Financing of Energy Sector in Developing Countries

At the 16th WEC Congress in Tokyo (1995) concern were expressed on the adequacy and availability of the capital resources required to finance the growing needs of the global energy sector. WEC stated that most of the pressing issues in many developing countries are found in domestic markets for energy services. International capital flows support domestic efforts to raise resources, but they are seldome a substitute. The need to develop domestic capital markets is as urgent as to develop the energy sector.
Many of the energy issues, especially problems in South Asia, which inevitably are reflected in demand side issues, follow from lack of infrastructure. The build up of the necessary infrastructure requires investment, which in turn means financing and adequate rewards going to investors. This can only be achieved by a combination of mobilising domestic savings, supported by local institutions; and attracting inward supportive investment on acceptable terms.
Subsequently, World Energy Council developed a Report on Financing of Energy Sector and presented at the Executive Assembly of the World Energy Council at Bangkok in 1997. Various issues relating to financing in developing countries is focused in this Report. Realising its relevance to the countries in South Asia, it was decided to organise an International Conference on Financing of Energy Sector in Developing Countries during July 15-16, 1998, in New Delhi, under the auspices of the Indian Member Committee of the World Energy Council.
The book is a compilation of Inaugural Addresses, Overview Addresses, Keynote Addresses and various important presentations and made in the Conference. The Conclusions & Recommendations developed at the Conference are presented as New Delhi Declaration.
The book presents the constraints in financing of the energy sector and the policy measures required to overcome the same.