Life cycle costing in mozambique agua-san
•Descargar como PPT, PDF•
0 recomendaciones•534 vistas
1) The document discusses the application of life cycle costing (LCCA) in rural water and sanitation projects in Mozambique. It describes the country context and challenges with WASH services. 2) A learning alliance was formed to collect cost data through sampling different project types, including rural water supply, small town systems, sanitation, and peri-urban areas. 3) The LCCA was used to analyze capital expenditure, capital maintenance expenditure, direct support costs, and cost of capital. This provided transparency and identified opportunities to reduce costs and improve planning.
Recomendados
Recomendados
Más contenido relacionado
Similar a Life cycle costing in mozambique agua-san
Similar a Life cycle costing in mozambique agua-san (20)
Más de IRC
Más de IRC (20)
Último
Último (20)
Life cycle costing in mozambique agua-san
- 1. Mozambique
- 2. Applying Life Cycle Costing in Mozambique Embedding cost analyses
- 3. Content 1. Background 2. Learning alliances and theory of change 3. Data collection – including sampling 4. Obtained information on all different cost pies 5. Linking costing with finance Moz Examples of use of LCCA in Mozambique June 2012
- 4. MOZAMBIQUE 20 million people , 800.000 km2 10 Provinces , 128 provinces GDP (current US$ 418) RankedExamples of usecountriesin Mozambique Moz 172 out of 177 of LCCA (Human Development report 07/08) 2012 June
- 5. Country context National water law (1992) & Water Policy (1995/1997): Service levels according to demand and economic capacity Tariff for recovery of O &M Decentralisation Privatisation Moz Examples of use of LCCA in Mozambique 5 June 2012
- 6. WASHCost Launched November 2008 Memorandum of understanding Hosted by government Learning alliance members: National and provincial gov. International NGOs Some districts and communities Universities Moz Examples of use of LCCA in Mozambique 6 June 2012
- 7. RURAL WATER SUPPLY Community ownership Borehole (20-70 m) AFRIDEV Shallow wells Mini systems starting up Mainly domestic use Moz Examples of use of LCCA in Mozambique June 2012
- 8. SMALL SYSTEMS o Rehabilitated systems o Mainly ground water o Limited coverage of town o Trend towards private operator Moz Examples of use of LCCA in Mozambique June 2012
- 9. SANITATION AND HYGIENE o Traditional latrines o Slab latrines o Institutional latrines o Community mobilisation (PEC) Moz Examples of use of LCCA in Mozambique June 2012
- 10. PERI-URBAN • High number Private operators • Public tap stands • Higher sanitation coverage • Unclear admin structure Moz Examples of use of LCCA in Mozambique June 2012
- 11. Content 1. Background 2. Learning alliances and theory of change 3. Data collection – including sampling 4. Obtained information on all different cost pies 5. Linking costing with finance Moz Examples of use of LCCA in Mozambique June 2012
- 12. Theory of change Moz Examples of use of LCCA in Mozambique June 2012
- 13. Theory of change experience • Redefine LA to country context – GAS group • LA does not validate, only advices • Don´t ask others to do your work.... • Great exposure but don´t overload – work with in much smaller groups 2-5 people Moz Examples of use of LCCA in Mozambique June 2012
- 14. Content • Background • Learning alliances and theory of change • Data collection – including sampling • Obtained information on all different cost pies • Linking costing with finance Moz Examples of use of LCCA in Mozambique June 2012
- 15. Data Collection Sample strategy Good aspects Learning lessons 2. Working with 2. Poor Urban areas Statistics are actually rural Methodology worked well 3. Community boundaries 3. Credible sampling unclear 4. Logistics 5. Unique situations 6. Go to where costs are
- 16. Applying the LCCA in Mozambique 1. Understanding Capital Expenditure - CapEx (Provincial) 2. Capital Maintenance Expenditure CapManEx (District) 3. Visualizing expenditure on Direct Support (District) 4. Cost of Capital (National) Moz Examples of use of LCCA in Mozambique June 2012
- 17. The use of LCCA in Mozambique 1. Understanding CapEx costs - Borehole construction & supervision - Average borehole costs - Variance over regions and years Moz Examples of use of LCCA in Mozambique June 2012
- 18. The use of LCCA in Mozambique 4 times larger lot indicates 20% lower unit rateperson (500 p bh) Per Per person (300 p bh) Moz Examples of use$ 27 in Mozambique of LCCA $ 462012 June
- 19. The theory of change • Transparency • Cost reduction Facilitation of the Learning Alliances Better How much does 2011 Contracts Data from identification of Implementation gaps in planning a borehole cost? • Cost per region Better • Cost per person 2011 planning Data used in dissagregated • Cost per contractor planning lifecycle unit costs • Cost per funder • Current cost over time Moz Examples of use of LCCA in Mozambique June 2012
- 20. The use of LCCA in Mozambique 1. Understanding CapEx costs Actual Policy Actions: • A transparency & accountability tool • Cycles of yearly updated values for budgeting In progress: • Influence of donors, procurement (lot Size) • Trends over time – better budgetting Moz Examples of use of LCCA in Mozambique June 2012
- 21. The use of LCCA in Mozambique 2. Understanding Capital Maintenance Expenditure - What does it include? - How is it different from O&M? Moz Examples of use of LCCA in Mozambique June 2012
- 22. The use of LCCA in Mozambique - Costs are high and unclear (>2000 USD) - Identification of outliers – Transparency and cost drivers Moz Examples of use of LCCA in Mozambique June 2012
- 23. The use of LCCA in Mozambique Capital maintenance expenditure Policy at the moment CapManEx value identical for all districts Desired policy: District budget realistic for CapManEx (based on quantity, age and type of infrastructure) Moz Examples of use of LCCA in Mozambique June 2012
- 24. Spending 100.000 USD – example • 10 new boreholes • 8 new boreholes @ @ 10.000 USD 10.000 = 80.000 • 10 rehabilitations @ 100 bhs 2.000 = 20.000 - 10 bhs breakdown 100 bhs +10 new bhs +8 bhs ----------- --------- 100 bhs 108 bhs Incorporate CapManEx into CapEx
- 25. The use of LCCA in Mozambique 3. Expenditure on Direct Support - What does it include? - How it was calculated? Moz Examples of use of LCCA in Mozambique June 2012
- 26. The use of LCCA in Mozambique Expenditure on Direct Support Currently there is a wide variance District size (thus distance) influences per person costs. A three times larger district has roughly double the costs. Moz Examples of use of LCCA in Mozambique June 2012
- 27. The use of LCCA in Mozambique Expenditure on Direct Support Actual Policy actions: The average cost is US$ 1.1 per person per year, and the median is US$ 0.6. Average 100,000 USD per district Desired actions: Direct support should be based on combination of coverage, population density and access Moz Examples of use of LCCA in Mozambique June 2012
- 28. The use of LCCA in Mozambique 4. Cost of Capital Financing large water and sanitation programs with long term loans For example: Loan of 20 million USD for 50 years, with 10 year grace. 0.75% interest Moz Examples of use of LCCA in Mozambique June 2012
- 29. The use of LCCA in Mozambique 4. Cost of Capital Policy actions: - Awareness raising of burden of loans - Making cost of capital integrated in particular in small town systems. - Realistic allowable return on equity (for private operators) Moz Examples of use of LCCA in Mozambique June 2012
- 30. Lessons learned • Linking costing with transparency • Using yearly cycles for updating values • The strengths and threats of “quick wins” – working with a learning alliance • Examples of policy actions Moz Examples of use of LCCA in Mozambique June 2012
- 31. Content • Background • Learning alliances and theory of change • Data collection – including sampling • Obtained information on all different cost pies • Linking costing with finance Moz Examples of use of LCCA in Mozambique June 2012
- 32. Discussing items • Ideal costs, where are they? Can modelling help? USD 2 USD 1 2 USD USD 5 USD 5 1 USD Moz Examples of use of LCCA in Mozambique June 2012
- 33. Discussing items • Sanitation Recurrent cost – whatxneeds 1.5 14 to be planned from governament view? 1.7 x USD 2.9 x 8.8 USD 51.8 USD 2.2 USD 1.8 USD Moz Examples of use of LCCA in Mozambique June 2012
- 34. 5USD 22 USD 81 USD 160 USD 495 USD Moz Examples of use of LCCA in Mozambique June 2012
- 35. • 10,000 latrines with 2.2 USD per latrine: investment by HH 22,000 USD in sanitation in district • New latrine 5 USD per latrine: CLTS triggers 10,000 latrines, triggers investment of 50,000 USD Moz Examples of use of LCCA in Mozambique June 2012
- 36. Discussing items • It is great to understand the current cost but going to “ideal” costs needs alternative (ways of) financing: – Thinking next to your project cycle – “selling” Sustainability packages? Moz Examples of use of LCCA in Mozambique June 2012
- 37. THANK YOU Moz Examples of use of LCCA in Mozambique June 2012