Financial Flow Simulator: eSOSView ©

Claire Furlong
IHE Delft
Brief history of financial tools in FSM
• Started in 2000’s
– Link to technology selection
– Overall sustainability
– Focused on CAPEX and OPEX
- SANEX (2000), WhichSan (2009), NEWSAN (n.d.)
• Second wave 2010 +
– Lifecycle cost
- Financial Analysis Tools for Urban Sanitation (2010), WASHCost (2014),
Technical and Financial Tool Kit (2016)
• Context specific
– Bangladesh Financial Analysis Tools for Urban Sanitation (2010)
– India Saniplan (2016)
What are financial flow models (FFMs) ?

The analysis of cash or capital movement in and out of an

entity

• Value capture part of business model framework

• Alternative names: Capital Flow Models
Cash Flow Models
Transfer analysis
• Used to assess the financial sustainability
• Use at all levels country level, sector (WASH), company
How does this related to the SDGs

• Embraces a systems approach*

• addresses the SDG Industry Matrix call to “…apply modelling expertise to

help develop financially sustainable models for water projects, using fees
and tariff structures which reflect future costs and manage usage while
subsidising connections and consumption for the poor’’ (UN, 2015).
FFMs you may have seen…

• Complexity of sector highlighted in Broken et al., 2014

• Work focused on business models*
• Study focused on one part of SVC
• Basic FFM have been summarised in Chapter 13, Tiley and Donde, 2014
Name that FFM?

Group 1:
Name that FFM?
Group 2:
Financial indicators in FFM
eSOSView©

eSOS© (covered in Module 5)

- Original eSOS tool used to build SVC
- Second part eSOSView© is a Financial Flow Simulator for SVC
- Use explore FFM for one scenario or compare several scenarios
- Beta version (Excel based)
eSOSView© Financial Indicators
eSOSView© data requirements

• Defined SVC (technology)

• Defined area
• CAPEX & OPEX & Revenue for each part of SVC

Lots of data or valid assumptions

eSOSView© examples of data
eSOSView© Example
eSOSView© exploring financial sustainability

* All compared to the baseline scenario (FFM2)

eSOSView© exploring financial sustainability
References
AECOM, Sandec & Eawag (2010) A Rapid Assessment of Septage Management in Asia: Policies and Practices in India, Indonesia,Malaysia, the Philippines, Sri Lanka, Thailand, and
Vietnam. http://pdf.usaid.gov/pdf_docs/Pnads118.pdf. Last accessed 27/9/2017.

AIT (2012) Final Report: Assessment of Faecal Sludge Rheological Properties. http://www.susana.org/_resources/documents/default/2-1661-fs-final-report31-01-12.pdf. Last accessed:
27/9/2017.

AIT (2015) Faecal Sludge Management Financial Flow (Nonthaburi Case Study) (Video). https://www.youtube.com/watch?v=Lw2GGGafBjc. Last accessed: 27/9/2017.

Bocken N.M.P., Short S. W., Rana P., & Evans S. (2014) A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, pp 42-45

Harada H., Schoebitz L. & Strande L., (2015) SFD Report Nonthaburi, Thailand. http://sfd.susana.org/sfd-worldwide/cities/44. Last accessed 27/9/2017

Rao, K. C., Kvarnström, E., Di Mario, L. & Drechsel, P. (2016) Business models for fecal sludge management. Colombo, Sri Lanka: International Water Management Institute (IWMI). CGIAR
Research Program on Water, Land and Ecosystems (WLE). 80p. (Resource Recovery and Reuse Series 6). doi: 10.5337/2016.213

Steiner M., Montangero A., Koné D., & Strauss M, (2003) Towards More Sustainable Faecal Sludge Management Through Innovative Financing: Selected Money Flow Options (Draft).
Published by Swiss Federal Institute for Environmental Science & Technology (EAWAG) and Department of Water and Sanitation in Developing Countries (SANDEC)

Tilley E. & Dodane P-H (2014) Chapter 13: Financial Transfers and Responsibility in Faecal Sludge Management Chains. Faecal Sludge Management Ed: Stande, Ronteltap & Brdjanovic,
IWA Publishing, UK.

UN (2015) https://sustainabledevelopment.un.org/content/documents/9789CRT046599%20SDG_Financial%20Services_29sep_WEB-1.pdf Last accessed: 07/06/2017

This lecture is based on the draft journal paper: Development and Validation of a Financial Flow Simulator for the Sanitation Value Chain by C. Furlong, F. Zakaria & D.
Brdjanovic
Financial Flow Simulator : eSOSView ©
Claire Furlong
IHE Delft

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