Cost-based economic valuation of Mindu dam water provision service and its dependency to Morogoro municipality, Tanzania

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Date

2022

Journal Title

Journal ISSN

Volume Title

Publisher

Sokoine university of agriculture

Abstract

Accessible domestic water is a recognized basic human right. Reduced supply of water causes high financial and social costs. This study used cost-based valuation approaches to estimate the economic value of Mindu Dam water provision to Morogoro Municipality. It focused on assessing water accessibility, estimating the degradation cost and the replacement cost of water provision. It involved both quantitative and qualitative data that were analysed by descriptive statistics and content analysis respectively. The study found that 80% of respondents depend on non-public water sources (boreholes, wells, rainwater and other sources), lacking metered connections to portable water as compared to 20% with access to metered connections. Due to pollution, the municipality loses about 1 168 756 011 TZS per year for water treatment while the public suffer from sanitation and hygienic problems as social costs due to inappropriate water supply. By using boreholes alternative, the replacement cost of Mindu Dam is 64 074 304 515.07 TZS in the investment year and 39 828 547 584 TZS per year thereafter. The water supply across the study area was insufficient and partly unaffordable with increasing costs of water treatment that are not accounted for decision-making. Finally, the study recommends to the government and relevant authorities to make use of the economic analyses and valuation data to refine decision making to manage sustainably natural ecosystems for water provision to avoid degradation and the due socio-economic costs and loses.

Description

Dissertation

Keywords

Cost-based economic valuation, Mindu dam, Water provision service, Dependency, Morogoro municipality, Tanzania

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