Publication: Philippines : PPP Options in Irrigation Sector
Loading...
Date
2013-06
ISSN
Published
2013-06
Author(s)
Editor(s)
Abstract
This study proposes an analytical framework to determine the extent to which Public-Private Partnership (PPP) is a viable and effective business option for developing and modernizing the irrigation sector in the Philippines. It focuses on: (a) assessing and providing recommendations to address the policy, regulatory and institutional constraints that limit the recourse to PPP as a tool to support the development of the irrigation sector; and (b) if PPP is proven to be a viable option, develop the capacity within the Department of Agriculture (DA), National Irrigation Administration (NIA) and National Economic Development Authority (NEDA) PPP Center to identify and assess potential projects. The TA was meant primarily to produce a simple and practical analytical framework for the Government to build on, rather than a full-blown study on an irrigation PPP project. Adopting the PPP scheme in irrigation will require specific answers to the following questions: (1) how PPP contractual arrangements can help to address the usual problems in public irrigation (e.g., maintenance problems due to budget restriction and decision making processes); (2) how PPP can ensure financial viability of the irrigation system; (3) how PPP can avoid political interference in setting irrigation fees; and (4) how PPP can increase the useful life of irrigation systems and break the vicious cycle of low collection of irrigation fees, poor maintenance, network degradation and expensive rehabilitation. The PPP scheme has to make the case that the financial costs of privately-funded projects are on a par with those of publicly-funded projects.
Link to Data Set
Citation
“World Bank. 2013. Philippines : PPP Options in Irrigation Sector. © http://hdl.handle.net/10986/18702 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Irrigated Agriculture in the Brazilian Semi-Arid Region : Social Impacts and Externalities(Washington, DC, 2004-04-26)The aim for this study was to assess the impact of irrigation activities in the Brazilian Semi-Arid (BSA) Region, and to analyze to what extent irrigated agriculture in this region has contributed to the reduction of poverty levels and regional inequalities, income growth and distribution, and the creation of quality jobs, with the aim of contributing to the establishment of guidelines for a regional development strategy. The study indicates that, overall, public investment in irrigated agriculture could be an effective strategy for boosting regional development, increasing exports and alleviating poverty in the BSA. The necessary dynamics for this are mainly: an abundant and reliable water supply, well-designed projects, competent project management, strong political support, timely financing and implementation, titled land parcels, practical urban support, adequate transport infrastructure, industrious farmers, participation of entrepreneurial producers, effective technological support, and, skilled marketing. The analysis also showed that: a) It takes about 10 to 15 years for public schemes to show positive results in a well-planned project and, b) the engineering component is the easiest part of a project: the most difficult is ensuring the farmers' successful participation in a sound, sustainable production, and marketing scheme. Some key recommendations being proposed include the promotion of irrigated agriculture as a key strategy for regional development, and poverty alleviation in the BSA, followed by complete, and upgraded schemes, before embarking on new public irrigation projects. To this end, the private sector should participate in the development of irrigation in the BSA, supported by a legal and institutional framework, to achieve an expansion of public and private schemes, based on sound market studies, to avoid overproduction.Publication Philippines - Discussion Notes : Challenges and Options for 2010 and Beyond(World Bank, 2011-06-09)With the global economy on the way to recovery from the financial crisis, the Asian economies appear poised to bounce back strongly. For most people in the Philippines, however, a return to the status quo ante will offer little consolation. That is because when economic growth accelerated during 2002-08, poverty did not decline as hoped. With a third of the population currently below the poverty line, and high and rising inequality in incomes, the country's main development challenge is to achieve growth that is much more widely shared to make growth work for the poor. Making growth work for the poor in the Philippines is a significant development challenge, but one that is worth pursuing vigorously. The new administration not only has the mandate but the historic opportunity to deliver on this goal as well as other election platforms on which it was voted to power. These include 'the organized and widely-shared rapid expansion of the economy through a government dedicated to honing and mobilizing the people's skills and energies as well as the responsible harnessing of natural resources; moving to well-considered programs that build capacity and create opportunity among the poor and the marginalized in the country; policies that create conditions conducive to the growth and competitiveness of private businesses, big, medium and small; and making education the central strategy for investing in people, reducing poverty and building national competitiveness.' In addition, the new administration is committed to fight corruption. These goals are fully echoed in the strategy and policy actions identified above and elaborated in the accompanying discussion notes.Publication Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects(World Bank, Washington, DC, 2012-06)This note is a partial response to the above mentioned 2010 Independent Evaluation Group (IEG) evaluation. It covers the specific issues to be addressed in the Water supply and Sanitation (WSS) sector and in the irrigation sector in two distinct parts, because if WSS and irrigation have some common features, there are many distinctions to be made. Among the various water-using sectors, that include navigation, fisheries, hydropower, rain fed agriculture, irrigated agriculture, WSS, and more generally 'the environment', cost recovery issues are of primary concern, and are the focus for this note, in the WSS and irrigation sectors. This preliminary background Note is divided in four parts: a 'history' of the call for financial sustainability and cost recovery and the parallel documenting of the lack of progress. This section ends with what this Note hopes to achieve in the face of what is clearly a deeply rooted problem; an outline of options to be considered for achieving financial sustainability of WSS service providers and recovering the costs of the WSS service through tariffs, i.e., from users and through subsidies; a discussion on what makes financial sustainability of irrigation projects different from WSS projects; and a summary of recommendations to teams involved in the identification, preparation, appraisal and supervision of water projects and of practical measures and actions that both the water sector board and the water anchor could take to help improve the Bank's track record in achieving and financial sustainability of the water projects it finances.Publication Options for Increased Private Sector Participation in Resilience Investment(World Bank, Washington, DC, 2017-12)The presence of a revenue stream and a commercial return are an absolute prerequisite for investment for the private sector. However, often adaptation benefits or the value added (resilience) of adaptation investment are difficult to quantify in financial terms. There is no accepted methodology to price the adaptation feature of an investment, that is to quantify whenan investment has successfully adapted to climate change. While the risks from extreme weatherand climate change are clearly recognizable, and many investors see these risks in the present ornear term, uncertainty about the precise nature, timing and severity of climate impacts makes the return on investment of adaptation projects difficult to measure. In many cases adaptation is embedded into project design and engineering. The fact that the adaptation component is often not able to be separated, or treated as an add-on feature, has consequences for fund raising and project financing. Particularly for infrastructure projects, the difficulty in ring-fencing adaptation components, and the uncertainty around the time and magnitude of climate impacts, make it difficult to charge separate/properly priced tariffs. These difficulties are compounded in emerging and developing economies (EMDEs), where users’ ability to pay is limited. Blended finance solutions are used to make projects bankable by closing viability gaps. Blended finance consists in the complementary use of concessional (grants or low interest instruments) and non-concessional financing from public and private sources to make projects financially viable and/or financially sustainable. Applying this approach to climate finance allows leveraging of limited public funding, enhances the overall effectiveness of aid, and potentially triggers an increase in private investment once the long-term viability of a market is demonstrated. This report analyzes the potential and need for blended finance solutions in four economic sectors - water, agriculture, transport, and energy. For each economic sector, two broad classes of investment, infrastructure and value chains, are discussed. Investing in infrastructure or in value chains (that is, the range of goods and services that link the producer to the customers or end-consumer) requires different competencies, investment processes, project selection criteria, and attracts different classes of investors. Each investment theme is assessed for its resilience relevance and potential for commercial returns. An in-depth analysis of financing needs and potential blended finance solutions for resilience investment in the agriculture sector is presented, because of the economic relevance of agriculture in EMDEs, and its exposure to climate and natural hazards.Publication Sudan : Options for the Sustainable Development of the Gezira Scheme(Washington, DC, 2000-10-27)The report assesses the main factors which constrain the sustainable development of the Gezira Scheme (GS), to develop medium, to long term plans, including short-term actions, to address those constrains. The GS, is described as a large and complex enterprise, because although it is one the world's largest irrigation systems, it has become one of the least efficient, irrespective of the fact that it uses thirty five percent of Sudan's current allocation of Nile water, producing two-thirds of the country's cotton exports. Following debates on recommendations to convert the GS into a joint stock company, the Government requested the Bank to review, and assess options for the GS sustainability. The report identifies the following problem areas: large debt burden; institutional weaknesses, stemming from a centralized administration, and monopoly service enterprises not financially sustainable; infrastructure, and technical deficiencies; uneconomic production due to low average yields; and, social inequities. Recommendations suggest medium to long term plans for institutional change, through public/private partnerships to establish an independent, privately managed Gezira Authority, who would decentralize managerial activities to competent farmer groups, and, in cooperation with government agencies, would coordinate institutional functions in irrigation, agricultural extension, and market information dissemination.
Users also downloaded
Showing related downloaded files
Publication Impact Evaluation in Practice, Second Edition(Washington, DC: Inter-American Development Bank and World Bank, 2016-09-13)The second edition of the Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policy makers and development practitioners. First published in 2011, it has been used widely across the development and academic communities. The book incorporates real-world examples to present practical guidelines for designing and implementing impact evaluations. Readers will gain an understanding of impact evaluations and the best ways to use them to design evidence-based policies and programs. The updated version covers the newest techniques for evaluating programs and includes state-of-the-art implementation advice, as well as an expanded set of examples and case studies that draw on recent development challenges. It also includes new material on research ethics and partnerships to conduct impact evaluation. The handbook is divided into four sections: Part One discusses what to evaluate and why; Part Two presents the main impact evaluation methods; Part Three addresses how to manage impact evaluations; Part Four reviews impact evaluation sampling and data collection. Case studies illustrate different applications of impact evaluations. The book links to complementary instructional material available online, including an applied case as well as questions and answers. The updated second edition will be a valuable resource for the international development community, universities, and policy makers looking to build better evidence around what works in development.Publication World Development Report 2004(World Bank, 2003)Too often, services fail poor people in access, in quality, and in affordability. But the fact that there are striking examples where basic services such as water, sanitation, health, education, and electricity do work for poor people means that governments and citizens can do a better job of providing them. Learning from success and understanding the sources of failure, this year’s World Development Report, argues that services can be improved by putting poor people at the center of service provision. How? By enabling the poor to monitor and discipline service providers, by amplifying their voice in policymaking, and by strengthening the incentives for providers to serve the poor. Freedom from illness and freedom from illiteracy are two of the most important ways poor people can escape from poverty. To achieve these goals, economic growth and financial resources are of course necessary, but they are not enough. The World Development Report provides a practical framework for making the services that contribute to human development work for poor people. With this framework, citizens, governments, and donors can take action and accelerate progress toward the common objective of poverty reduction, as specified in the Millennium Development Goals.Publication Boom, Bust and Up Again? Evolution, Drivers and Impact of Commodity Prices: Implications for Indonesia(World Bank, Jakarta, 2010-12)Indonesia is one of the largest commodity exporters in the world, and given its mineral potential and expected commodity price trends, it could and should expand its leading position. Commodities accounted for one fourth of Indonesia's Gross Domestic Product (GDP) and more than one fifth of total government revenue in 2007. The potential for further commodity growth is considerable. Indonesia is the largest producer of palm oil in the world (export earnings totaled almost US$9 billion in 2007 and employment 3.8 million full-time jobs) and the sector has good growth prospects. It is also one of the countries with the largest mining potential in view of its second-largest copper reserves and third-largest coal and nickel reserves in the world. This report consists of seven chapters. The first six chapters present an examination and an analysis of the factors driving increased commodity prices, price forecasts, economic impact of commodity price increases, effective price stabilization policies, and insights from Indonesia's past growth experience. The final chapter draws on the findings of the previous chapters and suggests a development strategy for Indonesia in the context of high commodity prices. This section summarizes the contents of the chapters and their main findings.Publication Poverty Reduction in Indonesia : Constructing a New Strategy(Washington, DC, 2001-10-29)The objective of the report is to point at the need for a new poverty strategy, and the areas of action it should cover, where each area should be specifically discussed, addressing the lives of Indonesia's poor, and the tradeoffs policymakers will need to consider, based on the belief that this poverty strategy should emerge from a broad dialogue among stakeholders. First, in broadening poverty, the report looks at the facts of the late 1990s crisis, which revealed the precariousness of Indonesia's gains in reducing expenditure-based poverty. Thus to extend those gains, the poverty strategy needs to be defined, and then redeveloped by acknowledging the multidimensional reality of poverty, and, it is this notion which will lead to making the strategic choices. Second, within the country's political transition to a democratic, decentralized mode of governance, a poverty strategy needs to be consistent with an empowered populace, and democratic policymaking mechanisms. In creating a policy environment for raising the incomes of the poor, the report identifies the resumption of rapid sustainable growth, with rising real wages, employment opportunities, and, limited inflation, including the economic empowerment of the poor, enhanced by poverty-focused public expenditures. Inevitably, the provision of core public services is an area which should address the people's will in local governance policies, focusing on education and health, while providing appropriate infrastructure, and developing safety nets.Publication World Development Report 2009(World Bank, 2009)Places do well when they promote transformations along the dimensions of economic geography: higher densities as cities grow; shorter distances as workers and businesses migrate closer to density; and fewer divisions as nations lower their economic borders and enter world markets to take advantage of scale and trade in specialized products. World Development Report 2009 concludes that the transformations along these three dimensions density, distance, and division are essential for development and should be encouraged. The conclusion is controversial. Slum-dwellers now number a billion, but the rush to cities continues. A billion people live in lagging areas of developing nations, remote from globalizations many benefits. And poverty and high mortality persist among the world’s bottom billion, trapped without access to global markets, even as others grow more prosperous and live ever longer lives. Concern for these three intersecting billions often comes with the prescription that growth must be spatially balanced. This report has a different message: economic growth will be unbalanced. To try to spread it out is to discourage it to fight prosperity, not poverty. But development can still be inclusive, even for people who start their lives distant from dense economic activity. For growth to be rapid and shared, governments must promote economic integration, the pivotal concept, as this report argues, in the policy debates on urbanization, territorial development, and regional integration. Instead, all three debates overemphasize place-based interventions. Reshaping Economic Geography reframes these debates to include all the instruments of integration spatially blind institutions, spatially connective infrastructure, and spatially targeted interventions. By calibrating the blend of these instruments, today’s developers can reshape their economic geography. If they do this well, their growth will still be unbalanced, but their development will be inclusive.