Private Enterprise and Financial Markets > Infrastructure and Financial Markets > Infrastructure > Energy
Sustainability of Reform in Central America: Market Convergence and Regional Integration
By Richard Tomiak, Jaime Millán (01/02, En, Es)
The objective of this paper is to assesses the Central American power sector reforms and suggest an integrated framework for promoting sustainability of electricity sector reform in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Whilst the paper draws on experiences gained in other parts of the world, it explicitly takes into account the particular characteristics of the region. It concurs with the view that competition in the six Central American states is limited by their technical and institutional constraints but suggests that these can be overcome over time by establishing appropriate regulatory regimes and pursuing a policy of regional market convergence that ultimately results in full regional integration.
The paper is organized as follows: Section 1 presents an Introduction then Section 2 provides an assessment of the prospects for regional integration in Central America by referring to four lessons drawn from the European experience. Section 3 considers the nature of the various constraints faced by the individual Central American states during their complicated transition towards a more competitive energy sector. Finally, Section 4 presents the conclusions that have been reached and the recommendations that emerge from them.
Last updated: 02/26/07
