The World Bank has approved a $400 million loan for the Dominican Republic to support reforms in the energy sector. The loan will be used to increase transparency, efficiency, and access to reliable and affordable energy, as well as to transition to cleaner energy sources. The country has been experiencing a significant fiscal burden due to the deficit generated by the electricity sector, which has been a bottleneck to green, resilient, and inclusive development. The loan will support key reforms, including the integration of renewable energy, decarbonization of the transport sector, and implementation of energy efficiency measures. The loan will also help improve the sector’s financial sustainability and reduce its fiscal burden, leading to improved fiscal space and public spending efficiency. These efforts will contribute to poverty alleviation and promote social inclusion.