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Benefit Assessment in MUS. Guide for Groupwork and Discussion. Benefit definition. Service level (point on water ladder) and not infrastructure or technology choice Quantity Quality Access Reliability Status (JMP-defined coverage). Measurable categories Crop production Fish production

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Benefit assessment in mus

Benefit Assessment in MUS

Guide for Groupwork and Discussion

Benefit definition
Benefit definition

  • Service level (point on water ladder) and not infrastructure or technology choice

    • Quantity

    • Quality

    • Access

    • Reliability

    • Status (JMP-defined coverage)

Benefit categories

Measurable categories

Crop production

Fish production


Livelihoods, jobs created

Health (disease)


Power generation

Domestic & industry

Overall purpose

Environment, optimize water use (e.g. seasonal hydrology)

Community resilience

Sustainability (multiple meaning)

Equity (gender, poor, marginalized people)

Achieved through

Improved policy and implementation (transparent intersectoral & multiple stakeholder coordination and participation)

Benefit categories

Benefit is scenario-dependent (D+ or I+ or Community MUS)

Measured by social group,

income level, type of user

Outputs of cba economic analysis
Outputs of CBA (economic analysis)

  • Cost-benefit ratio (CBR), Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period

    • Financial versus non-financial versus economic

    • Household or broader societal

  • Cost-effectiveness analysis??

  • Other relevant economic indicators

    • $ benefit per additional litre per capita per day

    • Additional income per family per year

    • Economies of scale (present or not?)

    • Process indicators, such as productivity

  • Financing: CBA helps define who pays

    • Share of water, share of benefit, share of cost

For discussion
For discussion

  • What type of economic analysis to conduct?

  • What is the comparator in economic analysis?

  • How will a better understanding of the benefits facilitate practical decision making?

  • Which benefits to include and measure?

    • Which benefits have the most traction with policy makers (e.g. National goals or MDGs)?

    • Design and survey tools required for the task (e.g. determine causality of effect)

    • Valuation methodologies

  • Validating the benefits

    • Compare actual impacts with ex ante