Distribution Grid Modernization and Loss Reduction Project

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The objective of the Distribution Grid Modernization and Loss Reduction Project for Dominican Republic is to improve the financial viability of the electricity distribution companies (EDEs) by reducing energy losses and increasing revenue collections in the circuits rehabilitated under the Project and consequently increase the supply of electricity. There are four components to the project, the first component being rehabilitation of selected distribution circuits and upgrading of metering systems and implementation of environmental management system for the EDEs. This component will support investments to rehabilitate circuits selected by each EDE. The second component is the Citizen Engagement and community participation. This component will implement a Social Management Strategy (SMS) aiming at restoring the confidence between users and EDEs, increase cash collection levels, and use electricity efficiently and safely. Through the implementation of the SMS, leaders and communities will be informed about the modernization of the networks, and will be invited to actively participate. The third component is the commercial management and project management, monitoring and evaluation of the distribution grid modernization and electrical losses reduction program. This component will finance: commercial management. Small works to refurbish and upgrade existing offices and provision of technical assistance to monitor the business cycle (meter reading, billing, collection and claims follow-up) in the intervened circuits. Finally, the fourth component is the complementary tariff study. The Electricity Market Regulator (SIE) is currently undertaking a Tariff Study (funded under a grant from IDB) to assess and update the levels of the current electricity tariffs in terms of cost-recovery. This component will finance a complementary study (to be completed by 2017) to weigh the social implications of the changes in the tariff rates and recommend mitigation measures and glide-path implementation of the tariff levels proposed in the ongoing Tariff Study supported by the IDB.