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Life-cycle costs approach for private piped water service delivery: a study in rural Viet Nam
Journal of Water, Sanitation & Hygiene for Development ( IF 1.6 ) Pub Date : 2020-12-01 , DOI: 10.2166/washdev.2020.037
Melita Grant 1 , Tim Foster 1 , Dao Van Dinh 2 , Juliet Willetts 1 , Georgia Davis 3
Affiliation  

Sustaining rural water services in Viet Nam requires an improved understanding of the costs and relative opportunities, especially given the government's support for private sector involvement in expanding water schemes. In particular, the life-cycle costs associated with the delivery of safe and sustainable water services in rural Viet Nam, as indeed elsewhere, are not well known, potentially compromising their long-term sustainability. To address this gap, this study assessed the cost structures of 14 water schemes in Viet Nam managed by private enterprises. Results showed that both capital and operational expenditures varied widely across the schemes assessed, reflective of the diversity of the age and characteristics of the schemes studied. Twelve of the 14 schemes generated a cash profit in the most recent calendar year; however, when taking into account depreciation, as well as historical subsidies and connection fee payments, only four of the schemes were profitable based on a 20-year design life assumption. The study complements previous research demonstrating barriers to achieving universal access when relying on user-pays systems. The results provide a useful reference point to inform business planning for enterprises, as well as policy and support mechanisms important for securing sustainable rural water supply services.



中文翻译:

私人管道供水服务的生命周期成本方法:越南农村的一项研究

维持越南的农村供水服务需要对成本和相对机会有更深入的了解,尤其是考虑到政府对私营部门参与扩大供水计划的支持。尤其是,在越南农村地区(确实在其他地方)与提供安全和可持续的水服务相关的生命周期成本尚未广为人知,有可能损害其长期可持续性。为了弥补这一差距,本研究评估了由私营企业管理的越南14个供水计划的成本结构。结果表明,在所评估的计划中,资本支出和运营支出差异很大,反映了所研究计划的年龄和特征的多样性。在14个计划中,有12个在最近的日历年产生了现金利润。然而,当考虑折旧以及历史补贴和连接费的支付时,基于20年设计寿命假设,只有四个计划是盈利的。该研究是对先前研究的补充,该研究表明了在依靠用户付费系统时实现普遍接入的障碍。研究结果为指导企业业务计划提供了有用的参考,也为确保可持续农村供水服务提供了重要的政策和支持机制。

更新日期:2020-12-27
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