Our Work in Peru
Our Role
The 2030 WRG is playing a key role 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.
2030 WRG in Peru is a Multi-stakeholder Platform with high-level representation that enables: 1) high-level discussion on water policies; 2) multi-stakeholder dialogue around water issues and other related key topics; 3) active participation of the private sector willing to take a more active role on water resources management and security; and, 4) generation of programs and financing for activities that promote private sector participation on water initiatives.
In 2019, 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 water governance policy considerations, regulations, private sector action and water stewardship, and social impact and community participation, , 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.
Results
Works for Taxes
Created in Peru in 2008, Works for Taxes is an innovative mechanism to accelerate 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.
In year 2014, 2030 WRG provided technical assistance to the Ministry of Construction and Sanitation to improve the regulation of the mechanism of Works for Taxes, which brought up a successful promotion of Works for Taxes with 14 million dollars in projects and a portfolio of $400 million dollars for projects in water and sanitation throughout the country.
In order to keep promoting the correct implementation of water and sanitation infrastructure projects through this collaborative mechanism, 2030 WRG recently promoted a Dialogue Table between the different national authorities involved in the mechanism with the aim to improve the governance and facilitate clear government policies in economic and social aspects to provide stability and predictability for the private sector companies. A Second Dialogue Table was also promoted with private companies which have actively executed projects through this mechanism. This table aimed to exchange experiences on the main barriers they have overcome, increase awareness, and suggest solutions to the national competent authorities.
Groundwater Management and Monitoring Services Tariff
The 2030 WRG supported the National Authority of Wastewater Services (SUNASS) to develop a groundwater abstraction tariff for industrial users and assisted the National Water Authority (ANA) in developing 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).
After successfully helping SUNASS to develop the underground tariff for industrial users in the previous years, 2030 WRG has also enabled on June 2019, the creation of a neutral space for dialogue and evaluation of the sustainable governance for groundwater between private companies that are currently using groundwater for industrial activities and the national competent authorities involved: the National Authority of Water, SUNASS (National Superintendence of water and sanitation services), SEDAPAL (Metropolitan Area of Lima´s water utility company), Minister of Housing and Sanitation and Minister of Environment. The purpose of the working space is to analyze and evaluate the current methodology after 4 years of its development and the results achieved up to date in order to improve the current regulation and enable a neutral constructive dialogue between private sector users and the authorities.
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.
Water Responsible Companies: The Blue Certificate
The 2030 WRG and its partners created the Blue Certificate, an initiative led by Peru’s National Water Authority (ANA in Spanish), 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. There are already 15 companies in the process of certification. Out of these, six have already achieves this recognition.
As for today, there are already 15 companies in the process of certification for the Blue Certificate, which is a recognition granted by the National Water Authority to private Companies that assess and reduce the water footprint of their process. From these 15 companies, 8 companies have already achieved this recognition. As a result, up to date, ANA is expecting to save 3,350 cubic meter of water and reuse 122,000 cubic meters of water per year. So far, more than 11.2 million dollars 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 in 2.8 million dollars that benefit 12,404 persons directly and 24,824 indirectly have been presented through projects of: i) efficient use of domestic water; ii) improvement of rural irrigation efficiency; iii) reuse of wastewater in public spaces; and; iv) promotion of water culture.
Shared Value Platform
The 2030 WRG co-leads the Shared Value Platform with ProNatura 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 influence has the potential to generate a more sustainable economy. The 2030 WRG will help organize a Steering Committee with high-level representatives of the Executive Branch, internationally renowned experts on sustainability, and Peruvian leaders for this specific initiative of the MSP.
An MOU with one of the biggest copper companies of the country has been signed to start working together and the setting up of a SVP will ensure, on one hand, minimum infrastructure and basic needs coverage to local population where access to water and sanitation is a top priority and, on the other hand, the development of productive chains in these areas of influence to generate sustainable economies not dependent on the mining company. 2030WRG will also create and run a Steering Committee which will be formed by high level representatives of the Executive Branch, International renowned experts on Sustainability and Peruvian leaders for this specific project.
Adaptation to climate change and green infrastructure
2030 WRG is working along with SEDAPAL (Lima Water Utility company), NGO Forest Trends, World Bank, TNC and other Peru partners on promoting green infrastructure and nature-based solutions among private sector, international cooperation and Government.
Under its Natural Infrastructure Working Group, 2030 WRG created a Dialogue Platform to discuss Sedapal’ s strategy for the investment of a Fund of almost USD 22 million (PER 73.5 million) for the execution of green infrastructure projects in Lima city. Representatives from SEDAPAL led by his Chairman and representatives of the main public stakeholders in water management of the country such as SUNASS, ANA, and Ministry of Housing and Sanitation, as well as representatives of Forest Trends organization and the World Bank, are part of this Platform. The projects will aim to reduce the clean water access gap in communities from the middle and upper basins of the main surrounding rivers in Lima. 2030 WRG is the public-private dialogue platform where the guidelines and best practices for this process are been discussed. It is also articulating the creation of partnerships in order to promote private sector participation. The funds, collected through the Remuneration Mechanisms for Ecosystem Services stablished in 2015, will allow the implementation of green infrastructure projects including lagoons, water harvesting, reforestation, terracing, and non-conventional water solution initiatives to reach those communities that has not access to water and sanitation in the neighboring areas of Lima, the Peruvian capital.
