ENERGY PROJECT EVALUATION AND PLANNING

Publisher Summary The chapter discusses the energy project evaluation and planning. To place energy project decisions and economic cost-benefit analysis in its proper perspective, the systematic approach used by the World Bank is summarized in a typical project cycle that includes: identification, preparation, appraisal, negotiations and financing, implementation and supervision, and evaluation. Project identification involves preliminary selection of potential projects that appear to be feasible and conform to national and sectoral development goals. In the preparation phase, the borrower studies the engineering, technical, environmental, institutional, economic, and financial aspects of a proposed project. At this stage, the bank may provide staff guidance and financial assistance or help borrowers obtain other assistance to carry out the studies. Supervision of the implementation process is carried out by the bank through periodic field visits and progress reports from the borrower. Evaluation is the final stage of the project cycle, following disbursement of the loan. Project performance audits are carried out by an independent bank department involving review of previous project documents and field visits, where appropriate.