Irrigation in Mexico - Investment and Financing

Investment and Financing

The overall expenditure in the water sector approached US$ 3.9 billion in 2004, or 0.5% of the GDP. Of this amount, the public sector spent over US$ 3.5 billion, which is close to 2.5% of Mexico's budget, while the private sector accounted for the rest. A significant share of resources spent in the sector, including both investment and recurrent expenditures, comes directly or indirectly from water users. CONAGUA accounts for 30% of total expenditures in the water sector.

From 2000 to 2005, CONAGUA invested US$1.28 million in the irrigation sector, or about 40%of the overall CONAGUA investments. Seventy percent of those investments were allocated to the IDs and 30% were allocated to the IUs. Most CONAGUA investments programs are co-financed with the States and farmers. For example, in 2005, the Irrigation and Drainage Program (Programa Sectorial de Riego y Drenaje), was financed at 50% by CONAGUA, 15%by the States and 35% by farmers and the On-farm Irrigation Development Program (Programa de Desarrollo Parcelario), at 56% by CONAGUA, 5% by the States and 39% by farmers.