EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
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Figure 8.3: Annual Per Capita Investment Requirement in Sanitation to reach<br />
MDG<br />
$10.00<br />
Annual Per Capita Investment Requirement in Sanitation (US$) for 2000-2015<br />
$9.00<br />
$8.00<br />
$7.00<br />
$6.00<br />
$5.00<br />
$4.00<br />
$3.00<br />
$2.00<br />
$1.00<br />
$0.00<br />
Fiji Kiribati Palau Papua New<br />
Guinea<br />
Samoa<br />
Solomon<br />
Island<br />
Vanuatu Dominica Jamaica St Lucia<br />
Source: Castalia Research<br />
We note that the investment challenge in the water and sanitation sectors in the<br />
<strong>Pacific</strong> is considerably higher than the comparable challenge in the Caribbean.<br />
8.2 Electricity<br />
Investments needed for improving access to electricity include both network<br />
extension and additional generation to accommodate demand from additional<br />
customers. We reference network extension targets to the MDG objective of halving<br />
the number of people without access. We focus on a selected group of <strong>Pacific</strong><br />
countries for which information was available.<br />
We use electricity intensity (kWh of energy delivered per customer) as a basis for<br />
calculating the investment requirement. <strong>The</strong> average electricity intensity for the<br />
group of <strong>Pacific</strong> countries for which data were available is 1.2 MWh, compared to<br />
2MWh per capita in the Caribbean. This would suggest that energy intensity in the<br />
<strong>Pacific</strong> is likely to rise as service levels improve. However, we assume constant<br />
energy intensity as a baseline for calculating the minimum investment requirement.<br />
We use the population projections for 2015, and the MDG service target, to estimate<br />
the required increase in the number of connected customers. Population projections<br />
were obtained from the UN Urbanization Prospects. Using the assumption of<br />
constant electricity intensity, we then compute the required increase in installed<br />
generation capacity.<br />
<strong>The</strong> total investment required to deliver the increase in capacity was calculated on the<br />
basis of US$1,900/ kW cost for generation capacity and the associated network. 22<br />
22 <strong>The</strong> unit cost of $US1,900 per kilowatt of generating capacity, including associated network cost, was obtained<br />
from the <strong>World</strong> <strong>Bank</strong> Policy Research Working Paper 3102, July 2003, “Investing in <strong>Infrastructure</strong>: What is<br />
Needed from 2000 to 2010” from Marianne Fay, and Tito Yepes.<br />
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