Sector Investment Plan

This Sector Investment Plan is an Excel spreadsheet for use by the water and sanitation sector in developing countries (Fonseca, et al.). It was developed in 2005 by PEM Consult for a disaggregated cost study in Kenya with the support of the Water and Sanitation Program of the World Bank (WSP) and the Kenyan Ministry of Water and Irrigation.

The associated study presents a step by step methodology for developing sector investment plans.
Some critical steps include (Fonseca, et al.):

• estimation of disaggregated costs based on bill of quantities,
• documentation of disaggregated costs based on actual expenditure, and
• development of generic expenditure functions.

The spreadsheet developed for this study was used to estimate the costs of different water and sanitation technologies in the seven areas falling under the responsibility of Water Service Boards in Kenya. The spreadsheet is set up to include hardware costs (including rehabilitation and replacement), operation and maintenance, direct support costs such as design and support, community mobilisation and hygiene promotion. Rehabilitation costs include both depreciation and renovation (due to backlog in maintenance).

Data can be analysed using per capita and per cubic metre costs. The various technologies costs are calculated according to a standard bill of quantities and compares these costs with the actual cost of projects that have been implemented or planned in Kenya over the previous five to ten years.

Key documents

• Carlevaro, F. and Gonzalez, C., 2010. Costing improved water supply systems for low-income communities : a practical manual. Proceedings of the ICE - Water Management, 164 (3), pp 123–134.

• Jacobsen, M. and Karup, J., 2007. Developing financing strategies in water supply and sanitation: information note prepared by COWI consultants and shortened by the FWG Secretariat. EUWI Finance Working Group. Brussels, Belgium : EUWI Secretariat, European Commission.

• Fonseca C., Dubé A. and Verhoeven J., 2011. Cost-based decision support tools for water and sanitation. Working Paper 4. IRC International Water and Sanitation Centre.

• Heath T., Tibenderana P., Carter R., Danert K and Berhe E., 2009. Borehole Costing Model V2.8 BETA, Cranfield University, UNICEF, SDC, Skat, RWSN.

• Mali. Direction Nationale de l'Hydraulique -ML, 2009. Etude concernant l’evolution future du systeme STEFI : rapport final. Bamako, Mali: Mali, Ministere des Mines, de l'Hydraulique et de l'Energie, Direction Nationale de l'Hydraulique.

• Mehta, M, Fugelsnes T, Virjee K., 2005. Financing the Millennium Development Goals for Water and Sanitation: What Will it Take? International Journal of Water Resources Development, 21(2) pp.239-52.

• Virjee, K., 2007. The sector wide investment and financing tool (SWIFT): model overview : working paper draft . Nairobi, Kenya: Water and Sanitation Program - African Region.

• Water and Sanitation Program (WSP), 2011. Is Africa on Track to Meet Water Supply and Sanitation Targets?

• Wiemers A., 2005. Water and Sanitation Needs Assessment Model. User guide. MDG Needs.

Assessment Tools

• Tandon P., Pizarro G., 2006. Water and Sanitation Needs Assessment Tool for use in assessing national needs to achieve the MDGs. United Nations Development Program (UNDP).

• Ravikumar, J. et al., 2009. The City Sanitation Plan, Database and spreadsheet. South Asia: Water and Sanitation Program.