Benefits of investing in water and sanitation

Tremolet Consulting, in association with ACTeon, carried out a comprehensive review of the benefits of investing in water and sanitation. This report, carried out for the OECD, was debated at the OECD Expert Meeting on Water Economics and Financing held in Paris on 17th March 2010. Publication is expected late 2010.

The provision of water supply, sanitation and wastewater services generates substantial benefits for public health, the economy and the environment along each step of the water and sanitation value chain.

Benefits from the provision of basic water supply and sanitation services such as those implied by the Millennium Development Goals are massive and far outstrip costs. Benefit to cost ratios have been reported to be as high as 7 to 1 for basic water and sanitation services in developing countries.Wastewater treatment interventions can generate significant benefits for public health, the environment and for certain economic sectors such as fisheries, tourism and property markets, although these benefits may be less obvious to individuals and more difficult to assess in monetary terms. Finally, protecting water resources from pollution and managing water supply and demand in a sustainable manner can deliver clear and sizeable benefits for both investors in the services and end water users. Investments in managing water resources are going to be increasingly needed in the context of increasing water scarcity at the global level.