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Assessing options - the first step
Options assessment is about making choices. In providing electricity, this includes the choice of generation technology (thermal, hydropower, wind etc.), the extent that improvements in existing systems can satisfy demand, the merits of centralized grid systems or off-grid solutions, and the potential for savings through demand side management (e.g. conservation and efficiency improvements). Similar choices are faced in planning for irrigated agriculture, water supply and flood management. A recent workshop on options assessment defined three inter-related levels or entry points. 'An options assessment is part of a decision-making process that works towards identifying the most appropriate options to satisfy defined needs. These processes are conducted at:
Investing more time up front in deciding on policy initiatives, determining investment strategies and selecting appropriate project interventions can yield significant benefits in reducing social and environmental costs later in the project cycle. Assessing options rarely starts with a blank sheet of paper. It is a cyclical and iterative process and very context specific -- influenced by the prevailing policy and regulatory framework, the natural and social resource base, the level of development, the political and administrative system, and the relationship between public and private sectors. ADB's business processes reflect the importance of taking steps to 'ensure better identification and conceptualization of projects at the initial stage of the cycle'. See Business processes for the re-organized ADB, 2002, para 6(ii) . The following links provide a description of options assessment at the three levels of policy; strategic and sector planning; and feasibility and project studies together with case study examples:
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