Cost Recovery in Water Services

Abstract

The objective of the study was to find out to what extent water charges could be used in the developing world. This paper presents a cost recovery model primarily for water supply and discusses its implications for sewerage services. The model has four key elements: benefits and costs, predictability of consumer contributions, water tariffs, and fee collection and financial management. The study shows that water charges are a necessity in developing countries, as in the developed world, and consumers are more able and willing to pay than has been thought. Adequate sewerage and sewage charges should be introduced universally.