Electrokit | IADB

Operations, Commercial and Financial Infrastructure plan

Infrastructure plan

Establish a dedicated infrastructure investment plan in the distribution network and secure resources to reduce vulnerability and adulteration of equipment and connections. Provide modern meter facilities with monitoring facilities and an engineering sector in charge of technically analyzing the technical losses of the system and seeking new technical solutions. The plan should also have a well-established technical loss calculation and quantification methodology based on internationally recognized references or existing national regulations. One of these methodologies10 to evaluate the cost of loss is provided by “Guide for the Evaluation of Large Power Transformer Losses” and its reference is provided in the next section. Verify the current cost of losses and analyze possible solutions to reduce prioritizing the actions with the highest return for the company, investing in those with a positive net present value (NPV).


Identifying and securing financial resources have been critical conditions for the successful development of an electricity loss program. These financial resources, ideally with concessional terms, would ensure availability of investments over time and clearly established targets. The program would also determine the destination of the additional income resulting from the regularization. Any loss program must be preceded by an economic and financial analysis; and have specific sources of financing for projects and/or supported by public agents in the country. These investment resources can be from multilateral banks with advantageous commercial conditions and long-term amortizations, or from the utility’s income and balance sheet.