Tracking direct support and capital maintenance cost in rural water service delivery in Ghana

Tracking direct support and capital maintenance cost in rural water service delivery in Ghana

Kwabena B Nyarko 1 and Bismark Dwumfour-Asare2

1. Kwame Nkrumah University of Science and Technology, Kumasi, Ghana2. University of Education Winneba, Asante-Mampong Campus, Ghana

Outline of presentation

• Introduction • Objective• Methodology• Results • Conclusion

Monitoring Sustainable WASH Service Delivery Symposium

Tracking direct support cost and capital maintenance in rural water service delivery in Ghana, Nyarko

Introduction• Ghana’s rural water coverage has been

increasing steadily but there are concerns with high levels of non-functional water systems and the low levels of water service that users receive

• The concerns (high levels of non-functional water systems and low water service levels) partly due to inadequate levels of recurrent expenditure.– Water point systems deliver acceptable services to only 1/3

of the population– Small towns piped schemes deliver to only 2/3 of the

population



Disaggregated Life cycle costs



Objective

• To track the direct support and capital maintenance costs of rural water services:– Actual expenditure of direct support cost and Capital

maintenance– Ideal expenditure on direct support and capital

maintenance



Methodology• Monitoring actual direct support and capital

maintenance expenditure from stakeholder. • Identifying the realistic direct support cost through

budgeting exercise with Districts and CWSA (Govt agency).– For districts, LCCA training was used – National, Technical committee to budget direct support

and Innovative Financing



Results –Actual ExpDS

• Actual direct support cost (ExpDS) from the national, regional and district office ranges from US$ 0.47 and US$ 0.60 per capita/yr for decentralised water (or WASH) services in Ghana.



Results – CapManEx for rural water point systems

• CapManEx for rural water point systems (boreholes fitted with handpumps) defined as handpump replacement or well hydro-fracturing/redevelopment.

• Based on limited data on cost of HP replaced after 25 years, – CapManEx per handpump borehole is US $ 83 per year– CapManEx per person per year is US $ 0.3 (design

population) and US $ 0.6 for the actual population



Results – CapManEx for small towns water systems


• Cost per system ranges from US$ 1,680 to US$ 4,179 per year

• The per capita annual cost ranges from US$ 0.1 to US$ 1 (with an average of US$ 0.37 per cap/yr).

• Global WASHCost benchmarks: US$ 3 – 15 per capita/yr (WASHCost, 2012)


Results - Ideal direct support cost

District level expenditure • Direct support cost per

district ranges from US$ 18,000 to US$ 32,000 per year (excluding salaries)

• Direct support cost per capita ranges from US$ 0.3 to US$ 0.4 per year (including salaries)



Results - Ideal direct support cost


• National and Regional level expenditure ranges from US $ 0.48 to US $ 0.54 per capita per yr

• Total direct support needed for decentralised WASH services delivery ranges from US$ 0.72 to US$ 0.89 per capita per yr


Ideal Capital Maintenance Expenditure


Is about …….

•Asset Management planning

•Financing Mechanisms– Pool funding– Insurance


Conclusion• The WASHCost Life cycle cost approach provides a

good framework for monitoring cost of water service delivery, which is important for planning and decision making

• The tracking of direct support led to use of LCCA for planning and budgeting for direct support cost.

• Tracking of CapManEx has led to discussions on:• Identification of financing mechanism (pool funding and

insurance)• Asset management planning



Thank you



Business

Tracking direct support and capital maintenance cost in rural water service delivery in Ghana