Water Papers

183 items available

Permanent URI for this collection

Water Papers are produced by the Water Global Practice, taking up the work of the predecessor Water Unit, Transport, Water and ICT Department, Sustainable Development Vice Presidency.

Items in this collection

Now showing 1 - 2 of 2
  • Thumbnail Image
    Batoka Gorge Hydroelectric Scheme: A Macroeconomic Assessment of Public Investment Options
    (World Bank, Washington, DC, 2019-01) World Bank
    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.
  • Thumbnail Image
    Economic Rationale for Cooperation on International Waters in Africa: A Review
    (World Bank, Washington, DC, 2017-02-15) Namara, Regassa Ensermu ; Giordano, Mark
    Transboundary river basins cover 62 percent of Africa's total area and, with the exception of island states, every African country has at least one international river in its territory. Thus, transboundary water governance in Africa is central to any national or regional water strategy and any economic, poverty reduction, and environmental strategy. Despite the potential payoff from water cooperation, forging meaningful agreements for shared water management faces numerous challenges. Impediments to negotiated cooperation include differences in up- and downstream views on water rights and histories of water use; negotiating philosophies focused on the belief that water is a zero-sum game; geographic and political power differentials that conflict with basin-wide solutions; and uncertainty over basic water resources data that increase the perceived risks of cooperation. For cooperation to occur, riparian states, other stakeholders, and the facilitators of negotiation must be aware of the possible benefits of cooperation, whether benefit distribution will be shared, and what pathways are most likely to overcome potential barriers to negotiation. Economic theory and empirical analysis can play a productive role in providing the necessary information. This paper provides a review of the challenges to transboundary water cooperation, pathways for overcoming those challenges, and the role of economics in facilitating the discovery of those pathways. While it is written to focus on African transboundary waters, the report draws from broader transboundary water literature. Appendices include case studies on both game theory and hydro-economic analysis in transboundary cooperation for several river basins, including some from Africa. The limited studies that have quantified the gains from cooperation or costs of noncooperation show that the potential benefits are substantial. Recognizing the potential gains and costs for all parties provides a motivation for cooperation. The likelihood of cooperation around river basins is minimal if cooperation does not benefit the respective actors involved. In the final analysis, cooperation should be voluntary based on the self-interest of riparian states.