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![Page 1: FORAGUA LinkedIn](https://reader031.fdocuments.net/reader031/viewer/2022021814/58e960da1a28abb45f8b59dd/html5/thumbnails/1.jpg)
Improving Water Supplies, Saving Forests:The Example of Southern Ecuador´s
Regional Water Fund
Matt ClarkNature and Culture International
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Presentation Overview
• Background – Forest ecosystem services
• Problems -- Deforestation & poor watershed mngt.
• A Solution --- FORAGUA Regional Water Fund
• Initial results – Improved water & conserved forests
• Next steps
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Ecuador on the map
Roughly the size of Colorado or the UK
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Ecosystem Services
– Retain and filter water
– Incredible biodiversity
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Horizontal precipitation (clouds and mist)
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Water retention – 21,000 gal. per acre
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High Andean Páramo
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Tropical Andes - Biodiversity HotspotOne-sixth of the world´s vascular plant species in 1% of the world´s land area
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1515 bird species in Ecuador
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The Challenges
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Deforestation: 1.4% a year
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Silica mining in Nangaritza Valley
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Cattle in Loja´s potable water source
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Deforestation & Poor Watershed Management
↓ Water Quality ↑ Water-borne diseases
↓ Available Water Supply
↓ Biodiversity
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Annual cases of water-borne disease300% to 400% increase over 20 years
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ZAMORA LOJA EL ORO
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Water shortages
Western Andean Slope - Dry forest
Two to four hours of water a day
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A Solution
A funding mechanism and a legal & managementframework for watershed conservation & restoration
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FORAGUA Service Area:Three Southern Provinces
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FORAGUA = Public Trust Fund
Five founding municipalities and Natureand Culture International
– National Finance Corporation as fiduciary
Participating municipalities levy a fee onwater users
90% funds → Municipalities´own watersheds
10% funds → Technical Secretariat
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15 municipalities enrolled(39 eligible)
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How to join FORAGUA?
• Voluntary
• Municipalities must adoptan ordinance:– Declare municipal
watershed reserves
– Charge water users a fee• Only for watershed
management
– Authorize enrollment in FORAGUA
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Fee structure
• 4 to 15 cents per m3 of water
• $521K = Total collected in 2014
Loja - $459K
Centinela del Cóndor - $2K
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What makes FORAGUA innovative?
• Integrates multiple municipalities into a single fund
• Pooled resources enables small municipalities toparticipate
– Access to Technical Secretariat (admin. & tech. support)
– Access to external funds → $2.1M raised to date (supplementing water use fees)
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FORAGUA Accomplishments to date
• 174,028 acres protected– Plus 37,681 acres purchased
• $388,651 average annual revenue
• 432,000 people served
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With FORAGUA funds, City of Loja bought 90% of watershed(2050 acres)
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Removed 200 cows
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Fecal coliforms El Carmen MPN per 100ml
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EXPENDITURE FOR CHEMICAL INPUTS FOR WATER TREATMENT
IN LOJA MUNICIPALITY
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Pisaca Municipal Reserve
Water catchment for Catacocha
Protects 1000 acres of Tumbesian Dry Forest (only 5%
remaining)
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Loja´s Municipal Reserves: Buffer zone for Podocarpus Natl. Park
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Next steps for FORAGUA Scale up. Deliver impact.
• Enroll 24 remaining municipalities– 278,000 more acres protected
– 850,000 more people served
– $700K per year more for watersheds
• Support municipalities in implementing projects
• Monitor results → Demonstrate impact
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Challenge to achieving scaleEnrollment bottleneck
• Time and labor intensive
• Lack of capacity (and stable work force) at municipal level
• Opportunity costs for Technical Secretariat
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A Water School as a solution
• Phased training → Guide a cohort of municipal technicians through enrollment process
• Operational efficiencies
• Builds capacity at municipal level, reduces reliance on outside experts
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Need for diversified revenue
• Tech. Secy´s Annual Budget– 50% Loja´s contribution
– 30% from external grantoverhead
• Enrolling new municipalities– Decrease reliance on Loja
– Unfunded work
• Addl. recurring revenue?– Fee for service?
– Endowment?
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Opportunity toleverage partnerships
• Technical Working Group recently formed
– Focus effective water management in s. Ecuador
• Revenue opportunities, operational efficiencies within this network?
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Recap
• FORAGUA – Funding mechanism and
management framework
• Water quality (primary driver)
• Biodiversity / ecosystem conservation