ETED and IDB Seek Deals With Local Banks for Future Power Grid Projects

The Dominican Republic's power transmission sector is preparing new tenders worth US$156 million, backed by the IDB and local banks.

The Dominican Electric Transmission Company (ETED) and the Inter-American Development Bank (IDB) brought together representatives of the national commercial banking sector to discuss the guarantees that future power transmission tenders will require. The meeting was held on October 15 at the ETED headquarters.

The session is part of the preparatory work for operation DR-L1178, which includes a planned US$156 million IDB financing. According to the official statement, that amount is included in the current year's national budget and remains subject to the corresponding approvals.

The projects include dynamic reactive compensation equipment and expansions at the San Francisco de Macorís, Azua II, Guerra and Guayubín substations. The goal is to improve the operating conditions and reliability of the Sistema Eléctrico Nacional Interconectado (SENI), the national interconnected electricity system.

Among the ETED participants were Franklin Olivo, director of Engineering and Projects, and Remy Tejada, chief financial officer. The IDB was represented by Sergio Ballón, energy specialist, and José Romay, consultant for external products and services.

The discussion covered how to align the IDB's procurement requirements with Dominican banking procedures. Topics included advance and performance guarantees, issuance timelines, renewals, costs, and mechanisms to back foreign contractors and consortiums. A central issue was reviewing guarantee texts before tenders are launched, to reduce delays between contract award and contract signing.

The dialogue aims to prepare the schedule for the operation's first tenders, expected in 2027.