BACKGROUND INFORMATION

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BACKGROUND INFORMATION

• Population 8.53 million (end 2006)
• Rural 49
• Urban 51
• Area 86,600 sq. km
• Climate
• Summer temperature 30 degrees C
• Winter temperature 4 degrees
• Rainfall 200 300 mm
• Evapotranspiration 5x effective rainfall

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Some Socio Economic Indicators
GDP per capita 2000 US 665 2003 US
900 2006 US 2,375
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Main Features on Irrigation

• AGRICULTURAL LAND
• Total agricultural land 4.72 million ha
• Pasture 2.92 million ha
• Cultivable land 1.8 million ha
• Area developed for irrigation 1.43 million ha
• By gravity 0.87 million ha
• By lift 0.56 million ha
• Actual irrigated area 1.10 million ha
• Irrigated area with drainage 0.65 million ha
• AVAILABLE WATER
• Renewable water supply 32.2 billion cubic m
• Overall storage capacity 22.6 billion cubic m
• Average annual water use 12 billion cubic m
• Agriculture 70 8.4 billion cubic m
• Irrigation water available per ha 5874 cubic m
  per ha

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Developments in Irrigation Sector

• Responsibility for management and OM of ID
  infrastructure from independent Irrigation
  Ministry to State Amelioration and Irrigation
  Committee (1993) (Since 2006 Amelioration and
  Irrigation Open Joint Stock Company)
• Management according administrative boundaries.
  About 60 rayon Agency offices.
• Abolition of state farms created a vacuum in
  management at tertiary. Since 2000 on-farm
  infrastructure transferred to AIOJSC.
• Insufficient funds for OM. In 2002 budget US
  36 million. Estimated required budget two times
  higher
• Introduction of Irrigation Service Fee in 1997,
  volume based. 0.12 to 0.60 US per 1000 cubic m,
  providing about 5 of the too low SAIC budget
• Formation of WUAs at tertiary level .

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WUA Development 1th stage Formation of informal
WUAs

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WUA Development 2nd stageFormation of legal WUAs
under some type of law

• WUA development in Azerbaijan started in 1997
• Until June 2004, when the amended Law on
  Amelioration and Irrigation was signed in by the
  President, Azerbaijan did not have an adequate
  and appropriate legal framework in place to
  establish WUAs.
• WUAs established till June 2004 are limited
  liability enterprises established in accordance
  with the Law on limited Enterprises and are from
  a legal perspective no associations at all.

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WUA Development 2nd stageFormation of legal WUAs
under some type of law

• Formation of 6 pilot WUAs (1000- 3900ha) under
  Farm Privatization Project (FPP) in 1997 with the
  assistance of IDA/IFAD funds
• Rehabilitation investment US 220- US 1.070 /ha
• Increased ISF collection and improved water
  distribution and higher yields
• Prepared standard model charter
• No distinction between governance and management
• However model not fully replicable. (Chairman and
  executive staff paid by project on declining
  basis)

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WUA Development 2nd stageFormation of legal WUAs
under some type of law

• Impressive campaign in 2000/2001more than 500
• Established according to procedures and documents
  developed under the FPP
• WUAs are allowed to collect 25 of the amount
  required to be paid to AIOJSC for their own OM
  costs
• Effective in ISF collection
• But not effective in informing general
  membership and merely seen as an organization to
  distribute water and collect ISF for AIOJSC.

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WUA Development Major lessons learned from 2nd
stage

• Major lessons learned from FPP and the campaign
  of 2000/2001 in order to establish sustainable
  WUAs successfully were
• A specific legal framework is needed
• Clear distinction between governance and
  management level to stimulate self management
  character of WUA and active membership
• Neither board members nor WUA staff should be
  paid from outside sources
• WUA concept needs broad promotion to get support
  from other governmental (municipalities, local
  administration, ministry of justice) and
  non-governmental (media) organizations.
• Newly established WUAs need training in fields
  like good governance, water distribution plans
  and financial management
• Newly established WUAs need support after
  training to strengthen knowledge learned during
  the training
• Newly established WUAs need access to credit to
  rehabilitate the deteriorated infrastructure on
  their territory

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Transition between 2nd and 3rd stage

• Based on the lessons learned the GOA took
  following action simultaneously
• January 2003 GOA established within AIOJSC
  Central Support Units in Baku and Nakhchivan and
  Rayon Support Units in 60 rayons.
• Development of appropriate legal framework
  started early 2003 and finished June 2004
• Preparation of Irrigation Distribution System
  and management Improvement Project (IDSMIP) with
  the technical and financial assistance of the WB
  to promote new WUA concept and to restructure the
  existing WUAs according to the amended law

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WUA Development 3rd stageRestructuring WUAs to
clearly separate governance and management
Amended Law on Amelioration and Irrigation

• The amended Law on Amelioration and irrigation
  provides a special chapter, consisting of 15
  articles, regulating the foundation,
  registration, organization and supervision of
  WUAs in Azerbaijan.
• In order to implement the amended Law, the CSU
  prepared
• Model WUA statutes (both for General Assembly and
  Representative Assembly
• Long-term (10 years) Water Supply Agreement
• Annual Water Supply Contract
• Long-term (20 years) System Transfer Agreement
  (usufruct)
• System Inventory Act

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WUA Development 3rd stageRestructuring WUAs to
clearly separate governance and management
Project to implement new WUA concept (IDSMIP)

• The development objective of the Irrigation
  Distribution System and Management Improvement
  Project is
• To improve the effectiveness and financial
  viability of irrigation water distribution and
  management on 56,000ha (project rayons)
• Through provision of support to WUAs and the
  AIOJSC
• Project period 2004-2009

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WUA Development 3rd stagePROJECT COMPONENTS
(IDSMIP)

• Development of WUAs (US 6.95 million)
• Irrigation and Drainage Infrastructure
  Rehabilitation (US 30.00 million)
• Project Management (US 2.15 million)

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WUA Development 3rd stageComponent 1
Development of WUA

• Activity 1 Development of capacity to train and
  strengthen WUAs
• Activity 2 WUA strengthening

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WUA Development 3rd stageActivity 1 Development
of capacity to train and strengthen WUAs

• Project assists development of institutional
  capacity of newly established SU by financing
• office and training equipment, vehicles, and
  incremental operational funds of the 2 CSUs and
  RSUs in 11 project rayons
• small allocation for office and equipment for
  other 48 RSUs
• TA to train the staff of the SUs to develop the
  capacity of the SUs to establish, train and
  support and strengthen WUAs

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WUA Development 3rd stageActivity 2 WUA
strengthening

• Awareness campaign to launch new WUA concept.
• Sensitizing water users by means of organizing
  awareness seminars
• Awareness meetings with national and local
  government and staff of relevant ministries
• Public information campaign
• After initial awareness campaign formal training
  and active guidance by RSU staff.
• WUAs selected for rehabilitation will receive
  limited amount of equipment related to OM tasks
  of the WUA

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WUA Development 3rd stagePresent State of
Affairs capacity building

• Training of staff of Support Units
• Together with the CSU staff the TA team prepared
  training material on the following main subjects
• WUA formation procedures
• Training skills
• Administration
• Financial management
• Annual operation plan
• Annual maintenance plan
• Together with CSU staff TA team trained RSU staff
  in 12 project rayons in above mentioned subjects.
  Finished by the end of 2006
• The close cooperation between CSU staff and TA
  team established the required capacity within the
  AIOJSC organization to train RSU staff in non
  project rayons. This training in non-project
  rayons is still going on.

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WUA Development 3rd stagePresent State of
Affairs WUA restructuring

• Awareness campaign to launch new WUA concept
• RSU staff organized together with four
  Mobilization Specialists (local consultants)
  numerous awareness meetings
• CSU staff organized in each rayon awareness
  meetings with representatives of local government
  and municipalities
• CSU with support of the PIU conducted public
  information campaign
• 4 brochures, 5 posters
• From Nov. 2005 onwards 30 minutes/quarter radio
  broadcasting
• Since beginning of 2007 quarterly newsletter on
  WUA news
• Numerous articles in newspapers (at least 3 per
  quarter)
• Recently the preparation of video clips started
• Number of restructured WUAs
• 186 of the 197 planned WUAs in the project rayons
• Average size WUA 2,049ha
• Average plot size farmer 2 ha
• 220 of the 400 in the non project rayons

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WUA Development 3rd stagePresent State of
Affairs WUA strengthening

• Strengthening of WUAs consists mainly of training
  WUAs on financial management and drafting annual
  operation and maintenance plan
• RSUs in project rayons started training WUAs from
  January 2007 onwards
• In 12 project rayons 679 training sessions were
  held
• Initial evaluation of the WUA training program
  shows that RSU staff is able to apply the skills
  and knowledge they learned during their training
• Level of WUA board members and executive staff is
  rather diversified, which asks for intensive
  guidance of WUAs after training them

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WUA Development 3rd stagePresent State of
Affairs WUA strengthening

• Besides training of WUAs in a selected number of
  WUAs rehabilitation works of the ID
  infrastructure is going on
• In four WUAs rehabilitation works are under
  construction
• For four WUAs evaluation of tenders are carried
  out
• For four WUAs designs have been prepared

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WUA Development 4th stageWUA federation

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