2014年-世界发展银行全球_The_Use_of_Output-Based_Aid_in_Small_Scale_Irrigation_Schemes_in_Developing_Countries_71页_2mb

Summary of the Report: The Use of Output-Based Aid in Small Scale Irrigation Schemes in Developing Countries

Core Content

This report explores the potential of Output-Based Aid (OBA) as a financing mechanism to support the development and operation of small-scale irrigation schemes in developing countries, particularly in Sub-Saharan Africa (SSA) and South Asia. It evaluates the scope of OBA, identifies project opportunities, and proposes recommendations for its effective application in the irrigation sector.

Main Objectives

1. Evaluate the scope for OBA in financing small-scale irrigation schemes to support poor farmers.
2. Propose project designs and implementation arrangements based on real-world examples to ensure the sustainability of irrigation schemes under OBA support.
3. Provide recommendations for the Global Partnership on Output-Based Aid (GPOBA) on the appropriate use of OBA subsidies in the irrigation sector.

Key Findings

Scope for OBA in Irrigation Schemes

• OBA can play a significant role in addressing financing gaps in small-scale irrigation, especially in SSA and South Asia.
• Technical assistance programs are crucial for building demand among smallholder farmers, as they often struggle to pay for irrigation services.
• Market access is a key factor in the sustainability of OBA projects. Projects targeting farmers in areas with better market access are more viable than those in isolated regions.
• Political commitment from host country or state governments is essential, particularly in India.
• There are risks associated with linking subsidies to farm productivity, as the private sector may not be willing to take on such risks.

Project Opportunities for OBA Support

Small-Scale Project Opportunities

1. Market-based approaches

   • Organizations like IDEI and Kickstart use grant funds to extend micro-irrigation technologies.
   • These approaches focus on product development, supply chain development, and training/technical assistance.
   • OBA role: Cover market development costs to ensure affordability.
   • Key risks: Limited capacity of organizations to pre-finance investments.
   • Indicative outputs:
     • Cost per farmer: $75 - $125
     • Income increase: Up to $400 per annum

2. Rainwater harvesting tanks

   • Smallholder farmers are supported to build tanks for water storage.
   • Tanks can supplement monsoon rainfall or support winter crops.
   • OBA role: Enable more farmers to invest in tanks by disbursing funds upon completion of civil works.
   • Key risks: Difficulty in building demand among poorer farmers.
   • Indicative outputs:
     • Cost per farmer: $890 (potentially lower with state contributions)
     • Income increase: $400 per annum

Larger-Scale Project Opportunities

1. Integrated Micro-Irrigation Projects (IMIP)

   • Private companies (e.g., Jain Irrigation) are contracted to rehabilitate irrigation infrastructure and provide micro-irrigation technologies.
   • OBA role: Provide capital subsidies to bridge funding gaps.
   • Key risks: Dependency on state government contributions.
   • Indicative outputs:
     • Cost per farmer: $825 - $1650
     • Income increase: Over $550 per annum

2. Commercial hub-outgrower projects

   • Large commercial farmers provide irrigation services to smallholders.
   • OBA role: Capital subsidies disbursed based on independent verification of service delivery.
   • Key risks: Sustainability of commercial farmers' financial incentives.
   • Indicative outputs:
     • Cost per farmer: $5,000 - $25,000
     • Income increase: Up to $1,350 per annum

Key Considerations for OBA Implementation

• Cost per beneficiary is a critical factor in determining the suitability of OBA.
• Verification mechanisms are necessary to ensure that funds are disbursed only after verified service delivery.
• Private sector involvement is essential, but risks must be managed carefully.
• Government support is needed for larger-scale projects, which may require longer implementation timelines than typical OBA-supported projects.

Recommendations

1. Focus on small-scale projects such as market-based micro-irrigation and rainwater harvesting as the most promising opportunities for OBA support.
2. Follow-up with institutions like IDEI and Kickstart to develop detailed project proposals and assess their capacity to pre-finance.
3. Explore ways to link subsidy disbursements to productivity improvements of farmers, ensuring that the private sector is incentivized to take on these risks.
4. Larger-scale projects require longer-term involvement from GPOBA, beyond the typical five-year timeframe.
5. Develop a financial appraisal tool (see Annex A) to evaluate the viability of OBA-supported irrigation projects.

Conclusion

The report highlights the potential of OBA to improve the access and affordability of irrigation services for smallholder farmers in developing countries. It emphasizes the need for effective project design, market development, and private sector engagement, while also acknowledging the challenges in ensuring sustainability and equitable resource management. The findings suggest that OBA is a viable mechanism for supporting irrigation development, particularly when applied to small-scale projects that are cost-effective and market-oriented.