This paper illustrates the usefulness of the life-cycle costs approach (LCCA) framework and methodology in addressing slippage and sustainability issues in the WASH sector in the State of Andhra Pradesh (AP), India. The paper examines the actual cost of provision in 40 villages spread over two agro-climatic zones by cost components and identifies the gaps in (public) investments and how these gaps are responsible for poor, inequitable and unsustainable service delivery. The analysis brings out clearly that government expenditure on WASH is almost exclusively capital expenditure on infrastructure while other important cost components like planning and designing, capital maintenance, source sustainability, water quality, etc., receive little or no allocation. Moreover, the actual life of infrastructure is much less than the normative life span, which is the basis for cost estimates. This results in ad hoc investments in capital maintenance expenditure and poor service levels. The key message of the paper is that “the rural drinking water sector is underfunded and funding allocations for rural water are distorted”. It is argued that budget allocations to the drinking water sector need to be revised with due allocation for other important components such as source sustainability, capital maintenance, water quality and climate change, etc. The paper argues in favour of a paradigm shift in terms of developing a comprehensive and realistic costing mechanism that addresses various aspects of drinking water like slippage, water quality, etc. LCCA is one such tool that can contribute towards achieving water security at the household level.

/pdf/life-cycle-costs-approach-lcca-for-sustainable-water-service-2lhowf8j8q.pdf

Life-cycle costs approach (LCCA) for sustainable water service delivery: a study in rural Andhra Pradesh, India

This paper reviews the existing research work on the application of Life-cycle cost approach (LCCA) with an objective to identify potential aspects for its adoption in the developing countries. It seeks to influence the policy understanding of why life-cycle cost assessment is central to achieving the goals of sustainable development as well as sustainable service delivery and to influence the behaviour of sector stakeholders. The idea is to mainstream LCCA into governance processes at all institutional levels from local to national in order to increase the ability and willingness of decision makers (both users and those involved in service planning, budgeting and delivery) to make informed and relevant choices between different types and levels of products and services. It is argued that a comprehensive LCCA can provide 'win-win' strategies in terms of identifying appropriate technologies, products and services that are environmentally, economically and socially sustainable. LCCA prompts policy shifts towards a systems perspective. Adoption of LCCA evolves from life-cycle thinking that needs to be ingrained into the macro policy. This calls for awareness building and capacities at the policy and planning levels.

Life-Cycle Cost Analysis of Infrastructure Projects

As discussed, life-cycle cost approach (LCCA) has evolved from a project appraisal tool to a more comprehensive method of incorporating sustainable development aspects in various sectors. LCCA could be conceived in the broader sustainable development framework. The framework consists of three interconnected sustainability dimensions, such as economic, environmental and social. Economic sustainability concept draws from the public finance framework using financial and economic assessment of investments.

Life-cycle Cost Approach (LCCA): Framework and Concepts

How effective are the new WASH security guidelines for India? An empirical case study of Andhra Pradesh

/pdf/financing-the-wash-sector-in-india-cost-of-provision-and-39dnboq1ok.pdf

Financing the WASH Sector in India Cost of provision and budget Allocations

Water, sanitation and hygiene services are central to addressing poverty, livelihoods and health. They are also critical in addressing the needs of poor communities and in achieving the Millennium Development Goals (MDGs). The paper highlights the efforts of Government to reach these targets are often subjected to many challenges.

Costs of Providing Sustainable Water, Sanitation and Hygiene Services in Rural and Peri-Urban India

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Costs of Providing Sustainable Water, Sanitation and Hygiene Services in Rural and Peri-Urban India