Budgeting Tool: Budgeting sustainable water and sanitation services

Objectives:

The objective of this section is to assist development partners in budgeting their programme in order to ensure that  water and sanitation services are supplied in a financing sustainable manner.

Process:

  1. Budgeting WASH for sustainable results: WASH courses on life cycle cost
  2. Capital and recurrent expenditures benchmarks for water and sanitation

1. Budgeting WASH for sustainable results: WASH courses on life cycle cost

Related to this first question regarding the cost of the project, one should also include discussions over the various financing options. What is the best way to combine the various financing sources in order to get service financial sustainability (and progressive upgrading)? How much should the development program spend? To address these questions, one should keep in mind that the aid project should primarily be designed to trigger a leverage effect for additional sources of funding.

A first step in this phase of the project is an assessment of the financial capacities of households and local authorities.  WASH course on life cycle cost provides tools to assess the financial capacities of households and local authorities. The second step concerns the design of a financing plan including the relative share of the different sources of funding available such as water tariffs (including cross-subsidies among users, geographical equalizations, etc), local taxes, national transfers, international transfers (1% global water solidarity), private participation, loans, grants or subsidized loans. Various solutions exist to respond to the ‘affordability’ criteria of the human right to water and sanitation. The decision concerning the project funding and beyond the service financing strategy, is ultimately a political decision. National and local authorities should be involved in this process (principle of ownership and alignment of international aid) and the project budget should be included into the national/district/or communal budget.

The WASH Cost project has developed sustainability checks for water and sanitation. The tool consists of an excel sheets that provide a quick overview and judgment about the appropriateness of the budget.

Sanitation

Water

For more information this website can be consulted:

2. Capital and recurrent expenditures benchmarks for water and sanitation

The below two tables provide cost ranges for the total capital and total recurrent expenditures for various water and sanitation services. The recurrent expenditures are subsequently broken down into the separate elements. Regardless of how the activities will be financed, these tables function as a useful reference on the actual long term costs of water and sanitation services.

Water

Sanitation