COLOMBIA: MANAGING WATER

CONFLICTS IN AN EMERGING ECONOMY

Claudia Martinez Zuleta

OECD Water Forum

October 2011

Colombia in South America

Oldest democracy

2nd Population: 45 million

4th Economy: GDP: US$288billion

(2010) World Bank

3rd Recipient of FDI:

US$6.8 billion (2010)

in oil & gas: US$2.9 billion (2010)*

4th Land surface area: 1.2 million

km2 - 50% Ocean (0.9 million km2)

One of the most biodiverse countries

First place in birds and

anphibians

3500

orquíds:

15% world

total

80 native ethnic groups

642 indigenous territories

equivalent to 27% of the

total national territory

Very rich in terms of Water

Resources and global

environmental services

Eolic, solar and

geothermal potencial

Endemic flowers,

fruits, species

COLOMBIA: a great potencial

GLOBAL WATER BALANCE

21 l/s Km10 l/s Km 258 l/s Km

RAINFALL

900 mm / año

RUNOFF47.000 Km3/year

EVAPORATION580 mm / year

3.000 mm / año

RUNOFF2.112 Km3/year

EVAPORATION1.150 mm / year

1.600 mm / año

RUNOFF11.668 Km 3/year

EVAPORATION940 mm / year

WORLD COLOMBIASOUTH AMERICA

Fuente: Balance Hídrico Mundial y recursos hídricos de la tierra

Instituto de Hidrología UNESCO.

SCARSITY

TEMPORAL

SPACE

RAINFALL RAINFALL

2

2

Amazon

Orinoco

Magdalena-

Cauca

Pacific

Caribbean

Colombia has 5 major water basins

Colombia has a lot of water but with

increasing scarcity in dry years

and water runoff in wet years is one of

the major causes of natural disasters

LAND SURFACE

9 %

35 %

56 %

POPULATION

1 %

66 %

33 %

WATER SUPPLY

msnm

3.000

1.000

Fuente: Lineamientos de política para el manejo integral del agua - Min. Ambiente - 1997

DISTRIBUTION OF THE POPULATION

AFFECTS WATER SUPPLIES AND QUALITY

4%

34%

62%62%

So most of the water is used in the

mountains or andean region

WATER DEMAND BY SECTOR

54%4%

4%

7%

2%

7%6%

Agriculture

Industrial

energy

domestic

services

acuaculture

livestock

However most of the water is used

by the agricultural sector

Land use is changing….even though 40% of

the territory has a “legal” form of protection

National parks (10%) and forest

reserves in addition to indigenous

territories (25%) and collective lands

(Choco) protect more than 40% of

the country

Change in Forest Cover

2000-2007

Deforested

Forest Cover

Non forest areas

With increasing rates of

deforestation: 300.000 hec / year

However in a growing economy there

are water conflicts

MAJOR DRIVERS OF

THE ECONOMY:

MINING

HYDROCARBONS

ELECTRIC SECTOR

AGRICULTURE

INFRASTRUCTURE

Río Dagua (Valle)

Mining vs Water conflict

Fuentes de información:

• Parques: UAESPNN

• Reservas forestales: MAVDT

• Páramos: Instituto Humboldt

• Ramsar: MAVDT

• Títulos: Ingeominas (oct/08)

Protected Areas and mining titles

Mining titles are overlapping

water sources

Protected Areas, titles and

request titles

8934 Titles

16233 requests for titles

Ingeominas

with increasing conflicts

Colombia has a very unique ecosystem:

the Paramos.

No of Páramos: 34

Total Area: 1’933,039 Ha

equivalent to 1.7% of the national

territory

70% of the water consumed by

Colombians is produced in

Paramos

No of Páramos: 34

Total Area: 1’933,039 Ha equivalent to 1.7% of the national territory

70% of the water consumed by Colombians is produced in Paramos

Area in mining titles: 106,118 Ha que equivale al 5.5% del área total de

Páramos. 295,406 Ha equivalent to 15.3% of the paramos areas being

requested.

But they are threaten by mining projects

CONVENCIONES

MAPA DE ZONAS

PROTEGIDAS,

TÍTULOS Y

SOLICITUDES

MINERAS BOYACÁ

For example in Boyaca, overlapping

with the Paramos

Gama

Cota

Chía

Sopó

Funza

Junín

Ubalá

Tenjo

Tabio

Manta

Cogua

Tausa

Pacho

Paime

Ubaque

Soacha

Guasca

Cajicá

Supatá

Suesca

Choachí

Fomeque

Gachala

Gachetá

Guayatá

MachetaNemocón

Fúquene

Mosquera

SesquiléTibirita

Chocontá

Cucunubá

Guachetá

La Calera

Guatavita

Tocancipá

Zipaquirá

Sutatausa

Gachancipá

Subachoque

Villagómez

San Juanito

Villapinzón

Lenguazaque

Bogotá, D.C.

San Cayetano

Ventaquemada

Carmen de Carupa

Villa de San Diego de Ubate

CUNDINAMARCA

BOYACÁ

BOGOTÁ Distrito Capital.

META

Boyacá

Cauca

C/marca

Tolima

Santander

N. de SantanderQuindíoAntioquiaNariño

50 60

62

112

122

175

299

-

50

100

150

200

250

300

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Mile

s d

e h

ectá

reas

Colombia. Evolución de áreas con título minero en páramos1990-2009(*)

(*) A mayo de 2009 Fuente: Rudas (2010) a partir de Ingeominas, Títulos mineros (base de datos a Mayo 7, 2009)

Mining titles in

Paramos

Solicited areas

Titled areas

Bogota -Cundinamarca

Paramo areas

And around Bogota there are

increasing mining titles

ENERGY-ELECTRIC SECTOR Vs WATER CONFLICTS

18 de octubre de 2011 2

The dependency of Colombia on hydropower makes the system vulnerable to

water changes. Colombia relies also in its firm capacity (thermo power and othersources) at higher prices.

77%

23%

Generation in

normal

conditions

66%

34%

Installed

capacity

52% 48%

Generation in

dry periods

Thermal

Hydro

The Nino and nina phenomenoms affect

Colombia hydropower capacity

Source: MME-CREG-XM

The electric sector is mostly hydro

02 de mayo de 2009 3

Se deben generar los incentivos necesarios para que haya suficiente energía firme

que garantice la adecuada atención de la demanda.

Nivel de los

embalses en kWh

La cantidad de

energía en el

sistema puede

bajar durante

períodos de

escasez

52% 48%

77%

23%

with a system that assures trustful

“firm” energy

Lowest price per KW

Very efficient economic

system without

environmental pricing

Ending in several new

dams with environmental

conflicts

There is an urgent need

to manage water quality

and quality in each basin

Cargo por confiabilidad

Fuente: XM

25 Capacidad

Efectiva :

1200 MW

Tecnología : Hidráulica

ENFICC : 8563 GWh/año

Capacidad

Efectiva :

396 MW

Tecnología : Hidráulica

ENFICC : 1750 GWh/año

Capacidad

Efectiva :

800 MW

Tecnología : Hidráulica

ENFICC : 3791 GWh/año

Capacidad

Efectiva :

60 MW

Tecnología : Hidráulica

ENFICC : 50 GWh/año

Capacidad

Efectiva :

400 MW

Tecnología : Hidráulica

ENFICC : 1923 GWh/año

Capacidad

Efectiva :

135.2 MW

Tecnología : Hidráulica

ENFICC : 184 GWh/año

Capacidad

Efectiva

TOTAL :

2991.2 MW

Tecnología

: Hidráulica

ENFICC

Verificada

TOTAL :

16261 GWh/año

ENFICC

Asignada

TOTAL :

6281 GWh/año

Agriculture and livestock vs water

Agriculture is the main user of water resources.

More than 40 million hectares are used for

extensive cattle ranging; a main driver of

deforestation and water deterioration

User fees (tasas uso)

Contamination Fees (tasas retributivas)

SUPPLY

DEMAND

SUPPLY

Planning vs land use

Institutional strengthening.

Coordination

Culture of payment for

ecosystem services (PES)

MANAGING WASTE WATER

National Plan to manage

waste water facilities

MANAGING WATER SOURCES

MANAGING SECTORIAL USES

Program for the rational use of

WATER

Colombian environmental laws

include economic Instruments

WATER

However, the agricultural sector is not

willing to pay high prices for water

Payment for ecosistem services to the Regional

Environmental Corporations 1995-2008

Water Use Tariff =Minimum Tariff *Regional Factor

RF= Water scarcity index+investment costs+Index insatisfied basic

needs

$0.67/ per Cubic meter (in 2004)

Less than 0.1% of the total production cost

Recent studies show that the price should be above $15 pesos

Rice Sugar Cane Oil Palm

The current water tariff for the

agriculture sector is insignificant

Socioeconomic

capacity of the

population in

the different

municipalities

With water scarcity due to rainfall

reduction poor peasants are vulnerable

Fuente de información: IDEAM (2010)

Shortages and floods in different

areas and times.

El Niño and la Niña effects : 2010-

2001 the whorst floodings in history

Climate Change vulnerability

80% of endemic sickneses have an

origin in the lack of clean water and

sanitary conditions.

The Magdalena River is one of the

principal sources of contamination of

the Caribbean sea.

Colombia has major water risks

due to natural disasters

How is the country addressing

these challenges?

The first Code of Natural Resources in the world

(1972)

Green Constitution (1991)

Strong environmental law (Ley 99 of 1993)

Decentralized institutional structure

Ministry of Environment and Sustainable

Development in charge of water supply

Ministry of Housing and Water in charge of water

demand.

Governmental Water Plans

A Regulatory Water Commission

New Integral Water Policy

Water information system

Watershed zoning and Management Plans

Water sectorial payments, municipal transfers

and economic instruments

Fiduciary system

•Everybody puts resources

•Institutional coordination

100%

Financial

sources Specialized

operators

transparency

Municipios

Nación

Usuarios

Departamento

Corporaciones

Banca Multilateral

Components Economies of scale

priorities

Ejecución POI

Fortalec. Institucional

Subsidios

Gerencia

Gestión Ambiental

Pago Deuda

Management board

Departmental Water Plans Financial

System

Increasing access to potable water in

many municipalities in the country

Ministry of Environment and Sustainable Development: Head of the systems;

formulates policies and regulations;

32 DEPARTAMENTS

Promote and implement

environmental policies and

regulations at departmente and

regional level

6 Urban environmental authorities

Promote and implement policies and regulations in urban center bigger than 1 million people

5 Research Institutes

Produce and monitor scientific,

technological and environmental

information for SINA.

33 Environmental Regional Corporations

• Implement policies

• Environmental authorities

• Regional coordination

SINA

CONTROL AUTHORITIES

Contraloría, Procuraduría

PRIVATE SECTOR AND

CIVIL SOCIETY

1120 MUNICIPALITIES

Promote and implement policies and

regulations at local level

ROLES OF SINA

55 National Natural Parks

Administer protected areas

Colombia has a unique National

Environmental System

DEMAND

SUPPLY

QUALITY RISK

MANAGE-MENT

INSTITUTIONAL

STRENGTHEN

Water is a public resource,

and is the responsability of

everybody

Human Consumtion is the

main priority

Strategic resource for the

development of the country

Assure regional diversity and

integral management

Water management

structured by each river basin.

Efficient use and

conservation (saving) of the

resource

Equity and local participation.

and an Integral Water Resource Policy

- 2009

that has derived in Innovative Water

Funds and PES schemes

Bogota Area: Water

for more than 8

million inhabitants

Valle del Cauca Area:

domestic and

agricultural uses

Water Fund for Bogota

Private and Public

sector partnership

More than 8

million people

National system of

Protected Areas

Two main

Paramos:Chingaza

and Sumapaz

Education - a public campaign importance and efficient

use

Protection - Protect Paramos

Conservation - Sustainable management with peasants

Reducing the costs of water treatment

Management and Sustainable use of ecosystems

Accountability and Transparency

«Agua Somos», will guarantee the water production and conservation of biological diversity of Paramos, one of the

most important ecosystems in the country.

Agua Para la Vida

Water for Life started with the help of

the sugar cane producers

Water for Life and Sustainability Gestión de Aportes

Organización Valor aportes $ Periodo

INGENIOS AZUCAREROS 3.600.000.000,00 2009-2012

THE NATURE CONSERVANCY TNC 500.000.000,00 2009-2010

ECOPETROL 99.970.530,00 2009-2010

ECOPETROL 100.000.000,00 2010-2011

ECOPETROL 100.000.000,00 2011-2012

ECOPETROL 30.000.000,00 2011 - 2012

PAVCO 100.000.000,00 2011- 2012

UNICEF 90.000.000,00 2011- 2012

GEF - FEDEGAN - GANADERÍA

SOSTENIBLE (Recursos BID)

2.450.000.000,00 2010-2015

USAID 547.000.000,00 2010-2013

CVC 1.000.000.000,00 2011-2012

TOTAL $ 8.616.970.530,00

The main funders are several

entities

With 11 rural water associations in charge of projects

Water Fund for life and sustainability

12 projects cofinanced by association of users 1500 families beneficiaries of the project 1.200.000 people drink water

Total amount of the

Fund in 2 years

Col$2.807.664.560

US$1.488.000

In the last 2 years it has proven

success in terms of funding

Conclusion

•Colombia understands that one of the main drivers of

competitiveness is its water resources.

•Institutionaly, water supply and water demand will again be

managed in different ministries, assuring “checks and balances”.

•Managing watersheds in an integral manner is starting to happen

at the regional level, in order to solve water conflicts.

•Pricing water effectively will help assuring sectoral equity and

sustainable use.

•We would like to bring to the country only “Green Investments”

that are willing to manage water resources effectively.

•The New Ministry of Environment and Sustainable Development

will have the power to establish more payment for ecosystem

services schemes and to assure economic instruments. The

Ministry of Housing and water will effectively continue with its

water municipal plans.

Thanks

WWW.E3asesorias.com