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Agriculture and Land Water Use Commission for the Near East Public Private Partnerships to Agriculture and Land Water Use Commission for the Near East Public Private Partnerships to finance, construct and operate irrigation systems Mohamed Bazza, Ph. D Senior Regional Officer Water Resources and Irrigation Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Irrigation in Figures • Irrigation: – – – • practiced since dawn of human Irrigation in Figures • Irrigation: – – – • practiced since dawn of human history Near East is cradle foundation of great civilizations in Near East World total area under irrigation: – – – • 40 million ha in late 1900 major boom in 20 th century Currently: 260 million ha 18% cropped area – 40% food production 60% in Asia (population growth, green revolution) 50% in 3 countries (India: 57 Mha, China: 50 Mha, Pakistan: 18 Mha) Irrigation in NE: – – relatively small area: 37 Mha Significant: 39% of cropped area - 50% food production Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Irrigated land as a percentage of arable land Irrigated land as percentage of arable Irrigated land as a percentage of arable land Irrigated land as percentage of arable land 1980 1990 2000 World 16% 18% 20% 9% 10% 11% 8% 10% 22% 24% 27% Latin America and the Caribbean 12% 13% 14% Near East and North Africa 22% 29% 3% 4% 4% East and Southeast Asia 37% 34% 39% South Asia 29% 34% 40% 6% 7% 7% Latin America 11% 13% 14% Caribbean 23% 24% 23% 4% 4% 5% Developed Countries Transition Economies Developing Countries Sub-Saharan Africa Continental and other regional groupings Africa Oceania Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Irrigation – Largely a public sector business • Public Sector – – financed most Irrigation – Largely a public sector business • Public Sector – – financed most irrigation expansion (capital costs) involved throughout project cycle of irrigation schemes retained ownership of infrastructure remained responsible for service delivery (OMM), recurrent costs. • Classic vicious circle of problems – – – – intolerable financial burden on public water service charging: misunderstanding, issues low service charge collection rates poor, inflexible service delivery economically sub-optimal water allocation increasing liabilities on poor households poor maintenance; infrastructural dilapidation; reduced production and productivity; declining willingness and ability to pay water service charges • End result when publicly funded irrigation should be contributing more and more to global food security, its productivity is actually declining, its capital assets deteriorating as a result of poor service delivery, especially OMM. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

This happens at a time when expectations from public irrigation schemes are higher than This happens at a time when expectations from public irrigation schemes are higher than ever • Facing new economic challenges – – Food security for more population Energy supply / biofuel FAO (2006 a) forecasts: irrigated area in NE to increase by 59% in 2050 (from 39% total arable land to 45%) • Which requires better services – – traditional OMM skills (flow distribution and care of physical assets) not enough Need to cater for new challenges such as: • • • water use efficiency; adaptive service delivery; user participation; demand management; environmental imperatives and climate change Producing more with less water • And calls for new management options Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Does the private sector provide an opportunity for addressing the issue? • Private sector Does the private sector provide an opportunity for addressing the issue? • Private sector has been active in investing and managing agric. , water. – Large-scale commercial enterprises – Traditional small-scale irrigation systems – Privately owned and operated boreholes • Water supply and sanitation faced similar challenges – Devoted water service delivery to private sector – Slow start in mid 80 s, reached 242 contracts (25 million people) by late 90 s – Privatization of WSS services driven by Government, to reduce charges • • NOT by private sector keen to offer services at competitive rates NOT by users looking for a better deal – Mixed, controversial results, but promising to inspire I&D Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

OBJECTIVES OF THE PAPER AND PRESENTATION • To explores the potential role of public OBJECTIVES OF THE PAPER AND PRESENTATION • To explores the potential role of public private partnerships in improving water management and control of water use, and diversifying farm production into higher value products. • To provide an overview of the experience on PPP in I&D gained worldwide and to examine the interests of potential private sector partners • To analyze the case studies with a view of profiling possible routes to facilitate private investment and achieving national goals related to water management It should be firmly understood however, that the purpose of this discussion paper is not to advise, but rather to provoke and inspire discussion. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Direct Financial Interests of Private Sector Partners • Private sector already involved in irrigation Direct Financial Interests of Private Sector Partners • Private sector already involved in irrigation (private farmers, investors, etc. ) • Different from public sector service provision which is based on investment in and operation of bulk water services for irrigation • Potential revenue of private sector participating in existing public models is to be derived not from production of irrigated crops but from provision of services • Decision to participate hinges on answers to questions: • How profitable is the proposed venture likely to be and over what time frame? • How soon would the profits kick-in? • What is the cost of financing and how bankable is the proposed venture? • What is the opportunity cost of investment finance? • What are the risks and how sensitive is the bottom-line to those risks? Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Trends of private sector involvement in irrigation operation and bulk water supply Components of Trends of private sector involvement in irrigation operation and bulk water supply Components of typical I&D scheme: • Water Mobilization: interception and management/timely release of water in a regulated fashion. Sometimes this component involves storage. • Water Conveyance: from source to scheme border; infrastructure and applicable operating rules • Water Distribution: delivery to fields through network; may involve rotating supplies, and in accordance with rights Categories of functions that engage I&D stakeholders: • Investment: scheme identification, planning, appraisal, financing, design and implementation. • Regulation and Control: water allocation, bailiff functions, maintenance, audit and price setting/regulation. • Operation, Management and Maintenance (OMM): water allocations, water delivery (system operation) and system management (accounts, customer liaison, etc. ) and system maintenance. • Agricultural Production: self explanatory Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Financial or transaction models for financing Public Private Partnerships in I&D • I. Public Financial or transaction models for financing Public Private Partnerships in I&D • I. Public Contracts comprise: 1. Service Contracts: usually short term arrangements under which the public sector engages the services of a private entity to undertake tasks such as system maintenance, fee collecting, etc. , that are difficult to undertake with the administrative means available to the relevant public sector institutions. 2. Management Contracts: similar to service contracts but transfer responsibility to the service provider for a fixed term. Such arrangements vary in complexity and sometimes involve the secondment to or management by the private entity of public employees. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Financial or transaction models for financing Public Private Partnerships in I&D • II. Public Financial or transaction models for financing Public Private Partnerships in I&D • II. Public Service Delegation (PSD) comprises: 1. Lease: service provider is responsible for operating and maintaining a scheme, but is not responsible for its capital financing. Contracting authority is paid a fixed rent by the service provider meaning that the latter carries all the commercial risk 2. Affermage: similar to a lease, but the rent payable depends on the revenues collected by the service provider, thus the commercial risk is shared in some way between service provider and contracting authority. 3. Concession: gives the service provider full responsibility not only for OMM of the scheme but also its financing. Ultimate ownership of the assets is vested in the government and full use of the assets reverts to government when the contract ends. As such, concessions arrangements represent considerable risk to the private interest. 4. BOT: apparently similar to concession, but actually quite different. Service provider receives a fixed amount from the contracting authority regardless of what actually happens in terms of water availability and use. Thus, BOT is similar to a service contract than a PSD. Several variations of BOT exist: • • • BOO (Build-Operate-Own), under which the assets remain indefinitely with the private interest DBO (Design-Build-Operate), under which public and private sectors share responsibility for capital investments ROT (Rehabilitate-Operate-Transfer), which is sometimes favoured where infrastructure needs major work. 5. Divestiture: is basically the sale of a public asset to a private entity and can hence be thought of as privatization. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Determinants and Drivers for PPP in I&D Private Sector Decision to get involved hinges Determinants and Drivers for PPP in I&D Private Sector Decision to get involved hinges on answers to questions: • How profitable is the proposed venture likely to be and over what time frame? • How soon would the profits kick-in? • What is the cost of financing and how bankable is the proposed venture? • What is the opportunity cost of investment finance? • What are the risks and how sensitive is the bottom-line to those risks? Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Determinants and Drivers for PPP in I&D - Changing External Environment – Markets, Trade Determinants and Drivers for PPP in I&D - Changing External Environment – Markets, Trade and Comparative Advantages Significant implications for irrigation brought by new developments in communication and transportation Consumer taste change, higher demand for exotic fruits and vegetables Human migration, people taking their food preferences with them Increases in airfreight services satisfy seasonal niches from new sources Financial comparative advantage in countries where production costs are lower Market landscape has changed and continues to change for the irrigated producer Rate of change is accelerating as a result of emerging interest in bio-fuels. Public irrigation assets now have significant range of new, potentially more profitable markets Revenue increase means that improved irrigation services may now be affordable, even at costs that attract private sector providers Necessary farming system changes mean that the farmers share some of the risks of the service provider. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Determinants and Drivers for PPP in I&D State of Market and Rural Infrastructure Linkage Determinants and Drivers for PPP in I&D State of Market and Rural Infrastructure Linkage Micro-determinants - determinants which apply to specific investments in specific locations • Accessibility to new external markets Possibility a local producer can take advantage of an external market depends on the nature of the produce; the elasticity of the market; the ability of a local producer to fill a temporal niche and the difficulties involved. • Availability of affordable, reliable, appropriate, transparent transportation services There is no point in producing new high value crops if they cannot be transported, in good condition, from farm to market • Market chain enhancements Getting quality products to external markets in good conditions often requires market chain investments in the form of go-downs, cold chains, transportation, etc. • Added value opportunities Revenues and profits can be greatly increased by adding value to a raw product (grading; retail packaging; processing). Added value also requires investment capital which must also be available. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Determinants and Drivers for PPP in I&D When these local/micro externalities are favorable, or Determinants and Drivers for PPP in I&D When these local/micro externalities are favorable, or becoming so, a well managed I&D venture is likely to generate greater revenues and greater profit, either or both of which would reduce or shift some of the commercial risks accruing to privatized service provision The interesting question in this respect is “who is responsible for initiating, facilitating and maintaining favorable changes in the state of market and rural infrastructure linkage? ” Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

World Experience in PPP - An Interim Assessment Actual Interest of the Private Sector World Experience in PPP - An Interim Assessment Actual Interest of the Private Sector Review of 21 cases where PPP was involved in IDSP: • • 58% were concerned only with OMM 42% with OMM and investment 80% of the cases including investment also included OMM sub-functions: • • • 42% of the cases studied include water allocation 100% include maintenance 89% system operation. OMM, followed by investment, is clearly the niche that has so far proved to be of most interest to the private sector NB. In all cases, the initial demand for I$D service provision came from Government! Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

SERVICE PROVISION – AN INTERIM ASSESSMENT Case studies - Not exhaustive assessment of IDSP SERVICE PROVISION – AN INTERIM ASSESSMENT Case studies - Not exhaustive assessment of IDSP but short overview - PPPs clustered in terms of service function and institutional modality, and presented so as to show demand initiator, key features, risk allocation and results. - Examples of PPPs concerning estate type production having no “client” farmers are included, as they represent investments in the construction and operation of irrigation infrastructure, even though they are not strictly service providers Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Examples from the NE Region Agriculture and Land Water Use Commission for the Near Examples from the NE Region Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Examples from outside NE Region – Function: Investment Agriculture and Land Water Use Commission Examples from outside NE Region – Function: Investment Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Examples from outside NE Region – Function: OMM Agriculture and Land Water Use Commission Examples from outside NE Region – Function: OMM Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

World Experience in PPP - An Interim Assessment - Focus of PPP in IDSP World Experience in PPP - An Interim Assessment - Focus of PPP in IDSP • 1. No examples of PPP for regulation and control • 2. With few exceptions, demand for PPP for I&D comes from Government looking for ways to reduce recurring budgets or, to a lesser extent, trying to establish improved service delivery for farmers • 3. Public Service Delegation predominates and usually involves OMM in some way • 4. In the NE region, there is a higher than usual incidence of private investment and agricultural production as opposed to service delivery Private investment in irrigation facilities for the purpose of commercial production, while creating much needed jobs, has no impact whatever on high recurring budgets and service delivery to “client” farmers And this would seem to be the main driver of demand. Are the results promising? Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

World Experience in PPP - An Interim Assessment - Relative Performance of Public and World Experience in PPP - An Interim Assessment - Relative Performance of Public and Private Irrigation Initiatives • The current interest in PPP for ID arises because public initiatives are not working so well. Bloated establishment costs, arcane bureaucracy and inappropriate accountability relationships all contribute to declining services and the dilapidation of infrastructure • The shift towards PPP is an implicit assumption that the performance of the private initiatives can be expected to be better than that of the public. This would seem to be supported in practice. In a convincing number of examples where the drivers of demand included poor service delivery, establishment of the PPP improved the situation • The longer term sustainability of private service has – – – yet to be proved risk (at least to date) is always carried by the private investor ability of affordable water service revenues to cover large repair costs and the like has yet to be seen future of PPPs where unfamiliar institutional arrangements and assumptions have yet to be fully tested remains uncertain Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

World Experience in PPP - An Interim Assessment - Relevance of Water Supply and World Experience in PPP - An Interim Assessment - Relevance of Water Supply and Sanitation Interventions Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

cture World Experience in PPP - An Interim Assessment - Relevance of Water Supply cture World Experience in PPP - An Interim Assessment - Relevance of Water Supply and Sanitation Interventions Differences in Functions and Risks between WSS and I&D 1. IDSP involves far greater quantities of the deliverable commodity, i. e. water 2. Affordable revenues from water are much lower under I&D than under WSS 3. 4. dependent on the success of the service Successful irrigation depends on more factors than reliable service delivery alone: some of these factors (but not all) are beyond the control of service providers and users, yet affect the ability of the user to pay. Climate, markets, transport, farmer skills, pests and disease, natural disasters, etc. 5. there alternative solutions to water supply and sanitation, if it fails people can collect water and relieve themselves elsewhere 6. 7. There is no risk for the WSS service provider to share with the user by the service provider itself, whereas for irrigation it most likely would not be. All this is not to say that WSS PPP is not relevant, but rather that for I&D: Ø a proposed venture needs to be tested against additional, more stringent criteria Ø the criteria have to be meaningful to all stakeholders and cover the concerns of each Ø the enabling environment for IDSP is more extensive than for WSS. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT Policy Fixes POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT Policy Fixes Alone - Is It Just of a Question of Constraint Removal? Is the private sector discouraged merely by constraints within the power of Government to change? The answer is NO because: 1. Case studies confirm that it is not the case, although constraint removal is a key factor 2. Government is the party inviting 3. Not all constraints are within the control of policy-makers to remove 4. Removal of constraints may not automatically guarantee profitability THE KEY QUESTION IS ABOUIT RISK MITIGATION AND RIGHTS Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Managing POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Managing the Risks – Who Takes What? 1. Risk Categories First : externalities that arise from broader challenges faced by or arising in the country concerned i) political instability ii) inadequate political capital for enforcing regulations necessary to guarantee payments of service charges iii) institutional lag on the part of public institutions unwilling to devolve responsibility iv) devaluation (which reduces the value of local revenues to internationally funded PPPs) v) revenue risks arising from changing terms of trade (esp. where domestic markets are not protected). Second : commercial risks i) farmers’ ability to pay (insolvency or crop failure - where applicable becomes the insurers’ risk) ii) willingness to pay (arising from different factors) iii) difficulties on the part of all stakeholders to adapt to new models iv) risks concerning economies of scale, competition, unhelpful (or absent!) subsidy structures, etc. Third : risks arising from the fact that everything revolves around supply of water i) compromised availability ii) difficulty to supply at prices affordable even from higher value farming systems iii) difficulty to supply if inherited infrastructure proves to be of poor quality Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT Managing the POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT Managing the Risks – Who Takes What? IDSP cannot take all kinds of risks, especially non-commercial ones - Long-terms risks specific to water require confidence and COMPLIANCE from Government substituting a systematic subsidy by circumstantial subsidy - International mitigating instruments to take charge of country risks could require international agreements and participation of external entities Parties to Share Risks: At least 3: and possibly: 1) Government agencies; 2) Private service providers; 3) Farmers 4) Public agencies (operating on commercial bases and depending entirely on service revenues) 5) insurers (to take or share risk at least of certain crop failures) - Rights: Need for dynamic/evolutionary process in the context of broader reform and change Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

Entity Relationship to Risk and Service Type Agriculture and Land Water Use Commission for Entity Relationship to Risk and Service Type Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Institutional POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Institutional Makeover – The Prospects for Reform PPP cannot be established without a degree of institutional adjustment 1 - Devolution might take place during a broader process of reform, and PPP arrangement can actually be introduced with minimal institutional restructuring Reasonable to conclude that IDSP can be established with minimal institutional makeover Nonetheless, experience confirms that successful devolution of irrigation scheme service delivery, at least where OMM is concerned, requires a fundamental shift in institutional mindset, especially where accountability is concerned 2 - Service users must fully understand be happy with the new arrangements “buyer-seller relationships” OR “Actors powers and accountability” 3 - Need for international mitigation of country risks, through some sort of international institutional arrangements requires an international acknowledgement among those likely to be involved, that PPP for irrigation and drainage is the way to go Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Natural POSSIBLE ROUTES TO PROMOTE PRIVATE FINANCE IN IRRIGATION CONSTRUCTION AND SERVICE MANAGEMENT - Natural Resources Limitations 1. Natural Water Supply Shortage PPP is not obvious driver for irrigation expansion Water supply management to lead the way to demand management 2. Water Rights ISDP raises issues related to water rights that need to be addressed 3. Land tenure Unclear or insecure tenure arrangements can constitute constraints on risk taking under PPP arrangements 4. Climate Change Climate change and drought affects irrigated farming in many ways. Long- term trends will affect farming systems Where IDSP revenues are based on amount of water delivered, these will reduce 5. Regulatory Imperatives Enabling environment that facilitates IDSP expansion and guarantees the rights of all parties and stakeholders Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

CONCLUSIONS AND RECOMMENDATIONS The most obvious conclusion from this brief study is that IDSP, CONCLUSIONS AND RECOMMENDATIONS The most obvious conclusion from this brief study is that IDSP, though promising is not yet a ‘silver bullet’ for fixing the increasing problems with publicly funded irrigation in the Near East region, the reasons being: 1. there is an exotic mix of players, each of which has particular conditions and expectations, not all of which are complementary 2. each player will be subject to its institutional lag, which will not necessarily be synchronized 3. there is a need for proactive corporate social and environmental responsibility/due diligence not usually associated with a private sector initiative 4. the demand for PPP usually originates with an entity, usually government, with an agenda which may be fundamentally different from that of those most affected by the intervention (i. e. the farmers); and 5. the need for smart allocation of risk. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

CONCLUSIONS AND RECOMMENDATIONS • The problems are generic and apply anywhere in the world, CONCLUSIONS AND RECOMMENDATIONS • The problems are generic and apply anywhere in the world, not just the NE - However, the Near East is well integrated with European trading partners and is under pressure to make its irrigated sub-sector perform under conditions of increasing aridity. - Where sufficient political capital is available, none of the constraints mentioned should be immutable, as witnessed by: - Successful models, involving for the most part purely private service providers, but sometimes ones which combine public and private players, and which usually comprise some form of public service delegation, focused on operation, maintenance and management. • The most pressing constraint is likely to be the sharing of risk under PPP - For PPP to really take off, risks need to be manageable or mitigated, not least in the eyes of the private entity - There are normal commercial risks that potential investors will assess before deciding to proceed. But since these are effectively incurred on behalf of governments, it may be legitimate for governments to indemnify a portion of the risk since this is likely to be much cheaper than delivery of service Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

CONCLUSIONS AND RECOMMENDATIONS • Risk mitigation is also necessary where revenues fall due to CONCLUSIONS AND RECOMMENDATIONS • Risk mitigation is also necessary where revenues fall due to crop failure, or natural disasters – Such risks can be transferred to professional risk takers, i. e. insurance companies – It is recommended therefore, that where such externalities discourage service offers and farming system transformation, insurance models are developed to protect both service providers and users. • Finally, there is a need to mitigate risks that devaluation will compromise returns on foreign capital – Would require international mitigating instruments and calls for IDSP to be mainstreamed as an agreed strategy at the level of regional and even international development policy. – It is suggested that regional economic institutions have a much more proactive role to play in opening up market opportunities and driving performance levels in the sub-sector through progressive adoption of PPP models. If they deem the initiative opportune. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

ABOVE ALL Given that water scarcity is a priority issue in the Near East ABOVE ALL Given that water scarcity is a priority issue in the Near East region it is recommended that countries consider well regulated PPPs in the reasonable expectation that they are more able and more motivated with respect to the provision of good water services to farmers which, in turn, could result in better use of water resources. Countries are therefore advised to work towards crating the enabling environment for the active involvement of the private sector in irrigation water management wherever possible. Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008

RNE Website: www. fao. org/world/regional/RNE/ Thank You Agriculture and Land Water Use Commission for RNE Website: www. fao. org/world/regional/RNE/ Thank You Agriculture and Land Water Use Commission for the Near East - Fifth Session - Cairo, Egypt, 26 -28 February, 2008