Cost recovery of water services of Community-managed piped water systems

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Cost Recovery has been a major setback to sustainability of community — managed water supply systems. The assessment of the level of recovery of the O & M costs and the full cost of water services were carried out in five (5) communities in Ashanti Region. 141 sample of water consumers across the communities were selected to investigate their willingness and ability to pay for the full cost of the water service. The willingness to pay was estimated using the contingent valuation method (CVM) whereas the ability to pay was estimated based on the five percent (5%) of income rule. The study results reveal that apart from Manso-Nkwanta the other four communities (Mankranso, Wiamoase, Juaso and Kuntanase) were recovering fully their O & M costs. All the five communities were however not recovering the full costs of the water services. Even though most households (66.7% in Wiamoase, 78.6% in Manso — Nkwanta, 80.0% in Juaso and 85.7% in both Mankranso and Kuntanase) have the ability to pay, majority of the people interviewed were not willing to pay for the full cost of the water service in all the communities. They rather wanted the existing tariff to be maintained. However, to ensure the financial sustainability of the systems, tariffs must be reviewed to reflect the full cost of the water services since the affordability levels are favourable in all the communities.
A Thesis Submitted to The Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the award of the Degree of Master of Science in Water Supply and Environmental Sanitation, 2004