For developing countries, a stable and secure supply of electricity is crucial for development, and for their populations' well-being. Since the early 1990s, the main mechanism for constructing power generation facilities in developing countries has been the independent power project (IPP) model, where a foreign investor enters into long-term investment contracts with the national utility.
This model has succeeded in attracting investment, but raises complex regulatory and contractual challenges in addition to public concerns.
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