Financing Asian Irrigation

Water resources are becoming increasingly scarce in the Asia and Pacific region. By 2050, agriculture will need to produce 100% more food in developing countries. Climate change and rapid population growth will place new pressures on already scarce water resources. Improved irrigation productivity---more crop per drop---and greater financial sustainability are critical. Estimates for the Asian region place a $12.31 billion annual investment required for irrigation between 2005 and 2030. Find out how the Asia and Pacific region is addressing the need to sustainably fund large-scale, publicly owned and managed surface irrigation and drainage systems.

Climate change, poverty, inequality, and other disruptive factors are changing the way water is used for agriculture. Although IFI investments are only one of the tools that can be used to address food and agricultural water security, they can be a critical catalyst for change. A research study carried out by the Stockholm Environment Institute, under the direction of the FAO Investment Centre, examines IFI investments and financing mechanisms in agricultural water over the last decade (2010–2019) and identifies emerging goals, areas of investments and innovations. The study aims to provide IFIs and international development agencies insight into what has and has not worked in agricultural water investments, while offering promising new mechanisms and investment priorities for the future. The analysis focuses heavily on public investment as provided by IFIs, but also considers the role of private and public-private investment, and farmers as private investors and entrepreneurs. This publication is part of the Directions in Investment series under the FAO Investment Centre’s Knowledge for Investment (K4I) programme.

This book examines the potentials and limitations of user fees for financing irrigation operation and maintenance.

Annotation This book provides an independent and comprehensive review of World Bank irrigation lending and policy between 1948 and 1993. The Bank's role in irrigation lending has been large--more than $30 billion (in current U.S. dollars) spread over some 600 projects. Only 200 projects have been in place long enough to be assessed. The overall performance record is good, but there is room for improvement.The report finds that there are still pervasive problems in maintenance and operation. Operating chaos prevails in most large canal systems in the humid tropics. In drier areas, drainage is the biggest environmental problem associated with irrigation. The author argues for upgrading existing systems, improving service, involving irrigators, and saving water where it is scarce.

'A unique and significant longitudinal study of irrigation intervention in FMIS in Nepal that revives important debates on how irrigation management evolves and how this can be investigated. This concise and accessible book can inform and challenge agencies and donors to reflect on policies and researchers to argue further the study of collective action and political theory in irrigation management.' – Linden Vincent, Wageningen University, The Netherlands 'Improving Irrigation in Asia by Elinor Ostrom and colleagues is grounded in intimate detail on water management experience in Nepal while being informed by broadly-applicable concepts and behavioral theories. It greatly advances our understanding of management options and effects. As the water resources available for agriculture become more limited and unreliable, the efficiency and productivity with which irrigation water is used must be increased. While better technology can assist in this quest, the greatest potential gains lie in the social and organizational domains.' – Norman Uphoff, Cornell University, US 'Governance of irrigation systems is complex, needing social, technical and financial actions that support farming. Few people have as much knowledge of self-governing irrigation systems as these authors, and few countries have as many of these systems as Nepal. Lessons from these small irrigation systems can be adapted to much larger units, and to other kinds of activity. External assistance on a modest scale could generate practical benefit, by encouraging self-reliance in communities.' – Charles Abernethy, International Irrigation Management Institute, Colombo (1987–94) and Asian Institute of Technology, Thailand (1996–99) Improving Irrigation in Asia is based on a longitudinal study over two decades on innovative intervention for sustained performance of irrigation systems. The work identifies key factors that can help explain the performance of interventions, and explicates lessons for resource management and the management of development assistance. In 1985, the Water and Energy Commission Secretariat of Nepal and the International Irrigation Management Institute developed an ingenious intervention program for nineteen irrigation systems located in the middle hills of Nepal in an attempt to overcome the prevailing 'best-practices' traps, in regard to assisting irrigation systems. This book highlights the innovativeness of the project lay in its provision of ample opportunities for farmers to make decisions regarding the operation of the irrigation system based on their local knowledge and creativity. The authors of this work, Elinor Ostrom, Wai Fung Lam, Prachanda Pradhan and Ganesh P. Shivakoti provide detailed analysis of these interventions and support the conclusion that farmers can build on an innovative intervention that not only provides physical improvements but also enhances farmers' problem-solving capacity. They argue that to achieve sustainable improvements in performance, the farmers themselves need to engage in collective action over time and support local entrepreneurs who provide leadership and stimulate adjustments to change. Providing practical policy solutions, this study will prove a fascinating and invaluable read for academics and scholars of development studies, resource management, and irrigation studies, as well as development specialists in international agencies, policymakers in governments and international donor agencies.

World Bank Technical Paper No. 256. World Bank lending contributes substantially to financing irrigation investments around the world. Asia has been the chief recipient of such World Bank lending, receiving 70 percent. India alone accounts for 27 p