The Mechanism of Public-Private Partnerships as an Important Element of the Development of Irrigated Agriculture

Abstract

Stable development of agrarian production in arid climate conditions demands a large-scale integrated water management of land, that allows to provide high and stable yields of agricultural crops. Today, such a task is especially relevant in the arid regions of different countries of the world and Russia, where land reclamation is already actively developing in practice. To solve this socially significant task, the accurately organized interaction of the state and the private sector is required. An effective tool for the interaction of the state and private business in the production of agricultural products on irrigated lands is the Public-Private Partnerships (PPP) mechanism. PPP has already proved its effectiveness in solving many socio-economic problems in various countries of the world, and is actively developing in Russia. The modern mechanism PPP is able to compensate for the budget deficit and to solve especially important problems of irrigation amelioration development. PPP is an alternative to the privatization of vital, state-owned objects of strategic importance. The most effective form of public-private partnership to improve the efficiency of irrigated farming is determined based on the use of the BOO-Build, Own, Operate-construction-ownership-management model ensuring the private partner's ownership of the facility during and after the agreement period.