Emergency Power Procurement Toolkit

NOTE: This Toolkit has not yet been peer reviewed within the World Bank, and as a result, it is NOT yet an official World Bank publication.

The procurement by state-owned utilities of emergency supplies of power to cope with unanticipated shortages of generating capacity is becoming an increasingly common activity in developing countries. The reasons for procurement of emergency power are varied – natural disasters; droughts, catastrophic failures, or simply inadequate planning, resulting in an inability to meet increased demand.

Since these procurements are undertaken in emergency situations, the potential for agreements financially disadvantageous to the state and the likelihood for corruption are high.

To address these concerns, this Toolkit provides in-depth discussion of potential issues and solutions, suggested methodology for procuring emergency power, a schedule for financing and procurement, as well as forms of procurement documents (including a sample Power Purchase Agreement, PPA, and Government Support Agreement, GSA) to be used to solicit the requisite supplies. Since these documents are of a highly technical and legal nature, experienced lawyers and procurement specialists should review them to ensure that they reflect project-specific requirements and local laws.

Other resources:

To learn more about this subject, visit the Energy and Power PPPs section.

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Updated: December 15, 2022