Economic and social efficiency in the distribution of water for human consumption through community-based management, Cotacachi Canton, Ecuador.

Abstract

The present paper analyses the financial viability of the provision of water supply service for the population of the Intag region, in the Cotacachi canton, Ecuador, from the perspective of a private investor and of the organised community. Although the national law states that the principal responsable institution for water supply is the State, in practice the inhabitants of the rural area have gained Access through community organization. The data was obtained from the survey carried out in the area for the V5E Research Project and, using the Net Present Value and a Cost-Benefit analysis, it was assigned a monetary value to the community labour. The results show poor financial feasibility of provision infrastructures. However, it can be said that there is economic efficiency when analysing the costs and benefits for the community.