Training Module - D Community Based Financial Management DEMEWOZ CONSULTANCY
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MODULE – D FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY SCHEMES WASHCO/WB and role and tasks of main actors, with gender specific
roles.
affordability and willingness to pay,
Benefit cost analysis,
Budgeting for Costs, before, during and after construction: Cost sharing
creating a budget: Estimation of O&M costs,
Choosing the type of financing system: Tariff setting, vending, community
fund raising, credit schemes and revolving funds periodically, revenue
collection system and flow of collected funds, establishing a payment
system with the village,
Administration of funds registration of collection funds and payments,
bookkeeping, opening and using an account use of, funds for other
sectors activities, money plan control and reporting to the community,
sanctions for non payments, remuneration of water committee staff, and,
Management Capacity: Decisions making process, problem solving
capacity (in case of unexpected expenses or high inflation), information
needed in order to make financial decisions, self monitoring, learning
from experience, training needs, relationship with other actors.
Step- 2: Source of Income This section looks at financial aspects of water scheme management, which is
an essential part of sustainable O & M and management of water scheme
with regardless of type of water scheme.
In the community-based water scheme management, Cost Sharing for O & M of a water scheme is an important government policy. The community
needs to pay for maintenance & repair of the water schemes and save the
replacement of the equipment.
