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Presentation on risk of private investment at Kbal

Por pumping station,Takeo province

Prepared by: Tang Sophat and Sok TouchLocal private investor, Doun Keo District, Takeo province

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A. Location and Some figures

Project namePrivate investment at Kbal Por pumping station

Commune, District, Province Sombour, Traing, Takeo

FWUC nameFarmer Water User Community at Kbal Por pump station

Project implementationIn 2003, but have not been recognized by MORAM

Scheme typePumping station (Early wet season, assist late wet season rice, additional crops, duck raising and fish pond…..

Water sourceKbal Por small river: 25 meters width and average depth in dry season is 3 meters (connect to Vietnam)

Irrigated area (2003-2004)

– Early wet season 500/1764 ha– Assist late wet season 400/1764 ha

Involved village in the scheme 6/10 villages

Total family 1800/2132 families

Average yield 3.5-5 T/ha

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Kbal Por pumping

station scheme map

List of materials

Quantity

Russian machine 250 Horse Powers

02

Russian machine 180 Horse Powers

02

Concrete canal 02 (200m)

Canal (without concrete)

06 (12000m)

Total land areas in the scheme

4759 ha

Pumping Station

bwg

bwg

Prek kbal Po ;Connect o VN

Main canal

East

canal FWUC

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B. Station history

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C. Implementation of Pump station ( 2003-2007)

I. Basic judicial Farmers proposed business persons to rehabilitate and re-implemented the station through Sambour commune chief and Traing District governor:

Proposed letter for conducting business issued 25 July 2002( Approved by district and commune authority).

Additional diary on proposed letter issued 21 October 2002 ( Approved by commune authority and Provincial agriculture department representative).

Draft constitution of FWUC and planning activities on 2003-2011.

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1. Repaired the station+ Canal system: Total investment 72 600 USD

II. Pump station process

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2. Organization of FWUC’s structure: collaboration model between private and public

Organized constitutional document Not approved as formal document yet.

Prepared planning activities: Cultivated plan+ Set water turn( Proposition for seasonal water supply).

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Registration of member and propose for water(25% prepaid).

Prepared a list for ISF collection + Bill.

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3. Water supply and sharing

Water supply and sharing implement by business persons( 4 staffs) responsible for station management. Whereas each village representatives follow up water

circulation along the canal. Contract for providing water between business person and

farmers ( Represented by water supply president and each village

representative). Water providing was conducted according to 3 days water

turn ( 3 water turns/6 villages). Farmers have to make proposal for water to business person through each village representatives before cultivated season.

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4. ISF collection

Service typePrice/ha(Riels)

Contract 2003 Real practice

Early wet season (Irrigate from tilth to

harvest May-August).

150 000 30 0000

Assist late wet season rice August-December.

110 000 150 000

Investment= ??Implementation= ??FWUC= ??

Village representative directly collect ISF from farmers and transfers 100% of the fee to business person( They will receive 10000 Riels per ha+ incentive).

ISF ( set annually by discussing with community representative 1 person/ village, commune council, village chief, Provincial agriculture department representative, and according to field visit to others scheme along with fuel market price.

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5. Financial management

Income in 2003-2004

0

2000

4000

6000

8000

10000

12000

14000

16000

1 22003 2004

$

Cash to collect

Cash collected

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0

2000

4000

6000

8000

10000

12000

14000

1 22003 2004

($)

Annual processing expenditure- Early wet season

Income-expenditure comparison - 2002-2003.

Incomes

Processing expenditure

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III. Potential and involved institutions

1. Potential of location (Station and irrigated area)

Location, water source, and canal system favor for irrigation.

Good soil fertility The pump station is the most significant requirement

for the farmers in the command area. Increase the times of cultivation- 2 or 3 times per year.Good facilitation for transportation both in land and

waterway. Easy access for product market( Vietnam and Central

province).

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2. Business person’s Strength and Threat

Strengths

Own methodology, materials, technical and enough capital for investment. The farmer realized the disadvantages when the station was not worked (Many previous experiences). Good participation from farmers (labor and concession-

land for canal construction). Appeal to many donors, national and international

organizations.

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Threats

There is no encouragement and guarantee for private investment on irrigation field which need for any supports from local institutions and political policy ensured from ministry and government level.

There is no institution/coordinator ( conflict between business person and farmers).

There is no formal contract. Informal FWUC and management structure is not clear. For ISF collection ( no rule for the farmers who are not

willing to pay the ISF). Water sharing (Unrespect water turn, stealing water,

and waste water). Some time (lack of water source, the station got

flooded).

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3. Local authority’s support

Local authority intent to see the processing of the pump station But…….

Not enough participation (implementation of the contract, strengthening the constitution...Etc.

There is no formal contract which was approved by province, ministry, and government level.

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4. MoWRAM and PDoWRAM’s support

MoWRAM and PDoWRAM encouraged private investors to contribute in irrigation development. But……

Lack of rule and procedure for private investment on irrigation.

Less support from MoWRAM and PDoWRAM to motivate and encourage the private investors.

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5. Conclusion

Agreement

Renew Contract

Water user

¼FWUC

District authority/Province

Business person

Local authority/commune

Rule and Regulation

Modernization/ renewal of the contract should be held annually:

Set the ISF Enforce FWUC constitutions

O & M should be clarified

Clarify the level of service which was received by investor (Maintenance- repair, water sharing).

Clarify about the level of norm for infrastructure maintenance.

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Should develop the rules for investors and provincial authority to:

Check whether or not the investors comply with public advantages.

Make transparency financial management. Check and make qualitative manner of O&M which

was provided by investors. Check on irrigation scheme extension project if it

possible to do. Provide security for the investors to gain the benefit

according to the investment (During the agreement).

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5. Proposition

1. The government should develop the rules and procedure relating to private investment on irrigation field.

2. The government, Involved expert departments, and all ranks of local authority should provide strong support for private field in investment on irrigation.

3. Both signers should follow and comply with the contract.

4. Please all the donors, national and international organizations provide strong support for private field with additional ideas and technics.

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6. Additional ideas/Recommendation

ISC could play a role as coordinators between investors and FWUC/Local authority.

Should have separated leading structure between investors and FWUC.

Transparency of budget management and quality of maintenance.