Xayaboury promotes private investment in irrigation expansion

Xayaboury authorities have imposed a new policy, which allows private firms to invest in construction and commercial operation of the irrigation network as demand for water for farming in the province grows.
The provincial governor, Mr Phongsavanh Sithavong on June 1 signed a governor’s decision, which gives the green light for individuals and private firms to build and operate commercial irrigation schemes as part of efforts to boost farmers’ production.
Water usage for agriculture in Xayaboury has seen a rapid increase in recent years as the province transforms itself into a major supplier of farming produce. It currently grows rice and vegetables for export to Thailand and China.
Provincial authorities are encouraging private investment in irrigation construction and expansion alongside public funding, which is now very limited, to ensure sufficient supplies of water.
According to the governor’s decision, which is accessible at the official National Gazette website, the expansion policy would not lead to rapid increases in water charges as provincial authorities are still in charge of setting irrigation fees.
This means that only private firms, which have committed to charging water fees following the provincial regulations, will be allowed to invest and operate commercial irrigation schemes, the governor’s decision highlights.
Article 12 of the provincial governor’s decision outlines the water fees which farmers have to pay with private commercial operators having no power to set rates without permission from authorities.
In addition to promoting private investment in the irrigation network, Xayaboury has established a fund aimed at constructing and expanding irrigation in the province.
Money for the irrigation development fund will be derived from water supply charges, contributions from individuals, donors, private sector and interest from deposits at commercial banks, according to the governor’s decision.
Xayaboury is one of the key provinces which has prioritised agricultural development. Over past years, numerous provinces have established policies to encourage the development of commercial agriculture and boost local livelihoods.
Last month, provincial authorities established a sustainable agriculture development fund backed by contributions from farmer members. The fund will be used to improve capacity building among farmers to boost crop production for domestic and overseas markets.

By Times Reporters
(Latest Update July 21, 2020)