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Water Resources | Government/Regulations | Consulting/Research | Construction/Engineering | Irrigation/Flood Control
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MeneameChilean President Michelle Bachelet is expected to sign by month-end a bill modifying state financial support for irrigation and drainage projects, a member of the lower house's agriculture committee told BNamericas.
The bill will modify current legislation, which expires on January 1, 2010, that has mainly benefited large farmers and agriculture companies.
The proposal was submitted to the senate on March 2 where it was approved and sent to the lower house on September 16. The lower house approved the initiative on November 4, making no changes to the senate's proposed version, so the document was sent to the Presidential office for the final signature.
The new law will become effective by month-end, as Bachelet should take no longer than 20 days to sign the bill, the official said.
The funding will help cover the cost of studies, construction and rehabilitation of irrigation and drainage infrastructure, as well as the purchase of equipment to increase the surface area of irrigated land, improve water supply and increase irrigation efficiency, among other improvements.
The current law establishes a 75% state counterpart for projects submitted by farmers, but does not differentiate among them. Under this framework, the farmer that proposes the largest investment is most likely to obtain financial support, the official said.
The bill, on the other hand, separates farmers into three categories: small farmers will be able to apply for up to 90% state coverage of proposed investments; farmers with projects for an area of up to 40ha can apply for a maximum 80% coverage; those that submit projects for areas over 40ha will be able to obtain a maximum 70% subsidy.
Another modification establishes a maximum of 2% of the state fund to support projects involving more than 200ha, limiting funding to large farmers and agriculture companies.
The bill also allows small and medium-sized farmers to form associations and apply for funding to support joint irrigation and drainage projects, increasing the maximum funding to these initiatives from the current 24,000UF (inflation-linked units, US$1mn) to 30,000UF.
Finally, because farmers need to draw up projects before applying for funding, the bill sets up funding to cover the cost of studies and project design, which small and medium-sized producers often find hard to finance, said the official.
The bill is expected to have a significant impact on Chile's irrigation and drainage infrastructure as the projects it supports will reduce the amount of water lost in agriculture due to poor technical capacity.
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