Presented at the 12th meeting of the OECD Water Governance Initiative, on 20 - 21 June, 2019 in Berlin, Germany

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Towards improved water governance in Peru
12th Meeting of the OECD Water Gobernance Initiative
Luis Marino Nava
Director General of Environmental Economics and Finance
Ministry of Environment
20. June 2019, Berlin - Germany

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Content
1. Peruvian background
2. Objective of the WPD with Peru
3. Output of the WPD with Peru
4. Multi-actor process of the WPD with Peru
5. OCDE First mission

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Peruvian Sea
Thanks to the outcrop of deep waters of the
Peruvian coast, there is a great diversity of fish
resources. Fishing is used for the fishmeal, fish
oil industry and for human consumption.
Glaciers
Water source that regulates water supply,
both human consumption and generation of
energy. The Peruvian Andes concentrate 71%
of the world's tropical glaciers.
Mountains
Provide water, energy, food, mineral resources
and ecosystem services such as soil and cloud
formation or climate regulation. They have a
great cultural and spiritual importance.
Forests
61% of the peruvian territory is covered
by forests. Their deforestation is the
main GHG emisions source in the
country.
Population and territory
1. Peruvian background
84 of the 104 life zones of the planet, are found in Peru
Desertification
Drought
Landslides
Glacier shrink
Sea level rise
Sea temperature
Frost
Floods
Plagues
Cold waves
Climate change risks
Urban area
• Almost 79% of Peruvians live in urban areas.
• The country's largest cities are located on
the coast, where the availability of water is
reduced and, at the same time, the demand
for services grows.
• 15.7% of the urban population lives in
conditions of poverty.
Rural area
• It houses 21% of the population and 97% of the
Agricultural Units, where 10% of Peruvians work.
• Lower crop yields would affect rural incomes and food
security. In rural areas, poverty reaches 46%.
Jungle
Highlands
Coastal

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Source of water Data
Glaciers
Total: 3 044 glaciers cover 2041 km2
Pacific: 1 129 (cover 878 km2)
Amazon: 1 824 (cover 1 113 km2)
Titicaca: 91 (cover 50 km2)
Lakes and Lagoons
Total: 12201
Pacific: 3896
Amazon: 7441
Titicaca: 841
Basins: 23
Rivers 1007
Aquifers
Pacific slope: 2700 Hm3 (reserva
aprovechable)
Atlantic and Titicaca slopes are not
determined
Source: Water Resources National Policy and Strategy, ANA. 2015
1. Peruvian background: water resources
Amazon hydrographic
region
Titicaca hydrographic
region
Pacific hydrographic
region
62 Hidro unit
84 Hidro unit
13 Hidro unit
And 34 transboundary watershed with:
Ecuador, Colombia, Brasil, Bolivia y Chile.
 03 main water slopes:
 Atlantic: 97,3 % water resources, 33,5 %
population.
 Pacific: 1,76 % water resources, 62,53 %
population (Year 2013).
 Titicaca: 0,6 % water reources, 4,2 %
population.
 2018, Pacific slop: 2% water resources, 66%
population.
 Since 2011, basins management approach. Basin
Water Resources Councils: 29 planned, 12 done
and 03 in process to enter into force.
In total: 159 hydrographic units
Water supply: 1 935 621 hm3/year
Source: National Water Authority (ANA)

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Water shortage
The area most prone to drought:
the southern highlands of Peru.
1.5 million people directly
affected that live above 3 500 m.
70% of the EAP in these places is
dedicated to agriculture and
livestock.
80% are grazing land with little
cropland.
14.5 millions hectares of
degraded ecosystems*
Flood
Not all floods or heavy rains can
be attributed to the El Niño
phenomenon. Floods caused by
human activity occur on river
floodplains, mostly in urban
and/or agricultural areas.
Coast: rivers overflow with
hyper-concentrated flows,
causing erosion and
sedimentation.
Highlands, overflows of Andean
rivers, landslides caused by
excessive rains, earthquakes or
glacial accidents.
High concentrations of solids
produce overload in treatment
systems, increasing treatment
costs.
Inadequate water
quality
Interferes with the use of water
resources: irrigation, animal
consumption, water production
for human consumption,
ecosystem services, etc.,
causing socio-environmental
conflicts between basin
stakeholders (water users).
41 hydrographic units exceed
the water EQS, caused by the
dumping of untreated
wastewater, inadequate
management of solid waste,
environmental liabilities,
informal and illegal mining.
Risk of undermining the
resilience of freshwater
systems
Anthropocentric approach:
"water resources" suitable for
human uses without considering
health or integrality of
ecosystems.
Knowledge scarcity about the
diversity of species that make
up aquatic ecosystems, as a
basis for water bodies
resilience.
Since 1970 Peru has lost 40% of
its glacier surface, affecting
hydrological regimes that
depend on their contributions.
Access to drinking water
and sanitation
Urban area: plants for the
production of drinking water,
whose level of treatment is in
most cases of secondary level.
Rural areas, the level is primary
with simple disinfection.
In some parts of the country,
water is consumed directly,
without treatment.
1. Peruvian background: key water risks
Sources:
- OECD, 2016. Perú Environmental Performance Review.
- National Water Authority, 2015. Water Resources National Plan.
- MINAM Multiannual Program for Investments. Available in http://www.minam.gob.pe/wp-content/uploads/2018/04/RM_N-151-2018-MINAM.pdf .

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2014
2015
2016
2017 2018
1. Peruvian background: Commitments
Country Program
Peru-OECD
EPR Recommendations N° 44:
“Consolidate interinstitutional
co-ordination forums such as the
National Water Resource
Management System, the board
of the National Water Authority
and the watershed boards, and
their ties with the National
Environmental Management
System.”
Peruvian National Water
Authority integrates WGI
OECD Water Governance Indicator
Framework: Peru
ToR for OECD/PERU
National Policy Dialogue On
Water Governance
 Peruvian Budget Law for Public Sector,
authorizes MINAM to carry out WPD
 Dic. 2018: Starts WPD in Peru
 Peru 43th member of the
OECD Green Growth
Declaration
 Nationally Determined
Contributions

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1. Peruvian background: policy framework
Law N° 29338, Water
Resources Act
2004 2005 2008 2009 2011 2015 2018
Law N° 28245, National
Framework Law on
Environmental
Management System
Law N° 28611, General
Environmental Act
Creation of the Ministry
of Environment (MINAM)
Creation of the National
Water Authority (ANA)
Creation of the National
Water Resource
Management System
National Environmental
Policy
D.S. N° 012-2009-MINAM
National Policy and
Strategy for Water
Resources
Water Resources
National Plan
Climate Change National
Strategy
National Development
Plan: Bicentennial Plan
Peru towards 2021
General Government
Policy towards 2021
Framework Law on
Climate Change
Competitiveness and
Productivity National
Policy
NDC implementation
roadmap
Includes measures linked to
population, farming and energy
usage, and the hydro resources
integrated management

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Main concerns
 Resource availability
 Water quality
 Water supply and sanitation
 Water-related disasters
 Water impact: social,
environment, economic.
Government Decision
 Carry out a dialogue on Peruvian water
governance systems to track and analyze
progress and performance over time and to
map the concrete actions needed to bridge
gaps with the commitment of multi-
stakeholders (public, private, social society).
Window of opportunity to:
 Strengthen multi-level governance, to set water as a pillar for sustainable
national development
 Design and implement robust economic instruments to achieve objectives of
Peru's water policies
 Reinforce the regulatory frameworks for water resources management and
services delivery.
Instruments
LocalNational
2. Objective of the WPD with Peru

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1. Diagnosing and
bridging
multilevel
governance gaps
2. Economic
instruments to
achieve broader
water policy
objectives
3. Improving the
regulatory
framework for
water resource
management and
service deliver
4. Case studies
(governance
framework, economic
and social
consequences, options
for the management of
the revenues, tailor
recommendations)
5. Action plan:
policy
recommendations
and key stakeholders
- short/medium/long term actions,
- indicators to track progress in implementation,
- relevant international best practices, and
- who can do what within the country, including public, private, academic and not-for-profit sectors.
3. Output of the WPD with Peru
OECD Report “Water Governance in Peru”

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4. Multi-actor process of the WPD with Peru
15 months approx.
• The OECD meets with stakeholders in
order to generate dialogue and
consensus regarding the diagnosis and
future recommendations.
• Completed

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5. OECD First mission
The OECD conducted interviews in order to
gather information regarding:
1. Situation of the water resources in Peru
2. Existing economic instruments
3. Good practices that contributes to good
governance or management
4. Main governance challenges
Entities Convened Interviewed
Public Sector – Central Gov.* 28 25
Public Sector – Regional and local
government unions
3 1
EPS (ANEPSSA y SEDAPAL) 2 2
Private sector 14 11
Development Banks 3 1
Dvelopment Agencies 10 7
International Organizations 11 6
ONG 8 5
Academics and research center 10 2
TOTAL 87 60
70% of the entities convened
participated, interviewing 140
representatives
* Includes Basin Water Resources Councils and Water Administrative Authorities (CRHC
CHIRILU, CRHC Quilca-Chili, CRHC Jequetepeque Zaña", AAA Jequetepeque-Zarumilla, AAA
Chaparra-Chincha")

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Key outcomes for the peruvian government:
Public management
Operationalization
Tariffss and services
providers sustainability
• Law 29338, Water Resources Act, 2009. New model of institutional management and organization for
IWRM.
• Basin Water Resources Councils (CRHC) set as multi-actor and multilevel articulation instances.
• Fragmentation, coordination and articulation gaps persist: Govt. National, Regional, Local, CRHC, users,
among others.
• Need to link national planning versus planning in the basin.
• Of the 6 CRHC with water resources management plans, they have not been fully implemented. This
planning is not prioritized.
• Its operationalization lacks the political commitment and provision of necessary resources.
• Progress in the establishment of tariffs and economic retributions (for example, groundwater). Low
value allocation affects the financial sustainability of service providers.
• Dependence of the public budget.
• Review investment approaches that leverage and expand funding sources.
5. OECD First mission
Quality of information
• Platforms for the information exchange are mostly set at the national level, pending at basin level.
• Lack of interoperability of multilevel information systems and service providers.
• Need to communicate the results obtained, with clarity and fluency, in order to generate predictability and
trust among the actors involved in the management of water resources.

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Natural infrastructure
Capacity building
• Knowledge gaps difficult the interaction and understanding between actors.
• Need to develop evidence to support decision making.
• It is not clear that water resources have a double function: as a resource and as a service.
• Result: Population needs are not efficiently covered or attended (poverty, anemia, sustainable use of the
resource, distribution of income)
• Goal: inclusion of natural infrastructure definition in the national investment system Invierte.pe
• Still a need for adapting the actual process for projects in natural infrastructure.
• It is necessary to continue generating technical tools that as a guide for project developers.
• MERESE hydric: good practice not common globally. Its implementation requires solving:
i. Subscription of agreements and determination of economic retribution
ii. Indicators that measure the relationship between conserved hectares vs. m3 flow
5. OECD First mission
Key outcomes for the peruvian government:
• Raise awareness about the efficient use of water.
• Interventions have focused on infrastructure for capturing and distributing water resources,
without taking into account:
i. source of the water resource and
ii. impacts that the discharges have on the health of the population.
• Articulation of the water resources policy with the needs of the indigenous and peasant
communities located in influence areas of economic interventions
Water education

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Thank you.