Operation and Maintenance Management Manual Training Module - D Community Based Financial Management DEMEWOZ CONSULTANCY
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3.6 Session – D5: Tariff Setting MODULE – D COMMUNITY BASED FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY SCHEMES Session – D5 Tariff Setting Introduction The purpose or this session is to establish the financial basis for sustainable
operation, along with the considerations that go into setting a tariff structure.
Without proper agreed tariffs, the community water supply schemes will not be
sustainable as either the members will feel they are paying too much money or
there will be no funds to pay for operation and maintenance.
It is important that members fully appreciate the reasoning behind the tariffs and
why it is important that all pay their bills.
Objectives By the end of the session, participants will be able to:
1. Explain the reasons for setting water tariffs
2. Identify stakeholders involved in water tariff setting
3. Know factors to be considered when setting a tariff
4. Agree the costs that they need to cover to sustain their water system.
5. Agree appropriate tariffs for their water system.
Outputs Tariff Plan
Timing 2 hours
Target Group WASHCO and Community Members, other stakeholders (e.g. water
boards, Woreda Water Office)
Methodology Short presentation
Question and Answer
Discussions
Group exercise on tariff calculation
Materials Handout - calculating of tariff
Flip chart paper and marker pens
O&M guidelines
Water Board guidelines
WUA by-laws
