Page "Economy of the Dominican Republic" Paragraph 5

An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system.

Three regional electricity distribution systems were privatized in 1998 via sale of 50 % of shares to foreign operators ; the Mejía administration repurchased all foreign-owned shares in two of these systems in late 2003.

The third, serving the eastern provinces, is operated by U. S. concerns and is 50 % U. S .- owned.

The World Bank records that electricity distribution losses for 2005 totaled about 38. 2 %, a rate of losses exceeded in only three other countries.

Industry experts estimate distribution losses for 2006 will surpass 40 %, primarily due to low collection rates, theft, infrastructure problems and corruption.

At the close of 2006, the government had exceeded its budget for electricity subsidies, spending close to U. S. $ 650 million.

The government plans to continue providing subsidies.

Congress passed a law in 2007 that criminalizes the act of stealing electricity, but it has not yet been fully implemented.

The electricity sector is a highly politicized sector and with 2008 presidential election campaigning already in motion, the prospect of further effective reforms of the electricity sector is poor.

Debts in the sector, including government debt, amount to more than U. S. $ 500 million.

Some generating companies are under capitalized and at times unable to purchase adequate fuel supplies.