Hydraulic ram pumps and Sling Pumps

Key Factors for Sustainable Cost RecoveryTable 3:Overview of various cost analysis toolsCost analysis toolsCost recordingExpenditure is recorded in books. It is advisable to group costs by category, asthis makes it easier to analyse, when monitoring expenses or unusualincreases.Cost comparisonsCost can be compared by time, across similar alternative projects or by specificcost item, such as equipment, lifecycle of materials, construction costs etc.Cost-benefit analysisThis is expressed as a ratio of costs (in monetary terms) versus benefits (alsoquantified in monetary terms). Benefits such as health and socialimprovements are difficult to quantify in monetary terms.Cost-effectiveness analysisThis Is expressed as the ratio of the costs (quantified in monetary terms)versus effects (not quantified in monetary terms). The definition ofeffectiveness and effects can be difficult and is often subjective.Cost utility analysisThis is expressed as the ratio of costs versus outcomes (not necessarily inmonetary terms), while the outcomes are ranked. This is similar to theperceived cost-benefit analysis (ratio) where groups of users, often divided intomen and women, rich/poor, different ethnic groups, identify the level of benefitsand costs for themselves from a system or project. From their own perspective,they answer the question: Are the benefits greater than costs?Least cost analysisEstimates the costs of alternative schemes or different possible outcomes.Marginal cost analysisLooks at the cost of additional outputs or inputs in a project or programme(discounting the cost of what has already been done). A typical question is:What will be the additional output of this additional input?Sensitivity analysisEstimates the expected outcome of the project according to different scenarios.Application in the projectcycleMonitoringPlanningMonitoring EvaluationPlanning EvaluationImplementation MonitoringEvaluationPlanning EvaluationPlanningPlanningPlanning1.3 Willingness to payWillingness to pay (WTP) is an expression of the demand for a service, and it is a strong pre-requisitefor cost recovery because it is a measure of user satisfaction of a service and of the desire of users tocontribute to its functioning.This desire is normally associated with the users’ willingness to contribute in monetary terms, but itcan also be in kind. Some users cannot contribute cash for investment, but can for example providevoluntary labour for trench digging, transport, pipe laying, and can provide local materials, such asgravel and sand. This approach can be seen also in their contribution to maintenance activities throughfree labour. There is no systematic correlation between willingness and ability to pay. In numerousurban and even rural areas, the poor are paying much more for their water than the water costs paid bybetter-off communities.It is therefore necessary to determine the conditions affecting demand and willingness to pay. Directtechniques for the estimation of WTP are based on the observation of what people actually do in orderto ensure water provision, including how much money they have to pay for it. Indirect ways drawconclusions from users’ responses to hypothetical questions about their willingness to pay for waterand sanitation (W&S) services. WTP studies are carried out to understand what level of W&S servicespeople want, why and how much they are willing to pay for it. If people would be happy to pay morefor a better service, or are not willing to pay because the existing service does not match theirexpectations, this information can be used to find ways to improve the service and increase revenue.Another way to improve willingness to pay is to improve relationships between consumers and theorganisation managing the water supply service. Increased mutual trust and confidence that the servicewill be delivered as promised can be achieved through better information and communication. This15