Irrigation management by a private irrigation operator (PIO) under a fixed-term management contract: An alternative approach to managing irrigation in Nepal

Most of the agency-built surface irrigation systems in Nepal the operation and maintenance (O&M) of which are being managed by irrigation agencies jointly with farmers are not performing satisfactorily. The unreliable delivery of irrigation services to farmers is one of the reasons for this. Thus, the most important challenge in the past and in the present is how to enhance the delivery of irrigation services to farmers.

If one examines the private sector management of other public enterprises, they are efficiently delivering services to their clients. Considering this aspect, the government of Nepal recognized that irrigation systems or parts of them may also be managed through private irrigation operators (PIOs) under a fixed-term management contract to enhance their service delivery.

This paper analyses the O&M of jointly managed irrigation systems (JMISs) and suggests that a lack of capacity, accountability and incentive mechanisms on the part of irrigation agencies are the principal causes pertaining to the deficient delivery of irrigation services in them. It further suggests that introducing PIOs in managing the operation and maintenance of part of the JMISs can address these causes. The paper argues that the said PIO approach is viable from financial, technical and managerial perspectives.