Factors influencing finance on IPP projects in Asia: A legal framework to reach the goal

To capture faster economic growth in power sector, concerned efforts from the government for developing an appropriate legal framework is essential. It should be noted that government's involvement in independent power producer (IPP) project is a prerequisite for its development which eventually has significant influence on the financial structure of a project. This research discusses and identifies various issues that the government needs to deal with from selected case studies. Four IPP projects in Asia from India, Pakistan, Indonesia and China are evaluated and examined. The issues examined are related to Sovereign support policy, involvement of financial institutions and export credit agencies, purchase agreements, and credit enhancement mechanism. This study constitutes an attempt at providing a competitive strategy that will help government to develop a legal framework for IPP project financing. (c) 2008 Elsevier Ltd and IPMA. All rights reserved.