Publication: The Impact of IPPs in Developing Countries : Out of the Crisis and into the Future
Date
1998-12
ISSN
Published
1998-12
Author(s)
Albouy, Yves
Bousba, Reda
Abstract
Developing countries started opening
their power sectors to independent power producers (IPPs)
some ten years ago, and IPPs have now developed into a large
market. This Note examines several contentious questions
relating to the developing of this market: Has risk been
transferred to the private sector, or have IPPs contributed
to an increase in government liabilities? Have IPPs
contributed an increase in foreign exchange exposure? Are
pricing and investment decisions efficient? Have IPPs
contributed to sector modernization? Answering these
questions has become more pressing with the global financial
crisis. The Note concludes that on the whole IPPs have had a
positive development impact. But negative effects become
significant when the IPP program quickly grows to a large
size relative to the host grid capacity, as has happened in
a few Asian countries.
Citation
“Albouy, Yves; Bousba, Reda. 1998. The Impact of IPPs in Developing Countries : Out of the Crisis and
into the Future. Viewpoint: Public Policy for the Private Sector; Note No. 162. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/06a9026e-3220-55ec-891d-58d7f94110c1 License: CC BY 3.0 IGO.”
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