Dominican Republic steps up power financing search

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Friday, November 7, 2014

Multilateral lenders have received financing requests from Dominican Republic energy authorities wanting to improve sector operational and commercial performance.

World Bank information reveals state power holding company CDEEE asked for a US$120mn loan for a US$232mn distribution network rehabilitation project.

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CDEEE also seeks to secure 75mn euros (US$93mn) from the European Investment Bank for the revamp program.

The project is part of continuing efforts to reduce losses, normalize non-authorized users, deploy remote metering and improve billing and cash collection.

The problem of commercial losses stems from deteriorated networks, a culture of non-payment, energy theft and sophistication of non-authorized connections, technical abnormalities and lack of sufficient commercial data, among other factors, the World Bank said.

The financing updates coincide with an IMF visit to review the state of the country's power sector.

Although IMF has welcomed government fiscal belt tightening efforts, directors of the multilateral have called on authorities to further reduce transfers and allow rates to adjust in line with energy costs.

Last month, President Danilo Medina called on stakeholders to make a national power sector reform pact.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.