PT  - JOURNAL ARTICLE
AU  - Steven T. Kargman
TI  - Restructuring Troubled Power Projects in the Emerging Markets
AID  - 10.3905/jsf.2002.320276
DP  - 2002 Jul 31
TA  - The Journal of Structured Finance
PG  - 19--25
VI  - 8
IP  - 2
4099  - https://pm-research.com/content/8/2/19.short
4100  - https://pm-research.com/content/8/2/19.full
AB  - In light of the volatile global economic environment in recent years, particularly in the emerging markets, it is not surprising that during this period a number of independent power producers (IPPs) in these markets have experienced serious challenges to their fundamental economic and commercial viability. While restructuring negotiations between the IPPs and government parties easily can get bogged down in political issues, the commercial focus of the negotiations can be restored when the host government has an urgent need for the power generated by the IPPs. In such a situation of rapidly rising electricity demand, it is conceivable that the foreign-owned IPPs may be in a position to offer a more effective response than the government-owned utility and its power plants. In the final analysis, the IPPs may need the pressure of such fundamental economic forces, including the increasing demand for electricity, to help bring the PPA renegotiation process to closure.