This book is an invaluable guide to the regulatory and licensing issues and typical contractual structures for independent power projects. It describes in-depth the key legal issues for project lenders and developers in the negotiation of a successful private power project.
Extract from the Introduction
This report is intended as a practical guide to lenders involved in the financing of power projects and for project sponsors and developers seeking financing for their projects.
Opportunities for private sector participation in power lie broadly in two main areas: greenfield projects and the acquisition of existing assets. In the former, most of the activity to date has been in the generation sector, rather than in transmission or distribution. power generation projects, by their nature, are by and large more conducive to private sector investment in the development of new assets, although opportunities are now occurring in the transmission sector.
Opportunities for the acquisition of existing assets can be divided into two main categories. Firstly, the acquisition of discrete facilities (most often generation facilities) and secondly, the acquisition of an interest in an undertaking involving a network of assets, for example, through the privatisation of a state-owned undertaking.
Within these basic categories a number of permutations occur and it is impossible to address in any comprehensive manner all of the issues relevant to financing projects across the whole of this spectrum in a report of this length. Projects of different natures will, however, often share common issues. For example, a project involving the acquisition of a discrete generation asset will face many of the issues inherent in a greenfield 'independent power production' (IPP) project, minus the construction phase. On the other hand, issues arising in an IPP project selling to a monopoly state-owned power market may differ significantly from those arising in projects selling power to a power pool under a privatised distribution market. In this case many of the issues considered in the context of privatisation will be relevant. As many issues arise out of the nature of the underlying market as arise from the nature of the transaction itself.
Contents
1. Structures and trends in private power
Overview
Structures and trends in Asian private power
Structures and trends in private power in Eastern Europe and the former Soviet Union
2. Independent Projects
Introduction
Financeability issues
Project documentation
Key project issues
3. Privatisation of power utilities
Introduction
Issues - overview
Regulatory framework
Appendices
The Peoples Republic of China
The State of Victoria, Australia
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