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<p>This study assessed households’ (HHs) willingness to pay (WTP) for improved water supply services and its associated factors as part of the research being conducted to determine commercial viability and typology of public-private partnership modality to improve water supply services in Ethiopia. A total of 1169 systematically sampled HHs were interviewed between June and July 2024 in three districts of the Amhara region. A contingent valuation method with open-ended elicitation questions was employed using in-person interviews. The aim was to determine HHs’ WTP for the development of water infrastructure, management of water system, and monthly water bill to replace the existing system which majorly relies on unimproved sources with a newly proposed improved water supply service with a piped HH connection. The results showed that HHs are willing to pay from 101 to 246 Birr per month, 1.7–6.2% of their total monthly expenditure. This is much more than the amount they currently spend on water. This indicates a strong demand for improved water services. Econometric regression analysis was employed to examine factors associated with WTP. The results showed that HH’s WTP is associated with age, gender, and educational status of HH heads, HH income, main water supply sources being used, and perceptions of private sector engagement in managing water schemes. The amount HHs would pay is associated with their income and loan status. The study revealed a positive link between private sector engagement and HHs’ WTP. This encourages participation, ensures profitability and suggests financial sustainability of water supply services.</p>

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Households’ perception of private sector engagement is associated with their willingness to pay for improved water supply services: evidence from three rural districts in Ethiopia

  • 期刊论文

  • 发表日期：

    2026年2月26日

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  • Gemechu Beyene Mekonnen,
  • Endriyas Shobew,
  • Oliver Jones,
  • Habtamu Woldeamanuel

摘要

This study assessed households’ (HHs) willingness to pay (WTP) for improved water supply services and its associated factors as part of the research being conducted to determine commercial viability and typology of public-private partnership modality to improve water supply services in Ethiopia. A total of 1169 systematically sampled HHs were interviewed between June and July 2024 in three districts of the Amhara region. A contingent valuation method with open-ended elicitation questions was employed using in-person interviews. The aim was to determine HHs’ WTP for the development of water infrastructure, management of water system, and monthly water bill to replace the existing system which majorly relies on unimproved sources with a newly proposed improved water supply service with a piped HH connection. The results showed that HHs are willing to pay from 101 to 246 Birr per month, 1.7–6.2% of their total monthly expenditure. This is much more than the amount they currently spend on water. This indicates a strong demand for improved water services. Econometric regression analysis was employed to examine factors associated with WTP. The results showed that HH’s WTP is associated with age, gender, and educational status of HH heads, HH income, main water supply sources being used, and perceptions of private sector engagement in managing water schemes. The amount HHs would pay is associated with their income and loan status. The study revealed a positive link between private sector engagement and HHs’ WTP. This encourages participation, ensures profitability and suggests financial sustainability of water supply services.