The Cost of Irrigation Water in the Jordan Valley

The purpose of this study was to determine the financial cost of irrigation water in the Jordan Valley and the corresponding impact of higher water prices on farming. The analysis shows that JVA needs significant tariff increases to be able to attain a more financially sustainable footing. In case...

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Main Authors:	van den Berg, Caroline, Al Nimer, Sana Kh. H. Agha
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	IRRIGATION AGRICULTURE WATER PRICING COST RECOVERY WATER USE POVERTY IMPACT OF IRRIGATION PRICE INCREASES JORDAN VALLEY
Online Access:	http://hdl.handle.net/10986/23997

id	okr-10986-23997
recordtype	oai_dc
spelling	okr-10986-239972021-04-23T14:04:18Z The Cost of Irrigation Water in the Jordan Valley van den Berg, Caroline Al Nimer, Sana Kh. H. Agha IRRIGATION AGRICULTURE WATER PRICING COST RECOVERY WATER USE POVERTY IMPACT OF IRRIGATION PRICE INCREASES JORDAN VALLEY The purpose of this study was to determine the financial cost of irrigation water in the Jordan Valley and the corresponding impact of higher water prices on farming. The analysis shows that JVA needs significant tariff increases to be able to attain a more financially sustainable footing. In case JVA wants to at least cover its operating and maintenance costs in 2013, it will require JD 0.108 per m3 - assuming that the current cross-subsidies and current inefficiency levels remain unchanged. Yet, if the JVA would be able to reduce its billing and collection inefficiencies, the required irrigation water tariff drops to JD 0.066 per m3. The more efficient JVA becomes in providing irrigation water, the smaller the required tariff increases. The JVA can improve its efficiency by (i) changing billing and collection practices; (ii) change in the revenue policies; and (iii) efficiency gains in the delivery of JVA services. The impact of tariff increases on farmers’ incomes is in general very moderate because water costs make up only a small part of the total cost of farming. Certain cropping patterns will be much more affected by the tariff increases than others. It is especially crops that tend to consume large volumes of water (citrus), that will feel the impact of the irrigation water tariffs. Because the agricultural sector in Jordan is under stress, any government policy to rationalize irrigation water subsidies should where possible try to increase the resilience of farmers. The farmer survey found that 17 percent of the survey respondents could be classified as poor for which specific measures may be needed to help them cope with the effect of higher water prices. 2016-04-01T20:37:03Z 2016-04-01T20:37:03Z 2016-03-31 Report http://hdl.handle.net/10986/23997 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Middle East and North Africa Jordan
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	IRRIGATION AGRICULTURE WATER PRICING COST RECOVERY WATER USE POVERTY IMPACT OF IRRIGATION PRICE INCREASES JORDAN VALLEY
spellingShingle	IRRIGATION AGRICULTURE WATER PRICING COST RECOVERY WATER USE POVERTY IMPACT OF IRRIGATION PRICE INCREASES JORDAN VALLEY van den Berg, Caroline Al Nimer, Sana Kh. H. Agha The Cost of Irrigation Water in the Jordan Valley
geographic_facet	Middle East and North Africa Jordan
description	The purpose of this study was to determine the financial cost of irrigation water in the Jordan Valley and the corresponding impact of higher water prices on farming. The analysis shows that JVA needs significant tariff increases to be able to attain a more financially sustainable footing. In case JVA wants to at least cover its operating and maintenance costs in 2013, it will require JD 0.108 per m3 - assuming that the current cross-subsidies and current inefficiency levels remain unchanged. Yet, if the JVA would be able to reduce its billing and collection inefficiencies, the required irrigation water tariff drops to JD 0.066 per m3. The more efficient JVA becomes in providing irrigation water, the smaller the required tariff increases. The JVA can improve its efficiency by (i) changing billing and collection practices; (ii) change in the revenue policies; and (iii) efficiency gains in the delivery of JVA services. The impact of tariff increases on farmers’ incomes is in general very moderate because water costs make up only a small part of the total cost of farming. Certain cropping patterns will be much more affected by the tariff increases than others. It is especially crops that tend to consume large volumes of water (citrus), that will feel the impact of the irrigation water tariffs. Because the agricultural sector in Jordan is under stress, any government policy to rationalize irrigation water subsidies should where possible try to increase the resilience of farmers. The farmer survey found that 17 percent of the survey respondents could be classified as poor for which specific measures may be needed to help them cope with the effect of higher water prices.
format	Report
author	van den Berg, Caroline Al Nimer, Sana Kh. H. Agha
author_facet	van den Berg, Caroline Al Nimer, Sana Kh. H. Agha
author_sort	van den Berg, Caroline
title	The Cost of Irrigation Water in the Jordan Valley
title_short	The Cost of Irrigation Water in the Jordan Valley
title_full	The Cost of Irrigation Water in the Jordan Valley
title_fullStr	The Cost of Irrigation Water in the Jordan Valley
title_full_unstemmed	The Cost of Irrigation Water in the Jordan Valley
title_sort	cost of irrigation water in the jordan valley
publisher	World Bank, Washington, DC
publishDate	2016
url	http://hdl.handle.net/10986/23997
_version_	1764455374976450560

The Cost of Irrigation Water in the Jordan Valley

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