LA CONTIGÜIDAD ENTRE LA HABANA Y ATENAS

Origins and Involvement of NGOs: Expansion of NGO activities gained momentum since 1970, as an aftermath of the devastating cyclone and the liberation war in 1971. Recently, the vacuum created by the inability of the Government, Local Government Institutions of the market to deliver goods and services have been filled by the NGOs.

Many NGOs have an interest in water supply and sanitation with installation charges varying form nil to full recovery. In contrast to water supply, NGOs have generally had unhappy experiences with the management and operation of DTWs, but much more success with STW and low lift pumps (LLPs).

Review of literature shows ample evidence that local efforts were not always organized by local government bodies like, Union/Thana Parishads, but also by spontaneous self-help private groups. Involvement of NGOs in water development is a relatively recent phenomenon that started vigorously with formation of the Labour Contracting Society (LCS), under Early Implementation Project (EIP) and later on stretched to Embankment Maintenance Group (EMG), Canal Maintenance Group (CMG) under Systems Rehabilitation Project (SRP) and Command Area Development (CAD) projects of the Asian Development Bank (ADB). Various studies show, however, that the expertise of the NGOs is limited to formation of groups and working as their voice, contrary to the claim of championing in totality the cause of the people and their participation from the grassroots. Apparently, the NGO involvement was more of a donor requirement rather than demand driven.

Four NGOs, Proshika, Grameen Krishi Foundation, BRAC and Gono Kalyan Trust, signed a joint agreement for the transfer of DTWs from BADC/BWDB in 1988 as follows:

• Proshika contracted 200 DTWs and initiated operations of 41, but currently only 9 are fully operational.

• Grameen Krishi Foundation originally obtained 800 DTWs (565 from BADC and 235 from BWDB). 350 of BADC pumps are currently operating primarily with the sharecroppers. However, cost recovery of BWDB's pumps was not satisfactory. Therefore, the pumps leased from BWDB were returned in 1991.8

• BRAC initiated its operation with 800 DTWs but due to heavy financial loses closed down the operation in 1996.

• Gono Kalyan Trust is still continuing its DTW operation with very small number of pumps.

• Proshika provided credit and support services for the purchase of 3000 STWs and 1000 LLPs in 46 Upazilas. Loan repayment had been excellent (capital to be paid off over two years and O&M loans over six months). Proshika will continue to provide credit to groups demonstrating a need for STWs and LLPs.

8 _{Though the Government decision was to hand over 959 DTWs to Grameen Bank, at their First attempt in 1989 they took only} 231DTWs. But as their system of water rate collection was not accepted by the beneficiaries who have been getting Irrigation Water Free or with minor charges, on public demand in 1992 Government decided on taking back 726 DTWs. Two were returned to BRDB and the rest were handed back to BWDB for operation and maintenance. Since then BWDB is operating 986 DTWs ( 726 new+259 old +1 experimental): “Proceedings of the National Seminar on Implementation of Pilot Cost Recovery Programme in KIP (Ichamati Unit)”

Other NGOs and CBAs demonstrated little interest in irrigation water management, especially in the project areas. Despite running successful micro credit programs, NGOs, CBOs and other private organizations limited their program to certain categories only, which did not include management of irrigation water and the components of water management. Community participation in this respect was also not very encouraging, though the communities benefited by the irrigation projects stated that with proper technical assistance, training, and assistance in group formation, the community was ready to take over Irrigation Management Transfer (IMT). However, there had been no substantial growth as well as development in the private sector for management of this sector despite existence of a strong demand for irrigation water.9

NGOs’ relations with WARPO

Learning from the experience of FAP, WARPO has actively sought co-operation with the NGO community. With full support of the Association of Development Agencies of Bangladesh (ADAB) and the Coalition of Environmental NGOs, WARPO has engaged 13 NGOs to play an active part in developing and implementing a People's Participation and Consultation Process (PPCP) to support national level planning of water resources management. NGOs have indicated that this is a welcome development in the planning process.

Co-operatives and the Water Sector The Co-operative Movement

The Bangladesh Rural Development Board (BRDB) provides support to the national co-operative movement of 63,000 farmer societies (KSS) which are grouped at Upazila level into Upazila Central Co- operative Associations (UCCAs).

BRDB consists of a DG and Additional DG and six Directorates responsible for the following services: Field Services; Planning; Administration; Finance; and Training. The co-operatives are involved in a range of services of importance to farmers as well as irrigation services.

Irrigation and Water Supply

The Government decided to transfer DTWs, STWs and LLPs installed by BADC to farmer's co- operatives as follows:

• Sonali Bank (a nationalised commercial bank) buys the TWs from BADC and sells them on to the Upazila Central Co-operative Association (UCCA);

• UCCA passes wells on to KSS who undertake to repay UCCA; • KSS repays the UCCA which in turn repays Sonali Bank;

9 _{“The water users’ organization consists of water users themselves, who have direct interest in water management activities.} The water users will put in best efforts to reap meaningful benefits out of the system built for them and try to sustain it in their own interest. Therefore, the apprehension of forming CBA in such socio-economic project hardly exists if development takes place through process on longer term. Close monitoring on the development of users organization should be made to avoid exploiting the situation by any vested group. The organization to grow needs time.” Proceedings of the national seminar on implementation of pilot cost recovery programme in KIP (Ichamati Unit): 1994, Dhaka.

• BRDB stands as guarantor for all transactions.

Repayment of the loans has been very poor except for the hand-operated pumps (38 percent of the loan on DTWs and 23 percent of STW loans have been repaid). The main reason for poor repayment appears to be the past tendency of politicians to forgive KSS debts. This provides a clear signal to the whole co- operative movement—if repayments are delayed, Government will cancel the debts in due course. A culture of default pervades the irrigation sector and it will take much to restore lender confidence.

Out of the total tubewells supplied, 8.7 percent of DTW and 7.2 percent of STW have fully been paid.Of the total invested amount, 38 percent has been repaid. Despite discouraging experiences, the Japanese aid is apparently planning to support a further DTW program through the co-operative movement.

Possible Alternatives to Cooperatives

There is an increasing need to explore alternatives to co-operatives as the recipient organisation with the increased emphasis on ownership and management of water by the communities. Currently, co- operatives are the community-based organisations that are recognised by law and authorised to take over publicly financed infrastructure and securing lines of credit. Possible alternatives to co-operatives should be explored. It could be either community organisations of private companies for developing, operating and/ or maintaining local water resources to the surrounding communities.

Private Sector

Private sector activities in modern irrigation date back to the late 1970s when private operation and sales of mechanised irrigation equipment were first allowed. Successive actions by GoB, including withdrawal of BADC from commercial activities in 1993, fuelled rapid expansion of the private irrigation market. By 1995-96, over 500,000 wells had been installed and annual turnover of the minor irrigation market had reached over Tk.1500 million (US $26 million).

The private sector is closely involved in all aspects of water resources development and management such as consultants involved in survey, planning, design and supervision of works; contractors in construction and in some cases, financing of works; equipment importers and suppliers; distribution and sales organisation; service providers, including maintenance of equipment and training and credit agencies. Each play a part in the sector as a whole and during the last 20 years expanded significantly, which resulted in a major shift away from centrally run public institutions. This trend is also supported by the Government policy.

Minor Irrigation

Private sector activities in minor irrigation started in 1970s with the liberalisation of STW and LLP equipment sales. Successive actions by the GoB and withdrawal of BADC from all commercial activities in minor irrigation in 1993 created added incentives for the private sector, which led to rapid growth especially in STW.

The massive response of the private sector is commendable but one should also keep in mind that this sector comprised of small businesses working independently of each other and providing simple and

low quality products. Credit services from the formal sector are widely recognised as having been ineffective in meeting private sector needs, a gap that is yet to be filled. While at village level there is some degree of co-operation between dealers/suppliers, and mechanics etc, there is a lack of distribution network such as a wholesale dealer dealing with the central market. Usually, the suppliers have very little technical knowledge of the equipment and irrigation in general. Two main manufacturing centres of irrigation pumps are Dhaka and Bogra.

Manufacturing of Irrigation Pumps

STWs and LLPs in Bangladesh are usually produced in a multitude of small foundries. The products are usually of low quality. Imported motors and engines poorly match the pumps and pumping requirements. However, due to overall high profitability, poor quality of the equipment has not deterred the users, and the growth rate of manufacturing was high. As irrigation and rural water supplies continue to expand, there will be increased demand for new and improved products.

Interaction between Public and Private Sectors

The Private sector was dominated by a relatively small number of importers, suppliers, contractors etc., when BADC played a predominant role in minor irrigation. Since liberalisation though, the number of importers remained small, but the numbers of suppliers and contractors have increased significantly.

Importance of maintaining contact with the private sector and exchange of information is given due importance in the New Agricultural Extension Policy (NAEP). This new policy has recognised the importance of representation of the private sector at national, regional, District and Upazila level on its DAE extension committees.

Very few trade organisations are active in the water sector and that makes it difficult for WARPO to interact with the private sector at a central level.

With the growth of the market and improved awareness, recently, several changes could be noticed. Various products (e.g. plastic pipes, pumps etc) are being manufactured now locally by larger producers. These large producers are setting up sales networks. Interest in manufacturing submersible pumps, by the large producers is also growing with the expansion of rural electrification.