Financing Rural Energy Projects in China: Lessons for Nigeria

International Journal of Financial Research Vol. 3, No. 4; 2012

12 Pages Posted: 20 Jun 2015

See all articles by Sanusi Ohiare

Sanusi Ohiare

University of Dundee

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

Date Written: December 20, 2012

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.

Keywords: Financing, Cash flow, China, Developing countries, Energy, Hydroelectric, Inflation, Nigeria

Suggested Citation

Ohiare, Sanusi and Soile, Ismail, Financing Rural Energy Projects in China: Lessons for Nigeria (December 20, 2012). International Journal of Financial Research Vol. 3, No. 4; 2012. Available at SSRN: https://ssrn.com/abstract=2620997

Sanusi Ohiare

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

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