Private Sector and Power Generation in China

This paper discusses issues and problems related to private sector involvement in China's power sector. The first part, a summary of the conference held in Beijing, in June 1999, stresses that, despite the problems encountered and the impact of the Asian economic and financial crisis, China's power sector remains attractive to investors because of its size, growth potential, and the improving business and regulatory environments. The discussion at the conference expressed the need for...
More Description

This paper discusses issues and problems related to private sector involvement in China's power sector. The first part, a summary of the conference held in Beijing, in June 1999, stresses that, despite the problems encountered and the impact of the Asian economic and financial crisis, China's power sector remains attractive to investors because of its size, growth potential, and the improving business and regulatory environments. The discussion at the conference expressed the need for more transparency in the reforms and regulation, streamlining of the project approval process, and improving credit worthiness of power offtakers. The second part, a paper on private power development in China, outlines the key characteristics and indicates some future developments for the different forms of private sector participation that have emerged and developed since the early 1980s. Finally, it provides a review of some concerns voiced by investors and provides a preliminary assessment of their impacts on future investments.