Page 40 - Demo Faces

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LOCAL CURRENCY LENDING FOR
IRRIGATION REHABILITATION
Project name:
Kazakhstan: Irrigation Rehabilitation Project 50387-001
Year:
2019
Funding:
250 million
Modality:
Loan
Department:
CWRD
Sector:
Natural Resources, Agriculture and Rural Development
Team:
Yaozhou Zhou
Irrigation systems variously diminished in capacity or became non-functional
Underinvestment in irrigation infrastructure
High water losses
Inadequate or damaged water metering and hydraulic structures
(i)
rehabilitate and improve irrigation and drainage networks serving 171,000 hectares of land, and establish a drip irrigation system covering 9,300 hectares
CHALLENGES: Poor operations
and maintenance (O&M) capacity of irrigation operator
Weak sta capacity and limited equipment for O&M
Outdated skills for irrigation and water infrastructure asset management
SOLUTIONS
(ii)
support farmer organizations to improve on-farm water management and diversify to high-value crops
Innovations
Obsolete agricultural practices and on-farm water management technologies Farmers do not have enough capacity to apply advanced farming technologies Poor links between markets, enterprises, and crop growers
(iii)
develop institutional capacity of Kazvodkhoz (KVK), a state owned enterprise, to improve its irrigation management and internal governance
TENGE
Local currency lending
Local currency loan to KVK to mitigate foreign currency risk as KVK’s revenue is in local currency
Use of geogrid
Reinforcement to replace traditional steel reinforcement of concrete for cost reduction
Asset management plan
Improve its tari planning and ensure cost recovery for O&M and investment
SCADA system
Help KVK control irrigation water management locally or at remote locations by monitoring, gathering, and processing real-time data for effective water management
Promote the development of asset management plan in irrigation projects
NEXT STEPS
Introduce the use of geogrid and SCADA in several irrigation rehabilitation and modernization projects under processing
Replicate local currency lending in central Asia countries for public sector projects