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The Public Private Partnership:
An innovative solution for the development of irrigation infrastructure projects
Case of Guerdane Project
A project for the preservation of the Agriculture and
Environment
SOUTH-‐SOUTH KNOWLEDGE EXCHANGE WORKSHOP ON
"PUBLIC PRIVATE PARTNERSHIP TO PROMOTE AGRICULTURE SECTOR"
Khartoum, Sudan18 -‐ 20 February 2017
Presented by: OUDRHIRI Salma
Rural Engineer, in charge of monitoring and regulation of PPP in irrigation,
DIAEA/Ministry of Agriculture and Fisheries
Delegation of the management of irrigation water service
• Construction, management and operation of irrigation infrastructures by the operator;• Share of investment financing construction and modernization between the government,
the operator and users ;
• The irrigation infrastructure remains public property;• Management of risks by the operator (technical risks, financial, commercial, etc.) ;• Sharing certain risks, particularly the ones which are related to the demand and supply of
water ;• Remuneration of the operator by users.
Principle
Purposes
Delegationof public service
• Ensure the sustainability of constructions• Better water and energy efficiency• Optimization of operation and maintenance
• Improving water service• Improving the efficiency of financial water service• Reduction of budget transfers
Equity
Efficiency Durability
Institutional reform of irrigation: PPP
Approach followed for the implementation of PPP projects
CONSISTENCY AND STAGES OF STRUCTURING STUDIES FOR DELEGATED WATER SERVICE MANAGEMENT OF IRRIGATION
§ Targeted Diagnosis (Legal Analysis, Diagnosis, Water Demand, Investment Requirements);
§ Strategy for public-‐private partnership;
§ Sensitization of farmers;§ Surveys of private operators; Validation seminar.
Phase 1: Feasibility studies Phase 2: Execution of call for tenders
§S / Phase 1: Promotion and pre-‐selection; §S / Phase 2: Invitation to tender; §S / Phase 3: Judgment and selection of partner.
Consistency of Irrigation PPP program
Dar Khrofa Perimeter DevelopmentProject
Superficie: 21 000 haCost : 2,8 MMDH
Project to safeguard the irrigated plain of Saiss
Superficie: 30 000 haCost : 4 MMDH
Project for the development of first part of extension of the Gharb plain
Superficie: 42 800 haCost : 6 MMDH
Azemmour-‐Bir Jdid Coastal Zone Development Project
Superficie: 3200 haCost: 265 MDH
Development project downstream of the Kadoussa dam
Superficie: 5442 haCost: 600 MDH
Project to safeguard the citrus farming area of El Guerdane
Superficie: 10 000 haCost : 987 MDHDesalination Irrigation Project in
the Dakhla Area
Superficie: 5 000 haCost : 1,3 MMDH Finalised projects
Priority projects to achieve in the short term
Priority projects to achieve in the average term
Chtouka Ait Bahadesalination project for Irrigation
Superficie: 15 000 haCost : 2,5 MMDH
Focus -‐ PPP EL Guerdane : A saving project
Geographic location
The Sebt EL Guerdane irrigation project is located in the Taroudant Province, about sixty kilometers east of the City of Agadir, under the Souss-‐Massa Draa
Region Administration-‐ Kingdom of Morocco
Stumping citrus trees
Characteristics and location of the perimeter:• Located south-‐west of Morocco in the Souss valley and about 60
km from Agadir
• Area: 10,000 hectares cultivated citrus plants
• Number of farmers: about 670
• Irrigation water comes from Souss groundwater (private wells)
Findings/problems to solve: Before resource
• Farmers abandoned their citrus groves
• Underground water level very deep (> 200m)
• Overexploitation of groundwater piezometric level decrease from 2 to 3 m per year
• Underground water level very deep (> 200m)
• High pumping costs
How to safeguard the Guerdane perimeter : Project Components
• 45 million m3 of water resources from the complex of Aoulouz-‐Mohammed al-‐Mokhtar Soussi dam to supply 10,000 hectares of citrus plants.
o Adductor of 90 km;o Distribution network serving 300
km;o Irrigation terminals (approximately
600 terminals).• Irrigation system to the plot: exclusively
drip irrigation.• Cost: 987MDH
Added-‐value effectiveness and cost
Project Components
• Save 76 million m3 of ground water per year,• Reduce pumping costs by 50%,• Ensure use of drip irrigation on 10,000
hectares.• Increase in production of citrus fruits by 22%,• 35%, increase of citrus exports,• Ensured continuity of 11,000 jobs.• The project also allows to take advantage of
the private sector expertise and itscontribution to infrastructure funding, in asector that has always been managed by theState
The PPP project involves several actors: MAPM which is the delegating authority, users, thebasin agency and the private partner represented by Amensous.
Project partners
Financial and institutionalstructure• Project cost estimated at 987 million dirhams.• The government contribution amount: 475 million dirhams (Fund for Economic and Social Development Hassan II).
o A grant of 237.5 million dirhams;o A concessional loan of 237.5 million dirhams (interest rate of 1%, grace period of 20 years).
• Farm owners wanting to connect 8,000 dh / ha or up to 80 million according dh membership.• Co-‐financing delegate estimated at 432 million dirhams, or 43% of the overall cost of Project.
• Currently, the realization by the operator of hydro-‐agricultural project wascompleted in July 2009 and the water network performed (work havingstarted in April 2007).
• The project was inaugurated by His Majesty King Mohammed VI dated 02October 2009.
• The project is now completed and operational since that date
State of progress
Inauguration by HisMajesty King Mohammed VI: October 2, 2009
• The Directorate of Irrigation and Development of Agricultural Land isresponsible for the monitoring of this project with the support of the RegionalOffice of Agricultural Development of the Souss-‐Massa (ORMVA-‐MS).
• A set of monitoring indicators has been defined in line with the projectspecifications and delegated management responsibility including all projectaspects: the construction of irrigation infrastructure, the provision and pricingof water, management of water services (operation, maintenance, costrecovery), the relationship of the operator and users, etc.
Control and Monitoring
Performances/ Indicators
Evolution of the rate of water service
Taken the volumes and distributed
Billing and collection
Users and connecting Reclamations Service cessation
2014-‐2015
Today, the operation of the project reported good performances in distribution,maintenance and recovery. Indeed, all operating indicators continue theirincreasing trend and some even reached record levels, especially collected anddistributed water volumes to users.
Conclusion: What are the potential benefits of a public-‐private partnership?
• Improve the quality of service by allowing both sectors to do what they dobest.
• Government acts as the regulator and focuses on planning services andmonitoring performance.
• The private sector focuses on managing the day-‐to-‐day delivery of the service.The performance incentives and penalties typically included in a PPP contractstimulate innovation.
• Improve cost-‐effectiveness by taking advantage of private sector innovation,experience and flexibility.
• PPPs can often deliver more cost-‐effective services than traditionalapproaches. The savings that accrue can finance other services.
• Increase investment without raising public debt. PPPs can reducegovernments’ capital costs and help to bridge the gap between infrastructureand service needs and governments’ financial capacity.
• The private sector can often earn extra revenues from third parties, therebyreducing the cost to the public sector.
• Better allocation of risk, as a core principle of PPP is to allocate risk to theparty best able to manage it at lowest cost.
