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