Cost Recovery and Water Pricing for Irrigation and Drainage Projects
The objective of this paper is to develop guidelines for improving cost recovery and reducing water use per unit of output. The guidelines were developed from a review of studies of irrigation reforms and interviews of 20 World Bank staff members w...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/493201468135598958/Cost-recovery-and-water-pricing-for-irrigation-and-drainage-projects http://hdl.handle.net/10986/37385 |
| Summary: | The objective of this paper is to
develop guidelines for improving cost recovery and reducing
water use per unit of output. The guidelines were developed
from a review of studies of irrigation reforms and
interviews of 20 World Bank staff members with
responsibility for irrigation sector reforms in countries
from Asia to Latin America (names listed in Appendix 1).
From these studies and interviews, we distilled specific
reforms that are important in improving cost recovery or
reducing water use, or both. Reforms needed by individual
countries or projects will depend on their institutional
arrangements as well as the type of irrigation and its
physical condition. The second section of the paper begins
by listing some reasons for low collections and provides an
overview of some of the reforms that have raised collection
rates. In the next section, the authors review cost-recovery
principles and provide some examples of what different
countries have done to recover project costs and collect
water charges from users. The focus in the fourth section is
on designing water charges or water markets that will give
farmers an incentive to make better use of their water by
reducing the amount of water used per unit of output. In the
fifth section, case studies are used to determine what
reforms can help improve cost recovery and increase
collection rates. In addition, water pricing reforms are
identified that will encourage farmers to reduce their water
use per unit of output. The final section provides a summary
of the reforms that are important for increasing cost
recovery and encouraging farmers to improve their use of water. |
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