r - part - usaid

costs Prom Table 2.4.17, the amortized cost per cubic meter are
as follows:
NPV Totzl Water
Region
Central
"Average ts Range
Cost J cubic meter $0.73 51.00 $1.26
Cast Su.Sh.@ 83~1 62 83 105
Tables 2-4-28 and 2.4- 29 are included to show
order-of-magnitude cost estimates of a five-year well
canslructian program in Somalia. The projections of "Total
Weeded Wellss for each year up to 1990 are taken from reports
produced by LBII for the Private Sector Study, and represent
'... a more modest set of goals presented in the MMWRfs planning
document ... inplying less of an attempt to develop groundwater
resources and relying xelatively more heavily on surface water
resources znd catchments.. .'t, (LSII, 1985) , (XMWR, 1983). Based
on these estimates, the annual national program costs by 1990
will have risen to between twenty-two and thirty-nine million
dolXars. These figures exclude WDA overhead costs, In
practice. many of these wells w ill be constructed by the private
sector, or directly by donor-funded development prajects through
the budgets of other Ministries. The figures therefore
represent an estinate of natisnzl requirements, rather than a
budget projection fur WDA.
4.3.4, Well Revenues
The official price of water sold from WDA wells is
currently set at So.Sh-18 per cubic meter. In practice, this
price is very difficult to adhere to with any precision.
The difficulties involved in estimating the actual price
charged for water are discussed first. Given these
difficulties, the assumptions made are explained. The validity
of those assumptions is then examined in terms of a communityls
ability both to consume the amount ef water produced, and to
afford the appropriate cast involved. finally, the impXications
of aiming to recover investment costs are discussed.