Development Goals: new cost estimates for attaining MDGs for water and sanitation

A new study by the World Health Organization (WHO) provides “more updated and comprehensive figures than have been previously available of the costs of attaining the MDG [Millennium Development Goal] target for water and sanitation” [1]. From 2005 to 2014 an estimated US$ 70 billion (EUR 48.2 billion) needs to be spent annually on water and sanitation of which US$ 18
billion (EUR 12.4 billion) is on increasing coverage to the currently unserved population and US$ 52 billion (EUR 35.8 billion) is on maintaining existing coverage.

Annual required spending for water is slightly higher for water (50.2%) than for sanitation (49.8%). Spending for new coverage is largely rural (64%), while for maintaining existing coverage it is largely urban (73%). About 10% to 30% of investments need to be earmarked for additional programme management costs.

The US$ 70 billion price tag translates to a developing region average per-capita spending requirement of US$ 120 (EUR 82.60) over a 10-year period (2005 to 2015), or US$ 12 (EUR 8.26) per capita annually.

Given the lack of up-to-date data on actual combined spending by governments and households on water supply and sanitation in developing countries, the study was not able to estimate the current financing gap at the global level.

[1] Hutton, G. and Bartram, J. (2008). Global costs of attaining the Millennium Development Goal for water supply and sanitation. Bulletin of the World Health Organization ; vol. 86, no. 1 ; p. 13-19. PDF file [http://www.who.int/bulletin/volumes/86/1/07-046045.pdf]

Related web sites: IRC – Financing and cost recovery [http://www.irc.nl/financing] ; Financing Water for All [http://www.financingwaterforall.org/]

Contact: Guy Hutton, Water and Sanitation Program (WSP), World Bank, Cambodia, mailto:ghutton@worldbank.org