Hydraulic ram pumps and Sling Pumps

Key Factors for Sustainable Cost Recovery• Quantity of water is a factor when it is available in a continuous and reliable manner (withappropriate yield or pressure) and not subject to seasonal variations.• Opportunity cost of time, in terms of the value that users attach to the time they spend in collectingwater, in comparison to other activities they could be busy with.• Potential of income-generating activities. Water use can be linked to productive activities such asgarden irrigation and livestock watering.• Level of incomeCommunities with low incomes and a low ability to pay are less willing to pay for improved watersupply service, because they need their financial resources for other basic needs such as food, healthcare, education and shelter. However, various studies have shown that the correlation between abilityto pay and willingness to pay is not always direct. Indeed, it is not rare to see that poor communities inlow-income urban areas pay water bills which are much higher per m 3 than in the well-offneighbourhood of the same city. This is due to the nature of water for which there is no substitute. It isgenerally accepted that water bills should not exceed 3% to 5% of total household income. However, itis not unusual to find that local governments, agencies, public offices or influential individuals do notpay their water bills.Service factorsServices factors are linked to the nature and characteristic of the water supply system and can besubdivided as follows:• presence of alternative sources of water supply,• costs of an improved water supply system,• management efficiency of the service.Maximising willingness to pay in this case will consist in assessing how each factor could affectwillingness to pay, positively or negatively.• Presence of alternative sources of water supplyIf an existing traditional water supply, such as wells, surface water, is more convenient and supplywater free of charge, WTP for new systems could be affected. This is why it is advisable to assess theuse and acceptance of existing water supply systems, before planning improved ones.• Costs of an improved water supply systemCosts are always a concern for rural and low-income urban communities. Certain costs like operationand maintenance costs, or costs of spare parts, are directly observable and generally accepted ifbenefits are visible and constant. However, the benefits of paying off capital cost debts andreplacement costs are not immediately observable. Communities also often do not understand whythey still have to pay for water, when they see significant amounts are being saved for the future in abank account. The more these costs influence the total tariff, the higher their potential to createresistance to pay.• Management efficiency of the serviceWTP may be high in the beginning of a project, but if there is poor management and the system isinadequately run and maintained, users may refuse to pay to express their dissatisfaction and toprotest. Good accountancy and transparency are essential to create trust and confidence in acommunity managed system. Communities should be informed on a regular basis about generalexpenditure, and should see the accounts at meetings. Service breakdowns need to be taken care ofrapidly, or, at the very least, users should be kept informed about what is going on.1.3.2 Measuring WTPAs pointed out, WTP is a crucial factor for sustainable cost recovery, and project planners, advisorsand communities themselves need WTP assessment data or the ability to measure it themselves. Thereare direct and indirect methods in measuring WTP as described below. We have classified directmethods as methods which give direct information about the actual and proven willingness to pay, andindirect methods as methods of estimating or measuring potential willingness to pay.17