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Lesson Learned

Ensure the estimated economic rate of return (ERR) is not double-counting benefits: MCC has improved its approach to ERR calculation since the Tanzania compact, where ERRs included both the consumer surplus resulting from reduced transportation costs and additional benefits from improved human capital and agricultural production.

Ensure the estimated economic rate of return (ERR) is not double-counting benefits: MCC has improved its approach to ERR calculation since the Tanzania compact, where ERRs included both the consumer surplus resulting from reduced transportation costs and additional benefits from improved human capital and agricultural production. As the evaluator pointed out, these two additional benefits are already accounted for in the consumer surplus approach.