chapter  9
18 Pages

Development and validation of a financial flow simulator for the sanitation value chain

ByFiona Zakaria

168The Sustainable Development Goals embrace the concept of faecal sludge management (FSM), moving beyond the provision of only toilets. Hence the financing of all sanitation services from the toilet (containment) to reuse (sanitation value chain) need to be considered if a system is to be considered financially sustainable. FSM requires different financing strategies compared to traditional sewer-based systems, due to a fragmented service chain that due to different service providers and organisational arrangements. A tool has been developed (eSOS Monitor®) to simulate the financial flows along and within the sanitation value chain (SVC). It was developed to enable the users to explore and optimise the financial sustainability across SVC or at a particular part of the SVC. In this chapter, the tool was tested and validated using data from Nonthaburi, Thailand (baseline scenario). As the system in Nonhaburi system is reliant on budget support, several scenarios were modelled using different financial flow models, with the aim to recover the operational and capital expenditure. The results from the models showed that transport and emptying combined, are financially sustainable with an emptying fee of $15, but become unsustainable when a discharge fee is introduced. The treatment process becomes sustainable when a sanitation tax of $50 was introduced, which then becomes the budget support for the treatment procoess. This study successfully demonstrates how the eSOS Monitor can be used to explore different FFMs for a case study area and how it can be used to optimise the financial sustainability across an SVC.