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Public Private Partnership In Irrigation Management

It has been realized that the irrigation water services provided by the public sector institutions are highly inefficient. In several Asian countries, the lack of efficient and sustainable Management Operation and Maintenance (MOM) continues to plague the productivity of large scale irrigation systems which are mostly funded from public funds. Lack of sufficient resources to maintain the infrastructure created and their mismanagement greatly reduces the performance of these systems. Competition for limited resources from various sectors makes it difficult for the planners to allocate resources year after year to the same region since these irrigation systems fail to directly generate sufficient funds through irrigation water charges. The financial arrangements where these water charges are ploughed back into maintaining the irrigation systems, as is the case in France and with other innovative arrangements, irrigation systems can be financially viable. There is a growing realization that given their respective strengths and weaknesses, the public and the private sector can deliver the irrigation services to agriculture sector by joining hands. A public-private partnership (PPP) is a contractual agreement between a public agency (federal, state or local) and a private sector entity through which skills and assets of each agency are shared in delivering a service for the use of the general public. In addition to the sharing of the resources, each party shares the potential risks and rewards in the delivery of the service. Although PPP is an old concept and has been practiced in many sectors over the years, it has made an entry in to irrigated agriculture only recently. In irrigation sector it is still struggling to establish as a viable option due to uncertainty in returns from irrigation sector on the investment of private sector’s time and financial commitments. In order to make PPP in Irrigation sector viable, following options have been suggested: