Renewable water resources 623 km³ Overlap shared by surface water and groundwater 104 km³ Dependency ratio 51.2% | Surface water produced internally 277 km³ External renewable water resources 7 km³ | |
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Withdrawals by sector 2000/2001 Domestic: 12%Agriculture: 82%Industry: 6% | ||
Bolivia has traditionally undertaken different water resources management approaches aimed at alleviating political and institutional instability in the water sector. The so-called water wars of 2000 and 2006 in Cochabamba and El Alto, respectively, added social unrest and conflict into the difficulties of managing water resources in Bolivia. Evo Morales’ administration is currently developing an institutional and legal framework aimed at increasing participation, especially for rural and indigenous communities, and separating the sector from previous privatization policies. In 2009, the new Environment and Water Resources Ministry was created absorbing the responsibilities previously under the Water Ministry. The Bolivian Government is in the process of creating a new Water Law – the current Water Law was created in 1906 – and increasing much needed investment on hydraulic infrastructure.
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Water management history and recent developments
The 1906 Water Law (Ley general de aguas) marks the beginning of Bolivia's 20th Century water resources policy. The Water Law includes provisions such as water as a public good and establish Bolivian government as main authority responsible for water management. The definition of water rights is vague, “the water passing through the land belongs to the land owner as long as it does not affect others.” No provision is included for neither groundwater property rights nor water tariffs. The Water Law was minimally modified on 1945, to specify that “no water right includes the right to deny access to water to downstream water users.” In 1988, the Senate prepared a draft to modify the Water Law to include provisions such as groundwater as public domain, and to establish a water fee for farmers based on the area benefited with improved irrigation infrastructure. Similar attempts occurred in 1995 and 1999, when the government together with the World Bank and GTZ drafted a Water Law including some fundamental principles included in the 1988 version plus provisions on institutional framework and concessions of water rights. None of the three drafts turned into a new Water Law.
Despite these efforts to concentrate water resources management into a single legal document, the different sectors involved in water use continue to act separately in accordance with several laws such as the Electricity Act, the Hydrocarbon Act, the Mining Code and the Environmental act. The lack of a clear legal and institutional framework has made difficult to ensure appropriate quality and quantity of water for the different water users in the medium and long term.
Water quality
The gradual decrease in Bolivia’s water quality is due to the release of untreated effluents from industries and cities. For example, in the Andean region, rivers transport high values of organic material, up to 100 mg/l. This water is used for irrigated agriculture downstream.
In the Amazon region, erosion and land use upstream, especially mining, deteriorate water quality due to high concentration of sediments. Forestry and agriculture also affect water quality in Bolivia. For example, sugarcane production is considered one of the main causes in the decreasing on fisheries in the Rio Pirai (Santa Cruz)
Water related risks
Natural disasters directly affect Bolivia’s development; because they cause capital losses, and damage hydraulic and other type of infrastructures. Such losses, in turn, influence economic indicators such as inflation and production, which in turn increase poverty. Floods and landslides in the rainy season affect a wide range of hydraulic infrastructure. Since year 2000, a notable increase in climate-related disaster situations have been observed in Bolivia, some of them associated with El Niño/La Niña events. In 2002, the Potosi Province experienced an unprecedented heavy snow storm, which affected about 3,000 inhabitants and killed 20,000 animals; and the La Paz Province was struck by a destructive hail, causing the death of 70 persons and US$70 million in losses. In 2004, a prolonged drought affected the Chaco Region, which consists of the Departments of Santa Cruz, Chuquisaca and Tarija, threatened the food security, health and nutritional status of approximately 180,000 people, of which 15 percent were children. El Niño 2006/2007 event caused economic losses estimated at US$0.44 billion or 4 percent of gross domestic product (GDP) and affected about 133,100 families or 0.56 million people, equivalent to five times the population affected by El Niño 1997/1998. About 54 percent of the losses occurred in the rural areas. La Niña 2007/2008 event caused damage and losses evaluated at US$0.52 billion, 20 percent higher than the previous event and affected about 123,600 families. The agricultural sector absorbed about 53 percent of these losses and damage.
Potential climate change impacts
According to a study about Climate Change in Bolivia published in 2007 by the Bolivian Government, the anticipated effects of Climate Change on water resources are:
Anticipated impacts of Climate Change by Region
Source: National Program for Climate Change
Legal framework
The former Water Ministry made an effort to draft a Water Law integrating the multipurpose use of water on a coherent and unique legal document. It is uncertain whether the new Environment and Water Resources Ministry will continue with this effort. In the meantime, two of the most important sectors in terms of social effect are regulated under a specific law, namely the Water and Sanitation Services Law No. 2066 and the Irrigation Law No. 7828.
The Irrigation Law establishes a system for granting and registering traditional water user rights “guaranteeing legally and permanently water for irrigation.” This registration of water rights for irrigation limits somehow the way in which the government can grant access to other water users through the future Water Law. .
The Water and Sanitation Services Law No. 2029 of 1999, was revised in 2000 after Cochabamba’s water war into Law No. 2066. The new law includes provisions for protection of traditional water-sharing arrangements through a system of official licenses and increase local communities participation in decision making processes such as the establishment of water tariffs. The Agency for the Supervision of Basic Sanitation (SISAB), (Superintendencia de Agua y Saneamiento Basico) which grants concessions and licenses and establishes the principles to set prices, tariffs, taxes, and quotas, was not modified by the new Law. The Government of Evo Morales considers passing a new water and sanitation services law called “Water for Life”. According to Vice-Minister Rene Orellana, this new legal framework would eliminate the SISAB and introduce a decentralized regulator in its place. Regulatory taxes would be eliminated along with the legal concept of the concession. A preferential electricity tariff would be introduced for EPSAs and community water rights would be strengthened.
Institutional framework
The Environment and Water Resources Ministry, the national water authority, created in 2009 is responsible for planning, implementing, monitoring, evaluating, and funding plans and policies for water resources management. It consists of three vice ministries: (i) water supply and basic sanitation, (ii) water resources and irrigation, and (iii) environment, biodiversity and climate change.
At the regional level, and according to the Administrative Decentralization Law, the prefectures are responsible for water management and conservation of water resources, including integrated water resources management under a river basing management approach.
At the local level, the municipalities are responsible for water management and development inside its jurisdiction according to the Municipalities Law. Local actors include water users and farmer organizations, campesino communities, indigenous people, public and private enterprises, NGOs, Universities, and public local entities.
The Interinstitucional del Agua (CONIAG), created in 2002 though Decree No. 26599, is aimed at create a forum for government, social and economic organizations to agree on legal, institutional and technical aspects related to water resources management.
Government strategy
Morales’ administration is currently in the process of developing water resources management in Bolivia under the framework of the Policy known as “Agua para Todos.” Particularly the government is aiming at: (i) establishing a sustainable, participatory, and integral water resources management through the Water Resources Management National Strategy, River Basin National Plan and Water Sector Information Program; (ii)protecting ecosystems through a Desertification Prevention Plan; (iii)increasing civil society collaboration through a Coordination Mechanisms Strengthening Plan
Water pricing, cost recovery and subsidies
The Water Law of 1906 did not establish any type of payment for water use. Irrigation legislation establishes a payment for water use equal to maintenance of the water system. The irrigation associations are in charge of establishing the water tariff which does not include cost recovery or upgrading or extending the water system.
For water supply and sanitation in rural areas, there are per capita subsidies of US$70 for water supply and 65US$ for sanitation. Moreover, the is an indirect subsidy on interest rates for internal financing funds and those projects co financed by Non-governmental organizations.
The campesino and indigenous community have never paid for water use. This together with the fact that they are the poorest group in Bolivia has traditionally excluded this group for water user tariffs in Water Law drafted in the past. Moreover, the Water Law of 1906 does not either establish a system to grant water rights. Hence to this date, there is no document or title defining who and to which extent water can be used in Bolivia.
National investment
Bolivia’s national investment on water resources has been in decline at the beginning of this century but has increased in the last couple of years.
Budgeted and actual investment on water resources
Source: Vice Ministry of Public Investment and External Financing
External cooperation
The Inter-American Development Bank is currently implementing a US$300,000 project to create a strategy for integrated management of water resources together with the Water Ministry.
The Dutch and Swedish cooperation agencies collaborated with the River Basin and Water Resources Viceministry to create the River Basin National Plan. This plan was approved in May 2007. The River Basin and Water Resources Viceministry is implementing the plan in 12 selected basins in Cochabamba, Chuquisaca, Santa Cruz and Oruro departments with a total investment of US$6 million.
The Irrigation Viceministry has channeled national and cooperation funds including US$16 million from the Development Bank of Latin America, US$18 million from the German government and US$270 million from the Inter-American Development Bank with to prepare and implement a number of irrigation projects. (See article)
The World Bank assists the Bolivian Government in a number of projects with a water resources management component including: (i) Water Related Adaptation to Climate Change, (ii) Emergency Recovery and Disaster Management; (iii) Adaptation to the Impact of Rapid Glacier Retreat in the Tropical Andes; (iv) Urban Infrastructure for the Poor; and (v) Community Development and Food Security.
In the area of Climate Change, Bolivia – together with Bangladesh, Cambodia, Mozambique, Nepal, Niger, Tajikistan and Zambia – has been selected to be part of the Pilot Program for Climate Resilience (PPCR) under the Strategic Climate Fund. The PPCR will provide about $500 million for integrating climate resilience in national development planning. It is expected that water resources management will be an integral part of the activities supported by the fund, whose resources will be channelled through the regional development banks and the World Bank.