Download Azerbaijan - World Bank

BACKGROUND INFORMATION
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Population: 8.53 million (end 2006)
Rural 49
 Urban 51%
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Area: 86,600 sq. km
 Climate:
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Summer temperature: 30 degrees C
 Winter temperature: 4 degrees
 Rainfall: 200 – 300 mm
 Evapotranspiration 5x effective rainfall
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Some Socio Economic Indicators
GDP per capita:
2000: US $ 665
2003: US $ 900
2006: US $ 2,375
2000
2003
2006
sector
% GDP
% GDP
% GDP
oil industry
27.6
27.5
51.6
other industry
8.4
9.7
5.9
agriculture
15.9
12.2
6.9
construction
6.5
11.2
7.5
services
41.4
39.2
27.9
Main Features on Irrigation
AGRICULTURAL LAND
 Total agricultural land:
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Pasture:
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Cultivable land:
 Area developed for irrigation:
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By gravity:
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By lift:
 Actual irrigated area
 Irrigated area with drainage
4.72 million ha
2.92 million ha
1.8 million ha
1.43 million ha
0.87 million ha
0.56 million ha
1.10 million ha
0.65 million ha
AVAILABLE WATER
 Renewable water supply:
 Overall storage capacity:
 Average annual water use:
 Agriculture 70%:
 Irrigation water available per ha
32.2 billion cubic m
22.6 billion cubic m
12 billion cubic m
8.4 billion cubic m
5874 cubic m per ha
Developments in Irrigation Sector
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Responsibility for management and O&M of I&D infrastructure
from independent Irrigation Ministry to State Amelioration and
Irrigation Committee (1993) (Since 2006 Amelioration and
Irrigation Open Joint Stock Company)
Management according administrative boundaries. About 60
rayon Agency offices.
Abolition of state farms created a vacuum in management at
tertiary. Since 2000 on-farm infrastructure transferred to AIOJSC.
Insufficient funds for O&M. In 2002 budget US $ 36 million.
Estimated required budget two times higher
Introduction of Irrigation Service Fee in 1997, volume based. 0.12
to 0.60 US $ per 1000 cubic m, providing about 5% of the too low
SAIC budget
Formation of WUAs at tertiary level .
WUA Development: 1th stage
Formation of informal WUAs
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WUA Development 2nd stage
Formation of legal WUAs under some type of law
WUA development in Azerbaijan started in 1997
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Until June 2004, when the amended Law on
Amelioration and Irrigation was signed in by the
President, Azerbaijan did not have an adequate and
appropriate legal framework in place to establish
WUAs.
WUAs established till June 2004 are limited liability
enterprises established in accordance with the Law on
limited Enterprises and are from a legal perspective no
associations at all.
WUA Development 2nd stage
Formation of legal WUAs under some type of law
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Formation of 6 pilot WUAs (1000- 3900ha)
under Farm Privatization Project (FPP) in 1997
with the assistance of IDA/IFAD funds
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Rehabilitation investment US$ 220- US$ 1.070 /ha
Increased ISF collection and improved water
distribution and higher yields
Prepared standard model charter
No distinction between governance and
management
However model not fully replicable. (Chairman and
executive staff paid by project on declining basis)
WUA Development 2nd stage
Formation of legal WUAs under some type of law
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Impressive campaign in 2000/2001more than
500
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Established according to procedures and
documents developed under the FPP
WUAs are allowed to collect 25% of the amount
required to be paid to AIOJSC for their own O&M
costs
Effective in ISF collection
But not effective in informing general membership
and merely seen as an organization to distribute
water and collect ISF for AIOJSC.
WUA Development
Major lessons learned from 2nd stage
Major lessons learned from FPP and the campaign of 2000/2001 in
order to establish sustainable WUAs successfully were:
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A specific legal framework is needed
Clear distinction between governance and management level to
stimulate self management character of WUA and active
membership
Neither board members nor WUA staff should be paid from outside
sources
WUA concept needs broad promotion to get support from other
governmental (municipalities, local administration, ministry of
justice) and non-governmental (media) organizations.
Newly established WUAs need training in fields like good
governance, water distribution plans and financial management
Newly established WUAs need support after training to strengthen
knowledge learned during the training
Newly established WUAs need access to credit to rehabilitate the
deteriorated infrastructure on their territory
Transition between 2nd and 3rd stage
Based on the lessons learned the GOA took
following action simultaneously
 January
2003 GOA established within AIOJSC
Central Support Units in Baku and Nakhchivan and
Rayon Support Units in 60 rayons.
 Development of appropriate legal framework
started early 2003 and finished June 2004
 Preparation of Irrigation Distribution System and
management Improvement Project (IDSMIP) with
the technical and financial assistance of the WB to
promote new WUA concept and to restructure the
existing WUAs according to the amended law
WUA Development 3rd stage
Restructuring WUAs to clearly separate governance and
management: Amended Law on Amelioration and Irrigation
The amended Law on Amelioration and irrigation
provides a special chapter, consisting of 15 articles,
regulating the foundation, registration, organization and
supervision of WUAs in Azerbaijan.
In order to implement the amended Law, the CSU
prepared:
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Model WUA statutes (both for General Assembly and
Representative Assembly
Long-term (10 years) Water Supply Agreement
Annual Water Supply Contract
Long-term (20 years) System Transfer Agreement (usufruct)
System Inventory Act
WUA Development 3rd stage
Restructuring WUAs to clearly separate governance and
management: Project to implement new WUA concept (IDSMIP)
The development objective of the Irrigation
Distribution System and Management
Improvement Project is:
 To improve the effectiveness and financial
viability of irrigation water distribution and
management on 56,000ha (project rayons)
 Through provision of support to WUAs and
the AIOJSC
 Project period 2004-2009
WUA Development 3rd stage
PROJECT COMPONENTS (IDSMIP)
1.
Development of WUAs (US $6.95
million)
2.
Irrigation and Drainage Infrastructure
Rehabilitation (US $30.00 million)
3.
Project Management (US $2.15 million)
WUA Development 3rd stage
Component 1: Development of WUA
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Activity 1: Development of capacity to
train and strengthen WUAs
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Activity 2: WUA strengthening
WUA Development 3rd stage
Activity 1: Development of capacity to train and
strengthen WUAs
Project assists development of institutional
capacity of newly established SU by
financing:
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office and training equipment, vehicles, and
incremental operational funds of the 2 CSUs and
RSUs in 11 project rayons
small allocation for office and equipment for other
48 RSUs
TA to train the staff of the SUs to develop the
capacity of the SUs to establish, train and support
and strengthen WUAs
WUA Development 3rd stage
Activity 2: WUA strengthening
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Awareness campaign to launch new WUA
concept.
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Sensitizing water users by means of organizing
awareness seminars
Awareness meetings with national and local
government and staff of relevant ministries
Public information campaign
After initial awareness campaign formal
training and active guidance by RSU staff.
 WUAs selected for rehabilitation will receive
limited amount of equipment related to O&M
tasks of the WUA
WUA Development 3rd stage
Present State of Affairs: capacity building
Training of staff of Support Units
 Together with the CSU staff the TA team prepared training material on the
following main subjects:
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WUA formation procedures
Training skills
Administration
Financial management
Annual operation plan
Annual maintenance plan
 Together
with CSU staff TA team trained RSU staff in 12 project rayons in
above mentioned subjects. Finished by the end of 2006
The close cooperation between CSU staff and TA team established
the required capacity within the AIOJSC organization to train RSU
staff in non project rayons. This training in non-project rayons is still
going on.
WUA Development 3rd stage
Present State of Affairs: WUA restructuring
Awareness campaign to launch new WUA concept
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RSU staff organized together with four Mobilization Specialists (local
consultants) numerous awareness meetings
CSU staff organized in each rayon awareness meetings with representatives of
local government and municipalities
CSU with support of the PIU conducted public information campaign
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4 brochures, 5 posters
From Nov. 2005 onwards 30 minutes/quarter radio broadcasting
Since beginning of 2007 quarterly newsletter on WUA news
Numerous articles in newspapers (at least 3 per quarter)
Recently the preparation of video clips started
Number of restructured WUAs
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186 of the 197 planned WUAs in the project rayons
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Average size WUA: 2,049ha
Average plot size farmer ±2 ha
220 of the ± 400 in the non project rayons
WUA Development 3rd stage
Present State of Affairs: WUA strengthening
Strengthening of WUAs consists mainly of training
WUAs on financial management and drafting annual
operation and maintenance plan
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RSUs in project rayons started training WUAs from January
2007 onwards
In 12 project rayons 679 training sessions were held
Initial evaluation of the WUA training program shows that RSU
staff is able to apply the skills and knowledge they learned
during their training
Level of WUA board members and executive staff is rather
diversified, which asks for intensive guidance of WUAs after
training them
WUA Development 3rd stage
Present State of Affairs: WUA strengthening
Besides training of WUAs in a selected
number of WUAs rehabilitation works of the
I&D infrastructure is going on
 In four WUAs rehabilitation works are under
construction
 For four WUAs evaluation of tenders are
carried out
 For four WUAs designs have been prepared
WUA Development 4th stage
WUA federation
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