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The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation

The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is an initiative that aims to strengthen Tanzania’s agriculture sector.

IISD has carried out an economic and financial assessment of different irrigation options to deliver the outcomes of the SAGCOT initiative. IISD used the Sustainable Asset Valuation (SAVi) tool for this assessment.

SAVi is a simulation service that helps governments and investors value the many risks and externalities that affect the performance of infrastructure projects.

The distinctive features of SAVi are:

  • Valuation: SAVi values, in financial terms, the material environmental, social and economic risks and externalities of infrastructure projects. These variables are ignored in traditional financial analyses.
  • Simulation: SAVi combines the results of systems thinking and system dynamics simulation with project finance modelling. We engage with asset owners to identify the risks material to their infrastructure projects and then design appropriate simulation scenarios.
  • Customization: SAVi is customized to individual infrastructure projects.