STATE AUDIT OFFICE OF GEORGIA

ECONOMIC AFFAIRS 31 December, 2014
Irrigation System Management: Better response to farmers’ needs is possible by improved water distribution and clear state policy
Period: 2014, 2013, 2012

Provision of reliable irrigation service is necessary to ensure productivity growth in agriculture sector. Therefore, rehabilitation and institutional modernization of the irrigation sector is of utmost importance, alongside with the other relevant measures. Namely, providing service in efficient manner and institutional development of the irrigation sector are crucial for the positive benefits generated by the government’s increased efforts in this field to reach the ultimate beneficiaries-the farmers.

Within the scope of the present audit report the State Audit Office has examined the quality of the irrigation service, economic viability of the existing irrigation system as well as organizational and environmental issues. Main findings of the audit are as follows:

  • Utilization of the irrigation service is partial-according to the official data, irrigation service is delivered to  less than half of the irrigable area
  • In the audited period the LLC “United Amelioration  Systems Company of Georgia” had not produced and implemented procedures/guidelines that would ensure reliable service and equitable distribution of water between the farmers
  • The farms positioned in the vicinity of the head dam/origins of the canal consumed water in quantities that exceeded their realistic requirements whereas the farms in the middle and end of the canal were experiencing acute water shortage
  • The managing partner of the LLC-the Ministry of Agriculture has not determined what combination of the social and economic objectives would be acceptable for the State. In particular, it is not specified  what financial and operational benchmarks are to be met taking into the consideration the increase of the irrigable area
  • Fixed tariff set for irrigation services, calculated as 75 GEL per hectare is not flexible and is not related to the quantity of consumed water
  • Organization of the farms in the different possible forms, which would correspond to the better international practice and ensure farmer’s involvement in the operation and maintenance  of the tertiary irrigation networks with the aim to improve the quality of service and cut down the maintenance costs, is at the initial stages

The State Audit Office is of the opinion that practical implementation of the recommendations issued within this audit will assist bodies involved in the execution of the state irrigation policy to improve the quality of the irrigation service and bring the management of the irrigation sector closer to the better international practice.