Financing of Private Hydropower Projects

This study provides an overview of the issues and challenges related to the private financing of hydropower projects in developing countries. From the very limited pool of projects that have already reached or are nearing financial closure, ten hav...

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Main Author: Head, Chris
Format: Publication
Language:English
en_US
Published: Washington, DC: World Bank 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2000/07/436947/financing-private-hydropower-projects
http://hdl.handle.net/10986/15190
id okr-10986-15190
recordtype oai_dc
spelling okr-10986-151902021-04-23T14:03:11Z Financing of Private Hydropower Projects Head, Chris ACCOUNTING ADB BALANCE SHEET BANK OF JAPAN BANKING SECTOR BENEFITS OF HYDROPOWER BROKERS CAPITAL MARKETS CLEAN RENEWABLE SOURCES DEBT DEREGULATION DEVOLUTION ECONOMICS ENVIRONMENTAL IMPACT ASSESSMENT ENVIRONMENTAL SENSITIVITIES EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL STRENGTH FINANCIAL STRUCTURES FOREIGN EXCHANGE HEALTH CARE HEALTH CARE FINANCING HYDRO CAPACITY HYDRO ENERGY HYDRO INDUSTRY HYDRO POTENTIAL HYDRO PROJECT HYDRO PROJECTS HYDRO SCHEMES HYDROLOGICAL RISK HYDROPOWER DEVELOPMENT HYDROPOWER GENERATION HYDROPOWER PROJECTS INFLATION INSURANCE LARGE HYDRO PROJECTS LARGE HYDROPOWER LOCAL GOVERNMENT MARKET RISK MATURITY MICROFINANCE MULTILATERAL DEVELOPMENT BANKS NATURAL RESOURCES OFFTAKE AGREEMENTS OPERATING COSTS POWER CAPACITY POWER STATIONS PRIVATE HYDRO DEVELOPMENT PRIVATE HYDROPOWER PRIVATE SECTOR PRIVATIZATION PROJECT FINANCE REGULATORY FRAMEWORK RISK SHARING RISK TAKING SAFETY NETS SOCIAL SERVICES TECHNICAL ASSISTANCE TERM FINANCE TRANSITION ECONOMIES TRANSPARENCY TRANSPORT HYDROPOWER PROJECTS HYDROELECTRIC POWER PLANTS FINANCE THERMAL POWER CONCESSION AWARD REGULATORY FRAMEWORK EQUITY FINANCE DEBT FINANCING CONTRACTORS GOVERNMENT ROLE PRIVATE INFRASTRUCTURE GREENFIELD PROJECTS This study provides an overview of the issues and challenges related to the private financing of hydropower projects in developing countries. From the very limited pool of projects that have already reached or are nearing financial closure, ten have been chosen for the study from five countries with the most active in promoting private hydro development. Collectively the case study projects provide a reasonable cross-section of private hydro schemes that have been or are being developed. The financing of greenfield private infrastructure on a limited-recourse basis in developing countries faces certain common issues irrespective of the type of project. However, hydropower faces additional difficulties caused by the site-specific nature of projects, high construction risk and long construction periods, their capital-intensive nature with a high proportion of local costs, unpredictable output subject to river flows and broader water management constraints, complex concession process to achieve transparency in the award and pricing of output, and environmental sensitivities. The study suggests the need for longer-term financing to better suit hydropower characteristics, a regulatory framework and realistic public-private risk-sharing arrangements responsive to the requirements of hydropower projects, and the careful preparation of projects by the public sector to enable their formulation on an adequate technical and contractual basis for development as a private concession. 2013-08-19T21:28:14Z 2013-08-19T21:28:14Z 2000-07 http://documents.worldbank.org/curated/en/2000/07/436947/financing-private-hydropower-projects 0-8213-4799-3 http://hdl.handle.net/10986/15190 English en_US World Bank Discussion Paper;No. 420 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication East Asia and Pacific Europe and Central Asia Latin America & Caribbean South Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
ADB
BALANCE SHEET
BANK OF JAPAN
BANKING SECTOR
BENEFITS OF HYDROPOWER
BROKERS
CAPITAL MARKETS
CLEAN RENEWABLE SOURCES
DEBT
DEREGULATION
DEVOLUTION
ECONOMICS
ENVIRONMENTAL IMPACT ASSESSMENT
ENVIRONMENTAL SENSITIVITIES
EXPENDITURES
FINANCIAL INSTITUTIONS
FINANCIAL STRENGTH
FINANCIAL STRUCTURES
FOREIGN EXCHANGE
HEALTH CARE
HEALTH CARE FINANCING
HYDRO CAPACITY
HYDRO ENERGY
HYDRO INDUSTRY
HYDRO POTENTIAL
HYDRO PROJECT
HYDRO PROJECTS
HYDRO SCHEMES
HYDROLOGICAL RISK
HYDROPOWER DEVELOPMENT
HYDROPOWER GENERATION
HYDROPOWER PROJECTS
INFLATION
INSURANCE
LARGE HYDRO PROJECTS
LARGE HYDROPOWER
LOCAL GOVERNMENT
MARKET RISK
MATURITY
MICROFINANCE
MULTILATERAL DEVELOPMENT BANKS
NATURAL RESOURCES
OFFTAKE AGREEMENTS
OPERATING COSTS
POWER CAPACITY
POWER STATIONS
PRIVATE HYDRO DEVELOPMENT
PRIVATE HYDROPOWER
PRIVATE SECTOR
PRIVATIZATION
PROJECT FINANCE
REGULATORY FRAMEWORK
RISK SHARING
RISK TAKING
SAFETY NETS
SOCIAL SERVICES
TECHNICAL ASSISTANCE
TERM FINANCE
TRANSITION ECONOMIES
TRANSPARENCY
TRANSPORT HYDROPOWER PROJECTS
HYDROELECTRIC POWER PLANTS FINANCE
THERMAL POWER
CONCESSION AWARD
REGULATORY FRAMEWORK
EQUITY FINANCE
DEBT FINANCING
CONTRACTORS
GOVERNMENT ROLE
PRIVATE INFRASTRUCTURE
GREENFIELD PROJECTS
spellingShingle ACCOUNTING
ADB
BALANCE SHEET
BANK OF JAPAN
BANKING SECTOR
BENEFITS OF HYDROPOWER
BROKERS
CAPITAL MARKETS
CLEAN RENEWABLE SOURCES
DEBT
DEREGULATION
DEVOLUTION
ECONOMICS
ENVIRONMENTAL IMPACT ASSESSMENT
ENVIRONMENTAL SENSITIVITIES
EXPENDITURES
FINANCIAL INSTITUTIONS
FINANCIAL STRENGTH
FINANCIAL STRUCTURES
FOREIGN EXCHANGE
HEALTH CARE
HEALTH CARE FINANCING
HYDRO CAPACITY
HYDRO ENERGY
HYDRO INDUSTRY
HYDRO POTENTIAL
HYDRO PROJECT
HYDRO PROJECTS
HYDRO SCHEMES
HYDROLOGICAL RISK
HYDROPOWER DEVELOPMENT
HYDROPOWER GENERATION
HYDROPOWER PROJECTS
INFLATION
INSURANCE
LARGE HYDRO PROJECTS
LARGE HYDROPOWER
LOCAL GOVERNMENT
MARKET RISK
MATURITY
MICROFINANCE
MULTILATERAL DEVELOPMENT BANKS
NATURAL RESOURCES
OFFTAKE AGREEMENTS
OPERATING COSTS
POWER CAPACITY
POWER STATIONS
PRIVATE HYDRO DEVELOPMENT
PRIVATE HYDROPOWER
PRIVATE SECTOR
PRIVATIZATION
PROJECT FINANCE
REGULATORY FRAMEWORK
RISK SHARING
RISK TAKING
SAFETY NETS
SOCIAL SERVICES
TECHNICAL ASSISTANCE
TERM FINANCE
TRANSITION ECONOMIES
TRANSPARENCY
TRANSPORT HYDROPOWER PROJECTS
HYDROELECTRIC POWER PLANTS FINANCE
THERMAL POWER
CONCESSION AWARD
REGULATORY FRAMEWORK
EQUITY FINANCE
DEBT FINANCING
CONTRACTORS
GOVERNMENT ROLE
PRIVATE INFRASTRUCTURE
GREENFIELD PROJECTS
Head, Chris
Financing of Private Hydropower Projects
geographic_facet East Asia and Pacific
Europe and Central Asia
Latin America & Caribbean
South Asia
relation World Bank Discussion Paper;No. 420
description This study provides an overview of the issues and challenges related to the private financing of hydropower projects in developing countries. From the very limited pool of projects that have already reached or are nearing financial closure, ten have been chosen for the study from five countries with the most active in promoting private hydro development. Collectively the case study projects provide a reasonable cross-section of private hydro schemes that have been or are being developed. The financing of greenfield private infrastructure on a limited-recourse basis in developing countries faces certain common issues irrespective of the type of project. However, hydropower faces additional difficulties caused by the site-specific nature of projects, high construction risk and long construction periods, their capital-intensive nature with a high proportion of local costs, unpredictable output subject to river flows and broader water management constraints, complex concession process to achieve transparency in the award and pricing of output, and environmental sensitivities. The study suggests the need for longer-term financing to better suit hydropower characteristics, a regulatory framework and realistic public-private risk-sharing arrangements responsive to the requirements of hydropower projects, and the careful preparation of projects by the public sector to enable their formulation on an adequate technical and contractual basis for development as a private concession.
format Publications & Research :: Publication
author Head, Chris
author_facet Head, Chris
author_sort Head, Chris
title Financing of Private Hydropower Projects
title_short Financing of Private Hydropower Projects
title_full Financing of Private Hydropower Projects
title_fullStr Financing of Private Hydropower Projects
title_full_unstemmed Financing of Private Hydropower Projects
title_sort financing of private hydropower projects
publisher Washington, DC: World Bank
publishDate 2013
url http://documents.worldbank.org/curated/en/2000/07/436947/financing-private-hydropower-projects
http://hdl.handle.net/10986/15190
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