STRATEGIC EVALUATION OF COST AND BENEFIT ANALYSIS OF A RURAL WATER SUPPLY PROJECT: A CASE STUDY OF DEI-DEI COMMUNITY, ABUJA, NIGERIA

Abstract

Strategic evaluation of some rural water project in Nigeria is crucial for adequate water supply and public health. The aim of this research is to evaluate the cost and benefits for a proposed rural water supply scheme identifying the optimum alternatives to be chosen for the water supply scheme. To provide safe, adequate and reliable water supply and sanitation services to selected low-income rural communities through community-based arrangements and to support hygiene and sanitation education, water quality surveillance and community management activities in the project area. It also assesses the cost and benefit analysis of a rural water supply project, taking the community of Dei-Dei as a case study. The main challenge associated to regional water supply systems lies in understanding the best infrastructure alternatives, in terms of cost and benefits. The method used to ration a projects output determines who obtains it, and therefore, the valuation that is placed on it. Hence when we conduct cost-benefit studies, we must consider simultaneously the way in which a project’s benefits are measured and the method used to ration the project’s output. Reducing the positive and negative impacts of the project to its equivalent money value the Cost-Benefit Analysis determines whether on balance the project is worthwhile. Equivalently the money value is based upon information derived from consumer and producer market choices. It has been ascertained that demand and supply schedule for water supply need urgent attention to avert issues related to human health, goods and services affected by the project.