Life-cycle cost analysis for Splash school interventions in Addis Ababa, Ethiopia

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Life-cycle cost analysis for Splash school interventions in Addis Ababa, Ethiopia
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Identifyingchanges and trends since the start of the WISE project and identifying mechanisms that need tobe put in place for longer-term financial sustainability.
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An analysis of the costs, funding gaps, and sustainability challenges of providing water, sanitation and hygiene services to schools in Addis Ababa through the WISE project.
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An analysis of the costs, funding gaps, and sustainability challenges of providing water, sanitation and hygiene services to schools in Addis Ababa through the WISE project.
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Arjen Naafs

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Naafs
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Expert on water & climate and monitoring

Born in the leprosy mission ALERT in Ethiopia, where my father served as a doctor, I drank water with excessive levels of fluoride in my younger years — enough to leave my teeth brown and brittle, hard on the outside, soft and fragile within. This daily reminder while brushing my teeth is one of my drivers to change the system. Providing good basic services such as safe water, decent sanitation and good hygiene secures a more dignified life with white smiles and less leprosy. After all, prevention is better than a cure (apologies Dad, for not becoming a doctor!).

As a hydrogeologist, my first job was finding water and drilling boreholes for remote communities in Uganda. Great, rewarding work. However, quite soon I noticed that the boreholes stopped working. Spare parts were unavailable. There was no maintenance budget. No technician. It was never just one thing; it was a whole range of interlinked aspects. That put me on a 25-year journey: from hydrogeologist to systems thinker, from field practitioner to data strategist. I now work with governments, national utilities and district leaders who want to understand how best to provide services that last.

Having been fortunate to have lived in seven, worked in 15+ countries, I thrive on facilitating change across cultures — running a consultancy in Mozambique for a decade, directing WaterAid's technical programme across five South Asian countries, and working as hydrogeology lead with mWater. Now as an associate with Riva, I work at the intersection of water resources, climate change and water and sanitation services. I have shaped climate-resilient strategies with national utilities in Rwanda and Malawi, and drive change through data. I do this with energy, passion and a knack for creating an understanding which lever of the system need to be shifted.

  • Senior water and climate leader with 25+ years’ experience of working across Sub-Saharan Africa and South Asia. Lived in Mozambique and Uganda, and lead multi-year programmes in Bangladesh, Ethiopia, India, Nepal, Myanmar, Pakistan and Rwanda. 
  • Learning, knowledge & evidence champion, supporting external accountability (annual monitoring reports), strengthening national monitoring systems (SINAS Mozambique, Guinea Bissau). Translating programme evidence into guidance (WaterAid’s frameworks on Water quality, Sustainability and Disasters).
  • Inclusive and dynamic facilitator, with a strong track record in training (both in-person and virtual training sessions such as masterclasses on Climate Resilience for the Global Centre for Adaptation), and former chair of Riva’s Global and Netherlands Staff Council.
  • Dynamic innovator, as managing partner build consultancy company from zero to US$ 800,000 annual turnover; delivered 100+ projects including developing groundbreaking water coverage maps and creating world-first sustainability checks with UNICEF.
  • Author or co-author of 20+ publications on Climate (e.g. Climate change, water resources and WASH systems, IRC), Hydrogeology (e.g. “Hydrogeology of Mozambique, BGS) and Life-cycle Costing (e.g. “The Cost of Capital”, IRC)
  • Globally oriented and multi-lingual in five languages - English, Dutch, German, Portuguese and Spanish. Additionally strong, nerdy level, digital and analytical skills. MSc in Hydrogeology, Vrije Universiteit Amsterdam
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Abinet Kebede

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Kebede
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The WISE project is set to provide safe water, good sanitation, and healthy hygiene to all the schools in Addis Ababa. To put these services in place, both AAEB and SPLASH are investing considerable amounts of money. Hand washing stations, drinking water filters, latrine blocks are being built and hygiene behaviour change campaigns rolled out. But how much does it cost to keep these running once the project is over? Who will finance these operational costs? IRC WASH did a study in 2019 to look at all the different costs (using the so-called – Life-Cycle Cost Approach- LCCA) and has now updated it for 2021. This has provided the following insights: The WISE project has adapted since 2019 and has been raising the provided service levels. Particularly by reducing intermittent water, by including faecal sludge aspects, and by broadening hygiene training with janitors. This has led to an increase in CapEx cost per student from ETB 886 to ETB 3103. The Main CapEx cost is sanitation (63%) and therefore improving costs effectiveness of sanitation should have priority. The annual recurrent expenditure is ETB 256 per student per year, of which ETB 184 (71%) is covered by Taxes (School budgets), 6% by Tariffs (parents paying for soap), and ETB 57 by Transfers (Splash mainly on support costs and operation costs for water). To achieve good quality basic service levels ETB 595 per student per year on recurrent cost is needed. This gives a current finance gap of ETB 338, which is mainly toilet paper for students, which arguably should be covered by Tariffs (parents or other sources of income). The key to securing funds for sustainable funding for WASH is working with sub-city and woreda staff on the allocation of the available budget. The annual recurrent expenditure of ETB 184 per student per year should be raised to ETB 240 to remove dependency on SPLASH funds for annual recurrent costs. This is respectively 6% and 4% of primary and secondary school fund allocation.
Title
Life-cycle cost analysis for Splash school interventions in Addis Ababa, Ethiopia
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Title
ife-cycle cost analysis for Splash school interventions in Addis Ababa, Ethiopia Update 2021
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Year
2021