Santo Domingo.- The World Bank has approved a new initiative in the Dominican Republic, investing $225 million to upgrade the country’s electricity sector. The project aims to reduce electricity distribution losses by rehabilitating networks, improving technology, and reducing power outages. Approximately 813,000 consumers in urban and rural areas are expected to benefit from these improvements.
The Dominican Republic’s electricity sector has been dealing with substantial losses due to outdated and overloaded distribution lines, illegal connections, metering problems, and inaccurate billing and consumption estimates. These losses have averaged $1.2 billion annually between 2017 and 2021, equivalent to 1.4 percent of the country’s GDP. Reducing these subsidies will free up more resources for social programs and human development initiatives.
The Distribution Efficiency Improvement and Service Strengthening Project will reinforce the government’s efforts to address these issues. The project will collaborate with state-owned companies to renew electrical infrastructure and modernize business processes, improving the financial sustainability of the companies.
World Bank representative Alexandria Valerio praised the government’s approach to addressing the electricity sector’s challenges and promised continued support for a more reliable electricity supply, crucial for the country’s overall well-being.
Key outcomes of the project include rehabilitation of 1,342 kilometers of lines, regularization of 225,826 delinquent electricity consumers, replacement and installation of meters, improvements in metering and commercial data management systems for state-owned companies. Additionally, the project will relieve overloaded transformers and renew aging infrastructure, thereby reducing dependence on fossil fuels and contributing to reducing greenhouse gas emissions.
This initiative is the first of three investments planned by the World Bank, supporting the Dominican Government’s vision for the sustainable development of the electricity sector. The multi-phase program, planned to last ten years, proposes an estimated total funding of $505 million, with the general objective of improving access to a more reliable, efficient, and environmentally sustainable electricity supply for the entire Dominican population.