Water and Sanitation Program: Summary Report 103172 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Guy Hutton and Mili Varughese January 2016 The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, supporting poor people in obtaining affordable, safe, and sustainable access to water and sanitation services. Authors Guy Hutton and Mili Varughese Contact us For more information, please visit www.wsp.org The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, supporting poor people in obtaining affordable, safe, and sustainable access to water and sanitation services. WSP’s donors include Australia, Austria, Denmark, Finland, France, the Bill & Melinda Gates Foundation, Luxembourg, Netherlands, Norway, Sweden, Switzerland, United Kingdom, United States, and the World Bank. The findings, interpretations, and conclusions expressed herein are entirely those of the author and should not be attributed to the World Bank or its affiliated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to wsp@worldbank.org. WSP encourages the dissemination of its work and will normally grant permission promptly. © 2016 International Bank for Reconstruction and Development / World Bank © 2016 Water and Sanitation Program (WSP) www.wsp.org | www.worldbank.org/water SKU K8632 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Guy Hutton and Mili Varughese January 2016 Contents Acknowledgments...................................................................... v Abbreviations............................................................................. vii Summary Report........................................................................ 1 Introduction............................................................................... 1 Objective of This Study.............................................................. 1 Approach.................................................................................. 1 Results...................................................................................... 2 Conclusions.............................................................................. 5 Appendix A: Service Indicators and Data Sources................... 7 Appendix B: Countries Included in This Study......................... 8 Appendix C:  Variables Determining Cost Results and Their Degree of Uncertainty............................... 10 Figures 1:  Costs of Safely Managed WASH Services Exceed Basic Services by Three Times................................................ 3 2:  Wide Variation between World Regions in Capital Costs as a Proportion of Gross Regional Product.................... 4 3:  Constant Financing Needs: As Investment Needs Decline to Serve the Unserved, O&M Goes Up........................ 5 Tables 1:  Percentage of Population Coverage and Millions of People to Serve to Achieve Universal Access to Water, Sanitation, and Hygiene by 2030, 140 Countries..................... 2 2:  Estimated Annual Global Costs of Meeting SDG Targets 6.1 and 6.2.................................................................. 5 www.wsp.org iii Acknowledgments This study is a collaborative effort by the World Bank, the (UN-Water), Gerard Payen (United Nations Secretary United Nations Children’s Fund (UNICEF), the World General’s Advisory Board on Water and Sanitation), Health Organization (WHO), and a range of sector part- Federico Properzi (UN-Water), and Chris Williams (Water ners engaged in the post-2015 process revolving around the Supply and Sanitation Collaborative Council). new Sustainable Development Goal framework. The task team leader is Guy Hutton, senior economist at the Water The task team is thankful to the following sector colleagues and Sanitation Program (WSP) at the World Bank, sup- who supported the study by providing inputs on unit costs: ported by Mili Varughese, WSP operations analyst. In addi- Faustin Ekah Ekwele (UNICEF), Catarina Fonseca tion, the team consists of Eddy Perez, Jema Sy, Luis Andres, (International Water and Sanitation Centre, The and Chris Walsh. Rifat Hossain (WHO) from the WHO/ Netherlands), Orlando Hernandez (FHI 360, United UNICEF Joint Monitoring Programme for Water Supply States), Kannan Nadar (UNICEF), Pavani K. Ram and Sanitation conducted the coverage forecasts in 2015 for (University of Buffalo, United States), Tom Slaymaker the baseline. (UNICEF), Elizabeth Tilley (EAWAG, Switzerland), and Jane Wilbur (WaterAid, United Kingdom). In addition, the During the course of the study, the methods were reviewed following World Bank colleagues provided inputs on unit by Tom Slaymaker (UNICEF, formerly WaterAid), Andrew costs: Naif Mohammed Abu-Lohom, Rokeya Ahmed, Cotton (Loughborough University), Rifat Hossain (WHO), Blanca Lopez Alascio, Vandana Bhatnagar, Claire Chase, and Pete Kolsky (University of North Carolina, Chapel Yolande Coombes, Alexander V. Danilenko, Charles Hill). The draft report was reviewed by the following World Delfieux, Jozef Draaisma, Michel Duret, Kebede Faris, Bank staff (in alphabetical order): Luis Albert Andres, Juliana Menezes Garrido, Peter M. Hawkins, Shubhra Jain, Richard Damania, Marianne Fay, Kirsten Hommann, Ravikumar Joseph, Phyrum Kov, Craig P. Kullmann, William Kingdom, Joel Kolker, Libbet Loughnan, Margaret Manish Kumar, Maraita Listyasari, Esther Loening, Iain Miller, Claudia Sadoff, Sudipto Sarkar, Antonio Rodriguez Menzies, Ricardo Miranda, Deo Mulikuza Mirindi, Abdul Serrano, and Jyoti Shukla. The following sector partners Motaleb, Ngoni R. Mudege, Harriet Nattabi, Patrice provided inputs: Catarina de Albuquerque (executive chair, Joachim Nirina Rakotoniaina, Emily C. Rand, Mohammad Sanitation and Water for All), Jamie Bartram (University Farhanullah Sami, Wendy Sarasdyani, Antonio Rodriguez of North Carolina, Chapel Hill), Clarissa Brocklehurst Serrano, Deviariandy Setiawan, Upneet Singh, Susanna (consultant), Bruce Gordon (WHO), Francois Guerquin Smets, and Nguyen Quang Vinh. www.wsp.org v Abbreviations GDP Gross domestic product GP Gross product GP140 Combined gross product of 140 countries included in the study GRP Gross regional product JMP Joint Monitoring Programme for Water Supply and Sanitation (WHO/UNICEF) IRC International Water and Sanitation Centre LIC Low-income country LMIC Lower-middle-income country MDG Millennium Development Goal MICS Multiple Indicator Cluster Survey OD Open defecation ODF Open defecation–free O&M Operations and maintenance SDG Sustainable Development Goal UN United Nations UNICEF United Nations Children’s Fund WASH Water, sanitation, and hygiene WHO World Health Organization All dollar amounts are U.S. dollars unless otherwise indicated. www.wsp.org vii Summary Report Introduction WASH services1—for water supply this means an on-plot A goal dedicated to clean water and sanitation was recently water supply for every household and for sanitation it endorsed by the United Nations General Assembly as part of includes a toilet with safe management of fecal waste. As a the Sustainable Development Goals (SDGs) framework for step toward safely managed services, the costs of achieving 2015–2030 that has followed the UN’s Millennium lower-level services are also estimated because many Development Goals (MDGs) (UN General Assembly 2015). countries still have to provide basic WASH to their popula- ­ Drinking water, sanitation, and hygiene form a central part tions. Basic water supply includes an improved community of the clean water and sanitation goal (SDG 6) and are water source within a 30-minute round-trip; basic sanita- reflected especially in targets 6.1 to 6.3. They are also recog- tion includes an improved toilet; and basic hygiene includes nized for their role in reducing health risks as part of the good a hand-washing station with soap and water for every health and well-being goal (SDG 3) in targets 3.3 and 3.9. household. The costs of ending open defecation through simple, traditional, lower-cost latrines are also estimated. The means by which the SDGs will be achieved are spelled Appendix A provides further details. out in SDG 17 in 19 different targets covering financing, technology, capacity building, trade, and systemic issues. Estimates of populations to be served in rural and urban Although these issues are all key interrelated components areas by 2030 are based on coverage estimates of WASH of the delivery mechanism, each requires a detailed assess- services for 2015 (as the baseline year), taking into account ment in order for countries to understand how the ambi- population growth and internal migration. The majority of tious goals and targets laid out in the SDGs can be achieved the world’s low- and middle-income countries are included, over the next 15 years. As a pre-condition for assessing as well as selected high-income countries that have low the financing mechanisms and sources for achieving the coverage of basic WASH services. The 140 countries ­ targets, the costs of meeting the targets need to be better included represent 85 percent of the world’s population (see understood. appendix B). Current coverage figures under these defini- tions and the unserved population to be reached to achieve Objective of This Study universal coverage by 2030 appear in table 1. Coverage has This study assesses the global costs of meeting the water, sani- been projected to the year 2015 using 2013 estimates and tation, and hygiene (WASH)-related targets of SDG 6. It is trends under the new definitions (see appendix A). intended to serve as a vital input to determining the financing needs to achieve them. Two targets are assessed: (1) achieving The costs estimated are those for capital investment, pro- universal and equitable access to safe and affordable drinking gram delivery, operations, and major capital maintenance to water for all (target 6.1); and (2) achieving access to adequate sustain the life span of the infrastructure created. The costs and equitable sanitation and hygiene for all and ending open include only those of extending services to the unserved in defecation (target 6.2). Thus this study presents only a partial 2015, and exclude the costs of maintaining access for those analysis of the clean water and sanitation goal, but it can serve already served by a given service level in 2015. For the pur- as a basis for cost studies of other targets. poses of this study, for basic WASH a mix of lower-cost technology options were selected. These included commu- Approach nity wells for water supply, improved latrines for sanitation, This study estimates the costs of extending two levels of and a basin with water and soap for practicing hand ­washing. WASH services to unserved households. The proposed Higher-cost options such as piped water and sewerage were indicators for targets 6.1 and 6.2 aspire to “safely managed” included as options under safely managed services. Because the proposed indicator for target 6.2 includes safely managed sanitation services, the cost estimates of reaching the WASH-related targets cover only the first two water 1 targets (6.1 and 6.2) and not target 6.3, which focuses on wastewater. www.wsp.org 1 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report TABLE 1: Percentage of Population Coverage and Millions of People to Serve to Achieve Universal Access to Water, Sanitation, and Hygiene by 2030, 140 Countries Water Sanitation Hygiene Safely Basic Safely managed Basic water Anya Hand washing managed water sanitation sanitation Urban Rural Urban Rural Rural Urban Rural Urban Rural Urban Rural Current coverage (percent, 2015) 87 76 68 20 72 76 46 26 34 82 50 Population to serve by 2030 1,396 892 1,977 2,554 1,121 1,721 1,727 3,214 2,095 1,674 3,154 (millions) 2,278 4,531 1,121 3,448 5,309 4,828 Source: Joint Monitoring Programme, literature sources and author extrapolations for current coverage, UN Statistics Division for population growth until 2030 (medium variant) a. Simple or traditional pit latrines to end open defecation. See Annex A for definitions of ‘basic’ and ‘safely managed’. The costs of meeting the WASH-related SDG targets by in the analysis, the associated levels of uncertainty of each, 2030 will depend on the pathway for scaling up services. and indicates which variables were varied in sensitivity anal- Realistically, many households will first become open ysis. Further details of the costing methods are provided in defecation–free with an unimproved toilet facility and only ­ a longer version of this report. later upgrade to a latrine that safely isolates waste. Similarly, many households, especially in rural areas, are likely to Results receive an improved water supply from a community source The major results are presented here as three key findings. before being upgraded to a household water supply (for example, piped supply or an on-plot well). Thus the results Finding 1. Current levels of financing can cover the are presented under lower- and upper-cost scenarios, and in capital costs of achieving universal basic service for ­ the baseline 50 percent of households are assumed to drinking water, sanitation, and hygiene by 2030, pro- go straight to a higher level of service, while the remaining vided resources are targeted to the needs. 50 percent pass through unimproved sanitation or basic Extending basic WASH services to the unserved will cost water before a higher-level service is attained. $28.4 billion (range: $13.8 to $46.7 billion) per year from 2015 to 2030, or 0.10 percent (range: 0.05 to 0.16 ­ percent) Cost data were obtained through an extensive search of the of the global product (GP) of the 140 countries included 2 peer-reviewed published literature, project documents, and (GP140). This financing requirement is equivalent, in order agency reports. For larger countries, unit costs were vali- of magnitude, to the 0.12 percent of global product spent dated by in-country experts and adjusted where a discrep- needed to serve the unserved with improved water supply ancy was found with the country experience. For countries and sanitation during the MDG period. The costs by service lacking data on unit costs, cost data were extrapolated from are shown in figure 1. the most similar country with cost data, adjusting for the difference in income level (using purchasing power parities However, this relatively modest average cost as a proportion as the basis for adjustment). of global product hides wide variations across countries and income groups. Significantly greater capital spending is Because this study requires multiple input parameters, each needed in Sub-Saharan Africa, where slow progress to date of which has data weaknesses, the resulting estimates carry means capital expenditures of 0.64 percent (range: 0.29 to a high degree of uncertainty. Thus a range is presented on percent) of the gross regional product (GRP) would be 1.0 ­ all calculated costs to reflect variations in the selected needed to close the gap, and in Southern Asia, which parameters. Appendix C provides a list of the variables used requires 0.21 percent (range: 0.13 to 0.29 percent) of GRP 2 Global product is the global equivalent of the gross domestic product (GDP) at the country level. 2 Water and Sanitation Program The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Figure 1: Costs of safely managed WASH services exceed basic services by three times Annual Global Capital Costs of Different WASH Service Levels, 140 Countries 140 122.8 120 100 $, billions per year 86.9 80 77.2 60 60.9 49.3 46.7 45.6 40 37.6 32.5 31.5 28.4 29.4 20 4.2 19.5 2.6 11.6 13.8 3.6 6.9 8.6 2.0 2.7 3.6 1.6 0 End OD Water Sanitation Hygiene WASH Water Sanitation WatSan Basic service, universal access Safely managed service, universal access Upper estimate Baseline estimate Lower estimate Note: Ending open defecation, or open defecation–free, has a target year of 2025. WASH = water, sanitation, and hygiene; OD = open defecation; WatSan = water and sanitation. (shown in figure 2). Similarly, some 50 percent of the ($2.0 billion). It also includes an estimated 50 percent of ­ capital costs of basic water and sanitation and 58 percent of households first having basic water and simple pit latrines the capital costs of becoming open defecation–free (ODF) before investing in the higher-level service. Figure 1 shows needs to be spent on extending coverage to the poorest two the ranges of these numbers. wealth quintiles. Table 2 presents the costs of different pathways to extending Finding 2. The capital investments required to achieve safely managed services to achieve SDG targets 6.1 and 6.2. the water supply, sanitation, and hygiene SDGs (targets If unserved populations go straight to receiving safely man- 6.1 and 6.2) amount to about three times the current aged services, the cost would be in the range of $71 to $158 investment levels. billion per year (baseline $108 billion). If all unserved popu- The capital financing required to extend safely managed lations pass through lower-level services, the cost would be water supply and sanitation services to the unserved is $11 billion a year more, as high as 0.41 percent of GP140 approximately 0.39 percent of GP140 (range: 0.26 to (range: 0.27 to 0.58 percent). Under a baseline assumption 0.55 percent), or a little over three times the historical halfway between these two extremes, the global costs of financing trend of extending access to the unserved (0.12 achieving targets 6.1 and 6.2 are approximately $114 billion percent globally). The total capital cost of meeting targets (range: $74 to $166 billion) per year. This corresponds to 6.1 and 6.2 is $114 billion per year (range: $74 to 0.39 percent of GP140 (range: 0.26 to 0.55 percent) or $166 ­billion). This total comprises the annual costs of safe approximately three times the historic spending on extend- water ($37.6 billion), basic sanitation ($19.5 billion), and ing services to the underserved. If the target for safely man- safe fecal waste management ($49 billion), plus hygiene aged fecal waste were less ambitious and sought to reduce by www.wsp.org 3 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Figure 2: Wide variation between world regions in capital costs as a proportion of gross regional product Costs of Basic and Safely Managed Services as Percentage of Gross Regional Product (GRP) by Region, with Uncertainty Range 3.0 2.5 2.0 2.01 Cost as % of GRP 1.5 1.0 0.85 0.64 0.58 0.5 0.45 0.39 0.36 0.31 0.27 0.23 0.21 0.12 0.15 0.12 0.10 0.10 0.09 0.04 0.04 0.05 0.03 0.02 0 ia ia a ia ia ia A A C ld d ric As As As an As SS C LA pe or C Af ce rn W lo rn rn n er ve n te O he te er st as De es ut th Ea he W So or ut N So SDG targets 6.1 and 6.2 Basic WASH Upper and lower estimates of the cost Upper and lower estimates of of meeting SDG targets 6.1 and 6.2 the cost of achieving basic WASH Note: WASH = water, sanitation, and hygiene; SDG = Sustainable Development Goal; SSA = Sub-Saharan Africa; LAC = Latin America and the Caribbean; CCA = Caucasus and Central Asia. See table 2.2 for details on upper and lower values on variables varied in sensitivity analysis. Gross regional product is based on the aggregated GDP of countries in each region. An economic growth rate of 5 percent is assumed across all regions. 50 percent those unserved by treated wastewater (in line Finding 3. Sustained universal coverage requires more with target 6.3), the costs would be $92 billion (range: $63 than capital inflows: financial and institutional strength- to $131 billion) per year or 0.31 percent of GP140 (range: ening will be needed to ensure that capital investments 0.21 to 0.45 percent). Thus it will be important to strike the translate into effective service delivery. right balance between going straight to higher-level services Although capital costs reflect immediate financing needs and (which might save some costs in the longer term but will are an urgent priority, it is critical to consider the ongoing have financial and technical constraints in the shorter term) finances required to ensure the proper operation of these ser- and going through lower-level services first (which are more vices because they represent a growing financial commitment affordable and bring socioeconomic benefits). over time. As the year 2030 approaches, the costs of 4 Water and Sanitation Program The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Table 2: Estimated Annual Global Costs of Meeting SDG Targets 6.1 and 6.2 Service-level pathway and target Unit Lower Mid Upper 1. Direct service pathway to safely managed services for all $, billions per year 71.1 108.4 157.9 Proportion of GP140 0.245% 0.373% 0.510% 2. Indirect service pathway via ODF and basic water for all, $, billions per year 77.4 118.9 173.7 to safely managed services for all Proportion of GP140 0.267% 0.409% 0.565% 3. Mixture of direct and indirect pathways (50 percent each $, billions per year 74.3 113.7 165.8 of nos. 1 and 2) (baseline) Proportion of GP140 0.256% 0.391% 0.537% 4. Same as no. 3 except based on a less ambitious target $, billions per year 62.5 92.4 131.1 to reduce by 50 percent those without safely managed Proportion of GP140 0.213% 0.315% 0.447% fecal waste Note: SDG = Sustainable Development Goal; ODF = open defecation–free; GP = gross product. especially in low-income countries and Figure 3: Constant financing needs: as investment needs decline communities where even the operational to serve the unserved, O&M goes up costs of basic WASH can add up to more Time Series of Total Annual Costs to Achieve SDG Targets 6.1 and 6.2, Comparing Capital and O&M Costs: 2015–29 than 5 percent of the poverty income lev- 250 els. If operational costs cannot be covered by tariffs, policy makers and service pro- viders should be aware of the increasing 200 burden on limited grant financing and (cross-) subsidies to operate the services. $, billions per year 150 Conclusions The global costs of achieving universal 100 basic WASH by the year 2030 are achiev- able under current overall sector spend- ing. However, financing challenges 50 remain in some regions and countries where current spending is insufficient to 0 meet the SDG targets by 2030. In par- ticular, resources need to be shifted to 20 21 22 29 16 18 19 23 26 28 15 24 25 17 27 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 O&M Captial basic sanitation and hygiene in countries where the service gap is greatest. Because Note: O&M = operations and maintenance. of the shifts in population to urban areas and the commonly higher service costs in towns and cities, urban areas account for operating the new infrastructure built will exceed the annual 70 percent of the capital expenditure capital cost requirements to meet those remaining unserved requirements to achieve universal access to basic WASH. (see figure 3). In order to ensure sufficient and quality spend- However, allocations of public funds should be based not only ing on operations and maintenance, institutions and regula- on resource requirements, but also on the potential to achieve tions need to be strengthened. Tariff policies will also need to cost recovery from customers, which tends to be greater in be strengthened, but affordability will remain a critical issue, urban areas (excluding slums and poor neighborhoods). www.wsp.org 5 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Summary Report Achieving a higher level of service—called here “safely or service area opts to provide lower levels of service before managed” water and sanitation services—requires addi- making greater investments to reach a higher level of service. tional financing in the order of three times current spend- On the other hand, in the short term a lower service level ing. This value only covers extending safely managed may be the only option because of lack of investment financ- services to the currently unserved (in 2015). Although it ing. Infrastructure development should therefore be appro- will be challenging to achieve such financing volumes in priately sequenced, taking into account the public financing many lower-income countries, the significant health, ser- available, the dynamics of urban growth, and the popula- vice access time, environmental, and economic benefits tion’s demand for services before engaging financiers and that result from safe drinking water and sanitation must be providers. Where possible, economies should be sought taken into account. Additional investments can be well when combining the delivery of drinking water, sanitation, worth their cost if the appropriate hardware and software and hygiene services to reduce the service costs. are chosen. Understanding costs is an important part of planning and Because of the lower coverage of WASH services among implementing services to reach universal coverage, but lower-income groups, a significant share of public funds financing should be viewed as part of a broader strengthen- should target poor and marginalized population groups. ing of the services system that includes development of Donors should also reconsider which countries they sup- technology, private suppliers and providers, policy reform, port. Donors and public financiers alike should also institutional strengthening and regulation, and improved rethink which subpopulations and service levels they sup- monitoring and evaluation. These measures will increase the port, which requires making tough choices between efficiency of services, provide cost savings, raise demand for achieving basic WASH for the unserved versus bringing services, and stimulate the market. These aspects are largely better services to those already with basic services. covered under what has been called the “means of imple- Meanwhile, national governments should provide the mentation,” which is covered in SDG 17, but will need fur- policy environment for equitable tariff structures that ther definition of what components are prioritized. strike a balance between securing the additional financing to enable service extension and operations while enabling Because of the many uncertainties in the underlying data poorer populations to gain access to services. and methodo­ logical choices, the cost estimates reported in this study should be used with caution. The ranges on costs The ushering in of the new development framework, the provided should be used alongside the baseline numbers. Sustainable Development Goals, has been accompanied by For national policy making and resource allocation, coun- a major new focus on sustainability. Recent documentation tries are encouraged to conduct their own costing studies or and statistics have shone a light on the high levels of break- investment plans based on local unit costs, and the mix of down or nonuse of wells, latrines, and piped systems, as well technologies and program delivery mechanisms likely to be as inefficiently delivered services. Thus financing mechanisms chosen. Numbers should be provided with a geographical and management approaches should be designed and breakdown such as by subnational level and rural, urban, implemented to ensure the quality and sustainability of and peri-urban area. Countries should also conduct an new infrastructure, thereby reducing costs in the long-run. ­ in-depth analysis of the specific factors that influence costs such as securing bulk water, providing wastewater drainage ­ ifferent This report reveals the cost implications of adopting d as well as sewerage systems, and defining effective behav- levels for both water supply and sanitation. The over- service ­ ioral change programs to reach the hard to reach and s ­ ustain all costs are shown to be higher if a household, community, hygienic practices. 6 Water and Sanitation Program The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Appendix A Appendix A: Service Indicators and Data Sources Service First-level service (“basic WASH”) Higher-level service (“safely managed”) Water Percentage of population using a protected Percentage of population using safely managed drinking community source or piped water with a total water services. Corresponds to population using an collection time of 30 minutes or less for a round-trip, improved drinking water source located on the including queuing. premises, available when needed, and free of fecal and priority chemical contamination (WHO and Data available for all countries from nationally UNICEF 2012).a representative surveys (JMP). Data available on piped water for all countries from nationally representative surveys (JMP). Data adjusted downward for quality (proportion of piped sources unsafe based on published studies). Sanitation Percentage of population not practicing open Percentage of population using safely managed defecation. sanitation services. Percentage of population using a basic private Data available on sewerage for most countries from a sanitation facility. published paper (Baum, Luh, and Bartram 2013) and on fecal sludge management from on-site systems for Data available for all countries from nationally 12 countries (Peal et al. 2014). representative surveys (JMP). Hygiene Percentage of population with hand-washing facilities with soap and water at home. Data available from 42 countries from nationally representative surveys (JMP). Source: WHO and UNICEF 2013; UN-Water 2014. Note: WASH = water, sanitation, and hygiene; JMP = Joint Monitoring Programme for Water Supply and Sanitation. a. Regarding “safely managed” drinking water, the following criteria are stated either in the target or the definition proposed by JMP and its partners: (1) improved drinking water source, (2) on the premises, (3) available when needed, (4) free of fecal and priority chemical contamination. For the purposes of this study, data on on-plot water supplies were sourced from nationally representative surveys and adjusted by the expected proportion of household connections not providing safe water. Thus criteria 1, 2, and 4 are met, whereas criterion 3 is presumed. (On criterion 2, because the question does not ask whether the water source is actually in the household or on-plot, the at-home household supply counts any household that answers that the round-trip is less than five minutes.) More detailed surveys will be needed to ascertain the extent to which these are true. On criterion 4, estimates were adjusted for water quality using results from the study by the World Health Organization (WHO) on the rapid assessment of drinking water quality and from other surveys that report on the proportion of improved water sources (by type) that do not meet WHO guideline for E. coli, fluoride, and arsenic. An assessment of cost against income of different wealth groups enables assessment of affordability, which was conducted in this study (see section “Service affordability”). However, the estimates of water supply coverage presented here did not take into account affordability. Because estimates are not based on adjustments for all criteria, the estimates used for safely managed drinking water services are therefore likely to be optimistic. www.wsp.org 7 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Appendix B Appendix B: Countries Included in This Study Cross-tabulation By MDG Region and World Bank Income Level MDG region Included countries by World Bank income level Excluded countries Low income Lower-middle Income Upper-middle High Income income Latin America Haiti Bolivia, El Salvador, Argentina, Belize, Anguilla, Antigua and and the Guatemala, Guyana, Brazil, Colombia, Barbuda, Aruba, Caribbean Honduras, Costa Rica, Cuba, Barbados, British Virgin Nicaragua, Paraguay Dominica, Islands, Cayman Islands, Dominican Republic, Chile, Falkland Islands Ecuador, Grenada, (Malvinas), French Jamaica, Mexico, Guiana, Guadeloupe, Panama, Peru, St. Martinique, Montserrat, Lucia, St. Vincent Puerto Rico, St. Kitts and and the Grenadines, Nevis, The Bahamas, Suriname, Trinidad Turks and Caicos Islands, and Tobago, Uruguay, Virgin Venezuela, RB Islands (U.S.), Sub-Saharan Angola, Benin, Cameroon, Cape Mauritius, Namibia, Equatorial Mayotte, Réunion Africa Botswana, Burkina Verde, Congo, Côte Seychelles, South Guinea Faso, Burundi, Central d’Ivoire, Djibouti, Africa African Republic, Ghana, Lesotho, Chad, Comoros, Mauritania, Nigeria, Democratic Republic São Tomé and of Congo, Eritrea, Príncipe, Senegal, Ethiopia, Gabon, South Sudan, Gambia (The), Guinea, Sudan, Swaziland, Guinea-Bissau, Kenya, Zambia Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Somalia, Togo, Uganda, Tanzania, Zimbabwe Northern Africa Arab Republic of Algeria, Libya, Western Sahara (territory) Egypt, Morocco Tunisia Western Asia Syrian Arab Iraq, Jordan, Bahrain, Kuwait, Oman, Republic, Republic Lebanon, Turkey Qatar, Saudi Arabia, of Yemen United Arab Emirates, West Bank and Gaza Caucasus and Tajikistan Armenia, Georgia, Azerbaijan, Central Asia Kyrgyz Republic, Kazakhstan, Uzbekistan Turkmenistan Southern Asia Afghanistan, Bhutan, India, Islamic Republic of Bangladesh, Nepal Pakistan, Sri Lanka Iran, Maldives 8 Water and Sanitation Program The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Appendix B MDG region Included countries by World Bank income level Excluded countries Low income Lower-middle Income Upper-middle High Income income Southeastern Cambodia, Myanmar Indonesia, Lao Malaysia, Thailand, Brunei Darussalam, Asia People’s Democratic Timor-Leste Singapore Republic, Philippines, Vietnam Eastern Asia Democratic People’s Mongolia China Hong Kong SAR, China, Republic of Korea Macao SAR, China, Republic of Korea Oceania Federated States of Cook Islands, Fiji, American Samoa, French Micronesia, Kiribati, Marshall Islands, Polynesia, Guam, New Nauru, Niue, Papua Palau, Tonga, Caledonia, Northern New Guinea, Samoa, Tuvalu Mariana Islands, Tokelau Solomon Islands, Vanuatu Developed Moldova, Ukraine Albania; Belarus; Romania, Andorra, Australia, countries Bosnia and Russian Austria, Belgium, Herzegovina; Federation Bermuda, Canada, Bulgaria; Serbia; Channel Islands, Croatia, Macedonia, the Cyprus, Czech Republic, former Yugoslav Denmark, Estonia, Faroe Republic of Islands, Finland, France, Germany, Greece, Greenland, Hungary, Iceland, Ireland, Isle of Man, Israel, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, San Marino, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States Note: Classification using gross national income per capita based on World Bank Atlas method. Low-income: <$1,046; lower-middle income: $1,046–$4,125; upper-middle income, $4,125–$12,745; high income, >$12,746. www.wsp.org 9 The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene Appendix C Appendix C: Variables Determining Cost Results and Their Degree of Uncertainty Variable Data or assumption used in baseline Level of uncertaintya Underlying population and coverage statistics 1. Population growth, UN’s medium variant for rural and urban areas Moderate uncertainty, including about the 2015–30 level of urbanization 2. WASH service Indicators for each target are still under review. Low uncertainty definition Indicators proposed by the JMP (see appendix A) have been reviewed by the UN Statistics Commission. 3. Target levels Universal coverage of basic and safely managed Low uncertainty WASH services, and also reduction by half of those unserved by safe sanitation, reflect the target levels adopted by the UN General Assembly (UNGA). 4. Coverage levels in JMP estimates were projected to 2015 for basic WASH Low to moderate uncertainty for basic water 2015 and safely managed drinking water. For safe sanitation, and sanitation. Higher uncertainty for hand estimates were sourced from literature. washing, safely managed drinking water, and safely managed sanitation. 5. Unserved 15 equal annual tranches provided with services from Moderate uncertainty. The rate of progress population to 2015 to 2030. will vary by country. be served 6. Technologies used One lower and one higher technology assumed for High uncertainty. Cost range estimated to provide services basic WASH and for safe sanitation, with 50 percent based on 100 percent of population using of the unserved population assumed to receive each low-cost technology to 100 percent one (see appendix D). population of using high-cost technology. Cost and economic assumptions (see appendix D for further details) 7. Costs included Capital costs, software costs, capital maintenance Low to moderate uncertainty. costs, and operating costs. These costs cover major cost categories, but exclude financing costs (interest charges) and may underestimate the costs of behavior change and of accessing and safeguarding bulk water. 8. Unit cost data Cost data available mainly for capital costs for all Moderate uncertainty. No range provided services and for operating costs for safe water. because of lack of data on what the range Assumptions used for capital maintenance costs and might be per country. for operating costs of basic WASH. 9. Life span of Technology replaced after 8 years (latrines), 10 years Moderate uncertainty. These life spans are technology (dug wells), and 20 years (septic tank, boreholes, justified by the inclusion of capital treatment plants, and pipes). maintenance costs. 10. Updating pre-2015 First, update costs to 2015 in local currency using Moderate uncertainty as costs of services cost data to 2015 inflation rate. Second, convert 2015 costs in local may increase at different rate from inflation currency to U.S. dollars. rate. 11. Discounting of Discount rate of 5 percent chosen for baseline results Moderate uncertainty. Range: 3 to 8 percent future costs because it falls in the middle of range commonly used. used in sensitivity analysis. 12. Extrapolation of Transfer costs using the U.S. dollar as the common High uncertainty. Alternative method of unit costs for currency, adjusting for difference in the gross domestic adjustment uses differences between countries with product (GDP) per capita at purchasing power parity countries in absolute U.S. dollar values of no data values. This is the preferred method because the major GDP per capita. components of WASH services are not imported (labor and locally made materials). Note: WASH = water, sanitation, and hygiene; JMP = Joint Monitoring Programme for Water Supply and Sanitation. a. Parameters that varied in sensitivity analysis appear in boldface. 10 Water and Sanitation Program The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene References References Baum, R., J. Luh, and J. Bartram. 2013. “Sanitation: Sanitation and Hygiene for Development 4 (4): A Global Estimate of Sewerage Connections without 563–75. Treatment and the Resulting Impact on MDG UN General Assembly. 2015. Transforming Our World: Progress.” Environmental Science and Technology 47 (4): The 2030 Agenda for Sustainable Development. 1994–2000. Resolution adopted by the General Assembly on Fonseca, C., R. Franceys, C. Batchelor, P. McIntyre, 25 September 2015. A/RES/70/1. New York: A. Klutse, K. Komives, et al. 2010. Life-cycle Costs United Nations. Approach. Glossary and Cost Components. WASHCost UNICEF and WHO (UN Children’s Fund and World Briefing Note 1. The Hague: International Water and Health Organization). 2015. Progress on Drinking Sanitation Centre. Water and Sanitation: 2015 Update and MDG Hutton, G., L. Haller. Evaluation of the Non-Health Assessment. WHO/UNICEF Joint Monitoring Costs and Benefits of Water and Sanitation Programme for Water Supply and Sanitation. Improvements at Global Level. Report undertaken for Geneva: WHO. the Evidence and Information for Policy Department, UN-Water. 2014. A Post-2015 Global Goal for Water: in collaboration with the Department for Protection of Synthesis of Key Findings and Recommendations. the Human Environment, World Health Organization. New York: United Nations. WHO/SDE/WSH/04.04, 2004. WHO and UNICEF (World Health Organization and Hutton, G. Global Costs and Benefits of Drinking-Water UN Children’s Fund). 2012. Rapid Assessment of Supply and Sanitation Interventions to Reach the MDG Drinking-Water Quality (RADWQ): A Handbook for Target and Universal Coverage. 2012. Report No. Implementation. Geneva: WHO; New York: UNICEF. WHO/HSE/WSH/12.01. Geneva: World Health Organization. ______. Post 2015 WASH Targets and Indicators. 2013. WHO/UNICEF Joint Monitoring Programme for Peal, A., B. Evans, I. Blackett, P. Hawkins, and Water Supply and Sanitation. Geneva: WHO; C. Heymans. 2014. “Fecal Sludge Management: A New York: UNICEF. In collaboration with the Water Comparative Analysis of 12 Cities.” Journal of Water, Supply and Sanitation Collaborative Council, Geneva. www.wsp.org 11 The original had problem with text extraction. pdftotext Unable to extract text.