Projects

The Study on Pricing Systems and Cost-Recovery Mechanisms for Irrigation

01.12.2004 - 30.06.2005

Kyrgyzstan

Overall project value (EUR)315000 USD
No. of staff provided5
Name of ClientMinistry of Agriculture, Water Resources and Processing Industry
Financing agencyAsian Development Bank (ADB)
Name of partnersAFC Consultants International (Germany)
Detailed Narrative Description of ProjectThe goal was to improve the sustainability and equity of drainage and irrigation services, particularly for poor farmers. The purpose was to identify and formulate appropriate pricing systems and cost-recovery mechanisms that reflect the ability and willingness of farmers to pay.
The study was expected to not only serve the Kyrgyz Republic but also to be relevant to other countries, particularly in Central Asia, in determining and recommending pricing schemes and cost-recovery mechanisms for drainage and irrigation systems.
The TA had four outputs: (i) current cost and revenue of drainage and irrigation services were determined, (ii) ability and willingness to pay for water and drainage and irrigation services assessed, (iii) a set of alternative pricing systems and cost-recovery mechanisms for irrigation infrastructure investment and O&M (operation and maintenance) suitable for WUAs developed, and (iv) information gathered disseminated.
Detailed Narrative Description of Services providedKey services included the following:
- Review the key literature on pricing systems and cost-recovery mechanisms in relevant countries; and key policy documents and legislation of the Kyrgyz Republic, including various decrees, Law on Water, Law on Water User Associations, and draft water code, to determine the current legal framework and identify any issues;
- Analyse DWR (Department of Water Resources) costs and revenues from the national to village levels to determine the ability to fund off-farm O&M;
- Review the development of WUAs under the On-Farm Irrigation Project and Agriculture Area Development Project to identify the various practices with respect to pricing systems and cost-recovery mechanisms;
- Conduct a field survey of up to four drainage and irrigation systems to determine the costs of water, O&M and capital investment;
- Formulate and propose alternative pricing systems and cost-recovery mechanisms to remove the key constraints on willingness and ability to pay, and take into consideration the final beneficiaries real ability to pay. The costs and benefits of each alternative will be identified and evaluated.