Unless there is a significant change in the cost structure which Dominican manufacturers face, prospects for their competitiveness will worsen. A static exchange rate and solid economic growth have led to surging imports. Foreign private producers have added over 450 megawatts of capacity since 1990. However, in given soaring demand, poor maintenance of CDE's transmission and distribution facilities, and the lack of incentive for energy conservation, this increased capacity is insufficient to resolve the problem. Load shedding is a common practice and virtually all industrial enterprises have their own back-up power.
Some large firms maintain completely independent electricity supplies.
As noted above, legislation to allow the privatization of CDE and other state-owned enterprises was passed in June 1997. CDE's privatization, headed by the Commission for the Reform of Public Enterprises, is now expected to take place in the fall of 1998. The Dominican Republic has a well developed road network, which the Government continues to improve. Nevertheless, as in most developing countries, some of the roads and highways are considered to be in poor and dangerous condition. Truckers belong to syndicates that regulate prices, increasing the price of haulage.