Dominican Republic: IDB Approves $78M Loan For Electricity Grid
Above: the Dominican Republic (CJ Photo)
By the Caribbean Journal staff
The Inter-American Development Bank has approved a $78 million loan to the Dominican Republic to improve the country’s electrical distribution grid and reduce electricity waste.
The project, which is part of the country’s Integrated Electricity Sector Plan for 2013-2016, seeks “ensure the proper functioning of the entire commercial circuit, including not only the overhaul of grids but also the measurement, billing and payment collection for electricity that is delivered, with special emphasis on the institutional strengthening of the companies that provide this service to the country, by improving the technical and commercial management that they conduct,” according to a statement from the IDB.
Despite progress made in the Dominican Republic, the IDB said the country continues to “perform poorly in its operations,” with electricity waste at around 33 percent last year.
“The overall goal of the program is to boost the electricity sector’s financial sustainability by cutting total electricity waste in the distribution system and to improve the operation and marketing of services provided by Electricity Distribution Companies,” the IDB said.
The goal is to reduce waste by at least 10 percentage points, bringing it to 23.1 percent by 2017.
To do so, the project aims to overhaul priority electrical circuits, improve measuring systems, strengthen commercial management and achieve continuity in institution-building.
The $78 million loan is for a period of 25 years, with a grace period of 4.5 years.
