High costs per beneficiary can kill even the best projects. The economic rate of return for the El Salvador Water and Sanitation Sub-Activity was estimated as 3.6% at the close of the Compact, due largely to low population densities and high costs. While the execution of water, sanitation, and hygiene projects can be improved using the above lessons, it must be kept in mind that if we target expensive or low density regions, the benefits are unlikely to justify the project.
Lesson Learned