Key highlights from the Eco cuencas project, OIEAU

1. Consolidating results within Eco-Cuencas project
Alain Bernard IOWater – WGI/OECD Meeting
Paris, July 4th, 2017
BASINS AND FINANCIAL REDISTRIBUTION IN ACTION

2. 2
1. Ecocuencas Project
Central purpose:
Promote watershed management and in
particular financial redistributive instruments
as relevant tools for funding adaptation to
climate change
Budget:
Global budget: 2,5 millions €
Financing: - European Union (75%)
- Partners counterparts (25%)
Calendar:
2015-2017
Duration: 36 months

3. Asociado
Alemania
Francia
Italia
España
Participante
Partners of Eco Cuencas Project

4. 4
Components
1. Participative
evaluation of the
initial situation
2. Guide for
implementation of
financial mechanisms
3. Pilot projects
implementation
4. Difusion of results
and lesson learned,
capacitation building.
Brasil :
PCJ
Colombia:
Cuenca del embalse del
Rio Grande II
Ecuador / Perú
Chira - Catamayo

5. 5
Component 2
Financial mechanisms :
recommendations and concrete
applications
• Leader: Ecologic Institute
• Exchanges between European and
Latin-American institutions
• Guideline for the implementation of
mechanisms
• Monitoring and assessment of the
concrete application (feedback with
Component 3)

6. The Guide…
1. Covers WRM charges and PES schemes, within the general context of
financing of RBM in the context of climate change.
2. Approaches financial mechanism implementation from a pragmatic,
process perspective – but also provides theoretical background and
principles to be followed
3. Based on importance of local context (legal framework,
economic and equity considerations, water governance,
history of public/private sector involvement in water
management, etc.) provides wide range of practical
examples of mechanism implementation as good
practice examples
606/07/2017

7. 7
Focus on the 3 pilot projects
• Partners at various scales:
National (ANA-SENAGUA)
Basin (Agencia PCJ)
Watershed (Cuenca Verde)
• A good panorama of redistributive mechanisms :
Charges for use of raw water (Ecuador)
Water and contamination charges (Peru/Brazil)
PES (Colombia)
• Management methods and measures in the framework of CC adaptation:
In parallel of economic instruments, each pilot also studies CC adaptation measures
(trough planning processes and/or concrete actions) with criteria of economic / cost
benefit analysis (no regret measures) and the strengthening of human and ecosystem
resilience

8. Geographical scales
European Union Brazil
2. Brazilian and PCJ context

9. European Union Brazil
28 Membros States
4 493 712 km²
Population: 507 400 000 inhab
PIB per capita: US$ 31 607 $/hab
IDH (2011): 0,910-0,771
27 States
8 514 876 km²
Population: 192 376 496 inhab.
PIB Per capita: US$ 10 526
IDH (2011): 0,718

10. 10
-France(Laws : 1964, 1992, 2006)
-EU(Framework Directive: 2000)
-Brazil (Law 9.433 : 1997)
Legal and institutional frameworks
quite similar between :

11. Fuente: Léo (2014)
Hydrographical regions and PCJ basins
Brasília
Rio de
Janeiro
São Paulo

12. Fuente: Léo (2014)
PLATA RIVER BASIN - PCJ BASINS

13. Fuente: Léo (2014)
Ciudad de
São Paulo
Ciudad de
Piracicaba Ciudad de
Campinas
Sao Paulo State: Management Units and PCJ
basins

14. 76 Municipalities ~5,5 Millons Inhabitants
~15.000 km2
Piracicaba
São Paulo
Campinas

15. Cantareira System
Fuentes: ANA e Agência PCJ
A flow up to 31 m3/s taken from PCJ basins
to provide São Paulo Region
CUENCAS DEL
“ALTO TIETÊ”
CUENCAS PCJ

16. Committee PCJ – Parliament
Water Agency for PCJ Basins – Foundation, non-profit
making, conceived for executing PCJ Committee’s policies
PCJ Consortium – Water users association, with
volunteer membership
“PCJ”: INSTITUTIONS

17. SUPPORT: 12 TECHNICAL COMMISSIONS
STRUCTURE OF PCJ COMMITTEES

18. Governance Issues:
PCJ institutions are
managing 3 right-
bank tributaries of
« Upstream Tiete » -
A way for
integrating overall
Tieté River Basin,
incl. Sao Paulo city ?
Ecocuencas - UE 18
3. Key issues

19. Consequences on:
 Political issues : how to really integrate
Sao Paulo city within the decision making
process, and not « only undergo » decisions
from outside the basin
 Planning issues : lack of coordination
between the various sub-basins; lack of
consolidation at Tieté level: how to reach a
real integrated water resources
management at Tieté basin level, including
CC issues ?
 Financial issues: collected money from
« cobrança » is much more limited, as well
as the budget for operating a Water Agency
in a smooth way.
19
?
PCJ
Tieté

20. 20
A structural balance problem

21. REGULAR FLOW OF PIRACICABA RIVER ?
Río Piracicaba en la ciudad de Piracicaba. Fuente: AGENCIA PCJ
Climate change issues

22. PIRACICABA RIVER IN 2014
IMPACT OF CLIMATE CHANGE ?
Fuente: AGENCIA PCJ
CONSEQUENCES?

23. Cost of “no-action”
 In some cities, the situation was really
critical (collapse of water system) :
- Close of some commercial sites;
- Postpone of some industrial projects
- Decrease in the quotation of real
estates, linked to the fall of investment
demand
 In 2014, an important number of municipalities
had to take some measures for reducing water
consumption.
(even if many efforts were made…)

24. Program Amount
Studies and data bases R$ 79.200.000,00
Management R$ 19.427.408,40
Recuperation of water quality R$ 886.665.991,96
River Conservation and protection R$ 383.460.000,00
Rational use of water R$ 1.036.949.322,78
Multiple use of water resources R$ 179.114.579,80
Prevention and protection against extreme
hydrologic events
R$ 138.540.000,00
Technical capacity building, environmental
awareness and communication
R$ 30.480.000,00
Total R$ 2.753.837.302,94
Funding issues:
Basin management plan - 2010-2020
Fuente: COBRAPE, 2011
PROGRAMMES WITH MANY NON-REGRET MEASURES
amount not specified in current presentation

25. Adaptation to climate change

26. Identifying measures for adaptation to climate change:
 Reducing vulnerability associated to water availability
 Non regret measures with priority
 Rational use – Demand management ; Reduce leaks
 Improve rates of waste water collection and treatment (less
water in the rivers = less dilution)
Better identify and assess necessary
adaptation measures within management plan

27. Investment through « cobrança »
370 M R$ in 20 years
190 MR$ in 10 years
Management plan for 10 years: 2,753 MR$

28. Ratio between « cobrança » and
plan funding needs
Ecocuencas - UE 28
Cobrança
Needs

29. Financing : charges collection in PCJ
R$
Evolution R$ /€
since 2007
2007 July 1€ = 2, 6 R$
2017 July 1€ = 3,7 R$

30. 2009-2015 34% en Federal Resources
44% in State Resources
Global amount : 30 M R$ in 2015 (50 M R$ in 2009).
=> Lack of indexation on inflation
Falldown in global amount colected
through “cobrança”

31. - PCJ : less than 0,5%
- France : 15%
GDP = 250 Billions R$
=> Significant potential for increasing “Cobrança”
Benchmarking : “cobrança”
compared to the tariff of water m3:

32. Financing : Enlarging the base of
polluter charges
Violations to the discharge framework

33. Financing : Enlarge the base of
polluter charges
Violations to the discharge framework

34. Aggregating one new parameter (P)
= a long term process (5 years ?)
 Better definition of current conflicts, environmental,
technical and financial constraints (knowledge,
monitoring, data management …)
 Identification of the measures to be taken
 Financial assessment of these measures
 Potential contributions to the funding scheme,
including through cobrança
 Willing to pay / capacity of payment
 Decision making and implementation
Ecocuencas - UE 34

35. Integration of information systems - diagram of water
users' registries in PCJ basins (sources and types of
users)

36. Integration of information systems - diagram of water
users' registries in PCJ basins (sources and types of
users)

37. Most OECD remarks
are verified for PCJ basins
 Cobrança too low to induce changes in behaviors and
too provide a significant source of funding
 Economical and social consequences insufficiently
assessed for all categories of water users; Difference to
be made between capacity and willing to pay
 Question of political will or .. political « weight »
 Need for indexation on inflation
 Need for improving and speeding the spending
mechanisms (status of « public money »)
 Access to funding support for private water users also
Ecocuencas - UE 37

38. Most OECD remarks
are verified for PCJ basins
 Low ratio between cobrança and management plan
funding needs
 Complexity due to the link between permits (otorgas)
and cobrança (for instance, for a new parameter to be
implemented)
 Methodology for news parameters :
- Raise economic resources in order to better manage the waters
and remedy the damages.
- Play an incentive role at the environmental level.
- Do not impair economic activity, applying acceptable levels of pay.
- Acceptable or not, through simulation with concrete values and
compare them with Net Incomes.
Ecocuencas - UE 38

39.  Basin scale is being questioned
 Planning coordination needs with the « higher
geographical level »
 Planning funding and implementation must be
improved
 Lack of monitoring and data management, decision
making tools, including on the water users capacity to
pay
Ecocuencas - UE 39
Most OECD remarks
are verified for PCJ basins

40. 40
Component 3 in the PCJ Basin

41. This material has been prepared with the financial
assistance of the European Union
Contents are the exclusive responsibility of the Eco Cuencas project, and does not
reflect the position of the European Union.
Thank you for
your attention