The government and the power companies reached an agreement yesterday aimed at ending the prolonged power cuts that have besieged the country for the last few weeks. The power companies agreed to gradually increase the electric supply, providing the government makes payments to clear the debts they have accumulated. The government has allocated US$32.5 million to pay electricity generating companies, including EGE-Haina, EGE-ITABO and AES, according to Finance Minister Rafael Calderon. It does not look as if the situation would improve immediately, however, because the generating companies say they are waiting for fuel shipments due later this month and during the month of March. Calderon said the debts would be paid in a matter of 10 days.
The Central Bank today says in a paid advertisement that the Board of Directors of the World Bank has approved a US$100 million loan for the electric sector. The Central Bank says this is a rapid disbursement loan.