Pacific Economic Monitor - July 2018

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Access to electricity is low in the Pacific, particularly in the more remote and less developed parts of the subregion. Factors contributing to this include dependence on costly fossil fuels for power generation, inadequate investment in infrastructure, and electricity services that may be beyond the means of poorer rural households.

To help address these challenges, most Pacific governments are taking steps to shift toward renewable energy and ultimately meet ambitious targets under international climate change commitments. Further, they have made strategic investments in more effi cient transmission networks, and better collection and payment systems.

Such measures must be complemented by improvements in the performance of state-owned utilities, who are typically responsible for providing electricity services in Pacific economies, including further promotion of private sector participation and clarifying policies behind tariff-setting to ensure financial self-sustainability and minimize the need for government support.

Highlights

Policy Briefs

Access to basic utilities is both a human right and fundamental to upholding human rights. However, the big differences in the degrees of access across sectors and among Pacific economies highlight the hindrances faced by utilities in improving the quality and reach of their services. These include weak institutional capacity and financial management, and lack of planning, coordination, and policy support.

Building a more efficient and financially self-sufficient utilities sector requires change on all levels of implementation. These can range from developing human resources, to promoting commercially oriented utilities, to developing a holistic and programmatic approach to sector management, to ensuring that the necessary legal, policy, and regulatory support is in place to improve performance and extend services to a greater share of the population.

About the Pacific Economic Monitor

The Pacific Economic Monitor provides an update of developments in Pacific economies and explores topical policy issues. This bi-annual publication is produced by ADB with contributions from development partners and knowledge organizations engaged in economic analysis of the Pacific.

  • Highlights
  • The Economic Setting
  • Country Economic Issues
  • Policy Briefs
    • Improving access to utilities in the Pacific
    • Sustainable energy in the Pacific—back to basics
    • Institutional reform to improve water services in Timor-Leste
  • Economic Indicators
 

 
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Source URL: https://www.adb.org/publications/pacific-economic-monitor-july-2018