Presentation by Nick Dickinson and Catarina Fonseca at the 2014 WASH Sustainability Forum - RAI, Amsterdam, The Netherlands

1. Supporting water sanitation
and hygiene services for life
30 June 2014
Life-cycle Costing for
Sanitation Services
Nick Dickinson & Catarina Fonseca
2014 WASH Sustainability Forum
RAI, Amsterdam, The Netherlands

2. IRC’s vision on financial sustainability
To achieve sanitation services for
Everyone Forever:
- Understand the cost of services
- Revenue and expenditure match over time
- Ensure a basic level of service for everyone

3. Steps in tool logic
Using a real case example
1. Defining and organising costs components
2. Cost components over time
3. Defining service levels

4. 1. Defining and organising cost components
Overall, which expenditure/costs need to be taken into
account for the programme? One-off expenditure AND
recurrent expenditure.
=> Write main components on post its
Organise the expenditure per cost component
=> Stick the post its in the cost pie

5. Capital expenditure
Operational expenditure
Capital maintenance
expenditure
Costs of capital
Direct support
Indirect support
Defining and organising cost
components

6. 2. Cost components over time
Per cost component, who has to pay over time?
=> Write on chart

7. Time
Who? What
cost?
Who? What
cost?
What
cost?
Who?
Cost components over time

8. 3. Defining service levels achieved
What is the overall service level achieved in the area of
intervention
=> Answer questions in chart

9. 1. Majority of families have access to latrine with impermeable slab?
Yes No
1a. One of more toilets available in
compound?
1b. Separation between faeces and users
Yes No Yes No
Improved service Basic service Limited service No service
2. Facilities used by all members of the household?
Yes Used only by some No or insufficient use
Improved service Basic service No service
3. Regular operation and maintenance requires minimal user effort (inc. pit
emptying)?
Yes Unreliable No maintenance and dirty
toilets
Improved service Basic service No service
4. Problematic environmental impact?
No Yes
4a. Re-use of safe by-products? 4b. High population density?
Yes No No Yes
Improved service Basic service Limited service No service
Level of service achieved

10. Costs and service levels
=> Discuss impact of reduction/increase of costs on
service levels

11. The goal of the free online tools
The life-cycle costs approach is accessible to
everyone
− Get started quickly
− Improve access to data: expenditure and
revenue are hard to share
− Easily communicate with stakeholders about life-
cycle costs and service levels

12. Tools to:
• Learn about life-cycle costs
• Collect and analyse data
• Share results

13. Tools to learn about life-cycle costs
LIFE-CYCLE COSTING TOOLS

17. LIFE-CYCLE COSTING TOOLS

18. Collecting and analysing life-cycle costs
LIFE-CYCLE COSTING TOOLS

19. Collecting data
LIFE-CYCLE COSTING TOOLS

20. Data collection & analysis
LIFE-CYCLE COSTING TOOLS

21. LIFE-CYCLE COSTS

22. Sharing and communicating about
life-cycle costs

26. Access all resources
http://www.ircwash.org/resources/washcost-tools