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Operational and Minor Maintenance Expenditure (OpEx)

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Operations and minor maintenance expenditure is the cost of routine minor maintenance needed to keep water and sanitation systems running at the designed performance. It includes recurrent, regular and on-going expenditure on labour, fuel, chemicals, materials, or purchases of bulk water. Operational expenditure also includes ''household coping costs'' by which households spend money to achieve a satisfactory level of service; i.e. cleaning products for sanitary facilities, energy costs, etc.
Operations and minor maintenance expenditure does not include major repairs or renewals of water or sanitation infrastructure. This is considered expenditure on [[Capital Maintenance Expenditure (CapManEx)|capital maintenance (CapManEx)]].
===Examples===
'''Benchmarks capital maintenance expenditure''' <br>
Based on research from [[#WASHCost|WASHCost]], the minimum operations and minor maintenance expenditure to provide a basic level of water service with a borehole and handpump (at 2011 prices) range from US$ 0.5 per person to just over US$ 1 per person (see table 1). For all piped schemes, including mechanised boreholes and piped supplies, the costs range from US$ 0.5 to just over US$ 5 per person.
* If a basic level of service is being delivered and expenditure is outside the cost benchmarks, then there may be context-specific explanations; such as the service is in a densely-populated area with economies of scale, or, conversely, the area is difficult or remote to reach.
===Operational expenditure on water services in Ghana===
WASHCost Ghana (Nyarko et al., 2011a) measured operational and minor maintenance expenditure by using the actual recorded expenditure from 53 water point-systems. Actual operational expenditure at current cost (2009 year) ranges from US$ 0 to 102 per facility per year, with a mean of US $ 40 per year (median US$ 21) (see table 1).
Of the 53 systems, 12 reported spending no money on operational expenditure at all (Nyarko, et al., 2011a). Annual operational costs per person based on actual (observed) population are from US$ 0 to US$0.72, with a mean US$ 0.15 (median US$ 0.07). It can reasonably be assumed that the generally low expenditure reported on operations and minor maintenance is linked to the high observed levels of non-functioning systems (29%) (for more information see Nyarko et al., 2011b)
===Key documents===* Gibson, J., 2010. [http://www.ircircwash.nl/mediaorg/irc_symposium_2010_pdf_sresources/3_gibson_operation_maintenancecostsofrwssinsafrica3 operation-and-maintenance-costs-rural-water-supply-schemes-south-africa-paper-presented Operation and maintenance costs of rural water supply schemes in South Africa]: paper presented at the IRC symposium ''Pumps, Pipes and Promises: Costs, Finances and Accountability for Sustainable WASH Services'' in The Hague, The Netherlands from 16 - 18 November 2010. The Hague, The Netherlands: IRC International Water and Sanitation Centre.
* IRC, 2012. [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.
* 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.
* Nyarko, K.B. et al., 2011a. [http://www.washcostircwash.infoorg/pageresources/1441 life-cycle-costs-approach-wash-services-last-life-cycle-costs-ghana-post-construction Life-cycle costs in Ghana: post-construction costs of water point-systems]. (WASHCost briefing note Ghana; 2). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
* Nyarko, K.B. et al., 2011b. [http://www.washcostircwash.infoorg/pageresources/2319 life-cycle-costs-approach-wash-services-last-life-cycle-costs-ghana-functionality-rural Life-cycle costs in Ghana: functionality of rural water systems in Ghana]. (WASHCost briefing note Ghana; 6). The Hague, The Netherlands: IRC International Water and Sanitation Centre.
===Links===
<div id="WASHCost">'''WASHCost'''</div>
* The WASHCost project 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.ircwash.org/washcost.info 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: [http://www.washcostircwash.infoorg/pagenode/2448 22800 WASHCost Online Training]
* 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 detailed household surveys and range of specific research undertaken with stakeholders in each country. The data sets are available at [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, multi-country 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/ Water Services That Last]
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