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8.5.3 Maximizing the Willingness to Pay (WTP)
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8.5.3 Maximizing the Willingness to Pay (WTP)

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Willingness to pay (WTP) is an expression of the community’s demand for services, and is a strong prerequisite for the financial sustainability of a sanitation system. The WTP is a useful measure to assess the projects long-term feasibility, and depends on a number of factors:

 

  • Demand for services and the level of participation of the village;
  • Level of income;
  • Community cohesion (this refers to the community level of trust or cooperation between households and community members and leaders);
  • Perception of ownership and responsibility;
  • Service level and quality (or standard);
  • Price for services;
  • Relative costs for other community services (ex. Water service, electricity, transportation, and other services or goods);
  • Reputation of the agency assisting the community;
  • Transparency of the financial agreements and management;
  • The community’s perception of benefits;
  • Existing conditions; and
  • Policy and standards.

 

The WTP is strongly influenced by several cultural, social, institutional and financial factors that complicate the ability to simply measure it. The village committee with assistance from the county government, will need to work closely with the community members to determine the WTP, through a participatory process of community meetings and interviews.

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