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Financing Rural Energy Projects in China: Lessons for Nigeria

Author

Listed:
  • Sanusi Mohammed Ohiare
  • Ismail O. Soile

Abstract

In this paper, we conduct a financial analysis of a typically viable and unviable World Bank supported hydroelectric projects in China and draw inferences for Nigeria by conducting similar analysis with a classic Nigerian economic and financial environments. The analysis of the hypothetical cash-flow shows that while a similar project is feasible and viable in Nigeria, there is need for a price regime that can adjust annual price increase to offset the impact of inflation as the project appears very sensitive to inflation rates. Several other pros and cons of the Chinese projects were highlighted as lessons other developing countries like Nigeria.

Suggested Citation

  • Sanusi Mohammed Ohiare & Ismail O. Soile, 2012. "Financing Rural Energy Projects in China: Lessons for Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 3(4), pages 7-18, October.
  • Handle: RePEc:jfr:ijfr11:v:3:y:2012:i:4:p:7-18
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    References listed on IDEAS

    as
    1. Xu, Shaofeng & Chen, Wenying, 2006. "The reform of electricity power sector in the PR of China," Energy Policy, Elsevier, vol. 34(16), pages 2455-2465, November.
    2. Haanyika, Charles Moonga, 2006. "Rural electrification policy and institutional linkages," Energy Policy, Elsevier, vol. 34(17), pages 2977-2993, November.
    3. Bielecki, J., 2002. "Energy security: is the wolf at the door?," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 235-250.
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