Friday, December 8, 2023

World Bank authorizes US$400 million to the DR for the electricity sector

In the same week the World Bank (BM) has authorized two loans. The first, of US$100 million, could be used for social protection services, while the second would be invested in the energy sector.

Were $400 million that institution multilateral made available to Dominican Republic for the reform of the electricity sector in the country, he said in a statement.

It’s about a development policy loan (PPD), which, according to the organization, seeks to increase access to reliable and affordable energy, as well as support the transition to less polluting energy sources and with low carbon.

He also pointed out that since 2014 the deficit ‘generated’ by the electricity sector represents between 1% and 2.3% of the gross domestic product (GDP) of the nation, which represents a fiscal burden for the State and an obstacle to green, resilient and inclusive development, he said.

He also expressed that the Dominican Republic depends on fossil fuels imported for electric power generation, which contributes to higher greenhouse gas (GHG) emissions.

The loan is the second of its kind, specified the World Bank. The first was approved on March 31, 2022.

These are the reforms supported by the second PPD, according to the World Bank:

  • Creation of effective mechanisms to increase the efficiency of distribution companies
  • Implementation of strong incentives to expand the integration of renewable energy into the electricity grid
  • Decarbonization of the transport sector
  • Promotion of the application of energy efficiency measures to reduce GHG emissions

World Bank authorizes a US$100 million loan to the DR


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