ELEC PWR SCTR I

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The Electric Power Sector Project is designed to help achieve the following sector objectives: (i) ensuring optimum resource allocation by requiring adherence of the expansion program to least cost principles; (ii) implementing a Financial Rehabilitation Plan (FRP) of the national power utilities; (iii) promoting rational use of electricity through a tariff system; (iv) improving the efficiency of the power utilities; (v) strengthening the structure of the sector to bring about better coordination, planning and regulation; and (vi) establishing policies and procedures for environmental protection and social aspects of power projects. Specifically the loan will help finance the 1988-1989 "time slice" of the sector investment program. Loan proceeds will fund civil works and engineering of the Yacyreta hydroelectric plant construction and technical assistance to strengthen the Secretariat of Energy.