The 2030 WRG is playing a key role both in supporting decision-makers and relevant stakeholders in creating the right incentives for sustainable water use, while promoting wide alliances to recognize that water is a limiting factor but also an opportunity for development in Peru.
In 2018, the 2030 WRG continued to convene transparent and high-level participation from government, private sector, and civil society in ongoing dialogue on a range of topics. These included policy considerations, private sector action and water stewardship, social impact and community participation, and financial incentives, among many others.Due to the participation of high-level government stakeholders and decision-makers from various ministries, a range of topics can be tabled and discussed beyond the scope of water, truly making the Multi-Stakeholder Platform (MSP) a unique cross-sectoral platform.
Works for Taxes
Created in Peru in 2008, Works for Taxes is an innovative approach to accelerating infrastructure investment. It allows private firms to “pay” their income taxes in advance through the execution of public works projects. By accepting infrastructure projects in lieu of future taxes, national, regional, and local governments can forego mobilization of public funds and reduce the burden on government budgets, as the private sector assumes the upfront costs and management of new infrastructure projects. The mechanism’s success derives from its ability to align public and private sector incentives for better quality projects and more efficient use of funds. Works for Taxes has great potential for replication in other emerging market countries with similar obstacles to infrastructure investment. Colombia enacted a law to launch Works for Taxes inNovember 2017. Within a month, 28 firms related to food, beverages, insurance, banking, tax auditing, cement, basic sanitation, legal services, mining, and oil have expressed interest in participating. The government plans to prioritize investments in water, sanitation, energy, health,education, and roads.In 2018, theTaxes for Projects in Peru mobilized US$ 14 million in projects and has a total investment portfolio of US$ 400 million for projects in water and sanitation.
Groundwater Management and Monitoring Services Tariff
The 2030 WRG supported the National Authority of Wastewater Services(SUNASS) to develop agroundwater abstraction tariff for industrial users andassistedthe National Water Authority (ANA) indeveloping a prioritization investment system. The 2030 WRG has supported SUNASS, the water services regulator responsible for determining the tariff to be levied by water utilities, in developing the methodology for the design and implementation of the tariff system.
Through internalizing the opportunity cost of groundwater and making non-agricultural groundwater users accountable for their water use, the incentive pricing features provide a means to reduce pressures on groundwater-dependent ecosystems (such as wetlands in the valleys of rivers Rímac and Chillón). It also helps mitigate pressures over surface water resources, using groundwater as a buffer resource especially in the Pacific watersheds (with 1.8% of surface runoff, more than 60% of the country’s population, and 80% of the national GDP).
Although there are examples of groundwater tariffs in other countries, the Peruvian system can be considered unique because of the way the tariff structure is designed; it links to groundwater management plans, reflecting a best practice that could potentially be replicated in other countries.
The 2030 WRG and its partners created the Blue Certificate, an initiative led by Peru’s ANA, to encourage companies to assess the water footprint of their processes and become water-responsible companies. Companies are awarded a certificate if they fulfill three criteria: (1) develop a Water Footprint Assessment following ISO 14046; (2) commit and accomplish water footprint reductions; and (3) set out and implement a program of shared value with the communities in the watersheds in which they work. In 2018, UNACEM, Nestlé, and Buenaventura y Celepsawere awarded Blue Certificates with an additional six companies to follow: Camposol, Fenix Power, Esmeralda Corp., CITE-Ica, Ferreycorp, Agrícola Cerro Prieto, and Southern Peru Copper Corporation.
The ANA is expecting to save 79,000 m³ of water and to reuse 137,000 m³ of water per year as a result. So far, more than $1.3 million will be invested by the companies involved in the certification process, and 30,000 citizens are expected to benefit from these investments. Shared value projects valued at $2.8 million will directly benefit 9,233 persons and 20,000 indirectly through the efficient use of domestic water, the improvement of rural irrigation efficiency, the reuse of wastewater in public spaces, as well as a positive promotion of a sustainable water culture.
Shared Value Platform
The 2030 WRG co-leads the Shared Value Platform withProNatura and the International Finance Corporation. In Peru, more than 50% of potential projects in the mining sector are paralyzed and associated with socio-environmental issues, particularly related to water resources management. The establishment of such a platform will ensure minimum infrastructure and basic needs coverage for the local population where access to water and sanitation is a top priority. The development of productivity chains in these areas of influencehas the potential to generate a more sustainable economy. The 2030WRG will helporganize a Steering Committeewith high-level representatives of the Executive Branch, internationally renowned experts on sustainability, and Peruvian leaders for this specific initiative of the MSP.
The 2030 Water Resources Group (2030 WRG) is a public, private, civil society partnership hosted by the World Bank Group. The partnership supports country-level collaboration designed to unite diverse groups with a common interest in the sustainable management of water resources.
Our global partners include bilateral agencies and governments (Swiss Development Cooperation, Swedish Development Cooperation, the governments of Hungary and Israel), private companies (Nestlé, PepsiCo, Coca-Cola, Dow Chemical, Ab InBev), development banks (IFC, World Bank, African Development Bank, Inter-American Development Bank), INGOs and IGPs (UNDP, GGGI, GWP, the World Economic Forum, BRAC and IUCN). The 2030 WRG was launched in 2008 at the World Economic Forum and has been hosted by The World Bank Group since 2012.