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Costs of WASH Service Delivery - Introduction

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Life-cycle costs are divided into six categories (see figure 1 below). These six categories are related to ''onetime expenditures'' on providing or upgrading a service, also known as capital expenditure (in green in figure 1) and ''recurrent expenditures'' (in blue in figure 1) on maintaining a service at its intended level.
[[Image:Costs intro fg 1.jpg|thumb|center|600px|Figure 1. Source: Fonseca, C. et al., 2010b]]
[[Capital Expenditure (CapEx)|Capital Expenditure (CapEx)]] is the costs 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 the first time construction of water and sanitation systems such as concrete structures, wells, pumps, pipes or toilets prior to implementation of the service. Capital expenditure can also include expenditures to improve or expand existing water or sanitation systems.
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