Output-Based Aid in Bolivia: Balanced Tender Design for Sustainable Energy Access in Difficult Markets
Bolivia is implementing an innovative public-private approach to increase rural electricity access to extremely remote areas via Solar Home Systems (SHS). 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 GPOBA project, which was approved in 2007, built on the experience of the Infrastructure for Rural Transformation (IDTR) project. It was comprised of grants totaling $5.2 million to support the provision of electricity under the framework of the Government’s universal access strategy.