Irrigation Systems Operation Efficiency Improvement Project (Financed by the Japan Special Fund)

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Irrigation Systems Operation Efficiency Improvement Project (Financed by the Japan Special Fund) Technical Assistance Consultant’s Report Project Number: 33453 May 2009 PHI: Irrigation Systems Operation Efficiency Improvement Project (Financed by the Japan Special Fund) Prepared by Kellogg Brown and Root Pty Ltd. Manila, Philippines For National Irrigation Administration This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. I ABBREVIATIONS ADB Asian Development Bank CIS Communal Irrigation Scheme GoP Government of the Philippines NIA National Irrigation Administration IMO Irrigation Management Offices ISOEIP Irrigation System Efficiency Improvement Project PPTA Project Preparatory Technical Assistance PIM Participatory Irrigation Management IA Irrigators Association IDP Institutional Development Program IMT Irrigation Management Transfer ISF Irrigation Service Fees LGU Local Government Unit MASSCOTE Mapping System and Services for Canal Operation Techniques NGO Non-Government Organisation NIS National Irrigation Scheme O&M Operation & Maintenance EEN901-INC-REP-001-Rev. A 29 May 2009 II TABLE OF CONTENTS 1. INTRODUCTION ..........................................................................................................3 2. BACKGROUND ............................................................................................................4 3. ACHIEVEMENTS .........................................................................................................7 A. Deployment of Consultants...............................................................................7 B. Consultation Meetings ......................................................................................7 C. Office Establishment .........................................................................................8 D. Framework for the Work ...................................................................................8 E. Data Gathering and Field Reconnaissance Visits.............................................8 F. Initial Findings from the Field ..........................................................................10 1. Physical infrastructures.................................................................................. 10 2. IAs................................................................................................................... 11 3. Lack of Capital ............................................................................................... 12 4. Land Conversion ............................................................................................ 13 5. NISs and CISs Visited in Davao del Norte ..................................................... 13 6. NISs and CISs Visited in Antique, Aklan and Iloilo ....................................... 20 G. Subproject Selection Criteria ..........................................................................27 4. WORKPLAN ...............................................................................................................30 H. Specific areas .................................................................................................30 1. Outline of activities......................................................................................... 31 5. SPECIAL ISSUES ON PPTA IMPLEMENTATION.....................................................33 6. ANNEX A: List of Persons Met ANNEX B: Profile of Proposed Subprojects ANNEX C: Criteria for Subprojects ANNEX D: Personnel Schedule ANNEX E: Revised Work Schedule (following Inception Workshop) EEN901-INC-REP-001-Rev.A 29 May 2009 3 1. INTRODUCTION 1. This document is the inception report for the Irrigation System Operation Efficiency Improvement Project (ISOEIP), TA 7141-PHI, COSO/90-474, between Asian Development Bank (ADB) and Kellogg Brown and Root Pty Ltd, Australia (KBR) of 13 March 2009. The inception report includes elements of above contractual agreement; the deliberations between ADB and KBR, the discussions during the inception Phase between ADB, NIA and the PPTA team and the major observations and findings of the team during the five week inception phase. 2. The inception report is divided into different sections: background to the PPTA, accomplishments by the TA team during the inception Phase, 20 April-22 May 2009, the work plan for the period 23 May-20 October 2009, special issues and the following annexes: (a) a list of persons met during the inception phase, (b) profile of each proposed subproject visited, (c) revised work plan, and (d) manning schedule of consultants. 3. The inception report has been prepared to provide a feedback to the implementing and funding agencies of work done so far, and the next steps to facilitate the tripartite PPTA coordination meeting scheduled in June 2009. (Date and venue to be further agreed upon). 4. This inception report and the subsequent deliberations of the Tripartite inception Meeting between the Government of the Philippines (GoP), ADB and the PPTA team will become an official project document, and will update and replace earlier proposals, implementation plans, deployment schedules and written working modalities for this PPTA. EEN901-INC-REP-001-Rev. A 29 May 2009 4 2. BACKGROUND 5. The detailed background to the ISOEIP has been described in several documents, and does not need to be fully repeated in this inception report. Just a brief summary is presented to provide context to the contents and recommendations of this inception report, and the forthcoming feasibility study of the PPTA. 6. The irrigation sector in the Philippines, like several other countries in the world, was well supported with heavy investments in development and expansion of irrigation systems in the 1960ies and earlier. It has later proved difficult to operate and maintain many of these facilities and to attain the planned capacities and estimated outputs and benefits. It has also been difficult to maintain the political support and funding for the irrigation sector due to several other development concerns and investments of a modernizing economy and society. The strong international direction to abolish subsidies and incentives, combined with structural reforms, have furthermore reduced the political and financial support to favor national and communal irrigation facilities. This has further hit the irrigation sector since products and commodities of most sectors have increased with some 100 – 1000% during the same period, hence causing less interest in irrigated agriculture among some producers, investors and politicians. 7. The result has been that government funding to the irrigation sector has been reduced with further deterioration and degradation of the irrigation facilities and the decline in agri-cultural production as the result. A number of regional policy efforts aiming to reduce government costs by devolving responsibilities to the water users and to make the National Irrigation Administration (NIA) leaner and more cost effective followed in the 1970s and early 1980s. This followed in the development wake of growing understanding of the application and development of more democratic and participatory methods and principles in decision making at all levels around the world. It has been concretely manifested in the Philippines with the enactment of the Local Government Code into law in 1992. 8. NIA was established by the GoP in 1963, and was in the 1970s struggling with maintaining the existing irrigation facilities while at the same time identifying and developing new ones to meet the increasing demand for rice and food in general. Under its present setup, NIA has been confronted with inadequate funding, and responded to this challenge in the early 1970s by introducing the Participatory Irrigation Management (PIM) and Institutional Development Program (IDP). A core feature of the IDP was the establishment of viable Irrigators’ Associations (IAs) aiming at the formation, development and operation of IAs to assume different degrees of responsibility for O&M at the tertiary level of the increased irrigation facilities under different contractual agreements. 9. The agricultural sector, which includes irrigation as a key part, plays a very important role in the Philippines. It employs some 40% of the labor force, and accounts for almost 20% of the gross domestic product, besides being a critical factor as well as a prime mover in the reduction of rural poverty. Philippines is presently one of the largest importer of rice in the world (self sufficiency in 1970) with a total population of 90 million people, of which some 37% live below the poverty line. (WB statistics and JICA, inception report, March 2009). Although the agricultural sector is very important for the economy, food security, employment, a healthy population, stability and foreign exchange, the secor, and in particular the producers have experienced little, or no, increase in farm gate prices during the past 2-3 decades. 10. An important step in the development of the ISOEIP was the GoP’s request to ADB in 2004 to provide assistance to an investment project aimed at improving agricultural productivity through rehabilitation and improved management of irrigation schemes. The GoP had prioritized the ISOEIP and included it in the Comprehensive Integrated Infra-structure Program (CIIP) of the GoP for CY 2008-2010. NIA and ADB reformulated the ISOEIP
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