African Water Development Report 2006 - United Nations Economic ...

African Water Development Report 2006Efficient Utilisation of Water ResourcesThe two case studies presented below show thecause and effect relation between water tariff adjustmentand more efficient use of water:The Case of sub-sector A of Rmel inLoukkos area:This is a sub-sector of an area of about 1,500 ha,irrigated by sprinklers and subjected to a restructuringaimed at individualizing water intakes andmeters under the Project. As part of the reorganization,the Sector A estates were regroupedand arranged in belts parallel to secondary pipesallowing each farmer to have his own individualintake and meter, the combined results of increasedwater tariffs and individualization of watermeters have a considerable impact on the behaviourof farmers towards irrigation water. The21 per cent increase in tariffs that followed led toa 5 per cent drop in water consumption and a 38per cent increase in farming intensity. The resultwas a 32 per cent increase in water saving whichenabled the farmer to enhance farming intensityand, consequently, his income.The Case of Souss Amont area:In this plot of an area of about 6,100 ha irrigatedby sprinklers, the scarcity of water combinedwith the increase of irrigation water tariffsled farmers to resort to water-saving irrigationtechniques, particularly through drip irrigationby parcel. Thus, with the implementation of thetariff adjustment plan, a considerable increaseof areas equipped with drip irrigation has beennoted, as shown in table 12.2.In the two pilot cases presented above, irrigationwater tariffs were accompanied by rehabilitationand modernization of equipment owned by thefarmer, especially for proximity services (terminalsand meters) which helped to substantiallyenhance water supply. The projects also showthat irrigation water valuation induces a behaviourof economy towards water, and has the positiveimpact of enhancing efficient use of water,especially when it is accompanied with measuresaimed at improving water supply and measurement.Pricing of WaterTo treat water as an economic good does not necessarilylower its social or ecological importance.It rather complements the social and environmentalperspectives. Price signals have successfullyhelped to achieve social and economic equilibriumfor most goods. However, in the case ofwater resources, this is not the case because wateris perceived as too vital and basic a commodity tobe left to market forces and, also, because there isno conventional market for water. In Algeria forexample, until the mid-1980s, the cost of drinkingwater for users was well below the cost of supply.However, after 1984, the tariff was redesigned toTable 12.2: Development of areas equipped with drip irrigation, and irrigation watertariffs in the area of Souss AmontArea equipped with drip irrigationWater tariffsArea (ha) Rate of increase per year (%) Tariff (DH/ m 3 ) Rate of increase per year (%)1996 153 - 0.38 -1997 183 20 0.42 101998 306 67 0.46 91999 428 40 0.46 -2000 612 43 0.49 62001 735 20 0.54 102002 857 16 0.54 -284