Water Fund for Lima and Callao - AQUAFONDO

AQUAFONDO, the Water Fund for Lima and Callao is a financial mechanism that works as an articulation platform that mobilizes resources to conserve, protect and restore the watersheds of the Chillon, Rimac and Lurin rivers, and thus contribute to the continuous provision of quality water for the users of the watersheds and mainly for the population of Lima and Callao. As such, the fund supports public, private and civil society actors to implement measures on water security through nature-based solutions and sustainable watershed management in the three river basins Chillón, Rímac and Lurín. By promoting sustainable investments in ecosystem services the fund supports public policies with a transdisciplinary approach. The projects are financed by voluntary contributions from private companies and international cooperation. AQUAFONDO was created in 2010 with the support of The Nature Conservacy on behalf of the Latin American Alliance of Water Funds and was incorporated as a non-profit civil association in 2016.

Overview

Type of instrument:

Economic and fiscal instruments›Financing mechanisms /market-based instruments (e.g. taxes to generate revenue)

Challenges addressed

Ecologic connectivity
Water management (e.g. reuse)
Watershed restoration/water quality
Drought and fire risk
Social cohesion
Social equity
Reconnection to the biosphere / environmental education
Human health, comfort and well-being

Consideration of nature-based solutions:

AQUAFONDO fund gives priority interventions under the Nature-Based Solutions approach that improve water security and resilience, this approach also allows us to address 5 societal challenges: (1) Water security, (2) Climate change mitigation and adaptation, (3) Economic and social development, (4) Food security and (5) Environmental degradation and biodiversity loss.

Targeted (peri-)urban areas:

Parks and (semi)natural urban green areas

Allotments, community gardens or agricultural areas

Blue areas

Green areas for water management

Good practice characteristics:

Effective

Support multifunctional NBS

Sustainable in the long-term

Locally appropriate

Potential to be replicated / upscaled

Innovative

Inclusivity

Governance

Non-governmental actor(s)

Initiating body:

Citizens or community groups / NGOs

Details about how the instrument was designed:

Established in 2010 as the first Water Fund in Peru and integrated in its design the participation of the private sector, NGOs, specialists, academia and international cooperation; this process was supported by the Latin American Alliance of Water Funds. Its mandate is to contribute to water security in Lima through the promotion of sustainable investments in ecosystem services and public policy advocacy, in partnership with public and private stakeholders. In 2016 it was constituted as a civil association and is recognized as an entity receiving donations. In 2020 it was registered in the Registry of National Non-Governmental Development Organizations receiving International Technical Cooperation.

Targeted actors:

Public sector institution (e.g. school or hospital)

Private: household, real estate developer, business , financial

Researchers, university

Citizens or community groups (CBOs), NGOs

Details about the implementation:

Water Fund model involves raising donations and non-refundable funds from 4 main sources that will then be reinvested in actions and initiatives located in the communities and in the city of Lima. These actions and initiatives respond to the strategic lines of (1) Nature-based solutions and climate change adaptation practices, (2) Governance and water culture, and (3) Institutional consolidation.

How did the government support the instrument?:

Coordinating actions and establishing synergies with government entities involved in water issues, such as the Ministry of the Environment (MINAM), the Ministry of Agrarian Development and Irrigation (MIDAGRI), the Ministry of Housing, Construction and Sanitation (MVCS), the National Water Authority (ANA), the Lima Potable Water and Sewerage Service (Sedapal) and the National Superintendence of Sanitation Services (Sunass), among others. Our actions and initiatives are linked to the National Water Resources Policy and Strategy and the National Climate Change Adaptation Plan; as well as to the Law on Mechanisms for the Remuneration of Ecosystem Services-Law No. 30215, the General Law on Peasant Communities-Law No. 24656, among others.

Financing

Sources of funding:

Corporate investment

Funds provided by non-governmental organization

Other

cooperación internacional

Budget:

5 000 000€ - 10 000 000€

Details about instrument financing:

Funding comes from four main sources: the annual membership of our members, direct donations from private companies, non-reimbursable grants from international cooperation agencies, and the investment of our own resources.

Monitoring, evaluation and impacts

Is a monitoring framework in place?:

Yes

To provide continuity to the interventions and monitor them over time, sustainability agreements are signed with the beneficiaries in which they assume the commitment to keep the project operational and comply with the maintenance periods. To strengthen this link and ensure the commitment of the agreement, in 2023 we incorporated a "Water Guardian" whose functions include communicating the status of the projects executed by us and being an articulating arm in the field with direct information and a multi-stakeholder approach.

Achieved outcomes and impacts:

11.3 million m3 of water potentially infiltrated per year in 4 watersheds vulnerable to climate change; enough to supply the annual domestic consumption of drinking water for 200 thousand inhabitants, that is, 2% of the population of Metropolitan Lima and Callao in 2023 (11.3 million). This amount of infiltrated water is the result of the rehabilitation of 51 km of "amunas" infiltration canals, the construction of 5 km of infiltration ditches, and the conservation and recovery of more than 160 ha through pasture fencing and forestation activities. In addition, we developed 133 workshops to strengthen the capacities and competencies of 1,820 community members and citizens, with 27% female representation in water security and climate change issues. We were also able to formulate 56 public investment project ideas for the Environment, Agriculture and Sanitation Sector together with local leaders, community boards and municipalities, with the capacity to mobilize US$18.5 million for the State; and 3 public investment project profiles prepared for the Environment and Sanitation Sector, with the potential to mobilize US$1.8 million.

Success factors and lessons learned:

The constant dialogue with local leaders is a determining factor in the realization of ideas.Transparency and willingness to provide access to information in response to each beneficiary's request has generated a bond of trust. We have been working uninterruptedly for more than 8 years with a learning center community and this has positioned us as strategic allies of water security in a context of climate change, in turn, our experience with this community has been motivating replicability and scalability.

Sources and further information

References

List of references:

The Nature Conservancy (2022). Lima Water Fund. https://www.nature.org/en-us/about-us/where-we-work/latin-america/peru/aquafondo-the-water-fund-for-lima/ (accessed 11 July 2022)

AQUAFONDO (2022). Water Fund for Lima and Callao - AQUAFONDO available at: https://aquafondo.org.pe/ (accessed 11 April 2024)

Fondo de aqua (2022). Aquafondo. https://www.fondosdeagua.org/es/los-fondos-de-agua/mapa-de-los-fondos-de-agua/peru/agua-fondo-lima-peru/?tab_q=tab_container_copy_c-tab_element_951750004 (accessed 11 July 2022)

Interview(s):

Interview to the Executive Director on the topic "Ancestral Technique of Sowing and Harvesting of Water in Huarochirí" in the program TV Perú Noticias available in: https://www.youtube.com/watch?v=gvOXJ3su1vo&t=460s Interview with the Executive Director on the topic "Water crisis" in the Canal N program available at: https://www.youtube.com/watch?v=Jrk6klSVCrg

Further documents

Weblinks:

https://www.linkedin.com/company/aquafondo/

https://www.instagram.com/aquafondo/?hl=es

https://www.facebook.com/aquafondo

https://twitter.com/aquafondolima

Photos

@ Flickr