Section 7.

Terms of Reference

Development of an Irrigation Master Plan and Investment Framework for Kosovo

Introduction
The Government of Kosovo recognizes the fundamental importance of irrigation in the development
of the country’s agriculture. In line with the agricultural and water strategies, the country realizes the
need for both on-farm and larger scale investments in the irrigation sector as well as some structural
reforms to support a thriving irrigated agriculture sector. Agriculture is an important contributor to
GDP (14% in 2014). 62% of the country’s population lives in rural areas and depends, directly or
indirectly, on agriculture for livelihoods. Agriculture is the largest private employer and represents
35% of total employment. It is the engine of growth for the economy in the short- to medium term.
However, the sector faces several challenges that prevent it from meeting its productive potential and
Kosovo is the largest importer of food in Europe.

Strong potential for the country’s socio-economic agenda is to be found in a more diverse and more
commercialized agriculture. Kosovo has strong competitive potential, can gain much from import
substitution, as well as boost exports (especially to EU and CEFTA countries). Agricultural
intensification can create jobs, improve rural incomes, provide economic opportunities for women and
especially also for youth, both in production as well as in the value chain. Irrigation development is
critical for this agenda in many different ways:
 increasing productivity / volume of production
 Improving product quality
 Extending the growing season
 Stabilizing production (against weather shocks)
 Increasing commercialization and diversification
 Longer term climate change adaption
 Contribute (with small scale storage and multipurpose development) to broader regional rural
development

The development and sustainable management of available potential hectarage requires logical
planning and investment to maximize economic returns and returns to investments for farmers. There
have been some studies conducted in the country on irrigation development interventions (notably
Lepenc Dam, Radoniqi Expansion, small scale storage reservoirs)and there have been smaller
initiatives and autonomous growth, but they have been inadequate in scope and territorial coverage to
constitute a comprehensive irrigation planning and investment framework. The absence of an
irrigation master plan and investment framework has led government to support isolated feasibility
studies for specific irrigation investments resulting into delays in developing irrigation; sub-optimal
investment decisions; and possibly blind spots for alternative forms of support to the irrigation sector.
Also, a project approach does not allow for a robust sector financing, management and monitoring
plan.

Finally, irrigation development needs to be considered within the broader framework of water
resources management. There are many competitive uses of water (consumptive and non-
consumptive) and there are water quality considerations for irrigation water use. Kosovo has relatively
limited water resource availability, comparatively low water storage and water use efficiency, caused

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by a maintenance backlog. Taking a forward looking approach, the masterplan and investment
framework can help the country over time align itself with principal EU frameworks for water
resources and agriculture.
Kosovo has expressed the intention to accede to the European Union. Working towards this ambitious
goal will take time. Several of the legal and regulatory systems embedded in the EU acquis and its
Directives, have already been transposed into Kosovan legislation. For irrigation, in particular the
frameworks pertaining to agriculture and rural development, and water resources, are most relevant.
This process is valuable, as it gives access to the country of experiences and administrative models
that have proven their value as frameworks for sustainable economic growth. At the same time, these
models should not be adopted wholesale but will benefit from piloting, adjustment and fine-tuning to
accommodate the specific Kosovan conditions. With irrigated agriculture at the crossroads of several
important EU policies, the Irrigation Master Plan is also aiming to assist the country with creating the
space to experiment with the EU Directives in the context of the developing national legislative
frameworks.

Background
1. Irrigation.
Kosovo has several decades of experience with technical centralized irrigation in the Yugoslav period,
but the hilly terrain has allowed local farmers to employ small-scale gravity irrigation for a much
longer time. The government possesses several strategic and policy documents, and studies, pertaining
to agriculture, irrigation and water resources management, that together address different elements of
an Irrigation Strategy. However, for a comprehensive and updated Strategy and Action Plan, further
study and consultation at technical and policy levels will be needed for which this study specifically
will develop the foundation and framework.

Current approaches to irrigation in the country still are fragmented. They lack an overarching coherent
vision, analysis of options and trade-offs, and a set of realistic priorities with regard to objectives,
administrative interventions, and investments. Yet, agriculture is central to the country’s economy.
The sector contributes at least 14% to GDP, represents 35% of employment, and is the country’s
largest private-sector employer. Notwithstanding, Kosovo is, comparatively, the largest importer of
food in Europe. Better and expanded irrigation would boost, notably, horticulture, for which the
country has a strong comparative advantage in the region. Depending on the region, farmers are
growing a variety of vegetables, many nowadays in greenhouses, as well as beans, potatoes, alfalfa
and fruits (apples, grapes, etc.); grains and maize are also grown in several regions, often in the form
of winter wheat and sometimes as fodder to supply local livestock operations. Well targeted and
reliable irrigation services would increase yields and productivity, and in particular, help produce
high-value crops in niche markets. Given that precipitation is concentrated in spring time, rain-fed
agriculture is not very productive. Importantly, Kosovo is already experiencing changes in climate,
which will render it gradually even more dependent on irrigation.

2. Water resources situation

With plans to expand water use for irrigation but also for municipal use and hydropower, river basin
management plans are becoming important tools for water management in each of Kosovo’s four river
basins. The DriniiBardhe, is the largest basin and drains the western portion, flowing into Albania. It
features a medium-sized reservoir that supplies the town of Radoniqi with drinking water, as well as
the Radoniqi-Dukagjini Public Water Co. that supplies irrigation water. The Iber drains the northern
quarter of the country and is fed by the large Gazivoda reservoir that is located on the border with
Serbia. It supplies, via the Iber Canal, the city of Prishtina and several other towns with municipal
water, several minor irrigated areas, and the large power plants with cooling water. The return flows
go back into the Iber river bed and exit to Serbia and the Danube river. The Morava e
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

Bincesriverdrains the eastern slopes and comprises the smallest water discharge, discharging to the
east into Serbia and the Danube. The Lepenci river drains the southern mountains and flows southward
into FYR Macedonia (Vardar river) and henceforth into Greece. The country counts five sizeable
reservoirs of 60-40 years of age, in need of upgrading and modern safety measures. Groundwater
availability and recharge across the country is not well described. It is assumed to be of modest
significance on the higher-lying central and eastern plains, but aquifers are of more significance on the
western lower-lying plain of the Drini. In that region, some farmers report pumping irrigation water
from wells that are about 6m deep, however, their financial viability seems less robust. On the other
hand, in certain areas (with high-value crops that consume less water) conjunctive surface and
groundwater may be commercially attractive.

As Kosovo is in the process to prepare for accession to the European Union, it will need to align its
national policies with the environmental EU acquis. Part of the transposition of regulatory systems for
water resource management is on-going. The preparation of river basin management plans (RBMPs),
however, a key element of the Water Framework Directive (WFD), is still to begin. The acquis
requires such plans are drafted and agreed upon among the stakeholders. The primary focus of the
plans is to determine the ecological status of the different water bodies, and the measures to prevent
status deterioration due to unsustainable water abstraction, pollution or hydromorphological changes.
The WFD is complemented with other Directives that are relevant for irrigation, such as the Nitrate
Directive which regulates nutrient runoff from fertilized fields. With irrigated agriculture likely to
become a major water user, and water polluter, RBMPs will become important planning and
management platforms that will define the boundaries for irrigation expansion. As Kosovo’s waters
are all flowing outward into neighboring countries, these riparian countries will need to be notified of
any proposed irrigation expansion.

The first basin plan development, on the DriniiBardhe, is being started with support from SIDA.
SECO is considering to fund preparation of the RBMP of the Morava e Binces. The preparation of the
plan for the Lepenci may be funded by EBRD. The plans will also need to cover the groundwater
situation and its abstraction and recharge.

3. Irrigation experience and existing institutional structures

Kosovo has the advantage that it has a variety of field-based experiences of which some could be
scaled up. The Radoniqi-Dukagjini Regional Irrigation Co. (Public Water Co.) in the south-west of the
country is dedicated to supplying farmers with water. It reports consistent and growing demand from
the about 7000 farmers it currently supplies; in 2016, 97% of water fees were duly collected. Although
this is very encouraging, the water fee is not high enough to cover all operational and rehabilitation
costs. The fee is currently set at Euro 136/ha.yr whereas full cost recovery could require fees in the
order of magnitude of Euro 1000/ha. The capacity of its Radoniqi reservoir would allow doubling the
current irrigated area. Farmers increasingly use greenhouses to grow specialty crops, and aim for
higher yields and double cropping. Many farmers have small holdings of 1-2 ha, although a growing
number is working 5-15 ha by leasing additional land. Concern exists that this system may be
designed expensively by providing upon-demand water supply to each farmer irrespective of water use
by other farmers. The Iber-Lepenci Public Water Co. conveys and distributes bulk water from the
Gazivoda reservoir in the north of the country and operates the Iber Canal between the reservoir and
Prishtina. Several farms abstract water for irrigation, but this is a minor business activity for the
company. The company reports limited appetite among farmers to buy its water, but the reasons for
this are not clear and may be multifarious. The DriniiBardhe Public Water Co.in the north-west of the
country has the specific challenge that its planned reservoir has never been constructed, and that it
cannot provide a reliable irrigation service in June-July, although demand is reported to be high. Its
infrastructure is in dire need of rehabilitation. It is reported to be in liquidation.

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The Ministry of Agriculture, Forestry and Rural Development (MAFRD) reports that many farmers
use wells to irrigate (part of) their plots, however, groundwater pumping costs are considered very
high, typically up to Euro 500/ha.yr. In many places, small groups of farmers cooperate to finance
minor diversions on rivers to bring water to their fields (at an estimated cost of about Euro 100-
150/ha.yr). The Ministry also has prepared a proposal for about 70 small reservoirs in the south of the
country (2-3 per municipality) that would be able to respond flexibly to farmers’ needs and that can be
operated and maintained locally. The Ministry is keen to scale up successful experiences with
irrigation across the country, in small-scale arrangements as well as larger-scale technical
arrangements.
The country has little experience with Water User (Farmer/Irrigator) Associations (WUAs) as local
groups that use and manage the irrigation water and infrastructure, and could be assigned with the task
of operation, maintenance and cost recovery. On the other hand, the experience with a technical
service organization such as the Radoniqi-Dukagjini Corp. has been positive. Still, this positive
experience may be conditional upon the existence of a large and well-functioning technical scheme in
which farmers and company have a shared history. The experience with the other companies is less
compelling. The aim of the Master Plan is to explore realistic and workable options for the
institutional arrangements for irrigation service delivery for different typologies of landscape, farm
structures, and water provision.
Little is known about the role of female farmers in irrigated agriculture and the barriers and
opportunities future investments in irrigated agriculture and agricultural commercialization policies
can bring to enhance their economic opportunities, access to services, assets and markets. The same
holds true for other population segments, such as youth, for whom irrigated agriculture may bring
increasingly opportunities for employment and business development. The Bank will carry out a rapid
qualitative diagnostic to uncover the key barriers and opportunities for female and youth farmers in
irrigated agriculture and will make recommendations to the consultant to take on board these
recommendations in the development of a socially inclusive Master Plan.

4. Agriculture Sector in Kosovo as related to irrigation

Irrigation of agricultural land is very important part of agricultural production and it has a direct
impact on increased production levels of agricultural crops. Taking into account the fact that the
estimated capacity per capita is about 1,600 m3 of water annually, Kosovo has adequate water reserves
although distribution of water resources continues to be unequal.
In Kosovo, irrigation is implemented in various forms ranging from formal irrigation organized by
irrigation companies and informal irrigation and disorganized or individual irrigation from various
water sources like rivers, wells, etc. The collected data by the municipal departments of agriculture,
within the respective municipalities it is estimated that in 2015, irrigation was carried out in two
different forms: formal irrigation and non-formal irrigation on around 23.122 ha.
It is estimated that from formal irrigation through companies are irrigated a total of 16.176 ha of
agricultural land, 4.106 ha from rivers and 2,841 ha from wells. The figures are presented in the
following table according to municipalities, irrigation source, irrigated crops and area expressed in
hectares. Based on the data reported by municipal departments, some municipalities have reported
having no area under irrigation as Dragash, Kamenica, Novo Brdo, Skenderaj, Malisheva, etc. Most of
the crops irrigated are corn, fruit and vegetables, without excluding other sectors mentioned in the
table.
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

Irrigation of agricultural land by municipalities for year 2015

Source: Department of Agriculture Policy and Trade, MAFRD.

5. Strategies, legal frameworks and EU linkages

Kosovo disposes of agricultural strategies of fairly recent signature, but lacks a coherent conceptual
framework, policy and an operational road map that allow the country to simultaneously boost
agricultural employment and productivity in a regional environment with shifting market dynamics
and competition, move forward on protection and sustainable use of its water resources, and align with
the EU acquis on water resources management, and agricultural productivity and rural development.

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The study under this TOR will produce a document that would help meet these objectives more
effectively.
At the same time, the EU accession is supported by grant funding (Instrument for Pre-Accession
[IPA], West Balkan Investment Framework [WBIF], TAIEX, etc.) to finance TA, studies, policy
advice and investments. However, to qualify, applications must meetspecific requirements and be
prioritized by the government.

Objective of the Assignment

The objective of the consultancy is to develop an irrigation master plan and investment framework to
support investments in irrigation, based on:
(i) A diagnosis of current irrigation and an assessment of irrigation potential,
disaggregated by basin and irrigation typology;
(ii) An analysis of the national and regional markets to which the produce would be
supplied, and identification of the potential comparative advantage of Kosovo
irrigated agriculture;
(iii) Critical priorities for improving the irrigation sector, of legal, regulatory,
administrative and policy nature; and an assessment of the impacts on disadvantaged
groups such as female and youth farmers
(iv) An analysis of the institutional arrangements to facilitate local water
user/farmer/irrigator associations, and/or company-based service delivery, to carry out
operational, maintenance and cost recovery tasks;
(v) A prioritization framework for measures, from the perspective of agricultural
productivity and water resources management; and economic development and
employment opportunities
(vi) A time-bound investment framework with financing plan
(vii) Feasibility studies and measures for immediate pipeline program.

This “Irrigation Master Plan and Investment Framework” (“the Plan”) shall be strategic, taking a fresh
look at the role of the irrigation sector within the economy and society. It should be comprehensive,
looking at the different aspects of irrigation, from planning, management, operation, maintenance,
investment financing, governance, multiple use systems. It will be national, looking at hydrological,
regional, topographic, cultural and climatic differences. It will be aligned with broader sector
strategies and build on existing initiatives where relevant.
It will be important to recognize the multi-pronged nature of irrigation in Kosovo. First and foremost
there is the need to revitalize large scale irrigation under the three irrigation companies, covering the
largest currently equipped area with varying degrees of success. Secondly, there is autonomous growth
of individual commercial irrigation (largely pump-based irrigation in greenhouses). Thirdly there are
existing and suggested multi-purpose small scale reservoirs for amongst others irrigation. Fourthly,
there is a need to re-assess past and present plans for large scale capital investments, and finally
measures to improve resilience of rainfed agriculture.
The Plan should set out specific ways in which improved irrigation development and management can
deliver higher incomes tofarmers, as well as accelerate economic growth. The Plan shall be technically
feasible, economically and financially justified, fiscally sustainable, environmentally and climate
responsive, socially inclusive, stakeholder supported, institutionally focused, specific and time-bound
and flexible to changing circumstances. It shall include specific programs and physical projects to be
implemented.
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The specific objectives include:

 Support a process of defining strategic priorities for improving the irrigation sector in terms of
alignment with agriculture growth potential, improving resource utilization (labor, water,
economic environmental), water delivery service, EU accession and qualification for EU grant
funding, and institutional and financial sustainability.
 To diagnose performance and verify potential for irrigation development and management
improvement opportunities in order to enable increased understanding for priorities of such
development; and their impact on different population groups such as females and youth.
 To map out all potential areas for irrigation and establish the linkages that could enhance the
profitability of the proposed irrigation interventions;
 To clarify the boundary conditions and conditionalities for irrigation development within the
scope of sustainable management of surface and groundwater resources, as stipulated by the
WFD and related EU Directives; and, conversely, contribute to the articulation of the RBMPs.
 To identify realistic institutional arrangements for the operation, management and cost
recovery (fee collection and management) of local irrigation schemes, such as through
irrigation service companies, WUAs, municipal utilities, etc.
 To develop prioritized irrigation development framework which will include time bound
action plan and strategies for use by government, as well as private sector and non-state actors.
 To prepare pipeline with pre-feasibility studies and program of measures to be implemented

Methodology
In carrying out the assignment, the consultant is expected to use appropriate methodologies which
shall include but not limited to the following:
 Place irrigation within an overall context of the agriculture economy, society and
sustainable resources management. There are opportunity costs and resource trade-offs
to irrigation development and therefore the plan should present the strategic place for the
irrigation sector, taking into account how – through it linkages with agricultural economy -
can enhance economic and employment opportunities for youth and women.
 Approach the technical task with the aim to optimize the alignment with the EU
acquiswith respect to, notably but not exclusively, agricultural, rural development and
water resources management. The Plan would also aim to propose measures that qualify
for EU IPA and WBIF funding of TA activities, studies, policy advice and investment.
 Optimize alignment with the sustainable management of the surface and groundwater
resources in line with the WFD and related EU Directives, and identify irrigation
development and management scenarios that could imperil or enhance water management
strategies.
 Ensure that the Plan includesInventory Development, whichidentifies potential irrigable
lands, assembles available data, field survey and investigation, utilizing Geographic
Information System (GIS) techniques. This geodatabase should be linked to land use
planning and other relevant databases in Kosovo.
 Accounting for Climate change. The effect of climate change on land use, water
resources and agricultural activities should be accounted for, based on regional climate
assessments, and implications shall be embedded in strategies such as identifying long term
trends in perennial rivers and streams, rainfall variation, starting of cropping season, crop
water requirements, etc.

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 Provide transparent prioritization mechanisms, based on multicriteria assessments,

which should be aligned with the strategic objectives and agreed with stakeholders, as the
basis for current and future selection of specific investments in the different business lines
based on a clear typology of irrigation.
 Ensuring that the Investment and Financing Plan is stakeholder- and market-led.
This means avoiding planning based simply on hydro-meteorological and biophysical
potential, and existing transport links. It will require active engagement with stakeholders,
in which they are educated about possibilities, and their desires are made central to the
Plan. This engagement process needs to be socially inclusive.The consultant will present a
plan for structured stakeholder consultation to build consensus around each sub-
deliverable. It will also involve helping the Government to develop flexible approaches
that can respond to emerging needs of entrepreneurial commercial farmers, as well as
cross-sector approaches to ensure that storage, roads, power, and supply-chain linkages
accompany irrigation investment where needed and justified. It will also involve
development of appropriate public-private partnership and cost-recovery strategies.
 Cost-benefit justification. This involves ensuring that the benefits of irrigation investment
are clearly identified, and that these benefits exceed the costs. The plan should seek
optimized levels of investments directed at increasing returns to farmers by significant
margins above the cost of the investment.
 Institutionalsustainability focus. This involves a recognition that engineering-driven
provision of infrastructure often fails to deliver the intended benefits because of
institutional failures. The Plan must include recommendations for institutional
development to ensure that suitable irrigation programs and projects are: identified;
appraised properly; developed in cost-effective ways; and crucially, operated and
maintained in a way that provides the intended benefits to farmers. Importantly, the Plan
must outline realistic pathways to develop and empower institutions able to operate and
maintain the infrastructure, and ensure long-term financial sustainability. Furthermore, the
Plan should propose realistic institutional arrangements to ensure operation (including,
where applicable, rotation-based water access rights), maintenance and cost recovery,
making optimum use of (i) local water user associations, and/or company-based service
delivery, and (ii) commitment at national (ministry) and local-government level for
extension and training services for the benefit of the water users, as well as for
rehabilitation and major repairs. The Plan should base its recommendationon the
comparative analysis of experiences at operational and regulatory levels in Kosovo and in
other Balkan countries (especially Croatia, Bosnia and Herzegovina, and Bulgaria).
 Financing Strategy. This recognizes that irrigation modernization, improving service
delivery and expansion comes at a financial cost for both capital investment and operating
cost. Depending on the type of irrigation, this could be privately financed, or when publicly
financed through taxes, irrigation service fees or through grants and loans. The Plan should
be fiscally sustainable and provide the right mix of private and public finance. This should
be based on sound principles for longer term investment and cost/risk sharing by
government and farmers, differentiated in the different business lines.

Scope of Work
Stage I: Strategic Direction Setting
This task shall upfront aim to determine the strategic objectives for the irrigation sector in Kosovo.
The consultant shall facilitate stakeholder centered decisionon the objective, principles and strategy for
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

the development of both private and public irrigation in Kosovo as the sub-sector evolves in response
to domestic and regional demand for agricultural products.
It shall do so through an analysis of the key strengths, weaknesses, opportunities and threats for the
irrigated agriculture sector in Kosovo and thus propose the key strategic principles and priorities upon
which the masterplan will be built.
This initial SWOT analysis shall be discussed with a variety of stakeholders, and shall allow the
consultant to identify the government’s key objectives, the opportunities, issues, and constraints
relevant to achieving those objectives, in so far as they can be ascertained from an initial review.
Where appropriate, the consultant shall collect relevant information on successful irrigation
arrangements in Kosovo and in other countries in the Balkan (notably, Croatia, Bulgaria and Bosnia
and Herzegovina).
In objective setting, this process shall answer questions, such as:
 What can irrigated agriculture contribute to the rural and national economy (how best to
integrate the water and agriculture agendas)?
 What are the costs of not realizing the advantages of irrigated production (food imports,
foreign exchange impacts)?
 How to place irrigation development in the context of a thinning rural economy and how to
address commercial irrigation development vs. social protection aspects of agriculture
production? Or in other words how to square the private and public good aspects of irrigation
in a diversified strategy?
 Who are the direct and indirect beneficiaries and how to make this relevant to all methods of
irrigation and complementary to rain-fed farming systems?
 How to reverse current trend of uneven performance of management, operation and
maintenance of public irrigation schemes?
 Who should be engaged in the strategy making discussion and in its implementation and how
will this be implemented?
 What are options to select, or make develop, preferred institutional arrangements for local
water user/ farmer associations, and/or company-based service delivery, to operate, maintain
and pay for the infrastructure.
 etc
The strategy shall then set out principles that set the boundary conditions. At the first roundtable
discussion on the master plan some principles were already presented. These need to be complemented
and operationalized. The master plan should be:
• Technically feasible
• Optimizing beneficial use of water in the agricultural sector
• Economically and financially justified (macro- and micro)
• fiscally sustainable
• environmentally (and climate risk) responsive, viewed within the inter-sectoral management at
basin level.
• socially inclusive, with a focus on expanding opportunities for youth and women
• stakeholder supported

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• Institutionally focused (realistic and sustainable)

• Integrated with policy, planning and ministry/agency budget setting
• Specific and time-bound
• Flexible to adapt to changing circumstances
The consultant shall propose appropriate tools for defining, discussing and agreeing on the objectives,
principles and broad implementation strategies with a range of stakeholders and shall present these in
a report that forms the basis for future phases. At the same time, this initial report shall be understood
to be flexible as information obtained and lessons learnt in subsequent phases may require an update
of the initial strategic direction.
The strategy shall also identify possible models for support to water in agriculture and propose
different business lines/approaches to irrigation. Irrigation shall be approached in its broader concept,
not as physical schemes. Existing and potential models in Kosovo have been discussed by the client
and include among others (and the consultant should seek to further expand and refine). These are not
mutually exclusive, but represent different models for the future and for government support that can
exist in parallel:
 Modernizing service delivery in the three large irrigation companies, improve their rentability
and maximize agricultural productivity in these areas – reclaim agricultural territory for high
value production within these perimeters and expand as reasonable. Set more realistic pricing,
regulated, and improve monitoring.
 Promote private investment in on-farm irrigation improvements for specialized value chains
(drip/sprinkler/storage/greenhouses), either within schemes or using groundwater. Improve
support services for irrigation (supply, consulting, maintenance, knowledge products) and
support through grants/subsidies (in horticulture, most likely near markets, outside large
schemes)
 Integrated rural development strategies where water/irrigation is combined with rural/eco
tourism, local farm production, watershed management, small scale storage, environmental
conservation (for instance integrated water services and agriculture revitalization in areas of
agricultural/environmental/cultural heritage in hills where multipurpose storage can support
multiple functions)
 Develop new areas in high potential agriculture with new large scale storage, in combination
with hydropower, etc. This will be very site specific and will depend on feasibility as assessed
during this assignment.
 Multiple use systems for drinking water and irrigation through shared small scale
infrastructure, particularly in peri-urban areas.

Stage II: Situation Analysis:

II.A Review of the current strategies, plans, designs, institutional performance and public
expenditure:
This stage may be implemented as part of stage I or may be seen as a more in-depth diagnostic review.
The situation analysis shall include a review of the following:
 Agricultural trends and priorities in Kosovo and the region;
 Experiences with technical irrigated agriculture in Kosovo and Balkan countries, at the
levels of field-based institutional arrangements, and regulatory frameworks;
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

 What the Government is aiming to achieve through irrigation; where Government intends
to target irrigation; how Government intends to implement irrigation;
 Principal Government mechanisms and instruments (legal frameworks, strategies, plans
etc.);
 Current institutional responsibility for irrigation, including key institutional linkages and
interfaces;
 Description of irrigation within partner, regional and EU strategies, and known investment
plans of private sector.
 Existing material on the potential for irrigation in Kosovo, in particular existing past and
current development plans
 National development priorities as presented in national strategies such as the draft
agricultural and water strategies
 Specific development priorities such as formal women participation in the labor force and
youth employment and economic opportunities
 Typology of Irrigation Systems and its occurrence, performance and trends (following
FAO AQUASTAT definitions or other if more useful for sector planning in the Kosovo
context).
 Institutional arrangements for (in State Owned Enterprises and outside):
– Studies and design;
– Financing;
– Construction;
– Operation &Maintenance;
– Training of farmers/irrigators and their local associations, and government technicians;
– Extension services;
– Irrigation equipment suppliers;
 Land governance under irrigation looking at:
– Land tenure;
– Land administration
 Financial arrangements for irrigation:
– Funding sources and levels of investments (expenditure trends);
 Contribution of irrigation to national economic growth and development:
– GDP;
– Job creation;
– Industry;
– Export earnings;
– Food Security and Nutrition status;
– Household income;

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– SMEs
– Effect on environment
 Given the importance of the three public owned companies in the irrigation agenda
(Radoniqi-Dukagjini, Iber-Lepenc, Drini e Bardhe), the inventory shall include an analysis
of experiences within each of the three schemes to-date, and identify the lessons learned
specifically looking into the service delivery and utilization, institutional capacities,
financial sustainability, technological and managerial upgrading needs, and other
prerequisites for success. This should provide a performance benchmark for future
reference for that specific scheme, and allow cross-learning and development of improved
service delivery models. These stocktaking exercises shall be based on performance
metrics for the schemes and their management institutions, on detailed interviews with
their irrigation managers, on focus group discussions with their clients and could-be-
clients. Specifically, a framework shall be developed for performance management,
learning lessons from similar assessments for the Regional Water Companies in Kosovo,
already in place.
Stage II.B: Knowledge base (Physical baseline and identification of irrigation potential)
The consultant shall develop the knowledge base that shall be practical in outlining opportunities and
constraints on irrigation potential; determine indicative investment levels for a well prioritized
irrigation development plan; make appropriate strategic recommendations on irrigation potential; and
conduct stakeholder consultations on irrigation potential.
The knowledge base should provide an integrated and synoptic view of the the country including
development and management opportunities and risks viewed from an economic, social and
environmental perspectives. The knowledge base will incorporate and build upon knowledge products
from previous and ongoing studies where available (Lepenc feasibility; Radoniqi Expansion, small
dams report and others), but shall be built up from scratch using uniform methodology to allow cross
regional comparison. The knowledge base should fully support the development and application of
analytical tools and decision-support systems. The information system thus created should become the
focal point and repository of decision making in the irrigation sector.
The knowledge base activities outlined below are intended to convey the general scope of both the
knowledge base and the consultant’s investigations. In some cases areas have already been covered by
others and the consultant need only review them for adequacy and technical soundness. In others the
consultant will be extending the current work and activities to encompass the knowledge needed to
support basin planning and water management. The consultant is therefore expected to use judgment
in allocation the limited time and resources available to the various investigations expressed or implied
below.
a) Design the knowledge base as an inventory data base structure, which should be designed such
that the knowledge base can be used both in a stand-alone mode (e.g. for pre-customized and
interactive (including web-based) knowledge base queries and for tabular, graphical, schematic or
map-based visualization of conditions and results) and in conjunction with various models (e.g. for
linkage to water resources planning or further economic simulation)
b) Populate the knowledge base, where possible with GIS-based spatial data and information (linking
with available spatial data base in MAFRD, MESP and others). To achieve this, the consultant
will (i) (ii) Undertake investigations and studies; (iii) collect data from various relevant
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

offices/institutions (facilitated by client counterparts); (iv) develop and collate existing

information on the implications of various projects on a unit basis (e.g. unit costs, employment
generation, unit benefits, etc.); (v); develop GIS layers and acquire existing ones from various
agencies; (vi) supplement existing data as appropriate with remote sensing coverage and with data
sets from international sources including for example ESA, NASA, IWMI, global datasets,
IRI,FAO, WRI etc.
c) Develop basic knowledge products, considered to be valuable tools for informing stakeholders and
building support for the planning process, the resulting plans and their implementation. These will
be an irrigation map (or brief atlas); an annotated bibliography and repository of relevant existing
reports and data; metadata on database/GIS data developed.
d) Based on existingwater resources assessments where possible and on acceptable rainfall run-off
modeling and climate projections, identify and assess the water resources (rainfall, surface, ground
water) in order to indicate hydro-meteorological potential in Kosovo. The water resources
assessment shall take into account covering the surface and ground water resources in Kosovo
considering temporal and spatial distribution and, accessibility to the water resource.
e) Using the knowledge base and with use of a combination of spatial analysis tools, identify and
assess potential irrigable lands based on natural conditions, land use and ownership, water
resources, and socio-economic and financial issues. The criteria of identifying the irrigable areas
shall be clear considering technical, economical, environmental and socio economical aspects;
f) Determine irrigation potential with/without major bulk water storage; determine irrigation
potential both for direct river or groundwater abstractions, as well as irrigation development
requiring large scale distribution networks or bulk water storage, based on modeled potential yield
and based on known potential dam locations or determined by proxy. Determine potential for
private irrigation development.
g) Physically verify potential land and corresponding water resources for irrigation development
opportunities (sample checks for ground-truthing, across different agro-ecological zones and types
of irrigation, incorporating the potentially most promising areas). This shall explicitly include a
review of the feasibility of the currently proposed schemes such as Radoniqi, Lepenc, small dams
report by MAFRDin addition to other potential areas identified in this analysis.
h) Develop classification system for irrigation potential and present comprehensive list of possible
irrigation projects or measures to support private led growth (which will also be area based);
i) Map out all identified potential irrigable lands with associated irrigation technologies in the
knowledge base, accessible for public query;
Stage III: Investment planning framework development
III.A: Reconfirmation of strategic objectives and priorities of the masterplan
Based on the review of irrigation potential under stage II, the consultant shall re-assess the strategic
objectives, and now operationalize them into a planning framework. The consultant will determine
synergies/linkages amongst different strategic objectives from other sectors. The consultant will
present the findings of Stage II along with the proposed investment priority setting based on:

(i) The duration of the investment plan (short, medium and long term);

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(ii) Scenarios for economic growth (low, medium and high);

(iii) relevant stakeholders (public, private, and civil society); and
(iv) Institutional development of water user/ farmer/irrigator associations, and/or company-based
service delivery systems, incl. training, extensions services and proposed improvements in
thenational regulatory framework, and measures to ensure institutions and services are socially
inclusive

Furthermore, the consultant shall discuss with relevant authorities and other stakeholders the derived
strategic priorities and align them with national development objectives.
III.B: Develop framework to assess and prioritize investment
The investment framework shall be prepared for different business lines (see before) by considering
the following:
(i) Geophysical feasibility. This shall take into account land type, agro-ecological
conditions, available water resources, and topography, as well as other relevant
factors. (from Stage II)
(ii) Specific value chains and market potential. This shall include evidence of market
and transport links suggesting the potential to sell the increased yield profitably, or
evidence of the potential for transformational investments that will create their own
markets, or supply chain and transport linkages (agronomic aspects)
(iii) Economic viability. Preliminary economic analysis shall be used to prioritize those
sub-projects based on potential incremental benefits;
(iv) Financial viability. The analysis shall demonstrate that the farmers who will receive
the service will be able and committed to recover the O&M costs (in monetary terms
or in physical contribution) ensuring sustainability of the association;
(v) Environmental acceptability. Preliminary environmental screening shall indicate
whether or not the potential development would likely comply with Kosovoan
environmental standards and the requirements of funding agencies.
(vi) Stakeholder support. The consultant shall gauge support for each project, from the
farmers who will benefit, as well as other key stakeholders. This will include farmers’
readiness and written commitment to form water user/ farmer/ irrigator associations
tasked and empowered to operate, maintain and recover costs for, the infrastructure
(or, where more effective, through company-based service delivery).
(vii) land tenure systems. Preliminary assessment on current and proposed land
tenure options and how these influence investment likelihood and prioritization, and
potential impact on disadvantaged groups
The consultant shall:
 describe how it will use spatial analysis, GIS and stakeholder consultations to rank the
schemes (preliminary) based on the factors highlighted;
 develop a check a list for assessing commitment from the farmers who will benefit to carry
out the operation, maintenance and cost recovery, as well as from the national and local
government and relate agencies that they will empower and facilitate the water
user/farmer/irrigator association, and/or company-based service delivery; and
 recommend best land tenure arrangements for effective irrigation investments.
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

III.C Irrigation Investment Opportunities/Projects

Using the framework for assessment and prioritization, overlaid on the potential as determined under
III.B, the consultant shall develop an inventory of prioritized investment opportunities taking into
account the diversified approach to irrigation (as per the derived typology and diversified strategic
objectives and prioritization in previous steps. :
The consultant shall determine investment levels for a well prioritized irrigation development plan
based on the multi criteria analysis. The consultant shall appraise and rank in order of priority the list
of viable irrigation investment opportunities, outlining short, medium and long term investments,
using a ‘score-card system’ for transparent and verifiable decision making and prioritization.
The appraisal of irrigation investment opportunities shall be finalized using preliminary cost-benefit
analysis for each project. The consultant shall estimate financial and economic Net Present Values and
Internal Rates of Return for each program or project; only viable projects with a positive economic
Net Present Value at an agreed discount rate shall be recommended.
The consultant shall then recommend which opportunities should be developed, based on the above
appraisal, in the form of an investment Action Plan.
Three of the projects shall concern specific improvement plans for the three irrigation companies,
focusing on their commonalities as well as their specific challenges as identified in this process.

III.D: Prefeasibility Studies for short term priority projects

Based on the assessment above the consultant will advancethat are highest priority to the pre-
feasibility level – the number of these projects and hectares to be covered will be determined in
consultation with the Client.
For physical development projects, this shall include technical assessments and drawings, conceptual
designs, cost estimates as well as a description of possible impacts, ecofin analysis; and ToRs for
detailed design. It is expected that this will address all viable area under the current irrigation
companies’ management, and a minimum of 15,000 hectares of potential newly serviced areas.
For non-physical programs of measures (e.g. matching grants, subsidies, advisory services), the
consultant shall detail the detailed objectives, costs, input requirements, timeframes and funding types,
as well as a detailed description of the specific steps and implementing arrangements.
The consultant shall identify all options that will allow to design fund applications in order to
maximize the likelihood that EU and other donor funds can be accessed.
For institutional and regulatory reform the consultant shall prepare draft proposals with sufficient
detail for decision makers.

IV:Draft Action Plan

The Action Plan shall include the recommended projects, and shall also involve developing the
following additional items:
 Strategies to capitalize on opportunities
 Funding plan
 Institutional and capacity development and suggestions for legislative and institutional
reform
 Monitoring and Evaluation
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 Terms of Reference for subsequent Consultancy assessments.

Each of these is detailed in the following sub sections:
Strategies to capitalize on opportunities
The consultant shall recommend a strategy for the development of the viable projects. In any event, for
each opportunity, the strategy shall make recommendations on the following points:
 Engagement with beneficiaries and other stakeholders; ensuring women and youth farmers
opportunities are optimized
 The physical location of infrastructure; where water resources will be drawn from; the
technologies to be used; and the types of crops expected;
 Complementary on-farm work and inputs needed;
 Supply chain and market linkages;
 Probable costs, financing and cost recovery; and
 Institutional responsibilities for construction, operation, maintenance and cost recovery of
the schemes.
Funding plan
 The consultancy shall develop a Funding Plan which recommends appropriate matching of
the investment with source of funding. The Funding Plan shall be matched to the interest
and requirements of the Government of Kosovo, development partners, and potential
private investors. It shall be tested for realism, long term sustainability; and shall clearly
recognizes that, depending on the type of irrigation, this could be privately financed, or
when publicly financed through taxes, irrigation service fees or through grants and loans.
The Plan should be fiscally sustainable and provide the right mix of private and public
finance. In any case, long term management, operation and maintenance needs be based on
full cost recovery in line with EU requirements and good global practice.
 The Funding Plan shall be designed to optimize the possibility to access grant funding by
donors, in particular EU funds (IPA, WBIF, TAIEX, etc.). The Plan shall also be designed
to optimally tie in with, and pro-actively inform agreements between the government and
other financiers, such as the World Bank (IDA, grant mix, etc.).
Institutional and capacity development
The consultant shall recommend any changes to Kosovo’s institutional framework, policies and
regulations related to irrigation it considers warranted, in order to ensure that:
 National policies for the agricultural water sector provide the necessary framework for
investments to be sustainable; are capable of promoting growth and contributing directly
and indirectly to poverty alleviation; and are embedded in national development strategies
and poverty reduction plans
 These policies are well-integrated within broader management of country or river basin
water resources strategies
 Policies define the respective roles of water users, local government, public water
companies, the public and private sectors, and of the ways to foster private investment.
More specifically, this shall advise on issues of the functional reporting line of irrigation
companies to MED and MAFRD respectively, the link to Inter-Ministerial Water Council
and water regulators, basin planning agency, role of municipalities, etc.
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

 Policies squarely deal with the specific issues that need to be tackled to ensure proper
water delivery, management, operation and maintenance (MOM), water charges, and cost
recovery for irrigation systems.
 Prepare for future alignment with EU acquis with respect to the Water Framework
Directive and the agricultural and rural development policies.
The consultant shall recommend where necessary changes to, the roles of actors in the sector relevant
to the implementation of the plan and within the sphere of influence of the Government, including:
 Sector Ministries;
 Local governments and public agencies such as water utilities;
 Coordination mechanisms, such as the Inter-Ministerial Water Council;
 Regional planning and management
 Irrigators;
 Civil society;
 Private firms; and
 Training institutions.
In particular, the consultant shall recommend any changes it considers necessary in the following
areas:
 The ability of the Government to work with farmers of all types, and to identify and pre-
appraise a pipeline of demand-responsive, cost-benefit justified irrigation opportunities
 Structure, governance and performance of the three irrigation companies in view of their
autonomy for decision making, their service orientation, their accountability and their
efficiency in service delivery (financial sustainability)
 Decentralized, participatory management by farmer groups, and governance and
management arrangements for those groups, including Water User Associations. WUAs
have been introduced unsuccessfully in the past in Kosovo, and a pragmatic approach on
their possible functions and institutional stability would need to precede a possible
reintroduction. Most importantly, this shall look at the functions rather than the form that
will best enable the various farmer groups to participate in project design, implementation
and management, and to compete in markets that enable them to function in a liberalized
socio-economic environment, supported by service providers that are accountable and
responsive to their needs.
 Sustaining service provision (post irrigation development) including by empowering
regional companies, private sector engagement, and improved oversight by MAFRD.
 Greater involvement by the private sector through institutional arrangements that support
public-private partnership (PPP) initiatives for high level production.

Monitoring and Evaluation

As part of the Investment Framework, the consultant shall develop a Management Information System
linked to the knowledge base and the agricultural sector-wide M&E systems in use, and identify and
discuss the implications of the Plan for this M&E system. The consultant shall develop the following,
with the purpose of having a flexible and practical sector monitoring that links rolling investment
planning to the higher level objectives set out before:

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 Indicators—The categories under which indicators shall be developed include:

 Institutional framework and development, performance indicators for the water
user/farmer/irrigator associations and similar institutions, and/or company-based
service delivery
 Climate change and its effect on rainfall variation and crop yield;
 Water resources availability and accessibility
 Agricultural water management area developed and users served
 Infrastructure management, operation, and maintenance
 Agricultural productivity and value added
 Profitability, cost effectiveness and employment
 Environmental impact and sustainability
 Economic growth, Poverty reduction and food security
 Targets for each indicator—these targets shall be in line with the benefits and
investments recommended in the Plan. They shall be set for the short, medium, and long
term
 Monitoring mechanism—a mechanism shall be recommended which is simple and
workable, and that will allow the Government to gather reliable information on actual
performance on each of the indicators (at appropriate intervals) and to compare this to
targets. Where relevant indicators should be gender-disaggregated.
 Difference analysis and intervention—the consultant shall recommend a procedure and
institutional approach that will allow the Government to detect when it is going off target,
analyze the reasons why, and where appropriate take corrective action
 Lessons for future projects and plans—the consultant shall also provide process and
institutional recommendations to enable the Government to use the monitoring data to
reflect periodically on what works and what does not, and to incorporate insight from this
analysis into design of future projects and strategies.
 The M&E framework shall also explicitly determine periodicity of updates of the Plan and
describe the methodology for adaptive changes.

Preparation of the Terms of Reference for Subsequent Consulting Services

The Terms of Reference shall be created for a subsequent consultancy to advise on:
 Specific Project feasibility engineering studies as well as detailed manuals for
operationalizing specific measures
 The development of technical standards, adapted from others used internationally in
irrigation and adapted for the context of Kosovo
 Other logical follow-on work, to be identified while the Investment and Financing Plan
consultancy is carried out

Deliverables
Except as indicated below formal and voluminous reports are not required or sought. Nevertheless,
documentation of the data, methodologies and results are extremely important.
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

The consultant will be expected to submit the following deliverables:

Reports Months after
start of
assignment
1 Strategic Objectives Report (Stage I); 3
2 Sector context and performance diagnostic report (Stage II); 6
3 Web-based Inventory and Database of irrigation potential (Stage 6
II);
4 Project Potential and Appraisal Methodology Report (Stage II); 8
5 Proposed Master Plan/Investment Framework Report (Stage III); 10
6 Draft Action Plan (Stage IV); 10
7 Final Action Plan (Stage IV); and 12
8 Final Completion Report. 12

The reports will comprehensively address the tasks set out in each stage. All reports shall have
executive summaries, shall be produced in both English and Albanian.
The Final Action Plan shall have an abridged version that shall provide a coherent story showing:
 Where improved irrigation development is needed
 What it will cost
 What benefits it will bring
 How different stakeholders should engage
 How institutional design and capacity will ensure value for money and sustainability
 How a Monitoring and Evaluation framework will provide accountability and allow for
systematic learning from experience.
This should be a short concise report that relies on the widely reviewed reports to provide detail, and
focuses on describing the objective, principles, alternatives, tradeoffs, and the plan agreed with the
stakeholders. It should be relatively short and written to the extent possible in non-technical language
to ensure that it is widely read.
Annexes shall provide:
 Additional detail needed on any particular points
 Data used, in raw and usable form
 Analysis and calculation performed to support the conclusions
 Analysis (also across countries in the region) of workable institutional arrangements for
local water user/farmer/irrigator associations, including the approaches for regulatory
framework enhancements and the capacity development of the farmers and the government
partners

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 A record of stakeholders consulted

 Manual for updating investment framework

Team Composition
The indicative staff position and input requirements, with corresponding minimum expected staff
qualifications, are as given below. Staff for all positions should be fluent in both spoken and written
English and have basic computer and common software usage skills. The c onsultant is encouraged to
hire as part of their team, also local qualified staff, with experience in respective areas/disciplines. For on-
the-job training part of the team shall be based in the client’s office for the duration of the assignment
and the team shall have permanent presence in Kosovo during the assignment.
The firm shall be expected to comprise of a multi-disciplinary team of professionals including, but not
limited to:

 Team Leader: Shall be a Senior Irrigation Planning Specialist/Institutional Specialist: The

specialist shall have expertise in carrying out feasibility and detailed design studies for
irrigation/agriculture projects, preferably but not necessarily in the region, with demonstrated
project management skills, with an MSc and at least 15 years of experience in the mentioned
areas.
 Should preferably have experience of multi-disciplinary and multi-stakeholder irrigation
development operating within the public and private sector.
 Should have experience in private sector linkages/PPP structures in irrigation.
 Must have proven experience of team management comprising international and local
experts; the ability to operate within multi-sectoral, multi-cultural, multi-skilled teams
and demonstrate flexibility in working style.
 Must possess excellent communication and transfer of knowledge skills (for capacity
building activities).
 Must be able to write clear, concise technical reports in English.

 Economist/Sector Finance Specialist: This specialist shall have expertise in economic analysis
and project financing in the agriculture or water sector, preferably in irrigation. The specialist
should have experience in economic modeling and financing planning. The specialist shall have
an MSc in economics and a minimum of 15 years of experience in public and private investment
planning.

 Irrigation/Civil Engineers: These specialists shall have expertise in designing and construction
of irrigation projects, preferably (but not necessarily) in the Balkans, with a minimum of MSc
and at least 10 years of experience in these areas;

 Hydrologist: He/She will be specialized in hydrological analysis of water resources for

irrigation purposes, with a minimum of MSc in Hydrology or Civil Engineering majoring in
hydrology or related field with at least 10 years of experience in these areas;

 Agro-economist/Agribusiness Expert: Specializing in developing investment plans for

irrigation/agriculture projects, detailing costs with ability to assess market and agro-processing
requirements and conducting detailed economic and financial analyses for feasibility studies for
irrigation schemes with a minimum of a MSc in Agribusiness or Agricultural Economics and 10
years of relevant experience.;
 Section 6. Bank Policy – Corrupt and Fraudulent Practices

 Agronomist /Soil scientist: Specializing in agronomic aspects of irrigated agriculture, to

determine agricultural potential, potential crop choice, crop water requirements, soil suitability.
The professional shall have at least an MSc in agronomy/crop husbandry or related field and and
10 years of relevant experience in irrigated agriculture.

 ESIA Expert: Specialized in preparing environmental and social management plans for
irrigation/agriculture projects, with mitigation and monitoring programs and associated costs;
and in advising on institutional arrangements and capacity building requirements to manage
projects. The professional shall have at least an MSc in Environmental Management/Science or
related field and 10 years of relevant experience;

 Institutional Specialist/Sociologist:Specialized in existing, or development of, new water

user/farmer/irrigator organizations and related institutional and regulatory structures. This
includes experience in community development, and financial and sociological analyses for
irrigation schemes of various size and nature, including gender assessmentThis expert would be
also cognizant of land tenure arrangements, and preferably hold an MSc in Social Science/Rural
Sociology/Community Development or a related field and 10 years of relevant experience. The
professional should have knowledge of and experience in working with water
user/farmer/irrigator associations, preferably in countries in transition from plan economy to
market economy.

 Dam Design Engineer: Specialized Dam Engineering and River Training and Bank Protection
with minimum of MSc in Civil Engineering and at least 15 years of relevant experience. S/He
shall be responsible for analyzing dam feasibility and identification of storage at prefeasibility
level for large scale schemes;

 Land Tenure Expert: Specialized in analyzing land tenure systems with MSc in Land
Administration or related field and at least 10 years working experience;

 GIS/Portal Database Developer: Specialized in GIS and remote sensing with systems with
MSc in Land Surveying or related field and at least 10 years working experience;

 Soil Scientist: Specialized in analyzing soils for irrigation purposes, with MScin Soil Science or
related field and 10 years of working experience; and

In addition, the firm shall be free to include in its proposal administrative support staff for a period of
approximately 12 calendar months.

Time frame
The entire assignment is expected to be implemented in a total of 12 calendar months.

Organization and Management of the Assignment

Responsibilities of the Client

The Client shall provide the consultant with relevant available reports and other documents related to the
assignment and shall not withhold any information pertinent to the consultant’s work. The Client shall
assist the consultant in all relevant local matters in order to ensure the smooth implementation of the

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assignment. In addition, the Client shall be responsible for providing office space to one member of the
consultant team (if desired) within MAFRD premises.

Responsibilities of the Consultant

The consultant shall also keep complete records of all works carried out under the assignment and
handover to the Client all documents, working papers, calculations and computer data produced during
the assignment.