Publication: Revisiting Public-Private Partnerships in the Power Sector
Date
2013-03-22
ISSN
Published
2013-03-22
Author(s)
Vagliasindi, Maria
Abstract
As the world demand for energy continues
to grow, a big question is where will all the energy come
from and what will the price tag be. With such enormous sums
needed, public-private partnerships (PPPs) could play a big
role. But the financial crisis has raised worries about
funding, and much is still not known about how best to
attract PPPs. This report reviews the evidence to date with
sectoral reforms and considers different approaches in
varying circumstances to help outline the potential role of
the private and public sector in: 1) strengthening the
corporate governance of private and public utilities; 2)
helping governments to establish legal, regulatory,
contractual, and fiscal frameworks; and 3) improved market
governance to attract private investment. Chapter one
reviews the impact of the recent financial crisis on PPP
investment compared with what happened in earlier financial
crises. It also looks out the latest projections for
additional power sector investment needed because of climate
change and the possible sources of financing. Chapter two
examines how PPP investment in the power sector has fared.
It also gives the results of an econometric study that
explores which types of incentives and variables matter most
to PPPs when they are weighing entering the power sector,
especially in renewables, and what influences the ongoing
level of investment. The idea is to provide a powerful
benchmarking tool at the sector and country levels against
which governments and policy makers can evaluate progress on
this issue. Chapter three examines four case studies-in
China, Brazil, Peru, and Mexico-to identify, disseminate,
and promote best practices on alternative ways to attract PPPs.
Citation
“Vagliasindi, Maria. 2013. Revisiting Public-Private Partnerships in the Power Sector. World Bank Study. © Washington, DC: World Bank. http://openknowledge.worldbank.org/entities/publication/b2e2f43e-6e6d-5f89-9f90-ea5a634e52c7 License: CC BY 3.0 IGO.”