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| Title
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Incentives for financing the maintenance of irrigation and drainage systems
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| Subtitle
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| Author
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van Hofwegen, P. J. M.
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| Editor or Organisation
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GIZ
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| Year
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2000
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| Keywords
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irrigation systems, maintenance, cost, financing, financial management, services, institution
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| Country
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developing countries
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| Type
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publication
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| Language
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English
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| Table of Contents
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1. Introduction
2. Farmer incentives to pay for services
3. Framework for financial management
4. Institutional consequences
5. Summary and conclusions
References
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| Abstract
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In the past decades, schemes have been developed and improved in many countries without putting adequate mechanisms in place that ensure the financing of operation, maintenance and improvement of infrastructure. Beside user fees, for many irrigation and drainage agencies an important part of their budget originates from government contributions and subsidies. The fees are often insufficient to cover even the regular O&M costs and the collection mechanisms are often ineffective. These often poor financing conditions ultimately result in a gradual degradation of the infrastructure, declining service levels and a reduced willingness for users to pay their contributions. To bring this vicious circle of degradation process to a halt appropriate incentive structures have to be identified and implemented for adequate financing of system maintenance to ensure reliable delivery of irrigation and drainage services. After looking at farmers' incentives to pay for irrigation and drainage services, this paper presents a framework in which the aspirations of the farmer/clients are incorporated into the management system of the irrigation and drainage agencies. One of the important incentives is reliable and cost-effective service provision by the irrigation agencies. Finally the institutional consequences for such approach are presented.
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| Permission
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Yes
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| Category
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Enabling Environment, Economics
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| File
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