Công văn 3213/BNN-TL

To: People’s Committees of Provinces, cities under the Central Government control

Recently, the Party and State of Vietnam have promulgated a number of policies on strengthening and developing Water User Organizations (WUOs) aiming to improving farmer’s participation in management and protection of irrigation systems – so called PIM.

Resolution No 06 dated November 10, 1998 by Political Bureau on agriculture and rural development issues refers to policies on encouraging the participation of farmers in investment and irrigation system management.

Resolution No 15 dated March 18, 2002 by Central Party Committee at the fifth meeting, ninth term on speeding up industrialization and modernization of the agriculture and rural areas in 2001-2010 periods emphasizes the development of water user organizations and water management of farmers.

Following decree No 143/ND-CP dated November 28, 2003 by the Government stipulating in detail the implementation of a number of articles of Ordinance on Exploitation and Protection of Hydraulic works dated April 4, 2001 and in order to concretize policies and orientation of the State and Party, Ministry of Agriculture and Rural Development has drafted the Framework Strategy on development of Participatory Irrigation Management in Vietnam. This strategy has been revised by a number of Central and local agencies as well as international organizations via their official dispatches and workshops. The Ministry of Agriculture and Rural Development hereinafter, would like to inform the Framework Strategy on development of Participatory Irrigation Management in Vietnam for enforcement.

Based on the content and roadmap in this Strategy, People’s Committee of Provinces or Central Cities in the whole country shall lead Department of Agriculture and Rural Developments and concerned agencies to establish action plans, which are suitable with specific status and conditions of each province, set up regulations on decentralization of irrigation schemes, plan on irrigation management transfer.

Provinces are required to often report implemented results of the roadmap to the Ministry of Agriculture and Rural Development (via Department of Water Resources – No 2- Ngoc Ha – Ba Dinh – Ha No) for further revision.

FRAMEWORK STRATEGY ON DEVELOPMENT OF PARTICIPATORY IRRIGATION MANAGEMENT IN VIETNAM
(issued as an attachement to Letter No 3213/BNN-TL dated December 30, 2004 by Ministry of Agriculture and Rural Development)

1. CURRENT SITUATION OF IRRIGATION DRAINAGE SCHEMES AND THEIR MANAGEMENT

For decades, the State and people of Vietnam have tremendously invested to develop and rehabilitate many hydraulic systems for irrigation, drainage, flood control, aquaculture, electric generation, navigation, tourism, etc. These huge water resource infrastructures development and rehabilitation have resulted in largely important contributions to ensuring food security, water conservation, environmental protection and sustainable development of agriculture rural life.

Existing organizations involved in management of these irrigation and drainage systems consist of:

- 130 State-owned enterprises or Irrigation and Drainage Management Companies (IDMCs), which not included management stations and management boards of separate hydraulic works.

- More than 10.000 agricultural cooperatives serving irrigation and drainage activities in large and medium-scale systems, and over other 2.000 water user organizations acting as “a bridge” between IDMCs, local authorities and farmers in irrigation and enforcement of laws and policies on irrigation scheme management.

Currently, irrigation and drainage management still face many challenges including cumbersome and ineffective management devolution and behavioral practice, especially in terms of relationship and responsibilities between IDMCs and water users organizations. In some irrigation systems, farmers continue to depend on Government's subsidy for operation and maintenance (O&M) and do not pay sufficient water fees. Meanwhile, State’s budget for O&M is limited and insufficient to meet requirements of repair and rehabilitation. Furthermore, IDMCs are unable to provide the desired irrigation and drainage services. This leads to a situation under which irrigation and drainage schemes continue to deteriorate and operate with low effectiveness.

2. THE ROLE OF FARMERS IN IRRIGATION SCHEME MANAGEMENT

2.1. Current situation of participatory irrigation management - PIM

Following the policy on "the State and people working together", farmers in different regions have contributed significantly to the investments in irrigation systems with various levels ranging from 12% of the total investment in the Red River Delta, to 30-50% in other regions and to 80-100% for small-scale irrigation schemes managed by their own.

According to current statistics, about 91% of the irrigation systems are managed by IDMCs serving about 80% of the country's irrigated area. The remaining 9% of irrigation systems are managed by farmers irrigating for about 20% of the irrigated area. In large-scale systems, on-farm structures are mainly managed by farmers. As a result, the effectiveness of irrigation and drainage systems not only depends on the headworks and main systems but also on the on-farm systems and farmer’s (beneficiaries) role in investment and O&M...

The Government has promulgated many policies on the implementation of Participatory Irrigation Management (PIM). Currently, a number of PIM models have been developed and have proven to be effective. PIM principles have been accepted by farmers but PIM has been not yet expanded. This contributes to the low performance of irrigation and drainage schemes and low efficiency of Dims.

2. Achievements and obstacles in PIM implementation

2.1. Achievements

Water user organizations and cooperatives undertaking irrigation and drainage services within a village or a commune have been established in many places forming a water management networks under the orientation of participatory irrigation management in the whole country.

Since 1995, under the support of international organizations such as ADB, WB, DANIDA, non governmental organizations such as Oxfam Great Britain, Oxfam Hong Kong, some PIM models such as Water User Cooperatives, Water User Associations in Than Hoa, Nghe An, Lao Cai provinces, etc have been established, operated and achieved certain successes. Especially, some Water User Cooperatives (WUCs) have undertaken managing structures, which were transferred by local authorities within the scale of inter- communes. These WUCs have effectively operated and supported actively by farmers. Efficiency of these models has been summarized and presented in many conferences and seminars. This is a premise and good chance for PIM development in Vietnam in both short- term and long-term.

Currently, almost investment projects on new construction, rehabilitation and repairs of irrigation systems comprise PIM and IMT aspects. Especially in Technical Assistance (TA) Projects, PIM models have been set up and gained significant experiences in PIM formulation and activities. Some provinces have realized the role of PIM and worked out policies on strengthening organization and development of these models, establishing the steering board to instruct PIM implementation in their areas.

2.2. Obstacles and reasons

2.2.1 Policies

- PIM has not yet become a common policy and required competent agencies to plan and advise PIM development measures to the Government on the basis of binding investment with PIM implementation.

- Current policies are not synchronous and suitable with reality or difficult to enforce. There is no a specific legal document guiding the establishment and activities of PIM organizations. Although Ordinance on exploitation and protection of irrigation systems and Decree No 143/2003/ND-CP dated on 28/11/2003 guiding the implementation of some articles of this Ordinance were issued, they are not concretized particularly the participation of farmers in irrigation system management, irrigation management transfer and financial policies for PIM model. Therefore, this fails to create the self-reliance for PIM model.

2.2.2. Awareness and leadership

- Local authorities at different levels especially commune have not yet determined their responsibilities in the implementation of State management function of irrigation systems (monitoring and supervision of water user organizations) and followed the democratic regulations in water sector.

- In some places, PIM program were carried out by supported projects. When the projects finished, the PIM models disappeared. Local authorities at different level have not paid much attention to this issue, therefore, PIM models have normally failed to achieve expected outcomes.

- So far, many cadres even key persons have misunderstood about PIM. This is a big obstacle for PIM progress.

- Farmers, in many places, have not yet become fully aware their responsibilities in operation and maintenance of transferred irrigation structures, which should have been considered as their own assets. They also have not paid full water fees because they have not understood sufficiently current policies and requirements for O&M.

2.2.3. Personnel

- Capacity and knowledge of management staff and workers of IDMCs have failed to meet the requirement of industrialization and modernization of irrigation scheme management. Many places lack of management staff especially in mountainous and highland areas.

- Organization of IDMCs has not yet been effective. In some places, these IDMCs fail to sign water use contract with water users. They also do not actively support for technical aspects for water user organizations and farmers as needed.

2.2.4. Investment

- Because of constraint budget, irrigation schemes have been not invested synchronously in the whole system. Necessary management equipment is also insufficient.

- Projects in water resources especially those funded by foreign sources have focused on training but its content is not quite suitable with requirement.

3. ORIENTATION FOR PIM DEVELOPMENT

3.1. Basis for implementation

Strengthening water user organizations is an urgent and pressing requirement and a decisive factor for improving the efficiency of the country's irrigation and drainage systems.

In fact, Vietnam has sound and clear policies for speeding up the development of PIM.Currently, there are a number of clear and specific policies on PIM. Resolution No 6 dated on October 11, 1998 by Political Bureau on agriculture and rural development issues refers to policies on encouraging the participation of farmers in investment and irrigation system management. Resolution No 15 dated on March 18, 2002 by Central Party Committee at the fifth meeting, ninth term on speeding up industrialization and modernization of the agriculture and rural areas in 2001-2010 periods emphasizes the development of water user organizations and water management of farmers. The Ordinance on exploitation and protection of irrigation systems (No 32/2001/PL-UBTVQH10 dated on April 4, 2001), Decree No 143/ND-CP dated on November 28, 2003 by the Government regulating the enforcement of this Ordinance, Decision No 58/2002/QD-TTg dated on 26/4/2002 by Prime Minister on issuing classification indicators for State-owned enterprises; Circular no 06/1998/TT-BNN-TCCB dated on September 3, 1998 on guidelines for organization and operation of IDMC; Document No 1959/BNN-QLN dated on May 12, 1998 on strengthening grass-root water user organizations, all state that each irrigation structures should be managed by a specific organization especially structures within a village or commune. Relevant agencies and authorities at different levels should concretize the policies mentioned above.

3.2. Objectives:

On the basis of irrigation system modernization and strategy on water resources development, it is necessary to further strengthen Participatory Irrigation Management to ensure that the entire irrigation system from headworks to on-farm structures is managed efficiently taking into account the requirements of the local irrigators and other system users. This is necessary to achieve that by the year 2010, the utmost capability on exploitation of the irrigation systems is reached (at 75-80% of the designed capacity). The following are important ones among pre-requisites to meet the 2010 goals:

- Transfer local irrigation structures to farmers under appropriate irrigation management transfer (IMT) models in conjunction with PIM to meet water requirement for production, reducing management costs, improving water fee collection, generating sufficient water fee for IDMCs, ensuring fund for O&M , enhancing effectiveness of these systems.

- Bring about a significant change in the role of farmers by raising their responsibility in scheme management thereby reducing State's subsidy for O&M.

3.3. Main policies and measures for PIM development

3.3.1. Policies on investment:

Investment policies should clarify responsibilities of both the State and people to ensure synchronously investment, improved infrastructures including new construction, rehabilitation or up-gradation of irrigation schemes.

Investment on structures should be carried out together with establishment of management organizations including PIM. Implementation of priority investment projects including those funded by loans from external funding agencies should only be fund- disbursed after appropriate management organizations ensuring satisfactory farmer participation (institutional arrangements) is set up. This policy will create a close tie between the State and people, between the employers within executive agencies and beneficiaries and should be an important and first criterion for investment determination.

It is also necessary to pay attention to investments in management equipment ensuring better management conditions of irrigation systems. Investment policy is also required to ensure the feasibility in encouraging farmers to participate in investment and system management. At the same time, the timely issuance of policies on O&M needs to be undertaken in order to make sure the safe operation of works and to avoid the deterioration of structures.

3.3.2. Management organization

Local authorities should work out institutional arrangements for   irrigation and drainage systems at different levels: for commune or inter-commune scale structures, it should include water user organizations, preferably based on hydraulic boundaries, with full legal eligibility and named unconditionally. This will be organization with financial autonomy.

In large-scale irrigation and drainage systems, headwork’s, main canals and complex structures will continue to be managed by IDMCs. Branch canals and structures on canals within commune or inter-communes will be transferred to water user organizations after having established the appropriate conditions. Decentralization principles will be applied for the strengthening of IDMCs. Regulations for system transfer from IDMCs to water users organizations will be required to ensure improved system performance after the transfer.

3.3.3. Finance policy

Ministry of Finance and Ministry of Agriculture and Rural Development should together promulgate clear financial policies related to water fees and state subsidies for investments in system improvement and modernizations and O&M to            ensure the sustainability and autonomy for both IDMCs and water user organizations.

People's Committee of provinces are responsible for concretizing financial policies (water fees, subsidies) within their area in view of financial autonomy of IDMCs and water user organizations as appropriate.

3.3.4. Roles of different authorities

Local authorities (province, district, and commune) should consider PIM implementation as one of their responsibilities towards the farmers. Therefore, they should concentrate on the appropriate exercise on state management function for enabling the water user organizations to operate effectively and autonomously. This will bring favorable conditions for these organizations and will avoid unnecessary interventions into water user organization's activities by the local authorities... In the short-term, it is required to develop a specific programs for operationalizing PIM in the different areas, at the same time, to promote consolidation and further development of the respective IDMCs in a sustainable manner.

3.3.5. Strengthening staff capacity and role of VNPIM

Water Resources Department under MARD prepares a detailed action plan to further operationalize PIM through promotional campaign and activities to raise awareness of staff among concerned organizations, provincial and local authorities, IDMCs about PIM and its implementation. This should be carried out in the form of participating in the " PIM club", meetings, trainings, dialogues, newspaper articles, radio, television as regular activities. This will ensure that all persons involved in system management have a better understanding of the role and contribution of PIM towards improving the performance of irrigation and drainage systems.

The Vietnam Network on Participatory Irrigation Management (VNPIM) consists of State-management agencies, research and consultantcy units, enterprises and social organizations, etc at Central and local level. Strengthening capacity for VNPIM should be supported by local funds supplemented by donor-assisted technical assistances; expanding

its scope and activities to improving capacity on editing guidelines on PIM. VNPIM carries out activities of experience exchange, organizes PIM imlementation, offers PIM effective advisory lobby in investment projects, undertakes coordinating and training activities; incorporates with internaltional organizations, which involved in PIM .

3.3.6. Organization of implementing, monitoring and evaluating a. Task assignment

The Ministry of Agriculture and Rural Development with its State management functions on the management and exploitation of irrigation systems, is to lead, monitor and examine PIM implementation strategy, issue policies on PIM and IMT to speed up PIM progress.

The concerned functional units within the Ministry will be assigned to coordinate with the provinces in supervising, monitoring and evaluating the implementation of the strategy and road map upon their promulgation.

Department of Water Resources: This Department has been designated with the responsibility to assist the MARD to work with the concerned organizations within MARD and Ministry of Planning and Investment (MPI), Ministry of Finance (MOF) in proposing, compiling and issuing the related policies on PIM in line with the investment plans.

During the appraisal process for investment projects, the Department instructs local authorities to incorporate PIM development and operationalization under investment projects for irrigation and drainage systems. It will ensure that all approved investment projects will have the required institutional arrangements for PIM development and operationalization. The Department is also responsible for the M&E of the implementation of the PIM strategy in the whole country.

VNPIM is in charge of advising to the Departments of Water Resources - MARD to exercise its State management tasks related to PIM such as instruction, organization and monitoring PIM implementation, advising in training activities, compiling documents and policies on PIM and IMT, and summarizing experiences about PIM and IMT. VNPIM will also help provincial and local authorities and organizations to deal with difficulties and obstacles during PIM implementation. VNPIM will also assist Department of Water Resources to review proposals of all new investment projects in terms of O&M arrangements.

Related Agencies, Related agencies under MARD such as Department of Legislation, Vietnam Institute for Water Resources Research, the Central Project Office and the Institute of Water Resources Planning will coordinate with the Departments of Water Resources and VNPIM in assisting the provincial and local authorities to implement the PIM strategy.

Provincial People's Committee will instruct the provincial sectors and organizations to coordinate in the implementation of PIM with respect to the PIM strategy and road map and further guidelines of MARD; produce relevant policies with concordance to the specific local conditions and functions of different sectors; ensure the implementation of their commitments to PIM under investments projects in their respective provinces. .

Irrigation and Drainage Management Companies:

The capacity of the IDMCs will be strengthened so that they can provide technical and managerial services to water user organizations on the basis of the approved PIM policies. The IDMCs should actively prepare PIM action plan for region under its management responsibility. This IDMC PIM action plan will be submitted to the DARD for further finalization of the provincial PIM action plan which will then be endorsed and approved by the PPC.

b. Monitoring and Evaluation (M&E):

The objective of the M&E of the implementation of the PIM strategy is to assist the provincial and local organizations and authorities in correctly adopting the strategy, obtaining feedback about the operationalization of the strategy and to assess the outcomes such as improving farmers' responsibility in system management, increasing overall system efficiency and improving agriculture production and farmer’s income.

Indicators for M&E, to effectively monitor and evaluate the implementation of the PIM strategy, MARD needs to establish a set of M&E indicators assisting local authorities and relevant agencies in M&E.

- Indicators for result evaluation:

+ Number and and effectiveness of PIM organizations

+ The level of farmers' participation in the management and exploitation of hydraulic works through planning, design, construction and O&M stages.

+ Efficiency of irrigation and drainage systems.

+ Efficiency of PIM policies and enforcement;

+ Agriculture benefits and sustainability gained from PIM .

+ Saved quantity of water and energy

+ Poverty reduction results.

- Indicators for evaluating influence of the strategy on the different stakeholders:

+ Changes of awareness of cadres and farmers

+ Impact of PIM programs on production and life of farmers.

+ Poverty reduction level.

+ Gender mainstreaming

Responsibilities for Monitoring and Evaluation, the Ministry of Agriculture and Rural Development in coordination with concerned Ministries and Sectors, international organizations takes the main responsibility in the monitoring and evaluation for the implementation of the PIM strategy and road map. MARD assigns the responsible for M&E to the Peoples’ Committees of several levels, the DARDs together with the PIM network from Central to localities. An information system for monitoring and evaluation could be established as appropriate.

3.3.7 Mobilization and implementing plan

It is recognized that the PIM preparedness should be a step ahead established in orderto facilitate the farmers’ effective participation in all project phases from planning, design to O&M. It is not recommended to complete all construction works then proceed to establishment of PIM organization.

1. Large and medium-scale irrigation systems: they cover large areas (districts or provinces). They are usually invested or rehabilitated by loans from external financiers. Up to now, little progress has been made in operationalizing PIM and IMT under these systems. Therefore, provinces should concentrate on establishing water user organizations responsible for management of commune or inter-commune canals.

For investment projects of which project preparation has not yet started, initiating the establishment of WUOs are to become part of the project preparation and design.

2. Small-scale irrigation systems: These include small-scale irrigation systems, structures or structure group covering areas of districts or inter-communes. These projects should establish and implement PIM plans as soon as possible.

3. Separate irrigation schemes (outside irrigation systems managed by IDMCs): These are small-scale structures serving a village or commune and managed by Cooperatives, Commune People's Committee, or private. These schemes are rehabilitated by various fund sources from State budget, farmer contribution or NGOs. Local authorities should evaluate, examine and implement institutional arrangements, propose investment supports, training plan to improve capacity for farmers toward the realization of suitable PIM models.

4. PIM ROADMAP and IMPLEMENTION SCHEDULE

The "Roadmap" which is enclosed as Annex is an integral part of this PIM Strategy. The PIM Strategy covers the period up to 2015; the "Roadmap" sets out actions mainly for the immediate phase of 2004 - 2008. While the "Roadmap" lists detailed activities, the major actions of the overall Strategy are listed below.

2004 – 2005 phase

Ministry of Agriculture and Rural Development will promulgate a circular on guiding the organization, strengthening and developing water user organizations.

MARD officially informs of the PIM strategy and road map; issues regulations on the devolution of management and exploitation of irrigation systems, together with guidelines of M&E for the implementation results.

The DARDs prepare the provincial plans for devolution of management and exploitation of irrigation systems which will then be approved by the respective PPCs.

2005 - 2008 phase

Continue undertaking PIM models in several irrigation systems including the Phuoc Hoa, Second Red River Projects and VWRAP, summarizing experience to improve and progress PIM comprehensively in large-scale irrigation systems. By 2008, management organizations of irrigation schemes would be financially autonomous for O&M.

Promote PIM operationalization for water resources loan projects

Evaluating the results of this phase.

2008 - 2015 phase

Continue and expand at higher level decentralizing and diversifying management of State-owned irrigation systems by different forms of transfer, contract, hire or equalization.

Evaluate realization of PIM road map and improved policies in support of PIM operationalization to achieve the proposed targets and proceed to the next phase.

5. MEASURES AND ORGANIZATION FOR IMPLEMENTATION

5.1. MARD will soon officially inform of the PIM strategy and road map to the concerned Ministries, Provincial Authorities and Mass Organizations including the Farmers’ Union and Women’ Union.

5.2. There will be an unified directive instruction through Central to localities (province, district, commune). At MARD, the steering team is chaired by the Vice Minister who takes the role of overall supervisor with members composed of leaders of concerned sectoral organizations. The Department of Water Resources is the standing office in support of the instruction, performance review and proposing specific measures to ensure the correct implementation of the road map plan.

At provinces, each province will have a steering team chaired by a Vice Chairperson of the respective PPC with membership by leaders of DPCs, concerned provincial sectors. The DARD takes the role of standing office to assist the province in leading the implementation of PIM action plan; regular review and withdrawal of experience will be conducted every 6 months.

5.3 Wide information dissemination activities will be carried out through various public media.

5.4 The concerned international organizations will be officially informed by MARD of the PIM strategy and road map in view of mutual commitment.

5.5 All designated organizations will establish specific implementation plans which is built upon the strategy and road map.

ANNEX

ROADMAP FOR DEVELOPMENT OF PARTICIPATORY IRRIGATION MANAGEMENT (PIM) IN VIETNAM

The Road Map is an integral part of the PIM Development Strategy in Viet Nam.

The Road Map was suggested by the Regional Workshop on PIM – Pathways for Progress in Viet Nam co-organized and sponsored by MARD, ADB, DANIDA, INPIM and WB in Ha Long, 30 March – 2 April 2004 and further commented by the Follow-up Workshop held in Hanoi, 25 June 2004.

The Road Map was finalized, endorsed and approved by the Ministry of Agriculture and Rural Development and put forward for implementation.

The roadmap aims to achieving the following objectives:

1. Continue to adopt PIM models in accordance with specific conditions.

2. Revise and finalize policies on PIM or those related to PIM in order to establish a legal framework for PIM implementation in the whole country.

3. Decentralization, collaboration and commitment from relevant stakeholders to implement and develop PIM under the following action plan:

ABRIVIATIONS