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ECN publication
Rural electrification in Swaziland: phase 2: cost-benefit analysis
Published by: Publication date:
ECN Policy Studies 1997
ECN report number: Document type:
ECN-C--97-041 ECN publication
Number of pages: Full text:
47 Download PDF  

The main objective of the project on the title subject is to identify andrank the potential new rural electrification projects according to a set of financial, socio-economic and environmental criteria. The study should assist the Swaziland Ministry of Natural Resources and Energy (MNRE) and the Swaziland Electricity board (SEB) in formulating a sustainable ten-years programme for rural electrification. The goals of the government of Swaziland with rural electrification are facilitating the economic development of rural areas, improving living conditions of the rural communities, slowing down the fuelwood consumption and reducing migration of rural population to urban areas. Phase 2 is the analysis of the costs and benefits of rural electrification in Swaziland. This phase is based on the results of phase 1, in which the geographic information system is studied and a financial analysis is carried out. Three main issues are investigated in phase 2. The first issue concerns the analysis of the socio-economic consequences of electrification: the impact, positive or negative, is assessed. The second issue concerns a cost and benefit analysis that provides insight in the economic consequences of electrification from three perspectives: the utility, the individual consumer and the society. The projects that are identified on a financial index in Phase 1 will be ranked according to their net benefit-investment ratio. The third issue refers to the specific methods of cost recovery. Considering the socio-economic consequences, rural electrification can have a positive impact on the quality of life and economic activities of the rural population. Rural electrification has positive economic consequences on a third of the projects identified in Phase 1. Several methods of cost recovery are designed concerning the different social and economic groups. 3 figs., 10 tabs., 15 refs.

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