This publication draws on the Private Sector Participation (PSP) experience of four emerging economies—Brazil, Peru, the Philippines, and Turkey—based on in-depth case studies by Energy Sector Management Assistance Program (ESMAP). For Transmission, the experience of the countries reviewed suggests that PSP in transmission has been used primarily as a means to mobilize capital for massive new investments. Improved performance of the transmission business, and the power sector as a whole, has been another important goal. An additional goal has been to raise privatization proceeds for the government.
In Distribution, where grid expansion was the main driver, PSP programs in distribution have mostly focused on the networks already in place with a view to improve operational and financial performance. This subsector suffered from high levels of network losses, low productivity, inadequate maintenance, substandard quality of service, and insufficient revenue.