The Private Public Partnership a Strategic Choice for Efficient and Sustainable Irrigation Management in Morocco
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3rd World Irrigation Forum (WIF3) ST-3.3 1-7 September 2019, Bali, Indonesia W.3.3.11 THE PRIVATE PUBLIC PARTNERSHIP A STRATEGIC CHOICE FOR EFFICIENT AND SUSTAINABLE IRRIGATION MANAGEMENT IN MOROCCO A. El Bouari1, M. Ouhssain2, S. Oudrhiri3, R. tanji4 ABSTRACT Irrigated agriculture is at the heart of Morocco's economic and social development. It plays a crucial role in meeting Morocco's food needs. It also generates more than 75% of the country's agricultural exports and providing jobs for half the rural labour force. However, irrigation monopolizes the country's scarce water resources, accounting for 85% of water usage. With water resources becoming increasingly scarce, Morocco urgently needs to find a better way to manage water for irrigation. Indeed, the sector of irrigation in Morocco is confronted with several constraints, in particular because of the limits of the institutional framework which continues to govern the sector. These limits, which mainly concern the Regional Offices for Agricultural Development (ORMVAs), can be summarized as follows: their statutory framework as public institutions of an administrative nature; their current budgetary framework which does not clearly establish the principle of separation of public service missions and commercial missions; their dependence on the State's budgetary resources; and the relational framework that establishes a state-to-user relationship in which the farmer positions himself in the state's favor rather than as a customer of the water service. These limits have not allowed the irrigation sector to generate sufficient internal financial resources to guarantee the sustainability of the equipment and to ensure an efficient water service. The expenses, even recurrent of this service, continue to be partly covered by budgetary transfers. In this context and since the end of the 1990s, the Department of Agriculture after a thorough examination of the feasibility of the various possible options: (i) the autonomy of the water service within the ORMVA, (ii) the transfer of management to farmers and (iii) the delegated management in a private setting, concluded that the option of delegated management in a public-private partnership framework is appropriate. The interest of this option has been demonstrated through the realization of the Public Private Partnership project for the safeguarding of the citrus area of El Guerdane in Souss (10,000 ha). In fact, a delegated management agreement was signed in 2005 between the Ministry of Agriculture and a private operator (Amensouss company) to co-finance, implement and manage the irrigation infrastructure. Indeed, the construction was completed in July 2009 and management by the delegate started in October 2009 after inauguration by HM King Mohammed VI, may God glorify him, on October 2nd, 2010. Building on the success of this unprecedented international experience, the Ministry of Agriculture adopted the public-private partnership in irrigation as an important institutional reform for the upgrading and modernization of irrigation. 1 Agricultural Engineer, Director of Irrigation and management of agricultural land, Ministry of Agriculture, Fisheries, Rural Development, Water and Forests. [email protected] 2 Agricultural Engineer, Head of PPP Division at Directorate of Irrigation and management of agricultural land, [email protected] 3 Agricultural Engineer, Head of Service of Monitoring and regulation of PPP in Irrigation 4 Agricultural Engineer, Head of Service of promotion and implementation of PPP in Irrigation 1 3rd World Irrigation Forum (WIF3) ST-3.3 1-7 September 2019, Bali, Indonesia W.3.3.11 Today, the program of public-private partnership in irrigation is concerning many perimeters, we name as some important ones: The seawater desalination irrigation project in the Chtouka Ait Baha area in Souss-Massa to irrigate 15,000 hectares; Azemmour - Bir Jdid coastal zone irrigation project (3,200 hectares) and extension of irrigation project in the Dakhla zone using desalinated water and wind energy on 5,000 hectares. Keywords: Morroco, Irrigation, Irrigated agriculture, Public-Private Partnership 1. INTRODUCTION Irrigated agriculture in Morocco, although it concerns only 15% of cultivated areas, contributes about 45% on average of agricultural value added and accounts for 75% of agricultural exports. This contribution is even more pronounced during the dry years when production in the Bour5 zones is severely affected. During the 1994-1995 dry year, this contribution amounted to 70% of this added value. It has also contributed substantially to improving the living conditions of farmers through a multiplier effect on their income, opening up and access to other community public services such as drinking water, electrification, etc. The continuous efforts of the public authorities for the development of the sector have made it possible to develop a total area of more than 1,016,000 ha, of which nearly 683,000 ha are in the large perimeters, which are managed by the Regional Offices for Agricultural Development (ORMVA), public institutions with representative from civil and with financial autonomy. 2. IRRIGATION POLICY IN MOROCCO It was in its battle against underdevelopment that the government decided to reserve a place of choice for these irrigated perimeters. The Agricultural Investment Code has come to reflect the action of the Government in favor of the agricultural sector and its desire to intervene more directly in the process of agricultural production. For this reason, the Government has engaged in irrigated perimeters, in an important process, not only of external equipment but also of internal equipment of the farms for a better valorization of water and soil. This strong commitment of the government, left little space for the initiative of the farmers or any other operator of the private sector wishing to contribute to the development of the sector by its expertise, its flexibility, its capacity to diversify the risks, etc. At the time, this approach was justified by the objective socio-economic conditions of the rural world and by the options decided by the government with regard to the economic and social development of the country. The evolution of the national and international economic contexts, the disengagement of the Government, the abandonment of compulsory rotation plans, the daily practices of the users and the “dirigiste” policy in agricultural production in the irrigated perimeters force the adaptation of the legal framework to the reality of the ground. The organic link established in time between water management and the other activities of the ORMVAs is no longer justified. Indeed, the sector is confronted with several constraints, in particular because of the limits of the institutional framework which continues to govern the sector. These limits, which mainly concern the ORMVAs, can be summarized as follows: 5 Rain zone 2 3rd World Irrigation Forum (WIF3) ST-3.3 1-7 September 2019, Bali, Indonesia W.3.3.11 • their statutory framework as public institutions of an administrative nature; • their current budgetary framework which does not clearly establish the principle of separation of public service missions and commercial missions; • their dependence on the government’s budgetary resources; • and the relational framework that establishes a government -to-user relationship (ORMVA) in which the farmer positions himself in the Government’s favor rather than as a customer of the water service. These limits have not allowed the irrigation sector to generate sufficient internal financial resources to guarantee the sustainability of the equipment and to ensure an efficient water service. The expenses, even recurrent of this service, continue to be partly covered by budgetary transfers. 3. THE EMERGENCE OF A MODEL FOR CARRYING OUT IRRIGATION PROJECTS For decades attempts have been made to avoid jeopardizing the whole effort of the national community in the field of irrigation. The salvation by which the sector must be sustainably improved is the reform of the institutional framework governing this service. The content of this reform is summarized in: a) The adaptation of the texts by repealing the statutory and regulatory provisions of a prescriptive nature. b) The continuation and consolidation of the policy of encouraging users to invest in the modernization of irrigation techniques on the plot (localized irrigation, pivot, improved spraying, etc.). c) The separation of the management of the irrigation service from the other activities of the ORMVAs. d) The financing of the extension of irrigation, particularly through the opening of the irrigation sector to private developers in the framework of public-private partnership, which was the most appropriate choice of management of the water irrigation service to ensure its durability and quality. In this context and since the end of the 1990s, the Department of Agriculture after a thorough examination of the feasibility of the various possible options: (i) the autonomy of the water service within the ORMVA, (ii) the transfer of management to farmers and (iii) the delegated management in a private setting, concluded that the option of delegated management in a public-private partnership framework is appropriate. 3.1 A Project to Test a Reform: The interest of this option has been demonstrated through the realization of the PPP project for the safeguarding of the citrus area of El Guerdane in Souss (10,000 ha). In fact, a delegated management agreement