Skip to main content
Expenditures Rural Electricity Distrib.
s objectives are to: (a) improve reliability and quality of service to customers by meeting international standards, thus creating the conditions for sales growth; (b) reduce technical losses due to inefficiencies in the distribution network; (c) minimize non-technical losses deriving from inefficient measurement processes and from inadequate administrative and commercial management; and (d) increase the number of connections in rural areas.

Project Detail

Country

Guatemala

Project Number

TC0009022

Approval Date

January 3, 2001

Project Status

Closed

Project Type

Technical Cooperation

Sector

ENERGY

Subsector

ENERGY

Lending Instrument

BID Invest

Lending Instrument Code

IIC

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 750,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 750,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/JF-7310-GU Non-Sovereign Guaranteed USD - United States Dollar Japan Special Fund Nonreimbursable
Operation Number ATN/JF-7310-GU
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Japan Special Fund
  • Financial Instrument: Nonreimbursable
Publications
Published 2022
Allocative Efficiency of Government Spending for Growth in Latin American Countries
There is scant empirical economic research regarding the way that Latin American governments efficiently allocate their spending across different functions to achieve higher growth. While most papers restrict their analysis to the size of government, much less is known about the composition of spending and its implications for long-term growth. This paper sheds light on how allocating expenditures to investment in quality human and physical capital, and avoiding waste on inefficient expenditures, enhance growth in Latin America. This paper uses a novel dataset on physical and human capital and detailed public spending that includes -for the first time- Latin American countries, which is categorized by a cross-classification that provides the breakdown of government expenditure, both, by economic and by functional heads. The database covers 42 countries of the OECD and LAC between 1985 and 2017. There are five main results. First, the estimated growth equations show significant positive effects of the factors of production on growth and plausible convergence rates (about 2 percent). The estimated effect of the physical investment rate is positive and significant with a long-run elasticity of 1.2. Second, while the addition of years of education as a proxy for human capital tends to have no effect on growth, the addition of a new variable that measures quality-adjusted years of schooling as a proxy for human capital turns out to have a positive and significant effect across all specifications with a long-run elasticity of 1.1. However, if public spending on education (excluding infrastructure spending) is added to the factor specification, growth is not affected. This is mainly because, once quality is considered, spending more on teacher salaries has no effect on student outcomes. Therefore, the key is to increase quality, not just school performance or education spending. Third, both physical and human capital are equally important for growth: the effect of increasing one standard deviation of physical capital or human capital statistically has the same impact on economic growth. Fourth, increasing public investment spending (holding public spending constant) is positive and significant for growth (a 1% increase in public investment would increase the long-term GDP per capita by about 0.3 percent), in addition to the effect of the private investment rate. However, the effect of public spending on payroll, pensions and subsidies does not contribute to economic growth. Fifth, the overall effect of the size of public spending on economic growth is negative in most specifications. An increase in the size of government by about 1 percentage point would decrease 4.1 percent the long-run GDP per capita, but the more effective the government is, the less harmful the size of government is for long-term growth.
Publications
Published 2022
Options for a Reform of the Mexican Intergovernmental Transfer System in Light of International Experiences
This paper focuses on the design of intergovernmental transfers to reduce vertical and horizontal fiscal imbalances and improve the performance of subnational governments. It provides an overview of international experiences, especially of large federations, with a view to devising viable options for reform of the transfer system in Mexico. While there is no one-size-fits-all ideal model of design and implementation of intergovernmental transfer systems, this analysis points to some lessons that can inform reforms, including the need to view intergovernmental transfers as an integral part of the overall system of intergovernmental fiscal relations; the use of different types of intergovernmental transfers that are best suited to fulfill different objectives; and the incorporation of equalization schemes to address regional disparities. In the light of these experiences, we find that the current Mexican transfer system is too fragmented, is linked to volatile oil revenues, involves substantial discretion in the allocation of a significant portion of the transfers, and lacks sufficient equalizing power. This paper presents and discusses possible reform options and demonstrates that it is altogether possible to reduce transfer dependence to promote effort and fiscal responsibility; simplify the system to increase predictability and ease its administration; eliminate discretion to increase transparency and establish stronger subnational budget constraints; and improve fiscal equalization to promote equity in subnational service delivery. Careful consideration of political economy dynamics is given in the simulations of possible reforms, with a view to minimizing short-term gains and losses as well as political opposition.
Blogs
Published 2021
¿Podría el acceso a la electricidad contribuir a la felicidad en el interior de Surinam?
Un proyecto de electrificación en el interior de Surinam —conocido como el Hinterland— ha llevado a los investigadores a pensar que la electricidad podría ser una de las claves de la felicidad. Desde luego, es una afirmación osada pero no es nueva. Un estudio reciente sobre el impacto de un proyecto respaldado por el BID
Publications
Published 2019
Infraestructura para el desarrollo - Vol. 3, No. 3: Cómo electrificar el campo en Ecuador
A través de esta serie de casos de estudio, el Departamento de Infraestructura y Energía del BID pretende dar a conocer su trabajo en la región, los problemas que aborda, los retos en la implementación de sus proyectos y las lecciones aprendidas a partir de los mismos. Cómo electrificar el campo en Ecuador representa el tercer caso de estudio del tercer volumen de la serie "Infraestructura para el desarrollo".
Publications
Published 2020
Enhancing Energy Efficiency to Increase Affordability: Evidence from Residential Lighting Retrofit in Peru
In this paper, we discuss the Peruvian retrofit lighting program that was part of the National Energy Plan 2014-2025. Using data from the Residential Survey on Consumption and Uses of Energy or Encuesta Residencial de Consumo y Usos de Energía (ERCUE) for the waves 20142015, 2016, and 2018, we find that households have greatly benefited by replacing incandescent light bulbs with energy-saving and LED bulbs between the year of implementation of the program, and 2018. Based on this data, we see that surveyed households have reduced their expenditure on electricity. Furthermore, compared to 2014-2015, since 2018, the poorest households (in the survey) have become less sensitive to changes in their monthly electricity expenditure. They have been able to meet their energy needs with higher consumption, and use energy-saving light bulbs due to the wide implementation of the program. These findings may help policy makers understand the impact of successful energy efficiency programs on households. In the context of developing countries, where affordability of services is a challenge, this work gives a novel perspective on the expectations of energy efficiency as a means to overcome this challenge.
Blogs
Published 2021
Energizados, una herramienta para automatizar la detección de fraudes eléctricos
¿Sabías que más de 50 millones de viviendas de la región se podrían haber abastecido con electricidad durante todo el 2019, utilizando las pérdidas generadas en los sistemas de transmisión y distribución[1]? Para disminuir estas pérdidas, el BID ha desarrollado Energizados, una herramienta que usa inteligencia artificial para automatizar la detección de fraudes eléctricos. Para
Blogs
Published 2020
El empleo en tiempos de pandemia: oportunidades en proyectos de electrificación rural
Resulta muy esperanzador ser testigo de cómo la electricidad cambia la vida de las personas cuando pueden tener este servicio tan esencial por primera vez. Es innegable que el acceso a la energía eléctrica provoca un cambio profundo en las poblaciones que nunca lo tuvieron. Este cambio puede tener un doble impacto en los proyectos
Blogs
Published 2020
Ecuador y el impacto en el aumento de su cobertura eléctrica
Cuando se repasa la historia de América Latina es muy grato encontrar a Loja, pequeña ciudad andina al sur de Ecuador, como la primera ciudad ecuatoriana en ser alumbrada con energía eléctrica en 1899, tan solo unos años después de la célebre iluminación de Pearl Street en Manhattan, que es considerada como el primer sistema
Publications
Published 2022
Municipal Fiscal Health in Latin America
Cities are important drivers of productivity, innovation, and economic growth. To achieve their full economic potential, cities must deliver high-quality public services to their residents and businesses. This is very important for Latin American cities given rapid urbanization and the deepening of decentralization reforms in many countries. The extent to which they can carry out all of these responsibilities depends at least partially on their fiscal health, ability to meet their service, infrastructure, and financial obligations with the revenue available to them. This study assesses the fiscal health of 80 main cities in Brazil, Colombia, Mexico, and Peru, from 2010 to 2017, and explores the factors that drive it. A primary purpose is to provide a methodology for cities to assess their own fiscal health, given available data. As such, it helps to determine whether fiscal distress is building up in selected large cities across the region and to understand whether and how financial solvency, public service delivery, and the maintenance and expansion of urban infrastructure may be compromised.
Publications
Published 2022
Research Insights: Do Changes in the Composition of Public Spending Affect the Macroeconomic Consequences of Fiscal Adjustments?
Si bien las consolidaciones fiscales tienden a ser contractivas, el tamaño de la caída del producto depende de la composición de los recortes del gasto público. Una consolidación fiscal del 1% del PIB implementada mediante la reducción de la inversión pública en lugar del consumo público reduce el producto en un 0,7% en un plazo de tres años. En cambio, proteger la inversión pública de los recortes presupuestarios en relación con el consumo público puede neutralizar los efectos contractivos de los ajustes fiscales en el corto plazo, e incluso puede estimular el crecimiento del producto a mediano plazo.
Powered by FindIT
Jump back to top