Published in: 1999
Water is rapidly becoming a scarce resource in almost all countries and cities with growing population on the one hand, and fast growing economies, commercial and developmental activities on the other. This scarcity makes water both a social and an economic good. Its users range from poor households with basic needs to agriculturists, farmers, industries and from commercial undertakings with their needs for economic activity to rich households for their higher standard of living.
For all these uses, the water supply projects (WSPs) and water resources development programs are being proposed for extension and augmentation; likewise with the rehabilitation of water supply for which measures for subsequent sustainability are being adopted.
It is, therefore, essential to carry out an economic analysis of projects so that planners, policy makers, water enterprises and consumers are aware of the actual economic cost of scarce water resources, and the appropriate levels of tariff and cost recovery needed to financially sustain it.
ADB (1999). Handbook for the Economic Analysis of Water Supply Projects. ADB
Asia & Pacific English
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