Water Governance Policy Dialogue in Peru

Gabriel Quijandría AcostaVice Minister for Strategic Development of Natural Resources

09/01/2020

Source of water Data

Glaciers

Total: 3 ,044 glaciers cover 2,399 km2

Pacific: 1 ,129 (cover 878 km2)

Amazon: 1, 824 (cover 1,113 km2)

Titicaca: 91 (cover 50 km2)

Lakes and Lagoons

Total: 12,201

Pacific: 3,896

Amazon: 7,441

Titicaca: 841

Basins: 23

Rivers 1,007

Aquifers

Pacific slope: 2,700 Hm3 (reserva aprovechable)

Atlantic and Titicaca slopes are not determined

Source: Water Resources National Policy and Strategy, ANA. 2015

03 main water slopes:

Atlantic: 97.3% water available, 33.5%population.

Pacific: 1.76% water available, 62.53%population (Year 2013).

Titicaca: 0.6% water available, 4.2%population.

2018, Pacific slope: 2% water available, 66%population.

Since 2011, progress has been made towardswatershed management with the creation ofBasin's Water Resources Council.

Of the 29 planned by the National WaterAuthority, 13 have been created, 1 Sub-basinCommittee for the Mayo river in San Martin and 3more are in process of being established.

In total: 159 hydrographic units Water supply: 1´935,621 hm3/year

Source: National Water Authority (ANA)

Amazon hydrographic region

Titicaca hydrographic region

Pacific hydrographic region

62 Hydrographicunits

84 Hydrographic units

13 Hydrographic units

And 34 transboundary watershed with: Ecuador, Colombia, Brazil, Bolivia and Chile.

Water shortage

The most prone area to drought: the southern highlands of Peru.

1.5 million people directly affected that live above 3,500

meters.

70% of the EAP in these places is dedicated to agriculture and

livestock.

80% are grazing land with little cropland.

14.5 millions hectares of degraded ecosystems*

Flood

Not all floods or heavy rains can be attributed to the El Niño

phenomenon. Floods caused by human activity occur on river floodplains, mostly in urban

and/or agricultural areas.

Coast: rivers overflow with hyper-concentrated flows,

causing erosion and sedimentation.

Highlands, overflows of Andean rivers, landslides caused by

excessive rains, earthquakes or glacial accidents.

High concentrations of solids produce overload in treatment systems, increasing treatment

costs.

Inadequate water quality

Interferes with the use of water resources: irrigation, animal

consumption, water production for human consumption, ecosystem services, etc.,

causing socio-environmental conflicts between basin

stakeholders (water users).

41 hydrographic units exceed the water EQS, caused by the

dumping of untreated wastewater, inadequate

management of solid waste, environmental liabilities,

informal and illegal mining.

Risk of undermining the resilience of freshwater

systems

Anthropocentric approach: "water resources" suitable for

human uses without considering health or integrality of

ecosystems.

Knowledge scarcity about the diversity of species that make up aquatic ecosystems, as a

basis for water bodies resilience.

Since 1970 Peru has lost +50% of its glacier surface, affecting

hydrological regimes that depend on their contributions.

Access to drinking water and sanitation

Urban area: plants for the production of drinking water, whose level of treatment is in most cases of secondary level.

Rural areas, the level is primary with simple disinfection.

In some parts of the country, water is consumed directly,

without treatment.

Water ResourceRisks

Sources: - OECD, 2016. Perú Environmental Performance Review. - National Water Authority, 2015. Water Resources National Plan.- MINAM Multiannual Program for Investments. Available in http://www.minam.gob.pe/wp-content/uploads/2018/04/RM_N-151-2018-MINAM.pdf .

Gap Indicators of the environmental sector

IndicatorSize of the Gap

Base Line (2019)

Percentage of degraded ecosystems surfaces that provide ecosystem services

and require recovery.4,168,234.9 ha

Source: http://geoservidor.minam.gob.pe/monitoreo-y-evaluacion/restauracion-de-areas-degradadas/

Public Investment Gaps in Natural Infrastructure

It is stipulated:

Article 1.- Approve the indicators of infrastructure gaps or access to publicservices of the Environment Sector, for their application in the MultiannualInvestment Programming phase 2020 - 2022, of the three levels ofgovernment, indicated below, and whose description is developed inAnnexes I and II, which are part of this Ministerial Resolution.

2° pillar of Policy :Integral management of environmental

quality

3° pillar of Policy :Environmental governance

4° pillar of Policy :International environmental commitments

and opportunities

1° pillar of Policy:Conservation and sustainable use of natural

resources and biological diversityNational EnvironmentalPolicy

National Policy and Strategy of Water Resources

National Water Resources Plan

Watershed Management Plan

Inst

rum

en

ts

Loca

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atio

nal

Source: National Water Authority (ANA)

Framework for Integrated Water Resources Management

3° pillar of Policy : Opportunity Management

2° pillar of Policy: Quality Management

1° pillar of Policy: Quantity Management

4° pillar of Policy:Water Culture Management

5° pillar of Policy :Adaptation to Climate Change and

Extreme Events

GOAL:Balance and harmonize the supply and

demand of water, protecting its quality and quantity, promoting its efficient use and

contributing to local, regional and national development.

TARGET:Determine the ways that allow solving

water problems in Peru, establishing costs and sources of financing; as well as

implementation programs.

Meet the goals of the Sustainable Development Goals.

Compliance with the international commitments in the context of the Paris Agreement

Progress in the process of accession to the OECD

Linked to poverty reduction priorities

Linked to disaster risk reduction in a context of

climate change.

Linked to cleaner production patterns, resilient

infrastructure, low carbon growth.

Allow to lay the foundations for the transition to Green

Growth.

For a modern, competitive and climate

change resilient Peru

Increase the competitiveness of economic activities

Climate commitment for a better Peru

Population use (10)

Agricultural use (7)

Multisectoral Management (8)

Energy use (6)

The measures are aimed at increasing water supply, reducing the impacts of extreme events, and improving water efficiency andmanagement in watersheds vulnerable to climate change.

NDC WATER - 31 adaptation measures

The measures of the Multisectoral Management component are aimed at:

1. Implementation of major hydraulic infrastructure in watersheds vulnerableto climate change

2. Conservation and recovery of natural infrastructure.3. Implementation of Early Warning Systems.4. Monitoring and surveillance of the quality of water resources.5. Modernization of the Granting of water use rights.6. Granting of water use rights in vulnerable basins incorporating climate

scenarios7. Greater multisectoral and multi-stakeholder articulation for IWRM due to

the effects of Climate Change8. Information services for planning and multisectoral management of water

resources.

Source: Final Report of the Temporary Multisectoral Working Group responsible for generating technicalinformation to guide the implementation of Nationally Determined Contributions (2018).

Mechanism for Payment of Environmental Services (MERESE)

Ecosystem services recognized in the Regulation of Law No. 30215 as part of MERESE

Climate Regulation

Soil Erosion Control

Landscape Beauty

Regulation of natural risks

BiodiversityMaintenance

Carbon sequestrationand storage

Provision of geneticresources

Air quality regulation

Pollination

Recreation and ecotourism

Nutrient cycle

Soil formation

BenefitPayments

RESOURCE PROTECTORS/PAYEES

Community groups

PAYERS• Sanitation Service Provider (EPS)• Irrigation user groups• Irrigation Projects• Hydroelectric Companies• Tourism Companies

Voluntary Agreements

Water Regulation

Payment scheme based on voluntary agreements to implement conservation, recovery and sustainable use of

ecosystems for the benefit of the population.

$7,386 $9,137 $15,762 $15,859 $43,726 $51,053 $53,865 $69,411 $72,668 $85,672 $85,841 $88,412 $131,910 $156,692 $161,420 $182,418 $189,227 $192,463 $205,777 $207,071 $261,104 $311,765 $332,743 $347,946 $358,977 $471,976 $505,047 $553,158 $564,704 $582,932 $609,949 $612,971 $635,886 $667,979 $870,568 $877,395 $1,094,923 $1,328,505

$4,023,362 $25,923,110

EPS EMSAPA CALCA S.A.

EMAPA Pasco S.A.

EPS EMAQ S.R.L.

EMAPAVIGS S.A

EPSSMU S.A.

EPS SIERRA CENTRAL S.A.

EPS RIOJA S.R.L.

EPS Barranca S.A.

EMAPA HVCA S.A.

EPS MOQUEGUA S.A.

SEDA HUANUCO

EPS Aguas de Lima Norte S.A.

EPS MARAÑON S.R.L.

EMAPACOP S.A.

EMUSAP S.R.L.

EPS EMUSAP ABANCAY S.A.C.…

EPS TACNA S.A.

SEDACAJ

SEDAM HUANCAYO S.A.

EPS SEDACUSCO S.A.…

Total $42,960,770

40EPS with tariff

resolution to raise

resources for MERESE

concept

EPS with viable projects

to execute

05

EPS SEDAM HUANCAYO S.A.

EPS SEDAPAL S.A.

EPS MOYOBAMBA S.A.

EPS EMUSAP AMAZONAS S.A.

EPS EMAPA SAN MARTÍN S.A.

Projected fund of the EPS MERESE reserve

Socio-environmental

projects accomplished

37* 1.5 M*soles approx.

executed in activities

for the sustainability

of ecosystems (2014-

2016)

07Water user groups (JU)

committed with MERESE:

3 JU retributing

4 JU committed

Results of competitive funds:

• 37 conservation and recovery sub-projects financed (for a total amount of S/ 5’786,256.23).

• 13,988.4 hectares to be conserved and recovered (1,510 beneficiary households).

SHORT-TERM MECHANISMS

FASThe Social Advancement Fund

(DL 1334)

The Operations Manual of the Social Advancement Fund is

approved

The FAS will finance prioritized programs and projects that allow closing gaps in basic services and

infrastructure in the influence areas of energy and mining

activities and of other sectors.

Investment Mechanisms for Natural Infrastructure

Creation of the Water FootprintProgram, as a result of a voluntaryprocedure (Chief Resolution No. 104-2018-ANA).

Recognition of the State of the goodpractices applied by privatecompanies in the efficient use ofwater.

It places value on socialresponsibility in the water resourcesmanagement at basin level.

Promoting the Business Water Footprint

Source: National Water Authority (ANA)

6 companies in the process of achieving the Blue Certificate

At least 10 companies arestarting water footprintstudies

8 companies with the Blue Certificate (3 with a renewal)

WATER FOOTPRINT

EVALUATION

DESIGN OF REDUCTION AND SHARED VALUE

PROJECTS

REGISTRATION IN THE NATIONAL

WATER AUTHORITY

EXECUTION OF REDUCTION AND SHARED VALUE

PROJECTS

FOLLOW-UP AND MONITORING

VISITS

OBTAINING THE BLUE CERTIFICATE

BLUE CERTIFICATE RENEWAL

START

Goals:

Strengthen multilevel governance, both in the management of water resources and in the provision of water services; Design and implement sound economic instruments to manage demand; and, Strengthen the regulatory framework for water resources management and the provision of sanitation services.

Water Governance Policy Dialogue in Peru

1. Diagnosis and identification of

measures to overcome the

multilevel governance gaps.

2. Economic instruments to

achieve broader water policy objectives

3. Improving the regulatory

framework for water resource

management and service delivery

4. Case studies (governance framework,

economic and social consequences, options for the

management of the revenues and tailor recommendations)

5. Action Plan: Policy

recommendations and key

stakeholders

• Short/medium/long term actions,• Indicators to track progress in implementation,• Relevant best international practices,• Identification: who can do what within the country, how and when.

Key Stakeholders Involved

CRHC

User Groups(agrarian and non-agrarian)

EPS

Peasant and indigenous

communities

Development Agencies

Mancomunidades

GORE GOLO

Development Banks ONG Academy

International Organizations

CONFIEP SNI

SNMPEABRESACOMEX

PERÚ 2021CCL

ADEXAGAP

Leaders +1

JASS

ANAMINAGRI

SUNASS MINSA

MVCS

OTASS

MINAM

PCM MRE

PRODUCEMINEM

MEFMIDIS

GWP Perú

AWS

2030 WRG

• First OECD mission: interviews with 70 actors from governmental and non-governmental entities (public, private and civil society).

• Second OECD mission: interviews with 46 entities involved in water resources management in the basins of Ica-Huancavelica, Olmos, and the Chillón, Rímac and Lurínriver basin.

Key Elements of Dialogue

Public Management

Operationalization

• Law 29338, Water Resources Act, 2009. New model of institutional management and organization for IWRM.• Basin's Water Resources Council (CRHC) set as multi-actor and multilevel articulation instances.• Fragmentation, coordination and articulation gaps persist: Govt. National, Regional, Local, CRHC, users, among

others.

• Need to link national planning versus planning at the basin level.• None of the 6 CRHC with water resources management plans have been fully implemented yet.• Its operationalization lacks the political commitment and provision of necessary resources.

• Raise awareness about the efficient use of water.• Interventions have focused on infrastructure for capturing and distributing water resources,

without taking into account:i. source of the water resource andii. impacts that the discharges have on the health of the population.

• Articulation of the water resources policy with the needs of the indigenous and peasantcommunities located in influence areas of economic interventions.

• Platforms for the information exchange are mostly set at the national level, pending at basin level.• Lack of interoperability of multilevel information systems and service providers.• Need to communicate the results obtained, with clarity and fluency, in order to generate

predictability and trust among the actors involved in the management of water resources.

Water Culture

Information Quality

Tariffs and Sanitation Service Providers Sustainability

• Progress in the establishment of tariffs and economic retributions (for example, groundwater). Low valueallocation affects the financial sustainability of service providers.

• Dependence of the public budget.• Review investment approaches that leverage and expand funding sources.

Natural Infrastructure

Capacity Building

• Knowledge gaps difficult the interaction and understanding between actors.• Need to develop evidence to support decision making.• It is not clear that water resources have a dual function: resource and service provider.• Result: Population needs are not efficiently covered or attended (poverty, anemia, sustainable use of the

resource, distribution of income)

• Goal: inclusion of natural infrastructure definition in the national investment system Invierte.pe• Still a need for adapting the actual process for projects in natural infrastructure.• It is necessary to continue generating technical tools as a guide for project developers.• Water MERESE: good practice not globally common. Its implementation requires solving:

i. Subscription of agreements and determination of economic retribution;ii. Indicators that measure the relationship between conserved hectares vs. water flows.

Key Elements of Dialogue