Freeman Spogli Institute for International Studies Program on Energy and Sustainable Development Stanford University


Independent Power Producers in Thailand

Working Paper

Pei Yee Woo

Issued by
Program on Energy and Sustainable Development Working Paper #51, August 2005

In analyzing how IPPs fared through the Asian Financial Crisis, we will make comparative references contrasting the experience of IPPs in Thailand with those in Malaysia since both economies were severely affected by the 1997 Asian Financial Crisis and the variation in the investment experience in each economy will allow us to isolate macroeconomic shock as an explanatory variable while controlling for a number of other country factors. Almost all Thai and Malaysian IPP projects encountered problems following the 1997 crisis, yet a closer examination of the outcomes suggests that investors in Thailand have emerged significantly better off than their counterparts in Malaysia. A major focus of this particular section of the paper is to analyze the impact of the 1997 crisis on the IPPs of Thailand and Malaysia, how their government-related offtakers (EGAT and Tenaga, respectively) and their IPPs dealt with the situation, and how the varying political systems and regulatory frameworks of these two countries could have contributed to differences in the project outcomes.