Economic and financial aspects of multiple uses system Mary Renwick Multiple Uses Discussion Forum.

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Presentation transcript:

Economic and financial aspects of multiple uses system Mary Renwick Multiple Uses Discussion Forum

Economic values and decision making Water DomesticIrrigationLivestockFisheriesEnterprises Home Gardens Drinking $

Valuing Multiple Uses of Irrigation Water: Sri Lanka Uda Walawe Background Poor Performance Valuation work Univ. of Minnesota & IWMI

Results Irrigated Crops $25m/yr Paddy $8.1 m OFCs $3.5 m Bananas $13.5 m Home Gardens $8m Home $2.03m Marketed $5.97m[insert pic]

Results Domestic Use $140,000/yr Fisheries$743,000/yr Home $64,000 Marketed$679,000 –Fishers$390,000 –Sellers$289,000

Value in Alternative Uses Type of UseValue US$ m healthnutritiongender Irrigated crops 24.9 ? Home gardens 8.0 Drinking0.1 Fisheries0.7 ? Total33.8 Banana OFCs Rice

Market-led Approach to MUS: SIMI* Background Micro-scale MUS Market-led approach

MUS Development Domestic & Irrigation –Surplus water for irrigation 28 community systems 1,000 households Cost –$100 (tap) –$10-$35 (irrigation equip) Benefit –Income >$200/yr –Health & nutrition MUS with dual tap for drip irrigation and domestic use. Low cost water storage tank for an MUS scheme.

How it Works … The Value Chain Input Supplier Producer Output Markets

Supply-chain development: A key supporting investment for MUS Appropriate inputs for agriculture, drinking water (and sanitation) Embedded services Results: 240 agrovets 5 tap/micro irrigation manufactures 2 drip assemblers 133 micro-irrigation dealers 7 extension services (7 districts) Sales of 26,230 micro-irrigation systems Note: Only 1,280 purchased via micro-credit

Producer Build capacity of early adopters Facilitating access to inputs and credit Education Results: 31,000 households (200,000 people) in 1500 farmer groups $7.3 million in increased incomes (BCA 3:1) Year 1: $100/hh for 16,000 households Year 2: $195/hh for 26,000 households

Market development: Critical for economic opportunities linked to MUS Results: 43 market collection centers Established value chains across 9 districts serving 3 million

Government: key role Strategic investments Focus on market failures

Conclusions Economic valuation of alternative uses can serve as a decision making tool Opportunity cost of non-integrated management can be high Linking value chain approach to MUS can increase economic returns and reduce subsidies

Questions?