First Implementation Status Report

2030 Water Resource Group in Peru

I. Introduction

The 2030 Water Resource Group (WRG) was officially launched in Peru on April 2013 with the
signing of a Memorandum of Understanding with the Ministry of Agriculture and the National
Water Authority (ANA) on behalf of the Government of Peru. The parties agreed to explore
opportunities for cooperation in common interest issues. Among the agreed 2030 WRG
initiatives within Peru, we have:

1. Accessibility to global best practices in integral water resource management and local
information on the matter.
2. Promote an integrated watershed management plan and policies.
3. Developing capacity-building activities, addressing institutional capabilities and the
consolidation of competencies.
4. Ensuring environmental sustainability and economic growth.
5. Creating public-private sector platforms to exchange appropriate practices and
knowledge.
6. Identifying, analyzing, and recommending actions to reduce obstacles for investments in
Peru, related to water resources;

Since then the 2030 WRG and Autoridad Nacional de Agua (ANA) have met to define the scope
of their collaboration in more detail. It has been agreed that 2030WRG should support the
development and implementation of the National Water Resources Plan (to be launched in
2014) by carrying out more detailed studies on investment prioritization, and potential
enhanced private sector involvement.

In November 2013, the 2030WRG organized a workshop on “Water Resources and the
Economy” attended by over seventy five participants, to introduce 2030WRG to Peruvian
stakeholders, and to better understand their priorities across the water sector. In addition,
2030WRG presented its proposal for a multistakeholder platform (MSP) to ANA’s Consejo
Directivo and obtained a consensus to proceed with its development.

In April 2014, the 2030 WRG carried out a meeting with the private sector in Peru to define the
governance, structure, and the methodology framework of the MSP ( please refer to the
agenda in Annex B). The event was developed in Lima with the co-chair of PepsiCo Latin
America Beverages through the support of Mr. Luis A. Montoya, president (please refer to the
invitation letter in Annex C). Thirty participants assisted to the event from different sectors
such as fisheries, manufactures, mining, agriculture, banking, and energy (please refer to the
list of participants in Annex A). In addition, meetings with ANA were held with Mr. Francisco
Dumler (Former Secretario General del ANA). As part of the meeting, 2030 WRG explained
about the participants of the multistakeholder platform steering board committee which will be
represented by five members; one from the private sector, one from the government ( ANA
Concejo Directivo), one from the civil society (including indigenous group), and two from the
donor community. ANA was agreed with the formation of the board steering committee of the
MSP, however they will report directly to ANA Concejo Directivo, that is the organism which
ultimately takes the decisions of the action plan.

In May 2014, the 2030 WRG met with Mr. Sergio Campos, head of the water sanitation program
of the Inter-American Development Bank (IADB), and Mr. Fernando Breitas, lead water and
sanitation specialist. As part of the meeting, it was suggested that the support from the IADB to
the 2030 WRG will be canalized through a current financial support to the following institutions:
Fomento Economico Mexicano SAB, Universidad de Monterrey, and the Nature Conservancy.
The contribution of the institutions will be mainly on regards of the analytical work behind the
MSP. The institutions will provide technical support with their own experts, infrastructure for
trainings and events, convening the private sector for the meetings proposed by the 2030 WRG,
and equipment and computer lab to build the modeling tools under the analytical work.

II. Finding from the meeting

The main findings from the meeting on May 2014 in Lima with the private sector are:

 The proposed MSP will select working groups to concentrate on projects in specific
areas of interest. The areas of interest are:
- Economic Incentives: The MSP will aim to identify key opportunity areas for more
efficient use of water and clean water that would benefit from better economic
incentives by the end of 2014.
- Community relations: The MSP will aim to promote trust-building and openness
through a digital framework of information sharing among the stakeholders. The
MSP will map the best examples of community relations programs and develop a
code of conduct on information sharing.
- Increasing water use efficiency and reducing water pollution (for all water users
agriculture, mining, domestic, and industry). The MSP will identify programs and
investments on water use efficiency and reduction of water pollution.
 - Financing instruments: The MSP will create a framework based on the analytical
studies on how investments may be prioritized and select key priority projects for
implementation.
 To guide and inform the MSP based on the discussions, the following analytical is being
proposed to be commissioned in Peru:

a) The development of a stakeholder mapping which will map out water resources
activities being undertaken along all the coastal basins of Peru, using data (please refer
to the coastal water balance in Annex D) from the National Water Resources Plan
(PNRH), the Recursos Hidricos en el Peru report (ANA, IADB, World Bank), basin plans,
and private sector and civil society sources. Identification of key actors and drivers of
these activities will be considered as well.
b) A review of the PNRH be undertaken to determine if it is comprehensive and addresses
the full range of sustainable water resources interventions (structural and non-
structural), and if the water needs of all sectors have been considered given their likely
economic growth. A plan of investments, which also involves those proposed by the
PNRH, is to be prioritized using a suitable hydro-economic tool. The formulation of the
Terms of Reference (ToR) for hiring the team who will develop the hydro-economic tool
is finalized and is being reviewed by a panel of experts.
c) A study to determine how water funds in Peru can be made more attractive to
investors, and what suitable financial instruments (eg PPPs) may help to catalyze the
proposed investments.
d) Input and output of the hydro-economic tool will be shared with the private sector as
well as the modeling tool. Workshops to validate and present the results with the MSP
steering board will be carry out in Peru. In addition, workshops for technical officials
proposed by the private sector and government are planned to transfer the knowledge
behind the development of the tool.

To have a representation of the 2030 WRG in Peru, Mr. Cesar Fonseca was selected after a
competitive process and he was introduced as 2030 WRG representative of Peru in the
meeting on April 2014. His contract started on May 1st, and he is currently in the process of
interviewing the members who will be participating in the MSP steering board committee.

III. Next steps and timeline

ANA:
  ANA agreed with the formation of MSP steering board committee who will report to the
ANA Concejo Directivo. ANA Concejo Directivo will be responsible on taking the
decision of the action plan proposed by the MSP.
 ANA considers the 2030 WRG as key supporter to contribute to the National Water
Resources Plan (PNRH).
 ANA will participate as chair for the third 2030 WRG meeting on August 2014. The
Consejo Nacional de Competividad (CNC) from the Ministry of Treasury will be also
invited to co-chair the meeting as governmental entity that promotes the participation
of the public, private Sector, and academia. The CNC also guide the country on
developing cross-sectorial norms (www.cnc.gob.pe).

Private Sector:

 The thirty participants who assisted to the meeting agreed to continue supporting the
2030 WRG, and participate in following events. In addition, an email list will be created
and they will provide inputs/comments to the reports produced by the 2030 WRG and
share the needed information to build the hydrodynamic tool.
 The participants also agreed to support the focus groups and propose a leader who will
be convene the message to the MSP steering board committee.

Civil Society:

 The country representative of the 2030 WRG is working on identifying the member of
the civil society; it will be beneficial to have someone who represents the communities
who have been directly affected by the growth of the mining activity.

2030 WRG:

 The 2030 WRG will finalize to identify a steering board committee for the MSP on May
2014 and convene a preliminary MSP steering board meeting on June 2014.
 The 2030 WRG will put in place the working groups and participants from the private
sector will add their names and select a representative for each group.
 The 2030 WRG will confirm the governance structure of the MSP, introduce the
developers of the hydro-economic tool, and present the route map of the MSP
development on August 2014.
 The 2030 WRG will proceed to develop the stakeholder mapping on July 2014.
 ToR for the development of the hydro-economic tool consultancy is finalized and it is in
the review process. The procurement process for the Selection of the consultant using
World Bank guidelines will start on June 2014.
IV. Annex
A. List of Participants
Nombre
Pablo de la Flor Belaunde
Luis A. Montoya
Eduardo Rubio Roach
Silvia Desmaison
Ismael Benavides
Fabiola Rocha
Malva Baskovich
Roberto Tejada
Fernando Laca
Adolfo del Solar
Alexandre Reis
Jose Luis Tamayo
Alvaro Quijandria
Guido Bocchio
Rossana Ariboclo
Renato Vazquez Armas
Marc Tristant
Gabriela de La Garza
Jose Villaran
Elena Lara
Lorena Gavinho
Jacqueline Villanueva
Antonio Bernales
Henri Le Bienvenue
Elizabeth Ventura
Anders Berntell
Alastair Morrison
Cesar Fonseca
Jorge Escurra
Institución Posición/Unidad
Banco de Credito Gerente de División
Pepsico Latin Beverages Presidente
AngloAmerican Gerente de Asuntos Externos
Pepsico Latin Beverages Oficina de Presidencia
Grupo Huamani Director Gerente
AMBEV Gerente Medio Ambiente
World Bank Task Manager
IFC Official de operaciones
World Bank Especialista de Agua y
Saneamiento
Calidda Gerente de ventas regional
AMBEV Gerente General, AMBEV
AMBEV Gerente Planta Huachipa, AMBEV
IFC Gerente America Latina
SPCC Gerente Legal y RRHH
PERU 2021 Gerente de Asuntos Corporativos
AMBEV Gerente Legales y Corporativos
IFC Representante del IFC en los
Paises Andinos
Pepsico Latin Beverages Gerente de Sostenibilidad
SNP Asesor de Ambiente
Proactiva Directora Comercial
Backus Desarrollo Sostenible
SNMPE Asesora Legal
Futuro Sostenible Director Ejecutivo
Peru 2021 Gerente General
Financiera Espinoza Vicepresidenta
2030 WRG Director Ejecutivo
2030 WRG Jefe de America Latina
2030 WRG Representante en Peru
World Bank Especialista del Manejo de
Recursos Hídricos (Asia de Sur)
 B. Agenda of the meeting (Spanish version).

Agenda

Reunión del Sector Privado Acerca del Trabajo en Ejecución del 2030 Water Resources Group
en el Perú
21 de Abril del 2014 en Royal Park Hotel (Avenida Camino Real 1050, San Isidro 15073, Lima)
Desde las 2:00 PM hasta las 5:30 PM

Moderador: Dr. Jorge J. Escurra, especialista de los recursos hídricos, Unidad de Ambiente y Agua de Asia del
Sur, Banco Mundial.

 Palabras de Bienvenida por Mr. Marc E. Tristant, Representante de la Corporación Financiera

Internacional (IFC) en el Perú y Principal Oficial de Inversiones (5 minutos)

 Palabras de Bienvenida por Mr. Anders I. Berntell, Director Ejecutivo, 2030 Water Resources Group
(Co-chair de la reunión) (5 minutos)

 Palabras de Bienvenida por Mr. Luis A. Montoya, Presidente, PepsiCo Latin America Beverages. (Co-
chair de la reunión) (5 minutos)

 Presentaciones cortas de los participantes (10 minutos)

 Discusión grupal acerca del rol del sector privado en el desarrollo sostenible para el eficiente y
adecuado manejo de los recursos hídricos en el Perú, y las dificultades que el sector privado afronta
en sus operaciones en el manejo de recurso hídrico (20 minutos)

 Presentación acerca de la Plataforma de Consenso entre los Actores (Gobierno, Sector Privado y la
Sociedad Civil) por Mr. Anders I. Berntell, Director Ejecutivo, 2030 Water Resources Group (15
minutos)

 Sumario y discusión grupal acerca de los beneficios de la Plataforma de Consenso entre los Actores
(20 minutos)

 Presentación acerca del trabajo Analítico del 2030 Water Resource Group por Mr. Alastair M.
Morrison, Representante en el Perú del 2030 Water Resource Group (15 minutos).

 Sumario y discusión grupal acerca del trabajo analítico que será considerado en la Plataforma de
Consenso entre los Actores. (20 minutos)

 Conclusiones y próximos pasos (15 minutos)

 Recepción Cocktail
C. Invitation letter
D. Water Balance of Coastal Peruvian Basins