Public Utilities Sustainable Development Support Program

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The program's overall objective is to contribute to the sustainability of the energy sector and toincreased coverage and improved management of water supply and sanitation (W&S) services, through a series of policy reformsaimed at strengthening and complementing the regulatory and institutional framework of the energy and W&S sectors. The specificobjectives are to: (i) improve energy security through energy matrix diversification, energy efficiency, and regional integration;(ii) improve the financial and social sustainability of the energy sector and ease the fiscal burden, by reducing the cost of subsidies inthe sector and targeting them more effectively; (iii) strengthen institutions in the areas of energy planning and purchasing; and(iv) improve interagency coordination in the W&S sector, with defined strategic planning and clear assignment of roles in all sectoragencies.This loan operation is the first of two operations that are technically linked to each other and financed independently under theprogrammatic policy-based loan modality.