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...

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Main Authors: Kingdom, Bill, Lloyd-Owen, David, Tremolet, Sophie, Kayaga, Sam, Ikeda, John
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
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
id okr-10986-30870
recordtype oai_dc
spelling okr-10986-308702021-05-25T09:19:56Z Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps Kingdom, Bill Lloyd-Owen, David Tremolet, Sophie Kayaga, Sam Ikeda, John CAPITAL EFFICIENCY CAPITAL EXPENDITURE SERVICE DELIVERY WATER SUPPLY WATER AND SANITATION WATER UTILITIES TECHNOLOGY ADOPTION PROCUREMENT PROJECT DESIGN WATER DEMAND WATER AND SEWERAGE 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. 2018-11-26T16:23:07Z 2018-11-26T16:23:07Z 2018-11 Working Paper 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 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CAPITAL EFFICIENCY
CAPITAL EXPENDITURE
SERVICE DELIVERY
WATER SUPPLY
WATER AND SANITATION
WATER UTILITIES
TECHNOLOGY ADOPTION
PROCUREMENT
PROJECT DESIGN
WATER DEMAND
WATER AND SEWERAGE
spellingShingle CAPITAL EFFICIENCY
CAPITAL EXPENDITURE
SERVICE DELIVERY
WATER SUPPLY
WATER AND SANITATION
WATER UTILITIES
TECHNOLOGY ADOPTION
PROCUREMENT
PROJECT DESIGN
WATER DEMAND
WATER AND SEWERAGE
Kingdom, Bill
Lloyd-Owen, David
Tremolet, Sophie
Kayaga, Sam
Ikeda, John
Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
description 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.
format Working Paper
author Kingdom, Bill
Lloyd-Owen, David
Tremolet, Sophie
Kayaga, Sam
Ikeda, John
author_facet Kingdom, Bill
Lloyd-Owen, David
Tremolet, Sophie
Kayaga, Sam
Ikeda, John
author_sort Kingdom, Bill
title Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
title_short Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
title_full Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
title_fullStr Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
title_full_unstemmed Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services : Practical Examples and Suggested Next Steps
title_sort better use of capital to deliver sustainable water supply and sanitation services : practical examples and suggested next steps
publisher World Bank, Washington, DC
publishDate 2018
url 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
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