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Unlocking Value
in South Asia’s Irrigation
     David Molden
          Based on work by:


  Aditi Mukherji, Thierry Facon,
        And many others
Main message 1

Irrigation has been important in Asia
  – Asia contains 70% of world’s irrigated area
  – Irrigation was key to the success of Green
    Revolution
  – This helped alleviate poverty and boost rural
    growth



  How important will it be?
Growth in food demand 2000 – 2050
            South Asia




       Water for a food-secure world
Agriculture ET in 2000 and 2050
  no water productivity gains
                                    Need to produce
                                    more food, but
                                    minimize extra
                                    water use –
                                    Change is needed




  South Asia      East Asia             Central Asia
               Water for a food-secure world
Water for Food – 4 paths

1. Increase production in rainfed areas
– scope for gains debated
2. Irrigation – expansion and productivity gains
-good for poverty & food, but bad for
    environment
3. Trade – buy food from somewhere else –
- but realistic to rely on trade?
4.Reduce waste and overuse from field to fork
-but strong trends of diet change
Main message 2

• Asia still needs to invest in irrigation
  – To raise land and water productivity
  – To feed a growing population
  – To adapt to climate change
  – Secure livelihoods and alleviate poverty
  – But within the limits posed by natural resource
    base


  What are those investments?
Investing in Irrigation
2.5                                                                                                    320



                                                                                                       280

2.0
                                                                                                       240
                                                                                          July 2008


             Food price index
                                                                                                       200
1.5


                                                                                                       160
                Irrigation
                                                          Living Planet index
                                                                                               Jan
1.0                                                            Freshwater                     2009
                                                                                                       120

      World Bank lending
      for irrigation
                                                                                                       80
0.5

                                                                                                       40



  0                                                                                                    0
      1960       1965        1970   1975   1980   1985   1990      1995         2000   2005     2010
Irrigated investment & irrigated area - India

Groundwater                             Trends of public expenditure in major and medium irrigation
                                           and net irrigated area under different sources in India


                                60                                                                                               42


                                                                                                                                 36
                                50
(billion US$, in 2000 prices)




                                                                                            Groundwater
                                                                                            Irrigated Area                       30




                                                                                                                                      Net irrigated area
                                40
         Expenditure




                                                                                                                                         (million ha)
                                                                                                                                 24
                                30
                                                                                                      Canal                      18
                                                                                                      Irrigated Area
                                20
                                                                                                                                 12
                                                                 Expenditure US$
                                10                                                           Tank                                6
                                                                                             Irrigated Area
                                0                                                                                                0
                                 1960             1970                1980                 1990                 2000


                                             Expenditure               Tanks                 Canals                Groundwater
              Source:
              Amerasinghe et
              al
Trend: Growing informal water economies
                 Informal                               Formal
       Self-supply predominates            Service providers dominate

       Vast numbers of tiny, primary       Very few, but large primary
       water diverters from nature         diverters of water from rivers, lakes

       Water institutions are local,       Water institutions are few, formal,
       fragmented, informal                legal bodies

       Intermediation in water services    Very high degree of
       are low or absent                   intermediation in water provision

                                           Even if water is plentiful, it costs
       Even if water is scarce its free…
                                           money…



Source: Tushaar Shah
                          Water for a food-secure world
Irrigation Pumps in Bangladesh and Vietnam




          The Pump Revolution
US dollar per m3




                                                        0
                                                            0.1
                                                                  0.2
                                                                          0.3
                                                                                    0.4
                                                                                                   0.5
                                                                                                                        0.6
                                                                                                                              0.7
                                   Chishtian sub-div.

                                       Mahi-Kadana

                                      Nachchaduwa

                                               Muda

                                       Rajanganaya

                                           Nile Delta

                                     Kourani Baria II

                                     Sunsari Morang




* surface water and public wells
                                              Gorgo

                                       West Gandak

                                       Marchwar Lift

                                               Saga




** private wells
                                      Big Thompson

                                             Khageri

                                       Panchakanya

                                          Fryingpan

                                             Kankai

                                            Mogtedo

                                            Saldana

                                      Kourani Baria I

                                             Seyhan

                                              Coella

                                                RUT



                                                                                           Across irrigation systems
                                             Torreon
                                                                                                                                                                                                                          irrigation schemes



Salvatierra Module**
                                                                                           Value produced per unit ET
                                    Alto Rio Lerma *

                                   Cortazar Module*

             Salvatierra Module*

                                          Menemen

                                          Imperial ID

                                             Manisa

                                            Samaca

        Triffa Scheme, Sec.…

                                    Alto Rio Lerma **

                                             Sarigol
                                                                                                                                    Figure 4: Standardised Gross Value of Production per unit water consumed by ETcrop




                                       Panoche WD

                                              Adala

                                   Bhairawa Lumbini

                                            Alasehir

                                            Turgutlu

                                   Cortazar Module**
                                                                                                                                                                                                                                                                        Situation




                                               Savili
                                                                                                                                                                                                                         Underperformance of many large scale surface
Causes of poor performance
  – Lack of accountability:
                  Management
      Society                       Users
                  Bureaucracy

  – Surge in individual pump/lift based irrigation
  – Failed attempts at institutional reform


Benchmark irrigation performance making data
 publically accessible
Main message 3

Adapt yesterday’s irrigation for tomorrow
  – Changing demography and dietary needs
  – To provide more ecosystem services, adapt to
    climate change
     • But the old systems do not cater to these demands
  – State built irrigation are under performing
     • Forcing farmers to invest on their own
  – Groundwater now provides the bulk of
    irrigation in Asia
  – Climate change, urbanization,
Zhanghe Reservoir, Hubei, China
                                               Water allocation and rice production in ZIS
                                                           (3-year moving averages)
                                                                                   irrigation release
                                800                                                                           1400
                                                                                   non-agricultural release
                                                                                   rice production
                                700                                                                           1200




                                                                                                                     production (1,000 metric tons)
reservoir water release (MCM)




                                600
                                                                                                              1000
                                500
                                                                                                              800
                                400
                                                                                                              600
                                300

                                                                                                              400
                                200

                                100                                                                           200


                                  0                                                                           0
                                      1966   1971   1976   1981     1986    1991       1996          2001
                                                                  year
5 Strategies to unlock value from
        Asia’s irrigation infrastructure
1.   Modernize for tomorrow’s needs
2.   Go with the flow
3.   Look beyond conventional PIM recipes
4.   Expand capacity and knowledge
5.   Invest outside the water sector
Strategy 1: Modernize
• Includes modernizing hardware (design changes)
  and software (institutional changes)
• More attention to environment

                CA – invest in groundwater for
                storage and drainage
                SEA – reconfigure paddy
                systems for multiple cropping,
                uses and ecosystem services
                SA – piped delivery systems,
                farm storage
Strategy 2: Go with the flow

Farmers innovate. Incorporate what they are
 doing into the management of irrigation

                   Sri Lanka example:
                   Traditional tanks
                   incorporated into canal
                   network designs
                   SEA – conjunctive use
                   SA – managed aquifer
                   recharge,
Strategy 3: Look beyond PIM

Promoted since mid 1980’s
What’s the scorecard?
PIM – Success or Failure?
                 Mukherji et al, 2009 (part of commissioned ADB irrigation study)




Performance indicators
ISF collection
Finance of WUA
Infrastructure state
Equity
Reliability/Adequacy
Participation                  Region         Success         Failure

Conflict resolution            S Asia         18              20                40%
Crop related impacts                                                            Success
                               E Asia         7               2
Livelihoods impact             SE Asia        12              24
                               C Asia         4               14
Strategy 3: Look beyond PIM
Alternatives:
  – Irrigation bureaucrats turned entrepreneurs in China
  – Service contracts – providers and users; private sector
  – Reform the irrigation bureaucracies themselves to
    manage the main system better
  For South Asia
  Re-engage government, especially in poor areas
  Incentivize performance based service delivery models
Strategy 4: Expand capacity and knowledge

• Train irrigation officials to recognize and
  respond to new realities, deal with social and
  political issues, and have eco-awareness

MASSCOT program of FAO that is helping
  irrigation bureaucracy do so

SA – reorient staff to changing rural realities
CA – new capacity
Strategy 5: Invest outside the sector

• Irrigation will largely become reactive rather
  than proactive as it was in the past
• Levers of change will often lie outside, e.g. in
  food or energy policies

SE Asia:
hydropower + irrigation
S Asia – roads, rural electricity
Central Asia:
Ag Policies, Hydropower
Thank you!
Challenge:
Simultaneously meet livelihood,
food and ecosystem objectives.

Tailor made solutions are needed
for each situation



1. Modernize for tomorrow’s needs
2. Go with the flow
3. Look beyond conventional PIM
   recipes
4. Expand capacity and knowledge
5. Invest outside the water sector
                   Water for a food-secure world

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Unlocking Value in South Asia's Irrigation, by David Molden, IWMI

  • 1. Unlocking Value in South Asia’s Irrigation David Molden Based on work by: Aditi Mukherji, Thierry Facon, And many others
  • 2. Main message 1 Irrigation has been important in Asia – Asia contains 70% of world’s irrigated area – Irrigation was key to the success of Green Revolution – This helped alleviate poverty and boost rural growth How important will it be?
  • 3. Growth in food demand 2000 – 2050 South Asia Water for a food-secure world
  • 4. Agriculture ET in 2000 and 2050 no water productivity gains Need to produce more food, but minimize extra water use – Change is needed South Asia East Asia Central Asia Water for a food-secure world
  • 5. Water for Food – 4 paths 1. Increase production in rainfed areas – scope for gains debated 2. Irrigation – expansion and productivity gains -good for poverty & food, but bad for environment 3. Trade – buy food from somewhere else – - but realistic to rely on trade? 4.Reduce waste and overuse from field to fork -but strong trends of diet change
  • 6. Main message 2 • Asia still needs to invest in irrigation – To raise land and water productivity – To feed a growing population – To adapt to climate change – Secure livelihoods and alleviate poverty – But within the limits posed by natural resource base What are those investments?
  • 7. Investing in Irrigation 2.5 320 280 2.0 240 July 2008 Food price index 200 1.5 160 Irrigation Living Planet index Jan 1.0 Freshwater 2009 120 World Bank lending for irrigation 80 0.5 40 0 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
  • 8. Irrigated investment & irrigated area - India Groundwater Trends of public expenditure in major and medium irrigation and net irrigated area under different sources in India 60 42 36 50 (billion US$, in 2000 prices) Groundwater Irrigated Area 30 Net irrigated area 40 Expenditure (million ha) 24 30 Canal 18 Irrigated Area 20 12 Expenditure US$ 10 Tank 6 Irrigated Area 0 0 1960 1970 1980 1990 2000 Expenditure Tanks Canals Groundwater Source: Amerasinghe et al
  • 9. Trend: Growing informal water economies Informal Formal Self-supply predominates Service providers dominate Vast numbers of tiny, primary Very few, but large primary water diverters from nature diverters of water from rivers, lakes Water institutions are local, Water institutions are few, formal, fragmented, informal legal bodies Intermediation in water services Very high degree of are low or absent intermediation in water provision Even if water is plentiful, it costs Even if water is scarce its free… money… Source: Tushaar Shah Water for a food-secure world
  • 10. Irrigation Pumps in Bangladesh and Vietnam The Pump Revolution
  • 11. US dollar per m3 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Chishtian sub-div. Mahi-Kadana Nachchaduwa Muda Rajanganaya Nile Delta Kourani Baria II Sunsari Morang * surface water and public wells Gorgo West Gandak Marchwar Lift Saga ** private wells Big Thompson Khageri Panchakanya Fryingpan Kankai Mogtedo Saldana Kourani Baria I Seyhan Coella RUT Across irrigation systems Torreon irrigation schemes Salvatierra Module** Value produced per unit ET Alto Rio Lerma * Cortazar Module* Salvatierra Module* Menemen Imperial ID Manisa Samaca Triffa Scheme, Sec.… Alto Rio Lerma ** Sarigol Figure 4: Standardised Gross Value of Production per unit water consumed by ETcrop Panoche WD Adala Bhairawa Lumbini Alasehir Turgutlu Cortazar Module** Situation Savili Underperformance of many large scale surface
  • 12. Causes of poor performance – Lack of accountability: Management Society Users Bureaucracy – Surge in individual pump/lift based irrigation – Failed attempts at institutional reform Benchmark irrigation performance making data publically accessible
  • 13. Main message 3 Adapt yesterday’s irrigation for tomorrow – Changing demography and dietary needs – To provide more ecosystem services, adapt to climate change • But the old systems do not cater to these demands – State built irrigation are under performing • Forcing farmers to invest on their own – Groundwater now provides the bulk of irrigation in Asia – Climate change, urbanization,
  • 14. Zhanghe Reservoir, Hubei, China Water allocation and rice production in ZIS (3-year moving averages) irrigation release 800 1400 non-agricultural release rice production 700 1200 production (1,000 metric tons) reservoir water release (MCM) 600 1000 500 800 400 600 300 400 200 100 200 0 0 1966 1971 1976 1981 1986 1991 1996 2001 year
  • 15. 5 Strategies to unlock value from Asia’s irrigation infrastructure 1. Modernize for tomorrow’s needs 2. Go with the flow 3. Look beyond conventional PIM recipes 4. Expand capacity and knowledge 5. Invest outside the water sector
  • 16. Strategy 1: Modernize • Includes modernizing hardware (design changes) and software (institutional changes) • More attention to environment CA – invest in groundwater for storage and drainage SEA – reconfigure paddy systems for multiple cropping, uses and ecosystem services SA – piped delivery systems, farm storage
  • 17. Strategy 2: Go with the flow Farmers innovate. Incorporate what they are doing into the management of irrigation Sri Lanka example: Traditional tanks incorporated into canal network designs SEA – conjunctive use SA – managed aquifer recharge,
  • 18. Strategy 3: Look beyond PIM Promoted since mid 1980’s What’s the scorecard?
  • 19. PIM – Success or Failure? Mukherji et al, 2009 (part of commissioned ADB irrigation study) Performance indicators ISF collection Finance of WUA Infrastructure state Equity Reliability/Adequacy Participation Region Success Failure Conflict resolution S Asia 18 20 40% Crop related impacts Success E Asia 7 2 Livelihoods impact SE Asia 12 24 C Asia 4 14
  • 20. Strategy 3: Look beyond PIM Alternatives: – Irrigation bureaucrats turned entrepreneurs in China – Service contracts – providers and users; private sector – Reform the irrigation bureaucracies themselves to manage the main system better For South Asia Re-engage government, especially in poor areas Incentivize performance based service delivery models
  • 21. Strategy 4: Expand capacity and knowledge • Train irrigation officials to recognize and respond to new realities, deal with social and political issues, and have eco-awareness MASSCOT program of FAO that is helping irrigation bureaucracy do so SA – reorient staff to changing rural realities CA – new capacity
  • 22. Strategy 5: Invest outside the sector • Irrigation will largely become reactive rather than proactive as it was in the past • Levers of change will often lie outside, e.g. in food or energy policies SE Asia: hydropower + irrigation S Asia – roads, rural electricity Central Asia: Ag Policies, Hydropower
  • 23. Thank you! Challenge: Simultaneously meet livelihood, food and ecosystem objectives. Tailor made solutions are needed for each situation 1. Modernize for tomorrow’s needs 2. Go with the flow 3. Look beyond conventional PIM recipes 4. Expand capacity and knowledge 5. Invest outside the water sector Water for a food-secure world