The Australian economy has been adversely affected by the hesitation in developing countries to commit to the construction of .new coal-fired power stations. World coal trade which was expected to grow at an appreciable rate has stagnated, world export coal prices have plummetted, and facilities in place in Australia for the production and export of coal are being underutilized. While in some countries this hesitation has been caused by a reduction in electricity load growth, another cause has been the unduly long lead-time imposed on developing countries by the conventional "Banker's Approach" to the planning and initiation of commitments to finance and construct coal-fired power plants. In some countries electricity growth has been met by increased usage of indigenous energy resources, even though this involves costs in excess of imported coal-fired power generation._x000D_
The avoidance of foreign exchange commitments in these cases can however be desirable. In many other developing countries however, fuel oil continues to be used for power generation at a cost in foreign exchange of up to 50% above the total cost of coal fuel plus capital to construct a new coal-fired power station. The conventional "Bankers Approach" to new power station planning imposes the need for successive feasibility studies to satisfy the normal processes of international development lending agencies. No feasibility study can however, show how keen vendor countries may be to win major power plant contracts; and no feasibility study can determine whether the power station eventually procured will be one of the more reliable, at better than 80% availability, or one of the more unreliable at worse than 60% Availability.