Looking Beyond Capital Costs - Life Cycle Costing for Sustainable Service Delivery: A study from Andrha Pradesh, India

“Looking Beyond Capital Costs” Life Cycle Costing for Sustainable Service DeliveryA Study of Rural Sanitation in Andhra Pradesh, India ASIA REGIONAL SANITATION AND HYGIENE PRACTITIONERS WORKSHOP, Dhaka 2012 Snehalatha. M Venkataswamy.M Sirisha. D Anitha. V Busenna. P

objectives and sample Differential access to and use of sanitation services by the poor and non poor. Analysing the expenditure using the life cycle costing approach Sample : Total Sanitation: 72,000 NGP Award: Around 2000 Agroclimatic zones - 9 Districts - 22 Household surveys - 5233

Service Level MeasurementService level ISL Access ISL use Reliability Environmental protectionImproved More than All the family Rs1000+ spent Drains and dumps are one toilet members use on O&M well maintained, In toilet& infant addition solid and liquid faeces disposed re use and re cycle is in toilet practicedBasic One ISL All the members Rs 500+ spent Drains are well of family using on O&M maintained. Dumps used for solid disposalLimited/Sub Shared Some family less than Rs500 Drains are there butStandard members using spent on O&M poorly designed and the toilet maintained. Dumping area for solid waste exists but not usedNo service No ISL All Open Households did No Solid or liquid waste Defecation not spend any management amount

Household Level Service Levels No Service Limited Basic 100% 3% Access is better but needs more 12% 10% time to reach TSC goal 90% 24% 38% Usage is alarmingly low 80% 22% 33% 70% Reliability concerns lowers the% 3% usage ( fear of filling the pit, no 60%of service providers forh 50% emptying, finding replacement ofou 40% 73% hardware) 66%se 30% 59% 57%h No systems for solid/liquidol 20% disposal systemsd 10%s Even award winning villages(NGP) 0% report similar findings Acces Use Reliability Environmental Protection Source: WASHCost (India) study 2010

Access and Usage by different caste groups100 2 Broadly divided into three 8 6 13 13 categories, ‘scheduled’(SC/ST), ‘backwar90 18 1 d(BC)’ and ‘other(OC)’. 35 32 1980 18 54 Scheduled Castes (SC) and Scheduled70 3 Tribes (ST) are at the lowest social rung 3 3660 and have constitutional provision of50 reservations in educational 4 92 institutions, employment, fund 8640 73 allocation in Govt programs 65 6930 62 42 46 Lower access among Lower caste20 categories,10 Usage is low across all the groups but 0 worst in Lower caste categories OC BC SC ST OC BC SC ST Access Use Basic Limited No Service

Access and Usage by Households Access and Usage by Households based on their farm size based on their income Basic Limited No Service 100 Basic Limited No Service 12 11 15100 3 90 25 10 15 33 80 38 19 90 25 49 22 32 21 18 70 63 31 80 44 4 4 60 3 25 38 70 3 50 1 60 40 3 3 66 70 50 30 59 63 50 54 40 75 20 34 37 71 72 65 60 10 30 53 0 20 Large farm size Medium farm Size Medium farm Size Landless Landless Small farm size Large farm size Small farm size 10 0 US$415to1035 US$415to1035 >US$1035 >US$1035 < US$ 415 < US$ 415 Access Use

Why are the services low?1….2…..3…..4…..5…..6…..N…..Lets look at where/How the investments weremade?

Costs of excavation of pit,lining, slabs, superstructures and drainage pipes etc, drainage systems, solid waste disposal systems,Institutional toilets etc Costs of Capital capital expenditure Day-to-day maintenance, chemicals, cleaning Operational materials, soap for handwashing, minor repairs and minorExpenditures maintenance on indirect expenditure To restore the functionality of a system eg: replacing support a slab or emptying a septic tank or superstructure Capital etc. Expenditures maintenance on direct expenditure support Providing support to VWSCs, Cost of conducting IEC and awareness camps and training programs etc Macro level planning & policy making, support to decentralised service authorities or local government Interest rate that Government / houesholds pay on the loans they take to construct a toilet

Investments made on Life Cycle Cost Components Exclusive focus on Hard ware Relative share of Sanitation investments Percapita per year Social engineering, not a priority to 4% 0% 8%2% technical engineers0% No/Low direct support indicate lack of 86% demand generation activities CapManEx absent indicating low sustainabilityCapexHrd CapExSft ExpDsExpIDS CapManEx OpEx Lack of Institutional structures for ensuring O&M Source: WASHCost survey(2010)

What makes households go for a toilet?Personal factorsPrivacy Socio and Economic Factors Seasonal/environmentalSecurity for women and Subsidy from Govt and Other factorsAdolescent Girls Convenience during rainy Improved social status in seasons & night timesNeeds of elderly the society Pressure from Panchayats to win the NGP AwardSelf respect and shame Education levels of the family memebrs Awareness on healthto defecate openly benefits RWSS /contractor Non availabily of open Constructed fields/ difficulty in accessing the agricultural fields

Way Forward• Monitoring the expenditure using Life Cycle Cost Approach•Increasing the scale and duration of expenditure on IEC that include differentstrategies over a longer period looking beyond the capital costs.•A step wise award system that rewards sustained achievement of sanitationservices need to be designed.•Safeguards should be in place for the poorest of the poor, SC/ST anddisadvantaged households to receive the Government subsidies on priority.Involving the SCs and STs and poorest of the poor households require thesupport of a professional agency / NGOs• Urgent need for convergence and sequencing the activities of TSC • “demand generation” • “fund disbursal” • “regular monitoring” for sustained sanitation

Looking Beyond Capital Costs - Life Cycle Costing for Sustainable Service Delivery: A study from Andrha Pradesh, India

by IRC International Water and Sanitation Centre on May 14, 2012

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Looking Beyond Capital Costs - Life Cycle Costing for Sustainable Service Delivery: A study from Andrha Pradesh, India — Presentation Transcript

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