Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
Maximizing the benefits from public sector investments requires a clear, predictable, and transparent process informed by robust analyses that can facilitate multicriteria considerations of different options and alternatives. However, the tools ava...
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| Format: | Technical Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/590121549348324473/Batoka-Gorge-Hydroelectric-Scheme-A-Macroeconomic-Assessment-of-Public-Investment-Options http://hdl.handle.net/10986/31302 |
| Summary: | Maximizing the benefits from public
sector investments requires a clear, predictable, and
transparent process informed by robust analyses that can
facilitate multicriteria considerations of different options
and alternatives. However, the tools available to
governments to assess the costs and benefits of different
investment strategies are often too general or specific to
determine the optimal investment strategy. This paper aims
to improve the tools available to facilitate the assessment
of the macroeconomic implications of large infrastructure
projects and enhance the capacity for management of public
investment decisions. The macroeconomic assessment of public
investment options (MAPIO) model was applied to the Batoka
Gorge hydroelectric scheme to provide an analysis of impacts
on key macroeconomic variables. The MAPIO model shows the
project provides a robust financial and economic investment
option with a net positive impact on the national economies
in both Zambia and Zimbabwe. The estimates are considered
conservative and the returns remain robust when subjecting
the model to extreme assumptions to test the sensitivity of
the results. However, it is important to acknowledge the
model limitations, which does not include noneconomic
benefits, costs, or impacts on other sectors. Any investment
decision should involve a multicriteria assessment that
considers the full range of options and alternatives that
may be available to achieving the development objectives. |
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