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Costs of WASH Service Delivery - Introduction

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The costs of water, sanitation and hygiene services include expenditure on construction of water and sanitation systems, operation and maintenance and eventual rehabilitation of infrastructure. It also includes training and support to service providers, cost of capital, and expenditures for monitoring, planning and policy making. They are often referred to as life-cycle costs; the costs of delivering water, sanitation and hygiene services indefinitely to a specific population in a particular geographic area.

<div id="Life-cycle costs ">'''Life-cycle costs'''</div> 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]]

When the total cash flow is broken down into the [[#Life-cycle costs|life-cycle cost ]] categories, only a small amount of the total cash flow need per year to keep the projects running was covered by the community in form of operation and maintenance costs (e.g. 24%) as shown in figure 3 (Koestler, Koestler and Koestler, 2010).

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