Water Users Cooperatives in Kazakhstan Republic of Kazakhstan: Greetings to the workshop organizers and participants!

Republic of Kazakhstan Total in the country: 8- native zones 14-oblasts Слайд 8

Economic and social significance of irrigated lands 1.а) Gross production of irrigated lands from 1 ha – up to USD $1500 б) Gross production of non-irrigated lands from 1 ha – up to USD $250 б) Gross production of non-irrigated lands from 1 ha – up to USD $ а) Employment on irrigated lands – up to 300 people per 1000 ha б) Employment on non-irrigated lands – up to 50 people per 1000 ha б) Employment on non-irrigated lands – up to 50 people per 1000 ha

Availability and utilizing of irrigated lands in the country in the breakdown of Oblast Irrigated land as of , 000’ ha Utilizing of irrigated lands, 000’ ha, Akmolin46,503,552,501,162,171,651,001,00 Aktyubinsk48,808,578,678,839,104,279,289,50 Almaty635,70452,80472,90471,90522,40515,50512,40512,40 Atyrau4,603,402,950,002,723,763,873,90 E. Kazakhstan 219,1025,8130,4555,6063,1956,2059,5659,56 Jambyl143,94118,95142,02118,23117,03115,57137,45165,02 W. Kazakhstan 11,108,818,5011,1012,025,862,182,18 Karaganda87,7065,2050,4540,901,6658,5053,8453,84 Kyzyk-Orda277,68152,34141,00139,80152,73145,44149,45149,45 Kostanay145,904,302,561,991,021,583,783,80 Mangystau1,300,740,000,000,000,000,000,00 Pavlodar12,904,805,246,4010,3010,437,307,30 N. Kazakhstan 17,703,631,530,480,340,210,280,28 S. Kazakhstan 500,35404,27440,17452,16455,65464,73458,09458,09 TOTAL2153,271257,171308,941308,551350,331383,701398,481426,32

Reasons of irrigated lands deterioration and reduction Reasons of irrigated lands deterioration and reduction may be divided into 3 groups: а) economic (lack of circulating assets in farms), а) economic (lack of circulating assets in farms), b) organizational (collapse of large farms required new market methods of organization) c) technical (deterioration of equipment, structures, etc.). Under this workshop we will consider organizational reasons of irrigated lands deterioration and reduction.

General chart of land using and on-farm irrigation system of large farm (kolkhoz, sovkhoz, etc.) On-farm canal Off-farm canal Collector 2500 ha Brigade method of land use On-farm maintenance of on-farm irrigation and drainage canals – On-farm Maintenance Service On-farm water use plan

After reforming: general chart of land use and off-farm irrigation system of two and more farms, create don the basis of large farm (kolkhoz, sovkhoz, etc.) On-farm canal Off-farm canal RGP (KGP) Collector Farm ТОО? Farm

Main reasons of need in creating consumer cooperatives: During reforming on the basis of former large farms (kolkhozes, sovkhozes, etc) there appeared from 2 to 50 new farms, as a result:  Market form of agricultural land use was achieved.  At the same time our farmers were not ready to market form of integration, and this cause the following problems: 1.former on-farm irrigation canals had no owner, were not maintained and operated, and this led to deterioration and decrease of efficiency of irrigation systems; 2.problems appeared in making agreements with РГП (КГП) and energy supplies; 3.Water use became unsystematic, namely: breach of queue, disputes and conflicts, slower irrigation, irrational discharge of water; 4. Due to separation of new small farms it had become impossible to organize repair or reconstruction of irrigation and drainage systems.

Stoppage of maintenance leads to quick deterioration of irrigation and drainage systems Damage of canals and their reinforcements Breakage of СВД

Due to the breakage of irrigational and drainage systems irrigated lands become worse Untimely irrigation Secondary salinization

Measures taken by the Government to rehabilitate and improvement of Irrigation and Drainage systems  Ministry of Agriculture of Kazakhstan and Water Resources Committee since 1995 has been taking measures on keeping irrigated lands:  1. Implementation of (since 1996) of Irrigation and Drainage Systems Improvement Project, phase -1, with the help of IBRD loan (IDSIP-1).  In this project, the main issue was to create consumer cooperatives (CCs). For this there were conducted meetings and workshops with farmers, to support in establishing CCs.  Total under IDSIP-1 15 CCs were established.  They’ve become examples and samples of market method for integration for organizing maintenance of on-farm and off-farm irrigation and drainage systems.

INFORMATION ON AVAILABILITY OF RURAL CONSUMER COOPERATIVES OF WATER USERS Oblast Number of established CCs Used irrigated area in oblasts, 000’ ha Irrigated area served by CCs, 000’ ha % of irrigated lands covered by CCs Almaty Eastern Kazakhstan Jambyl Western Kazakhstan Karaganda15412 Kostanay150,12 Kyzylorda Pavlodar29555 Southern Kazakhstan TOTAL

History of CCs establishment and development in Kazakhstan History of CCs establishment in Kazakhstan TACIS Project ( ) Support of farms in Almaty oblast First data workshops on WUAs, Statute development and passing it to the Water Resources Committee USAID Project ( ) Workshops on topics concerning Propaganda of participation in preparation of Draft Law on CCs Irrigation and Drainage Systems Improvement Project (IDSIP-1, IBRD) ( ) 1.Participation in preparation of Draft Law on CCs. 2.Establishing of 15 CCs. 3. Propaganda and experience. 4.Training film. Statutes on CCs and Methodological materials are spread to all regions TACIS Project on Ministry of Agriculture support in CCS ( ) Training and Consultancy Centre on CCs are established in 5 oblasts IDSIP-2 On ha ( ) One of the Project Components is CCs support

Legal bases of Consumer Cooperatives Civil Code of the Republic of Kazakhstan Water Code of the Republic of Kazakhstan Land Code of the Republic of Kazakhstan Law on Rural Consumer Cooperatives of the Republic of Kazakhstan of Law on CCs of the Republic of Kazakhstan of

Main functions of Consumer Cooperatives Main functions of CCs Owner of off-farm Irrigation and Drainage systems and their maintenance Making Agreements with Water and energy suppliers Organization of water use on the basis of plan and agreements with farms Organization (customer) of reconstruction of irrigation and drainage systems Provision of credit repayment from the farms’ payments

Multilateral links of CCs – in favor of farms-water users and off-farm irrigation and drainage systems CCs Republic State Enterprise (Municipal state enterp.) -irrigating water Basin Water Resources Department- (allowance,limits) Ministry of Finance, Ministry of Agriculture Banks Maintenance constructors Research instituteEnergy Farm ТОО Farm IBRD

General information on activities of CCs in the Republic of Kazakhstan General information on CCs Owner of off-farm irrigation and drainage systems Receipt of registration certificate and registration in ЦН Customer of repair and reconstruction Of off-farm irrigation and drainage systems Organization of water use and maintenance works Agreements with energy supplier Agreements with water supplier Agreements with water users Agreements with creditors Agreements with contractors Provision of repair and reconstruction credit repayment Law on Consumer Cooperatives of Law on Rural Water Consumer Cooperatives of Founders: farms-water users Current CCs management: Board of Directors and Chairman Accounting and maintenance service

Organizational structure of CCs CC Accountant’s office Maintenance service Machinery Top management: Founders - Farms- water users Directory And directory chairman Executive Director Audit Committee Payers: Farms-water users

Measures on state support of CCs in Republic of Kazakhstan State Programs Unit Plan “Funding water delivery costs to agricultural manufacturers" 000’ Kazakh tenge 285,53553,88789,27683,33731,17775,04 IDSIPha IDSIP-1 Since 1996 to 2004 To ha WMIP since 1999 to 2006 to ha Since 2008 IDSIP-2 to ha

CCs establishment allowed: а) using local possibilities b) implementing IDSIP and WMIP c) funding maintenance costs as a result, irrigation and drainage systems are improved (see photos):

CCs have become market infrastructure and organizational and legal basis for investments to irrigation and drainage systems Project lands of IDSIP-1: CCs established irrigation and drainage systems improved

Main indicators of CCs establishment efficiency: CCs have been established on area of 629,700 ha or 45% of used irrigated lands. Efficiency of CCs establishment can be assessed by the following indicators:  CCs improved maintenance works, as a result efficiency of systems increased to 24% or assessing total irrigation area of the country to 7%.  CCs met creditors’ conditions and organized reconstruction and improvement of irrigation systems maintenance on total area of ha, as a result efficiency of systems increased to 40%, and assessing total irrigation area of the country to 9%.  Implementation of IDSIP-2 in : with the help of CCs and reconstruction provide increase of irrigation systems on total area of ha on 40% or assessing total irrigation area of the country to 15%.

Chart of self-organization and mutual assistance (effective circulation of “market integration” of water users) CCs support irrigation and drainage systems Reliable irrigation and drainage systems are the basis for effective farmers Farmers create and support CCs

CCs become an important infrastructure element of water use organization in Kazakhstan РГП

Participation of CCs in the structure of Water Resources Management in Kazakhstan

CONCLUSION Collapse of large farms to smaller ones may be considered as the first stage of market reform, and establishment and development of CCs is its integration stage. Without CCs it impossible to invest funds to keep irrigation and drainage systems. Deterioration of irrigation and drainage systems leads to deterioration of irrigated lands, that is brings worsening of social, economic and ecologic situation. As a result: The issues considered in this workshop on improvement of organizational and legal bases and activities of water users cooperatives (in Kazakhstan – Rural consumers cooperatives of water users - CCs) have significant meaning in safety and effective development current up to 50% of irrigated lands of Kazakhstan. This is due to the following facts: CC is a organizational and legal basis for providing safety and efficiency of irrigation and drainage systems: А) for farmers by means of joint maintenance and self-financing; Б) for the Government on market basis to implement projects and programs to support irrigation and drainage systems (reconstruction, financing current costs). It is important to take into account the following: Measures on establishing and developing CCs will not be efficient, if they will be not understood and supported by leaders and specialists, and civil servants and local population. Accordingly, irrigation and drainage projects should include training-information and institutional components. The main objective of this component should be formation among farmers and civil servants understanding of CCs role in providing safety and efficiency of irrigated lands under market conditions.