DRR-Team Scoping Mission Report Ecuador version Dutch water sector Technical assistance on early warning systems and flood risk management in relation to El Niño and advice on specific concerns near Ecuadorian/ Peruvian border. DRR-Team Scoping Mission Report Ecuador version Dutch water sector i June 10th 2016 DRR-Team Scoping Mission Report version Dutch water sector Ecuador DRR-Team Scoping Mission Report Ecuador version Dutch water sector ii DRR-TEAM [Ecuador] Document title DRR-Team Scoping Mission Report Ecuador version Dutch water sector Status Final Date June 10th 2016 Project name Technical assistance on early warning systems and flood risk management in relation to El Niño and advice on specific concerns near Ecuadorian/ Peruvian border. Reference DRR16PE02 Drafted by Mónica Altamirano, Jana Steenbergen, Otto de Keijzer, Rutger Perdon Checked by Gilberto Zambrano Date/initials check June 10th 2016 Approved by Arjan Braamskamp DRR-Team Scoping Mission Report Ecuador version Dutch water sector iii EXECUTIVE SUMMARY Introduction Peru and Ecuador have always been vulnerable to water-related disasters, like floods, water scarcity, and water pollution. Like many countries across the globe, Peru and Ecuador are affected by the consequences of the recurrent natural phenomenon El Niño and La Niña. El Niño and la Niña occur both in the Pacific Ocean in front of the coasts of both countries. In Ecuador and Peru El Niño can cause strong precipitations in the coastal area, in contrary to e.g. Colombia where El Niño is causing a very strong drought. El Niño 2015/2016 was expected to be the heaviest since 1997/1998 (however note that during February 2016 it became evident that the eastern Pacific Niño (Niño-1,2) declined causing much less impact than expected. The consequences in the years of 1997/1998 were devastating for Peru and Ecuador. Estimated damages in Peru were around € 3,250 million, of which 46.4 percent damage to agriculture fisheries, mining, industry and commerce, and 39.7 percent damage to infrastructure. In Ecuador estimated damages were estimated at USD 2,882 million. For this reason Peruvian government already announced to have reserved € 846 million for the consequences of El Niño 2015/2016. In Ecuador large emergency funds were allocated but more long- term investments on infrastructural works were made in the years before. An official request of the Peruvian Vice-minister for Agriculture for support of the DRR- Team on flood risk management was sent to the Dutch Ambassador in Lima on the 24th of November 2015. On the 6th of January an official request was sent to the Dutch Ambassador in Lima by the Ecuadorian Minister for Risk Reduction to ask the DRR -Team to look into integrated river management issues in the province of El Oro. Based on the letters which were discussed between the embassy in Lima and the Autoridad Nacional de Agua (ANA) in Peru and Ministry of Risk In Ecuador more specifically the team was asked to: . provide Technical Assistance (TA) and recommendations on integrated river management issues in the province of El Oro in Ecuador . assess the current early warning systems in Peru, . provide Technical Assistance (TA) and recommendations on flood risk management in the following areas: Río Huallaga, Río Piura, Laguna la Niña, Presa Poechos Dam and Río Tumbes in Peru, . identify possibilities for financing. Approach during the mission After studying a selection of provided literature from the Pacific Disaster Center about El Niño in general and Peru’s vulnerability to this phenomenon and from ANA about the different focus areas (Chosica, Río Hualaga, Ríos Chira y Piura and the Río Tumbes) the team started their mission. For Ecuador no case-specific literature was provided in advance but the general El Niño literature also gave insight in the Ecuadorian situation, besides that one of the team members live and works in Ecuador and therefore could provide the team with valuable information. DRR-Team Scoping Mission Report Ecuador version Dutch water sector iv In Ecuador the program started on Sunday with a briefing with a representative of the Zone 7 (which includes the province of El Oro) of the Ministry of Risk Management. Expectations and the locations to visit were discussed together, based on the questions of the Ministry and the added value the Netherlands could bring. The next two days were filled with site visits in the watershed of the Río Zarumilla (Chacras, Huaquillas, Santa Rosa) and the island of Jambelí. Also the city of Guayaquil was visited, and meetings were held with the Governor of el Oro, Prefectura and the Municipality. The details of the agenda are provided in Annex D Main results The main results are threefold: Knowledge Sharing During the mission through the discussions with the Ministry of Risk and other stakeholders the DRR-Team was able to disseminate Dutch water expertise and help on the spot. Also in this report in chapter 3 and 4 several concrete recommendations are shared. Ecuador can continue to build on these recommendations with or without Dutch help. Also potential follow up steps for future collaboration have been defined. Insight The mission helped the DRR-Team to obtain a rough understanding of the Ecuadorian context (institutional, financial and technical) with regard to water management issues. This increased understanding can serve as a base for further collaboration between the two countries on specific items on which the 2 countries agree. In the weeks after the mission some first ideas for further collaboration have been shared between the DRR- Team/Dutch Embassy and the Ministry of Risk Management and Senagua (Secretaria Nacional del Agua. Added value Dutch water expertise It became clear that the Dutch water sector (public and private) has much to offer with regard to the challenges and priorities Ecuador is dealing with. Seven follow up actions have been selected on which Dutch expertise may be helpful (paragraph 4.6.1). These actions are sector wide and offer opportunities to Ecuadorian and Dutch public, private and knowledge sector. The DRR-Team also included the analyses of the financial expert showing a first scan on how and with whom funding of these actions could be arranged (paragraph 4.6.2). The Netherlands would be more than happy to continue talks with Ecuador to see where Dutch expertise may be helpful to successfully implement one or several actions. Follow up Based on the identified opportunities and funding potential follow up actions for the Dutch sector have been elaborated in chapter 5. Most opportunities would need a considerate effort to initiate them as projects will need to be structured and finance or commitment to finance still needs to be arranged. For more details see chapter 5. DRR-Team Scoping Mission Report Ecuador version Dutch water sector v CONTENTS EXECUTIVE SUMMARY IV Introduction iv Approach during the mission iv Main results v Asociación Público-Privada viii Caja Corporación Andina de Fomento, Banco de Desarrollo Latinoamericano viii 1 BACKGROUND 9 1.1 General introduction 9 1.2 Extreme event 9 1.3 Location specific 12 1.3.1 Río Zarumilla: Chacras/ Huaquillas/ Santa Rosa 12 1.3.2 Jambelí 15 1.3.3 Guayaquil 16 2 DRR-TEAM MISSION 17 2.1 Introduction 17 2.2 Scope of Work 18 2.3 Approach 18 2.4 Objectives 18 3 FINDINGS AND IDENTIFIED NEEDS 20 3.1 Introduction 20 3.2 Financial setting 20 3.2.1 Findings per financing stream 20 3.3 Location specific 22 3.3.1 Río Zarumilla: Chacras/ Huaquillas/ Santa Rosa 22 3.3.2 Jambelí 23 3.3.3 Guayaquil 25 3.4 General findings 26 4 RECOMMENDATIONS ON MEASURES 27 4.1 Introduction 27 4.2 Financial setting 27 4.3 Location specific 27 DRR-Team Scoping Mission Report Ecuador version Dutch water sector vi 4.3.1 Río Zarumilla: Chacras/ Huaquillas/ Santa Rosa 27 4.3.2 Jambelí 28 4.3.3 Guayaquil 28 4.4 General recommendations 29 4.5 Priorities Ecuador for Dutch technical assistance 29 4.6 Added value of Dutch expertise 30 4.6.1 Location specific 30 Río Zarumilla: Chacras/ Huaquillas/ Santa Rosa 30 4.6.2 Suggestions for finance 31 5 OPPORTUNITIES NL 32 5.1 Best opportunities within the Ecuadorian public investment system 32 5.2 Follow up suggestions for assistance on priorities/ steps for implementation 32 ANNEX A – DRR-TEAM 33 ANNEX B – TEAM MEMBERS 34 ANNEX C – TERMS OF REFERENCE 36 ANNEX D – MISSION PROGRAMME 37 ANNEX E - FINANCINGOPPORTUNITIES ECUADOR 39 DRR-Team Scoping Mission Report Ecuador version Dutch water sector vii LIST OF ABBREVIATIONS DRR Disaster Risk Reduction ANA Autoridad Nacional de Agua (Perú) IWRM Integrated Water Resource Management WB World Bank SENAMHI Servicio Nacional de Meteorología e Hidrología (Perú) SGR Secretaría General de Riesgos SENAGUA Secretaría Nacional del Agua U.S NOAA United States National Oceanic and Atmospheric Administration GDP Gross domestic product FEN Fenómeno de El Niño UNISDR The United Nations Office for Disaster Risk Reduction FAN Fondo Ambiental Nacional/ National Environmental Fund of Ecuador GEF Global Environmental Facility SNAP Ecuatorian National System of Protected Areas TA Technical Assistance APP Asociación Público-Privada CAF Caja Corporación Andina de Fomento, Banco de Desarrollo Latinoamericano ICLEI International Council for Local Environmental Initiatives DRR-Team Scoping Mission Report Ecuador version Dutch water sector viii 1 BACKGROUND 1.1 General introduction Peru and Ecuador have always been vulnerable to water-related disasters, like floods, water scarcity, and water pollution. Like many countries across the globe, Peru and Ecuador are affected by the consequences of the recurrent natural phenomenon El Niño and La Niña. El Niño and la Niña occur both in the Pacific Ocean in front of the coasts of both countries.