Abstract
Abstract Sebeta town is one of the rapidly growing towns in Ethiopia. Its closeness to Addis Ababa city has attracted industrial, urban development, and population growth. This development has created problems with drinking water shortages in the community. This study aimed at determining the household's willingness to pay (WTP) amount toward improving water supply services and analyzing the influencing factors of WTP. A contingent valuation (CV) technique was applied in quantifying the households' WTP and the influencing factors toward the program. The field observations, key informant interviews, and household questionnaire interviews from 250 respondents out of the targeted 280 were employed in collecting field data. Results from CV revealed that 66% of the households were WTP toward improving the water supply services beyond their current monthly water bills. Households were WTP about 20 Ethiopian Birr (ETB) above the average current water bill of 161 ETB. The binary logistic model results statistically demonstrated that independent variables of gender, age, marital status, education level, years in Sebeta, and average monthly income were significantly influencing the household's WTP at p = 0.01 and 0.05. This study provides vital hints for further research and baseline information for local administration and communities about the water supply in the area and holistic appropriation of water tariffs in line with government policy.
Highlights
Access to safe, affordable, and reliable drinking water and sanitation services are fundamental human rights (UNESCO )
The construction or rehabilitation of water supply systems plus the operation and maintenance activities of those systems require an enormous sum of money from the institutions
The report further disclosed that the average domestic water supply was 20 l/capita/day, which was below the minimum requirement of 80 l/capita/day for towns under category 2 according to GTP-2 (MoWIE ; Temesgen )
Summary
Affordable, and reliable drinking water and sanitation services are fundamental human rights (UNESCO ). It was estimated that water-related investments globally require financing range from $6.7 trillions by 2030 to $22.6 trillion by 2050 (Winpenny ; UN ), to construct new infrastructures and operate and maintain existing facilities. Failure to improve water resource management could diminish national growth rates by as much as 6% of Global Domestic Product (GDP) by 2050 (World Bank ; UN ). In Ethiopia, about 93% of the urban population just have access to the minimum water requirement because the distribution systems in various towns do not function properly due to inadequate arrangements for maintenance and repair (Seifu et al ). The construction or rehabilitation of water supply systems plus the operation and maintenance activities of those systems require an enormous sum of money from the institutions
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