Sustainable Development

Term Paper Assessing Irrigation Projects compatibility with Sustainable development

ISG MBA program 2011

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Alexandra-Victoria Bonte
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Word count: 3,675

Table of Contents

1. Part I An introduction to measuring sustainability

p.3
2. Part II -CEB multinational bank and their sustainable

development irrigation projects in Turkey p.5

3. Part III Turkeys irrigation projects

p.8
a. 1 1st Project

p.8
b. 2 - 2nd Project

p.10
c. 3 3rd Project

p.11
d. 4 4th Project

p.12 4. Conclusion p.13

5. Part I An introduction to measuring sustainability Thesis Question: How to assess if irrigation projects can be compatible with the principles of sustainable development and how can international multilateral development banks maximize their sustainability? These are the two questions that I will answer and define throughout this paper. First of all, to make this assessment, I will have to refer to the following definition of sustainable development: "Development that meets a set of criteria of economic efficiency, equity between and within generations and environmental quality." The first conclusion that can be made about this type of project is the enormous amount of data that is available. Indeed, the amount and detail of data and the analysis necessary to carry out a thorough assessment of the sustainability of complex projects such as irrigation projects go beyond a mere review. Therefore the assessment will be directed towards identifying the critical aspects that particularly affect the potential for sustainability of irrigation projects. It has to be noted that in order to maximize and optimize the sustainability of an irrigation project it is necessary to review the conception and ensure that the implementation is carried out according to planning as well as the day-to-day operations. A summary of findings and recommendations is presented below. Here are some key issues for the sustainability of irrigation projects: The reliability of the information used for design projects including the planning of crops (crop management plan); Management of water resources (distribution between users, payment of royalties, the rational use of water); Environmental degradation (erosion, salinization, pollution of underground waters); The management of irrigated land by beneficiaries (land distribution among farmers). How to optimize the sustainability of irrigation projects? A first set of recommendations can be retrieved from the analysis of technical and experienced advisers. These recommendations are primarily the domain of competence of the some Technical Advisors: Further data on beneficiaries, particularly with regard to their interests, market access, utilization and prices of pesticides, their commitment to pay for the services offered and their motivation to participate in the
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project development; Make more reliable estimates of project costs; Develop the institutional capacity of the borrower using local area networks (UN, EC and NGOs) to better take into account aspects of sustainability; Extend the evaluation of the project to the entire river basin where it is localized to integrate environmental aspects and the situation of the beneficiaries of the whole area of influence of the project; Develop effective tools to define optimal conciliation in cases of conflicts of interest; Introduce a risk management strategy (social, environmental, financial, implementation, economic, etc.). And develop a methodology for taking into account aspects of inter / intra generational in monitoring the project. There is a second set of recommendations for the intervention strategy for the financing of this type of development projects These recommendations were divided into 2 categories: 1 - first, those concerning the multilateral strategy vis--vis the country 2- secondly, those which relate to the operational level. 1) Recommendation on the Country Strategy: These projects that are financed by a multilateral bank tend to not involve sufficiently the ministerial entities that are or shall be the final entity responsible for the implementation of the project. These entities need to become more pro-active and need to be encouraged to be more attentive to the interests of beneficiaries and affected populations. 2) Recommendations to the operational level: Establishment of an external consultant to guide and support the implementation of the project when this is not available locally. The consultant should liaise between the investors and the ministerial entities and thus would enable advisers to focus more on monitoring the project and its success (achieving its objectives). The consultant should also provide information on the availability of local networks that could provide assistance in project implementation. Establishment of a PIU (Unit for the implementation of the project), responsible for helping to better plan the project management, assessment of needs by developing local survey of the population and other appropriate means . The PIU will also offer assistance to local development through targeted educational programs on irrigation practices and on the protection of the environment. The PIU will be under the supervision of an oversight committee composed of TCs and consultants. In addition, the operating costs of the PIU can be included in project costs.

Concerning the international multilateral development banks I will be referring to the CEB (Council of Europe Development Bank) which provides project financing through loans in developing countries. CEB finances projects in the water sector and this report concentrates on the irrigation projects to try to identify their contribution towards the environments .

Part II -CEB multinational bank and their sustainable development irrigation projects in Turkey As economic and social changes move in different patterns they can trigger adverse environmental effects thus necessitating a method that even the regional disparity in irrigation needs for example, and at the same time protect the environment. In pursuing this objective the CEB seeks to actively contribute to the economic growth of a region in the respect of the environment, protecting the natural environment and playing a role in the sustainable community agenda. The CEBs approach to development is to foster a sustainable relationship between populations and their environments in the rural setting. Therefore the CEB seeks to ascertain that the project it finances are designed and implemented in such ways as to: Optimize social and environmental benefit Minimize negative environmental impact Comply with social and environmental standards Thereby ensuring environmental sustainability of projects that the CEB finances. This study, which covers the irrigation projects will examine in particular the results achieved by the projects, their impact on development and the contribution they have made to improve the environment including, where appropriate, the sectorial issues. It should be noted that the sample selected is small and geographically limited therefore not entirely representative of all investment financed by the CEB, but its findings mirror those of other related studies sufficiently to make them worth of attention. The projects selected for this study cover the irrigation needs in a

particular region of Turkey. The implementation of projects in the sample was not responsive to technical forecasts and budgeted costs and their design left something to be desired: the irrigation projects were often based on projections that estimated demand, and did not adequately address the saving measures and reduction of water loss and not devoting enough attention to the full exploitation of water. Overall, the long delays that sometimes occurred in the implementation of the projects have frustrated the expectations of some developers who were counting on taking advantage of the leverage effect of CEB loans. The overall quality of the available data, the environment and plant performance was not sufficient to allow firm conclusions on the environmental impact of projects. Even if they were available, the data often revealed poor compliance with the rules in force in the Turkey when these projects were implemented, the EU and national legislation, were much less severe. In economic terms, it is true that projects in the field of water resources almost always contribute to improve the social, economic and environmental. They tend to create jobs, and this applies in particular for irrigation projects in rural areas, where unemployment is high. Turkey has hot, dry summers, with rainfall levels that oscillate between two extremes and can cause severe flooding and drought, during which rainfall can even drop below half of average levels. Precipitation is unevenly distributed and you examine this aspect in view of population distribution, this would be a very different distribution of water resources per inhabitant Water requirements for irrigation can greatly vary, from a minimum of 2 000 to a maximum of 20 000 m3/ha/a accounting for more than 80% of water consumption. The implementation of this project had delays between 4 and 12 years well above the amortization period of the loan. Reasons for delay : The implementation schedules were unacceptably long due to institutional weaknesses that were among the factors for the projects in the irrigation sector. This is one of the reasons which led the Bank not to fund more irrigation projects in Turkey. In one project the Bank participated with a local bank, for a groundbreaking operation in which the farmers had agreed to finance 65% of investment costs related to collective irrigation schemes. Farmers counted on this way to solve the problem of continual postponements in the implementation of projects fully funded, because of budget difficulties as it was their government. Within a few years, however, they have withdrawn from the operation, even for the government's interference in
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tender procedures, which delayed, sometimes several agricultural campaigns, access to irrigation. In one other project the expropriation of the land was so difficult that the project was put to an end all together. All projects have encountered difficulties in the public procurement procedures: Bids accepted at extremely low prices, with the consequent need for further negotiations, quality problems and undue delays in implementation; Excessive delays in the receipt of tenders and award of contracts, due to the nature of the procedure and weaknesses in project management; Changes in design, disputes with suppliers and failure of appointed contractors (issues not directly related to the procurement procedures but have also had a disturbing effect). Problem : All implementation exceeded the agreed budget, taking into consideration the adjustment of the local currency to Euro. The irrigation system is significantly under-used. One of them operates at less than 10% of nominal capacity: the question is indeed found to be lower than expected because of institutional conflicts and 4 years of severe drought that led to a sharp reduction in available water resources, by dropping the demand of 40 % at the end of the period of drought. Water demand has not returned to previous levels. Another project is also working well below capacity, but at least managed to reach an important goal: to put an end to water rationing. One reason that may partly justify the use of under water supply is a legitimate concern to ensure the safety of water supply in an area subject to highly variable hydrological conditions. Furthermore, at the implementation of these investments, demand management and water loss was much less refined. Nevertheless all projects had a positive impact on the environment. The irrigation projects made it possible to effectively counter the erosion of steep slopes, and the desertification of the soil . The implementation delays had a negative impact on the economic viability on the crop or cultures subsidized.

Part III Turkeys irrigation projects 1 1st Project The projects that I examined for this study started in 2002 and the data that I was able to examine is dated back 2006. The first project aimed at irrigating, by pumping, a total of 15 837 ha of agricultural land, and rehabilitating the gravity irrigation system of 946 ha, in the Lower Ceyhan River basin, in southern Anatolia. The project consists of the following three main components: 1. Cevdetiye Right and Left Bank Pumping Irrigation Part I: Hediren, Osmaniye, Degirmendere-Abidiye and Malaz I-II; 2. Cevdetiye Left Bank Pumping Irrigation Part II: Sarimazi-Dokuztekne and Yumurtalik; 3. Cevdetiye Right Bank Dilekkaya Gravity Irrigation Rehabilitation.

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The first component was completed, with the exception of Malaz II, and a very small section of Malaz I. The Hediren unit was completed in 2001 and the Osmaniye and Degirmendere units in 2005; it is expected that the Malaz I unit will be completed in 2006.

The second component has not been tendered yet. The detailed design of Yumurtalk is ready and DSI wishes to go ahead with the tendering in 2006. In reality the tender was launched only in 2010 The government estimated that the project would be completed in 2006 at the loan approval stage. With a new subproject being tendered in 2010 the earliest completion date will be 2014, i.e. an 8year delay. As the overall construction quality was judged low in Hediren and several cracks are visible on the main channel in Osmaniye. In Degirmendere, the concrete quality is good, but the side slope is too steep in several sections. The absence of an interception channel is creating severe maintenance problems, and several channels are filled with sediments. These issues create unnecessary and high cleaning costs for the Water Users Association.
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However, overall the works have no negative impact on environment, except temporary noise and dust nuisances during construction activities. The works do not produce or release pollutants in the environment, except slight exhaust gas emissions during construction.

Sustainability If the irrigation ratio is low is could present a serious risk for the economic sustainability of the project. Another negative aspect is that the farmers do not use it and they do not plant second crop. Furthermore the rather high construction and operation costs of the new schemes are detrimental on the Internal Rate of Return even assuming a 100%
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irrigation ratio. It is obvious that the 100% ratio corresponds to an ideal number and may never be reached. However the project has many positive social and economic impacts. Of course the IRR will change if there is need to add pumping stations for which energy cost are considerable.

Overall the project can be considered sustainable, as the farmers will benefit of acceptable cost for water consumption compared with the fuel oil expenses for pumping water from wells

2 - 2nd Project The second project aimed at irrigating a total area of 4 250 ha in the Delice river basin near Kirsehir, central Anatolia. The water source is the Karaova dam, completed in 1998. The project area covers 16 villages, with a total population of 6 243 people in 2000. DSI had estimated at the loan approval stage that the project would be completed in 2004. The actual completion date was estimated in 2006/2007, i.e. a 3-year delay. Insufficient counterpart financing, revision of the design for the downstream section and problems with expropriation are the main reasons of the delay. Additional expropriation payment delays may present a risk for the completion of the project within the new deadline. It shall be noted that the irrigation was hampered by landslides that affected the right bank main channel. The presence of landslides is an indication of design and construction shortcomings. The inadequate construction quality is also reflected in several sections of concrete channels that will have to be rebuilt. The project has some environmental negative impacts such as the water logging and salinity become major problems for the project. Some areas in the irrigation area have salt concentrations reaching 3% and drainage is necessary for 1 192 ha The irrigation ratio is very low, particularly when one considers that no second crops are produced. It is a very discouraging sign for the sustainability of the project. This low ratio depends upon the adequate level of spring rains in the region that is deemed sufficient for the wheat crop. Furthermore, there is problem as the cadastral records have not been properly applied to the irrigated area, and some farmers do not declare the exact surface that they have irrigated.

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3 3rd

project The third project aimed at irrigating 9 000 ha of land in the Biga plain, in southern Marmara region, and north-western Anatolia. The water supply source is the Bakacak dam, located on the Kocaay stream. Its construction started in 1990 and was completed in 1999. The irrigation project was tendered in 1994, and the implementation started in 1995. The CEB decided to contribute to its financing in 2002. As it is the case in other agricultural regions, the main environmental threat is caused by fertilizers and pesticides that are not used efficiently and by flooding types of irrigation that cause soil leaching. In 2005, several farmers signed agreements with food processing factories established in Biga. As a result of these agreements, new agricultural methods were adopted in the region. Now, with the exception of rice, irrigation for major crops are made by rain guns, or drop by drop method. These changes in agricultural habits should normally have had beneficial effects on environment by reducing the quantity of fertilizer, insecticide and water, and thereby prevent leaching of soil nutrients and contamination of the ground water table by chemicals. The total surface of irrigated land in the Biga plain in 2005 was 71% of the total irrigable surface of 5 335 ha. This is an encouraging sign of the sustainability of the project.

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4 4th Project The 4th project aimed at irrigating a total surface of 20 906 ha, that is, 11 875 ha by gravity and 4 141 ha by pumping in the Gnen, and 4 890 ha by pumping in the Tahirova plains, in the Balkesir region, in northwest Anatolia. The project includes the construction of the Gnen weir, as well as flood protection, stream rehabilitation and drainage works. The civil works have no negative impact on environment, except temporary noise and dust nuisances during construction activities. The works did not produce or release pollutants in the environment, except slight exhaust gas emissions during construction. The main environmental threat is caused by the agricultural activity. Traditionally, fertilizers and pesticides are not used efficiently in Turkish agriculture and rational water management practices are missing in several regions. In the Gnen Plain the Water Users Association financed, together with other associations (Chamber of Agriculture, Association of Dairy Farmers, Rice Commission, etc.), the creation of a well-equipped soil and water analysis laboratory. The Association will promote only the use of fertilizers that are compatible with the actual type of soil, and of pesticides that leave no harmful waste. Thus, they will avoid the problem of soil contamination by heavy metal The average land surface per farmer is about 3.5 ha, which indicates that farming is characterized by small landowners. The water fee collection rate is very high (about 85% for 2005 and ongoing), but it should be noted that the percentage of water fee per ha is rather low compared to the gross revenue (about 3%): The example of the Association in Gnen proves that the sustainability of a project is ensured if the final beneficiaries participate actively in its implementation and are convinced to obtain substantial benefits.

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Conclusion The agricultural water helps to meet the demand for food, and contributes to the growth of farm profitability and poverty reduction as well as to county development and environmental protection. The example that I demonstrated above was surface irrigation financed by the Government throughout a loan of a multilateral organization thus expensive. Nowadays the investment is more focused on rehabilitating and improving the existing systems. Nevertheless, as for the project examined above, the water productivity remains generally low, and returns to investment generally unsatisfactory. The role of government is changing. Farmers are playing an increasingly important role in decisions and investment, The challenge will be how to meet rising demand for food while at the same time increasing farmers income, reducing poverty, and protecting the environment, all from an increasingly constrained water resource base? Most growth should come from improvements in water productivity; sustainable increases in farmer incomes are essential and water for agriculture has to be used sustainably within a joined effort. The overall goal is to give strategic focus to implementation of the irrigation system in order accelerate productivity improvements within the changing context of demand and supply for agricultural water. . Environmental and social impacts of irrigation have been positive and negative, but concerns are growing. The irrigation projects help mitigate the impacts of drought and floods, stabilize river flows, and reduce erosion and silt loads. They have contributed to shaping the countryside and to social and cultural values. However, tension between agricultural pro duction and protection of natural resources is growing.
Much irrigated land suffers from

construction.

drainage problems, due to poor of

The

r isks of irrigated agriculture have grown: loss environmental water flows; groundwater overexploitation; pollution; destruction of natural habitats and livelihoods through drainage of wetlands.

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Water resource management is changing, and environmental and social concerns are growing. To reply to growing scarcity of water projects, there are now strong questions growing considering the reuse of wastewater and drainage water. The climate change also is access to water for irrigation. increasing the vulnerability of farmers of

The farmers main objectives are to increase their income; assets sus tainably and to reduce vulnerability and Water supplies. The latter is an essential prerequisite. The farmer thus needs to have a say in the management of the irrigation system, which will provide a water service of quality as well as a secure water entitlement. The IRR shall be improved through integrated system mod ernization. This can be achieved by improving the irrigation system to focus on delivering a sustainable, efficient, and demand-responsive water delivery service. Ensuring more irrigation. sustainable development of groundwater

Unplanned mining of groundwater has severe costs for the rural economy to improve the efficiency of water usage. Other integrated solutions can be used such as: aquifer recharge enhancement, rainwater harvesting, drainage, and urban waste water reuse. Irrigation can also reduce the vulnerability of the farmer but only if the following assumption can be achieved: (a) there is equity in land distribution; (b) investments and farmers in mind; water charges are designed within the needs of provide good water service;

(c) the irrigation project can (d) users are involved

in management

To manage the environment risk the farmers need to be provided with instruments to guide them towards environmentally friendly practices . Expansion of irrigation should take place within basin plans, using safeguard approaches. Particular attention should be given to the protection of environmental flows and of groundwater resources. Lets never forget one thing:

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Environmental constantly!

and social concerns increase

Thus it is with sustainable development that we can battle this issue and preserve our environment Bibliography NB: All information concerning projects from the CEB come from my personal experience onthe-field work during an internship at their bank. Irrigation projects Turkey Council of Europe Development Bank Paris Sustainable development World Bank Measuring sustainable development European Investment Bank

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