Socio-economic development

In the following table are summarized the main social-economic and financial indicators for the Development Road Project:

Table
Infrastructure Economic & Social IRR Financial IRR
Consolidated SPV1 SPV2
Al Faw Port 9.37% 15.8% 13.9% 23.3%
Railway 18.40% 10.08% 9.63% 11.00%
Highway 11.10% 8.44% 8.43% 8.50%

In the above table are shown the IRRs coming from the Financial Analysis and those coming from the Cost-Benefit Analysis (CBA).

The former index are giving the pure financial benefits coming from the investment for possible Private Investors, whilst the IRRs in CBA are also considering the indirect socio-economic impact and benefits for the Country coming from the Investment itself, which may be not so relevant for the Private Investors. Both IRRs values are profitable from an international market perspective. In general, similar investments are considered interesting and viable in case of financial IRR around ≈10%.

In terms of economic impact, the results from the forecast model highlight that the effects produced by the investment are visible in the projected GDP growth (with and without the investment) showing a positive impact on GDP per capita (around 20%) at the end of the period.