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Finacing Water for Agriculture

Finacing Water for Agriculture
Finacing Water for Agriculture

PROGRESS REPORT No 1

Contribution to the Task Force on Financing Water

chaired by Angel Gurria

and submitted to the 4th World Water Forum,

Mexico, March 2006

March 2006

FINANCING WATER FOR AGRICULTURE

Prepared by the

Working Group on Financing Water for Agriculture

Financing Water for Agriculture

Progress Report No 1

Outline of contents

Acronyms 4 Acknowledgements 4 Executive summary 5 Preface 12

I. Setting the scene

1. Overview & Scope of Work 13

1.1. Overview 13

1.2 Origins of Working Group 14

1.3. Scope of work 15

1.4. Distinctive features of financing water for agriculture 16

2. Financing water for agriculture: the starting point 18

2.1 Size of financing needs 18

2.2. Current sources of finance 19

2.3. Profitability of investments 19

2.4. Public and private boundaries 20

2.5. Pricing and cost recovery 21

2.6. Attitudes of international agencies 22

2.7. Governance reforms needed 22

II. Feedback from the Consultations

3. Views from the Regions 24

3.1. Sub-Saharan Africa 24

3.2 Asia 27

3.3 Middle East and North Africa 30

4. Themes and Issues 32

4.1. Diversity and complexity 32

4.2. changing social and economic roles of agriculture 32

4.3. market distortions 34

4.4. Externalities & public goods 35

4.5. Good and bad regulation 36

III. A Future Agenda

5. Transformation: new roles for old institutions 37

5.1. The changing environment 37

5.2. Realism in reforms 38

5.3.Transforming irrigation agencies and water providers 39

5.4.Empowerment of Water User Associations 40

5.5 Capacity building to support reform 42

6. Adapting conventional sources of finance 43

6.1. More effective Government budgets 43

6.2. New roles for aid 43

6.3. IFI lending 44

6.4. Cost recovery from users 46

7. Mitigating Specific Risks: the key to attracting new funding sources 48

7.1. Sector-specific risks 48

7.2. Co-financing solutions for infrastructure 51

7.3. Public-Private Partnerships 53

7.4. Term finance for agriculture 56

7.5. Microfinance 57

8. Summary of key points and agenda items 60 Annexes

1.Bibliography of key literature and works cited 62

https://www.doczj.com/doc/604980998.html,position of Working Group, modalities and participation 64

Acronyms & abbreviations

AfDB African Development Bank

AsDB Asian Development Bank

DFI Decentralised financing institution

FAO Food and Agriculture Organisation (of the United Nations)

GWP Global Water Partnership

IADB Inter-American Development Bank

IsDB Islamic Development Bank

IFAD International Fund for Agricultural Development

IFC International Finance Corporation

IFI International Financial Institution

IPTRID International Programme for Tropical Research on Irrigation & Drainage IWMI International Water Management Institute

MFI Microfinance institution

PPP Public-Private Partnership

WTO World Trade Organisation

WWC World Water Council

Acknowledgements

The sponsors of the Working Group would like to thank the many organisations and individuals whose material support made this venture possible. This is a Progress Report prepared for the 4th World Water Forum in Mexico, March 2006. Further work will be carried out after the Forum taking into account the views expressed at that event. The report has been prepared by Jim Winpenny with contributions from Alan Hall (GWP) and Paul van Hofwegan (WWC).

This Progress Report does not necessarily reflect the official position of each of the sponsors in every respect. It is offered as a distillation of information received, and as a contribution to future policy-making on this topic.

Executive Summary

The Working Group on Financing Water for Agriculture was convened by a number of international sponsors1 to consider the specific problems of financing water for agriculture and to make proposals to improve its funding prospects. Water for agriculture is significantly different from water for household use, and deserves separate consideration and its own solutions.

The WG took a broad view of agriculture, including related rural sectors and communities and households using water for productive purposes. The topic includes public irrigation schemes, groundwater development, use of catchments, improvements of rainfed systems, processing, aquaculture, and other rural activities involving the use of water.

The Broad Picture

In the coming decades feeding the growing world population and satisfying its need for raw materials will call for increased output from both irrigated and rainfed agriculture. Some of this will come from an increase in the irrigated acreage, though the scope for this will be much more limited than in the past. The larger part of extra output will have to come from the more efficient use of water resources already being exploited, epitomised in the slogan more crop per drop.

Agriculture is by far the largest user of the world’s water and can expect growing competition at the margin from other sectors for its use, particularly from the encroachment of growing cities onto farmland. More crop per drop implies the reduction of losses from the transport and distribution of irrigation water, and its more efficient application to crops. The more efficient use of water in rainfed systems will have a major part to play, in some cases supplemented by irrigation water. Communities and households will need to capture more water through catchments for local productive purposes.

These developments call for major changes in the way in which water is used in agriculture and rural activities, and have major cost and financing implications. It has been estimated that the annual costs of managing water resources to meet the MDG Hunger goals could lie in the region of $45-50 billion over the next ten years, rising to $65-70 billion thereafter. These costs relate to conventional irrigation, upgrading rainfed systems, and complementary investments in soil and water management, research, extension, etc. Investment is needed in the rehabilitation and adaptation of present infrastructure as well as the creation of new structures and systems. Some investment, especially in major infrastructure, will fall to governments and public agencies. Much, however, will be undertaken by private farmers at all scales and of varying types. Water for agriculture is currently financed from a mixture of sources.The prospects for a major expansion of government subsidies or guarantees are not bright, given fiscal

1 GWP, WWC, World Bank, FAO, IFAD and IWMI.

constraints and the many competing claims on the public purse. However, other potential sources – ODA, MFI loans, commercial bank loans, small-scale informal sources, etc –are likely to be in more elastic supply. Finance of all kinds will, however, be conditional on supportive policies, reformed institutions, sound projects and creditworthy borrowers. In order to attract the required amount and types of funds the sector as a whole will need drastic reform.

One of the fundamental obstacles the sector faces in attracting finance is the universal fact that irrigation water provided from public schemes is either free or massively under-priced. Free or cheap water for farmers is an ingrained habit which in many countries is seen as a necessary part of national policies of cheap food and food self-sufficiency. Such policies have a strong emotional and political appeal, but the use of cheap water in their pursuit may be unsustainable and could produce distortions which become self-destructive. The Aral Sea is an extreme example of the social and environmental results of the reckless use of water for irrigation.

Food security, which is an understandable concern of governments, entails universal access and entitlement to food, a good national system of storage and transport, and purchasing power to make imports as required. Barriers to trade in foodstuffs threaten food security and induce governments to follow policies of self-sufficiency which lead to an unsustainable and uneconomical use of water. As a step in the right direction the UN should take the lead in excluding staple foodstuffs from any future cases where economic sanctions were imposed on a country.

In most cases irrigation water prices are well below the cost even of operating and maintaining the infrastructure, and make no contribution to recovering capital costs. This does not discourage farmers from investing in facilities for their own private use, but does explain why there has been so little commercial finance for the supply of irrigation water for sale. Many public irrigation agencies are effectively bankrupt and have difficulty attracting finance without large public subsidies. In this situation not enough new and replacement investment takes place and the infrastructure is condemned to a lingering death.

Financing prospects also depend on forces outside the control of farmers and their national governments. The prices of internationally-traded crops are set in world markets, and even domestically-consumed products are influenced by external trading conditions. International trade is not a level playing field: countries use a combination of import and export barriers, export subsidies and exchange rate practices to influence the terms of trade in their favour. Developing countries often complain about the trading practices of others, though some of them gain from preferential access to important markets. Complexity: no “one size fits all” solutions

Water is used in agriculture in a great variety of situations: the popular image of rice farmers working in paddy fields in large public irrigation command areas only focuses on part of a large mosaic, each component of which needs to be properly funded. Aside from large public irrigation schemes, a major part of this sector consists of privately-financed tubewells using groundwater. Commercial farms and estates often have their own

diversion and storage structures. At the other extreme are small farmers and rural households using various sources including catchments, some temporary, or in combination. The sector is complex, and proposals should avoid “one size fits all” solutions. One example is the growing importance of women farmers, who represent a specific target group for finance.

Financing also needs to recognise the many different functions entailed in water for agriculture. Apart from providing water from surface or underground sources for irrigating crops and watering livestock, the topic includes drainage, water quality management, the enhancement of rainfed farming, aquaculture, multipurpose projects including flood control and hydropower, and water supply to rural households for productive use, amongst other aspects. Agriculture also performs social functions which may justify public subsidy. Farming is a social safety net, sustaining both dependent families and returning migrant workers in their retirement, sickness or unem ployment. The links and synergies between these different aspects are stressed in the Integrated Water Resource Management approach which is rapidly gaining ground among policymakers. The creation of IWRM data, plans and coordination capacity itself needs proper funding. Some of the abovementioned functions are easier to finance than others, and for certain of them (e.g. provision of “public goods” such a s flood control and data collection) public funding will be necessary. The various constituent parts of water for agriculture should hang together financially.

Change is urgent and unavoidable

The future shape of water supply for irrigation will be determined by a growing scarcity of water and competition for its use. Given the high degree of physical and economic water scarcity and the growing demands and competition for water from other sectors, there are fewer opportunities to expand irrigated areas. The emphasis must therefore shift to improving the productivity of water, and access to water by poor people, within the overall framework of an integrated, holistic, approach to water resources management. The next generation of investments will be different from the last. On present trends there will be few new publicly financed irrigation schemes involving surface water systems, due to the high and rising cost of new schemes, low agricultural commodity prices which depresses economic returns, environmental costs of water demand on rivers and aquifers, severe pollution from poorly managed irrigation schemes, and the fiscal constraints on continued public funding. Instead, the keynote actions are modernisation & rehabilitation of current systems, improved operation and management and a review of the roles of institutions involved in irrigation.

Urbanisation is changing the economic and social environment of agriculture. On the one hand it creates a growing demand for crops and products produced on a commercial scale and to the standards expected by a sophisticated urban market. This is increasingly the domain of highly capitalised and commercially-oriented farmers, well able to afford the necessary water infrastructure. But there is another side to urbanisation, where workers (usually male) migrate to the cities in search of jobs, leaving their dependent families behind on farms to survive on remittances, supplemented by subsistence farming.

Transformation of institutions: new wine in new bottles

Existing irrigation agencies and other supply-side agencies will need to change to adapt to these new demands. They also have historical legacies of failure and inefficiency to recoup. Reform programmes should be sufficiently ambitious and challenging, but also realistic, and it is na?ve to expect the reform agenda to be driven exclusively by the state or existing vested interests. The reform movement needs to involve stakeholders from many walks of society, and be eclectic in its choice of pathways and models, choosing what works, even if it is not ideal.

Irrigation and other supply-side agencies need to critically review what they are there to do (their “mission statement”) in the light of changing demands on their services, and the growth of broader concerns for poverty-reduction, environmental sustainability and other factors. They should look more broadly at who their stakeholders are, listen to their core clientele - the farmers - and become more responsive to these various demands. They should be willing to take account of criticisms made and to make appropriate changes, which is the essence of accountability. Finance of all kinds will, however, be conditional on supportive policies, reformed institutions, sound projects and creditworthy borrowers. In order to attract the required amount and types of funds the sector as a whole will need drastic reform.

As for Water User Associations, the trend to give them more delegated responsibilities needs to be accompanied by sufficient delegation of powers (“voice and choice”) to enable the WUAs to function effectively in the new environment.

If serious changes and reforms are to be made in agricultural water institutions, a strong focus will be required on capacity development, including participation, empowerment, technical assistance and organisational development. The re-education and training of staff is an important part of this. Staff exchanges, benchmarking, “south-south” cooperation, twinning, and other kinds of technical assistance all have a potential role to play.

Adapting conventional sources of funds

Much of the current flow of finance for investment in water for agriculture comes from governments and parastatals, donor agencies and IFIs. Recurrent costs (O&M) are covered by government subsidies and user charges. These will remain the first recourse of the sector in future. However, future flows even at current volumes, let alone increased amounts, cannot be taken for granted without changes in the way the sector is operated. The funding sources themselves will need to review the way they work in this area in order to play their part in supporting the needed changes.

Revenue raised from users is a grossly under-tapped source of finance with great potential, and is the only really sustainable source of finance for recurrent operations. However, service agencies will need to be more customer-oriented and provide a better service if this potential is to be realised. Increased revenues from users will be a measure of the reforms, as well as a contributor to them.

The re-evaluation could appropriately start with governments. Their budgets for this sector are often underspent, and tend to be largely spent on wages and salaries at the expense of materials and replacement items. Future spending should be more functional to support necessary reforms. Departments should examine the reasons for any underspending that occurs and take action to remove administrative blockages. External aid will continue to be needed in this sector, though on a more selective basis than in the past. Donor and lending agencies have much to learn from the past disappointing performance of many agricultural projects. Aid is likely to be appropriate in the following roles: support for research and the collection and dissemination of information; facilitation rather than direct provision; leverage and catalysis rather than blanket funding; training and capacity building; providing initial equity & “seed” capital; dialogue & advice on improving the enabling environment, etc.

IFIs are re-positioning themselves for lending to the improvement and modernisation of existing irrigation systems, rather than creating new ones. So far, experience in this new style of operation is limited. Although surface irrigation is likely the be the largest component of IFI lending for water management, there are also major financing needs for groundwater development, drainage and water quality management, rainfed agriculture and multi-purpose operations.

The appraisal, planning and implementation of dams and other major works financed by IFIs and other lenders now has to conform with much more comprehensive and rigorous standards, involving a wider range of stakeholders, and more lengthy consultation, than previously. Projects that emerge from this process are likely to be more sustainable and acceptable than an earlier generation of schemes. However, there is a risk that “the best is the enemy of the good” insofar as lending agencies, banks and private investors are deterred from lending by “reputational risk”. For their part, some borrowing countries despair of the delays and uncertainties imposed by the new procedures, and either go it alone without IFI support, or fail to implement urgently-needed projects.

In order to secure finance for essential major infrastructure from IFIs and commercial lenders, working arrangements are required which take account of key elements of the World Commission on Dams report. However these should avoid unnecessarily complex and time-consuming procedures which deter both financiers and borrowers and work against the needs of the poor. There should be a specific study of the experience of financing dams and other major hydraulic projects concluded since 2000 with IFI involvement.

Water charges raise essential funds for the operation and maintenance of systems, and turn passive recipients of water into paying customers, potentially with an important voice in how services are provided. Recently the case for raising irrigation charges has been clouded by a controversy ov er how far tariffs can influence farmer’s use of water. It is argued that for charges to alter farmers’ behaviour they would need to be very much higher than at present, which would run into stiff resistance. There would also have to be some credible system of measuring water use and an effective collection system.

However, accepting the argument that charges may not greatly influence farmers’ use of water in no way weakens the case for recovering more costs from users to raise essential funds for O&M and eventually capital costs of systems. But the timing and context of raising such charges are crucial.

Farmers are more likely to acquiesce in paying higher charges if there is a good prospect of improved service. This is unlikely where such revenues flow back to the Treasury and the irrigation agency has no control over their use. The success of a more active charging policy depends on either giving the irrigation authority financial autonomy, so that farmers would see direct benefit from higher charges, or enabling farmers’ organisations to hire irrigation services on their own account. In either type of regime, farmers would be transformed into clients who “owned” the process of reform, and would be able to exert pressure on the authority to make its operations efficient in order to keep costs down.

Further study is desirable of cases where irrigation tariff reform has been successfully introduced, and their lessons for implementation

Developing innovative solutions

The key to involving a wider range of financial sources in water for agriculture is to identify the specific risks of this sector to investors and lenders, and to address these risks through financing structures. There is scope for co-financing from various sources, with each funder assuming appropriate parts of the risk.

Lenders and investors in agriculture expose themselves to a variety of risks. Some of these are generic and not specific to this sector, though they may apply with greater force in agriculture than elsewhere. Some risks affect individual producers, others concern the whole sector. The main risks to note are: project profile & cash flow; production, client & credit; market; environmental; climatic; foreign exchange; sub-sovereign; political, contractual & regulatory.

These risks can be addressed and mitigated by a mixture of measures. In some cases this entails designing the project to make it more risk-proof. In other cases the provision of complementary infrastructure would reduce risk. In the realm of financial engineering the options include: structuring the project finance package; insurance, guarantees, choice of suitable loan terms, use of derivatives; adequate capitalization and liquidity of the borrower; collective security; Central Bank action to refinance illiquid loans, etc.

There are innumerable examples of private investors in groundwater development for their own use, and – in South Asia- for sale to neighbouring farmers. But private finance of irrigation water for sale on a commercial basis is less common. There are now a number of private companies with service and management contracts with public irrigation agencies, and a smaller number of private contracts involving commercial risk on investment, with costs recovered from users. In most cases the motive for seeking private sector participation has been a desire by governments to reduce the level of subsidies going to operate and maintain irrigation and drainage systems. Where PPPs have happened, farmers tend to be organised into groups or associations.

Al though farmers’ needs for seasonal credit are widely catered for from a variety of sources, the situation for term finance is very different. In developing countries there is frequently a shortage of institutions offering term finance to farmers, apart from large commercial operators such as plantations and agro-business ventures.

This is a serious brake on rural development, which reflects the financial markets’ view of the risks in agricultural term lending, compared to financing other sectors. These risks are of different types, and are very situation-specific. Irrigation and storage facilities may actually reduce a farmer’s risk, while financing tree crop plantations is risky. Loans to experienced farmers for machinery and equipment are not necessarily more risky than seasonal credit. Financing the expansion of existing activities is less risky than funding start-ups or diversification into new occupations. Successful providers of term finance tend to operate in areas with good infrastructure (including irrigation) and proximity to markets or processing companies.

Despite its spread into other sectors, microfinance has made limited penetration into agriculture. One reason is that some governments cap interest rates that can be charged to small farmers, which makes such loans unprofitable to commercial lenders given the high transaction costs typical of this sector. Another reason is the lack of a sufficient density of clientele, especially those needing credit for non-farm activities. Countries where microfinance has been successful in rural areas, such as Bangladesh, Bolivia and Indonesia, have allowed “policy space” to decentralised finance, have an adequate legal and regulatory framework, and possess the necessary density of market for its services. Public authorities and agencies have an important role in the promotion of MFIs and DFIs but this is often most usefully exercised in indirect ways, such as created an enabling environment. Well-meaning interventions should avoid the risk of crowding out local players and thereby suppressing the growth of local capital markets. Governments, donors, and IFIs, with the support of international networks and other stakeholders, should develop appropriate fora (e.g.Round Tables) involving local financial service providers to identify ways of promoting microfinance in water for agriculture. Governments should also review the impact of existing credit and capital market controls on the potential development of a microfinance market.

Preface

When we try and set the context for the problem of financing water for agriculture over the next two decades or so we find ourselves juggling with many major imponderables. Among the factors that will affect agriculture and investment in water services are population growth, climatic changes and variability, changes in material living standards, advances in agricultural science and technology, global health status, changes in lifestyle, the continued march of urbanisation, the growing competition for water resources, etc. To take just one factor, the global trade and macro-economic environment has a major impact on agriculture. In recent decades major countries such as India and China have largely achieved food self sufficiency but with the prospect of their rapid economic growth and urbanisation, not to mention growing water stresses, it is not out of the question that they will sooner or later become major food importers again. This would transform the market prospects for food products.

In the same vein, observers have been examining the impact of the present Doha round of trade negotiations, which are likely to bring modest benefits to agricultural trade over the next ten years. However, the main beneficiaries are likely to be a few middle income countries rather than the poor, and farmers may benefit while food importing countries may suffer overall. The future pattern of trade will impose its water “footprint” on exporting and importing countries according to the water content of their trade.

We are not soothsayers and cannot predict how the Big Picture will evolve in all its complex detail. Our modest aim is to bring some suggestions forward to governments and stakeholders so that the pot of investment for water for agriculture can be expanded.

Our main concern has been finance for water as a productive input used by farmers, rural households and others. But it is relevant to consider the interests of consumers of food and other farm products. The very first Millennium Development Goal addresses poverty and hunger. Of the 1.2 billion living below the poverty line, the largest number – 900 billion - live in rural areas. Not all of these are farmers - many are landless, and rely on wage employment or products obtained from the local environment. The remaining 300 million of the world’s poor currently living in urban areas also have a stake in agriculture, depending as they do on access to plentiful and affordable food.

There are many preconceptions of farmers, which regularly need to be challenged. Farmers are a diverse group, operating in very different environments. They tend to be misunderstood, ignored or patronised by officialdom, banks, lending agencies and their political representatives. I hope that our report helps to convince readers of the variety and complexity of this sector, its different needs, and how all parties can contribute.

The Working Group’s regional Consultations held so far have raised a number of key issues. The consultation process will continue after the Mexico Forum to further address these points and follow up on promising approaches. Its eventual aim is to contribute to an agenda for further action by members of the international community in its many constituents.

I. Setting the scene

1.Overview & Scope of Work

1.1. Overview

In the coming decades feeding the growing world population and satisfying its need for raw materials will call for increased out put from irrigated agriculture. Some of this [FAO estimates…] will come from an increase in the irrigated acreage, though the scope for this will be much more limited than in the past. The larger part of extra output will have to come from the more efficient use of water resources already being exploited, epitomised in the slogan more crop per drop.

Agriculture is by far the largest user of the world’s water and can expect growing competition at the margin from other sectors for its use2, particularly from the encroachment of growing cities onto farmland. More crop per drop implies the reduction of losses from the transport and distribution of irrigation water, and its more efficient application to crops through more widespread use of sprinkler and drip irrigation methods. The more efficient use of water in rainfed systems will also have a part to play, in some cases supplemented by irrigation water. Communities and households will also need to capture more water through catchments, for local productive purposes.

These developments call for major changes in the way in which water is used in agriculture and rural activities. They also have major cost and financing implications. It has been estimated that the annual costs of managing water resources to meet the MDG Hunger goals could lie in the region of $45-50 billion over the next ten years, rising to $65-70 billion thereafter. These costs relate to conventional irrigation, upgrading rainfed systems, and complementary investments in soil and water management, research, extension, etc. Investment is needed in the rehabilitation and adaptation of present infrastructure as well as the creation of new structures and systems. Some investment, especially in major infrastructure, will fall to governments and public agencies. Much, however, will be undertaken by private farmers at all scales and of varying types.

All farmers are water users in various forms, hence the potential scope of the enquiry is very broad.

Water for agriculture is a diverse and complicated topic and it is not sensible to over-generalise about it. It is currently financed from a mixture of sources, and this is likely to continue. The prospects for a major expansion of government subsidies or guarantees are not bright, given fiscal constraints and the many competing claims on the public purse. However, other potential sources – oda, MFI loans, commercial bank loans, small-scale informal sources, etc – are likely to be in more elastic supply. Finance of all kinds will, however, be conditional - on supportive policies, reformed institutions, sound projects and creditworthy borrowers. In order to attract the required amount and types of funds the sector as a whole will need drastic reform.

2 Molle & Berkoff, 2006

One of the fundamental obstacles the sector faces in attracting finance is the universal fact that irrigation water provided from public schemes is either free or massively under-priced. In most cases prices are well below the cost even of operating and maintaining the infrastructure, and make no contribution to recovering capital costs. This does not discourage farmers from investing in facilities for their own private use, but does explain why there has been so little private equity investment in the supply of irrigation water, and why public agencies have difficulty attracting finance without large public subsidies. Free or cheap water for farmers is an ingrained habit which in many countries is seen as a necessary part of national policies of cheap food and food self-sufficiency. Such policies have a strong emotional and political appeal, but the use of cheap water in their pursuit may be unsustainable and could produce distortions which become self-destructive. Financing prospects also depend on forces outside the control of farmers and their national governments. The prices of internationally-traded crops are set in world markets, and even domestically-consumed products are influenced by external trading conditions. International trade is not, of course, a level playing field: other countries use a combination of import and export barriers, and export subsidies, to distort the terms of trade in their favour (as they perceive it). Developing countries often complain about these trading practices, though they may equally gain from preferential access to certain markets.

The Working Group has broached issues such as these, drawing on the resources of its sponsoring institutions and the views of stakeholders at three regional consultations. The subject is broad and complex, the issues are knotty, and solutions often difficult, requiring great political will. Consequently, this report does not make categorical recommendations, nor offer specific proposals tested for their feasibility.

Its purpose instead is to flag a number of key issues in this area, raise questions that need to be further addressed, and indicate some promising lines of approach. In this way the Report aims to contribute to an agenda for further action by members of the international community – including national governments, UN agencies, trade and cooperation ministries, financial agencies, NGOs, bankers, farmers’ representatives and other stakeholders in this vital topic.

1.2. Origins of the Enquiry

The Working Group (WG) has been sponsored by the Global Water Partnership (GWP) and the World Water Council (WWC), and is also supported by the World Bank, FAO, IFAD and IWMI. Dr Ismael Serageldin, President of the Biblioteca Alexandrina in Egypt and former Vice-President of the World Bank, has chaired the Group. Annex 1 provides information on the composition and working modalities of the Working Group.

The purpose of the WG has been to continue and extend the work of the World Panel on Financing Water Infrastructure3 by considering in greater depth the specific problems of financing water in agriculture and related rural activities and livelihoods. References to this topic made by the World Panel appear in Box 1.

Box 1. Extracts from “Financing Water for All”(pp. 38-39)

The panel’s intention has been to attempt a balance between the needs of different water sub-sectors. This has not been easy. Inevitably, because of the prominence given to

reducing the service deficits of the poor in the MDG and Earth Summit, the needs of poor households have absorbed much of the panel’s time. Each sub-sector requires its own

distinctive approach, and many solutions are sector-specific. In particular, the financing

needs of irrigation is a complicated and stubborn problem. With these reservations, the

panel believes that its proposals would have financial benefits for each of the main

branches of the water sector, and are summarised below…..

Irrigation

The reengagement of MFIs and donors with dams and other major hydraulic works

would improve water and food security for many farmers, especially in Africa. Public

irrigation agencies are one type of sub-sovereign entity that could benefit from more

financial autonomy, though major reforms are going to be needed to improve their

creditworthiness. In selected schemes where conditions are favourable, private

concessions are feasible (and are being invited); these would benefit from the extended

use of insurance and guarantee instruments, and from the proposed liquidity facility.

Small-scale farmer-financed schemes would benefit from the proposals to develop local

capital markets, micro-credit and development finance institutions…..

Hydropower

Most large hydro schemes are in the public sector and dependent on public investment,

supplemented by foreign aid and international/national borrowing. A minority of

projects, mainly small, run-of-the-river schemes, are private investments. The proposal

on dams would encourage more MFI and donor support. Commercial bank lending

would benefit from the wider use of insurance and guarantee products, and from wider

use of the MFIs’ B-loan and Preferred Creditor Status products. Bond issues for hydro

would also gain from more use of Partial Credit Guarantees, which would extend

maturities and lower rates…..

1.3. Scope of work

The broad aim of the Working Group has been to consider and recommend ways of increasing the flow of finance, and access to it on acceptable terms, for water users in agriculture, related rural sectors, and communities or households using water for directly productive and livelihood purposes. Addressing the Millennium Development Goals for poverty or hunger hinges to a large degree on tackling the issues involved in financing water development and reforming water governance.

The Group has taken a broad view of the sector, following the Integrated Water Resource Management approach, taking on board the financial needs of the whole water cycle as it 3 Popularly known as the Camd essus Panel, which issued its report, “Financing Water for All” in 2003, presented to the Kyoto 3rd World Water Forum.

affects agriculture. This includes upstream and watershed interventions and problems caused by downstream effluent, such as drainage and pollution abatement. Its Consultations focussed in practice on the following major issues:

?Financing needs, sources and future options for investment in the infrastructure of water resource management (e.g. storage & transfer) and agricultural irrigation

(large and small).

?Funding needs at local, community and household levels for productive water use, and livelihood & food security purposes

?Specific examples and case studies deemed to be of wider interest. Particular attention was paid to innovative financing methods, the use of unconventional

sources, and ways of combining different types of funds.

In principle, the scope of work includes funding for the infrastructure, institutions and services involved in water management for agriculture, related rural activities, and the use of productive water for rural livelihoods. This includes:

?Finance for both public and private parties, from any source

?Capital expenditure in new schemes; modernisation, rehabilitation, adaptation of existing projects; installation of new management systems; generating sufficient

revenues to operate and maintain schemes efficiently.

?Financial needs of the whole water cycle as it affects agriculture, including upstream and watershed interventions and problems caused by downstream

effluent (drainage and pollution abatement).

?Funding interventions at various scales (international, transboundary, national, regional/district, municipal/local, household), depending on the level of

management involved (basins/catchments, farm level, small and large scale

irrigation systems, household yards and subsistence plots, etc.)

?On-farm and village-level agricultural processing, where these have important water implications

?Water-intensive rural activities such as aquaculture, which are closely related to agriculture

?The “productive” use of water by rural hou seholds for livelihood purposes and finance for the management of water for the benefit of the rural poor, in their

various roles.

In practice, the Group has only been able to touch on some of these topics.

1.4. Distinctive features of Financing Water for Agriculture

From the viewpoint of financing, water for agriculture has certain distinctive features compared with water and sanitation (W&S) for household use.

Magnitude. The amount of water involved is very much larger and, on a per head basis, the infrastructure necessary for supply and distribution (plus drainage and disposal) is more expensive.

A productive input. T he water is supplied for productive, rather than “basic needs” or lifestyle purposes. This means that it can have important repercussions on local economic

and social development. It also implies that the users of the water – overwhelmingly private farmers and other rural enterprises – see water as a productive input and (at least potentially) as a cost of production. This should create the basis for economic water charging, but this has been widely undermined by use of irrigation water for the production of low-value foodgrains and the politicisation of water and energy prices in many countries (see next point).

Financial versus economic returns. There is commonly a discrepancy between the financial performance of irrigation agencies (usually very poor) and their economic rates of return taking account of all benefits and costs, reflecting their social values. This also applies to many W&S cases, but for different reasons. In irrigation, the situation arises from various causes. The supply of water free or at sub-economic cost may be seen as a means of promoting food self sufficiency, settling newly developed areas, appeasing a farming lobby, etc. Or it may be a way of compensating for food prices that are kept low for social reasons, or which are squeezed by “unfair” foreign imports.

Unattractive to private finance. Private finance has been more wary of investment in selling water to agriculturalists than in the case of W&S. The subsidy mentality is more pervasive, and very few public irrigation schemes are fit for privatisation (though there are many cases of PPP involving the supply of services for a fee).

Farmers’ own investments. On the other hand, there has been widespread investment by farmers themselves in water for their own use (particularly groundwater and small diversion and storage schemes). Notwithstanding this point, this option depends on local circumstances, and not all farmers are able to take these matters into their own hands –sometimes water can only be obtained by collective or public action.

Involvement of water users. Agricultural water users need to be much more closely involved in decisions about water allocations and the operation and maintenance of their systems than is the case for W&S. There is an important role for farmers’ associations, and specifically Water User Associations with some delegated powers, which might include revenue collection and discretion over some expenditures.

Specific risks. Supplying water for agriculture has its own set of risks. The water resource itself is at the mercy of climatic fluctuations and, in the event of scarcity, other sectors may take priority. Irrigation clients are farmers whose incomes are often affected by natural forces beyond their control. These specific risks are further discussed in section 7.1.

2.Financing Water for Agriculture: the starting point

Much has been written and said on the role of agriculture, and specifically irrigated agriculture, in contributing to future global demands for food and raw materials. The MDG for alleviation of Hunger has added urgency to this debate. Apart from the topic of cost recovery from farmers through water prices, which has a huge literature, financing has received less attention. This chapter summarises some relevant aspects, including financial needs, current sources of funds, pricing and cost recovery, profitability and returns, and other salient matters.

2.1. Size of financing needs

The WWC/GWP Vision and Framework for Action in 2000, estimated that the annual investment requirements for agricultural water would need to rise from the current levels, variously estimated to be in the range $25-30 bn., to $40 bn. by 2025. The original estimates were based on very rough calculations, which have not yet been seriously refined. Nevertheless, these figures are retained in the World Bank’s current strategy paper4. Some observers contest these estimates, believing that there has been past over-investment in public irrigation schemes, that great gains in productivity could be obtained from existing infrastructure without major new investment, but with improvements in farm practices, responding to better incentives.

In a recent systematic analysis of the options for meeting the MDG for Hunger the annual investment and running cost of all water resource related management was estimated to be (US$ billion) 47 in the period 2005-2015, rising to 67 in 2015-2030, and falling back to 58 in 2030-2050. These costs are for various types of investment, including conventional irrigation, the upgrading of rainfed systems through small-scale water management and in situ soil and water management, agricultural research, extension services, and supporting development of rural roads5.

Future investment in agricultural water management is likely to be very different from the historic pattern. Much future investment is likely to be in the modernisation and rehabilitation of existing assets and investment in new hydraulic infrastructure, such as dams, is likely to be more selective than previously. In particular, there will be a great need for investment in increased productivity (“crop per drop”) especially in rain-fed systems:

“Large investments are needed now, and a first estimate indicates that 47 bi llion US$ per year is required to enable the release of 1,600 km2/year in rainfed farming, 270

km2/year in irrigation development and 350 km2/year of crop-per-drop savings.”

(Rockstrom, et. al. 2005, p. 34)

Investment requirements will reflect the economics of different systems: the next generation of hard and soft-ware projects will have to demonstrate more sustainability as well as efficient and cost-effective. This will affect the size of investment in each case.

4Directions in Development: Re-engaging in agricultural water management: challenges, opportunities and trade-offs. Draft version, May 2005.

5 Rockstrom, et. al., Stockholm Environment Institute, 2005.

External financing needs will also depend on the feasibility of internal contributions through cash or kind, and how far revenues are retained in the system rather than siphoned off for general purposes.

It is not just the amount of finance that is of concern: the timing of cash flow and its scheduling are also crucial. Many large schemes, especially in Asia, require upgrading to be financed on a continuous basis, over and above what is recovered for O&M. Where finance for upgrading is made available in large indivisible payments it tends to be untargeted and spent on quick returns and this results in system failure. Upgrading should be treated as part of an asset management strategy, needing the release of smoother flows of finance.

2.2. Current sources of finance

The funding of large public irrigation schemes is relatively well understood, since it relies overwhelmingly on national government loans and subsidy (including guarantees for external borrowings) plus support from international agencies for some of the more prominent projects. From agencies, lending by the World Bank and other multilaterals for irrigation declined from a peak in the mid-1980s of approx. USD 3 bn. to approx. USD 2 bn by the late 1990s. There are now signs of a revival in this lending. The earlier trend was partly a reflection of the worldwide decline in investment in new irrigation schemes, a recognition of the need to reform institutions to make investments viable and also a response to growing hostility towards the construction of new hydraulic infrastructure of all kinds. National government loans and subsidies for this purpose have also been trending downwards. In some countries, e.g. India, state and municipal bonds have been issued for financing irrigation, with government guarantees.

Within irrigated farming, different types of scheme have their own distinct sources of funds. Financial sources of private irrigators are difficult to gauge with any accuracy, hence overall estimates are biased towards the public sector. While it is difficult to generalise about the private sector, commercial farmers tend to use a combination of loans from banks and other specialised credit institutions, where these are available, supplemented by their own savings and equity. Small-scale farmers and rural households are more likely to use informal credit sources and micro-finance to supplement their own inputs in cash and kind. Larger farmers are more likely to take up insurance and re-insurance against the risk of climate variability, though ways of covering small-scale, poorer, farmers are increasing.

2.3. Profitability of investment

Past financial returns on new public irrigation schemes have been poor, which is one reason why little private finance has been attracted. This conclusion needs to be qualified for investment in rehabilitation and modernization, where there are large sunk costs, and also for groundwater schemes and smaller schemes sponsored by farmers themselves. In both of these cases, higher returns are likely. The meagre profitability of large public schemes is due to various factors, including subsidised competition from imports, over-design, poor cost control, inefficient operation and the secular decline in the terms of trade of major crops. Moreover, inadequate consultation with farmers has led to

inappropriate design both from a physical and farming perspective. Between 1965 and 1998 the world prices of agricultural export commodities fell by 47% in real terms. For certain crops this was partly due to the growth of export surpluses from some developed countries.

In many cases, economic benefits differ from financial returns, and are often greater, taking account of distortions in output and input prices and the hidden benefits and costs of environmental, public health and other impacts. World Bank evaluations show a healthy economic return on most irrigation investments6 although lower than predicted. For many publicly-sponsored irrigation schemes realised (ex post) financial returns are low, though the effects of these schemes on employment, food security and wider regional development are difficult to reflect in standard investment appraisal or cost-benefit analysis. Much investment in irrigation remains profitable, witnessed by the large amount of private investment that still continues in this sector (see below). Public schemes, however, are more problematic: while investment in rehabilitation and remedial maintenance of existing schemes will continue to be efficient in many cases, there are some major schemes which, with the benefit of hindsight, should never have been built.

2.4. Public and private boundaries

The distinction between the public and private sectors in relation to agriculture is different from that often understood for drinking water supply. Farmers (whether smallholder or industrial) are quintessentially private sector players who often provide water through their own efforts and finance.

Certain aspects of water management are nevertheless more appropriately done by public agencies. Where an activity has positive externalities (e.g. watershed management ) or reduces negative externalities (e.g. pollution control) there is a potential case for public subsidy. Certain of the overheads of water management (e.g. research, administration, monitoring, field advice) are also natural public responsibilities. There is also a category of “public goods” (e.g. flood control) that normally fall to governments because it is not possible for private agents to recover their costs, since potential beneficiaries cannot be excluded from the services. In other cases, notably the construction and operation of large dams and irrigation command systems, Governments have taken the lead and remain dominant as service providers, with high levels of subsidy, due to the large scale of these projects and their wide social and economic ramifications.

Despite this, there is a high level of private financing of irrigation. The FAO estimates that private investment fully funds 20% of the world’s irrigated area, and funds about half of the remaining 80%. In addition there are 70 mn hectares under “informal” private irrigation, including groundwater.

Public agencies dominate the supply of water to farmers in major surface irrigation schemes, but private farmers themselves provide for most of groundwater supplies. Private farmers, acting alone or in cooperatives, also frequently arrange and finance their own investment in water infrastructure for crops, livestock, etc. with a sufficiently high 6 I Jones, Evaluation of irrigation schemes, OED, World Bank,

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广州新版八年级英语下册unit1

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安全生产演讲稿

安全生产、党员争先 煤矿生产,安全为天。当单位或部门新分来学员和新工人时,都要进行有关安全政策、法令、规章制度的学习、培训。上岗工作时,安监部门、各级领导又是人人讲安全,天天进行安全戴帽说安全。可是,每次事故的发生都事出有因,究其原因何在?答案是:绝大多违章人员都是没有管好自己。由于参加工作时间长了,工作环境熟悉了,讲安全听腻了,思想上逐渐产生了麻痹大意思想,尽管安全规章天天讲,也当成了耳旁风,心里有一搭无一搭。事故发生后,震动一阵子,过后又随着时间的流逝而淡化。这种“管不住自己”的毛病,无疑是酿成事故的病症所在。 要搞好安全,真正做到安全为了生产、生产必须安全,除了严格按照各项安全操作规程规定作业外,最重要的一点就是要“自己管住自己”。各科室、区队里有科长、队长、班长、青年安全监督岗员和群监员,但都不能时时处处跟着你、看着你、附在你身上,钻进你心里。你工作走神,思想溜号,有意违章,违章操作,事故往往就在这种情况下找上门来。有位在煤矿工作多年,从未发生过任何事故的老工人说过这样一句话:“我的安全经验就是自己管自己”,这句话言简意赅,值得品味再三。在工作时如果三心二意,就有可能发生事故。根据有关部门统计资料表明:百分之九十以上的事故,都是由于思想麻痹和“三违”造成的。 俗话说得好:“世界上什么药都可以买到,就是‘后悔药’买不到”。出了事故,单位受损失不说,自己轻则受皮肉之苦,重则缺胳膊少腿,甚至连生命都没有了,你的父母、妻子、儿女还要为你承担痛苦与不幸。生活是美好的,家庭是温暖的,何必为一时之错、一念之差,付出如此沉重的代价?

作为一名党员干部,我们应当牢固树立“本质安全,珍爱生命”的理念,去营造遵章守法,治理“三违”的安全文化氛围,把安全生产的制度,变为我们自己的自觉行动。同时还要加强学习、注重提高自身的安全技术素质和安全生产能力、切实在安全生产工作中发挥出党员的先进性和模范带头作用。 党旗在飘扬,党旗在召唤。让我们在全矿蓬勃开展的“创先争优”活动中,时刻牢记这样一个道理:党员就是责任,党员就是旗帜,党员就是榜样,党员就是先锋;让我们忠诚做好人民群众的领头雁,真情当好安全发展的排头兵,为鲜红的党旗增辉添彩,为建设庇山和谐矿区、本质安全矿井、五优矿井做出积极的贡献。

放飞梦想演讲稿500字5篇

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张开翅膀,放飞梦想,带你自由飞翔,到达一个任心灵翱翔的世界…… 会当凌绝顶,一览众山小。——杜甫 “我的未来不是梦,我认真的过着每一分钟”,每当我听到《我的未来不是梦》这首歌曲,我的理想不由得放飞了起来。当一名人 民教师,是我最大的理想。 高中 我现在是为初中二年级学生,再过一年多就要考高中。我的目标是灵宝一高。 从现在开始,我要分秒必争,积极乐观的完成初中教学任务,还要努力培练自己的独立自主能力,我坚信“阳光总在风雨后”经过 我长期的奋斗,我一定会成功。 大学 我的第二梦想是考上清华大学,清华大学人才济济,我在他它里可以学到很多的知识。大学能成就我的人生,在大学里,我可以实 现我的梦想,放飞我的梦想。 我时刻准备着,时刻努力着,时刻拼搏着。 教师 “教师是人类灵魂的工程师”,从小就树立了远大的梦想,当一名人民教师。为千千万万的学子传授知识。 在儿时,爷爷经常给我讲一些带有一定哲理的故事,虽然我那时听不懂故事中的哲理,但我完全可以把爷爷给我讲的故事叙述下来,爷爷听后两眼瞪圆,十分惊讶,就抚摸着我的头悄悄对我说:“不 愧为我的好孙儿,你真是当教师得料,你真是太棒了。”我的心不 由扑通扑通地跳了起来,不由的喊了起来:我是人民教师。

unit2广州版八年级下册(最新整理)

2018 年广州版英语八年级下册 Unit 2 期末复习资料 Unit 2 Body language 跟踪练习 用所给单词的适当形式填空 1. Y ou had better practise (exercise) every day. 2. J im does his homework as (care) as his brother. He never makes mistakes. 3. W hat about 4. T hey answered the questions (have) a picnic? (different). 5. T hey learn English by (sing) English songs. 单项选择 1. You don’t give people a good , so people choose Debbie instead of you. A. impression B. instruction C. impressive D. instruct 2. Disney is famous for its cartoon characters Mickey Mouse, Donald Duck, Goofy and Snow White. A. for example B. such as C. as D. likes 3. The film me of my father. I miss him very much. A. promises B. reminds C. makes D. returns 4. Yesterday I an invitation from Tom but I didn’t it. A. received; receive B. accepted; accept C. accepted; receive D. received; accept 5. I’m with the homework, Mom. A. bore B. bored C. boring D. to bore 6. --- In this example, is not important. --- Yes. We shouldn’t judge a person his or her look. A. appearance; by B. appearance; for C. expresion; by D. expresion; for 7 W hat time will you arrive China? ---- I don’t know. Maybe five hours . A. at; later B. in; later C. at; late D. in; late 8 W hat’s the with you? --- I didn’t know the of this sentence. A. wrong; communication B. matter; communication C. wrong; meaning D. matter; meaning III .Grammar (动名词的用法) 基本用法: 1.作主语 (谓语用三单) Swimming in the sea is her favourite sport. 2.作宾语(动词及介词的宾语) I practise speaking English every day. Debbie is good at communicating with people. 3.作表语(表示主语是什么,可主表互换) My biggest hobby is collecting stamps. 4.作定语(说明所修饰事物的用途) There is a swimming pool nearby.

化工厂安全生产演讲稿范文

化工厂安全生产演讲稿范文 安全生产是安全与生产的统一,其宗旨是安全促进生产,生产必须安全。以下是小编整理的化工厂安全生产演讲稿范文,欢迎大家阅读。 化工厂安全生产演讲稿范文一: 尊敬的各位领导、同事们: 我演讲的题目是:打牢化工企业安全基础,是构建化工企业安全长效机制的根本。 首先,我认为大家能站在这里都是幸运的,为什么这么说呢?比起现在躺在医院里的人,我们是幸运的;比起灾区的人们,我们是幸运的。 安全是企业之魂,是企业生存与发展的基础。员工的人身安全得不到保障,企业就无法发展壮大;公民的人身安全得不到保障,国家就无法繁荣富强。人是以个体的形式出现在社会上的,社会上的每一个公民就如同珠子,和谐顽强的生命力将珠子串起来,形成一个不可分割的生命体。线一旦没有了生命力,珠子便滑落下来,也就不存在这个生命体了。所以我们每个人无论在社会中还是在企业中的力量是不容忽视的。 领导和同志们,作为化工行业的一员,有几起事故我本想忘记,更不愿向人们提起,但今天我要再一次提起:1984年12月3日,印度一化工厂,由于工人操作失误,异氰酸甲酯大量泄露,致使2500多人死亡,5万多人眼睛失明;2005年,中石油吉林石化分公司双苯厂发生爆炸,造成8人死亡,60人受伤,并引发松花江水污染事件;今年8月29日,广西宜州化工厂爆炸事故,造成20人遇难。几起化工事故虽然离我们越来越远,但那一幕幕惨剧仿佛就在眼前,遇难者那一具具冰冷的尸体,一张张因极度痛苦变得扭曲的脸,亲人们那一声声嚎哭,还在叩击着我们的心。领导和同志们,几起化学事故产生的原因虽然不同,但共同点却都是化工企业安全基础不牢。

基础不牢地动山摇。胡锦涛总书记在党的十七届三中全会上指出:"人命关天,绝不能把人的生命当儿戏"。胡总书记的指示,充分体现了科学发展观以人为本的核心要求。可是,在现实生活中,少数化工企业,只注重生产,而忽视安全,生产不讲科学。土办法管理,老经验办事,无视标准和规范。人们常说:安规本是血染成。面对成千上万条鲜活的生命,用鲜血和泪水书写的操作规程,有的人总是熟视无睹,麻木不仁。"小型分散,少量多次勤运走",烟花爆竹安全生产的"十一"字诀。短短的十一个字,却保证了不知道多少企业财产和工人生命的安全。美国杜邦公司是一个生产炸药的军工企业,可是杜邦老板却敢夸口说:在杜邦公司上班比在马路上散步还安全,因为杜邦有一整套保证企业安全运转的规范,即使放一只桶都要放在指定的圆圈。我们危化处在科学发展观学习讨论时,得出了这样的结论:危化企业最危险,危化企业难监管,只有安全才能生产,规范生产才能确保安全。 邓小平同志在1988年9月就提出了:科学技术是第一生产力的科学发展观思想。很多化工事故都是由于设备落后,科学技术低下造成的。实行科技兴安,大力引进新工艺,提高安全装备水平和科技含量,是我们刻不容缓的责任。提高化工设备自动化程度,优化生产工艺,创造一流信息化化工企业,打造数字化化工企业,是化工企业安全发展的唯一出路。 人才是科技进步的第一资源,是安全生产的根本基础。可是个别化工企业领导对安全工作认识不到位,管理不到位,措施不到位。致使企业管理松弛,作风涣散,不讲科学,违章蛮干。但随着人才强企战略的实施,人才在企业安全工作中的地位越来越重要,也使**安全工作插上了科技的翅膀。领导和同志们,安全没有后悔的机会,失误只会留下千古遗憾。在这里我要大声疾呼:生命诚可贵,安全大于天。 曾给他们讲看过的一篇文章,至今还记忆犹新,某火电公司在一化工工厂施工时,一位日本专家曾这样说施工人员:"你们中国人的确有不怕死的可贵精神,在施工现场有不戴安全帽的现象。在日本,厂长,经理开会时安全帽都系得紧紧的。"这是对违章现象的莫大讽刺。它一针见血地言明了一些人安全意识的淡薄与无知,对自己的轻视就是对家庭和社会的犯罪。安全的警钟要常鸣,奉劝可叹的"勇士们",收起你的蛮干和无知吧!有人说:安全生产的难点在我们自己,在我们自身的安全意识。仔细想想不无道理今天。"安全生产月"活动的展开,《安全生产法》的颁布实施,"两票三制"的严格执行。。。 这不都是为了搞好安全生产,领导和职工们用血的教训组成的努力与决心。安全的

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