Economic Assessment of Sanitation Interventions in Vietnam - WSP

X. RecommendationsThe economic performance of sanitation and hygiene projectsis favorable throughout the country. The actual performanceof sanitation programs is often lower than idealperformance, as indicated by the non-use of toilets andcontinued pollution of the environment. This indicatesthat attention must be given to the determinants of nonperformance.The study findings emphasize the importance of choosingthe right sanitation option in terms financial sustainability,when moving up the sanitation ladder and upgrading existingsystems. They also indicate the need to consider other,non-quantified benefits not included in the benefit-costratios. Recommendations from the study are:Recommendation 1: Intensify efforts to increase accessto basic improved sanitation in rural areas and improvedwastewater management in urban areasDespite the progress of the country in meeting the MDGtargets for sanitation, a sizeable number of rural peoplestill use unimproved sanitation facilities, and only a smallproportion of urban wastewater is treated adequately. Asa result, the estimated economic burden of poor sanitationin the country remains high. This suggests a need formore investment in improved sanitation facilities. This investmentis essential to reducing the costs that poor sanitationimposes on health, water for drinking and other uses,tourism, business operations, and the overall quality of life.This may also stimulate economic activity in markets thatprovide inputs to and outputs from (reuse) the sanitationsector. The sources of investment funds for the sanitationand hygiene sector should be strengthened and diversified,while interventions by the public sector and developmentbanks should be targeted to maximize developmental benefits,especially aiming to increase access and uptake amongpoor and vulnerable households.Recommendation 2: Sanitation planning should carefullyconsider the performance of alternative technologyoptions and delivery approaches to maximize programefficiencyEarly sanitation planning would avoid inefficient investmentin sanitation systems that are not financially sustainableor that are inadequate for a population’s needs and laterrequire upgrading. Broader economic costs and benefitsand direct financial requirements and impacts should bothbe considered as part of technology and program deliveryselection. Technology selection and project design shouldtake into account life-cycle costs, future increases in theprice of construction, the specific conditions of target sitesand the related opportunities and limitations of sanitationprograms. Decision makers at all levels should be encouragedto select those technologies and designs that not onlysuccessfully capture the financial and economic benefits ofsanitation, but also at an affordable cost that is appropriateto the specific context.Based on the results of this and other studies, guidelinesshould be drawn up for technology options and programdelivery approaches for different geographical, demographicand socio-economic settings in Vietnam. Local authoritycapacity and skill in planning, design and contractingshould be built and mobilized to enable improved planningat decentralized level. To increase program efficiency,lower-cost and standard designs that incorporate improvedenvironmental features should be made available to projectdesign teams.Furthermore, Vietnamese environmental standards are stillnot fully developed to enable the planning of sustainable sanitationoptions. There are still large gaps and contradictionsamong effluent standards and water resource classification.This complexity leads to the selection of inefficient technol-108Economic Assessment of Sanitation Interventions