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The proposed projects reinforce each other, contributing to an economic rate of return of 17%.
A World Bank evaluation even calculated an economic rate of return of 12 to 24%.
The Bank sets itself exceptionally high standards that, inter alia, call for projects to deliver at least a 10% economic rate of return.
That means that the economic rate of return is significantly less than the social rate of return.
As for the economic efficiency of the project, the European evaluation calculated an economic rate of return of the hydropower component of 8%.
But there was still you know a substantial It was more or less the same case as we had before in terms of the traffic relief that each afforded and the economic rates of return.
The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments.
It says that about one-third of the projects do not live up to the bank's standards in implementation; but it also says that projects need to meet a minimum 10 percent economic rate of return to be deemed satisfactory.
Large dams financed by the World Bank, such as the infamous dams on the Narmada River in India, have forced millions of poor people from their homes, destroyed wetlands and fisheries, and had economic rates of return below 10 percent.
An inverse way of looking at the issue would be an 'economic energy efficiency,' or economic rate of return on its consumption of energy: how many economic units of GDP are produced by the consumption of units of energy.