LATIN AMERICA
Environmental Protection and Sustainable Development of the Guarani Aquifer System Project
Project Appraisal Document
Latin America and Caribbean Region
LCSES
Date: April 26, 2002
Team Leader: Karin Erika Kemper
Country Manager/Director: Vinod Thomas
Sector Manager/Director: John Redwood
Project ID: P068121
Sector(s): VM - Natural Resources Management
Theme(s): Environment; Water
Focal Area: I - International Waters
Poverty Targeted Intervention: N
Project Financing Data
[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others:
Amount (US$m): 0
Financing Plan (US$m): Source
Local
Foreign
Total
BORROWER/RECIPIENT
7.46
4.64
12.10
GLOBAL ENVIRONMENT FACILITY
1.30
12.10
13.40
LOCAL: BENEFICIARIES
0.51
0.75
1.26
Total:
9.27
17.49
26.76
Borrower/Recipient: MULTI-COUNTRY PROJECT ARG-BRA-PAR-URU
Republic of Argentina - Federative Republic of Brazil - Republic of Paraguay - Oriental Republic of
Uruguay
Responsible agency:
ARGENTINA
Address: Ministerio de Infraestructura y Vivienda, Subsecretaría de Recursos Hídricos, Hipólito Yrigoyen 250, piso 11,
Of. 1128, C1086AAB Buenos Aires, Argentina
Contact Person: Victor Pochat, Director Nacional
Tel: +54-11-4349 7427 Fax: 54-11-4349 7427 Email: vpochat@miv.gov.arg
BRAZIL
Agência Nacional de Águas - ANA - Setor Policial Sul, Área 5, Quadra 3, Bloco L, 1 andar - Brasília, Brazil - Contact
Person: Jerson Kelman, Diretor-Presidente. Tel: 55-61-445 5441, Fax: +55-61-445-5427, Email: kelman@ana.gov.br
PARAGUAY
Dirección General de Protección y Conservación de Recursos Hídricos - Secretária del Ambiente (SEAM), Avenida
Madame Lynch 3500, Asunción, Paraguay - Contact Person: Celso Velazquez - Director Nacional
Tel: +595-21-615811, Fax: +595-21-615814; Email: vcelso@telesurf.com.py
URUGUAY
Ministerio de Transportes y Obras Públicas, Dirección Nacional de Hidrografía, Rincón 575 2º P., Montevideo 11000,
Uruguay. Contact Person: Luis Enrique Loureiro, Director Nacional
Tel: +598-2-916 4783/84, Fax: +598-2-916 4667, Email: dnh@uyweb.com.uy
Other Agency(ies):

PROJECT EXECUTING AGENCY: Secretariat of the Organization of American States
Address: 17th & Constitution Ave, N.W., Washington, D.C. 20006

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Contact Person: Jorge Rucks, Chief Division II, Unit for Sustainable Development and Environment
Tel: 202-458 3862 Fax: 202-458 3560 Email: jrucks@oas.org
Estimated Disbursements ( Bank FY/US$m):
FY
2003
2004
2005
2006
Annual
1.61
4.02
4.64
3.13
Cumulative
1.61
5.63
10.27
13.40
Project implementation period: 4 years
OCS PAD Form: Rev. March, 2000
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A. Project Development Objective
1. Project development objective: (see Annex 1)
The long-term objective is the sustainable, integrated management and use of the Guarani Aquifer
System. The Guarani Aquifer System is situated in the eastern and south central portions of South
America, and underlies parts of Argentina, Brazil, Paraguay, and Uruguay. This project is a first
step toward achieving the long-term objective. It is to support the four countries in jointly
elaborating and implementing a common institutional and technical framework for managing and
preserving the Guarani Aquifer System for current and future generations. To provide such
support, seven project components are envisaged: (i) expansion and consolidation of the current
scientific and technical knowledge base regarding the Guarani Aquifer System; (ii) joint
development and implementation of a Guarani Aquifer System Management Framework, based
upon an agreed Strategic Program of Action; (iii) enhancement of public and stakeholder
participation, social communication and environmental education; (iv) evaluation and monitoring
of the project and dissemination of project results; (v) development of regionally-appropriate
groundwater management and mitigation measures in identified "Hot Spots"; (vi) consideration of
the potential to utilize the Guarani Aquifer System's "clean" geothermal energy; and, (vii) project
coordination and management. These are elaborated in Annex 2.
2. Key performance indicators: (see Annex 1)
The principal performance indicator against which the Project will be measured is the existence of
an overall Guarani Aquifer System Management Framework (Strategic Action Program),
including technical, scientific, institutional, financial, and legal aspects, for the sustainable
management and protection of the Guarani Aquifer System in the four countries. Key
performance indicators with regard to this overall framework will include process indicators,
stress reduction indicators, and environmental status indicators:
Process Indicators
·
the existence of a multi-country agreement on the institutional and technical framework
for the management of the Guarani Aquifer System;
·
the existence of a Transboundary Diagnostic Analysis, identifying the primary threats to
the structure, function, and sustainable use of the Guarani Aquifer System, including the
location of areas under current threat and in need of immediate attention (i.e., "hot
spots");
·
the existence of a Strategic Action Program for the sustainable management of the
aquifer, including programs for:
§
the operation and maintenance of the data acquisition and monitoring
system;
§
the implementation and sustainable operation of the legal-institutional
framework once such a framework is approved and adopted
by the countries;
§
investments in pollution prevention and mitigation measures;
§
investments in geothermal energy use;
§
support to the resolution or mitigation of existing and potential conflicts;
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·
the existence of a consensus proposal for a joint legal framework for the management of
the Guarani Aquifer System;
·
the existence of a functioning monitoring network.
Stress Reduction Indicators
·
an operational communications campaign, with a defined percentage of the target
population reached;
·
identified and quantified water quality threats and their evolution;
·
existence of norms for well design, construction and maintenance at a regional scale,
taking into account sub-regional variations;
·
identified and documented pollution mitigation and groundwater depletion together with
management measures implemented and monitored in specific "hot spots".
Environmental Status Indicators
·
agreed goals, criteria and standards for the transboundary diagnostic analysis and
sustainable management of the Guarani Aquifer System, including quantitative and
qualitative indicators upon which priority actions can be identified and implemented;
·
defined western and southern boundaries of the aquifer system, as well as defined
recharge and discharge areas, surgence zones as well as vulnerable areas, including
those with higher degrees of environmental risk;
·
completed conceptual and mathematical models of the aquifer system, including
its water quality, quantity, and hydrodynamic behavior;
·
implementation of an up-to-date, functioning Information System, shared among
the four countries, as a mechanism for transboundary information-dissemination,
decision-making support, and management of the Guarani Aquifer System.
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)
Document number:
Date of latest CAS discussion:
Argentina CAS 20354-AR 09/08/00
Brazil CAS 20160-BR 03/06/00
Paraguay CAS 16346-PA 03/06/97
Uruguay CAS 20355-UR 05/05/00
Water resources management issues are prominent in the four Country Assistance Strategies
(CASs). For each country, the water sub-sectors (water supply and sanitation, irrigation, etc.) are
recognized as being sustainable in the long run only if the resource base itself is managed
sustainably. The World Bank and respective governments recognize this, within an appropriate
context for each country, through the respective CASs. This project, through its catalytic effect,
will incorporate groundwater issues into the water resources management agendas of the four
countries, including specific steps with regards to the Guarani Aquifer System. The integration of
the proposed project into the CAS objectives for each country is highlighted below.
Argentina CAS: One of the main development challenges within Argentina is water resources
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management. Serious water quality problems are emerging due to aquifer "mining" and vertical
contamination of water tables that could have economic consequences within the next 15 to 25
years. The CAS gives special attention to water resources management and envisages future
support that will focus initially on institutional capacity building, including development of
tradable water rights with incentives for efficient and sustainable water use, and a watershed
approach to the integrated management of water, soils, and cultivation. The CAS also specifically
states that the World Bank will continue to seek opportunities to expand the use of GEF grants as
a complement to national programs and stimulate innovation with respect to global water
resources issues. In a recent Water Resources Sector Study, groundwater was identified as one of
the critical water resource issues in Argentina. The Guarani Project would contribute to capacity
building in the fields of both groundwater management and sustainable management of water
resources in the country, as envisaged in the CAS.
Brazil CAS: The World Bank would continue its strong involvement in water resources
management. This involvement aims to support ongoing development of the legal and institutional
framework for efficient, integrated, and decentralized water resources management in Brazil. In
this context, however, groundwater has generally been neglected. The proposed project, in
addition to addressing an important aquifer system (providing water for domestic and industrial
purposes to more than 500 municipalities in eight states), is expected to contribute to the
integration of groundwater management issues into Brazil's overall water resources agenda of
Brazil and to enhance an integrated water resources management and protection vision.
Paraguay CAS: The World Bank has agreed to prepare a Natural Resources and Environmental
Management Strategy for Paraguay in order to increase the likelihood of sustainable economic
growth. This Strategy will assist in defining priority environmental pollution problems, and
suggest possible policies for reducing pollution from the industrial, transportation, and water and
sanitation sectors. It also will reassess priorities for natural resources management and prioritize
future assistance for environmental management. Such actions will definitely strengthen the rather
weak water management scenario that prevails, where groundwater plays a low-key role. In
addition, the Government has expressed an interest in preparing a GEF country program to
enhance capacity building within the water resources sector, with an emphasis on groundwater
and natural resources management.
Uruguay CAS: The CAS identifies a number of local and global environmental issues on the
policy agenda. Inadequate natural resource management could jeopardize the otherwise promising
performance within the livestock and agricultural sectors. Poor water resources management is
widespread, leading to inefficient water use and increased pressure on water resources. There are
water quality problems in some sub-sectors. For these reasons, water resources management is a
priority of the Government. The CAS identifies water resources management as a cross-cutting
theme, extending across the agricultural and livestock sectors, the marine fisheries sector, and the
tourism sector, particularly in the coastal zone. The Guarani Aquifer System underlies about 25%
of Uruguay and constitutes about 40% of the country's groundwater resources. It is of importance
to the different water-using sectors identified in the CAS. The on-going Uruguay water resources
sector study complements the proposed project which would contribute to groundwater
conservation in Uruguay.
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1a. Global Operational strategy/Program objective addressed by the project:
The Guarani Aquifer System is a strategic water resource within the MERCOSUR region. It can
be preserved if adequately protected and managed. The main threats to the resource stem from
uncontrolled abstraction, and pollution in the extraction and recharge areas. Given that
groundwater recharge is restricted, and that groundwater pollution is reversible only at very high
cost, if at all, there is considerable merit in protecting the Guarani Aquifer System for current and
future generations.
The Guarani Aquifer System is a clear example of an international (transfronterizo) waterbody
threatened by environmental degradation through over use and pollution, as defined and included
in the GEF Operational Program Number 8. In the absence of a strategic intervention, supported
by the GEF, the likelihood of "business-as-usual" prevailing in the four countries is high. At the
aquifer's current rate of use, and considering the growing use of groundwater for human
consumption, it is easy to foresee an increasing threat of pollution and depletion in the not too
distant future. Uncontrolled use, without rules or regulation, can alter the status of the Guarani
Aquifer System from that of a strategic reserve of drinking water to that of a degraded waterbody
that is the source of conflict among the countries. If nothing is done, the future of the Guarani
Aquifer System, could, at least in certain areas, be the same as that of other shallow aquifers that
have tended to become both polluted and over-exploited.
The global benefit of the proposed project is in terms of the preservation of this transboundary
resource for current and future generations. In the specific case of the Guarani Aquifer System,
there is the opportunity to exploit the advantages of preventive activity. The project would ensure
that, in the face of increasing scarcity and pollution of surface water sources in the beneficiary
countries, this resource is managed today so as to be available as a strategic reserve when needed
in the future. An important issue to be considered in this regard is the fact that an international
legal framework for the management of transboundary groundwater resources currently does not
exist. Annex 13 sets forth a consideration of the potential root causes of the issues facing the
Guarani Aquifer System, based on information gathered during project formulation. This latter
assessment will be refined through the development of a Transboundary Diagnostic Analysis
under Component II of the proposed project (see Annex 14 for a description of the GEF process).
It should also be noted that the World Bank, for example, does not have a specific policy on
groundwater resources. This issue is being addressed in the ongoing evaluation of the World Bank
Water Resources Policy Paper of 1993. It is generally recognized that transboundary groundwater
issues need to be addressed, as projects are often proposed and implemented in areas where a
situation of scarcity and competition for groundwater resources already exists (e.g., in North
Africa and the Middle East). In the case of the Guarani Aquifer System of South America, the
World Bank, through the GEF, could make a significant contribution to shaping an institutional
framework regarding transboundary groundwaters that could serve as a replicable model in other
countries and regions. In addition, the experience derived from this project would be expected to
contribute to GEF and World Bank policy with regard to transboundary groundwater issues.
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2. Main sector issues and Government strategy:
Characteristics of the Guarani Aquifer System
The importance of groundwater, especially of large, deep aquifers, stems mainly from the fact that
these resources constitute a strategic reserve for water supply. Such groundwaters rarely need to
be treated prior to consumption. Natural biogeochemical filtering processes within the aquifers
generally achieve a quality far beyond that which could be obtained, in technical or economic
terms, by the available water treatment methods applied to waters withdrawn from rivers, lakes,
or impoundments. Groundwater is frequently the most viable water supply alternative, especially
where surface waters are polluted by domestic and industrial effluents, solid waste, or
contaminated agricultural runoff. Consequently, sustainable use, development and recharge, and
diligent conservation, consistent with the protection of the aquifers from pollution, should be
important concerns.
The Guarani Aquifer System, named in honor of the Guarani Indigenous Nation, is one of the
largest groundwater reservoirs in the world. It is located under the four MERCOSUR countries:
Argentina, Brazil, Paraguay and Uruguay. Until recently, the Guarani Aquifer System was known
as the Botucatu Aquifer in Brazil, the Tacuarembó Aquifer in Uruguay and Argentina, and the
Misiones Aquifer in Paraguay.
The Guarani Aquifer System extends from the central-west region of Brazil into Paraguay and the
southeastern and southern regions of Brazil, and into northeastern Argentina and central and
western Uruguay (see area map). It has an estimated total surface area of approximately 1.2
million square kilometers (839,800 km2 in Brazil, 225,500 km2 in Argentina, 71,700 km2 in
Paraguay, and 45,000 km2 in Uruguay). The portion within Brazil encompasses about two-thirds
of the total areal extent of the System, and includes parts of eight Brazilian states--an area equal
to that of England, France and Spain combined. An estimated fifteen million people live within the
aquifer's area of surface influence.
About 40,000 km3 of freshwater are contained within the Guarani Aquifer System. About 90% of
this volume is estimated to be potable, although, locally, potability can be reduced due to salinity
and elevated fluoride content (affecting less than 10% of the volume). The volume of water in the
system is equivalent to the total volume of water conveyed by the Paraná River over a period of
almost 20 years (based upon a median flow rate of 10,000 m3/sec). It is estimated that the aquifer
could meet the water demands of 360 million people on a sustainable basis, based on a per capita
water use of 300 liters/day. Only about 10% of the total freshwater reserves would be depleted
after a period of 100 years. Current usage, from deep wells, sustains a per unit rate of abstraction
of up to 1 million liters/hour. The Guarani Aquifer System has an average thickness of 250 meters
varying from lenses of a few meters at the borders of the groundwater basin to about 600 m in its
central parts, such as in the northern parts of the States of São Paulo, Paraná and the southern
parts of Mato Grosso do Sul in Brazil. Its depth below the land surface varies from zero in
outcropping areas and their vicinity to more than 1,000 meters in Argentina.
Besides the excellent quality of the water (which is very suitable for consumption) another
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important characteristic of the Guarani Aquifer is the thermal quality of the waters. In a number of
regions, the water emerges naturally at temperatures of between 33 and 50 degrees Celsius, at a
flow rate of about 100,000 liters/hour. At present, this water is used principally for water supply
and tourism, although it could potentially be exploited as an alternative energy source,
substituting for non-renewable energy sources in the project area.
Despite large surface water reserves, the drinking water supply in this heavily populated region of
the MERCOSUR is increasingly dependent on groundwater. Future problems may occur if
groundwater use is not managed in a sustainable manner or if the groundwater becomes polluted.
In São Paulo State, Brazil, more than 60% of the water supply needs in urban centers are served
totally or partially from groundwater sources, supplying a population of about 5.5 million people.
Demands for groundwater are increasing, due to both demographic growth and economic
expansion, and as a consequence of the pollution of surface water sources (although governments
are also increasingly tackling surface water pollution).
Legal and regulatory mechanisms for the management of groundwater resources are lacking
throughout the MERCOSUR region. Both in Argentina and Brazil, for instance, significant
pollution of shallow groundwater resources is occurring.
Water Quantity Aspects
The use of the Guarani Aquifer System's water has increased significantly in the last decades, as a
consequence of the extreme urbanization pattern of some areas on one hand and developments in
large scale agriculture schemes on the other. In some areas of the aquifer system there is a high
concentration of wells whose water is used for different purposes. Maps produced based on the
assessments undertaken during project preparation show the spatial distribution of water uses
(77% urban household use, 11.5% industrial use and 11.5% agricultural use), as well as maps
with location of wells and their respective depths.
Some of the conflicts related to water quantity are already well identified. These include, among
others, the reduction of potentiometric and phreatic levels, and the interference between wells
experienced in the highly urbanized areas around Ribeirão Preto and Bauru, in São Paulo State
(Brazil) and the transboundary thermal sites between Uruguay and Argentina, particularly in the
area of Salto (Uruguay) and Concordia (Argentina).
Preliminary studies carried out during project preparation estimated that water abstractions in the
Brazilian states of Minas Gerais, São Paulo and Paraná ­ if not managed - will surpass the
aquifer's local recharge rates by 2025. Some regions in Argentina and Paraguay, where the
aquifer's potential has only recently been discovered, are now undergoing groundwater
exploitation with an increasing number of wells being drilled. The actual number of wells tapping
the aquifer system in those regions is still unknown. It is important to keep in mind that due to the
anticipatory character of the present project, data on the aquifer system are scarce. One of the
major activities will be to collect and analyze data for the Guarani Aquifer System.
Water Quantity Aspects
As in the MERCOSUR region in general, in most areas of the aquifer system, the countries' legal
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frameworks for managing and monitoring groundwater use have not accompanied the rates of
extraction and expansion of groundwater use. The lack of control over the quality design of the
wells seems to have caused wells to have acted in some cases as drainage channels for surface
contamination.
In regions of the aquifer system where water quality monitoring data are being collected
systematically (like in CETESB's well-functioning monitoring network in São Paulo State), some
cases of organic contamination (high nitrate content) and anomalous pesticide traces have been
detected. This is also assumed to be occurring in other regions of the aquifer, particularly in
recharge areas showing high natural vulnerability, and in semi-confined areas which show an
effective connection with underlying unconfined and contaminated aquifers.
The Hot Spot area of Santana do Livramento ­ Rivera, at the Brazil/Uruguay border, is a case in
point, with one of the largest urban concentrations in the southern aquifer system's outcropping
area (around 200.000 inhabitants), and with a water supply system that relies almost entirely on
groundwater extracted from about 160 tube wells with depths between 40 m and 160 m. Here,
the aquifer faces the threats of lacking sanitation infrastructure (60% of the population served by
inadequate sanitation schemes ­ septic tanks and drains), industrial plants, and an increasing use
of pesticides and fertilizers in agriculture.
A similar situation applies to the Eastern Paraguay region, a vulnerable non-confined area that is
experiencing booming urban and agricultural expansion. Particularly in this region the stratigraphy
of the aquifer formations is not very well defined, which makes the task of determining managerial
needs and actions even more challenging.
In Ribeirão Preto, Brazil, a city with 421,000 inhabitants mainly using Guarani aquifer waters,
12% of water users do not have access to the sewerage system, generating a potential nitrate load
of 200,000 tons per year, which is considered rather elevated. A comprehensive and detailed
survey about the groundwater's chemistry, considering regional potential contaminants is one of
the main tasks of Component 1 of the project. It will be a guide for further activities such as
the-set up of a water quality monitoring network and advanced hydrochemical research.
As a transboundary aquifer with thermal qualities, the Guarani Aquifer System touches upon three
sectoral areas; namely, sustainable water management (of groundwater in particular),
transboundary water management, and energy use. These areas are elaborated below.
Sustainable (Ground)water Management: In the four countries overlying the Guarani Aquifer
System, water sector issues include: institutional arrangements for integrated water resources
management, and investments in water infrastructure and sustainable management of that
infrastructure. An important issue in all four countries is water pollution. With respect to
groundwater, this issue translates into a package of topics related to: (i) the recognition of
groundwater as a resource in need of far more attention than it has been given to date; (ii)
integration of groundwater management concerns into overall water resources legislation (which
tends to focus on surface water); (iii) assessment of groundwater availability (related to
quantification and modeling of the resource, including availability and demand scenarios); and (iv)
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groundwater protection measures (zoning, water rights, well design, construction, extraction and
pollution controls). Overall, these issues have not been adequately addressed in any of the
countries, although the governments are now moving toward completing assessments.
Transboundary Waters: The beneficiary countries have long-standing experience in
collaborating on transboundary water issues, most notably with regard to the Plata River basin
which has had a general treaty and an Intergovernmental Committee since the 1960s. In addition,
bilateral projects and specific treaties exist with respect to other water systems, such as the
Uruguay River (Uruguay and Argentina), and the Paraná River (Brazil and Paraguay). To date,
the success of these agreements has been mixed, especially with respect to hydrological allocation
and pollution control issues. The countries do recognize, however, the importance of cooperation
in transboundary waters issues. The attempt to reach an agreement on groundwater is a historical
first and will certainly enhance the dialogue on other waterbodies within the region and may
contribute to improved water management at a transboundary level. Among other things, a new
La Plata initiative is developing, with potential GEF financing.
Energy Use: In the context of this project, aspects related to energy use are of relevance. First,
the four countries use different types of resources to satisfy their energy needs, ranging from
hydropower to petroleum and gas. With increasing economic growth in the Region, energy
demands are rising, too, leading the countries ­ to varying degrees ­ to look for more efficiency in
the use of their current sources and also for substitutes. This is especially the case for heavily
hydropower-dependent Brazil, which is currently passing through an energy crisis due to drought
and increased energy demands. Concurrently, all four countries are signatories of the Kyoto
Protocol for Global Warming, and, as such, have made commitments to look for alternative,
"clean" energy sources. In this context, a careful assessment of the potential for the use of the
Guarani Aquifer System waters for low-enthalpy energy may provide alternatives to fossil-fuel
based energy sources, and opportunities for local energy savings for industry, irrigation, and/or
domestic hot water supply.
3. Sector issues to be addressed by the project and strategic choices:
The available reference documents, including those prepared during the project preparation phase
and summarizing the available knowledge on the Guarani Aquifer System, are listed in Annex 8.
The importance of, and current knowledge about, the Guarani Aquifer System in the four
countries is summarized in Table 1, which shows that actions in one country may affect the other
countries. For example, uncontrolled drilling and extraction in one country, combined with
pollution, may affect not only that country but also its neighbors. Therefore each country needs to
jointly participate in the sustainable management of the resource to preserve its own share for the
future.
Table 1: Current Knowledge and Importance of the Guarani Aquifer System
in Argentina, Brazil, Paraguay and Uruguay
Argentina
Brazil
Paraguay
Uruguay
Characteristic
Approximate
Extent of the
225,500 km2
839,800 km2
71,700 km2
45,000 km2
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Aquifer
(19.1 %)
(71%)
(6.1%)
(3.8%)
Percent of
6
10
18
25.3
Territory Occupied
Characteristics of
Supply source
Recharge and
Recharge and
Recharge and
the Aquifer
supply area
supply area
supply area
Extent of
9 deep wells for
300 to 500
About 200
135 wells for
Exploitation
thermal use
cities partially or wells, mainly for public water
entirely supplied domestic water
supply, 7 of
by the Aquifer
supply
which are for
System (70% of
thermal use
household use);
industrial uses
(25%), irrigation
and recreational
uses (5%)
Principal
1. Potentially
1. Point and
1. Point and
1. Point and
Environmental
uncontrolled
nonpoint source
nonpoint source
nonpoint source
Issues
drilling and
pollution
pollution
pollution
extraction
2. Uncontrolled
2. Uncontrolled
2. Uncontrolled
2. Subject to
drilling and
drilling and
drilling and
pollution from
extraction
extraction
extraction
other countries
3. Subject to
3. Subject to
3. Subject to
pollution from
pollution from
pollution from
other countries
other countries
other countries
Level of
Limited
Considerable
Limited
Considerable
Information
information
information
information
information
available,
available but
available
available
especially about
dispersed in
the western
different states
extent of the
and institutions
Guarani Aquifer
System
Sustainable (Ground)water Management: The general sector issue affecting all four countries
is the current lack of a management and administrative mechanism governing groundwater in the
region. Recommendations for controlling drilling, extraction, and pollution would be an outcome
of this project. Sub-sectoral issues relate to water supply, industry, and tourism, as well as
environmental management within recharge areas. To manage these issues, both over-utilization
and pollution of groundwater will need to be addressed.
The extent of available technical information, legal instruments, and institutional planning is very
uneven within the four countries. Brazil is the only country that has legislation relating to the
sustainable use of water resources, including groundwater. However, the legal basis is still
relatively fragile and needs to be further developed together with improving law enforcement.
Uruguay is operating under its 1979 Water Code, which does not include an economic value for
water. In Argentina, the federal Constitution explicitly reserves ownership of natural resources
within their jurisdictions to the provinces. The Argentine institutional framework, therefore,
distributes responsibilities and decision-making authorities at different levels, creating significant
overlaps between provincial authorities. In Paraguay, the situation is similar, although some
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attempts are being made by the Ministry of Planning to improve the coordination and regulatory
framework for water resources management. Thus, not only must the sectoral issues be addressed
in terms of the lack of a transboundary framework for groundwater management, but also
jurisdictional issues must be clarified with respect to transboundary groundwaters in Brazil and
Argentina. In addition, groundwater management arrangements at the national and subnational
level must be addressed.
This project is expected to contribute to better groundwater management by raising awareness
regarding groundwater issues, building local capacity for groundwater management, and
strengthening national legislation for groundwater management. In the case of Brazil, a specific
outcome of the project preparation activities has been the creation, during June 2000, of the
Permanent Technical Committee for Groundwater (Câmara Técnica Permanente de Águas
Subterrâneas) within the National Water Resources Council. Subsequently, the Council adopted a
resolution establishing guidelines for the inclusion of groundwater within Brazil's Integrated
Water Resources Management System. As a complement, the Brazilian Government launched a
National Groundwater Program in early 2001. In Argentina, as a specific outcome of project
preparation, the National Government created the Interministeral Committee for Groundwaters,
to help improve integrated water management. In the case of Uruguay, the Government issued a
decree controlling the drilling of wells in the Guarani Aquifer System area, providing a basis for
management activities once the proposed project is underway. These actions show both the
commitments of the countries to integrate groundwater into their overall water resources
legislation, and the impact that this high-profile project is having on an otherwise largely neglected
resource.
Transboundary Waters: The proposed project should be viewed not only within the context of
the previously mentioned agreements on surface water resources, but also with regard to their
future. Early actions to address issues such as pollution, communication, conflict management,
and water allocation, among others, are priorities in the context of the Guarani Aquifer System.
These preventive actions will take advantage of the joint water resources agreements and treaties
that currently exist, while adding the groundwater perspective. A consequent light but effective,
joint management framework will provide a basis for enhancing transboundary collaboration
between the countries concerned.
Energy: The project will consider the thermal characteristics of the waters of the Guarani Aquifer
System. Based upon current information, the thermal waters are located within pockets in some
localities. Current indications are that these thermal waters are unlikely to provide significant
energy generating potential due to their relatively low temperature (less than 50 degrees Celsius).
However, a variety of other uses may be possible, ranging from district heating and provision of
warm tap water, to thermal tourism (already highly important in northwestern Uruguay), to
industrial uses. The proposed project will review alternatives for the use of thermal waters as a
"clean" energy source, and, depending on the outcome of these investigations, will identify
opportunities to modify local energy use and policies so as to substitute for the use of fossil fuels.
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C. Project Description Summary
1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost
breakdown):
The project is comprised of six components, supported by an administrative component. GEF: US
$ 13.40 million; co-funding: US $ 13.36 million; total: US $ 26.76 million.
COMPONENT I: Expansion and Consolidation of the Current Scientific and Technical
Knowledge Base on the Guarani Aquifer System
Component I develops a sound scientific and technical basis for the determination of the priority
transboundary issues and associated strategic remedial actions for the protection of the Guarani
Aquifer System. It is essential for the determination of an appropriate joint management
framework. GEF: US $ 4.57 million; co-funding: US $ 5.34 million; total: US $ 9.91 million.
COMPONENT II: Joint Development and Implementation of the Guarani Aquifer System
Management Framework
Component II is the core of the project and provides for an agreed technical, institutional,
financial, and legal framework for management of the Guarani Aquifer System. Component II
includes (i) harmonization and enhancement of data gathering networks, (ii) creation of a data
management system serving the Guarani Aquifer System, (iii) development of joint institutional
arrangements for the management of the Guarani Aquifer System, and (iv) formulation of
strategic actions leading to the integration and optimization of development initiatives and
proposals within the Guarani Aquifer System region. GEF: US $ 3.49 million; co-funding: US $
3.52 million; total: US $ 7.01 million.
COMPONENT III: Public and Stakeholder Participation, Education and Communication
Component III provides for the practical involvement of stakeholders in decision-making affecting
the Guarani Aquifer System through both formal and informal educational and informational
programming. A Guarani Aquifer System Citizens' Fund designed to provide cost-sharing funding
to NGOs and academic institutions is an integral feature of this Component. GEF: US $ 0.77
million; co-funding: US $ 0.54 million; total: US $ 1.31 million.
COMPONENT IV: Project Monitoring and Evaluation, and Dissemination of Project
Results
Component IV consists of: (i) tracking evolvement of agreed indicators, including GEF-IW
process, stress reduction, and environmental status indicators - comprised of goals, criteria, and
standards, and implementation of a monitoring and evaluation system to oversee and evaluate
Project progress in addressing and achieving said goals; and (ii) dissemination of project results
within and outside of the Guarani Aquifer System region, including the implementation of
measures for consultation and coordination between GEF-IW project managers working in the
Latin American region (See Annex 19). GEF: US $ 0.26 million; co-funding: US $ 0.22 million;
total US $ 0.48 million.
COMPONENT V: Development of Management and Mitigation Measures within
Identified "Hot Spots"
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Component V develops practical mechanisms and measures for the mitigation of current priority
problems in four Hot Spots: (i) two identified transboundary localities within the Guarani Aquifer
System area; (Argentina/Uruguay and Uruguay/Brazil); (ii) one recharge/discharge area of the
Guarani Aquifer System (Paraguay); and (iii) a heavily urbanized area of the Guarani Aquifer
System (Brazil), supporting ongoing mitigation and protection measures being undertaken by the
Government of Brazil and State of São Paulo. The objective of Component V is to develop and
test effective means and costs of quantifying, analyzing, managing, and remediating the impacts of
known threats affecting specific, representative areas within the Guarani Aquifer System region
(See Annex 18 for detailed description). GEF: US $ 2.31 million; co-funding: US $ 1.42 million;
total US $ 3.73 million.
COMPONENT VI: Assessment of Geothermal Energy Potential
Component VI explores potential future geothermal energy uses of the Guarani Aquifer System.
The objective of Component VI is to quantify and determine the potential value of the Guarani
Aquifer System as a source of "clean" geothermal energy, and to communicate this assessment
and appropriate guidelines with respect to sustainable development and utilization of any potential
geothermal energy output of the Guarani Aquifer System to the respective stakeholders, including
the energy ministries within the Guarani Aquifer System region. GEF: US $ 0.20 million;
co-funding: US $ 0.08 million; total US $ 0.28 million.
COMPONENT VII: Project Coordination and Management
Component VII supports project management and coordination. Component VII comprises the
activities to be carried out by the Guarani Secretariat and the operational activities of the
coordinating and executing units in the respective countries, as described in Section E.4. GEF: US
$ 1.80 million; co-funding: US $ 2.24 million; total US $ 4.04 million.
Table 2: Guarani Project costs and financing sources

Indicative
Bank
% of
GEF
% of
Component
Sector
Costs
% of
financing
Bank
financing
GEF
(US$M)
Total
(US$M)
financing
(US$M)
financing
1) Expansion of the
9.91
37.0
0.00
0.0
4.57
34.1
Knowledge Base
2) Development of a Joint
7.01
26.2
0.00
0.0
3.49
26.0
Management Framework
3) Public and Stakeholder
1.31
4.9
0.00
0.0
0.77
5.7
Participation
4) Monitoring, Evaluation
0.48
1.8
0.00
0.0
0.26
1.9
and Dissemination
5) Development of
3.73
13.9
0.00
0.0
2.31
17.2
Management and Mitigation
Measures in Hot Spots
6) Assessment of Geothermal
0.28
1.0
0.00
0.0
0.20
1.5
Energy Potentials
7) Project Coordination and
4.04
15.1
0.00
0.0
1.80
13.4
Management
Total Project Costs
26.76
100.0
0.00
0.0
13.40
100.0
0.00
0.0
0.00
0.0
0.00
0.0
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Total Financing Required
26.76
100.0
0.00
0.0
13.40
100.0
Detailed Counterpart and other
Components (US$ Million)
Co-financing Sources
1
2
3
4
5
6
7
Total
Counterpart financing provided by the
4.87
3.40
0.49
0.22
1.01
0.08
1.92
11.99
governments of the four participating
countries
Co-financing provided by the IAEA*
0.30
-
-
-
-
-
-
0.30
Co-financing provided by the BGR**
0.14
0.05
-
-
0.41
-
-
0.60
Co-financing provided by the World Bank
0.03
0.07
-
-
-
-
0.1
Netherlands Water Partnership
Co-financing provided by the OAS
-
-
-
-
-
-
0.32
0.32
Co-financing provided by Beneficiaries
-
-
0.05 -
-
-
-
0.05
Total Co-financing
5.34
3.52
0.54
0.22
1.42
0.08
2.24
13.36
*Co-financing by the IAEA includes $300,000 in a first phase of two years, with another $300,000 envisaged for a second phase.
** Co-financing by the BGR has been confirmed. Finalization of this contribution depends on agreement between the GOP and BGR.
2. Key policy and institutional reforms supported by the project:
The key policy and institutional reforms specifically sought with regard to the Guarani Aquifer
System are: (i) recognition of the Guarani Aquifer System as a valuable transboundary resource;
and (ii) creation of a framework for the shared management of the Guarani Aquifer System,
including joint institutional-legal arrangements and data sharing. The proposed project would
contribute to advancing policies relating to transboundary groundwaters in the four countries,
especially with respect to a transboundary legal and institutional framework that is currently
lacking, and national groundwater institutional and legal frameworks that are rather disparate or
missing. Specifically, the project will elaborate a Strategic Action Program encompassing, inter
alia, a specific management and institutional framework for the Guarani Aquifer System. This
framework could be expected to influence legislation regarding groundwater resources at the
national level - and will eventually influence provincial or state levels, where applicable - within
the participating countries and give impetus to improved groundwater management generally. In
developing the institutional framework the particular characteristics of the four countries' political
organization will be taken into account.
3. Benefits and target population:
About 15 million people live in the Guarani Aquifer System region. While not all of these are
supplied with Guarani Aquifer waters, increasing numbers of users can be anticipated to utilize
this resource as a result of population growth and increased industrial consumption. This trend
will be enhanced as a result of the increasing pollution of surface waters, which - even if the
countries are making efforts to remediate the situation - makes water from the Guarani Aquifer
System more attractive. Therefore, target beneficiaries are the current and future populations
within the Guarani Aquifer System region in the four countries.
In the long term, the expected benefits include: (i) a sustainable supply of safe water for human
populations; (ii) high-quality water for industry; (iii) a sustainable supply of thermal water for
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tourism, industrial, and municipal uses; and (iv) reduced conflict potential due to the use of
Guarani Aquifer System waters in transboundary areas.
In the short and medium terms, beneficiaries also are the individuals and institutions who are
active in the management of the Guarani Aquifer System. Through training and educational
programs their capacity to contribute to the sustainable management of the Guarani Aquifer
System will be greatly enhanced. The project is designed to internalize the experience generated
by the project into the know-how of the four countries.
Global benefits to be derived from the improved management of the Guarani Aquifer System
relate to the integrated management and use of this transboundary resource in a sustainable
manner. Without this GEF-financed project, it is highly likely that the countries would not take
measures at this stage to protect the transboundary water resources of the Guarani Aquifer
System. Use of water resources at the national and sub-national levels would most likely continue
until a crisis arises, at which point the reversal of negative effects would be difficult and costly.
Actions taken jointly at this stage by all four countries will provide a basis for considerable global
(transboundary) benefit through effective pollution and overdrafting controls, especially in
recharge and abstraction areas, and improved land management, including, for instance, erosion
control. In this regard, the development of specific, land use-related management and mitigation
measures (through the targeted pilot demonstration projects), contributing to both global benefits
and specific target groups, forms an important output of this project.
The primary goal of the project is to reach a four-country joint management framework for the
Guarani Aquifer System and achievement of this objective will create the most benefits. At the
same time there are significant benefits to be realized by the project also through all other project
components. These benefits will be valid with or without a four-country agreement and they will
relate to the strengthening and involvement of subnational entities, including state/provincial
agencies, water supply utilities, academia and NGOs in project implementation. Their involvement
will ensure that aquifer management can take place in a decentralized and sustainable manner once
the project is concluded. This specifically includes the Provinces in Argentina, which have the
legal responsibility for water resources management, and the States in Brazil.
Specifically, Components 1, 3, 5 and 6 will create immediate benefits in this regard and their
outputs can be used by the countries, their subnational entities and stakeholders in national and
transboundary groundwater management, independently of the formalized agreement. This is of
particular importance because a formalized agreement is depending on the sovereign legislative
processes in each country and cannot readily be programmed to coincide with project completion.
In this context it will be important, however, to make the Strategic Action Program realistic and
feasible in order to go forward even in the event that formalization of the joint management
framework should take time to materialize.
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4. Institutional and implementation arrangements:
Given the multinational character of the proposed project, institutional and implementation
arrangements were discussed in detail during project preparation. Since the project is intended to
bring about significant institutional change (from the current lack of coordinated management of
the Guarani Aquifer System to its sustainable long-term management), the future institutional
arrangements to be developed as a component of this project are an essential element that will
determine its long-term success. All the proposed activities will be driven by a Project Steering
Committee (CSDP: Consejo Superior de Direccion del Proyecto), with coordination of the
technical aspects of the project being provided by a Coordinating Council (CC: Coordinacion
Colegiada). The day-to-day activities of the Project will be managed by the General Secretariat
(SG: Secretaria General del Proyecto Sistema Acuifero Guarani) under the direction of the
OAS, with oversight from the CC. Activities within each country will be carried out by
country-based project executing units (NPEU - National Project Executing Unit - Unidad
Nacional para la Ejecucion del Proyecto), the heads of which (the four National Technical
Coordinators, one from each country) will form the CC. Details are elaborated in Section E4 and
Annex 11.
D. Project Rationale
1. Project alternatives considered and reasons for rejection:
Project alternatives considered were: (i) to do nothing (laissez-faire), or (ii) to carry out the
project in only one or two countries. Alternative (i) was rejected due to the fact that the Guarani
Aquifer System is clearly showing signs of initial stress. Thus, by taking preventive measures now,
negative effects on groundwater quality and quantity can be mitigated and, perhaps, largely
avoided. Given that groundwater pollution is very expensive and in some cases almost impossible
to reverse, this opportunity to prevent damage to the aquifer obviates the do nothing alternative.
By completing a relatively low-cost preventive project, embodied within a Strategic Action
Program, the longer-term costs can be minimized in an effective manner. Similarly, groundwater
overdrafting severely endangers any aquifer's sustainability, may reduce its capacities, affect
present uses and restrain future developments as well. Again, a low-cost preventive water
management framework, within the SAP, may prove to be crucial in solving or mitigating such
problems. Likewise, Alternative (ii) was rejected because of the transboundary nature of the
waterbody, which, by definition, implies that degradation of the resource in one country will have
an impact on the other riparian countries. Agreements to preserve this type of waterbody need to
be mutual and mutually enforced. Work within one or two countries to create a management
system for the Guarani Aquifer System was therefore deemed to be suboptimal.
2. Major related projects financed by the Bank and/or other development agencies (completed,
ongoing and planned).
Latest Supervision
Sector Issue
Project
(PSR) Ratings
(Bank-financed projects only)

Implementation
Development
Bank-financed
Progress (IP)
Objective (DO)
Irrigation
Uruguay Loan 3697: Irrigation
S
S
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and Natural Resources Project
Water Supply, Sanitation and Water
Brazil Loan 3505 (Paraná):
S
S
Resources Management
Water Quality and Pollution
Control
Natural Resources Management
Paraguay Loan 3708: Natural
S
S
Resource Management I
Water Supply and Sanitation
Paraguay Loans 4222 and
S
S
4223: 4th Rural Water Supply
and Sanitation
Natural Resources Management
Paraguay ­ Mbaracayu
Biodiversity (under preparation
- no ratings available yet)
Natural Resources Management
Brazil Loan 4060: Rural
S
S
Poverty ­ Paraná Land
Management
Natural Resources Management
Brazil Loan 3160: Land
S
S
Management II ­ Santa
Catarina
Natural Resources Management
Brazil Loan 4148: Natural
S
S
Resources Management
Water Supply and Sanitation
Uruguary Loan 4556:
S
S
OSE-Modernization and System
Rehabilitation
Other development agencies
International Water Resources
Implementation of the Strategic
Management
Action Program for the Bermejo
River Binational Basin
(Argentina and Bolivia),
GEF/OAS/UNEP
International Water Resources
Implementation of Integrated
Management
Watershed Management
Practices for the Pantanal and
Upper Paraguay River Basin,
GEF/OAS/UNEP
Transboundary Aquifer Research
UNESCO
Project (includes Guarani Aquifer)
IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory)
3. Lessons learned and reflected in the project design:
The Project incorporates lessons learned in two strategic ways: first, by using experience gained in
the water and related sectors within each of the four countries, and, second, by using the lessons
learned by the World Bank and OAS with regard to GEF International Waters Projects.
National experience in the countries. Good institutional policies are essential to good water
resources management, be they surface or ground waters. Experience in Brazil, particularly in
recent years, has illustrated that policy dialogue is especially fruitful in the context of the
preparation of specific projects (e.g., the Pollution Control Projects in Minas Gerais, Paraná and
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São Paulo, which have led to significant institutional change in each State; in Ceará where
PROURB was a major catalyst in the implementation of the State's Water Resources Law; and in
PROAGUA, which uses a two-track approach of demonstration projects and institutional
change). Notwithstanding, groundwater has been largely neglected in all four countries, in spite of
its overriding importance for water supply, especially in Uruguay and in certain regions of
Argentina, Brazil and Paraguay. In Paraguay, the World Bank-financed 4th Water and Sanitation
Project relies exclusively on groundwater. In this sense, the Guarani Project can have, and already
has had, a catalytic effect on groundwater management in the countries in general. In this context,
ongoing projects in the region and the furtherance of the sectoral dialogue on (ground)water
resources management will be taken into consideration.
GEF International Waters Projects. A number of issues relating to GEF International Waters
Projects were highlighted at two recent events: the World Bank stakeholder consultation held
during June 2000, and the GEF International Waters Conference held during October 2000. The
latter event included the then three GEF Implementing Agencies (IAs: the World Bank, United
Nations Development Programme, and United Nations Environment Programme) as well as
project staff and policy makers from around the world. The messages emerging from these events
underlined the need for commitment from the countries and local demand for the project, both of
which exist with respect to the proposed project. In addition, it was deemed essential that other
agencies (multilateral and donors), having a stake or on-going projects in the region, be involved.
In the case of the Guarani Project:
·
the General Secretariat of the Organization of American States (OAS), which has been
active as Executing Agency for UNEP-implemented GEF International Waters Projects, including
projects on the Bermejo, Upper Paraguay, and San Juan River Basins, served as the executing
agency for the preparation of this project as will serve as the executing agency for its
implementation;
·
the United Nations Education, Scientific, and Cultural Organization (Unesco), under the
auspices of their Transboundary Aquifer Project, participated in Guarani workshops during the
project formulation period;
·
the International Atomic Energy Agency (IAEA), which has previously been active in all
of the four countries, will contribute to the geohydrological aspects of the Guarani Project at the
invitation of the participating countries; and,
·
the German Government, which has provided long-standing support to groundwater
research in the Paraguayan Chaco and, recently, also in the Zona Oriental, has confirmed the
provision of technical and institutional development assistance to the Paraguayan portion of the
project through the German Geological Survey (Bundesanstalt fuer Geowissenschaften und
Rohstoffe).
An important aspect of project design is the multilateral agreement on the institutional framework
for the conduct of the transboundary waterbody project and Strategic Action Program
formulation. Communication among the different parties is essential, and the project coordination
units in each country (UNPPs: Unidades Nacionales de Preparación del Proyecto), created
during project preparation, are proposed to be continued as a mechanism by which stakeholders
from governments, subnational-level governments, and civil society (including NGOs and
universities) will participate in the project. A number of workshops at both the national and
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regional level are included as a means of bringing together the actors from the four countries. The
regional level meetings will be facilitated by the Project Steering Committee (CSDP: Consejo
Superior de Dirección del Proyecto). Use will be made of World Bank multi-country video
facilities, as a practical means of bringing stakeholders to the table without incurring high
transaction and financial costs of international travel. The hitherto positive experience in this
regard is reflected in the design of the institutional arrangements for project implementation.
GEF experience shows that reliance on heavy administrative structures for the management of
GEF International Waters Projects is not necessary, and may even be counterproductive due to
the elevated recurrent cost. In elaborating the institutional framework for the management of the
project, institutional arrangements have been designed to be as pragmatic and light as possible. To
this end, the day-to-day execution of the project will be undertaken by a small but effective
Guarani Aquifer System Secretariat, which will serve as the executive element of the CSDP and
coordinate the activities carried out by the National Project Executing Units.
The project also includes a number of pilot projects in identified Hot Spots. Experience in other
World Bank projects has shown that such projects, to serve their purpose, need good baseline
data and well-designed monitoring and evaluation. Complementary components to accommodate
this need have been designed.
Finally, GEF experience has indicated that a significant lag time may occur between the
preparation of the Strategic Action Program (SAP) and its implementation. For this reason, this
project has been designed as the first phase of a larger Program for the Protection and Sustainable
Management of the Guarani Aquifer System. Therefore, the elaboration of projects to implement
the SAP will take place during the last year of the proposed project. Such projects may be
financed from a variety of sources, including national governments, the World Bank, other
multilateral banks, donors and the private sector.
4. Indications of borrower and recipient commitment and ownership:
Annex 15 provides a list of the stakeholders that participated in the preparation of this project.
Their participation is summarized below. In addition, Letters of Endorsement of the project from
the designated GEF country-based Focal Points are appended hereto as Annex 16.
National level. At the national level the project has received strong support from governmental
institutions that have actively participated in project preparation activities and workshops. The
Secretariat of Water Resources (SRH), Brazilian Ministry of Environment, sponsored, with its
own resources, the meeting held in Foz do Iguaçu (Brazil), where the Guarani Project was first
identified and discussed with the different partners as a project concept for GEF support.
Subsequently, the Secretariat of Water Resources of Argentina, the National Hydrographic
Directorate of Uruguay, and the Ministry of Energy and Mining and the Ministry of Public Works
of Paraguay as well as the recently-created Paraguayan Secretariat of Environment have
sponsored project workshops in Santa Fé (Argentina), Asunción (Paraguay), and Salto
(Uruguay), respectively. Staff from all four countries have participated in project preparation
activities. All four governments have created and staffed their respective project preparation units
using local financial resources. Representation of the national governments in official meetings has
- 20 -

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been strong, including representation at the secretarial and ministerial levels. The preparation of
the project, using PDF/B funds, received the full endorsement of the GEF focal points in all four
countries during 2000, and during March 2001 with respect to complementary PDF/B funding. -
In addition the four Ministries of Foreign Affairs have reached an agreement to elaborate a first
joint document indicating the countries' agreement with the objectives of the project and
developing some first basic principles for collaboration regarding the Guarani Aquifer System.
Subnational/non-governmental level. At the subnational and/or non-governmental levels, the
project has received support from state governments in Brazil and provincial governments in
Argentina (e.g., the State of São Paulo, the State of Paraná, and the Province of Santa Fé).
Strong support and full collaboration also has been forthcoming from the universities in the region
(e.g., Universidad Nacional del Litoral and Universidad de Buenos Aires, Argentina; Universidade
Federal do Paraná, Brazil; Universidad Nacional de Asunción, Paraguay; and Universidad de la
República Oriental del Uruguay). Similarly, the project has been supported by a number of
nongovernmental organizations (NGOs) that have been actively involved in the project
preparation activities (e.g., Brazilian Groundwater Association - ABAS, Brazilian Water
Resources Association - ABRH, among others). Information-sharing, collaboration, and
involvement by large numbers of stakeholders (which have often exceeded all expectations) have
generated many quality interventions and suggestions which have contributed to project
preparation. Social interest and support for the project was equally high, as demonstrated by the
large number of articles published in national magazines, newspapers and on-line within the
region, and number of special television reports. The high level of interest of stakeholders at the
local level provides positive evidence of the commitment of the four governments at national and
local levels. Awareness by all of the governments that transaction costs of this project are
relatively high has not been a major obstacle to project preparation.
Supranational level. Both MERCOSUR--the Southern Common Market--through its
Subgroup 6 (Environment), and the OAS, have supported project preparation. The MERCOSUR
had been contemplated as the Executing Agency for the project. One of the reasons why this
option was rejected was due to the fact that the MERCOSUR at this point does not have a legal
personality, which would permit it to receive grant resources.
5. Value added of Bank and Global support in this project:
The World Bank has operations and long-standing policy dialogues regarding different aspects of
water management in each of the four countries. A large number of water projects have been
implemented with World Bank support in the region. In Brazil, the Bank has conducted an
extensive review of the water resources, irrigation, and water supply and sanitation sectors,
leading to the development of an integrated water supply and water resources management
strategy for its operations in Brazil. Jointly with the Government of Argentina, the World Bank
has recently completed a comprehensive review of the water sector, and the final report of this
study is being disseminated. During 2001, the World Bank was conducting a similar
comprehensive review of the water sector together with the Government of Uruguay. The
combination of the sectoral knowledge of the World Bank and its experience in financing projects
in the region is particularly supportive of this project.
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The recent First Biennial GEF International Waters Conference, held in Budapest (Hungary)
between October 14-18, 2000, demonstrated the World Bank to be a leading agency in
implementing GEF International Waters Projects. Considerable in-house expertise and
internationally-based knowledge of the main issues relating to such initiatives has been developed.
Currently, the Bank is involved in the implementation and/or preparation of some twenty-three
GEF International Waters Projects in Latin America, Europe, Africa, South East Asia, and the
Middle East. In addition, the World Bank is involved in fifteen other, related GEF projects dealing
with coastal and marine issues, and nine aquatic biodiversity projects, having International Waters
aspects.
Global support to the Project is essential due to the nature of transboundary waterbodies. The
Guarani Aquifer System is unique in the world due to its size, good water quality, and thermal
energy potential. It therefore constitutes an important strategic transboundary reserve in the
region. Nevertheless, without global support for this project, short-term needs may supersede the
strategic, integrated management of the resource, and the countries might decide to continue
unilateral exploitation of the resource. To address this concern, GEF support, in this case, should
focus primarily on the development and implementation of mechanisms and an institutional
framework to prevent over-exploitation and degradation of this transboundary resource--the
preventive focus of this project is unique within the GEF International Waters Program. In
addition, this project would be the first groundwater project supported by the World Bank and
GEF, further contributing to the global importance of this initiative.
E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)
1. Economic (see Annex 4):
Cost benefit
NPV=US$ million; ERR = % (see Annex 4)
Cost effectiveness
Incremental Cost
Other (specify)
The economic evaluation methodology is the GEF incremental cost analysis. Although a number
of baseline activities touch upon the proposed project, the incremental costs are substantial.
Project investment will generate and bring together new data of interest to all four countries, and
would put in place a joint institutional arrangement for aquifer management that would otherwise
not exist. Thus, baseline investment is limited to some monitoring activities currently in place in
Brazil and Uruguay, and nonpoint source pollution control activities and the implementation of
groundwater legislation in Brazil.
The benefits to be expected from the project are of both a national and global nature, and mainly
relate to the avoidance of future costs. Groundwater pollution is extremely costly and difficult to
remediate. By putting in place a preventive mechanism, damage, and, thus, clean-up costs, can be
avoided. A further benefit would be the preservation of a strategic reserve to supplement other
water supply options within the region. This benefit is transboundary in that the preservation and
rational use of the Guarani Aquifer System will preserve a multi-national natural resource for
future generations, of apparently `unlimited' quantity and high quality. Groundwater overdrafting
effects are also extremely difficult to remediate. Implementing water management specific
schemes as a preventive mechanism is very cost effective. It will contribute to preserve the
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Guarani Aquifer System as a strategic reserve, with its benefits being of transboundary nature,
helping preserve and rationalizing water abstractions from the Guarani Aquifer System. Although
its actual capacity is currently unknown, the studies supported by this project will form the basis
for establishing the capacity of the Guarani Aquifer System and rationally planning its future
potential uses on a sustainable basis. Preliminary investigations suggest that, in the absence of the
proposed project, the countries are not taking, or planning to take, any specific actions with
regard to preservation of the Guarani Aquifer System in its transboundary dimension.
All four countries currently benefit from its use. All four countries use its waters for human
consumption. More than 300 cities use the Guarani Aquifer waters for domestic supply (Table 1).
In this regard, the Uruguayan Water and Sanitation Agency (OSE) estimates, for example, that it
is cheaper to pump clean Guarani Aquifer water from significant depths than to abstract and treat
contaminated water from surface sources. It can be expected that if other sources become more
polluted, the Guarani Aquifer System will increasingly become the economically viable source of
choice. Likewise, all four countries make limited use of its waters for agricultural irrigation
purposes. Uruguay also uses its thermal waters for tourism, and Argentina has recently started
using its waters for the same purpose. As these uses intensify, conflicts are likely to result in the
absence of an agreed transboundary water management framework. For example, the Uruguayan
authorities have already expressed concern that the availability of thermal waters on the
Uruguayan side may have been reduced since the opening of the Argentina thermal site. Most of
the possible associated benefits, which might ultimately be found to be substantial, are considered
to be incremental for the four countries, given the current state of knowledge of the Guarani
Aquifer System.

2. Financial (see Annex 4 and Annex 5):

NPV=US$ million; FRR = % (see Annex 4)
An important financial issue to be addressed is the sustainability of project intervention. While the
project will have very limited infrastructure investments, a monitoring system and database will be
designed and implemented. To be of use in the monitoring and management of the Guarani
Aquifer System, the monitoring and management systems will have to be adequately maintained.
In addition, it is anticipated that a long-term coordinating mechanism, such as the proposed
General Secretariat of the project, would be sustained. The recurrent cost of such a structure
would have to be financed in a sustainable manner. To this end, Component II, Creation of a Joint
Management Framework for the Guarani Aquifer System, includes a specific activity aimed at the
definition of a sustainable financing mechanism for the long-term management of the Guarani
Aquifer System, including consideration of water and concession fees. At the same time, given
that the Guarani Aquifer System is mainly confined and that well drilling is very costly, long-term
monitoring (transaction) costs will be far lower than would be the case for a surface water system
of the same extension. The expected financial burden on the countries is therefore expected to be
manageable.

Fiscal Impact:
The fiscal impact of the project is estimated as the cash contribution of the four countries to the
project minus taxes. The total counterpart contributions by the countries to the project are
estimated to be about US $ 11.99 million, as both cash and in-kind contributions. Of these, US $
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2.14 million are taxes foregone (since the OAS has been exempted from tax by the countries),
leaving a total fiscal impact of US $ 9.86 million, including in-kind contributions, which are
financed by the countries.
3. Technical:
(see Annex 17: GEF STAP Review)
On the scientific and technical front, the activities and tasks selected are designed to generate that
information regarded as essential to underpin effective groundwater management and to guide
sustainable resource development and aquifer protection requirements. It must be recognized that
some of this information is more efficiently acquired at local scale through pilot sub-projects
(Component V), whilst other parts have to be generated at sub-regional (aquifer) scale
(Component I). It will be essential to achieve a careful balance and close coordination between
these two components. In addition, Component I is relatively large, containing numerous,
closely-linked sub-components and tasks. These will require integrated planning and sensitive
supervision by the General Secretariat to ensure on-time completion of the main deliverables of
these Components - key hydrogeological information and the numerical models of the Guarani
Aquifer System - needed to formulate the Strategic Action Program and Management
Framework.
It is also important to recognize that groundwater investigations and development best proceed as
a phased and iterative process, and that close monitoring of aquifer response to water-supply
development is normally the most cost-effective way of reducing uncertainty in numerical
modeling of aquifers and groundwater resource estimation. Therefore, Components I and V are
deliberately phased to allow an element of re-focusing and prioritization, in the light of the results
generated during the first 18 to 24 months, at the time of the project mid-term review.
4. Institutional:
A four-country, transboundary project has high transaction costs, and an appropriate mechanism
for implementation is required. The project will utilize a similar management mechanism to that
employed during project preparation. For project preparation, one national project coordination
unit (UNPP) was created in each country, supported by eight State-level units (UEPPs) in the
case of Brazil. These Units functioned as technical entities. Overall policy-level decision-making
was through the Steering Committee (CSPP), comprised of representatives of the respective
national agencies with responsibility for water resources, foreign affairs, and environment, as well
as representatives of the Organization of American States (OAS) and the World Bank. During the
project preparation phase, the four countries indicated the OAS as the executing agency for the
project, due to the multi-country character of the project. The OAS supported the project from its
Washington Headquarters, through its country-based offices, as well as through contracted staff,
including a Project Coordinator (Secretario General) and two technical staff, funded with GEF
project preparation funds. The Government of Uruguay placed offices in Montevideo at the
disposition of the project.
Since these arrangements worked well for project preparation, few changes will be made during
project implementation. As shown in the diagram below, the Project Steering Committee (CSDP:
Consejo Superior de Direccion del Proyecto) is anticipated to have overall charge of the project,
supported by a Coordination Group (CC: Coordinacion Colegiada) comprised of the four
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National Technical Coordinators appointed to head the four country-based Project Executing
Units (NPEU) - Unidad Nacional para la Ejecucion del Proyecto). This Coordination Group
would provide oversight and direction to the Project Coordinator (Secretario General) and
General Secretariat (SG) staff, who would serve as liaison on a day-to-day basis between the
NPEUs, the OAS and the World Bank. The General Secretariat will be based in Montevideo.
A further institutional issue is the development of an operational institutional and legal framework
for Guarani Aquifer System management. An operational institutional framework will be an
output of the project. An appropriate process to arrive at a commonly agreed technical proposal
for such a framework will be part of the Project Implementation Plan. Partners and countries are
aware, however, that the final framework to be proposed would need to be light in order to be
efficient and sustainable in the long run.
Donors/Coop.
Steering
GEF/WB
Agencies
Committee
Coordination Group
General Secretariat/
Executing Agency
NPEU
NPEU
NPEU
NPEU
Argentina
Brazil
Paraguay
Uruguay
4.1 Executing agencies:
The OAS will be the Executing Agency for the project and will act on behalf of the four countries.
The OAS will be responsible to the World Bank (as Implementing Agency) and GEF to ensure
that applicable rules and procedures are adhered to. In addition, the OAS will ­ with prior
agreement by the CSDP ­ contract the Project Coordinator (Secretario General), the technical
support team of three professionals, a procurement specialist and an office manager to staff the
General Secretariat, and provide general administrative oversight.
In addition to the OAS, national (local) executing agencies have been confirmed in each of the
four countries. The national executing agencies for the project will be the Subsecretariat for
Water Resources in Argentina, the National Water Agency in Brazil, the Secretariat for
Environment in Paraguay, and the National Directorate for Hydrography in Uruguay. These local
executing agencies will assist the National Technical Coordinators in the conduct of the project
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activities, and assist the NPEUs through provision of office space and support services to the
extent that these are required. Such support is considered within the counterpart contributions to
the project. Representatives of the local executing agencies will also serve on the CSDP as
indicated below.
4.2 Project management:
All the proposed activities will be driven by a Project Steering Committee (CSDP: Consejo
Superior de Direccion del Proyecto). The Project Steering Committee will be comprised of three
members from each country. These will be representatives of the respective national agencies with
responsibility for foreign affairs, water resources, and environment. The four National
Coordinators will participate ex officio in the meetings of the CSDP. In addition, one
representative each of the World Bank and OAS may be invited to participate in meetings of the
CSDP. The other GEF Implementing Agencies, and participating donor countries and agencies,
will be informed of, and may participate in, meetings of the Project Steering Committee in an ex
officio capacity. The Project Steering Committee will meet at least two times per year; the
Committee may make use of the World Bank video-conferencing facilities for additional meetings
as may be necessary. The Project Steering Committee will have a rotational chairmanship (
presidencia). The first chairmanship will be held by the delegation of Paraguay.
The technical program of the project will be supervised by a Coordination Group (CC:
Coordinacion Colegiada) comprised of the four National Technical Coordinators appointed by
their countries' Project Executing Agencies to head the four country-based NPEUs. This
Coordination Group will provide oversight and technical direction, as agreed by the CSDP and
through the work plans elaborated in the project operational program, to the Project Coordinator
(Secretario General) and General Secretariat (SG) staff, who will serve as liaison on a day-to-day
basis between the NPEUs and the OAS and the World Bank.
A General Secretariat of the Guarani Aquifer System Project, comprised of the General Secretary,
technical staff members, their support staff, and the OAS, will manage the day-to-day operations
of the project, as agreed by the CC and elaborated in the project operational program. The
General Secretary and Secretariat staff will be contracted by the OAS and will coordinate the
conduct of project activities through the NPEUs. The Secretariat will endeavor to ensure the
technical quality of the project, prepare project documents and reports, and support the
monitoring, evaluation and reporting requirements of the World Bank. The Secretariat will also
be responsible for drafting the Transboundary Diagnostic Analysis and the Strategic Action
Program, with inputs from the NPEUs and project consultants. Further, the General Secretariat
will facilitate the flow of information and inputs from stakeholders with respect to the project at
the regional level. In particular, the Guarani Secretariat will ensure that adequate attention is
given to the views and concerns of indigenous community organizations and other CSOs active at
the regional level. In addition, utilizing the IWRN and related mechanisms, the General Secretariat
will participate in regional communication and coordination opportunities among GEF-IW
projects and programs being executed within the Latin American region.
Within each of the participating countries, a National Project Executing Unit (NPEU) will be
established by each country according to country priorities and rules. The national Technical
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Coordinator for each country will manage the activities of the project executing units in each
country. These units will be responsible for recommending short-listed nominees for consultancies
and the conduct of the project activities to the OAS. In addition, during project execution, the
NPEUs will provide general oversight and assistance to the consultants so as to facilitate timely
completion of project activities and the necessary degree of quality control/quality assurance with
respect to the conduct of project tasks. The NPEUs will also facilitate the flow of information and
inputs from stakeholders with respect to the project at the national and subnational levels. In
particular, the NPEUs will ensure that adequate attention is given to the views and concerns of
indigenous community organizations and other CSOs active at the national and subnational levels
as envisioned in Component III of the project.
At its first meeting, the Project Steering Committee will adopt operating procedures for the
conduct of its business. The Project Steering Committee will agree administrative and reporting
procedures consistent with World Bank standards and operating procedures as set forth in the
Project Implementation Plan (PIP). Finally, the Project Steering Committee, at its inaugural
meeting, shall conduct any other such business as may be required to initiate project Components,
and set a date for the second meeting of the Project Steering Committee. Subsequent meetings of
the Project Steering Committee shall be scheduled by the Project Steering Committee but shall be
held at least every six months during the project period.
Activities of national personnel, with the support of the national executing agencies, will be based
upon preparatory work and Terms of Reference agreed with and approved by the Project Steering
Committee, and consistent with the bidding and other procurement practices of the World Bank.
The General Secretary and OAS will coordinate field activities, as directed by the Project Steering
Committee and supported by the
General Secretariat. All project activities will be conducted within the Guarani Aquifer System
area.
4.3 Procurement issues:
A procurement capacity assessment has been carried out by a World Bank Procurement
Specialist, with satisfactory findings, and approved by the Regional Procurement Advisor. Details
regarding procurement arrangements are described in Annex 6. The full assessment is included in
the list of project documents on file.
4.4 Financial management issues:
A financial management assessment has been carried out by a World Bank Financial Management
Officer, with satisfactory findings, and approved by a Regional Financial Management Specialist.
Details regarding disbursement arrangements are described in Annex 6. The full assessment is
included in the list of project documents on file.
5. Environmental:
Environmental Category: B (Partial Assessment)
5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including
consultation and disclosure) and the significant issues and their treatment emerging from this analysis.
This is an environmental project. Its objective is to ensure the sustainable management of the
extensive Guarani Aquifer System. The project seeks to prevent the environmental damage, linked
to groundwater pollution and depletion, that would otherwise come about because of poor
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knowledge and lack of policy coordination between the four countries (and their local
governments) which share the aquifer. In addition to improving planning and policy formulation,
the project supports specific environmental protection measures, including: (i) improved control
of water pollution (from point and nonpoint sources); and (ii) designation of critical groundwater
recharge areas requiring conservation or other special management. Although some future uses of
the water resources of the Guarani Aquifer System might involve adverse environmental impacts,
the project would study these potential impacts and promote plans and policies to adequately
control them. The project is expected to be highly positive from an environmental standpoint.
The project itself will not include any infrastructure investments. It may take advantage of some
wells to be constructed by private or public utilities for other purposes. However, the location of
any such wells to be used for project scientific purposes would be chosen in the context of
promoting the environmentally sustainable use of the aquifer.
Likewise, Component VI is designed to assess the potential economic uses of the thermal waters
of the Guarani Aquifer System. Depending upon the results of this assessment, concepts for future
utilization of these thermal waters may be designed. The potential post-project development of
thermal water resources might require mitigation of possible adverse environmental effects related
to access road construction, thermal and chemical discharges, and noise. Additional measures to
protect specialized aquatic biodiversity in thermal springs or pools may be required. Any needed
or recommended environmental mitigation measures for potential future thermal water
development will be identified through the environmental assessment (to be carried out in parallel
with the other pre-feasibility studies), an integral part of Component VI.
Key stakeholders--the national and sub-national governments in the four countries, the
population in the Guarani Aquifer System region, local communities, NGOs, and academic
institutions interested in sustainable groundwater use in the region--have been, and continue to
be, involved in the project design and institutional arrangements for project implementation (see
Section 6). Provision is made within the project management process to continue to engage key
stakeholders in the SAP formulation process.
5.2 What are the main features of the EMP and are they adequate?
The Environmental Analysis of this project is incorporated within the PAD.
5.3 For Category A and B projects, timeline and status of EA:
Date of receipt of final draft:


5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA
report on the environmental impacts and proposed environment management plan? Describe mechanisms
of consultation that were used and which groups were consulted?

Key stakeholders include: the national and sub-national governments of the four countries, the
population in the Guarani Aquifer System region, farmers (from the perspective of the generation
of nonpoint source pollution from agrochemicals), industries (from the perspective of the
generation of point source pollution), water supply companies, local communities, environmental
NGOs, and academic institutions interested in groundwater management and research. These
stakeholders were, and will continue to be, involved in the project through the appropriate design
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of institutional arrangements for project implementation.
5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the
environment? Do the indicators reflect the objectives and results of the EMP?
Component I of the project is designed to strengthen and harmonize the monitoring and
information systems for the Guarani Aquifer System, including the creation of a shared data
network between the four countries. The project itself is not expected to have an impact on the
aquifer system, rather it is designed to provide the monitoring capacity (in technical, social and
human resources terms) with which to assess the possible impacts of other activities on the
environment. In addition, Component IV of the project is designed to provide for the monitoring
and evaluation of project progress, and disseminate the results of the project.
With regard to the management and mitigation projects to be completed under Component V, the
measures developed and implemented will have the objective of improving the management within
specific, vulnerable local and sub-regional areas within the aquifer system. These measures will
initiate a process of mitigating negative impacts from land use activities and industrial pollution. It
will be important to monitor their effectiveness in order to determine if the measures developed
and implemented are feasible and cost-effective, and worthy of dissemination more widely
throughout the region. Monitoring systems, and appropriate indicators, to be developed under
Components I, II, IV and V will contribute to this assessment activity.
6. Social:
6.1 Summarize key social issues relevant to the project objectives, and specify the project's social
development outcomes.
The primary aim of the project is to develop a sustainable management framework for the Guarani
Aquifer System, given its importance as a water source for current and future generations. The
social development outcome consists of preserving the natural resource base, rather than
encouraging its immediate exploitation and use. Complementary interventions to improve soil and
water utilization and management in its recharge areas, for example, will have relevance to the
social development objective of benefiting local populations through these interventions. For these
pilot projects, social assessments would be carried out as part of their preparation. Further,
Component III is designed to provide a practical mechanism to develop, disseminate, and deliver
appropriate informational programming to youth and communities to facilitate social
communication, public participation and sustainable involvement in this project.
6.2 Participatory Approach: How are key stakeholders participating in the project?
Key stakeholders in the project are the national governments and sub-national entities in the four
countries, universities, and local communities (especially in the pilot project areas). In terms of the
institutional framework for project implementation, it will be important to ensure that key
stakeholders have a voice. The conduct of frequent workshops is seen as an important means of
bringing the different stakeholders together. Governments, through their relevant ministries and
agencies, will continue to be represented on the Project Steering Committee and local executing
agencies, while nongovernmental organizations and individuals will be integrated into the project
through participation in the NPEUs and possible citizen advisory committees at national levels.
(see point 6.3).
6.3 How does the project involve consultations or collaboration with NGOs or other civil society
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organizations?
Academic institutions and NGOs are involved in the project through their respective national
coordinating units. Since they constitute a self-selected group of stakeholders, a number of
workshops are proposed to be organized to bring together NGOs that are active in the
water/environment nexus in the four countries. During project preparation, NGOs from the four
countries were invited to an NGO-organized water event in Caxambú, Brazil, in order to receive
information about the project and provide input to the project preparation process. The NGOs
participating in this meeting were requested also to identify other NGOs that might be interested
in the project. This was followed up by a specific consultancy to identify key civil society
stakeholders, as part of the project development activities. The stakeholder participation plan is
appended hereto as Annex 15.
For Project implementation, provision has been made to engage key national stakeholders
according to the structures of the respective NPEUs in order to receive specific input from the
private sector, and to encourage and facilitate participation by, inter alia, indigenous community
organizations. In addition, the inclusion of a special, small grants fund (Guarani Citizens' Fund) to
support small projects related to the Guarani Aquifer, to be implemented by NGOs, is included
within Component III. Important activities in this regard would be community-based public
education and awareness campaigns.
Key universities form an important nongovernmental constituency within the Guarani Aquifer
System region. The project concept initially was identified within the four countries by academic
institutions. Due to their extensive research experience, these organizations are anticipated to
continue providing vital knowledge about the aquifer. It is anticipated that the components related
to the expansion of the knowledge base, development of monitoring systems, and capacity
building activities will strongly involve the academic community. The participation of the
academic community in these portions of the project is critical to ensure the sustainability of the
project in the longer term, through their role in providing trained professionals to communities
and the regulatory agencies within the region. Therefore it is expected that key universities, as
well as other academic and research institutions that have carried out investigations on the
Guarani Aquifer System, will continue to be involved in the project during implementation (see
also Annex 2, Component 2 d) for information about the Capacity Building Fund currently under
development).
Indigenous communities were specifically considered during project preparation following their
expressed wish to be informed and incorporated into the project. An Indigenous Peoples Strategy
has been specifically designed into Component III to both inform indigenous groups in the
Guarani Aquifer System region and seek appropriate mechanisms to best incorporate their voice
and views into the project. Since the project does not include any investments, it would not have
any physical impacts on indigenous communities. However, as a stakeholder group with an
interest in the preservation of the Guarani Aquifer System, the project intends to ensure their
adequate representation.
6.4 What institutional arrangements have been provided to ensure the project achieves its social
development outcomes?
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The implementation arrangements for the project include regular meetings of the project Steering
Committee. These meetings are intended to provide the Governments, World Bank and other
co-financiers with information on the progress of the project, and to provide them with the
opportunity to modify project activities to best accomplish the overall project goals. As noted,
one of these goals is community empowerment through appropriate informational programming,
as embodied in Component III.
6.5 How will the project monitor performance in terms of social development outcomes?
Component IV is designed to provide information on project progress and success in achieving
project outcomes through the regular and ongoing monitoring and evaluation of the project. The
key performance indicators include an operational communications campaign designed to facilitate
public involvement in the management of the Guarani Aquifer System.
6.6 Monitoring and Evaluation arrangements
Given the decentralized nature of project activities, adequate monitoring will be essential for
effective project implementation. A comprehensive Operational Monitoring and Evaluation
System (OM&E) will be established to ensure effective supervision of activities, as well as
assessment of the outcomes and possible impact of project interventions. This includes the
development and tracking of GEF IW indicators (process, stress reduction, and environmental
status). Operation of the system will be coordinated by a special area at the central level within the
Guarani Secretariat that would undertake responsibility for overall project M&E. This area will
work in close coordination with the NPEUs and other implementing agencies for data recording
and project monitoring at the local level. A computerized management information system (MIS)
will be set in place to provide the necessary technical support for efficient data recording and
information processing and sharing, including counterpart contributions by the four governments.
The MIS will encompass not only the informational support for the operational aspects of project
implementation but would also provide links with the project GIS and aquifer monitoring systems,
so that the information generated by those systems will be readily available to all parties involved.
From an operational point of view, the structure of the MIS will cover three different areas:
programming and administration; physical and financial monitoring; and performance evaluation.
The OM&E system will enable tracking of inputs and outputs from project activities, as well as
their outcomes. This will be accomplished based on the use of a set of indicators, belonging to
two main groups: process and performance indicators. The quantitative and temporal elements of
process indicators will allow the Secretariat in coordination with the NPEUs to prepare annual
operation plans, and control adequate and timely completion of activities and delivery of project
products. Additionally, efficacy (efficiency and effectiveness) indicators could be developed, thus
completing the conceptual basis for the M&E framework. M&E activities will be based on the
first two groups of indicators, while the third group can be developed and used for management
purposes by the area within the General Secretariat responsible for the technical oversight of the
project.
Monitoring. Tracking of project implementation progress will be based on a group of
physical-financial (input-output) indicators. The MIS programming and administration module
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will support preparation of the Annual Operating Plans (POAs), budgets and work programs,
based on the Project Implementation Plan, to provide the necessary background information to
assess implementation progress. The MIS physical and financial monitoring module will provide
up to date information to allow monitoring of project physical and financial implementation.
Evaluation. Evaluation of overall project implementation performance and development impact
will be coordinated by the General Secretariat, and its inputs and outputs will be contained in the
MIS performance evaluation module. Evaluation will involve different areas of activity, including
assessment of physical and financial implementation performance based on the comparison of
target and actual values of a set of input and output indicators. This will be coupled with
development evaluation based on particular evaluation studies focused on a complementary set of
outcome, process and impact indicators, to determine the particular results and impacts attained
by the activities financed by the project.

7. Safeguard Policies:
7.1 Do any of the following safeguard policies apply to the project?
Policy
Applicability
Environmental Assessment (OP 4.01, BP 4.01, GP 4.01)
Yes
No
Natural Habitats (OP 4.04, BP 4.04, GP 4.04)
Yes
No
Forestry (OP 4.36, GP 4.36)
Yes
No
Pest Management (OP 4.09)
Yes
No
Cultural Property (OPN 11.03)
Yes
No
Indigenous Peoples (OD 4.20)
Yes
No
Involuntary Resettlement (OP/BP 4.12)
Yes
No
Safety of Dams (OP 4.37, BP 4.37)
Yes
No
Projects in International Waters (OP 7.50, BP 7.50, GP 7.50)
Yes
No
Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)*
Yes
No
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.
Safeguard policies which could potentially be applicable are: (i) environmental assessment; (ii)
indigenous peoples; (iii) projects in international waters; (iv) involuntary resettlement; and (v)
projects in disputed areas. Upon examination, the three first-named policies are applicable, as
outlined below:
(i) Environmental assessment: As outlined in Section 5, the project aims to prevent future
degradation of the Guarani Aquifer System through improved management, planning,
information, policies, and development of specific pollution control measures. The project does
not include infrastructure investments. However, the activities of Component VI might lead to
post-project energy development or other thermal water use investments, which could have as yet
unquantified environmental impacts requiring specific mitigation measures in the future.
Accordingly, this project is classified as Category B.
(ii) Indigenous peoples: Given that the project area encompasses 1.2 million square kilometers, a
number of indigenous groups living in the region are potentially affected by the project. The
project will not have any infrastructure or investment components that would affect these
indigenous groups. Some groups, however, have indicated their interest in being incorporated into
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project implementation as stakeholders.
An Indigenous Peoples Strategy (IPS), Sub-component 3d, has been designed based on
preparatory studies, consultations and discussions with key indigenous actors and institutions and
other related civil society entities. It is important to note that with respect to OD 4.20, the IPS of
the Guarani Aquifer Project was not formulated to mitigate actual or potential negative aspects of
other project activities, but it rather constitutes one of the main mechanisms of the project for the
effective and informed participation of indigenous peoples. The principal indigenous peoples
organizations will be specifically consulted during the project period, and specific
recommendations on how to best incorporate indigenous peoples as stakeholders will be included
in the SAP so as to ensure their adequate inclusion in the management of the Guarani Aquifer
System. Details are included in Annex 12.
(iii) International Waters: The guidelines referring to International Waters aim at identifying
instances in which activities within a transboundary waterbody in one country would or could
have effects on another country. In the case of this project the four riparian countries sharing the
body of water are represented on the Project Steering Committee and have collectively submitted
this project proposal. While the policy applies, separate notification of any one country is,
therefore, not necessary.
(iv) Involuntary resettlement: Due to the nature of the project (e.g., involving no infrastructure
investments), no involuntary resettlement will take place.
(v) Disputed areas: There are no disputed areas in the project region.
F. Sustainability and Risks
1. Sustainability:
Sustainability of the project will be facilitated by involving stakeholders in the project activities
from the beginning. As previously mentioned, the demand for this project originated in the
countries. By building human capacities and strengthening institutions, and further sensitizing
stakeholders, including those within civil society, it is expected that the collaborative framework
built up by the project will be sustainable after the end of the project. Certain costs of the project,
such as maintaining the information system, are of a recurrent nature and would require continued
financing by the governments and other stakeholders after project completion. These costs,
including the costs of human resources and institutions, will have to be borne by the countries
within the Guarani Aquifer System region.
The terms of reference for the Strategic Action Program specifically include the design of financial
mechanisms for long-term sustainability of project investments. This is especially pertinent given
that the proposed aim of the project is to sustainably manage the aquifer. It is expected that these
costs, in spite of the extent of the Guarani Aquifer System will be relatively modest. As mentioned
previously, the Guarani Aquifer System is very confined, implying high costs - and therefore
limited demand - for well drilling. Long-term monitoring (transaction) costs will thus be far lower
than would be the case for a surface water system of the same extension. Consequently, the
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expected financial burden on the countries is expected to be manageable.
As recently articulated at the previously referenced GEF first Biannual Conference on
International Waters, the preparation of the Strategic Action Program, required by the GEF,
constitutes the first phase of a project involving international (transboundary) waterbodies. It also
implies that, in order to provide the project (and the process of better managing transboundary
waters) with the necessary sustainability, a second phase needs to be contemplated during which
the Strategic Action Program would be implemented. As the Strategic Action Program is the
principal output of this project, the need for follow-up will be taken into account by including
planning for the second, implementation phase of the Strategic Action Program into the last year
of the current project. In the case of the Guarani Aquifer System, a second phase would imply
investments in the protection of recharge areas, in the prevention and mitigation of point-source
pollution, and in measures to reduce overdrafting of the Guarani Aquifer System in specific
localities, as well as potential development of activities related to the thermal characteristics of its
waters. Financing of the second phase might imply country resources, GEF, World Bank, private
sector and/or other multi- or bilateral funding.
2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1):
Risk
Risk Rating
Risk Mitigation Measure
From Outputs to Objective
Countries discontinue agreement to
M
Build a strong climate of collaboration through
assess, generate and share data about the
frequent and transparent communication during
aquifer; relevant data and information is
project preparation and implementation. Use
not available or shared.
Project Steering Committee to reinforce
agreement.
Institutional arrangements cannot be
M
Work with Project Steering Committee to find
agreed or do not function; compatible
solutions.
protocols, methodologies, processes and
organizations fail to be agreed.
Counterpart funding not available.
M
The major part of contributions is in-kind. Use
discussions in Steering Committee to resolve
issue.
Capacity building measures do not
M
Monitor quality of inputs from all four countries
produce quality contributions from all
and strengthen where needed.
countries.
Agreement on light and fair administrative
S
Start discussions early in the process and take
structure for aquifer management cannot
into account interests of the four countries,
be reached.
including the different stakeholder and decision
making groups.
Local stakeholders, communities (CSOs)
M
Disseminate information to civil society and
and NGOs are not appropriately involved
design institutional arrangements to include
in project implementation.
organizations.
Institutional roles not clarified or
S
Build a strong climate of collaboration through
supported, politically or financially,
frequent and transparent communication during
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especially at the sub-national government
project preparation and implementation. Work
levels.
with Project Steering Committee to improve
institutional functioning.
Countries fail to carry out their
M
Use Steering Committee mechanism and
obligations under regional agreements and
communication to resolve. General Secretariat
plans.
to emphasize efforts in enforcing obligations.
From Components to Outputs
Collaboration between partners in the four
M
Build a process of continued interaction as well
countries weakens.
as adequate monitoring of joint project results.
Investigations are not carried out in a
S
Monitor input continuously and strengthen
timely manner leading to partial slippage.
where needed.
Governments and the public do
M
Involve civil society from the beginning and
not remain interested in broad
inform them of options for participation to
participation in the project.
foster inclusion.
Local interest in pilot measures is low;
M
Secretariat to provide information to local
public does not participate in the project.
stakeholders and incorporate concerns into
design from beginning.
Aquifer management system is not agreed
M
Build a strong climate of collaboration between
or established
all stakeholders through frequent and
transparent communication. Work through
Steering Committee to reinforce decision making
processes.
Timely follow-up is not achieved.
M
Encourage local ownership of the project
through workshops and seminars; prepare the
implementation strategy during the project
period and secure funding for implementation
Collaboration between partners,
S
Disseminate information to civil society and
stakeholders, governmental units, and
design institutional arrangements to include
NGOs is not possible or fails
organizations; build a strong climate of
collaboration. General Secretariat to enhance
efforts in this regard.
Overall Risk Rating
M
Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)
3. Possible Controversial Aspects:
G. Main Conditions
1. Effectiveness Condition
l
Project Implementation Plan finalized and approved by the Bank.
l
Bilateral Agreements between OAS and countries effective.
l
Project Coordinator selected and approved by Bank.
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l
Basic infrastructure facilities for the operation of the General Secretariat of the Project have been
established.
2. Other [classify according to covenant types used in the Legal Agreements.]
n/a
H. Readiness for Implementation
1. a) The engineering design documents for the first year's activities are complete and ready for the start
of project implementation.
1. b) Not applicable.
2. The procurement documents for the first year's activities are complete and ready for the start of
project implementation.
3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory
quality.
4. The following items are lacking and are discussed under loan conditions (Section G):
A draft Project Implementation Plan, including a global procurement plan, exists and has been appraised.
Finalization of the Project Implementation Plan will be a condition for effectiveness.
I. Compliance with Bank Policies
1. This project complies with all applicable Bank policies.
2. The following exceptions to Bank policies are recommended for approval. The project complies with
all other applicable Bank policies.
Karin Erika Kemper
John Redwood
Vinod Thomas
Team Leader
Sector Manager/Director
Country Manager/Director
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Annex 1: Project Design Summary
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
\
Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Sector-related CAS Goal:
Sector Indicators:
Sector/ country reports:
(from Goal to Bank Mission)
Improved groundwater
Institutional and legal
Benchmark reviews of
Enduring political
resources management within frameworks for groundwater Country Assistance Strategies commitment to improve water
the overall framework of
resources management
resources management and
improved water resources and established and implemented
protection
natural resources management
in the respective countries:
Argentina, Brazil, Paraguay
and Uruguay
Quality of polluted
Economic Sector Work in
Enduring political
waterbodies improved or
water, groundwater, and
commitment to take
stabilized
natural resources management preventive measures for
environmental sustainability
Groundwater overdraft
Environmental analyses
mitigated or exploitation
stabilized
Water allocation efficiency,
equitability, productivity and
sustainability improved
GEF Operational Program:
Initiate actions toward resolving Transboundary environmental
Project reports and documents
Political commitment among the
transboundary environmental
analysis carried out, identifying
four countries continues high
concerns for the Guarani Aquifer top-priority multi-country
System within an improved joint environmental concerns
groundwater management
framework
Derive lessons learned from
Strategic Action Program
Monitoring and dissemination
Coordinated activities and joint
experiences in using various
elaborated, consisting of
workshops
efforts among the four countries
types of institutional
expected baseline and additional
are undertaken; Stakeholders are
arrangements at the national and actions needed to resolve
adequately involved in all
regional levels for collaboration
transboundary concerns
countries
in addressing priority
transboundary environmental
concerns
Lessons learned disseminated,
Supervision missions
monitoring systems developed
and implemented, and positive
improvements in process
indicators, stress reduction
General Secretariat/ Steering
indicators and environmental
Committee reports and minutes
status indicators documented
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Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Global Objective:
Outcome / Impact
Project reports:
(from Objective to Goal)
Indicators:
Sustainable use and management Pollution risks diminished or
Strategic Action Program
Continued political
of the Guarani Aquifer System in controlled
documentation
commitment by countries
Argentina, Brazil, Paraguay and
to agree on a common
Uruguay for current and future
Overdraft risks diminished or
Specific scientific, legal,
aquifer management
generations, supported by the
stabilized
technical, and institutional
framework
joint development and
documentation
implementation of an adequate,
Risk of future inter-country
Counterpart funding,
functioning aquifer management groundwater conflicts diminished
Operational manuals
sufficient financial
framework, based on sustainable
resources available
technical, scientific, institutional, Future mitigation and
Mid-term evaluation
legal, financial, political, and
stabilization costs reduced
studies
environmental grounds
Periodic monitoring and
evaluation system reports
Output from each
Output Indicators:
Project reports:
(from Outputs to Objective)
Component:
1. Expansion and
consolidation of current
scientific and technical
knowledge base of
the Guarani Aquifer System
1.a) Aquifer studies for
1. a) Well inventory
Report on wells, their
Continued agreement by
consolidation and expansion of
carried out in all four
distribution and impacts
countries to assess, create,
the scientific knowledge base
countries
enhance, and share data
carried out
Publication of relevant
and information
1. a) At least 70% of all
maps and accompanying
wells assessed in terms of
descriptive written and
Institutional arrangements
use and water availability,
digital materials
between country and
quantity, and quality
external
Published sampling,
partners functioning
1. a) Aquifer System's
analytical, and quality
western and southern
control/quality assurance
limits defined
manual and reports
Compatible protocols,
processes, methodologies
1. a) A preliminary
Reports and proceedings
and organizations are being
conceptual aquifer model
from seminars and
used
is available to help
workshops
improve understanding of
Relevant data, information
its principal features
Supervision / monitoring
and documentation are
Reports
readily available and
1.a) Geological and
shared
hydrogeochemical maps of
Evaluation mission reports
priority areas produced
(mid-term evaluation)
Studies are adequately
coordinated in terms of
1. a) A general, regional
Periodic Technical
timing and mutual
hydrogeologic map, as well
Assistance visits and
contributions
as thematic maps on
Reports
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---

potentiometry with
network flows, surveys of
Progress reports from the
Guarani Aquifer System
recharge and discharge
different NPEUs and the
Project coordinates well
areas, isotransmissivity
General Secretariat
with contributing agencies
and isoproductivity, are
staff, such as IAEA and
available
BGR
1. a) Water quality is
Reports from participating
assessed and pollution
agencies
patterns distinguished in
terms of the origin,
impacts and ways to
Guarani Aquifer Project
remediate the pollutants
Website
1. a) Specific isotope
studies are carried out to
Monitoring and Evaluation
support a better
reports
understanding on Guarani
Aquifer System's origin
and age, evolution,
hydrodynamic behavior,
boundary conditions,
recharge-discharge
relationships, and
geothermal character
1. b) Technical and
1. b) Different water uses
socio-economic assessment of
are assessed, including
current and future use scenarios
forecasts relying on
of Guarani Aquifer System
alternative socio-economic
carried out
scenarios simulated
through digital aquifer
modeling, to support direct
decision making models
1. b) Descriptive maps of
the aquifer showing
present development and
abstractions, including
water uses, geographic
distribution, and
socio-economic and
environmental data, as
well as typical well
productivity, are available
1. b) Regional technical
rules are legal instruments
developed to control well
design, construction and
operation
1. b) Regional aquifer
vulnerability and
associated risks assessed,
with special emphasis on
transboundary areas.
2. Joint development and
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---

implementation of the Guarani
Aquifer System Management
Framework
2.a) Monitoring network for the
2. a) Permanent monitoring
aquifer system implemented,
network comprised of at
Periodic data reports and
Continued agreement by the four
functioning and regularly
least 184 wells (5% of
published information on the
countries to jointly elaborate a
assessed, to support scientific,
total number of known
dimensions of the Guarani
Guaraní Aquifer Management
technical and managerial
wells) in place; adequate
Aquifer System; supporting
Framework and start parts of its
activities regarding the protection
equipment, sampling
information published through
implementation at a regional
and sustainable development of
procedures and
Guarani Aquifer System (SISAG level
the Guarani Aquifer System
frequencies, analytical
­ Sistema de Información del
methods, and sample
Sistema Acuífero Guaraní)
Consensus among country
management protocols are
governments and between
available
these and civil society
stakeholders
2. a) Monitoring network
and equipment adequately
maintained, and
Technical agreement can be
sustainably financed
reached on light and fair
administrative structure for
2 b) Development and Integration
the Guaraní Aquifer System
of an Information System (SISAG
2.b) Information and
Annual progress reports on
- Sistema de Información del
Documentation System
progress toward formulation of
CSOs are constructively
Sistema Acuífero Guaraní)
network implemented
the TDA and SAP, and the
participating in policy
simultaneously implemented,
primarily via Internet, set Guarani Aquifer System
discussion and formulation
shared, and regularly functioning
up, and adequately
management framework
in the four countries
operated and maintained
Transboundary groundwater
with sustainable financing Protocols for the operation and
related institutional roles and
identified and available
expansion of the GIS and
responsibilities, with strong
web-based information systems
legal, political and financial
2. b) One SISAG Focal
implemented and sustained
support, are clarified at national,
Point in each country
state / provincial / departmental
equipped, set-up and
Supervision/monitoring
levels, as applicable
functioning in each country Reports
2. c) Strategic Action Program
prepared, comprising at least
2. c) Documentation
Strategic Action Program
plans for: (i) medium and
available containing the
documentation
long-term actions with regard
Strategic Action Program
to the management of the
for the four countries, legal
Guarani Aquifer System at the
and institutional
Evaluation mission reports
local, regional, national and
frameworks, and
(mid-term)
supranational levels, (ii)
accompanying material
investments for pollution and
relevant to decision
overdrafting prevention and
making such as regional
Periodic Technical Assistance
mitigation measures, especially
mapping, diagrams and
visits and reports
regarding transboundary
tables related to the state
problems, by public and/or
of the aquifer system, and
private sectors, (iii) investments
including identification of Progress reports from the
in geothermal energy use and
financing agencies and
Project Implementation Units
other potential groundwater uses,
donors, and future
according to institutional
(iv) and conflict resolution
information needs beyond arrangements
mechanisms
first program phase
2 c) At least 8 workshops Guarani Aquifer Project
and meetings held between Website
stakeholders of multiple
levels, nationally and
internationally, to arrive at Legal proposal document
- 40 -

---

sustainable technical,
scientific, legal,
institutional, political and An agreement or an intention
diplomatic agreements
protocol by the four countries as
a paramount step toward a
2. c) Technical consensus coordinated, sustainable
proposal for a Legal
management system for the
Framework to manage the aquifer
Guarani Aquifer System
elaborated
Progress reports and minutes of
2 c) Multi-country
the Steering Committee meetings
agreement on an
and other diplomatic initiatives
institutional, financial, and
technical framework to
jointly manage the Guarani Monitoring and Evaluation
Aquifer System exists and Reports
2. d) Institutional Capacity
is under implementation
strengthened in relevant agencies
and institutions
2. d) Specific support
(state/national/provincial/muni-
provided to water
Supervision missions
cipal levels)
managers and strengthened
institutional frameworks
by means of Technical
Assistance on demand,
technical exchanges, and
40 twinning (staff
exchange) arrangements
Workshop and seminar reports
and minutes
2. d) At least 8 events ­
seminars, meetings,
workshops ­ held to
improve water
management, with benefit
to at least 25 of the
countries' organizations
active in the groundwater
2. e) Transboundary Diagnostic
field
Transboundary Diagnostic
Analysis carried out
Analysis documents
2. e) TDA documentation
produced and disseminated
3. Public and stakeholder
participation, Education and
Social Communication
3. a) Regional Communications
3. a) Regional Public
Plan documentation
Standardized criteria for
and Public Participation Plan
Communication and
Monitoring and Evaluation
prepared
Participation Plan
Manual on Regional and
indicators are agreed with the
formulated and
Local Social
four countries and being
documentation available
Communications published implemented
3. a) Information and
document dissemination is
Supervision / monitoring
Capacity-building measures
continuously provided by
reports
and Technical Assistance
the Guarani Aquifer
Geographic Information
System, especially via its
Website
Evaluation mission reports Commitment remains high to
3. b) Guarani Aquifer System
(mid-term and final)
integrate civil society into the
- 41 -

---

Citizens' Fund established
3. b) Guarani Citizens'
process of designing a
Fund established and US$
sustainable management
240,000 in grants awarded
Periodic Technical
framework for the Guaraní
to CSOs
Assistance visits and
Aquifer System
Reports
3. b) Coummunity-level
activities carried out by
Each country carries out its
CSOs to enhance public
campaigns according to agreed
participation,
regional Plans
communication and
education
Progress and Goal
3. c) Instruments created and
Achievement reports from
disseminated to increase
3. c) Pertinent public
the Project Implementation
awareness, interest and
communication materials,
Units, according to
commitment among stakeholders
adapted to each country
institutional arrangements CSOs are interested in
and with special emphasis
for the project
participating
on pilot areas produced
and disseminated
Workshop reports
3. c) Information
dissemination campaigns
Newspaper articles and
in each country carried out
TV / Radio coverage
at local level
3. d) Indigenous People's Strategy
Environmental/groundwate
(IPS) implemented
3. d) Scoping study carried
r education materials
out, with emphasis on
published
indigenous peoples' rights
to water and natural
resources
Specific project
documents, papers and
3. d) Workshops, training
reports made available by
and direct consultations
specialized and
have taken place in
nonspecialized regional
Argentina, Brazil and
and international
Paraguay
magazines, and other
brochures and
3. d) Relevant project
informational materials
documentation has been
published and distributed
translated into indigenous
languages and
disseminated
Guarani Aquifer Website
Reports on public
participation considered in
the preparation of the legal
framework
4. Project monitoring and
- 42 -

---

evaluation, and dissemination
of project results
4. a) Monitoring, evaluation and
4. a) Project monitoring
Monitoring and Evaluation Sufficient capacity is created
feedback system developed and
and evaluation system is
reports
to enable high-quality
implemented
implemented and
monitoring, processing,
functioning
Workshop reports
evaluation and feedback of
project results
4. a) At least bi-annual
Supervision / monitoring
workshops (by country)
reports
held for technical
Healthy project performance
discussions, consultations
helps keep counterpart funding
and project progress
Evaluation mission reports available
information and feedback
(mid-term)
4. a) Progress reports,
Stakeholders are flexible to
together with project result
Periodic Technical
adjust course if necessary,
and performance reports,
Assistance visits and
derived from periodic project
generated and
reports
assessments and feedback
disseminated at least once
recommendations
per year
4. b) Dissemination of project
results
4. b) Project/country
Seminar and workshop
stakeholders participate
papers and reports
in at least four relevant
international events,
including GEF-IW
meetings, to share and
validate project results
Guarani Aquifer System
4. b) Project webpage well
Website
maintained
5. Development of Management
and Mitigation Measures
within identified "Hot Spots"
5. a) Hot Spot Concordia
5. a) and b)
Supervision / monitoring
Local buy-in and active
(Argentina) - Salto (Uruguay)
Socio-economic
reports
Participation, involvement and
participatory stakeholder
commitment
and
assessments carried out
Pilot project design and
Studies and analyses provide
5. b) Hot Spot Rivera (Uruguay) -
5. a) and b) Local
operation manual
sufficient basis/background for
Santana (Brazil)
awareness raised through
published
the preparation of the pilots
public participation by
means of workshops,
Information is generated and
consultations and
Field visits to pilot areas
improved, methodologies tested
communications compaign
and results / conclusions at
(in connection with
sub-regional level help improve
component 3)
Evaluation mission reports joint development and
(mid-term and final)
implementation of water
5. a) and b) Scientific
management framework
studies executed and
geological,
Periodic Technical
Aquifer water management and
hydrogeological, and
Assistance visits and
protection experience and lessons
hydrogeochemical
reports
learned are available for sharing
information available and
and replication
periodically updated
Progress reports from the

General Secretariat
- 43 -

---

5. a) and b) Data bases on
Different partner agencies
wells, water uses, and
Guarani Aquifer Website
work together
aquifer parameters are
available via SISAG and
Collaboration across agencies
local information networks
Published sampling,
exists
analytical, and quality
5. a) and b) Specific
control/quality assurance
subregional digital
manual and reports
hydrogeological models are
available to support
decision making
Reports and proceedings of
seminars and workshops
5. a) and b) Local aquifer
management plan
Final assessment reports
elaborated, including
on the costs, feasibility,
institutional arrangements,
lessons learned, and
well permits system, well
recommended future
and recharge protection
actions
areas, subregional
monitoring networks, and
Local aquifer management
minimum distance criteria
plans
for well construction and
operation
5. a) and b) Specific
transboundary
management framework
Monitoring and Evaluation
developed to allow testing
Reports
and assessment of specific
strategies, tools and
actions to solve problems
Scientific and technical
and provide input to
reports
regional actions
Workshop and consultation
5. a) and b) Institutional,
reports
legal, managerial, social,
and environmental
Public dissemination
5. c) Hot Spot Encarnación -
experiences documented to
material
Ciudad del Este - Caaguazú
allow replicability
(Paraguay)
assessments
Scientific and technical
5. c) Geohydrological
reports
knowledge of area
increased, esp. regarding
recharge and discharge
characteristics and aquifer
vulnerability
Workshop and consultation
5. c) Socio-economic
reports
assessment, including
water usage and well
Public dissemination
inventory, carried out, with
material
emphasis on indigenous
populations
Progress and evaluation
reports
5. c) Public information
campaign carried out
Local aquifer management
plan
5. d) Hot Spot Ribeirão Preto
5. c) Management needs
(Brazil)
- 44 -

---

identified and proposal,
including priority actions
and localities, elaborated
5. d) Participatory social
assessment, consultations
and local information
dissemination carried out
5. d) Technical assistance
for local aquifer
management planning
provided
5. d) Local aquifer
management plan
elaborated
6. Assessment of Geothermal
Energy Potential
6 a) Aquifer's geothermal
6. a) Geothermal data and
Supervision / monitoring
Task force successfully
potential assessed in its
pertinent information
reports
established and relevant
geohydrological,
updated and new
stakeholders included
socio-economic, and
thematic maps produced
Evaluation mission reports
environmental dimensions
(in connection with
(mid-term and final)
Pertinent geothermal data
Component 1)
available in a timely manner
Periodic Technical
6.b) Recommendations for
6. b) Four-country task
Assistance visits and
Development possibilities
activities to be executed in future
force created to undertake
reports
derived from newly acquired
endeavours, proposals for
scientific assessment
information, methodologies and
possible geothermal development
jointly with international
Progress reports from the
experiences, assessed in
areas and future geothermal
experts and agencies
Project Implementation
hydrogeological, socio-economic
project framework defined
Unit
and environmental terms
6. b) Analyses of
socio-economic, financial,
Workshop reports
and environmental
feasibility of possible
Guarani Aquifer Website
future geothermal activities
and areas carried out by
Periodic publication of
Task Force
relevant maps and
accompanying descriptive
6.2 b) Conceptual
written and digital
identification of possible
materials
pilot projects in the four
countries is available
Compilation Report on all
pertinent existing
information and strategy
definition with a local /
subregional approach
7. Project Coordination and Project well managed and
Project Progress Reports
Counterpart funding, including
Management
objectives reached
for country coordinators, is
Supervision Missions
available
Steering Committee meetings
Implementation arrangement
adequately designed to deal with
inherent project complexity due
to the project's multinational
character
- 45 -

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- 46 -

---

Key Performance
Data Collection Strategy
Hierarchy of Objectives
Indicators
Critical Assumptions
Project Components /
Inputs: (budget for each
Project reports:
(from Components to
Sub-components:
component)
Outputs)
1. Expansion and consolidation
US $ 9.91 million
Collaboration between
of current scientific and technical
partners in the four countries
knowledge base of the Guarani
remains high.
Aquifer System
2. Joint development and
US $ 7.01 million
Research and development is
implementation of a Management
carried out in a timely manner,
Framework for the Guarani
with high quality and compatible
Aquifer System
methodologies.
Political commitment to the
project remains high, incl. active
participation in project's
institutional arrangements.
3. Public and stakeholder
US $ 1.31 million
Process to develop and
participation, education and
implement the joint
social communication
management framework is
well designed and responds
to stakeholders' needs
4. Project monitoring and
US $ 0.48 million
Indicators refined and M&E
evaluation and dissemination of
System defined in a timely
project results
manner
Governments and the public
5. Development of Management US $ 3.73 million
remain interested in broad
and Mitigation Measures within
participation in the Guarani
identified "Hot Spots"
Aquifer System management and
implementation
Good baseline and timely
follow-up
6. Assessment of Geothermal
US $ 0.28 million
Countries provide their
Energy Potential
counterpart, including active
participation in in-country and
regional activities
7. Project Coordination and
US $ 4.04 million
Partners from different sectors
Management
and origins, including water and
energy, collaborate
Total project Cost
US $ 26.76 million
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Annex 2: Detailed Project Description
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
1. Objective
The long-term objective of the process started through the proposed Project is the sustainable
management and use of the Guarani Aquifer System. The Guarani Aquifer System is situated in
the eastern and south central portions of South America, and underlies parts of Argentina, Brazil,
Paraguay and Uruguay. This project is a first step toward achieving the long-term objective. The
purpose of the proposed project is to support the four countries in jointly elaborating and
implementing a common institutional, legal and technical framework for managing and preserving
the Guarani Aquifer System for current and future generations. To achieve this, seven project
components are envisaged: (i) expansion and consolidation of the current scientific and technical
knowledge base regarding the Guarani Aquifer System; (ii) joint development and implementation
of a Guarani Aquifer System Management Framework, based upon an agreed Strategic Program
of Action; (iii) enhancement of public and stakeholder participation, social communication and
environmental education; (iv) evaluation and monitoring of the project and dissemination of
project results; (v) development of regionally-appropriate groundwater management and
mitigation measures in identified "Hot Spots"; (vi) consideration of the potential to utilize the
Guarani Aquifer System's "clean" geothermal energy; and, (vii) project coordination and
management.
2. Approach
The joint development and implementation of the Guarani Aquifer Management Framework is the
core of the Project. The other project components are designed to provide the scientific, technical,
social, legal, institutional, financial and economic basis for the Framework, as illustrated in Figure
1. The specific objectives, estimated costs, and GEF financing for the project components are
described below.

Expansion of
Geothermal
Joint Guarani Aquifer Management
Scientific and
Energy Use
Framework
Technical
Assessment
(including legal and institutional arrangements,
Knowledge
Base
monitoring system, GIS, and Strategic
Action Program)
Stakeholder
participation,
Pilot projects in
education, and
Monitoring,
identified "Hot
communication
evaluation and
Spots " to test
dissemination
management
measures
The project has seven interrelated components that quantify the state of the aquifer in terms of its
morphology and behavior, its use and conservation, it relationships to communities and
institutions, and its planning and organizational needs for improving coordinated management of
- 48 -

---

its waters. This knowledge will provide a scientifically-sound and well-documented base for
establishing a framework for the coordinated and consensual management of the Guarani Aquifer
System, capable of providing for its environmental protection, and integrated and sustainable
development. The project will identify and test key management elements (including policies,
mechanisms, and instruments) that will facilitate the sustainable and coordinated management of
the Guarani Aquifer System. The resulting management framework will provide the means to
mitigate and/or resolve the most pressing transboundary environmental problems that threaten the
aquifer. In addition, this framework will provide a means to address local conflicts arising from
the use of the waters of the aquifer system (especially those related to water pollution and over
exploitation to provide a long-term strategy for risk mitigation), and assess its potential to provide
"clean" geothermal energy to communities within the region.
By Component:
Project Component 1 - US$9.91 million
Expansion and Consolidation of the Current Scientific and Technical Knowledge Base on
the Guarani Aquifer System
The objective of this Component is to synthesize, analyze, and expand the existing knowledge
base related to the Guarani Aquifer System in the four countries. A sound scientific and technical
understanding of the aquifer is essential to the development of an articulated, consensual and
effective management framework that facilitates its sustainable development within its regional
setting, while providing a necessary measure of environmental protection for the shared resource.
The Component will also seek to expand and improve the understanding of the potential and
threats facing this body of water. In so doing, this Component will identify institutional actors,
water users, and social groups whose actions impinge upon the Guarani Aquifer System. There
are two sub-components:
1.a) Aquifer studies for consolidation and expansion of the scientific knowledge base, in
order to quantify and disseminate scientific knowledge on the geometry, structure and
hydrodynamic behavior of the aquifer, and to synthesize and expand the existing knowledge
base in order to meet specific objectives (including determination of the southern and western
boundaries of the aquifer within Paraguay, Argentina and Uruguay) ­ A thorough inventory of
public and private wells will be undertaken. The determination of the characteristics and
magnitude of the Guarani Aquifer System, the extent of existing levels of pollution of the
aquifer within the countries, and identification of the areas of recharge and discharge,
including the hydrogeology and dynamics of the Guarani Aquifer System, are important, basic
characteristics of the system that must be known prior to any attempt to manage it.
1.b) Technical and socio-economic assessment of current and future use scenarios of the
Guarani Aquifer System ­ Based upon the knowledge base assembled during the previous
sub-component, the technical knowledge of the Guarani Aquifer System will be used to
develop techniques to (i) conduct an appraisal of the present uses and anticipated future uses
of the aquifer under a variety of foreseeable scenarios, (ii) assess the interactions between
these various uses and the cumulative impact of the Guarani Aquifer System, and (iii) appraise
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the available technologies for surveying, extracting, and using the waters of the Guarani
Aquifer System.
The results and products of the two sub-components will establish the parameters within which
the Guarani Aquifer System can be sustainably exploited, without damage to the underlying
structure and function of the aquifer system, within an objective technical and scientific
framework. These results, in combination with the practical outcomes of the pilot projects in
identified Hot Spots to be completed under Component V, are of fundamental importance for
supporting decision making with respect to the management and protection of the Guarani
Aquifer System.
The International Atomic Energy Agency (IAEA) will support a portion of this Component
insofar as it relates to the application of isotope methodologies for determining, among other
phenomena, the conditions and limits of groundwater flow within the Guarani Aquifer System.
The IAEA will provide funds and in-kind support to the use of isotopes to delineate the extent
and character of the aquifer, and, through these activities, contribute to building capacity and
strengthening institutions in the countries in this region. The IAEA will also ensure the quality of
the analyses and the consistency and reliability of laboratory results based upon the isotopes.
IAEA acitivities are additional to project activities and are expected to further enhance the
knowledge. The component would still reach its objectives, even if IAEA funding was not
available.
In addition, the Government of Paraguay is currently in discussion with the Bundesanstalt fuer
Geowissenschaften und Rohstoffe ("German Geological Survey" ­ BGR) with regard to the
provision of technical assistance in support of this Component. Incremental financing has been
made available by the BGR, which will provide in-kind support contributing to capacity building
and institutional strengthening in Paraguay, and support the acquisition and management of
geohydrological data within that portion of the aquifer. This will improve the capacity building
effect in Paraguay and therewith the quality of the project. If the funding should not materialize,
the overall project results would not be detrimentally affected, however.
Execution of this component will take place through the General Secretariat in close coordination
with the four country Executing Agencies through their respective NPEUs.
GEF: US $ 4.57 million; co-funding: US $ 5.34 million; total: US $ 9.91 million. Co-funding is
expected to include contributions from the IAEA in the amount of US $ 0.30 million, from the
BGR in the amount of US $ 0.14 million, and from the World Bank Netherlands Water
Partnership Program (BNWPP) in the amount of US $ 0.03 million.
Project Component 2 - US$7.01 million
Joint development and implementation of the Guarani Aquifer System Management
Framework
As outlined in the introduction, this component constitutes the core of the project, with the other
components feeding into it. The objective of this component is to develop a framework for the
coordinated management (technical, institutional, financial and legal) of the Guarani Aquifer
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System, taking into account the principles of sustainable integrated development, the problems
and potential of the Guarani Aquifer System, and environmental protection concerns. This
framework will be established within a Strategic Action Program (SAP) to be implemented in the
Guarani Aquifer System region. The SAP will articulate, in a logical and comprehensive manner,
in both space and time, the principal lines of action necessary for achieving the project's long term
objective. There are five sub-components:
2. a) Design and implementation of an aquifer monitoring network that provides results
early in the execution phase to support efforts to implement and strengthen the knowledge
base on the Guarani Aquifer System ­ This network includes the installation and running of
equipment on a 5% sample of all wells. Its implementation is an essential tool for providing
basic data and information necessary for the coordinated management and administration of
the Guarani Aquifer System, and monitoring of its behavior in space and time.
2. b) Development and integration of an Information System (SISAG - Sistema de
Información del Sistema Acuífero Guaraní) for the Guarani Aquifer System that facilitates
the management, standardization, dissemination, and utilization of data, information, and
documents, in order to enhance coordinated management, based upon a sound knowledge of
the Guarani Aquifer System ­ This system, including a GIS, will provide the technical basis
for decision making relating to the aquifer. It will provide the basic knowledge necessary for
resolving present and emerging problems, and ensuring the sustainable use of the aquifer's
potential.
2. c) Formulation of a Strategic Action Program (SAP) ­ The SAP will provide a strategic
framework for the coordinated management of the Guarani Aquifer System. Such a
framework will facilitate and support solutions to the current and emerging problems of
pollution and over-exploitation of the Guarani Aquifer System, as well as resolution of other
transboundary environmental problems that may threaten its sustainable development.
A core piece of the SAP process will be to develop an institutional framework for the
management of the Guarani Aquifer System. In addition, a sequence of activities, such as
workshops and seminars, are planned to arrive at a technically agreed consensus proposal for
a legal Guarani Aquifer System management framework. The SAP process also contributes to
identifying and managing the potential uses of the Guarani Aquifer System through a process
that encourages the participation of different stakeholders in the conduct of a prioritized, core
group of activities for the coordinated management of the Guarani Aquifer System in a
manner consistent with the purposes of the GEF and the interests of the four countries.
The SAP will enrich, diversify and disseminate knowledge, information, visions, and
documentation on the Guarani Aquifer System, so as to promote sustainable, integrated
management and environmental protection. (See Annex 14)
2. d) Institutional strengthening ­ Development of groundwater management expertise and
strengthening the institutional base within the Guarani Aquifer System region is the basic
building block upon which the transboundary management of the Guarani Aquifer System will
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be supported. Appropriate and relevant means of strengthening agencies, in order to support
the management framework, to be further elaborated during the subsequent implementation
phases of the project, will promote a solid basis for the joint management of subterranean
waters of the Guarani Aquifer System. These means include twinning (staff exchange)
arrangements between agencies involved in Guarani Aquifer System management in the
different countries to benefit at least 40 (ground)water managers, development and delivery of
a suite of groundwater management courses, short-term Technical Assistance to agencies and
institutions involved in groundwater management, and study tours of managers and decision
makers to other relevant transboundary (ground-)water institutions. These activities will be
targeted at national as well as subnational entities, including state/provincial institutions and -
if applicable - to water supply utilities.
In addition, a fund for research and capacity building is currently being created, to be financed
through the Bank Netherlands Partnership Program, to be accessed by universities in the
Guarani Aquifer Region. Universities will be able to request funding in order to finance (i)
development and carrying out of courses relating to groundwater research and/or
management, with specific emphasis on the environmental aspects of the Guarani Aquifer
System and (ii) research related to the Guarani Aquifer System with the express goal of
involvement of Master's or Ph.D. students.
Research topics could include, for instance, broadening of the knowledge basis linked to point
and non-point source pollution, including vulnerability assessments and protective zoning;
investigation into vulnerability relating to localized aquifer overdraft; environmental aspects of
groundwater administration and allocation (e.g. monitoring indicators and implementation of
environmental monitoring schemes; impact analysis of water use concessions); environmental
impacts of geothermal aquifer exploitation, pollution control management at country and/or
regional level, environmental aspects of international law of groundwater resources related to
the Guarani Aquifer System, and financial impacts on user groups through pollution and/or
overexploitation.
The objective is to provide universities in the region of the Guarani Aquifer System, which are
key players in the long-term management of the Guarani Aquifer, with resources for joint
research and capacity building and to ensure that (i) groundwater in its environmental and
social dimension enters the academic agenda in the region, also to the benefit of the problems
encountered in shallower aquifers in the four countries; (ii) future human resources are trained
in the environmental and social aspects of Guarani Aquifer Management as a critical input
once the Guarani Aquifer Management Framework is agreed upon between the countries and
to be implemented, (iii) the academic community continues to be involved in the umbrella
Guarani Aquifer Project; and (iv) links are strengthened and created between the universities
in the region. The Fund will amount to a total of US $370,000 to be disbursed over a time
period of three years. Regulations for the University Fund will be included in the Project
Implementation Plan.
2. e) Transboundary Diagnostic Analysis - The mix of approaches adopted under this
Component will not only contribute to the formulation of the SAP, but will also result in a
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comprehensive Transboundary Diagnostic Analysis (TDA) that represents the first step
toward defining the underlying root causes to be addressed during a program of active
management of the aquifer. Given the technical capacities of the countries, it is important that
the TDA be completed in such a way as to provide for the ongoing monitoring of the
resource. This is particularly the case vis-à-vis the implementation of a monitoring system
linked to an Information System, and the preparation and implementation of a shared GIS,
which has been designed to support decision making for the management and protection of
the Guarani Aquifer System. The Information System then becomes an essential element in the
dissemination of knowledge on the aquifer and its different interrelationships. The nature of
subterranean waters makes it possible to establish a monitoring system early on in the project.
In addition, the volume and dispersion of the existing information on the aquifer requires a
special informatics effort to organize and disseminate the information by means of a practical,
operational information system during the early stages of project execution. By providing a
working data and monitoring system early in the project, this Component can contribute to
maintaining the interest of relevant stakeholder groups.
Execution of this component will take place through the General Secretariat in close coordination
with the four country Executing Agencies through their respective NPEUs. In the case of the
development of the SISAG, at least four national focal point agencies (i.e. at least one in each
country) will be identified, which will be responsible for the development and maintenance of
information in the SISAG.
GEF: US $ 3.49 million; co-funding: US $ 3.52 million; total: US $ 7.01 million. Co-funding is
expected to include contributions from the BGR in the amount of US $ 0.05 million, and from the
World Bank Netherlands Water Partnership Program (BNWPP) in the amount of US $ 0.07
million.
Project Component 3 - US$ 1.31 million
Public and stakeholder participation, education and communication
The objective of this Component is to promote, support, and enrich the participation and
involvement of the public, and to foster environmental and water education, social
communication, and the dissemination of knowledge on the project and the Guarani Aquifer
System, its management and conservation, within stakeholder communities. It includes strategies,
programs, and actions, as well as support for the pilot projects in the identified Hot Spots to be
conducted under Component V. This Component will involve: (i) the design and implementation
of a Regional Communications Plan that will contribute to sensitizing and educating people in the
Guarani Aquifer System region, and (ii) ensuring that relevant stakeholders are involved in
preparing and executing the SAP. The stakeholders identified to date, through the project
development phase activities, include water users, resource management institutions, water
service providers in both rural and urban areas, NGOs, academics, the private sector, and minority
groups. Four sub-components are proposed:
3. a) Design of a Regional Communications and Public Participation Plan ­ Periodic
reviews of the status of information dissemination, and of the participation of the population
in the region, including public servants, water users, academics, professional groups, business
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persons, environmental NGOs, indigenous groups and leaders, in developing and
implementing the project, and in formulating the SAP will be undertaken. These reviews will
contribute to an evaluation of results achieved at the end of the project in the areas of
communications, education and public participation. A key element in achieving a high degree
of public participation in the project will be the preparation of a Social Communications
Manual for the project. The manual will outline ways and means of promoting events that will
enhance the "image" of the project among stakeholder groups. It is anticipated that activities
will include: the periodic preparation of an electronic "newsletter" to be distributed over the
Internet, targeting specific groups of stakeholders; circulation of an informational bulletin on
the project, likewise over the Internet, as well as through other media; conduct of
institutional-based information campaigns; design and implementation of a distance learning
curriculum for youth, to be disseminated through radio/television and the press; and creation
of a project image bank of digital photographs relating to aspects of aquifer protection and
management.
3. b) Guarani Aquifer System Citizens' Fund. Development of strategies and concrete
actions for spurring and strengthening environmental education as well as education on the
Guarani Aquifer System waters ­ Community-level dissemination of information and
knowledge on the Guarani Aquifer System, its management and conservation, is an essential
element for ensuring the sustainability of this project. Participation of community-based NGOs
will be facilitated through a Guarani Aquifer System Citizens' Fund, the purpose of which is
to support, in part, activities that encourage public participation, communication, and
community education. This fund will be subject to implementation regulations that will govern
the submission and funding of proposals from, inter alia, NGOs and community organizations
operating in the Guarani Aquifer System region. It is anticipated that grants, up to US$10,000
in value, will be awarded on a competitive basis, with a matching requirement of 20 percent
applicant share and 80 percent Citizens' Fund grant. Grants could be used for implementation
of groundwater/ environmental education and awareness raising activities related to the
Guarani Aquifer System. The applicant share can be in-kind, with human resources valued at a
standard rate to be determined as part of the grant regulations. Regulations for the Citizens'
Fund will be included in the Project Implementation Plan.
3. c) Creation and dissemination of instruments to increase awareness, interest, and
commitment among stakeholders ­ Measures to involve children and youth in the Guarani
Aquifer System project will not only enhance the project's "corporate image", but also result
in a widespread and long term awareness and commitment to protecting and preserving the
aquifer. Lessons learned from similar efforts within the Latin American region suggest that
young people will carry the message of sustainable and responsible use of the aquifer from
their classrooms to their homes, and that their parents will be engaged in the process of
protection and sustainable utilization as a result. Thus, an important element of this
sub-component will be development and dissemination of a school booklet and atlas of the
aquifer. In addition, other activities envisioned include, inter alia, the preparation and
dissemination of an environmental manual and a manual on the Guarani Aquifer System for
teachers and community leaders; sponsorship of contests and sports awards; conduct of radio
and television campaigns; creation of reference centers and a mobile Guarani Aquifer System
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classroom; convening of workshops and seminars on the Guarani Aquifer System; and the
production of supporting materials such as brochures, posters, and videos. Given the extent
of the Guarani Aquifer System, these activities will emanate from the Regional
Communications and Public Participation Plan (3 a) and initially will be prepared as pilot
demonstration projects in the identified "Hot Spots" (see Component 5), targeted to specific
locations, which will facilitate testing of the materials and programs prior to later expansion to
the regional level during subsequent phases of the project.
3 d) Indigenous Peoples Strategy - An Indigenous Peoples Strategy (IPS) has been designed
based on preparatory studies, consultations and discussions with key indigenous actors and
institutions and other related civil society entities. Because there will be no physical project
investments, indigenous peoples will not be directly affected by project activities. On the other
hand, the long-term goal of the project to create a management framework for the Guarani
Aquifer System may eventually have effects on their rights and obligations, e.g. with regard to
registration of new wells. As previously noted, with respect to OD 4.20, the IPS of the
Guarani Aquifer Project was not formulated to mitigate actual or potential negative aspects of
other project activities, but it rather constitutes one of the main mechanisms of the project for
the effective and informed participation of indigenous peoples. It includes further in-depth
studies, participatory assessments, and consultations in the project area in general, as well as
in the Paraguayan Pilot area in particular. Details such as phasing, action steps and budget are
included in Annex 12.
Specifically, the results of this Component will: (i) foster greater participation by interested parties
in the project; (ii) expand the regional dissemination of knowledge on subterranean waters and the
Guarani Aquifer System; (iii) enhance integration among project participants; (iv) produce
promotional materials for disseminating information on the aquifer and the project; and (v)
promote activities to awaken an interest in the economics of water and conservation of water
quality. This Component will furnish the greatest number of people in the region­including
minority cultures and groups­with information so as to promote their greater participation and
involvement in the project. Stakeholder participation, especially in the formulation of the SAP,
pilot projects in the Hot Spots, and the evaluation and monitoring of the project, will improve the
likelihood of its sustainability.
Execution of this Component is the responsibility of the General Secretariat as well as of the
National Executing Agencies through the NPEUs. The National Executing Agencies will be
specifically responsible for development and/or adaption of national outreach material as well as
project workshops and consultations. In addition, civil society organizations that are awarded
funding through the Citizens' Fund will act as executing entities.
GEF: US $ 0.77 million; co-funding: US $ 0.54 million; total: US $ 1.31 million. Co-funding
includes matching grants from beneficiaries representing US $ 0.05 million.
Project Component 4 - US$0.48 million
Project Monitoring and Evaluation, and Dissemination of Project Results
The objective of this Component is to create and implement a system for recording and analyzing
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progress achieved during the project implementation period. This system will allow early
detection of potential problems, and provide feedback to the participants on the experiences
gained and lessons learned. This Component will include the dissemination of information, results
and lessons learned, with a view to possibly replicating project results under similar conditions
and circumstances elsewhere in the Guarani Aquifer System region and in other transboundary
groundwater areas. It has two sub-components:
4. a) Development and implementation of a monitoring, evaluation and feedback system ­
Based upon agreed management and performance indicators that reflect the project objectives,
consistent with the logical framework analysis (see Annex 1), periodic evaluations of project
progress will be conducted by the Executing and Implementing Agencies. In addition, the
Steering Committee, at its semi-annual meetings, will review the degree to which the project
has fulfilled the key performance indicators. The Guarani Secretariat will also monitor project
results on a regular basis. Goals, criteria and standards to measure and monitor project
performance will be developed and agreed using the GEF-IW process indicators (see Annex
19).
4. b) Dissemination of project results throughout the region and beyond ­ The results of
the project and lessons learned will be disseminated through reports, the Internet, international
conferences, workshops and meetings, and direct exchange of experiences to other existing or
potential groundwater management and protection projects. The General Secretariat will act
as a focal point for the interaction of the Project with other GEF-IW projects in the Latin
American region. Using the Inter-American Water Resources Network (IWRN) and other
media, the project staff will communicate and coordinate activities between GEF-IW projects
to facilitate information-sharing and dissemination of project approaches and results.
In order to contribute to institutional development and to ensure widespread implementation
of the lessons learned through the conduct of the project, governmental stakeholders at the
local and sub-national levels will be provided with specific information on the results of the
project. In this way, the project will promote sustainable follow-up activities at the community
level, and facilitate local ownership of the project findings.
The results of this Component will assist the Executing and Implementing Agencies to
appropriately track project progress. This Component will also provide specific information to the
General Secretariat and project Steering Committee to facilitate their participation in the project
and in ensuring the direction of the project, based upon regular reports and agreed progress
indicators. Specific progress measures, in addition to the key performance indicators identified in
the PAD and consistent with the GEF-IW process indicators, will be developed and agreed under
this Component.
Execution of this Component is the responsibility of the General Secretariat as well as of the
National Executing Agencies through their NPEUs.
GEF: US $ 0.26 million; co-funding: US $ 0.22 million; total US $ 0.48 million.
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Project Component 5 - US$3.73 million
Development of Management and Mitigation Measures within Identified "Hot Spots"
The objective of this Component is to design, apply, and evaluate the costs and feasibility of good
management practices at specific sites within the Guarani Aquifer System region. Appropriate
management and mitigation measures to address specific threats facing the sustainable utilization
of the Guarani Aquifer System will be developed for demonstration purposes. Dissemination of
information on successful management and mitigation measures will be likely to spur concrete
actions in areas currently under threat and/or where existing or emerging conflicts occur,
especially in border areas. The pilot projects will focus on the prevention and mitigation of
specific point and nonpoint sources of pollution, as well as overdrafting of the aquifer in critical
recharge and discharge areas, or in confined areas of the aquifer, where there is a high
concentration of uses and users.
It has been established through technical studies that clear transboundary issues exist in the border
areas of Argentina/Uruguay (well yields are diminishing and some cross border disputes are
apparent due to the importance of these geothermal wells for tourism) and Uruguay/Brazil
(pollution between sister cities across the border). The nature of the aquifer system, i.e. very large
volumes of mainly confined aquifer storage compared to significant ­ but smaller and much more
localized ­ volumes of active recharge, mean that there is a possibility that major development
could provoke large drawdowns with the potential for conflict between competing users. This is
the more significant, given the fact that the most valued exploitation is in the form of `overflowing
geothermal wells' and conservation of such artesian heads is managerially more demanding than
normal aquifer management. Furthermore, the recharge area in Paraguay, bordering Brazil and
Argentina, is a potential area for transboundary impact. These three areas have been included as
Hot Spots with a transboundary focus to be addressed by the project.
In addition, the area of São Paulo is the one experiencing the most extraction and pollution in the
entire aquifer system area. While it is highly unlikely that pollution in São Paulo would reach the
other countries, the technical and institutional assessments have shown that this area can provide
important lessons in terms of decentralized management and monitoring approaches. All four
countries agree that the institutional management framework for the Guarani Aquifer System
needs to be as light as possible, precisely due to its size. Therefore it will be necessary to test
which types of measures will work in border areas and also in areas of significant national
importance.
This component thus comprises two transboundary pilot projects associated with existing and
emerging uses of groundwater, one border area pilot project associated with developing and
understanding of aquifer characteristics, and one pilot project in a heavily urbanized area. In detail
those are:
5. a) Concordia (Argentina) / Salto (Uruguay) ­ This area of the Guarani Aquifer System is
currently experiencing concerns of a transboundary nature related to the exploitation of the
waters of the Guarani Aquifer System for thermal tourism within a confined portion of the
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aquifer. This pilot demonstration project will develop a local understanding of the behavior
and a local joint sustainable management plan of the thermal waters of the Guarani Aquifer
System aimed at the sustainable utilization of these waters. (As noted elsewhere, this activity
will also contribute to the studies and investigations proposed under Component I, and will
also contribute to the assessment of the thermal energy potential of the Guarani Aquifer
System waters to be conducted under Component VI).
5. b) Rivera (Uruguay) / Santana do Livramento (Brazil) ­ This transboundary demonstration
project is designed to assess mechanisms relating to the management and protection of
subterranean waters within an unconfined portion of the aquifer. Specifically, this
sub-component will address the increasing concerns identified within geographic areas
devoted to agricultural development and rural activities with relevant joint growth patterns
observed during the past few years. A local joint management plan for the aquifer will be
elaborated to his effect.
5. c) Encarnación - Ciudad del Este - Caaguazú ­ The border corridor between Paraguay and
Brazil/Argentina is a recharge/discharge area of the Guarani Aquifer System. This Pilot
Project will provide critical information regarding such areas in the Guarani Aquifer System
and address concerns with regard to its vulnerability to human disturbance. Based on the
acquisition of this information, the outcome of this pilot is expected to be an assessment of
and proposal for future management needs in this area.
5. d) Ribeirão Preto (Brazil) ­ In addition to the foregoing, localized contamination and
overdrafting of the aquifer from urban land uses in densely populated portions of the aquifer is
another threat facing the Guarani Aquifer System. Strategic interventions, including Technical
Assistance for the development of a local aquifer management plan in the heavily impacted
area of Ribeirão Preto will be supported by the Project. They will leverage current activities
by the Government of Brazil regarding groundwater protection and management measures in
this area.
These sub-components will involve scientific and technical activities to clarify the hydrogeology,
geophysics, hydrogeochemistry, and hydrodynamics of specific areas within the Guarani Aquifer
System, and, in general, better define the morphology and dynamics of the Guarani Aquifer
System at specific sites of critical importance. The selected, land use-related demonstration
projects are strongly oriented toward identifying, implementing, and evaluating concrete and
sustainable management measures relevant to the aquifer, and in resolving existing and potential
transboundary environmental and water quantity threats as they apply to the Guarani Aquifer
System. On the technical side, they include well inventories, well construction assessments and
assessments of related pollution and overdraft threats. Thus, while these pilot projects include an
element of local/subregional modeling, they focus primarily on the determination and
implementation of measures to mitigate problems and sustainably tap the existing potential of the
aquifer. The projects directly involve local stakeholders and interested parties in the assessment
and decision-making pertaining to the management, administration, and local protection of the
aquifer. The results of this Component will be tried and tested applications, procedures,
methodologies, and legal and fiscal instruments, designed to meet the project objectives, that can
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be replicated elsewhere in the Guarani Aquifer System region or beyond where similar threats
occur. The recharge/discharge area pilot project focuses more on developing an understanding of
aquifer behavior in these critical areas, contributing basic information to, and complementing, the
activities being conducted under Components I and II, and developing a methodology for
assessing human impacts in these critical areas. A detailed description is included in Annex 18.
Execution of this Component is the responsibility of the General Secretariat as well as of the
National Executing Agencies through their NPEUs.
GEF: US $ 2.31 million; co-funding: US $ 1.42 million; total US $ 3.73 million. Within the
co-funding, a BGR contribution in the amount of US $ 0.41 million.
Project Component 6 - US$0.28 million
Assessment of Geothermal Energy Potential
The objective of this Component is to evaluate the geothermal potential of the Guarani Aquifer
System in scientific, technical, economic, financial, and environmental terms, and to provide this
evaluation to the relevant ministries, including energy, within the participating countries. The
thermal waters of the aquifer are currently being exploited on a limited basis for thermal tourism,
primarily in Uruguay and, to a lesser degree, Argentina. Favorable conditions for the occurrence
of thermal waters are likely to exist in Paraguay and in certain places in Brazil. In addition to the
use of these waters for thermal tourism, the possibility exists that these thermal waters could also
be used in industrial processes and for the generation of energy as a substitute for fossil fuels. In
particular, there is a clear interest in tapping the low enthalpy supply of the aquifer. However,
given existing concerns regarding the sustainability of these thermal waters, the energy-related
options will have to be evaluated in technical, economic, social, and environmental terms.
Depending on the results of such an evaluation, pilot activities could be developed to make use of
this potential, and perhaps spur the development of new projects that could be of interest to the
countries. This Component has two phases:
6. a) Phase one ­ During the first year of project execution, existing geohydrological data will
be compiled and evaluated. Data to be used in the evaluation will be acquired under
Component I of the project. These data will provide information on the extent of the thermal
waters of the aquifer, and, through specific modeling activities, permit an assessment of the
sustainability of proposals for exploiting such waters for geothermal energy production.
6. b) Phase two ­ During the second year of project execution, a task force comprised of
representatives of the four countries, supported by world experts in the study and use of the
enthalpic energy, will be created. This task force will conduct a scientific evaluation of the
geothermal potential of the Guarani Aquifer System based upon the data acquired during
Phase one. The task force will also evaluate the technical feasibility of using geothermal
energy, conduct financial and economic analyses and environmental impact studies of possible
future energy production activities. Depending upon the outcome of these actions, and taking
into account technical, economic and environmental considerations, they will identify and
prioritize areas for possible geothermal development. This latter activity, the results of which
will be communicated to the energy ministries in the participating countries, will include
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specific recommendations for future works and for the preparation of thermal projects at the
conceptual level in the four countries, insofar as they are likely to be sustainable. Detailed
Terms of Reference for the task force would be prepared by the General Secretariat during
Year 1 of the Project.
The results of the Component will be specific recommendations for future works, including
proposed areas for possible geothermal development, and concept level proposals for the
formulation of such projects, along with any needed accompanying environmental mitigation
measures. These results, together with the appropriate guidelines to be developed as part of the
SAP, will be shared with the energy ministries of the participating countries and used to guide
decision-making with respect to the future development of this potential. Based upon these results
and recommendations of the task force, each country will be able to consider what steps to take
to further develop identified potentials, including undertaking pilot projects in their territory
should the results warrant.
Execution of this Component is the responsibility of the General Secretariat as well as of the
National Executing Agencies through their NPEUs.
GEF: US $ 0.20 million; co-funding: US $ 0.08 million; total US $ 0.28 million.
Project Component 7 - US$4.04 million
Project Coordination and Management
The objective of this Component is to provide organizational and administrative support to the
project. This Component will include the incremental elements of activities associated with project
leadership and coordination within the regional context, together with analytical capacity and
production of specific material and documents. As noted under Component IV, the General
Secretariat and the Coordination Group will act as focal points for the dissemination of project
results, and coordination with, and communication between, other GEF-IW projects within the
Latin American region. The IWRN and related communication media and mechanisms will be
utilized to facilitate this interaction.
GEF: US $ 1.80 million; co-funding: US $ 2.24 million; total US $ 4.04 million. Within the
co-funding, an OAS contribution in the amount of US $ 0.32 million is included.
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Annex 3: Estimated Project Costs
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Project Budget and Sources of Financing
Project Budget and Sources of Financing
External Contribution (US$ x 1000)
Countries' Contribution (US$ x1000)
GEF
Other Sources1
Subtotal
Subtotal
Uruguay Argentina
Brazil
Paraguay
Amount
%
Amount
%
Amount
%
Amount
%
A. Expansion of the Knowledge Base
4571.1
46.1
470.0
4.7
5041.1
50.9
520.8
538.7
3255.3
556.5
4871.2
49.1
B. Development of a Joint Management Framework
3492.3
49.8
120.0
1.7
3612.3
51.5
496.7
626.6
1785.7
487.7
3396.7
48.5
C. Public and Stakeholder Participation
767.5
58.9
48.0
3.7
815.5
62.5
72.5
97.8
240.5
77.8
488.5
37.5
D. Monitoring, Evaluation and Dissemination
261.4
53.8
261.4
53.8
36.6
46.4
104.9
36.6
224.6
46.2
E. Development of Management and Mitigation
Measures in Hot Spots
2314.1
62.0
410.0
11.0
2724.1
73.0
404.0
188.6
393.9
20.5
1007.0
27.0
F. Assessment of Geothermal Energy Potentials
202.4
70.5
202.4
70.5
21.1
21.1
21.1
21.1
84.5
29.5
G. Project Coordination and Management
1791.3
44.4
320.0
7.9
2111.3
52.4
347.1
404.5
820.8
347.1
1919.5
47.6
TOTAL
13400.1
50.1
1368.0
5.1
14768.1
55.2
1898.8
1923.6
6622.1
1547.3
11991.9
44.8
1) Contributions by BGR, OAS, IAEA, BNWPP, and Beneficiaries.
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Annex 4 Incremental Costs
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
1. Broad Development Goals. The Guarani Aquifer System is situated in the eastern and south
central portions of South America, and underlies parts of Argentina, Brazil, Paraguay, and
Uruguay. This project is a first step toward achieving the long-term objective of a sustainable
management and use of the Guarani Aquifer System. Its purpose is to support the four countries
in jointly elaborating and implementing a common institutional and technical framework for
managing and preserving the Guarani Aquifer System for current and future generations. To
achieve this purpose, seven project components are envisaged: (i) expansion and consolidation of
the current scientific knowledge base regarding the Guarani Aquifer System; (ii) joint
development and implementation of a Guarani Aquifer System Management Framework, based
upon an agreed Strategic Program of Action; (iii) enhancement of public and stakeholder
participation, social communication and environmental education; (iv) evaluation and monitoring
of the project and dissemination of project results; (v) development of regionally-appropriate
groundwater management and mitigation measures in identified "Hot Spots"; (vi) consideration of
the potential to utilize the Guarani Aquifer System's "clean" geothermal energy; and, (vii) project
coordination and management.
2. Baseline Situation. Relatively few investments have been made to date in the project area and
surrounding environs with regard to the monitoring and management of the Guarani Aquifer
System as a resource. Notwithstanding, the countries have acknowledged the increasing pressures
upon the Guarani Aquifer System, and have recently increased their levels of investment in this
system. These consist of: (1) ongoing and long-term development projects for the lands overlying
the Guarani Aquifer System, and (2) environmentally related activities associated with
development programs, executed independently by federal/national, state/provincial, and local
authorities, and (3) some groundwater management programs. Most of the projects tend to be
within the latter categories of investment, and are almost exclusively financed by national
agencies. These agencies include the Subsecretariats for Water Resources, for Planning and Social
Environment, and for Environment, provincial directorates for public works and water/water
resources, and universities in Argentina. In Brazil, these agencies include various national
institutes, corporations and universities, the Secretariat for Water Resources, the National Water
Agency, and state directorates for water and environment. In Paraguay, the agencies include the
Secretariat for Environment, the National Environmental Health Service, the Asuncion Sanitation
Corporation, and the national university. In Uruguay, these agencies include the National
Directorates for Hydrography, for Minerals and Geology, and for Environment, the National
Sanitation Administration, and national university. The studies undertaken by these agencies are
almost exclusively aimed at data acquisition for specific research projects, are largely
uncoordinated, and are designed to fulfill specific national or local purposes. While many of these
projects are relatively uncoordinated, it is anticipated that benefits of the proposed project will be
to coordinate them both within the countries and across the four countries. This will contribute to
the formulation of the Strategic Action Program (SAP) to be realized during the conduct of this
project. Therefore, these investments represent viable in-country programs and activities within
the region that may have impacts on the project activities.

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3. Other baseline activities, which have largely domestic or local impacts, include local
development and water supply works being conducted by the federal and national governments,
provinces, states, and local governments within the region. Data gathered under these programs
will also be available to, and used in, the preparation of the SAP to address environmental and
developmental concerns within the Guarani Aquifer System region.
4. GEF Alternative Scenario. The alternative scenario consists of the implementation of those
actions needed to both introduce the principles of environmentally friendly management and
sustainable development into development projects in the Guarani Aquifer System region. These
actions are designed to achieve global/transboundary environmental benefits by providing a
framework for the sustainable development and management of groundwater resources, and by
addressing transboundary concerns identified through a rigorous program of data gathering and
analysis. The elements of this program will be transferable to similar situations worldwide. The
costs of the actions are those necessary to include sustainable development considerations into
development projects within the region over and above the requirements of the regular
environmental impact assessments and mitigation measures required to be completed under
existing national, federal, provincial and state environmental laws and regulations.
5. Water resources management in the Guarani Aquifer System basin will be directed and
coordinated by the relevant national, federal and subnational agencies, as set forth in specific
national and federal laws. Harmonization and compatibilization of these legal systems, and
existing national and federal programs, in the context of the Guarani Aquifer System is an
important element of this project. To achieve this result, the agencies managing the water
resources of the Guarani Aquifer System, inter alia, will require strengthening both in terms of
institutional functioning and human resource capacity.
6. Reduced contamination, improved public health, and more effective and sustainable use of
available water resources are national benefits to be expected as a result of the activities of this
project. Notwithstanding, these outcomes also have significant impacts in maintaining the Guarani
Aquifer System and, therefore, have additional benefit for the globally significant resources within
the region. However, the full extent of localized benefits cannot be estimated at this time. Thus, it
is assumed that the domestic funding provided is equivalent to the national costs and will
adequately compensate for the domestic benefits achieved.
7. Global Benefits. The global benefit arising from the GEF intervention will be the formulation
of a comprehensive management program to reduce and prevent contamination and pollution that
will not only have significant human benefit in the surrounding countries, but also could have
benefit to regionally significant wetlands, coastal areas, and riverine systems. Given that the
countries are undertaking developmental investments in the Guarani Aquifer System area, it is
also envisaged that project activities will shift these current investments towards a more
sustainable path than they might otherwise take. A strategic program of activities will be
conducted within the Guarani Aquifer System region, which will demonstrate an approach to
(transboundary) groundwater management that could reduce contamination, minimize
overconsumption, and promote sustainable utilization of the resource in the four countries and for
groundwater systems worldwide. A breakdown of expected global benefits, by component,
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follows.
Component I, Expansion and Consolidation of the Current Knowledge Base. The activities set
forth under this component are designed to assess and quantify specific issues of concern within
the Guarani Aquifer System basin identified during the GEF-PDF activities. These issues, to be
qualified within a Transboundary Diagnostic Analysis (TDA), include the identification of the
actual extent and geology of the Guarani Aquifer System; the quality of the waters contained
within the Guarani Aquifer System; aspects of the hydrology, recharge and utilization of the
waters of the Guarani Aquifer System; and the development of a model or suite of models, to be
used in the management of the resource, that describe the Guarani Aquifer System. The proposed
project considers means for identifying and quantifying risks of contamination and overuse of the
Guarani Aquifer System, known to be currently occurring. The baseline costs cover existing
infrastructure, monitoring activities, and investments in the Guarani Aquifer System region. The
project alternative costs are US $ 11.03 million, including the estimated US $ 4.87 million
counterpart contributions from the national and federal governments, and local governmental and
nongovernmental (NGOs) organizations, including educational institutions. Incremental funding
from GEF is $ 4.57 million.
Component II, Joint Development and Implementation of a Guarani Aquifer System Management
Framework. The rational use of water and other natural resources within the Guarani Aquifer
System region is limited by several existing and potential uses of water within the region that are
competing for increased shares of groundwater. This competition can influence the quality and
quantity of groundwater as well as potentially influence ecosystem structure and functioning
where the groundwater system interacts with the land surface. Given the intensity of existing and
potential demands upon this system, development of an integrated program of water resource
management could provide for a significant improvement in the decision-making ability of
regulatory agencies in the region that would result in both global and domestic benefits. Such an
improvement would contribute to achievement of an optimal mix of different groundwater uses,
based upon the corresponding costs and benefits of each use, including, inter alia, environmental
uses, which could support negotiated allocations among the different stakeholders and related
water pricing decisions. Knowledge of the critical factors influencing groundwater behavior, and
experience with methods of negotiation and agreement among competitive users of water, to be
acquired under Components I, III, and V, as well as elements of this Component, will be used for
improving management of natural resources in the basin. This management framework could be
transferred to other transboundary groundwater systems where complex mixes of competitive
water uses exist. The baseline cost of this Component is US $ 1.01 million, representing
investments in operating the existing geohydrometeorological networks and other government
activities. It is rather limited, given that up to now no efforts have been made to create a
crossboundary management system. The project alternative cost is US $ 11.03 million. GEF
incremental funding is US $ 3.49 million.
Component III, Public and Stakeholder Participation. The baseline costs of this component
represent completed and ongoing activities by the governments, provinces, and states for
engaging a variety of stakeholders in the design and implementation of on-the-ground
management activities. It amounts to US $ 0.34 million to cover ongoing environmental
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educational and information programming within the Guarani Aquifer System region. The project
alternative cost is US $ 1.65 million. The actions proposed to be undertaken will expand and
enhance public involvement and stakeholder participation, including indigenous groups, through
broadly-based formal, institution-based as well as informal, community-based educational and
informational opportunities. GEF incremental funding is US $ 0.77 million.
Component IV, Project Monitoring and Evaluation, and Dissemination of Results. Together with
the monitoring and management activities set forth in Components I through III, this Component
will strengthen institutional capacities to monitor and manage the project and to increase and
enhance the human resource capabilities necessary to carry out a program of strategic activities
within the Guarani Aquifer System region, reinforce the capacities of the institutions working in
the Guarani Aquifer System region to collaborate in data-sharing and analytical activities essential
for the sustainable, shared utilization of the resource. The baseline cost of this is Component zero
given that this component refers entirely to this new project. The project alternative cost is US $
0.48 million. GEF incremental funding is US $ 0.26 million.
Component V, Development of Management and Mitigation Measures. Based upon information
gathered during the GEF-PDF activities, together with the monitoring and management activities
set forth in Components I through III, this Component will result in the development of measures
to quantify, analyze, and mitigate the impacts of human use of the Guarani Aquifer System in up
to four specific geographic areas overlying the aquifer. These areas represent current occurrences
of groundwater management issues of concern that are likely to recur within the Guarani Aquifer
System basin; namely, areas of exploitation of the aquifer for geothermal water use, for urban and
industrial water use, and for agricultural water use, and areas of overexploitation of groundwater
resources. The project will focus on two transboundary areas, one vulnerable recharge and
discharge area in Paraguay and one heavily urbanized area in Brazil. The baseline cost of this
Component is US $ 1.1 million. The project alternative cost is US $ 4.83 million. GEF
incremental funding is US $ 2.31 million.
Component VI, Assessment of Geothermal Energy Potential. This Component is designed to
assess the potential utilization of the Guarani Aquifer System for geothermal energy production.
Such utilization is an emerging use that has the potential to conflict with the current use of these
waters for tourism. Nevertheless, geothermal energy production has the potential to provide a
source of "clean energy", which is, as yet, undeveloped and underutilized. The baseline cost of
this Component is zero because investments in geothermal energy are already counted in the
baseline of Component V and due to the fact that assessments of the geothermal energy potential
on a transboundary scale up to now have not entered into government programs. This project will
enable this vital step with regard to strategic assessment of possibilities and threats in using the
geothermal energy potential. The project alternative cost, to consider the future utilization of this
energy source, is US $ 0.28 million. GEF incremental funding is US $ 0.2 million.
Component VII, Project Coordination and Management. In order to ensure a coordinated and
focused approach to the conduct of this project, this Component provides incremental funding for
the management activities of the Guarani Secretariat and national executing agencies responsible
for the day-to-day activities to be carried out by the project participants. Incremental costs of the
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activities of the Steering Committee are also included within this Component. The baseline cost is
zero because without the project, the countries would not need to invest in project coordination
and management. The cost of the project alternative, adding the transboundary consideration to
the current governmental and stakeholder activities and counting the counterpart costs incurred
by the national, federal, state, provincial, and local governments, universities, stakeholders and
NGOs currently active in the Guarani Aquifer System region, is US $ 4.04 million. GEF
incremental funding is US $ 1.80 million.
8. Total co-financing is US $ 13.36 million. The governments are contributing a total of $11.99
million in cash,kind, and taxes foregone. It has been confirmed that the governments will exempt
the OAS from tax liabilities. However, if the OAS ever lost its tax exempt status, then the
governments would be required to pay a cash contribution of $2.14 million toward taxes.
Therefore, the taxes foregone by the countries are considered in the financing plan as counterpart
contribution. A significant amount of resources have been mobilized for the project and associated
financing from the BGR (Bundesanstalt fuer Geowissenschaften und Rohstoffe/Government of
Germany), OAS, IAEA (International Atomic Energy Agency), and World Bank Netherlands
Water Partnership Program (BNWPP) in the amount of US $ 1.3 million is to be made available
for this project. In addition, the IAEA has signaled its willingness to make a further US $300,000
available in a second phase after two years of project implementation. A further contribution to
the project will be made by the Bank Netherlands Partnership Program in the amount of US $
370,000. This additional amount is not included in the project financing plan. It is expected that
additional future financing will be mobilized from other sources, including from the private sector.
This is an explicit target of the Strategic Action Program process.
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Table A4-1: Incremental Cost Matrix (US $M)
Component
Category
Amount
Domestic Benefits
Global Benefits
(1) Expansion and Baseline
1.12
Information on the quality
Consolidation of
and availability of
the Knowledge
groundwater resources in the
Base
Guarani Aquifer System
Alternative
11.03
Same as above, with
Increased protection and
additional information
sustainable use of a
supporting the sustainable
globally significant
use of the resource and
groundwater system
overlying lands with a
transboundary perspective
Increment
4.57
(2) Development
Baseline
1.01
Geohydrometeorological
and
monitoring data
Implementation of
a Management
Framework
Alternative
8.02
Same as above, with added
Positive impacts of
capacity for improved,
coordinated groundwater
sustainable groundwater
management, and
management and
development of
decision-making for the
methodologies able to be
entire Guarani Aquifer
applied to other
System, rather than only for transboundary basins
national subareas
Increment
3.49
(3) Public and
Baseline
0.34
Public awareness of water
Stakeholder
conservation and public
Participation
health issues
Alternative
1.65
Same as above, with public Positive impacts of
support for appropriate
coordinated groundwater
development, utilization and management, and
conservation of groundwater development of programs
able to be applied to other
transboundary basins
Increment
0.77
(4) Project
Baseline
0.0
Monitoring and
Evaluation
Alternative
0.48
Adequate monitoring and
Increased protection of
evaluation of the project, to groundwater quality and
achieve proposed results and quantity with resultant
effective dissemination of
potential benefit to
project results within the
regional biological
countries and worldwide
diversity and maintenance
of surface water resources
Increment
0.26
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Component
Category
Amount
Domestic Benefits
Global Benefits
(5) Development
Baseline
1.1
Monitoring and regulation of
of Management
water and land use, energy,
and Mitigation
and economic development
Measures in Hot
Spots
Alternative
4.83
Same as above, with added
Increased protection of
capacity to monitor and
groundwater quality and
regulate the use and potential quantity with resultant
impacts of land use on
potential benefit to
groundwater quality and
sustainable development
quantity, and promote
and human utilization of
sustainable economic
transboundary
development in the pilot
underground water
areas and beyond
resources
Increment
2.31
(6) Assessment of
Baseline
0.0
Geothermal
Energy Potentials
Alternative
0.28
Increased knowledge about
Development of
sustainable and beneficial
methodologies for the
strategies for development
integrated development
of the geothermal energy
and sustainable
potential, including the
utilization of
development of "clean
geothermal energy
energy" sources
resources
Increment
0.20
(7) Project
Baseline
0.0
Coordination and
Management
Alternative
4.04
Carrying out of adequate
Development of
project management
methodologies for
functions
coordination of
management and
monitoring of
multinational groundwater
systems
Increment
1.80
TOTAL
Baseline
3.57
Alternative
30.33
Global
13.40
Increment
PDF/B Preparation
0.54
Total Project
26.76
Increment
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Annex 5: Financial Summary
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Years Ending
2006
IMPLEMENTATION PERIOD
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Total Financing
Required
Project Costs
Investment Costs
3525.55
7576.1
4790.5
2293.85
0.0
0.0
0.0
Recurrent Costs
1886.95
2411.7
2295.7
1979.45
0.0
0.0
0.0
Total Project Costs
5412.5
9987.8
7086.2
4273.3
0.0
0.0
0.0
Total Financing
5412.5
9987.8
7086.2
4273.3
0.0
0.0
0.0
Financing
IBRD/IDA
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Government
2594.75
3425
3296.9
2675.15
0.0
0.0
0.0
Central
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Provincial
0.0
0.0
0.0
0.0
0.0
0.0
0.0
GEF
2438.2
6142.1
3483.1
1336.1
0.0
0.0
0.0
Cofinanciers:
Beneficiaries
0
19.2
19.2
9.6
0.0
0.0
0.0
BGR
137.5
162.5
162.5
137.5
0.0
0.0
0.0
IAEA
150
150
0
0
0.0
0.0
0.0
BNWPP
12
9
44
35
0.0
0.0
0.0
OAS
80
80
80
80
Total Project Financing
5412.45
9987.8
7085.7
4273.35
0.0
0.0
0.0
Main assumptions:
l
Contributions by the participating countries are in-kind, taxes foregone and in cash.
l
Contribution by the BGR has been officially confirmed in the amount of Euro $664,000, to be contributed
to the project in-kind (i.e. goods, equipment, consultancies). Conservatively, the contribution is included in
the project at an estimated US $600,000. Finalization of the cooperation arrangement with the BGR
depends on agreement between the GOP and BGR.
l
IAEA has confirmed in-kind contribution (isotope analyses, technical assistance, equipment) of $300,000
for the first 2 project years. It is expected that another $300,000 will be made available in a second phase.
l
BNWPP contribution will be through technical assistance to the project.
l
Pending finalization of a separate Grant Agreement between the Bank and the OAS, the BNPP
contribution is not included in this financing plan. It will consist of US$ 370,000 in financial resources for
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a University Capacity Building Fund and has already been approved by the Government of the
Netherlands.
l
OAS contribution is in-kind, i.e. staff time and use of OAS office facilities during the four years of the
project.
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Annex 6: Procurement and Disbursement Arrangements
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Procurement
Capacity Assessment
The General Secretariat of the Organization of American States (OAS), as the designated
recipient of the Grant funds in representation of the four beneficiary countries, will be the
executing entity for the Project and thus responsible for compliance with Bank procurement
procedures. Therefore, a capacity assessment was carried out at OAS headquarters in
Washington, D.C.
The OAS has the necessary infrastructure and human resources, both in headquarters and in the
resident missions in each of the four beneficiary countries, to carry out and manage its
procurement in an orderly and well established manner. It would provide support, as needed, in
the procurement, legal and financial management areas which would facilitate Project execution.
All relevant manuals exist and appear to be applied. OAS has experience in executing Projects
financed by various other external sources, some of which call for particular procurement
requirements; such is the specific case of an on-going GEF Project in the Caribbean (Adaptation
to Global Climate Change).
A small coordinating team will be created as the Guarani Aquifer System General Secretariat
(GS), with oversight by the OAS' Environment and Sustainable Development Unit, to carry out
day-to-day operations, including procurement, and would be located in one of the beneficiary
countries. The General Secretariat will work closely with the four National Technical
Coordinators to execute the Project and it would follow the general direction and leadership of
the Project Steering Committee (the highest authority to be formed by delegates from the
participating countries).
The General Secretariat team will include a coordinator ("General Secretary"), three technical
staff, a financial administrator and an assistant. A procurement specialist will be hired for the
OAS Headquarters project team. The draft Project Implementation Plan (to be finalized by grant
effectiveness) specifies applicable procedures and requirements.
The assessment has been discussed with the Regional Procurement Advisor's Office on October
30, 2001. The risk assessment is AVERAGE as essential actions need to be taken to enable
compliance with Bank requirements.
The following actions are recommended:
(i) Finalization of the Project Implementation Plan (PIP) by Grant effectiveness. The PIP will
contain:
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l
the updated Global Procurement Plan and a specific Plan for the first year of implementation;
l
Outline of the Guarani Secretariat team's organization, responsibilities, and its relation to the
supervisory Unit and to the OAS.
l
With regard to procurement, it will describe document flow, thresholds, methods and steps to
be followed for the types of procurement and contracting, thresholds for Bank's prior review,
and procedures for planning procurement actions and reporting. Annexes to the PIP will
include internal forms and standard Bank documents (for ICB and RFP).
(ii) Selection of a qualified procurement specialist.
Procurement Methods
Methods and thresholds described below are summarized in Table A.
Goods. Equipment includes highly specialized computer systems, to be procured through ICB,
standard computer equipment, office furniture and other minor items. Contracts estimated at
$150,000 or more would be awarded following ICB procedures; and contracts estimated at
US$80,000 or less would follow national/international shopping, up to an aggregate of
US$150,000.
Consultant Services. The Project would finance specialized studies in the areas of hydrology,
geology, hydrochemistry and related fields, model development, monitoring system design,
inventory performance, social and legal issues, etc. Other technical assistance related to
institutional and social and informational aspects, and Project management and evaluation are also
included. Large contracts (over $200,000) would be awarded following internationally advertised
competition.
Contracts valued at over $100,000 would be selected following Quality-Cost based method
(QCBS); contracts estimated at less than $100,000 would follow procedures based on
Consultants' Qualifications (CQ) method, up to an aggregate of $1.3 million.
Individual consultants include long-term contracts for the OAS General Secretariat team and
other shorter term technical assistance. Recruitment would be done according to Section V of the
Bank Consultants Guidelines. The Project would also finance two staff to support the OAS as
Executing Agency of the Project totalling $312,000 for the duration of the Project.
Training Services. The Project includes financing of study tours, staff exchange programs,
organization of workshops and seminars etc. This category would cover rents, training materials,
food, travel expenses, facilitator fees, etc. To the extent applicable, training services would be
awarded through price comparison.
Matching Grants. An amount of $240,000 is included in the Project to finance goods, works
and services under demand-driven subprojects geared to conservation and sustainable use of the
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Guarani Aquifer System. Subproject beneficiaries would be required to cofinance in cash or kind,
in addition to complying with elegibility criteria outlined in the Project Implementation Plan. The
average size of individual subprojects is estimated at $10,000.
Procurement under subprojects would follow commercial practices based on comparison of price
quotations. Direct contracting would be allowed in certain cases with prior approval from OAS
Project team. These procedures, among others, will be contained in the PIP. OAS would be
responsible for ensuring that these requirements are adhered to by the subproject beneficiaries.
Goods, works and services under this category do not form part of the aggregate amounts in
other categories.
Operating Costs. "Recipient's Operating Expenditures" are defined as expenditures for the
reasonable cost of travel for the Recipient's staff assigned to the Project, per diems,
communications and administration of the Project; and
"GAS General Secretariat Operating Expenditures" are defined as expenditures for the reasonable
cost of office supplies, utilities, communications, travel and per diem of General Secretariat staff,
as well as travel and per diem for members of the Project Steering Committee and the National
Project Execution Units. The total amount allocated to these expenditures is $290,000.
Operating expenses incurred by the OAS in its capacity as the Executing Agency for the project
will be reimbursed based on receipts (e.g. travels, per diem) and against predefined outputs in
accordance with the agreed Annual Operational Plans for the project.
Procurement methods (Table A)
Table A: Project Costs by Procurement Arrangements
(US$ million equivalent)

1
Procurement Method




Expenditure Category
ICB

2
NCB
Other
N.B.F.
Total Cost
1. Works
0.00
0.00
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
2. Goods
0.80
0.00
0.16
3.00
3.96
(0.70)
(0.00)
(0.15)
(0.00)
(0.85)
3. Services
0.00
0.00
11.70
3.60
15.30
Consulting
(0.00)
(0.00)
(10.10)
(0.00)
(10.10)
4. Training and Workshops
0.00
0.00
1.70
1.40
3.10
(0.00)
(0.00)
(1.40)
(0.00)
(1.40)
5. Matching Grants
0.00
0.00
0.24
0.05
0.29
(0.00)
(0.00)
(0.24)
(0.00)
(0.24)
6. Operating Costs
0.00
0.00
0.90
3.20
4.10
(0.00)
(0.00)
(0.80)
(0.00)
(0.80)
Total
0.80
0.00
14.70
11.25
26.75
(0.70)
(0.00)
(12.69)
(0.00)
(13.39)
- 73 -

---

1/ Figures in parenthesis are the amounts to be financed by the Bank Grant. All costs include contingencies.
2/ Includes civil works and goods to be procured through shopping, consulting services, services of
contracted staff of the project management office, training, technical assistance services, and incremental
operating costs related to (i) managing the project, and (ii) re-lending project funds to local government
units.
- 74 -

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Table A1: Consultant Selection Arrangements (optional)
(US$ million equivalent)
Selection Method
Consultant Services
Expenditure Category
QCBS
QBS
SFB
LCS
CQ
Other
N.B.F.
1
Total Cost
A. Firms
7.90
0.00
0.00
0.00
1.30
0.00
3.50
12.70
(6.60)
(0.00)
(0.00)
(0.00)
(1.20)
(0.00)
(0.00)
(7.80)
B. Individuals
0.00
0.00
0.00
0.00
0.00
2.50
0.15
2.65
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(2.20)
(0.00)
(2.20)
Total
7.90
0.00
0.00
0.00
1.30
2.50
3.65
15.35
(6.60)
(0.00)
(0.00)
(0.00)
(1.20)
(2.20)
(0.00)
(10.00)
1\ Including contingencies
Note: QCBS = Quality- and Cost-Based Selection
QBS = Quality-based Selection
SFB = Selection under a Fixed Budget
LCS = Least-Cost Selection
CQ = Selection Based on Consultants' Qualifications
Other = Selection of individual consultants (per Section V of Consultants Guidelines),
Commercial Practices, etc.
N.B.F. = Not Bank-financed
Figures in parenthesis are the amounts to be financed by the Bank Grant.
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Prior review thresholds (Table B)
Table B: Thresholds for Procurement Methods and Prior Review 1
Contract Value
Contracts Subject to
Threshold
Procurement
Prior Review
Expenditure Category
(US$ thousands)
Method
(US$ millions)
1. Works
2. Goods
>150
ICB
All
(0.80)
<80
Shopping
First contract
(0.05)
3. Services:
>100
QCBS
All
Consultants
(6.40)
<100
CQ
First contract only
(0.06)
Individual Consultants
>50
Section V of
All contracts and those for
Consultants
key staff in GS's team
Guidelines
(0.50)
4. Miscellaneous
5. Miscellaneous
6. Miscellaneous
Total value of contracts subject to prior review:
$7.81 m.
Overall Procurement Risk Assessment
Average
Frequency of procurement supervision missions proposed: One every 12 months (includes special
procurement supervision for post-review/audits)

_______________________________________________________________________________________________________________
1 Thresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement
Documentation" and contact the Regional Procurement Adviser for guidance.
- 76 -

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Disbursement
Allocation of grant proceeds (Table C)
Table C: Allocation of Grant Proceeds
Expenditure Category
Amount in US$million
Financing Percentage
1. Goods
0.79
100% *
2. Consultant Services
9.70
100%
3. Training and Workshops
1.36
100%
4. Matching Grants
0.24
100% of disbursed amounts
5. Recipient Operating Expenditures
0.29
100% *
6. Guarani Secretariat Operating
0.53
100% *
Expenditures
7. Unallocated
0.49
Total Project Costs
13.40
Total
13.40
* Financing of 100% is based on the fact that the executing agency is not subject to taxation in the
beneficiary countries; thus, the respective governments are foregoing the tax income.
Also, it must be noted that the countries' counterpart contribution through parallel financing is substantial,
as detailed in Table 2 of the main text. The reason for not cofinancing each payment is to avoid
cumbersome administrative dealings that applying counterpart from each of the sources would entail, and
to facilitate keeping Grant accounts clearly separate.
Use of statements of expenditures (SOEs):
Disbursements will be made on the basis of traditional Statements of Expenditures (SOEs) and
Direct Withdrawal Applications (DWAs). In the case of the latter, disbursements will be made on
the basis of full documentation for all expenditures made under contracts requiring prior review
by the Bank, and contracts whose value will be raised above the prior review limits as a result of
amendments. For all other expenditures, disbursements will be made against SOEs: (a) goods
costing less than $80,000; (b) contracts for consulting firms, including NGOs costing less than
$100,000; (c) contracts for individual consultants costing less than $50,000; and (d) all
expenditures relating to training services, matching grants and operating costs. All consolidated
SOEs documentation will be maintained by the OAS for post-review and audit purposes.
Reimbursement requests should be sent to the Bank on a monthly basis.
Special account:
A Special Account in US dollars would be opened by the OAS, using its commercial bank - Bank
of America. The Authorized Allocation to the Special Account would be up to US$1,300,000.
Monthly replenishment of funds will be made on evidence of satisfactory utilization of the
previous advance(s) as evidenced by the documentation submitted in support of disbursement
applications. Deposits into the Special Account and its replenishments, up to the Authorized
Allocation(s) will be made initially on the basis of Applications for Withdrawals (Form 1903)
accompanied with the supporting and other documentation specified in the Disbursement
- 77 -

---

Handbook.
Audit:
An external auditor, acceptable to the Bank, will be contracted by the OAS to carry out an annual
financial audit of the project as required by OP/BP 10.02. 1. The company to be hired annually by
the OAS for auditing of the General Secretariat of the OAS, will also audit the present Project.
For this audit, the separate TOR agreed with the Bank will be applied and a separate audit report
will be furnished.
- 78 -

---

Annex 7: Project Processing Schedule
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Project Schedule
Planned
Actual
Time taken to prepare the project (months)
29
30
First Bank mission (identification)
09/20/1999
09/20/1999
Appraisal mission departure
02/10/2002
12/09/2001
Negotiations
03/04/2002
04/11/2002
Planned Date of Effectiveness
09/01/2002
Prepared by:
General Secretariat of the Guarani Aquifer System Project; Argentina: Ministerio de
Infraestructura y Vivienda, Subsecretaría de Recursos Hídricos; Brazil: Ministério do Meio
Ambiente, Secretaría de Recursos Hídricos; Agência Nacional de Águas; Paraguay: Secretaría del
Ambiente, Dirección General de Recursos Hídricos; Uruguay: Ministério de Transportes y Obras
Públicas, Dirección Nacional de Hidrografía; Secretariat of the Organization of American States.
Preparation assistance:
General Secretariat of the Guarani Project: Eduardo Mestre, Roberto Kirchheim, Griselda
Castagnini;
Argentina: Victor Pochat, María Josefa Fioriti, María Ester Teresa Bondaza, Eugenio García
Santos, Mario Hernandez (National Technical Coordinator);
Brazil: Raymundo Garrido, Júlio Thadeu Kettelhut, Pedro Fernando Brêtas Bastos, Benedito
Braga, Francisca Menezes, Félix Domingues, Luiz Amore (National Coordinator);
Paraguay: Edmundo Rolon, Luis Meyer, Celso Velázquez (National Coordinator), Wilfrido
Castro;
Uruguay: Luis Loureiro (National Coordinator), Luiz Reolón, Roberto Rodríguez Pioli,
Alejandro Arcelus;
Secretariat of the Organization of American States: Jorge Rucks, Enrique Bello, Nelson da
Franca, Lyda Ugas.
Bank staff who worked on the project included:
Name
Speciality
Karin Erika Kemper
Water Resources Specialist/Economist, Task Manager
Alexander E. Bakalian
Water Supply Engineer
Carmen Palaco Nielsen
Procurement Analyst
George Ledec
Environmental Analysis
Mariangeles Sabella
Counsel
Morag van Praag
Disbursement Officer
Musa Asad
Financial Analyst
Luiz Gabriel Azevedo
Water Resources Engineer
Douglas C. Olson
Peer Reviewer, Water Resources Engineer
- 79 -

---

Salman M.A. Salman
Peer Reviewer, Counsel
Alvaro Soler
Economist
Teresa M. Roncal
Procurement Analyst
Enzo De Laurentiis
Procurement Specialist
Michael Carroll
Agriculturist
Weiguo Zhou
Operations Officer
Luiz Noronha
Consultant
Sylvia Michele Diez
Consultant
Janice Molina
Language Program Assistant
Maria Angelica Sotomayor
Consultant/Economist
- 80 -

---

Annex 8: Documents in the Project File*
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
A. Project Implementation Plan
Draft Project Implementation Plan
Component Implementation Plan(s), Costs, Timetable and Procurement Plan
B. Bank Staff Assessments
Procurement Assessment
Financial Management Assessment
Project Concept Document and PCD Review Meeting Minutes
Decision Meeting Minutes
First and second PDF Block B Documentation
GEF Project Brief
GEF Concept Note
Back-to-Office Reports and Aide Memoires
C. Other
Documents prepared during PDF B Project Preparation Phase
I.1
COMPONENT I. Expansion and Consolidation of the Current Knowledge Base on the
Guarani Aquifer System
Survey of all existing technical data:
·
FUNPAR, Informe Final de la Consultoría: Expansión y consolidación de la base actual
de conocimiento básico; Estudios Básicos del Acuífero, February 2001.
Study of the actual and potential uses of the aquifer:
·
Jorge de los Santos and Chang Kiang, Informe Final de la Consultoría: Estudio del uso
actual y potencial del Acuífero Guaraní, March 2001.
I.2
COMPONENT II. Joint Development and Implementation of the Guarani Aquifer
System Management Framework
Definition of relevant information for aquifer monitoring network:
·
Albert Mente, Informe Final de la Consultoría: Definición de información relevante para
la red de monitoreo del acuífero, January 2001.
Technical and conceptual design of the information system:
·
Noemi Tardivo, Informe Final de la Consultoría: Sistema integral de información
- 81 -

---

geográfica para la cogestión del agua del Sistema Acuífero Guaraní, March 2001.
Survey of existing legal-institutional framework:
·
Corina Fernández, Informe Final de la Consultoría: Levantamiento y análisis del Marco
jurídico-institucional y aspectos legales en la materia hídrica ambiental de Argentina, March
2001.
·
Cid Tomanik Pompeu, Informe Final de la Consultoría: Levantamiento y análisis del
Marco jurídico-institucional y aspectos legales en la materia hídrica ambiental de Brasil, March
2001.
·
Lauro Ramírez, Informe Final de la Consultoría: Levantamiento y análisis del Marco
jurídico-institucional y aspectos legales en la materia hídrica ambiental de Paraguay, April
2001.
·
Arturo Navarro, Informe Final de la Consultoría: Levantamiento y análisis del Marco
jurídico-institucional y aspectos legales en la materia hídrica ambiental de Uruguay, February
2001.
Preparation of TOR for a Strategic Action Plan:
·
Jorge Rucks, Stephen Foster, Roberto Ronchietto, Luiz Noronha, Eduardo Mestre,
Roberto Kirchheim, Griselda Castagnino, Informe Final del PEA : Programa Estratégico de
Acción: Resumen Ejecutivo, Descripción y Términos de Referencia, March 2001.
Institutional assessment of involved agencies and institutions:
·
Luiz Noronha, Informe Final de la Consultoría: Propuesta de Desarrollo Institucional y
de Arreglos Institucionales, April 2001.
I.3
COMPONENT III. Public Participation
Identification of stakeholders, education and communication needs, and pilot projects for public
participation:
·
María Elena González Pioli, Informe Final de la Consultoría: Necesidades de educación
ambiental y del agua, comunicación social y proyectos piloto para la participación e
involucramiento público, March 2001.
Definition of mechanisms for communication and public participation in decision making:
·
Mario Bernalt, Informe Final de la Consultoría : Identificación de actores, definición de
mecanismos para comunicación y participación pública que se requerirán durante el proceso
de ejecución del
proyecto, March 2001.
Indigenous Peoples Participation:
l
Esther Prieto, Informe Final de la Consultoría : Participación e Involucramiento de las
Comunidades Indígenas en las actividades de Gestión Sostenible e Integrada, y Protección
Ambiental del Sistema Acuífero Guaraní, Informe Final - República de Paraguay. Sept.
- 82 -

---

2001.
l
Esther Prieto, Informe Final de la Consultoría : Participación e Involucramiento de las
Comunidades Indígenas en las actividades de Gestión Sostenible e Integrada, y Protección
Ambiental del Sistema Acuífero Guaraní, Informe Final - República Argentina. Sept. 2001.
l
Juracilda Veiga, As populações indígenas e as iniciativas de proteção ambiental e manejo
sustentável do Sistema Aqüífero Guarani. July 2001.
Project Workshops and Meeting Reports:
·
Proceedings of the Seminar on the Guarani Aquifer, Foz do Iguaçu; January 31 ­ February
1, 2000.
·
Reports of the Project Workshops:
a.
July 12-14, 2000 - Santa Fe, Lanzamiento del Proyecto, implementación de
arreglos institucionales y definición de marco Lógico y aspectos técnico-científicos del Programa
del PSAG;
b.
November 28-29, 2000 - Asunción, Revisión de Avances del Proyecto y
Reorientaciones de Aspectos Técnicos, Científicos y Legales - Institucionales para apoyar la
Preparación del Proyecto;
c.
March 14-17, 2001 - Montevideo, Propuesta de PEA, incluyendo TORs;
definición de Bases
de las Componentes 1 y 5 del Documento de Proyecto;
d.
April 3-4, 2001 - Montevideo, Académicos, Revisión de Componentes 1, 5 y 6 de
la
Descripción del Proyecto;
e.
April 23-24, 2001 - Montevideo; Revisión de la Estructura y contenidos de la
Descripción del
Proyecto;
f.
May 7-8, 2001 - Asunción; Revisión y contrapropuesta de Arreglos
Institucionales; Revisión de las bases de Costos del Proyecto;
g.
May 28-30, 2001 - Salto; Revisión y Consenso de la Documentación resultante de
la Fase de
Preparación del Proyecto; para la Protección Ambiental y Desarrollo Sostenible
del Sistema Acuífero Guaraní
I.4
COMPONENT IV. Project Monitoring and Evaluation, and Dissemination of Project
Results
Project Monitoring and Evaluation Plan
I.5
COMPONENT V. Development of Management and Mitigation Measures within
Identified "Hot Spots"
Identification of possible pilot areas for implementation of programs and development of TORs
for pilot programs:
·
Alberto Calcagno, Informe Final de la Consultoría : identificación de áreas para la
- 83 -

---

ejecución de programas y acciones piloto y definición de términos de referencia, March 2001.
I.6
COMPONENT VI. Development of Geothermal Energy Potentials
·
Hydrothermalism. Lars Tallbacka, Informe Final de la Consultoría : Geothermal Project
Component, June 2001.
I.7
COMPONENT VII. Project Coordination and Management
Incremental cost analysis:
·
Roberto Ronchietto, Informe Final de la Consultoría : Análisis de Costos Incrementales
del Proyecto. June 2001.
*Including electronic files
- 84 -

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Annex 9: Statement of Loans and Credits
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
02-Apr-2002
Argentina
Difference between expected
and actual
Original Amount in US$ Millions
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P069913
2002 AR Santa Fe Provincial Reform
330.00
0.00
0.00
0.00
176.70
0.00
0.00
P070374
2002 AR PROFAM LIL
5.00
0.00
0.00
0.00
5.00
0.40
0.00
P073591
2002 AR SAL 1
400.00
0.00
0.00
0.00
200.00
200.00
0.00
P057473
2001 AR INDIGENOUS COMMUNITY DEVELOPMENT LIL
5.00
0.00
0.00
0.00
5.00
1.00
0.00
P057459
2001 +R Sustainable Fisheries Magmt (LIL)
5.00
0.00
0.00
0.00
5.00
0.00
0.00
P044447
2001 AR Catamarca Provincial Reform
70.70
0.00
0.00
0.00
44.30
20.00
0.00
P068344
2001 AR Cordoba PRL5
303.00
0.00
0.00
0.00
200.00
100.00
0.00
P064614
2001 AR- Second Secondary Education Project
56.99
0.00
0.00
0.00
54.42
-2.57
0.00
P055482
2000 AR-Pub. Hlth. Surv. & Disease Control
52.50
0.00
0.00
0.00
46.82
33.60
0.00
P057449
1999 AR State Modernization
30.30
0.00
0.00
0.00
24.59
24.59
0.00
P045048
1999 RENEW.ENERGY R.MKTS
0.00
0.00
10.00
0.00
8.38
4.98
0.00
P006043
1999 RENEW.ENERGY R.MKTS
30.00
0.00
0.00
0.00
28.39
12.09
0.00
P006046
1999 WATER SCTR RFRM
30.00
0.00
0.00
0.00
26.98
24.48
3.98
P055461
1999 AR SOC&FISC NTL ID SYS
10.00
0.00
0.00
0.00
3.45
3.45
2.24
P006058
1999 AR-Social Prot.4
90.80
0.00
0.00
0.00
65.22
43.83
0.00
P050714
1998 AR-Secondary Ed. 3
119.00
0.00
0.00
0.00
8.06
8.06
0.00
P006041
1998 SMALL FARMER DV.
75.00
0.00
0.00
0.00
35.19
31.34
31.34
P049269
1998 AR-Social Protec.3
284.00
0.00
0.00
0.00
6.93
6.93
0.00
P050713
1998 AR MODEL COURT DEV.
5.00
0.00
0.00
0.00
3.53
3.53
0.00
P006050
1998 POLLUTION MGT.
18.00
0.00
0.00
6.00
10.76
14.81
1.42
P055935
1998 EL NINO EMERGENCY FLOOD PROJECT
42.00
0.00
0.00
0.00
20.14
20.14
20.14
P039787
1998 GEF AR-BIODIVERSITY CONSERVATION
0.00
0.00
10.10
0.00
7.86
1.15
0.00
P052590
1998 NAT HWY REHAB&MAINT
450.00
0.00
0.00
0.00
161.15
146.28
0.00
P039584
1997 B.A.URB.TSP
200.00
0.00
0.00
0.00
125.89
108.89
20.89
P040808
1997 N.FOREST/PROTC
19.50
0.00
0.00
0.00
11.36
3.36
0.00
P006052
1997 FLOOD PROTECTION
200.00
0.00
0.00
0.00
133.37
130.37
126.37
P006059
1997 AR-Maternal & Child Hlth & Nutrition 2
100.00
0.00
0.00
0.00
49.18
24.18
0.00
P006010
1997 PROV AG DEVT I
125.00
0.00
0.00
0.00
107.77
69.54
37.56
P005980
1997 PROV ROADS
300.00
0.00
0.00
0.00
214.86
200.86
0.00
P043418
1997 AR-AIDS and STD Control
15.00
0.00
0.00
0.00
2.18
2.18
0.00
P046821
1997 AR PENSION TA
20.00
0.00
0.00
0.00
3.64
3.64
-0.74
P006040
1996 FORESTRY/DV
16.00
0.00
0.00
0.00
5.31
4.46
0.00
P006057
1996 AR-SECONDARY ED. 2
115.50
0.00
0.00
0.00
37.10
37.10
0.00
P037049
1996 AR PUB.INV.STRENGTHG
16.00
0.00
0.00
5.50
5.69
11.19
0.00
P034091
1996 AR-Higher Ed. Reform
165.00
0.00
0.00
25.40
29.62
55.02
34.97
P006018
1995 AR PROV DEVT II
225.00
0.00
0.00
0.00
26.75
16.25
0.00
P006060
1995 MUNIC DEVT II
210.00
0.00
0.00
2.92
45.19
19.62
0.00
P005968
1987 SEGBA V
276.00
0.00
0.00
10.46
17.20
27.66
8.65
Total:
4415.29
0.00
20.10
50.28
1962.97
1412.40
286.83
- 85 -

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LATIN AMERICA
STATEMENT OF IFC's
Held and Disbursed Portfolio
Jan - 2002
In Millions US Dollars
Committed
Disbursed
IFC
IFC
FY Approval
Company
Loan
Equity
Quasi
Partic
Loan
Equity
Quasi
Partic
2000
ASF
20.00
0.00
0.00
20.50
20.00
0.00
0.00
20.50
1998
AUTCL
5.22
0.00
0.00
0.00
5.22
0.00
0.00
0.00
1994
Aceitera Chabas
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1994
Aceitera General
5.00
0.00
0.00
0.00
5.00
0.00
0.00
0.00
1960/95/97/99
Acindar
48.61
0.00
0.00
0.00
48.61
0.00
0.00
0.00
1994/95/96
Aguas
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1977/84/86/88/94/96
Alpargatas
10.00
0.00
0.00
40.50
10.00
0.00
0.00
40.50
1999
American Plast
8.00
0.00
0.00
0.00
8.00
0.00
0.00
0.00
1993
Arg Equity Inv.
0.00
2.79
0.00
0.00
0.00
2.79
0.00
0.00
2000
Argentina SMMC
34.40
12.50
0.00
0.00
30.96
12.50
0.00
0.00
1989/91/96
BBV Bco. Frances
0.89
0.00
0.00
0.00
0.89
0.00
0.00
0.00
1994/99
BGN
0.00
0.00
33.00
0.00
0.00
0.00
33.00
0.00
2001
BSFE
20.00
0.00
0.00
0.00
5.83
0.00
0.00
0.00
1996/99
Banco Galicia
0.00
0.00
0.00
45.00
0.00
0.00
0.00
45.00
1996
Bansud
2.64
0.00
0.00
0.00
2.64
0.00
0.00
0.00
2000
Bco Hipotecario
25.00
0.00
0.00
102.50
25.00
0.00
0.00
102.50
1996
Brahma - ARG
4.29
0.00
8.50
6.60
4.29
0.00
8.50
6.60
1997
Bunge-Ceval
10.72
0.00
5.00
0.00
10.72
0.00
5.00
0.00
1996
CAPSA
6.55
0.00
5.00
18.00
6.55
0.00
5.00
18.00
1999
CCI
0.00
20.00
6.00
0.00
0.00
20.00
6.00
0.00
1995
CEPA
6.67
0.00
3.00
1.20
6.67
0.00
3.00
1.20
2000
Cefas
10.00
0.00
5.00
0.00
6.00
0.00
5.00
0.00
1999
Correo Argentino
63.00
6.82
5.18
0.00
63.00
6.82
5.18
0.00
1994/95
EDENOR
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1998
F.V. S.A.
9.00
0.00
4.00
0.00
9.00
0.00
4.00
0.00
1998
FAID
0.00
2.75
0.00
0.00
0.00
2.75
0.00
0.00
2000
FAPLAC
10.00
0.00
5.00
0.00
10.00
0.00
5.00
0.00
1992
FEPSA
1.10
0.00
2.00
0.00
1.10
0.00
2.00
0.00
1997
FRIAR
10.00
0.00
2.50
7.00
10.00
0.00
2.50
7.00
1996
Grunbaum
6.00
0.00
2.00
3.33
6.00
0.00
2.00
3.33
1995/97
HSBC Argentina
25.00
0.00
0.00
0.00
25.00
0.00
0.00
0.00
1998
Hospital Privado
9.06
0.00
0.00
0.00
9.06
0.00
0.00
0.00
1992
Huantraico
0.00
17.00
0.00
0.00
0.00
0.00
0.00
0.00
1995/97
Kleppe/Caldero
6.00
0.00
0.00
0.00
6.00
0.00
0.00
0.00
1996
MBA
0.00
0.16
0.00
0.00
0.00
0.16
0.00
0.00
1992/93/96
Malteria Pampa
2.00
0.00
1.00
0.00
2.00
0.00
1.00
0.00
0/97
Milkaut
5.63
0.00
10.00
1.50
5.63
0.00
10.00
1.50
78/81/86/87/91/3/6/8
Minetti
30.00
0.00
14.00
100.00
30.00
0.00
14.00
100.00
1993/94
Molinos
0.00
1.24
0.00
0.00
0.00
1.24
0.00
0.00
1995
Nahuelsat
10.00
5.00
0.00
0.00
10.00
5.00
0.00
0.00
1996/99
Neuquen Basin
0.00
5.00
0.00
0.00
0.00
0.00
0.00
0.00
1993
Nuevo Central
1.25
3.00
0.00
0.00
1.25
3.00
0.00
0.00
1992/95
PAE - Argentine
3.64
0.00
0.00
7.27
3.64
0.00
0.00
7.27
1998
Patagonia
3.30
0.00
1.00
0.00
3.30
0.00
1.00
0.00
Total Portfolio:
587.25
117.41
155.05
591.13
562.64
86.84
155.05
591.13
- 86 -

---

Approvals Pending Commitment
FY Approval
Company
Loan
Equity
Quasi
Partic
1999
American Plast
0.00
0.00
0.35
0.00
2000
APSF
0.00
0.00
0.00
9.50
2000
Argentina SMMC
50.00
0.00
37.50
450.00
2001
Edenor SME
20.00
0.00
0.00
0.00
2002
EDET
20.00
15.00
0.00
50.00
2001
Eki
9.50
2.50
0.00
0.00
2001
Gasnor
20.00
0.00
0.00
20.00
2000
Hipotecario USCP
25.00
0.00
0.00
0.00
2001
ITBA
7.00
0.00
0.00
0.00
Total Pending Commitment:
151.50
17.50
37.85
529.50
- 87 -

---

Brazil
02-Apr-2002
Difference between expected
and actual
Original Amount in US$ Millions
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
SF
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P051696
2002 SÃO PAULO METRO LINE 4 PROJECT
209.00
0.00
0.00
0.00
0.00
209.00
0.00
0.00
P055954
2002 GOIÁS STATE HIGHWAY MANAGEMENT
65.00
0.00
0.00
0.00
0.00
64.35
3.45
0.00
P057665
2002 BR-FAMILY HEALTH EXTENSION PROJECT
68.00
0.00
0.00
0.00
0.00
68.00
0.00
0.00
P060221
2002 FORTALEZA METROPOLITAN TRANSPORT
85.00
0.00
0.00
0.00
0.00
87.88
0.00
0.00
P073192
2002 PROJECT
14.50
0.00
0.00
0.00
0.00
14.46
0.00
0.00
P074085
2002 TA Financial Sector
20.80
0.00
0.00
0.00
0.00
20.80
0.00
0.00
P057649
2001 Sergipe Rural Poverty Reduction
54.35
0.00
0.00
0.00
0.00
51.31
6.33
0.00
P073294
2001 Rural Poverty Reduction Project - BA
8.88
0.00
0.00
0.00
0.00
8.79
2.26
0.00
P050881
2001 BR Fiscal & Fin. Mgmt. TAL
22.50
0.00
0.00
0.00
0.00
22.50
6.00
0.00
P050880
2001 RURAL POVERTY REDUCTION PROJECT - PI
30.10
0.00
0.00
0.00
0.00
28.90
0.80
0.00
P050875
2001 Rural Poverty Reduction Project - PE
37.50
0.00
0.00
0.00
0.00
34.63
4.70
0.00
P050772
2001 Rural Poverty Reduction Project - CE
202.10
0.00
0.00
0.00
0.00
180.93
23.00
0.00
P059566
2001 LAND-BASED POVERTY ALLEVIATION I (SIM)
90.00
0.00
0.00
0.00
0.00
88.24
-1.76
0.00
P059565
2001 BR- CEARA BASIC EDUCATION
69.60
0.00
0.00
0.00
0.00
40.72
-10.18
0.00
P062619
2000 BR- BA BASIC EDU PROJECT (PHASE I)
5.05
0.00
0.00
0.00
0.00
1.32
0.67
-0.68
P039200
2000 INSS REF LIL
43.40
0.00
0.00
0.00
0.00
42.66
11.26
0.00
P047309
2000 ENERGY EFFICIENCY (ELETROBRAS)
0.00
0.00
0.00
15.00
0.00
11.69
2.57
0.00
P039199
2000 BR ENERGY EFFICIENCY (GEF)
30.30
0.00
0.00
0.00
0.00
29.60
-0.70
0.00
P050776
2000 PROSANEAR 2
50.00
0.00
0.00
0.00
0.00
40.40
-9.60
0.00
P006449
2000 NE Microfinance Development
136.00
0.00
0.00
0.00
0.00
124.97
44.44
0.00
P035741
2000 CEARA WTR MGT (PROGERIRH) (SIM)
15.00
0.00
0.00
0.00
0.00
13.37
8.47
6.44
P048869
1999 NATL ENV 2
150.00
0.00
0.00
0.00
0.00
107.67
70.17
0.00
P050763
1999 SALVADOR URBAN TRANS
202.00
0.00
0.00
0.00
0.00
53.33
-21.67
0.00
P058129
1999 BR- Fundescola 2
15.00
0.00
0.00
0.00
0.00
9.18
9.18
9.18
P043874
1999 BR EMER. FIRE PREVENTION (ERL)
100.00
0.00
0.00
0.00
0.00
61.87
61.87
0.00
P054120
1999 BR- DISEASE SURVEILLANCE - VIGISUS
165.00
0.00
0.00
0.00
3.50
49.13
45.13
0.00
P038895
1998 BR- AIDS & STD Control II
198.00
0.00
0.00
0.00
0.00
125.71
113.60
58.71
P038947
1998 FED.WTR MGT
155.00
0.00
0.00
0.00
0.00
123.61
123.61
0.00
P057910
1998 BR- SC. & TECH 3
5.00
0.00
0.00
0.00
0.00
3.06
3.06
-0.54
P051701
1998 BR PENSION REFORM LIL
80.00
0.00
0.00
0.00
0.00
10.37
-1.23
0.00
P043420
1998 MARANHAO R.POVERTY
150.00
0.00
0.00
0.00
0.00
146.99
139.38
120.06
P042565
1998 WATER S.MOD.2
60.00
0.00
0.00
0.00
0.00
28.91
17.11
0.00
P035728
1998 PARAIBA R.POVERTY
51.00
0.00
0.00
0.00
0.00
29.91
27.15
8.42
P006559
1998 BAHIA WTR RESOURCES
45.00
0.00
0.00
0.00
0.00
25.02
25.02
0.00
P006474
1998 (BF-R)SP.TSP
55.00
0.00
0.00
0.00
0.00
52.66
35.26
21.66
P048357
1998 BR LAND MGT 3 (SAO PAULO)
20.00
0.00
0.00
0.00
0.00
0.02
0.02
-7.30
P043421
1998 BRAZIL CEN.BANK TAL
186.00
0.00
0.00
0.00
17.17
138.11
155.28
0.00
P006475
1997 RJ M.TRANSIT PRJ.
90.00
0.00
0.00
0.00
0.00
23.77
23.77
0.00
P046052
1997 LAND RFM PILOT (SIM)
9.60
0.00
0.00
0.00
0.00
2.19
2.19
1.42
P006562
1997 CEARA WATER PILOT (SIM)
100.00
0.00
0.00
0.00
0.00
54.06
54.06
3.37
P038896
1997 BAHIA MUN.DV
24.00
0.00
0.00
0.00
0.00
0.57
0.57
0.00
P034578
1997 R.POVERTY(RGN)
70.00
0.00
0.00
0.00
0.00
53.55
50.55
37.55
P043873
1997 RGS HWY MGT
60.00
0.00
0.00
0.00
0.00
34.15
32.86
19.90
P006532
1997 AG TECH DEV.
300.00
0.00
0.00
0.00
0.00
156.71
156.71
42.93
P043868
1997 FED HWY DECENTR
100.00
0.00
0.00
0.00
0.00
60.38
42.56
16.51
P040028
1996 RGS LAND MGT/POVERTY
350.00
0.00
0.00
0.00
75.00
17.92
92.92
17.92
P006210
1996 RAILWAYS RESTRUCTURG
0.00
0.00
0.00
10.00
0.00
3.17
4.44
5.06
P037828
1996 GEF BR-NAT'L BIODIVERSITY
175.00
0.00
0.00
0.00
0.00
84.50
82.70
58.73
P006554
1996 BR (PR)R.POVERTY
300.00
0.00
0.00
0.00
0.00
110.89
110.89
0.00
P006564
1995 BR- HEALTH SECTOR REFORM - REFORSUS
99.00
0.00
0.00
0.00
0.00
18.12
18.12
0.00
P038882
1995 BELO H M.TSP
102.00
0.00
0.00
0.00
0.00
18.99
18.99
0.00
P006436
1995 RECIFE M.TSP
140.00
0.00
0.00
0.00
0.00
21.29
21.29
12.29
P006543
1994 Ceara Urban Development & Water Resource
150.00
0.00
0.00
0.00
0.00
3.71
3.71
0.00
BR- MINAS GERAIS BASIC EDU.
- 88 -

---

Difference between expected
and actual
Original Amount in US$ Millions
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
SF
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P006522
1994 ESP.SANTO WATER
154.00
0.00
0.00
0.00
54.00
13.19
67.19
6.70
P006541
1993 BR WTR Q/PLN(SP/PR/FED)
245.00
0.00
0.00
0.00
5.15
4.16
9.31
2.71
P006505
1992 MATO GROSSO NAT RES
205.00
0.00
0.00
0.00
15.00
12.12
27.12
0.00
P006454
1992 RONDONIA NTRL RES. M
167.00
0.00
0.00
0.00
10.00
10.84
20.84
0.00
Total:
5,734.68
0.00
0.00
25.00
179.83
2,854.35
1,735.45
441.06
- 89 -

---

Brazil
STATEMENT OF IFC's
Held and Disbursed Portfolio
Jan - 2002
In Millions US Dollars
Committed
Disbursed
IFC
IFC
FY Approval
Company
Loan
Equity
Quasi
Partic
Loan
Equity
Quasi
Partic
1997
Guilman-Amorim
25.78
0.00
0.00
57.47
25.78
0.00
0.00
57.47
1998
Icatu Equity
0.00
20.00
0.00
0.00
0.00
12.14
0.00
0.00
1999
Innova SA
20.00
5.00
0.00
60.00
20.00
5.00
0.00
60.00
1980/87/97
Ipiranga
29.33
0.00
0.00
57.27
29.33
0.00
0.00
57.27
1999
Itaberaba
0.00
5.34
0.00
0.00
0.00
5.34
0.00
0.00
1999
JOSAPAR
8.00
0.00
7.00
0.00
3.00
0.00
7.00
0.00
1995
LATASA - Brazil
1.33
0.00
5.00
0.00
1.33
0.00
5.00
0.00
1995
Lojas Americana
14.00
0.00
5.00
2.00
14.00
0.00
5.00
2.00
1987/92/96/99
MBR
20.00
0.00
0.00
0.00
20.00
0.00
0.00
0.00
0
Macedo Nordeste
6.33
0.00
5.00
0.00
6.33
0.00
5.00
0.00
1996
Mallory
4.36
0.00
0.00
0.00
4.36
0.00
0.00
0.00
1975/96
Oxiteno NE
10.00
5.00
0.00
0.00
10.00
0.00
0.00
0.00
1994
Para Pigmentos
21.50
0.00
9.00
12.32
21.50
0.00
9.00
12.32
1987/96
Perdigao
15.31
0.00
0.00
2.00
15.31
0.00
0.00
2.00
1989/95
Politeno Ind.
5.85
0.00
0.00
0.00
5.85
0.00
0.00
0.00
1994/00/02
Portobello
0.00
1.15
0.00
0.00
0.00
1.15
0.00
0.00
2000
Puras
4.67
0.00
0.00
0.00
4.67
0.00
0.00
0.00
1998
Randon
6.53
0.00
3.00
0.00
6.53
0.00
3.00
0.00
1991
Rhodia-Ster
0.00
5.95
0.00
0.00
0.00
5.95
0.00
0.00
1995
Rhodiaco/PTA
7.50
0.00
0.00
3.00
7.50
0.00
0.00
3.00
1990
Ripasa
0.00
5.00
0.00
0.00
0.00
5.00
0.00
0.00
1997
Rodovia
27.22
0.00
0.00
47.70
27.22
0.00
0.00
47.70

S.A.I.C.C.
0.00
2.85
0.00
0.00
0.00
2.85
0.00
0.00
1994/96
SP Alpargatas
16.67
0.00
5.00
0.00
16.67
0.00
5.00
0.00
1987/97
Sadia
20.50
0.00
6.83
109.33
20.50
0.00
6.83
109.33
1994/95/97
Samarco
11.70
0.00
0.00
6.67
11.70
0.00
0.00
6.67
1997
Samaritano
20.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2000
Saraiva
10.38
3.00
0.00
0.00
10.38
3.00
0.00
0.00
1998
Seara Alimentos
0.00
3.88
0.00
0.00
0.00
3.88
0.00
0.00
0
Sepetiba
32.00
0.00
0.00
8.00
17.00
0.00
0.00
8.00
2001
Sucorrico
7.50
0.00
0.00
0.00
7.50
0.00
0.00
0.00
1997
Synteko
18.00
0.00
0.00
0.00
18.00
0.00
0.00
0.00
2001
TIGRE
13.46
0.00
5.00
6.41
13.46
0.00
5.00
6.41
1996
TRIKEM
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1992/93
Tecon Rio Grande
6.65
0.00
5.50
14.84
6.65
0.00
5.50
14.84
1998
Tecon Salvador
3.50
1.00
0.00
5.00
3.50
0.77
0.00
5.00
2001
Votorantim
1.43
0.00
0.00
0.00
1.43
0.00
0.00
0.00
1993
Vulcabras
16.68
0.00
0.00
0.00
16.68
0.00
0.00
0.00
1999
Wembley
0.00
10.00
0.00
0.00
0.00
10.00
0.00
0.00
1997
Wiest
0.00
0.00
8.00
0.00
0.00
0.00
8.00
0.00
1999
AG Concession
0.00
15.00
15.00
0.00
0.00
0.00
0.00
0.00
2001
Algar Telecom
0.00
8.17
0.00
0.00
0.00
8.17
0.00
0.00
1996/97
Apolo
8.00
0.00
0.00
0.00
3.00
0.00
0.00
0.00
2001
Arteb
20.00
7.00
0.00
18.33
20.00
7.00
0.00
18.33
1998
Total Portfolio:
731.43
159.78
133.83
649.28
657.65
131.34
115.53
644.16
- 90 -

---

Approvals Pending Commitment
FY Approval
Company
Loan
Equity
Quasi
Partic
2002
Banco Itau
0.00
0.00
0.00
100.00
2000
BBA
10.00
0.00
0.00
50.00
2001
Brad Templeton
0.00
0.00
20.00
0.00
2001
Cataguazes
45.00
0.00
0.00
40.00
1999
Cibrasec
0.00
0.00
7.50
0.00
2001
Satipel
15.00
15.00
0.00
0.00
2002
Unibanco-CL
0.00
0.00
0.00
150.00
2001
Unisul
15.00
0.00
0.00
0.00
2002
Univali
10.00
0.00
0.00
0.00
Total Pending Commitment:
95.00
15.00
27.50
340.00
- 91 -

---

Paraguay
02-Apr-2002
Difference between expected
and actual
Original Amount in US$ Millions
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
SF
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P069269
2002 PY Pilot Community Development Project
9.00
0.00
0.00
0.00
0.00
9.00
0.00
0.00
P039983
1998 4th RURAL WATER SUPPLY & SANITATION
40.00
0.00
0.00
0.00
0.00
32.76
25.80
21.22
P007927
1997 PY-M.HLTH/CHD.DV.
21.80
0.00
0.00
0.00
0.00
7.41
5.30
1.47
P007926
1995 ASUNCION SEWERAGE
46.50
0.00
0.00
0.00
15.00
10.12
23.88
0.00
P007918
1994 NTL RES MGMT I
50.00
0.00
0.00
0.00
0.00
21.22
20.71
15.32
Total:
167.30
0.00
0.00
0.00
15.00
80.51
75.69
38.01
Paraguay
STATEMENT OF IFC's
Held and Disbursed Portfolio
Jan - 2002
In Millions US Dollars
Committed
Disbursed
IFC
IFC
FY Approval
Company
Loan
Equity
Quasi
Partic
Loan
Equity
Quasi
Partic
Total Portfolio:
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Approvals Pending Commitment
FY Approval
Company
Loan
Equity
Quasi
Partic
Total Pending Commitment:
0.00
0.00
0.00
0.00
- 92 -

---

Uruguay
02-Apr-2002
Difference between expected
and actual
Original Amount in US$ Millions
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
SF
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P074543
2002 FOOT & MOUTH DISEASE - ERL
18.50
0.00
0.00
0.00
0.00
11.07
-7.43
0.00
P070058
2001 PUBLIC SERVICES MODERNIZATION TA
6.00
0.00
0.00
0.00
0.00
5.79
0.19
0.00
P063383
2000 APL OSE MOD&REHAB.
27.00
0.00
0.00
0.00
0.00
24.73
-2.27
0.00
P049267
1999 TRANSPORT II
64.50
0.00
0.00
0.00
0.00
1.79
0.14
0.00
P041994
1999 UY-BASIC ED2
28.00
0.00
0.00
0.00
0.00
7.85
5.30
0.00
P039203
1997 FOREST PROD.TSP
76.00
0.00
0.00
0.00
5.00
43.73
48.73
0.00
P008177
1996 POWER TRNMSN & DISTR
125.00
0.00
0.00
0.00
0.00
68.24
67.34
0.00
P008161
1995 UY-HEALTH SECTOR DEVELOPMENT
15.60
0.00
0.00
0.00
5.00
2.25
7.25
2.25
P008173
1994 IRRG NAT RES MGMT
41.00
0.00
0.00
0.00
0.00
0.08
0.08
-0.76
Total:
401.60
0.00
0.00
0.00
10.00
165.53
119.33
1.49
Uruguay
STATEMENT OF IFC's
Held and Disbursed Portfolio
Jan - 2002
In Millions US Dollars
Committed
Disbursed
IFC
IFC
FY Approval
Company
Loan
Equity
Quasi
Partic
Loan
Equity
Quasi
Partic
1985/92
Azucitrus
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2001
Banco Montevideo
0.00
9.00
9.00
0.00
0.00
9.00
9.00
0.00
1995
Consorcio Aerop.
1.87
0.00
4.00
2.73
1.87
0.00
4.00
2.73
1991
Granja Moro
1.78
0.75
0.00
0.00
1.78
0.75
0.00
0.00
1980/88/96
Surinvest
0.00
0.00
1.93
0.00
0.00
0.00
1.93
0.00
2001
UMontevideo
5.00
0.00
0.00
0.00
3.30
0.00
0.00
0.00
Total Portfolio:
8.65
9.75
14.93
2.73
6.95
9.75
14.93
2.73
Approvals Pending Commitment
FY Approval
Company
Loan
Equity
Quasi
Partic
Total Pending Commitment:
0.00
0.00
0.00
0.00
- 93 -

---

Annex 10: Country at a Glance
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Argentina

Latin
Upper-
POVERTY and SOCIAL

America
middle-
Argentina
& Carib.
income
Development diamond*
2000
Population, mid-year (millions)
37.0
516
647
Life expectancy
GNI per capita (Atlas method, US$)
7,470
3,680
4,620
GNI (Atlas method, US$ billions)
276.5
1,895
2,986
Average annual growth, 1994-00
Population (%)
1.3
1.6
1.3
Labor force (%)
2.1
2.3
2.0
GNI
Gross
per
primary
Most recent estimate (latest year available, 1994-00)
capita
enrollment
Poverty (% of population below national poverty line)
..
..
..
Urban population (% of total population)
90
75
76
Life expectancy at birth (years)
74
70
69
Infant mortality (per 1,000 live births)
18
30
28
Child malnutrition (% of children under 5)
2
9
..
Access to improved water source
Access to an improved water source (% of population)
79
85
87
Illiteracy (% of population age 15+)
3
12
10
Gross primary enrollment (% of school-age population)
111
113
107
Argentina
Male
111
..
106
Upper-middle-income group
Female
111
..
105
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
100.0
1980
1990
1999
2000
Economic ratios*
GDP (US$ billions)
77.0
141.4
283.3
285.0
Gross domestic investment/GDP
25.3
14.0
17.9
15.9
Trade
Exports of goods and services/GDP
5.1
10.4
9.8
10.8
Gross domestic savings/GDP
23.8
19.7
16.2
15.3
Gross national savings/GDP
22.8
15.4
13.7
12.7
Current account balance/GDP
-6.4
1.2
-4.2
-3.1
Domestic
Interest payments/GDP
1.7
1.6
3.0
3.5
Investment
savings
Total debt/GDP
35.3
44.0
51.5
51.4
Total debt service/exports
37.3
41.0
100.2
85.5
Present value of debt/GDP
..
..
54.5
..
Present value of debt/exports
..
..
455.3
..
Indebtedness
1980-90
1990-00
1999
2000
2000-04
(average annual growth)
GDP
-0.7
4.3
-3.4
-0.5
1.9
Argentina
GDP per capita
-2.1
3.0
-4.6
-1.7
0.2
Upper-middle-income group
Exports of goods and services
3.8
8.6
-1.4
2.0
5.7
STRUCTURE of the ECONOMY
1980
1990
1999
2000
Growth of investment and GDP (%)
(% of GDP)
20
Agriculture
6.4
8.1
4.6
4.8
Industry
41.2
36.0
27.6
27.6
10
Manufacturing
29.5
26.8
18.1
17.6
0
Services
52.4
55.9
67.7
67.7
95
96
97
98
99
00
-10
Private consumption
..
77.1
70.1
70.9
-20
General government consumption
..
3.1
13.7
13.8
GDI
GDP
Imports of goods and services
6.5
4.6
11.5
11.4
1980-90
1990-00
1999
2000
Growth of exports and imports (%)
(average annual growth)
Agriculture
0.7
3.4
1.6
-2.5
30
Industry
-1.3
3.8
-6.7
-3.2
20
Manufacturing
-0.8
2.8
-7.7
-3.0
10
Services
0.0
4.5
-1.5
0.5
0
95
96
97
98
99
00
Private consumption
..
2.8
-3.2
1.3
-10
General government consumption
..
1.8
0.8
-0.4
-20
Gross domestic investment
-5.2
7.3
-12.8
-8.6
Exports
Imports
Imports of goods and services
-5.8
15.4
-11.7
-0.5
Note: 2000 data are preliminary estimates.
* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will
be incomplete.
- 94 -

---

Argentina
PRICES and GOVERNMENT FINANCE
1980
1990
1999
2000
Inflation (%)
Domestic prices
(% change)
6
Consumer prices
100.8
2,314.0
-1.2
-0.8
4
Implicit GDP deflator
90.8
2,076.8
-1.9
1.1
2
Government finance
0
95
96
97
98
99
00
(% of GDP, includes current grants)
-2
Current revenue
8.1
14.4
19.7
19.7
-4
Current budget balance
3.1
-1.5
-1.5
-1.5
GDP deflator
CPI
Overall surplus/deficit
-2.5
-2.5
-2.6
-2.4
TRADE
1980
1990
1999
2000
Export and import levels (US$ mill.)
(US$ millions)
Total exports (fob)
..
12,488
23,315
26,244
40,000
Food
..
1,374
2,063
2,322
Meat
..
873
829
933
30,000
Manufactures
..
3,364
6,952
7,825
Total imports (cif)
..
4,197
25,538
25,157
20,000
Food
..
..
..
..
10,000
Fuel and energy
..
423
730
719
Capital goods
..
1,338
11,902
11,724
0
94
95
96
97
98
99
00
Export price index (1995=100)
..
..
80
88
Import price index (1995=100)
..
..
85
83
Exports
Imports
Terms of trade (1995=100)
..
..
94
106
BALANCE of PAYMENTS
1980
1990
1999
2000
Current account balance to GDP (%)
(US$ millions)
Exports of goods and services
9,893
14,727
27,836
31,005
0
Imports of goods and services
13,081
6,954
32,687
32,685
94
95
96
97
98
99
00
-1
Resource balance
-3,188
7,773
-4,851
-1,679
-2
Net income
-1,609
-6,203
-7,473
-7,517
Net current transfers
-101
71
379
287
-3
Current account balance
-4,898
1,641
-11,945
-8,909
-4
Financing items (net)
6,776
1,352
13,146
8,470
-5
Changes in net reserves
-1,878
-2,993
-1,201
439
-6
Memo:
Reserves including gold (US$ millions)
..
10,814
27,831
26,465
Conversion rate (DEC, local/US$)
4.99E-08
0.5
1.0
1.0
EXTERNAL DEBT and RESOURCE FLOWS
1980
1990
1999
2000
(US$ millions)
Composition of 2000 debt (US$ mill.)
Total debt outstanding and disbursed
27,157
62,232
145,994
146,395
IBRD
404
2,609
8,596
8,789
A: 8,789
IDA
0
0
0
0
G: 31,545
C: 5,056
Total debt service
4,182
6,158
27,900
26,500
D: 11,633
IBRD
71
414
982
1,239
E: 4,299
IDA
0
0
0
0
Composition of net resource flows
Official grants
2
21
6
6
Official creditors
58
456
1,538
1,957
Private creditors
6,038
-974
3,478
-4,204
Foreign direct investment
678
1,836
8,236
10,696
Portfolio equity
0
13
-112
15
F: 85,073
World Bank program
Commitments
27
0
132
441
A - IBRD
E - Bilateral
Disbursements
71
405
1,573
1,020
B - IDA
D - Other multilateral
F - Private
Principal repayments
34
233
445
538
C - IMF
G - Short-term
Net flows
37
172
1,128
482
Interest payments
37
182
537
701
Net transfers
0
-10
591
-219
Development Economics
9/13/01
- 95 -

---

Brazil

Latin
Upper-
POVERTY and SOCIAL

America
middle-
Brazil
& Carib.
income
Development diamond*
2000
Population, mid-year (millions)
170.1
516
647
Life expectancy
GNI per capita (Atlas method, US$)
3,590
3,680
4,620
GNI (Atlas method, US$ billions)
610.1
1,895
2,986
Average annual growth, 1994-00
Population (%)
1.3
1.6
1.3
Labor force (%)
1.9
2.3
2.0
GNI
Gross
per
primary
Most recent estimate (latest year available, 1994-00)
capita
enrollment
Poverty (% of population below national poverty line)
22
..
..
Urban population (% of total population)
81
75
76
Life expectancy at birth (years)
67
70
69
Infant mortality (per 1,000 live births)
32
30
28
Child malnutrition (% of children under 5)
6
9
..
Access to improved water source
Access to an improved water source (% of population)
87
85
87
Illiteracy (% of population age 15+)
15
12
10
Gross primary enrollment (% of school-age population)
125
113
107
Brazil
Male
..
..
106
Upper-middle-income group
Female
..
..
105
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
1980
1990
1999
2000
Economic ratios*
GDP (US$ billions)
235.0
465.0
529.4
595.5
Gross domestic investment/GDP
23.3
20.2
20.4
20.5
Trade
Exports of goods and services/GDP
9.1
8.2
10.6
10.9
Gross domestic savings/GDP
21.1
21.4
19.3
19.3
Gross national savings/GDP
17.8
18.9
16.1
..
Current account balance/GDP
-5.5
-0.8
-4.8
-4.1
Domestic
Interest payments/GDP
2.7
0.4
2.5
2.5
Investment
savings
Total debt/GDP
30.4
25.8
45.6
39.7
Total debt service/exports
63.4
22.5
112.3
77.9
Present value of debt/GDP
..
..
45.9
..
Present value of debt/exports
..
..
403.7
..
Indebtedness
1980-90
1990-00
1999
2000
2000-04
(average annual growth)
GDP
2.7
2.9
0.8
4.5
3.6
Brazil
GDP per capita
0.8
1.5
-0.5
3.2
2.3
Upper-middle-income group
Exports of goods and services
7.5
5.5
12.0
11.0
13.0
STRUCTURE of the ECONOMY
1980
1990
1999
2000
Growth of investment and GDP (%)
(% of GDP)
15
Agriculture
11.0
8.1
7.2
7.4
10
Industry
43.8
38.7
27.5
28.6
5
Manufacturing
33.5
..
23.1
24.0
0
Services
45.2
53.2
65.3
64.0
-5
95
96
97
98
99
00
Private consumption
69.7
59.3
61.8
62.5
-10
General government consumption
9.2
19.3
18.9
18.2
GDI
GDP
Imports of goods and services
11.3
7.0
11.7
12.1
1980-90
1990-00
1999
2000
Growth of exports and imports (%)
(average annual growth)
Agriculture
2.8
3.2
7.4
3.0
40
Industry
2.0
2.6
-1.6
5.0
Manufacturing
1.6
2.1
-0.7
..
20
Services
3.3
3.0
1.3
3.9
0
Private consumption
1.2
5.7
6.1
9.9
95
96
97
98
99
00
General government consumption
7.3
-1.7
-9.3
-5.4
-20
Gross domestic investment
3.3
3.4
-3.0
5.0
Exports
Imports
Imports of goods and services
0.5
11.9
-14.8
13.8
Note: 2000 data are preliminary estimates.
* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will
be incomplete.
- 96 -

---

Brazil
PRICES and GOVERNMENT FINANCE
1980
1990
1999
2000
Inflation (%)
Domestic prices
(% change)
2,500
Consumer prices
..
2,947.7
8.9
6.0
2,000
Implicit GDP deflator
87.3
2,509.5
4.3
8.5
1,500
1,000
Government finance
500
(% of GDP, includes current grants)
0
Current revenue
..
..
19.5
20.0
95
96
97
98
99
00
Current budget balance
..
..
0.4
1.0
GDP deflator
CPI
Overall surplus/deficit
..
..
-6.8
-3.2
TRADE
1980
1990
1999
2000
Export and import levels (US$ mill.)
(US$ millions)
Total exports (fob)
..
31,414
47,140
53,589
75,000
Coffee
..
2,656
2,746
3,048
Soybeans
..
2,854
1,593
2,188
50,000
Manufactures
..
19,624
35,312
41,027
Total imports (cif)
..
20,661
49,275
55,800
Food
..
1,379
1,655
1,507
25,000
Fuel and energy
..
4,354
4,258
6,362
Capital goods
..
5,932
13,570
13,593
0
94
95
96
97
98
99
00
Export price index (1995=100)
80
81
91
97
Import price index (1995=100)
65
74
113
118
Exports
Imports
Terms of trade (1995=100)
123
109
80
82
BALANCE of PAYMENTS
1980
1990
1999
2000
Current account balance to GDP (%)
(US$ millions)
Exports of goods and services
21,857
34,615
55,205
64,470
0
Imports of goods and services
27,788
26,708
63,443
72,741
94
95
96
97
98
99
00
-1
Resource balance
-5,931
7,907
-8,238
-8,271
-2
Net income
-7,044
-12,523
-18,848
-17,886
Net current transfers
42
834
1,689
1,521
-3
Current account balance
-12,933
-3,782
-25,397
-24,636
-4
Financing items (net)
8,990
-5,043
13,634
33,815
-5
Changes in net reserves
3,943
8,825
11,763
-9,179
-6
Memo:
Reserves including gold (US$ millions)
5,853
9,175
35,725
33,011
Conversion rate (DEC, local/US$)
1.92E-11
2.48E-5
1.8
1.8
EXTERNAL DEBT and RESOURCE FLOWS
1980
1990
1999
2000
(US$ millions)
Composition of 2000 debt (US$ mill.)
Total debt outstanding and disbursed
71,520 119,877
241,468
236,200
A: 7,377
IBRD
2,035
8,427
6,822
7,377
C: 1,768
IDA
0
0
0
0
G: 29,486
Total debt service
14,757
8,168
67,522
53,200
D: 48,358
IBRD
275
1,975
1,381
1,351
IDA
0
0
0
0
Composition of net resource flows
E: 9,932
Official grants
14
41
62
..
Official creditors
825
-633
660
-2,037
Private creditors
3,745
-427
-11,828
-32,675
Foreign direct investment
1,911
989
32,659
..
Portfolio equity
0
0
1,961
..
F: 139,279
World Bank program
Commitments
820
905
1,863
1,593
A - IBRD
E - Bilateral
Disbursements
343
788
1,533
1,692
B - IDA
D - Other multilateral
F - Private
Principal repayments
98
1,251
952
887
C - IMF
G - Short-term
Net flows
245
-463
580
805
Interest payments
177
725
428
464
Net transfers
68
-1,187
152
341
Development Economics
9/17/01
- 97 -

---

Paraguay

Latin
Lower-
POVERTY and SOCIAL

America
middle-
Paraguay
& Carib.
income
Development diamond*
2000
Population, mid-year (millions)
5.5
516
2,046
Life expectancy
GNI per capita (Atlas method, US$)
1,440
3,680
1,140
GNI (Atlas method, US$ billions)
7.9
1,895
2,327
Average annual growth, 1994-00
Population (%)
2.6
1.6
1.0
Labor force (%)
3.1
2.3
1.3
GNI
Gross
per
primary
Most recent estimate (latest year available, 1994-00)
capita
enrollment
Poverty (% of population below national poverty line)
..
..
..
Urban population (% of total population)
56
75
42
Life expectancy at birth (years)
70
70
69
Infant mortality (per 1,000 live births)
24
30
32
Child malnutrition (% of children under 5)
..
9
11
Access to improved water source
Access to an improved water source (% of population)
79
85
80
Illiteracy (% of population age 15+)
7
12
15
Gross primary enrollment (% of school-age population)
111
113
114
Paraguay
Male
112
..
116
Lower-middle-income group
Female
109
..
114
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
1980
1990
1999
2000
Economic ratios*
GDP (US$ billions)
4.6
5.3
7.7
7.5
Gross domestic investment/GDP
31.7
22.9
23.0
22.1
Trade
Exports of goods and services/GDP
15.3
33.2
23.0
20.4
Gross domestic savings/GDP
18.3
16.6
9.3
7.0
Gross national savings/GDP
19.2
19.7
11.9
9.8
Current account balance/GDP
-13.5
7.4
-0.8
-4.0
Domestic
Interest payments/GDP
0.8
1.5
0.9
1.0
Investment
savings
Total debt/GDP
20.1
40.0
32.5
36.2
Total debt service/exports
17.0
12.2
6.4
8.0
Present value of debt/GDP
..
..
31.0
..
Present value of debt/exports
..
..
65.7
..
Indebtedness
1980-90
1990-00
1999
2000
2000-04
(average annual growth)
GDP
2.5
2.2
0.5
-0.3
1.7
Paraguay
GDP per capita
-0.6
-0.4
-2.1
-2.8
-0.8
Lower-middle-income group
Exports of goods and services
11.5
-0.6
-16.9
-39.9
-2.4
STRUCTURE of the ECONOMY
1980
1990
1999
2000
Growth of investment and GDP (%)
(% of GDP)
10
Agriculture
28.6
27.8
21.9
20.6
Industry
27.4
25.2
26.0
27.6
5
Manufacturing
16.0
16.8
13.6
14.4
0
Services
43.9
47.0
52.1
51.8
95
96
97
98
99
00
-5
Private consumption
75.7
77.2
81.9
82.7
-10
General government consumption
6.0
6.2
8.8
10.3
GDI
GDP
Imports of goods and services
28.7
39.5
36.7
35.5
1980-90
1990-00
1999
2000
Growth of exports and imports (%)
(average annual growth)
Agriculture
3.6
6.6
0.5
-0.3
40
Industry
0.3
3.1
0.9
5.3
20
Manufacturing
4.0
0.6
-4.4
5.7
0
Services
3.1
-2.2
-2.9
0.5
-20
95
96
97
98
99
00
Private consumption
2.4
3.6
-4.6
3.5
-40
General government consumption
1.5
6.4
4.2
4.5
-60
Gross domestic investment
-0.8
0.2
-3.9
-4.3
Exports
Imports
Imports of goods and services
4.4
3.2
-26.7
-12.3
Note: 2000 data are preliminary estimates.
* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will
be incomplete.
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Paraguay
PRICES and GOVERNMENT FINANCE
1980
1990
1999
2000
Inflation (%)
Domestic prices
(% change)
25
Consumer prices
..
38.2
6.8
8.9
20
Implicit GDP deflator
16.7
36.3
2.5
8.5
15
10
Government finance
5
(% of GDP, includes current grants)
0
Current revenue
..
12.2
16.8
16.2
95
96
97
98
99
00
Current budget balance
..
3.5
2.1
0.2
GDP deflator
CPI
Overall surplus/deficit
..
2.9
-3.6
-4.6
TRADE
1980
1990
1999
2000
Export and import levels (US$ mill.)
(US$ millions)
Total exports (fob)
..
1,366
2,673
2,251
5,000
Soy products
..
267
307
286
4,000
Cotton
..
333
62
78
Manufactures
..
408
1,933
1,380
3,000
Total imports (cif)
..
1,636
3,042
2,837
2,000
Food
..
442
1,061
989
Fuel and energy
..
146
186
173
1,000
Capital goods
..
569
505
471
0
94
95
96
97
98
99
00
Export price index (1995=100)
..
..
..
..
Import price index (1995=100)
..
..
..
..
Exports
Imports
Terms of trade (1995=100)
..
..
..
..
BALANCE of PAYMENTS
1980
1990
1999
2000
Current account balance to GDP (%)
(US$ millions)
Exports of goods and services
701
2,514
3,267
2,801
0
Imports of goods and services
1,314
2,169
3,533
3,307
94
95
96
97
98
99
00
Resource balance
-613
345
-266
-506
-1
Net income
-4
2
31
32
-2
Net current transfers
0
43
171
175
-3
Current account balance
-618
390
-64
-299
-4
Financing items (net)
769
-170
180
101
Changes in net reserves
-151
-220
-117
198
-5
Memo:
Reserves including gold (US$ millions)
..
675
996
797
Conversion rate (DEC, local/US$)
126.0
1,229.8
3,119.1
3,486.4
EXTERNAL DEBT and RESOURCE FLOWS
1980
1990
1999
2000
(US$ millions)
Composition of 2000 debt (US$ mill.)
Total debt outstanding and disbursed
921
2,105
2,514
2,715
IBRD
80
279
182
197
A: 197
IDA
45
41
30
28
B: 28
G: 580
Total debt service
133
325
233
254
IBRD
7
65
32
29
IDA
1
1
2
2
Composition of net resource flows
D: 912
Official grants
10
7
0
0
Official creditors
38
-149
42
89
F: 526
Private creditors
94
-9
94
-18
Foreign direct investment
32
77
66
95
Portfolio equity
0
0
-21
3
E: 472
World Bank program
Commitments
31
0
0
0
A - IBRD
E - Bilateral
Disbursements
33
16
42
47
B - IDA
D - Other multilateral
F - Private
Principal repayments
2
41
25
20
C - IMF
G - Short-term
Net flows
31
-25
18
26
Interest payments
6
25
10
11
Net transfers
25
-50
8
16
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Development Economics
9/21/01

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Uruguay

Latin
Upper-
POVERTY and SOCIAL

America
middle-
Uruguay
& Carib.
income
Development diamond*
2000
Population, mid-year (millions)
3.3
516
647
Life expectancy
GNI per capita (Atlas method, US$)
6,000
3,680
4,620
GNI (Atlas method, US$ billions)
20.0
1,895
2,986
Average annual growth, 1994-00
Population (%)
0.7
1.6
1.3
Labor force (%)
1.2
2.3
2.0
GNI
Gross
per
primary
Most recent estimate (latest year available, 1994-00)
capita
enrollment
Poverty (% of population below national poverty line)
..
..
..
Urban population (% of total population)
91
75
76
Life expectancy at birth (years)
74
70
69
Infant mortality (per 1,000 live births)
15
30
28
Child malnutrition (% of children under 5)
..
9
..
Access to improved water source
Access to an improved water source (% of population)
98
85
87
Illiteracy (% of population age 15+)
2
12
10
Gross primary enrollment (% of school-age population)
109
113
107
Uruguay
Male
109
..
106
Upper-middle-income group
Female
108
..
105
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
1980
1990
1999
2000
Economic ratios*
GDP (US$ billions)
10.1
9.3
20.7
19.7
Gross domestic investment/GDP
17.3
12.2
15.1
13.9
Trade
Exports of goods and services/GDP
15.0
23.5
18.0
19.3
Gross domestic savings/GDP
11.7
17.6
13.9
12.5
Gross national savings/GDP
8.1
14.0
12.4
10.8
Current account balance/GDP
-7.0
1.8
-2.8
-2.4
Domestic
Interest payments/GDP
1.2
3.4
1.8
2.1
Investment
savings
Total debt/GDP
16.4
47.5
36.0
44.6
Total debt service/exports
18.8
40.8
25.3
30.2
Present value of debt/GDP
..
..
36.3
..
Present value of debt/exports
..
..
179.7
..
Indebtedness
1980-90
1990-00
1999
2000
2000-04
(average annual growth)
GDP
0.5
3.4
-2.8
-1.3
2.6
Uruguay
GDP per capita
-0.1
2.6
-3.6
-2.0
2.1
Upper-middle-income group
Exports of goods and services
3.9
5.9
-7.4
4.0
4.6
STRUCTURE of the ECONOMY
1980
1990
1999
2000
Growth of investment and GDP (%)
(% of GDP)
20
Agriculture
13.5
8.7
5.4
5.7
Industry
33.7
32.9
26.3
26.0
10
Manufacturing
25.9
26.5
16.0
16.1
0
Services
52.8
58.4
68.3
68.3
95
96
97
98
99
00
-10
Private consumption
75.8
70.3
73.1
74.5
-20
General government consumption
12.5
12.1
13.0
13.0
GDI
GDP
Imports of goods and services
20.6
18.1
19.3
20.7
1980-90
1990-00
1999
2000
Growth of exports and imports (%)
(average annual growth)
Agriculture
0.1
2.8
-7.5
-2.6
20
Industry
-0.2
1.1
-5.0
-2.1
Manufacturing
0.4
-0.1
-8.4
-2.4
10
Services
1.0
4.6
-1.1
-0.7
0
Private consumption
0.7
5.0
-1.5
-0.5
95
96
97
98
99
00
General government consumption
1.8
2.1
0.6
-3.5
-10
Gross domestic investment
-6.6
6.3
-9.8
-12.7
Exports
Imports
Imports of goods and services
0.0
9.8
-5.8
-0.9
Note: 2000 data are preliminary estimates.
* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will
be incomplete.
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Uruguay
PRICES and GOVERNMENT FINANCE
1980
1990
1999
2000
Inflation (%)
Domestic prices
(% change)
50
Consumer prices
..
111.4
5.6
4.8
40
Implicit GDP deflator
54.8
106.8
4.2
3.6
30
20
Government finance
10
(% of GDP, includes current grants)
0
Current revenue
..
16.0
19.4
19.1
95
96
97
98
99
00
Current budget balance
..
1.7
-1.4
-2.2
GDP deflator
CPI
Overall surplus/deficit
..
-0.1
-3.8
-4.0
TRADE
1980
1990
1999
2000
Export and import levels (US$ mill.)
(US$ millions)
Total exports (fob)
..
1,693
2,237
2,295
4,000
Meat
..
422
673
700
Vegetables
..
192
354
255
3,000
Manufactures
..
837
981
1,061
Total imports (cif)
..
1,343
3,357
3,466
2,000
Food
..
95
306
316
1,000
Fuel and energy
..
219
490
462
Capital goods
..
393
1,050
973
0
94
95
96
97
98
99
00
Export price index (1995=100)
..
105
88
90
Import price index (1995=100)
..
115
97
102
Exports
Imports
Terms of trade (1995=100)
..
91
90
89
BALANCE of PAYMENTS
1980
1990
1999
2000
Current account balance to GDP (%)
(US$ millions)
Exports of goods and services
1,526
2,159
3,530
3,680
0
Imports of goods and services
2,144
1,675
3,981
4,149
94
95
96
97
98
99
00
Resource balance
-618
483
-451
-469
-1
Net income
-100
-321
-191
-73
Net current transfers
9
8
70
66
Current account balance
-709
170
-572
-476
-2
Financing items (net)
827
-109
586
647
Changes in net reserves
-118
-61
-13
-171
-3
Memo:
Reserves including gold (US$ millions)
..
1,098
2,524
2,695
Conversion rate (DEC, local/US$)
9.10E-3
1.2
11.5
12.3
EXTERNAL DEBT and RESOURCE FLOWS
1980
1990
1999
2000
(US$ millions)
Composition of 2000 debt (US$ mill.)
Total debt outstanding and disbursed
1,660
4,415
7,447
8,796
IBRD
72
359
476
552
A: 552
IDA
0
0
0
0
C: 149
G: 1,917
Total debt service
299
987
1,059
1,313
IBRD
13
70
96
100
D: 1,346
IDA
0
0
0
0
Composition of net resource flows
E: 332
Official grants
0
0
0
0
Official creditors
37
104
252
136
Private creditors
190
-192
-112
856
Foreign direct investment
290
0
229
195
Portfolio equity
-7
108
128
376
F: 4,500
World Bank program
Commitments
74
63
93
108
A - IBRD
E - Bilateral
Disbursements
4
51
66
134
B - IDA
D - Other multilateral
F - Private
Principal repayments
6
43
63
58
C - IMF
G - Short-term
Net flows
-2
8
3
76
Interest payments
7
28
33
42
Net transfers
-9
-19
-30
35
Development Economics
9/21/01
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Additional
Annex 11
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Institutional Arrangements for Project Implementation
The figure below summarizes the institutional set-up for project implementation. In the following,
arrangements for (i) project management and coordination, (ii) project administration, and (iii)
(national) executing agencies are outlined.
Donors/Coop.
Steering
GEF/WB
Agencies
Committee
Coordination Group
General Secretariat/
Executing Agency
NPEU
NPEU
NPEU
NPEU
Argentina
Brazil
Paraguay
Uruguay
Steering Committee ­ Consejo Superior de Dirección del Proyecto
Coordination Group ­ Coordinación Colegiada
General Secretariat ­ Secretaría General del Proyecto Sistema Acuífero Guarani
Executing Agency ­ Organization of American States (OAS)
NPEU ­ National Project Executing Unit ­ Unidad Nacional de Ejecución del Proyecto
GEF/WB ­ Global Environment Facility ­ World Bank
Donors/Cooperating Agencies ­ includes IAEA and BGR. These and other agencies may be
invited to Steering Committee meetings.
- 102 -

---

1. Project Management and Coordination
The Organization of American States (OAS) will be the Executing Agency for the Grant and will
be responsible for Project Management through its Sustainable Development and Environment
Unit. A General Secretariat of the Guarani Aquifer System Project ("General Secretariat") will be
established in Montevideo, Uruguay, which will have the function of a project implementation
unit. This Secretariat will be staffed with a General Secretary (Project Coordinator), three
Technical Specialists, a Financial Administrator as well as support staff.
Project Management lies with the OAS through the General Secretariat and through supporting
OAS staff, including a procurement specialist, at Headquarters in Washington, D.C. and country
offices, especially the country office in Buenos Aires where the OAS Project Teamleader will be
based.
The General Secretary - and his staff - will have the function of day-to-day management of the
Project, in liaison with the OAS.
The Project Steering Committee will set the overall framework for the Project and will meet at
least twice a year to provide directions. It will be composed of three representatives for each
country who will be appointed by the National Executing Agency. These will represent the areas
of Water Resources, Foreign Affairs, and the Environment. The National Executing Agencies are
(i) Argentina - Ministerio de Infraestructura y Vivienda, Subsecretaría de Recursos Hídricos, (ii)
Brazil - Agência Nacional de Águas, (iii) Paraguay - Secretaría del Ambiente - Dirección General
de Protección y Conservación de Recursos Hídricos, (iv) Uruguay - Ministerio de Transportes y
Obras Públicas, Dirección Nacional de Hidrografía. The Project Steering Committee will have a
rotational chairmanship. The first chairmanship will be held by Paraguay.
Each Executing Agency will appoint a National Coordinator who will manage in-country
activities, in close collaboration with the General Secretariat.
The four National Coordinators will form a Coordination Group, which will work with the
General Secretariat to ensure smooth operations at the country level. Together with the General
Secretariat they will agree on periodical Operations Plans at the regional and at the country level.
They will be responsible to manage the National Project Executing Units (NPEUs).
The National Project Executing Units consist of stakeholders (national and subnational
governments, NGOs, academia, etc.) who provide advice to the project coordinator, help develop
Terms of Reference, participate in supervision of consultants, and disseminate information about
the project to their respective entities. They may also facilitate project work in their respective
entities. Each NPEU is organized according to needs as defined by the country. In the case of
Argentina and Brazil they will reflect their federal characteristics.
2. Project Administration
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---

Project Administration takes place through the General Secretariat and through the OAS. While
the General Secretariat has the function to carry out the work plan, develop all technical work,
organize work meetings, liaise with the countries and stakeholders, as well as with international
agencies, provide project monitoring reports, etc., the OAS has overall responsibility for this
work. In addition, the OAS is responsible for all project procurement and for management of all
financial funds provided through the GEF Grant, as described in Annex 6.
3. National Executing and Participating Agencies
The National Executing Agencies ensure the selection and participation of key representatives in
the Project Steering Committee. They appoint the National Coordinator and through the National
Coordinator, provide support to the General Secretariat, manage the NPEU, facilitate and support
in-country work and facilitate coordination between countries. The National Executing Agencies
are also responsible for providing counterpart financing.
Participating Agencies are those agencies in the countries, which participate (or in the future will
participate) in Guarani Aquifer Management. They participate in the project by providing access
to data and, where applicable, to their facilities, sending representatives to project meetings,
disseminating results, implementing monitoring activities when agreed, etc. Participating Agencies
have been defined by each country and a list is provided in the Project Implementation Plan.
National Executing Agencies, through their National Coordinator, are responsible for involving
Participating Agencies in order to ensure project sustainability and benefits through adequate
involvement and consultation. In the cases of Argentina and Brazil, this particularly relates to the
involvement of agencies at the provincial and state levels.
- 104 -

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Additional
Annex 12
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Sub-component 3d): Indigenous Peoples Strategy
I. INTRODUCTION
1. The Guarani Aquifer System, underlying parts of Argentina, Brazil, Paraguay and Uruguay, is a
strategic resource named in honor of the Guarani Indigenous Nation. The main threats to the
resource stem from uncontrolled abstraction, and pollution in the extraction and recharge areas.
Given that groundwater recharge is restricted, and that groundwater pollution is reversible only at
very high cost, if at all, there is considerable merit in protecting the Guarani Aquifer System for
current and future generations.
2. An important objective of the present project is to enhance the knowledge about the Guarani
Aquifer System, including its southwestern border areas, and its characteristics. In order to
achieve the objective of the project to support the four involved countries Argentina, Brazil,
Paraguay and Uruguay in developing a joint framework for the sustainable management of the
Guarani Aquifer System, one of the main steps is thus to enhance the technical and scientific
knowledge about it. The present project thus focuses on strongly on knowledge creation and
sharing as a prerequisite to developing a management system.
3. The project area covers the southwestern area of Brazil, the eastern part of Argentina,
Paraguay and the northeastern part of Uruguay. There are indigenous communities in the former
three countries, but not in Uruguayan territory.
4. This Indigenous Peoples Strategy (IPS), which is Sub-component 3d, has been designed based
on preparatory studies, consultations and discussions with key indigenous actors and institutions
and other related civil society entities.
5. Because there will be no physical project investments, indigenous peoples will not be directly
affected by project activities. On the other hand, the long-term goal of the project to create a
management framework for the Guarani Aquifer System may eventually have effects on their
rights and obligations, e.g. with regard to registration of new wells. It is thus important to note
that with respect to OD 4.20, the IPS of the Guarani Aquifer Project was not formulated to
mitigate actual or potential negative aspects of other project activities, but rather the IPS
constitutes one of the main mechanisms of the project for the effective and informed participation
of indigenous peoples.
6. Indigenous communities were specifically considered during project preparation following their
expressed wish to be informed and incorporated into the project activities. A consultation has
been specifically designed into part of the Public Participation Component to both inform
indigenous groups in the Guarani Aquifer System region and seek appropriate mechanisms to best
- 105 -

---

incorporate their views into the project. For this reason, the project will ensure that indigenous
groups are fully and adequately informed about project activities and that the knowledge about
the aquifer which will be acquired during the project will be shared with indigenous and ethnic
groups and communities.
II. INDIGENOUS GROUPS IN THE GUARANI AQUIFER PROJECT
7. The assessments conducted during project preparation basically coincide in the following:
·
Preparatory studies have shown that indigenous peoples live in the Guarani System area in
general and in case of the pilot projects, in the Paraguay area. There are no indigenous peoples in
the pilot areas of Argentina/Uruguay or Uruguay/Brazil or in the Ribeirão Preto pilot areas.
·
In all of the countries, the indigenous settlements and reserves are undergoing severe
problems of land demarcation and border identification. The expansion of agriculture, forestry and
mining activities are the main threats imposed from outside. Accompanying these physical
threats, indigenous peoples' original values and traditions are being lost in the face of a much
more complex network of social factors;
·
In general, due to land use tradition and subsistence cultures, the environment is more
protected in the reserves and the level of impact on water and soil is much lower than among
exogenous farmers;
·
In most regions of the Guarani Aquifer System, indigenous peoples do not use its waters
(see Table A12-1 below), but this needs to be investigated more in-depth during the project;
·
The perception of natural elements and especially of the cosmology and meaning of water
and groundwater is almost religious and beyond non-indigenous approaches;
·
In each country there is at least one institution that is responsible for mediating and
interacting directly with indigenous communities;
·
There are numerous non-profit, academic and religious organizations working with
indigenous communities at all levels;
·
In some areas there are strong political disputes among indigenous communities.
- 106 -

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Table A 12-1: Main Characteristics by Region/Country
Characteristics
Argentina
Brazil
Paraguay
Legal framework and
Law 23.302 Protección de
Indigenous traditional culture
The constitution recognizes the
institutional representation
Comunidades Aborigenes;
and behavior, faiths and
cultural plurality and rights of
Instituto Nacional de Asuntos
language are recognized by the
indigenous people in
Indígenas responsible; includes union which is responsible for
participating in the country's
indigenous representatives and
protecting them and guaranteeing economic, social, political and
representatives of the Provinces; their land and natural resources
cultural life;
Provincial Law similar to
possession (reserves);
INDI (Instituto Paraguayo del
national Paraguayan Law
FUNAI (Fundação Nacional do
Indigena)
(Province of Formosa);
Indio)
IICA (Indigenous Communities
Institute)
Indigenous ethnic groups in the
There are no indigenous groups
11 indigenous ethnic groups
4 indigenous ethnic groups of
Project area (number and
in the only area that has wells
and 103 indigenous reserve
the Guarani linguistic family:
number of reserves if
(Province of Entre Ríos).
areas in the States of Rio
Aché, Mbya, Pai-Tavyterá and
applicable)
During project implementation,
Grande do Sul (16 reserve
Avá Guaraní; communal
it will be investigated which
areas), Santa Catarina (4),
settlements with land
provinces the Guarani Aquifer
Paraná (16), São Paulo (4),
ownership.
System covers. In Formosa, for
Mato Grosso do Sul (51), Mato
instance, where the Aquifer is
Grosso (12).
believed to stretch, there are 3
indigenous ethnic groups of the
guaicurú linguistic family:
Toba, Pilagas and Wichi;
communal settlements with
land ownership. There is no use
of Guarani Aquifer water,
however.
Indigenous population and main To be defined in scoping study
Approximately 100.000;
Approximately 21.000 (Paí
populations according to groups during project implementation.
Guaranis are the most
Tavyterà - 8,026; Mbya -
numerous, followed by the
4,744, Avá Guaraní - 6,918;
Kaingangs (25.500). The
Aché - 639).
groups are Tupi-Guarani
(Guarani and Xetá), Jê and
Macro-Jê (Kaingang, Xokleng,
Xavante, Bororo, Ofayé and
Krenak), Aruak (Terena and
Pareci), Karib (Bakairi) and
Guaikuru (Kadiwéu).
Environmental features and main No information available regarding Besides the fact that in some areas Same characteristics as in
conflicts related to water Guarani Aquifer due to very
land-use patterns from the vicinity Brazil
resources
limited amount of wells (6), only in are replicated, indigenous areas are
one province (Entre Ríos)
in general more conserved;.
deforestation, organic
contamination of surface waters,
displacement due to dam
construction
Types of water supply
Surface waters, springs, shallow
Surface waters, springs, shallow
Surface waters, springs, shallow
large-diameter wells (Province of
and tube wells
large-diameter wells
Formosa)
Direct impacts on the aquifer
Very little (to be investigated
Little to moderate;
Very little;
and identified conflicts
through scoping study during
reserves are located in
reserves are located in
project implementation)
outcropping and/or recharge
outcropping and/or recharge
areas; some 100 wells drilled
areas
by FUNASA (National Health
Foundation) in unknown
conditions (possible
maintenance problems);
marketing of Guarani Aquifer
water intended in one locality
III. ACTIONS PLANNED FOR INDIGENOUS PEOPLES PARTICIPATION
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8. State institutions that address indigenous issues in each country will be the channels through
which the project will inform and consult. They will be invited to send their technicians to project
meetings regarding public participation as well as technical activities such as well inventory and
monitoring. With this information in hand, they will follow their usual proceedings in
communication strategies towards indigenous communities.
9. Given that indigenous peoples live in the project area in general and, specifically, in the
Paraguayan pilot area, the approach to ensure project participation is two-pronged:
(A)
For indigenous peoples who live in the aquifer region in general:
·
During the first two years of project implementation most of the project will deal with
studies for better understanding of the aquifer as well as providing the platform for the Guarani
Aquifer Strategic Action Plan. During this time, it would be misleading to directly address
indigenous peoples in the project area because there would be no direct activities in their areas
(for instance, wells are usually privately owned or by public water utilities). In this first phase, the
project will make sure, through its national coordinators and the Guarani Secretariat, to keep the
main official state organizations (e.g. FUNAI in Brazil, Instituto Nacional del Indígena in
Argentina, and Instituto Paraguayo del Indígena) informed about project activities such as
workshops and seminars so that they can ­ in turn ­ inform the indigenous community. In the case
of Brazil, direct communication with indigenous NGOs and communities, started during project
preparation, will be continued and deepened.
·
In addition, a scoping study will be carried out in Year 2 of the project, which will expand
the information acquired during project preparation, in particular with regard to indigenous water
rights and natural resources management rights and obligations. This study will be carried out in a
participatory fashion, including fieldwork and direct interaction with indigenous peoples.
·
In Year 3, when first project results as well as first proposals for institutional frameworks
are available, direct consultations through workshops and training will be carried out with
representative indigenous groups and organizations. This will ensure that throughout the project
indigenous perspectives are taken into account, with increasing intensity once substantive
discussions can take place.
·
In addition, indigenous organizations will be able to participate in the Guarani Citizen's
Fund and apply for funding for community level projects (Component 3 c). This information will
be passed on directly to their liaison organizations, as well as indigenous NGOs that have been
consulted with during project preparation.
(B)
For indigenous peoples living in the Paraguayan pilot area:
·
This pilot will focus, in the first two years, on data gathering and modeling of the aquifer
and the recharge area in the western part of Paraguay. At the same time, an in-depth social
assessment will be undertaken in the area, which will explicitly include a focus on indigenous
groups. This will provide the basis for appropriately involving these groups once active steps for
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aquifer management will be undertaken in this pilot area. As mentioned in Annexes 2 and 14,
these activities are not as yet fully defined due to the lack of data regarding aquifer vulnerability in
the area due to recharge and possible pollution patterns. Any involvement of the indigenous
people in the area will have to take into account the results of the hyrogeological and modeling
studies. The involvement will include consultations about aquifer management activities, any legal
implications, training, as well as provision of material about the aquifer in local indigenous
languages.
IV. INSTITUTIONAL ARRANGEMENTS
Both the General Secretariat and the National Project Executing Units will play a role in
implementing this subcomponent. The General Secretariat will develop general Terms of
Reference for the studies and social assessments (one professional in the Secretariat will be
specialized on public participation and social issues). Given the diversity of indigenous groups in
the three countries, the National Coordinators ­ and the NPEUs ­ will detail the Terms of
Reference for their respective countries and will also accompany the studies. They will also
constitute the main liaison for in-country relationships with the respective indigenous
organizations, NGOs, etc.
V. BUDGET
Activity
Cost (US$)
(A) General Guarani
Information Dissemination
40,000
Aquifer System Area
Scoping Study
20,000
Workshops, Training and Direct Consultations
60,000
Translation of Documents and Dissemination
20,000
(B) Paraguay Pilot Area
Extensive Social Assessment in Paraguay Pilot
30,000
Workshops, Training and Direct Consultations
80,000
Translation of Documents and Dissemination
10,000
Total
210,000
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Additional
Annex 13
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Root Cause Analysis
1. Background. The Guarani Aquifer System is one of the largest groundwater reservoirs in the
world. It is located under the four MERCOSUR countries: Argentina, Brazil, Paraguay and
Uruguay. The Guarani Aquifer System extends from the central-west region of Brazil into
Paraguay and the southeastern and southern regions of Brazil, and into northeastern Argentina
and central and western Uruguay. The Guarani Aquifer System has an estimated total surface area
of approximately 1.2 million square kilometers (839,800 km2 in Brazil, 225,500 km2 in Argentina,
71,700 km2 in Paraguay, and 45,000 km2 in Uruguay). The portion within Brazil encompasses
about two-thirds of the total areal extent of the System, and included portions of eight Brazilian
states--an area equal to that of England, France and Spain combined. An estimated fifteen million
people live within the Aquifer's area of surface influence. (See area maps).
2. Issues. Legal and regulatory mechanisms for the management of groundwater resources are
lacking throughout the MERCOSUR region. Both in Argentina and Brazil, for instance,
significant pollution of shallow groundwater resources is occurring, although, due to its
significant average depth, the Guarani Aquifer System is not significantly affected by this type of
degradation. However, in areas where the Guarani Aquifer System is close to the land surface,
there are pollution threats posed by the use of the Guarani Aquifer System waters in irrigation
schemes and potential leaking of agrochemicals in highly mechanized intensive agriculture areas.
In addition, it is being potentially overdrafted with consequent negative impacts on its quality.
The Guarani Aquifer System is a strategic water resource within the MERCOSUR region. It can
be preserved if adequately protected and managed. The main threat to the resource stems from
uncontrolled pollution in extraction and recharge areas. Given that groundwater pollution is
reversible only at very high costs, if at all, there is considerable merit in protecting the Guarani
Aquifer System for current and future generations.
3. Problems and Symptoms. The Guarani Aquifer System is a clear example of an international
(transfronterizo) waterbody threatened by environmental degradation through pollution, as
defined and included in the GEF Operational Program Number 8. In the absence of a strategic
intervention supported by the GEF, the likelihood of "business-as-usual" prevailing in the four
countries is high. At the aquifer's current rate of use, and considering the growing use of
groundwater for human consumption, it is easy to foresee an increasing threat of pollution in the
not too distant future. The uncontrolled use of the Guarani Aquifer System, without rules or
regulation, can alter its status from that of a strategic reserve of drinking water for the population
in portions of Argentina, Brazil, Paraguay and Uruguay, to that of a degraded waterbody that is
the source of conflict among the countries. If nothing is done, the future of this underground
treasure could be the same as that of other aquifers that have tended to become both polluted and
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over-exploited, at least in certain areas. The global benefit of the proposed project is in terms of
the preservation of this transboundary resource for current and future generations. In the specific
case of the Guarani Aquifer System, there is the opportunity to exploit the advantages of
preventive activity. The project would ensure that, in the face of increasing scarcity and pollution
of surface water sources in the beneficiary countries, this resource will be managed today so as to
be available as a strategic reserve when needed in the future. An important issue to be considered
in this regard is the fact that an international legal framework for the management of
transboundary groundwater resources currently does not exist.
To this end, it should be noted that the World Bank, for example, does not have a specific policy
on groundwater resources. This issue is being addressed in the ongoing evaluation of the World
Bank Water Resources Policy Paper of 1993. It is generally recognized that transboundary
groundwater issues need to be addressed, as projects are often proposed and implemented in areas
where a situation of scarcity and competition for groundwater resources already exists (e.g., in
North Africa and the Middle East). In the case of the Guarani Aquifer System of South America,
the World Bank, through the GEF, could make a significant contribution to shaping an
institutional framework regarding transboundary groundwaters that could serve as a replicable
model in other countries and regions. In addition, the experience derived from this project would
be expected to contribute to GEF and World Bank policy with regard to transboundary
groundwater issues.
3.1 Problems related to poorly quantified environmental impacts. As noted above, the actual
configuration and extent of the Guarani Aquifer System remains largely unknown.
Notwithstanding, problems related to the contamination of portions of the groundwater reservoir
are known to exist, particularly in those areas where the aquifer is at or near the land surface. In
addition, in those areas where the aquifer is being heavily utilized for water supply purposes,
localized problems with overdrafting of the water resource are presumed to exist, with
concomitant potential impacts on economic activities and surface ecosystems that are intimately
linked with the groundwater system.
3.2 Problems related to stakeholder involvement. Problems related to stakeholder involvement
historically have been related to the utilization of groundwater as an alternative water source for
human economic activities, especially in areas where surface water resources are lacking or
contaminated from human activities. As noted above, the Guarani Aquifer System is viewed by
the countries as a reserve of potable freshwater to be utilized primarily for the future economic
development of the basin countries. Notwithstanding, concerns have been identified within the
basin with respect to the utilization of the waters of the Guarani Aquifer System to support
tourism, particularly in the vicinity of western Uruguay and northeastern Argentina. Such
concerns impact the sustainable utilization of the resources, and indicate a need to sensitize
stakeholders with respect to the nature, attributes, behavior, and hydrology of the Guarani
Aquifer System.
3.3 Problems related to economic development. Problems related to economic development
include the lack of appropriate regulations governing the exploitation of groundwater resources
for human purposes. Because of the strategic nature of the Guarani Aquifer System within the
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context of the MERCOSUR region, the need to develop an appropriate framework within which
to support sustainable economic activities, including both current uses and potential future uses of
the Guarani Aquifer System, forms an important issue to be addressed by this project. Such
concerns are best addressed in a sectoral context, with the participation of key stakeholders.
3.4 Problems related to institutions, human resources, and the lack of a holistic
management approach. Problems related to institutions and human resources include the lack
of a comprehensive framework of data acquisition and data-sharing within the Guarani Aquifer
System region. This lack contributes to difficulties in developing and implementing an appropriate
legal and regulatory framework within which to manage the resources of the Guarani Aquifer
System. Related to the lack of institutional capacity are emerging problems related to the lack of
authority to control environmental problems, and fragmented and locally focused jurisdictions that
have failed to bring a comprehensive and cohesive approach to water management in the Guarani
Aquifer System region. Further, some management and development-related actions are
fragmented among agencies and between local jurisdictions. As a consequence, potential problems
relate to the lack of a unified vision of the Guarani Aquifer System as an integrated whole are
likely to occur in the absence of further interventions in the region. Potential problems include
inter-sectoral conflicts over water usage, competing rather than complementary demands for
water, and a piecemeal approach to water resources development in the basin.
3.5 Problems of water quality. Problems related to water quality include localized
bacteriological contamination and contamination by synthetic organic (agro-) chemicals. These
problems are currently localized to specific areas of the Guarani Aquifer System region, especially
with respect to those wells that lack effective casings.
3.6 Problems of water quantity. Problems related to water quantity are highly localized within
the Guarani Aquifer System, and are related to localized overdrafting of the resource.
4. Root Causes. Despite the apparent proliferation of problems in the Guarani Aquifer System
region, there would appear to be relatively few root causes that contribute to the majority of the
potential problems likely to be observed or to occur in the future in the absence of further
interventions to protect the resource. The root causes of existing and potential problems will be
identified during this project.
4.1 Anthropogenic causes. People almost exclusively have the potential to degrade the Guarani
Aquifer System. Although increased economic development in the region has succeeded in
improving the quality of life for many of the citizens of the region (as intended), rates of
exploitation of the natural resource base have increased. In the first instance, the redistribution of
population in the region has led to increased urbanization, which in turn has the potential to
contribute untreated human wastes and other contaminants to the system. These populations
have also created an increased demand for water and food, both of which affect the potential for
overdrafting the Aquifer--the water being used primarily for potable purposes. Superimposed on
these causative factors are modifications of the natural hydrological regime caused by the
imposition of impervious surfaces on recharge areas, and modifications affecting natural discharge
areas of the Guarani Aquifer System. In addition, emerging demands for "clean" energy for use by
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the people and industries of the basin constitute an emerging challenge related to the extraction
and disposal of thermal waters. Currently, many of the potential impacts are highly localized, and
there is an opportunity to put into place mechanisms to mitigate and manage many of these
threats.
4.2 Legal and institutional causes. While human land use activities have the potential to
contribute significantly to the potential degradation of the Guarani Aquifer System, legal and
institutional shortcomings may exacerbate these problems by failing to control or regulate human
actions in the area. Existing mechanisms fail to view the Aquifer as a unit, in which actions taken
at specific sites have a cumulative effect throughout the system. While the consequences of such
fragmented institutional mechanisms are currently quite minor, should the situation not be
remedied, substantial and costly actions may be needed in the future to overcome this lack of
regulation, and lack of a holistic approach to ecosystem and economic development.
5. Actions Identified to Address Root Causes. To help in overcoming the historical inertia
inherent in the causative factors identified above, emphasis in project design has been given to
those actions which address root causes that can best be humanly managed; i.e., those
anthropogenic causes and legal and institutional causes that can be modified through planning and
subsequent implementation of corrective actions. Natural root causes generally cannot be
effectively controlled by human actions and hence are of lesser importance from a groundwater
management perspective (although knowledge of these causes is an essential starting point from
which to implement interventions to address human and institutional causes). The following
actions have been proposed to address the human causative factors of potential environmental
degradation of the Guarani Aquifer System.
5.1 Acquisition of basic scientific information and dissemination of knowledge. Project
activities have been developed to acquire and disseminate supplementary baseline information to
support determination of root causes (Components I and II), and investigate alternative courses of
action to ensure sustainable use practices (Component V). In addition, a further group of
activities has been proposed as a means of synthesizing and disseminating information gathered
through diagnostic studies. These include, inter alia, activities which demonstrate ways in which
citizens can contribute to the protection of community water resources, which address the need
for public informational programming to enhance citizen participation in the decision-making
process, and which train community-based extension agents to disseminate information on issues
and mitigation measures to citizens (Component III).
5.2 Development of a holistic institutional management framework. Project activities have
been developed to provide an integrated management framework within which groundwater
protection and management activities can be identified and carried out (Component II). Project
activities in this category include, inter alia, activities which address the needs to harmonize
technical approaches for data acquisition and share information within the Guarani Aquifer
System region. These activities also encompass the synthesis and integration of the strategic
elements of the foregoing project activities in the SAP, or Strategic Action Program.
5.3 Support to groundwater management and regulatory agencies. Project activities have
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been developed to provide directed support to create and strengthen the operational capabilities
of institutions, committees, and related civic organizations within the Guarani Aquifer System
region. These activities include, inter alia, activities which promote the establishment of a
framework to promote stakeholder involvement and participation (Component III), and refine and
strengthen the role of the existing agencies within the basin through twinning and other capacity
building activities (Component II).
5.4 Assessment of emerging concerns. Finally, project activities have been developed to
provide a thorough consideration of the use of the Aquifer for geothermal energy production, an
emerging issue that is related to human use of the Guarani Aquifer System and its water reserves
(Component VI). These activities will inform decisions relating to the potential future
development and use of the Guarani Aquifer System for human purposes, including their
economic, technical, and environmental dimensions.
6. Concluding remarks. Significant progress has been made in the definition of issues and
problems (and their root causes in some instances) within the Guarani Aquifer System region
during the project preparation phase. Work proposed under the GEF International Waters focal
area builds on this progress in seeking to extend region-wide actions to the local community. This
work is predicated upon the principles of civic involvement, public participation, and responsible
governmental action at all levels of government, and embodies a comprehensive program of
research, demonstration projects, and information dissemination designed to identify a framework
for subsequent preventive and remedial measures and management actions that will result in the
sustainable economic development of this region.
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Additional
Annex 14
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Strategic Action Program
1.
The GEF Process. The GEF International Waters (IW) Projects often follow a logical
sequence of diagnosis and analysis, culminating in the preparation of an agreed program of
strategic actions to address common transboundary issues of concern. To this end, GEF IW
projects often begin with the GEF Implementing Agencies assisting the cooperating countries in
undertaking strategic work that focuses on joint fact-finding. Consistent with the Operation
Strategy (OP), the joint fact-finding encourages collaborating countries to institute interministerial
technical teams to assemble information on water-related problems and conflicts in the basin, and
to share this information with counterparts from other countries within the multinational basin.
Such information forms the basis for defining and quantifying shared, transboundary concerns.
Such concerns are documented in a Transboundary Diagnostic Analysis (TDA) that contains the
facts of the actual or likely future issues of concern, conflicts, and problems. These facts and the
associated diagnostic analysis facilitate identification of the root causes of the concerns, conflicts,
and problems, and enables actions to resolve shared issues of concern. A key element in
developing actions to resolve water-related conflicts, disputes, and problems is the involvement of
stakeholders; the principal actors involved in water use and management having been identified as
an element of the TDA. This collaborative, factual analysis is essential to the process of
determining priorities for action, and is the first step in formulating a Strategic Program of
Actions (SAP) designed to address the root causes of the concerns in an effective and
collaborative manner. The TDA-SAP process has been adopted by the GEF Council as the basis
for GEF IW projects.
2.
Transboundary Diagnostic Analysis. The process of developing the TDA enables
countries to learn how to exchange information and work together. Interministerial committees
often are established in each country to assemble and provide factual information on the
country-portion of shared waterbodies. By reviewing and analyzing the data and information
provided by each country, the transboundary nature, magnitude, and significance of water quality,
biological, habitat or other land use-related conflicts, degradation or threats can be determined
and prioritized. This review and analysis provides an objective basis for the countries to jointly
assign relative degrees of concern to the issues identified, and separate those issues that are of
joint concern from those that are of national concern. In addition, the root causes of the conflicts
or degradation, and relevant social issues, can be identified. This analysis will also enable the
identification of key stakeholders and communities. While social and societal concerns are
identified and quantified to the extent possible, the TDA is intended to be a technical document,
prepared by the scientific community within the countries participating in the GEF IW project.
3.
The TDA process provides the opportunity for the countries to identify and understand
the linkages between problems and their root causes. By categorizing these causes within specific
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economic sectors, this analysis permits the active participation and engagement of key
stakeholders. This enables the preparation of holistic, comprehensive, cost-effective solutions for
complex transboundary problems. It also enables these problems to be defined in terms of
manageable elements, linked to specific and identifiable geographic localities, or "hot spots", that
can be readily prioritized in terms of an agreed system of prioritization developed by the
collaborating countries.
4.
Strategic Action Program. The resulting actions required to address priority
transboundary issues of concern, identified through the TDA process, are further developed and
articulated within the Strategic Action Program. This program sets out a series of agreed actions
needed to minimize or mitigate identified water quality, biological, habitat or other land
use-related conflicts, degradation or threats within specific economic sectors and in specific
geographic locations. These actions generally include specific policy, legal, and institutional
actions, reforms and investments on a multicountry and national basis. These specific actions
generally are developed at the country level, often through the interministerial committees with
the active participation of stakeholders at the national and subnational levels, that are
subsequently compiled and agreed at the multicountry level. In most cases, the development of
multicountry strategic action programs complement specific action plans developed by the
collaborating countries. These latter plans, individual national action plans (NAPs), form the
national commitment of the countries to the implementation of strategic actions necessary to bring
about the sustainable development and utilization of shared, transboundary resources. Such
country-level actions, in turn, may be eligible for additional GEF assistance in the implementation
of those additional, or incremental, actions necessary to give effect to the agreed transboundary
benefits identified in the SAP. These incremental costs reflect the various states of economic
development within the collaborating countries, and serve as the basis for GEF IW
implementation projects.
5.
Enabling Activity. In essence, this multicountry process of issue identification,
quantification, prioritization, and action planning constitute the equivalent of the "enabling
activities" identified within the other GEF focal areas. Enabling activities are those fundamental
steps that must be taken in order for collaborating countries to address priority concerns
established by the conventions. To this end, the SAP forms an important and essential step in
identifying country-driven commitments to action that may reduce the risk of failure of
subsequent GEF interventions that assist in the implementation of country-driven actions.
6.
Monitoring and Evaluation. A final step in the GEF process is that of monitoring of
project implementation, which allows project management to take appropriate corrective actions
during the course of the conduct of project activities, and evaluation, which measures project
performance, efficiency, and impact against pre-determined milestones or indicators. Evaluation
indicators are generally set forth in the Logical Framework as a part of project design.
7.
Guarani Aquifer System Project. As noted previously, the primary outcome of the
project will be an agreed Strategic Action Program, consistent with the GEF process outlined
above. This program will be based upon a sound technical and scientific process of data
acquisition, sharing, and analysis, setting forth issues of transboundary concern. To this end, an
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operational system of data acquisition and data-sharing is an integral part of the Guarani
Project--contained within Components I and II of the proposed GEF IW project. Because of the
close linkage between the technical analysis (TDA) and the resultant priority, strategic actions
necessary to address the root causes of agreed multicountry concerns, the identification of
regionally-appropriate, cost-effective mitigation and management measures (Component V),
acceptable to basin communities and key stakeholders (see Component III), also form critical
elements of the Guarani Aquifer System project. In order to ensure the sustainability of these
management and mitigation measures, and data acquisition and sharing mechanisms, the Guarani
Project also includes institutional strengthening and capacity building (Component IV) as
important activities within the project framework. Finally, the proposed project activities also
recognize emerging issues related to the Guarani Aquifer System, and specific investigations with
respect to the potential development of the Aquifer for geothermal energy, are also included
within the framework of the project (Component VI). All of these activities contribute to the
development of a sustainable multicountry framework for the sustainable management and
development of the Guarani Aquifer System.
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Additional
Annex 15
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Public Involvement Plan Summary
1. The formulation of the proposal for the Environmental Protection and Sustainable
Development of the Integrated Management of the Guarani Aquifer System, including its
proposed GEF components, has involved extensive and broad-based participation by
representatives of the municipal/departmental, state/provincial, and national/federal governments,
academic and research institutions, private sector representatives and nongovernmental
organizations. The participation process was facilitated by a series of consultative workshops,
conducted in Foz do Iguaçu (Brazil) during January 2000, Santa Fe (Argentina) during July 2000,
Asunción (Paraguay) during November 2000, Montevideo (Uruguay) during March and April
2001, Asunción during May 2001, and Salto (Uruguay) during May 2001. In addition, a number
of focus group sessions were held to solicit sectoral input from NGOs, in Garopaba and Caxambú
(Brazil) during November of 2000 and 2001, and in Rio Grande do Sul (Brazil) during May 2001;
from the private sector in Florianópolis during May 2001; and, from the indigenous peoples
groups in Brazil (Curitiba) during May 2001 and in Paraguay during June 2001.
2. Approximately 200 persons representing more than 100 institutions, government agencies, and
NGOs, participated in the public meetings and provided inputs in drafting this proposal, many of
which are expected to participate in the implementation of the project.
3. A list of those institutions that participated in the public meetings convened prior to the
preparation of this project document, and which are expected to participate in project
implementation as well as subsequent public meetings, is presented below. Governmental
organizations are categorized as national/federal or as provincial/state government agencies.
Nongovernmental organizations and other governmental bodies are also listed, including state-
(Brazil) and provincial- (Argentina) level governmental agencies. Where the participating
organizations are known by an acronym, the acronym is also shown.
4. NATIONAL AND FEDERAL GOVERNMENTAL ORGANIZATIONS
Argentina
·
Ministerio de Relaciones Exteriores y Culto
·
Subsecretaría de Recursos Hídricos -Sistema Nacional de Información - SNIH/SRH
·
Secretaría de Desarrollo Sustentable y Política Ambiental- SDSPA
·
Instituto Nacional del Agua y del Ambiente - INA
Brazil
·
Ministério do Meio Ambiente - MMA
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-Secretaria de Recursos Hídricos ­ SRH
-Secretaria Executiva ­ SECEX
-Secretaria de Qualidade Ambiental nos Assentamentos Humanos ­ SQA
-Assessoria Especial para Assuntos Internacionais
-Agência Nacional de Águas ­ ANA
-Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis ­ IBAMA
·
Ministério de Minas e Energia

-Departamento Nacional de Produção Mineral ­ DNPM
-Companhia de Pesquisa de Recursos Minerais ­ CPRM
-Secretaria de Energia
·
Ministério da Agricultura
-Secretaria de Desenvolvimento Rural
·
Ministério da Integração Nacional ­ MI
-Secretaria de Programas Regionais Integrados
·
Ministério da Saúde ­ MS
-Agência Nacional de Vigilância Sanitária - ANVISA
-Fundação Nacional da Saúde ­ FUNASA
·
Ministério das Relações Exteriores ­ MRE
-Divisão da América Meridional I- DAM I
-Divisão do Meio Ambiente ­ DEMA
·
Ministério do Planejamento, Orçamento e Gestão
-Secretaria de Assuntos Internacionais- SEAIN
·
Ministério da Ciência e Tecnologia - MCT
Comissão Nacional de Energia Nuclear - CENEN
·
Presidência da República
-Secretaria de Acompanhamento e Estudos Institucionais da­ SAEI/GSI
-Agência Brasileira de Inteligência - ABIN
·
Fundação Nacional do Índio ­ FUNAI
·
Caixa Econômica Federal ­ CEF
Paraguay
·
Secretaría Medio Ambiente - SEAM
·
Secretaría Técnica de Planificación - STP
·
Ministerio de Salud Pública y Bienestar Social- SENASA - Servicio Nacional de
Saneamiento Ambiental
·
Ministerio de Obras Públicas y Comunicaciones ( M.O.P.C.) ­ Viceministerio de Minas y
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Energía
·
Ministerio de Relaciones Exteriores
·
Cooperativa Nacional de Aguas y Saneamiento - CORPOSANA
·
Secretaría del Ambiente - Proyecto Saro - Sistema Ambiental de la Región Oriental
·
Programa Regional. Piloto Uft
·
Servicio Geológico Geotécnico
·
Ente Binacional Yaciretá-Itaipu
Uruguay
·
Ministerio de Relaciones Exteriores
·
Ministerio de Transporte y Obras Públicas - Dirección Nacional de Hidrografía ­ MTOP
-DNH
·
Ministerio de Vivienda, Ordenamiento Territorial y Medio Ambiente - Dirección Nacional
de Medio Ambiente ­ MVOTMA-DINAMA
·
Ministerio de Ganadería Agricultura y Pesca ­ Programa Prenader
·
Ministerio de Industria, Energía y Minería - Dirección Nacional de Minería y
Geología -DINAMIGE
·
Obras Sanitarias del Estado ­ OSE
5. PROVINCIAL AND STATE GOVERNMENTAL ORGANIZATIONS
Argentina
·
Dirección Provincial de Obras Hidráulicas de Santa Fé - SPAR
·
Dirección de Hidráulica Provincia de Entre Ríos - Ministerio de Obras Públicas
·
MOSRV
·
Administración Provincial del Agua - APA - Provincia del Chaco
·
Instituto Misionero de Agua y Saneamiento - IMAS - Provincia de Misiones
Brazil
·
Agência Goiana de Meio Ambiente e Recursos Hídricos
·
Fundação Ecológica de Mineiros ­ FEMAS
·
Fundação Estadual do Meio Ambiente de Mato Grosso ­FEMA
·
Companhia Matogrossense de Mineração ­ METAMAT
·
Companhia de Saneamento do Estado do Mato Grosso ­ SANEMAT
·
Instituto de Planejamento , de Ciência e Tecnologia ­ IPLAN
·
Fórum Permanente de Meio Ambiente e Desenvolvimento Sustentável do Mato Grosso
do Sul ­ FORMADS
·
Conselho de Desenvolvimento e Integração ­ COSESUL/MS
·
Centro de Desenvolvimento de Tecnologia Nuclear ­ CDTN
·
Instituto Mineiro de Gestão das Águas ­ IGAM
·
Companhia de Saneamento do Estado de Minas Gerais ­ COPASA
·
Fundação Centro Tecnológico de Minas Gerais ­ CETEC
·
Secretaria de Estado de Meio-Ambiente e Recursos Hídricos do Paraná ­ SEMA
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·
Superintendência de Desenvolvimento de Recursos Hídricos do Paraná ­ SUDERHSA
·
Secretaria de Estado de Meio-Ambiente ­ SEMA- Rio Grande do Sul
·
Companhia Riograndense de Saneamento ­ CORSAN
·
Secretaria de Estado de Coordenação e Planejamento- Rio Grande do Sul
·
Secretaria de Estado de Recursos Hídricos, Saneamento e Obras ­ SRHSO
·
Secretaria de Estado de Meio Ambiente, Coordenadoria de Planejamento Ambiental-
CPLA/SMA
·
Instituto Florestal de São Paulo - IF
·
Instituto Geológico de São Paulo ­ IG
·
Instituto de Pesquisas Tecnológicas ­ IPT
·
SABESP ­ Companhia de Saneamento Básico de São Paulo
·
Secretaria de Estado do Desenvolvimento Urbano e Meio Ambiente do Estado de Santa
Catarina-SDM
·
Secretaria de Estado da Fazenda- Santa Catarina
·
Secretaria de Obras Públicas e Saneamento ­ SOPS/RS
·
Secretaria de Estado de Planejamento e Coordenação Geral - SEPL/CCPG
·
Companhia de Tecnologia de Saneamento Ambiental ­ CETESB
·
Departamento de Águas e Energia Elétrica ­ DAEE
·
Secretaria de Estado do Desenvolvimento Econômico e Integração ao MERCOSUL, RS
·
Secretaria de Estado do Meio Ambiente do Mato Grosso do Sul
·
Empresa de Saneamento do Estado do Mato Grosso do Sul ­ SANESUL
·
Secretaria de Estado do Meio Ambiente e Desenvolvimento Sustentável­ SEMAD, MG
·
Agência Goiania de Desenvolvimento Mineral e Industrial - AGIM
·
Companhia de Pesquisa de Recursos Minerais ­ CPRM, Superintendência Regional de
Goiás
·
Saneamento de Goiás S.A ­ SANEAGO
·
Delegacia Federal de Agricultura ­ DFA/MS
·
Fundação de Apoio e Pesquisa de Ensino Superior ­ FAPEC
·
Instituto de Meio Ambiente Pantanal
·
Serviço de Patrimônio Indígena ­ FUNAI/MS
·
Companhia de Pesquisas e Recursos Minerais ­ CPRM, Superintendência Regional
de Belo Horizonte
·
Companhia Mineradora de Minas Gerais ­ COMIG
·
Secretaria de Estado de Meio-Ambiente e Recursos Hídricos (MG)
·
Secretaria de Estado de Planejamento e Coordenação (MG)
·
Minerais do Paraná S.A ­ MINEROPAR
·
Companhia de Pesquisas e Recursos Minerais ­ CPRM, Superintendência Regional do
Rio Grande do Sul
·
Instituto Brasileiro do Meio Ambiente e dos Recursos Renováveis ­ IBAMA, Regional
Rio Grande do Sul
·
Promotoria de Justiça de Caxias do Sul
·
Companhia de Pesquisas e Recursos Minerais ­ CPRM, Superintendência Regional de
São Paulo
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·
Comitê de Bacia Hidrográfica do Alto Tietê ­ CBH-AT
·
Comitê de Bacia Hidrográfica ­ CBH ­ TJ
·
Comitê de Bacia Hidrográfica Médio Paranapanema ­ CBH-MP
·
Empresa Brasileira de Pesquisas Agropecuárias ­ EMBRAPA, Jaguariúna
6.
LOCAL GOVERNMENTAL ORGANIZATIONS
Paraguay -- Gobiernos de los Departamentos Alto Paraná-Itapúa-Caaguazú-Concepción
Uruguay -- Intendencias de los Departamentos de Salto y Paysandú
7. UNIVERSITIES
Argentina
·
Universidad de Buenos Aires - UBA
·
Universidad Nacional del Litoral - UNL/FICH
·
Universidad del Centro - Instituto de Hidrología de Llanuras - UNICEN/IHL
·
Universidad de la Plata - CISABA
·
Universidad Católica de Santa Fe
Brazil
·
Universidade Federal de Goiás ­ UFG
·
Universidade Federal do Mato Grosso ­ UFMT
·
Universidade Federal de Minas Gerais ­ UFMG
·
Universidade Federal de Uberlândia ­ UFU
·
Universidade Federal do Paraná ­UFPR
·
Universidade Federal do Rio Grande do Sul-UFRGS/ Instituto de Pesquisa
Hidráulica-IPH
·
Universidade do Vale dos Sinos ­ UNISINOS
·
Universidade Federal de Santa Maria ­ UFSM
·
Universidade Federal de Santa Catarina ­ UFSC
·
Universidade Estadual Paulista Júlio de Mesquita Filho ­ UNESP
·
Universidade de São Paulo ­ USP
·
Universidade Federal do Matorgrosso do Sul
Paraguay
·
Universidad Nacional de Asunción
Uruguay
·
Universidad de la República
8. NONGOVERNMENTAL ORGANIZATIONS (NGOs)
Argentina
·
Asociación Latinoamericana de Hidrología Subterránea
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·
Instituto de Estudios e Investigaciones para el Medio Ambiente
·
Comisión Desarrollo Sustentable Cuenca del Plata
·
Fundación Ambiente e Recursos Naturales
Brazil
·
Consórcio Intermunicipal de Desenvolvimento dos rios Miranda e Apa ­ CIDEMA
·
Associação Brasileira de Águas Subterrâneas ­ Regional de Minas Gerais - ABAS/MG
·
Associação Brasileira de Engenharia Sanitária ­ Regional de Minas Gerais - ABES/MG
·
Associação Brasileira de Recursos Hídricos ­ Regional de Minas Gerais - ABRH/MG
·
Associação Brasileira de Águas Subterrâneas ­ Regional do Rio Grande do Sul
- ABAS/RS
·
Comitê de Bacia Hidrográfica do rio Taquari ­ Antas
·
Associação Brasileira de Águas Subterrâneas ­ Regional do Paraná - ABAS/PR
·
Comitê de Bacia Hidrográfica do Rio Araguari
·
Conselho Regional de Engenharia, Agronomia e Arquitetura ­ CREA/RS
·
Fórum Gaucho de Comitês de Bacias Hidrográficas
·
Instituto Biguá / Movimento Grito das Águas (ONG)
·
Coalisão Rios Vivos (ONG)
·
Fundação Educacional do Município de Assis - FEMA
Paraguay
·
Ceamso
·
Alter Vida
·
Asociación de Geólogos del Paraguay
·
Sociedad Paraguaya de Agua Subterránea
·
Sobrevivencia ­ Apoyo Integral a Comunidades Nativas y Ecosistemas
Uruguay
·
Associación Soriano para la Defensa de los Recursos Naturales
·
Centro Interdisciplinar de Estudio Sobre el Desarrollo
·
Grupo Ñangapire
·
Instituto de Ecología del Río Uruguay
·
Comisión Técnica Mixta de Salto Grande
9. PRIVATE SECTOR ORGANIZATIONS
Paraguay
·
Grupo Minero Guaraní
·
Hidrógeno
·
Sociedad de Estudios de la Tierra (SETI)
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Additional
Annex 16
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Letters of Endorsement
The Letters of Endorsement have been received and are attached separately.
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Additional
Annex 17
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
GEF STAP Review
TECHNICAL REVIEW
" Project for the Environmental Protection and Sustainable Development
of the Guarani Aquifer System"
Review carried out by:
Edwin D. Ongley PhD.
Emeritus Scientist, National Water Research Institute
Environment Canada
August 4, 2001
The response to the STAP Reviewer's comments is presented below in italics and is
organized according to numbering in the Reviewer's submission.
1. General Comments and Overview
This Project Brief (PB) is especially well prepared, comprehensive, and contains all the
information that one would expect in a GEF application. In some respects, the PB is perhaps too
comprehensive as it tends to be repetitive. Also, certain points tend to get lost in the text. Given
the size of the PB (88 pages), it would be improved with a Table of Contents.
A Table of Contents has been included in this Project Brief.
This technical review includes a focus on certain aspects that, in the opinion of this reviewer,
require some brief explanation and which may serve to clarify these issues in the mind of the GEF
Council.
The only significant deficiency in this PB is the absence of hard data on the problems of the
aquifer. This leads to certain technical questions raised below. Recognising that the TDA will
deal with this in greater detail, one might, however, expect a brief technical summary of what is
known (and not known) about the aquifer, as a basis for justifying some of the actions proposed.
(refer to section 4 below).
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2. Relevance to GEF
This project clearly fall within that set of criteria defined by International Waters. It is particularly
gratifying to see a project come forward that is anticipatory rather than remedial in its major
dimensions. This should be encouraged where important transboundary issues are in play.
3. Objectives
The proposed objective are clearly stated and are entirely appropriate to the nature of the issue
and the range of solutions that are realistic and implementable.
The objectives are well focused in the PB, and are certainly achievable given the caveats and
implementation schedule proposed. The PB is particularly well focused on the scheduling of
related activities and has a realistic view of what is achievable in the timeframe available. The
Project proponents clearly have much experience in this area. There are no objectives that should
be changed and none of consequence that should be added.

4. Approach
The approach to this project (the six [+ administrative] components) is clearly defined and
appears to be technically sound (given the absence of hard technical information in the PB). The
implementation steps and related technical detail outlined in Annexes 1 and 2 seem reasonable.
As noted below, certain aspects of this approach would benefit from some explanation.
a)
The fact that the TDA is not listed in Annex 1 as a major activity seems strange (compare
with the SAP which is clearly noted).
b)
It is not clear to this reviewer how the project components are sequenced relative to the
production of the TDA and the SAP (ref. Annex 2, Component 2) which are, it seems, major
outcomes of this project (one learns this on page 33).
c)
It would be useful to have an explanation of how the substantive components of this
project differ from (or link to) what would be recommended in the SAP (once it is developed). In
other words, some of the components are what one would expect to see in the SAP, but appear
here to be implemented prior to development of the SAP.
For example:
Component One presumably, is critical to both the TDA and SAP, yet neither are mentioned
on page 12.
Component Two: how does this differ from what one would expect as a recommendation of
the SAP, when it is developed.
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4.a),b),c) One of the innovative concepts of this project is related to the fact that it does not only
focus on studies and preparatory activities during the four years of its implementation, but that it
provides some action from the beginning in order to maintain and maximize stakeholders' interest.
This is in line with the recommendations at the First GEF International Waters Conference in
Budapest in October 2000 during which it was pointed out that SAP and TDA formulation periods
have been too long in a number of GEF-supported International Waters projects. It is especially
reflected in components 1 and 5, which will provide more information about the aquifer system and
help implement pilot activities. At the same time, it cannot be expected that within four years
everything would be known about this large groundwater body, nor that a full institutional/legal
framework would be in place. In fact, the project explicitly states that the objective is to reach a
consensus proposal for such framework. Therefore the SAP will have to make use of the results of the
different components, which will provide both lessons learned, identification of knowledge and action
gaps, as well as needs for future financing of identified activities. The TDA is considered a part of
the SAP process and therefore does not appear as a separate component in Annex 1. It is mentioned
as a part of the SAP in both Annexes 1 and 2. It will, however, constitute a monitorable line item of
its own in the terms of reference for the SAP.
d.
Transboundary Issue: The transboundary nature of this project seems to be based mainly
on the fact that the aquifer is shared by four countries. However the project document does not
demonstrate that there is, in fact, a transboundary threat or to what extent a common approach to
management is essential. The real question, and which presumably will be answered in the TDA
will be the extent to which threats in one country (e.g. groundwater contamination around Sao
Paulo) have the potential to damage quality and quantity in adjacent countries. This seems to be
assumed in the PB. A common management approach is only required when it can be
demonstrated that a threat in one country constitutes a threat in adjacent countries. If this cannot
be established, then a common approach to monitoring and evaluation would be the main focus.
4 d) It has been established through technical studies that clear transboundary issues exist in the
border areas of Argentina/Uruguay (well yields are diminishing and some cross border disputes are
apparent due to the importance of these geothermal wells for tourism) and Uruguay/Brazil (pollution
between sister cities across the border). The nature of the aquifer system, i.e. very large volumes of
mainly confined aquifer storage compared to significant ­ but smaller and much more localized ­
volumes of active recharge, mean that there is a possibility that major development could provoke
large drawdowns with the potential for conflict between competing users. This is the more
significant, given the fact that the most valued exploitation is in the form of `overflowing geothermal
wells' and conservation of such artesian heads is managerially more demanding than normal aquifer
management.
In addition, the recharge area in Paraguay, bordering Brazil and Argentina, is a potential area for
transboundary impact. These three areas have been included as Hot Spots to be addressed by the
project. In addition, the area of São Paulo is the one experiencing the most extraction and pollution
in the entire aquifer system area. While it is highly unlikely that pollution in São Paulo would reach
the other countries, the technical and institutional assessments have shown that this area can provide
important lessons in terms of decentralized management and monitoring approaches. All four
countries agree that the institutional management framework for the Guarani Aquifer System needs
to be as light as possible, precisely due to its size. Therefore it will be necessary to test which types
of measures will work in border areas and also in areas of significant national importance. This
information has been added to the Project Brief.
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Other related environmental issues:
e.
Surface and Groundwater linkage: The linkage between this project and surface water
management is important, especially in the context of an absence of common management
practices (especially in water quality management) for the Paraná River Basin which is also
common to all four countries and overlies, more or less, the Guarani Aquifer. Also, some
countries, such as Argentina, have very poorly developed legal approaches to water quality
objectives or standards for controlling effluents for surface water. How will this lack of a legal
framework for surface water management affect this much more complex task of developing legal
criteria for managing groundwater? Have the proponents of this project considered what linkages
are necessary between surface and groundwater management at the transboundary scale in order
to ensure success of this particular project? More pointedly, can the groundwater component
proceed in the absence of a suitable parallel framework for surface water quality management?
The linkage between this and other CAS projects has not been made.
A related issue is the linkage between increasing use of groundwater when, in fact, there is
much surface water. Is better surface water management part of the solution? It seems hard
to image that surface water management will not be part of the overall management plan.
4 e) 90% of the Guarani Aquifer System is confined and 10% constitute recharge areas. Thus, given
the geomorphology and hydrogeology of the area there are few locations where surface watercourses
are recharging the unconfined aquifer system. For this reason the interaction between ground- and
surface water is strongly limited in most of its reach. It means that management can be tackled
semi-independently of that of surface water. One of the results of the project, especially Component
1, will be a clearer knowledge about the recharge areas, which are not completely defined as yet. A
major effort will be made, for instance, in the border area in Eastern Paraguay to model
surface/subsurface interactions. It is anticipated that these results will provide the information
necessary to design appropriate mechanisms for the interaction with relevant surface water areas. ­
An issue of importance is the role and significance of the aquifer system in providing baseflow to
river systems (especially the Rio Uruguay) and sustaining wetlands in Misiones and Corrientes
Provinces of Argentina, which is an important unknown in terms of transboundary waters, but will be
under investigation in the project.
f.
Perhaps I missed it, but I do not see reference to the determination of allowable
(sustainable) yield as one of the main technical outputs.
4 f) Given the complexity of this aquifer system, quantity is an issue in some parts (e.g.
Uruguay/Argentina; São Paulo), but less in other ­ less developed ­ parts. Based on the technical
assessments to be carried out during the project, sustainable yield estimates would be one of the
outputs for subareas of concern.
g.
The reference to a GIS system (e.g Annex 2 : Component 2b) should focus on an
Information System and not a GIS system. GIS is only one of the necessary tools in such a
system. For example, GIS does not handle documents (required in this project); GIS does not do
decision-support (undoubtedly will be required). GIS systems are poor at numerical analysis and
numerical modelling (required for this project).
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4 g) In Spanish/Portuguese, the Information System will actually be called SISAG (Sistema de
Información del Sistema Acuífero Guaraní), for the reasons correctly pointed out by the reviewer.
This has been adjusted in the Project Brief.
h.
Beneficiaries: I did not see any reference to use of the aquifer for agricultural (irrigation)
purposes. Perhaps there is no such use. If there is, then this use should be identified and
quantified, as it may be the most intractable management issue. A related issue is the
contamination of groundwater by agriculture, especially by nitrogen which is usually the most
widespread of groundwater contaminant in America and Europe.
4 h). This issue will be addressed in Component 1.4 (see Annex 1) "Water quality is assessed and
pollution patterns distinguished in terms of the origin, impacts and ways to remediate pollution". As
mentioned in the same paragraph, this will also include recharge/discharge areas where irrigation
may play a major role.
i.
Annex 13 ­ Root Cause - issue is not that WB has/has not a policy on groundwater, but
what are the institutional frameworks that already exist elsewhere and which may work here.
Reference to the UN's transboundary water convention would be useful.
4 i) The fact that the World Bank does not have a policy on groundwater was mentioned in the
context of useful lessons to be learned from this project as to future endeavors in other countries, in
which the World Bank may be involved. It is not mentioned as a root cause. As to general
international legal frameworks, the UN transboundary water convention is only of limited use, given
that it does not include confined aquifers. As previously noted, the Guarani Aquifer System is 90%
confined and only 10% free, thus constituting a hybrid case, for which innovative measures will have
to be sought. The guidance from the Convention will be taken into account as appropriate.
Root Causes (Para 4) : these are almost never quantifiable and it would be unwise to offer
this as an output. In some respects, the "root cause" analysis is less appropriate for this study,
than a "threat analysis" in that the system seems to be not yet severely impacted.
4 i) The correct wording should have been "The root causes of existing and potential problems will
be identified during this project." The sentence has been corrected in the present Project Brief.
j.
Transboundary Diagnostic Analysis (TDA). This is a key activity that is too often done
poorly. A high degree of rigour, discipline, and technical oversight, needs to be brought to bear
on this activity. This activity should lead to a "threat analysis" and not solely to a diagnostic
analysis (what, where, when).
4 j) See response to comments 4 a),b),c)
k.
Process Indicators:
·
What is the probability of obtaining a four-country agreement on management of the
Aquifer?
·
"the existence of a functioning monitoring network" - this needs to include an harmonized
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monitoring network based upon agreed priorities and using modern principles of groundwater
quality monitoring. (not so easy as it sounds as it includes, amongst other things, international
acceptance of a common standard for data quality).
·
While a legal framework is required, an indicator should reflect the willingness of the
participants to enforce this legal framework (legal frameworks are common in Latin America, but
willingness or ability to enforcement is less so).
·
Following the TDA there needs to be some assessment of the capacity (technical and
institutional) of each country to carry out the work that is identified, and what capacity
development may be necessary to overcome any identified deficiencies. As an example, Brazil is
said to have the technical capacity to analyze only 30% of the active ingredients of pesticides used
in that country.
4 k) The probability that the countries will come to a consensus proposal is high. Given that the
final adoption of any legal framework is dependent on the governments and legislature of each
country, the project does not have the actual adoption as one of its outputs. It will be one of the
challenges of the project to design a framework that is light and therefore feasible in order to
increase the likelihood that legal and institutional agreements are followed up in practice. An
important design feature of the project is to include subnational levels of government as well as
other stakeholders (academia and other civil society groups). This is expected to help disseminate
project results and hopefully generate pressure to comply with jointly agreed actions, such as joint
monitoring standards. A capacity assessment was carried out during project preparation and a more
in-depth assessment will be part of project implementation.
l. Stress Reduction Indicators
"identified and quantified water quality threats and their evolution" - should this not be "
evaluation" rather than evolution?
4 l) Evolution in this context refers to forecasts about the future developments of these threats
(stable, increasing, etc.)
m. Environmental Status Indicators:
"implementation of an up-to-date, functioning GIS..." This should focus on an "information
system" and not GIS per se. (or a GIS-based information system)
4 m) See response to comment 4 g)
5. Background Information
Annex 12 (Aquifer Description) ­ more detail would have been useful. This is very short and
not very complete. Eg. in Annex 12 and 13, and elsewhere, document says that "significant
pollution" is occurring -- A fuller description would have been useful. Eg. what is known
about pollution of aquifer ­ microbiological (municipal, animal wastes)? industrial
contaminants? (See para. 3.5.) Agricultural (especially N); etc. Root Cause analysis focuses
on pollution status and degradation potential (Para. 3). Is this hearsay evidence or hard
evidence? Or does it fall into the category that it has been said so many times that everyone
believes it.
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Generally, the PB provides little technical information nor cites informed sources to justify
some of the
central claims. This is NOT a major oversight insofar as detailed technical
information is usually lacking in
such situations, however something MUST be
known about the aquifer in order to initiate country actions to
involve the GEF on this issue.
5. Further information on the aquifer characteristics has been added to Annex 12 of the Project Brief
in response to this comment.
6. Funding Level
Relative allocation of funds amongst the various components seems reasonable, although I
personally believe that not more than 10% of the total should be devoted to project management
per se (here, 13%). The total amount seems reasonable given the major activities anticipated.
6) Given the regional nature of this project (and large geographical area that it covers, with numerous
local stakeholders) the project coordination activities are considered both critical to the project's
success and necessary to be well funded in order to achieve their objectives. We feel that the proposed
allocation is well justified based on the needs of this type of project.
What is the potential of default by Argentina on promised counterpart funding under this
economic climate?
The project will be included in the national budget. In addition, a significant part of Argentina's
contribution will be in kind.
7. Innovation
The action of developing an international management plan for a major aquifer will be truly
innovative, and will provide a useful example for other similar problems world-wide.
The fact that the GEF does not fund research, the need to gather information and carry out
investigations is an ESSENTIAL part of this project. It is this reviewer's opinion that many GEF
projects suffer because of an assumption that new knowledge is not needed to bring the project to
a successful conclusion. It is gratifying to see that a significant proportion of the budget is
targeted to this activity.
(This summarizes comments which have been responded to above).
8. Strengths/Weaknesses
The greatest strength of this project is the ability to take proactive action against future
degradation threats.
In my view, the PB is mainly weakened by the lack of evidence to support the supposition that
there are threats (especially contamination issues) which are transboundary in nature. Also, the
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lack of linkage with surface water quality management would appear to be a weakness. Neither
of these are, however, reason to cause the proponents to develop a new strategy ­ only that some
explanation would improve the quality of this proposal.

9. Conclusion
This is thoughtful, comprehensive, and well designed project. The proponents are to be
congratulated. The risks are transparent and manageable. While some limited weaknesses are
apparent it is highly likely that a brief explanation will put these matters to rest. This is an
excellent example of use of the GEF for pro-active purposes and should be greatly encouraged.
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Additional
Annex 18
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani Aquifer
System Project
Component 5: Development of Management and Mitigation Measures within Identified
"Hot Spots" - Detailed Description
Background
The objective of this component is to establish and test local groundwater management practices,
which will be carried out according to sustainability and environmental protection criteria in
transboundary areas in which conflicts already exist or may potentially arise. The pilot projects
involve the generation and analysis of new and more in-depth data through a broad spectrum
technical, scientific, institutional, legal and educational activities as well as communication and
public participation in selected Hot Spots of the Guarani Aquifer System. The results of the pilot
projects will permit to detail and reorient future steps of the project, and will provide replicable
experiences to the benefit of other localities in the Guarani Aquifer System and other groundwater
areas worldwide.
Component 5 consists of 4 subcomponents, one for each Pilot Project, each one with its own
phases, arrangements and tasks. Two of these, the pilots in the Hot Spots of Concordia/
(Argentina) and Salto (Uruguay) as well as Rivera (Uruguay) and Santana do Livramento (Brazil)
will be carried out through umbrella consultancy contracts, one each for technical/scientific
studies and services, and for public participation and environmental education.
The Pilot Project in eastern Paraguay will be developed in cooperation with the BGR. In this case,
the National Project Executing Unit of Paraguay will define the pilot area jointly with the BGR
and the Guarani Secretariat to maintain coherence with the overall project and in order to define
the public participation, social assessment and environmental education activities, which will be
carried out through the project itself.
For the Pilot Project in Ribeirão Preto, Brazil, the project's input will focus on social assessment,
public participation and Technical Assistance to develop aquifer management structures while the
technical and scientific investments have already been made or are on-going through in-country
and bilateral arrangements.
The integration of the actions in the case of all contracts will be defined in their respective TORs.
It will be the responsibility of the Guarani Secretariat, in close cooperation with the national
coordinators to maintain coherence and complementarity of the components while making sure
that investments are adapted to local needs.
There is an important interaction between Component 5 and the aquifer system wide Component
1. Figure A18-1 presents the interrelationships between activities of Component 1 and
Component 5 during the implementation period of the project. It also permits to identify the
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production of information required through Component 1, which is necessary for the development
of technical studies foreseen in the Hot Spots. The Figure also illustrates the activities and support
that the studies and experiences provide in the pilot areas for the overall Guarani Aquifer System.
This set-up makes clear that through the pilot projects activities, which are more closely linked to
local conditions, information will be generated to define the concrete objectives for management
and subsequent actions at the overall Guarani Aquifer System level.
Figure A180-1:
GUARANI AQUIFER PROJECT-
PILOT PROJECT-
COMPONENT 1
GUARANI AQUIFER PROJECT-
COMPONENT 1
GUARANI AQUIFER PROJECT
COMPONENT 5
PILOT PROJECT-
COMPONENT 5
PILOT PROJECT
Legal and Institutional
COMPONENT 1
COMPONENT 5
Framework
Legal and Institutional
Framework
9
Design Strategy for
9 -
Revision and Diagnosis of
-
Present Situation
Revision and Diagnosis of
Public Participation
Design Strategy for
Present Situation
Revision and Diagnosis of
Present Situation
Public Participation
Present Situation
Consolidation of
Protocols for Field
Initial Phase
Month 0
Technical Data
Consolidation of
Month 0
Work
Protocols for Field
Initial Phase
Technical Data
Work
Protocols for Field
Work
Social Assessment
Social Assessment
Well Identification, Uses and
Sources of Contamination
Well Identification, Uses and
Sources of Contamination
24
24 -
Hydrogeology
-
Specific Basic Studies
Hydrogeology
Specific Basic Studies
Information
Hydrogeology
Processed
Information
Modeling
Processed
Month 9
Processed
Month 9
Modeling
Month 9 Development Phase
Development Phase
Implementation of Actions
Stakeholder Forum
for Social Communication
Implementation of Actions
Stakeholder Forum
for Social Communication
Management
Lessons
Management
Evaluation and Control
Lessons
Management
Lessons
of Groundwater
Evaluation and Control
Implementation of Actions
of Groundwater
36 or 48
Implementation of Actions
36 or 48 ­
for Coordinated
­
­
Management
for Coordinated
Analysis and Control of
Management
Management
Risk Contamination
Analysis and Control of
Risk Contamination
Coordinated
Management
Coordinated
Management Phase
Month 24
Dissemination of Lessons
Month 24
Lessons for Public
Framework
Management
Management Phase
Month 24
and Results
Dissemination of Lessons
Framework
Lessons for Public
Framework
and Results
Participation and
Framework
Communication
Participation and
Communication
Description of Pilot Project Activities, Sequencing and Tasks
1.a
Concordia (Argentina) / Salto (Uruguay)
The area, which has numerous deep wells, is subject to major, current and potential hydrothermal
exploitation of the aquifer. It is located on both banks of the Uruguay River which separates both
countries, with its center in the cities of Concordia and Salto and covering territories of the
Province of Entre Ríos (AR) and the Departments of Paysandú, Salto and Artigas (UY).
This pilot project's objective is to prepare and test in situ methodologies and processes for the
identification, design, implementation and sustainable participatory management of the thermal
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zones of the Guarani Aquifer System in the confined zone adjacent to the Uruguay River in both
countries. The area has been designated as a Hot Spot in light of current and potential
exploitation trends stemming from intensive and diversified uses, which may be replicated and
applied in other similar areas of the SAG. Secondly, the development of the pilot project in this
area is strongly related to the geothermal assessment activities planned for component VI.
(1.a.1) Planning Stage
The objective of this planning stage is to collect all existing information, perform a diagnostic and
define the groundwork for the implementation and management needed for the subsequent stages.
It will have a duration of six to nine months. It will be carried out in close coordination with
regional activities to characterize the aquifer, such as establishment of a monitoring network and
implementation of a regional information system for the Guarani Aquifer System. The following
tasks will be performed:
·
Management and coordination of the pilot project's technical, scientific, legal and
institutional tasks
·
Evaluation of existing activities, diagnostic and definition of strategies
·
Preparation of basic cartography and linkage with SISAG
·
Analysis of existing managerial, legal and institutional framework
·
Organization of workshops and meetings to enable public participation
·
Social assessment
·
Design and establishment of a participatory management scheme
(1.a.2) Development Stage
Development of a database on the local system that is sufficient to provide the basis for analyzing
options and identifying preventive management actions. It will complement the existing level of
knowledge regarding the geology, stratigraphy, hydrogeology and hydrochemistry in the pilot
area, of the current and potential land and aquifer uses as well as sources of contamination. It will
have an estimated duration of 12 to 15 months. The following tasks will be performed:
·
Identification of wells and water uses and sampling
·
Geological and Geophysical Studies
·
Hydrogeological Studies
·
Hydrogeochemical Studies
·
Hydrogeological and Hydrogeochemical Modeling
·
Analysis of the local aquifer sub-system behavior due to current and potential uses,
assessment of their environmental impacts and risks
·
Organization of workshops and public meetings
·
Preparation of partial and final reports for broad dissemination
·
Design and implementation of participatory communication actions
(1.a.3) Management Stage
During the management stage, an analysis will be made of indicators related to the achievement of
project objectives, and actions for their follow-up, linkage and dissemination under the scope of
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the general SAG project will be identified. The duration will be from 12 to 15 months, during
which time the following tasks will be performed:
·
Preparation and development of proposals to implement management measures, actions
and instruments, including
(i)
Development of well protection measures
(ii)
Establishment and/or strengthening of a local monitoring network
(iii)
Development of management options
(iv)
Organization of workshops and public meetings.
·
Design of a pilot project monitoring indicators
·
Design of a project for project dissemination and extension
·
Preparation of partial and final reports for broad dissemination
Total sub-component cost: US$ 1,344,600.
1.b
Rivera(Uruguay) / Santana do Livramento (Brasil)
Located on the frontier dividing Brazil (State of Rio Grande do Sul) and Uruguay (Department of
Rivera), Livramento and Rivera are sister cities with intense exchanges and constitute the largest
urban center in the sandstone outcropping zone, which is located from north to south in the
central region of Rio Grande do Sul and Uruguay, containing Guarani Aquifer System waters
(Botucatú in Brasil and Tacuarembó in Uruguay). Due to agricultural and cattle raising activities
as well as small commercial and service industries, the area has a significant demand for water,
most of it supplied by the Guarani Aquifer System. This has led to risks of localized and dispersed
urban and industrial contamination in the recharge zone.
The pilot project's general objective is to prepare and test methodological developments for the
identification, design and participatory management of criteria, guidelines and instruments for the
sustainable management and protection of the Guarani Aquifer System in outcropping zones and
nearby confined areas, in relation to the potential risks of urban, industrial and agricultural
contamination and of conflicts of use due to intensive extraction. The results and experiences
may be replicated and applied in other aquifer areas with similar characteristics, under the
framework of the integrated ground- and surface water management and of joint management of
quality and quantity
(1.b.1) Planning Stage
The existing data needed for the proposed pilot will be collected, including at least a
climatological and hydrological, geological, hydrogeological, geological, hydrochemical,
hydrodynamic characterization, sources of contamination, and soil uses. Based on such data, a
diagnostic will be made, which will identify the major gaps in technical and scientific knowledge
about the aquifer system and its management in the Hot Spot region. This stage will have a
duration of 6 to 9 months and will include the following tasks:
·
Management of the pilot project's technical, scientific and institutional tasks
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·
Evaluation of existing actions, diagnostic and definition of strategies
·
Preparation of basic cartography
·
Analysis of existing managerial, institutional and legal framework
·
Organization of workshops and sectoral meetings and participatory social assessment
·
Design and implementation of a participatory management scheme for the development
of the pilot project
(1.b.2) Development Stage
Development of a database on the local system that is sufficient to provide the basis for analyzing
options and identifying preventive management actions and complement the existing level of
knowledge of the local SAG . It will have an average duration of 12 to 15 months and include the
following tasks:
·
Inventory of wells and uses
·
Inventory of sources of localized and scattered contamination
·
Geological and geophysical studies
·
Hydrogeological studies
·
Hydrochemical studies
·
Conceptual and computerized hydrogeological modeling
·
Analysis of current/potential water uses and risks of conflict
·
Organization of workshops and sectoral meetings
·
Design and instrumentation of social communication and environmental education
actions
(1.b.3) Management Stage
During the management stage, an analysis will be made of indicators of the achievement of pilot
project objectives, and actions will be identified for their follow-up, linkage and dissemination
under the scope of the general Guarani Aquifer Project in the 12 to 15 months in which they will
be carried out:
·
Preparation and development of proposals for the implementation of identified
management measures and actions.
This task will seek to identify, design and propose management criteria, measures and
instruments for the sustainable use and protection of the non-confined to confined aquifer
systems, aimed at this resource in the recharge area. As a follow-up action, this task will
seek to identify technical guidelines and regulations, draft laws, decrees and regulations
and other concurrent actions at governmental, non-governmental, user and private sector
level in general. The management instruments to be implemented include:
(i) Development of Well Protection Measures
(ii) Mapping of Vulnerability
(iii) Establishment and strengthening of local monitoring network
(iv) Studies of management scenarios
(v) Organization of workshops and sectoral meetings.
·
Design of a project to monitor indicators
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·
Design of a product dissemination and extension project
·
Preparation of partial and final reports for broad dissemination
Total sub-component cost: US$ 1,474,600.
1.c
Encarnación ­ Ciudad del Este ­ Caaguazú
The border corridor between Paraguay and Brazil/Argentina overlies part of the Guarani Aquifer
System, between the large development centers in the eastern region, namely Ciudad del Este and
Encarnación. It is a large zone of groundwater recharge, discharge, sandstone outcroppings and
basalt cover with large direct faults, exposed to contamination from biocides and agricultural
fertilizers (due to the agricultural expansion that has taken place). Therefore risk exists due to the
potential of urban and industrial irrigation in the region. This Pilot Project will provide critical
information regarding such areas in the Guarani Aquifer System and address concerns with regard
to its vulnerability to human disturbance. The exact sub-area for the Pilot Project will be defined
by project effectiveness.
The Government of Paraguay, in cooperation with BGR, will conduct a series of specific,
trans-border technical studies with the objective of evaluating the needs and potential for
improved management and the protection of groundwater in a non-confined aquifer, as well as its
relationship with the confined aquifer. These studies will be carried out in the first two years of
the project execution phase and may subsequently be extended to adjacent areas, including areas
in neighboring countries.
This pilot will take place in two phases:
Phase (1):
In the first two years, emphasis will be placed on data gathering, conceptual and
mathematical modeling of the aquifer and the recharge area in the western part of Paraguay. This
will be undertaken with Technical Assistance from the German Government (BGR ­
Bundesanstalt fuer Geowissenschaften und Rohstoffe).
Specifically, activities will include
- an inventory of wells and uses
- inventory of sources of localized and dispersed contamination
- geological and geophysical studies

- hydrogeological studies, and

- conceptual and computerized hydrogeological modeling.
The results expected in this pilot project will be of importance in the regional context of the
Guarani Aquifer System since they deal with key areas, with relatively little existing information.
The inputting of data in a database, thematic maps to SISAG, will be ensured by Paraguay's
National Project Execution Unit, in close collaboration with the Guarani Secretariat.
In addition to the above techncal studies, an in-depth participatory social assessment will be
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undertaken in the area. As outlined in Annex 12, this activity will include a specific focus on
indigenous groups. The social assessment will provide the basis for appropriate involvement of
stakeholders for Phase 2.
Phase (2):
Based on the expanded knowledge about this aquifer area aquired during Phase 1
activities, public education and participation activities will be designed and implemented in years 3
and 4 of the project. The extent and nature of these activities will depend, inter alia, on the results
regarding aquifer vulnerability in the area due to recharge and possible pollution patterns.
Total sub-component cost: US$ 552,100.
1.d
Ribeirão Preto (Brazil)
From an environmental standpoint, this area is highly critical. The intensity of the aquifer's
exploitation and the risks of contamination in the outcropping region distinguish it from other
zones in Brazil and the rest of the region. The area is located in the northeastern part of the State
of São Paulo, in the municipality and city of Ribeirão Preto. The program is of great importance
because of its coexistence in a critical zone, the intensity and diversity of uses, pollution
conditions and the recharge zone, and it is thus aimed at mitigating negative effects on waters
flowing to other regions and countries. Therefore, it is a comprehensive pilot program that is of
interest to the four countries.
Significant investments in local aquifer description and modeling have already been carried out in
this area. Using this information base as a starting point, GEF financing will be made available for
the Ribeirão Preto pilot project with the objective of encouraging public participation in the
development of aquifer management in this Hot Spot.
Activities to be financed would include (i) participatory social assessment, (ii) information
dissemination, including education materials, (iii) consultations and (iv) Technical Assistance
related to local aquifer management planning.
This pilot project is characterized by its strong counterpart financial support, including through
existing bilateral agreements, and high level of accountability for execution and follow-up,
attitudes which had already been taken and faced by federal and state governments through their
management agencies and development programs.
Total sub-component cost: US$ 359.600.
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Additional Annex 19
LATIN AMERICA: Environmental Protection and Sustainable Development of the Guarani
Aquifer System Project
Project Monitoring and Evaluation
A.
Project and system objectives
The stated long-term project objective is the sustainable, integrated management and use of the
Guarani Aquifer System. The proposed project would contribute towards achievement of such
objective by providing support to the four countries involved in jointly elaborating and
implementing a common institutional and technical framework for managing and preserving the
aquifer for current and future generations. The purpose of the project's monitoring and
evaluation system is to allow project management to oversee project activities and check on
progress made toward achievement of physical, financial and development targets.
B.
System description
B.1.
Conceptual basis
Given the decentralized nature of project activities, adequate monitoring will be essential for
efficient project implementation. In order to provide effective supervision of activities
implemented, as well as an assessment of the outcomes and possible impact of project
interventions, a comprehensive Operational Monitoring and Evaluation System (OM&ES) will be
established. It will be coordinated by an area at the central level within the General Secretariat
that would be specially created to undertake responsibility for overall project operational M&E.
This special area will work in close coordination with the NPEUs (the operational branches of the
Secretariat at the country level) and other implementing agencies for data gathering, recording,
processing, sharing and disseminating, as well as for project monitoring at the local level. A
computerized Management Information System (MIS) will be set in place to provide the
necessary technical support for efficient data recording and information processing and sharing.
The MIS will not only encompass the technical and data processing support for the operational
aspects of project implementation, but it will also provide lateral links to other project outputs like
the GIS and aquifer monitoring systems (described elsewhere) and forward links to the project
Web page, so that the information generated would be readily available and disseminated to all
parties involved. Thus, the operational monitoring and evaluation carried out in Component IV is
a horizontal activity that transects all of the project components, including the activity of the
aquifer monitoring system included in Component I, to which is closely linked and whose outputs
utilized for project monitoring and evaluation purposes.
B.2.
System structure
Strictly from an operational point of view, the structure of the MIS would cover three different
areas: programming and administration (PA); physical and financial monitoring (PFM); and
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performance evaluation (PE). The OM&ES would enable tracking of inputs and outputs from
project activities, as well as their outcomes. This would be accomplished through the use of a set
of indicators (see Table A19-1) belonging to two main groups, general performance (physical,
financial and development performance including input, output, outcome, process and impact
indicators) and environmental performance (including stress reduction and environmental status
indicators).
The quantitative and temporal elements of performance indicators, along with the full and
schematic Project Implementation Plan (see appendix A19-1) will allow the executing agency, in
collaboration and coordination with the Secretariat and the NPEUs, to prepare annual operation
plans, budgets, work plans and implementation schedules, and control adequate and timely supply
of inputs, completion of activities and delivery of project products. In addition, during project
implementation efficacy indicators could be developed and used if found appropriate, thus
completing the conceptual basis for the M&E framework. M&E activities would be based on the
first two groups of indicators, while the third group could be developed and used for management
purposes by the unit within Secretariat responsible for the technical oversight of the project.
B.3.
Main activities
Monitoring. Tracking of project activity progress would be based on a group of physical-financial
process indicators (PFM). The MIS-PA module would support preparation of the Annual
Operating Plans (POAs), to and provide the necessary background information to assess
implementation progress. The MIS-PFM module would provide the necessary up to date
information to allow monitoring of project physical and financial implementation, and also to
verify that implementation is consistent with the rules and criteria included in the Project Manual.
Evaluation. Evaluation of overall implementation performance and development impact of
project activities would be coordinated by the Secretariat and its inputs and outputs would be
contained in the MIS-PE module. Evaluation would involve miscellaneous activities of different
scope, including assessment of physical and financial implementation performance based on the
comparison of programmed target and actual values of a set of input and output indicators. This
would be coupled with development evaluation activities based on particular studies focused on a
complementary set of outcome, process and impact indicators, to determine the specific results
and impacts attained by the activities financed by the project. Furthermore, the MIS-PE module
would contain the information regarding achievement of development objectives. Information
would come from two different areas of activity: a continuous evaluation area and an independent
system encompassing the performance evaluation activities per se. Continuous evaluation would
be closely associated to the monitoring system and it would be based on the evolution of a small
group of indicators of "potential development" based on known relationships between activities'
outputs and development impacts. Actual global evaluation of development impact would be
based on a series of studies, including a baseline study, as well as midterm and final evaluation
reports. These activities would allow, in the medium term defined by the project life, to measure
trends toward attainment of the development objectives defined at the outset both for the different
components and for the project as a whole.
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In coordination with other project-related meetings, Secretariat would conduct annual
participatory monitoring and evaluation meetings with representatives of the NPEU's and other
institutions and organizations involved with the project. This would allow not only ample
feedback about project implementation progress in the eyes and opinions of all parties involved, as
well as provide the basis for a participatory mechanism to conduct adjustments to project
implementation as needed, as well as a mechanism to disseminate achievements of project
implementation.
C.
Management Information System
The system would allow the Secretariat to collect and process information uniformly and
periodically on the set of indicators needed by the M&E system to achieve its objectives.
Indicators would be divided into two main categories: a) general ­physical/financial/development-
performance (divided in up to five categories: input, output, outcome, process and impact); and b)
environmental performance (divided into two categories: stress reduction and environmental
satus), plus an optional third category, c) efficacy (divided into two categories: efficiency and
effectiveness) thus providing the conceptual basis for the M&E framework. M&E activities
would be based on the first two groups of indicators, while the third group could be developed
and used by the different implementation sectors for management purposes.
The MIS system and associated indicators structure would help Secretariat: support monitoring
and evaluation efforts of the executing institutions; compile and prepare reports required by the
Bank for administrative and monitoring purposes; and produce implementation progress reports
that would be submitted to the Bank twice a year, in time for the biannual Bank supervision
missions.
Project monitoring. The Project Monitoring Plan would be based on the POAs. Besides,
diagrammatic POAs will be produced based on the structure agreed for the schematic Project
Implementation Plan, and would basically show in matrix format, the tasks planned for
implementation during the year, the period during which each task would be implemented, the
timing and amount of physical output expected from each task, as well as the timing and amount
of expenditures associated with each task. Based on this tool, the Secretariat will be able on a
monthly basis to review physical and financial implementation progress with the NPEUs, and take
corrective actions as necessary.

Evaluation of Project Implementation and Impact Performance. The evaluation of the overall
implementation performance and development impact of the project would be coordinated by the
Secretariat. It would involve different areas of activity, including; evaluation of project
implementation performance, and both continuous and global evaluation of development impact.
In all, these activities would entail the assessment of physical and financial implementation
performance based on input, output and outcome indicators, coupled with specific evaluations
based on a complementary set of performance indicators, to determine the specific outcomes and
impacts attained by the activities to be financed by the project.
Information regarding attainment of development objectives would come from two different areas
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of activity: a continuous evaluation area and an independent system encompassing the
performance evaluation activities per se. Continuous evaluation would be closely associated to
the monitoring system and it would be based on the evolution of a small group of indicators of
"potential development" based on known relationships between activities' outputs and
development impacts. Based on the information about these indicators the MIS would allow
assessment of the project's ability to achieve its proposed development objectives. Actual
evaluation of development impact would be based on a series of studies, including a baseline, a
midterm and a final evaluation study. These activities would allow, in the medium term defined
by the project life, to measure trends toward attainment of the development objectives defined at
the outset both for the different sub-components and for the project as a whole.
A list of basic physical implementation performance indicators to be monitored is provided in
Table A20-1. Based on the set, a sub-group of selected key indicators would be developed,
agreed upon during negotiations and included in the Project Implementation Letter. In addition, it
is expected that initially undefined targets as well as other indicators and their targets will also be
defined during project implementation, as results from the studies financed become available and
consensus is reached with regards to new lines of action and goals to be pursued.
System reporting: The Secretariat would be responsible for the preparation of the following types
of progress reports:
Annual budget and work plans would be produced, no later than December 15 of each year,
describing all project activities to be done in the subsequent year along with their corresponding
budgets.
Semiannual reports on all project activities in the previous six months would be produced no later
than July 15 of each year. The reports would have a format and coverage acceptable to the Bank,
including presentation of project implementation indicators. The reports would basically contain a
physical and financial analysis along with an update of input, output and outcome indicators,
stemming from a synthesis of MIS data, indicating implementation progress to June 30.
Annual reviews would be produced no later than January 31 of each year. The annual review
would cover project implementation in the past year (to December 31) and analyze the proposed
budget and work plan for the subsequent year with respect to the project's implementation
indicators and agree on any necessary changes in implementation. This Report would utilize the
standard format of the semiannual Project Progress Report agreed upon with the Bank, but would
include a summary of the status of all Project Performance Indicators; status of specific activities;
compliance with procedures outlined in the Project Implementation Manual; and analyses and
recommendations relevant for optimizing project implementation, based on technical studies.
Project midterm review report. A midterm review (MTR) of the project would be held to
evaluate overall progress with project implementation, to assess results and to define measures to
reorient the project as necessary. Data for the MTR would include all information about project
expenditures and physical implementation progress. All data would be complete for the first 24
months of project implementation. Besides the quantitative data, the MTR report would also
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include an overall project evaluation and individual program evaluations that would be especially
carried out as part of the review process.
The MTR's function would be to evaluate the project's overall performance in terms of achieving
its expected outcomes. The MTR would assist the governments of the four countries, the
Secretariat and the World Bank in identifying positive experiences as well as problems occurring
during the initial years of project implementation. This evaluation would recommend any
adjustments required during the second half of project implementation. The MTR would evaluate
the efficiency and effectiveness of project activities; the performance of the institutions involved in
implementation; management performance; the supervision mechanisms and the MIS; the
effectiveness of institutional strengthening and technical assistance activities; and the project's
targeting mechanisms.
The MTR would be based on the management monitoring reports, the Semi-Annual and Annual
Reports, technical studies and socioeconomic assessments. At negotiations, GOIC and Bank
would agree: a) that the Secretariat would prepare a framework for the formulation of the TORs
for the MTR; and b) to make necessary adjustments in project implementation as recommended
by the MTR.
D.
Institutional Responsibilities and Organizational Arrangements
The Secretariat would have overall responsibility for monitoring and evaluation efforts.
Institutions participating in project implementation would collect data on agreed indicators
regarding the activities they execute. The Secretariat would ensure that these institutions carefully
record the required information in the central database, and monitor the respective institutional
performances in project implementation. They would also be required to submit full periodic
progress reports to the Secretariat, as well as other relevant project information.
The new centralized MIS would be developed and implemented, among other things, to collect
and process data to monitor physical and financial progress of the project, as well as data for
ongoing impact evaluation. The MIS would provide the basis for standardizing, coordinating,
processing, consolidating and reporting the input and output data generated by the individual
agencies involved in project implementation.
The new system would have a centralized data storage location at the Secretariat level, with
decentralized data input and access features to avoid duplication of data recording efforts,
maximize system usefulness at all users levels, and promote ownership of and commitment to
recording of up to date quality data. Local level users would be able to use the data they collect
to generate their own specific planning and monitoring information, but still share it with the
central level who would use it for overall project planning, monitoring and evaluation purposes.
The Secretariat would also be responsible for leading the process to introduce any modifications
needed to overcome constraints to adequate project implementation and to guide participating
agencies to adjust their actions. Using MIS data, together with periodic controls on the
performance of other participating institutions, field visits, etc., the Secretariat would have a good
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understanding of the overall implementation of the project and its components and programs.
Due to the comprehensive monitoring, the Secretariat would be able to quickly detect slower
performing areas, identify the cause of the weaknesses, and take appropriate corrective measures.
Annual participatory monitoring and evaluation meetings between the Secretariat and
representatives of the NPEU's and other institutions and organizations involved with the project,
would allow feedback from all parties involved, and provide the basis for a participatory
mechanism to introduce adjustments to project implementation as needed.
The MIS would also provide a basis to validate the Annual Plans (APs), and facilitate the
introduction of adjustments to those plans and their corresponding annual budgets.
E.
Indicators
Tracking of project activity progress would be based on two different groups of performance
indicators. The following table shows both groups of indicators and their associated targets.
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Table A19-1
Basic Physical Performance Indicators
Indicator
Comp. Unit

Target
Global Year
Year
Year
Year
1
2
3
4
Genera Development Performance Indicators







Input:








Annual project operating plans produced and agreed upon by
P
#
4
1
1
1
1
the four countries by the month of November
Proofs of annual national budget allocations, contemplating
P
#
16
4
4
4
4
counterpart funds in agreement with the project operating
plans produced, by the month of December
UNEPs with a min. of one full time staff-person established
P
#
4
4



Agreements with co-financiers finalized and signed
P
#
3
3



Studies for Component 1contracted to firms
1
#
10
8
2


Minimum wells visited and sampled
1
#
1,000
400
400
200

Studies for Component 2 contracted to firms
2
#
8
3
4
1

Studies for Component 2 contracted to individuals
2
#
63
10
33
10
10
Computer equip. packages for GIS nodes purchased/installed
2
#
4




Studies for Component 3 contracted to firms
3
#
6
1
5


Studies for Component 3 contracted to individuals
3
#
2

2


Studies for Component 4 contracted to firms
4
#
1
1



Studies for Component 5 contracted to firms
5
#
9
9



Studies for Component 6 contracted to firms
6
#
1

1


Studies for Component 6 contracted to individuals
6
#
4

4


TA consultancy contracts for Component 7 assigned to
7
#
11
8
3


individuals
Computer equipment packages for SG purchased/installed
7
#
6












Output:















Water sample analyses carried out
1A
#
1,000
400
400
200

Isotope determinations and conclusions produced
1A
#
600
300
300


Workshops on technical issues
1A
#
15
4
4
4
3
Incremental number of wells being monitored per year
2A
#
184
36
148
184
184
(cum.)
SISAG modules installed
2B
#
4
4



Workshops on Information System and Well Monitoring
2A/B
#
6
1
2
2
1
Network
Events ­ seminars, meetings, workshops­ held to improve
2.C
#
9
1
2
3
3
water management (450 participants each).
- 146 -

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Twinning Programs carried out by water managers
2C
#
40
5
15
15
5
Short Term TA consulting contracts for Water Mgmt.
2C
#
50
10
20
10
10
Institutions
Training scholarships (program fees and stipends)
2C
#
50

20
20
10
Workshops and meetings held between stakeholders at
2D
#
16
4
4
4
4
multiple levels, to arrive at sustainable agreements
Bi-annual workshops held for technical discussions,
3
#
32
8
8
8
8
consultations and project progress information and feedback
Grant amounts (US$) awarded to CSOs from the FGC
3
#
200,000
75,000
75,000
50,000

Public monitoring workshops carried out
4
#
4
1
1
1
1
Comprehensive progress reports along with project result
4
#
4
1
1
1
1
and performance reports, generated and disseminated
International events with participation of project/country
4
#
4
1
1
1
1
stakeholders
Project annual workshops held after year 2
4
#
3

1
1
1
Stakeholder assessments in pilot areas carried out
5
#
4
4



Scientific studies executed within the pilot project areas
5
#
30
10
14
6

Geological, hydro-geological and hydro-geochemical maps
5
#
30

10
20

available via SISAG
Specific sub-regional digital hydro-geological models
5
#
3


3

available for decision-making support
Community communication programs implemented
5
#
4
4











Outcome:















Minimum percentage of all wells with water use, availability, 1A/2
%
70
50
70
70+
70+
quantity, and quality assessed by year 2
Regional hydro-geological maps produced
1A
#
8
3
3
2

Conceptual Models and Specific Hydro-geological Maps
1A
#
6
3
3


produced
Persons (government/universities/public utilities etc.) trained
2C
#
4,000
400
900
1,350
1,350
in improved water management
Percentage of population in the aquifer region reached to
3
#
10



10
heighten their awareness about the aquifer existence and
importance by year 4








Process















Multi-country agreement on the institutional and technical
P (2C)
%




100
framework for the mgmt of the SAG, reached.
Trans-boundary Diagnostic Analysis, identifying the primary P (2E)
%





threats to the SAG, carried out:
- initial diagnostic




100


- final diagnostic






100
Strategic Action Program for the sustainable management of P (2C)
%

25
50
75
100
the aquifer, as defined in the PAD, developed.
Consensus proposal for a joint legal framework for the
2C
%.
100
- 147 -

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management of the SAG set forth.
Monitoring network implemented and functioning.
2A
%

100



Mitigation and management measures regarding
5
%



100

groundwater pollution and depletion in "hot spots"
implemented and monitored.








Impact (initially non-targeted):















Pollution risks diminished or controlled.
P






Overdraft risks diminished or stabilized.
P






Risk of future inter-country groundwater conflicts
P






diminished.
Future mitigation and stabilization costs reduced
P














Environmental Performance Indicators







Stress Reduction:








Operational communications campaign (with a defined
3(B,C,D
%


30
60
100
percentage of the target population reached) implemented.
)
Water quality threats identified, quantified and their
1A,
%

100



evolution monitored.
2A
Norms for well design, construction and maintenance issued
1B
%.

50
100


taking into account sub-regional variations.
Groundwater pollution and depletion in specific "hot spots"
5
%

50
100


identified.








Environmental Status:















Goals, criteria and standards for the trans-boundary
P
%





diagnostic analysis and sustainable management of the SAG,
(2E)
agreed upon:
- for initial diagnostic



100



- for final diagnostic





100

SAG Western and Southern boundaries, recharge and
1A
%

100



discharge areas, surge zones and vulnerable defined.
Conceptual and mathematical models of the aquifer system
1A
%


100


completed.
Up-to-date, operative, shared Information System,
1B
%


100


implemented for trans-boundary information dissemination,
decision-making support, and management of the SAG.
C.
Costs and funding
Component IV costs will total US $ 0.48 million including a US $ 0.26 million GEF contribution.
- 148 -

---

A sizeable portion of available funds (up to US $ 0.2 million) will be destined to develop and
implement the computerized MIS that will be the backbone of monitoring efforts for effective
project implementation. However, up to 50% of the budget allocated will support information
processing and dissemination of project results within and outside of the Guarani Aquifer System
region. This effort will enhance capacity of human resources within local and regional
government institutions and promote widespread disclosure of results and lessons learned, with a
view to possibly replicate project results under similar conditions and circumstances elsewhere in
the Guaraní Aquifer System region and in other transboundary groundwater areas.
- 149 -

---

Guaraní Aquifer Project - International Waters Mercosul (GEF)
Draft Schematic Project Implementation Plan
Component 1
Pre-
Year 1
Year 2
eff.
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
1.- Expand\Consolidate Knowledge Base SAG
Prepare draft TOR for UC1
X
1.a.- Update\Disseminate CKB SAG
1.a.1.- Component Coordination Unit (UC1)
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
Select\contract UC1
>>>> >>>> >>>> >>>> >>>> >>>>
Prepare documents
x
Call bids
x
Select
x
Contract\Install UC1
x
UC1 operation
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
1.a.1.(i)- Data integration and Reasearch Plan
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
Compile\Integrate info\prelim. diagnosis
>----- ------- ------>
Preliminary well location map
>----- ------- ------>
Final well location map and db for SISAG
>----- ------- ------- ------- ------- ------>
Interim diagnosis
>----- -------
Final diagnosis, db for models and (PEA) Action Plan
1.a.1.(ii)- SAG Hydrogelogical\dynamic Characterization
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>>
Regional hydrogeological map
>----- ------- ------>
Iso-transmissibility\productivity maps; SISAG
>----- ------- ------>
1.a.1.(iii)- Recharge\transit\discharge Studies
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>>
Maps based on output form 1.a.3
>----- ------- ------>
( regional potentiomet ric & flow network )
Rsrv\rchrg\dschrg estimates; regional maps; SISAG
>----- ------- ------>
Task implementation period
Produce maps
Regional rsrv, nat rchrg\dschrg estimates (input for iv,v,1.a.6)
1.a.1.(iv)- Surgence Studies
Delimit surgence areas, produce regional maps and tech. norms
>----- -------
1.a.1.(v)- Connection of Fractured Aquifers
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>>
Preliminary diagnosis and action plan for study
>----- ------- ------>
Final report and Management Plan for connections
>----- ------- -------
1.a.2.- Well Inventory and Survey
57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7 57.7
Contract processing
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
Prepare documents
>----- ------- ------- ------>
Call bids
x
Select
>----- ------>
Contract
x
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
1.a.2.(i)- Data Compilation and Analysis
Workshop: field work protocols
x
Inventory and preliminary db
>----- ------- ------- ------- ------- ------>
1.a.2.(ii)- Field Survey (input for 1.b.)
Complete survey; final db and samples
>----- ------- ------- ------- ------- ------>
1.a.3.- Geology and Geophysics
95.3 95.3 95.3 95.3 95.3 95.3 95.3 95.3 95.3 95.3 95.3
Contrac processing
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
Select and contract consultancy to prepare TORs
>---->
Prepare TORs
>----- ------>
Prepare documents
>----- ------- ------- ------>
Call bids
x
Select
>--- ------>
Contract
x
Task implementation period
>>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>> >>>>
Opening workshop and Action Plan
>----- ------- ------>
Test W & S SAG limits
Data compilation and diagnosis
>----- ------- ------>
Produce maps
>----- ------- ------- ------- -------
Map & delimit SAG in Paraguay
Data compilation and diagnosis
>----- ------- ------>
Produce maps
>----- ------- ------- ------- -------
SAG tectonic structure and geometry
Data compilation and diagnosis
>----- ------- ------>
Produce maps
>----- ------- ------- ------- -------
Closing workshop
Prepare TOR
Contract Task
Task implementation period
Produce preliminary report
Produce final report
- 150 -

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- 151 -

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- 152 -

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