Guidelines for the Economic Analysis of Water Supply Projects provide a structured framework for evaluating the economic viability and social value of water investments. They outline how to identify, quantify, and compare project costs and benefits over the full lifecycle, including capital, operation, maintenance, and environmental impacts.
The guidelines emphasize the use of economic prices to reflect true resource costs, distinguishing them from financial prices. They highlight key benefit categories such as improved public health, time savings, increased productivity, and enhanced reliability of supply. Special attention is given to valuing non-market benefits and addressing affordability for low-income users.
They also recommend applying discounting, sensitivity analysis, and risk assessment to test project robustness under uncertainty. Overall, the guidelines support informed decision-making by ensuring that water supply projects maximize net social benefits while promoting efficiency, equity, and long-term sustainability.
