Report No. 20729-AR Argentina Water Resources Management Policy Elements for Sustainable Development in the XXI Century Main Report August 30, 2000 Latin America and the Caribbean Region Office Argentina Country Department and Finance, Private Sector and Infrastructure, and Environmentally and Socially Sustainable Development Document of the World Bank EXCHANGE RATE (August 23, 2000) Unit = Peso US$1.00 = P$1.00 P$1.00 = US$1.00 FISCAL YEAR January 1 - December 31 ACRONYMS AIC Autoridad Interjurisdiccional de las Cuencas de los Rios Limay, Neuquen y Negro (Interjurisdictional Authority of the Limay, Neuquen and Limay Watersheds) AyEE Agua and Energia Electrica (Water and Power) CAS Estrategia de Asistencia el Pafs (Country Assistance Strategy) CBA Cost-Benefit Analysis CEA Cost Effectiveness Analysis CELA Centro de Economia, Legislaci6n y Administraci6n del Agua (Center for Water Economy, Legislation and Administration) COIRCO Comite Interjurisdiccional del Rio Colorado (Inter-Jurisdictional Committee for the Colorado River) COFEMA Consejo Federal del Medio Ambiente (Federal Environmental Council) COREBE Comisi6n Regional del Rio Bermejo (Regional Commission of the Bermejo River) CMU Country Management Unit CNA Comisi6n Nacional del Agua (National Water Comrnission) CRA Centro Regional Andino (Andean Regional Center) CRAS Centro Regional de Aguas Subterraneas (Regional Groundwater Center) CUA Cost Utility (or Feasibility) Analysis DGI Departamento General de Irrigaci6n de Mendoza (General Irrigation Department of Mendoza) DNRH Direcci6n Nacional de Recursos Hidricos (National Bureau of Water Resources) DR Distritos de Riego (Irrigation Districts) EIMAC - San Roque Ente Intermunicipal Comunal para el Manejo Ambiental de la Cuenca del Lago San Roque(Intermunicipal Communal Agency for the Environmental Management of the San Roque Lake Basin) ENOHSA Ente Nacional de Obras Hidricas de Saneamiento (National Sanitation Works Agency) ESW Estudios Econ6micos Sectoriales (Economic Sector Work) GDP Gross Domestic Product IBRD International Bank for Reconstruction and Development IDB Interamerican Development Bank INA Instituto Nacional del Agua and el Ambiente (National Institute of Water and Environment) INDEC Instituto Nacional de Estadistica and Censos (National Institute of Statistics and Census) LAN Ley de Aguas Nacionales de Mexico (Mexican National Water Law) MDSyMA Ministerio de Desarrollo Social y Medio Ambiente (Ministry of Social Development and Environment) MIyV Ministerio de Infraestructura y Vivienda (Ministry of Infrastructure and Housing) Vice President David De Ferranti, LCR Country Director Myrna Alexander, LCC7C Sector Directors Danny Leipziger, LCSFP, and John Redwood, LCSES Team Leader Jose Simas, LCSES PRODIA Programa de Desarrollo Institucional Ambiental (Institutional Environmental Development Program) PROSAP Programa de Servicios Agricolas Provinciales (Provincial Agricultural Services Program) RMBA Regi6n Metropolitana de Buenos Aires (Buenos Aires Metropolitan Region) SAGPyA Secretaria de Agricultura, Pecuaria, Pesca y Alimentaci6n (Secretariat of Agriculture, Livestock, Fisheries and Nutrition) SDSyPA Secretaria de Desarrollo Sustentable y Politica Ambiental (Secretariat of Sustainable Development and Environmental Policy) SOP Secretaria de Obras Publicas (Secretariat of Public Works) SPIDES Sistema Provincial de Informaciones de Empresas de Saneamiento (Provincial System of Information on Sanitation Companies) SRNyDS Secretaria de Recursos Naturales y Desarrollo Sustentable (Secretariat of Natural Resources and Sustainable Development) SSRH Subecretaria de Recursos Hidricos (Under-Secretariat of Water Resources) SUCCE SubUnidad Central de Coordinaci6n para la Emergencia (Central SubUnit for Emergency Coordination) UNDP United Nations Development Program WRM Water Resources Management (Gesti6n de los Recursos Hidricos - GRH) Note: Under Decree 20/99, dated December 13, 1999, a new organic structure and functions were approved for Secretariats and Under-Secretariats. The Under-Secretariat of Water Resources is no longer subordinate to SRNyDS but rather to the Secretariat of Public Works of the Ministry of Infrastructure and Housing. In addition, SRNyDS is now called the Secretariat of Sustainable Development and Environmental Policy, subordinate to the Ministry of Social Development and Environment. iii World Bank Office of the Regional Vice President for Latin America and the Caribbean Argentina Departament Water Resources Management Group Vice President: David De Ferranti Argentina Country Director: Myrna Alexander Sector Director FPSI: Danny Leipziger Acting Sector Director ESSD: John Redwood Argentina Water Resources Management Team: Lead Specialist: Abel Mejia Task Team Leader: Jose Simas Team Members Bank Staff: Hynd Bouhia Maria Angelica Sotomayor Musa Asad Adrien Campbell Graciela Lituma International Consultants: Nguyen Quang Trac Regina Martinez Hector Garduffo Francisco Jose Lobato Local Consultants: Cesar Magnani Guillerno Wood Juan Carlos Miller Juan Carlos Gimenez Miguel Auge External Reviews: Jerson Kelman Miguel Solanes Gustavo Diaz Claudio Laboranti Cora Bonet Javier Pascuchi Peer Reviewers: Fernando Gonzalez Thomas R. Wiens John Briscoe Asif Faiz Preparation of Final Report: Jose Simas Nguyen Quan Trac Hector Garduflo Janice Molina Editing: Tables and Graphs Phillip N. Assis and George Tobar Translation: Spanish/English Janice Molina Introduction The present study was requested by the World Bank's Management Unit for Argentina, with the objective of identifying the principal problems related to water resources management and of proposing policy options to promote the sustainable develoment of these resources in Argentina. The study was prepared by a team of experts under the direction of Jose Simas. Qualified experts in the issue of water management in Argentina, including representatives of the Central and Provincial Governments, Users' Associations, University Professors, and members of Civil Society in general, also participated in the study through interviews, consultations and the start-up seminar. A partial list of these specialists and their institutional affiliation is presented below with the purpose of acknowledging their participation. However, the conclusions and recommendations are the exclusive responsibility of the study's leader, of individual consultants through their respective analytical contributions, and of the team who prepared the final report. iv The Group Responsible for the Study Thanks the Following Persons and Institutions for Their Participation and Collaboration Surname First Name and Title Affiliation Abihaggle Dr. Carlos Director. General Bureau of Irrigation, Prov. of Mendoza. Abraham Lic. Elena Maria Under-Secretariat of Environment, Ministry of Environment and Public Works. Province of Mendoza. Acufia Dr. Augusto Secretary of Environment. Province of Catamarca Arrillaga Lic. Hugo Professor. Faculty of Economic Sciences. UN Litoral Bemardi Ing. Alejandro Bureau of Water and Sanitation, Aguas Argentinas. Province of Buenos Aires. Bemasconi Ing. Inds Alicia Hydrologist, DAS Berra Estrada Dra. Graciela Coordinator, Institutional and Environmental de Pigretti Development Program. Environmental Legislation Component. SERNyDS Bonfanti Ing. Oscar Director, Provinicial Water Administration. Province of Chaco Bonet Inga. Cora Advisor. Secretariat of Water Resources SS, SERNyDS Bono Ing. Bruno V. Ferrari Coordinator, Institutional and Environmental Development Program (PRODIA) - Secretariat of Natural Resources and Sustainable Development - Office of the National President Bopp Ing. Armando Director, CELA: Center for Economics and Water Legislation, INA. SERNyDS. Bracamonte Ing. Pablo Luis Under-Secretary of Urban Affairs and Land Planning - Secretariat of Urban Development - Municipality of C6rdoba Bucich Lic. Noberto G. Acting Director, National Institute of Water and the Environment (INA), San Juan Headquarters. Province of San Juan. Cassavella Ing. Quim. Ana Maria Industrial Waste Control, DAS Cebollada and Geol. Madel Pilar Hydrogeologist, DAS Verdaguer Chambouleyron Ing. Jorge Luis INA. Province of Mendoza. Cldrico Ing. Miguel A. Director of Environmental Programming and Action - Province of C6rdoba Collazo Lic. Juan Manuel Executive Director. Matanza Riachuelo Watershed Committee C6rdoba Sr. Osvaldo General Coordinator, Argentina Mining Sector Project - PASMA 6 Secretariat of Industry, Commerce and Mining - World Bank. Buenos Aires. Coria Jofre Ing. Civil and Hidraulico. Daniel External Consultant. Province of San Juan Oscar Crespillo Ing.. Rauil President. Casa de Piedra Agency, Province of La Pampa. Day Dr. Jorge Department of Irrigation Management. DGI: Mendoza Enriquez Dr. Ignacio Consultant, Bureau of Water Policy, Secretariat of Water Resources, SERNyDS Enriquez Agdo. Ignacio National Bureau of Water Policy. Under-Secretariat of Water Resources. SERNyDS Esquivel Dra. Maria Esther Coordinator, Institutional and Regulatory Unit. National Water and Sanitation Works Agency. SERNyDS Fernandez Dra. Corina Coordinator, Water Policy Program. Secretariat of Water Resources, SERNyDS V Fioriti Lic. Maria Josefa Coordinator, Water Information Program. Secretariat of Water Resources, SERNyDS Fratti Ing. Ricardo Director of Hydraulics. Province of Santa Fe. Gianoni Ing. Luis Consultant, Regional Planning and Water Resources - Province of C6rdoba Gianoni Lic. Marta Elena Mercado Specialist in Environmental Law - Province of C6rdoba Gonzalez del Agdo. Nicolas External Consultant. Province of Mendoza. Solar Hernandez Agdo. Victor Guillermo External Consultant. Province of Mendoza. Huerga Ing. Miguel A. Secretariat of Agriculture, Livestock and Fisheries. PROSAP Jofre Ing. Daniel Oscar Coria Manager, CJ & Asociados, San Juan. Josh Inga. Iris National Director, Water Resources Administration. Secretariat of Water Resources, SERNyDS. Leontachini Ing. Gladys Chemical Engineer, DAS Levit Arq. Horacio G. IBRD Programs 4117 and 4273 - SUCCE Linares Ing. Juan Carlos Consultant/Supervisor of Executing Unit for IBRD Programs 4117 and 4273 - SUCCE Lucca Ing. Julio National Director of Navigable Waterways. Magnani Dr. Cesar Consultant. Under-Secretariat of Water Resources. SERNyDS. Massi Ing. Daniel A. Under-Secretary of Infraestructure for Development, Ministry of Environment and Public Works. Province of Mendoza. Morabito Ing. Jose Antonio Officer, Irrigation and Drainage Program, National Institute of Water and the Environment (INA), Andean Regional Center, Mendoza. Morin Ing. Juan Minister of Public Works, Province of Santa Fe Pardiflas Ing. Agr. Maria Inds Director of Environmental Coordination and Control - Under-Secretariat of the Environment - Municipality of de C6rdoba Pazos Lic. Jorge Alberto Program Coordinator. National Institute of Water and the Environment (INA). Andean Regional Center. Province of Mendoza. Piazza Lic. Rino Water Resources Commission. National Senate. Pochat Ing. Victor National Director of Water Policy. Secretariat of Water Resources. Secretariat of Natural Resources and Sustainable Development. Puliafito Ing. Jose Luis Presidente, Provincial Water and Sanitation Agency. Province of Mendoza. Rais Dr. Jorge President, ENOHSA Riveros Ing. Joaquin General Director, Department of Hydraulics. Province of San Juan. Rizzo Ing. Eduardo Salvador Bureau of Water and Sanitation (DAS) - Department of Water Resources - Province of C6rdoba Saldurea Ing. Luis Provincial Counterpart, PRODIA - Province of C6rdoba Vachino Ing. Adelmar Under-Secretary of Water Resources: State Secretariat of Natural Resources and Sustainable Development. Vargas Lic. Ram6n Advisor, Provincial Water Administration. Province of Chaco vi INDEX OF VOLUME I Introduction ........v Summary .......... ix Main challenges and ppportunities Waterpolicyframework An agenda for modernization 1. OBJECTIVE OF THE STUDY .1 Challenges and opportunities Modern water resources management: sustainable and integrated concepts 2. FRAME OF REFERENCE .6 Population Institutions Legalframework Limitations and opportunities 3. WATER RESOURCES AND REGIONALIZATION .9 Strong climate contrasts Abundance and spatial imbalance of surface resources An environmental and public health problem: aquifer contamination Regionalized view of water problems 4. USES AND MANAGEMENT .14 Drinking water and sewerage Water quality and pollution Floods Tariff scheme Externalities and environmental costs From fragmented management to integrated, modern and efficient management 5. TOWARD A NEW WATER POLICY .21 The challenge A constructive view Objectives of a new policy A flexible, realistic and regionalized strategy Regional strategy vii 6. WATER POLICY AND ACTION AGENDA .................................... 25 Water policy framework A national consensus for the XXI century The agenda and its priorities Action agenda by regions and provinces Next stage in implementation LIST OF BOXES 1. Challenges of the Millenium and Driving Forces ofGlobal Changes with Implications on Water Resources Management Policies 2. Key Roles and Functions for the Sustainability of Water Resources Management 3. Groundwater Protection 4. Grouping of Provinces for the Regionalization of Key Water Issues 5. Water Extractions (1993-97) 6. Typical Cases of Urban Water Pollution in Argentina 7. Managing Aquifer Over-Exploitation: Economics and Policy 8. Proposed Action Agenda LIST OF FIGURES 1. Distribution of Surface Water Resources by Regi6n 2. Per Capita Water Availability in Arid Provinces 3. Contamination Problems in Groundwater Used to Supply the Buenos Aires Metropolitan Area 4. Water Withdrawal for Consumptive Use Per Sector 5. Urban Access to Safe Water and GNP Per Capita ANNEXES: 1. Provincial Grouping by Regionalization of Water Resources 2. International Experience that may be useful to Argentina 3. Current Status of Irrigation in Argentina 4. Main Issues Covered by Provincial Legislation 5. Regionalization of Key Issues, Gaps and Policy Options 6. Proposed Action Program 7. List of Participants at Provincial Dissemination Workshops 8. Index of Volume II 9. Index of Volume III 10. Methodology of Preparation of Final Report 11. Government Letter of Acceptance REFERENCES CONSULTED (List) MAPS: Agroclimatic Regions Watersheds Grouping of Provinces by Regions for Regionalization of Water Resources viii Summary Main challenges and opportunities 1. With prudent management of public finances and a per capita income of over US$8,800, Argentina regained its place at the forefront of Latin American countries. However, water resources management remains disproportionately backward when compared to best regional and international practices. Thus, the modernization of water resources management is a key challenge, due to its implications on sustainable development, the economy and health. Thus, improving water resources management merits priority attention from national and provincial sector authorities as well as from society as a whole who should assume, responsibly and without delay, the cost of modernizing water resources management. 2. It is particularly alarming to note the ongoing, accelerated degradation of water quality. Arsenic and nitrate pollution in groundwater, one of the main sources of drinking water supply in some rural areas, is reaching dangerous levels due to its accumulative effect on health. Moreover, there are serious pollution problems in urban areas from the uncontrolled dumping of raw waste water. Coverage of drinking water and sewer services is still low, and there are numerous reports of growing problems in urban and rural drainage that have significant economic and social impacts. Irrigation systems, a key element for the growth of agricultural production in the country's arid zone, have low levels of physical efficiency and serious soil management problems, with a half million hectares affected by high levels of salinization and poor drainage. 3. In 1999, only 81% of the urban population was connected to drinking water networks and 38% to sewer networks. Basic sanitafion coverage and access to drinking water systems -with health controls-for the five million rural residents are significantly lower: 17% with water conducted by pipes and fewer than 3% with sanitary sewers. Paradoxically, irrational consumption and wastage in the large majority of drinking water supply systems require extremely high allotments of nearly 500 liters per inhabitant, per day, some of the highest in the world. 4. The irrigation sector, which accounts for 70% of all extractions for water consumption uses, has a very low level of efficiency - less than 40% - when compared with the experience of countries such as Spain, South Africa, Chile, United States, Australia and Brazil. It is therefore not surprising that traditional irrigation methods still predominate, and that the number of areas using modern irrigation systems is still insignificant. A symptom of this overall inefficiency is the fact that, out of 1.5 million hectares under irrigation throughout the country, one third have soil salinization and/or drainage problems. Problems of aquifer "mining" and vertical contamination of independent water tables and layers are very serious, such as in the Northern Oasis and the region of the Atuel River, in Mendoza. It is estimated that, if the current trend continues, these problems could have catastrophic consequences on the regional economy over a period of 15-25 years. Annual economic losses directly related to inefficiency in water resources management, in the categories of groundwater and irrigation alone, may be conservatively estimated at 1,500 million pesos. Apparently, under current macroeconomic circumstances, public policy is to defer necessary investments in order to reduce this loss to an economic level. In fact, this policy internalizes costs within society, transferring them to future generations. However, given the deterioration of problems, the issue can no longer be postponed due to the cumulative and accelerated effects and the growing difficulties in resolving them. 5. It should not be inferred from the above considerations that less importance is given to rainfed agriculture. This issue is not included in this document because it has already been covered in detail in another World Bank study (Environmental Pollution in Argentina: Problems and Options. Washington, D.C. October 1996). 6. The current multiplicity of provincial and national laws and institutions does not favor rational, coherent management of the country's water resources. The key role that the 1994 constitutional reform assigns to the Provinces, as the water authorities in their respective jurisdictions, is not being fully exercised. Moreover, no national laws have yet been enacted in the areas of water resources management and IX environmental protection which are in line with provincial legislation and respect public ownership of water in provincial territories. There is national jurisdiction over navigation, issues of international rivers and inter- jurisdictional commerce. The dominant feature at institutional level is the fragmented management of water resources and their sectoral handling by numerous national and provincial institutions, with different interests and focuses, which is the source of ongoing interprovincial conflicts. With recent reforms and the concession of basic utilities such as energy and water services, the institutional situation changed in size and complexity, with multiple private agents and numerous regulating agencies. 7. Although the sector's overall panorama appears discouraging at a glance, the country has sufficient means to reverse this situation. For example, the profusion of legal documents and their institutional correlations demonstrate the importance given to the water problem and is a reflection of provincial initiatives to improve water management. Furthermore, there is a long tradition of water rights legislation, especially in Mendoza, and of water decentralization and administration. These are essential elements for promoting the planning and modernization of water management. 8. Few places in the world have achieved a level of conjunctive use of surface and ground water resources such as that practiced in the valleys of Mendoza and San Juan. Public and private initiatives are also involved, but much remains to be done in order to incorporate the environmental dimension. Tariffs for usage and pollution need to be adjusted so as to ensure the infrastructure's optimum operating level and the sustainable use of the resource itself. With the opening of the economy in several regions, provinces such as La Pampa, San Juan and Catamarca have begun to benefit from the incorporation of modern irrigation technologies. 9. In recent decades, public investment in science and technology has been minimal. However, Argentina has centers for research, technological development and higher education that can support the integrated management of water resources. 10. In 1993, Argentina made an international breakthrough with the privatization of urban water and sanitation services in the city of Buenos Aires. Subsequently, all the larger cities and numerous intermediate- sized populations have decided to incorporate private operators to improve operational efficiency and increase investments. Although the Argentine model for the water supply and sanitation sector needs adjustments to optimize the state's regulatory function and create incentives and to create incentives and subsidies to promote the expansion of coverage among the needy, significant benefits have already been obtained in terms of the health quality of water and services in general, substantial increases in investments, and improvements in the population's quality of life. There are also examples of efficient management of public drinking water and sanitation services. Future modalities of public and private participation in these important services must take into account past difficulties, successful experiences and society's wishes. Water policy framework 11. The policy reforms necessary to modernize the country's water resources management require careful, joint planning over a period of no less than 10 years, as demonstrated by recent experiences in Mexico, Chile, Australia, Turkey and Brazil. However, it appears that, after many years and numerous tries, the essential factors for social and political consensus on water management are now materializing and conditions are ripe for beginning the most pressing actions. There are good examples in provinces such as Mendoza and San Juan, where various basic, solid principles exist. Improvements are needed in the administrative capacity of management that could serve as good references for other provinces. 12. However, at the level of the current water policy framework and of the legal and institutional capacity to effectively implement it, the study identified important conceptual gaps and institutional deficiencies that hinder the efficient, sustainable development of Argentina's water resources. To fill these gaps and make up for these deficiencies, it is recommended that measures be taken, such as: the establishment of an incentive framework for efficient water use, the setting of a tariff level that ensures sustainable and x efficient use, and the promotion of competitive mechanisms for the water market after existing uses have been regulated and the corresponding registry has been established. Moreover, the study suggests that a modem water policy should be placed within the overall framework of sustainable development stated in Agenda 21 and in the Dublin Principles. It is felt that the agreements reached at these two important international conferences provide the principles and best practices for the sustainable development and management of water resources. Thus, it is proposed that modern water management be supported by three pillars: (i) environmental, through which, with integrated water resources management up to the nearest possible local level, the aim is to halt and reverse the deterioration of the environment and natural resources; (ii)economic, with the promotion of sustainable production to ensure the rational use of natural resources and increase productivity, by means of transparent, efficient processes; and (iii) social, with which actions are proposed, aimed at contributing towards overcoming the social gap and improving the living conditions of the population, particularly in rural areas and smaller urban centers. 13. It should be noted that many elements of modem water policy already exist on paper but lack the incentive framework to be implemented. In Mendoza, for example, good principles for setting irrigation water tariffs exist in legislation, but price levels are nominal since they are related to historic values that do not reflect economic costs. Moreover, the chargeability or collection of such tariffs is low --55%-- and the current system does not offer incentives to correct this problem. In Mendoza and San Juan, conjunctive use of surface and groundwater is based on sound principles, including charges for use, but it lacks environmental elements to protect against contamination and actions to induce or increase aquifer recharging. On the other hand, in the drinking water and sanitation sector, through the private sector reform and participation program, water tariffs are gradually nearing their marginal costs through market competition mechanisms introduced in bids for drinking water services and the periodic price adjustments established in the contracts. In most drinking water concessions, the tradition of not paying for water, which is so common in Argentina, has been reversed, with payments of over 85% on the first billing. This has been possible due to the rapid improvement in services and the implementation of contractual instruments allowing service to be cut off for lack of payment. These elements of the water situation in Argentina are a reflection of the implications of ever-present economic policies, characterized by attempts to maximize social and political impacts. There have also been difficulties from which much can be learned in order to propose the future participation of the private sector, the best means of public regulation of these services, and the gradual manner in which private participation could evolve. 14. The study identified the main water policy gaps that conspire against the modernization of water resource management in Argentina, which ideally should be handled under the "Minimum Prerequisites for Environmental Protection" framework law (required by the 1994 constitutional amendment) and the "Water Resources Management" framework law (discussed in this document). To facilitate presentation, these public policy elements may be grouped into four large areas: (i) policies that promote the saving and efficient use of water; (ii) policies aimed at the environmentally sustainable use of water resources; (iii) policies that provide legal security in rights to use water and in conflict resolution between administrative jurisdictions and users; and (iv) policies to deal with social equity problems, that guarantee the needy population universal access to drinking water and sanitation services, and other "public goods" such as urban and rural drainage and mitigation of the effects of floods. 15. The principle of inherent rights (principio de inherencia) in Argentina, meaning that the right to use water is inherent to ownership of the corresponding land, brings about inefficiencies. To optimize economic efficiency in the use of this resource in arid zones, as in the examples of Australia, USA and Mexico, the usage right should be separate from the land. Moreover, especially where water is scarce and its opportunity cost is high, the price of water (due to the right to use a natural resource as well as the costs that must be incurred to make the resource available to the end-user) should reflect its social and economic costs, respectively, and the volumes actually allocated and consumed. To promote the environmentally sustainable use of water (surface and groundwater), it should be administered by users at the most decentralized level possible, generally at the basin and/or aquifer level. In the case of groundwater, it would be preferable to carry out extractions compatible with recharges, and in general to ensure minimum economic volumes, favoring human supply at rational levels. The legal security of usage rights and the ability to resolve conflicts among users in a practical manner, are essential conditions to attract private investments while generating the xi financial resources that are essential for the institutional sustainability of the water resources management system. The registration of uses and users in all provinces is therefore essential, as is the social acknowledgment of the advantageousness of paying a fee for the right to use water, and the registration of sources of contamination, with the acknowledgment of corresponding social and environmental costs. Due to its strong, positive externalities in terms of health, and for reasons of social equity, well-focused policies should be established to assure universal access to drinking water and sanitation services for the needy. Thus, social tariffs should be adopted that are compatible with willingness to pay or ability to pay, when the former is difficult to estimate, as well as direct and/or cross-subsidy systems preferably to finance non-recurrent cost components. 16. A Water Resources Management framework law would contribute to rationalizing investments and all types of actions related to water resources management. In addition, apractical institutional model should be proposed in the provinces, based on: (i) establishment in each province of a single coordinating authority dealing with water resources management, skilled in matters related to both quality and quantity; (ii) promotion of associations of water resources users, granting them greater responsibilities in the administration, operation and maintenance of distribution systems, including water quality control. At the same time, it would facilitate the functions of charging tariffs or fees, and even the function of penalizing non- payment (as shown by successful experiences in Mexico, Australia and Turkey); (iii) strengthening of provincial water administrations in their role as technical-economic regulators, responsible for the prospective vision of water resources and the system of generating and analyzing hydrometric and climatological data; (iv) support to provincial environmental institutions in the application of water quality regulations; (v) taking into account the need to ensure the integrated management of aspects of the "quality" and "quantity" of water resources, a legal-administrative framework must be found so that permits for water use and for dumping waste water are granted by the same provincial water authority - in coordination with the environmental authority; (vi) with strong initial support from the federal government and provincial adherence, creation of basin and/or aquifer agencies, especially in those areas with serious inter-sectoral and/or inter-jurisdictional aquifer conflicts. (Mendoza's experience with regard to the creation of Consultative River Basin Councils for each of its six principal rivers could be useful.); (vii) promotion and institutionalization of the preparation and periodic updating of the water resources management master plan; and (viii) redefinition of the federal government's principal role in water resources management, either by strengthening the current Under- Secretariat of Water Resources or by creating a national water entity or council with regulatory and policy functions, with majority participation by provinces. When designing and implementing the above-mentioned measures, one should keep in mind that the federal government's principal role would be to mediate inter- jurisdictional conflicts over the quality and quantity of water: granting incentives to improve water usage as well as to rehabilitate and make full use of existing water infrastructure; and to establish and implement, by mutual agreement with the provinces, both a regulatory and overall policy, and minimum water quality standards, information systems and programs for the formation of provincial capacity. 17. To get this set of reforms underway, a major national consensus oni the country's water policy would be needed, along with strong support by the federal government, and contributions from water users and polluters. For example, if an initial tariff for use of raw water were established, equivalent to one- thousandth of a peso per cubic meter of water, around 30-40 million pesos per year could be generated. Water pollution (domestic and industrial) charges could begin, in nominal amounts, using the forfeit system as has been done successfully in Mexico. Subsequently, as the registration of users and polluters is completed and more detailed analytical assessments are made, the proposed initial values may be adjusted. Most of the resources generated (for example, around 80%) should be administered in the provinces by basin and aquifer organizations to carry out efforts aimed at the use and conservation of water resources that benefit the water units where resources are generated. The remaining resources could finance: the regulatory function of national/provincial water resources organizations, the maintenance and expansion of the hydroclimatic data network, water resources research and development, and the training and improvement of human resources for the management and sustainable use of water resources. 18. It should be acknowledged that, despite the consensus already reached, the implementation of the proposed elements of the economic policy for water involves enormous practical difficulties. To overcome them, a transition period should be proposed, along with a system that is both flexible and adjustable over xii time and in which lessons learned may be incorporated as reforms materialize. For example, headwaters provinces (where most water resources originate) may be opposed to the reform if they maintain an essentially provincial vision and interests based on the ownership of natural resources as granted to provinces by the national constitution. It is therefore essential to proceed with the establishment of a legal and environmental framework that would provide the foundation for the regional alignment and adjustment of provinces' specific legislations. Throughout this process, the financial resources and guarantees of the federal government for the construction of water works, as well as for the financing of programs that promote the reform itself, will be key elements to promote and consolidate the reform. For the design of this type of transaction, with strong federal support, models and experiences from federal countries such as Australia, Canada and Brazil, as well as more centralized countries such as Mexico and France, may be used. An agenda for modernization 19. Numerous limitations, especially scattered national and provincial institutional arrangements and weakness in the application of existing laws, might make one think there are insurmountable obstacles in the path of an in-depth reform of water resources management. However, with a pragmatic focus and a sufficiently flexible, realistic strategy, with simultaneous actions, it would be possible to implement a reform beginning with various programs and concrete actions that provide short-, medium- and long-term solutions to the key issues identified. 20. Among the key issues demanding solutions, some already have the implicit or explicit consensus of institutions, civil society and users on the actions required. With this in mind, a set of policy reforms and actions are proposed, as summarized in the following agenda. First priority 21. Regulatory framework. The Under-Secretariat of Water Resources (SSRH) must invite provinces, civil society, users and water polluters to discuss the structure, basic principles and essential issues of the Water Resources Management framework law. In this way, a major national consensus would be reached, so as to accelerate its approval and regulation. This draft law would establish a modem legal framework of principles, roles and duties, processes and instruments that form the institutional framework of the integrated management of the country's water resources. This consensus could take the form of a National Policy Agreement with the provinces that would include: (i) creation of the Federal Water Council; (ii) commitment by the provinces to have single water authorities; (iii) commitment by the provinces to establish an ongoing, systematic process for planning the integrated management of water resources and to formulate the first version of their Master Plans as soon as possible; (iv) federal support so that provinces can meet the above commitments. In parallel with preparation activities for the Water Resources Management framework law, it would be useful to promote the Law of Minimum Prerequisites of Environmental Protection and, at the same time, to begin the process of adjusting and modifying provincial legal schemes, so that they can offer greater consistency and uniformity with federal laws. 22. Communication and citizen participation. It is equally essential that the country promote a major program of information and social mobilization dealing with the sustainable use and protection of the country's water resources, specifying individual rights and obligations and those of the state at its various levels of administration and government. This program would be carried out by means of a large meeting of national, provincial and local authorities, public and private agents, the scientific community, groups of users and polluters, and civil society in general. Emphasis would also be placed on children, through agreements with the national and provincial education system. To better specify the focus and implementation methodologies, recent experiences may be used such as those of Brazil and Mexico and those of several European countries that have faced this challenge in recent years. xiii 23. Strengthening of centers of research, technological development and higher education. It is essential to strengthen the country's scientific and technological capital with regard to water resource management and to utilize foreign expertise only when it cannot be found locally. Simultaneously and in the short term 24. Water Resources Management Master Plan. In order to achieve rational use and preservation of water resources in the Republic of Argentina, and in the pursuit of consistent, sustainable improvements in the quality of life and the development of its population, it is necessary to begin the preparation of a Water Resources Management Master Plan as a tool for programming, budget allocation and management control. The Master Plan, carried out jointly with provinces and existing inter-jurisdictional agencies at the basin level, should benefit from an in-depth, updated understanding of the physical, social, institutional and economic realities of the country's varied geography and should be conceived as being eminently dynamic, with periodic updates. The Plan would include an assessment of impact on water quality; identification of conflicts over water use; economic value; water supply, availability and demand, with a 25-year planning period, to be articulated through a planning model that will allow an identification and prioritization of actions to be carried out. 25. Safe water supply and aquifer protection. Aquifer protection measures must be urgently imposed. These aquifers constitute a strategic reserve and a provincial and national asset that is quickly being lost due to contamination. It is also a matter of protecting public health from the risks of contaminated sources of water supply, particularly in rural areas. Aquifer protection should include technical, economic and institutional efforts. First, there is an urgent need to clog and seal abandoned wells that are contaminating water tables and successive groundwater layers in various provinces, such as in the Northern Oasis of Mendoza, and endangering the province's socioeconomic life. 26. Another urgent program is the protection of water supply sources-without risk of toxicity-for the rural population and small cities. For this, it is imperative to establish protection perimeters around. groundwater sources, beginning with those provinces where this problem is already serious: Santa Fe, C6rdoba, Buenos Aires, Catamarca, Mendoza, San Juan, La Pampa and Jujuy. For cases of natural contamination with arsenic and/or fluorine, with higher values than those indicated by the World Health Organization for human consumption, the feasibility of dual systems that separate water for consumption (ingestion) from other uses could be analyzed, as an alternative to the construction of large aqueduct systems. Likewise, in the Colorado River basin and in the provinces of Mendoza, Chubut, La Pampa, Neuquen, Rio Negro, Santa Cruz, Tierra del Fuego and others there is also surface and groundwater contamination from oil drilling. In areas with strong development of complementary irrigation (Central-Pampa Region and Buenos Aires), training, awareness, monitoring and control programs should be accelerated in order to prevent widespread contamination, especially by nitrates. The formulation of this program could use experiences from various European countries that now consider this the most important problem in improving the management of their waters. However, priorities should be established that are suited to a developing country such as Argentina, such as first dealing with short-term problems like biological contamination produced by untreated waste water which has an immediate effect on health. 27. Reclamation of lands with drainage and/or salinization problems. The reclamation program for these lands (half a million hectares, i.e., one-third of the country's irrigated area) is a key step in the modernization of the irrigation sector, aimed at recovering its competitiveness. For the preparation and implementation of the program's technical, financial and institutional components, the recently and highly positive experiences of northwest Mexico may be utilized. Nearly 600,000 ha in this region are already salinized due to poor irrigation practices, of which 55,000 ha have been recovered since 1997 at an average cost of US$730 per hectare. This experience, in its financial, technological and programming aspects, may be of great interest to Argentina. 28. Modernization of water resources management technologies. The extent and lack of structured data and information on water resources leads to inefficient management. It is essential to quickly overcome delays in designing and implementing national and provincial information systems for water resources management, including the operation of networks, extraction, processing, planning and making information xiv available on hydro-meteorology, hydro-geology, and water quality. This implies the systemization of resource and management data at national and provincial level, as well as the updating and modernization of records of water rights and uses. The systems would include advanced technologies for the integrated management of resources, particularly those for aquifer simulation, aimed at their protection. The modernization program would assign priority to provinces with the most acute environmental problems (including Mendoza, San Juan, Catamarca, Tucuman, C6rdoba and Santa Fe). To formulate this program, the best practices in water resources management in the world and in Latin America (especially Brazil and Mexico) could be analyzed to make necessary adaptations and adjust them pragmatically and realistically to the Argentine context. This is a program that should be made operational as soon as possible. In the medium term 29. A drastic reduction in wasted water. There are numerous reasons for wastage in different drinking water and irrigation systems: technical, economic, institutional and cultural. Therefore, a reduction in the amount of water wasted would require the implementation of an interdisciplinary and multisectoral program. Taking into account the ongoing decentralization and privatization in the water and sanitation sector and in irrigation districts, the program's key components should include: charges of sustainable fees for drinking water services and water rights for irrigation and industrial use, the strengthening of regulatory agencies in the various water user sectors in terms of economic and contractual issues and of ensuring quality service; and the education of the various sectors of users about saving and conserving water resources. 30. Modernization of the irrigation sector. The principal objective of a modernization program for the irrigation sector will consist of returning its competitiveness, without which efforts to improve efficiency in water resources management would be useless. The program would also be multisectoral and involve such components as: the training of farmers both in technology and management; the organization and strengthening of users' associations; and financial structuring for credit to farmers. The well-known experiences of Mexico and Spain, stemming from irrigation district transfer projects, would be useful in designing and implementing this program. These and other international experiences show that irrigation system users have few financial means to deal with the construction of headwaters works. In this case, a certain degree of subsidy and financing using public funds is recommended, to be returned by users in the long term based upon infrastructure fees. With regard to investments for modernizing irrigation systems and recovering salinized lands, a certain degree of subsidy is also recommended and users should also participate in the financing of required actions. In contrast, the operation and maintenance of works should be the exclusive responsibility of users. 31. Rural and urban drainage. Mitigation of the devastating effects of recurrent floods in rural areas would require a program to mobilize various policy instruments: introduction of the concept of soil use and conservation within the overall framework of land-use planning; proper management of basins without sea outlet; adjusting rural roads infrastructure to mitigation needs; using the positive experiences of rural road maintenance consortia; and establishing sustainable financial mechanisms for maintenance. Urban drainage would also require the mobilization of various policy instruments such as the modernization of urban legislation and of municipal regulations and ordinances on the use of urban areas, an improvement of financial mechanisms and institutional strengthening. 32. Heavyflooding. Heavy flooding of water courses in Argentina's coastal areas periodically affect large farm areas for long periods of time. A similar situation occurs in certain basins without sea outlets. In order to promote agricultural and livestock production on lands with significant risk of flooding, it is proposed that non-structural measures be instrumented such as risk mapping and "production insurance." The cost of the insurance policy covering production losses caused by flooding would be inversely proportionate to the flood recurrence period in the zone in question. The state could be responsible for the value of the policy until the self-insurance fund is established with the annual contributions of farmers (for example, during a ten- year period for those zones with a ten-year recurrence period). Another complementary measure, already underway, is the implementation of alarm systems that help to minimize economic losses. 33. Control of water pollution. Pollution reduction in rivers, lakes, reservoirs and aquifers would require a broad multisectoral program, to be developed in agreement with national and provincial authorities, xv the private sector and stakeholders. This would be the chance to revitalize Basin Committees and to reach consensus on policy instruments to combat water pollution: analysis of the appropriateness of implementing charges for dumping rights, establishment of municipal and industrial dumping regulations, solid waste management, and financial mechanisms to help prevent pollution. In this regard, the experiences of COIRCO in Argentina, as well as of Brazil and France, could be particularly useful. 34. Improvement of basic information and preparation of criteria and guidelines to support Water Resources Management. An important support to the implementation of proposed actions would be the improvement of the analytical base, including: (i) measures to prevent natural contamination of aquifers; (ii) preparation of evaluation criteria and methodologies for rational selection of projects; (iii) application of technologies for efficient industrial water use, treatment and dumping of waste water, suited to Argentina's conditions; (iv) survey and classification, based on remote sensing images, of salinization and waterlogging problems; (v) prospective planning studies in selected basins, which tentatively could be those of the Salf- Dulce, Desaguadero, Colorado, and Bermejo rivers, and those of C6rdoba; and (vi) preparation of realistic health and environmental regulations for drinking water and for the dumping of waste water. xvi 1. OBJECTIVE OF THE STUDY development were identified. However, to keep the study focused, five main issues or problems Water resources in Argentina constitute a were selected: (i) legal and regulatory; (ii) significant support to economic development, economic and financial; (iii) groundwater; (iv) but they are in a critical situation due to water quality and pollution; and (v) irrigation. inefficient management, with legal, institutional, The first two issues (legal/regulatory and economic, technological and environmental economic/financial) are intersectoral, while the limitations. latter three are more specific to subsectors that require immediate attention. The Bank's The aim of this study is to analyze these comparative advantage in terms of its regional limitations and identify policy options to and global experience in this subject was also promote the sustainable development and taken into account, incorporating international management of water resources in the Republic best practices in the subject of water resources of Argentina. management. The work has been prepared with the assistance The study is presented in three volumes: Volume of a top-notch professional team, with I, Main Report, and two other important representatives of the federal and provincial supporting documents: Volume II (Integration governments. At federal level, the Under- and Analysis Report); and Volume III (Thematic Secretariat of Water Resources participated. Annex), which groups the nine thematic studies2 Irrigation issues were handled by the Secretariat that formed the basis for identifying key of Agriculture, Livestock, Fisheries and problems in the country's water resources Nutrition (SAGPyA). At provincial level, management, in order to propose policy options. provincial ministries and agencies were responsible for water administration.1 Since the study's main audience is in Argentina, the report was originally written in Spanish. The study is aimed at two audiences: first, the Volume II, which is a detailed working government, i.e., the authorities who make document, contains parts in both English and decisions and federal and provincial legislators. Spanish, depending on the respective authors and The secondary audience is comprised of World will be left in its original version. Volumes I and Bank staff and administrators who deal with III were also translated for publication in operations and policies in Argentina's water English. sector. Chapter 2 of this volume presents the Frame of -rhe study's general objective is to summarize ,Reference for the socioeconomic, legal and current knowledge of sectoral issues and propose institutional aspects of water resources policy adjustment options which are the key to management in Argentina, recommending the improving water resources management in adjustments needed for more rational, coherent Argentina at federal and provincial level. organization. In addition, it is hoped that the study will offer a Chapter 3 presents a brief, general analysis, by positive, timely contribution th the water sector regions, of the principal water resources issues for the preparation of the next Country and problems, with reference to their distribution Assistance Strategy. in terms of space and time, with special emphasis on water pollution. The scope of this work was defined based upon the workshop held in Buenos Aires in February Chapter 4 on Uses and Management presents a 1999, with the participation of federal and diagnostic of management in each of the most provincial governments. At this time, numerous problems that limit the efficient use of water 2A. Legal, Regulatory and Institutional Framework of Water resources and hinder their sustainable Resources; B. Economic and Financial; C. Groundwater; D. Irrigation in Argentina; E. Water Quality Problems in the Province of C6rdoba; F. Drinking Water and Sanitation Without meaning to omit others, we wish to highlight the Sector in Argentina. Review and Strategy; G..Lessons from participation and assistance of sectoral experts and staff in International Experiences; H. Concept Document; and 1. the Provinces of Mendoza, Cordoba, Chaco, Buenos Aires, Terms of Reference for Water Resources Master Plan Catamarca, San Juan, Santa Fe, Tucuman, Rio Negro, (PMRH) Neuquen, Salta, La Rioja, Misiones, and Entre Rios. 1 important uses of water and of environmental GDP. It is strategic to attack as soon as possible tariff aspects. The most salient the growing problems associated with these recommendations on the rationalization and challenges, since costs are also increasing and modernization of uses, as well as the protection future solutions, due to cumulative effects, will of resources, are also indicated. surely be more expensive and difficult. Providing safe water and sewer services to Chapter 5 analyzes the challenges inherent in disadvantaged populations in suburban and rural opportunities to make adjustments to sectoral areas is an extremely important challenge in the policy. fight against poverty and unemployment, Moreover, protecting poor populations from the With the objective of encouraging debate on a effects of floods in a country such as Argentina new water policy in Argentina, Chapter 6 is another important element in the fight against proposes a framework for water policy options poverty. and suggests the next stages of a possible action program. Modern Water Resources Management: Sustainable and Integrated Concepts Finally, it should be noted that, since it is an "Executive Summary," Volume I must be brief The concepts of sustainability and integration of and limited in terms of its number of pages. WRM are relatively new, having arisen in the More specific details can be found in the 1 970s. Nowadays WRM is a cross-cutting thematic reports in Volume Ill. theme that involves areas such as economics and finance, social, environmental, political and institutional issues and options. Moreover, Challenges and Opportunities WRM is a subject that encompasses different levels of government (national, provincial, and The modernization of Water Resources local) and also involves interests of public Management (WRM) is a key challenge for the agencies, the private sector and the entire civil start of the new millennium. The modernization society. There are functions that are typically the of Argentina's WRM has implications for concern of the public sector, and others that ofstargenina'se WRvelopment, tha imicaions f, could be better handled by the private sector. sustainable development, the economy, health, and the fight against unemployment and poverty, During the last 20 years reforms were enacted in and therefore merits considerable attention both from federal and provincial sectoral authorities water, regulatory and stitutional legislation in and romsocetyas whoe. ll takholers many developing countries (France, Canada, and from society as a whole. All stakeholders Australia, Spain, United Kingdom) and similar must face, responsibly and without delay, the reforms are more recently advancing in several challenge of carrying out efficient WRM. Latin American countries (Mexico, Brazil, Chile, Venezuela) and other new, emerging economies The dawning of the new millennium, together (Israel, South Africa, Turkey). with changes in provincial and federal ( governments, brings with it a framework for The traditional "Water Institutions" (1880-1970) reflection on the challenges and opportunities were designed to accomplish a very important for seeking solutions to social, economic, development mission whose main objectives environmental, financial and political problems, were linked to developing new water sources and many of which have implications on WRM expanding the coverage of "water services" policies. There are also driving forces (water supply and sanitation, irrigation, promoting global changes which cannot be hydropower generation, etc.) to benefit new ignored and which offer possible opportunities users. In that 100-year period, these new users and solutions which surely apply to WRM. (See grew more than twenty- to thirty-fold in certain Box 1). countries. These water institutions or agencies were primarily dedicated to water services and The major challenges of development, also "administering the supply." At the beginning of related to water resources, include poverty that time, the water resources were plentiful, alleviation, the sustainable use of water relatively easy to obtain, not affected by resources, and the need to reduce the high costs contamination, and with relatively low stemming from externalities whose preliminary development and administration costs. estimates reach annual amounts of over 1.0% of 2 Over the past 20 to 30 years, resources became scarce (in terms of quantity and quality), difficult and complex to obtain and conserve, and much more expensive to deliver and expand. A new concept came in place, shifting from the "management of supply" to the current "management of demand." Private operators of water services also came onto the scene and somehow added complexity to the new WRM functions. Box 2 provides a hypothetical and comprehensive outlook of the key roles and functions of the modem concept of WRM. The functions are grouped into four main categories and the possible roles of Government (Nation and Provinces), private sector and organized civil society are shown. The linkages and interactions among the four categories are indicated with arrows. These concepts are key elements of an agenda to modernize the WRM at national or provincial level. 3 Box 1. Problems, Challenges and Driving Forces of Global Changes CHALLENGES OF THE MILLENIUM AND DRIVING FORCES OF GLOBAL CHANGES WITH IMPLICATIONS ON WATER RESOURCES MANAGEMENT POLICIES PROBLEMS AND Possible Implications OVERALL CHALLENGES * WATER SHORTAGE Strategic development problem due to unbalanced distribution of quantity and quality * ACCELERATED Serious problem affecting strategic sources of ground and surface WATER POLLUTION waters, with strong, negative externalities * FIGHT AGAINST Issue with implications on the definition of policies to allocate, POVERTY AND invest in and provide services to the poor UNEMPLOYMENT * UNSTABLE Implications on infrastructure needs for poor populations URBANIZATION BY DISADVANTAGED POPULATIONS * FREQUENT FLOODS Chronic situation with strong social, economic and financial implications that affect the country's most populous regions * GLOBAL CLIMATE Will surely have medium-term implications on WRM. Monitoring CHANGE is needed to more precisely assess risks as well as to establish measures to mitigate impacts FORCES DRIVING Possible Implications and Opportunities OVERALL CHANGES * RAPID Opportunity to modemize monitoring, management of water DISSEMINATION OF resources INFORMATION AND KNOWLEDGE * TECHNOLOGICAL Opportunity to improve economic efficiency, mitigate problems, INNOVATIONS etc. * PRIVATIZATION OF Opportunity, with change in public authorities (federal and URBAN SERVICES AND provincial), to change from role of "businessman" that of promoter REDEFINITION OF and regulator ROLE OF THE MODERN STATE * OPENING OF Global and regional phenomenon (MERCOSUR) with implications INTERNATIONAL on comparative and competitive advantages requiring attention in COMMERCE WRM * GLOBALIZED Opportunities for international private sector participation in FINANCIAL investments and services, and need for the government to design INTERCONNECTIONS and implement proper mechanisms to regulate such participation * CHANGE IN Will surely affect working relations, social security and urban POPULATION'S AGE services, including water and sanitation COMPOSITION 4 Box 2: KEY ROLES AND FUNCTIONS FOR THE SUSTAINABILITY OF WATER RESOURCES MANAGEMENT INTEGRATED WATER SERVICES F WATER EN VIRONM ENTAL MANAGEMENT & Functions AD M INIST RAT ION Functions MONITORING (W ater Authority) Functions Functions _____ _____ ____ _____ _____ ____ _____ __ - C o nse,,.. c,- 2 Policy fssation and i I Legal & regulatory functions - Environmental Protection 2.St-ategic water planning 2. Lass & regulatioss 3 Database management SUPERVISIONiREGULATORY enforcen cut P o S 4 Supervision of river basin ENFO RCEM ENT 3 Confliet reoluoteti f Sources m anogem ct - H ydropow er 3 Supervision of wy atcr resources usoe lrigatioo 4 Requests & permits filing - W otcrshed managem ent (surface and ground a oter) -Water soppls & sanitatio 5. A uthorizing/deno ing perm its & erosion control 6 Econom ic studies - N avigation to 7 Licensing new projects - Flood protection --w ithdraw ws ater - Setting water-related standards 8Analytical base gathering - Land use s ater proteetion -- dispose of effluents - C lim ate related 6. Management and operation of - M onitoring - t ydrom etric m easurem ents - Setting swater ervice standards the register of v ater rights and G Water qoatr - Uspdating datahose - D atahase m anagem ent 9 Supnrvinio r-nss = -- Consultat.on - Surface water Dissemination ofuse - formation dissemination Groundwater CONSTRUCTION/ -- Granting riohts -Bulk water fees OPERATIO N/M A INTENA NCE 7--Graundwting righto s - D isposal fes - HyHdropower gcneration 7 0 roonds seer perm its I0 Inform ation disnsemination _ - Irrigation t Licensing. permits sanctions - W ater & sanitation _ 9. W atn r rights transfers & - Flood protcetion canecltations Rural drainage 10. Abstraction & disposal fees - Urhan/storm drainage coeleetion - River navigation Function: Public Functions: Public, Private Functions Public Function: Public (Services Role: Provincial Role: National, Role: National Roles3 National and Provincial and Civil Provincial Society Source: J. Simnas in "Planejamento de Recursos Hidricos," 1988, modified 5 2. FRAME OF REFERENCE Other agencies at national level dealing with water Although there is general consensus about the need resources include: under the MIyV, the Secretariat of for sustainable development of the country's water Public Works with the flood program in the Litoral resources, there is no consistent, coherent and and Northwest, in charge of coordinating flood sustainable policy for water management at national emergency efforts, handling allocations and level. This situation is closely related to the political administering and coordinating the execution of credit and administrative organization of the Republic of funds, and the Secretariat of Transportation which Argentina which is based upon a federal system of oversees the Under-Secretariat of Water and Port government, comprised of the central authority, 23 Transportation; the Ministry of Economy whose provincial jurisdictions and 1,924 municipalities, with Secretariats of Agriculture, Livestock, Fisheries and the important constitutional characteristic that Nutrition, and of Energy handle environmental provinces have ownership of water in their respective components and coordinate irrigation and jurisdictions. Although this system causes difficulties hydroelectricity, respectively; the Ministry of Social in the application of general measures, at the same Development and Environment which oversees the time it has the advantage of enabling each province to Secretariat of Sustainable Development and not only maintain oversight powers, but to receive Environmental Policy; the Ministry of Defense which needs through municipalities and be responsible for oversees the Naval Hydrography and National executing the future "minimum prerequisites" laws on Meteorological Services; and finally the Ministry of environmental and WRM issues. Foreign Relations, International Commerce and Religion is in charge of matters related to Argentina's projected population for 1998 and 2000, international watersheds and rivers. The efforts of all based on the 1991 census, indicates a total of 36.1 these offices, lacking inter-institutional coordination, million and 37.0 million inhabitants, respectively. is the cause of constant overlapping of functions and The population's distribution throughout the country, jurisdiction, at times leading to confusion between the which is comprised of 23 provinces and the Federal technical and political. Cap.tal, is highly unequal. The country's average population density is 12 inhab./km2, but the Federal In the provincial sphere, most provinces have Capital and the Province of Buenos Aires hold nearly agencies in charge of administering water resources, half of the country's total population, with a density but their nature and hierarchy are varied. There are of around 50 inhab./Ikn2, while several provinces administrations, authorities, bureaus, departments and have a density of fewer than 3 inhab.lkm2 (Santa even ministries of ecology and environment. Units Cruz, Rio Negro and Chubut in Patagonia, Catamarca also arise as the product of emergencies and therefore in the Northwest and La Parnpa in the center of the do not carry out policies that are previously agreed or country). coordinated with other areas. Institutions Moreover, within the provinces there is an overlapping of missions and functions caused both by Water resources management in Argentina has been the complexity of the institutional structure due to the handled by agencies in three spheres: national, diversity of agencies responsible for water resources, provincial and river basins. The various levels of and by the appearance of private operators and public responsibility of the Public Administration at service regulatory agencies. national, provincial and inter-jurisdictional levels can be seen in the following paragraphs. At interprovincial level, the use of water in river basins covering several provinces is typically a source During the preparation of this report (October 1999), of ongoing conflict. Its regulation, according to at national level, the functions of the Under- constitutional provisions and Supreme Court Secretariat of Water Resources (SSRH), now a branch decisions, should be subject to interprovincial or of the Secretariat of Public Works (SOP) of the regional treaties. Thus, coordinating agencies began Ministry of Infrastructure and Housing (MIyV), were to form before 1969, with the creation of ten River to: propose and execute policies, programs and Basin Committees. In principle, these agencies projects aimed at achieving sustainable development; fulfilled the objectives for which they were created. propose and promote strategies aimed at integrated But they gradually became weakened due to their management of watersheds; and evaluate and promote inability to resolve major jurisdictional conflicts over the setting of regulations aimed preserving and the administration and auditing of their financial protecting the country's water resources. 6 resources and fundamentally due to the lack of used on land originally associated with the volume of financial autonomy. water granted. As a result of this problem, only three formally The predominant feature at provincial level is that of constituted and operational committees remain: the rather profuse legislation lacking systemization, Inter-jurisdictional Committee of the Colorado River which is a cause of legal insecurity, lack of incentives (COIRCO); the Regional Commission of the Bennejo to save water, and intersectoral reallocation through River (COREBE); and the Inter-jurisdictional transfer or purchase of rights. The multiple sectoral Authority of the Limay, Neuquen and Negro River provisions often create overlapping functions, the Basins (AIC). Much of their activity continues due to collision of responsibilities and contradictory the financial support they are able to obtain through regulations that favor non-compliance with the law. contributions from hydroelectric generation in the It should be acknowledged, however, that all these case of AIC and contributions from jurisdictions and laws and regulations are evidence of the provinces' the federal government in the case of COIRCO, effort to resolve their own water problermis and thus which clearly indicates the importance of obtaining are the legal expression of the principle of "dealing sustainable funds for the success of such initiatives. with water matters at the lowest possible level." (See Annex 4). Since the large river basins are interprovincial, or serve as boundaries between provinces or Limitations and Opportunities jurisdictions, conflicts persist and worsen. Recent efforts by the national authority have brought Scattering is, without a doubt, the dominant feature of provincial authorities together to sign treaties aimed the country's institutional situation with regard to the at solving conflicts in the basins of the Picasa lagoon; management of its water resources by countless of the Pasaje - Juramento - Salado river; of the Sali- public agencies dealing with water resources Dulce river; and of the Abaucan - Colorado - Salado management. river. First, the constitutional provision under which Legal Framework ownership of natural resources is granted to provinces should be respected, and consequently a framework law must be agreed upon, under which necessary At national level, Argentina's water resources policy gui s be issuedfr .in a rational is based on constitutional provisions that reaffirm to water use. For example, it is currently difficult to provinces all powers not delegated by the bendrprioritieseonmwateriusesinuorderltodifcorporate Constitution to the Federal Government as well as the non-traditional water uses such as environmental and provinces' original ownership of natural resources recrational uses and incpat environmental use existing in their respective territories, with surface transfer water rights to uses with greater social, and ground water having the character of publicly- eronmen andr economic benefit, and encage owned assets. In addition, the Federation is granted efficient water use. This stumbling block can only be Jurisdiction over navigable interprovincial rivers and overcome with the enactment of the Water Resources international waters. There is no Water Code or Law Management framework law. of a national scope. The Republic's civil code, besides indicating various restrictions on the use of This is the chance for the Under-Secretariat of Water water, limits itself to indicating concessions as a Resources to be able to exercise its leadership by means of acquiring the right to use waters. bringing provinces and civil society together to discuss the structure, guiding principles and At provincial level, there is specific legislation for fundamental issues of a mutually agreed draft law. If water resources in most provinces, issued principally this participatory focus is followed, once the Water since the 1940s, using Mendoza's 1884 law as an Resources Management framework law is enacted, example. With the exception of the province of San provinces may be expected to accelerate the Luis, this regulation is subject to a rather rigid adjustment and consistency of their legislative framework sponsored by the Legal Principle of schemes on water resources to this law. Inherent Rights, which states that water may only be Second, the privatization of the national Water and Electricity company started the movement for This federal jurisdiction deals with navigation, not with other provinces to transfer irrigation districts to users' water uses. organizations. To date, this process of transferring 7 districts to users (consortia of irrigators, irrigation companies, etc.) has had different scopes and results. In Rio Negro, the most successful case, the administration of secondary canals was transferred to groups of irrigators and principal networks are in the process of being transferred to second-degree consortia, while in Chubut, the least successful case, it was necessary to take a step backward in terms of transferring to the irrigation company, due to problems in organizing users. The transfer process has not yet achieved anticipated results for several reasons: (i) the ambivalent position of many provinces regarding the granting of administrative and financial autonomy to users' organizations; (ii) users' lack of training to assume new responsibilities; and (iii) their resistance to give up highly subsidized tariffs with low payment levels. This problem represents a critical situation since, if measures are not taken to resolve it, there is a risk that many irrigation districts may gradually disappear. Experiences from other countries such as Mexico show that irrigation districts have been transferred and much can be learned from their successes and difficulties. With proper communication, it may be possible to convince users to participate and provincial governments to adhere to or adopt the principles of the 1991 Privatization Law, with the objective of tuming the present crisis into an opportunity for change. Finally, as demonstrated by current coordination initiatives in river basins located within a single province and in others shared by several provinces, there is national and provincial awareness that the basin is the most suitable unit for integrated water management. The opportunity offered by this awareness and by participation, coordination and financing instruments should be used to integrate basin water management into the overall scenario of land-use planning. 8 3. WATER RESOURCES AND Bordered by the 500 mm isohyets to the west and 800 REGIONALIZATION mm to the east, the semiarid region occupies 405,000 km2 (15% of the country's total) with 25% Located at the southernmost end of the South of the population (density of 23 inhab./km2). Due to American continent, the Republic of Argentina has a significant water deficits for most of the year, land area of 3.7 million km2, of which 2,780,400 km2 i,Tigation is also essential for the development of are on the continent while the remainder corresponds certai crops. to islands and part of Antarctica. The continental portion extends 3,700 km between the 22nd and 55t Figure I parallels. This large extension determines a wide Distribution of Surface Water Resources by variety of climates, from subtropical in the north to Region the cold of Patagonia in the south. t Distribuci6n de los Recursos de Agua Superficiales por Regi6n Strong climate contrasts Average annual precipitation varies from less than 50 Litorai- Central- mm in certain regions of the Provinces of San Juan y Gran X% and La Rioja to the exceptional extremes of 5,000 Buenos Aires. mm in the Andean-Patagonian forests. In general the Hupl .da marked inter-annual variability causes drought and Nuevo Cuyo- flooding problems, depending on the regions. In Noroeste contrast to the rest of the country where there is 2l marked seasonability. on the plains of the Pampa the Colorado-Ro seasonal distribution of rainfall is more uniform. NEgro Patsgonia Sur Annual isohyets of 500 and 800 mm allow the L_ X_ l_ ll___S country to be divided into three climate regions: -- -__- humid (over 800 mm), semiarid (500 to 800 mm) and arid (less than 500 mm). According to this division, REGIONS MXISEC % 76% of continental Argentina is located in arid or semiarid regions, which makes the country Litoral-Mesopotamia + predominantly arid and semiarid (see map of Greater Buenos-Aires + Agroclimatic Regions). Pampa Humeda 18 400 88 Nuevo Cuyo-Noroeste 321 2 Colorado-Rio Negro 1 095 5 The humid region, with over 800 mm of annual Central-Pampa 178 1 precipitation and a surface area of 665,000 km2 (24% Southern Patagonia 896 4 of total surface area), concentrates nearly 68% of the population (40 inhab/km2), 80% of agricultural and livestock production value, and 85% of industry, as well as the essential portion of the country's Abundance and spatial imbalance of infrastructure services. Agriculture is essentially surface resources rainfed; however, in the past two decades there has been a strong development of complementary Surface water resources are estimated at over 26,000 irrigation. m3/s as an average volume (820 km3/year), The arid region occupies 1,710,000 kM2 (61% of the equivalent to a very high volume of 22,000 m3 per The~~~~~~ ardrgo cuis171,0 m 6%o h inhabitant per year, with overall good quality. country's total) and is situated to the west of the 500 however, te real prbe of rouc islthi mm isohyet toward the spurs of the Andean unHowever, the real problem of resources is their cordillera. The population settled there accounts for map Groutin of Pro s in Regionsfo only 7% of the country's population (density of 1.1 map Groupling of Provuces In Reguons for inhab./km2). Farming requires full-season irrigation. Regionalization of Water Resources and Figure 2). Its development is therefore a function of water Nearly 85% of total surface water resources are in the availability and soil aptitude. Plata River Basin (22,000 m3/s) which, in relation to other basins, has the country's largest concentration of population and economic activities. The basin 9 includes the entire humid region and part of the the domestic needs of families in the suburbs of semiarid region, and occupies 30% of the national Buenos Aires to an array of 118 irrigation wells in the territory. Rivers, of pluvial origin, include the Tulum Valley (Province of San Juan) which can Bermejo, Paraguay, Uruguay and Parana, the latter provide a volume of 24 m3/s, to wells that extract being the most important because of its average water from the Parand aquifer which is highly annual volume (over 15,000 m3/s). salinized but suitable for industrial uses. At the other extreme are located the basins without Figure 2 sea outlets (304,000 krn2 and 11% of national Per Capita Water Availability in Arid Provinces territory) which correspond to the arid and semiarid areas of the northwest and center of the country, and D . Agua l which have less than 1% of all surface water esponibilidaddelAgua PerCapita resources (223 m3/s). Some provinces are already enProvincias d ,974 3727 experiencing symptoms of hydrological stress, 3000 . 3,2 according to United Nations criteria on firm X M3/hab/aho availability per inhabitant (Figure 2). 2500 - Niwel de 'stress'(PNUD) Es a-- To buffer the seasonal variation of surface runoff and 2,085 adjust resources to needs, the country has built an 2000- _ important regulation capacity with over 100 major 1,635 storage dams in operation, most of which are for multiple uses (electrical generation, municipal and 1500- _ industrial water supply, irrigation, flood mitigation, 1044 1,125 navigation and recreation). The total capacity of 1000 955 - reservoirs is 160 km3. 488 561 E gi ito- Thirty-one of these dams are mainly for hydroelectric 500 -Age a- use; they were licensed to private operators and are -Isa I l subject to "dam safety" actions. The other 120, which 0 _ _ + were transferred to the provinces, are for multiple uses and still lack an orderly system of "dam safety." -.A 0 It is important that these dam safety systems be $ c:s > 5 s G extended to all of the country's private and public dams The country has always faced extreme situations of excess or scarce water. There is still discussion about The average national contribution of groundwater to whether this is caused by environmental degradation meet total demands is 30% but this figure does not or climate change, or simply by random natural adequately reflect the relative importance of this processes. The 1982/83 and 1992 floods caused by resource (see Box 5). In effect, in irrigation in the the extraordinary rise in the levels of the Parana, arid and semiarid regions, groundwater reserves Paraguay and Uruguay rivers (associated with the El assure the multi-annual regulation of resources and Nifto phenomenon) have scourged the seven allow periods of drought to be overcome, such as that provinces of the Litoral-Mesopotamia region (Buenos of 1967/1972, thus compensating for the lack of Aires, Corrientes, Chaco, Entre Rios, Formosa, surface resources. Misiones and Santa Fe). The 1982/83 event that flooded nearly 4 million ha caused material losses of Despite groundwater's strategic role in the country's around US$1.8 billion. water resources management, there is no real integrated management of surface and ground water, An environmental and public health and aquifer protection has been neglected. There are problem: aquifer contamination also natural causes of contamination such as strong, modern volcanic activity that produces elevated Due to its spatial distribution, its seasonal stability fluorine and arsenic contents. There has also been and the flexibility that allows it to be exploited, nitratecontaminationrelatedtofarming. groundwater is widely used by all socioeconomic sectors. Its use ranges from small home wells to meet 10 In the Federal Capital and the urban conglomerate of area, may be mentioned. Poor management of Buenos Aires, over the past 30 years more than 500 irrigation water and agricultural, municipal and water supply wells had to be taken out of service due industrial pollution have deteriorated the first-layer to quality problems caused by irrational exploitation aquifer in the Northern Oasis, causing high levels of of the aquifer (high nitrate content in wells located in salinity and nitrates. Users have gradually started to agricultural areas, salinization due to over- exploit the second and third layers which are deeper exploitation and industrial pollution) (see Figure 3). and of better quality, abandoning thousands of old The problems of high contents of pathogens, fluorine wells. These wells, due to poor construction and and arsenic as well as nitrates in groundwater corrosion, place the poor-quality water table in direct exploited to supply the population are authentic risks contact with the second layer, causing accelerated to public health. In several provinces, arsenic levels contamination. considerably in excess of drinking water standards have been detected in water supplied to the As a result, we are facing a very serious situation: population, especially in rural areas4. "groundwater contamination [is] the most important pollution problem in Argentina"6 (see Box 3). Figure 3. Contamination Problems in Unfortunately, the degradation of groundwater quality Groundwater Used to Supply the Buenos Aires takes years, if not decades, to manifest itself. Metropolitan Area Domestic Municipal Box 3: GROUNDWATER PROTECTION Well Well Household I I and Industrial In the context of water resources management Pampa Aquifer Pollution and use, groundwater is becoming Poor natural quality I l increasingly important, especially in arid and ---------------------- - -- -t-- - - - - - - - --- semiarid areas. The planning of these Puelches Aquifer resources should go hand-in-hand with that of Over-exploited v v surface water in river basins. Emphasis nrSaline should be placed on programs that utilize the salinization A most effective, economic methods to protect '. .groundwater quality in vulnerable geological Paranh Aquifer zones, as well as in the array of wells and Salinized recharge zones. Measures should be adopted Source: Environmental Pollution in Argentina: Problems and to avoid excessive pumping of aquifers in Options; World Bank 1995: Modified coastal areas and of aquifers lying beneath saline aquifers, since the extraction of Regarding irrigation in arid and semiarid zones, the excessive quantities may cause irreversible poor management of the irrigation water/water contamination of aquifers with salty water. table/soil and drainage system has caused serious To recover contaminated groundwater and problems. The salinization of water and soils is a keep it from becoming even more serious threat to the sector's sustainability. Over half contaminated, it is necessary to establish and a million hectares of irrigated land are already implement appropriate environmental affected by water and soil salinity and/or drainage regulations and standards, as well as codes of problems. This problem is concentrated in seven practices. for the transportation, transfer, provinces5, and represents 60% of their irrigated area. storage and disposal of hazardous and toxic As an illustration, the situation of the province of waste under safe conditions. Planning is also Mendoza, which has the country's largest irrigated essential in order to deal with droughts. Depleted aquifers should be recharged in order to store and use water in cases of 'The limit is 0.05 mg/i for arsenic; in the Province of C6rdoba, emergency, so as to ensure the survival of the values of 0.08 mg/l have been detected in the Cuarto basin and population and of ecosystems in periods of even extreme levels of 0.13 mg/I in the department of Marcos Juarez and 0.18 mg/l in San Justo. drought. Source: Water Resoruces Planning. World Bank Policy Paper 12335, 1994 ' These are the Provinces of Chubut, Mendoza, Rio Negro, Salta, San Juan, Santiago del Estero and Tucuman which have a total of - 923,000 hectares of irrigation, representing two-thirds of the G World Bank. Environmental Pollution in Argentina: Problems and national total. Options. October 1995 11 Aquifers constitute an essential asset for the country's socioeconomic development and the well-being of its population. Available information on groundwater resources, although variable from one region to another, is sufficient to begin planning the rational use and protection of aquifers. Although a long period of time may be needed to stabilize and then restore contaminated groundwater, it is now time to begin immediately, with strong actions, to conserve, protect and restore this resource. Regionalized View of Water Problems Taking into account the main problems concerning the efficient management and protection of surface and ground water resources, and thus the guidelines for actions that could be implemented, the regionalized view of water resources and related key issues, as shown in Box 4, is proposed. For more detailed regional information, see Annex 5. 12 Box 4 - Grouping of Provinces for the Regionalization of Key Water Resources Issues REGION PROVINCE REGIONAL CHARACTERISTICS CHALLENGES AND POTENTIAL Formosa Predominantly humid climate . In general water in sufficient quantity, but no Chaco Rainfall scheme quality groundwater in Chaco and Santa Fe Misiones Rainfall between 800 and 1500 mm/year * Groundwater contamination: Corrientes Part of Plata River basin * Risk from fertilizers and Santa Fe Principal basins: Parana, Paraguay, pesticides 1. LITORAL - Entre Rios Uruguay, Bermejo and Pilamayo * Poorly finished irrigation MESOPOTAMIA . Aquifers extending from the Chaco wells are routes of Pampeano, highly vulnerable to contamination contamination * Over-extraction causes Principal water problem: floods contamination from arsenic and fluorine * Floods in urban and rural areas 2. CENTRAL - Santiago del Semiarid to arid climate * Abundant water, but rivers, lakes and aquifers PAMPA Estero Rainfall between 200 and 800 mm/year polluted (municipal, metal-mechanical, C6rdoba Dividing zone among Plata, Atlantic and industrial, automotive, military and nuclear La Pampa closed basins waste dumping . Chaco Pampeano and intermontane * Scarcity in some areas aquifers Principal water problems: water pollution, insufficient irrigation Jujuy Arid climate * 75% of the country's irrigation, but 50% of Salta . Rainfall between 100 and 500 mm/year surface salinized or stagnant, and obsolete Tucuman . Closed and Atlantic basins technology. Catamarca . Discontinuous aquifers closely linked to * Acute water shortage. 3. NUEVO CUYO La Rioja intermontane rivers, vulnerable to . Three connected aquifers that contaminate one - NORTHWEST San Juan salinization due to strong evaporation another (Mendoza) San Luis . Contamination by agriculture, mining, Mendoza petroleum and military industry. * Low level of use of melted snowpack by not inducing recharging 4. GREATER Province of . Humid climate * The country's largest demographic, BUENOS AIRES - Buenos Aires . Rainfall between 800 and 1000 mm/year agricultural, livestock and industrial HUMID PAMPA Federal . Resources of Plata River concentration, but with abundant water. District . Regional aquifers of the Chaco * Multiple sources of contamination: Pampeana highly vulnerable to natural, . Losses and wastage of drinking water: urban and agricultural pollution * Urban floods caused by: Increase in runoff coefficients Clogged sewers Rise in water table 5. COLORADO - Neuquen . Arid and semiarid climate, rain-snow * Vast zone without rivers between Negro and RIO NEGRO Rio Negro scheme. Chubut rivers . Rainfall between 200 and 400 mm/year * Irrigation in elevated areas with problems . Water resources essentially from Negro similar to those of Mendoza. and Colorado rivers . Average annual expenditure 1,150 m3/s . Use of groundwater .Principal economic activities: agriculture, tourism, electricity, mining Principal water problems: inefficient irrigation, salinized lands, insufficient rural supply 6. SOUTHERN Chubut . Arid and semiarid climate, strong winds * Water pollution from oil and coal exploration PATAGONIA Santa Cruz . Rain-snow scheme * Drinking water for rural zones Tierra del . Continental ice sheet * Petroleum contamination Fuego * Desertification 13 4. USES AND MANAGEMENT Irrigation is the principal use, followed by urban and industrial supply. The importance of groundwater, An estimate of the contributions of surface and 30% of the total, is remarkable (Figure 4). ground water in the coverage of the country's total consumptive demands is summarized in Table 5. Box 5 - Water Extractions (1993-97) CONSUMPTIVE SURFACE WATER GROUNDWATER TOTAL USES Million m3/year % Million m3/year % Million m3/year Irrigation 18,000 75 6,000 25 24,000 Livestock 1,000 34 2,000 66 3,000 Municipal 3,500 78 1,000 22 4,500 Industrial 1,500 60 1,000 40 2,500 TOTAL 24 000 70 10,000 30 34,000 Source: FAO-Aquastat. Figures modified and rounded The analysis of water resources use and management by sectors, summarized below, points out the priority Figure 4 actions to be undertaken. Said actions should be implemented in parallel, while the necessary reform is carried out to reduce legal and institutional limitations Water Withdrawal for Consumptive User Per Sector and thus improve water resources management. hdutri.1 Sectors with consumptive use include those of I irrigation, drinking water and sanitation. Due to L-tock inefficiencies in use and the impact of dumped waste water on the environment, increased efficiency would Su" produce direct economic savings and reduce negative Surface ater externalities. IrrIaon _ Drinking Water and Sewerage TotaW In 1999 only 81% of the urban population was 0 5 10 15 20 25 30 35 40 USufface Wa ter k,y. connected to drinking water networks and 38% to oGrurewater sewer networks. The situation for the country's five million rural residents is estimated to be even worse: Surface WaterWithdrawal GroundwaterWithdrawal 24 500 Milli.n ,.Wrr 10 000 Milli.. .N,Yr 17% with drinking water and fewer than 3% with sewer service. In Argentina this is acknowledged to Liv..t..k be unacceptable, especially if one considers that this 4% 20% is one of Latin America's countries with the highest 1ro g t Irdgo5o per capita income and that less wealthy countries 1115% 10% have better coverage (see Figure 5). Moreover, the _h r quality of service is deficient. There is rationing in _% nearly all large cities. This situation is exacerbated by irrational consumption and wastage in most of Argentina's systems, in large part caused by the absence of adequate charges based on metered service. The most evident indicator is an average production of nearly 500 liters/inhab/day, one of the highest levels in the world. 14 Figure 5 the scheme, rather than having benefited the poor, in many cases has worsened their service Urban Access to Safe Water and GNP Per Capita conditions (see Annex F, Volume III). .0000 I- _ - In the drinking water sector, waste could be 9000 Argen0na( reduced by using a number of quickly applied 0 8000 1 K- technological measures, especially metering. : 7000 But the idea of saving water needs to be s 60001 implemented in the long term, using relevant 5 5000 Lkuguay * communication and education efforts, and an 3 4000Xico adequate tariff system based on metered o 30N , consumption. Water cannot be separated from 2000I deficiencies in sewer service and problems 1000 I 0 _ X brought on by the contamination of aquifers 60 65 70 75 80 85 90 95 100 whose protection is as important and as much a % Acceaa to Safe Water priority as waste reduction. Calculated from 1999 World Development Indicators data Irrigation Most of the systems supplied from shallow The country has 125 irrigation systems or zones, aquifers distribute water contaminated by natural including complementary and full-season causes and/or by industrial, household and irrigation, both public and private. In certain agricultural uses, which results in substandard zones, especially in the arid region, there is a drinking water quality. In fact, the most acute state registry of water concessions and uses. In environmental problem is acknowledged to be others this use is mainly private, by direct arsenic and nitrate contamination in many pumping of surface and/or underground sources aquifers that serve as a source of human water and generally without a water use concession or supply. permit, which hinders the control and exact knowledge of irrigation areas. In addition, a very low proportion of municipal waste water is treated nationwide. Sewer water, Lands potentially suitable for irrigation are without proper conduction or treatment, directly estimated at around 6,300,000 ha, of which only contaminates aquifers which are sources of 2.5 million may feasibly be adapted for full- supply and introduces pathogens that affect season irrigation. The total irrigated area is health. It has been estimated that, to achieve around 1.5 million ha (73% or 1.1 million ha in 90% coverage of water and 70% coverage of arid and semiarid zones), while the surface with sewer service, without counting treatment, the available irrigation infrastructure (including all annual investment of US$300 million would registered areas) covers around 1.75 million ha. have to be increased to US$500 million for 8 to Although this may indicate a great potential for 10 years. expansion, in many cases even larger investments are required so that water can be With the objective of dealing with the above- delivered to areas to be incorporated. mentioned problems, during the 1980s the Government decentralized services to provinces Currently 68% of the area under irrigation is and in 1991 began to promote private located in arid and semiarid regions and the participation, assuming the role of regulator remaining 32% in humid regions. In the latter, which is essential but was heretofore unknown in this is complementary irrigation or irrigation for the country. The latter effort, unprecedented in rice production. 74% of the systems or areas Latin America, has caused 60% of the urban belong to and/or are administered by the public population to be served or soon to be served by sector and 26% by the private sector. private companies. A key issue is to acknowledge that neither the government nor Although the area under irrigation represents professional organizations have the institutional only 5% of the country's agricultural area (30 capacity to offer the regulatory framework million ha), its real importance should be gauged required to regulate companies that provide by the fact that its participation in sectoral public water and sanitation services. Perhaps the production value has fluctuated between 25% most regrettable consequence is that, until now, and 38%. However, Argentina's irrigation sector 15 is experiencing a profound structural crisis, not decentralizing the operation and maintenance of only in producers' loss of profitability but also in systems to users' organizations supervised by the outdated technology throughout the productive water authority. The timetable established for system. transfers is different in each province and depends to a great degree on the idiosyncrasy of Based on an in-depth analysis of the sector (see its producers. Promoting and supporting Volume III, Annex D), it is concluded that the provinces in the transfer of this irrigation best sectoral policy is the reclamation and infrastructure is an important political decision to modernization of areas currently equipped with improve the sector's efficiency by transferring irrigation, in contrast to investments in decision-making to the lowest and most expansion. appropriate management levels. Four major problems are identified as requiring However, the transfer process in Argentina is attention: (i) combating salinity and poor incomplete and still requires government drainage; (ii) updating technology in the attention to be effective, as indicated by World productive system (agronomic and marketing Bank experience in other countries where similar aspects); (iii) consolidating the process of policy decisions were made. In Mexico, it was transferring districts to the user sector (private); essential to promote associations of irrigation and (iv) the tariff issue. system users, granting them greater responsibilities in the management, Of the total 1.5 million ha under irrigation, about administration, operation and maintenance of 500,000 ha are considered to be affected, to distribution systems, including giving them the varying degrees, by drainage and/or salinity function of charging fees for maintenance and problems (see Annex 3). Efficiency in water use levying penalties for non-payment. The most is generally very low: the average is less than successful associations were those that had areas 40%. of over 18,000 ha, to take advantage of economies of scale. (This threshold has been Small- and medium-scale farmers were being similar in Mexico and Turkey). This same bypassed, not only in terms of the incorporation concept is also applicable to the rehabilitation of new cropping and irrigation technologies but, anid modernization of primary infrastructure; the more importantly, in terms of the adoption of establishment of adequate water tariff structures; organizational breakthroughs and new varieties the introduction of efficient operation and of fruits and vegetables with better commercial maintenance technologies; agricultural marketing acceptance. In contrast to their Chilean technology; and assistance in financing neighbors, Argentine irrigation producers, improvements to irrigated lands. The provincial lacking information, repeated traditional crops, roles should be those of: regulation, promotion thus highlighting pre-existing monocropping of sustainable and competitive use, financing and situations. Outdated irrigation technologies are supervision of irrigation functions. reflected in deficient maintenance methods and obsolete systems of applying and distributing Inefficient water use in irrigation wastes water through the use of gravity. The financial resources and needs to be urgently reduced. A restriction experienced by provincial economies modest 10% gain in efficiency in these sectors since the 1995 crisis and the subsequent lack of would mean a savings of around 3 billion m3 of credit have hindered the reconversion of water which would be immediately available to perennial crops which have the most outdated extend the service. However, for this gain to be technologies, and have delayed the long-lasting and sustainable, these actions need implementation of diversification processes, with to be included in an integrated management repercussions on the increasing obsolescence of system, taking into account legal, institutional, civil works, installations, machinery and other socioeconomic, technological and environmental equipment. aspects. Most Irrigation Districts (public irrigation), Improved efficiency in irrigation will be initially under the aegis of the Federal sustainable if the sector is modernized so as to Government (around 800,000 ha), were overcome the structural analyzed above. transferred to the provinces when the privatization process began. This new provincial responsibility opened the process of 16 Box 6 Water quality and pollution Typical Cases of Urban Water Pollution in The problem of water quality in Argentina has Argentina some unusual features. For water supply to the A. Metropolitan Areas (Buenos Aires, population, the current classification (i.e., good, C6rdoba, Rosario, Santa Fe, and mediocre, poor or unsuited for the use Mendoza) considered) does not really reflect water quality. What would truly reflect the consequences of 1. Contamination of surface and underground using water of different qualities would be the sources from untreated urban waste (severe in terms good, bad, dangerous or toxic. In addition, small rivers and streams) bodies of water (aquifers, natural or man-made reservoirs) are particularly fragile and vulnerable 2. Improper disposal of solid and toxic industrial to natural contamination and that induced by waste (especially on the outskirts of urban areas) human activities (see Figure 3 and Box 6). The problems of high contents of pathogens, B. Medium and Small Cities fluorine and arsenic as well as of nitrates in groundwater used to supply water to the 1. Contamination of surface and ground water from population, have already been mentioned. These sewage and inadequate solid waste collection and constitute a major public health risk. It was also disposal (throughout the country) mentioned that these are problems resulting from 2. Pollution by large local industries: poor management of aquifers (generalized over- * Petrochemical industry, limestone extraction exploitation or localized over-extraction, lack of (Pampa Region) protection and conservation measures), and * Oil drilling, sugar industry, and lead smelting deficiencies in sanitation systems that directly (Northwest Region) pollute the source of supply. The same situation * Oil drilling and uranium mining (Cuyo Region) is found in several surface reservoirs such as the * Oil drilling and coal mining (Southern Patagonia) San Roque and Los Molinos lakes in C6rdoba, Lacar lake in Neuqudn and Nahuel Huapi lake in Rio Negro which are being polluted by untreated wastewater from urbanization along rivers. In The country has four principal types of floods: addition to pollution, there are other important i. In the valleys of large rivers (due to high urban problems caused by floods and inadequate water); drainage, as discussed below. ii. In the Andean foothills (due to rapid snow melt); Floods iii. Flash floods in urban and rural areas (due to heavy storms); and iv. Floods in closed plains (due to heavy Argentina is among the 14 countries most storms but often associated with deficient affected by catastrophic floods, with losses of drainage, soil management and deficient over 1I.1% of the national PGB. rural roads). There is a high frequency of flooding, with more Of all these, floods in the valleys of large rivers than one important event every ten years or less. of the Plate basin are the most significant Since 1957, 11 important floods (one every four because they affect the country's most developed years) have occurred, causing deaths and major (>76% PGB) and populated (70%) areas and are losses in: infrastructure, agricultural and of long duration, from two weeks to two months. livestock production, private goods and economic activities. These are negative effects For some time, progress has been made both in with very strong economic, financial, and proposing policies to deal with floods in the psycho-social consequences. Litoral and Mesopotamia, and in putting them into practice. While floods have scourged these regions with greater intensity, particularly along 17 the banks of the Parana, Paraguay and Uruguay rivers, as well as some of their main tributaries, For the management of credits aimed at dealing one should also consider the problems caused with flooding problems, Argentina has an ad hoc during humid years in other parts of the country group of consultants created as the Central Sub- (for example, the southwest -a region of linked Unit for Emergency Coordination (SUCCE). lagoons-- and the northwest of the province of This group consists of highly qualified technical Buenos Aires and the south of the provinces of staff and its performance has been satisfactory to C6rdoba and Santa Fe). the Bank. Debate continues on the underlying origins of Since Argentina is a high-risk country in terms increased high water levels or exceptional floods of floods, landslides and other associated and their ever-increasing damages. Some people accidents, with strong, negative externalities, attribute them to man's depredatory actions, greater institutional importance needs to be given others to climate change, and a third group to to this matter. An important lesson is to have a soil use that totally ignored the laws of nature. small but efficient, centralized and stable agency Recent research appears to confirm that El Niflo for the management of water disasters, instead of is responsible not only for floods in the Litoral a temporary agency comprised of outside and Mesopotamia, but also for flash floods. It consultants. A country that suffers serious should be noted that the effects of these sudden flooding in two out of every three years must phenomena are worse because of a lack of maintain institutional and operational capacity, experience in dealing with them. based on stable groups of experts. To deal with these problems, the current of Tariff Scheme traditional solutions based on engineering structures is losing ground to the growing Argentina still has a long way to go in terms of difficulties of obtaining financing and evidence fully recognizing the economic value of water. of the lack of effective control structures in The value of water represents the measure of its several dramatic examples, such as the 1992 usefulness to users in a city or region, and its Mississippi floods. The world trend is to importance to society, measured in economic complement and even replace these traditional terms. This is fundamentally due to its solutions with early waming and prevention importance and essential character in different measures, rational soil use planning, zoning to uses (such as for drinking, irrigation, transfer people and cattle during extreme floods, hydroelectricity, sanitation, industrial construction of culverts and fords with sufficient production, recreation, environmental protection, capacity (instead of large bridges), to keep water etc.). The characteristics of its spatial and from going over roads on a handful of occasions seasonal availability and its quality at the place it during a road's useful life. This focus is also is harnessed also influence the determination of part of integrated water resources management. water's value. Argentina will certainly adopt it to try to mitigate damage from events such as the extraordinary The various tariff schemes in Argentina for flooding of the Parana River in 1982 and 1983 different water uses are far from taking this which inundated 3.8 million hectares and caused concept of the economic value of water into losses totaling US$1.79 billion, account. In general, tariffs are only sufficient to cover the costs of water system operation and The Bank recently provided assistance to repair maintenance, with the exception of large cities. damage caused by the 1982/83 and 1997/98 floods in the Litoral and Mesopotamia, but it is The structure of tariff systems for different necessary to protect other urban areas and water uses should allow a certain degree of complement drainage in urban and rural areas. compatibility among aspects of service Currently, a loan is being executed to: i) efficiency and adequate financing of service strengthen the protection of high-value zones companies. To include in the tariff system the that were affected by the floods, beyond the objectives of efficiency and self-financing, it banks of the Parana River; ii) prepare early- will be necessary to properly establish both the warning models for timely evacuation of people average level of the tariff and its structure. and construction of shelters; and iii) zoning to determine flood zones that cannot be protected Some reforms are underway, although still and relocation of people living in those zones. tentatively. Various options are available to 18 expand these efforts, including: bulk water V The Puelches aquifer in the metropolitan pricing; and a strategy for the drinking water and area of Buenos Aires. This aquifer has been sanitation sector that balances the goals of intensively exploited to supply the area. Use universal service, taking into account fairness, grew to over-exploitation, causing a financial affordability and fiscal responsibility, generalized reversal in the natural flow of This requires the establishment of appropriate groundwater. In the mid-1980s, the incentives to conserve and care for the resulting situation translated into saline environment, and to attract private risk capital. intrusion along the coastal zone of the Plata Reforms that would be worth promoting include River and from rivers and valleys with the transfer of irrigation districts to user sewer water from the metropolitan area. organizations; and the appropriateness of The problem is worsened by the phenomena introducing fees for the effective payment by of vertical filtration of contaminated waters users and polluters of rights to use and dispose of with high levels of pathogens, nitrates and water. arsenic. Wells with water whose water did not comply with standards have been gradually abandoned, reaching a total of 500 Externalities and Environmental Costs in recent decades. The replacement of groundwater with water from the Plata River Finally, integrated water resources management to supply the metropolitan area, although should explicitly include environmental costs partially and in stages7, has caused the and negative externalities which imply poor inverse phenomenon: the reappearance of management. Externalities are external, the water table where it had practically undesired and uncompensated costs that one disappeared, with levels rising to a depth of creates and imposes upon third parties for less than I m, causing the saturation of carelessness in the exploitation and use of a household septic tanks, the waterlogging of common good such as an aquifer, reservoir or basements, garages, tunnels and river, and more generally the environment. underground storerooms, as well as various There are various flagrant cases of externalities adverse effects on the foundations of in Argentina, created by careless treatment of the buildings and other works. The environment, including: environmental costs stemming from over- exploitation of groundwater, followed by the / The aquifer in the Northern Oasis of abandonment of wells and the rise in the Mendoza. Mismanagement of irrigation water table, that could be accounted for, water and agricultural, municipal and include: the costs of mobilizing another industrial pollution have deteriorated the source of water to replace the Puelches first layer of the water table which now has groundwater, and the cost of waterlogging in high levels of salinity and nitrates. Users urban infrastructure. have gradually begun to exploit the second and third layers which are deeper and of / San Roque Lake in Cordoba. This better quality, abandoning older wells. reservoir constitutes the main source of Externalities include the loss of capital from water supply to the city of Cordoba. abandoned wells that have not been Cyanobacteria have been detected in the completely clogged and sealed (to avoid reservoir, and thrihalomethanes in treatment contamination through vertical filtration), plants, at above-normal levels. The supplementary investment in wells and probable cause of this contamination is pumps to exploit deeper layers, the urbanization around the lake which lacks an supplementary cost of pumping, the adequate sanitation system. The population supplementary cost of washing salinized of 74,000 doubles on weekends and during soils, the complete loss of farms with tourist seasons. Several academic studies salinization and/or drainage problems. What indicate that the origin of cyanobacteria is is most serious about this situation is that the the elevated level of nitrogen and aquifer, with its corresponding externalities, phosphorus in the lake. The city of continues to deteriorate, and abandoned Cordoba, which is supplied with water from wells are quickly contaminating the second layer of the water table. 7 Around 250 wells are still used by Aguas Argentinas in its concession area. 19 the lake, is enduring the externalities of this referenced database, transparency and easy, environmental contamination, with universal access to information. subsequent risks to its population's health. In several regions of the country, progress has A very preliminary, rough estimate would been made in implementing the joint use of place economic losses, associated with surface and ground water resources, but true, negative externalities linked to deficient integrated management is needed, taking into water resources management, principally of account not only quantily but the quality groundwater, at over I billion pesos per dimension and especially the protection of year. Moreover, around 500 million pesos resources from various sources of contamination. per year are associated with poor management of irrigation, salinity and poor The lack of inter-institutional coordination, as drainage. well as of communication and exchange of information, among different agencies causes an From fragmented management to overlapping of functions and sometimes dilutes integrated, modern and efficient responsibility. There is no database> nor a sole management water resources information system, either at national or provincial level, to support Despite their enormous water potential, management and facilitate communication. considered overall, different areas and Although the country has constantly faced socioeconomic sectors of the country have had to exthough shortry has datan flood face difficult and even critical situations with extraordinary shortages, existing data on floods faegardifficulto ad eveir weril nds.iThuatonasit is scarce and scattered. However, it may be said regard to their water needs. The analysis that, in general, the rainfed farming area has presented in the above paragraphs points out the excellent humidity conditions. To compensate numerous deficiencies in all the physical, the ht seasonal w ate technological, socioeconomic, financial, legal, for the slight seasonal water deficit, institutional and environmental aspects of the complementary irrigation, especially that based coutntry's water renvirou anamental aspectsofthe on groundwater, is being developed at an country.'s water resources management. accelerated pace. Aquifers are used as inter- annual reservoirs, which makes it possible to Current management of water resources both at mitgat dreased volu es of psurfae wt national and provincial level is characterized mitigate decreased volumes of surface water mainly by sectoral and institutional during prolonged droughts. When the shortage fragmentation without consistent coherent legal prolongs for several years, conflicts occur over fuppra uenttio wthout csisent, ohrent legal the over-exploitation of aquifers, with all sorts of support due to the deficient or non-existent ades fet . Thi isaohrraootk power granted to the public registry of water use adverse effects. This IS another reason to take and disposal rights. These rights lacking care of groundwater quality and thus conserve a resource that will not likely be depleted but notarization and the physical security of the whose contamination, if current trends persist, resource due to the lack of reliable, up-to-date could make it useless. records, offer no legal security to users and hinder the development of a rational water policy that considers environmental protection. This situation is worsened by outdated technologies. In current practice, all essential management practices are taken into account, from the technical to the social, but in an isolated, static manner, without dynamic, iterative integration which should be the mainstay of water resources planning and management. The registry of water use and dumping rights should be an essential instrument of integrated management, not only assuring the legitimacy of granted rights but also serving as a means of controlling volumes and charging for usage. The registry should contain mechanisms for ongoing, systematic updating, inspection and monitoring, an electronic, geo- 20 5. TOWARD A NEW WATER take a long time. Nevertheless, the essential POLICY conditions are present and there is evidence of a general consensus on beginning the most pressing efforts to modernize the country's water The Challenge resources management. Despite their enormous water potential, Objectives of a new policy considered overall, the country's different areas It is up to authorities and society to define a new and socioeconomic sectors have had to face water policy, looking toward the new century. difficuft, if not critical, situations with respect to Based on the analysis of the country's water their water needs. Several sectors of the popultionstil lac relabledrining ater resource status and key issues related to legal, population still lack reliable drinking water institutional, socioeconomic, technological and without risk of toxicity, and basic sanitation environal spects, tecipalogions of infrastructure. The irrigation sector is losing its environmental aspects, the principal options of competitiveness on the continent's market, with this strategy may be outlined, defining the basic over half a million hectares suffering from objectives and actions to be implemented in drainage and/or salinity problems due to poor order to achieve them with the corresponding management of irrigation water and soils. implementation strategy. A new water policy should be part of the overall sustainable The analysis presented in the previous chapters development framework of Agenda 21 and in points out numerous deficiencies in the physical, accordance with the so-called Dublin principles technological, socioeconomic, financial, legal, (see chapter 6). institutional and environmental aspects of the country's water resources management. The basic objectives of a new water policy could consist of: A constructive view V Putting an urgent stop to aquifer If we were only to consider the above, the contamination. Restoring and preserving outlook would appear somber and discouraging. groundwater resources which, due to their However, with a clear understanding of existing importance, should constitute a national problems, together with a general decision to asset and strategic reserve. deal with major reforms to modify the current situation, it will be possible to turn these V Promoting policies and implementing limitations into advantages. actions that halt the pollution of surface waters by untreated urban, industrial and The profusion of legal texts and their mining waste/ corresponding institutions denote a strong tradition in water rights legislation and in the V Quickly reducing the difference in coverage, decentralization of water administration which among rural areas and urban zones, of need only to be adjusted and modernized in order drinking water services, free of any risk of to become efficient. Few places in the world contamination and toxicity, and of course have achieved joint use of surface and ground sanitation services. water resources such as that practiced in the valleys of Mendoza and San Juan, although the V Recovering large irrigation areas affected by system needs to integrate the environmental salinity and drainage problems. component. In the early 1990s, Argentina successfully launched its most important v Simultaneousl modemizin the technolo drinking water and sanitation concession. Other y ig sy and management of irrigation systems, as concessions will follow in the country's major well as of agricultural practices, with the cities.welaofarcluaprcie,wtth objective of increasing production levels. The sector's enormous human potential should V Reducing outdated technology in water not be overlooked; this could be developed resources management systems and in quickly with adequate training and technology information and communication systems. transfer. An in-depth reform of the sector may 21 / Substantially increasing efficient water use and similar institutions. Box 7 shows the in the irrigation and drinking water sectors complexity of management in the case of to achieve a level that is in accordance with aquifers. the country's per capita income. / Through the improvement of a legal and regulatory framework, creating a modem Box 7: Managing Aquifer Over- registry of uses and rights, granting security Exploitation: Economics and Policy1 to water rights to stimulate private sector R.A. Young2 participation, facilitate intersectoral transfers and promote efficient water use. The "Aquifer management, which deals with a complex granting of rights and their registration serve interaction between human society and the physical not only to stimulate the private sector and environment, presents an extremely difficult problem of markets, but also to grant legal security to policy design. Aquifers are exploited by human decisions and over-exploitation is defined here, not in technical the poorest and protect the environment. In terms, but as a failure to achieve maximum economic summary, it constitutes the most important returns to the resource; it can be best understood as a sub- r optimal policy regime. Aquifer over-exploitation may be tool for Integrated water resources caused by either, or both, of two classic types of social management. dilemma problems. First, aquifers are typically common pool resources, in which a migratory subtractable resource Based upon this, the classification of objectives is exploited under an unrestrained rule of capture. Those using the resource are little motivated to preserve its value may vary from one region or province to another (since anyone conserving it for future use simply leaves it in terms of their respective problems. for others to capture), and the collective inefficiency of a pumping race is likely to result. Second, extensive exploitation of aquifers often imposes unwanted damages With the purpose of achieving the objectives on third parties (external costs). Examples include: proposed in the new policy, the actions to be damage from subsidence of overlying lands, from programmed should be supported by strategies intrusion of water of poor quality, or from interference that consider the environmental, economic and with interrelated water supplies claimed by others in wetlands or streams. Two types of collective policy social dimensions of water. decisions must be addressed in the management or regulation of over-exploited aquifers. For one type, A flexible, realistic and regionalized termed 'managing the water,' decisions must be made on: a) the appropriate annual rate of pumping; b) the strategy geographic distribution of mapping; c) whether to augment water supplies and/or whether to artificially . . . recharge the aquifer. Another important type of policy, The numerous lmitations, especially with regard which . can be called 'coordinating the people,' to legal and institutional aspects, could make one determines: a) the institutions and policies that divide the think that these are insurmountable obstacles on extraction rate among potential individual users and user the path toward an in-depth reform of the water classes and influence pumper behavior; and b) how rules for limiting pumping are monitored and enforced. Taxes, resources sector. However, with a pragmatic subsidies, pump permits, exchangeable pumping focus and a sufficiently flexible and realistic entitlements and education and research are among the strategy, it is possible to implement a reform that people management options. Choosing an aquifer starts with various concrete programs and actions management policy must, in the final analysis, be recognized as a political, rather than a technical and offers short-, medium- or long-term decision, because social goals must be brought into solutions to the issues identified. It is suggested play and making tradeoffs among goals is a policy that the first steps be taken without delay. decision." .'1 I,Selected Papers on Aquifer Overexploitation;" 23r international Of the key issues needing solutions, several Congress of lAH, Puertode laCCz, Spain April 15-19, 1991 already have the implicit or explicit consensus of Department of Agriculture and Resource Economics, Colorado State University, Fort Collins, CO 89523 USA institutions such as civil society and users on required actions. These include: The urgency of measures to protect and manage / Promoting decentralization in resource aquifers that are being lost due to the management by incorporating the effective accelerated pl ingof their te participation of users and provincial ainaler use, pollution of their waters. authorities in solving regional, subregional Sustaimable use, protection and conserva ron of and aquifer problems, through Basin water implies the participation of each and every ando aquitteerprobles, Basi cthrouh A iatnsm user and at different levels, from the irrigator to Committees, Basin Inspection Associations the region, through the use of small basins, 22 bodies of water and aquifers. Thus, a The prevention and mitigation of the effects of decentralization strategy aimed at incorporating floods in rural areas, which implies integrated the effective participation of users and local water management, along with the management authorities in solving regional, subregional and of soils and of drainage and rural roads within an aquifer problems will be essential to achieve this overall framework of land-use planning. overall objective. But it should not be forgotten that decentralization cannot go faster than the Regional Strategy development of the capacity needed to make such decentralization sustainable. A general strategy has been outlined, but it should be acknowledged that flexibility is The protection of public health from the risk of needed to adapt it to the characteristics of each pollution of water supply sources, particularly in region. rural areas.. The strategy would be applied in programs to strengthen local authorities to In the Litoral - Mesopotamia, the regional increase their role in executing rural projects, actions that would offer a solution to key issues with the necessary operational support to ensure of floods, would include measures to mitigate the effects of flooding, and proper management of their sustainability. In areas particularly mcoacmns ihna vrl rmwr vulnerable to natural contamination from toxic microcatchments, within an overall framework vulnerable themosnatu noatamieatond frostoxica of land-use planning. Drinking water supply is a elmns th.otinvtv n utial public health problem. In rural areas and small techniques should be implemented to ensure towns, ht wouleim. d Inrtan .ens mnimum public health protection. towns, It would be important to ensuTe minimum quantity and quality for drinking water and food preparation, using advanced technology in The need to quickly overcome the use of outdated separate, small supply systems in areas with water resources management technology, water that is verv salty and/or toxic due to especially at provincial level. The use of arsenic, nitrate and fluorine content. positive and negative aspects of international experiences will make it possible to considerably In the Central-Pampa Region, priority should reduce the time needed to implement actions, be given to the problem of protecting the principally in relation to basin coordination and population from the risk of toxicity in management instruments, the protection of supposedly drinkable water. It is a public health aquifers from agrochemical pollution, the issue. Support should be given to initiatives sustainable transfer of irrigation districts to such as that of the joint intermunicipal agency users, urban management, the systemization of for the environmental management of the basin information on water resources and their of San Roque Lake (EIMAC - San Roque) which management at national and provincial level, as constitutes a coordinating structure for the well as the updating and modernization of water restoration and preservation of the lake's water rights registration (see Annex 2). quality. Another regional action would be the reclamation and protection of soils affected by A substantial improvement in the efficiency of poor water management, along with the irrigation systems and systems of distribution modernization of the irrigation sector. and controlled use of urban water to drastically reduce wastage, leakage and unaccounted uses. The protection, restoration and conservation of Increased efficiency in the drinking water, groundwater resources would be an absolute sewerage and sanitation subsector will rely on a priority for the Nuevo Cuyo and Northwest strategy of technical support, training and full Regions. Rcclaiming large irrigation areas that strticipategy of techen priva support ctora g ad fl suffer from soil salinization and/or drainage participation of the private sector. For the problems would be another regional action to be irrigation sector, the strategy would be one of implemented. Since most water resources are decentralization, by transferring the already developed, a rigorous management of responsibility of its operation to users. demands in all water use sectors would be needed to support regional economic expansion The reclamation and protection of soils salinized anedie th s population's wellmbeipng and waterlogged due to poor water management, to be carried out simultaneously with the The Greater Buenos Aires and Pampa moderization of the irrigation sector. Humeda region would first need true urban planning and management, taking into account 23 the environmental dimension of protecting public health and natural resources. The region's principal aquifer also needs proper protection against risks of contamination from agrochemical abuse in complementary irrigation. In the Colorado-Rio Negro region, there is a clear need to recover agricultural soils by means of drainage, rehabilitate idle infrastructure, modernize irrigation, and launch an agricultural modernization program. Likewise, pollution control and the implementation of a dam safety program are actions that should be undertaken immediately. The Southern Patagonia region, probably because of its low demographic density and comparatively minor agricultural activities, currently has the fewest water resources management problems, compared with other regions. Both the overall and regional strategies should be applied according to criteria related to the economic value of water (clear regulatory frameworks, clear price-setting objectives, transparent subsidies, rational promotion of water rights markets) and a pragmatic adjustment of the legal and institutional framework and that of water rights security. 24 6. WATER POLICY AND ACTION In the particular case of Argentina, a fourth AGENDA principle needs to be included: (iv) constitutional, in the sense of provincial ownership of water resources. The policy reforms needed to modernize the It should be noted that many elements of modem country's water resources management (WRM) water policy already exist on paper but lack the require careful, joint planning over a period of no incentive and institutional framework that would less than 10 years, as demonstrated by recent ensure their applicability. In Mendoza, for experiences in Mexico, Chile, Australia and Brazil. example, principles for setting irrigation water In relation to the framework of current water tariffs exist in legislation, but price levels are policy and of the legal and institutional capacity nominal since they are related to historical values for its effective application, the study identified that do not reflect economic costs. In addition, the important conceptual gaps and institutional chargeability of said tariffs is low - 55% -- and the deficiencies (chapters 2, 3 and 4) that limit the current system does not offer incentives to correct efficient, sustainable development of Argentina's this problem. water resources. However, it appears that, after many years and numerous tries, the essential In the water supply and sanitation sector, through factors for social and political consensus on water the reform program and private sector management are materializing and there are participation, water tariffs are progressively optimum conditions for beginning the most urgent nearing their marginal costs through market actions. competition mechanisms introduced in bids for drinking water service concessions and the Principles. A modem water policy should be part periodic adjustments of prices established in the of the overall sustainable development framework contracts. Most drinking water concessions have established in Agenda 21 and in the Dublin managed to reverse the tradition of non-payment Principles. The agreements reached at these two of water which is so common in Argentina, important international conferences provide the reaching 85% of payments on the first billing. elements of principles and best-practices for the This has been possible due to the rapid sustainable development and management of water improvement in services and the implementation resources. It is therefore proposed that modern of contractual instruments allowing service to be water management be integrated, at basin level, cut off for lack of payment. These elements of the and administered with user participation in the water situation in Argentina are a reflection of most decentralized manner possible, and that it older economic policy decisions which are always be supported by three principles: present in water consumption, maximizing their social characteristics and political impact. (i) environmental, through which an attempt is made to halt and reverse the Basic policy elements. The study identified the deterioration of the environment and natural main water policy gaps that conspire against the resources; modernization of water management in Argentina, which ideally should be handled under the "Minimum Prerequisites for Environmental (ii) economic, with the Protection" law (required by the 1994 promotion of sustainable production that ensures constitutional amendment), and the "Water the rational use of natural resources and increased Resources Management" framework law, productivity through clear, efficient processes; and promoted by this study. In reference to the public water policy elements that should be part of the (iii) social, with which actions "Water Resources Management" framework law, are proposed to contribute toward overcoming the four large areas may be cited: social gap and improving the living conditions of the population, particularly in rural areas and (i) policies that promote the efficient use of water, smaller urban centers. both in physical and economic terms; 25 (ii) policies aimed at the environmentally water, sanitation, rain drainage and flood sustainable use of water resources; protection services for the needy. To do so, social tariffs should be adopted, compatible with ...i) policies that provide legal. security in rights willingness or ability to pay, when the former is (ii)poiie tatpovdelea scuit n. igt difficult to estimate, and direct and/or cross- to use and dump waste water, as well as in conflict sub t to financ on- resolution between administrative jurisdictions rurrent costcmpoents. recurrent cost components. and users; and Institutional Model. In addition to these policy (iv) olices t dealwithsocil eqit prblm elements that would Ideally be part of the "Water that guarantee the needy population's universal Reement "d fraeork law " a access to drinking water and sanitation services and other "public goods" such as urban and rural practical institutional model to improve water drainage and mitigation of the effects of floods. resources management should be proposed, based on: The principle of inherent rights in Argentina, (i) strengthening of provincial water meaning that the right to use water is inherent to administrations in their role as economic ownership of the corresponding land, brings about regulators, responsible for keeping the prospective inefficiencies. To optimize economic efficiency in vision of water resources systematically updated the use of this resource in ard zones, as in the (supply, demand, quality and possible conflicts), as examples of Australia, USA and Mexico, the usage well as for providing the means to operate the right should be separate from the land. Moreover, system of generating and analyzing hydrometric especially where land is scarce and its opportunity and climatological data. Finally, but no less cost is high, the price of water (due to the right to important, assigning them the role of organizing use a natural resource as well as the costs that must and maintaining a constantly updated, modem be incurred to make the resource available to the end-user)~ ~ ~ ~~. shul relc.t oiladeooi system to record and monitor water use and waste , allatd water dumping rights, a key tool for integrated costs, and the volumes actuany allocated and water management; consumed. (ii) promoting associations of irrigation system To promote the environmentally sustainable use users, and granting them greater responsibilities in of (surface and ground) water, water should be the management, administration, operation and administered by users at the most decentralized maintenance of farm distribution systems in areas level possible, generally at the basin and/or aquifer large enough to make use of economies of scale (in level. In the case of groundwater, extractions Mexico the ideal was found to be over 18,000 ha). should preferably be compatible with recharges Likewise, the functions of charging tariffs or fees and generally ensure minimum ecological would be transferred to them, and even the volumes, favoring human supply at rational levels. function of penalzig non-payment (the successful experiences in Mexico, Australia and Turkey could The legal quality of usage rights and the ability to be used); resolve conflicts among users in a practical manner, are essential conditions to attract private (iii) supporting provincial environmental investments while making it possible to generate institutions in their capacity as authorities that the financial resources that are essential for the implement water quality regulations; institutional sustainability of the water resources management system. The registration of uses and users in all provinces is therefore essential, as is (iv) creating, through agreements with the the social acknowledgment of the appropriateness provinces and strong initial support from the of paying a fee for the right to use water, and the federal government, basin and/or aquifer registration of sources of contamination, with an agencies in those areas with serious inter-sectoral acknowledgement of the corresponding social and and/or inter-jurisdictional conflicts; and environmental costs. Due to its strong, positive externalities in terms of health, and for reasons of social equity, well-focused policies should be (v) redefinig the role of the federal government established to assure universal access to drinking in water resources management, either through the strengthening of the current Under-Secretariat 26 of Water Resources or the creation of a Federal system as has been done successfully in Mexico. Water Bureau or Agency with regulatory and Subsequently, as the registration of users and policy functions, and with majority participation polluters is completed and more detailed analytical by the province. Some of its responsibilities assessments are made, the proposed initial values include: could be adjusted. Most (around 80%) of the resources generated should be administered in the - keeping the Water Resources Master Plan provinces and in basin and aquifer organizations, updateepi through coordater i Resourovinestr Pas the case may be, in order to carry out the use and conservation of water resources that benefit water units where resources are generated. The - supervising regulatory and water management remainder could finance the regulatory function of policy; national and provincial water resources organizations, the maintenance and expansion of the hydroclimatic data network, water resources - promoting good provincial management and research and development, and the training and that of river basin agencies, and cooperating with improvement of human resources for the institutional strengthening; management and sustainable use of water resources. - mediating interjurisdictional conflicts; It should be acknowledged that, despite the - keeping the national water information system up consensus already reached, the implementation of to date; the proposed elements of the water policy involves enormous practical difficulties. To overcome them, a transition period should be proposed, along - promoting the efficient use of water in economic with a system that is both flexible and adjustable terms; over time, in which lessons learned may be incorporated as reforms materialize. For example, - promoting social equity; and headwaters provinces (where most water resources originate) may be opposed to the reform if they maintain an exclusively provincial vision and - continuously seeking investment opportunities interests based on the ownership of natural and sources of financing for the water sector. resources as granted by the national constitution. It is therefore essential to proceed with the establishment of the legal, environmental and A national consensus for the )i1I water framework that would provide the basis for century the regional alignment and adjustment of provinces' specific legislations. Throughout this Of all the key issues that demand solutions, several process, the financial resources and guarantees of have the implicit or explicit consensus of the federal government for the construction of institutions such as civil society and users on the water works, as well as for the financing of actions required, for which national consensus programs that promote the reform itself, will be could be reached for the new century. National, key elements for promoting and consolidating the provincial and private sector authorities should be reform. For the design of this type of transaction, involved, as well as civil society stakeholders. with strong federal support, models and To get this set of reforms underway, a major experiences from federal countries such as national consensus on the country's water policy Australia, Canada and Brazil, as well as more would be needed, along with strong support by the centralized countries such as Mexico and France, federal government, and a significant contribution may be used. from users and water polluters to promote self- sustainable management. For example, if an initial tariff for bulk water use were established, The agenda and its priorities equivalent to one-tenth of one cent of a peso per cubic meter of water, around 30-40 million pesos A classification of actions is proposed, with the per year could be generated. Charges for water corresponding tentative implementation agenda, pollution (of household and industrial origin) could to ensure its intersectoral consistency. A begin, in nominal amounts, using the forfeit tentative regionalization, at provincial level, of 27 the above-mentioned actions and priorities is also * Streamlined, effective processes and suggested below. mechanisms to resolve conflicts over quantity and quality among individual users, and inter-jurisdictional issues. * Top priority (year 2000) Once the principles that both proposed laws should contain are approved at national level, the 6.1. Laws, regulations and institutional process of adjusting and modifying provincial development legislative schemes may begin, so that they can offer greater consistency, uniformity and The Secretariat of Sustainable Development and flexibility in the management of water rights and Environmental Policy must exercise its leadership in the integrated management of water resources. and invite provinces and civil society to discuss Simultaneously, efforts will be made to the principles that the proposed law of Minimum modernize, rationalize and develop provincial Prerequisites for Environmental Protection water resources management structures (see 6.6). should contain, reach consensus and promote its approval and regulation. 6.2. Communication and citizen participation Likewise, the Under-Secretariat of Water This would also be chance for the federal Resources must exercise its leadership by inviting government and its representatives to inform and provinces and civil society to discuss the raise awareness among citizens that the sustainable principles that the proposed Water Resources use and protection of the country's water resources Management Law should contain, and reach are everyone's responsibility. This would be consensus and promote its approval and carried out by means of communication regulation. This would be the federal programs at national, provincial and local level, government's chance to support provinces in both for the general public and for specific groups instituting the legal framework that would of users. In terms of program focus and establish the principles, roles and duties, implementation methodology, recent experiences processes and instruments that form the may be used, such as those of Brazil and Mexico institutional framework of integrated and those of several European countries. management of the country's water resources. The most important thing is that both be "framework laws" that include modern * In parallel and in the short term. (2000-2002) principles and standards, ensuring: 6.3. Water Resources Management Master - Priorities in the allocation of water for basic Plan human and environmental needs. It is extremely important to highlight the attempt * Environmental protection to conserve and by Argentina's national government to propose improve water quantity and quality. the need to prepare a Water Resources Management Master Plan as an instrument to * Acknowledgment of water as a finte, guide programming, budget allocation and transferable economic asset, with sustainable management control. Annex I of Volume III charges for use (abstraction and dumping) presents terms of reference for the preparation of and services, the Master Plan that the Bank prepared at the • Integrated management by basin and aquifer, request of the SSRH. supported by: (i) systematic monitoring; (ii) modern, up-to-date and transparent registry The Plan will result from the integration of of extractions and dumping; and (iii) provincial plans and will harmonize federal prospective planning. All are basic elements objectives, goals and policies with the particular of provincial planning. objectives, goals and policies of each province. * Minimum standards for management of the This task is currently handled by the National quality, quantity and protection of water Bureau of Water Policy, a branch of the MIyV. resources. Mendoza has already formulated the first version * Appropriate, transparent mechanisms to of its provincial master plan and most other support the security of the right and provinces have expressed the intention to encourage water saving. formulate their own plans. 28 The general objective of the Master Plan is to demands, in terms of quantity and quality. Each obtain, through technical, economic, UPH covers a set of basins or water regions. environmental and social analyses, the planning elements needed to achieve rational use and The Master Plan is expected to be developed in preservation of water resources, seeking a four stages. coordinated, sustainable improvement of the quality of life and development of the The first will correspond to the individualization population. and proposal of variables, parameters and scenarios, as well as the proposal and selection In a country as large and diverse as Argentina, of criteria to estimate inputs and results of the with a federal-type government and with a planning model. complex legal and institutional framework at national, provincial and municipal levels, which It will include the evaluation of water supply, involves numerous agencies dealing with water availability and demand in terms of quality and resources, some of them having done so for long quantity as well as its evolution over the selected periods of time, such planning cannot be done planning period. except through delicate inter-jurisdictional and inter-institutional treatment that allows criteria to The evaluation of water supply will cover be agreed upon and activities to be coordinated surface and ground water resources, water for such purpose. availability and water with damaging effects. The high cost of transporting water long To evaluate demand, a survey all current and distances from natural sources, in relation to the potential water uses should be carried out. Both resource's value in terms of most of its uses, for current and future demand, a distinction hinders interconnection with water systems. should be made between consumptive and non- Thus, water resources management is eminently consumptive uses, differentiating values for local. Added to this fact is the principle current and future demands, both met and unmet. established by the National Constitution in the sense that water resources are owned by the The third stage will consist of applying the provinces. Thus, the provinces should formulate planning model adopted for three planning their respective water master plans and scenarios. This stage will include the participate in regional water plans in the cases of preparation of lists of prioritized, necessary interprovincial rivers and aquifers. actions that may be offered for execution by the private sector and those that may be handled by The Master Plan should benefit from an in-depth, the public sector. up-to-date understanding of the physical, social, institutional and economic situations of the Once the first three stages of the country's Water country's varied geography and, to be efficient, Resources Management Master Plan are should be conceived as being eminently finalized, in terms of lists of proposed actions in dynamic. the third stage, with their respective orders of priority, the Under-Secretariat of Water Policy The specific objectives of Argentina's Water will coordinate the harmonization of national and Resources Management Master Plan are the provincial budget proposals and restrictions, in evaluation of water supply, availability and order to select those actions that should be demand over a planning period of 25 years, for brought to feasibility level. all Water Planning Units (UPH - "Unidades de Planificaci6n Hidrica") - regions into which the The start-up of this priority, powerful tool should country has been divided for purposes of be considered an essential step to be carried out developing the Plan - and its coordination in the short term, in order to integrate those through a model to plan the management of this actions aimed at orienting WRM in Argentina. resource that will allow the identification and prioritization of actions needed to comply with 6.4 Aquifer protection and the supply of safe the expressed general objective. water to the population The UPH is the geographic sphere selected for Aquifer protection measures must be urgently determinations of water supply, availability and imposed. These aquifers constitute a strategic reserve and a national asset that is being lost due 29 to water pollution. It is also a matter of information systems for water resources protecting public health from the risks ol management. This implies the systemization of accelerated contamination of water supply information on resources and management at sources, particularly in rural areas and small national and provincial level, as well as the cities. Aquifer protection should include various updating and modernization of records on rights technical, economic and institutional efforts. to use water and dump waste water. The First, there is an urgent need for a program to svstems would include advanced technologies for cap abandoned wells that are contarninating the integrated management of resources, water tables in the Northern Oasis of Mendoza. particularly those for aquifer simulation, aimed at and endangering the very existence cf the their protection. The provincial implementation province's socioeconomic life. program would assign priority to provinces with the most environmental problems (Mendoza, San Another urgent program is the protection o)f s(!.fe Juan, Catamarca. Tucuman, C6rdoba and Santa water supply sources to reduce the risk of toxic Fe). There are different international experiences and biological contamination. /1r the rlwun! with water resources management. In Latin population and small cities. Fhis consists ol America in particular, we may cite Brazil and establishing protection perimieters aroLund Mexico whose experiences could be adapted groundwater sources, principally in the provinces pragmatically and realistically to the Argentine of Santa Fe, C6rdoba, Buenos Aires, Catamarca. conitext, in order to make it qjuickly operational. Mendoza, San Juan, La Pampa and Jujuv. In cases of natural contamination with arsenic and/or * !n the medium term, (2002-2007) fluorine, with above-normal values, the leasibility of dual systems will be analyzed: water for 6.7. Drastic reduction in water wastage drinking and cooking purified using advanced technology, and water for other home uses wihh1 IThere are numiierous, multifaceted reasons for standard treatment. Finally, in areas U'!itl strong wasted water in different drinking water and development of complementary irrigation irrigation systems: technological, economic, (Central-Pampa Region aind Buenos Aires), institutional and educational-cultural. Therefore, a (Centrai-nampanRe aeduction in the amount of water wasted would training and awareness programs will be reurthimlenaon famliscrl undertaken to prevent widespread pollutioi, require the implementation of a multisectoral especially by nitrates, thereby avoidino iil program. Taking into account the ongoing negative experiences of various Euhs.ropean decentralization and privatization in the drinking countries. They will form part of the policy of water and sanitation sector and in irrigation public awareness and the formation of ptiblic districts the program's key components should opinion in favor of the protection and sustainable include: charges of sustainable fees for the right to use of the countrv's natural resources use water and for drinking water services, irrigation and industrial use, the strengthening of 6.5. Reclamation of lands with drainage and/or regulatory agencies in the various water user sectors, in economic and contractual terms and in ensuring quality service, ancL the education of the T l nl a half various sectors of users about saving and The reclamation program for these lands coseviglatr esures million hectares, i.e., one-third of the countrv's irrigated area) would be a key, complementarN step in the modernization of the irrigation sector. 6.8. Modernization of the irrigation sector For the preparation and implemenitationi of tile program's technical, financial and institutional The principal objective of a modernization components, the highly positive experiences ot program for the irrigation sector will consist of Mexico may be utilized. making it competitive once again; without this, efforts to improve water resources management 6.6. Modernization of water resources would be useless. The program would also be management institutions and technologies inultisectoral and involve structural and non- The widespread lack of strmictitred data and structural components such as the training of infoTenation on water resotlrces te a ds in farmers both in technology and management; the inefficient management. It is essential to quickly organization of Lisers' associations; and financial structuring for credit to famiers. The transfer of implementing national and proeincial irrigation districts should be completed, granting them greater administrative, financial and 30 institutional autonomy as well as the authority to strengthening the process of formulating set and collect sustainable water tariffs. proposed actions. Volumetric delivery and metering should also be systematically introduced, and infrastructure . Specific measures and strategies to prevent maintenance technologies should be substantially natural contamination of aquifers. improved. The broad experiences of Mexico and Turkey stemming from irrigation district transfer . Preparation of analytical criteria and projects-partially financed by the World Bank- methodologies for rational selection of would be useful in designing and implementing projects. this program in Argentina. Application of technologies for the efficient use of water in the wastewater treatment and 6.9. Rural and urban drainage reutilization industry, suited to Argentina's Mitigation of the devastating effects of recurrent conditions. floods in rural areas would require a program to mobilize various policy instruments: introduction . Survey and classification, based on remote of the concept of soil use and conservation within sensing images, to define and stratify the the overall framework of land-use planning; problems of salinization and waterlogging of proper management of basins without sea outlet; lands in the most affected provinces: adjusting rural roads infrastructure to mitigation Mendoza, San Juan, Santiago del Estero and needs; using the positive experiences of rural RioNegro. road maintenance consortia; and establishing sustainable financial mechanisms for . Prospective planning studies in selected maintenance basins, which could tentatively include the basins of the Sali-Dulce, the Desaguadero Urban drainage would also require the River and its tributaries, the Colorado River, mobilization of various policy instruments such the Bermejo River, the rivers of C6rdoba, as the modernization of urban legislation and Mendoza, San Juan and La Pampa, among various regulations, the improvement of financial others, with a revision and updating of the mechanisms, the updating of technology, and quality classification of rivers and other institutional strengthening. receptors. 6.10. Water pollution control . Preparation of realistic standards for drinking water and discharge of waste water. Pollution reduction in rivers, lakes, reservoirs and aquifers would require a broad multisectoral . Regionalized economic value of water in program, to be developed in agreement with Argentina. national and provincial authorities, the private sector and stakeholders. This would be the chance . Generation, collection and formation of to revitalize Basin Committees in order to reach databases, analysis and dissemination of consensus on policy instruments to combat water hydrometric, hydrogeological, pollution: implementation of charges for dumping climatological and water quality data. rights, establishment of municipal and industrial dumping regulations, management of solid waste, and financial mechanisms to help prevent pollution. Numerous, broad experiences may be used, particularly those of Brazil (Sao Paulo, Box 8 shows the geographic (national and Minas Gerais, Rio de Janeiro and Parana) and provincial) scope of the principal proposed France. actions and their respective implementation priorities, as a result of initial discussions held at 6.11 Improvement of analytical basis for provincial dissemination workshops. management An important support for the implementation of the proposed action agenda will be the improvement of the analytical basis for 31 Next stage in implementation Above all, this document constitutes an instrument for facilitating the start-up of dialogue on the matter. The next stage would consist of consolidating consensus on the action agenda, aimed at improving water resources management, while the preparation of Provincial Water Resources Management Master Plans begins. At future discussion meetings, it is suggested that the following priority issues for discussion, consensus and future actions be debated with the principal actors in the area of water resources in Argentina: I Legal and regulatory aspects. Bill of Law of Minimum Prerequisites, its applications and implications. TI Communication and participation of users in the process of discussing issues and decision-making. III Protection and management of groundwater resources. IV Design and implementation of national and provincial information systems for integrated management of water resources. V Improvement of water and sanitation quality, and control of water pollution. VI Supply of safe water, without risk of toxicity, to rural and small urban areas. VII Modernization of irrigation and reclamation of salinized and waterlogged irrigation lands. VIII Flood management in urban and rural areas. IX Integrated Management of Water Resources. X Economic Value of Water in Argentina. 32 Box 8: Proposed Action Agenda SCOPE OF ACTION AGENDA AT NATIONAL, REGIONAL AND PROVINCIAL LEVELS 1. Laws, regulations and institutional development. 7 Reduction of wasted water. 2. Communication and citizen participation. 8. Modernization of irrigation sector. 3. WRM Master Plan. 9. Rural and urban drainage. 4. Safe water and aquifer protection. Erosion 10. Water pollution control. control. 11. Improvement of analytical basis for management. 5. Land reclamation and drainage. 12. Dam safety. 6. Modernization of technologies for water resources management. Recommended Application Actions Coverage 1 2 3 4 5 6 7 8 9 10 11 12 NA TIONAL __*_*__ * _ . x * LITORAL - Formosa * * x MESOPOTAMIA Chaco * * * * x Misiones * . * x Corrientes * * * * * x Santa Fe * * * * x Entre Rios * * x CENTRAL - PAMPA Santiago del Estero * x x C6rdoba * . * . . . x x La Pampa * * * . x x NUEVO CUYO - Jujuy * * x x NORTHWEST Salta * * * * x x Tucuman * * * * x * x x Catamarca * * * * x x x La Rioja * * x x San Juan * * * * . x x San Luis * * x Mendoza x * * * * * x * __ _ GREATER BUENOS Province of Buenos * . . . . x x . x AIRES Aires - PAMPA HUMEDA Federal District * * . x * x COLORADO - RIO Neuquen * x NEGRO Rio Negro * * * * xo x 0 SOUTHERN Chubut * * x PATAGONIA Santa Cruz * * . * * x Tierra del Fuego , * * * * * x * First priority (2000) * Short Term (2000-2002) x Medium Term (2002-2007) (Priority actions in the Provinces are suggestions and may be adjusted in specific cases.) (1) Depending on the conditions in each province, the legal or institutional aspect will first be covered within the existing legal framework. If it is not considered necessary or timely to make immediate modifications to laws and regulations, it is at least worthwhile to identify the changes that should be proposed. There are cases in which laws are adequate, but the institutions lack the capacity to ensure compliance. In other cases, institutional strength has made up for deficiencies in the law. Of course, institutional development should include national and provincial authorities as well as private service operators and users' consortia, as well as regulatory agencies. 33 ANNEXE S I ANNEX 1: PROVINCIAL GROUPING BY REGIONALIZATION OF WATER RESOURCES REG PROVINCES REGIONAL CHARACTERISTICS GNP" Climate: Humid Tropical Precipitation: 800-1500 Regime: Rainy GNP: 42 -FORMOSA mm/year % of national ; -CHACO Main Rivers: ParanA, Paraguay, Uruguay, Bermejo and Pilamayo GNP: 14% > -MISIONES Avg. Annual Flow: 18,360 m'/sec Anl. Vol. 579 Km'/year GNP per 3 -CORRIENTES Groundwater Use: Slightly Relevant Municipal: 20% Rural: 50% inhab./year: C -SANTE FE Population Est Year 2000: 7,585,000 Urban: 78% Rural: 22% $5,873 O we -ENTRE RIOS Primary Water Resource Issues: Floods and Potable Water Primary Groundwater Issues: Aquifers are a Regional Extension of the Chaco Pampeano, ______________ tHighly Vulnerable to Contamination Climate: Semi-arid Precipitation: 200-800 Regime: Rainy GNP: 27 -SANTIAGO mm/year | % of national DEL ESTERO Main Rivers: Colorado, Sali Dulce, Primero, Segundo, Tercero, Cuarto and Quinto GNP: 9% -CORDOBA Avg. Annual Flow: 178 m'/sec AnI. Vol. 6 Km'/year GNP per -LA PAMPA Groundwater Use: Relevant Municipal: 10% Rural: 50% inhab./year: Population Est. Year 2000: 4.1 million Urban: 79% |Rural: 21% $6,883 Primary Water Resource Issues: Water Quality, Contamination, Irrigation, Rural Floods, Rural Water Supply Primary Groundwater Issues: Chaco Pampeano and Intermontane Aquifers, Water Quality, Contamination Climate: Arid Precipitation: 100-500 Regime: Rainy- GNP: 40 -JUJUY mm/year I Snowy % of national -SALTA Main Rivers: Desag&iadero, San Juan, Mendoza, Tunuyan, Diamante, Atuel and those GNP: 13% -TUCUMAN without sea outlet GNP per -CATAMARCA Avg. Annual Flow: 321 m'/sec Anl. Vol. 10 Km'/year inhab./year: -A RIOJA Groundwater Use: Very Relevant Municipal: 35% Rural: 65% $7,069 -SAN JUAN Population Est. Year 2000: 6.1 million Urban: 75% Rural: 25% i -SAN LUIS Primary Water Resource Issues: Groundwater Contamination, Irrigation Modernization, > O -MENDOZA Salinized Land and Flooding ; 0 Primary Groundwater Issues: Discontinuous Aquifers Tightly Bound to Intermontane Z Z Rivers, Vulnerable to Salinization Due to Strong Evaporation Climate: Humid Precipitation: 800-1000 Regime: Rainy GNP: 182 -BUENOS mm/year % of national -AIRES Main Rivers: Parana, Paraguay, Uruguay GNP: 62% X4 -DIST. Avg. Annual Flow: 18,408 mi/sec An]. Vol. 580 Kmr/year GNP per FEDERAL Groundwater Use: Relevant Municipal: 30% Rural: 70% inhab./year: Z < Population Est. Year 2000: 17.3 million Urban: 95% Rural: 5% $11,100 X A3 Primary Water Resource Issues: Water Quality, Groundwater Contamination (natural, ;; 2 urban and agricultural) Primary Groundwater Issues: Regional Aquifers of the Chaco Pampeano Highly Vulnerable to Natural, Urban and Agricultural Contamination Climate: Arid Precipitation: 200-400 Regime: Rainy- GNP: 9 O -NEUQUEN mm/year Snowy % of national -RIO NEGRO Main Rivers: Negro y Colorado GNP: 3% Avg. Annual Flow: 1,095 mr/sec Anl. Vol. 35 Km'/year GNP per Groundwater Use: Slightly Relevant Municipal: 10% Rural: 20% inhab./year: O Population Est. Year 2000: 1,180,000 Urban: 80% Rural: 20% $8,828 o O Primary Water Resource Issues: Irrigation Modernization, Salinized Land, Rural Water Supply Primary Groundwater Issues: Use of Groundwater Climate: Arid and Cold Precipitation: 200 m/year Regime: Rainy- GNP: 9 -CINHABUT Snowy and Glacial %:of national -SANTA CRUZ Main Rivers: Santa Cruz, Chubut, Senguer, Chico and Gallegos GNP: 3% Z -TIERRA DEL Avg. Annual Flow: 896 m'/sec Anl. Vol. 28 Km /year GNP per O FUEGO Groundwater Use: Slightly Relevant Municipal: 10% Rural: 20% inhab./year: Population Est. Year 2000: 770,000 Urban: 87% Rural: 13% $13,584 Primary Water Resource Issues: Potable Water for Rural Populations, Irrigation ______________________ cModernization, Irrigation and Salinization NOTE: In the Colorado river basin, the provinces of Buenos Aires, La Pampa and Mendoza should also be considered. In the Rio Negro basin, the province of Buenos Aires should also be considered. Moreover, the Desaguadero river and its discharges into the Colorado river in the provinces of Buenos Aires, La Pampa and Rio Negro should be considered'. GNP is in billions of US$. "Per capita GNP is in US$/inhabitant/year. II ANNEX 2: INTERNATIONAL EXPERIENCE THAT MAY BE USEFUL TO ARGENTINA COUNTRY INTEGRATED MANAGEMENT WATER SERVICES WATER ADMINISTRATION ENVIRONMENTAL PROTECTION Mexico . Participation of users in reclamation and * Transfer of irrigation . Management instruments: . Short-term "ecological price" to conservation of aquifers. districts to users . Concession withdrawal titles and establish scenario of long-term a Collection of irrigation fees effluent disposal permits. sustainable development. by users' associations . Diagnostic- of hydrographic regions; . Reclamation of salinized lands. . Modernization of irrigation National Hydraulic Plan. . Register constantly updated. . Charging of fees for use and effluent disposal. Chile N.A. * Transparent subsidies for * Cultural tradition of utilizing . Experiments with disposal tariffs. payments of water to poor demand instruments. users South Africa . New National Water Law with objective N.A. . Simultaneous preparation of draft . Legal mandate to separate water for of achieiving equity, accepting the laws and definition of systems and minimum human needs and the limitation of water resources in the procedures to apply them, with the environment. country, and the convenience of objective of achieving more realistic regional specifics and of gradually projects and starting up programs in implementing the law. a timely manner to develop institutional and users' capacity. Brazil * Royalties generated by hydropower * Beginning to charge for * Examples of Ceara and Bahia. * Environmental crimes not securable. generation to maintain a national water abstraction fees. * Sao Paulo. * (Some) national and state laws geared hydrometric network * Tariffs generally adequate * National Water Law (1997) and toward "polluter pays." * Experiments with basin committtees. in water companies; should creation of Secretariats of Water * Multisectoral water councils. improve rate of recovery Resources at federal and state levels. and efficiency. United States * Variety of state and/or regional * Tariffs generally adequate. * Mix of state and market * Experiments with environmental irrigation districts, users' associations * Municipal and private administration. markets, disposal tariffs, and - and basin committees. companies generally * Increased private sector participation negotiated environmental agreements. efficient. and consolidation of companies. * Use of technology for conservation/re-use of water. Canada * Good experience with integrated N.A. * Decentralized management by * Intensive and satisfactory monitoring. management. provinces and basins. Australia * Integrated management experience in * Irrigation districts * Decentralized management by N.A. arid climate with water scarcity. transferred to users. provinces and basins. * Sustainable irrigation tariffs. N.A.: Not Applicable III ANNEX 3: CURRENT STATUS OF IRRIGATION IN ARGENTINA (data in ha) Salinity Province Surface (ha) Climate Region drainage problems w/lnfrast Irrigated Arid Semiarid Hu mid Rice BUENOS 136,086 174,630 75,983 0 98,647 0 27,217 AIRES CATAMARCA 46,220 27,600 22,400 5,200 0 0 0 CHACO 0 12,000 0 0 3,500 8,500 0 CHUBUT 24,000 11,600 9,900 1,700 0 0 0 CORDOBA 70,919 104,926 28,270 26,000 50,656 0 0 CORRIENTES 0 84,650 0 0 2,450 82,200 0 ENTRE RIOS 0 141,800 0 0 7,600 134,200 0 FORMOSA 4,000 8,850 0 200 150 8,500 0 JUJUY 100,900 87,113 3,400 83,713 0 0 2,500 LAPAMPA 10,320 4,180 4,180 0 0 0 0 LA RIOJA 16,060 21,330 21,330 0 0 0 0 MENDOZA 474,497 293,485 293,485 0 0 0 267,300 MISIONES 0 300 0 0 0 300 0 NEUQUEN 20,906 21,330 2p1,330 0 0 0 2,500 RIO NEGRO 137,620 103,127 86,938 460 0 0 45,819 SALTA 252,700 115,677 12,919 94,780 0 0 9,500 SAN JUAN 160,897 73,923 73,923 0 0 0 75,000 SAN LUIS 16,409 13,985 13,385 600 0 0 0 SANTA CRUZ 3,291 1,700 1,700 0 0 0 0 SANTA FE 0 46,877 0 0 30,877 16,000 0 SAN. DEL 139,418 76,905 74,405 2,500 0 0 83,501 ESTERO TIERRA DEL 11,000 11,000 FUEGO TUCUMAN 130,030 64,500 4,500 60,000 0 0 4,000 Total 1,744,273 1,495,839 759,048 275,153 193,931 249,900 517,337 IV ANNEX 4: MAIN ISSUES COVERED BY PROVINCIAL LEGISLATION REGION PROVINCE' 0 INTEGRATED WATER SERVICES WATER ADMINISTRATION ENVIRONMENTAL PROTECTION. D MANAGEMENT Autordad de aguas E Use Study, Flood Drnking Iniga Hy- Prio Det Assig Registra Water Confl Loss Preser Envi- Protection Basin project control water and tion3 dro- rity erm mmen tion policing ict of vation ron- of water mgmt and sewers elec- for vol t of and/or (Law resol rights and mental sources and works tri- use um rights cadastre Enforce- ution control polic- erosion city es ment) 4ing control S S C Servi Reg P A J A (Law U U A ce ulac U D U D enforce ______ ~~~ ~~P B CN i/sn D M ment) _ _ 1. LITORAL Formosa X - X I I X -X MESOPOTAMIA Chaco X X X x X x X X X X X X I X X Misiones X X X Corrientes X X X X X X X X X X X X X X X Santa Fe x X X Entre Rios 2. CENTRAL Sgo. del Estero XXX X X X X X X X PAMPA C6rdoba X XX X I _ X X X X X X _ X X La Pampa X X X X X X 3. NUEVO CUYO Jujuy X X X X X X X X X X X X X X x x x x x NORTHWEST Salt X X X X X XX X X X X X X X X _ X X X X X Tucumin X X X X X X X X X X X X X Catamarca XX X x _ X X X x x Xi _ x X La Rioja X X X X X X X X X X X X X X San Juan X XX X X X XX X X X X X San Luis X X X x X ___ Mendoza X X X X X X X X X X X XX X X X X X X X 4. GBA PAMPA P.de Bs. As. X X X X X X X - X - - X X X H(JMEDA Distrito Federal _ _ -- _ - _ _ _ _ 5. COLORADO RIO Neuquen X x X X X X X X X X X X x x NEGRO Rio Negro X XX X X X X XX -X X X X X X X X 6. PATAGONIA Chubut XXX X X X XiI X X_ SUR Santa Cniz x -- - _ _ _ _-X _ _ _ Tierr del Fuego = - - _ X - = - - - - = X X X 'Infornstion was dnwn from docatents that contained legal quote and provincal legislation that was accessible. Consequently, gaps recorded do not necessarily indicate a lack of regulation on the matter. 'SUP= Surface ater. SUB= Groundwater. CAN= Canon for mater resource use 3PU= Paeticipation by Users. AD= Adjustment of lands for irrigation. 'Conflict resolution: 1UD: Ordinary legal proceedings. ADM: Administrative water justice. V ANNEX 5: REGIONALIZATION OF KEY ISSUES, GAPS AND POLICY OPTIONS (page 1 of 2) REGION PROVINCE KEY ISSUES AND DEFICIENCIES POLICY GAPS POLICY OPTIONS * In general, water in sufficient quantities, but * Lack of legislation and actions * Seek adequate technology. Formosa there is no quality groundwater in Chaco and dealing with land-use planning. Santa Fe. Chaco * Groundwater contamination: * Rural: Establish non-structural measures (soil use * Risk from fertilizers and pesticides. management, minimum tillage) and structural measures LITORAL - Misiones * Poorly finished irrigation wells are means (sustainable maintenance of drains, fords and sewers with of contamination. sufficient capacity for roads). MESOPO- Corrientes * Over-extraction causes salinization and * Urban: Establish municipal regulations for management of TAMIA contamination from arsenic and fluorine. flood-prone areas. Santa Fe * Floods in urban and rural zones. * Title, register and charge for uses and disposal as a management tool. Entre Rios CENTRAL - Santiago d. Estero * Water abundant in some zones and very * Evaluate importation of water against de-contamination. C6rdoba scarce in others, but rivers, lakes and aquifers * Title, register and charge for uses and disposal, as a PAMPA La Pampa polluted (from municipal dumping and from management tool. metal-mechanical, automotive, military and nuclear industries). * Some zones with shortages. Jujuy * 75% of the country's irrigation, but 50% of * Outdated agricultural technology * Recovery of soils through drainage. Salta surface salinized or waterlogged, and makes it difficult to compete in * Rehabilitate idle infrastructure and modernize irrigation. Tucumain obsolete technology. international markets. * Launch agricultural modemization program. Catamarca * Three connected aquifers that contaminate * Incipient awareness of interactions * Carry out integrated management of soils and quantity and NUEVO La Rioja each other. of surface and ground water quality quality of surface and ground water for purposes of land-use CUYO - San Juan * Pollution from agriculture, mining, oil and quantity . planning consistent with sustainable use of resources. San Luis drilling and military industry. * Non-integrated management of * Make use of multi-annual regulation that aquifers can offer. NORTH- Mendoza * Non-use of melted icepack because water and associated natural * Induce recharging with small dams. WESTH- Mendoza recharging is not induced. resources. * Selectively cap wells. WEST T Title, register and charge for uses and disposal, as a management tool. VI ANNEX 5: REGIONALIZATION OF KEY ISSUES, GAPS AND POLICY OPTIONS (page 2 of 2) REGION PROVINCE KEY ISSUES AND DEFICIENCIES POLICY GAPS POLICY OPTIONS . The country's largest demographic, * Non-integrated management of * Carry out integrated management, in a large urban area above a agricultural and livestock, and industrial water, urban infrastructure and contaminated aquifer, of water supply, sanitation and land-use concentration, but with abundant water. related natural resources. planning. GREATER P. of Buenos Aires * Multiple sources of pollution: * Title, register and charge for uses and dumping, as a * Agricultural drains that flow down from * Lack of legislation and actions on management tool. BUENOS higher areas and collect industrial land-use planning. * Implement management of demand before building more discharges. infrastructure. AIRES Federal District * Septic tanks. * Lack of legislation and actions to * Act upstream (regulatory framework, measurement and * Irregular sources due to complementary protect aquifers from risk of tariffs) to decrease volumes by dislodging and treating water - PAMPA irrigation. agrochemical pollution., downstream. * Losses and waste of drinking water: HUMEDA * 488 I/inhab/day. * Regulate complementary irrigation and monitor water to detect * No meters and tariff per m2. pollution. * Replacement of wells contaminated with surface water. * Unnecessary increase of volumes by dislodging and treatment. * Urban floods by: * Increase in runoff coefficients. * Clogging of sewers. * Saturation and overflowing of groundwater by septic tanks. COLORADO Neuqudn * Vast zone without rivers between the Negro * Outdated agricultural technology * Recover soils through drainage. ____________________ and Chubut rivers. makes it difficult to compete in * Rehabilitate idle infrastructure and modexnize irrigation. Rio Negro * Irrigation in higher zones with problems intemational markets. * Launch an agricultural modemization program. RiO NEGRO similar to those of Mendoza. SOUTHERN Chubut * Arid, cold climate with continental ice sheets * Lack of legislation and actions PATAGONIA at altitudes. dealing with land-use planning. * Pollution from mining and petroleum. Santa Cruz * Low population. Tierra del Fuego VII ANNEX 6. PROPOSED ACTION PROGRAM (page 1 of 2) PRIORITY ACTIONS OBJECTIVES KEY ISSUES POLICY INSTRUMENTS * Stop the accelerated deterioration of * Accelerated deterioration of one of * Strengthening of INA (former CRAS) Regional Centers, with accelerated aquifers due to natural contamination and the country's strategic water assets. training of its experts and technology transfer. I. Protection and careless protection. * Outdated technology for the analysis * Emergency program to cap contaminating wells in Mendoza. * Restore and conserve groundwater which and management of aquifers and * Programs to implement protection perimeters around aquifers reserved Management of is a national asset and prinicpal source of their integration in the overall for drinking water supply. Groundwater water supply to the rural population. management of water and soil * Aquifer recharging projects (Mendoza, San Juan, Santa Fe). Resources resources. * Prevention awareness program on agrochemical pollution of aquifers. * Recent Mexican experience. * Program to support the creation and strengthening of structures to coordinate aquifer management. Structure and implement essential database for * Fragmented and scattered data and * Structuring of an information system with databases on water resources, integrated, transparent water resources information on water resources. including all aspects (quantity, quality, pollution, uses, costs, tariffs, II. Design and management. * Difficulty of inter-institutional institutions, laws, regulations and standards) and adequate geographical of ~~~~~~~~~~~~~~~~~communication and coordination, referencing (SIG). Implementation of . Fragile information support for * Implementation of system at national and provincial level, beginning National and Provincial understanding of water systems and with Mendoza, San Juan, Catamarca, Tucuman, C6rdoba and Santa Fe. Water Resources decision-making. Management Information Systems Achieve sustainable use of Argentina's water * Variety of provincial laws and * Initiate planning in representative basins or groups of basins, as an resources. scattered institutions. additional step toward managing water resources by basin and toward the III. Integrated Water Political strength of provinces. preparation of a water resources management Master Plan. Resources Management * ~~~~~~~~~~~~Opportunity to value water as an * Expand coverage of flood wamning systems. Resources Management economic asset and improve * Achieve a national-provincial agreement on the principles that the Law of economic efficiency of water Minimum Prerequisites for Water Resources should contain, while resource utilization. adjusting provincial laws in a group of provinces that share serious * Opportunity to carry out joint problems in a basin. management of quantity and quality. * Support the simulation, on paper, of the implementation of draft national * Planning of basin management. and provincial laws to test their feasibility and establish programs to * Prospective view and planning. develop necessary capacities. * Modemization, updating and use of * Establish systems to expedite, register and monitor concession titles and Registry as a management tool. disposal permits, as well as to analyze the suitability of introducing fees * Experience of Mexico. charged for both, as a water resources management tool and an essential * Creation and/or strengthening of requirement for promoting, in this case, the water rights market. Basin Agencies. Reduce pollution in selected rivers, lakes and * Provincial standards for wastewater * Propose a realistic strategy to improve water quality and prevent aquifers, and implement preventive measures. disposal are diverse and lack pollution. Iv. Improvement of compliance. * Recover and protect sources of supply. Water .Quality and * Anarchy in solid waste management. * Develop an ESW to prQpose solutions to the solid waste problem. Water Quality and . Industrial pollution. * Analyze the appropriateness of implementing pollution charges based on Sanitation polllution load indices, by productive or service category. C: Short-term (2000 - 2004), M: Medium-termn (2005 -2010, L: Long-term (After 2010) VIII ANNEX 6. PROPOSED ACTION PROGRAM (page 2 of 2) PRIORITY ACTIONS OBJECTIVES KEY ISSUES POLICY INSTRUMENTS Provide "safe water" economically and * Public health problems. * Evaluate aqueducts vs. timely solutions. sustainably to the 4.5 million inhabitants in rural * Scattered population. * Apply appropriate technology V. Supply of "Safe areas. * Good-quality supply sources are * Water: Water for drinking and cooking purified with membrane distant; groundwater contaminated technology. For other uses water filtered and disinfected. Water" for Rural by pathogens, arsenic, fluorine, * Sanitation. Areas and Small Cities nitrates and salt. * Utilization of "dual" systems. * High unit costs. Halt the progress of drainage and salinization * 555,000 ha affected by drainage * Develop private sector capacity and promote its participation. problems to increase productivity and problems. * Install mobile plants to construct pipes for on-site drainage. VI. Recovery of profitability. * 584,000 ha salinized. * Carry out through public works only essential components such as Salinized and * Overlapping of both problems. large collectors. S Low productivity. * Promote innovative financial mechanisms; for example, subsidize the Waterlogged Irrigation . Abandoned lands. drainage of 50% of a surface so that the financially strapped farmer is Lands . Experience of Mexico. able to obtain credit for the other 50%. * Financial mechanisms. * Leam from the Mexican experience. Efficient and profitable use of water resources * Minimum surface with modern * Promote financial mechanisms to introduce efficient irrigation in arid zones. irrigation. technologies. VII. Modernization of * Outdated irrigation of fruit trees * Use the principle of inherent rights to adjust and modemize the . . Inter-sectoral reallocation of surplus. using furrows. titling and registration of users. Irrigation * Water rights inherent to land * Promote sustainable tariffs and volumetric measurement. ownership. * Modemize the management of associations (operational agencies). * Low efficiency and productivity of water. * The water that will be saved is the last water resource available to arid zones and constitutes a potential for inter-sectoral reallocation. * Grant greater decision-making power and financial autonomy to users' associations. * Improve ability to charge, and tariff value. * Promote water saving. * Experience of Mexico. Economically and sustainably mitigate the * Poorly operating macro-drainage * Introduce soil use management focus. effects of floods on rural communities - 4 to 5 system due to lack of maintenance. * Make use of positive experience of rural road maintenance consortia VIII. Flood million ha under agricultural production. * Flash floods in the humid pampa. to maintain drains. * Soil management in micro- * Incorporate the above concept in the Users' Law for Soil Management in Rural catchments with closed valleys, Conservation, which is-in the process of being modified. Areas without considering risk factors for * Introduce sustainable financial mechanisms for maintenance. use of natural potential. * Establish adequate management of basins without sea outlet. * Repair rural roads. Ix ANNEX 7 LIST OF PARTICIPANTS AT PROVINCIAL DISSEMINATION WORKSHOPS USHUAIA, TIERRA DEL FUEGO 17-18 APRIL, 2000 Victor Pochat Under-Secretary of Water Resources, Federal Government Under-Secretariat of Water Resources (SSRH) Javier Pascuchi National Director of Water Resources, Idem SSRH Claudio Laboranti Advisor, SSRH Idem Cora Bonet Coordinator, Water Planning Program, Idem SSRH Matilde Hildebrandt Director of Water Resources, Under- Chubut Secretariat of Natural Resources Horacio R. Collado General Superintendent, DPA, and Rio Negro Representative of the Interjurisdictional Authority of the Limay, Neuquen y Negro River Basin Jaime Alvarez Provincial Director of Water Santa Cruz Resources, Provincial Bureau of Water Resources Adriana Urciuolo Head, Department of Water Resources Tierra del Fuego Rodolfo Iturraspe Department of Water Resources Idem Maria Teresa Fernandez President, Provincial Bureau of Idem Sanitation Works and Services (DPOSS) Luis Fernandez Director-General, DPOSS Idem M6nica Obreque Head, Department of Works, DPOSS Idem Luis M. Prado Director of Engineering, DPOSS Idem Various Provincial Legislators Idem Juan Enrique Perl Technical Director, Interjurisdictional Committee of Rio Colorado (COIRCO) Adalberto Comejo President, COIRCO_ Carlos Alberto Yema President, Dam Regulatory Agency Rio Negro (ORSEP) Carlos Schroeder Head, Database, Southern Center for Scientific Research (CADIC) Ricardo Santolaria Director, Bureau of Environmental Tierra del Fuego Management Jose Simas Irrigation Engineer World Bank Janice Molina Program Assistant Idem x TUCUMAN 24-25 APRIL, 2000 Javier Pascuchi National Director of Water Policy, Federal Government Under-Secretariat of Water Resources (SSRH) Claudio Laboranti Advisor, SSRH Idem Cora Bonet Coordinator of Water Planning Program, Idem SSRH Roberto Bergmann Civil Engineer, SUCCE Idem Ignacio Zelmeister Coordinator, Housing Subprogram, Idem SUCCE Juan Elias Barquet Under Secretary, Ministry of Public Santiago del Estero Works and Services Luis Alberto Juarez President - Auditor, Provincial Water Idem Resource Administration Juan Carlos Targa Director, General Bureau of the Idem Environment Ram6n Vargas Member, Provincial Water Chaco Administration (APA) Hugo Rohrmann President, APA Idem Roberto Olivares Director, Under-Secretariat of Natural Idem Resources and Environment Delia Acevedo Controller, Corrientes Water Institute Corrientes Esteban Talamo Head, Auditing Subprogram, Secretariat Salta of Environment and Sustainable Development Osvaldo Mayo Director of Engineering and Water Misiones Resources, Misiones Institute of Water and Sanitation Javier Camisasso Administrator, General Water Catamnarca Administration Augusto C. Acufia Secretary, State Secretariat of Idem Environment Carlos Eduardo Raya Head, Construction Department, Water Tucuman Bureau Guillermo Niederle Deputy Head, Est. and Projects, Water Idem Bureau Anibal Comba Head, Crop and Irrigation Division, Idem General Irrigation Bureau Hugo Salas Advisor, Environment Bureau Idem Jos6 Ricardo G6mez Head, Department of Public Idem Works/Administration, Water Bureau Sergio Hernandez Coordinator, Public Works Coordination Idem Office Luis Suayter Deputy Head, Drilling Department, Idem Water Bureau Patricia de Arriazo Advisor, Environment Bureau Idem Juan Gonzalez Director, Environment Bureau Idem XI Antonio Roldan Consultant, River Basin Systems, Contr. Idem Investment Fund Council Rafael Dias Guzman Regional Director, ORSEP Idem Roque A. Juarez Deputy Auditor, SEPAPyS Idem Azucena Haddad Translator-Interpreter, Office of the Idem Governor of Tucuman Carlos Mario Occhipinti Head, Environment Department, Idem Provincial Water Bureau Federico Soria Environmental Data Officer, Idem Environment Bureau Florencia Sagayo Legal Advisor, Environment Bureau Idem Jose Simas Irrigation Engineer World Bank Hector Gardufio Consultant Idem Janice Molina Program Assistant Idem MENDOZA 27-28 APRIL, 2000 Victor Pochat Under-Secretary of Water Resources, Federal Government Under-Secretariat of Water Resources (SSRH) Javier Pascuchi National Director of Water Policy, Idem SSRH Claudio Laboranti Advisor, SSRH Idem Cora Bonet Coordinator, Water Planning Program, Idem SSRH Humberto Aubone Chief of Engineering, Bureau of Energy San Juan Resources Norberto Bucich Director, INA-CRSJ Idem Horacio G. Levit Urban Planning Expert, Ministry of Federal Government Interior - SUCCE Hugo Schmidt SUCCE Idem Adolfo Alvarez Director, Hydraulics Department Idem Gerardo Salvioli Coordinator of Programs, INA-CRSJ Idem Ruben E. Ottonello Director, River Basin Management, La Rioja Provincial Water Administration (APA) Matilde Hildebrandt Director of Water Resources, Under- Chubut Secretariat of Natural Resources Nestor Perez Technical Advisor, SSRH Idem Waldo Sanjurjo Director, EPIH San Luis Hector Filipello Director, SSRH Idem Jorge Maza Director, INA-CRA Mendoza Nicolas Martinis Program Coordinator, INA-CRA Idem Carlos M. Mirabile Project Officer, INA-CRA Idem Amilcar Alvarez Program Officer, INA-CRA Idem Eduardo Mu-noz Director, EPAS-Mendoza Idem Ricardo R. Claverol Water Resources Manager, EPAS Idem XII Raul A. Cicero Manager, Management Control, Idem OSMSA, UIN Adolfo Pagliarulo Director, CEMPSA Idem Hugo Mattiello Director, Member, EPRE-Mendoza Idem Hugo Reos President, EPRE-Mendoza Idem Armando Bertrandou Researcher, INA-CELA-UNCuyo Idem Osvaldo Asensio Advisor, III Irrigation Zone Idem Jorge Chambeuleyron Professor, UNC-FEAGRARIAS Idem Javier Zuleta Director, Research and Planning, DGI- Idem Mendoza Jorge Day Economist, DGI-Mendoza Idem Jose Reta Director, Water Policy Idem Elsa Correa de Pav6n Researcher, CELAA-INA Idem Armando Llop Director, CELA-INA Idem Osvaldo Gutierrez Advisor, Technical Secretariat, MAyOP Idem Nestor Arias Advisor, Technical Secretariat, MAyOP Idem Jose Pappalardo Advisor, Bureau of Hydraulics Idem Juan C. Aguilera Director, Bureau of Hydraulics Idem Carlos A. Santilli Deputy Secretary of Infrastructure, Idem Ministry of Environment and Public Works Martin Garbuio Secretary G.I., General Bureau of Idem Irrigation Laura Fagot Deputy Secretary of Environment, Idem Ministry of Environment and Public Works Eduardo Ramet Technical Advisor, PROSAP-Ministry Idem of Economy Raquel Gutierrez Dissertation Candidate, UBA Jorge 0. Khoury Advisor, SDSyPA Federal Government Cesar Magnani Legal Advisor, Under-Secretariat of Water Resources Aldo Rodriguez Advisor, DGT Eduardo Muller Advisor, National Senate Federal Government Mirta Gariglia President, Water Resources Idem Commission, National Senate Jose Simas Irrigation Engineer World Bank Hector Gardufio Consultant Idem Janice Molina Program Assistant Idem LA PLATA 2-3 MAY, 2000 Victor Pochat Under-Secretary of Water Resources, Federal Government Under-Secretariat of Water Resources, (SSRH) Javier Pascuchi National Director of Water Policy, Idem SSRH . Claudio Laboranti Advisor, SSRH Idem XIII Cora Bonet Coordinator, Water Planning Program, Idem SSRH Jorge Acosta Executive Director, SUCCE, Ministry of Idem the Interior Horacio G. Levit Exp. UJrban Planning, SUCCE, Ministry Idem of the Interior Juan C. Gimenez ConsLultant, SUCCE, Ministry of the Idem Interior Adolfo Luis Cerioni President, National Institute of Water and the Environment Ricardo Rebagliati Executive Chiief, Executing Unit, City of Buenos Aires SUPCE Oscar H. Bravo Zattera Consultant, SUPCE Idem Juan A. Zubeldia Civil Engineer, SUPCE Idem Guillermo Peralta Deputy Secretary of Public Works, Province of Buenos Ministry of Public Works and Services Aires Angel Maydana Provincial Director of Sanitation and Idem Water Works Jorge Salguero Tecnllical Director, Bureau of Sanitation Idem and Water Works Adalberto S. Cornejo President, Rio Colorado Idem lnterjurisdictional Committee - COIRCO Juan E. Perl Technlical Manager, COIRCO Idem Cesar Bertucci Provincial Bureau of Water and C6rdoba Sanitationi Ines Bernasconi Idem Idem Dagni Schneider Idemn Raul Lasso Institutional Relations, C6rdoba Idem Environmental Agency Guillermo Jose Verdugo Pollution Control Area, Secretariat of Santa Fe Environment and Sustainable Development Ricardo Fratti Provincial Director of Hydraulic Works Idem Carlos A. Ricciardi Under-Secretary, Under-Secretariat of Entre Rios Water Resources Ana Muguetti Secretary, Argentine Institute of Water Resources -IARH Pepe Gerardo Member, IARH Juan A. Schnack Advisor, CONIC Consultant, SUCCE Fernando de Franchesco Geologist, CONIC Idem Luis E. Garcia Water Resources Specialist IDD Jose Simas Irrigation Engineer World Bank Hector Gardufno Consultant Idem Janice Molina Program Assistant Idem XIV ANNEX 8 INDEX OF VOLUME II (INTEGRATION REPORT) (in Spanish only) Page INTRODUCTION AND OBJECTIVES .................................................. 10 1.1. Introduction 1.2. Objectives 2. WATER RlESOURCES IN ARGENTINA .............................................. 13 2.1. Regionalized View of the Country's Water Resources 2.1.1. Geography, climate and water resources 2.1.2. Economic activities 2.1.3. Population 2.1.4. Regionalization 2.2. Availability and Quality of Water Resources 2.2.1. Surface water 2.2.2. Groundwater 2.3. Water Uses 2.3.1. Drinking water and sanitation 2.3.2. Irrigation and other agricultural uses 2.3.3. Industry 2.3.4. Generation of hydroelectricity 2.3.5. Other non-consumptive uses 2.3.6. Environmental conservation 3. KEY ISSUES, DEFECTS, OPORTUNITIES AND OPTIONS .......................... 26 3.1. Water Management 3.1.1. Conflicts caused by shortage 3.1.2. Preservation of water quality and pollution control 3.1.3. Groundwater management 3.1.4. Management of surface water and floods 3.1.5. Integration water management and associated resources 3.1.6. Management of communication, infornation and coordination 3.2. Institutions and Laws 3.2.1. Institutions 3.2.2. Laws 3.2.3. Defects and opportunities 3.3. Economic and Tariff Value 3.3.1. Charges for water availability, use and services 3.3.2. Drinking water and sanitary sewers 3.3.3. Water for irrigation xv 3.3.4. Other water uses 3.3.5. Economic/financial deficits and options 3.3.6. Extemnalities 3.4. Lessons from International Experience 3.4.1. Mexico 3.4.2. Chile 3.4.3. South Africa 3.4.4. Brazil 3.4.5. United States 3.5. Policy Options 4. A POSSIBLE STRATEGY ................................. 56 4.1. A Constructive, Rather than Reactive, Attitude 4.2. General strategy 4.3. Basic Guidelines for Regional Strategies 4.3.1. Litoral and Mesopotamia 4.3.2. Central and Pampa 4.3.3. Nuevo Cuyo Region and Northwest 4.3.4. Greater Buenos Aires and Pampa Hiumeda 4.3.5. Colorado and Negro River Region 4.3.6. Southern Patagonia 4.4. Main Issues of National Interest 4.4.1. Pragmatic adjustment of legal and institutional framework and security of water rights 4.4.2. Economic value of water and strengthening of analytical capacity 4.4.3. Communication and participation 4.4.4. Management of water resources information system 4.5. Political "Momentum" 5. TOWARD A NEW WATER POLICY .................................................. 70 The challenge A constructive view Policy options A realistic, flexible and regionalized strategy 6. WATER POLICY AND ACTION AGENDA ...................................... 76 Water policy framework National consensus for the XXI century Agenda and priorities 6.1 Laws and regulations XvI 6.2 Communication and citizen participation 6.3 Water Resources Master Plan 6.4 Aquifer protection and supply of safe water to the population 6.5 Reclamation of lands with drainage and/or salinization problems 6.6 Modernization of institutions and water resources management technologies 6.7 Drastic reduction in wasted water 6.8 Modernization of irrigation sector 6.9 Rural and urban drainage 6.10 Water pollution control 6.11 Improvement of analytical basis for management The next stage in implementation ANNEXES Matrixes 1. National functions related to water resources management 2. Provincial functions related to water resources management and consistency with the existence of legal support 3. Interprovincial agencies 4. Issues covered by provincial legislation 5. Constitutional aspects related to water resources management 6. Constitutional aspects related to water resources management 7. Draft laws (bills) dealing with Minimum Prerequisites related to water resources management 8. Context for placement of actions that could support comprehensive water resource management in Argentina 9. Summarized description of possible actions Tables 1. Surface area and population at provincial level 2. Economic indicators at provincial level 3. Precipitation and irrigated surface at provincial level 4. Composition of Gross National Product 5. Coverage of water and sewer services by province References XVII ANNEX 9 INDEX OF VOLUME III (THEMATIC ANNEXES) (in English and Spanish) ANNEX A: Legal, Regulatory and Institutional Framework of Water Resources Regina Martinez and Cesar Magnani ANNEX B: Economic and Financial Aspects Juan Carlos Gimenez and Musa Asad ANNEX C: Groundwater N.Q. Trac ANNEX D: Irrigation in Argentina Juan Carlos Miller, Guillermo Wood and Jose Simas ANNEX E: Water Quality Problems in the Provinces of C6rdoba, Tucumain, Catamarca and Mendoza Francisco Jose Lobato ANNEX F: Water And Sanitation Sector In Argentina. Review And Strategy Maria Angelica Sotomayor ANNEX G: Lessons from International Experience Hector Gardufio, Jose Simas and Musa Asad ANNEX H. Concept Document Jose Simas ANNEX I. Terms of Reference for the Design and Institution of a Systematic Process to Plan the Integrated Management of Water Resources in Argentina Hector Gardufio and Jose Simas XVIII ANNEX 10 METHODOLOGY FOR PREPARATION OF FINAL REPORT The first draft of this document was discussed with SSRH. A second draft was analyzed at four provincial workshops by provincial representatives. Annex 7 shows the lists of participants at each meeting. The second draft was sent by SSRH to all provinces prior to the meetings. At each of the meetings, after an introduction by the head of SSRH or his representative, the Bank's Task Team Leader presented a summary of the report, advising that it should not be considered a proposal for specific actions, but rather a document whose purpose was to encourage discussion. Participants were asked to provide their frank critiques for the purpose of improving the document. Emphasis was placed on the following points: * It was important to know their viewpoints with regard to priorities and proposed focuses of solutions, and make the modifications that the participants considered necessary. * It was important for the participants to define key issues and the way in which they want the Bank to participate. In other words, the stakeholders and protagonists of the Integrated Management of Water Resources in Argentina are the Argentines themselves. The participants shared this focus and the principal results and conclusions of the meetings were: * The document was enriched by the participants' contributions, both by improving specific information and the diagnostic, and by reorienting or modifying some of the proposed solutions to make them more in accordance with the characteristics of each province. - Within the framework of respecting the provinces' constitutional autonomy in terms of the management of their water resources, it was acknowledged that there is a need to establish uniform, nationwide working principles and procedures in order to ensure consistency among provincial proposals and facilitate the sharing of experience among provinces. - It became evident that in various provinces there have been successful, diverse experiences in the integrated management of water resources. These experiences, together with other successful Argentine and international experiences presented in the report, constitute a set of best practices that could be used by the provinces. Due to space limitations in the report, it is not feasible to include all Argentine experiences but the SSRH could make of file of them and facilitate their dissemination. * All provinces agreed to the institution of a systematic process of water resource planning. They also made useful proposals for inclusion in the terms of reference in order to establish this process. = The SSRH's role in the planning process would be to propose required procedures and integrate provincial plans in the National Master Plan for Water Resource Management. At the SSRH's request, the Bank proposed Terms of Reference for the Design and Institution of a Systematic Process to Plan the Integrated Management of Water Resources in Argentina, which are included as Annex I of this report. 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