1 / 15

Life-Cycle Cost Approach (LCCA) in the rural WASH sector in Ghana

Life-Cycle Cost Approach (LCCA) in the rural WASH sector in Ghana. Alexander Obuobsa-Darko Country Coordnator. Outline. WASHCost project LCCA concept Key findings Use of LCCA in Ghana. WASHCost project.

aiden
Download Presentation

Life-Cycle Cost Approach (LCCA) in the rural WASH sector in Ghana

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Life-Cycle Cost Approach (LCCA) in the rural WASH sector in Ghana Alexander Obuobsa-Darko Country Coordnator

  2. Outline • WASHCost project • LCCA concept • Key findings • Use of LCCA in Ghana

  3. WASHCost project IRC, KNUST, CWSA through the WASHCost Project is using the Life-Cycle Cost Approach (LCCA) to: ... research the life-cycle costs of providing water, sanitation and hygiene(WASH) services in rural and peri-urban areas in Ghana. analyse the life cycle cost and compare with actual service received by the users … to stimulate the use of cost information to improve decision making at all levels

  4. Business as usual scenario Implement Implement Implement Investment (Capital expenditure) Business as usual Service level Time

  5. SUSTAINABLE Water Service Delivery Investment (Capital expenditure) Implement Investment (Operational expenditure) Replace Upgrade Upgrade Time Service level Service delivery approach

  6. Disaggregated Life Cycle Costs Capital expenditure (CapEx): hardware and software costs of constructing latrines, software (awareness raising) etc Operational and minor maintenance expenditure (OpEx) -cleaning; minor maintenance; treatment Capital maintenance expenditure (CapManEx)– rehabilitation, replacement of assets Direct support costs – post construction activities (training, hygiene awareness, enforcement ) Indirect support cost – macro level planning and policy formulation Costs of capital – costs of loans Life Cycle Costs Components

  7. WASHCost study areas 1273 household surveys (1032 in rural and 241 in small towns)

  8. Sanitation • The cost of rural VIP latrines range (inter-quartile) from US $ 64 –US $ 118 (median US $106). The lump sum capital expenditure for rural VIPs may not be affordable to the poorest in the rural areas. • The operational and minor maintenance expenditure (OpEx) on latrines is between 3-4 US$ per capita per year . • The OpEx on latrines for about five years is greater than the cost of constructing the latrines.

  9. Key findings on Water • Rural water supply with boreholes fitted with hand pumps cost US$ 40 tobuild the facility and an annual recurrent cost of US$ 1 per person to deliver basic water service. • A small towns system with a combination of house connections and standpipes cost US$ 80 to build the facility and an annual recurrent cost of US$ 6 per person to deliver basic water service.

  10. Key findings on Water • Inadequate expenditure on direct support cost (0.5 US $ per person) contributing to significant levels of non functional systems • Low expenditure and Lack of financing mechanism for addressing capital maintenance needs in the sector.

  11. LCCA uptake in Ghana • The use of LCCA to benchmark cost for urban and rural water service delivery MWRWH. • LCCA incorporated in the Sector Strategic Development Plan (SSDP) • LCCA being used to determine • Realistic Expenditure on direct support cost • Level of capital maintenance

  12. For more information: www.washcost.info Thank You

More Related