Costs of Meeting SDG 6.1 and 6.2 Targets on Household Water Supply, Sanitation and Hygiene

The SDGs Context: Goals & Targets

• SDG 6 Framework, with six targets

• Drinking-water, sanitation and hygiene (WASH) explicitly included in Targets 6.1 – 6.3 and implicit in Targets 6.4 – 6.6:

6.1. Achieve universal and equitable access to safe and affordable drinking water for all.

6.2. Achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situation.

6.3. Improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and increasing recycling and safe reuse by [x] per cent globally.

6.4. Substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity

6.5. Implement integrated water resources management at all levels, including through transboundary cooperation as appropriate

6.6. Protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes

• Water-related targets within other Goals (health, energy, urban, etc.)

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JMP

GEMI

SDG: Means of Implementation

• Mobilize Member States and international community to achieve SDGs

• For water, specific MOI targets:

6a. Expand international cooperation and capacity-building support to developing countries in

water- and sanitation-related activities and programmes, including water harvesting,

desalination, water efficiency, wastewater treatment, recycling and reuse technologies

6b. Support and strengthen the participation of local communities in improving water and

sanitation management

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6.B

Local

participation

GLAAS

The Post-2015 Context: SDG 17

• Financing under SDG 17 on MOI and Global Partnerships:

17.1 Strengthen domestic resource mobilization, including through international support

to developing countries, to improve domestic capacity for tax and other revenue

collection

17.2 Developed countries to implement fully their official development assistance

commitments, including to provide 0.7 per cent of gross national income in official

development assistance to developing countries, of which 0.15 to 0.20 per cent should

be provided to least developed countries

17.3 Mobilize additional financial resources for developing countries from multiple

sources

17.4 Assist developing countries in attaining long-term debt sustainability through

coordinated policies aimed at fostering debt financing, debt relief and debt restructuring,

as appropriate, and address the external debt of highly indebted poor countries to

reduce debt distress

17.5 Adopt and implement investment promotion regimes for least developed countries4

Overall costing approach

• Costs estimated for extending and sustaining WASH coverage for the

unserved, covering 140 countries presented in 10 MDG regions.

• Model ‘gives’ access to 15 equal segments of unserved population over

2015-2030.

• Current and potential future financing options assessed to recommend how

the costs might be financed.

• Central to achieving the WASH targets are:

More technical issues of sustainability, quality, affordability and behavior change

More political issues that provide enabling environment such as political will, legal

framework, transparency and accountability

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WASH service definitions & indicators

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Service Lower level service Safe or advanced service

Water Percentage of population using a

protected community source or

piped water with a total collection

time of 30 minutes or less for a

roundtrip including queuing.

Percentage of population using an

improved drinking water source on

premises accessible to all members of the

household, which delivers sufficient water to meet

domestic needs, was functional > 12 days in the

last 2 weeks, meets WHO guideline values for

E.coli, fluoride and arsenic, and is subject to a

verified risk management plan.

Sanitation • Percentage of population not

practicing open defecation.

• Percentage of population using

a basic, private sanitation

facility.

Percentage of population using a

‘safely managed’ sanitation service.

Hygiene Percentage of population with

handwashing facilities with soap

and water at home

-

Current service coverage (2015)

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MDG Region Water Sanitation Hygiene

Basic Safe ODF Adequate Safe Handwashing

Urban Rural Urban Rural Rural Urban Rural Urban Rural Urban Rural

LAC 95% 83% 88% 48% 88% 87% 64% 35% 34% 92% 85%

SSA 60% 42% 25% 2% 66% 40% 23% 33% 34% 40% 16%

Northern Africa 94% 88% 82% 48% 95% 94% 87% 50% 34% 92% 88%

Western Asia 96% 79% 84% 54% 100% 94% 76% 41% 34% 97% 92%

CCA 93% 81% 75% 20% 100% 95% 94% 35% 34% 92% 77%

South Asia 85% 83% 48% 9% 51% 65% 33% 6% 34% 85% 49%

South-East Asia 70% 81% 46% 12% 84% 81% 65% 37% 34% 93% 79%

Eastern Asia 98% 87% 90% 45% 98% 86% 64% 24% 34% 83% 44%

Oceania 88% 87% 69% 22% 76% 84% 56% 35% 34% 92% 88%

Developed 98% 95% 90% 54% 100% 86% 79% 21% 34% 99% 97%

Total 87% 76% 68% 20% 72% 76% 46% 26% 34% 82% 50%

Population to be served from 2015 to 2030

• Population growth in 15 years

1,024 million urban areas

20 million rural areas

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MDG Region Basic Water -

Universal

Safe Water – reduce

by 50%

Safe Water -

Universal

Urban Rural Total Urban Rural Total Urban Rural Total

LAC 114 19 133 112 32 145 148 61 209

SSA 417 521 939 302 385 687 550 767 1,317

Northern Africa 34 15 49 35 26 60 46 47 93

Western Asia 44 19 63 43 19 63 57 34 92

CCA 11 12 23 11 21 32 17 41 58

South Asia 345 239 584 345 555 900 576 1,103 1,679

SE Asia 189 65 254 155 142 298 263 281 544

Eastern Asia 240 0 240 258 78 335 308 195 503

Oceania 0 0 1 0 1 1 0 1 2

Developed 2 0 2 7 13 20 12 24 36

World 1,396 892 2,287 1,268 1,271 2,540 1,977 2,554 4,531

Water Supply

Population to be served from 2015 to 2030

• Population growth in 15 years

1,024 million urban areas

20 million rural areas

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Sanitation

MDG Region ODF Basic Sanitation -

Universal

Safe Sanitation –

reduce by 50%

Safe Sanitation -

Universal

Rural Urban Rural Total Urban Rural Total Urban Rural Total

LAC 18 157 40 197 215 37 252 400 76 476

SSA 395 493 639 1132 301 314 615 520 572 1,092

N Africa 10 34 16 50 46 29 75 78 57 135

W Asia 7 45 20 65 60 23 83 106 44 149

CCA 4 10 6 16 17 18 35 32 34 66

South Asia 629 473 832 1305 426 415 840 836 815 1,651

SE Asia 59 159 117 276 162 102 263 286 207 493

Eastern Asia 0 329 50 379 440 97 537 826 251 1,077

Oceania 1 0 0 0 0 1 1 1 1 2

Developed 0 20 7 27 65 17 81 130 37 168

World 1,121 1,721 1,727 3,448 1,733 1,051 2,784 3,214 2,095 5,309

Population to be served from 2015 to 2030

• Population growth in 15 years

1,024 million urban areas

20 million rural areas

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Hygiene

MDG Region Basic Hygiene

Urban Rural Total

LAC 128 118 246

SSA 490 780 1270

N Africa 36 84 120

Western Asia 42 64 106

CCA 11 50 61

South Asia 451 1,210 1661

SE Asia 124 319 443

Eastern Asia 390 464 854

Oceania 0 2 2

Developed 1 63 64

World 1,674 3,154 4,828

Progressive elimination of inequalities in access in this study focuses on accelerated access for those with lower current access by rural/urban location and by wealth quintile. Other important forms of discrim-inationexist that could not be included in this study

Technology choice

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Service Baseline Technology Assumption Sensitivity Analysis

Low Cost High Cost

Basic water • 50% protected community

borehole/tubewell

• 50% protected dug well

100% protected dug

well

100% protected

community borehole or

tubewell

Safe water • Piped water supply on plot Increase bulk water

supply costs

Open defecation

free - rural

• Simple or traditional latrines - -

Adequate sanitation

- urban

• 50% flush toilet to septic tank

• 50% any type of pit latrine

100% any type of pit

latrine

100% flush toilet to

septic tank

Adequate sanitation

- rural

• 50% pour-flush pit latrine

• 50% dry pit latrine

100% dry pit latrine 100% pour-flush pit

latrine

Safe sanitation • 50% sewerage with treatment

• 50% FSM with treatment

100% FSM with

treatment

100% sewerage with

treatment

Handwashing • 100% with mix of handwashing basin

options (variable by region)

Costing methodology

• Cost components

Capital investment and software

Capital maintenance

Operations

• Unit cost data

Global database

Unit costs of each technology updated to 2015 prices

Cost data gaps: extrapolated costs from most similar country,

adjusting for purchasing power parity

• Costs estimated in 2015 prices

Future costs discounted using 5% discount rate

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Costing assumptions for missing data

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Service Duration

of CapEx

Time after

which

CapManEx

Software (%

of

hardware)

Capital

maintenance (as

% of hardware)

Operating

costs (as %

hardware)

Water supply

Safe household piped 20 years 10 years 10% 30% NR

Basic household piped 20 years 10 years 5% 30% NR

Borehole or tubewell 20 years 10 years 5% 30%

Dug well 10 years 5 years 5% 30% NR

Sanitation

Septic tank, sewerage,

sewage/sludge treatment

20 years 10 years 10% 30% NR

Urban basic pit latrine 8 years 4 years 10% 30% 5%

Rural basic pit latrine 8 years 4 years 20% 30% 5%

Rural traditional pit

latrine (for ODF)

2 years 1 year 10% of basic

pit latrine

30% 5% of basic

pit latrine

Hygiene

Handwashing 1-5 years Half

lifespan

Estimated

separately

30% NR

HENCE: Uncertainty in several parameters leads to

considerable uncertainty in overall estimates

Global Costing study

GLOBAL & REGIONAL RESULTS

Annual Global Capital Costs of Different WASH Service Levels, 140 Countries

Source: Hutton G, Varughese M (2016). Costs of meeting the 2030 Sustainable Development Agenda targets on drinking water, sanitation and hygiene. World

Bank, Water and Sanitation Program: Washington DC.

Costs of Basic and Safely Managed Services as Percentage of Gross Regional Product (GRP) by Region, with Uncertainty

RangeNote: Approximate spending on increasing coverage 2000-2015 = 0.12% of gross world

product

Annual Capital Costs of Meeting SDG Targets 6.1 and 6.2 by MDG Region with Urban-Rural Breakdown

Source: Hutton G, Varughese M (2016). Costs of meeting the 2030 Sustainable Development Agenda targets on drinking water,

sanitation and hygiene. World Bank, Water and Sanitation Program: Washington DC.

Capital Costs: Globally, Urban Dominates Rural

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End OD Water Sanitation Hygiene WASH Water Sanitation WatSan Meeting

(by 2025) Basic Service - Universal Access Safe Service - Universal Access Targets 6.1-3

Urban vs. Rural Comparison

Urban Rural

Financing Feasibility: Proportion of GDP

Costs of universal access basic WASH in line with historic spending

Continued growth rates in developing economies brings costs of targets

6.1-6.3 of 0.28% GDP within 2.5 times historical spending on service

extension (range 0.23% to 0.34%)

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0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

HistoricSpending

0% 1% 2% 3% 4% 5%

2000-2015 Global spending requirement under different GDP growthscenarios

Cap

ital

sp

end

ing

nee

ds

as %

of

Gro

ss P

rod

uct Basic WASH Safe WatSan Targets 6.1-6.3

Growing Operating Costs of New Infrastructure

• Tariff policy will be key to avoid massive additional financial

burden falling on public budget

• Mechanisms for targeting subsidies to poor groups will be

critical to ensure affordability

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NOT FOR CITATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Capital O&M

Global Costing study

Conclusions and recommendations

Concluding remarks

• Globally, basic WASH access is affordable at historic funding levels

Achieving ODF should not be a financial issue

Greater targeting needed to reach poorest countries, poorest population pockets

and bring about behavior change

• Meeting the SDG WASH targets will require growth in funding

But will bring massive economic and social benefits

The financing sources are available, both private investment and growing

economies and tax revenues

• Hence a major challenge remains in the policy and institutional

developments needed to reach the poor, ensure cost recovery on

O&M (and investment) and regulate quality and coverage of services

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Financing Options to Explore

• Increased financing, with greater attention on mobiliz-ation of the

private sector and domestic public finances

• Greater harmonization and consolidation of funds such as

through pooled financing mechanisms

• Greater service efficiency, through improved planning,

implementation and M&E, and through competition

• Improved effectiveness and distribution of public funds,

through better targeting of poor people, spending on raising demand

and leveraging the private sector

• Equitable tariff structure, one which enables expansion to

unserved areas while protecting the poor

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Recommendations

• Target policies and financing at poor and marginalized populations

Donors rethink which countries to provide support to

Shift subsidies away from the better-off

• For new infrastructure, consider financing mechanism and

management model beforehand for sustainability

Sequencing of infrastructure to avoid unnecessary re-investments

Seek economies when combining W, S and H services.

• More accurate country-level assessments, demanded and led by

responsible line ministries

Cost estimation of different service options and levels

Financing strategy and investment plan to reach universal access

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Thank you