The Agricultural Policy and Food Ministry of Ukraine plans to raise $1 billion of investment in 2016 to restore irrigation systems in southern Ukraine.

"In 2016 it is planned to receive up to $1 billion of investment in the area. The expected effect from the implementation of the project is irrigation of almost 400,000 hectares of farmland in five southern regions of Ukraine, which means the increase in the yield by three times and the increase of revenue of agricultural producers, "the ministry said on its website on Tuesday.

Minister Oleksiy Pavlenko said that the ministry is ready to act as a guarantor of the merger of state-managed irrigation systems, set transparent and clear tariffs and attract loans to reconstruct and renovate the systems.

Pavlenko is confident that farmland with irrigation systems should have a special status. Personal responsibility of owners and leasers of irrigated farmland should be established for the improper use of this land – not only as farmland, but as irrigated farmland. This would allow large land users to consolidate irrigated farmland into technological clusters under leasing agreements.

The minister also said that taking into account the long payback periods for funds invested in restoration of irrigation systems and purchase of sprinkler units, the term of leasing for this land should be at least 10-15 years.

It is also important to separate trunk and distribution channels, shift away from the territorial principle of managing the distribution channels and change relations between irrigators and water supply organizations.

On December 8, 2015, the Ukrainian parliament passed at first reading bill No. 2920 foreseeing the term for leasing of farmland under reclamation of at least 10 years.

In May 2015, the parliament passed the bill on the privatization of infrastructure of reclamation systems.