The financial viability of irrigation management companies: A case study of Cu Chi irrigation system, Vietnam

Abstract

A crucial, yet little understood, element in the economic studies of irrigation is the role played by companies who manage the supply of water. Many of these companies are publicly managed as they have the potential to act as monopolists. Possibly as a consequence of their ownership structure, analysts have questioned the economic viability and management of these firms. The case is made that many of these companies do not run profitably, that they rely on government subsidies to survive, that they do not spend enough on maintenance and that they run down their capital base. The purpose in this paper is to specify the measures that allow analysts to examine the financial viability of a publi..