Maximizing the benefits from publicsector investments requires a clear, predictable, andtransparent process informed by robust analyses that canfacilitate multicriteria considerations of different optionsand alternatives. However, the tools available togovernments to assess the costs and benefits of differentinvestment strategies are often too general or specific todetermine the optimal investment strategy. This paper aimsto improve the tools available to facilitate the assessmentof the macroeconomic implications of large infrastructureprojects and enhance the capacity for management of publicinvestment decisions. The macroeconomic assessment of publicinvestment options (MAPIO) model was applied to the BatokaGorge hydroelectric scheme to provide an analysis of impactson key macroeconomic variables. The MAPIO model shows theproject provides a robust financial and economic investmentoption with a net positive impact on the national economiesin both Zambia and Zimbabwe. The estimates are consideredconservative and the returns remain robust when subjectingthe model to extreme assumptions to test the sensitivity ofthe results. However, it is important to acknowledge themodel limitations, which does not include noneconomicbenefits, costs, or impacts on other sectors. Any investmentdecision should involve a multicriteria assessment thatconsiders the full range of options and alternatives thatmay be available to achieving the development objectives.
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