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Presentation on risk of private investment at Kbal Por pumping station, Takeo province

Presentation on risk of private investment at Kbal Por pumping station, Takeo province. Prepared by: Tang Sophat and Sok Touch Local private investor, Doun Keo District, Takeo province. A. Location and Some figures. East. Prek kbal Po. ;. Connect o VN. Pumping Station. Main canal. bwg.

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Presentation on risk of private investment at Kbal Por pumping station, Takeo province

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  1. Presentation on risk of private investment at Kbal Por pumping station,Takeo province Prepared by: Tang Sophat and Sok Touch Local private investor, Doun Keo District, Takeo province

  2. A. Location and Some figures

  3. East Prek kbal Po ; Connect o VN Pumping Station Main canal bwg bwg canal FWUC Kbal Por pumping station scheme map

  4. B. Station history

  5. C. Implementation of Pump station ( 2003-2007) I. Basic judicial Farmers proposed business persons to rehabilitate and re-implemented the station through Sambour commune chief and Traing District governor: Proposed letter for conducting business issued 25 July 2002( Approved by district and commune authority). Additional diary on proposed letter issued 21 October 2002 ( Approved by commune authority and Provincial agriculture department representative). Draft constitution of FWUC and planning activities on 2003-2011.

  6. II. Pump station process 1. Repaired the station+ Canal system: Total investment 72 600 USD

  7. 2. Organization of FWUC’s structure: collaboration model between private and public Organized constitutional document Not approved as formal document yet. Prepared planning activities: Cultivated plan+ Set water turn( Proposition for seasonal water supply).

  8. Registration of member and propose for water(25% prepaid). • Prepared a list for ISF collection + Bill.

  9. 3. Water supply and sharing Water supply and sharing implement by business persons ( 4 staffs) responsible for station management. Whereas each village representatives follow up water circulation along the canal. Contract for providing water between business person and farmers ( Represented by water supply president and each village representative). Water providing was conducted according to 3 days water turn ( 3 water turns/6 villages). Farmers have to make proposal for water to business person through each village representatives before cultivated season.

  10. 4. ISF collection Investment= ?? Implementation= ?? FWUC= ?? • Village representative directly collect ISF from farmers and transfers 100% of the fee to business person( They will receive 10000 Riels per ha+ incentive). • ISF( set annually by discussing with community representative 1 person/ village, commune council, village chief, Provincial agriculture department representative, and according to field visit to others scheme along with fuel market price.

  11. 5. Financial management • Income in 2003-2004 $ Cash to collect Cash collected

  12. Annual processing expenditure • - Early wet season • Income-expenditure comparison • - 2002-2003. Incomes Processing expenditure

  13. III. Potential and involved institutions 1. Potential of location (Station and irrigated area) • Location, water source, and canal system favor for irrigation. • Good soil fertility • The pump station is the most significant requirement for the farmers in the command area. • Increase the times of cultivation- 2 or 3 times per year. • Good facilitation for transportation both in land and waterway. • Easy access for product market( Vietnam and Central province).

  14. 2. Business person’s Strength and Threat • Strengths • Own methodology, materials, • technical and enough capital • for investment. • The farmer realized the disadvantages • when the station was not worked • (Many previous experiences). • Good participation from farmers (labor and concession-land for canal construction). • Appeal to many donors, national and international organizations.

  15. Threats • There is no encouragement and guarantee for private investment on irrigation field which need for any supports from local institutions and political policy ensured from ministry and government level. • There is no institution/coordinator ( conflict between business person and farmers). • There is no formal contract. • Informal FWUC and management structure is not clear. • For ISF collection ( no rule for the farmers who are not willing to pay the ISF). • Water sharing (Unrespect water turn, stealing water, and waste water). • Some time (lack of water source, the station got flooded).

  16. 3. Local authority’s support • Local authority intent to see the processing of the pump station But……. • Not enough participation (implementation of the contract, strengthening the constitution...Etc. • There is no formal contract which was approved by province, ministry, and government level.

  17. 4. MoWRAM and PDoWRAM’s support • MoWRAM and PDoWRAM encouraged private investors to contribute in irrigation development. But…… • Lack of rule and procedure for private investment on irrigation. • Less support from MoWRAM and PDoWRAM to motivate and encourage the private investors.

  18. Local authority /commune Renew Contract Business person Water user ¼FWUC District authority /Province 5. Conclusion Rule and Regulation • Modernization/ renewal of the contract should be held annually: • Set the ISF • Enforce FWUC constitutions Agreement • O & M should be clarified • Clarify the level of service which was received by investor (Maintenance- repair, water sharing). • Clarify about the level of norm for infrastructure maintenance.

  19. Should develop the rules for investors and provincial authority to: • Check whether or not the investors comply with public advantages. • Make transparency financial management. • Check and make qualitative manner of O&M which was provided by investors. • Check on irrigation scheme extension project if it possible to do. • Provide security for the investors to gain the benefit according to the investment (During the agreement).

  20. 5. Proposition The government should develop the rules and procedure relating to private investment on irrigation field. The government, Involved expert departments, and all ranks of local authority should provide strong support for private field in investment on irrigation. Both signers should follow and comply with the contract. Please all the donors, national and international organizations provide strong support for private field with additional ideas and technics.

  21. 6. Additional ideas/Recommendation • ISC could play a role as coordinators between investors and FWUC/Local authority. • Should have separated leading structure between investors and FWUC. • Transparency of budget management and quality of maintenance.

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