2 October 2014
IWMI Study Analyzes Cost Recovery in Large-Scale Irrigation Systems
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The International Water Management Institute (IWMI) released a report ‘Revitalizing Canal Irrigation: Towards Cost Recovery.' Identifying that most large-scale irrigation systems are government owned and increased fiscal pressure on governments has reduced investment in infrastructure maintenance, this report examines how to successfully implement cost-recovery systems.

IWMI logo24 September 2014: The International Water Management Institute (IWMI) has released a report, titled ‘Revitalizing Canal Irrigation: Towards Cost Recovery.’

Identifying that most large-scale irrigation systems are government owned and increased fiscal pressure on governments has reduced investment in infrastructure maintenance, this report examines how to successfully implement cost-recovery systems.

The report divides the analysis into two sections, addressing conceptual issues and efforts towards improving cost recovery. It also presents examples on the allocation of working expenses from India and Pakistan. The report identifies the need to use existing funds more efficiently by reducing bureaucracy and reallocation of funds from new project development to the operation and maintenance (O&M) of existing irrigation facilities.

The report emphasizes the need for a three tiered approach to implementing cost-recovery, including: improve services first; provide services in an efficient and accountable manner; and bring tariffs into balance with costs. [Publication: Revitalizing Canal Irrigation: Towards Cost Recovery]

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