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Capital Expenditure is the cost of providing a water or sanitation service to users where there was no service before; or of substantially increasing the level of services received by users. It includes the capital invested in first time construction or purchase of fixed assets such as concrete structures, wells, pumps, pipes or toilets prior to implementation of the service and to improve or expand existing water or sanitation systems. Costs for rehabilitation or replacement of major parts of a water or sanitation system, such as replacing a pump, are considered expenditure on [[Capital Maintenance Expenditure (CapManEx)|capital maintenance (CapManEx)]].
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===Examples===
According to the 2012 GLAAS report (WHO and UN-Water, 2012, 29), 69% of funds for water and sanitation expended in 11 respondent countries were directed towards Capital Expenditure (see figure 1).
In contrast, [[Single Ventilated Improved Pit | Ventilated Pit Latrines (VIP)]] in Ghana are approximately 10% more expensive in rural areas than in small towns (see figure 2). Ventilated Pit Latrines (VIPs) costs in Burkina Faso are much higher than the found costs in neighbouring Ghana as well as in Mozambique. Ventilated Pit Latrines (VIPs) consistently cost between US$ 300 and US$ 600 to construct in Burkina, compared with average costs of between US$ 100 and US$ 250 in the other two countries. The occasional VIP in Ghana and Mozambique is of a comparable cost to those in Burkina Faso, but the majority cost three to four times less. The proportionally higher slab latrine costs in Burkina Faso reinforce the findings that the construction of latrines is generally more expensive here than in Mozambique.
===Key Documents===* Batchelor, C., Fonseca, C., and Smits, S., 2011. [http://www.ircircwash.nlorg/pageresources/66835 life-cycle-costs-rainwater-harvesting-systems Life cycle costs of rainwater harvesting systems]. (Occasional paper series / IRC; 46). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
:In partnership with IRC and the Rainwater Harvesting Implementation Network, WASHCost studied the historical trends and drivers of adopting Rain Water Harvesting (RWH). Detailed comparisons are made between life-cycle costs of RWH systems and the life-cycle costs of other water supply systems.
* Burr, P. and Fonseca, C., 2011. [http://www.washcostircwash.infoorg/pageresources/1626 applying-life-cycle-costs-approach-sanitation-costs-and-service-levels-andhra-pradesh Applying the life cycle costs approach to sanitation: costs and service levels in Andhra Pradesh (India), Burkina Faso, Ghana and Mozambique]. (WASHCost briefing note; 3). [online] The Hague, The Netherlands: IRC International Water and Sanitation Centre.
:This briefing note presents an application of the life-cycle costs (LCCA) approach to sanitation in rural and peri-urban areas in four different countries— Andhra Pradesh (India), Burkina Faso, Ghana, and Mozambique. The document compares the differences between the financial costs of traditional and improved latrines, and the quality of service delivered to users.
* Fonseca, C. et al., 2011. [http://www.washcostircwash.infoorg/pageresources/1557 briefing-note-1a-life-cycle-costs-approach-costing-sustainable-service Life cycle costs approach: costing sustainable services]. (WASHCost briefing note; 1a). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
:This briefing note describes the life-cycle costs approach and why it was developed. It explains the main cost components for water and sanitation in rural and peri-urban areas.
* IRC, 2012a. [http://www.washcostircwash.infoorg/pageresources/2386 providing-basic-level-water-and-sanitation-services-last-cost-benchmarks Providing a basic level of water and sanitation services that last: cost benchmarks]. (WASHCost infosheet; 1). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
:Information sheet provides an overview of the minimum benchmarks for costing sustainable basic services in developing countries. The benchmarks have been derived from the WASHCost project dataset and the best available cost data from other organisations all over the world. The benchmarks are useful for planning, assessing sustainability from a cost perspective and for monitoring value for money.
* IRC, 2012b. [http://www.washcostircwash.infoorg/pageresources/2439 cost-sustaining-sanitation-services-20-years-can-be-5-20-times-cost-building-latrine The cost of sustaining sanitation services for 20 years can be 5-20 times the cost of building a latrine]. (WASHCost infosheet; 2). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
* Smits, S. et al., 2011. [http://www.washcostircwash.infoorg/pageresources/1567 arrangements-and-cost-providing-support-rural-water-service-providers Arrangements and cost of providing support to rural water service providers]. (WASHCost working paper; 5). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
* WHO and UN-Water, 2012. [http://washurl.net/6jo133 UN-Water global annual assessment of sanitation and drinking-water (GLAAS) 2012 report: the challenge of extending and sustaining services]. (UN-water global annual assessment of sanitation and drinking-water (GLAAS) report; 2012). Geneva, Switzerland: World Health Organization (WHO).
===Links===
<div id="WASHCost">'''WASHCost'''</div>
* WASHCost was a five-year action research programme, running from 2008 to 2012. The WASHCost team gathered information related to the costs of providing water, sanitation, and hygiene services for an entire life cycle of a service -- from implementation all the way to post-construction. The WASHCost programme was led by IRC International Water and Sanitation Centre with several partners to collect data in the rural and peri-urban areas of Burkina Faso, Ghana, India, and Mozambique. For more information see: [http://www.washcostircwash.infoorg/ washcost WASHCost].
* The Costing Sustainable Services online course was developed to assist governments, NGOs, donors and individuals to plan and budget for sustainable and equitable WASH services, using a life cycle cost approach. The life cycle cost approach is a methodology for costing sustainable water, sanitation and hygiene service delivery and comparing the costs to the level of service received by users. For more information see go [http://www.washcostircwash.infoorg/pagenode/2448 washcost.info/page/244822800 here]
* WASHCost data sets provide access to the validated life cycle cost and service level information collected in Burkina Faso, Ghana, Andhra Pradesh (India), and Mozambique between 2009 2010. The data has been collated from a number of sources including infrastructure surveys, detailed household surveys and range of specific research undertaken with stakeholders in each country. The data sets are available on [http://www.washcostircwash.infoorg/pagenews/2716 washcost.info/page/2716datasets-now-available-wash-expenditure-and-service-levels-four-countries-2009-2010 here]
* Triple-S (Sustainable Services at Scale) is a six-year, multinational learning initiative to improve water supply to the rural poor. It is led by IRC International Water and Sanitation Centre. The initiative is currently operating in Ghana and Uganda. Lessons learned from work in countries feeds up to the international level where Triple-S is promoting a re-appraisal of how development assistance to the rural water supply sector is designed and implemented. For more information see [http://www.waterservicesthatlast.org/ waterservicesthatlast.org/]
