Using evidence on life cycle costs to plan for achieving the SDGs in Amhara, Ethiopia

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To inform a strategic planning exercise led by woreda (district) governments in Dera, Farta and North Mecha in Amhara Region State – an initiative under the Hilton Foundation’s safe water strategy being implemented by the Millennium Water Alliance – a life-cycle costs analysis was undertaken. This involved data collection from a sample of 52 water schemes and communities in May 2018. The study identified up-to-date unit costs that are being used to make projections about the costs of achieving the Sustainable Development Goals (SDGs) in these districts. The budgets for water fell in the range of 1 to 2% of the total woreda budget. Out of the schemes sampled, 53% in North Mecha, 56% in Farta and 18% in Dera lacked any tariff payment system, and actual OpEx investments are estimated as close to zero. Where tariffs were levied they are relatively low, being estimated to fall within 0-1% of household income. There is potential that tariffs might be raised and still be affordable. A regional guideline proposes that 5 to 10% of the water office budget should be allocated for major maintenance and rehabilitation costs (CapManEx) but in the three districts this was below 4%. These findings are being used to improve budgeting for life-cycle costs through the strategic plans and to support advocacy to improve the financing of sustainable services.