Projects of Sector planning Sector

Cost-Benefit Analysis for Millennium Challenge Corporation

Organization: DHInfrastructure


The Millennium Challenge Corporation (MCC) wanted to hire a Cost-Benefit Analysis (CBA) Economist Consultant to support MCC's economic research, strengthen applied CBA models, and prepare and review CBA modeling for country compacts under preparation by MCC. The consultant would be hired for a number of tasks over a five-year performance period. In October 2020, MCC wanted a consultant to review their Power Sector CBA Design Principles (Power SCDP) guidance document in advance of its publication and provide written recommendations for adjusting its methodology based on a review of the relevant literature and MCC's CBA guidance and practices. In December 2020, MCC wanted a consultant to review documents and cost-benefit models to improve the quality of deliverables, economic analysis, and project design for MCC's Kosovo Compact Development.

Service Provided

In October and November of 2020, DHInfrastructure reviewed the Power SCDP guidance document and MCC's General Guidelines for Economic and Beneficiary Analysis. We provided recommendations for updating the guidance document. From January to July 2021, DHInfrastructure reviewed documents and data for the Kosovo Compact, including feasibility studies and monitoring and evaluation documents. We reviewed deliverables prepared by consultants implementing projects under the Kosovo Compact, including economic analysis, integrated resource planning, and public-private partnership deliverables. We provided third-party consultation during peer review of CBA models. Finally, we provided direct contribution to CBA benefit estimates, modifications to program logic, assessments of incentive compatibility of relevant actors, and fiscal sustainability.