Policy Elements for Sustainable Development in the XXI Century

Argentina Water Resources Management

VOLUME I

Main Report

February 18, 2000

Latin America and the Caribbean Regional Argentina Country Department and Finance, Private Sector and Infrastructure, and Environment and Socially Sustainable Development

ii ACRONYMS: AyEE Agua and Energía Eléctrica (Water and Power) AGOSBA Administration of Sanitary Works of Buenos Aires BID Interamerican Development Bank BIRF International Bank for Reconstruction and Development CAS Estrategia de Asistencia el País (Country Assistance Strategy) CBA Análisis de Costos-Beneficios (Cost-Benefit Analysis) CEA Análisis de la Efectividad de Costos (Cost Effectiveness Analysis) CELA Centro de Economía, Legislación y Administración del Agua (Center for Water Economy, Legislation and Administration) COIRCO Comité Interjurisdiccional del Río Colorado (Inter-Jurisdictional Committee for the Colorado River) COFEMA Consejo Federal del Medio Ambiente (Federal Environmental Council) COREBE Comisión Regional del Río Bermejo (Regional Commission of the Bermejo River) CMU Country Management Unit CNA Comisión Nacional del Agua (National Water Commission) CRA Centro Regional Andino (Andean Regional Center) CRAS Centro Regional de Aguas Subterráneas (Regional Groundwater Center) CUA Análisis de la Utilidad (o Factibilidad) de Costos (Cost Utility [or Feasibility] Analysis) DGI Departamento General de Irrigación de Mendoza (General Irrigation Department of Mendoza) DNRH Dirección Nacional de Recursos Hídricos (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 Hídricas de Saneamiento (National Sanitation Works Agency) ESW Estudios Económicos Sectoriales (Economic Sector Work) INA Instituto Nacional del Agua and el Ambiente (National Institute of Water and Environment) INDEC Instituto Nacional de Estadística and Censos (National Institute of Statistics and Census) LAN Ley de Aguas Nacionales (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) PIB/PGB Producto Interno Bruto/Producto Geográfico Bruto (Gross Domestic Product/Gross Geographic Product) PNUD Programa de las Naciones Unidas para el Desarrollo (United Nations Development Program) PRODIA Programa de Desarrollo Institucional Ambiental (Institutional Environmental Development Program) PROSAP Programa de Servicios Agrícolas Provinciales (Provincial Agricultural Services Program) RMBA Región Metropolitana de Buenos Aires (Buenos Aires Metropolitan Region) SAGPyA Secretaría de Agricultura, Pecuaria, Pesca y Alimentación (Secretariat of Agriculture, Livestock, Fisheries and Nutrition) SDSyPA Secretaría de Desarrollo Sustentable y Política Ambiental (Secretariat of Sustainable Development and Environmental Policy) SOP Secretaría de Obras Públicas (Secretariat of Public Works) SPIDES Sistema Provincial de Informaciones de Empresas de Saneamiento (Provincial System of Information on Sanitation Companies) SRNyDS Secretaría de Recursos Naturales y Desarrollo Sustentable (Secretariat of Natural Resources and Sustainable Development) SSRH Subecretaría de Recursos Hídricos (Under-Secretariat of Water Resources) WRM Water Resources Management (Gestión de los Recursos Hídricos – GRH)

Note: Under Decree 20/99, dated December 13, 1999, a new organic structure and functions are 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 Secre- tariat of Sustainable Development and Environmental Policy, subordinate to the Ministry of Social Development and En- vironment.

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 Mejía Task Team Leader: José Simas

Team Members Bank Staff: Hynd Bouhia María Angélica Sotomayor Musa Asad Adrien Campbell Graciela Lituma

International Consultants: Nguyen Quang Trac Regina Martínez Hector Garduño Francisco José Lobato

Local Consultants: Cesar Magnani Guillermo Wood Juan Carlos Miller Juan Carlos Gimenez Miguel Auge

External Reviews: Jerson Kelman Miguel Solanes Claudio Laboranti Cora Bonet Carlos Salgueiro

Peer Reviewers: Fernando González Thomas R. Wiens John Briscoe Asif Faiz

Editing: Tables and Graphs Phillip N. Assis and George Tobar Translations: Spanish/English Janice Molina

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 with the objective of identifying the main problems regarding water resources management and proposing policy options to promote the sustainable develoment of water resources in Argentina. The study was prepared by a team of experts under the direction José 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 María Under-Secretariat of Environment, Ministry of Environment and Public Works. Province of Mendoza. Acuña Dr. Augusto Secretary of Environment. Province of Catamarca Arrillaga Lic. Hugo Professor. Faculty of Economic Sciences. UN Litoral Bernardi Ing. Alejandro Bureau of Water and Sanitation, Aguas Argentinas. Province of Buenos Aires. Bernasconi Ing. Inés 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 Córdoba Bucich Lic. Noberto G. Acting Director, National Institute of Water and the Environment (INA), San Juan Headquarters. Province of San Juan. Cassavella Ing. Quím. Ana María Industrial Waste Control, DAS Cebollada and Geol. Madel Pilar Hydrogeologist, DAS Verdaguer Chambouleyron Ing. Jorge Luis INA. Province of Mendoza. Clérico Ing. Miguel A. Director of Environmental Programming and Action - Province of Córdoba Collazo Lic. Juan Manuel Executive Director. Matanza Riachuelo Watershed Committee Córdoba Sr. Osvaldo General Coordinator, Argentina Mining Sector Project - PASMA 6 Secretariat of Industry, Commerce and Mining – World Bank. Buenos Aires. Coria Jofré Ing. Civil and Hidráulico. Daniel External Consultant. Province of San Juan Oscar Crespillo Ing.. Raúl 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. María Esther Coordinator, Institutional and Regulatory Unit. National Water and Sanitation Works Agency. SERNyDS Fernández Dra. Corina Coordinator, Water Policy Program. Secretariat of Water Resources, SERNyDS

v Surname First Nameand Title Affiliation Fioriti Lic. María Josefa Coordinator, Water Information Program. Secretariat of Water Resources, SERNyDS Fratti Ing. Ricardo Director of Hydraulics. Province of Santa Fé. Gianoni Ing. Luis Consultant, Regional Planning and Water Resources - Province of Córdoba Gianoni Lic. Marta Elena Mercado Specialist in Environmental Law - Province of Córdoba González del Agdo. Nicolás External Consultant. Province of Mendoza. Solar Hernández Agdo. Víctor Guillermo External Consultant. Province of Mendoza. Huerga Ing. Miguel A. Secretariat of Agriculture, Livestock and Fisheries. PROSAP Jofré 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. César 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. José Antonio Officer, Irrigation and Drainage Program, National Institute of Water and the Environment (INA), Andean Regional Center, Mendoza. Morín Ing. Juan Minister of Public Works, Province of Santa Fé Pardiñas Ing. Agr. María Inés Director of Environmental Coordination and Control - Under-Secretariat of the Environment – Municipality of de Córdoba 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. José Luís Presidente, Provincial Water and Sanitation Agency. Province of Mendoza. Rais Dr. Jorge President, ENOHSA Riveros Ing. Joaquín 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 Córdoba Saldurea Ing. Luis Provincial Counterpart, PRODIA - Province of Córdoba Vachino Ing. Adelmar Under-Secretary of Water Resources: State Secretariat of Natural Resources and Sustainable Development. Vargas Lic. Ramón Advisor, Provincial Water Administration. Province of Chaco

vi INDEX OF VOLUME I

Summary xiii

Main Challenges and Opportunities Water Policy Framework An Agenda for Modernization

1. OBJECTIVE OF THE STUDY 1

Objective, scope and description of Report Challenges and opportunities

2. FRAME OF REFERENCE 5

Population Institutions Legal framework Limitations and opportunities

3. WATER RESOURCES AND REGIONALIZATION 8

Strong climate contrast Abundance and spatial imbalance of surface resources An environmental and public health problem: aquifer pollution Regionalized view of water problems

4. USES AND MANAGEMENT 13

Drinking water and sewerage From fragmented management to integrated, modern and efficient management Water quality and pollution Floods Tariff scheme Externalities and environmental costs

5. TOWARD A NEW WATER POLICY 20

The challenge

A constructive view Objectives of a new policy A regionalized, realistic and flexible strategy Regional strategy

vii 6. WATER POLICY AND ACTION AGENDA 24

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

ANNEXES: Annex 1: Provincial Grouping by Regionalization of Water Resources Annex 2: International Experience that may be useful to Argentina Annex 3: Current Status of Irrigation in Argentina Annex 4: Main Issues Covered by Provincial Legislation Annex 5: Regionalization of Key Issues, Gaps and Policy Options Annex 6A: Proposed Action Program Annex 6B: Proposed Action Program

LIST OF BOXES 1. Challenges of the Millenium and Forces Driving Global 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 Región 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 PGB Per Capita

MAPS: Agroclimatic Regions Watersheds Grouping of Provinces by Regions for Regionalization of Water Resources

viii REFERENCES CONSULTED (List)

ix INDEX OF VOLUME II (INTEGRATION REPORT)

INTRODUCTION AND OBJECTIVES 9 1.1. Introduction 1.2. Objectives

2. WATER RESOURCES IN ARGENTINA 11 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, information 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

x 3.3.4. Other water uses 3.3.5. Economic/financial deficits and options 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 52 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 Húmeda 4.3.5. Ríos Colorado and Negro Region 4.3.6. Southern Patagonia 4.4. Main Issues of National Interest 4.4.1. Economic value of water 4.4.1.1. Pragmatic adjustment of legal and institutional framework and security of water rights 4.4.2. Comprehensive management of water resources 4.4.3. Development of institutional and analytical capacity 4.4.4. Communication and participation 4.4.5. Management of water resources information system 4.5. Political “Momentum”

5. TOWARD A NEW WATER POLICY 72

A constructive view Policy options

A realistic, flexible and regionalized strategy A national consensus for the XXI century

6. WATER POLICY AND ACTION AGENDA 76

National consensus for the XXI century Agenda and priorities Next stages

xi 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 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

xii INDEX OF VOLUME III (THEMATIC ANNEXES)

ANNEX A: Legal, Regulatory and Institutional Framework of Water Resources Regina Martinez and Cesar Magnani

ANNEX B: Economic and Financial Aspects Juan Carlos Giménez and Musa Asad

ANNEX C: Groundwater N.Q. Trac

ANNEX D: Irrigation in Argentina Juan Carlos Miller, Guillermo Wood and José Simas

ANNEX E: Water Quality Problems in the Provinces of Córdoba, Tucumán, Catamarca and Mendoza Francisco José Lobato

ANNEX F: Water And Sanitation Sector In Argentina. Review And Strategy María Angélica Sotomayor

ANNEX G: Lessons from International Experience Hector Garduño, José Simas and Musa Asad

ANNEX H. Concept Document José Simas

ANNEX I. Draft for Water Resources Master Plan Victor Pochat, Cora Bonet and Claudio Laboranti

xiii Summary

Main challenges and opportunities

1. With a per capita income of over US$8,800 and a reasonable economic situation, Argentina regained its place at the forefront of Latin American countries. However, water resources management remains 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, and merits considerable attention from national and provincial sector authorities as well as from society as a whole which should assume, responsibly and without delay, the cost of efficient 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 to the rural population in some areas, is reaching dangerous levels due to its accumulative effect on health, as demonstrated by recent scientific evidence. 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 recent problems in urban and rural drainage that have significant economic and social impacts. Irrigation systems, a key element for the growth of agricultural production, agroindustries and seasonal exports, have low levels of physical efficiency and serious soil management problems, with half a 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 sanitation 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 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 insignificant. A symptom of this overall inefficiency is shown by 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 table 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. It may be commented, as a justification, that under current macroeconomic circumstances it is necessary to defer control investments and continue transferring these costs to third parties and future generations. However, given the deterioration in many situations, the issue can no longer be postponed due to the cumulative and accelerated effects and the growing difficulties in resolving them.

5. The current legal and institutional structure does not favor rational, coherent management of the country’s water resources. Although the 1994 constitutional reform grants the National Congress authority to establish regulations and principles regarding “Minimum Prerequisites for Environmental Protection” (Presupuestos Mínimos para la Protección Ambiental), no framework water law of a national scope has yet been enacted to regulate the country’s waters and balance provincial and regional legislation, while respecting “provincial public ownership” of waters in their territories. There is national jurisdiction over navigation, issues of international rivers and inter-jurisdictional commerce. The dominant feature at xiv institutional level is the fragmented management of water resources and their sectoral handling by numerous national and provincial institutions, with very different interests and focuses, which is the source of interprovincial conflicts. With recent reforms and the concession/privatization 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.

6. Although the sector’s overall panorama appears discouraging at a glance, the country has exceptional 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.

7. Few places in the world have achieved a level of joint 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, several regions, especially in the Pampa, have begun to benefit from modern irrigation technologies.

8. 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 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.

Water policy framework

9. 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.

10. 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, such as: incentive framework for efficient water use, the setting of a tariff level that ensures sustainable and efficient use, and market competition mechanisms. Moreover, the study suggests that a modern 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 achieved at these two important international conferences provide the elements of principle 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 highest 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

xv 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.

11. It should be noted that many elements of modern 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, joint use of groundwater is based on sound principles, including charges for use, but it lacks environmental elements to protect against contamination and actions to improve recharges. On the contrary, 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 political economics which are always present in water consumption, due to their social characteristics and their political impact.

12. The study identified the main water policy gaps that conspire against the modernization of water management in Argentina, which ideally should be handled under the “Minimum Prerequisites for Environmental Protection” framework law required by the 1994 constitutional amendment. To facilitate presentation, these public policy elements may be grouped into four large areas: (i) policies that promote the 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 conflict resolution between administrative jurisdictions and users; and (iv) policies to deal with social equity problems, that guarantee the needy population access to drinking water and sanitation services, and other “public goods” such as urban and rural drainage and mitigation of the effects of floods.

13. To optimize efficiency in the beneficial 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 (principle of inherent rights [principio de inherencia]) and especially where water is scarce and its opportunity cost is high, the price of water (right and use) 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, ensuring minimum ecological volumes, extractions compatible with recharges, and favoring human supply at rational levels. The legal quality 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 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 establishment of a value for water rights and the registration of sources and contamination loads, with the 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 proposed, compatible with willingness 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.

14. In addition to these policy elements that would ideally be part of the proposed law of “Minimum Prerequisites for Environmental Protection” and its respective regulation, a practical institutional model should be proposed in the provinces, based on: (i) promotion of associations/organizations of users of irrigation systems and aquifers, granting them greater responsibilities in: management, administration, operation and maintenance of distribution systems. Thus, whenever possible the surface under irrigation by each association would be no smaller than 18,000 ha, to make use of economies of scale. At the same time,

xvi 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); (ii) strengthening of provincial water administrations in their role as economic regulators, responsible for the prospective vision of water resources and the system of generating and analyzing hydrometric and climatological data; (iii) supporting of provincial environmental institutions in their capacity as authorities implementing water quality regulations; (iv) 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 aquifer conflicts; (v) promotion and institutionalizion of the preparation and periodic updating of the water resources management master plan, either by strengthening the current Under-Secretariat of Water Resources or by creating a national water bureau or agency with regulatory and policy functions and with majority participation by the province. The federal government’s role would be as mediator of inter-jurisdictional conflicts over quality and quantity, incentives for improvements, regulatory and overall policy, minimum standards, information and formation of provincial capacity.

15. To get this set of reforms under way, a major national consensus on the country’s water policy would be needed, along with strong support by the federal government, and contributions from users and water 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. It should be noted that a 500 ml bottle of water costs half a peso, equivalent to 2,500 pesos per cubic meter. 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. At least 80% of resources generated should be administered in the provinces by basin and aquifer organizations, as the case may be. The remaining 20% 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.

16. In addition to the transitional and political economy elements of water discussed above, it should be acknowledged that the proposed task, despite the consensus already reached, involves enormous practical difficulties. Thus, a system should be proposed which is both flexible and adjustable over time, in which lessons learned may be incorporated as reforms materialize. For example, in arid zones with problems of shortage, headwaters provinces may be opposed to the reform if they maintain an essentially provincial vision and interests based on the ownership of natural resources as granted by the national constitution. It is therefore essential to regulate the constitutional precept of “minimum brerequisites,” which would provide the basis 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 lessons of experience 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

17. Numerous limitations, especially in legal and institutional aspects, 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 is 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.

xvii 18. 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

19. Regulatory framework. The national Ministry of Infrastructure and Housing (MIyV), through its Subsecretariat of Water Resources (SSRH), must exercise its leadership and invite provinces and civil society to discuss the structure, minimum proposed standards, basic principles and essential issues of the proposed “framework” law of Minimum Prerequisites for Environmental Protection, which entail a major national consensus to accelerate its approval and regulation. The project corresponding to water would establish a modern 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. Once the Law is approved at national level, the process of adjusting and modifying provincial legal schemes may begin, so that they can offer greater consistency, uniformity and flexibility in water rights management.

20. 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 responsibilities 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 civil society in general. 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.

 Simultaneously and in the short term.

21. Water Resources Management Master Plan. In order to achieve rational use and preservation of water resources in the Republic of Argentina, 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 long-term planning and programming tool to prospect future issues, visualize long-term goals, allocate budgets and control management. The Master Plan, carried out jointly with provinces 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 will include an assessment of impact on quality; identification of conflicts; economic value; water supply, and availability, and will require a 20-year planning period, to be articulated through a planning model that will allow an identification and prioritization of actions to be carried out.

22. 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 water supply sources, 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.

23. 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, Córdoba, 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

xviii 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. In Mendoza there is also surface and ground water 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, 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 for improving the management of their waters.

24. Reclamation of lands with drainage and/or salinization problems. The recovery program for these lands (half 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 already been recovered since 1997 at an average cost of US$730 per hectare. This experience, in its financial, technological and programming aspects, should be of great interest to Argentina.

25. 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 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 on water rights and uses. The systems will include advanced technologies for the integrated management of resources, particularly those for aquifer simulation, aimed at their protection. The provincial implementation program will assign priority to provinces with the most acute environmental problems (Mendoza, San Juan, Catamarca, Tucumán, Córdoba 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 in a very short period of time.

 In the medium term

26. 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 a 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 issues of water management, and the education of the various sectors of users about saving and conserving water resources.

27. 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.

28. Rural and urban drainage. Mitigation of the devastating effects of recurrent floods in rural areas will 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 endorreic basins; 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

xix will 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, and an improvement of financial mechanisms and institutional strengthening.

29. 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, the private sector and stakeholders. This would be the chance to revitalize Basin Committees and to achieve consensus on policy instruments to combat water pollution: implementation of 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 Brazil and France could be particularly useful.

30. Improvement of the analytical base. An important support to the implementation of proposed actions will 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; (v) prospective planning studies in selected basins, which tentatively could be the basins of the Salí-Dulce, Desaguadero, Colorado, and Bermejo rivers, and those of Córdoba; and (vi) preparation of realistic health and environmental regulations for drinking water and for the dumping of waste water.

xx 1. OBJECTIVE OF THE STUDY study focused, five main issues or problems were selected: (i) legal and regulatory; (ii) economic Water resources in Argentina constitute a and financial; (iii) groundwater; (iv) water significant support to economic development, quality and pollution; and (v) irrigation. The but they are in a critical situation, due to first two issues (legal/regulatory and inefficient management, with legal, institutional, economic/financial) are intersectoral, while the economic, technological and environmental latter three are more specific to subsectors that limitations. require immediate attention. The Bank’s comparative advantage in terms of its regional The aim of this study is to analyze these and global experience in this subject was also limitations and identify policy options to taken into account, incorporating international promote the sustainable development of water best practices in the subject of water resources resources in the Republic 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 2 Secretariat of Water Resources dealt with the Annex, which groups the eight thematic studies work of the National Bureau of Water Policy. that formed the basis for identifying key Irrigation issues were handled by the Secretariat problems in the country’s water resources of Agriculture, Livestock, Fisheries and management, in order to propose policy options. Nutrition (SAGPyA). At provincial level, provincial ministries and agencies were Since the study’s main audience is in Argentina, responsible for water administration.1 the report was originally written in Spanish. Volumes I and III will also be translated and published in English. The study is aimed at two audiences: first, the government – the authorities who make decisions and federal and provincial legislators. Chapter 2 of this volume presents the Reference The secondary audience is comprised of World Framework for the socioeconomic, legal and Bank staff and administrators who deal with institutional aspects of water resources operations and policies in Argentina’s water management in Argentina, indicating the sector. adjustments needed for more rational, coherent organization. The study’s general objective is to summarize Chapter 3 presents a brief analysis of the General current knowledge of sectoral issues and propose Regionalization of the principal water resources policy adjustment options which are the key to issues and problems, with their main problems of improving water resources management in distribution in terms of space and time, with Argentina at federal and provincial level. special emphasis on water pollution. In addition, it is hoped that the study will offer a Chapter 4 on Uses and Management points out positive, timely contribution to the water sector the most important aspects in relation to the for the preparation of the next country assistance rationalization and modernization of uses, as strategy. well as the protection of resources. The scope of this work was defined based upon the workshop held in Buenos Aires in February Chapter 5 analyzes the challenges inherent in 1999, with the participation of federal and opportunities to make adjustments in sectoral provincial governments. At this time, numerous policy. problems that limit the efficient use of water resources were identified. However, to keep the 2 A. Legal, Regulatory and Institutional Framework of Water resources; B. Economic and Financial; C. Groundwater; D. 1 Without meaning to omit others, we wish to highlight the Irrigation in Argentina; E. Water Quality Problems in the participation and assistance of sectoral experts and staff in Province of Córdoba; F. Drinking Water and Sanitation the Provinces of Mendoza, Córdoba, Chaco, Buenos Aires, Sector in Argentina. Review and Strategy; G..Lessons from Catamarca, San Juan, Santa Fe, Tucumán, Río Negro, International Experiences; H. Concept Document. Neuquén, Salta, La Rioja, Misiones, and Entre Ríos. 1 With the objective of encouraging debate on the Moreover, protecting poor populations from the start-up of a new water policy in Argentina, effects of floods in a country such as Argentina is Chapter 6 proposes a framework for Water another important element in the fight against Policy Options and suggests the next stages of a poverty. possible Action Program. Modern Water Resources Management: Finally, it should be noted that, since it is an Sustainable and Integrated Concepts “Executive Summary,” Volume I must be brief and limited in terms of its number of pages. The concepts of sustainability and integration of More specific details can be found in the Water Resources Management (WRM) are thematic reports in Volume III. relatively new. Nowadays WRM is a cross- cutting theme that involves areas such as economics and finance, social, environmental, Challenges and Opportunities political and institutional issues and options. Moreover, modern WRM is a subject that encompasses different levels of government (National, Provincial, and Local) and also The modernization of water resources involves interests of public agencies, private management (WRM) is a key challenge for the sector and the entire civil society. There are start of the new millennium. The modernization functions that are typically public goods and of Argentina’s WRM has implications for others that could be done better by private sector. sustainable development, the economy, health, and the fight against unemployment and poverty, During the last 20 years new water legislation, and therefore merits considerable attention both regulatory and institutional reforms were enacted from federal and provincial sectoral authorities in many developing countries (France, Canada, and from society as a whole which should Australia, Spain, United Kingdom) and are more assume the cost of efficient WRM responsibly recently advancing in many Latin American and without delay. countries (Mexico, Brazil, Chile, Venezuela) and other top-notch, emerging economies (Israel, The beginning of the new millennium, together South Africa, Turkey). with changes in provincial and national governments, brings with it a framework for The traditional “Water Institutions” (1880- reflection on the challenges and opportunities 1970) were designed to accomplish a very for improvements in seeking solutions to social, important development mission whose main economic, environmental, financial and political objectives were linked to developing new water problems, many of which have implications on resources and providing expansion of “water WRM policies. There are also driving forces services” (water supply and sanitation, irrigation, promoting global changes which cannot be hydropower generation, etc.) to new users. ignored and which offer possible opportunities These new users in the said 100-year period 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 “managing the supply.” At the The major challenges of development, also beginning of that time, the water resources were related to water resources, include poverty plentiful, relatively easy to obtain, not affected alleviation, the sustainable use of water by contamination, and relatively cost effective to resources, and the high costs stemming from develop and manage. externalities whose preliminary estimates reach annual amounts of over 1.0% of GDP. It is Over the last 20 to 30 years the resources strategic to attack these growing problems as became scarce (in terms of both quantity and soon as possible, since costs are increasing and quality), difficult and complex to obtain and future solutions, due to cumulative effects, are conserve, and much more expensive to deliver especially more expensive and difficult. and expand. A new concept came in place, Providing safe water and sewer services to shifting from “managing the supply” into the disadvantaged populations in suburban and rural required “managing the demand.” Private areas is an extremely important challenge in the operators of “water services” also came onto the fight against poverty and unemployment, scene and somehow added complexity to the new WRM functions.

2 Box 1. CHALLENGES OF THE MILLENIUM AND DRIVING FORCES PROMOTING 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 WATER POLLUTION and surface waters, with negative externalities  FIGHT AGAINST Issue with implications on the definition of policies to POVERTY AND UNEMPLOYMENT allocate, invest in and provide services to the poor  UNSTABLE Implications on infrastructure needs for poor URBANIZATION BY DISADVANTAGED populations POPULATIONS  FREQUENT Chronic situation with strong social, economic and FLOODS financial implications that affect the most populous regions  GLOBAL CLIMATE Will surely have medium-term implications on water CHANGE resources management, its monitoring and measures to mitigate impacts

FORCES DRIVING Possible Implications and Opportunities OVERALL CHANGES  RAPID Opportunity to modernize monitoring, management and DISSEMINATION OF INFORMATION AND provision of water services KNOWLEDGE  TECHNOLOGICAL Opportunity to improve economic efficiency, mitigate INNOVATIONS problems, etc.  PRIVATIZATION OF Opportunity with change in public authorities (federal URBAN SERVICES AND REDEFINITION and provincial), “businessman” for role of promoter and OF ROLE OF THE regulator MODERN STATE  OPENING OF Global and regional phenomenon (MERCOSUR) with INTERNATIONAL COMMERCE implications on comparative and competitive advantages requiring attention in water resources management  GLOBALIZED Opportunities for international private sector FINANCIAL INTERCONNECTIO participation in investments and services NS  CHANGE IN Will surely affect working relations, social security and POPULATION’S AGE COMPOSITION urban services, including water and sanitation

3 Box 2 provides a hypothetical and comprehensive outlook of the key roles and functions of the Modern Concept of WRM, considering the required integration and sustainability. 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 shown through arrows. These concepts are key elements to be considered in any agenda for modernizing the WRM of any country or province.

Box 2: KEY ROLES AND FUNCTIONS FOR THE SUSTAINABILITY OF WATER RESOURCES MANAGEMENT

INTEGRATED WATER SERVICES WATER ENVIRONMENTAL MANAGEMENT & ADMINISTRATION Functions Functions MONITORING (Water Authority) Functions Functions - Conservancy Regulatory 1. Policy formulation and overview Public 1. Legal & regulatory functions - Environmental Protection 2. Strategic water planning 2. Law & regulations 3. Database management SUPERVISION/REGULATORY enforcement - Protection of Sources ENFORCEMENT 4. Supervision of river basin 3. Conflict resolution management - Hydropower 5. Supervision of water resources use - Irrigation 4. Requests & permits filing - Watershed management (surface and ground water) - Water supply & sanitation 5. Authorizing/denying permits & erosion control 6. Economic studies - Navigation to: 7. Licensing new projects - Flood protection -- withdraw water - Setting water-related standards 8. Analytical base gathering - Land use water protection -- dispose of effluents - Climate related 6. Management and operation of - Monitoring - Hydrometric measurements - Setting water service standards the register of water rights and - Groundwater uses: Provision of Services - Database management - Water quality -- Updating database (Public & Private) 9. Supervision of uses -- Consultation - Information dissemination - Surface water -- Dissemination of use - Groundwater CONSTRUCTION/ -- Granting rights - Bulk water fees OPERATION/MAINTENANCE - Hydropower generation 7. Groundwater permits - Disposal fees - Irrigation 8. Licensing, permits, sanctions 10. Information dissemination - Water & sanitation 9. Water rights transfers & - Flood protection cancellations - Rural drainage 10. Abstraction & disposal fees - Urban/storm drainage collection - River navigation

Function: Public Functions: Public, Private Function: Public Function: Public (Services Role: National Role: Provincial Role: National, Roles: National and Provincial and Civil Provincial Society Source: J. Simas in “Planejamento de Recursos Hidricos,” 1988, modified

4 2. FRAME OF REFERENCE the setting of regulations aimed preserving and protecting the country’s water resources. Although there is general consensus about the need for sustainable development of the country’s water Other agencies at national level dealing with water resources, there is no consistent, coherent and resources include: the Ministry of Economy, whose sustainable policy for water management at national Secretariats of Agriculture, Livestock, Fisheries and level. This situation is closely related to the political Nutrition, and of Energy and Mines deal with and administrative organization of the Republic of environmental components with their minimum Argentina which is based upon a federal system of prerequisites, as well as carry out the work of government, comprised of the central authority, 23 coordinating irrigation and hydroelectricity, provincial jurisdictions and 1,924 municipalities, with respectively; the Ministry of the Interior which is provinces having ownership of water. Although this responsible for coordinating flood emergency efforts, system causes difficulties in the application of general dealing with the legal administration of measures, at the same time it has the advantage of interprovincial waters, handling allocations and enabling each province, besides maintaining oversight administering and coordinating the execution of credit powers, to receive needs through municipalities and funds; the Ministry of Defense which is in charge of to be responsible for complementing and executing matters related to navigation; the Ministry of Health the future “minimum prerequisites” law on and Social Action which deals with drinking water environmental issues, especially with regard to WRM. supply and the disposal of sewage. Finally, the Ministry of Foreign Relations is in charge of matters Population related to international river and international rivers. The efforts of all these offices, without inter- institutional coordination, is the cause of constant Argentina’s projected population for 1998 and 2000, overlapping of functions and jurisdiction, at times based on the 1991 census, indicates a total of 36.1 leading to confusion between the technical and million and 37.0 million inhabitants, respectively. political. The population’s distribution throughout the country, which is comprised of 23 provinces and the Federal Capital, is highly unequal. The country’s average In the provincial sphere, most provinces have population density is 12 inhab./km2, but the Federal agencies in charge of administering water resources, Capital and the Province of Buenos Aires hold nearly but their nature and hierarchy are varied. There are half of the country’s total population, with a density administrations, authorities, bureaus, departments and of around 50 inhab./km2, while several provinces even ministries of ecology and environment. Units have a density of fewer than 3 inhab./km2 (Santa also arise as the product of emergencies and therefore Cruz, Río Negro and Chubut in Patagonia, Catamarca do not carry out policies that are previously agreed or in the Northwest and La Pampa in the center of the coordinated with other areas. country). Moreover, within the provinces there is an Institutions overlapping of missions and functions caused both by the complexity of the institutional structure due to the diversity of agencies responsible for water resources, Water resources management in Argentina has been and by the appearance of private operators and Public handled by agencies in three geographic spheres: Service Regulatory Agencies. national, provincial and river basins. The various levels of responsibility of the Public Administration At interprovincial level, the use of water in river and national, provincial and inter-jurisdictional levels basins covering several provinces is a source of can be seen in the following paragraphs. ongoing conflict. Its regulation, according to constitutional provisions and Supreme Court During the preparation of this report (October 1999), decisions, should be subject to interprovincial or at national level, the functions of the Under- regional treaties or compacts. Thus, coordinating Secretariat of Water Resources (SSRH), now a branch agencies began to form before 1969, with the creation of the Secretariat of Public Works (SOP) of the of ten River Basin Committees. In principle, these Ministry of Infrastructure and Housing (MIyV), were agencies fulfilled the objectives for which they were to: propose and execute policies, programs and created. But they gradually became weakened due to projects aimed at achieving sustainable development; their inability to resolve major jurisdictional conflicts propose and promote strategies aimed at integrated over the administration and auditing of their financial management of watersheds; and evaluate and promote

5 resources and fundamentally due to the lack of example. With the exception of the province of San financial autonomy. Luis, this regulation is subject to a rather rigid framework sponsored by the Legal Principle of As a result of this problem, only three formally Inherent Rights, which states that water may only be constituted and operational “committees” remain: used on land originally associated with the volume of Inter-jurisdictional Committee of the Colorado River water granted. (COIRCO); Regional Commission of the Bermejo River (COREBE); and Inter-jurisdictional Authority The predominant feature at provincial level is that of of the Limay, Neuquén and Negro River Basins. rather profuse legislation lacking systemization, Much of their activity continues due to the financial which is a cause of legal insecurity, lack of incentives support they can obtain through contributions from to save water, and intersectoral reallocation through hydroelectric generation, which clearly indicates the transfer or purchase of rights. The multiple sectoral importance of sustainable funds for the success of provisions often create overlapping functions, the such initiatives. collision of responsibilities and contradictory regulations that favor non-compliance with the law. Since the large river basins are interprovincial, or It should be acknowledged, however, that all these serve as borders between provinces and with federal laws and regulations are evidence of the provinces’ territory, conflicts persist and worsen. Recent efforts effort to resolve their own water problems and thus by the national authority have brought provincial are the legal expression of the principle of “dealing authorities together to sign treaties aimed at solving with water matters at the lowest possible level.” (See conflicts in the basins of the Picasa lagoon; of the Annex 4). Pasaje – Juramento – Salado river; of the Salí-Dulce river; and of the Abaucan – Colorado – Salado river. Limitations and Opportunities

Legal Framework Scattering is, without a doubt, the dominant feature of the country’s institutional situation with regard to the management of its water resources by countless At national level, Argentina’s water resources policy public agencies dealing with water resources is based on constitutional provisions that reaffirm to management. provinces all powers not delegated by the Constitution to the Federal Government as well as the First, the constitutional jurisdiction through which provinces’ original ownership of natural resources ownership of natural resources is granted to existing in their respective territories, with surface provinces, is cause for confusion and has become an and ground water having the character of publicly- obstacle to the existence of a national framework law owned assets. In addition, the Federation is granted through which necessary guidelines could be issued jurisdiction over navigable rivers and international for integrated, rational water use. For example, it is waters. There is no Water Code or Law of a national currently difficult to bend priorities on water use and scope. The Republic’s civil code, besides indicating incorporate environmental use, transfer water rights to various restrictions on the use of water, limits itself to uses with greater social, environmental and economic indicating concessions as means of acquiring the right benefit, and encourage efficient water use. With the to use waters. 1994 constitutional reform, this stumbling block appears to have been overcome, since the nation was The 1994 constitutional reform, by referring to the granted express authority to dictate regulations that environmental issue, allows the National Congress to contain the "Minimum Prerequisites of Protection" on “dictate regulations that contain the minimum environmental matters. prerequisites for protection, and to provinces, those necessary to complement them, without their altering This is the chance for the Under-Secretariat of Water local jurisdictions”. This provision gives the country Resources to be able to exercise its leadership by the opportunity to establish the legal framework that bringing provinces and civil society together to states the principles, roles and duties, processes and discuss the structure and fundamental issues of a instruments that form the national institutional mutually agreed draft law. If this sort of participatory framework without the need for provincial adherence. focus is followed, once the Minimum Prerequisites Law is enacted at national level, provinces may be At provincial level, there is specific legislation for expected to accelerate the adjustment and consistency water resources in most provinces, issued principally since the 1940s, using Mendoza’s 1884 law as an

6 of their legislative schemes on water resources to this law.

Second, the privatization of the national Water and Electricity company started the movement for provinces to transfer irrigation districts to users’ organizations. To date, this process of transferring districts to users (consortia of irrigators, irrigation companies, etc.) has had different scopes and results. In Río 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 of 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 turning the present crisis into an opportunity for change.

Finally, as demonstrated by current coordination initiatives in 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.

7 3. WATER RESOURCES AND Bordered by 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 28% of the Located at the southernmost end of the South population (density of 23 inhab./km2). Due to American continent, the Republic of Argentina has an significant water deficits for most of the year, area of 3.7 million km2, of which 2,780,400 km2 are irrigation is also essential for the development of on the continent while the remainder corresponds to certain crops. islands and part of Antarctica. The continental portion extends 3,700 km between 22° and 55° Figure 1 latitude south. This large extension determines a Distribución de los Recursos de Agua wide variety of climates, from subtropical in the north Superficiales por Región to the cold of Patagonia in the south.

Litoral- Central- Strong climate contrasts Mesopotamia Pampa Gringa y Gran 1% Average annual precipitation varies from less than 50 Buenos Aires- Pampa mm in certain regions of the Provinces of San Juan Húmeda and La Rioja to the exceptional extremes of 5,000 mm 88% Nuevo Cuyo- Noroeste in the Andean-Patagonian forests. In general the 2% marked inter-annual variability causes drought and flooding problems, depending on the regions. In Colorado-Río Negro contrast to the rest of the country where there is 5% marked seasonability, on the plains of the Pampa the Patagonia Sur seasonal distribution of rainfall is more uniform. 4%

Annual isohyets of 500 and 800 mm allow the country to be divided into three climate regions: Regions m3/sec % humid (over 800 mm), semiarid (500 to 800 mm) and arid (less than 500 mm). According to this division, Litoral-Mesopotamia + Greater Buenos-Aires + 76% of continental Argentina is located in arid or Pampa Húmeda 18 400 88 semiarid regions, which makes the country Nuevo Cuyo-Noroeste 321 2 predominantly arid and semiarid (see map of Colorado-Río Negro 1 095 5 Agroclimatic regions). Central-Pampa 178 1 Southern Patagonia 896 4 Total Nacional 20,890 100 The humid region, with over 800 mm of annual precipitation and a surface area of 665,000 km2 (24% of total surface area), concentrates nearly 70% of the population (40 inhab/km2), 80% of agricultural and Abundance and spatial imbalance of livestock production value, and 85% of industry, as surface resources well as the essential portion of the country’s infrastructure services. Agriculture is essentially Surface water resources are estimated at over 26,000 rainfed; however, in the past two decades there has m3/s as an average volume (820 km3/year), been a strong development of complementary equivalent to a very high volume of 22,000 m3 per irrigation. inhabitant per year, with overall good quality.

2 However, the real problem of resources is their The arid region occupies 1,710,000 km (61% of the uneven distribution in terms of space and time (see country’s total) and is situated to the west of the 500 map Grouping of Provinces in Regions for mm isohyet to near the spurs of the Andean cordillera. Regionalization of Water Resources and Figure 2). The population settled there accounts for only 6% of the country’s population (density of 1.1 inhab./km2). Nearly 85% of total surface water resources are in the Farming requires full-season irrigation. Its Plata River Basin (22,000 m3/s) which, in relation to development is therefore a function of water other basins, has the country’s largest concentration availability and soil aptitude. of population and economic activities. The basin includes the entire humid region and part of the semiarid region, and occupies 30% of the national

8 territory. Rivers, of pluvial origin, include the The country has always faced extreme situations of Bermejo, Paraguay, Uruguay and Paraná, the latter excess or scarce water. The causes stemming from being the most important because of its average environmental degradation or climate change, or both, annual volume (over 15,000 m3/s). are still being discussed. The 1982/83 and 1992 floods due to the extraordinary rise in the levels of the At the other extreme are located the endorreic Paraná, Paraguay and Uruguay rivers associated with (closed) basins (304,000 km2 and 11% of national the El Niño phenomenon have scourged the seven territory) which correspond to the arid and semiarid provinces of the Litoral-Mesopotamia region (Buenos areas of the northwest and center of the country, and Aires, Corrientes, Chaco, Entre Ríos, Formosa, which have less than 1% of all surface water Misiones and Santa Fe). The 1982/83 event that resources (223 m3/s). Some provinces are already flooded nearly 4 million ha caused material losses of experiencing symptoms of hydrological stress, around US$1.8 billion. according to United Nations criteria on firm availability per inhabitant (Figure 2). An environmental and public health problem: aquifer contamination To buffer the seasonal variation of surface runoff and adjust resources to needs, the country has built an Due to its spatial distribution, its seasonal stability important hydraulic regulation capacity with over 100 and the flexibility that allows it to be exploited, major storage dams in operation, most of which are groundwater is widely used in all socioeconomic for multiple uses (electrical generation, municipal and sectors. Its use ranges from small home wells to meet industrial water supply, irrigation, flood mitigation, the domestic needs of families in the suburbs of navigation and recreation). The total capacity of Buenos Aires to an array of 118 irrigation wells in the reservoirs is about 160 km3. Tulum Valley (Province of San Juan) which can provide a volume of 24 m3/s, to wells that extract Figure 2 water from the Paraná aquifer which is highly salinized but suitable for industrial uses. Per Capita Water Availability in Arid The average national contribution of groundwater to Provinces 2,974 3,727 meet total demands is 30% but this figure does not ad- 3000 equately reflect the relative importance of this re- M3/hab/año source (see Box 4). In effect, in irrigation in the arid Nivel de 'stress' (PNUD) 2500 Spain-- and semiarid regions, groundwater reserves assure the multi-annual regulation of resources and allow peri- 2,085 ods of drought to be overcome, such as that of 2000 1967/1972, thus compensating for the lack of surface 1,635 resources. 1500 1,125 Despite groundwater’s strategic role in the country’s 1,044 955 water resources management, there is no real integrat- 1000 ed management of surface and ground water, and 561 488 --Egypt aquifer protection has been overlooked. Mention 500 should be made of the problems of elevated fluorine and arsenic contents stemming from strong modern --Israel Algeria-- 0 and recent volcanic activity and those of nitrate contamination caused by human activities.

In the Federal Capital and the urban conglomerate of Buenos Aires, over the past 30 years more than 500 water supply wells had to be withdrawn from service due to quality problems caused by irrational exploitation of the aquifer (high nitrate content in wells located in urban areas, salinization due to over- exploitation and industrial pollution) (see Figure 3). The problems of high contents of fluorine and arsenic as well as nitrates in groundwater exploited to supply

9 the population are authentic risks to public health. In contact with the second layer, causing accelerated several provinces, arsenic levels considerably in contamination. excess of drinking water standards have been detected in water supplied to the population, especially in rural As a result, we are facing a very serious situation: areas3. “groundwater contamination [is] the most important pollution problem in Argentina”5 (see Box 3). It is in Figure 3. Contamination Problems in this state because the degradation of groundwater Groundwater Used to Supply the Buenos Aires quality generally takes years, if not decades, to Metropolitan Area manifest itself.

Domestic Municipal Well Well Household BOX 3: GROUNDWATER PROTECTION and Industrial Pampa Aquifer Pollution In the context of water resources management Poor natural quality and use, groundwater is becoming increasingly important, especially in arid and Puelches Aquifer semiarid areas. The planning of these Over-exploited resources should go hand-in-hand with that of Saline Intrusion surface water in river basins. Emphasis salinization should be placed on programs that utilize the most effective, economic methods to protect Paraná Aquifer groundwater quality in vulnerable geological Salinized zones, the array of wells and recharge zones. Source: Environmental Pollution in Argentina: Problems and Measures should be adopted to avoid Options; World Bank 1995: Modified excessive pumping of aquifers in coastal areas and of aquifers lying beneath saline aquifers, Regarding irrigation in arid and semiarid zones, the since the extraction of excessive quantities poor management of the irrigation water/water may cause irreversible contamination of table/soil and drainage system has caused serious aquifers with salty water. To recover problems. The salinization of water and soils is a contaminated groundwater and keep it from serious threat to the sector’s sustainability. Over half becoming even more contaminated, it is a million hectares of irrigation land are already necessary to establish and implement affected by water and soil salinity and/or drainage appropriate environmental regulations and problems. This problem is concentrated in seven standards, as well as codes of practices for the provinces4, and represents 60% of their irrigated area. transportation, transfer, storage and disposal As an illustration, the situation of the province of of hazardous and toxic waste under safe Mendoza, which has the country’s largest irrigated conditions. Planning is also essential in order area, may be mentioned. Poor management of to deal with droughts. Depleted aquifers irrigation water and agricultural, municipal and should be recharged in order to store and use industrial pollution have deteriorated the first-layer water in cases of emergency, so as to ensure aquifer in the Northern Oasis, causing high levels of the survival of the population and of salinity and nitrates. Users have gradually started to ecosystems in periods of drought. exploit the second and third layers which are deeper and of better quality, abandoning thousands of old Source: Water Resoruces Planning, World Bank Policy Paper 12335, 1994. wells. These wells, due to poor construction and corrosion, place the poor-quality water table in direct

3 The limit is 0.05 mg/l for arsenic; in the Province of Córdoba, values of 0.08 mg/l have been detected in the Cuarto basin and Aquifers constitute an essential asset for the country’s even extreme levels of 0.13 mg/l in the department of Marcos Juarez and 0.18 mg/l in San Justo. socioeconomic development and the well-being of its population. Information and data on groundwater resources, although variable from one region to 4 These are the Provinces of Chubut, Mendoza, Río Negro, Salta, San Juan, Santiago del Estero and Tucumán which have a total of 5 923,000 hectares of irrigation, representing two-thirds of the World Bank. Environmental Pollution in Argentina: Problems national total (see Annex 3). and Options. October 1995

10 another, are sufficient to begin planning the rational management 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 it.

Regionalized View of Water Problems

Taking into account surface and ground water resources, the main problems concerning their efficient management and protection, 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 at the end of the report.

Box 4 – Grouping of Provinces for the Regionalization of Key Water Resources Issues

. REGIÓN 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: Paraná, Paraguay, pesticides 1. LITORAL – Entre Ríos 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, Córdoba . Dividing zone among Plata, Atlantic and industrial, automotive, military and nuclear La Pampa endorreic basins waste dumping . Chaco Pampeano and intermontane  Scarcity in some areas aquifers Principal water problems: water quality, pollution, 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 Tucumán . Endorreic 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. GRAN P. de Buenos . Humid climate  The country’s largest demographic, agricultural, BUENOS AIRES – Aires . Rainfall between 800 and 1000 mm/year livestock and industrial concentration, but with PAMPA Federal . Resources of Plata River abundant water. HÚMEDA 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 – Neuquén . Arid and semiarid climate, rain-snow  Vast zone without rivers between Negro and RÍO NEGRO Río 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, rural supply

6. PATAGONIA Chubut . Arid climate  Water pollution from oil and coal exploration SUR Santa Cruz . Rain-snow scheme Tierra del . Continental ice sheet Fuego

4. USES AND MANAGEMENT

12 An estimate of the contributions of surface and by urban and industrial supply. The importance of ground water in the coverage of the country’s total groundwater, 30% of the total, is remarkable (Figure consumptive demands is summarized in table 2. 4 and Box 5). Irrigation stands out at as the principal user, followed

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 modified and rounded

The analysis of water resources use and management by sectors, summarized below, points out the priority actions to be undertaken. Said actions should be implemented in parallel, while the necessary reform is carried out to improve water resources management, keeping in mind the legal and institutional limitations. Sectors with consumptive use include those of industrial, livestock supply, urban water supply, sanitation, and irrigation. Due to the inefficiency of systems of use and their impact on the environment, economic opportunities stemming from improved efficiency are significant

Drinking Water and Sewerage. In 1999 only 81% of the urban population was connected to water networks and 38% to sewer networks. The situation for the country’s five million rural residents is estimated to be even worse: 17% with water and fewer than 3% with sewerage. In Argentina this is acknowledged to be unacceptable, especially if one considers that this is one of Latin America’s countries with the highest per capita incomeWater Withdrawal and that for lessConsumptive wealthy Use countries / Per Sector have better coverage (see Figure 5). Moreover, the quality ofIndustrial service is deficient. There is rationing in nearly all large cities. This situation is exacerbated by irrational consumptionLivestock and wastage in Argentine systems, in large part caused by the absence of adequate charges basedSupply on metered service, the most evident indicator of which is an average productionSurface Water of nearly 500 liters/inhab/day,Irrigation one of the highest levels in the world.

0 5 10 15 20 25 30 35 40 Surface Water km 3/year Groundwater

Surface Water Withdrawal Groundwater Withdrawal 24 500 Million m 3/Yr 10 000 Million m 3/Yr Figure 4

Livestock 4% Livestock 20%

Irrigation Irrigation Supply Supply 75% 60% 15% 10% Industrial 10% 13 Industrial 6% Figure 5 poor, in many cases has worsened their service conditions (see Annex F, Volume III).

Urban Access to Safe Water and GNP Per Capita Irrigation. The country has 125 irrigation

10000 systems or zones, including complementary and

) 9000 Argentina full-season irrigation, both public and private. In S U 8000 certain zones, especially in the arid region, there s d

n 7000

a is a state registry of water concessions and uses;

s Chile u 6000 o in others this use is mainly private, by direct h t

$ 5000 Uruguay

( Brazil pumping of surface and/or underground sources a t

i 4000

p Mexico and generally without volumetric or flow a

C 3000

r measurement of a water use concession or e 2000 Colombia P

P permit, which hinders the control and exact

N 1000 G 0 knowledge of surface areas. 60 65 70 75 80 85 90 95 100 % Access to Safe Water Lands potentially suitable for irrigation are estimated at around 6,300,000 ha, of which only Calculated from 1999 World Development Indicators data 2.5 million may be feasibly adapted for full- season irrigation. The total irrigated area is Most of the systems supplied from shallow around 1.5 million ha (73% or 1.1 million ha in aquifers distribute water contaminated by natural arid and semiarid zones), while the surface with causes and/or by industrial, household and available irrigation infrastructure (including all agricultural uses, which results in substandard registered) covers around 1.75 million ha. quality. In fact, the most acute environmental Although this may indicate a great potential for problem is acknowledged to be arsenic and expansion, in many cases large investments are nitrate contamination in many aquifers that serve required to be able to deliver water to areas to be as a source of human water supply. incorporated.

In addition, a relatively low proportion of Currently 68% of the area under irrigation is municipal waste water is treated nationwide. located in arid and semiarid regions and the Sewer water, without proper conduction or remaining 32% in humid regions. This is treatment, directly contaminates aquifers which complementary irrigation or irrigation for rice are sources of supply. It has been estimated that, production. 74% of the systems or areas belong to achieve 90% coverage of water and 70% to and/or are administered by the public sector coverage of sewer service, without counting and 26% by the private sector. treatment, the annual investment of US$300 million would have to be increased to US$500 Although the area under irrigation represents million for 8 to 10 years. only 5% of the country’s agricultural area (30 million ha), its participation in sectoral With the objective of dealing with the above- production value has fluctuated between 25% mentioned problems, during the 1980s the and 38%. However, Argentina’s irrigation sector Government decentralized services to provinces is experiencing a profound structural crisis, not and in 1991 began to promote private only in producers’ loss of profitability but also in participation, assuming the role of regulator outdated technology throughout the productive which is essential but heretofore unknown in the system. country. The latter effort, unprecedented in Latin America, has caused 60% of the urban Based on an in-depth analysis of the sector (see population to be served or close to being served Volume III, Annex D), it is concluded that the by private companies. A key issue is to best sectoral policy is the recovery and acknowledge that neither the government nor modernization of areas currently equipped with professional organizations have the institutional irrigation, in contrast to investments in capacity to provide the regulatory framework expansion. required to regulate companies that provide public water and sanitation services. Perhaps the Four major problems are identified as requiring most regrettable consequence is that, until now, attention: (i) combating salinity and poor the scheme, rather than having benefited the drainage; (ii) updating technology in the productive system (agronomic and marketing 14 base); (iii) consolidating the process of essential to promote associations of irrigation transferring districts to the user sector (private); system users, granting them greater and (iv) the tariff issue. responsibilities in the management, administration, operation and maintenance of Of the total 1.5 million ha under irrigation, about distribution systems, including giving them the 500,000 ha are considered to be affected, to function of charging tariffs or fees and the varying degrees, by drainage and/or salinity function of levying penalties for non-payment. problems (see Annex 3). Efficiency in water use The most successful associations were those that is generally very low: the average is less than had areas of over 18,000 ha, to take advantage of 40%. economies of scale (Mexico and Turkey). This is also relevant in: the rehabilitation and Small- and medium-scale farmers were being modernization of primary infrastructure; the bypassed, not only in terms of the incorporation establishment of adequate water tariff structures; of new cropping and irrigation technologies but, the introduction of efficient operation and more importantly, in terms of the adoption of maintenance technologies; agricultural marketing organizational breakthroughs and new varieties technology; and assistance in financing of fruits and vegetables with better commercial improvements to irrigated lands. The provincial acceptance. In contrast to their Chilean roles should be those of: regulation, promotion neighbors, Argentine irrigation producers, of sustainable and competitive use, financing and lacking information, repeated traditional crops, supervision of irrigation functions. thus highlighting pre-existing monocropping situations. Outdated irrigation technologies are Inefficient water use in the urban water supply reflected in deficient maintenance methods and and irrigation sectors wastes resources and needs obsolete systems of applying and distributing to be urgently reduced. A modest 10% gain in water through the use of gravity. The financial efficiency in these sectors would mean a savings restriction experienced by provincial economies of around 3 billion m3 of water, resources that since the 1995 crisis and the subsequent lack of would be immediately available to extend the credit has hindered the reconversion of perennial service. However, for this gain to be long-lasting crops which have the most outdated and sustainable, actions need to be included in an technologies, has delayed the implementation of integrated management system, taking into diversification processes, with repercussions on account legal, institutional, socioeconomic, the increasing obsolescence of civil works, technological and environmental aspects. installations, machinery and other equipment. Improved efficiency in irrigation will be Most Irrigation Districts (public irrigation), sustainable if it is supported by the initially under the aegis of the Federal modernization of the sector whose structural Government (around 800,000 ha), were crisis was analyzed above. In the drinking water transferred to the provinces when the sector, waste could be reduced through the use of privatization process began. This new provincial various quickly applied technological measures, responsibility opened the process of especially metering and tariffs based on decentralizing the operation and maintenance of consumption, but water conservation is systems in users’ organizations supervised by the implemented over the long term with relevant water authority. The timetable established for communication and educational efforts and an transfers is different in each province and adequate tariff system. Urban water supply depends to a great degree on the idiosyncrasy of cannot be separated from deficiencies in sewer its producers. Promoting and supporting services and contaminated aquifers whose provinces in the transfer of this irrigation protection is as much an important priority as infrastructure is an important political decision to waste reduction. improve the sector’s efficiency by transferring decision-making to the lowest and most appropriate management levels.

However, the transfer process in Argentina is incomplete and still requires government attention to be effective, as indicated by World From fragmented management to Bank experience in other countries where similar integrated, modern and efficient policy decisions were made. In Mexico, it was management

15 Despite their enormous water potential, Although the country has constantly faced considered overall, different areas and extraordinary shortages, existing data on floods socioeconomic sectors of the country have had to is scarce and scattered. However, it may be said face difficult and even critical situations with that, in general, the rainfed farming area has regard to their water needs. The analysis excellent humidity conditions. To compensate presented in the paragraphs above points out the for the slight seasonal water deficit, numerous deficiencies in all the physical, complementary irrigation, especially that based technological, socioeconomic, financial, legal, on groundwater, is being developed at an institutional and environmental aspects of the accelerated pace. Aquifers are used as inter- country’s water resources management. annual reservoirs, which makes it possible to mitigate decreased volumes of surface water Current management of water resources both at during prolonged droughts. When the shortage national and provincial level is characterized prolongs for several years, conflicts occur over mainly by sectoral and institutional the over-exploitation of aquifers, with all sorts of fragmentation, without consistent, coherent legal adverse effects. This is another reason to take support due to the deficient or non-existent care of groundwater quality and thus conserve a power granted to the public registry of water use, resource that will not likely be depleted but development and disposal rights. These rights, whose contamination, if current trends persist, lacking notarization and the physical security of could make it useless. the resource due to the lack of reliable, up-to- date records on supply and demand, offer no Water quality and pollution legal security to users and hinder the development of a water policy that considers The problem of water quality in Argentina has Minimum Prerequisites for Environmental some unusual features. For water supply to the Protection. This situation is worsened by population, the current classification (i.e., good, outdated technologies. In current practice, all mediocre, poor or unsuited for the use essential management practices are taken into considered) does not really reflect water quality. account, from the technical to the social, but in What would truly classify quality would be the an isolated, static manner, without dynamic, terms good, bad, dangerous or toxic. In addition, iterative integration which should be the bodies of water (aquifers, natural or man-made mainstay of water resources planning and reservoirs) are particularly fragile and vulnerable management. The (provincial) “Registry of to natural contamination and that induced by Water Uses and Rights” should be an essential human activities (see Figure 3 and Box 6). instrument of integrated management, assuring not only the legitimacy of granted extraction The problems of high contents of fluorine and rights but also a means of controlling volumes arsenic as well as of nitrates in groundwater used and charging for usage. It should contain to supply water to the population, have already mechanisms for ongoing, systematic updating, been mentioned. These constitute a public health inspection and monitoring, and electronic, geo- risk. It was also mentioned that these are referenced database, transparency and easy problems resulting from poor management of access to information (Mexico). In several aquifers (generalized over-exploitation or regions of the country, progress has been made localized over-extraction, lack of protection and in implementing the joint use of surface and conservation measures), and deficiencies in ground water resources, but a true, integrated sanitation systems that directly pollute the source management is needed, taking into account not of supply. The same situation is found in several only quantity but the quality dimension and surface reservoirs such as the San Roque and Los especially the protection of resources from Molinos lakes in Córdoba, the Lacár lake in various sources of contamination. Neuquén and the Nahuel Huapi lake in Río Negro which are being polluted by untreated The lack of inter-institutional coordination, as wastewater from urbanization along rivers. In well as of communication and exchange of addition to pollution, there are other important information, among different agencies causes an urban issues related to floods and drainage. overlapping of functions and sometimes dilutes responsibility. There is no database nor a water Box 6 resources information system, either at national Typical Cases of Urban Water Pollution in or provincial level, to support management and facilitate communication. Argentina

16 A. Metropolitan Areas (Buenos Aires, because they affect the country’s most developed (>76% PGB) and populated (70%) areas and are Córdoba, Rosario, Santa Fe, and Mendoza) of long duration, from two weeks to two months.

1. Contamination of surface and underground sources For some time, progress has been made both in from untreated urban waste (severe in small rivers and streams) proposing policies to deal with floods in the Litoral and Mesopotamia, and to put them into practice. If floods have scourged these regions 2. Improper disposal of solid and toxic industrial waste (especially on the outskirts of urban areas) with greater intensity, particularly along the banks of the Paraná, Paraguay and Uruguay B. Medium and Small Cities rivers, as well as some of their main tributaries, one should also consider the problems caused during humid years both in the southwest (region 1. Contamination of surface and ground water from sewage and inadequate solid waste collection and of linked lagoons) and in the northwest of the disposal (throughout the country) province of Buenos Aires and the south of the 2. Pollution by large local industries: provinces of Córdoba and Santa Fe.

 Petrochemical industry, limestone extraction Debate continues on the underlying origins of (Pampa Region) increased high water levels or exceptional floods  Oil drilling, sugar industry, and lead smelting and their ever-increasing damages. Some people (Northwest Region) attribute them to man’s depradatory actions,  Oil drilling and uranium mining (Cuyo Region) others to climate change, and a third group to soil  Oil drilling and coal mining (Southern Patagonia) use that totally ignored the laws of nature. Recent research appears to confirm that El Niño is responsible not only for floods in the Litoral and Mesopotamia, but also for flash floods in rural areas which lack the experience to deal with Floods such sudden phenomena.

Argentina is among the 14 countries most To deal with these problems, the current of affected by catastrophic floods, with losses of traditional solutions based on engineering over 1.1% of the national PGB. structures is losing ground to the growing difficulties of obtaining financing and evidence There is a high frequency of flooding, more than of the lack of effectiveness in control structures one important event every ten years or less. in several dramatic examples, such as the 1992 Since 1957, 11 important floods (one every four Mississippi floods. The world trend is to years) have occurred, causing major losses in: complement and even replace these traditional infrastructure, agricultural and livestock solutions with early warning and prevention production, private goods and economic measures, rational soil use planning, zoning to activities. These are negative effects with very transfer people and cattle during extreme floods, strong economic, financial, and psycho-social construction of culverts and fords with sufficient consequences. capacity, instead of large bridges, to keep water from going over roads on a handful of occasions The country has four principal types of floods: during a road’s useful life. This focus is also i. In the valleys of large rivers (due to high part of integrated water resources management. water); Argentina will certainly adopt it to try to mitigate ii. In the Andean foothills (due to rapid snow damage from events such as the extraordinary melt); flooding of the Paraná River in 1982 and 1983 iii. Urban flash floods (due to heavy storms); which inundated 3.8 million hectares and caused and losses totaling US$1.79 billion. iv. Floods in closed plains (due to heavy storms but often associated with deficient The Bank recently provided assistance to repair drainage, soil management and deficient damage caused by the 1982/83 and 1997/98 rural roads). floods in the Litoral and Mesopotamia, but it is necessary to protect other urban areas and Of all these, floods in the valleys of large rivers complement drainage in urban and rural areas. of the Plate basin are the most significant Currently, a loan is being executed to: i)

17 strengthen the protection of high-value zones that were affected by the floods, beyond the banks of the Paraná River; ii) prepare early-warning models for timely evacuation of people and Externalities and Environmental Costs construction of shelters; and iii) zoning to determine flood zones that cannot be protected Finally, integrated water resources management and relocation of people living in those zones. should explicitly include environmental costs and negative externalities which imply poor Tariff Scheme management. Externalities are external, undesired and uncompensated costs that one Argentina still has a long way to go in terms of creates and imposes upon third parties for recognizing and fully appreciating the economic carelessness in the exploitation and use of a value of water. The value of water represents common good such as an aquifer, reservoir or the measure of its usefulness to users in a city or river, and more generally the environment. region, and its importance to society, measured There are various flagrant cases of externalities in economic terms beyond costs and price, in Argentina, created by careless treatment of the fundamentally due its importance and essential environment, including: character in its utilization for other purposes (such as for drinking, irrigation, hydroelectricity,  The aquifer in the Northern Oasis of sanitation, industrial production, recreation, etc.), Mendoza. Mismanagement of irrigation given the characteristics of its spatial and water and agricultural, municipal and seasonal availability and its quality at the place it industrial pollution have deteriorated the is harnessed. first layer of the water table which now has high levels of salinity and nitrates. Users The various tariff schemes in Argentina for have gradually begun to exploit the second different water uses are far from integrating this and third layers which are deeper and of concept of the economic value of water. In better quality, abandoning older wells. general, tariffs are only sufficient to cover the Externalities include the loss of capital from costs of water system operation and abandoned wells that have not been maintenance. completely clogged and sealed (to avoid contamination through vertical filtration), The structure of tariff systems for different water supplementary investment in wells and uses should allow a certain degree of pumps to exploit deeper layers, the compatibility among aspects of service supplementary cost of pumping, the efficiency and adequate financing of service supplementary cost of washing salinized companies. To include in the tariff system the soils, the complete loss of salinization and/or objectives of efficiency and redistribution of drainage problems. What is most serious income, and to make them compatible with the about this situation is that the aquifer, with objective of self-financing, it will be necessary its corresponding externalities, continues to to properly establish both the average level of deteriorate, and abandoned wells are quickly the tariff and its structure. contaminating the second layer of the water table. Considering that the tariff system is inadequate, some reforms are underway, although still  The Puelches aquifer in the tentative. Various options are available to metropolitan area of Buenos Aires. This expand these efforts, including: the setting of aquifer has been intensively exploited to bulk water pricing; a strategy for the drinking supply the area. Use grew to over- water and sanitation sector that balances the exploitation, causing a generalized reversal goals of universal service, taking into account in the natural flow of groundwater. In the fairness, financial affordability and fiscal mid-1980s, the resulting situation translated responsibility. This requires the establishment of into saline intrusion along the coastal zone appropriate incentives to conserve and care for of the Plate River and from rivers and the environment, and to attract private risk valleys with sewer water from the capital; the transfer of irrigation districts to user metropolitan area and phenomena of vertical organizations; and effective payment by users filtration of contaminated waters with high and polluters of rights to use and dispose water. levels of nitrates and arsenic. Wells with

18 water whose water did not comply with standards have been gradually abandoned, reaching a total of 500 in recent decades. The substitution of groundwater by water from the Plate River to supply the metropolitan area, although partially and in stages6, has caused the inverse phenomenon: the reappearance of the water table where it had practically disappeared, with levels rising to a depth of less than 1 m, causing the saturation of household septic tanks, the waterlogging of basements, garages, tunnels and underground storerooms, as well as various adverse effects on the foundations of buildings and other works. The environmental costs stemming from over- exploitation of groundwater, followed by the abandoning of wells and the rise in the water table, that could be accounted for, include: the costs of mobilizing another source of resource to replace Puelches groundwater, and the cost of waterlogging in urban infrastructure.

 San Roque Lake in Córdoba. This reservoir constitutes the main source of water supply to the city of Córdoba. The presence of cyanobacteria has been detected in the reservoir, and thrihalomethanes in treatment plants, with levels above normal. The probable cause of this contamination is urbanization around the lake which lacks an adequate sanitation system. The population of 74,000 doubles on weekends and during tourist seasons. Several academic studies indicate that the origin of cyanobacteria is the elevated level of nitrogen and phosphorus in the lake. The city of Córdoba, which is supplied with water from the lake, is enduring the externalities of this environmental contamination, with the subsequent risk to its population’s health.

A very preliminary and approximate estimate would place economic losses, associated with negative externalities linked to deficient water resources management, principally of groundwater, at over 1 billion pesos per year. Moreover, around 500 million pesos per year are associated with poor management of irrigation, salinity and poor drainage.

6 Around 250 wells are still used by Aguas Argentinas in its concession area. 19 5. TOWARD A NEW WATER POLICY general consensus on beginning the most pressing efforts to modernize the country’s water resources management. The Challenge Objectives of a new policy Despite their enormous water potential, considered overall, different areas and socioeconomic sectors have had to face difficult, It is up to authorities and society to define a new if not critical, situations with respect to their water policy, looking toward the new century. water needs. Several sectors of the population Based on the analysis of the country’s water still lack reliable drinking water without risk of resource status and key issues related to legal, toxicity, and basic sanitation infrastructure. The institutional, socioeconomic, technological and irrigation sector is losing its competitiveness on environmental aspects, the principal options of the continent’s market, with over half a million hectares suffering from drainage and/or salinity this strategy may be outlined, defining the basic problems due to poor water and soil objectives and actions to be implemented in management. order to achieve them with the corresponding implementation strategy. A new water policy The analysis presented in the above paragraphs should be part of the overall sustainable points out numerous deficiencies in the physical, development strategy of Agenda 21 and in technological, socioeconomic, financial, legal, accordance with the so-called Dublin principles institutional and environmental aspects of the (see chapter 6). country’s water resources management. The basic objectives of a new water policy If we were only to consider the above, the could consist of: outlook would appear somber and discouraging.  Putting an urgent stop to aquifer A constructive view contamination, restoring and preserving groundwater resources which, due to their importance, should constitute a national asset and strategic reserve. However, the strong points that Argentina has at hand would allow it to radically turn such  Quickly reducing the difference of coverage limitations into advantages. among rural areas and urban zones, for The profusion of legal texts and their drinking water services, free of any risk of corresponding institutions denote a strong toxicity, and sanitation services. tradition in water rights legislation and in the decentralization of water administration which  Recovery of large irrigation areas affected need only to be adjusted and modernized in order by salinity and drainage problems. to become efficient. Few places in the world have achieved joint use of surface and ground  Simultaneously modernizing the technology water resources such as that practiced in the and management of irrigation systems, as valleys of Mendoza and San Juan, although the well as agricultural practices, with the system needs to integrate the environmental objective of increasing productivity and component. In the early 1990s, Argentina production levels. successfully launched its most important drinking water and sanitation concession. Other  Reducing outdated technology in the water concessions will follow in the country’s major resources management system and in cities. information and communication systems.

The sector’s enormous human potential should  Substantially and quickly increasing not be overlooked; this could be developed efficient water use in the hydro-agricultural quickly with adequate training and technology and urban water subsectors to achieve a transfer. An in-depth reform of the sector may level worthy of the Latin American country take a long time. Nevertheless, the essential with the highest per capita income. conditions are present and there is evidence of a 20 The granting of rights (including use and Box 7: Managing Aquifer Over- disposal of effluents) and their registration Exploitation: Economics and Policy1 serve not only to stimulate the private sector

2 and markets, but also to grant legal security R.A. Young to the poorest and protect the environment. “ Aquifer management, which deals with a complex In summary, it constitutes the most interaction between human society and the physical important tool for integrated water resources environment, presents an extremely difficult problem of management. policy design. Aquifers are exploited by human decisions and over-exploitation is defined here, not in technical terms, but as a failure to achieve maximum economic  Promoting policies and implementing returns to the resource; it can be best understood as a sub- actions that halt surface water pollution optimal policy regime. Aquifer over-exploitation may be caused by either, or both, of two classic types of social caused by raw effluents of urban, industrial dilemma problems. First, aquifers are typically common and mining origin. pool resources, in which a migratory subtractible resources is exploited under an unrestrained rule of capture. Those using the resource are little motivated to Based upon this, the classification of objectives preserve its value (since anyone conserving it for future may vary from one region or province to another use simply leaves it for others to capture), and the in terms of their respective problems. collective inefficiency of a pumping race is likely to result. Second, extensive exploitation of aquifers often imposes unwanted damages on third parties (external With the purpose of achieving the objectives costs). Examples include: damage from subsidence of proposed in the new policy, the actions to be overlying lands, from intrusion of water of poor quality, or programmed should be supported by strategies from interference with interrelated water supplies claimed by others in wetlands or streams. Two types of collective that consider the environmental, economic and policy decisions must be addressed in the management or social dimensions of water. regulation of over-exploited aquifers. For one type, termed ‘managing the water,’ decisions must be made on: a) the appropriate annual rate of pumping; b) the geographic distribution of mapping; c) whether to augment water supplies and/or whether to artificially A regionalized, realistic and flexible recharge the aquifer. Another important type of policy, which...can be called ‘coordinating the people,’ strategy determines: a) the institutions and policies that divide the extraction rate among potential individual users and user classes and influence pumper behavior; and b) how rules for limiting pumping are monitored and enforced. Taxes, The numerous limitations, especially with regard subsidies, pump permits, exchangeable pumping to legal and institutional aspects, could make entitlements and education and research are among the people management options. Choosing an aquifer think one that these are insurmountable obstacles management policy must, in the final analysis, be on the path toward an in-depth reform of the recognized as a political, rather than a technical water resources sector. However, with a decision, because social goals must be brought into pragmatic focus and a sufficiently flexible and play and making tradeoffs among goals is a policy decision.” realistic strategy, it is possible to implement a reform that starts under a parallel track with .” 1“Selected Papers on Aquifer Overexploitation;” 23rd International various concrete programs and actions and offers Congress of IAH; Puerto de la Cruz, Spain. April 15-19, 1991 2 Department of Agriculture and Resource Economics, Colorado State short-, medium- or long-term solutions. It is University, Fort Collins, CO 89523 USA suggested that the first steps be taken without  Promoting decentralization by incorporating delay. the effective participation of users and provincial authorities in solving regional, Of the key issues needing solutions, several subregional and aquifer problems, through already have the implicit or explicit consensus of Basin Committees, Basin Inspection institutions such as civil society and users on Associations and similar institutions. required actions. These include:

 Through the improvement of a legal and The urgency of measures to protect and regulatory framework, creating a modern management aquifers which are being lost due registry of uses and rights, granting to the accelerated pollution of their waters. security to water rights to stimulate private Sustainable use, protection and conservation of sector participation, facilitate intersectoral water implies the participation of each and every transfers and promote efficient water use. user and at different levels, from the irrigator to the region, through the use of small basins,

21 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 soil management authorities in solving regional, subregional and and the management of drainage and rural roads aquifer problems will be essential to achieve this within an overall framework of land-use overall objective. But it should not be forgotten planning. that decentralization cannot go faster than the development of the capacity needed to make Regional Strategy such decentralization sustainable. A general strategy has been outlined, but it The protection of public health from the risk of should be acknowledged that flexibility is needed pollution of water supply sources, particularly in to adapt it to the characteristics of each region. rural areas.. The strategy will 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, include measures to mitigate the their sustainability. In areas particularly effects of flooding, and proper management of vulnerable to natural contamination from toxic micro-catchments, within an overall framework of land-use planning. Drinking water supply is a elements, the most innovative and sustainable public health problem. In rural areas and small techniques should be implemented to ensure towns, it would be important to ensure minimum public health protection. quantity and quality for drinking water and food preparation, using advanced technology in areas The need to overcome the use of outdated water with water that is very salty and/or toxic due to resources management technology, especially at arsenic, nitrate and fluorine content. provincial level. The use of positive and negative aspects of international experiences will In the Central-Pampa Region, priority should make it possible to considerably reduce the time be given to the problem of protecting the needed to implement actions, principally in population from the risk of toxicity in relation to basin coordination and management supposedly drinkable water. It is a public health instruments, the protection of aquifers from issue. Support should be given to initiatives such agrochemical pollution, the sustainable transfer as that of the joint intermunicipal agency for the of irrigation districts to users, urban environmental management of the basin of San management, the systemization of water Roque Lake (EIMAC - San Roque) which resources information and its management at constitutes a coordinating structure for the national and provincial level, as well as the restoration and preservation of the lake’s water updating and modernization of water rights quality. Another regional action would be the registration (see Annex 2). recovery and protection of soils affected by poor water management, along with the modernization A substantial improvement in the efficiency of of the irrigation sector. irrigation systems and systems of distribution and controlled use of urban water to drastically The protection, restoration and conservation of reduce wastage, leakage and unaccounted-for groundwater resources would be an absolute uses. Increased efficiency in the drinking water, priority for the Nuevo Cuyo and Northwest sewerage and sanitation subsector will rely on a Regions. Reclaiming large irrigation areas that strategy of technical support, training and full 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 demands in all water use sectors would be responsibility of users and their training. needed to support regional economic expansion and improve the population’s well-being. The reclamation and protection of soils salinated and waterlogged due to poor water management, The Greater Buenos Aires and Pampa to be carried out simultaneously with the Húmeda region would first need true urban modernization of the irrigation sector. planning and management, taking into account

22 the environmental dimension of protecting public health and natural resources. The region’s principal aquifer also needs close protection against risks of contamination from agrochemical abuse in complementary irrigation..

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.

The Río Negro-Colorado Region is to a certain extent an intergrade between the Patagonia Sur and Nuevo Cuyo Regions. It has a vast zone without rivers between Río Negro and Río Chubut. On the other hand it has a tremendous water resources potential in the Río Negro Basin. Irrigated land under agriculture for fruits and vegetables, once very properous, now deserves attention and reclamation. The strategy is a mix between those of Nuevo Cuyo and Patagonia Sur Regions.

23 6. WATER POLICY AND ACTION It should be noted that many elements of modern AGENDA water policy already exist on paper but lack the incentive and institutional framework that would ensure their applicability. In Mendoza, for Water policy framework example, principles for setting irrigation water tariffs exist in legislation, but price levels are nominal since they are related to historical values The policy reforms needed to modernize the that do not reflect economic costs. In addition, the country’s water resources management (WRM) chargeability (charging level) of said tariffs is low require careful, joint planning over a period of no – 55% -- and the current system does not offer less than 10 years, as demonstrated by recent incentives to correct this problem. experiences in Mexico, Chile, Australia and Brazil. However, it appears that, after many years and In the water supply and sanitation sector, through numerous tries, the essential factors for social and the reform program and private sector political consensus on water management are participation, water tariffs are progressively materializing and there are optimum conditions for nearing their marginal costs through market beginning the most urgent actions. At the level of competition mechanisms introduced in bids for the framework of current water policy and of the drinking water service concessions and the legal and institutional capacity for its effective periodic adjustments of prices established in the application, the study identified important contracts. Most drinking water concessions have conceptual gaps and institutional deficiencies managed to reverse the tradition of non-payment of (chapters 2, 3 and 4) which limit the efficient, water which is so common in Argentina, reaching sustainable development of Argentina’s water 85% on the first billing. This has been possible resources. due to the rapid improvement in services and the implementation of contractual instruments Principles. A modern water policy should be part allowing service to be cut off for lack of payment. of the overall sustainable development framework These elements of the water situation in Argentina established in Agenda 21 and in the Dublin are a reflection of the implications of political Principle. The agreements reached at these two economics which are always present in water important international conferences provide the consumption, due to social characteristics and elements of principles and best-practices for the political impact. sustainable development and management of water resources. It is therefore proposed that modern Basic policy elements. The study identified the water management be integrated, at basin level, main water policy gaps that conspire against the and administered with user participation in the modernization of water management in Argentina, most decentralized manner possible, and that it which ideally should be handled under the be supported by the three pillars: “Minimum Prerequisites for Environmental Protection” framework law required by the 1994 (i) environmental, through which constitutional amendment. To facilitate an attempt is made to halt and reverse the presentation, these public policy elements may be deterioration of the environment and natural grouped into four large areas: resources; (i) policies that promote the efficient use of water; (ii) economic, with the promotion of sustainable production that ensures (ii) policies aimed at the environmentally the rational use of natural resources and increased sustainable use of water resources; productivity through clear, efficient processes; and (iii) policies that provide legal security in rights (iii) social, with which actions to use water conflict resolution between are proposed to contribute toward overcoming the administrative jurisdictions and users; and social gap and improving the living conditions of the population, particularly in rural areas and smaller urban centers. (iv) policies to deal with social equity problems, that guarantee the needy population’s universal access to drinking water and sanitation services, 24 and other “public goods” such as urban and rural vision of water resources updated (supply, drainage and mitigation of the effects of floods. demand, quality, possible conflicts), as well as for providing the means to operate the system of generating and analyzing hydrometric and To optimize efficiency in the beneficial use of climatological data. Finally, and no less important, this resource, the usage right should be separate assigning them the role of organizing and from the land (principle of inherent rights) and, maintaining a constantly updated system to record especially where water is scarce and its and monitor water uses and rights, a key tool for opportunity cost is high, the price of water (right integrated water management; and use) should reflect its social and economic costs, respectively, and the volumes actually allocated and consumed. (ii) promoting associations of irrigation system users, granting them greater responsibilities in: management, administration, operation and To promote the environmentally sustainable use maintenance of distribution systems in areas no of water (surface and ground water), it should be smaller than 18,000 ha, to make use of economies administered by users at the most decentralized of scale; at the same time this would facilitate the level possible, generally at the basin and/or aquifer functions of charging tariffs or fees, and even the level, ensuring minimum ecological volumes, and function of penalizing non-payment (as shown by favoring human supply at rational levels. successful experiences in Mexico, Australia and Turkey); The legal quality of usage rights and the ability to resolve conflicts among users in a practical (iii) supporting provincial environmental manner, are an essential condition to attract private institutions in their capacity as authorities that investments while generating the financial implement water quality regulations; resources that are essential for the institutional sustainability of the water resources management system. The registration of uses and users in all (iv) creating, through strong initial support from provinces is therefore essential, as is the social the federal government and provincial agreements, establishment of a value for water rights and the basin and/or aquifer agencies in those areas with registration of sources and contamination loads, serious inter-sectoral and/or inter-jurisdictional with the corresponding social and environmental conflicts; and costs. (v) redefining the role of the federal government Due to its strong, positive externalities in terms of in water resources management, either through health, and for reasons of social equity, well- the strengthening of the current Under-Secretariat focused policies should be established to assure of Water Resources or the creation of a National universal access to drinking water, sanitation, rain Water Bureau or Agency with regulatory and drainage and flood protection services for the policy functions, and with majority participation needy; thus, social tariffs should be proposed, by the province. compatible with willingness or ability to pay, when the former is difficult to estimate, and direct and/or The federal government’s principal role would cross-subsidy systems preferably to finance non- be to mediate inter-jurisdictional conflicts over recurrent cost components. quality and quantity, provide incentives for improvements, supervise regulatory and overall Institutional Model. In addition to these policy policy, minimum standards and information, and elements that would ideally be part of the proposed promote the improvement of provincial capacity law of “Minimum Prerequisites for Environmental Protection” and its respective regulation, a practical institutional model to improve water A national consensus for the XXI resources management should be proposed, based century on: Of all the key issues that demand solutions, (i) strengthening of provincial several have the implicit or explicit consensus of water administrations in their role as economic institutions such as civil society and users on the regulators, responsible for keeping the prospective actions required, for which national consensus 25 could be reached for the next century. National, reform. For the design of this type of transaction, provincial and private sector authorities should with strong federal support, models and be involved, as well as civil society experiences from federal countries such as stakeholders. Australia, Canada and Brazil, as well as more centralized countries such as Mexico and France, To get this set of reforms under way, a major may be used. national consensus on the country’s water policy would be needed, along with strong support by the federal government, and a contribution from users and water polluters to promote self-sustainable The agenda and its priorities management. For example, if an initial tariff for use of bulk water use were established, equivalent A classification of actions is proposed, with the to one-thousandth of a peso per cubic meter of corresponding tentative implementation agenda, water, around 30-40 million pesos per year could ensuring its intersectoral consistency. A tentative be generated. It should be noted that a 500 ml regionalization of the above-mentioned actions bottle of water costs half a peso, equivalent to and priorities is also suggested below. 2.500 pesos per cubic meter. Water pollution (domestic and industrial) charges could begin, in nominal amounts, using the forfeit system as has been done successfully in Mexico. Subsequently,  Top priority (year 2000 ) as the registration of users and polluters is 6.1. Laws, regulations and institutional development. completed and more detailed analytical assessments are made, the proposed initial values The national Secretariat of Natural Resources and may be adjusted. At least 80% of resources Sustainable Development must exercise its generated should be administered in the provinces leadership and invite provinces and civil society by basin and aquifer organizations, as the case may to discuss the structure and key issues of the be. The remaining 20% could finance the proposed law of Minimum Prerequisites for regulatory function of national/provincial water Environmental Protection, achieve consensus resources organizations, the maintenance and and promote its approval and regulation. This expansion of the hydroclimatic data network, water would be the federal government’s chance to resources research and development, and the support provinces in instituting the legal training and improvement of human resources for framework that would establish the principles, the management and sustainable use of water roles and duties, processes and instruments that resources. form the institutional framework of integrated management of the country’s water resources. The most important thing is that said proposed In addition to the transitional and political law be a “framework law” that includes economy elements of water discussed above, it minimum modern principles and standards, should be acknowledged that the proposed task, ensuring: despite the consensus already reached, involves enormous practical difficulties. Thus, a system  Water as a finite, transferable asset, with should be proposed which is both flexible and sustainable charges for use (abstraction and adjustable over time, in which lessons learned may disposal) and services. be incorporated as reforms materialize. For  Integrated management by basin and aquifer, example, headwaters provinces may be opposed to supported by: (i) systematic monitoring; (ii) the reform if they maintain an essentially modern, up-to-date and transparent registry provincial vision and interests based on the of uses and rights; and (iii) prospective ownership of natural resources as granted by the planning. All are basic elements of national constitution. It is therefore essential to provincial planning. regulate the constitutional precept of “Minimum Prerequisites,” which would provide the basis for  Minimum standards for management of the the regional alignment and adjustment of quality, quantity and protection of water provinces’ specific legislations. Throughout this resources. process, the financial resources and guarantees of  Appropriate, transparent mechanisms to the federal government for the construction of support the security of the right and water works, as well as for the financing of encourage savings. programs that promote the reform itself, will be key elements for promoting and consolidating the

26  Streamlined, effective processes and In a country as large and diverse as Argentina, mechanisms to resolve conflicts over with a federal-type government and with a quantity and quality, at individual user level, complex legal and institutional framework at and inter-jurisdictional issues. national, provincial and municipal level, which involves numerous agencies dealing with water Once the Law is approved at national level, the resources, some of them having done so for long process of adjusting and modifying provincial periods of time, such planning cannot be done legislative schemes may begin, so that they can except through delicate inter-jurisdictional and offer greater consistency, uniformity and inter-institutional treatment that allows criteria to flexibility in the management of water rights. be agreed upon and activities to be coordinated At the same time, a means of modernizing, for such purpose. rationalizing and developing provincial water resources management structures would be The Master Plan should benefit from an in-depth, sought (see 6.6). up-to-date understanding of the physical, social, institutional and economic situations of the country’s varied geography and, to be efficient, 6.2. Communication and citizen participation. should be conceived as eminently dynamic.

It is equally essential that the federal government The specific objectives of Argentina’s Water and its representatives inform and raise the Resources Management Master Plan are the awareness of citizens that the sustainable use and evaluation of water supply, availability and protection of the country’s water resources are demand over a planning period of 20 years, for everyone’s responsibility. This would be carried all Water Planning Units (UPH – “Unidades de out by means of communication programs at Planificación Hídrica”) - regions into which the national, provincial and local level, both for the country has been divided for purposes of general public and for specific groups of users. In developing the Plan - and its coordination terms of program focus and implementation through a model to plan the management of this methodology, recent experiences may be used, resource that will allow the actions needed to such as those of Brazil and Mexico and those of comply with the general objective to be several European countries. identified and prioritized.

The UPH is the geographic sphere selected for  In parallel and in the short term.(2000 – 2002) qualitative-quantitative determinations of water supply, availability and demands. Each UPH 6.3. Water Resources Management Master covers a set of basins or water regions. Plan The Master Plan is expected to be developed in It is extremely important to highlight the attempt four stages. by Argentina’s national government to propose the need to prepare a Water Resources The first will correspond to the individualization Management Master Plan as an instrument to and proposal of variables, parameters and indicate programming, budget allocation and scenarios, as well as the proposal and selection management control. of criteria to estimate inputs and results of the planning model. This task is currently handled by the National Bureau of Water Policy, a branch of the Under- It will include the evaluation of supply, Secretariat of Water Resources of SRNyDS. availability and demand of water as well as its evolution over the selected planning period. The general objective of the Master Plan is to obtain, through technical, economic, The evaluation of water supply will cover environmental and social analyses, the planning surface and ground water resources, water elements needed to achieve rational use and availability and water with damaging effects. preservation of water resources, seeking a coordinated, sustainable improvement of the To evaluate demand, a survey all current and quality of life and development of the potential water uses should be carried out. Both population. for current and future demand, a distinction should be made between consumptive and non-

27 consumptive uses, differentiating values for nitrates, thereby avoiding the negative experiences current and future demands, both met and unmet. of various European countries. They would form part of the policy of public awareness and the The third stage will consist of applying the formation of public opinion in favor of the planning model adopted for three planning protection and sustainable use of the country’s scenarios. This stage will include the preparation natural resources. of lists of prioritized, necessary actions, that may be offered for execution by the private sector and 6.5. Reclamation of lands with drainage and/or those that can be handled by the public sector. salinization problems.

Once the first three stages of the country’s Water The recovery program for these lands (half Resources Management Master Plan are million hectares, i.e., one-third of the country’s finalized, in terms of lists of proposed actions in irrigated area) is a key, complementary step in the the third stage, with their respective orders of modernization of the irrigation sector. For the priority, the National Bureau of Water Policy preparation and implementation of the program’s will select those that should be brought to technical, financial and institutional components, feasibility level. the highly positive experiences of Mexico may be utilized. The start-up of this priority, powerful tool should be considered an essential step to be carried out 6.6. Modernization of water resources in the short term, in order to integrate those management institutions and technologies. actions aimed at orienting WRM in Argentina. The widespread lack of structured data and 6.4 Aquifer protection and the supply of safe information on water resources leads to water to the population. inefficient management. It is essential to quickly overcome delays in designing and Aquifer protection measures must be urgently implementing national and provincial imposed. These aquifers constitute a strategic information systems for water resources reserve and a national asset that is being lost due management. This implies the systemization of to contamination. It is also a matter of protecting data on resources and management at national public health from the risks of contamination of and provincial level, as well as the updating and water supply sources, particularly in rural areas modernization of records on water rights and and small cities. Aquifer protection should uses. The systems will include advanced include technical, economic and institutional technologies for the integrated management of efforts. First, there is an urgent need for a resources, particularly those for aquifer program to cap abandoned wells that are simulation, aimed at their protection. The contaminating water tables in the Northern Oasis provincial implementation program will assign of Mendoza, and placing the very existence of the priority to provinces with the most environmental province’s socioeconomic life at risk. problems (Mendoza, San Juan, Catamarca, Tucumán, Córdoba and Santa Fe). There are various water management systems in the world Another urgent program is the protection of safe and in Latin America (especially Brazil and water supply sources—without risk of toxicity—for Mexico) that could be adapted pragmatically and the rural population and small cities. This realistically to the Argentine context, in order to consists of establishing protection perimeters make it quickly operational. around groundwater sources, principally in the provinces of Santa Fe, Córdoba, Buenos Aires, Catamarca, Mendoza, San Juan, La Pampa and  In the medium term (2002-2007) Jujuy. For cases of natural contamination with arsenic and/or fluorine, with higher than normal 6.7. Drastic reduction in water wastage. values, the feasibility of dual systems will be There are numerous reasons for wasted water in analyzed: water for drinking and cooking purified different drinking water and irrigation systems: using advanced technology, and water for other technological, economic, institutional and home uses with standard treatment. Finally, in educational-cultural. Therefore, a reduction in the areas with strong development of complementary amount of water wasted would require the irrigation (Central-Pampa Region and Buenos implementation of a multisectoral program. Aires), training and awareness will be undertaken Taking into account the ongoing decentralization to prevent widespread pollution, especially by and privatization in the sector, the program’s key 28 components should include: charges of Pollution reduction in rivers, lakes, reservoirs and sustainable fees for urban water services and aquifers would require a broad multisectoral water rights for irrigation and industrial use, the program, to be developed in agreement with strengthening of regulatory agencies in the national and provincial authorities, the private various water user sectors, and the education of sector and stakeholders. This would be the chance the various sectors of users about saving and to revitalize Basin Committees to achieve conserving water resources. consensus on policy instruments to combat water pollution: implementation of charges for dumping rights, establishment of municipal and industrial 6.8. Modernization of the irrigation sector. dumping regulations, management of solid waste, and financial mechanisms to help prevent The principal objective of a modernization pollution. Numerous, broad experiences may be program for the irrigation sector will consist of used; those of Brazil (São Paulo, Minas Gerais, returning its competitiveness, without which Rio de Janeiro and Paraná) and France could be efforts to improve efficiency in water resources particularly useful. management would be useless. The program would also be multisectoral and involve structural and non-structural components such as the training 6.11 Improvement of analytical basis for of farmers both in technology and management; management the organization of users’ associations; and financial structuring for credit to farmers. The An important support for the implementation of transfer of irrigation districts should be completed, the proposed action agenda will be the granting them greater administrative, financial and improvement of the analytical basis for institutional authority as well as the authority to set strengthening the process of formulating and collect sustainable water tariffs. Volumetric proposed actions. delivery and measurement 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 projects-partially financed by the World Bank-  Preparation of analytical criteria and would be useful in designing and implementing methodologies for rational selection of this program. projects.

 Application of technologies for the efficient 6.9. Rural and urban drainage. use of water in the wastewater treatment and Mitigation of the devastating effects of recurrent reutilization industry, suited to Argentina’s floods in rural areas will require a program to conditions. mobilize various policy instruments: introduction of the concept of soil use and conservation within  Survey and classification, based on remote the overall framework of land-use planning; sensing images, to define and stratify the proper management of endorreic basins; adjusting problems of salinization and waterlogging of rural roads infrastructure to mitigation needs; lands in the most affected provinces: using the positive experiences of rural road Mendoza, San Juan, Santiago del Estero and maintenance consortia; and establishing Río Negro. sustainable financial mechanisms for maintenance.  Prospective planning studies in selected basins, which could tentatively include the Urban drainage will also require the basins of the Salí-Dulce, the Desaguadero mobilization of various policy instruments such River and its tributaries, the Colorado River, as the modernization of urban legislation and the Bermejo River, the rivers of Córdoba, various regulations, the improvement of financial Mendoza, San Juan and La Pampa among mechanisms and the updating of technology and others, with a revision and updating of the institutional strengthening. quality classification of rivers and other receptors. 6.10. Water pollution control

29  Preparation of realistic standards for I Legal and regulatory aspects. Bill of drinking water and discharge of waste water. Law of Minimum Prerequisites, its applications and implications.  Regionalized economic value of water in Argentina. II Communication and participation of users in the process of discussing issues and Action agenda by regions and decision-making. provinces III Protection and management of groundwater resources. The following table tentatively proposes for discussion the geographic (national and IV Design and implementation of national provincial) scope of the principal proposed and provincial information systems for integrated actions and their respective implementation management of water resources. priorities (see Box 8). V Improvement of water and sanitation quality, and control of water pollution. Next stage in implementation VI Supply of safe water, without risk of toxicity, for the rural area and small urban areas. Above all, this document constitutes an instrument for facilitating the start-up of dialogue VII Modernization of irrigation and on the matter. The next step would consist of reclamation of salinated and waterlogged organizing discussion and dissemination irrigation lands. seminars in order to consolidate consensus on the action agenda, aimed at improving water VIII Flood management in urban and rural resources management. areas.

At future discussion meetings, it is suggested IX Integrated Management of Water that the following priority issues for discussion, Resources. consensus and future actions be debated with the principal actors in the area of water resources in X Economic Value of Water in Argentina. Argentina:

30 Box 8: Proposed Action Agenda

SCOPE OF ACTION AGENDA AT NATIONAL, REGIONAL AND PROVINCIAL LEVEL 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. 10. Water pollution control. 5. Land recovery (drainage) 11. Improvement of analytical basis for management. 6. Modernization of institutions and technologies for water resources management.

Recommended Application Actions Coverage 1 2 3 4 5 6 7 8 9 10 11

NATIONAL      LITORAL – Formosa    MESOPOTAMIA Chaco     Misiones    Corrientes    Santa Fe      Entre Ríos    CENTRAL – PAMPA Santiago del Estero      Córdoba         La Pampa       NUEVO CUYO – Jujuy    NORTHWEST Salta    Tucumán       Catamarca     La Rioja    San Juan        San Luis    Mendoza         GREATER BUENOS P. de Buenos Aires          AIRES - PAMPA HÚMEDA Federal District       COLORADO – RÍO Neuquén    NEGRO Río Negro     PATAGONIA SUR Chubut    Santa Cruz    Tierra del Fuego     First priority (2000)  Short Term (2000-2002)  Medium Term (2002-2007)

(Priority actions in the Provinces are suggestions and may be adjusted in specific cases.)

31 ANNEXES

I Annex 1: Provincial Grouping by Regionalization of Water Resources

REG PROVINCES REGIONAL CHARACTERISTICS PGB7 A

I Climate: Humid Precipitation: 1108 mm/year Regime: Rainy PGB: 42

M -FORMOSA Main Rivers: Paraná, Paraguay, Uruguay, Bermejo and Pilamayo % of national

T -CHACO Avg. Annual Flow: 18,360 m /sec Anl. Vol. 579 Km /year PGB: 14%

O -MISIONES Groundwater Use: Slightly Relevant Municipal: 20% Rural: 50% PGB per P

O -CORRIENTES Population Est. Year 2000: 7,585,000 Urban: 78% Rural: 22% inhab./year: S

E -SANTE FÉ Primary Water Resource Issues: Floods and Potable Water $5,873 M -ENTRE RIOS Primary Groundwater Issues: Aquifers are a Regional Extension of the Chaco Pampeano, —

L highly vulnerable to Contamination A R O T I L

A Climate: Semi-arid Precipitation: 550mm/year Regime: Rainy PGB: 27 P

M -SANTIAGO Main Rivers: Colorado, Salí Dulce, Primero, Segundo, Tercero, Cuarto and Quinto % of national

A DEL ESTERO Avg. Annual Flow: 178 m3/sec Anl. Vol. 6 Km3/year PGB: 9% P -CÓRDOBA PGB per — Groundwater Use: Relevant Municipal: 10% Rural: 50% L -LA PAMPA Population Est. Year 2000: 4.1 million Urban: 79% Rural: 21% inhab./year: A

R Primary Water Resource Issues: Water Quality, Contamination, Irrigation, Rural $6,883 T

N Floods, Rural Water Supply E

C Primary Groundwater Issues: Chaco Pampeano Aquifers In Between Mountains, Water Quality, Contamination

E Climate: Arid Precipitation: 331mm/year Regime: Rainy- PGB: 40 T

S -JUJUY Snowy % of national E

O -SALTA Main Rivers: Desagüadero, San Juan, Mendoza, Tunuyán, Diamante, Atuel and PGB: 13% R -TUCUMÁN Endorreica PGB per O 3 3 N -CATAMARCA Avg. Annual Flow: 321 m /sec Anl. Vol. 10 Km /year inhab./year:

— -LA RIOJA Groundwater Use: Very Relevant Municipal: 35% Rural: 65% $7,069 O -SAN JUAN Y Population Est. Year 2000: 6.1 million Urban: 75% Rural: 25%

U -SAN LUIS

C Primary Water Resource Issues: Groundwater Contamination, Irrigation Modernization, -MENDOZA

O Salinated Land V Primary Groundwater Issues: Discontinuous Aquifers Tightly Bound to Rivers Between E

U Mountains, Vulnerable to Salinization Due to Strong Evaporation N

A Climate: Humid Precipitation: 900mm/year Regime: Rainy PGB: 182 D -BUENOS Main Rivers: Paraná, Paraguay, Uruguay % of national E 3 3 M AIRES Avg. Annual Flow: 18,408 m /sec Anl. Vol. 580 Km /year PGB: 62% Ú -DIST. Groundwater Use: Relevant Municipal: 30% Rural: 70% PGB per H

. FEDERAL inhab./year:

P Population Est. Year 2000: 17.3 million Urban: 95% Rural: 5% $11,100 — Primary Water Resource Issues: Water Quality, Contamination of Groundwater S

E (natural, urban and agricultural) R

I Primary Groundwater Issues: Regional Aquifers of the Chaco Pampeano Highly A Vulnerable to Natural, Urban and Agricultural Contamination S N O E U B

O Climate: Arid Precipitation: 275mm/year Regime: Rainy- PGB: 9 R

G -NEUQUÉN Snowy % of national

E -RÍO NEGRO Main Rivers: Negro y Colorado PGB: 3% N 3 3 PGB per

O Avg. Annual Flow: 1,095 m /sec Anl. Vol. 35 Km /year Í inhab./year: R Groundwater Use: Slightly Relevant Municipal: 10% Rural: 20%

— Population Est. Year 2000: 1,180,000 Urban: 80% Rural: 20% $8,828 O

D Primary Water Resource Issues: Modernization Irrigation, Salinated Land, Water

A Supply Rural R

O Primary Groundwater Issues: Some Use of Groundwater L O C

7 PGB is in billions of US$. Per capita PGB is in US$/inhabitant/year. II PATAGONIA SUR FUEGO -TIERRA DEL -SANTA CRUZ -CINHABUT Modernization,Irrigation Salinization and Primary ResourceWater Issues: Population 2000: Est. Year Groundwater Use: Avg.Annual Flow: Main Rivers: Climate: Arid and Arid Cold Santa Cruz, Chubut, Senguer,Chico Santa Cruz, Chubut, Slightly Relevant Slightly 896 m 3 /sec 770,000 Potable for Populations,Irrigation Water Rural Precipitation: 216 and mm/year Gallegos Urban: Municipal: Anl.Vol. 87 28 % 10 Km Snowy Regime: % 3 /year Rural: Rural: Rainy- 13 20 % % III $13,584 inhab./year: PGB per PGB: %:of national PGB: 3% 9 ANNEX 2: INTERNATIONAL EXPERIENCE THAT MAY BE USEFUL TO ARGENTINA (See Annex G, Volume III) COUNTRY INTEGRATED MANAGEMENT WATER SERVICES WATER ADMINISTRATION ENVIRONMENTAL PROTECTION Mexico  Participation of users in recovery 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  Collection of irrigation fees effluent disposal permits. sustainable development. by users’ associations . Diagnostics 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 dumping 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 gradually projects and start up programs in a implementing the law. timely manner to develop institutional and users’ capacity. Brazil  Royalties generated by hydropower Beginning to charge for water  Examples of Ceará and Bahia  Environmental crimes not securable generation to maintain a national abstraction fees  São Paulo  (Some) national and state laws geared hydrometric network Tariffs generally adequate in  National Water Law (1997) and toward “polluter pays”.  Positive experiments with basin water companies; should creation of Secretariats of Water committtees improve rate of recovery and Resources at federal and state levels  Multisectoral water councils efficiency United States  Variety of state and/or regional Tariffs generally adequate  Mix of state administration and  Experiments with environmental irrigation districts, users’ associations Municipal and private markets markets, dumping tariffs, and and basin committees companies generally efficient  Increased private sector participation negotiated environmental agreements Use of technology for and consolidation of companies 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 For more information see Annex del Volume III.

IV ANNEX 3: CURRENT STATUS OF IRRIGATION IN ARGENTINA (data in ha)

Salinity and Province Surface Climate drainage (ha) Region problems w/Infrast. Irrigated Arid Semiarid Humid Rice (ha) BUENOS 136,086 174,630 75,983 0 98647 0 27,217 AIRES CATAMARC 46,220 27,600 22,400 5,200 0 0 0 A CHACO 0 6,350 0 0 50 6,300 0 CHUBUT 24,000 11,600 9,900 1,700 0 0 0 CÓRDOBA 70,919 104,926 28,270 26,000 50,656 0 0 CORRIENT 0 84,650 0 0 2,450 82,200 0 ES ENTRE 0 141,800 0 0 7,600 134,200 0 RÍOS FORMOSA 4,000 8,850 0 200 150 8,500 0 JUJUY 100,900 87,113 3,400 83,713 0 0 2,500 LA PAMPA 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 NEUQUÉN 20,906 21,330 21,330 0 0 0 2,500 RÍO 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 3,291 1,700 1,700 0 0 0 0 CRUZ 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 TUCUMÁN 130,030 64,500 4,500 60,000 0 0 4,000 Total 1,744,273 1,484,839 748,048 275,153 190,431 247,500 517,337

V ANNEX 4: Main Issues Covered by Provincial Legislation C REGION PROVINCE8 O INT WATER SERVICES WATER ADMINISTRATION ENVIRONMENTAL PROTECTION. D EG Autoridad de aguas E RA TE D MA NA GE ME NT Use9 Study, Flood Drinking Irriga Hy- Prio Det Assig Registra Water Confl Loss Preser Envi- Protection Basin project control water and tion10 dro- rity erm nmen tion policing ict of vaction 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- utio control polic- erosion city es ment) n11 ing control S S C Servi Reg P A J A (Law U U A ce ulac U D U D enforce P B N ión D M ment) 1. LITORAL F X X X X MESOPOTAMIA o r m o s a Chaco X X X X X X X X X X X X X Misiones X X X Corrientes X X X X X X X X X X X X X X X X Santa Fe X X X Entre Ríos 2. CENTRAL PAMPA Sgo. del Estero X X X X X X X X Córdoba X X X X 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 Salta X X X X X X X X X X X X X X X X X X X X Tucumán X X X X X X X X X X X X X Catamarca X X X X X X X X X X X X X La Rioja X X X X X X X X X X X X X X San Juan X X X X X X X X X X X X X San Luis X X X X X Mendoza X X X X X X X X X X X X X X X X X X X X

8 Information was drawn from documents that contained legal quotes and provincial legislation that was accessible. Consequently, gaps recorded do not necessarily indicate a lack of regulation on the matter. 9 SUP= Surface water. SUB= Groundwater. CAN= Canon for water resource use 10 PU= Participation by Users. AD= Adjustment of lands for irrigation. 11 Conflict resolution: JUD: Ordinary legal proceedings. ADM: Administrative water justice. VI 4. GBA PAMPA P.de Bs. As. X X X X X X X X X X X HÚMEDA Distrito Federal 5. COLORADO RÍO Neuquén X X X X X X X X X X X X X X NEGRO Río Negro X X X X X X X X X X X X X X X X X X 6. PATAGONIA SUR Chubut X X X X X X X X X X X X Santa Cruz x X X Tierra del Fuego

VII ANNEX 5: REGIONALIZATION OF KEY ISSUES, GAPS AND POLICY OPTIONS

. REGIÓN PROVINCE KEY ISSUES AND DEFIENCIES 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 tilling, …) 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 dumping as a management tool Entre Ríos CENTRAL – Santiago d. Estero  Abundant water, but rivers, lakes and  Lack of effective pollution control  Evaluate importation of water against contamination Córdoba aquifers polluted (from municipal dumping policies  Title, register and charge for uses and dumping, as a PAMPA La Pampa and from metal-mechanical, automotive, management tool. 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 salinated or waterlogged, and makes it difficult to compete in  Rehabilitate idle infrastructure and modernize irrigation Tucumán obsolete technology. international markets.  Launch agricultural modernization 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 quality and quantity of surface quality of surface and ground water for purposes of land-use CUYO – San Juan  Pollution from agriculture, mining, oil and ground water 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 Mendoza  Non-use of melted ice because recharging is water and associated natural  Induce recharging with small dams NORTH- not induced resources.  Selectively cap wells WEST  Title, register and charge for uses and dumping, as a management tool

VIII ANNEX 5: REGIONALIZATION OF KEY ISSUES, GAPS AND POLICY OPTIONS

. 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: HÚMEDA  488 l/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 Neuquén  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 modernize irrigation Río Negro  Irrigation in higher zoens with problems international markets  Launch an agricultural modernization program. RÍO NEGRO similar to those of Mendoza. PATAGONIA Chubut  Arid, cold climate with continental ice sheets  Lack of legislation and actions at altitudes dealing with land-use planning SUR  Pollution from mining and petroleum Santa Cruz  Low population

Tierra del Fuego

IX ANNEX 6a. PROPOSED ACTION PROGRAM

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 careless protection  Outdated technology for the analysis  Emergency program to cap contaminating wells in Mendoza. AND  Restore and conserve groundwater which and management of aquifers and  Programs to implement protection perimeters around aquifers reserved for MANAGEMENT OF is a national asset and prinicpal source of their integration in the overall 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 IMPLEMENTATIO communication and coordination. referencing (SIG). N OF NATIONAL  Fragile information support for  Implementation of system at national and provincial level, beginning with AND PROVINCIAL understanding of water systems and Mendoza, San Juan, Catamarca, Tucumán, Córdoba and Santa Fe. WATER decision-making. RESOURCES 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  Political strength of provinces preparation of a water resources management Master Plan. WATER  Opportunity to value water as an  Expand coverage of flood warning systems RESOURCES economic good and improve  Support the preparation of the Law of Minimum Prerequisites for Water MANAGEMENT economic efficiency of water Resources, while adjusting provincial laws in a group of provinces that resource utilization. share serious problems in a basin.  Opportunity to carry out joint  Support the simulation, on paper, of the implementation of draft national management of quantity and quality and provincial laws to test their feasibility and establish programs to  Planning of basin management develop necessary capacities.  Prospective view and planning  Establish systems to expedite, register and monitor concession titles and  Modernization, updating and use of dumping permits, as well as fees charged for both, as a water resources Registry as a management tool management tool and an essential requirement for promoting the water  Experience of Mexico rights market.  Creation and/or strengthening of 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. compliance.  Recover and protect sources of supply. IMPROVEMENT  Anarchy in solid waste management.  Develop an ESW to propose solutions to the solid waste problem. OF WATER  Industrial pollution  Implement pollution charges based on polllution load indices, by QUALITY AND productive or service category. SANITATION

X C: Short-term (2000 - 2004), M: Medium-term (2005 – 2010, L: Long-term (After 2010)

XI ANNEX 6b. PROPOSED ACTION PROGRAM

PRIORITY OBJECTIVES KEY ISSUES POLICY INSTRUMENTS ACTIONS

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 areas.  Good-quality supply sources are  Water: Water for drinking and cooking purified with membrane “SAFE WATER” distant; groundwater contaminated technology. For other uses water filtered and disinfected. “FOR RURAL with pathogens, arsenic, fluorine,  Sanitation: AREAS AND nitrates and salt.  Utilization of “dual” systems SMALL CITIES  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 in situ drainage. VI. RECOVERY OF profitability.  584,000 ha salinated  Carry out through public works only essential components such as SALINATED AND  Overlapping of both problems large collectors. WATERLOGGED  Low productivity  Promote innovative financial mechanisms; for example, subsidize the 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  Learn 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.  Outdated irrigation of fruit trees  Use the principle of inherent rights to adjust and modernize the titling MODERNIZATION Inter-sectoral reallocation of surplus. using furrows. and registration of users. OF IRRIGATION  Water rights inherent to land  Promote sustainable tariffs and volumetric measurement. ownership.  Modernize 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. MANAGEMENT IN  Soil management in micro-  Incorporate the above concept in the Users’ Law for Soil RURAL AREAS catchments with closed valleys, Conservation, which is in the process of being modified. without considering risk factors for  Introduce sustainable financial mechanisms for maintenance. use of natural potential  Establish adequate management of endorreic basins.  Adjust rural roads.

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