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Guidelines on Irrigation Investment Projects

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Guidelines on Irrigation Investment Projects Guidelines on irrigation investment projects Guidelines on irrigation investment projects FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2018 Required citation: FAO. 2018. Guidelines on irrigation investment projects. Rome.122 pp. Licence: CC BY-NC-SA 3.0 IGO. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-131131-8 © FAO, 2018 Some rights reserved. This work is made available under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO; https://creativecommons.org/licenses/by-nc-sa/3.0/igo/legalcode/legalcode). Under the terms of this licence, this work may be copied, redistributed and adapted for non-commercial purposes, provided that the work is appropriately cited. In any use of this work, there should be no suggestion that FAO endorses any specific organization, products or services. The use of the FAO logo is not permitted. If the work is adapted, then it must be licensed under the same or equivalent Creative Commons licence. If a translation of this work is created, it must include the following disclaimer along with the required citation: “This translation was not created by the Food and Agriculture Organization of the United Nations (FAO). FAO is not responsible for the content or accuracy of this translation. The original [Language] edition shall be the authoritative edition. Disputes arising under the licence that cannot be settled amicably will be resolved by mediation and arbitration as described in Article 8 of the licence except as otherwise provided herein. The applicable mediation rules will be the mediation rules of the World Intellectual Property Organization http://www.wipo.int/amc/en/mediation/rules and any arbitration will be conducted in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). Third-party materials. Users wishing to reuse material from this work that is attributed to a third party, such as tables, figures or images, are responsible for determining whether permission is needed for that reuse and for obtaining permission from the copyright holder. The risk of claims resulting from infringement of any third-party-owned component in the work rests solely with the user. Sales, rights and licensing. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. Requests for commercial use should be submitted via: www.fao.org/contact-us/ licence-request. Queries regarding rights and licensing should be submitted to: [email protected]. iii CONTENTS Foreword v Acknowledgements vi Acronyms and abbreviations ix Introduction 1 I. Background and purpose 1 II. Structure of the guidelines 2 III. Key elements and typologies of irrigation schemes 3 IV. The project cycle 4 PART 1 7 Trends, Lessons and Issues 7 1.1 Trends in the irrigation sector 7 1.2 Lessons learned from recent investment operations 10 1.3 Issues to be addressed 12 PART 2 13 Processing Investment Projects 13 2.1 Project identification 13 2.2 Project preparation 25 2.3 Appraisal and negotiation 33 2.4 Project implementation 35 2.5 Monitoring and evaluation (M&E) 41 PART 3 51 Innovative Approaches and Tools 51 3.1 Water governance 51 3.2 Water accounting and auditing (WAA) 54 3.3 Irrigation modernization planning and design 59 3.4 Agricultural water management (AWM) investment planning 61 3.5 Evapotranspiration (ET)-based water saving 64 3.6 Advanced methods and approaches for economic evaluation 68 3.7 Adoption of CFS-RAI in irrigation projects 73 ANNEXES ANNEX 1 79 ANNEX 2 82 ANNEX 3 83 ANNEX 4 84 ANNEX 5 87 ANNEX 6 88 ANNEX 7 95 REFERENCES 100 v FOREword Significant and responsible public and private investments in irrigation are vital for delivering on the 2030 Agenda – from reducing poverty, improving food and nutrition security and boosting agricultural production, to strengthening rural livelihoods and managing land and water resources sustainably. Development of the irrigation sector faces multiple challenges, including water scarcity and degradation, competition over shared resources, agricultural transformation and the impact of climate change. Business as usual is not an option. Investments in irrigation innovations that promote productive, equitable and sustainable water use are urgently needed in order to provide more reliable, flexible and diversified water services for agriculture and rural development. The Food and Agriculture Organization of the United Nations (FAO) is the custodian agency of 21 of the Sustainable Development Goal (SDG) indicators under the Agenda. FAO’s Strategic Programme to make agriculture, forestry and fisheries more productive and sustainable underscores the importance of an integrated approach for efficient use of natural resources, including water resources. The Organization’s Land and Water Division promotes innovative approaches and best practices for managing water for agriculture, while FAO regional offices in the Near East and North Africa and Asia and the Pacific are leading initiatives that address water scarcity. FAO’s Investment Centre continues to support countries to make more and better investments in food security, nutrition, agriculture and rural development to improve rural livelihoods, raise incomes and safeguard the natural environment. These are just some of the ways FAO has aligned its work to contribute to achieving the SDGs. These Guidelines are the product of a collaborative, multidisciplinary team, with contributions from various FAO technical units and decentralized offices as well as external partners, including the International Fund for Agricultural Development, the European Investment Bank, the International Commission on Irrigation and Drainage and the World Bank. They complement the existing FAO Guidelines for planning irrigation and drainage investment projects, published in 1996, by providing updated technical references and guidance on how to apply the innovative approaches and practices at each stage of the irrigation investment project cycle. It is our sincere hope that these Guidelines, which add to a growing body of knowledge on irrigation investment support, provide a useful reference to national and international professionals involved in irrigation investment operations. Mohamed Manssouri Eduardo Mansur Director Director FAO Investment Centre Division FAO Land and Water Division vi AcknowlEDGEMENTS An inter-organizational team, led by FAO’s Investment Centre Division (TCI), has jointly formulated the Guidelines. Contributing partners include: the FAO Land and Water Division (CBL); the FAO Trade and Markets Division (EST); the FAO Coordination Office of Strategic Programme 2 (SP2); the Policy and Technical Advisory Division (PTA) of the International Fund for Agricultural Development (IFAD); the World Bank; the International Commission on Irrigation and Drainage (ICID); the European Investment Bank (EIB); and individual consultants, namely: O Mr Amadou Soumalia, Former Senior Irrigation and Rural Infrastructure Engineer, FAO TCIA O Ms Audrey Nepveu, Technical Adviser, Water and Rural Infrastructure, IFAD PTA O Mr Giovanni Munoz, former FAO Land and Water Development Engineer, currently working at the EIB O Mr Jacob Burke, Former Lead Irrigation Specialist, World Bank O Mr Jean-Marc Faures, Senior Officer, FAO SP2 O Mr Klaus Urban Former Senior Rural Institutions Officer, FAO TCIB (deceased) O Ms Maria Ricci, Irrigation Engineer, Consultant, FAO TCIC O Mr Martin Burton, Consultant, FAO TCI O Mr Mawira Chitima, Lead Technical Specialist, Water and Rural Infrastructure, IFAD PTA O Ms Patricia Mejias Moreno, Programme Officer, FAO CBL O Ms Rimma Dankova, Senior Adviser, FAO TCID O Mr Takumi Kunitake, Former Programme Officer, FAO EST O Mr Yesuf Abdella, Irrigation and Rural Infrastructure Engineer, FAO TCIA O Mr Zhanyi Gao, Former President of ICID O Mr Zhijun Chen, Senior Investment Support Officer, Water and Rural Infrastructure, FAO TCIB Mr Zhijun Chen served as the Team Leader, who organized and led the overall formulation process. Ms Rimma Dankova and Mr Giovanni Munoz supported team coordination. Ms Maria Ricci and Ms Alessandra Gage, environment and climate change consultant, FAO TCIB, assisted with the detailed formulation process. Specifically, Mr Zhijun Chen is the lead author of the Introduction, Section 2.1 and Annex 1, and contributed to the consolidation and finalization of Part 1. Mr Zhanyi Gao is the lead author of Sections 1.1 and 3.5. Ms Audrey Nepveu is the lead author of Section 1.2 and contributed to the formulation of Sections 2.4 and 2.5. Mr Jacob Burke is the lead author of Section 1.3 and contributed to the formulation of Sections 2.1, 2.2 and 2.3. Mr Giovanni Munoz is the lead author of Section 2.2 and Annex 2. Mr Amadou Soumaila is the lead author of Section 2.3 and Annex 4. Mr Yesuf Abdella is the lead author of Section 2.4. Mr Martin Burton is the lead author of Section 2.5 and Annex 3. Mr Klaus Urban formulated Section 3.1. Ms Patricia Mejias vii Moreno formulated Sections 3.2 and 3.4. Ms Maria Ricci formulated Section 3.3. Ms Rimma Dankova formulated Section 3.6 and contributed to the formulation of Sections 2.1, 2.2, 2.4 and 2.5. Mr Takumi Kunitake formulated Section 3.7.
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