The Dominican government submitted via the Senate a bill for a US$75 million loan with the OPEC Fund for International Development (OFID). The funds are allocated to the Public Electricity Corporation (CDEEE) to finance the Program for Loss Reduction and Rehabilitation of Electrical Distribution. As reported, another US$75 million loan for the same project is under negotiation.
OFID is the intergovernmental development finance institution established in 1976 by the member states of the Organization of the Petroleum Exporting Countries (OPEC).
According to the documentation accompanying Loan 13274P, submitted on 31 October 2019, the overall objective of the project is to strengthen the infrastructure of the distribution system and improve the quality and continuity of electricity supply to end customers in the program’s area of influence.
The program is to be executed by CDEEE and is divided into four components: rehabilitation of distribution networks, strengthening of commercial management, social management, and administration, monitoring and control.
In the network rehabilitation component, it is estimated that US$69.2 million will be spent on the installation of 1,048.9 kilometers of medium- and low-voltage power lines for 114,500 households in 21 distribution networks.
Funds are also allocated for the acquisition and installation of remote measurement systems for industrial, residential and commercial users, remote macro-measurement systems, micro-measurement systems in transformers, and works for environmental management activities.
The second part would involve an outlay of US$2 million to acquire mobile offices, remodeling and construction of commercial offices and acquisition of materials for commercial management. In addition, US$1.5 million is earmarked for the design, evaluation and implementation of social management plans. The fourth component includes US$2.2 million for consultancies, civil works, preparation of financial audit reports and monitoring of the results of the program.
In its coverage on the loan, Diario Libre reported that already in October 2019, the Executive Branch had submitted a loan contract with the Inter-American Development Bank (IDB) for US$400 million “to promote financial sustainability and operational efficiency in the electricity sector.” Other media have focused on widespread wasteful spending at the CDEEE and the government-owned power distribution companies.
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Diario Libre
Diario Libre
5 November 2019