1. RIVER BASIN MANAGEMENT IN BRAZIL – THE PARAIBA DO SUL CASE B.P.F. Braga Director Agência Nacional de Águas GEF Third Biennial International Waters Conference Salvador Jun 22, 2005

2. Federative Republic 26 States 01 Federal District 5,561 Municipalities (*) 5 Geopolitical Regions - North - NE - SE - Center West - South (*) CENSUS 2000 - IBGE BRAZIL

3. ANA AGÊNCIA NACIONAL DE ÁGUAS Water Yield km 3 ESCALA Brazil: 5,660 km 3 (12%) Brazil + Foreign Countries: 8,427 km 3 (18%) World: 44,000 km 3

4. North: water resources concentrated in the Amazon Basin Amazon Basin 68 % Northeast: poorest and driest 3% South-Southeast: urban and industrial pollution 13% Mid West: the new agricultural frontier 16% Brazil US$ 14.450 billion 23% Water Supply 77% Wastewater

5. DEMAND / SUPPLY

6. FEDERAL CONSTITUTION Issued in 1988 “Art 21. The Union shall:... XIX – Implement a National Water Resources Management System and define criteria for authorization of water use” XIX – Implement a National Water Resources Management System and define criteria for authorization of water use” FEDERAL CONSTITUTION Issued in 1988 “Art 21. The Union shall:... XIX – Implement a National Water Resources Management System and define criteria for authorization of water use” XIX – Implement a National Water Resources Management System and define criteria for authorization of water use”

7. S1 S2 S3 COMMON UNDERSTANDING 1. Water in rivers R4 and R2 and in reservoir D2 belong to FEDERAL GOVERNMENT; 2. Water in rivers R1 and R3 belong to STATE GOVERNMENT; 3. If D1 is built with federal funds than reservoir waters are FEDERAL otherwise they are STATE COMPETENCE 1. Permits P2 e P6, are STATE; 2. Permits P3, P4 e P5, are FEDERAL; R1 R2 R3 R4 P1 P2 P3 P4 P5 P6 D1 D2 3. Permit P1 is FEDERAL if D1 is federal WATER JURISDICTION

8. Legal Instruments  Law 9.433/1997 “WATER LAW” Establishes the National Water Resource Policy, the National Water Resources Management System and provides regulation for Paragraph XIX, Article 21, of the Federal Constitution Law 9.984/2000 “ANA’S LAW”  Law 9.984/2000 “ANA’S LAW” Regulates the establishment of the National Water Agency (ANA), a federal entity to implement the National Water Resources Policy and to co-ordinate the National Water Resources Management System  Law 9.433/1997 “WATER LAW” Establishes the National Water Resource Policy, the National Water Resources Management System and provides regulation for Paragraph XIX, Article 21, of the Federal Constitution Law 9.984/2000 “ANA’S LAW”  Law 9.984/2000 “ANA’S LAW” Regulates the establishment of the National Water Agency (ANA), a federal entity to implement the National Water Resources Policy and to co-ordinate the National Water Resources Management System

9. - Water is public property; National Water Resources Policy Basic Principles - Water is a limited natural resource, which has economic value; - Priority in the use of water resources is given to human consumption and the watering of animals;

10. - The river basin is the territorial unit for the implementation of the National Water Resources Policy and for the actions of National Water Resources Management System; - Water resources management should always allow for multiple uses of water;

11. - Water resources management shall be decentralized and shall involve participation by the Government, the users, and the communities.

12. National State Basin CNRH MMA State Government SRH State Authority CERH ANA Basin Committee Basin Agency CouncilGovernAuthority Water Board Technical Office National Water Resources System - SINGRH Inst. Level

13. MISSION WATER USE IN FEDERAL RIVERS ARBITRATE CONFLICT AMONG USERS AUTHORIZE CONTROL REGULATORY EXECUTIVE Nat’nl. Water Res. Management System (SINGRH) RIVER BASIN MANAGEMENT

14. ANA Decentralization ANA Decentralization Public Interest Basin Committees and Agencies States and FD Agreements and Management Contracts ANA Partnership

15. ANA Organizational Structure Board of Directors (collegiate ) Board of Directors (collegiate ) General Attorney Technical Superintendencies Executive Secretary

16. BASIN COMMITTEES

17. IMPLEMENTATION OF THE WATER RESOURCES MANAGEMENT SYSTEM OF THE PARAÍBA RIVER BASIN

18. Paraíba River Basin

19.  Drainage Area: 55,000 Km 2  Paraiba river length: 1,150 Km  180 municipalities (SP = 39, RJ = 53 e MG = 88)  Population: 5,800,000 + 8,000,000 in Rio de Janeiro city  Industries: 3,500  Hydropower installed: 1,500 MW  Irrigation: 71,000 hectares  Water supply coverage = 91,9 %  Sewage collection coverage = 69,1 %  Sewage treatment = 11,3 %  Basin yield: 312 m 3 /s (Q 95% at basin outlet)  Total estimated water demand: 265 m3/s (including interbasin transfer)

20. PARAÍBA DO SUL SYSTEM

21. Interbasin Transfer to Guandu River  Flow transfer at 180 m 3 /s  Hydropower generation in the Light Complex  Responsible for Metropolitan Rio water supply (~ 50 m 3 /s)

22.  Main Problems  Water pollution due to untreated effluent discharges  Low soil fertility  Severe erosion problems  Deforestation (11% forest cover)  Interbasin transfer restraining water uses in the Paraiba river upstream and downstream

23.  Main Institutional Challenges  Multiple Jurisdictions – Union, SP, RJ, MG  Multiple River Basin Organizations  Different stages of development in the States  Different levels of capacity building in the States water agencies  Diversity of norms and standards

24. MAJOR ACHIEVIMENTS

25. IMPLEMENTATION OF THE PARAIBA RIVER BASIN MANAGEMENT SYSTEM Basin Committee is a branch of the State and not an NGO Art. 39. The River Basin Committees are composed of representatives of: 1.-The Federal Government; 2.-The States or the Federal District in which they are located; 3.-The Municipalities in which they are located, entirely or in part; 4.-The water users ; 5.-Civil society organizations related to water resources that have a demonstrated record of action in the basin. 1. The number of representatives from each sector mentioned above, and the criteria for their appointment, shall be determined in the by-laws of the committees. The representation of the Federal Government, the States, the Federal District, and the Municipalities shall be limited to half the total number of members.1. The number of representatives from each sector mentioned above, and the criteria for their appointment, shall be determined in the by-laws of the committees. The representation of the Federal Government, the States, the Federal District, and the Municipalities shall be limited to half the total number of members.

26. BASIN COMMITTEE AND BASIN AGENCY IMPLEMENTED BASIN COMMITTEE AND BASIN AGENCY IMPLEMENTED 30 % - CIVIL SOCIETY (NGO’S, Universities and Professional Associations) 30 % - CIVIL SOCIETY (NGO’S, Universities and Professional Associations) 30 % - USERS (Industries, water utilities and farmers) 30 % - USERS (Industries, water utilities and farmers) 40 % - Municipalities, States and Federal Government 40 % - Municipalities, States and Federal Government

28.  Investment Program R$ 3 Billion in 20 years = R$ 150 Million / year  Initial Investment Program - R$ 120 Million Structural Actions – Sewage Treatment Plants and Erosion Control Nonstructural Actions – Environmental Education, mobilization for public participation WATER RESOURCES PLAN September de 2002

29. Water Users Registry 16/Sep/02 a 16/Dec/02 ~ 31/Mar/03  Declaratory  Compulsory  Entire Basin

30. 4, 651 USERS (16 Jun 05)

31. IMPLEMENTATION OF THE PARAIBA RIVER BASIN MANAGEMENT SYSTEM Water Permit System Water Permit System Bulk Water Charging System Bulk Water Charging System FLOWPRICEFLOWPRICEFLOW PRICE ABSTRACTION CONSUMPTIVE DILUTION (BOD) ABSTRACTION CONSUMPTIVE DILUTION (BOD) C = Q cap x K 0 x PPU + Q cap x K 1 x PPU + Q cap x (1 – K 1 ) x (1 – K 2 K 3 ) ] x PPU PPU = R$ 0.02 K 0 = 0.4 K 1 = consumptive use reduction factor K 2 = fraction of effluent that is treated K 3 = level of treatment of effluent K 0 = abstraction price reduction factor PPU= public price of water (R$/m 3 ) Q cap = monthly volume abstracted (m 3 )

32. Criteria and public prices for different sectors (R$) SectorPPUCriteria Insignific Use Urban and Industrial Sanitation0,02- 1 L/s Farm 0,0005 BOD=0, execpt suinoculture Impact < 0,5% production cost Aquiculture 0,0004 Consumptive use and BOD = 0 Impact < 0,5% production cost Sand extraction 0,02 Small Hydro - 0,75% x energy production x Unit cost ANEEL 1 MW

33. RESULTS OF WATER CHARGES IN THE PARAÍBA DO SUL RIVER BASIN (R$) USER200320042005 Industry2.767.648,702.183.849,41484.392,26 Irrigation3.842,552.098,232.380,34 Animal supply-243,94133,06 Mining-368,21976,96 Water supply and sanitation 3.129.784,894.116.838,041.021.010,36 Other2758,0217.139,838.939,47 TOTAL5.904.034,166.320.537,661.517.832,45 Fonte: ANA (atualizado até 19/04/2005)

34. WATER COMPACT SIGNED BY MINAS GERAIS, SAO PAULO, RIO DE JANEIRO, ANA AND BASIN COMMITTEE WATER COMPACT SIGNED BY MINAS GERAIS, SAO PAULO, RIO DE JANEIRO, ANA AND BASIN COMMITTEE Implementation of integrated river basin management regardless of water jurisdiction through: Implementation of integrated river basin management regardless of water jurisdiction through: Standardization of criteria for permits and charges Standardization of criteria for permits and charges Implementation of a water resources information system Implementation of a water resources information system

35. WATER CHARGES BEING PAID BY “ALL” USERS IN THE BASIN WATER CHARGES BEING PAID BY “ALL” USERS IN THE BASIN WATER PERMITS SYSTEM IMPLEMENTED IN DIGITAL FORM AND USERS REGISTRED WATER PERMITS SYSTEM IMPLEMENTED IN DIGITAL FORM AND USERS REGISTRED INTEGRATED BASIN PLAN DEVELOPED INTEGRATED BASIN PLAN DEVELOPED

36. FIRST RESULTS OF WATER CHARGES IN THE PARAIBA RIVER BASIN Sewage Treatment Plant of São Silvestre – Jacareí (SP) –Investment: R$ 2 million (R$ 1.3 million from water charges and R$ 700,000 from public/private partnership SAAE / Votorantim) Direct Benefit: 9,000 people Indirect Benefit: 180,000 people using Paraíba do Sul river downstream for water supply.

37. SÃO SILVESTRE STP

38. Controle de Erosão – Barra Mansa/RJ ETE – Jacareí/SP Interceptor – Juiz de Fora/MG Tomada d´água –Barra Mansa/RJ Controle de Erosão – Uba/MG

39. captação consumo diluição de efluentes (DBO) captação consumo diluição de efluentes (DBO) onde: Pcap, Pcons, Pdil, = Preços públicos, a serem definidos pelo Comitê, para cada uma das parcelas. Q cap = Volume de água captada durante um mês (m 3 /mês) Q cons = Volume de água consumido pelo processo produtivo durante um mês (m 3 /mês) Q eflu = Volume de água restituído ao corpo hídrico em um mês (m 3 /mês) Cefl = Concentração do efluente de cada poluente medida ou alternativamente no caso de não haver medição, calculada por: medição, calculada por: Cefl = Ctip x (1 -  ), onde C tip = Concentração-padrão de cada poluente por tipologia ou concentração do efluente pré- tratamento. tratamento. α = Coeficiente de relação entre o volume de efluente tratado e o volume total de efluente produzido (K 2 na formulação CEIVAP) produzido (K 2 na formulação CEIVAP) ß = Coeficiente que exprime a eficiência do tratamento (K 3 na formulação CEIVAP) C cap = Concentração do poluente no corpo hídrico de captação. C meta = Concentração meta do rio para o poluente. PAGAMENTO = Q Cap x P cap + Q cons x P cons + [Q eflu x C efl – Q cap x C cap ] / C meta x P dil

40.  Reform of the water resources sector involved: decentralization of decisions; planning and management at the river basin level; independent regulation of water use and utilization of the user-pays and polluter-pays principle;  Appropriate legislation is a necessary condition, but is not sufficient. Political will and adequate institutions are fundamental for the implementation of water reform; CONCLUSIONS

41. CONCLUSIONS  ANA plays a dual role: executive agency responsible for the implementation of the national waer resources management system and regulation of water use in federal rivers. Its autonomy assures technical treatment of complex problems with exemption

42. CONCLUSIONS  Paraiba do Sul river basin is fully operational: river basin committee and agency in place, integrated river basin plan approved, water users cadaster, water permits and bulk water charges implemented and water resources information system developed

43. GRACIAS TAK GRAZIE MUITO OBRIGADO SIYABONGA MERCI THANKS benbraga@ana.gov.br