Feasibility Study of the Kisegese Irrigation Scheme

The project is part of the Technical Assistance to Support the Development of Irrigation and Rural Roads Infrastructure Project (IRRIP2), funded by the United States Agency for International Development (USAID). The feasibility study for the Kisegese Irrigation Scheme was conducted by CDM Smith, a consulting firm, in May 2016. The study analyzed three development scenarios for the Kisegese Irrigation Scheme: a reference case without any project implementation, an improved rainfed scenario, and an irrigation scenario. The irrigation scenario involves the construction of a system of canals, flood protection, land leveling, drainage, and improved roads, as well as the use of stored or diverted river water. The study compared the economic benefits of these scenarios, using the economic internal rate of return (EIRR) as the indicator to judge net economic benefits. The study found that the irrigation scenario (Scenario 3) delivers a positive family income from agriculture, with an average net margin of approximately US$ 410/ha compared to Scenario 1. Even after meeting all the schemes' recurrent costs, net margins increase by approximately US$ 630/ha compared to Scenario 1. However, the study also found that a 3-ha farm would be needed to cover all the basic needs poverty line, while 36 ha would be needed to purchase a Massey Ferguson 375 tractor from a year's net margin. The study used a 32-year evaluation period, including a 7-year construction period and a 25-year operational period. The economic analysis used the domestic price system with the Tanzanian shilling (Tsh) as the unit of account, and the price date was quarter 3 (Q3) of 2014. The study also assumed that the costs of extension services are included in the economic analysis but not in the farm-level financial analysis. The study's results show that the irrigation scenario has a higher EIRR compared to the improved rainfed scenario, indicating that the irrigation scenario is more economically beneficial. However, the study also notes that the precondition for successful implementation of the irrigation scenario is upgraded road access down the entire valley and electrification. The Kisegese Irrigation Scheme is a significant development project that has the potential to improve the livelihoods of farmers in the Kilombero district of Morogoro region, Tanzania. The study's findings provide valuable insights into the economic benefits of the irrigation scenario and highlight the importance of considering the preconditions for successful implementation of the project.