Financing River Basin Management in South America: An Overview of Charges and other Economic Policy Instruments
- Piura and Sullana (Peru), Zapotillo and Catamayo, Ecuador
From 31 August to 3 September 2016, Ecologic Institute's Rodrigo Vidaurre participated in a series of events on water management in the Chira-Catamayo basin, a transboundary river basin straddling the border between Peru and Ecuador. The events were part of a binational workshop of the EuropeAid project EcoCuencas, which aims to support South American water management in the context of climate change by assisting in the implementation of redistributive financial mechanisms. The presentation slides (in Spanish) are available for download below.
On 31 August Rodrigo Vidaurre presented in Piura (Peru) results and examples of the EpiWater project (work lead by Manuel Lago), focusing on the role of Economic Policy Instruments (EPIs) in water management. Using examples of EPIs applied in the German state of Baden-Württemberg, the presentation highlighted several design aspects relevant for creating the economic incentives that lead actors to implement measures improving water quality. An instrument aiming to generate resources for financing measure implementation and an instrument centred on creating incentives for actors were presented in more detail.
On 1 September Rodrigo Vidaurre presented in Zapotillo (Ecuador) an overview of charges as a tool for financing river basin management (work developed jointly with Josselin Rouillard and Ina Krüger). This is part of Ecologic Institute's work developing a Guidance Document for Latin America on the implementation of redistributive financial mechanisms in river basin management. Following a process perspective (selection, design, and implementation of financing instruments), the guidance aims to support water managers designing charging schemes by providing an overview of important design elements and of different practical possibilities for implementation.
In addition to local partners from Peru (ANA and IRAGER) and Ecuador (SENAGUA), the project includes Colombian (CuencaVerde) and Brazilian (Agencia PCJ) local partners. Further partners include OIEAU (project lead), Asconit Consultants, and OECD Water Governance Initiative (associ-ate).