Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia

The government of Ethiopia has invested in groundwater development for smallholder irrigation in the Raya Valley and Kobo Valley, north-eastern Ethiopia, where the hydrogeological potential is large but not fully developed. A cost-benefit analysis shows that investment in deep groundwater irrigation...

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Main Authors: Gebregziabher, Gebrehaweria, Villholth, Karen G., Hanjra, Munir A., Yirga, M., Namara, R. E.
Format: Book Chapter
Language:Inglés
Published: 2023
Subjects:
Online Access:https://hdl.handle.net/10568/130956
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author Gebregziabher, Gebrehaweria
Villholth, Karen G.
Hanjra, Munir A.
Yirga, M.
Namara, R. E.
author_browse Gebregziabher, Gebrehaweria
Hanjra, Munir A.
Namara, R. E.
Villholth, Karen G.
Yirga, M.
author_facet Gebregziabher, Gebrehaweria
Villholth, Karen G.
Hanjra, Munir A.
Yirga, M.
Namara, R. E.
author_sort Gebregziabher, Gebrehaweria
collection Repository of Agricultural Research Outputs (CGSpace)
description The government of Ethiopia has invested in groundwater development for smallholder irrigation in the Raya Valley and Kobo Valley, north-eastern Ethiopia, where the hydrogeological potential is large but not fully developed. A cost-benefit analysis shows that investment in deep groundwater irrigation development is viable at a 9.5% discount rate in 75% of the wells. Assuming full cost recovery of capital investment, the annual payment rates (annuity) that irrigation users should pay over the wells’ service life (25 years) were estimated. It is recommended that future investment be based on cost sharing rather than full cost recovery to facilitate uptake and address financial realities.
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spelling CGSpace1309562023-07-27T19:27:37Z Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia Gebregziabher, Gebrehaweria Villholth, Karen G. Hanjra, Munir A. Yirga, M. Namara, R. E. groundwater irrigation cost benefit analysis cost sharing smallholders wells investment income financing cost recovery households The government of Ethiopia has invested in groundwater development for smallholder irrigation in the Raya Valley and Kobo Valley, north-eastern Ethiopia, where the hydrogeological potential is large but not fully developed. A cost-benefit analysis shows that investment in deep groundwater irrigation development is viable at a 9.5% discount rate in 75% of the wells. Assuming full cost recovery of capital investment, the annual payment rates (annuity) that irrigation users should pay over the wells’ service life (25 years) were estimated. It is recommended that future investment be based on cost sharing rather than full cost recovery to facilitate uptake and address financial realities. 2023-05-08 2023-06-30T18:43:52Z 2023-06-30T18:43:52Z Book Chapter https://hdl.handle.net/10568/130956 en Limited Access Gebregziabher, Gebrehaweria; Villholth, Karen G.; Hanjra, Munir A.; Yirga, M.; Namara, R. E. 2023. Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia. In Pavelic, Paul; Villholth, K. G.; Verma, Shilp. (Eds.). Sustainable groundwater development for improved livelihoods in Sub-Saharan Africa. Abingdon, Oxon, UK: Routledge. pp.148-159. (Routledge Special Issues on Water Policy and Governance)
spellingShingle groundwater irrigation
cost benefit analysis
cost sharing
smallholders
wells
investment
income
financing
cost recovery
households
Gebregziabher, Gebrehaweria
Villholth, Karen G.
Hanjra, Munir A.
Yirga, M.
Namara, R. E.
Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title_full Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title_fullStr Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title_full_unstemmed Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title_short Cost-benefit analysis and ideas for cost sharing of groundwater irrigation: evidence from north-eastern Ethiopia
title_sort cost benefit analysis and ideas for cost sharing of groundwater irrigation evidence from north eastern ethiopia
topic groundwater irrigation
cost benefit analysis
cost sharing
smallholders
wells
investment
income
financing
cost recovery
households
url https://hdl.handle.net/10568/130956
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AT hanjramunira costbenefitanalysisandideasforcostsharingofgroundwaterirrigationevidencefromnortheasternethiopia
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