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Financial approaches

8 bytes removed, 00:45, 6 May 2016

→‎Cost recovery for operation and maintenance

The tariff structures through which cost recovery strategies are put in place, as well as costing mechanisms need better incentives, strategies and support to enhance efficiency (benchmarking, water metering etc.). The -poor needs differential (social) tariffs. In rural Gujarat 25 water user committees have successfully started to set-up operation and maintenance funds.

<ref>httphttps://www.wsp.org/publicationsregions/sa_indiapoor.pdfsouth%20asia</ref> However, most urban and rural schemes in India survive on large operating subsidies. <ref>http://siteresources.worldbank.org/INTINDIA/Resources/Bridging_the_Gap_Exec_Sum.pdf</ref>.

This could be the most suitable financial model for service delivery, which could even have a higher impact if also repairs and replacement were accounted and financed.

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Winona

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