This chapter focuses on independent power producer (IPP) projects, by far the most successful kind of public–private partnership (PPP) in the developing world. These projects generate more investment in developing countries than all other forms of PPP combined. However, the development community exhibits ambivalence towards independent power producer (IPP) projects. They are supposed to work best in power sectors that are being reformed, where user tariffs are cost reflective and off-taker utilities are creditworthy. Yet, in practice, many influential multilateral development banks (MDBs), development finance institutions (DFIs), and donors are encouraging the use of IPP projects virtually everywhere in the developing world, whether or not sector reforms are taking place. This reflects a policy dilemma: most low-income countries desperately need more generating capacity, but should the development of IPP projects be delayed until progress is made on broader sector reforms? How can these policy dilemmas be resolved? Who can make that happen?