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

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increase cost recovery for water systems. In termsof irrigation prices, the fixed charge (per litre persecond per hectare) decreased from $US 3040 in1985, to $US 48 in 1995. In terms of volumetriccharges, it remained the same, at $US 0.02-0.03in 1995. In Botswana, in 1994/1995, 44 per centof the total operational and maintenance costs ofwater supply were recovered, compared to 33 percent recovery in 1988/1989. These examples helpto show that in the absence of working marketsfor water and in the presence of growing conflictsover water use, there is a pressing need tounderstand the underlying economics of waterdemand and value in various economic sectors,especially in the context of Africa (BorgoyaryM., 2002).In Africa, where access to safe drinking water isstill low, especially in the rural areas, the questionof water being an economic good is topicalsince it involves the relevant issue of abilityand willingness to pay. However, since the 1990s,it has become obvious that it will be difficult tomobilize the financial, engineering and physicalresources required to supply clean water to thosewithout it if water is not used more efficientlyand if national water priorities and policies arenot rethought Jack Moss el al, (2003). Moreover,there is an urgent need to update distributionsystems in order to retrieve much needed waterfrom the very high level of unaccounted-for-water.All such actions require large sums of moneywhich are not readily available in many Africancountries. The potential benefit of the principle ofeconomic good is that increasing economic efficiencymeans increasing the size of the economic“pie” ( Jack Moss el al, 2003). That being the case,many countries now recognize water pricing as astrategy for releasing capital for investment andreducing waste (Box 12.2).In Libya, water is provided almost free of chargedue to the fact that municipalities are unable tosupply water of acceptable quality and pressure.By Law, however, municipal water is meteredand charged using a rising tariff block system.The tariff is not intended to recover the investmentcost for the water supply system, but ratherto minimize wastage and partly compensate forthe operation and maintenance costs. A new tariffsystem has recently been introduced, based onO&M cost recovery and for agricultural, industrialand municipal water uses. The billing systemis still irregular and sometimes non-existent,which implies that water will continue to be afree commodity provided by the State for someyears to come. No charges are imposed on irrigationwater, as water is extracted through privatelyconstructed wells. At present, farmers only payfor the cost of energy used for the productionof water, which is also subsidized (AWDR NationalReport, 2005).In the Sudan, raw water is treated as a substanceand a free commodity. Water pricing is thereforebased on the cost of services to reach the users.These services are estimated using many variablessuch as: availability, transferability, quantity andquality. In large-scale irrigated schemes managedby the public sector, water rates are based on costrecovery. The private sector uses the water sourcefree and the operation and maintenance costsare covered by individuals or cooperatives. Waterprices for irrigation, for example, are basedon cultivated area and not on actual quantity ofwater used which depends on type of crop. Onehectare of cotton costs more than one hectare ofgroundnut or sorghum (almost twice), as per thelength of growing season which consequentlydetermines the number of watering. In 2003,the cost of irrigating one hectare of cotton wasabout US$50, while for sorghum, it was US$.25It is worth mentioning that these costs coverthe irrigation services from source to farm level.The domestic water supply rates vary widely betweenurban and rural areas. Urban localities arecategorized as first class, second class and thirdclass. Water rates are based on a flat rate systemin each category. For example, in Khartoum thedrinking water supply rates for the first class areasare about US$ 16 per month and the thirdclass areas about US$ 8. These water rates are setto cover operation, maintenance and the systemupkeep. In the rural areas domestic water sup-VALUING WATER285
African Water Development Report 2006Box 12.2: Cost Recovery for Irrigated Agriculture - Egyptian ExperienceThe objective of the Valuation of water for irrigation in Egypt is to recover from beneficiaries the financial cost ofproviding water-related services, encourage efficient use of water resources and provide water services at a reasonablecost.Areas of Application of Cost Recovery• Irrigation Improvement cost recovery .• Subsurface Drainage cost recovery.• Cost Recovery in the new lands.• Cost Recovery for operation and maintenance.• Cost Recovery on new projects.Mesqa improving costs consist of:• Investment costs for the mesqa (Tertiary canals) pumps, the repayment over a period not exceeding 5years.• Investment costs for civil works including mesqa remodeling, PVC pipes, lining ,..etc.• Costs are paid to government over a period not more than 20 years without interest.• Farmers pay O& M costs directly to WUAsPayment for mesqa investment: It is expressed as a proportion of incremental income attributed to irrigationimprovements and varies between 12% and 25 %.Subsurface Drainage Cost Recovery• An increase in crop yield by more than 20% due to installation of the drainage system has encouragedfarmers to participate in the programme and pay for it.• Cost Recovery has been made over more than five million feddan during the last 30 years.Cost Recovery in the new lands• The policy with respect to capital cost recovery is to recover no charges above the delivery point and aproportion of the investment costs below the delivery point.• Settlers on new lands are given a period of ten years before they are subject to any taxes. The averageyearly land taxes range from less than 10 L.E. / feddan to no more than 35 L.E. /feddan.Cost Recovery for operation and maintenance• Farmers pay L.E. 18 per feddan per year for mesqa maintenance in the old land, either to the governmentor as a contribution of labor cost recovery for O & M above the mesqa.• Farmers pay L.E. 18 per feddan per year for mesqa maintenance in the old land, either to the governmentor as a contribution of labourr cost recovery for O & M above the mesqa.• The capital costs for mesqa improvements under IIP are to be recovered over not more than 20 years,while the costs of pumping units and land leveling are to be repaid over three years.• Water service fees like volumetric charging would not be economically, socially, or politically feasible.• The basis for irrigation service charges should be crop-based and reflect crop water consumption.Source: Official Egyptian Presentation: Cost Recovery for Irrigated Agriculture - Egyptian Experience WATER DEMAND MANAGEMENT FORUM,Beirut, LEBANON – June 2002ply is either free or nominal to cover operation,maintenance and system upkeep carried out bythe community. Planning and development ofdomestic water supply and irrigation systemsand infrastructures are undertaken by the Government(AWDR National Report, 2005).According to the AWDR National Report, 2005,the cost of potable water in Botswana dependson the level of urbanization. A household in Gaborone,the capital, pays an average unit price ofP 4.69/ m 3 for a monthly consumption of 20 m 3. ,In smaller towns supplied by the National Water286
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AFRICANWATERDEVELOPMENTREPORT2006
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CONTENTSWater for Sustainable Socio
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ACKNOWLEDGEMENTSThis is the final v
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The African Water Development Repor
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INTRODUCTION - WATER FOR SUSTAINABL
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WATER FORSUSTAINABLESOCIO-ECONOMICD
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African Water Development Report 20
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INTERNATIONALAND AFRICANMILESTONESN
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INDICATORS -MEASURING THEPROGRESS O
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(i) Specific for a certain stress o
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Water and ecosystemWater and indust
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Purpose: Global water security prov
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Table 5.1: Adopted targets and indi
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Human Development Index (HDI): This
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The Environmental Sustainability In
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Significant Indicators - Libya1. Li
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ReferencesAfrica Facts: http://www.
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FRESHWATERRESOURCES INAFRICAThe mai
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annual flows of rivers and groundwa
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Fig. 4.3: Actual Renewable Water in
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Box 4.1: Water Availability and Ser
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Table 4.9: Surface Water by Watersh
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Table 4.12: Dynamics of Water Use,
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Figure 4.7: Major Groundwater Withd
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Annual freshwater withdrawals in Ea
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Fig. 4.12: Percentage of Domestic,
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Table 4.15: Desalination capacities
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Although some African countries hav
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Fig. 4.17: Water Poverty Index by S
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The problem of wastewater disposal
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FRESHWATER RESOURCES IN AFRICASourc
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Water Conference, December 3-7, 200
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PROTECTINGECOSYSTEMSIN AFRICAThe pr
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abstracted and flow regulated. Irri
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Fig. 6.2: Freshwater Ecosystem Area
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Figure 6.3: Water Availability and
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Table 6.4: Indication of the Microb
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Fertilisers are also a potential th
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Box 6.2Pollution Control - The Ethi
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Fig. 6.2: Freshwater Ecosystem Area
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Region/Country Mammals Birds Flower
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espective of the fact that some oth
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Protected areas in Africa occupy sl
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past few decades, population densit
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Fig. 6.12: Urban Ecosystem and Buil
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Fig. 6.13 Environmental Sustainabil
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Case Study: Sediment Control andAqu
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Fig 6.15: Comparison of Rainfall, D
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South Africa and Bophuthatswana. (D
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of interdependent factors which adv
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Referencesafrol News, 2001: Lake Ch
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United Nations Population Divison (
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Page 262 and 263: SHARING WATERFOR REGIONALINTEGRATIO
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Page 266 and 267: Table 11.3: Types of Management Ins
Page 268 and 269: Box 11.3Emerging Principles Underly
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Page 308 and 309: ENSURING THEKNOWLEDGE BASESince anc
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Page 330 and 331: Global Water Partnership ToolboxThe
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Page 334 and 335: Key Outputs: The first steps for th
Page 336 and 337: Figure 16.6: Number of Radios per 1
Page 338 and 339: particular relevance to data collec
Page 340 and 341: of water in agriculture through imp
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IWRM Course Participants according
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5.. Alemayehu Tafesse (Ethiopia), 2
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IMPLEMENTATIONOF TARGETS UNDERTHE A
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Public Participation;(d) Informatio
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a regional framework for Africa as
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Programme SubRegion Estimated Costs
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