Hydro-power plants have a significant role in the
economic-social development of the developing countries;
on the other hand, in most cases, the local sources of these
countries are not able to provide construction and
development costs of these projects; therefore, in recent
decades, these countries have focused on providing
financial sources via absorbing foreign and local capitals
and, ultimately, towards privatization of power plants.
One of the most ideal methods to execute hydro-power
plant is to encourage private sector, particularly foreign
investors, in order to participate in the projects by buildoperate
transfer (BOT) method. One of the main goals of
this method is to lower the role of government in the
execution and implementation of infrastructure projects in
which the financial risks are divided among different
sectors through a strong organization and, at the same
time, the national interests of host country (client) are
protected as well.
As the investment and financial need of development of
electrical power plants and electrical networks are too high
and they could not be satisfied by the traditional methods
and domestic resources as well, the other methods should
be applied by depending on their incomes and creation of
more financial resources, through creation of domestic
financial sources in order to rely on the incomes by
establishing fair competitions among private sectors, and
consequently, lowering the costs of electrical industrial
development.