Socioeconomic Surveys for Urban Development and Water Projects: A Guidebook
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Socioeconomic Surveys for Urban Development and Water Projects - Asian Development Bank
I. The ADB Project Cycle
Socioeconomic surveys based on questionnaires are an effective method of collecting a sample of data from a target population. The data is then analyzed to describe the characteristics of the population, explain or predict a behavior or attitude, or to explore new areas of interest from which to draw conclusions and make important decisions.
For Asian Development Bank (ADB) projects, surveys can provide important feedback from people in a project area on the acceptability and need for a project, the current situation, their preferences regarding the project, the desirable features of project interventions, the project’s affordability, and the people’s willingness to pay for improved services. But, above all, surveys are significant because they give an initial indication of whether a project is feasible or not.
Surveys are most often conducted at the project preparation and appraisal phase of the ADB project cycle, especially as part of feasibility studies (Figure 1). Information obtained from surveys contributes to project design, and supports ADB’s due diligence, which serves as the basis for loan approval. All projects that seek ADB funding are assessed during project processing.
Figure 1: ADB Project Cycle
ADB = Asian Development Bank, TRTA = transaction technical assistance.
Source: ADB.
Determining project economic viability through economic analysis is one of many due diligence requirements for ADB projects. Other requirements, such as sector assessments, the project’s poverty-reduction and social strategy, risk assessments, climate change assessment, gender action plan, environmental examination, land acquisition resettlement plans, and financial analysis are also developed during the processing. Survey data is particularly useful for preparing the project’s cost–benefit analysis (CBA). CBA establishes the economic viability of the project by measuring whether the estimated economic benefits outweigh the economic costs.
For example, ADB projects in urban development and the water supply sector support multiple outputs (e.g., house connections, sewer connections, garbage disposal, toilets, etc.). The potential benefits associated with these outputs are numerous and diverse, ranging from those that are easily identifiable and quantifiable in monetary terms to benefits that are intangible and difficult to measure. Differing benefits may also accrue to members of a household (e.g., women, children under five, or people with a disability).
The ADB Guidelines for the Economic Analysis of Projects (2017) provides instructions for assessing the benefits and economic viability of urban-development and water-supply projects. It identifies two general types of project benefits: incremental and non-incremental. Incremental benefits are derived from project outputs that meet additional demand, such as the construction of a new water supply or sewerage system. These benefits are usually measured based on the estimated consumers’ willingness to pay (WTP) (in effect, the average demand price) for the incremental volume of water consumed due to a project intervention. Non-incremental benefits, on the other hand, are those arising from project outputs that replace existing supply (e.g., alternative sources for displaced water supply) and can be estimated using survey data. They are generally lumped into two categories: resource cost savings and health savings.
This guidebook on ADB urban-development and water-supply projects has been developed to provide practical guidance to project teams on good field survey design and implementation. It includes standardized questions and survey approaches for projects in the sector. The modular, gender-sensitive questions cover the core and expanded questions that project teams should include in their survey instruments to be able to estimate project benefits. Core questions, which are common to all sector project questionnaires, provide basic information on urban water and sanitation, and on solid waste and flood management, in a project area.¹ Standardizing core questions allows the comparability of basic data across projects. Expanded questions, on the other hand, include a larger set of questions that are intended to be used for more robust economic analysis, particularly in valuing project benefits and impacts.
The guidebook is structured as follows. Section II presents common mistakes in survey questionnaires that project teams should avoid. It presents a range of examples from various surveys to make identification of the mistakes easier, and proposes some alternatives. Section III identifies the sources of the core and expanded questions that are proposed by the guidebook. The sources are the urban-development and water-supply survey instruments of the World Health Organization (WHO)/ United Nations Children’s Fund (UNICEF) Joint Monitoring Programme for Water Supply Sanitation and Hygiene, the World Bank, and ADB. Section IV provides pre-survey and survey implementation guidelines for securing data quality throughout the data-gathering process. Meanwhile, the annotated draft questionnaire with core and expanded questions is included in section V. The annotation clarifies what the questions are for and provides overall guidance to project