ENERGY SECTOR LOAN

closed

The Energy Sector Project consists of the first phase of a least-cost development program aimed at reorienting the country's approach to energy sector development in order to minimize the total cost of power generation. It will support a government strategy and institutional action plan aimed at: (a) enhancement of the sector's capability to plan for energy growth and to coordinate policy implementation; (b) adoption of least-cost strategies for energy development; (c) strengthening of regulatory activities for rational energy pricing and control of quality of service; (d) encouragement of private sector participation through joint-venture and other schemes; (e) improvement of environmental standards and other monitoring; and (f) enhancement of the technical capabilites of the sector institutions. The project will finance selected components comprising, inter alia, support to import equipment and materials required in geothermal fields development, power plant construction, power transmission and distribution, rural electrification, modernization of office and laboratory equipment of the sector institutions, training, technical assistance, and the undertaking of a number of studies.