Cost-benefit analysis of urban water supply and distribution scheme

Abstract

In this study, cost-benefit analysis of Awka city water supply project was carried out considering current and projected water supply infrastructure. The result indicates benefit-cost ratios ranging from 0.3 to 0.5, meaning that there are between $1.90 and $3.36 of costs for every $1 in economic benefits. When these very low benefit-cost ratios are considered alongside the inconsistent and incomplete financial plans, it is clear that the proposed water supply project is not justified on an economic or financial basis. The study revealed that investments in the proposed water supply project would reduce government expenditure by over a period of twenty years.

Keywords: water; supply; project; cost-benefit; analysis