| In
Asia, massive investments in water resources development,
in dams and irrigated schemes by
governments and in wells by private sector farmers,
have successfully alleviated poverty. In Africa, failed
irrigation projects in the 70s and 80s that cost as
much as US$ 25 thousand per hectare have led to unwillingness
to invest. Modern irrigation systems built in Africa
in the 90s though, with costs ranging from only 4
thousand for upgrading to 6 thousand US$ per hectare
for new development have proven successful with returns
on investment of 10% or higher. Rice-based schemes
(where productivity is at least 3 to 4 tonnes per
hectare) and mixed cereal-horticulture schemes have
proven to be viable. Irrigated horticulture is proving
highly profitable and a fast expanding sector, driven
by private sector investments.
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| ACTIONS
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| Coping
with climate variability requires investment
in water storage, through large and small dams. |
Farmers need to be recognized as the key private
sector actors; they are the primary investors
in groundwater development and small scale irrigation
in Asia and Africa.More than half the irrigated
area in Africa is privately financed and managed.
At farm level irrigated agriculture is a complete
private sector enterprise. Smallholder farmers
invest in water control when they have access
to profitable markets, technology and investment
resources, as shown by their fast response to
opportunities in (peri)urban agriculture as
well as horticulture for export.
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Narmada Dam, India
Photograph by Frank Rijsberman, IWMI |
| Farmers
are the private sector and will invest in water
and land development, management and conservation
wherever this is a viable business proposition.
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Farmers need to be recognized as the key private
sector actors; they are the primary investors
in groundwater development and small scale irrigation
in Asia and Africa.More than half the irrigated
area in Africa is privately financed and managed.
At farm level irrigated agriculture is a complete
private sector enterprise. Smallholder farmers
invest in water control when they have access
to profitable markets, technology and investment
resources, as shown by their fast response to
opportunities in (peri)urban agriculture as
well as horticulture for export.
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| Returns
to agricultural water investment increase with
access to markets and when combined with hydropower,
livestock, aquaculture or drinking water. |
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Multi-functional investments offer scope for
increased returns. While multiple-use of water
comes naturally to smallholders and the rural
poor, governments, donors and NGOs are still
often focused and organized around single objectives.
In the Nile basin the water demands of livestock
(for drinking and feed/fodder) are as high as
or higher than those of people (for drinking
and crop-based agriculture). Links are both
through prevention of natural resource degradation
(overgrazing, soil erosion, pollution of water
sources) as well as increased water productivity
for fodder production (rainfed or irrigated).
Low-intensity fisheries and aquaculture in reservoirs
or farm ponds can contribute as much as 20%
of the value of the crops grown to overall output.
High intensity aquaculture has much higher water
productivity than most crops and in many closed
basins competes for scarce water resources.
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| Making
an asset out of wastewater holds the promise
to make sanitation affordable for poor people.
Meeting the MDG on sanitation
for Africa requires innovative approaches. Reduction
in the African burden of diarrhea of 25 million
DALYs per year may become more affordable when
the wastewater is treated as a valuable resource.When
wastewater is treated it will be reused. Safe
re-use in peri-urban agriculture has such a
high value that it may help make sanitation
affordable.Technologies are available but remain
largely untested.This is a major challenge and
opportunity for research that is a high-potential
investment opportunity and could well be an
option for developed countries with a looming
water stress situation in the near future.
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FACTS AND FIGURES
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Analysis
of 346 irrigation investment projects
completed in the last 40 years show that
successful projects in Asia and Africa
have similar costs of around 4 to 6 thousand
US$ per hectare.
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Dependance
on government for O&M has been a major
reason for poor irrigation performance.
Financial autonomy, with costs for O&M
recovered from users, benefits the poor,
as better performing schemes enable the
poor to produce more.
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Modern,
productive and well managed irrigation
systems have a high rate of success, measured
as returns to investment of 10% or better.
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Peri-urban
agriculture supplies more than 90% of
the vegetables consumed in African cities.
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Over
20 million peri-urban farmers are engaged
in wastewater agriculture.
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DEBATES
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Need
for more water development: are dams bad?
Dams are not “good” or “bad”
- large dams can be good and small dams
can be bad.The point is to distinguish
between good dams - that have positive
returns on investment when all impacts
are accounted for and benefits shared
equitably - and bad dams. |
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Should
farmers pay for water? Where
irrigation schemes do not raise the cost
for O&M, farmers pay the price in
poorly performing systems. Well performing
systems enable farmers to pay. Farmer
involvement, and empowered farmers, are
the key to breaking this gridlock. |
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Is
re-using wastewater irresponsible?
It happens anyway: over 20 million peri-urban
farmers are engaged in wastewater agriculture.The
point is to make that safer while maintaining
the livelihood benefits. The promise,
and the challenge, is in linking the approaches
to (eco-)sanitation with the re-use for
agriculture.
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Reservoir Storage
per Capita (m3/cap),
2003
Source: World Bank |
Unit Costs versus
Project Size - whole sample,
1967-1996
Source: Africa Investment Study, IWMI
and partners |
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