RESEARCH REPORT Costs and Performance of 109 Irrigation Projects: A Comparison of Sub-Saharan Africa and Other Developing Regions Arlene Inocencio, Masao Kikuchi, Manabu Tonosaki, Atsushi Maruyama, Douglas Merrey, Hilmy Sally and Ijsbrand de Jong Postal Address P O Box 2075 Colombo Sri Lanka Location 127, Sunil Mawatha Pelawatta Battaramulla Sri Lanka Telephone +94-11-2787404 Fax +94-11-2786854 E-mail [email protected] Website http://www.iwmi.org SM International International ISSN 1026-0862 Water Management Water Management IWMI isaFuture Harvest Center IWMI is a Future Harvest Center Institute supportedby the CGIAR ISBN 978-92-9090-658-2 Institute supported by the CGIAR Research Reports IWMI’s mission is to improve water and land resources management for food, livelihoods and nature. 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The authors: Arlene Inocencio is a Researcher formerly based at the Southern Africa Office of IWMI in Pretoria, South Africa, when this work was undertaken. She is now based at the IWMI Southeast Asia Office in Penang, Malaysia. Masao Kikuchi is a Professor of Agricultural Economics and Dean of the Faculty of Horticulture, Chiba University in Chiba, Japan. Manabu Tonosaki was a graduate student at the Faculty of Horticulture, Chiba University, when this work was done. He is currently associated with the Agriculture, Forestry and Fisheries Finance Corporation of Japan. Atsushi Maruyama is an Associate Professor of Agricultural Economics at the Faculty of Horticulture, Chiba University. Douglas Merrey was Director for Africa, then Principal Researcher for Policies and Institutions at IWMI when this work was done. He is currently Director of Research at the Southern African Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN), based in Pretoria, South Africa. Hilmy Sally is Head of the Southern Africa office of the International Water Management Institute (IWMI) in Pretoria, South Africa. Ijsbrand de Jong is a Senior Water Resources Specialist, Rural Development Operations, Eastern and Southern Africa, World Bank, Washington, D.C. Inocencio, A.; Kikuchi, M.; Tonosaki, M.; Maruyama, A.; Merrey, D.; Sally, H.; de Jong, I. 2007. Costs and performance of irrigation projects: A comparison of sub-Saharan Africa and other developing regions. Colombo, Sri Lanka: International Water Management Institute. 81 pp. (IWMI Research Report 109) / irrigation programs / irrigation projects / irrigation costs / agricultural water investment / investment policy / financing / development aid / project performance / construction / rehabilitation / operations / maintenance / irrigation management / farmer participation / regression analysis / models / sub-Saharan Africa / ISSN 1026-0862 ISBN 978-92-9090-658-2 Copyright © 2007, by IWMI. All rights reserved. Cover Photographs (clockwise from top left): • Victoria Dam in central hills of Sri Lanka (photo credit: Arlene Inocencio) • Spillway of Kotmale Dam in central hills of Sri Lanka (photo credit: Mahaweli Authority of Sri Lanka) • Irrigation canal and paddy field in Indonesia (photo credit: Jasa Tirta II Public Corporation) • Control structure, smallholder irrigation scheme, South Africa (photo credit: Abdul Kamara) Please send inquiries and comments to [email protected] ii ii Contents Acronyms and Abbreviations iv Acknowledgements v Summary vii Introduction 1 The Data 3 Profiles of the Sample Irrigation Projects 9 Understanding Costs of Irrigation Projects in SSA 17 Determinants of Cost and Performance of Irrigation Projects 31 Summary of Findings and Recommendations 41 Literature Cited 47 Appendix A: List of Sample Projects and Their Characteristics by Region 51 Appendix B: Regression Analysis for Identifying Determinants of Cost and Performance of Irrigation Projects 69 iii iii Acronyms and Abbreviations ADB-PEO Asian Development Bank - Post Evaluation Office AfDB African Development Bank AQUASTAT FAO’s information system on water and agriculture BWDB Bangladesh Water Development Board CAADP Comprehensive Africa Agriculture Development Programme CAD Command Area Development CV Coefficient of variation EA East Asia EIRR Economic internal rate of return FANRPAN Food, Agriculture and Natural Resources Policy Analysis Network FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product ICR Implementation Completion Report IFAD International Fund for Agricultural Development IFPRI International Food Policy Research Institute ILRI International Livestock Research Institute IMF International Monetary Fund IMT Irrigation management transfer InWEnt Internationale Weiterbildung und Entwicklung (Capacity Building International) IWMI International Water Management Institute LAC Latin America and the Caribbean MDGs Millennium Development Goals MENA Middle East and North Africa MSPs Multi-sector projects NEPAD New Partnership for Africa’s Development O&M Operation and Maintenance ODA Official development assistance OFDA Office of United States Foreign Disaster Assistance PCR Project Completion Report PIM Participatory irrigation management PPAR Project Performance Audit Report PPP Purchasing power parity SA South Asia SADCC Southern African Development Coordination Conference SAR Staff Appraisal Report SD Standard deviation SEA Southeast Asia SSA sub-Saharan Africa USAID United States Agency for International Development WB World Bank WDI World Development Indicators WUA Water users’ association iv Acknowledgements This paper is an offshoot of a study carried out acknowledge the important contribution of one under the Collaborative Program on “Investments co-author of that report, Frits Penning de Vries in Agricultural Water Management in sub- (formerly IWMI). Although earlier versions of this Saharan Africa: Diagnosis of Trends and paper have been shared with the members of Opportunities.” This Program involves the Collaborative Partnership Working Group, the collaboration among the African Development authors remain responsible for the contents, Bank (AfDB), Food and Agriculture Organization which do not necessarily reflect the views of the of the United Nations (FAO), International Fund collaborating partners, reviewers, or IWMI. The for Agricultural Development (IFAD), International authors wish to acknowledge the excellent Water Management Institute (IWMI), New research support provided by Jeremy Bricker, Partnership for Africa’s Development (NEPAD), Sarah Queen, Oyenika Oyenuga, Brhanu and the World Bank. Other supporting partners Muhammed Said Imam, Yemane Fesseha included the International Livestock Research Gebrehiwet, and Candida Nakhumwa. Our Institute (ILRI), International Food Policy appreciation also goes to Armand Evers of the Research Institute (IFPRI), Comprehensive Netherlands Ministry of Foreign Affairs, Harlan Assessment of Water Management in Hale of USAID/OFDA Southern Africa Regional Agriculture, and Capacity Building International Office, Ben Lamoree of ARCADIS, Mark (InWEnt). This particular study was co-funded by Rosegrant of IFPRI, Frank van Steenbergen of the World Bank and IWMI with complementary MetaMeta, S. Suter of Halcrow Group, Wouter support from the Comprehensive Assessment of Lincklaen Arriens and other participants of the Water Management in Agriculture Program and Asian Development Bank Blue Bag Seminar, and the Faculty of Horticulture, Chiba University. We colleagues at IWMI, in particular Dominique thank the World Bank and the African Rollin, Matthew McCartney, Sylvie Morardet, Development Bank for allowing the team access Francis Gichuki, Hugh Turral, and Mark to irrigation project documents which contained Giordano, who provided valuable comments on the data used in this study. Much of the data earlier versions of this paper. Finally, we thank and first round of the analysis are contained in Randy Barker not only for his review comments