Senate to privatize irrigation system

Jamaica's senate has approved privatization of the country's irrigation system, promoting user participation, the Jamaica Observer reported. The Senate will give farmers and other system users the responsibility of operating and managing these systems, while rates charged will be gradually increased over the next five years, the paper added. The bill will include Water Users Associations (WUA) as legal entities in the management and operation of new or repaired systems. It also intends to establish WUA's in some existing irrigation systems. Irrigation rates were last increased in September 2000 and current rates are not sufficient to cover the daily operational cost for irrigation, and must be increased to reflect the real maintenance costs to be phased in over a five-year period, the paper added. Some 51 projects in the plan had internal return rates above 10% with positive cost-benefit ratios and will increase the Caribbean island's present irrigation coverage of 25,000ha by 60% to benefit some 6,900 local families, the paper quoted Senator AJ Nicholson as saying. The projects will generate above US$55mn in annual income and increase total agricultural production by US$133mn.