THE NEW WATER MANAGEMENT SYSTEM OF BRAZIL: THE ROLE OF ANA B.P.F. Braga Director Agência Nacional de Águas XI IWRA World Water Congress Madrid Oct 5-9, 2003

Federative Republic 26 States 01 Federal District Municipalities (*) 5 Regions - North - NE - SE - Center West - South (*) CENSUS IBGE BRAZIL

Water Resources Concentrated in the Amazon Basin Amazon Basin 68 % Northeast: poorest and driest 3% South-Southeast: urban and industrial pollution 13% Center West: the new agricultural frontier 16% Brazil

WATER BALANCE OF BRAZIL

WATER USE  Domestic e Industrial water supply  Hydropower  Irrigation  Navigation  Fishing, tourism and recreation

BRAZIL – Intense Urbanization Process POPULATION IN 2000: 169 Million URBAN AREAS: 137 Million RURAL AREAS: 32 Million SOURCE: IBGE - Census 2000 POPULATION IN 1950: 52 Million URBAN AREAS: 19 Million RURAL AREAS : 33 Million

Service Coverage DOMESTIC WATER SUPPLY 90 % Urban Areas 18 % Rural Areas 78 % Brazil

Service Coverage SEWAGE COLLECTION 56 % Urban Areas 3 % Rural Areas 47 % Brazil

Service Coverage SEWAGE TREATMENT Approximately 20% of collected sewage is treated

48% 96% Menor 1SM Maior 20SM Equity in Water Supply and Sanitation

Hydropower  87% of total energy generation  Installed capacity of 70,000 MW  50% of installed capacity in Southeast region  Annual demand Increase of 15% until year 2010

Irrigation  Largest water user (65%)  Irrigation potential estimated at 29 million hectares  Total irrigated area of 3 million hectares - 5.8% of total cultivated area  94% of irrigated area developed by the private sector

Navigation 1,230 km Navigable reaches 12Terminals (mono, bi, tri-modal) 23Development poles 17Tourist poles 12Logistic Distribution Nodes US$ 2biInvested (50% private)

Water Management in Brazil Antecedent Conditions  Excessive Centralization and sectoral administration with electric sector predominance  Water Code of 1934  DNAEE – Ministry of Mines and Energy  SRH – Ministry of Environment, Water Resources and Legal Amazon  IBAMA - Ministry of Environment, Water Resources and Legal Amazon

FEDERAL CONSTITUTION Amended 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 Amended 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”

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

- 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;

- 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;

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

National State Basin C.N.R.H M.M.A State Government S.R.H State Authority C.E.R.H ANA Basin Committee Basin Agency CouncilGovernAuthority Water Board Technical Office National Water Resources System - SNGRH Inst. Level

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

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

IMPLEMENTATION OF THE WATER MANAGEMENT SYSTEM OF THE PARAÍBA RIVER BASIN

Paraíba River Basin

BASIN COMMITTEE IMPLEMENTED BASIN COMMITTEE 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

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 IN IMPLEMENTATION TO BE FINISHED IN DEC 2003 INTEGRATED BASIN PLAN IN IMPLEMENTATION TO BE FINISHED IN DEC 2003

IMPLANTAÇÃO DO SISTEMA DE GESTÃO DE RECURSOS HÍDRICOS NA BACIA DO RIO PARAÍBA DO SUL Sistema de Outorga Sistema de Outorga Sistema de cobrança Sistema de cobrança FLOWPRICEFLOWPRICEFLOW PRICE ABSTRAÇÃO CONSUMPTIVO DILUIÇÃO (DBO) ABSTRAÇÃO CONSUMPTIVO DILUIÇÃO (DBO) 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 = fator de redução uso consumptivo K 2 = fração do efluente tratado K 3 = nivel de tratamento do efluente K 0 = fator de redução do preço de derivação PPU= preço publico da água (R$/m 3 ) Q cap = volume mensal derivado (m 3 )

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

RIVER BASIN RESTAURATION PROGRAM or “TREATED SEWAGE PURCHASE” PROGRAM

GOALS: reduce the water pollution level in river basins with high urban and industrial concentration; Induce implementation of the SINGRH through: creation of basin committees and Agencies; water charging

Public or Private Providers, technically qualified who are interested in: Building and operating new Sewage Treatment Plants Improving existing Sewage Treatment Plants to reduce effluent discharges ELEGIBILITY CRITERIA:

BASIC ASSUMPTIONS: PRODES does not pay for civil works or equipment; PRODES does not pay for civil works or equipment; Provider is responsible for all actions necessary for the implementation, operation and maintenance of the STP. Provider is responsible for all actions necessary for the implementation, operation and maintenance of the STP. PRODES does not pay provider before the STP is in full operation; and PRODES does not pay provider before the STP is in full operation; and

TERMS OF THE CONTRACT ANA will pay 50% of the total estimated cost of the STP, up to a maximum based on the Reference Value Table ANA will pay 50% of the total estimated cost of the STP, up to a maximum based on the Reference Value TableReference Value TableReference Value Table The full amount is deposited in a Financial Fund (FIF-CAIXA) in the name of the provider. These are sure receivables that can be used as guarantee of a loan by provider The full amount is deposited in a Financial Fund (FIF-CAIXA) in the name of the provider. These are sure receivables that can be used as guarantee of a loan by provider

Access to Account is allowed: quarterly on fixed amounts for a period quarterly on fixed amounts for a period varying from 5 to 7 years using a varying from 5 to 7 years using a certification process certification processcertification

Example: 1.Establish an equivalent population (54 g BOD/inh.day) 2.Choose a Equivalent Population on the Table: hab 3.Choose a Efficiency Pattern on Table B. 4.Establish the reference value of the STP: x 50 = R$ ,00 5.Establish the maximum SUBSIDY: R$ ,00 / 2 = , ,00 ADE 50%85% 60%90% 60%90%/60% (1) 90%/60% (1) 95% --99,9999% -90% - Up to Up to Up to Up to Up to Higher than Pt REFERENCE TABLE FOR SEWAGE TREATMENT PLANT Indicador (3) Efficiency of Sewage Treatment (minimum levels of effluent charges abatement) DQO75% B Nt Reference values per capita (R$/person) Equivalent Population (2) 80% DBO SS CF C 80% 85% 99,9999%

Modelo de Avaliação Auto Avaliação Trimestral Auditoria Será feito Auditoria ? Sim Não Resultados estão OK ? (3.1.a) I Sim Resultados estão enquadrados no item 3.1.b? Não ADVERTÊNCIA SUSPENSÃO Auditoria OK? (2.2 e 2.4) Emite Notificação de Liberação Trimestral Sim Não Sim Não É a segunda seguida ou a quarta intercalada? Não É a terceira seguida ou a quinta intercalada? Não emite Notificação de Liberação Trimestral Não Sim EXCLUIR Sim F Aguarda nova avaliação I Vai para

FINANCIAL RESOURCES Federal Budget; Federal Budget; Results from water charging according to deliberations of the basin committee; Results from water charging according to deliberations of the basin committee; Earnings from FIF-CAIXA (Financial fund where subsidies are deposited for the provider) Earnings from FIF-CAIXA (Financial fund where subsidies are deposited for the provider)

Balanço Geral empreendimentos inscritos 28 empreendimentos habilitados 19 Bacias com empreendimentos inscritos 7 Bacias com empreendimentos habilitados 3 Bacias com empreendimentos selecionados e contratados 17 empreendimentos selecionados e contratados– R$ 52 milhões Investimentos declarados – R$ 138 milhões População equivalente beneficiada – 1,3 milhões de habitantes Programa Despoluição de Bacias Hidrográficas PRODES

PRODES pedidos de inscrição 82 empreendimentos habilitados 31 empreendimentos selecionados – R$ 85 milhões 37 Bacias com empreendimentos inscritos 26 Bacias com empreendimentos habilitados 17 Bacias com empreendimentos selecionados para contratação 3 Bacias com empreendimentos contratados 11 empreendimentos contratados – R$ 17,7 milhões Investimentos declarados – R$ 66,5 milhões População equivalente beneficiada – 300 mil habitantes

Programa Despoluição de Bacias Hidrográficas PRODES SEWAGE TREATMENT STATIONS IMPLEMENTED INVESTMENTS: R$ 200 MILLION ( R$ 70 MILLION – ANA) BENEFITED POPULATION: 2.5 MILLION POLLUTION REDUCTION: 76 TON BOD/DAY

ETE PINHEIRINHO – Município de Vinhedo – SP Capacidade: habitantes (133 l/s) Processo: Lodos Ativados por aeração prolongada Corpo Receptor: Rio Atibaia (Bacia do Rio Piracicaba) Carga Abatida: Kg DBO/dia Investimento ANA: R$ ,00

Ampliação de Capacidade do Sistema Lavapés Município de São José dos Campos – SP Capacidade após ampliação: habitantes (963 l/s) Processo: Lodos Ativados por Oxigênio Puro Corpo Receptor: Rio Paraíba do Sul Carga Abatida: Kg DBO/dia Investimento ANA: R$ ,00

COPING WITH DROUGHTS IN THE NE SEMI-ARID REGION

THE SEMI-ÁRID The Brazilian Semi-Arid region encompasses 86% of the States of the Northeastern region, the northern part of Minas Gerais (11%) and the north of Espírito Santo (2,5 %) with a total area of Km2. Average annual rainfall is 750 to as low as 400 mm in some localities; Estimated annual potential evapotranspiration is 2,500 mm Estimated annual potential evapotranspiration is 2,500 mm.

Component US$ Million Water resources management53.1 Engineering projects41.6 Integrated water management in the São Francisco River Basin 8.6 Water Infrastructures212.0 Project Monitoring14.7 TOTAL330.0 PROAGUA – World Bank loan BR 4310

ANA 47

ANA 48 DEMAND MANAGEMENT IN THE JAGUARIBE IN THE JAGUARIBE RIVER BASIN

Gestão da Demanda CEARA USO EFICIENTE NA AGRICULTURA

JAGUARIBE AÇ. ORÓS AÇ. BANABUIÚ Orós S. João do Jaguaribe Lioeiro do Norte Morada Nova Banabuiú Rio Russas LIMA CAMPOS Rio Jaguaribe AÇUDE CASTANHÃO Canal do Trabalhador Fortaleza Itaiçaba Alto Santo Icó Jaguaribara DNOCS Jaguaribe River Basin Irrigation System

Storage Capacity

Alto Santo JAGUARIBE AÇ. ORÓS AÇ. BANABUIÚ Orós S. João do Jaguaribe Lioeiro do Norte Morada Nova Banabuiú Rio Russas LIMA CAMPOS Rio Jaguaribe AÇUDE CASTANHÃO Canal do Trabalhador Fortaleza Itaiçaba Icó Jaguaribara Source: R$ 100,00 - PURAI R$ 400,00 - ANA Existing reservoir River Planned Reservoir Town Irrigated land RICE PURCHASE PROJECT Payment for the Project Payment for the producer

ANA – National Water Agency Conflict Resolution Results…  New water consumption patterns are 2 times lower  Aggregated economic value of new cultures is 3.5 times higher 100% Water Supply 100% Water Supply 100% Shrimp Production 100% Shrimp Production 120% Fruit Production 120% Fruit Production 15% Rice Production 15% Rice Production Economic Production Increase: US$15mi Economic Production Increase: US$15mi  Generation of jobs is 1.4 times higher

REACHING OUT THE DISPERSE RURAL POPULATION

Rain harvesting Rain harvesting Rain harvesting Rain harvesting ALTERNATIVES FOR THE DISPERSE RURAL POLULATION Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Simplified water supply systems for rural communities Desalination Desalination Desalination Desalination Desalination Desalination Desalination Desalination Underground Dams Underground Dams Underground Dams Underground Dams Underground Dams Underground Dams Underground Dams Underground Dams Environmental education and capacity building Environmental education and capacity building

RAIN WATER HARVESTING

A Cisterna Rural de Placas é conhecida como um tanque de alvenaria para armazenar a água de chuva que escoa dos telhados das casas e é canalizada através de calhas. Área média de telhado para captação = 40 m 2 Precipitação média = 400 mm / ano Raio médio da cisterna = 2,40 m Altura média = 1,30 m Volume de água armazenada - 16 m 3 Consumo médio : - pessoa = 9 litros / dia = 3,24 m 3 / ano - família = 45 litros / dia = 16,20 m 3 / ano CISTERNAS RURAIS

DESALINATION

ALTERNATIVAS TECNOLÓGICAS PARA APROVEITAMENTO DO REJEITO 1-DESPEJO DO REJEITO EM TANQUES EVAPORADORES: a água evapora e os sais resultantes podem ser aproveitados para o consumo humano e animal, bem como para a fabricação de ácido clorídrico e de soda cáustica; 2- A CRIAÇÃO DE PEIXES, como, por exemplo, a tilápia rosa E O CAMARÃO MARINHO; 3-CULTIVO DE ATRIPLEX, uma espécie de herbacea, que absorve o sal do solo e serve de alimentação ao gado. SISTEMAS DE DESSALINIZAÇÃO DE ÁGUAS

A tecnologia utilizada no processo de dessalinização de águas salinas é a osmose reversa, aplicada para concentrações salinas com um valor de STD ( Sólidos Totais Dissolvidos) variando de a ppm; A Organização Mundial de Saúde (OMS) considera água potável para consumo, aquela com concentração de sais inferior a 500 ppm; O custo do m3 da água tratada por sistema de dessalinização por osmose reversa varia de US$ 0,20 a US$ 1,30. TECNOLOGIA E CUSTOS

 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

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

 Significant practical results have been obtained in the first two years of ANA: full implementation of the new water management instruments in the Paraiba River basin; reduction of river pollution levels in the industrial southeast and improvement of water supply coverage in the poor semi-arid region of Northeastern Brazil CONCLUSIONS