This report summarizes the Bolivianpower sector reform experience from 1993 until the end of1999. The reform of Bolivia's electric sector isconsidered one of the most successful to date. Bolivia optedfor both vertical and horizontal separation. Large powercompany generations units were capitalized; transmissiongrid and distribution were privatized. Since thecapitalization or privatization, there has been a dramaticexpansion in generation capacity, and distribution networksare also growing well. However, access to electricityremains limited. The main issues in the sector are now a)privatizing the smaller systems, and b) expanding access inthe under-served rural areas. A review will be essentialafter a few years of implementation. The effect of powersector reform on poverty alleviation will need to beassessed at that point.