Resource information
The use of irrigation in the
agricultural sector, when combined appropriately with other
inputs, has been key to increasing the productivity of
agricultural production around the world - a vital factor in
helping governments to manage the growing demand for food
caused by demographic pressures and changing dietary habits.
Governments, increasingly, are seeking to address the
complex issue of targeting investments and improving the use
of scarce water resources in irrigation for agriculture to
achieve growth and rural development. Understanding how to
design and manage this sub-sector optimally is necessary if
market forces are to succeed in improving the performance
and sustainability of irrigation systems. Bringing private
participation into this sector is complicated. It is
necessary to develop a better understanding of whether and
how the private sector can deliver better service. The
system needs to be designed in a sustainable manner, not
only from an engineering and environmental perspective, but
also in terms of operations and maintenance, including
linkages (if any) between production and capital investment.
Most importantly, the right incentives need to be created
for the private sector, farmers, public agencies, and others
to perform together to achieve a sustainable scheme for
everyone. Critical to the design of irrigation
public-private partnerships (PPPs) is the way construction
is made, how investment is recovered throughout the life of
the scheme, and the manner by which agricultural offtake is
linked to the scheme. In addition, the challenge of the
co-existence between agricultural businesses and subsistence
farmers needs careful consideration to ensure long term
viability but also to protect those most vulnerable and
provide the right conditions for long term sustainability
and economic development with equal opportunities for all.
Flexibility in bidding to allow financial close and, most
importantly, rethinking the manner of government support -
both financial and regulatory - will be key to foster the
development of PPPs in irrigation.
