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Technical Paper 11
1996 FAO Investment Centre
Food and Agriculture Organization of the United Nations
Table of Contents
Why New Guidelines? Objective and Organisation of the Guidelines Complementarity with Previous Investment Centre Guidelines and Papers
2 3 4
Part 1: Recent lessons and implications for planning
Irrigation in the Context of Water Resources Management Irrigation Types and the Issue of Scale Irrigation Typologies The Issue of Scale Irrigation, Food Supply and Drought Options and Alternatives for Food Supply Rainfed Production of Food as an Alternative to Irrigation New Irrigation Development Intensification of Existing Irrigation Development Low Cost Irrigation Irrigation and Protection from Drought
5 6 6 9 11 11 11 12 13 14 15
Table of Contents
Effective Implementation Implementation Capacity and External Technical Assistance Participation, Ownership and Commitment A Possible Role for Non-Governmental Organizations (NGOs) in Participatory Development Fiscal Sustainability The Need for Cost Recovery Cost Recovery, O&M and Water Charges Users’ Contributions to Capital Costs Water Users’ Associations Water Users’ Associations and Transfer of O&M Responsibility Conditions for Sustainability of Water Users’ Associations Social and Environmental Aspects Choice of Technology The Drainage Dilemma Implications for the Planning Process To summarise, there is growing recognition that:
15 16 17 19 20 20 21 22 24 24 25 28 29 30 31 31
Part 2: The planning process
General The Conventional Planning Process Recent Trends: The Changing Investment Environment The Changing Role of the Investment Centre
34 34 34 35
Table of Contents
Subsector Review and Strategy Formulation Objectives, Approach and Staffing Required Main Topics for a Subsector Review Existing Irrigation Development, Structure and Performance Land and Water Resources and Scope for Further Irrigation or Drainage Development Financial and Economic Viability of Irrigation Government Policies, Priorities and Plans Subsectoral Issues and Constraints Strategy Formulation Defining Strategic Options and Measures Identifying Priority Actions and Projects Building Commitment to the Strategy The Irrigation Subsector Review and Strategy Paper Conceptualising and Comparing the Investment Options Objectives General Approach to the Work and Staffing Required Activities Review of Available Database Reconnaissance Field Visits Topography, Soils and Land Capability Assessments Preliminary Estimates of Irrigation Water Requirements for Possible Crops Preliminary Assessment of Available Water Resources Preliminary Assessment of Drainage Requirements Preliminary Assessment of “Without-Project” Socio-Economic Situation
36 36 37 38 38 39 41 41 45 45 48 49 49 49 49 50 51 51 53 53 54 55 56 56
Table of Contents
Initial Environmental Evaluation Preliminary Evaluation of Institutional Capacity Comparisons of the Likely Costs and Benefits
Estimates of Project Benefits Preliminary Cost Estimates Preliminary Cost-Benefit Analysis
56 57 58
59 59 60
Initial Project Brief Achieving Consensus on Investment Concepts and Options Planning the Preferred Option Objective and Approach Activities for Planning the Preferred Option Engineering Studies Soils and Land Capability Studies Agricultural and Marketing Studies and the SEPSS Environmental Impact Assessment and Action Plans Land Tenure and Water Rights Investigations Institutional Capacity Assessment Estimation of Project Costs and Benefits
Estimates of Project Benefits Estimates of Project Costs
60 61 62 62 67 67 70 70 72 72 73 78
Economic Rate of Return Risk and Sensitivity Analysis Effect on Balance of Payments Income Distribution, Social Impact and Poverty Alleviation Fiscal Implications and Cost Recovery
79 81 82 82 82
Planning for Implementation The Project Dossier Achieving Consensus on the Project Proposal
83 84 86
Table of Contents
Annex 1: Checklist for contents of an irrigation subsector review and strategy paper
Introduction (1 to 2 pages) National Background (2 to 3 pages) The Resource Base (2 to 5 pages) The Irrigation Subsector: Present Situation (10 to 15 pages) Financial and Economic Viability of Irrigation (5 to 10 pages) Opportunities and Constraints to Irrigation Development (1 to 2 pages) Government Priorities and Plans (1 to 3 pages) Strategy for Irrigation Development (5 to 10 pages) Development Proposals (1 to 4 pages) Immediate Actions and Follow-up (1 to 3 pages) Issuaes and Risks (1 to 2 pages) Flow Charts and Logic Diagrams Maps Annexes
101 101 102 102 104 104 105 106 109 110 111 111 111 111
Annex 2: Outline of a typical project document or dossier
Summary and Conclusions (2-4 pages) Introduction (1 page) Background (3-6 pages) A. The Economy B. The Agricultural Sector
113 113 113 114 114
Government Subsectoral Policies and Plans F. Support Services and Infrastructure The (Name) Irrigation Scheme: Present Status (3-6 pages) A. Present Arrangements for O&M and Cost Recovery H.Table of Contents vi C. Infrastructure and Farmers’ Organisations E. The Economy and People D. The Economy and People C. Income Distribution and Poverty E. Present Irrigated Agricultural Production F. Environmental Impact of the Existing Scheme 114 115 115 115 116 116 117 119 120 121 121 121 121 122 122 122 123 123 . Location and Natural Resources B. Present Condition of Irrigation Facilities G. The Irrigation Subsector D. Existing Agriculture. The Financing Institution’s Previous Operations and Experience The Project Area (3 to 6 pages) A. Location and Natural Resources B. Description of Existing Facilities C. Land Use and Land Tenure D. Rural Institutions. Rural Services.
Project Costs G. Cost Recovery and O&M E. Detailed Features C. Market Prospects and Prices C. Project Organisation. Economic Costs and Benefits B. Financing Agricultural Production and Results (4-6 pages) A. Planning Considerations The Project (Or Programme) (5-10 pages) A. Management and Coordination D. Project Rationale B. Institutional Capacity Building F. Impact on Individual Producers D. Agricultural Production B.Table of Contents vii Existing Institutions and Project Implementation Capacity (3-6 pages) Project Rationale and Planning Considerations (3-6 pages) A. Risk and Sensitivity Analysis 123 124 125 125 127 128 128 131 132 133 134 138 139 139 139 141 143 143 144 145 146 . General Description B. Impact at Project Level Social and Environmental Implications (2-4 pages) Economic Justification (3-6 pages) A.
Effect on Balance of Payments D. Activities for Completion in Project Year One D. Activities to Achieve Loan Effectiveness C.Table of Contents viii C. Procurement E. Impact on Income Distribution and Poverty Alleviation E. Tables and Annexes 146 146 147 147 147 148 149 149 150 150 151 152 152 Annex 3: Other documentation The Preliminary Planning Brief The Aide Mémoire Back-to-Office Reports Terms-of-Reference for Feasibility and Other Studies Interim or Initial Project Briefs 160 160 161 162 163 164 . Audit and Reporting Maps. Issues B. Commitments and Suggested Conditionalities Implementation (3-6 pages) A. Fiscal Implications and Cost Recovery Issues and Suggested Conditionalities (1-2 pages) A. Overall Implementation Schedule B. Accounting. Figures.
Table of Contents ix References and Bibliography FAO Technical Papers FAO Investment Centre Papers 166 175 175 .
Guidelines for Planning Irrigation and Drainage Investment Projects 1 Preface This Investment Centre Technical Paper was prepared by Tony Peacock (consultant). Robert Rangeley and Tony Zagni (consultants). Michael Fitzpatrick. Paolo Lucani. Lucas Horst and Frans Huibers of Wageningen Agricultural University. Peter Smith. Timothy Stephens. Senior and Principal Advisers respectively in the FAO Investment Centre Division. Alice Carloni. Brian Albinson and Donald Campbell (consultants) on behalf of the International Irrigation Management Institute. however. coordinated by Hervé Plusquellec. Michael Wales and several other staff of the Investment Centre. with technical and editorial guidance from Simon Hocombe and Andrew MacMillan. as well as Hans Wolter of the Land and Water Development Division of FAO. The paper benefited from consultations with Volker Branscheid. The Investment Centre would like to gratefully acknowledge the valuable contributions of the external reviewers. Peris Sinnett-Jones. University of London. Kingsley De Alwis. Random DuBois. Jacques Chabloz. Constructive comments were made on the draft by external reviewers including: staff of the Asian Development Bank. Any errors and omissions remain. Jan Doorenbos. Laurence Smith of Wye College. and James Dempster. staff of the Agriculture and Natural Resources Department of the World Bank. Janet Francis and Marilou Mechitarian formatted the final text. . African Development Bank. coordinated by Robert May. Linden Vincent. the responsibility of the Investment Centre. Senior Irrigation Engineer. Romano Pantanali. Orla WhiteNatalizia.
a: Report No 13676. the World Bank’s Portfolio Management Task Force reported2 that major problems that constrain the performance of World Bank financed investment projects in various sectors. and only 9. World Bank. In 1992. 1: For brevity. and for these the average outcomes were 17. Operations Evaluation Department. Washington DC. Twenty of the projects were later subjected to impact evaluation by the Bank's Operations Evaluation Department (OED).7% at appraisal. and that there is ample room for improvement. World Bank. A Review of World Bank Experience in Irrigation. (1994). it may also imply reclamation or water control generally. Even those projects rated as satisfactory indicated a substantially lower economic rate of return at evaluation (average 15%) than expected at appraisal (average 22%).8% at project completion audit. 14. However it should be taken to include drainage as appropriate throughout. 2: Effective Implementation: Key to Development Impact. only two thirds had satisfactory outcomes. the single word "irrigation" is most often used for the rest of the text.The Performance of World Bank-Financed Irrigation Investment Projects A recent World Bank review of its experience with irrigation investment projectsa found that. The Bank concluded that the initial assessment that two thirds of its projects had satisfactory outcomes may be too sanguine. Box 1 . governments and financing institutions alike (see Box 1). .3% at OED impact evaluation. Washington DC (1992). and • a lack of commitment to the success of the project by governments and users.Guidelines for Planning Irrigation and Drainage Investment Projects 2 Introduction WHY NEW GUIDELINES? Irrigated agriculture has made a major contribution to food production and food security throughout the world: without irrigation much of the impressive growth in agricultural productivity over the last 50 years could not have been achieved. Nevertheless it is widely accepted that the overall performance of irrigation and drainage1 investments has too often fallen short of the expectations of planners. Report of the World Bank's Portfolio Management Task Force (often referred to as the Wapenhans Report). of 208 Bank-funded irrigation projects evaluated. are: • inadequate consideration of institutional constraints and poor planning for implementation.
the first part (blue paper) briefly discusses the main lessons learned in recent years and their implications for the project planning process. therefore make new guidelines essential and timely. Some of the material may also be useful to consulting firms and financing institutions involved in planning or appraising such projects. or are accompanied by. land tenure. The Guidelines are divided into two main parts. The second part (yellow paper) describes the process itself. These findings are now considered generally valid by other international financing institutions and donors. or over-irrigation. the roles of the borrowers. including problems of organisation. a host of other technical. The World Bank Task Force stressed that the ultimate success of a project is to a significant degree determined by what happens in the “upstream” planning process. These core problems usually give rise to. and detailed planning of the preferred option(s). The lessons learned regarding these problems. and that many implementation problems can clearly be traced to deficiencies here. equity. if government subsidies relieve the farmer from the requirement to pay for part or all of the input. and the new approaches that have been developed to tackle them. from formulation of subsectoral strategies. lenders and planning teams in it. • social problems. • lower than expected output values. • unreliable water supplies. waterlogging and salinity.Guidelines for Planning Irrigation and Drainage Investment Projects 3 In the case of irrigation investments these problems are manifested in poor project management. • premature degeneration of civil works and equipment. OBJECTIVE AND ORGANISATION OF THE GUIDELINES The objective of these Guidelines is to summarise present thinking and practice. Economic rent can be earned even in the case of an activity that is socially unprofitable. The intended users are FAO Investment Centre staff. Guidance covers the whole investment planning process. and poor operation and maintenance resulting from inadequate budget allocations or from rent seeking1 by the users. both at implementation and thereafter. due to poor technical performance or reflecting inaccurate price projections by planners. to conceptualisation of project options. ie uneconomic. . such as: • implementation delays and cost overruns. and the 1: Economic rent is the income earned from the use of an input (in this case water) in excess of its cost. trainees and consultants. social and economic problems. as well as local planning groups (LPGs) set up by governments to prepare investment proposals. and to assist practitioners to plan irrigation investment projects and programmes that will realise and sustain their full potential. Following this introduction (white paper).
including both new and perennial issues in irrigation planning. 1: For example Donald Campbell. With regard to Investment Centre standards for report format. which are covered in numerous FAO. The following Investment Centre Technical Papers complement and should be read in conjunction with these Guidelines: • Technical Paper 7: Guidelines for the Design of Agricultural Investment Projects (1993. Numerous other sources are listed in References and Bibliography. Design and Operation of Smallholder Irrigation in South Asia.Guidelines for Planning Irrigation and Drainage Investment Projects 4 activities and outputs expected. the format may instead need to conform to that of the institution concerned. Relevant technical papers produced by other FAO Divisions are referred to where appropriate in the text. the reader’s attention is drawn to a forthcoming Investment Centre publication Building Local Commitment During the Design of Agricultural Investment Projects: The Experience of FAO’s Investment Centre. World Bank and other papers1. a draft of which was circulated for comment in March 1995. Brief descriptions of other documentation that might be required during the planning process are given in Annex 3. Annex 2 provides an outline for a typical project dossier. to be fully comprehensive. In addition. Thus Annex 1 gives a checklist for a typical report on an irrigation and drainage subsector review/strategy formulation. reference should be made to the in-house Guidelines for Report Format. World Bank Technical Paper 256. World Bank. however. It deliberately focuses on new thinking and new approaches to the planning process. • Technical Paper 9: Guidelines on Sociological Analysis in Agricultural Project Design (1992). • Technical Paper 8: Financial Analysis in Agricultural Project Preparation (1991). most of the purely technical content of that document remains valid and is repeated where appropriate in Annex 2 of these Guidelines. at the end of the document. for use by a financing institution for project appraisal. although if it is intended to use any part of a report in an appraisal report of a financing institution. . The remainder of the document (white paper) presents checklists which seek. Washington DC (1995) which addresses most of the technical and operational issues and problems arising in irrigation/drainage system design. rather than the now wellestablished stock-in-trade technical aspects of irrigation planning. revised 1995). COMPLEMENTARITY WITH PREVIOUS INVESTMENT CENTRE GUIDELINES AND PAPERS These Guidelines update the 1984 paper Identification and Preparation of Irrigation Projects produced by the FAO/World Bank Cooperative Programme.
as populations expand and economies grow this competition will intensify. Planners should seek to establish the conditions that will promote this focus. Hence governments and financing institutions are being forced to reconsider the economic. or between countries where such competition transcends international borders. The main lessons are that water is an increasingly scarce resource for which there are many competing demands that are more profitable. on making better use of existing irrigation facilities and on increasing output value per unit of water used. it is pertinent to examine recent lessons learned from experience and their implications for future planning. world food supply will depend even more on irrigation in the next century than in the present. together with typically high development costs. As a result. in the World Bank Policy Paper Water Resources Management.more than 80 percent. both for new development and rehabilitation. have recently made new irrigation development increasingly difficult to justify. FAO. Even so. IRRIGATION IN THE CONTEXT OF WATER RESOURCES MANAGEMENT In recent years. a unit of water than agriculture. More than two thirds of the water withdrawn from the earth’s rivers is used for irrigated agriculture. But agriculture is a relatively low-value and often highly subsidised water user. World Bank. than irrigation. socially and economically. . Future irrigation investment must therefore focus on lower cost solutions. as will conflicts between water users. social and environmental implications of investment in irrigation. it is likely that in future the water sector will be less 1: The background to this is described. Cities and industries can afford to pay more for. water issues have been the focus of increasing international concern and debate1. Washington DC (1993) and in Land and Water Bulletin 3 Water Sector Policy Review and Strategy Formulation: A General Framework (prepared jointly by the World Bank. also that low world prices for basic food and fibre crops.Guidelines for Planning Irrigation and Drainage Investment Projects 5 PART 1: Recent lessons and implications for planning Since the ultimate success of an investment is largely determined by the quality of the upstream process of planning. in developing countries the proportion is even higher . Rome (1995). and earn a higher economic rate of return from. for example. UNDP and FAO). Competition for water with other sectors is already constraining economic development in many countries.
since. as a precondition to lending for irrigation. In countries with significant water management problems. institutional and other policy interventions to influence the demand for water in order to improve the efficiency of its use. Water Report 6 Methodology for Water Policy Review and Reform (Proceedings of the Expert Consultation on Water Policy and Reform . legal. Numerous typologies are commonly used. Rome (1995). The 1993 World Bank policy paper Water Resources Management crystallises much of the present thinking of governments and financing institutions with regard to the overall management of water resources. and that investment finance could be made available for its development. 1: See for example: Land and Water Bulletin 3. which are well covered elsewhere1. UNDP and FAO). including demand management. many of the problems confronting publicly financed irrigation transcend scale.that is to say the use of economic. Definition by size presents difficulties on a global level. for example. The implication is that loans for irrigation development will not be made where this will prejudice other more profitable or socially desirable uses of water. Irrigation and Drainage Paper 52 Reforming Water Resources Policy: A Guide to Methods. January 1995). Furthermore. . and in some countries water formerly used for agriculture is already being reallocated for higher-value uses. FAO. and whether schemes are operated publicly or privately. such as size.Guidelines for Planning Irrigation and Drainage Investment Projects 6 dominated by irrigation. Processes and Practices. the nature of the water source. Water Sector Policy Review and Strategy Formulation: A General Framework (prepared jointly by the World Bank. Rome (1995). It calls for new approaches. the international financing institutions increasingly require the preparation of water resources management strategies to guide the lending programme in the water sector. FAO. . IRRIGATION TYPES AND THE ISSUE OF SCALE Irrigation Typologies With about 250 million hectares irrigated throughout the world in vastly different climatic and socio-political environments. These Guidelines however start from the assumption that water policy reviews have indicated that irrigation is a justifiable option within the context of a country’s overall water resources management strategy.Rome. The Guidelines therefore do not cover the principles and processes involved in water resources management strategy formulation. some categorisation of irrigation may be thought desirable. Rome (1995). and some attempts at categorisation have confused “small-scale” with “traditional” or “informal” irrigation. The need for project planning to be in strict conformity with such strategies nevertheless cannot be overemphasised. FAO. what might be considered large-scale in some countries in Sub-Saharan Africa would be considered as only small or medium-scale in South Asia.
for example. field-to-field irrigation is acceptable because a down-catchment farmer will often use what an up-catchment farmer wastes. it is dominant where water is cheap and plentiful. irrigation could perhaps be categorised globally as either public or private. but in each case these are initiated and developed under public authority and control. joint ventures between government and quasi-government financial institutions. which comprise more than half of the world’s irrigation. for sugar cane production). Irrigation systems designed for other crops do not usually suit rice very well. . The design and operation of a rice-growing irrigation system is significantly different from that for other crops: rice fields are waterlogged to reduce the weeding requirements. Even this is difficult to define precisely. rather than the usual categorisation by scale. and large-scale through to small-scale smallholder irrigation schemes set up under government authority. and non-rice schemes. as total inundation of the crop leads to significant yield losses. notably in the humid eastern side of South Asia eastward through to Japan and Indonesia.g. Nevertheless. down to very small schemes of 10 ha or less. This definition includes for example stateowned large-scale estates (e. Once the crop is established rice schemes usually receive a small but continuous flow to maintain flooded conditions. and operated and maintained in the same way. maize and especially cotton will die under these conditions1. For the purpose of these Guidelines. 1: Rice schemes nevertheless require adequate surface drainage. Public irrigation may range in size from schemes of hundreds of thousands of hectares. From the technical viewpoint. and small community-managed tank irrigation schemes in Sri Lanka. and vice-versa. since the share of public versus private resources can vary widely between schemes. and control over the operation of.Guidelines for Planning Irrigation and Drainage Investment Projects 7 Definition by the type or nature of the water source does not recognise the very different characteristics of major public surface water schemes based on dams in the USA. public irrigation is defined here as any irrigation in which government has the dominant financial interest or management responsibility/control. because of their fundamentally different characteristics. private irrigation can be defined as any irrigation in which farmers (or a private sector group) have the dominant financial interest or management responsibility/control. Conversely. Since the rice plant tolerates waterlogging and needs much more water to thrive than almost all other of the major irrigated crops. Non-rice projects are generally found in the drier or cooler parts of the developing world. ie by the degree of endusers’ commitment of resources to. the system. a further distinction can be made between rice schemes. whereas crops such as wheat.
• in private irrigation. Public irrigation therefore tends to be supply-driven and may incorporate political or social objectives. This category would include for example localised1 irrigation systems of 1-2 ha in extent. the survival strategy of the poor.g. from small plots of paddy in South-East Asia. operate and maintain. drip or micro-jet. . Some of these systems are hundreds of years old. communities. the swamp and flood recession areas with partial water control in Sub-Saharan Africa. families. contribute at least a part of the capital costs. operated and maintained by individuals. vegetables or fruit. Thus farmers must be involved in the planning decisions. operated and managed by individuals or privately owned companies. and privately owned sugar estates. tank irrigation systems elsewhere in South Asia. for the production of flowers. implement. qanat systems in Iran. in which case they are often referred to as traditional irrigation. with units ranging in size from a few hectares to several thousand hectares. the planning and investment trend in publicly financed irrigation is to emulate those characteristics of private irrigation that make it generally self-sustaining. Examples may be found throughout the world.Guidelines for Planning Irrigation and Drainage Investment Projects 8 It includes: • Farmer-managed irrigation schemes (FMIS) of a few hundred square metres to a several thousand hectares. developed. Afghanistan and Pakistan. even though government may sometimes facilitate development or provide incentives. 1: e. farmers take their own investment decisions. The features that make successful private irrigation self-sustaining should if possible be emulated in planning public irrigation investments. financed. and generally for the production of basic food or fibre crops and vegetables for local markets. As will be seen. at times. or local rulers and landowners. and accept full responsibility for operation and maintenance (O&M). to spate irrigation systems in Southern Arabia. finances and implements. These characteristics impinge on many of the basic decisions for development planning and imply fundamental influences on the investment approach. and carry the risks. and in most cases farmers effectively receive a subsidised service. The most important differences between public and private irrigation as defined above are that: • in public irrigation it is the government that plans. pay. to larger overhead or surface irrigated schemes for the production high value field crops such as tobacco. while private irrigation is demand-driven and reflects financial objectives or. shallow tubewells in the Indo-Gangetic Plain. • Commercial irrigation. independently of government.
Guidelines for Planning Irrigation and Drainage Investment Projects 9 The Issue of Scale According to a recent World Bank review of its experience in irrigation1. efficient operation and adequate and timely maintenance. community-based organisations. scattered over a wide area. operate and manage large schemes. where there is a lack of capacity to plan. and should therefore enjoy better prospects for sustainability. Many of the arguments are valid in some countries. There are numerous other arguments for and against large or small irrigation schemes: for example. attention should focus on smaller developments. individual farmers. World Bank. Washington DC (1994). there are many examples of the development of small public irrigation systems. be easier to organise. As will be seen. financing institutions. for certain irrigation types. On the other hand. larger developments should encourage more Government support. that have overstretched the logistical and staffing capabilities of irrigation agencies and have eventually failed. quality construction. operation and management. non-governmental organisations. Nevertheless. Operations and Evaluation Department. senior decision-makers. public interest groups. there are more important issues than scale: the overwhelming experience is that what is important in predisposing irrigation to success is the extent to which it enjoys the commitment of stakeholders2 to good engineering design. (NGOs) and private sector companies.are still relatively weak. including water users' associations (WUAs) or other farmers' organisations. 2: The term stakeholders includes all individuals who may be positively or adversely affected by the project: government planning agencies (planning units. Smaller schemes are more conducive to farmer management and control. . In theory.public or private . judged in terms of sustained economic internal rate of return (ERR). generalisation should be avoided and the issue of scale should be approached considering the individual circumstances of the project and institutional capacities in the country concerned. implement. there is no evidence to suggest that small-scale irrigation is more or less likely than large-scale to achieve success. and international project planning teams such as those provided by the Investment Centre. Thus. 1: Report No 13676: A Review of World Bank Experience in Irrigation. Ministers). and market limitations for the crops produced often make such schemes the only viable choice. it can be argued that where irrigation institutions . but not in others. attract better management. government implementing and operating agencies (senior and middle level management of line ministries) who may be subsequently responsible for project implementation. the obvious economies of scale and multiplier effects of large schemes (see Box I-1).
Large versus Small Irrigation Schemes Large Scale For: Engineering economies of scale usually possible. such as displacement of settlements or disruption of wildlife habitats. operating and maintaining. Often quick yielding. Borrowers more disposed to take the actions necessary to ensure that project succeeds. Against: Demand for high level professional skills and institutional capacity in planning. Economies of scale result in costeffective provision of extension services and social/economic infrastructure. Small Scale For: Usually less exacting technical demands for high level professional skills for planning. scope for farmer management limited to tertiary system. Better adapted to supplying local markets with (high value) horticultural products without depressing prices. implementing. Relatively simple organisation and management. implementing. hence lower unit costs. operating and maintaining. Smaller risk of irreversible adverse environmental and social impacts Against: Diseconomies of scale sometimes result in relatively longer period required to plan and implement (per ha developed). hence greater recurrent cost burden to government or other central authority. financing. Greater opportunity for farmers to participate in planning. extension coverage and provision of social and economic infrastructure. Greater regional impact of secondary benefits. Easier physical planning of contiguous blocks than scattered areas. Greater potential for irreversible adverse environmental and social impacts. .Guidelines for Planning Irrigation and Drainage Investment Projects 10 Box I-1 . Relatively complex organisation and management requirements. Longer period required to bring complete project into production. operating and maintaining. Fragmented distribution results in more difficult logistics for implementation. implementing.
In the less well-endowed areas particularly. . before contemplating further irrigation development the potential for increased food output from rainfed areas should be considered. FAO. 1: See Soils Bulletin 57: Soil and Water Conservation in Semi Arid Areas. Rome (1995). Washington DC (1993). Rainfed Production of Food as an Alternative to Irrigation Although between 30 and 40 percent of the world’s food at present comes from the irrigated 20 percent of total cultivated land. World Bank. with a risk of increased deforestation. FAO. and the adoption of integrated pest management (IPM) and integrated plant nutrient management (IPNM) strategies. Land and Water Division. also Technical Paper 221: Conserving Soil Moisture and Fertility in the Warm Seasonally Dry Tropics. supply can be expected to depend to an even larger extent on irrigation in the next century than it has in this. Hence. the potential for stabilisation or intensification of existing rainfed production by increased use of agrochemical inputs is also technically limited: either the possible gains have already been achieved. These are discussed below. or they are unlikely to be achieved because of aversion by farmers to the known risks of investing in improved inputs in marginal rainfall areas. the options for meeting the consequent incremental demand for food need to be considered. be relied upon to meet the entire future increase in demand for food. soil erosion and general land degradation. further area expansion of rainfed food production could increasingly involve more marginal areas. Investment Centre Technical Paper 10: Agricultural Investment to Promote Improved Capture and Use of Rainfall in Dryland Farming. even though irrigation development cannot. There may be prospects for obtaining sustainable production increases under rainfed conditions through relatively simple low cost technologies: for example improved in situ water conservation techniques1. Rome (1987). and perhaps should not. However where land resources are scarce. FOOD SUPPLY AND DROUGHT Options and Alternatives for Food Supply As populations in some developing countries continue to grow faster than increases in food production.Guidelines for Planning Irrigation and Drainage Investment Projects 11 IRRIGATION.
This is today’s challenge to irrigation engineers. Irrigation in Africa South of the Sahara. New irrigation development in these countries may therefore increasingly be justified only for the production of relatively high value crops . 2: Investment Centre Technical Paper 5. the demand for food begins to outstrip supply. In this case prices might reasonably be expected to approach the marginal cost of irrigated production. will determine the pace of investment in new irrigation. and the use of current World Bank price projections for project analyses may be inappropriate3. Rome (1986). The situation may change in the longer term if. Nevertheless. in the absence of any better alternatives. 1: Paradoxically perhaps. the analyst can do no more than attempt best guesses based on the Bank's forecasts. as world population grows. or explore possible future differences between forecast and actual prices through sensitivity analysis. FAO. and new projects could be expected to cost even more per hectare than those developed in the past.for which markets and marketing are usually constraints . the expansion of irrigation over the last 50 years has been a major factor in the decline in prices. as much as the availability of suitable sites. However. because of the decline in world market prices for these crops1 and typically high per hectare capital costs (see Box I-2. Indeed. for the foreseeable future any expansion of irrigation for the production of basic foods will only be possible if substantial reductions in per hectare capital costs of new development can be achieved. world market prices for basic food crops have recently shown signs of recovery. 3: Doubts over the use of World Bank price forecasts for food and fibre crops have often been expressed. and if this trend were to continue it could significantly alter the profitability of production of such crops under irrigation. In many countries however the better irrigation sites are already developed. . also Annex 2 of Investment Centre Technical Paper 52).Guidelines for Planning Irrigation and Drainage Investment Projects 12 New Irrigation Development Increased production through new irrigation development is nevertheless increasingly difficult to justify economically for the production of basic foods. unless lower cost technologies can be devised and introduced. In this situation markets.rather than for basic foods. since it has caused relatively strong growth in supply of rice and wheat compared with growth in demand.
has slowed to 1. over the period.7% per annum during 1958-66 (before the spread of modern technology) to 2. and that the tendency is for existing irrigation systems to perform below potential. By the mid-1980s it was less than 50% of the 1977-79 level. Aggregate lending and assistance for irrigation in Asia in the 1970s and 1980s by four major financial institutionsa reached its peak in real terms in 1977-79. growth in rice yield.Guidelines for Planning Irrigation and Drainage Investment Projects 13 Box I-2. from 3. representing a swing of a factor of 5 in the ratio of costs to benefits. Asian Food Production in the 1990s The introduction and rapid spread of high-yielding rice and wheat varieties combined with heavy investment in irrigation and rapid growth in fertiliser use in the late 1960s and the 1970s resulted in strong growth in output of these crops in Asia. Area expansion contributed about one-third of Asian rice output growth during 1966-74.9% annually since the early 1980s. Japanese Overseas Economic Cooperation Fund. a: World Bank.744 to US$4. and US Agency for International Development. the primary contributor to rice output growth throughout these periods. Asian Development Bank. the main reasons for declining investment are the increasing real costs per hectare of new irrigation development and decline in world rice and wheat prices. the rate of growth of yields increased from 1. What has caused this decline in investment? Contributing factors include the large public and foreign debt loads carried by most of the agriculturally based economies in the region. The real price of rice and wheat over this period was halved. “Food Policy”.1% in 1974-82. and political resistance from environmental interests and those displaced or otherwise negatively affected by irrigation development. February 1993. Asian Food Production in the 1990s: Irrigation Investment and Management Policy.9% during 1974-82. However. However. the declining share of unexploited irrigation development potential in many countries in the region.2% during the period beginning in 1982. it is logical to consider . Reductions in the amounts of new investments in irrigation have been dramatic. Rosegrant and Svendsen presented real capital costs for construction of new irrigation systems in five countries in South and SE Asia over the period 1966-88. Similar trends have occurred with wheat output. Source: Mark W Rosegrant and Mark Svendsen (1993). For rice. The annual growth rate in rice output therefore declined in the 1980s. but little after that.385 per ha.5. to 2. the unweighted average for which increased by a factor of 2. Intensification of Existing Irrigation Development Given that the cost of new irrigation development for food production is increasingly difficult to justify. from US$1.
Upgrading usually calls for engineering. Thus. and upgrading. economic and sociological analysis to arrive at solutions. of large areas of informal or traditional irrigation. . They make efficient use of scarce water. other opportunities exist for low cost irrigation. but are in general unsuited to large scale food production1. taking advantage of sunk costs to achieve incremental production at low incremental cost. have been developed on the initiative of farmers rather than governments. often linked to management transfer to the users (see Chapter 7). which is simply deferred maintenance. the scope for obtaining increased food production from these systems could be significant. and other similar devices. and is often easily justified by the incremental production that can be achieved as a result. which involves making existing schemes work better. Traditional irrigation systems are often characterised by poor water control.Guidelines for Planning Irrigation and Drainage Investment Projects 14 intensification and increased output from existing systems. 1: There are exceptions to this rule: one such system has been satisfactorily demonstrated for the irrigation of cassava in some Sahelian countries. In many cases improved water control can be achieved at comparatively low cost. and have continued their existence in the same way. it must also be noted that the most important feature of these systems is local initiative. responsibility and control. in various parts of the world. and consequent low cropping intensities and yields. The identification of opportunities for such improvements may therefore be a priority for planners. by definition. Sectoral loans aimed at such improvements have become an important part of the portfolios of the financing institutions. are often nutritionally important for local communities because they are generally used for fruit and vegetable production. The investment emphasis in recent years has therefore shifted towards improving the latter. Apart from traditional irrigation systems. including systems based on the use of clay pots for the storage and gradual release of irrigation water. However. These. These. particularly for localised irrigation. It is important here to note the important distinction that has been made between an endless cycle of rehabilitation. proposed improvements should avoid inadvertent transfer of responsibility to government. given that in some countries the area under traditional irrigation far exceeds the area under formal irrigation. Low Cost Irrigation The above discussion focuses on irrigation development in formal systems and takes no account of the existence.
although at first sight there would appear to be no apparent alternative for improving local food security. • commitment to the project. Policy assumptions that automatically equate irrigation development with the elimination of drought risks in such areas should be regarded with caution. In other areas subject to repeated and prolonged droughts. Here the value of irrigation in “drought-proofing”. Further research is necessary. aimed at developing viable technical packages that consider the recurrent drought cycle. including opportunities for non-farm rural employment. is undoubted. It could therefore be argued that in these circumstances irrigated agriculture is more vulnerable to drought than some less intensive forms of agriculture. its development cost nowadays will often only be justified by high value crops. built on stakeholder participation and local ownership. rural poverty and food insecurity. Thus. Other factors. irrigation development in these areas may not be a fully effective means to combat recurrent drought. quick fixes for these problems. Moreover. These have limited markets and will bring primary benefits to only a few of the people normally at risk. by creating greater yield stability and outof-season food production. irrigation does not always provide full insurance against drought. even where irrigation potential remains unexploited in these areas. There are unfortunately no easy. EFFECTIVE IMPLEMENTATION Experience to date. sound construction and financial viability for the users are of course equally important. well summarised in the 1992 report of the World Bank’s Portfolio Management Task Force referred to earlier. northeast Brazil or southern and eastern Africa. . In much of Sub-Saharan Africa for example rivers and dams dry out and groundwater levels drop in years of recurrent drought. such as good technical design. makes it clear that a key condition for sustainable development impact from irrigation investments is implementability. despite its superficial appeal. But experience indicates that in the past irrigation professionals have often underestimated the attention which also needs to be given to implementability. such as the Sahel.Guidelines for Planning Irrigation and Drainage Investment Projects 15 Irrigation and Protection from Drought In many regions of the world the major river systems have their headwaters in high rainfall or snowmelt areas and flows are relatively insensitive to droughts in agricultural areas downstream. This requires: • that the implementation requirements of the project are matched to local institutional capacity.
rather than indiscriminately as often in the past. for one. Harare. He said very scant attention was paid to appropriate project design. “It (technical assistance) is not welcome. or at least as fast. This has got to stop. If necessary the project scope and content may be reduced to match existing implementation capacity. detailed start-up and implementation plans have generally been considered as beyond the ambit of the identification/preparation teams’ work. I am including the World Bank .. an endemic problem in the donor community . Mr Jaycox said to alleviate Africa’s capacity building problems.. In the conventional planning process. Technical assistance frequently then crowds out any local capacity. He charged that resident expatriate technical assistance officials were systematic destructive forces. .expatriate management substituting for domestic management”. Technical assistance can then be applied selectively. thinking that will bridge the gap. Well. except on the donor side. Money and technical assistance is then provided to bridge the gap. The planning process should therefore give specific attention to an analysis of institutional capacity. “The donors and African governments together have.. including the World Bank. are fast destroying the development capacity of Africa due to conditionalities tied to their aid. When I talk about donors. This is in fact.” he said. I. They are undermining it faster than they are building it. there was a need to create a demand for professionalism on the continent. the World Bank vice-president for Africa region has said and warned that this could defeat the continent’s economic recovery programmes. in effect. which implies that planning teams should first acquire a thorough appreciation of this capacity. it has not and I do not think it will . So we throw money and technical assistance at this. there is no demand for it really.” Mr Jaycox said in Washington last week. 27 May 1993) International donors. would like to see this changed.The World Bank and Capacity Building (Extract from The Financial Gazette. Mr Edward Jaycox. undermined capacity building in Africa. undermining the development capacity in Africa because most of their technical assistance was imposed. bringing no sustainable improvement (see Box I-3). and in effect substitutes for local management rather than strengthens it. for genuinely sustainable capacity to be built. “We design a project and then we find a big mismatch between the project design and the local capacity to carry it out. That this was inappropriate is now clear and a new approach has been found necessary: projects should be planned to match local capacity for implementation.. otherwise we are not going to succeed in the development effort in Africa. Box I-3 .Guidelines for Planning Irrigation and Drainage Investment Projects 16 Implementation Capacity and External Technical Assistance The conventional identification/preparation approach of the past has often resulted in arriving at a project plan only to find a mismatch with local capacity to implement it. and to providing a detailed plan to enable the implementers to prepare themselves for carrying out the tasks expected of them.
such as temporary wage employment on scheme construction. hydrology. from their detailed local knowledge of weather patterns. or because of concerns that participation might delay implementation or result in design changes that compromise the quality of the final product. It can often pay dividends. Soliciting or orchestrating requests from farmers for government investments in irrigation is not . . either by government staff or farmers. have usually seen irrigation only from an engineering.even if the prospective users promise or agree to make a contribution at some later date. or preferably drive. They have been reluctant to adopt participatory approaches with farmers. ensuring smooth start-up. government irrigation engineers. but taking time over stakeholders’ participation in planning does not necessarily mean delay. and any potential losers to have a substantive influence on decisions that affect their future. not least for the farmers. Ownership and commitment by the users are unlikely to be achieved unless they consider that the project would meet their felt needs1 and they have a stake in the equity . Often farmers are driven by other motives in these circumstances. for their part. rather than a farming or social. and ultimately lead to more rapid implementation and a more sustainable development impact. and they later lose interest in the irrigation scheme. Undue delays in project approval and implementation are undesirable. This requires that the project planning process should allow time for the borrower and users to participate in. Ownership and Commitment Successful implementation requires participation in the planning and implementation process by all stakeholders.that is. carried out against tight deadlines by external planning teams. building farmers’ committment to change. Building ownership and commitment through participation has often been difficult to achieve in the past. Experience has shown that the ultimate scheme design almost always benefits from involving the users in the planning process. such as aligning a canal to avoid excavation in sacred ground. or at least those with some experience or knowledge of irrigation. they share in or bear all of the investment costs. markets. the planning process. The conventional sequence of identification/preparation. from the poorest illiterate smallholder to the richest well-educated commercial farmer. soils. usually have practical ideas of what works and what does not. in order to create a sense of ownership of. has seldom allowed time for genuine participation (which should go beyond mere consultation). perspective.Guidelines for Planning Irrigation and Drainage Investment Projects 17 Participation. the project. by preparing the implementers. 1: This is the basis of genuine demand-driven development. and consequent commitment to. Communities often have strong preferences regarding the nature and location of development that would influence planning. Farmers. mainly because of a misplaced belief that farmers are unable to understand or make any contribution to technical matters. and so on. On implementation.
Sri Lanka (1990). to take advantage of the invaluable store of cross-disciplinary knowledge that farmers possess about the existing system. The most common kinds of alterations observed were channels being relocated. farm boundaries and the conjunctive use of alternative water sources (in this case from natural waterways or from return flow). IIMI. making new flumes. destroying project flumes and lining channels. and as a result schemes are often inappropriately planned (see Box I-4). particularly if the farmers themselves are expected to take a share in the equity by contributing to the investment costs. Many cases involved multiple alterations which were interconnected. Often farmers relocated the construction markers when the crews had left. The most frequent reasons reported by farmers for making design changes related to questions of conveyance and distribution efficiencies. but it can nonetheless take account of the farmers’ experiences and preferences. adjusting division box gates to alter water divisions. project channels being abolished or not used. Indonesia frequently reported that during construction they had approached construction labourers or supervisors in the field to suggest changes and were usually told that the design had been established by the government and could not be changed.Guidelines for Planning Irrigation and Drainage Investment Projects 18 Participatory or consultative planning is essential in rehabilitation projects or the upgrading of traditional farmer-managed irrigation systems. streams being diverted or ponded. channels and ponds. 27 design alterations were identified in the sample blocks. as a possible source of system design input. Sound engineering is essential. in Design Issues in Farmer-Managed Irrigation Systems. involving farmers in system design can also often result in significant cost savings. Other actions included redirecting project channels into drains or streams. Box I-4 . Colombo. As will be seen from Chapter 5. Altogether. Yet farmers. making new channels.Second Approximations: Unplanned Farmer Contributions to Irrigation Design Farmers interviewed on the Kosinggolan Scheme of the Dumoga Irrigation Project in North Sulawesi. Source: Vermillion D. Projects that involve the displacement and resettlement of people can only be planned and implemented effectively if those affected are involved in the planning process and their suggestions and concerns taken fully into account. and channel offtakes or division points being relocated.L. Several cases involved relocating channels to follow farm boundaries. Thailand. Proceedings of an International Workshop of the Farmer-Managed Irrigation Systems Network held at Chiang Mai. December 1989.. Others waited until construction was finished and the contractors had moved on before altering the structures. are still usually ignored. to accommodate low water requirement crops or to continue to make use of pre-existing farmer-built structures such as small weirs. .
4: e. water users' associations. However. Participation usually also requires behavioural change in irrigation bureaucracies. In this case what is often required is a non-governmental intermediary. They may also often assist in capacity building by training government staff in this role. They may often be suspicious of government officials.g. to mean a charitable. Farmers may therefore require considerable persuasion to commit themselves to participate. 1: Some reports define all groups which operate outside the public sector as NGOs. village or district councils. caution is necessary to avoid any suggestion that NGOs should replace local institutions: to do so would generally be counterproductive. non-profit making organization. However. In the context of these Guidelines the acronym NGO is used in a narrower sense. Public Intervention in Farmer-Managed Irrigation Systems. IIMI. generally working at the grassroots level. suitably qualified and motivated NGOs may be subcontracted. the National Irrigation Administration in the Philippines. for various reasons it is often difficult for irrigation bureaucracies to attract and retain such staff. While non-governmental organisations vary in their ability to work with the poor and to cooperate with government agencies. See An Evaluation of NIA's Participatory Communal Programme. Instead. though possibly unreliable.Guidelines for Planning Irrigation and Drainage Investment Projects 19 A Possible Role for Non-Governmental Organizations (NGOs)1 in Participatory Development Farmers may be as uninterested in participation as government irrigation bureaucracies. especially if they have been the losers as a result of incompetent or corrupt practices. several of them have undertaken this role successfully. to identify community needs and voice them on behalf of the otherwise voiceless. either by local government3 or through the farmers’ own administrative structures4. to provide technical assistance services to animate participation. Even if such staff can be recruited. . 3: e. Colombo (1987).g. irrigation services and are now expected to bear more of the costs. farmers may still hesitate to cooperate fully with persons they regard as government agents. 2: For example. especially if in the past farmers have received free. and until this is achieved they may not be in a position to implement participatory development. Some bureaucracies have successfully employed young graduates in social science to work directly with farmers to assist the latter to mobilise and organise themselves to participate in project planning and construction2.
In a case study of the Muda Irrigation Project in Malaysia. and the production tithe covered all the O&M costs plus 20 percent of capital costs (at 10 percent annual interest). taxes. as well as the indirect return to the government resulting from controlled prices were taken into account. World Bank. the audit report concluded that if the zakat. 1: Bell. Clive. another 80 cents were generated downstream1.Guidelines for Planning Irrigation and Drainage Investment Projects 20 FISCAL SUSTAINABILITY The Need for Cost Recovery Economic efficiency and fiscal sustainability demand that the capital costs of irrigation infrastructure should eventually be recovered from the users. Box I-5 . partly because of the heavy burden on farmers of zakat. The prospects for raising direct cost recoveries were considered poor. Project Evaluation in Regional Perspective. it was found that for every dollar of value added generated directly by the project. In these cases capital costs not recovered may not really be subsidies if all the secondary benefits of irrigation development are taken into account. for example. June 1986.Cost Recovery: Setting the Appropriate Level A 1986 World Bank Operations Evaluation Department (OED) report described serious cost recovery problems on the Muda project in Malaysia. Source: OED Report No 6233. although indirect recoveries in the form of agricultural taxes or generally negative terms of trade for the subsector have in some cases been important (see Box I-5). a religious tithe. In practice few countries have ever succeeded in recovering much more than the O&M costs of public irrigation directly. Peter Hazell and Roger Slade. However. . water charges and land taxes remained far short of meeting O&M costs. the Muda farmers’ combined payment of water charges. It has also been argued that the complexity of some irrigation and drainage schemes justifies state intervention and subsidising of part of the investment costs. where at the time of audit. and a substantial sales tax collected from produce in the region. Washington DC. in order to permit longer term replication of investments. estimated in an FAO study to be 5-7 percent of gross farm income. without which some worthwhile projects may not have been constructed. World Bank Lending Conditionality: A Review of Cost Recovery in Irrigation Projects. Johns Hopkins University Press (1982).
there is an issue of equity involved in subsidising some members of society by way of artificially cheap irrigation: in principle it may be a praiseworthy social objective. In: Food Policy 1994 19 (5) 469-478.in which case the question should be asked why it was built or what can be done to make it viable . But this usually takes the form of an area or crop-based fee that provides no 1: See Vollrath T.does not usually work. Irrigators on public schemes are commonly reluctant to pay any charges that they are not forced to: poor collections lead to poor O&M. The general consensus now. If irrigators cannot pay it can only be assumed that the scheme is either unviable . other researchers have argued that the multiplier effects of investment in agriculture in developing countries are generally greater than those associated with investment in other sectors1. Nevertheless. There is also the difficulty of volumetric measurement. for example on public schemes in Morocco. the governments of many developing countries faced fiscal crises during the 1980s that focused their attention on the shortcomings of existing policies for financing irrigation. but in these cases increased water charges have been accompanied by improved service. mainly because revenue from water charges (if they are collected) is often returned to the general treasury instead of being allocated to O&M. including for example local customary law. or a fundamental belief in some countries that water should be free. among governments and financing institutions. Cost Recovery. There are exceptions to this rule.L. hence greater willingness to pay on the part of the farmer. is that users should pay all of the O&M costs and as much as possible of the capital costs.or unreliable. The Role of Agriculture and its Prerequisites in Economic Development: A Vision for Foreign Development Assistance.. Moreover. O&M and Water Charges Problems with cost recovery and O&M form a vicious circle.Guidelines for Planning Irrigation and Drainage Investment Projects 21 Moreover.that of relying only on raising water charges . It is also generally accepted that the standard tactic for dealing with poor O&M in the past . particularly with regard to the O&M costs. and an even greater reluctance to pay. but with typically high unit costs for irrigation development. Fiscal constraints in many developing countries simply do not permit subsidies of this kind anyway. The first of these can be overcome to a certain extent by charging a “service” fee for irrigation. The application and collection of water charges can be further complicated by various factors. in which case measures should be taken to correct the situation. . the social impact would in most cases be greater if any subsidy was spread more thinly over a higher proportion of the rural poor. Any suggestion that irrigators on a public irrigation scheme cannot afford to pay even the O&M costs needs to be examined very critically.
However. Metering of water supplied to larger groups. In effect. Yet there are many examples around the developing world where governments and donors have adopted the view that users are too poor to make any capital contribution. Moreover. . It also presupposes that government is committed to recovering costs. and farmers are paid in cash or food to contribute labour to the construction of the scheme. this solution will depend for success entirely on the cohesion of the group involved. Farmers are more likely to view construction simply as a source of off-farm employment. individual irrigators have little incentive to make more efficient use of water. and that there are no economic distortions in place that make it impossible for them to do so. Nevertheless. Even if it were possible to charge individual farmers for water on a volumetric basis. In these cases the construction or rehabilitation of an irrigation scheme is often seen as a welfare project rather than as an investment project. the injection of large amounts of food into an area under food-for-work programmes can sometimes depress agricultural prices and affect other farmers’ incomes. to regard the scheme as government infrastructure and ultimately to show little subsequent commitment to it. One solution to the problem of water charges is to devolve financial autonomy for O&M to users’ groups.Guidelines for Planning Irrigation and Drainage Investment Projects 22 incentive for the efficient use of water and may thus contribute to wasteful usage. or to irrigation agencies dependent upon the users for finance. the experience is that users’ groups are more effective collectors of fees than government agencies. is usually more technically feasible. this is an investment in equity and hence the scheme becomes to some extent private. setting an appropriate charge may present some difficulty because of local economic distortions (see Box I-5 above). even if only approximate. Users’ Contributions to Capital Costs Apart from the obvious fiscal advantage. It becomes the group’s responsibility to allocate water amongst its members and to recover the charges. a contribution by users towards the capital cost of a new or rehabilitated scheme is an indication of demand and commitment. and the group as a whole can then be charged. enhancing prospects for sustainability. For this to happen it requires that the users will be in a position to make such a contribution. without some form of volumetric charging. There are no signs that such an approach engenders any sense of ownership or responsibility. which it seldom is for most surface irrigation systems involving smallholders. Conditions for the sustainability of users’ groups are discussed later.
hence a lack of commitment. Other experiences from different countries are summarised in Robert Yoder and Juanita Thurston (eds). if the development proposed is an appropriate response to local demand for irrigation. Colombo (1990). Thus IFAD’s current irrigation and drainage investment strategy1 requires that users should “contribute between 10-20 percent to the direct costs. even if only for a few hours a day. actual costs were US$ 4. government commitment to the proposed investment is essential. 1: Drawn from Irrigation and Drainage Cluster .for which reason. Land tenure problems can however be a constraint to users’ participation in capital costs.are willing to pay up to 100 percent of the cost of their schemes. Legislation may therefore be necessary in order that freehold tenure or long leases can be granted . not only because of the farmers’ contribution of labour and materials. for example.000. and that they should “pay for the cost of irrigation equipment (cash/loans)”. IFAD. in the IFAD/World Bank-funded Communal Irrigation Development Project in the Philippines. which invariably leads to unwillingness to accept O&M costs. and provide locally available materials for construction. Unwillingness to contribute implies a lack of demand for the irrigation development proposed. and private irrigators throughout the world . up to 40 percent of the initial capital costs are recovered from farmers. among others. IIMI. As mentioned. Colombo (1987). IIMI. For example.Guidelines for Planning Irrigation and Drainage Investment Projects 23 Even among very poor populations. Design Issues in Farmer-Managed Irrigation Systems. Where farmers are unable to gain legal or even customary title to their land they are not normally willing to invest. Experience suggests that this is not unreasonable. irrigators or prospective irrigators can contribute labour. but also because of farmer-led design changes2. Farmers will invariably seek the least cost solutions if they have to pay even a part of the costs. . Rome (Draft 20/10/94). case studies have shown that requiring a capital cost contribution from farmers can result in significant overall savings if farmers themselves are involved in system design.including those on traditional farmermanaged irrigation schemes . unless they have confidence in long term usufructuary rights. 2: From An Evaluation of NIA’s Participatory Communal Programme : Public Intervention in FarmerManaged Irrigation Irrigation Systems. preferably in kind or labour”. On some public systems in Morocco. If nothing else. individuals and communities have been willing and able to invest substantial amounts in cash and kind for projects that they consider are worthwhile.100 per hectare compared with the originally estimated US$ 7.Module: The Role of Water User’s Associations.
in effect to privatise them . Attention is nowadays being focused on how to achieve this commitment. such as users’ representation. or for WUAs or their apex organisations to contract out irrigation services to the private sector. inefficiency and poor O&M. which can lead to more efficient use of the resources by helping to overcome many of the problems that public irrigation systems face. such as inequitable water distribution.and to ensure that users’ groups on new schemes accept full responsibility for O&M from the outset. On the other hand there are other options available.Guidelines for Planning Irrigation and Drainage Investment Projects 24 WATER USERS’ ASSOCIATIONS Water Users’ Associations and Transfer of O&M Responsibility Fiscal crises have in many cases forced governments to devolve financial and managerial responsibility for existing irrigation systems to the users . It is obviously unrealistic to expect a WUA to take over full responsibility for a system that serves hundreds of thousands of hectares and which was previously operated (even if poorly) by a large irrigation agency. Smaller schemes. might on the other hand be managed entirely by a WUA. corruption (see Box I-6). . either directly or indirectly through apex WUA organisations. The degree of responsibility which water users’ associations (WUAs) can be given for management of a system depends on its scale. The objective in either case is greater user commitment. including their main water supply infrastructure. on the board of a financially autonomous irrigation authority. and to what extent WUAs can be assisted to form and to manage their own affairs.
Paper prepared for World Bank Water Resources Seminar. et al. World Bank. 2: Meinzen-Dick R. Financial inducements may also be used to bribe ditch-riders and other operational personnel to enhance water supplies to one farmer. usually the poorest and least powerful. referred to earlier. Thus. It has been very difficult to control in the past because of lack of financial discipline and accountability within irrigation bureaucracies. These were summarised as follows. 1992. some have died in infancy. and some have lived on but performed no useful function. . Journal of Development Studies 18(3): 287-328. Water Users Associations in World Bank-Assisted Irrigation Projects in Pakistan. irrigation engineers will award contracts to high-priced or unqualified. Meinzen-Dick et al. particularly for the transfer of irrigation responsibilities.. the policy factors that can assist in the development of such organisations. which often means tailenders. contributes to the vicious circle of poor maintenance-poor cost recoverypoor maintenance. The results of such corruption are not usually immediately apparent. and hence has an obvious bearing on sustainability. at the expense of others. Sustainable Water User Associations: Lessons from a Literature Review.2 reached a number of conclusions regarding what leads to strong WUAs. concluded that some WUAs have been stillborn. and “turn a blind eye” to substandard work that saves costs for the contractor and increases his profit. World Bank Technical Paper Number 173. 1994. in return for financial inducements. Byrnes1 concluded that most WUAs in World Bank-assisted projects in Pakistan remain relatively weak. The System of Administrative and Political Corruption: Canal Irrigation in South India. or a group of farmers.. Source: Wade R. incompetent contractors.Guidelines for Planning Irrigation and Drainage Investment Projects 25 Box I-6 . 1: Kerry J Byrnes. some of which is redistributed to superior officers and politicians. Conditions for Sustainability of Water Users’ Associations Experience to date in the formation of WUAs and the transfer of irrigation O&M responsibilities to them has been uneven.Corruption in Public Irrigation Schemes Social research and experience have shown that irrigation projects in some developing countries provide irrigation engineers and other operational personnel with opportunities to raise significant amounts of illicit revenue from the distribution of water and contracts. The 1994 World Bank review of its experience in irrigation. Corruption of this kind is considered to be one of the most important supply-side factors in the poor performance of public irrigation. Washington DC. and the implications for constructive interaction between irrigation agencies and WUAs. but substandard work obviously has a detrimental impact on subsequent maintenance requirements and costs.
and conflict resolution obtained through WUAs should offset the substantial time.improves equity. the benefits to farmers should outweigh the cost of membership. • The structure and role of WUAs depend on their degree of commercialisation. Their expanded role in main system management can provide a greater degree of control over water supplies. cash.Guidelines for Planning Irrigation and Drainage Investment Projects 26 • WUAs are stronger if they can build upon existing “social capital”. and allows them to expand in size. while still maintaining manageable interactions among members of base-level groups. materials. WUAs are also likely to be stronger if they are relatively homogenous in terms of members’ background. • The range of WUAs shows great variability. The benefits of improved water supply. The second. (or “American model”) is a more specialised organisation based on hydraulic boundaries. This implies that irrigated agriculture should be profitable enough to create a demand for water. Whether existing or new organisations are involved in irrigation management. and more complex technology. However. Federation allows WUAs to expand and operate on a larger scale. and higher levels of irrigation systems. the organisations should be adaptable . and defining membership to include all stakeholders including tenants and women . and interpersonal transaction costs of being involved in the WUA. These are often socially based. As size increases. Such organisations are appropriate to situations of larger land holdings. or patterns of cooperation. (or “Asian model”) typically relies on direct participation of all members. it also creates a much greater need for accountability of leaders and employees to the membership. desirable). • Organised farmers in WUAs can manage more advanced technology. However. and the organisations are focused on irrigation rather than multiple activities. The first. greater market development. heterogeneity is manageable (or even. low market penetration and simpler irrigation technology. which is a major incentive for farmers to participate in WUAs. • There is no single “optimal size” for WUAs. increased farm income. and take on more tasks in irrigation management. It is therefore advantageous to work with existing successful organisations wherever possible. larger WUAs can achieve economies of scale. multipurpose organisations and are likely to be most appropriate in socially cohesive societies with smaller land holdings.to their local conditions and to changes over time. • In any type of WUA. in some instances. but two broad models can be identified. with smaller base units. . transaction costs increase and it becomes more difficult for members to monitor each other. Greater commercialisation allows WUAs to replace direct labour or in-kind participation of members by hiring specialists. However. and WUAs should have a demonstrable effect in improving farmers’ control over water. and assets.
It should also balance rights with responsibilities for WUAs in order to ensure that members have sufficient incentive to participate. Not too much should be expected from them. Strengthening agency accountability to users through public information of irrigation plans and programs and providing financial autonomy for irrigation agencies to rely on user fees for their budgets are strong incentives for the agency to foster WUAs.Guidelines for Planning Irrigation and Drainage Investment Projects 27 • Where agencies retain operation and maintenance responsibilities at higher levels of the system. However. Their creation requires a re-orientation of irrigation bureaucracies towards providing a service and creating an environment that facilitates the formation. However. turning over management of public irrigation schemes is not merely a matter of consultation and forming WUAs. Particularly important roles for the state are establishing and adjudicating water rights. Developing a service orientation among agency staff and a collaborative attitude between agencies and WUAs is essential for successful joint management of irrigation systems and for management transfer programs. with government continuing to act as the prime mover. . the legal framework should be flexible enough to allow members to adapt their organisations to local circumstances. by the users themselves. of sustainable WUAs. • There is a changed but essential continuing role for the state in ensuring long-run sustainability of WUAs. operate bank accounts and undertake other activities. • A supportive policy and legal environment is crucial to the sustainability of WUAs. Power struggles. particularly in programs which aim to transfer responsibilities and costs of irrigation system management from the state to users. they need to carry out these roles effectively so that farmers will feel it is worthwhile for WUAs to carry out their functions at lower levels. collusion and corruption may not always be eliminated by user participation and the creation of WUAs. construction. Clear assignment of property rights over water and over the physical infrastructure of irrigation systems to WUAs can be a potent tool for strengthening the organisations. State policies of administrative and financial decentralisation have provided the impetus for many management transfer programs which contract the role of the state and expand the role of WUAs. and should be given greater attention. monitoring and regulating externalities and third party effects of irrigation. providing technical and organisational training and support to WUAs. or financial support for major rehabilitation. and occasionally providing design. especially in the short term. A facilitating legal framework is critical to give WUAs the ability to deal effectively with external groups. maintaining a supportive legal framework.
costed and entered into a cost benefit analysis. Investment project designs which provide flexibility and a progressive or pilot-led approach to transfer are more more likely to lead to eventual success1 SOCIAL AND ENVIRONMENTAL ASPECTS Adverse social and environmental impacts of irrigation investments have been many and varied.Guidelines for Planning Irrigation and Drainage Investment Projects 28 Sound social engineering is as necessary as good technical engineering. if planners wished to strengthen these agencies in parallel with the formulation of irrigation investment proposals. ICS Press. And even though environmental legislation existed. Sri Lanka (1994). financing institutions. there are a number of irrigation projects around the world that possibly would not have been built had the disbenefits been foreseen. E. . 1: Practitioners are referred to Orstrom. In the past one of the reasons for this was that promoters and implementers of irrigation projects found that addressing such issues was an inconvenience. Locally Managed Irrigation Systems . The ease with which sustainable WUAs will form. will vary according to different physical. no one set of rules can be applied. and successful transfer of responsibilities will then take place. San Francisco.. and waterlogging and induced salinisation2. IIMI.Self-Governing Irrigation Systems. Although some would argue that on the whole the social and environmental disbenefits of irrigation are far outweighed by the benefits.and despite the existence of clear operational guidelines for dealing with social and environmental issues . Despite the years of experience and the lessons learned .governments. assessment and mitigation. They include health impacts (malaria and schistosomiasis).. Land acquisition and resettlement requirements have often caused delays to implementation or even cancellation of loan agreements. There is no magic solution. project planners and implementers have in the past often paid only lip service to the need for systematic problem identification. as well as a likely source of project delays or cancellations. and considerable time and resources will have to be invested in learning how best to approach the process in each case. environmental agencies generally did not have the teeth to implement regulations. Also Yoder. Colombo. Management Transfer and Turnover Programmes. R. 2: According to the 1990 FAO report An International Action Programme for Water and Sustainable Agricultural Development: A Strategy for the Implementation of the Mar del Plata Action Plan of the 1990s.Essential Tasks for Assistance. 20 to 30 million hectares (or about 10 percent of the world's irrigation) is severely affected by salinity and an additional 60-80 million hectares are affected to some extent. it was already too late. Crafting Institutions . California (1992) which covers some practical planning principles which can be applied in most cases. social and financial circumstances.
Guidelines for Planning Irrigation and Drainage Investment Projects 29 Box I-7 . erosion. The consensus now is that social and environmental impact assessment is essential.” Source: Report No 13676: A Review of World Bank Experience in Irrigation. occasionally on their relations with irrigators’ organisations. an important source of environmental troubles in numerous countries. . and especially so for aquifer management. World Bank. Even if they have equal roles in agriculture. Washington DC (1994). none of those (sector reports) analysed was found to have addressed the subject. except for the most recent studies on Mexico and India. It has become increasingly obvious that the design process must start from a consideration of how the users will operate the system. CHOICE OF TECHNOLOGY Commonsense dictates that the choice of technology for irrigation should be based on its appropriateness for the cropping patterns intended and should also consider cost-effectiveness. However.Some Social and Environmental Issues in World Bank-Financed Irrigation Project Planning The 1994 World Bank review of its irrigation experience commented as follows on the coverage of gender issues in its sector work: “Irrigation affects men and women differently. and never on the irrigators’ organisations themselves. It focused on management and organisation of government institutions.” and on broader environmental issues: “Coverage of special areas of environmental impact has been poor and is still quite weak. and the various dimensions of catchment management: deforestation. soil degradation. Irrigation engineers have in the past tended to overlook an additional need: for the technology also to be matched to the level of sophistication or operational capacity of the users. washing and providing drinking water.” and on organisation and management: “Coverage of management and organisation was broad but generally superficial. The approaches and attitudes of governments and financial institutions have changed more recently. Operations and Evaluation Department. inappropriate farming. and silting. which they usually do not. and as important as economic analysis in the planning process. women almost always have primary responsibility for such household tasks as food preparation. This is the case for drainage. this should then be designed to provide the optimum combination of efficiency in water use and cost effective operation and maintenance. overgrazing.
or if. by the extent of saline and waterlogged areas in Pakistan. (May 1993). 2: e. that there is inconclusive evidence to favour one camp or the other. World Bank Technical Paper 256. While most irrigation engineers would now agree that the starting point for design must be ease of operation. because of operational difficulty. The stage has now been reached when it is necessary to correct the drainage omissions of the 1: Burns R.g. In the longer run poor drainage is one of the most significant causes of reduced yields and of irrigated land going out of production. THE DRAINAGE DILEMMA The world is faced with a huge backlog in drainage requirements. and the implications that this may have for scheme layout. it cannot be utilised to capacity. Design and Operation of Smallholder Irrigation in South Asia (1995) by Donald Campbell.. delivery of water to crops is foregone. . whether for new development or rehabilitation of existing schemes.Guidelines for Planning Irrigation and Drainage Investment Projects 30 Equally important. Over the last quarter of a century water usage for irrigation has more or less doubled without a comparable increase in drainage capacity. demand-based. has been the subject of much debate over the years. the designer must consider how the user will cultivate his land. On the other hand. Discussion of this issue is well covered elsewhere2 and need not be continued here except to note the conclusion of the World Bank in its 1994 review of its experience in irrigation. in the hope of preserving the civil works from interference1. they however still tend to polarise into two camps. it sees the solution as the modernisation of these systems. World Development XXI. for instance. One sees the problem largely as overcoming the hydraulic instability of extensively-gated manually operated systems. as shown. in World Bank Technical Paper 246. and numerous IIMI publications. pp771-789. a design to improve water use efficiency on a traditional irrigation system by the introduction of “modern” water control structures may not result in overall efficiency gains if the users reject the modern controls in favour of their traditional proportional dividers.. Thus it may be that the design which involves the lowest investment cost per hectare may not be the most cost effective solution if it also involves large numbers of staff for its operation. The choice of technology. the possibility of just-on-time. Irrigated Rice Culture in Monsoon Asia: The Search for an Effective Water Control Technology. The other accepts the reality of farmer damage in wet season drought and so favours designs based on cruder and more robust structures. adding automatic downstream control structures and other feedback mechanisms designed to achieve hydraulic stability. Modern Water Control in Irrigation (1994) by Plusqullec et al. Both would agree on the need to eliminate anarchy and on the importance of flexibility of operation.
. Provision of crossings. World Bank Technical Paper 256. The main drains are therefore quickly rendered redundant. 1: Campbell D. but these should be adequately maintained and defended against encroachment. This further reinforces the need to promote participation and ownership by the users. The challenge is to persuade farmers to accept the importance of drainage and to take responsibility for its maintenance. World Bank. is essential or obstruction by informal cultivator-constructed crossings will inevitably result1. it has often survived for only the first few years of a project’s life. which are usually the responsibility of the irrigation agency. Where such competing demands exist. International funding is unlikely to be made available for irrigation if the use of water for this purpose prejudices other more profitable uses.Guidelines for Planning Irrigation and Drainage Investment Projects 31 past. in each case considering the circumstances of the country and project opportunities concerned. Washington DC (1995). charges for irrigation use should at least reflect its scarcity value. The issue of scale should be approached with an open mind.. each with adequate culvert capacity. Secondary drains. there is growing recognition that: • Water is a scarce and valuable finite resource with many competing demands for its use. even where provision for drainage has been made in the past. IMPLICATIONS FOR THE PLANNING PROCESS To summarise. At the same time there is a need to improve water use efficiency to reduce the drainage demands of the future. Design and Operation of Smallholder Irrigation in South Asia.for example the degree of users’ demand and commitment to subsequent O&M. channels should be limited to those which are essential. It is necessary however to consider why. To improve the sustainability of drainage systems. One of the main reasons is that within a year or two of construction tertiary drains are often cultivated over by the irrigators who are theoretically responsible for them. are often also partially filled in by farmers to provide crossings or to pond water for other purposes. In most cases of poor scheme maintenace it is the drains that are allowed to deteriorate first. • There are more important issues in irrigation than that of scale .
• Economic efficiency and fiscal sustainability demand that the O&M costs and at least a part of the capital costs of irrigation should be recovered from the users. Whilst project planning has always been a government responsibility. in both strategy formulation and the planning of individual projects. and less on the requirements of the lender. • Drainage should be given much more prominence than in the past. This requires that the institutional demands of the project are matched to local institutional capacity. planners and implementaers continue to pay only lip service to the need for impact assessment. facilitating and assisting in the planning process by complementing and supporting local preparation groups. • Apart from the obvious technical and financial conditions. and an even greater need for participation and local ownership. there needs to be even greater insistence on international project planning teams. the per hectare capital costs of typical new irrigation development may be difficult to justify by the returns from basic food crops alone. external technical support should involve providing inputs and support to a process that is driven by the borrower and involves contributions from many. The conventional project identifiation/preparation approach of the past has militated against these requirements being met. The implications of these lessons for the planning process are that: • Project planning needs to centre more on the borrower and the users. and even greater reluctance to give outside teams direct responsibility for the tasks involved. and to ensure that users of new schemes accept responsibilty for O&M from the outset. the key condition for sustainable development impact from an irrigation investment project is its implementability. and that stakeholders are genuinely committed to the project through participation and local ownership. • Adverse social and environmental impacts are significant contributors to project failures. irrigation investment to achieve incremental food production may be limited to upgrading existing formal and traditional irrigation systems. Fiscal crises in many developing countries are now forcing governments to devolve responsibility for existing schemes to the users or private companies. . Until lower cost solutions can be found. The consensus now is that social and environmental impact assessment is as essential and important a tool as economic analysis in planning successful projects and programmes. such as those provided by the Investment Centre. and to emphasise participation and capacity-building features. Despite past mistakes. in practice this is rarely achieved. diverse local stakeholders. or demand forces the price of basic food crops up. Increasingly therefore. governments. the formation of users’ groups or WUAs. financing institutions.Guidelines for Planning Irrigation and Drainage Investment Projects 32 • Although world food supply will depend even more on irrigation in the next century than it has in the past. This often requires institutional reorientation of irrigation bureaucracies. However.
social or organisational issues. or they may simply be required to review such papers produced by local preparation groups. the planning process will continue to evolve away from conventional identification and preparation to one that is less compartmentalised. international project planning teams will be required to produce working papers that can be used to support a project proposal or appraisal. NGOs and the private sector in project implementation. and to ensure smooth start-up. • Instead of producing comprehensive stand-alone preparation reports. • Due to the importance now attached to social and environmental impacts the evaluation of these must be given as much prominance as economic evaluation in the planning process. Long-term technical assistance will be financed only as a last resort. When successfully executed. most often linked to upgrading of schemes and facilitating greater involvement of irrigators themselves. with specialised short-term inputs that will focus more on institutional. • Given the importance now paid to increasing implementation capacity. Analysis and reporting are more likely to build up a dossier of reports. this approach should be exploited to reduce the time spent in bringing about readiness for implementation.Guidelines for Planning Irrigation and Drainage Investment Projects 33 • Given this diversity of contributors. that may not necessarily be neatly a wrapped and packaged document that can be presented as an “identification” or “preparation” report. environmental. since it will be the main means of building local commitment and capacity. multilateral lending for irrigation and drainage is likely to continue to favour sectoral loans for this purpose. . • In some cases the planning process may become as important an end as the ultimate project plan. rapid implementation and ultimately sustainable development impact from investments. working papers and other documentation.
for subsequent appraisal by the financing institution. until quite recently. and the high cost of new irrigation development is increasingly difficult to . where national capacity has been inadequate external support teams. sound construction. Recent Trends: The Changing Investment Environment As indicated in Part I. This in turn requires: • that the institutional requirements of the project are matched to local institutional capacity. as generally carried out for irrigation in the past. been a sufficiently explicit aim of the conventional planning process. It is normally preceded by an irrigation and drainage subsector review and the formulation of a country subsectoral strategy. full engineering feasibility studies and detailed designs for at least the major components were completed before appraisal. built on stakeholder participation and local ownership. It is also acknowledged that building institutional capacity and stakeholders’ commitment has not. Financing institutions usually required that. such as international consulting companies or the Investment Centre. among other things. financial and economic viability. The scope of this type of project preparation. Meanwhile. Although identification and preparation have always been the responsibility of the borrower. • commitment to the project. there is increased awareness of competition in demand for scarce water resources.Guidelines for Planning Irrigation and Drainage Investment Projects 34 PART 2: The planning process GENERAL The Conventional Planning Process The conventional approach to planning irrigation investments consists of identification of project options followed by preparation of the preferred option(s). also on implementability. and environmental sustainability. in addition to the more obvious factors of good engineering design. it is now generally accepted that project success depends. was dictated by the project-specific nature of investments. have often been requested to assist with this work.
The steps of identification and preparation have become blurred: they are being replaced by a process that is intended to avoid unnecessary duplication of effort at each successive stage. including those responsible for appraisal. increasing emphasis is being given to the Investment Centre’s role in facilitation. staff appointed and trained. given the prevailing low prices for basic food and fibre crops. at a pace that is matched to local capacity for implementation. fundamental aspects of project planning are reviewed and approved as the work involved is completed. the role of irrigation in food supply. rather than by accepting direct responsibility for the tasks involved. Ideally. Together. Projects tend to favour rehabilitation and/or modernisation of existing schemes. when its principal objectives are building local commitment and capacity. ownership and capacity building than they have been in the past. In some cases the process is becoming almost as important an end as the ultimate project. and the formulation of strategies for improving the performance of the subsector. these factors have led to modified approaches to lending in the subsector: most financing institutions have become more concerned with the objectives of participation. in a participatory process that involves all stakeholders. the project planning process has also undergone change: subsector reviews are now more concerned with the place of irrigation within national water resources management strategies. benefits and water use.Guidelines for Planning Irrigation and Drainage Investment Projects 35 justify. to support these objectives and to finance more efficient investments in terms of costs. to create preparedness in those responsible for implementation. and budgets approved for the year in which operations are to start. Because of this change of emphasis. Investments may be made on a national or regional basis. As a result of these changes in focus. the Investment Centre’s involvement is tending towards the provision of somewhat different services from those previously required for the conventional planning process. The Changing Role of the Investment Centre Because of these changes in approach. smaller and shorter missions than hitherto. Thus the process is becoming much more operationally focused. Assistance increasingly tends to be provided to the borrower by more frequent. . Lending has increasingly tended to take the form of sectoral loans. to ensure that institutions (and if necessary. by providing inputs and support to a process that is undertaken by the borrower. the comparative advantages of irrigated versus rainfed crops. so that they are ready to move quickly and effectively into implementation once financing has been approved. policies and legislation) are in place. and the transfer of part or all of the management responsibility to the users.
by providing an input to screening and selection of demandbased sub-projects . • train LPGs in participatory rural appraisal and planning techniques. including defining the objectives and drafting terms of reference. • provide ad hoc specialist technical support and guidance as required to complement the skill-mix available from LPGs. today it may extend into and beyond appraisal . may not be needed for all aspects of the process: some may be already adequately covered. or programme of support. some of which may be carried out as a later project activity during implementation. An Investment Centre mission. in which subprojects are selected and planned during loan implementation. In sectoral investment projects or programmes. through consultation. workshops and participatory planning with the institution(s) and stakeholders concerned. and others dealt with by different groups. and • gear-up implementing institutions so that they are fully prepared to start project implementation once financing is approved. such as consulting firms or LPGs. or as part of a wider agricultural sector review. Thus. Approach and Staffing Required Subsector review and strategy formulation remains the essential first step in the planning process. the financing institution may require an independent appraisal of these.for example. • assist in arranging for the necessary prerequisites. but also . and may be carried out either as a standalone activity. and profitable future investment in. for project planning. some irrelevant.Guidelines for Planning Irrigation and Drainage Investment Projects 36 intended to: • facilitate the building of local consensus and commitment. the irrigation and drainage subsector review should provide the government and potential financing institutions with recommendations for improving the performance of. • prepare local planning groups (LPGs) and institutions for the activities to be carried out. If a water resources policy review and strategy formulation has decided that irrigation is a justifiable option for use of available water. whereas in the past the Investment Centre’s involvement in project planning usually ended with the submission of a project preparation report. including prefinancing. the irrigation subsector.as the planning process continues during implementation. SUBSECTOR REVIEW AND STRATEGY FORMULATION Objectives. which may also involve Investment Centre staff. It should address not only technical and economic. as well as other quality control measures.
The strategy should be investment-oriented. The main items are discussed below. It may also be appropriate for a representative of the ministry of finance to attend this meeting. working with a national team of similar composition. It should then guide irrigation policy and suggest the strategy for meeting proposed policy objectives. Main Topics for a Subsector Review A checklist for the contents of an Irrigation Subsector Review and Strategy Paper is given as Annex 1. it will usually be done over a period of 1-2 months by a small team comprising a water resources/irrigation engineer. Budget permitting. to make a brief preliminary country visit to discuss and agree with government the scope and purpose of the review/strategy formulation process and the outcome expected by potential financing institutions. implementation capacity. concentrating on major accomplishments. environmental and policy issues. institutional. Regular subsequent contact between the team and government decision-makers should encourage an exchange of ideas and contribute to the quality and validity of the final subsector review and strategy report. such as that provided by an Investment Centre mission. preferably at permanent secretary or director level. It may be useful for the team leader. It is usually appropriate to initiate the review/strategy formulation process by holding a round-table meeting with senior representatives of the ministry or department(s) responsible for water resources and irrigation development. It should consolidate and expand knowledge of the subsector. and in this case might be compared with identification in the conventional planning process. prior to the main programme of work. rather than any new investigation. agronomist and sociologist.Guidelines for Planning Irrigation and Drainage Investment Projects 37 social. assess its capacity to undertake some or all of the necessary tasks. It may identify investment projects or programmes that can proceed directly to detailed planning and appraisal. lessons learned. . and brief its members and prepare terms of reference and notes for their guidance. It will be based largely on existing information. Such a visit should also provide an opportunity to establish the composition of an LPG. with realistic planning horizons and mechanisms for periodic updating. If the subsector review and strategy formulation is carried out with external assistance. economist. key issues and information gaps. it may also be desirable for an environmental specialist to participate in order to identify major sectoral environmental issues that may influence the strategy.
Area estimates should. be qualified by taking account of physical or economic limitations to full development. if lower than expected. • the social impact of existing development. it will be necessary for the subsector review team to make its own assessment of potential and competing demands. and the respective roles played by the public and private sectors. area utilised. In line with recent thinking on water resources management. in view of the complexity of the issues involved. so that this may need to be the subject of a separate supporting study. the following should be reviewed: • the location. in terms of command area developed. it is unlikely to be possible to determine this within the time frame of a subsector review. organisation and management.Guidelines for Planning Irrigation and Drainage Investment Projects 38 Existing Irrigation Development. why. and any macro-economic distortions with specific impacts on the subsector. pollution or depletion of surface or groundwater supplies and loss of biodiversity. water use efficiency. and employment opportunities created or foregone. with particular regard to wellbeing and associated gender issues for direct and indirect beneficiaries and oustees. this should have taken account of competing water demands. the reasons for this. using generalised estimates of per hectare gross annual water requirements for typical cropping patterns applicable to the country or region. • marketing arrangements and prices. This should be compared with estimates of suitable arable land resources and. plans for further exploitation and the opportunity cost. health. if not. salinisation. . • typical capital and operating costs. • whether water supply arrangements and O&M have been satisfactory. and if not. extent and nature of existing irrigation and drainage systems. • past and present performance versus technical potential. estimates should also adopt a basin approach. • their development history. particularly erosion and sedimentation. and yields. the scope for further irrigation should be estimated. Land and Water Resources and Scope for Further Irrigation or Drainage Development Assuming that a strategy for water resources management has been prepared in advance of the irrigation subsector review. The opportunity cost of water should have been determined in the water resources strategy study. • measures taken to mitigate negative impacts and their degree of success. cropping intensities and patterns. Structure and Performance From a desk study of available documentation and limited field visits. • Environmental impacts. and should have provided an indication of water availability for irrigation1. • the contribution of irrigation to GDP and to agricultural output. waterlogging. 1: If a water resources management strategy has not yet been prepared. by administrative boundary and river basin. rather than following administrative boundaries. so far as practically possible.
It is therefore as well to overcome such hurdles early on in the planning process. for comparative purposes: • the profitability to irrigators of the different types of on-farm investments. a rapid financial analysis of crop production should be prepared for each of the existing categories of irrigation and main crops under each system. lake or similar body of water that forms a boundary between or flows through. compared with rainfed crops. an exception would be any tributary of an international waterway that runs exclusively in one state and the state is the lowest downstream riparian. including any in the cost of water.likely to be a minimum of 12 percent). water and labour. to avoid subsequent delays in implementation or even cancellation of the project. The object of this work should be to indicate. for typical cropping patterns. canal. ownership or management. and • approximate investment ceilings for future developments. • an approximate cost-benefit analysis and indication of comparative advantage for the main crops under different types of irrigation systems. using border prices and any necessary shadow pricing of currency. The international financing institutions generally require that the country proposing a project on an international waterway should formally notify other riparian states of its intention to do so. including that for water supply to the farm. However.Guidelines for Planning Irrigation and Drainage Investment Projects 39 Particular attention should be paid at this stage to any limitations that might be imposed by international water rights issues. A similar analysis should be prepared in economic terms. and can include any tributary of these. two or more states. or ability to cover the costs from crop production after deduction of all variable costs.50 (October 1994) from the World Bank’s Operational Manual for further details of the Bank’s definition and its policy on this matter. In any event. ie with all taxes and subsidies removed. which should be identified and flagged. to yield an acceptable internal rate of return (IRR . See Operational Policy OP 7. in order to give such states an opportunity of consenting or objecting to the proposals1. . to demonstrate the typical returns to land. 1: An international waterway can be defined as any river. the financing institution will generally require that appropriate agreements are reached between riparian states on the use of international water before any new project (as opposed to rehabilitation. provided this does not involve increased abstraction) can be financed. Financial and Economic Viability of Irrigation From the available data on irrigation costs and benefits.
Economics of Irrigation: A Modular Methodology for Comparing the Benefits with the Costs.Guidelines for Planning Irrigation and Drainage Investment Projects 40 If time and staff resources permit. private versus public) and crops can be ranked by DRC. It is however unnecessary or even undesirable to spend much time and effort in collecting and preparing new data during strategy formulation. versus dam sprinkler. The Use of Water Pricing to Enhance Water Use Efficiency in Irrigation: Case Studies from Mexico and the United States. for each of the categories involved. FAO/World Bank Cooperative Programme. particularly if they are irrigating high value crops. as the purpose is to provide a quick comparison between crop and farming system options. and may have a bearing on fixing the appropriate water charge where improved water use efficiency is being sought1. alternatively the agency should be requested to assemble the data in advance of the review/strategy formulation work. This may be considerably more than they are actually paying at present. the opportunity should be taken here to assess the scarcity value of water to farmers. particularly when considering high-value crops. Such an analysis can help to identify any crops for which there may be comparative advantage under the various options for irrigation development. sprinkler irrigation. Government of Zimbabwe. Ministry of Lands Agriculture and Water Development. distribution and in-field works. (1994).. 1: See Ronald G Cummings and Vahram Nercissiantz. Eds. A simple spreadsheet can be used to model various crops. as an input to the National Irrigation Policy (1993). average input requirements and production costs for each of the crop/farming system options. crops and irrigation systems can also be ranked by net margin per unit of water consumed. Domestic resource cost coefficient (DRC) analysis has been found to be a useful tool for the above analyses. Data requirements are: average crop yields under the various farming systems (irrigated. including capital and O&M costs of storage and conveyance works. financial and economic crop prices. average irrigation costs. rather than to prepare a final economic cost-benefit analysis. in World Bank Technical Paper No 249. 2: A good example is given in Jansen D J. By the additional input of data on average gross irrigation water requirements. versus dryland. although possible market constraints should be clearly flagged. World Bank. Background Paper prepared for the Planning and Research Unit. non-irrigated. surface irrigation. versus dam/surface. Washington DC. ie the price that they would be prepared to pay for water in a competitive market. Rome (1989). large privately-owned commercial farm. . Approximations can be made. Also Working Paper: Estimating the Economic Efficiency of Irrigation: The Case of Brazil. and so on). to compare the water use efficiency of different crop and irrigation options2. Water Policy and Water Markets. public smallholder scheme. irrigation and production systems (eg borehole/sprinkler. Le Moigne et al. Ideally the review team should work with existing data which should be already available from the planning branch of the irrigation agency.
macro-economic policy and prices to the government’s subsectoral objectives should be assessed. and importance of. including: • government policy regarding cost recovery. • the sustainability of development in the present or likely future fiscal setting. such as dryland farming?1. This should establish what government sees as the main national benefits of irrigation. poverty alleviation or some other. to expose any mis-matches between what they want from it and how the government sees it. Subsectoral Issues and Constraints Identification of the key subsectoral issues and constraints may best be undertaken through a round of discussions with the key individuals directly or indirectly involved in subsectoral development. employment creation. The connection with. Priorities and Plans The review should continue with an analysis of government’s policies. where family labour shortages oblige farmers to consider agricultural activities in terms of the returns to labour rather than unit of land. 1: This is a common constraint in many parts of Sub-Saharan Africa for example. betterment levies. priorities and plans. whether this be food self-sufficiency.Guidelines for Planning Irrigation and Drainage Investment Projects 41 Government Policies. • the opportunity cost and scarcity value of water.including those responsible for social development. the ability of farmers to pay. its approach (eg direct water charges. such as: • the compatibility of government’s present commitments and future plans for irrigation with its present macroeconomic circumstances. For example. export earnings. These may include representatives of government departments . land taxes. The role of irrigation as seen by farmers should be examined. Would government’s objectives for. and water pricing (see Box II-1). environmental protection and local government . and in these circumstances when family labour is short farmers may neglect irrigated plots in favour of dryland crops. Returns to labour in dryland farming can often be greater than for irrigation. . income distribution. say. growth in food demand. export earnings and employment creation be better met by private sector irrigation development. • water charges and cost recovery issues. Also whether there are political obligations. but the importance of each will differ from country to country. which could be in the form of privatelyfinanced development by either small or large-scale commercial farmers? The issues that will arise could include those described below. do small farmers really want or need irrigation for food self-sufficiency. Economic and Fiscal Policy Issues. or could irrigation conflict with other activities. The planning team should take care to focus on those that are relevant and not waste effort on those that are not. NGOs and other private sector groups.as well as farmers’ organisations. agricultural product taxes and price controls) and how effectively this is implemented. to which the government is under pressure to respond by means of irrigation development. availability of markets. for instance to particular regions or interest groups.
and the existing institutional capacity and legal framework for enforcement.Guidelines for Planning Irrigation and Drainage Investment Projects 42 • the willingness of farmers to pay (which is usually conditioned by farmers’ perceptions of service standards). • the effect of all the above on users’ commitment to the proposed development and O&M. • the extent to which existing economic policies discourage sustainable private or public sector irrigation development. equitable compensation for rights rescinded. and impact on private sector investment. and implications for subsequent operation and maintenance. especially if farmers do not pay for land on public irrigation schemes. • equity considerations. and • the extent to which the country or region enjoys a comparative advantage in the production of specific irrigated commodities. • constraints to irrigation development posed by land fragmentation. tradeability. • how to maintain the real value of irrigation fees in the face of inflation. Marketing Issues. . and • security of water rights. by both large and small-scale farmers. • regulations and controls on environmental impacts. • legal and administrative problems of land re-distribution and restitution to previous owners. such as: • insecurity of land tenure and the constraint that this may place on private sector investment. for example in Central and Eastern European countries and in others where individual tenure was not previously allowed. • similar problems related to consolidation of fragmented land1. • whether fees should be project specific or uniform across projects. and obstacles to land consolidation. especially for high value crops. • provision for legal establishment of users’ groups. • dam safety regulations and means of enforcement. could set a ceiling on the area of new irrigation which might feasibly be developed. Legal and Institutional Issues. and the willingness or ability of government to adopt new policies and introduce new legislation. such as: • the domestic and export demand and market prospects for irrigated crops and the extent to which limited demand. • whether rates should differ among users within a single irrigation project. 1: For detailed treatment of this topic see forthcoming FAO Irrigation and Drainage Paper Land Consolidation in Irrigation and Drainage Projects.
A further issue of equity arises where there is the possibility for users who have the capacity to pay more to cross-subsidise those who are less well endowed. and not some average. higher fees should be charged to those for whom the cost of providing water is greater. cost. fees can be either project-specific or uniform. In a situation of separate. the question of charging different rates among different water users does not arise. in Zimbabwe it has been suggested that large-scale commercial farmers should pay more for their water than small-scale farmers in the communal lands. Nevertheless. Based on Leslie Small and Ian Carruthers. There may however be a logical basis for charging different fees to different users between or within projects if the costs of providing water to them are different. the administrative simplicity of uniform fees is an attractive option. In practice. using some mechanism such as indexation. then it will be essential to design a pricing system which generates sufficient revenues to cover the irrigation agency’s recurrent O&M costs. centralised financially autonomous irrigation agency exists. In situations where pricing is possible. the administrative burden of collecting differential fees is usually too great to warrant such an approach. Where a single. Farmer-Financed Irrigation: The Economics of Reform.may be more important than the precise level at which the price is set. caution is necessary to avoid creating distortions that remove incentives to efficient water use on the one hand. however.Fixing Appropriate Water Charges Whether it is practical to apply nationally uniform water charges depends on the financial and organisational structure that exists for the delivery of irrigation services. an issue of equity arises if inflation results in "investors" in newer schemes having to pay more than those in older schemes. However. and under the existing socio-political situation there would appear to be some merit in this suggestion. true water pricing is seldom practised. Linking their loan repayments to a measure of inflation. It can be argued that each set of water users should pay the cost of providing water to them. while placing barriers to increased production on the other. The question of the “right” charge for irrigation water therefore needs to be put in perspective in formulating strategy: in reality. However. is one possibility to avoid this situation. Cambridge University Press. decentralised financially autonomous irrigation associations.Guidelines for Planning Irrigation and Drainage Investment Projects 43 Box II-1 . Cambridge (1991) . possibly subsidised. the establishment of the price system itself giving water a positive marginal cost to the users . if financial autonomy is a real possibility. If there is no inherent reason for projectspecific fees. For example. a single national fee structure would be incompatible with autonomy and with the different standards of service likely to be provided.
such as devolving financial autonomy to the existing management organisation. • the success or otherwise of existing management and O&M of public schemes. decentralisation. consulting companies and contractors). • constraints to the takeover of greater responsibility for development and O&M by users’ groups. and if so how1. would improve O&M. • whether targeting the beneficiaries or clients should be a matter of policy. • the adequacy of coordination between the various organisations involved in irrigation development. and whether such groups have been net losers as a result of past developments. cost recovery.. and corruption. Social and Environmental Issues. including NGOs and local consulting and contracting companies. and the need for rationalization or new organisation. • issues related to resource allocation. whether scheme management reorganisations. • the extent to which the private sector. the degree of participation of users’ groups. construction and O&M of works. operation and maintenance. or scope.Guidelines for Planning Irrigation and Drainage Investment Projects 44 • the existing institutional framework and its capacity for irrigation development. • the adequacy of compensation for oustees. whether this could result in greater participation of users in the planning. • the availability of trained manpower for irrigation planning and implementation and the extent to which this could constitute an overriding constraint to irrigation development. the role of the private sector (eg NGOs. if so whether mitigation is possible. can assist irrigation development. community or social organisation. the need for institutional capacity building. including nomadic graziers formerly dependent on land identified for irrigation development. • the extent to which government is able or committed to make any necessary legal or institutional changes. • the need. transfer to water users associations. • whether women are or will be disadvantaged by the introduction of irrigation. and the capacity of government to oversee this. 1: Settlement schemes for example can influence who benefits by setting criteria for settler selection. to adjust the government’s overall role or institutions for irrigation. viability and sustainability. and implications for future development. and how. the need for human resource development and training. consultants. such as: • the role of democratically elected WUAs and apex organisations in conflict resolution. . joint management etc.
• the integration of irrigation with other farming activities. other effects on vulnerable ecosystems and biodiversity. sprinkler irrigation. new development. particularly erosion and sedimentation. and the options. public smallholder scheme. as the purpose is to provide a quick comparison between crop and farming system optio encouraged by financial disincentives to wasteful use. non-irrigated. The key elements are: average crop yields under the various farming systems (irrigated. but this may be at the cost of technical efficiency. In some countries significant gains can be made by . pollution from saline return flows and agrochemicals. the most appropriate type and scale of support for irrigation and drainage development should be identified. alternatively the agency should be requested to assemble the data in advance of the review/strategy formulation work. average input requirements and production costs for each of the crop/farming system options. average irrigation costs. for achieving this in a sustainable way considered. employment generation. such as intensified rainfed production. groundwater depletion. • government’s attitude towards farmers’ participation in construction. surface irrigation. physical and other. Strategy Formulation Defining Strategic Options and Measures On the basis of the review of the topics discussed above it should first be decided whether there are more cost effective alternatives than irrigation for meeting government’s objectives. • environmental impact of past development. such as improved nutrition or increased incidence of water-borne disease. Approximations can be made. and the success or otherwise of mitigation measures taken. where this can be achieved economically. These may consist of improving the performance of existing irrigation development. food-for-work or self-help labour. If not. Ideally the review team should work with existing data which should be already available from the planning branch of the irrigation agency. financial and economic crop prices. such as charging for water at or near its scarcity value. waterlogging and induced salinisation. It is however unnecessary or even undesirable to spend much time and effort in collecting and preparing new data during strategy formulation. for each of the categories involved.Guidelines for Planning Irrigation and Drainage Investment Projects 45 • equity and plot size on public smallholder schemes: smaller plot size obviously means that more households can benefit and there is more chance of including the poor. • the compatibility of existing policies with social and environmental goals for future development. and so on). • positive and negative impacts on human health. large privately-owned commercial farm. including capital and O&M costs of storage and conveyance works. distribution and in-field works.
for the settlement of small farmers and production of basic foods/fibres. As noted earlier. or transfer of responsibility for O&M to users’ groups or financially autonomous bodies that are dependent on the users for finance1. provided these do not disrupt traditional organisation and management structures or inadvertently transfer responsibility from the farmers to a public irrigation agency. The options for new irrigation development could include different categories of irrigation. Other improvements could include institutional or fiscal measures. electricity distribution) 1: In many cases. as a minimum. or irrigation agencies become financially autonomous and dependent on the users for finance. limiting government’s role to the provision of basic infrastructure (eg dams. . Policy and legal measures could include crop price deregulation and enforceable water charges . but if water users’ associations assume greater responsibility for O&M. in view of the fiscal constraints faced by most governments. based on development of surface or groundwater.provided the quality of O&M service is adequate. The general consensus is that water charges should. such as improved organisation and management. Cost recovery will be a major strategic concern. this may however be difficult to justify economically in many cases. Where improving the performance of existing loss-making public schemes is not economically viable. For example: • Expansion through new public large-scale irrigation. aim to recover all the O&M plus at least a part of the capital costs. consideration should be given to whether such schemes should be recognised as components of a social programme. which is unlikely to be acceptable either to governments or financing institutions under the present fiscal constraints. The options for cost recovery range between the extremes of none at all. which is likely to be possible only in certain private sector developments. • In potentially irrigable areas that have surplus water resources but no infrastructure. to full recovery of capital and recurrent costs. rather than being treated as free-standing investment projects. main canals.Guidelines for Planning Irrigation and Drainage Investment Projects 46 simple improvements to water control on traditional irrigation systems. to be financed from government’s welfare budget. The perennial problem of how to charge and collect fees will remain. the levels of collection and reliability of deliveries are likely to improve. roads. types of farmers and crops. investment in system rehabilitation may be a precondition for transfer. increased budgetary allowances for O&M.
clearance.for instance by providing labour and naturally occurring or locally available materials at their own cost2. This might be achieved by creating an enabling environment (eg by the provision of medium term credit) which encourages large or small-scale farmers to develop irrigation at low incremental cost. • New drainage only. but to make an agreed deduction from wages to cover the required contribution to construction costs. A pre-emptive. choosing the type and location of distribution works . Given the seriousness with which governments and financial institutions regard potential social and environmental problems. • Encouraging private sector development only. legislation. • preparing or strengthening legislation/regulation on involuntary resettlement and compensation. Thus land tenure policy changes. . Commitment can be enhanced by allowing farmers to pay for irrigated land. • recommendations for engineering designs to address common diseases. special attention should be given to strategic options for reducing the risk of future adverse impacts and mitigating possible effects. 2: Farmers are unlikely to contribute to capital costs without security of land tenure and water rights. An alternative to the provision of free labour might be to employ prospective users as labour on a wage basis at the market rate. either on a freehold or leasehold basis. pre-planned approach to adverse impacts arising from environmentally risky projects is likely to be more effective than attempting to mitigate problems in a piecemeal fashion as they are identified or occur.Guidelines for Planning Irrigation and Drainage Investment Projects 47 and services. It is best to approach the problems at the subsector level through appropriate policy measures. and encouraging demand-driven development of distribution and in-field systems by the farmers1. • establishing or strengthening the agencies responsible for enforcing environmental legislation. and monitoring. Whatever form of new development is decided upon.for example.and in construction . 1: This does not mean merely soliciting requests for more government investments from farmers. for environmental assessment. and provision for cadastral mapping may be required. to expand or restore productivity on a previously irrigated or rainfed area. it will be important to encourage greater ownership and commitment by users through their participation in planning . including training and the preparation of guidelines for categorising projects. including: • strengthening existing legislation/regulation for environmental protection as appropriate for future irrigation development. and preparing guidelines for land acquisition assessments. such as improved drainage to combat malaria and schistosomiasis.
Guidelines for Planning Irrigation and Drainage Investment Projects 48 • similar recommendations on other measures to improve public health on irrigation schemes. where necessary. should be identified. number of. for long term watershed/basin management. land tenure and land reform. and selection criteria for sites for scheme modernization or completion. • Cadastral surveys. procedures for the involvement of users’ groups in operation and maintenance. • Pilot basin-management exercises and studies. the strategy may recommend a range of other immediate actions or studies.for example on improvements to traditional irrigation schemes. such as trust funds or retroactive financing by the potential lender. • Further assessment of the needs. should be prepared for the work to be carried out by LPGs. especially on water rights. budgets and. attention may be drawn to project-specific opportunities. In addition to recommendations for the elaboration of specific irrigation or drainage projects or programmes. protected wells and improved ventilated pit latrines). supported if necessary by specialised consultants. to develop and test methodologies. • On-scheme trials to develop and test low-cost technologies . Terms of reference. • Field surveys to identify the development works and complementary public investments required to promote new private sector led irrigation. these actions might include: • Crisis management within the sector: for example in some Central and Eastern European Countries. and the costs involved. detailed guidance. including participatory planning. • Price liberalisation and other policy changes. • Additional legal studies. Alternatively or in addition. . Possible sources of funds for pre-investment studies. and from collective to individual land ownership. activity schedules. where short-term bridging arrangements are needed for rehabilitation and upgrading of public systems during the transition from centrally planned to market-based economies. that can proceed directly to detailed planning and appraisal. • Further assessment of market potential for high valued irrigated agricultural products and of the prospects for meeting this potential at acceptable cost. such as improved water supply and sanitation (for example. Identifying Priority Actions and Projects The strategy formulation process may result in identification and approximate costing of investments covering a time-slice of government’s irrigation or institutional development programme.
to plan next steps. The Irrigation Subsector Review and Strategy Paper The resulting draft irrigation subsector review and strategy paper should reflect the degree of consensus so far achieved. In either case. Rome (1994). if options have already been suggested as part of a subsector review and strategy formulation. donors and possibly NGOs1. The draft should usually be submitted to government and the potential financing institution for discussion prior to issuing the final version. Draft. they should be explored further. Alternatively. Experience has shown that this is the most crucial and sensitive stage of planning because it leads to the critical decisions on project 1: For methodologies see De Alwis K and Sonn L. These should preferably be presented and discussed at a workshop attended by all major stakeholders. and to promote rapid progression to the final stage of the planning process. The result of this consultation. . including potential financing institutions. is the conceptualisation and preliminary examination of one or more investment options that conform with subsector priorities. and of any participatory events held during the strategy formulation process. to which all should be consequently committed. which should be flagged along with possible solutions. CONCEPTUALISING AND COMPARING THE INVESTMENT OPTIONS Objectives The main objective of this part of the planning process. FAO Investment Centre. Annex 1 provides a checklist for the contents of a typical irrigation subsector review and strategy paper. There may nevertheless be unresolved conflicts or issues. should be a convergence of views between the stakeholders on the most appropriate strategy for the sound development of the subsector. which may be compared with identification in the conventional sequence. Workshops as a Means of Promoting Ownership in Policy Formulation and Project Preparation.Guidelines for Planning Irrigation and Drainage Investment Projects 49 Building Commitment to the Strategy The output from the work carried out so far may consist of a series of brief working papers and an outline of a draft strategy. the intention is to assist the government in selecting its preferred option. which would take account of comments made upon the draft.
carrying out the minimum amount of work necessary to underpin the recommendations but yet to ensure that they are soundly based. identify any gaps in knowledge and possible sources of ready additional information. The extent of surveys. • make a preliminary assessment of the available database for the project. wherever practicable procedures should be followed from the outset that contribute to ownership of and commitment to the ultimate project. Alternatively there may be a need for external support from the Investment Centre or international consultants. engineering and other technical investigations that may be needed at this stage will vary widely according to the type of investment that is being considered: for some project-specific investments. Analysis will be geared to arriving at selection of the best choice from a range of options. and make arrangements for obtaining it. what may be expected from government. including arrangements for field visits. Appendix 1 gives an indication of typical requirements for a conventional investment in a new irrigation development. As before. pre-feasibility investigations may need to be performed. The work may be carried out entirely by the borrower or its LPGs. social and environmental considerations. • plan the work. in others experienced engineering judgement may be all that is required. . General Approach to the Work and Staffing Required The aim should be to arrive in the shortest possible time at conclusions that will guide planning. including local consultants or local consulting companies. institutional.Guidelines for Planning Irrigation and Drainage Investment Projects 50 choice. Where the work is to be carried out with external support. to: • explain the objective of this part of the planning process. concept and content on which all subsequent planning work is based. and the need for building consensus among all stakeholders. 1: Investment Centre Technical Paper No 6. balancing technical. involvement will depend on the complexity of the investment options and the capacity of the borrower and LPGs to undertake the work within the required timeframe. and which are very difficult to alter later1. economic. in most cases it will be advantageous for the leader of the support team to make a brief preliminary visit to the country concerned in advance of the main work. and to building local capacity for implementation and sustainability of developments. FAO Rome (1989). The Design of Agricultural Investment Projects: Lessons from Experience.
agronomist and economist. or at least advance towards. Experience suggests that teams assigned to support the process of investment conceptualisation and comparison are best kept small and will probably consist of a water resources/irrigation engineer. preferably at permanent secretary or director level. However. It is essential that in advance of this workshop the participants are provided with a brief which summarises the options. consensus on the preferred option(s). However. . social and environmental concerns are regarded by governments and financial institutions. confirms that they are in line with subsectoral strategy. sound professional judgement is required to decide on the needs and to avoid unnecessary detail. is usually a great advantage since it encourages stakeholder commitment and should avoid any “false starts”. once the team’s draft report has been submitted to government and the financing institution. given the seriousness with which institutional. and gives reasoned arguments for the selection of the preferred option. especially towards the end of team’s in-country work. The participation of the potential financing agency’s project controller or task manager. Although the process should involve close contact and continuous exchanges of ideas between the stakeholders and local team members.Guidelines for Planning Irrigation and Drainage Investment Projects 51 • discuss the appointment of a high-level Steering Committee or senior technocrat to oversee the planning process and provide policy guidance on how to address the key issues. then the workshop may have to be held later. team members will need to have sufficient breadth of experience to consider these aspects and to identify potential hazards and constraints. Appendix 1 (at the end of Part II of the Guidelines) gives an indication of typical requirements. If it is impractical for the team to prepare this before completion of its in-country work. it is often desirable to conclude the process by holding a wider workshop to achieve. Activities Review of Available Database The level of information required for the purpose of conceptualisation and comparison of options will vary widely according to the scale and nature of the development. It is usually appropriate to initiate the process of conceptualising and comparing the options by holding a round-table meeting with senior representatives of the ministry or department(s) responsible for water resources and irrigation development.
• aerial photography and topographic mapping at an appropriate scale for reconnaissance purposes (see Appendix 1 for suitable scales). pollution and human health. copies of the original designs and layouts for the existing infrastructure would be required in addition to the above. • farm income and off-farm employment data. together with details of: • the construction history of the scheme. treatment of oustees and conflict resolution. unless in exceptional circumstances) of the following: • any pre-feasibility reports already prepared by local or international consulting firms. FAO. • the social history of the scheme. salinisation. farm size. land tenure and water rights. • relevant time-series surface water resources data.Guidelines for Planning Irrigation and Drainage Investment Projects 52 For new development. with an assessment of efficiency. . • details of existing land use. with regard to resettlement. with regard to sedimentation. • soils and irrigation suitability mapping (preferably according to internationally recognised legends and classification systems such as that adopted by the US Bureau of Reclamation1). the scheme. • local agricultural and livestock production systems data. yields and trends. • the environmental performance of the scheme. and only a part of this information is likely to be available. Soil Survey Investigations for Irrigation. • water allocation to. • existing allocation of land within the scheme. this may include some (but is unlikely to include all. preliminary cost estimates and/or basic cost estimating data for each of the options. In most cases there will be large gaps in the above. including outline or preliminary designs. current state of the infrastructure and an indication of rehabilitation needs. • demographic data. • production support services and their performance. • existing cropping patterns. Cases may occasionally occur in which the lack of data makes it impossible to achieve the objective of guiding a decision on 1: See Soils Bulletin 42. and • cost recovery and O&M history. and use within. present O&M arrangements. waterlogging. • groundwater and well inventories and monitoring data. In the case of an existing project for rehabilitation and upgrading. it may require specific studies and surveys to obtain it. • organisation and management structure. including crop yields (for rainfed and irrigated crops) and technologies used. • assessments of market and price prospects for the main commodities to be produced. • local and site specific climate data. Rome (1979).
Soils and Land Capability Assessments For rehabilitation projects the topography should be shown on the layouts and designs for the main structures. to avoid duplication not only of their own efforts but also those of the interviewees. If this is not already available the team should prepare specifications for the work to be carried out. but this may need to be verified. Provided the external team meets in the evenings for an exchange of information and ideas. .Guidelines for Planning Irrigation and Drainage Investment Projects 53 the options. If suitable topographic mapping is not available. The engineer for example may be too busy with investigations to spend time listening to the agronomist carrying out interviews. it will need to be prepared so that preliminary engineering designs can be drafted in advance of final project planning and appraisal. for canal and drain alignments. and for specialist(s) to return later to assess the new information and form an opinion on how the new information affects choices open to the government. to make the best use of the time available. and so on. During the field visits the team should always involve government representatives and members of any LPG. there is likely to be little that the team will be able to achieve in the way of verification of previous soils and land capability assessments. either by government or by private contractors. operationally it is usually more practical for the various members to work independently of the others during the day’s field work. Manual survey may also be necessary for the sites of the main structures. to avoid unnecessary delay in eventual implementation. the coverage and effectiveness of supporting services. intuition and common sense of the team members: it will have to be backed up subsequently by firm data. Topography. All but the smallest developments can usually be mapped satisfactorily from aerial photography (see Appendix 1 for scales). Depending on the magnitude of the proposed development(s). other than to judge whether or not the work carried out to date is adequate for the purpose in terms of scale and detail. the team should prepare terms of reference for upgrading this information to the required standard. arrangements should be made to fill the gaps. However if there is a sociologist on the team it is usually appropriate for him/her to work closely with the agronomist. and possibly for a sample of the distribution and in-field system. Reconnaissance Field Visits If an external support team is assigned responsibility for conceptualising and comparing the options it is likely to need at least a week to carry out reconnaissance field visits to the project site(s) to gain first-hand impressions of physical features. problems and issues as perceived by farmers. What is important is that the process should be kept moving forward. If it is not. In this case. It is important to appreciate that the information gained at this stage will be no more than impressions and its value will depend heavily on the experience.
There may also be a need for drainage studies on rehabilitation projects even where there is no evidence yet of a problem. 1: Developed by the FAO Land and Water Development Division. in diskette form. . For any major structures there will be a need for geological and/or geotechnical investigations for foundation design. However although CROPWAT is quick and easy to use. and any potential drainage problems associated with this. slope stability analysis and availability of naturally occurring construction materials. judgement should be exercised to avoid duplication of effort. For the purpose of these preliminary estimates. presented in FAO Irrigation and Drainage Paper 49. Africa. these investigations will have to be provided for and completed prior to final design. Soil surveys often tend to concentrate on pedological aspects and to ignore soil physics and the factors that influence drainage. these can be verified using the FAO computer programme CROPWAT1 in conjunction with the climate database CLIMWAT2.Guidelines for Planning Irrigation and Drainage Investment Projects 54 The main focus of attention for new development is likely to be the assessment of land suitability for the type of irrigation proposed. it will need to be addressed by further studies. Preliminary Estimates of Irrigation Water Requirements for Possible Crops For new irrigation developments. system capacity and overall peak project water requirements can probably be based on using the 80 percent probability of exceedance effective rainfall for the nearest representative rainfall station to the project area. and this work should take no more than an hour or so (provided data are readily available or assumptions can be made on local planting and harvesting dates). of 3. local estimates should be adopted where these are considered to be of reasonable validity. if the drainage aspect is not yet adequately covered. and presented in FAO Irrigation and Drainage Paper 46 (1992). If necessary. Most planning teams will find this of practical use. Middle and South America. since upgrading could in some cases result in more water being applied than in the past. South Europe. The point to bear in mind is that the requirement at this stage is a comparison of options rather than absolute figures. as derived from CLIMWAT. seepage predictions.261 stations in 144 countries in Asia. the Near East. If not already available. 2: A climatic data base. the team should assess the climate database and local estimates of irrigation requirements for the range of possible crops and planting dates being considered.
but in general larger projects tend to have been under consideration for a longer period of time so that the degree of sophistication of the hydrometeorlogical and hydrogeological network is usually higher than for smaller projects. and appropriate for the particular circumstances of the project. A similar approach should be adopted for rehabilitation projects. Projects on international waterways require special consideration because. so that the various technical options can be conceptualised and compared. 1: Irrigation and Drainage Paper 24: Crop Water Requirements. to arrive at estimates of theoretical system demand/capacity for comparison with reality.Guidelines for Planning Irrigation and Drainage Investment Projects 55 Conversion from net water requirements to gross should be on the basis of empirical local data for efficiency of the types of irrigation systems under consideration. . and to identify system constraints. within or across international borders. Otherwise. Instead it will normally require a prospective borrower to enter into international agreements with the other riparian states for the efficient and equitable use of the entire waterway system. If not. and will depend on the anticipated method of estimation envisaged. The availability of data on water resources will vary widely between projects and countries. the engineer should define the further work required to determine the feasibility of the proposals. for small projects generalised estimates of mean annual basin run-off may have to used. The irrigation engineer should judge whether the database is adequate and whether the methodology adopted is soundly based and applied. or from FAO Irrigation and Drainage Paper 241. The required depth of analysis of time-series data will also vary according to the scale of the project(s). with empirical forecasting methods. If the scale of the proposed development or the complexity of the basin hydrology warrants it. government or its LPGs (including consulting companies) will probably have already analysed the data to establish the availability of water for the project(s) at a given risk of failure in supply (usually 20 percent). the volume of water reliably available on an annual or seasonal basis should be determined from the available data. as already mentioned. Data needs for future refinement of the estimates should be identified. FAO Rome (as revised 1992). an international financing institution will not finance a project that would prejudice other riparian states. and the existence of other irrigation or competing interests within the basin. Preliminary Assessment of Available Water Resources After confirming at a preliminary level the gross irrigation water requirements per hectare. prior to taking the further steps of project planning and appraisal.
drainage considerations should form an important part of the process of considering the investment options. members of formal and informal groups. “without project”. On the basis of these preliminary assessments. the drainage requirements for each of the options should be compared. water table depth and the drainable surplus. politicians. which is of particular value for scoping the subsequent EIA (if one is required) and it can also be used as a management tool for monitoring purposes at different stages of the EIA. traders. or an alternative checklist that may be preferred by government or the financing institution1. Should it be obvious at this stage that any of 1: The ICID checklist. B or C (see Box II-2). Its simple layout enables an overview of impacts to be presented clearly. by widening the range of initial contacts to include not just local government staff but also persons working with NGOs and religious organisations. and particularly how farmers who would be affected by. should enable the team to decide on the need for further socio-economic studies and their scope and focus. The Bank’s Operational Directive (OD) 4. From similar . the potential investment. together with the review of the available data. The approach to the screening process varies somewhat between governments and financing institutions. The visits. The team should use field visits and review available databases to screen the investment options. situation. traditional leaders. Although these reconnaissance visits may not be an effective substitute for a subsequent socio-economic and production systems survey (SEPSS). Environmental Impact Assessment of Irrigation and Drainage Projects.in terms of rainfall. Initial Environmental Evaluation This part of the planning process requires screening of the possible environmental impacts of the investment options under consideration. For the options being considered.01 requires that projects should be screened for environmental issues and assigned to one of three categories: A. preliminary estimates should be made of surface run-off and drainage from known rainfall data. or perceive. as well as farmers and their wives.Guidelines for Planning Irrigation and Drainage Investment Projects 56 Preliminary Assessment of Drainage Requirements In view of the lessons learned.existing schemes to that proposed. Preliminary Assessment of “Without-Project” Socio-Economic Situation From limited field visits. The ICID checklist is also available as a WINDOWS-based software package. with varying levels of detail. . is intended for non-specialists and enables otherwise timeconsuming work to be carried out in advance of expert input. and from available data from existing wells and boreholes. which enables rapid production of a report directly from the field study. recommended in FAO/ODA Irrigation and Drainage Paper 53. but that of the World Bank is typical. topography and soils . the value of such reconnaissance is greatly enhanced. an assessment should also be made of subsoil drainage. the team should gain a preliminary impression of the present. preferably using the ICID Environmental Checklist.
ie how successful institutions have been in developing. • The resources of the concerned institutions. and whether there are areas of weakness. whether they are still valid or whether there is a need for redefinition . • The performance of the institution in being able to fulfil its objectives in a timely and efficient manner. if they exist. If. water users’ associations (WUAs) and their apex organisations. in terms of staff.or reorientation. these should be performed as components of the subsequent feasibility investigations for the chosen option(s). NGOs. the likely impacts should be clearly identified and approximate costs estimated for consideration in the comparison of the options. . late release of funds. and whether there are any significant operational problems: for example delays in decision-making. These assessments are to assist planners to select the better options and ultimately arrive at the best project proposals. etc. problems over procurement of goods. taking account of the new requirements of the project or project options. social impact assessment (SIA) or a Land Acquisition Assessment (LAA). as a result of the screening process. are required. supervision reports. One indication of capacity is precedent. and so on. physical facilities and budget. It is emphasised that the purpose of the initial environmental assessment. like the preliminary evaluation of institutional capacity and the preliminary cost-benefit analysis (see below) is not to rule project proposals out of hand. imbalances and inconsistencies.perhaps through new legislation . and of any adaptations to investment options that would be needed to match the scale of investment to institutional capacities for implementation. an environmental impact assessment (EIA). or that land acquisition and resettlement would be required.Guidelines for Planning Irrigation and Drainage Investment Projects 57 the project options would result in quantifiable negative impacts. At the government level an indication of motivation and commitment will be the rate of staff turnover. The evaluation should establish: • The goals and objectives of the government institutions responsible for irrigation. private sector groups such as contractors and consulting companies. Preliminary Evaluation of Institutional Capacity A preliminary evaluation should be made of the capacity of existing institutions to undertake and sustain the specific development being considered. Institutions to be assessed include government agencies responsible for irrigation development and environmental protection. operating and maintaining schemes in the past1. which is most likely to be strongly related to 1: For previous internationally financed projects valuable information can be obtained from project or implementation completion reports.
are buildings in good repair. or are vehicles available. in terms of their current involvement in O&M. and what proportion of expenditure is made up of salaries and wages? Organisational charts can be useful in indicating the degree of complexity of the organisational structures and might give a clue to problems of management. Again. staff numbers and their qualifications. The assessment of ability or willingness to undergo this transformation will require subtle analytical skills. who could be engaged during the subsequent final planning stage. . it is equally important for the team to gain an insight into management systems and style. The state of the institution’s infrastructure and facilities might indicate the importance given to it by government: for example. At the scheme level. in order to detect any management constraints. The commitment and performance of existing WUAs. expert advice should be sought from an institutional specialist or management consultants. the farmers attitude to change. such as willingness to contribute to capital costs and acceptance of the responsibility for (and cost of) O&M. farmers. with emphasis being placed on participatory planning and implementation and management transfer. and adoptable by. should therefore form the basis of an assessment of the opportunities and constraints for establishing new WUAs for new or rehabilitated schemes. and if there are doubts regarding the capacity of the key institutions to adapt to change and fulfil their new responsibilities. such as reluctance to delegate. It is important to note that in the changing investment environment of recent years. the role of many irrigation institutions is in a state of flux: from being executing and O&M agencies they are now often expected to adopt a coordinating and facilitating role. and to support the selection of the preferred options. Although structure. to confirm that these are likely to be attractive to. levels of cost recovery and whether they have achieved any success in improving the lot of tailenders. precedent may be the most useful indicator. Matching project objectives with institutional capacity is a crucial element in conceptualisation. facilities and equipment are important.Guidelines for Planning Irrigation and Drainage Investment Projects 58 their terms of service. especially span of control and the critical responsibilities for decision-making. and how many of them are on the road or in the workshop? What is the balance between capital and operating costs. should be assessed. Comparisons of the Likely Costs and Benefits The main aim at this stage is to compare the likely financial and economic performance of the available options.
Guidelines for Planning Irrigation and Drainage Investment Projects
Box II-2 - Categorisation of Irrigation Projects According to the Need for Environmental Assessment The World Bank’s approach, as set out in its Operational Directive 4.01, is to categorise and act upon projects, or project components, under three headings: Category A Projects/Components. These are likely to have significant adverse impacts that may be sensitive, irreversible, and diverse. The impacts are likely to be comprehensive, broad, sectorwide, or precedent-setting. Impacts generally result from a major component of the project and affect the area as a whole or an entire sector. A full environmental impact assessment (EIA) is required. Category B Projects/Components. There may be adverse environmental impacts but these are less significant than category A impacts. Few if any impacts are irreversible. They are not as sensitive, numerous, major, or diverse as category A impacts; remedial measures can be more easily planned. Preparation of a mitigation plan suffices for many category B projects. Few category B projects would have a separate environmental report; most may be discussed in a separate chapter of the project document or feasibility study. Category C Projects/Components. Professional judgement finds the project to have negligible, insignificant, or minimal negative environmental impacts. An EA or environmental analysis is normally not required.
Estimates of Project Benefits Assessments should be made of the key parameters of yield expectations, cropping intensities, and prices for inputs and outputs, on the basis of which outline budgets for key crops and perhaps simple farm models should be prepared. Initial estimates should be made of the incremental benefits, in terms of those accruing to the farmer and the overall project, in financial and economic terms, for comparative purposes. Assumptions that a high proportion of the land will be planted to high value (ie mainly horticultural) crops should be regarded with caution and even some scepticism, because of the likely need for specialised farming skills and potentially restricted market size or difficult access. Preliminary Cost Estimates Previous estimates of capital cost should be reviewed to the extent possible with the level of detail available. The level of engineering design detail upon which these estimates will be based will vary, but in most cases estimates will be based on outline designs only, and it will be necessary to make an allowance for physical contingencies of at least 15-20 percent to allow for unforeseen costs that may be added as more detailed engineering designs are prepared.
Guidelines for Planning Irrigation and Drainage Investment Projects
Annual operating costs should be estimated on the basis of energy costs for water delivery, salaries and other benefits for an assumed operating staff complement, their vehicle operation costs and office running expenses. Annual maintenance costs should usually be based on a fixed percentage of the capital cost (see Annex 2 for examples). Preliminary Cost-Benefit Analysis A simple cost-benefit analysis, in financial and economic terms1, can then be carried out on each of the options. This can take either or both of the following forms: • net present value (NPV); or • internal rate of return (IRR). If the practitioner is more comfortable with this, the analysis could be performed using COSTBEN, the PC-COMPASS module for cost benefit analysis2. It should be emphasised however that a high degree of accuracy in cost-benefit analysis at this stage is unnecessary, as all that is intended is a rapid comparative analysis of the options, so that government can better decide on a preferred course of action.
Initial Project Brief
On completion of these studies the team, in liaison with any LPG, may prepare an initial project brief (IPB - see Annex 3), or sometimes a formal identification report. This will be presented in draft form to government and the financing institution and will be the basis for discussion at a consensus-seeking workshop (see below). The IPB should contain the team’s conclusions and recommendations with regard to the preferred option(s), supported by reasoned arguments and highlighting any outstanding issues. Because the intention is that the planning process should be streamlined, the main text should be very concise and should as far as possible refer to, rather than quote, previous work, such as the subsector review and strategy formulation report. It should however contain, in appendices, draft terms of reference and cost estimates for the various detailed studies and other activities that need to be carried out to complete the planning process3. It should also suggest the proposed allocation of responsibility between government, contractors (including contracted NGOs) and any external technical assistants, and
1: i.e, using border prices for inputs and outputs, deducting any subsidies or taxes, and shadow pricing local currency and - if appropriate - labour. 2: This software is available from FAO to staff and consultants of FAO and the World Bank, FAO member government institutions, other multilateral financing institutions and universities at no cost. 3: See Annex 3 for suggested contents and coverage of typical terms of reference.
Guidelines for Planning Irrigation and Drainage Investment Projects
provide a tentative programme, in the form of a bar chart, for achieving these tasks1. It will usually be unnecessary to prepare technical annexes for the IPB, since technical work so far will have been limited and will be superseded by more detailed investigations. However any relevant working papers can be separately bound and presented to government and the financing institution if necessary.
Achieving Consensus on Investment Concepts and Options
It is often desirable to conclude the conceptualisation process by holding a workshop, which should be attended by as many as possible of the stakeholders or their representatives, including those of the financing institution, LPGs, and, if possible, the farmers. In some cases it may also be worth inviting interested NGOs and/or representatives of private sector interests. Although it might seem preferable to hold this towards the end of the team’s in-country work, this is usually impractical for operational reasons and because in many cases the team will not yet have completely formulated its ideas. Thus the workshop is more often held sometime after completion of the in-country work, and the draft initial project brief or identification report can be used as the basis of discussion. Depending on the available budget, various members of the conceptualisation study team may attend, or they may be represented by the team leader only. The workshop should usually commence with a verbal presentation by the team to all participants, preferably supported by visual aids. The workshop may then be broken down into smaller discussion groups. The objective should be to: • seek opinions from the stakeholders, to arrive at or advance towards a consensus on the preferred project option(s); • discuss the work involved in further planning, the responsibilities for undertaking this, and to agree a timeframe for the work. On completion of the workshop, an account of the proceedings should be prepared, probably in the form of a brief aide mémoire (for guidance on content see Annex 3) agreed with the senior representative of government attending the workshop. This should highlight any remaining issues that need to be resolved, and actions required, before proceeding with further planning. The draft IPB or identification report may then if necessary be finalised taking account of the deliberations of the workshop,
1: The use of WINDOWS-based proprietary software, such as Microsoft Project greatly facilitates this and subsequent progress monitoring, although the use of squared paper and pencil may be more appropriate in some circumstances.
In this case the level of accuracy desirable in cost estimates at appraisal is important. • technically. • institutionally workable. The conventional approach is rarely compatible with demand-led development. The project dossier should therefore demonstrate that the project is: • in conformity with the country’s subsectoral objectives and priorities. to avoid cost overruns in project execution which may arise as a result of insufficiently detailed designs or inadequate site exploration. the “project” may comprise a conventional investment in a specific major item of new irrigation infrastructure. without the need for any repetition of earlier work. on the basis of criteria agreed at appraisal. The outcome should be a project dossier or document that is in many respects a feasibility report: ideally it should define the project in all respects.Guidelines for Planning Irrigation and Drainage Investment Projects 62 although this may not be strictly necessary if an aide mémoire has been produced: the object should be to move to the next stage of planning as quickly as possible. and • ready for implementation. Increasingly however it is likely to comprise investment in a subsectoral programme (see Box II-3). As discussed in Part I. • economically and financially viable. • unlikely to result in any adverse social impacts without adequate compensation. In the conventional project approach it is usually necessary to complete all planning and much of the engineering design before appraisal. and not often compatible with . This has a significant influence on the extent to which planning must be completed prior to appraisal. so that the task of appraisal is one of merely passing judgement on it. rather than redrafting earlier work. PLANNING THE PREFERRED OPTION Objective and Approach Once a recommended project option has been selected and agreed between the government and financing institution. • technically sound and the best of the available alternatives under existing technical and economic constraints. environmentally and fiscally sustainable. The conventional project approach is usually adopted for investments in major infrastructure development. in the programme approach subprojects are selected and planned in detail after appraisal and loan approval. detailed planning should be put in hand. The purpose of this part of the process is to make the proposed project ready for appraisal by the financing institution. • consistent with the felt needs of the intended users.
It provided for rehabilitation. procured competitively and implemented efficiently. • decentralise irrigation funding and management through institutional reforms that would gradually move funding of irrigation and drainage investments from a centrally managed system of government grants towards a system based on regional and local public utilities which would help to recover costs through user charges and collection instruments. Agriculture Operations Division. The project was designed to be the Government’s investment programme for irrigation and drainage covering FY 1991 through 1994. upgrading deteriorated infrastructure. • fully utilise existing irrigation schemes by finishing uncompleted works. volumetric measurement of water. • monitor and help prevent environmental and natural resource degradation. completion of 23 on-going investments and construction of 3 new investments. totalling about US$ 1. • strengthen the institutional capacity of the National Water Commission (CNA) and user organisations to implement policy programmes. and thus help sustain the investments by the beneficiaries. (1991). and • optimise the use of land and water resources in the Irrigation Districts and Units. the conjunctive use of surface and ground water.2 billion. investments and maintenance. providing more adaptive research results. repair and acquisition of maintenance equipment. modernisation and transfer to users of 21 Irrigation Districts representing about 60 percent of total irrigated districts. In support of these investments the project also included environmental studies and actions. • improve water use efficiency by introducing better water management techniques. deferred maintenance of the remaining Districts. Source: Staff Appraisal Report: Mexico .Irrigation and Drainage Sector Project. . salinity problems and lack of maintenance. and rehabilitating irrigated land affected by waterlogging. institutional development assistance for CNA and User Organisations. prepared with Investment Centre assistance. and other studies and designs.Guidelines for Planning Irrigation and Drainage Investment Projects 63 Box II-3 .Mexico: Sectoral Investment in Irrigation The World Bank-financed Irrigation and Drainage Sector Project in Mexico. and training of technicians and farmers in better operation and maintenance of irrigation infrastructure. World Bank. is intended to help Government to: • sustain the irrigation and drainage sector through investments selected on the basis of rigorous economic and technical criteria.
but can be gradually accelerated as capacity is built through learning by doing. agreed levels for farmers’ contributions to capital costs and acceptance of O&M costs. . in contradiction of the intention of demand-led development. It can be applied to both new development and rehabilitation. • it can also present the great advantage of minimising the delay between completing design (thus raising farmers’ expectations) and starting construction. demand and institutional capacity for investment in subprojects. absence of adverse social and environmental impacts. as mentioned earlier. provided studies. In a programme approach it is usually inappropriate to carry out feasibility studies and detailed designs for specific schemes prior to appraisal of the overall project proposal. • A set of criteria against which subprojects can be screened during programme implementation. Nevertheless. For this type of approach. which may be limited initially by institutional capacity. but is generally more suited to small-scale irrigation or to discrete command areas within larger scale schemes. The programme approach can be adopted for a wide range of irrigation and drainage investment types. The programme approach is often preferable to the conventional project approach. To bring such programmes to a state of readiness for appraisal the following are necessary: • Firm evidence that there is scope. because. since this implies pre-selection by planners rather than farmers. there are and will be many cases when there is no alternative to this approach. minimum economic rate of return (ERR).Guidelines for Planning Irrigation and Drainage Investment Projects 64 institutional capacity building. planning and design are carried out against tight deadlines. • it can allow the implementing agency to proceed with the design work at its own pace. These might include for example a maximum cost per hectare. is therefore more amenable to participatory design and construction. Discrete developments can then be treated as subprojects within an overall investment programme. and so on (see Box II-4). and investigation and designs for these schemes can be done on a rolling basis during loan implementation. an assumption can be made on the viability of other similar schemes. • A detailed implementation plan. hence greater ownership by the users and improved prospects for successful implementation and sustainability. designs and costing of a sample of typical schemes have shown them to be viable. for the following reasons: • it can allow for development to be demand-driven.
This consists of: • First stage screening based on rapid survey using reconnaissance equipment and techniques. to confirm that irrigable land is available downstream within 1 km of the proposed dam. Rome (1995). evidenced by declared willingness to contribute towards capital cost. The information derived is then evaluated against criteria for maximum and minimum required storage ratio (ie the ratio of mean annual inflow to storage capacity) and the ratio of storage capacity to embankment volume. detailed designs. embankment volume and storage capacity is estimated using formulae developed for the purpose. • Second stage screening of those sites passing the first stage. Eritreaa The Highlands Horticultural Development Project in Eritrea includes a programme for the construction of a number of dams for small-scale vegetable production. assuming the standard cropping pattern. a: Source: Document No 122/94 TCP-ERI 6 WP2: Eritrea: Agricultural Development Project in Seraye Province . From this information investment costs per ha are compared with a budget investment ceiling that has been determined from cost-benefit analysis. FAO. and farmers are still prepared to contribute to the cost.Suggested Procedure for Screening and Appraisal of Small Dams for The Highlands Horticultural Development Project. and “Abbey level” and rangefinder measurements for dam crest length and reservoir throwback.Guidelines for Planning Irrigation and Drainage Investment Projects 65 Box II-4 . Investment Centre. typical yields and prices. investment is approved. Provided estimated costs are below the ceiling. . that the area of land to be inundated does not greatly exceed the irrigable area. and prepared for appraisal by carrying out topographic surveys. including altimeter readings for dam height. for which potential export markets exist. Following detailed analysis of the costs and performance of a number of existing dams in the project area. Once screening has indicated that a dam site is worthy of further consideration for development it is elevated from the status of “potential” to “promising”. estimation of the reliable annual availability of water (using standard formulae developed for the purpose) and potentially irrigable area (assuming standard cropping patterns and generalised irrigation requirements based thereon). However. although the project area offers numerous potential dam sites. not all of these would justify the investment costs. and that there is a demand for the dam from the community.Working Paper 2: Investigation of Water Resources Development Options in High Potential Areas of Seraye Province. the estimated dam height. a methodology was developed for the rapid screening of potential dam sites and subsequent appraisal of the more promising sites. From this.
with a similar period afterwards for finalising analyses and documentation.for instance those for major structures or main canal alignments . or it may be done by external support teams. and so on. including government irrigation agencies. the Investment Centre might be required to provide a team to review the various results. aimed at further strengthening stakeholder commitment to the project. The detailed planning process should continue the participatory approaches adopted during earlier work. prepare the economic analysis. If the work is broken down into a number of separate studies.Guidelines for Planning Irrigation and Drainage Investment Projects 66 The physical nature of the project. marketing. An Investment Centre mission for a review and consolidation of planning work and preparation of a project dossier is likely to comprise four to six specialists. the team should spend about four weeks in-country. engineering feasibility studies. local institutional capacity. Provided a SEPSS and environmental/social impact assessment/mitigation plan have already been prepared as a part of the planning process. Socioeconomic and Production Systems Survey (SEPSS). eg credit. legislation. • irrigation agronomist. and so on. including consulting companies or the Investment Centre. and whether a conventional project approach or the alternative of a programme approach is adopted will influence how planning is carried out. Planning may be a single integrated operation. and thereafter close contact should be maintained with all other stakeholders. integrate the various reports and working papers. agro-processing. shallow soils. including the following: • water resources/irrigation engineer. In general. or it may be broken down into several parts. and • institutional specialist. or operational difficulties that have been revealed by the work to date. Such a review may involve further field work to confirm earlier impressions and to visit sites of particular importance . Thus if an external support team is involved. including if possible any representatives of the users and any losers. neither a sociologist nor an environmental specialist would be required unless outstanding issues still needed to be resolved at this stage. local consulting companies and NGOs. • economist/project analyst. Some or all of the work may be carried out by local planning groups.also to inspect particular problems such as areas of poor drainage. and draft or compile the required project dossier. rural infrastructure. WUAs. its work will often begin with a round-table meeting with the senior representatives of the ministry or department(s) responsible for water resources and irrigation development. such as the Environmental Impact Assessment (EIA). . plus specialists in topics specific to the type of development being proposed.
but also in terms of organisation. need for credit. and so on. and one using a simple river diversion for surface irrigation of rice by small farmers. Whether a conventional project approach or the alternative of a programme approach is adopted. its information needs. can be based. environmental.Guidelines for Planning Irrigation and Drainage Investment Projects 67 As elsewhere in the planning process. • Aerial photography and mapping. at which all stakeholders are given an opportunity to influence the final version. What will vary is the timing of the various planning activities in relation to appraisal.as should Appendix 1. The list of activities which follows should be read with that in mind . financial and economic criteria for viability. analysis and engineering design. repetitive works can be based on sample type designs. depending on the nature of the project or programme. to define the physical infrastructure to be developed or type of improvements intended. social. since it further encourages stakeholder commitment. For example there are obvious differences between a project using groundwater and sprinklers for the intensive production of vegetables by commercial farmers. Activities for Planning the Preferred Option Engineering Studies Engineering studies will be necessary for most irrigation and drainage investment projects. and project cost estimates. and what has already been achieved in terms of data collection. accurate to plus or minus 15 percent. whether for new development or rehabilitation. The degree of detail required will depend on the scale of the works. Such studies should include some or all of the following: • Interpretation of satellite imagery. These projects are not only different physically. The work involved and level of detail required for planning the preferred option will vary. markets. The object of the engineering studies is to provide the necessary technical information to permit the preparation of preliminary designs upon which estimates of quantities. which gives a suggested outline for a typical project dossier. it will still be necessary before funds are finally committed to demonstrate that individual investments can satisfy the technical. It also helps to promote a sense of ownership among the stakeholders if a concluding workshop is arranged to discuss the draft project dossier. manual site surveys (see Appendix 1 for indicative scales). the participation of the financing institution’s project controller or task manager towards the end of the team’s in-country work is usually a great advantage. extension. .
2: See: FAO Irrigation and Drainage Paper 29. • Estimates of water demand for the existing and proposed cropping patterns. water availability should be simulated to provide an indication of likely availability to meet demand over the period of analysis of the project (eg 25 years). Rome. • Estimates of surface and subsurface drainage requirements. • Studies of present utilisation and future demand for surface and underground water and the prospects for other developments within the same catchment that could affect water availability. FAO. These studies may include a consideration of the possibility of designing for deficit irrigation (see Box II-5). Water Quality for Agriculture (revised 1985). This should permit the prediction of the likely year-by-year cropping intensity. and FAO Irrigation and Drainage Paper 48. . • Groundwater studies to investigate water table depth. consideration may be given to the use of agricultural drainage water and municipal waste water for irrigation2. rather than assuming one based on the area that it would be possible to irrigate if the 80 percent probability (say) flows occurred each year1. see Paper No 78 in Branscheid V. Conversely. Assessment of the emergence of competing demands for water for urban and industrial uses that could influence availability for irrigation. including a correlation of rainfall with run-off to extend or infill records of surface flows. catchment area and assumed run-off coefficients may be acceptable. Consideration should also be given to the possible crop sequencing and rotation that farmers might adopt. based on the use of the FAO CROPWAT and its computer database CLIMWAT or an alternative locally developed method of estimating cropwater requirements if this is appropriate3. • Water quality analyses.Guidelines for Planning Irrigation and Drainage Investment Projects 68 • Surface water resources studies. the nature of recharge and sustainable yield of aquifers. Where practicable. as is the widespread practice in Southern Africa. 3: For example the use of locally developed Et/Eo ratios and US Class A pan evaporation data. The Use of Saline Waters for Crop Production (1993). For small ungauged catchments a synthesis of rainfall. and cropping patterns that avoid unreasonable peaks in water demand. Investment Centre. Irrigation Water Management Briefs: 100 Collected Papers. 1: For an example of a spreadsheet for doing this. In any case it will be necessary to assess water quality and any aspects that could limit its use for irrigation. based on a design storm of selected return period and locally obtained data on subsoil drainage and water table depth.
with the exception of rice.Water Scarcity and Deficit Irrigation FAO Irrigation and Drainage Paper 33a provides a detailed exposition of the relationship between water supply and yield for various crops. a: FAO Irrigation and Drainage Paper 33. careful consideration should be given to whether such a decision could lead to greater inequity in the supply to tail-enders. other than simply “old age”. Yield Response to Water. The modalities for achieving this will vary from case to case. a detailed diagnostic operational study to identify the present condition of the infrastructure. Furthermore deficit irrigation usually implies sophisticated water controls and accurate water management that may be inappropriate for smallholders. before taking a decision to design for deficit irrigation. and this can sometimes mean the difference between viability or otherwise. FAO. This is the time to enlist the support of farmers. constraints. The point at which the response curve flattens out marks the beginning of diminishing marginal returns to additional water: small reductions in water supply below that required for maximum evapotranspiration therefore tend to result in only marginal reductions in yield. Supplementary topographic survey may also be required to verify original construction drawings and to provide additional technical information. Deficit irrigation can also lead to even greater economic gains than maximising yields per unit of water for a given crop: farmers are more inclined to use water more efficiently and returns can be optimized through more water-efficient cash crop selection. or perhaps greater than usual reluctance to pay for O&M. and maximum yield is unlikely to be the optimum yield per unit volume of water applied. but the yield/water response curves of most field crops. to obtain details of the past performance of the scheme and what brought about the need for rehabilitation. Rome (1979). sources of inefficiency and the scope for efficiency gains. • For schemes being considered for rehabilitation and upgrading. for example by planting cotton rather than sugarcane or rice. have flat peaks around the maximum evapotranspiration. The social and economic efficiency implications of deficit irrigation are obvious: commercial operators apply the concept to increase farm profit. It is also the time to encourage demand-led investment by establishing what farmers would like to see improved and the extent to which they are willing or able to contribute to the cost of improvements.Guidelines for Planning Irrigation and Drainage Investment Projects 69 Box II-5 . on public schemes more people benefit when water is spread over a larger area. Drought tolerance varies considerably between species and stage of growth. as peak irrigation requirements and canal discharges are reduced. However. but the best channel of communication with farmers is usually through an elected . Planning for deficit irrigation can lead to substantial capital cost savings. in any case the ratio of the value of goods produced to the amount of water consumed is increased. provided the cost of developing the incremental area is low.
As in the SEPSS (see below). FAO. • Detailed cost estimates for the civil works and their operation and maintenance. broken down into foreign and local costs. depending on which is likely to deliver the quickest result. and local university groups. • Operational hydrology studies on the proposed new or rehabilitated distribution system. Agricultural and Marketing Studies and the SEPSS Depending on the nature and complexity of the proposed project and the availability of detailed information regarding the without-project situation. bearing in mind that rehabilitation might accelerate waterlogging and salinisation by making more water available. as well as any perceived problems. suitably experienced NGOs can be contracted to assist in the process. FAO Soils Bulletin 422 provides indicative estimates of output rates for soil survey teams. This time consuming activity should be carried out by the government soil survey or private contractors/consultants. to establish practical operating schedules (for which the FAO SIMIS programme1 may be found useful). particularly for rice. Rome (forthcoming). is of special importance for the estimation of irrigation scheduling and irrigation water requirements. Soils and Land Capability Studies If the available soils and land capability mapping are found to be inadequate. This is usually carried out by LPGs. 1: SIMIS (Scheme Irrigation Management Information System). • Preliminary engineering designs for the scheme layout. often to considerable advantage. Soil type. Specialised briefing and support for field work is often given by staff of the Investment Centre. as it affects infiltration and permeability and waterholding capacity. main structures and water supply/drainage system. • Preliminary engineering designs for roads and other infrastructure. The SEPSS is used to verify the assumptions underlying the project concept. thus contributing to overirrigation. it may be necessary to organise a socio-economic and production systems survey (SEPSS). FAO Rome (1979). seepage predictions (which are of particular importance in decisions on whether or not to line canals). including automatic controls if these are considered to be an appropriate technology. slope stability analysis and creep ratios. focusing particularly on water saving measures and ease of farmer operation and management. • Geological and/or geotechnical investigations for foundation design. 2: Soils Bulletin 42: Soil Survey Investigations for Irrigation. with special attention paid to drainage aspects. priorities and areas of convergence/ divergence between government and the intended users.Guidelines for Planning Irrigation and Drainage Investment Projects 70 committee of a water users’ association or similar body. arrangements should be made to upgrade this to an acceptable scale and standard (see Appendix 1). including local consultants or consulting companies. .
• the existence of any group activities within the area (eg for marketing and input supply. • for farmers in development schemes similar to those proposed. gender relations and disaggregation of labour. • if irrigation already exists. • any conflicting or competing demands for labour. constraints and means of overcoming them. including contributions towards capital costs and recovery of O&M costs. on-farm production. in the project area. The investigations should be designed to establish: • present land use. and availability of draught power. • market opportunities and the implications for potential cropping patterns. • intra-household dynamics. labour and capital. and alternative sources of income from offfarm employment. and the responsibilities of husband and wife as family providers. control of crops and income from their sale. farm size. • people’s aspirations and expectations. • the likely impact of the project on any of the above.Guidelines for Planning Irrigation and Drainage Investment Projects 71 The investigation may employ rapid rural appraisal techniques. as well as the demands that the project will place on them . time available for crop and livestock production and other activities. . crop varieties and yields. FAO Rome (1992). petty trading and remittances. on-farm irrigation practices compared with expectations at initial project planning. problems. 1: FAO Investment Centre Technical Paper 9: Sociological Analysis in Agricultural Investment Project Design. 91. • the household economy. an indication of yields and production. access to and control over land. yields and trends. It should assist in assessing farmers’ perceptions and likely response to the opportunities that the project is expected to offer. use of inputs. especially the extent of farmer interest in the project and implications for project planning. • extent and methods of existing irrigation. irrigation O&M) that might have a bearing on the potential for management transfer to irrigators. • the respective roles of the public and private sectors in input supply and marketing. farming systems and practices. • the scope for cost recovery. an explanation for any differences.for example their possible contribution towards capital costs and subsequent O&M costs. if any. Techniques for carrying out the work required are suggested in Investment Centre Technical Paper No. but should in any case continue or expand upon the process of participatory appraisal and planning that may have been initiated during the engineering studies. past and present irrigated cropping patterns. and the reasons for any decline in areas planted or yields obtained under irrigation. from the farmers’ perspective.
a full environmental impact assessment (EIA) and possibly also a land acquisition assessment (LAA) will be required. and health aspects. the proportion of owner and tenant-operated farms. Depending on the circumstances of the project and its location. the project has been placed in environmental category “A” (according to the World Bank’s classification or the equivalent . possibly based on the ICID’s environmental checklist referred to earlier. displacement of human settlements and the impact on oustees. or a consulting company. Environmental Impact Assessment and Action Plans If. degrees of fragmentation. it will normally be necessary to prepare a mitigation plan for reversible impacts. it may be necessary to carry out marketing studies within the country. again possibly based on the ICID checklist. proposed legal provisions and regulatory mechanisms for minimising adverse impacts. pollution1 or depletion of groundwater supplies. . such as a lack of secure tenure or water rights. It should propose an environmental action plan (EAP) and if necessary a land acquisition plan (LAP) which will include measures such as compensation for oustees. and type of tenure. it may be necessary to arrange for a cadastral survey to establish the existing land tenure pattern and its implications for project planning.Guidelines for Planning Irrigation and Drainage Investment Projects 72 Depending on the intended cropping pattern and whether the viability of the project relies on the inclusion of high value crops. although a separate EIA or LAA will not usually be required. All identifiable costs should be itemised for inclusion in the cost stream of the proposed project. and provision for systematic monitoring and evaluation. which could inhibit participatory development and capital cost contributions by the users. This should provide data on the size and distribution of properties and farms. customary or otherwise.see Box II-2). for land tenure and water rights should be examined in detail. 1: eg as a result of increasing use of pesticides and fertilizers. which may include a monitoring and evaluation system. The EIA/LAA may be carried out by government or its LPG. Data should be interpreted in terms of farmer interest in developing irrigation. at the stage of conceptualisation. Land Tenure and Water Rights Investigations The existing arrangements. For category “B” projects. This should establish whether there might be any obstacles to successful implementation. The EIA/LAA should consider inter alia potential erosion and sedimentation hazards. or overseas if export crops are proposed. waterlogging and salinisation.
organise and manage the proposed project therefore demands particularly detailed and careful study. and to identify those whose means of livelihood might be affected favourably or unfavourably by the investment. Recent thinking in management science suggests that the conventional mechanistic approach to institutional analysis may no longer be appropriate. that could form the basis of future WUAs. this expectation ignores the influence of individual styles of management and behaviour (see Box II-6). Successes and failures and the lessons learned . including extension. Where customary rights exist. operation and maintenance. Should planners have any doubts about the capacity of key institutions to fulfil their responsibilities. it is usually best to leave decisions on redistribution to customary or traditional authorities. Any other initiatives towards promoting communities’ management of their own affairs and resources should also be assessed. It is now realised that much deeper analysis is required. Institutional capacity assessment may be carried out by government as a form of self-analysis but it is likely to benefit from an independent external review. it should be reconfirmed that this issue is not likely to prejudice the proposed project. This is because although outwardly similar organisations may in the past have been assumed to behave in similar ways. Special attention should be given to evaluating farmers’ organisations. as well as local systems of village administration. and the views of the present users taken fully into account. . The assessment of institutional capacity to implement. and in framing proposals for implementation. as well as the government departments or authorities responsible for irrigation development. It should cover rural institutions and support services operating in the project area. research and credit.Guidelines for Planning Irrigation and Drainage Investment Projects 73 Recommendations for land titling. Although the issue of international water rights should have been dealt with in earlier consideration of the project options.ie which institutional arrangements are working satisfactorily and which would need improvement or reorientation under the project . organisation and management. including WUAs or savings and credit clubs and/or marketing and supply cooperatives. customary or otherwise. There may also be a corresponding need to examine and inventorise water rights.should be noted. Institutional Capacity Assessment A key condition for sustainable development impact is that the implementation requirements of the project should be matched to local institutional capacity. redistribution or consolidation to facilitate irrigation development should be approached with caution. expert advice should be sought from a management/institutions specialist. or their own ability to analyse them. unless there are very good reasons to do otherwise. These should all be considered in deciding on project scope.
at “normal” rates of working. and most of the standard techniques from work study are usually impossible to apply to implementation of irrigation and drainage projects in developing countries. for example. Even more difficult. but the temptations on those being analysed to manipulate the results are strong. subjective estimates by those likely to be involved of the percentage of their time currently utilized will be the best available measure. However. is the likely response to changes in incentives and workload that could be implied by the proposed project. as the information could be damaging to people who offer frank assessments of current underloads. This part of the assessment may also be approached by structured . however this kind of enquiry needs caution. may be assessed through interviews with senior staff and a review of written regulations and procedures. and any restrictions or obligations placed on it. Estimating incremental workload from proposed additional activities can be usefully done by critical path analysis and resource scheduling methods. there is the quantitative question of workload.Guidelines for Planning Irrigation and Drainage Investment Projects 74 In assessing the capacity of an institution to take part in a proposed project or programme a number of questions need to be asked: • Are the formal aspects of the situation right .ie are legislation or administrative changes needed to enable the institution to carry out the tasks proposed. additional proposed activities can be handled by the available staff. and the ratio of senior to supervisory to field staff. In addition. The other part of the equation. In many cases. is more difficult. using project management computer software. or to expedite execution? • Is the organisation quantitatively capable of executing what is proposed. Activity sampling and short runs of diary keeping by staff may help. assessing numerical capacity. the size and timing of peaks in the workload can be sensitive to guesswork about workrates. but important to quantify. When assessing manpower resources. to rectify obvious configurational problems. ie whether. in terms of workloads on suitably qualified staff and availability of other resources to permit the performance of the tasks to be undertaken? • How likely is it that the perceptions and behaviour of those in and around the organisation will frustrate the proposed activity? • What effective methods can be identified to overcome negative behaviours and perceptions? The remit and formal structure of an institution. judgements should be made on the level of technical skills: for example are the qualifications and experience of the staff adequate for the tasks assigned to them? The staffing structure can be examined by looking at the ratio of staff to clients at different levels. Most of the foregoing relates to qualitative aspects of understanding particular organisations.
ie what the task is. how these are made. a general mood affecting the quantity and quality of effort put into work. it will lead to high productivity from a given set of staff and resources. Features to look for might include whether lines of authority conflict with lines of consultation. what is sound managerial practice. or parastatals. It is important to know who makes the ground rules and key decisions in the institution. how work is orchestrated. not always recognized as such. Objective: To understand the way the institution currently behaves. This should enable the planner to understand its likely relationship with a new project. and to attempt to anticipate its reaction to possible alternative interventions. . what strategy and tactics will best achieve a given end.Institutional Capacity Analysis The following are some essential considerations for institutional capacity analysis. with respect to other related ministries. the central planning agency. budget. pursuing some line of action with an unambiguous intention. and if it is exercised. staffing. organigram. or actually impede it? The position of the institution within the organisational structure of the agriculture and water sectors can also be crucial . etc. For example does the flow of funds support the degree of decentralization required. additions and restrictions. using the best available approach. organisations should behave like a very clear-headed individual. and so on. Questions of centralized versus decentralised structure often emerge. Approach: The conventional approach to institutional analysis has tended to rely strongly on defining the formal aspects. and it is important to understand the relationship between national.for example. job descriptions. • That there is something called morale. vacancy and turnover rates. • That there is something called leadership. such as remit. This approach has been driven by a number of assumptions. Box II-6 . qualifications in relation to specifications. and whether the institution has a defective configuration. by “motivating” staff. • That the “rational actor model” of organisations is the most appropriate. focusing on perceptions of what needs are currently satisfied by their work and how far extra input of effort is seen as likely to yield relevant rewards. • That all reasonable people share the same view of the working situation. Organisational charts can be useful in indicating the degree of complexity of the organisational structures. According to this. provincial and lower-level organisational structures.Guidelines for Planning Irrigation and Drainage Investment Projects 75 interviews with staff in the strata affected. and if necessary to redesign working arrangements.
as governed by “logic” (and some set of assumptions. From this perspective. ie parent bodies. or to scale-down the project to suit realistic expectations of the implementation ability of existing institutions. Finally. Secondly. Most importantly. regulators. More recently. it does not provide a ready recipe for project . and using these data to construct the conceptual framework for the subject. which assumes it is normally possible to work out the basic structure of a problematic situation by reason alone. for investment projects to fund the temporary hiring of outsiders who had the skills needed to fill these gaps. ie organisational cultures are part of the situation. the proposals will have to address the functional problems referred to above. therefore. It accepts that organisational politics are real .the fit between its task load. and the project is likely to involve measures for building sustainable institutional capacity.and their effects can be anticipated. It was common. the emphasis in management science has moved towards examining what managers (and other inhabitants of organisations) actually do. This is a more radical change than may appear: from the analytic approach.is very important. which may compete for control of policy and other parts of the action. to a synthetic one. such as those above). it suggests that different institutions may come to very different understandings of how best to get things done. In either case. which implies that uncovering the most potent ideas about the basic structure and phenomena in a situation may require field investigation. and which may be subject to partly contradictory pressures from the external coalition.Institutional Capacity Analysis (cont’d) The above approach is part of an orientation towards management that goes back to the early part of the 20th century. these define “reasonable” working roles and behaviour. First. it has suggested that the knowledge of the formal structure alone is not enough to indicate whether or not a particular institution will fulfil some intended function. The outcome of the assessment should be the basis of an institutional plan for the project. This may be to strengthen existing resources to match the implementation requirements of the project. The synthetic approach has called into question all the assumptions listed above. an organisation’s configuration . the public. among other things. while such technical assistance may successfully ease some project implementation problems. and the nature of its external coalition . In the past the implementation of a project often created demands for skills which were either in short supply in the concerned country as a whole or inaccessible to the involved institutions. the way its internal activities are orchestrated. it suggests that real organisations typically behave as coalitions of individuals and interest groups. Experience has shown that. it has produced very different models of leadership and motivation.Guidelines for Planning Irrigation and Drainage Investment Projects 76 Box II-6 . and which emphasises what people should do. etc.
Training should go beyond merely equipping people to take over the role of technical assistance staff. with the full agreement of all concerned parties that recourse to outside assistance is essential. a post-graduate student at a foreign university does the field work for a thesis in his/her own country. bilateral and multilateral agencies (such as FAO and other UN specialised agencies) and NGOs. but one of the dilemmas is how to combine academic and on-the-job training in the most effective manner1. see the World Bank/USAID Irrigation Training in the Public Sector: Guidelines for Preparing Strategies and Programs. So as to avoid subsequent misunderstandings. Reference should be made to the preferred sources for the particular types of technical assistance required. . Sometimes these can be combined when. 1: For guidance on this aspect.Guidelines for Planning Irrigation and Drainage Investment Projects 77 success. terms of reference for each technical assistance assignment should spell out as precisely as possible the functions and reporting arrangements. 1989. for instance. it should be explained how it would be phased out and how the functions would be subsequently assumed by local staff. and with the understandable tensions which occur when foreigners occupy senior and well-paid posts denied to the nationals of the country. taking into account both local and international consulting firms. Training arrangements must be planned to ensure maximum benefit to local counterparts and a smooth transition after the end of any technical assistance. because of the lack of experienced persons to assume the roles of the external technical assistance experts once they have left. The key to reducing dependence on technical assistance is a good training programme for national staff. Many technical assistance staff find themselves so busy fulfilling their routine functions that they give insufficient attention to training the staff who should succeed them. such as the completion of engineering designs. and the planning of training components aimed at satisfying these. If project management and services are heavily dependent on outside technical assistance the sustainability of the project is likely to be in doubt. An important part of project design is the projection of wider manpower and skills needs. Problems also arise with the selection of technical assistance staff who may not fulfil expectations. The choice has to be made between national training and training in overseas academic institutions. therefore. has to be done with great care. as well as the minimum qualifications. If the technical assistance is not for the completion of a finite task. or when a foreign university is “twinned” with a local institution. for candidates. Problems also occur when their intended successors are absent on training for a large part of the assignment period of technical assistance. Washington DC. thus limiting the opportunity for side-by-side work. Proposals for technical assistance should be based on rigorous analysis of manpower needs and skill gaps and should only be put forward as a last resort. Economic Development Institute of the World Bank. The planning of a technical assistance element of a project.
or into quantities of the various categories of work with unit costs. in terms of the users and the overall project. . However. this may not necessarily be essential if there is a reasonable chance that trainees will remain in the country. materials and labour. Sanitation and Other Social Infrastructure • Project Coordination Components should be further broken down by expenditure categories. local costs and taxes and duties. which may include: • Irrigation and Drainage Infrastructure • Institutional Support • Crop Development • Training • Research Support • Input Supplies • Road Development • Water Supply. to classify the items against which disbursements will be made under the project. Estimation of Project Costs and Benefits Estimates of Project Benefits Prices of inputs and outputs should be prepared and entered into the PC-COMPASS suite of programmes to generate crop budgets. Skilled and unskilled labour components should be separately identified. for each objective or component of a project. including anticipated users’ contributions. farm models and estimates of the incremental benefits. locally available construction materials (such as sand and stone) and/or cash. Estimates of Project Costs Cost estimates should be prepared for the various project components. or summary accounts. and all costs broken down into foreign exchange costs.Guidelines for Planning Irrigation and Drainage Investment Projects 78 If a training programme is to be effective in building institutional capacity. there are likely to be several categories of expenditure. the costs should be broken down either into plant. Separate tables should also show the expected sources of finance. which might include the provision of construction labour. but working in the private sector or for NGOs. such as: • Civil Works • Equipment • Technical Assistance • Training • Incremental Operating Costs Depending on whether it is intended to construct the civil works by direct labour/force account or by contractor. Thus. project support for training of individuals may have to be linked to their agreement to work in the sponsoring implementing agencies for a reasonable length of time after the completion of their studies.
For most investment projects. their vehicle operation and office running expenses. The cost streams used in the construction of the COSTAB tables referred to above should. including irrigation and drainage projects in particular.but not price . costs are bunched at the beginning of the project. Operating costs for participating farmers may be derived from the crop budgets and representative farm models aggregated to give the overall project estimates. attention here is confined to the Economic Rate of Return (ERR) which may be defined as “the rate of discount at which the total present value of costs incurred during the life of the project is equal to the total present value of benefits accruing during the same period”. salaries and other benefits for the proposed operating staff complement. taking into account differences in the timing of expenditure and income. Residual values of project-funded assets should be taken into account as benefits. The application of a discount factor enables these costs and benefits to be compared on a present value basis.Guidelines for Planning Irrigation and Drainage Investment Projects 79 Annual operating costs should be estimated on the basis of energy costs for water delivery. . 1: If the life of certain project-financed investments is less than the assumed life of the project (which is nearly always the case). maintenance and replacement costs1 of project works. The life of the project is usually taken as the period corresponding with the useful life of the major investment components.a residual value may be applied earlier in the project life and attributed to project income. usually at the end of the project life. and costs should be entered into the PC-COSTAB module of PC-COMPASS. as well as those arising from providing services and running the organisation and management system for the project.contingencies) plus the operating.for example when equipment used in construction is transferred to another project . while benefits only begin to accrue after a lapse of time. They should also include the operating costs incurred by the farmers. Economic Analysis Economic Rate of Return There are several measures that can be used to demonstrate the economic feasibility of the project: each has its own advantages and disadvantages. as mentioned. Consequently benefits earned and costs incurred in the near future have higher values than similar benefits or costs arising several years hence. include the capital costs of the project (including physical . Both O&M costs and operating costs should be broken down in a similar way to capital costs. provision should be made for the cost of their replacement when this is needed. However. although in some cases . and any quantifiable social .or environmental costs. Estimates of annual maintenance costs should usually be based on a fixed percentage of the capital cost (see Annex 2 for details). and typically ranges from around 15 to 25 years for irrigation and drainage investments.such as land acquisition and resettlement .
but in practice. distortions (for example official minimum wages. assessing the opportunity cost of the goods. derivation of economic prices requires two steps: first. the forecast prices should be converted to constant prices for. In most cases it is possible to assume that. without the project. Before use.Guidelines for Planning Irrigation and Drainage Investment Projects 80 The benefit stream will normally consist of the value of the incremental output of the project. which require that adjustments be made to the financial price. locally-made materials or many fruits and vegetables. In other cases however there may be historical evidence to suggest that. For non-traded goods. and a decision must be taken as to whether to compensate for distortions in the pricing of foreign exchange through the use of a shadow exchange rate or through the application of conversion factors to the price of nontraded goods. It should be borne in mind that for non-traded goods. the date of compilation of the project dossier or appraisal. Nevertheless they should be interpreted with caution. applying to the opportunity cost the 1: If the analyses are carried out correctly. and making allowances if necessary for quality differences. such as farm labour. the use of conversion factors is to be preferred since it allows for differentiated treatment of different categories of traded goods1. grains or oilseeds. internal transport and distribution. To establish this value it is necessary to compare what would happen without the project with what would occur with the project. but no better series has been developed and their use has the advantage of ensuring a measure of consistency in pricing between projects and countries. production would continue either to rise (as a result perhaps of spontaneous small scale irrigation development) or to fall (perhaps because of progressive increases in soil salinity in the absence of drainage). secondly. Direct and indirect transfers (such as taxes or subsidies) are eliminated in the calculation.) exist in some cases. prices are usually derived from forecasts prepared periodically by the World Bank. However. the present (ie pre-project) situation would persist. For those inputs which could have a significant bearing on the viability of the project. . a distinction must be made between traded and non-traded goods. It is then usually necessary to convert these figures to farm-gate prices by working backwards from the international forecast price. All costs and benefits should be expressed in economic terms. handling. the final result should be the same. In the case of internationally traded commodities such as fertiliser. value-added tax etc. the aim is to set prices which reflect their opportunity costs. even in the absence of any intervention. which may be higher or lower than the nominal price (but may be equal to it where competitive markets exist). The market price equals the opportunity cost in a truly competitive market. say. making adjustments for the cost of shipping. The accuracy of these forecasts and the related assumptions on inflation have often been questioned on the basis of retrospective assessments of earlier forecasts.
should be valued at the same opportunity cost. However. The rate of return can be calculated using the COSTBEN module of PCCOMPASS. or from delays in implementation due perhaps to staffing. may result in a slower build up of production attributable to irrigation and hence to reduced benefit streams. in turn. experience has shown that the real opportunity cost is generally much closer to actual wage levels. or the effects of a succession of years with lower than expected water availability. It used to be customary to assume opportunity costs well below wage levels. whereas in the slack season it may fall considerably below the amount actually paid to farm workers. Such delays. women and children. This may then be judged against criteria such as the opportunity cost of capital in the particular country where the project is to be implemented. land acquisition or procurement problems. the opportunity cost is likely to be close to the prevailing daily wage rate. Risk and Sensitivity Analysis An assessment should be made of the extent to which the proposed investment implies risks for the country and for the project. Risks should be explicitly identified and their possible impact on the economic viability of the investment and on its sustainability examined. Risks may also be derived from exogenous factors such as unexpectedly large rises in input prices or falls in commodity prices.the minimum ERR conventionally acceptable to many financing institutions (but one which is probably still considerably above the long-term opportunity cost of capital). since in some cases this may be important.Guidelines for Planning Irrigation and Drainage Investment Projects 81 appropriate conversion factor. As a very rough rule of thumb. whether paid in cash or kind or contributed free of charge by farmers. If possible a distinction should be made between the opportunity costs of the labour of men. Guidance on appropriate conversion factors can usually be obtained from economics staff of national planning agencies or of the financing agencies. when the total rural labour force may be occupied. Seasonality is often a key factor here: in seasons of peak activity. Caution and close scrutiny are therefore indicated before assigning low opportunity costs for labour. Reductions in benefits could also result from lower than expected yields. slowness of mastering methods of irrigated farming. All incremental unskilled labour employed at a particular time. the project analyst might recognise that the project is in the “danger zone” if the rate arrived at is less than about 10 to 12% . Unskilled labour is the most important non-traded commodity in most projects. Possible sources of risk include the danger of cost over-runs stemming from inaccurate estimation of quantities in civil works construction. .
Securing beneficiaries’ participation is a fourth one. If there are significant government revenues from taxes on agricultural output. or irrigation water charges . and several other examples could be quoted. The extent to which cost recovery rates and mechanisms . If the project is intended to bring special benefits to women. This implies estimating the foreign exchange component of both investment and operating costs.Guidelines for Planning Irrigation and Drainage Investment Projects 82 There are also risks that do not lend themselves to quantitative analysis.for example contribution of free labour for construction. but expand to cover the other major areas of concern. Risks of an environmental nature should be addressed as part of the assessment of the project’s environmental impact. the options that spread the benefits most widely and equitably should be chosen from those showing the highest ERR. If the overriding consideration in project planning is the economic return on investment. On the other hand the aim might be to maximise the number of beneficiaries subject only to each component exceeding a minimum ERR. The discussion of the risk factors should not be limited to quantitative analysis. trading. processing or export. health. Fiscal Implications and Cost Recovery Estimates should be made of the net cost of the project to the government fiscal balance. Income Distribution. Given the catalogue of irrigation projects which have gone into decline upon conclusion of the disbursement period. The efficiency of the public administration (unless it can be linked to a quantifiable determinant of output such as irrigation efficiency) is another. Effect on Balance of Payments Where this is relevant to the justification of the project. these benefits should if possible be quantified. The relative weight which is given to social versus economic criteria in deciding on the balance between components is often important. The case of government commitment is one. Social Impact and Poverty Alleviation The expected impact of the irrigation investment on the distribution of incomes and poverty alleviation in the project area should be assessed. the extent of a continuing net call .would cover the capital and operating costs of the project should be examined. drawing attention to the possible need to take corrective measures before or during project implementation. Other benefits may include improved water supply and sanitation. nutrition and education. these should also be quantified and taken into account. It should be shown that these impacts are consistent with the subsectoral strategy. an estimate should be made of the net impact of the proposed irrigation development on the country’s balance of payments. Availability of domestic financial resources to cover the government share of project costs is a third example. then comparing this with the foreign exchange gained by using the incremental project output either to increase exports or to substitute for imports.
the preparation of an implementation plan should enable them to gear up for a start to implementation as soon as funding has been approved. Further guidance on economic analysis is given in Investment Centre Technical Paper 7. including recruiting or redeploying staff with the required skills and experience. Many of the actions required as a condition for loan effectiveness will require administrative steps involving no significant expenditure. An assessment should then be made as to whether the government would be in a position to sustain these obligations once external funding ceases.for example an on-going commitment to scheme O&M costs or subsidies on inputs . on all activities to be undertaken. To encourage smooth and rapid progression from appraisal by the financing institution to project start-up and loan disbursements. Planning for Implementation One of the most common reasons for delays and defects in implementation is difficulty by the implementers in taking all the steps needed for loan effectiveness and disbursement. as appropriate to the level of experience and capacity of the implementing institution. and to initiate project activities.Guidelines for Planning Irrigation and Drainage Investment Projects 83 on government funds . • initiating necessary institutional reforms. it is essential to prepare a detailed implementation plan for the period leading to start-up and extending through at least Project Year 1 (PY1). They may include: • preparing an annual work plan and budget for the first year of the project. 1: Such as Microsoft Project. and entering this into government’s budget for the financial year. With the participation of the institutions concerned. If the practitioner is not familiar with this. • arranging staffing for project implementation.should be quantified. Scheduling should preferably be based on critical path analysis. and how much time is required to achieve them. and training staff for new functions that they will have to perform. it is better to use a pencil and squared paper rather than not preparing a schedule at all: the act of committing thoughts to paper or a computer screen often surprises even the most experienced practitioner when it is discovered how many activities are involved. All activities should be scheduled. This should contain step-by-step guidance. others may require some budget outlay. giving their estimated duration and earliest and latest dates for achieving both project start-up and the targets for PY1. either from the financing institution’s project preparation facility and/or government budget. • opening a special bank account to receive project funds for local disbursement. . It should also clearly identify who is responsible for each activity. for which project management software may be used1.
once the investment proposals have been approved by government. • preparing operational and accounting manuals. The Project Dossier The project dossier or document should facilitate appraisal. setting out procedures to be followed in project implementation. targeting usually receives special importance and a separate chapter on the target group justifying their selection will be necessary. creation of autonomous authorities for bulk irrigation water supply). and to briefly describe the laid down procurement procedures2. engineering investigations and designs for initial construction work. which are aimed deliberately at reducing poverty. if government is unfamiliar with the requirements of the financing or cooperating institution1. 1: In the case of IFAD-financed projects a cooperating institution is appointed to provide supervision. It is emphasised however that it will generally facilitate appraisal if the format used matches that required by the financing institution concerned. so that. • carrying out topographic surveys. Thus the proposed content and layout should if possible be discussed with the project controller or task manager of the financing institution concerned before drafting commences. and allocating responsibilities to the different categories of implementer (eg the ministry of finance. • drafting requests for proposals/bids for external technical assistance (eg from NGOs or consultants). irrigation agency. . reference may be made to the various guidelines that may be issued from time to time by the financing institutions. 2: For this purpose.Guidelines for Planning Irrigation and Drainage Investment Projects 84 • drafting and initiating the enactment of legal provisions (eg for WUAs. aerial photography and mapping. and Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency. appraisal can focus on issues remaining and need not go over old ground. • informing intended beneficiaries of the impending availability of funds for community-based or individual demand-driven developments and creating the conditions for them to generate proposals that meet their own aspirations and qualify for assistance. as well as their sample bidding documents if necessary. and if necessary permits reproduction of entire sections for inclusion in the appraisal report. It is often useful. satellite imagery. eg the World Bank’s Procurement Under IBRD Loans and IDA Credits. for example. The requirements will vary between financing institutions: for IFAD-funded projects. Annex 2 provides details of the content and scope of a typical project dossier or document. for the implementation plan to suggest the scope and content of the annual work plan. • preparing procurement packages for plant and equipment. NGOs and farmers).
. • Technical assistance and training requirements. and/or participatory joint management. but modified and deepened to reflect the findings of later investigations. • The estimated changes in cropping patterns and yields expected as a result of the development. or to a financially autonomous irrigation authority dependent on the users for financing. for quality control of design and construction. • The suggested legislative and regulatory framework for WUAs and other management organisations proposed. published by FAO with IIMI. The project dossier should describe: • The irrigation and drainage works and other hardware which are proposed for financing. • Marketing possibilities and forecast prices. 1: Practitioners are referred to Water Report 5. and the administrative mechanisms for a rolling annual expenditure plan and the flow of funds . • The implementation plan. operate and maintain it. with job descriptions. which contains selected papers from the International Conference on Irrigation Management Transfer held in Wuhan. which may include allocating or transferring responsibility to the users1. Irrigation Management Transfer. for project coordination and each of the project components. the document should clearly demonstrate the compatibility of the proposed project with existing capacity to implement. including any special supervision requirements for subproject approvals within a programme of support. • The organisational structure decided upon for O&M. • The proposals for water charges and cost recovery mechanisms. China in September 1994. and the rate at which these are expected to occur. In particular. • The expected phasing of this development. • Institutional responsibilities and staffing requirements for project implementation. in view of the emphasis now placed on the requirements for implementation.Guidelines for Planning Irrigation and Drainage Investment Projects 85 The project dossier should usually contain a description of the project rationale and planning considerations.with particular attention to funding channels if expenditure is to be made by local or regional administrations. • Procedures and criteria for screening subprojects for selection within sectoral programmes. • Details of expected supervision of implementation by the financing or cooperating institution. This provides a useful source book on management transfer. reflecting subsectoral strategy. • Mechanisms adopted for users’ participation in design or proposals for participation in implementation. which is likely to repeat the arguments developed first when the investment was being conceptualised.
On completion of the workshop. like all other workshops held as part of the planning process. preferably in this case at permanent secretary or director level. and if appropriate planning. It is essential that the views of the users and any losers under the proposed project should be sought and expressed at the workshop. with sensitivity and risk analysis. . Senior representatives of the national finance. Achieving Consensus on the Project Proposal The project dossier or document should preferably be presented in draft form to government and the financing institution. It should also highlight any outstanding issues that need to be resolved before appraisal and define the actions required to do so. The objective of the workshop should be to reach consensus on all aspects of the project proposal. The final version of the project dossier should then be prepared on the basis of the consensus or conclusions reached. • A list of suggested conditionalities for loan effectiveness. The dossier or document should normally incorporate or be supported by the working papers that have been generated at various stages of the planning process. institutions should be present to inform them of the final shape and cost of the proposed investment.Guidelines for Planning Irrigation and Drainage Investment Projects 86 • The financial returns to farmers and economic benefit to the country. taking account of all social and environmental costs. depending on the form that best facilitates subsequent appraisal (see Annex 2 for a typical list of working papers). for discussion at a concluding workshop. These should either be presented separately or attached to the project document as annexes. The event should also be attended by the task manager or project controller from the financing institution. This should. an aide mémoire should be prepared which should summarise the proceedings and note any matters that still need to be clarified or corrected in the project dossier. The aide mémoire should be agreed with the senior representative of government in attendance at the workshop. the LPG(s). and any NGOs who might be involved in implementation (eg for training WUAs). preferably by elected representatives. including senior representatives of the ministry or department(s) responsible for water resources and irrigation. be attended by concerned stakeholders or their representatives.
Recommend any necessary improvements to network or processing of data. eg under a sectoral loan. monthly and annual flows. Note details of recorded floods and compare with regional envelopes. If necessary generate sequences of daily. 1: Note that in a programme approach. Analyse flows and frequency of floods. Confirm design flood(s) and carry out flood routing. Review data and if necessary visit stations to assess data quality. reworking data if necessary. Prepare preliminary estimate of basin water balance and round-figure estimates of area each source will irrigate. Refine estimates of sediment yield. . Chapter 4). Hydrological Aspects of Major Works Identify main water sources. with probability analysis. On-going data collection for future updating of water availability and sediment yield. feasibility activities for subprojects may be deferred until after appraisal (see Part II. collect available data on basin rainfall and flows. Revise basin water balance or hydrological model. Further refinement of 2 if necessary to resolve outstanding issues. eg for measuring annual floods).Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 A. power potential or other use. Sample and test quality for use for irrigation purposes. As 1. Install additional measuring devices if this will usefully add to hydrological knowledge (which it will only in certain circumstances. Prepare indicative basin plan for optimum water use. Estimate sediment yields.APPENDIX 1 . All outstanding issues resolved. Simulate annual water availability over life of project using spreadsheet analysis.
APPENDIX 1 - Activities to be completed and level of detail required at successive stages of the planning process
Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness
Conceptualising/comparing investment options 1
B. As 1, plus geophysical surveys drilling test wells, pump tests, and preparation of simple model of aquifer recharge, storage, transmissivity and yield. Design of wells, specify pumps and drilling methods. Define monitoring system. Further refinement of 2 if necessary to resolve outstanding issues.
Hydrogeological Aspects of Major Groundwater Development
Collect and study available data on groundwater occurrence and use. From desk study identify areas worthy of further exploration. Review well logs and existing yields. Sample and test water quality. Map preliminary assessment of groundwater potential.
All outstanding issues resolved. Establish groundwater monitoring programme.
1: Note that in a programme approach, eg under a sectoral loan, feasibility activities for subprojects may be deferred until after appraisal (see Part II, Chapter 4).
APPENDIX 1 - Activities to be completed and level of detail required at successive stages of the planning process
Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness
Conceptualising/comparing investment options 1
C. As 1 plus orthophoto mapping (preferably, otherwise line mapping) for the command area at 1:10,000 with 1 m contour interval, or better. 1:2,500 scale mapping with 1 m contour interval or better for main canals and major structures. As 2 plus maps of larger scales for selected structures. If necessary, additional survey of infield, to permit designs of at least the first year's work. Manual survey (at least 10% of command area) of a sample of the infield area for designing sample in-field layout and land levelling requirements.
Topography of Sites of Major Structures and Scheme Area
Obtain satellite imagery at 1:100,000 for catchment area and at 1:50,000 of command area for reconnaissance. Mapping of catchment and command areas at 1:50,000 with 10 m contour interval, or better. Uncontrolled, or better controlled, air-photo mosaics of sites of major structures and main canal alignments, at a scale of 1:10,000. Better still, orthophoto or line mapping at this scale with 2 m contour interval.
Further survey and setting out for construction purposes.
1: Note that in a programme approach, eg under a sectoral loan, feasibility activities for subprojects may be deferred until after appraisal (see Part II, Chapter 4).
APPENDIX 1 - Activities to be completed and level of detail required at successive stages of the planning process
Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness
Conceptualising/comparing investment options 1
D. As 1 plus interpretation of new air photography. Identify and quantify soils and land forms. Define crop-specific land utilization types. Soil survey at 1 observation per 25-50 ha. Consider erosion hazard, fertility, toxicity, drainage. More intensive soil survey with observation in representative areas of 1 observation per 10 ha average, to confirm boundaries, and to further investigate any drainage problems.
Land Capability for Irrigation
Review of following data: LANDSAT/SPOT imagery at 1:100,000 or larger; air photography at 1:50,000 or larger; geological and soil maps at 1:250,000 or better; and land use maps at 1:50,000 or better. Review reports and maps of soil survey institutions, universities, consultants, etc. Hence identify principal land systems.
Establish monitoring system for potential waterlogging and salinity build-up.
Interpretation of available air photographs at 1:25,000 or better. Reconnaissance soil survey at observation density of 1 sample per 100-200 ha (depending on magnitude of scheme and mapping scale) plus sampling and testing for physical and chemical properties; 10% of observations consisting of deep pitting to check drainage.
1: Note that in a programme approach, eg under a sectoral loan, feasibility activities for subprojects may be deferred until after appraisal (see Part II, Chapter 4).
Chapter 4). Further confirmatory investigation if required during detailed engineering design. Geotechnical Aspects of Major Structures From a review of available air photography and geological and topo maps. Field classification of geological formations and soil types. structures. Decide on requirements for geotechnical investigations for dams. assess areas suitable for dams. . 1: Note that in a programme approach. Drilling. pitting for dams. other structures and canals. Carry out field visits to selected sites. eg under a sectoral loan. concrete aggregates etc.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 E. other structures and canals. feasibility activities for subprojects may be deferred until after appraisal (see Part II. Confirm availability of borrow material. As 3. and prepare programme for 2. canals.APPENDIX 1 .
Civil and Irrigation Engineering Outline main water sources and irrigable land. Link present or potential irrigation demands with possible water sources. or operational plans for direct labour construction with farmer participation. Hence identify possible schemes for irrigation. Carry out operational/simulation studies to optimise dam/reservoir/ scheme area.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 F.APPENDIX 1 . or flood control. Define areas of swamp or seasonal inundation. Prepare feasibility level preliminary designs for the system. drainage. Refine estimates of project water requirements for the preferred option and likely cropping pattern. 1: Note that in a programme approach. Prepare preliminary estimates of irrigation water requirements for possible typical cropping patterns. specifications and tender documents. Continue with detailed designs. Chapter 4). eg under a sectoral loan. construction drawings. Detailed designs. Prepare outline designs of the options. feasibility activities for subprojects may be deferred until after appraisal (see Part II. to the level of detail that ensures that no significant changes will be necessary later. . Arrange for tendering of works if financing institution has approved. bills of quantities.
Tabulate foreign/local costs and programme of expenditure for engineering works. Refine quantities and costs in the light of further investigations and designs. land development. land acquisition etc.APPENDIX 1 . with schedule of disbursements. feasibility activities for subprojects may be deferred until after appraisal (see Part II. onfarm development and any land acquisition. eg under a sectoral loan. Refine quantities and cost estimates. . 1: Note that in a programme approach. Arrange for farmers' contribution to be made.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 G. Chapter 4). accurate to say 15%. Identify scope for and nature of farmers' contribution to capital costs. Civil and Irrigation Infrastructure Costs Preliminary cost estimates (including O&M) for engineering works.
eg storage and grading sheds. markets etc. O&M. covered markets etc. Agricultural Development and Marketing Review general policies for irrigated crops. needs for extension and other services. Arrange for tendering for supply of plant and equipment. Carry out SEPSS if required and from this prepare recommendations on possible or likely cropping patterns. feasibility activities for subprojects may be deferred until after appraisal (see Part II.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 H. refine estimates of crop water requirements. Preliminary cost estimates (including O&M) for any likely marketing infrastructure. cropping intensity. accurate to say 15%. intensity. with schedule of disbursements. Chapter 4). extension. Prepare tender documents for plant and equipment (including marketing plant and equipment) storage facilities etc. Note development constraints (lack of water. eg under a sectoral loan. Refine cost estimates. Make more detailed agronomic recommendations and on marketing. 1: Note that in a programme approach. Design SEPSS if considered necessary. if financing agency has approved. Preliminary recommendations on strategy for irrigated agricultural development: cropping patterns. . and any land acquisition costs. Refine quantities and costs for agricultural development and marketing in the light of final planning of component. credit and technical support. List local crops. research. storage facilities etc.). finance. storage. Jointly with engineering/hydrology study. Refine recommendations in 2. general assumptions on crop yields.. rainfed crops..APPENDIX 1 . food versus industrial crops. estimates of yields with and without project. seeds. Tabulate foreign/local costs and programme of expenditure for works.
eg under a sectoral loan. From SEPSS. Further refinement if necessary or if additional data become available. cropping patterns. crop and farm models.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 I. eg in extension approaches. feasibility activities for subprojects may be deferred until after appraisal (see Part II. Chapter 4). Assess social constraints to intensified production. Develop proposals for treatment of gender related constraints. refine crop selection. . and other local data collected. on the basis of representative models for the typical crops and cropping patterns. Incremental Agricultural Production Benefits Preliminary estimates of incremental benefits from irrigation.APPENDIX 1 . Estimate incremental benefits per household and at project level. and need for separate treatment of gender related constraints. 1: Note that in a programme approach.
M&E. 1: Note that in a programme approach. Chapter 4). Ensure key researchers or extensionists who will be involved in implementation participate in SEPSS. technical assistance agencies). Initiate monitoring and evaluation.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 J. Prepare tender documents for key items. Make preliminary classification of strengths and weaknesses. Generation. Plan means to link their activities. farmers' organisations. programmes and field deployment to supporting the irrigation project alternatives under consideration. technology testing and extension. extra resources needed for them to operate as defined. private sector. eg under a sectoral loan. NGOs. Fine-tune cost estimates. and to ensure adequate participation of irrigators to ensure client-oriented approach. Complete recruitment and first round of training/PRAs. Define institutional responsibilities for agricultural research. Initiate recruitment of extra staff and/or pre-implementation training for new roles. Define monitoring and evaluation system. Assess the relevance of their present organisation. Review options for improving relevance or impact of their work and possible roles for investment in achieving such improvements. Maintain training and re-training. Testing and Transfer of Agricultural Production Technology Identify institutions currently involved in research or extension related to irrigated agriculture (public.APPENDIX 1 . Organise pre-project seminars or PRA for existing field-level extension and research staff. . and estimate costs. feasibility activities for subprojects may be deferred until after appraisal (see Part II. Define field modus operandi of services.
eg under a sectoral loan. Establish demand for project or subprojects. 1: Note that in a programme approach. Obtain written commitment to provide construction labour and to accept O&M responsibility. Consultation with farmers with regard to scope and layout of scheme. feasibility activities for subprojects may be deferred until after appraisal (see Part II. assist farmers with electoral formalities for WUA committee and drafting constitution. Finalisation of project planning with all stakeholders. Chapter 4). from farmers' representatives to financing institution at concluding workshop. If necessary.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 K. preferably by example (eg demonstrations of previous farmer commitment on other demand-led development such as community contribution to school buildings). and SEPSS. . Assess need for/feasibility/prospects for success of WUA. Consultations with farmers directly or through local authorities/village councils etc. Prepare farmers for making contribution to capital costs.APPENDIX 1 . Participation and Water Users' Associations Involvement of stakeholders in evolution of development concepts and comparison of investment options through interviews and participative approaches/workshops.
carry out EIA. eg under a sectoral loan. Establish environmental monitoring system. Environmental Impact Initial environmental evaluation (IEE) using ICID checklist to assess the need for environmental impact assessment (EIA). Specify indicators. Refine actions plans in the light of further information collected or received. . 1: Note that in a programme approach. Chapter 4). Enact any necessary legislation to enable plans to be implemented. feasibility activities for subprojects may be deferred until after appraisal (see Part II. Modify project planning necessary to accommodate recommendations.APPENDIX 1 . and prepare any necessary environmental action plans (EAPs) and resettlement action plans (RAPs). organisation and responsibilities for environmental monitoring.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 L. including if required land acquisition assessment (LAA). Otherwise prepare mitigation plan. If recommended by the IEE.
Implement training and start-up seminars or workshops. Carry out ICA covering assessment of concerned departments/private sector organisations. including TA and training needs. Prepare proposals for institutional development/strengthenin g. allowing for proposed strengthening or adjustments. Finalise arrangements or any organisation initiatives/institutional reforms. Plan any preimplementation training or seminars. Cost Recovery. capacity and funding).APPENDIX 1 . Operation and Maintenance Initial institutional evaluation (IIE). environmental protection and. Chapter 4). establish project entity if necessary. Appoint key project staff. and contracting out to private sector. morale. 1: Note that in a programme approach. Arrange bidding and contracts with NGOs and consultants if required. . Relate to possible project(s) being identified. Preliminary assessment of institutional strengths and weaknesses (ability. internal culture and performance. including formation of WUAs if appropriate. Specify arrangements/pricing for water charges and collection. Set up accounts and procurement arrangements. social welfare. Institutions. Enact any necessary legislation to enable changes to be implemented. Describe institutional framework for irrigation. Decide on needs for institutional capacity assessment (ICA). including legal establishment of WUAs. Organisation and Management. Match project design to capacity to implement. Recommendations for project organisation and management. their staffing and capacity. feasibility activities for subprojects may be deferred until after appraisal (see Part II.Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 M. Implement any organisational changes necessary. Specify arrangements for O&M. eg under a sectoral loan. if appropriate.
Economic Analysis Ranking of alternatives according to simple financial cost/benefit analyses using data from rapid assessments. feasibility activities for subprojects may be deferred until after appraisal (see Part II. Risk and sensitivity analysis. Fiscal implications and cost recovery. 1: Note that in a programme approach.APPENDIX 1 . Finalise financial requirements. eg under a sectoral loan. Effect on balance of payments and government budget. loan details and disbursement schedule. Chapter 4). Impact on income distribution and poverty alleviation. .Activities to be completed and level of detail required at successive stages of the planning process Project process/subject Planning the preferred option1 2 3 4 Appraisal Loan effectiveness Conceptualising/comparing investment options 1 N. Estimation of economic and financial returns.
Users must be selective in coverage. its contribution to GDP. other key geographic features. balance of payments. employment. Country (Region) economy and trends: main features of economy. Methodology employed: particularly the methodology employed to achieve a consensus of views with government (workshops/participatory planning/joint review). Country (Region): location. agriculture and irrigation in the economy. food supply and self-sufficiency. and details of the review/strategy formulation team. GDP per caput. and export earnings. GDP. Currency Equivalents Acronyms SUMMARY (3 to 5 pages) INTRODUCTION (1 TO 2 PAGES) Objectives of strategy formulation: including whether intended to update an existing subsector review. or to support an existing or proposed Agricultural Sector Review or Water Resources Management Strategy/Strategy Study. size. Use of databases. inflation. balance of trade and other macro-economic issues. . Intended readership NATIONAL BACKGROUND (2 TO 3 PAGES) (OR REGIONAL BACKGROUND IF LIMITS DO NOT COINCIDE WITH NATIONAL BOUNDARIES). Origin and authorship: origin of request and reasons for review and strategy formulation. public sector finances. population and its rate of growth.Guidelines for Planning Irrigation and Drainage Investment Projects 101 ANNEX 1: Checklist for contents of an irrigation subsector review and strategy paper Note: Not everything listed below will be relevant in a given case.
THE RESOURCE BASE (2 TO 5 PAGES) Climate: highlight rainfall amount and variability versus crop requirements. the limitations (eg soils and topography) for irrigation suitability. concentrating on crops that might profitably be irrigated. traditional water control systems etc. export growth versus import substitution. crops grown. weaknesses and areas needing attention. responsibilities for/adequacy of O&M. THE IRRIGATION SUBSECTOR: PRESENT SITUATION (10 TO 15 PAGES) This key chapter should combine a minimum of essential description with a critical assessment of the performance and relevance of the subsector. other commodities for local consumption and export products. private large-scale/small-scale. taking account of demographic trends or world markets as appropriate. on this basis categorise agro-climatic zones for which irrigation strategies should be evolved (or irrigation declared unnecessary). eg fiscal retrenchment. flood regimes. Land Resources: total arable land resources of the country (region). history of development and areas of each category developed/cropped.). Water Resources: summarise. Consider food staples. privatisation. and levels of cost recovery on public schemes. quality. etc. as appropriate. limits on external borrowing.). location relative to potentially irrigable land. any seasonal temperature limitations to plant growth. taking account of any limitations imposed by any international water rights issues. and hazards (such as hail). production systems.Guidelines for Planning Irrigation and Drainage Investment Projects 102 Demand and supply of agricultural products: estimates of future demand or markets for agricultural products versus expected supply. key features/objectives/targets of national plans or policy commitments. water use efficiency. drainage only etc. availability for agriculture or competition with other sectors. productivity. available data on surface and groundwater sources. significant salinity or drainage problems. and whether they offer potential for reclamation and development. present condition. . market liberalisation. and types (eg surface/sprinkler/drip. whether man-made or natural. Existing Irrigation and Drainage: the main categories (eg public largescale/small-scale. farmers experiences with irrigation. alerting the reader to strengths. Government’s overall development aims and priorities: main relevant thrusts of economic policy or recent adjustments.
the types of production or crops for which irrigation is technically justified or necessary. track record) and their main strengths and weaknesses. anticipated social and environmental impacts. Socio-Economics: current socio-economic situation on existing schemes. limitations to development imposed by physical factors such as porous soils or pumping lifts. flagging databases/findings taken into account by the team in reaching their conclusions. budgets. role of the private and cooperative sector . and the fiscal sustainability of present arrangements or levels of application or regulations. legal basis on which institutional structures for irrigation are founded. for growth in certain seasons of the year. Subsectoral finances: the main sources of finance for public and private irrigation. irrigation equipment suppliers. livestock. . fisheries. agricultural production. and typical crop budgets/farm models. on-going or recent studies (refer to main relevant work. Irrigation costs and benefits: typical capital and O&M costs for the various categories and types of irrigation. including land tenure and water rights aspects. social and environmental impacts of existing irrigation to date and future implications. or to take commercial advantage of a climate which is comparatively favourable (eg for seed production or expansion of high-value horticulture in places with good market connections). internal culture. individual entrepreneurs. beneficiary participation and performance in public irrigation planning. staffing. Current developments: irrigation developments under construction. etc.the main actors (NGOs. or services to irrigators. companies. The legal framework: summary of relevant legislation affecting land tenure. other external technical assistance support and the degree of government dependency on this. development. or markets. consulting firms and contractors) involved in planning and construction. water users’ associations. mixing or conflicts (if any) between irrigated agriculture and rainfed cropping. supply of goods. cost recovery and taxation regimes. scheme O&M. water abstraction and use. proposed. Institutions: describe and assess key government institutions in the subsector (responsibilities. or about to be constructed. for each agroecological zone defined above. and information regarding disadvantaged groups. either to obtain any significant output. and purchase/processing/marketing of output. land holding sizes. for security/supplementary/survival purposes.Guidelines for Planning Irrigation and Drainage Investment Projects 103 interactions. cross-reference to full lists of references and bibliography. which should be annexed). operation or maintenance. adequacy of existing provisions and need for change..
indicating underlying assumptions in deriving overall availability of water.Guidelines for Planning Irrigation and Drainage Investment Projects 104 Potential for further development: quote available statistics. conjunctive use of surface and groundwater. place irrigation in the context of overall water resources management. again compared with rainfed crops. with sensitivity analysis. Irrigation in Africa South of the Sahara. It may be appropriate to carry out a DRC analysis (see Part II. Economic analysis of crop production: similar figures but with all subsidies removed. Opportunities: from the previous chapters identify the potential for new irrigation or for improvements to existing irrigation. compared with review team’s estimates. Investment ceilings for future developments: for each of the main crops/typical cropping patterns. Economic analysis of irrigation investments: cost-benefit analysis in economic terms . FAO. see Annex 2 in Investment Centre Technical Paper 5. water and labour) compared with rainfed crops. using border prices and any necessary shadow pricing of currency. using typical cropping patterns. the maximum justifiable investment cost per hectare to yield an assumed ERR (likely minimum 12 percent)1. allocation for other sectors and re-use (cascades of tanks. making clear whether they refer only to technical potential or whether some economic criteria (especially limits to costs of development or operation) have been applied. including any in the cost of water. Rome (1986) . assess the value of existing development as a model for future development. for which results may be attached in an annex. agricultural use of urban/industrial waste water). flag any key 1: For an example. OPPORTUNITIES AND CONSTRAINTS TO IRRIGATION DEVELOPMENT (1 TO 2 PAGES) In this chapter the physical opportunities for irrigation and drainage development should be reviewed in comparison with market opportunities or constraints. to identify the implications for the possible scale. FINANCIAL AND ECONOMIC VIABILITY OF IRRIGATION (5 TO 10 PAGES) Financial analysis of crop production: for each of the main crops under the various categories of irrigation. Chapter 2). for the major representative categories and types of irrigation system. type and pace of future development. the returns to the most constraining production factors (eg land.
inadequate cost recovery. and hence its broad development goals. or is not. dates. summarise the main points that need to be taken into account in evolving any proposals for subsectoral development. distinguishing cases where irrigated production would be appropriate. or commitment by farmers on public irrigation. . Constraints to future development: from lessons learned. distilled from previous chapters. • future roles of public and private sectors in irrigation/drainage development. from previous policy documents/statements. These might include limitations/problems of existing development. lack of institutional capacity for public or private irrigation. local comparative advantage. lack of adequate legislation. 1: A workshop is often held for the purpose of reaching a consensus on the options before finalisation of the strategy paper (see Part II. • government’s strategy for minimising the risk/mitigating adverse social and environmental impacts (legislation. etc. GOVERNMENT PRIORITIES AND PLANS (1 TO 3 PAGES) Main government objectives for irrigation/drainage development. • the main commodities (food/non-food) and markets (selfsufficiency/exports) which are the objectives of government irrigation development priorities or plans. etc. targets. giving figures. • the irrigation/drainage types or categories of producer to be favoured or the overall social/political objectives which irrigation/drainage is intended to serve. where possible.). as modified (if at all) in a workshop1 attended by the stakeholders. • expected contribution of the sub-sector to social objectives or employment creation. land tenure/water rights issues (including any international issues) affecting public or private irrigation/drainage. • specific facets of government policy such as: • the priority given to agricultural use of available water resources.Guidelines for Planning Irrigation and Drainage Investment Projects 105 products for which there is. O&M. adverse social and environmental impacts. quantify future supply gaps or market dimensions for key commodities if possible. Contents may cover: • a brief recapitulation from Chapter 2 of the main macro-economic constraints or opportunities on which the government’s development policy is founded. Chapter 2). institutional reform. • the government’s technical strategy for development (rehabilitate/exploit sunk costs/new construction. strengthening/forming environmental protection agency). • the promotion of participatory planning and development.
Most of the rest of this chapter will be so specific to the country/area concerned that no detailed checklist can be offered. in order to meet the stated priority objectives. However. • decentralisation of institutional responsibility. “POSSIBLE” OR “SOME ELEMENTS OF” ETC. extent/sources of external funding envisaged). but now refined or modified in the light of the review/strategy formulation (in which government has fully participated through the medium of workshops and other activities). credit or subsidies for irrigation. Depending on the setting. technology/production systems and the types of irrigator that should be favoured. a rationale is needed to spell out the main national needs. distinguishing if appropriate between short. the most important chapter of the Paper. a rationale needs to be derived to justify the irrigation scale.. • future intentions on fiscal measures. it is useful to set out the main sub-sectoral issues to which the strategy being proposed is intended to respond. • subsectoral projects. when and by whom?” and “What should government do about it?” Irrigation/drainage for what? Drawing on earlier background. cost recovery. STRATEGY FOR IRRIGATION DEVELOPMENT (5 TO 10 PAGES) (PREFACE WITH “PROPOSED”. three general questions are likely to need addressing in almost every case: “Irrigation/drainage development for what?”. “How. • regulation of water rights or reform of tenure arrangements for irrigated land.Guidelines for Planning Irrigation and Drainage Investment Projects 106 • legal or institutional changes affecting the subsector to which the government is committed. How. Issues will often echo those first raised at the Preliminary Brief stage (see Annex 3). irrigators’ contribution. DEPENDING ON STATUS OF ELABORATION OF WORK). political or environmental criteria will need to be considered. • anticipated sources of capital and recurrent funding for the subsector (government contribution. . • environmental protection. opportunities or priorities to which irrigation or drainage development should respond. economic. and the pace of development that would fit with existing development capacity. when and by whom? Following on from the above. social. programmes or plans to which the government is committed. To set the scene for this. medium and longer-term needs or objectives.
The models may also be used to compare economic returns per unit volume of water . arguments can be supported with the simple production models developed in Chapter 5 to demonstrate likely economic efficiency. once repaired.for instance on food supply and demand. under-used or neglected infrastructure. First.needs to be a logical response to the forms of development and future organisation of irrigation advocated under the two previous headings. operation and management should also be set out. The principles that should orient future institutional and social arrangements for irrigation planning. local or export markets.especially those relating to institutional capacity for development. availability of or competition for natural resources. A strategy will need to be included to prevent rehabilitated systems. road access.Guidelines for Planning Irrigation and Drainage Investment Projects 107 These two sections should be closely linked and will tend to integrate a wide variety of previous information . to guide national decision-makers. or per labour day.usually the limiting resource . indicating whether a participatory approach is appropriate. construction of civil works and supporting public infrastructure: what irrigation/drainage works should the government design and finance under the various categories of development suggested for priority. from degenerating again. labour demand or supply. the comparative advantage of various forms of irrigation (both nationally and versus rainfed opportunities). In many countries a balance may need to be struck between new construction and the rehabilitation of existing facilities: illustrative summary tables of relative costs and benefits can also be given for each of these. comparative advantage or financial attractiveness of growing alternative commodities by different means. The government’s future intentions. or under alternative systems or different scales of irrigation. adverse social and environmental impacts. farmer motivation.The government’s role? . They should take full account of the lessons of experience or precedent regarding the ease or difficulty of exploiting particular opportunities. power supplies. If a public/private partnership is envisaged.per hectare developed. If strategic choices centre on production under rainfed versus irrigated conditions. to what extent is it appropriate to rely on . It may help to start by clarifying some principles. The third question . or of overcoming key sub-sectoral constraints . agro-processing. commitments or priorities as well as its real capacity to influence or undertake irrigation development must also be taken into account. social needs. construction. implement operate and maintain is limited. and where would the irrigators take over (“public” versus “private” is seldom an all-or-nothing destination. what prior commitments and financial contribution should be required of each partner before development starts? Should future development strategy include improvements to power supplies or access roads? If government’s capacity to plan. and so on. many gradations exist depending on how close government works come to the farmer’s plot).
privatisation of the supply of production inputs and materials. or to contract out to the private sector for these services? Second. system operation and maintenance: how should costs and responsibilities be divided in future between the various public and private interests involved? If changes are proposed . and arrangements for agro-processing and marketing.. recovering urban wastewater for agricultural use. Fifth. institutional.Guidelines for Planning Irrigation and Drainage Investment Projects 108 external technical assistance to strengthen its capacity. as elucidated at the concluding workshop . upgrading the quality of scheme O&M.”) and partly a matter of foreshadowing the issues which should be . such as inter-sectoral and longer-term allocations of water. organisational and fiscal issues of the sub-sector. water users’ associations or individual irrigators . contracted agencies. machinery services. associations or individual producers. or encouraging more local manufacture of irrigation equipment. what levels of capital cost recovery should be aimed for and how should recovery be made? Third. production support and marketing: what should be done by the private sector. Whether or not to go into details on specific government services in the strategy chapter is an open point.. suggestions here should be founded on earlier references to the main legal. entrepreneurs.... research or training. credit. sustainability (of aquifers and land use). strategic proposals are in line with government’s thinking. Treatment is likely to be partly reassuring (“. promoting and “nursing” WUAs. collecting more water charges..for instance for greater participation of communities. The final section of the strategy chapter will often compare the strategic suggestions just given to the present policies and plans of the government.. protecting or monitoring environmental impacts.how could this be made attractive to them and how should transfer from public authorities be organised? Assuming that the full cost of O&M is recovered. A fourth general principle to clarify is the broader guardianship of the public interest: this normally devolves to government but concerns subsectoral matters which are often inadequately attended to. and riparian rights.. as opposed to government agencies? Topics to cover may include extension and research.. it may seem appropriate then to flag the main topics to which government should give attention . bearing in mind past success/failure of this kind of assistance.eg improving extension. Having clarified the principles which it is suggested should guide future strategy. sorting out the credit system. there may be some spill-over into macro-economic questions which the government would need to attend to if subsectoral developments of the sorts indicated are to become realities.
for example to re-cast research and extension on irrigation to respond to an oncoming need to generate more production from a now fully-used water supply. it may have been concluded that sub-sectoral progress is impeded mainly by macro-economic or other trans-sectoral issues. fiscal reforms. DEVELOPMENT PROPOSALS (1 TO 4 PAGES) Here the team should present its ideas on specific actions which the government could take in support of the strategy which has been proposed.. • It may be possible to make proposals for practical interventions which transcend individual locations and span the sub-sector. market opportunities. etc. however. institutional performance. . farmer attitudes and motivation. or perhaps suggest an investment programme of .. In this case the team’s proposals may focus on the government creating the pre-conditions in which the development of the subsector could be expected to accelerate largely on the basis of private initiatives. content will depend greatly on circumstances. or perhaps on budgetary allocations which better reflect an important current contribution of irrigation to the national economy and development goals. the present condition of existing works. extent of waterlogging. Again... institutional changes or enacting new laws. • It may be possible to pinpoint specific.. • If the team has found so few reliable data that it has been able only to make provisional strategy suggestions based on broad estimates or working hypotheses. the profitability of different forms of irrigation. project ideas which can be taken up forthwith because they match the proposed strategy. imply consistent application of laws on water abstraction and strengthening of present environmental protection/enforcement capacity .. groundwater reserves.for instance progressive rehabilitation of works serving the favoured types of producer in areas of comparative advantage. then proposals may give priority to the studies which are needed before further progress can be made . the easing of which may often have few cost implications of any sort for the government. or a national campaign for improved operation and maintenance of existing facilities based perhaps on higher cost recovery. relationships between irrigation and rainfed farming.Guidelines for Planning Irrigation and Drainage Investment Projects 109 picked up at the end of the report (“..would. • Finally. etc..”). credit overdues. existing.. Immediate needs may be for technical assistance funds rather than investment finance.for instance of surface water resources. for instance through making changes in macroeconomic or pricing policy.
Overall.Guidelines for Planning Irrigation and Drainage Investment Projects 110 Frequently there will be proposals under several of these general headings. external technical assistance. The purpose of this chapter should be to show the government and potential financing agencies that the strategic proposals can lead. scale. and the previous chapter will probably contain a miscellany of recommendations or ideas ranging from specific physical interventions. likely needs for internal and external financing. however. the paths which it sets out should help the government to do two things: • improve on existing subsectoral performance in the short term.eg technical efficiency versus equity. location and timing. may be best left until later (Chapter 11). needs and possible sources should be suggested and spelled out. within a reasonable time. others can be locally funded and for others the cost to the government may be political rather than monetary. Where possible and appropriate. and possible sources of these external ingredients. or small/quick versus larger/slower increases in output of certain commodities. Alternative scales or development scenarios can be discussed. Insofar as either path requires external assistance. to action and tangible subsectoral benefits. others will be slow. . through strengthened services. according to the strategy proposed. and • prepare for further irrigation and drainage development over the longer term. particularly if they can be used to illustrate different trade-offs between objectives . To this end the chapter should establish sequences or priorities among the various proposals given earlier. proposals should be amplified to indicate in outline their possible components. Some of these may require external finance or assistance. followed by costs. Some will be quick. Issues. to studies or institutional and policy changes. IMMEDIATE ACTIONS AND FOLLOW-UP (1 TO 3 PAGES) A strategy formulation team is likely to have raised local expectations. or a sectoral approach may be suggested with a view to identifying a project to finance a time-slice of government’s irrigation investment programme and to concentrate on capacity-building.
Typical Crop Budgets for Irrigated Crops 5. if the development strategy or options proposed by the concluding workshop are to be implemented (it may be appropriate to give preferred alternatives if the concluding workshop has not resulted in consensus). Hydrological Zones and Rainfall Isohyets 3. disputed riparian rights. etc. • list the main externalities or risks to which the development strategy or different options could be subject (macro-economic factors. The team should: • list the major subsectoral issues requiring decisions either by the government or potential financing agencies. spreadsheet or data base packages) flow charts and logic diagrams can be prepared and presented to help the reader. FLOW CHARTS AND LOGIC DIAGRAMS Using simple graphics software (such as that included in word processing. Financial and Economic Viability of Irrigation BIBLIOGRAPHY . Agro-ecological Zones and Land Use 2.Guidelines for Planning Irrigation and Drainage Investment Projects 111 ISSUES AND RISKS (1 TO 2 PAGES) The final chapter should summarise the issues and risks associated with the proposed strategy. MAPS Maps included might be: 1.). Groundwater Potential 4. Marketing and Prices of Agricultural Products 4. Location of Existing and Proposed/Possible Irrigation Development ANNEXES Annexes might include: 1. floods. it should always be indicated by whom. world market trends. Basis of Estimates of Typical Irrigation Costs 3. Existing Irrigation Database 2. how and by when decisions need to be taken.
Any inconsistencies between the various annexes or working papers should therefore simply be acknowledged and explained in the main text. repetition of earlier report writing should be avoided.Guidelines for Planning Irrigation and Drainage Investment Projects 112 ANNEX 2: Outline of a typical project document or dossier This annex. even though every effort should have been made to achieve this. FAO. may have been performed independently of other work. If appropriate. selected country statistics may also be given. Depending on its complexity. the main text of the project document should be no more than 60 pages long and preferably less than 50. The inside of the front cover should usually contain details of currency equivalents. plus annexes that may be bound into the document or left as separate working papers. the various annexes may not necessarily be fully consistent with each other. or international consulting firms. including university groups. nor with the main text. in the interests of streamlining the planning and appraisal process. a list of acronyms and abbreviations. Investment Centre missions may also have been involved. and any other local weights or measures that need explanation. Note that the layout described is adapted to project-specific investments. local consultants or consulting firms. anticipated environmental impact and the implementation arrangements for the proposed investment. but alternative presentations are suggested where necessary to allow for the case of subsectoral or programme investments. The annexes may have been prepared by local planning groups (LPGs). no attempt should be made to rewrite them unless this is essential for clarity or is requested by the financing institution. . in view of the trend towards these. 1: Investment Centre Technical Paper 7: Guidelines for the Design of Agricultural Investment Projects. However. read in conjunction with Investment Centre Technical Paper 7 . Rome (1993). seeks to cover the great majority of the topics likely to be dealt with in planning any irrigation or drainage investment. It is intended to be used as a checklist. 1 The main text of a final project document or dossier may have up to eleven chapters. Some of the investigations. As a result. to be consulted as necessary by planning teams in the course of documenting the proposal and to give direction and purpose to the overall planning process described in Part II. such as engineering feasibility studies carried out by consulting companies.
• estimated costs and disbursement period. . BACKGROUND (3-6 PAGES) The background chapter should refer the reader to other published reports (eg the irrigation subsector review and strategy paper . or from previous examination of the available options. and the implications for existing institutions. a well thought out and presented background chapter is essential to establish the framework for the project rationale and the planning considerations described in later chapters. • the people who will use the project and the expected impact on their incomes. • the proposed organisation for implementation and subsequent O&M.see Annex 1) as far as possible. It should not exceed four pages or ten percent of the length of the main report. INTRODUCTION (1 PAGE) This chapter is administrative and should state the purpose of the report and to whom it is addressed. • the reasons for its selection. The summary can usually only be written after the main report has been completed. ie whether in a national development plan. from subsectoral strategy formulation. • the arrangements for fiscal sustainability. and its relation to government policies and plans. whichever is the shorter. • the implementation plan. size and main components. However. It should indicate how. individuals and/or FAO Investment Centre missions) the project has been prepared. • the main issues to be resolved before appraisal. with one paragraph for each chapter of the main text. • any adverse social and environmental impacts. • the expected economic results.Guidelines for Planning Irrigation and Drainage Investment Projects 113 SUMMARY AND CONCLUSIONS (2-4 PAGES) The main report should be preceded by a summary which briefly describes: • the proposed project. its location. It should also state the origin of the project. The summary should normally cover topics in the order in which they are treated in the main text of the document. when and by whom (eg LPGs. consulting firms.
input availability and utilization. farm size and land tenure. as well as that for the basin in which it will be situated. Present and future estimates of supply and demand for specific commodities and the country’s comparative advantage for their production should also be briefly mentioned. area utilised. that plan should be explained. macroeconomic distortions and other features of economic development that have a bearing on the project. for example on the scale of irrigation development. C. public investment programme.Guidelines for Planning Irrigation and Drainage Investment Projects 114 It usually includes the following: A. organisation and management. including brief references to main forms of land use. past and present performance in terms of command area developed. assuming one has been written. The Agricultural Sector The main characteristics of the sector should be summarised. From water resources investigations and water resources management strategies already defined. cropping intensities and patterns. national dependence on particular imports and exports. per caput income. broadly following the content of the irrigation subsector strategy paper. exchange rate adjustments. Specific treatment of market prospects is desirable where these might have an important bearing on project planning. indebtedness. its historical development. If the project is a part of an overall river basin plan. adequacy of revenue to meet recurrent funding requirements. and average yields achieved. and constraints to overall development. B. balance of payment considerations. or those in the pipeline. . The Irrigation Subsector This section should be included in the case of project-specific investments only: for subsectoral investments the irrigation subsector should be accorded a chapter in its own right. The scope for further irrigation development should then be described. It should briefly describe the location. inflation. otherwise on other available reports and data. water use for irrigation should be placed in the context of the country’s overall water availability and usage. Other on-going irrigation developments. production. extent and nature of existing irrigation and drainage. dominant farming systems. In any case it should draw heavily on the strategy paper. taking account of competing demands. should also be noted. The Economy This should describe the contribution of agriculture and irrigated agriculture to GDP. Recent changes and trends should be highlighted.
Guidelines for Planning Irrigation and Drainage Investment Projects
The social and environmental impacts of previous developments, including resettlement, health, erosion and sedimentation, waterlogging, salinisation, pollution or depletion of surface or groundwater supplies, and measures taken to mitigate them should also be briefly referred to. The lessons learned should be highlighted. Similarly, any other problems which have a direct bearing on the project should also be highlighted, such as cost recovery and O&M or water rights agreements for international rivers.
D. Income Distribution and Poverty
These topics should be given special mention when the project is intended to benefit a particular target group of the rural poor, and should discuss related indicators (eg access to land, water or services, nutrition, health etc.), and the factors contributing to differentiation that might have affected the decision to select the particular project or region.
E. Government Subsectoral Policies and Plans
Again drawing on the subsector review and strategy paper, government priorities and plans should be reviewed in terms of what government sees as the main national aims and benefits of irrigation - whether these be food self-sufficiency, export earnings, employment creation, income distribution, poverty alleviation or some other. Subsectoral objectives for food and fibre supply, exports, social equity, targets for rural income, nutritional goals and so on may be mentioned. In particular, government policy regarding water pricing and cost recovery, in what form (eg direct water charges, betterment levies, land taxes, agricultural product taxes and price controls) and how effectively this is implemented, should be reviewed, as should the appropriateness of environmental policy.
F. The Financing Institution’s Previous Operations and Experience
This should summarise the financing institution’s previous lending operations in the country, with particular regard to irrigation and drainage investments and the lessons learned. It should give details of the numbers and amounts of previous loans to the subsector, their completion dates and achievements in terms of new or rehabilitated hectares irrigated and numbers of users. It should also describe any problems or difficulties encountered, such as local funding constraints, lengthy procurement procedures, poor performance of contractors, poor planning, poor O&M and so on. The lessons of experience that need to be taken account of in planning future investments should be listed.
Guidelines for Planning Irrigation and Drainage Investment Projects
THE PROJECT AREA (3 TO 6 PAGES)
This chapter will only be required for project-specific investment in new irrigation or drainage. It should be replaced with a detailed review of the subsector in the case of subsectoral investments, or a suggested alternative Chapter 3 for project-specific investment in rehabilitation (see Chapter 3(a) below). Together with its supporting annexes and maps, this chapter should describe the features of the project area that have implications for the planning of the proposed investment. It should evaluate the development opportunities and potential as well as the limitations, focusing throughout on the investment which is being proposed. It is likely to contain the sections described below.
A. Location and Natural Resources
This section should summarise the location of the project area and its land and water resources, highlighting any physical constraints that would have to be overcome (eg soil erosion and reservoir/canal sedimentation, poor drainage). The reliability of data (eg scale of soil surveys, length of rainfall or streamflow records) should be assessed and the need for any further data collection (eg for additional surveys, tests or hydrological observations) before construction should be mentioned. Detailed technical data should be consigned to annexes. Topics to be covered should include the following: Location. The location of the project in relation to important features (the capital, provincial/state capital, administrative boundaries, major rivers, and transport connections to main markets). The project area might be a province/state, watershed, the command area of a dam, or a combination of these. The relevant features should be shown on maps. Geology, Soils and Land Capability for Irrigation. Land in the project area should be described with reference to topographic, geological, soil or land classification surveys and maps. Limiting factors should be highlighted. The degree of detail required in land evaluation surveys will vary between projects depending on the characteristics (soil variability, salinity problems, etc.) of the project lands: guidelines are available in the FAO Guidelines: Land Evaluation for Irrigated Agriculture1 (see also Appendix 1 to the main text of these Guidelines). The use of remote sensing methods and geographic information systems to evaluate the
1: FAO, Rome (1985). FAO Rome (1979).
See also FAO Soils Bulletin 42: Soil Survey Investigations for Irrigation,
Guidelines for Planning Irrigation and Drainage Investment Projects
resource base, monitor trends (for example in the irrigated/cropped area over a number of years) and to produce maps can also be considered1 . Climate. The purpose here is not to describe the climate in detail but to demonstrate its influence on and importance to the project concept. It should deal with the main climatic features2 affecting irrigation requirements and system design: ie rainfall (monthly, annual and its probability) temperature, sunshine hours, humidity and wind, as well as reference evapotranspiration. Data should be summarised in tables, with detailed analysis consigned to an annex. This section should summarise the agronomic justification for irrigated, as opposed to rainfed, cropping. Any serious climatic hazards (eg frosts, hail, typhoons) should be noted. Water resources. Surface and underground water resources should be described, with reference to hydrological data, geophysical studies and simulation models. Reliable long term hydrological records normally will be required if the project involves surface water diversion or storage, and these should annexed. Where hydrological records are inadequate, it may be possible to carry out a correlation of rainfall with run-off to extend or in-fill the record, by employing proprietary hydrological models. In justifying minor works a synthesis of rainfall, catchment area and assumed run-off coefficients may be acceptable. Evidence on the nature, recharge and sustainable yield of aquifers will be necessary if groundwater development is envisaged. Water quality should be examined and any aspects that could limit its use for irrigation should be highlighted. Water resources should be dealt with on a region or basin-wide basis, to demonstrate the sectoral context of the existing scheme. The present utilisation and future demand for surface and underground water, and the prospects for other developments within the same catchment that could affect water availability for the project, should also be discussed.
B. The Economy and People
The Local Economy. What can be achieved by a project is strongly influenced by the immediate local environment in which it is set. A brief overview of the economy of the project area should be presented, focusing on the importance of agriculture relative to other activities. The emphasis should be on those aspects that would influence the planning of the project: for example urban population and income growth expectations,
1: See FAO Remote Sensing Centre, Remote Sensing and its Application to Investment Project Identification and Preparation: A Study With Special Reference to the FAO Investment Centre, FAO Rome (1993). Modern computer graphics packages, such as CorelDraw, used in conjunction with flatbed or even hand scanners can be most useful. 2: Long term data for many climate stations throughout the world are available in FAO's computerised CLIMWAT database (FAO Irrigation and Drainage Paper 49, 1993), but these can be updated with the most recent data if necessary.
targeting usually receives special importance and a separate chapter on the target group justifying their selection will be necessary. Special mention should be made of any cultural or political factors which could impede the acceptability of the project proposals. labour and capital. particularly gender relations as they influence disaggregation of labour. 1: For methods of Rapid Rural Appraisal see FAO Investment Centre Technical Paper No 9.Guidelines for Planning Irrigation and Drainage Investment Projects 118 their impact on demand for basic foods or horticultural crops. The relative power of different groups and the extent of influence on individual behaviour and resource management exercised by traditional leaders should be examined. Special emphasis should be given to analysing income and wealth distribution and to explaining the causes of differentiation1. Any conflicting or competing demands for labour should also be identified. their types of settlement. The report should provide information on the number of people in the project area. distinguishing between the roles of the household (and members within it). the extended family.alternative sources of income from off-farm employment. and the responsibilities of husband and wife as family providers. control of crops and income from their sale. or the emergence of competing demands for water for urban and industrial uses that could reduce availability for irrigation. for example families in areas to be flooded by the construction of a dam. Particular attention should be given to identifying any people whose way of life could be disturbed by the proposed project. Sociological Analysis in Agricultural Investment Project Design. FAO Rome (1992). ethnic origin and their occupations. on-farm production. . The description of the socio-economic situation should give special attention to those aspects that could affect the rate at which the target population for the project will accept changes. Intra-household dynamics should be discussed in detail. The people of the project area should be described and their expected reaction to the project should be assessed. time available for crop and livestock production and other activities . petty trading and remittances. The household economy . particularly those who could be displaced.should be described. access and control over land. For IFAD-funded projects aimed deliberately at reducing poverty. different ethnic groups and the community as a whole. An explanation should be given of the way in which resources are at present managed in the project area. the effects of growth in the industrial sector on the demand for labour and the extent to which this affects labour availability and wage rates in rural areas. The People.
pollution. irrigation system O&M). such as population growth. land tenure arrangements. any experience of group activities within the area (eg for marketing and input supply. . or between irrigators and urban users. as an indication of potential yields and production under the project. farming systems and practices. land tenure and the availability of labour during the various seasons of the year. or pricing and subsidy policies. climatic deterioration. Areas affected should if possible be quantified. and conclusions drawn on their implications for project planning. as well as the extent. Competition for natural resources. The existence of irrigated experimental stations and demonstration centres in the area should be mentioned. and their programmes and results summarised. yields and use of inputs. This should describe present land use. their findings on people’s aspirations. Existing Agriculture. Of particular importance is the identification of the underlying causes of any degradation. especially the extent of farmer interest in the project. should be noted and the effectiveness of any existing regulatory measures discussed. performance and state of maintenance of any existing irrigation schemes. C. Land Use and Land Tenure Land Use and Farming Systems. crop varieties. This should focus on the sustainability of land use in the project area. The full findings of the studies may be presented in an annex. erosion and sedimentation. Sustainability of Land Use. should be rigorously analysed.Guidelines for Planning Irrigation and Drainage Investment Projects 119 Factors that might affect the community’s response to the project or the strategy to be adopted should also be reviewed. should be summarised. such as waterlogging and salinity problems in irrigated areas. Any spontaneous development of irrigation or other local initiatives that indicate the potential for farmers’ commitment to a possible new irrigation development should be assessed. The performance of farmers in development schemes similar to those proposed should be described. excessive ground or surface water abstraction. and so on. groundwater depletion. if this has been carried out as part of the planning process. for instance between irrigators and pastoralists. current farming practices. the economic and social cost assessed (if this is feasible) and trends identified. It should point to any particular areas of environmental concern. the construction of new roads. In particular. farm size. These might include nutritional standards and food security. Much of the above information could come from a SEPSS. The socio-economic studies that may have been conducted in the project area. methods. that might have a bearing on the potential for future cooperation in scheme organisation and management and O&M.
and the lessons learned. taxes on products. research and credit services. Any other initiatives towards communities’ management of their own affairs and resources should also be mentioned. particularly from the viewpoint of their relevance to the supply of farm inputs and the marketing of output. should be summarised. The situation should be evaluated in terms of development opportunities and obstacles (eg would land titling. increasing fragmentation. etc. . The size and distribution of properties and farms. etc.Guidelines for Planning Irrigation and Drainage Investment Projects 120 Land Tenure. Successes and failures. Special attention should be given to evaluating farmers’ organisations. Administration. degrees of fragmentation. Marketing and Processing. to the extent that these are relevant to the project. consolidation. and their impact on the accessibility of the project area should be examined. Infrastructure. capacity and current utilisation of agro-industries. The extent and state of communications infrastructure (roads. Support Services and Infrastructure Input Supply. type of tenure. Rural Institutions. Any particular impact of government agricultural policies (price supports. as well as of the presence. as perceived by farmers. Attention should be given to the arrangements and their effectiveness. subsidies on inputs. savings and credit clubs. Note should be made of the adequacy of distribution and storage facilities. that could form the basis of future WUAs. customary or otherwise. and special institutions (such as NGOs) operating in the project area. and reliability of the figures should be given with reference to cadastral surveys and maps. marketing and supply cooperatives and/or local systems of village administration. The respective roles of the public and private sectors in input supply and marketing should be examined. The basis for. The rules or customs for land tenure should be described. the system of local government administration. for supplying inputs and marketing farm produce. D.) should be described. including WUAs. etc. Dynamic factors in the situation (trends in tenure arrangements. railways. Availability of electricity (especially for powering pumps) should be noted.) in the project area should also be described and evaluated. Support Services and Farmers’ Organisations. redistribution or consolidation be necessary and practicable?). should be highlighted. airports). This should briefly describe and evaluate the local activities of extension. proportion of owner and tenant-operated farms.
and thereby point the reader towards possible solutions to be taken up in the planning of the investment. such as waterlogging and salinisation. supported by maps and figures. except that if the existing scheme has resulted in any significant adverse environmental impacts. export. and compare its original objectives with reality in terms of: • intended and actual command area. The chapter should be diagnostic in its approach. if appropriate. to demonstrate the sectoral context of the existing scheme. to cater for an investment in the rehabilitation and upgrading of an existing scheme. The Economy and People This should be similar to the corresponding section in Chapter 3 above. • intended cropping patterns and means of disposal of output (ie local markets. . Location and Natural Resources This section should be similar in content to that in Chapter 3 above.) • intended and actual land tenure arrangements A brief technical description of the existing water supply. It should for example explain the reasons for water shortages or poor O&M. rather than simply stating that these problems exist. C. except that the description of the people should. Description of Existing Facilities This should summarise the development history of the existing system (when and by whom planned. operated and maintained). B. A. etc. Water resources should be dealt with on a region or basin-wide basis. together with a description of the on-farm irrigation technology. The actual sequence of subchapters will depend on the circumstances involved. constructed. conveyance and distribution facilities should be given.Guidelines for Planning Irrigation and Drainage Investment Projects 121 THE (NAME) IRRIGATION SCHEME: PRESENT STATUS (3-6 PAGES) (ALTERNATIVE CHAPTER 3 FOR REHABILITATION PROJECT) The following describes the typical contents of an alternative to Chapter 3 above. these should be described under a separate heading later in this chapter. distinguish between those people of the project area who are involved in irrigation on the areas to be rehabilitated and those who are not. • intended and actual settlement patterns and numbers of beneficiaries.
and an explanation for any differences. It should preferably be based on detailed diagnosis from a SEPSS. • the reasons for any decline in areas planted or yields obtained. Present Condition of Irrigation Facilities This section will also be important. It should examine water availability and demand for the originally intended cropping pattern. Rural Services. intra-household dynamics (gender relations. if resources have allowed the latter to be performed. disaggregation of labour. 2: FAO Irrigation and Drainage Paper 46: CROPWAT .Guidelines for Planning Irrigation and Drainage Investment Projects 122 The analysis will in some cases be based on a diagnosis of the existing situation carried out as part of a SEPSS.A Computer Program for Irrigation Planning and Management. based on the use of FAO’s computer model CROPWAT2 and its computer 1: FAO's forthcoming computer model SIMIS (Scheme Irrigation Management Information System) will play an increasingly useful role in such work. Present Irrigated Agricultural Production This will be one of the most important parts of a project document for a rehabilitation/upgrading proposal. especially the extent of farmer interest in the project and implications for project planning. but any experience that is relevant to farmers’ participation in the scheme. should be highlighted. on household incomes. • problems and constraints from the farmers’ perspective. • any conflicts or competing demands for labour. F. health and nutrition. It should cover: • on-farm irrigation practices. compared with the original project concept. it should summarise the results of detailed surveys and diagnostic operational studies that should have been carried out on the existing system1. access and control over land. This may have included an examination of the impact of the project on the local economy. E. Group activities for O&M should be dealt with in a later subchapter. D. Infrastructure and Farmers’ Organisations This should contain much of the information listed in the corresponding section in Chapter 3 above. labour and capital. on farmers’ aspirations and felt needs. FAO Rome (1992). now or for the proposed rehabilitation. • past and present cropping patterns and yields and current trends. since it should review the present agricultural performance of the scheme. control of crops and income from their sale). . Depending on the scale of the project and the extent of operational data available.
• traditional authorities and farmers organisations (possibly including WUAs on existing schemes). and practical recommendations given for making O&M self financing. • local government institutions. EXISTING INSTITUTIONS AND PROJECT IMPLEMENTATION CAPACITY (3-6 PAGES) This chapter should highlight any institutional gaps or shortcomings that may form a constraint to implementation. as derived from an environmental impact assessment of the scheme which would normally have been made earlier in the planning process. Relevant institutions are likely to include: • central government institutions. It should lead the reader to conclusions on what must be taken into consideration in the project planning. • private sector organisations and NGOs. Environmental Impact of the Existing Scheme Significant adverse impacts as a result of the scheme should be summarised. H. 1: FAO Irrigation and Drainage Paper 49: CLIMWAT for CROPWAT. G. These should. FAO Rome (1993). . focus on measures that facilitate O&M by farmers and achieve more efficient and equitable water distribution and use. Causes of decline in the operational condition of the scheme should be listed. and the present use of the available water. The efficiency of water use and the condition and design of the existing facilities should be described with a view to demonstrating the scope and opportunities for improvements through rehabilitation and possibly modernization. Present Arrangements for O&M and Cost Recovery The present arrangements for O&M and cost recovery should be described and their effectiveness assessed.Guidelines for Planning Irrigation and Drainage Investment Projects 123 database CLIMWAT1 (or an alternative locally developed method of estimating crop water requirements if this is appropriate). in particular.
and indicate what kind and scale of project would be best suited to the existing circumstances. The analysis may also have resulted in conclusions that affected the choice of project concept or scale. O&M and institutional capacity building which follow in Chapter 6. imbalances and inconsistencies. in terms of staff. carried out earlier in the planning process and detailed in an attached annex or working paper. but should then explain the reasons why the particular project concept which is now being brought forward for financing was chosen. taking account of the requirements of the project. and so on. justification and feasibility of the project proposals that are to be made can be appreciated. It is the part of the project document which is most likely to repeat arguments developed first when the project was being conceptualised. PROJECT RATIONALE AND PLANNING CONSIDERATIONS (3-6 PAGES) This chapter leads to the point at which the overall needs. and whether there are areas of weakness. physical facilities and budget. It may briefly refer to options that were discarded or adjusted at earlier stages. late release of funds. • The performance of the institutions in fulfilling their objectives in a timely and efficient manner. Based on the information already given in the background sections of the report. whether they are still valid or whether there is a need for redefinition (eg through new legislation) or reorientation. and anticipation at this point should be avoided. However it is not the purpose of this chapter to present the actual project proposals: that function is left to Chapter 6. should have established: • The goals and objectives of the institutions concerned. but modified and deepened to reflect the findings of further thinking or studies. operate and maintain the proposed project. for example delays in decision-making. As a result it should have led to recommendations to achieve sustainable improvements in existing capacity that will enable the institutions concerned to successfully implement. define its overall objectives. problems over procurement of goods. its purpose is to complete the explanation of why an irrigation or drainage investment is needed. and the proposals for project organisation and management. cost recovery. . and planning the proposed investment. This should therefore lead into the project rationale and design considerations covered in the next Chapter. • The resources of the concerned institutions.Guidelines for Planning Irrigation and Drainage Investment Projects 124 An institutional capacity analysis. The analysis should in particular have resulted in an assessment of the capacity of the institutions concerned to implement the proposed project. and whether there are any significant operational problems.
rehabilitation. the process of project planning usually involves the establishment of broad objectives. This section on design considerations is the place to present the results of that process. • the demand for the project. • the justification for a programme approach. expressed in terms of demonstrable willingness of the potential users to commit themselves to contributing towards the capital cost and acceptance of responsibility for O&M. and in terms of markets for irrigated crops of sufficient value to justify the investment costs incurred by government and farmers. should be built into the project. for example targeting small farmers in a project proposed for IFAD financing. attention needs to be directed to defining the specific form that it should assume and to explaining this to the reader. drainage) and/or location of the project. and the constraints imposed by existing institutional capacity or fiscal arrangements. Project Rationale Against the background of the previous chapter.Guidelines for Planning Irrigation and Drainage Investment Projects 125 A. this should discuss the objectives of government’s strategy for the irrigation subsector. design. a review of the options for achieving these objectives and a progressive narrowing down of these options. focusing on the considerations which have led the concept outlined in the rationale to evolve into the project and its main components in their final proposed form. needs special treatment). but without whose influence the project might nevertheless not succeed. where the aim is build demand for subproject investments and to encourage participation in planning. new irrigation. construction and O&M. B. In particular. This leads to decisions on the strategy which. it should address questions such as : • selection of the target population for the project and any special targeting measures required to ensure that the project really does benefit these people (the complex issue of how to prevent project resources bringing undue benefits to persons outside the target group. As indicated in Part II of the Guidelines. It may also explain how the proposed project meets the financing criteria of the financing institution. as a consequence. the criteria which have led to the selection of the type (eg subsectoral investment. . • the commitment and capacity of government to implement the project. Planning Considerations Once the conceptual case for a project has been made under the section on project rationale.
Guidelines for Planning Irrigation and Drainage Investment Projects 126 • the appropriate scale for the project: this should give special importance to an analysis of the scale and success of any precedents. and the managerial and supervision arrangements. particularly the means of securing their effective participation in project management and costs through WUAs and/or apex organisations. should be foreshadowed under planning considerations. policies and institutions. a very important element of the section on planning considerations should be a discussion of the possible mechanisms to be used to provide it and of the safeguards to prevent its abuse. • the scope for achieving efficiency gains at low incremental cost by rehabilitating and upgrading existing irrigation systems. as is often the case. to create a new organisation or to privatise it. If flexibility is to be attained. reference should be made to the performance of previous phases. This is also the place to mention to the need to build flexibility into the project.so that these can readily respond to new information or opportunities that arise in the course of implementation. to assessments of institutional capabilities and to matching the project scale with these. by the creation of a Development Fund. and to say how this could be done in ways which are consistent with the funding practices of the financing agency. There is often little scope for flexibility in “hard” projects centering on. • the choice of technical strategy and technology to match O&M capacity (eg upstream versus downstream control. though dealt with in detail in subsequent sections of the report.) and/or traditional water rights and methods of distribution (eg division structures that maintain traditional rights and farmers’ operational preferences). to accommodate capacity-building measures.for demanddriven development . automation etc. • the appropriate time frame for the project and phasing within this. for instance. environmental concerns and risk exposure. whether WUAs should be built on existing structures. regulatory mechanisms. . and it should be explained how the lessons learnt from their evaluation would be taken up in the planning of the later project. and • the need for any ancillary adjustments in laws. the construction of major civil works. the technical and economic criteria to be used in approving releases for subprojects. but there are many advantages in planning “soft” projects . economic and financial viability. including traditional irrigation systems. Where flexibility is being sought. • the selection of organisational arrangements for the project: for example whether to reinforce the existing entity to run the project (on financially autonomous lines). In the case of repeater projects. the strategy for eliciting and sustaining the commitment of the intended beneficiaries to the project. it should also examine the implications on project size of market possibilities. traditional or other.
and so derived a project rationale and objectives.Project Objectives. and its supporting annexes. defines the project works and activities. In describing the project it is convenient to distinguish between project objectives and their related components on the one hand. Components and Expenditure Categories A project normally has specific objectives that can be expressed in relatively simple terms. and to identify and promote new irrigated crops. with considerations for planning.550 ha distributed among 14 existing schemes. for example could include • rehabilitation of 1. such as: • to restore to full productive capacity around 1. their phasing. Components. Box 2-1 . • farm development. • capacity building of irrigation subsector institutions • research and extension • project management and implementation Expenditure Categories (known as summary accounts in COSTAB terminology) are used to classify the items against which disbursements will be made under the project. for each objective or component of a project there are likely to be several categories of expenditure. • to form water users’ associations (WUAs) and to train farmers in operation and maintenance of irrigation systems and irrigated crop production. costs and how they will be financed. • to build the capacity of government and private institutions involved in irrigation development. • to develop irrigated crop production technologies adapted to smallholders. including equipment for surface and sprinkler irrigation. This chapter.550 ha of existing irrigation schemes previously operated as state farms. greenhouses and seasonal inputs. maps and figures. such as: • • • • • Civil Works (with users’ contributions separately shown) Equipment Technical Assistance Training Incremental Operating Costs (with users contributions separately shown) Each of the above may in turn be broken down into a series of items and ultimately into a set of detailed specifications for goods and services. Thus.Guidelines for Planning Irrigation and Drainage Investment Projects 127 THE PROJECT (OR PROGRAMME) (5-10 PAGES) The previous chapters will have set the framework of constraints and opportunities for investment. and expenditure categories on the other (see Box 2-1). . smallscale farm machinery.
power distribution lines). quantifying the main physical items that are proposed for financing. agricultural machinery for hire. also. it often helps to note in brackets at the start of the component description its total cost and the percentage of project base cost which this represents. General Description This section.). • organisational arrangements for implementation and subsequent O&M. Increasingly. • Provision of equipment for operation and maintenance. on-farm canals. wells and pumps). pumping stations. • a brief summary of each main component. houses for project staff. The nature and scope of project actions should be described in sufficient detail for the general reader to appreciate their relevance and technical soundness. tubewells. warehouses. feeder roads. Detailed Features The aim of this section is to describe the project in more detail so that the reader acquires a fuller understanding of each of its components and the inter-relationships between them. canals. etc. levelling. • On-farm works (land clearing. The usual content is: • a brief description of the project or programme’s overall and immediate objectives. farm drains. workshops. experimental farms.Guidelines for Planning Irrigation and Drainage Investment Projects 128 A. • Ancillary works and buildings (offices. etc. market facilities. drains. grouped under expenditure categories if appropriate. • its location and size (if a project-specific investment). • costs and phasing. engineering design details and cost estimates should remain in annexes or working papers. vehicles for extension staff. Although the cost estimates are only presented in detail in Section F of this chapter. which generally should be no longer than one page. B. (workshop equipment. Component résumés might cover the following: • Main civil works (dams. The section usually contains a separate résumé for each of the project components. stores. but lengthy descriptions. leaving the description of the broader (not component-specific) institutional arrangements for section C of this chapter. major structures. It can often be quoted more or less intact in the Summary and Conclusions at the beginning of the Report. specifications. packing and processing plants. presents the reader with a brief overview of the proposed project or programme. financing agencies prefer each component résumé to end with brief reference to the field level implementation arrangements. .).
and treatment will depend on the nature of the investments. the level of design required for appraisal of civil works and machinery is a matter of engineering judgement. such as dams. Detailed site investigations are normally required. While only a summary description is required of each component in the main text of the report. ie whether project specific. • Rehabilitation and modernization of existing irrigation schemes. working papers or separate studies. specialised processing plants or main roads.Guidelines for Planning Irrigation and Drainage Investment Projects 129 • Farm equipment (the provision of farm facilities. land settlement and land consolidation). livestock and the establishment of permanent crops). main canals. such as research. • Measures to improve the agrarian setting (changes in land tenure or ownership. • Land acquisition. • Institutional development. . A summary of the extent of detail and degree of accuracy appropriate at each step in the design is given as Appendix 1 (at the end of Part II). For a sectoral project the components may include some of the above as well as: • Technical assistance for diagnostic studies of existing irrigation schemes. which should always be consulted. • The credit programme required to enable the private components of the project to be financed. agricultural implements and machinery. • The provision of training and expatriate technical assistance (eg consulting firms). extension and training. this must normally be derived from more detailed specifications and estimates given in annexes. to which reference should be made. resettlement and rehabilitation. for subsequent management transfer. Project specific investments may be considered in three broad groups: • Important major works. and to permit the significant engineering work quantities to be estimated to an accuracy of some 15% as a basis for cost estimates of the same order of accuracy. or programmatic within a subsectoral project. and at least preliminary designs and specifications should be completed to a sufficient degree of detail to demonstrate that they should not need appreciable alterations at a later design stage. However. All multilateral financing agencies have strict procedures to be followed in engineering studies and designs for major dams and for major resettlement of people displaced by reservoirs or other major works (see Parts I and II of the Guidelines). for the main implementing institutions as well as for supporting services. Level of Detail Required. • Environmental studies and actions • Institutional development assistance for government institutions and WUAs.
In contrast. rather than the level of engineering work that has been completed. In the absence of specific instructions from the financing agency. levelling and farm drains. A properly designed land classification can do much to help estimate costs of land clearance. detailed sample topographical surveys are needed to calculate quantities. for example. Typical designs should be prepared for the main farm or land types. except that the World Bank requires that “by the time of appraisal/negotiation. although in areas of irregular topography it may be necessary to design on the basis on large-scale sample surveys.it normally would be necessary to commission detailed engineering studies. etc. or where the extent of possible error is greater than that considered tolerable . to shorten the project cycle and provide accurate project costs”. construction and O&M is envisaged it is usually undesirable to complete investigations and cost estimates for each subproject prior to appraisal. where the degree of accuracy of the preliminary estimates is difficult to determine because of lack of adequate engineering or survey data.and particularly in respect of those projects with borderline economic rates of return . such as tertiary and quaternary irrigation channels and drains. In this case it is usually acceptable to specify design criteria and per hectare cost ceilings. For these it is necessary to complete surveys and prepare detailed designs and quantity estimates for representative sample areas. and. Most financing institutions accept that preliminary design standards form a satisfactory basis for appraisal. subsectoral investment projects often involve numerous subprojects that might be widely distributed throughout a given region or country. In this case it is the clear definition of the rules and procedures for the selection process that is important at appraisal. for the main canals or storage structures of an irrigation project. • For minor works. This is often the case. On-farm works are usually adequately designed on a “model” farm basis. engineering work (field investigation and detailed design) should be well advanced so that bidding documents are available about the time of Board approval.. Where a significant amount of land levelling is required. such as small structures. Total quantities and costs for the whole component can then be derived by extrapolation. for the area to be covered in the first year of the project. investigation and engineering design of subprojects that are to be carried out during the project. engineering designs should not proceed beyond the point of completing the work and studies necessary to provide an adequate basis for appraisal. in all cases. If participatory planning. estimates can be derived from standard type designs. farm access roads.Guidelines for Planning Irrigation and Drainage Investment Projects 130 • Relatively homogenous repetitive works. These govern subsequent selection. . Nevertheless. to facilitate tendering.
For short term credit. How they would carry out their responsibilities should be explained. Project Organisation. the requirements should be estimated. the changes and improvements which the project would introduce to overcome them should be stated clearly and prominently. and the proposed loan would directly finance the capital and annually recurring costs of construction equipment. A distinction should be made between long. Longer term credit needs should be assessed from investment models. the equipment should be justified and itemised. equipment. structure. Management and Coordination The entity or entities which will be responsible for the various aspects of project execution should be identified. In some cases it may be necessary to consider reductions in project scope to conform with institutional capacities. If the entity is not a government department. etc. according to whether the loan is for fixed improvements. the size of loan. operating procedures. medium and short term credit. how appointed. as well as for subsequent operations. usually in an annex. that they have the powers. If farmers require credit for on-farm development. In any case provision for credit should take account of the repayment capacity of the farmers in relation to the terms and conditions suggested for the loans. particulars should be given of its legal charter (basic law) and direction (Board of Directors. extent to which subject to political directives. it is necessary to give. These should be in the form of a lending programme with estimates yearby-year of the numbers of loans to be made to farmers. and the type of loan and purpose. internal organisation.Guidelines for Planning Irrigation and Drainage Investment Projects 131 Where works are to be constructed by a government agency rather than by contractors. functions and powers.) and any special provisions concerning its funding. and previous response to credit facilities. finance and motivation to undertake their respective functions. Where deficiencies in any of the foregoing respects have been noted in earlier background material. pumps and so on. C. that they are capable of carrying them out effectively. and that there are satisfactory arrangements for coordination between (or within) entities responsible for each of the various project activities. The aim should be to show that they are the most appropriate bodies to assume the particular assignments. details of its proposed legal status. Should any new institution have to be created for the management of the project. staffing and budget. staffing. for purchase of machinery and equipment of for annual operations. . requirements per farm should be estimated on the basis of data presented in crop budgets and farm models.
staffing and annual operating budgets required for each should be defined. Often there are executive and non-executive entities at various levels .Guidelines for Planning Irrigation and Drainage Investment Projects 132 If there is more than one entity involved in project management (such as a project authority. with well defined targets over the disbursement period. from full cost recovery of all capital and O&M costs (taking account of any contribution from the farmers). advisory or coordinating bodies. or hire and fire top-level staff. Bodies in the former categories may decide or make recommendations on overall policy. WUAs or combinations in joint management. commissions and committees. regional and in the field. supply the former entities with the basis . For projects for which significant changes in organisation are required. This would be the case. Executive bodies.on which to exercise these responsibilities. on the other hand. distribute assignments between different participating entities. they then implement their decisions and report back on results. budgets.for instance national. particularly if these are new or changed and have not been fully addressed in the description of project components. it may be useful to supplement the overall description of organisational arrangements with a more detailed treatment of the specific aspects which are critical for project success. for instance. The responsibilities. accounts or reports. Cost Recovery and O&M This important section should identify overall institutional responsibility for O&M in the short. together with any related measures to improve the overall environment for an expanded private sector role. if a new system for participative planning was to be developed and introduced under the project. a government department and a credit institution). The steps to be taken to privatise or divest activities previously performed by government would also be appropriately described here. and those with executive powers. and in field activities should be described.usually information . Estimates should be presented for water charges for a range of cost recovery scenarios. to O&M plus a . approve plans. A distinction should be made between policy. medium and longer term. or if modified organisational measures were to be incorporated in the project with the aim of improving on-farm water management in irrigation schemes. Proposals should be made for the formation or strengthening of all institutions involved or likely to be involved in O&M. arrangements for coordination in such areas as joint representation boards. D. As it is likely that the project will involve devolution of at least some responsibility for O&M to the users. authorise major expenditures or contracts. including autonomous or semi-autonomous irrigation agencies. the extent to which this is expected and over what period of time should be clearly explained.
which may be at home or overseas .of equipment be clearly identified. such as numbers of staff to be trained at certificate level in water management. it should be explained how it would be phased out and how the functions would be subsequently assumed by regular staff. the practical experience to be acquired afterwards. in terms of staff recruitment. In a sectoral programme institution building often forms a component in its own right. training. The minimum qualifications for candidates should be defined as precisely as possible. it is essential that the intended use . The initiation of such mechanisms should if possible be incorporated in to the project. equipment. Recommendations should then be made for setting an appropriate water charge that is affordable. and supply of office. If technical assistance is proposed. technical assistance.Guidelines for Planning Irrigation and Drainage Investment Projects 133 percentage of capital costs. as well as for good project management. such as the completion of engineering designs. Clear targets and performance indicators should be set. and their expected work locations on completion of this training. E. scarcity value and opportunity cost of water which should have been presented in the subsector review and strategy paper. Similarly the intended location of all project staff and the expected duration of their assignments should be clearly indicated. vis-à-vis the cost of supply.and the duration of training. yet covers the cost of supply to the extent required by policy and induces efficient water use. objectives. the numbers of staff to study for an MSc degree.and place of use. If the technical assistance is not for the completion of a finite task. and possibly construction. Mechanisms by which government can replace all equipment once its useful life has expired and the project has been completed should be spelled out. Practical procedures for collection of water charges should be described. perhaps involving a pilot scheme initially to test the proposed system. . or. Institutional Capacity Building This section should present proposals for building capacity to implement the project. for a project or programme extending over more than one region . their expected place of training . measurable performance indicators and reporting arrangements specified. These should be crossreferenced to the considerations of water pricing. giving numbers of trainees. Training or re-training arrangements should be described in detail. numbers expected to be involved in practising their new skills and their location. since the objective is to build capacity that will continue to be available for subsequent developments once the present project is completed. draft terms of reference (see Annex 3) should be given and functions. to O&M only. for further example. As an aid to subsequent supervision and evaluation missions.
In principle the engineering cost estimates should include all incremental goods and services required to complete the planned works. for instance under the World Bank’s Project Preparation Facility. Amounts. Estimates should include all capital costs and incremental operating costs incurred by government during the disbursement period and for the subsequent operation of the project. management and monitoring of the project. • Feasibility study and project planning costs.Guidelines for Planning Irrigation and Drainage Investment Projects 134 F. either foreign or national. if these have been financed by reimbursable loans from the financing agency. This may not be the case however if capacity building becomes one of the major objectives. • Training.ie. both overseas and local. can only be calculated once a financing plan has been finalised. aimed at improving staff capabilities: most frequently training is related to meeting the staffing requirements for implementing the project. Cost estimates for the main civil engineering works should be based on bills of quantities. related to specific project components such as “project management”.incurred during the disbursement period specifically for the implementation. Project Costs The importance of sound cost estimates cannot be over-emphasised: they provide the basis of determining the project’s economic and financial viability and also its funding. aimed at increasing the capacity of concerned institutions to implement the project. • Engineering costs and fees that would be incurred during the disbursement period. derived from preliminary designs and justified unit rates. . rather than as a project component in its own right. Note that such technical assistance is often treated as a category of investment expenditure. • Technical cooperation. however. but usually training aimed at more general institutional strengthening also qualifies for project financing. Most financing agencies have broadened the definition of eligible cost items to include such items as : • Incremental operating costs . Costs of on-farm development may be drawn from an aggregation of representative farm models but it should be clearly indicated whether or not these include cash or non-cash contributions (eg in the form of family labour or locally available materials) by farmers. • Interest during construction: some financing agencies are prepared to consider as a project cost interest payable during the disbursement period of the loan. recurrent costs over and above the “normal” running costs of the concerned agencies . Costs of major equipment items are normally based on recent quotations from potential suppliers. Projects have long ceased to be regarded as vehicles for financing capital investments only.
are appended to this Annex. Project Costs. For projects being prepared for financing by IFAD. Should they be included. except in cases where a significant area has to be acquired by government for project implementation purposes (eg for construction of main canals in an irrigation system or for siting of a wholesale market). additional cost tables are required to show a cost breakdown which separates out direct support to farmers (eg. expressed in local and foreign currency equivalents. Items conventionally excluded from project costs are: • Sunk costs: costs which have been incurred prior to the commencement of a project (eg in constructing a dam prior to a project which wold complete the irrigation water distribution network) are conventionally excluded from project cost estimates. • A project cost summary by component. resettlement and rehabilitation costs. • A project cost summary by expenditure category classified by year of disbursement.Guidelines for Planning Irrigation and Drainage Investment Projects 135 • Working capital. to cover the projected incremental operating costs required to bring a project-funded enterprise to the point at which it reaches steady-state operation. rates and amounts should be indicated so that appropriate adjustments can be made in the economic evaluation. for example by a new dam. from the PCCOMPASS suite of programmes. • Taxes and duties: duties and other taxes on imported goods are usually excluded from project cost estimates. Up to five summary project cost estimate tables can usefully be included in the main report. classified by component and expenditure category. inputs) from funding for government institutions . especially if the government has agreed to waive these. • A project cost summary by expenditure category. • Land: the value of the farm land required for the project is normally excluded from project costs. expressed in local and foreign currency. prepared using PC-COSTAB. • A project cost summary by component and year of disbursement. • Land acquisition. credit. where substantial numbers of people are displaced. • A summary breakdown of project costs. but the amounts already invested should be noted if these are known. showing the proportion of total costs attributable to each category. The text of the main report conventionally refers to the total costs implied by the project proposal (ie to all incremental expenditures which should be incurred during the course of the proposed disbursement period). Examples of the above.
• explain assumptions on physical and price contingency rates. the value should be clearly identifiable. salaries. Estimates should all relate to the same date. for the purposes of estimating project costs. as an “unallocated” component). Nor should they be added to give a project greater flexibility.Guidelines for Planning Irrigation and Drainage Investment Projects 136 (vehicles. giving an indication of their accuracy. Here it is advisable to “freeze” all unit values in local currency at an indicated date and exchange rate. In the latter case. and from then on quote all values in US dollar equivalents. • highlight the importance of any major elements. The rate of physical contingencies to apply varies according to the degree of confidence placed in the estimates but. Assumptions should be explained. the amounts allocated should be identifiable (eg. and an analysis of the cost per farmer of each component (or the cost per household of each credit module to be taken up by farmers). commonly lies between 10 and 15 percent by the time the project dossier is completed. if the costs of any payable taxes and duties are included. which should be specified and is usually around the time of the compilation of final project dossier or appraisal. buildings. for civil works. Baseline costs are expressed in market prices in constant terms. An indication should be given as to the accuracy of the cost estimates and how these have been derived. Under exceptional circumstances it may be greater if local conditions preclude accurate estimates. • provide an estimate of the total costs of the foreign exchange component of project costs: this includes both the outlay on fully imported items and the estimated import content of goods and services paid for in local currency (eg. as follows: • Physical contingencies are included in the project costs to allow for uncertainties and to compensate for possible inaccuracies in the estimates of work quantities. Special problems arise when preparing cost estimates for projects in countries which suffer from rapid inflation and regularly devalue their currency. • distinguish between capital costs and those recurrent costs (eg for training) which have been treated. operating costs). however. They should not. be treated as a miscellaneous category of costs to cover items either overlooked by the planners. It should : • indicate the sources (and dates) of unit costs from which the estimates are derived. as investment costs. Contingencies should be added to the base-line costs at rates specific to each category of expenditure to determine total project costs. the imported elements of locally-assembled pumps). . The text of this section of the document is usually “written around” the tables. a cost breakdown which allows IFAD to distinguish the percentage of the base cost which goes to targetable versus untargetable components.
Typical values for developing countries are given below. Operating Costs. For projects that lead to substantial increases in recurrent costs to be borne by government. It may be desirable to comment on the government’s capacity to continue to meet the implied financial commitments. Assumptions on price contingency rates (which may be different for foreign exchange and local costs) should be noted. stores and housing. a table projecting operating and replacement costs after the close of the disbursement period should be prepared. probable countervailing movements of the exchange rate should be taken into account in establishing the dollar equivalent of domestic inflation. should include inter alia the following: • salaries and allowances of O&M staff. In such cases. • costs of special repairs. but estimates of the annual cost based on a percentage of the capital costs are sometimes appropriate. It should be noted. as well as standard assumptions on international rates. maintaining and replacing the assets created by the project. rates of inflation tend to be matched with corresponding devaluations of the currency. such as increased cost recovery from beneficiaries or privatisation of services. . • running costs of O&M vehicles and plant. however. offices. together with those on the assumed period between the date of the base-line cost estimates and project effectiveness. • where applicable. Annual cost estimates. Maintenance costs should be calculated in detail wherever possible. and the cost of operating services at the levels necessary to achieve project objectives. and on any steps that would be taken to improve fiscal sustainability. that in countries which operate floating exchange policies. so as to avoid possible over-financing in dollar terms. The table should show by categories the continued cost of running. The economics staff of financing agencies are usually in a position to provide project analysts with forecasts of inflation in borrowing countries. running costs of pumping plant.Guidelines for Planning Irrigation and Drainage Investment Projects 137 • Price contingencies may also be estimated (on phased base-line costs plus physical contingencies) to demonstrate the probable escalating effect of inflation on project costs and hence the magnitude of financing required. both for the economic analysis of the project and also for setting water charges. • maintenance of buildings.
Financing Some financing agencies. Particularly for disadvantaged groups.0 1.0 0.5 3.5 1. the proportion of incremental capital and recurrent costs which they are assumed to meet from either their own resources. Such a plan. unofficial borrowing or from project-funded credit.in cash or kind . Assurances of government capacity to meet its proposed share of project costs should be sought. but not the World Bank or IFAD. the government. however.to project financing may need discussion.5 2.0 1. Assumptions on the beneficiaries’ contribution . implementing agencies (from their own resources). especially for projects in countries which have a record of failure to meet counterpart funding obligations in earlier projects. care must be taken not to imply a commitment of the agencies to the proposal. in the form of a table.0 1. Since the final plan will be a matter for negotiation between the financing agencies and the country concerned. underground) Buildings Electric powered pumps Diesel powered pumps Night storage reservoir Piped distribution systems Portable pipes and sprinklers Field canals and structures Land grading Fences Drains (sub-surface) Drains (open) Annual Maintenance Cost as Percentage of Initial Capital Cost 1.0 Replacement costs are forecast for the year in which they are expected to occur. would indicate for each main expenditure category the amount proposed for financing by external financing agencies.5 2. credit institutions and beneficiaries.Guidelines for Planning Irrigation and Drainage Investment Projects 138 Type of Works Diversion structure/weir Main canal (unlined) Main canal (lined) Pipelines (AC and PVC. but using constant prices. More frequently. and in any case it is the prerogative of the financing agency to determine what it will or will not finance. eg extension services. ie similar to those used in the initial capital cost estimates.0 2. expect a preliminary financing plan to be proposed by the country submitting the project before appraisal.0 2. Other annual recurring costs may include the incremental annual costs of other public services. may need to be justified. a proportion of local costs may also be financed. .0 2. It is perhaps pertinent to point out that some financing agencies restrict financing to the direct and indirect foreign exchange component of the project.0 5. G.0 1.0 6.
and how reimbursements would be made. may respond to changes in the supply and demand situation. AGRICULTURAL PRODUCTION AND RESULTS (4-6 PAGES) The purpose of this chapter is to describe agricultural development and production proposed under the project. derived from these and the models. In turn. Reference should be made to eligibility criteria (including any special measures for improving access of women. provided that this is not masked by the presence of price controls or subsidies. For projects with a substantial credit element. the behaviour of costs and prices. with particular attention being given to the technological changes which would be introduced by the project.Guidelines for Planning Irrigation and Drainage Investment Projects 139 For all projects an explanation should be given either here or in Chapter 11 as to how funds would flow and be monitored. sub-loan periods. drawing on crop budgets and farm models. A. grace periods. of the impact on the output and income of typical participants. the landless or other disadvantaged groups). arrive at estimates of the overall impact of the project on farm development and output. especially for farm outputs. and to ceilings and conditions for financing. This chapter should review the market prospects for the products on which the viability of the project is most dependent and justify the price assumptions used in financial and economic analyses of the project. interest rates in both nominal and real terms. Each of the proposed irrigation categories or types should be briefly described. B. followed by an assessment. The proposals should be supported by reference to research data and the actual performance of farmers. It should explain the assumptions made on the rates at which yields and cropping intensities will rise and. Agricultural Production The chapter usually starts with a review of the cropping patterns it is assumed will be introduced. and their impact on input requirements and yields. Market Prospects and Prices The financial attractiveness to farmers of the proposed developments normally depends on the relationship between the input costs and the prices for the commodities which they intend to produce. the terms and conditions under which loans would be made to farmers and other borrowers should be given. . and the expected results. Special note should be made if any of these differ significantly from standard loan terms in the country.
In such situations there is no need to dwell in the report on market issues. assess the extent to which the assumed prices are likely to be sustainable and. farm models or agribusiness enterprises. The report should demonstrate that market openings exist or can be opened up (at the financial prices assumed) for the incremental output expected to result from the project. normal input and output prices in the financial evaluation of crop budgets. It is conventional practice to use prevailing. In many cases. packaging materials) and infrastructure (eg. The adequacy of back-up services (eg availability of transport. Financial price assumptions for the main inputs and outputs should be summarised in a text table. For most major traded commodities. some specific market research may have to be carried out as part of the planning process. however. ITC and other agencies of the world market prospects. Consequently it is important that all prices and costs refer to the same point in time. which must be clearly stated. eliminating the effects of inflation which are implicitly assumed to affect input and output prices equally. as is usually the situation for non-perishable staple foods in grain deficit countries. and reference should be made to these and their conclusions. Prices. is an essential element in project planning. The analyst. test the sensitivity of the models to price changes. . should explain the nature of any key factors affecting price formation. a careful review of market prospects and of possible means of improving these (eg lengthening of production season). It is usual to make projections of prices in constant money terms. in the absence of the project. where the viability of a project depends on access to export markets or on sales of perishable commodities or of items of particularly high unit value. Growth in domestic demand can be estimated on the basis of projections of population and income. reviews have been made by FAO. or alternatively that the project area (or country) is competitive in serving the market vis-à-vis other potential suppliers. for highly specialised products. adjusted for transport costs and traders’ margins. and of assessments of income elasticity of demand. roads) also needs to be examined. there would be a shortfall in production vis-à-vis demand at the assumed prices in the target market. However. Occasionally. Farm-gate prices for farm-level analysis are usually derived from interviews with farmers or from wholesale and retail market price reports.Guidelines for Planning Irrigation and Drainage Investment Projects 140 Markets and Marketing. if there are doubts on this. no market problems exist. A main purpose of this review is to demonstrate that.
Models should be developed for each major beneficiary type. The basic models that are analysed in annexes and summarised in the main text should aim to represent average situations. as is the case in inflationary situations. and the technical strategy by which it is intended to open these opportunities to them. or in some cases. there is a major discrepancy between nominal and real interest rates. In practice however. Farm models also provide the basis for estimating the likely long and short term credit needs of project participants. labour. what would be the expected impact of the project on the income and welfare of typical individual producers. using estimated prices justified in Chapter 9 or an attached table or annex. an attempt being made to ensure that each model represents a typical situation in terms of farm size. while at the same time also holding prices constant. Earlier sections should have indicated the nature of the constraints and needs faced by each type of producer. The results summarised at this point should focus on the same strategy and opportunities but express the expected results in financial terms. unless there is any special reason to depart from such assumptions . and for forecasting their debt service obligations. 1: Chapter X. it is appropriate to adopt the real rate in calculating debt service obligations. or in some cases tenure status.for instance.. largely through reference to farm models. the opportunities for increased production. cubic metre of water etc. Impact on Individual Producers This section should show. FAO Investment Centre Technical Paper No 8 Financial Analysis in Agricultural Project Preparation. A further summary table or tables should be given for the key results from the analysis of the annexed financial models. without and with the project. . communities. if the expected output from the project would be big enough to depress product prices. If. Particular care needs to be taken by the analyst in estimating working capital requirements and the means by which these can be financed1 . cash expenditure. or through household models if non-farm income is significant. FAO Rome (1991). The cost and return implications derived from the financial analysis of the crop or enterprise budgets can usefully be summarised in a short text table which may also compare financial return per unit of land. Only after it is clear that all activities amongst the building blocks of models are financially viable is it justified to proceed to an analysis of a financial model of the complete farm or enterprise over time.Guidelines for Planning Irrigation and Drainage Investment Projects 141 C. Financial models should assume constant financial unit costs and prices over the period of analysis.
net production cost per ton. It is for this reason that. or perhaps to generate more of the family’s needs for subsistence food with less cash outlay. 2: FAO Investment Centre Technical Paper 6 The Design of Agricultural Investment Projects: Lessons from Experience. see Paper 81 A Methodology of Irrigation Water Budgeting. yield per hectare (or return per cubic metre of scarce water) may be the most important criterion to examine. On the other hand for large-scale commercial farming or processing. For a small-scale farmer the most attractive opportunity may be to earn more per day of family labour. in Branscheid V. a series of variants on the basic financial models may need to be run to demonstrate the extent of their sensitivity to risk or changes. the FAO Investment Centre Design Study2 suggests that many cases of under-performance could have been anticipated if these analyses had been made. The mere calculation of an attractive financial rate of return on investment should not be taken to imply that the proposed technical changes would necessarily capture the interest of all farmers. a balanced cash flow or the financial return on equity capital may be the critical parameters. . The overall aim of 1: For details of possible techniques. or of partial adoption of technology. For small farmers. fluctuations in water supply should be simulated for the period of intended economic analysis. Irrigation Water Management Briefs: 100 Collected Papers. often because of variations in water availability. concerns over the risks implied by innovation are particularly likely to affect the response to project opportunities. For the specialist vegetable grower who is restricted to a small irrigated area. Additional tests for risk and sensitivity which can be applied in financial analysis are discussed below.to be those most relevant to the people whom the project is intended to benefit. The variants may also be used to assess the implications for project participants of alternative pricing policies or market scenarios. For such reasons. The results of any financial model must be interpreted with considerable care. labour or risk. Tests for Sensitivity.Guidelines for Planning Irrigation and Drainage Investment Projects 142 results are likely to vary significantly from one year to another. Such financial examinations of risk and uncertainty are now relatively easy to run using computer programs such as the FARMOD module of PC-COMPASS. where available data permit. rather than simply assuming that the 80 percent exceedance probability flows would be available in all years1. FAO Rome (1989). so that resources can be freed for more profitable (perhaps off-farm) use. The analysis should always be made in those terms which are thought . FAO Investment Centre. The purpose of these variants is to show whether or not the project’s technical strategy is robust enough to sustain project beneficiaries through misfortunes such as a series of consecutive years of unfavourable weather or a drought falling in the first year of their project participation.or ideally have been shown through diagnostic studies . Some simple tests can be made on the financial results of enterprise budgets or farm models summarised earlier. Rome 1989.
B or C according to the World Bank or similar classification (see Box II-2 in Part II). Irrigation and drainage projects usually have a substantial effect on the ecology of the area in which they are located. where a predictable number of farmers is assumed to move into a formerly virgin project area each year. This chapter should therefore describe all adverse environmental impacts. D. and raising the demand for credit. The necessary calculations can be made using the FARMOD Programme. Impact at Project Level The remainder of this chapter should briefly summarise the aggregate impact of the project over time in generating extra output. or if the existing irrigation practices are to be upgraded as new main works benefit their farms.Guidelines for Planning Irrigation and Drainage Investment Projects 143 such tests should be to confirm the plausibility of the planning team’s assumptions on technological change. are expected to change progressively from rainfed to irrigated production. for instance malaria or schistosomiasis. equipment etc. It is important to avoid over-optimism on the pace of entry. SOCIAL AND ENVIRONMENTAL IMPLICATIONS (2-4 PAGES) As a reflection of the seriousness with which environmental issues are regarded. regardless of whether the project is rated as Category A. For a new irrigation scheme. on endangered wildlife. plus their financial values where appropriate. Short text tables should then summarise estimates of total and incremental physical quantities for inputs and outputs. Clearly the entry pattern must match assumptions elsewhere on the rate at which works would be built and become operational. output and input demand streams should start at zero and can be readily calculated by aggregation of one or more standard models using FARMOD. Tests should therefore be made only on the parameters previously identified as being crucial to the decision-making of the operators. Particular care should be taken to identify any effects on downstream fisheries. For groundwater irrigation schemes. the probable effects on the depth and quality of the aquifer should be noted.. The text of this final section of the chapter should indicate briefly the approach to aggregation which has been used. A similar aggregation approach is possible if farmers are already present on the land to be developed but. increasing demand for items such as seeds. creating new employment. and a forecast should be given in the report of the principal changes expected to take place. machinery. from the producer’s point of view. . the environmental impact of the project should be described in a separate chapter. for example. and on the prevalence of water-borne disease.
The costs of such action plans should be presented. apart from being economically viable in their own right.positive or negative . Rather it should be used as a tool in the planning process to arrive at the option that is likely to produce the best all-round results from all the choices considered. Changes in access to productive resources that could have an impact . but economic soundness alone. Earthscan Publications. Reference should also be made to expected effects of the project on other factors affecting living standards. disadvantages and risks of embarking on the proposed project. is seldom a sufficient justification for going ahead with a project.on the poor should be described. Economic Analysis of Environmental Impacts. the proposed irrigation or drainage investments are also justifiable in the broader context of national resource availability. The point must also be emphasised that economic analysis should not be used simply to provide a proof of project viability. and details given of their “with” and “without” project incomes. it is not enough simply to demonstrate that an irrigation project would generate satisfactory economic rate of return if there are. from a national point of view. . should be briefly described. 1: For guidance see Dixon J A et al. This chapter should seek to show that. especially nutrition. within the same country. It should also illuminate the strengths . All negative impacts identified should be highlighted in the text.Guidelines for Planning Irrigation and Drainage Investment Projects 144 The above information can be presented using the ICID checklist. Thus.and reveal any weaknesses . as measured by the rate of return on capital employed. the numbers of beneficiaries and any losers should be indicated. Convention requires that considerable weight be given to demonstrating the economic viability of the proposed actions. for example. The use of sensitivity analysis techniques is important in showing the nature and extent of risk to which the project is exposed and to point to possible means for improving robustness. education and the role of women. London (1994). such as resettlement and rehabilitation plans or special designs for structures. are consistent with the economic and fiscal policies of the government concerned and compatible with the funding policies of the intended financing agency. Action plans for mitigation.of the project. Under social implications. opportunities for producing the same level of output at a lower cost from rainfed farming. as should estimates of the environmental costs1 for inclusion in the economic analysis of the project. ECONOMIC JUSTIFICATION (3-6 PAGES) This chapter is intended to provide decision-makers in the government and potential financing agency with an appreciation of the advantages.
The economic benefits stream should include the value of the incremental output of the project. care should therefore be taken to avoid jargon and the use of excessively complex analytical techniques which may confuse rather than illuminate the basis for decision making. they should also include the operating costs incurred by the farmers. What is required is a clear and objective appraisal of all those factors that should be taken into account in arriving at well-informed decisions on the future of the project. The nature of such trade-offs and the extent to which they have been captured in the analysis which follows should be explained. Economic Costs and Benefits The project’s economic benefits. as well as in providing services and running the project’s management system.but not price contingencies) plus the operating. and the resulting incremental net balances. In the planning of any project.Guidelines for Planning Irrigation and Drainage Investment Projects 145 In writing this chapter it is important to bear in mind that the people who have to take decisions on whether or not to fund the project may not be trained economists or technicians. and it should be made clear whether distortions in the pricing of foreign exchange have been compensated for by the use of a shadow exchange rate or by the application of conversion factors to the price of non-traded goods. . consisting of the net incremental value of production attributable to the investments being financed by the project. maintenance and replacement costs of project works expressed in economic prices. or immediate potential benefits may be foregone in the interests of long term sustainability. The table constructed to calculate the economic rate of return should be given in an annex and should show the forecast streams of incremental costs and benefits. the cost of providing agricultural support services may rise substantially in response to a policy decision to increase the proportion of poor farmers amongst the project beneficiaries. A. compromises and trade-offs have to be made: for instance. For those inputs which could have a significant bearing on the viability of the project. It may be useful to include an introductory section which summarises the broad justification for the project in qualitative terms and guides the reader on the approaches adopted in analysing its expected impact. The distinction must be made between traded and non-traded goods. should be expressed in economic prices. an explanation must be given of the assumptions underlying the forecasts of economic prices used in project evaluation. Cost streams should include the capital costs of the project (including physical . as they accrue each year during the life of the project.
Guidelines for Planning Irrigation and Drainage Investment Projects 146 B. For projects aimed explicitly at alleviating poverty. the chapter should provide the reader with estimates of the without and with-project income distribution situation and any other indicators of the project’s expected impact on rural poverty. health. nutrition and education. C. quantified. the option has been chosen which is also best able to spread benefits widely and equitably. the chapter should include a review of its impact on the national balance of payments. Risks of an environmental nature however should be described in Chapter 8. Beyond these specific analyses any more general impacts that the project may have on the poorer members of the rural population should be mentioned. Effect on Balance of Payments To the extent that irrigation development has import substitution or export goals. These might include changes in access to drinking water. Thus the impact of irrigation development on the balance of payments should be mentioned only as a favourable side effect. . If the overriding consideration in project planning has been economic return on investment it should nevertheless be shown that. It is usually sufficient simply to indicate the annual level of net receipts once the project has reached full production. If the project is intended to bring special benefits to women. Impact on Income Distribution and Poverty Alleviation The relationship between the anticipated impacts of irrigation development on income distribution and poverty alleviation and the policies and priorities of the government and the lending agency should be discussed here. but it should be made clear that the net foreign exchange gains are not an additional benefit over and above those taken into account in the calculation of ERRs or NPVs (if these use a correct shadow price for foreign exchange). The costs per beneficiary and the expected earnings of the beneficiaries vis-à-vis wages in other sectors would also be relevant measures. this should also be explained. among outcomes giving a high ERR. The point to illustrate here concerns the relative weight which has been given to social versus economic criteria in deciding on the balance between components. these benefits should also be highlighted. Risk and Sensitivity Analysis The report should systematically examine each major potential source of risk to which the project is exposed and explore its possible impact. for countries where this would be a particularly attractive feature. in contrast. D. and if possible. the aim has been to maximise the number of beneficiaries subject only to each component exceeding a minimum ERR. If.
however.if not resolved in due time . compensation for oustees. issues tend to be related either to preconditions for project success or to points of possible incompatibility between the project proposals and the funding policies of the financing agency. To gloss over fundamental issues in the hope that they will disappear may simply raise false expectations.would delay or materially influence the successful implementation of the project. Thus. levels of subsidy on inputs. It is most important to bring such issues out into the open as early as possible in the planning process and to encourage their rapid resolution. an issue of the former type might concern the need to endow an agency with the necessary powers to manage the project. water rights. Later in the process. water pricing.Guidelines for Planning Irrigation and Drainage Investment Projects 147 The above should of course be consistent with statements on the project’s overall objectives made earlier under Project Rationale and Planning Considerations in Chapter 5. At the early stages of the planning process main issues frequently concern choices . Fiscal Implications and Cost Recovery This is the place to explain assumptions on cost recovery rates and mechanisms (eg contribution of free labour for construction or irrigation water charges) and the extent to which they would cover the capital and operating costs of the project. various problems or issues usually arise which need to be resolved by decisions of the government and/or the financing institution. technology and so on which have a bearing on the project concept. especially if they could have a major bearing on the feasibility of the eventual project.of scale. not to overload this section with trivial matters which can be readily resolved in the normal course of appraisal and subsequent project processing. It is equally important. ISSUES AND SUGGESTED CONDITIONALITIES (1-2 PAGES) A. E. action for environmental protection. pricing arrangements for farm outputs. . interest rates on loans to farmers. land acquisition and land resettlement plans. with an advance payment in cash or kind to demonstrate commitment. Those concerned should be alerted to problems which . implementing agency. Issues As a project moves through the planning process to appraisal and negotiation. Other issues of a similar nature which arise frequently in irrigation investment planning relate to criteria for screening and selection of subprojects. Amongst the latter issues could be the requirement of the financing agency that full costs of operating and maintaining public irrigation systems be recovered from the users.
projects are associated with. through meetings between various involved parties etc.for example. In reporting on issues which remain to be resolved. Policy changes may be aimed at addressing specific problems (identified in the Background and Rationale chapters of the report) which would otherwise prevent the successful operation of the proposed project. • cost recovery levels and mechanisms. it is useful to explain: • the nature of the intended reform and its objectives. or at times predicated on. and by whom a final decision would need to be made. and means of ensuring the users’ involvement in design and construction. but nonetheless essential prerequisites for its success. by collecting and analysing additional pertinent information. For each main policy change of this sort. if appropriate. • the respective roles of the public and private sector in development or the provision of services. Policy changes of direct relevance to irrigation and drainage investments typically concern such issues as : • land tenure. . • propose a timetable for arriving at decisions on the issue. direct terms the substance of what is at issue.Guidelines for Planning Irrigation and Drainage Investment Projects 148 legislation for water users’ associations. In this case the interdependence of the project and the policy adjustments should be made explicit. either before the launching of the project or during its implementation. fragmentation and consolidation. it is useful to : • explain in simple. the planning team may indicate which it considers to be the most desirable solution. B. • point out alternative solutions (to the extent that these exist) and outline the probable consequences of each course of action. • indicate the process by which the issue might be resolved . • the role of NGOs in relation to public sector services. It is therefore important to explain any changes in policy which the Government is committed to introduce. • enabling legislation for the formation of water users’ associations. • management and scheme ownership transfer.. Commitments and Suggested Conditionalities Increasingly. In other cases policy adjustments may be of a broader sectoral or macro-economic nature and not specific to the project. the introduction of changes in government policies.
Overall Implementation Schedule For most irrigation projects there is considerable interdependence between activities and components. Although conditionalities are usually the prerogative of the concerned financing institution. in approaches to consulting farmers on irrigation system design) while in others changes in legislation may be required. This final chapter should provide a clear statement on how the project can be effectively implemented. • preparation of a draft agreement with NGOs. • the level of present commitment to the proposed change. now facilitated by project management computer software. IMPLEMENTATION (3-6 PAGES) As discussed in Part I. for example for community animation or support to WUAs. the functions of which have been privatised) and measures adopted to mitigate these. redundancy in state enterprises. conditionalities might include: • preparation of a draft timetable for introducing new legislation or changes in administrative procedures. the intended timetable. and the organisational responsibility for bringing it about. • opening of a Special Account. planning must now be increasingly focused on matching proposals for investment in irrigation and drainage with capacity for implementation. • appointing specified senior project staff. • preparation of a list of qualified consultants and contractors for civil works. • possible side-effects of policy changes (eg. The use of formal scheduling tools such as critical path analysis. and careful thought is required in its drafting. if available. A. From the above. • appointment of auditors. is recommended for the preparation and monitoring of an overall implementation schedule. • preparation of the necessary documentation for inclusion of the project in the government budget. This should list all steps that have to . should be annexed to the report. It is a crucial part of the investment proposal. their careful consideration during project planning will assist those responsible for appraisal and implementation to approach their respective tasks in a state of readiness. draft legislation.Guidelines for Planning Irrigation and Drainage Investment Projects 149 • the measures through which the policy change would be adopted : in some cases these might simply involve changes in procedures (for example.
and earliest and latest start/completion dates.Guidelines for Planning Irrigation and Drainage Investment Projects 150 be taken to execute the main components of the project. award of contracts and mobilization of staff. • identify the individuals required to perform the necessary tasks. or at a startup workshop as soon as the loan has been negotiated. • explain the need for and approach to preparation of annual work plan and budget. training and research institutions (assistance with training and extension programmes). before this chapter comes to be written. Whenever possible they should have been defined and agreed at a workshop with the intended implementers during final planning. list demands on management staff or skills in potentially short supply and note other potential constraints or risks. • define the time required to achieve these. These activities usually form the subject of the first annual work plan and budget. they should be discussed at a subsequent review of the draft project dossier. place them in operational sequence. annexing brief responsibility and job descriptions. and possibly temporary site accommodation. . Invitations to bid and bidding. Invitations to bid and bidding. consulting companies (for engineering design work). bid evaluation and award of contracts. If not. B. Activities to Achieve Loan Effectiveness This section should provide crucial information for the gearing-up process for the project implementers. • Preparation of procurement packages for project vehicles. contract negotiation. With the aid of the overall implementation schedule it should: • identify the tasks to be completed in order to satisfy the suggested loan conditionalities. C. bid evaluation. Activities for Completion in Project Year One This section should identify and bring to the government’s attention all the essential tasks to be undertaken during the first year of the project. • Preparation of terms of reference for technical assistance services from NGOs (for demand animation or training of WUAs). identify the critical activities. construction plant and equipment. and their listing in the project document can be of great assistance in getting the project off to a flying start. • hence define the earliest date for project start-up. The following are tasks that often fall within the first project year.
Procurement Most multilateral and bilateral financing institutions have their own requirements for procurement that are set out in guidelines issued for borrowers1. However. 1986). • Negotiation of agreements with communities on their labour or other contributions to project implementation and subsequent O&M. • Participatory planning with farmers for irrigation water delivery/distribution systems and in-field works. Programmatic work consisting of many small scattered subprojects is not generally attractive to international companies and does not usually require ICB. local contractors. • Initiation of farmer training and extension programmes. the principle of competitive bidding will still apply for local purchases or the use of local contractors. Whatever the expected procurement procedures they should be summarised here. with. Sample Bidding Documents: Procurement of Goods and Procurement of Works. World Bank and Inter-American Development Bank. • Initiation of a staff training programme. • Six-monthly interdepartmental review/planning workshops. for example. bidding. • Cadastral surveys.Guidelines for Planning Irrigation and Drainage Investment Projects 151 • Initiation of information campaigns and animation procedures for demand-driven development. where appropriate. • Additional site investigations and topographic surveys. D. (1985. • Preparation of bidding documents for aerial photography and mapping. This should be reflected in the overall implementation schedule and phasing of the project costs. 1: See. These should be referred to and their applicability to the items to be procured under the project should be explained. . • Detailed engineering designs and cost estimates for subsequent year’s construction work. if appropriate. Under prescribed conditions preference may however be permitted for local and regional manufacturers and. Invitations to bid. an assessment of local capacity to supply different categories of goods or services. An estimate should also be given of the likely time requirements to undertake the various procurement procedures for the main project items. bid evaluation and award of contract. The major financing institutions usually require that borrowers obtain goods above a certain value and contract major civil works through international competitive bidding (ICB) open to suppliers and contractors in all of their member countries.
Management and Institutional Development Plan Social and Environmental Impact Assessments (for Category A projects. 10. For example. and analysis and design for upgrading. but the scope and content of some of them will be different. frequent cross-referencing should be made to the annexes in the main text. A typical set of annexes for a project document covering a new irrigation investment project might be: Sociological Analysis and Definition of the Target Group Soils and Land Capability Climate and Water Resources Water Rights and Land Tenure Irrigation Agronomy (including crop water requirements) Irrigation and Drainage Engineering Marketing and Input Supply Rural Financial Services Roads and Other Infrastructure Development Institutional Capacity Assessment Organisation. 11. 2. 12. Detailed Project Cost Tables 15. 8. . 9. including details of expected improvements to operational hydrology. figures. be organised along similar lines to the main text to facilitate extraction of information. Implementation Plan (containing GANTT/critical path analysis charts) The list of annexes required for a rehabilitation project would be similar to those above. 5. 6. TABLES AND ANNEXES Appended to the report should be the maps. Mitigation Plan for Category B) 13. 4. Audit and Reporting This section should explain the arrangements necessary for establishing and keeping project-related accounts and their annual audit. Financial and Economic Analysis 14. Annex 6 should contain a detailed diagnosis of the existing system. FIGURES. MAPS. Annexes should. 1.Guidelines for Planning Irrigation and Drainage Investment Projects 152 E. tables and annexes needed to give the detailed background to the main text and to assist the appraisal team and project implementing agencies. to the extent possible. Annexes 1 to 9 should describe the existing situation. 3. but 4 to 9 should also describe proposals for improvements. Accounting. 7.
would cover the operation of the proposed project in detail and could include the following : 1. Operational Regulations (including investment selection criteria) Institutional Development Plan Action Plan for Rehabilitation and Transfer of Irrigation Schemes Cost Recovery Action Plan Environmental Action Plan Investment Costs and Disbursement Schedule Bidding Packages Implementation Plan (containing GANTT/critical path analysis charts) . 7. 6.Guidelines for Planning Irrigation and Drainage Investment Projects 153 The annexes required for a sectoral investment project. in addition to those required for background for such topics as those above. 3. 8. 5. 4. 2.
2 880.694.0 4.2 995.7 422.5 769.0 1. Sustainable Agriculture 2.9 8.095.8 417.0 103.4 4.4 240.0 127.0 12.709.641.6 1.2 26.797.9 323.1 94.352.5 1.0 433. Support Services Technology Transfer Research Subtotal Support Services E.694.3 385.6 1.5 158.4 1.6 4.7 16.8 12. Studies Total BASELINE COSTS Physical Contingencies Price Contingencies Tolaal PROJECT COSTS .1 7.1 560. Natural Resources Management 1.844.3 430.8 1.4 12.3 2.4 261.123.0 32.4 4.5 800. 1.0 12.2 937.765.0 4.1 853.8 5.Example: Project Cost Summari by Componet Local 3.3 262.308.127.726.135.7 432.7 94.7 10.9 1.3 239.409.2 33.948. SIGMA Subtotal Natural Resources Management B.860.6 1.8 108.1 400.3 2.693.2 274.0 300.648.098.0 401.2 14.2 2.8 2.4 4.7 32.0 2.372.100. 1.077.697.282. Training Subtotal Technical Assistance and Training D.2 1.295.0 6.7 45.7 116. Processing and production diversification 2.7 1.4 3.2 2.6 347.803.5 5.4 13.160.0 880. Poverty Alleviation Activities 1.5 21.297.352.7 779.972.4 3.419.9 39.4 37.069.217.7 1.6 393.2 12.3 221. Technical Assistance Services 2.4 4 5 16 25 18 9 9 2 4 2 30 3 4 3 (Pesos Million) Foreign Total Local Total (US$ ‘000) Foreign % Foreign Exchange % Total Base Costs 29 14 1 44 15 6 1 7 22 3 3 3 9 6 13 19 3 2 100 3 103 A.016.6 40.6 345.409.8 651.0 423.297.646.8 2.803. Institutional Strengthening 3. Economic Rural Infrastructure Rural Roads Rural Marketing Infrastructure Subtotal Economic Rural Infrastructure Subtotal Poverty Alleviation Activities C.057.8 1.081.9 4.728.844.089. Project Technical Unit F.5 1.2 975.7 1.6 4.233.844.4 94.0 347.6 875.668.535.0 6.697.2 9.0 1.7 316.3 100.100.4 6.668.4 1.3 118.5 14.3 662. Small Irrigation Schemes 3.0 1.8 167.7 712.470.0 31. Technical Assistance and Training 1.8 712.1 337.
2 2.2 7.8 256.8 769.952.7 837.5 2. Processing and production diversification 2.7 118.0 555.7 101.7 13.593.7 2.697.1 559.3 7.095.404.0 46.8 139.5 80.7 33.797.7 1.0 7.5 7.6 875.123.6 2.972.4 765.4 85.694.0 1.4 1.6 303.6 1.1 A.3 127.5 62.3 251.6 865.0 487.8 3.2 164.6 31.791.6 1.6 846.5 187.998. Poverty Alleviation Activities 1.2 2.8 394.9 4.0 561.0 880.1 109.1 400.0 2.8 475.2 8.6 254.127.0 1.7 712.1 108.6 771.3 210.709.7 82.4 204.6 167.1 220.3 2.4 1.9 3.828.9 137.7 206.6 157.9 1.569.073.0 7.2 3.9 84.406.3 1.844.6 617.0 80.2 543.1 158.4 54.9 526.6 1.9 601.5 366.100.3 133.0 423.8 76.169.1 80.4 25.4 155.663.8 1.0 6.1 62.217.6 158.0 1.5 433.4 927.8 32.0 213.4 305.4 332.561.1 532.7 475.9 326.098.9 215.803.7 316.5 800.3 199.381.7 981.0 343.3 452.9 3.5 145.967.938.7 13.9 242.954.717. Technical Assistance and Training 1.1 7.5 5.563.5 1.9 1.4 1.172.7 66.3 368.5 341.1 219.0 1.948.089.6 31.8 361.322.0 28.0 33.332.4 108.492.0 2.6 390.3 62.0 221.5 168.6 229.0 401.937.233.4 1.7 432.0 56.7 80. Economic Rural Infrastructure Rural Roads Rural Marketing Infrastructure Subtotal Economic Rural Infrastructure Subtotal Poverty Alleviation Activities C.2 194.8 330. Training Subtotal Technical Assistance and Training D.6 1.7 408.Example: Project Cost Summari and Year 1995 214.5 2.4 24.7 1.8 72.5 1.4 68.0 612.3 276.372.0 274.7 1.8 206.4 90.3 3.523.6 414.297.0 1.0 1.1 1.8 387.9 47.6 779.668.437.9 341.6 161.3 425.2 126.0 916.959.478.0 34. SIGMA Subtotal Natural Resources Management B.6 4.0 2.5 2.6 650.184.639.9 80.6 50.8 234.9 65.017.5 9.844.295. Support Services Technology Transfer Research Subtotal Support Services E.2 455.1 3.5 544. Small Irrigation Schemes 3.9 629.9 11.4 154.3 120. Sustainable Agriculture 2.4 1.6 31.7 144.0 80.4 31.0 158.925.4 120.081.027.4 4.8 144.3 12.4 55.1 644.7 826.0 366.3 320.5 7.1 183.4 68.6 31.362.0 523.5 2.161.3 865.2 523.8 1.9 62.9 798.933.7 99.021.7 31.0 92.1 2.497.9 1.5 14.860.185.6 506. Institutional Strengthening 3.0 1.9 365.0 215.2 Base Cost (Pesos Million) 1996 1997 1998 1999 Total 1995 1996 1999 Base Cost (US$ ‘000) 1997 1998 Total 9.5 347.726.924.4 584.2 119.1 174.4 2. Studies Total BASELINE COSTOS Physical Contingencies Total PROJECT COSTOS Taxes Foreign Exchange .421.3 334.8 52.158.6 90.016.5 131.4 174.8 87.874.7 345.2 461.9 179.352.049.646.4 619.8 1.5 24.4 62.8 1. Natural Resources Management 1.2 207.2 937.0 7.0 7.7 168.6 426.0 168.5 178.8 135.4 430.2 1. Project Technical Unit F.9 1.7 3.0 522.6 545.0 80.3 933.409.7 229.7 2.3 561.4 274.4 192.2 1.2 141.001.4 2.647.277. Technical Assistance Services 2.203.
1 701.6 1.3 12.0 75.4 4.2 37.2 4.9 3.057.7 11.0 805. Gasoline G.3 3.1 10.016.233.0 157.).6 7.3 385. Investment Costs A.6 1.4 57.0 401.682.693. Recurrent Costs 268.8 32.085.5 1. Supplies J.6 40. Other F.259.9 Mill.828.). Equipment B. .5 45.8 3.5 1.7 192.039.2 891.1 190.7 16.6 27.5 1.3 799.2 1.4 1.0 315.5 Mill. Research K.2 9.5 22.242. Operation & Maintenance O&M Works O&M Equipment Subtotal Operation & Maintenance B. Vehicles H.2 10.5 94. Technical Assistance (external) E.2 31.2 885.2 679.135.0 94.372.9 135.8 12 90 1 30 17 4 62.697.512.1 1. and forestry (US$ 2.3 3.0 560.1 4.1 679.9 343.5 10.2 975.4 537.8 190.217.8 30. pasture and livestock improvement (US$ 3.2 33.4 4.861.7 1.4 268.9 343.1 1.4 13.5 79.5 105. Travel Total Recurrent Costs Total BASELINE COSTOS Physical Contingencies Price Contingencies Total PROJECT COSTOS \a Includes: improved rainfed farming and on-farm erosion control (US$ 5. Technical Assistance (local) D.3 3. Training F.4 12.2 701.7 4.361.0 95.0 16.297. On-Farm Investment /a Total Investment Costs II.0 10.3 4.7 12.0 1.).360.0 9.3 799.0 433.213.694.039.5 22.0 1.7 192.098.127.9 405.360.5 76.9 40 1 3 4 3 2 4 6 2 2 1 12 100 3 103 A.3 2.682.4 7 (Pesos Million) Foreign Total Local Total (US$ ‘000) Foreign % Foreign Exchange 7 14 13 3 2 6 1 13 29 88 % Total Base Costs I.775.352. Staff E.7 2.6 899.4 12.4 805.5 2.7 32.2 511.6 30.297.Example: Project Cost Summari by Expenditure Category Local 823.2 221.1 352.3 41.0 800.0 1.3 31.697. Supplies D.0 1. Civil Works C.5 30.5 75.2 202.027.775.6 1.160.2 537.0 315.5 2. Off-farm Investment I.1 1.798.0 417. Studies G.525.7 12.727.7 25.4 57.6 18.388.694.352.726.7 Mill.0 355.500.8 6.2 487.2 487.4 28.2 25.9 135.0 240.807.308.3 3.259. Vehicles O & M C.8 316.3 37.
7 13.2 31.6 6.210.9 76.4 107.603.0 30.4 619.5 H.6 40.0 15.372.0 644.7 88.0 157.3 54.5 227.967.0 1.1 J.590. Supplies D.6 85.5 144.8 814.4 13.172.0 68.4 1.5 737.5 107.7 43.680.7 179.5 56.9 Mill.9 24.948.9 194.6 K.017.8 2.1 183.352.027.0 6.2 11.1 175.8 23.4 3.2 141.0 1.2 F.5 92.0 9.523.4 1.9 679.0 10. Technical Assistance (local) 336.0 145.1 C.8 234.9 4.0 174.2 2.8 30.5 69.6 1.2 25.1 6.0 443.6 76.0 899.2 44.5 92.184.5 192.2 E.3 799.8 330.7 1. Training 157.5 1.7 94.0 800.8 3.001.259.0 167.8 366.6 1.3 368.7 272. Operation & Maintenance O&M Works 17.127.277.233.6 22.536.7 Foreign Exchange 206.7 316.6 316.0 74.9 757.0 272.9 110.5 7.9 42.1 - A.1 59.0 75.5 2.9 158.5 2.1 6.9 II. Supplies 75.2 466.8 72.4 7. Staff - 43.0 0.924.5 76.9 368.3 53.2 28.7 1.4 28.098.512.4 1.0 576.8 94.998.1 Base Cost (Pesos Million) 1997 1998 1999 Total 1995 1999 Total Base Cost (US$ ‘000) 1996 1997 1998 Foreign Exchange % Amount 1995 I.2 1. Travel 36.0 1.073.5 433.1 227.2 24.9 2.959.0 111.7 7.388.937.0 Taxes 221.6 107.4 509.3 511.7 126.96.36.199 268.6 B.0 280.4 109.217.1 2.2 523.8 2.6 254.3 7.6 7.404.4 1.4 31. Recurrent Costs 37.4 2.288.3 4.7 D.3 3.4 Total Recurrent Costs 244.7 62.0 16.0 272.8 256.0 2.1 15.0 11.787.9 - 107.7 21.8 461.1 805. Other 34.682.1 168.5 355. Technical Assistance (external) 17.6 240.663.2 299.Example: Project Cost Summari and Year 1996 62.6 151.185.4 10.0 62.3 315.0 215.0 1.0 1.4 852.1 30.7 33.).7 O&M Equipment 5.016.9 7.1 4.8 11.0 174.1 189.3 291.8 19.0 105.2 423.9 149.726.7 68.1 184.406.3 62.3 37. Vehicles 37.8 601.).5 7.169.7 109.9 41. pasture and livestock improvement (US$ 3.7 15.9 3.5 2.4 233.7 168.5 95.9 19.0 466.420.6 1.694.7 Mill.0 15.647. On-Farm Investment /a 214.6 29.0 4.3 1.6 400.7 4.122.0 1.2 397.727. Off-farm Investment 12.0 856.4 150.3 60.4 107.0 332.0 120.013.7 1.6 7.3 69. Equipment 552.2 180.0 F.0 7.2 80. .8 Total Investment Costs 2.7 561.1 40.0 194.0 1.380.2 619.4 6.5 32.8 190.1 G.4 272.5 701.6 1.3 1.8 Total BASELINE COSTOS 2.6 1.253.3 86.1 19.1 B.8 32.569.8 3.2 543.4 537.3 74.4 57.3 59.7 109.5 107.0 2.5 2.1 5.697.8 E.2 487.8 769.).0 272.7 66.213.398.6 7.8 338.057.9 576.520.437.0 451.7 6.4 401. Civil Works 495.0 4.1 15.5 7.6 33. Research 650.925.0 3.9 206.9 \a Includes: improved rainfed farming and on-farm erosion control (US$ 5.360. and forestry (US$ 2.0 837.0 6.4 2.3 12.0 95.9 137.2 885.027.1 175.9 81.639.0 16.6 I.297.6 377.4 321.2 3.2 47.0 0.4 7.828.1 190.3 10.9 5.3 7.7 80.2 90.7 71.9 15. Studies 131.717.039.5 Mill.098.9 343.0 2.4 Physical Contingencies 101.8 6.2 873.3 Total PROJECT COSTOS 3.3 30.3 2.0 15.3 135.0 72.4 780.1 933.2 5. Gasoline G.5 24.0 225.775. Vehicles O & M C.6 43.4 308.4 184.0 591.5 1.2 455.874.0 1.144.5 30.3 276.492.3 425.828.5 45.4 Subtotal Operation & Maintenance 125. Investment Costs A.
7 192.3 70.2 1.1 0. Technical Assistance (local) D.6 86.7 192.2 0.8 135.4 1.213.6 41.8 4. Equipment 3.0 3. Plus Base Costs Price + Price Cont. on Cont.0 37.195.4 12.582.4 6.726.5 22.4 II.7 192.3 3.5 1.6 102.591.5 75.532.3 E.8 18.1 C.317.9 Mill.2 Total 712.3 1.2 8.5 0.0 5.9 12.4 805.8 139.8 168.9 48.6 13.2 86. Vehicles H.3 341. Other F.7 1.6 483.727.0 C. and forestry (US$ 2.3 53.1 352.9 111.6 268. Vehicles O & M 12.4 41.3 1.1 1.3 3. Investment Costs A.2 655.9 11. Operation & Maintenance O&M Works O&M Equipment Subtotal Operation & Maintenance B.4 1.9 139.2 0.2 537.5 Mill.5 268.694.7 703.4 10.3 69. Research K.2 1.5 16. pasture and livestock improvement (US$ 3.3 3.0 805.7 537.1 4.5 701.6 12.5 4. Duties & Taxes) Taxes Physical Cont.694.3 - 62.4 41.8 120. Duties & Exch.6 8.).6 4.8 10.0 135.5 355.5 18.5 337.387.682.3 4. Supplies D.7 65.9 135.7 102.5 Base Cost Local (Excl.1 3.5 11.0 1. Studies 94.4 725.9 63.694.4 396.2 421.4 948.3 1.2 35.6 1.6 1.9 192.6 1.697.0 39.5 70. Civil Works 202.9 62.0 5. Supplies J.6 31.1 396.1 1.1 336.6 1.7 10. On-Farm Investment /a Total Investment Costs 405.214.2 24.4 805.9 483.5 0. 885.6 8.2 316.6 30. . Local Currency For.609.7 11.3 762.694.1 50. Duties & Taxes) Taxes For.2 140.1 1.6 Physical Contingencies Local For.8 703.7 8.4 30.727.2 537.867.0 771.7 1.0 315.4 219.5 43.2 1.7 77.1 401.1 1.5 0.2 612.5 5.5 6.768.3 3.1 7.5 698. on Physical Base Costs Cont.1 63.3 3.7 767.3 3.4 A.7 3.9 11.8 G.697.7 11.Example: Breakdown of Expenditure Categories. Taxes) Taxes Total Total Incl.1 1.8 221.3 268.9 12.8 0.3 I. Local (Excl. Recurrent Costs 12.8 176.4 37.2 B.5 1.924.6 219.697.512.5 390.2 310.7 140.0 315.726. Exch.512. Exch.1 10.7 Mill. Travel Total Recurrent Costs 12.0 37.3 0. 62.5 3. Cont.3 35. Off-farm Investment I.).3 0.).2 43.5 5.5 13.7 53.697. Staff E.9 25.5 1.517. Gasoline G. Training F.5 75.682.2 10.0 Total 417.6 11.4 12.694.1 1.7 192.697.3 433.2 0.1 1.2 15.9 94.7 11.2 315. (Excl.1 113.7 316.5 701.6 75.3 387.0 6.2 48. Total 885. Technical Assistance (external) 37.1 102.7 1.4 \a Includes: improved rainfed farming and on-farm erosion control (US$ 5.8 22.514.2 214.2 316.2 221.3 3.5 355.391.2 35.127.3 25.0 315.3 3.2 315.2 0.1 22.3 1.4 769.0 113.1 401.213.
Supplies J.0 95.9 12.931.401.9 787.074.003.7 8.7 196.802.4 1.0 0. Duties & Taxes) Taxes Physical Cont.8 556.781.1 II.9 32.0 9.322.0 20.5 21.0 9.522.352.8 1.5 851.4 286.767.775.1 57.2 136.2 679.0 7.0 258.4 22. Vehicles 16.2 3.4 3.4 39.8 1.7 0.5 799.7 3.0 3.4 190.0 1.3 3.8 4.9 1.297.242.0 9.3 4.8 4.9 865.259.8 3.943.372.0 899. Plus Base Costs Price + Price Cont.217.5 E.3 0.5 556.4 1.1 4.3 0.3188.8.131.52 218.233.477.828.057.811.352.5 105.6 8.781.4 1.9 Mill.016.8 1. Vehicles O & M 30.6 0.2 304.5 C.0 98.2 488.1 4.6 25.0 1.2 31.9 354.550.9 3.8 1.4 47.8 89.5 29.9 218.5 1.3 28.5 76.8 1.259.6 3.8 354.029.).665.4 I.0 61.6 679.Example: Breakdown of Expenditure Categories.6 32.4 57. Total 2.3 89.6 10.7 447.5 29.2 89.775. Investment Costs A.2 4.5 1.9 12.7 28.9 29. Exch.297.027.5 136.2 14.9 542.9 160.2 25.9 Physical Contingencies Local For.5 891. 2.6 29.9 10.8 799. Travel Total Recurrent Costs 30. Staff E.2 1. Studies - 240.8 4.0 1.360. Exch.039.334.6 8.8 177.9 177. US$000 For. Equipment 7.9 8.5 2.5 \a Includes: improved rainfed farming and on-farm erosion control (US$ 5.837.066. and forestry (US$ 2.5 240.3 33.4 287. Operation & Maintenance O&M Works O&M Equipment Subtotal Operation & Maintenance B.1 0.352. .7 76.7 343. Civil Works 511.0 33.4 1.392.).4 1.2 105. on Physical Base Costs Cont.3 10.5 2.3 4.1 282.8 190.8 122.2 160.1 800.9 352.2 854.841.352.3 799.217. Cont.3 13.828.7 C.224.2 488.660.9 487.6 8.1 30.8 16.297.8 190.953.3 799. on Cont.6 1.4 20.7 30.5 352.4 4.5 Total 1.0 9.0 1.4 4.003.4 109.6 260.3 10.2 105.9 128.0 9.2 A.8 2.2 4.2 800.7 3.6 17.8 1.297.8 9.0 G.0 H.1 25.4 4.727.1 47.5 Mill.2 2.6 560.8 799. Training F.2 487.2 3. Off-farm Investment I.948.388. (Excl.4 57.5 17.5 10.297.5 25.4 4. On-Farm Investment /a Total Investment Costs 1.833.3 B. Recurrent Costs 32.8 1. pasture and livestock improvement (US$ 3. Research K.0 899. Gasoline G.1 425.0 95.6 157.8 122.098.2 1. Other F. Duties & Exch. Duties & Taxes) Taxes For.9 3. Supplies D.8 31.360.3 3.5 63.5 158.).3 26.3 1. 158.0 1. Taxes) Taxes Total Total Incl.0 989.0 560.5 343.3 1.8 94.5 679.4 Total 1. Technical Assistance (external) 94.372. Local (Excl. Technical Assistance (local) D.8 165.2 487.1 4.242.2 Base Cost Local (Excl.9 343.4 176.511.016.3 40.5 79.2 800.2 3.6 110.388.0 65.3 258.360.0 0.4 0.4 980.7 Mill.039.0 1.039.
and indicates the intended outcome.Guidelines for Planning Irrigation and Drainage Investment Projects 160 ANNEX 3: Other documentation THE PRELIMINARY PLANNING BRIEF As a prelude to the planning process and before commencing any studies or field work. However. The PPB is thus a document which the team leader uses mainly to pick the brains of others and to ensure that team members have a common starting point. explains how it is proposed to tackle them. a PPB may be little more than a listing of tasks which the team leader might in any case note informally before departure. existing irrigation development. both inside and outside the team. including social and environmental issues. The PPB is a short (3-5 page). potential and constraints. institutions. . to be dealt with. social and environmental issues. although it may refer briefly to many topics (eg the country and sector situation. past project lending experience. Background material. • an indication of outcomes which the team should aim for. and allows the sharing of ideas with others. The content of the PPB is likely to cover: • a brief background to the forthcoming field work. highlighting any initiatives or precedents relevant to the planning of the project: • a concise summary of the highest priority tasks or issues. needs to be highly selective and should be limited only to that which is strictly relevant. committing thoughts to paper encourages more focused and deeper thinking. or any second-best or fallback positions that could still be accepted if the ideal proves unattainable in practice. policy. The team leader should be both the author and the ultimate judge of what the PPB should contain. As such. It should relate directly to the tasks. or the current status of project elaboration). • the team leader’s views on how these should be addressed and the implications for staffing the team. ephemeral document covering the main topics or issues that the forthcoming work is expected to address. who should be stimulated to provide additional thoughts of their own and to guide the team towards relevant reference material. it will generally be found useful to produce a preliminary planning brief (PPB) as an aid to focusing the team’s thinking on the tasks that await it. questions or issues to which the team proposes to give priority. either as an ideal.
In some respects it resembles the back-to-office report (see below) which Investment Centre missions issue after their return to base.Guidelines for Planning Irrigation and Drainage Investment Projects 161 Draft terms-of-reference (TOR) for the work should be attached to the PPB. 1: This may be aided through bibliographic searches using FAO's AGRIS (International Information System for agricultural Sciences and Technology) or other computerised bibliographies. and does not represent an official position of either the government or the external assistance organisation: this is inevitable for a document written under time pressure in the field and without consultation with the organisation’s management. If resources allow. indicate the main features or outcomes as they appear at that time. and in particular the commitment of further resources to follow-up action. this should be prepared following a workshop arranged to reach consensus on the team’s findings and should reflect this consensus. in most cases it is advantageous for the team leader to make a brief visit to the concerned country prior to preparing the PPB. must be provisional. field programme. . In these cases the PPB is likely to be a more substantive document. sufficiently far in advance of the team’s departure to allow adjustment of objectives. and clearly stated as being subject to subsequent agreement. questions or issues which next require attention. As a result. and explain possible follow-up actions. but with two important differences: • An aide mémoire is the team’s own view. The aide mémoire should briefly summarize the stage that project planning or strategy formulation has reached. It will also be useful to seek comments on the PPB from the financing institution. discuss and leave with its counterpart institution an aide mémoire. or even its composition if this is considered necessary. and may serve as a useful basis for subsequent discussions with the government and financing institution. Such a visit can be helpful in generating up-to-date information. so that it can be discussed with other colleagues with relevant experience or knowledge. The PPB should be drafted as early as possible before the team commences work. Ideally. in giving government staff advance notice of the team’s objectives and in setting up administrative and logistical arrangements. THE AIDE MÉMOIRE Before leaving a country it is routine for an external planning team to prepare. views presented in the aide mémoire. The content of the TOR and the proposed allocation of work among team members should be fully consistent with the PPB. plans and maps1. list the topics. The PPB may also contain a list of background documentation.
to the extent that this is appropriate or possible. Where detailed terms of reference and schedules for further work have been prepared. but should be broadly similar to that of an aide mémoire. although slanted to address the information requirements of the Investment Centre management. or contracted for. It is not appropriate to include much background information in an aide mémoire since this should usually be known to the government.Guidelines for Planning Irrigation and Drainage Investment Projects 162 • An aide mémoire is targeted only at the government. and point to required decisions or follow-up commitments on the government side. The BTOR also informs other staff of work which may be relevant to their assignments. • A listing of the main questions. Steps to be taken to mobilize funding for follow-up work. The main points to cover in an aide mémoire are likely to be: • A brief recapitulation of the team’s terms of reference. should be listed. focusing mainly on those aspects which are the responsibility of the government and. the BTOR provides the written material on which the team’s debriefing is based. indicating the sort of outcome considered most likely to be endorsed by the prospective financing agency. organisational arrangements and likely benefits. • A clear indication of follow-up (what remains to be done. • Who the team worked with or met. what it did and an expression of thanks for courtesies extended to the planning team. BACK-TO-OFFICE REPORTS The back-to-office report (BTOR) is the vehicle through which Investment Centre teams present their broad findings to their own management and the concerned financing institution within a few days of their return to headquarters. Depending on the stage reached in subsectoral review or the planning of specific investments. . While still in draft. these should be attached as annexes to the aide mémoire. hence should always stress the specific information which the government and its affiliates need. if required. by whom. The content of the BTOR will vary according to the type of assignment. or an outline of a single possible project giving provisional costs. • A résumé (preferably no more than three single-spaced pages) of the current status of work. and serves to attract comments from a peer review. this may be a description or comparison of strategic options. by when) for the government and any other individuals or institutions with a role in. problems or issues which still have to be resolved before project planning can advance further. further planning. some alternative project concepts. where it went.
on specialised surveys. If no other reports are to be issued by the team. The degree of detail to be given in the terms-of-reference for such studies will depend. a BTOR may not have such a restriction on its length. the terms-of-reference will become the technical specification underpinning the legal agreement. or by someone else for example local or international consultants or a locally-contracted university team. main contacts. • issues still outstanding and the solutions proposed by the team. team composition. much can be achieved by verbal briefing before the team leaves the country. or it may summarise the justification for a specific proposed project. in particular. and written instructions may be kept brief. relationship to other activities. TERMS-OF-REFERENCE FOR FEASIBILITY AND OTHER STUDIES Institutions or individuals will often need to be contracted to work under the general guidance of government or its LDG. • summary of the team’s findings: as in the case of the aide mémoire. on whether they will be done by people with whom the project planning team will work directly. . If a legally binding contract is to be made. If the work concerned is simply an expansion of the tasks of a local team which an external team is assisting. to place the project in context. All BTORs should also include a brief section which explains how the mission has examined and addressed the possible social and environmental impact of the project. if a new group is to become involved and the individuals concerned are unfamiliar with the project or with the aims of the specific assignment. its timing and manpower requirements. mapping or engineering designs which provide the detailed supporting data needed to define investment options or specific projects. • the status of strategy formulation/project planning so far achieved and issues resolved by the team. more comprehensive terms-of-reference will be needed. noting its location. it may cover alternatives or concepts. • requirements for external technical assistance during project implementation. and need to be carefully worded. content should depend on the stage of strategy formulation or investment elaboration. BTORs should be succinct and generally not more than four pages in length. • the scope of follow-up work. duration.Guidelines for Planning Irrigation and Drainage Investment Projects 163 As a rule it should cover: • the purpose of the work undertaken. On the other hand. • brief national background information. however. components and approximate costs.
1: Further guidance on preparation of terms of reference may be found in The Investment Centre and Consulting Firms: A Guideline. when a planning team has reached the stage of reporting on project options and issues on which feedback is required.. IPBs are relatively short (10 to 15 pages). Rome (1983) . quantification of components. They may. issuesoriented. for example. scales of final presentations. benefits. are used as a convenient form of communication at any stage of investment planning. results to be generated. INTERIM OR INITIAL PROJECT BRIEFS Interim or Initial Project Briefs (IPBs). format. the ownership of equipment after completion of the studies. proposals to be elaborated. • particular points to receive attention in the work (e. etc.g. or during various stages of execution of a programme of work including feasibility studies. maps or designs. They summarise the status reached and the actions to be taken or decisions to be made to complete the planning process. training of national staff) and how they are to be approached. • deadlines for delivery. • the supporting services. costs. • manpower and other inputs or equipment to be used to complete the work. the elaboration of project ideas. as well as indications of the length of any textual material. be up-dated at various times.Guidelines for Planning Irrigation and Drainage Investment Projects 164 Comprehensive terms-of-reference for further studies1 are likely to cover the following aspects: • background and objectives: the main objectives or concept of the investments or specific project being planned and principal components. costs to be calculated. documentation. when progress reporting is necessary. with interim review or reporting dates if appropriate. FAO Investment Centre. • the disciplines. minimum qualifications or experience of key individuals to be involved. therefore. materials and facilities to be provided by the government. and so on. • the level of detail. the general means by which data should be collected and the expected level of accuracy. costed if appropriate. • contribution expected from the work to be done: how the work covered by the terms-of-reference is to contribute to the provision of base data. • specific information to be provided or gathered. operational documents. quantities to be estimated.
background information and scene-setting can usually be much truncated. similarly. costs. although the IPB will be much briefer. with the emphasis changing as work moves towards final project planning. and quicker to write. when it may be inconveniently late to take account of other views. and to focus on facts and issues as they are understood at the time. implementation arrangements. As a general rule. Rather than building the logical case for a project brick-by-brick for a wide audience. to fuller details of the project itself . Since a degree of prior knowledge can generally be assumed. if the planning team has reached an in-between stage in its work and is thinking of issuing a “preliminary” or “interim” report. As planning is nearing completion. Project briefs are usually aimed at keeping the responsible task managers or project controllers in the financing institution informed of progress. FAO Investment Centre. When prepared at the stage of completion of conceptualising and comparing the investment options. it should consider writing a project brief instead.Guidelines for Planning Irrigation and Drainage Investment Projects 165 The content of a project brief varies according to the stage of strategy formulation or project formulation. the IPB may be compared with the Identification Report of the conventional planning process. they therefore aim more to respond to the management question “Where have you got to?”. A suggested format is given in Investment Centre Technical Paper No 71. the focus should shift from a review of options and a summary of the next steps. which principally distinguishes the project brief from other planning documents.components. rather than the content. They are also intended to allow management to respond to the planning team’s question “Are we on the right track?”. 1: Investment Centre Technical Paper No 7: Guidelines for the Design of Agricultural Investment Projects. to be interim statements. but they should generally be briefer. However it is the intended audience and the tone. Rome (1993). Working papers or annexes attached to a project brief tend. At such a stage it may be a more cost-effective use of reporting time. as suggested in Part II. and financial and economic returns. Project briefs should involve the planning team in just as much careful thought as a final project document. which may be expanded and completed later. perhaps eventually becoming attachments to a final project document or dossier. . rather than leaving these to the end of the stage concerned.
. 1989. Rome) Brown. Byrnes. Hellmuth and Jean-Marc Boussard 1976. Paper prepared for the 1994 World Bank Water Resources Seminar. World Bank Technical Paper No 171. Bell. Burns. 1992. Irrigation in Sub-Saharan Africa: The Development of Public and Private Systems. Shawki and Guy Le Moigne 1990. Successful Small-Scale Irrigation in the Sahel. World Bank Technical Paper No 173. 1993. 1993). R. Kerry J. J-P 1994. Ellen P. (Johns Hopkins University Press) Bergmann. Baudelaire. Irrigated Rice Culture in Monsoon Asia: The Search for Effective Water Control Technology. Barghouti. Rome) Irrigation Investment Briefs. 771-789. Kutcher 1992.Guidelines for Planning Irrigation and Drainage Investment Projects 166 References and Bibliography Ahmad. . (FAO Investment Centre Division. Water Users’ Associations in World Bank-Assisted Irrigation Projects in Pakistan. Structured Irrigation Systems in India. V. Peter Hazell and Roger Slade 1982. 10 Collected Papers. Clive. Irrigation Planning with Environmental Considerations: A Case Study of Pakistan’s Indus Basin. Irrigation Water Management Briefs .100 Collected Papers. Guide to the Economic Evaluation of Irrigation Projects (Revised version) (OECD. Masood and Gary P. Project Evaluation in Regional Perspective. and Robert Nooter 1992. (FAO Investment Centre Division. World Development XXI (May. Paris) Branscheid. World Bank Technical Paper Number 123. World Bank Technical Paper No 166.
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