Determination of the Irrigation Water Supply Services Cost

The article summarizes and analyzes experience in irrigation water charges fixation. Many countries of the world with developed irrigation systems face problems of lack or inadequacy of financial resources to maintain these systems in an efficient state [1]. There is the necessity to find effective financial and organizational mechanisms to address these problems. The purpose of this article is to summarize and analyse the experience of setting fees for the supply of water for irrigation in various socio-economic conditions and to find out possibilities of improving systems of payment collection for the provision of irrigation services and in particular, for irrigation water supply. The analysis is based on a wide range of conditions specific for both developing and developed countries. In addition, the article attempts to assess the experience of using the amount of payment for irrigation water as an incentive for cost recovery to achieve financial sustainability and demand management for the efficient use of water resources. Quotas, water markets, subsidies, as well as information/educational problems have been considered as incentives of water resources demand management. We have considered special features of the tariffs formation in the Central Asia countries. The study has demonstrated that the two-stake tariff implementation will enable to compensate the irrigation services expenses at the level acceptable for water users in case of cultivation of crops generating an adequate income for the tariff's financing.