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WASHINGTON.- 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.
However, Mariel Fiat, World Bank country officer in Dominican Republic, Wednesday said disbursement could take as long as one year because Congress must approve the loan contract.
“It will first have to be signed by the Hacienda (Finance) Ministry, but we expect it will be signed and we’ll kill two birds with one stone,” she said in reference to another World Bank loan, of US$80 million, fast-tracked to help rebuild after last year’s devastating storms.
According to the Web site of the group of Dominican Republic’s State-owned companies that distribute electricity, bill collection improved by more than 97 percent in March, or 8.26 percentage points higher than he same year ago period, of around 89 percent.
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However at 132 and rising for a barrel of oil every leader in the free world better light some candles because it will be to expensive to turn on the lights..
As of April 2008, the total U.S. federal debt was approximately $9.5 trillion.
The DR has external debt of 8.4 billion.
If so shouldnt they be repnsible, for the loan of US$42M loan.
http://findarticles.com/p/articles/mi_m0BEK/is_7_7/ai_55012941
UNION FENOSA, a Spanish power company, and U.S.-based AES outbid several other companies to buy 50% shares of three Dominican distribution companies. The companies were spun off from the Dominican Republic's struggling state-owned power company, Corporacion Dominicana de Electricidad (CDE). The government accepted Union Fenosa's bid of US$212 million-33% above the $159 million asking price--for the Distribuidora Norte and Distribucion Electrica Sur.
... 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. ”
Not to sound negative but isnt that always the excuse for a loan.. "to help the proverty-stricken". It's be safe to surmise that a large chuck of the millions mentioned will never be seen by the most affected. If history has taught us anything, it is exactly that.
its such a simple concept -- improving standard of living of the poor will lead to a sense of affluence. Combine that with jobs and the possibilities for economic growth are endless.
We are getting all dressed up, but may have no party to go to ... only time will tell..