Economic Assessment of Sanitation Interventions in Vietnam - WSP

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Economic Assessment of Sanitation Interventions in Vietnam | Local Benefits of Improved Sanitation and HygieneTABLE 25: ESTIMATED NUMBER OF ANNUAL DEATHS FROM POOR SANITATION AND HYGIENE, VIETNAMAge groupingDiseaseUnder 5 Over 5TotalDiarrheal diseases 4,136 440 4,576ALRI 1,475 - 1,475Measles 335 - 335Malaria 631 - 631Source: Environmental Health and Child Survival. World Bank, 2007.TABLE 26: UNIT VALUES FOR THE COST OF A PREMATURE DEATH, VIETNAMDiseaseWillingness to pay using benefit transferVSL Income elasticity 1.0 at OER,transferring value of US$2 million from OECDcountriesHuman capital approachValues (VND, 2009)Low Mid (base case) HighVND287,604,600 VND575,226,600 VND1,150,453,2000-4 years VND311,233,800 VND443,073,600 VND944,698,2005-14 years VND383,670,000 VND522,974,400 VND1,041,703,20015+ years VND246,175,200 VND277,721,400 VND357,465,600Source: ESI-1, 2009.TABLE 27: AVERAGE PREMATURE MORTALITY COST PER PERSON PER YEAR, BY DISEASE AND AGE (VND, 2009)Disease 0-4 Years 5-14 Years 15+ YearsDiarrheal disease 415,512 10,266 5,220Indirect: malaria 44,892 - -Indirect: ALRI 112,230Total 572,634 10,266 5,220Source: ESI-1, 2009.40Figure 11 shows the costs averted due to sanitation andhygiene improvement in urban and rural areas as calculatedaverage values from all surveyed sites. The highestreduction in risk results from moving from unimprovedsanitation (OD) to wastewater treatment and hygieneimprovement. Similar results have been found in bothrural and urban areas. Double-vault composting, urinediverting toilets (DVCL) and biogas digesters can reducehealth risk significantly, but the value of averted costsis less. Those options are associated with some limitationssuch as a lack of gray water treatment and the potentialrisks of incomplete compost product reuse (fromDVCL), and incomplete treatment of effluent from biogasdigesters.Annex Table B7 summarizes the total costs of poor sanitationand hygiene in Vietnam, per household for the selectedurban field sites, and the costs averted. The results from therural field sites are presented in Annex Table B8. Healthcosts associated with unimproved sanitation have a highervalue in rural areas (VND4,862,000 or US$278.0 versusVND3,977,000 or US$227.4 in urban areas). In urban areas,the highest average costs are averted by moving fromunimproved sanitation to centralized wastewater management,combined with hygiene improvement interventions(VND3,206,000, or US$183.3). In rural areas, the highestaverage costs are averted by moving from unimproved sanitationto cluster wastewater management, combined withhygiene improvement interventions (VND3,251,000 orUS$185.9).Economic Assessment of Sanitation Interventions
Economic Assessment of Sanitation Interventions in Vietnam | Local Benefits of Improved Sanitation and HygieneFIGURE 10: THE RELATIVE RISK REDUCTION ASSOCIATED WITH FECAL–ORAL AND HELMINTH-RELATED DISEASES FROMDIFFERENT SANITATION IMPROVEMENT SCENARIOSSANSanitationoptionsSAN + HYGSAN + WWMSAN + WWM + HYGFecal-OralHelminths0.0 0.2 0.4 0.6 0.8 1.0Reduction levelSAN – basic on-site sanitation; WWM – wastewater management; HYG – basic hygiene interventionsFIGURE 11: HEALTH COSTS AVERTED BY IMPROVED SANITATION OPTIONSOD to Basic San +Hygiene improvementUrban Sites,averageOD to ST +Hygiene improvementOD to WWT +Hygiene improvementOD to Basic San +Hygiene improvementOD to ST +Hygiene improvementRural Sites,averageOD to WWT +Hygiene improvementOD to DVCL +Hygiene improvementOD to Biogas Dig. +Hygiene improvementHealthcare costHealth-related productivity costsPremature mortality costs0 1,000,000 2,000,000 3,000,000 4,000,000(Avoided) health cost, VND4.2 WATERInternal freshwater sources per capita in Vietnam amountto 3,840 m 3 per year (MONRE, 2010), which classifiesVietnam as a country with potential water scarcity. In termsof major water resources, there are nine major river basins.Biochemical oxygen demand (BOD) (from agriculture, industryand domestic sources) on many of these inland watersources is high. The ESI Phase 1 study estimated that, in2005, domestic sources contributed 357,500 tons of BODto inland water sources, from an estimated 2.275 milliontons of feces, 22.754 million m 3 of urine, and at least 609.8million m 3 of gray water (mainly from urban populations).www.wsp.org41
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Economic Assessment ofSanitation In
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Economic Assessment of Sanitation I
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ForewordTarget 10 of the Millennium
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Glossary of TermsBenefit-cost ratio
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AcknowledgmentsThe Economics of San
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ReferencesAcharya A, Paunio MK and
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ANNEX 1: PROGRAM APPROACH ANALYSIST
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ANNEX TABLESANNEX A. STUDY METHODST
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