The Asian Development Bank (ADB) is one of the first multilateral development banks (MDBs) to move from endorsing transparency principles to actively supporting power contract disclosure in practice. As a part of our latest interview series blog on why MDBs should require power purchase agreement (PPA) disclosure, the power contract transparency team recently spoke with Scott Morris, Vice President at ADB, about why governance — not funding — remains the biggest barrier to energy investment and how targeted transparency reforms can deliver results.
“I keep coming back to governance,” said Morris. “These are attractive markets. But where investment is falling short, it’s too often because of regulatory gaps, weak institutions, and lack of legal certainty.”
Across much of Asia, demand for power is strong and investor interest is high. But underlying structural issues continue to slow progress. State-owned utilities often dominate the sector, regulatory systems face capacity constraints, and ministries of finance frequently lack visibility into long-term obligations created through energy contracts. While MDBs can provide financing or guarantees, Morris emphasized that these tools cannot substitute for strong governance. “You want to address the underlying issues that cause investors to pause,” he said.
ADB has traditionally supported broad, sector-wide reforms through policy-based lending and technical assistance. These programs aim to improve regulation, strengthen institutions, and create more competitive markets. But implementation is often slow and politically difficult. “You can identify a hundred reforms,” Morris noted, “but it’s a particular challenge to find the reform that is easily verifiable, politically achievable, and ultimately has real impact.”
This has led ADB to focus on more targeted interventions, including PPA transparency. “These are achievable commitments,” Morris said. “You either disclose contracts or you don’t. It’s not trying to fix everything at once, but it can have powerful effects.”
ADB’s new technical assistance program on governance and PPA transparency in the Kyrgyz Republic, Lao PDR, and Tajikistan reflects this shift. These countries face a combination of rising debt risks and strong potential for energy investment, particularly in renewables. In Lao PDR, for example, limited coordination between state-owned enterprises and the finance ministry has contributed to hidden liabilities. “There’s too little visibility into what’s happening through SOEs and joint ventures,” Morris explained. “That’s what leads to these underlying debt issues.”
At the same time, these countries are well positioned to benefit from growing regional demand for electricity, including plans for greater cross-border power trade in Southeast Asia. But without stronger governance, these opportunities may not translate into investment. “If countries can address these issues,” Morris said, “this can be a real driver of economic growth.”
Morris also highlighted the strong connection between energy contract transparency and sovereign debt transparency. Hidden liabilities from long-term PPAs can create fiscal risks similar to undisclosed public debt. While the debt world tends to focus more on avoiding crises, the transparency world aims to improve the status quo. “It’s not just about preventing bad outcomes,” he said. “It’s about building more robust markets.” By making contracts visible, governments can better assess fiscal exposure while also creating a more predictable environment for private developers.
Ensuring that these reforms last beyond initial programs requires sustained engagement. Morris emphasized the importance of identifying reform champions within government and supporting them over time. “You need people who are committed,” he said. “And then you invest in them and give them the resources they need.” ADB’s technical assistance model allows it to provide flexible, ongoing support, including embedding experts and responding directly to government needs.
Reflecting on his experience in government, think tanks, and now an MDB, Morris also stressed that influencing policy requires more than strong analysis. “You can’t treat the (policy) paper as the end goal,” he said. Effective engagement requires understanding how policymakers operate, maintaining long-term relationships, and repeatedly communicating key ideas. “A lot of it is education,” he added. “You have to stay engaged.”
ADB’s approach provides an early example of how MDBs can move from principle to practice on contract transparency. By supporting disclosure through context-specific technical assistance and integrating it into broader governance reforms, MDBs can help governments reduce hidden risks, strengthen institutions, and attract more investment.
As MDBs look to scale up energy investment in emerging markets, ADB’s experience shows that targeted, practical reforms like PPA disclosure can be an effective place to start.
