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{{#ev:youtube|UoB5_7qQXZA|200|right|<center><font size="2">Piloting life-cycle costing <br>for water in Mozambique</font></center>}}
{{#ev:youtube|J70iXmHR3yE|200|right|<center><font size="2">The use of life-cycle <br>costs in WASHTech</font></center>}}
<font size="3" color=#454545>Financial frameworks account for all '''life-cycle costs''', especially for major capital maintenance, support to service authorities and service providers, and monitoring and regulation.</font>
Moving beyond the time-limited project approach to indefinite sustainability means taking into account the full life-cycle costs of water delivery systems. Life-cycle costs (LCC) are the costs of ensuring adequate water, sanitation and hygiene services to a specific population in a determined geographical area - not just for a few years but indefinitely. LCC include the costs of constructing new systems, maintaining them in the short- and long-term, and at higher institutional levels. Costs for both district and national level administration and planning are taken into account, as well as the costs of replacing and extending infrastructure.
===A versatile tool===
===Life-cycle costs===
* [http://www.akvopedia.org/wiki/Capital_Expenditure_(CapEx) [Capital expenditure Expenditure (CapEx)]]: The capital invested in constructing fixed assets such as concrete structures, pumps and pipes. * [http://www.akvopedia.org/wiki/Capital_Maintenance_Expenditure_[Capital Maintenance Expenditure (CapManEx) ]]: Capital maintenance expenditure (CapManEx)]: Expenditure on asset renewal, replacement and rehabilitation costs, based upon serviceability and risk criteria. * [http://www.akvopedia.org/wiki/Cost_of_Capital_(CoC) [Cost of capital Capital (CoC)]]: The cost of financing a programme or project, taking into account loan repayments and the cost of tying up capital.* [http://www.akvopedia.org/wiki/Operational_and_Minor_Maintenance_Expenditure_(OpEx) Operating [Operational and minor maintenance expenditure Minor Maintenance Expenditure (OpEx)]]: Expenditure on labour, fuel, chemicals, materials and regular purchases of any bulk water. * [http://www.akvopedia.org/wiki/Expenditure_Direct_Support_(ExpDS) [Expenditure on direct support Direct Support (ExpDS)]]: Includes expenditure on post-construction support activities direct to local level stakeholders, users or user groups.* [http://www.akvopedia.org/wiki/Expenditure_Indirect_Support_(ExpIDS) [Expenditure on indirect support Indirect Support (ExpIDS)]]: Macro-level support, planning and policy making that contributes to the service environment but is not particular to any programme or project. Indirect support costs include government macro-level planning and policy-making, developing and maintaining frameworks and institutional arrangements and capacity building for professionals and technicians.
===Further reading===
* More information on the life-cycle cost approach and other publications on the topic are available at [http://www.ircwash.org/washcost.info WASHCost] and [http://www.akvopedia.org/wiki/Life_Cycle_Cost_Approach Akvopedia]. * [http://www.waterservicesthatlast.org/media/publications/life_cycle_costs_building_block_summary_sheet Life-cycle costs building block summary sheet]. Water Services That Last. IRC. ===Acknowledgements===* [http://www.waterservicesthatlast.org/resources/building_blocks/financing_to_cover_all_life_cycle_costs Financing to cover all life-cycle costs]. Water Services That Last. IRC. : [[File:IRC new logo.png|left|60px|alt=IRC |link=http://www.ircwash.org/]]