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Table 1

Components of lifecycle costs

Type of costDescription
Capital expenditure Initial costs of putting new services into place: hardware such as pipes, toilets and pumps and one-off software such as training and consultations 
Cost of capital The cost of borrowing money or investing in the service instead of another opportunity. It also includes any profits of the service providers not reinvested 
Operation and minor maintenance expenditure Routine maintenance and operation costs crucial to keep services running, e.g. wages, fuel or any other regular purchases 
Capital maintenance expenditure Occasional large maintenance costs for the renewal, replacement or rehabilitation of a system 
Expenditure on direct support Pre and post-construction support costs not directly related to implementation, e.g. training for community or private sector operators, users or user groups 
Expenditure on indirect support The cost of planning and policy making at government level and capacity building of professionals and technicians 
Type of costDescription
Capital expenditure Initial costs of putting new services into place: hardware such as pipes, toilets and pumps and one-off software such as training and consultations 
Cost of capital The cost of borrowing money or investing in the service instead of another opportunity. It also includes any profits of the service providers not reinvested 
Operation and minor maintenance expenditure Routine maintenance and operation costs crucial to keep services running, e.g. wages, fuel or any other regular purchases 
Capital maintenance expenditure Occasional large maintenance costs for the renewal, replacement or rehabilitation of a system 
Expenditure on direct support Pre and post-construction support costs not directly related to implementation, e.g. training for community or private sector operators, users or user groups 
Expenditure on indirect support The cost of planning and policy making at government level and capacity building of professionals and technicians 

Source:McIntyre et al. (2014).

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