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

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