A model of costs and resources for rural and peri-urban water supply and sanitation in the 1990s

This article develops a model of cost and financing strategies for rural and peri-urban water supply and sanitation. It suggests that significant progress towards the World Summit for Children goal of universal access to water supply and sanitation can be made if a combination of strategies is adopted. On the cost side: significant cost reductions should be possible through efficiency in resource use and reduction in system management costs. On the financing side it suggests: restructuring the financing of the sector with improved efficiency and greater cost recovery in urban services; full cost recovery of operations and maintenance costs; cost-sharing through community contributions in kind such as own labour and financially in rural and peri-urban water supply for basic levels of service depending on willingness and ability to pay and full cost recovery for higher levels of service; a high degree of cost recovery in rural and peri-urban sanitation; development of institutional structures for both collection and management of revenues; development of alternate financing mechanisms such as rural credit schemes and revolving funds, adapted in specific country contexts, including required institutional mechanisms; and additional allocations from governments and external support agencies.