AMPPPIDA presentation International Workshop on Assessing Models of Public-Private Partnership for Irrigation Development Mar 13, 2018 - 08:30 am to 02:00 pm GMT

1. Delivered by Dr. Ben Vas Nyamadi:
CEO - GIDA

2. Presentation outline
 Introduction
 Policy Issues in Irrigation Development
 Summary of Policy Review Process
 National Policy on PPPs
 Determinants of Irrigation PPPs
 Management of Irrigation Schemes
 Conclusion
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3. Introduction
 The Ghana Irrigation Development Authority
(GIDA) is a public sector organization established to
promote agricultural growth through the provision of
irrigation infrastructure and other Agricultural
Water Management (AWM) techniques.
 Irrigation development in Ghana officially began in
the early 1960s, as the Land Planning and Soil
Conservation Unit, Ministry of Agriculture.
 This was transformed over the years to GIDA in 1977 by
Supreme Military Council Decree (SMCD) No. 85
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4.  Besides SMCD 85 of 1977, the activities of the
Authority are guided by Legislative Instruments, LI
1350 of 1987 which provided for the regulation and
management of public irrigation schemes, LI 1995 of
2011 and LI 2230 of 2016 have been added to regulate
private investment in public irrigation and promote
establishment and regulation of Water Users
Associations (WUAs) nationwide.
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Introduction cont’d

5.  Until 2011, there was no sub-sector policy and so
irrigation development was dictated by projects and
programmes of MoFA
 However, the challenges in the irrigation sub-
sector over the years have necessitated the need
to take three initiatives with the purpose of
finding lasting solutions to the challenges.
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Policy Issues in Irrigation Development

6. Policy Issues cont’d
 The first initiative was the development of National Irrigation
Policy, Strategies and Regulatory Measures which guide
irrigation development in the country, was completed in 2005,
approved in 2010 and promulgated in 2011.
 The second initiative was a diagnostic study of the irrigation
sub-sector dubbed “The Ghana Agricultural Water
Management Pre-Investment Reform Action Framework”
undertaken in 2012 in line with the Comprehensive African
Agricultural Development Programme (CAADP).
 The third initiative was the development an Institutional
Modernization Plan for GIDA (Aug. 2013)
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7.  The first irrigation policy was completed in 2005,
approved in 2010 and promulgated in 2011.
 This policy was informed by Government objective of
increasing access to water for agricultural purposes
which is seen as key to achieving health and sustained
poverty reduction.
 Since then, several drivers of change suggest the need
for revision of this policy namely:
 The need for a national economy characterized by
greater commercial sector participation with respect to
agriculture and PPPs
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Policy Issues cont’d

8.  Ghana’s global commitment to SDGs and the Paris
agreement on climate change
 Expected changes to global agricultural sector which
anticipate trade-based solutions to global food security
in place of protectionist policies which currently prevail
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Policy Issues cont’d

9.  The revised irrigation policy needs to:
 Respond to a revised objectives cascade
 Establish a sector typology which includes PPPs but is
based on scheme financing modalities.
 Address the relevant portions of the GPRS and the
GSGDA with respect to irrigation/GIDA’s contribution
to agriculture sector commercialization in terms of both
transaction and operation models
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Summary of Policy Review Process

10.  Remove or contribute to the removal of
constraints that lie within the remit of an
irrigation sub-sector but which are not covered
by either the GPRS or the GSGDA
 Legitimise an appropriate institutional and
regulatory framework for modernized GIDA in a
commercialized agriculture sector.
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Policy Review Process cont’d

11.  The National Irrigation Policy, Strategies and
Regulatory Measures has been reviewed and validated
in view of the change in mandate of the Authority as a
result of the modernization and restructuring of the
irrigation sub-sector of Ghana and ready for approval by
Cabinet.
 The reviewed NIP and LI 2230 compel investors to
develop and allocate 30% of land to smallholders
 We are gradually reviewing irrigation PPPs in the
context of national policy on PPPs
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Policy Review Process cont’d

12.  The national policy framework on PPPs adopted by
Government in 2011 defines private participation in
infrastructure and service for better public service delivery.
 The policy contains a number of provisions relating to public
procurement, local content and dispute resolution.
 The PPP framework provides that:
 To enhance the attainment of the objectives of the policy, every
PPP arrangement shall have a clear matrix showing the allocation
of risks to the party best able to control and manage the
identified risks.
 Contracting Entities and approval authorities shall take the risk
allocation arrangement and the result of any Value for Money
assessment into account in considering the applicable PPP
method for any PPP Project.
 End-user ability to pay shall be a key consideration for all PPP
projects.
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National Policy on PPPs

13.  PPP projects shall be structured to encourage maximum
use of local content and technology transfer
 PPP projects must safeguard public interest and
consumer rights
 PPP projects must take into account environmental,
climate and social safeguards.
 LI 1350 of 1987 made no provision for local content
in PPPs apart from employing local people and
payment of Irrigation Service Charge.
 This challenge was address in 1995 of 2011
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National Policy on PPPs

14. Determinants of Irrigation PPP
 A partnership is not the same as an outsourcing
contract
 A partnership requires that:
 Each party commits an economic or financial good
(which need not be cash, it could be land or
infrastructure) in return for equity
 Each party accepts a share of the benefits (which need
not be cash, they could be sub-sectors contribution to
GDP growth or socio-economic transformation)
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15.  The policy specifies:
 The various potential PPP formulations
 GIDA’s role in a PPP
 Flow and nature of financing
 Processes to be followed for the establishment of a PPP
 As a result of this, newly established PPP projects such
as VEGPRO and Mosahamat are required by the new
policy and LI 1995 to devote 30% of the developed land
for smallholders to operate with a buy back
arrangement.
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Irrigation PPP cont’d

16.  With this irrigation Public Private Partnership (PPP)
arrangements, some of the schemes will be managed
by Scheme Management Entities (SMEs) who are
expected to expand if possible and will undertake the
following .
 The SMEs will undertake the following functions:
 Day-to-day management of the schemes,
 Operation and maintenance of infrastructure
 Collection and use of ISC
 Administrative activities
This is anticipated to enhance the sustainability of the
schemes while freeing public funds for other development
projects.
Management of Schemes

17. Conclusion
 LI 1350 of 1987 made no provision for PPPs
 Private entities which were engaged on public schemes
were only required to employ local people and pay ISC
 This was reviewed by the irrigation Policy of 2012
which requires entities investing in existing schemes
to make 30% of expanded irrigation area to
smallholders.
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18. Conclusion
 Irrigation is very critical for every country in attaining
food security and self-sufficiency levels of notable
crops especially rice.
 To the turn the tide against rice imports, it is
important to develop the irrigation potential to the
fullest and increase the investment to the sub-sector.
 This could be achieved with viable and workable PPPs
 Both government and private sectors have critical roles
to play in achieving this feat.
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