Sustainability from private sector participation in irrigation

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Client The World Bank
Dates 2014
Sector(s)Agriculture
Service(s)Policy & Economics, Strategy & Finance
A CEPA consortium was tasked to investigate the financing, structuring and implementation of irrigation schemes in developing countries. The objectives of the assignment were to:
  • develop a better understanding of private sector involvement in irrigation services and the ways these schemes can be designed in a sustainable manner; and
  • evaluate and develop the types of contractual arrangements that are sufficiently robust to various implementation arrangements.
We began by assessing the irrigation sector as an investment opportunity in order to establish the rationale for public sector intervention and the potential role for the private sector. We then completed case studies to identify international examples of best practice in irrigation PPPs from developing countries in sub-Saharan Africa, South Asia and Latin America. These case studies enabled us to identify important lessons for future sustainable schemes. In addition the team completed an economic and financial model that can be used to assess the costs and benefits entailed by different irrigation PPP models.
The final output of the assignment was a guide that set out the key design and contractual features of sustainable irrigation PPPs, and the enabling environment required. We also provided a financial and economic tool to assess the costs and benefits of different irrigation PPP options.
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