aurelio ramos_water funds

8/3/2019 Aurelio Ramos_Water Funds

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Water Funds

IGEL, Mar 2011

Ami Vitale

Aurelio RamosDirector Conservation Programs for Latin America


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1. ChallengesWater supply is one of the main sustainable development

CHALLENGE in the 21st century:

- 1 billion people around the world without access to water

- By 2025, 2/3 of the countries will be water-stressed

- Every 8 seconds a child dies in the world becauseof lack of water acess or water pollution.

- Natural disasters (floods) happening every year

(human loss and USDbillions).

- Fish stocks diminished: 80% lost in magdalena River.


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Medium watersheds

Composite risk rankings (Eri-C)

Potential Risk

Low

Medium

High

Composite risk rankings for

13 anthropogenic activities

13 threats, examples:RoadsRailroadsMining

Cattle-ranchingPopulation density & growth

Main stresses to Latin America watersheds

LowMediumHigh

Watersheds at risk

Development Climate change impacts

El Nio effects on water supplies 120municipalities with no water in 2010Worst flood ever in Colombia, 2010


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nvest ng n t e

GREEN INFRAESTRUCTURE


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0.0

10.0

20.0

30.0

40.0

50.0

Conservado Uso actual (conpoltica ambiental)

Uso fuera parque(sin polticaambiental)

m3/ha/ao

toneladas/ha

/ao

Cantidad agua

Cantidad de sedimentos

Improve Accountability & Efficiencyon watershed investments

Source: Ciat, 2007 (TNC), Bogota Water Fund

Water quantity

Quantity of sediments (Component of Quality)

ConservedArea

Uses insideProtected Area

OutsideProtected Area

m3/ha/year

Ton/ha/year

Regulation significant but not quantified

10:1

Savings

USD 4.5M year


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The Model

Users Providers

Quito, Ecuador

Population: 2 million

Condor Bioreserve

& Surrounding farmlands

$

CLEAN

WATER

$inancialFund

2. Definition of Water Funds

Board

Water Fund


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Aporte acuferos Aporte caudal Cobertura

Priority areas for investment

Conectividad biodiversidad

Sistemarea ronda del ro

(250 mts cada lado)(Has)

rea en coberturanatural para

conservacin (Has)%

rea intervenidapara restauracin

(Has)%

Ro Amaime 7.126 3.135 44 3.991 56

Ro Bolo 2.210 1.414 64 796 36

Ro Desbaratado 1.016 772 76 244 24

Ro Fraile 2.792 2.345 84 447 16

Ro Nima 1.642 1.133 69 509 31

Ro Tulu 13.234 5.426 41 7.808 59

TOTAL 28.020 14.226 13.794

3. Conservation strategies and investments


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Type of investments: land use


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Months

No project

With project

Base flows


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Changes in water quantity

1990-2003 2015 -2039

0

50

100

150

200

250

Flowl(m3/s)

Time (months)

Monthly mean on water quantity

Lnea Base MRI

Escenario MRI

Adaptation to climate change: where to invest and how?


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Land use changes,restoration and other investments

Ecuador

Brasil Brasil

Colombia Colombia


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Ecuador Ecuador


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CIPAV, 2007

Land use changes and restoration


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4. Proof of Concept:

Quito Water Fund

14

Importance

2 million residents

Condor Bioreserve: 2.5 million acres, exceptionalbiodiversity, including 760 bird species; 28 rivers

Partners

EMPAAQ (Quitos water agency); Quito Electric Company;

USAID; Swiss Development Corporation; Cerveceria National(beer company); Tesalia Springs Co.

Conservation

Progress

2008: provided $800,000 for conservation inwatersheds: park guards, environmental education,sustainable livelihoods.

Ser io Pucci/TNC; Ami Vitale

Fund Progress 2000: $21,000 start-up 2011: $10,000,000 aprox.

Annual investments of nearly $2-3 million (leverage)


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10 years of impact in watershed conservation

and rural development : FONS

Impacted 500,000 hectares/1.2 million acres of land

Involved 30,500 children in Environmental Education

Programs Re-vegetated and maintained ~600 hectares of land/year for

the past 4 years

Reforested 2,033 hectares/5,023acres of land with over

2,000,000 trees Hired, trained, and employed 11 community parks guards to

help conserve protected areas

Engaged over 200 families in community development

projects in rural basins


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5. Water funds vision

Over the next 5 years $27 million of Seed Capital willleveragedirect investment of $143 million

in 32 Water Funds,

providing long-term

payments for environmental servicesto rural communities, and securing

clean and sufficient water andeffectivelyconserving 9 million acres

For50 million people in Latin America


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ModelProof

of

Concept

AdjustmentsTropicalAndes

Goals

Developed Quito 12 water funds (WF)Bogota

CartagenaCuencaZamoraWater for Life.

LARGoals

Platform

TNCTeams

32 WF

In LAR

9 M acres

50 M people

Other geographies

3,0 M acres

Protected Areas

0,5 M acresPrivate Lands

20 M people

Manual

Phase I: 2000-2006Proof of Concept

Phase II: 2007-11Model

Phase III: 2011-15Replication

PartnersIDB

NationalCapacityTNC in selected WF

PlatformRegional: IDB & TNCNational: Water Assoc

TNC:OtherGeographies

Phase IV: 2015World Scale

6. Going into scale


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Objetive:

The Platform would, strategically and on a case-by-case basis, provide capacity building fortechnical and human resource management; secure the necessary funding for such items asoutreach activities and feasibility studies or seed capital needed for each Water Fund.

Plataform (IDB-TNC-Corporate):

Best practices Regional projects Monitoring and accountability of funds Relationships with loans from IDB

Asoc. Nac de AcueductosColombia (ACODAL).Replicate water fundsPolicieNational accountabilityTNC: environmental accountabilityIDB: credits and financial support

Nacional Assoc. Of water utilities

Brazil

National Assoc of water utilitiesPer

Bogota FABoG

Valle del

Cauca FA

Medellin FA

SNSM FA

The Platform (in 5 years)


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7. Conclusions

1. Water funds as a powerful tool.

2. Secure some of the medium and long term capitalization

funds.

3. Still proving some hypothesis, but replicating.

4. Model different for rural areas.

5. Strategy on a broader watershed management work.


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AURELIO RAMOSDirector Conservation ProgramsThe Nature Conservancy

[email protected] 57 5 6649893
mailto:[email protected]:[email protected]

aurelio ramos_water funds

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