Private Enterprise and Financial Markets > Infrastructure and Financial Markets > Infrastructure > Energy
Energy Sector Strategy
By SDS/ENV (05/00, ENV-135, En, Es)
This Strategy (GN-1969-4) was favorably considered by the Bank's Board of Directors on March 1, 2000.
This strategy, the result of careful technical work performed at the Bank over the last three years, highlights the nature of the main challenges facing the region's energy sector (which is undergo-ing radical structural change) to provide an input that is essential to the development and well-being of communities. These challenges (the consolidation of structural reforms, the extension of modern energy options to all citizens on affordable terms, the development of patterns of energy production and consumption that are environmentally friendly, the integration of regional energy markets, and the mobilization of capital) reflect how complex it is to formulate energy policies. Energy is a main factor in all of the region's priority development areas: social reform, reform of the State, and competitiveness.
The Bank has been the main source of multilateral financing for the energy sector in the region, in particular for electricity, and has been seeing it through a difficult process of transition. How-ever, in order to continue acting as the sector's partner, the Bank has to adapt to changing circum-stances. Thus, the strategy seeks four basic goals. First, to realign all sector activities around support for the consolidation of reforms through a program mutually agreed with the country. Second, to provide comprehensive support for the development of new energy markets emerging as a result of the reforms, meeting their credit needs through the instruments and units best suited to the characteristics of each market. Third, to provide an overall approach to energy problems that addresses supply and demand. Hence, the multidisciplinary and interdepartmental activities recommended in the search for comprehensive solutions to the complex problem of urban trans-portation in the region. In addition to contributing to the primary objectives of the energy strat-egy, a number of additional benefits will accrue, including improvements in environmental qual-ity. Finally, as recommended in the new institutional strategy, the energy strategy suggests the use of new energy markets on an experimental basis.
The action plan highlights the need to draw up individual plans for each subregion, to strengthen the Bank's technical capacity and establish strategic alliances, to establish monitoring activities based on performance benchmarks, and to update the document as needed to keep it in line with the constantly changing sector.
In addition to acting as a roadmap for the Bank's activities in this sector, this paper will be very useful for guiding and enriching the Bank's programming and facilitating the dialogue with coun-try authorities as well as other stakeholders and civil society in general. There is no doubt that this paper will help the Bank continue to be the partner par excellence of the region's energy sector.
Last updated: 02/26/07
