The Cabinet published (October 5th) the law for implementing an energy plan to boost electricity production across the country. The law was approved by Parliament in September.

Law 181 stated the allocation of LL1,772 billion ($1.2 billion) for building and operating power plants to produce 700 megawatts of electricity, as well as for transferring and distributing the produced energy.

The Law divided the funding of the project into four installments to be paid over four years. The first installment, due in 2011, is LL414 million; the second installment, due in 2012, is LL460 million; the third installment, due in 2013, is LL518 million; the fourth installment, due in 2014, is LL380 million.

According to the Law, the project would be funded through extraordinary revenues. The government could seek funding sources through facilitated loans and/or through issuing Lira-denominated treasury bills or Eurobonds. The Law also stated that the Prime Minister would seek the needed funding through regional or international funds or organizations.

The Law stipulated the formation of a board chaired by the Prime Minister and with the membership of the deputy PM and each of the following Ministers: Public Health, Finance, State for Administrative Reform, Social Affairs, Energy and Water, Labor, Justice, and Economy and Trade. The board is tasked with looking into the amendments to Law 462 (for regulating the energy sector) during a period of three months. The board should also appoint a committee for regulating the electricity sector.