Contacts: In Santo Domingo: Alejandra De La Paz (809) 566-6815 adelapaz@worldbank.org In Washington: Patricia da Camara (202) 473-4019 pdacamara@worldbank.org WASHINGTON, May 20, 2008— The World Bank Board of Directors today approved a loan of US$42 million for the Electricity Distribution Rehabilitation Project to improve service for customers of the energy distribution companies EdeNorte, EdeSur, and EdeEste in the Dominican Republic. “This project will help reduce both technical losses and energy theft on the EDEs’ rehabilitated power circuits, as well as improve the quality of electricity service for regular customers,” said Yvonne Tsikata, World Bank Director for the Caribbean. Tsikata added that “the project will also help improve the quality of life for poverty-stricken households, which are always the most affected by the lack of electricity.” The Electricity Distribution Rehabilitation Project is part of the 2005-2009 Country Assistance Strategy between the World Bank and the Dominican Republic, which aims to achieve sustained economic growth to help in poverty reduction. Project goals include: - Increase the Cash Recovery Index (CRI) of the three EDEs by reducing technical losses and energy theft, as well as improving the companies’ coverage.
- Increase the hours of electricity provided on rehabilitated circuits.
The initiative supports the design and implementation of the 24 Hours of Light Program based on the social agreements between the distribution companies and community organizations in several regions in the Dominican Republic. The initiative seeks to increase the electricity service to 24 hours in exchange for a substantial increase in the CRI. The rehabilitation of the power circuits will ensure improved quality of life and greater confidence in customer service as well as stabilize the precarious situation stemming from illegal connections. In addition to the new loan, the World Bank’s energy sector projects in the Dominican Republic include a budget support loan for US$150 million (US$100 million of which was disbursed in 2006 and 2007) linked to the distribution companies’ increased CRI; and a technical assistance loan to the energy sector for improving its institutional performance. The new World Bank fixed-margin loan for US$42 million based on a LIBOR rate has a payment period of 30 years and a five-year grace period. ### For more information about this project, visit this website For more information about the World Bank in the Dominican Republic, visit: http://www.worldbank.org/do |
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