Valuation issues in lesser developed countries: Investment opportunities
Privatization has become the buzzword of the early 1990s, as all over the world governments are selling off their assets. Monopolistic utilities such as gas, water and waste disposal - but particularly electric - are prime assets for sale because their cash flows and competitive environment are reasonably predictable. Utility privatization in lesser developed countries (LDC) is giving rise to many new investment opportunities where predictions of high growth rates lead to anticipation of lucrative returns. Potential investors, however, should fully exercise the concept of caveat emptor: let the buyer beware. Coupled with these lucrative returns are risks arising from less stable political and economic conditions. possible market inefficiencies, and potentially high transaction costs. This article explores the central issues involved in valuing privatization investment opportunities in LDCs and performing requisite due diligence reviews.
- OSTI ID:
- 7168474
- Journal Information:
- Electricity Journal; (United States), Journal Name: Electricity Journal; (United States) Vol. 5:8; ISSN ELEJE4; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290201* -- Energy Planning & Policy-- Economics-- (1992-)
296000 -- Energy Planning & Policy-- Electric Power
AVAILABILITY
COMPETITION
DEVELOPING COUNTRIES
ECONOMIC POLICY
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
FINANCING
GOVERNMENT POLICIES
INDUSTRY
INVESTMENT
MARKET
OWNERSHIP
PLANNING
POWER SYSTEMS
PUBLIC UTILITIES
RELIABILITY