The sector review includes sevenchapters and one annex. This first chapter is an overview ofagriculture, irrigation and the purpose and content of thisreport. The second chapter provides a review of the Bank sown strategy and priorities for irrigation and drainagewithin its portfolio of investments, from the time of its2004 Strategy until the present. It also includes a shortsummary of key lessons learned in this sector. The thirdchapter provides a brief situation analysis for irrigationand drainage in Azerbaijan, including a description of keyparameters and changes; a description of rising challenges,needs and opportunities; and an overview of the Government sState Program (SP) for Sustainable Development ofAmelioration and water management for 2008-2015. The fourthchapter describes the issues of investment and financing ofirrigation and drainage priorities for infrastructuredevelopment, rehabilitation and modernization, andmanagement. This includes investment priorities for theGovernment as well as needs for cost recovery by water usersfor the cost of irrigation and drainage system operationsand maintenance. The fifth chapter describes theinstitutional framework and how it has emerged sinceindependence. It also identifies outstanding issues forfurther institutional development, both for the Governmentand for water users associations (WUA). The sixth chapterdescribes the implications of climate change for thevulnerable irrigation and drainage sector in Azerbaijan.Suggestions are provided for a process to prepare anadaptation strategy for climate change. The seventh chapteridentifies ten key priorities for investments in theirrigation and drainage sector in Azerbaijan. Thesepriorities are based on the views of staff of the WorldBank, staff of the AIOJSC (Amelioration and Irrigation OpenJoint Stock Company), selected consultants and the author.
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