Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
The costs of meeting the SDG WASH targets will be several times higher than investment levels during the MDG era (2000–15). The immense scale of the financing gap calls for innovative solutions. In addition to mobilizing more funding another approa...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/821051542750049782/Better-Use-of-Capital-to-Deliver-Sustainable-Water-Supply-and-Sanitation-Services-Practical-Examples-and-Suggested-Next-Steps http://hdl.handle.net/10986/30870 |
| Summary: | The costs of meeting the SDG WASH
targets will be several times higher than investment levels
during the MDG era (2000–15). The immense scale of the
financing gap calls for innovative solutions. In addition to
mobilizing more funding another approach is to deliver the
needed infrastructure more efficiently and effectively and
thus reduce the financing gap. Capital expenditure
efficiency (CEE)—the efficient and effective use of
capital—is less documented compared to operational
efficiency. Although improving operating efficiency is
frequently highlighted and readily evaluated, the scope for
capital cost efficiencies is poorly understood, frequently
overlooked, and difficult to evaluate, even though the scale
of savings can be significant—in fact, capital and operating
costs are equally important when considering full cost
recovery. This study compiles case studies that show the
"art of the possible" in CEE. The report
is not encyclopedic—many more examples could surface from a
comprehensive study. It also doesn’t quantify the savings
possible through increasing CEE. However, almost all the
examples show capital savings of 25 percent or more compared
to traditional solutions. This alone this should give policy
makers, donors, and utility managers pause for thought and
encourage them to develop CEE in their sectors, projects, or
utilities. A 25 percent improvement in CEE would allow
existing investments to deliver a 33 percent increase in benefits. |
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