Four business models to facilitate private investment in transmission
There is currently a need for significant additional investment in transmission on the continent of Africa. This need is unlikely to be met through the existing sources of funding for the sector. Four different business models could be used to facilitate private investment in transmission.
An Introduction to Independent Transmission Projects
An independent transmission project (ITP) is a good way to attract capital into the transmission sector to fund key infrastructure and to transfer risk to the private sector. Although ITPs are extensively used in Latin America, India, the U.S., and the U.K, the use of ITPs in Africa are almost non-existent. This article examines ITPs, including the circumstances in which an ITP may be attractive to both host countries and investors and some of the challenges that are typically encountered in structuring these transactions.
Allocating Risks in Independent Transmission Projects
One of the benefits of ITPs is that they can be structured to take advantage of project finance techniques. One of the keys to raising debt for project financed transactions is an appropriate allocation of risks.
Private investment in transmission – concessions (part 1)
A concession is a right to develop, construct, operate and maintain an infrastructure project and to earn profits paid from a share of the revenues generated by the project. Explore how concessions over transmission networks are structured.
Private investment in transmission – concessions (part 2)
In this article, we continue to explore how concessions over transmission networks are structured, and examine the alternatives for economic regulation of whole of network concessions – introducing some regulatory considerations that are specific to concessions.
Private investment in transmission – concessions (part 3)
In this article, we focus on several issues that are critical to the bankability of concession transactions. Those issues include how buy-out payments are calculated, some currency-related considerations, and the allocation of risks among the parties to the transaction and consumers.
Recorded Board Room Discussion on Understanding Power Transmission Financing
In this roundtable discussion a group of the authors discusses four business models that can be used to involve the private sector in the development and financing of power transmission facilities.
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