FEA for buried pipe irrigation scheme

IAPP-TA deployed a Project Evaluation Mission on the investment in installation of buried pipe networkscomprising two overseas Economists and one national irrigation engineerfrom November 09 to until 20 November 2013. Under component three, IAPP supports investmentsto enhance water conveyance efficiency through the installation of buried pipe network connections to LLPs and deep tube wells (DTWs) in existing irrigation schemes. Feasibility assessment of such strategic investment became mandatory regards both the farmers / water users group who will use and maintain these investment and the country which is investing in them.
The analysis results show that the investments in buried pipes networks are financially and economically sound and reveal clear incentives for farmers to participate and solid financial sustainability of the irrigation schemes.The increase in net benefits is easier to model and more outstanding for newly irrigated areas than for the areas within the irrigation scheme that already benefited from irrigation previously to the Project. Despite leaving little doubts about the financial and economic soundness of the investments in buried pipes networks, this cost-benefit analysis would require more representative and significant data in order to achieve more accurate results.
However, the analysis indicates that there is a risk that the intervention will aggravate the already existing gaps in social and economic status within the members of each water users group and calls for improved transparency in the income and expenditure accounts of the water users groups. Although the results of this analysis are convincing, future financial and economic analyses of this investment would benefit from improvements in the representativeness and significance of the available data.
Related Documentation:
FEA Report