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close this book Development in practice - Rural energy and development
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View the document World bank lending for rural and renewable energy projects, fiscal 1980-95
View the document Methodology for estimation of world bank lending to rural and renewable energy projects

Methodology for estimation of world bank lending to rural and renewable energy projects


This research effort was carried out to review the Bank's historical lending patterns in rural and renewable energy. It sheds light on the magnitude of attention and resources directed toward these investments and the ongoing operational trends.

World Bank projects typically involve multiple components and funding sources and occasionally targeted cofinancing. Costing tables and summaries within the Staff Appraisal Report provide one cross-section of the project's economic make-up. However the lines along which they are organized do not usually aggregate the project data in accord with the subject of interest or do not provide the desired resolution to answer questions such as "how much was spent only on renewable energy equipment." or "what fraction of an institution building component focused on efficient stove and charcoal kiln commercialization.' Reverse-engineering and educated estimation were used to characterize the projects appropriately. leaving a modest margin for discrepancies. Below the method of distilling the data required for the Annex is outlined:

• The estimated Bank contribution is the sum of the subject components - that is, those relating to rural electrification. renewable energy, or cooking fuels. inclusive of the traction of contingencies and interest during construction attributable to the selected components on a percentage-of-project basis. multiplied by the fractional share of Bank lending in the total project financing.

• The projects span 1980 to 1995.

• Projects passing the Statf Appraisal Report stage were selected. No attempt was made to gauge the field success of any projects beyond that point of reference.

• The listed projects were identified via the Bank Reports Data Base through fifty keyword searches anti via personal communications with members of IEN's rural energy group. Bank data bases are not oriented precisely alone the lines of the search: thus it is expected that a few projects may have escaped detection.

• If a project. such as a forestry project. appeared to fit the search objectives but contained no local participatory component or energy-related outputs accruing to rural communities. the project was omitted from the analysis. Likewise if the project contained a renewable energy component but provided no direct energy outputs accruing to the national or local community, that also would not fit within the scope of the analysis and would have been excluded.

In projects relating to rural finance operational experience demonstrates that rural finance projects with a fuelwood component usually realize about 15 percent of the available funds. Where no predictions were made about expected allocation of finances among the project components. the 15 percent figure was applied.