World Bank's Role in the Electric Power Sector · Policies for Effective Institutional, Regulatory, and Financial Reform

This policy paper is based on the World Bank Industry and Energy Department's ongoing policy and research work, which: (a) examines experiences of industrial countries and the Bank's borrowers in developing their power sector; (b) analyzes issues facing these sectors; and (c) describes options for dealing with these issues in developing countries. The paper is supported by a large body of research, including the Bank's recent work on goverance and public-sector management, the Latin American and Caribbean Department's regional review of the power sector, the Operation Evaluation Department's review of power lending in Colombia, the Asia region's study of private investment in power and coal, the Africa region's analysis of sub-Saharan power sector successes and failures, and the World Bank companion policy paper, Energy Efficiency and Conservation in the Developing World: The World Bank's Role. This paper has also benefited from extensive outside consultations with developing- and developed-country government officials, utility managers, academics, researchers, and nongovernmental organizations. This paper focuses on the interrelated institutional, regulatory, and financial reform issues that are essential in improving power sector performance. This paper does not specifically address issues of technology and fuel choice.