Benefit Assessment in MUS Guide for Groupwork and Discussion

Benefit definition Service level (point on water ladder) and not infrastructure or technology choice –Quantity –Quality –Access –Reliability –Status (JMP-defined coverage)

Benefit categories Measurable categories Crop production Fish production Livestock Livelihoods, jobs created Health (disease) Nutrition Power generation Domestic & industry Overall purpose Environment, optimize water use (e.g. seasonal hydrology) Community resilience Sustainability (multiple meaning) Equity (gender, poor, marginalized people) Achieved through Improved policy and implementation (transparent intersectoral & multiple stakeholder coordination and participation) Measured by social group, income level, type of user Benefit is scenario-dependent (D+ or I+ or Community MUS)

Outputs of CBA (economic analysis) Cost-benefit ratio (CBR), Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period –Financial versus non-financial versus economic –Household or broader societal Cost-effectiveness analysis?? Other relevant economic indicators –$ benefit per additional litre per capita per day –Additional income per family per year –Economies of scale (present or not?) –Process indicators, such as productivity Financing: CBA helps define who pays –Share of water, share of benefit, share of cost

For discussion What type of economic analysis to conduct? What is the comparator in economic analysis? How will a better understanding of the benefits facilitate practical decision making? Which benefits to include and measure? –Which benefits have the most traction with policy makers (e.g. National goals or MDGs)? –Design and survey tools required for the task (e.g. determine causality of effect) –Valuation methodologies Validating the benefits –Compare actual impacts with ex ante