Dr. Muhammad Ashfaq Dr. Ifran Ahmad Baig

Transcription

1 Dr. Muhammad Ashfaq Dr. Ifran Ahmad Baig

2 Sequence of Presentation Background and Existing Situation Consumption pattern Existing situation Future scenario Key issues Water efficiency Recommendations

3 Background & Existing Situation

4 Agriculture: Back bone of economy Agriculture is the main player of the economy of Pakistan with 21% contribution to GDP and more than 44% contribution in labour force Pakistan s agriculture rely heavily on irrigation. Pakistan has the world s largest contiguous irrigation system Pakistan ranks 4 th in the world as for as irrigated area ( About 7%) is concerned. About 36 MA( About 75% of the cultivated area) in Pakistan is irrigated land. Pakistan has invested heavily in the irrigation sector. Allocated about $ 8 billion in this sector upto the year Irrigation: Life blood of agriculture 4/14/2012 4

5 Surface Water Resources Total Inflow is 171 BCM Tarbela (10.38 BCM ft), Mangla (5.90 BCM ft) 48 Canals (61000 km), 19 Barrages 1,70,000 Watercourses (1.6 Million km) Water Resources of Pakistan Rainfall Annual rainfall (125mm in South-East to 750mm North-West) Total water generated by rainfall is around 32 BCM Contribution to crops is 10-20% Groundwater Exploitation of Groundwater is 59 BCM Over 9,00,000 private tubewells 40% of total supply at farm-gate

6 Consumption Pattern of Water

7 Freshwater availability scenario (Per person) Global ,800 cubic meters per annum ,800 cubic meters per annum Reduction: Pakistan 60 % in 50 years ,300 cubic meters per annum ,200 cubic meters per annum!!!! Reduction: 77 % in 50 years Critical limit 1,000 cubic meters per person per annum

8 Existing Situation Water is becoming scarce with each passing day. Per capita availability of fresh water in Pakistan has decreased by about 80% since Efficient and judicious use of the irrigation water is the only sustainable option left with us. Surface water is still the largest source of irrigation in Pakistan (31% as a single source) Irrigation system is over burdened and loosing its efficiency due to increasing gap in actual and required O&M expenditures (Actual O&M expenses made only about 20-30% of required expenses) Govt. has to subsidize major portion of the O&M expenditures (about 70% according to an estimate)

9 Future Water Scenario Year Population Water availability (Million) per capita (m 3 )

10 Irrigation sector in Pakistan is facing major problems. What are the issues and root causes??? 4/14/

11 Losses at different levels Location Main and Branch Canals Delivery at Head (MAF) Loss % age MAF Disty. And Minors Watercourses Fields Crop Use 41 Total The additional irrigation water requirement at farm gate has been estimated at MAF, which is MAF at canal head (PWSS 2002). Which we can save even if we save water at water course level 30% 4/14/

12 Vicious Circle Neutral/ anti- poor (No significant antipoverty impacts of irrigation) More pressure on public resources Low crop productivity/ low returns from farming User dissatisfied/ Unwilling to pay Inadequate budgetary allocations/lack of funds Inefficient management & planning/ inadequate skills Lack of accountability & transparency Poor service delivery Poor management Poor system performance Poor infrastructure Lack of community participation Low cost recovery/ inadequate finances for O&M Inappropriate policies Under funding of irrigation Inappropriate institutions Inappropriate governance & 4/14/2012 management 12

13 Problems and causes framework Better Productivity And socio- economic conditions Irrigation services Productivity Poverty Improved Management Efficiency Equity Improved cost recovery Investments/ New infrastructure Mega projects Infrastructure Technology Institutions Investments in New technology Management New institutions New institutions New practices Research/ new Technology & transfer Institutional reforms Financial reforms Change in struc -ture & level of ISC Farmer s partici -pation Incentive system Laws and regul -ations Financing Impact analysis

14 Summing up - key Issues 1. Poor cost recovery (Abiana collection) 2. Poor operation and maintenance (O&M) 3. Low efficiency in the delivery system 4. Inequity in water distribution 5. In-efficient Institutions 6. Weak management 14

15 Meeting the Water Stress Challenge in Agriculture Water conservation (raised bed furrow technology, rain harvesting etc.) Efficiency options (sprinkler, trickle, drip etc.) New Storages for Regulation of supplies Supply and Demand Management Addressing water Rights entitlements Managing the Management Nexus (Assets management etc.) Institutional and financial reforms

16 Water Charges and Cost Recovery: Few Important Questions to Answer Does the level of water charges have any effect on cost recovery? Whether level and structure of water charges do have any effect on the water use efficiency and equity issues? Whether level of water charges have any impact on the cost recovery rate? Whether level of cost recovery has any relationship with O & M of the entire irrigation conveyance system? Do institutional / financial reforms in irrigation sector do have any impact on the cost recovery rate, O & M of the system, water use efficiency and productivity? Whether the existing design of the irrigation reforms suits local conditions?

17 Structure, Assessment & Collection of ISC: Where is the Problem Revenue Dept. at provincial level Transfer of funds to PID PID Transfer of funds from Dist. govt to Provincial Dept Revenue Dept. at Dist level under Dist. govts No farmer s participation at any level Collection of aabiana By Revenue Patwari Determination Of water charges Assessment of aabiana at farm level by Patwari Political pressure Equity concerns Ease of adminis. Lack of interest No incentives Rent seeking behavior of officials

18 Comparison of charges and charging schemes in different countries Countries Charging Scheme Cost recovery Cost recovery rate Issues/Comments Pakistan Syria $ 0.6 per acre inch to $ 3 per acre inch for different crops $ 110-$190 for permanent irrigation About 35%, govt. subsidies cost of O&M Fee for investment cost recover in 30 yrs, Flat fee represent O&M part Cyprus $ 0.108/m 3 Volumetric pricing. goal is to cover 38% of weighted cost Morocco $0.02/m 3 to $0.053/m as per irrigation method Turkey $22.3 to $76.7 depending upon crop and irrigation method Mexico Av. $ 40/ha, determined by WUA 100% of O&M cost to be covered from beneficiaries Capital cost upto 10 yrs, O&M cost for previous year* User pay 85% of O&M, govt 15% 52-60% ISC have little impact on efficiency and cost recovery 90% of O&M cost 34% of weighted cost Govt has not large networks, wells cover 59% of area Calculation of weighted cost is responsibility of govt. 58 to 70% Drought effects recovery rates 55% to 93% depending upon the system Low capital cost recovery and no inflation adjustment 90 to 100% Transfer prog raised charges(39 to 80%) (Source: Dinar & Mody 2004)

19 Irrigation Water Efficiency at Different Levels Three levels of water use efficiency Higher level irrigation efficiency (i.e upto canal level) Distr. and water course level efficiency Field level application efficiency ( farmer field) Effect of water charge on water demand is minimal upto a certain level of water charges (Sahibzada 2003, Zeid 2001, Perry 2001) This specific charge level differs in different economies (Cornish et al 2004). In case of Pakistan it is should at least be the cost of ground water( 9-10 times costly than surface water at present rates) Irrigation cost recovery can play a very important role in proper maintenance of the conveyance system (about 38% of total water lost from dist. to water course) 4/14/

20 Equity Different concepts of equity 1. Equity in income distribution But some studies suggest that water pricing schemes has very little or no effect on the redistribution of income between poor and rich (Tsur & Dinar 1995) 2.Equity in terms of equitable charges with regard to the services (Sampath 1992) The recovery of the irrigation cost is one of the sub-goal of the equity function along with subsidizing food production and redistribution of income (Seagraves and Easter 1983) Convincing evidence and strong arguments in several recent studies that irrigation performance has significant relationship with poverty alleviation (Hussain and Wijerathne 2004) Cost recovery and level of irrigation charges have been considered as the main factors behind improved irrigation service delivery. 4/14/

21 Linkages between irrigation, irrigation charges and poverty alleviation More poverty at down stream than at middle and upstream reaches of the irrigation system (Hussain 2005) The situation is worse where there is no or little access to surface water and ground water quality is poor (Hussain 2005) Households with larger operated areas have lower yields and are less productive and land inequality leads directly to lower productivity (World bank 2002) Due to high inequalities in land and water distribution, direct benefits of irrigation subsidies are mostly enjoyed by large farmers (Hussain 2005) Small farmers pay more some times directly and often indirectly (Hussain 2005) Incremental benefits derived from enhanced ISC to cover O&M can lead to a better productivity and income status for the poor farmers in the area (Hussain 2005, Small et al 1989) 4/14/

22 Quick Look at Existing Design of Reforms: Pakistan s Perspective Existing water charges level do not have any impact on water use efficiency. Existing O & M system does not promote equity in water use distribution. Existing level of water charges, system of collection and O & M of the system do not promote cost recovery considerably Intuitional reforms have positive impacts on the cost recovery ration, O & M of the system and distribution equity in the short-run Long-run sustainability of these reforms is still a question

23 Policy Recommendations Assessment of water charges should further be adjusted according to the area specific conditions Farmer Organizations have shown good performance in cost recovery and in expenditure minimization. There is need to strengthen their role with comprehensive legal coverage Proper system of incentives and penalties need to be implemented immediately Education plays an important role in the success of participatory programs. Stakeholders of the new system should have a sound capacity building through continuous support from PIDA Role of WUAs in financial matters and irrigation management should be enhanced and strengthened Sustainability of the irrigation reforms could be insured through: More active participation of the farmers from across the system Involvement of these new institutions in the productivity enhancement programs Support from the PID and other allied departments Designing area specific reform process

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