Securing Performance in Power Projects

ISBN-13: 9783639148398 / Angielski / Miękka / 2009 / 64 str.

Gergely Szalki

Opis

Project finance should promote not only the economic benefits of the project participants, but shouldalso promote the social and economic development ofthat country where it is located. Investors look forpredictable legal environment in order to makeprofit at lower costs; host countries, in turn, wantto obtain assurance that the project will serve its public interest. How can the stakeholders conciliate their interests in a power project? Power purchase agreement based model guarantees a stable market for the electricity produced by the power plant. This is of highest importance for the investors, since the power purchaser provides the sole revenue stream of the project. However, this model does not push the project company to develop technology and reduce the production cost. The merchant power model provides incentives for that, however, it does not provide stable revenue thereby discouraging large-scale investments. How can this problem be solved? And - most importantly - what kind of instruments the project participants have got to secure the performance of the others, upon which the entire project depends? This work aims to answer these questions.

O autorze

The author has graduated at the Central European
University and gained experience in the field of project finance
working as lawyer at the European Investment Bank and Hankook
Tire Hungary Ltd.