Financing Watershed Conservation: The FONAG Water Fund in Quito, Ecuador

Resumen

Do you know where your drinking water comes from? It is very likely that the water that comes out of your tap is brought through miles of pipeline from a protected area. This is particularly true in Latin America, where many national parks and protected forests were originally established to protect water sources. Over time, however, the link between biodiversity conservation and hydrological maintenance has often been lost. National park authorities often lack clear management objectives and resources to insure the regeneration of hydrological resources. Water users, whether they are city dwellers, farmers, or electricity consumers, are frequently not even aware of the source of their water. As a result water resources are being depleted and quality is deteriorating in many countries. In Quito, the capital of Ecuador, threats to water resources are spurring action. In early 2000 the city established a water fund (Fondo del Agua, FONAG) to finance the management and conservation of surrounding watersheds. Early experiences are encouraging. This paper describes FONAG, outlines its early experience, and highlights emerging risks and opportunities.