Cost-benefit analysis of urban water supply and distribution scheme

A.O Ibeje

doi:10.4314/jasem.v23i2.25

Abstract

In this study, cost-benefit analysis of Awka city water supply project was carried out considering current and projected water supply infrastructure. The result indicates benefit-cost ratios ranging from 0.3 to 0.5, meaning that there are between $1.90 and $3.36 of costs for every $1 in economic benefits. When these very low benefit-cost ratios are considered alongside the inconsistent and incomplete financial plans, it is clear that the proposed water supply project is not justified on an economic or financial basis. The study revealed that investments in the proposed water supply project would reduce government expenditure by over a period of twenty years.Keywords: water; supply; project; cost-benefit; analysis

Highlights

In the past, protection of human health and the natural environment did not seem to require economic analysis
Almost all the above mentioned schemes have all broken down completely (Emesin, 2000).The Anambra State government embarked upon redesigning and expansion of the Awka water supply infrastructure
This calls for an engineering approach in terms of benefit-cost analysis to establish the economic relevance of the expansion of Awka water supply infrastructure

Summary

Introduction

Protection of human health and the natural environment did not seem to require economic analysis. Almost all the above mentioned schemes have all broken down completely (Emesin, 2000).The Anambra State government embarked upon redesigning and expansion of the Awka water supply infrastructure. This was aimed at the ever increasing water needs of Awka city. The economic viability of the new water supply policy has become a subject of debate. This calls for an engineering approach in terms of benefit-cost analysis to establish the economic relevance of the expansion of Awka water supply infrastructure. Benefit-cost analysis is conducted and refined throughout a planning process that yields valuable insights about a projects strengths, weaknesses, and overall merit

Methods

Results

Conclusion