Water resources management in Peru

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Peru: Water Resources Management
Withdrawals by sector 2000/2001	Domestic 12% Agriculture 80% Industry 6% Mining 2%
Total renewable water resources	1,913 billons of cubic meters (BCM)
Surface water produced internally	1,616 BCM
Groudwater	303 BCM
Overlap between surface and groundwater	303 BCM
Total external renewable water resources	297 BCM
Dependency ratio	15.5%
Per capita renewable water resources (2006)	58,321 cubic meters per year
Land Area	128.5 millions of hectares (million ha)
Agricultural land (% of land area)	17%
Equipped irrigated area (% of cultivated area)	27.7%
Equipped irrigated area	1.2 million ha
Irrigation systems
Surface irrigation	1.1 million ha
Sprinkler irrigation	0.12 million ha
Localized irrigation	0.07 million ha
Wetland designated as Ramsar sites (1986)	6.8 million ha
Hydropower generation (% of total electricity generation)	72%

The government of Peru is currently undertaking a major transformation on water resources management from a centralized approach focused on irrigation development in the coastal area to a river basin integrated water resources management expanding now to the highland and the Amazon regions. Despite important advances, such as the recent creation of a National Water Authority, many challenges remain, such as:

• increasing water stress in the coastal region
• deteriorating water quality
• poor efficiency in the irrigation sector
• lack of institutional capacity, and
• inadequate water supply and sanitation

Contents 1 Water management history and recent developments 2 Water resource base 2.1 Surface and ground water resources 2.2 Storage capacity and infrastructure 2.3 Water quality 3 Water resources management by sector 3.1 Drinking water and sanitation 3.2 Irrigation and drainage 3.3 Hydropower 3.4 Aquatic ecosystems 4 Legal and institutional framework 4.1 Legal framework 4.2 Institutional organization 4.3 Government strategy 4.4 International agreements 5 Water pricing and collection rates 6 Water related risks 7 Potential climate change impacts 8 Ongoing programs and initiatives 8.1 Cited references 9 Notes 10 See also 11 External links

[edit] Water management history and recent developments

In the past century, the Peruvian Government has been the chief authority for water resources management and the principal investor in hydraulic infrastructure. Hydraulic development has traditionally been aimed at regulation and irrigation infrastructure to cope with the increasing water demand of population growth and irrigation. In the 1950s and 1960s, the San Lorenzo dam and Tinajones dam, the largest Peruvian dams, were built in the northern region. In the 1970s, other mayor hydraulic infrastructures were developed, including dams and irrigation and drainage systems, mainly in the coastal region ^(MINAG)

In the past five years, the Peruvian Government has aimed to modernize water resources management (WRM). The National Water Resources Management Initiative, currently pending approval by the Peruvian Congress, aims to create a cohesive institutional and legal framework, financial sustainability for infrastructural O&M and development, conservation of aquatic ecosystems, and resilience to climate change impacts ^(Comision)

[edit] Water resource base

[edit] Surface and ground water resources

Peru has a large amount of available water resources, with 106 river basins and a per capita availability of 68,321 cubic meters (m³) in 2006. According to FAO estimates, the long-run average annual rainfall is 1,738 millimeters (mm). There is significant seasonal variability in river run-offs, two-thirds of which occur between January and April^(aquastat).

The Andes divide Peru into three natural drainage basins: Pacific basin (27.9 million ha), Atlantic basin (95.9 million ha) and Lake Titicaca basin (4.7 million ha). According to INRENA, the number of river basins under each of these drainage basins is as follows: Pacific basin, 53 rivers; Atlantic basin, 44 rivers; and Lake Titicaca basin, 9 rivers.

According to INRENA, the dry Pacific basin, with 37.4 BCM available per year, accounts for 1.8% of Peru's renewable water resources. Its 53 rivers, flowing west from the Andes, supply the bulk of the water to the coastal region. Of these rivers, only about 30% are perennial. From 1984 to 2000, the average water availability decreased to 33 million m3 and from 2003 to 2004 to 20 million m3. Agriculture accounts for the withdrawal of 14 million m3 (or 80% of total water use) and domestic withdrawals account for 2 million m3 (12% of total water use) ^(Pavez). The Atlantic basin holds 97% of all available water and receives nearly 2 billion cubic meters of rainfall per year. Agriculture also accounts for 80% of water use, while dometic use accounts for 14%. The Lake Titicaca basin receives 10 million cubic meters per year. In this basin, agriculture accounts for 66% of total water use, while domestic use accounts for 30% ^(Olson).

Key Characteristics of the Drainage Basins

Drainage Basin	Population (million)	Water availability (BCM)	Per capita water availability (m3)	Agriculture water use (%)	Domestic water use (%)
Pacific	279,7	37,363	2,027	53
Atlantic	958,5	1,998,405	291,703	32
Titicaca	47,0	10,172	9,715	13
Total	1285,2	245,940	77,534	98

Source: INEI (2007)

External resources of water enter Peru though tributaries of the Amazon, in the Atlantic river basin, supplying 125 BCM annually. The main rivers are Napo, Tigre, Pastaza, Santiago, Morona, Cenepa, and Chinchipe.

The National Institute of Natural Resources (Instituto Nacional de Recursos Naturales INRENA) estimates the total amount of groundwater available on the coast to be between 35-40 BCM. There is specific data available only for eight valleys on the coast with 9.0 BCM of groundwater available. Around 1.8 BCM of water are actually extracted on the coast ^(Pavez). No sufficient information is available regarding groundwater availability and withdrawal in the highland and Amazon regions ^(aquastat)

Groundwater withdrawal per sector in Peruvian coast (5)

Sector	Water Withdrawal (million m3)	Water Withdrawal (%)
Urban	367.0	19.9
Agricultural	911.0	49.5
Industrial	553.0	30.1

Source: INRENA

[edit] Storage capacity and infrastructure

In 1980, INRENA established an inventory of Peru's water storage capacity, including lakes and dams. Peru has 12,201 lakes, 3,896 of which are located in the Pacific basin, 7,441 in the Atlantic basin, 841 in the Titicaca basin, and 23 in the closed basin of Huarmicocha. INRENA has inventoried 186 lakes in operation with a total capacity of 3,028.07 million m3 and 342 studied lakes with a total capacity 3,953.04 million m3. Currently the largest number of lakes in operation are located in the Pacific basin, with 105 lakes and a total capacity of 1,378.58 million m3, followed by the Atlantic basin with 76 lakes and a capacity of 1604.73 million m3. The Pacific basin also has the largest number of studied lagoons, with a total of 204 lakes snf a total capacity of 616.62 million m3, followed by the Atlantic basin with 133 lakes and a capacity of 3,006.42 m3.

Peru also has 23 dams with a total capacity of 1,941.88 million m3, and 238 studied dams with a total capacity of 44,028.04 million m3. The Pacific basin has 21 dams in operation with a total capacity of 1,875.88 million m3; the Atlantic basin has 2 dams with a capacity of 66,000 million m3. The Pacific basin also has the largest number of studied dams, a total of 126 with a capacity of 17,200.60 million m3. The Atlantic basin has 105 with an storage capacity of 26,274.83 million m3.

The largest reservoirs are Poechos with a capacity of 1,000.00 m3, Tinajones with 320.00 million m3, San Lorenzo with 258.40 million m3, and El Fraile with 200.00 million m3, all of them in the coastal region ^(INRENA).

[edit] Water quality

The gradual decrease in Peru's water quality is due to the release of untreated effluents from mining, industries, municipalities, and agriculture. Of the 53 rivers in the coastal area, 16 are partly polluted by lead, manganese and iron-mainly due to mining-threatening irrigation and the cost of potable water supplies ^(Olson). In particular, MINAG considers "alarming" the quality of the Moche, Santa, Mantaro, Chillon, Rimac, Tambo, and Chili Rivers ^(Comision). Moreover, the 18 mining facilities situated along the Mantaro River discharge untreated water into the main stream, threatening water supply for the country's largest hydroelectric facility.

Ineffective irrigation has generated salinization and drainage problems in 300,000 hectares of the coastal valleys (of a total irrigated area of 736,000 hectares), jeopardizing these lands' productivity and the quality of Lima's urban water supply. Drainage problems are also affecting 150,000 hectares in the Amazon region ^(Ringler).

In the highland and Amazon areas, excessive deforestation due to nomadic agriculture practices is causing erosion and soil degradation. In the Sierra 55-60% of the land is affected and is increasing the amount of soil transported downstream^(Olson).

[edit] Water resources management by sector

[edit] Drinking water and sanitation

Domestic consumption accounts for 7% of water withdrawals in Peru. The water and sanitation sector in Peru has made significant advances in the last two decades, including the increase in water access from 30% to 62% between 1980 and 2004. Sanitation access in rural areas also increased from 9% to 30% from 1985 to 2004.^[1] Progress has also been achieved in the disinfection of drinking water and in sewage treatment.

Despite these advances, water supply and sanitation services in Peru are characterized by low coverage and poor quality of service, as well as the precarious financial situation of their providers. This, together with the lack of incentives to improve the sector's management, has reduced investment to a minimal level, which is affecting the sector's sustainability ^(Olson) (see Water supply and sanitation in Peru).

[edit] Irrigation and drainage

About 80% of all water withdrawal in Peru is used for irrigation, yet much of this water (65%) is lost due to reliance on inefficient irrigation systems ^(Comision) (see Irrigation in Peru).

Area with Irrigation Infrastructure and irrigated areas (In thousand of hectares)

Region	Infrastructure (a)	%	Irrigated (b)	%	(b/a)
Costa	1,190	68	736	66	61
Sierra	453	26	289	26	63
Selva	109	6	84	8	77
Total	1,752	100	1,109	100

Source: Portal Agrario (1994)

[edit] Hydropower

In 2006, 72% of Peru's total electricity generation (27.4 TWh) came from hydroelectric plants ^(MINEM), with conventional thermal plants only in operation during peak load periods or when hydroelectric output is curtailed by weather events ^[2]. Hydropower accounts for 48% of total installed capacity. Non-consumptive water withdrawal for hydropower generation accounts for 11,138 million m3 per year. The largest hydroelectric facility in the country is the 900 MW Mantaro Complex in southern Peru, which is operated by state-owned Electroperu. The two hydroelectric plants at the complex generate over one-third of Peru’s total electricity supply (see Electricity sector in Peru).

[edit] Aquatic ecosystems

There are 12,201 lakes and lagoons in Peru, 3,896 of which are located in the Pacific basin; 7,441 in the Atlantic basin, 841 in the Titicaca basin, and 23 in the Huarmicocha system. Peru contains approximately 5 million ha of swamps and 4,500 ha of mangroves.

Peru's wetlands play an important role for rural communities. These wetlands are the source for animal protein and for totora, a plant used in the artisan production of boats and floating devices. Estuaries are also fundamental for the reproduction of several marine species that are basic for the fishing industry. Other uses such as industrial production of algae and bird-watching tourism are not yet fully discovered.

In 1996 the Government implemented a National Wetlands Conservation Strategy aimed at increasing the amount of mangroves, moors, estuaries, and lagoons considered to be protected areas. Uncertainties about land ownership, industrial pollution, urban sprawl, and deforestation continue to threaten wetland integrity in Peru. The complete Pucchun Lagoon in Arequipa, 5,000 ha, has been dried out for agricultural purposes. The Villa Swamp, located south of Lima, was reduced from its original 5,000 ha to 300 ha in 1989 due to urban sprawl.

[edit] Legal and institutional framework

[edit] Legal framework

General Water Law 17752 (Ley General de Aguas, 1969) sets out the legal and institutional framework for WRM. It presents significant obstacles to carrying out effective sustainable integrated resources management since it does not recognize the multisectoral nature of water, the river basin as the geographical unit for WRM not that water is an economic good. The LGA establishes the following: (i) the National Government holds sole ownership and managerial responsibility for water resources; (ii) the National Water Authority is the Ministry of Agriculture (Ministerio de Agricultura MINAG); authority is executed by the newly created Autoridad Nacional de Aguas; (iii) the Technical Administrator of the Irrigation Districts (ATDR) is the authority at Irrigation District level and the River Basin Authorities at the River Basin level; and (iv) the Health Ministry is responsible for water quality.

From 1993 to 2003, the Peruvian Government approved a number of sectoral laws regulating water use by different actors, such as the Law Promoting Investments in the Agricultural Sector (DL 653), the Law Promoting Investment in the Fisheries Sector (DL750), the General Hydrocarbon Law (DL 26221), the General Mining Law (DS 014-92-EM), the Law for Electric Concessions (DL 25844). and the General Tourism Law (Law No. 24027).

The 1997 Natural Resources Law 26821 establishes a continuum of the sectoral division of water management. This law also allows the transfer of water rights from one party to another, which is incompatible with the General Water Law, and presents significant obstacles to the establishment of water property rights and water markets ^(Olson).

In the last five years, there has been a profound change in Peru's institutional framework, with the approval of the Decentralization Law, Regional Government Law, and Municipalities Law. In 2003, with the official creation of Regional Governments, the National Government began transferring power to the departments.

A draft National Water Resources Management Initiative will recognize water's multisectoral nature and implement the appropriate institutional and legal framework to carry out integrated water resources management. This legislation is currently under review by the Agrarian Committee in the Peruvian Congress.

[edit] Institutional organization

The institutional framework for water resources management at national level is fragmented. The major agency responsible for water management at national level is the Ministry of Agriculture (MINAG). In 2008, Peru’s Government created a National Water Authority, under MINAG, replacing the Intendancy of Water Resources, previously under INRENA. The National Water Authority (ANA) is responsible for the design and implementation of sustainable water resources policies and irrigation nationally ^(Andina). It should be noted that ANA does not presently have representation at the local level.

Other Ministries have sectoral inputs on water resources management: Agriculture for irrigation, Housing and Sanitation for domestic water use, Health for water quality, Trade and Tourism for hot springs and mineral water, Energy and Mining for hydropower and mining operations, Council of Ministries for environmental policy and energy and water tariff and services regulation, and Defense for hydro-climate information^(Comision).

Regional Governments are responsible for coordinating water use management in each of Peru's departments. However, this poses a challenge for IWRM at the river basin level, since the administrative boundaries of the region do not coincide with those of the river basins. An additional challenge if that the regions are young and lack fundamental technical capacity and human resources to undertake IWRM.

The Irrigation District Technical Administration (Administracion Tecnica de Distrito de Riego-ATDR) is the authority at irrigation district level in charge of managing water for irrigation, granting water rights, and distributing water among various water users. ATDR is also the water conflict resolution body where there is not River Basing Agency (Autoridad Autonoma de Cuenca Hidrografica – AACH)

Finally, other actor involved in WRM at the local level are: (i) four River Basin Agencies (Jequetepeque, Chira-Piura-Chancay-Lambayeque, and Chillon-Rimac-Turin and Santa), (ii) eight local offices of the Environmental Health General Department (Direccion General de Salud Ambiental – DIGESA), and (iii) Water User Boards (WUBs) are responsible for operation and maintenance (O&M) of minor irrigation infrastructure.

[edit] Government strategy

In 2004, the Peruvian Government proposed a National Water Resources Management Strategy^(Comision), which is currently being discussed and is pending approval. The main objectives are:

• Institutional renovation and a clear legal framework to include: (i) a resolution of current disparities between the Water Law and the Natural Resources Law, and transfer of irrigation system operation and maintenance to River Basin Authorities, promoting public participation in decision-making processes; and (ii) institutional development strategies that formalize water and pollution rights and establish a comprehensive tariff system to cover O&M activities.
• Integrated Management of Water Resources addressing both water supply and demand, taking into consideration environmental, social and economic factors. It includes a plan to modernize Peru's existing irrigation infrastructure with the goal of increasing the overall efficiency of irrigation systems from 35% to 45-50%.
• Increased Quality of Water Resources with a conservation initiative for upstream water resources aimed at decreasing sedimentation; it creates a pollution control authority to monitor agricultural and industrial discharges, promotes water recycling, and improves coastal drainage and salinity problems.
• Disaster Management and Mitigation including consistent weather monitoring, reforestation in strategic upstream areas, water channelling, and improved urban planning preventing settlements in high-risk areas.
• Capacity Building and Water Culture, and education program for preschool to college level students about the economic, social, and environmental value of water resources.
• Water Resources Information System strengthening of networks that monitor water quality and quantity; making accurate information publicly available. (See National Water Resources Management Strategy)

[edit] International agreements

The Amazon Cooperation Treaty, signed in 1978 by Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela, aims at promoting sustainable use of natural resources, including water, in the Amazon Basin

On 25th June 2005, after the approval of a US$ 700,000 grant by the Global Environment Fund the Amazon Cooperation Treaty Organization, the General Secretariat of the Organization of American States and the United Nations Development Program agreed to sign the Integrated and Sustainable Management of Transboundary Water Resources in the Amazon River Basin Considering Climate Variability and Change Project. The project aims to strengthen the institutional framework for planning and executing, in a coordinated and coherent manner, activities for the protection and sustainable management of water resources in the Amazon Basin in the face of impacts caused by human action and ongoing climatic changes being experienced in the Basin.

[edit] Water pricing and collection rates

Agricultural and non agricultural surface water use fees are set annually by MINAG. There are no water use fees for groundwater.

Non agricultural water user fees are calculated annually in order to cover certain WRM functions following a methodology that is presently not reflected in the water charges regulation. There are three categories of water fees (minimum, medium, and maximum) depending on the relative water scarcity in each irrigation district. Water tariffs in Peru are somewhat low compared to other Latin American countries. Water bills are often not paid. (See water supply and sanitation in Peru)

In practice, WUBs set their own irrigation water tariff based on agreement with their governing body, and these rates are formely approved by the ATDR. Water is rarely metered and therefore fees are mostly based on hectarage and crop types rather than on volume of water used. Tariffs fluctuate from US$2.2 per ha to US$25.55 per ha, and collection rates vary from 10% in the Amazon and 68% in the Costa region ^[3]. Farmers contribute in cash through payment of the water tariff and in kind, through labor and materials, following ancestral practices. (See Irrigation in Peru)

[edit] Water related risks

The Peruvian piedmont and coastline are prone to devastating floods and mudslides, mainly due to heavy precipitation on degraded upper basins, whereas the southern part of the country is particularly prone to droughts. Aside from natural causes, such as El Niño Southern Oscillation, the effects of droughts and floods have been exacerbated by manmade interventions including soil erosion stemming from poor cropping and grazing practices, deforestation, and poor land use-practices^(Olson).

El Niño hits Peru approximately once every seven years and consists of heavy winds and rainfall associated with devastating floods and landslides. In 1997-1998 the costs of damages reached US$2 billion. Droughts severely affect the southern coast, producing agricultural looses as well as limitations on human water consumption.

Preventive laws and measures (related to zoning, deforestation, and so forth) are not enforced and there is no reliable early warning system network. The consequence is increasing negative impacts from droughts and floods on the different regions, with an increasing impact on Peru's economy^(Olson).

[edit] Potential climate change impacts

The effects of climate change in Peru can be seen in more extreme weather conditions such as droughts and floods, El Niño Southern Oscillation, ^(Comision) and the retreat of Andean glaciers.

A thorough assessment of the net impacts on Peru's water resources is still lacking. Climate change-related impacts in Peru include deterioration of watersheds and depletion of water recharge capacities, increased likelihood of flash fires, and biotic changes in ecosystem thresholds and composition, affecting their ability to store water. The effects and consequences may be different at the initial and final stages of glacier retreat and may differ depending on location (See Impacts of Glacier Retreat in the Andes:Documentary).

High mountain ecosystems, including paramos (unique wetlands of the Northern Andes) and snowcapped terrains are among the environments most sensitive to climate change. These ecosystems have unique endemic flora and provide numerous valuable environmental goods and services. Although understanding of glacier retreat and its consequences has significantly increased, the consequences of climate change could have a negative impact on the functioning of páramos^(Vergara).

Data recently made available suggest that climate impacts have already altered the circulation patterns responsible for producing and moving water vapor to the region. These striking changes have likely contributed to the disappearance of high-altitude water bodies, as well as to the increased occurrence of natural and human-induced mountain fires.

[edit] Ongoing programs and initiatives

The Alan Garcia Administration is currently looking into desalinization as a National Priority to adapting to decreasing water availability. Peru’s Government in planning a US$1,5 billion investment to build two desalinization plants in Lima’s coast to supply water to 1,5 million people^{(Europapress)}.

In 1997, the World Bank contributed US$85 million, out of a total of US$172.4 million, to a Subsectoral Irrigation Project (Programa Subsectorial de Irrigacion).

The National Water Resources Management Modernization Project (US$10 million) aims to strengthen the institutional capacity for integrated water resources management at the national level and in three river basins (Chancay-Lambayeque, Ica and Chili) ^(Andina). The Agricultural Research and Extension APL Phase 2 (US$69 million) aims to adopt sustainable agricultural practices in glacier-dependent watersheds.

In June 2007, the GEF Council approved the Regional Adaptation to the Impacts of Rapid Glacier Retreat in the Tropical Andes (Bolivia, Ecuador and Peru) Project. This project aims to implement adaptation measures to meet the anticipated consequences of the catastrophic glacier retreat induced by climate change.

In June 2007, the Inter-American Development Bank (IDB) approved US$200 million for a Water Resources Reform Program (WRRP) that would include hydraulic structures, and institutional and legal reforms. In August 2007, the IDB approved an additional US$5 million to support capacity building efforts contained in the WRRP. The IDB is also implementing a water resources management plan for Peru's Maschón and Chonta watersheds. The objective of this US$1.2 million grant is to define the appropriate measures for improving integrated water resources management.

[edit] Cited references

[edit] Notes

[edit] See also

• Peru
• Electricity sector in Peru
• Irrigation in Peru
• Impacts of Glacier Retreat in the Andes:Documentary

[edit] External links

• Portal Agrario
• Instituto Nacional de Estadistica e Informatica del Perú