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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 />

62

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