Sector Report. "The main objectives of the study are to: a) assess options and formulate a strategy for power trade among the Greater Mekong countries, paying special attention to the barriers to trade and the policy, institutional and commercial framework required to develop and operate efficiently a regional power network; and b) establish the rationale and options for donors ' support to power trading and transmission network investment needs within the region. Although power trade among the Greater Mekong Sub-region (GMS) countries is beginning to grow, there are important barriers that could prevent its development: 1) policy barriers, 2) technical barriers, 3) institutional barriers, and 4) commercial and financial barriers. The strategy proposed in the study addresses the following overarching issues: 1) Regional electricity trade should be second to national and local needs. 2) Conditions must be established for a public-private partnership to develop power trade in the region. 3) Conflicts must be resolved between short- and long-term objectives, between national and regional views, and eventually, between specific projects. 4) There must be a common path of fundamental economic practices to allow open access to transmission. 5) Financial and technical assistance must be secured. 6) There must be a regional agreement on policy issues and an institutional framework to address market uncertainties and potential conflicts, and to promote regional trade. Keywords: Electricity trade; Regional trade; Electric networks; Transmission; Mekong river; Trade barriers; Private-public partnerships; Technical assistance; Institutional framework; Trade policy; Greenhouse gas emissions; Sectoral reforms; Government policy; Power sector reform; Wholesale trade; Open access; Tariffs; Risks; Taxes; Royalties; Financial instruments; Thermal power; Watershed management