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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Main Author:	World Bank
Format:	Technical Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	HYDROPOWER TRANSBOUNDARY COOPERATION RIVER BASIN MANAGEMENT ELECTRICITY MACROECONOMIC ASSESSMENT PUBLIC INVESTMENT MAPIO INTERNAL RATE OF RETURN GENERATION CAPACITY CAPITAL LABOR MARKET SUPPLY RESPONSE ELASTICITY ALLOCATIVE EFFICIENCY MODEL
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

id	okr-10986-31302
recordtype	oai_dc
spelling	okr-10986-313022021-05-25T09:21:45Z Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options World Bank HYDROPOWER TRANSBOUNDARY COOPERATION RIVER BASIN MANAGEMENT ELECTRICITY MACROECONOMIC ASSESSMENT PUBLIC INVESTMENT MAPIO INTERNAL RATE OF RETURN GENERATION CAPACITY CAPITAL LABOR MARKET SUPPLY RESPONSE ELASTICITY ALLOCATIVE EFFICIENCY MODEL 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. 2019-02-15T21:29:16Z 2019-02-15T21:29:16Z 2019-01 Technical Paper http://documents.worldbank.org/curated/en/590121549348324473/Batoka-Gorge-Hydroelectric-Scheme-A-Macroeconomic-Assessment-of-Public-Investment-Options http://hdl.handle.net/10986/31302 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Zambia Zimbabwe
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	HYDROPOWER TRANSBOUNDARY COOPERATION RIVER BASIN MANAGEMENT ELECTRICITY MACROECONOMIC ASSESSMENT PUBLIC INVESTMENT MAPIO INTERNAL RATE OF RETURN GENERATION CAPACITY CAPITAL LABOR MARKET SUPPLY RESPONSE ELASTICITY ALLOCATIVE EFFICIENCY MODEL
spellingShingle	HYDROPOWER TRANSBOUNDARY COOPERATION RIVER BASIN MANAGEMENT ELECTRICITY MACROECONOMIC ASSESSMENT PUBLIC INVESTMENT MAPIO INTERNAL RATE OF RETURN GENERATION CAPACITY CAPITAL LABOR MARKET SUPPLY RESPONSE ELASTICITY ALLOCATIVE EFFICIENCY MODEL World Bank Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
geographic_facet	Africa Zambia Zimbabwe
description	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.
format	Technical Paper
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
title_short	Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
title_full	Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
title_fullStr	Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
title_full_unstemmed	Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options
title_sort	batoka gorge hydroelectric scheme : a macroeconomic assessment of public investment options
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/590121549348324473/Batoka-Gorge-Hydroelectric-Scheme-A-Macroeconomic-Assessment-of-Public-Investment-Options http://hdl.handle.net/10986/31302
_version_	1764474015461670912

Batoka Gorge Hydroelectric Scheme : A Macroeconomic Assessment of Public Investment Options

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