Big picture - Module 1

People expect water, sanitation and hygiene (WASH) services to last. However, despite increasing WASH coverage, there is also evidence of high rates of system failure and ‘slippage’, where some users and communities fall back to a lower level of service or have to revert to unsafe and unreliable facilities or practices. The service delivery approach emphasises all the components necessary to deliver a service, consisting of both the hardware (engineering or construction elements) and software (awareness raising, capacity building, institutional support) required to provide a certain level of access to the service provided. Considering all the costs – from capital investment to maintenance, minor and major repairs, direct and indirect support costs and the costs of capital for asset is an essential aspect of a service delivery approach and provides the framework and tools for collecting and assessing costs. We refer to this as the life-cycle cost approach. Module 1 introduces the key concepts for water and sanitation services that last.

Life-cycle Cost Approach - Module 1

16 Sep 11

Life-cycle costs refers to all the costs required to ensuring indefinite WASH services to a specific population in a determined geographical area. These costs include the construction and maintenance of systems in the short and longer term, taking into account the need for hardware and software, operation and maintenance, capital maintenance, the cost of capital, source protection and the need for direct and indirect support, including training, planning and institutional pro-poor support. But it is not enough to only think about parts and labour. It is also important to ensure that financial systems are in place so that infrastructure can be replaced and can respond to increases in demand.

Applying life-cycle costs to your service delivery planning requires that all aspects of services are taken into consideration, including: operation, rehabilitation and replacement. Maintaining adequate service levels also depends on the competence and resources of providers. Costs for learning and capacity building must also be taken into account. Once you take into account all of the costs combined, then you have the summation of the total cost of providing a sustainable level of service.

Module 1.pdf (1.3 MB)