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Eighth International Seminar on PIM - Highlights

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The Eighth International Seminar focused on the theme of "Emerging Trends in Public-Private Partnerships in Irrigation Sector"

View Seminar Announcment, Seminar Schedule, List of Participating Countries

The Eighth International Seminar on Participatory Irrigation Managment held in Tarbes, France from May 9-13, 2005 was attended by 120 participants representing 32 countries.  The seminar which forms a part of International Seminar Series on Participatory Irrigation Managment focused on the theme of "Emerging Trends in Public-Private Partnerships in the Irrigation Sector".  The Seminar was sponsored by INPIM, The World Bank and the French Government and Organized by INPIM and Coteaux De Gascogne (CACG).  For the first time, the INPIM sponsored seminars had a large representation from the Africa Region. 

The seminar provided an excellent opportunity for participants to exchange views and experiences on a seemingly sensitive topic of Public-Private Partnerships in the Irrigation Sector.  The seminar provided an array of presentations by experts and participants, group discussion and a one day field visit to the CACG.  The concept of Public - Private Partnership (PPP) is being increasingly viewed as yet another option to improve the irrigation sector.  A wide variety of PPP arrangements exist in the developed and developing world.  By definition, A PPP is an contract between a public client and a private supplier, the operator or service provider.  A PPP is a form of Public Service Delegation where the services rendered by a private service provider is paid according to the operation results by the end user.  A public contract is one in wich a service proivder ( for whole or partial services)  is paid a fixed amount by the public client.  Thus the crux of the matter between PPP and public contract is how the commercial risk of recovering the service fee is allocated between the public client and the private operator.  PPP could range from lease, affermage, concession, Build-Operate-Transfer (BOT) or divestiture.  The essential difference in these forms of arrangments are given in the table below:

PUBLIC - PRIVATE PARTICIPATION MODELS
Type of Contract Duration
(years)
Repsonibility of the Operator Payment for the Operatior Asset Ownerhsip
Service
Contract
3-5 Specific Task ( Billing ...) Fixed Fee Public
Management
Contract
3-8 Some O&M Functions Free with Incentives Public
Lease/
Affermage
8-15 All O&M; Excluisve of Investments % of Tariff Collected Public
Concession/ BOT 20-30 All O&M; Plus investments Contractual Tariff Public
Divestiture Indefinete All O&M inclusive of Investements Customer Tariff Private

Two Keynote papers set the backdrop for the seminar discussions.  The paper on "Sustianable Irrigation Services" highlighted on the need to recover the sustainability cost of irrigation services ( Adminstrative and direct costs plus the cost of operation, maintenance and renewal).  Higher levels of service could be provided through different cost arrangments ( financial costs, environmental costs, full economic costs).  The bane of the irrigation sector is its poor performance due to inadequate and timely cost recovery coupled with budgetary crisis of governments.  Recovering the sustainability costs of irrigation is essential for the healthy perofrmance of the Irrrigation Systems. 

The keynote paper on "Public-Private Partnership in Irrigaiton and Drainage: Need for a Professional Third Party between Farmers and Governments" highlights the need for a professional third party between farmers and governments.  Several countries have piloted the formation of water user associations some of which have been empowered and enable hiring of technical and managerial personnel as in the case of Mexico and Canal St. Julien.  In some, WUAs continue to be fragile and in the process of empowerment.  The logical sequence of a WUA and empowered WUAs is to make long term arrangements with professional services through appropriate mechanisms.  The paper highights on the concept of PPP and distinguishes public contracts and PPP.  PPP is a form of public service delegation where the private service provider is paid on the basis of results by the end user ( sharing of commercial risks) as opposed to a public contract  where a fixed fee is paid for services rendered.  In other words, commercial risks are accepted by the provider (to collect service fee for the service provided to the client / farmer) in a PPP.

The experience of France and Australia provided an excellent opportunity for participants to compare and contrast two different approaches to PPP's.  In both the cases the irrigation services were provided by Irrigation companies but differed essentially in Governance arrangments. 

The examples from France of CACG, SCP andBRL show that these water companies emerged over a period of time in the context of a process of decentralizations.  Barring the exception of CACG which exclusively provides irrigation services, the other two companies provide Industrial and Municipal Water Supply and Irrigation.  The Boards of these companies is represented by local and regional governments.  Services provided are charged.  The case of Murray Irrigation Company, Australia relates to a farmer owned company.  The farmers under the irrigation system, elect their board of directors and appoint the staff to manage the company affairs.  Both examaples drew intense discussions and comparisons.

The seminar identified three pathways to PPP's (a)Empowered WUAs that hire services of professional providers (b) Reforming Irrigation Agencies that have autonomy and a service oriented approach and (c) Professionalized Irrigation Agencies.  Presentations, group discussions and field visits to the CACG provided an excellent opportunity to participants to exchange their views on PPP's.

The following Presentations were made at the Seminar:

  1. Key Note Session: PPP -the Context and the Concept:
  2. Expereinces from the Water and Sanitation Sector:
  3. Paths to PPP in Irrigation and drainage: - Empowered WUAs
  4. Paths ot PPP in Irrigation and Draiange: - Professionalized Agencies
  5. Field Visits:
  6. Group Discussions:
    • Group A
    • Group B
  7. Seminar Summary - J. Raymond Peter


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