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Title: The management and design of economic development projects: A case study of World Bank electricity projects in Egypt

Miscellaneous ·
OSTI ID:7170564

This study is concerned with the efficiency of World Bank projects in Egypt. The study seeks improvements in the methods of evaluating public sector projects in Egypt. To approaches are employed: (1) project identification to optimally allocate Egypt's and World Bank's resources; (2) project appraisal to assess the economic viability and efficiency of investments. The electricity sector is compared with the agriculture sector as a means of employing project identification for priority ordering of investment for development in Egypt. The key criteria for evaluation are the impacts of developments of each sector upon Egypt's national objectives and needs. These include employment opportunities, growth, alleviation of poverty, cross comparison of per capita consumption in each sector, economic rate of return, national security, balance of payments and foreign debt. The allocation of scarce investments would have been more efficient in agriculture than in electricity in meeting Egypt's national objectives and needs. World Bank lending programs in Egypt reveal a priority ordering of electricity over agriculture and rural development. World Bank development projects in Egypt have not been optimally identified, and its programs have not followed an efficient allocation of World Bank's and Egypt's resources. The key parameters in evaluating economic viability and efficiency of development projects are: (1) the discount rate (the opportunity cost of public funds); (2) the exchange rate; and (3) the cost of major inputs, as approximated by shadow prices of labor, water, electricity, and transportation for development projects. Alternative approaches to estimating the opportunity cost of public funds are made. The parameters in evaluating the efficiency of projects have not been accurately estimated in the appraisal stage of the World Bank projects in Egypt, resulting in false or misleading information concerning the economic viability and efficiency of the projects.

Research Organization:
Univ. of Southern California, Los Angeles, CA (United States)
OSTI ID:
7170564
Resource Relation:
Other Information: Thesis (Ph.D.)
Country of Publication:
United States
Language:
English