utility has to be designed well, tested and their operability certified. This can be done by results obtained from pilot projects. For example, to test and troubleshoot operability of financial service of the “Revolving Loan Fund” – RLF and quality of legal services using a separate department (Special-Purpose Vehicle –SPV).


Pilot projects

Preparation and implementation of pilot projects must support entry of artificial intelligence into province (step-by-step) and attract experts on international market of consulting services, as well as support local universities so that they focus on raising local experts, assure their stabilization and growth of influence of local intelligentsia.


New technologies

Development of utilities in developed countries is now dramatic. In comparison with developing world, they work for different objectives, solve transformation problems caused by influences of new technologies (applications of DER-Distributed Energy Resources, Smart Contracts etc.) while utilities in developing countries are solving the need to acquire the necessary skills including some new (mostly verified) technologies. These are logical and good commercial predispositions for mutual cooperation among provinces throughout the world. SPC Utility thus has a great opportunity to build on good practices. For its own success, consider differences in assumptions and focus its advisory role and financial support of commercial operations (for example, of BOT, Build, Operate, Transfer type) using acquisitions of newly built or restructured activities in the environment of current applications of FinTech and LegTech (for more, see the e-Book).


SED&DRR

SPC Utility represents an innovation to the regions interested in growth of their competitiveness. That will resonate with provinces which have political leaders and entrepreneurs who understand SPC Concept’s principles, opportunity represented by WEMAF drivers and who would want to support founding and development of SPC Utility. That will generate the need for creation of an appropriate legal framework and revival of SED (Social and Economy Development) mostly on programs on a local level and along with provinces’ participation in DRR (Disasters Risks Reduction) projects on a global level (climate change).


Joint-stock company

SPC Utility is designed as organizational unit (share company) that seeks, stimulates, controls and manages synergetic processes in preparation and implementation of project portfolio. The founders of the SPC Utility must be – at least in a majority – local representatives of public and private sector. Reinvestment of profit and the type of control of administrative and managerial procedures should have a separate legal form approved by a parliament. Lenders of financing should control all that, including proper management within in-advance set forth phases of controls and audits. If a SPC Utility is born and starts functioning then problems with financing of developing countries is resolved and they will enter new quality of financing their SED programs and international assistance using DRR projects.


Communication

The ambition of SPC Utility in a province is to be part of network of SPC Utilities in other provinces, other countries and different regions in the world. This is the fundamental precondition for the proper operation and feedback concerning results the SPC Utilities achieve, using benchmarking. Communication technologies are now able to connect all participants within SPC Utility network, SED programs and DRR projects, as they would participate in technological and trade cooperation in developed countries. The technical assumption (projections) of a well-built and managed hierarchy of such big information flows already exists today.


Centers of Excellence

What is for sure going to happen that importance of division of the world into developed and developing countries by itself will lose its meaning, nonetheless, differentiation between rich and poor provinces will remain. The progress will be based on the fact that such differentiation will be more dependent on competitiveness of individual provinces and their ability to do something about it. In place of politically motivated financial transfers it will be a regular function of the banking sector and knowledge support from “Centers of Excellence” – the SPC Utility network, which not only dispense advice but also act.


Commentary

In general, SPC Utility has an opportunity to become the "flagship" of improvement of public budgets In public sectors in developing countries, enhancing participation of the public. An example is entry of innovation in extending loans into timing for one generation (up to 30 years), rising capital and development supporting MSMEs and AIZs in a province (including in-state and international cooperation). In this context, the "flagship" will support capital formation in the target group - households and entrepreneurs in a province.

Model of the SPC Utility is built on a principle of matrix of organizational structure. The purpose is to capture the flexibility in creation of organizational teams, where teams will be exposed to pressure of uncertainty created by external cooperation in an environment of ad hoc offers extended by internet, through information centers via IoT (Internet of Things). An example of such service is IMCI Community.

SPC Utility is a candidate for a tool that will test applications of artificial intelligence in financial management, internal financial controls and in applications of fast and purposeful audits of any focus. These, currently "terribly hard to perform" looking applications will find their solutions via ICT technologies. It will not take long time - while we can't say "now" (not even in developed countries). That "intermittent" period of time is a great opportunity for developing countries and their provinces to get ready.