Report No. 36345-CO Republic of Colombia Mitigating Environmental Degradation to Foster Growth and Reduce Inequality February 25, 2006 Environmentally and Socially Sustainable Development Department Latin America and the Caribbean Region Document of the World Bank OUTLINE OF THE REPORT The report is divided into threeparts. outlined below . Eachpart containsa detailed table of contentsfor its chapters . Abbreviations andAcronyms ................................................................................................... ... xi11 Local and RegionalEnvironment Authorities ........................................................................ xviii ... Acknowledgements................................................................................................................... xix Executive Summary ................................................................................................................ xxi Part 1: Institutional Change and EnvironmentalPriorities ................................................. 1 7 2 A Unique Model for Environmental Management................................................ 1. Overview.................................................................................................................. . 11 ........................................................................................... 27 4 Decentralization: A Balancing Act ........................................................................ 3. Actors and Institutions . 47 5. Setting Environmental Priorities: Top DownandBottomUp............................... 77 Part 2: Reducingthe Burden of Diseasethrough Better EnvironmentalManagement ....................................................................... 113 6. Waterborne DiseasesRemain Widespread.......................................................... 119 7. ImprovingAir Quality ......................................................................................... 147 185 9 The Environmental Cost o fAccelerated UrbanGrowth...................................... 8. A Silent Killer:Indoor Air Pollution................................................................... 205 10 LivingwithNatural Disasters.............................................................................. .. 223 Part 3: Toward Sustainable Management of a RichEndowment ofNaturalResources ................................................................. 259 11. Water ManagementinaWater-Rich Country ..................................................... 263 12 LandDegradation and Deforestation................................................................... 287 13. Biodiversity Loss andOther Global EnvironmentalProblems............................ . 313 14. Conclusions andRecommendations .................................................................... 335 References................................................................................................................... 345 i CONTENTS Abbreviations andAcronyms ...................................................................................................... ... xi11 Local andRegional EnvironmentalAuthorities ........................................................................ xviii ... Acknowledgments ........................................................................................................................ xix Executive Summary ................................................................................................................... xxi InadequateWater Supply, Sanitation, andHygiene........................................................................................... ............................................................. xxii ..... Natural Disasters.................................................................................................................. UrbanandIndoor Air Pollution xxiii xxiv UrbanEnvironmental Management..................................................................................... Water Resources Policies...................................................................................................... . . xxiv xxv Institutional Strengthening.................................................................................................. xxvii Global Environmental Problems......................................................................................... Soil DegradationandDeforestation..................................................................................... xxvi xxvii Conclusions........................................................................................................................ xxviii ... PART I:InstitutionalChange andEnvironmentalPriorities Chapter 1 .Overview..................................................................................................................... 7 Objectivesofthe Country EnvironmentalAnalysis ................................................................. CEA Process and Summary...................................................................................................... 8 8 Chapter 2 A Unique Modelfor EnvironmentalManagement . ............................................... 11 Introduction............................................................................................................................. 11 Institutional andLegalFoundations: 1952-1 974 ................................................................... 12 ExpansionofRolesandLegalFrameworks: 1975-1993 ....................................................... 14 ConsolidatingInstitutions, Regulations, andPlanning: 19962005 ....................................... Conclusions............................................................................................................................. 20 24 Chapter 3 Actors and Institutions . ............................................................................................ 27 EnvironmentalInformationSystems ...................................................................................... 27 The Ministry ofEnvironment ................................................................................................. SINA's Finances..................................................................................................................... 29 National Environmental Council andNational TechnicalAdvisory Council ........................ 31 37 National PlanningDepartment(DNP) 37 InstitutesofInvestigation . . ........................................................................................................ .................................................................................... 38 National Parks System............................................................................................................ Public Participation................................................................................................................. 40 ............................................................................................................. 40 Judiciary.................................................................................................................................. Control Organizations 41 41 Conclusions andRecommendations ....................................................................................... 42 Chapter 4 Decentralization: A BalancingAct . ......................................................................... 47 Background............................................................................................................................. 47 Overall Performanceof CARS................................................................................................ 48 ... ill Allocationo f CAR Resources andPriority Setting................................................................ 49 Sources of CARs' Financial Resources .................................................................................. 63 Adequacy of HumanandTechnicalResources ...................................................................... SanitationInfrastructure.......................................................................................................... 66 68 RelationshipsbetweenCARs andother SINA Entities .......................................................... 69 ConclusionsandRecommendations....................................................................................... 71 Chapter 5 SettingEnvironmentalPriorities:Top DownandBottomUp 77 Introduction............................................................................................................................. . ............................ Annual Cost ofEnvironmentalDamage................................................................................. 77 78 Water, Sanitation, andHygiene .............................................................................................. 81 UrbanAir Pollution................................................................................................................. 90 Indoor Air Pollution ................................................................................................................ 93 Agricultural LandDegradation ............................................................................................. 100 NaturalDisasters ................................................................................................................... PerceptiononEnvironmentalPriority Problems.................................................................. 105 Conclusions........................................................................................................................... 112 109 PART 11: Reducingthe BurdenofDiseasethrough BetterEnvironmentalManagement Chapter6 .WaterborneDiseasesRemainWidespread......................................................... 119 Background........................................................................................................................... 119 Assessment of Policy Design, Efficiency, andEffectiveness.. 120 Analysis of Policy Implementation ....................................................................................... ............................................. Analysis ofAlternative Interventions................................................................................... 127 128 Conclusions andRecommendations ..................................................................................... 145 Chapter7 ImprovingAir Quality . .......................................................................................... 147 Introduction........................................................................................................................... 147 Air Quality Management...................................................................................................... 149 Performance ofthe Air Quality Management System .......................................................... PotentialInterventionsto Control Air Pollution................................................................... 157 166 ConclusionsandRecommendations ..................................................................................... 179 Chapter8 A SilentKiller: IndoorAir Pollution . ................................................................... 185 Introduction ........................................................................................................................... 185 AcuteRespiratoryIllnessinColombia................................................................................. 187 HealthEffects ofIndoorAir Pollution .................................................................................. 187 Fuelwood Consumption........................................................................................................ StoveEfficiency.................................................................................................................... 193 Cost of Interventions............................................................................................................. 194 195 Benefit-Cost Analysis 197 Sensitivity Analysis .............................................................................................................. .......................................................................................................... 200 Effectiveness of Indoor Air PollutionControl Programs 201 ConclusionsandRecommendations ..................................................................................... ..................................................... 203 iv Chapter 9 The EnvironmentalCost of Accelerated Urban Growth . ................................... 205 Introduction........................................................................................................................... 205 UrbanGrowth andEnvironmentinColombia Housing Policy-Main EnvironmentalDifficulties andthe Government's Response ........206 ...................................................................... 208 Conclusions andRecommendations-Housing andUrbanDevelopment........................... 213 Waste Management ............................................................................................................... BackgroundandBriefHistory.............................................................................................. 216 217 IntegratedWaste ManagementGuidelines CleanProductionAgreements .............................................................................................. ........................................................................... 219 National DevelopmentPlan2002-2006 ............................................................................... 220 220 Effectiveness of the Waste ManagementSystem ................................................................. 221 HazardousandMedical Waste Management ........................................................................ 226 227 ConclusionsandRecommendations-Waste ManagementandUrbanDevelopment.........228 Other SelectedIssues Relatedto Waste Management.......................................................... CleanProductionAgreements .............................................................................................. 229 Chapter 10 Livingwith NaturalDisasters . ............................................................................. 233 Introduction........................................................................................................................... 233 NaturalDisastersinColombia OccurrenceandImpactsofNatural Disasters....................................................................... .............................................................................................. 233 Effectiveness ofPolicy Design............................................................................................. 236 Assessment ofNaturalDisasterPolicies............................................................................... 237 242 Evaluation ofDisasterPlanning............................................................................................. Evaluation of FundingRequirementsandArrangements..................................................... 246 Evaluationof LandUse PlansandConstructionStandards.................................................. 248 251 Challenges to DisasterPrevention ........................................................................................ ParallelsbetweenSNPAD and SINA................................................................................... 251 ConclusionsandRecommendations..................................................................................... 252 253 PART 111: Toward Sustainable Managementof a RichEndowmentofNaturalResources Chapter 11 .Water Management ina Water-Rich Country ................................................. 263 Introduction........................................................................................................................... 263 Water Quantity ...................................................................................................................... 264 MainActors inWater ResourcesManagementPolicy Design ............................................. 265 Analysis of Water ResourcesManagementPolicy Design Effectiveness of Policy Implementation............................................................................... ................................................... 266 WatershedAdministration andManagement........................................................................ 267 272 DegradationofWater Bodies ................................................................................................ 272 Policy Design Policy Implementation.......................................................................................................... ........................................................................................................................ 273 273 Water Pollution Control........................................................................................................ The Caseof BogotB's Wastewater TreatmentPlant............................................................. 274 280 Cartagena.............................................................................................................................. Conclusions........................................................................................................................... 281 280 Recommendations................................................................................................................. 283 V Chapter 12 LandDegradationandDeforestation . ................................................................ 287 Introduction ............................................................................................................................ 287 Soil Erosion andSalinization: Magnitudeand Dimensionsofthe'Problem ......................... 288 Soil Erosionand Salinization: Policy Design ....................................................................... Soil ErosionandSalinization: Policy Implementation......................................................... 296 297 Forests ................................................................................................................................... 300 ConclusionsandRecommendations ..................................................................................... 310 Chapter 13 BiodiversityLossandOther GlobalEnvironmentalProblems . ....................... 313 Introduction Biodiversity........................................................................................................................... ........................................................................................................................... 313 TheNational ProtectedAreas System.................................................................................. 314 316 319 Climate Change..................................................................................................................... The Policy for SocialParticipationinBiodiversity Conservation........................................ 328 OzoneDepletion ................................................................................................................... Conclusions andRecommendations..................................................................................... 331 332 Chapter 14 ConclusionsandRecommendations . ................................................................... 335 Tackling Environmental Priorities ........................................................................................ 339 References .................................................................................................................................. 345 Tables 1: MainPolicy Options of the Report................................................................................................ m i x 2.1:Characteristics of CorporationsEstablishedduring 1954-1 971 ................................................... 13 2.2: Creation of SelectedNationalEnvironmental OrganizationsinLatinAmerica ........................... 18 2.3: Annual EnvironmentalExpenditureof CARs, MAVDT, andIDEAMas Percentage of GDP, 1995-2003 ................................................................................................................................... 22 2.4: Environmental Investmentsby CARS, 1995-2003 ....................................................................... 24 3.1: Ministry of Environment Staffing andSalaries, 2002 ................................................................... 31 3.2: Ministry of Environment InvestmentBudget by Issue, 2002 33 3.3: Recommendations .......................................................................................................................... ........................................................ 45 4.1:ASOCAR DataVariables with DirectMeasures ofPerformance ................................................. 4.2: Categorizationof CAR InvestmentProjects................................................................................. 48 50 4.3A. Severity of Riskversus Percent, 2001 Total Investmentby CAR: Soil Erosion ........................ 53 4.3B. Severity ofRiskversus Percent, 2001Total Investmentby CAR: Flora andFaunaDegradation ..................................................................................................................................................... 54 4.3C. SeverityofRiskversus Percent, 2001Total Investmentby CAR: NaturalDisasterPrevention55 4.3D. Severity of Riskversus Percent, 2001Total Investmentby CAR: Water Pollution..................56 4.3E. Relative Severity ofRiskversus Relative Intensity of2001 Investmentby CAR: Air Pollution ..................................................................................................................................................... 57 4.3F. Relative Severity of Riskversus Relative Intensity of2001 Investmentby CAR: SolidWaste 58 4.4A. InvestmentSpending: Planned(PAT) versus Actual (2001) ...................................................... 4.4B. InvestmentSpending: Planned(PAT) versus Actual (2001) for Corantioquia........................... 59 60 4.4C. InvestmentSpending: Planned(PAT) versus Actual (2001) for CRA ....................................... 61 4.4D. InvestmentSpending: Planned(PAT) versus Actual (2001) for Cardique ................................ 4.5: CAR Resources, 2003 (million pesos) .......................................................................................... 62 65 4.6: Recommendations ......................................................................................................................... 75 Vi 5.1: Annual Cost of Environmental Damage-Low andHighEstimates............................................ 78 5.2: Baseline Data for Estimating Health Impacts ............................................................................... 83 5.3: EstimatedAnnualImpactsonHealthDueto ................................................................................ 84 5.4: EstimatedDALYsLost to DiarrhealMortality andMorbidity 85 5.5: EstimatedAnnual Cost ofDiarrheal Illness .................................................................................. ..................................................... 85 5.6: EstimatedAnnual Cost-of-Illness (Morbidity) by Category 85 5.7: Baseline Data for Cost Estimation ................................................................................................ ......................................................... 86 5.8: Annual Cases of Hepatitis A andTyphoidParatyphoid (2000-03) .............................................. 87 5.9: EstimatedAnnual Cost ofHepatitis A andTyphoidParatyphoid 87 5.10: Baseline Data for Cost Estimation .............................................................................................. ................................................. 87 5.11:EstimatedAnnual Cost ofBoiling DrinkingWater 88 5.12: Baseline Data for Cost Estimation .............................................................................................. .................................................................... 89 5.13: Unit Costs of Water Purification ................................................................................................. 89 5.14: EstimatedTotal Annual HouseholdCost ofAvertive Expenditures ........................................... 89 5.15: Baseline Data for Cities withParticulateMatter MonitoringData ............................................. 90 5.16: Baseline Data for Cities without ParticulateMatter MonitoringData ........................................ 91 5.17: Estimated Impactson HealthDueto UrbanAir Pollution 91 5.18: EstimatedHealthImpactby City ................................................................................................ .......................................................... 92 5.19: EstimatedAnnual Cost of HealthImpacts 92 5.20: Estimated Annual Cost ofMorbidity .......................................................................................... .................................................................................. 93 5.21: FuelsUsedfor Cooking inColombia .......................................................................................... 94 5.22: HouseholdFuelwoodUse ........................................................................................................... 95 5.23: HealthRisks of Indoor Air Pollution .......................................................................................... 95 5.25: EstimatedAnnualImpacts onHealthDueto Indoor Air Pollution 98 5.26: EstimatedDALYsLost to Indoor Air Pollution .......................................................................... ............................................. 98 5.27: EstimatedAnnual Cost of IndoorAir Pollution .......................................................................... 99 5.28: Estimated Cost-of-Illness by Category ........................................................................................ 99 5.29: Baseline Data for Cost Estimation ............................................................................................ 100 5.30: Indicators of LandDegradation ................................................................................................. 102 5.31:Estimated RegressionCoefficients ............................................................................................ 103 5.32: Simulated Relative Yields ......................................................................................................... 104 5.33: EstimatedAnnual Cost of LandDegradation ............................................................................ 104 5.34: Number of PeopleandUnitsAffectedbyNaturalDisasters 105 5.35: Annual Average Impacts for Three Periods .............................................................................. ..................................................... 106 5.36: Percentage of DisasterImpactsby Type ofDisaster, 1999-2003 ............................................. 106 5.37: Numberof PeopleAffected (annual average 1997-2003) ........................................................ 107 5.38: EstimatedAnnualCost ofNaturalDisasters ............................................................................. 108 5.39: EstimatedAnnualized Cost of Major Earthquakes ................................................................... 109 5.40: UnitCosts Appliedto FrequentlyOccurring Disasters ............................................................. 109 6.1: Diarrhea inChildren underAge 5 ..................................... 1......................................................... 120 6.2: Summary ofMeta-analysisby FewtrellandColford (2004) ...................................................... 122 6.3: Tariff Increases for Failure to Achieve Water Quality Targets 126 6.4: UrbanSewer SystemCoverage, 2001 ....................................................................................................... ......................................................................................... ................................................... 128 6.6: Rates of Reduction inDiarrhealIllness UsedinPruss andOthers (2002) .................................. 6.5: SelectedExposureScenarios 129 130 6.7: ExposureScenarioApplication to Colombia .............................................................................. 131 6.8: Water Supply and Sanitation inColombia (% of Households) 132 6.9: ScenarioAllocation Rules ........................................................................................................... ................................................... ................................ 133 6.11:UrbanWater Supply and Sanitation inColombia (% ofurbanpopulation).............................. 6.10: Rural Water Supply and Sanitation inColombia (%of ruralpopulation) 133 133 6.12: EstimatedAnnual Cases of DiarrhealIllness inColombia in2000 .......................................... 134 vii 6.13: EstimatedAnnual Cases of Diarrheal Illnessper PersoninRural Colombia 134 6.14: Benefits andCosts of ImprovedRuralWater and Sanitation(Low Case) ................................ ............................ 135 6.15: Benefits and Costs of ImprovedRuralWater and Sanitation(HighCase) 135 6.16: HouseholdTime Savingsfrom Improved Water Supply .......................................................... ............................... 136 6.17: Key ParametersandOutcomesinaBenefit-Cost Analysis ofHandwashing 138 6.18: Review of Costs andEffectivenessofHandwashingPrograms ................................................ ........................... 138 6.19: Benefits andCosts of aNationalHandwashingPrograminColombia ..................................... 140 6.20: Benefits andCosts of aNationalHandwashingProgram(behavioral change lastingtwo years) ................................................................................................................................................... 142 6.21: Benefits andCosts of a DrinkingWater DisinfectionProgram ................................................ 143 6.22: Benefits of Intervention Alternatives inColombia (Morbidity 6.23: Benefits of Interventions inColombia (Child Mortality) .......................................................... ................................................. 145 6.24: Summary ofRecommendationsfor ReducingWaterborne Diseasesin Colombia 146 7.1:EstimatedHealth Impact of UrbanAir PollutioninColombia ................................................... ...................145 148 7.2: Development ofNationalNorms on Air Pollutant Emissions, 1995-2002 ................................ 7.3: Air Quality Standards: Decree 02 of 1982.................................................................................. 150 7.4: Standards for Air Quality inBogotb, DAMA Resolution 1208 of 2003..................................... 152 153 7.5: Regulation of SulfurContent inGasolineandDieselFuels ........................................................ 155 7.6: EmissionsReductionswith MassTransportation Systems, 2004-20 156 7.7: AnnualAmbient PMlo Levels inSelectedCities (pg/m3) ........................................................... ......................................... 160 7.8: VAT Exemptions for Environmental Investments, 1997-2003 .................................................. 161 7.9: PMlo Concentrationson "Day Without My Car" versus Daily Average .................................... 162 7.10: EmissionInspectionsofMotor Vehicles inCali, 1997-2003 ................................................... 163 7.11:Revenues from Vehicle InspectionPrograminCali, 1997-2003 ............................................. 163 7.12: Vehicles Convertedto CNG as of July 2004 ............................................................................. 165 7.13: Hectaresof Sugarcane inCVC with GreenCuts, 1997-2003 ................................................... 167 7.14: EstimatedPMlo EmissionsinBogotb, 2002 (tondyear ............................................................. 169 7.15: Emission Source Ratios of PM2.5andPMlo 169 7.16: Nitrates and Sulfates inPM2..5 ................................................................................................... .............................................................................. 170 7.17: ModelResults for Annual EmissionInventory inBogoth 170 7.18: EstimatedCost of DamageCausedbyPMlo inBogoth ............................................................ ........................................................ 171 7.19: Estimatesof Vehicles andFuelConsumption inBogotb .......................................................... 174 7.20: PMlo EmissionsFactors ............................................................................................................ 175 7.21: EstimatedPMlo DamageCost per Vehicle inBogotb ............................................................... 176 7.22: Benefits ofDiesel Vehicle RetrofitTechnology 177 7.23: Benefits of Conversion to CNG ................................................................................................ ....................................................................... 178 7.24: Benefits of Converting to Low-sulfur Diesel ............................................................................ 179 7.25: Summary ofRecommendationsfor ImprovingUrban Air Quality inColombia 182 8.1:Acute Respiratory Illness (ARI)PrevalenceRates inChildren .................................................. ...................... 187 8.2: ChildHealth, ARI Treatment, andMaternalEducation 188 8.3: Relative Risks for Strong andModerate HealthOutcomes......................................................... .............................................................. 8.4: Fuels, Stove Technology, andPollutionScenario....................................................................... 189 8.5: Base Case Estimation of Scenario-specificRelative Risks......................................................... 189 190 8.6: ParticulateMatter (PM) Concentrationsfrom Cooking Stove 191 8.7: Odds Ratios for ARI .................................................................................................................... .................................................... 192 8.8: EstimatedAnnual HouseholdConsumption of Fuelwood .......................................................... 195 8.9: Annual RecurrentCost of Complete FuelSubstitution ............................................................... 196 8.10: BaselineParameters for Estimating the Cost ofFuelSubstitution 196 8.11: Cost EstimatesofImprovedWood Stoves and LPG Stoves ..................................................... ............................................ 196 8.12: Interventions .............................................................................................................................. 197 8.13: EstimatedAnnual Benefits of Interventions .............................................................................. 198 viii .................................................................................. 8.15: Benefit-cost Ratios of Interventions......................................................................................... 8.14: EstimatedAnnual Costs of Interventions 199 200 8.16: HouseholdsUsingSolidFuels .................................................................................................. 201 8.17: Change in.Shareof HouseholdsUsing SolidFuels ................................................................... 8.18: Summary ofRecommendationsfor AddressingIndoor Air Pollution inColombia 203 9.1:Total andPer Capita Waste Generated(1998-2001) .................................................................. .................202 221 9.2: PopulationDensity andWaste GenerationinColombia (1988-2001) ....................................... 222 9.3: Composition ofWaste ................................................................................................................. 223 9.4: FinalDisposal of Wastes ............................................................................................................. 224 9.5: SolidWastes Recycled, by Material ................................................................................................. ............................................................................................ 224 9.6: Disposal of SolidWaste inCAR 225 9.7: Characteristicsof Waste ProgramsinSelectedAreas ................................................................. 226 9.8: Summary of Recommendationsfor AddressingProblemsAssociatedwith AcceleratedUrban ....................................................................................................................................... 10.1:Disaster ExposureIndicators inCentral and SouthAmerica, 1970-1999 ................................ Growth 231 234 10.2: Percentage of DisasterImpactsby Type of Disaster 1999-2003 (%) 236 10.3: Impacts ofNatura1Disasters 1999-2003 .................................................................................. ....................................... 237 10.4: AnnualAverage Impacts ofNatura1Disasters, 1999-2003 ...................................................... 237 10.5: Number of PeopleAffectedby Landslides, Floods, and Storms in2003 ................................. 10.6: ProjectedEconomic Loss from DisastersandGovernmentFinancing Needs (million US$) 245 ...238 10.7: ExpectedAnnualized Loss Dueto 20-year to 100-year NaturalDisasters 246 10.8: DisasterFundingby Source andYear (million 2004 pesos) ..................................................... .............................. 10.9: Initial, Additional, andTotal Budget Allocation to FNC.......................................................... 247 248 10.10: ImplementationofPLECs 1998-2004 .................................................................................... 249 10.11:ImplementationofPLECs by CAR andMunicipality (2002) ................................................. 10.12: Summary ofRecommendationsfor StrengtheningPreventionofNaturalDisasters 256 11.1:MainSourcesandDemandsfor Water inthe BogothSavannah ............................................... ..............250 269 11.2: InstitutionalActors inthe Water Sector for the Bogoth Savannah ............................................ 270 11.3: New Water Concessionsby Sector, 1998-2002 272 11.4: Daily BOD Productionby Sector .............................................................................................. ........................................................................ 276 11.5: Efficiency ofOrganic LoadRemoval in40 Wastewater TreatmentPlants ............................... 278 11.6: EstimatedCosts of RequiredAqueducts andSewers inUrbanAreas, 2001-10 279 11.7: Investment inWastewater TreatmentSystems, 1998-2001 ...................................................... ....................... 279 11.8: Recommendationsto ImproveWater ResourcesManagement ................................................. 284 12.1: Highor Very HighSoil Erosion, by Department ......................................................................... ...................................................................... 289 12.3: PrincipalRegionsAffectedby HighandVery HighErosion................................................... 12.2: Soil Erosion inColombia by Level of Severity 289 289 12.4: Soil Erosion inColombia by Level of Severity ......................................................................... 290 12.5: Change inHighandVery HighErosion, 1988-2004 ................................................................ 290 12.7: Highor Moderate Soil Salinity, by Region ............................................................................... 292 12.8: Salinization inThree Key Geographic Areas ............................................................................ 292 12.9: Salinization inthe CaucaValley ............................................................................................... 12.11:EstimatedErosion Costs for Three Departments.................................................................... 292 293 12.10: Salinization inSelectedAreas of the Bogoth Savannah ....................................................................... .......................................................... 293 12.12: Most Suitable LandUse andActual LandUse 294 . 12.13: SuitableLandUse andLandUse Conflicts ............................................................................. 12.14. LandUse andIrrigatedAreas inColombia, 1980-2001 (thousandhectares) ......................... 294 12.15: Causes ofDeforestationinColombia...................................................................................... 295 295 12.16: CAR InvestmentsinLandQuality, 1995-2000 (thousandpesos) 298 12.17: CARSInvestment inLandQuality (thousandpesos) .............................................................. .......................................... 12.18: Soil DegradationRiskcomparedto CAR Investment inSoil Conservation........................... 299 301 ix 12.19: LandUse Planningand Soil Zoning by CAR ......................................................................... 302 12.20: Forest Cover ............................................................................................................................ 303 12.21: RegressionAnalysis ofForestCover (hectares) 12.22: Changes inGreenCover inColombia, 1986-94 and 1994-2001 ........................................... ..................................................................... 304 309 12.23: Protective ReforestationinColombia. 1991-2002 309 12.24: Recommendations ................................................................................................................... ................................................................. 311 13.1: The NationalProtectedAreas System ....................................................................................... 316 13.2: Colombia's GHGEmissionsby Gas andSector. 1994 ............................................................. 13.3: Recommendationsto Control BiodiversityLoss andOther GlobalEnvironmentalProblems 334 14.1:MainPolicy Options ofthe Report ............................................................................................ .328 343 Figures 1:Annual CostofEnvironmental Degradation(% of GDP)............................................................... xxi 2: PMlo Average Annual ConcentrationsinSelectedCities (pg/m3) ................................................ xxiv 3: Economic Cost of SoilDegradationinSelectedCountries ........................................................... xxvi 4: Percentageof Landwith ProtectedAreas inSelectedCountries ................................................. xxvii 5: Organizations of Colombia's SINA .............................................................................................. xxxi 2.1:Public EnvironmentalExpenditureas aPercentage of GDP inArgentina, Brazil, Chile, Costa Rica, Mexico, andColombia ....................................................................................................... 22 2.2: Expendituresof SINA Agencies, 1995-2003 ................................................................................ 24 5.1:Annual Cost of Environmental Damage(% of GDP) 78 5.2: EstimatedAnnual UrbanCosts (billion pesos) ............................................................................. ................................................................... 79 5.3: EstimatedAnnual Rural Costs (billion pesos) ............................................................................... 79 5.4: Costs ofEnvironmentalDegradation(Health andQuality of Life) .............................................. 80 5.5: Costs by Category (billion pesos) ................................................................................................. 80 5.6: "Physical" Costs by Category (billion pesos) ............................................................................... 80 5.7: Number of Deathsby Category ..................................................................................................... 81 5.8: DeathsamongChildren, by Category ........................................................................................... 81 5.9: Annual Costs of InsufficientWater, Sanitation, Hygiene (billion pesos) 81 5.10: Annual Costs by Category (billion pesos) ................................................................................... ..................................... 82 5.11:Annual Costs of UrbanAir Pollution(billion pesos) .................................................................. 90 5.12: Annual Costs of Indoor Air Pollution(billion pesos) ................................................................. 93 5.13 :Annual Costs of Agricultural LandDegradation (billion pesos) ............................................... 101 5.14: Costs of EnvironmentalDegradation (Erosion and Salinity) .................................................... 101 5.15: EstimatedAnnual Costs ofNaturalDisasters(billion pesos) 5.16: Top Priorities for Colombia According to Lowest andHighest Income Groups...................... .................................................... 105 111 5.17: Top Priorities for HouseholdsAccording toLowest andHighest Income Groups.................... 111 6.1: Proportion of DALYsAttributable to Unsafe Water 120 6.2: Child Mortality andWater Network ........................................................................................... .................................................................. 123 6.3 : Child Mortality andUrbanization, by Department ...................................................................... 123 6.4: Benefit-Cost Ratios of RuralWater andSanitation (Low Case) ................................................. 6.5: EstimatedBenefit-Cost Ratios for Handwashing, by Degree ofProgramEffectiveness ............136 141 6.6: Benefit-Cost Ratios over Time for Handwashing (20 PercentEffectivenessTarget) .................141 6.7: Benefit-Cost Ratios for DrinkingWater DisinfectionProgram, by Degree ofProgram Effectiveness .............................................................................................................................. 144 6.8: Benefit-Cost Ratios over Time for DrinkingWater DisinfectionProgram (20 Percent EffectivenessTarget .................................................................................................................. 144 ........................................................................... 7.2: Annual HealthCost of UrbanAir Pollution (billion pesos) ........................................................ 7.1:MeanAnnual ConcentrationofPMlo inCities 148 168 7.3: Annual Cost of Damageby Emission Source (low cost estimate) .............................................. 172 X 7.4: Annual Cost ofDamageby Emission Source (high cost estimate) ............................................. 173 7.5: DamageCostper Ton of PMlo (low costestimate) ..................................................................... 173 7.6: DamageCost per Ton of PMlo (high cost estimate) .................................................................... 174 8.1:Annual Costs of Indoor Air Pollution(billion pesos) ................................................................. 186 8.2: ProportionofDALYsAttributable to Indoor Smoke from Solid'Fuels ...................................... 8.3: ARI PrevalenceinChildren by Mother's Education Level......................................................... 186 188 8.4: StoveEfficiency andCapital Cost ............................................................................................... 193 8.5: StoveEfficiency froma Study inColombia ................................................................................ 194 8.6: SolidFuels as MainCooking FuelinLatinAmerica andCaribbean .......................................... 202 8.7: SolidFuelsas MainCookingFuelinRural LatinAmerica andthe Caribbean .......................... 202 9.1:Annual Gapbetween FormalHousing ........................................................................................ 208 9.2: SolidWaste GenerationinLatin American Cities 222 9.3: Compositionof Waste ................................................................................................................. ...................................................................... 223 11.1:Internal FreshwaterResources per Capita (cubic meters) 263 12.1:Fertilizer Consumption (100 gr./ha arableland) ....................................................................... ......................................................... 295 12.2: CAR Investment inLandIssues ................................................................................................ 299 13.1:NationalProtectedAreas (percent of land) ............................................................................... 317 13.2: Total COz EmissionsinColombia Comparedwith Other Countries ........................................ 328 Boxes 2.1.Colombia's NationalEnvironmental System ................................................................................ 19 11.1:Case Studyofthe Allocation ofWater Resourcesinthe Bogotd Savannah............................. 268 xi ABBREVIATIONS AND ACRONYMS AAU UrbanEnvironmental Authority AutoridadAmbiental Urbana ARI Acute respiratory illness ASOCAR Colombian Association o f Environmental Authorities Asociacidn Colombiana de Autoridades Ambientales BAMA Environmental AdministrationDepartment of Barranquilla Departamento Administrativo de Medio Ambiente deBarranquilla BOD Biochemical oxygen demand CAR Autonomous Regional Corporation (note that CAR is usedboth generically for all CARSandspecifically for the CundinamarcaCAR) Corporacidn Autdnoma Regional CDS Autonomous SustainableDevelopment Corporation Corporacidn Autdnoma de Desarrollo Sostenible CEA Country environmental analysis CEPAL Economic Commission for LatinAmerica andthe Caribbean Comisidn Econdmicapara Amdrica Latina y el Caribe CFC Chlorofluorocarbon CGSM Great Swamp of SantaMarta Cidnaga Grande de Santa Marta CNE National EmergenciesCommittee Comite'Nacional deEmergencias CNG CompressedNatural Gas CNPAD National Disaster Preparedness andResponseCommittee ComitdNacionalpara la Prevencidn y Atencidn deDesastres CNRN National Code for RenewableNatural ResourcesandEnvironmental Protection Cddigo Nacional deRecursosNaturales y deProteccidn a1Medio Ambiente co Carbonmonoxide COI Cost-of-illness COLPAD Local Disaster PreparednessandResponseCommittee Comite'Localpara la Prevencidn y Atencidn deDesastres CONAIRE National Intersectoral Technical Commission for Prevention andControl o f Air Pollution Comisidn Te'caicaNacional Intersectorialpar0 la Preiiencidnv el Control de la Contarninacidn delAire CONPES National Council on Economic and Social Policy ConsejoNacional dePolitica Econdmicay Social COP Colombian pesos COPD Chronic obstructive pulmonary disease coz Carbon dioxide CREPAD Regional Disaster PreparednessandResponseCommittee Comiti Regional para la Prevencidn y Atencidn de Desastres DALY Disability-adjusted life year DANE NationalStatistical Administration Department Departamento Administrativo Nacional deEstadisticas xiii DARNER Administrative Departmentof RenewableNatural Resources Departamento Administrativo deRecursosNaturales DGPAD GeneralDirectorate for DisasterRelief andPrevention Direccidn Generalpara la Prevencidny Atencidn deDesastres DHS Demographic andHealthSurvey DNP National Planning Department Departamento Nacional dePlaneacidn dS/m DeciSiemensper meter ECOPETROL Colombian PetroleumCompany Empresa Colombiana dePetroleos EEAB BogothWater and SewerCompany Empresa deAcueductoy Alcantarillado deBogota EIA Environmental Impact Assessment EMGESA Bogotl Energy Utility Empresa de Energia deBogota ESP MedellinPublic Utilities EmpresasPdblicas de Medellin FA0 Foodand Agriculture Organization FINAGRO Agricultural Sector Financial Fund Fondopara el Financiamiento del SectorAgropecuario FNC National Disaster Fund Fondo Nacional de Calamidades FONAM National Environmental Fund Fondo Nacional Ambiental Gcf Giga cubic feet GDP Gross domestic product GEF Global Environment Facility GHG Greenhousegas GIRHYS IntegratedManagement o fHospitaland Similar Waste GestidnIntegral deResiduosHospitalarios y Similares GNI Grossnational income GTZ Deutsche Gesellschaft fiir TechnischeZusammenarbeit hdyr Hectaresper year HC Hydrocarbon HCA Humancapital approach &So4 Sulfuric acid ICT Institute for LandCredit Instituto de Crkdito Territorial IDB Inter-AmericanDevelopment Bank IDEAM Institute o f Hydrology, Meteorology, and Environmental Studies Instituto deHidrologia, Meteorologiay Estudios Ambientales IGAC Agustin Codazzi Geographic Institute Instituto GeograjkoAgustin Codazzi EnvironmentalResearchInstitute ofthe Pacific Instituto deInvestigaciones Ambientales del Pacific0 xiv INCODER Colombian Institute o fRuralDevelopment Instituto Colombiano deDesarrollo Rural INDERENA National Institute ofRenewableNaturalResources Instituto Nacional de 10s RecursosNaturales Renovables INPA National Institute of Fishing andAquaculture Instituto Nacional de Pescay Acuicultura INS National Institute of Health Instituto Nacional de Salud INSFOPAL Institute for Municipal Development Instituto deFoment0 Municipal INURBE National Institute of Social Housing andUrbanReform Instituto Nacional de ViviendadeInteris Socialy Reforma Urbana INVEMAR Instituteo fMarineandCoastalResearch Instituto deInvestigacionesMarinasy Costeras IPCC Intergovernmental Panelon Climate Change IPPS IndustrialPollution Projection System IUCN World ConservationUnion JICA JapanInternational Cooperation Agency LPG Liquefiedpetroleum gas YS perkmz Liters per secondper square kilometer MARD MinistryofAgriculture andRuralDevelopment Ministerio deAgricultura y Desarrollo Rural MAVDT MinistryofEnvironment, HousingandRegional Development Ministerio deAmbiente, Vivienday Desarrollo Territorial MDGs MillenniumDevelopment Goals Pdm3 Microgramsper cubic meter MMA MinistryofEnvironment Ministerio del MedioAmbiente MMcfd Million cubic feet per day MME MinistryofMines andEnergy Ministerio deMinas y Energia m3/s Cubic metersper second M W Megawatt NGO Nongovernmental organization NNPS NationalNatural Park System NO2 Nitrogen dioxide NOX Nitrogen oxide NPA NationalParksAuthority NPAS NationalProtectedAreas System O&M Operation.andmaintenance 0 3 Ozone OAD Obstructive airways disease ODS Ozone-depleting substance OECD Organization for Economic Co-operation andDevelopment xv ONPAD NationalDisasterPreparedness andResponseOffice Oficina Nacionalpara la Prevencidn y Atencidn de Desastres PAHO PanAmerican HealthOrganization PAT Three-YearAction Plan Plan deAccidn Trienal PCB Polychlorinatedbiphenyl PCF Prototype Carbon Fund P D M Municipal Development Plan Programa deDesarrollo Municipal PDT Territorial Development Plans Plan deDesarrollo Territorial PGAR Regional Environmental ManagementPlan Plan de GestidnAmbiental Regional PGIR Municipal Integrated Solid Waste ManagementPlan Plan de GestidnIntegral deResiduosSdlidos PHRD Japan Policy andHumanResourcesDevelopment Fund PLEC LocalEmergencyandContingencyPlan Plan Local de Emergenciay Contingencia P M Particulate matter PM2.5 Particulate matter less than2.5 microns indiameter PMio Particulate matter lessthan 10microns indiameter PNPAD NationalDisaster Preparedness andResponsePlan Plan Nacionalpara la Prevencidn y Atencidn deDesastres POIA Annual Investment Operating Plan POMCA WatershedAdministration andManagementPlan Plan de Ordenamientoy Manejo de la Cuenca POP Persistentorganic pollutant POT LandUse Plan Plan de Ordenamiento Territorial PPM Partsper million PSP Private sector participation Ramsar TheRamsarConvention onWetlands RFF Resourcesfor the Future RNSC Civil Society Natural Reserves Red Colombiana deResewasNaturales de la SociedadCivil RR Relative riskratio RRSC Civil Society ReservesNetwork Red Colombiana deResewas de la Sociedad Civil SEA Strategic environmental assessment SENA National LearningService Servicio Nacional deAprendizaje SIAC Colombian Environmental Information System Sistemade Informacidn Ambiental de Colombia SINA National Environmental System SistemaNacionalAmbiental xvi SINCHI Amazonian Institute for Scientific Research Instituto Amazdnico de Investigaciones CientiJicas SIRE Information Systemfor Risk Managementand EmergencyResponse Sistemade Informacidn para la Gestidnde Riesgosy Atencidn de Emergencias SISAIRE Air Quality Information System SistemadeInformacidn sobre CalidaddelAire SITM IntegratedSystems for Mass Transportation SistemaIntegrado de TransporteMasivo SNCyT National Systemo f ScienceandTechnology SistemaNacional de Cienciay Tecnologia SNPAD National Disaster PreparednessandResponse System SistemaNacional de Prevencidny Atencidn de Desastres so2 Sulfur dioxide SSPD Office o f the Superintendentof Domestic Public Services Superintendencia de Sewicios Pliblicos Domiciliarios Telecom The state-ownedtelecommunications company TOU Technical OzoneUnit TSP Total suspendedparticles TSS Total suspendedsolids TVA TennesseeValley Authority UAESPNN Special Administrative Unit for the NationalNatural Parks System UnidadAdministrativa Especial del Sistemade Parques Nacionales Naturales UNDP UnitedNations Development Programme UNEP UnitedNations Environment Programme UNESCO UnitedNationsEducational, Scientific andCulturalOrganization UNFCCC UnitedNations Framework Convention on Climate Change UNICEF UnitedNations Children's Fund UNIDO UnitedNations IndustrialDevelopment Organization UPME Mining andEnergy Planning Unit Unidadde Planeacidn Minero Energktica USAID UnitedStates Agency for International Development USEPA UnitedStates Environmental Protection Agency uv Ultraviolet VAT Value-added tax VIS Social Interest Housing Vivienda de Interks Social voc Volatile organic compound VSL Value o f statistical life WHO World Health Organization xvii .. .......... AutonomousRegional Corporations ................. .... CAM Corporacih Authoma Regionaldel Alto Magdalena CAR CorporacibnAut6nomaRegionalde Cundinamarca CARDER Corporacih Aut6nomaRegionalde Risaralda CARDIQUE Corporacih Authoma Regionaldel Dique CARSUCRE Corporacih AutdnomaRegionalde Sucre CAS CorporacibnAut6nomaRegionalde Santander CDMB Corporacih Authoma Regionalde Defensade la Mesetade Bucaramanga CORANTIOQUIA CorporacibnAuthoma Regionaldel Centrode Antioquia CORNARE CorporacibnAutbnomaRegionalde las Cuencas de 10s RiosNegro y Nare CORPAMAG Corporaci6nAuthoma RegionaldelMagdalena CORPOBOYACA CorporacibnAutQoma Regionalde Boyach CORPOCALDAS CorporacibnAuthoma Regionalde Caldas CORPOCESAR CorporacibnAut6nomaRegionaldel Cesar CORPOCHIVOR Corporacih AutonomaRegionalde Chivor CORPOGUAJIRA Corporacih Aut6nomaRegionalde la Guajira CORPOGUAVIO Corporacih Aut6nomaRegionaldel Guavio CORPONARIRO CorporacibnAutonomaRegionalde Nariiio CORPONOR CorporacibnAut6nomaRegionalde laFronteraNororiental CORPORINOQUIA Corporacih AutQoma Regionalde la Orinoquia CORTOLIMA Corporaci6nAut6nomaRegionaldelTolima CRA CorporacibnAutbnomaRegionaldelAtlhtico CRC CorporacibnAut6nomaRegionaldel Cauca CRQ Corporacih Aut6nomaRegionaldel Quindio CSB Corporacih AutbnomaRegionaldel Sur de Bolivar cvc Corporacih Authoma RegionaldelValle del Cauca cvs _. . .._"._I........... Corporacih Aut6nomaRegionalde 10sValles del Sinhy San Jorge .................................. .-- . ..... Sustainable Development Corporations. ...... . . (_(( ......... . . . . . . . . .._ ._ ~ CDA Corporacihparael DesarrolloSostenibledelNorte y OrienteAmmhico CODECHOCO Corporacihparael DesarrolloSostenibledel Choc6 CORALINA Corporacibnparael DesarrolloSostenible delArchipitlago de SanAndrks, Providenciay SantaCatalina CORMACARENA Corporacihparael DesarrolloSosteniblede laMacarena CORPOAMAZON~A Corporacih parael DesarrolloSostenible del Sur de laAmazonia CORPOMOJANA Corporacionparael DesarrolloSostenible de La Mojana y SanJorge _._ CORPOURABA ........ ........._....."..._ Corporacibnpara.el DesarrolloSostenibledelUrabh .. -.. . . . .- . . . . . . . . . . .." . . . . . Autoridades Ambientales Urbanas . _. ..~ . AMVA Autoridad Ambiental Urbanadel AreaMetropolitana del Valle de Aburrh DADMA DepartamentoAdministrativo de Medio Ambiente Santamarta DAGMA DepartamentoAdministrativo parala Gesti6ndelMedioAmbiente, Cali DAMA DepartamentoAdministrativo de Medio Ambiente, Bogoth DAMAB DepartamentoTtcnico Administrativo delMedio Ambiente de Barranquilla EPA EstablecimientoPhblicoAmbiental de Cartagena xviii ACKNOWLEDGMENTS This report was preparedby ateamledby Ernest0 Shchez-Triana(LCSEN) andKulsumAhmed (ENV). The core team included: Yewande Awe, Peter M. Brandriss, Angela Armstrong, and Carolina Urmtia Vdsquez, (LCSEN); David L e Blanc (TUDUR); Bjorn Larsen and Michelle Falck (Consultants); and Allen Blackman and Richard Morgenstern (Consultants, Resources for the Future). The principal editors were Peter Brandriss, Janice Molina, and Diane Stamm. The extended team included Abel Mejia and EthelSennhauser (LCSES); DavidRosenblatt(LCSPR); Laura Kullenberg(LCCl), JuanDavidQuintero, Juan Pablo Ruiz, and Andrea Semaan (LCSEN); Masami Kojima (COCPO); Maureen L. Cropper (DECRG); Elisson Wright (ENV); Rachel Kaufmann and Rick Gelting (HDNHE-CDC); Menahem Libhaber (LCSFW); Santiago Sandoval and Gloria DeHaven (LCSES); Charles Di Leva (LEGEN); Juan Benavides and Javier Cuervo (Inter-American Development Bank); Sandra Hoffmann and Elizabeth Topping (Consultants, Resources for the Future); Francisco Canal (Consultant, ASOCAR); Leonard Ortolano (Consultant, Stanford University); Ana Maria Ibafiez and Eduardo Uribe (Consultants, Universidad de Los Andes, Bogoth); Carlos Lemoine and Monica Lemoine (Consultants, CNC); and Enrique Pefialosa, Albert0 Brugman, Angel Sterling, Alejandro Deeb, and Santiago Enriquez (Consultants), The peer reviewers for the study include Magda Lovei (EASES), Kseniya Lvovsky (SASES), Ani1Markandya(ECSSD), andJuan CarlosBelausteguigoitia (LCSEN). The Government of Colombia, mainly through the Ministry of Environment, Housing and Territorial Development (MAVDT), the Ministry of Social Protection (MPS), andthe NationalPlanning Department (DNP), provided key feedback during the preparation of the study. The following government officials were particularly helpfulinproviding comments and insights to the task team: Sandra Suhrez (MAVDT); Eduardo JosC Alvarado (MPS); Alejandro Gaviria and Miguel Silva (DNP); Astrid Alvarez, Juan P. Bonilla, Oscar Dario Amaya, Pedro Chavarro, Diana Gaviria, Simona Herrera, Leonardo Muiioz, Leonardo Pinzh, and Gerard0 Viiia (MAVDT); Oscar Alvarez (CORNARE); Francisco Zapata (Corantioquia); Gloria Lucia Alvarez (Cundinamarca CAR); Vilma Fabiola Izquierdo (National Health Institute); and Carlos Costa, Gonzalo Arango, Nelsy Verdugo, and Gloria Zapata (IDEAM). Important feedback was also received from members of the Colombian Congress during the workshops in Bogotb. The team is particularly grateful to the Japanese Government for its support of some of the studies that underpinthis report through PHRD funds. xix MIT1GAT1NG ENVlRONMENTAL DEGRADATIONTO FOSTER GROWTHAND REDUCE INEQUALITY EXECUTIVESUMMARY 1. Over the last five decades, Colombia has made substantial progress inprotecting its environment. This includes restructuring its legal and regulatory landscape, undertaking policy initiatives, and strengthening its capacity for protecting and managing its natural resources and environmental quality, and establishing a system o f national parks and forestry reserves that covers more than a quarter of the country. Colombia's environmental management framework has focused on three main environmental priorities: (a) river basin management and conservation o f water resources, (b) reforestation, and (c) conservation o f biodiversity. During 19942005 the total value of investments by Autonomous Regional Corporations (Corporaciones Autdnomas Regionales, CARS) amounted to about US$2 billion. Approximately 60 percent o f investments were directedmainly at water andforestry interventions. 2. The analysis of the cost o f environmental degradation conducted as part o f the Country Environmental Analysis (CEA), shows that the most costly problems associated with environmental degradation are urban and indoor air pollution; inadequate water supply, sanitation and hygiene; natural disasters (such as flooding and landslides); and land degradation (Figure 1). The burden o f these costs falls most heavily on vulnerable segments o f the population, especially poor children under age five. The effects o f environmental degradation associated with these principal causes are estimated to cost more than 3.7 percent ofGDP, mainly due to increasedmortalityandmorbidity anddecreasedproductivity.' To identify alternatives aimed at abating the cost o f environmental degradation, this CEA examines institutional andpolicy issues inthe functioning o f the country's environmental management system and suggests some cost-effective interventions. Figure1:AnnualCost ofEnvironmentalDegradation(YOofGDP) 1 0% 0.8% 0.6% 0.4% 0.2% 0.0% Water Sanitation Natural Disasters UrbanAir Pollution Land Degradation IndoorAir Pollution Hygiene ' Estimates o f social and economic costs of environmental damage in Colombia are based on the national estimates presentedinLarsen(2004a). Although the analysisofthe cost ofenvironmental degradationreliedextensivelyon large sets ofstatistics anddata fromvarious ministerial departments, institutions, andinstitutes inColombia, the analysiswas restricted by data limitations (Larsen, 2004a). Costs of deforestation and water pollution are only partially and indirectly estimated due to data limitations. Some o f the cost of deforestation is captured in the cost o f natural disasters (flooding, landslides) and agricultural land degradation insofar as deforestation contributes to natural disasters and soil erosion. Other costs of deforestation, such as impacts on water resources and recreational value, are not estimated. The cost of water pollution is captured only in terms o f waterborne (diarrheal) illnesses. Other costs, such as potential impacts o f heavy metals and chemicals on health and recreational value, or biodiversity loss are not estimated. xxi 3. The analysis o f environmental expenditures shows that current expenditures can be better aligned with the priorities o f lower-income groups or with the most pressing problems associatedwith the cost o f environmental degradation (Canal 2005)' In2001, CARS allocated 28 percent o f their investment funds to projects involving protection o f flora and fauna and only 5 percent to pollution control projects other than wastewater treatment plants (Canal 2005). Although data are limited and must be interpreted cautiously, they suggest that the highest proportion o fCAR investments have focused onthe construction ofwastewater treatment plants, water basin management, reforestation, andconservation (Blackman andothers 2005a). 4. The results o f a 2004 survey o f public perceptions about environmental problems in Colombia, which includeda sample o f 2,600 individuals from a wide range o f regions, sectors, government agencies, civil society organizations, and ethnic groups (CNC 2004), complemented the analysis o f the cost o f environmental degradation. Approximately 80 percent o f respondents identified air pollution as the top environmental problem, but there were significant differences in the perception o f priorities among income groups. Whereas low-income groups identified air pollution, noise, andnatural disasters as major problems, upper-income groups tended to perceive global environmental impacts (such global warming Adloss ofbiodiversity) andinappropriate landuseinurbanareasashighpriorities. InadequateWater Supply, Sanitation, and Hygiene 5. Although Colombia has achieved substantial reductions inchildmortality from diarrhea andother diseases, the costs associated with diarrheal morbidity from contaminated water andpoor hygiene inboth children and adults remain high. The poorest groups often lack adequate sanitation and water supply services. About 9 percent o f the population does not have access to an improved water source, and the lack o f sewerage in20 percent o f urbancenters is a serious environmental problemfor the country. These results are largely attributable to the absence o f explicit cross-sectoral policies to reduce waterborne disease^.^ The proportion o f disability-adjusted life years (DALYs ) ~in Colombia that are attributable to unsafe water is inthe 1-1.9 percent range, the same range as the rest o f Latin America, with the exception of Bolivia, Ecuador, Guatemala, Peru, andNicaragua, where the proportion i s higher (WHO 2002). 6. Larsen (2004a) estimates the health benefits of water supply and sanitation service provision based on a cost o f diarrheal illness o f 25,000 pesos per case averted and a cost o f US$58,500 per death averted inrural areas.' An analysis o f alternative interventions to address waterborne diseases shows that Estimates ofpublic environmental expenditureinColombiaare basedon apublic environmentalexpenditurereview preparedbyCanal(2005). According to government information (DNP, CONPES 3343,2005:10), "28 percent ofmunicipalities lack potable water services and 40 percent do not possess sewerage connections. Sewerage coverage levels increasedbetween 1980 and 2005." Analysis conducted by the government (MAVDT 2006:2) indicates that "although national budgetaryresourceshave been directedtoward addressing these coveragedeficiencies, there have beenproblems in the efficiency and execution of resource expenditures, which is not to say that policies aimed at addressing the problemofbasic sanitationinColombiado not exist." DALYs are a standard measure of the burdenof disease. DALYscombine life years lost as aresult of illness and 'disability,with one DALYbeingequal to the loss ofone healthylife year (Murray andL6pez 1996). Data series published by the National Statistical Administration Department (DepartamentoAdministrativo Nacional de Estadisticas, DANE) indicate that about 7.3 percent of child mortality is from diarrheal illness. For diarrhealmorbidity, however, it is very difficult or practically impossibleto identify all cases of diarrhea. The main reason is that a substantial share of cases is not treated or does not require treatment at health facilities, and i s therefore never recorded. A second reason is that cases treated by private doctors or clinics are most often not reportedto public healthauthorities.Therefore, householdsurveys often provide the most reliable indicator of total cases of diarrheal illness. However, most household surveys contain only information on diarrheal illness in children. Moreover, the surveys only reflect diarrhealprevalence at the time of the survey. Because there is often high variation in diarrheal prevalence across seasons of the year, extrapolationto an annual average will result in xxii the most effective intervention in Colombia would be the design and implementation o f a safe water program to promote hygienic behavior through handwashing and improvements in water quality at the point o f use (Larsen 2005). Urban and Indoor Air Pollution 7. Air pollution is one of the most widespread and serious problems in Colombia's cities and rural areas. Although air pollution levels are moderate in most cities, the fact that close to 50 percent of the population lives in cities with more than 100,000 inhabitants creates substantial aggregate health effects, associatedmainly with particulate matter. This results in healthimpacts such as cardiopulmonary diseases and lung cancers in adult segments o f the population, andacute respiratory illness, particularly inchildren, including death from related diseases such as pneumonia. Analysis reveals that most o f the associatedcost o f urbanair pollutionis linkedto mortality andmorbidity. Approximately 6,000 premature deaths occur per year due to outdoor air pollution.6An estimated 1,100 premature deaths are related to exposure to indoor air pollution, associatedwiththe use o ffuelwood, charcoal, andother solidfuels used for cooking? 8. Urbanair pollutionresulting fiomtransportation and industry hasworsened andis most criticalin the country's industrial corridors, such as Bogoti-Soacha, Cali-Yumbo, Medellin-Valle de Aburri, Sogamoso, and Barranquilla. According to MAVDT (2006:2), "particulate matter concentrations affecting public health present the greatestprobleminthe Puente Aranda, Kennedy, andFontib6nareas o f Bogotl." With respect to indoor air pollution, there are no reliable time series data. Nonetheless, indoor air pollution and the health problems associated with it continue to pose challenges. Comparisons between the annual mean concentrations o f particulate matter less than 10 micros (PMlo) in Colombia's main cities and those o f other urban centers must be made with caution, due to the complexities and challenges associated with the measurement o f these pollutants. In many cases, the cities have a monitoring network in which concentrations vary widely from one station to another or fiom one time period to the next, and thus the mean value may not accurately reflect the severity o f air pollution. Yet a first approximation suggests that PMlo concentrations in Bogoth are similar to those o f other Latin American cities with severe air pollution, includingMexico City and Santiago (World Bank 2005b). The differences in mean PMlo concentrations are much more obvious when compared with those o f cities outside the region. Cities with larger industrial production and transportation sectors, such as Los Angeles, Tokyo, or Rome, have successfully reduced their ambient concentrations to a level that is lower thanthose ofMedellinandBucaramanga (Figure 2). 9. The analysis indicates the need to update regulations andissue standardsandeconomic instruments that minimize the concentration o f fine particulate matter in the air. In order to achieve this, some o f the most promising options include reduction in the sulfur content o f fuels and control o f emissions fkom stationary and nonpoint sources, including the burning o f agricultural residues. With respect to indoor air pollution, possible options include the use o f cleaner fuels, technical mitigation options such as improved cooking stoves, andpolicies that promote improvedhousingdesign. Furthermore, there is a needto increase allocationo ffinancial resourcesto effectively address air pollutionissues. either an over- or underestimate of total annual cases. It is often difficult to correct this bias without knowledgeof seasonal variations. Morbidity and mortality estimates are based on the risk ratio, or dose response coefficients by Pope and others (2002). Pope and others (2002) found a statistically significant relationshipbetween levels of PM2.5and mortality rates; all-cause mortality increasedby 4 to 6 percentfor every 10 microgramsper cubic meter (pg/m3)increase in PM2.5 Smith (2000) provides a review of research studies around the world that have assessedthe magnitudeof health effects of indoor air pollution from solid fuels use. The odds ratios for A M and COPD used for estimating helath risks associatedwith indoor air pollutioninColombiaare basedon Smith(2000). xxiii Figure2: PMloAverageAnnualConcentrationsinSelectedCities(pg/m3) Source:World Bank (2005b). NaturalDisasters 10. Colombia is vulnerable to natural disasters such as floods, droughts, and earthquakes, averaging 2.97 natural disasters per year, the third-highest rate among the 19 countries in the region. The largest number o f natural disasters is related to floods and landslides. Insufficient drainage and the disposal o f garbageinnaturalchannels inmost urbanareas are important factors contributingto urbanflooding. Inthe last quarter century the country experienced six major earthquakes, three volcanic eruptions, three landslides, andthree avalanches, with significant costsinterms ofhumanandphysical capital. Itis estimatedthat more than 4 million Colombians were affected by natural disasters during 1993-2000, at an annual cost o f approximately US$453 million (Echeveny Garz6n 2002). In addition, it is estimated that 30,000 deaths were caused by these natural disasters, the third-largest figure for Central and South America. The occurrence o f these events has resulted inlosses o f more than $4.5 billion, or 11.5 percent o f the country's 1995 GDP. The poorest and most susceptible have paid the highest costs for these disasters in damages, deaths, and lost assets. To address this problem, comprehensive actions are needed, including the adoption o fnonstructural measuresto prevent humansettlementsinareas o fhighvulnerability to natural disasters. UrbanEnvironmentalManagement 11. Urban environmental issues include two main sets o f problems associated with housing, urban planning, and waste management. The three main actions suggested by the CEA to mainstream environmental considerations in urban planning and housing policies include (a) streamlining environmental issues in Land Use Plans (Planes de Ordenamiento Territorial, POTS); (b) preventing informal settlement in areas prone to floods, landslides, and other natural disasters; and (c) designing housing subsidy programs to reduce indoor air pollution andother forms o f environmental degradation. 12. More than 700 open garbage dumps and inadequate waste disposal sites are located in municipalities throughout Colombia where public waste collection and disposal services are deficient. Very few o f the nation's registered landfills operate effectively; in most cases, open garbage dumps and uncontrolledlandfillsthreaten surface andgroundwater insurrounding areas.8Deficiencies inthe design and According to government information (DNP, CONPES 3343,2005:10), the majority o f Colombia's municipalities "dispose of their solid waste by discharging wastes in open garbage dumps or in surface waters, or by burying or openly burningwaste." The government considers"the primarydifficulties inthe disposal o fsolidwastes to include: (i)inadequate municipal planning with respect to the useful life of landfills, the assignment o f resources, and the xxiv enforcement o f environmental regulations and weak interinstitutional mechanisms for ensuring closure o f open dumps and construction o f adequate waste disposal sites have resulted inpervasive poor municipal waste disposal practices inC~lombia.~Typically, the poorest live closest to open dumps andbadly designed andoperated landfills,whichposebothenvironmental andhealth risks. Underscoring these challenges is the increase inshantytowns andinformal housing inareas most susceptible to risks o fnatural disasters. This has resulted in increased vulnerability for greater numbers o f poor people. Suggested actions to address these issues include the development o f policies to operate effective regional waste disposal sites and the establishment andenforcement o fregulations to segregateandtreat hazardouswastes. Water Resources Policies 13. Water resources are abundant in Colombia. It has a national average freshwater supply o f more than 59 liters per second per square kilometer (Ys per h2), a figure that is nearly three times larger than that of other LatinAmerican countries, where the average is 21 Ys per km2. 14. Inrecent years there has been significant progress inwatershed management and recovery of wetlands at the national and local levels. At the national level, the program to rehabilitate the CiBnaga Grande de Santa Marta restored the ecosystem functions o f one o f Colombia's largest wetlands. At the local level, achievements have likewise been impressive. For example, in the late 1990s the municipal government in Bogoth implemented a comprehensive program to improve the quality o f life in the city that included ecological restoration o f the Juan Amarillo and El Salitre wetlands, complete with environmentally sensitive pedestrian walkways andbicycle paths, andthe buildingor rebuilding o f 1,243 parksthat are visitedby more than 1.5 millionpeople annually. 15. Achievements inwastewater treatment include construction o f new treatment plants inthe cities o f Medellin and Bucaramanga. InMedellin, the total cost o f the program is about US$440 million, including construction o f wastewater treatment plants in San Fernando and Bello. The Corporacicin Aut6noma Regional de Defensa de la Meseta de Bucaramanga (CDMB) developed an upflow anaerobic sludge bed treatment plant that removes more than 50 percent o f biochemical oxygen demand (BOD) and total suspended solids. In addition, in the Bogota Savannah, the Cundinamarca CAR has spent around US$50 million to buildwastewater treatment plants for 21municipalities inthe upper BogothRiver watershed, 16. Recommendations to further strengthen the water sector's performance include: (a) improving the existing regulations to control water pollution, including water pollution fees; (b) restructuring economic instruments to improve efficiency and equity; and (c) improving water quality standards for human consumption, recreational uses, and irrigation." Likewise, strategies are advisable for the formulation, socialization, and implementationo f programs for accountability, transparency, and governance to promote compliance with water quality standards. lack of an organized system to charge users for services; (ii)insufficient knowledge regarding the impacts of inadequate disposal on public health and quality of life (harmful gases, increased illnesses, and polluted water bodies, soils, and ecosystems); and (iii) are inconsistentwith the capacity ofmunicipalities(DNP, CONPES3343,2005: lo)." technical, operating, and planning specificationsin the current norms that Title F of Resolution No. 1096 (Technical Regulations for the Potable Water and Basic Sanitation Sector) establishes technical specificationsfor the final disposal of waste in sanitary landfills. Inaddition, Decree 838 of 2005 determinesanumber ofcriteria for the location ofwaste disposalsites. lo InColombia, diverse economicinstruments havebeen developedfor the provisionofpotablewater andsewerage services and to improve water resources management, including "a tariff system for public water and sanitation services, charges for water usage, and pollution charges (MAVDT, 2006:3)." According to MAVDT (2006:3), in order to address the weaknesses and needed improvements of current economic instruments aimed at controlling pollution, the proposedWater Law presentedto Congressin2005 includesstructuralreformssuch as the redesignof water usage charges andwaterpollution charges. xxv SoilDegradationand Deforestation 17. Although problems associated with land degradation, particularly soil erosion, have exacerbated over time, they are comparable to those o f other countries where a similar analysis has been performed (Figure 3). The two most salient components o f land degradation in Colombia are: (a) erosion and salinization; and (b) problems associated with deforestation. The need to improve interinstitutional coordinationto address the problems o f land degradation is evident. 18. Colombia has evolved rapidly over the past 50 years from being a country with a largely rural economy to one that is highly urbanized and more economically diverse. With a strong tradition o f development planning, environmental priorities have been on conservation o f biodiversity and renewable natural resources, with impressive results. For instance, the system o f national parks and forestry reserves encompasses nearly one-quarter of the national territory. In addition, deforestation rates, which stood at about 600,000 hectares per year in the 1970s and early 1980s, were reduced to an average o f 145,000 hectaresper year during 1986-96 (IDEAM 1998:295). Combined with an increase in secondary forests of nearly 3.5 million hectares, there was actually a net gain inforest cover o f 3.3 million hectares in 10 years (IDEAM 1998:295). By 2004, IDEAMestimated a deforestation rate of 91,932 hectares per year (0.18 percent), which is similar to countries such as Peru but significantly lower than the average for Latin America and the Caribbean (0.5 percent), and significantly lower than countries such as Ecuador, El Salvador, Panama, andMexico (IDEAM2004; SIAC 2002, The World Bank2005). 19. The analysis suggests that reforestation investments by departments, municipalities, environmental authorities, and CARs have minor impacts on erosion control or regulation o f water streams." Congress is Figure 3: Economic Cost of Soil Degradation inSelected Countries I Costs of EnvironmentalDegradation(Erosionand Salinity) I -.- Egypt Syria Colombia Algeria Jordan Tunisia Lebanon Morrocco Sources: Tunisia and Lebanon: Sarraf, Larsen, and Owaygen (2004); Algeria: Ministere de 1'Amtnagementdu Territoire et de 1'Environnement(2002); Egypt:World Bank (2002); Morocco: World Bank(2003): Syria: Serraf, Bolt, andLarsen(2004); Jordan: METAP(2000). Accordingto MAVDT (2006:3), "since 1994the Ministry, supportedby IBRDand IDBfinancing, has carriedout reforestation programs that have required effective coordinationamong regionalenvironmentalauthorities, territorial entities, and civil society. These reforestationprograms have centeredon protectingwatersheds andnot on controlling erosion. However, environmental authoritiesfrom some regions (Caldas, Antioqda, Cundinamarca) have investedin controlling soil erosion for decades. Although the government has not directed national resources toward preventing erosion, whichhasbeeneffectivelymanagedat the regionallevel, this does not imply that coordinationdoes not exist. It should be kept inmind that there are considerableinvestments inthis area, and that budgetary restrictionsandthe needto attendto other prioritieshave limitedthenationalgovernmentinaddressingthis area." xxvi currently discussing a national forestry law. Several stakeholdershave recommended incorporating into the billprovisionsto securethe rights ofindigenous peoplesandsmallfarmers. GlobalEnvironmental Problems 20. Some o f the most salient global environmental problems in Colombia are biodiversity loss, climate change, and ozone depletion. The area covered by the national parks represents close to 10 percent o f the national territory. In comparison with four other mega-diverse Latin American countries, andcountries inother latitudes, the percentageofprotected landis considerable (Figure 4). 21. While progress has been achieved in the creation o f national parks, there is a need to further their success and guarantee their sustainability. To that end, legislation could be improved by increasing the importance o f local economic, cultural, and social realities and expectations to ensure that the rights o f local stakeholders are not harmed. Protected areas legislation has in some cases limited the use o f traditional production systems and natural resources by local inhabitants. To overcome this the government is considering puttinginplace institutional mechanismsto prevent andresolve conflicts between conservation interests andother social priorities, such as regional, social, andeconomic development. 22. Regarding biodiversity, climate change, and ozone depleting substances, Colombia has taken advantage o f financial mechanisms such as the Global Environment Facility (GEF), the Prototype Carbon Fund (PCF), and the Montreal Protocol to finance private investments aimed at reducing emissions of greenhouse gas (GHG) andozone-depleting substances(ODs). InstitutionalStrengthening 23. The Constitution o f 1991 and Law 99 o f 1993, which created the National Environmental System (Sistema Nacional Ambiental, SINA), reinforced the rights o f every citizen to a clean and healthy environment. The SINA defines the roles o f multiple stakeholders, including a central-level ministry Figure 4: Percentage of Land with Protected Areas inSelectedCountries Nationally ProtectedArea (YOof land) Source: WorldBank (2005a). xxvii responsible for overall policy formulation and coordination, Autonomous Regional Corporations (Corporaciones Autbnomas Regionales, CARS), and Urban Environmental Authorities (Autoridades Ambientales Urbanas, AAU) responsible for environmental enforcement andwater resources development, andresearchcentersresponsiblefor collectinganddisseminating environmental data(Figure 5). 24. The SINA provides for a strong structure of multiple stakeholder involvement, decentralized management, and financial independence. Coordinating such a decentralized system poses significant challenges, including technical capacity, efficient regulations, enforcement, sufficient data, andmechanisms for public participation. The development of a system to identify environmental priorities and a mechanism to increase accountability o f CARSare key steps to improving the SINA's effectiveness andefficiency. 25. The government has begun to address these challenges through a results-based framework to hold CARSaccountable for their three-year action plans. Presidential Decree 1200 o f 2004 established a system o f indicators to measurethe impacts andresults o f environmental investments at the regional levelthat links the Ten-Year Regional EnvironmentalManagement Plans (Planes de GestidnAmbiental Regional, PGARS) andThree-Year Action Plans (Planes de Accidn Trienal, PATS)that eachCAR is requiredto submit to the SINA. The PGARs provide a description o f the principal challenges (e.g., social, economic, cultural, physical) facing the region, the CAR'S strategy for managing environmental resources, financial requirements, andpotentialsourceso ffinancing, andtools for monitoring andevaluating the program. Conclusions 26. The highest costs of environmental degradation in Colombia are, in decreasing order o f magnitude, waterborne diseases, urban air pollution, natural disasters, land degradation, and indoor air pollution. Combined, these environmental problems cost 7 trillion pesos, or 3.7 percent o f Colombia's GDP (Larsen 20O4a).l2 The poor andvulnerable populations bear a disproportionately highamount o f this cost. To address these problems, this report identifies a number o f cost-effective policy interventions that couldbe adopted inthe short andmediumterms to support sustainable development goals. 27. Inrecent decades, there has been considerable progress inaddressing the water andthe forestry environmental agenda. The impact o f environmental degradation on the most vulnerable groups suggests the need to increase emphasis on environmental health issues.I3However, the environmental management agenda has yet to catch up with this shift inpriorities from watershed and forestry to environmental health problems because mechanisms in the current institutional structure to signal these changes are not yet in place.I4 Improved monitoring and dissemination o f information on environmental outcomes, assignation o f accountabilities for environmental actions and outcomes, and involvement o f a broad range o f stakeholders are three important mechanisms to allow these signals to bepickedup. 28. The mainpolicy options o fthe report are summarized inTable 1. " Althoughtheanalysisreliedextensivelyonlargesetsofstatisticsanddatafromvariousministerial departments, institutions, andinstitutes inColombia, the analysiswas restrictedby datalimitations (Larsen2004a). l3 The recommendation o f assigning a higher priority to the environmental management actions that provide the greatest benefits to the most vulnerable segments o f the population does not imply that the areas o f forestry and water basinmanagementshould be removed from the environmental agenda. l4 For MAVDT (2006:3), "the limitations o fthe analysis conducted andthe fact that quantitative assessmentsof the impact of watershed management and reforestation actions in Colombia are not included in the analysis do not permit the Ministryto conclude that less priority shouldbe placedon allocating resourcesto these areas." xxviii Table 1. Main Policy Options of the Report Key issue Mainpolicy options Needfor strategic and 0Designandimplement apolicy (through laws andregulations) to set environmental systematic tools for priorities at the national, regional, andlocal levelsbasedon learning mechanismsto priority setting periodically review andlearn fiomthe experiences ofimplementing environmental policies. 0Installandimplement systemsto monitor andevaluateenvironmentalmanagementand the extentto which the objectivesof environmentalpriorities are efficiently met. 0Periodic evaluationsofprogressonthe implementationofpolicies to tackle environmental priorities withthe supportofthe accumulationofdata, results, andexperiences achieved through intersectoralcoordinationandlearning. __ll,.. __I.._ _I.._ " Needfor strengthening Mainstream environmentalconsiderationsinpolicy formulation by strengtheningSINA institutions' capacity to institutions' capacityinpriority areasthrough, for example, strategic environmental address environmental assessmentsin(a) environmentalhealth, (b) vulnerability to naturaldisasters, and(c) priorities, particularly in sustainableurbandevelopment. environmental health .............................................. . . . . . ... . . . . . . . . . . . Highcost of 0Design andimplement a "safe water" programthat includescomponentsdealingwith environmental handwashing andpoint-of-use disinfection ofdrinkingwater. degradation associated Facilitate private sector participation inwater supplyandsanitation. with waterborne diseases 0Modify water pollution fee system(tmasretribufivm)to promotethe constructionof sewage collection systems. 0Formulate andimplement actionsto promote compliancewith drinkingwater quality standards. 0Modify laws andregulationsonparameters o feffluent standards so thatpathogensand toxic andhazardoussubstancesare regulated. Highcost o f Reviseandestablishnational standardsfor PM2.5andPMlo inpriority urbanareas and environmental updatemajor emissionstandardsfor mobile andnonpoint sourcesto reflect new scientific degradationassociated andtechnological advances. with air pollution 0Implement air pollution control interventions,suchas promoting the improvement offuel qualityintransportandindustry sectors, expandingthe use ofnaturalgasto replacecoal andoil, andestablishingemissions control from stationary, mobile, andnonpoint sources. 0Implement anair quality monitoring programto monitor PM2.5andPMlo inpriority urban areas. 0Implement andenforceregulations(including Resolucihn 0532 of2005) to control air pollution emissionsandappropriatemonitoringmethodsfor "green cut" ofsugarcane. (Green cut refersto usingmanualor mechanicalmethodsto remove sugarcaneinsteadof burningout the fields for planting.) 0Reformthe compliance andenforcementsystems includingthe adoption o f amore severe penalty system. Introducemore rigorous approachesto vehicle emissionstesting. -. . . .. . . . . . Morbidity andpremature 0Promotethe use o fcleanerfuels inareas thatpredominantly use fuelwood inan deaths associatedwith accessible, safe, andcost-effective manner. indoor air Pollution 0Implement a programto promote improved stoves. 0Extendthe coverageo frural electrificationprograms. 0Insubsidyprogramsfor rurallow-income housing,includerequirementsfor building codes andhousing designinpoor communities to allow for improvedventilation and optimal chimney design. ____ -. - __ __ -.I__ .___... xxix Vulnerability to natural Increase efforts to prevent natural disasters, especially floods and landslides, through disasters activities that focus on incorporating disaster prevention in land use plans, drainage improvements, warning systems, and regulations prohibiting informal settlementinareas prone to risks ofnaturaldisasters. Develop a permanent systemof performance indicators for reduction of vulnerability to natural disasters. Define the specific roles of each national- and regional-level member of the National DisasterPreparednessandResponseSystem(SNPAD) andSINA, particularly CARS. Create strongerincentivesfor inclusion o fdisasterconsiderationsinenvironmentalimpact assessments andenvironmentallicensing. Periodically conductnational, regional, andlocalrisk assessments. Requireall levels of governmentto use comparativerisk assessment to guide allocations o ffinancial, human, andtechnicalresources. Establishpriorities for disaster monitoring and alert systems based on comparative risk assessment. Requirements for 0Devise concrete ways of integrating environment into urbanplanning and management improvedurban tools after reviewing the legal and regulatory framework o f environmental and urban environmental legislation. conditions 0Define and include environmental criteria in the eligibility criteria of Social Interest Housing (VIS) projects. Address structurallandsupplyproblemsandlower costs o fformality. Upstream enforcement of existing regulations and planning documents to prevent occupationofhazardous sites. Enforce landuse plans (F'OTs) so that decisions on siting of landfillsare consistentwith zoning regulationscontainedinPOTS. Needfor improvedwater 0Reexaminethe rolesofgovernmentbodies andcreatemore efficient cooperative resourcemanagement mechanisms. Findaneconomicallyefficient approachto wastewatertreatment, andcontrol discharges o fpathogensandhazardouswastes. Ensurethe collection andpublic disclosureofinformation relatedto wateravailability and water demands. Ensurethat the economicvalue ofwater is adequatelyreflectedinwater fees. Land degradationand Identifythe costsandbenefits of alternativeinterventions to control soil erosionandsoil deforestation salinization. Generationo falternativesto diversifynon-timber forestproducts andimprove the livelihoods of forest-dwelling communities. Establishthe analytical mechanismsto fosterthe capacityfor bothindigenous communities andtheruralpoor to profit fromthe sustainableandproductive uses offorest areas andthe implementation ofpaymentsfor environmental services. XXX 1 Part I Institutional Change and Environmental Priorities CONTENTS Part I: InstitutionalChange and EnvironmentalPriorities Abbreviations and Acronyms ....................................................................................................... ... Local and RegionalEnvironmental Authorities ...................................................................... viii ... Acknowledgments ......................................................................................................................... iX ExecutiveSummary ..................................................................................................................... ..........,............................................xi1.. xi UrbanandIndoorAir Pollution............................................................................................. Inadequate Water Supply, Sanitation, andHygiene,....... Natural Disasters...........,....,..,.................................... ... . Urban EnvironmentalManagement .......,.,.,.,....,..,..............................................................................xiv ... .....................,..................xiii... Water ResourcesPolicies........................................................................................................ . . xiv xv Soil DegradationandDeforestation xvi Global EnvironmentalProblems .............,...,.,..... ....... .... ............... Institutional Strengthening.. . . Conclusions.. .....,.,.....,.............,,................,...............,...................,...,...,............................................xvm ..........................................,..,...........................................................................xvii..*. ... , , .. .,...,...,........,.............,..................................,................xvii Chapter 1.Overview ..................................................................................................................... 7 Objectives ofthe Country EnvironmentalAnalysis .................................................................. 8 CEA Process andSummary ...................................................................................................... 8 Chapter 2. A Unique Modelfor EnvironmentalManagement ............................................... 11 Introduction Institutional andLegalFoundations: 1952-1974 ................................................................... ...............................................................................................,.......,..............,......11 12 ExpansionofRoles andLegalFrameworks: 1975-1993 .......................................................... 14 Conclusions........ ConsolidatingInstitutions, Regulations, andPlanning: 1994-2005 .. .....................,.. .. 20 ............,................................,......................,....................................................24 .... Chapter 3. Actors and Institutions...........................................,....,.........................................,. 27 EnvironmentalInformation Systems SINA's Finances..................................................................................................................... .............................,........................................................27 ................................................................................................ 29 National EnvironmentalCouncil andNationalTechnical Advisory Council ..... The Ministry ofEnvironment ; .................., 31 National PlanningDepartment(DNP) .................................................................................... 37 37 Institutes of Investigation . . National Parks System PublicParticipation....... ............................................................................................................ ........................................................................................................ 38 .........................,....,.,....,..,...............................................................40 40 Control Organizations... Judiciary .................................................................................................................................. ...........................,................................................................................41 41 ConclusionsandRecommendations ...............,....,...............,..................,..........,.....,..............42 Chapter 4. Decentralization: A BalancingAct......................................................................... 47 Background ............................................................................... 47 OverallPerformanceof CARS ................................................................................................ .............................................. 48 3 Allocation o f CARResourcesandPriority Setting 49 Sources of CARs' Financial Resources .................................................................................. ................................................................ 63 Adequacy o f HumanandTechnical Resources 66 Sanitation Infrastructure .......................................................................................................... ...................................................................... 68 Relationships between CARs andother SINA Entities 69 Conclusions andRecommendations ....................................................................................... ........................................................... 71 Chapter 5 Setting EnvironmentalPriorities:Top Downand BottomUp . ............................ 77 Introduction ............................................................................................................................. 77 Annual Cost of Environmental Damage ................................................................................. 78 Water, Sanitation, andHygiene UrbanAir Pollution................................................................................................................. .............................................................................................. 81 90 Indoor Air Pollution ................................................................................................................ 93 Agricultural LandDegradation ............................................................................................. 100 Natural Disasters ................................................................................................................... 105 Perception onEnvironmental Priority Problems .................................................................. 109 Conclusions ........................................................................................................................... 112 Tables 1:MainPolicy Optionsofthe Report .................................................................................................. xix 2.1: Characteristicsof Corporations Establishedduring 1954-1 971 ................................................... 13 2.2: Creationof SelectedNationalEnvironmentalOrganizations inLatinAmerica ........................... 18 2.3: Annual EnvironmentalExpenditureof CARS.MAVDT. andIDEAMas Percentageof GDP. 1995-2003 ................................................................................................................................... 22 2.4: EnvironmentalInvestmentsby CARS,1995-2003 ....................................................................... 24 3.1: Ministryof EnvironmentStaffingandSalaries, 2002 ................................................................... 31 3.2: Ministry of EnvironmentInvestmentBudgetby Issue, 2002 33 3.3: Recommendations ......................................................................................................................... ........................................................ 45 4.1:ASOCAR DataVariables with Direct Measures ofPerformance ................................................. 48 4.2: Categorizationof CAR InvestmentProjects ................................................................................. 50 4.3A. Severityof RiskversusPercent, 2001Total Investmentby CAR: Soil Erosion ........................ 53 4.3B. SeverityofRiskversus Percent, 2001Total Investmentby CAR: Flora andFaunaDegradation ..................................................................................................................................................... 54 4.3C. Severity of RiskversusPercent, 2001Total Investmentby CAR: NaturalDisaster Prevention55 4.3D. Severity ofRiskversus Percent, 2001Total Investmentby CAR: Water Pollution ..................56 4.3E. Relative SeverityofRiskversus RelativeIntensity of2001InvestmentbyCAR: Air Pollution ..................................................................................................................................................... 57 4.3F. RelativeSeverityof Riskversus RelativeIntensityof2001Investmentby CAR: SolidWaste 58 4.4A. InvestmentSpending: Planned(PAT) versus Actual (2001) ...................................................... 59 4.4B. InvestmentSpending: Planned(PAT) versus Actual (2001) for Corantioquia ....................................... ........................... 60 4.4C. InvestmentSpending: Planned(PAT) versus Actual (2001) for CRA 61 4.4D. InvestmentSpending: Planned(PAT) versus Actual (2001) for Cardique ................................ 62 4.5: CAR Resources,2003 (million pesos) 65 4.6: Recommendations ......................................................................................................................... .......................................................................................... 75 5.1:Annual Cost of EnvironmentalDamage-Low andHighEstimates ............................................ 78 5.2: BaselineDatafor EstimatingHealthImpacts 83 5.3: EstimatedAnnual ImpactsbnHealthDue to ................................................................................ ............................................................................... 84 . 5.4: EstimatedDALYs Lostto DiarrhealMortality andMorbidity 85 5.5:Estimated Annual Cost ofDiarrhealIllness ................................................................................... ..................................................... 85 4 .. 5.6: EstimatedAnnual Cost-of-Illness (Morbidity) by Category 85 5.7: Baseline Datafor Cost Estimation ................................................................................................ ......................................................... 86 5.8: Annual Casesof Hepatitis A andTyphoimaratyphoid (2000-03) .............................................. 87 5.9: EstimatedAnnual Cost of Hepatitis A and Typhoirnaratyphoid .......................................................................................... ................................................. 5.10: Baseline Datafor Cost Estimation 87 5.11:Estimated Annual Cost of BoilingDrinkingWater .................................................................... ....87 88 5.12: Baseline Data for Cost Estimation 89 5.13: UnitCosts of Water Purification 5.14: Estimated Total Annual Household Cost of Avertive Expenditures........................................... ................................................................................................. .............................................................................................. 89 5.15: Baseline Datafor Cities with Particulate Matter MonitoringData............................................. 89 90 5.17: Estimated Impactson HealthDueto UrbanAir Pollution.......................................................... 5.16: Baseline Datafor Cities without Particulate Matter MonitoringData........................................ 91 91 5.18: Estimated Health Impact by City ................................................................................................ 92 5.19: EstimatedAnnual Cost of HealthImpacts 92 5.20: EstimatedAnnual Cost ofMorbidity .......................................................................................... .................................................................................. 93 5:2 1: Fuels Usedfor Cooking inColombia 94 5.22: Household FuelwoodUse ........................................................................................................... .......................................................................................... 95 5.23: HealthRisksof Indoor Air Pollution .......................................................................................... 95 5.25: EstimatedAnnual Impactson HealthDueto Indoor Air Pollution 98 5.26: EstimatedDALYsLost to Indoor Air Pollution .......................................................................... ............................................. 98 5.27: EstimatedAnnual Cost of Indoor Air Pollution 99 5.28: EstimatedCost-of-Illnessby Category ........................................................................................ .......................................................................... 99 5.29: Baseline Datafor Cost Estimation 100 5.30: Indicators of LandDegradation ................................................................................................ ............................................................................................ 102 5.3 1: EstimatedRegressionCoefficients 103 5.32: Simulated Relative Yields......................................................................................................... ........................................................................................... 104 5.33 :EstimatedAnnual Cost of LandDegradation ............................................................................ 104 5.34: Number ofPeople andUnitsAffected by NaturalDisasters 5.35: Annual Average Impactsfor Three Periods ............................................................................. ..................................................... 105 ;106 5.36: PercentageofDisasterImpacts by Type ofDisaster, 1999-2003 ............................................. 106 5.37: Numberof PeopleAffected (annual average 1997-2003) 107 5.38: EstimatedAnnual Cost ofNatural Disasters ............................................................................. ........................................................ 108 5.39: EstimatedAnnualized Cost of Major Earthquakes ................................................................... 109 5.40: UnitCosts Appliedto Frequently OccurringDisasters ............................................................. 109 Figures 1:Annual Cost ofEnvironmental Degradation (% ofGDP) ................................................................. x i 2: PMlo Average Annual ConcentrationsinSelectedCities (pg/m3) xiv 3: Economic Costof SoilDegradation inSelectedCountrieq ............................................................. .................................................. xvi 4: PercentageofLandwith ProtectedAreas inSelectedCountries .. 5: Organizations of Colombia's SINA ................................................................................................ ................................................... xvii xxi 2.1:Public Environmental Expenditure as a Percentageof GDP inArgentina, Brazil, Chile, Costa Rica, Mexico, and Colombia ....................................................................................................... 22 2.2: Expendituresof SINA Agencies, 1995-2003 ................................................................................ 24 5.1:Annual Cost of EnvironmentalDamage (% of GDP) ................................................................... 78 5.2: EstimatedAnnual UrbanCosts (billion pesos) 79 5.3: EstimatedAnnual Rural Costs (billion pesos) ............................................................................... ............................................................................. 79 5.4: Costs ofEnvironmental Degradation (Health andQuality ofLife) 80 5.5: Costsby Category (billion pesos) ................................................................................................. .............................................. 80 5.6: "Physical" Costs by Category (billion pesos) ............................................................................... 80 5 5.7: Number ofDeathsby Category ..................................................................................................... 81 5.8: Deaths among Children. by Category ........................................................................................... 81 5.9: Annual Costs of InsufficientWater. Sanitation. Hygiene(billion pesos) 5.10: Annual Costsby Category (billionpesos) ................................................................................... ..................................... 81 5.11:Annual Costs ofUrbanAir Pollution(billion pesos) ............................................................. ....82 90 5.12: Annual Costs of Indoor Air Pollution(billion pesos) .................................................................1 93 5.13:Annual Costs of AgriculturalLandDegradation (billion pesos) ............................................... 101 5.14: Costs of Environmental Degradation(Erosion and Salinity) ..................................................... 101 5.15: EstimatedAnnual Costs ofNatural Disasters(billion pesos) .................................................... 105 5.16: Top Priorities for ColombiaAccording to Lowest andHighest Income Groups ...................... 111 5.17: Top Priorities for HouseholdsAccording toLowest andHighest Income Groups .................... 111 Boxes 2.1: Colombia's NationalEnvironmental System ................................................................................ 19 6 CHAPTER 1 OVERVIEW 1.1 In the last 50 years Colombia has succeeded in establishing a decentralized and innovative environmental management framework that includes a role for multiple stakeholders in environmental management. The National Environmental System (SistemuNucionulAmbientul, SINA) defines a role for different stakeholders, including financially independent regional environmental agencies, a central-level ministry responsible for overall policy formulation and coordination, and research institutes responsible for collecting and disseminating environmental data. The SINA also defines a role for nongovernmental organizations (NGOs)through their involvement on the Boards o f Regional Agencies, and for the private sector through its significant involvement in a Technical Advisory Council to advise on policy formulation. Intersectoral coordination is promoted through the National Environmental Council, which comprises representatives from 25 organizations includingnine Ministers (Planning, Agriculture, Health, Mines and Energy, Education, Transport, Defense, Commerce, Environment, and Housing) and six representatives from business and industry associations (oil and gas, mining, export, manufacturing, forestry, and agriculture). 1.2 Environmental degradation in Colombia disproportionately affects the health and productivity o f poor people. The impact o f human activities on the environment threatens the well-being o f current and future generations by creating problems such as (a) localized environmental health problems associated with inadequate household water quality, sanitation and hygiene, and indoor air pollution; (b) urban and regional air pollution, suboptimal waste management, and contamination o f rivers, lakes, and coastal areas; and (c) natural resource degradation and worsening o f global environmental problems such as globalwarming. 1.3 InColombia, lack of access to clean water, poor or nonexistentsanitationservices, and indoor air pollution are among the principal causes o f illness and death, predominantly for children and women in poor households. The effects o f these principalcauses o f environmental degradation are estimated to cost more than 3.7 percent o f Colombia's GDP, mainly due to increased mortality and morbidity and decreasedproductivity associated with four causes (Larsen 2004a). The first is poor ambient air quality in urban areas caused by industrial, commercial, residential, and vehicle emissions, and poor indoor air quality in rural areas caused by the use o f fuelwood for cooking and heating, The second is insufficient water supply, sanitation, and hygiene. The third i s natural disasters. The fourth is land erosion and salinization (Larsen, 2004a). 1.4 Over the past five decades, Colombia has restructured its legal and regulatory landscape, undertaken numerous policy initiatives, and dramatically expanded and strengthened its institutional capacity for protecting and managing the natural resources and environmental quality that are vital to sustainable growth and poverty reduction. Although the government made significant advances, such as establishing a system o f national parks and forestry reserves that covers nearly a quarter o f the national territory and phasing out leaded gasoline, it still faces the serious challenge o f slowing and reversing environmental degradation. 7 Objectivesofthe CountryEnvironmentalAnalysis 1.5 The objective o f the Country EnvironmentalAnalysis (CEA) is to present an analytical framework to support the efforts o fthe Government o f Colombiatoward achieving the MillenniumDevelopment Goals (MDGs). Particular focal points are Goal 7, ensuring environmental sustainability, and two o f the targets within Goal 7-Target 9, integrating the principles o f sustainable development into country policies and programs and reversing the losses o f environmental resources, and Target 11, achieving a significant improvement inthe lives o furbanslum dwellers. 1.6 Through its examination o f urban environmental issues such as air pollution and untreated drinking water that affect the most vulnerable population groups, the CEA provides the analytical underpinnings to design policies aimed at achieving MDG4 and reducing child mortality by addressing the causes o f respiratory illness, diarrhea, and other principal factors in morbidity and mortality for childrenunder the age o f five. 1.7 The findings of the CEA are specifically expected to help design and implement policies to (a) improve the effectiveness and efficiency o f Colombia's SINA, and (b) integrate principles o f sustainable development into key sector policies, with an emphasis on protectingthe most vulnerable groups. The main elements o f the CEA include analyses o f (a) the institutional capacity for environmental management in Colombia; (b) the cost o f environmental degradation; and (c) the effectiveness and efficiency o f existing policy, and legislative andregulatory frameworks to address priority environmental concerns. CEA Process and Summary 1.8 Preparation ofthe CEA began inJanuary 2004, inparallelwith the preparation ofthe Programmatic Development Policy Loanfor SustainableDevelopment. The findings of the mainstudies conducted during the CEA were presentedto national stakeholders and development partners at an August 2004 workshop in Bogotd From January to September 2004, a number o f smaller workshops and meetings were held to discuss methodology, gather data, and discuss emerging results with smaller stakeholder groups. These groups included representatives fiom sectoral ministries, Autonomous Regional Corporations (Corporaciones Autonbmas Regionales, CARs), the control agencies, academia, the private sector, Congress, the National Planning Department (Departamento Nacional de Planeacibn, DNP), bilateral agenciesactive inColombia, andother development partners. 1.9 The report has 14 chapters. Chapter 1presents an overview o f the report. Chapter 2 examines the evolution o f Colombia's environmental management framework during 1952-2005, including the establishment o f CARs; the development o f the National Code for Renewable Natural Resources and Environmental Protection, which remains Colombia's most important environmental management regulation; the role of the Ministry o f Health inpollution control; the passage and implementation o f the National Sanitary Code of 1979; and the establishment in 1993 o f the Ministry o f Environment and 33 CARs as part o f the newly organized SINA. Also discussed is the Government o f Colombia's 2002 decision to merge the Ministries o f Environment and Development and to phase out the Environmental Directorate inthe NationalPlanningDepartment. 1.10 Chapters 3 and 4 analyze the performance o f various SINA agencies, including the Ministry of Environment, Housing and Regional Development (MAVDT); research centers; environmental financing funds; the control authorities; and CARs. The chapter identifies the major challenges to mitigating environmental degradation and includes a series o f suggested actions to tackle identified institutional problems. 8 1.11 Chapter5 analyzes the cost of environmental degradationinColombia. The analysis shows that the environment-related problems with the highest costs are urban and indoor air pollution, inadequate water supply, sanitation andhygiene, naturaldisasters, andlanddegradation. The burden o f these costs falls most heavily on vulnerable segments o f the population, especially poor children under the age o f five. Chapter 5 also presents the results o f a 2004 survey o f public perceptions about Colombia's environmental problems and reveals that while the vast majority o f respondents identified air pollution as the top environmental problem, there were significant differences in priorities among income groups. The analysis supports the notion that the most vulnerable groups, who bear the greatest costs o f environmental degradation, traditionally have not been taken into account in policy making and lack an effective voice as a constituency. 1.12 Chapter 6 shows that although Colombia has achieved substantial reductions inchild mortality, including mortality from diarrheal diseases, the costs o f diarrheal morbidity from contaminated water and poor hygiene in both children and adults is still high. The poorest groups often lack adequate sanitation and water supply, largely due the lack o f policies that explicitly address these problems. Alternative interventions are analyzed to address waterborne diseases. 1.13 Chapters 7 and 8 show that air pollution is one of the most widespread and serious problems in Colombia's cities and rural areas. Although air pollution levels in most cities are moderate, close to 50 percent o f the population is concentrated in large cities (with more than 100,000 inhabitants) where the pollution problems and health effects are the worst, especially from particulate matter. The chapters conclude that there is an urgent need to update regulations and issue standards and economic instruments aimed at reducing airborne particulate matter, and to allocate sufficient financial and human resources to address air pollution, leading to the use o f cleaner fuels, improved cook stoves, andbetter housingdesign. 1.14 Chapter 9 discusses urban environmental management issues and highlights two main sets of problems associatedwith housing andurbanplanning, andwaste management and disposal. Although few regulations are inplace on these issues, environmental authorities have not made them a highpriority or allocated sufficient financial resources from the Urban EnvironmentalAgencies (AAUs) andthe national government to address problems such as how to adequately manage the roughly 27,500 tons o f solid waste generated daily in Colombia. The chapter addresses the importance o f developing policies to operate effective regional waste disposal sites and establish and enforce regulations to segregate andtreat hazardous wastes. 1.15 Chapter IO discusses problems associated with natural disasters, particularly floods and landslides, the management o f which falls under the mandate o f SINA. More than four million Colombians were affected by natural disasters during 1993-2000, at an annual cost o f approximately US$453 million (Echeveny Garz6n 2002). The poorest and most vulnerable have paid the highest costs for these disasters interms o f damages, deaths, and lost assets. A number o f actions are recommended to address this issue, particularly nonstructural measures to prevent human settlements in areas that are highlyvulnerable to naturaldisasters. 1.16 Chapter ZZ discusses problems associated with water resources management, and particularly allocation o f water rights anddegradation o f water bodies. Existingregulations do not efficiently respond to some o f the most urgent problems related to the allocation o f water rights, such as small farmers' and indigenous people's access to water rights. In addition, national regulations often create bottlenecks in managing water resources andprocessing water permits, and are ineffective incontrolling the degradation o f watersheds and water bodies. The chapter provides recommendations on several areas, including water quality and hazardous pollutants, sources o f pollution, water runoff and urban drainage, vulnerability to natural disasters, conservation o f important water ecosystems, and clarification o f the roles o f government agencies involved in water resources management. The chapter also addresses the need to reform water 9 pollution fees and wastewater discharge standards and for more accountability, transparency, and governance to promote compliance with water quality standards. 1.17 Chapter 12discusseserosion, salinization, anddeforestation, and illustrates the need for stronger efforts to address the problems o f land degradation. The analysis suggests that the investments made in reforestation by states, municipalities, environmental authorities, and CARShave had little or no impact on erosion control and regulation o f water streams. The chapter recommends incorporating provisions into the proposed national forestry bill that would secure the rights o f indigenous peoples and small farmers. 1.18 Chapter 13 discusses the most salient global environmental problems perceived in Colombia: biodiversity loss, climate change, andozone depletion. The analysis emphasizesthe challenges associated with the National Parks System. It suggests that the creation o f national parks by the government could have been more sensitive to the rights o f local stakeholders. Protected areas legislation, which is still in effect, has limited the use o f traditional production systems andnatural resourcesby local inhabitants, and has allowed parks to be created on private lands with unclear compensation measures for landtaken. The chapter recommends that institutional mechanisms be established to prevent andresolve conflicts between conservation interests andother social priorities, such as regional, social, and economic development. 1.19 Chapter 14summarizes the mainconclusions andfinds that the institutional systemmightneedto be strengthened to effectively support government efforts to promote environmentally sustainable development, in particular by allocating human and financial resources to address key environmental priorities that are linked to economic development including giving more attention to and allocation o f human and financial resources to tackle key environmental priorities linked to economic development. The chapter highlights the need for policy and institutional changes to address these priorities and to target complementary investments toward areas that impose high economic costs but that have not been adequately tackled. Inparticular, increased efforts are needed to improve the quality o f life o f the growing number o f poor people living in and around urban areas ina country where more than 70 percent o f the population is urban. The goal o f the recommendations is to support the country's efforts to move toward more equitable and sustainable economic growth. 10 CHAPTER 2 A UNIQUE MODEL FOR ENVIRONMENTALMANAGEMENT Theevolution of Colombia's environmental institutions over thepast 50years has led to a unique decentralized environmental management framework. During 1952-1974, a model of a decentralized water resources development system was established through the creation of Autonomous Regional Corporations (CARS) and the Institute of Renewable Natural Resources (INDERENA). In 1974, Colombia's most important environmental regulation, the National Code for RenewableNatural Resourcesand Environmental Protection (CNRN), was developed.During 1975-1993, INDERENA was very effective in establishing a system of national protected areas and CARS were also effective in developing water resources and other infrastructure projects. The 1991 Constitution and Law 99 of 1993 led to the creation of Colombia's National Environmental System (SINA). During 1994-2005, SINA agencies focused their efforts on implementing environmental investment projects in watershed management, reforestation, and construction of wastewater treatment plants. ASer 2002, the Ministries of Environment and Development merged, openingopportunitiesfor environmental mainstreaming. Introduction 2.1 This chapter examines the evolution of Colombia's environmental management framework during three periods between 1954 and 2005. The findings of this chapter are based on secondary information andinterviews conductedinColombia in2004. Is 2.2 In 1952 Colombia created the Division of RenewableNatural Resources within the Ministry of Agriculture. Two years later the first Autonomous Regional Corporation, the Autonomous Regional Corporation of the Cauca Valley (CVC), was establishedto promote integratedeconomic development in the Cauca Valley region. These two organizations were the beginning of what would become an independent environment ministry, a coordinated national environmental system, and an extensive network of financially autonomous regional environmental authorities. 2.3 Environmental regulations approved in the 1960s and 1970s included the 1969 Forestry Law, a 1977 statute creating the National Parks System, and a 1973 statute on flora and fauna. By far the most important new legislation, however, was the 1974 National Code for RenewableNatural Resources and Environmental Protection (Cddigo Nacional de Recursos Naturales y de Proteccidn a1 Medio Ambiente, CNRN), a comprehensive statute that remains Colombia's most important regulation for environmental and natural resources management. The Code has 340 articles covering water, air, solid and hazardous waste, soil, flora, and fauna, and it was one of the first environmental protection laws in the world to incorporatepollutionfees andenvironmentalimpact assessments. 2.4 During the 1980s, Colombia designed and implemented air and water pollution control regulations. The 1991 Constitution and Law 99 of 1993 marked the formation of both the National l5 Ernest0 Sbchez-Triana authored this chapter, which draws on background documents prepared for this study by Blackmanandothers (2004), University ofLosAndes (2004), and Canal(2004). 11 Environmental System (Sistema Nacional Ambiental, SINA), which established 37 organizations for environmental management andresearch in the country, and the Ministry o f Environment (Ministerio del Medio Ambiente, MMA). In 2003, the Ministry o f Environment was merged with the Ministry o f Economic Development to form the current Ministry o f Environment, Housing, and Regional Development (MAVDT). In this study, we review its evolution and present two different institutional assessmentsof its current functioning. Institutionaland LegalFoundations: 1952-1974 2.5 Since the early 1950s, the Colombian environmental management framework has been established as a decentralized structure based on regional agencies. This section provides a brief overview o f the development o f Colombia's environmental institutions and capacity through 1974, when the government issued the CNRN. Modem national environmental management in Colombia began in 1952 with the creation of the Division o f NaturalResources within the Ministryo f Agriculture. The division's mission was to ensure the rational development of natural resources such as forests and fisheries. Administration was centralized and funding was derived exclusively from the national budget, in line with an institutional structure that was virtually universal inColombia at the time (Sinchez-Triana 1999; MMA 2002). Under the division's leadership, Colombia's first forest conservation regulations were issued and seven sizable protectedareas were created (MMA 2002). 2.6 Colombia's first regional development corporation was the CVC, created in 1954 to promote integrated regional economic development (MAVDT 2002). The CVC's geographic boundaries were defined by the Cauca Valley watershed. The CVC's design was strongly influenced by contemporary thinking about development planning in North America and Latin America and was modeled after the U.S.TennesseeValley Authority (TVA) (Arboleda andothers 1981, 1982). 2.7 From 1954 to 1993, the functions o f regional development corporations (Corporaciones Autdnomas Regionales, CARS), were associated with the promotiono f regional economic development.`6 This has allowed them to pursue a wide range o f activities, including energy generation andtransmission projects, road infrastructure, erosion control, and telecommunications. During 1954-1 993, CARS gave priority to infrastructure and agricultural development projects whose broad mandates allowed CARSto carry out activities in different areas, including subsidizing some economic sectors through the transfer o f financial resources (such as setting up andmanaging irrigationschemes). 2.8 In 1961, the National Congress established the Corporation for the Magdalena Valley and Northern Colombia (Corporacidn del Valle del Magdalena y Norte de Colombia, CVM) and the Corporation for the Bogoth Savanna and the UbatC and Chiquinquirh Valleys (Corporacidn Autdnoma Regional de la Sabana de Bogotd y 10s Valles de Ubatk y Chiquinquird, CAR). The mandate o f these organizations was to develop water resources and infrastructure linked with agricultural development (Arboleda and others 1981, 1982). The C V M was established to promote economic development in the MagdalenaRiver Valley, but it was soon found that other government agencies had overlapping functions in these areas. Therefore, the C V M specialized in natural resources conserv'ation, establishment and management ofnational parks, andreforestation (Currie 1988). 2.9 In1965, the city ofBucaramanga established apartnership withtwo nationalgovernmententities, the Institute for Territorial Credit (Instituto de Crkdito Territorial, ICT) and the Institute for Municipal Development (Instituto de Foment0 Municipal, INSFOPAL). This association was called the Corporation for the Defense o f the Bucaramanga Plateau (Corporacidn Autdnoma Regional de Defensa de la Meseta l6 Beginning in 1976, the corporations were also responsible for managing renewable naturalresourcesand environmental protection (Arboleda and others 1981) 12 Table 2.1: CharacteristicsofCorporationsEstablishedduring1954-1971 Name Created Principal responsibilities Area ofjurisdiction cvc 1954 Developmentofwater resources Upperparts ofthe Cauca River CVM 1960 Developmentofwater resources MagdalenaRiver CAR 1961 Developmentofwater resources, BogothSavanna andthe telecommunications,and valleys ofUbate and infrastructure Chiquinquirti CRQ 1964 Transmissionanddistributionof DepartmentofQuindio energy CDMB 1965 Soil erosion control andsewerage City of Bucaramanga services CODECHOCO 1968 Developmentofinfrastructure DepartmentofChoc6 CORPOURABA 1968 Ruralandagricultural development Urabtizone inthe DepartmentofAntioquia CRAMSA 1971 Erosioncontrol Cities of Manizales, Salamina, andAranzazu Source: Shnchez-Triana1999. de Bucaramanga, CDMB) and was later converted into the sewerage utility of Bucaramanga (Arboleda andothers 1981,1982). 2.10 During 1955-1968, CARs were attached to the Ministry of Development, because they were established to promote regional economic development. In 1964 Congress established the Regional Corporation of Quindio to promote rural electrification in a department of the coffee-growing area, followed in 1968by the Corporation for the Development of the Choc6 (Corporacidnpara el Desarrollo Sostenible del Chocd, CODECHOCO) to promote economic development in the Pacific region and to build a canal linking the Pacific and the Atlantic Oceans using the Atrato River. The Corporation of Urabb (Corporacidn Autdnoma Regional de Urab6, CORPOURABA) was also established in 1968 to promote improvement inpublic services, integrateroadnetworks, andpromote agricultural activity inthe banana growing areas (Arboleda and others 1981). In 1973, the Corporation of the Sin6 and San Jorge River Valleys (Corporacidn Autdnoma Regional de 10s Valles del Sind y Sun Jorge, CVS) was established to develop water resources projects and promote agricultural development in northeastern Colombia. The origin of some corporations was to promote reconstruction in areas affected by natural disasters. For example, at the beginning of the 1970s Congress established the CAR for Manizales, Salamina, and Aranzazu (Corporacidn Autdnoma Regional de Manizales, Salamina y Aranzazu, CRAMSA) to controllandslidesandsoil erosion. 2.11 By 1961watersheds eventually ceasedto define the geographic boundariesofCARs, inlargepart because each of Colombia's departmentswanted to have its own CAR (Rodriguez Becerra 1998). During this period, national funding accounted for approximately half of CAR budgets. The other half was generated by fees for the provision of sanitation and other services, water pollution fees, and municipal property taxes, amongother things. 13 2.12 Although the majority of CARs focused their resources on building infrastructure, land development, and ranching, their functions were quite varied and included electricity generation and transmission, telecommunications, transportation, flood control, sanitation, potable water, and cattle ranching (Shchez-Triana 1999). While they were first attached to the Ministry of Economic Development (1960-1968) and then to the Ministry of Agriculture (1968-1 977), they retained responsibility for management of natural resources and economic development (Shnchez-Triana 1999, 2001; MMA 2002). 2.13 In 1968, Presidential Decree 2429 transformed the CVM into the Institute for Development of Renewable Natural Resources (Instituto de Desarrollo de 10s Recursos Naturales Renovables, INDERENA) by fusing it with the Division of Renewable Natural Resources in the Ministry of Agriculture. By this time, the CVM was perceived as an effective and necessary organization for natural resources conservation; it was converted to INDERENA (Currie 1988; Carrizosa 1990) and its area of jurisdiction was broadenedto cover the entire national territory. INDERENA's principal responsibilities were management of the National Parks System and promotion of investment projects in fisheries and reforestation (Shnchez-Triana,1999). 2.14 Under INDERENA's leadership, Colombia made a number of important advances in environmental management, includingthe 1969Forestry Law andthe 1974NationalCode for Renewable Natural Resources and Environmental Protection (Suirez, Carrasquilla, and Montenegro 2005)." The Code's first regulatory decrees, issuedbetween 1974 and 1978, dealt with a variety of topics, including managementof forestry reserve areas, provisionof environmental education, andprotection of wild fauna andhydrobiologicalresources(MMA 2002). Expansion of Roles and Legal Frameworks: 1975-1993 2.15 CARs were attachedto the Ministry of Agriculture until 1977, and then to the National Planning Department (Departamento Nacional de Planeacidn, DNP, 1977-1 993). In 1987 CARS' responsibilities were clarified by transferring functions such as road infrastructure and telecommunications to other specialized entities. CARs kept responsibility for management of natural resources and economic development(Shnchez-Triana 1999). 2.16 In the 1980s Congress established many CARs, including CORTOLIMA, CORPOCESAR, CARDER, CORMAGDALENA, CORPOGUAJIRA, and CORNARE, and gave them responsibility for implementing projects in water resources, natural resources management, environmental sanitation, erosion control, andother infrastructure to promote regional development. The Congress also gave CARS responsibility for controlling water pollution. Two other CARS were established in the 1980s, the Corporation ofNariiIo-Putumayo (Corporacidn de Nariiio-Putumayo, CNP) andthe Corporation ofNorth Santander (Corporacidn de Norte de Santander, CORPONOR). The mandate of these CARs was economic development inthe border areas with EcuadorandVenezuela, respectively. 2.17 During 1954-1993, most of the investments made by the corporations were directed toward energy and infrastructure. Five of these corporations (CVC, CAR, CODECHOCO, CORNARE, and l7 According to MAVDT (2006:4), INDERENA "initiated the process o f structuring environmental licenses with important advances in the definition o f criteria for evaluating EIA and the definition of terms o f reference for various sectors. Advances were also achieved in the definition o f instruments for administering and managing renewable natural resources (water, forest), activities were begunrelated to environmental education processes for different levels, and activities were initiated related to integrated watershed management and reforestation with community participation. In addition, advances were achieved in the orientation and definition o f environmental research." 14 CRQ) focused on electricity transmission and distribution programs, and only one (CVC) focused on electricity generation. The CVC constructed nearly 3,000 kilometers o f electricity lines. 2.18 The corporations also gave priority to developing the agricultural sector, which traditionally was very important in the portfolio o f state investment projects as a way for local politicians to stimulate the agricultural economy. The corporations' investments in this sector included irrigation and drainage districts, training, credit, technical assistance and agricultural extension services, marketing, and animal vaccinations. CARs initiated integrated watershed management projects, which included reforestation, land use management, erosion control, andaquaculture. 2.19 The CVC's Salvajina project, begun in 1979, was the largest and most important civil works project related to hydroelectric power development, flood control, and pollution control that was ever undertaken by CARs. This project became the source o f many environmental regulations enacted in Colombia, such as water pollution charges. Infrastructure projects carried out by CARs, including the CVC, CAR Cundinamarca, CODECHOCO, CORTOLIMA, CORPOURBA, and CRQ, include construction o f urban andrural roads, bridges, airports, transportation terminals, markets, health centers, schools, andhousing. Inthe area o f communications, CAR Cundinamarca, together with the state-owned telecommunications company (Telecom), expanded the rural telephone system in24 municipalities inthe Savanna, including construction o f 600 kilometers of new lines to create automatic connections among 41 municipalities. At the same time, financing, construction, andoperation and maintenance o f the water and sewerage systems andthe urban trash collection system were a major portion o f CARS'investments. The corporations carried out more than 180water sanitation projects, with one corporation, CDMB, serving as the sewerageutility for the city ofBucaramanga. 2.20 The CAR Cundinamarca's 1985 Regional Master Plan for Environmental Quality stands out among the environmental sanitation projects. Under this plan, the CAR built and put into operation wastewater treatment plants in some municipalities o f the Bogoth Savanna, and in 1991 took a US$50 million loan from the IDB for a program that included the construction o f 23 municipal wastewater treatment plants, 25 sanitary landfills, and9 systems for pretreatment and"clean production" inmunicipal slaughterhouses. 2.21 While the corporations were engaged in a variety o f activities, their main priority was building infrastructure for water resources. These projects allowed resources to be transferred from the national budget, property taxes, and electricity sales to support development o f other sectors such as agriculture. The corporations financed their activities with resources from the national budget, the property tax (particularly the CAR), transfers from the electricity sector (particularly CORNARE), windfalls from mining(particularly CVS), andtariffs on electricity (particularly CVC). Total budget expenditures bythe regional corporations during 1970-1 994 were US$2.58 billion inconstant 1975 dollars. 2.22 During this time, INDERENA faced three important challenges. First, it had a small budget relative to its responsibilities. By the end o f the 1980s, Colombia's 18 CARs covered only a quarter o f the national territory; INDERENA was completely responsible for environmental management in the remaining territory. Julio Carrizosa, a former INDERENAdirector, pointed out that his organization had less than 5 pesos to protect each hectare o f national territory, whereas CVC had more than 17,000 pesos per hectare (MMA 2002). 2.23 Second, like the Division o f Natural Resources, INDERENA was limited by its affiliation with the Ministry o f Agriculture. INDERENA worked to protect the same natural resources that ministry offices sought to develop. Manuel Rodriguez, the last Director o f INDERENA and the first Minister o f the Environment, points out that INDERENA was greatly weakened by "the secondary position that it 15 occupied in the Ministry o f Agriculture andthe conflict inherent inthe fact that [the Ministry]was one o f the principalusers o f renewable natural resources" (Rodriguez Becerra 1994). 2.24 Third, INDERENA-and environmental management generally-was weakened by the continued dispersion o f environmental functions across different national and regional organizations including the Ministry o f Health; the Ministry o f Mining and Energy; the Institute o f Hydrology, Meteorology, and Land Suitability; the Maritime and Ports Directorate; and the DNP. The creation o f INDERENA seems to have done little to rectify this situation. For instance, several responsibilities relating to environmental licensing o f mines were transferred from INDERENA to the Ministry o f Mining, while fisheries management was transferred to a new National Institute o f Fishing. Simultaneously, INDERENA gradually lost jurisdiction in the areas where 16 new CARs were created. According to Rodriguez Becerra, this dispersion amounted to a "slow death through dismemberment," a "process that was never planned" (Rodriguez Becerra 1994). 2.25 From 1975 to 1993, the Ministryo f Healthwas the primarygovernment actor inefforts to control pollution, using the authority granted by the 1979 enactment o f the National Sanitary Code that covered, in particular, air pollution, waste management, and solid waste disposal. In 1993, responsibility for air pollution control andsolid waste management was transferred to the Ministry o f Environment. 2.26 In the mid-1980s, Colombian environmentalists and concerned stakeholders both within and outside o f the fledgling environmental management bureaucracy formed an alliance. This development was encouraged by the unprecedented international attention then being devoted to environmental issues in developing countries. It was also spurred by increasing evidence of a rapid deterioration of environmental quality in Colombia (Rodriguez Becerra 1994). This new alliance lobbied for a major restructuring o f environmental management in the country. INDERENA encouraged and participated in this effort. An important theme o f the debate was whether and how to establish a national environmental authority, which at the time was a trend throughout Latin America (Dillinger and Webb 1999). A 1985 study o f environmental management in Colombia, contracted by INDERENA, concluded that such an inititative was in order (MMA and others 2002), and that administration and management o f renewable natural resources could be performed better with the creation o f an administrative department to which CAR would be attached (Rodriguez Becerra 1994). 2.27 These currents culminated in INDERENA's proposal to create an independent Administrative Department o f Renewable Natural Resources and the Environment (Departamento Administrativo de Recursos Naturales, DARNAR) that would raise the status o f environmental management. However, the proposal was controversial and failed because it threatened the CARs' autonomy (MMA and others 2002). Yet the alliance o f environmentalists continued to call for the creation o f a national entity responsible for coordinating environmental management. 2.28 InNovember 1990, the Congressconsidered abillto create anew national environmentalsystem, including a national ministry that would coordinate the decentralized management. This coincided with the 1991 constitutional reform, which significantly changed the structure o f governance inall sectors (see below). The design o f the proposed environmental system was adjusted in response to the ratification o f the new Constitution. The first important government documents on environmental policy reform-issued by the National Council on Economic and Social Policy (Consejo Nacional de Politica Econdmica y Social, C0NPES)-were approved in 1991andpavedthe way for the creation o f SINA in 1993. The 1991Constitution and Law 99 of 1993 2.29 The two legislative pillars o f Colombia's current environmental management system are the Constitution o f 1991 and Law 99 o f 1993. One o f the key purposes o f the 1991 constitutional reformwas 16 to establish a more decentralized and participatory government. To that end, the Constitution gives departments, municipalities, and CARs autonomy to plan and administer local policy (in coordination with national planning), pass local decrees and ordinances, and impose taxes that are not transferable to the national level. The Constitution didnot abolish a unitary government, but departments, municipalities, and CARs are all part of the executive branch of the national government. Furthermore, governors and mayors are electedby the public, but are agentso f the president who can remove them from office. 2.30 CARS' governance structure and relationship to the national government is similar to that of departments and municipalities. The Constitution gives Congress the power to create and regulate the functioning o f CARs, and specifically requires that they be autonomous. The Constitution created one CAR, the CAR del Rio Grande de la Magdalena, with the specific purpose o f developing and managing water resources inthe MagdalenaRiver basin. 2.3 1 The 1991 Constitution envisions a govemment with extensive planning responsibilities, including those relatedto environmental protection. It creates a National System o f Planning andrequires the president to draft a National Development Plan (Plan Nacional de Desarrollo) and to present it to Congress within six months o f taking office. This plan, which typically includes environmental provisions, must include long-term goals, medium-term priorities for action, and short-term strategies for implementation. The territorial governments are required to develop plans in consultation with the national government under the advice o f territorial planning councils, Law 99 adopted the same general planningstructure for CARs. 2.32 The Constitution creates a dedicated revenue base for the government's environmental protection activities. Municipalities must transfer a percentage o f municipal property taxes to CARs for environmental management. The Constitution also creates a National Royalty Fundfrom the proceeds o f a severance tax on the exploitation o f nonrenewable resources, The fbnd targets investment projects in infrastructure, mining, and ecological preservation. The 1991 Constitution envisions a central role for individual citizens andNGOsinformulating andimplementingenvironmentalpolicy. Inadditionto havingacollective rightto a clean environment, citizens have the duty to protect naturalresourcesandthe environment. 2.33 The Constitution creates three causes o f action through which citizens can intervene in the Colombian courts to protect the environment. First, any citizen or group o f citizens can bring a popular action (accibn popular) to protect their collective right to a clean environment, even if they cannot demonstrate direct, personal damage. Second, any person can bring a compliance action (accibn de cumplimiento) to ensure that laws-including environmental laws-are upheld. Finally, the Constitution allows the law to establish cases in which an action requesting injunctive relief (accibn de tutela) can be brought to prevent violation o f fundamental rights. The Constitution also requires that law establish those cases in which an accibn de tutela can be brought to protect "the collective interest." The Constitutional Court o f Colombia has interpreted the Constitution to allow an accibn de tutela to protect the right to a clean environment where environmental deterioration threatens human health (Iguarb 2001). This has proved to be an important tool in environmental protection because it provides virtually immediate injunctive relief-ourts mustissue a decision within 10days. 2.34 Aside from these mechanisms o f participation that depend on access to courts, the 1991 Constitution guarantees the communities' participation in decisions that may affect them, and states that an essential purpose o f government is to facilitate such participation. It deals specifically with implications o f these provisions for the environmental sector. It stipulates that the state has a duty to provide citizens with sufficient understanding about environmental protection to enable them to fulfill their duty to protect the environment. In addition, it specifically requires adoption o f statutes that guarantee community participation indecisions that affect the environment. 17 2.35 The Constitution creates several general mechanisms for public participation, including the right to petitionpublic authorities andpublic hearings, open meetings, referendums, and standardparticipation inelections. For the most part, the Constitutiondoes not specify precisely how these mechanisms willbe implemented. However, in the case o f the Contraloria,'* the Constitution does require adoption of laws that create systems to allow citizens to monitorpublic fiscal management at all levels o f government. 2.36 Law 99 creates Colombia's National Environmental System (Sistema Nucional Ambiental, SINA), a "set of orientations, norms, activities, resources, programs, and institutions that allow the implementation o f general environmental principles." Consistent with the 1991 Constitution, this management system was to be decentralized, democratic, and participatory (Box 2.1). As discussed in detail in Blackman and others (2004), for heuristic purposes, the SINA may be thought o f as a management system made up o f institutional actors, coordination and planning mechanisms, public participation mechanisms, legal norms, policy implementation and enforcement mechanisms, and financial resources. 2.37 Law 99 created the Ministry o f the Environment (Ministerio del Medio Ambiente, MMA) to consolidate many o f the principal environmental management functions dispersed throughout various branches of the national government, and to provide a means o f coordinating environmental management in both the public and private sectors. The MMA's principal roles in SINA are to establish national policy, develop regulations, control important fiscal resources, and generally to plan and coordinate environmental management (Law 99 Art. 2). With these institutional reforms, Colombia became one o f the first Latin American countries to establish an independent environmental agency at the ministerial level. Inaddition, with the creation o f the new ministry, INDERENAwas subsequently phased out. 2.38 Similar efforts were carried out throughout the region during the 1990s, when most countries responded to growing domestic and international concerns about environmental degradation by developing the national agencies that continue to govern their respective environmental sector to this day (Table 2.2). Chile's and Peru's environmental agencies never had ministerial status, while Argentina's andCuba's were clustered into larger ministries. Colombia, Mexico, andArgentina have introducedmore recent institutional reforms that have significantly modified the structures o f these organizations. In the Table 2.2: Creation of SelectedNationalEnvironmentalOrganizationsinLatinAmerica Year Country /Institution 1978 Venezuela: MinistryofEnvironmentandNaturalResources 1991 Brazil: Ministry of Environment 1992 Argentina: SecretariatofNaturalResourcesandHumanEnvironment 1993 Colombia:MinistryofEnvironment 1994 Cuba: Ministry of Science, TechnologyandEnvironment Mexico: Ministryof Environment,NaturalResourcesandFisheries Chile: National Commissionfor the Environment Peru: National Councilfor the Environment 1996 Costa Rica: Ministry of Environment 1998 Panama:National EnvironmentalAuthority Source:Venezuela:www.mam.eov.ve;Brazil:www.nmia.rrov.br,Argentina:Decree2419/91: Cuba:CIGEA (2001); Mexico:SEMARNAP (2000); Chile:OECD andCEPAL(2005); Peru:CONAM (2001); CostaRicaandPanama:ANAM (2004). l8 The Contraloria is the rankingpublic entity inchargeofoversight ofall fiscal mattersandguarantees the correct managementof public funds andcontributesto the modernizationofthe State through collaborationwithpublic institutions. 18 case of Colombia, the Ministry was recently grouped with the housing and regional development sectors, as detailed below. 2.39 Regarding the development of regulations, the MMA sets national environmental quality standards and criteria to be incorporated into sectoral policies established by agencies and subordinate governments. It i s specifically charged with developing regulations to manage endangered species, conservation, and trade of genetic material, marine resources, environmental contamination, native Box 2.1:Colombia's National Environmental System Law 99 o f 1993 created both the National Environmental System (SINA) and Colombia's Ministry o f Environment (now the Ministry o f Environment, Housing and Regional Development, MAVDT). The ministry was intended to consolidate key environmental management functions dispersed throughout the national government and serve as the cornerstone o f the National Environmental System, which would help coordinate environmental management among a range o f public and private stakeholders. In keeping with the 1991 Constitution, SINA was to be decentralized, democratic, and participatory. Law 99 defines SINA as a "set o f orientations, norms, activities, resources, programs, and institutions that allow the implementation o f general environmental principles" around a model o f sustainable development. The principal institutional elements o f SINA include: Key government environmental authorities: Other national government institutionswith MAVDT environmentalresponsibilities: National Parks System CARs andAAUs NationalPlanningDepartment (DNP) Government oversight institutions Territorial authorities: -Contraloria Departments and municipalities -Procuraduria Temtories o f Indigenous Peoples Ministries other than MAVTD Civil sociefy: Research Institutes Environmental NGOs National Environmental Council Universities andprivate researchinstitutions Technical Advisory Council Commercial firms and farms The guiding principles o f SINA are that (a) economic and social development will be guided by the goal o f sustainable development laid out in the 1992 Rio Conference; (b) biodiversity must be protected and should only be exploited in a sustainable manner; (c) human consumption is the highest priority for water use; (d) environmentalpolicy will be based onthe best available scientific evidence, andaction shouldbe taken to prevent possible serious irreversible damage even if that evidence is incomplete; (e) environmental costs will be incorporated into policies and markets to help conserve the environment and renewable natural resources; (0 environmentalprotection is a coordinated task among the state, communities, NGOs, and the private sector, and to promote this vision the State will support the development o f environmental NGOs and may delegate some government functions to them; and (g) environmental impact studies will be the basic instrument for deciding whether to engage inactivities that mightsignificantly affect the environment. SINA instruments for governance and management include legal norms such as environmental laws, presidential decrees, enforcement actions, environmental licensing, command-and-control regulations, voluntary agreements, and economic instruments such as effluent fees. Under Law 99 o f 1993, the MAVDT is responsible for planning national environmental policy. The regional authorities, including the CARs and MUS,are responsible for implementing it. In addition, requirements and regulations adopted by lower levels o f government cannot be weaker than, nor weaken, norms established by higher levels o f government. However, the CARs are largely autonomous entities that define their own priorities and investment programs. 19 forests, the national forest reserves system, and the National Parks System. As coordinator o f the SINA system, the MMA i s responsible for approving legal rules adopted by CARs andAAUs. 2.40 In addition to coordinating government activity, the MMA helps to align the environmental activities o f nongovernmental actors with national management goals. For example, the MMA establishes linkswiththe privatesectorandmaintainsaregistry ofenvironmentalNGOs (Law 99Art.5). 2.41 Law 99 o f 1993 also redefined the roles, functions, andjurisdictions o f CARs. Although CARs retained some o f their economic development functions, they were essentially recast as environmental management authorities. Law 99 also established additional CARs, along with Autonomous Sustainable Development Corporations (CorporacionesAutdnomasdeDesarrollo Sostenible, CDSs), a similar regional Ambientales Urbanas, AAUs) incities with more than 1million inhabitant^.'^ Law 768 o f 2002 added two authority interritories reserved for indigenous peoples, andUrbanEnvironmentalAuthorities (Auforidades more AAUs, for Santa Marta and Cartagena. This proliferation o f regional environmental authorities ensuredthat the entire nationalterritory was under thejurisdiction o fa regionalenvironmentalauthority. ConsolidatingInstitutions,Regulations,andPlanning:1994-2005 Ministry of Environment 2.42 The Ministry o f Environment (MMA) was created in 1993, andfrom 1994 to 2005 Colombia has had seven ministers of environment and four administrations, each with different priorities. A National Development Planwas adopted in 1995, andduring 1994-1998 priorities included increasing investments in environmental projects and strengthening the environmental agencies established under SINA. The plan defined seven programs as priority actions for improving environmental management: strategic ecosystem protection, better water, clean seas and coasts, more forests, better cities and villages, population policy, and clean production (MMA 2002). 2.43 During 1998-2002, the MMA gave special attention to biodiversity, biosafety, and rural environmental issues such as forestry, and international discussions associated with global environmental problems. The major achievement from this period was the strengthening o f Colombia's National Parks System, which local communities were recruitedto help buildinselected locations (MMA 2002). 2.44 From 2002 to 2005, two o f the administration's main actions have been merging most o f the functions o f the Ministry o f Economic Development with the Ministry o f Environment to create the new Ministry o f Environment, Housing and Regional Development (Ministerio de Ambiente, Vivienda y Desarrollo Territorial, MAVDT), and phasing out, inJanuary 2004, the Environmental Directorate o f the NationalPlanning Department. 2.45 The National Development Plans cover the environmental sector (among others), and although plans do exist for subsectorswithin the environment sector (such as forestry andenvironmental research), no systematic periodic planning exercise exists to establish priorities across environmental programs and subsectors such as forestry, air pollution, water resources, and water sanitation." This gap has been l9 At the end of 2005, Colombia had 33 CARs and CDSs. In addition, there are AAUs in six cities: Bogotl (DAMA), Cali (DAGMA), Medellin(AMVA), Barranquilla(DAMAB, formerly DADIMA),Cartegena(EPA), and Santa Marta (DADMA). According to MAVDT (2006:5), "in defining the environment as part of the National Development Plan ajoint exercise was carried out among the National PlanningDepartment and technical departmentsof the Ministry so that policy frameworks prioritize those items included in the Plan. Subsequently, in accordance with Law 152 of 1994 (the Development Plan Law), the Ministry developed the Indicative Sectoral Plan, in which goals for those items 20 highlighted inpast evaluations o f planning in the SINA (Galhn 1998; MMA 2002). Planningis generally done sector by sector and, as yet, efforts to "break out o f sectoral boxes" to consider prioritization across programs or sectors have not been successful. Galhn (1998) noted that within MMA, efforts had been made to discuss policy documents among subdirectorates, but that, as o f five years ago, it had not been possible to arrive at shared concepts that would allow discussion of priorities across programareas?l As discussed in Chapter 3, a review o f the Uribe administration's 2002-06 National Development Plan reveals little discussion of environmental priorities across sectors (Blackman and others 2004). 2.46 According to the United States Department o f Commerce's Colombia Environmental Export Market Plan (1999);' the industrial associations influenced the design and have had a notable influence in opposing the development of strict environmental regulation^.^^ The United States Department o f Commerce document states that these associations have been successful inrestricting the development o f environmental legislation and the enforcement o f pollution prevention and control regulation^.^^ According to the Contraloria (2004: 159), with respect to environmental managment within the business sector "criteria have not been defined to ensure that, in planning processes, common environmental interests take priority over the particular economic interests o f businesses" (Contraloria, 2004:159). EnvironmentalExpenditure Review 2.47 The total budget during 1995-2003 for operation and investments by the MAVDT, CARS,the Administrative Unit for National Natural Parks (UnidadAdministrativaEspecial del Sistema de Parques Nucionales Naturales, UAESPNN), research institutions, and IDEAM is estimated at C$5,693,129 million (in constant 2003 pesos, the equivalent o f US$1.979 billion), or an average o f C$633,000 million ''includedintheto National Development Plan are defined." According MAVDT (2006:5), "a prioritization exercise o f the areas linked to the National Development Plan does exist, which is detailed even more at the temtorial level in the development o f corresponding planning ''instruments." Accessible online at h~://web.ita.doc.aov/ete/eteinfo.nsYA~~roved/?SearchView&Ouerv=~Colombia~%5D. 23 For MAVDT (2006:5), "the development o f norms and instruments for policy implementation is carried out through an open, participatory processamong the entities involved and the regulated sectors. This is not to say that the development ofnorms is influencedbybusiness associations." 24 According to the Minister o f Finance and Public Credit, the Director of the National Planning Department,and the Minister o f Environment, Housing and Territorial Development, "in order to ensure that there is more effective participation of the most vulnerable segments (those affected by environmental degradation), the national government issued a Decree to optimize the Technical Advisory Council for Environmental Policies andNorms o f the Ministry of Environment (CTA) to serve as a forum for cross-sectoral coordination and to ensure the participation of the most vulnerable segments (those affected by environmental degradation). The CTA o f MAVDT was establishedunder Article 11 o f Law 99 (1993) to serve as principal advisor to the Minister o f Environment, Housing and Temtorial Development inthe formulation of policies andthe issuanceo f the country's environmental rulings. The Council comprises five (5) members, including two (2) representatives from public and private universities, and three (3) representatives from industry, agricultural, and mining and hydrocarbon councils (one representative from each sector). MAVDT has detected a visible imbalance in the level o f discussions and recommendations from the Technical Advisory Council for Environmental Policies and Norms o f the Ministry o f Environment (CTA), given that representation from other key stakeholders who should also be consulted is lacking (inparticular those who are most affected by priority environmental problems that are targeted within the rulings issued by MAVDT). For this reason, one o f the primary objectives that this new Decree aims to achieve is to guarantee the active participation, at the level o f Technical Committees, o f representativesof civil society who could be affected by andor have a valid interest in addressing environmental problems related to the policies and regulations that are submitted to the Council for consideration. In this way, it is intended that the Council will generatea more balanceddiscussion that considers different stakeholders affected or benefited by the environmental policies andnorms that MAVDTissues" (Carrasquilla, Montenegro, and SuArez, 2005:73). 21 per year. The average annual environmental expenditure o f these organization (AAUs' expenditures are not included) is estimated at 0.3 percent o f GDP (equal to US$320 million per year) during 1995-2003 (Table 2.3 and Figure 2.1). From 1995 to 2003, nearly 35 percent o f the public environmental expenditures (particularly by CARs) was directed to river basin management, conservation o f water bodies, water supply, and wastewater treatment, while another 18 percent went to biodiversity and green markets, global environmental problems, and reforestation?' Expenditures o n institutional strengthening andenforcement account for the other 40percent oftotal expenditures.26 Table 2.3: AnnualEnvironmentalExpenditureof CARs, MAVDT, andIDEAM as Percentageof GDP, 1995-2003 Year Percentape ofreal GDP 1995 0.25 1996 0.31 1997 0.28 1998 0.27 1999 0.34 2000 0.34 2001 0.32 2002 0.30 2003 0.29 Total 0.30 Figure2.1: PublicEnvironmentalExpenditureas aPercentageof GDPin Argentina, Brazil,Chile, CostaRica,Mexico, and Colombia Public Enuironmentrl Expenditure 4% of G D P I 0.80% I 1 0.70% 0 60% 0.50% 0.40% 0 3 0 % . . -C os ta R ica -Mexico 0.20% 0.1 0% 0.00% I 1 I 1990 1995 2000 2105 Source: Canal(2004). " ThereviewofpublicenvironmentalexpendituresthatissummarizedinthissectionwasconductedbyFrancisco Canal of the Association o f CARS. The data used inthis analysis o f public environmental expenditureswere taken from publications of the Contraloria and o f the CARs. MAVDT (20065) considers "that it is difficult to make a combined analysis from two different sources o f information, inwhich that o f MAVDT is official (public) and that of the CARs has not beenvalidated by the Ministry." 26 Environmental expenditure, measuredas a percentageofGDP, varies significantly from one country to another in the Latin America and the Caribbean Region. Whereas countries such as Argentina, Brazil, andPeruhave tended to spenda significantly smaller share of GDP to address their environmental challenges, others, including Costa Rica andMexico, have steadily increasedtheir public environmental expenditure to more than 0.60 percentoftheir GDP. 22 2.48 CARs account for 81 percent o f total estimated environmental expenditures, the MAVDT 10 percent (including some allocations to CARs), the Instituto de Hidrologia, Meteorologia y Estudios Ambientales (IDEM) 5 percent, and the UAESPNN 2 percent. Four research institutions jointly account for the remaining 4 percent o f expenditures: the Institute o f Marine and Coastal Research (Informe del Estado de 10s Ambientes Marinos y Costeros, INVEMAR), the Institute o f Research on Biological Resources, the Amazon Institute for Scientific Research, and the Environmental Research Institute o f the Pacific (IN) (Figure 2.2). 2.49 During 1995-2003, 71 percent of SINA funding for operational expenditures and 85 percent of its funding for investments was allocated to CARs. Seventy-eight percent o f funding for operational expenditures and 86 percent o f funding for investments was self-generated; the balance came from national budget allocations. CARSraise revenue through property taxes, electricity taxes, effluent fees, compensatory fees, water use fees, licenses and permits, fines and sanctions, the sale o f goods and services, profits on investments, and interinstitutional agreements. Property taxes account for 35 percent o f their total revenues, profits on investments 34 percent, electricity taxes 10 percent, interinstitutional agreements andthe sale o f goods and services combined 10percent, and effluent fees less than 2 percent. Revenue generated by CARs grew by 89 percent during 1995-2003. These figures mask significant differences among CARs; 82 percent o f resources are concentrated in only 8 o f the 33 CARS." Total revenues o f CARs vary from a low o f C$2.7 billion (CSB) to a higho f C$135.7 billion (CVC). Likewise, CAR spending per inhabitant varies greatly, from a low o f C$3,040 (CORPOCESAR) to a high o f C$84,660 (CORPOGUAVIO). During 1995-2003, the expenditures o f CARs were distributed among four main categories: (a) operational expenses, (b) investments inenvironmentalprojects, (c) institutional strengthening, and (d) enforcement o f environmental regulations. On average, 60 percent o f CARS' expenditures, not including operational expenses, were allocated to preinvestment and investment in environmental projects, 26 percent to institutional strengthening, and 14 percent to enforcement o f environmental regulations (Figure 2.2). Figure2.2: Expendituresof SINA Agencies, 1995-2003 700000000 f 600000000 N 8 500000000 10 c) g 400000000 0 300000000 g 0 200000000 g8 100000000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 1 -CARS MAVDT I. UAESPNN INSTITUTOS -1DEAM I ~~~~~ 27 According to MAVDT (2006:6), the "largest amount of resources are concentrated in a few CARSdue to circumstances of astructuralnature, related to the development potentialofthejurisdictional areas of eachone." 23 2.50 The expenditures o f the SINA on investment and preinvestment activities are clustered into 10 programs and indicate that priority activities and subprograms for CARs during 1995-2003 were investments in the management o f river basins and conservation o f water bodies, wastewater treatment plants and water supply, reforestation and conservation o f forests, biodiversity and green markets, and global andurbanenvironmental issues (Table 2.4). Conclusions 2.51 There has been a gradual evolution inColombia's environmentalmanagement framework. One of the significant milestones reached during 1952-1974 was the establishment o f CARS intendedto promote regional economic development through investments in water resources infrastructure, energy infrastructure, agriculture, androads. The first o fthese, the CVC inthe Cauca Valley, was created in 1954 based on the U.S. TVA model. Inaddition, in 1961 a CAR was established for the Magdalena River and later transformed into the INDERENA.In 1974 the National Code for Renewable Natural Resources and Environmental Protection was developed,. This code is still the most important regulation for environmentalmanagement inthe country. 2.52 During 1975-1993, CARs began to assume their role as environmental regulatory agencies. By 1988 Congress had established 18 CARS. INDERENA was successful in promoting the conservation agenda, as evidenced by advances such as titling o f lands belonging to indigenous peoples and establishment o f national parks. Furthermore, historical events were influential in focusing the attention o f INDERENA and CARs on three main environmental priority areas: river basin management and conservation o f water bodies, reforestation, andConservation o f biodiversity. The Ministry o f Health was the key player in efforts to control pollution, in accordance with Congress's passage in 1979 of the National Sanitary Code, which covers air pollution control, waste management, waste disposal, water quality, and water pollutioncontrol. 2.53 By 1991a new constitution was created, leadingto passageo fLaw 99 in 1993, which established the Ministry o f Environment and 33 CARS as part o f Colombia's National Environmental System, aimed at tackling problems associated with effective environmental management. These problems included degradation o f water bodies and the lack o f organizations and funds to address environmental priority areas. The area o fjurisdiction o fthese CARSwas driven by the interests o f several members o f Congress. Law 99 also made provisions for revenue generation by CARs so that they could address environmental Table2.4: EnvironmentalInvestments by CARs, 1995-2003 Expenditures Activity/Subprogram Pesos (millions) Share (%) Riverbasinmanagementand conservationofwater bodies 619.2 31.3 Wastewatertreatment andwater supply 518.5 26.2 Forestsandreforestation 272.2 13.8 Biodiversity andgreen markets 184.9 9.3 Globalandurban environmentalproblems 158.3 8.0 Preventionofnaturaldisasters 86.5 4.4 Solid andhazardouswaste management 77.5 3.9 Promotionofcleanproduction 56.3 2.8 Land 4.9 0.3 Air quality management 1.3 0.1 Source: Canal (2004). 24 priorities through investments inenvironmental projects. By 2002, the Government of Colombia decided to merge the Ministries of Environment andDevelopment andto phase out the EnvironmentalDirectorate inthe NationalPlanningDepartment. 2.54 During 1995-2003, the total budget for operation and investments by the MAVDT, CARS, the UAESPNN, research institutions, andIDEM is estimated to have been US$1.98 billion (the equivalent of C$5,700 billion, in constant 2003 pesos), or an average of US$220 million per year. The average annual environmental expenditure of these organizations (AAU expenditures are not included) is estimated at 0.3 percent of GDP (US$320 million per year) for 1995-2003. Nearly 35 percent o f these expenditures were directed at river basin management, conservation of water bodies, water supply, and wastewater treatment, and another 18 percent went to biodiversity and green markets, global environmental problems, and reforestation. Expenditures on institutional strengthening and enforcement account for the other 40 percent oftotal expenditures. 25 CHAPTER 3 ACTORS AND INSTITUTIONS Colombia's National Environmental System includes the Ministry of Environment, the National Environmental Council, regional environmental authorities, urban environmental authorities, research institutes, and control agencies. Challenges that emerge in trying to assess the National Environmental System are the adequacy of data and the lack of indicators on environmental quality and institutional performance; the need to better define sectoral priorities; the eflciency of public sector spending on the environment; management capacity in key agencies; coordination between national and regional agencies and between research institutes and program agencies; suboptimal regulatoly instruments and compliance agreements; and low legal andfiscal oversight and auditing capacity. 3.1 This chapter examines (a) the distribution o f responsibilities among national, regional, and local environmental authorities, (b) checks andbalances within andbetween environmental agencies at various levels, (c) cross-sectoral and interinstitutional coordination mechanisms, (d) monitoring capacity, and (e) ways in which stakeholder interests are balanced in decision making?8 The "effectiveness" o f an institution is defined as the extent to which it contributes to improved environmental quality by performing the functions assigned to it under Colombia's 1991 Constitution, Law 99 o f 1993, andrelated decrees. As elaborated in the chapter, however, this i s difficult to measure due to the lack o f available data inenvironmental quality. EnvironmentalInformationSystems 3.2 Law 99 gave the MMA the task o f establishing a Colombian Environmental Information System (Sistema de Informacidn Ambiental de Colombia, SIAC). SIAC has two main functions: to provide governmental entities in the National Environmental System (Sistema Nacional Ambiental, SINA) with the informationthey need for effective environmental management, and to inform Colombians about the state o f their environment and thereby facilitate public participation in environmental management, Decrees issued in 1994 gave the Institute o f Hydrology, Meteorology and Environmental Studies (Instituto de Hidrologia, Meteorologia y Estudios Ambientales, IDEAM) responsibility for directing, coordinating, and operating SIAC. The 2003 decree that created the new Ministry o f Environment, Housing and Regional Development (MAVDT) assigned coordination o f SIAC to the new ministry's General Bureauo f Regional Information, Planning andCoordination. 3.3 There is wide agreement inColombia that indicators are indispensable for the formulationo f new policies and for overall environmental management. There is also widespread recognition that regulatory authorities still have not developed an adequate system o f indicators (Contraloria 2003; Interinstitutional Committee 2002). Efforts to develop environmental indicators have arisen separately at the national and regional levels, and in public and private arenas. These efforts have been more or less independent and uncoordinated. The first concerted national effort along these lines was led by the National Planning Department (DNP), which in 1994 obtained a loan from the Inter-American Development Bank to design **AllenBlackman, RichardMorgenstern, andErnest0Sanchez-Trianaauthoredthis chapter,which draws heavily fromabackgrounddocumentpreparedfor this study by Blackmanandothers (2004a). 27 andimplementthe SIAC. In 1996, the DNP also proposedthe creation of an EnvironmentalManagement and Planning Indicators System that would include 256 indicators. Initially, due to the difficulties inthe design o f this system and later because o f the large number and complexity o f indicators (detailed methodological standards were developed for 177 o f them), the proposals eventually were abandoned (Contraloria 2003; DNP, 2004). 3.4 In2001, the MMA, with technical assistance from the Economic Commission for Latin America andthe Caribbean (Comisi6n Econ6micapara America Latinay el Caribe, CEPAL), undertook a new effort to create environmental sustainability indicators in coordination with national and regional entities and research institutes. InJuly 2002, these groups published a document describing 32 indicators. At about the same time IDEAM, MMA, and various research institutes worked together to develop and publish Colombia's first environmental baseline, which included 149 indicators. According to the Contraloria (2003), however, this effort had a number o f weaknesses mainly related to the. fact that participating institutes were not well integrated and the baseline indicators lacked a unified conceptual framework. Information fiom the diverse entities was basedon different scales, coverage, andcollectionmethodologies, makingintegrationof data difficult (Peiia 2003). Furthermore, resources hadnot been assignedto maintain the informationflow andacquire the technology neededto continue collecting information for this program. 3.5 Efforts are underway to develop indicators at the level o f the Autonomous Regional Corporations (Corporaciones Aut6nomas Regionales, CARS). According to Decree 1300 o f 2002, CARS mustestablish- in agreement with MAVDT-basic indicators for monitoring and evaluating natural resources and the environment. Some CARS have proposed development baselines in their areas with indicators o f both the current state o fthe environment andthe pressuresexerted onnaturalresources andthe environment. 3.6 To evaluate management performance, most CARS have either developed their own indicators or use those formulated by the Ministry. Most o f the indicators that CARs currently use measure administrative processes (such as expenditures on reforestation) rather than environmental impacts (such as deforestation rates). Unfortunately, the data and models designed by IDEAM are not applicable for CARs (Contraloria 2003). MAVDT plans to develop three national indicator systems: (a) environmental sustainability indicators to measure the state o f the environment andnatural resources, (b) environmental management indicators related to the impact o f interventions by environmental management authorities, and (c) sustainable development indicators that allow international comparison. 3.7 Although Colombia has tried to develop environmental indicators, it still is a long way from having an integrated system o f indicators. This is due in part to insufficient data collection infrastructure at the national, regional, and local levels, such as environmental monitoring networks, measurement stations, documentation centers, and basic cartography. Forty percent o f the country's CARS either have no environmental laboratories or have a data collection and analysis infrastructure that does not work. Some CARSthat do have laboratories investvery little intheir operation andmaintenance anddo not operatethem effectively. In2002, less than C$7 billion pesos (1.4 percent o f total CAR investments) were dedicated to laboratory facilities. The absence and poor quality of basic cartography present another serious challenge. Many CARS either lack basic maps oftheirjurisdictions or have not updatedtheir cartographic information inmorethanadecade (Contraloria 2003b). 3.8 The lack o f monitoring stations is a problem. For instance, only 20 CARs have any type o f monitoring station. Ten o f these stations have not registered their networks in the National Catalog o f Monitoring Stations, and only four routinely send information to IDEAM.Most stations do not have the budget necessary for proper maintenance, even though 97 percent o f the stations have been in service for more than 20 years and have significant maintenance backlogs. Of the activities that the measurement stations are required to perform, only a fraction are actually carried out-25 percent o f hydrological measurementsand45 percent o f climatological measurements (Contraloria 2003b). 28' 3.9 A recent review o f the SIAC by the Contraloria (2003b) found that what little data actually were being collected at the CAR level were principally on forestry and had been collected under an agreement with the International Tropical Timber Organization in the mid-1990s. The Contraloria reported that, overall, Colombia "does not have a satisfactory environmental information system" and identified seven factors that limit the development o f the SIAC: IDEAM performs analyses at the national scale, while CARs perform analyses at the regional or local scale. As a result, the data andmodels designedby IDEAMare not applicable for CARs. Limited integration among SINA entities andlack o f a systematic process for data transfer among institutionsprevents the flow o f information. Thus, information captured by regional agencies is not generally usedto help refine IDEAM's data. Limited incentives o f CARs to develop environmental information, which i s reflected in their limitedparticipation at interinstitutionalmeetings on environmental informationplanning. IDEAM's process o fdeveloping anenvironmentalinformationsystemhas lackedcontinuity. IDEAMandCARs often use incompatible computer platforms. IDEAMshould develop network applications that use free software so that CARs and other public and private agencies and stakeholders can use them at low cost. SIAC lacks methodological standards or protocols for data collection, Likewise, few advances have been made in generating standards that would allow validation o f environmental information. Informational planning instruments are not used. The MAVDT, IDEAM, and most CARs lack plans to integrateinformation. SINA's Finances 3.10 Nearly three-quarters o f SINA's self-generated revenue accrue to just eight o f Colombia's 33 As elaborated inChapter 2, most revenue is generated through the mechanisms established under Law 99, principally property taxes, transfers for the sale o f electricity, and national contributions. The CARS' ability to generate revenue from taxes and fees is critically dependent on the size o f their populations, degree o f economic activity, and electricity generation. Not surprisingly, CARs in regions with the largest degree of economic activity and the highest population densities generate the most revenue, while those without such resources have historically been more dependent on national funding and have therefore been hardest hit by adjustments in the federal government budget. In addition, 90 percent o f environmental investments are by the 18 CARs established prior to Law 99 and only 10 percent are by the 15 CARs created by the law itself. 3.1 1 Despitetheir largebudgets, some of the CARs with the largest self-generated income still receive contributions from the national government. Criteria for assigning funds to CARs by the national government are unclear, Mechanisms do exist to even out disparities in CAR revenues. The Environmental CompensationFundwas created in 1996 to redistribute self-generated CAR revenue from the wealthier CARs to the 15poorest CARs. All CARs, except the Autonomous Sustainable Development Corporations (Corporaciones Autbnomas de Desarrollo Sostenibles, CDSs), must contribute 20 percent of their electricity sector transfers and 10 percent o f certain other self-generated resources to the fund. 29 These eight CARS are: CAR, CVC, CDMB, CORANTIOQUIA,CORNARE, CRC, CORTOLIMIA, andCRA. 29 The National Environmental Fund (FONAM) was also meant to finance investments in poor CARS. Finally, national authorities can direct funds to departments and municipalities through the National Royalty Fundestablished under the 1991 C~nstitution.~' 3.12 However, the fundhas not been effective. FONAMhas not been able to meet its objectives due to poor funding. Among other reasons, G6mez-Torres (2003) attributes this failure to the MAVDT's lack o f success in obtaining funds for FONAM from outside sources, and demonstrates that FONAM mainly supports older, better-endowed CARS. The National Royalty Fund is subject to wide cyclical swings in availability and has been characterized by excessive partitioning o f funds among different local, regional, and departmentalprojects andby poor overall quality o fproposals (Shchez-Triana 2001). 3.13 From 1996 to 1998, the Urban Environmental Authorities (Autoridades Ambientales Urbanas, AAUs) receivedfunding from three mainsources: revenue generatedthroughthe mechanisms established , under Law 99 (principally property taxes); transfers from municipalities for environmental management support; andnationalcontributions, which were dividedbetween US$20 million incredits from the World Bank for capacity building and ordinary funds from the MAVDT budget. Property tax revenues and World Bank credits were the largest funding sources. After 1998, however, these sources o f funding were substantially reduced. The Constitutional Court declared that Article 9 o f Decree 1339 o f 1994, which had granted AAUs half o f the property taxes raised by municipalities, was uncon~titutional.~~From 1995 to 1998, the AAUs' self-generated resources were nearly C$189 billion, o f which 86 percent was generated by the AAU for Bogoti (DAMA), 11percent by Cali (DAGMA), 2 percent by Barranquilla (DAMAB), and 1 percent by the Aburri Valley (Aburri Valley Urban Environmental Authority, AMVA). All o f DAMA's funds from property taxes are dedicated exclusively to the Bogoti River decontamination project. DAMAB's and AMVA's low revenues are mainly the result o f a recent decision by the cities o f Barranquilla and Medellin not to transfer property taxes to the AAUs. After 2000, by decision o f the MMAandthe DNP, the AAUs stoppedreceivingenvironmental fees (sobretasaumbiental). 3.14 During1995-2002, 13percent of SINA expenditures for operations and3 percent for investments were assigned to research institutes. One hundred percent o f the funding for operations and 82 percent o f funding for investments was from national appropriations. O f the national funds allocated to the research institutes, fully three-quarters go to IDEAM. Some o f the research institutes have managed to insulate themselves from the fiscal adjustment by seeking outside funding, mainly from international organizations such as the Global Environment Facility (GEF). During 1995-1998, national funding financed 83 percent of the research institutes' new investments. However, during 1998-2002, as the institutes diversified their funding base, this contribution dropped to 49 percent. Collectively, research institutes' investments actually grew by 86 percent during 1998-2001. Despite this success, the research institutes have considerable difficulty financing operational expenses because international funding sources often place severerestrictions on usingfinancial resources for that purpose. 30 In Colombia, royalty payments to departments and municipal governments correspond to a percentage of the production of nonrenewable naturalresources, mainly oil and gas, coal, and nickel. Laws 141 of 1994 and 756 of 2002 establish the royaltiesto be paid for the production of oil and gas and minerals. The royalty law established a system of variable royalty payments of 8 to 25 percentfor the oil and gas sector, basedon the level o f production. Royalties for minerals except petroleum range from 1 to 12 percent. For coal, the royalty rate is 10 percent for mining companiesthat produce morethan 3 million metric tons per year and 5 percent for those that producebelow that level, The highest levels of royalties are for nickel and salt (12 percent). Most of this compensation is distributeddirectly to producingdepartments andmunicipalities. A smallerportion is distributedto all departments and municipalities through the National Royalties Fund (Fondo Nacional de Regalias). Revenues accrued from royaltiesamountedto 1percent ofColombia's GDP in2002. 31 The decisionheldthat these resources must be invested inthe urbanperimeter, but the CARs-not the MUS- areresponsiblefor this investment. 30 3.15 During 1995-2002, 100 percent of the funding for operations and 99 percent of the funding for investments by the National Parks System was provided by nationalappropriations.Although the National Parks Unit has some ability to generate its own revenues from ecotourism fees and concessions, these resources are small and are highly sensitiveto the impact of public safety issues on the tourism sector. The National Parks Unitis tryingto develop revenue streams to pay the system for the environmentalservices it provides, including carbon sequestration, biodiversity conservation, and watershed protection. It hopes to generate revenues fiom carbonsequestration by participating inthe Clean DevelopmentMechanismof the Kyoto Protocol. The current law allows parks to charge a tax for water use, but this mechanismrequires krther legal clarification before it can be implemented.The Parks Systemhasbeen able to raise significant international funds, primarily for biodiversity conservation. For example, during 1996-2000, the Parks System received C$5.8 billion in Dutch donations aimed at developing protection, conservation, and managementactionsineightparksinthe Pacific region(MMA 2002). The Ministry of Environment 3.16 The Contraloria (2003a) found that the MAVDT lacks procedures and documentation to clearly define the activities of its staff. In2002, prior to the mergerofthe Ministries of Environment and Economic Development, the MMA had 290 staff. Table 3.1 presents the staff composition and average salaries. In 1997, three years alter the creation of the Ministry of Environment, a study by the consulting firm, Booz Allen, recommendedbetter-trained and more technically qualified civil servants (Booz Allen Hamilton 1997). Seven years later, in 2004, Blackman and others (2004a) found that despite the efforts carried out there were still serious concerns that the MAVDT's environmentalmanagementneeds strengthening. Table 3.1: Ministry of Environment Staffing and Salaries, 2002 No. of Average annual salaly per Position Educational requirements positions position (Colombianpesos) Director Collegedegree; graduate 11 58,741,902 degree, or 2 years' work experience Advisor Collegedegree; graduate 48 42,080,O 13 degree, or 2 years' work experience Professionals Collegedegree 120 19,937,296 Technicaladministrative Highschool 33 11,722,495 Administrative 78 8,902,171 Total 290 21,171,340 Source: MAVDT (2004). 3.17 The decentralizeddesign of Law 99 affected the MAVDT and CARs. While Law 99 gave CARs a great dealof administrative and fiscal autonomy, it also gave the Ministry of Environment responsibility for leading SINA and, in particular, for overseeing and coordinating the activities of CARs. The Ministry's coordinating function, however, is not optimal. In 1997, three years after the establishment of the Ministry ofEnvironment, a study describedhow "each componentofthe system conceivedof inLaw 99 of 1993 is working inan independentanddivergent manner-ach executes its own Action Planbased on its subjective interpretation of the National Environmental Plan, adapting it according to its own regional needs" (Booz Allen Hamilton 1997). The MAVDT considered that in this area there has been significant progress "in the processof articulating actions through planning instruments:PGAR andPAT" (MAVDT, 2006:6). 31 3.18 Other major evaluations o f SINA generally concur that coordination between the environment ministry andCARs needs strengthening. One analysis citedthat "erratic relations" (particularly inpriority setting andresource allocation) betweenthe MMA andCARs had impairedthe operation o f SINA (Galtin 1998). One recommended reform is to increase integration o f CARs into the planning and policy formulationcarried out by the MAVDT. 3.19 Colombia has developed a strong legal framework for decentralization and institutional coordination. However, lack o f resources and o f information has led to poor implementation. National authorities have a variety o f mechanisms at their disposal to ensure that CARs act in accordance with national policies. First, CARs are required to submit 10-year, 3-year, and 1-year action plans that are tied to the National Development Plans drafted by the executive branch. The Contraloria can set in motion procedures to remove CAR general directors from office for failure to comply with these requirements or failure to carry out their plans. Inaddition, CARs can be sued incourt for developing plans that are not in accordance with the National Development Plan. Second, DNP must approve national budget allocations for CAR investment project^.^' Third, CAR boards o f directors include a representative o f the MAVDT and a representative of the president's office. Fourth, Colombia's control organizations can discipline CARs for failure to implement plans or for abuse of office. Fifth, national authorities have some control over the salaries of CAR staff. Finally, in the past the Ministry o f Environment and other national institutions have contributed investment funds-or have allocated funds contributed by multilateral institutions-and this power of the pursestrings has given them some sway over CAR investment projects. Chapter 4 analyzes CARS' performance, their degree o f decentralization, their governance structure, andtheir subordinate relationships with departmental andmunicipalgovernments. 3.20 Several factors limit the effectiveness o f these mechanisms. First, the ministry has poor information about the investment, policy implementation, andregulatory enforcement activities o f CARs. The performance indicators that CARs currently use typically reflect regulatory processes rather than impacts. For example, CARs often report on the amounts o f money spent rather than how these . investments affect environmental quality. The MAVDT's information about environmental quality at the regional level is limited. Effective coordination is not possible without such basic information. Second, staffing levels inthe national office o f the Delegate Procuruduriu for Environmental Affairs do not allow CARs' performance to be monitored or evaluated, and the Contraloria is severely hampered by lack o f data. As for regulations that mandate intensive planning at the regional level, previous evaluations have concluded that even when CARs do fulfill their planning requirements, they often do so simply to fulfill the letter o f the law rather than to actually guide resource management. New planning requirements established in 2004 may mitigate this problem somewhat. Finally, the current fiscal policy constrains the MAVDT's ability to cofinance investments. 3.2 1 The merger of the Ministries o f Environment andEconomic Development in2003 i s one outcome o f the decision to reduce the national b ~ e a u c r a c yIt~is too early to gauge the overall impact of the . ~ merger, but it is likely to have both advantagesanddisadvantages. 3.22 One o f the perceived disadvantages o f the merger is the sense that it lowers the profile, and potentially the influence, o f the Ministry o f Environment, since Colombia no longer has a Minister of 32 According to the MAVDT, "in the process o f assigning resources to CAR projects, DNP is only responsible for approving resources for projects financed with national budget resources, which are assigned to those CARSthat have less potentialto collect resources" (MAVDT, 2006:6). 33 The 2002-06 administration initially planned to merge the Ministries o f Environment and Agriculture. However, this plan was ultimately changed because o f the belief that merging the Ministries o f Environment and Economic Development could help improve the administration o f infrastructure investments (primarily in sanitation and water), since responsibility for such investments hadhistorically been split betweenthese two ministries. 32 Environment but rather a Vice Minister. Moreover, some issues formerly handled by the Ministry o f Economic Development, such as providinghousing andwater supply inhstructure for the poor, are more urgent than issues associated with environmentalpollution control and management o f renewable natural resources. There are also concerns that since the Ministry o f Economic Development addressed "short- term" problems, while the Ministry o f Environment addressed "medium- and long-term" problems, attention to environmental issues is likely to be postponed. Another concern is that the merger o f the Ministries o f Environment andEconomic Development is likely to create conflicts o f interest, becausethe MAVDT will be responsible both for investing in infrastructure and for ensuring that the environmental impacts from these investments are minimized. 3.23 On the other hand, the merger o f the ministries may generate a number of benefits. First, it may facilitate better administrative coordination o f investments in infrastructure, particularly for water supply and sanitation, which historically has been low. More specifically, large investments in water, and to a lesser degree sanitation, often require environmental impact assessments and permits from authorities at the national level. Second, the merger may help in efforts to integrate or mainstream environmental concerns into planning and decision making in both the infrastructure and the housing sectors. For example, it may help make land use planning an integral component o f decisions on housing projects. Third, the merger may help correct two long-standing biases at MMA: the tendencies to focus on the benefits o f environmental regulation while ignoring costs, and to pay too little attention to urban issues. Because the MAVDT will be responsible for promoting economic development and environmental regulation, it mightbe more aware o ftradeoffs between the benefits andcosts o f regulation. Similarly, the MAVDT's involvement in housing and infrastructure investments in urban areas may force it to focus more on urbanenvironmental issues. 3.24 Evidence shows that the priority o f CARs and the MAVDT is on investments in water basin management, reforestation, and biodiversity conservation. However, because over 70 percent o f Colombia's population lives in urban areas, CARs and the MAVDT should also focus on urban environmental issues such as air quality, natural disasters, sanitationand hygiene, andsolid andhazardous waste management. The MMA's investment spending for 2002 in urban environmental management accounted for less thana quarter o fthe ministry's investment budget (Table 3.2). Table3.2: MinistryofEnvironmentInvestmentBudgetbyIssue,2002 Issue Thousandpesos Percent Naturalresourcesmanagement Strategic ecoregions 357,300 1 Forests 15,299,700 59 Biodiversity 3,652,000 14 Green markets 368,100 1 Urbanquality oflife 227,000 1 Endogenousproductionprocesses 371,500 1 Cleanerproduction(voluntaryagreements with 4,941,600 19 industry) Water 644,200 2 Total 25,861,400 100 Source: Contraloria(2003a). 33 Regulatory Issues 3.25 Although Colombia has extensive environmental regulations, there are many challenges to their being effective. For example, the Contraloria has repeatedly documented major regulatory gaps (Contraloria 2002a), and a recent programmatic audit o f the MAVDT found that the ministry still has not established maximum permissible limits o f pesticides in foods, formulated economic instruments to motivate reduction in use andmanagement o f pesticides, or developed implementing regulations for the Estatuto Unico Forestal or for the Statute on Use and Classification o f Soils, a critical instrument in land use planning (Contraloria 2003a). 3.26 Some regulations are too general or are subject to a gradual weakening. For example, the Contraloria (2003a) notes that the lack o f regulations regarding the scope and applicability o f public hearings has made the use o f such hearings ineffective. With respect to the efficiency o f the environmental licensing system, the Contraloria (2004:23) considers that this "area has been subject to a gradual weakening that would lead in the very short term to its elimination ... Efficiency in this area cannot reduce the time taken to authorize licenses or eliminate the key requirements to guarantee that licensed actions consider all the environmental impacts that they generate." 3.27 Some regulations are prescriptive and o f limited application for the local economic and social context. For example, command-and-control emissions standards sometimes have been adopted, with little modification, fiom more developed countries. According to stakeholders interviewed for the report by Blackman and others (2004), such standards are unrealistic for most firms because they lack the technical informationor other resources neededto adopt andoperate the abatement technology. 3.28 These issues in Colombia's regulations lead to other problems. They contribute to poor coordination between the MAVDT and CARs by making it difficult for CARs to carry out one o f their basic functions-implementing national regulations. They also make it difficult for other institutions in SINA to perform their assigned roles. Incomplete licensing and permitting regulations may lead to inconsistent requirements and enforcement across CARs and may create fertile ground for arbitrary decisions. Amorphous laws andregulations also burden Colombia's judicial system by contributing to the proliferation o f acciones de tutelabrought to protect the environment. Voluntary Regulation 3.29 Since the passage of Law 99 o f 1993, both the MMA andsome CARs have often used a strategy o f developing and enacting regulatory standards and guidelines that are not mandatory. These programs have followed international practices in this area from European countries such as the Netherlands. International practices are rooted instrong enforcement o f command and controlregulations. Instead, two types o f voluntary regulations are commonly applied in Colombia. The first i s to negotiate with polluters clean production agreements (convenios de produccibn limpia) that target either specific sectors (for example, transportation or agriculture) or specific regions (Blackman and others, 2004a). They typically involve a quid pro quo: polluters pledge to improve environmental performance over a specified period and in exchange, the regulator provides a grace period to allow the polluter to achieve compliance. The purpose o f such agreements i s to mitigate the problem o f chronic noncompliance in certain sectors and regions by "building consensus" among polluters on the need for compliance and giving them guidance on how to comply (Blackman and others, 2004a).34Many clean production agreements were signed inthe mid-1990s. Self-reported data collected by the Colombian Association o f Environmental Authorities _____~ 34 According to the MAVDT (2006:6), under "clean production agreements it has never been agreed that the Environmental Authority stops exercising its command and control functions in order to promote compliance with noms andstandards." 34 (Asociacidn Colombiana de Autoridades Ambientales, ASOCAR) indicate that by 2002 CARs had signed a total o f 101cleanproduction agreements(ASOCAR 2002). 3.30 The second type o f voluntary regulation popular in Colombia is the previously mentioned issuance o f environmental guides-manuals that detail options for improving environmental performance in specific sectors. These guides, which typically focus on pollution prevention rather than end-of-pipe abatement strategies, stemmed from the national Cleaner Production Policy issued by the National Environmental Council. Fifty-seven environmental guides have been publishedand cover approximately 60 percent o f all productive sectors. The guides have been written for sectors where licensing is mandatory, and for ones where licensing is not required, such as livestock production. Clean production agreements and environmental guides have both strengths andweaknesses. 3.3 1 The purported strength of clean production agreements is that they buildconsensus for improved environmental performance in sectors or regions where compliance is a chronic problem. Clean production agreements can have an impact, at least at the regional level, and successes include several agreementsnegotiated andadministered by DAMA inB ~ g o t hBut . ~ ~voluntary agreementswill work only insectors and regions where environmental regulatory institutions are strong, andonly as a complement to conventional command-and-control regulations. 3.32 The Colombian environmental guides also have a number of strengths. First, industrial sectors have input into the guides, and therefore they buildconsensus for improved environmental performance. Second, they fill a significant gap in Colombian regulation: the lack o f technical guidance on how emissions standards are to be met. Such gaps imply that emissions standards are unrealistic for most firms, which lack the technical information (or other types o f resources) needed to purchase and operate abatement devices or adopt clean technologies. Third, they clarify how polluters can obtain a license and thereby facilitate consistent and transparent licensing. As discussed below, licensing requirements and processes differ markedly across CARs, and ad hoc licensing is a concern for several firms and farms. In sectors where licensing is required, the guidelines constitute de facto binding(vinculante) regulations, and efforts are underway to give them the legal status o f regulation-that is, to make them de jure binding. Fourth, by improving polluters' technical capacity and establishing uniform standards, environmental guides reduce the transaction costs o f permitting for firms, CARs, and the MMA. Fifth, in sectors where permits are not required, the guides may help firms improve their environmental performance by lowering the informational costs o f pollution prevention and abatement investments. Finally, environmental guides may help firms meet growing demands for cleaner production in the international marketplace. Several sectors require some type o f certification that firms are producing inan environmentally friendly manner. The environmental guides facilitate this certification. 3.33 Notwithstanding these potential benefits, data suggest that clean production agreements, in general, have not succeeded in improving environmental performance. Duringthe grace period specified inthe agreement, polluters do not make any significant new investments. Inany case, regulators have no means o f assessing environmental performance because the clean production agreements do not include indicators or establish a baseline. Thus, the agreements simply end up legitimizing inaction on the part o f both polluters and regulators. Unfortunately, this has been the pattern for most national-level sectoral clean production agreements (Blackman andothers 2004). 3.34 An analysis prepared by Esterling (2003) o f a sample o f 13 voluntary clean production agreements, including both single-sector and multisector agreements and agreements at the national and 35 One suchprogramfocused on small and mediumenterprises inBogotA. A second successfulvoluntary program calledProgramaExcelencia i s not a conventional clean production agreement. It involves rating the environmental performanceofpolluting facilities, andthenpublicizingthe ratings. 35 regional levels, found that many o f the agreements suffered from weaknesses that rendered them ineffective. For example, commitments made by the signatories to the agreements were typically vague and ill-defined. In addition, the agreements did not identify sources of financing for costly pollution abatement and prevention investments, and the legal status o f the agreements was unclear. These conditions created incentives for stakeholders to sign these agreements even if they had no real intention of meeting their commitments, and the resulting compliance with the agreements was quite low. According to Esterling (2003), for example, the coal sector's compliance with its voluntary clean production agreement was ranked zero (on a scale o f zero to 100) on all components that concerned "incentives and financial resources" and "follow-up and evaluation." Similarly, in evaluating electricity sector agreements, eight o f the nine components o f the agreement on "clean production promotions strategies," three o f the four sections on "legal and technical environmental norms," and three o f the five sections on "incentives andfinancial resources" were ranked as zero (Esterling 2003). 3.35 Blackman and others (2004) have also identified a number o f weaknesses in Colombia's 57 environmental guides. For example, they are being used for a purpose other than originally envisioned, and as a result they do not serve that function very well. The guides were conceived as a way o f implementing the national Cleaner Production Policy. Specifically, they were to enable facilities to move beyond compliance with existing command-and-control regulations by adopting clean (pollution prevention) technologies. In sectors where licenses are required, however, they have evolved into guides for achieving compliance with existing regulations. Unfortunately, the guides do not serve this purpose very well. There is often no clear link between existing command-and-control regulations and the information in the environmental guides.Thus, there is no guarantee that a firm that follows the guide's advice will actually meet existing regulatory standards. Moreover, the environmental guides typically provide a limited range o f technological alternatives for pollution prevention andpollution control. These alternatives are not always the most appropriate for all scales and types o f firms in the sector. For example, they may be appropriate for large f m s , but not for the small- and medium-size firms that dominate many sectors. 3.36 By law, the MAVDT is responsible for granting environmental licenses and permits to large facilities and those in specified sectors, such as oil and gas exploration and development o f energy generation. CARs are responsible for the rest. As a result, CARs grant approximately 70 percent o f all environmental licenses and permits. According to Blackman and others (2004) licensing and permitting are problematic in several ways. Both licensing and permitting involve copious redtape and delays that create bottlenecks inthe pipeline for urgently needed investments and economic development. Licensing and permitting requirements are not consistent across environmental agencies. For example, in the MAVDT andinsome CARs, companies buildingroads are requiredto reforest cleared areas, but inothers there i s no such requirement. Moreover, licensing and permitting in some environmental agencies is subject to arbitrary decisions. A root cause o f all o f these problems is that Colombian environmental licensing regulations are often ambiguous. ` 3.37 Evidence shows that enforcement o f a wide variety o f environmental regulations in Colombia varies markedly among CARs, sectors, and sizes and types o f firms. Contributing factors include several of the problems discussed earlier: behaviors that protect the interests o f polluters, low levels o f human and technical capacity, poor information systems, reliance on voluntary regulation, and amorphous regulations (Blackman andothers 2004a). 3.38 Examples illustrating the problems with enforcement abound: inspections are not made, fees are not collected, and institutional deficiencies inhibit enforcement. Other factors contributing to the problem include the limited quantity and reliability o f information, lack of indicators to measure concrete results, lack o f adequate systems for the final disposal o f waste and limited oversight o f compliance with waste 36 disposal norms, andpoor-quality laboratories to verify that the values declared or estimated for billing o f environmental fees correspond to the real contaminationvalues (Contraloria 2003a). NationalEnvironmentalCouncilandNationalTechnicalAdvisoryCouncil 3.39 The National Environmental Council (Consejo Nacional Ambiental) is a consultative group attached to the MAVDT. Its permanent members are drawn from a wide array of institutions, including the MAVDT, the Ministryof Education, the DNP, universities, the private sector, NGOs, andindigenous andAfro-Colombiancommunities. As envisioned inLaw 99, the Council's rolewas to provide aforum to give both public sector and private sector stakeholders a voice in the design o f important national environmental policies. It was meant to produce documents that would have an important impact on policy. The council does not have a permanent staff or institutional support andmeets on an adhoc basis. 3.40 The National Environmental Council does not appear to be playing its intended role. Council meetings now attract upwards o f 100 people, ofien second- or third-tier assistants, and have become simply a formality. The Council has produced more than 30 policy documents, all of which were approved with little debate (Blackman and others 2004). Despite its shortcomings, the council plays the beneficial role o f encouraging MAVDT leaders to interact with various stakeholders, including their counterparts inother ministries. 3.41 Law 99 created the National Technical Advisory Council (Consejo TbcnicoAsesor) to advise the MMA on scientific and technical issues related to environmental policy. Unlike the National Environmental Council, it gives advice on decrees that establish regulations subject to approval by the president. This i s chaired by the vice minister for environment and has five to eight permanent members mainly from the private sector. The Council includes representatives from universities and the private sector, but seems to be dominated by the private sector (Blackman and others 2004). The university representatives seldom participate in the Council meetings. Historically, all council meetings include elected representatives of industry, agriculture, mining, andthe petroleum industry. NationalPlanningDepartment@NP) 3.42 The DNP reviews and approves Colombia's national investment budget andevaluates the impacts of spending. All ministries must submit their budget requests to the DNP for approval. In addition, the DNP coordinates the writing o f the multisectoral National Development Plan (Plan Nacional de Desarrollo) required o f each presidential administration, and serves as technical secretary o f the National Council o f Economic and Social Policy (Consejo Nacional de Politica Econbmica y Social, CONPES). Chaired by the president, CONPES is a high-level multisectoral governance body that includes ministers andprivate sector representatives. It coordinates economic and social policy, approves loans, and issues policy documents. The DNP also wields power by providing technical support to the president on a wide array o f matters, by distributingnational funds to municipalities, andby havingthe authority to negotiate andapprove internationalloans to all Colombian public sector agencies. 3.43 The DNP's internal organization more or less mirrors that o f the Colombian national government: its designated offices deal with each o f the government's various ministries and institutions. Until February 2004, the agency dedicated to the environmental sector was the Environmental Policy Office. This office had two key functions: it helped mainstream environmental functions in a wide array of government institutions and practices by working through the budgeting and planning process and through CONPES, and it monitored and evaluated the impact of investments inthe environmental sector. The Environmental Policy Office was also responsible for coordination between the DNP and the MAVDT.InFebruary 2004 the government phased out this office andscattered its functions amongother DNP offices (Blackman and others 2004a). 37 3.44 UntilFebruary 2004, the principalconcern inthe DNP's relationshipwith CARs was monitoring their environmental investments and assessingtheir impacts. The DNP's responsibility was to ensure that CARs are spending their funds effectively. However, the DNP had considerable difficulty performing this function because CARS lack adequate indicators o f environmental quality. After 2004, the absence o f an environmental policy office at the DNP led it to minimize its monitoringo f CARS'performance. This has widened the gap inenvironmental planning (Blackman andothers 2004a). 3.45 Although plans exist for subsectors within the environmental sector (such as forestry and environmental research), no systematic periodic planning exercise exists to establish priorities across environmental programs and subsectors such as forestry, biodiversity, air pollution, waste management, water resources, and water sanitation. Planningis generally done sector by sector and, as yet, efforts to "break out o f sectoral boxes" and prioritize across programs or sectors have not been successful. During 1994-1 998, efforts were made within the MAVDT to discuss policy documents among subdirectorates, but it was not possible to arrive at shared concepts that would allow discussion of priorities across program areas. According to Blackman and others (2004), this situation has not substantially changed. Sector-by-sector planning is still the norm and there appears to be little discussion o f priority setting across sectors at a national level in SINA. A review o f the most recent National Development Plans reveals little discussion o f consideration o f priorities across environmental sectors ( G a b 1998; DNP 2003). InstitutesofInvestigation 3.46 Law 99 recognizes the critical role that information plays in environmental management. The drafters o f Law 99 established institutes o f investigation to conduct research and collect data needed for public environmental management. Two types o f institutes were created by Law 99: those that primarily have research responsibilities (Alexander von Humboldt Institute, the Institute o f Marine and Coastal Research [Informe del Estado de 10s Ambientes Marinos y Costeros, INVEMAR],the Instituto Amazbnicb de Investigaciones CientiJicas [SINCHI], and the Environmental Research Institute of the PaciJic [IIAP]), andone that primarilyhas data collection responsibilities (IDEAM). 3.47 Various reports have found that coordination among the institutes o f investigation and other SINA entities (particularly the MAVDT and IDEAM) is limited (Contraloria 2003b; IDEAM2001). The primaryfunction o fIDEAMis to organize anddirect environmental data collection inColombia (Law 99 o f 1994, Decrees 1277 and 1600 o f 1994). The Contraloria's 2003 annual report found that the research institutes' work has not supported this function. A key characteristic o f the poor coordination betweenthe institutes o f investigation and other SINA entities i s that the former tend to specialize in research that i s academic and not especially relevant to policy making. A number o f factors contribute to this problem (Blackman and others 2004a). 3.48 For example, the MAVDT needs to strengthen its capacity to articulate SINA's researchpriorities and to inform agendas o f the institutes o f investigation. However, no provision has beenmade inrecent budgets to provide staff time to consider research priorities or to communicate those priorities to the institutes or other researchers (Contraloria 2003a). Furthermore, evidence suggests that the MAVDT has not yet created a planto make effective use o f high-quality, policy-relevant research when it is produced. Illustrating this are the five "red list" books that the Humboldt Institute has prepared on threatened species.36MAVDT staff and local environmental authorities need the information in these high-quality reports to develop land use plans and issue environmental licenses. These books provide so much information, however, that neither the MAVDT nor local environmental authorities have the time-or 36 The red list and reddata books are productsof aWorld ConservationUnion (IUCN) programdesignedto list and develop dataneededfor managementto protectthreatenedand endangeredspecies. 38 sometimes the background-to use them effectively. SINA needs to develop a mechanism to translate scientific research findings into information that is useable by regulatory staff with varying levels o f professional preparation (Blackman andothers 2004a). 3.49 There is room for improving coordination efforts between the research institutes and SINA. Apparently IDEAMoften is not responsive to requests for specific dataj partlybecause it has no resources dedicated to facilitating coordination and is seen as placing a higher priority on research than on data collection (Blackman and others 2004a). 3.50 CARs also contribute to poor coordination between the researchinstitutes andother SINA entities. CARS have critical responsibilities for collecting environmental monitoring data. Facilities are obligated to self-monitor their discharges and then report them to CARS, which inturn are responsible for verifying the data andpassing them on to IDEAM.IDEAMis responsible for certifying that CARs' dataare accurateand for creating a database. However, IDEAM does not have the human and technical capacity needed to perform these functions. As o f late 2003, pilot projects to develop CARs' technical capacity to collect and transmit data to IDEAMhave had limited success. This is undoubtedly due inpart to the slow progress in developing a consistent set o f environmental indicators. For their part, CARS do not see the research institutes as supporting their efforts (Contraloria 2003b). 3.5 1 Finally, the poor coordination between the researchers at the institutes o f investigation andpolicy makers is partly a result o f the different time horizons o f each group. Scientific researcherstend to focus on long-term problems such as biodiversity loss. Policy makers, by contrast, tend to focus on shorter-term issues, the importance of which changes with each administration (Blackman and others 2004a). National funding for research institutes has declined over the past decade. As a result some of the institutes have turned to other sources for financing. This reconfiguration is partly responsible for the disconnect between the research agenda o f the institutes o f investigation and the needs o f the MAVDT and other entities in SINA (G6mez 2003). The situation o f the Humboldt Institute illustrates how the funding situation contributes to poor coordination betweenregulators andthe research institutes. 3.52 Under Law 99, the Humboldt Institute is responsible for conducting research on Colombia's flora and fauna and developing a nationalbiodiversity inventory. The Institute is organized around four themes: biodiversity inventory, conservation biology, valuation, and biodiversity policy and legislation. According to its 2004 personnel list, about 70 percent o f the institute's 150-person staff are scientists, and the remaining are managers andadministrative personnel. The MAVDT contributes 8 percent of the Institute's budget as an outright grant, and another 8 percent in the form o f contracts for specific services. CARS, NGOs, and international donors such as the German bilateral foreign aid agency GTZ and the Global Environment Facility contribute the remainder o f the budget.37To support itself financially, the Institute must pursue topics deemed important by international funding sources. As a result, even though the Institute's board o f directors is comprised o f representatives o f nearly all the major SINA institutions, the research topics it pursues are not necessarily o f central interest to policy makers in SINA. Although the Institute has been the most financially successful o f Colombia's research institutes, it still has considerable difficulty generating sufficient funds.38 3.53 Self-financing o f the investigation institutes can affect coordination in more subtle ways. For example, unlike the other four research institutes, IDEAM depends largely on public sector financing. 37 The Humboldt Institute has 27 permanent staff whose salaries are paid by national government contributions; salaries for researchersand all other project-specific staff are covered by other sources 38 The Humboldt Institute does have a very direct tie to MAVDT policy makers. The MAVDT contracts out several specific functions to the Institute, including implementation of the National Biodiversity Policy. Twenty-seven members of the Institute's staff are currently on contractwith the h4AVDT. 39 Recentnational fiscal policy has ledto requirements that IDEAMcharge for the data it collects. This may limit the IDEAM's ability to influence the direction of nongovernmental research in SINA. This cost recovery policy is problematic because IDEAMdata have become too expensive for a significant number o fresearchersto use (Blackman andothers 2004a). 3.54 Itis importantthat Colombia's research system develop capacity to addressecosystem health and urbanenvironmental issues. None o f the four research-oriented institutes focuses primarily on industrial pollution control and human health. The issue o f the coverage o f research topics aside, an open question i s whether the current configuration o f four research institutes and one data collection institute i s optimal given chronic fundingconstraints and Colombia's environmentalpriority problems (Blackman andothers 2004a). NationalParksSystem 3.55 Colombia's National Parks System (Sistema Nacional de Parques Nacionales) comprises 51 protected areas that fall into four categories: (a) national natural parks, @) flora and fauna sanctuaries, (c) unique natural areas, and (d) forestry reserves. These protected areas encompass approximately 10 percent o f Colombia's territory and include 30 percent o f its headwaters (UAESPNN 2002). Until 1993, an INDERENA office administered protected areas. Law 99 placed the system under the control of an independent office attached to the MMA. In2002, the National Parks System employed 364 staff and 132 contractors. 3.56 The greatest challenge facing the National Parks System is lack o f rule o f law, making it very difficult to enforce regulations that restrict certain land uses in the parks, particularly in areas o f social unrest. About 79 percent o fthe area o f the NationalParks System i s occupied or affectedby this unrest. 3.57 Most deforestation in the national parks i s due to land tenure and shifting agriculture, A related problem is that park boundaries often overlap with other legally designated areas. These areas either explicitly or implicitly allow landuses that are inappropriate for protectedareas. 3.58 Funds for the NationalParks System are generated by three sources: fees charged for ecotourism within the parks, the national budget, and international sources, all o f which have decreased in recent years. Ecotourism andinternational aid have decreaseddue to the continued social unrest. 3.59 The National Parks System is a semiautonomous unit under the MAVDT, but better integration with the MAVDT would enablethe ministryto promotethe policies o fthe National Parks Systemina more effective manner. Currently, the Park System mustrely on the MAVDT to enforce landuse restrictions, and this process is often inefficient. On the other hand, however, the Parks System needs more autonomy so it can raise its own funds and have more control over administration o f its more distant parks. In 2005, the government is incorporating nongovernmental and private sector organizations in the management of national parks, andthe Parks Systemhas contracted a large travel agency for the operation andmaintenance o ftwo nationalparks. PublicParticipation 3.60 The 1991 Constitution envisions a central role for individual citizens and nongovernmental organizations in formulating and implementing environmental policy. In addition to having a right to a healthy environment, citizens have an express duty to protect natural resources andthe environment. The Constitution enables them to do that in three ways: (a) by filing a popular action (accidn popular) to protect the collective right to a clean environment; (b) by filing a compliance action (accidn de cumplimiento) to assure that laws-including environmental laws-are upheld; and (c) by filing anaction 40 requesting injunctive relief (accidn de tutela) to prevent violation o f fundamental rights, including the right to a clean environment where environmental deterioration threatens human health (Iguarh 2001). The 1991 Constitution also specifically requires adoption o f statutes that guarantee community participation in decisions that affect the environment through the right to petition public authorities, public hearings, open meetings, referendums, and standard participation in elections, and, in the case o f the Contraloria, requires adoption o f laws that create systems to allow citizens to monitor public fiscal management at all levels o f government. ControlOrganizations 3.61 Within the Procuraduria General, the Delegate Procuraduria for Environmental Affairs is responsible for oversight o f all environmental authorities in Colombia. Nine lawyers and three technical people staff the office, a level insufficient to carry out its functions. The Procuraduria hopes that this deficiency can be corrected, in part, by an agreement among the Fi~calia,3~ Contraloria, and the the Procurad~ria~'to share evidence. The Procuraduria General views its central function as preventing abuse of office and failure to implement policy. In order to be more effective, each year the Delegate Procuraduria for Environmental Affairs chooses a specific area on which to focus. In2003, for example, it focused onsolidwaste andwastewater treatment plants. 3.62 Environmental staff within the Contraloria flagged a number o f performance-related concerns. For instance, their capacity to carry out oversight has been constrained by the absence o f environmental indicators. This has impeded program evaluation. The Contraloria also has difficulty reconciling heterogeneous data from the various agencies involved in environmental policy including the DNP, the MAVDT, the National StatisticalAdministration Department (DepartamentoAdministrativoNacional de Estadisticas,DANE), andthe Contraloria itself. 3.63 As a result o f the absence of these indicators, the national control offices use administrative indicators o f performance, rather than indicators based on environmental quality. Several interviewees of Blackman and others (2004a) argued that CARS are at least partly responsible for the slow progress in developing indicators. Under current law, the control organizations can set inmotion procedures to remove CAR general directors for failure to comply with CAR action plans. This creates a strong incentive for CARS to block implementation o f effective indicators. The government issued Decree 1200 o f 2004 to establish the framework for environmentalindicators. Judiciary 3.64 The Constitution o f 1991 and Law 99 o f 1993 assign to the judiciary a central role in SINA. Under the 1991 Constitution, every citizen has the right to file public actions in defense o f the Constitutionand the law andto petition authorities. As discussed, the Constitution andimplementing laws and decrees create three causes o f actions that citizens can use to demand protection o f constitutional rights to a healthy environment and implementation o f environmental law.41These formal provisions for access to justice to enforce environmental rightsare extraordinary. 39 The Fiscaliais an entity ofthejudicial branchwith broadadministrative andbudgetaryautonomy, the function of which is to providecitizens with due and efficient administrationofjustice. 40 The Procuraduria is an autonomous entity in charge of upholding universal human rights and the correct functioning ofpublic institutionsprotectingcitizen interest. 41 ConstitutionalArticles 77, 86, 87, 88; Law 393/97; Law 472/98; Law 99/93 Art. 77; Decree 306/92; Decree 2591/92. 41 3.65 There is mixed evidence regarding the effectiveness o f this access. Based on criteria developed by the Access Initiative, a major international effort to promote public participation in environmental management, a national legal system needs: "(i) constitutional guarantees for access to justice; (ii) impartial administrative, judicial, and alternative venues for resolution o f conflicts and remedy; (iii) affordable and timely legal services; and (iv) active education by government on the participation and environmental rights o f the public and how they can use the legal system to protect those rights" (Access Initiative 2004). A number o fthese requirements are still absent inColombia. 3.66 For example, although the 1991 Constitution guarantees access to justice, relatively few Colombians are aware o f this right (Selligson 2001). Less than 30 percent o f respondents to a recent survey knew o f acciones de tutela42even though this particular action was by far the best known, andless than 1percent o f respondents were aware o f the availability o f public hearings or other causes o f actions before the courts. 3.67 Notwithstanding these problems, most evaluations o f acciones de tutela are positive. Survey research has indicatedthat acciones de tutela are the most widely used causes o f action and are viewed as the most effective means of citizen control over government actions (Saez 2003). The Constitutional Court, which hears acciones de tutela, has proved to be a very attractive forum. Through 2001, the number o f claims brought as acciones de tutela in all areas grew at a rate o f 130 percent per year. Over 400,000 such actions were brought in 2000 (Saez 2003). Furthermore, petitioners were opting to bring acciones de tutela in the Constitutional Court instead o f through normaljurisdictional channels because decisions there are perceived to be faster and more principled, and with good reason. Between 1992 and 1995, the Constitutional Court granted almost 40 percent o f the acciones de tutelabrought before it, while the highest court inthe conventional civil court system held for petitioners in less than 7 percent o f cases (Seligson 2001). Conclusions andRecommendations 3.68 Principalproblems within the SINA include the following: (a) insufficient data on environmental quality and institutional performance; (b) suboptimal priority setting across environmental subsectors and programs; (c) inefficient public environmental spending on SINA; (d) limited environmental management capacity at the MAVDT; (e) reliance on voluntary regulations and voluntary clean production agreements that perpetuate noncompliance with existing regulation; (f) suboptimal regulations-for example, command-and-control emissions standards have sometimes been adopted from more developed countries with little or no modification; (g) poor coordination among the MAVDT, CARS, and SINA entities; (h) potential adverse impact from the merger o f environment and economic development, and weak regulations and control agencies; (i)limited technical capacity in some CARS; and (i) weak enforcement-for example, o f the effluent fees that CARScharge to polluters, only one-third are actually collected (Blackman andothers 2004a). 3.69 One o f the main conclusions is that SINA might benefit by establishing a systematic mechanism for priority setting across environmental programs and subsectors. Planning is generally done sector by sector and efforts to break out o f "sectoral boxes" and consider prioritization across programs or sectors have not been successful. This is a common problem in environmental regulatory systems around the world and is partly due to the fact that, in most environmental regulatory systems, day-to-day work is organizedby environmental media or problem areas, such as forestry, water, or air. Lack o f cross-sectoral 42 Acciones de tutela: actions requestinginjunctiverelief; legalproceduresfor the immediateprotectionof fundamentalrights from threatsby authoritiesor individuals. Tutelasprotectcitizens from arbitrary acts o fauthority andfrom actionsby individuals incases inwhich asubordinatingrelation exists. 42 planning contributes to imbalances in budgetary priorities.43For example, a recent audit of the MMA found that biodiversity conservation, reforestation, watershed management, andother rural environmental issues accounted for three-quarters o f the ministry's investment budget, but over 70 percent o f the population lives inurbanareas andis exposed to significant healthrisks. Priority setting across subsectors and programs would be greatly enhanced by improvements in data collection and environmental indicators. However, even with current information sources, greater attention to setting priorities across environmental subsectors would help improve the effectiveness o f environmental management in Colombia. SINA has spent approximately C$5 billion without measurable impact indicators to promote linkages between national and regional priorities, or to increase understanding o f the impacts o f key sectors on the environment. Despite high levels o f expenditures, there is no direct correlation between CAR investments and national environmental priorities." The level o f funding for the environment in Colombiamay be a less important consideration than the efficiency with which funds are spent. (1) Establish a Mechanismfor Setting Priorities across Environmental Subsectors 3.70 Analysis reveals that expenditures on environmental management focus on investments inwater basin management, wastewater treatment, and forestry and biodiversity conservation, with much less attention to urban and rural environmental issues affecting the poor, such as air quality, waterborne diseases, andnatural disasters. To better align resources with the environmental problems that needto be addressed, coordination andanagreed agenda among SINA, the DNP, andthe MAVDT i s necessary, as is a planto strengthen the design, monitoring, and execution o f environmental policies. The areas o f SINA that could be strengthened include: (a) promotion o f environmental health; (b) sustainable urban development; and (c) planning, control, and monitoring o f environmental management. Specific actions include: control o f air pollution; promotion o f hygienic practices; management o f hazardous waste; strategic planning; improvement o f urban life quality; strengthening o f urban development management; anddevelopment ofinstruments ofplanning, monitoringandevaluationof environmentalmanagement. 3.71 Colombia's regional diversity implies that CARSmay set very different goals and may use very different strategies to achieve them.45 Nevertheless, a regular priority-setting mechanism that accommodates this diversity-and the consequent need for policy flexibility-is likely to generate considerable benefits by helping to rationalize and coordinate environmental protection activities across subsectors, regions, administrative levels, and institutions. To set environmental priorities it would be advisable to promote legitimacy and "buy-in" through participatory processes. 3.72 One option is for the MAVDT to require that each CAR periodically perform an assessment o f the relative importance o f various risks to human health and the environment in the CAR'Sterritory. 43 According to the MAVDT (2006:6), "the resource potential of Corporations does not depend on whether the Corporation operated prior to Law 99 of 1993 or if it was created by the law, but rather on the development conditions of its jurisdiction. Taking into account that the most important sources are the percentage of municipal property taxes transferred for environmental management and electricity sector transfers, it is clear that in less developed territories collection ofthe first source is limitedandthat electricity generationprojects do not benefit all Corporations." 44 According to the MAVDT (2006:6), regional and national priorities coincide, given that "in the National DevelopmentPlangeneral areas are identifiedthat shouldbe definedat the regional level inaccordance with their importanceat that level." 45 According to the MAVDT (2006:6), the "objectives of the Corporations and their functions are defined under Law 99 of 1993.What adjusts to their characteristicsis the developmentof actions within the framework ofnational policies. Indevelopingthe planning instruments of the Corporations, advances are being made in the definition of regionalactionpriorities that originatefrom participatoryprocesses." 43 Furthermore, the MAVDT can require that CARs use this comparative risk assessment to guide the allocation o f financial, human, and technical resources. (2) Initiate a Long-term Program to Review andRationalize Regulations 3.73 In the short term it would be advisable to commission an independent study, or use already existing studies, to identify andprioritize challenges with regulations o f environmental statutes, including gaps, inconsistencies, and inappropriate levels o f specificity, and technical requirements that are not appropriate to current local conditions in Colombia. The results o f this analytical effort might help to initiate a long-term program o f rationalizing and reforming environmental regulations. In order to design and implement policies to tackle environmental problems that represent the largest share o f the cost o f environmental degradation, it would be advisable to undertake Strategic Environmental Assessments relating to environmental health, vulnerability to natural disasters, andurban environmental management. (3) Evaluate andRationalize Voluntary Regulation 3.74 A paucity of evidence supports the contention that national-level voluntary clean production agreements have been reasonably successful at promoting compliance with existing regulations-or even at furthering improved environmental performance. This conclusion is in line with international experiences in voluntary regulatory compacts, in both industrialized and developing countries. Thus, further efforts to promote clean production agreements in lieu o f mandatory regulation should be undertaken cautiously, ifat all. At a minimum, any future voluntary agreements should shift the burdeno f proof o f intent to comply onto polluting firms by establishing clear periodic performance milestones (focusing on easily monitored activities) that would needto be met inorder for the agreement to continue inforce. 3.75 The argument for continuedreliance on voluntary environmental guides is stronger. These guides appear to fill a need for user-friendlyofficial guidance information on how firms and farms can improve their environmental performance and how they can comply with regulations which, as discussed above, are often incomplete and unclear. Nevertheless, as discussed, the guides themselves have created confusion. For this reason, efforts might be considered to modify them and to clarify the role they play within SINA. In general, the guides could be revised to ensure they are consistent with the existing command-and-control regulations. (4) Improve the Collection, Management, Dissemination, and Use of Environmental Data 3.76 Becauseinformationis the cornerstone o f improvedenvironmental management within SINA, the MAVDT could consider improving data collection andmanagement at the CAR level andto collate and integrate these data nationally. Toward this end, the MAVDT might establish a system o f indicators o f both environmental quality and o f CAR performance. The indicators could be sufficiently limited in number and sufficiently simple so that it is possible to implement the system despite the modest data collection and management capacity expected to prevail in CARs in the medium term. It is also very important that the system be consistent across CARs to ensure that data from different CARs can be compared and aggregated at the national 46 Accordingto the MAVDT (2006:6), it "should berecognizedthat an effort i s beingmadeto consolidatean information systemand an indicatorssystem. The documentposes arecommendationthat i s alreadyunderwaywith the applicationofDecree 1200of2004 andResolution643." 44 (5) Strengthen Advance Notice of Signijkant Environmental Policy Actions and Provide Opportunitiesfor Public Input 3.77 Public participation in environmental policy making in Colombia could be strengthened by establishing formal procedures to facilitate informing the public when new policies are beingconsidered, providing them opportunities to comment on proposed new policies, and having their comments taken into consideration, at all levels o f government. This would entail: (a) establishing clear procedures for national andregional regulatory agencies to provide early notificationo f the government's intent to draft new regulations or make major changes inpolicy (for example, requiring drafts o fproposedregulations to be published in the Diario Legal and on publicly accessible websites) and for enabling the public to comment on these notices; (b) buildinginto environmental assessment regulations (Decree 1220/05) the opportunity for public comment on investment projects and government programs, plans, and policies; and (c) developing the internal agency's capacity to take comments into consideration in writing regulations andmakingpolicy, and to report back to the public on how public comments were taken into consideration. (6) Improve Coordination between the A44 VDTand CARs andBuild Management Capacity in CARS 3.78 The MAVDT might explore new strategies for improving coordination betweenthe MAVDT and CARs and building management capacity in CARs. A necessary condition is to establish a system for collecting credible data on the institutional performance o f CARs. These data are needed for planning coordinated activities, monitoring compliance with such plans, and monitoring overall institutional performance. Actively disseminating such data-or even publicly disclosing i t - c a n create strong incentives for compliance with coordinated plans and for improved institutional performance. Other Table3.3: Recommendations Priority Recommendation short (S). medium (q, and long term (L) Participating organizations 1, Establishamechanismfor settingpriorities across Congress/MHCP/DNP/ environmental subsectors. S MAVDT/CARs 2. Initiate a long-term program to review andrationalize regulations through strategic environmental assessments relating to (a) environmental health, (b) vulnerability to S DNPMAVDT natural disasters, and (c) urbanenvironmental management. 3. Evaluate andrationalize voluntary regulation. , S-M MAVDT 4. Improve the collection, management, dissemination, and use o f environmental data. S MAVDTIIDEAMICARs 5. Strengthenadvancenotice of significant environmental policy actions andprovide opportunities for public input. S MAVDT 6. Improve coordination betweenthe MAVDT andCARs and MAVDTlCARsJNational Royalty buildmanagementcapacity inCARs. S Fund(FNR)/FONAM 7. Appoint an independentcommission to evaluatethe impacts o fthe merger o f the Environment andEconomic M DNP/MAVDT/IDEAM Development Ministries. 45 potentially complementary mechanisms available include strengthening the capacity and authority of SINA's control organizations, which, in theory, are responsible for ensuring that CARS'activities are in line with the law. (7) Appoint anIndependentCommissionto Evaluatethe Impactsofthe Mergerofthe Ministries of Environmentand EconomicDevelopment 3.79 The government might consider appointing an independent, nonpartisan commission to evaluate the impacts o f the merger on the MAWT's ability to play its role as SINA's "rector" andto regulate the provision o f national-scale infrastructure. (For a definitiono f such projects see Law 99 o f 1993, Art. 52.) The commission's report could be disclosed to the public. Ideally, the commission would serve a dual function: it would provide the data that policy makers need to assess the impacts o f the merger o f the Ministries, and to take any remedial action needed; and it would create incentives for national policy makers to be proactive in ensuringthat potential damages from the merger are minimized. 46 DECENTRALIZATION:A BALANCINGACT Environmental management in Colombia has been decentralized to the Autonomous Regional Corporations (CARS). This uniquefeature of Colombia's environmental management system has several strengths, including financial autonomy and involvement of local stakeholders in environmental governance. The 33 CARS display marked heterogeneity. Analysis of their performance indicates that environmental issues are not always adequately prioritized by the corporations. Other concerns arefinancial andjurisdictional conflicts among corporations, and suboptimal coordination between the MVDT and CARS. There are also challenges to improve their transparency and accountability mechanisms, and to improve guidance#om the national government. Solutions to this include: (a) improvingpriority setting by CARS, (b) reconstructing CARS governance structure, (c) resolving conflicts between CARS and Urban Environmental Authorities, and (d) eliminating those CARS that chronically perform poorly. Background 4.1 Although Law 99 assigns the Ministry of Environment (Ministerio del Medio Ambiente, MMA) the role of leading and coordinating environmental management in Colombia, arguably one of the National Environmental System's (Sistema Nacional Ambiental, SINA's) most important institutional actors are the Autonomous Regional Corporations(Corporaciones Autdnomas Regionales, CARs), which are assigned the role of implementing environmental policy.47This chapter looks at the performance of CARs by examining (a) the sources of CARs' financial resources, (b) the allocation of CAR resources andpriority setting, (c) proposedreforms of CAR governance, (d) conflicts ofinterest relatedto sanitation infrastructure, and(e) the relationshipsbetween CARs andother SINA agencies. 4.2 Colombia's 33 CARs display marked heterogeneity across a wide variety of institutional characteristics including performance, priorities, resource allocation, finances, and human and technical resources. CARs' basic geographical, historical, and socioeconomic characteristics also vary widely. In size, CARSvary from 51 square kilometers (Coralina) to 226,000 square kilometers (Corpamazonia), and in number of municipalities from 2 (Coralina) to 87 (Corpoboyoca). Eight CARSborder on an AAU. SixteenCARs were established prior to Law 99 of 1993. Populationvaries from 81,000 (Coralina) to over 4 million (CVC), and urbanization from 22 percent (Corpoguavio) to 94 percent (CRA). Gross domestic product (GDP) varies from C$100 billion(Corpoguavio) to C$21,509 billion (CVC). Literacy varies from just 68 percent (Codecheco) to 95 percent (Coralha). Perhaps most strikingof all, poverty, measuredas the percentage ofmunicipalities where basicneeds are not metfor more than 53 percentofthe population, varies from 0 percent (CVC and CRQ) to 100 percent (CDA). Many of these socioeconomic characteristics(for example, poverty andliteracy) are highly correlated. 47 Allen Blackman, Richard Morgenstem, and Emesto Sinchez-Triana authored this chapter, which draws heavily from a background document prepared for this studyby a team from Resourcesfor the Future(Blackman and others 2004b). 47 Overall Performanceof CARs 4.3 Since 1993, CARS' principal responsibility has been environmental protection. Therefore, the ideal means o f measuring how well individual CARs are carrying out this responsibility is to assess their impact on environmental quality over time using data on, for example, hectares reforested and water pollution reduced by year. Unfortunately, the quality o f environmental data in Colombia i s poor- although some credible environmental quality data exist for selected natural resources and geographical subregions, very little complete and reliable data exist at the CAR level. A recurring finding o f research on CARs is a paucity o f data on environmental quality and institutional performance at the CAR level. The importance o f this deficiency is impossible to overstate. It hamstrings environmental decision making at the regional, national, and even at the international level. A more immediate implication is that it has placed important limitations on the present analysis o f CARs. 4.4 Given this problem, past studies o f CARs' performance have supplemented existing CAR-level data on environmental quality with "process-related" proxy data, that is, information about whether andto what extent CARs carry out functions associated with environmental protection. Although clearly second best, such data do provide some usehl information about performance. More specifically, they provide an indication o f whether or not necessary (but insufficient) conditions exist for the CAR to have a positive impact on environmental quality. Therefore, proxy data help to identify CARs that are unlikely to have a positive impact on the environment, as opposed to CARSthat actually do have a positive impact. 4.5 The only repository o f extensive CAR-level performance data is maintained by the Colombian Association o f Environmental Authorities (Asociacidn Colombiana de Autoridades Ambientales, ASOSCARs). Most o f the data are self-reported by CARSinresponseto an annual ASOCAR survey. The ASOCAR dataset comprises hundreds o f variables, but much o f it is only tangentially related to Table 4.1: ASOCAR DataVariables with Direct Measures of Performance Variable Indicator Variableswith direct measuresofperformance......... . ... ......__....... .... ....... .... "" .... ._ REFOREST Percentofhectaresreforestedout oftotal susceptible SOLID WASTE Percentofmunicipalitieswith legal solidwaste disposalby 2002 REDUCE-H20- PLN Reductionsintotal suspendedsolids+biochemicaloxygendemandper C$ GDP by 2002 ........................................................................................................... CLEAN-PDN GOALS Percentofcleanproductiongoals............................................................ achievedby 2002 ... .................................................. Variableswithmeasures ofprocessesrelatedto environmentalmanagement... . . . _ __ ._ . .......... _ .... .. ENVIRO-PDM Percentofmunicipalitieswith environmentalsection ofMunicipal Development Plan ENVIRO-POT Percent ofmunicipalitieswith environmentalcomponentinLandUse Plan WATER-MGMT -PLAN PercentofCAR areaunder watershedmanagementplan RAIDS Numberofraidsperhectareperyear SEIZURES Seizures of logs, flora, fauna in2002 VALUE-FINES Value offines by2002 EFF-PERMIT Percentof effluent sources permittedin2002 DIS-PREV-PLAN Percentofmunicipalitieswith disasterpreventionplans ENV-ED-PLAN Percentofmunicipalitieswith environmentaleducationplans SOIL-ZONMG Percentofmunicipalitieswith landzoningplans 48 performance, or is incomplete. Of the complete and consistent variables in the ASOCAR data, there are 14 variables that best measure performance. These variables are presented in Table 4.1. Four o f the 14 performance variables are direct measures o f performance. The remaining 10 perfonnance variables are measures o fprocessesrelatedto environmental management. 4.6 The dependent variable was constructed with two indexes: GRADE 1and GRADE 2. GRADE 1 is based on all 14 variables including direct measures o f performance and process-related proxies, and GRADE 2 is basedonly on the four direct measuresofperformance. The two indexes were constructed as follows. First, in order to be able to compare and aggregate variables measured in different units (for example, RAIDS, the number o f raids per hectare per year, with REDUCE-HZOPLN, the reduction in basic oxygen demand per year), each o f the 14variables was scaled usingthe following formula: Scorei = (Xi - minimum value o fX) 100/(maximum value of X - minimumvalue o fX) * where i indexes each o f the 33 CARs, and X is the performance variable in question. This formula produces a score on a scale o f 1 to 100 where 1 corresponds to the minimum value o f the performance variable and 100 corresponds to the maximumvalue. After the variables were scaled, they were summed. GRADE 1is the sum of all 14 scores, and GRADE 2 is the sum of four scores derived from the direct measures variables. Finally, GRADE 1andGRADE2 were usedto rank CARs. 4.7 Results from the econometric analysis o f these variables by Blackman and others (2004b) indicate that three socioeconomic characteristics are correlated with overall performance: (a) whether the CAR was established prior to Law 99 o f 1993t8(b) the percent o f municipalities inthe C A p where the basic needs o f more than 50 percent are not met (poverty); and (c) the natural log o f geographic area in square kilometers. CARs established prior to Law 99 are considered to be more effective because they have stronger institutions and more political and popular support. At least two factors may explain the poverty result. First, considerable research suggests a link between poverty and environmental degradation (Duraiappah 1998). Therefore, CARs with higher rates o f poverty may face more significant challenges inmitigatingenvironmental problems. Second, poorer CARs may generate lower tax revenues and have a limited supply of environmental professionals in both the public and private sectors. As a result, such CARs may have to make do with relatively low levels o f financial andhumanresources. The explanation for those CARs that have geographically smaller jurisdictions and that performrelatively well is fairly obvious-such CARs presumably have more financial, managerial, and technical resources to devote to each hectare. The econometric analysis also shows a very low correlation with some characteristics such as revenues (normalized as total spending per CAR inhabitant) and number o f staff, among others. Allocation of CAR Resources and Priority Setting 4.8 Collectively, CARS invested C$331,418,152,500 in 524 projects in 2001. The number o f investment projects per CAR ranged from 4 (CVS) to 84 (CAM) while the size o f the investment projects ranged from C$200,000,000 (US$65,000) to C$93,184,000,000 (US$5 1.4 million). The size o f the average investment project was C$632,477,000. To determine how CARs allocated their investment funds across environmental subsectors, each investment project can be placed into one o f 22 different categories, which are then aggregated into several meta-categories (Table 4.2): 48 According to the MAVDT (2006:7) the "Corporations' resources are associatedwith the structuralconditions of development and not with their seniority. Some of the Corporations createdprior to Law 99 are CORPOCESAR, CORPAMAG, and CORPONAIUNO, which are among the 15 with the fewest resources, and Corporations such as CORANTIOQUIA,whichwas createdbyLaw 99 andis one ofthosewith the mostresources." 49 Table 4.2: Cateaorizationof CAR InvestmentProiects _ _ Flora andfauna conservation 1. Forestandecosystemconservation 2. Protectedareas 3. Green markets __4. Pollution Air pollutioncontrol 5. Solidandhazardouswaste management 6. Cleantechnologies 7. Industrial pollution controlprojectscoveringmultiple or unspecifiedmedia, particularly constructionofmunicipal wastewater treatmentplants 8. Wastewater infrastructure 9.__ Water quality control other thanwastewater infrastructure _. __-__ Water Quantity 10. Drinkingwater supply 11. Water quantity, general 12. Irrigation 13,- Other Water, general or unspecified 14. Soil conservation 15. Coastal andmarineresourcesmanagement 16. Natural disaster prevention(including flood control) 17. Mosquito control 18. Researchandinformation gathering 19. Environmentaleducation 20. Operations-relatedgeneralactivities(including planning, legalactions, monitoring andcontrol, and institutional strengtheningwhere environmentalmediaare not specified) 21. Community andterritorial entity activities (includingjoint activitieswith departments, municipalities,NGOs, andindigenousandAfro-Colombian communitieswhere natureofactivity i s not specific) 22. Other or undeterminedactivity 4.9 According to Blackman and others (2004b), an analysis o f the distribution o f investment funds andprojects among the 5 meta-categories and22 categories for each CAR reflects two important trends, First, CARs allocated a relatively large percentage o f funds-1 1 percent, the third-largest percentage outside o f "flora and fauna conservation" and construction o f municipal wastewater treatment plants-to projects in the "operations-related general activities" category (20). This category includes projects that, asjudgedby their titles, would be more accurately categorized as operations expenditures than investment expenditures. Examples include projects titled "Legal Advice on the Defense o f Institutional Interests," "Strengthening o f Monitoring and Control Activities," and "Participation in Environmental and Natural Resources Associations and Events." Blackman and others (2004b) offer a hypothesis o f why these are classified as "investment projects," explaining that some CARs intentionally mask operational expenditures as investment expenditures in response to legal and institutional pressures to limit operational e~penditures.4~ 4.10 The CARs' aggregate investment data suggestthat, likethe MAVDT, their investment allocations reflect a bias against air pollution control, control o f waterborne diseases, and reduction o f vulnerability to natural disasters. The greatest percentage o f investment funds-35 percent-appears to have been 49 Accordingto the MAVDT (2006:7) it is "clear that allprojectsbear operatingcosts inherent to their objectives." 50 devoted to construction o f wastewater treatment plants. Infact, the lion's share o f this investment was in just one category, "wastewater infrastructure," which accounted for 30 percent o f total investment. Moreover, investments in wastewater infrastructure comprised a small number o f very expensive wastewater treatment plants. In 2001, all 33 CARs funded only 11 projects in this category, but the average cost o f eachproject was C$9,078,200,454. (Note also that municipalities anddepartments already make sizable investments in sanitation infrastructure). In any case, leaving aside "wastewater infrastructure," investments inall o f the remaining categories comprising "industrial pollution control"- including "solid and hazardous waste management," "clean technologies," "industrial pollution control other," and "water quality other"-accounted for only 5 percent o f total funds invested by CARs, and they accounted for only 12percent o fthe total number o f investment projects. 4.11 Therefore, the analysis suggests that CARSdevote a large percentage o f their investment funds to pollution control, when inactuality the majority o f these funds were spent on buildinga small number o f very expensive wastewater treatment plants, and relatively few b d s were spent on any other pollution projects.50By contrast, CARs devoted fully 28 percent o f their investment funds to projects in the "flora and fauna conservation" meta-category, including those falling under "forest and ecosystems conservation" (category l),"protected areas" (category 2), and"green markets" (category 3). Allocation of CAR Resources to the Most Pressing Environmental Problems 4.12 A different question is whether individual CARs allocate their investment funds to their most pressingenvironmental problems. Factors for this determination include: (a) the severity o f different types o f environmental risks in the area under its jurisdiction, and (b) the extent to which CARSfocus their investment funds on these risks. IfCARs are allocating investment spending in a rational manner, that is, based on an assessment o f the severity o f different risks, then there should be a correlation between (a) and (b). For example, CARs in which deforestation rates are relatively high should be spending a relativelyhighpercentage o f their investment funds on "flora andfauna conservation,'' and vice versa. 4.13 Unfortunately an analysis o f this kind is limited by the availability o f appropriate data. For example, data on environmental risks that exactly match these categories o f investment spending are not available. Instead, data on environmental risks associated with some o f these categories o f investment spending must be used. Some categories o f spending rely on questionable and imperfect proxies for the severity o f environmental risks, such as those for water pollutionandair pollution. The proxy usedfor air pollution is the percentage o f deaths from respiratory illness, but it i s widely known that a wide range o f factors unrelated to outdoor or indoor air pollution affect the incidence o f respiratory illness, including smoking. Similarly, wastewater treatment is not correlated with gastrointestinal illness, including basic sanitation. A second data limitation is that some o f the environmental risk data are quite imprecise. In particular, some o f it was collected at the department level and converted to the CAR level using population- or land-area-based weights. Moreover, as noted, the categorization o f spending is imprecise. Given these data limitations, an analysis o f whether CAR spending i s allocated rationally is not precise. Nonetheless, it can shed light on the question o f whether there are gross imbalances in the allocation o f investment spending across categories. 4.14 To compare the severity o f different types o f the environmental risks ineach CAR with the extent to which CARs focus their investment funds on these risks, the severity o f the riskposed by a certain type o f environmental risk in each CAR can be ranked as "high," "medium," or "low," depending on whether the CAR ranks in the top, middle, or bottom trecile o f the distribution o f the appropriate measure o f In order to deal with organic discharges, wastewater treatment plant constructionhas grown significantly in recent years. By 1990, less than 1 percent of the urbanpopulationhadwastewater treatment coverage (Contraloria 2002b). None ofthose wastewater treatmentplantsremovespathogensor toxicpollutants. 51 environmental risk across all 33 CARs. For instance, the risk to flora andfauna ineach CAR i s ranked as "high" when the deforestation rate in that CAR is in the top trecile o f the distribution o f deforestation rates across all 33 CARs. A similar method is used for ranking the extent to which CARs focus their investment funds on a certain risk. The percentage o f investment funds allocated to addressing a certain risk in each CAR i s ranked as "high," "medium," or "low," depending on whether the percentage o f investment funds spent on that risk ranks inthe top, middle, or bottom trecile o f the distribution o f these percentages across all 33 CARs. The purpose o f choosing coarse (high, medium, low) categories o f risk is to match the precision o f the rankingwith the precisiono fthe data on environmental risks. 4.15 After the severity o f different types o f environmentalrisks and the extent to which CARs focus their investment funds on these risks have been ranked, these two rankings can be compared to determine whether CARs have "overinvested" or "underinvested" in certain types o f risks. A CAR i s said to have underinvested in a given type o f risk when the risk is ranked as either "high" or "medium" but the CAR investment spending i s ranked as "low." A CAR is said to have overinvested in a certain type o f risk whenthe risk is ranked as "low" but the CAR investment spendingis ranked as "medium" or "high." For example, CORPAMAG has underinvested inflora andfauna ifdeforestation rates inCORPAMAG are in the top or middle trecile o f rates for all CARs, but CORPAMAG's spending on flora and fauna preservationis inthe bottomtrecile. 4.16 The data presented in Tables 4.3A-F suggest that CARs' allocations o f investment spending across differentrisks do not alignparticularly well with the severity o f these risks. For all but one type o f risk-flora and fauna loss--CARs underinvested in the risk far more than overinvested. For soil degradation, 54 percent o f CARs underinvested in this risk, while no CARS overinvested. For natural disasters, 61 percent o f CARs underinvested, while only 3 percent overinvested. For water supply and sanitation, 33 to 66 percent o f CARs underinvested (depending on what measure o f spending is used) while 3 to 15 percent overinvested. For air pollution, 33 to 55 percent o f CARs underinvested. Finally, for solid waste management, 36 to 45 percent o f CARs underinvestedwhile 18 to 27 percent seem to be overinvesting. Allocation of CAR Investment Spending to Priorities Established in their PATS 4.17 Law 99 places considerable emphasis on planning. CARs are requiredto draft a 10-yearRegional Environmental Management Plan (Plan de Gestidn Ambiental Regional, PGAR), a Three-year Action Plan (Plan de Accidn Trienal, PAT), andAnnual InvestmentOperating Plans (POIAs). All o f these plans are required to align with the National Development Plans draftedby every newly elected president o f the Republic. Presumably, then, to the extent the various plans establish priorities for investment, the planning process provides a possible mechanism for priority setting. Obviously, however, a necessary condition for planning to serve this end is that CARs must actually comply with their plans. By comparing investment plans and actual investment spending for four case-study CARs (Cundinamarca CAR, Corantioquia, CRA, and Cardique), conclusions can be drawn about how effectively CARs comply with their plans. The results o fthe analysis arepresentedinTables 4.4 A-D. 52 Table 4.3A. Severity of Riskversus Percent, 2001 Total Investment by CAR: Soil Erosion Cost of soil erosion Percent total investment CAR (Pesos) in soil conservation ~ CAM High Low CAR Cundinamarca High Low CARDER Low Low CARDIQUE Low Low CARSUCRE Low Low CAS High Low CDA NIA Low CDMB Medium High CODECHOCO NIA Low CORALINA NIA Low CORANTIOQUIA High High CORMACARENA High Low CORNARE High Low CORPAMAG Medium Low CORPOAMAZONIA NIA Low CORPOBOYACA High High CORPOCALDAS Medium Low CORPOCESAR Low Low CORPOCHIVOR Medium Low CORPOGUAJIRA Low Low CORPOGUAVIO Medium Low CORPOMOJANA Low Low CORPONARII~O Medium Low CORPONOR NIA Low CORPORINOQUIA NIA Low CORPOURABA Medium Low CORTOLIMA High Low CRA NIA Low CRC Medium Low CRQ Low Low CSB Low Low cvc High High cvs NIA Low YOCARsUnderinvest 54 %CARs Overinvest 0 53 Table 4.3B. Severity of Riskversus Percent, 2001 Total Investment by CAR: Flora andFaunaDegradation Annual average % change in Percent total investmentin CAR forest cover, 1 9 8 6 1996 flora andfauna conservation CAM Low Medium CAR Cundinamarca Low Low CARDER Low Medium CARDIQUE High Low CARSUCRE High Low CAS Low Low CDA ' Medium High CDMB Low Low CODECHOCO Medium High CORALINA NIA Medium CORANTIOQUIA Low High CORMACARENA Medium High CORNARE Medium Low CORPAMAG High Medium CORPOAMAZONIA Medium Low CORPOBOYACA Medium Low CORPOCALDAS High High CORPOCESAR Low Medium CORPOCHIVOR Medium Low CORPOGUAJIRA Medium Low CORPOGUAVIO Low High CORPOMOJANA High Low CORPONARIRO Low Medium CORPONOR Low High CORPORINOQUIA High Medium CORPOURABA Medium High CORTOLIMA High High CRA High Medium CRC Medium Medium CRQ High Medium CSB High High cvc Low High cvs High Medium %CARsUnderinvest 24 %CARsOverinvest 24 54 Table 4.3C. Severity of Riskversus Percent, 2001Total Investmentby CAR: Natural Disaster Prevention Average %population affected by natural disasters, Percent investmentin natural CAR 1997-2003 disasterprevention CAM Medium Low CARCundinamarca Low Low CARDER Medium Low CARDIQUE High Low CARSUCRE High Low CAS Low Low CDA High Low CDMB Low Low CODECHOCO High Low CORALINA Low Low CORANTIOQUIA Low Low CORMACARENA Medium Low CORNARE Low Low CORPAMAG High Low CORPOAMAZONIA High Low CORPOBOYACA Medium Low CORPOCALDAS Low Low CORPOCESAR High Low CORPOCHIVOR Medium Low CORPOGUAJIRA Medium Low CORPOGUAVIO Low High CORPOMOJANA High Low CORPONARIRO Medium Low CORPONOR Low Low CORPORINOQUIA High Low CORPOURABA Low Low CORTOLIMA Medium Low CRA Low Low CRC Medium Low CRQ Medium Low CSB High Low cvc Low Low cvs High High % CARSUnderinvest 61 %CARSOverinvest 3 55 Table 4.3D. Severity of Riskversus Percent, 2001Total Investment by CAR: Water Pollution %Investment in water %Investment in water %Deathsfrom supply and sanitation supply and sanitation CAR gastrointestinal disease (conservative estimate) (liberal estimate) CAM Medium High High CARCundinamarca Medium High High CARDER Medium Low High CARDIQUE Medium Low Medium CARSUCRE Medium Medium Medium CAS High High Medium CDA High Low Low CDMJ3 High High High CODECHOCO Low High High CORALINA High Low High CORANTIOQUIA Medium Low Low CORMACARENA Low High Medium CORNARE Medium Low Low CORPAMAG Low Medium High CORPOAMAZONIA Low Low Low CORPOBOYACA Low High Medium CORPOCALDAS High Low Low CORPOCESAR High High Medium C0RP0CHW0R Low Low Low CORPOGUAJIRA Low Low Low CORPOGUAVIO High Low Medium CORPOMOJANA Low Low Low CORPONARIRO Medium Low Low CORPONOR High Low Medium CORPORINOQUIA Medium Medium Medium CORPOURABA Low Low Low CORTOLIMA Medium High High CRA High Low High CRC Low High High CRQ High Medium Medium CSB High High High cvc Medium Medium Medium cvs Low Low Low % CARSUnderinvest 33 15 %CARSOverinvest 15 15 56 Table4.3E. Relative Severity of Riskversus RelativeIntensityof 2001 Investment by CAR: Air Pollution %Iinvestment in air %Investment in air %Deathsfiom pollution management pollution management CAR respitory illness (conservative estimate) (liberal estimate) CAM High Low Medium CAR Cundinamarca High High Medium CARDER High Low Low CARDIQUE Medium Low High CARSUCRE Low Low Low CAS Low Low Medium CDA High Low Low CDMB Medium High Medium CODECHOCO Low Low Low CORALINA Medium Low Low CORANTIOQUIA High High High CORMACARENA Medium Low Low CORNARE High Low Low CORPAMAG Medium Low LOW CORPOAMAZONIA Medium Low High CORPOBOYACA Low High High CORPOCALDAS Medium Low High CORPOCESAR High Low Low CORPOCHIVOR Low Low Low CORPOGUAJIRA Medium Low High CORPOGUAVIO High Low Medium CORPOMOJANA Low Low Low CORPONARIRO Low Low High CORPONOR Low Low High CORPORINOQUIA High Low High CORPOURABA Low Low Low CORTOLIMA Medium Low Low CRA Medium Low Low CRC Medium Low Low CRQ High Low Low CSB Low Low High cvc High High High cvs Low Low Low %CARsUnderinvest 55 33 %CARs Overinvest 3 15 57 Table4.3F. RelativeSeverityof Riskversus RelativeIntensityof 2001Investment bv CAR: Solid Waste % Total investment in solid % Total investment in solid %of solidwaste waste management waste management CAR disposed of legally (conservative estimate) (liberal estimate) CAM Medium High High CARCundinamarca Low High Medium CARDER High .Low Low CARDIQUE Low High High CARSUCRE High Low Low CAS Medium Low Medium CDA Low Low Low CDMB High High Medium CODECHOCO Low Low Low CORALINA Low Low Low CORANTIOQUIA Medium Low Medium CORMACARENA Medium Low Low CORNARE Medium Low Low CORPAMAG High Low Low CORPOAMAZONIA Low Low Medium CORPOBOYACA Medium High High CORF'OCALDAS High Low High CORF'OCESAR High Low Low CORPOCHIVOR Low High High CORPOGUAJIRA Medium Low High CORPOGUAVIO Low Low Medium CORF'OMOJANA Low LOW Low CORPONARIRO High Low Medium CORPONOR High Low High CORPORINOQUIA High Low High CORPOURABA Low Low Low CORTOLIMA Medium Low Low CRA Low High High CRC High Low Low CRQ Medium High High CSB Low High High cvc Low High Medium cvs Low Low Low %CARsUnderinvest 45 24 % CARs Overinvest 18 24 58 Table4.4A. InvestmentSpending:Planned(PAT) versus Actual (2001) for CundinamarcaCAR Spending ('000pesos) Spending (%) No.projects Category PAT Actual PAT Actual PAT Actual Flora and fauna (sum 1-3) 1,369,000 5,035,000 2 5 1 6 1.Forest andecosystemmanagement 0 1,133,000 0 1 0 2 2. Protectedareas 1,369,000 3,902,000 2 4 1 4 3. Greenmarkets 0 0 0 0 0 0 Industrialpollution(sum4-9) 30,67 1,000 70,907,000 43 76 1 5 4. Air pollution control 0 410,000 0 0 0 1 5. Solid andhaz. waste management 0 600,O 00 0 1 0 1 6. Clean technologies 0 99,000 0 0 0 1 7. Industrialpollutionothedgeneral 0 0 0 0 0 0 8. Wastewater infrastructure 0 69,798,000 0 75 0 2 9. Water quality other 30,671,000 0 43 0 1 0 Water quantity(sum 10-12) 20,500,000 3,226,000 29 3 4 4 10. Drinking water supply 0 0 0 0 0 0 11. Water quantity 20,500,000 1,526,000 29 2 4 3 12.Irrigation 0 1,700,000 0 2 0 1 Other (sum 13-22) 17,994,088 4,O 16,000 26 5 8 21 13. Water otherlgeneral 0 6,030,000 0 6 0 3 14. Soil conservation 2,656,000 0 4 0 1 0 15. CoastaYmarinemanagement 0 0 0 0 0 0 16.Naturaldisasterprevention 0 0 0 0 0 0 17. Mosquitocontrol 0 0 0 0 0 0 18.Researchinformation 88 3,734,000 0 4 0 6 19. Environmentaleducation 978,000 964,000 1 1 1 3 2O.Operations-related general activities 7,878,000 3,088,000 11 3 2 8 21. Joint com. andterritor.entityactivities 6,482,000 200,000 9 0 4 1 22. Other or undetermined 0 0 0 0 0 0 TOTAL 70,534,088 93.184.000 100 100 14 36 59 Table 4.4B. InvestmentSpending: Planned(PAT) versus Actual(2001) for Corantioquia Spending('000 pesos) Spending (%) No.projects Category PAT Actual PAT Actual PAT Actual Flora andfauna (sum 1-3) 14,307,000 10,637,600 35 32 5 10 1.Forest andecosystemmanagement 11,2 17,000 7,457,600 28 22 4 8 2. Protectedareas 3,090,000 3,090,000 8 9 1 1 3. Green markets 0 90,000 0 0 0 1 Industrialpollution (sum 4-9) 844,000 3,134,902 2 9 1 4 4. Air pollution control 0 1,939,902 0 6 0 1 5. Solid andhaz. wastemanagement 0 0 0 0 0 0 6. Clean technologies 0 0 0 0 0 0 7. Industrialpollution othedgeneral 844,000 1,195,000 2 4 1 3 8. Wastewater infrastructure 0 0 0 0 0 0 9. Water quality other 0 0 0 0 0 0 Water quantity (sum 10-12) 6,820,000 257,260 17 1 1 1 10. Drinkingwater supply 0 0 0 0 0 0 11.Water quantity 6,820,000 257,260 17 1 1 1 12. Irrigation 0 0 0 0 0 0 Other (sum 13-22) 18,389,000 19,219,238 46 58 14 22 13. Water othedgeneral 0 820,000 0 2 0 1 14.Soil conservation 1,360,000 1,060,000 3 3 1 1 15.CoastaYmarinemanagement 0 0 0 0 0 0 16.Natural disasterprevention 0 0 0 0 0 0 17. Mosquito control 0 0 0 0 0 0 18. Researchinformation 4,520,000 4,145,806 11 12 4 10 19. Environmental education 2,260,000 810,000 6 2 1 2 20. Operations-relatedgeneralactivities 1,219,000 8,533,432 3 26 4 3 21, Joint corn. andterritor. entity activities 9,030,000 730,000 22 2 4 3 22. Other or undetermined 0 3,120,000 0 9 0 2 TOTAL 40,360,000 33,249,000 100 100 21 37 60 Table4.4C. InvestmentSpending: Planned(PAT) versus Actual (2001) for CRA Spending ('000 pesos) Spending (%) No.projects Cateporv PAT Actual PAT Actual PAT Actual Flora andfauna (sum 1-3) 1,159,867 2,162,856 17 28 2 3 1. Forestandecosystemmanagement 1,159,867 2,162,856 17 28 2 3 2. Protectedareas 0 0 0 0 0 0 3. Greenmarkets 0 0 0 0 0 0 Industrialpollution (sum4-9) 900,000 900,000 13 12 1 1 4. Air pollution control 0 0 0 0 0 0 5. Solid andhaz. waste management 0 900,000 0 12 0 1 6. Clean technologies 0 0 0 0 0 0 7. Industrialpollution othedgeneral 900,o00 0 13 0 1 0 8. Wastewaterinfrastructure 0 0 0 0 0 0 9. Water quality other 0 0 0 0 0 0 Water quantity(sum 10-12) 0 0 0 0 0 0 10.Drinkingwater supply 0 0 0 0 0 0 11.Water quantity 0 0 0 0 0 0 12. Irrigation 0 0 0 0 0 0 Other (sum 13-22) 4,636,144 4,636,144 69 60 4 6 13. Water othedgeneral 2,574,000 2,574,000 38 33 1 2 14. Soil conservation 0 0 0 0 0 0 15,CoastaVmarinemanagement 790,000 790,000 12 10 1 1 ' 16.Naturaldisaster prevention 0 0 0 0 0 0 17.Mosquito control 0 0 0 0 0 0 18.Researchinformation 272,144 0 4 0 1 0 19.Environmental education 0 272,144 0 4 0 1 20. Operations-relatedgeneral activities 1,000,000 900,000 15 12 1 1 21. Joint com. andterritor. entity activities 0 100,000 0 1 0 1 22. Other or undetermined 0 0 0 0 0 0 TOTAL 6,696,011 7,699,000 100 100 1 I 10 61 Table4.4D. InvestmentSpending: Planned(PAT)versus Actual(2001) for Cardique Spending ('000 pesos) Spending (96) No.projects Category PAT Actual PAT Actual PAT Actual Flora andfauna(sum 1-3) 761,877 761,876 13 13 4 3 1. Forest andecosystemmanagement 650,000 761,876 11 13 3 3 2. Protectedareas 0 0 0 0 0 0 3, Greenmarkets 111,877 0 2 0 1 0 Industrialpollution(sum4-9) 293,000 743,000 5 13 1 3 4. Air pollutioncontrol 0 0 0 0 0 0 5. Solidandhaz. waste management 293,000 293,000 5 5 1 1 6. Cleantechnologies 0 0 0 0 0 0 7. Industrial pollutionothedgeneral 0 450,000 0 8 0 2 8. Wastewater infrastructure 0 0 0 0 0 0 9. Water quality other 0 0 0 0 0 0 Water quantity (sum 10-12) 900,000 900,000 16 16 3 3 10. Drinkingwater supply 0 0 0 0 0 0 11.Water quantity 900,000 900,000 16 16 3 3 12. Irrigation 0 0 0 0 0 0 Other (sum 13-22) 3,700,000 3,250,000 65 57 15 13 13.Water othedgeneral 550,000 550,000 10 10 2 2 14. Soil conservation 0 0 0 0 0 0 15. CoastaVmarinemanagement 950,000 950,000 17 17 3 3 16.Natural disasterprevention 0 0 0 0 0 0 17. Mosquito control 0 0 0 0 0 0 18. Researchinformation 600,O 00 300,000 11 5 2 1 19. Environmentaleducation 200,000 200,000 4 4 1 1 2O.Operations-related general activities 600,000 600,000 11 11 2 2 21. Jointcom. andterritor. entity activities 550,000 400,000 10 7 4 3 22. Other or undetermined 250,000 250,000 4 4 1 1 TOTAL 5,654,877 5,654,876 100 100 23 22 62 4.18 As illustrated in Table 4.4A, Cundinamarca CAR'S planned investment spending did not align well with actual investment. Even though actual investment spending (C$93,184,000,000) exceeded planned spending (C$70,543,088,000) by over C$20 billion, CAR does not appear to have investedin a good number o f the projects listed in its PAT for 2001, and, conversely, it appears to have invested in a good number o f projects that were not listed in its 2001 PAT. For example, in the "Pollution Control" meta-category, CAR didnot invest ina C$31billion water quality project that was listed in its PAT, and it did invest ina C$70 billion wastewater infrastructureproject, andseveral other urbanpollution control projects, that were not listed in its PAT. In the "Water Quantity" meta-category, CAR invested only approximately one-sixth o f the total amount listed in its PAT. Finally, in the "Other" meta-category, although CAR invested around C$4 million less than the planned amount, the distribution o f projects within this meta-category didnot matchplannedspending. 4.19 Compared to Cundinamarca CAR, Corantioquia's planned investment spending matches its actual spending fairly well. Nevertheless, some significant discrepancies exist between actual andplanned spending. Actual total investment spending (C$33 billion) fell 18 percent below planned total spending (C$40 billion). Inthe "Flora and Fauna" category, Corantioquia spent approximately C$3 billion less than planned on "Forest and Ecosystem Management" and approximately C $ l billion more than planned on "Green Markets." In the "Pollution Control" meta-category, Corantioquia evidently canceled a planned air pollution control project and, therefore, spent approximately C$2 billion less than planned inthis area. Inthe "Water Quantity" meta-category, Corantioquia spent 4 percent of the amount planned on a water quantity project. Finally, inthe "Other" category, Corantioquia spent more or less the planned amounts in each subcategory. 4.20 CRA's planned investment spending matches its actual spending quite well. Actual total investment spending (C$7.7 billion) exceeded planned total spending (C$6.7 billion) by C $ l billion. The C $ l billion discrepancy appears to be due to the fact that CRA spent C$2.2 billion on "Forest and Ecosystem Management" instead o f the C$1.2 billion planned. Otherwise, actual spending more or less aligns with planned spending. 4.2 1 Finally, Cardique's actual investment spending also matches its planned spending quite well. Actual total investment spending (C$5.7 billion) and planned total investment spending (C$5.7 billion) match almost exactly. The only significant discrepancies betweenplanned andactual spending arise from the fact that Cardique appears to have cancelled a planned C$112 million project inthe "Green Markets" category andto have developed anunplannedC$450 millionindustrialpollution project. 4.22 Insum, actual investment spending aligns well with planned investment spending for two of the four case study CARs-CRA and Cardique. The matchbetweenplannedandactual spending is poorer for Corantioquia, and poorer still for CAR. Conclusive evidence on the extent to which CARs abide by the plans laid out intheir PATs would require additional analysis o fplanned and actual investment spending by several more CARs over several more years, and would require an effort to track spending on a project-by project basis, versus a category-by-category basis. Nevertheless, the limited evidence suggests that for some CARs, there may be a significant gap between their PATs and their actual investment spending. Sources of CARs' FinancialResources 4.23 As the frontline environmental management institutions inColombia, CARSgenerate anduse the majority o f SINA's financial resources. Nationwide, during 1995-2002,71 percent o f total SINA funding for operations and 86 percent o f total SINA funding for investment were allocated to CARS. Fully 78 63 percent o f the funding for operations and 86 percent o f the funding for investment i s generated by CARs based on the mandates established by Law 99 o f 1993 (G6mez-Torres 2003). Distribution of Financial Resources among CARS,2003 4.24 Table 4.5 displays the financial resourcesavailable to CARS in2003. Separate entries indicate the funds available from national contributions and self-generated revenues, including debt. Separate entries also indicate the resources used for CAR operations and for investments. Ninety-two percent o f total resources were self-generated and the remaining 8 percent were derived from national contributions. Although the data in the table do not identify the trend, it is important to note that national contributions declined significantly inrecent years. The 8 percent figure in2003 represents a reduction o f slightly more than50percent compared to 1995-2002 (Blackman andothers 2004b). 4.25 An analysis o f the financial resources available to CARs in2003 also shows that the distribution o f funds across CARSis highly unequal. Total revenues o f CARs vary by approximately two orders o f magnitude, from a low o f C$2.7 billion (CSB) to a higho f C$135.7 billion (CVC). Two-thirds o f the total resources for all 33 o f Colombia's CARs accrue to just seven CARs (inrank order): CVC, CAR, CDMB, Corantioquia, Corpoguajira, Cornare, and CRC. As expected, the variation in self-generated (as opposed to total) revenues is even larger: self-generated revenues in CVC are a full three orders o f magnitude greater than those in Corpomojana. Even adjusting for population, rather wide differences persist among CARs. CAR spending ranges from a low o f C$3,040 per person (Corpocesar) to a higho f C$84,660 per person (Corpoguavio). 4.26 It appears that, on average, about one-quarter of CAR revenues are devoted to operations andthe remaining three-fourths to investments. However, these proportions also vary widely across the 33 CARs. Despite the requirements o f Law 617, which established that a maximum o f 30 percent o f the total funds can be used for salaries and administration, many CARS' operational expenses far exceed 30 percent, especially CARs with relatively modest levels o f self-generated funds and, correspondingly, small budgets. For instance, operations account for as much as 73.3 percent o f the total 2003 budget in a low- income CAR such as Codechoco, and as little as 11.1 percent in a relatively high-income CAR such as Corantioquia. For the funds providedby national contributions, the situation i s quite different than for the total funds: an average o f four-fifths o f national contributions support operations, and only one-fifth are devoted to capital investments. Only eight CARs report debt-related revenue, which amounted to about 2 percent o f total spending across all 33 CARS in2003. Sourcesof Selfgenerated Revenues by CARs 4.27 Self-generated CAR revenues consist o f 12 different categories o f taxes, fees, and other types o f revenuethat are mandated by Law 99. For example, this Law stipulates that 15 to 26 percent o fmunicipal property taxes are to be used to fund CARs' environmental management activities. Law 99 also requires that electricity generators must pay a gross revenues tax (transferencia) to CARs based on their power sales." Other sources o f revenue mentioned in Law 99 include monies from the National Royalty Fund, fines, a percentage o f damages awarded by courts in accionespopulares, a percentage o f fines imposed by territorial authorities for violations o f environmental laws, appropriations from the national budgets, fees, licenses, permits, authorizations, andconcessions. ''Accordingtothe h4AVDT(2006:7) "electricity sector transfers are nottaxes or charges." 64 - 0 0 0 0 - 0 0 0 0 - o o o o o I I o o o o o o o w m o o o o m w w 2 N II 0- * - s? m 2 % 0,a! - - M 4.28 The largest source o f self-generated revenues is capital. However, 60 percent o f those revenues accrue to a single CAR, the CVC. The next largest recipients are the CRC and Corantioquia, with 9.4 and 8.7 percent, respectively. Five CARs report negligible or no revenues from capital. Following revenues generated from capital, property taxes represent the largest source category. These are somewhat more evenly distributed than capital revenues, although even here a single entity, CAR (Bogoth), accounts for 42.1 percent o f total property tax revenues. Other important sources o f self-generated revenues are contributions, electricity taxes, and revenues from the sale o f goods and services. Water fees are a relatively small source o f revenues, although as in the case o f property taxes, a very large proportion o f total revenues are accounted for by CAR (Bogoth), inthis case 76.9 percent. Other small revenue sources include redistribution fees, contractor revenues, penalties, forest fees, andlicensing fees. Changes in Financial Resources, 2002-03 4.29 An additional perspective on CARS' finances may be gleanedby examining year-to-year changes inrevenues. Such aperspective enables one to gauge a number ofissues, for example, whether the growth inself-generated andor nationalcontributions is more focused on"rich" or "poor" CARs. By considering the changes over the most recent two-year period (2002-03) total CAR spending for 2003 rose by 14.5 percent over 2002 levels. However, the major revenue components displayed quite different patterns. For example, national contributions declined by 1.3 percent while self-generated revenues rose by 16percent. 4.30 Total spending on operations declined in 2003 by 8.3 percent while investment spending increased by 26.8 percent. National contributions for operations increased by a negligible amount, while national contributions for investments declined by 8.4 percent. The opposite pattern applies to self- generated revenues, which declined by 10.9 percent for operations while increasing 27.8 percent for investments. Self-generated funds from debt declined by 13.7 percent. 4.31 What are the possible causes o f these year-to-year budget changes? O f particular interest is whether the CARSwith larger budgets are growing more rapidly compared to the ones with smaller budgets. The findings on year-to-year changes during 2002-03 reflect some reallocation o f revenues for both investment and operations. In general, one can interpret these results as demonstrating a more activist reallocation o f funds. While there is a small "Robin Hood" effect involving the reallocation o f investment funds from CARS with high spending levels the previous year to those with.lower spending levels, this does not extend to national contributions for operations." Here it can be argued that richer CARs (richer relative to expenditures per CAR inhabitant and richer relative to expenditure per hectare) fared better in2003 than in2002. Adequacy of Humanand Technical Resources Human Resources 4.32 Environmental management capacity varies markedly across CARs. Shortages o f human resources are partly to blame. Several studies on the institutions found a general "scarcity o f highly- qualified humanresources" in CARs with "poor governance" (Booz Allen Hamilton 1997) and a direct relationship between overall efficiency o f CARs andtheir staffs levels o f professionalism (Vargas 2003). A key issue identified concerns about the staffing patterns in CARs, including the use o f contractors. ~~ " According to the MAVDT (2006:7), the "increases inthe investmentbudgetsof the Corporationsdo not follow a distribution. They originate from the circumstances of their own available resources given, as has been stated, their potential to collect resources. On this basis, the increases correspond to resource management and to the EnvironmentalCompensationFund." 66 Filling staff needs with contractors as opposed to permanent staff is common, as is highturnover among staff (and contractors), and what is generally described as favoritism inhiringboth staff and contractors. The inadequacy o f technical qualifications o f staff and contractors is also an issue o f concern (Blackman andothers 2004b). 4.33 The average staff size across all CARS was 112.6 in 2002. Not surprisingly, there are large differences in staff size across the CARS. Some CARs operated with quite small staffs in 2002: 26 in CRA; 27 inCorpoguavio; and 31each inCardique, Coralina, andCorpoboyaca. Others have much larger staffs: 817 in C A R 331 in Corantioquia; and 262 in CRC. The number o f contractors also varied considerably across the various CARs in 2002. While the average CAR engaged 66.9 contractors, some had as few as 7 (Corpomojana, Corponor). At the high end, the Corporation for the Defense o f the Bucaramanga Plateau (Corporacidn Autdnoma egional de Defensa de la Meseta de Bucaramanga, CDMB) had a total o f 301 contractors in 2002. On average, contractors comprise 37.3 percent o f total staff, rangingfrom a low 2.7 percent (CAR) to a high 83.3 percent (CRA). On the ratio o f inhabitants in each CAR to the number o f employees andcontractors, the extremes across CARS are slightlyhigher than the extremes in total employees. In the case of contractors, the variation on a per capita basis is many times greater than the variation intotal employees. 4.34 Education levels also seem to vary considerably across CARs, with some employing a high proportion o f college-educated people, and others relying disproportionately on those with only a high- school education. An average o f 60.7 percent o f the CAR staff members and 63.5 percent o f contractors completed 4 years o f college (or more) in 2002. Six o f the CARs report that 100 percent o f their staffs held at least a college degree, while 6 others reported that less than 50 percent o f their staffs had that status. Inthe case o f contractors, 13 CARs reportedthat 100percent held at least a college degree, while 9 others reportedthat less than 50 percent hadthat status. 4.35 A first order question is how the numbers of staff and contractors vary with the operating and investment budgets available to the CARs. Since a highproportion o f the total budgets are paid out inthe form o f staffing costs, it would be surprising if there was not a clear connection between staff size and both operating and investment budgets. For contractors, the situation is less clear, since contractors often carry out daily tasks that typically should be assigned to staff, such as making periodic inspections o f permitted facilities to monitor compliance or those focused primarilyon investment projects. 4.36 To understand differences in employment and contractor levels across CARs, it may be argued that causality runs from budgets to staff (and contractor) size when holding constant GDP and other income anddemographic-type variables. Inthe case o fpermanent employees, operational spending enters the equation with a positive and highly significant coefficient. This indicates that the number of employees is highly dependent on the size o f CARs' operational budgets. However, the coefficient on investment spending i s not statistically different from zero, suggesting that such spending is not a key factor in determining employment across CARs. Also o f interest is a strong likelihood that older, more established CARs have relatively higher stafing levels. Overall, a highpercentage o fthe variation in staff size is largely explainedby the operatingbudget. 4.37 According to analysis by Blackmanandothers (2004b) for contractors, neither the operations nor the investment budgets are statistically significant, although CARS with smaller operating budgets may tend to hire more contractors while CARS with large investment budgets may tend to hire fewer contractors. 67 Technical Resources 4.38 Technical weaknesses in the CARs have been cited as one o f the leading problems that inhibit environmental investment projects (Gonzblez, Barona, and Galino Caballero 2002). It is fair to say, however, that the term "technical resources" as applied to the operations o f CARS is not a very precise one. Of course, technical capacity shortages are not surprising given the highly unequal distribution o f financial resources across CARS, and the technical and administrative capacity varies markedly across CARs. Some CARs are excellent; others are minimally functional. One analysis o f CARs' efficiency would be to compare the number o f computers and computers per employee available in the CARS in 2002. While the average is about 104 computers per CAR, the variation is considerable. On the highend, CAR reports a total of 358 computers. On the low end, Carsucre reports a total o f 16 computers, roughly 5 percent the number in CAR. Computers per employee also vary considerably. While the average is 0.9 , computers per employee, on the high end Corpocaldas reports 3.33 computers per employee while Corpoguavio reports 2.96 and CRA reports 2.62. On the low end, CVS reports 0.32 computers per employee and Carsucre reports 0.39 per employee, a full order o f magnitude lower than Corpocaldas. Even though some CARs may provide computers for contractors or other relevant groups, it is nonetheless difficult to explain why the number o f computers in some CARs exceeds the number o f employees by such a wide margin. It is likely that the overall availability and use o f computers in CARs are closely related to the social conditions inthejurisdiction (Blackman and others 2004b). SanitationInfrastructure 4.39 The original mission o f CARS was to promote integrated regional development by, among other things, building sanitation infrastructure including wastewater treatment, drinking water, and irrigation facilities. Although Law 99 redefines CARs as regional environmental regulatory authorities and assigns primary responsibility for sanitation infrastructure to municipalities, it also mandates that CARs retain certain responsibilities for developing infrastructure, a dictate that clearly has the potential to create conflicts o f interest. In particular, in cases where CARs finance, plan, own, andor operate sanitation infrastructure, their incentives to strictly enforce environmental regulations governing this infrastructure are compromised. 4.40 MAVDT data on CARs' investments insanitation infrastructure indicate that CARS collectively devoted 30 percent o f all money spent on investment to wastewater treatment plants, a higher percentage thaninany o f the other categories (or metacategories) o f any other investment. Superficially, this statistic suggests that sanitation infrastructure i s a major focus o f CAR investment. However, further examination o f the CARS-level data indicates that this investment comprised a relatively small number o f very expensive treatment plants. In2001, all 33 CARs funded 11plants, each o f which cost C$9,078,200,454. 4.41 Several political, economic, and legal factors are driving CARS' continued investments in sanitation infrastructure. Perhaps most important, the government has explicitly mandated such investments. The 2002-06 National Development Plan directs CARS to help finance sanitation infrastructure using their self-generated revenue. According to the president o f ASOCAR, the national association o f regional environmental authorities, CARs oppose this provision o f the National Development Plan on the grounds that it creates conflicts o f interest. A closely relatedfactor is that, given the sources o frevenues assigned to CARs by Law 99, some CARs have significant fiscal resources. Thus, inthe view of some policy makers, given the current fiscal policy, CARSare the logical institutions to finance municipal sanitation infrastructure. Presumably, this view informed the provision o f the current NationalDevelopment Plan citedabove (Blackman and others 2004b). 4.42 Local political considerations evidently provide significant incentives for CARs to develop sanitation infrastructure. Large municipalities typically provide the bulk o f CARs' self-generated 68 revenues through property taxes and also wield considerable influence on CARs' decision making. It is felt that CARs focus on municipal sanitation infrastructure as a means o f funneling investment funds to these large municipalities (Blackman andothers 2004b). 4.43 According to Blackman and others (2004b), to the extent that CARs' infrastructure investments contribute to conflicts o f interest, a number o f strategies have beenproposed to mitigate them. One option i s to restrict CARs' role in developing sanitation infrastructure to planning and financing, that is, to prohibit CARs from owning or operating such infrastructure. Presumably, given this limited role, CARs' incentives for strict enforcement o f environmental regulations would not be compromised, or at least not to the degree they would be ifCARs played a more important role. This strategy is problematic, however. Although most CARs prefer to restrict their roles to planning andfinancing wastewater treatment plants, a number o f practical considerations tend to push them into owning and operating them. Specifically, in many cases, CARs finance and/or build such plants with the intention o f turning over responsibility for the plants to municipalities. However, municipalities are reluctant to assume this responsibility because the plants are not profitable-user fees are not sufficient to cover expenses and/or the plants are not adequate to meet environmental guidelines and, therefore, leave the owner liable for fines and retributive fees. One example is o f wastewater treatment plants on the Bogotb River built by CAR under a loan financed by the Inter-American Development Bank.Municipalities have refused to assume ownership o f these plants. One potential solution to the problem is for CARs to require municipalities to demonstrate a clear commitment to ownership before undertaking any infrastructure investments. Corantioquia, for example, requires municipalities to provide 50 percent cofinancingbefore financing infrastructure. 4.44 A second option to mitigate potential conflicts o f interest inherent indeveloping infrastructure is to simply prohibit CARs from playing any role in infrastructure development. Given the fiscal realities described above, this does not seem a particularly realistic strategy. Were this option to be pursued, CARs could be stripped o f responsibility for infrastructure development and o f a portion o f the property tax revenue now usedfor this purpose (Blackman andothers 2004b). 4.45 A thirdoption is for CARs to create separate internal divisions for buildinginfrastructure and for regulating it. However, many CARs already have separate divisions for investment and regulatory oversight, and as long as conflicts o f interest exist, this institutional structure may not be very effective at mitigatingthem (Blackman and others 2004b). RelationshipsbetweenCARs and other SINA Entities National-Regional Coordination 4.46 The decentralized design of Law 99 creates tension between the MAVDT and CARs, since the law gave CARs a great deal o f administrative and fiscal autonomy. It also gave the Ministry o f Environment the role o f leading SINA, overseeing and coordinating the activities o f CARs. However, evidence suggests that national-regional coordination has been less than optimal. An evaluation o f SINA presents what may be the most frank critical assessmento f this relationship: Currently, each component o f the system conceived in Law 99 o f 1993 i s working in an independent and divergent manner-each executes its own Action Plan based on its subjective interpretation o f the National Environmental Plan, adapting it according to its own regional needs...The problem arises principally from the absence o f leadership on the part o f the central axis o f the system, in particular, a failure to coordinate actions, assign work, process information, and evaluate results in accordance with national intentions ... [this failure] results in duplication o f efforts and an increase in operational costs (4)...with the lack o f a system leader, [each CAR] interprets its function as an 69 individual entity, andnot ...as parto f the system (5). ..Management o f relations between MMA and CARs, territorial entities, research institutes and urban environmental authorities are dispersed. This dispersion generates, on the one hand, inconsistency in decisions on environmental matters, and, on the other hand, ambiguous and contradictory administrative action, and what's worse, the absence o f a unique sectoral policy (Booz Allen Hamilton 1997). 4.47 In general, the Ministry of the Environment is not able to exert sufficient control over the planning and functioning of CARs. Insome cases, the general directors of certain CARs are extremely powerful, perhaps too powerful relative to the other players in the environmental management system. Many CARs have strong links to Congress, which inturn can exert influence on the MAVDT. 4.48 Several fundamental arguments can be made for continued decentralized environmental administration-presumably the same arguments that motivated the decentralization embodied in the 1991 ConstitutionandinLaw 99. They are: (a) autonomy enables CARSto operate independently o f local political pressures at the municipality and department levels; (b) autonomy insulates CARS from bad governance at the national level; (c) decentralization encouragespublic participation and social control at the regional level; and(d) given Colombia's size and diversity, central administration o f the environment is inefficient or impractical. Perhaps decentralization i s the principal reason that Colombia's environmental regulatory system functions as well as it does. Prior to decentralization, most o f the country lacked environmental regulation altogether. This remains the situation inLatinAmerica countries where environmentalregulation i s more centralized (Blackman andothers 2004b). 4.49 It is perceived that the ministry has insufficient information about the investment, policy implementation, and regulatory enforcement activities o f CARs. The performance indicators CARs currently use typically reflect regulatory processes rather than impacts. For example, CARS often report on the amounts o f money spent rather than on how these investments affect environmental quality. The MAVDT's information about environmental quality at the regional level is also insufficient. Effective coordination is not possible without such basic information (Blackman andothers 2004b). 4.50 To overcome the coordination problems among CARs and national and regional agencies, Presidential Decree 1200 o f 2004 establishes six sustainable development objectives and 15 impact indicators aimed at promoting a better linkage between national andregional priorities and strengthening the focus on results andimpacts linkedto the environment, andto evaluate environmental management by CARS.^^ These are to be addressed at the regional level through 10-year Regional Environmental Management Plans (Planes de Gestidn Ambiental Regional, PGARs) and Three-year Action Plans (Planes de Accidn Trienal, PATs). The PGARs outline the principal social, economic, cultural, physical, and other challenges facing the region, and CARs' strategy for managing environmental resources, investment priorities, financing requirements, potential sources o f financing, andtools for monitoringand evaluating the program. The PATs, prepared in consultation with CARs, municipalities, civil society representatives, and other stakeholders, detail the corporation's short-term strategy for achieving the goals set forth inthe PGAR. Decree 1200 requires the MAVDT to review progress toward achieving the goals set forth inthe PATs andPGARs. The directors o f CARSthat do not meet the goals set forth intheir own PATsare at risk ofbeingremovedby the CAR'SBoard of Directors. By June 2005, neither the MAVDT, IDEAM, nor CARShad started gathering data to establish a monitoring baseline with respect to the six sustainable development objectives. Since the MAVDT has not started implementation o f this Decree, it i s too early to evaluate its effectiveness. 53 These indicators include deforestation rates and forest conservation efforts, development of green markets, rationalization and optimization of consumption of renewable natural resources, reduction in health impacts associatedwith environmentalfactors, andreductioninvulnerability risk associatedwithnaturaldisasters. 70 CARS,AAUs,and Municipalities 4.51 Significant financial and jurisdictional battles are taking place between CARs and AAUs, and betweenCARs and municipalities, all institutions that needto-and by law are supposedto-cooperate to facilitate environmental management. Further, the precise roles andjurisdictions o f the different agencies, particularly the AAUs and CARS, are confused and sometimes in conflict. Some regulated firms report being inspected by multiple authorities, sometimes based on different criteria. Several court cases are pending, although interim cooperative agreements have been reached pending resolution o f these cases (Blackman andothers 2004b). 4.52 According to Blackman and others (2004b), actual and potential conflicts o f jurisdiction among CARs, municipalities, and the AAUs exist, such as cases where multiple permits are mandated by different agencies, sometimes with conflicting requirements. Financial conflicts among CARs, municipalities, and AAUs are particularly contentious. Regarding relationships between CARs and municipalities, in principal, CARS receive at least 15 percent o f the revenues from property taxes collected in their jurisdictions. Administratively, these revenues are collected by the municipalities. However, many CARs claim that they do not receive their full allocations because o f artificially low valuations andbecause the mayors often retain some o f the funds for investments intheir municipalities. Two principal mechanisms are cited by which the mayors retain funds: (a) the use o f intricate accounting procedures and (b) the use o f in-kind,rather than cash, payments to CARS. Inthe latter case, the mayors sometimes argue that certain investment projects undertaken within their jurisdiction should have been financed by CARS. Therefore, the municipalities (unilaterally) net out the costs o f these projects in allocating revenues to CARS. For a variety o f reasons, the CARs general directors tend not to fight these actions. How do the mayors exert such influence? They are members o f the boards of directors o f the CARs, and although they are supposedto represent all the mayors inthe CARS, they often focus on their own interests; and the mayors tend to form coalitions with other board members (Blackman and others 2004b). 4.53 Financial conflicts between the CARs and the AAUs can be equally contentious. A number o f CARs, including Cardique and CRA, are battling with the AAUs over the disposition o f the property taxes collected within the jurisdiction of the AAUs in their areas (Cartagena and Barranquilla, respectively). In the case o f CRA, for instance, interviews carried out by RFF revealed that a recent judicial decision awarded the full 15 percent o f the property taxes collected in Barranquilla to the AAU (Environmental Administration Department o f Barranquilla, BAMA).While many observers believe this case will not standup on appeal, final resolution may take many years. Inthe meantime, the parties have reached an agreement to split the revenues equally (Blackman andothers 2004b). ConclusionsandRecommendations 4.54 The main conclusion are these: (a) detailed, albeit limited, data suggest that CARs do not prioritize environmental risks adequately; e)CARS' overall performance varies significantly andappears to be correlated with the age o f the CAR, and with levels o f poverty and geographic jurisdictions; (c) although the distribution o f financial resources across the CARs i s highly unequal, opportunities might exist to mitigate inequities by encouraging CARS to take advantage o f unexploited prospects for revenue generation; (d) human and technical resources vary markedly across CARs, and human resource difficulties are exacerbated by conflicting national level polices; (e) the participation o f CARs in financing, owning, andoperating sanitation infrastructure weakens their incentives to stringentlyregulate that infrastructure; (f) coordination between the MAVDT and CARS i s suboptimal, partly as a result o f tensions inherent inthe design o f SINA; and(g) jurisdictional conflicts exist among CARs andAAUs. 71 4.55 To meet the institutional challenges discussed, Blackman and others (2004b) propose a series o f recommendations (Table 4.6): (1) ImprovePriority Setting by Mandating CARs Undertake Analysis of Cost of Environmental Degradation and Comparative Risk Assessments 4.56 To improve CAR priority setting (in addition to the enforcement o f Decree 1200 o f 2004), the MAVDT might consider requesting that each CAR periodically assess the relative importance of various risks to human health and the environment in the CAR'S territory. The MAVDT can also require that CARs use this comparative risk assessment to guide its allocation of financial, human, and technical resources. The specific steps the MAVDT can take to make these requirements feasible include improving data collection and management at the CAR level; developing a standard methodology for comparative risk assessments that is practical, given the current capacity for data collection and analysis among CARS; providing technical assistance andtraining incomparative risk assessmentby, among other things, developing user-friendly training manuals andholding workshops; developing means o f certifying thirdparties to assist CARs incarrying out riskassessments; anddeveloping regulations requiring CARs to linkthe results o f comparative risk assessments to the resource allocations included intheir Three-year Action Plans. (2) Strengthen the Participation of Representativesof Civil Society on CARs Boards of Directors 4.57 To balance the influence o f private sector interests, the government might consider strengthening the participation o f the members o f CAR boards o f directors who represent civil society, the MAVDT, departments, and the President o f the Republic. CARs and the MAVDT can strengthen civil society participation by funding projects and programs to build NGOs' capacity at the local level, creating networks and associations among NGOs and between Colombian and international civil society, and involving civil society in CAR activities. Measures that can help to strengthen civil society include continuing to promote environmental education and ensuring free availability o f environmental data. Steps can also be taken to professionalize the representatives of public sector institutions on the boards o f directors, includingrepresentative o f the MAVDT, the departments, andthe Office o fthe President. (3) Require Top CARs Managers and Members of Boards of Directors to meet Minimum Professional Criteria and Financial Disclosure Requirements 4.58 A number of steps can be taken to professionalize and enhance transparency of CARs management and oversight. For example, in accordance with recent reforms o f the election process for general directors (Decree 3345 o f 2003), the government might consider establishing national minimum professional criteria for other top positions in CARs. Individual.CARSwould be allowed to establish stricter criteria, but not weaker ones. The principal aim o f this effort would be to assure that key CAR staff and most members of boards o f directors possess the technical qualifications and/or professional experience neededto performtheir jobs effectively. The professional criteria should take into account the fact that regional diversity implies that different qualifications may be appropriate in different CARS. Independent third parties such as universities and professional associations should be responsible for assessingthe extent to which candidates meet these criteria. Professional experience and education could substitute for each other in meeting the criteria. Even if the criteria are not legally binding, a voluntary system o f evaluation and public disclosure might have a positive impact, and might serve as a first step toward a more comprehensive system. 4.59 Inaddition, the government might consider efforts to establish financial disclosure requirements for CAR senior management-including general directors and most public sector board members-and 72 regulations governing what types o f conflicts o f interest disqualify candidates from service. Financial disclosures would needto be vetted by a credible, independent, qualified party. (4) Hold an Annual Public Meeting of CARSand MAVDTRepresentatives 4.60 An annual meeting o f MAVDT and CARs general directors that is fully open to the public could serve a number o f purposes including: improving CAR-MAVDT coordination, disseminating best practices among CARs inorder to raise average levels o f regulatory capacity, andincreasing transparency and informationsharing. In addition, such an annual meeting would enable CARSto publicly report on their activities, thereby creating incentives for improved institutionalperformance. (5) Improve National-Regional Coordination 4.6 1 MAVDT could aggressively explore new strategies for improving coordination between the MAVDT andCARs. A number o f more specific coordination mechanisms are available that fall into two categories: "carrots"-that is, rewards for cooperative behavior; and "sticks"-sanctions for noncooperative behavior. Carrots are likely to be more effective in the case o f resource-poor CARS and sticks are more likely to be effective in the case o f resource-rich CARs. Among the mechanisms that involve sticks is strengthening the capacity and authority o f MAVDT to supervise the performance o f SINA organizations. 4.62 A second "stick" is to enhance MAVDT authority over CARs management and spending decisions. For example, standardsandprocesses mightbe developed that allow the MAVDT to undertake a periodic formal evaluation o f CARs general directors and to remove them in the case of blatant violations o f MAVDT policy directives. The MAVDT might also be endowed with the authority to approve certain CAR budget and/or investment decisions on the basis o f a set o f clear standards. To minimize the potential for bureaucratic sluggishness, the MAVDT would be given a limited amount o f time to approve or rejectbudgets. Inaddition, a formal dispute resolution mechanismcouldbe established to facilitate the overall process. 4.63 Possible coordination carrots include enhancing the MAVDT's ability to cofinance investment projects at the regional level. In countries with a decentralized environmental structure, cofinancing is often the most important tool national authorities have to ensure national-regional coordination. One disadvantage o f this approach i s that it would be less effective inCARSthat have relatively large amounts o f self-generated funds. 4.64 National environmental funds are likely the most efficient and transparent means o f enhancing cofinancing. The MAVDT could rely on existing mechanisms-the National Royalty Fund, the Environmental Compensation Fund, the National Environmental Fund, and the National Fund for Environmental Action. However, as discussed, each o f these funds has significant structural characteristics that render them less than ideal for the purpose at hand: each fund alone has resources that mightnot be sufficient to have the desired impact, several ofthe funds have goals other than coordinating national-regional environmental management and/or that entail legal restrictions that would leave the MAVDT with limiteddiscretion in deciding how and where to disburse funds, some o f the funds have been plagued by poor management, and some of the funds have limited resources outside o f national appropriations. Given these constraints, the government might consider efforts to consolidate and restructure the existing funds. 4.65 Ideally, the fund used to improve national-regional coordination-whether a modification o f an existing mechanism or a new one-would have the following features: CARs would submit proposals for cofinancing to the MAVDT, and the MAVDT would evaluate and select proposals using clear and 73 transparent criteria. In establishing these criteria, the MAVDT's broad aim would be to maximize net benefits (benefits to human health and the environment net o f total costs) but also to further national- regional coordination and to reduce disparities across CARS in both regulatory capacity and access to environmental services. Thus, the proposal selection criteria would include such.factors as: the degree to which the project aligns with national and regional environmental plans, the capacity o f the particular CAR to implement the project, the level of environmental infrastructure inthe particular CAR relative to other CARS, the need for capacity building in the particular CAR relative to other CARs, and the magnitude o fthe potential net benefits to humanhealth andthe environment from the proposed projects. 4.66 Conventional mechanisms would be usedto ensure that project funds are well spent. To ensure that CARs are fully committed to the project, they would be requiredto supply a significant percentage o f capital from their own coffers. CARs would also be required to collect clear, transparent, baseline data; establish performance milestones based on specific monitorable criteria; and provide periodic progress reports on the extent to which these milestones have been met. Clear failure to meet milestones would disqualify CARs from future cofinancing. These mechanisms would help to bolster the MAVDT's ability to monitor CAR activities. 4.67 Finally, the annual meeting constitutes a mechanism for enhancing CAR-MAVDT coordination that involves both carrots andsticks. (6) Develop Guidelines to Minimize Conflicts of Interest Arisingfiom CARs'Involvement in Developing Sanitation Infrastructure 4.68 A number o f measures can be takento minimize potential conflicts o f interest arising from CAR involvement in developing sanitation infrastructure. The most effective means o f achieving this end would be to simply prohibit CARs from having any involvement in developing sanitation infrastructure. Although not unreasonable as a long-term policy goal, in the medium term, given the paucity o f other sources o f funds for sanitation infrastructure and consequent national pressures to use CARs self- generated funds for this purpose, this drastic measure may not be politically feasible. 4.69 A more practical approach inthe short term might be to prohibit CARs from operating or owning sanitation infrastructure, and strictly limiting their role to providing cofinancing. Although it would not completely eliminate conflicts o f interest, this prohibitionwould likely dampen them. Similarly, conflicts o f interest could be dampened by requiring CARs to create independent administrative divisions to finance sanitationinfrastructure. (7) TakeAction at the National Level to ResolveJurisdictional and Financial Disputes between AAUs and CARs 4.70 Continuing jurisdictional and financial disputes between CARs andAAUs-including numerous court cases-have needlessly drained scarce resources, precluded cooperation between the two institutions, and sowed uncertainty, confusion, and mistrust in the regulated community. National-level authorities, including Congress and, if necessary, the legislature, might consider clarifying lines o f authority and finance relationships between AAUs and CARS, and might develop workable and efficient dispute resolutionmechanisms. (8) Eliminate CARs that ChronicallyPeflorm Poorly 4.71 One option for improving the functioning o f the regional environmental management systems in Colombia is to eliminate CARS that chronically perform poorly by consolidating them with contiguous, well-functioning CARs. Until information management systems are improved, however, evaluating the 74 performance o f individual CARs will remain a difficult, subjective, and extremely contentious exercise. Once indicators and management systems are in place, rules could be established mandating that CARS meet minimumperformance standards. 4.72 The process o f developing these standards could be closely tied to efforts (that are presumably underway) to require CARs to set specific quantifiable goals in their Three-year Action Plans, and to systematically monitor their progress toward achieving these goals. Ideally, this performance evaluation system would measure CARS' direct impacts on environmental quality, such as reduction in waterborne diseases or in concentrations o f particulate matter less than 2.5 microns in size (PM2.5) for outdoor or indoor environment^^^. In addition, the new system could take stock o f "process-related" proxies for CARs' environmental impacts that have to do with the extent to which they carry out functions associated with environmental protection, such as completing planningactivities, collecting environmental quality data, andcarrying out monitoring actions. 4.73 CARs that chronically fail to meet minimumperformance standards, and that cannot show good cause for this failure, would be subject to elimination by consolidation. Procedures to carry out these activities would need to be established, possibly including some form o f legislative approval. Even if never carried out, this threat couldbe a strong incentive to improve performance. Table 4.6: Recommendations Priority short (S), medium (w, Recommendation and long term (L) Participating institutions 1. Improvepriority settingby mandatingthat CARs undertakeanalysis of cost ofenvironmental S Congress, MAVDT, DNP degradationandcomparative risk assessments. 2. Strengthen the participationofrepresentativesofcivil societyon CARs' boardsof directors. M Congress, MAVDT, DNP 3. Requiretop CARSmanagersandmembersofboards ofdirectorsto meetminimumprofessionalcriteria M Funci6nNblica, MAVDT andfinancial disclosure requirements. 4. Holdan annualpublicmeetingof CARs and MAVDTrepresentatives. M MAVDT, CARS 5. Improvenational-regional coordination. S MAVDT, DNP, MHCP 6. Developguidelines to minimize conflicts ofinterest arisingfrom CARs' involvementindeveloping S Congress, MAVDT, DNP sanitationinfrastructure. 7. Take actionat the nationallevel to resolve jurisdictional andfinancial disputes betweenAAUs S Congress, MAVDT, DNP andCARs. 8. EliminateCARs that chronicallyperformpoorly. M Congress, MAVDT, DNP 54 According to the MAVDT (2006:7) "general goals cannot be deemed(inthe sense that they are for all CARs) as environmentalgoals (air pollution) that are not a generalized problem, as inthis case it is suggestedto measure the performance inachievingPM2.5 reductionsthat at the global levelstill lack normsinindustrializadcountires." 75 4.74 A performance evaluation system involvingsuch severe sanctions would create strong incentives for poorly performingCARSto block improvements ininformation management systems. To preventthis, the two policy initiatives could be staggered-the evaluation system could be initiated after information systems have beenupgraded. Thus, this systemwould appear to be more practical inthe medium or long term than inthe short term. 76 CHAPTER 5 SETTING ENVIRONMENTALPRIORITIES: TOP DOWNAND BOTTOM UP As assessment of thesocial and economic costs of environmental damage in Colombiashows that the highest costs of environmental degradation (representing approximately 3.7percent of gross domestic product) are associated with insuflent water supply, sanitation, and hygiene, and ambient and indoor air pollution, followed by natural disasters and land degradation. Ambient and indoor airpollution accountfor approximately 7,000premature deaths annually, while 1,450 to 1,820 children die each year porn diarrheal illness related to insuflcient water, sanitation, and hygiene. A survey of Colombian societalperceptions of environmentalpriorities showed that these environmentalproblems that carry the highest costs of environmental degradation are also of great concern to the Colombian population. It also indicated that these environmental problems aflect thepoor most directly, as low-incomegroups (74percent) identijled air pollution as the most serious environmental concernfor the country, and environmental health (70percent) as the toppriority for their household. Introduction 5.1 This chapter provides estimates o f social andeconomic costs o f environmental damage inColombia based on the national estimates presented in Larsen (2004a), and describes results fi-om a survey administered in2004 to determine perceptions of different stakeholders on priority environmental concerns (CNC 2004)." Costs are presented for five environmental categories: (a) urban air pollution; (b) water, sanitation, and hygiene; (c) indoor air pollution; (d) agricultural landdegradation; and(e) natural disaster^.'^ Cost estimates were also undertaken inthe preparation of this report for insufficient household solid waste collection, and for vector-borne illnesses (malaria, dengue, leishmaniasis). While the cost o f these two categories is significant in some departments and localities, the cost estimates indicate that at the aggregate national level they are only a fi-action o fthe national cost o f the five categories above. They are therefore not presentedinthis chapter. 5.2 Chapters 11, 12, and 13 discuss degradation at the national level for water resources, wetlands, biodiversity, andprotected areas. Estimates o f the costs related to these environmental issues are very low compared to those associated with water, sanitation and hygiene, land degradation, and indoor and urban air pollution. 5.3 This chapter discussesthe anuual cost of environmental damage inColombia, presentsestimates o f the cost o f environmental degradation associated with the abovementioned environmental categories, "BjomLarsen,EmestoShnchez-Triana,andYewandeAweauthoredthischapter,whichdrawsheavilyfroma background document preparedby Larsen (2004a) for the MAVDT. 56 Cost o f deforestation and water pollution i s only partially and indirectly estimated due to data limitations. Some of the cost o f deforestation i s captured in the cost o f natural disasters (flooding, landslides) and agricultural land degradation insofar as deforestation contributes to natural disasters and soil erosion. Other costs of deforestation, such as impacts onwater resources and recreational value, are not estimated. The cost o f water pollution is captured only in terms o f waterborne illnesses (diarrheal illness). Other costs, such as potential impacts on health of heavy metals andchemicals andrecreational value, are not estimated. 77 presents the results o f a survey administered in 2004 to determine perceptions o f different stakeholders on priority environmentalconcerns, anddraws conclusions. AnnualCostofEnvironmentalDamage 5.4 The mean estimated annual costs o f environmental damage for five categories: (a) urban air pollution; (b) insufficient water, sanitation, and hygiene; (c) indoor air pollution; (d) agricultural land degradation; and (e) natural disasters, amounts to approximately 3.75 percent o f gross domestic product (GDP)57per year (Figure 5.1)? The highest-cost categories are insufficient water supply andoutdoor and indoor pollution, followedby natural disastersandagricultural landdegradation. (Larsen 2004a). Figure5.1: AnnualCost ofEnvironmentalDamage(%of GDP) I 1 0% 0.8% 0.6% 0.4% 0.2% 0.0% I Water SanitationHygiene Natural Disasters UrbanAlr Pollution Land Degradation IndoorAir Pollution Note: Cost of landdegradationis erosionandsalinityof cultivatedlandanddoesnot includepasturehngeland. Source: Larsen(2004a). Table 5.1: AnnualCostofEnvironmentalDamage-Low andHighEstimates Billion pesos per year Environmental Categories Low Mean estimate High Water, sanitation, hygiene 1,700 1,960 2,220 Natural disasters 1,330 1,750 2,175 Urbanair pollution 720 1,500 2,285 Agricultural soil degradation* 1,310 1,440 1,570 Indoor air pollution 230 415 600 Total annual cost 5,290 7,065 8,850 * Erosionandsalinityof cultivatedland(not includingpasturehangeland). Source: Larsen(2004). 5.5 A low andhighestimate o f annual cost is presented inTable 5.1. The largest range is associated with urbanair pollution. This is mainly becausetwo valuation techniques for estimating the social cost o f mortality have been applied. The large range for indoor air pollution is mainly because o f the uncertainty about the level exposure to indoor smoke from the use o f fuelwood, andthus a range has been applied for the level o fhealth risk. 57 The estimatedcostofroadaccidentsis anadditional 1.5 percent ofGDP (Larsen 2004). 58 Inaddition, the cost of roadaccidentswas estimated at C$2.8 billion pesosperyear (Larsen (2004). 78 Costs by Environmental Category 5.6 In urban areas, the cost of urban ambient air pollution is slightly higher than the cost of inadequate water, sanitation, and hygiene (Figure 5.2). In rural areas the cost of land degradation (not includingpasture) is estimated at more thantwice as highas the cost o f inadequate water, sanitation, and hygiene (Figure 5.3), while the cost o f indoor air pollution is almost as high as for water, sanitation and hygiene." Figure5.2: EstimatedAnnualUrbanCosts(billionpesos) I 2400 I UrbanAir Pollution Water SanitationHygiene 1600 1400 1200 1000 800 600 400 200 0 I Land Degradation Water SanitationHygiene IndoorAir Pollution 5.7 Physical damages, such as land degradation and damage to buildings and infrastructure from natural disasters, have the highest share o f total environmentaldamage cost. This is followedby an almost equal cost share for morbidity and mortality (Figure 5.5). The negative health impacts associated with environmental degradation in Colombia are higher than in other countries with similar income levels. Studies conducted in several lower-middle-income countries and Lebanon (an upper-middle-income country) in North Africa and the Middle East show that in most cases the monetary value o f increased morbidity andmortality remains below 2 percent of GDP, while these costs are about 2.8 percent o f GDP in Colombia (Figure 5.4). Of the physical costs, the categories with the highest cost shares are natural disasters and land degradation (Figure 5.6). The cost associated with water i s for expenditures on bottled water, householdwater purification, and boiling o f drinking water associated with perceived health risks o f water supply sources. '' Rural cost of inadequate water supply, sanitation, and hygiene i s based on rural-urban population share and rural-urban diarrhealincidence.No adjustmentsare made to landdegradationandindoor air pollution costs, as these are alreadyallruralcosts. 79 Figure 5.4: Costs of Environmental Degradation (Health and Quality of Life) 3.50% 3.00% 8 & 2.50% 2.00% CI s0 1.50% 1.OO% 0.50% I 0.00% Egypt Colombia Jordan Lebanon Algeria Syria Morrocco Tunisia I Source: Tunisia andLebanon: Sarraf, Larsen, and Owaygen (2004); Algeria: Ministke de I'Amknagement du Territoire et de I'Environnement (2002); Egypt: World Bank (2002); Morocco: World Bank (2003); Syria: Serraf, Bolt, and Larsen(2004); Jordan:METAP (2000). Figure 5.5: Costs by Category (billion pesos) 4000 3200 2400 1600 800 0 "Physical" Morbidity Mortality Figure 5.6: "Physical" Costs by Category (billion pesos) Natural Disasters Land Degradation Water 80 Figure5.7: NumberofDeathsby Category I UrbanAir Pollution Water SanitationHygiene IndoorAir Pollution NaturalDisasters I Figure5.8: DeathsamongChildren,byCategory II"I 1500 1250 I000 750 500 250 0 Water SanitationHygiene IndoorAir Pollution Figure5.9: AnnualCosts ofInsufficientWater, Sanitation,Hygiene(billion pesos) Health Impacts Avertiwe Expenditures 5.8 The estimated number o f annual deaths from urban air pollution i s several times higher than in the other categories (Figure 5.7). However, the situation is different for children. Insufficient water, sanitation, and hygiene represent the largest mortality risk for children, followed by indoor air pollution (Figure 5.8). Water, Sanitation,andHygiene 5.9 The mean estimated annual cost associated with insufficient water supply, sanitation, andhygiene ranges from C$1,700 billion to C$2,220 billion per year, with a mean o f C$1,960 billion. The cost o f health impacts represents an estimated 70 percent o f total mean cost, and avertive expenditures about 30 percent (Figure 5.9). Health impacts include both mortality and morbidity, and avertive expenditures 81 include bottled water consumption, household water filtering, and household boiling o f drinking water (Figure 5.10). This section discusses the linkages among health and water, sanitation and hygiene, the environmental health situation in Colombia, the methodologies used to estimate health impacts, and the socioeconomic valuation o f these health impacts. Figure 5.10: AnnualCostsby Category (billion pesos) 1200 1000 800 600 400 200 I 0 Diarrheal BottledWater DiarrhealChild HouseholdBoiling HouseholdWater HepA, Typhoid, Morbidity Consunption Mortality of Water hrification Paratyphoid DiarrhealIllness 5.10 Insufficient potable water supply, sanitation facilities and practices, and hygiene conditions are associated with various illnesses in both adults and children. Esrey and others (1991) provide a comprehensive review o f studies documenting this relationship for diseases such as schistosomiasis (bilharzia), intestinal worms, diarrhea, and others. From a review o f studies, Curtis (2002) reports a mean reduction o f 44 percent in cases o f severe diarrhea from good handwashing practices. While diarrheal illness is generally not as serious as some other waterborne illnesses, it is more common and affects a largernumber o fpeople. 5.1 1 Water, sanitation, andhygiene factors also influence child mortality. Esrey andothers (1991) find intheir review of studies that the medianreduction inchildmortality from improvedwater andsanitation was 55 percent. Shi (1999) provides econometric estimates o f the impact o f potable water and sewerage connection on child mortality using data for about 90 cities around the world. Literacy and education level is also found to be important for parental protection o f child health against environmental risk factors. Esrey and Habicht (1988) report from a study in Malaysia that maternal literacy reduces child mortality by about 50 percent inthe absence o f adequate sanitation, but only by 5 percent inthe presence o f good sanitation facilities. Literacy is also found to reduce child mortality by 40 percent ifpiped water is present, suggesting that literate mothers take better advantage o fwater availability for hygiene purposes to protect child health. 5.12 Findings from the Demographic and Health Surveys (DHS) seem to M e r confirm the role of literacy in child mortality reduction. Rutstein (2000) provides a multivariate regression analysis o f infant and child mortality indeveloping countries using DHS data from 56 countries for 1986-1998. The study finds a significant relationship between infant and child mortality rates and piped water supply, flush toilets, maternal education, access to electricity, medical services, oral rehydration therapy (ORT), vaccination, presence o f a dirt floor in household dwelling, fertility rates, and malnutrition. Similarly, Larsen (2003) provides a regression analysis o f child mortality using national data for 2000 from 84 developing countries representing 95 percent o f the total population in the developing world. A statistically significant relationship between child mortality and access to improved water supply, safe sanitation, andfemale literacy is confirmed. 82 BaselineHealth Data 5.13 Colombia has achieved substantialreductions inchildmortality anddiarrheal childmortality. Child mortality is now about one-third lower than inthe Latin America and the Caribbean region, and almost 50 percent lower than the average for lower-middle-income countries. Baseline health data for estimating the healthimpacts o f insufficient water supply, sanitation, andhygiene are presentedinTable 5.1. Datafrom the National Statistical Administration Department (Departamento Administrativo Nacional de Estadisticas, DANE) indicate that about 7.3 percent of child mortality is from diarrheal illness. The lower bound for diarrheal mortality (1,450 deaths) is based on 7.3 percent o f official death records, while the upper bound (1,820 deaths) is basedon 7.3 percent o ftotal estimatedchildmortality published by DANE:' 5.14 For diarrhealmorbidity, however, it is very difficult or practically impossible to identify all cases o f diarrhea. The main reason is that a substantial share o f cases is not treated or does not require treatment at health facilities, and is therefore never recorded. A secondreason is that cases treated by private doctors or clinics are most often not reported to public health authorities. Therefore, household surveys often provide the most reliable indicator o f total cases o f diarrheal illness. Most household surveys, however, contain only information on diarrheal illness inchildren. Moreover, the surveys only reflect diarrheal prevalence at the time o f the survey. Because there is often highvariation indiarrheal prevalence across seasons o f the year, extrapolation to an annual average will result in either an over- or underestimate o f total annual cases. Correcting this bias is often difficult without knowledge o f seasonalvariations. 5.15 The Colombia Demographic and Health Survey 2000 (DHS 2000) provides data on diarrheal prevalence inchildren under age five. It reports that diarrheal prevalence (preceding two weeks) was 13.9 percent. This rate was used to estimate annual cases per child under 5, and then total annual cases in all children under 5 (Table 5.2). The procedure applied is to multiply the two-week prevalence rate by 52/2.5 to arrive at an approximation o f the annual cases o f per child. The prevalence rate was not multipliedby Table5.2: BaselineData for EstimatingHealth Impacts ~~ Parameters Baseline Source Diarrheal mortality inchildren under age 5 ("Aof childmortality) 7*3% Basedon data from DANE Total annual diarrheal mortality inchildren underage 5 ...-...._. 1,450-1,820 ___l___.-""__l..- I-"-.-."-" Diarrheal two-week prevalence inchildren under age 5 13.9% DHS 2000 . , Estimatedannual diarrheal cases per child under age 5 2.9 Estimated from DHS 2000 Estimated annual diarrheal cases per person(>5 years) 0'4(M*57 Estimatedfroma combinationof I N S data andDHS2000 ................................... " ..................... ~ " ~ Hospitalization rate (% o fall diarrhea cases)-under age 5 o.75% Adjusted to Colombia based on evidence from Egypt Hospitalization rate (% o f all diarrhea cases)-under age 5 (Larsen 2004). No data OS% available for Colombia Percent o f diarrheal cases and hospitalizations attributable to water, sanitation, andhygiene 90% (2002b) DALYsper 100,000 cases ofdiarrhea inchildrenunder age 5 3040 DALYsper 100,000 cases ofdiarrhea inpeople>5 years 100-130 Estimated from WHO tables DALYspercase ofdiarrheal mortality inchildrenunder age 5 34 ''Official deathrecords representa significant understatemento f actual deaths inmost developing countries due to underreporting by households. DANEtherefore publishes estimated mortality inaddition to officialrecords. 83 26 two-week periods (that is, 52/2), but multiplied by 52/2.5 for the following reason: The average duration of diarrheal illness is assumed to be three to four days. This implies that the two-week prevalence captures a quarter o f the diarrheal prevalence in the week prior to and a quarter inthe week after the two-week prevalence period. 5.16 The DHS household survey does not (nor does any other household survey inColombia) provide information on diarrheal illness inthe population over 5 years o f age. However, the National Institute o f Health (INS) has a large database on cases o f diarrheal illness for several years reported by each department in Colombia based on reported information from health care facilities. While this database is not complete, it provides an indication of the annual incidence o f diarrhea per child relative to annual incidence for the rest o f the population.61An analysis o f the database suggests that diarrheal incidence in children under age 5 is up to seven times higher than the incidence in the population over age 5. It should be noted, however, that the databasecontains information on cases o f diarrhea treated at health facilities. In general, the percentage of cases of diarrhea that are treated at health facilities is higher among young children than among older children and adults. For instance, according to the DHS 2000, the percentage o f cases o f diarrhea among 4-year-old children is 28 percent lower than among children age 0 to 4. Thus the incidence ratio o f 7, as suggested from the INS database, is likely an overestimate. The annual cases of diarrhea per person among the population above age 5, presented inTable 5.2, are therefore estimated at 1/7" to (1/0.72)*1/7" o fthe annual cases per child under 5. 5.17 Table 5.2 also presents disability-adjusted life years (DALYs)~~ cases o f diarrheal illness, per which are used to estimate the number o f DALYs lost because o f insufficient water supply, sanitation, andhygiene. While the disability weight for diarrheal morbidity is similar for children andadults (0.1 19 for children under 5 and 0.086 for the rest o f the population), and the duration o f illness is assumed to be the same (three to four days), the DALYs per 100,000 cases o f diarrheal illness are much higher for adults. This is because DALY calculations involve age weighting that attaches a low weight to young children, and a higher weight to adults, which corresponds to physical and mental development stages.63 For diarrheal child mortality the number of DALYs lost is 34. This reflects an annual discount rate of 3 percent o f life years lost. Table 5.3: EstimatedAnnualImpactsonHealthDueto Insufficient Water, Sanitation,andHygiene Parameters Estimated annual cases Low High Cases o fdiarrheal illness Children (under age 5bincreased mortality 1,305 1,635 Children (under age 5)-increased morbidity 12.4million 12.4 million Population over age 5-increased morbidity 14.5 million 20.0 million Cases o f diarrheal hospitalization Children (under age 5) 90,000 95,000 Population over 5 years o fage 75,000 100,000 Total disability-adjusted life years (DALYs)-mortality andmorbidity 64,000 91,000 6' The databaseis not complete because not all health facilities have reported diarrhea-related illnesses to the public health authorities. 62 The DALY is a standard metric of the burden o f disease that combines life years lost as a result of illness and disability, with one DALYbeing equal to the loss o f one healthy life year (Murray and L6pez 1996). 84 Estimated Impacts on Health due to Insuflcient Water, Sanitation, and Hygiene 5.18 Table 5.3 presents the estimated impacts on health from insufficient water, sanitation, and hygiene. The estimates are based on the data in Table 5.2, taking into account the World Health Organization (WHO) estimate that 90 percent o f diarrheal illness is attributable to water, sanitation, and hygiene. DALYs lost to diarrheal illness (mortality andmorbidity) are presented inTable 5.4. More than 60 percent o fthe DALYs are from diarrhealchildmortality. Estimated Cost of Health Impacts 5.19 Total annual cost of health impacts associated with insufficient water, sanitation, and hygiene is estimated at C$1,210 to C$1,525 billion (Table 5.5). The cost o f diarrheal child mortality is based on the on the human capital approach (HCA). The cost o f morbidity includes the cost o f illness (medical treatment, medicines, and value o f lost time) and DALYs from morbidity valued at GDP per capita to reflect the cost o f reduced well-being associatedwith illness. Table 5.4: EstimatedDALYs Lost to DiarrhealMortality andMorbidity EstimatedAnnual DALYs Parameters Low High %of totalD A Y S Children (under age S)-increased mortality 44,000 55,500 62-69 Children (under age 5Fincreased morbidity 4,000 5,500 6 Population over age 5-increased morbidity 16,000 29,000 25-32% TOTAL 64,000 90,000 Table 5.5: EstimatedAnnualCost ofDiarrhealIllness Estimatedannual cost@illionpesos) Parameters Low High Mortality Childrenunder age 5 178 224 Morbidity Children under age 5 432 480 Population over age 5 493 704 Hospitalization-children under age 5 54 54 Hospitalization-population over age 5 53 53 Total annual cost 1,210 1,525 Table 5.6: EstimatedAnnualCost-of-Illness(Morbidity) by Category Estimatedannual cost fbillion vesos) Categories Low High Cost o fmedical treatments(doctors, hospitals, clinics) 351 351 Cost o f medicines 232 232 Cost oftime lost to illness 361 567 Total annual cost 944 1,150 Some researcherselect not to use age weighting, or report DALYswith andwithout age weighting. 85 5.20 Total annual cost-of-illness is presented in Table 5.6 for diarrheal morbidity. About 40 to 50 percent o f these costs are associated with the value o f time lost to illness (including care giving), and 50 to 60 percent are from cost o f treatment andmedicines. 5.21 Baseline data for the cost estimates o f morbidity inTables 5.5 and 5.6 are presented inTable 5.7. Percent o f diarrheal cases in the age group older than 5 years treated at medical facilities is estimated from percent o f treated cases among children (DHS 2000) and the ratio o f treated cases among children under age 5 to treated cases among the population over age 5. The latter ratio is from the I N S database discussed inthe Baseline HealthDatasection. Table 5.7: BaselineData for Cost Estimation Parameters Baseline Source Percentofdiarrheal cases treated at medical facilities (children <5 years) andwith medicines 29% DHS 2000 ....... .... Percentofdiarrheal cases treatedwith ORS (children <5 years) 36% .......................... DHS 2000 ...................................... .... Percento fdiarrheal cases treated at medical facilities (population 18-25% Estimatedfrom a combination - . _ _ _ ~ >5 years) andwith medicines ~- . ._ o f INS data andDHS-.2000 Average cost o f doctor visits (urban andrural)- pesos 35,000 Per consultations with Average cost o f medicines for treatment o f diarrhea-pesos 30,000 pharmacies, medical service providers, andhealth Average cost o f ORT per diarrheal case inchildren (pesos) 3,850 authorities Average duration ofdiarrheal illness indays (children andadults) 3-4 Assumption - .............. ........ ......"......... ._.......... ~ "_ Hours per day o fcare giving per caseo f diarrhea inchildren 2 ._...__-..-...-_I..." Assumption ".... Hours per day lost to illness per case o f diarrhea inadults 2 Assumption Value of time for adults (care giving andilladultsFpesoshour 2,100 Based onurbanandrural wages inColombia Hospitalization rate (% o f all diarrhea cases)-under 5 years old 0.75% Adjusted basedon evidence from Egypt(Larsen 2004). No Hospitalization rate (% of all diarrhea cases)-under 5 years old 0.5% . ..... .......- data available for Colombia ._ ..... Average lengthofhospitalization (days) 2 Adjustedfrom Egypt(Larsen, 2004) .I- ____._I___.__.-_I_ II Time spent onvisitation (hours perday) 4 Assumption Average cost ofhospitalization (pesos per day) 280,000 Per consultations with hospitals Diarrhea cases andhospitalizations causedbywater, sanitation, andhygiene 90% (WHO 2002b) 5.22 The value o f time for adults is based on national average wages. Economists commonly apply a range o f 50 to 100 percent o f wage rates to reflect the value o f time. The hourly rate o f C$2,100, or C$17,000 per day, reflects around 75 percent o f average wages inColombia.64These rates for value of time have been applied to both working andnonworkingindividuals. There are two reasonsfor applying the rates to nonworking individuals: most o f those adult individuals provide a household function that has a value; 64 This correspondsto a daily national averagewage rate of about C$22,000 to C$23,000. 86 andthere is anopportunity costto the timeofnonworking individuals, becausethey couldchoosetojointhe paidlabor force.65 HepatitisA, Typhoid,andParatyphoid 5.23 Recorded annual cases o f hepatitis A and typhoidparatyphoid in Colombia for 2000-03 are presented in Table 5.8. The data for 2003 report cases by age. Close to 20 percent o f cases of hepatitis A andclose to 10percent ofcases oftyphoidparatyphoid were among children under age 5. 5.24 Estimated annual cost o f these illnesses i s presented in Table 5.9 based on annual average cases during 2000-03. About 55 percent o f estimated cost is from hospitalization and 40 percent is from time losses for the illindividuals and their caregivers during illness. More than 70 percent o f the cost o f time losses i s associated with illindividuals andalmost 30 percent with care giving. Table 5.8: AnnualCasesof HepatitisA andTyphoidA'aratyphoid (2000-03) Year HepatitisA Typhoidand paratyphoid 2000 4,438 99 2001 6,405 373 2002 11,236 256 2003 6,513 1,503 Annual Average 7,148 558 Source: NationalInstituteofHealth, Colombia. Table 5.9: EstimatedAnnualCost of HepatitisA and TyphoidParatyphoid Categories Estimated total annual cost (billionpesos) Cost ofhospitalization 6.50 Cost of medication 0.40 Cost oftime losses 4.90 Total annual cost 11.80 Table 5.10: BaselineData for Cost Estimation Parameters Baseline Source Percento f cases being hospitalized 100% Assumption Average length ofhospitalization (days) "...........I ._ 3 .. Estimate Average cost ofhospitalization (pesos per day) 280,000 Basedon consultation with health careproviders and Average cost ofmedication (pesos per case) .....- 50,000 health careauthorities ..-__..I.._I-_ .. Average duration o f illness (days) 30 Estimate Value oftime lost to illness and care giving (pesos per day) 17,000 Basedon averagewages Care giving at home per day o f illness (hours per day) 3 Estimate 65 Some may argue that the value of time based on wage rates should be adjusted by the unemployment rate to reflect the probability ofobtaining paidwork. 87 5.25 Table 5.10 presents the baseline data for estimating the costs. It is assumed that all cases o f hepatitis A andtyphoidparatyphoid are hospitalized. The estimated cost o f hospitalization inTable 5.9 is therefore an upper bound. The value o f time lost to illness and care givingis around 75 percent o f average wage rates. Average duration o f illness is estimated to be 30 days, and the cost estimate in Table 5.9 assumes that 30 days are lost to illness, valued at C$17,000 per day.66This is likely to be an upper bound because some individuals recover faster and part o f the day during recovery may be o f productive use. Even with baseline data that are likely to be upper bounds, the total annual estimated cost o f hepatitis A andtyphoidparatyphoidis only a small fraction o fthe cost of diarrhealillness. Avertive Expenditures 5.26 Inthe presence of perceivedhealth risks, individuals often take avertive measuresto avoidthese risks. Economists usually consider these measures a cost o f health risks. If consumers perceive there is a riskof illness from the municipalwater supply, or from other sources of water supply they rely on, some consumers are likely to purchase bottled water for drinking purposes, or boil their water, or install water purification filters. The estimated cost o fthese measuresis presented inthis section. 5.27 Bottled Water. Approximately 775 million liters o f bottledwater were sold in Colombia in2001 according to the Annual Manufacturer Survey (DANE). The average factory price was about C$275 per liter. According to observations in stores in Bogoti, the average retail price ranged from C$200 per liter for five-gallon containers to C$l,OOO per liter for one-liter bottles. 5.28 To estimate the total annual retail cost o f bottled water consumption in Colombia, a retail price range o f C$480 to C$625 per liter was applied. The lower bound represents a 75 percent markup of average factory price. The upper bound represents an arithmetic average of retail prices for the most commonly sold quantities o f bottles (and containers). On this basis, the total annual cost o f bottled water consumption is estimated at C$375 billion to C$485 billion. 5.29 Boiling of Water. According to the Quality of Life Survey 2003 (DANE), 48 percent o fhouseholds inColombia boil their drinking water, either all the time or sometimes. Table 5.11 presentsthe estimated annual cost o fboiling water for those households, totaling C$75 billionto C$160 billionper year. 5.30 Table 5.12 presentsthe datausedto estimate the annualcost o fboiling drinkingwater. Itis assumed that the average daily consumption o f drinking water per person is 0.5 to 1.0 liters among households Table 5.11: EstimatedAnnualCost ofBoilingDrinkingWater Estimated annual cost (billion vesos) Categories Low High Cost ofbringingwater to boilingpoint Householdsusingelectricity 35 70 Householdsusingnaturalgas 10 20 Householdsusingpropane 18 35 Householdsusingother types ofenergy (mainly fuelwood) 6 24 Cost ofboilingwater for 10minutes All householdsboilingwater 6 11 Total annualcost 75 160 The cost oftime losses for childrenunder age 5 is assumedto be zero. 88 boiling water. The residential cost o f energy is estimated based on data from the Unidad de Planeacibn MineroEnergktica (UPME).The average stove eficiency is for electric, naturalgas, andpropane stoves. 5.31 Water PuriJication. The Quality of Life Survey 2003 (DANE) reports that 4.2 percent of households have drinkingwater purificationfilters installed intheir homes. The annual cost of household water purification is estimated at C$30billion to C$35 billion. This is estimated by annualizing the cost o f purificationequipment andfilters over their expected useful life, usinga discount rate of 10percent, an average useful life o f equipment o f 15 years, and an average lifetime o f filters o f 0.6 to 6 years. These useful lives represent averages for the most common equipment and filters used in Colombia. Unit costs for equipment and filters are presented inTable 5.13. These figures, and the useful life of equipment and filters, were obtained from stores inBogotb. Table 5.12: Baseline Data for Cost Estimation References and Parameters Data measurements Percentageo f households that boil their drinkingwater _ 48% DANEsurvey " .....".. "" ....... ~ ~ ~ Average_..I."daily consumption of drinkingwater 0.5-1 .O per personp6r day ..,- ....._......... -....... ...-.._-.-_.-...-. ............ .... ..-. ".l" ..-.__.-., Liters...--.--_..-.......-.....-. ~ I I ~ "._.I " 11*" ~1_1--....- ~ Percent of households usingelectricity 14% Percent o fhouseholds usingnatural gas 34% DHS 2000 anddata from Percent o fhouseholds usingpropane 31% UPME -....... Percent ofhouseholds usingother types....o f energy ...................................... 21% .-- .....I__.......1.-...^..-. Energy requirement of heating of water (100% 4,200 JoulesAtr,l degree efficiency) Average stove efficiency for heating o f water 50% Varies by type o f stove ~ ~~ _""-.---.-__.-I_.-..___ Cost o f residential electricity (economic cost) ___--.I-....-._-..-._.-_.-_-.350 PesoskWh Cost o f residentialnaturalgas._...._I__...___.___._-__..._____.I 406 Pesosper cubic meter "._,l_l-,." .-...._._I. ...,___.......... Average cost o fbottledpropane 39,000 Pesos (17.7 gallons) Table 5.13: Unit Costs of Water Purification Parameters Low High Percent o f households usingwater purificationequipment/filters 4.2% 4.2% Cost o f water purification equipment (most commonly used) 295,000 270,000 (pesos) Cost o freplacement filter (pesos) 95,000 22,500 Average useful life o f filters (years) 6 0.6 Average useful life o f equipment (years) 15 15 Table 5.14: EstimatedTotal Annual Household Cost of Avertive Expenditures Totalannual cost (billion pesos) Parameters Low Hinh ~ Cost of bottledwater consumption 315 485 Cost of householdboilingdrinking water 15 160 Cost ofhouseholdwater purification 30 35 Total cost 480 680 89 5.32 Table 5.14 presents a summary of the cost of avertive expenditures, amounting to a total of C$480 billion to (3680 billion per year. This represents 30 percent of the total estimated annual cost o f insufficient water supply, sanitation, andhygiene. Urban Air Pollution 5.33 The mean estimated annual cost of urban air pollution amounts to C$1,500 billion (Figure 5.11). About 65 percent of the cost is associated with mortality, and 35 percent with morbidity. Measured in terms of DALYs, mortality represents 50 percent and morbidity 50 percent. This section discusses the scientific evidence of the impacts of urban air pollution on health, the methodologies used to estimate health impacts inColombian cities, andthe socioeconomic valuation of these health impacts. 5.34 There i s substantial research evidence that outdoor urban air pollution has significant negative impacts on public health and results in premature deaths, chronic bronchitis, and respiratory disorders (Ostro 1994). The air pollutant that has shown the strongest association with these health endpoints is particulate matter (PM), andespecially particulates of less than 10 microns indiameter (PMlo) or smaller. Pope and others (2002) provide strong evidence that it is even smaller particulates (PM2.5) that have the largest health effects. The gaseous pollutants (sulfur dioxide [SO2], nitrogen oxide [NOx], carbon monoxide [CO], and ozone [O,]) are generally not thought to be as damaging as fine particulates. However, SO2may have important health consequences because it can react with other substances inthe atmosphere to form particulates (Krupnick 2005). Figure5.11: AnnualCosts of UrbanAir Pollution(billionpesos) I 1000 800 600 400 200 0 Cardiopulmonary and LungCancerMortality RespiratoryMorbidity Table5.15: BaselineData for CitieswithParticulateMatter MonitoringData Keyparameters Bogota Bucaramanga3 A W A 4 Cali Population(million) 2002 6.68 0.74 2.80 2.26 Adult population>= 15yrs (000) 4.67 0.49 1.79 1.60 Childrenpopulation<= 14yrs (000) 2.01 0.25 1.01 0.66 Annual average PMlo(pg/rn3)' 62 , 56 52 46 Annual average PM2.5(pg/rn3)* 37 34 31 27 1. PMlo figures are populationweighted by PMlolevels in four zones ineach city. 2. PM2.5is calculated basedon a PM2,5/PMlo ratio o f 0.6. 3. IncludesFloridablanca andG i r h 4. Area Metropolitana del Valle de Aburra (Medellin, Bello, Envigado, Itagui, etc.). Source: Population figures are basedon estimatesby DANE. 90 5.35 Colombia is highly urbanized with 72 percent of the population living in urban areas (DANE 2002). Close to 50 percent of the population lives incities with more than 100,000 inhabitants, and close to 30 percent live in cities with more than 1millioninhabitants. Only some cities inColombia have PMlo monitoring data (Tables 5.15 and 5.16). Their totalpopulation is 12.5 milli~n.~' 5.36 Based on the current status of worldwide research, the risk ratios or dose response coefficients from Pope and others (2002) are likely to be the best available evidence for the mortality effects of ambientparticulate pollution (PM2.5). Pope andothers (2002) found a statistically significant relationship between levels of PM2.5 and mortality rates; all-cause mortality increasedby 4 to 6 percent for every 10 micrograms per cubic meter (p.g/m3)increase in PM2.5. The increase in cardiopulmonary mortality was 6 to 9 percent, and 8 to 14 percent for lung cancer. No statistically significant relationship was found between levels of PM2.5 and all other causes of mortality. The impactson health due to air pollutionwere converted to DALYs to facilitate a comparison to health effects from other environmental risk factors (Table 5.17). 5.37 It is estimatedthat urbanair particulate pollution causesaround6,000 prematuredeaths andabout 7,400 new cases of chronic bronchitis, annually. Annual hospitalizations due to pollution are estimatedat Table 5.16: BaselineData for Cities without Particulate Matter MonitoringData Citv size (inhabitants) Keyparameters =- 1million' 500,OOlrl milliond 100,00lr500,000" Total population(million) 2002 1.30 1.64 5.98 Adult population>= 15 yrs (000) 0.89 1.11 4.03 Childpopulation <= 14yrs (000) 0.41 0.53 1.95 Ann~alaveragePMlo (pg/m3)" 50 45 40 Annual averagePM2.5(pg/m31b 30 27 24 a. PMlo figures are approximationsbasedon population size inrelation to cities with PMlo data. b.PM2.5is calculatedbasedon aPM2,5PMlo ratio of0.6. c. Barranquilla. d. Cartagena(0.95 million) andClicuta (0.69 million). e. 24 cities with an average populationof 250,000 per city. Source: Population figures are basedon city-specific estimatesby DANE. Table 5.17: Estimated Impacts on HealthDueto UrbanAir Pollution Health categories Total cases TotalDALYs Prematuremortality 6,040 45,300 Chronic bronchitis 7,410 16,300 Hospital admissions 12,970 210 Emergency roomvisitdoutpatient hospital visits 255,000 1,150 Restricted activity days 42,000,000 12,640 Lower respiratory illness inchildren 585,000 3,800 Respiratory symptoms 135,000,000 10,100 Total 89,500 67 To calculate population-weighted PMlo levels, each city or metropolitan area ( M A ) was partitioned into four zones (residential, industrial, downtown, and commercial areas). PMlo concentrations from monitoring stations in eachzone were thenweighted by the zone's population share to obtain population-weighted PMlo levels. 91 close to 13,000, and emergency room visitdoutpatient hospitalizations at 255,000 per year. In terms o f annual DALYslost, mortality accounts for an estimated 51percent, chronic bronchitis around 18 percent, restricted activity days (RADS)14percent, andrespiratory symptoms 11percent. 5.38 More than one-third o fall health effects are inBogotii. This is significantly higher than inrelation to the population o f Bogotii, and sterns from the higher P M levels in the city than in most other cities. More than 20 percent o f estimated health effects are in the cities with population o f less than half a million (Table 5.18). However, their share o f estimated health effects i s significantly lower than their population share, because o fthe lower pollution levels expected inthese cities. 5.39 Cost o f mortality is based on the human capital approach (HCA) and the value o f statistical life (VSL), thus the large range in cost. A measure of the welfare cost of morbidity is often based on the willingness-to-pay (WTP) to avoid or reduce the risk o f illness. This measure is often found to be several times higher than the cost o f medical treatment and the value o f time losses (Cropper and Oates 1992), and reflects the value that individuals place on avoiding pain and discomfort. However, there are not a sufficient number of WTP studies in Colombia. For this reason, the cost-of-illness (COI) approach Table5.18: EstimatedHealthImpactbv Citv Percent of total Parameters exposedpopulationa Percent of total casesb Citieswith monitoring ofPM Bogoth 31 38 Ciudadde Bucaramanga 3 4 AMVA 13 13 Cali 10 10 Citieswithout monitoring ofPM > 1millioninhabitants 6 7 500,000-1 million inhabitants 8 7 100,000-500,000 inhabitants 28 21 a. Exposedpopulationis reportedinTables 5.15 and 5.16. b. Total cases are reportedinTable 5.17. Table5.19: EstimatedAnnualCost of HealthImpacts Total annual ccost Health categories Billionpesos Percent (mean) Mortality 200-1,765 65 Morbidity: Chronicbronchitis 90 6 Hospitaladmissions 25 2 Emergencyroomvisits/outpatienthospitalvisits 40 3 Restrictedactivity days (adults) 270 18 Lowerrespiratoryillness inchildren 50 3 Respiratorysymptoms (adults) 45 3 Total cost ofmorbidity 520 35 Total cost (mortality andmorbidity) 720-2,285 100 *Annual cost is roundedto nearest5 billion, and percentagesare roundedto nearestpercent. 92 (mainly medicalcost and value o ftime losses) has therefore been supplemented by a proxy for the cost o f pain and discomfort in this report. The proxy applied is valuation o f DALYs at GDP per capita. The value-of-time losses represent almost 50 percent o f total cost, and the cost o f pain and discomfort (proxied by DALYsvalued at GDP per capita) representssomewhat more than one-third. 5.40 The value o f time for adults i s based on urbanwages. Economists commonly apply a range of 50 to 100 percent o f wage rates to reflect the value o f time. The rate o f C$20,000 per day i s about 75 percent o f average urban wages in Colombia. This rate for value o f time has been applied to both working and nonworking individuals. There are two reasons for applying the rates to nonworkingindividuals: most o f those adult individuals provide a household function that has a value, and there is an opportunity cost to the time o f nonworking individuals, because they could choose to join the paid labor force.68Estimated lost workdays per year are based on frequency o f estimated medical treatment plus an additional seven days for each hospitalization andone extra day for each doctor andemergency visit. These days are added to reflect time needed for recovery from illness. To estimate the cost o f a new case o f chronic bronchitis, the medical cost and value o f time losses have been discounted over a 20-year duration o f illness. An annual real increase o f 2 percent inmedical cost and value o f time has been applied to reflect an average expected increase in annual labor productivity and real wages. The costs are discounted at 3 percent per year, a rate commonly applied by WHO for health effects (Table 5.20). IndoorAir Pollution 5.41 The mean estimated annual cost o f health impacts from indoor air pollution associated with the use o f traditional fuels (mainly fuelwood) i s C$415 billion. As presented in Figure 5.12, adult female chronic obstructive pulmonary disease (COPD) mortality represents 28 percent o f this cost. Acute Table5.20: EstimatedAnnualCost of Morbidity Annual cost Billionpesos Percent Cost ofmedicaltreatments (doctors, hospitals, clinics) 80 16 Cost oftime lost to illness 245 47 DALYs(valued at GDPper capita) 195 37 Total 520 100 Figure5.12: AnnualCosts of Indoor Air Pollution(billionpesos) 250 I 200 150 I00 50 0 ARI Morbidity COPD Mortality COPD Morbidity ARI ChildMortality Some may argue that the value of time based on wage rates should be adjustedby the unemploymentrate to 93 . . respiratory illness in children and adult females represents 47 percent o f the cost, and respiratory child mortality about 12percent. COPD morbidity inadult females represents 13 percent o f the total cost. 5.42 WHO (2002b) estimates that 1.6 million people die eachyear globally due to indoor smoke from the use o f traditional fuels in the homes. The most common o f such fuels are wood, agricultural residues, animal dung, charcoal, and, insome countries, coal. The strongest links betweenindoor smoke and health are for lower respiratory infections, COPD, and cancer o f the respiratory system, with indoor smoke causing an estimated 37.5 percent, 22 percent, and 1.5 percent, respectively, o f these illnesses globally (WHO 2002b). 5.43 There are two main steps in quantifyingthe health effects: the number o f people or households exposed to pollution from solid fuels needs to be calculated, andthe extent o fpollution, or concentration, should ideally be measured; and the health impacts from this exposure should be estimated based on epidemiological assessments. Once the health impacts are quantified, the value o f this damage can be estimated. TraditionalFuel Use 5.44 The Demographic and Health Surveys (DHS) in 1995 and 2000, conducted among urban and rural households throughout Colombia, contain information on household use o f traditional fuels for cooking. The data from the DHSs are presented in Table 5.21, indicating that around 60 percent o f rural households andless than 3 percent o f urban households used fuelwood or charcoaVcoa1products in2000. Nationally, this representsaround 18percent o f all households. 5.45 Table 5.21 also indicates that liquefied petroleum gas (LPG) or gas made rapid inroads among both rural and urban households from 1995 to 2000, replacing both traditional fuels and electricity for cooking. The number o f rural households usingtraditional fuel declined by more than a percentage point per year from 1995 to 2000. Nevertheless, the share o f rural households using traditional fuels remains substantial, andcan be suspectedo fbeingassociated with significant respiratory health impacts. Table 5.21: FuelsUsedfor CookinginColombia Percent of households Rural Urban National total Fuel 2000 1995 2000 1995 2000 I995 Fuelwood 57.4 63.7 2.1 2.9 17.0 21.0 Charcoal, coal, lignite 3.2 2.5 0.3 0.7 1.1 1.2 Subtotal 60.6 66.2 2.4 3.6 18.1 22.2 LPGandGas 32.0 18.0 76.6 56.2 64.6 44.8 Electricity 5.0 9.9 17.0 32.3 13.8 25.6 Kerosene 0.6 2.0 0.8 1.8 0.8 1.8 Other 1.8 3.9 3.2 6.1 2.7 5.6 Subtotal 39.4 33.8 97.6 96.4 81.9 77.8 Source: ColombiaDemographic andHealthSurvey 1995 and2000. reflect the probability o f obtaining paidwork. 94 Table 5.22: Household Fuelwood Use ~ Parameters I988 1995 2000 2003 Fuelwoodconsumption(million tondyear) 8.97 5.62 4.92 4.64 Average householdconsumption(tons/year)* 3.15 3.15 3.15 3.15 Percentageofhouseholdsusingfuelwood(nationallevel) 42% 23% 18% 17% *Average householdconsumptionis a broadestimate, andis for householdsusingfuelwood. Source: Fuelwoodconsumptionis fromUPME energy balances. 5.46 An estimate of the percentage of households using traditional fuels can also be provided from UPMEenergy balances. This is presented inTable 5.22 basedontotal fuelwood consumptionandabroad estimate o f fuelwood use per household (among households using fuelwood). The trend from 1988 to 2003 shows a substantial decline inthe percentage o f total households usingfuelwood, and the estimates for 1995 and2000 are quite consistent with the data from the DHS surveys. Health Risk Assessment 5.47 Smith (2000) provides a review o f research studies around the world that have assessed the magnitude o f health effects from indoor air pollution from solid fuels use. The odds ratios for acute respiratory ilnnes (ARI) and COPD are presented in Table 5.23. The odds ratios represent the risk o f illness for those who are exposed to indoor air pollution compared to the risk for those who are not exposed. The exact odds ratio depends on several factors such as concentration level o f pollution in the indoor environment and the amount o f time individuals are exposed to the pollution. A range o f low to highratios is therefore presentedinTable 5.23 whichreflectsthe reviewby Smith(2000). 5.48 The odds ratios inTable 5.23 have beenapplied inthis chapter to young children under age 5 (for AN) and adult females (for ARI and COPD) to estimate the increase in mortality and morbidity associated with indoor air pollution.69It is these population groups that suffer the most from indoor air pollution. This is because they spend much more o f their time at home, andor more time cooking than older children andadult males. Table 5.23: Health Risksof Indoor Air Pollution Oddsratios Risks Low High Acuterespiratoryillness 2 3 Chronic obstructivepulmonarydisease 2 4 Source: Smith(2000). 5.49 Dennis and others (1996) present estimates o f impacts o f indoor air pollution on obstructive airways disease (OAD) among a sample o f women in Bogoth. A sample o f case subjects with OAD and control subjects without OAD was drawn from hospitals in the city. Infomation was collected from the subjects on their life history o f fuelwood use, and other variables known to be associated with OAD. The average age o f the subjects was 63 years. The study found an odds ratio (OR) o f 3.9 (controlling for tobacco smoking, passive smoking, age, and socioeconomic variables), that is, the risk o f developing 69 Although Smith (2000) presents odds ratios for lung cancer, this effect ofpollutionis not estimatedinthis report. This is becausethe incidenceoflungcancer amongrural womenis generallyvery low. The number of cases inrural Colombiaassociated with indoor air pollution i s therefore likelyto be minimal. 95 OAD was found to be 3.9 times higher among the women who had a life history o f fuelwood use compared to women from households not usingfuelwood. The average number o f years o f fuelwood use was 33 among the subjects with OAD, and 18 among the subjects without OAD. 5.50 Studies around the world have also found linkages between indoor air pollution from traditional fuels and increased prevalence o f tuberculosis and asthma. It is also likely that indoor air pollution from such fuels can cause an increase in ischaemic heart disease and other cardiopulmonary disorders. As discussed in the section on urban air pollution, Pope and others (2002) have found that the largest effect of urban fine particulate pollution on mortality i s for the cardiopulmonary disease group. Because indoor smoke from traditional fuels is highin fine particulates, the effect on these diseases might be substantial. However, more research i s required in order to draw a definite conclusion about the linkage and magnitude o feffect. Baseline Health Data 5.51 To estimate the effects on health due to indoor air pollution from the odds ratios in Table 5.23, baseline data for ARI and COPD must be established. These data are presented in Table 5.24, along with unit figures for DALYs lost to illness and mortality. Data on COPD mortality, and especially morbidity incidence, according to international disease classification, are not readily available for Colombia. Regional estimates from WHO (2001) andShibuya, Mathers, andL6pez (2001) have therefore beenapplied. 5.52 The national average two-week prevalence rate o f ARI in children under age 5 from the Colombia DHS 2000 is used to estimate total annual cases o f ARI in children under 5 and annual cases per child under 5. The procedure applied is to multiply the two-week prevalence rate by 52/3 to arrive at anapproximation of the annual cases of ARI per child. The prevalence rate was not multipliedby 26 two- week periods (that is, 52/2), but multiplied by 52/3 because the average duration o f ARI i s assumedto be about seven days. This implies that the two-week prevalence captures half o f the ARI prevalence in the week prior to andthe week after the two-week prevalence period. 5.53 The DHS household survey does not (nor does any other household survey in Colombia) provide information on ARI in adults. However, the I N S has a large database on cases o f ARI for several years reported by each department inColombia basedon information reported by healthcare facilities. While this database is not complete, it provides an indication o f the annual incidence o f ARI per child relative to annual incidence per adult.70 An analysis o f the database suggeststhat ARI incidence inchildren under age 5 is up to six times higher than the incidence inthe population over age 5. It shouldbe noted, however, that the database contains information on cases o f ARI treated at health facilities. In general, the percentage o f cases of ARI that are treated at health facilities is higher among young children than older children and adults. For instance, according to the DHS 2000, the percentage o f cases of ARI among 4-year-old children is 10 percent lower than among children ages 0 to 4. Thus the incidence ratio o f 6, as suggested from the INS database, is likely an overestimate. The annual cases o f ARI per adult female (>15 years) presented in Table 5.24 is therefore estimated at 116thto (1/0.9)*1/6th o fthe annual cases per childunder age 5. 5.54 ARI mortality inchildren under age 5, as presented inTable 5.24, is based on data from DANE on child mortality rates and estimated percentage o f child mortality due to ARI. The lower bound for ARI mortality (1,5 10 deaths) i s based on official death records, while the upper bound (1,890 deaths) is based on 7.5 percent o f total estimated child mortality publishedby DANE.71 70 The database is not complete becausenot all healthfacilities havereportedARI to the public healthauthorities. 7' Official deathrecordsrepresent a significantunderstatementof actualdeaths inmost developingcountriesdue to underreportingby households. DANEtherefore publishesestimatedmortality inadditionto official records. 96 5.55 Table 5.24 also presents DALYs per cases o f ARI and COPD, which are used to estimate the number o f DALYs lost because o f indoor air pollution. While the disability weight for ARI morbidity is the same for children andadults (0.28), andthe duration o f illness is assumedto be the same (seven days), the DALYs per 100,000 cases of ARI are much higher for adults. This is because DALY calculations involve age weighting that attaches a low weight to young children, and a higher weight to adults, that corresponds to physical and mental development stages.72For ARI child mortality the number o f DALYs lost is 34. This reflects an annual discount rate o f 3 percent o f life years lost. 5.56 DALYs lost per case o f COPD morbidity and mortality are based on life tables and age-specific incidence o f onset o f COPDreported by Shibuya, Mathers, andLbpez (2001). A disability weight of 0.2 has been applied to COPD morbidity, which is for the region o f Latin America as published by the U.S. National Institutes o fHealth?3A discount rate o f3 percent is applied to COPDmorbidity andmortality. Estimated Health Impacts 5.57 Annual new cases o f ARI and COPD morbidity and mortality (Di) from fuelwood smoke was estimated usingthe following equation: Di=PAR *Die (1) where Die is baseline cases o f illness or mortality, i(estimated from the baseline data in Table 5.2), and PAR is givenby: PAR= PP*(OR-l)/(PP*(OR-1)+1) (2) where PP is the percentageo fpopulation exposedto fuelwood smoke (18 percent for 2000 o fthe population according to Table 5.22), andOR is the odds ratio (or relativerisk ratio) shown inTable 5.23. Table5.24: BaselineDatafor EstimatingHealthImpacts Parameters Baseline Source FemaleCOPDmortalityrate(%oftotal female deaths) 3.1% WHO (2001) and Shibup, FemaleCOPDincidencerate(per 100,000) go Mathers, andUpez (2001) ._............ ARI2-week PrevalenceinChildrenunder5 years _ ............... 12.6% DHS2000 ... Estimatedannualcases.ofARI._perchildunder...5 years ..... ................ ............_ 2.2 EstimatedftomDHS2000 " " ._ .. EstimatedannualcasesofARI peradultfemale(> 15years) 0'36-0'41 Estimatedftom acombinationof INS dataandDHS2000 .... ............... ......................... . .........................."....... ARImortality inchildrenunder5 years(%ofchildmortality) 7*5% Basedondataftom DANE __I____..___._._._._._" ARImortality inchildrenunder5 years (cases._peryear) 1,510-1,890 " DALYsper 100,000cases ofARIinchildrenunder5 ~ 165 DALYsper 100,000 cases ofARI infemaleadults(>15) 700 DALYspercaseofARImortality inchildrenunder5 34 EstimatedftomWHOtables DALYsper case ofCOPDmorbidity inadultfemales 2.25 DALYsper case ofCOPDmortality inadult females 6 72 Some researchers elect not to use age weighting, or reportDALYswith andwithout age weighting. l3 See: http://www.fic.nih.gov/dcpp/weights.xls. 97 5.58 The results are presented inTable 5.25. Estimated cases o f ARI child mortality andARI morbidity (children and female adults) from indoor air pollution represent about 16 to 25 percent of total ARI in Colombia. Similarly, the estimated cases o f COPD mortality andmorbidity represent about 15 to 35 percent o f total estimated female COPD from all causes. Incontrast, Dennis andothers (1996) found that indoor air pollution was the cause of 50 percent of COPD in the sample of women in Bogot6. This high number is largely due to the fact that most of those women hadbeenusingfuelwood duringpart o f their lives, andthat the odds ratio estimated by Dennis andothers is close to the upper boundused inthis report. Table 5.25: EstimatedAnnualImpactsonHealthDueto IndoorAir Pollution ~~~ Estimated annual cases Low High Acute respiratoryillness (ACI) Children(underage 5Fincreased mortality 265 455 Children(under age 5)-increased morbidity 1,600,000 2,800,000 Females(age 15 and older)-increased morbidity 900,000 1,500,000 Chronic obstructivepulmonarydisease(COPD) Adult females-increased mortality 455 1,040 Adult females-increased morbidity 2,800 6,400 Total disability adjustedlife years (DALYs)-mortality 27,000 51,700 Table 5.26: EstimatedDALYsLostto IndoorAir Pollution Estimatedannual DALYs Parameters Low High %of totalDALYs Acuterespiratoryillness (ARI): Children(under age 5)-increased mortality 9,000 15,600 30-33 Children(under age 5)-increased morbidity 2,700 4,600 9-10 Females(age 15 andolder)-increased morbidity 6,300 10,900 21-23 Chronic obstructivepulmonarydisease(COPD): Adult females-increased mortality 2,700 6,200 10-12 Adult females-increased morbidity 6,300 14,400 23-28 5.59 Table 5.26 presents the estimated health impacts in terms o f DALYs. An estimated 27,000 to 52,000 DALYs are lost each year due to indoor air pollution. About 40 to 45 percent i s from mortality, andabout 55 to 60 percent from morbidity. Estimated Cost of Health Impacts 5.60 Total annual cost o f indoor air pollution is estimated at C$240 to C$630 billion, with a mean estimate o f C$415 billion (Table 5.27). The cost o f mortality is based on the value o f statistical life (VSL) for adults, and on the humancapital approach (HCA) for children. The cost o f morbidity includes the cost o f illness (medical treatment, value o f lost time, andso forth) and DALYsfrom morbidity valued at GDP per capitato reflect the cost of reducedwell-being associated with illness. About 42 percent o f this cost is associatedwith COPD, and 58 percent with ARI.74COPD and ARI mortality represents about 40 percent of the total cost, andmorbidity about 60 percent. 74 Basedonthe meanestimatedannual cost. 98 Table 5.27: EstimatedAnnualCost of IndoorAir Pollution Estimatedannual cost (billionpesos) Parameters Low High Acuterespiratory illness (ARI): Children(under age 5Fincreasedmortality 35 62 Children(underage +increased morbidity 70 122 Adult females-increased morbidity 72 124 Chronic obstructivepulmonarydisease (COPD): Adult females-increased mortality 20 218 Adult females-increased morbidity 33 74 Total cost 230 600 5.61 Cost-of-illness is presented in Table 5.28 for ARI and COPD m~rbidity.~' About 60 percent o f these costs are associated with the value o f time lost to illness (including care giving), and40 percent are from cost o f treatment and medicines. 5.62 Baseline data for the cost estimates o f morbidity inTable 5.20 are presentedinTable 5.29. Percent of adult ARI cases treated at medical facilities is estimated from percent o f treated cases among children (DHS 2000) andthe ratio o f treated cases among children under age 5 to treated cases among the population over age 5. The latter ratio is from the INS database discussedinthe Baseline HealthData section. 5.63 The value o f time for adults i s based on rural wages. Economists commonly apply a range of 50 to 100percent o f wage rates to reflect the value o ftime. The hourly rate of C$1,500, or C$12,000 per day, reflects around 75 percent o f rural wages in These rates for value of time have been applied to both working and nonworking individuals. The rates are applied to nonworking individuals because most of them provide a household function that has a value, and there is an opportunity cost to the time o f nonworking individuals who could choose to join the paid labor force.77 Table 5.28: EstimatedCost-of-Illness by Category Estimated annual cost fbillion Desos) Categoly Low High Cost ofmedicaltreatments (doctors, hospitals, clinics) 21 38 Cost ofmedicines 22 39 Cost oftime lost to illness 65 113 Total 108 190 5.64 There is very little information about the frequency of doctor visits, emergency visits, and hospitalization for COPD patients in any country in the world. Schulman (2001) and Niederman and others (1999) provide some information on this from the United States and Europe. Figures derived from these studies have been applied to Colombia. Estimated lost workdays per year are based on frequency of estimated medical treatment plus an additional seven days for each hospitalization and one extra day for each doctor andemergency visit. These days are added to reflect time neededfor recovery from illness. 75 These costs do not includethe valuationof DALYs. 76 This corresponds to a daily rural wage rate of C$16,000. Incontrast, averagewages inmajor cities inColombia are around C$25,000. 77 Some may argue that the value of time based on wage rates should be adjusted by the unemploymentrate to reflect the probability o f obtainingpaidwork. 99 Table 5.29: BaselineData for Cost Estimation ~~ Parameters Baseline Source Acute respiratory illness (ARI) _.. . ._ ...... . PercentofARI cases treatedat medical facilities (children <5 years) 35% 2000 (rural children) _ . -DHS. ..... ....... . ..." . Percento fARI cases treatedat medical facilities (adults > Estimated from a combination of 15 years) 32% ...... - ....... ................................................ .-..I__..." I N S data andDHS 2000 ....... . Average cost o fdoctor visits inrural areas (mainly Per consultations withpharmacies, primaryhealth carecenters) (pesos) 20 000 medical serviceproviders, and Cost o f medicines for treatment o fARI (pesos) . ................................................. health authorities ........... ............. ........... .....16,000-21000 ...... .......................... Percento f ARI cases treatedwith medicines 50% DHS 2000 ___. ~ Average duration ofARI indays (children and adults) . . 7 .Assumption ... .... ..... .. ................................................................................................................................................................................................................................................................ Hours per day o f caregiving per case o fARI inchildren 2 Assumption .............. ._ . .... .................................................................... Hoursper day lost to illness.......................................................................................................... per case ofARI inadults 3 Assumption . ... ..".__I.......... .. .................................................................................................................................................................................................. Value o f time (care giving and illadults) (pesoshour) 1,500 _ ...... Basedon rural wages inColombia ........" ".. " .. Chronic obstructive pulmonary disease(COPD) __ ................ ~ "__.-- __Average duration ofillness (years) 20 Shibuya, Mathers, and .... ..... ___Basedon L6pez (2001) ~ Percentof COPD patientsbeinghospitalized per year 1.5% Average length ofhospitalization (days) 10 FromSchulman (2001) and Average number o f doctor visits/COPD patienvyear 1 Niedermanandothers (1999) Percento f COPD patientswith an emergency doctorhospital outpatient visit per year 15% . ........... ........... I_" Estimated lost work days (including household work Estimatedbasedon frequency o f days) per year per COPD patient 2.6 doctor visits, emergencyvisits, and -. ........ .- ... ............................................. hospitalization . . ..... Cost o fhospitalization (pesos per day) 280,000 Cost o f emergencyvisit, rural (pesos) 25,000 Per consultations with medical serviceproviders, andhealth Cost of doctor visit, rural (mainly primary health clinic) authorities (pesos) 20,000 ,-" ~ _ _ _ . - - . "_ " _ ~ Value of time lost to illness (pesosper day) 12,000 Basedon rural wages inColombia Annual real increases ineconomic cost o fhealth services 2% andvalue o ftime . . . . . . . . . . ..........."......... - -Estimate ......... . .... Annual discount rate 3% Applied byWHO for healtheffects 5.65 To estimate the cost of a new case o f COPD, the medical cost and value of time losses have been discounted over a 20-year duration o f illness. An annual real increase of 2 percent in medical costs and value of time has been applied to reflect an average expected increase in annual labor productivity andreal wages. The costs are discounted at 3 percent per year, a rate commonly appliedby WHO for healtheffects. Agricultural Land Degradation 5.66 The mean estimated annual cost o f land degradation is C$1440 billion, of which soil erosion represents about 60 percent and soil salinity about 40 percent (Figure 5.13). These costs are the value of 100 crop yield reductions associated with salinity and erosion. It should be noted that data limitations have prevented an estimate of the cost of pasture (rangeland) degradation. The estimated costs of land degradation in Colombia are also higher than those of other similar-income countries. When compared with a group of North African and Middle Easterncountries, the magnitude of the damages of increased erosionand salinity inColombia is only lower thanthose of Egyptand Syria (Figure 5.14). Figure 5.13: Annual Costs of AgriculturalLand Degradation(billion pesos) 1000 1 I Soil Erosion Soil Salinity Figure 5.14: Costs of EnvironmentalDegradation (Erosion and Salinity) 1.20% 1.OO% 2 0.80% 0.60% 0 $ 0.40% 0.20% 0.00% I Egypt Syria Colombia Algeria Jordan Tunisia LebanonMorrocco Source: Tunisia and Lebanon: Sarraf, Larsen, and Owaygen (2004); Algeria: Ministere de l'Am6nagement du Temtoire et de I'Environnement(2002); Egypt:World Bank (2002); Morocco: World Bank (2003); Syria: Serraf, Bolt, andLarsen(2004); Jordan: METAP (2000). 5.67 An estimated 4.25 million hectares are under cultivation in Colombia, of which 0.9 million hectares are irrigated. Permanent pasture constitutes close to 42 million hectares, according to Food and AgricultureOrganization statisticsfor 2001. 5.68 There is a general perception that pasture (rangeland) is overextended in Colombia, that crop cultivation in many instances is marginalized to erosion-prone hillsides (World Bank 1996; Heath and Binswanger 1998), andthat the Atlantic Regioninthe northernpartofColombia suffers from soil salinity. 5.69 There are very few studies of the extent of land degradation in Colombia, and of the effect of degradation on agricultural productivity. No systematic and comprehensivestudies have beenundertaken 101 o f soil salinity levels in the Atlantic Region. A recent study o f salinity in the Cauca Valley, however, found that about 7 percent of a study area o f 192,000 hectares has soil salinity exceeding 3 decisiemens per meter (dS/m). About 55 percent has salinity inthe range of 07 to 3.0 dS/m, and 38 percent ofthe area has salinity o f less than 0.7 dS/m.78While soil salinity levels below 3 dS/m are generally considered moderate, yields o f many vegetables are affected by salinity exceeding 1.O to 2.0 dS/m. Table 5.30: Indicators,ofLandDegradation High or vely high Moderate or high Total area erosion soil salinity Department (km") (% of total area) (% of total area) Amazonas 110,213 0 0 Antioquia 63,307 12 10 Arauca 23,784 48 0 Atlantic0 3,324 73 74 Bogota, D.C 1,642 8 0 Bolivar 26,644 17 45 Boyaca 23,076 29 5 Caldas 7,444 6 13 Caqueta 89,645 13 0 Casanare 44,435 66 0 Cauca 29,883 16 2 Cesar 22,614 50 63 Cordoba 25,061 55 44 Cundinamarca 22,490 32 16 Choco 47,321 1 2 Guainia 70,679 1 0 Guaviare 55,080 5 0 Huila 19,240 32 20 La Guajira 20,506 81 79 Magdalena 23,076 33 84 Meta 86,047 50 0 Nariiio 30,832 9 3 Norte de Santander 21,995 15 6 Putumayo 26,011 4 0 Quindio 1,948 3 0 Risaralda 3,599 7 5 Santander 30,475 20 8 Sucre 10,719 54 80 Tolima 24,061 24 32 Valle del Cauca 21,277 23 18 Vaupes 53,546 1 0 Vichada 99,874 41 0 All Colombia 23 10 Source: Basedondata from IDEAM(2004). 78 Autonomous RegionalCorporationofthe CaucaValley (CVC). 102 5.70 CORPOICA (Baquera Haeberlin andothers 2003) recently studiedthe cost o f soil erosion inselect sites in four departments. The departments are Caqueta, Meta, Santander, and Tolima. Several methodologies were employed, including hedonic price and productivity models. The results indicate that the cost o f erosion, interms o fimpacts on agricultural yields, is substantial inerosion-prone areas. Land Area AIficectedby Erosion and Salinity 5.71 While the study by Corpoica is a very important contribution to understanding the cost o f erosion inColombia, it is difficult to extrapolate its findings to the national level. Inthe absence of nationwide studies o f erosion and salinity, it is necessary to rely on data published by the Institute o f Hydrology, Meteorology and Environmental Studies (Instituto de Hidrologia, Meteorologia y Estudios Ambientales, IDEAM)that provide somebroadperspectives on landdegradation ineachdepartment inColombia. These data are presented in Table 5.30. They indicate that around 10 percent o f the land area in the country is subject to moderate to highlevels o f soil salinity, and 23 percent is subject to high or very high levels o f erosion. The data are consistent with the general view that the northern region o f Colombia is particularly affected by soil salinity, with saline conditions in45 to 85 percent o f landarea inthe northern departments. Interms oferosion, according to Table 5.30, highor very higherosionispresentinmore than50 percent of landareainsevendepartments. 5.72 Based on the above data, a regression analysis was undertaken with the following equation: where q is the index o f relative crop yields, E i s percentage o f landareathat i s eroded, S is the percentage o f landarea that is saline, t is farmtechnology, andi= 1, nrepresentsdepartments. 5.73 The data provided by DANEandMARDwere not sufficient to construct a relative yield index for all departments, and the econometric estimation o f (1) was therefore limited to 19 departments and an aggregate o f other departments, that is, 20 observations. Department-specific data on farm technology was limited to share o f cultivated land under irrigation. However, no statistical significance was found, andthe technology variable was therefore left out o fthe final estimationo f (1):' Table 5.31: EstimatedRegressionCoefficients Parameter B t-statistic Erosion(E) -0.36 -2.61 Salinity (S) -0.31 -3.64 R2=0.79; n=20 5.74 The estimated coefficients for erosion and salinity are presented in Table 5.31, based on the relative yield index that was constructed from the arithmetic average crop yields." The coefficients suggest that department crop yields decline by about 0.3 to 0.35 percentage points (relative to the national average yield) for every 1percentage point increase insaline or eroded landarea." 79 The irrigationvariablemaybetoo outdatedto reflect currently irrigatedareas. Equation(1) was also estimatedusing the weightedyieldindex. The erosionand salinity coefficients were quite similar to the estimatesinTable 5.31, but Rzwas lower. Equation(1) was estimatedinlevels. Log andsemi-log forms providedvery poorresults. 103 5.75 The coefficients inTable 5.31 were then applied to equation (1) to provide predicted yields for each department based on the departmental soil erosion and salinity data. A simulation was then undertaken whereby the salinity and erosion variables were set at zero, in order to estimate expected yields in the absence o f salinity and erosion. The difference inyields is the estimated reduction inyields associatedwith erosion andsalinity. The national average statisticso fthis simulation are presentedinTable 5.32. 5.76 The results of the simulation discussedabove were then applied to the gross output value ineach department to estimate the cost o f erosion and salinity. The gross output value was calculated based on producer prices inColombiareportedby FAO. 5.77 Aggregate national estimates o f land degradation costs are presented in Table 5.33. It should be notedthat cost o f erosion relative to salinity is muchhigher than the statistics inTable 5.33 indicate. This is because Table 5.33 is based on arithmetic averages o f percentage effects on yields of land degradation, while the estimated costs inTable 5.33 are basedon crop composition andtotal hectares under cultivation ineachdepartment. 5.78 An alternativeapproach to estimating the cost ofsoil salinity was also undertaken inthis study for the seven departments inthe Atlantic Region that are most effected by salinity. Crop-specific soil salinity thresholds and salinity yield coefficients from the empirical international literature were applied to estimate the cost o f soil salinity (FA0 1998; Kotuby-Amacher, J. and others 1997; Resources Science Centre 1997). Costs were estimated for a plausible range o f soil salinity levels ranging from 3 to 5 dS/m. A plausible range was used because there are no systematic salinity measurements from the Atlantic Region." Estimated cost o f soil salinity was found to be in the same range as the estimate from the regression analysis presented in Table 5.33. A salinity level o f 4 dS/m is associated with a loss close to the mean econometric estimate inTable 5.33. Table 5.32: Simulated RelativeYields National average Parameter relative yield* Yield at current levels o f soil erosion andsalinity 0.82 Predictedyield ifNO very high andhigherosion 0.92 Predictedyield ifNO highandmoderatesalinity 0.90 Predictedyield ifNO erosion andsalinity (high-very high andmoderate-high) 1.oo * Arithmeticaverage ofthe departmentsinthe regressionanalysis. Table 5.33: EstimatedAnnual Cost of LandDegradation Estimated annual cost (billion pesos) Parameter Low High Soil erosion 805 965 Soil salinity 505 605 Total cost 1,310 1,570 '*Salinity measurements are available for the Cauca Valley, but the total losses are not very large because o f relatively low average levels. 104 5.79 The cost ofpasturedegradation is animportantissue that was not estimatedinthis reportbecauseof lack of data. However, the CORF'OICA study by Baquero Haeberlinand others (2003) includesan estimate ofC$58,000 perhectareperyear for suchdegradationinCaqueta. If25 to 50percentofpastureinColombia is experiencing a similar level of degradation, total annualcost at the national level would be C$600billion to C$1,200 billion. An amount of this magnitude might warrant further assessmentinother departments to gain abettersense ofthe scope andcost ofpasture degradationnationwide. NaturalDisasters 5.80 Colombia is annually afflicted by natural disasters such as floods, landslides, avalanches, and storms; severe earthquakes occur periodically. The total meanannual cost ofnatural disasters is estimated at C$1,750 billion, as presented inFigure5.15. Figure 5.15: EstimatedAnnual Costs of NaturalDisasters(billion pesos) 1200 1 I 1000 800 600 400 200 0 I AnnuallyOccurringDisasters MajorEarthquakes Table 5.34: Number of People and UnitsAffected by NaturalDisasters Impacts 2003 2002 2001 2000 1999 * Deaths 122 142 74 96 276 Injuredpersons 420 39 379 111 351 Missingpersons 18 52 28 15 60 Number ofpeopleaffected 436,000 343,000 205,000 468,000 1,214,000 Families affected 88,000 67,000 40,000 94,000 240,000 Houses destroyed 2,100 1,300 1,600 2,500 5,500 Housesdamaged 16,800 10,200 14,500 10,900 26,200 Roadsdamaged 31 83 66 135 375 Bridgesdamaged 8 13 14 61 123 Pedestrianoverpasseshridgesdamaged 10 22 20 57 126 Water supply systems affected 6 119 21 91 136 Sewagesystems affected 1 1 1 5 30 Health centers affected 6 8 8 11 7 Schools, educationcenters affected 45 65 64 76 89 Communitycenters affected 31 62 40 31 62 * Notincluding the Armenia earthquake. Source: Fromthe disaster database at Departmentfor Disaster Prevention andResponse, MinistryofInterior and Justice. 105 5.81 The Department for Disaster Prevention and Response at the Ministry o f Interior and Justice maintains a large database on disasters. Up to 1998, the database contains information on fatalities, number o f individuals and houses affected by disasters. From 1999 to 2003, the database also contains information on the number o f injured people and public buildings affected, and distinguishes between destroyed anddamaged houses. The number o f people andunits affected by natural disasters i s presented inTable 5.34, To facilitate a comparison from year to year, the table includes only disasters that occur more or less annually, and does not include the large Armenia earthquake in 1999. The impacts o f disasters were particularly high in 1999, mainly due to severefloods. 5.82 Table 5.35 provides average annual impacts for three periods over the past decade. There does not seemto be any detectable trend inimpacts over these periods. To test for any time trends a regression analysis was undertaken for total number o f people affected by disasters, but the time trend i s statistically insignificant. Table 5.35: Annual Average Impactsfor Three Periods Impacts 2000-03 1999-2003 1993-9 7 Deaths 109 142 196 Numberofpeopleaffected('000) 363 533 372 Housesaffected('000) 15 18 22 Note: Not including the Armenia earthquake. 5.83 Table 5.36 presents the distribution o f disaster impacts across types o f disasters. The distribution is based on data for the five most recent years (1999-2003). Earthquakes and landslides are causing the most deaths. Storms are among the leading causes o f damages to houses, but not in terms o f destruction o f houses. Floods and earthquakes are having the largest impact in terms o f total number o f people affected andhouses destroyed anddamaged. Table 5.36: PercentageofDisasterImpactsby Type of Disaster, 1999-2003 People Houses Event Killed Injured Affected Destroyed Damaged Landslides 18 6 3 6 5 Floods 8 3 71 20 35 Storms 0 5 7 5 25 Droughts 0 0 3 0 0 Fires, buildings 1 2 0 8 0 Fires, forest 0 0 1 0 0 Avalanches 3 1 1 4 2 Earthquakes 63 76 13 56 32 Contamination 0 4 0 0 0 Other 6 2 1 0 1 Total 100 100 100 100 100 Note: Includesthe Armenia earthquake. 5.84 Table 5.37 presents the total number o f people affected by natural disasters in each department, reflecting an annual average for 1997-2003. The Armenia earthquake is not includedinorder to provide a perspective on the geographic distribution o ffiequently or annually occurring disasters. 106 5.85 About 62 percent o f all people affected are concentrated inseven departments inthe northern part andnortheast Pacific part of Colombia, where only 29 percent ofthe country's population lives. Inthese departments, an average o f -4 percent o f the population is affected annually by disasters, in contrast to well below 1 percent in the rest o f the country. As much as 15 percent o f the population was affected annually inChoc6. Table 5.37: Number of PeopleAffected(annual average 1997-2003) People afected Percent of Percent of Department Number national total departmentpopulation Choc6 63,523 14 15 Bolivar 52,619 12 3 Cesar 42,494 10 4 Magdalena 36,393 8 3 Antioquia 29,03 1 7 1 Sucre 26,459 6 3 C6rdoba 20,289 5 2 Nariiio 19,563 4 1 Boyaca 14,327 3 1 Atlintico 13,830 3 1 Santander 13,135 3 1 Cauca 12,331 3 1 Valle 11,196 3 0 Tolima 8,823 2 1 Huila 7,974 2 1 Amazonas 7,711 2 10 Putumayo 7,194 2 2 Risaralda 6,743 2 1 Arauca 6,158 1 2 Meta 6,125 1 1 Guajira 4,820 1 1 Quindio 4,800 1 1 Norte de Santander 4,278 1 0 Caqueta 4,264 1 1 Cundinamarca 3,306 1 0 Caldas 3,237 1 0 Casanare 3,084 1 1 Guaviare 2,426 1 2 Guainia 2,324 1 6 Vichada 1,124 0 1 Vaupes 109 0 0 SanAndrks 19 0 0 All Colombia 439,709 100 1 Note: Doesnot include the Armenia earthquake. 107 Cost of NaturalDisasters 5.86 There are no systematic and comprehensive estimates o f the cost of damages from natural disasters, with the exception o f the Armenia earthquake in 1999. According to Economic Commission for Latin America and the Caribbean (Comisidn Econdmicapara Amdrica Latina y el Caribe, CEPAL), the earthquake inflicted a cost o f C$2,800 billion (US$1.8 billion at the 1999 exchange rate), o f which more than70percentwas housinghuildingdamages.83 5.87 Inthis report, the cost categories presented by CEPAL have been adapted andapplied to provide an order o f magnitude o fthe annual cost of natural disasters.84The cost of annually occurring disasters is based on annual averages for 1999-2003. This period was selected because more detailed and comprehensive data were available from the Department for Disaster Prevention and Response at the MinistryofInteriorandJustice. Table 5.38: EstimatedAnnual Cost of NaturalDisasters (except major earthquakes) Estimated annual cost (billionpesos) Impacts Low High Deaths 25 35 Injuredpersons 4 5 Missingpersons 6 10 Housesdestroyed 85 85 Housesdamaged 265 265 Losddamagedfurniture, equipment, andother losses per house 150 150 Roads, bridgesdamaged 180 360 Water supply andsewage systems affected 55 105 Healthcenters affected 55 110 Schools, education centers, communitycenters affected 60 120 Total cost 885 1,245 5.88 Total estimated annual cost of natural disasters i s presented inTable 5.38. The cost of frequently or annually occurring disasters is presented in Table 5.40. The largest cost is associated with damages to housing, infrastructure, andpublic buildings. A range in cost has been usedfor infrastructure and public buildingsdue to uncertainties o f exact cost o f damages. Table 5.39 presentsthe estimated annualizedcost of major earthquakes. The cost estimates are basedon the costs o fthe Armenia earthquake. The frequency of such an earthquake is highly uncertain. A 5- to 10-year frequency range was applied inthis report, and the total cost o f a major earthquake is annualized. The low estimate represents a frequency of 10 years, andthe highestimate a frequency of 5 years. Intotal, the annualcost of frequently occurringdisasters and major earthquakes is estimated at C$1,330 billionto C$2,175 billion. 5.89 Unit costs of disaster impacts are presented in Table 5.40. These estimates are derived from the cost estimates of the Armenia earthquake presented by DNP (Echeverry 2002), as discussed above. However, it should be recognizedthat there i s uncertainty about the accuracy o f applying these unit costs 83 A presentationbyJuanCarlos Echeverry(formerly at DNP) providesasummary ofthese estimates. 84 Figures havealso beenadjustedfor inflation to 2003. 108 Table5.39: EstimatedAnnualizedCost ofMajor Earthquakes Estimated annual cost (billion pesos) Impacts Low High Deaths 20 60 Injuredpersons 10 35 Missingpersons 12 33 Houses destroyed 70 140 Houses damaged 45 85 Publicbuildings damaged or destroyed 115 230 Lostldamagedfurniture, equipment, andother lossesperhouse 50 100 Other losses relatedto housingandbuildings 15 30 Roads, bridgesdamaged 10 20 Water supply and sewage systems affected 5 10 Healthcentersaffected 10 20 Schools, educationcenters, communitycenters affected 30 60 Energy sector 5 10 Commerce, industry, services 45 90 Miscellaneous 3 7 Total cost 445 930 to disasters such as floods, storms, and landslides. An improvement in the estimates would require a comprehensive assessment o fthe cost o f damages across Colombia. Perception onEnvironmentalPriorityProblems 5.90 To determine priority environmental concerns from the perspective of specific groups o f stakeholders and the population in general, a survey was administered in 2004 to a random sample representative of Colombian society (including more than 2,600 citizens from the public and private sectors, industry, academia, and civil society). The aim o f the survey was to gather data on priority environmental concerns in Colombia. The CompaAia Nacional de Consultoria (CNC) administered the survey door-to-door to a random sample of 616 citizens representing the general public. Inaddition, 2,024 individuals were interviewed, representing the following stakeholder groups: populations living in high- Table5.40: UnitCostsAppliedto FrequentlyOccurringDisasters Estimated unit cost in 2003 Impacts (million pesos) Destructionofhouses 33 Damagesto houses 17 Lostldamagedfurniture, equipment, andother losses per house 8 Roads,bridgesdamaged 1,990 Water supplyandsewage systems affected 1,300 Healthcenters affected 13,650 Schools, educationcenters, communitycenters affected 1,065 109 risk areas, central and local government officials, environmental agency officials, environmental NGOs, manufacturing industry executives, agricultural workers, livestock workers, academia, civil society, energy sector executives, water utility and water company officials, and executives o f transportation businesses. 5.91 Inthe survey, respondents were askedto rank the environmental problems they considered most serious for themselves and their family, in addition to how well the government at both the national and local levels was addressing these problems. The environmental problems ranked included air quality both inside and outside the home, water quality in the home, trash collection, sanitation services, natural disasters, lack o f green areas and parks surrounding the home, neighborhood road quality, traffic accidents, and landdegradation. Those surveyed were also asked to rankbroader environmentalproblems affecting their community and the country, such as air pollution, loss o f global resources (for example, biodiversity loss and global warming), and deforestation. Environmental health priorities were also examined by asking respondents if there were children in their households, what type o f illnesses the children suffered most from, their hygiene habits, what type o f cooking fuel was usedinthe home, iftheir homes were ventilated during cooking, andifthe water usedfor cooking was treated before consumption. To evaluate differences in priorities among the country's income groups, the survey also asked respondents to identifytheir income-level range. 5.92 The survey results reflect the Colombian population's great concern regarding the country's environmental problems, which affect the poor most directly. The population perceived air pollution (79 percent) as the most serious environmental concern for the country. However, as shown inTable 5.41, the results revealed significant differences among income groups: whereas low-income groups identify air pollution, noise pollution, and vulnerability to natural disasters as major problems, upper-income groups perceive the loss o f global environmental resources andinappropriate land use inurban areas as principal problems. Poor income groups tended to link national environmental concerns to their immediate surroundings, indicating a direct relationship between poverty andenvironmental degradation. Table 5.41: EnvironmentalProblemsConcerns Perceived as major concern Environmentalproblem PAof respondents) Low-income groups Air pollution 74 Natural disasters 64 Noisepollution 64 High-incomegroups Poor managementofglobalresources 78 Biodiversity loss 75 Poor landmanagement 64 5.93 Withrespect to the environmentalproblems perceivedas affectingthe respondents personally, the following were viewed as the most serious: lack o f parks and public green spac,es, poor ambient air quality, noise pollution, insufficient trash collection, neighborhood safety, and poor sanitation services. Among the general population, higher-income groups considered safety and lack o f public green spaces as the greatest priorities, whereas middle-income groups perceived safety, ambient air quality, noise pollution, and lack o f green spaces and parks among the greatest environmental priorities for themselves and their families. Lower-income groups indicated the same environmental concerns as middle-income groups with one exception-they also noted indoor air pollutionas a personalenvironmental concern. 110 5.94 National environmentalpriorities also varied among stakeholder groups. Inaddition to being the top priority for the general population, air pollution was also a key environmental concern among four stakeholder groups, including the manufacturing industry, energy firms, transportation f m s , and trade agencies. For three o f the stakeholder groups presented below, poor management o f global environmental resources anddeforestation were consistent priorities. 5.95 Finally, respondents were asked to rank the following environmental issues in order o f importance for both the country and their household (a) environmental health, (b) global environmental problems, and (c) environmental quality o f waters, air, and other natural resources. Among these issues, 53 percent o f the general populationperceived environmentalhealthto be the top priority for the country, with global environmental problems a distant second (22 percent), environmental quality third (18 percent), and biodiversity conservation fourth (7 percent). However, Figures 5.16 and 5.17 indicate that these priorities varied significantly between the lowest and highest income segments o f the population. Environmental health was a key concern for low-income segments; particularly in relation to these respondents' own households. Figure 5.16: Top Priorities for Colombia According to Lowest and Highest Income Groups Lowest Income Group rn Highest Income Group GlobalRoblem Env. Quality Figure 5.17: Top Priorities for HouseholdsAccording to Lowest and Highest Income Groups r I Env. Health Global Roblem h v . Quality 111 5.96 Survey responses regarding household conditions also reflected environmental health as an important priority for poorer families, although only 51 percent o f those in the lowest income group reportedwashing their handsat critical times (for example, before preparingand eating dinner) compared to 100 percent in the highest income group, making the poorer segments more vulnerable to hygiene- related illnesses. Similarly, only the lowest income groups (17 percent o f those surveyed in this low- income segment) relied on traditional fuels, such as fuelwood, for cooking and heating in their homes, whereas the higher income groups used natural gas (51 percent) andpropane (49 percent). Since burning traditional fuels produces large amounts o f smoke andother air pollutants inconfined spaces o f the home, this poses a dangerous health risk to this segment of the population. Also consistent with these environmental health responses was the survey finding that only the poorest income segments, with children under age 5, reportedthat their children were frequently sick. Conclusions 5.97 The mean estimated annual costs o f environmental damage for five categories: (a) water, sanitation, and hygiene, (b) urban air pollution, (c) indoor air pollution, (d) agricultural landdegradation, and (e) natural disasters, amounts to more than 3.7 percent o f GDP per year. The highest-cost categories are insufficient water supply and outdoor and indoor pollution, followed by natural disasters and agricultural landdegradation. 5.98 Inurbanareas, the cost o furbanair pollution is significantly higher thanfor water, sanitation, and hygiene in contrast to the national estimate. In rural areas the cost o f land degradation (not including pasture) is estimated at more than twice as highas the cost o f insufficient water, sanitation, andhygiene. Moreover, in contrast to the national estimate, the cost o f indoor air pollution is almost as high as for water, sanitation, andhygiene. 5.99 Results from a survey o f priority environmental problems reflect that air pollution (79 percent) is perceived as the most serious environmental concern for the country. Survey results revealed significant differences among income groups: whereas low-income groups identify air pollution, noise pollution, and vulnerability to natural disasters as major problems, upper-income groups perceive the loss o f global environmental resources and inappropriate land use in urban areas as principal problems. Poor income groups tended to linknational environmental concerns to their immediate surroundings, indicating a direct relationship betweenpoverty andenvironmental degradation. 112 Part 2 Reducingthe Burdenof Diseasethrough Better EnvironmentalManagement CONTENTS Part 2: Reducingthe Burdenof Diseasethrough Better EnvironmentalManagement . Chapter 6 WaterborneDiseasesRemainWidespread . ......................................................... 119 Background.......................................................................................................................... .............................................. 119 Analysis ofPolicy Implementation..................................................................................... Assessment ofPolicy Design. Efficiency. andEffectiveness 120 Analysis of Alternative Interventions.................................................................................. 127 Conclusions andRecommendations.................................................................................... 128 145 Chapter7 ImprovingAir Quality 147 Introduction.......................................................................................................................... . ........................................................................................... Air Quality Management..................................................................................................... 147 149 Performanceofthe Air Quality ManagementSystem .................................................................. ......................................................... 157 PotentialInterventionsto Control Air Pollution 166 Conclusions andRecommendations .................................................................................... 179 Chapter8 A SilentKiller: IndoorAir Pollution . ................................................................... 185 Introduction.......................................................................................................................... 185 Acute RespiratoryIllness inColombia ................................................................................. 187 HealthEffects ofIndoor Air Pollution ................................................................................ 187 Stove Efficiency ................................................................................................................... 193 FuelwoodConsumption 194 Cost of Interventions ............................................................................................................ ....................................................................................................... 195 Benefit-Cost Analysis 197 Sensitivity Analysis ............................................................................................................. ......................................................................................................... 200 Effectivenessof IndoorAir Pollution Control Programs .................................................... 201 Conclusions andRecommendations .................................................................................... 203 Chapter9 TheEnvironmentalCostofAcceleratedUrbanGrowth . ................................... 205 Introduction .......................................................................................................................... 205 UrbanGrowth andEnvironmentinColombia ..................................................................... 206 HousingPolicy-Main EnvironmentalDifficulties andthe Government's Response .......208 Conclusions andRecommendations-Housing andUrbanDevelopment 213 Waste Management ............................................................................................................. .......................... 216 BackgroundandBrief History ............................................................................................. 217 IntegratedWaste ManagementGuidelines 219 CleanProduction Agreements ............................................................................................. .......................................................................... 220 National DevelopmentPlan2002-2006 .............................................................................. 220 Effectivenessofthe Waste ManagementSystem ...................................................................... ................................................................ 221 Hazardous andMedicalWasteManagement 226 CleanProduction Agreements ............................................................................................. 227 Other SelectedIssuesRelatedto Waste Management Conclusions andRecommendations-Waste ManagementandUrbanDevelopment .................................................................228 229 115 Chapter 10 Living with NaturalDisasters . ............................................................................. 233 Introduction .......................................................................................................................... 233 Natural Disasters inColombia ............................................................................................. 233 Occurrence andImpacts ofNaturalDisasters 236 Effectiveness ofPolicy Design .......................................................................................... ................................. i................................... 1.237 Assessment ofNatural Disaster Policies ............................................................................. 242 Evaluation ofFundingRequirements and Arrangements .................................................... 246 Evaluation ofDisaster Planning .......................................................................................... 248 EvaluationofLandUse Plans and Construction Standards ................................................ 251 Challenges to Disaster Prevention ....................................................................................... 251 Parallels between SNPAD and SINA 252 Conclusions andRecommendations .................................................................................... .................................................................................. 253 Tables 6.1:DiarrheainChildrenunderAge 5 ............................................................................................... 120 6.2: Summary ofMeta-analysisby FewtrellandColford (2004) ...................................................... 122 6.3: Tariff Increasesfor Failureto Achieve Water Quality Targets ................................................... 126 6.4: UrbanSewer System Coverage, 2001 128 6.5: SelectedExposureScenarios 6.6: RatesofReductioninDiarrhealIllness Used inPruss andOthers(2002).................................. ....................................................................................................... ......................................................................................... 129 130 6.7: ExposureScenario Application to Colombia .............................................................................. 131 6.8: Water SupplyandSanitationinColombia(% of Households) 132 6.10: RuralWater Supply andSanitationinColombiaPAof ruralpopulation)................................ 6.9: Scenario Allocation Rules ........................................................................................................... ................................................... 133 133 6.11: UrbanWater Supply andSanitationinColombia(% of urbanpopulation) 133 6.12: EstimatedAnnual CasesofDiarrhealIllness inColombiain2000 .......................................... ............................. 134 6.13: EstimatedAnnual Casesof DiarrhealIllness perPersoninRuralColombia ................................ ............................ 134 6.14: Benefits andCosts ofImprovedRuralWater and Sanitation(Low Case) 6.15:Benefits andCosts ofImprovedRuralWater andSanitation(High Case) 135 6.16: HouseholdTime Savingsfrom ImprovedWater Supply .......................................................... ................:...............135 6.17: Key ParametersandOutcomes inaBenefit-CostAnalysis ofHandWashing......................... 136 138 6.18: Reviewof Costs andEffectivenessofHand-washingPrograms 6.19: Benefits andCosts ofaNationalHand-washingPrograminColombia................................... .............................................. 138 140 6.20: Benefits andCosts ofaNationalHand-washingProgram(behavioralchange lastingtwo years) ................................................................................................................................................... 142 6.21: Benefits andCosts ofaDrinkingWater Disinfection Program ................................................ 143 6.22: Benefits ofInterventionAlternativesinColombia(Morbidity 6.23: Benefits ofInterventionsinColombia(Child Mortality) .......................................................... ................................................. 145 6.24: Summary ofRecommendationsfor ReducingWaterborneDiseasesinColombia 146 7.1:EstimatedHealthImpact ofUrbanAir Pollution inColombia ................................................... ...................145 148 7.2: DevelopmentofNationalNormsonAir PollutantEmissions, 1995-2002 150 7.3: Air Quality Standards:Decree 02 of 1982 .................................................................................. ................................ 152 7.4: Standardsfor Air Quality inBogotA, DAMA Resolution 1208of 2003 153 7.5: Regulationof SulfurContentinGasolineandDieselFuels ........................................................ ..................................... 155 7.6:Emissions Reductionswith Mass TransportationSystems, 2004-20 156 7.7: Annual Ambient PMlo LevelsinSelectedCities (pg/m3) ........................................................... .......................................... 160 7.8: VAT Exemptionsfor EnvironmentalInvestments, 1997-2003 .................................................. 161 7.9: PMlo Concentrationson "Day Without My Car" versus DailyAverage 162 7.10: EmissionInspectionsof Motor Vehicles inCali, 1997-2003 ................................................... .................................... 163 116 7.11:Revenuesfrom Vehicle InspectionPrograminCali. 1997-2003 163 7.12: Vehicles Convertedto CNG as ofJuly 2004 ............................................................................. ............................................. 165 7.13: Hectaresof Sugarcane inCVC with GreenCuts, 1997-2003 167 7.14: EstimatedPMlo EmissionsinBogotb, 2002 (tondyear ............................................................. ................................................... 169 7.15: EmissionSourceRatiosofPM2.5 andPMlo 169 7.16: Nitrates and Sulfates inPM2 ...................................................................................................... ...........................................................................#.. 170 7.17: ModelResults for Annual EmissionInventory inBogotb ........................................................ 170 7.18: EstimatedCost of Damage Causedby PMlo inBogota 7.19: Estimatesof Vehicles andFuelConsumptioninBogotb.......................................................... ............................................................ 171 174 7.20: PMlo Emissions Factors ............................................................................................................ 7.21: EstimatedPMloDamageCost per Vehicle inBogoth............................................................... 175 7.22: Benefits of Diesel Vehicle RetrofitTechnology ....................................................................... 176 7.23: Benefitsof Conversion to CNG 7.24: Benefits of Converting to Low-sulfur Diesel............................................................................ ................................................................................. / ..............177 178 179 7.25: Summary of Recommendationsfor ImprovingUrbanAir Quality inColombia 8:1:Acute Respiratory Illness (AM) PrevalenceRatesinChildren .................................................. ...................... 182 187 8.2: Child Health, A N Treatment, andMaternal Education .............................................................. 188 8.3: Relative Risks for Strong andModerateHealthOutcomes 189 8.4: Fuels, Stove Technology, andPollutionScenario ....................................................................... ......................................................... 189 8.5: Base Case Estimation of Scenario-specific Relative Risks ......................................................... 190 8.6: Particulate Matter (PM) Concentrationsfrom Cooking Stove 191 8.7: Odds Ratios for ARI .................................................................................................................... ..................................................... 192 8.8: Estimated Annual HouseholdConsumptionof Fuelwood 195 8.9: Annual Recurrent Cost of CompleteFuelSubstitution ............................................................... .......................................................... 196 8.10: Baseline Parametersfor Estimating the Cost ofFuel Substitution ............................................ 196 8.11: Cost Estimatesof ImprovedWood Stoves andLPG Stoves 196 8.12: Interventions .............................................................................................................................. ..................................................... 197 8.13: EstimatedAnnual Benefits of Interventions 198 8.14: EstimatedAnnual Costs of Interventions .................................................................................. .............................................................................. 199 8.15: Benefit-cost Ratios of Interventions 200 8.16: HouseholdsUsingSolidFuels .................................................................................................. ......................................................................................... 201 8.17: ChangeinShare ofHouseholdsUsingSolidFuels ................................................................... 8.18: Summary of Recommendationsfor AddressingIndoor Air PollutioninColombia 203 9.1: Total andPer Capita Waste Generated (1998-2001) .................................................................. .................202 221 9.2:Population Density andWaste GenerationinColombia (1988-2001) 222 9.3:Composition of Waste .................................................................................................................. ........................................ 223 9.4:Final Disposal ofWastes .............................................................................................................. 224 9.5:Solid Wastes Recycled, by Material ................................................................................................. ............................................................................................. 224 9.6: Disposal of Solid Waste inCAR 225 9.7:Characteristics of Waste ProgramsinSelectedAreas .................................................................. 226 9.8:Summary of Recommendationsfor AddressingProblems Associatedwith Accelerated Urban Growth ....................................................................................................................................... 231 10.1: Disaster Exposure Indicators inCentraland South America, 1970-1999 ................................ 234 10.2: Percentage of Disaster Impactsby Type ofDisaster 1999-2003 (%) 236 10.3: Impacts of NaturalDisasters 1999-2003 .................................................................................. ....................................... 237 10.4: Annual Average Impacts ofNatura1Disasters, 1999-2003 ...................................................... 237 10.5: Numberof PeopleAffectedby Landslides, Floods, and Storms in2003 ................................. 10.6: ProjectedEconomic Loss from DisastersandGovernment FinancingNeeds (million US%) 245 10.7: ExpectedAnnualized LossDueto 20-year to 100-year ........................................................... ...238 246 10.8: DisasterFundingby Source andYear (million 2004 pesos) 247 10.9: Initial, Additional, andTotalBudgetAllocation to FNC .......................................................... ..................................................... 248 117 10.10:Implementation of PLECs 1998-2004 .................................................................................... 10.11:Implementation ofPLECsby CAR andMunicipality(2002) ................................................. 249 10.12:Summary ofRecommendationsfor StrengtheningPrevention ofNaturalDisasters ..............250 256 Figures 6.2: Child Mortality andWater Network ........................................................................................... 6.1:Proportion ofDALYsAttributable to UnsafeWater .................................................................. 120 6.3: Child Mortality andUrbanization, by Department...................................................................... 123 6.4: Benefit-Cost Ratiosof RuralWater andSanitation(Low Case)................................................. 123 6.5: EstimatedBenefit-Cost Ratios for HandWashing, byDegree ofProgramEffectiveness..........136 6.6:Benefit-Cost Ratios over Time for HandWashing (20 PercentEffectivenessTarget)...............141 141 6.7:Benefit-Cost Ratiosfor DrinkingWater DisinfectionProgram, by Degree of Program Effectiveness .............................................................................................................................. 144 6.8:Benefit-Cost Ratios over Time for DrinkingWater DisinfectionProgram (20 Percent EffectivenessTarget .................................................................................................................. 144 7.1:MeanAnnual Concentration ofPMlo inCities ........................................................................... 148 7.2: AnnualHealthCost ofUrbanAir Pollution(billion pesos) ........................................................ 168 7.3: Annual Cost of Damageby Emission Source(low cost estimate) .............................................. 172 7.4: Annual Cost ofDamageby Emission Source (highcost estimate) 173 7.5:DamageCostper Ton ofPMlo(low cost estimate) ..................................................................... ............................................. 173 7.6:DamageCostperTon of PMlo(highcost estimate) .................................................................... 174 8.1:Annual Costs of IndoorAir Pollution(billion pesos) ................................................................. 186 8.2:Proportion ofDALYsAttributable to Indoor Smoke from SolidFuels ...................................... 186 8.3: ARI PrevalenceinChildrenbyMother's Education Level 188 8.4: Stove EfficiencyandCapitalCost ............................................................................................... ......................................................... 193 8.5: Stove Efficiencyfroma Study inColombia ................................................................................ 194 8.6: SolidFuels as MainCookingFuelinLatinAmerica andCaribbean .......................................... 202 8.7: SolidFuels as MainCookingFuelinRuralLatinAmerica andthe Caribbean 202 9.1: Annual GapbetweenFormalHousing ........................................................................................ .......................... 208 9.2:Solid Waste GenerationinLatinAmerican Cities 222 9.3:Composition of Waste ................................................................................................................. ....................................................................... 223 118 CHAPTER6 WATERBORNE DISEASESREMAINWIDESPREAD Waterborne bacterial diseases pose one of the highest costs of environmental degradation to Colombia, particularly with respect to child morbidity and mortality. Diarrhea, which accounts for approximately 7.3percent of child mortality, is the most common and widespreadwaterborne disease and most prevalent in rural zones populated by thepoorest segments of thepopulation. Although Colombia has promoted increased water supply coverage over thepast 10years, with investments in water supply and sewerage valued at about 1percent of GDP, these efforts only provide apartial response to reducing the incidence of disease. A recent meta-analysis of water, sanitation, and hygiene interventions highlights the importance of incorporating hygiene interventions-which can reduce diarrheal illness by up to 45 percent-into programs for reducing waterborne diseases. In order to address regulatory gaps pertaining to environmental impact assessments and wastewater discharge tarifs, whichpresent constraints to theprovision of water supply and sanitation, it would be advisable to amend the country's regulatory j?amework in order topromoteprivate sector investment. Background 6.1 One o f the largest costs o f environmental degradation in Colombia i s associated with morbidity and mortality from waterborne bacterial disease^.^' Waterborne bacteria are transmitted by means o f contaminated surface water sources and large, poorly functioning water distribution systems, resulting in a range o f syndromes including cholera, typhoid fever, dysentery, andchronic diarrhea (lasting more than two weeks). While diarrheal illness is generally not as serious as some other waterborne illnesses, it is more common andaffects a larger number o f people.86 6.2 InColombia, approximately 7.3 percent ofchildmortality is attributed to diarrheal illness (1,450 to 1,820 deaths per year) (DANE).87Two-week diarrheal prevalence in children under age 5 is 2.9 percent. Approximately 90 percent o f diarrheal cases andhospitalizations can be attributed to water, sanitation, and hygiene. Diarrheal illness is most prevalent in rural zones, populated by the poorest segments o f the population (for example, those living inthe Departments o fChoc6, Cauca, Valle, andNariiio). 8.5Bjom Larsen and Ernest0 Shchez-Triana authored this chapter, which draws heavily from background documentspreparedfor this studyby Larsen(2005) and Enriquez (2004). 86 Diarrhea is a symptom o f infection causedby a host o fbacterial, viral, andparasitic organisms, most of which can be spreadby contaminated water. It is more common when there i s a shortage o f clean water for drinking, cooking, and cleaning, and basic hygiene is important in prevention. Diarrhea can also spread from person to person, aggravated by poor personal hygiene. Food is another major cause o f diarrhea when it i s prepared or stored in unhygienic conditions. Water can contaminate food during irrigation, and fish and seafoodfrom pollutedwater may also contribute to the disease. 87 The lower bound for diarrheal mortality (1,450 deaths) is basedon 7.3 percent o f official deathrecords, while the upper bound (1,820 deaths) is basedon 7.3 percent o f total estimated child mortality publishedby DANE. Official death records represent a significant understatement o f actual deaths in most developing countries due to underreporting byhouseholds.DANEtherefore publishes estimatedmortality inaddition to official records. 119 Table6.1: DiarrheainChildrenunderAge 5 Percent of children under age 5 with Department diarrhea in thepreceding two weeks Guajira, Cesar, Magdalena 11.9 Althntico, Bolivar Norte 11.6 Bolivar, Sucre, C6rdoba 11.3 Santanderes 15.2 Boyaca, Cundinamarca, Meta 14.9 Antioquia 16.2 Medellin 15.8 Caldas, Risaraldo, Quindio 17.6 Tolima, Huila, Caqueta 13.5 Cauca, Nariiro 18.8 Bogoth 10.9 Valle del Cauca 12.5 Choc6 22.0 Cali 10.8 Source: Colombia Demographic andHealthSurvey (DHS) 2000. 6.3 Diarrheal morbidity is more difficult to quantify thandiarrhealmortality. Many diarrhea cases are not treated or do not require treatment at health facilities, and therefore are not recorded. In addition, cases treated by private doctors or clinics are usually not reported to public health authorities. Therefore, household surveys often provide the most reliable indicator o f total cases o f diarrheal illness. Most household surveys, however, only include information on diarrheal illness in children, and reflect diarrheal prevalence at the time o f the survey. Because diarrhealprevalence often varies across seasons o f the year, extrapolating survey data to create an annual average will result in either an over- or underestimate o ftotal annual cases. 6.4 From a global perspective, lack o f access to safe water continues to exert a significant burden on the health o fmillions o fpeople worldwide, particularly vulnerable groups. According to the World Health Organization (WHO) (2002), approximately 3.1 percent o f deaths (1.7 million) and 3.7 percent o f Disability Adjusted Life Years (DALYS)'~(54.2 million) worldwide are attributable to unsafe water, sanitation, and hygiene. Fully 99.8 percent o f deaths associated with this risk factor are in developing countries, and 90 percent are deaths o f children. In Colombia, the proportion o f DALYs attributable to unsafe water ranges between 1 percent and 1.9 percent, similar to that o f the rest o f Latin America, with the exception o f countries such as Bolivia, Ecuador, Guatemala, -Peru, and Nicaragua where the proportion is higher (Figure 6.1). Assessment of Policy Design, Efficiency, and Effectiveness 6.5 One o f the interventions to prevent waterborne diseases that the Government o f Colombia has fostered since the early 1990s aims at increasing access to drinking water and sanitation. Although the current program to increase water and sanitation coverage will help reduce the incidence o f waterborne diseases in Colombia and benefit the poorest segments within the country, it provides only a partial responseto the problem o f waterborne disease. ''The ~ DALY i s a standard metric of the burden of disease that combines life years lost as a result of illness and disability, with one DALY beingequalto the loss of one healthylife year (Murray andothers 1996). 120 Figure6.1: ProportionofDALYsAttributableto UnsafeWater _. k e e Q t c b Source: WHO (2002). 6.6 According to a meta-analysis o f water, sanitation, andhygiene interventions on diarrheal illness, improvements inwater supply and sanitation provide a 30 percent expected reduction indiarrheal disease (Fewtrell and Colford 2004). In addition, this analysis indicates that while multiple interventions consisting o f water supply, sanitation provision, and hygiene education reduce diarrheal illness, they are not more effective than individual interventions (Table 6.2). The reasons for this are not clear. Furthermore, these results highlightthe importance o f determining which package o f measures combining all the main intervention areas will maximize health benefits to each individual community. They also highlight the importance o f incorporating hygiene interventions in programs aimed at reducing waterborne diseases. Thus, for a strategy to comprehensively target waterborne diseases, it should support hygiene improvements, which significantly contribute to reducing diarrheal disease, as shown below. 6.7 The main results o f the 2004 study by Fewtrelland Colford (2004) are presented inTable 6.2 for developing countries. The relative risk ratio (RR) expresses the risk o f diarrheal illness occurring as a health outcome in an intervention situation in relation to a nonintervention situation. The percentage reduction in diarrheal illness from intervention i s therefore 1.0-RR. The relative risk ratio for handwashing intervention in Table 6.2 is very similar to the results from other related studies (Curtis and Cairncross 2003; Esrey andothers 1991). 6.8 The most effective hygiene intervention is handwashing after defecation, before preparing meals, andbefore eating. Improvedsanitationrefers to facilities for safe andhygienic removalo f excreta, such as flush toilets, pour-flush latrines, ventilated improved pit latrines (VIP), and simple pit latrines. Unimproved sanitation refers to open pit latrines, public latrines, service or bucket latrines, and the absence o f any facilities. Improved water supply refers to house connection, standpipes, boreholes, protected wells or springs, and collected rainwater. Unimprovedwater supply includes unprotected wells or springs, open-surface water and rivers, and water provided by vendor or tanker trucks. In terms o f water quality improvement, the studies reviewed by Fewtrell and Colford (2004) that have assessed 121 reduction in diarrheal illness from source water treatment are not conclusive. The pooled study results suggest a mean reduction in diarrheal incidence o f 10 percent, but with no statistical significance. In contrast, point-of-use drinkingwater treatment (that is, householddrinkingwater treatment) appears very effective in reducing diarrheal illness. Point-of-use treatment refers to nonchemical (for example, boiling o f water) and chemical treatment (for example, chlorination) and appears to be most effective in rural areas. Water Supply and SanitationPrograms 6.9 Child mortality is clearly lower in departments with high water network coverage, high literacy rates, andhighurbanpopulation share. Figure 6.1 presents child mortality rates inrelation to water supply network coverage rates by department. 6.10 Since the main actions undertaken by the Government o f Colombia to prevent waterborne diseases are aimed at increasing access to drinking water and sanitation, the remainder o f this section discusses the water supply and sanitation program that the government is currently implementing. Rural water supply and sewerage coverage is especially poor (52 percent and 15 percent respectively, when restricting the definition o f coverage to householdwater and sewerage connections only), and at historic levels o f effort in service expansion, universal access goals (taking into account demographic growth) would not be reached for another 30 years (World Bank 2004). Figure 6.2 shows a correlation between child mortality andurbanpopulation share by department. 6.11 The government estimates, in addition to current investments in water supply and sanitation valued at 1 percent o f GDP, that US$1.2 billion is needed to meet the regional and urban-rural service coverage Millennium Development Goals (MDGs) over the next five years, and a further estimated US$1.O billion to address investments in maintenance and rehabilitation o f the networks, and expansion o f sewerage systems and wastewater treatment. Affordability issues and deficiencies in the design and functionality o f the current system o f fiscal transfers from the national government to municipalities make such a challenge daunting. Although recent reforms in allocation o f fiscal transfers to support the sector through Law 715 would theoretically ensure sector financial sustainability in the medium term, the current political andsocial climate andthe relatively recent nature o f these reforms meanthat the benefits o fthese changes will take some time to materialize. Table 6.2: Summary ofMeta-analysisbyFewtrelland Colford(2004) Intervention Relative Risk (RR) Confidence Interval (95%) Hygiene (handwashing) 0.556 0.334-0.925 Sanitation 0.678 0.529-0.868 Water supply 0.749 0.618-0.907 Water quality (source) 0.891 0.418-1.899 Water quality (point o fuse, rural) 0.534 0.392-0.727 Water quality (point of use, urban) 0.771 0.725-0.819 Water quality (point o fuse, chemical) 0.605 0.443-0.828 Water quality (point o f use, nonchemical) 0.534 0.379-0.752 Source: Summarized from Table 22 inFewtrell and Colford (2004). 122 6.12 Since 2001, the government has been implementing a Water Supply and Sanitation Reform program whose objectives include expanding the coverage o fwater andsewerageservices inparticipating municipalities, and facilitating the access o f populations in low-income areas o f participating municipalities to water and sewerage services.89The program attempts to overcome service deficiencies, characterized by insufficient potable water and sanitation coverage, rationing and intermittent water Figure6.2: ChildMortality and Water Network Coverage, by Department 100% e 90% f 0 ?I 70% 3 50% L i 'i; 10%- * : s Figure 6.3: Child Mortality and Urbanization, by Department f0 50% - A p" 40% - a -+ 30% - a 20% - e 10% 0% 0 20 40 60 80 100 Child (u-5) Mortality rate (2002) Source: Basedon data from DANE. 89This program hasbeenfinanced partially with proceeds from World Bank Loan 7077-CO. 123 supply, noncompliance with water quality standards by most utilities, and inadequate sewerage facilities in poor areas. In rural areas, historic rates of coverage expansion are extremely low compared to requirements to meet universal access. To make this target achievable within the 2010-20 window, the average annual coverage expansion rate in rural areas would need to increase by 50 percent for rural water and 100percent for sanitation. 6.13 To meet urgent investment needs and ensure achievement o f the MDGs, the government is aiming to consolidate the reforms undertaken to date andto ensure financial sustainability inthe medium term. The government's medium-term strategy to improve access andthe quality o f services has three key elements: 0 A maior investment uromam with clear and transuarent subsidies. In accordance with its 2002- 2006 National Development Plan, the government has identified a medium-term investment program to expandcoverage andimprove quality o f service inurban andrural areas. 0 A deeuened and broadened auuroach to imuroving utilitv uerformance. Private sector participation (PSP) remains at the core o f the government's approach inlarge andmedium-sized urban centers. The strategy also includes improvements in the financial and technical performance o f publicly run utilities in areas where PSP is not likely to be adopted in the short term. 0 Clear and transuarent "rules o f the game" for investment. The development o f a harmonized and publicly disseminated set o f procedures for the medium-term program is essential to mitigate the unstable regulatory frameworks becauselegal uncertainties often make private investors reluctant to enter into business ventures. Constraints to Water Supply and Sanitation Posed by the Environmental Regulatory Framework 6.14 Despite Colombia's efforts since the late 1960s to develop a consistent environmental regulatory framework, regulatory gaps abound. The existing environmental regulatory and legal frameworks do not provide sufficient comfort to potential private investors, and constitute an obstacle to the efforts to consolidate reforms in the water supply and sanitation sector. Currently, three main regulations pose serious obstacles for water supply and sanitation coverage expansion: (a) the Environmental Impact Assessment (EIA) requirements included in the environmental licenses system; (b) the effluent charge system known as the tasas retributivas; and (c) the wastewater discharge standards regulations established inDecree 1594/83 (World Bank2001). 6.15 Law 99 o f 1993 established the EIA system as a requisite for infrastructure works, establishment of industries, and the development o f any economic activity with potential significant environmental impacts. This law has been further developed in Presidential Decree 1220/05. The elaboration o f an EIA was one o f the requirements for the request o f an environmental license, and EIA regulations became a hurdle for water supply and sanitation projects and added little value to the environmental planningand management processes. According to the World Bank (2001), Libhaber and Foster (2003), and Challa (2003), the main problems with EL4regulations include: 0 Lack o f a screening procedureg0meant that an EL4 was needed for any project, regardless o f the intensity and magnitude o f its potential impacts, its location, the sensitivity o f the surrounding area, or public opinion regarding the project. Screening refers to the procedureusedto define whether the potential environmentalimpacts of the projectunder considerationare significant and thus trigger the preparationand define the scope of an EIA (Siinchez-Triana and Morillo, 1998). 124 0 Absence o f standards or guidelines resulted in discretionary application o f requirements for the preparation and evaluation o f environmentalstudies. 0 Responsibility for the elaboration o f the EIA fell on the project's proponent, generating conflicts o f interests. 0 The need for vast numbers o f EIA coupled with an absence o f primary environmental data resulted in"mass" productiono f EIAso fpoor quality andlittle value. 0 Limited public participation and lack o fprovisions to encourage it. 0 Absence o fregulations that delineated the procedures for public participation inthe EIAprocess. 0 Environmental agencies took advantage o f these deficiencies to exercise a seemingly boundless authority, which excludedthe public from participating inthe EIA decision-makingprocess. 6.16 In fact, environmental licenses often became "pro forma regulations" tailored and applied arbitrarily by the environmental agencies to projects. In certain instances, environmental agencies imposed obligations, standards, and compensation schemes-f their choice-with which the projects were required to comply. Such agreements were completely arbitrary. This highly discretionary application o f procedures generated legal uncertainty, because project proponents could not adequately evaluate the resources and time required to comply with the environmental licensing requirements (Challa, 2003; Libhaber andFoster 2003). WaterPollution Charges 6.17 Water pollution charges have beenusedinColombia at least since the late 1970s, when they were introduced inthe Code o fNaturalResources to control water pollution andwere established by the Cauca Valley Corporation. Law 99 o f 1993 updated the provisions for the use o f similar charges that were developed by Decree 901 o f 1997, Decree 3100 o f 2003, and Resolution 372 o f 1998. Application and enforcement o f environmental regulations are the responsibility o f Autonomous Regional Corporations (Corporaciones Autdnomas Regionales, CARs). Thus, based on the methodology defined by the aforementioned decrees andresolution, CARs were requiredto: 0 Update their discharge registries and define a baseline for discharges o f two parameters: biochemical oxygen demand (BOD) andtotal suspended solids (TSS); 0 Negotiate with stakeholders a five-year discharge reduction goal for each stretch o f watershed; 0 Charge a fee for every kilogram of the selected parameters that registered point sources discharged into superficial waters within the legal standards; and 0 Increase the fee annually untilthe reduction goal was reached. 6.18 According to the World Bank (2001), Libhaber and Foster (2003), Challa (2003), and Enriquez (2004), the water effluent charge design, as described above, posed serious obstacles to private sector participation in water supply and sanitation, principally due to the provision for revising environmental goals semiannually. The implication o f this scheme was that water utilities had no way o f knowing how the charge would ultimately affect their finances. Financing and developing wastewater treatment plants and sewer networks in Colombia i s an admittedly difficult task. Considerable evidence suggests that the design and introduction o f discharge fees may have aggravated the situation. A study conductedby CSU (2004) reported that municipalities are currently reluctant to develop treatment plants or to assume ownership o f existing plants because the discharge fees associated with such plants would make their operation nonremunerative. According to this report, "The fee structure for wastewater permits, while meant to be an incentive to provide treatment, has actually created a disincentive to construct treatment facilities or to apply for a permit. ... [Tlhe increase in fees every six months ...has resulted in many municipalities incurring fee debts that are so high, they have no hope o f paying them let alone financing water treatment facilities." 125 6.19 Unfortunately, a similar rationale applies to municipalities' incentives to build new sewer lines. For Colombia's many municipalities without adequate wastewater treatment facilities, building sewer lines that connect new pollution sources to the system increases the system's total pollution load and, therefore, increases total fees charged to the municipality. Thus, the discharge fees act as a financial disincentive to investinnew sewer networks (Blackman andMorgenstern2005). 6.20 The reasons for the inability o f many municipalsewage authorities to pay discharge fees or invest in treatment plants that would reduce their discharges have generated widely publicized controversies. The professed inability o f the municipalities to reduce their waste loads prevents dischargers in water basins from meeting five-year total pollution load reduction targets established by boards o f directors o f the CARS, in accordance with Decree 901 o f 1997 and Decree 3100 o f 2003. The design o f the pollution charge system has led to continual increases in fee rates. Table 6.3 shows the dramatic increase in fee rates mandated by regulations for a water basin that fails to comply with its targets for reducing water pollution loads. Table 6.3: Tariff Increases for Failure to Achieve Water Quality Targets Discharge tariff kesoskg) Totalsuspendedsolids Regionalfactor Biologicaloxygen demand(BOD) (Tss) 1.O (min.tariff) 14.24 31.75 1.5 111.36 47.62 2.0 148.48 63.50 2.5 185.60 79.31 3.O 222.12 95.25 3.5 259.84 111.12 4.0 296.96 127.00 4.5 334.08 142.87 5.0 371.20 158.75 5.5 408.32 174.62 a. The regional factor for each pollutant in each water body begins at 1.0. The applicable tariff for discharges into the water body equals the minimumtariff times the regional factor. The regional factor i s increasedby 0.5 every six months untilreductiontargets are met. Source: Blackman andMorgenstem (2005). 6.21 Inaddition, fees charged to municipalwastewater authorities have ledthem to increase the fees that they charge to their customers. This problem has been especially severe in smaller cities, where the utilities are unable to spread the new costs over a large number o f customers. In 1999, the costs to customers increased by 31 percent in municipalities with fewer than 2,500 people, and by 21 percent in municipalities with 2,500 to 12,000 people. Because discharge fees have been passed on to the customers inthe form of higher sewage fees, andthese fees do not vary significantly across income groups within cities, the incidence o f discharge fees is in fact regressive, that is, the discharge fees consume a larger portion o f the income o f poorer customers than o f richer ones (Enriquez 2004). Furthermore, according to Enriquez (2004), this undesirable effect has been magnified by recent regulatory changes that reduce subsidies to water utilities and enable them to charge user fees that enable them to fully recover costs. Libhaber and others (2003), Challa (2003), and Enriquez (2004) have suggested modifications to Law 99 o f 1993, Decree 3100 o f 2003, andResolution 372 o f 1998 inorder to rectify these problems. 126 6.22 One additional problem stems from the wastewater discharge standards set by Decree 1594 o f 1984. As discussed in Chapter 11 o f this report, these standards are designed to address ecological and aesthetic benefits and require 80 percent removal efficiency for BOD and suspended solids. These standards create disincentives to promoting investments inwater supply and sewerage since compliance with them requires municipal investments in secondary wastewater treatment plants that could only be financed with increases o f over 100 percent in tariffs, which did not necessarily generate environmental benefits. Furthermore, Decree 1594 became a bottleneck for private investment in the sector because compliance with it implied extremely high costs. To complicate matters further, this decree is incompatible with the water effluent charge system, thus generating uncertainty about the environmental responsibilitieso f water users. Analysis of PolicyImplementation 6.23 Despite improvements achieved to date under the 2001 Water Supply and Sanitation Reform Program, water, sanitation and sewerage coverage continues to be faced with significant challenges. In 2001, approximately 75 percent o f the population living in urban areas (31,339,130 inhabitants) had access to sewerage systems, implying that 7,803,000 people lacked access (Table 6.4). However, rural coverage was muchlower (53 percent for water and57 percent for sanitation), shrinkingto 52 percent and 15 percent for water and sanitation, respectively, when the definition is restricted to householdwater and sewerageconnections. 6.24 The increase incoverage rates masks shortcomings inthe quality o f service. Although the overall performance indicators for the 59 largest utilities show reasonable levels o f efficiency and service levels, water rationing and intermittent supplies are common in most water supply systems o f smaller municipalities. Only slightly less than 50 percent o f all drinking water supply outside the major urban centers is being treated properly. As a result, the drinkingwater quality in many systems is substandard. One o f the main reasons for this is that almost a third o f the smaller municipalities, although equipped with water treatment plants, do not make the necessarypurchases of chlorine for water disinfection due to theirweak technical capacity andcashflow problemsthat restrict the availability ofresources to purchase basic production inputs. In addition, sufficient pressure in the water supply systems i s often lacking, adding to the risk o f bacterial contamination. Added to this, sewage collection systems do not have sufficient hydraulic capacity to handle wastewater flows, especially in poor neighborhoods, resulting in overflow problems anddirect health and environmental impacts. 6.25 As highlighted in the section above, in order for Colombia's sectoral policies to efficiently and effectively target waterborne diseases, they might consider promoting safe water programs and hygiene interventions in addition to water supply and sewerage, particularly in those rural zones where the population is at greatest risk o f diarrheal disease (see Table 6.1). Inaddition, the policies might consider efforts aimed at promoting increased water supply and sanitation coverage by modifying current policies and instruments (EIA framework, Decree 1594/84, wastewater effluent fees) that discourage private participation inthe sector. For example, with respect to wastewater effluent fees, it would be necessaryto phase out charges associated with organic and total suspended solids loads for which dischargers currently have to pay, and focus instead on parameters that have a more direct and significant bearing on public health. 127 Table 6.4: UrbanSewer SystemCoverage, 2001 Number of municipalities by rate of Number of sewer system coverage Avg. Department municipalities < 70% 7040% > 80% coverage Antioquia 125 26 22 77 87.9 Atlhtico 23 21 2 0 61.7 Bogotti 1 0 0 1 80.0 Bolivar 45 40 2 3 48.9 Boyacl 123 12 11 100 88.4 Caldas 27 2 2 23 90.6 Caquetl 16 7 3 6 50.7 Cauca 41 17 7 17 81.6 Cesar 25 14 7 4 71.0 C6rdoba 28 25 0 3 48.0 Cundinamarca 116 58 8 50 62.1 Choc6 26 25 0 1 20.4 Huila 37 1 9 27 82.2 La Guajira 14 9 2 3 52.5 Magdalena 26 24 1 1 48.1 Meta 29 8 3 18 74.7 Nariilo 63 30 12 21 76.5 Norte de Santander 40 6 4 30 78.8 Quindio 12 1 7 4 83.6 Risaralda 14 0 0 14 86.1 Santander 87 10 4 73 89.3 Sucre 24 19 3 2 50.4 Tolima 47 26 4 17 76.3 Valle del Cauca 42 6 1 35 82.3 Arauca 7 6 1 0 50.7 Casanare 19 10 0 9 76.3 Putumayo 13 12 1 0 50.1 SanAndres y Prov. 2 2 0 0 48.9 Amazonas 2 1 1 0 68.7 Guainia 1 1 0 0 25.0 Guaviare 4 2 1 1 57.1 Vaupes 3 3 0 0 35.9 Vichada 4 4 0 0 7.6 Total 1086 428 118 540 75.1 Source: Universidad de Los Andes andMinistryofEnvironment 2002, reported inContralorfa2002. Analysis ofAlternativeInterventions 6.26 To analyze potential alternative interventions in Table 6.2 it is important to distinguish between those that involve changes in household behavior and those that involve infrastructure or hardware improvements. Interventions that involve changes inhousehold behavior are improved hygiene and water treatment at point-of-use. While public authorities can promote these behaviors, changes in behavior by individuals and households are beyond their control. It is therefore important to explicitly account for this behavioral component in a benefit-cost analysis. With respect to infrastructure or hardware (water supply and sanitation facilities), improvements are predominantly functions of provision and are likely to be used by households if design and service delivery reflect demand and provide convenience. Therefore, 128 uncertainties regarding behavioralchange inrelationto water supply andsanitation tend to be less important inabenefit-cost analysisthanfor hygiene improvement andpoint-of-use treatment ofdrinkingwater. Table 6.5: SelectedExposure Scenarios Pathogen Relative risk Scenario Description load (W VI N O IMPROVED WATER SUPPLY AND N O BASIC SANITATION ina country that is not extensively coveredby Very High 11.0 those services, andwhere water supply is not routinely controlled vb IMPROVED WATER SUPPLY andnobasic sanitation ina country that is not extensively coveredby those services, and Very High 8.7 where water supplyis not routinely controlled Va BASIC SANITATIONbutno improvedwater supply ina country that is not extensively coveredby those services, and High 6.9 where water supplyi s not routinely controlled IV IMPROVED WATER SUPPLY AND BASIC SANITATION in a country that is not extensively coveredby those services, and High 6.9 wherewater supplyis not routinely controlled I I I C IVandimprovedaccessto drinkingwater (generally pipedto household) High IIIb IVandimprovedpersonalhygiene High 4.5 IIIa IVanddrinkingwater disinfected at point ofuse High 3.8 I1 Regulatedwater supply and full sanitation coverage, withpartial Medium treatment for sewage, corresponding to a situation typically found to 2.5 indevelopedcountries Low I Idealsituation, corresponding to the absence o ftransmission o f diarrheal diseasethrough water, sanitation, andhygiene Low 1.o Source: Basedon Pruss and others (2002). 6.27 Pmss and others (2002) provide a framework for estimating the burden o f disease from inadequate water, sanitation, and hygiene. This framework is presented in Table 6.5. Although Pruss and others (2002) applied the framework to estimate the global burden o f diarrheal disease, it can also be effectively applied to estimate the benefits andcosts o f improvedwater supply andsanitation. 6.28 The relative risks in Table 6.5 can be interpreted as follows. The risk o f diarrheal illness in a situation o f no improved water supply and no basic sanitation (Scenario VI) is 60 percent higher ([11.0- 6.9]/6.9) than in a situation with improved water supply and basic sanitation (Scenario IV), the risk o f diarrheal illness ina situation with improvedwater supply andbasic sanitation (Scenario IV) i s 2.75 times higher [6.9/2.5) than in a situation with regulated water supply and full sanitation coverage and partial treatment for sewage (Scenario II), and the risk o f diarrheal illness in a situation o f no improved water supply and no basic sanitation (Scenario VI) is 4.4 times higher [11.0/2.5] than in a situation with regulated water supply and full sanitation coverage and partial treatment for sewage (Scenario II)." According to the WHO, diarrheal incidence (cases per person per year) inmost developing regions o f the '' Scenario I1correspondsto the situation typically found indeveloped countries (see Table 6.4). 129 world is three to five times higher than in North America and high-income countries in Europe, and as much as six times higher than in Sub-Saharan Africa (WHO 2002). These statistics are relatively consistent with the figures reported in Table 6.5, suggesting that most developing countries lie somewhere in the range o f Scenario 4 to Scenario 6. It is important to note that these figures represent averages, andit should be made clear that larger variations exist within specific developing countries and some segments o f their populations lie closer to Scenario 11. Table 6.6: Rates of Reduction inDiarrhealIllness Used inPrussand Others (2002) Scenario Reduction in progression Description of improvement illness rate PA) Source FromVI to Vb Providingimprovedwater supply 20.8 Esrey(1996) FromV I to Va Providing basic sanitationfacilities 37.5 Esrey (1996) FromV I to I V Providing improvedwater supply andbasic sanitationfacilities 37.5 Esrey(1996) FromI V to IIIb Improvedpersonalhygiene 35 Huttly.Morris,and Pisani(1997) FromI V to IIIa Disinfectionofdrinkingwater at point-of- use 45 Quick et a1(1999) Huttly,Moms, and FromI Vto I1 Regulatedwater supply andfull sanitation coverage, withpartialtreatment of sewage 65 Pisani(1997), Quick et a1(1999) Absence oftransmission ofdiarrheal Usingresults from FromI1to I disease throughwater, sanitation, and 60 Meadandothers hygiene .- (1999) 6.29 Prussand others (2002) derivedthe relativerisks o fdiarrheal illness fromthe internationalliterature (Table 6.6). The expected reductions in diarrheal illness from provision o f improved water supply, basic sanitation facilities, or both water supply and basic sanitation are from Esrey (1996) and are supported by the results inEsrey andothers (1991). Pruss andothers (2002) identify the risktransitionbetween Scenarios IV and I1as the most "data-scarce" transition between the scenarios inTable 6.5. According to Pruss and others (2002), there are no intervention studies that fully describe this transition. The authors therefore rely on a staged approach by applying results from the international literature that describe selected characteristics o f the difference between Scenarios IV and 11, such as improved personal hygiene (Scenario IIIb) and improved water quality (Scenario IIIa). Of all personal hygiene improvements, handwashing is often found to be the most effective intervention to reduce disease transmission. Pruss and others (2002) therefore apply the results from a review o f studies o f handwashing by Huttly andothers (1997) to estimate the reduction indiarrheal illness from Scenario IV to IIIb.For water quality improvements, Pruss andothers (2002) apply the results from Quick and others (1999), who found a 45 percent reduction indiarrheal illness from point-of-use water disinfection. The combined results o f Huttly and others (1997) and Quick and others (1999) were subsequently usedto arrive at the expected reduction indiarrheal illness fiom Scenario IV to Scenario 11,'' To assess the magnitude of the differencein diarrheal illness that is transmitted through water, sanitation, and hygiene-between Scenario I1(typically found in developed countries) and Scenario I(typically ideal situation with absence o f diarrheal disease), Pruss and others (2002) deduct the share o f diarrheal illness that is found to be food-borne inthe UnitedStates from a likely sharethat mightbe ''The reductionindiarrhealillness from the combinedresults of Huttly, Morris, and Pisani (1997) and Quick and others (1999) is calculatedby 1- [(l-0.35)(1-0.45)] =0.65, as appliedbyPruss andothers(2002). 130 transmitted through aerosols.93This approach suggests that 60 percent o f diarrheal illness in a Scenario II situation is related to water, sanitation, and hygiene, and is therefore the expected reduction in diarrheal illness from Scenario I1to Scenario I. 6.30 The percentage reductions in diarrheal illness in Table 6.6 correspond to the relative risks presentedinTable 6.5. For instance, the difference inrelative riskbetween'scenarios IV (6.9) andI1(2.5) corresponds to about a 65 percent reduction {[(6.9-2.5)/6.9] * 100percent} from Scenario IV to 11. 6.31 The following paragraphs discuss how the framework by Pruss and others (2002) is applied to estimate the benefits and costs o f interventions to reduce diarrheal illness and diarrheal mortality in Colombia. The exposure scenarios applied for Colombia are presented in Table 6.7. Two aspects o f the framework are modified to accommodate various combinations o f the scenarios and so as not to be necessarily limited to the sequence o f pathogen load reductions used by Pruss and others (2002). The relative risks, or reductions in diarrheal illness, are also modified to reflect the more recent findings o f relative risks in the meta-analysis study by Fewtrell and Colford (2004) and the meta-analysis study o f handwashingby CurtisandCairncross (2003). 6.32 The first modification to the framework presented by Pruss and others (2002) is to distinguish between households that disinfect their drinkingwater at point-of-use and those households that do not disinfect their drinkingwater at point-of-use. This distinction i s made for each o f the Scenarios 111-VI. The second modification is to distinguish between households with piped water supply that is treated at source (water treatment plant) andthose with piped water that is not treated at source. 6.33 To allow for a comparison to Table 6.5 the relative risk for Scenario VI without point-of-use disinfection is also 11.O in Table 6.7. The relative risks in Vb and Va are derived by multiplying the relative risk in VI by the relevant relative risk ratios in Table 6.2. Consistent with the findings o f Pruss and others (2002), there is no difference between Va and IV. The difference between IV and IIId is a relative risk ratio o f 0.9, reported in Fewtrell and Colford (2004) for household water supply connection. The difference betweenIIIdandIIIc is the relative riskratio o f 0.891 presented inTable 6.2. Table 6.7: Exposure Scenario Application to Colombia Relative risk (RR), with and without point-of-usedisinfection Scenario Description With Without 1.1.o ~~V I No improvedwater supplyandno basic sanitation 5.8 Vb Improvedwater supply andnobasic sanitation 8.2 4.4 Va Basic sanitationbutno improvedwater supply 7.5 4.0 I V Improvedwater supply andbasic sanitation 7.5 4.0 IIId I V andwater supplypipedto household(no source treatment) 6.7 3.6 I I I C I V andwater supplypipedto household(source treatment) 5.9 3.6 Note: RRis relative riskof diarrheal disease. Source: Modified fromPrussand others (2002). 6.34 InScenariosVIto IIId,the ratioofthe relativerisk withpoint-of-use disinfectionto the relativerisk without point-of-use disinfection is 0.53. This corresponds to the relative risk ratio for ruralwater supply in Table 6.2, which may be considered more appropriate to apply than the urban relative risk ratio because 93 Meadandothers (1999) found that 35 percent ofintestinalillness is food-borneinthe UnitedStates. 131 Scenarios IV-VI are typically found inrural areas (see Table 6.8) and water quality in Scenarios IIIdto VI is on average likely to involve higher disease risk than urban treated piped water supply. The relative risk for IIIc andIIIdis assumedto bethe same ifdrinkingwater is disinfected at point-of-use. 6.35 Scenario 11, the situation typically found in developed countries, is not included in Table 6.7. Providing this level o f service (including partialsewage treatment) to the entire urban and rural population indeveloping countries is likely to be very costly. The benefit-cost analysis inthis reporttherefore focuses on improved water supply andbasic sanitation to those segmentso fthe population without these services. 6.36 To estimate the health benefits o f water and sanitation interventions it i s necessary to provide an estimate o f the Colombian population shares in each o f the scenarios. Three sources o f data from Colombia are used for this purpose, that is, the 2000 Colombia DHS household survey with data on the water and sanitation situation in urban and rural areas, data from the MAVDT on piped water network and water treatment plants, andthe 2003 DANEColombia Quality o f Life Survey with data on household drinkingwater disinfection (DANE2003). \ 6.37 The water supply and sanitation situation according to the 2000 Colombia DHS is presented in Table 6.8. As discussed in relation to Table 6.2, unimproved or no basic sanitation mainly refers to households with no sanitation facilities or open-pit latrines. The Colombia DHS tables do not distinguish between types o f pit latrines. It is therefore necessary to use a high and low bound for the population share without improved or basic sanitation. Similarly, no improved water supply refers mainly to surface water, tanker trucks, and unprotectedwell or spring water. However, the DHS tables do not distinguish betweenprotectedandunprotectedwell water. Again, it is necessaryto apply a highandlow bound. Table 6.8: Water Supplyand Sanitation inColombia(% ofHouseholds) Water suuulv andsanitationsituation Urban Rural Sanitation No sanitationfacilities 1.4 28.7 Pit toilet latrine 2.4 13.0 Flushtoilet 96.2 58.2 Water Pipedwater supply 98.0 50.3 Well water 1.3 18.7 Surfacewater 0.0 24.6 Rainwater 0.4 4.1 Tankertruck 0.1 1.2 Other 0.2 1.o Source: ColombiaDHS2000. 6.38 Inorder to use the data inTable 6.7 to estimate the populationshares ineach of the scenarios in Table 6.6, a set o f allocation "rules" were applied. These "rules" are presented in Table 6.9, and their application is presented in Tables 6.10 and 6.11. In the "high" case, well water is considered as unimproved water supply and pit latrines are not considered as basic sanitation. In the ``low'' case, well water is considered as improvedwater supply and pit latrines are considered as basic sanitation. Because the DHS data do not provide information on treated versus untreated piped water supply, Table 6.10 accordingly makes no distinction betweentreated and untreatedpiped water supply. 132 6.39 Data from the MAVDT were used to provide an estimate of the urban population share with pipedwater supplythat is nottreatedat source. Accordingto MAVDTdata, there were 174municipalities that didnot have awater treatment plant in2002, andthere were 164municipalities with water treatment plants that were not in operation. While these figures represent over 30 percent of the total number of municipalitiesinColombia, they representonly alittle over 5 percent of the populationservedby awater supplynetwork.94 Table6.9: ScenarioAllocationRules Scenario Allocation rule VI The lesser of the populationshare without improvedwater supply andwithout basic sanitation vb The differencebetweenpopulationshare without basic sanitationandwithout improvedwater, if differenceis >0 Va The differencebetweenpopulationsharewithout improvedwater supply andwithout basic sanitation,if differenceis >0 IV The lesser ofthe populationshare withimprovedwater supplyandbasic sanitationless the population share withpipedwater IIId Populationsharewithpipedwater supply I I I C Populationsharewithpipedwater supply Table 6.10: RuralWater Supply and Sanitation inColombia (% ofrural uomlation) Scenario Description High * Low * VI No improvedwater supplyandno basic sanitation 1. 42 27 vb Improvedwater supply andno basic sanitation 0 2 Va 2. Basicsanitationbutno improvedwater supply 4 0 IV Improvedwater supplyandbasic sanitation 4 21 ``Id IVandwatersupplypipedtohousehold(nosourcetreatment) and 50 50 I I I C *"High" and"low" refer to populationsharewithout improvedwater supply and/orwithout basicsanitation. Table 6.11: UrbanWater Supply and Sanitationin Colombia (% ofurban population) Scenario Descriation Hiah * Low * ~~ VI No improvedwater supplyandnobasic sanitation 1.5 0.3 vb Improvedwater supplyandnobasicsanitation 2.5 1.1 Va Basic sanitationbutno improvedwater supply 0 0 IV Improvedwater supply andbasic sanitation 0 0.6 IIId IVandwater supplypipedto household(no sourcetreatment) 5 6 I I I C IVandwater supplypipedto household(sourcetreatment) 91 92 *"High" and"Low" refer to populationsharewithout improvedwater supply and/orwithout basic sanitation. 94 It shouldbe notedthat the urbanshare of the populationin I11inTable 6.10 is lower than the share with piped water inthe "high" case because some households (approximately2 percent) do not have basic saniqtion and are thereforenotincludedin111. 133 6.40 The 2003 Colombia Quality of Life Survey reports that 53 percent o f urban households and 58 percent o f rural households disinfect their drinkingwater (point-of-use disinfection).'' The Quality o f Life Survey does not provide the share o f households that use disinfection in relation to their type o f water supply and sanitation. The data on disinfection is therefore applied uniformly to each of the scenarios. Tables 6.10 and 6.11 suggest that most health benefits from improved water supply and sanitation can be realized in rural areas. The benefit-cost analysis in this report therefore focuses on rural service improvements. Larsen (2004) presents the estimated number o f diarrheal illness cases inColombia based on the Colombia DHS 2000 survey and data from INS (Table 6.12). The total number o f annual cases o f diarrheal illness was estimated at close to 30 million, or equivalent to 0.7 cases per person. Table 6.12: EstimatedAnnualCases ofDiarrhealIllnessinColombiain2000 National Urban Rural Childrenunder age 5 with chronic diarrhea(lastingtwo weeks) 13.9% 13.2% 15.6% Populationover age 5 with chronicdiarrhea(lasting two weeks) 2.0% 1.9% 2.2% Annual diarrhea cases inchildrenunderage 5 (000) 13,800 9,300 4,500 Annual diarrhea cases inpopulation>5 (000) 16,100 10,900 5,200 Total annual diarrhea cases (000) 29,900 20,200 9,700 Diarrheacases perperson(all population) 0.68 0.65 0.77 Source: Larsen (2004). 6.41 Estimated cases o f diarrheal illness per person per year inrural areas inColombia is estimated for Scenarios IIIc to VI from the relative risks in Table 6.7, the scenario population distribution inTable 6.10, and the average diarrheal cases per person inTable 6.12. Table 6.13 indicates that the number o f cases per person is on average 0.45 in households with piped water supply and basic sanitation that practice disinfection o f drinkingwater, and 1.35 per year inhouseholds that do not have improved water supply, do not have basic sanitation, and do not practice drinking water disinfection. This is for the "high" case in Table 6.10. For the "low" case, the rangeis 0.47 to 1.42. Table 6.13: EstimatedAnnual Cases of DiarrhealIllnessper PersoninRuralColombia Casesof diarrheal illnessper person WITHOUT WITH point-ofuse point-ofuse Scenario Description disinfection disinfection V I No improvedwater supply andnobasic sanitation 1.35 0.72 vb Improvedwater supplyandnobasic sanitation 1.01 0.54 Va Basic sanitationbutno improvedwater supply 0.92 0.49 I V Improvedwater supplyandbasic sanitation 0.92 0.49 IIId I V andwater supplypipedto household(no source 0.83 0.45 treatment) I I I C IVandwater supplypipedto household(source treatment) 0.74 0.45 6.42 Providing piped water supply to all rural households is likely to be very expensive. A realistic objective might be to at least provide improved water supply (protected well or borehole) and sanitation facilities (improved pit latrine or pour-flush latrines). Benefits and costs are presented in Tables 6.14 and ''Most ofthe householdsuse boiling ofwater as their methodofdisinfection. 134 6.15 for three interventions: (a) improved water supply and sanitation facilities, (b) improved sanitation facilities only, and (c) improved water supply only. In comparison with Table 6.13, these interventions are equivalent to improving service levels to Scenario IV for the entire ruralpopulation. Table6.14: Benefitsand Costs ofImprovedRuralWater and Sanitation(Low Case)* Improvement Watersupply Sanitation Water and sanitation only supply only Impacts Population ('000) receiving improved sanitation 3,665 3,665 Population ('000) receiving improved water supply 3,413 3,413 Diarrhea cases avertedper year 1,170 1,170 900 Diarrhea cases avertedperyear (% reduction) 4% 4% 3% Deathso f children due to diarrhea averted 65 65 50 Deathso f children due to diarrhea averted(%) 4% 4% 3% Value of costs andbenefits (billion pesos) Annualized cost o f serviceprovision 128 70 57 Healthbenefits o f serviceprovision 38 38 29 Value oftime savings from improvedwater supply 90 90 Value oftime savings from improvedsanitation 167 167 Benefit-cost ratios Health benefits only 0.3 0.54 0.51 Healthbenefits andtime savings 2.31 2.91 2.08 * Low case refers to the low estimate o fpopulationwithout improvedwater supply and sanitation in Table 6.10. Table6.15: Benefitsand Costs ofImprovedRuralWater and Sanitation (High Case)* Improvement ~~~ Watersupply Sanitation Water supply andsanitation only only Impacts Population('000) receiving improved sanitation 5,310 5,310 Population ('000) receiving improved water supply 5,815 5,815 Diarrhea cases averted per year 1,680 1,680 1,310 Diarrhea cases averted per year (% reduction) 6% 6% 4% Deaths o f children due to diarrhea averted 90 90 70 Deaths of children due to diarrhea averted (%) 6% 6% 4% Value o f costs andbenefits (billion pesos) Annualized cost of service provision 200 102 98 Healthbenefitsof service provision 54 54 42 Value of time savings from improved water supply 90 90 Value o f time savings fromimproved sanitation 167 167 Benefit-cost ratios Healthbenefitsonly 0.27 0.53 0.43 Healthbenefitsandtime savings 1.56 2.18 1.36 * High case refers to the highestimate o fpopulation without improvedwater supply and sanitation inTable 6.10. 135 6.43 The population receiving improved water supply and sanitation is calculated from Table 6.10. Diarrheal cases averted are calculated fkom Table 6.13. Deaths averted are calculated based on an estimated case fatality rate o f 0.118 per 1,000 cases in children age under 5, based on data presented in Larsen (2004). Health benefits of service provision are estimated based on a cost o f diarrheal illness o f C$25,000 per case averted (morbidity) and a cost o f C$136 million per death averted in rural areas (Larsen 2004).96 6.44 Estimated household time savings as a result o f improved water supply are presented in Table 6.16. Data on households with more than 15 minutes to water source i s from the Colombia DHS 2000. A lower bound o f 15 minutes is assumed in Table 6.16 in order to provide a conservative estimate o f time savings. To estimate time savings for households that have less than 15 minutes to water source, only households relying on surface water (DHS 2000) are assumed to save time from improvedwater supply. An average time saving of five minutes to water source is assumed. To place a monetary value on time savings, economists commonly apply a range o f 50 to 100 percent o f wage rates. The value o f time savings presented in Tables 6.14 and 6.15 is estimated based on 75 percent o f average wage rate. For sanitation improvements, a time saving of five minutes per day per personhas been applied. Table 6.16: HouseholdTime Savings from ImprovedWater Supply Ruralpopulationsharewith time savings > 15minutes to water source 7% Numberofhouseholds('000) with > 15minutes to water source 177 Assumedaverage numberofminutesto water source 15 Trips per day to water source 2 Time savings from improvedwater supply(minutesper day per household) 30 Percent ofhouseholdsrelying onsurfacewater 25% Numberofhouseholds('000) usingsurfacewater 632 Number ofhouseholds('000) with < 15 minutesto water source* 455 Assumedaverage number ofminutes to water source 5 Trips per day to water source 2 Time savings from improvedwater supply (minutes per day perhousehold) 10 * Calculation:632 - 177=455. 6.45 The annualized cost o f service provision reflects an annualized per capita cost o f C$19,000 for improved sanitation (improved latrines) and C$17,000 for improved water supply (protected well or bore hole). This is based on a 10 percent annual discount rate, a per capita investment cost o f C$125,000 for sanitation (plus an annual 5 percent operation and maintenance [O&M] cost and 5 percent promotion cost, and C$5,000 in annual sewage cost), and a per capita investment cost of C$130,000 for improved water supply (plus anannual5 percent O&M and5 percent water sourceprotectioncost)?7 6.46 As seen inTables 6.14 and 6.15 andFigure 6.4, the estimatedbenefit-cost ratiothat only includes healthbenefits i s close to 0.5 for either water supply improvements or sanitation improvements. For water supply sanitation, the health cost-benefit ratio i s close to 0.3.98 These estimates, in the case o f 96Healthbenefitsincludeavoidedcost of treatment ofdiarrhealillness (cost ofvisits to medicalfacilities andcost of medicines), andthe value ofavoidedtime losses. 97Per capitainvestment costs represent averagecosts inSouthAmerica(WHOAJNICEF 2000). 98The reasonfor the lower ratio for a combineddelivery of improvedwater and sanitationis that the relative risk in 136 Figure 6.4: Benefit-Cost Ratios ofRuralWater andSanitation(Low Case) Sanitation Water supply Water supply& sanitation "Low case" refersto the low estimateof populationw fthout inproved water supply and sanitation(ScenarioVI) inTable 6.10 Colombia, suggest that the health benefits are only a third to a half o f the cost o f water and sanitation improvement costs. By including time savings, however, the benefit-cost ratio is greater than 1 in both the "low" and"high" case.99 Analysis of Hygiene Improvements 6.47 The most effective hygiene intervention has been found inmany studies to be handwashing after defecation, before preparing meals, and before eating. Curtis and Cairncross (2003) provide a meta- analysis o f close to 20 handwashing studies and report a mean reduction in diarrheal illness o f about 47 percent. Fewtrell and Colford (2004), in their meta-analysis, report a mean reduction in diarrheal illness o f about 45 percent fiom handwashing interventions (Table 6.2). About two-thirds o f the studies reviewed inthe two meta-analysis studies assessedthe effect ofhandwashingon diarrhealillness inchildren under age 5. The meta-analyses do not report the effect o f handwashing on diarrheal illness in children under age 5 versus older children and adults. A pooled analysis o f the studies reviewed in the two meta- analyses was therefore undertaken in this report, but found no statistically significant difference in diarrheal reduction in children and adults. A reduction in diarrheal illness of 45 percent i s therefore applied inthe benefit-cost analysis inthis report for all age groups. 6.48 A benefit-cost analysis o f hygiene improvement (handwashing programs) involves an assessment o f several key parametersandoutcomes. These are listedinTable 6.17. The costs ofimprovedhandwashing practices are twofold. First, a program to encourage behavioral change (improved handwashing) has a cost that should be fully captured. This includes the cost o f program preparation and implementation. Second, improved handwashing practices have a private cost that includes cost o f increased water and soap consumption. The most uncertain and critical parameter is the effectiveness o f the handwashing program in terms o f changing household and individual behavior, and the lasting effect or sustainability o f changed behavior. This behavioral aspect is likely dependent on several dimensions and will vary from country to country. It will also depend on the design, duration, and overall magnitude o f the handwashing program. The expected benefit of the program can be estimated from the diarrheal illness risk reductions reported in Scenario Va andIV inTable 6.6 is the same. 99 A benefit-cost analysis is not undertaken for urban water and sanitation improvement because of the low populationshare that wouldbenefit from improvementsto Scenario IVaccordingto Table 6.10. 137 Curtis andCairncross(2003) andFewtrellandColford(2004), andthe monetizedbenefits (or costs avoided percaseofdiarrhealillnessreduction) presentedinLarsen (2004) for Colombia. Table 6.17: Key Parameters and Outcomesin a Benefit-Cost Analysis of Handwashing Key parameters Outcomes ~~ ~ ~~ Program cost Overall cost o fhandwashingprogram Program effectiveness Behavioral change intarget population ("?ofpopulation that improves or starts regular handwashing) Program sustainability The lasting effect oftheprogram Private cost Costs ofhandwashinginthe group with behavioral change(increased water and soap expenditures) Programbenefits Percentreduction indiarrheal illness from handwashing ingroup with behavioral change Monetizedbenefits ofreduceddiarrheal illness Table 6.18: Reviewof Costs and Effectivenessof HandwashingPrograms Thailand Low High Guatemala intervention intervention Burkina Faso Target area National 25 ruralvillages One city Target households w l children wlchildren under 5 All households under3 Numberoftarget households 1,570,000 10,000 6,550 38,600 Durationo fprogram implementation 1year 3-4months 3-4months 3 years Behavioral change ("?oftarget population) 10% 11% 16% 18% Program cost (US$) 561,400 5,960 7,715 194,000 Program cost per household (US$) 0.36 0.60 1.18 5.03 Program cost per target householdprimary caretakerwith behavioral change(US$) 3.58 5.42 7.36 27.92 Source: DerivedfromSaade, Bateman,andBendahmane(2001); PinfordandHoran(1996); andBorghiandothers (2002). 6.49 A review of three handwashingprograms that provide program costs and behavioral change is presented in Table 6.18. The program in Guatemala was national in scope and targeted households with children under age 5 (Saade, Bateman, and Bendahmane 2001). The program in Thailand focused on all households ina set of rural villages and involveda different level of program intervention intwo subsets of the villages (Pinford and others 1996). The program in Burkina Faso involved one city and targeted householdswith children under age 3 (Borghi and others 2002). As seeninTable 6.18, the percentagesof the target population that changed behavior (that is, started regular handwashing or improved handwashingpractices) range from 10 percent inGuatemalato 18 percent inBurkina Faso. In addition, the cost per target householdranges from US$0.36 inGuatemalato US$5.03 inBurkina Faso. While the studies are too few to draw a definite conclusion, the results do suggest that program cost per unit of 138 behavioral change (per percentage point increase in population with behavioral change) may increase substantially ifthe objective is to achieve behavioral change ina large share o f the target population. This issue may therefore have major impact on the overall cost o f hygiene programs that aims to achieve substantial reductions inthe overall number o f cases o f diarrheal illness ina country. 6.50 Program cost per target householdwith behavioral change is the most relevant unit cost inTable 6.18 for a benefit-cost analysis. This cost can thenbe compared to the reduction (and thereby benefits) in diarrheal illness inthe target populationwith behavioralchange. 6.51 A benefit andcost analysis of a national handwashing programinColombia is presented inTable 6.19. Three scenarios are provided for diarrheal reduction in children under age 5, andtwo scenarios for the population over age 5. The "low" to "high" scenarios for children represent: (a) a program effectiveness o f 10 to 20 percent in terms of the percentage o f households (or primary caretaker o f children) that start regular handwashing or improve handwashing practices for the protection o f child health; and (b) a program cost ranging from US$0.4 to US$5.0 per targeted household or primary caretaker (US$4.0 to US$25.0 per householdor primary caretaker with behavioral change). These ranges o f program effectiveness and costs are based on the figures in Table 6.18. The "high" scenario corresponds to the experience in one city inBurkinaFaso. However, it is possible that a national program will benefit from economies o f scale and therefore achieve 20 percent effectiveness at a unit cost lower than US$5.0 per primary caretaker of children under age 5. It is therefore possiblethat the "high" scenario represents a higher bound o f program cost. It is also possible that the "low" scenario with a program effectiveness o f 10 percent can be achieved at a lower cost than in Guatemala if further economies o f scale are achieved, giventhat the population inColombia is substantially larger than inGuatemala. 6.52 The diarrheal illness baseline data; andcost o f illness per case o f diarrhea and diarrheal mortality inTable 6.18 are taken from Larsen (2004). Avoided cost of illness is the program benefit per case of reduced or averted diarrheal morbidity and mortality. Mortality is valued by the human capital approach as shown inthis report's section on water and sanitation improvement. The percent reduction indiarrheal illness (45 percent) in children with caretakers who start regular handwashing or improve handwashing practices is taken from Curtis and Cairncross (2003) and Fewtrell and Colford (2004), as presented in Table 6.2. With respect to the private cost o f handwashing, the quantity o f increased water and soap consumption reflects the findings in Borghi and others (2002). Price o f water represents an average for Colombia, andthe cost o f soap is based on a spot survey o f soap retailprices inColombia. 6.53 The estimated reduction inannual cases o f diarrheal illness ranges from 0.6 million to 1.2 million inchildren under age 5. At a cost of C$35,000 per averted case of illness (morbidity) and C$136 million per averted case o f death (mortality), the total program benefit ranges from C$31 billion to C$63 billion."' Total program cost ranges from less than C$5 billion to C$57 billion, and total private cost ranges from C$6 billion to C$12 billion. The total estimated benefits and costs result in a benefit-cost ratio that ranges from 3.0 inthe "low" scenario to 0.9 inthe "high" scenario (see also Figure 6.5). loo Note that the cost of35,000 pesos is higherthanthe figure for rural areasusedinthe water andsanitationsection. This is because the cost of 35,000 pesos reflects higher medicalcosts and value of caretakers' time inurban areas, and that medical cost of diarrheal illness in children is higher than for adults because a higher share of diarrheal illness inchildreni s treated thaninadults. 139 Table 6.19: Benefits and Costsof a NationalHandwashing PrograminColombia Under 5years old Over 5years old Low Medium High Low High Baselinedata Totalpopulationby age group (DANE) 4,767,533 4,767,533 4,767,533 39,763,901 39,763,901 Diarrheacases perpersonperyear 2.9 2.9 2.9 0.4 0.4 Total diarrhea cases peryear 13,826,000 13,826,000 13,826,000 16,104,000 16,104,000 Deaths from diarrhea (childrenunder 5) 1,634 1,634 1,634 Diarrheafatality rate (per 1,000 cases) 0.118 0.118 0.118 Programcost Reach(% ofpopulation) 100% 100% 100% 100% 100% Costper primary target (US$) 0.40 1.20 5.00 Total cost (million pesos) 4,577 13,730 57,210 Program effectiveness Individuals with behavioralchange (%) 10% 15% 20% 5% 10% Cost per personwith behavioral change (US$) 4.00 8.00 25.00 Reductionindiarrhea incidenceamong individuals withbehavioralchange (%) 45% 45% 45% 45% 45% Overall reduction indiarrhea cases (%) 4.5% 6.8% 9.0% 2.3% 4.5% Privatecosts for improvedhygiene Increaseddailywater use (litedperson) 3 3 3 3 3 Increasedannual water use (m3/person) 1.095 1.095 1.095 1.095 1.095 Cost of water (pesos/m3) 720 720 720 720 720 Cost of water/persodyear (pesos) 788 788 788 788 788 Soap consumptiodpersodyear 6 6 6 3 3 Cost per soap (pesos) 2,000 2,000 2,000 2,000 2,000 Cost of soap/persodyear (pesos) ' 12,000 12,000 12,000 6,000 6,000 Total privatecosVyear (million pesos) 6,097 9,145 12,194 13,497 26,993 Programbenefits Reductioninannual cases ofdiarrhea 622,170 933,255 1,244,340 362,340 724,680 Deaths averted(childrenunder 5) 74 110 147 Cost per case of diarrhea (pesos) 35,000 35,000 35,000 30,000 30,000 Cost per death from diarrhea (million pesos) 136 136 136 Morbidity benefitdyear(million pesos) 21,776 32,664 43,552 Mortality benefitdyear (million pesos) 10,000 15,000 20,000 Total benefitdyear(million pesos) 31,776 47,664 63,552 10,870 21,740 Cost-benefit ratios Programcost (million pesos) 4,577 13,730 57,210 0 0 Privatecost peryear (million pesos) 6,097 9,145 12,194 13,497 26,993 Benefitsperyear (million pesos) 31,776 47,664 63,552 10,870 21,740 Benefit-cost ratio 3.0 2.1 0.9 0.8 0.8 Note: For childrenunder age 5, the low, medium, andhigh scenarios correspondto 10, 15, and 20 percenteffectiveness in terms of the percentage of individuals whose behavior is changed. For populationover age 5, the low and high scenarios represent5 and 10percenteffectiveness. 140 6.54 Not only children under age 5 can benefit from a handwashing program. The population over age 5 can also benefit as discussedat the beginning o fthis section. To simplify the analysis, it is assumedinTable 6.19 that changes inhandwashing behavior in the population over age 5 can be achieved at no incremental program cost, but that the effectiveness only ranges from 5 to 10 percent. It is also assumed that soap consumption per person is only a half o f the soap consumption required for improved hygiene for children under 5. Inthis case, the benefit-cost ratio is 0.8.''' This low ratio, even at zero incremental program cost, can be explained by the fact that diarrheal incidence is on average substantially lower in this population group than inchildrenunder 5. 6.55 One very important aspect o f the benefit-cost analysis presented above should be noted. It is implicitly assumedthat the benefit o f the program is realized for only one year, or that behavioral change (handwashing) lasts only one year. While it is difficult to assess the sustainability o f behavioral change, Figure 6.5: EstimatedBenefit-Cost Ratios for HandWashing, byDegree ofProgramEffectiveness 3.5 3.O .-0 E 2.5 8 2.0 .E 1.5 Y a m 5 1.0 0.5 0.o 10% 15% 20% Program effectkness target Figure 6.6: Benefit-Cost Ratios over Time for HandWashing (20 Percent Effectiveness Target) 2.0 I 1.a .- 1.6 E 1.4 5 1.2 g5 8 1.0 0.8 0.6 0.4 0.2 0.0 1year 2 years 3years Sustainabilityof behavioral change lo'Note that the ratio is 1.O regardless ofprogrameffectiveness. This is because of the assumptionthat incremental programcost is zero. 141 benefits for only one year is clearly a very conservative assumption. If benefits were sustained for two years, the estimated benefit-cost ratios would increase to the levels presented in Table 6.20. For a program effectiveness target o f 20 percent, the estimated ratio increases from 0.9 to 1.5 for children. Note that the benefit-cost ratio does not change for the population over age 5. This is because of the assumption that behavioral change takes place at no incremental program cost.'" Figure 6.6 presents benefit-cost ratios for children for a target effectiveness o f 20 percent for a program with sustainability o f behavioral change lasting from one to three years. Table 6.20: Benefits and Costsof a National HandwashingProgram (behavioralchange lastingtwo years) Under age 5 Over age 5 Costs and benefits (millionpesos) Low Medium High Low High Programcost (year 1) 4,577 13,730 57,210 0 0 Privatecost peryear (year 1) 6,097 9,145 12,194 13,497 26,993 Privatecostper year (year 2) 5,543 8,314 11,085 12,270 24,539 Benefitsperyear (year 1) 31,776 47,664 63,552 10,870 21,740 Benefits per year (year 2) 28,887 43,331 57,775 9,882 19,764 Benefit-cost ratio 3.7 2.9 1.5 0.8 0.8 Note: Costs and benefits are discounted at an annualrate of 10percent. For children under age 5, the low, medium, and high scenarios correspond to 10, 15, and 20 percent effectiveness in terms o f the percenwge o f individuals whose behavior is changed. For population over age 5, the low and highscenarios represent 5 and 10percent effectiveness. Analysis of Drinking Water Disinfection 6.56 The 2003 Colombia Quality o f Life Survey reports that about 55 percent o f households disinfect their drinking water (point-of-use disinfection). According to the survey, the most common method of disinfection is boiling o f water and is therefore the choice o f disinfection considered in the benefit-cost analysis presented in Table 6.19. Fewtrell and Colford (2004) report from their meta-analysis that disinfection o f drinkingwater at point-of-use on average reduces diarrheal illness by 47 percent in rural areas and 23 percent in urban areas. Applying these figures to the urban and rural population shares in Colombia would suggest a weighted average diarrheal illness reduction o f 30 percent from disinfection. These baseline data are presented inTable 6.19. 6.57 In order to estimate the reduction in the number of cases o f diarrheal illness, it is necessary to estimate the diarrheal incidence inthe population share that does not practice point-of-use disinfection o f drinkingwater. This is givenby the following equation:, P,d +(1-P,)d( 1-r)=dA (1) where P, is the population share not practicing disinfection, d is diarrheal incidence inP,, r is reduction in diarrheal incidence from disinfection, and dAis the national average diarrheal incidence. This equation provides an estimated diarrheal incidence o f 0.8 inthe populationnot practicing disinfection, compared to a national average o f0.68 from Larsen (2004). lo* Ifincrementalprogramcost was positive, then the benefit-cost ratio would be lower than 0.8, but would be somewhathigher for atwo-year behavioralchange scenariothanfor aone-year scenario. 142 Table 6.21: Benefitsand Costsofa DrinkingWater DisinfectionProgram Program effectiveness target Low Medium Hiph Baseline Data Total population(DANE) 44,531,434 44,531,434 4433 1,434 Populationthat does not disinfect drinkingwater (%) 45% 45% 45% Target population(not practicingdisinfection) 20,039,000 20,039,000 20,039,000 Target households 4,008,000 4,008,000 4,008,000 Average diarrheacases/persodyear) 0.68 0.68 0.68 Reductionindiarrheacases from disinfection (%) 30% 30% 30% Diarrheaincidence intarget population 0.81 0.81 0.81 Total diarrhea cases peryear intarget population 16,289,000 16,289,000 16,289,000 Diarrheafatality rateinchildrenunder 5 (per 1,000 cases) 0.119 0.119 0.119 Estimateddiarrhealchildmortality intarget population 950 950 950 Programcost Reach(% oftarget households) 100% 100% 100% Cost per household(US$) 0.40 1.20 5.00 Total cost (million pesos) 3,848 11,543 48,096 Programeffectiveness Individuals with behavioralchange (%) 10% 15% 20% Cost per target householdwithbehavioralchange (US$) 4.00 8.00 25.00 Reductionindiarrhea cases amongindividuals with behavioralchange (% ) 30% 30% 30% Reductionindiarrhea cases intarget population(%) 3.0% 4.5% 5.9% Private costs Cost ofboiling drinkingwater/persodyear(pesos) 5,700 5,700 5,700 Totalprivate costperyear (million pesos) 11,422 17,133 22,844 Programbenefits Reductioninannual cases ofdiarrhea 484,109 726,164 968,2 18 Reductionindeaths from diarrhea(childrenunder5) 28 42 56 Costper case of diarrhea(pesos) 32,000 32,000 32,000 Cost per deathfrom diarrhea(million pesos) 136 136 136 Annual benefits from reducedmorbidity (million pesos) 15,491 23,237 30,983 Annual benefits from reducedmortality (million pesos) 3,840 5,760 7,680 Total benefits peryear (million pesos) 19,331 28,997 38,663 Benefit-ost ratios Programcost (million pesos) 3,848 11,543 48,096 Privatecost peryear (million pesos) 11,422 17,133 22,844 Benefitsper year (million pesos) 19,331 28,997 38,663 Benefit-cost ratio 1.3 1.o 0.5 Note; The low, medium, and high scenarios correspond to 10, 15, and 20 percent effectiveness in terms of the percentageof individuals whose behavioris changed. 6.58 There are no estimates available in the literature o f program costs to promote drinking water disinfection at point-of-use in Colombia. The same costs as for handwashingprograms (and for the same three scenarios o f effectiveness rangingfrom 10to 20 percent) have therefore been applied inTable 6.21. The program cost, instead o f per primary caretaker o f children, is expressed per household with the 143 assumption that one person in the household i s primarilyresponsible for boiling o f drinking water. Cost o f boiling drinkingwater is taken from Larsen (2004) with a mean estimate o f about C$5,700 per person per year, based on an average drinking water consumption o f 0.75 liters per person per day. The disinfection program benefits are estimated the same way as for a handwashing program. 6.59 The benefit-cost ratios range from 1.3 in the "low" scenario with program effectiveness o f 10 percent and program cost o f US$0.4 per household to a ratio o f 0.5 inthe "high" scenario with a program effectiveness o f20 percent andprogram cost o f US$5.0 per household (Figure 6.7). 6.60 As inthe case o f the handwashing program, one very important aspect o f the analysis should be noted. It is implicitly assumed that the benefit o f the disinfection program is sustained for only one year, or that behavioral change (boiling o f drinkingwater) lasts only one year. While it is difficult to assess the sustainability o f behavioral change, the assumption that benefits last for only one year is clearly conservative. Ifbenefits were sustained for three years, the estimated benefit-cost ratios would increaseto close to 1.O for the program, with an effectiveness target o f 20 percent (Figure 6.8). Figure6.7: Benefit-Cost Ratios for Drinking Water Disinfection Program, by Degree of Program Effectiveness 1.4 , .-501.2 1.0 c g 0.8 E 0.6 Y a m 5 0.4 0.2 0.o 10% 15% 20% Programeffectibeness target Figure6.8: Benefit-Cost Ratios over Time for DrinkingWater DisinfectionProgram (20 Percent Effectiveness Target 1.0 . 0.9 .- 5 0.8 ::: 0.7 j 5 0.4 0.3 rn 0.2 0.1 0.0 1 year 2 years 3 years Sustainabilityof behadoralchange 144 6.61 Tables 6.22 and 6.23 summarize the benefits o f the interventions analyzed in this report. The hygiene program i s estimated to have the largestpotentialhealthbenefits, but only ifat least 20 percent o f the population responds favorably to the program andimproves handwashingpractices. With a 20 percent response rate to a hygiene program anda household drinkingwater disinfection program, andprovision o f improved rural water supply and sanitation facilities, the estimated total avoided cases o f diarrheal illness anddiarrhealchildmortality are 16to 18percent ofbaseline cases, re~pectively."~ 6.62 Hygiene improvement and disinfection o f drinking water at point-of-use have a substantial potential to reduce diarrheal illness andmortality, as indicated inTable 6.2. The challenge, however, is to develop and deliver programs that induce sustained behavioral response on a large scale, while maintaining program costs at an affordable level. Table 6.22: BenefitsofInterventionAlternativesinColombia (Morbidity) Effectiveness target Diarrheal illness (million casesper year): Low High Baseline annual cases (Larsen 2004) 30 30 Avoided annualcases: Improvedwater supplyand sanitation(rural areas) 1.2 1.7 Hygieneprogram(improvedhandwashing)* 1.o 2.0 Drinkingwater disinfectionprogram(householdboilingofwater) 0.5 1.o Total avoidedannualcases 2.7 4.7 Total avoidedcases (% ofbaseline cases) 9% 16% *Includes approximately0.35 millionto 0.70 millioncasesinthe populationover age 5. Table 6.23: BenefitsofInterventionsinColombia (ChildMortality) Effectiveness target Diarrheal child mortality: Low High Baselineestimatedannualcases (Larsen 2004) 1,634 1,634 Avoided annual cases: Improvedwater supplyandsanitation(rural areas) 65 90 Hygieneprogram(improvedhandwashing) 74 147 Drinkingwater disinfectionprogram(householdboilingofwater) 28 56 Total avoidedannual cases 167 293 Total avoidedcases (% ofbaselinecases) 10% 18% ConclusionsandRecommendations 6.63 A hygiene program that includes a handwashing component has the largest potential health benefits. With a 20 percent program effectiveness, that is, if 20 percent o f the targeted population practices handwashing, and a household drinking water disinfection program, and provision o f improved rural water supply and sanitation facilities, the estimated total avoided cases o f diarrheal illness and diarrheal child mortality are 16to 18percent o f baseline cases, respectively. lo3Note that the sum of avoidedcases for the three interventions is an overestimate to the extent that it is some of the same households that receive improved water supply and sanitation, and improve their handwashing practices andstart disinfectionoftheir drinkingwater. The extent ofthe overestimatecouldbe 1to 2 percentagepoints. 145 6.64 Hygiene improvement and disinfection o f drinking water at point-of-use have a substantial potential to reduce diarrheal illness and mortality. The challenge, however, is to develop and deliver programs that induce sustained behavioral response on a large scale, while maintaining program costs at an affordable level. 6.65 An additional element of a comprehensive approachto tackle problems related to water supply and sanitation that mightbe considered is interventions aimed at improving water supply andsanitation services inmedium- and small-size municipalities. It would be advisable to apply the policy developed by the Government o f Colombia, with the support o f the Water Sector Reform Assistance Loan (Loan 7077-C0), to support such municipalities, based on institutional improvements o f utilities through private sector participation and on provision o f subsidies to the reformed utilities based on the principle o f minimum requested subsidyby the private sector anddirected exclusively to benefitingthe poor. 6.66 It would also be advisable to reform the environmental regulatory framework, which continues to constrain private sector participation inwater supply and sanitation. Providing improved rural water supply and sanitation facilities would be a central pillar of a policy to prevent waterborne diseases. From the perspective o f environmental protection, private sector participation in water supply and sanitation can be promotedthrough the design andimplementation o f efficient, clear, andtransparent "rules o f the game" for investment, particularly those regarding drinkingwater quality standards, environmental impact assessment, discharge standards, and effluent fees. To correct the deficiencies associated with EIA regulations, new mechanisms might be designed that categorize projects based on the significance and magnitude o f their potential environmental impacts, guarantee adequate public participation, and appraise environmental liabilities. Such regulations should define methodologies for preparing EIAs and for the scope o f environmental management plans. Problems with the water pollution fee system might be addressed by designing a progressive scheme tailored to local conditions. To overcome the obstacles posed by Decree 1594 o f 1984 associated with effluent standards, it is advisable to modify the regulated parameter so that pathogens andtoxic andhazardoussubstances can be controlled. Table 6.24: Summaryof Recommendationsfor ReducingWaterborne DiseasesinColombia Responsiblegovernment Recommendation agencies Design andimplementahygieneprogramthat includes components on handwashing andpoint-of-usedisinfectionof drinking water MSPS, MAVDT, Reformenvironmentalregulatoryframework to removeconstraints on private sectorparticipationinwater supplyand sanitation Congress, MAVDT, DNP Modify EIA regulationsto expeditewater supplyandsanitationworks including the design ofnewmechanismsthat categorizeprojectsbasedon significanceandmagnitudeofpotentialenvironmentalimpacts, and Congress, MAVDT, CARS guarantee adequatepublicparticipation Modifywater pollution fee systemto suit local conditions Congress, MAVDT, CARS Modify law andregulationsonparametersof effluent standards so that Congress, MSPS, MAVDT, pathogensandtoxic andhazardoussubstances areregulated CARS 146 CHAPTER7 IMPROVINGAIR QUALITY Poor air quality is a signwcant problem in Colombia, especially for the three-quarters of Colombians who live in urban areas. Air pollution is associatedwith increased respiratory illnesses andpremature mortality, damage to buildings and vegetation, andpoor visibility. Particulate matter alone is responsible for an estimated 6,000 premature deaths and 7,400 new cases of chronic bronchitis in the country every year. To tackle thisproblem Colombia urgently needs to intens& its efforts to implement a broad strategy for reducing general urban air pollution, particularly fine particulate matter. Introduction 7.1 Air quality problems tend to be most severe inurban areas, where both population andpollution sources, such as automobiles andindustry, are most concentrated.'" InColombia more thanthree-quarters o f the population lives in urban areas, and about one-third lives in cities with more than 1 million inhabitants (World Bank 2005). Increased respiratory illness andpremature mortality are the principal air- pollution-induced health problems inthe country. Inaddition there i s damage to buildingsandvegetation, andloweredvisibility. 7.2 Comparisons between the annual mean concentrations o f PMlo in Colombia's main cities and those o f other urban centers mustbe made with caution, due to the complexities and challenges associated with the measurement of these pollutants. Inmany cases, the cities have a monitoring network in which concentrations vary widely from one station to another or from one time period to the next, andthus the mean value may not accurately reflect the severity o f air pollution. However,, a first approximation suggests that PMlo concentrations in Bogotd are similar to those o f other Latin American cities with severe air pollution, including Mexico City and Santiago. The differences in mean PMlo concentrations are much more obvious when compared with those o f cities outside the region. Cities such as Los Angeles, Rome, or Tokyo have successfully reduced their ambient concentrations to a level that is lower thanthoseofMedellinandBucaramanga (Figure 7.1). 7.3 Although several major pollutants, including ozone, are o f concern in urban areas, the most serious health effects are caused by respirable particulate matter o f less than 2.5 microns (PM2.s). Pollution from particulate matter i s responsible for an estimated 6,000 premature deaths and 7,400 new cases o f chronic bronchitis every year (Larsen 2005). Air pollution in Colombia contributes to about 13,000 hospitalizations and 255,000 emergency room and outpatient visits to hospitals each year (Table 7.1). 7.4 As detailed in Chapter 5, the mean estimated annual health cost o f urban air pollution from particulate matter (PM) alone is about C$1.5 trillion, or 0.8 percent of GDP. About 65 percent o f the cost i s associated with mortality, and 35 percent with morbidity. Because P M has the greatest health and economic impacts it is the main focus o f this chapter. RichardMorgenstern and Emesto Shnchez-Triana authored this chapter, which draws heavily from background documentspreparedfor this study by Blackman and others (2005); Brugman(2004); andLarsen (2005). 147 Figure7.1: MeanAnnual Concentrationof PMloinCities PM,, AverageAnnualConcentrations(pg/m3) I 80' 70.' 60 -' 50-' 40-' 30-' 20 -' lo-` 0-e Source: Word Bank (2005b). Table 7.1: EstimatedHealthImpactof UrbanAir PollutioninColombia Annual imvacts Health categories New cases TotalDALYs Prematuremortality 6,040 45,300 Chronic bronchitis 7,410 16,300 Hospital admissions 12,970 210 Emergency roomvisitdoutpatient hospital visits 255,000 1,150 Restricted activity days 42,000,000 12,640 Lower respiratory illness inchildren 585,000 3,800 Respiratory symptoms 135,000,000 10,100 Total 89,500 DALYs=Disability-adjusted life years. Source: Larsen (2004). 7.5 More than 80 percent of national costs from P M are concentrated in only four departments and the Bogoth capital district. Bogoth alone accounts for 50 percent o f national costs, which is equivalent to nearly 2 percent of Bogoth's GDP, or nearly 3 percent of GDP if the cost of mortality is based on the value of statistical life (VSL) approach (Larsen 2005a). 148 7.6 This rest o f this chapter will examine the existing legal andregulatory framework for air quality management, the performance o f that framework, the range o f potential interventions to control air pollution, the costs andbenefits o f interventions to control emissions from mobile sources in Bogoth, and conclusions andrecommendations for improving air quality inC~lombia.'~' Air Quality Management Legal Framework 7.7 The framework for Colombia's air quality management system originated in Law 2811 o f 1974, the National Code for Renewable Natural Resources and Environmental Protection. That code did not include specific regulations for air pollution control, but Article 75 specifiedthat the national government should approve regulations to prevent air pollution. Consequently, Law 9 o f 1979 (the "Sanitary Code") defined the general criteria for further development o f regulations related to the management and control o f wastes, effluents, and emissions that could affect humanhealth. The Sanitary Code was prepared by the Ministry o f Health and led to preparation and approval o f Decree 2 o f 1982, which defined national ambient standardsfor five air pollutants-total suspended particulates (TSP), sulfur dioxide (SO*), carbon monoxide (CO), nitrogen oxides measured as nitrogen dioxide (NO$, and ozone ( 0 3 ) .These standards, determined by the Ministry o f Health and the Department o f National Planning, were developed without public participation because participatory mechanisms were very limited at the time (Universidad de Los Andes 2004). 7.8 Prior to 1993, the key authorities responsible for air quality management in Colombia were the national and local health authorities, while in Bogoth the Department o f Transportation was responsible for controlling air pollution emissions generated by vehicles (Universidad de Los Andes 2004). Law 99 o f 1993, which created both the Ministry o f Environment (Ministerio del Medio Ambiente, MMA) and the National Environment System, transferred responsibility for air quality management to environmental authorities. 7.9 MAVDT is responsible for issuingall environmental legislationrelatedto air quality or emissions generated by every type o f source (fixed, mobile, or nonpoint). The CARs or AAUs are in charge o f implementing or complying with these norms. Nevertheless, the CARs and AAUs can, under the subsidiary principle considered in Law 99 of 1993, issue more stringent requirements that are initially temporary (for two months), and the Ministry, through an evaluation presented by the CARs or AAUs, can make them permanent inaccordance with the requirements andparameters established inDecree 948 o f 1995 (MAVDT, 2006:7). 7.10 Based on Law 99 o f 93, Decree 948 o f 1995 established the first standards for fuel quality andfor emissions from mobile and nonpoint sources. Decree 948 was followed by a series o f additional decrees and resolutions, described in Table 7.2, which regulated emissions from both mobile and stationary sources. lo'According to MAVDT (2006:7),"air quality modeling for Bogoki.. .indicates that.. .the air quality problems associated with particulate matter (PMlo) stem from fixed sources (65%) and mobile sources (35%). Recent studies from the University o f Los Andes indicate that, if only the problem o f sulfur content in diesel fuel used in the country is analyzed, in the best cases 50% would stem from fixed sources and 50% from mobile sources, without taking into account an analysis o f the fuels used in the industrial sector such as coal and fuel oil which have sulfur contents that are greater than that o f vehicle diesel. It should also be taken into account that the automotive park in Bogoth is made up o f approximately 92% gasoline vehicles and only 8% diesel vehicles." 149 Table 7.2: Developmentof NationalNormsonAir Pollutant Emissions,1995-2002 Decree or resolution Regulation or requirements Decree 948 (1995) Structures the legal framework to be developed for air, not only with respect to emission standards for mobile sources but also for fixed, dispersed, and nonpoint sources, the development o f intake emission norms and the mechanisms for their monitoring and oversight, fuel quality guidelines for developing standards on noise and odors, functions of environmental authorities, permits and licenses, public participation, and penalty rulings. In general, it establishes the policy framework for developing measures to prevent and control atmospheric pollution andto protect air quality (MAVDT2006:7). Decree 2107 (1995) Relaxes some restrictions on heavy oils, controlled burning, and the time required to adopt cleaner technologies to protect the atmosphere (issued in Decree 948-1995). Establishes regulations on diesel vehicles, emissions by mobile sources, and requirements for emissions permits. Res. 898 (1995) Regulates environmentalcriteria for quality o f solid andliquidfuels used incommercial and industrial kilns andboilers and inmotor vehicle engines. Regulates quality o f liquidfuels, gasoline, and diesel. Regulates quality of mineral coal usedinkilns andboilers. Establishes maximum sulfur content o f 1.7% byweight for industrial fuel oil. Res. 1351 (1995) Adopts FormIE-1(Industrial Emissions), also called the "Report o f the State o f Emissions," to be filled out and presented to the competent environmental authority by emissions producers or their legal representatives. Res. 005 (1996) Includes a glossary o ftechnical definitions, general regulations for emissions, procedures to measure emissions, requirements for operation o f measuring equipment, certification for mobile emission sources, mandatory verification process, and monitoring o f diagnostic centers. Partially modifiedby Resolution 909-1 996. Res. 378 (1997) Establishes the characteristics for emission certification tests for car manufacturers and importerso f vehicles. Res. 619 (1997) Determines the factors for grantingpermits to nonmobile emission sources. Decree 1228 (1997) Requires importers o f vehicles and vehicle assembly kits to present an Emissions Certification by Dynamic Test that is approved by the Ministry o f Environment as complying with emissions requirementsbyvehicle weight. Decree 1697 (1997) Loosens Decree 948 by establishing new regulations for burningused lubricant oils andfor sulfur content and other polluting substancesinfuels. Res. 0415 (1998) Relaxes Decree 948 and establishes specific requirements for oil combustion based on source, usage, and concentrations. Establishes procedures to issue emissions permits and require users to keep a log that includes information on the used oil provider, source o f the oil, volume and proportion o f the oil used in the mixture, and type o f fuel used in mixture withthe usedoil. Res. 0623 (1998) Modifies Resolution 898-1995 regarding quality o f solid and liquid fuels used in commercial and industrial kilns and boilers and establishes new parameters on coal quality and mixtures used as fuel. Res. 1048 (1999) Establishes limits on pollutants emitted by mobile sources with diesel and gasoline engines, based on dynamic tests, for vehicles built after 2001. Res. 0970 (2001) Establishes emissions limits when pesticide containers are incinerated in kilns or cement factories. 150 Decree or resolution Regulation or requirements Res. 058 (2002) Establishesrequirementsfor maintenance and control o f solid and liquidwaste incinerators and sets emission limits basedon: Average daily andhalf-hourly concentrationsper contaminant. Concentrations ofheavy metals. Concentrations of dioxins and furans. Res. 0886 (2004) Relaxes emission time limits and maximum emission restrictions, clarifies and distinguishes operating limits and characteristics (particularly temperatures and chambers) for incineration plants according to loadsandfor crematory ovens. Res. 1446(2005) Modifies Resolution 415 of 1998, establishing conditions for the use o funtreated, used oil as fuel and the specifications and conditions under which treated, used oil can be used, for which a specific degree of treatment and quality standards (particularly concentrationsofheavy metals) should be compliedwith. Key Pollutants and Monitoring Systems 7.11 Key sources o f air pollution include stationary point sources such as factories and power plants; mobile sources that consist almost entirely o f exhaust from vehicles; and nonpoint sources that include agriculture, construction, and emissions from the residential andcommercial sectors. 7.12 Particulate matter is the term for airborne particles, including dust, dirt, soot, smoke, and liquid droplets. Particles can be suspendedinthe air for long periods o f time. Some particles are directly emitted into the air. They come from a variety o f sources such as vehicle exhaust, factories, construction sites, tilled fields, unpaved roads, stone crushing, and burning o f wood. Particles also can be created by atmospheric conversion o f SO2 and NO, into sulfates and nitrates. Most measurements o f particulate matter in Colombia are o f total suspended particles (TSP). Only Bogotb has monitoring stations that measure PMlo, which can be inhaled into the lungs and lead to respiratory illness associated with premature mortality. Despite strong scientific evidence that elevated concentrations o f PM2.5pose an even greater health risk than PMlo, no systematic monitoringinformationon PM2.5is available inColombia.106 7.13 Sulfur dioxide (SO4 is a by-product o f burning fossil fuels such as crude oil and coal. Increased use o f lower sulfur fuels for energy generation appears to have reduced SO2concentrations in Colombia over the past two decades (Universidad de Los Andes 2004). SO2 is a stinging gas that causes respiratory ailments inhumans and, as noted earlier, can be transformed inthe atmosphere into sulfates that appear as fine particles. Inmoist environments, SO2 emissions result inacidification andwinter smog.'07 7.14 Nitrogen oxides (NO,) also contribute to respiratory ailments inhumans. They result from vehicle exhaust, combustion installations such as power plants, and industrial and agricultural activity. Nitrogen oxides react with other air pollutants to form ozone and fine particulates (nitrates) in the lower IO6 Information from MAVDT (2006:8) indicates that in"Bogoth all stations operateon the basis o f PMlo equipment (There are 11 stations, 9 with PMlo and 2 with PMlo and TSP), while in Medellin they are based on TSP (of 18 stations, 1has PMlo, 2 have TSP andPMlo, andthe remaining 15 have only TSP), inCali stations are basedon PMlo (8 stations), in BucaramangaPMlo (3 stations), in Barranquilla PMlo (3 stations), in CORNARE PMlo (3 stations), inCaliPMlo (3), inCucuta TSP andPMlo(of 5 stations, 4 havePMloand 1hasTSP andPMl& inSantaMartaTSP (of 10 stations, 8 measure TSP and 2 TSP and PMlo), inPereira PMlo (4), in Cundinamarca PMlo (of 11 stations, 5 have PMlo and 6 have PMlo and TSP)." lo' According to data from MAVDT (2006:8) "SO2 is a by-product o f the combustion o f fossil fuels.. .such as motor diesel (mobile sources) and fuel and crude oils and coal inthe industrial sector (fixed sources); the latter with higher sulfur contents, inthe order of 1.7% inweight, comparedwith vehicle diesel that actually is around0." 151 atmosphere and also contribute to acidification processes. The use of catalyzers in car exhaust systems canreduceNO, emissions from motor vehicles. 7,15 Volatile organic compounds (VOCs) encompass various contaminants, including, organic compounds and solvents. These compounds are emitted from petroleum reservoirs, storage systems for gasoline and other volatile compounds, industrial processes and fuel combustion, use of paints and cleaners, and agricultural activities. VOCs are the main cause of smog in the lower atmosphere. They reactwith other chemicals inthe atmosphere to create harmfulsecondary pollutants, includingozone, and causehealth problems rangingfrom eye irritation to decreasedlungcapacity and even cancer. 7.16 Carbon monoxide (CO) is a product of incomplete combustion of fuels. CO binds to hemoglobin intheblood, preventingthe transportofoxygento vital organs. 7.17 Colombia has a fairly long history of air quality monitoring. During 1967-75 the Pan American Health Organization (PAHO) andthe Ministryof Health set up andoperatedsystems to monitor TSP and SO2in several cities, including Bogotb and Medellin. These programs were taken over fully by the Ministry of Healthin 1974.More monitoring stationswere set upinmany locations inresponse to Decree 2 of 1982. Inthe case of Bogotb, the Departmentof Health installed and operated 12 monitoringstations during 1983-91. During 1990-93 the Japan International Cooperation Agency (JICA) financed the installation andoperation of five additional monitoringstations. The data generated by these stationswere usedextensively by the Ministry of Healthto control air pollution inthe most important urbancenters. 7.18 Law 99 of 1993 removed all responsibility for air pollution control from the Ministry of Health andthe Secretariats ofHealth. As a result, during 1993-97 there were no air quality monitoringnetworks in operation in Colombia. In 1997 the AAU for Bogotb (the Departamento Administrativo del Medio Ambiente, DAMA) installed a new network of 12 stations that monitored a range of pollutants, including PM2.5, PMlo, the five pollutants specified in Decree 2 of 1982, and others. However, PM2.5 was only monitored until 1999, when the equipment was damaged andnot replaced. The story is somewhat similar inMedellin, with the installation of seven stations by the Departmentof Healthin 1983. These stations were replacedby a new system inthe late 1 9 9 0 ~ ~ composedof 18 stations inthe Aburra Valley with the Table 7.3: Air Oualitv Standards: Decree 02 of 1982 Pollutant Limit Observations Total suspendedparticles 100 pg/m3 ~ n n u ageometricaverageofall daily samples l (TSP) 400 pg/m3 Maximumdaily concentration,exceededonly onceayear Suspendedparticles(PMlo) No separatelimitestablished Sulfur dioxide (SO*) 100pg/m3 h u a l arithmetic averageofall daily samples 400 pg/m3 Maximumdaily concentration,exceededonly once ayear 1,500 pg/m3 Maximum3-hour concentration,exceededonce ayear Carbonmonoxide(CO) 15mg/m3 Maximum8-hour concentration 50 mg/m3 Maximum 1-hourconcentration Nitrogendioxides(measured 100pg/m3 Annual arithmeticaverageofalldaily samples as Nod Photochemicaloxidants 170pg/m3 Maximum 1-hourconcentration,exceededonce ayear (expressedas 03) Source:Sinchez-Triana(1995). 152 capacity to measure PMlo and the five pollutants noted in Decree 2 o f 1982. However, the operation o f this newest network has been interrupted several times due to legal issues andproblems associated with calibration o f equipment, resulting ininformation voids (Universidad de Los Andes 2004). Air Quality Standards 7.19 Table 7.3 shows the maximum annual, daily, and hourly ambient concentrations for TSP, SOz, COY03,and NO2 established in Decree 2 o f 1982, which are still in effect today. Limits refer to continuous samples taken over a specific period (1, 3, 8, or 24 hours). The annual limit allows for days with higher concentrations as long as the annual average concentration does not exceed the specified levels. Similarly, concentrations can exceed the daily or hourly limits as long as the overall concentration for the day or hourperiodspecified is below the level. 7.20 In Bogotb, DAMA issued Resolution 1208 of 2003, which established more stringent requirements or shorter averaging periods for a number o f pollutants and, most important, introduced a formal standard for PMlo. For the purpose o f measuring air quality, DAMA divided the city into five sectors served by a total o f 14 stations with air quality monitors that have been inoperation since 1997. Rules for monitoring and standards for concentration levels are included in DAMA Resolution 391 o f 2001. The standards in effect in 2003, along with future requirements for 2006 and 2010, are shown in Table 7.4. Table 7.4: Standards for Air Quality inBogotP, DAMA Resolution 1208 of 2003 Limit (pg/m3) Pnllutinp agent Period Descriution 2003 2006 2010 8 hours Average hourly concentrationfor 8 hours 12,000 11,000 10,000 ~Carbonmonoxide (CO) 1hour Average hourlyconcentration 40,000 40,000 40,000 Sulfur dioxide (SOz) Annual Arithmetic average ofthe average daily 80 70 60 concentrations for 365 days 24 hours Average hourly concentrationfor 24 hours 350 325 300 3 hours Average hourly concentrationfor 3 hours 1,400 1,350 1,300 Nitrogendioxide Annual Arithmetic averageofthe averagedaily 100 100 100 (Nod concentrations for 365 days 24 hours Average hourly concentrationfor 24 hours 220 180 150 1hour Average hourly concentration 320 320 320 Ozone( 0 3 ) 8 hours Average concentrationfor 8 hours 130 110 100 1hour Average hourly concentration 170 155 150 Total suspended Annual Geometricaverageofthe average daily 100 85 80 particles(TSP) concentrationsfor 365 days 24 hours Average hourly concentrationfor 24 hours 400 300 300 Particulatematter Annual Arithmetic averageofthe averagedaily 80 55 50 (PMio) concentrationsfor 365 days 24 hours Average hourly concentrationfor 24 hours 180 155 150 I 7.21 InBogoth, DAMAissuedResolution 1208 o f2003, which establishedmore stringent requirements or shorter averaging periods for a number o f pollutants and, most important, introduced a formal standard for PMlo. For the purpose o f measuring air quality, DAh4A divided the city into five sectors served by a total o f 14 stations with air quality monitors that have been in operation since 1997. Rules for monitoring 153 and standards for concentration levels are included in DAMA Resolution 391 of 2001. The shdards in effect in2003, along with future requirements for 2006 and2010, are showninTable 7.4. Stationary Source Controls 7.22 Emission standardsestablished under Decree 02 o f 1982 govern the volume and concentration o f particulate matter, S02, andNO2that may be emitted to the outside air through a duct. They also establish minimum allowable stack heights. Particulate matter is classified according to the type of activity involved: a Coal-fired boilers a Cement industry, including kilns (where clinker is produced), mills (where clinker is crushed), andclinker coolers a Metallurgy industry because it uses induction kilnsand electric arc furnaces a Asphalt factories a Incineratorso f all waste types (domestic, industrial, special, andhazardous). 7.23 With respect to boilers, the allowable stack height depends on the location (rural or urban). The minimumheight is 15 meters. The volume of allowable emissions is based on energy consumption. The standard is stated in kilograms o f particles per million kilocalories of energy consumed per hour. The emissions standardsestablished for boilers inDecree 02/1982are still ineffect today. 7.24 Regarding the cement industry, allowable emissions for clinker kilns depend on output. That is, the standard is stated interms o f particulate matter per tons o f cement produced. The minimumheight o f the chimney is 30 meters. 7.25 There are specific controls on emissions for some activities. For example, allowable emissions from the production o f sulfuric acid (H2SO4) are stated interms o f S02, SO3, andH2SO4per ton o f output andthe minimumstack height is set at 25 meters. Article 79 o f the Decree contains specific controls for boilers, kilns, and other combustion processes that generate SO2emissions. While Article 79 does not limitthe concentration of SO2 emissions, it doesgovernstack height accordingto the sulfur content ofthe fuel. Similarly, Chapter VI o f the Decree governs emissions o fNO2 from the production o fnitric acid. 7.26 Resolution 58 o f 2002 and Resolution 0886 of 2004 regulate emissions from incinerators that burn any of a wide range o f wastes, including wastes containing polycyclic aromatic hydrocarbons such as polychlorinated biphenyls (PCBs), pentachlorophenol, nonexplosive liquid or solid wastes, additives for lubricant oils, wood treated with halogenated compounds, domestic waste, residues from petroleum refineries and naphtha production, medical waste; and any other waste indicated by the Ministry o f Health."' 7.27 Although detailed information about compliance is not available for these standards, it is widely believedthat noncompliance is a serious problem. According to Blackman andothers (2005), inthe case o f lo'Resolution 058 does not permit the incineration o f pesticides, except intrace amounts. The resolution applies to the incineration of "liquid and solid wastes containing polychlorinated aromatic hydrocarbons such as polychlorinated biphenlys (PCBs), chlorinated hydrocarbon pesticidesor pentachlorophenol (PCP) less thanor equal to 50 mgikg. Higher concentrations are prohibited." According to MAVDT (2006:8), the Ministry "has not authorized the thermal treatment of these wastes inthe clinker ovens o f cement industries which have temperatures greater than 1500°C andresidencetimes inthe order of 5 seconds (inaddition, the incinerationof containers is only authorized on the condition that they are triple washed)." This same condition is maintained under Resolution0886 of 2004 which modifies Resolution 058 o f 2002. 154 incinerators, informal interviews with industrial experts undertaken by Resources for the Future (RFF) suggest that the combination o f stringent technical standards and siting problems may be an important deterrent to compliance. However, MAVDT (20069) considersthat the standardsestablished inthe country for incinerators are similar to those establishedby the EPA andthat some parameters (such as dioxins and furans) are more flexible (they give time limits o f 10 years to comply with standards that in some cases are more lax thanthose o fthe EPA), andthat compliance is economically andtechnically feasible. Mobile Source Controls 7.28 Based on studies conducted by Fedesarrollo (Perry and others 1990; Perry andothers 1992) anda study conducted by the Colombian Petroleum Company (Ecopetrol 1992), the National Department of Planning decided, in 1994, to phase out leaded gasoline. This decision marked the most notable advance to date inthe history o f air pollution control inColombia. 7.29 Resolution 005 o f 1996 regulates H C andCO emissions from gasoline vehicles andthe opacity o f emissions from diesel vehicles, measured via static tests (idling or running). Inaddition, it includes HC, CO, and NOx emission standards for dynamic testing and vehicles imported since 1997 (modified by Resolution 1048 o f 1999). These standards apply to all types o f vehicles: public andprivate, automobiles, buses, and trucks (MAVDT, 2006:8). 7.30 Inthe 1990sDAMA (BogotA) andDepartamentoAdministrativo de Gestidndel Medio Ambiente (DAGMA)(Cali) established environmental vehicle control programs. Requirements were established for vehicles to undergo a periodic emissions test. Emission certificates are issued at specialized diagnostic centers (CDRs) to vehicles that pass the emissions test. If the vehicle does not pass the test, the owner must perform the required adjustments to the engine. Audits of the CDRs are conducted periodically to determine ifthe proper procedures are beingfollowed. 7.31 In some cities, mobile brigades have been introduced to check vehicles for current emissions certificates. Bogoti introduced a "day without my car" program on a pilot basis in which on one designated day each year private vehicles (excluding buses or taxis) are banned from city streets. 7.32 In addition to tailpipe standards, fuel quality is a major contributor to mobile source emissions. Table 7.5 shows standards for the sulfur content o f gasoline and diesel. InBogoti, with the introduction into service o f the Transmilenio System, a new type o f fuel called "diesel extra" with a sulfur content o f 1,200 parts per million(ppm) was introduced for use inbuses (Resolution 068 o f 2001). Table 7.5: Regulation of Sulfur Content in Gasoline and Diesel Fuels Sulfirr content (ppm) Resolution (Ministry of Environment) Gasoline Diesel Diesel extra 898 of 1995 1,500 6,000 068 of2001 1,000 4,500 1,200 7.33 Resolution 1565 o f 2004, issued by the Ministry o f Environment, Housing and Regional Development (Ministerio de Ambiente, Vivienday DesarroIIo Territorial, MAVDT) and the Ministry o f Miningand Energy, postponed untilJuly 1, 2008 the requirement that the sulfur content of all gasoline and diesel in Colombia be reduced to 500 ppm or less. To meet this new standard Ecopetrol plans to modernize the Cartagena refinery and implement a new hydro-treatment program at the Barrancabermeja refinery. Ifthose modernizationplans are not completed ontime, fuel imports may have to be increasedto meet the new standard. Finally, efforts are underway to further increase the availability o f natural gas and encourage its use as a transportation fuel, especially inthe largest urbancenters. 155 Fuel Subsidies 7.34 Historically, the price o f fuels in Colombia has been controlled in line with domestic production costs rather than international prices. These price controls have in effect subsidized domestic fuel consumption, thereby exacerbating congestion, air pollution, andhealthandenvironmental damage. Inthe 1990s several studies (Perry and others 1991; Perry and others 1993; McConnell and Uribe Botero 1996) estimated that gasoline prices were about 30 to 35 percent below international levels. Diesel prices are reportedly even further below international levels. 7.35 The current policy is to reduce future demand for fuel in the transportation sector by bringing local prices o f gasoline and diesel into line with international prices by 2006 through annual adjustments o f about 15 percent in2005 and2006. One study has estimated that this policy would reduce demand for transportation fuels by 8 percent relative to 2002 levels (Brugman 2004). Corresponding reductions in emissions o f PMlo, SOX,andNOxare estimated to be about 2.3 percent in 2005 and 7.7 percent by 2020. In addition, a 20 percent local surtax on gasoline has beenintroduced as part of the Transmilenio mass transit system, with half o f the revenues (mostly paid by private vehicles) used to support Transmilenio while the other half is earmarked for road maintenance andrelated activities. 7.36 Currently, about 15 percent o f the 7 million daily trips by public transportation in Bogotb are made on Tran~milenio.'~'Transmilenio uses high-capacity buses that travel at an average speed o f 27 kilometers per hour along 56 kilometers o f exclusive corridors, For each new bus added to the Transmilenio system, seven old buses are destroyed. As part o f the Transmilenio system, extensive bicycle paths also have beenconstructed throughout the city. Table7.6: EmissionsReductionswith MassTransportationSystems, 2004-20 Pollutant (tons) Pollutant (jercent) Year PMlo SOX NO, Total PMlo SOX NOx Total Avg emissions, 36,067 2001-03 108,017 237,961 382,045 100 100 100 100 Reduction 2004 684 443 2,820 3,947 1.9 0.4 1.2 1.o 2005 1,500 1,014 6,124 8,638 4.2 0.9 2.6 2.3 2010 2,480 1,528 12,183 16,192 6.9 1.4 5.1 4.2 2015 2,296 1,643 12,550 16,488 6.4 1.5 5.3 4.3 2020 2,333 1,750 14,124 18,207 6.5 1.6 5.9 4.8 Note: IncludesBogoti, Medellin,Cali, Bmanquilla, andPereira. Source: Brugman(2004). 7.37 One study evaluated the reduction o f emissions associated with mass transportation systems in Bogotb, Medellin, Cali, Barranquilla, andPereira (Brugman 2004). According to this study, these systems are expected to reduce emissions o f PMlo, NOx, and SOx caused by mobile sources by an estimated 7.2 percent, 2.6 percent, and 0.9 percent, respectively, in 2005, and by 6.5 percent, 5.9 percent, and 1.6 percent, respectively, by 2020 (Table 7.6). Unfortunately, no specific data are available on the air quality effects o f Transmilenio. However, the diesel extra used by the Transmilenio buses does have a lower sulfur content. lo' http://www.transmilenio.gov.co. See 156 Nonpoint Sources 7.38 Although a considerable number o f nonpoint sources contribute to the degradation o f air quality inColombia, most attention has focused on the practice ofburningsugarcane fields at certain stages of the cultivation cycle, which can cause serious air pollution problems. Efforts have been made to restrict burning and reburning in populated areas. For example, the Regional Autonomous Corporation for the Cauca Valley (CVC) has reached a voluntary agreement with the association o f sugarcane farmers for them to use the so-called "green cut" method"' for harvestingcrops within 1,000 meters o f urban areas, 30 meters from villages, 80 meters from highways, and30 meters around high-tension transmission lines. 7.39 According to MAVDT (2006:8), the "sugarcane sector has been working for almost 10 years on the mechanization o f crops andtheir development, usingscientific studies and knowledge of atmospheric conditions to create mechanisms that minimize the impact o f the practice o f burning the sugarcane fields, which are the circumstances under which the Ministry issued Resolution 1565 of 2004 establishing the conditions and measures necessary to promote this practice. While the impact o f this burningcannot be denied, medical studies by the Colombian Pneumological Foundationhave not found greater impacts than those o f other activities, aside from `the serious problems' o f air pollution." Performanceofthe Air QualityManagementSystem 7.40 Informationavailable on the performance o f Colombia's air quality management system falls into two general categories: process measures and outcome measures. Process measures are specific actions undertaken with the goal of improving air quality, such as the number o f vehicles inspected or the number o f hectares o f sugarcaneharvested through green cuts. Outcome measures are more direct indicators o f air quality. The most direct outcome measures are ambient concentrations o f fine particles or other major pollutants, calculated on a daily or annual basis. Despite the obvious limitations, emissions also are treated as outcome measureso fthe air quality management system. Emissions by Pollutant 7.41 Air quality regulations have been ineffect insome form for over two decades inColombia. The Institute o f Hydrology, Meteorology, andEnvironmental Studies (Instituto de Hidrologia, Meteorologia y Estudios Ambientales, IDEAM) has developed a number o f baseline indicators. The methodology underlying these indicators has beenusedto develop national estimates andto assist with the management o f urbanair quality throughout the country. 7.42 Emission estimates are based on a fairly standard formulation that relies on emission factors rather than monitoringdata.'" Information on economic activity is derived from the yearly manufacturing survey o f the National Administrative Statistics Department (Departamento Administrativo Nacional de Estadisticas,DANE). Emission factors are taken from various sources including the Industrial Pollution Projection System (IPPS), the Intergovernmental Panel on Climate Change (IPCC), the United States Environmental Protection Agency (USEPA), and the European Union's emission inventory program (CORINAIR). Emissions estimates cover 232 municipalities included inDANE'Smanufacturing survey, `lo Greencut refers to usingmanualor mechanicalmethodsto remove sugarcane insteadofburning out the fields for planting. 111 Ei=T{(q*FE,)*(l-R,) } j=l where E = atmospheric emissions; P = parameter associated with the economic activity in terms of number of employees, productionvolume, andproduction's value or aggregatedvalue; FE= emissionfactor; R=coefficient of reductionof emissions; i=type ofpollutingagent measured; andj =type ofeconomic activity. 157 but only include industries withmore than 10employees and/or outputs valued at C$70.5 millionor more per year (1999 values). Thus, brick kilns and other small firms-which may be large sources o f emissions-are typically excluded. 7.43 Although the preferred approach for aggregating emissions across pollutants is on the basis o f economic damages imposed by the emissions, a simple aggregation on the basis o f total tons can reveal patterns about emission sources. For example, Bogotb clearly tops the list in terms o f total (aggregate) tons o f particulate matter emitted. However, the municipality o f Nobsa, with a population o f less than 10,000, has higher emissions than many large cities such as Pereira, because o f its relatively high concentration o f artisan brick kilns, cement andsteel factories. The highest aggregate level o f sulfur oxide emissions is found in cities with a large number o f power plants or other industrial facilities burning biomass, coal, or high-sulfurfuel oil. 7.44 It is also useful to look beyond the legal boundaries of cities and examine emissions in the broader context o f urbanandindustrial centers. Such an examination shows that there are sometimes large differences, measured intons o f pollution, between emissions from within the municipal boundaries and those from the larger urbanand industrial centers. For example, stationary emissions o f particulate matter inthe industrial corridor ofCali-Yumbo arehigher thanofthose fromthe city ofCali itself. 7.45 More detailed information is available for selected areas. A study by the Universidad de Los Andes (2004) found that in Bogoth particulate matter emissions from stationary sources grew by 182 percent during 1989-99, with industrial kilns and furnaces-including many small and medium enterprises-accounting for three-fourths o f the emissions from these sources. According to the study, the principal fuels used in the manufacturing sector in BogotA are diesel (44.9 percent), crude oil (24.7 percent), and coal (7.5 percent). In Medellin and the 10 surrounding municipalities that form the metropolitan area o f the Aburra Valley, the mainpolluting industries are paper, cement, brickmaking, and steel, and the key energy sources are hydroelectric (16.6 percent), diesel (12.2 percent), coal (49.2 percent), and crude oil (22.1 percent). 7.46 Unfortunately, environmental regulatory agencies generate very little information about compliance by stationary sources o f emissions. However, the 2004 Universidad de Los Andes study shows that in Bogotb 2,372 permitted facilities self-report their emissions on an annual basis and that DAMA audits a group of 70 randomly selected facilities. In2003, these facilities recordeda 63 percent compliance rate with national air emission standards (Decree 02 o f 1982) and a 41 percent compliance rate with the local standards (Resolution 391 o f 2001). InMedellin, 160 random inspections o f industries were conducted in 2003, covering about 30 percent o f all industrial establishments, according to the study. Inaddition, 53 inspections were conducted inresponse to public complaints. However, information on the degree o fnoncompliance is not available. Ambient Monitoringfor Select Areas 7.47 Incontrast to emissions, which reflect the amount of pollution entering the atmosphere, ambient informationreflects the quality of air to which people are actually exposed. While COY0 3 ,NOx, VOCs, and TSP are all associated either directly or indirectly with respiratory or other health effects, the strongest epidemiological link between air pollution and premature mortality is through elevated concentrations of PMlo. Given that an estimated 6,000 premature deaths in Colombia result each year because o f elevated PMtoconcentrations (Larsen 2004), it is appropriate that a review o f the monitoring data should focus on ambientconcentrations ofthis pollutant. 158 7.48 Bogotb and Cali are the only cities with ambient PMlo standards. Unfortunately, only limited monitoring data are available to measure compliance with these standards. There are about 70 air quality monitoring stations in Colombia (Kojima 2004). Most o f them track TSP, a few monitor PMlo, andnone monitor PM2.sregularly. There are no nationwide specifications for monitoring equipment or operating procedures, Automated instruments are used only inBogotb, Cali, Bucaramanga, andBarranquilla, while manual or manuallautomatedcombinations are usedinother areas. Various technical problems have been reported related to the operation and maintenance o f the automated instruments, which rely on sophisticated electronics."' Further, the data that are collected are not analyzed at a central level. Concerns also have been raised about the location o f the monitors, specifically, that they exclude likely "hot spots." Reportedly there are plans to relocate some stations. 7.49 Notwithstanding the many technical issues surrounding the quality o f data on ambient air quality, Table 7.7 displays the available monitoring results for annual PMlo concentrations in Bogotd and other selected urban areas from 1998 to 2004. In Bogot4, monitoring stations are distributed throughout the city. In most other urban areas, monitoring is more limited. For example, in Bucaramanga there reportedly is only one monitoring station. 7.50 Overall, virtually all citywide estimates (except San Nicolbs Valley) and most individual monitoring sites report annual PMMconcentrations in excess of the 50 pg/m3standardestablished by the USEPA. Since the standards in Colombia are much less stringent than 50 pg/m3,not all these results are counted as violations. For example, in Cali the current annual standardis 70 &m3, andwhile the PMlo standardin Bogotb will be tightened to 50 p.g/m3in 2010 (see Table 7.4), currently it is only 80 pg/m3. Four o fthe monitoring stations locatedinthe industrial areas o f Bogot4 (Corpas, Carrefour, Fontibbn, and Merck) recordedannual averageswell inexcess o f the local standard. 7.51 Among the other cities with reported monitoring information, Medellin and Barranquilla report annual averages above 60 pg/m3,as do two o f the stations inYumbo. The Bucaramanga andPalmira sites all report annual averages below 60 pg/m3. 7.52 Although it is difficult to make a strong statement about trends in air quality based on such a limited time series, a roughassessment o f the available informationcan be made. The results are reported as up or down arrows on the right-handside o f Table 7.7. Overall, a mixed picture emerges o f the trends inair quality. InBogotithe measuredtrend for the citywide average is favorable, although the reverse is true for the industrial areas o f the city already in violation o f the standards. Given the large increase in vehicles inthe city (estimated by the local Transit Authority to have risenby one-third between 2001 and 2003), the observed improvements in the citywide (average) air quality represent a substantial achievement reflecting, no doubt, the restrictions on vehicle use, improvements inmass transit, increased use o f natural gas, andother policies recently put inplace. 7.53 Insome cities, the dataare more limitedandtrendanalysis ismore problematic. Inother cities the available data are not recent enough to capture the impacts on air quality of certain newly instituted policies, such as the recently established vehicle restrictions inMedellin. "'Lack of funds to perform annual maintenance(including dynamic gas calibrationsystems for diluting concentrated certified gas with zero air), to purchase calibration gases, and to pay for repair service and spare parts has resulted in instrumentsnot operating or collectingdata of questionable quality. Insome cases, such as nonoperationalhydrogen generators for hydrocarbon (HC) analysis, the staff reportedhaving worked on the problem for six months without success (Kojima 2004:1). 159 Table7.7: AnnualAmbient PMlo Levelsin Selected Cities(pg/m3) Region/station 1998 1999 2000 2001 2002 2003 2004 Change Bogota 65 67 60 CADE 71 65 68 52 54 46 Sony 80 79 69 75 74 56 Cazuca 85 75 70 62 65 56 Santo Tomis 32 30 38 33 42 33 MAVDT 49 49 53 42 55 42 Escuela 50 53 Bosque 33 31 32 30 26 Corpas 54 45 42 61 97 92 Carrefour 59 97 89 Fontib6n 93 93 97 Merck 96 92 101 Olaya 64 Bucaramanga 50.8 56.2 57.0 Medellin 59 63 64 Yumbo and Palmira Palmira 43.1 54.1 Yumbo Center (Sta. Station) 30.5 Yumbo Center (Mob. Station) 68 Acopi 70 Barranquilla Agrecon 70* Bibilioteca 96** SanNicolas Valley Salenca 31.6 26.6 32 26.3 32.8 * Hospital 37.8 61.1 41.5 21.7 30.6 4 ZonaFranca 29.8 21.3 24.2 17.6 23.1 ***Meanof 4 February-June 2004 reading(60,90,60,60,80). Mean ofFebruary-June 2004 reading (110,120,50,180,120). Source: Environmentalauthoritiesofselectedregions; for Medellin:UniversidadPontificaBolivariana, Redaire's operatorat Aburra Valley. Daily Pi& Concentrations 7.54 Although maximum average pollutant concentrations allowed over a 24-hour period are higher than average annual limits, compliance generally is more difficult. Limited information is available in Colombia on daily PMlo concentrations, but average monthly concentrations have increased since 1996 accordingto one report (Universidad deLosAndes 2004). 7.55 The pattern of daily PMlO concentrations in Bogoth is roughly similar to the average annual concentrationsshown in Table 7.7, with the highest concentrationsin the western part of the city. This is predominantlyanindustrial areathat includes Merck andFontib6ninSouthwest Bogoth, ClinicaCorpas and Calle 80 inNorthwestBogoth, andCarrefour inthemidwest sectionofBogoth. 160 7.56 In Tolima, an air quality monitoring network began operating in 2004 with stations in the municipalities of IbaguC, Payandt, LCrida, and Espinal. Since the monthly average readings are not strictly consistent with the daily (or annual) standards, it i s impossibleto assess these results. The network is still evolving, and in future years it is expected that the information will be reported in a format consistent with data from other regions. Pollution Abatement Expenditures 7.57 Expenditures on pollution abatement are often used as a measure o f efforts to reduce emissions. Inthe United States andmany other Organisation for Economic Co-operation andDevelopment (OECD) nations, expenditure information is generally available on a comprehensive basis, including snapshot measures at different points in time. Unfortunately, the data available on pollution abatement control expenditures in Colombia are quite limited. There are no consistent national data even for large industrial sectors. Available data are from multiple sources, often with inconsistent definitions. Time series information is virtually nonexistent. Notwithstanding these gaps, it is useful to review the available data for the electric generation andpetroleum refining industries. 7.58 Law 99 o f 1993 mandates that companies that generate electricity from gas, coal, andhydropower allocate 4 percent, 8 percent, and 12 percent o f their investments, respectively, to environmental management programs. At the same time, the power generators transfer an estimated 2 to 3 percent o f their revenues to the environmental authorities in their jurisdictions. These revenues, in turn, are usedto fund reforestation and river basin management activities in the local CARS and Urban Environmental Authorities. If consistently applied to environmental management, these revenues would be considered large, even by internationalstandards. 7.59 Another effort relevant to investments inpollution abatement involves the establishment o fvalue- added tax (VAT) exemptions provided by Law 223 o f 1995. These exemptions were established to allow acquisition o f equipment and associated supplies, national or imported, to be used in the construction, installation, assembly, and operation o f control and monitoring systems for recycling and waste processing and treatment o f sewage andor atmospheric emissions. The value o f exemptions granted during 1997-2003 is displayed in Table 7.8. As shown, the value of the exemptions rose dramatically during 1997-99 but declined inanequally dramatic manner during2000-03. Itis not clear to what extent these changes reflect underlying patterns o f pollution abatement investment versus changes in the administration o f Law 223 o f 1995. According to MAVDT (2006:9), one "of the causes for the decline in the amount o f VAT exemptions authorized in 2001 is the issuance o f Decree 2532 o f 2003, which Table7.8: VAT Exemptionsfor Environmental Investments, 1997-2003 Amount Year (thousand million Colombianpesos) 1997 9.0 1998 47.9 1999 57.8 2000 16.2 2001 11.0 2002 6.6 2003 8.6 Source: Information quoted by General Comptroller o f the Republic in its report, State of Natural Resources and the Environment 2003-2004. 161 established specific definitions and criteria that more clearly delimit the granting o f tax benefits for pollution abatement investments." 7.60 With respect to income tax exemptions, Law 788 o f 2002 specifies that the environmental authority should certify whether a company has the right to deduct, from its annual income, the amount o f its environmental investments made in any given fiscal year. Unfortunately, specific information on the operation o f this provisionis not available. Mobile Source Policies 7.61 Reflecting the large contribution o f vehicle emissions to urban air quality, mobile source programs have been established in major Colombian cities. Some highlights from the program implemented by DAMA inBogotb are listed below (DAMA 2003): 0 Emission certification tests: between October 2002 and October 2003, 615,200 certificates were issued to vehicles that passedemissions tests. 0 Checking motor vehicles for valid emission certificates: 27,411 vehicles were checked in2001, o f which 40 percent had valid certificates. In 2002, 30,120 checks were made, with the same percentage o f valid certificates. In 2003, there were 45,320 vehicle checks and the percentage with valid certificate increased to 60 percent. 0 Audits o f Certified Diagnostic Centers: the performance o f diagnostic centers andtheir compliance with current regulations, procedures, and equipment specifications for issuing emission certificates increased dramatically in recent years. The number o f centers that satisfied the audits increased from only 1.9 percent in2001to 52 percent in2003. 0 Diu Sin Curro: the "Day Without My Car" program bars private vehicles (not including buses andtaxis) from usingcity streets on a specific day once or twice a year. The results for 2001-03 are shown inTable 7.9. The reason for increases on two o f the days is not clear. Although some o f the increase might be explained by weather patterns, they may also reflect greater emissions from diesel-powered buses andtaxis that were usedmore extensively on the days that car use was restricted. 7.62 In Cali, beginning in 1996, DAGMA established an environmental control program for motor vehicles. The results o f the emission inspections in the city during 1997-2003 for gasoline and diesel vehicles are displayed inTable 7.10. Table 7.9: PMloConcentrationson "Day Without M y Car" versus Daily Average Year Percent change in PMIo 2001 +17.0 2002 -6.4 Feb.6,2003 +9.4 Sep. 22,2003 -26.0 Source: D A MManagementReport2001-2003. 162 Table 7.10: EmissionInspectionsof Motor Vehicles in Cali, 1997-2003 ~~ ~~ Inspectionsand approval rates Fuel type, result 1997 1998 1999 2000 2001 2002 2003 Gasolinevehicles 31,291 56,638 79,057 91,474 72,831 67,351 70,102 Approved(%) 81.6 86.4 92.1 94.4 95.5 94.5 96.0 Rejected(%) 18.4 13.6 7.9 5.6 4.5 5.5 4.0 Diesel vehicles 1,040 3,594 5,349 5,793 6,164 6,763 7,85 1 Approved(%) 91.4 90.7 90.4 93.0 93.4 90.6 92.2 Rejected(%) 8.6 9.3 9.6 7.0 6.6 9.4 7.8 Source: DAGMA (2004). 7.63 As shown, the number o f inspections o f gasoline-powered vehicles rose during 1997-2000 but then declined somewhat after 2000. The rejectionrate, however, has declined considerably over the entire period, from a high of 18 percent in 1997 to about 4 percent in 2003. These results were probably influenced by a series o f administrative reforms undertaken in 2001, which reduced staffing levels at DAGMA and the Transit Authorities. For diesel-powered vehicles, which consist mostly of buses and large trucks, a slightly different story emerges. Although fewer in number, total inspections o f diesel- powered vehicles have continuedto increase over the entire seven-year period. Although the rejection rate has varied slightly from year to year, it has generally remainedwithin the range o f 7 to 9 percent. 7.64 While the principal purpose o f the inspection program is to reduce pollution in the urban environment, DAGMA also has a financial interest in the system. As shown in Table 7.11, inspection fees, which increased considerably during 1997-2003, generate significant revenues. These revenues are split betweenthe government andthe participating inspection centers. According to data providedby the Centro de Diagnbstico Automotor del Valle (CDAV), the main vehicle services and emissions inspection center in Cali, there were 346,544 vehicles registered in the city as o f March 2004, o f which 4,405 are official (owned by public entities), 299,745 are private, and 42,394 are for public or commercial use. Some vehicles, including motorcycles and vehicles used in agriculture, are exempt from emissions inspection. Table 7.11: Revenuesfrom Vehicle InspectionPrograminCali, 1997-2003 Fee Revenue (million pesos) Center Year Inspections Total DAGMA (15%) CDAV 1997 11,500 33,126 382 57 1998 14,000 61,715 836 125 1999 15,800 73,255 1,153 173 2000 17,400 97,853 1,694 254 2001 19,000 74,617 1,506 226 41,754 832 208 2002 20,600 32,443 704 132 2003 22,200 50,648 1,1260 268 Other Centers 2003 22,100 5,921 130 32 TOTAL 8,363 1,476 Note: Yearly revenues may not equal the fee times the total inspections because in the CDAV reports some inspections were registeredwith the prioryear's fee. Sources: CDAV, private centers, andDAGMA reports. 163 7.65 Comare, the CAR for the Rionegr+Nare region, has also implemented a system to control emissions from mobile sources by establishing an emissions certificate for vehicles. According to information providedby Cornare's MonitoringUnit, while only 47 percent o f vehicles inspectedpassedthe emissions test in 2001, in 2002 the approval rate increased to 62 percent, and in 2003 the rate was 61 percent. 7.66 A vehicle inspection program has also been introduced in Medellin. During 2002, 150,000 vehicles, representing almost 40 percent o f all vehicles in the area, were inspected. In the first half o f 2003, there was an increase o f 6.2 percent in the number o f inspections compared to the same period in the previous year. Unfortunately, there is no information available on the failure rate o f these inspections. 7.67 In examining the testing programs in place in several Colombian cities, limitations of the test procedures are reported (Kojima 2004). Specifically, the reliance on the one-speed idle test i s largely ineffectual, because the CO andH C emissions from an older gasoline vehicle can be reduced by delaying the ignition timing and increasing the air-to-fuel ratio. This so-called "late and lean" approach has reportedly been widely used to pass the idle test. However, vehicles that pass the test in this fashion routinely fail roadside tests because emissions increase considerably under load conditions. The preferred approach is to test emissions under load, which requires a dynamometer. Unfortunately, no dynamometer- basedtesting is available inC~lombia."~ Fuel Quality 7.68 Refined petroleum products in Colombia are produced at refineries in Cartagena and Barrancabermeja. The sulfur content o f gasoline produced at these refineries i s about 1,000 ppm, while the sulfur content o f regular diesel i s about 4,500 ppm(Brugman2004). "Ecological Diesel" produced in Barrancabermeja has a sulfur content o f 1,200 ppm. Imported gasoline has a sulfur content o f 300 ppm, while imported diesel contains 500 ppmof sulfur. 7.69 The maximumallowed content o f sulfur for all fuels used in Colombia originally was scheduled to drop to 500 ppmby 2002, but the stricter standardwas postponeduntil2004, andpostponed again until July 1, 2008. The main reason for the postponements was that Ecopetrol needed more time to retrofit the Barrancabermeja andCartagena refineries. ' Recent Developments in the Energy Sector 7.70 In 1999 Colombia adopted a policy ofprice liberalization of fuels aimed at equalizing the prices of regular gasoline and diesel with the prices o f imports (using prices in the Gulf o f Mexico as a reference). In addition, an excise tax on gasoline was introduced to generate funds for the maintenance andpavingof streets inurbanareas. 7.71 Although these policies were primarily driven by economic rather than environmental considerations, there are some clear environmental benefits. Specifically, the consumption o f gasoline has shown a downward trend, from 125,300 barreldday in 1994 to 88,612 barreldday in2003. This is due, in part, to the substitution of diesel and compressed natural gas (CNG) for gasoline and to the rise in gasoline prices. Consumption o f diesel fuels, where subsidies are continuing, has increased. In 1994 an average of 50,400 barrelslday were consumed, and in 2003 the average was 69,661 barrels/day (UPME 2005). See Kojima(2004:4-6) for moredetails. 164 7.72 In 1994, national production of natural gas was 400 million cubic feet per day (MMcfd). It was delivered by four isolated systems: the Atlantic Coast, Santander, Huila, and Meta-BogotB. The main producing fields were situated in the department o f L a Guajira (at Ballena, Chuchupa, and fiohacha) and the gas transportation infrastructure was concentrated on the Atlantic Coast with a few minor pipelines in the interior o f the country. There were no connections between the large population centers and main production areas. The amount o fproved andprobable reserveswas estimatedto bebetween 7,544 and 8,800 giga cubic feet (Gcf), equivalent to 50 years' production (UPME2005). 7.73 By the beginning of 1997, the country had a total of 11,468 Gcf of gas inproved and probable reserves, and production (andaverage consumption) reached 579 MMcfd. Transportation o f gas from the coast to the interior was expanded with implementation o f the Mass Gas Plan, the construction o f the Ballena-Barrancabermeja pipeline, and the interconnection o f this line with the other production centers using the Barrancabermeja-Neiva and Cusiana-Apiay pipelines. By the end o f 2003, the country had 4,040 Gcf o f commercial reserves, equivalent to a 22-year supply. With the operation o f the western pipeline in August 1997 and increase in the production capacity in L a Guajira due to the construction o f the secondplatform at the Chuchupa field, the availability o f gas rose from 430 MMcfd to 700 MMcfd. 7.74 With the goal o f increasing the availability o f gas service to the poor, the national government, through the Ministry o f 'Mining and Energy, established exclusive service areas for natural gas distribution in the western, eastern, and central zones o f the country in 1997 and 1998. The Mass Gas Plan helped increase gas use in both the domestic and industrial sectors. In 1994 there were 790,000 gas installations, andby June 2004 there were 3,250,000. This means that nearly 14 million Colombians now have access to natural gas. Table 7.12: Vehicles Convertedto CNG as ofJuly 2004 City Department As of Dec 2003 Jan-July 2004 Total Barranquilla Atllntico 7,673 1,246 8,919 Cartagena Bolivar 2,259 897 3,156 Santa Marta Magdalena 1,452 320 1,772 Monteria Cordoba 892 367 1,259 Sincelejo Sucre 521 143 664 Cali-Yumbo Valle 2,268 1,149 3,417 Tulua Valle 0 145 145 Palmira Valle 0 58 58 Armenia Quindio 192 320 512 RiohachdCerrejon Guajira 210 23 233 Bogotl Cundinamarca 8,383 3,878 12,261 Bucaramanga Santander 1,854 465 2,319 Medellin Antioquia 3,208 1,357 4,565 Dos Quebradas Risaralda 129 65 194 Villavicencio Meta 706 328 1,034 Neiva Huila 138 205 343 IbaguC Tolima 37 111 148 Total 29.922 11.077 40.999 Source: MinistryofMiningandEnergyandPubligcis Magazine(September2004). 165 7.75 Along with the development o f natural gas distribution systems for domestic and industrial consumption, a new program to promote substitution o f CNG for gasoline in motor vehicles started in 1985. However, only modest progress has been made over the past 20 years. Despite the economic attractiveness o f natural gas compared to gasoline, substitution has been constrained by the high cost o f converting vehicles to CNG, continuing public concerns about safety, and limited incentives to build CNGfueling stations (Table 7.12). Nonpoint Sources (sugarcane burning) 7.76 Informationon nonpoint source control in sugarcane fields is quite limited. Table 7.13 indicates that 30,000 to 40,000 hectares per year reportedly were harvested through "green cuts" over the past several years in CVC. This represents less than 23 percent o f the harvested area. The practice o f green cuts appears to have peaked in2000 andthen declined somewhat. PotentialInterventionsto ControlAir Pollution 7.77 Brugman(2004) analyzed potential interventionsto control air pollution, including(a) removal of subsidies to gasoline and diesel, (b) use of CNG-powered vehicles in cities, (c) substitution o f biomass and coal by CNG in urban factories, (d) promotion of urban mass transportation systems, and (e) retrofittingo fthe refineries at Barrancabermeja andCartagenato lower the sulfur content infuels. 7.78 Removing subsidies to gasoline and diesel is intended to bring domestic prices into line with internationalprices andeliminate the difference intax rates for gasoline and diesel. According to Brugman (2004), removingsubsidieswould reduce demand for fuel inthe transportation sectorby 8 percent. 7.79 Retrofitting the Cartagena and Barrancabermeja refineries includes hydrogenation and desulfurization o f the gasoline and diesel produced at the Barrancabermeja refinery, which represents about 80 percent o f the nation's domestic supply. In Cartagena the aim o f the retrofitting project i s to enlarge the refinery and provide hydrogenation and desulfurization of the gasoline and diesel produced, which represents about 20 percent of the nation's domestic supply. By 2008 emissions o f PMlo, SOx, and NOx would be reduced by about 2 percent compared to 2002."4 The costs o f the investments inCartagena are expected to be about $806 million. These investments could be delayed by importing low sulfur diesel. Brugman (2004) estimates that importing 5,600 barreldday o f low sulfur diesel during 2005-07 would cost between $33 million and $35 million. 7.80 The campaign to promote CNG-powered vehicles seeks to substitute CNG for 30 percent o f the gasoline and diesel used in the eight largest urban and industrial areas in the country. The cost o f investments in vehicles (without counting the net benefits o f substituting imported gasoline and diesel with CNG) is estimated at between$262 millionand$280 million. 7.81 Substituting natural gas for coal in urban industries could amount to 10 MMcfd on the northern coast and 20 MMcfd inthe interior. Emissions o f PMlo, and SOzwill be reduced on a national basis. The costs o f supply and transportation of gas are higher than the costs o f coal use by between $136 million and$178 million. 7.82 These proposals have been under study in the Department o f National Planning (Departamento Nacional de Planeacidn, DNP) and the MAVDT, but no final decisions have been made. On March 14, 2005, the national government approved National Council on Economic and Social Policy (Consejo Nacional de Politica Econdmica y Social, CONPES) Document 3344, which establishesterms o f reference `I4Under a scenario where the refinery is still operatedwith the currentfacilities. 166 for the design o f a national policy on prevention andcontrol o f air pollution, with options andprograms to control atmospheric contamination inurbanareas. The CONPES document proposes the establishment o f a NationalIntersectoralTechnical Commission for Prevention and Control o f Air Pollution (CONAIRE) that will be chaired by the Minister o f the MAVDT and will include representatives from the Ministries of Transportation, Mining and Power, Environment, and Social Protection, IDEAM, DNP, Ecopetrol, CARS, andAAUs.Periodically, other public or privateinstitutions maybe invitedto participate. The Commission's main function will be to design national strategies to manage air quality. CONAIRE will also promote the creation o f related councils and coordination at the local level. CONPES 3344 also proposes creation o f an Air Quality Information System (SISAIRE), to be managed by IDEAM, for the purpose of collecting, updating, and analyzing relevant information generated by the monitoring network and by environmental, sanitation, transportation, andenergy authorities. Table 7.13: Hectares of Sugarcane in CVC with Green Cuts, 1997-2003 Year Total crops (hectares) Hectares %of total 1997 151,175 19,930 13 1998 167,399 28,462 17 1999 156,166 32,922 21 2000 176,648 40,171 23 2001 166,392 36,730 22 2002 162,152 34,070 21 2003* 79,117 14,094 18 *To June 30,2003. Source: CVC. 7.83 The government o f Colombia is considering a series o f intersectoral measuresaimed at tackling two major sets o f issues that constrain air pollutioncontrol. The first is to make the findings of past reviews o f experience and lessons learned more widely available and to apply those lessons to future strategies for air pollution control. The terms o f reference for CONAIRE contained in CONPES 3344 give the proposed commission responsibility for disseminating information related to air quality and pollutionprevention to foster greater awareness and learning and to guide research. The second relates to the potential challenges involved in achieving full implementation o f the CONPES proposals. The government o f Colombia is considering new efforts to strengthen the implementation process and specifically to counterbalance the influence o f interest groups by strengthening civil society participation inthe design andimplementation o f air pollutioncontrol policies andmeasures(Suhrez, Montenegro, andCarasquilla 2005). BeneJit-costAnalysis of Interventions to ControlAir Pollution from Mobile Sources in Bogotd 7.84 More than 80 percent of the estimated costs incurred by the health impacts o f air pollution in Colombia is concentrated in only four departments and the city o f Bogotb. The costs for Bogotb alone represent 50 percent o f the national total and are more than three times higher than in Valle and Antioquia, the departments with the next-highest cost (Figure 7.2). The annual cost in Bogoth is equivalent to nearly 2 percent o f Bogoth's GDP and could reach almost 3 percent o f GDP if mortality costs are basedon the value o f statistical life (VSL) approach (Larsen 2005). 7.85 For these reasons, andbecause o f the substantial data requirements and complexity o f estimating the benefits ofpollution controlmeasures, the analysis ofcosts andbenefits ofurbanair pollution control inthis section deals only withBogotb. Inaddition, the analysis focuses onemissions from mobilesources, which are a significant contributor to urbanair pollution inBogotb. 167 7.86 Health effects o f air pollution are a function o f ambient air quality. Estimating the benefits o f urban air pollution control therefore requires (a) an emissions inventory, (b) a relationship between the inventory and ambient air quality, and (c) an estimate o f emissions reductions from individual pollution control measures. 7.87 The cost o f urban air pollution in Bogoth presented in Larsen (2004) is based on a population- weighted, estimated annual average ambient PMlo concentration o f 62 pg/m3.PMlo was then converted to PM2.5using a factor o f 0.6 based on observed PM2.5/PMloratios in similar conditions in the United States and on spot estimates of particle size distribution in Bogoth undertaken by the Universidadde Los Andes (2004) andBrugman(2004), shown inTable 7.14. 7.88 The primary focus o f the Universidad de Los Andes study was to assess emissions from mobile sources, andthe primary focus o fthe Brugmanstudy was fossil fuel use inurbanareas. The estimatesdo not include fugitive dust from roads, agriculture, and other sources. Nor do the emissions reflect secondary particulate formation (nitrates and sulfates) from gaseous emissions (nitrogen oxides and sulfur), which can represent a substantial share of atmospheric concentrations o fPMlo andPM2.5. Ignoringthese sourcesofP M couldpotentially result inan overestimation o f both the cost of damages from mobile andstationary source emissions and o f the health benefits o f P M emission control. A simple model was therefore developed in this analysis to provide abroad estimate o f the contribution o f fugitive dust, nitrates, and sulfates to ambient concentrations o f PMz5and PMlo in Bogoth. The derived ambient PM2.5 concentration was then used to estimate annualmortality, andPMlowas usedto estimate annual morbidity. Figure7.2: AnnualHealthCostof UrbanAir Pollution(billionpesos) S.F.de BOGOTA D.C. Velle Antloqula Atlentice Santander Bollvar Riaaralde Cundlnamrce None de Santander C6rdoba roil- Mota Celdes Hulla Ceaar hgdalena Qulndb Soyace Nerino Le Quallra Ceuca sucre CequetCl 0 100 200 300 400 500 600 700 800 SO0 Note: Costs are the meanof a low estimate usingthe humancapital approach(HCA) for the cost o f mortality, anda high estimate using the value of statistical life (VSL) approach. Source: Larsen(2005). 168 7.89 As shown in Table 7.15, the PM2.5/PMloratios for emissions from fuel combustion (petroleum products) from both mobile and stationary sources are well above 0.9. This is also the case from waste and residue burning and forest fires. The PM2.5PMloratios for nitrates and sulfates are also above 0.9. The ratio for fugitive dust, however, is generally very low, and the ratio for emissions from industrial processes is usually somewhere between the ratios for fugitive dust and for fuel combustion, depending on the type o f industry, process technology, and pollution abatement technology. The ratio o f OS5 reported in Table 7.15 represents an average for various processes, andwill vary significantly depending on the type o fprocess andemission abatement technology. Table 7.14: EstimatedPMloEmissionsinBogoth,2002 (tondyear) study Source Universidadde LosAndes Brugman Mobile 1,560 2,400 Stationary(fuels) 2,100 Stationary (processes) 800 Stationary 2,940 Total 4,500 5,300 Source: Universidadde Los Andes (2004); Bmgman(2004). Table 7.15: EmissionSourceRatiosofPMIJandPMlo Source PM2.5/PMIOratio Stationary Fuelcombustion 0.96 Industrialprocesses 0.55 Fugitive dust Pavedroads 0.25 Unpavedroads 0.15 Constructionanddemolition 0.15 Farmingoperations (tilling, etc.) 0.20 Miscellaneousprocesses Wasteburning 0.96 Agricultural residue burning 0.93-0.96 Forest fires 0.93 Mobile On-road 0.98 Source: Reproduced from table in Countess (2003); for rice, wheat, and corn of agriculturalresidueburning: Scarborough,Clinton, andGong(2002). 7.90 Recent studies from the United States indicate that nitrates and sulfates constitute around 30 percent o f ambient concentrations o f PM2.5inCalifornia, and as much as 45 to 50 percent o f PM2.5inthe eastern states. However, the ratio o f nitrates to sulfates is much higher in California, mainly because emissions there are mostly from mobile sources, while the eastern United States i s more heavily affected by sulfur emissions from powerplants (Table 7.16). 169 7.91 The share o f nitrates and sulfates in ambient PM2.5 concentrations in Bogotai is unclear. A midpoint estimate of 15 percent for nitrates and 15 percent for sulfates has been used to estimate an emissions inventory that includes both primary and secondary PM. Applying the model that includes estimated contributions o f fugitive dust, nitrates, and sulfates in ambient PM concentrations results inthe concentration levels presented in Table 7.18. The model was applied by setting sulfates and nitrates to 15 percent o f PM2.5, applying the PM ratios in Table 7.16, using the emissions fi-om Brugman (2004) in Table 7.15, andusing an aggregate PM2.5/PMloratio o f 0.6 as inLarsen (2004).'15 Table 7.16: Nitrates and Sulfates in PM2.5 Share of ambient PM, 5 (percent) Region Nitrates Sulfates California 20-25 5-8 Easternstates 5-1 5 2540 Source: Derivedfrom "Latest Findings on NationalAir Quality: 2001 StatusandTrends." www.epa.gov/airtrends/ Table 7.17: ModelResults for Annual Emission Inventory inBogota PMIO Percent that Urban becomes pM2.J pM2.5 Source urban PMIO /Philo (tons) Scenario 1(low) Mobile 2,400 100 2,400 0.98 2,352 Stationary (fuels) 2,100 25 525 0.96 504 Stationary (industrial processes) 800 25 200 0.50 100 Sulfates (15% o f P M2.5) 850 100 850 0.95 808 Nitrates (15% o f P M2.5) 850 100 850 0.95 808 Forest firestwaste burning 0 * 0 0.93 0 Fugitive emissions 4,190 100 4,190 0.20 838 Total 11,190 9,015 0.60 5,409 Scenario 2 (high) Mobile 2,400 100 2,400 0.98 2,352 Stationary (fuels) 2,100 75 , 1,575 0.96 1,512 Stationary (industrial processes) 800 75 600 0.50 300 Sulfates(15% o fP M2.5) 1,250 100 1,250 0.95 1,188 Nitrates (15% o f P M 2.5) 1,250 100 1,250 0.95 1,188 Forest firestwaste burning 200 * 200 0.93 186 Fugitive emissions 5,900 100 5,900 0.20 1,180 Total 13.900 13.175 0.60 7.905 * The low scenario assumes that no PMlo from forest fires and waste burning end up in the urban ambient environment,while thehighscenario assumesthat these sources contribute 200 tons ofPMlo. No estimateis available of totalemissionsfrom these sourcesor the percentagethat becomesambientPMlo inBogoti. `I5Note that, for any given level o f ambient P M concentrations, the estimated damage cost of a ton o f PM, or the benefit of a ton of P M emission reduction, is an inverse function o f total emissions. The estimate o f emissions by Brugman (2004), andnot the estimateby the Universidad de LosAndes, is therefore applied inthis analysis inorder to provide a more conservative estimate o f damage cost. 170 7.92 Two scenarios are presented in Table 7.17 to account for uncertainty in the contribution o f stationary sources (mainly industrial emissions) to urban ambient concentrations o f PMlo andPM2.5.This depends on industrial location, stack heights, wind direction, and other factors. A low assumption o f 25 percent is used in Scenario 1 and a high assumption of 75 percent is used in Scenario 2 to estimate the share o f total emissions from stationary sources that actually end up in the urban ambient environment. Forest fires andwaste burningare assumedto contribute no PMlo to the urbanambient environment inthe low scenario and 200 tons in the high scenario. Note that the fugitive emissions estimated by the model contribute roughly 45 percent o ftotal PMlo,but only about 15percent o ftotal PM2.5. Cost of Damagefrom Mobile Sources 7.93 Table 7.18 presents the estimated total annual costs of damage caused per ton and by source o f PMlo The low estimate is based on the human capital approach (HCA) to valuation o f mortality risk andthe highestimate is based on the value o f statistical life (VSL) approach (Larsen 2004). The average cost o f damage from all sources is estimated at between C$20 million and C$24 million ($8,000 to $10,000) per ton o f PMlo in the low case, and between C$61 million and C$76 million ($25,000 to $30,000) for the highcase. Table7.18: EstimatedCostofDamageCausedby PMloinBogota Estimated costper year Costper ton of PMlo (billionpesos) (million pesos) (thousand US$) Emission source Low High Low High Low High Scenario 1(low PMlo) Mobile 85 337 35 140 14 56 Stationary (fuels) 18 72 9 34 4 14 Stationary (industrial processes) 6 16 7 21 3 8 Sulfates (15% of PM2.5) 30 117 35 137 14 55 Nitrates (15% of PM2.5) 30 117 35 137 14 55 Forest firedwaste burning _-- -__ --_ _-- _-- --_ Fugitive emissions 104 194 25 46 10 18 All sources 273 854 24 76 10 30 Scenario 2 (high.PMI0) Mobile 58 231 24 96 10 39 Stationary (fuels) 38 149 18 71 7 28 Stationary (industrial processes) 12 34 15 42 6 17 Sulfates (15% of PM2.5) 30 117 24 94 10 38 Nitrates (15% of PM2.5) 30 117 24 94 10 38 Forest firedwaste burning 5 18 24 92 10 37 Fugitive emissions 100 187 17 32 7 13 All sources 273 854 20 61 8 25 Note: Scenario 1 uses a low estimate o f ambient PMloand Scenario 2 uses a high estimate. The columns for low and high costs are based on different methods for the valuation o f mortality risk-the humancapital approach (HCA) is used for the low estimate and the value o f statistical life (VSL) approach is used for the high estimate. 116The total annualcost o fbetweenC$273billionand C$854 billionis from Larsen(2004). 171 7.94 Figure 7.3 shows the average o f the low (HCA-based) annual cost estimates o f PMlo for the two different emission scenarios, and Figure 7.4 shows the average o f the high cost (VSL-based) estimates for the two scenarios. The main difference between the two figures is the relative magnitude o f damages and costs from mobile sources and fugitive emissions. InFigure 7.3, the cost from fugitive emissions is higher than from mobile sources, while the opposite i s the case in Figure 7.4. This i s because o f the application o f the H C A for valuation o f mortality in Figure 7.3, which implies a relatively low damage cost to PM2.5 compared to PMlo. Thus the cost o f fugitive emissions is more prominent, because the total quantity o f fugitive emissions, measured by PMlo, is higher than from mobile sources (Table 7.17). In Figure 7.4, however, the damage cost reflects valuation o f mortality using the VSL approach, which implies a higher damage cost o f PM2.5 relative to PMlo. Since emissions from mobile sources are higher in PM2.5 than fugitive emissions, total damage cost o f mobile emissions is higher than from fugitive emissions. 7.95 Figures 7.5 and 7.6 present the estimated damage cost by emission source per ton o f PMlo. The figures are averages o f Scenario 1 and 2. Damage cost is highest from mobile sources inboth the low and highcases, rangingfrom about C$30 million to C$120 millionper ton ($12,000 to $48,000). It should be noted that the estimated damage cost per ton o f secondary particulates isjust as highas the cost per ton o f particulates from mobile sources. This is becausethe PM2.5fraction o f sulfate andnitrateparticulates is very similar to particulates from mobile sources. Figure7.3: AnnualCost ofDamageby EmissionSource (low cost estimate) Mobile sources Fugitiveemissions SecondaryPM (Nitrates) SecondaryPM (Sulfates) Stationarysources (fuels) Stationarysources (processes) Forestfireshaste burning 0 20 40 60 80 ' 100 120 Billionpesos 172 Figure 7.4: Annual Cost of Damage by Emission Source (high cost estimate) Mobilesources Fugitiveemissions SecondaryPM (Nitrates) SecondaryPM (SuIfates) Stationarysources (fuels) Stationarysources (processes) Forestfireslwaste burning 0 50 100 150 200 250 300 Billion pesos Figure 7.5: Damage Cost per Ton of PMlo(low cost estimate) Mobilesources I I I I Secondary PM (Nitrates) SecondaryPM (Sulfates) Stationarysources (fuels) Forestfireslwaste burning Fugitiveemissions I I I I Stationarysources (processes) 0 5 10 15 20 25 30 35 Million pesos per ton of PMlo 173 Figure7.6: DamageCost per Ton ofPMlo (high cost estimate) 1 I I I I I Mobile sources Secondary PM (Nitrates) Secondary PM (Sulfates) Stationary sources (fuels) Forestfiredwaste burning Fugitiveemissions Stationary sources (processes) 0 20 40 60 80 100 120 140 Millionpesos per ton of PMto Table 7.19: EstimatesofVehiclesandFuelConsumptioninBogota Avg.fie1 economy Number of Fuel type (% offleet) Avg. usage (km/gallon) Vehicleclass vehicles Gasoline Diesel @/year) Gasoline Diesel CarS Private 359,682 96.0 3.5 12,640 31.8 31.9 Public urban 54,805 90.0 8.0 46,3 10 28.4 28.4 Public interurban 7,473 90.0 8.0 46,310 28.4 28.4 S W s andVans Private 58,602 96.0 3.5 13,850 19.5 19.7 Public urban 285 96.0 3.5 13,850 19.5 19.7 Public interurban 4,432 96.0 3.5 13,850 19.5 19.7 Trucks c2-u 7,143 80.0 19.8 48,000 8.1 10.4 c2-I 5,702 80.0 19.8 48,000 8.1 10.4 C3-I 711 1.9 98.1 66,000 5.3 6.7 C4-I 62 1.9 98.1 66,000 5.3 6.7 C5-I 947 1.9 98.1 6'6,000 4.3 5.3 C5>I 454 1.9 98.1 66,000 4.3 5.3 Buses P300U 6,808 19.8 80.0 47,410 7.5 8.6 P600U 13,747 19.8 80.0 50,350 6.7 8.2 MICROSU 132 80.0 19.8 64,640 19.1 19.4 P300I 3,195 19.8 80.0 47,410 7.5 8.6 P600I 10,927 19.8 80.0 50,350 6.7 8.2 P900I 1,351 19.8 80.0 50,350 6.7 8.2 Source: Reproducedfrom Brugman(2004). 174 7.96 Table 7.19 presents estimates o f the vehicle fleet, the share o f the vehicle fleet with diesel and gasoline engines, vehicle driving distance, and fuel consumption (Brugman 2004). CNG vehicles are not included inthe table, but they represent only a very small fraction o f vehicles. Taxis are inthe category o f "public urban cars." Many o f the buses and trucks are used on interurban routes. This issue is discussed later with respect to the damage cost o fpollution for each o f the vehicle classes. 7.97 Table 7.20 presents PMlo emissions factors in kilograms per gigajoule (Brugman 2004). These factors should be considered broad averages. Emissions from any given vehicle will vary substantially depending on engine condition, maintenance, and other factors. "Old diesel vehicles" refers to aging fleet vehicles in Colombia and newer diesel vehicles that lack technology to control P M emissions. The emission factors for "new diesel vehicles" can in many instances be considered applicable to in-fleet diesel vehicles with retrofit technology such as trap oxidizer systems and oxidation catalysts. For new diesel vehicles with advanced particulate control technology running on low-sulfur diesel, emissions can be expected to be substantially lower than reported inTable 7.20. For a discussion o f emission monitoring results from in-fleet vehicles inmany countries around the world, see Faiz andothers (1996). Table 7.20: PMloEmissionsFactors PA410 emissions (kg/GJ) Vehicleclass Gasoline vehicles Olddiesel vehicles New diesel vehicles cars Private 0.01 0.17 0.09 Public urban 0.0 1 0.17 0.09 Public interurban 0.01 0.17 0.09 Camperos Private 0.01 0.17 0.09 Public urban 0.01 0.17 0.09 hiblic interurban 0.01 0.17 0.09 Trucks c2-u 0.01 0.18 0.10 c2-I 0.01 0.18 0.1 C3-I 0.01 0.21 0.05 C4-I 0.01 0.21 0.05 C5-I 0.01 0.21 0.05 C5>I 0.01 0.21 0.05 Buses P300U 0.01 0.18 0.10 P600U 0.01 0.18 0.10 MICROSU 0.01 0.18 0.10 P300I 0.01 0.18 0.10 P600 I 0.01 0.18 0.10 P900 I 0.01 0.18 0.10 Source: Reproducedfrom Brugman(2004). 7.98 Table 7.22 presents estimates of the cost o f damages caused by pollution per vehicle per year. The low estimate is based on US$lO,OOO per ton o f PMlo from Scenario 2 in Table 7.18, which was estimated by usingthe humancapital approach for mortality valuation andthe assumption that 75 percent o f industrial emissions end up inthe urbanenvironment. The highestimate i s basedon US$56,000 per ton o f PMlo from Scenario 1 in Table 7.18, which used the VSL approach to mortality valuation, and the 175 assumption that only 25 percent o f industrial emissions end up in the urban environment. About 70 percent o f the difference between the low and high estimates is associated with the mortality valuation procedures, and 30 percent o f the difference is associatedwith the assumptions about the contribution o f industrial emissions to urbanambient air quality. Table 7.21: EstimatedPMlo DamageCost per Vehicle inBogota PA410damage costper vehicle (US$/year) Olddiesel vehicles New diesel vehicles Vehicleclass Low High Low High Cars Private 100 560 50 300 Publicurban 400 2,300 210 1,200 Public interurban 400 2,300 210 1,200 Camperos Private 170 1,000 90 520 Publicurban 170 1,000 90 520 Public interurban 170 1,000 90 520 Trucks c2-u 1,200 6,900 700 3,800 c2-I 1,200 6,900 700 3,800 C3-I 3,000 17,100 700 4,100 C4-I 3,000 17,100 700 4,100 (25-1 3,800 21,800 900 5,200 C5X 3,800 21,800 900 5,200 Buses P300U 1,400 8,200 800 4,600 P600U 1,600 9,100 900 5,100 MICROS U 900 5,000 500 2,800 P300I 1,400 8,200 800 4,600 P600I 1,600 9,100 900 5,100 P900I 1,600 9.100 900 5,100 Note: Figuresbelow $600 are roundedto the nearest$10. Figuresabove $600 are rounded to the nearest$100. Source: Estimatedby Larsen(2005b). 7.99 The estimated damage cost per vehicle is much higher for trucks and buses than for cars and camperos. This is mainly a function o f differences in annual driving distances and fuel economy. Estimateddamage cost for taxis ("public urban cars") with diesel engines i s also relatively high.It should be noted that the estimated damage cost per vehicle inTable 7.21 is based only on primary PM emissions anddo not reflect the damage cost o fsecondary particulates (sulfates andnitrates). Interventions 7.100 Interventions to control primary and secondary particulate emissions from mobile sources can broadly be classified into the following categories: (a) market-based instruments such as fuel pricing and taxation, vehicle taxation, and emissiontaxes; (b) vehicle technology standardsandregulations, including 176 in-fleet technology retrofitting and inspection and maintenance programs; (c) fuel quality improvements and fuel use regulations, such as low sulfur diesel and conversion to CNG; and (d) traffic management andurbanplanning, includingpublictransportation policies. 7.101 The focus inthis analysis will be on some obvious options such as diesel pricing policies, in-fleet technology retrofitting and technology standards for new vehicles, CNG conversion for high-usage vehicles, and diesel quality improvements in relation to technology to control particulate emissions from diesel-powered vehicles. 7.102 Diesel Pricing. Data on retail fuel prices during 1980-2004 reveal that prices o f diesel and regular gasoline were practically unchanged during 1980-98. After 1998, gasoline prices increased at a much faster rate than diesel prices, both innominaland real terms. By 2004 diesel prices were 30 percent lower than regular gasoline prices, and 50 percent lower than high-octane gasoline. Brugman (2004) estimates that removal o f fuel subsidies could reduce overall transport diesel consumption (relative to baseline demand projections) by 7 to 8 percent, based on a study in Colombia of price elasticities o f fuel demand. While such a reduction in diesel consumption may not appear to be substantial, much o f the reduction is likely to come from reductions in light-duty diesel vehicles, which gain less from having a diesel engine than do heavy-duty vehicles. Fuel subsidy removal could therefore help prevent and in the longer runeven reverse the trend toward dieselization o f light-duty vehicles. This is a desirable outcome, assuming that new light-dutydiesel vehicles are not equipped with modemparticulate control technology that effectively reduces PMemissions. Table 7.22: Benefits of DieselVehicle Retrofit Technology Retrofit benefits fUS$/vehicle/vear) Vehicleclass Low Hiah Trucks c2-u 500 3,100 c2-I 500 3,100 C3-I 2,300 13,000 C4-I 2,300 13,000 C5-I 2,900 16,600 C S I 2,900 16,600 Buses P300U 600 3,600 P600U 700 4,000 MICROS U 400 2,200 P300I 600 3,600 P600 I 700 4,000 P900 I 700 4,000 Source: Larsen(2005b). 7.103 Particulate Control Technology. Buses and trucks are responsible for the majority o f P M emissions from mobile sources inBogoth. While the new Transmilenio buses emit fewer particulates than the average bus or truck inBogoth, the old bus andtruck fleet i s still a major source o f urbanair pollution. Retrofitting these buses and trucks with particulate control technology i s an option to reduce PM emissions. However, because retrofit control technology is not inexpensive, consideration mightbe given to the expected remaining useful life o f many o f the aging buses andtrucks. Options mightbe providedto busandtruck operators either to retrofit or remove the vehicles from the fleet within a certaintime frame. 177 7.104 Retrofit technology, such as trap oxidizer systems or oxidization catalysts, could cost several thousand U.S. dollars and as much as $7,000 to $8,000 per bus (Walsh 1998). The potential benefits o f retrofit technology are shown inTable 7.22. The benefits are estimated as the difference in emissions and damage costs inTables 2.7 and 2.8. For heavy trucks, the payback period interms o f environmental health benefits could be less than one year if valuation o f mortality is based on VSL (highestimate). Ifthe HCA (low estimate) is applied, then the payback period ranges from two to three years. For buses and lighter trucks, the payback period could range from as little as 2 to 3 years for the highestimate to as much as 6 to 10years for the low estimate. 7.105 These payback estimates are for buses and trucks used mainly within BogotL. Most o f the pollution from interurban buses and long-haul trucks would be emitted outside the cities and the damage cost would be substantially less, ifnot minimal. Based on the estimates here, priority should be given to retrofittingbuses andtrucks usedpredominantly within urbanareas. Table 7.23: Benefits of Conversion to CNG CNGconversionbenefits (US$/vehicle/year) Vehicleclass Low High Cars Diesel taxis 400 2,300 Buses P300U 1,400 8,200 P600U 1,600 9,100 MICROS U 900 5,000 P300 I 1,400 8,200 P600 I 1,600 9,100 P900I 1600 9.100 Source: Larsen (2005b). 7.106 CNG Conversion. Conversion to CNG would practically eliminate particulate emissions. Itis often considered a viable option for taxis andother high-usage vehicles. Insome countries, large busesalso runon CNG. Potential benefits o f conversion to CNGare presentedinTable 7.23 for diesel vehicles. Itcan also be an attractive option for diesel taxis. For large diesel buses, however, CNG conversion would need to be carefully evaluated andcompared to the option o fretrofitting with particulate controltechnology. 7.107 Diesel Quality Improvement. One important aspect o f diesel quality is sulfur content. Low sulfur content has direct benefits in that it usually provides some reduction in particulate emissions f?om diesel combustion. The other benefit is that low sulfur content is often a prerequisite for advanced particulate control technology on diesel vehicles, or it at least makes the control technology more effective. Low sulfur content can also reduce secondary particulate formation (sulfates), providingan addedbenefit to health. 7.108 Sulfur content indiesel inBogotL is 0.1 percent by weight. While this is lower than inother cities inColombia, to take full advantage of the advanced technology available for particulate control innew diesel vehicles, sulfur would have to be further reduced. 7.109 Estimated benefits from a 5 percent reduction in PM emissions by reducing the sulfur content o f diesel to 0.05 percent are shown inTable 7.24. Inthe low-benefit scenario, the PMreductions might not be sufficient to justify such a reduction. Inthe high-benefit scenario, the estimated benefits are substantially higher than the incremental cost o f supplying low-sulfur diesel. Two issues should be mentioned. First, 178 because the benefits o f emission reductions are based on urban emissions, the estimates apply only to vehicles used predominantly in urban areas and not to interurban transport. Low-sulfur diesel should therefore be prioritized for the urban market. Second, low-sulfur diesel has important benefits other than direct PM reductions, such as allowing for adoption o f advanced particulate control technology on new diesel vehicles. Conclusions andRecommendations 7.1 10 Colombia has made major efforts during the past decade to improve air quality in Bogot6 and several other large urban areas. These efforts have been bolstered by increased awareness by experts and the public o f the links between air pollution and public health. However, the damage to humanh,ealth associated with current air pollution levels-particularly elevated concentrations o f fine particles- remains quite high. Despite severe data limitations, this chapter has documented a number of problems in the areas o f stationary, mobile, and nonpoint sources, and some basic measurement issues affecting all sources. 7.111 Despite ongoing concerns about carbon monoxide, hydrocarbons, and possibly other pollutants, overwhelming evidence points to elevated levels o f fine particles as the most important cause o f air- Table 7.24: Benefits of Converting to Low-sulfur Diesel BeneJits of reducing sulfirr in diesel to 0.05percent, by weight (US$/ton diesel) Low High cars Private 3.7 21 Public urban 3.7 21 Public interurban 3.7 21 Camperos Private 3.7 21 Public urban 3.7 21 Public interurban 3.7 21 Trucks c2-u 3.9 23 c2-I 3.9 23 C3-I 4.6 26 C4-I 4.6 26 C5-I 4.6 26 C5>I 4.6 26 Buses P300U 3.9 23 P600U 3.9 23 MICROS U 3.9 23 P300 I 3.9 23 P600 I 3.9 23 P900 I 3.9 23 Note: Currentsulfur contentis 0.1 percentbyweight. Source: Larsen(2005b). 179 pollution-related health impacts. Accordingly, it would be advisable to develop abroad strategy to reduce exposure to elevated concentrations o f fine particles. Key elements o f this strategy might include the establishment o f national ambient standards for PMlo and PM2.5, plus the strengthening o f technology- specific emission standards for PM andits precursors (particularly sulfur and nitrogen oxides). Additional resources are also needed to enhance monitoring and enforcement activities to address the challenge posedby this pollutant. Measurement and Monitoring 7.1 12 The old adage that it is impossible to manage what is not measured is particularly applicable to air quality, The importance o f this point cannot be overstated. The modest amount of actual monitored data presented inthis chapter reflects the limited data available. Insome cities only single monitors are in operation. Specialized equipment, regular maintenance, standardized protocols for reading and interpreting the data, and training o f personnel are all essential elements o f viable control policies. Further, a centralizeddepository might be established to review and analyze data from across the country, Overall, a strong institutional structure, combined with solid base funding,and continued oversight, are essential for achieving reliable and consistent measurements over time. Specifically, standards for air quality monitoring equipment and procedures to measure particulate matter, mainly PM2,5 and PMlo, could be established at the national level, and monitoring networks should be strengthened in major municipalities throughout the country. Ambient Standards 7.113 The national ambient standards for key air pollutants, first issued in 1982, are still in effect today. Over the past two decades there have been considerable advances inunderstanding o f the link between air pollution and public health. On an international basis, most nations with large urban populations have reflected the new scientific developments intheir standards. The fact that BogotA andCali have updatedthe 1982 standards is a positive step. However, with new information available and progress inresearch and technology, it is time to revise national standards. Accordingly, it is advisable that the 1982national ambient standards be updated to reflect the latest developments in science and policy making. Given the demonstrated health damages associatedwith elevated concentrations o f fine particles, the establishment o f national standards for PMlo and PM2.5 is recommended. A point of reference for setting these standards is the 50 pg/m3average annuallimit establishedby the USEPA. Stationary Sources 7.114 Based on the review o f the regulatory structure, there are a number o f actions the government might consider to reduce the negativeimpacts ofstationary sources ofair pollution: 0 Major emission standards for stationary sources might be updated to reflect new scientific and technological advances, with a focus on fine particles. 0 Itwouldbe advisable to encourage efforts to improve fuel quality usedby power plants andheavy industry, including expandeduseo fnaturalgas to replace coal, anduseo flow-sulfur oil. 0 The establishment o f new regulatory programs for specific sectors (and smaller sources) not currently covered by enforceable regulations is recommended. As noted, brick kilns are a major source o f air pollution in some areas, such as Nobsa. Innovative programs in other developing countries, such as Mexico, can serve as models for these activities. 180 e An extensive reformof compliance andenforcement systemsmightbe considered. At present, the penalties for noncompliance appear to be extremely modest. A more serious penalty system could be adopted, and it might be accompanied by strong MAVDT oversight. National-level sanctions could include the withholding o ffinancial support for continuedfailure to upholdthe laws. e A major audit o f existing tax incentives for newpollutionabatement andrelatedequipment might be considered. Based on the findings o f the audit, recommendations could be made for appropriate reforms, includingpossible expansion o fthe incentives. Mobile Sources 7.1 15 Since mobile sources represent a large and growing source o f urban air pollution, there are several actions that the government might consider: Harmonization o f motor-fuel prices with international levels, particularly diesel, might be considered. The 2006 deadline established by the government is adequate and should be maintained. Efforts to improve fuel quality by increasing imports o f clean fuels particularly for diesel consumption inBogoti, Cali, Medellin, Barranquilla, andBarrancabermeja are appropriate, and it is advisable to keep them inplace. The 2008 deadlines on sulfur content o f fuels are adequate, as well, and it is suggestedto maintain them, andifpossible to bringthem forward to 2006 or 2007. The continuation andexpansion o fthe use o f CNGinvehicles is advisable. Additional funding could be made available for upgrading urban bus fleets and other forms o f masstransit inmajor cities. Additional funding for programs to scrap older vehicles is recommended. A reexamination o f the testing methods for vehicle exhaust would be advisable in light o f the experiences o f other countries with similar methods (such as Mexico and the United States). Other, more rigorous, approachesto testing vehicle emissions mightbe considered. Following the proposals o f Brugman(2004) for additional incentives to encourage use o f natural gas, andeconomic incentives consistent with Law 99, should be considered. Nonpoint Sources 7.116 Burning o f sugarcane residue is the sole nonpoint source examined inthis chapter. The evidence presented indicates that compliance with so-called "green cut" procedures is inadequate to limit potentially harmfulpollution levels at specified times o f the year. Part o f the resistance to the use o f green cuts i s associatedwith allegiance to traditional practices. Accordingly, it would be advisable that national- level sanctions, including the withholding o f financial support for continued noncompliance, be built into the arsenal o f compliance tools available to government authorities (Blackman andothers 2004a). 181 Table 7.25: Summary of Recommendationsfor ImprovingUrbanAir Quality in Colombia Priority short (S). medium (w. Government Recommendation and long term (L) agencies Design and approval o f an air pollution control law S Congress Design and implementation ofan environmental policy to reduceurbanair pollution, includingthe establishment of S MAVDT,MSPS, INS, national ambient standards for PMlo andPM2.5. MME,DNP, AAUs, CARs Review experiencesand lessons learnedfrom past attempts CONAIRE, MHCP, to improve air quality inColombia. M-L MAVDT, MSPS, INS, MME,DNP, AAUs Issue regulations to establishand implementanew air pollution control scheme to promote behavioral change S Congress, MAVDT,AAUs, consistent with air pollution control. CARs Establish standardsfor air quality monitoring equipment andprocedures at the national level. S MAVDT, IDEAM Implement a national air quality monitoring systemfor PMlo and PM2.5inpriorityurbanareas. S-M MAVDT, MUS,CARs Strengthenmonitoring networks inmajor municipalities throughout the country. S-M MAVDT,CARS, AAUs Revise 1982national ambient standards andestablish S MAVDT,IDEAM,MSPS, .......................................................................................................................................... national standardsfor PMlo andPM2.5. . . . . . . . . . . . . . . INS ~ .................................................................................. ._ Stationary Pollution Sources Update major emission standards for stationary sources to reflect new scientific andtechnological advances, with a S MAVDT, IDEAM focus on fine particles. Encourageefforts to improve fuel quality inpower plants andheavy industry, including expandeduse o fnatural gas S MME,DNP,Ecopetrol to replace coal and low-sulfur oil. Establish new regulatory programs for specific sectorsand smaller sources not currently coveredbyenforceable M MAVDT, CARS, AAUs regulations. Reformthe compliance and enforcementsystems, including adoption o fa rigorous penalty system. S Congress, MAVDT Major audit o fcurrent tax incentives for procuringnew pollution abatementandrelated equipment. M-L MHCP, MAVDT, DNP Basedon findings o f audit, recommend appropriatereforms of incentives for procurement o fnew pollution abatement L MHCP, MAVDT, DNP andrelated equipment. ___" ............. ................................................................................... 182 Table7.25: SummaryofRecommendationsfor ImprovingUrbanAir QualityinColombia Priority GoWrnment Recommendation short (S), medium (M), and long term (L) agencies Mobile Pollution Sources Continue efforts to raise motor fuel prices to international levels, including gasoline and diesel. Maintain2006 M MME,DNP,Ecopetrol deadline. Continue efforts to improve fuel qualityby increasing clean fuel imports. Meet the 2008 deadlines on reduction o f MME, MAVDT, DNP, sulfur content infuels, and ifpossible bringthem forward S-M Ecopetrol to 2006 or 2007. Continue and expand efforts to encourage use o f CNG in MME,Ministy o f vehicles. S Transport, MAVDT, DNP Establishregulations for upgradingurbanbus fleets and MHCP, MAVDT,CARS, other forms o f mass transit inmajor cities. S-M IDEAM Establishregulations and incentives aimed at scrapping Ministryo fTransport, DNP, older vehicles. M-L MAVDT Reexamine methods for testing vehicle exhausts inlight o f internationalexperience, and introducemore rigorous S MAVDT, Ministryof approaches............................................................................................................................... to vehicle emissions testing. Transport, AAUs, CARS .............. ......................................................................................................... ._ Nonpoint Pollution Sources Implement monitoring methods for "green cut" programs. S MAVDT, CARS,I D E M Enact national-level sanctions, including withholding financial support for continued noncompliance. S MAVDT 183 CHAPTER 8 A SILENT KILLER: INDOOR AIR POLLUTION About 60 percent of rural households and 3 percent of urban households in Colombia burn solidfuels for domesticpurposes.Exposureto indoor air pollution as a result of domestic use of solidfuels has adverse health impacts and is linked to illnessessuch as acute respiratory infections and chronic obstructive pulmonary disease. In rural households, especially, burning solid fuels in poorly designed stoves or hearths exposes women and children to harmfil concentrations of particulate matter and gaseous pollutants. Such households typically cannot aflord cleaner fie1 options or are not connected to the electricity grid. Children under age 5 and the women who look after them and spend large amounts of time cooking are most vulnerable to the adverse health eflects of indoor airpollution. Thefindings of this chapter underscore the urgent need to address the problem of indoor air pollution through a program of cross-sectoral interventions that includefacilitating awareness of the problem, using technical mitigation options, fie1 substitution, behavioral change, and improving housing design. Introduction 8.1 Indoor air pollution is a priority environmental issue in Colombia. The data from Demographic Health Surveys (DHS) indicate that around 60 percent o f rural households andless than 3 percent o f urban households used fuelwood or charcoaVcoa1products in 2OOO."' On a national level, about 18 percent o f households used fuelwood or charcoaVcoa1products during this period. Even though rapid inroads were made with respect to the use of liquefiedpetroleum gas (LPG) or gas inboth rural andurbanhouseholds during 1995-2000, replacingbothtraditional fuels and electricity for cooking, the share o f rural households using traditional fuels remains substantial (Larsen 2004). 8.2 Larsen estimated that the annual cost o f health impacts from indoor air pollution associated with the use o f traditional fuels, mainly fuelwood, is C$415 billion. Taken together, the damages associated with indoor and outdoor air pollution represent almost 1 percent o f Colombia's gross domestic product (GDP). Acute respiratory illness inchildren andadult females accounts for 47 percent o f this cost, adult female chronic obstructive pulmonary disease (COPD) mortality accounts for 28 percent, adult female COPD morbidity accounts for 13 percent, and respiratory childmortality accounts for about 12percent (Figure 8.1). 8.3 The urgent need to address indoor air pollution is evident throughout most o f the developing world. The World Health Organization (WHO 2002) estimates that more than 75 percent o f people in India, China, and other Asian countries, and 50 to 75 percent o f people in parts o f South America and Africa, continue to rely on solid fuels such as dung, wood, agricultural residues, or coal for heating and cooking. The use o f these fuels in simple stoves generates substantial amounts o f pollutants, which are known to cause respiratory infections, BjomLarsen, KulsumAhmed, andYewandeAwe authoredthis chapter, whichdrawsheavilyfrom backgrounddocumentspreparedbyLarsen(2005) for this study. 185 pulmonary disease, and cancer. Exposure to these pollutants is greater for children and women, who usually spend a greater share o f their time indoors. As a result, an estimated 2.7 percent o f disability-adjusted life years (DALYs) worldwide are attributable to indoor smoke, 2.5 percent in males and 2.8 percent in females. In most Latin American countries, including Colombia, the proportion o f DALYs attributable to indoor smoke from solid fuels is 0.5 percent to 0.9 percent (Figure 8.2). Figure 8.1: Annual CostsofIndoorAir Pollution(billion pesos) 250 I 200 150 100 50 0 ARI Morbidity COPD Mortality COPD Morbidity ARI Child Mortality Source: Larsen(2004). 8.4 Currently, under Law 99, the Ministry o f Environment (Ministerio del Medio Ambiente, MMA) is responsible for the preparation of national standards, and the Autonomous Regional Corporations (Corporaciones Autdnomas Regionales, CARS) are responsible for the development and enforcement of local standards. As of August 2005, there were no policies or programs to control indoor air pollutants. Figure8.2: Proportionof DALYsAttributableto Indoor Smoke from SolidFuels I Source: WHO (2002). 186 Acute RespiratoryIllnessinColombia 8.5 The prevalence rate of acute respiratory illness (ARI) inchildren as reportedby the 2000 Colombia Demographic and Health Survey (DHS) varies substantially across departments and subregions, with a range o f 7.6 percent to 24.4 percent (Table 8.1).'" 8.6 The ARI prevalence rate does not vary much, although it is somewhat,higher in children with mothers who have no education (Figure 8.2). However, the percentage o f ARI cases that receives medical attention is more than three times higher for children with mothers who have a university education compared to children with mothers who have no education (Table 8.2). Because lack of treatment increases the risk o f ARI mortality, the figures in Table 8.2 may indicate that the burden of ARI, in terms o f morbidity and mortality, is higher among lower socioeconomic groups. These groups are also more likely to use solid fuels for cooking, increasingthe risko fARI morbidity andmortality inchildren. Table8.1: Acute RespiratoryIllness(AN) PrevalenceRatesinChildren Percent of children under age 5 with ARI during Departments (grouped by region) the two weeksprior to survey Guajira, Cesar, Magdalena 12.7 Atlintico, Bolivar Norte 19.7 Bolivar, Sucre, C6rdoba 24.4 Santanderes 9.1 Boyoca, Cundinamarca, Meta 9.4 Antioquia 11.6 Medellin 12.9 Caldas, Risaraldo, Quindio 7.6 Tolima, Huila, Caqueta 9.0 Cauca, Narifio 11.0 Bogotii 10.3 Valle del Cauca 13.8 Litoral Pacifica* 17.5 Cali 14.3 All Colombia 12.6 * LitoralPacific0includesChoc6. Source: ColombiaDemographicandHealth Survey 2000. HealthEffectsofIndoorAir Pollution 8.7 It is well documented fiom studies around the world that indoor air pollutionfiom burning solid fuels for cooking and heating in the indoor environment has substantial respiratory health effects. Women and young children appear to bear the largest effects, because they tend to spend more time indoors andor closer to the cooking areas. Some studies have also reportedhealth effects inmen. Smith, Mehta, andFew(2004) andDesai, Mehta, andSmith (2004) reportresults ofhealth effects from biomass smoke (fuelwood and so forth) and coal smoke based on a meta-analysis of available studies. The results of the meta-analysis are presented inTable 8.3. The relative risk(RR) '"TheDHS 2000 is ahouseholdsurveythatwas carriedout inthousands ofhouseholdsinColombia. 187 Table 8.2: Child Health, ARI Treatment, and Maternal Education Percent of ARI cases ARIprevalence rate Childmortality rate treated at health in children (%) (per 1,000 births) facilities NoEducation 16.9 44 25.I Primary Education 12.2 33 41.0 Secondary Education 12.5 24 55.8 University Education 13.5 15 83.8 Note: Diarrheal prevalence rate is for two weeks prior to survey date. Source: Data are from Colombia DHS 2000 for childrenunder age 5 Figure 8.3: ARI Prevalence inChildren by Mother's Education Level 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% I No Education PrimaryEducation Secondary Education UniversityEducation Note: ARI prevalence refers to percentageof children under age 5 with A N inthe two weeks preceding the date o f the householdsurvey. Source: Colombia DHS 2000. representsthe risk o f health effect or illness from the use o f solid fuels relative to the risk o f illness from the use o f clean fuels such as LPG. The RRfor households usingLPGis therefore 1.O. 8.8 The strongest evidence o f health effects is for acute lower respiratory illness (ALRI) in children under age 5, COPD in adult females, and lung cancer inadult females from coal smoke. Smith, Mehta, and Feuz (2004) and Desai, Mehta, and Smith (2004) do not report a relative risk ratio (RR) for acute respiratory illness in age groups over age 5 because most studies have concentrated on children under age 5. However, Ezzati and Kammen (2002), from a study in Kenya, find that the RR for the group age 5 to 49 is similar to the RR for children under 5 at various levels o f exposure to indoor air pollution(Ezzati andKammen2002). A BeneJit-cost Analysis Framework 8.9 A benefit-cost analysis of interventions to reduce indoor air pollution from solid fuels represents a challenge for many reasons. The relative risks reported in Table 8.3 represent averages from many studies, and do not necessarily reflect the pollution exposure situation in households that use solid fuels inColombia. Moreover, the pollution load from solid fuels is not homogeneous across households. Some households use unimproved stoves or open fire while others use improvedstoves with chimneys, and some households use a combination o f solid fuels and clean fuels such as LPG. A benefit-cost analysis framework should therefore be flexible 188 Table 8.3: Relative Risksfor Strong and ModerateHealth Outcomes Evidence Health outcome Group RR CI Strong ALRI Children <5 yrs 2.3 1.9-2.7 COPD Women >30 yrs 3.2 2.3-4.8 Lungcancer(from coal smoke) Women >30 yrs 1.9 1.l-3.5 Moderate-I COPD Men>30yrs 1.8 1.O-3.2 Lung cancer(from coal smoke) Men>30yrs 1.5 1.0-2.5 Moderate-I1 Lung cancer(from biomasssmoke) Women >30 yrs 1.5 1.0-2.1 Asthma Children5-14 yrs 1.6 1.0-2.5 Asthma All > 15yrs 1.2 1.O-1.5 Cataracts All > 15yrs 1.3 1.O-1.7 Tuberculosis All > 15yrs 1.5 1.0-2.4 ALRI=Acute lower respiratoryinfection. COPD=chronic obstructive pulmonary disease. Notations: RR=relative risk. CI= confidence interval. Source: Desai, Mehta, andSmith (2004). enough to accommodate these differences and allow for a sensitivity analysis o f parameters that will influence the benefitsandcosts o f interventionsto reduce pollution loads andor exposure. 8.10 For the purposes of this report, five scenarios were selected that represent five stylized situations commonly found in most developing countries (Table 8.4). These stylized situations represent reasonably well the pollution loads from solid fuel use. Actual pollution exposure, however, can vary substantially in each scenario, and depends on additional factors such as householdventilation practices, housing characteristics, andhousehold behavior. Because data on these factors are not readily available at the national level, a sensitivity analysis o f relative risk will needto be undertaken inorder to assess the likely influence of these factors on the benefit- cost ratios o f interventions. Table 8.4: Fuels, Stove Technology, and Pollution Scenarios Stylizedsituation Stylized description Relative risk I.Unimprovedwoodstovesor Low energy efficiency. No chimney or ventilation Very High open fire device. Very high indoor pollution load. 11. Improvedwood stoves Relatively low energy efficiency. Chimney (or High other ventilation device) taking much ofthe smoke outdoors. Still relatively high indoor pollution loadifstovekhimney is not well maintained. 111. Unimprovedwood stoves and Pollutionloadreducedinproportionto the use of Medium LPG(or other clean fuel) LPG (relative to situation I). IV. Improvedwood stoves and Pollution loadreduced inproportionto the use o f Mediumto Low LPG(or other clean fuel) LPG (relative to situation I). V. LPGor otherclean fuel Absence of smoke from solid fuels. Low Note: The framework in this table i s very similar to the exposure scenario framework presented inPruss andothers (2002), whichwas applied inthe water-sanitation-hygiene sectionofthis report. 189 8.11 The next step is to assign population shares and relative risks to each o f the stylized situations inTable 8.4. According to the Colombia DHS 2000, about 18 percent o f the population in Colombia relies on fuelwood (17 percent) and charcoal (1 percent) as the main fuel for cooking. In rural areas, over 60 percent o f the population relies on these fuels. The Unidud de Pluneucidn Minero Energkticu(UPME) presentsvery similar statistics andestimates that the total annual fuelwood consumption is 4.5 million to 5.0 million tons. Further, nearly 1.5 million households use fuelwood and charcoal as their primary energy source for cooking, and account for an average annual householdconsumption o f 3.15 tons. The data on fuel use are unfortunately insuficient to accurately assign the population shares that fall ineach o f the scenarios or stylized situations presented in Table 8.4. Therefore, it is necessary to apply a base case on which a sensitivity analysis should be performed. 8.12 Furthermore, little information is available in Colombia to assign relative risks to each o f the stylized situations in Table 8.4. While some information on assigning relative risks is available from the international literature, the situation-specific evidence is weak compared to that for water and sanitation. It is therefore necessaryto apply a base case o f relative risks to each o f the stylized situations andperform a sensitivity analysis. The following set o f equations can be usedto establish a basecase o frelative risks: where S is population share and RR is the relative risk o f using an unimproved stove (U), an improved stove (I), a combination o f an unimproved stove and LPG (UL), and a combination o f an improved stove and LPG (IL). SSF is the total population share using solid fuels (with or without LPG), and RRSF is the (weighted) average relative risk o f illness in these households. In equation (2), r is the "excess" risk reduction from using improved stoves relative to unimproved stoves. L is the share o f energy derived from LPG inhouseholds usingLPG and an unimproved stove (U), andinhouseholds using LPGandan improved stove (I). 8.13 The base cases for different population shares and relative risks are presented in Table 8.5. It is almost exclusively the rural population in Colombia that uses solid fuels as their main cooking fuel. Because solid fuel is used almost exclusively in rural areas in Colombia, rural population shares are therefore applied in Table 8.5. About 35 percent use LPG or other clean fuel. As previously mentioned, the DHS andUPME data do not provide the population shares for Table 8.5: Base Case Estimation of Scenario-Specific Relative Risks Ruralpopulation RR RRfor COPD Stylizedsituations share (%) for ARI in women I.Unimprovedwoodstovesoropenfire 25 3.0 4.4 11. Improvedwood stoves 20 2.0 2.7 111. Unimproved stoves and LPG (or other clean fuel) 10 2.0 2.7 IV. Improvedstoves andLPG(or other cleanfuel) 10% 1.5 ' 1.8 V. LPGor other clean fuel 35% 1.o 1.o Weighed average risk of Ito IV 2.3 3.2 190 situations Ito IV. Based on data from Guatemala (Ahmed and others 2005), it i s estimated that around 20 percent of rural households use a combination o f solid fuels and LPG in Colombia. This share is split evenly between unimproved and improved stoves so that the rural population share in111and IV is 10percent. Moreover, it i s assumedthat these households on average derive 50 percent of their cooking energy demand from LPG and 50 percent from solid fuels. O f the remaining rural population, 25 percent is assigned to situation Iand 20 percent to situation 11. It should be noted that there are no readily available data to substantiate this allocation. The shares are therefore subjected to sensitivity analysis inlater sections ofthis chapter. 8.14 Two more parameters must be assigned to solve the system o f equations (1) to (4) and arrive at the R R s presented in Table 8.5. One of them is the reduction in"excess" risk, "r", from using improved stoves instead of unimproved stoves. While there is limited guidance from the international literature on the size o f "r", there are several studies from around the world that present measurementso f particulate exposure from solid fuel use, particularly from cooking. Some results from Latin America are presented in Table 8.6. The 24-hour average concentration levels from open fire or traditional stoves are many times higherthan urbanair quality standards inmost countries. The improved stoves, such as the plunchu, produce PM2.5or P M ~ levels that are often s only 20 percent o f those from an open fire, and are even found to be less than 10percent o f that o f an open fire ina study inGuatemala by McCracken and Smith (1998). According to the figures in Table 8.6, the reduction inPM2.5 concentration appears even larger than reductions inPMlo. While the indoor concentration levels o f PM can be substantially reduced by using improved stoves, it is not clear that the health benefits are proportional. The concentration levels o f PM, even with an improved stove, are still substantially higher thanthose found inmost outdoor urbanenvironments. 8.15 Table 8.7 provides the results o f a study by Ezzati and Kammen (2002), which presents odds ratios for ARI in relation to indoor concentrations levels o f PMlo. Halving o f PMlo levels from 1,000 to 2,000 &m3 to 500to 1,000 cLg/m3can correspond to the reduction inconcentration levels achievable by using an improved stove instead o f an unimproved stove. This reduction in concentration level is associated with a reduction in the odds ratio o f about 50 percent for children under age 5 and 25 percent for the age group 5 to 49. The reduction in"excess" risk can be calculated from equation (2): r=(RRu-RRI)/(MU -1) (5) For children under age 5, r = (4.30 - 2.15)/(4.30 -1) = 65 percent. For age group 5 to 49, r = (3.79 - 2.77)/(3.79 - 1) = 36 percent. The average for the two age groups is around 50 percent. An "r" of 50 percent has therefore been applied inthe base case inTable 8.5 for ARI to.establish the relative order o fmagnitude o fthe RR insituation Iand 11. Table 8.6: Particulate Matter (PM) Concentrationsfrom Cooking Stoves ~ Concentrationin pdm3 hftxmm*ent traditional stove Openj?re/ Improved stove LPG Reference 24-hour PM3.5 --- ..................... 1,930............... 330 Guatemala(Albalak andothers 2001) ....... .......... -.... ..... - ..... ._ 24-hOW PMlo 1,210 520 40 ReferencedinAlbalak and others 24 hour PM2.5 520 88 45 (2001), adaptedfrom Naeherand 24-hoU PM2.5 868 152 --- others (2000) "..........._...."".......... ..... ........" " _ ... ~ ."...... ~ " PMio 600-1,000 300 50 Mexico (Saatkamp, Masera, and Kammen 2000) 191 Table 8.7: Odds Ratiosfor ARI PMO W m 3 ) ChildrenunderAge 5 Age Group 5 to 49 <200 1.o 1.o 200-500 2.42 3.01 500-1,000 2.15 2.77 1,000-2,000 4.30 3.79 2,000-3,500 4.72 ___ 2,000-4,000 --- 4.49 >3,500 6.73 --- 4,000-7,000 5.40 >7,000 7.93 Source: EzzatiandKammen(2002). 8.16 One additionalparameter needsto be assigneda value inorder to solve equations (1) to (4). There are two logical choices o f parameters, that is, the average risk ratio RRSFor the risk ratio associatedwith the use o f an unimproved stove (RRu). A logical candidate for the base case value of RRsFis the central estimate o f the RR from the international literature in Table 8.3, while a logical value for RRumight be the upper end o f the confidence intervals. The former was selected in this report given that the central estimates reflect a diverse set of situations reported in the literature. ThusmFequal is to 2.3 for acuterespiratory infections andto 3.2 for COPD inwomen. 8.17 Equations (3) and(4) implicitly assume that the risk o f illness is proportional to the share o f LPG in households that use both solid fuels and LPG (or other clean fuels). For instance, the "excess" risk o f illness is reduced by 50 percent if a household derives 50 percent o f cooking energy demand from LPG. While the study by Ezzati andKammen (2002) presented inTable 8.7 might suggest that "excess" risk is reduced by around 50 percent for a 50 percent reduction in PMlo concentration levels from 1,000 to 2,000 pg/m3to 500 to 1,000 pg/m3,it is not clear that a 50 percent reduction in solid fuel consumption translates to a 50 percent reduction in P M concentration levels. While Albalak and others (2001) estimate 45 percent lower PM3.5 levels with the use o f a combination o f open fire and LPG compared to open fire only, the percentage difference insolid fuel consumption is not clear. 8.18 Usingthe parameter values discussedabove, the solution to equations (1) to (4) is the RRs presented in Table 8.5. Only COPD in women and ARI are included. While there is moderate evidence for an increased risk o f COPD inmen, it is not included inthis report. For ARI, however, both childrenunder age 5 andwomen over age 15 are included, although ARI inadult women is not includedinthe meta-analysis results presented inSmith, Mehta, andFeuz (2004) andDesai, Mehta, andSmith (2004). The studybyEzzatiandKammen(2002) providessome evidence o f similar ARI riskratios for childrenunder age 5 andthe age group 5 to 49. A sensitivity analysis is performedfor ARI inwomenover age 15inthe benefit-cost ratio estimations later inthis section. 8.19 The population shares and the relative risk ratios in Table 8.5 allow a base case estimation o f the health benefits o f interventions such as improvedstoves and switching to clean fuels (Table 8.4). Inorder to estimate benefit-cost ratios, however, the costs o f interventions need to be estimated. Inaddition to costs o f improved stoves andLPG stoves (or stoves for other clean fuels), this exercise involves an assessment o f household energy consumption for cooking in order to estimate the recurrent cost o f LPG requirements or other clean fuels. In addition, time savings from less fuelwood collection may be an important benefit, for many households, o f 192 switching to improved stoves or clean fuels. Fuelwood consumption must therefore be estimated for the various stylized situations or scenarios inTable 8.4. A first step in estimating the costs o f interventions is therefore to consider stove efficiencies. Stove Efficiency 8.20 Figure 8.4 presents an energy efficiency ladder for stoves, and typical costs, that are often cited in the research literature on fuel use and indoor air pollution (for example, Baranzini and Goldenberg [1996]; Luo and others [1999]; and Saatkamp, Masera, and Kammen [2000]). The stove efficiency ladder provides a generic perspective on potential energy savings from improved wood and charcoal stoves and kerosene, LPG, and electric stoves compared to traditional stoves. According to Figure 8.3, improved wood and charcoal stoves are about 50 percent more efficient thantraditional stoves, andLPGandelectric stoves are twice as efficient as the improvedwood and charcoal stoves. Figure8.4: StoveEfficiencyand CapitalCosts 80 1 70 60 gg i.J 6- 50 `8 30 cog 20 10 0 8.21 A study o f stove efficiency inColombia was conductedby the Department ofPhysics o f the National University o f Colombia. The results o f the study were provided by UPME for the purposes o f this report, and are presented inFigure 8.4. The study estimated the stove efficiency for three different sizes o f potskettles. The efficiency for electric plates was around 80 percent for all three pot sizes. LPG and natural gas stoves had an efficiency o f 45 to 55 percent for the two smallest pot sizes. The efficiency for the largest pot size was over 75 percent. For a "wood firebox," an improvedwood stove, the efficiency was below 10percent for the two smallest pots, but about 30 percent for the largest pot. The efficiency o f "fuelwood," or a traditional open stove, was less than 5 percent for the smaller pots, and20 percent o fthe largest pot. 8.22 For the most part, the results from this Colombian study are consistent with the generic efficiency ladder illustrated in Figure 8.5. A study of the plancha woodstove in Guatemala reported an efficiency o f about 10 percent, very similar to the efficiency o f using open fire. A modified version of the plancha had an efficiency o f about 12 percent (Boy and others 2000). 193 McCracken and Smith (1998) reportedan efficiency o f 13 to 14percent for theplancha andopen fire. Saatkamp, Masera, andKammen(2000) reportedestimates of stove efficiencies inJaracuaro, Mexico, and found that the efficiency of the lorena woodstove is not much different from traditional open stoves. Figure 8.5: Stove Efficiency from a Study in Colombia 90 I 80 70 g 60 f!1: 50 2.9 Itr pot I5.5Itrpot 7.2 Itr pot 20 1 10 0 Electric LPG Natural gas Wood Firebox Fuel Wood Source: Study conductedby the National University of Colombia, Departmentof Physics. The results of the studywere providedbyUPME. 8.23 Many communities in Latin America have adopted the plancha and lorena woodstoves. While these stoves are often not very efficient, they are equipped with a chimney that removes the smoke from the indoor environment and therefore offer important potential health and quality-of- life benefits. A simple lorena stove is made from mud-clay mixed with sand, and a metal tube chimney. The lorena andplancha stoves have also been built from brick. Several versions and offspring o fthese stoves have also beendeveloped inorder to improve stove efficiency. Fuelwood Consumption 8.24 In households that use fuelwood, there are typically three types of situations. Some households use open fireltraditional woodstoves. Others use improved woodstoves. Finally, some households use fuelwood in combination with LPG or another type o f cleaner fuel. Based on data from UPME, it is estimated that the average householdusingfuelwood has a consumption o f 3.15 tons per year. However, household consumption for a given household size will vary depending on woodstove efficiency andwhether or not the householdalso uses other fuel types for cooking. 8.25 To estimate householdfuelwood consumption, the following equations are used: ev Hu=e1HI (6) HUL=amHU (7) HIL=aLHI (8) SuHu + SIHI + SUJIUL + SILHIL = 3.15 (9) 194 where His annual householdconsumption o f fuelwood intons; S i s the percentage o f households usingunimproved stoves (U), improvedstoves (I), o f LPGandfuelwoodwith unimproved a mix stove (UL), and a mix o f LPG and fuelwood with improved stove (IL); "e" i s stove efficiency; and "a" is the fuelwood consumption share inhouseholds using a mix of LPG and fuelwood. In both cases, a = 0.5 and measured in effective energy (product o f net heating value and stove efficiency). The values o f "a" and S are the same as applied in Table 8.5. The stove efficiency, "e", is based on the findings illustrated in Figure 8.4 and is set to 10 percent for unimproved stoves and 15 percent for improved stoves, inboth cases representing an average o f the different pot sizes. 8.26 Solving the system o f equations (6) to (9) provides the following estimates o f annual household fuelwood consumption as presented in Table 8.8. These estimates are based on the assumption that the groups o fhouseholds have, on average, the same demand for cooking energy. Table 8.8: EstimatedAnnualHouseholdConsumptionofFuelwood Stove technology: , Fuelwood consumption (tons) Unimprovedstoves 4.40 Improvedstoves 2.90 Unimprovedstoves andLPGstoves 2.20 Improvedstoves andLPGstoves 1.45 8.27 It is important to assess how realistic the fuelwood consumption inthese four cases is. Saatkamp, Masera, andKammen (2000) estimate fuelwood consumption inJaracuaro, Mexico, in the range of 0.5 kilograms (kg) to 1.0 kgper mealper person for the Iorena stove and open fire. For two meals a day, and an average household size o f 5, this implies an annual fuelwood consumption o f 1.8 tons to 3.6 tons per year. For three meals a day, the annual consumption would be 2.7 tons to 5.4 tons per year. This i s in the range o f the estimated fuelwood consumption in Table 8.8. Boy and others (2000) estimate a fuelwood consumption o f 6 kg for the preparationo f 0.45 kgo fbeans and 1.35 kgo ftortilla, usingaplancha stove. Ifthis food were prepared twice a day, the annual fuelwood consumption would be 4.4 tons. Cost of Interventions 8.28 Estimated annual recurrent cost o f switching from fuelwood to commercial energy, or from a combination o f fuelwood and LPG to LPG only, i s presented in Table 8.9. At energy prices (in 2004) in Colombia, natural gas is found to be the least-cost option, followed by LPG. The cost of using electricity to replace fuelwood is found to be several times higher than using natural gas or LPG as replacements for fuelwood. Furthermore, the costs o f using electricity to replace fuelwood are identical for households that use unimproved woodstoves and households that use improved woodstoves (with 10 and 15 percent efficiency). This i s because o f the assumption that both households have the same effective energy demand. While natural gas seems to be the least-cost option, availability o f natural gas to all rural households is unlikely in the short to mediumterm. LPGtherefore seems to be the most viable option. 8.29 It shouldbe noted that the cost values presented inTable 8.9 are likely to underestimate the costs o f providing commercial energy to distant ruralareas. However, over 30 percent o f rural households inColombia already use LPG and other commercial energy sources according to the Colombia DHS 2000. Thus, supplying these fuels to other rural households may not be substantially more expensive than to households that already use commercial fuels. 195 Table 8.9: Annual RecurrentCost ofCompleteFuelSubstitution Annual costper household ('000 pesos) LPG (bottles) Stove technology 17.7gallon 6.6 gallon Naturalgas Electricity Unimproved stoves 206 256 99 608 Improvedstoves 206 256 99 608 Unimproved stovesandLPGstoves 103 128 _-_ --_ Immovedstoves andLPGstoves 103 128 --- _-_ Table 8.10: BaselineParametersfor Estimatingthe CostofFuelSubstitution Fuelwood Average gross energy content of fuelwood (MJperkg) 19 Averagenet energy content offuelwood(MJ per kg) 11 Propane (LPG) Average stove efficiency (propane) 55% Average energy content ofpropane(Btdgallon) 92,000 Costper bottle (17.7 glbottles)-pesos 39,000 Cost perbottle (6.6 glbottles)-pesos 18,000 Natural Gas Averagestove efficiency (gas) 55% Averageenergy content ofnaturalgas (Btdm3) 35,395 Cost ofnaturalgas (residential)-pesos/m3 406.45 Electricity Average stove efficiency 80% Cost ofelectricity (pesoskWh) 350 Sources: Energy content of LPGandnatural gas, andprices of LPG, natural gas, and electricityare basedon data from UPME. Gross and net energy content of fuelwood (gross and net heating content) and stove efficiencies are from a study by the NationalUniversityofColombiaprovidedbyUPME. Table 8.11: CostEstimatesofImprovedWood StovesandLPG Stoves cos? Low High Capital Cost Improvedstove 145,000 (60) 290,000 (120) LPG stove 145,000 (60) 145,000 (60) Annualized Cost Improvedstove 21,000 42,000 LPGstove 21,000 21,000 1. Values without brackets are Colombianpesoamounts. Values inbracketsareUS$ equivalents 196 8.30 Table 8.10 presents the baseline parameters that were used to estimate the cost o f switching to commercial energy. These parameters are based on data from UPMEandresults o f a study conductedby the National University o fColombia. 8.31 Capital costs and annualized costs o f improved stoves and LPG stoves are presented in Table 8.11. Capital costs are adapted from Ahmed and others (2005) from Guatemala. While simple improved stoves usedinmany developing countries are found to be quite inexpensive, as presented inFigure 8.3, the type o f improved stoves commonly usedinLatin America is far more expensive, as indicated in Table 8.11. Annualized costs are calculated by employing a useful life of 10years andan annual discount rate o f 10percent. Benefit-Cost Analysis 8.32 A benefit-cost analysis is conducted for the five interventions shown inTable 8.12, which are based on the stylized situations in Table 8.4. The estimated benefits o f these interventions are presented inTable 8.13. Avoided cases of ARI andCOPD are estimated from the relativerisk ratios inTable 8.5 andbaseline estimatesofannual casesofARIandCOPD. Baselinecasesarepresented inLarsen (2004). The monetary benefits of avoided cases are calculated from the estimated unit costs o f ARI and COPD morbidity and mortality, also presented in Larsen (2004). Unit costs o f morbidity include medicaltreatment cost, value o ftime losses(at 75 percent o fwages), andDALYs valued at GDP per capita as a proxy for the cost o f reducedwell-being."g Child mortality is valued byusingthe humancapitalapproach(HCA) ofdiscountedlife earningslosses. 8.33 Adult mortality is valuedbythe humancapital approach (HCA) as a lower boundandthe value o f statistical life approach (VSL) as a higher bound. VSL is derived from benefit transfer from the United States and other high-income countries using an income elasticity o f 1.0, based on the midpoint value from the range o f US$1.5 million to US$2.5 million as estimated by Mrozek and Taylor (2002). As seen inTable 8.13, the total healthbenefits o fthe interventions are greatly influencedby the choice o fvaluation technique for adult mortality. 8.34 An estimate of the value of time savings from reduced fuelwood collection is also included in Table 8.13 for each intervention. As a base case, it i s assumed that a household that uses an unimproved wood stove spends on average 30 minutes per day on fuelwood collection. Intervention (2) provides a 100 percent time saving while, for instance, intervention (1) provides a 33 percent time saving. These estimates are derived from Table 8.8. In Table 8.13, time i s Table8.12: Interventions Scenarios Description FromIto I1 From unimproved stove to improved stove FromIto V Fromunimproved stove to LPG From I1to V Fromimproved stove to LPG . FromI11to V Fromunimproved stove and LPGmix to LPGonly FromIV to V From improved stove and LPGmix to LPGonly ' I 9The monetary valuation o f DALYs in relation to the cost-of-illness is still substantially less than the difference between willingness to pay for avoiding a case o fillness and cost o f illness found from studies in the United States. However, there is not a sufficient number o f studies to rely on from Colombia. DALYs are therefore used as a proxy for reducedwell-being. 197 valued at 75 percent of average rural wages. Intotal, the estimated benefits of time savings are close to the lower bound of health benefits of interventions (2) to (5). The estimated benefits in Table 8.13 represent a base case. A sensitivity analysis is performed later inthis section. Table8.13: EstimatedAnnualBenefitsofInterventions (1) (2) (3) (4) (5) From From From From From Intervention scenario I t o I I I t 0v I I t ov IIIto v IVtO v Avoidedcases ofARI 918,063 1,836,127 734,45 1 367,225 183,613 Avoidedcases of ARI inchildren< 5 589,501 1,179,002 471,601 235,800 117,900 Avoidedcases of ARI infemales 15+ 328,562 657,125 262,850 131,425 65,712 Case fatality rate(CFR) inchildren< 5 0.00016 0.00016 0.00016 0.00016 0.00016 Avoidedchilddeaths 96 193 77 39 19 Cost perARI case inchildren<5 (COI+DALY) pesos 44,000 44,000 44,000 44,000 44,000 Costper ARI case infemales 15+ (COI+DALY) pesos 80,000 80,000 80,000 80,000 80,000 BenefitsofreducedARI morbidity(<5 yr) billion pesos 25.9 51.9 20.8 10.4 5.2 Benefitsof reducedARImorbidity(F 15+) billion pesos 26.3 52.6 21.0 10.5 5.3 Cost ofmortalityper death(HCA) millionpesos 136 136 136 136 136 Benefitsof reducedARI mortality(<5 yr) billionpesos 13.1 26.2 10.5 5.2 2.6 TotalbenefitsofavoidedARI cases (billion pesos) 65 131 52 26 13 Avoidedcases ofCOPD 1,480 2,960 1,184 592 296 Case fatality rate ofCOPD 0.186 0.186 0.186 0.186 0.186 AvoidedCOPD deaths 275 549 220 110 55 Cost of COPDper case (COI+DALY) millionpesos 11.6 11.6 11.6 11.6 11.6 Cost of COPDmortalityper death(HCA) million pesos 26.3 26.3 26.3 26.3 26.3 Cost of COPDmortalityper death(VSL) million pesos 293 293 293 293 293 TotalbenefitsofavoidedCOPD cases (billion pesos), (HCA for mortality) 24 49 20 10 5 TotalbenefitsofavoidedCOPD cases(billion pesos), (VSL for mortality) 98 195 78 39 20 Numberof individuals('000) receivingintervention 3086 3086 2469 1235 1235 Averagehouseholdsize 5 5 5 5 5 Numberof householdsreceivingintervention 617,270 617,270 493,816 246,908 246,908 Householdhelwoodsavings (relative to Scenario11) 33% 100% 67% 50% 33% Householdtime savingsperday (hrs) 0.17 0.5 0.33 0.25 0.17 Average ruralwages (pesosperhour ) 2,000 2,000 2,000 2,000 2,000 Value of time (% ofwages) 75% 75% 75% 75% 75% Value of time (pesos per hour) 1,500 1,500 1,500 1,500 1,500 Note: COI = cost of illness; DALY = disability-adjustedlife year; VSL = value of statistical life; COPD = chronic pulmonaryobstructivedisease; HCA =humancapitalapproach; ARI =acuterespiratoryillness. 198 8.35 Table 8.14 presents the estimated annual costs o f interventions. LPG represents 80 to 85 percent o f total cost o f interventions (2) to (9,while the annualized cost o f an LPG stove is less than 10percent o f total cost (interventions (2 and (3)). A tentative estimate of the program cost o f promoting and implementing improved stoves and fuel switching to LPG, and sustaining a stove inspection andmaintenance program, is also included inTable 8.14. The estimated cost is basedon an incrementallocalgovernment staff requirement of 1to 4 inavillage with 300 to 600households. 8.36 Table 8.15 presents estimated benefit-cost ratios for the five interventions for which benefits and costs are provided in Tables 8.13 and 8.14. Eight ratios are estimated for each intervention. Four ratios include only the health benefits and the other four ratios include both health benefits andbenefits o f time savings from reduced fuelwood collection, that is, total benefits. Each set o f four ratios represents a combination o f low and high benefits and costs. As shown in Table 8.13, the low benefits reflect adult mortality valuation usingthe HCA, while the highbenefits reflect adult mortality valuation using a VSL benefit transfer to Colombia. The low and highcosts from Table 8.14 reflect low andhighcost estimates o f LPG, improved stoves, and an intervention program. 8.37 The estimated benefit-cost ratios o f adoption o f improved stoves by far exceed unity even without the value o f time savings. Even incase o f the high-cost-low-health benefit the ratio is slightly higher than 2, indicating that the estimated benefits are twice as high as the estimated costs. The benefit-cost ratios for intervention (2) are also generally higher than unity, but no more than unity in the case o f high cost-low benefits. The ratios for the intervention to switch from improved stoves to LPG are only consistently higher than unity if households value their time at somewhere close to 75 percent o f average rural wages. While this is unlikely to be the Table 8.14: EstimatedAnnual Costs ofInterventions (1) (2) (3) (4) (5) From I to v From From From From Intervention scenario I toII 11to v 111to v IVtO v Interventionprogramcost perhousehold(US$) low 5 5 5 5 5 Interventionprogramcost per household(US$) high 10 10 10 10 10 Interventionprogramcostper household(pesos) low 12,500 12,500 12,500 12,500 12,500 Interventionprogramcostperhousehold(pesos)high 25,000 25,000 25,000 25,000 25,000 TOTAL COSTOFINTERVENTIONPROGRAM (billion pesos) low 7.7 7.7 6.2 3.1 3.1 TOTAL COSTOF INTERVENTIONPROGRAM (billionpesos) high 15.4 15.4 12.3 6.2 6.2 Annualizedcost ofimprovedstove (pesos) US$60per stove 21,453 Annualizedcost ofimprovedstove (pesos) US$120per stove 42,906 Annualizedcost ofLPGstove (pesos)US$60per stove 21,453 21,453 0 0 Totalannualizedstovecost (billion pesos) low 13.2 13.2 10.6 0.0 0.0 Totalannualizedstove cost (billion pesos) high 26.5 13.2 10.6 0.0 0.0 ,Annualcost ofLPGperhousehold(pesos) low 206,448 206,448 103,224 103,224 Annual cost ofLPGperhousehold(pesos) high 255,533 255,533 127,767 127,167 Totalannualcost ofLPG(billion pesos) low 127.4 101.9 25.5 25.5 Total annual cost ofLPG(Billion oesos) high 157.7 126.2 31.5 31.5 199 case for poorer households, households that have good income opportunities and thus high opportunity cost o f time may value their time at this rate. The benefit-cost ratios for intervention (4) are naturally very close to the ratios for intervention (2), andthe ratios for intervention (5) are close to the ratios for intervention (3). Table 8.15: Benefit-cost Ratios of Interventions Health benejts Totalbenefits costs Low High Low High Intervention1:Unimprovedto LOw 4.3 7.8 7.0 10.5 improvedstove High 2.1 3.9 3.5 5.2 Intervention2: Unimproved Low 1.2 2.2 2.3 3.3 stoveto LPG High 1.o 1.7 1.9 2.1 Intervention3: Improvedstove Low 0.6 1.1 1.4 1.9 to LPG High 0.5 0.9 1.1 1.5 Intervention4: Unimproved Low 1.3 2.3 2.4 3.5 stoveLPGto LPGonly High 1.o 1.7 1.8 2.6 Intervention5: Improved Low 0.6 1.1 1.4 1.9 stoveLPGto LPGonly High 0.5 0.9 1.1 1.5 Sensitivity Analysis 8.38 As discussed throughout this chapter, there are many critical parameters in the benefit- cost analysis that involve significant uncertainty. A list of the most important parameters follows: 0 The reduction in "excess" health risk o f an improved wood stove compared to an unimproved wood stove or open fire (Table 8.5); 0 The weighted average relative risk o f illness (AN and COPD) from using solid fuels (Table 8.5); 0 Using a relative risk ratio for A N in adult females that is similar to the risk ratio for children under age 5; 0 The population shares assigned to each scenario or typical solid-fuel-use situation (Table 8.5); and 0 Time savings from less or no fuelwood collection valued at 75 percent of average rural wages. Notes on Benefit-Cost Analysis Sensitivity Parameters: Lowering the "excess" risk reduction of improved stoves from 50 percent to 30 percent: This reduces the benefit-cost ratio to 1.2 in the high-cost-low-benefit scenario o f intervention (1) without time savings benefits. 0 Lowering the weighted average relative risk ratio for ARI and COPD by 20 percent: This reduces healthbenefits of interventions by close to 30 percent. However, the benefit-cost 200 ratios for adopting improved stoves are all still well above 1.O, and well above 1.O for switchingfrom unimproved stoves to LPG iftime benefits are included. Excluding ARI in adults from the benefit-cost analysis: This reduces the benefit-cost ratios (health benefits only) by 15 percent (case o f highbenefits) to 30 percent (case of low benefits). The benefit-cost ratios for improved stoves are still well above unity even without including the time savings benefits, and above unity in half the cases o f switching from an unimproved stove to LPG (without time-savings benefits included). Changingthe population share from 25 percent with an unimproved stove and 20 percent with an improved stove to 20 percent with unimproved and 25 percent with improved: This has only a minor impact onthe benefit-cost ratios. Reducing the time-savings benefits from 75 percent to 50 percent of rural wages: This reduces the benefit-cost ratios by about 10 percent for the high-benefit scenario, and by 15 to 20 percent for the low-benefit scenario. Reducing the time-savings benefits from 75 percent to 25 percent o f rural wages: This brings the benefit-cost ratios for intervention (3)-improved stove to LPG-to below unity for the low-benefit scenario. Table 8.16: HouseholdsUsingSolidFuels Percent of households Urban Rural Total GNIper capita (2001) Bolivia 2003 8 79 34 950 Colombia2000 2 61 18 1890 DominicanRepublic2002 3 24 10 2,230 Guatemala1998-99 32 78 57 1,680 Haiti 2000 89 98 95 480 Nicaragua2001 38 92 60 370 Peru2000 11 87 39 1,980 Source: DHS data. Effectivenessof IndoorAir PollutionControlPrograms 8.39 The preceding benefit-cost analysis did not consider the impact o f the speed and rate o f adoption o f improvedstoves and switching to LPG or electricity onthe potential effectiveness o f an indoor air pollutioncontrol program. As seen from Table 8.15, household valuation o f time savings is likely to play an important role in changing to LPG, especially if the household already has an improved stove. Table 8.16 presentsthe percentageofurbanand rural households that use solid fuel for cooking. O fthe countries inLatinAmerica andthe Caribbean for which DHSdata with fuel use are available, only the DominicanRepublic uses solid fuels less than Colombia. Figure 8.6 indicates that there is a highpositive correlationbetween the percentage o f households that use solid fuels as the maincooking fuel andincomeper capita inLatinAmerica andthe Caribbean. 8.40 Figure 8.7 presents rural household use o f solid fuels for the same countries as inFigure 8.5. The responsiveness o f fuel substitution to income in rural areas seems less pronounced than at the national level, suggesting that an active rural energy and environmental health policy can play a role and help speed up the transition to cleaner fuels. The difference between the DominicanRepublic (inthe upper left corner) and the other countries becomes more striking than for solid fuel use at the national level. 201 t Figure8.6: SolidFuelsas MainCookingFuelinLatinAmerica and Caribbean I 2500 1 I 0 0Yo 20% 40% 60% 80% 100% Percent of Households Source: Solidfuel use data are from DHS 1998/99-2003. Gross nationalincome (GNI) is from the World Bank. Figure8.7: SolidFuelsas Main CookingFuelinRuralLatinAmerica andthe Caribbean II 2500 , 1 500 - * - 0 4 4 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Pecent of Rural Households ~~~~ Source: Solid fuel use data are from DHSfrom 1998/99-2003. Gross nationalincome (GNI) is from the World Bank. Table8.17: ChangeinShareof HouseholdsUsingSolidFuels Country Period Urban Rural Total Bolivia 1994-1998 -3% 0% -6% Bolivia 1998-2003 +3% -1% +2% Colombia 1995-2000 -1% -6% -4% Dominican Rep. 1991-1996 -15% -33% -22% Dominican Rep. 1996-2002 -2% -18% -9% Source: DHSinrespectivecountries. 8.41 Table 8.17 presents changes inthe percentageo fhouseholds usingsolid fuels over a four to six year period. Data are available for only three Latin American and Caribbean countries inthe DHS database. The decline inhousehold use of these fuels is very pronounced inthe Dominican Republic, even over such a short period of time. In Colombia, the percentage decline is largest in the ruralareas. The change insolid fuel use inBoliviawas mixedfor the two periods of data. 202 Table8.18: Summaryof Recommendationsfor AddressingIndoor Air PollutioninColombia Priority short (S). medium(w, Recommendation and long term (L) Responsible government agencies Design andimplementationof a cross- sectoralprogramto addressindoorair MSPS, MAVDT,MinistryofEnergy, pollutionthat includesthe interventions S INS, CARs recommendedbelow. Evaluateexistingimprovedstoveprograms andimplementmeasuresto ensure improveddeliveryandoperationofthe S MAVDT,MinistryofEnergy,CARS programs. Establishdifferentmechanismsto build awarenessofhealtheffects of indoorair S MAVDT,MSPS, INS, CARS pollution, particularly inruralcommunities. Include,inhousingsubsidyprogramsfor rurallow-incomehousing(Yiviendade Inter& Social), requirements for building codesandhousingdesigninpoor S MAVDT, Municipalities, Departments communitiesto allow for improved ventilation, includingdesignofchimneys. Evaluateavailability ofLPGandother cleaner fuels inareas that predominantly use fuelwood, andimplementactions to S MinistryofEnergy, UPME improveavailabilityandaccess to fuelwood users ina safe andcost-effectivemanner. .Implementa researchprogramto improve understandingof underlyingfactorsthat S MSPS, MAVDT, IDEAM,UPME affect exposurelevels. Extendthe coverageofruralelectrification programs. S MinistryofEnergy, UPME ConclusionsandRecommendations 8.42 It would be advisable to implement a program o f cross-sectoral interventions to tackle indoor air pollution in Colombia in the short term. The adverse health impacts o f indoor air pollution clearly and disproportionately affect the poorer segments of society. Based on the experience from countries at similar lcvels o f development, the associated benefits derived from such a programare typically realized reasonably quickly. Suggestedinterventions mightinclude: 0 Evaluating existing improved stove programs and implementing measures to ensure improved delivery and operation o f the programs and to maximizetheir effectiveness and efficiency in contributing to the achievement o f improved health outcomes in the population groups most affected by indoor air pollution, inaddition to fuel efficiency. 203 0 Establishing different mechanisms to build awareness o f the health effects o f indoor air pollution, particularly in rural communities, through existing outreach programs, such as those for ruralhealth care. Including, in housing subsidy programs for rural low-income housing (Vivienda de Inter& Social), requirements for buildingcodes and housing design inpoor communities to allow for improved ventilation, including the design o f chimneys. 0 Evaluatingthe availability o f LPGandother cleaner fuels inareas that predominantly use fuelwood, and implementing actions to improve availability andaccess to fuelwood users ina safe andcost-effective manner. 0 Extending the coverage o f ruralelectrification programs. 204 THE ENVIRONMENTAL COST OF ACCELERATED URBAN GROWTH In Colombia, a lack of adequate planning to accompany rapid urban growth has contributed to increasedrisks to thewelfare of thepopulation. This chapter examines two sectors in Colombia that are theprimary contributors to such risks-housing and solid waste management-nd the challengesof mitigating these risks. In the housing sector, the supply of formal housing has not kept pace with rapid urban population growth. Inadequate supply, coupledwith inadequatehousingpolicies, has resulted in the expansion of the informal housingsector. Similarly, increasing amounts of waste generated by the growing population have not been suflciently managed. Consequently, unsafe waste disposal practices, such as uncontrolled open-air dumping and burning of wastes, are common. Thoseunable to aflord quality housing are the most aflected by these dejciencies, often living in poorly constructedhousing in informal settlements,situated in areasprone to natural disasters or close to unsafe waste disposal sites. To address these problems, the chapter proposes several recommendations, including review of existing policies and programs, development of newpolicies, andsimplification and improved enforcement of regulations. Introduction 9.1 This chapter examines the relationship between environment and housing policies in Colombia, and the relationship between environment and urban development more broadly.lZ0Linkages between environment and urban development can be analyzed at various levels. At a macro level, urban development and housing construction in particular affect the urban environment in the form o f congestion andair pollution, andalso byjeopardizing the quality o fpublic green spaces. At a micro level, housing construction also affects indoor environments, through its impacts on available space and the quality o f indoor air. 9.2 This chapter focuses specifically on the environmental effects o f Colombia's housing policies, since they could play a role in the construction o f dwellings that are poorly ventilated, and the unauthorized construction o f dwellings in areas prone to natural disasters. As such, the chapter examines the regulatory features o f housing policies that have environmental implications. In this context, the chapter's recommendations center on how such policies can be amended and/or enhanced in order to minimize negative environmental impacts associatedwith their implementation. 9.3 With respect to the country's housingpolicies, three primary factors contribute to environmental concerns: (a) the institutional, legal, and regulatory framework that governs urbanplanning; (b) informal housing; and (c) housing subsidy programs, which generally provide few incentives for the construction of environmentally sound housing units. This chapter examines these three factors and provides recommendations for ways inwhich adverse environmental effects can be reduced. ~~~ Richard Morgenstem and Emesto Shnchez-Triana authored this chapter, which draws heavily from background documents prepared for this study by L e Blanc (2005) andBlackman andothers (2005). 205 9.4 Inaddition, the chapter discusses issuesassociatedwith the design andimplementation of waste management activities in Colombia, and summarizes key points relevant to new and existingunresolved policy issues. Historically, the development andimplementationo f waste management programs has been a relatively low priority in Colombia. Over the last decade, however, a number o f large cities have progressed from situations where it was not uncommon to find waste dumped in streets, sidewalks, waterways, parks, empty lots, andthe sewage system, to the development o f formal waste disposal sites. 9.5 Although an estimated two-thirds o f waste generatedis disposed o f in landfills, mostly indensely populated urban areas, over half o f the municipalities in Colombia-typically representing the lower- income areas o f the country-still do not have appropriate disposal facilities. Even in locations where landfillsare inuse, disposal is largely unregulated andstandardsfor landfill development andoperation do not exist. In areas on the outskirts o f certain large cities such as Bogota, Medellin, and Cali, inadequate management o f leachate discharges containing high concentrations o f toxic andother hazardous substances is common. 9.6 The following sections discuss the environmental effects o f urban development policies in Colombia, the government's response in addressing these effects, and challenges to policy implementation. In addition, waste management issues, challenges to adequate waste management, and the effectiveness and efficiency o f policies designed to address such challenges in Colombia are examined. UrbanGrowthandEnvironmentinColombia 9.7 Like most countries in LatinAmerica, Colombia i s highly urbanized. Around 32 million people, or 72 percent o f the national population, live inurbanareas. Over 20 percent o f these residents live inthe capital city o f Bogotb, with a population o f 7 million, followed by three cities with populations between 1 million and 5 million, 34 medium-sized cities with populations between 100,000 and 1million; and over a thousand urban centers with fewer than 100,000 inhabitants. Recent projections indicate that the urban population will reach 40 million inthe next 10 years. This urban growth has been fueled by rural-urban migration, but also by the migration o f victims of violence, particularly in the case o f Bogota (Persaud andothers 2003). 9.8 Cities have become Colombia's main source o f growth. The most productive sectors o f the economy are located in its urban centers, inwhich the seven main cities, accounting for 45 percent o fthe urban population, generate around 65 percent of GDP. Bogota alone accounts for approximately 21 percent o f the national urbanpopulation andcontributes to over 22 percent o f GDP. Unbalanced Growth of Cities 9.9 The recent urban growth i s perceived to have occurred largely without the controls o f formal planning (see for example, CONPES 3305 of 2004). City expansion has generated informal and disorderly growth inurban peripheries, accompanied by a deterioration o f andpopulation loss inthe older city centers. 9.10 The dynamic o f suburbanization in Colombia is perceived to be characterized by deficient land use in areas o f environmental and agricultural importance. In turn, low densities in the peripheries have resulted in the development o f large conurbations,12' presenting challenges for planning. With respect to I*'Predominantlyurbanregionsincluding adjacenttowns andsuburbs. 206 housing development in these areas, unplanned urban growth has been accompanied by a lack o f formal housing supply, urban landshortages inmost cities, and disorderly public transport. 9.11 The country's city centers have experienced two disparate events: (a) population flight in some central areas, and (b) renovation and rehabilitation o f medium- and high-income residential zones. This former occurrence is characterized by progressively decaying housing stocks where marginal activities often take place. Inthe latter, commercial zones andoffices have expanded to old residential districts in which newly specialized urban subcenters have been created. In these subcenters, high-rises have been builtwhere older homes once stood. Thisprocess ofurbanrenewalhas generally occurred without formal planning, andoften with undesirable effects on the urbanstructure, including(CONPES 3305 o f 2004): 0 Inadequate infrastructure (roads, networks) and public spaces (parks), where existing infrastructure hadbeen provided initially for populations three to four times smaller. 0 Diminishedenvironmental quality, such as the reduction or removal o f green andopen spaces. 0 Increased roadcongestion androad deterioration. Overall, urban growth has been an unbalanced process, with significant consequences both on the quality o f life o f inhabitants andthe productivityandsustainability o f cities. Growth of Informal Housing 9.12 Precarious (informal) settlements constitute the most visible manifestation o f poverty and inequality in a primarily urbanized country. The natural growth o f the cities, migration from the countryside, absence o f formal housing alternatives for the population, andinefficiency o f administrations andpolicies, among other factors, have generated a dynamic o f informal andincomplete urbangrowth in Colombian cities (Caicedo andothers 2002). 9.13 Informal urbanization results in economic, social, and environmental consequencesthat not only affect lower-income groups, but the urban population as a whole. The environmental impacts o f informal urbanization include deterioration in the quality o f life, deficiencies in the provision o f public services, andthe occupation of zones not suitable for urbanization. Settlements inthese zones have contributed to loss o f green areas and increased pollution, among other factors, that have led to an increased risk o f naturaldisasters (such as landslides). 9.14 Recent estimates indicate that at least 1.3 million homes are in precarious condition. These dwellings lack basic services, are constructed with inadequate materials, andor are located in zones o f high natural risk.'" Based on information from the cadastre, these dwellings-16 percent o f urban homes-represent precarious establishments inthe five largest cities o f Colombia. For medium-size cities (populations between 300,000 and 1million), the corresponding percentage is 19 percent, and 24 percent of homes in cities with 100,000 to 300,000 inhabitants are in precarious condition (CONPES 3305 o f 2004). Thus, this informal urbanization is not limited to the main cities, but rather is a widespread phenomenon. '*'The figures from the Department of National Planning (DNP) on informal or substandardhousing include units that cannot be brought up to normal standards andunits located inzones o f natural risks, andunits with "qualitative deficit" (insufficiencies in construction, deficient access to utilities or services, and so forth). These two types of units do not call for the same types o f intervention (dwellings pertaining to the second category are subject to upgrading, improvement o f access, and so forth, which wouldbringthem out ofthe "slum" category). Thus, the two categoriesshould be distinguished. 207 Figure9.1: Annual Gap betweenFormalHousing Constructionand CreationofNew Households a. A lragawsVsA vivknds I e p h Source: DNP-DDUF'RE. 9.15 The close linkages between informal urbanization and sustainable development have been recognized by the international community. Objective 11 o f the Millennium Development Goals aims to significantly improve the lives o fat least 100million slum dwellers by 2020. InColombia, the percentageo f the urbanpopulationliving inslums fell from 26 percent to 21.8 percent during 1990-2001. 9.16 The annual growth o f the formal housing deficit, measured as the difference between the number o f new households and the number o f formal units built at the national level, i s estimated to be 91,000 units, or 49 percent o f the 185,000 new households formed annually (Figure 9.1). In the country's five largest cities, the growth o f the formal housing deficit amounts to over 47,000 units per year, or 50 percent o f the annual new demand. Those households without formal housing have two alternatives: cohabiting with other households, or resorting to informal housing solutions. As implied by the statistics on the formal housing deficit, informal settlements have grown at higher rates than formal housing inthe largest cities inrecent years. 9.17 Insummary, rapidurbanizationinColombiahas outpacedthe capacity ofthe government to offer adequate services and prevent the development o f the informal housing sector. Tackling the issue o f informalhousing andmakinglandandhousingaffordable to low-income households continues to be fraught with difficulties. Inadequate access to financing for low-income households, low institutional capacity o f municipaladministrations, rigidity o f city planningnorms, andcumbersome delivery processeso f landtitles andbuildingpermits, areall significant obstaclesto tacklingproblems inthe housingsector, HousingPolicy-Main EnvironmentalDifficultiesandthe Government's Response 9.18 Itis widely accepted inColombiathat the country's difficulties informulating territorialpolicies, and in linking urban development with economic and social development, have been reflected in the development o f the country's cities (CONPES 3305 o f 2004). It is also acknowledged that in the 1990s, the performance o f national government interventions weakened on the territorial front, as characterized by the predominance o fpoorly coordinatedsectoral interventionsat the locallevel. 9.19 As mentioned inthe introduction to this chapter, with respect to the country's housing policies, three main factors contribute to environmental concerns: (a) the institutional, legal, and regulatory 208 framework governing urban planning; (b) informal housing; and (c) housing subsidy programs. These three factors are examinedbelow. 9.20 Institutional framework governing urban ulannin& The interactionbetween local governments and the national government has undergone important changes since the 1 9 8 0 ~originating in the process o f ~ decentralization and deepening with the Political Constitution o f 1991, which recognizes the autonomy o f local governments as a basic principle o f the nation's organization, and adopts principles that affect urban development. These principles were developed by Law 152 o f 1994, the Organic Law o f the Development Plan, and Law 388 o f 1997, the Law o f Temtorial Development, both o f which introduced new urban planningtools at the municipal level: a The Development Plan, which includes concrete programs andprojects that each mayor commits to undertake duringa three-year term; and a The Land Use Plan (Plan de Ordenamiento Territorial,POT). The POT is an instrument o f physical planning for the medium and long term, and is valid for 12 years. The POT synthesizes landuse patterns and land rights, and the planning, management, and financing instruments for urban development. It also provides an assessment of the ecological and economic potential o f certain areas andtheir scope for development (Lavadenz and others 2003). 9.21 Seven years after the promulgation o f Law 388 o f 1997, assessments o f the POT development process, andtheir adoptionby municipalities, highlightthe following points: a The implementation progress and quality o f the resulting plans are quite varied. While this observation is partly linked to the lack o f incentives provided to municipalities to prepare adequateplans, technical capacity also plays a key role (ibid.);'23 a Only a small proportion o f the municipalities that have formulated their POTs have applied the management andfinancing instruments put inplace by Law 388 o f 1997 (Le Blanc 2005); a Inmost cases, the linkages between the municipality's Development Planandthe POT are weak, as evidenced by inconsistencies in resource allocations, and in development strategies and objectives. The POT tends to be perceived by municipalities as a necessary step to comply with the law rather than a strategy for long-termplanning(ibid.). 9.22 One example o f the POT'Slimitations is found inthe landreserved for future residentialuse. The landset aside inthese territorial plans is insufficient to meet the needsof a growingpopulation. Inthe five largest cities o f the country, it is estimated that nearly 950 hectares each year would be required for housing development. Comparing this number with the number of hectares available for urbanization in the POTs (5,300 hectares), it is estimated that the land available for housing development in these cities will be exhausted within six years (COMES 3305 o f 2004). It is widely perceived that this largely artificial scarcity o f serviceable land encourages speculation in the land market, thereby preventing the provision o f housing to low-income households, and is a direct cause o f the development o f informal settlements. 9.23 Another problem related to the POTs is their strictly municipal scope. As peripheral towns gather around large core cities, forming functional agglomerations, municipal frontiers decreasingly reflect the economic, social, and environmental realities o f urban development. These urban agglomerations, or metropolitan centers, are expected to increase in both number and size in the coming decades, and will lZ3However, inmany smaller municipalities, the formulation of the POT constituted the first process of territorial planningandcontributedto the buildingofinstitutional capacity. 209 require special institutions and policies to effectively address common problems o f housing, basic services, landuse, solid waste, andmanagement o fnaturalrisks such as flooding. 9.24 Environmental risks caused bv informal housing. Almost by definition, informal housing faces more environmental risks thanother types o fhousing, rangingfrom the macro to the micro level: 0 Informal settlements are located in areas considered unsuitable for housing structures within official planning documents. Such zones often include environmentally sensitive areas like riverbanks, mountain slopes, or wetlands. Environmentally sensitive areas are more likely to be invaded than other types o f land, because their value for other uses may be lower, and consequently property rights may be less clear or less strictly enforced. The environmental impacts o f informal settlements arise, as follows: (a) settlements located in sensitive areas, such as wetlands, may severely affect the environment (for example, water resources); and (b) riverbanks or mountain slopes are more prone to flooding or landslides, making informal areas overall more prone to natural disasters. 0 At the neighborhoodlevel, Colombianlaw andregulationprevent the government fromproviding even the most basic o f services to areas where settlements are not legally permitted. As a consequence, basic services, such as water and sanitationprovision, are often lacking ininformal areas. 0 Since even minimumnorms are not followed inthe construction o f dwelling units located inthese informal settlements, these structures are poorly constructed. For example, these units have inadequate ventilation, which results in indoor air pollution from the use o f solid fuels for cooking, andinadequate access to a safe water supply. 9.25 Informal housing is a product o f costly regulations, inadequate planning, and a lack o f enforcement o f existing regulations and plans, Costly regulations (such as lengthy and costly administrative processes for land titling, land subdivision, building permits, construction norms and standards, and zoning regulations included in the POTs) create disincentives to suppliershuilders o f formal housing units. As a result, formal construction becomes unaffordable to low-income groups. A lack o f enforcement results in the construction o f units in areas prone to natural disasters, or in areas where basic services are unavailable or very costly to provide (for example, water supply inmountainous areas). Lack o f enforcement o f buildingpermits i s o fparticular concern inColombia due to seismic risks. It is often the case that permits are granted for a certain number of floors in a building, while actual construction exceeds the number allowed by the permit, making those areas at risk o f earthquakes or landslides more vulnerable. 9.26 Housing Subsidies. In the early 1990s, Colombia adopted a system o f housing subsidies, similar to the Chilean model, called Vivienda de Inter& Social (VIS). While this change represented an improvement over its previous subsidy system interms o f targeting lower-income groups, the new system was not flawless (Bloomberg 2001; CONPES 3178 o f 2002). Infact, the public housing subsidy programs often encouraged the development o f environmentally unsoundhousing. More specifically: 0 The bulk of the subsidies (90 percent) went to new construction. Moreover, they went to individual housing, rather than multifamilyunits. This constituted a disincentive to rehabilitate or conduct maintenance o f old units in the city centers, encouraging urban sprawl with the related increases incongestion andpollution. 0 VIS subsidies were made available only for households that possesseda legal title andwanted to build in zones classified as urbanby the POTs. Thus, no subsidy was available for the informal sector. But, given the aforementioned characteristics o f the POTs, this meant inpractice that the 210 poorest households were largely not covered by the system, which could have helped improve hazardous conditions ininformal areas. 0 A significant proportion o f units financed under the VIS scheme ended up without basic sanitation services or access to adequateroads. Moreover, a highproportion ofthe VIS units were left vacant after completion because o f lack o f essential public services (CONPES 3178 of 2002). Often, there was no consistency between the initially approved plans o f the dwellings and the units that were finally delivered. Responsesof the Government of Colombia 9.27 Sectoral Prowams. Facedwith the aforementioned challenges, the Government o f Colombia has introduced over the years a number o f sectoral programs aimed at, among other things, improving environmental outcomes inurbanareas. Examples include: 0 Integrated System for Mass Transportation (Sistema Integrado de Transporte Masivo, SITM) programs. The massive public transport programs, particularly in BogotL, have succeeded in reducing air pollution due to transport emissions. The Bogoti program has been also accompaniedby unprecedented efforts to create andrehabilitatepublic spaces and parks. 0 Upgrading of and massive titling programs for informal settlements, such as the Mejoramiento Integral de Barrios programs, have been directed at improving living conditions in informal settlements through the provision o fbasic services. 0 Incentives for the re-densification o f old centers. To stimulate the renovation process, the government passed a tax exemption for urban renovation projects (Law 788 o f 2003, regulated through Decree 2755 o f2004). It is too soon to assess the full impact o f this intervention. 9.28 Inparallel, some large cities have managed to achieve a certain degree of coordination of their actions in terms o f urban planning. Medellin has made progress with respect to consolidating its metropolitan area through development planning and infrastructure building. Bogot4 has sought to address its problems through an ad hoc mechanism, the metropolitan region, which is essentially an informal planning arrangement. Through this process, Bogoti andthe neighboringmunicipalities seek to harmonize their respective POTSandto work together to findjoint solutions to their urbanneeds (Persaud and others 2003). 9.29 The New Urban Development Strategy. Last, a new urban development strategy has been developed andpresentedinCONPES document #3305, issued inAugust 2004. The new strategy recognizes the needto improve living conditions inthe informalneighborhoods, andfor the densificationo f cities. The mainelements o fthe strategy, which are detailed inthe CONPES document, are the following: 0 Promotion o fthe renovation and re-densification o f existing neighborhoods. 0 Improved conditions in substandard neighborhoods (continuation o f Mejoramiento Integral de Barrios accompanied by massive titling programs). 0 Promotion o fmechanisms that bothimprove public spaces andmake them more sustainable. 0 Improved mobility within cities, by implementing SITM projects and linking them with other modes o f transport. 0 Prevention and mitigationo f environmental risks (incorporation o f evaluation andrisk mitigation inplanninginstruments). 0 Improvedquality o f urbanexpansion through institutional, legal, and regulatory adjustments. 211 9.30 To optimize the urban development policy, the new strategy contemplates both institutional and regulatory measures aimed at adapting and developing relevant legislation, strengthening urban planning processes, and defining a proper scheme o f interactionbetween the central andlocal governments. 9.31 Specific regulatory measures include: 0 Linkingurbanandenvirwmental legislationonpriority environmentalareas such as sanitation. 0 The adaptation and regulation o f Law 388 of 1997, in order to facilitate the application o f financing, planning, andmanagement instruments o furbandevelopment. 0 The adoption o f minimum national standards for the development o f housing, equipment, and public space. 9.32 Measures related to the strengthening o f environmental institutions include: 0 Devisingsuitable links among POTs, Development Plans, andannual municipalbudgets. 0 The development o f intermunicipal coordination mechanisms for the provisiono f public services andequipment, or, alternatively, the integration of municipalities to reinforce planningcapacities at the local level. 0 Devising mechanisms to ensure that local governments adopt environmental and urban parameters that maximize the impact o f investments made, at the local level, by the national government. 0 Strengthening Autonomous Regional Corporation (Corporacidn Autdnoma Regional, CAR) support o furban management. Challenges to Implementation of the New Urban Strategv and Recommendations for Alternative Interventions 9.33 Implementation o f the new urban strategy will face a number o f challenges. An action plan that distinguishes short- andmedium-term actions to implement the strategy is yet to be developed. The many objectives o f the strategy are not ranked in any order of priority for implementation. The following assessment o fthe new strategy identifies missing areas andareas inwhich further work is required. 9.34 Some important environmental aspects mightbe incorporatedinto the strategy, including the ones listed below: The prevention o f informal housing. While the strategy includes a section on upgrading o f informal housing and mentions interventions to deal with existing settlements, such as the Mejoramiento Integral de Barrios Program (one component o f which addresses resettlement o f households located in zones o f natural risks), the aspect o f prevention is not treated. International experience suggests that without the adoption and implementation of a policy aimed at facilitating the supply o f accessible serviced land for the poor, informal housingwill continue to grow. 0 Incorporatingenvironmental concerns into long-term planning, particularly by: o Adequately articulating environmentalconsiderations within the POTs; o Improving enforcement of environment-related features o f existing POTs (such as construction inrisky or environmentally sensible areas). 0 Establishingmechanisms for identifyingpriorities for urbandevelopment at the local level. 0 The need for an environmental monitoringsystem for municipal governments. 9.35 Some topics, although mentioned in the objectives o f the strategy, would require specific action plans.These include: 212 0 Review o f the compatibility o f environmental and urban laws and regulations. Such a review might include an overview of the main issues to be addressed, perhaps starting from a sectoral perspective (water, sanitation, garbage collection, planning, construction, energy, andso forth). 0 Adequate institutional structures to manage and coordinate urbanplanning and development at a supra-municipal level. The need for an adequate level o f coordination might be mentioned inthe strategy, as well as the concrete institutional setting requiredto make such coordinationpossible. The definition o f priorities in the programs o f technical assistance to cities, in particular concerning the drafting andrevision o f the POT. It is apparent from the above that inparallel with densification, modifications o f the POT might take future urban land needs into account. Furthermore, o f particular relevance to the environment, the strategy mentions that the Ministry o f Environment, Housing and Regional Development (Ministerio de Ambiente, Vivienda y Desarrollo Territorial, MAVDT) will provide technical assistance and capacity building to municipalities so that they can incorporate environmental considerations into their planning documents, but does not make clear how this would be done. Conclusions andRecommendations-Housing andUrbanDevelopment 9.36 Inconclusion, many challenges inthe domain ofurban development andenvironment lie ahead. A sustainable strategy might propose actions to prevent the development of construction in zones that present high natural risks, such as flooding and landslides, and seismic risks. This approach implies the prevention o f the development o f informal housing in high-risk areas. Thus, a strategy that solely addressesformal housing is only an initial step. To ensure sustainability, it is necessaryto directly address the causes o f the development o fthe informal sector. 9.37 The following paragraphs provide recommendations. The three main areas covered are: (a) the institutional, legal, and regulatory framework o f urban planning; (b) informal housing; (c) housing subsidyprograms. Institutional, Legal, and Regulatory Frameworkfor Urban Planning 9.38 Imuroving the Oualitv o f POTs. Many externalities arising from environmental degradation are relatively localized and could thus be addressed through the POTs at the local level, particularly if accompanied by appropriate national policies. Experience shows that the capacity for formulation and implementation o f such plans, and a mechanismfor reflecting global externalities, mightbe strengthened (Lavadenz and others 2003). 9.39 Establishment o f such a mechanism and provision o f assistance to the local governments in the formulation o f the POT would be advisable. It would also be advisable that the government elaborate a definition o f priorities that will be addressed in technical assistance programs to cities, for drafting and revisingPOTs, based on the capacities o f the municipalities. 9.40 A legal and regulatory framework mightbe developed to ensure the compatibility among POTs, Development Plans, and assignment o f annual budgetary resources at the municipal level. The POTs could be articulated with the municipal Development Plans, which establish local policy guidelines for the duration o f a mayor's term o f office. These two instruments-the POTs and the municipal Development Plans-might be the basis for the formulation o f annual budgets. Oversight mechanisms couldbe considered to ensure that such compatibility is respected. 9.41 Coordinating. Planning and Urban Management Instruments at the Local Level. Some externalities cannot be addressed at the municipal level. Inparticular, achieving compatibilities between 213 POTS and effective management o f neighborhood externalities between municipalities require coordination at the supra-municipal level. For example, taking flooding risk into account inthe design o f localplanning/zoning documents shouldbe carried out at the water basin level. 0 Achievement o f efficient coordination on the ground may require adjustment o f institutional settings such as establishment o f metropolitan areas. Alternatively, formalizing modes o f horizontal cooperation among cities might be considered, based on successful experiences in Colombian cities. 0 Coordination o f urban development at the agglomeration level may also require the creation o f regional entities for the management of "integral urban operations." in charge o f coordinating interventions invarious sectors. 0 To ensure that environmental issues, the scope of which is broader than the municipal or agglomeration level (for example, flooding risks), are correctly taken into account in planning documents, functions o f support to andmonitoring o f urban development from the environmental point o f view might be created and entrusted to the appropriate governmental organization. One option is to reinforce the urban environmental management responsibilities o f CARS and municipalities. 9.42 Articulating Environmental and Urban Legislation. This task should start with a review o f the legal and regulatory apparatus, perhaps starting from a sectoral perspective (water, sanitation, garbage collection, planning, construction, energy, and so forth). Concrete ways o f integrating the environment into urbanplanning andmanagement tools would then have to be devised. Prevention of Informal Housing 9.43 As argued, prevention o f informalhousing is as important as upgrading programsfor the existing informal settlements, andconstitutes an essential element o f a sustainable, long-term urbanstrategy. 9.44 Lowering the Cost o f Formal Housing. At the government level, recommended actions would include implementation o f studies aimed at improving the understanding o f how and why informal settlements are formed, and identifying ways to discourage informal developments by addressing the structural land supply problems andthus loweringthe costs o f formality. Other suggested actions include: 0 Reviewing the landtitling system inurbanareas, in order to achieve lower costs (administrative, financial, andtime); 0 Reviewing the land planning, zoning, and building regulations in order to promote participation of private developers and low-income households (for example, provisions to minimum lot size); 0 Creating incentives for informalproducers to gradually turnto the formal sector. 9.45 Moving toward better enforcement of planning rules and control o f informal developments. On the ground, consideration might be given to better enforcement o f urban planning documents, and concrete actions "upward" inthe urban development process that allow better control o f the development o f informal housing. 214 0 Upstream enforcement o f existing regulations and planning documents might inparticular focus on rigidcontrolmeasuresto preventoccupation o fhazardous sites.'24 0 Design forward-looking urban planning instruments, including the possibility o f channeling informal development by identifyingandopening orderly settlements on environmentally suitable sites, minimally serviced, on which households can buildfollowing a plan includingfuture space for utilities andservices-the settlements are regularizedlater. Housing Subsidies 9.46 While it is too early to evaluate the performance o fthe new system o f VIS subsidies with respect to environmental impacts, some recommendations can be made in order to optimize the system. In addition, alternative subsidy approaches couldbe introduced inparallel with the VIS system. 9.47 The new system should be evaluated very early, in order to ensure that the new provisions of Decree 975 o f 2004 andrelated regulations relative to the compliance with minimalhabitability standards are followed. Appropriate monitoring o f the approved VIS projects should aim at ensuring that cases o f housingunits delivered without basic services disappear, or at least become less frequent. 9.48 Itis important to define environmentalcriteria that shouldbe included inthe eligibility criteria of VIS projects in order to: (a) minimize natural risks (floods, landslides, seismic risks); (b) ensure minimal ventilation and indoor air quality (for example, type o f fuel); and(c) require basic sanitation. 9.49 Capacity building for municipalities that do not possess specialized units, or creation o f specialized units at a departmental level that will be in charge o f assisting municipalities in the control and enforcement o f zoning and buildingregulations, could be envisioned and financed through increases in collection rates of local taxes (in particular, the ImpuestoPredial). Inparallel, a system of financial incentives for local governments could be incorporated into the system o f subregional distribution o f subsidies inorder to ensurethat local governments properly enforce those regulation^."^ 9.50 Alternative Subsidies. As mentioned, the VIS scheme contains implicit incentives to buildfar from city centers where land is cheapest, potentially causing spatial mismatch, congestion, and air pollution. In addition, the mix between new construction and improvement o f existing dwellings is biased toward the former type. Eligibility criteria should be revised in order to broaden the scope o f the VIS to encompass rehabilitation, incentives to occupy "void" pockets o f land within existing urban perimeters (for example, old industrialzones),126andmultifamilyhousing. 9.51 Past experience in Colombia has shown that the VIS subsidies are heavily dependent on foreign (multilateral) funds, which raises an obvious issue o f long-term sustainability. Unsecured funding for the future might implymuch lower subsidies to new construction. It is thus important to consider a shift from subsidies to new construction, to subsidies to amelioratiodupgrading, with an emphasis on basic services and even infrastructure. These could include subsidies directed to improvement o f particular services in the dwellings (sanitation, ventilation, fuel type, andso forth). A part o fthe budgetary cost o f the subsidies could pass on to municipalities. Incentives could include formally stated "matching subsidies," by which lZ4Internationalexperience shows that the costs of preventinginformal development upstreaminterms of servicing andbringing utilities are far lower than the cost of dealingwith themafter constructionis completed. Moreover, the two cases translate into a different balance between private and public costs. Upstreamenforcement ensures that a larger burden of the costs is borne by the private sector. Ex post regularizationusually puts the financial burden entirelyonthe public sector. lZ5The regionalanddepartmentalrepartition, which is basedontransparent criteria, shouldnot be changed. A seriousobstacleto this strategy is the highpriceoflandincentralzones ofurbanagglomerations. 215 every time a collectivity mobilizes $X, the State contributes $Y.127Accordingly, the proportion o f state subsidies could vary following the type o f subsidy considered.12' From the political point o f view, matching subsidies o f this type might create better incentives than larger, one-shot, upfront subsidies, for both municipalities andhouseholds. ' WasteManagement 9.52 This section examines the design and implementation o f waste management activities in Colombia. Whereas a number o f major studies have been conducted in recent years on this topic (for example, Salamanca [2004] and Shchez-Triana and Oppaluch [1996]), the purpose o f this chapter is to summarize key points relevant to new andunresolved policy issues. 9.53 Waste i s broadly defined as unwanted material left over from manufacturing processes or refuse from places o f human or animal habitation. Within that category are many types o f waste, including municipal solid waste, hazardous waste, and radioactive waste, which have properties that may make them dangerous or capable o f having a harmfuleffect on humanhealth and the environment. Wastes and contaminated lands are particularly important in terms o f environmental health because exposure to harmfulmaterialcontainedinthemmay result inadversehealthoutcomes. 9.54 Historically, the development and implementation o f waste management programs has been a relatively low priority in Colombia. Over the last decade, however, a number of large cities have moved from a situation where it was not uncommon to find wastes on streets, sidewalks, waterways, parks, empty lots, andinthe sewage system, to the development o f formal waste collection systems. At the same time, disposal in open pits is still common in many municipalities, particularly smaller ones. Birds, insects and domestic animals can readily spread vector-borne diseases from such sites, especially through "recycling workers" who live and/or work near disposal sites. Open burningo fwaste is also common. 9.55 While an estimated two-thirds o f waste generated is disposed o f in sanitary landfills, mostly in densely populated urban areas, over half the municipalities in Colombia-typically representing the lower-income areas o f the country-do not have appropriate disposal facilities. Even where landfills are inuse, disposal is largely unregulated andthere are no standards for landfill development andoperation. Inalmost alldisposal sites includingthose inBogotb andMedellin, there is often inadequate management of leachate discharges containing highconcentrations o f toxic andother hazardous substances. 9.56 The 2002 Integrated Waste Management Guidelines come closest to a comprehensive national waste disposal policy. However, these guidelines lack the necessary legal authority to make compliance with them mandatory for all municipalities. Despite some efforts to adhere to the 2002 IntegratedWaste Management Guidelines-for example, all municipalities are required to submit formal waste management plans by September 2005-overall management o f such efforts has been a major challenge, especially in the absence o f well-defined monitoring mechanisms and clear management accountability (MAVDT 2005). 9.57 Colombia is party to the Base1Convention o f 1989 on the controlo f trysboundary movements o f hazardous wastes, which established the right o f every partyto prohibit the importation and exportation o f hazardous wastes. Under the Convention, parties must also agree that the illegal traffic of hazardous 127This could bejustified by the need for the State to contribute to welfare increases inregions facing particular types of problems linkedwith housing conditions (for example, subsidies for toilets or sanitation to priority areas where lack of sanitation causes healthproblems). 12'For example, I-to-1 matching subsidies for landtitling the first year, accompaniedby a change inthe law; then the following year 2-to-1 subsidies for sanitation inpriority areas, and so forth. 216 wastes is a crime. The regulations governing hazardous and medical wastes, however, are not widely enforced outside o f Bogoti and Cali. In practice, hazardous and nonhazardous wastes are often mixed together and treated as municipalwastes, thus creating potentially serious consequencesfor public health andthe environment. 9.58 Although growing in popularity on an international basis, economic incentive measures such as charge systems for waste disposal or deposit-refund schemes for glass bottles or other materials are not widely used in Colombia. As discussed in this report, the current approach to waste management is most aptly described as a "patchwork quilt" o f policies and practices-almost exclusively o f the command-and- control variety-rather than as an integratedmanagementsystem. Backgroundand BriefHistory 9.59 This section provides a brief history and essential background of the solid waste management system in Colombia. The legislative background prior to 1991and more recent legislation are discussed. Also discussed are selected national policies that govern waste management, waste management goals as established inthe NationalDevelopment Plan 2002-2006, andbasic budget information. LegislativeBackgrounaLBefore 1991 9.60 Pre-1991 Activities. The National Code on Natural Renewable Resources and Environmental Protection, Decree 2811-1974, was issued in 1974, based on Law 23-1973. The Sanitary Code (Law 09 o f 1979) was enacted in 1979. The authorities responsible for regulation and implementation o f the relevant environmental policies, however, were not organized in a single agency. Instead, they were dispersed among several national entities, including the Maritime General Directorate (DIMAR), the Health andMiningMinistries, andvarious local agencies-CARS and health authorities. Ingeneral, these entities have been poorly coordinated andhave failed to establish clear andconsistent standards for waste management. 9.61 Post-1991 Activities. In 1991, with the introduction o f the new Constitution, the State was assigned responsibility for advancing individual rights to enjoy a healthy environment and to participate in critical decisions as part o f a larger set of rights that the Constitution labeled "Collective and Environmental Rights." These rights might limit the exercise o f certain other rights, such as those associated with the ownership o fprivate property. 9.62 Among the Constitutionalprovisions most relevant to waste management are those that assign the Colombian State the following responsibilities: 0 Preventingand controlling environmental deteriorationfactors; 0 Imposing legalsanctions andrequiringreparationwhen damage is caused. 9.63 At the same time, the Constitution assigned municipalities the duty o f regulating the use of the soil and managing and maintaining the country's ecological patrimony. These responsibilities clearly carry major implications for economic development, especially for industrial and energy-intensive activities. 9.64 In December 1993, Congress approved Law 99, which created the MAVDT, the National Environmental System (Sistema Nacional Ambiental, SINA), and CARS in regions o f the country where they did not exist. The law also established Urban Environmental Authorities (Autoridades Ambientales Urbanas, AAUs) in cities with more than 1 million inhabitants, five institutes o f environmental research, and a Special Unit for the administration of the National Natural Parks System. The overall goal of these 217 reforms was to establish a strong, coherent, internationally visible, environmental management system that also would be decentralized, democratic, participatory, fiscally solvent, andsocially legitimate. SelectedNational Policiesfor Solid WasteDisposal 9.65 Decree 605-1996, based on Law 142-1994, lays out the basic procedures for solid waste management in Colombia, including collection, storage, transport, and final disposal. Unlike waste management regulations in other countries, Decree 605-1996 is not supported by a broad set o f agency- issued regulations, standards, and policies, all backedby federal and state enforcement procedures. Thus, Decree 605 is more o f a grand design than a specific implementing regulation for the management o f solid wastes. 9.66 Law 430-1998 prohibits the introduction o f hazardous wastes into the national territories under the terms o f the Basel Convention. It also governs the management o f hazardous wastes generated within the country, including the equipment requiredby customs authorities to detect the presence o fwastes. The overall goals o f Law 430 are to minimize the production o f hazardous wastes, prevent their arrival inthe country, upgrade obsolete industries that might produce them, and advance policies for clean production processes. Law 430 establishes the duty o f the waste generator to determine the physical-chemical properties o f the wastes at properly authorized laboratories. Special provisions also cover wastes from hospitals, clinics, medicalcenters, andlaboratories that analyze or researchpathogenic fa~t0rs.l~' 9.67 Decree I443 of2004. The Ministries o f Environmental and Social Protection issued Decree 1443 o f May 7, 2004, which partially amended Law 2811 o f 1974, Law 253 o f 1996, and Law 430 o f 1998 with relation to the prevention and control o f environmental contamination in the management of pesticides andhazardous waste or residue coming from them. 9.68 Article 7 o f the Decree places the responsibility for the generation and handling o f hazardous wastes originating from pesticides on the generator o f the waste (manufacturer, importer, or person in possession o f the wastes). The responsibility remains untilthe waste has beenusedas an input or has been disposed o f ina definitive manner. 9.69 Basel Convention. This Convention became effective in Colombia on March 31, 1997, and establishes the obligations to reduce cross-border movements o f wastes subject to the Convention, and to improve the technical capacity o f the countries inthe management o f the wastes. According to Article 81 of the Constitution, Colombia is not authorized to accept toxic wastes into its national territory. 9.70 Stockholm Convention on Persistent Organic Pollutants. The Stockholm Convention, which became effective on May 23, 2004, i s a global treaty to protect human health and the environment from persistent organic pollutants (POPS), which are chemicals that remain intact inthe environment for long periods, becoming widely distributed geographically, accumulate in the fatty tissue o f living organisms, and are toxic to humans andwildlife. Examples o f POPs include pesticides (including Aldrin, Clordane, Dieldrin, Endrin, Heptaclor, Mirex, Toxaphene, and DDT) and other chemical products (polychlorinated biphenyls, hydrochlorobenzene) or combustion by-products (dioxins and furans).130 The MAVDT is 129 The Ministry o f Health issued Decree 1669-2002, which regulates medical and related wastes (Gestidn Integral de Residuos Hospitalarios y Similares, GIRHYS). It establishes standards concerning pharmaceutical laboratories, defines a number of key terms in the field, establishes new responsibilities for Health and Environmental Authorities, and determines that waste incineration should be done after its deactivation at incineration plants or cement factories where an environmental license has been granted for this particular use. 30http://www.pops.int/ 218 responsible for the implementation o f the Stockholm Convention, but as o f June 2005 it had not developedthe capacity to design policy or programs to control these wastes. Integrated Waste ManagementGuidelines 9.71 In2002, the Ministries ofEnvironment andEconomic Developmentdeveloped guidelines for the Integrated Management o f Wastes within the framework of the Quality o f Urban Life Program. The program aimed at increasing the efficiency o f production processes and regulating landfills for the appropriate disposal o fwastes. Near-tern objectives include: 0 Minimizing waste production by helping to establish a cultural norm to reduce waste generation andencourage waste separation at the source, andby establishing clean-productionprograms. 0 Increasing the economic value o f waste such as organic and recyclable materials. Specific goals for recycling or reuse o f these materials have been established, with an interim target set at 30 percent o f waste volumes generated. The overall objective o f the guidelines is to "provide the tools that allow the EnvironmentalAuthorities to support UrbanandRegional areas for integrated management o f solid wastes, based on national policies established by the Ministry o f Environment" (MMA 2002). 9.72 Although the guidelines were disseminated to all municipalities, they are not backed by any legal authority. Nonetheless, they contain detailed technical data on the Integrated Solid Waste Management Program andprovide awealth o f informationonthe proceduresthat territorial entities shouldfollow inorder to buildand operate a sanitary landfill. Given the comprehensive nature o f the guidelines, there have been calls for transformingthem into a mandatory rule on landfillmanagement. 9.73 Mainelements o fthe guidelines include: 0 The definition o f wastes andlandfills. 0 Information on how financial institutions should characterize investment in waste management projects, and specific recommendations on the formulation o f the project, selection o f alternatives, identification o f environmental impacts, actions to mitigate environmental impacts, andindicators for project management. 0 Environmental guide for sanitary landfills. The guide describes the concept andphysicalstructure o f a landfill, andlists the biologicalandchemical reactions that take place when treating waste. In addition, it provides guidelines on siting o f landfills in accordance with the Territorial Management Plan, and defines the characteristics o f environmental studies required for the environmental valuation o f the project. 0 Technological options and design criteria according to landfill type andthe level o f complexity o f the system. 0 With respect to construction and operation, the guide provides suggestions on supporting infrastructure andon the management oflandfill cells. 0 Instructions for controlof gases andleachates, by-products o f waste decomposition inlandfills. 0 Instructions on procedures to discontinue use o f landfills. 219 CleanProductionAgreements 9.74 Additional instruments for environmental management involve agreements with industry or other relevant organizations. In 1997 the National Environmental Council approved the "National Clean Production Policy." This consensus-basedpolicy has a number o fbroad objectives: 0 Optimizing the use o f natural resources and raw material 0 Increasingthe environmental efficiency andquality o f energy resources 0 Preventing andminimizingthe productiono fpollutingagents 0 Preventing, mitigating, correcting, andcompensating the negative environmental impacts on local populations andsensitive ecosystems , 0 Adopting clean and practical technologies to continuously improve environmental management 0 Minimizing production o fwaste andusingalready producedwastes as a source o fraw material. Beginningin 1995, agreementsfor cleaner production have been signed with a numberofkey sectors. NationalDevelopmentPlan2002-2006 9.75 The NationalDevelopment Planfor 2002-2006 includes the following waste disposal objectives: 0 Developing a regulation for management o f solidwastes, which should include: o Clear definition o fcovered waste streams, generators, and so forth o Provisions for storage o Provisions for biosolids o Provisions for profitable useheuse of certain materials. 0 Evaluating the impact, on waste disposal, o f the signed agreements for cleaner production, in order to establish a strategy for their reformulation and implementation and a control and surveillance system. 0 Enforcing the strategy to extend the Clean Production Policy to the regions and to establish at least three regional hubs. 0 Promoting a specialized credit line to enable small and medium enterprises to adopt newer and cleaner technologies and reconvert their production systems. Once this credit line i s established, $2.5millionwill be devotedto implementation. 0 Evaluating the effectiveness o f potential exemptions to the VAT and formulating mechanisms to support adoption o fcleaner technologies. 0 Developing the required measures to prevent and control contamination caused by wastes or dangerous residues. 0 Formulating a national plan to implement the Stockholm Convention on persistent organic pollutants, andsupporting the management o fpriority chemical substances. 0 Conducting a strategic environmental evaluation o f ports, roads, trains, mining, hydrocarbon sectors, andfour strategic subsectors relatedto industrial fanningprocesses. 0 Formulating a plan under CONPES on Integrated Management o f Solid Wastes and completing the municipal database for the SolidWaste InformationSystem. 220 e Supporting Territorial Entities in the development of Municipal Integrated Solid Waste ManagementPlans (PGIRs) accordingto Decree 1713-2002. e Promotingthe implementation of recycling programs in 10 large, medium, and small cities, with the cooperation of CARSandthe Territorial Entities. 9.76 The overall budget planned for the MAVDT in 2005 is COP$160,738,150 (US$63,835).I3' Approximately 60 percent of this budget, that is, COP$98,039,300 (US$38,935), is devoted to basic sanitation. It seems that the bulk of these funds will be devoted to wastewater and solid waste management. Integrated Plansfor Solid Waste Management 9.77 By passage of Resolution 1045 of the MAVDT on September 26, 2003, the MAVDT established the obligation of all municipalities in the country to each have an Integrated Plan for Solid Waste Management (PGIR), an initial diagnostic, future projections, and a viable financing plan to allow continuous improvement of the service provided, including an evaluation of the results (MAVDT 2003). Resolution 1045 established a methodology for formulating PGIRs, the structure of which must include objectives and specific goals for solid waste management defined through programs, taking into account demographic projections for each municipality inthe country, waste generation, urbanarea expansion, and soil uses, The deadlinefor submissions ofthe PGIRsto the MAVDT was September2005 (MAVDT 2004). Effectiveness of the Waste Management System 9.78 This section reviews available information on the performance of Colombia's waste management system from the following perspectives: information on the generation of solid waste throughout the country, the management of solid waste, available data on hazardous and medical wastes, the limited evaluative information on the Clean Production Agreements, and selected additional topics on waste management. Generation of Solid Waste 9.79 The Institute of Hydrology, Meteorology and Environmental Studies (Instituto de Hidrologia, Meteorologia y Estudios Ambientales, IDEAM) has developed various indicators to track progress on environmental programs. IDEAM estimates that the total volume of solid waste generated by urban (including domestic, commercial, and institutional sources), industrial (manufacturing and extraction), and rural (agriculture and cattle rearing) sources was over 8 million tons inyear 2001, or about 0.71 kilograms perpersonperday.132 Table 9.1: Total and Per Capita Waste Generated(1998-2001) Year Tonbear Ton/day Kg/person/day 1998 7,263,420 19,900 0.69 1999 7,844,203 21,491 0.73 2000 7,868,172 21,557 0.72 2001 8,015,854 21,961 0.71 Source: Office ofthe SuperintendentofDomestic Public Services. 13'TRh4: $2,518 = 1US%. 13'Officeofthe SuperintendentofPublicServices, the MAVDT, andDANE. 221 9.80 Table 9.1 shows the increasing volume o f waste generated during 1998-2001. Over this three- year period, total waste increased from 7.26 million tons to 8.02 million tons, equivalent to an average increase of about 3.3 percent per year. Growth o f per capita waste generation was considerably slower andaveraged lessthan 1percentperyear. 9.81 Because they are centers for employment and trade, the urban centers attract large numbers o f migrants seeking both economic opportunities and greater personal security. Large cities also typically have high concentrations o f populations with above-average income levels. As shown in Table 9.2, affluence is generally associated with greater amounts o f waste generated per capita. Per capita solid waste generation remains below 1kilogram per day in Colombian cities with populations over 100,000. This figure is low compared with other large Latin American cities, where per capita waste production is 50 to 100percent higher (Figure 9.2). Table 9.2: PopulationDensityandWaste Generation inColombia(1988-2001) Wasteproduction (kg/inhabitant/day) Population I998 1999 2000 2001 More than 1million 0.82 0.82 0.82 0.81 500,000-1 million 0.73 0.84 0.73 0.65 100,000-500,000 0.66 0.70 0.66 0.67 50,000-100,000 0.59 0.68 0.59 0.66 30,000-50,000 0.69 0.70 0.69 0.62 10,000-30,000 0.68 0.68 0.68 0.71 Less than 10,000 0.62 0.61 0.62 0.68 Source: Office ofthe Superintendentof DomesticPublicServices. Figure9.2: SolidWaste Generationin Latin American Cities I . SolidWaste Generation(kg/inhabitant/day) 1.6 1.4 1.2 1 0.8 0.6 I 0.4 0.2n Sources: S b Paulo: SVMA and IPT (2004); Buenos Aires: M A E and UNEP (2003); Santiago: IEUand UNEP (2003); MexicoCity: INEGI(2005); Lima: LJNEP andCONAM (2001). 222 9.82 A recent study identified the composition o f solid waste from a cross-section of municipalities across Colombia (Salamanca 2004). Because the sample examinedincludes some o f the largest cities in the country, the results may not be completely representative o f small municipalities. Nevertheless, they provide some indication o fthe composition o f solidwaste inthe country. Figure9.3: CompositionofWaste Figure9.3: Compositionof Waste Others Organic Material 9.83 As is the case in most developing countries, a major portion o f Colombia's waste matter is composed o f organic material (60 percent), includingboth domestic and agricultural waste (Table 9.3 and Figure 9.3). Plastics and paper account for 13 percent and 11percent o f waste generated, respectively, while glass, metal, textiles, andleather make upthe rest. Management of Solid Waste 9.84 One way to gain insight into waste management is to examine the particular disposal method employed. Based on data collected by Salamanca (2004), Table 9.4 illustrates the volume and disposal practices for solid waste among Colombian municipalities. Although 65 percent o f solid waste generated in Colombia is disposed of in sanitary landfills, this accounts for waste from only 33 percent of the country's municipalities. These municipalities represent more densely populated urban areas and thus account for the disproportionately large share o f waste. Table 9.3: CompositionofWaste Typeof waste Percent of waste disposed Organicmaterial 60 Plastics 13 Paper andpasteboards 11 Glass 6 Metals 4 Textiles and leather ` 4 Other 2 Nationaltotal 100 223 9.85 Conversely, 28 percent of waste generated by 575 municipalities (more than 50 percent o f municipalities in Colombia) i s disposed o f in open dumpsites, with or without burningprocesses. There are 338 municipalities that dispose o f waste through burningand20 that dump waste directly into streams andrivers, at a rate of 26 tons per day. These disposalmethods do not include leachatetreatment or vector control. A recent investigation by the delegated procurador for Environmental and Agrarian Affairs found that from a sample of 194 locations for final disposal o f solid waste, 168 responded to the survey. Of those surveyed, 121 (62 percent) possessed environmental licenses, 96 (49 percent) informed the surveyors that they didnot have a defined environmental management plan, and 104 (54 percent) reported that they were situated near a body o f water. 9.86 Another way to gain insight into waste management is to examine patterns and trends in waste recycling. Table 9.5 displays the percentages of wastes in different categories that were recycled during 1998-2000. As shown, recycling rates are relatively highfor pasteboardsandpapers (42 to 50 percent) and for metals (34 to 42 percent). For glass, 16 percent was recorded as recycled. Overall, however, since metals, paper, and glass account for less than 10percent o f the total waste generated, the proportion o f total waste recycledinthe entire waste stream is substantially less-about 15 percent in 1999. At the same time, trends in recycling are quite favorable. Over the two-year period 1998-1999, total recycling rose from 915,211 tons to 1,255,763 tons, an increaseof 37 percent. Ifcorroborated by other data, these would clearly representimpressive gains. 9.87 There is also wide variation inthe coverage o f formal waste disposal programs among the different CARS. Table 9.6 displays the percentage o f municipalities inthe various CARSthat report the existence o f operating waste disposal programs. Overall, only five CARs-Carder, Coralina, Corprocaldas, Corpogravio, and CR4-report that 80 percent or more o f their municipalities have operating waste programs. The vast majority o fCARSreport that lessthanhalfo ftheir municipalities have operating waste disposal programs. Table 9.4: FinalDisposal of Wastes Number of Wastedisposed Municipalities Wastesdisposed Typeof disposal municipalities (tonslday) PA) (%) Sanitary landfills 358 14,799 33 65 Dumpsites withbuming 338 1,946 31 9 Dumpsites without burning 237 4,3 15 22 19 Interment 45 1,072 4 5 Water stream 20 66 2 0 Incineration 3 26 0 0 Others 56 185 5 1 Informationnot available 31 425 3 2 National total 1,088 22,835 100 100 Source: Salamanca(2004). Table 9.5: Solid Wastes Recycled, by Material Metal Pasteboardsandpapers Glass Year Tons % Tons % Tons % Total recycled 1998 315,310 34 449,630 50 150,271 16 915,211 1999 400,888 42 398,020 42 152,545 16 951,453 2000 1,255.763 Source: IDEAM,FirstGenerationo fIndicators ofthe Environmental InformationBaseline 2002. For 2000: Ofice ofthe Superintendent of Domestic Public Services. 224 9.88 A final source of information relating to waste management is from a series of field visits and reviews o f three-year action plans o f CARs conducted by one of the current investigators in December 2004. Although the information collected was not completely consistent across all CARs visited, summary information on the selected CARS is displayed in Table 9.7. Even though the selected municipalities have independent waste disposal programs, a look at the last column on disposal shows that only part o fthe waste generated is disposed o f appropriately. Table 9.6: Disposal of Solid Waste in CARs Municipalities Number Percent with waste CAR in jurisdiction disposalprograms CAM 37 54 CAR 104 57 CARDER 14 100 CARDIQUE 21 5 CARSUCRE 19 16 CAS ........................ 74 .. __.-___ 36 CDA 8 13 CDMB 13 62 CODECHOCO 31 .. 3 .. _I- . . . ~ CORALINA 2 100 CORANTIOQU~ 80 70 ........ CORMACARENA ... ....... 10 .......... 10 ..... .__.............. .............. .................. CORNARE 26 31 COWAMAG 30 10 ____..______-._-.-___ CORPOAMAZONIA ................................................................ 31 ......... ..........-- 26 CORPOBOYACA 87 15 CORPOCALDAS 27 93 ...................................................... CORPOCESAR 25 ............................................. 4 CORPOCHIVOR 25 16 CORPOGUAJIRA 15 13 ................................... CORPOGUAVIO 8 .. ... . 88...... ... . CORPOMOJANA 7 0 C O R P O N A ~ O 64 44 .CORPONOR , ...... ................................... . . . . 40 .................................................... 18 CORPORINOQUIA 64 16 CORPOURABA 19 11 CORTOLIMA ............ ...... ........................... 47 30 " ..___..-___~__...._.__I_. CRA 23 83 CRC 41 2 ......CRQ .............................. 12 . ..... ...___58 . . CSB 24 4 cvc 42 45 cvs 28 14 Source: ColombianAssociation of Environmental Authorities. 225 Table 9.7: Characteristics of Waste Programs in SelectedAreas Municipality Area Waste CAR jurisdiction (sq. km.) Population (tonddq) Disposal remarks Corantioquia 80 36,048 4,162,139 Halfofwaste disposedproperly Cornare 26 8,276 598,012 182 Recycled 174,444 (tons/2003) Cortolima 47 23,981 1,302,998 650 Landfills 10,080 tons Opendump 5,460 tons Valle delCauca-CVC 42 21,306,8 4,460,850 Domestic waste 2,500 Sanitarylandfills 427 tonslday SinuandSanJorge 68.7 percent ofthe Valleys-CVS 28 25,045 1,348,591 municipalitiesuse open-air dump sites Corporationof 1,496 are disposedin Atllntico-CRA 23 3,388 2,413,803 1,902 Baranquilla's sanitary landfill Bog&-UESP DC 6,635,960 29,540 DoiiaJuanaLandfill 4,842 Hazardousand MedicalWaste Management 9.89 The manufacturing sector, andparticularly the petrochemical, carbon-chemical, andthermoelectric industries, are major generators o f hazardous wastes in Colombia,. Other important sources include the mining, agricultural, and medical sectors, and some segments of the commercial sector. Vargas Bejarano (1991) andVargas Bejarano, Prieto, andCasas (1992) estimatedthat production o fhazardous wastesranged fiom 200 tons to 1,400 tons per day. Shchez-Triana and Oppaluch (1996) reportedthat efforts to manage hazardous wastes were limited to those made by Occidental in the petroleum production field o f Caiio Limbn, BASF in the manufacturing plant of Medellin, and Dow Chemical in Mamonal. Certain other private companies reportedly made limited efforts including building secure landfills for the disposal o f fiberglass and selected toxic materials. Shchez-Triana and Oppaluch (1996) also reported that only 6 percent o f public and private laboratories in Colombia had the capacity to analyze solid wastes, and that none o fthese laboratories hadequipment for analyzing or samplinghazardouswastes. 9.90 In 2002, the Food and Agriculture Organization recorded the presence of nearly 436 tons of obsolete pesticides stored in 10 Departments, and approximately 4,973 tons o f obsolete pesticides buried. Inone ofthese sites (Copey inCesarDepartment), 170tons ofobsolete pesticides were found, which the MAVDThas triedunsuccessfully to dispose o fbythermal combustion. 9.9 1 In2002 theNationalUniversityestimatedthat Colombia generates500,000 tons ofhazardouswaste per year. Since a complete inventory of hazardous wastes inColombia does not exist, this figure may be an underestimate. Furthermore, the figure o f 500,000 tons per year is much lower than the 8 million tons o f hazardous waste generatedby Mexico per year. The National University estimated that the city o f Bogotb produced 73,000 tons o f hazardous waste in 2002. By including neighboring industrial municipalities like SoachaandCota, this estimate increasesto 90,000 tons a year. The study found that the most common form o fdisposal was incineration. InBogotb, there are six incinerator kilns, eachwith a capacity o f200 kilograms per hour. Some factories specialize in treating wastes such as solvents, spent oils, and PCBs (polychlorinated biphenyls), which are often exported to other countries for disposal, 226 9.92 Several developed countries dispose o f hazardous wastes by incinerating them in kilns used in cement production. InColombia, MAVDT's efforts have been limited to initial attempts at usingcement- making kilns to incinerate fungicide containers, contaminated soils, spent oils, and tires. The ashes produced from incineration are added to the cement without affecting cement quality. Bogoti does not have the capacity to safely dispose o f the hazardous wastes it generates. Consequently, more than half o f the hazardous wastes generated are inadequately disposed o f inopen landfillsanddumps. 9.93 More recently, Bogothhas developed a master planfor integrated waste management that defines various waste streams, including hazardous waste. Based on data from 1999, the Office o f the Mayor o f Bogothreported that 41 tons o f hazardous waste were disposed o f at the Dofia Juana landfill, while 9 tons of waste were reused, presumably as fuel inan unidentified facility. 9.94 The Global Environmental Fundhas granted the MAVDT US$727,000to design and implement a projgram to manage POPS.In Cali, o f the total amount o f medical wastes and hazardous wastes generated, 1 percent is sterilized and buried in the open dump o f Navarro. The other municipalities deactivate andburnthese wastes anddispose o f their ashes indump sites or landfills. 9.95 With respect to medical wastes, Shnchez-Triana and Oppaluch (1996) reported that pathogenic waste generated at five hospitals inBogoth varied from 0.13 kilograms per bed per day to 0.18 kilograms per bed per day in 1992. A recent ,document developed by the CAR o f the Sinh and San Jorge Valleys (CVS) identifiednine issues associatedwith the management o f medical wastes (CVS 2004): Atmospheric pollution causedby open burningo f medical waste Technically inadequate incineration; the institutions lack the proper permit for atmospheric emissions for stationary sources Uncertainty about the reliability o fthe microbiological sterilization procedure Untreatedmedical waste Ignorance about waste types produced by clinic laboratories Ignorance about environmental and sanitary risks Absence o f emergency planning Contamination through mixing o f hazardous and nonhazardous wastes, and disposal o f medical wastes by burial on hospitalpremises Inappropriate disposal sites andsystems. CleanProduction agreement^'^^ Background 9.96 The strategy o f developing and promulgating regulatory standards and guidelines that are not strictly mandatory or that are voluntary has been a key focus o f both the MMA and some CARS, virtually since the passage o f Law 99 in 1993 (see Chapter 3). As an illustration, the last three Ministers o f the Environment, in particular, have emphasized the use o f voluntary regulations. Two types o f voluntary regulations are popular in Colombia. The first comes about as a result o f negotiating clean production agreements (convenios de produccibn limpia) with polluters. The agreements either target specific productive sectors (for example, transportation or agriculture) or specific regions. Typically, they involve a quid pro quo: polluters pledge to improve environmental performance over a specified period, and in exchange, the regulator declares a certain grace period during which existing command-and-control '33Muchof the information contained inthis subsection is derived frominterviews conducted by the RFF consultants inMarch 2004 (see Blackman and others [2004]). 227 standardsare not enforced. The ostensiblepurpose of suchagreementsis to mitigate the problemo f chronic noncompliance incertain sectors andcertainregions by promoting "consensus building" among polluters on the needfor compliance, andby providing polluters with guidance on how to achieve compliance. 9.97 Notwithstanding some potential benefits, documentary data suggest that clean production agreements typically have not succeeded in improving environmental performance. During the grace period specified inthe agreement-that is, the period during which polluters have committed to investing in pollution control and prevention and during which regulators have promised not to enforce regulations-polluters do not actually make any significant new investments. In any case, regulators typically have no means o f assessing environmental performance because the clean-production agreements do not include indicators or establish a baseline. Thus, the agreements end up legitimizing inaction on the part o f both polluters and regulators. This seems to have been the pattern for most national-level sectoral clean-production agreements. 9.98 Esterling (2003) evaluated a sample o f 13 voluntary clean production agreements, includingboth single-sector and multisector agreements and agreements at the national and regional levels. He found that many o f the agreements suffered from weaknesses that rendered them ineffective. For example, commitments made by the signatories to the agreements-and moreover, the consequences o f failing to keep these commitments-were typically vague and ill-defined. In `addition, the agreements did not identify sources o f financing for costly pollution abatement andprevention investments. Finally, the legal status o f the agreements was unclear. These conditions created incentives for stakeholders to sign these agreements even ifthey had no real intentional o f meeting their commitments. Other Selected Issues Related to Waste Management 9.99 Total waste generation continues to rise, although only modestly so, on a per capita basis. Most o f the waste generation growth in per capita terms appears to be occurring principally outside the large cities. Efforts to manage solid wastes have met with varying levels o f success across the country. Although they are not codified in formal regulation, guidelines for integrated waste management have been issued and significant programs exist in large cities. Insome CARs, presumably the wealthier ones, smaller municipalities also have programs in place. In other CARs, basic solid waste management programs are nonexistent in many municipalities. Even in those municipalities that have programs, little i s known about the technical and qualitative aspects o f the programs. This problem is exacerbated by the lack o f enforceable regulations for waste management. 9.100 Recycling shows some promise as an element o f a wider approach to waste management. For more valuable materials like metals and some types o fpaper, recycling rates are substantial and, based on data for 1998-1999, they appear to be growing rapidly. With respect to the management o f hazardous wastes, Colombia is a signatory to the Basel Convention. In this context, a few large firms and at least one large city (Bogoth) have developed modest programs. Lack o f a national hazardous waste program hinders compliance with the Basel Convention. Clean-production agreements are in place with many enterprises throughout the country. Little i s known, however, about the performance o f the agreements. The limited information that is available leaves doubt as to whether such agreements encourage environmental behavior beyond what might be labeled as "business as usual." 9.101 The following observations are also pertinent: 0 Salamanca (2004) highlights the absence o f regulation for the management o f solid wastes, and lack o f institutional planning and coordination among governmental entities. Illustrating these deficiencies is the fact that municipalities and governmental entities .have been unable to reach 228 decisions on siting o f landfills, despite the fact that Land Use Plans exist and have established environmental zoning rules. 0 The current regulations do not specify the appropriate type o f landfill relative to the size and characteristics o f the municipalities they serve; they do not define any technical specifications with respect to soil permeability, collection of gases, and treatment o f rainwater and leachates; and they are silent on issues relating to management and technical supervision of companies in charge o fthe operation. 0 As inmany other developing countries, the largely unregulated recycling industry-dominated by scavengers-plays an important role inwaste management in Colombia. Scavengers have worked independently inlandfillanddump sites from as early as 1986, ekingout a living from selling scrap or other waste with some resale value. In 1986, the nongovernmental organization Fundacibn Social was established andmade efforts to encourage scavengersto form cooperatives by providing legal, administrative, and business assistance. The Fundacibn Social has nearly 100 member cooperatives. In 1997, the foundation established a program that provided donations and loans, estimated at approximately US$700,000, to the cooperatives. The organizational structure for the program included national, regional, and local associations o f cooperatives. Through the program, affiliated cooperatives were allowed to sell recyclables inlarge volume to fetch higher incomes, but figures on the volumes o fwaste reusedby these cooperatives are not available. 0 Inadequate financing continues to present challenges to adequate solid waste management. Shchez-Triana and Oppaluch (1996) report that larger cities are usually able to cover costs by imposing direct charges. In small- and medium-size municipalities, however, charges are often not collected. Thus, financing o f waste management services insuch municipalities must be done through other sources such as other municipal income or the National Treasury. 0 There is a growing emphasis on economic incentive mechanisms such as targeted charge systems or deposit-refund schemes. Shchez-Triana and Oppaluch (1996) review such schemes as applied to waste management. ConclusionsandRecommendations-Waste ManagementandUrbanDevelopment 9.102 Colombia has made some advances in solid waste management, especially in urban centers. The fact that 65 percent o f waste is disposed o f in sanitary landfills is an important indication o f progress. Similarly, there appears to be some progress inthe area o f recycling. Notwithstandingthese advances, it is clear that Colombianeedsa more effective policy on waste management. The operation andmanagemento f the limitednumber o f landfills that do exist is often substandard. Clear regulations for control o f leachates, groundwater pollution, and disease vectors do not exist, nor do specific regulations for the control and regulationo f landfillgases and soil-type analyses. Inaddition, over half o f all municipalities inthe country continue to dispose o f their waste in open and uncontrolled dumpsites without any prior treatment, or directly into bodies o f water. Systems for separation and management o f hazardous and special wastes, including medical waste, are nonexistent or grossly inadequatewhere they do exist. These practices present significant health risks to the public. 9.103 The government i s aware o f many o f the problems associated with waste management, and has considered several alternatives to overcome the problems identified. The following suggested alternatives are intendedto support future reforms: 229 0 Establishment o f legally bindingstandardsfor landfills inurbanareas: The obvious startingpoint for these standardsis the 2002 integrated waste management guidelines. Lack o f a comprehensive set of standards for landfills has resulted in wide differences in operating practices for landfills across urban areas where they exist. Development o f a common standard will establish a minimum requirement that landfill operators must meet in order to mitigate risks to the environment andpublic health. 0 Development o f recommendations appropriate for smaller municipalities: Sanitary landfills are expensive to build and operate, and involve substantial investments in capital and infiastructure, which smaller municipalities may not be able to afford. Inother words, construction o f state-of-the- art landfillsinsmall municipalitiesmay not be cost-effective. Nonetheless, there remains a needfor adequatemanagemento fwaste generatedfrom small andremote municipalities. Insteado f applying standards for urban landfills to such municipalities, it is recommended that the government issue regulations which include the development of criteria and standards for waste management solutions that are appropriate for smaller municipalities. Such regulations should also include incentives for waste disposal inregional landfills. 0 Enforcement o f territorial management plans that address the siting o f landfills. The territorial management plans contain some zoning regulations regarding siting o f landfills, but they are not adequately taken into account indecisionmakingon where to put landfills. 0 Adoption o f a decentralized approach to waste disposal by designing and constructing several transfer stations scattered throughout the urbanarea so that transport costs can be reduced. 0 Better articulation o f legal requirements for hazardous waste management. Despite the existence o f regulations for hazardous waste, noncompliance continues to be a serious problem. It is recommended that the current regulations be evaluated with the goal o f simplifying definitions andrequirements, and improvingmonitoringandenforcement o fregulations, includingpenalties. 0 Better articulation o f the role o f environmental authorities in the enforcement o f waste management regulations. The inclusion o f provisions in waste management regulations that require CARs and AAUs to enforce such regulations will contribute considerably to enhancing compliance with the regulations. Implications for non-enforcement o f regulations by the AAUs and CARSmight be articulated, including provisions for ensuring accountability. In addition, such regulations might specify that MAVDT monitor the performance o f the enforcement programs conducted by the AAUs andCARs. 0 Improved monitoring o f final disposal o f medical wastes. Decree 2676-2000 regulates medical wastes and establishes stringent standards for their disposal by incineration. However, monitoring o f this program is less than optimal. It would be advisable that a special evaluation be carried out for medical wastes with the goal o f simplifying the regulations and improving monitoring and enforcement. 230 Table 9.8: Summary of Recommendationsfor AddressingProblemsAssociated with AcceleratedUrbanGrowth Priority short (S), medium (w, Recommendation andlong term (L) Stakeholders Institutional and Regulatory Frameworkfor UrbanPlanning . . ..... .... . ................................................................... ........... Definepriorities that will be addressedin technical assistance programsto cities for drafting andrevisingPOTs, basedon the M-L MAVDT capacities o f the municipalities. Establish legalandregulatory framework and oversight mechanismsto ensure compatibility among POTs, developmentplans, andannual S MAVDT, Municipalities budget proceduresat the municipal level. Use POTs (articulated with municiDal development plans) andmunicipal developmentplans as basis for elaboration of M-L Municipalities budgets. Coordinate planning andurban management functions at the local levelthrough: Adjusting institutionalsettingssuchas establishmento fmetropolitan areas M-L Municipalities Formalizing modesof horizontal cooperation amongcities M-L Municipalities Creating regional entities for management o f "integrated urbanoperations" incharge M-L MAVDT, Municipalities o f coordinating interventions invarious sectors Establishing and allocating to appropriate institutions functions o f support to and monitoring o furban development, for M-L MAVDT,Municipalities, CARS environmental issues the scope o fwhich is broader than the rnunicipallagglomeration level. Articulate environmental andurbanlegislation through: 0 Review o f legal andregulatory framework, S-M MAVDT starting from sectorperspective 0 Integrating environment into urban __......planning. _ S-M MAVDT, CARS,AAUs .. . Prevention of Informal Housing Conduct studies to improve understanding o f how andwhy informal settlements are formed. S MAVDT, AAUs, CARS Address structural landsupplyproblems and thus lower costs of formalization. S MAVDT 231 Housing Subsidies ...___.. . . . . . ........ .. . . . ............................... .. .. . . ..... ....._ Evaluate the actual VIS to ensure its compliance with habitability standards per S MAVDT provisions o f Decree 975. Define and include environmental criteria that minimize naturalrisks andensure ventilation and indoor air quality inthe eligibility criteria S MAVDT o fVIS projects. Alternative subsidies: Revise eligibility criteria o fVIS scheme in S order to broaden the scope o f the VIS and encompass rehabilitationincentives to locate in"void" pockets o f landwithin existing urban perimeters (e.g., old MAVDT industrial zones), and multifamily housing. Shift from subsidies to new construction, to subsidies to amelioratiodupgrading, with emphasis on basic services and s .. infrastructure.... ... ....... . . ... ... ... . . ............ Waste Management .............. ...........-. ..... ...... ..... ......_.. ... ..... ~~~ Establish legally bindingtechnical standards for landfills inurban areas. S MAVDT. CARs Develop criteria and standards for waste management solutions, including incentives for M MAVDT waste disposal inregional landfills. Enforce LandUse Plans (POTs) so that decisions on siting o f landfillsare consistent S MAVDT, CARs with zoning regulations contained inPOTs. Waste management regulations: Better articulate the role o f environmental authorities inenforcement o f waste management regulations. Include provisions inwaste management regulations that require that CARs and S-M Congress, MAVDT, Comisidn de AAUs enforce such regulations. Regulacidn de Agua Include regulations that specify that the MAVDTmonitor the performanceo f enforcement programs conducted by the AAUs andCARs. Conduct evaluation o f final disposal o fmedical wastes with the goal o f simplifying regulations for medical waste disposal and improving S-M MAVDT monitoring and enforcement. 232 CHAPTER 10 LIVINGWITH NATURAL DISASTERS In Colombia, natural disasters constitutea threat to the livelihood and very existence of a signifcant percentage of the population. Natural disasters, mainly floods and landslides, have been responsible for signifcant loss of life and for damage and destruction of property. During 1999-2003, natural disasters affected an estimated 533,000 people and 18,000 houses and resulted in 142 deaths. The Government of Colombia has made considerable progress in managing disasters, particularly in the creation of institutions. Efforts havefocused principally on disaster management rather than disaster prevention. This chapter identifes structural deficiencies in the institutional flamework, inadequate funding, scarce andpoorly articulated information on risks and vulnerability to disasters, and absence of natural disasterprevention in planning efforts. Theseshortcoming must be addressed by strengthening natural disaster prevention policy implementation at the local and national levels, increasing involvement of regional and national environmental authorities in the reduction of vulnerability to natural disasters, and strengthening disaster information through improved monitoring and alert systems and comparative risk assessments. Doing so will enable Colombia to mitigate the consequences of natural disasters in a sustainable manner. The role of the Autonomous.Regional Corporations is particularly crucial in local disaster prevention and management because they are the principal repositories of knowledge about the characteristics of the areas under their jurisdiction. Introduction 10.1 Colombia is extremely vulnerable to natural disasters for three main rea~0ns.I~~mountainous A topography with high rainfall creates flood and landslide risks that are greatly exacerbated by deforestation and unsustainable agricultural practices. Much o f Colombia is located on the Andean fault line where several tectonic plates meet, which puts it in a position o f great risk o f earthquakes, volcanic eruptions, andtsunamis. Inaddition, the country is affected by ElNiiio, which periodically causes severe drought andflooding. 10.2. This chapter discussesthe issues associated with the occurrence o f natural disasters inColombia and evaluates the adequacy of existing policies to manage natural disasters. It presents background information on the nature, frequency, and geographical distribution o f natural disasters in Colombia; discusses the policy and institutional alternatives for preventing and mitigating natural disasters; and offers conclusions andrecommendations. NaturalDisastersinColombia 10.3 Major natural disasters'35 in recent Colombian history include earthquakes in Cccuta (1875), Caldas (1979), Popayh (1983), Atrato (1992), Tauramena, Pereira, Pasto (1995), and Armenia (1999), 134Allan Blackman, Yewande Awe, Peter Brandriss, andCarolina Urmtia authoredthis chapter, which draws heavily from background documents prepared for this study by Blackman and others (2005) and Larsen (2005), and the ProgramDocument for the DisasterVulnerability Reduction FirstPhaseAdaptableProgram-Loan Number72930-CO. 135Colombia's National Disaster Preparedness and Response Plan (Plan Nacional para la Prevencidn y Atencidn de Desastra, PNF'AD) defines key terms as follows. A "disaster" is a situation caused by a natural, technological, or human-caused phenomenon that results in intense alteration in people, goods, services, or the environment. 233 repeated volcanic activity inthe Nevado del Ruiz and Galeras volcanoes, andtsunamis inTumaco (1906 and 1979). 10.4 Damage to property and loss o f life caused by natural disasters is costly. Table 10.1 presents information on the incidence o f natural disasters andtheir costs inCentral and South America during 1970- 1999. Duringthis period, Colombia experienced on average 2.97 naturaldisastersper year, the third-highest annual rate among the 19 countries inboth regions. Inaddition, an estimated 30,000 deaths were causedby these natural disasters, the third-largest number for the two regions. These events resulted inlosses o f more than $4,500 million, or 11.5 percent o f the country's 1995 GDP. The high frequency of occurrence of natural disasters, the toll these events have taken on human lives, and the additional constraints that the economic losses impose on the country's budgetary resources underscore the needto develop more robust institutional responses. Table 10.1: Disaster ExposureIndicatorsinCentral andSouthAmerica, 1970-1999 Disaster occurrence Fatalities Economic losses Per Per Per 1,000 1998 1995 Country Total year km2 Total inhab. mill.US$ (99) CentralAmerica Belize 6 0.2 0.3 5 0.02 33.8 5.4 CostaRica 33 1.1 0.7 287 0.08 1,117.5 13.4 ElSalvador 16 0.5 0.8 2,880 0.50 2,7 13.9 22.9 Guatemala 28 0.9 0.06 24,139 2.20 3,062.5 17.3 Honduras 28 0.9 0.3 17,347 2.90 4,239.5 82 Mexico 117 3.9 0.06 15,594 0.20 13,822.5 3.60 Nicaragua 26 0.9 0.2 13,067 2.90 5,780.5 338.4 Panama 15 0.5 0.2 152 0.06 170.0 1.8 SouthAmerica Argentina 48 1.60 0.02 685 0.02 11,201.0 3.8 Bolivia 31 1.03 0.03 787 0.10 4,919.9 21.0 Brazil . 102 3.40 0.01 4,462 0.03 1,756.7 2.2 Chile 47 1.57 0.06 997 0.07 16.238.1 6.3 Ecuador 46 1.53 0.20 7,091 0.61 6,824.5 42.5 Guyana 5 0.17 0.10 0 0.00 29.8 4.6 Paraguay 16 0.53 0.04 109 0.02 116.1 1.4 Peru 78 2.60 0.06 72,475 2.98 5,988.7 io.3 Uruguay 7 0.20 0.04 2 0.00 30.0 0.2 Venezuela 19 0.63 0.02 30,446 1.40 2,055.2 2.2 AVERAGE 40 1.32 0.17 11,599 0.78 4,450 31 Source: CharvCriat (2000). "Prevention" is a set of measures put in place in order to avoid or reduce an anticipated event's impact on people, goods, services, and the environment. "Mitigation" consists of measures intendedto reduce or diminish risk to an "acceptable" levelwhen itis notpossibleto eliminateit. 234 Figure 10.1: Geographical Distribution of NaturalDisaster Threats in Colombia N A W W FOR Subdidencia lauiidrclolcra Wnncr InaaWlansc SOU? Red de Desarrollo Figure 10.2: Cumulative Monthly Occurrence of Flooding, Landslides, and other Disasters Figure 7.8. Cumulative MonthlyOccurrence of Flooding, Landslides,and Other Disasters 325 300 [ aLandslidesUFlooding OOther 275 250 225 200 2175 I50 125 I00 75 50 25 0I e f Months 235 10.5 Figure 10.1 shows the distribution o f major natural disaster threats by region in Colombia. According to the figure, the Pacific, Andina, Ammonia, Orinoquia, and Caribe regions are threatened by floods, andthe Pacific, Andina, andCaribe regions are threatened by landslides. Occurrence and Impacts of Natural Disasters 10.6 While individual earthquakes and volcanic eruptions cause the most dramatic damage and greatest loss o f life, rainfall andclimatic events are more frequent andwidespread. Floods andlandslides, which occur most frequently duringthe rainy months o f May, June, October, andNovember, account for two-thirds o f all disasters. (Figure 10.2) 10.7 Larsen (2004) estimates that during 1999-2003, 142 people per year were killed in natural disasters, and 533,000 people and 18,000 houses per year were affected in some way (Tables 10.2, 10.3 and 10.4). In the same period, earthquakes accounted for a majority o f deaths, injuries, and houses destroyed, and floods affected the greatest number o f people. Earthquakes-not including the earthquake that devastated Armenia in 1999-accounted for 63 percent o f deaths, 76 percent o f injuries, 56 percent o f houses destroyed, and 13 percent o f people affected by natural disasters. In comparison, floods accounted for 8 percent of deaths, 3 percent o f injuries, 20 percent o f houses destroyed, and 71 percent o f the people affected by natural disasters. Avalanches and landslides, mainly related to heavy rainfall, accounted for another 5 percent o f people affectedby natural disasters. 10.8 During 1999-2003, nearly 2 millionpeople were affectedby floods alone, not includingimpacts caused by landslides and storms. In2003 alone, 390,527 people were affected by floods, landslides, and storms (floods 328,304 people; landslides 6,279 people, andstorms 55,944 people). Table 10.2: Percentageof Disaster Impactsby Type ofDisaster 1999-2003 (%) ~~ Injured Persons Houses Houses Event Deaths persons aflected destroyed damaged Landslides 18 6 3 6 5 Floods 8 3 71 20 35 Storms 0 5 7 5 25 Droughts 0 0 3 0 0 Fires, buildings 1 ' 2 0 a 0 Fires, forest 0 0 1 0 0 Avalanches 3 1 1 4 2 Earthquakes 63 76 13 56 32 Contamination 0 4 0 0 0 Other 6 2 1 0 1 Total 100 100 100 100 100 Note: Not includingthe Armenia earthquake. Source: Larsen (2004), derived fromDGPADdatabase. 236 Table 10.3: ImpactsofNaturalDisasters1999-2003 Impact 2003 2002 2001 2000 1999 * Deaths 122 142 74 96 276 Injuredpersons 420 39 379 111 351 Missing persons 18 52 28 15 60 Number ofpeople affected('000) 436 343 205 468 1,214 Familiesaffected('000) 88 67 40 94 240 Housesdestroyed('000) 2.1 1.3 1.6 2.5 5.5 Housesdamaged('000) 16.8 10.2 14.5 10.9 26.2 Roadsdamaged 31 83 66 135 375 Bridgesdamaged 8 13 14 61 123 Pedestrianoverpasseshridgesdamaged 10 22 20 57 126 Water supply systems affected 6 119 21 91 136 Sewage systems affected 1 1 1 5 30 Health centers affected 6 8 8 11 7 Schools, educationcentersaffected 45 65 64 76 89 Communitvcenters affected 31 62 40 31 62 ~~ ~ ~~~~ Note: Not includingthe Armenia earthquake. Source: Larsen(2004) derivedfromDGPADdatabase. Effectivenessof Policy Design 10.9 This section discusses and evaluates the existing policy and legal framework for addressing natural disasters inColombia. Natural DisasterLaw 10.10 Law 9 of 1979 created national-, regional-, and local-level disaster management institutions known as Emergency Management Committees, and established disaster preparedness and management procedures. At the national level, the National Emergencies Committee (Comitd Nucionul de Emergencius, CNE) is responsible for, among other functions, declaring the beginning and end o f an emergency and for coordinating disaster response activities. Local Emergency Committees are required to prepare a contingency planfor each o fthe different types of disastersthat threaten their communities. The contingency plans are to be basedon a vulnerability assessmentanda disaster planningexercise The CNE is responsible for presenting such plans to the Ministry o f Health for approval and for requesting foreign assistance for disasters. Inaccordance with the law, the Ministry o f Healthis responsible for coordinating training programs needed to facilitate the contingency plans, and for providing care to injured people, managing corpses, andimplementing waste disposal andother sanitary measures. Table 10.4: Annual Average ImpactsofNaturalDisasters, 1999-2003 Impact 1999-2003 Deaths 142 Numberofpeopleaffected('000) 533 Houses affected('000) 18 *Not includingtheArmenia earthquake. Source: Larsen(2004), derived fromDGPADdatabase. 237 Table 10.5: Number ofPeopleAffected by Landslides,Floods,and Stormsin2003 Department Total Landslides Floods Storms Choc6 116,502 96 113,896 2,510 Bolivar 46,607 374 44,813 1,420 Antioquia 30,878 30 25,273 5,575 Boyaca 30,685 1,830 28,100 755 Magdalena 25,105 0 24,355 750 C6rdoba 24,570 0 17,010 7,560 Sucre 18,770 0 15,369 3,401 Amazonas 9,955 0 9,955 0 Santander 9,480 530 8,950 0 Atlhntico 8,376 0 346 8,030 Putumayo 6,445 0 4,935 1,510 Cauca 6,393 85 356 5,952 Cesar 6,319 0 3,516 2,803 Caqueta 6,165 95 4,040 2,030 Casanare 5,786 0 5,786 0 Tolima 5,518 573 1,410 3,535 Valle 5,505 280 4,850 375 Norte de Santander 5,421 1,762 3,213 446 Quindio 4,527 35 60 4,432 Risaralda 4,020 438 0 3,582 Caldas 3,839 390 3,106 343 Arauca 3,155 0 3,155 0 Guainia 2,000 0 2,000 0 Cundinamarca 1,409 189 1,220 0 Guajira 1,180 0 245 935 Guaviare 1,025 0 1,025 0 Vichada 790 0 790 0 Meta 325 0 325 0 SanAndrds 105 0 105 0 Narifio 100 0 100 0 Huila 22 22 0 0 Vaupes 0 0 0 0 Total 390,977 6,729 328,304 55,944 10.11 Law 46 of 1988, the country's main national disaster regulation, created the National Disaster PreparednessandResponse System (Sistema Nacional de Prevencibn y Atencidn de Desastres, SNPAD). It gave SNPAD responsibility for: (a) defining the functions o f all public andprivate institutions related to disaster prevention and management; (b) integrating public and private efforts for disaster prevention and management; and (c) guaranteeing timely. and efficient management o f the human, technical, administrative, and economic resources necessary for preventing andmanaging disasters. At the national level, the two most important institutions inSNPAD are the National Disaster PreparednessandResponse Committee (Comite' Nacional para la Prevencidn y Atencibn de Desastres, CNPAD) and the National 238 Disaster Preparedness and Response Office (Ofcina Nacional para la Prevencidn y Atencidn de Desastres, ONPAD), now known as the General Directorate for Disaster Preparedness and Response (Direccidn Generalpara la Atencidn y Prevencidn de Desastres, DGPAD) and located inthe Ministry o f Interior and Justice.'36 CNPAD is a high-level committee, presided over by the President, which heads SNPAD andcoordinates its activities through the DGPAD. 10.12 The DGPAD is responsible for coordinating day-to-day disaster response planning and management. Funding for the DGPAD is provided by the National Calamity Fund (Fondo Nacional de Calamidades, FNC). The DGPAD is also responsible for organizing an integrated informationsystemthat . facilitates the identification o f disaster risks. Law 46 o f 1988 assigns to the DGPAD the responsibility o f promulgating (by presidential decree) a National Disaster ReliefandPreventionPlan (Plan Nacional para la Prevencidn y Atencidn de Desastres, PNPAD). By law, PNPAD is required to address, through national, regional, and local planning offices, a wide range o f issues including: (a) disaster prevention, immediate management, and reconstruction; (b) all relevant technical, scientific, economic, funding, community, judiciary, and institutional topics; (c) educational and participatory issues; (d) integrated informationandcommunication systems; (e) the role o fmass media; (f)interinstitutionaland intersectoral coordination; and(g) identification o fneeds for research or technical studies. 10.13 CREPAD and COLPAD. Law 46 o f 1988 created regional- and local-level disaster prevention and management institutions: the Regional Disaster Prevention and Relief Committee (Comitk Regional para la Prevencidn y Atencidn de Desastres, CREPAD) and the Regional Disaster Prevention and Relief Committee (Comitk Local para la Prevencidn y Atencidn de Desastres, COLPAD). Each department is requiredto have a CREPAD andeach municipality a COLPAD. 10.14 Decree-Law 919 of 1989 implements the provisions o f Law 46 o f 1988. The decree-law identifies the members o f SNPAD and defines their responsibilities and functions; proposes general guidelines for managing disasters and procedures to be followed by each institution for prevention and management o f potential and actual disasters; requires that the recommendations o f PNPAD be included in any Land Use Plan; mandates both the prioritization of risk mitigation activities in key economic sectors and the creation o f a National Disaster Information System-a repository o f data on risks and vulnerabilities, and o f guidance on disaster prevention and risk mitigation measures; and clarifies the criteria for declaring a state o f emergency and for its termination. When a situation does not qualify as a state o f emergency, it is to be considered a "public calamity" and is eligible to be upgraded to a state o f emergency duringthe three months after the event. 10.15 Decree 93 of 1998. While Law 46 o f 1988 mandated the newly created DGPAD to prepare a PNPAD, Decree 93 o f 1988 states that the main goal o f the PNPAD i s to guide the actions o f the government and civil society in order to prevent and mitigate disaster risks and to attend to and restore areas that have suffered a disaster. 10.16 Proarams. Decree 93 of 1998 stipulates that research on andthe knowledge o f risks should be the basis o f the decision-making and planning processes. Toward that end, SNPAD develops programs in four areas: (a) identifying and characterizing sources o f risk, (b) incorporating risk reduction and prevention in planning mechanisms, (c) strengthening the SNPAD's institutions, and (d) information disclosure programs. The decree describes specific activities meant to further these programs. These include: installing a surveillance, detection, and alert network; developing an inventory o f risks and 136 ONPAD was originally located in the Administrative Department of the Presidency of the Republic. It was moved to the Ministry of Government by Decree 1680 o f 1991. Decree 2035 of 1991 and Decree 372 o f 1996 changed the Ministry of Government into the Ministry of Interior, andDecree 2546 of 1999 merged the Ministry of Interior with the Ministry of Justice to create the Ministry of Interior andJustice. 239 threats; includingdisaster prevention criteria in development plans; conducting inventories o f settlements located in high-risk areas; supporting relocation activities; defining housing standards; preparing a communication network among SNPAD institutions; strengthening SNPAD's agencies; preparing contingency plans for the rehabilitation o f utilities in the case o f a disaster; establishing temporary management facilities for social housing and infrastructure reconstruction and relocation; designing an integrated information system and a documentation center network; and developing a national capacity- buildingsystemfor government employees andcommunity leaders. 10.17 Coordination between SINA and SNPAD. Decree 93 o f 1998 states that SINA and SNPAD should coordinate their activities in areas such as: (a) vulnerability, threats, and risks at the national, regional, and local level; (b) the inclusion o f risk mitigation and disaster prevention in environmental impact assessments (EIAs) and environmental management plans; and (c) including risk as a trigger for the prohibitiono f certain landuses. The Relationship between the National Environmental System and the National Disaster Response and Prevention System 10.18 Law 99 o f 1993 established a National Environmental System (Sistema Nacional Ambiental, SINA) and created the Ministry o f the Environment (Ministerio del Medio Ambiente, MMA) to head the SINA. Several provisions o f the law relate to disaster prevention and relief. One o f the law's basic principles is that disaster prevention and attention are matters o f collective interest and, as a result, SINA is required to promote them. In addition, among the many functions assigned to the MMA is the evaluation, follow-up, and control o f natural disaster risks. Law 99 o f 1993 directs the MMA to coordinate actions aimed at anticipating and preventing emergencies, and stipulates that the Ministry o f Government andthe MMA musteffectively coordinate the activities o f SINA andSNPAD. 10.19 Law 99 o f 1993 assigns CARS-the regional authorities within the SINA-principal responsibility for implementing a wide range o f environmental and natural resource policies, including disaster prevention andmanagement. The law establishes that one o f the functions o f CARs i s to organize activities for the analysis, follow-up, prevention, and control o f disasters, in coordination with other competent authorities. It also stipulates that CARs are to provide assistance to such authorities on the environmental aspects o f disaster prevention and relief. CARs are directed to work jointly with the local and regional institutions to improve the safety o furbanareas locatedinhigh-riskzones. Laws Relating to Funding of the National Disaster Prevention and Relief System (SNPAD) 10.20 A variety o f institutions comprise SNPAD, and they are funded from different sources. As such, they allocate their fimding to disaster prevention and management and to their other tasks and responsibilities. The DGPAD, located within the Ministry o f Interior and Justice, is unique in that it i s allocated a budget from a single source-general revenues-and consequently focuses solely on disaster prevention andmitigation. 10.21 Decree 1547 of 1983 creates the National Calamity Fund (Fondo Nacional de Calamidades, FNC) as a national account with administrative, accounting, and statistical independence. The decree stipulates that the FNC's funds are to be used to: (a) provide financial support for disaster relief; (b) control the effects o f catastrophes, especially those involving epidemics; (c) support rehabilitation and restructuring o f basic sanitation facilities; (d) finance information systems and other equipment necessary to diagnose and manage catastrophic situations; and (e) take actions to prevent or attenuate the effects o f disasters. 240 10.22 Law 60 of 1993 deals with the allocation of financial resources among municipalities, and states that these resources are to be used for stabilizing high-risk zones, relocating households at risk, and preventing andaddressing disasters (in addition to funding education, health, housing, andutilities). 10.23 Law 715 of 2001 replaces Law 60 of 1993. It creates the General Participation System (Sisternu General de Participaciones) for municipalities to use to promote, fund, or co-fund projects o f municipal interest, including those related to natural disasters. Law 715 mandates that the municipalities, the national government, and the Departments cofinance projects to prevent and address natural disasters within theirjurisdiction, includingrelocation ofhouseholds inhigh-risk zones. Institutions andActivities Involved in the Design andImplementation of Colombia's Natural . Disaster Policy 10.24 Like Colombia's National Environmental System (SINA), the country's National Disaster Preparedness and Response System (SNPAD) is an all-encompassing set o f institutions spanning the public andprivate sectors andthe national andregional levels. The disaster preventionpolicies o f SNPAD entail four types o f activities: (a) developing information on disaster risks, (b) incorporating disaster prevention and mitigation into planning activities and construction codes, (c) strengthening SNPAD institutions, and(d) promotingeducation on disaster prevention andmitigation. 10.25 Develouinn information on disaster risks. The DGPAD is responsible for building an Integrated Disaster Information System that includes data on risks and vulnerabilities, and surveillance, detection, andearly warning networks. Many networks that are supposedto comprise the system are runby entities that specialize inrelated functions. For example, INGEOMINAS is responsible for the seismological and vulcanological network, IDEAM manages the hydrometeorology network, and mayors' and governors' offices are responsible for the disaster alert networks. The DGPAD, CREPADs, and COLPADs are in charge o f building documentation centers that cover their management levels-national, departmental, and municipal, respectively. Risk and threat inventories are a central component of the effort to build knowledge about disaster risks. Law 9 o f 1989 originally mandated such inventories and gave the territorial entities responsibility for carrying them out. Subsequent decrees and policies spread responsibility for these inventories among various institutions with relevant expertise. For example, INGEOMINAS is charged with preparing seismological and volcanic risk maps, and IDEAM is responsible for hydrometeorology riskmaps. 10.26 Incornoratinn disaster urevention into planning and construction. According to Colombian law, disaster prevention and mitigation considerations are supposed to be incorporated into land use, contingency anddevelopmentplanning, andconstructioncodes. 10.27 Land use planning. Municipalities and CARS share responsibility for incorporating disaster considerations into Land Use Plans (POTs). Municipalities are responsible for including in their POTs detailed inventories o f areas at highrisk o f natural disaster. CARSare responsible for verifying that high- riskareas are clearly identifiedinPOTs. Once an area has been classified as highrisk, either the mayor's office or the CAR can make a determination that the area i s unfitfor infrastructure or occupation. Insuch cases, by law households inthese areas should be relocatedto alternate areas that have been identifiedby the municipality. National subsidies can finance some o f the relocation, which falls under the responsibility o f the MAVDT. Inaddition to identifying areas suitable for resettlement, municipalities are also responsible for identifying locations to be used as temporary housing and shelter facilities in the event of a disaster. When disaster actually strikes, the mayor's office is required to publish a request for the temporary (up to one year) occupation o f these locations. These locations can be purchased or even expropriated by force if necessary. In consideration for this use, the municipality is supposed to compensatethe (public or private) owner. 241 10.28 Contingency planning. For national-level disaster risks, contingency plans are the responsibility of the National Technical Committee in association with the DGPAD. For regional- and local-level risks, contingency plans are to be prepared by CREPADs and COLPADs and approved by the governor's or mayor's office. In addition, municipalities are responsible for ensuring that public services companies (utilities) conduct a vulnerability assessment o f the existing utilities and prepare contingency plans. Municipalities are required to request that any public service company planningto construct new facilities carry out a risk and vulnerability assessment in order to prevent the building o f facilities in high-risk areas. 10.29 Development planning. It is important to incorporate prevention and mitigation considerations into planning activities regarding economic and social development planning at the national, departmental, and municipal levels. The Planning Office (the Department o f National Planning at the national level) is uniquely positioned to incorporate disaster prevention and relief into its Development Plan. 10.30 Construction codes. Another planning-related mechanism to complete disaster prevention concerns construction codes. The PNPAD assigned the responsibility for defining housing standards to the Colombian Construction Chamber o f Commerce (Cdmara Colombiana de la Construccidn, CAMACOL), and to the Colombian Society o f Construction Engineers, both o f which are part o f the Permanent Advisory Commission for Seismic Resistant Construction. Territorial entities enforce compliance with these guidelines. 10.31 Strengthening o f SNPAD institutions. DGAPD and the MAVDT share responsibility for strengthening SNPAD institutions at the national level. Strengthening o f regional and local entities is to be carried out mainly by the DGPAD and MAVDT together with CARSand territorial entities. For assistance institutions such as the Red Cross and the army, responsibility for capacity buildingis shared among the Ministryo f Interior, the army, the police, andthe Ministryo fHealth. 10.32 Education. Disseminating information about disaster prevention and management among public andprivate sector officials and the public at large is the responsibility of the National Learning Service (SENA), the Ministrieso f EducationandEnvironment, DGPAD, CREPAD, andCOLPAD. Assessment of NaturalDisaster Policies GeneralEvaluations 10.33 Blackman and Morgenstern (2005) examined various sources o f information including data from interviews and written reports that evaluated the performance o f SNPAD. These sources indicate that SNPAD's disaster prevention efforts are not sufficient to meet demand associated to disaster risk management. Similarly, the generation, management, and dissemination o f information on disaster risks, and financing o fpreventionactivities, needto be strengthened. 10.34 Insufficient attention to disaster prevention, Stakeholders interviewed by Blackman and Morgenstem (2005) stated that SNPAD's design i s partly to blame for weak performance in disaster prevention. They stated that, in the spirit o f the 1991 Constitution, one o f SNPAD's defining characteristics is decentralization. A related key characteristic i s that many o f SNPAD's top institutions- including the National Technical Committee and the CREPADs and COLPADs-are composed o f preexisting institutions. These characteristics have presented advantages and disadvantages. Decentralization has enabled SNPAD to rely on local andregional resources inaddition to those provided by the national government. Moreover, SNPAD's reliance on existing institutions has enabled key institutions to be constituted expeditiously. However, because most o f the members o f important disaster 242 committees work in other capacities that do not involve disaster prevention and management, they often have limited time to tend to their day-to-day responsibilities within SNPAD. Stakeholders interviewedfor this study recognized that key disaster committees typically do not actively engage untilan actual disaster strikes (Blackman and Morgenstern2005). 10.35 Pollner, Codato, and Garcia (2002), CONPES 3146 o f 2001, and Freeman and others (2003) all concurred with the views o f the stakeholders interviewed, that SNPAD had failed to devote sufficient resources to disaster prevention. The main advice given by Pollner, Codato, and Garcia (2002) to SNPAD is that it focuses disproportionately on disaster management instead o f prevention. They note that the principal areas in need o f improvement include SNPAD's ability to: (a) assess risks and vulnerabilities, (b) build capacity for disaster management and prevention at the local level, and (c) generate non- emergency financing. CONPES 3146 o f 2001 states that, "Disaster management (versus prevention) is typically considered the main responsibility o f the [national, regional, and local] disaster committees despite PNPAD and other norms that mandate prevention." This analysis concurs with the assessment of stakeholders interviewed for this study that SNPAD's constituent members are typically not focused on participation in the system. It states, "The majority o f national entities in SNPAD have not incorporated this participation into their programs and statutes, a fact that limits their commitment to it." According to Freeman and others (2003), "...mitigation activities tend to relate to reconstruction rather than to risk reduction and tryingto avoidthe perpetuationo f vulnerability has beena challenge." 10.36 Poor information, communication, and coordination. A second set o f crosscutting problems within SNPAD includes poor information on disaster risks, poor communication about such risks, and poor coordination among constituent members o fthe system. As noted, Decree 919 o f 1989mandates that the DGPAD create a National Disaster Information System. Unfortunately, this information system remains incomplete and suboptimal. Several entities possess information that could be incorporated into the system. For example, the DGPADhas information on past disasters, IDEAMhas hydrometerological information, the Maritime General Directorate (DIMAR) has oceanographic information, and the National Institute o f Health (INS) has sanitation information. However, these informationsystems are not linked or integrated. The DGPAD personnel interviewed for this study stressed the need to gather in a single place all the disaster-related data contained inexisting informationsystems inColombia, including those for environmental, hydrographic, sanitation, mining, and oceanographic data. A related concern repeatedly expressed by a variety o f interviewees was the need for an improved system to allow for effective andtimely communications among the different members andlevels o f SNPAD (Blackman and Morgenstern 2005). 10.36 According to Pollner, Codato, and Garcia (2002), Colombia's information on disaster risks and vulnerabilities needs ~trengthening.'~~number o ffactors are suggested. For instance, funding for studies A and scientific instruments is inadequate. Many of the studies that do exist contain reasonably good scientific and technical information, but do not do a goodjob o f using it to assess risk and vulnerability. Moreover, the studies often use inconsistent methodologies and are not technically rigorous, Further, an 137 Pollner and others (2002) list five areas where information on disaster risk is relatively strong: (a) Detailed seismic maps and preliminary seismic vulnerability studies have been developed for Bogoti. (b) The Normus de Disefioy Construccidn Sismo Resistente (NSR-98) mandated seismic studies aimedat identifyingzones across the country where the probability of a seismic incident i s greater than 10 percent over the next 50 years. Accordingly, detailed seismic maps have been developed for Armenia, Bogotii, and Pereira. (c) The cities of Manizales and Tumasco have incorporated risk mitigation into their political agendas. (d) INURBE has commissioned housing condition evaluations that can be used to assess risk and vulnerability to natural disasters. (e) The Ministry of Developmenthas prepared maps of areas that are susceptible to floods, volcanoes, landslides, and earthquakes in 1,054 municipalities (withthe help ofIDEAM, INGEOMINAS, andIGAC). 243 integrated information system containing, for example, data on costs, death tolls, injuries, damages, and risks does not exist. 10.37 CONPES 3146 of 2001 supports the overall assessment o f SNPAD's information andsystems by Pollner, Codato, and Garcia (2002). According to CONPES 3146 o f 2001, at the national level SNPAD has knowledge about disaster threats because it comprises several scientific institutions. However, SNPAD has limited knowledge about physical, social, economic, and cultural vulnerabilities to these threats. For example, SNPAD may have good seismic maps, but poor informationabout what these maps imply for populations living in earthquake-prone areas. As a result, modeling or quantification of the impact o f potential disaster risks is difficult. CONPES 3146 o f 2001 also states that, in order for the National Disaster Information System to be developed adequately, links among SNPAD,the National System o f Science and Technology (SNCyT), and SINA need to be strengthened. Specifically, the new system would need to integrate the following existinginformation systems and sources: (a) MAVDT; (b) the Sistema Nacional de Informacidn Oceanogrdjca (Comisidn Colombiano del Ockano, CCO); (c) the Sisterna de Informacidn de Agua Potable y Saneamiento Bdsico (MDE); (d) the Sistema de Potencialidades y Restricciones para el Desarrollo Minero-Energktico (MME); (e) regional and local systems such as the Sistema de Informacidn para la Gestidn de Riesgos y Atencidn de Emergencias (SIRE) (Alcaldia de Bogotd and INGEOMINAS); (r) information kept by CARS; and (g) the SNPAD information center. 10.38 In addition, the CONPES 3146 of 2001 cites SNPAD's lack of an integrated system of communication among far-flungconstituent institutions, andweak coordination among these members at the national, regional, and local levels. According to CONPES 3746, among the most urgent communication issues is strengthening the natural disaster monitoring and alert systems (Pollner, Codato, andGarcia2002). There is also aneedfor coordinationprotocols depending on levelofrisk. 10.39 Both CONPES 3146 o f 2001 andPollner, Codato, andGarcia (2002) suggest that SNPAD devote sufficient attention to awareness raising andpublic education on disaster risk mitigation. Although some education efforts exist, a nationalpublic education campaign strategy is needed. 10.40 The DGPAD implements policies set by SNPAD and is responsible for its day-to-day operation, including disseminatingplans andactions to CREPADs and COLPADs, designingpolicies andpresenting draft laws and decrees, receiving and directing petitions for declaration o f emergencies and disasters, executing agreements and contracts with entities that will respond to disasters or emergencies, budget assignment, andtechnical support for disaster preventionandrelief. 10.41 Several o f the stakeholders interviewed for this study by Resources for the Future (RFF) researchers at both the national and regional levels stated that o f the many institutions that comprise SNPAD, the DGPADhas the best understanding o f its role and o f the procedures that are to be followed during a disaster. Despite these positive informal evaluations, according to CONPES (2001), the DGPAD has faced a number o f obstacles in recent years. For example, it has been reformed and restructured repeatedly, generating considerable political, financial, and institutional instability; as a part o f the Administrative Department o f the Presidency, it had significantly greater resources andautonomy than it has today as part o f the Ministry o f Interior andJustice; and while the DGPAD was originally allocated a budget from general national revenues, its budget now comes from the Ministry o f Interior and Justice. According to CONPES 3146 o f 2001, the reduction in the DGPAD's budget and cuts inpersonnel have affected its performance. 10.42 The National Technical Committee comprises entities with considerable technical and scientific expertise. Nevertheless, according to CONPES 3146 o f 2001, committee members do not always have the most appropriate expertise, andsometimes have little influence. 244 Table 10.6: ProjectedEconomic Loss from Disasters and Government FinancingNeeds (million US%) 20-year 50-year 100-year Country event ($) event (8) event ($) Projectedloss Bolivia 200 600 1,000 Colombia 2,000 5,000 8,000 Dominican Republic 1,250 3,000 6,000 El Salvador 900 3,000 4,500 Financingneeds (50% loss) Bolivia 100 300 500 Colombia 1,000 2,500 4,000 DominicanRepublic 625 1,500 3,000 ElSalvador 450 1,500 2,250 Source: Freemanandothers (2003). 10.43 The National Operations Committee is composed o f institutions that focus primarily on natural disasters, emergencies, and calamities, such as the Civil Defense, Red Cross, Ministry o f Health, and National Firefighting Board. According to CONPES (2001), the National Operations Committee has severe financial difficulties because the entities assigned to it typically have minimal operatingbudgets. 10.44 CREPADs and COLPADs. As noted, Pollner, Codato, and Garcia (2002) identify limited local- level capacity for risk prevention and mitigation as one o f SNpAD's key deficiencies. There is no centralized repository o f information on CREPADs and COLPADs, and in fact, according to CONPES (2001), no evaluation of Colombia's over 900 CREPADs and COLPADs has ever been conducted. Therefore, much o f the performance data in this study are derived from interviews with stakeholders in selected areas, including coordinators o f CREPADs in the Cauca Valley, San Andrts, and C6rdoba. Following is a discussion o f some o f the issues that the CREPADs and COLPADs face, thus, affecting SINA's performance. 10.45 Resources. Funding for CREPADs and COLPADS, including salaries o f support staff, comes directly from departments andmunicipalities, respectively. According.to stakeholders interviewed for this report, these funds are almost always insufficient. Further details on funding are included in the next section. 10.46 Staffing. As with many institutions in SNPAD, CREPADs, and COLPADs are staffed by representatives o f existing institutions related to natural disasters. This staffing situation has important disadvantages, perhaps the most important o f which, accordingto stakeholders interviewed for this report, is that local disaster committee members typically focus on responsibilities other than disaster prevention and management. For example, the CREPAD coordinators interviewed for this study all hadhigh-ranking positions in the governors' administration, including Department Secretaries and Department Planning Secretaries. While this ranking no doubt imbues disaster committee directors with more power and influence than they would otherwise have, it also implies that their day-to-day responsibilities tend to crowd out their natural-disaster-related responsibilities. 10.47 Interviews with CREPAD directors conducted for this study confirmed this disadvantage. The directors did not appear to be particularly well informed about disaster prevention-most did not have information on prevention activities or projects underway in their departments, which could reflect a 245 paucity o f ongoing prevention activities. Notwithstanding their poor knowledge o f disaster prevention activities, the CREPAD directors interviewed for this study generally had good information on the budgetary resources allocated for the management o f actual disasters. 10.48 Role o f CARs. In principle, CARS should play a vital role in local disaster prevention and management because they are the principal repositories o f knowledge about the natural, physical, geographical, climatological, andgeological characteristics o f the areas under their jurisdiction, However, the actual role of CARs in local disaster prevention and management appears to be limited. Many of the CAR staff interviewed for this study (from CVC, CAR, and Coralina) were unaware that Law 99 o f 1993 assigns the CARSresponsibilities for disaster prevention and risk assessment. 10.49 Performance. According to stakeholders interviewed for this report, although there i s sometimes a delay in convening CREPADs and COLPADs after an actual disaster, the committees generally operate according to previously defined procedures. The governor o f the department as head o f the CREPAD, or the mayor of the municipality as head of the COLPAD, coordinate the different prevention and management activities and institutions so that the emergency is managed expeditiously. Table 10.7: ExpectedAnnualizedLoss Dueto 20-year to 100-year NaturalDisasters As percent of Country Million US$ GDP Govt. expenditures Bolivia 10 0.12 0.4 Colombia 85 0.08 0.6 DominicanRepublic 54 0.34 1.8 El Salvador 48 0.40 2.2 Source: Freemanand others (2003). Evaluationof FundingRequirementsandArrangements 10.50 Cost implications o f natural disasters in Colombia are daunting. Table 10.6 presents estimates from Freeman and others (2003) o f economic losses due to natural disasters in Colombia and three other countries in Latin America, and financing needs (assuming that countries must cover half o f the costs o f managing natural disasters). They estimate the cost to Colombia o f each 20-year event at US$2 billion, each 50-year event at US$5 billion, and each 100-year event at $US8 billion. As mentioned, Colombia i s exceptionally vulnerable to natural disasters, a fact that supports the highcost for Colombia relative to the other countries examinedby Freeman andothers. 10.51 Table 10.7 presents estimates from Freemanandothers (2003) o f the annualizedlosses due to 20- year to 100-year natural disasters for the study countries. The annualized loss is defined as the amount of money that the country would need to set aside each year to cover the cost o f these disasters. For Colombia, the annualized loss represents 8 percent o f GDP, or 60 percent o f annual government expenditures. 246 Table 10.8: DisasterFundingby Sourceand Year (million 2004 pesos) COLPADs/ Aid Mixed aid (CREPAD/ Other Year FNC CREPADs orgs COLPAD/FNC) entities Total 1993 737 38 0 120 0 158 1994 1,511 825 2 14 75 916 1995 3,142 915 0 26 449 1,390 1996 2,456 471 21 149 0 641 1997 252 118 0 52 0 170 1998 6742 22 0 0 0 22 1999 14,065 0 0 23 0 23 2000 4,305 0 0 0 0 0 2001 3,179 29 0 0 0 29 2002 2,902 0 0 0 0 0 2003 6,273 0 0 0 0 0 Total 45,564 2,418 23 384 524 48,913 Avg. % 93% 5% 0% 1% 1% 100% Source: DGPAD. 10.52 Sources of funding. The FNC is clearly the principal domestic source of disaster management funding (Table 10.8). Of the C$49 million spent on disaster management during 1993-2003, 93 percent was provided by the FNC, 5 percent by COLPADs and CREPADs, 1percent by other entities such as municipalities and private foundations, and less than 1percent by aid organizations, including the Red Cross, Civil Defense, and army. Because COLPADs and CREPADs do not have their own resources, their contributions mustcome fromthe entities that comprisethem. 10.53 Reactive instead of proactive funding. The FNC was initially capitalized with direct appropriations from the national budget. The intention was to create a reliable, stable reserve fund that could be used expeditiously in the event of a natural disaster. Recently, however, the FNC's funding arrangements have changed. Instead of a constant infusion of funds aimed at building up a reserve, the FNC now receives major infusions of funding only after a disaster has occurred. CONPES 3146 of 2001 notes that the new mode of funding generates sudden fiscal destabilizations and slows response time duringmajor catastrophes. Pollner, Codato, and Garcia (2002) agree with this observation and identify "cyclical and sometimes politically driven funding" as one of SNPAD's major weaknesses. Table 10.9 shows total budget allocations to the FNC. By far the largest allocations occurred in 1995 and 1999. However, in 1995 roughly 50 percent of the total allocation was additional, and in 1999, roughly 95 percentwas additional. 10.54 CONPES 3146 of 2001, Pollner, Codato, and Garcia (2002), and Freeman and others (2003) all agree that one important potential source of funding-natural disaster insuranceprograms-have not been explored in sufficient depth. The main reason is that SNPAD's efforts have been primarily focused on respondingto emergencies. 10.55 Inadequate funding for prevention. Allocation of SNPAD resources has been disproportionately focused on disastermanagementinsteadof prevention. Accordingto CONPES 3146of 2001, of the total budget of the FNC, roughly 80 percent is devoted to disaster management and only 20 percent to prevention. For 2001-2004, resources used for prevention totaled roughly C$250 million, less 247 than 2 percent o f the C$12,850 million requested by the DGPAD for the 2002 Disaster Prevention Program. Pollner, Codato, and Garcia (2002) decry the lack o f funding for the development o f disaster prevention and contingency planning. They report that funds are rarely designated for this purpos+ especially at the local level-and evenwhen they are, they are often divertedto emergencies. 10.56 The problem o f inadequate funding for prevention is partly structural in nature. One o f the motivations for SNPAD's decentralized design was to give it access to resourcesfrom the general budget o f the various entities that comprise the system, including departments, municipalities, and the Red Cross. Although disaster planning and management was to be "mainstreamed" into the normal planning and investment activities o f SNPAD's constituent institutions, this has not happened. SNPAD's decentralized resources have been devoted almost exclusively to disaster management, not prevention. For example, o f the C$187,412 million of investment made by municipalities during 1997-2000, less than 1 percent was directed to disaster preventionandmanagement(CONPES 3146). Table 10.9: Initial, Additional, and Total Budget Allocation to FNC(millions of2001Desos)) Year Initial % Additional %* Total 1995 50 50 17,500 1996 90 10 7,000 1997 100 0 5,000 1998 80 20 5,000 1999 95 5 28,154 2000 100 0 15,000 2001 --- --- 10,449 2002 --- 12,500 2003 ___--- ___ no data 2004 -__ --_ 3,800 Average 86 14 11,600 *Following actual natural disaster estimated from CONPES 3146 of 2001 figures. Sources: CONPES3146of2001 and DGPAD2004. Evaluation of Disaster Planning 10.57 Decree 93 o f 1998-the PNPAD-mandates that both national and local institutions develop detailed disaster contingency plans. Several "sectoral" disaster plans-that is, plans, laws or regulations covering specific economic sectors-have been adopted. According to CONPES (200l), however, many have been problematic. For example, the plan for dealing with the impact o f El Niiio has not been developed or monitored adequately; there has been considerable difficulty implementing the farm insurance law; the law regarding earthquake resistance mandated vulnerability studies in various sectors, but only 20 percent of health care institutions have completed these studies; and the regulation of the transportation o fhazardous substances i s inadequate. 10.58 Development o f localcontingency plans has also been inadequate.By law, Territorial Development Plans (Planes de Desarrollo Territorial,PDTs) are supposedto contain Emergency andContingency Plans (Planes Locales de Emergencia y Contingencias, PLECs). Table 10.10 presents data on the number o f municipalities that have been offered capacity building services by the DGPAD to develop PLECs; unfortunately, only one-quarter o f all municipalities had adopted plans, or were inthe process o f doing so. 248 Table 10.11presents data reported by the CARSon their adoption of PLECs. These data are not consistent with those collected by the DGPAD. According to these data, 36 percent of municipalities in the country have adoptedPLECs, not 25 percent. Nevertheless, bothfigures are quite low. Table 10.10: ImplementationofPLECs1998-2004 Year training Number of PLECs Department offered munic@alities M I EP CR Total % MuniciD. Amazonas `02 2 1 1 50 Antioquia `99 125 6 6 39 51 41 Arauca `02 7 1 1 14 Atlhtico `02 23 0 0 Bolivar `99-`02 45 5 1 6 13 Boyack `98-`00 -`02 123 15 10 25 20 Caldas `02 27 10 4 14 52 Caquetk NO 16 1 1 6 Casanare `02 19 1 1 2 11 Cauca `00 41 1 1 2 Cesar `98 `01 - 25 1 1 4 C6rdoba `01 28 0 0 Cundinamarca `98 117 0 0 Choco `01 26 1 1 4 6 23 Guajira `98 - `02 15 0 0 Guaviare NO 4 4 4 100 Guiania `0 1 1 0 0 Huila `01 37 0 0 Magdalena `02 30 17 10 27 90 Meta `02 29 6 2 8 28 NariAo `00 63 37 37 59 Nte de Santander `02 40 1 1 2 5 Putumayo `01 13 2 2 15 Quindio `02 12 5 6 11 92 Risaralda `00-`02 14 1 13 14 100 SanAndrks `02 2 1 1 50 Santander `99 87 0 0 Sucre `02 25 2 1 3 12 Tolima NO 47 1 1 2 4 Valle del Cauca `99 42 0 0 Vaupes NO 3 0 0 Vichada NO 4 0 0 TOTAL 18 1,092 40 33 35 112 220 25 M=electronicversion; I=paperversion; EP=inprocess; CR=foundinCREPAD. Source: DGPAD. 249 Table 10.11: ImplementationofPLECs by CAR andMunicipality(2002) Number of Municipalities withPLEC Entity municipalities Number Percent Cam 37 0 0 Car 104 0 0 Carder 14 12 86 Cardique 21 0 0 Carsucre 19 3 16 Cas 74 0 0 Cda 8 8 100 Cdmb 13 11 85 Codechoco 31 0 0 Coralina 2 0 0 Corantioquia 80 80 100 Cormacarena 10 0 0 Cornare 26 0 0 Corpamag 30 33 110 Corpoamazonia 31 5 16 Corpoboyaca 87 0 0 Corpocaldas 27 27 100 Corpocesar 25 0 0 Corpochivor 25 0 0 Corpoguajira 15 0 0 Corpoguavio 8 7 88 Corpomojana 7 7 100 Corponarifio 64 33 52 Corponor 40 40 100 Corporinoquia 64 0 0 Corpouraba 19 0 0 Cortolima 47 47 100 Cra 23 0 0 Crc 41 0 0 crq 12 12 100 Csb 24 7 29 cvc 42 0 0 cvs 28 0 0 TOTAL 1,098 605 36 Source: Self-reportedby CARSto the MAVDT. 250 Evaluation of LandUse Plans and Construction Standards 10.59 Besides PLECs, Colombian law mandates that different municipal, regional, and national planning mechanisms incorporate disaster prevention and management. Chief among these are POTs, which must include policies, directives, and regulations regarding the prevention o f natural disasters, the location o f humansettlements in high-riskareas, and management strategies for zones inhigh-riskareas. A preliminary analysis conducted by the DGPAD indicated that most o f the municipalities incorporate some disaster planning in the POTs, but a highpercentage "do so in a deficient way." Reasons include lack o f capacity indisaster issuesamong the staffresponsible for POTs. 10.60 CARs staff are responsible for supervising municipal POTs. Among the CARs staff interviewed for this study, there was a consensus that disaster planning and management are not appropriately addressed in POTs. Often the POTs are guided more by political considerations than technical ones. Moreover, even when POTs identify areas as high risk, households and businesses in these areas are rarely relocated. Insome cases, the mayor's office has relocated some o f the families living in high-risk areas-typically poor families that do not have the wherewithal to buy property-but new families have moved into informal (unlicensed, substandard) dwellings in the high-riskareas. According to MAVDT staff, a percentage o f the total subsidies budget is allocated to people affected by disasters. This percentage is small, however, and is only intended for people who have already been affected by a disaster, not for relocatingthose inhigh-riskareas. 10.61 Finally, both the Colombian Construction Chamber o f Commerce (Cdmara Colombiana de la Construccidn, CAMACOL) and the Construction Engineering Society have already produced basic earthquake-resistant standards for housing and infrastructure. Municipal offices that issue construction permits (Curadurias Urbanas) are charged with enforcing these standards. According to interviewees at DGPAD, however, littlemonitoringoccurs after a license hasbeenissued. Challenges to Disaster Prevention 10.62 As noted, natural disasters have significant impacts on human health, the environment, and the economy in Colombia,. Colombian law creates a wide-ranging system o f institutions-the SNPAD-to manage disasters. Although this legal foundation is not without weaknesses, the most important deficiencies in Colombian natural disaster policy clearly arise more from poor implementation than from flaws in policy design. Without exception, all o f the evidence reviewed for this report suggests that the most important general problem in implementing natural disaster policy is insufficient emphasis on disaster prevention, as opposed to disaster management. This problem has a number o f causes and manifestations. 10.63 Structural characteristics of the SNPAD. Three basic structural characteristics o f the SNPAD contribute to a lack o f emphasis on disaster prevention. First, because SNPAD has a decentralized organizational structure, the regional and local disaster committees-CREPADs and COLPADs-bear most o f the burden for implementing natural disaster policy. Inevitably, given regional disparities in overall levels o f institutional capacity within Colombia, some CREPADs and COLPADs are performing at a lower level than others. Ingeneral, the low-performing committees fail to give adequate attention to natural disaster issues except in the event o f actual disasters. For example, they are unlikely to develop disaster contingency plans, to incorporate disaster considerations into land use plans, to relocate households in high-risk areas, to enforce construction codes mandating earthquake resistance, or to help raise public awareness about disaster prevention. 251 10.64 Second, SNPAD i s composed o f all the institutions in Colombia at the national, regional, and local levels that have a bearing on natural disasters. This characteristic, along with decentralization, impliesthat communication and coordination among the various CREPADs and COLPADs, and among these institutions and national-level SNPAD entities, are complex and costly, contributing to inadequate attentionto disaster prevention. 10.65 Third, the leading institutions in SNPAD-CNPAD, DGPAD, the National Technical Committee, and the National Operation Committee at the national level; CREPADs at the departmental level; and COLPADs at the local level-are composed of representatives from existing institutions. The main responsibility of these representatives is not disaster prevention and management, and, apparently, they make their disaster responsibilities a priority only inthe event o f an actual disaster. The result is that key SNPAD institutions tend to be reactive rather thanproactive. 10.66 Funding. Historically, the FNC has provided over 90 percent o f funding for disaster prevention andmanagement. However, only 20 percent o fthis fkdinghasbeen devotedto prevention. Althoughthe original intention o f the framers o f the FNC was to create a reserve fund with a stable level o f funding, in practice, this reserve has been depleted and is only replenished in the event o f an actual disaster. This mode o f operation limits resources available for disaster prevention. An alternative to such reactive fundingis to rely oninsurance mechanisms. This strategy hasreceivedlimited attention, however. 10.67 Information. Colombian disaster law recognizes that sound, readily available information on disaster risks and on vulnerabilities to these risks is essential to promoting disaster prevention. However, implementation o f information-related mandates has been inadequate. By all accounts, pockets o f information on various risks and vulnerabilities exist, However, overall existing data are incomplete, poorly managed andmaintained, poorly integrated, andnot readily available. Inaddition, the disaster alert and monitoring systemis inadequate, as are efforts to disseminate informationto key institutions (such as COLPADs and CREPADs) and to the public at large. In sum, Colombia lacks the integrated national disaster informationsystem mandated by law. 10.68 Planning.A key mechanismfor promoting naturaldisaster prevention i s to mandate the inclusion o f natural disaster considerations into Colombia's extensive planning process. Municipalities must incorporate disaster contingencies into their development plans and LandUse Plans. Inaddition, national authorities are charged with developing disaster contingency plans for key economic sectors such as health care and transportation. Implementationo fthis strategy has been woefully incomplete, however. 10.69 Furthermore, the new Water Resources Management Law should ensure that the hydrography is maintained by CARS and AAUs, particularly in urban areas, and that the recurrence period o f the flow rate for floodprone areas i s increased ina cost-effective manner. Parallels between SNPAD and SINA 10.70 Inmany respects, SNPAD and the SINA are cut from the same cloth. Both were created within three years o f the 1991 Constitution, and both reflect an emphasis on inclusiveness, participation, and decentralization. More specifically, SNPAD and SINA each comprise a system o f far-flunginstitutions at the national, regional, and local levels. Each system is led by a set o f national-level institutions that set policy, coordinate andmonitor interactions o f local institutions, allocate national funds, generate, manage and disseminate scientific information, and attempt to raise public awareness about risks o f natural disasters. Furthermore, in each system, semiautonomous regional and local institutions with their own sources o f funding are principally responsible for policy implementation. In both systems, decentralization was implemented inpart as an effort to relieve the national government o f the financial andadministrativeburden associated with central control. 252 10.71 Given these common characteristics, it is not surprising that SNPAD and SINA also share a number of other qualities. Inboth systems, capacity andperformance vary markedly across autonomous regional and local institutions; coordination among the members o f the system needs improvement; and generation, management, and dissemination o f critical information need strengthening. Finally, in both systems, the potential strategies for addressing these challenges are similar: collection o f reliable indicators o f institutional performance is necessaryto improve coordination andperformance. Conclusions and Recommendations 10.72 Improve implementation of natural disaster prevention policies at the local and national levels. Several o f Colombia's COLPADs and CREPADs do an insufficient job o f implementing disaster prevention mandates such as developing contingency plans and incorporating disaster considerations into Land Use Plans. To address this weakness, reliable, detailed, up-to-date information on this problem is needed. Toward that end, the study recommended that DGPAD, supported by a research institute, consider conducting a study o f the performance o f CREPAD and COLPADs. Even more important, DGPAD could develop a permanent system o f performance indicators for CREPADs and COLPADS. Local disaster committees would be required to annually report the data needed to operationalize this system. It would be advisable that self-reports be subject to verification. 10.73 Once new data on performance are obtained, several measures might be undertaken to improve implementation o f natural disaster prevention policies at the local level. The DGPAD can publicly disclose reference indicators to raise public scrutiny and accountability. Allocations o f funds should conform to priorities established by a risk assessment. The DGPAD can continue to help buildcapacity in disaster prevention at CREPADs and COLPADs by developing instructional materials and offering training and technical assistance. Colombia's control organizations that are charged with ensuring that government entities perform their assigned functions can step up pressure on departments and municipalities to ensure that CREPADs and COLPADs are fulfilling their disaster prevention mandates. The executive branch can investigate legal requirements that municipalities and departments spend a certain percentage of their tax revenue on disaster prevention, and might consider promulgating regulations that enable it to withhold transfers o f national funds to departments and municipalities that are not fulfilling their obligations to implement natural disaster preventionpolicies. 10.74 Implementation o f natural disaster prevention policies could also be enhanced at the national level. As discussed, SNPAD comprises a large number and types o f institutions, a feature that makes communication and coordination difficult. One means o f mitigating this problem would be to more clearly define (through new laws, decrees, regulations, or directives) the specific roles o f each o f the national-level members o f SNPAD. Moreover, as with CREPADs and COLPADs, efforts could be made to develop data on how well national-level members o f SNPAD are performing their functions, to publicize these data, andto use them to create incentives for more effective disaster prevention. 10.75 Increased participation of CARS and coordination with the SNPAD in local disaster prevention. In principle, CARS should play a vital role in local disaster prevention and management because they are the principal repositories of knowledge about the natural, physical, geographical, climatological, and geological characteristics o f the areas under their jurisdiction. Furthermore, Law 99 o f 1993 assigns CARs the responsibilities for disaster prevention and risk assessment. To improve enforcement of natural disaster management policies there is a need to strengthen coordination between the CARs that are responsible for environmental enforcement and the SNPADs. In particular, increased efforts should be directed at prevention o f natural disasters, especially floods and landslides, which have been shown in this report to occur with highest frequency and to affect the greater number o f people. Preventive activities might focus on incorporation o f prevention considerations in Land Use Plans, improvements in urban drainage, resettlement o f populations from areas that are prone to natural 253 disasters, strengthening o f early alert and information systems, and strengthening o f regulations prohibiting human settlements in areas prone to the risk o f natural disasters. In addition, synergies between key members o f the SNPAD, particularly CARs and regional disaster committees, are underexploited. To mitigate the problem, the DGPAD, the MAVDT, andthe control organizations might strengthen enforcement o f mandates that CARs participate in disaster prevention, and might create stronger incentives for inclusion o f disaster considerations in environmental impact assessments and environmental licensing. 10.76 Implement an integrated disaster information system. Colombian lawmakers have long recognized that reliable, up-to-date, readily available data on disaster risks and vulnerabilities, strategies for mitigating these risks, and strategies for managing disasters are absolutely essential for disaster policies to be effective. Yet despite specific mandates, Colombia still lacks a well-functioning, integrated disaster informationsystem. This gap needs to be filled as quickly as possible. The system mightintegrate oceanographic, hydrological, climatological, and seismographic data systems and others deemed appropriate. Data systems most relevant to areas deemed highpriority by the risk assessment described above mightbe integrated first. To the extent possible, data in the system couldbe made available on the Internet. Subcomponents o f the system could be made available as quickly as possible instead o f waiting for the entire system to be completed. Adequate resources and effort could be providedto ensure that the system is well managed and maintained. Protocols might be developed to ensure the quality and standardization o f data collection. Finally, user-friendly guidance documents on the interpretation, use andapplication o fthe data mightbemade available. 10.77 Comparative risk assessments. Although SNPAD has developed detailed information on various disaster risks, only limited efforts have been made to compare different types o f risks interms o f their humanandeconomic impacts. Given that resources available for disaster prevention are quite scarce, such comparative risk assessment is urgently needed in order to ensure that investments in disaster prevention have the greatest possible impact. Risk assessments are needed at the national, regional, and local levels. The DGPAD can periodically perform national risk assessments, and CREPAD and COLPAD can periodically perform similar assessments o f the disaster risks in their territory. The DGPAD, departments, and municipalities should be required to use such comparative risk assessmentto guide their allocations o f financial, human, and technical resources. The DGPAD can take a number o f specific steps to make these requirements feasible: it might improve data collection and management; it might develop a standard methodology for comparative risk assessments that is practical, given the capacity for data collection and analysis that will prevail among CREPADs andCOLPADs inthe medium term; it might provide technical assistance and training in comparative risk assessment by, among other things, developing user-friendly training manuals and holding workshops; and it might certify third parties to assist CREPADs andCOLPADs incarrying out riskassessments. 10.78 Strengthen the disaster monitoring and alert systems. Efforts to integrate and strengthen disaster alert and monitoring systems, including those for seismic activity, volcanoes, flooding, and tsunamis, might be expedited. The comparative risk assessment discussed above should be used to establish priorities for this project. Adequate resources and effort could be provided to ensure that the system is well managed andmaintained. 10.79 Funding for disaster prevention. Lack o f funding for disaster prevention at the national and local levels is an important barrier to adequate prevention. At the national level, it is critical that the DGPAD and other national-level key entities be assured a reliable source o f non-emergency funding to support its disaster prevention efforts. Options for achieving this goal include: reinstating direct allocations to the DGPAD from the national budget, possibly entailing repositioning the.DGPAD within the national-level bureaucracy; changing the operating guidelines of the FNC to ensure that it provides sufficient funding for prevention activities; mandating that the various members o f SNPAD's national- 254 level entities, such as ministries, and national services guarantee funding for the participation o f their representatives in the SNPAD; and encouraging the DGPAD to make better use o f the National Royalty Fund(FondoNacional de Regalias, FNR), internationalsources, andother sources of funding. Ifneeded, the regulations governing the FNR's allocation o f funds could be amended to facilitate funding for disaster preventionactivities. 10.80 At the local level, CREPADs and COLPADs also must have the resources they need to meet regularly-that is, in non-emergency situations-and to undertake disaster prevention. Measures that mightadvance this goal include: encouraging the DGPAD, CREPADs, andCOLPADsto makebetter use o f the FNR, international sources, and other sources o f funding-the DGPADcould provide guidance to CREPADs and COLPADs on how to raise funds for prevention activities; and directing or encouraging the institutions comprising CREPADs and COLPADs to guarantee fundingfor the participation of their representatives indisaster committees. 10.8 1 Investigate better use of insurance to provide disaster management financing. Colombia's use o f insurance and other market instruments to finance disaster management i s incipient. The DGPAD might investigate the feasibility of makingbetter use of such instruments at both the local and national levels. 10.82 Develop a prioritized agenda for scientific research on disaster risks and vulnerabilities, and promote priority research areas. The integrated disaster information system needs to be supported by solid scientific information. To ensure that requisite data are generated, the DGPAD, inconsultation with relevant scientific institutions, might undertake a study to identify gaps inandpriorities for scientific research on disaster risks and vulnerabilities. The results from this study should be combined with those from the comparative risk assessmentto develop a prioritized agenda for research. To promote the items on this agenda, targeted funding can be made available through existing funding channels or new ones if these are deemed inadequate. In addition, the National System o f Science and Technology (Sistema Nacional de Ciencia y Tecnologia, SNCyT) can be better integrated into the SNPAD. Finally, lines o f communication betweenuniversities and other SNPAD intuitions can be strengthened. 10.83 Sectoral contingency planning. The DGPAD might commission a study o f progress on sectoral contingency planning anduse the results incombination with those from the comparative risk assessment discussed above to develop a prioritized agenda for developing and strengthening sectoral disaster contingency plans. It could also ensure that sufficient resources are made available, and sufficient incentives are provided so that planninginkey sectors is expedited. 10.84 Create stronger incentives for enforcing construction codes. The DGPAD should explore ways to strengthen enforcement o f disaster prevention provisions inconstruction codes. 10.85 Raise public awareness about disaster prevention and management. Raising public awareness o f disaster prevention will not only advance prevention directly. It can also generate the political will to pressure SNPAD to reduce vulnerability to natural disasters. Tools for achieving this goal include mass media campaigns and ensuring that disaster prevention and management are included in educational curricula. 255 Table 10.12: Summary of Recommendations for Strengthening Preventionof Natural Disasters Priority shori (S), medium (w, Recommendation and long term (L) Stakeholders ~ . Improve Implementation of Natural Disaster PreventionPolicies at the Local and NationalLevels .....I.I" .. ..I...._I. Local disaster Annually report the data neededto operationalize the system o f committees, performance indicators for disaster prevention. S DGPAD, MAVDT, CARS, AAUS, IDEAM MAVDT, Buildcapacity indisaster preventionbydeveloping instructional CREPADs, materials and offering training andtechnical assistance. S COLPADS, CARS, AAUs, IDEAM Increase enforcement of regulations for departments and Contraloria, municipalities to ensure that disaster preventionmandates are S Procuraduria; fulfilled. MAVDT,DGAP, CARs Establishregulatory mandates that municipalities anddepartments Congress, MHCP, spend a percentage of their tax revenues on disaster prevention. S MAVDT Promulgate regulations that allow the executive branchto withhold transfers o f national funds to departments and Congress, MAVDT, municipalities that are not fulfilling their obligationsto implement S MHCP natural disaster preventionpolicies. Clarify the specific roles o f eachnational-level member o fthe SNPAD. S Congress, DNP Develop data on performance o fnational-level SNPAD members and make it public. S-M MAVDT ......... .- ....... ......... -......._. ~.I-." .........-" -." " ~ .Coordination between CARs and SNPAD ._ . ........... .... ~ ~ Increase efforts innatural disaster prevention, especially floods and landslides, through activities that focus on incorporation o f disaster prevention inLandUse Plans, urbandrainage improvements, resettlement o fpopulations from areas prone to S Congress, MAVDT, natural disasters, strengthening early warning and information DNP systems, and strengthening regulations prohibiting human settlements inareas prone to risks o fnatural disasters. DGPAD,MAVDT Strengthen the role o fCARs indisaster prevention. S Contraloria, Procuraduria Create incentives for inclusion o f disaster considerations in S environmentalimpact assessmentsandenvironmental licensing. Congress, MAVDT Completionof....an Integrated Disaster Information System .. ". .. ................................................................ _ ...................... Complete an integrated disaster information system. M-L MAVDT, CARs, DGPAD, IDEAM 256 Priority short (S). medium(w, Recommendation and long term (L) Stakeholders . . ComparativeRiskAssessments __..__-____ ............ ..... MAVDT,DGPAD, Periodically conduct risk assessmentsat regional and local levels. S-M CREPAD, COLPAD, CARS Require the use o f comparative riskassessmentto guide allocations o f financial, human, andtechnical resourcesby: Improveddatacollection and management Development of standardmethodology for comparative risk assessments DGPAD, MAVDT, Providingtechnical assistance andtraining incomparative risk L CARS assessmentby developing user-friendly training manualsand holding workshops Certifying thirdparties to assist CREPADs and COLPADs in conducting risk assessments. . .- Integrate and Strengthen Disaster Monitoring andAlert Systems ".----.",".""- Expedite integration and strengtheningo f disaster alert and monitoring systems (seismic activity, volcanoes, floods, and S MAVDT,DGPAD, tsunamis). IDEAM Establish priorities for disaster monitoring andalert systems based S MAVDT, DGPAD, on comparative risk assessment. IDEAM Provide adequate funding for managementandmaintenanceof S MHCP system. ~- _ _ ........... ._........ I.-___.- ~ ......._......." .... Enhance Fundingfor Disaster Prevention ................. ........... ........... .. ~ ~ ~ ~ Enhancefunding for disasterprevention by: S Congress, MHCP, e Changing operating guidelines o f the FNC to ensure that it DNP, MAVDT provides sufficient funding for prevention activities e Encouraginguse ofFondo Nacional de Regalias (FNR), international sources, and other sources o ffunding for disaster prevention. ._ " ................... Expedite Sectoral Contingency Planning - .......... ~ ~ Undertake comparative risk assessmentto develop prioritized S-M MAVDT,DGPP agenda for developing and strengthening sectoral disaster contingency plans. 257 Part 3 Toward Sustainable Managementof a Rich Endowmentof Natural Resources CONTENTS Part 3: Toward SustainableManagementof a Rich Endowmentof NaturalResources Chapter 11 Water Managementina Water-RichCountry . ................................................. 263 Introduction....................................................................................................................................... 263 MainActors inWater ResourcesManagementPolicy Design......................................................... Water Quantity .................................................................................................................................. 264 265 Analysis of Water Resources ManagementPolicy Design 266 EffectivenessofPolicy Implementation ........................................................................................... ............................................................... 267 WatershedAdministration andManagement .................................................................................... 272 Degradation of Water Bodies 272 PolicyDesign .................................................................................................................................... ............................................................................................................ 273 Policy Implementation ...................................................................................................................... 273 Water PollutionControl .................................................................................................................... 274 The Caseo fBogoti's WastewaterTreatment Plant 280 Cartagena .......................................................................................................................................... .......................................................................... 280 Conclusions ....................................................................................................................................... 281 Recommendations ............................................................................................................................. 283 Chapter12 LandDegradationandDeforestation . ................................................................ 287 Introduction ....................................................................................................................................... 287 SoilErosion and Salinization: Magnitude andDimensions of the Problem 288 Soil Erosion ....................................................................................................................................... ..................................... 288 Soil Erosion andSalinization: Policy Design ................................................................................... 296 Soil Erosion andSalinization: Policy Implementation 297 Forests ................................................................................................................................................ ..................................................................... 300 ConclusionsandRecommendations ................................................................................................. 310 Chapter 13 BiodiversityLoss andOtherGlobalEnvironmentalProblems . ....................... 313 Introduction ....................................................................................................................................... 313 Biodiversity ....................................................................................................................................... 314 TheNationalProtectedAreas System ............................................................................................... 316 The Policy for SocialParticipation inBiodiversity Conservation 319 ClimateChange ................................................................................................................................. .................................................... 328 Ozone Depletion ............................................................................................................................... 331 Conclusions andRecommendations ................................................................................................. 332 Chapter 14 ConclusionsandRecommendations . ................................................................... 335 Tackling Environmental Priorities .................................................................................................... 339 References ................................................................................................................................... 345 261 Tables 11.1:Main SourcesandDemandsfor Water inthe BogotiSavannah ................................................ 269 11.2:Institutional Actors inthe Water Sectorfor the Bogoth Savannah ............................................. 270 11.3: NewWater Concessions by Sector. 1998-2002 11.4: Daily BODProductionby Sector ............................................................................................ I.272 ........................................................................ 276 11.5: Efficiency of Organic LoadRemoval in40 WastewaterTreatment Plants 11.6: EstimatedCosts of RequiredAqueducts and Sewers inUrbanAreas. 2001-10 ....................... ............................... 278 279 11.8: Recommendationsto Improve Water ResourcesManagement................................................. 11.7: Investment inWastewaterTreatment Systems. 1998-2001 ...................................................... 279 12.1: Highor Very HighSoil Erosion. by Department...................................................................... 284 12.2: Soil ErosioninColombia by Level of Severity......................................................................... 289 289 12.3: PrincipalRegions Affectedby HighandVery HighErosion 289 12.4: Soil Erosionin Colombiaby Level of Severity ......................................................................... ................................................... 290 12.5: Change inHighandVery HighErosion, 1988-2004 ................................................................ 290 12.7: Highor Moderate Soil Salinity, by Region ............................................................................... 292 12.8: Salinization inThree Key GeographicAreas 292 12.9: Salinization inthe Cauca Valley ............................................................................................... ............................................................................ 292 12.11:EstimatedErosion Costs for Three Department ...................................................................... 293 12.10: Salinization inSelectedAreas ofthe Bogotb Savannah .......................................................... 293 12.12: Most Suitable LandUse andActual LandUse 294 12.13: Suitable LandUse andLandUse Conflicts ............................................................................. ....................................................................... 294 12.14. LandUse andIrrigatedAreas inColombia, 1980-2001 (thousand hectares) ......................... 295 12.15: Causes ofDeforestation inColombia ...................................................................................... 295 12.16: CAR InvestmentsinLandQuality, 1995-2000 (thousandpesos) .......................................... 298 12.17: CARSInvestmentinLandQuality (thousandpesos ................................................................ 299 12.18: Soil DegradationRisk comparedto CAR InvestmentinSoil Conservation 301 12.19: LandUse PlanningandSoil Zoning by CAR .......................................................................... ........................... 302 12.20: Forest Cover ............................................................................................................................ 303 12.21: RegressionAnalysis ofForest Cover (hectares) ..................................................................... 304 12.22: Changes inGreenCover inColombia, 1986-94 and 1994-2001 ........................................... 309 12.23 Protective ReforestationinColombia, 1991-2002 309 12.24: Recommendations ................................................................................................................... ................................................................... 311 13.1:The NationalProtectedAreas System ....................................................................................... 316 13.2: Colombia's GHGEmissionsby Gas and Sector, 1994 ............................................................. 13.3: Recommendationsto ControlBiodiversity LossandOther Global Environmental Problems 334 14.1:MainPolicy Options ofthe Report ............................................................................................ .328 343 Figures 11.1:Internal FreshwaterResourcesPer Capita (cubic meters) ......................................................... 263 12.1: FertilizerConsumption (100 gr./ha arable land) 295 12.2: CAR Investment inLandIssues ................................................................................................ ....................................................................... 299 13.1:NationalProtectedAreas (percent of land ................................................................................. 317 13.2: Total CO1EmissionsinColombiaComparedwith Other Countries ........................................ 328 Boxes 11.1.Case Study ofthe Allocation ofWater Resources intheBogotiSavannah ............................. 268 262 CHAPTER 11 WATER MANAGEMENT IN A WATER-RICHCOUNTRY Colombia is endowed with abundant water resources. Responsibilitiesfor water policy design and implementation are distributed between the Ministry of Environment, Housing and Regional Development (MAVDT) and local authorities, but due to the abundance of water, water allocation regulations have not been modiJed since 1978. The current legal and institutional framework does notfacilitate access to water by small water users or vulnerable groups such as indigenouspeoples andAfro-Colombian communities.Information on groundwater is scarce, but the resource is used ineficiently, and there is overexploitation in some areas. Themost important sources of water pollution are hazardoussubstances, including toxins andpathogens. The water pollution control regulations and the effluents charge system address only organic matter and suspended solids discharged from point sources to superjkial waters, and thus need to be broadened. Introduction 11.1 Colombia is endowed with abundant water reso~rces.'~~has a national average freshwater It supply of more than 2,100 cubic kilometers, equivalent to a supply o f about 50,000 cubic meters per capita, a figure that is several orders o f magnitude larger than that of other Latin American countries such as Mexico and Argentina. Figure 11.1 compares the per capita availability o f freshwater among these countries, highlightingthe wealth o f Colombia's water resources. There exist considerable differences in regional andseasonal flow variations andin environmental vulnerability among river basins. Figure11.1:InternalFreshwater ResourcesPer Capita(cubic meters) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 I Colombia Brazil Argentina MCxico Source: World Bank (2005a). 13'Ernest0 Sinchez-Triana, Peter Brandriss, and Yewande Awe authored this chapter, which draws on reports prepared by Enriquez (2004); Colorado State University (2004); Universidad de Los Andes (2004); and Blachan and Morgenstern (2005). 263 11.2 Inthe past two decadesthe agricultural zones of a few river basins have been affectedby water deficits. The Institute o f Hydrology, Meteorology and Environmental Studies (Instituto de Hidrologia, Meteorologia y Estudios Ambientales, IDEAM) estimates that by 2030, if watersheds are mismanaged, vulnerability to surface water shortages may pose a significant problem in the Andes and Caribbean regions o fthe country. 11.3 There are over 2.5 million hectares o f wetlands and almost 2 million hectares o f floodplains in Colombia. They serve an important role in recharging and discharging aquifers, controlling floods, retaining nutrients andsediments, filtering contaminants, producingbiomass, maintaining fauna andflora, stabilizing coastlines and microclimates, facilitating aquatic transport, and providing recreation and tourist attractions. They are a vital element in drinking water production, agriculture, fisheries and other biologicalresources, forests, and wildlife. 11.4 These environmental benefits have diminished with time due to years o f poor management o f the wetlands, which have been affected by problems such as draining o f marshes and contamination. In addition, construction o f infrastructure, and effluents from agriculture, fishing, and domestic sources, have contributed to altering important wetland ecosystems, includingthe Citnaga Grande de SantaMarta, the Zapatosa and Teca Systems, the CiBnaga Virgen, Tota Lake, and the small lakes o f Cocha and Fdquene. At the same time, Colombia has achieved considerable progress with respect to restoring its wetland ecosystems, as shown in CiCnaga Grande de Santa Marta and the Juan Amarillo and Salitre wetlands. 11.5 Water pollution is another important problem that affects Colombia's water resources and limits their use for water supply and recreation, and their ecological benefits. Many important rivers such as BogotA, Cali, Pasto, Pamplonita, Combeima, and 0th are highly contaminated as a result o f direct discharge o f untreated effluents, primarily from industrial centers. To address the problem o f water pollution, wastewater treatment plants have beenconstructed incities such as MedellinandBucaramanga. 11.6 This chapter addresses the issues o f allocation o f water quantity and water pollution control, discusses the effectiveness o f the policy design for water allocation and o f the design and implementation o f water pollution controlp~licy,'~'anddraws a series o f conclusions. Water Quantity 11.7 There are five first-order watersheds in Colombia-Caribe, Magdalena-Cauca, Orinoco, Amazonas, andPacifico. A recent inventory o fwatersheds identifiednearly 27,000 watersheds larger than 10 square kilometers (km') andmore than 700,000 smaller than 10km2(IDEAM2004a). Inthe past two decades several watersheds have been affected by water deficits, includingthe Bogota River (Department o f Cundinamarca), the Cesar and Ariguani Rivers (Department o f Cesar), the Zulia River (Norte de Santander), the Tapias andRancheria Rivers (Guajira), the Coello-Totare River system (Tolima), andthe Palo-Juanchito River system (Valle del Cauca) (Mejia, Millan, andPerry 1985, IDEAM, 2004). 11.8 According to the IDEAM, water demand in 2003 was 7,435 million cubic meters (IDEAM 2004b). O f this amount, 54.5 percent was for agriculture, 28.8 percent for householduse, 12.7 percent for industry, 3.1 percent for livestock, and0.9 percent for the services sector. The municipalities with greatest demand were those with substantial rice production: Espinal, Ambalema, andLtrida inthe Department o f Tolima. It is estimated that 14 watersheds currently have very highvulnerability to water shortages, and that by 2030 the situation will worsen in the Andes and the Caribbean regions due to inadequate `39 Water quality for humanconsumptionis discussedinChapter 6. This chapterdiscusses the problemsofpollution o fsurface and groundwater pollution, which are not relatedto the water-relatedillnesses prevalentinColombia. 264 watershed planningand management, diminishing availability due to contamination, rising demand, and climate change impacts (IDEAM2004b). 11.9 Thirty-one percent o f Colombia's freshwater is contained in aquifers, making groundwater an important potential supply source. According to the 2004 IDEAMreport, 40 percent o f municipalities rely exclusively on groundwater for their drinkingwater. Althoughthere i s a lack o f systematic informationon groundwater, in general it is used inefficiently, and in a few areas it is overexploited, including in the Bogotb Savannah, the Guajira, andC6rdoba. MainActors inWater ResourcesManagement Policy Design 11.10 The main entities responsible for water resources management are regional authorities, including departments, municipalities, Autonomous Regional Corporations (CorporacionesAutdnomas Regionales, CARs), and Urban Environmental Authorities (Autoridades Ambientales Urbanas, AAUs), which can pass regulations that are more restrictive thanthose requiredunder national law, but not less.'40 11.11 The basic legal structure for water regulation is established in Decree-Law 2811 (1974) which created the National Code for Renewable Natural Resources and Environmental Protection (Cddigo Nacional de Recursos Naturales y de Proteccidn a1 Medio Ambiente, CNRN), and which remained the main environmental law for many years. Part I11o f the code governs issues related to water. Specific regulations are defined and implemented through subsequent decrees. According to the CNRN, virtually all bodies o f water belong.to the public domain. Therefore, water i s considered private property only when it originates and terminates on the same piece o f private property. In this context, companies and individuals can obtain rightsto use surface and groundwater only by law or by concession. When ground or surface waters are indanger o f depletion or pollution, pending concessions inthat basin or zone can be suspendedandexisting concessions can be circumscribed. 11.12 Decree 1541, approved in 1978, established regulations related to ownership anduse o f all water resources, including some water quantity provisions, and established the framework for the national system o f water concessions. The decree states that all water users must hold water concessions issued by the National Institute o f Renewable Natural Resources (Instituto Nacional de 10s Recursos Naturales Renovables,INDERENA).This authority was later transferred to the CARS and AAUs. 11.13 Law 99 o f 1993 established the Ministryo f Environment (Ministerio del Medio Ambiente, MMA) and assigned to it some responsibilities relevant to water management. However, the law didnot modify regulations for the water sector or management o f water resources. Law 99 also increased the number o f CARs and extended and redefined their purview by giving them principal responsibility for monitoring andenforcingwater regulations, includingdischarge standardsandfees. Italso established AAUs incities with populations greater than 1millionandgave them responsibilities analogous to those o fthe CARS. 11.14 The Ministry o f Environment became the Ministry o f Environment, Housing and Regional Development (MAVDT) in 2003, and is the supreme regulatory authority for water resources. Its responsibilities include formulating, managing, and coordinating policies, regulations, and programs on drinking water, water resources management, wastewater discharges, and sanitation., In collaboration with the Ministry o f ForeignAffairs, it is also responsible for international cooperation on water-related issues. According to MAVDT (2006:9), "the Constitutionand Law 99 of 1993 establish that the definition, design, and issuance ofnationalwater resourcespolicy are the exclusiveresponsibility ofthe Ministry o f Environment, Housing, andTerritorial Development." 265 11.15 The CARS and AAUs are responsible for monitoring and enforcing national water policies, granting concessions for water rights, and reviewing environmental impact assessments. Departmental and municipal governments help the CARs monitor and enforce water pollution regulations and develop sanitation and wastewater treatment infrastructure. As owners o f wastewater treatment plants, municipalities must comply with the discharge criteria established by law. Analysis of Water ResourcesManagement Policy Design 11.16 According to the CNRN and Decree 1541 of 1978, water should be allocated according to the following order o f decreasing priority: human consumption, preservation o f fauna and flora, agriculture, animal husbandry, recreation, industry, andtransportation. The CNRN does not take into account that the economic value o f water, social preferences, and water allocation priorities can vary substantially from one regionto another. 11.17 Decree 1541 o f 1978 regulates the procedures for obtaining water permits and their associated rights and conditions. According to this regulation, rights to divert surface water or to draw it from aquifers are granted by the local environmental authorities through water concessions. Obtaining a water concession could take several years, largely due to the cumbersome nature o f the procedures established inDecree 1541 (Amado 2004). Inrural areas and most municipalities water concessions are granted by the CARs. However, inthe largest cities-Bogoth, Medellin, Cali, andBarranquilla-they are granted by the AAUs. These can be granted for up to 10years,141andmay be transferred to another beneficiary only ifauthorizedbytheCARorAAU,andwithoutchangestotheoriginalconditionsoftheconcession. 11.18 Because the CNRN and Decree 1541 do not spell out how to apply in practice the legally determined order o f priorities for water use, government officials responsible for water allocation are left to make their own interpretations (Amado and Niiio 2004). When users in different sectors demand the same water resource, the allocation among them ultimately becomes a discretionary decision o f the responsible government official. Often the most powerful local stakeholders drive local water policy or simply usethe resource as they see fit, regardless o fits opportunity cost. 11.19 In addition, Decrees 2857 of 1981, 1933 of 1994, and 1729 of 2002 mandate CARs to create Watershed Administration and Management Plans (Planes de Ordenamientosy Manejos de Cuencas Hidrogrujkas, POMCAs). These plans must include provisions regarding land use zoning, development o f water resources infrastructure, allocation o f water resources, water pollution control, and conservation o fwater bodies. 11.20 Some CARs charge fees for water use based on the legal authority of Article 159 of the CNRN andsubsequentlaws and decrees. Since these legalinstruments do notprovide specific criteria, the CARs decide who to charge andhow to set the fees, so they are not consistent across the country. For example, since 1999 the Cundinamarca CAR has charged Acueducto de Bogoth (EEAB) and some small agricultural irrigation systems o f the region for using water (Amado 2004), but did not charge the beneficiaries o f the L aRamada IrrigationDistrict, which was under the administration o fthe CAR. 11.21 Water fees are associated to socioeconomic conditions andwater availability. Inthe Municipality of Subachoque the water fee for irrigation purposes was C$12 per cubic meter, while the fee paid by EEAB varied between C$72 for water taken from the Bogoth River to C$127 for water taken from the Teusach River (Niiio 2004), which represents between 10and 18 percent o fthe price o f drinkingwater. 14' Incases ofpublic interest such as aqueducts or public infrastructure, concessions couldbe granted for up to 50 years. 266 11.22 In2003 the Cundinamarca CAR collected about US$5.2 million inwater fees, about 83 percent o f which was paid by EEAB alone. EEAB sued the CAR to recover all its payments related to water fees, and challenged some of the CAR'S decisions related to water allocation (Nifio 2004). UntilDecember 2003, based on Resolution 259 o f 1997, the Environmental Administration Department (Departamento Administrativo del Medio Ambiente, DAMA) charged a fee for the use o f groundwater within the city limits.Like the water fees charged by CAR, this fee hadits legal origin inthe CNRN, andvariedbetween C$148 and C$305, depending on the depth o f the water table.'42Water fees collected by DAMA in 2003 amounted to US$700,000.'43 11.23 In 2003 the Colombian Farmers Society (Sociedad de Agricultores de Colombia) sued over the water fees that some CARs had been charging since 1984 based on Articles 159 and 160 o fthe CNRN. In December 2003, the Constitutional Court declared that those articles o f the CNRN had been replaced by Article 43 o f Law 99 o f 1993, and that therefore the water fees could no longer be charged untilspecific regulations based on Law 99 were approved. 11.24 During 2002 and 2003 the MMA held a series o f meetings in which government and industry stakeholders discussed proposals for new regulations to implement Article 42 o f Law 99 on water fees. The meetings produced feedback and proposals from representatives o f the mining and manufacturing industries, aquaculture, water utilities, hydropower, petroleum, agriculture, CARS, and the National Parks Unit (MAVDT 2002), but did not include participation by civil society groups, communities, and nongovernmental organizations (NGOs). Based on the proposals made by the participating stakeholders, the MMA drafted and issued new regulations through Decree 155 of 2003 and,Resolution 240 of 2004. Quantitative studies o f the social value o f water were not taken into account by the MMA, and the new fees were set so low that the CARS were unconvinced that it was financially justifiable to even collect them (Alvarez 2004). 11.25 According to the new regulations, the minimumprice for a cubic meter o f water inColombia was set at C$OS andthe maximumprice was set at C$3.5, less than 3 percent o f what the Cundinamarca CAR had been charging for water from the Teusaci River and about 1.5 percent o f what DAMA had been charging for groundwater. This new fee i s less than 1 percent o f the marginal value o f water for the industrial sector o f Colombia (Cruz, Uribe, and Coronado 2003), and between 1.5 and 6.5 percent o f the marginal contribution o f water to production o f potatoes and peas in one municipality o f the Bogoti Savannah(Ersulien 2003). Effectiveness of Policy Implementation 11.26 The case study o fthe allocation o fwater resources inthe BogotiSavannahpresentedinBox 11.1 illustrates the effectiveness o f the implementationofthe water resources management policy inone o fthe most vulnerable watersheds inthe country. While this is by far the largest population affectedby limited water supply, and is not typical o fmost areaswhere water quantity is not an immediate concern, the same institutional dynamics are at work throughout the country: for all water resources, small farmers do not have access to the allocation o fwater rights, which go to the big, powerfulusers, andthis calls for a major modernization effort. 14' The fee decreased as the depth of the resource increased. This i s related to the increasing availability of groundwater with increasingdepth, andwith the higher risk of groundwaterpollutioncaused by extraction at lower depths. 143 Informationprovidedby DAMAto Universidadde LosAndes researchers. 267 Box 11.1: Case Study of the Allocation of Water Resourcesinthe Bogota Savannah This casestudy* analyzesthe allocation ofwater resourcesamongdifferent stakeholders inthe BogothSavannah, and the corresponding policy and institutional implications. While the government was able to prevent water scarcity for large users-primarily through a series of supply-side engineering solutions-in general current institutions and regulations do not respondto the realities and needs of small water users such as farmers, and cannot guarantee them equitable access to water, protection of their formal water concessions, participation in decision making, or access to mechanisms for resolving conflicts. The Watershed. The Bogota Savannah covers 4,200 square kilometers on a plateau 2,560 meters above sea level in the Andes. The main waterway in the savannah is the Bogoth River, which provides water for irrigation and domestic consumption, and is usedfor electricity generation as it leaves the high savannahand descends toward the lowlands o f the Magdalena watershed. The savannah is the most industrialized and densely populated region o f Colombia, generating27 percent o f gross national product, including 72 percent o f industrial output. The city o f Bogoth has a population o f about 6.8 million (roughly 15 percent o f the national total), and is growing at more than 2 percent per year (DANE 2004, 2005). The other 19 municipalities in the Savannah have a combined population of nearly 900,000, and their industrial production is growing at a rate of 4.4 percent peryear, comparedto a rate of 2.3 percentper year for Bogothitself. The Savannahis also an important agricultural region. Itproduces 2.2 million liters of milk a day worth US$136 million per year, accounts for 85 percent of national flower production, with an annual value of US$600 million, and is the count~~'smain producer of fresh vegetables (CEDE 2003; Asocolflores 2005; DANE 2002). The average annualprecipitation inthe savannahvaries from as little as 700 millimeters (mm) insome areas to more than 1,900 mminthe municipalities withthe heaviestrainfall (SGC 1998; Rodriguez 2003). Water yields inthe BogothRiverwatershedvary between 10and25 liters per secondper square kilometer (L/s/km2).Water scarcity inruralareasofthe savannahismostsevereduring January, February, July, andAugust. There are two main aquifers in the Bogota savannah, the Acuifero de la Sabana (Savannah Aquifer) and the Acuifero Guadalupe(Guadalupe Aquifer). The SavannahAquifer water table lies at about 400 meters, yields about 5 liters per secondper well, and supplies nearly 80 percent o f the region's consumption o f groundwater. The GuadalupeAquifer lies between 800 metersand 1,300 meters and canyield 20 liters per secondperwell. Historical Perspective. By the late 1940s Bogoth officials were becoming concerned about possible water shortages anddecidedto buildan aqueduct andtreatmentplant inthe upper basin o fthe BogotaRiver(Rodriguez 1998). The new infrastructure, brought on line in 1959, gave the Acueducto de Bogoth (EEAB) the capacity to deliver anadditional 3 cubic metersper second (m3/s)of drinking water (eventually expandedto 6 m3/s). With the population of the Bogot6 Savannah at 1.4 million and growing, EEAB foresaw that water demandby 1970 could not be met solely with the resources available from the Bogoth River watershed. To meet the anticipateddemand, EEABbuiltthe Chingazasystemto divert water to the Bogot6 Savannahfiom severalrivers across the continental divide inthe upperreacheso fthe Orinoco river basin. This system beganoperationin 1985 and currently supplies 14 m3/s (Ingetec 2003). The two main sources of demand, besides domestic and commercial consumption handled by EEAB, were for generation o f hydroelectric power for the Empresa de Energia de Bogoth (Bogoth Energy Utility, EMGESA) and for agricultural use in the La Ramada irrigation district. EMGESA generateselectricity through a series o fpower plants on the lower Bogot6River, downstreamfrom the savannah. In 1967 the Energy Company built the Tomint! reservoir in the upper basin of the BogotA River to regulate water flow to the downstream power plants. The economy of the Bogot6 Savannah was critically dependenton this energyuntilthe mid-l990s, when anational electricity marketwas createdthat allowed energy to be transferred to Bogota from the Guavio hydroelectric complex (inaugurated in 1985) in the Orinoco watershed. 268 The La Ramadairrigation district covers 6,215 hectares on the west bank of the Bogoth River opposite Bogoth, and mainly serves dairy farms and vegetable growers. It was created in 1961 and is administered by the Cundinamarca CAR, which is responsible for allocating water among the irrigation district's members. La Ramadatakes 0.6 m3/sfrom the BogothRiver upstreamofthe convergencewith the ElSalitre River (CAR 1995). The flower industry is not included inthe irrigationdistrict sinceit mainly useswater from undergroundsources. Surface Water Balance. There is a complex system of water reservoirs, tunnels, gates, canals, aqueducts, and valves in the Bogota Savannahto allocate water among various major users. Figure 11.2presents a simplified version o f the main hydrologic structures o f the region. The flow o f water to different parts of the system and for different uses is controlled byreleasingwater from a series of reservoirs.The final outflow from the Bogoth Savannah is used to generate electricity along the lower watershed as the river descends toward the lower Magdalena Valley. Insome cases the water can be usedmore than once (for example, domestic consumption andhydropower generation), but some uses exclude reuse (irrigation). Table 11.1 summarizes information on surface and groundwater consumption in the Bogoti Savannah provided to Universidadde Los Andes researchersby the EEAB, the Cundinamarca CAR, and DAMA. The table shows that the largest water user in the region i s EEAB, and that there are significant gaps in the information available about water supply and use in the region, particularly regarding water consumption by small users. Information on groundwater and smaller surface water resources i s also incomplete. CAR information onthe hydrology o f small streams and creeks i s inadequate or nonexistent, and information on the number of water permits granted and the amount of water allocated by Cundinamarca CAR in the Bogota Savannahhas not beenconsolidated. Table 11.1: Main Sources and Demands for Water inthe Bogota Savannah Meanflow Uptake Source (m3/s) User (m3/s) Acueducto de Bogoth 1.1 Tunjuelito River (Bogota watershed) 4.4 Smallusers* unknown Mining unknown ......................................................................................................................................................................................................... ........ Acueducto de Bogota ** 4.5 BogotaRiver 9 LaRamadaIrrigationDistrict 0.6 Smallusers * upto 4.7 Guaitiquia, Chuza, and Frio 14 Acueducto de Bogota 11 Rivers (Orinoco watershed) ......... Other users .................................... ..................................... 0 ~ " " ~ Other tributaries ofthe Bogota unknown Smallusers* unknown River Municipalities Less than 1.5 Groundwater Large industry 0.14 inBogota unknown Smallindustries and services 0.02 Flower Industry 0.84 Groundwater inrural areas unknown Municipalities unknown Others unknown ***Agriculture, livestock, fisheries. Includes 0.6 m3sold by the AcueductodeBogotd to municipalities inthe BogotLSavannah. Sources: Information provided to Universidadde Los Andes researchers by EEAB, CAR, and D A W in written materials and interviews. 269 Interms o f groundwater, the Cundinamarca CAR estimates that there were about 3,500 wells inthe Bogoth Savannah in 1990 (the most recent year for which data are available) and that aquifer levels are falling between 0.36 meters and 1.97 meters per year due to overexploitation. In addition, CAR has detected traces o f pesticides insome groundwater sources. DAMA has aninventory o f306 active or potentially active wells inthe city o fBogoth. Itis estimated that large industrial users account for 85 percent o f the groundwater consumed inBogoth (DAMA 2002). The remaining 15 percent is allocated to small industries and services such as car washes. According to DAMA, the aquifer underneath the city is not overexploited, but it is contaminated with fecal coliform. The total demand for drinkingwater in the Bogota region has declined by 16 percent since 1998 due to the increaseo fwater tariffrates andan education campaign bythe EEAB(Molina 2002). Table 11.2: Institutional Actors inthe Water Sector for the Bogota Savannah Institution Functions Autonomous Regional 0 Allocates water among different users inthe Bogota Watershed Corporationo f Cundinamarca Manages and controls use o fthe region's natural resources (CAR) 0 Charges fees for water consumption 0 Grants environmental licenses andpermits for water use 0 Administers the L a Ramada irrigation district Department o fthe 0 Allocates underground water inthe urban area o fBogota Environment o fBogoth 0 Manages and controls use o fthe city's natural resources (DAM4 0 Charges fees for water consumption 0 Grants environmental licenses andpermits for use o fundergroundwater resources Water and Sewerage 0 Provides drinkingwater to Bogoth and 11municipalities inthe Bogota Company Bogota Savannah (ElAcueducto) 0 Administers the sewerage system o fBogota 0 Conserves ecosystems critical for water supply andregionalhydrological functions (pdramos,wetlands, andwatersheds) Floodprevention andcontrol inthe city o f Bogota Bogoth Energy Utility 0 Private company that generates andbuys energy, mainly for Bogothand its (EMGESA) neighboring municipalities Municipalities around Bogota Buyservicesandresources fromthe water andenergyutilities L a Ramada Irrigation District Uses water from Bogoth River, mainly for dairy production andgrowing vegetables Other ruralusers 0 Use water from surface andunderground sources for aquaculture, cattle ranching, recreation, etc. National Parks Unit andEl 0 Administer Chingaza NationalPark (site o fChuza reservoir) Acueducto 270 Table 11.2 summarizesthe current rolesofthe main institutional actorsthat arerelevantinthe processofwater allocation anduse inthe BogotlRiver watershed. Water allocationhas traditionally beenthe responsibility of the CundinamarcaCAR. In 1967the Boardof Directors of the CundinamarcaCAR createdthe Hydrological Committee of the Bogotl Savannah as an advisory and consultative group to coordinate decisions on water allocation among large users andonmanagementof the water storage and distribution system. The committee does not have alegalbasis incurrent nationallegislationandthe CAR still has sole decision-makingpower. The creationof the Hydrological Committee, at a time when there was not sufficient water and infrastructure available to satisfy the needs of large users inthe region (Rodriguez2003), illustrateshow institutions emerge when there is a social need for them. The solutions implementedreflect initiatives by local institutions to develop forward-looking strategiessupportedbytechnicalinformation.However, the Committeeonly included the three major water users. Communities, municipalities, small farmers, and other stakeholders were, and continueto be, excludedfrom the Committee. * This case study is largely drawnJLom a backgroundpaper preparedfor this report by the Universidadde Los Andes (CEDE 2003). 11.27 Although the CNRN made humanconsumption and ecosystem conservation the highest priorities for water allocation, neither the Code nor Decree 1541 created guidelines or procedures for balancing competing priorities and resolving conflicts. Therefore, government officials responsible for water allocation, mainly in the Cundinamarca CARS,were left to make their own interpretations and decisions (Amado andNSo 2004), with limitedopportunity for administrative or legalappeal. 11.28 The Bogotb Hydrological Committee has resolved many short-term water shortage issues, and reforms in the mid-1990s created a national electricity market. Perhaps the most important remaining function o f the Committee is to coordinate reservoir and water flow management to prevent flooding duringextreme rainfalls (Nifio 2004). 11.29 The Hydrological Committee has not traditionally dealt with the water needs o f small users in rural areas o f the Bogotb Savannah, which is the responsibility o f the CAR. While it is estimated that more than 70 percent o f small users do not hold water permits and there is no informationon their actual water consumption, occasionally the sum o f the permits held is greater than the available flow (Amado 2004). The low number o f permits andthe lack o f linkages between concessions and actual water supply could be due to the cumbersome procedures established by Decree 1541, centralization o f the concession process, insufficient human resources in the Cundinamarca CAR, limited enforcement and control capacity, andthe fact that water fees are only charged to legalusers (permit holders). 11.30 As a result o f the measures to address water supply concerns over the past 25 years, there i s no evidence that the industrial sector considers water availability, price, or quality to be limiting factors in their development and investment plans in the Bogot6 Savannah. However, small rural water users face scarcity every year during the dry months (January, February, July, August), particularly inthe center and the far north and south o f the Bogotb Savannah, where annual precipitation is less than 800 mm. Small users also lack the allocation mechanism and access tojudicial appeal enjoyed by large water users. 11.31 Findinglong-term solutions to the problems o f small water users has not beena priority for local, regional, or national environmental authorities, and information on water supply and demand in the region's smaller watersheds is generally nonexistent. Obtaining a legal water concession is a long, cumbersome, centralized, and costly process for small users at the local level (Camargo 2004), and there is no public participation in water allocation policy for small users. In addition, for small users, the current legal and institutional framework does not provide transparent and equitable access to water, 271 protection o f rights, or resolution o f disputes. Without a decentralized institution that can ensure efficient allocation, monitoring, and enforcement at the community level, water conflicts among farmers will remain common. WatershedAdministrationandManagement 11.32 Although CARS throughout Colombia are required by law to create Watershed Administration and Management Plans (POMCAs), it is difficult to evaluate the degree of compliance. Available information suggests that only a few watersheds have such plans, there is no clear rationale for which watersheds have plans, and there i s no effective monitoring or enforcement o f such plans. According to IDEAM, between 1998 and 2002, 21 o f the 33 CARs formulated 145 new POMCAs covering 20,000 square kilometers, or less than 2 percent o f the national territory. Forty-nine o f these plans were for watersheds that supply municipaldrinkingwater systems. 11.33 Of the 40,672 new water concessions reported to IDEAM for 1998-2002 by 30 o f the CARs, nearly 60 percent were for humanconsumption, 23 percent were for agriculture andlivestock, 2.4 percent for hydropower, 1.9 percent for industry, 1.6 percent for mining, and 11.8 percent for other sectors (Table 11.3). The great majority were in Antioquia and the Cauca Valley, which together granted about 60 percent o f the concessions; Cundinamarca accounted for another 12 percent. Since few parts o f the country face water shortages, this concentration likely reflects the level o f economic development and institutional capacity more than the need to promote rational water allocation or conservation in a particular area or sector. In any case, it is difficult to find the kindo f nationwide or region-specific date that could help assess the implementation andimpacts o f water concessions, or to incorporate lessons and experience from water concessions into effective planning, analysis, andpolicy formulation. Table 11.3: New Water Concessionsby Sector, 1998-2002 Sector Number of concessions Domestic 24,119 Agriculture and livestock 9,333 Other sectors 4,805 Hydroelectricgeneration 978 Industry 777 Mining 660 Total 40,672 Source: IDEAM(2004). DegradationofWater Bodies 11.34 Degradation of wetlands has led to reductions inthe environmental benefits they provide. These benefits have been reduced by poor management o f wetlands and lack o f knowledge about their function and services. Degradation o f water bodies, draining o f marshes, and contamination from industry, agriculture, fishing, and domestic sources have altered important wetland ecosystems. In the Colombian Pacific, which has the country's largest areas o f landcovered by mangroves, a net reduction o f 5 percent (nearly 14,000 hectares) o f mangrove coverage is estimated to have occurred between 1969 and 1996 (INVEMAR 2002). 11.35 It is estimated that yellow fin tuna accounts for 80 percent of the national fish capture, and for almost US$80 million in income generated in2005 (MAVDT 2005). Most fish captures originated from the Pacific coast. However, overfishing o f other marine species such as white, tiger, and red shrimp, 272 lobster, and queen conch continues to be a problem and has led to declines in captures. In addition, coastal water ecosystem interventions contribute to the observed decline. Furthermore, degradation o f water quality due to the discharge o f ballast and bilge water from ships, accidental petroleum and toxic substance spills, the dumpingo f domestic wastewater, andsediment transport from rivers andcanals such as the Dique have also contributed to the observed decline incaptures. Inthe Great Marsho f SantaMaria, fish captures decreasedfrom 8,000 tons in 1972to 1,800 tons in1989. 11.36 Duringthe 1960s, fish captures in the Magdalena-Cauca basin were estimated at about 100,000 tons per year, and decreased in the 1990s to almost 9,000 tons per year (Escobar 2004; Colorado State University 2004). The decrease o f fish capture in inlandareas, especially the Magdalena andCauca River basins, is due to a variety o f reasons including drainage o f wetlands and marshes, use o f inadequate fishing equipment, channel blockages, salinity changesinmangroveecosystems, andwater pollution. The main wetlands and rivers associated with fish production are located principally in the Caribbean region and inthe bottoms and highplains o fthe Orinoquia. Policy Design 11.37 The main tools provided in Colombia's policy to control degradation o f bodies o f water are the POMCAs, established by Decrees 2857 o f 1981, 1933 o f 1994, and 1729 of 2002, andthe environmental licensing process. To obtain a license, projects that have potentially negative environmental impacts are required to conduct an environmental impact assessment and hold a public hearing. Licenses specify the manner in which water users will control water degradation. It can be argued that the licensing process does not capture the degradation o f bodies o f water as a result o f non-project-related activities such as urban and rural runoff, urban expansion and encroachment, and unsustainable agricultural practices regarding the use o f fertilizers and pesticides. 11.38 At the national level, one o f the few political instruments aimed at conservation o f wetlands i s the Wetlands Convention (RAMSAR) ratified by the Colombian Congress. The objective o f the Convention is to promote the conservation and rational management o f wetlands. To this end, the government established the following RAMSAR areas: (a) 400,000 hectares of the Delta Estuarino o f the Magdalena River, CiCnaga Grande de Santa Marta in 1998, (b) 39,000 hectares o f the L a Cocha lagoon in 2001, (c) and 8,888 hectares in the delta o f the Baud6 River in 2004. In 2001, the MMA issued the National Interior Wetlands Guideline, which established a framework for the management of wetland ecosystems at the national, regional, and local levels. This guideline suggests generic approaches for the management of wetlands, andintroduces concepts such as the creation o f social criteria and community participation in wetland management. Policy Implementation 11.39 Several CARS have established POMCAs that include wetland restoration and conservation activities.'4 An example is the restoration o f urban wetlands inthe Bogoth metropolitan area. In 1900 there were over 50,000 hectares o f wetlands'45 in Bogoth. By 1998, wetlands had decreased to a mere 800 144 For instance: the joint effort by CARDIQUE and CRA for the "Environmental Management Plan for the wetlands o f ElTotumo, ElGuajaro andElJob0 inthe Canal del DiqueEcoregion;" and the Integrated Management Plan for the Wetlands o f the Mompox Area and the Sinu River Watershed," a joint effort o f five regional corporations (CVS, Corhtioquia, Corpomojana, Corpamag, and CSB) in 2002. Both initiatives were financed by the Inter-American Development Bank. 14' The RAMSAR Convention considers wetlands as "water reserves o f great economic, cultural, scientific and recreational value," and they are defined as "areas of marsh, fen, peat land or water, whether natural or artificial, permanentor temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marinewater the depth o fwhich at low tide does not exceedsix meters." 273 hectares (Rodriguez 2003). Among those 800 hectares, the Juan Amarillo wetland alone retains 40 percent o f the city's storm waters (EAAB 2003). Other environmental services provided by these wetlands include sediment retention; aquifer replenishment; nutrient recycling; and habitat provision for endemic, resident, andmigratory species. 11.40 Innovative approaches for the restoration of Bogoth's wetlands were implemented through the Bank-funded water and sewerage project. The objective o f the project was to reestablish the ecological and physical corridors of the most important ecosystems of the savannah. The project covered the San Rafael ecological park; the Molinos, Cbrdoba, Rionegro, and Salitre canals; the Cbrdoba, Juan Amarillo, andJaboque wetlands; andthe riparian zone of the Bogoti River. Through the project, public space was increased by the addition o f over 400 hectares o f green areas. In addition, 43 kilometers o f pedestrian paths and 37 kilometers o f bike paths were constructed, and 228 hectares o f wetlands were restored (EAAB 2003).'46 Two stand out: the Humedal de Juan Amarillo and the Paseo Rio Salitre, which the Chief Executive Officer o f the Bogoti Water Utility considers one o f the longest urban environmental corridors inLatin America (Alvarez 2004). 11.41 The CiknagaGrandede SantaMarta (CGSM) is locatedinthe delta of the MagdalenaRiver and is inhabited by 30,000 people whose main livelihood is fishing. During 1956-95 the area o f land covered by mangrove forests fell from 511 kmz to 225.4 kmz (MAVDT 2003). In 1995 the government implemented a project to reestablish water flows in the CGSM by opening the Torno, Almendro, and Alimentador, Clarin, Aguas Negras, and Renegado channels with a view to connect the MagdalenaRiver with the wetland. These efforts led to an increase o f 52.68 kmzinmangrove-covered areas during 1995- 2001. Furthermore, the implementation o f hydraulic works in the Clarin, Aguas Negras, and Renegado channels has lessened the pace o f deterioration of the ecosystems, evident inreduced salinity o f marshes and recovery o f vegetation. Water PollutionControl 11.42 IDEAM(2004) has recognizedthat informationcollection'onandmanagement of ambient water quality in Colombia is insufficient. Although monitoring stations do exist for selected rivers and aquifers, coverage is limited and data collection andmanagement are not standardized. As a result, assessment o f the state o f water quality at a national level is incomplete. There i s evidence o f water pollution in several rivers: Bogotb, Cali, Medellin, de Oro, Pasto, Pamplonita, Combeima, and 0th. The existence o f water pollution from toxic substances andpathogens is critically important indrinkingwater andfor water used inrecreation, biodiversity, andagriculture. Toxic andPathogenic Pollution 11.43 The discharge o f toxic substances, pathogens, and other hazardous discharges into bodies o f water is the main cause o f water pollution. Most toxic and hazardous pollutants come from agricultural and industrial discharges, which may have cumulative and persistent consequences. Hospital, livestock, and agroindustrial wastes contain bacteria, protozoa, and other pathogenic microorganisms, which represent severe health risks to anyone consuming the water directly or through agricultural products irrigated with it. Key causal factors ingroundwater pollution include agricultural runoff, septic tanks, and landfills. 11.44 The agricultural sector discharges large amounts o fpesticidepollutants. Eventhough problems o f nonpoint-source water pollution are generalized worldwide, preliminary estimates suggest that the application o f pesticides on the 1.2 million hectares dedicated to the eight most-consumed crops is about `46 Cfr. "Acueducto, aguay alcantarillado de Bogota. Transfomaci6n empresarial," Boleti'n de laEAAB. 274 9 to 13 kilograms per hectare per year, whereas the application o f fertilizers inthe 4.5 millionhectares o f the agricultural zone fluctuates between 230 and 290 kilograms per hectare per year (DNP 1995). These figures, which are two to three times greater than the amounts recommended by the manufacturers and used in other regions, suggest that in these areas the problems o f runoff pollution and agricultural percolation are critical. 11.45 Most o f the dumping o f toxic wastewater discharges in Colombia comes from the improper disposal o f solid waste and hospital waste and from runoff from fertilizers, pesticides, and industrial waste, particularly from petroleum refineries, the chemical industry, andleather tanneries. The inadequate disposal o f solid waste results in leachates with high concentrations o f toxic residues such as phenol, chromium, mercury, and lead. The case o f sanitary landfills in Bogota and Medellin is illustrative. In Bogoti's Doiia Juana landfill, high concentrations o f toxic compounds have been registered, such as phenol 3.91 mg/l, chromium 1.12 mg/l, mercury 0.004 mg/l, andlead 0.41 mg/l(DNP 1995). 11.46 The use o f polluting technologies inthe manufacturing industry, such as those traditionally used in tanneries, electroplating, metal smelting, palm oil extraction, distilleries, chlorine and soda ash production, oil refineries, and petrochemicalplants, or in slaughterhousesand freezers, promote the waste o f prime material and highproduction o f residual waste. The chemical, electroplating, paper processing, and tannery industries also dump toxic substances such as chrome, nickel, cadmium, lead, mercury, and organic chloride compoundwastes inuncontrolled conditions. 11.47 Crude oil spills from acts o f sabotage by terrorists have become another cause o f water pollution inthe country. The most affected ecosystems have been slow-moving bodies of water such as wetlands and low-flowing creeks. The areas damaged by these oil spills are located mainly inthe Araucana high plains area o f the Catatumbo River basin region, which is characterized by being very steep and rich in streams, ravines, and tributary rivers; the mid-valley and low-valley plains o f the Magdalena River (primarily inthe departments o f Santander, Cesar, and Sucre); and inthe departments o f Putumayo and Narifio, where the mountainous conditions havehindered efforts to controlthe oil spills effectively. 11.48 In the Catatumbo basin, as inmost cases, the spills have reached larger bodies of water such as the Sardinata, the Tarra, and the Catatumbo Rivers. The most difficult spills to control and manage have occurred inthe Magdalenaplain. The expansion o f crude oil has compromised as much as 1,000 hectares o f lentic water, nearly 40 kilometers o f less important rivers (such as the Simafia River), and some 150 kilometers o f canals and secondary or seasonal streams, in which groundwater contamination becomes more relevant thanthat o f surface water. 11.49 In the cities, inadequate management and disposal of substances used for the operation and maintenance o f vehicles also contributes to water contamination. By 1995, the major portion o f the 650 million barrels o f oil lubricants used annually for automobiles was dumped into sewers and bodies o f water without prior treatment or control. By 1990, the Cundinamarca CAR estimated that close to 250,000 barrels o f motor oil were dumped into the sewers o f the city o f Bogoti and ended up in the Bogota River. 11S O Organic material wastes from agricultural, livestock, and domestic and industrial sources that reduce or eliminate the dissolved oxygen in the streams negatively impact the aquatic life and water aesthetics. According to the Contraloria, there is no reliable analysis of water pollution at the national level (Contraloria 2002). Morillo and Carrasquilla (1994) estimated that the three largest contributors to biochemical oxygen demand (BOD) discharged into surface waters in Colombia were, in order o f importance: agricultural and livestock nonpoint sources, 84 percent; domestic wastewater from large urban centers such as Bogota, Medellin, Cali, Barranquilla, Manizales, and Cartagena, 10 percent; and industrial point sources, 6 percent (Table 11.4). 275 11.51 Among point sources, urban wastewater is the major source o f discharges with high BOD. According to IDEAM(2002a), in 1999, the total BOD discharged from point sources was 624,746 tons, of which 74 percent came from the domestic sector and 26 percent from industry. IDEAM (2002) identifies industrial centers o f Cali, Bogoth, Medellin, Manizales, Barranquilla, Cartagena, and Bucaramanga as the greatest contributors. Among industrial activities, Morillo and Carrasquilla (1994) identifiedthe production o f alcoholic andnonalcoholic beverages, industrial chemicals, andthe cardboard andpaper industryas key contributorsoforganic pollution. Governmental Agencies Responsiblefor Controlling theDegradation of Bodies of Water 11.52 The MMA is responsible (under Law 99 o f 1993) for defining policies for water resources management including the control o f wetland degradation. Law 99 also assigns the Ministry the task o f setting fishery quotas and total allowable catch from a fish stock. In addition, it assigns the CARs the function o f authorizing the use (including recreational use) o f renewable natural resources, and the practice o f activities that can affect the environment; concessions for water usage and sport fishing seasons, and the application o f corresponding sanctions. According to Law 99 o f 1993, the entities within the National Environmental System, responsible for implementing the policies previously defined by the national government, are the governmental environmental authorities (MAVDT 2006:10). 11.53 While the main water pollution problems in Colombia are associated with toxic substances, pathogens, and other hazardous substances, there are no policies that address these problems. Further, Colombia's water pollutionpolicy omits nonpoint discharges, which are significantly more damaging to the environment thanpoint discharges o forganic matter (BOD). However, a handfulofregulations establish the basic structure o fregulationof organic matter andsuspendedsolids. 11.54 Water quality regulations for BOD andTSS have three mainelements: a set ofquality standardsfor various beneficial uses, including human and domestic consumption, preservation o f flora and fauna, agriculture including irrigation, animal production, and recreation including swimming; a system o f registration and permitting, associated with a set o f discharge standards; and a system o f discharge fees. Decree 1594 o f 1984 and Law 09 o f 1979 contain the details o f standards and requirements regarding environmental quality, treatment o f wastewater, and compliance standards. CARs and AAUs are responsible for enforcing the discharge standards, and to do so, they can inspect discharging facilities at any time to sample their effluents andinspect their equipment. Table 11.4: Daily BODProduction by Sector Sector Tons Percent Agriculture andlivestock 7,100 84 Domesticwastewater 800 10 Industrialwastewater 520 6 TOTAL 8,420 100 Source: Carrasquilla, M.andMorillo, J. (1994). 11.55 Water pollution charges have beenused in Colombia at least since the late 1970s. The design of the fee system, established in the Natural Resources Code o f 1974 and developed by the CVC in 1978, has been changed several times by several decrees and laws.'47 As envisioned in Law 99 o f 1993, discharge fees were applied only to those discharges remaining after the discharge standards had been 14'Decree 1594of 1984, Law 99 of 1993, Decree 901 of 1997, Decree 3100 ofOctober of2003, andDecree 3440 of October of2004. 276 met. For example, for new facilities (established after Decree 1594 o f 1984) that achieved 80 percent BOD removal, the discharge fees applied only to the 20 percent BOD content o f their discharges. CARs are entitled to charge-generated revenues; to provide incentives for the application o f the charges, the national government determined that many o f the agencies' operational expenses, including staff compensation, couldbe financed only by charge revenues and a few other instruments. 11.56 Inaddition to the obstacles to expanding water supply and sewage services with participation o f the private sector covered with PSP (explained in Chapter 6), the charge design contains the following serious flaws with respect to ecological improvement goals: a The selection o f BOD and TSS as charge parameters, because these were associated with aesthetic characteristics and not with the most significant problems such as impacts to human health, ecosystem conservation, or beneficial uses o fbodies o f water, such as recreation; a Reliance on voluntary declarations to determine discharges o f pollutants, without the existence o f a systemto verify the accuracy o fthe declarations andpenalize false reporting; a The possibility o f revising environmental goals once they hadbeenmet, which reducedthe incentives to invest in pollution-abatement technologies. Experiences in other countries showed that polluters tend not to meet environmental goals because doing so would invite the setting o f more stringent goals. Instead, polluters tend to adopt a strategy o f reluctant compliance to increase the probability o f more lenient goals insubsequentperiods;'48 a Absence o f a quality-assurance mechanism to ensure the precision, sensitivity, and accuracy o f environmental monitoring, andtherefore lack o f a reliable system to assess progress. Agencies Responsiblefor the Design and Implementation of Water Pollution Control Regulations 11.57 Law 99 gave responsibility for the design and implementation o f environmental policy to the MAVDT, CARs, and AAUs, andmade the MAVDT the supreme regulatory authority for water pollution control. The MAVDT is responsible for both setting general policies and developing specific programs related to water. In conjunction with the Ministry o f Social Protection, it i s responsible for defining the acceptable quality standards and uses for water, and for developing a resource classification plan that includes existing uses, projections o f water use needs, quality simulation models, quality criteria, and discharge procedures. The Ministry o f Social Protection alone is in charge o f approving water treatment, storage, and transportation when the water is for human consumption. Law 99 also assigned CARs and AAUs responsibility for enforcing the water policies set at the national level. 11.58 The total national generation o f wastewater in urban centers is 67 cubic meters per second (Carrasquilla and Morillo 1994), the vast majority o f which is not treated. In addition, a significant percentage o f wastewater is not collected because many households are not covered by municipal sewer systems. Even when wastewater is collected it is generally not treated, and many o f the existing wastewater treatment plants operate inefficiently or not at all. 11.59 Approximately 75 percent o f the population living in urban areas in 2001 (31,339,130 inhabitants) had access to sewer systems. This implies that 7,803,000 people lackedaccess to this service. As of 1999, 16 percent o f Colombia's 1,089 municipalities had operating treatment plants (Contraloria 1999). The Ministryo f Development estimated that Colombia's treatment plants treat less than 1 percent of total urban wastewater. Inthe sample o f 40 municipal wastewater treatment plants in Table 11.5, 60 percent were not in compliance with Decree 1594 o f 1984 standards for the removal o f 80 percent o f BOD and65 percent o f TSS (Contraloria 1999). 14'As explained in Chapter 6, this had the implication that private investors had no means of knowing how the chargewould ultimately affect the utility's finances. 277 Table 11.5: Efficiencyof OrganicLoadRemovalin40 Wastewater TreatmentPlants Load removal (percent) Municipality Flow (Us) DBOS DQO TSS Alvarado 4.8 78.1 71.8 70.1 Barrancas 14.0 38.2 30.0 80.0 Beceml 50.9 58.1 83.3 83.9 Cajicl 105.4 79.0 78.0 92.0 Chia 41.8 73.0 71.0 82.5 Chiriguanl 52.8 32.9 48.3 62.7 Choconth 13.2 65.2 70.0 43.0 Concepci6n 26.9 55.8 85.9 46.7 ElPaso 16.5 41.8 30.2 65.9 Espinal 84.1 85.0 81.0 90.0 Fonseca 123.2 40.9 20.4 21.5 Gachancipl 6.1 25.0 38.0 40.0 Guacari 40.0 81.1 65.7 94.4 Guamal 46.4 75.0 78.0 89.0 HatoNuevo 54.4 70.0 80.2 83.4 LaUni6n 20.0 83.7 81.0 98.5 Maicao 133.0 77.5 77.7 82.2 Mosquera 83.6 86.0 85.0 91.O Roldanillo 40.0 80.5 81.3 88.7 Sesquild 4.7 74.7 78.4 82.0 Sop6 7.9 90.0 80.1 78.4 Suesca 68.0 46.2 92.0 50.0 Tocancipl 9.7 81.3 82.3 90.0 Tor0 20.0 83.0 72.8 97.8 U m i t a 8.2 53.4 68.4 65.2 Villanueva 135.0 74.1 61.O 88.0 ZipaquiraI 44.1 97.0 83.4 20.0 Zipaquirl I1 167.8 93.0 74.1 83.3 Cota 9.0 81.0 77.0 91.0 Funza 145.0 88.0 90.0 92.0 Facatativa 86.0 77.0 82.0 80.0 SanFrancisco 59.0 80.0 78.0 82.0 Anapoima 8.1 72.4 88.2 90.0 Ginebra 51.9 81.1 71.4 84.2 Tenjo 11.0 65.0 80.0 74.0 Guatapd 7.6 85.0 80.0 88.0 Icononzo 7.4 60.0 56.0 80.0 Ubatd 3.7 78.0 94.0 85.0 Source: Ministryof Development (1999) as reportedinContraloria (1999). 278 11.60 Another urban wastewater treatment issue i s the large cost required by municipal wastewater treatment, estimated to be US$2.5 billion, or 72 percent o f the total cost o f all water infrastructure (Table 11.6). An important contributor to the cost o f treating urbanwastewater is the high-cost, high-technology conventional treatment plants and the limited use o f low-technology, low-cost solutions, including lagoons, anaerobic processes and filters, and seasonal stabilization reservoirs for agricultural reuse (Libhaber and Foster 2003). Table 11.7 presents data on actual expenditures on urban wastewater treatment plants inseven cities during 1998-2001. Table 11.6: EstimatedCosts ofRequiredAqueductsand Sewers inUrbanAreas. 2001-10 Typeof expenditure Cost (US$ thousand) New aqueducts 461.3 Rehabilitationofpotablewater plants 3.1 Newpotablewater plants 17.2 Newsewers 515.2 New wastewater treatmentplants 2,568.5 Total 3,567.4 Source: MMA (2002). Table 11.7: InvestmentinWastewaterTreatment Systems, 1998-2001 City Investment (millionpesos) Bogota 229,120 Medellin 354,200 Pereira 18,330 Cartagena 21,000 Santa Marta 35,970 Manizales 8,661 Conhydra* 4,468 Total 696.948 *Marinilla/Santafk de Antioquia. Source: EPS (2002). 11.61 The MMA (2002) has reported that in 66 percent o f the cities studied, no industries treated wastewater as mandated by Decree 1594. In 23 percent o f the cities, less than 50 percent did. In 7.5 percent, 50 to 100 percent did, and in only 3.1 percent did 100 percent o f the industries treat their wastewater. 11.62 The fact that CARS and AAUs have built municipal wastewater treatment plants and are still operating them also has led municipalities to avoid compliance with the regulations. For example, the Cundinamarca CAR built 23 municipal wastewater treatment plants during the 1990s, and exempted municipalities from their water pollution control responsibilities. The Cundinamarca CAR still operates those wastewater treatment plants, and the municipalities have been reluctant to accept the financing of their ~peration.'~' 14'Interview byconsultantsofthe Universidad de LosAndes with Mrs.Gloria Lucia Alvares, Director ofCAR, July 279 The Caseof Bogoth's Wastewater Treatment Plant 11.63 The lessons from the BogotS Wastewater Treatment Plant programs are important to illustrate policy changes needed in wastewater treatment. In September 1994, the city government adopted a strategy that consisted o f the construction o f three activated sludge (secondary treatment) plants along the Bogota River within the city limits, to be located at the confluences o f the Salitre, Fucha, and Tunjuelo tributaries, which would dispose o f their treated effluents into the Bogota River. The investment cost o f the three plantswas estimated at about US$1.4 billion. 11.64 The first stage o f the adopted strategy has been completed and is under implementation. It consists o f the primary treatment o f the first plant at Salitre, constructed under a 30-year build-own- transfer (BOT) agreement with a private operator. According to public information, the investment inthe primary Salitre plant amounted to US$l25 million, and the monthly fee which the District paid the operator was US$3 million. These expenditures were financed with resources earmarked by Law 99 o f 1993 to the Bogota AAU (DAMA). As reported by the Universidad de Los Andes (2004), "acting as a developer and as a regulator DAMA has not had a free capacity to question the benefits o f a project that was promoted by the Administration." Libhaber and Foster (2003) estimated that the total amount the District would have paid during the 30-year contract period, just for the first stage o f the first plant, would amount to about US$500 million. 11.65 After it went into operation, it was found that the plant had no detectable positive impact on the water quality o f the Bogotzi River. At the time, neither the national government nor the World Bank supported the adopted strategy on the grounds that it was too costly and would not achieve meaningful benefits even upon completion o f the construction o f the three secondary plants (Libhaber and others 2003). 11.66 As a result o f the high costs associated with the primary Salitre plant, in 2003 the Bogota Water Supply Utility questioned the validity o f the adopted strategy and initiated a process o f revising past decisions and searching for an alternative strategy. On December 31, 2003, after the plant had been in operation for nearly three years, the city's mayor terminated the contract and made provisions to pay US$75 million to the contra~tor."~This sum included the value o f the infrastructure and compensations. The mayor's decision to terminate the contract was supported by a range o f financial, legal, andtechnical studies and evaluations conducted during 2002 and 2003.151In essence, those evaluations found that the project did not produce social benefits, that the contract was economically disadvantageous to the city, andthat the plant hadtechnical deficiencies. Cartagena 11.67 The analysis of alternatives for wastewater treatment and disposal for Cartagena identified and analyzed a comprehensive set o f alternatives, including the Cartagena Bay, the Cidnaga de la Virgen Wetland, the Caribbean Sea, and reuse and irrigation. The analysis included five treatment options (from preliminary to tertiary), four sites for sea outfalls, five types o f pipe materials, and nine landconveyance routes in four corridors. Overall, 15 alternatives combining different treatment levels and final disposal sites were considered. All alternatives were analyzed according to their technical, environmental, social, 2004. I 5 OResolution2036 ofDecember31,2003. Taller de Estrategia conducted financial evaluations.The Instituto Quinaxi, Carlos Albert0 Giraldo, the Water Research Center of England (WRC), and the Unidn Temporal Saneamiento Rio Bogotd conducted technical evaluations. The firmArodriguez-Azueroconductedthe legalanalysis. 280 economic, and financial merits. Effluent quality, initial investment costs, operation and maintenance costs, andlanduptake were the maincomparison criteria. 11.68 Based on extensive, highly technical modeling o f water quality, the analysis o f alternatives concluded that the most environmentally and socially sound, and economically and financially feasible, alternative for the treatment and disposal o f wastewater in Cartagena would consist o f a scheme o f preliminary treatment and disposal into the Caribbean Sea through a long outfall with diffusers at a 20- meter depth. It was envisioned beyondany doubt that the proposed scheme inCartagena would be one o f the most cost-effective environmental investments inthe country. 11.69 In spite o f providing a cost-effective solution to the disposal of wastewater from Cartagena, the existing wastewater discharges required the planning o f additional treatment systems for the future in order to meet those requirements. The Cartagena outfall will provide a minimum dilution factor o f 1:100 and an average o f 1500 at the outlet o f the diffusers, This level o f treatment cannot be reached with any existing technology. In addition, the disposal site corresponds to a sea area under the influence o f the Magdalena River sediment transport plume. Therefore, it was not sensible to require additional investments for B O D and solid removal inCartagena. 11.70 The Cartagena case illustrates the need to reform the wastewater regulations to allow a more rational approach to wastewater treatment and disposal in Colombia. The costs o f enforcing the current wastewater discharge standards are extremely high, and obviously beyond the country's reach. Such standards, established in 1984, have induced a strategy o f "no action," which in turn has caused significant environmental andhealth impacts inthe country. This has ledto situations inwhich cities with low coverage of water and sewerage service insist on constructing wastewater treatment plants, or towns insist on building wastewater treatment plants when they are located next to rivers with ample assimilation capacity. As inthe case o fthe Bogoti watershed, treatment plantsthat were subsidized by the national government are not being acceptedby municipalities. Conclusions 11.71 Colombia possesses abundant water resources. However, by 2025 there could be increased vulnerability in a few o f the country's basins and, if left unattended, this could generate potential water deficits for the following decades. However, despite the abundance o f water, the current legal and institutional framework does not facilitate water access to small water users such as small farmers, indigenous peoples, and recreational users, or for ecological needs. Nor does the current regulatory framework secure the maintenance o f water rights or provide effective mechanisms for the resolution o f water disputes. 11.72 Inrecent decades, a variety o funcoordinatedefforts, managed by various ministries (for example, public works, health, economic development), have been carried out with respect to integrated water resource management, potable water, andbasic sanitation services. As a result, states, municipalities, and environmental authorities have made dispersed investments in reforestation and water basin management with little correlation to water supply needs, and significant investments have been made in wastewater treatment with little impact on improving water quality. In addition, there are conflicts o f interest in the allocation o fwater management responsibilities to CARS. 11.73 Current water legislation (mainly the Natural Resources Code and Decree 1541 o f 1978) ranks the priorities for water use but does not indicate what the practical implications o f that ranking should be incases of water conflicts. This legal void has been at the origin of several legal disputesbetweenlarge water users, andneedsto be addressed. 281 11.74 Inaddition, current water pollution control regulations (particularly Decree 1594of 1983) donot regulate the discharge o f priority pollutants-pathogens and other hazardous wastes-r the largest polluters-nonpoint sources, such as agricultural runoff, which contribute an estimated nine times as much BOD as municipal wastewater (CONPES 3177). Nonpoint sources also contribute the largest amount o f pesticide and fertilizer waste. Even if reducing BOD remains a priority, an amendment o f Decree 1594/84 to control discharges from nonpoint sources is urgently needed. 11.75 The current water pollution control framework focuses solely on the quality o f superficial waters, leaving aside groundwater issues. However, the quality o f groundwater should also be protected because i s supplies an estimated 25 percent o f the country's population, and the restoration o f polluted aquifers is associated with greater difficulties than that o f superficial waters. 11.76 A CAR'S efforts to improve water quality could be underminedifit receives pollutedwater from a thejurisdiction o f another CAR located upstream. However, the current water pollutioncontrolregulatory framework does not contemplate clear mechanisms for addressing this issue, nor are there provisions to efficiently regulate wastewater discharges into the sea. 11.77 The effluents charge system needs to evolve, since it addresses organic pollutants discharged from point sources to superficial waters, but not the impacts o f other substances, the contributions o f the largest polluters, and the contamination o f aquifers and marine waters. Nor does the current design o f the charge'52 address the impacts o f the sewage bill on the poorest segments o f the population, Implementation o f wetland restoration and conservation actions has shown positive impacts, particularly inthe Juan Amarillo andinCidnaga Grande de Santa Marta wetlands, andthese best practices couldbe extrapolated to other locations in Colombia, including the incorporation o f incentives for wetland restoration and standards for the environmental management o f urban storm water and urbanwetlands in the regulatory framework. 11.78 Several studies (Colorado State University 2004, and Universidad de Los Andes 2004) have recommended amending the water regulations to include mandates about definition o f institutional responsibilities among numerous governmental agencies (for example, MAVDT, Ministryo f Agriculture, IDEAM,AAUs, CARS),drinkingwater quality standards, controlofnonpoint sources ofwater pollution, management o f water runoff and urban drainage, reduction o f vulnerability to natural disasters associated with flooding and landslides, management o fmarine andcoastal resources, andconservation o f important water ecosystems. Other stakeholders consider that the legal framework needs to be amended to l l l y incorporate environmental considerations o fwater resourcesmanagement(IUCN 2005).'53 11.79 For the Government o f Colombia, water resources management is a national priority. As such, a draft law prepared by the MAVDT was presented to Congress in 2005 to reform the national legal framework for water resources management, particularly addressing issues related to (i) allocation o f water rights; (ii)promotiono fpublic participation inwater resources management; (iii) establishment o f a users registry; (iv) regulations on management o f water run-off and urban drainage; (iv) control o f hazardous wastewater discharges; (vi) definition o f the ecological flow rate; and (vii) redesign o f economic instruments, such as water pollution fees (MAVDT 2006: 10). 11.80 With respect to the roles andresponsibilities pertaining to the allocation of water rights andthe integratedmanagement o f water resources, the draft law presented to Congress "establishes inArticle 11 EmbodiedinDecree 3100of2004. 153 The World ConservationUnion(IUCN) has stated its concernabout the needfor better articulationof stakeholderparticipationinwater resourcesmanagement. httr,:Nwww.sur.iu~~.orp/wani/notdetalle.cfm?r,asscodnot=lOO9. 282 the modes o f access, use, and exploitation o f water resources and establishesthe procedures for access to water resources, and defines the responsibilities o f users as well as the appropriate environmental authority. The draft law provides incentives for public participation, allowing for each o f the administrative procedures proposed in the law that those interested put forward their observations and concerns" (MAVDT2006: 10). 11.81 With respect to the recommendation o f establishing a users registry, the water law proposed by the government "establishes in Article 48 that a public registry o f national concessions should be administered by IDEAM. It also recommends that efficient and transparent procedures be developed to facilitate access to water resources; in particular, Article 29 establishes the requirements and procedures for authorizing concessions as well as wastewater discharge permits" (MAVDT 2006: 10). 11.82 With respect to the definition o f ecological flow rate, Article 21 o f Law 365, proposed by the government, defines the flow rate for surface waters as the minimum flow rate that each section o f a waterway should maintain to guarantee conservation o f hydrobiological resources and associated ecosystems. The same law "proposes that variations in flow rates over time be considered so that water availability is not exceeded. Article 13 o f the law establishes that the appropriate environmental authorities should determine the available water supply to avoid authorizing concessions for a larger flow than is available, after evaluating previous concessions, the ecological flow rate, and ministerial uses requiredby law" (MAVDT 2006:10). 11.83 With respect to designing a system to control water pollution (given that regulations o f Decree 3100 o f 2003 consider only BOD and TSS for charging effluent fees), Article 42 o f the drafi law "establishes among the factors that comprise the formula for effluent fees, the factors o f water supply, absorption capacity, dilution, andthe autopurification capacity o freceivingbodies" (MAVDT 2006:10). Recommendations 11.84 Inaccordance with the draft law presented to Congress, it is appropriate to define the roles and responsibilities o f the different institutions with respect to allocation and enforcement o f water rights. Such a law might articulate the handling o f water rights that were allocated in the past, and provide mechanisms that allow people to give up previously.awarded rights (in order to arrive at a more socially equitable distribution) and to ensure that people pay arrears on water charges. The law might consider efforts to strengthen water resources and clarify the roles o f agencies responsible for water resources management; ensure appropriate stakeholder participation; and establish a register o f users and create efficient and transparent procedures to facilitate access to water rights, including groundwater, by small users. Strengthening the capacity o f control agencies such as the Attorney General's Office and o f other local agencies and communities to ensure the enforcement o f water regulations might also be considered for inclusion inthe new legal fiamew~rk.''~ 11.85 The water law proposed by the government reflects in water fees the economic value o f water. Those fees might include the costs associated with the conservation o f the natural ecosystems that 154154 According to MAVDT (2006:9), with "respect to wastewater treatment, Resolution 1433 o f 2004 establishesthat providers of sewerage services and complementary activities, such as wastewater treatment, should formulate sanitation and effluent management plans (PSMV) and present them to the appropriate environmental authority for approval. The PSMV should be presented no later than four months after the quality objectives are defined by means o f an administrative act issued by the environmental authority. The PSMV contains the required programs, projects, timetables, and investments to advance basic sanitation and wastewater treatment, in which the municipality determines the period for constructing the treatment plant(s) considering, among other factors, the financial capacity o f the municipality, the capacity o f users to pay for sewerage services, andthe desiredquality objectives." 283 regulate water flows, and the protection of the wetlands andriparianecosystems that control water floods. An amended legal framework might also include the definition of a minimumecological flow rate. It is also important that the water allocations take into account the variability o f the peak flow rate and its corresponding probability, inorder to ensure that water allocations do not exceed water availability. 11.86 With respect to water pollution control, the draft law presented to Congress modifies Law 9 of 1993 by establishing clear water quality regulations. In addition, a system o f authorizations aimed at reducing pollution by toxic substances, pathogens, and other dangerous residues with potential adverse health impacts might be designed. In particular, the provision o f guidelines for the development of national-level primary discharge standards linked with health effects or impacts for regional-level Table 11.8: Recommendations to Improve Water ResourcesManagement Priori@ short (S), medium(w, Recommendation and long term (L) Participating institutions 1. Create efficient andtransparentproceduresto facilitate access to water rights, including groundwater, especially by small M CongresslMAVDT users. 2. Ensurethe collection andpublic disclosure o f information related to water availability andwater demands. M CongresslMAVDT 3. Clearly define the roles andresponsibilities of different institutions andcreateappropriate coordination mechanisms. S CongresslMAVDT 4. Strengthenthe capacity o f controlagencies such as the Attorney General's Office ando f other local agencies and M-L CongresslMAVDT communities. 5. Create local mechanismsfor the enforcementofwater regulations. M-L CongresslMAVDT 6. Ensurethat the economic value ofwater is adequatelyreflected inwater fees. S-M MAVDTICARsIAAUs 7. Create a Water Rights Registry. 8. Provide guidanceonallocationofwater fromaquifers. M MAVDT 9. Define minimumecological flow rate andminimumflow rate required to meetthe basic needs o fthe population. M-L MAVDT 10. Issue regulations to establishwater quality standards and establish a systemo f authorizations aimed at reducing M-L MAVDTlCARsIAAUs pollution. 11. Introduce phasedapproachesanddifferentiated treatment and disposal schemes according to regional conditions and priorities, andreformwastewater dischargeregulations to L MAVDTlCARsIAAUs allow for a more rational approachto wastewatertreatment. 12. Conduct analytical work to modernize effluent charge system inDecree3100of2004. S CongressMAVDT 13. Extrapolate best practices for wetland restoration and conservation. L MAVDTICARslAAUs 284 secondary standards mightbe developed based on analytical work. An amended regulatory framework on water resources management might clearly outline the institutions responsible for developing and enforcing such standards. 11.87 The most troubling aspects of the effluents charge system stem from its design in Law 99 o f 1993. By 2006, the effluent fee system addresses only BOD and TSS discharged from point sources to superficial waters, neglecting the impacts o f other substances, the contributions o f the largest polluters, and the contamination of aquifers and marine waters. The current design o f the charge, embodied in Decree 3100 o f 2004, also fails to address the disproportionate impacts o f sewerage bill increases on the poorest segments of the population. The draft water law presented to Congress redressesthe shortcomings o f Decree 3100 of 2004 by including the identification o f interventions that enhance social welfare, and the development o fpolicies that are efficient, effective, andequitable. 11.88 A new regulatory framework might also introduce the concept o f phased approaches, starting with the optimization of discharges by using the assimilation capacity o f receiving bodies. The new framework might also allow for differentiated treatment and disposal schemes according to regional conditions and priorities. For coastal cities, the alternative o f preliminary treatment and disposal through ocean outfalls mightbe promoted. 285 CHAPTER 12 LAND DEGRADATIONAND DEFORESTATION Data on soil erosion and salinization in Colombia are limited and discrepancies exist among the studies that are available due to differences in methodology, terminology, and coverage. Available data suggest that both erosion and salinization are signijkant problems-between 4percent and 23 percent of the soil is seriously eroded. The mean annual cost of soil degradation (erosion and salinization) due to lost crop productivity is estimated at C$1,440 billion. Despite evidence of land degradation in Colombia, few national laws or regulations spec@cally target soil erosion and salinization. Given the dearth of land degradation policies, and the general lack of pegormanee indicators for environmental regulation in Colombia, assessing the extent of theproblem andfinding solutions is dJ3cult. Existing data suggest that present eflorts toprevent, control, and mitigate land degradation by CARS need to be strengthened. Forestry policy has been effective in reducing deforestation rates from 600,000 hectares in the 1970s and 1980s to 90,000 hectares in 2004. A forestry bill, currently under discussion,offers an opportunity topromote the development of income- generating activities and generation of employmentfor forest dwellers and indigenouspeoples living in buffer zones of conservation areas. Introduction 12.1 Landdegradation has a variety of causes including depletion of soil nutrients, invasion of salts (salinization), agrochemical pollution, soil erosion, and vegetative degradation as a result o f overgrazing. All of these processes result in a decline in ecosystem services and potential agricultural yields.'55 To compensate, farmers may increase fertilizer application, leave land fallow, or convert landto uses that are more compatible with lower soil quality. Reduced agricultural productivity aside, land degradation can also have negative off-site consequences including siltation o f low-lying dams and irrigation infrastructure, contamination o fdrinkingwater by agrochemicals, andloss o fbiodiversity andecosystemhealth. 12.2 Recent global studies suggest that inthe past 50 years, 22 percent o f all cropland, pasture, forest, andwoodland has been degraded, and 4 percent of it has been degraded so severely that the damage is virtually irreversible. Most o f the degradation i s caused by wind and water erosion resulting from poor land use practices, deforestation, and inadequate watershed management. Latin America and Africa have the highest proportion o f degraded agricultural land. Although the economic impacts o f soil erosion are hotly debated, cumulative productivityloss from soil degradation over the past 50 years i s estimated to be about 13 percent for cropland and4 percent for pastureland (Scherr andYadav 1996). 12.3 This chapter discusses land degradation and deforestation in Colombia and the policies designed to prevent, control, and mitigate them. The section on land degradation focuses on two specific issues: salinization and soil erosion, with soil erosion defined as "physical loss o f topsoil, reduction in rooting depth, removal o f plant nutrients, and loss o f water" (La1 1990). The section on deforestation analyzes current forest cover, the main forces drivingdeforestation, andcosts of deforestation. Allen Blackman and Ernest0 Shchez-Triana authored this chapter, which draws heavily from a background document prepared for this study by Blackman and Morgenstern(2005). 287 Soil Erosion and Salinization: Magnitude and Dimensions of the Problem 12.4 The main contributors to soil degradation inColombia at the national level include natural factors such as geologic erosion, earthquakes, landslides, andweather changes, and anthropogenic factorsIs6such agricultural activities, urban expansion, mining, road construction, and logging (IGAC 1988). Anthropogenic factors are particularly important from a policy perspective because they are more easily controlled by government initiatives. 12.5 As discussedindetailbelow, salinization anddifferent types o fsoil erosion are more severe insome partsof the country thaninothers. Salinization, which is mainly causedby irrigation, is most commoninthe Caribbean, Andean, and Pacific regions. Erosion due to water (hydraulic) is most severe inthe Andean and Caribbean regions. Erosioncausedby wind(eolic) is most common inthe Caribbean region. Soil Erosion 12.6 There are few studies o f soil erosion at the national level. To our knowledge, inthe past 25 years only three national erosion maps have been created, one by the Institute o f Hydrology, Meteorology, and Environmental Studies (IDEAM) in2004 andtwo by the Agustin Codazzi Geographical Institute (IGAC) in 1988and2000.'57However, these maps do notuse consistent methodologies andcriteria. For example, they do not include all the same causes o f erosion-landslides andsedimentation are only includedintwo of the maps. According to IDEM (2002), the two most recent erosion maps were both generated using remote sensing techniques, but yielded significantly different results. The discrepancy was due to differences in the type o f images used, the season in which the images were obtained, and the methodology used to interpret them. Whatever the causes, these discrepancies make the evolution o f soil erosion over time difficult to assess. 12.7 The tables in this section present information derived from these maps and their corresponding studies. Table 12.1 shows the percent o f "very high" or "high" soil erosion by department. In 12 o f Colombia's 32 departments, one-third or more o f all land is highly eroded, including some o f the most populated andproductive areas inthe country. Inseven o f those departments (Atlhntico, Casanare, Cesar, Cbrdoba, Guajira, Meta, and Sucre) more than half o f all landi s highlyeroded. 12.8 The 1988 study o f soil erosion by the IGAC used criteria established by the United States Department o f Agriculture in 1981 that provide a qualitative determination o f the damage inflicted by hydraulic and eolic erosion, salinization, sodification, andcompaction. The study found that about half o f Colombia suffers from some degree o f erosion and that 23 percent had moderate to very severe erosion (Table 12.2). While "moderate" and "mild" erosion could still be controlled through soil and water conservation measures, the lands classified as having "severe" and "very severe" erosion (8.5 percent) were considered impossible or very expensive to restore. 12.9 The study found that high levels o f erosion mainly affect the Caribbean, Orinoquia, and the Andes, in areas where rains are intense and irregularly distributed. Very high erosion was found to occur inregions where there is low annual precipitation that is concentrated inonly a few months o f the year. These regions include some o f the most populated and economically active parts o f the country, particularly inthe Caribbean andthe Andes (Table 12.3). 156 Of, relatingto, or resultingfrom the influence ofhumanbeings on nature. 157 Studies o f soil degradation are planned for the future. According to an employee at IGAC's Agrology Section, IGAC is currently in the process o f establishing an agreement with the MAVDT to design studies evaluating the current state o f erosion and salinization inthe country. 288 Table 12.1: Highor Very High Soil Erosion, by Department Total area High or very high Totalarea High or very high Department wf) soil erosion PA) Department wf) soil erosion PA) Amazonas 110,213 0 Guaviare 55,080 5 Antioquia 63,307 12 Huila 19,240 32 Arauca 23,784 48 La Guajira 20,506 81 Atlintico 3,324 73 Magdalena 23,076 33 Bogoth 1,642 8 Meta 86,047 50 Bolivar 26,644 17 Narifio 30,832 9 Boyaci 23,076 29 Norte de Santander 21,995 15 Caldas 7,444 6 Putumayo 26,011 4 Caqueti 89,645 13 Quindio 1,948 3 Casanare 44,435 66 Risaralda 3,599 7 Cauca 29,883 16 Santander 30,475 20 Cesar 22,614 50 Sucre 10,719 54 C6rdoba 25,061 55 Tolima 24,061 24 Cundinamarca 22,490 32 Valle delCauca 21,277 23 Choc6 47,321 1 Vaupes 53,546 1 Guainia 70,679 1 Vichada 99,874 41 Total land area: 1,139,848km2 Total with high or very high soil erosion: 23percent Source: Larsen(2004) basedon IDEAM(2004). Table 12.2: Soil ErosioninColombia by Levelof Severity Level Hectares affected % of country affected Severe 8,875,575 7.79 Moderate 14,706,795 12.90 Mild 26,337,546 23.11 Very mild 5,657,950 4.96 No erosion 55,508,3 10 48.53 Other areas 2,259,049 1.98 Total 114.174.800 Source: IGAC (1988). Table 12.3: Principal Regions Affected by High and Very High Erosion Very high erosion High erosion Total Region Hectares Percent Hectares Percent Hectare Percent Caribbean 625,725 6.2 844,175 8.3 1,469,900 14.5 Andean 203,850 0.6 3,206,275 9.3 3,410,125 9.9 Orinoquia ___ -- 4,825,125 20.9 4,825,125 20.9 Total 829.575 8,875,575 Note: Basedondivisionof Colombiainto five hydrographicregions: Caribbean, Andean, Orinoquia,Amazon, andPacific. Source: IGAC (1988). 289 12.10 The 1988 IGAC study also found moderate erosion on nearly 14.7 million additional hectares, particularly in the Andes (10.4 million hectares) and the Amazon (1.7 million hectares). Weather, topography, and human activities-particularly landslides resulting from roads, dams, and human ettlements-have been key causes of this type o f erosion. There was mild erosion in many colonized areas (particularly inthe Andes, the Amazon, and Orinoquia) andvery milderosion inOrinoquia andthe Andes. The areas with the least erosion were the Amazon and the Pacific, which have favorable biophysical conditions, low population density, and no identified erosion in most o f their territory. By contrast, in the mountainous Andean region, where most o f the Colombian population is settled, 86.5 percent o f all landhad some degree o f erosion. 12.11 Based on landscape satellite images, the 2000 IGAC study found that 4.4 million hectares, or about 3.8 percent o f Colombia, was characterized by severe or very severe erosion (Table 12.4). This figure is much lower than in the 1988 IGAC study (8.5 percent) and the 2004 IDEAM study (22.8 percent). This discrepancy could be the result o f inconsistent methodologies and classifications between the studies or arapidincreaseinseriouslanddegradationinthe case ofthe 2004 study. 12.12 Even though the 1988 and 2004 data summarized above are not necessarily comparable, they provide some indication o f how erosion has changed during the past 16 years, including the 1993-2003 studyperiodo fthe present report. Table 12.5 comparesthe findings o fthe two studies. Table 12.4: Soil Erosionin Colombiaby Levelof Severity Area aflected Level Hectares Percent Without erosion 16,602,050 14.7 Not apparent* 50,863,505 44.9 Mild 22,132,483 19.5 Moderate 18,851,787 11.3 Severe 3,748,585 3.3 Very severe 615,453 0.5 Areas of active sedimentation 2,258,549 2.0 Rocky outcrops 1,405,984 1.2 *Not apparentaccordingto landscapesatelliteimages,but empirically identifiedin field. Source: IGAC(2000). Table 12.5: ChangeinHigh andVery High Erosion, 1988-2004 High and very high erosion Hectares Percent Total I988 2004 1988 2004 Region area Fa.) (IGAC) (IDEAM Change (IGAC) (IDEAM Change Amazon 18,977,000 0 157,590 157,590 0.0 0.8 0.8 Andean 21,927,700 3,410,125 4,369,974 959,849 15.6 19.9 4.4 Caribbean 13,194,400 1,469,900 6,205,975 4,736,075 11.1 47.0 35.9 Orinoquia 46,954,400 4,825,125 13,982,990 9,157,865 10.3 29.8 19.5 Pacific 12,931,300 0 1,292,308 , 1,292,308 0.0 10.0 10.0 Total 113,984,800 9,705,150 26,008,837 16,303,687 8.5 22.8 14.3 Sources: IGAC(1988); IDEAM(2004). 290 12.13 This exercise suggests that areas classified as having "high" or "very high" erosion in Colombia expanded significantly during 1988-2004. The total of such areas increased by over 16 million hectares, representing 14percentof the country's area. This statistic suggeststhat existing soil degradationpolicies are inadequate. 12.14 It would be particularly useful to devote more attention to the Caribbean and Orinoquia regions, since they appear to have experiencedthe greatest increasein affected areas. It would also be interesting to consider the Andean region because it is the most populated and economically active region of the country, and the Pacific region because it serves as anaturalresourcesandbiodiversity reservoir. Salinization 12..15 As noted above, soil salinization i s principally caused by irrigation. Although salinization has various adverse economic and ecological consequences, it has not received the attention from Colombian policy makers that erosionhas received. Infact, it is difficult to find studies, policies, plans, or activities that directly mentionsalinization prevention or control. 12.16 A 1983 soil map producedby IGAC indicatesthat 9 percentof Colombia's landis "susceptible" to salinization. These areas are mainly locatedindry ecosystems such as the Inter-Andeanvalleys, the Bogoth Savannah, andthe Caribbean. According to IDEAM(2004), approximately 10percent of Colombia suffers fiom highor moderate levels of salinity inthe soil that can affect crops and rangeland. Problem areas are mainly located in the Caribbeanregion (the Atlhtico, Bolivar, Cesar, Cbrdoba, Guajira, Magdalena, and Sucre departments). In addition, salinization is a problem in Cundinamarca, Huila, Tolima, and Valle del Cauca (Tables 12.6 and 12.7). Tables 12.8, 12.9, and 12.10 present the results of regional studies done for the Atlantic Coast(2002), the CaucaValley (CVC 2002), andthe Bogoth Savannah(1982, 1983). . Table 12.6: High or Moderate Soil Salinity, by Department Total area High or moderate Total area High or moderate Department m2) soil salinity (%) Department m2) soil salinity (%) Amazonas 110,213 0 Guaviare 55,080 0 Antioquia 63,307 10 Huila 19,240 20 Arauca 23,784 0 La Guajira 20,506 79 Atlantic0 3,324 74 Magdalena 23,076 84 Bogota 1,642 0 Meta 86,047 0 Bolivar 26,644 45 Nariilo 30,832 3 Boyacl 23,076 5 Nortede Santander 21,995 6 Caldas 7,444 13 Putumayo 26,011 0 Caqueta 89,645 0 Quindio 1,948 0 Casanare 44,435 0 Risaralda 3,599 5 Cauca 29,883 2 Santander 30,475 8 Cesar 22,614 63 Sucre 10,719 80 Cordoba 25,061 44 Tolima 24,061 32 Cundinamarca 22,490 16 Valle del Cauca 21,277 18 Choc6 47,321 2 Vaupes 53,546 0 Guainia 70,679 0 Vichada 99,874 0 Total land area: 1,139,848km2 Total with high or moderate soil salinity: 10percent Source: Larsen (2004) basedon IDEAM(2004). 291 Table 12.7: High or Moderate Soil Salinity, by Region Total area High or moderate soil salinity Hydrographic region (hectares) Hectares Percent Amazon 18,977,000 0 0.0 Andean 21,927,700 2,753,579 12.6 Caribbean 13,194,400 8,388,200 63.6 Orinoquia 46,954,400 0 0.0 Pacific 12,93 1,300 629,890 4.9 Total 113,984,800 11,77 1,669 10.3 Source: Larsen (2004) basedon IDEAM(2004). Table 12.8: Salinization inThree Key Geographic Areas Geographic area Soil salinization (ha.) Atlantic Coasta 2,500,000 CaucaValley 120,000 Savannahof Bogotd 5,060 Sources: a. Universidaddel Valle (2002). b. Alvaro Garcia, UniversidadNacional. c. CAR (1982-1983). Table 12.9: Salinization in the Cauca Valley Salinity and other Study area Salinity problems Municipality Hectares Hectares % Hectares % Candelaria 30,000 2,027 6.7 2,832 9.4 Palmira 41,200 13,153 31.9 20,830 50.6 Cerrito 14,818 2,853 19.3 3,880 26.2 Guacari 6,048 280 4.6 610 10.1 Buga 8,303 1,022 12.3 2,159 26.0 Buga-San Pedro 9,990 1,268 12.7 2,519 25.2 San Pedro-Tulua 13,200 1,300 9.8 1,623 12.3 Roldanillo-La Uni6n-Tor0 10,000 2,35 1 23.5 3,872 38.7 Tulua-Andalucia- Bugalagrande 14,331 845 5.9 1,382 9.64 Bugalagrande-Zarzal 10,094 2,126 21.1 2,982 29.5 Zarzal-La Victoria 14,370 4,744 33.0 4,984 34.7 Obandc+Cartago 25,130 8,407 33.5 8,932 35.5 Total 197,484 40,376 20.5 56,605 28.7 Source :CVC (2002). 292 Table 12.10: Salinization in SelectedAreas of the Bogota Savannah Area affected Municipality Degree of soil salinity Hectares Percent Mosquera(La Ramada Slightly saline 2,739 43.5 irrigation district) Slightly saline andslightly to moderatelysodaic 464 7.3 Slightly to moderatelysaline andslightly sodaic 765 12.0 Moderatelysalineandmoderatelysodaic to sodaic 12 0.2 Very stronglysaline andmoderatelysodaic to sodaic 4 0.1 Cota-Zipaquira (zone Slightly saline. 180 3.5 River) o f influence ofBogotSr Slightly saline and slightly sodaic 554 10.9 Slightly saline andslightly to moderatelysodaic 341 6.7 Source: CAR (1982 and 1983). Table 12.11: Estimated Erosion Costs for Three Departments Department Average cost of erosion @esos/hectare) Caquetl 638,673 Tolima 978,440 Santander 178,593 Note: Costsestimatedusingthe hedonicpricingmethods. Source: Baqueroand others (2000). Cost of Soil Degradation 12.17 Soil erosion generates significant economic costs. Larsen (2004) estimatesthe mean annualcost o f soil degradation (erosion and salinization) due to lost crop productivity at C$1,440 billion. He attributes 56 to 67 percent o f these costs to erosion, and 35 to 42 percent to salinization. These estimates are very conservative becausethey do not include lost productivity o fpasturesandrangeland, which represent about 88 percent o f total agricultural land in Colombia. Even so, in Larsen's study land degradation incurs a higher cost for rural areas than o f any other type o f environmentalproblem (including water andsanitation). Baquero (2000) estimates the costs o f soil erosion for the departments o f CaquetB, Meta, Santander, and Tolima (Table 12.11). The results suggest considerable variation inthe cost per hectare o f eroded land. Causesof Soil Degradation 12.18 As noted, the humancauses o f soil erosion are particularly important from a policy perspective. Humancauses typically stem from use oflandfor purposes that are not appropriate to the land's natural characteristics. Table 12.12 provides aggregate national information based on data from the MAVDT on whether total land used for different purposes exceeds the amount o f land naturally suited to these purposes. The table makes clear that in certain cases the answer is yes. For example, the amount o f land being used for cattle ranching, which mainly displaced agriculture and forestry, is more than twice the amount suitable for this use. Ranching is associated with soil compaction, erosion, and sometimes (depending onparallel landmanagement issues such as irrigation anddrainage) with salinization. 293 Table 12.12: Most Suitable LandUse andActual LandUse Most suitable use Actual use (hectares) Activity (hectares) 1997 I999 Agriculture 14,363 5,318 4,445 Cattleraising 19,25 1 40,083 41,223 Forest 78,301 58,854 63,052 Water andurban 2,259 1,430 3,156 Without use 8,490 2,298 Source: MAVDT (2003). Table 12.13: Suitable Land Use and Land Use Conflicts Area Type of conflict Description Hectares Percent None Currentuse is compatiblewith capacity 22,669,659 19.9 Underuse(total) 17,790,116 15.7 Mild Currentuse is near itsproductivecapacity 5,192,717 4.6 Moderate Currentuse is below its productivecapacity 7,829,533 6.9 Severe Currentuse is considerablybelow its productive 4,767,866 4.2 capacity Overuse (total) 19,652,641 17.2 Mild Currentuse is near its capacity 6,303,463 5.5 Moderate Currentuse is above its capacity; productive 5,635,580 4.9 processes are unsustainable Severe Currentuse is considerablyaboveits capacity; 7,7 13,598 6.8 cause ofacceleratedsoil degradation Soilsinconservation Natural forests, vegetationofmoors, mangroves, 65,538,892 47.2 etc. Total national 125,65 1,308 100.0 Source: IGAC, Ministry ofAgriculture, and Corpocia (2002). 12.19 . Table 12.13, which is derived from IGAC (2002), presents similar data on land use conflicts. The table indicates that 17percent o fthe country's landis being overused, that is, the current use i s above capacity. 12.20 Table 12.14 presents the main agricultural uses that have been present since 1980. Total area devoted to agriculture has increased by about 2 percent since 1980. Note that total imgated area, a key contributor to salinization, has increasedby over 100percent during that time. 12.21 Deforestation is also a major contributor to soil degradation. Table 12.15, which i s derived from MMA (1997), provides data on the most common activities that result in deforestation. It shows that deforestation in Colombia is mainly due to expansion o f the agricultural border (mostly for livestock production) andcolonization (for cattleraising andsmall-scale agricultural activities). 294 Table 12.14. LandUseand Irrigated Areas in Colombia, 1980-2001 (thousand hectares) Land use 1980 I990 I999 2000 2001 Arable land (1) 3,712 3,305 2,536 2,818 2,516 Permanentcrops (2) 1,480 1,695 1,828 1,727 1,733 Arable landandpermanent crops (1+2) 5,192 5,000 4,364 4,545 4,249 Permanentpasture(3) 40,100 40,083 41,304 40,920 41,800 Total agricultural area (1+2+3) 45,292 45,083 45,668 45,465 46,049 Irrigatedarea 400 650 850 900 900 Source: FAO, various years. Table 12.15: CausesofDeforestationinColombia Percent of total Causes deforestation Expansionof agricultural frontier andcolonization 73 Lumberproduction 12 Firewood consumption 11 Forest fires 2 Illegal crom 2 Source: h4MA (1997). Figure 12.1: FertilizerConsumption(100 gr./ha arable land) Source: WorldBank (2005a). 295 12.22 Fertilizer consumption in Colombia is highrelative to the rest o f the countries inthe region. The data o f Figure 12.1 indicate that the use o f fertilizer per hectare o f arable land in Colombia is more than double that o f countries such as Brazil, Ecuador, and Venezuela, and even much higher when compared to countries such as Mexico, Argentina, Panama, and Peru. Although a further assessment would be necessary to identify the economic incentives and other determinants o f fertilizer use in each country, Colombia's more intensive fertilizer consumption has evident negative environmental impacts, as described in Chapter 11, and may also be associated with the loss o f soil fertility that has occurred as a result o f erosion and salinization, and with the agricultural use o f soils with a natural vocation for different economic activities andecological functions Soil Erosion and Salinization: Policy Design 12.23 This section summarizes the legal and regulatory framework for policies designed to prevent, control, andmitigate soil erosion and salinization. These problems affect a wide variety o f economic and policy sectors. Therefore, we review laws andregulations inthree areas: environment, land use planning, and forestry and agriculture. As the discussion makes clear, the relevant legal andregulatory framework i s quite limited; few laws andregulations inany o fthese areas deal explicitly with theseproblems. Environmental Regulation 12.24 Neither Law 99 o f 1993 nor Decree 2811 o f 1974-two o f the pillars o f environmental law in Colombia-cover soil erosion or salinization indetail. They simply state that soil erosion and salinization are environmental problems andpublic authorities should be in charge o f addressing them. However, no mechanisms or specific responsibilities are mentioned. 12.25 Decree 2811 states that soil erosion and salinization, among other factors, degrade the environment. Italso states that public authorities should endeavor to mitigate these problems. 12.26 Decree 1541 regulates the water sector. It states that water users who are granted concessions for agricultural water must build and maintain a drainage system in order to prevent soil erosion and salinization. 12.27 Soil erosion and salinization only appear in Law 99 o f 1993 in lists o f topics that various environmental regulatory authorities are charged with addressing. The MMA is charged with regulating the environmental matters associated with landuse, while the CARSare charged with preventing natural disasters by, among other things, controlling soil erosion. In urban areas, this responsibility may be carried out in concert with municipal environmental authorities. Finally, Law 99 establishes that IDEAM mustobtain, analyze, study, andprocess information regarding, among other things, landdegradation. Land Use Planning 12.28 Law 388 o f 1997 i s Colombia's key land use planning law. However, the relationships between land use and land degradation are not clearly defined. Land use plans are supposed to ensure that land is only used for purposes compatible with the land's natural characteristics. Hence, a good land use plan should prevent erosion and salinization. Nevertheless, no such requifement is explicitly established either by the regulation itself, or by subsequent clarifications promulgated by different environmental authorities, a limitation that may be due to the fact that these regulationswere written by the development sector, not the environmental sector. 12.29 The objective o f the landuse planproposed inLaw 388 o f 1997 is to rationalize the development andexploitation of land.According to the law, municipalities must formulate LandUse Plans (Planes de 296 Ordenamiento Territorial, POTs) in both urban and rural areas. With regard to conservation and protection o f landandthe environment, Law 388 establishes that all POTs should consider the territory's characteristics and potentials when defining permissible land uses, and establishes that municipalities should consider long-run consequences ofthis use including the impacts on natural resources. 12.30 Decree 879 regulates Law 388 of 1997 and establishes specific guidelines for POTs. It mandates that all municipalities with more than 30,000 inhabitants should prepare a POT which contains rural &nd urban components. The POTs are required to ensure a harmonious interaction between the designated land use and the environment, conserve and protect the environment and natural resources, prevent natural disasters, and designate certain areas for conservation and protection. Although several other issues (mostly operational) are covered by the decree, these are the only ones relevant to soil degradation andsalinization 12.31 Forestry and agricultural legislation andpolicies make almost no explicit mention of soil erosion andsalinization. Soil Erosion andSalinization:PolicyImplementation Availability of Data 12.32 Unfortunately, assessment o f the performance o f soil degradation policies is difficult for two reasons. First, as noted above, environmental law and regulation in Colombia does not contain specific goals andor objectives regarding soil erosion and salinization. Control and prevention o f soil erosion i s frequently mentioned invarious planning documents, including those for environmental, disaster control, andeconomic development plans. For example, soil erosion is frequently mentioned inCARS' Regional Environmental Management Plans (Planes de Gestidn Ambiental Regional, PGAR) and Three-year Action Plans (Plan de Accidn Trienal, PAT). However, these plans almost always lack specific and quantifiable goals and indicators. Second, implementing institutions typically do not generate performance indicators. For example, in the Management Reports (hformes de Gestidn) for the years covered in the plan, performance indicators typically focus on the amount o f money invested in different areas, not on the actual results or effects o f the incidence o f these investment^.'^' Investment Data 12.33 Canal (2004) presents data on total investment in land quality by CAR. Such investment by all CARs represented just 2.8 percent o f all CAR investments in environmental activities (Tables 12.16 and 12.17). Such activities represented 58.8 percent o f all CAR expenditures during this period. Hence, investment in land quality comprisedjust 1.8 percent o f total CAR expenditures. Note, however, that the information presented by Canal has important gaps-data for many CARs are not available. These data also omit investments by farmers and other public and private entities that may overshadow CARs' investments in land quality. Notwithstanding its limitations, the Canal (2004) data indicate that land degradation is not an investment priority for most CARs. 12.34 Figure 12.2 presents the time trend of total CAR investment in land quality from 1995 to 2003. There was an approximate 104 percent increase in the total investment in land issues between 1995 and 2000, and a 33 percent decline between2000 and2003. 15'This is likelyto changeunder the new PAT formulation methodology adoptedbythe government andCARs in 2004. 297 Table 12.16: CAR InvestmentsinLandQuality, 1995-2000 (thousandpesos) CAR 1995 1996 1997 1998 ' 1999 2000 2001 2002 2003 Total Cam 168,446 292,141 - 168,255 186,726 310,826 207,612 126,300 120,000 1,580,306 CundinamarcaCar 54,672 48,815 47,002 3,261,005 3,681,623 3,197,924 Carder - - - - - - Cardique 10,262 49,781 19,861 - I81,063 - Carsucre 179,406 511,929 442,144 - - 360,859 CaS 18,639 43,909 50,770 - 350,056 - Cda - - - - - - Cdmb 3,586,902 3,192,086 2,744,274 4,216,555 4,473,975 4,050,197 Codechoco - - - - - - Coralina - - - - - - Corantioquia 252,006 367,338 333,691 93 - 1,509,607 Cormacarena 2,394 3,598 6,838 a77,a- - 24,920 Comare 713,119 813,587 870,408 657,256 523,073 159,100 Corpamag - - - - - - Corpoamazonia - - - - - - Corpoboyaca - - - - - - Corpocaldas 7,588 10,989 9,845 60,670 120,709 - Corpochivor - - - - - - Corpoguajira - - - - - - Corpoguavio 11,186 66,375 58,766 91,005 96,567 - Corpomojana - - - - - - Corponarifio - - - - - - Corponor 144,330 117,410 77,280 151,675 211,241 - Corporinoquia 4,354 20,266 20,987 30,335 - - Corpouraba - - - - - - Cortolima 376,622 472,591 1,678,147 - 362,127 178,095 Cra 12,000 17,782 15,556 - - - Crc 158,198 132,112 245,683 - - 774,783 crq 597,053 719,408 763,701 - 3,118,153 901s 1a Csb - - - - - - cvc 619,439 372,349 831,258 2,009,082 697,6 9a 1,529,975 cvs - - - - - - Total 6,916,616 7,252,466 8,216,211 11,523,730 10,899,003 14,127,109 12,894,589 10,211,003 9,421,985 91,462,714 -Not available. Source: Canal(2004). DoIndividual CARs Underinvest in Soil Conservation? 12.35 Blackman, Morgenstern, and Topping (2004b) analyzed 2001 CAR-level investment and (roughly concurrent) environmental quality data to determine whether individual CARs allocate their investment funds to the most pressing environmental problems. Soil degradation was among the six different types o f environmental risks considered in this analysis. This section briefly recapitulates the soil degradation component o f the analysis from Blackman, Morgenstern, andTopping (2004b). 12.36 For each CAR, Blackman and others (2004) compared (a) the severity o f soil'degradation risk with (b) the extent to which the CAR focused its 2001 investment funds on this risk. If CARs were allocating investment spending rationally, that is, based on an assessmento fthe severity of different risks, then there should be a correlation between (a) and (b). In other words, CARS where soil degradation i s relatively serious should be spending a relatively high percentage o f their investment funds on soil conservation, andvice versa. 298 Table 12.17: CARs InvestmentinLandQuality (thousandpesos) Type of project Studies and Erosion, salinization, Year diagnoses landslide control Others Total 1995 200,162 6,576,365 140,089 6,916,616 1996 276,3 11 6,766,484 209,671 7,252,466 1997 350,758 7,797,464 67,989 8,216,211 1998 91,005 11,32 1,420 111,306 11,523,730 1999 134,675 10,577,602 186,726 10,899,003 2000 277,63 1 13,538,653 310,826 14,127,109 2001 995,489 11,649,349 249,75 1 12,894,589 2002 435,03 3 9,539,158 236,812 10,2 11,003 2003 418,654 8,778,331 225,000 9,42 1,985 Total 3,179,718 86,544,826 1,738,171 91,462,7 14 Source: Canal (2004). Figure 12.2: CAR InvestmentinLandIssues irnsstmentanLandissues 16,000,000 14,000,000 12000,000 10,000,000 8?000,m - 6,000,000 4,000,000 2000,000 0 1995 1996 1997 1998 1999 m m1 2oM 2x3 Year Source: Canal(2004). 12.37 This analysis is limited by the availability o f appropriate data. Blackman, Morgenstern, and Topping (2004b) did not have data on soil degradation risk that exactly matched their categories o f investment spending. Their proxy for the risk o f soil degradationwas the cost of salinization and erosion for each CAR estimated by Larsen (2004), and their investment data included all types o f soil conservation measures, not just those targeting erosion and salinization. This problem aside, the categorization o f spending was based on the names o f investment projects reported by CARs and, therefore, was somewhat imprecise. 12.38 Blackman, Morgenstern, and Topping (2004b) used a simple method to compare the severity o f different soil degradation risks in each CAR with the extent to which CARs focused their investment funds on these risks. They rankedthe severity o f the soil degradation risks posed ineach CAR as "high," "medium," or "low" depending on whether the CAR ranked in the top, middle, or bottom tercile of the 299 distribution o f the soil degradation risks measure (economic costs) across all 33 CARs. They used a similar method for rankingthe extent to which CARs focused their investment funds on soil degradation. They ranked the percentage o f investment funds allocated to soil conservation in each CAR as "high," "medium," or "low" depending on whether the percentage o f investment funds spent on that risk ranked inthe top, middle, orbottomtercile ofthe distributionofthesepercentagesacrossall 33 CARs. 12.39 Having ranked the severity o f soil degradation risk and the extent to which CARs focused their investment funds on this risk, Blackman and others compared these two rankings to determine whether CARs "overinvested" or "underinvested" insoil Conservation. They said that a CAR has underinvested in soil conservation when the risk o f degradation was ranked as either "high" or "medium" but the CAR investment spending was ranked as "low." Similarly, they said that a CAR overinvested in soil conservation when the degradation risk was ranked as "low" but investment spending was ranked as "medium" or "high." 12.40 Blackman, Morgenstern, and Topping's (2004b) measures o f soil degradation risk and spending are detailed in Table 12.18. The center column presents a ranking o f the risk o f soil degradation in each CAR.The left-handcolumnpresentsa rankingo fthe percentageof investment funds devoted to this risk in 2001. The last two rows o f the third column indicate the percent o f all 33 CARs that underinvest and overinvest in that risk. The data presented in Table 12.18 suggest that CARs' allocations o f investment spending to soil conservation do not correlate particularly well with the severity o frisk:54 percent o f CARs underinvest inthis risk, while no CARsoverinvest. PlanningData 12.41 By law, LandUse Plans (POTs) are one o f the principal tools policy makers are supposedto use to prevent soil degradation. Unfortunately, however, such plans often are often not used to promote soil conservation and other environmental objectives. Table 12.19 presents self-reported information on the percent o fmunicipalities ineach CARwith POTsthat contain anenvironmental component approvedbythe CAR.Onaverage, 81percent o fthe municipalities ineach CAR have approved environmentalcomponents in their POTs. However, the existence of these components clearly does not guarantee that they are implementedor enforced. 12.42 Table 12.19 also presents informationon the percentage o f municipalities in each CAR that have basic soil zoning that would enable them to incorporate soil conservation considerations into their POTs. Onaverage, only 60 percent ofthe municipalities ineach CARhave such zoning. Forests Background 12.43 In2004, Colombia's forestry sector-dedicated primarilyto furniture manufacturing, pulp, paper, andtimber production-accounted for less than 1percent o f GDP andprovidedalmost 30,000 permanent jobs (Orozco 2004). The .current deforestation rate is estimated at 0.18 percent per year, significantly lower than that in the neighboring countries o f Panama and Ecuador (IDEAM 2004; SIAC 2002:290). This loss o f forest cover causes a variety o f environmental problems, including loss o f biodiversity, destabilization o f aquifer sources, and soil erosion. Such consequences notably affect the poorest population groups, including a large percentage o f the 800,000 indigenous people and other highly marginalizedanddisproportionately poor groups that inhabit forested areas. 300 Table 12.18: SoilDegradation Riskcomparedto CAR Investment in Soil Conservation CAR Cost of soil degradation (pesos) Percent of total investment in soil conservation CAM High Low CundinamarcaCAR High Low CARDER Low Low CARDIQUE Low Low CARSUCRE Low Low CAS High Low CDA Nla Low CDMB Medium High CODECHOCO Nla Low CORALMA Nla Low CORANTIOQUIA High High CORMACARENA High Low CORNARE High Low CORPAMAG Medium Low CORPOAMAZONIA Nla Low CORPOBOYACA High High CORPOCALDAS Medium Low CORPOCESAR Low Low CORPOCHIVOR Medium Low CORPOGUAJIRA Low Low CORPOGUAVIO Medium Low CORPOMOJANA Low Low CORPONARIRO Medium Low CORPONOR Nla Low CORPORINOQUIA , Nla Low CORPOURABA Medium Low CORTOLIMA High Low CRA N/a Low CRC Medium Low CRQ Low Low CSB Low Low cvc High High cvs Nla Low % CARSUNDERinvest 54 % CARS OVERinvest 0 12.44 Forest cover in Colombia is estimated to have been 90 percent before human settlement (WRI 2003). Today, forest cover is about 47 percent of total landarea. While this is still above the world average of 30 percent, forest cover in Colombia is distributed extremely unevenly across the Despite the relatively high forest cover, a significant percentage o f the national territory has been "drastically altered" by human action, with varying impacts across regions. Relatively deforested areas extend over large sections east of the mountains, and in high population density areas, with the most affected ones found primarilyalongthe aridpen-Caribbean belt, the SierraNevada, andthe NorthAndeanregions. `59The following discussion and analysis i s basedon forest cover data from IDEAM(2002). 301 Table 12.19: LandUse PlanningandSoil Zoning by CAR Percent of municipalities with CAR Environment component of POT Soil zoning CAM 0.97 0.97 CAR 0.90 0.97 CARDER 1.oo 1.00 CARDIQUE 0.81 0.48 CARSUCRE 0.79 0.72 CAS 0.58 0.00 CDA 0.63 0.00 CDMB 0.85 0.62 CODECHOCO 0.39 0.29 CORALINA 0.50 0.00 CORANTIOQUIA 0.86 0.83 CORMACARENA 1.oo 0.47 CORNARE 0.96 0.96 CORPAMAG 0.80 0.97 CORPOAMAZONIA 0.90 0.58 CORF'OBOYACA 0.79 0.75 CORPOCALDAS 0.89 0.81 CORPOCESAR 0.80 0.40 CORPOCHIVOR 0.96 0.72 CORPOGUAJIRA 0.73 0.27 CORPOGUAVIO 1.00 1.oo CORF'OMOJANA 0.71 0.43 CORPONA~O 0.73 0.05 CORPONOR 0.85 0.63 CORPORINOQUIA 0.70 0.00 CORPOURABA 1.oo 0.89 CORTOLIMA 0.53 0.64 CRA 0.91 0.87 CRC 0.56 0.02 CRQ 1.oo 1.oo CSB 0.67 0.75 cvc 0.95 1.oo cvs 0.89 0.79 Average 0.81 0.60 Source: MMA (2002b); ASOCARS(2002). 302 12.45 Of the country's five largest watershed basins, the East Caribbean watershed has been almost completely transformed, with only 4 percent o f forest cover remaining. The Caribbean region includes some small but important industrial forest plantations. The Andean and Orinoco regions are more heavily devoted to non-forestland uses. The Andean region is highly settled and has the densest population in the country. The Orinoco region is less densely settled-and more heavily allocated to cattle ranching. Human pressureson the forest for fuelwood andpoles are importantinthis region. 12.46 Incontrast, the Amazon andPacific regions are the most important forest regions. The Amazon basin is the best preserved, most o f its original cover still remains (Table 12.20), and it has the largest forest coverage o f any o f the five natural regions. Its forest products represent a significant share o f all wood consumed inColombia, especially for furniture, andthe region contains the majority o f Colombia's forest plantations. Approximately 14 percent o f the region's forest is indigenous peoples' territory under the collective management o f resguardos (indigenous homelands). The Pacific region has a smaller total area o f forest cover thanthe Amazon region, butthe Pacific contains vast areas o f commercial species and provides the largest share o f Colombia's industrial harvests from natural forest. Between 60 and 80 percent o f total industrial timber harvests come from this region. The Amazon region's population i s largely composed o fAfro-Colombian communities, which will benefit from improvedforest landtitles. 12.47 A review o f the level o f deforestation in each department shows two-thirds o f the remaining forest area is located within those six located in the southeastern part o f Colombia, east o f the mountain chains (Amazonian region).16' The forest cover in these departments averages almost 85 percent. Together, they represent one-third o f the national territory and have a very low population density, holding less than 2.5 percent o fthe total population. 12.48 Four departments occupy the northeast area lying east o f the mountain chains; only 3 percent o f the total population lives here, but despite the low population density, the forest cover averages only 17 percent,161 representing 8 percent o f Colombia's total forest area. West o f the mountains, four coastal departments besides Bolivar and Antioquia hold 18 percent of the total forest areas; these departments average 42 percent forest cover. 12.49 All the other 17 departments, including Bogoth, hold the remaining 10 percent o f the country's forest area, averaging 18 percent forest cover, except for the seven departments in the East Caribbean, which have less than 10 percent forest cover. The entire area harbors two-thirds o f the total population and 60 percent of the agricultural cropped land, comprising 23 percent of the national territory. Rural population density is significantly higher than east o f the mountains: 25 inhabitants per square kilometer compared to 2 inhabitants per square kilometer. Table 12.20: Forest Cover Total area Forest cover Region Hectares Percent Hectares Percent Andean 29,997 0.23 7,727 25.8 Amazonian 39,726 0.35 32,349 81.4 Caribbean 18,817 0.16 530 4.1 Orinoco 23,405 0.2 7,151 30.6 Pacific 7,211 0.06 5,423 75.2 160Amazonas, Caquetl, Guainia, Guaviare, Putumayo, andVaupBs. 16`Arauca, Casanare, Meta, andVichada. 303 12.50 The variation inforest cover across departments seems to be largely explained by the amount o f land under cultivation, and the size o f rural populations. It is clear, however, that other factors have contributed substantially to forest losses insome specific parts o fthe country. Cost of Deforestation 12.51 The cost o f deforestation is very difficult to assess; some o f its costs are included in the cost o f natural disasters, becausedeforestation is believedto contribute to the increased frequency andseverity o f flooding andlandslides. Deforestation, however, is likely contributing to the agricultural landerosion and the decreasedquality inwater resources, two processesinwhich, unfortunately, isolation o f deforestation is not possible. Anthropological processes, on the other hand, are easier to quantify.Following are some perspectives on the historic processeso f deforestation inColombia resulting from a statistical analysis. 12.52 To shed some light on the long-term historic processes o f forest loss in Colombia, a regression analysis was conducted by Larsen (2004). The analysis is based on department, specific data on amount o f forest area (1996), total land area, land area under cultivation (199l), and estimated rural population (2002). The results are presented in Table 12.21. As expected, the coefficient for land area is highly significant, implying that larger departments in general have larger forest area (although not necessarily higher forest cover). The coefficient for landunder cultivation indicates that for each additional hectare devoted to agriculture, 4.1 hectares o f forest area are lost. Similarly, the forest loss associated with total ruralpopulation is 1.5 hectares per capita. An intercept dummy was included to prevent bias since the five most northern departments east o f the mountains'62had a particularly low forest cover. 12.53 The difference between actual andestimated forest areas inthe northeast regionmentioned above totals 18 million hectares fewer than expected, based on the size o f the rural population and land under cultivation. This would indicate additional forces o f deforestation. Inthe northwest, the Departments o f Atlhtico, Boyaci, L a Guajira, Magdalena, Norte de Santander, and Santander also have significantly less forested area than expected. Incontrast, some departments have a larger forest area than expected by rural population size andlandarea under cultivation; most notably, Bolivar has close to 50 percent forest cover, compared to the 30 percent expected. Table 12.21: RegressionAnalysis of Forest Cover (hectares) Coefficient t-statistics Landarea (h2) 87.7 18.2 Landunder cultivation (ha) -4.1 -2.6 Ruralpopulation -1.5 -2.6 -2594237 -6.7 Constant 214755 0.8 RZ 0.94 Sourcesof Deforestation 12.54 The most important factor contributing to deforestation is illicit crop production (coca andpoppy). Other causes include agricultural expansion, lumber production, firewood consumption, ranching and settlements, and forest fires (SIAC 2002; Contraloria 2002b). However, lack o f reliable information and database systems preclude accurate assessment o fdeforestation andother indicators o fforest conditions. 162Arauca, Casanare, Guainia, Meta, and Vichada. 304 12.55 It is estimated that during 1980-90 coca crops went from negligible (traditional crops by indigenous people) to 25,000 hectares. By 1994 the official estimate o f land used for commercial coca crops was 70,000 hectares to 83,000 hectares (Escobar Ramirez 2004). In 1999, Carlos Cesar Perafh (referenced inDavis and Sanchez 2003) estimated that 17percent o f the country's illicit crops were being cultivated within indigenous territories. These illicit crops have had a negative impact on the indigenous communities o f Putumayo, and on Afro-Colombians o f the Patia River in the department o f Narifio (Davis and Shchez 2003). The MMA indicates that during 1974-98, illegal crops destroyed 850,000 hectares o f forests in Colombia (Contraloria 2002). Illegal crop eradication through fiunigation is also considered to be a significant threat to forests and to biodiversity and human health. The debate over fumigation in Colombia is polemic, and has even resulted in repeated requests from the Defensoria del Pueblo (the public institution in charge o f human rights enforcement) to the government for the suspension o f all chemical aerial fumigation in light o f its potential negative effects on health and the environment (Defensoria del Pueblo2002). 12.56 In addition to illicit crop production, both sprawl and changes in land use cause a negative feedback, resulting in additional settlers moving to areas adjacent to the forest in order to avoid the violence in other areas. In essence, this means local land use issues are more important than industrial timber harvests interms o f impacts on sustainable forestry. It also suggests that local rights to the use o f the forest are critical when concerns related either to deforestation or to long-term, sustainable forest management are addressed. Under the current conditions, large areas o f forest have greater value when converted to agriculture, since local stumpage values are most often derived from fuelwood, which is a low-value product. Because most o f the higher commercial timber values go to transportation costs, leaving little benefit to local populations, forests and trees that are more valuable for industrial uses are also under pressure from humansettlement. 12.57 Furthermore, since the forest's agricultural and fuelwood users are geographically dispersed, their dominance as sources o f deforestation and forest degradation implies difficulties for the CARs that have forestry responsibility. These agencies can only hope to lead by good example and good reason. They can periodically review the forest condition andenforce easily managed requirements o f forest use, but they can never expect to control all forest use by extensive populations o fdispersed subsistenceusers o fthe forest. Policy Design 12.58 Law 2 o f 1959 declaredas forest reserves a total o f 58,162,950 hectares, corresponding to over 50 percent o f the national territory. Most o f these lands are owned by the government. Later, in 1961, Law 35 required two-thirds o f any colonized parcel to be cleared in order to entitle ownership, thus fostering extensive deforestation practices throughout Colombia. 12.59 As in other areas o f environmental protection in Colombia, the most important legislationto date is the 1974 National Code for Renewable Natural Resources and Environmental Protection (Cbdigo Nacional de Recursos Naturales Renovables y de Proteccibn a1 Medio Ambiente, CNRN). As discussed inChapter 13, the CNRNregulates the conservation anduse of forestry resources andthe objectives o f a National Parks System. By 2005, the National Natural Parks System (SPNN) comprised 46 areas with a total o f about 9.6 million hectares, approximately 9 percent o f the country. The system is highly representative o f Colombia's different marine andinlandforests ecosystems.163 163Within the SPNN there are tropical rain forests, dry forests, and subhumidtropical forests, xerophytic anddesert scrublands, Andean andcloud forests, moors, natural savannahs, alluvial forests near rivers, and mangroves, among other types ofvegetation. 305 12.60 The incentives for deforestation established in Law 35 o f 1961 have been confronted since 1988 by Law 30 on land tenure and by the law on forestry incentives, aimed at controlling degradation and deforestation. Law 30 o f 1988 established that both proof of occupancy and economic exploitation o f two-thirds o f the land were required for land titling. Conservation o f protective vegetation and rational use o f forests were included as economic activities. 12.61 As elaborated in Chapter 13, most indigenous reserves are located innatural forests containing a significant share o f the country's biodiversity. Nearly all indigenous Colombians live in collective territories legally known as resguardos. The 1991 Constitution allowed the country to set apart about 30 million hectares, or nearly 26 percent o f the country, as indigenous reserves. According to the 1991 Constitution, these resguardos are inalienable (that is, the title to these lands cannot be acquired merely through unintempted possession o f specific duration). However, the indigenous reserves overlap with the NationalParks, as they comprise some 30 percent o fthe SPNN area. 12.62 The 1991 Constitution and Law 70 o f 1993 state that approximately 3 million hectares-about 2.5 percent o f the country-were allocated to Afro-Colombian communities settled in the Choc6 biogeographical region. This area comprises forests representative o f one o f the world's most important conservation hot spots, due to its great biodiversity andhighlevel o f endemism.'64 12.63 Law 99 o f 1993 contains provisions to establish Forest Protection Reserves and Forest Protection-Production Reserves. By 2003, these provisions hadresulted inmore than 2.1 millionhectares demarcated and with management plans in place. There are also Integrated Management Districts comprising 2.8 million hectares, and 500,000 hectares o f land officially protected by municipalities and departments (Ruiz andVergara 2003) 12.64 In1993, Congressissueda lawto createthe Forestry IncentiveCertificates, bywhich forest owners who undertake reforestatiodforestry plantations o f a protective nature can receive a partialreimbursement o f reforestation costs derived either fkom direct investment or maintenance (70 percent o f costs for native species, 50 percent for introduced species). In addition, Colombia has introduced tax deductions for investments inforestry plantations. This mechanism has beenless successfulthan direct subsidy. The use o f subsidies, such as that established by law, signifies a transfer of financial resources from taxpayers to reforesters. These subsidies have beenjustified by the argument that reforestation practices are beneficial to the environment, particularly for soil conservation and erosion control, and as a buffer against climate change. 12.65 The forestry regulations currently inplace regulate the use and exploitation o f forests and oil-nut palms, and establish a prohibition on the destruction o f oil-nut palms when these are located in natural forests. Exceptions to this prohibition must be approved by the Ministry o f Finance. The decree also establishes that any action that attempts to use forest resources for private gain (inprivate or public areas) i s illegal. All such illegal actions are subject to a fine (between C$l andC$lOO) or prison. 12.66 The CNRN and forestry regulations issued in the 1970s and 1980s establish that the National Institute o f Renewable NaturalResources (Instituto de Desarrollo de 10s RecursosNaturales Renovables, INDERENA-MAVDT's predecessor) is responsible for grantingpermits to exploit anduse public forests. For areas smaller than 20,000 hectares, such permits are assigned for a maximum o f 10 years. To obtain such permits, the agent must undertake an environmental impact assessment. For areas larger than 20,000 hectares the assignment o f this rightmustbe done bypublic bidding. Biological species foundonly within aphysically narrowhabitat. 306 12.67 By law, all agents that exploit public forests must restore them. Regulations establish that all reforestation programs mustbe approved by the responsible local authority, except for forests developed on untilled, uncultivated, or inappropriate landbyprivate agents who retainfull controlo fthe forest. 12.68 Forestry regulations also provide economic incentives for the conservation o f water and land in the upper Magdalena River basin.'6s The one-time, lump-sum economic incentive i s to be given to individuals or groups of farmers who invest in agricultural improvements including labor practices (crop rotation, intercropping, plantation on alternate rows), reforestation, pasture improvement, and the use o f natural resources such as live barriers, and mechanical practices for erosion control and water conservation. Forestry regulations also state that the incentives will be prioritized in the following order: (a) establishment o fnew farms; (b) maintenance o f new farms; and(c) erosion control. 12.69 In the 1990s a Forest Conservation Certificate (CertiJicado de Zncentivo Forestal, CIF) was established for private owners of virtually undisturbedforest areas, inrecognition o f andas compensation for the costs o f protecting the forest. The National Council for Economic and Social Policy (Consejo Nacional de Politica Econbmica y Social, COMES) is responsible for assigning these financial resources. The areas eligible to receive the incentive are: forests over 2,500 meters above sea level, those near water sources, those in natural parks, and those in the areas that provide water resources to municipalities. The local environmental authority is to monitor and evaluate use o f the forest. The economic incentive inthe first year i s equivalent to seven minimumwages per hectare, and insubsequent years it will be adapted usingthe following equation: VA =VB +FAR Where: VA =the adjusted value every year VB =the basevalue establishedby the environmentalauthority FAR=the regional factor further, FAR=FTP FPT * where FTP is an altitude factor assigned as per the following table: Altitude FTP Lessthan 1,000 meters 0.63 1,001 to 2,000 meters 0.77 2,001 to 2,500 meters 0.89 More than 2,500 meters 1.oo FPTis an altitude factor assigned as per the following table: Area FPT Lessthan 3 hectares. 2.0 3 to 10hectares 1.6 11to 20 hectares 1.4 20 to 30 hectares 1.2 More than 30 hectares 1.o 165Essentially, the area surroundingthe CombeimaRiver inthe departments ofHuila andTolima. 307 12.70 Within the development plans of the 1990-98 administrations, and based on the analysis by USAID (1989) and the World Bank (1989), the government made deforestation control a priority for government agencies. By 1990, the main driving forces o f deforestation were found to be human settlements, use of firewood, lumber production, furniture manufacture, and pulp and paper production. Deforestation control was made a joint responsibility of the MMA and the CARs. The government designed the Forestry Action Plan for Colombia and financed it through loans by the Inter-American Development Bank and the World Bank. The policies for investing in reforestation and watershed basin management have had significant financial support from the government from 1993 onward. 12.71 Nevertheless, several authors (Orozco 2004; Rodriguez 2005; Andrade 2005; Ponce de Le6n 2005) argue that the priorities of the forestry policy should include (a) creating a reliable and publicly accessible forest information system to facilitate planning and decision making; (b) increasing employment and income-generating options for forest dwellers, reducing negative environmental impacts on water basins and soils, and conserving biodiversity; (c) generating alternatives to diversify nontimber forest products and improving the livelihood of forest communities; (d) promoting sustainable exploitation o f forest resources; and (e) consensus-building involving the government and the public on creation o f an environmental services market, improved basin management, and decentralizationo f forest management. Vergara and Ruiz (2003) argue that the valuation and capture o f revenues from environmental services represent potential revenue for rural communities. These revenues may help crop eradication andindirectly assist with the peaceprocess. Effectiveness of Policy Implementation 12.72 Colombia has competitive sectoral advantages stemming from its biogeographical diversity, which provides a wider variety o f species with economic potential. In addition, the productivity among Colombia plantations has increased from 16 cubic meters per hectare per year in 1980 to 25 cubic meters per hectare per year in 1990, which are national levels comparable to those inChile. 12.73 Despite the shortcomings in primary information sources, it seems that the policies designed to control deforestation have been quite effective. Estimates o f deforestation rates in the 1970s and 1980s amounted to 600,000 hectares per year (INDERENA 1978; World Bank 1989). Currently, deforestation estimates are 91,932 hectares per year (IDEAM, 2004).'66Law 30 o f 1988 and Laws 70 and 99 o f 1993, andenforcement by INDERENAandthe CARs, have contributed to decreasing the rate of deforestation. It is also probable that other causes reduced new settlement areas significantly throughout Colombia, to the point that according to IDEAM (1998: 295), the country "lost about 145,000 hectares o f forest and recoveredsecondary forest cover insome 3,445,000 hectares, resulting ina net gain o f 3,300,000 hectares o f forest cover in 10years, or 330,000 hectaresper year." 12.74 A 2005 report by IDEAM(Table 12.22) showedthe largest increases ingreen coyer during 1994- 2001 were those in agroecosystems (57,873 hectares per year [hdyr], average growth rate 0.2 percent), forestry and palm plantations (15,777 hdyr; average growth rate 7.7 percent), and human settlements (3,011 hdyr, average growth rate 2.3 percent). Covers showing significant surface reductionfor the same period include forests (101,303 hdyr; average reduction rate 0.2 percent) and Andean highlands (nevudos)(1,765 hdyr; average reduction rate 5.1 percent). 166The Contraloriareportsthat "Colombia does not have a baseline that allows for determination of the state of, and changes in, the quality and quantity of natural resources and the environment over time; for example, reliable statistics do not exist on the state of natural resources, the pressure exerted on them and the subsequent response, which hinders follow-up and evaluation of national and state management inpreserving it" (2002b:7). 308 Table 12.22: Changes in Green Cover in Colombia, 1986-94 and 1994-2001 Forest cover (thousand hectares) 1986-94 change 1994-2001 change Annual Annual Cover type 1986 1994 Total average 2001 Total average Urbadartificial 92 125 33 4 144 19 3 Agroecosystems 33,382 34,367 985 122 34,749 381 58 Forests 56,902 56,280 -622 -77 55,613 -667 101 Forestryplantations 107 165 58 7 269 104 16 Moors 1,725 1,614 -111 -14 1,627 13 2 I Savannah 15,525 15,53 1 6 1 15,556 25 4 Snow 54 40 -14 -2 29 -11 -2 Wetlands 2,991 2,848 -143 -18 3,006 158 24 Scarce vegetationcover 3,124 2,958 -166 -20 2,949 -9 -1 Withoutnaturalcover 57 54 -3 0 56 2 0 Source: Calculation factor between 1986and 1994= 8,091 andbetween 1994and2001= 6,587. DEAM(2004). Table 12.23 ProtectiveReforestationin Colombia, 1991-2002 Year Area planted (hectares) 1991 1,100 1992 739 1993 105 1994 3,69 1 1995 17,951 1996 16,777 1997 21,277 1998 13,815 1999 7,204 2000 14,949 2001 19,109 2002 64,s 10 Total 181,527 Source: MMA (2002). Reforestation Data 12.75 The implementation of the reforestation policy has been very effective. Approximately 180,000 hectares were reforested during 1991-2002 (Table 12.23). However, according to MAVDT (2003), approximately 15 million hectares that should be used for forests and forestry activities have been devoted to other uses. Thus, only approximately 1percent of the "forest deficit" was reforested during 1991-2002. 309 Bill on Forestry Resources Management 12.76 By June 2005, a forestry bill was being discussed in Colombia's National Congress. The objective o f the bill is to foster development o f the Colombian forest sector and regulate the activities related to the management, exploitation, and sustainable use o f forest resources, and the transformation, transport, andcommercialization o f derived goods and services. Although various stakeholders agree that a solid legal framework i s needed to unify the current statutes and laws, the bill has been controversial. Some o f the main criticisms are that it lacks definitions and clear support o f the timber industry, and has little in-depth treatment o f conservation, protection, and restoration issues; it lacks payment for the environmental services approach; it undermines and is inconsistent with the goals o f the Plan Verde and the National Forestry Development Plan (2000), Law 99 o f 1993, Law 70 o f 1994, andthe Forest Policy o f 1997, among others; it does not acknowledge indigenous peoples andAfro-Colombian communities as owners o f the forests in their lands; and it does not incorporate the principles and recommendations o f international agreements and conventions that Colombia has ratified, such as the Convention on Biological Diversity, the International Timber Agreement, the RAMSAR Convention, the UN Convention to Combat Desertification and Drought, and the Framework Convention on Climate Change (Andrade 2005; G a l h 2005; Ponce de Le6n 2005; R o l k 2005). A general criticism o f the bill is that it develops a different perspective from the one established in the current policy and institutional framework. The perspective established in the existing policy stems from the perception o f forests as complex ecosystems that produce goods and supply multiple services and are a base to biological and cultural diversity. The bill, according to some o f its critics, implies that conservation is solely a tool for production, insteadof an endinitself. 12.77 Several stakeholders (Gaitan 2005; Rodriguez 2005; Ponce de Le6n 2005; Andrade 2005) have suggested modifications to the forestry bill currently under discussion in Congress toward sustainable development in the sector, defined as the process to reach optimal and sustained production o f forestry resources for society's benefit and to improve the quality o f life, without affecting the equilibrium and integrity o f forest ecosystems. The forestry bill could include provisions to: (i) rural poverty reduce through job creation, increased profitability o f forest activity, and implementation o f payments for environmental services; (ii) reduce adverse environmental impacts associated with the sector including further reduction o f deforestation rates, recovery o f degraded landthrough reforestation, andreconversion o f marginal agricultural zones for productive use; (iii) reduce pressure on key areas o f biodiversity; (iv) reduce forest fires and increase carbon dioxide collection; (v) strengthen national security through reduced illegal activities; and(vi) promote public participation inprotection andrestorationprograms. ConclusionsandRecommendations SoilErosion and Salinization 12.78 Data on soil erosion and salinization in Colombia are limited and discrepancies exist among the existing studies due to differences in methodology, terminology, and coverage. Nevertheless, existing data suggest that both erosion and salinization are significant problems. They indicate that between 4 percent and 23 percent o f the country's soil is seriously eroded and that the problem appears to have worsened over the past 15 years, Serious soil erosion is most prevalent in the Caribbean, Andean, and Orinoquia natural regions, which are among the most populated andor productive regions inthe country. Existingsalinization studies suggest that soils inapproximately 10percent o fthe country now have levels of salinity high enough to adversely affect crop and rangeland productivity. Problem areas are basically located inthe Caribbean natural region. 310 12.79 Soil erosion and salinity generate significant economic costs. Larsen (2004) estimated the annual costs stemming solely from lost crop productivity at C$1,440 billion and attributed 60 percent o f these costs to erosion and the remaining40 percent to salinization. As for the causes o f erosion andsalinization in Colombia, salinization is mainly a result of irrigation, while key drivers of erosion include the expansion o fagricultural activities, particularly cattle ranching. 12.80 Few national laws or regulations specifically target soil erosion and salinization. Most o f the existing legislation andregulations concern broader problems such as landuse planning anddeforestation, and do not explicitly contemplate the linkages between these issues and soil erosion and salinization. Policies specifically targeting soil erosion andsalinization are limited. 12.81 Given the dearth o f specific policies addressing land degradation and the lack o f performance indicators for environmental regulation in Colombia, assessing the extent of the problem and finding solutions is difficult. Nevertheless, existing data suggest that efforts to prevent, control, andmitigate land degradation by CARs have been minimal. CARS'investments inland quality during 1995-2003 were less than 2 percent of total CAR investment. A comparison across the 33 CARs of the severity of soil degradation risk with the extent to which CARs focus their investment funds on this risk suggests that CARs systematically underinvest in addressing this risk. Finally, data on land use planning suggest that this mechanism for preventing soil degradation has significant limitations. Twenty percent o f municipalities do not have an environmental component intheir POT, and40 percent do not have the soil zoning neededto ensure that the environmentalcomponents are effective inpreventing soil degradation. Table 12.24: Recommendations Priority short (S), medium(m, Recommendation and long term (L) Participating institutions 1. Create areliable andpublicly accessibleforest, soil erosion, andsoil salinizationinformation systemto facilitate L CongressMinistry of planning anddecisionmaking. Agriculture 2. Developanalyticalwork to identify the costs andbenefits ofalternativeinterventionsto control soil erosionandsoil Mto L MinistryofAgriculture salinization. 3. Generatealternatives to diversify nontimber forest products and improvethe livelihoods offorest-dwelling L CongressMinistry of communities. Agriculture 4. Fosterthe capacityof forest-dwellingandindigenous communitiesandcooperativesto profit from the sustainable Mto L CongressMinistry of andproductiveuses offorestareas. Agriculture 5. Reduceruralpoverty throughjob creation, increased profitabilityofforest activity, andimplementationof Mto L CongressMinistry of paymentsfor environmentalservices. Agriculture 6. Establishspecificmechanisms for cost recovery, nontimber forestproduction, ecologicalservicesvaluation, small-scale MtoL CongressNinistry of user permits, andintellectualpropertyrights. Agriculture 7. Ensurepublic participationinsectoraldecisionmaking regardingsoil degradationcontrol andforestry CongressNinistry of management,especiallyfor communities, small farms, and S Agriculture localcivil societyorganizations. Forestry Policy 12.82 Forestry policy has been effective in reducing deforestation rates from 600,000 hectares in the 1970s and 1980s to 90,000 hectares in2004. During 1988-1998, recovered secondary forest amounted to 3,445,000 hectares. The net gain in forest cover was thus estimated at 330,000 hectares per year. In addition, reforestationactivities during 1991-2002 accounted for 180,000 hectares. 12.83 The forestry bill is a chance to promote increased opportunities for the development of income- generating activities and for generation o f employment for forest dwellers and indigenous peoples living inbuffer zones of conservation areas. The billcouldprovide anopportunity to strengthen the capacity of these communities and cooperatives that so far have been unable to take greater advantage o f sustainable andproductive uses of forest areas. The forestry bill also provides an opportunity to put inplace specific mechanisms for cost recovery, nontimber forest production, ecological services valuation, small-scale user permits, and intellectual property rights. All these mechanisms could be effectively applied to indigenous communities and help foster accountability by ensuring a stronger involvement o f local communities, small farmers, andlocal civil society organizations insectoral decisionmaking. 312 CHAPTER 13 BIODIVERSITY LOSSAND OTHER GLOBAL ENVIRONMENTALPROBLEMS By several measures, Colombia is among the world's five most ecologically diverse countries. With an area of 1.14 million square kilometers, Colombia represents only 0.8 percent of the world's surface area,yet it houses 15percent of all known terrestrial species. Althoughprotected areas and indigenous reserves represent 34percent of Colombia's national territoly--among the highest levels of biodiversity in the worlaLthefindings of this chapter suggest that the measures to createprotected areas do not accurately reflect social concerns of inhabitants of those areas. Greater involvement of local stakeholders has already begun to show positive results, and could signiJcantly benefit biodiversity useand conservation. Although Colombia's contribution to global greenhouse gas (GHG) emissions is less than 0.3 percent of the world5 total, it has taken advantage of international financial mechanisms to develop renewable energy projects aimed at reducing GHG emissions. Likewise, Colombia contributes less than 0.45 percent of the total ozone-depletingsubstances (00s) emittedglobally and has reducedthe amount of ODswithgrantsfrom theMontreal Protocol. Introduction 13.1 By several measures, Colombia is among the world's five most ecologically diverse countries (Mittermeier 1998).'67 With an area of 1.14 million square kilometers, Colombia represents only 0.8 percent of the world's surface area, yet it houses 15 percent of all known terrestrial species. It has 10 percent o f the world's flora and fauna, 20 percent o f the planet's bird species, a third of the primate species in tropical America, and more than 56,000 registered flowering plant species, including 15 percent o f the world's total orchid species. The country is first in the world in the number of bird and amphibian species and second interms of vascular plants. The country possesses 18 ecological regions (WWF/World Bank Report 1996), the second highest of any country in Latin America. Indeed, Colombia's ecosystem map (Humboldt Institute 1998) identifies 65 ecosystem types. Colombiapossesses 12 percent of the continent's humid and dry hotspots, and two of the world's most important areas in terms of biodiversity: the biogeographical Choc6 corridor andthe Amazon Basin (Maya 1995). Protected areas and indigenous reserves represent 34 percent of Colombia's national territory andpossess some of the highest levels ofbiodiversity inthe world. 13.2 Colombia's cultural and ethnic diversity is also exceptional. The United Nations Educational, Scientific and Cultural Organization (UNESCO) has declared five sites in the country as being o f important historical and cultural heritage to humanity. Eighty-four indigenous groups recognizedby the government have a total population o f 800,000 (2 percent o fthe nationalpopulation). These groups live in 1,500 communities and are located in 27 of the country's 32 departments. Indigenous communities generally inhabit areas rich inbiodiversity (UAESPNN 2000.). Local indigenous cultures have developed ways o f living that are based on centuries of experimentingwith the balance between the needs of human communities and the needs o f local ecosystems.'68 Their ancestral land management practices have largely preserved diverse ecosystems, andlarge regions withintheir territories remain relatively intact. 167KulsumAhmed, RichardMorgenstem,andCarolinaUmtiaauthoredthis chapter. Tropical forests present a complex landscape, the product of relationships, practices, techniques, fears, and preferences o f the societies that inhabit them. In other words, the "reserve of biodiversity" i s in part the cultural 313 13.3 Regarding other global environmental problems, Colombia has taken advantage o f international financial mechanisms to develop renewable energy to reduce the amount o f ozone depleting substances (ODs). Emissions o f ODS inColombia add up to less than 0.45 percent o f global emissions, and global greenhouse gas (GHG) emissions are between 0.2 and 0.3 percent. Colombia emits very small amounts o f carbon dioxide (COz); 1990 emissions were equivalent to abdut 1percent o f the U.S. emissions. 13.4 The remainder o f this chapter discusses the problems associated with biodiversity loss, and the actions implemented in Colombia to tackle the problems associated with climate change and ozone depletion. Biodiversity 13.5 Although an extensive literature exists on biodiversity, there is little consensus on estimating the potential value o f biodiversity conservation. Areas that could receive benefits from such conservation include ecotourism, genetic prospecting for pharmaceuticals, harvesting o f renewable resources, ecosystem services, and the intrinsic values o f species. Limited work has been done on how the value of biodiversity conservation should be captured in order to give local communities or national governments an incentive to conserve (Polasky and others 1996). According to a study prepared by Fedesarrollo in 2002, global benefits associated with the biodiversity in Colombia's National Natural Parks System are valued at US$3.2 million at current exchange rates. A study on green markets will be conducted in the medium term to evaluate the contribution o f biodiversity to the Colombian economy. Following is a review o f the existing empirical literature that attempts to estimate the value o f various aspects o f biodiversity. 13.6 A current trend inglobaltourism is for travelers to select their destinations basedon the flora and fauna of the location, also known as nature-based tourism or ecotourism. For some countries, such as Costa Rica andKenya, this type o f tourism represents a significant flow o f income. A study conducted in Costa Rica places an estimated annual value o f US$2 million on income derived from the Monteverde Reserve (Echevda and others 1995). In Madagascar, ecotourism-generated benefits were estimated to be between US$2 million and US$3 million annually, as measured in 1987 dollars (Maille and Mendelsohn 1991). Estimates show that a new national park inMadagascar could generate approximately US$90,000 annually (Mercer andothers 1995). 13.7 These estimates are for the total value of the travel. The destination country does not receive the full amount of this revenue (Polasky 1996). As an example, one study estimates that of approximately US$1,300 spent by a typical tourist to the Galapagos Islands, a mere US$lOO o f that amount was actually coming back to the local economy (Southgate 1996 citing de Miras 1994). Other concerns regarding ecotourism stem from questions about its capacity to generate well-paid localjobs and serve as a catalyst for the development and growth o f local economies, and the possibility that it might cause greater environmental degradation to the habitats visited by the ecotourists (Polasky 1996). 13.8 Adequate flora and fauna is not the only criterion for a successful ecotourism site; it must also provide the potential visitor with assurances o f their personal security. Colombia's situation is a prime example o f this: despite its richly diverse ecosystems, many North American and European travelers perceive the country to be an unsafe destination due to the regional drug trade, guerilla activity, and metropolitan crime. Ifthe actual and perceived situation does not improve, Colombia will be overlooked as a favorable destination inexchange for countries such as Costa Rica or Belize (Polasky 1996). result of the daily, economic, and material practices ofthe groups that have traditionally inhabitedthe region. 314 13.9 Genetic prospecting is the systematic search for new sources o f chemical compounds, genes, proteins, microorganisms, and other products that have potential economic value and that can be found in natural biological wealth. Therefore, promoting the conservation o f animal and plant species provides a strategic long-term benefit because species that do not have a current use may prove valuable as research technologies develop. This is known as an "option value," because the estimated value o f the species can be realized only if its extinction is prevented (Polasky 1996). Experts, however, have a difficult time arrivingat a consensus on the monetary value that should be placedon land (per hectare) to estimate the genetic prospecting value for pharmaceutical companies. One study determined that the landheld a value o f US$1 per hectare for the firm doing the actual genetic prospecting, but that the public benefit o f these efforts placed the value at US$50 per hectare, indicating that subsidies to encourage conservation and genetic prospecting would bejustified (Mendelsohn andBalick 1995). 13.10 Resource harvesting is the harvesting o f biological resources for the purpose o f subsistence or economic gain. A prominent example o f this i s the commercial fish market. Advocates o f resource harvesting argue that, if done in a sustainable manner, the harvestingo f a biological resource will yield the highest current value for that resource. This argument i s valid, however, only when the biological growth rate o f the harvested resource is greater than the social discount rate. When it is the reverse, the course o f action that will yield the maximum present value o f the harvest, even as the resource stock approaches zero, is to make the resource extinct (Clark 1973). Obviously this i s not a responsible approach for resource managersto take. 13.11 An area where these issues are debated is the forestry sector. One study addressing tropical deforestation concerns determined that the value o f nontimber products harvested on a sustainable basis would yield much greater financial returns than a one-time sale o f timber from clear cutting followed by nonforestry uses o f the land (Peters andothers 1989). Another study, however, argues that this premise i s unfounded given the unique characteristics o f the site in question, such as soil type and access to markets (Southgate 1996). 13.12 Existencevalue refers to the intrinsic value o f an asset, usually natural or environmental. It is the value o f the benefits derived from the asset's existence alone, and is separate from the value accruing from any use or potential use o f the asset. Since there are no observable prices for these values, nor perhaps any observable behavioral trail, most economic methods for estimating value are not applicable. Perhaps the only method by which economists can estimate existence values i s contingent valuation. In general, more charismatic species (for example, large mammals) tend to have higher willingness-to-pay values than species lacking incharisma (for example, the striped shiner). However, the range o f reported values across different studies, even for studies on the same species, is often quite large. There i s not a clear sense that economists are able to estimate the value o f biodiversity conservation with much precision. 13.13 Along with the usual problems associated with implementing and interpreting a contingent valuation study, several facets o f the species conservation issue present special difficulties. For example, as inmany settings, lack o f informationor familiarity may make it difficult for people to accurately assess value. Conserving species is viewed as a moral imperative by a fraction o f the population. Asking them about their willingness to pay to conserve a species may be viewed similarly to asking them about their willingness to pay to avoid having a murder committed (Polasky 1996). Even for people with less extreme views, there are various ethical and emotional commitments that might cause responsesto survey questions to be highly variable. In addition, analytical work on diversity measures focuses on the relationships among species. The value o f conserving any particular species is a function o f the set o f species that is conserved (Solow and Polasky 1994; Weitzman 1992). This factor is typically ignored in contingent valuation studies that focus primarily on the value o f a single species. 315 13.14 Given these factors, there are special challenges associatedwith the formal economic valuation o f biodiversity. Nonetheless, `from the perspective o f local indigenous groups coexisting in national parks, clearly from a livelihood and cultural perspective, the value is potentially immeasurable. The NationalProtected Areas System 13.15 Colombia's significant natural endowment is conserved within the National Protected Areas System (NPAS), which includes public andprivately owned lands throughout the country (Table 13.1.) The NPAS contains the NationalNaturalParks System (NNPS) consisting of 49 National Parks spanning close to 10 million hectares. The area covered by the national parks represents close to 10 percent o f the national territory, which is slightly below the average of 11.2 percent for the Latin American region (Figure 13.1). Compared with the other six mega-diverse Latin American countries, the percentage o f landthat is protectedis larger than that o fBrazil andPeru, andsimilar to that o fMexico, but smallerthan that of Ecuador. Colombia protects an area that is larger than most biodiverse countries outside the region, including China, India, Kenya, andMalaysia. Protected areas inhigher income countries such as Canada, Italy, and Japan cover similar or smaller shares o f their territory. The NNPS constitutes the country7s principal in situ biodiversity conservation strategy. The NNPS encompasses 50 of Colombia's 108 biogeographical districts (Biocolombia 2000) and includes 12 percent o f Latin America's humid and dry wilderness refuges and two of the most biodiverse regions in the world: the biogeographical Choc6 and the Amazon Forest (Maya 1995). 13.16 The NPAS also includes 5 million additional hectares o f land under conservation. This system contains two internationally declared wetlands through the Wetlands Convention (RAMSAR) and five World Biosphere Reserves: the Sierra Nevada de Santa Marta, the Citnaga Grande de Santa Marta, the San Andrts and Providencia Archipelago, the Tuparro National Park, and the Colombian Massif. In addition, UNESCO declared the Katios National Park a World Heritage Site due to its exhibit o f the most interesting natural regeneration and recovery capabilities among all o f Colombia's national parks (Vergara and Ruiz 2003). Under Law 99 o f 1993, the National Parks Authority (NPA) is the environmental regulatory agency for the areas within the NNPA. 13.17 The total area under effective conservation and protection has been increasing due to the decentralization and organizational strengthening process led by the Colombian Government in order to Table 13.1: The NationalProtected Areas System Protection categories Hectares NationalNaturalParks System(NNPS). 49 areas under five managementcategories. 10,320,865 Civil Society NaturalReserves (RNSC). 205 Reserves.Approximately 324 properties. 111 40,335 are registeredinthe NPAS. 183 reserves are part ofaNationalReserves Network. Territorial ProtectedAreas. 247 areas in46 managementcategories. Includes79 municipal 243,825 areas, 108regionalareas managedbyRegionalAutonomous Corporation, and 17 departmentalareas. RegionalProtectedAreas (without forest reserves). 3,439,452 NationalForestReserves (Law 2 of 1959). 1,371,940 IndigenousTerritories. 30 millionhectares(protectedareasto bedefined). EthnicAfro-Colombian Community Territories. 3 millionhectares(protectedareas to be defined). Sources: WorldBank(2002); DNP (2002). 316 Figure 13.1: National Protected Areas (percent of land) increase the number o f effective management categories and conservation strategies. Law 99 o f 1993 assigns to Autonomous Regional Corporations (CorporacionesAutdnomasRegionales,CARs) the task o f establishing regional protected areas and creating management categories for reserves promoted by civil society, thus promoting active public participation in conservation. CARs also exercise authority in national park buffer zones. Over 200 natural areas are protected under municipal, departmental, and regional conservation categories. These categories include the following: e Private Reserves: The Civil Society Reserves Network (RRSC) represents landowners who, through their own initiatives, provide part or all o f their lands for conservation purposes. In 1993, Law 99 (which created the National Environmental System) officially recognized civil society natural reserves. The NPA estimates that over 200 reserves have been created and are "the most significant private alternative for supporting conservationprocesses." e Forest Protection Reserves and Forest Protection-Production Reserves: 2.1 million hectares are demarcated and possess management plans. An additional 2.8 million hectares are considered Integrated Management Districts, created by Decree 1974 o f 1989, and another 500,000 hectares of land are officially protected by municipalities and departments (UAESPNN 1999). There are also 1.37 million hectares o f "Forest Reserves" created by Law 2 o f 1959, representing about 15 percent o f national lands. 13.18 Furthermore, territories collectively owned by Afro-Colombian andindigenous communities hold significant Conservation and environmental management potential. These groups have traditionally supported conservation objectives through their ancestral natural resource management practices. Indigenousterritories, known as resguardos, comprise 30 million hectares andrepresent 26 percent o f the national territory. Likewise, close to 3 millionhectares (2.5 percent o f the country's area) are collectively ownedAfro-Colombian territories locatedprimarilyinthe Biogeographical Choc6 region (Vergara y Ruiz 2003). Generally, zones o f high ethnic diversity coincide with ecologically strategic regions endowed with highbiodiversity levels. Such is the case with the Sierra Nevada de Santa Marta, the Amazon, the Colombian Massif, and the Biogeographical Choc6. Furthermore, indigenous resguardos overlap 18 protected areas within the NNPS, while Afi-o-Colombian communities overlap 5 such areas. Upon the 317 NPAS's consolidation and pending local communities' expressed interest, some o f these areas may be includedwithinthe NPAS. 13.19 High mountain, or phumo, regions, critical to the regulation o f water resources, span approximately 1.4 million hectares and represent 1.3 percent o f national territory (Hofstede, no date). Buffer zones surrounding protected areas must be effectively incorporated into the NPAS. Preliminary data collected during 2004, in support o f the Regional and Integrated Silvopastoral Approaches to the Ecosystem Management Global Environmental Facility (GEF) Project, underscore the importance o f the linkages between biodiversity andsustainable production systems. Data collected during the Silvopastoral Project and the proposed GEF Andes project are expected to provide informationon the rural productive landscapes that should be included in the NPAS. Environmentally sustainable livelihoods will improve the quality o f life o f buffer zone inhabitants and contribute to social and economic development in these regions, favoringprotected areas' social andeconomic sustainability. 13.20 Although the total landarea inthe parks system is fairly large, the NationalParks system does not do a goodjob o f adequately representing all o f the important habitat types inthe country (Polasky 1996). The national parks are concentrated inthe Andes region with 18 units that include 2 millionhectares. The Orinoquia region, however, has only one park, Parque El Tuparro. The Caribbean coast andmarine areas are similarlyunderrepresented within the NationalParks System. 13.21 Despite the large number o f newly created protected areas, deterioration o f existing protected areascontinues. This can be attributedto large-scale population displacement andcolonization, illicit crop cultivation, lack o f economic alternatives for people inhabiting the parks' surrounding buffer zones, lack o f win-win agreements that provide incentives for the provision o f environmental services, and weak institutional presence. Inadequate land use and the expansion o f the agricultural frontier have also contributedto the occupationo fprotectedareas. 13.22 Poverty and the lack o f economic alternatives generate pressures on protected area conservation. The results o f suboptimal resource use include soil degradation, ecosystem fragmentation, changes in ecosystem structure and functionality, and social and economic conflict over resource privileges. Sixty percent o f the country's territory is used for unsustainable cattle ranching, creating degraded pastures where lands are suited for forests or agricultural use (IGAC 1998). Lack o f benefits to local populations has led individuals and local communities to resist conservation efforts and to perceive national parks in their territories as illegitimate. 13.23 Illicit crop production leads to increasing environmental impact in the country's natural forests and strategic ecosystems, in the following forms: forest clearing to establish such crops, population displacement to vulnerable ecosystems due to the high expectations generated by illicit crop production, the arriving population's expansion o f the agricultural frontier, investment o f the economic surplus generated by illicit crop production in unsustainable cattle ranching, and water contamination from chemicals usedduringillicit crop plantingand processing. 13.24 A lack o f institutional coordination and long-term financial resources and mechanisms to consolidate the NPAS has also affected the scope o f conservation initiatives carried out by national and regional institutions. While the NPA is the environmental regulatory agency in the areas within the NNPS, the CARSexercise their authority in the rest o f national territory, including national park buffer zones. The NPAS legal framework still needs to be defined and its institutional and financial capabilities strengthened in order for it to effectively coordinate public and private conservation initiatives. Such initiatives include those promoted by the NNPS, local andregional protected areas, ethnic territories, and other private sector conservation and sustainable management strategies. Anthropogenic activities and their implications for the connectivity o f the country's protected areas pose challenges that would need to 318 be addressed by public and private sector groups committed to in situ conservation. There have been some advances inthis direction, as described inthe next section. The Policy for Social Participation inBiodiversity Conservation 13.25 As noted, Colombian law created the national parks in 1959.'69Regulations for the creation and administration o f national parks were approved during the 1970s. Those regulations did not provide public participation mechanisms during their process of creation and administration. In addition, these regulations didnot include mechanisms to balance conservation interests with economic anddevelopment priorities. Under these circumstances, the implementation o f conservation strategies with the participation o f local stakeholders becomes a major challenge. 13.26 Although the 1991 Constitution recognizes the right to participate in decisions o f environmental consequence, regulations written before that date remain inplace. Forty-sevennationalparkswere created before 2003 in areas overlapping traditional indigenous, Afro-Colombian, and campesino communities. Although the creation o f the parks affected the economies of those communities because the parks restrictedthe traditional uses o fnaturalresources, there was no compensation. 13.27 In 2002, after a process of wide consultations, the national government approved the Policy for Social Participation in Con~ervation.'~~ This policy seeks to promote the design and implementation of conservation strategies in national parks with the broad participation o f local stakeholders, including indigenous organizations and Afro-Colombian and campesino communities. This policy is not a legal instrument, however, andtherefore is not legally bindingor enforceable. 13.28 Using a case study approach, the following describes the process that led to the creation o f the Corales del Rosario and Alto Fagua Indiwasi National Parks and the mechanisms in place to balance stakeholder interests, before andafter the approval o f the Policy for Social Participation in Conservation. The frnal section presents andanalyzes the information discussed inthe case studies anddraws a series o f lessonsandrecommendations. ' 13.29 In 1959, the Colombian Congress approved Law 02, the main objective o f which was "... promoting the forest economy and protecting the soils, waters and wildlife o f the Nation." This law presented the concept o f national natural parks for the "...conservationo f fauna and flora" that could be created by the Ministryo f Agriculture, with technical support from the Colombian Academy o f Sciences. Consistent with the thinkingat the time, Law 02 o f 1959 made no reference to the rights o f the traditional local communities inthe areas to be declared as national parks, or to their participation inthe processeso f creation andadministration. Economic activities, other thantourism, were prohibitedinthose areas. 13.30 Following the enactment of Law 02 o f 1959, six national parks were created between 1960 and 1968. Although all those parks were then inhabited by indigenous, Afro-Colombian, and campesino communities, and despite the severe restrictions imposed on the use o f their natural resources, no consultations with local stakeholders were conducted. According to Law 02 o f 1959, they were not required. 13.31 Duringthe 1960s and 1970s, the National Institute of Renewable Natural Resources (Instituto de Desarrollo de 10s Recursos Naturales Renovables, INDERENA, created in 1968), the Agustin Codazzi Geographic Institute (Instituto Geogrcj$co Agustin Codazzi, IGAC), and the Natural Resources Institute o f the Universidad Nacional published information on the nature o f Colombia's ecosystems and natural ~~~~ 16' This sectiondraws heavily from a2004 case studypreparedbythe Universidadde Los Andes for this study. 170 Unidadde ParquesNacionalesde Colombia- Politica de Participacih Socialen la Conservacih, 2001. 319 resources in Revista Trianea, Colombia Geogrhjca. Until 1993, the information gathered by those institutions providedthe basis for the declaration o f most o fColombia's nationalparks.17' 13.32 The National Natural Resources Code created the National Natural Parks System (NNPS) in 1974. The creation of this system responded to the view o f the director and employees of INDERENA who believed that national parks shouldnot be perceivedas separate units but rather as parts o f a system, andthat the government shouldadminister themunder coherent andunifiedcriteria.'72 outstandingnatural values of fauna, flora, landscapes; andhistoric, cultural andarcheologicalrelics.. .";to 13.33 According to Decree 2811 of 1974, the objectives o f the NNPS are to "...conserve the "...perpetuate the wild state o f biological communities o f physiographical and biogeographical regions, genetic resources andthreatened species"; andto ``. ..protectnatural, cultural, andhistoric phenomena and others o f international interest to contribute to the preservationo f the common patrimony o f humankind." 13.34 Inaccordance with Law 02 of 1959, the Natural Resources Code made no reference to the rights o f traditional local communities inhabiting areas to be declared national parks or to their participation in their process of creation and administration. Nor did the Code include provisions to secure the considerationo f interests such as regional economic development andsocial equity. 13.35 Decree 622 o f 1977 regulates the administration o f the NNPS in greater detail. This decree prohibits the development o f economic activities inside the areas o f the park, includingwood extraction, fishing, agriculture, cattle ranching, industry, oil production, andmining. However, this regulation notes that "...thedeclaration o f a national park i s not incompatible with indigenous reserves.. .."Consequently, this allows national parks to be created over the traditional territories of indigenous communities. However, as in the case of Law 02 o f 1959 ando f the Natural Resources Code, Decree 622 o f 1977 does not include provisions to ensure the participation o f indigenous communities in the processes o f declaration andadministration o fnational parks. 13.36 The 1991 Political Constitution included a series o f economic, ethnic, and cultural rights (Chapters Iand 11) and the right o f all citizens to participate in decisions o f environmental relevance. In addition, the Constitution stipulates that the use of natural resources in the territories o f indigenous communities must not harm the integrity o f those cultures, and that all citizens have the right to participate in decisions o f environmental relevance. Clearly, prevailing regulations in relation to the creation andmanagement o f national parks are not always consistent with these constitutional precepts. 13.37 Subsequently, Law 99 of 1993 created the National Parks Unit within the Ministry o f Environment with the mandate o f administering the NNPS. Law 99 did not change prevailingregulations for the administration o f national parks, namely Law 02 o f 1959, the Natural Resources Code o f 1974, andDecree 622 o f 1977. 13.38 According to Law 02 o f 1959, the NaturalResources Code, andDecree 622 o f 1977, prior to the creation o f a national park the National Parks Administrative Unit must conduct the necessary scientific studies. Those regulations do not include the participation or representation o f local communities (indigenous peoples, campesinos, fishermen, miners, and so forth) during the process that leads to the creation of national parks. The content of the required studies has not been regulated andthe criteria for the definition o f the park's boundaries have not been established. The required scientific studies must be 17' Interview by Universidad de Los Andes case study consultants with Julio Canizosa, Margarita Botero, and Manuel Rodriguez, former INDERENAdirectors. 17* Interview by Universidad de Los Andes case study consultants with Julio Canizosa, INDERENA's director during 1973-1978 (July 2004, BogotA).). 320 reviewed by the Colombian Academy for Exact Physical and Natural Sciences (Academia Colombiana de Ciencias Exactas Fisicas y Naturales) before the park is formally created by a Presidential Decree. Ifthe areas to be included in the NNPS overlap with indigenous reserves, the relevant studies must be conductedjointly with the Colombian Institute for Agrarian Reform(Instituto Colombiano de la Reforma Agraria). 13.39 Colombia's 462 indigenous reserves (resguardos indigenas) occupy 30 million hectares in approximately 26 percent o f the country (Giugale and others 2002). Twenty-four percent o f the total area o f indigenous reserves overlaps national parks. Thirty-three o f the 49 parks o f that system are inhabited by indigenous groups (Unidad de Parques Nacionales 2001). In addition, there are 23 collective Afro- Colombian territories in approximately 3 million hectares o f the Colombian Pacific Biogeographical region, They correspond to approximately 2.5 percent o f the country's total area (ibid.). Traditional indigenous, Afro-Colombian, andcampesinocommunities inhabit 47 o f Colombia's 49 national parks.173 13.40 However, as noted, Colombian legislation does not include provisions to secure the participation o f these communities duringthe creation andadministration ofthe parks. According to several officials o f the National Parks Unit, none o f the parks that created overlapping traditional territories o f indigenous, Afro-Colombian, andcampesino peoples underwent a consultationprocess with local communities before 2003.'74During 1960-1968 those decisions were taken by the Ministry o f Agriculture, during 1968-1994 they were taken by INDERENA, and during 1994-2002 they were taken by the National Parks Unit and the Ministry o f Environment. The areas to be declared as national parks and their boundaries were autonomously defined by the technical staff o f those institutions, based on their own judgment. In most cases the existence o f a national park within traditional territories took communities by surprise. Incases such as the Catatumbo National Park, which was created in 1989, the communities did not find out or understand that they were part o f a park untilvery re~ent1y.l~' 13.41 The regulations inplace since Law 02 o f 1959, which impose severe restrictions on the economic use o fnatural resources inthe areas o f the national parks, also limit the economic activities o f indigenous communities. In addition, they make no reference to other poor communities (campesinos, Afro- Colombians, and so forth) that have traditionally lived inthe national parks. A strict interpretation o f the prevailing legislation leads to the conclusion that the economic use o f natural resources by these communities, even for subsistence purposes, is illegal.176 Consequently, they cannot benefit form government programs such as agricultural technology transfer and credit. Nor does the prevailing legislation include mechanisms to compensate local communities affected by the creation o f national parks. 13.42 Implementation o f conservation strategies in protected areas, created without takinginto account the social and economic realities o f the local stakeholders, seems challenging. At the heart o f this challenge are the very severe restrictions that Colombian law has imposed on the economic use o f natural resources inside the limits o f national parks. 173 The exceptions are GorgonaNational Park (an islandon the Pacific coast) andthe Chiribiquete National Park in the center o fthe Colombian Amazonian Region. 174 Interview by Universidadde LosAndes case study consultants with Carlos Acosta, advisor to the director o f the National Parks Unit responsible for coordinating participation processes with Afro-Colombian and indigenous communities (Bogoti, March2004). 17' Interview of Universidad de Los Andes case study consultants with Carlos Acosta and Lavinia Fiori, Coordinators o f the Environmental Component o f the Dutch Institutional Strengthening Program of the National ParksUnit(Bogoti, March2004). 17` Interview of Universidad de Los Andes case study consultants with Eugenia Ponce, expert on national park regulations. 321 13.43 Several conflicts have arisen between the NNPS and indigenous, Afro-Colombian, and cumpesino communities whose territories overlap national parks.'77 Those conflicts arose fkom the restrictions imposedby Law 02 o f 1959, the Natural ResourcesCode o f 1974, andDecree 622 o f 1977, in relation to the economic and commercial use and exploitation o f natural resources in national parks. These communities, however, have not used the judicial system to defend the economic use o f their traditional territories. The limiteduse o f the judicial system by poor communities has beenrelatedto their lack o f familiarity with their legal rights and their lack o f access to the judicial system (Quintero and Iguarb2001). 13.44 Some o f these conflicts have occurred with fishing communities in the Tayrona, Salarnanca, Flamencos, and Corales del Rosario National Parks on the Caribbean Coast, and in the Utria and Sanquianga National Parks on the Pacific Coast, the latter created with over 10,000 inhabitants o f traditional Afro-Colombian communities. There have also been conflicts with agricultural communities in the areas o f the Chingaza, Los Nevados, and Galeras National Parks in the Andean Region and with minersand indigenous communities inthe CahuinariNationalPark inthe Amazon. 13.45 Testimonies o f these conflicts have been recently documented in films and interviews with community leaders.'78Inthese testimonies, community leaders have argued that these parkswere not only created overlapping their traditional and sacred territories, but that measures and norms adopted by the National Parks Unit affected them economically because they restricted their traditional use and commerce o f naturalresources. More recently, indigenous and Afro-Colombian communities have argued that they are also authorities, vested by law, to managethese territories, with attributes similar to those o f the g~vernment.'~' 13.46 In contrast with the national park's legislation, which predates the 1991 Constitution, the Colombian legislation relative to the rights o f indigenous communities underwent important developments during the last decade. The 1991 Constitution recognized the right o f indigenous communities to organize autonomous institutions for the administration of their traditional territories and public affairs. In 1993, the Colombian Government approved Convention 169 o f the 76" meeting o f the International Labor Organization held in 1989. This Convention protects the ethnic rights o f indigenous communities, including their territorial rights and traditional cultures. By Decree 1088 o f 1993, the government regulated the creation o f Associations o f Indian Reserves and o f Traditional Indigenous Authorities. These are autonomous forms o f government recognizedby the Colombian Government. They can undertake social programs with resources transferred by the national government. Currently, indigenous authorities claim the same authority as the NationalParks Unit inthe overlapping territories.'" 13.47 The case o f the extensiono f the Corales delRosario NationalPark is a typical example. Since the mid-1950s, the islands o f the El Rosario archipelago inthe Colombian Caribbean have been a recreation site for affluent visitors from Barranquilla, Bogotk, Cali, Cartagena, and Medellin.'*' Its surrounding 177 Interview of Universidad de Los Andes case study consultants with Sandra Valenzuela, legal advisor to the director of the National Parks Unit; Carlos Acosta, Coordinator of Participation Processes; and Lavinia Fiori, Coordinator o f Environmental Education and Communication for the Dutch Institutional Strengthening Program of the National ParksUnit (Bogota, March2004). 17' Interview of Universidad de Los Andes case study consultants with Lavinia Fiori, Coordinator of the Environmental Component of the Dutch Institutional Strengthening Program of the National Parks Unit, who has filmedthese testimonies(Bogota, March2004). 17'Interview of Universidad de Los Andes case study consultantswith Arregocks Conchacall, Cabildo Gobernador and leader o f the Kogui Indigenous group. This indigenous group inhabits the Sierra Nevada of Santa Marta which includes two national parks (Santa Marta, April 2004). '" Interviewwith the Legal Group o fthe NationalParksUnit (Bogotb, March2004). Interview of Universidadde Los Andes case study consultants with Clara Sierra, manager o f the park during 322 waters have been a fishing area for traditional communities o f the region. In May 1977, the board o f directors o f INDERENA created the Corales del Rosario National Park. Today there are 120 vacation homes inthe islands o f the archipelago. The park has an area of 19,500 hectares over the coral reefs and other marine ecosystems that surround the 30 small islands o f the archipelago. However, the park included only 2 o fthe 30 islands,; therefore it is largely anunderwater park.'" 13.48 The San Bernando archipelago is located south o f the El Rosario archipelago and includes seven small islands, their associated mangroves and coral reefs, and other underwater ecosystems (Diaz 1998). The area has been traditionally inhabited or visited by local Afro-Colombian communities o f fishermen (Sierra 2002) whose main traditional economic activity has been lung diving for lobsters andsnails. As in the case o f the Rosario Islands, the beauty o f the San Bernardo islands also attracted the interest o f affluent vacationers who, to date, have built 60 houses on those islands. The San Bernando archipelago was not originally included inthe national park created in 1977. 13.49 The San Bemardo Islands and their associated coral reefs and marine ecosystems have suffered severe deterioration since the beginning o f the 1980s (Diaz 1998). The bleaching o f coral reefs has extended significantly (Ramirez, Miranda, and Viiia 1994), and overfishing diminished the rates o f capture o f some species (Mora 1994). By 1995, fishing communities o f the San Bernardo islands knew that the size o f the fishingstocks was declining andthat the fishingeffort had increased with time.'83They attributed the growing scarcity o f fish to overexploitation by commercial fishing boats from Cartagena, the closest city on the mainland. 13.50 Ecologicalinformationgathered by the NationalParksUnitin 1996 provided evidence that the El Rosario and San Bernardo archipelagos are not independent. According to that information, there are functional relations between the two archipelagos and the conservation o f both areas is important for the maiiltenance o f their ecological processes. Aware o f the deterioration process o f the San Bernardo archipelago and o f its ecological importance, the Minister o f the Environment decided to extend the area o fthe Corales del Rosario NationalPark to include the SanBernando archipelago. 13.51 The new extended park was created in December 1996 during the inauguration ceremony o f the new headquarters o f the Ministryo f Environment. As inthe case o f the park's original islands (ElRosario islands), the decision was based solely on ecological information. N o social evaluation or consultation preceded the creation o f the new extended park (established by Decree 1425 o f 1996). As in the case o f the El Rosario islands, the decision negatively affected the traditional rights o f the local fishing communities. The new extended park was calledthe Corales del Rosario and SanBernardoNationalPark. Its original area was increased from 19,500 hectares to 120,000 hectares, including the original areas o f the Corales del Rosario National Park and the associated underwater ecosystems o f the San Bernardo Archipelago. It also includes two o f the seven emerged islands o f this ar~hipe1ago.l'~Close to five years passedbefore the traditional inhabitants o f the San Bernardo archipelago gradually became aware o f the existence o f a nationalpark intheir traditional fishingareas.185 13.52 The Ministry o f Environment, through its National Parks Unit, has jurisdiction over the areas included inthe Corales del Rosario and San Bernardo National Park-that is, over 4 o f the 37 islands o f 2002-2004 (Bogod, April 2004). lS2 These two islands, El Tesoro and El Rosario, were included as a part of the national park by INDERENA Agreement 093 of 1987. Interviewsby Universidad de LosAndes case study consultantswith Clara Sierra and Clara Osorio, managersof the parkduring 2002-2004 and 1992-1994, respectively(Bogod, April 2004). 184These are the islands ofMaravilla andMangle. 18' Interviews of Universidad de Los Andes case study consultants with Clara Sierra and with Clara Osorio, managersofthe parkduring 2002-2004 and 1992-1994, respectively(BogotB, April 2004). 323 the two archipelagos and their underwater ecosystems. The National Parks Unit does not have the authority to control the activities that take place on the 33 remaining islands. The municipality o f Cartagena is responsible for the control o f construction activities that take place on those islands. 13.53 To this day, the presence of the National Parks Unit in the San Bernardo archipelago has been "limited and sporadic."lS6 It was not until 2000 that the National Parks Unit sent personnel to this archipelago. Today four people are assigned to the San Bernardo archipelago. The deterioration processes that motivated the creation o f the new extended park are still in place:lS7overfishing, fishing with explosives by native communities, andillegal constructiono f the houses anddocks on the islands. 13.54 The prevailing tensions between the National Parks Authorities in parks such as Utria, where native Afro-Colombian communities occupied the park to protest their lack o f participation in the park's creation and management in 1994, ledthe NationalParks Unitto rethink its strategy with communities.'88 A factor that facilitated the development o fa new policy for national parkswas that JuanMayer andJuan Carlos Riascos, Minister o f the Environment andDirector o f the National ParksUnit,respectively, during 1998-2002, were traditional leaders o f the environmental movement in Colombia. They had directed important national nongovernmental organizations (NGOS)'~~ and had developed community work in protected areas. Their experience with local communities inprotectedareas allowedthem to have a clear vision o f the role o f socialparticipation inconservati~n.'~~ 13.55 The Policy for Social Participation in Conservation was approved in August 19991g1by the National Environmental Council.'92 The Council, headedby the Minister o fthe Environment, includes the representation o f different economic sectors, including the representatives o f minority groups, and is responsible for the approval o fnationalenvironmental policies.'93 13.56 The policies that are approved by the National Environmental Council do not have legal status and are consequently not enforceable or legally binding, It is possible that the policies approved by the Council are not always in harmony with the content o f prevalent regulations, and in some cases, the implementation o f those policies may require changes in prevalent regulation or the approval o f new regulations. In fact, this i s the case o f the Policy for Social Participation in Conservation, which gives highrelevance to community participation in conservation while the prevalent national park regulation completely ignores this issue. The fillimplementation o f this policy would require regulatory changes to secure community participation inconservation. hid. Interview of Universidadde Los Andes case study consultants with Clara Sierra, manager of the park during 2002-2004 (Bogotl, April 2004). "'Interview of Universidadde Los Andes case study consultants with Juan Carlos Riascos, director ofthe National ParksUnit(January 2004). Mr. Mayer had been director of the Prosierra Foundation, which developed activities in the Sierra Nevada National Park. Mr. Risascoswas director of Fundaci6nHerenciaVerde, which developed community conservation activitiesinthe buffer zones ofthe LosNevadosNationalPark. I9OInterviews of Universidad de Los Andes case study consultants with Juan Mayer and Juan Carlos Riascos (Bogoki, July 2004). 19`"Politica de Participaci6nSocialen laConservaci6n," 2001, Unidad deParques Nacionalesde Colombia. 19'CreatedbyArticle 13, Law 99 of 1993. 193 Council members include representatives of municipal and regional governments.(Gobernaciones), and of indigenousand Afro-Colombian communities, producers' associations (agricultural, mining, forest, manufacturing) and exporters, NGOs, universities and the Ministries of Agriculture, Social Protection, Mines and Energy, Education, Transportation, Defense, ForeignTrade, andNationalPlanning. 324 13.57 The Policy for Social Participation in Conservation was the result o f a wide and democratic process o f consultation with government officials, NGOs, indigenous communities, members o f Congress, multilateral agencies, and the national government. The active participation o f indigenous communities in the consultation processes ledto the approval o f this policy (Correa 2002). This policy i s more consistent with the 1991 Constitution than the existing national park regulation on matters o f social participation. As indicated, however, the Policy for Social Participation in Conservation does not have legal status and is not enforceable. It contains a set o f good practice principles for the consultation with the local community on diverse issues related to a protected area. In contrast, the prevalent traditional national park regulationsremain enforceable. 13.58 The Policy for Social Participation in Conservation seeks to protect the areas o f the NNPS by designing and implementing conservation strategies with the broad participation of local stakeholders, including indigenous organizations and Afro-Colombian and campesino communities. "This new policy is based on the recognition that there is a close and inseparable interdependence betweenthe conservation o fbiologicaldiversity andthe protection o fthe cultural wealth o f the nation."'94 13.59 More than defining specific strategies for conservation, the Policy for Social Participation in Conservation is an agreement on the principles to build and adjust these strategies at the local level (National Parks Unit 2001). The policy includes a mix o f objectives that seek to strengthen the capacity o f social organizations and communities to participate in the implementation o f conservation strategies. It also aims at strengthening the institutional capacities o f the National Parks Unit and at increasingpublic awareness regarding the social value o f national parks at the local and national levels. The coordinated implementation o f the policy is under the responsibility of the National Parks Unit o f the Ministry o f Environment. 13.60 The Policy for Social Participation in Conservation does not include provisions related to the criteria for the selection o f new national parks. It indicates that, in all cases, local stakeholders should participate inthe selection o f the areas and intheir administration. Since this policy is not legally binding, however, the right o f local stakeholders to participate in the conservation o f national parks is not guaranteed. Only a reform o f prevalent regulations, mainly the NaturalResources Code approved in 1974 andDecree 622 of 1977, could guarantee suchparticipation. 13.61 AAer the Policy o f Social Participation in Conservation was approved, two new areas were added to the National Parks System through consultation processes and agreements with local indigenous communities. Among these was the Alto Fagua Indiwasi National Park, created in 2002 after a broad participation process with local indigenous communities (Zuluaga and others 2002). In fact, the park was created inresponseto an initiativeby those communities (Jimknez 2002). 13.62 Since the National Parks Unit began to implement the Policy for Social Participation in Conservation, more than 76 agreements have been reached with local communities throughout the These agreements seek to define management schemes with local and native communities, develop Life Plans (Planesde Vidu) o f indigenous communities ina simultaneous process with the Parks' Management Plans, create Consultative Boards for different parks with the participation o f communities and the National Parks Unit, develop sustainable economic alternatives for communities, and, in some cases, define internal rules regarding the use o f natural resourcesby comm~nities.'~~ 194Interviewof Universidad de Los Andes case study consultantswith Juan CarlosRiascos, director of the National ParksAdministrationUnitduring 1998-2004 (Bogota, December2003). 19'Interviewof Universidad de Los Andes case study consultantswith Carlos Acosta, advisor to the director of the NationalParksUnit on issues relatedto participation of local groups (Bogoti, February2004). `96Interviewsof Universidadde Los Andes case study consultantswith CarlosAcosta, advisorto the director of the 325 13.63 Implementation o f this policy has been effective in securing greater support from local and native communities inthe conservation and sustainable management o f different parks, and for striving to solve historic conflicts with local stakeholders including indigenous groups, and the Afro-Colombian, fishing, andcumpesino communities. Some examples include: Inthe Corales delRosario National Park, traditional Afro-Colombian fishing communities are now working with the National Parks Unit on restricting overexploitation of lobster and other fish stock, and promoting the participation o f local communities in ecotourism. As a result o f this participatory management strategy, during 2001-2002 there was a 70 percent reduction in the capture o f undersized lobster^.'^' Inthe Galeras National Park, the park administrator recently recognizedthat peasant communities, which used to receive park employees with machetes before the implementation o f the policy, are now working with the Unit in the development o f sustainable agricultural systems in buffer zones. Since 2001 forest fires have not occurred inthose sectors o f the park where 1,200 families work with the Unit."' Incontrast, in those sectors of the park where the National Parks Unit is not yet working with communities, forest fires are frequent. Several parks, including the Cahuinari andthe Alto Fragua Indiwasi, in the Amazonian region, have co-management schemes with indigenous communities. In the Cahuinari National Park, where the Bora-Mirafia community leaders traditionally opposed the creation of a national park on their territories, there i s currently a consultative body that makes joint decisions regarding the park's management. In this case, the indigenous communities have undertaken zoning processes and have constructed maps where they have "...helped the National Parks Unit to understand what we have always thought o f our territorie~."'~~ In this case, the traditional indigenous authority oversees compliance with fishing quotas and applies sanctions when a member o f the community defies the established rules. In2003 the indigenous communities o f this park drove away 23 illegal (Brazilian- Colombian) gold mining operations (drugus). This occurred in coordination of the local staff o f the NationalParksUnit, andwithout the intervention o fthe armed forces. In 2003, in the Amacayacu National Park, located in the Amazonian flood plains, the indigenous communities that inhabit the area confiscated a shipment with 28,000 pieces o f precious wood that had been illegally extracted from the park. This was the result o f the coordinated and agreed actions betweenthe NationalParks Unit andlocal 13.64 Although in several parks the participation o f local communities in conservation efforts has increased, most o f these communities derive their livelihood from the economic use o f the parks' natural resources. As indicated, a strict interpretation o f Law 02 o f 1959, o f the Natural Resources Code, and o f Decree 622 o f 1977 would lead to the conclusion that, in most cases, such economic activities are National Parks Unit on issues related to participation o f local groups with the National Parks Unit and current director of the Dutch Program for Parks in the Pacific, and with Lavinia Fiori, Coordinator o f Environmental Education for the Dutch Program for Institutional Strengtheningo f the National Parks System(Bogotl, April 2004). lg7Interview o f Universidad de Los Andes case study consultants with Lavinia Fiori who coordinated a project funded by The Nature Conservancy with native communities in the islands o f the El Rosario National Park (Cartagena, February 2004). 19'Interview of Universidad de Los Andes case study consultants with Nancy Builes, director of the Galeras National Park (Bogoth, February 2004). 199Interviewof Universidadde LosAndes case study consultantswith Lavinia Fiori of the NationalParks Unitina documentary currently under production. *O0Interview o f Universidadde LosAndes case study consultantswith Juan Carlos Riascos, director o fthe National ParksUnit(Bogoth, December 2003). 326 illegal.z01For these regions, the Policy for Social Participation has concentrated sustainable production processes andlandzoning inbuffer zones o f the national parks. 13.65 Toward the southeasternpart o f Colombia, in an area where the Andes descend rapidly from the cloud forest to the Amazonian forests, there is a region o f large biological diversity (Etter 1998). This region has traditionally been inhabited by various indigenous groups o f the Ingano family. The biological andculturalvalues ofthis regionare "...threatened by severeprocessofcolonization, deforestation, [and] illicit crops ..." that could "...lead to severe environmental deterioration and to the disappearance o f indigenous cultures" (Zuluaga andothers 2002). 13.66 The 1991 Constitution and Law 21 o f 1991 recognized the organizations o f indigenous communities as public authorities. As such they had to design andundertake "Development Plans." The "Tandachiridu Inganocuna Association of IndianReserves" o f the Inganos adopted their plan in 1998. Insteado fcalling it a "Development Plan," however, they preferredto call it a Life Plan (Plande Vida),Zo2 andit has three components: conservation o ftheir ancestral territory andits resources, protection o f their cultural identity andtraditions, andstrengthening o ftheir traditional medicine. 13.67 Since 1983, Mr. Germin Zuluaga, a medical doctor and current director o f the Ethnobiological Institute-an organization dedicated to promoting the conservation o f traditional territories andmedicinal plants-has maintained close relations with the Ingano communities as he investigated and published information related to their medical traditions (Zuluaga 1994). H e communicated the interest o f the Ingano communities to secure the protection o f their traditional territories to Juan Carlos Riascos, then- director o f the National Parks Unit. This initiated conversations and a negotiation process, which led to the creation o f the Alto FraguaIndiwasiNational Park. 13.68 To conduct the technical studies required by law, the Colombian Von Humboldt Institute for Biodiversity, the National Parks Unit, and the Tandachiridu Inganocuna Association conducted an evaluation o f the biologicalresources o f the L a Fraguaregion during 2000 (Humboldt Institute and others 2001). Those studies reported that there were extensive andwell-preserved forests with little intervention inthat region. Their indexes of biological diversity were among the highest ever reported inColombia. Threatened species and potentially new species were found. A high diversity o f insects and birds and a highfrequency o f endemismzo3were reported. The importance of the biological andecological resources o f the area was related to its geographical position in the transition between the highlands o f ,the Andean region and the low Amazonian forests. The Humboldt Institute, the National Parks Unit, and the Tandachiridu Inganocuna Association (200 1) complemented their biological evaluation with a cultural survey o f the area, and identified sacred places, traditional paths, and areas where medicinal and sacred plantsare endemic. 13.69 Through those studies, the Inganos and the national government found common reasons to protect the natural and biological resources o f the La Fragua region. In the Conservation o f L a Fragua, the Inganos saw an opportunity to advance their Plan de Vida for the reconstruction o f their culture. An important element of the Planis their increased control over the traditional forest territories, where some of their medicinal and sacred plants are endemic. There were neither campesinos nor other communities inthe territories includedwithintheboundaries ofthe Alto FraguaIndiwasiNationalPark, nor permanent dwellings o f the Ingano communities within the area, and the Inganos did not develop agriculture, economic, or any other productive activities inthe area, andwere interested inpreventing the advance of '01 Interview o f Universidad de Los Andes case study consultants with Eugenia Ponce, expert in national parks regulations. *02 Interview o f Universidadde LosAndes case study consultants with GennhZuluaga (BogotB, December 2003). '03 Biological species found only within aphysically narrow habitat. 327 colonization. Consequently, they had little or nothing to give up with the creation of the national park. Those territories, however, were visited regularly by the members of the Ingano communities, because they include sacred sites and protect endemic plants that are part of their traditional medicine. The government has not granted formal property rights (resguardos)to the Ingano communities over those territories, but the Ingano have gained something becausethey assuredthe more active involvement of the Colombian Government in the protection of a region that they consider strategic for the conservation of their culture. ClimateChange 13.70 Colombia's contribution to global greenhouse gas (GHG) emissions is less than 0.3 percent; its C02emissions in 1990 were the equivalent to 1percent o f U.S. emissions and 5 percent o f Japan's, and were significantly less than other Latin American countries such as Mexico and Argentina. For example, Colombian COz emissions inthe transport sector are about one-fifth as much as the comparable emissions of Mexico and about two-thirds as much as those of Argentina. Figure 13.2 compares total C02 emissions inColombia with those of selected developed anddevelopingnations. In2002, the NationalInventory of GHGs was drawn up by IDEAM covering 1990-1994. Table 13.2 displays emission estimates by greenhouse-producing gas andby sector. Figure13.2: TotalCOzEmissionsinColombia Comparedwith Other Countries Total National Emissions of C02,1990 (BillionTons) 5 sii 4 v) eg1 0 Source: Colombia's FirstNational Communicationto the UNFCCC. Table 13.2: Colombia'sGHGEmissionsbyGas and Sector, 1994 Emissions (gigagrams of CO2 equivalents) Sectors co2 CH4 N O Total Energy 55,35 1.7 5,972.4 476.6 61,800.7 Industrialprocesses 5,212.3 8.2 77.5 5,298.0 Agriculture 34,3 19.5 27,126.6 61,445.1 Land-usechange and forestry 16,540.0 88.7 9.0 16,637.7 Waste 4,601.4 625.0 4,686.4 Total 77.103.9 44,450.1 28.3 13.7 149,867.8 ~~ Source: IDEAM. 328 13.71 Overall, Colombia emitted 129.4 million gigagrams of GHGs (expressed as C02 equivalents) in 1990. In 1994, emissions rose to 149.9 million gigagrams (also expressed as C02equivalents), an increase of about 16 percent over the four-year period. In both 1990 and 1994, emissions from the energy and industrial process sectors accounted for almost 45 percent of total emissions, mostly in the form of0 2 .In 1990, emissionsfrom the agricultural sector accounted for almost 43 percentof total emissions, inthe form of methane (CK) and nitrous oxide (N20).In 1994that proportion fell slightly to 41 percent. The landuse change andforestry sector accounted for 9.3 percent of total emissions in 1990, almost entirely inthe form of C02. In 1994, that proportion rose to 11.1 percent. The waste sector accounted for the remaining 3 percentof emissions, inthe form of C K andN20 .In 1994, the rateof capture (sequestration) inColombia was almost 40 times greater thanthe annualemissions. 13.72 Colombia adoptedthe UnitedNations Framework Convention on Climate Change (LJNFCCC) in 1992andratifiedit onMarch2, 1995. Underthe Convention, Colombia agreedto conduct an inventory of its contributions to global warming, an initial assessment of domestic vulnerabilities to climate change, and a preliminary examination of policy options for both adaptationand mitigation. The Convention also established an ongoing process for developing and updating international commitments through regular Conference of the Parties assemblies. 13.73 In December 1997, Colombia signed the Kyoto Protocol, which establishes national emission targets for developed country signatories and several incentives for international cooperation to promote cost-effective GHG abatement inthe developing world. Among the incentives is the Clean Development Mechanism (CDM), which i s designed to generate both cost-effective GHG reductions and sustainable developmentbenefits for host developing countries. 13.74 Pursuant to its obligations under the LJNFCCC, Colombia prepared its First National Communication (March 2002). The First Communication identified potential vulnerabilities to climate change across the country, including coastal zones, water resources, high plateau zones, glaciers, and other ecosystems, soils, andlandaffectedby desertification, vegetationcovers, and agricultural andhealth impacts. Currently, the SecondCommunication is nearing completion. Colombia has also taken steps to organize a rangeof domestic activities to address issues relatingto bothmitigation andadaptation. 13.75 The First National Communication describes economic opportunities in a number of sectors. In the forestry products sector, this includes the evolving market for C02 sequestration credits. The First NationalCommunication also indicatesa capacity for expansioninrelatively high-value products such as cocoa, exotic oils, flowers, processed food, and shrimp breeding. To assess the nation's potential vulnerability to climate change and the opportunities for adaptation, Colombia has undertaken a number of broad-ranging scientific, economic, and engineering studies. Individual analyses focused on impacts associated with sea-level rise, desertification, vulnerability of the hydrological regime, vulnerability of highmountain ecosystems, andimpactson agriculture andon humanhealth. 13.76 Since 1994 Colombia has undertaken a number of actions to reduce GHG emissions, and has taken advantage of the CDM established by the Kyoto Protocol. The principal goal of the CDM is to support project-based GHG reductions in developing nations to be transformed into Certified Emission Reductions (CERs). Inturn, these CERsbecomeavailable to countries or companiesas credits that canbe used as a means of meeting individual Kyoto emission control commitments. Because many abatement opportunities are less expensive in developing nations, the CDM can help reduce the overall cost of achieving globalGHGreductions. 13.77 By April 2005, four projects were well along inthe developmentpipelineinColombia: Jepirachi (wind power), Aqua Fresca (small hydrohenewables), La Vuelta and La Herradura (large hydro), and 329 TransMilenio (transport). In addition to the projects reported by CDM Watch, two others are also under development: Amoya (run-of-river hydro) andFuratena (energy 13.78 The Jepirachi Wind Farm project was developed by the utility Empresas Ptiblicas de Medellin (ESP). The ESP signed an agreement with the PrototypeCarbonFund(PCF) to sell 800,000 tons o f GHG emission reductions from the 19.5 megawatt (MW) Jepirachi Wind Power Project, inthe Department of Guajira. This is the first project to be carried out in Colombia within the C D M framework. Once completed, it is expected that the 15 windmills will deliver 68.3 gigawatt (GW) hours per year to the national grid. Over a 21-year period, the project will reduce emissions by 1.168 milliontons. The PCF has agreed to pay a premium o f US$0.50 per ton o f emission reductions upon implementation o f the plan. This purchase agreement contains a clause that lays out the conditions under which the premiumwill be paid, namely upon delivery o f the emission reductions andupon verification that the social plan has been implemented. 13.79 The L a Vuelta and L a Herradura project is designed to harness the capacity of L a Herradura River by means o f two subprojects in a chain (La Herradura and L a Vuelta). With a total installed capacity of 31.5 MW, the project will improve electricity service in the west o f Antioquia Department, contribute to regional development, improve security by means o f distributed generation, and reduce C02 emissions. The Empresas Ptiblicas de Medellin i s the developer. The project will generate revenues o f about US$200,000 peryear for the municipalities inthe area. 13.80 The Agua Fresca Hydroelectric Project is a small-scale run-of-river generating facility that aims to generate 420,200 Certified Emissions Reductions (CERs) in the first seven years o f operation. It is expected that 208,000 CERs will be generated by 2012. Participants include Aguas de la CabaAa Generadora Unibn SA, and Vu TechBouvier Hydro Empresas Publicus de Medellin. 13.81 The Furatena Energy Efficiency Project will support improvements through the use o f improved high-efficiency burners at about 120 small family-owned plants, enabling them to process panela (raw sugarcane juice) into molasses (an intermediate stage inpanela). This improves energy efficiency and enables the communities to use bagasse2" as fuel instead o f old tires. Total project cost is estimated to be US$l million. Farmers andthe town will provide20 percent o f the equity. The balance is to be securedby the Fondo para el Financiamiento del Sector Agropecuario (FINAGRO). A contribution from the Community Development Carbon Fund i s sought for about US$0.7 million over 14 years. Expected emissionreductions are about 127,000 tons of C02 equivalent. 13.82 Beyond these projects, the Colombia Climate Change Office reports that eight additional projects for reduction andsequestration of GHGs were inthe pipeline as o fMarch2004. Inaddition to the specific project activities reported above, other activities are also underway to promote GHG abatement and sequestration. For example, a report issued by Deutsche Gesellschaft f i r Technische Zusammenarbeit (GTZ) proposes a method for formulating CDM projects and preparing a generic portfolio of CDM- eligible projects for Colombia's energy sector. 204The Amoya River run-of-river power generation facility involves construction o f a 78-megawatt run-of-river facility on the Amoya River to replace existing generation sources. The project developer is HIDROGER S.A. E.S.P., a subsidiary o fGeneradoraUni6n S.A. E.S.P. C02 mitigation is expectedto be 1.87 million tons by 2012 and 2.69 million tons by2019. *05Biomass as a by-product o f sugarcane production. 330 Ozone Depletion 13.83 The ozone layer shields the earth from ultraviolet (W)radiation from the sun, serving as a shield at the stratosphere level. Chlorofluorocarbons (CFCs), chemical substances used particularly in refrigerators, freezers, air-conditioning equipment, aerosols, and plastics, are the most depleting substances o f the ozone layer. Although 90 percent o f global emissions are generated in industrialized countries o f the northern hemisphere, they are displaced by the wind to the southern hemisphere during springtime. The U.S. Environmental Protection Agency (USEPA) has stated that every 1percent decrease inozone couldresult ina 2 percent increase inskincancer, andinrelatedhealthproblems, particularly in countries inthe Southern Hemisphereclose to the Antarctic. 13.84 Following the discovery o f the Antarctic ozone hole inlate 1985, governments recognized the need for stronger measures to reduce the production and consumption o f ozone-depleting substances (ODs). To this end, the Montreal Protocol gn Substances that Depletethe Ozone Layer was adopted in 1987. The Montreal Protocol 13.85 Colombia ratified the Montreal Protocol in 1989 and it was then approved by Congress through Law 29 o f 1992. Colombia's participation inthe Protocol was defined by the Country Program submitted to the Multilateral Fundon January 18, 1994. The Country Program Document assessed the consumption levels o f ODS in different industrial sectors, and included the design o f an Action Planto phase out the consumption o f these substances. Simultaneously, the government established an implementing unit, the Ozone Technical Unit (UTO). 13.86 Total consumption o f ODS in Colombia represents less than 0.45 percent o f global consumption, According to the Country Program, the most significant levels o f ODS consumption were results o f domestic, commercial, and industrial refrigeration maintenance, with 43 percent o f the total, followed by the producers o f commercial refrigeration (16 percent), foams (12 percent), and domestic refrigeration andhalonconsumption(11percent each). Implementation of the Protocol 13.87 Although its contribution to this global problem is minimal, Colombia has made significant advances and has become one o f the leading countries in the region in eliminating ODs. Colombia is committed to a gradual elimination o f ODS with respect to its baseline, with a scheduled reduction in ODS imports o f 50 percent by 2005,85 percent by 2007, and 100 percent by 2010. To fulfill its voluntary commitments, the UT0 has designed a National Elimination Plan based on CFC substitution in the commercial refrigeration sector, CFC reduction in the maintenance sector, and elimination o f halon imports. 13.88 Colombia reached a 60 percent reduction o f ODS in 2005, beyond the agreed commitment o f 50 percent. Since 2001, vehicular assembly in Colombia is done without using CFCs for air conditioning, and there is no reported use o f halons andaerosols. In 1998 the country implemented a manufacturing standard for household and commercial refrigerators. Today, 100 percent of household refrigeration equipment and 90 percent o f commercial refrigeration have been reconverted. In2003 a second phase of the NationalPlan totaling US$4.5 millionwas submittedandapprovedbythe Executive Committee to be carriedout by 2010. 13.89 External assistance has been provided by the United Nations Development Programme, the UnitedNations Environment Programme, the United Nations Industrial Development Organization, and the World Bank. Since the creation o f the UT0 in 1994, 51 industry projects have been approved to eliminate ODs. Nearly 70 percent o f the resources have been assigned to individual projects in large 331 companies inthe refrigeration and polyurethane foam sectors, followedby umbrella projects insmall- and medium-size companies with similar productive processes. ConclusionsandRecommendations Biodiversity 13.90 Most national parks in Colombia were selected based solely on ecological considerations. Other factors such as the cultural diversity, traditional productive processes, economic expectations, and property rights o f their inhabitants were not taken into account, nor were broader considerations such as regional and economic development. 13.91 Decisions on creating Colombia's national parks have beenpromptedby recommendations o f the technical and scientific staff o f the different institutions that have been responsible for administering the parks over the years. Other stakeholders at the local, regional, and national levels have not been able to express their views regarding the creation o f these protected areas. Consequently, most o f Colombia's national parks have not resultedfrom balanced andequitable agreement processes. 13.92 The creation o f national parks by the government, without taking into account local economic, cultural, and social realities and expectations, has been detrimental to the rights o f local stakeholders. Protected areas legislation, which is still in effect, has severely limited the use o f traditional production systems and natural resources by local inhabitants, allowed for parks to be created without compensation, andmade many traditional economic activities illegal. 13.93 The implementation o f conservation plans in protected areas that were created based solely on ecological information, ignoring social and economic local realities and broader regional and national priorities, poses significant challenges. At the local level those challenges derive from the very severe restrictions that Colombian law has imposed on the economic use o f natural resourceswithin the limits o f the national parks. 13.94 To harmonize national parks regulations with the 1991 Constitution, the Universidad de Los Andes (2004) has suggested a potential amendment o f Law 02 o f 1959, the Natural Resources Code o f 1974, and Decree 622 o f 1977. Inthis context, future regulations could ensure the effective participation o f all relevant actors and interests at the local, regional, and national levels. In addition, special consideration might be given to the inclusion o f the most vulnerable stakeholders (instead o f being limitedto the indigenous communities) intheseprocesses. 13.95 Greater involvement o f local stakeholders through application o f the Policy for Social Participation inConservation has already begun to show positive results, even thoughthis Policy has only recently been applied. Since the adoption o f this policy in 1999, several agreements have been reached between the government andthe traditional communities o f the national parks. These agreements include the creation o f coordinating mechanisms for the conservation and sustainable economic use o f the protected areas. The support and involvement o f local communities in the implementation o f conservation strategies have increased in several parks. This is true even in those cases where there had been conflicts in the past between local communities andthe responsible governmental agencies (UniversidaddeLosAndes 2005). 13.96 Since the Policy for Social Participation in Conservation does not have legal status and i s contradictory to prevailing regulations, a reform o f the existing legal framework might align current regulations and the Policy for Social Participation in Conservation. Future reform o f the regulatory framework might take into consideration the good practice principles o f that policy and fully recognize the constitutional rights o f the local campesino, indigenous, and Afro-Colombian communities. A 332 reformed regulatory framework should also ensure the equitable participation o f all relevant actors, including the most vulnerable and the poor, in decisions related to the conservation and economic use o f protectedareas (ibid.). 13.97 Although an Intercultural Coordination Committee was created for administering the Alto Fragua Indiwasi National Park, and for preventing and addressing potential conflicts between indigenous communities and the national government, no provisions have been made to deal with the potential conflicts that could arise with the campesino communities that are colonizing and advancing with forest clearings toward the NationalPark. Future regulations mightalso consider includingprovisions to prevent and to deal with those potential conflicts (ibid.), and might include development o f institutional mechanisms to prevent and solve conflicts between conservation interests and other social priorities such as regional, social, and economic development (ibid.). 13.98 Future regulations might consider efforts to define, with greater precision, the criteria for the selection and delimitation o f national parks, the conditions that justify their creation, the consultation processes required, and the coordination mechanisms for their administration. Those regulations might consider ensuring that in the process o f creating a national park and in the definition o f its boundaries, special consideration is given to the potential implications for regional andlocal economies. Inparticular, this might be the case when poor communities are involved. Future regulations might also consider ensuring that fair compensations are recognized(ibid). 13.99 Future regulations should allow for the development o f ecologically sustainable production processes by local communities within national parks, and for the protection o f property rights in those protected areas. For these purposes, Law 02 o f 1959 andthe NaturalResources Code should be reformed (ibid.). Climate Change 13.100 Colombia has undertaken a diverse set o f activities to address the issue o f climate change, and based on the information presented in this section, it might consider continuing current efforts on the long-term aspects o f that problem. The main priority with respect to climate change might include the design and implementation o f an adaptation strategy. By its very nature, climate change is a crosscutting issue that involves many levels o f government and many agencies. Additional capacity building and strong management direction at the national level are needed to assure the most effective and cost- effective management response. Suggestions include establishment o f a clearinghouse o f information, and the designation o f one national-level entity to coordinate efforts to this end. Regarding mitigation activities, it i s clear there are many opportunities to advance the twin objectives o f economic and GHG mitigation in Colombia. The Climate Change Mitigation Office i s already promoting the CDM and providing support to developers on specific projects. To continue activities in this area, it would be advisable that enhanced support be offered to project developers. OzoneDepletion 13.101 Colombia has taken significant regulatory and implementation actions to reduce ODS under the Montreal Protocol and the Vienna Convention. It might also consider continuing its efforts in this area, with priority assigned to expanding current efforts to small companies, particularly in the refrigeration maintenance sector where it is most difficult to control and eliminate ODs; strengthening the legal framework by establishing a mandatory certification to maintenance technicians; and completing the design andfurther implementationo f regional strategies (Table 13.3). 333 Table 13.3: Recommendationsto ControlBiodiversityLoss andOther GlobalEnvironmental Problems ~~ Prior@ short (S), medium(w, Recommendations and long term (L) Participating institutions 1. Develop anevaluation o f the National Parks Systemthat incorporates cultural, regional, andeconomic considerations and involves stakeholdersthrough participation processes. Reforms could also allow for the development ofecologically M MAVDT sustainable production processesby local communities with national parks. 2. Reforms to Law 02 o f 1959, the Natural Resources Code o f 1974, andDecree 622 o f 1977to harmonize themwith the L Congress/MAVDT preceptso f the 1991Constitution. 3. Reforms to the existing legal framework to solve the inconsistenciesthat exist with the Policy for Social L Congress/MAVDT Participation inConservation. 4. Conduct a valuation o f current andpotential economic surplus generatedas a result o fthe sustainableuse ofbiodiversity. L Donors/development partners 5. Continue taking advantageof financing opportunities posed bythe MontrealProtocol. MDChlontreal Protocol 334 CHAPTER 14 CONCLUSIONSAND RECOMMENDATIONS 14.1 Colombia's environmental management framework has evolved into a decentralized and innovative environmental management system.206The National Environmental System (Sistema Nacional Ambiental, SINA) defines a role for different stakeholders, including financially independent regional environmental agencies, a central-level ministry responsible for overall policy formulation and coordination, and research institutes responsible for collecting and disseminating environmental data. The SINA also defines a role for nongovernmental organizations through their involvement on the boards o f regional agencies and for the private sector through its significant involvement in a Technical Advisory Council, which advises on policy formulation. Intersectoral coordination is promoted through the National Environmental Council, which comprises representatives from 25 organizations including nine Ministers (Planning, Agriculture, Health, Mines and Energy, Education, Transport, Defense, Commerce, Environment and Housing) and six representatives from business and industry associations (oil andgas, mining, export, manufacturing, forestry, andagriculture). 14.2 Changes to the 1991 Constitution and the subsequent preparation o f Law 99 o f 1993 which established the SINA reinforced the rights o f every citizen to a clean and healthy environment. The new legislation reflected the evolution o f the SINA from Water Basin Authorities in select watersheds to the creation o f a Natural Resource Division as part o f the Ministry of Agriculture and subsequently to the creation of a Ministry of Environment to coordinate the SINA entities, which included the previously established Water Basin Authorities. It also incorporated several new authorities andurbanauthorities for cities with populations over 1 million, reflecting Colombia's move Colombia from a highly rural economy to a largely urbanized economy. 14.3 This chapter summarizes the conclusions of the Country Environmental Analysis and provides recommendations to assist the Government o f Colombia in the revision o f policies to address the priority environmental problems. It also outlines a program o f policy and institutional reform and complementary investment directed toward areas that impose a high cost on the economy, but that have not yet been tackled (Table 14.1). An increased focus is needed on improving the quality of life for the growing number o f poor people living in and around urban areas in a country, where over 70 percent o f the population is urban. The goal o f the recommendations presented in this chapter is to support the country's efforts to move toward more equitable andsustainable economic growth. 14.4 Colombia's growth from a largely rural economy to a highlyurbanized country has been rapid over the last 50 years. Despite a very strong planning tradition, environmental priorities have been driven by historical traditions. The creation o f the Regional Autonomous Corporation of the Cauca Valley (CVC) in 1954 as a river basin agency along the model of the Tennessee Valley Authority, the original placement o f the National Institute o f Renewable Natural Resources (Instituto Nacional de 10s Recursos Naturales Renovables, INDERENA) within the Ministry of Agriculture, and the large number o f officials with a water or natural resources background produced a primary emphasis only on water resources management, national parks, ~~~ *06Emesto Sinchez-TrianaandKulsumAhmedauthoredthis chapter. 335 and forest issues. This emphasis has yielded considerable dividends in the water resources management and conservation programs. These include the establishment o f a National Natural Parks System (8.5 percent o f the national territory) andforestry reserves (more than 15 percent o f the national territory), anda reversal in deforestation rates from 600,000 hectares per year inthe 1970s and early 1980sto 90,000 hectaresper year in2004. 14.5 Given Colombia's economic growth and development over the last decades and the green environmental agenda's progress, the environmental priorities appear to have expanded. The environmental managementagenda, however, has still not caught up with this change, The analysis shows that the greatestcosts nowborneby the country, amounting to more than 3.7 percent o fgross domestic product per year, are associatedwith the following categories o f environmental problems: waterborne diseases, urban air pollution, indoor air pollution, land degradation, and natural disasters. This suggests that there needs to be a new focus for SINA's activities. Efforts need to be made to buildcapacity to cany out related quantitative analyses on a periodic basis as an input to the government's plans. 14.6 As shown inChapter 5, inaddition to quantitative analysis, there are a number o f ways to identify priorities. Consistent with the quantitative study, a survey o f public perceptions o f Colombia's environmental problems, covering more than 2,600 Colombians throughout the country, showed that air pollution was the main environmental problem identifiedby 79 percent o f the people surveyed. The same survey, however, illustrated significant differences in perceptions o f priorities among income groups. Whereas low-income groups identified air pollution, noise pollution, andvulnerability to natural disasters as major problems, upper-income groups perceived the loss o f global environmental resources (for example, biodiversity, global warming) and inappropriate landuse inurbanareas as principalproblems. 14.7 Finally, drawing on the discussion o f environmental expenditures presented inChapter 2, it is noted that current expenditures are not well aligned with the priorities o f the lower-income groups or with the environmental problems associated with the highest costs o f damage. For example, in Chapter 4, available data suggest that Autonomous Regional Corporations (Corporaciones Autbnomas Regionales, CARs) might consider strengthening efforts to prioritize risks and allocate investment funds accordingly. In 2001, CARs, as a group, allocated 28 percent of their investment funds to projects involving the protection o f flora and fauna, but only 5 percent o f these funds were allocated to industrial pollution control projects other than wastewater treatment plants. Although these statistics are based on limited data and must be interpreted cautiously, they do suggest that, given the severity o f Colombia's environmental problems, CAR investments may focus disproportionately on constructing wastewater treatment plants.Inaddition, examination o f individual CAR allocations of 2001 investmentfunds suggests that CARs' allocations o f investment spending across different risks do not comport well with the severity o f these risks. 14.8 The results o f the analysis support the view that the segments o f the population that bear the heaviest burden o f the cost o f environmental degradation have not traditionally been taken into account in policy decisions, largely because they do not constitute a constituency. In particular, the poor and children often are disproportionately affected by environmental degradation. The discussions on air pollution, water resources management, and biodiversity indicate that in Colombia, as in most countries, stakeholders affected by environmental degradation have less o f a voice to address environmental issues when priorities are set, decisions are made, and human and financial resources are allocated. In the case o f indoor air pollution, typically it is children under age 5 who suffer the most from acute respiratory infections and pneumonia. Other examples include the case study o f water resources management inthe Bogotd 336 Savannah. Water scarcity is an issue for small farmers living inthe Savannah, whereas the larger stakeholders, such as the irrigation district, the regional environmental corporation, and the energy company have secured access to a sufficient quantity o f water (Universidad de Los Andes 2004). In another case study on the creation o f National Protected Areas, in which, by law, all economic activity is forbidden, some o f the more susceptible groups are the indigenous populations living inthat area from whom property rights are taken away, despite their close and long association with the land (Universidadde 10s Andes 2004). 14.9 In Colombia there have been important strides in setting up an environmental management system that includes a coordination function at the central level inthe ministry, and control agencies, such as the Contraloria and the Delegate Procuraduria for Environmental Affairs, which has responsibility for oversight o f all environmental authorities in Colombia within the Procuraduria General. In addition, the legal framework gives these agencies considerable responsibilities. For example, under current law, the control organizations can set in motionprocedures to remove CAR directors general for failure to comply with CAR actionplans. 14.10 Nonetheless, the absence o f reliable, time-series data on the state o f the environment and natural resources, and the lack o f a system o f homogeneous, results-focused indicators o f environmental quality, have hampered the efforts o f these agencies to evaluate programs. Furthermore, as noted in Chapter 3, the SINA's current capacity for data collection is limited. Colombia's data collection infrastructure-including monitoring networks and measuring stations, documentationcenters, andbasic cartography-is inadequate. The actual performance o f the control agencies and the coordinating Ministry o f Environment have also fallen short, for a multitude o f reasons, including weak technical and human capacity, and institutional and historical reasons given the autonomy o f the CARs, their direct sources o f funding, andtheir long history, unlike the more recently established Ministry o f Environment, Housing and Regional Development (Ministerio de Ambiente, Vivienday Desarrollo Territorial,MAVDT). 14.11 There is poor correlationbetween environmentalpriorities and allocation o f expenditures. There is also a lack o f clarity andpolicy guidance with respect to certain administrative practices, notably in the hiring o f contractors by CARs. In terms o f possible strategies to address this excessive reliance on contractors, there are clear tensions betweentwo different policy objectives, On the one hand, there is a national goal to limit operational spending and staff size across all government agencies. On the other hand, there is growing recognition o f the need to limit the CARS'reliance on contractors. 14.12 To encourage a focus on the quality o f environmental outcomes and to overcome the coordination problems among CARs and national and regional agencies, Presidential Decree 1200 o f 2004 established a system o f performance indicators to measure impact and results o f environmental investments at the regional level by means o f Ten-year Regional Environmental Management Plans. Six impact indicators are included in the Three-year Action Plan (Plan de Accibn Trienal, PATs) to evaluate environmental management by the CARs. The results-based indicators for environmental quality cover issues including deforestation rates and forest conservation efforts, development o f green markets, rationalization and optimization o f renewable natural resources consumption, reduction in health impacts associated with environmental factors, and reduction in vulnerability risk associated with natural disasters. Each year, the MAVDT will review progress inachieving the goals set forth inthe PATs andRegional Environmental Management Plans (Planes de Gestibn Ambiental Regional, PGARs). The directors o f CARs that do not meet the goals set forth in their own PATs are at risk o f being removed by the CARS' Board o f Directors. At this point, the process i s so new that it is not possible to evaluate it. 337 14.13 Although Colombia has extensive environmentalregulations, there are still challenges on this front, In many cases, urgently needed regulations do not exist, some regulations are incomplete and lacking in critical details, and some regulations are overly prescriptive and not adjusted to local economic and social circumstances. For example, command-and-control emissions standards have sometimes been adopted from more developed countries with little modification. These inadequacies inColombia's regulations lead to problems. They contribute to poor coordination between the MAVDT and the CARs by making it difficult for CARs to carry out one o f their basic functions-implementing regulations established at the national level. They also make it difficult for other institutions in the SINA to perform their assigned roles. For example, in 2003, the Contraloria noted that lack o f regulation-from constitutional precepts to specific information standards-made it difficult to advance the Colombian Environmental Information System (Sistema de Informacidn Ambiental de Colombia, SIAC). Incomplete licensing and permitting regulations lead to inconsistent requirements and enforcement across CARs and therefore create opportunities for administrative arbitrariness. Lack o f clarity in laws and regulations also burdens Colombia's judicial system. This lack may have contributed to the proliferationo facciones de tutela brought to protect the environment. 14.14 Continuous strides forward demonstrate an organization's ability to adjust course and improve incrementally over time. Improving over time involves generating knowledge by processing information or events and then using that knowledge to cause behavioral change. It may not be an intentional process. Learning is crucial in the context o f Colombia, particularly since there seems to be a lack o f mechanisms that have allowed the country in recent years to adjust course with changing contexts and to analyze and learn from its previous experiences. Some stakeholders have shaped a continued focus on water resources management and conservation programs with great success. The government itself has few mechanisms that allow for the setting o f priorities andthe development o f an institutional memory. 14.15 An example o f difficulties inimproving over time inaddressing environmental priorities has been the sporadic history o f air quality monitoring networks in Colombia, which were first established in 1967, by the Pan American Health Organization, together with the Ministry o f Health, in several cities, including Bogotb and Medellin, to monitor total suspendedparticles and sulfur dioxide levels. These programs lasted until 1974, when they were dismantled. Monitoring systems were again set up in many locations in response to Decree 2 o f 1982. In the case o f Bogotb, the Department o f Health installed and operated 12 monitoring stations during 1983- 1989. Then, during 1990-1991, the Japan International Cooperation Agency (JICA) financed the installation and operation o f 5 more monitoring stations, None o f these three networks operated after 1991. Further, despite the existence o f these stations, there i s no reference to the use o f data generated by them as an input to air pollution control strategies before 1991 (Universidad de 10s Andes 2004). During 1991-1997, there was no air quality monitoring in Bogoth. Then in 1997, the Environmental Administration Department (Departamento Administrativo del Medio Ambiente, DAMA) installed a new network o f 12 monitoring stations, which included the pollutant parameters in Decree 2 o f 1982, and PMlo and PM2.5. The latter pollutant was only monitored until 1999, when the equipment was damaged andnot replaced. The story i s somewhat similar in Medellin, with the installation of 7 stations in 1983 by the Department o f Health. Again, there is little evidence o f the use o f data generated by these stations as an input to air pollution control strategies, and as inthe case o f Bogoth, these were supersededby a new system inthe late 199Os, comprisedof 18 stations inthe Aburrb Valley with the capacity to measurethe five pollutants noted in Decree 2 o f 1982, in addition to PMlo. The functioning o f this newest network, however, has been interrupted several times due to legal problems and the calibration o f equipment resulting ininformationvoids (ibid.). 338 14.16 It is also crucial that systems of evaluation are not static, and are able to adjust to new developments in science, technology, and other fields. Inthe 1970s, the conventional wisdom was that high ambient concentrations o f total suspended particles (TSP) represented a serious health problem. More recently, with improvements in measurement technologies and analytical techniques, frne particles with diameters o f 2.5 microns or less appear to be the real culprits. This finding, inturn, has ledto significant changesinair pollutioncontrol strategies inthe UnitedStates andother countries. InColombia, the importance of fine particles with diameters of2.5 microns or less (PM2.4 on health impacts is increasingly being recognized, and the government intends to move ahead with the installation o f a monitoring system for PM2.5to obtain better information for decisionmakingon air pollutioncontrol strategies. 14.17 On the other hand, developments in addressing indoor air pollution are still in their infancy. As little as ten years ago, indoor air pollution was not considered to be a major health threat. Today, together with waterborne diseases, it appears on the list o f the top ten causes o f illness and death in the World Health Organization's (WHO'S)Global Burden o f Disease report. Indeveloping countries with highmortality rates, indoor air pollution is the fourth leading cause o f illness and death (WHO 2002). Recent WHO estimates indicate that indoor smoke from solid fuels causes 1.6 million deaths annually. This is not because the problem did not exist ten years ago. Rather, only with the generation o f information, and the processing o f that information, is it becoming clearer that this fo,rm o fpollutionprincipally affects millions o f women and children in poor rural families who depend on firewood for cooking and heating. Some countries are realizing the importance o f this and acting on it; many others have still not grasped the importance o f placing this issue highon the policy agenda. The cost-of-degradation study shows that this is also an important issue for Colombia, affecting inparticular poor women and children inruralhouseholds. It is advisable that the government consider actions to reduce the impact of indoor air pollution on these susceptible groups. 14.18 Clearly, public available systems for monitoring and evaluation seem especially crucial, not only for technical learning but also for purposes o f democratic legitimacy and public confidence. It is also crucial that these improvements over time take place on several fronts, and that a number o f stakeholders participate in the process, in particular to minimize and prevent learning traps. An example is the common misconception o f the critical factors behind the success o f the Cauca Valley Corporation's (CVC's) water pollution control program, which has led the CVC to emphasize cooperation with industry, de-emphasize strict enforcement o f regulations, and experiment with effluent charges. A more thorough analysis demonstrates that important factors for the success o f the program were citizen pressure, negative publicity, and policies o f parent transnational companies calling for the use o f environmental audits to facilitate compliance with environmental rules. Tackling EnvironmentalPriorities 14.19 The remainder o f this chapter focuses on a programo f policy andinstitutional reform and complementary investment directed toward areas that impose a high cost on the economy, but which have not yet beentackled (Table 11.l), particularly the need to have an increased focus on improving the quality o f life for the growing number o f poor people living in and around urban areas ina country where over 70 percent o fthe population i s urban. WaterborneDiseases 14.20 Although Colombia has achieved substantialreductions in child mortality, including child mortality from diarrheal diseases, the costs associated with diarrheal morbidity from contaminated 339 water and inadequate hygiene in both children and adults remain high. The poorest groups often lack adequate sanitation andwater supply. Approximately 9 percent o f the population does not have access to an improved water source, and the lack o f sewerage in 20 percent o f urban centers is a serious environmentalproblemfor the country. These poor results are largely attributable to the fact that explicit policies to address these problems do not exist. An analysis o f alternative interventions to address waterborne diseases shows that the most effective interventioninColombiawould be the design and implementation o f a safe water program that promotes hygienic behavior through handwashing and water quality at the point o f use, accompanied by the provision o f potable water andsewerage. Urban andIndoor Air Pollution 14.21 Air pollution i s one o f the most widespread and serious problems in Colombia's cities and rural areas. Although air pollution levels are moderate inmost cities, the fact that close to 50 percent o f the population lives in cities with more than 100,000 inhabitants creates substantial aggregate health effects, associated mainly with particulate matter. This results inhealth impacts such as cardiopulmonary diseases andlung cancers in adult segments o fthe population, andacute respiratory illness, particularly in children, including death from related diseases such as pneumonia. Analysis reveals that the bulk o f the associated cost of urbanair pollution is linkedto mortality. Approximately 6,000 premature fatalities per year occur due to outdoor air pollution, while an estimated 1,100 fatalities are relatedto exposure to indoor air pollution, associated with use o f fuelwood, charcoal, and other solid fuels as primary sources o f cooking fuel. Since 1993 there has been insufficient allocation o f financial and human resources for addressing air pollution by the government. Furthermore, the urgency to update regulations and issue standards and economic instruments that minimize the concentration o f particulate matter in the air is apparent.' In order to achieve this, the most promising options include reduction o f the sulfur content o f fuels, and control o f emissions from stationary sources andnonpoint sources including control o f burning o f agricultural residues. With respect to indoor air pollution, possible options include interventions that promote the use o f cleaner fuels, technical mitigation options such as improved cook stoves, andpolicies that promote improvedhousing design. Natural Disasters 14.22 Colombia faces numerous natural disasters such as floods, droughts, and earthquakes. The largest number o f natural disasters is related to floods and landslides, the management o f which falls under SINA's mandate. The problems associated with natural disasters include frequent floods and landslides. Inadequate drainage in most urban areas is an important factor linked to urban flooding. In the last quarter century, the country has experienced six major earthquakes, three volcanic eruptions, three landslides, and three avalanches at a significant cost to the country in terms o f human and physical capital. According to a recent study, more than 4 million Colombians were affected by natural disasters during 1993-2000, at an annual cost o f approximately US$453 million (Echeverry Garz6n 2002). The poorest and most susceptible have paid the highest costs for these disasters in terms o f damages, deaths, and lost assets. To reduce vulnerability to natural disasters a number o f activities must be considered, particularly nonstructural measures to prevent human settlements in areas o f high vulnerability to natural disasters. SoilDegradation 14.23 The main components o f landdegradation in Colombia are erosion and salinization, and the problems associated with deforestation. The lack o f interinstitutional coordination to address 340 the problems o f land degradation is pervasive. The analysis suggests that dispersed investments from states, municipalities, environmentalauthorities, and CARShave been made in reforestation with little or no impact on erosion control or regulation o f water streams. Currently, Congress is discussing a national forestry bill. Several stakeholders have recommended incorporating in the billprovisions to securethe rightsof indigenous peoples andsmallfarmers. Water ResourcesPolicies 14.24 Colombiais a country with abundant water resources, andwater scarcity is a problem ina small percentage o f Colombia's watersheds. As a result o f degradation o f water bodies, and unequal geographic distribution of water resources, ifwater resources are not properly managed, by 2025 more than 14millioninhabitants could suffer water shortages(IDEAM2004). 14.25 Strengthening performance in the water sector requires improving existing regulations to control water pollution, including a reform o f water pollution fees and introduction o f economic instruments to improve efficiency and equity, andwater quality standards for humanconsumption, recreational uses, and irrigation. Likewise, this will require strategies to formulate, socialize, and implement programs for accountability, transparency, and governance to promote compliance with water quality standards. Urban Environmental Management 14.26 Urban environmental management problems include two sets ofproblems associatedwith housing and urban planningandwith waste management. Regardingthe environmental effects o f urban planning and housingpolicies, housing andurbanpolicies couldbe amended andenhanced inorder to minimize negative environmental impacts. The three main actions suggested are the streamlining o f environmental issues in the LandUse Plans, the prevention o f informal housing, andthe design o fhousingsubsidyprograms aimedat avoiding adverse environmental outcomes. 14.27 Regarding waste management, statistics indicate that about 27,500 tons o f solid wastes are generated daily in Colombia. There are more than 700 open garbage dumps located in small- and medium-size municipalities, where public service for waste collection and disposal is deficient. Very few o f the nation's registered landfillsoperate effectively, whereas inthe majority of cases, uncontrolled landfills threaten surface and ground water in surrounding areas. Lack o f clarity regarding minimum technical specifications and deficient interinstitutional mechanisms for adequate closure o f open dumps and construction o f new landfills, have resulted in weak compliance and enforcement. Typically, the poorest live closest to open dumps and poorly designed and operated landfills, which pose both environmental and health risks. Underscoring these challenges is the fact that an increase in shanty towns and informal housing in areas most susceptible to risks o f natural disasters, has resulted inincreased vulnerability for greater numbers o f poor people. To address this, it is advisable to design and implement policies to operate effective regional waste disposal sites, andestablish andenforce regulations to segregate andtreat hazardous wastes. Global Environmental Problems 14.28 Some o f the most salient global environmental problems evident inColombia are loss o f biodiversity, climate change, and ozone depletion. The area covered by the national parks represents close to 10 percent o f the national territory. Compared with four other mega-diverse Latin American countries, and countries inother latitudes, the percentage of landthat i s protected is considerable (Figure 4). 341 14.29 It is important to recognize the notable progress achieved inthe creation o f national parks by the government. To further its success and guarantee its sustainability, legislation could be improved by increasing the importance of local economic, cultural, and social realities and expectations, in order to ensure that the rights o f local stakeholders are not detrimentally affected. Protected areas legislation has in some cases limited the use o f traditional production systems and natural resources by local inhabitants. To overcome this weakness the government is considering putting in place institutional mechanisms to prevent and resolve conflicts between conservation interests and other social priorities, such as regional, social, and economic development. Regarding biodiversity, climate change, and ozone-depleting substances, Colombia has taken advantage o f financial mechanisms such as the Global Environment Facility (GEF), the Prototype Carbon Fund (PCF), and the Montreal Protocol to finance private investments aimed at reducing emissions o f greenhouse gas andozone-depleting substances. Conchsions 14.30 In recent decades, there have been high levels o f economic growth and urbanization in Colombia. Considerable progress has also been made in addressing the water and forestry environmental agenda. There has therefore been a shift in the country's main environmental problems, with an increasing emphasis on environmental health issues. However, the environmental management agenda has yet to catch up with this shift inpriorities from watershed and forestry to environmental health problems due to a lack of mechanisms in the current institutional structure to signal these changes. Improved monitoring and dissemination o f information on environmental outcomes, assignment o f clear accountabilities for environmental actions and outcomes, and involvement o f a broad range o f stakeholders are three important mechanisms to allow these signals to be picked up as there is further evolution o f environmental priority issuesinColombia. 14.3 1 In conclusion, environmental problems associated with the highest costs o f environmental degradation in Colombia are, in decreasing order o f magnitude, waterborne diseases, urban air pollution, natural disasters, land degradation, and indoor air pollution. Combined, these environmental problems cost C$7 trillion or 3.7 percent o f Colombia's GDP. The poor and less powerful stakeholders in Colombia bear a disproportionately high amount o f this cost. In order to combat these problems, this report identifies a number of cost-effective interventions which could be adopted in the short and medium terms to support efforts to move toward achievement o f sustainable development goals (Table 14.1). Toward this end, the Government o f Colombia i s considering putting in place mechanisms to identify environmental priorities basedon analytical work andbroadpublic consultations. 342 Table 14.1: MainPolicy Optionsofthe Report Key issue Mainpolicy options Needfor strategic and 0Designandimplement apolicy (through laws andregulations) to set environmental systematictools for priorities at the national, regional, andlocallevelsbasedon learning mechanismsto priority setting periodically review andlearnfrom the experiences o f implementing environmental policies. Install andimplementsystems to monitor andevaluateenvironmentalmanagement and the extent to which the objectiveso fenvironmentalpriorities are efficientlymet. 0Periodic evaluationsofprogress onthe implementation o fpolicies to tackle environmental priorities with the supportofthe accumulationo f data, results, andexperiences achieved through intersectoralcoordinationandlearning. .- ......... ... -....... __....... .. - . ..... .... -I. Needfor strengthening 0Mainstreamenvironmentalconsiderationsinpolicy formulation bystrengtheningSINA institutions' capacity to institutions' capacityinpriority areas through, for example, strategic environmental address environmental assessmentsin(a) environmentalhealth, (b) vulnerability to natural disasters, and(c) priorities, particularly in sustainableurbandevelopment. environmental health Highcost o f Designandimplementa"safe water" programthat includes componentsdealingwith environmental handwashing andpoint-of-use disinfection ofdrinking water. degradationassociated Facilitateprivate sector participation inwater supply and sanitation. withwaterborne 0 diseases Modify water pollution fee system(tmasretributivm)to promotethe constructionof sewage collection systems. 0Formulate andimplement actionsto promote compliancewith drinkingwater quality standards. Modify laws andregulationsonparametersofeffluent standards so that pathogens and toxic andhazardoussubstancesare regulated. Highcost of Revise andestablishnational standards for PM25 andPMloinpriority urbanareas and environmental updatemajor emissionstandards for mobileandnonpoint sourcesto reflect new scientific degradation associated andtechnological advances. with air pollution 0Implement air pollution control interventions,suchas promoting the improvement offuel qualityintransportandindustry sectors, expandingtheuseofnatural gasto replacecoal andoil, andestablishingemissions control from stationary, mobile, andnonpoint sources. 0Implement anair quality monitoring programto monitor PM2 andPMloinpriority urban areas. 0Implement andenforceregulations(including Resolucidn 0532 of2005) to control air pollutionemissionsandappropriatemonitoringmethodsfor "green cut" o fsugarcane. (Green cut refersto usingmanualor mechanicalmethodsto remove sugarcaneinsteadof burningout the fields for planting.) Reformthe compliance andenforcementsystems includingthe adoption o famore severe penalty system. Introducemore rigorous approaches to vehicle emissionstesting. . . . .. . . . . . Morbidity andpremature 0Promote the use of cleanerfuels inareas that predominantly use fuelwood inan deaths associatedwith accessible, safe, andcost-effectivemanner. indoor air Pollution Implement aprogramto promote improved stoves. Extend the coverageo fruralelectrification programs. Insubsidyprogramsfor rurallow-incomehousing, includerequirementsforbuilding codes andhousing design inpoor communities to allow for improvedventilation and optimal chimney design. __...___. __ _-_I-_--_I_- ___.___.._._____I.____I__ 343 Vulnerability to natural 0Increase efforts to prevent natural disasters, especially floods and landslides, through disasters activities that focus on incorporating disaster prevention in land use plans, drainage improvements, warning systems, and regulationsprohibiting informal settlementinareas prone to risks ofnaturaldisasters. 0Develop a permanent system o f performance indicators for reduction o f vulnerability to natural disasters. 0Define the specific roles of each national- and regional-level member of the National DisasterPreparednessandResponseSystem(SNPAD) andSINA, particularly CARS. Create strongerincentivesfor inclusion ofdisaster considerationsinenvironmentalimpact assessmentsandenvironmentallicensing. Periodically conductnational, regional, andlocalriskassessments. 0Require all levels of government to use comparativerisk assessment to guide allocations offinancial, human,andtechnical resources. 0Establishpriorities for disaster monitoring and alert systems based on comparative risk assessment. Requirements for Devise concrete ways of integrating environment into urban planning and management improvedurban tools after reviewing the legal and regulatory framework of environmental and urban environmental legislation. conditions Define and include environmental criteria in the eligibility criteria of Social Interest Housing(VIS) projects. 0Address structurallandsupplyproblems andlower costsofformality. Upstream enforcement of existing regulations and planning documents to prevent occupationofhazardous sites. 0Enforce landuse plans (POTS)so that decisions on siting of landfills are consistentwith zoning regulationscontainedinPOTS. Needfor improvedwater 0Reexaminethe roles o fgovernmentbodiesandcreate more efficient cooperative resourcemanagement mechanisms. 0Findaneconomically efficient approachto wastewatertreatment, andcontrol discharges ofpathogens andhazardouswastes. 0Ensurethe collection andpublic disclosureofinformation relatedto water availability and water demands. 0Ensurethat the economicvalue ofwater is adequatelyreflected inwater fees. Landdegradation and 0Identify the costs andbenefits ofalternativeinterventions to control soil erosionandsoil deforestation salinization. 0Generationofalternativesto diversifynon-timber forest productsandimprovethe livelihoods offorest-dwelling communities. 0Establishthe analytical mechanismsto fosterthe capacityfor bothindigenous communities andthe m a lpoor to profit from the sustainableandproductive uses o fforest areas andthe implementation o fpaymentsfor environmental services. 344 REFERENCES Abbey, David, DavidLebowitz, PKMills, FFPetersen, W L Beeson, andRJBurchette. 1995. "Long- Term Ambient ConcentrationsofParticulatesand OxidantsandDevelopment of Chronic Diseasein a Cohort ofNonsmoking CaliforniaResidents." Inhalation Toxicology 7 (1): 19-34. Access Initiative. 2004. The Access Initiative. www.accessinitiative.org.March. AgustinCodazzi Geographic Institute (IGAC) andMinistryofAgriculture (Corpoica). 2002. Coverage andActual Use of Soil. Colombia. 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