In Search of Balance: Affordable and Sustainable Tariffs

26 Jan 2017

The community of El Candungo in San Antonio de Cortes, Honduras, had a fixed monthly tariff for each family of 30 Lempiras(HNL) (USD 1.30) for 2015. This was insufficient to cover the operating and maintenance costs needed for its new drinking water system. The community water committee, the service provider rural areas of Honduras, with great leadership succeeded in raising awareness among users and establishing a fixed monthly tariff of HNL 85 for each family. This covers 100% of the operating and maintenance costs – the monthly amount needed is HNL 3,453 Lempiras (USD 150). Furthermore, they are also now saving for 30% of future replacement costs.

There are many communities like Candungo looking to establish a tariff which allows them to have services provided in a sustainable way. But it is also important to balance considerations of affordability. This blog analyzes whether the current tariffs achieve a good balance between sustainability and affordability.

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