Sustainability of Reform in Central America: Market Convergence and Regional Integration

The objective of this paper is to assesses the Central American power sector reforms and suggest an integrated framework for promoting sustainability of electricity sector reform in the six countries of the Central American isthmus. Whilst the paper draws on experiences gained in other parts of the world, it explicitly takes into account the particular characteristics of the region. It concurs with the view that competition in the six Central American states is limited by their technical and institutional constraints but suggests that these can be overcome over time by establishing appropriate regulatory regimes and pursuing a policy of regional market convergence that ultimately results in full regional integration.