International Journal of Academic Research in Education and Review

Vol. 9(7), pp. 304-323, September 2021

ISSN: 2360-7866

https://doi.org/10.14662/ijarer2021.315

 

Full Length Research

 

 

Assessment of Cost Recovery Practices in Water Supply in Worabe Town, SNNPRS of Ethiopia

 

Abdulsemed Abdela Musein1* Abdurezak Bahiru2, Temam Awol Bashir3

 

1.Silte zone plan office head, Silte zone, Worabe, Ethiopia

2.Investement Expansion office head, Silte zone, Worabe , Ethiopia

3.Urban Development and Construction Office head, Silte zone, Lera, Ethiopia

 

Accepted 20 September 2021

Abstract

Abstract: The policy for increasing the water coverage as well as the proper use and sustainability of the service requires implementation of a cost recovery system. Ethiopian water policy introduces full cost recovery program to provide improved water supply in urban areas of the country. Hence, the aim of this study was to assess the policy implementation of cost recovery practices in water supply in Worabe Town. Particularly, the study evaluated the level of cost recovery practices, analyzed the effect of cost recovery practices on water infrastructure and determined the challenges that affect implementation of cost recovery of water supply in the town. Regarding methodology of the study, the researcher used descriptive survey research method and employed qualitative and quantitative research approaches. In order to collect primary and secondary data the researcher used questionnaires, interview and documentation search. Regarding sampling design of the study, researcher was employing both probability and non-probability sampling techniques. The sample size of the study was 8 Employees of Water Service Provider Office, the Town Board of Director and 161 sample household respondents totally 170 sample individuals participated. The results of the study indicated that, the implementation of full cost recovery for water supply was quite poor in the town. The reasons for poor cost recovery were, inadequate tariff structure due to water tariffs being currently set at less than full-cost recovery levels and it was not revised for long period of time and also it was not incorporate separate tariff structure for industrial and commercial consumption in order to achieve cross subsidization in between non-domestic (industrial and commercial consumption) and domestic consumption; high rate of unaccounted for water through water leakage and unmetered connections; weak revenue collection capacities in Town Water Service Provider Office and low rate of private connections due to unaffordable connection charges for the poor in the town. In addition to this, the Town Water Board has a potential to cover only recurrent costs from user charge. These consequences for inadequate water service coverage and uneven water infrastructure distribution spatially in the new built up area of the town. Thus, continuing a cycle of inequitable access to water supplies in the town. Therefore, to improve the existing cost recovery practices the researcher draw possible solutions. Such as, the Town Water Board should be periodically revise and restructure the existing tariff rate and structure, reconciling cost recovery and affordability, aim for long-term sustainable cost recovery, improving commercial and technical efficiencies of water service provider office and should give emphases for continuous community awareness programme on the issue of cost recovery in water supply and services in the town.

 

Keywords: water coverage, water policy, cost recovery program, water supply

Paper type: research