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Financial approaches

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Cost recovery for operation and maintenance
== Cost recovery for operation and maintenance ==
According to the BMGF lanscaping, this approach principle has been identified mainly in water related service delivery approachapproaches. The idea is that the actual user pays users pay the cost for operation and maintenance as a contribution to the whole system.
The principle that users should pay for recurrent costs has gained widespread acceptance in the last years, specifically for the rural sector in many countries. Urban users pay through regularised billing in many cases. However, tariffs are often set too low (sometimes for political reasons) and generally do not cover the true costs of system replacement over the long-term.
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