Demonstrating Enhanced Productivity of Irrigated Agriculture System through Multifunctional Water Users Associations

A Pilot Demonstration Activity (PDA)

Supported Under

Regional Technical Assistance for Knowledge and Innovation Support (RETA 6498)

of Asian Development Bank (ADB)

Mid-Term Report

Submitted by:

INPIM-Nepal

In Association with:

Nepal Engineering College (nec) Changunarayan, Bhaktapur

&

Farmer Managed Irrigation System Promotion Trust-Nepal (FMIST-Nepal)

July 14, 2010 (Revised based on the Workshop held on 20th August)

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Abbreviations and Acronyms

ADB Asian Development Bank AMIS Agency Managed Irrigation System CBO Community Based Organization CMIASP Community Managed Irrigated Agriculture Sector Project DDC District Development Committee DOI Department of Irrigation DOA Department of Irrigation FFS Farmers’ Field School FMIS Farmer Managed Irrigation System FMIST Farmer Managed Irrigation System Promotion Trust INPIM-Nepal International Network of Participatory Irrigation

Management-Nepal Chapter IWMI International Water Management Institute KW Kilo-Watt NGO Non-Governmental Organization NFIWUAN National Federation of Irrigation Water Users

Associations-Nepal O&M Operation and Maintenance PDA Pilot Demonstration Activity RETA Regional Technical Assistance VDC Village Development Committee WUA Water Users’ Association

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Table of Contents

Page 1. Background 1 2. Description of the Proposed Activities 1 3. Accounts of the Activities Completed in the Past 2 4. Work Plan and Progress Made in the Reporting Period 3

4.1 Review of Literatures 3 4.1.1 Proposed Plan 3 4.1.2 Tasks Accomplished 4 4.2 Policy Review 8 4.2.1 Proposed Plan 8 4.2.2 Tasks Accomplished 9 4.3 Process Documentation Study 10 4.3.1 Aim of the Activity 10 4.3.2 Selected PDR Sub-Projects for Process Documentation 11 4.3.3 Approach to Process Documentation Study 12 4.3.4 Task Accomplished and Outcomes 13 4.4 Case Studies on Self-Evolving Multifunctional WUAs 14 4.4.1 Aim of the Case Study 14 4.4.2 Approach to the Case Study 15 4.4.3 Selection of the Irrigation Systems for the Case Study 16 3.4.4 General Findings 16

4. Tasks Remaining to be Completed 23

Annexure Annex-I: Chronology of Development Intervention under CMISP in Tanting Kalikoshi Irrigation System 24 Annex-II: Chronology of Development Intervention under CMISP in Sikharkateri Irrigation System 30 Annex-III: Chronology of Development Intervention under CMISP in Iku Dha Irrigation System 32 Annex-IV: Check List used for Data Collection for the Case Study 34

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1. Background International Network on Participatory Irrigation Management- Nepal Chapter (INPIM-Nepal) together with Farmer Managed Irrigation System Promotion Trust (FMIST) and Nepal Engineering College (nec) submitted a proposal seeking funding under Pilot Demonstration Activity (PDA) under Regional Technical Assistance for Knowledge and Innovation Support (RETA 6498) of Asian Development Bank (ADB), towards undertaking of a study, titled Demonstrating Enhanced Productivity in Irrigated Agricultural System through Multifunctional Water Users’ Association. The overall objective of the study has been to evaluate the potential for and merit of building multifunctional Water Users’ Associations (WUAs) in Nepalese irrigation systems. The study aims to identify the factors and processes promoting, supporting and/or constraining the processes of evolution of multifunctional WUAs. The specific objectives of the study have been as follows:

i) To evaluate the factors, environment, and processes supportive and/or constraining the evolution of multifunctional WUAs.

ii) To identify the support services needed for the evolution of multifunctional WUAs. iii) To document the process of forming multifunctional WUAs.

The outcomes of the study are expected to be useful in the execution of the Community Managed Irrigated Agriculture Sector Project (CMIASP, ADB Loan 2102) currently being implemented in the Central and Eastern Development Regions of Nepal. CMIASP aims to enhance the agricultural productivity and sustainability of farmer-managed irrigation systems by providing improved measures for irrigation infrastructure, agricultural development, and livelihood enhancement. Under CMIASP, WUAs are expected to be empowered to manage irrigation infrastructures, agricultural support services, and livelihood enhancement activities, thus are envisaged to function as a multifunctional social institutions in the irrigated agricultural systems. In this context the findings of the study are expected to be useful in developing and/or improving processes in capacitating WUAs to evolve as multifunctional institutions. This mid-term report has been prepared to enumerate the progress made in the project until July 14, 2010. The draft report has been modified based on the feedback and suggestions received during the half-day workshop organized on August 20, 2010 wherein the findings of the report were presented to INPIM members and other invitees. The report describes the progress made in the four component areas of the study within the stated time period. 2. Description of the Proposed Activities The study includes following four activities to be accomplished in the course of July 14, 2009 to December 31, 2010 as per revised plan (approved by ADB based on inception report submitted as of December, 2009):

i. Review of relevant literatures and secondary sources of information, with regards to the experiences on the value and processes of development of

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multifunctional WUAs within the country and outside. ii. Review of policy frameworks and institutional arrangements likely to

support/foster or impede the processes of development of multifunctional WUAs.

iii. Process based analysis of evolution of multifunctional WUAs in selected FMISs undergoing the process of rehabilitation and improvement and intensification of agricultural technology and support services and capacity building under CMIASP.

iv. Case studies on selected FMISs and those public sector irrigation schemes brought under participatory joint management or management turn-over under irrigation management transfer initiative of DOI, demonstrating successful models/examples of self-evolving multifunctional WUAs.

3. Account of the Activities Completed in the Past The activities that were undertaken and accomplished in the past and reported in the inception report submitted to ADB as on November, 2010, are:

i. Finalization of the Study Methodology and Work Plan: The methodological approach of the study and the work plan for each of the four components of the study were developed and finalized. This also included finalization of the schedule of the activities to be undertaken and accomplished at different stages. Accordingly a revised schedule of the study was developed and submitted along with the inception report as on November, 2010. The schedule also outlined the deliverables in each component of the study and their timeframes.

ii. Selection of the Irrigation Systems for Process Documentation Study: Three irrigation systems for process documentation study- Tanting Irrigation System in Jhapa District, Sikharkateri Irrigation System in Kavre District and Iku Dha Irrigation System in Lalitpur District, were selected. While identifying and selecting these irrigation systems for the process documentation, detailed inventory of the three irrigation systems pertaining to characteristics and performance of social and institutional systems were also collected in order to develop strong base line information. The development of the base line information was found essential to be able to account and analyze the changes as a result of planned intervention under CMIASP.

iii. Recruitment of Process Documenters: In order to undertake the documentation of the events and processes of intervention in each of the three irrigation systems, one process documenter was recruited in each system. These process documenters were stationed in the field to undertake the task of documenting the processes and events of intervention beginning November 8, 2009. Prior to the field deputation, a training program was organized during March 15-17, 2010 wherein two persons from each irrigation system were trained on process documentation methodology. Besides other qualifications, the enthusiasm and performance demonstrated by them in the course of the training was used as a strong basis in recruiting one of them as process documenter in each system.

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iv. Formation of Steering Committee and Sub-Project Level Review Committees: A steering committee was constituted on September 7, 2009 with Deputy Director General (Planning) of DOI as the chairperson and representatives from other relevant organizations as the members. The steering committee is expected to provide coordinating role in the course of the undertaking of the study and ensure the execution of the study findings. Similarly, at the level of each of the three sub-projects, sub-project level review committees were constituted to review the outcomes of the process documentation study periodically.

v. Inception Workshop: An inception workshop was organized on March 11, 2010 at Hotel Greeenwich Village in Lalitpur. The objective of the workshop was to brief the participants the overall approach of the study, activities proposed to be undertaken in different components, their methodological approaches and the schedule. The workshop was participated by 36 personnel representing different organizations, including those from DOI and CMIASP.

4. Work Plan and Progress in the Reporting Period This section describes the work plan in undertaking the four activities stated in section-2 and the progress made in each of them until July 14, 2010. 4.1 Review of Literatures 4.1.1 Proposed Plan Review of relevant literatures focused to experiences on multifunctional roles of WUAs and their linkages to the performance of irrigated agricultural system and irrigation services. This has been envisaged as an important part of the study towards accomplishing the overall outcome of the study. The aim of this activity is to lead towards compiling and developing bibliographical review on multifunctional WUAs based on the experiences in Nepal and in other parts of the world, with emphasis on those in South Asia. The direction of focus of the literature review has been envisaged as stated hereunder:

i. Policy prescriptions and initiatives towards the development of WUAs in the irrigation systems, under the farmers', joint and public sector management regimes, specifically in relation to the evolution of multifunctional WUAs.

ii. Positive and/or negative consequences resulting from multifunctionality of WUAs on operation and management functions, irrigation service delivery and delivery of support services in irrigated agricultural system, leading to enhanced performance and sustainability of irrigated agriculture.

iii. Processes of evolution of multifunctional WUAs and the constraints thereto.

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iv. Needs of support services contributing to the evolution of multifunctional WUAs.

v. Contextual variables (social, economic, institutional and political) permitting and/or constraining the evolution of multifunctional WUAs.

While the literature review has been envisaged as a continued activity in the course of the study, the outcome of the literature review is expected to be compiled and synthesized periodically in order to keep track on the tasks accomplished and those remaining to be accomplished. A synthesis of the tasks accomplished in the course of the literature review is provided in the following section. 4.1.2 Tasks Accomplished Following literatures have been reviewed in attempt to documenting and compiling the experiences with the multifunctional role of WUA in Nepal and in other parts of the world:

i. Uphoff, N.T (2004). Irrigation Association and Improved Irrigation Performance. In Report of APO Seminar on Linking Main System Management for Improved Irrigation Management held in Sri Lanka, June 3-8, 2002. Asian Productivity Organization.

ii. Wijayaratna C.M (2004). Role of Public and Private Sectors, NGOs and Water Users’ Association and Other Stakeholders in Irrigation Management in 21st Century. In Report of APO Seminar on Linking Main System Management for Improved Irrigation Management held in Sri Lanka, June 3-8, 2002. Asian Productivity Organization.

iii. World Bank (2002). The Role of Rural Producers Organization in the World Bank Rural Development Strategy, Pierre-Marie Bosc, Didier Eychenne, Karim Hussein, Maire-Rose Mercoiret, Pierre Rondot and Sadie Mackintosh-Walker (eds.). Rural Development Strategy Background Paper No. 8, The World Bank Rural Development Family.

iv. USAID (2006). Water Users’ Associations (WUAs) in Afghanistan. Development Alternatives Inc.

v. IWMI (2006). Raising irrigation productivity and releasing water for intersectoral needs (RIPARWIN): RIPARWIN final technical report by University of East Anglia, Overseas Development Group and Sokoine University of Agriculture, Department of Agricultural Engineering, Soil Water Research Group & International Water Management Institute (IWMI) Africa Regional Office.

vi. Boisvert, R. N. and Chang, H. H. (2006). Multifunctional agricultural policy, reduced domestic support and liberalized trade: an empirical assessment for Taiwanese rice. IWMI.

vii. Gioradano Meredith, Samad M. and Manara R. (2006). Assessing the outcomes of IWMI’s research and interventions on irrigation management transfer.IWMI.

viii. Barbara van Koppen, Patrick Moriarty and Eline Boelee (2006). Multiple-Use Water Services to Advance the Millennium Development Goals. IWMI.

ix. Regmi A.R. (2007). Water security and Farmer Managed Irrigation Systems in

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Nepal. In Natural Resources Security in South Asia: Nepal’s Water, Fiona Rotberg and Ashok Swain (eds.). Institute for Security and Development Policy, Sweden.

x. Shivakoti, G. (2007). Coping with Policy, institutions and Governance Challenges of Water Resources Issues with Special Reference to Irrigation in Nepal. In Natural Resources Security in South Asia: Nepal’s Water, Fiona Rotberg and Ashok Swain (eds.). Institute for Security and Development Policy, Sweden.

xi. Shrestha S.P (1987). Multifunctional, Non-Residential Irrigation Organization: A Case Study of Kodku Irrigation System in Kathmandu Valley. Proceedings of a National Seminar in Irrigation Management in Nepal, organized at Bharatpur, Nepal, June 4-6, 1987. IIMI, IAAS and Winrock International.

xii. Gautam, U. (1987). Institutional Building and Rural Development in Nepal: Godkhar Water Users Committee. Proceedings of a National Seminar in Irrigation Management in Nepal, organized at Bharatpur, Nepal, June 4-6, 1987. IIMI, IAAS and Winrock International.

xiii. Pradhan, P. (2002). Water Users Association Towards Diversified Activities: Experience of Nepal and Other Countries. Discussion Paper, Workshop in Political Theory and Policy Analysis, Indiana University.

xiv. The World Bank (2005). Shaping the Future of Water for Agriculture: A Source Book for Investment in Agricultural Water Management. Agricultural and Rural Development (ARD).

xv. Sinha, S (undated). The Conditions for Collective Action: Land Tenure and Farmers’ Group in Rajasthan Canal Project. Gatekeeper Series No. 57. IIED, Swedish International Development Authority (SIDA).

xvi. Abernethy, C. L. (1998). The functions of information, communication, transparency and accountability in promoting institutional reform and co-operation. In Abernethy and Heim (eds.) : Institutional reform and co-operation in irrigated agriculture, with special reference to Lao PDR and Vietnam. DSE/ZEL, Feldafing/Zschortau, Germany.

xvii. Bernethy, C. L., Sally, H., Lonsway, K., and Maman, C. (2000). Farmer-based financing of operations in the Niger Valley irrigation schemes. Research Report 37, International Water Management Institute, Colombo, Sri Lanka.

xviii. Batuwitage, Gamini P. 1999. Farmers Organizations to Farmers Companies: A Mode of Operation of Growth and Equity , in Prachanda Pradhan (ed) Role of Institutions in Rural Community Development, Tokyo: APO.

xix. Groenfeldt., David. Moving Upstream: Changing Roles for the Users and the State in Irrigation Management. (WWW.inpim.org)

xx. Frederiksen, H. D., and Vissia, R. J. (1998). Considerations in formulating the transfer of services in the water sector. International Water Management Institute, Colombo.

xxi. Ostrom, E. (1992). Crafting institutions for self-governing irrigation systems. Institute for Contemporary Studies, San Francisco.

xxii. Ostrom, E. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. NY: Cambridge Press.

xxiii. Ostrom, E. 1994. Neither Market nor State: Governance of Common-Pool Resources in the Twenty First Century. Washington, DC, IFPRI.

xxiv. Pradhan, Prachanda. (ed.). 1998. Irrigation Association for Participatory

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Management in Asia. Tokyo: Asian Productivity Organization. xxv. Pradhan, Prachanda. 1989. Patterns of Irrigation Organization in Nepal, IIMI:

Colombo, Sri Lanka. xxvi. Pradhan, Prachanda. (ed.). 1999. Role of Institutions in Rural Community

Development. Tokyo: APO. xxvii. Pradhan, P., and Bandaragoda, D. J. 1998. Legal and institutional environment of

water users’ association for sustainable irrigation management. In: Pradhan, P. (ed.), 1998: Irrigation association for participatory management in Asia. Proceedings of a seminar at Lahore. Asian Productivity Organisation, Tokyo.

xxviii. Reidinger, Richard. 2001. “Bank seeks Sustenance for WUA Model” in China Development Brief, Vol. IV. No. 1, Summer, 2001.

xxix. Warsakoon, M. B. 1999. Empowerment of Farmers Association in Sri Lanka: Farmers Organization Development and Farmer Company in Prachanda Pradhan (ed) Role of Institutions in Rural Community Development. Tokyo: APO.

The review of literature has led to following observations: i. The recent trend is that WUAs are taking up, besides irrigation and water management,

other activities that relate directly to enhancing the productivity and income opportunities in irrigated agriculture. They have to do with the needs of the water users for other services. As members of WUAs are engaged in many activities, in the farming as well as for domestic work, to diversity the income opportunities for themselves and to have a secure and enjoyable living in the community, irrigation and water management are not always the only problems for them. Members of WUA are working in agriculture. The farming profession needs the engagement of WUAs in many other services, such as supply of farm inputs and credits, transportation and marketing of products, processing of the agricultural products, settling of disputes among themselves and receiving services and assistance from outside agencies.

Farmers are also engaged in other economic activities, social undertakings and cultural affairs. These functions and activities are of minor concern. Attention is to be given on agriculture services in order to have farmers’ needs fulfilled. Many activities in the agricultural profession are done individually by the farm family. Other activities need joint actions of farmers to receive the desired and satisfactory results. One of the services is water supply to the farm land. It needs cooperation with other water users, joint actions for O&M as well as for small repair works.

Other functions and activities may be taken up by the WUAs because there is a need for such services to the members. This can be due to poor access to services, cost effectiveness of the delivery of services and lower cost to the members. The need for multifunction organization is due to institutional vacuum, increase in the viability and profitability, need of leverage, credibility and legitimacy and the limited managerial capacity in the village.

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ii. Examples of multifunctional WUAs come from many Asian and African Countries. The evolution of multifunctional WUAs is often contextual. This is often observed in those contexts where support services rendered by the formal government institutions or private sectors are weak. In such areas, demand for agricultural inputs and technology encourages WUAs to accept more diversified roles. Some researchers tend to link the multifunctional role of WUAs to the financial needs and thereby increased investment capacity for regular operation and management. The classical model of FMIS in Nepal did not have large needs for cash. Traditionally, they would collect fees from members in kind or labor. Office bears and functionaries, such as water guards, might be remunerated in terms of quantity of paddy or labor exemption for maintenance. Resource mobilization might mean principally the mobilization of a labor force from among the member households, to repair the head works after a flood and to remove sediments from channels. Contrarily, in the large complex systems, such as those in lift irrigation systems that involve electromechanical equipments for water pumping, the need for mobilizing greater level of cash arises to be able to fund the regular and periodic repair and maintenance. This situation may lead to WUA accepting more diversified roles for mobilizing funds from among the users.

iii. In Vietnam Agriculture Cooperative is also made responsible for irrigation management

and water distribution and delivering operation and management functions in the irrigation systems. An Agriculture Cooperative undertakes multiple functions like irrigation management, negotiation with River Basin authority for allocation of water to the irrigation systems, agriculture input supply to the farmers, rice mill operation as business proposition and dealership of fertilizer distribution. On the other hand, such activities are also undertaken by private entrepreneurs, thus the farmers have option of procuring the inputs from agricultural cooperatives or private entrepreneurs and shop operators (Abernethy, 1998).

Sri Lanka has program to make WUA as multi-function organization. Instead of WUA, they have given name as Farmers Organization and tie in the Farmers organization for increasing agriculture production for consumption within the country and, at the same time, these farmers organizations have to be capable to interact with the environment brought by globalization of the economy (Batuwitage, 1999).

Taiwan has tradition of more effective WUAs. WUA is effective technically and economically. All the agricultural extension activities are delivered through the WUAs. Secondly, WUAs undertake business activities like operation of the Farmers Bank. Farmers have confidence with the co-workers so they deposit their savings in Farmers Bank. The WUAs in Taiwan have been politically powerful because they have accumulated enough deposit in the bank. They even channel their deposit for the investment in the industries.

China has developed the system that water charge collection has been made the responsibility of the WUA itself and the collected money/ resources to be used towards the O&M of that system. There is no provision of government subsidy for O&M in China. In order to mobilize more resources, WUA is allowed to look for number of

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alternatives for resource mobilization. These are allowed even to undertake small enterprises for the resource mobilization in order to fund the operation and maintenance and modernization of the irrigation systems. Multiple activities would include the establishment of tea shops on the bank of the canals, opening of the area of irrigation system for recreation and entertainment. If they have reservoir system, it will be used for recreation and fishing purpose. Desilted clay from the canal would be sold for brick making (Reidinger, 2001).

iii. The WUAs in Nepal and in many other countries, even to this date, are considered as

non-entity. They are not considered as the organizational resource at the grass root level. It is equally important to know about the environment whether they are allowed to undertake multifunction activities. On many occasions, WUAs are formed only for rehabilitation of the irrigation systems. After rehabilitation, the importance of WUA gradually diminishes. The importance of WUA as viable socio-economic organization and their potential role in the development of irrigated agricultural system is yet to be recognized in many parts of the world.

iv. There are authors who take more critical view on multifunctional roles of WUAs for the fear that multifunctional engagements might dilute the efforts of the WUAs in the water services in the irrigation systems. For example, Frederickson and Vissia (1998) warn against the multifunctional activities of irrigators organizations. They have negative view on multi-functional organizations: “the function and skills required for operation and maintenance of water sector services are quite straight forward and quite different from the commercial activities that could earn funds of any consequence. One does not find long established, successful water service entities engaged in activities unrelated to their water sector services".

4.2 Policy Review 4.2.1 Proposed Plan The policy review relating to irrigation, agriculture and cooperative movements in Nepal is envisaged to be focused towards analyzing the policy environment supporting and/or impeding the evolution of multifunctional WUAs in irrigated agriculture. The review is proposed to be focused on:

i. Direction of policy frameworks relating to irrigation, agriculture and cooperative development before and after 1970s to establish envisaged policy linkages to evolution of WUAs, and more specifically to multifunctional WUAs in irrigated agriculture. (The time lines of before and after 1970s have been set considering major shift in development policy beginning this time, emphasizing decentralization, people’s participation, inclusion and strengthening of community base organizations and their increased role in the agricultural and rural development processes).

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ii. Development planning and programs resulting from the policy emphases (and also due to the shift in the policy emphases) at different periods of time and their outcomes.

iii. Institutional evolution resulting from policy emphases (and also due to the shift in the policy emphases) at different periods of time and their outcomes.

iv. Identification of strengths (and also constraints/limitations) in the existing policy frameworks and institutional arrangements, supporting/impeding the evolution of multifunctional WUAs.

The compilation and synthesis of the policy review has been proposed to be accomplished in two stages: i) interim analysis based on the review of framework and prescriptions of sectoral policies related to irrigation, agriculture, rural development and cooperative development and the roles of CBOs and more specifically the role of WUAs envisioned therein, and ii) final analysis based on the synthesis of the sectoral policies in the context of evolution of CBOs and more specifically WUAs in the irrigated agricultural system. 4.2.2 Tasks Accomplished The reviews of policies carried out to date include the review of National Water Resources Strategy (2002); National Water Plan (2003); Irrigation Development Policy (2003) and Agricultural Perspective Plan (1995). Besides the review of these sectoral policy documents the approach to development in periodic Five Year Development Plans are also being reviewed in order to analyze the continuum of policy prescription/reforms relating to irrigation, agriculture and cooperative development in Nepal. The outcomes of the policy review to date have been as stated hereunder:

i. The Irrigation Policy (2003) recognizes the WUAs as functional entity and viable social organization and envisages the involvement of WUAs at all stages of irrigation development and operation and management of irrigation infrastructures and services in the post construction phase. However, outside the domain of irrigation infrastructure and services, the role of WUA is been virtually non-existent. These are not recognized as the organizational resource at grass root level. On many occasions the WUAs are formed only to undertake the rehabilitation and improvement of irrigation infrastructures or to facilitate in the transfer the management responsibilities from the irrigation agency to organized groups of users. This situation impedes the processes for the WUA to diversify its activities and undertake multifunctional roles in the irrigated areas.

ii. The Water Resources Act (1993) states that ultimate ownership of all the water

resources in the country is vested to the state and the state grants only usufruct right to any form of water use from the surface as well as groundwater sources. The act also lays out the statute for licensing or registration to acquire usufruct right. As of now two approaches to registration of WUAs are in practice. These are either registered as Association Registration Act (1978) or with the District Water Resources Committee under Water Resources Act (1993). The registration of the

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WUAs under Water Resources Act recognizes them only in the context of irrigation services and the act, in any way, does not lay down the provisions for the diversification of the activities of the WUA.

An inventory of WUAs in the country developed by Department of Irrigation (DOI) recognizes existence of 796 registered WUAs in farmer and agency developed irrigation schemes in the country. A large number of WUAs which are not registered are not even recognized by the state for their existence. A national level federation of irrigation water users’- called National Federation of Irrigation Water Users’ Association (NIFWAN) has been constituted at the national level. Again the bulk of WUAs who have obtained membership in NIFWAN are only those which are duly registered under Water Resources Act or Association Registration Act.

iii. The Decentralization Act (1999) contradicts with the Water Resources Act in terms

of recognizing the WUAs and their roles in water management at the local level. The Decentralization Act recognizes the role of Village Development Committees (VDC), Municipalities and District Development Committees (DDCs) in managing the water resources at the local level.

iv. The Department of Agriculture does not recognize the existence of WUAs. They

form separate commodity groups and the delivery of agricultural extension and other support services are provided through such groups. Even under Second Sector Irrigation Project where provisions were made for agricultural development in the irrigated areas and the budget was allocated in the project for this purpose, the agriculture extension activities were undertaken through the farmers group formation, not through WUA which was formed at the time of rehabilitation of the FMISs under the project. So WUA was forced to confine its activities only on water related roles.

4.3 Process Documentation Study 4.3.1 Aim of the Activity A significant part of CMIASP approach to the development of irrigation infrastructures and services are focused to the institutional development and capacity building of water users and WUAs for their effective engagements in the operation and management of irrigation infrastructures and services. Alongside the support towards improvement of the physical infrastructures, the project also intends to develop the institutional capacity of WUAs for their increased engagements in promoting such activities in irrigated agricultural, as: i) dissemination of improved agricultural technologies through farmers’ field school (FFS); ii) seed multiplication for local level seed security; iii) market promotion; iv) promotion of women participation; vi) linkages with micro-finance institutions for access to micro-credit; vii) vegetable gardening; and viii) income generation. All these activities are expected to create multiplier effects in the agricultural productivity enhancement, employment generation, poverty alleviation and sustainable development of irrigated agriculture.

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Implicit in the stated activities are capacitating the WUAs to undertake multiple roles in irrigated agriculture, alongside of their existing roles in the operation and management of irrigation infrastructure and services. CMIASP has proposed series of capacity building and promotional activities to be undertaken in tandem with the intervention in the rehabilitation and improvement of the physical infrastructures in the irrigation schemes. In order to document the processes and experiences in the course of undertaking of the rehabilitation of physical infrastructures and capacity building and promotional activities, process documentation study has been proposed in three irrigation schemes (hereinafter called PDR sub-projects) where intervention under CMIASP is currently underway. The process documentation study has been proposed to be undertaken over a period of one year from November 8, 2009 to November 30, 2010, with following specific objectives:

i. To document the processes and experiences in the course of undertaking of the activities relating to rehabilitation and improvement of physical infrastructures in the process documentation sub-projects.

ii. To document the processes and experiences in the course of undertaking of the activities relating to capacity building of water users and WUA in such areas as promotion of improved agricultural knowledge and technology, market promotion, women participation, micro-credit and income generating activities.

iii. To note the progression in the rehabilitation and improvement in the irrigation infrastructures and capacity building and identify the changes needed in the activities and/or processes thereto for enhanced effectiveness of envisaged improvements.

The process documentation has been considered to be an important part of the proposed study leading to generating real time data/information on processes leading to development of multifunctional WUAs. The outcome of the study is also expected to be valuable for micro-policy formulation relating to undertaking of the proposed intervention in the selected PDR sub-projects and replicating the experiences in the other sub-projects based on the experiences gained in the PDR sub-projects. 4.3.2 Selected PDR Sub-Projects for Process Documentation Following three sub-projects have been selected for the process documentation study from among 27 Batch-1 sub-projects identified for rehabilitation and improvement support under CMIASP:

i. Tanting Kalikoshi Irrigation System in Arujundhara VDC in Jhapa District ii. Sikhar Kateri Irrigation System in Ravi Opee VDC in Kavre District iii. Iku Dha Irrigation System in Thaibe VDC in Lalitpur District

Other characteristics of the sub-projects are presented in Table- 1.

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Table- 1: Physical and Institutional Characteristics of Selected Sub-Projects for Process Documentation Study

Physical and Institutional Characteristics

Tanting Irrigation System, Jhapa

Sikhar Kateri Irrigation System, Kavre

Iku Dha Irrigation System, Lalitpur

Location Arjundhara VDC, Jhapa District

Raviopi VDC, Kavrepalanchok District

Thaiba and Godavai VDCs, Lalitpur District

Present Area under Irrigation Command

160 ha 70 ha 70 ha

Potential Area under Irrigation Command

200 ha 100 ha 70 ha

Name and the Nature of the Source

Tanting and Kali Khola (Perennial)

Chhahare Khola (Perennial)

Godavari Khola (Perennial)

Number of Households 243 92 331 Existence of WUA Registered WUA Registered WUA Registered WUA 4.3.3 Approach to Process Documentation Study The approach to the process documentation study in the PDR sub-project involves systematic documentation of the events and processes relating to:

i. Improvement of physical infrastructures in the irrigation schemes undertaken as a part of the support under CMIASP

ii. Capacity development of WUA in irrigation service delivery and in the undertaking of effective operation and management services in the irrigation schemes.

iii. Improvement in the agricultural technology and practices aimed at enhancing the productivity of irrigated agriculture.

iv. Initiatives of market promotion, women participation, micro-credit and income generating activities aimed towards diversification of income opportunities of water users and their livelihood improvement.

In undertaking the process documentation works in each of the three PDR sub-projects, a process documenter has been deputed in each sub-project beginning November 8, 2009, who has been selected from among the water users with following qualifications:

i. User of the irrigation system knowledgeable of and actively engaged in activities relating to irrigation and agriculture but not a functionary in existing WUA.

ii. Academic qualification: At least 10th grade who could effectively read, write and communicate (This qualification in the selection of the process documenter could not be met in Tanting Irrigation System in Jhapa and Sikharkateri Irrigation System in Kavre, therefore process documenter who has satisfactory

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reading and writing skills have been selected and deputed) iii. Socially active and having some experience of working in CBOs or local NGOs. iv. Interested to undertake the task.

The three process documenters deputed in each of the three sub-projects have been trained in undertaking the process documentation works. The framework for the process documentation has been envisaged as stated in Fig. 1. The process documenters are expected to record all the events and processes taking place in the irrigation systems systematically on a daily basis, that include:

• Tasks relating to rehabilitation and improvement of the irrigation infrastructures undertaken on different dates.

• Decisions made in WUA on different dates with regards to the improvement in the physical infrastructures and services and those relating to strengthening and intensifying the agricultural practices.

• Decisions relating to resources mobilization. • Capacity building of WUA undertaken by Department of Irrigation through

CMIASP and other agencies. • Resolution of conflicts emerging in the course of undertaking of the

improvement of the physical infrastructures in the irrigation system. • Any other events and processes relevant to the strengthening of the WUA or

the irrigation system.

Fig. 1 Framework of Process Documentation Study in the Selected Irrigation Systems

4.3.4 Tasks Accomplished and Outcomes The systematic recording of the events and processes in the course of undertaking of the rehabilitation and improvement of irrigation infrastructures and services and capacity building of WUA in the three irrigation systems beginning April 11, 2009 is presented in Annex-I (Tanting Kalikoshi Irrigation System in Jhapa District), Annex-II (Sikharkateri Irrigation System in Kavre District) and Annex-III (Iku Dha Irrigation System in Lalitpur District). While a detailed process analysis of the events and processes in the course of undertaking of the rehabilitation and improvement in the three irrigation systems is due, followings have been the

Process • What? • When? • How? • Who? • Where?

Input Output

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general observations based on the records of the events and processes in the three irrigation systems:

i. The emphasis of CMIASP as well as the WUA has been on speedy accomplishment of the construction works so that all the works could be completed within the stipulated period of time. The WUAs in all the three systems seemed more concerned about the completion of the construction works of the intake so that water could be distributed to the users in the forthcoming dry season.

ii. The WUAs in all the three systems have been conscious of the quality of the

construction works. The WUAs in all the three systems have developed their own system of monitoring and supervision of the construction works. The system of monitoring and supervision seems stronger in Tanting Irrigation System in Jhapa and less strong in Iku Dha Irrigation System in Lalitpur. In Tanting Irrigation System, WUA has constituted a separate team for day to day monitoring and supervision of the physical construction works to ensure the quality of the construction works.

iii. The activities relating to capacity building of WUA in all the three irrigation

systems, envisaged under CMIASP, have been limited to leadership training and training programs on operation and management of the irrigation system and the management of construction works and quality control. There have been no activities of support relating to diversification of the activities of the WUA and diversification of income opportunities and livelihood improvement of water users.

iv. The activities relating to dissemination of pertinent agricultural technology and

knowledge seems stronger and on a more regular basis in Tanting Irrigation System followed by Sikharkateri Irrigation System. There have been no such activities in Iku Dha Irrigation System to date. The FFS (Farmers’ Field School) approach to agricultural technology dissemination and enhancing the capacity of the users to on-farm water water management has not been started in any of the three irrigation systems.

4.4 Case Study on Self-Evolving Multifunctional WUAs 4.4.1 Aims of the Case Study There are several examples of FMISs and Agency managed Irrigation Systems (AMISs), where WUAs are engaged in activities beyond regular operation and management of irrigation systems and delivery of irrigation services, such as those relating to input and marketing of agricultural produce, income generation, livelihood improvement and social development works. These demonstrate successful models of self-evolving multifunctional WUAs. As a part of the PDA activities it was found useful to look into the processes of evolution of such multifunctional WUAs which will provide valuable inputs with regards to: i) value of multifunctional engagement of WUAs in the irrigated agriculture, ii) complementary or

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contradicting roles of multifunctional role of WUAs with the regular irrigation operation and management activities, iii) processes of evolution of multifunctional WUAs and stages thereto, and iii) scope of replicating the successful models of multifunctionality in other irrigation systems. It is in these premises that case studies on successful models of multifunctional WUAs in FMISs and AMISs have been undertaken as an important part of the proposed study. The approach to system identification and methodological tools in undertaking the case study in the selected systems is elaborated in the following sections. 4.4.2 Approach to the Case Study The case studies were undertaken in selected FMISs and AMISs that were essentially exploratory and diagnostic in nature. The case studies in the selected system were accomplished in two stages. The first stage involved review of secondary sources of information (published and unpublished reports, diagnostic studies, feasibility studies and past research works) relating to the selected irrigation systems. This helped generating the background information on the systems. The second stage involved in-depth diagnosis of the processes that led to evolution of multifunctional WUAs in the selected irrigation schemes. The lines of inquiries at this stage involved:

i. Timelines of multifunctional engagements of WUAs ii. Areas of multifunctional engagements iii. Benefits resulting to water users from multifunctional engagements of WUAs iv. Supporting and Contradicting roles of multifunctional WUAs to regular

operation and management and the delivery of irrigation services v. Support services available from government agencies and non-governmental

organizations vi. Lessons learnt

The case studies provided opportunity for the analysis across the cases to seek answer to following questions:

i. What are the positive or negative effects of multifunctional engagements of WUAs on performance of irrigation and/or irrigated agricultural system?

ii. Does multifunctional engagement of WUAs lead to development of sustainable irrigation institution?

iii. What are the processes and stages of evolution of multifunctional WUAs? iv. Is there a potential for translating multifunctionality of WUAs in other irrigation

schemes and what could be the effective processes thereto? The collection of information from the selected cases was carried out through interviews of the farmers and functionaries of the irrigation systems using a checklist (Annex-IV).

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4.4.3 Selection of Irrigation Systems for the Case Study The original plan was to carry out case study in a total of 8 FMISs and AMISs with multifunctional engagement of WUAs, representing different agro-ecological zones, community mixes and structural complexities. In the course of developing the methodology for the case study, the original plan was revised to include 10 cases for the study. Of these, case studies in total 7 irrigation systems were carried out during June-July, 2010. These included:

i. Sardihola-Puranchaur Irrigation System in Kaski District- Western Mid Hills (Agency Developed).

ii. Hemja Irrigation System in Kaski District – Hill River Valley (Agency Developed)

iii. Naubise Phant Irrigation System in Kavrepalanchok District- Central Mid Hills (Agency Developed)

iv. Hamsambhe Nimu Khola Multipurpose Irrigation System in Panchtahar District- Eastern Mid Hills(Self Evolving- No external support)

v. Baise Kulo in Nawalparasi District- Inner Terai (Developed by Migrant Community- Agency Supported)

vi. Khaurawa-Hadha Irrigation System in Palpa District- Western Mid Hills (Western Mid Hills- Self Evolving)

vii. Palung Khola Irrigation System in Baglung District- Western Mid Hills (Agency Supported, Inaccessibility- No influence of Market Forces)

The irrigation systems that were included for the case study largely represented FMISs located in the Mid-Hills and Hill River Valleys. Therefore three other irrigation systems, representing AMISs undergoing management transfer and at least one irrigation system located in Terai, have been planned to be included, thus making total of 10 irrigation systems. This will provide opportunity to look into the spectrum of irrigation systems for the envisaged analysis across the cases from different agro-ecological zones. The salient features of the 7 irrigation systems that were included in the case study are provided in Table- 2. 4.4.4 General Findings At present the case study writing is being carried out with the aim of making an analysis across the case systems to be able to analyze the pattern of evolution of multifunctional roles of the WUA and the processes thereto. The aim of this exercise is to produce a publishable document based on the analysis of 10 cases with multifunctional roles of the WUAs. The general findings based on the cursory analysis of the processes and pattern of evolution of multifunctional WUAs in the 7 case systems are as under:

i. The analysis of the 7 cases revealed, in general, three modes of multifunctional roles in the WUAs:

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a. Multifunctional roles resulting from multiple water use from the same water source. These included such multiple water uses as, irrigation, hydropower (water mill and micro-hydroelectric system), non-conventional irrigation technologies (drip, sprinkler, runoff ponds and surface and groundwater lift).

b. Multifunctional roles resulting from additional activities relating to enhanced income opportunities and livelihood diversification. These include such activities as input supply and marketing of agricultural produce, credit and saving cooperative, rural infrastructure development, education and health services.

c. Multifunctional roles resulting from enhanced roles of WUAs in natural resources management and conservation of watershed based resources.

ii. The process of WUA entering into multifunctional roles was found to be supported

by increased income opportunities of the farmers due to crop diversification and agricultural productivity enhancement. This increases the investment capacity of the users and also of WUAs to endeavor into other activities. This process is also supported by increased needs for products and technology diversification, need for the increased access to the market and access to information and technology.

iii. The WUAs entering into multiple roles is usually noticed in those areas which are

either inaccessible or where linkages to the market or support services are not strong. This is apparent from the cases of Puranchaur in Kaski District and Hamsambhe Nimu Khola Multipurpose Irrigation System in Panchthar District. The WUAs, by entering into multiple roles in these situations develops a mechanism to link the irrigation system to market and increased access to support services provided by different agencies.

iv. Diversification of the activities of the WUAs also diversifies the sources of income

and enhances the capabilities of the WUAs to invest into maintenance and upkeep of the irrigation infrastructure and services. Thus, multifunctional roles of the WUAs seem to be contributing positively to the sustainability of the irrigation system.

v. The WUAs in the irrigated areas constitute enormous social capital. This potential

of WUAs is largely unexplored. They have inherent potential to be transformed into farmers’ cooperatives in the irrigated areas with multiple roles.

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Table-2 Salient Features of the Irrigation Systems Included in the Case Study S/N Name of the

Irrigation System Irrigated

Area/Location Year of

InitiationSource of Support

for Irrigation Development/ improvement

Multifunctional Engagements of WUA Remarks

1. Saridikhola-Puranchaur Irrigation System

500 ha in Bhurjungkhola VDC (Ward No.1) and Puranchaur VDC (Ward Nos. 6, 7, 8 & 9) in Kaski District

1991- 1997

Nepal IrrigationSector Project(NISP)

• Jansewa Credit and Saving Cooperative Started by WUA beginning 1994. The share capital of the cooperative has grown to Rs. 12.31 million. • The cooperative started different kinds of

saving programs. • The cooperative is also engaged in the supply of

seeds and chemical fertilizers. • Two water mills are in operation at Puranchaur.• WUA engaged in the plantation of trees- Uttis

(Alnus nepalensis), Napier Grass and bamboo along the canal banks and in the barren public lands. In 2010 the WUA earned income of Rs. 58,000 with the sale of forest products. • WUA engaged in the promotion of coffee

production under agro-forestry system. As of now 33 farmers are involved in coffee production. Last year they sold 2.5 Tons of raw coffee beans @ Rs. 27 per kg.

Registered WUA formed in 1991

2. Hemja Irrigation System

350 ha in Ward Nos. 1, 2, 3, 4 and 9 of Hemja VDC in Kaski District

1982 Asian Development Bank

• WUA initiated a Multipurpose Farmers’ Cooperative (Krishak Bahuuddreshiya Sahakari Sanstha Ltd.) in 2001. The share capital of the cooperative has now grown to Rs. 14.1 million. • The cooperative is actively involved in

supplying seeds and fertilizers to the farmers. • The irrigated area of Hemja Irrigation System

has evolved as vegetable production area with most of the supply going to adjoining city of

Registered WUA formed in 1993

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Pokhara. Every year farmers in the area have been importing poultry manure worth Rs. 10 million from Chitwan District. This is used in the production of vegetables, especially potato. • The WUA has been instrumental in developing

a Highway Agricultural Produce Marketing Center which is involved in marketing of the agricultural produce grown in the area.

3. Naubise Phant Irrigation System

150 ha in Panauti Municipality (Ward No. 10) and Ward Nos. 2,3,4,5 and of Sharada Batase VDC in Kavrepalanchok District

2001-2004

• The development of the irrigation system has contributed to complete transformation of livelihood and economy of the people in the area. With the availability of irrigation, the farmers in the area started growing two potato crops after rice which has been major source of households’ cash income. • The farmers in the area have started keeping

one or two dairy animals (cow or buffalo) for milk production. There is a dairy cooperative operational in the area. Milk production has been source of supplemental earning for the farmers. • The first credit and saving cooperative in the

area was started in 1997. Since this time total of 12 credit and saving cooperatives have been started in the area and 9 of them were started after the development of the irrigation scheme. Although WUA has not been directly involved in starting the credit and saving cooperatives, it has been essentially change in the economy of the people with the development of the irrigation schemes that led to increased savings of the farmers necessitating the initiation of credit and saving cooperatives.

Registered WUA formed in 2002

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4. Hamsambhe Nimu Khola Multipurpose Irrigation System

25 ha of land in Ward No. 1 of Chilling VDC. The Hydropower produced in the scheme serves 120 households in Ward No. 1 of Chilling VDC and Ward Nos. 4 and 5 of Pauwa Sartap VDC.

1970 No external support for the development of irrigation canal.

• In 2007 the WUA approached UNDP supported Rural Energy Development Program (REDP) for the development of a 13 KW Micro Hydropower System. The cost of development of the system was Rs. 2 Million, of which REDP provided Rs. 840,000, WUA obtained a credit of Rs. 200,000 from Agricultural Development Bank and the users raised cash @ Rs. 8,000 per household. • WUA has developed a water mill with grain

milling and oil expelling equipments. The operation of the water mill has been leased out to a local entrepreneur at the cost of Rs. 45,000 per annum payable in three installments. • A system of water storage and pumping system

has been developed at the cost of Rs. 84,000 supported by UNDP which is used in operating drip and sprinkler irrigation system for growing vegetables and green pepper (locally called Akbare Khursani) which costs Rs. 500 to 600 per kg in the local market. Mainly women farmers are involved in the production of green pepper which has enhanced their income levels.

Registered WUA formed in 2006

5. Baise Kulo 80 ha in Dumkibas VDC in Nawalparasi District

Initiated in 1979 and expanded to 80 ha in 1988

Support of Irrigation Line of Credit (ILC) Program in 1992 for the rehabilitation and physical infrastructure development. Following the rehabilitation and

• The WUA has been instrumental in starting a community forestry program in 1997. This was started as a part of conservation and restoration initiative in the headwater area. Total of 252 households participated in the community forestry program that included the users of the irrigation system and other households from adjoining area. Following the community forestry program, the available water supply at the source has become more dependable and the frequency of landslide and damage to the main canal in the upstream area

Registered WUA formed in 1984

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improvement under ILC support the operation of the system became more reliable.

has reduced.

6. Khaurawa-Hadha Irrigation System

Ward No. 6 of Madanpokhara VDC in Palpa District

Initiated in 1995 and completed in 2000

No external support except small amount of support from District Agricultural Development Office

• 60 out of 98 water users are member of Udyamshil Krishak Multipurpose Cooperative Ltd. This cooperative was started by 25 women members who started a credit and saving cooperative in the beginning. This cooperative is now involved in the supply of seeds and fertilizer and plant protection chemical besides supplying daily essential commodities to the people in the area at cheaper cost. • 20 water users are member of Multipurpose

Agricultural Cooperative Ltd. This cooperative is involved in the marketing of vegetables grown in the area. The daily transaction of this cooperative is of the order of Rs. 80,000 to Rs. 100,000 per day. • Many water users are members of

Madanpokhara Community FM Radio (106.0 MHz). This radio station has been instrumental in awareness and building in the area and disseminating pertinent information on agricultural technology. The radio station broadcasts the price of vegetables in the local market of Tansen and in other parts of the country two times a day, in the morning and evening, based on which the farmers in the area decide to market their produce.

Unregistered WUA

7. Palung Khola Irrigation System

27 ha Dhusa and Tyang villages in

Initiated in

Support of ILO under Dhaulagiri

• WUA installed a water mill in the canal in 1995 Registered WUA formed

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Chisti VDC in Baglung District.

1988 and later expanded and improved in 1989 under ILO support

Irrigation Development Project (DIDP)

with equipments for grain milling and oil expelling. The installation of the mill greatly reduced the travel time and drudgery of the villagers to reach to grain mills outside the village. The operation of the mill has been leased out to a local entrepreneur for Rs. 6,000 per annum. • In 2005, the WUA installed a micro-

hydropower system to generate 10KW of electricity. The cost of development of the system was mobilized by the users @ Rs. 10,000 per household from 34 households. Each household is entitled to using 80 Watt of electricity for which they pay Rs. 60 per month as electricity tariff. One year later the WUA started selling electricity to other 48 households in adjoining Phoksing village where each household is entitled to using 60 Watt of electricity. The amount collected form electricity tariff is used to pay for the watchman and operator of the hydropower plant and also towards the maintenance and upkeep of the hydropower system, water mill and the irrigation canal.

in 1989

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5. Tasks Remaining to be Completed The tasks remaining to the completed as part of the proposed study in the remainder period of the study, are as under:

i. The progress in the review of relevant literatures relating to multifunctional roles of WUA and related experiences has been though satisfactory; this activity is proposed to be continued until the end of September, 2010. The expected output of this study is to lead towards developing a comprehensive bibliographical review on experiences with multifunctional roles of WUA in Nepal and in other parts of the world.

ii. The progresses in the policy reviews relating to multifunctional roles of WUA have

been rather slow. Though some attempts were made to review the sectoral policies relating to irrigation, agriculture and rural development, this activity needs to be strengthened with more vigorous attempts to the reviews of the relevant policies in the days ahead. Considering the available time frame for the completing of the study, major parts of the policy reviews have been proposed to be completed by the end October, 2010.

iii. The progress made to date in the documentation of processes of rehabilitation and

improvement of physical infrastructures in the three irrigation systems- Tanting Irrigation System (Jhapa), Sikharkateri Irrigation System (Kavre) and Iku Dha Irrigation System (Lalitpur), have been satisfactory. This activity will be continued until the end of November, 2010 so that year long documentation of the events and processes could be completed to be able to make process based analysis of rehabilitation and improvement and capacity building of WUAs in the three irrigation systems.

iv. Relating to the process documentation in the three irrigation system, the aim has

been to share the findings of the process documentation works with the personnel relating to CMIASP at the sub-project level and also at the central level of CMIASP coordination unit. A half day workshop with the aim of disseminating the findings of study was organized on August 20, 2010 which was attended by more than 40 personnel representing different organizations including those from Department of Irrigation and CMIASP. The findings of the process documentation works needs to be disseminated on a more regular basis at the sub-project level in the days to come.

v. Of the 10 case studies on multifunctional roles of WUA in farmer and agency

managed irrigation systems that has been proposed, case studies of 7 irrigation systems have been completed to date. Currently writing of the case studies is in progress which is expected to be completed by the end of September, 2010. Case studies in three other irrigation systems will be completed by the end of September, 2010 so that study on total of 10 case systems, representing spectrum of irrigation systems from different agro-ecological zones, community mixes and structural complexities, could be completed.