Part of International Bank for Reconstruction and Development’s International Development Association Energy, Water and Telecommunications Department Public Guidelines Series, 18th February 1977, with J J Warford
Economic evaluation of sewerage projects involves special problems relating to the demand forecast, choice of the least cost solution, and the comparison of project benefits and costs. As in the case of other utilities, it is normally not possible to calculate the internal economic rate of return for sewerage projects, but unlike other utilities, the role of price in demonstrating project justification is very limited. Showing that the trade-offs between efficiency, equity, ease of administration, and financial objectives are very complex in the case of sewerage pricing, this note describes methods that are currently used and recommends an approach to be used in LDCs.
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Reproduced with permission of World Bank