Infrastructure Concessions, Information Flows, and Regulatory Risk
Regulators of concessions in newly privatized infrastructure sectors typically start the price control process with limited sectoral and corporate data. To move toward more realistic regulatory targets, they must ensure that this information base g...
| Main Authors: | , |
|---|---|
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1999/12/729341/infrastructure-concessions-information-flows-regulatory-risk http://hdl.handle.net/10986/11446 |
| Summary: | Regulators of concessions in newly
privatized infrastructure sectors typically start the price
control process with limited sectoral and corporate data. To
move toward more realistic regulatory targets, they must
ensure that this information base grows and that their
ability to process it improves-a costly undertaking but
worth the expense. Getting it right-with well-conceived
rules, data, and methodologies-helps to avoid time-consuming
regulatory disputes and contract renegotiations, reduce
regulatory capture by the new private operator, and assess
who gains and who loses from utility privatization. Getting
it wrong can cause the concessionaire to operate and invest
inefficiently, raise its cost of capital, and ultimately
jeopardize privatization. This Note outlines the accounting
requirements that a regulator should impose on new
concessionaires to navigate these waters as smoothly as possible. |
|---|