Evaluation of irrigation projects and water resource management: a methodological proposal

Traditionally, water policy in Spain, and particularly as regards irrigation, has paid little attention to the analysis of efficiency in management aspects. This reality is in juxtaposition with the growing difficulties observed in satisfying water demand and with social demands in terms of the efficient use of public money. In this paper a methodology is proposed, which could be particularly useful for the economic–financial evaluation of public irrigation works. Both public and private cash flows generated by investments are considered and updated using the net current value criterion. After formulation of the methodological proposal, a practical application of it is made using the irrigatable areas of Viar, Cacín and Vegas Bajas, located in the river Guadalquivir basin. This method could be highly useful to aid decision-making in public and private investments in terms of water resource management, and to estimate productivity and elasticity in the demand for water in farming.