Innovation field

In Bangladesh, particularly in the division of Rajshahi, the use of prepaid meters and cards is strongly encouraged by the Ministry of Agriculture through the Barind Multipurpose Development Authority (BMDA).

Summary

It is a computerised, automatic irrigation charge collection system. This technology allows farmers to access irrigation water on demand and within their means. Prepaid pumping systems are particularly used for groundwater abstraction via deep collective boreholes, but also on collective motor pump systems drawing directly from canals (khals).

Le système de compteurs prépayés se compose de deux parties :

• Prepaid meters and smart cards, and  
• The database server and networking system.

Le compteur prépayé est également une unité de mesure de l’énergie qui fonctionne selon différents modes : (i) mode de consommation d’énergie – il déduira de l’argent en fonction de la consommation d’énergie, (ii) mode de consommation de temps – il déduira de l’argent en fonction de la consommation de temps et (iii) capacité de débit de l’unité de pompage.

Emergence of the innovation

The irrigation charge prepayment system was first introduced by the Barind Multipurpose Development Authority (BMDA) in Bangladesh, which is one of the various organisations in Bangladesh in charge of irrigation development and management, like the Bangladesh Water Development Board (BWDB) and the Bangladesh Agricultural Development Corporation (BADC).

La BMDA a été créé le 15 janvier 1992. Depuis sa création, la BMDA s’est impliquée dans l’exploitation des eaux de surface, le pompage des eaux souterraines par DTW (Deep Tube Well) à des fins d’irrigation, l’aménagement de routes rurales, de tunnel, de ponts, la construction de barrages, le curage de Khal/khari/étang et la plantation à grande échelle, etc. La BMDA est la première organisation à avoir introduit le système de compteurs prépayés pour les lignes électriques triphasées. Le système de compteurs prépayés, qui s’étend actuellement sur 124 Upazilas de 16 districts, est géré par la BMDA. Les réparations du système, par exemple pour les 16 072 compteurs, sont effectuées sous contrat avec une société privée (actuellement Sanakosh Associates Ltd). Le système a été fourni et installé par Wasion Group, Chine.

Setting and collecting irrigation charges is a very complicated process in most developing countries, especially in South-East Asia. The financial viability and sustainability of irrigation systems is therefore a major issue. Between 1985 and 2004, BMDA tested different systems of charging for agricultural water. These included an area-based charge for irrigated plots and irrigation charge coupons of different monetary values for the supply of irrigation water, but none of these systems was truly satisfactory. Finally, in 2005, some BMDA engineers had long brainstorming sessions on how to address the problem. They made a commitment to the Ministry of Agriculture that the Authority would make the irrigation equipment operate on the basis of a sustainable, self-financed model. Self-financing an irrigation system means that the income from the collection of charges must meet the total operation and maintenance (O&M) costs. These costs include O&M expenditure, electricity bills, the replacement of irrigation pumping units, the salaries of all technical and non-technical staff and the retirement contributions of all manpower employed.

Un groupe d’une dizaine de personnes, composé de techniciens et d’experts en gestion de l’irrigation, a été constitué pour proposer et définir les modalités d’un système de redevance durable. Les avantages et inconvénients des différents systèmes possibles ont été analysés afin d’aboutir à une décision finale en 2005. La plupart de ces penseurs, planificateurs et exécutants du système alors proposé étaient issus des zones de projet concernées. Les principaux initiateurs de la politique comprenaient le personnel suivant :

1. Dr Asaduz Zaman – Irrigation Engineer and CEO of BMDA, the main thinker and policy developer
2. Mr Khalequzzaman – Senior Mechanical Engineer, member of the think tank and of the implementing team
3. Mr Sultan Mahmud Sarker – Senior Mechanical Engineer, member of the think tank and of the implementing team
4. Mr Abu Taleb Bhuyan – Senior Irrigation Engineer and critical analyst of the different irrigation systems
5. Mr Tofazzul Sarker, IT Engineer
6. Mr Moinuddin Ahmed, Senior Electrician.

Based on this work, the prepaid meter system was launched in 2005 to solve some of the problems encountered, such as the distribution of coupons, the problem of keeping coupons, financial fraud by some farmers, etc. In the new system, a prepaid meter is installed at each deep tube well. A prepaid card is provided to each water user with his/her photo and user number. The required number of card distributors/providers is designated in each BMDA office for each upazilla. Each provider/distributor has a credit recharge unit. The suppliers/distributors recharge with credits from the BMDA upazilla office as and when required. Similarly, farmers can recharge their card with credit from the suppliers/distributors, and then take water by inserting the prepaid recharge card into the meter slot. With this system, there is no possibility of fraud. Irrigation charges and water wastage have been reduced and the financial fraud by some farmers has been stopped.

The Asian Development Bank (ADB) subsequently hired most of the staff who took part in the initial brainstorming to use their experience in other irrigation projects in the region, in Bangladesh, Nepal and India.

Solution(s) provided by the innovation

L’innovation se compose de deux éléments principaux :

Le compteur prépayé :

Each farmer has a user card with his/her photo, name and a user number provided by BMDA. Then, for each pumping station, the farmers use a prepaid meter with an LCD screen that is linked to the energy measurement meter. The consumption mode of the prepaid meters as well as the power, discharge or hourly rate, are configured using a specific card (configuration/setting card). The farmer can charge the amount of his/her choice to the card at the local BMDA offices or with a supplier/distributor. Each local office has a vending station (VS) and each supplier/distributor has a mobile vending unit (MVU) to facilitate the loading of farmers' cards.

Farmers/users go to the supplier/distributor assigned to the area and make their request (credit to be loaded on their user card). After having loaded their card, they go to the relevant pumping station and insert their card into the meter slot. The meter then starts automatically. Once the user's request has been met, s/he presses the button on the meter and removes the card. After one or two days, a BMDA manager goes to the pumping station and inserts his/her control card into the meter slot, which automatically downloads all the information about previous pumping operations. In this way, the BMDA manager is aware of all the information about the use of the pumps.

If it is necessary to change the tariff mode or tariff rate of the meter, such as hourly tariff, or power or dishcharge tariff, it is possible to change the settings using the configuration/setting card. The configuration/setting card is provided by the upazila (zonal) office of the relevant district.

For the continuous updating and control of the data collected, all VS are connected to a System Master Station (SMS) located at BMDA's head office. The head office can thus automatically get all information related to vending. The daily sales reports, weekly consumption reports, sales reports by suppliers/distributors, etc., can be generated from the SMS. In addition to the generation of reports, the overall control of VS is ensured by the SMS.

La base de données et le système de mise en réseau :

Pour stocker l’ensemble des données telles que : les informations sur l’utilisateur, les informations sur la facturation, les informations sur le compteur, etc. la BMDA utilise une unité de gestion centrale appelée SMS (System Master Station). Pour stocker toutes les données, il y a une base de données appelée SQL Server et pour charger la carte d’utilisateur ils utilisent un logiciel de base de données appelé PMS (Payment Management System). L’ordinateur principal avec l’unité de gestion est installé au siège de la BMDA. Chaque bureau upazilla contient une VS (Vending Station), qui est un ordinateur connecté à l’unité de gestion centrale (SMS) via la ligne téléphonique. La VS est utilisée pour charger ou télécharger les informations du compteur. La connexion internet permet de collecter les informations de la VS et de les envoyer vers l’unité de gestion centrale (SMS).Cette connexion se fait grâce à un réseau privé virtuel (VPN).

En bref, les solutions apportées par l’innovation sont les suivantes :

• The prepaid meter has a specific recording system. It makes it easy to read and record operating hours, total operating hours, unit consumption per hour, etc., at a glance. It is therefore very practical and technically easier to use than a post-paid energy meter.
• It is managed by a computerised system. It can therefore easily transfer data from its memory to the check/configuration card. Accountability is therefore much more transparent and precise information can be obtained.
• As this meter only works by inserting a credited prepaid card, there is no possibility of irrigation without a prepaid card.
• toute l’eau fournie est payée à l’avance ;
• il n’y a pas de possibilité de contourner le compteur ;
• le système est totalement transparent, avec des contrôles et des procédures en place pour lutter contre la fraude ;
• Les gens ne peuvent pas contraindre l’opérateur à fournir de l’eau gratuitement ;
• Farmers can no longer be exploited by land owners who could control the wells.
• As it is possible to control the prepaid meter by checking the data recorded, close monitoring is possible.
• As this system has direct control over deep tube well (DTW) irrigation pumping operations, there is no opportunity for unscrupulous landowners to exploit the poorer farmers.
• This system allows multiple DTW boreholes to be managed at the same time.
• There can be no misunderstandings or bargaining from the operator when the unit is certified by the SSAE/SAE/asst. mechanic.
• Service quality is upgraded thanks to high technology.
• The prepaid water charges are collected directly by BMDA, which supports its sustainability.

History of evolution since emergence (implementation on the field)

La viabilité financière est un aspect très important pour réaliser des systèmes d’irrigation durables, surtout dans les pays en développement. Ainsi, différents types de contraintes sont apparus au cours de la période de planification et de mise en œuvre du concept, notamment dans les phases initiales. Ces contraintes étaient de différentes natures : techniques, financières, sociales et politiques :

1. Technical - No organisations had any previous experience in implementing this system for irrigation projects, not even the bidders from India, China and Malaysia who responded to the 2005 tender for the supply and installation of the prepaid metering system. They did not have a clear idea of how to proceed, but wanted to build on their technical knowledge. They presented different scenarios and BMDA asked them to demonstrate on a deep borehole in the field. One bidder asked for more time for the demonstration and the other two (the Indian and Chinese bidders), participated in the field demonstration. The Indian company encountered some technical problems and requested an extension. The Chinese company gave a practical demonstration of pumping in a borehole through to the collection of payment. Although the Chinese experts did not speak any English, they successfully demonstrated the operationality of the system to the BMDA engineers. Today, this Chinese company still supplies, installs and maintains the system for the irrigation areas.
2. Financial - As BMDA was planning to implement this prepaid meter concept on a pilot basis, it could not submit a project proposal to the government. The CEO of BMDA decided that BMDA would proceed with the financing of the project itself. Initially, 500 boreholes were selected near head office so that any problems that arose during operation could be resolved immediately. Two upazilas were selected with approximately 450 boreholes, with 50 prepaid meters kept in stock in order to respond to any emergency situations.
3. Social - Ordinary farmers were not willing to accept this new concept and practice of pre-payment for the service coupled with a metering system. They preferred to continue with the previous practice, whether it had a positive or negative impact. However, after much group discussion, they agreed to experiment for one irrigation season. Once the irrigation season was over, they were convinced. However, the tube well operators and group managers were also very reluctant to introduce the new system as they saw it as the loss of a number of undue advantages they had gained through practices involving the manipulation of actual pump running times and irrigation charge collection. Subsequently, farmers found that they were spending less money per irrigated area. Farmers are now very careful not to use more irrigation water than they need. Irrigation efficiency has increased dramatically.
4. Political - These groups with vested interests in the various boreholes of the two upazilas convinced their political representatives that the new prepaid meter concept could cause the defeat of their MPs in the next elections. The MPs approached the BMDA to ask it not to install the prepaid meter system in their constituencies. However, the MPs reluctantly agreed to install the system for at least one season. After one irrigation season, the MPs observed that the farmers were very happy to see their irrigation expenses reduced and finally encouraged the BMDA engineers to introduce the new concept of the prepaid metering system. Today, the situation has turned around to the extent that MPs in all regions are asking why the BMDA is taking so long to install prepaid meters in newly dug boreholes. At present, one hundred percent of the boreholes are operating with a prepaid metering system.

Several thousand prepaid meters have been installed in Bangladesh and tens of thousands of prepaid cards have been distributed to the beneficiaries of the infrastructure. Analysis of the various parameters of the irrigation system shows a very good picture after the installation of the prepaid metering system and smart cards. A detailed comparative study was undertaken in the project areas with tube wells equipped, operated and managed by BMDA. The following table shows the dramatic positive changes that have taken place since the installation of the prepaid meters.

Source: Participatory Irrigation Management : Barind Model a New Sustainable Initiative ; Center for Action Research-Barind, Bangladesh / Asian Development Bank, Bangladesh, Asaduz Zaman;2019.

The use of this system allows farmers to save nearly 30% of irrigation costs (rational irrigation) and reduces water use by nearly 40% (payment by volume consumed). The implementation of this system has allowed an increase in production and a change in crop rotation, while limiting the impact of irrigation on the environment and guaranteeing a 100% recovery rate for pump managers.

Les chiffres suivants donnent une image détaillée de l’installation des compteurs prépayés par la BMDA :

• 124 upazilas managed by BMDA.
• 15 794 DTW (forages profonds) équipés avec compteurs prépayés
• 550 low lift pumps (LLPs) with prepaid meters.
• 3 DTWs, 169 LLPs and 571 dug wells connected to solar pannels.
• Où le total des 15 794 DTWs , 601 LLPs et 638 Dug wells Sont maintenant équipés

Users' opinions / elements of acceptance of the innovation

Although the coupon system, also used in Bangladesh, is now well known and reputed, it has some limitations in helping farmers to benefit directly. Now the prepaid meter allows full transparency on irrigation charges and ensures accountability through quick controls at several points. A farmer's water rights are established by recharging the prepaid card and the poorest farmers can no longer be exploited by landowners or operators, group leaders or managers.

Economic assessment of the innovation

Coûts des différents composants des compteurs à prépaiement :

Note :

1.  Il s’agit des prix unitaires des différents composants ;
2. Certains articles ne sont requis qu’une seule fois et d’autres en assez grand nombre ;
3. Many items depend on the command area of the irrigation schemes.

The economic benefits of the innovation are:

• Collection of additional money from the water users by the scheme managers and or by the deep tube well operators.
• The water users are very careful not to apply irrigation water unnecessarily to their plots, as more water means less money in their pockets.

Prospects for the evolution of the innovation

The system breaks down when there is no electricity, but the same applies to electric pumps. All the pumps under BMDA are electric pumps. There are issues with the reliability of electricity, but the farmers run an informal back-up system that pumps from ponds and khals. The farmers understand the limitations of electricity and some schemes are not fully cultivated due to the limited hours of electricity available.

Currently, the electricity situation in Bangladesh has improved significantly and special priority is given to irrigation facilities throughout the country during the irrigation season. In addition, BMDA has introduced solar energy sources for irrigation and this has been given priority by the management of the authority.

Conditions for the dissemination of the innovation and replicability

Having visited the BMDA area on several occasions and having had discussions with the water users, the Asian Development Bank (ADB), has now adopted a policy that for any loans or grants for new irrigation projects, the BMDA model should be replicated. This has already been the case for other assisted irrigation projects in Bangladesh (Muhuri Irrigation Project for 850 pumping units), Nepal (Terai Groundwater Development Project initially for 1000 tubewells), and India (Madhaya Pradesh Irrigation Projects).

Associated risks, negative externalities

Critique (au stade initial) :

• One of the main criticisms was the means by which farmers could obtain the cash needed to recharge the cards.
• Changing old practices is quite difficult for farmers because they are worried about introducing new concepts.
• The farmers were used to farming on the basis of contracts with informal moneylenders and unwritten contracts with programme managers and operators. This is why these vested interest groups were not happy and became critical of the proposed new system.

Risques :

• Accepting a new system is always a risky venture, especially in a conservative society.
• The concept of introducing a prepaid meter was not fully known to the engineers at the initial stage, hence the risk of failure.
• The deterioration of a prepaid meter installed at the pumping station, as most of the pumping units were installed outside the villages.

Precautions to be taken in implementing the innovation

• Dialogue with the different stakeholders before undertaking installations in the field.
• Demonstration to the water users before undertaking the actual works.
• Motivation through group discussions with the water users and representatives of the people of the areas concerned.

Additional documentation

http://www.bmda.gov.bd

https://agricultureandfarming.wordpress.com/2013/01/01/prepaid-metering-system-in-irrigation

https://thefinancialexpress.com.bd/national/country/rajshahi-farmers-taking-up-pre-paid-card-irrigation-system-1526020940

https://www.hrpub.org/download/20191130/UJM3-12114076.pdf

All of the photos were taken by Benjamin Vennat, except for that with the caption 'components of a prepaid meter'

Discussion