Managing and Financing World Water and Wastewater

On successful completion of this module the student will be able to:

• Understand the economic and social drivers for the effective, equitable & efficient management of water and sanitation
• Understand the role conventional utilities could and should play in ensuring improved services to all consumers
• Analyse and understand the meaning of a set of utility financial statements in order to calculate an average tariff
• Understand the principles of cost-reflective pricing based on historical costs as well as long run marginal costing, with respect to capital expenditure, operating expenditure, capital maintenance expenditure and the cost of capital
• Understand tariff structures linked to differentiated service levels with appropriate subsidies
• Explain the different institutional models of urban water supply and sanitation service, understanding strengths and weaknesses to achieve customer-oriented universal service
• Understand the different patterns of public private partnerships and recommend a PPCP for different settings.

• Institutional models for urban water supply and sanitation including the role of utilities
• Public Operator Partnerships and Public Private Partnerships
• Economic value of water and cost-reflective pricing
• Commercial, fixed asset accounting
• Analysis of Financial Statements
• Tariff principles, increasing block tariffs and lifeline tariffs
• Average historical cost accounting and long run marginal costing
• Demand responsiveness: Ability to pay and Willingness to pay
• Pricing and service differentiation for the poor
• Sources of finance for a long-term asset based industry
• Decision-making for financial management: The Waterman Simulation.