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Multiple Use Water Services for the Poor

Mary Renwick, Winrock InternationalWorld Water Forum, Session 2.4.1

Istanbul, TurkeyMarch 2009

Funding provided by the Bill and Melinda Gates FoundationCollaborators: IRC and IWMI

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Key Findings: Strategic investments in multiple-use services can cost-effectively maximize poverty impacts of water services while enhancing sustainability

Potential clients: over 1 billion people

Where: rural South Asia and sub-Saharan Africa

How: New domestic multiple use servicesUpgrading service levels within existing domestic and irrigation systems

Global MUS Assessment

Study Goal: inform prospective water sector investments assess the potential of multiple-use water services to sustainably meet the water needs of the poor

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Multiple Use Services: Background

Photo Credit: Ronald Loeve

Photo credit: Ronald Rospigliosi

Photo credit: Kande Matungulu

Photo credit: Menno Houtstra

Photo credit: Charles Batchelor

Photo Credit: IRC

Home Gardens Livestock Small-scale Enterprises

Domestic uses of Irrigation Systems

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Study Goal: to help inform prospective investments in the water sector by assessing the potential of multiple-use water services to sustainably meet the water needs of the poor.

Question 1: What are the incremental costs and benefits of multiple-use approaches over single-use approaches?

Question 2: Where do multiple-use approaches apply and who are the main beneficiaries?

Identify potential opportunity areas

Assess incremental costs, benefits and poverty impacts

Evaluate the potential market for multiple use water services

Develop a framework for multiple use services—defining service levels

Methods

Research Goal, Questions, and Methods

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Water Service Levels Defined

No services

Highest-level multiple use services

Intermediate-level multiple use services

Basic-level multiple use services

Basic domestic / basic irrigation

cc

most domestic and productive needs

many domestic and productive needs

limited domestic and productive needs

single use – either domestic and irrigation

Level 0

Level 1

Level 2

Level 3

Level 4

6

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Determinants of water service levels

Domestic Multiple Use Irrigation

Quantity

Quality

Reliability

Distance(physical, social and economic barriers to access)

Reducing distance between water source and homestead to support productive uses

Reducing distance to homestead, improving physical access to canals

Making water availability more reliable to support non-irrigation uses

Increasing water quantity to support productive uses

Improving water quality to support domestic uses

Water Service Levels Required to Support Multiple Uses

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Average additional per capita annual income benefits

Basic level MUS

Intermediate level MUS

Highest level MUS

$71$10

The largest incremental gains in income are achieved at the intermediate service level.

$61

$25

Basic Domestic

No services

$36

$25

Income Benefits by Service Level: Domestic

For a family of 5, an additional $125-$350/year

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• Health

• Food security and nutrition

• Diversifying livelihoods and reduced vulnerability

• Social equity and empowerment

Poverty Impacts: Non Financial Benefits

Photo credit: Umgeni Water

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• Most rural poor have assets necessary to benefit to some extent

• Improved water services enhances productivity of these assets

• Communities with higher water service levels have more home gardens, livestock and small-scale enterprises

Poverty Impacts: Key Findings

Photo credit: IRC

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Basic level MUS

Intermediate level MUS

Highest level MUS $140

Basic Domestic

No services

1.3

Cost BCR

3 - 8$56-105

Cost BCR

$98 - 116 .67

Cost BCR

Cost BCR

$63 - 91 (neg)

Costs and Benefits: New Domestic Services

Per capita investment costs include software and hardware

Benefit-cost ratios include: • Full Investment costs

• Re-current annual costs (O&M, source protection and capital maintenance fund)

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Intermediate Level MUS

Cost Annual net income

BCR Repay-ment period

Piped $105 $42 3.4 30 mos

Piped:Gravity-fed spring systems

$56 $51 7.8 13 mos

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Basic level MUS

Intermediate level MUS

Highest level MUS

Basic Domestic

No services

Costs and Benefits: Upgrading Services

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Where: Mapping the potential market for multiple use services

Incremental Costs & Benefits By Service Level & Technology

Assess Economic Feasibility of Multiple Use Services

Assess Potential Client BaseSize, Location & Characteristics

Potential Market

Enabling Conditions

Disaggregate Populations By Technology/Water Source For Water Service LevelsEstimate Populations By Water Service LevelsMap Socio-Economic Characteristics Using Available Data Opportunity action areas

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Estimated Rural Populations by Water Service Levels: South Asia and sub-Saharan Africa

0

50

100

150

200

250

300

350

400

450

500

Highest MUS IntermediateMUS

Domestic/Basic MUS*

No Services

pop

(milli

ons)

South AsiaSub-Saharan Africa

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Example: Mapping Market for New Piped Domestic Multiple Use Services

Sources: JMP, 2004. CIESIN, 2004.

16Sources: IWMI, GIAM, 2006. CIESIN, 2004.

Example: Mapping Market for Upgrading Irrigation Systems to Support Multiple Use Services

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1. New piped multiple use services for currently unserved at the intermediate service level

137 million $56-$105 3.4-7.8 13-30

2. Upgrading existing domestic piped systems to intermediate multiple uses service level

185 million $84 4.7 22

3. Boreholes with hand pumps: upgrading services to basic multiple use service level through communal add-ons to support multiple uses

280 million $25 5.4 12

4. Upgrading existing household hand-dug wells to the intermediate multiple use service level through well protection and improved lifting devices

74 million $39 - $102 3.4-8.6 9-26

5. Upgrading existing irrigation systems to basic and intermediate service levels: communal add-ons, domestic storage and home water treatment

447 million $10 - $110 2.9 - 27 3-24

Opportunity Action Area Market

Capital investment costs(capita)

Benefit-cost ratio

Repayment Period(months)

Potential for Multiple Uses Systems across livelihood zones

44 million households

220 millionpeople

52% of rural population

3.3 billion USD

4% of total water investment potential

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Study conclusions

• Multiple use services cost more but generate greater income and poverty impacts and offer greater potential for sustainability

• Income generation… Above 20 lpcd, each additional lpcd generates $.5-$1 per year of income.

Improving services from 20 to 100 lpcd translates into an additional $200-$400 for household of 5

• The potential market for multiple use approaches is substantial (>1 billion)

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ConclusionTHANK YOU!

Interested in more information

Mary Renwick

(mrenwick@winrock.org)

Report on the internet

Multiple Use Water Services for the Poor: Assessing the State of Knowledge

www.winrockwater.org