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

1. 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,
Sudan
18
-­‐ 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

2. 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
Delegation
of
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

3. 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.

4. Consistency of
Irrigation
PPP
program
Dar
Khrofa Perimeter Development
Project
Superficie:
21
000
ha
Cost :
2,8
MMDH
Project
to
safeguard
the
irrigated
plain
of
Saiss
Superficie:
30
000
ha
Cost :
4
MMDH
Project
for
the
development
of
first
part
of
extension
of
the
Gharb plain
Superficie:
42
800
ha
Cost :
6
MMDH
Azemmour-­‐Bir Jdid Coastal
Zone
Development
Project
Superficie:
3200
ha
Cost:
265
MDH
Development
project
downstream
of
the
Kadoussa dam
Superficie:
5442
ha
Cost:
600
MDH
Project
to
safeguard
the
citrus
farming
area
of
​​El
Guerdane
Superficie:
10
000
ha
Cost :
987
MDHDesalination
Irrigation
Project
in
the
Dakhla Area
Superficie:
5
000
ha
Cost :
1,3
MMDH Finalised projects
Priority
projects
to
achieve
in
the
short
term
Priority
projects
to
achieve
in
the
average
term
Chtouka Ait
Baha
desalination project for Irrigation
Superficie:
15
000
ha
Cost :
2,5
MMDH

5. 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

6. 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 its
contribution to infrastructure funding, in a
sector that has always been managed by the
State

7. The PPP project involves several actors: MAPM which is the delegating authority, users, the
basin 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.

8. • Currently, the realization by the operator of hydro-­‐agricultural project was
completed in July 2009 and the water network performed (work having
started in April 2007).
• The project was inaugurated by His Majesty King Mohammed VI dated 02
October 2009.
• The project is now completed and operational since that date
State
of
progress
Inauguration
by
His
Majesty King
Mohammed
VI:
October 2,
2009

9. • The Directorate of Irrigation and Development of Agricultural Land is
responsible for the monitoring of this project with the support of the Regional
Office of Agricultural Development of the Souss-­‐Massa (ORMVA-­‐MS).
• A set of monitoring indicators has been defined in line with the project
specifications and delegated management responsibility including all project
aspects: the construction of irrigation infrastructure, the provision and pricing
of water, management of water services (operation, maintenance, cost
recovery), the relationship of the operator and users, etc.
Control
and
Monitoring

10. 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 their
increasing trend and some even reached record levels, especially collected and
distributed water volumes to users.

11. Conclusion:
What
are
the
potential
benefits
of
a
public-­‐private
partnership?
• Improve the quality of service by allowing both sectors to do what they do
best.
• Government acts as the regulator and focuses on planning services and
monitoring 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 contract
stimulate innovation.
• Improve cost-­‐effectiveness by taking advantage of private sector innovation,
experience and flexibility.
• PPPs can often deliver more cost-­‐effective services than traditional
approaches. The savings that accrue can finance other services.
• Increase investment without raising public debt. PPPs can reduce
governments’ capital costs and help to bridge the gap between infrastructure
and service needs and governments’ financial capacity.
• The private sector can often earn extra revenues from third parties, thereby
reducing the cost to the public sector.
• Better allocation of risk, as a core principle of PPP is to allocate risk to the
party best able to manage it at lowest cost.

12. Contact:
oudrhiri.salma@gmail.com
s.oudrhiri@agriculture.gov.ma