Output-Based Aid in Bolivia : Balanced Tender Design for Sustainable Energy Access in Difficult Markets

This newsletter looks at how Bolivia is implementing an innovative public-private approach to increase rural electricity access to extremely remote areas via Solar Home Systems (SHS) and how Novel Medium-term Service Contracts (MSCs) balance the Government's wish for sustainable service and maximum control with providers' aim for minimal risk exposure. The newsletter also provides information on the overall success of the MSC approach to bidding out SHS services, and how it can only be judged at a later stage, as installations have only just begun. In conclusion, the successful tender award and the efficiency gains achieved show that this new model merits closer analysis and the current administration has taken the underlying public-private approach as a cornerstone of its new universal access policy for the electricity sector.

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Bibliographic Details
Main Authors: Reiche, Killian, Rysankova, Dana, Goldmark, Susan
Language:English
Published: World Bank, Washington, DC 2007-03
Subjects:ACCESS TO ELECTRICITY, ALTERNATIVE ENERGIES, APPROACH, BALANCE, BIDDING, BIDDING PROCESS, BUSINESS DEVELOPMENT, BUSINESS DEVELOPMENT SERVICES, BUSINESS MODELS, CASH FLOW, COMMUNICATIONS TECHNOLOGIES, CONCESSION, CONCESSION TENDERS, DATA COLLECTION, ELECTRICITY, ELECTRICITY SECTOR, ELECTRIFICATION, GRID ELECTRIFICATION, GRID EXTENSION, GRID MARKETS, ICT, INFRASTRUCTURE SERVICES, INNOVATIONS, INVESTMENT CLIMATE, MARKET CONDITIONS, MONOPOLY PRICING, OPEN COMPETITION, PERFORMANCE INDICATORS, PRICE CAPS, PRIVATE PROVIDERS, PUBLIC PERCEPTION, RADIO, ROAD, SERVICE CONTRACTS, SERVICE LEVELS, SERVICE PROVIDERS, SOLAR HOME SYSTEMS, SOUTH AMERICA, TECHNICIANS, TELECOMMUNICATION, TELECOMMUNICATIONS, TELEVISION, TRANSACTION COSTS, TRANSPARENCY, TRANSPORT, UNIVERSAL ACCESS, WILLINGNESS TO PAY, WINNING BIDDERS,
Online Access:http://documents.worldbank.org/curated/en/2007/03/7557825/output-based-aid-bolivia-balanced-tender-design-sustainable-energy-access-difficult-markets
https://hdl.handle.net/10986/11032
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