Private Rural Power : Network Expansion Using an Output-Based Scheme in Guatemala
In 1998 the government of Guatemala privatized the two companies responsible for distributing electricity in rural areas. The new owner, Union Fenosa, was obliged to implement an ambitious five-year rural electrification program. The goal: to incre...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2002/06/2002843/private-rural-power-network-expansion-using-output-based-scheme-guatemala http://hdl.handle.net/10986/11341 |
| Summary: | In 1998 the government of Guatemala
privatized the two companies responsible for distributing
electricity in rural areas. The new owner, Union Fenosa, was
obliged to implement an ambitious five-year rural
electrification program. The goal: to increase the share of
households with an electricity connection from 64 percent to
90 percent by 2004. Under this output-based scheme the two
companies are paid US$650 for each eligible residential
connection made. If no connections are made, no payment is
made. So far the scheme has performed well-completing
122,000 new rural connections between May 1999 and May
2002-and is on track for the 2004 targets. |
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