Inter-American Development Bank Approves 200 Million Dollars Loan

To boost Dominican Republic’s energy sectorEnergy Dominican Republic V006

The Inter-American Development Bank (IDB) approved a loan of $200 million to support the Dominican Republic’s efforts to improve the efficiency, financial management, supply and service quality of the electricity sector.

The program approved by the IDB Board of Governors on 2 November, seeks to reduce generation costs and extend the coverage of targeted electricity subsidies for poor families.

It also seeks to improve the managerial, operational and financial sustainability of the power distribution companies as well as increase the reliability of services and make them more affordable for the country’s low-income population.

This information is contained on the bank’s webpage and indicated that the three regional distribution companies (EdeNorte, EdeSur and EdeEste) have made progress over the last two years. The number of invoiced clients rose 53% from last year and the number of circuits without blackouts increased by 42% over 2010.

Client billing by the three regional distribution companies has risen by 53%, says the IDB. The number of circuits without blackouts n a measure of service quality n rose by 42%. The new program will help cement this improvement progress, increasing registered customers and those with 24-hour service, and setting specific targets to reduce electricity losses.

The loan is for 20 years, with a five-year grace period and a LIBOR-based interest rate.The implementing agency is the Ministry of Hacienda.

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Dominican Republic Live, from DT, 04.11.11, 4.15 p.m.


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