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Sanitation services: financing what?
Catarina Fonseca – WASHCost Director
Financing Sanitation, AfricaSan, 20th July 20112
Applying the life cycle cost approach in Burkina Faso, Mozambique and Ghana
Financing Sanitation, AfricaSan, 20th July 20114
“We need more money”!
Financing Sanitation, AfricaSan, 20th July 20115
“Probably we do, but we can be more cost effective”
Financing Sanitation, AfricaSan, 20th July 201110
• What have we learned from the last years in
financing sanitation services?
• What needs financing?
Financing Sanitation, AfricaSan, 20th July 201113
If we only consider capital expenditure in planning and budgeting, we ignore half the costs => lower impact of investments
Financing Sanitation, AfricaSan, 20th July 201114
If we only consider capital expenditure in planning and budgeting, we ignore half the costs => lower impact of investments
Financing Sanitation, AfricaSan, 20th July 201115
Sanitation expenditure is almost completely covered by households (except for hygiene awareness campaigns)
No difference in expenditure by households that received a subsidy for sanitation hardware and those who did not
Financing Sanitation, AfricaSan, 20th July 201116
Comparing costs of what?
Financing Sanitation, AfricaSan, 20th July 201117
Comparing costs of technologies is looking at financing from a limited angle
Service levels
Accessibility UseReliability
(O&M)
Environmental protection
(pollution and density)
Improved service
Each family dwelling has one or more toilets in the compound
Facilities used by all members of HH
Regular or routine O&M (inc. pit emptying) requiring minimal user effort
Non problematic environmental impact disposal and re-use of safe-by products
Basic service
Latrine with impermeable slab (hh or shared) at national norm distance from hh
Facilities used by some members of HH
Unreliable O&M (inc. pit emptying) and requiring high user effort
Non problematic environmental impact and safe disposal
Limited “service”
Platform without (impermeable) slab separated faeces from users
No or insufficient use
No O&M (pit emptying) taking place and any extremely dirty toilet
Significant environmental pollution, increasing with increased population density
No service No separation between user and faeces, e.g. open defecation
Source: Revised from Potter et al., 2010
Costing sanitation service levels
Sophisticated sanitation technologies do not necessarily result in higher sanitation service levels
Financing Sanitation, AfricaSan, 20th July 201120
Low level of services have a cost
Median exp pcpy: $1.9Interquartile Range: $1 - $7.6
Median exp pcpy: $1.1Interquartile Range: $0.6- $2.2
Service levels
Accessibility UseReliability
(O&M)
Environmental protection
(pollution and density)
Improved service
Each family dwelling has one or more toilets in the compound
Facilities used by all members of HH
Regular or routine O&M (inc. pit emptying) requiring minimal user effort
Non problematic environmental impact disposal and re-use of safe-by products
Basic service
Latrine with impermeable slab (hh or shared) at national norm distance from hh
Facilities used by some members of HH
Unreliable O&M (inc. pit emptying) and requiring high user effort
Non problematic environmental impact and safe disposal
Limited “service”
Platform without (impermeable) slab separated faeces from users
No or insufficient use
No O&M (pit emptying) taking place and any extremely dirty toilet
Significant environmental pollution, increasing with increased population density
No service No separation between user and faeces, e.g. open defecation
Source: Revised from Potter et al., 2010
Sanitation service levels: reliability and use are important indicators of actual services received
Financing Sanitation, AfricaSan, 20th July 201122
50% VIP, 50% TPLMedian Cost: $3.2 per capita yearInterquatile range: $2.9- $7.9 per capita/year
All Vip LatrinesMedian Cost: $4 per capita yearInterquatile range: $2 - $9.6 per capita/year
Service level analysis provides a more nuanced understanding for each type of intervention of where underlying problems of coverage and slippage may lie
Financing Sanitation, AfricaSan, 20th July 201123
Final messages
1. Life cycle cost approach enables comparison of
different service delivery models internalising
lifespans and number of users in cost
comparisons
2. A firm grasp of costs and services to be
delivered, leads to more robust financing
strategies
Financing Sanitation, AfricaSan, 20th July 201124
Want more details?
www.washcost.info
Training session on introduction to LCCA
Friday 09:00 – 12:30
+ lunch!
