Developing a Level of Service Framework for Water Supply and Sanitation Systems: A Balancing Act for Cost, Risk, and Performance

Effective management of water supply and sanitation systems is vital for public health, economic stability, and environmental sustainability. A Level of Service (LoS) framework enables organizations to set benchmarks that define the safety, reliability and quality of services provided to communities. Given the complex and often competing objectives involved in water and sanitation service delivery, the framework must support trade-off scenarios between cost, risk, and asset performance to allow decision-makers to understand the implications of their decisions. This post explores the importance of integrating diverse expertise from various disciplines in developing a robust LoS framework that captures the multifaceted nature of decision-making in managing water supply and sanitation systems.

1. The Need for a Trade-Off Framework for managing Water Supply and Sanitation Systems

The water sector faces numerous challenges: limited financial resources, aging infrastructure, climate change impacts, and increasing demand for safe and reliable services at affordable price to the consumer. Decision-makers must often make tough choices between maintaining or improving service levels, mitigating risks, and managing costs. An effective LoS framework enables trade-off analyses to balance these three dimensions by providing a systematic approach for understanding and quantifying the consequences of each decision.

Trade-offs are especially critical in the context of water and sanitation services due to their essential role in public health and welfare. For example, increasing service levels may require a higher degree of upfront investments, potentially impacting affordability and long-term sustainability due to the increased whole life cycle asset costs. Similarly, reducing operational costs might introduce risks to service reliability or - in the worst case - compromise water safety. Without a framework that facilitates transparent trade-offs, decisions may inadvertently lead to detrimental outcomes for both the service provider and the community.

2. Components of a Level of Service Framework

A robust LoS framework for water and sanitation services should include the following elements:

- Asset Performance Monitoring: Mechanisms for tracking asset performance and service quality over time, ensuring measurable impact from decisions and enabling adjustments as needed.

- Service Metrics: These define the standards for water safety, quality, availability, and reliability, often tailored to meet regulatory and community expectations.

- Cost Analysis: Assessments of capital and operational expenses associated with varying levels of service, enabling comparison across different investment scenarios.

- Risk Assessment: Evaluation of the potential risks associated with different service levels, including the impact on public and environmental health, safety, well-being, compliance, etc but also infrastructure sustainability and whole life cost of system ownership.

These components together allow for scenario planning, where decision-makers can evaluate the implications of different choices, weigh trade-offs, and select options aligned with strategic goals.

3. Essential Expertise in Developing the LoS Framework

The development of an LoS framework is inherently interdisciplinary, requiring the expertise of professionals across operations, public health, engineering, finance, risk assessment, and economics. The unique perspectives of these experts are crucial in addressing the diverse considerations involved in water and sanitation service delivery.

a) Operations & Maintenance Staff

Operational staff are integral to the framework as they provide insight into the practical implications of proposed service levels on the ground. Their understanding of daily system management, resource needs, and limitations ensures that the framework is feasible and reflects real-world conditions, in particular to safe and reliable systems operation but also maintenance management.

b) Public Health Specialists

Water and sanitation services have a direct impact on public health outcomes, particularly in terms of waterborne diseases and hygiene. Public health experts ensure that the LoS framework prioritizes health, safety and reliability standards, advising on minimum service requirements necessary to safeguard community health and providing insight into the potential health risks of compromised service.

c) Engineering Specialists

Engineering professionals bring critical technical knowledge of water infrastructure, enabling informed decisions on asset reliability & maintenance, upgrades, and technological innovations. Their expertise is vital in assessing the physical requirements of service level options and understanding how different investments affect infrastructure resilience and longevity.

d) Financial Specialists

Financial experts play a critical role in evaluating the costs and financing options associated with different service levels. They can assist with providing cost-benefit analyses, assess funding availability, and help ensure that the framework is financially sustainable. Financial analysis is essential in trade-off scenarios to understand long-term affordability and the potential impact on the cost to consumers or other funding mechanisms.

e) Risk Assessment Professionals

Given the growing complexity of water and sanitation services, especially in the context of aging infrastructure, risk assessment professionals are key contributors to the LoS framework. They can support with evaluating potential vulnerabilities, including infrastructure asset failure risks, compliance risks, and climate-related hazards, enabling informed trade-offs that prioritize resilience and risk mitigation.

f) Economists

Economists contribute valuable insights on the socioeconomic implications of service levels, including public and environmental health benefits and the effects on consumers and community welfare. Their analyses help decision-makers understand the broader economic consequences of different service options, particularly in terms of 'return on investment', affordability, and the potential for long-term community benefits.

4. Building a Decision-Making Framework

A decision-making framework based on interdisciplinary input fosters transparency, accountability, and alignment with organizational goals. The collaborative process can improve the robustness of business cases, helping stakeholders to grasp the full spectrum of consequences that different LoS options entail.

For instance, a proposed service upgrade might initially appear costly, but economists and public health experts could argue for its long-term economic and health benefits. Likewise, engineering specialists and risk assessors may highlight potential challenges associated with lower-cost options, such as accelerated asset degradation or increased vulnerability to external risks. This multidimensional perspective is crucial for decisions that balance short-term affordability with long-term resilience.

A structured decision-making process can also facilitate community engagement, as the framework makes it easier to communicate how specific choices affect service quality, safety, reliability and affordability. By demonstrating a transparent and well-informed approach, service providers can foster public trust and secure support for necessary investments or policy changes.

5. Benefits of a Robust LoS Framework

The development of a comprehensive LoS framework that includes diverse expertise provides numerous benefits:

- Enhanced Decision Quality: Decisions are based on a full understanding of the trade-offs between cost, risk, and performance, leading to choices that better serve organizational and community goals.

- Increased Accountability: Clear documentation of assumptions and trade-offs helps hold decision-makers accountable for their choices.

- Optimized Resource Allocation: The framework enables effective prioritization of investments, ensuring that resources are allocated to areas with the highest impact.

- Improved Resilience and Sustainability: A thorough risk assessment process helps to anticipate potential vulnerabilities and design resilient, sustainable service systems.

6. Conclusion

Developing a Level of Service framework for water supply and sanitation is essential to ensure reliable, affordable, and sustainable services. The complexity of the sector necessitates a structured approach that allows for trade-off scenarios between cost, risk, and asset performance. Involving a multidisciplinary team—encompassing operations, public health, engineering, finance, risk assessment, and economic expertise—is crucial to creating a robust and comprehensive framework. Such a collaborative approach ensures that the framework reflects both practical realities and strategic priorities, providing decision-makers with the insights they need to balance competing demands and make choices that deliver long-term benefits for both the service provider and the community. Through transparency, accountability, and interdisciplinary collaboration, a well-structured LoS framework can play a vital role in shaping the future of water and sanitation services, ultimately supporting public health, economic development, and environmental sustainability.