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Uniting agriculture and nature for poverty reduction
PPPs for Irrigation: Framework and Insights from
Ghana and Tanzania
Ruth Meinzen-Dick
Ninth International Dialogue on Water in Agriculture“Public-Private Partnerships in irrigation: experiences, benefits and risks”
June 1-2, 2016, Bonn, Germany4
1. Background on the project2. Background on PPPs in Tanzania3. Case study: Kilombero Plantations Limited
(Tanzania)4. Project framework and comparison of cases5. Findings and implications
Overview
1. Public Private Partnerships (PPPs) for irrigation is becoming a widely accepted model for financing irrigation, supported by the World Bank, IFC, ADB and directly by governments
2. Rationale:o Overcome the fiscal limits of government investment, bringing
in private sector financingo Bring in private sector know-how and market linkages
3. Little knowledge on who wins and loses and how to ensure that PPP do not leave local populations worse off
Case studies in Ghana and Tanzania
Background
Uniting agriculture and nature for poverty reduction
Assessing Models of Public Private Partnerships for Irrigation Development in Africa (AMPPPIDA)
• Collaborative project of
– International Food Policy Research Institute
– Institute of Resource Assessment, University of Dar esSalaam,
– Institute of Development Studies, University of Ghana
– Ghana Irrigation Development Authority
• Funded by DfID/ESRC
Framework for Assessment of PPPBalancing risks and responsibilities
Activity Government Firms FarmersAuthorization
Planning
Financing
System construction
System operation
System maintenance
On-farm construction
Technical advice
Production
Processing
Marketing
Risks assumed
Benefits assumed
Framework for Assessment of PPPBalancing risks and responsibilities
Activity Government Firms FarmersAuthorization
Planning
Financing
System construction
System operation
System maintenance
On-farm construction
Technical advice
Production
Processing
Marketing
Risks assumed
Benefits assumed
Definition of PPPs: Requires sharing of risksOther arrangements are “outsourcing”
• Only 331,490 ha irrigated of 29.4 M ha potential in 2010• Inadequate financial capital and human resources, slow
economic growth• Southern Agricultural Growth Corridor of Tanzania (SAGCOT) 2011
• Involve private sector in agricultural production, input provision, crop marketing, value chains
• $1.3 billion public and donor to attract $2.1 billion pvt sector • Aims to bring 350,000 ha into commercial production • By Nov 2012, 391 village land use plans “freed up” 912,000 ha
for investors (15% of the land under village control) • Intent to shift 17.9% of total area land under village to the
‘General Land’ category for private investment• Big Results Now
• Presidential elections
PPPs in Tanzania
Uniting agriculture and nature for poverty reduction
Kilombero Plantations Ltd (rice scheme)
• Fertile Kilombero valley, good for rice farming
• Redevelop Mngeta Farm, joint venture betw North Korea and Tanzania started mid-1980s
• 2007 KPL PPP betw Rufiji Basin Development Authority (RUBADA) and Agrica (UK co, investors from Norfund, Capricorn Investment Group, and African
Agricultural Capital) + DfID, USAID, JICA support
• 5818 ha estate; 1430 ha irrigated, 3000 by 2016
• 3200 outgrower farmers not irrigated but get SRI advice, link to inputs and microfinance
445, 986 ha of arable land
Uniting agriculture and nature for poverty reduction
KPL Findings
• Land tenure: Former state farm re-occupied, compensation to vacate, both sides unhappy
• Price volatility: company and farmers losing out
• Taxation policy on imported equipment
• Multiple viewpoints, “realities”
Uniting agriculture and nature for poverty reduction
Netmapping• Overall:Who influences Public Private Partnership
for Irrigation in xxx?• Links:
– Technical advice – Funding – Inputs – Formal oversight – Political/ social influences
• Power/Influence:– How powerful is each actor over PPP in Irrigation
Development in xxx?
KPL Case Example
Activity Government KPL FarmersAuthorization
Planning
Financing + Donors+MFISystem construction
System operation
System maintenance
On-farm construction
Technical advice
Production Unirrigated
Processing
Marketing
Risks assumed
Benefits assumed
Madibira Case Example
Activity Government MAMCOS coop FarmersAuthorization
Planning
Financing ADB loan Share capital
System construction
System operation
System maintenance
On-farm construction
Technical advice
Production
Processing
Marketing
Risks assumed ? ? ?Benefits assumed ? ? ?
Modified Framework
ActivityDonors Government Firms FarmersA B A B C MFI A B C 1 2
Authorization
Planning
Financing
System construction
System operation
System maintenance
On-farm construction
Technical advice
Production
Processing
Marketing
Risks assumed
Benefits assumed
1. Difficulty in Aligning Profit and Development Objectives
2. Information on Water Availability and Use (competing uses, climate change)
3. Needs beyond Irrigation Infrastructure (technology, taxation, training, markets, inputs)
4. Land and Water Rights
5. Dominance by Governments / Limited Involvement by Farmers, Communities & Markets
6. Challenges to Build Trust (history matters)
Key Challenges Identified
Uniting agriculture and nature for poverty reduction
Implications
• Add finance to interdisciplinary mix for irrigation
• Is irrigation likely to be profitable for investors? Logic for state investment, less for private sector.
• “Beyond panaceas”
– Need to engage with complexity
– Tools for understanding complex arrangements
– Range of options for “PPP” arrangements
• Time: Needed to build trust, but time/cost tradeoffs
Uniting agriculture and nature for poverty reduction
Further Resources• Bernier, Q. and R. Meinzen-Dick. 2015. Public private partnerships for
irrigation: Expanding access or increasing inequality. Washington, D.C.: International Food Policy Research Institute (IFPRI). https://www.ifpri.org/publication/public-private-partnerships-irrigation-expanding-access-or-increasing-inequality
• http://www.ifpri.org/project/assessing-models-public-private-partnerships-irrigation-development-africa-ampppida