Here in Quito water is life. What if I told you about a fund ensuring that lifeblood keeps flowing? This is the story of FONAG.
FONAG stands for Fondo para la Protección del Agua. It means Water Protection Fund in Spanish. FONAG is a pioneering initiative ensuring Quito’s water security. It is a mature fund that sets a great example of what works for Quito.
Imagine Quito’s population exceeding 1.5 million people. Water consumption is around 150 million cubic meters per year. FONAG steps in to bridge the gap between water demand and sustainable supply.
FONAG began as a pilot project in 1998. Negotiations started then. Contributions to the fund started in January 2000. Financing of watershed protection projects began in January 2002.
The Nature Conservancy and the Quito government drove the initiative. They wanted to safeguard hydrological environmental services. The Cayambe-Coca and Antisana reserves provide these services. Quito’s water supply depends on them.
FONAG operates as a trust fund. Voluntary contributions from water users are invested. The fund rehabilitates and protects water basins. These basins supply water to Quito. By the end of 2009, FONAG held more than US$7 million. It invested about US$ 0.8 million in 2008.
Who contributes to FONAG? Water users in Quito and surrounding areas contribute. This includes farmers, hydropower companies, industries, tourist operators and domestic users. Each pays different water use rates.
The Quito water utility pays one percent of monthly water sales. That is about $14000 per month. A brewery made a one-off payment of US$6000. Quito Electrical Utility pays $45000 per year.
An independent financial institution manages the money. Part of the funding ensures long-term sustainability. Part of the funding goes directly to watershed protection activities.
FONAG’s goals include watershed protection. The fund also focuses on improved management practices. Land acquisition in critical areas is another key goal.
FONAG financed possible activities. These include providing alternative income for local residents. They also include supervision and improved agricultural practices. Education and training are also part of it.
By 2008, more than 65000 hectares were under management. The project proposes a high degree of community participation. Environmental education reduces poaching and illegal fires.
FONAG has faced challenges. The process has been slow and painstaking. The existence of FONAG depends on continued financial contributions.
But FONAG has also achieved significant milestones. It helps to coordinate and enhance individual efforts. It takes advantage of the skills and capabilities of all players. FONAG ensures continuity and transparency in conservation activities. The fund provides long-term conservation financing. It also expands public and private participation in conservation.
FONAG demonstrates the power of collaboration. It shows how stakeholders can unite to protect a vital resource. The fund ensures Quito’s water keeps flowing for generations. It’s a story of sustainability and community.