Dominican Republic and Haiti: Country Studies

Dominican Republic and Haiti: Country Studies
lem was attributed to the frequent withdrawal from service for
repair of antiquated generating units. Low hydroelectric production
was also caused by an inefficient distribution system
that resulted in one-half of the electricity produced being lost
in transmission or through illegal connections. The CDE's
losses were running at RD$200 million (some US$25.4 million)
a month in 1996, and total debt had risen to RD$1,800 million
(some US$138.5 million) by the end of the year.
Although power cuts and shortages continued into the mid-
1990s, an electricity overhaul program financed by a US$148
million loan from the Inter-American Development Bank
(IDB) and a US$105 million loan from the World Bank generated
enough electricity to meet a demand for 1,250 MW by
1997. Privately operated power stations, including the 185-MW
Smith-Enron station in Puerto Plata and the 220-MW Destec
gas turbine at Los Minas, accounted for approximately half of
total power generation.
Legislation was introduced in 1997 to privatize the CDE, and
by mid-1998 the state-owned enterprise's generating and distribution
operations were being restructured (see Economic Policies,
this ch.). Transmission systems are to remain in public
ownership, however. After years of neglect resulting from the
lack of public investment by previous administrations, the
CDE's installed capacity was estimated at 1,600 MW in late
1997. However, it was operating at a maximum capacity of
1,450 MW, 380 MW of which was hydroelectric. Private generators,
which supply the CDE, have an estimated capacity of 600-
700 MW.
The Dominican Republic has been developing its hydroelectric
capacity, but imported oil continues to account for 85 percent
of its energy sources. Oil imports amount to about
100,000 barrels a day, accounting for 20 percent of total import
spending in 1997. Mexico and Venezuela have been the island
country's traditional suppliers under the San Jose agreement,
which allows 20 percent of the cost to be converted into soft
loans. Both countries agreed in 1997 to more than triple their
deliveries to the Dominican Republic—from 14,500 barrels a
day to 45,000 barrels a day.
Services
Transportation
The Dominican Republic's relatively advanced transportation
infrastructure, which had experienced sustained expan-
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