Improving Agriculture Water Productivity in the Region

“Investment in Irrigation in MENA”

Lessons from World Bank portfolio and water sector studies

Presented by Qun Li

Senior Operational Officer- World Bank

Challenges for Agriculture Water Management in MENA

• The most water-scarce region:- countries (10% of global land mass) receive only

2% of average annual rainfall; - below 1000 - 500 M3/person/Year;- contain 0.3% of the global annual renewable

water sources • Climate change impacts:- by 2015, predicted to be below the level of 500

M3/person/Year for most countries;- by 2050, decline by 50% - below severe water

scarcity level• Rapid growth of water demand:- Population growth, economic growth, and

Food insecurity• I &D plays a critical role in the allocation of

the country’s limited water resources- Agriculture is the largest water user (88% in

MENA): its importance for employment, income and food security:

- Underground aquifers are a major water resource in many countries; some irrigation systems depend largely on groundwater (90% in Libya) 2

Other challenges:• Inadequate public awareness on water

conservation; • Urgent needs to improve water

productivity, change the traditional approach for I&D investment and management;

• Competition between sectors and lack of cooperation between water and agriculture sectors;

• Weak institutions and water Governance

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Increased frequency and intensity of

extreme climate events

IRAN•Alborz Integrated Land and Water Management

IRAQ•Emergency Community Infrastructure Rehabilitation Additional Financing

MOROCCO•Oum Er Rbia Basin Irrigated Agriculture Modernization•Irrigation Based Community Development

TUNISIA• Second Natural Resources Management•Northern Tunis Wastewater•Second Water Sector Investment•Fourth Northwest Mountainous and Forested Areas Development

DJIBOUTI •Rural Community Development and Water Mobilization

LEBANON •Community Development

MENA I&D Projects or with Agricultural Water component (closed & on-going projects from 2001-2011)

YEMEN•Water Sector Support Project•Groundwater and Soil Conservation•Sana’a Basin Water management•Irrigation Improvement Project•Land and Water Conservation Project•Rainfed Agriculture and Livestock Project•Southern Governorates Agricultural Privatization

EGYPT•National Drainage I, II, & Additional Financing •Farm-level Irrigation Modernization •Integrated Irrigation Improvement and Management•Enhanced Water Resources Management•Irrigation Improvement

WB Regional Portfolio Review: Brief Results MENA I&D Projects from Year 2001-2011

The regional portfolio review covered IBRD and IDA projects: Egypt (5), Iran (1), Iraq (1), Lebanon (1), Morocco (2), Tunisia (4), Yemen (7), and Djibouti (1): the examples from MENA Portfolio:

•Agricultural modernization in Morocco’s “Oum Er Rbia” Basin: – Switch to continuous flow and drip irrigation– On-farm technical assistance to increase productivity and

market access for higher-value crops

•Groundwater conservation in Yemen’s Sana’a Basin (SBWMP and GSCP):

– Reduce conveyance losses by replacing irrigation ditches with pipes

– Introduce new irrigation technologies– Train WUAs 5

Regional Portfolio Review: Brief Results MENA I&D Projects from Year 2001-2011

Another Examples from MENA:•Improving large-scale irrigation in Egypt (IIIMP):

– Rehabilitate main canals and drainage systems– Introduce flow measurement and continuous flow– Develop Integrated Water Management Districts

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WB financed about 22 operations in irrigation and drainage (I&D) with strong engagement in I&D and agriculture development:

According to project documents:• Investment amounted to US$1.00 bill ion;

• covering I&D area about 720,000 ha – developed or rehabilitated;

• establishing/strengthening 189 WUAS, 4,900 WUGs, 68 collector associations and 20,000 marwa committees; and

• increasing agricultural productivity between 8-71 %.

Regional Portfolio Review: Brief Results MENA I&D Projects from Year 2001-2011

Early I&D projects emphasized increasing agriculture productivity through rehabilitation and development of I&D systems, and expansion of irrigated areas,which led to: • increasing surface irrigation water use, especially in water

scarcity areas; • the exploitation of the fossil groundwater aquifers

(increased wells and exploited deeper aquifers), and increased pumping cost; and

• unsustainable water use, and caused social tensions and conflicts

Regional Portfolio Review: Brief Results MENA I&D Projects from Year 2001-2011

There is a major shift in recent I&D projects to support the sustainable water resources development through promoting IWRM, water conservation, linking agricultural water management to broader, integrated community-based water resources management approaches.

But it still without a comprehensive approach for increasing agriculture water productivity (kg/m3) and encouraging water saving by integrating engineering structural measures with agronomic and institutional management and policy reform in addition to lack of on-farm water demand measurement and management component;

Regional Portfolio Review: Brief Results MENA I&D Projects from Year 2001-2011

Lessons from the Regional Portfolio Review

• Unless the improvements in water use efficiency are linked to comprehensive water saving management, there is no assurance that consumptive use of irrigation water will actually be reduced and water productivity will be fully improved;

• It is critical to shift the investment focus from water supply construction to volumetric water demand and consumption.

• Increase investment in real water saving awareness raising, water saving technologies that reduce consumption, particularly non-beneficial ET and non-recoverable losses, changes in institutional set-up and technical and operational procedures;

• There are few effective IWRM instruments in project implementation. There is a need to shift policy dialogue from project investment and the support of large parastatal organizations to the institutional and economic instruments that align incentives for agriculture water saving through service providers and users at farm level; 10

Lessons from the Regional Portfolio Review• Decentralization and increased community involvement

have shown to be important in all stages of the projects. The establishment of WUAs built a foundation for agriculture water management at the farm level, but all WUAs need serious improvement with more authority, financial and technical capacity, and effective cooperation with irrigation agencies to keep functioning, and be really responsible for O&M of on-farm I&D infrastructure and volumetric water consumption management;

• Climate resilience was not considered in the concept and design of earlier I&D projects, the new I&D project should integrate the CC adaptation and mitigation measures into all investment activities to support a sustainable green growth in the region.

The key message of the WB reportIt is necessary to take an integrated approach that emphasizes demand-side water consumption measurement and management, especially at the farm level. This will involve:

• the awareness of comprehensive water saving and water demand measurement and management concepts;

• implementing new technologies for better monitoring and management of water consumption and productivity at farm level;

• developing and improving I&D infrastructure with the integrated water supply and demand management system (need to install a full water measurement system), that not only for more reliable, equitable, and flexible water service delivery, but also for better integrated water demand/ consumption measurement and management;

• customized institutions and procedures for the integration/cooperation with end users; and ensuring that water-saving objectives are aligned across multiple sector and scales, from the national to the basin, system, and farm levels.

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The key message of the WB report

Many countries in the region are already aware of potential solutions to water scarcity, but yet many issues persist in the region, because:

• solutions have to update all the time (evaluate with the updated technologies and policies), too often been pursued on a piecemeal basis;

• it is difficult to implement demand-side management in the absence of advanced water use monitoring and measurement technologies and I&D infrastructure able to ensure good water service delivery;

• the new challenge of climate change has not always been considered; and

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Adaptive engineering Water Saving measures

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Five key messages from our study1. Do much more to measure and manage agriculture water productivity

(particularly water consumption and ET). Provide a broad perspective – and recognize that effective agriculture water demand management is currently not working well in the region yet.

2. Remove disincentives to efficient water use at the farm level – encourage action toward technologies and financial incentives for improving irrigation efficiency; reducing non-beneficial water consumption; better cropping options; targeted extension; etc.

3. Set water supply and demand/consumption management goal at the national, basin-scale, system and farm HH level to increase agricultural water productivity in both physical and economic terms

4. Develop tailored package of measures that respond to local conditions, capacity, and current practices

5. Mainstream consideration of climate change and resilience in I&D and agriculture development investment. 15

Opportunities for Enhancing Policies and Investments

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CONVENTIONAL ENHANCING IMPLICATIONS• Measure water

withdrawals/supply• Measure & manage water supply and

consumption, evapotranspiration (ET)•Open, transparent water accounting to inform decisions and water users

• Improve irrigation delivery efficiency: reduce “losses” between diversion & plant

• Improve water productivity (WPET): yield, biomass, or value per unit of water consumed

• Target investments and subsidies to raise real water productivity

• Financial irrigation charges: cost recovery for government expenditure based on areas ($/ha) for most surface water irrigation without water measurement system

• Water quota allocation and reliable water service delivery as primary instruments for consumption management. Volumetric water change, Strengthen farmer financing for O&M.

• Progressively modernize operations and infrastructure with improved water measurement system. Irrigation charges to fund O&M, tailored to different situations. Develop WUA financial capacity and cost-sharing.

• Increasing participation: the establishment of water user’s organizations to transfer irrigation O&M management, but not at full operation yet

• Develop the integrated water supply and demand management system: customize institutions and procedures for the integration/cooperation with end users, and strengthen collective action by farmers in improving irrigation

• Participatory diagnostics, better communications, development of WUA technical and financial capacity for implementation and operation, and joint water management

• Competition; water saving to reduce farmers’ water use, reallocate without compensation

• Share benefits from shifting water between uses

• Facilitate equitable, win-win water transactions, including equitable mechanisms for temporary transfers, e.g.. drought compensation

• Top-down well licensing to control groundwater abstraction

• Support local aquifer management: consensus-building, regulation/rules crafted to fit local conditions at each level

• Inform, facilitate, advise local water governance; responsive enforcement to reinforce local regulation

Develop Tailored Package of Measures

1. Water Demand Options: The high-tech remote-sensing/ET measurement and water delivery monitoring systems provides the opportunity for a more strategic integration of the benefits of well-developed water supply investments with a new farm- and irrigation system-level water saving/demand management focus (irrigation mapping, crop mapping, ET mapping, water accounting, etc.). With careful implementation, these new technologies can be deployed to achieve both water savings and higher yields and economic productivity, with increased incentives; improved irrigation Efficiency and services; land Management; and cropping options.

2. Institutional Options: Strengthen Government Agencies; Improve Accountability and Transparency; Improve Dispute Resolution Mechanisms; Build Capacity; and Decentralize Management.

3. Allocation Options: Win-win Water Transactions (Swaps, Subsidies, Drought Compensation, Water Banking, Dry Year Contingent Contracts, Tanker Markets, and Well Buyouts).

4. Water Supply Options: Water Reuse and Recycling; Renewable Energy Desalination; Reservoir Storage; and Transboundary Agreements.

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Summary of Recommendations

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Farmer’s Association and WUAWater Measurement and volumetric Water Charges implemented at the farm household level

Thank You

The Study was supported under the World Bank-FAO Cooperative

Program