Transcript Slide 1

Benefit Assessment in MUS
Guide for Groupwork and
Discussion
Benefit definition
• Service level (point on water ladder) and
not infrastructure or technology choice
– Quantity
– Quality
– Access
– Reliability
– Status (JMP-defined coverage)
Benefit categories
Overall purpose
• Environment, optimize water
use (e.g. seasonal hydrology)
• Community resilience
• Sustainability (multiple
meaning)
• Equity (gender, poor,
marginalized people)
Achieved through
• Improved policy and
implementation (transparent
intersectoral & multiple
stakeholder coordination and
participation)
Measurable categories
• Crop production
• Fish production
• Livestock
• Livelihoods, jobs created
• Health (disease)
• Nutrition
• Power generation
• Domestic & industry
Benefit is scenario-dependent
(D+ or I+ or Community MUS)
Measured by social group,
income level, type of user
Outputs of CBA
(economic analysis)
• Cost-benefit ratio (CBR), Internal Rate of Return (IRR),
Net Present Value (NPV), Payback Period
– Financial versus non-financial versus economic
– Household or broader societal
• Cost-effectiveness analysis??
• Other relevant economic indicators
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$ benefit per additional litre per capita per day
Additional income per family per year
Economies of scale (present or not?)
Process indicators, such as productivity
• Financing: CBA helps define who pays
– Share of water, share of benefit, share of cost
For discussion
• What type of economic analysis to conduct?
• What is the comparator in economic analysis?
• How will a better understanding of the benefits
facilitate practical decision making?
• Which benefits to include and measure?
– Which benefits have the most traction with policy
makers (e.g. National goals or MDGs)?
– Design and survey tools required for the task (e.g.
determine causality of effect)
– Valuation methodologies
• Validating the benefits
– Compare actual impacts with ex ante