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Meeting report - SDC Water Network

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Is this a common problem?<br />

Yes!<br />

Adequate revenue collection through tariffs is a must for<br />

sustainable water & sanitation utilities<br />

Even simple systems need funds exceeding regular (e.g.<br />

monthly) O&M costs – e.g. pump repair after 5 years<br />

Community based organisation, with a lack of (financial)<br />

management expertise and often without a strong institutional<br />

and legal status, is common for rural areas<br />

But ...<br />

5<br />

Is this a common problem? (contd.)<br />

Typically ...<br />

Attaining sufficient revenues for cost recovery is a problem in rural<br />

areas and is often not achieved immediately<br />

Existing systems have to cope with delapidated infrastructure<br />

awaiting repair or replacement<br />

In regions where full cost recovery is realistic, new infrastructure<br />

has been financed (partly) through loans which need to be paid<br />

back<br />

In all these cases the problem of cash accumulation is less of an issue.<br />

6

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