International Decade for Action "Water for Life" 2005-2015rss RSS SubscribeEnglish Español

Guidelines for user fees and cost recovery for urban, networked water and sanitation delivery

Guidelines for user fees and cost recovery for urban, networked water and sanitation delivery
  • African Development Bank (AfDB). October 2010
  • This document addresses the issues of urban, predominantly networked, water supply and sanitation. The main objective of these guidelines is to provide guidance to AfDB Group Task Managers and other stakeholders as well as to enhance the design and implementation of financially sustainable water sector projects and programmes. A key objective of these guidelines is to enable service providers to deliver better services to all, within the context of a protected environment, through accessing enhanced revenue and finance flows whilst acknowledging that direct full cost recovery may not be achievable in all urban areas in the near term. In this context, it is recognized that part of the process of moving towards direct cost recovery has to be through ensuring that appropriate service levels and technologies are chosen so that users obtain the services they desire and for which they are willing to pay. These guidelines stress the iterative nature of reflecting anticipated user fees against proposed service levels and the need to reconsider these levels when subsequent willingness and ability to pay indications are that such services would not be able to recover sufficient costs for sustainability. By matching service levels and technology options (service differentiation), a service provider can serve all customers at differentiated prices that correspond to customers' willingness to pay, and thus achieve both social and financial objectives.
  • Geographical coverage: Global
  • Main themes: Cost recovery, Fee collection, Sanitation, Tariffs, Urban areas, Utility services, Water supply, Water User Associations
  • Main target audience: Customer groups, Financial community, Governments, Policy makers, Project managers, Service providers, Stakeholders, Water operators
  • Main purpose: Guidance
  • Type of resource: Case studies, Checklist, Guidelines
  • Download file (940 KB)
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Published in 2015