A Power Purchase Agreement (PPA) is at the heart of any BOT or BOO type power generation project that is to be undertaken by an Independent Power Producer (IPP). During the past decade privately owned IPPs selling electricity to the power industry has become common place. Such arrangements...

This paper investigates the reaction of interest rates to changes in domestic and foreign monetary policies during periods of fixed and flexible exchange rates. In the empirical sections of this study we analyze the relationship between Canadian interest rates and some of their important...

The estimation of the demand for electricity is important in the appraisal of power projects because it often affects the benefits of the projects. For projects that involve a decision about the timing of investment- when to install new capacity to meet the demand- the precision of the...

While the methodology for the evaluation of electricity generation investments is well developed, little work has been done on how to segregate and compare the costs and benefits of electricity distribution facilities. Distribution projects have been usually treated as a required technical part...

In the past, most evaluations of the electric utility investments have been based on the assumptions that the suppliers of electricity would provide the quantity of energy demanded at an acceptable level of reliability. The question addressed in most of the investment appraisals has been: “is...

The Canadian economy experienced an increasing rate of inflation during the last half of the 1960s.The latter part of this period; interest rates reached levels higher than had been experienced for several decades. This study attempts to explain how the levels of interest rates are determined and...

An electric utility operating to satisfy the instantaneous demand for electricity by its customers has investment and daily operation decisions are dominated by two cost items, capacity cost and fuel cost. This is not surprising for an industry whose business is employing capital to convert raw...

Foreign borrowing as a source of additional savings can be valuable to a nation whose supply of long-term investment funds is scarce, relative to the amount of its productive investment opportunities. Indonesia is an example of such a country. It has abundant investment opportunities, but...

This paper examines the differences between state owned enterprises and their private-sector counterparts in terms of the way they are affected by the tax systems. The relationship between state-owned enterprise finance and the impact of a tax system on these firms is also studied. A number of...