The East Asian Financial Crisis : Fallout for Private Power Projects

Abstract

The authors discuss the impact of the East Asian financial crisis on the power sectors of four of the most severely affected economies-Indonesia, Malaysia, the Philippines, and Thailand. For each country the authors examine the impact of the crisis on the cost of private power and the knock-on effects on retail tariffs. They also assess the sustainability of current private power programs, which hinges on the level of government risk exposure, the method used in awarding contracts, and the changed capacity needs in the wake of slowing or negative GDP growth.