IDEAS home Printed from
   My bibliography  Save this paper

Cost Efficiency and Effectiveness of the Sitio and Household Electrification Programs


  • Navarro, Adoracion M.


The Sitio Electrification Program (SEP) and the Household Electrification Program (HEP) are two ongoing rural electrification programs of the government. To assist the Department of Budget and Management in implementing its zero-based budgeting approach, we assessed the 2011 SEP and HEP implementation. Using benchmarking for the efficiency and effectiveness assessment of program implementation, we find that the programs were able to achieve their 2011 targets and at reasonable costs. Using an econometric regression for studying the poverty reduction impacts of rural electrification in the Philippines, we also find evidence of a positive relationship between rural electrification and poverty reduction. However, in order to meet the national electrification targets, the SEP and HEP implementation designs need to be improved. The SEP targeting system can be improved by using households as the ultimate basis for setting targets and then using the sitios as location identifiers for the household connections being targeted. Monitoring SEP and HEP accomplishments can be improved by including household dwelling units connected and households served in field reports. The social preparation component can also be strengthened by specifically identifying what constrains the households from connecting despite the presence of subsidies and then addressing the constraints in the program design. Prioritization can also be improved by giving importance to the presence of local enterprises that can raise economic activities and employment when prioritizing areas to be assisted. The Expanded Rural Electrification Team should also be re-activated, but it should have a streamlined setup and the responsibilities of members should be assigned to positions in offices rather than to specific officials (so that the performance of duties can be sustained even after the officials have left). Lastly, given that the 2012 experience in the accelerated implementation of the SEP raises red flags on the absorptive capacity of the National Electric Administration and the electric cooperatives, decisionmakers may have to downscale the annual targets to more realistic levels and extend the implementation period to a more realistic duration.

Suggested Citation

  • Navarro, Adoracion M., 2013. "Cost Efficiency and Effectiveness of the Sitio and Household Electrification Programs," Discussion Papers DP 2013-32, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2013-32

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Bensch, Gunther & Kluve, Jochen & Peters, Jörg, 2010. "Rural Electrification in Rwanda – An Impact Assessment Using Matching Techniques," Ruhr Economic Papers 231, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Silva, Diego & Nakata, Toshihiko, 2009. "Multi-objective assessment of rural electrification in remote areas with poverty considerations," Energy Policy, Elsevier, vol. 37(8), pages 3096-3108, August.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Navarro, Adoracion M. & Sambodo, Maxensius Tri & Todoc, Jessie L., 2013. "Energy Market Integration and Energy Poverty in ASEAN," Discussion Papers DP 2013-50, Philippine Institute for Development Studies.

    More about this item


    poverty reduction; Philippines; zero-based budgeting; highest benefit approach; household electrification; least cost approach; rural electrification; sitio electrification;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2013-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.