Appraising proposals for water supply investments

The main objective of this paper is to discuss the feasibility and utility of economic appraisal of community water investments. In the first section the scope of current investments are detailed. In the second section we discuss the special problems associated with the proliferation of self-help water schemes. Public and private water investments together constitute an important commitment, and we explore the problem of judging whether this investment is at an appropriate level given national goals and available resources. It is evident that this difficult question cannot be satisfactorily answered until we have a more coherent understanding of the cost-effectiveness of individual schemes. Finally a set of criteria is suggested which may be used to obtain information about individual schemes. Application of these appraisal procedures will sharpen the judgement of decision makers making allocations within the sector. In aggregate this information will also be valuable to those concerned with resource allocations to the sector.