applying the life-cycle costs approach in uganda for improved financial planning and budgeting

Applying the Life Cycle Cost Approach in Uganda for improved financial planning

and budgeting

9th of April 2013

By Lucrezia Biteete, Fontes, and René van Lieshout, IRC Uganda

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Overview

LCCA in Uganda, Biteete and Lieshout

2013

Context in Uganda Introducing the

LCCA to the Ugandan WASH sector

Information scan – findings

Conclusions and next steps

Kabarole cost analysis – preliminary findings


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Context in Uganda

Population growth 3.6%

Proliferation of districts

Water scarce areas

2013

Figure 1: Stagnation in coverage, functionality and budget in rural water in Uganda. (Koestler and van Lieshout 2012)


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Context in Uganda

2013

Figure 2: Functionality of rural water sources and rehabilitation fund expenditures since 2003/04 (MWE 2012)


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Introducing the LCCA to the Ugandan WASH sector Stakeholder meeting in

December 2011 with training on LCCA at RWSN forum

Information Scan, April to July 2012

Expenditure mapping, April to July 2012

Integration of LCCA methodology in the national monitoring framework

Cost data analysis at district level, February to May 2013

2013


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Information Scan - Methodology Understand the current

cost-related tools used for planning and decision making

Map expenditures and financial flows in the sector

Interviews with 23 stakeholders

Study of documents Cost matrices Stakeholder maps

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Information Scan - Findings

2013

Support to Water

Committees

(refresher training,

follow up)

NGOs International NGOs, Donor Funds, Multilateral agencies/UNICEF

Some NGOs can follow up over time, and sometimes pay for follow up after end of project period through cross-financing from new projects in the same area. Can be integrated in sanitation/hygiene/education programme

Umbrella JPF, MoFPED, Donor Funds

Only to WSSBs of piped schemes. Quarterly visits to all members, support financial management,

Sub County

DLG Through community development officer (CDO)

DWO MoFPED up to 11 % of CG is for software (both for pre and post construction). This is the main role of DWO but often limtied in practice due to lack of resources for transport


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Information Scan - Conclusions

Costs change over time

Continuous exercise External and internal

factors Service Delivery

Models Link to Service Levels Next step – cost

analysis at district level - Kabarole

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Kabarole Cost Analysis - Findings

2013

-

1 000 000 000

2 000 000 000

3 000 000 000

4 000 000 000

5 000 000 000

6 000 000 000

7 000 000 000

2009/10 2010/11 2011/12

ExpIS

ExpDS

CapManEx

OpEx

CapEx


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2013

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

Borehole Spring Shallow Well

ExpIS

ExpDS

CapManEx (per year)

OpEx


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2013

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

GFS Pumped

ExpIS

ExpDS

CapManEx (per year)

OpEx


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2013

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Borehole Spring GFS Well Pumped scheme

ExpIS

ExpDS

CapManEx (per year)

OpEx


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2013

WASHCost Benchmark

Kabarole

Borehole with handpump 20-61 12,8Piped schemes* 30-131 85,8

Borehole with handpump 3-6 1,6Piped schemes* 3-15 0,6

Comparison with benchmarks [USD per person, per year]

CapEx [per capita]

Recurrent [per capita per year]

WASHCost benchmark Kabarole WASHCost benchmark KabaroleOpEx 0,5-1 0,02 0,5-5 0,2CapManEx (per year) 1,5-2 0,4 1,5-7 0,2ExpDS 1-3 0,5 1-3 0,2ExpIS - 0,7 0,01Total recurrent excl ExpIS 3-6 1,0 3-15 0,5Total recurrent 3-6 1,6 3-15 0,6

Borehole and handpump Piped schemes*Recurrent costs, USD per person, per year


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2013

Total Life-Cycle Cost per year (UGX)

Poor preventive maintenance

Ideal maintenance

Estimate for Kabarole

Borehole 6 590 500 2 411 209 3 162 798 Protected Spring 1 929 644 1 159 118 1 228 390 GFS 132 992 818 25 639 447 42 382 834 Shallow Well 2 934 941 1 392 601 1 531 910

Cost per Water-Person-Year (UGX)

Poor preventive maintenance

Ideal maintenance

Estimate for Kabarole

Borehole 4 394 402 1 054 Protected Spring 1 930 290 614 Shallow Well 1 957 232 511


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Thank you!

2013

Documents available Information Scan Briefing Note Kabarole Cost Analysis

Contact details: [email protected]

applying the life-cycle costs approach in uganda for improved financial planning and budgeting

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