Electricity Sector in Haiti - Investment and Financing

Investment and Financing

Investment in the electricity sector in Haiti has been very low. The combination of a culture of non-payment for electricity services, fairly high consumer tariffs, a low base of metered customers, a lack of support from the authorities to combat corruption and fraud, a weak anti-fraud unit in EdH and widespread electricity theft had led to extremely low levels of cost recovery, which in turn has resulted into an inefficient and decrepit electricity network and a high level of financial losses.

According to studies financed by different donors, some of which need to be updated, there is an important need for investment in generation, transmission and distribution. The estimates are:

• Generation: US$135 to US$395 million (including medium-term hydroelectricity projects)
• Transmission and distribution: US$55 million

In fact, investment in the transmission network is essential since there is almost no reliable network between the main production and consumption centers and the existing lines thus would not be able to transmit newly generated electricity to the consumers.

As part of its Strategy for the Development of the Electricity Sub-Sector, the Haitian government hopes to be able to undertake the rehabilitation and renovation of the electricity system in the capitals of the ten departments and in some other cities. The cost of this project has been estimated at US$42 million.