Title: ADB: Developing Best Practices for Promoting Private Sector Investment in Infrastructure - Power

Languages: English

Type: Document

Region: East Asia and Pacific, South Asia

Country: Global / Non-Specific

Sectors: Energy and Power

Topics: Procurement

Keywords: Sector, Energy and Power Core


Document Summary:

This report identifies best practices and specific steps that developing member countries (DMCs) of the Asian Development Bank (ADB) can take to encourage both private sector investment and competition in the power sector. Overall, the objective was to identify best practices that would benefit electricity consumers. In addition to power generation, where there has been by far the most private sector investment and competition to date in developing countries, this report evaluates an area that is only minimally present in the DMCs, namely private sector investment in power transmission and distribution (T&D). The important distinction in emerging competitive markets between distribution (the “wires” business) and retailing (marketing to customers) is also covered. T&D investments by the private sector have tremendous potential for increasing the efficiency of the power sector, creating a financially viable industry and benefiting all consumers.

Document Details:

This report does not identify the minimum practices required to induce investment, nor the package of best practices that may be required to induce private investment in the power sector in a specific country. Private sector investment can, and clearly does, take place without all these practices being in place. However, it is also true that this investment will be more sustainable if these best practices are in place.

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Tracking Number: DevelopingBestPracticesADB_2000_English

Updated: June 16, 2022