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Conce pt pape r for th e Binational Basin of th e Be rm e jo
1. Project Name:
2. GEF Implementing Agency:
Implementation of the Strategic Action Program
UNEP
for the Bermejo River Binational Basin.
3. Country or countries in which the project is
4. Country Eligibility:
being implemented:
Eligible under paragraph 9(b) of the Instrument.
Argentina - Bolivia
5. GEF Focal Area(s):
6. Operational program/Short-term measure:
International Waters
OP9
7. Project linkage to national priorities, action plans, and programs:
In 1995, the Binational Commission requested GEF assistance for the preparation of a water resources
management program in the binational watershed. Initial funds provided by GEF through a PDF Block B
Grant helped prepare a project proposal for the formulation of a Strategic Action Program (SAP) for the
basin, seeking to solve priority transboundary environmental issues. The preparation of the SAP was
conducted between 1997-1999 and was the outcome of a highly transparent, public interaction process that
has identified community-based mechanisms for the protection of the water resources of this Plata Basin
tributary river system. The public was not only consulted throughout the river basin planning process, but
actively participated in it.
This new project proposal is being compiled at a time when the Bermejo River Binational Commission, the
provinces of Jujuy, Salta, Chaco, and Formosa (in Argentina), and the governments of Argentina and Bolivia
are implementing measures to integrate stakeholders participation and grassroots-level involvement into water
resources management. Such measures have been in place in Bolivia for some time through an established law
for popular participation. These measures provide opportunities for the creation, strengthening and/or
implementation of effective organizations, and controls and fiscal instruments to mitigate and prevent land and
water management practices that degrade water quality, modify hydrological and hydraulic characteristics of
the Basin, and/or adversely affect the biological integrity of the Chaco and Bermejo River Binational Basin
(BRBB). In addition, the SAP provides a relevant and appropriate regional planning context for site-specific
interventions to be designed and catalyzed under the activities set forth in this proposal.
As mentioned above, community level interventions was the success of localized, community level
demonstration projects conducted during the period of SAP formulation. These projects reinforced local
ownership and local leadership roles, while facilitating changes in historic and traditional land use practices
from unsustainable practices to sustainable practices. In facilitating such changes, the SAP formulation
project encouraged the integration of governmental and nongovernmental interests for the economic benefit of
entire community groups and lessened environmental impacts on the river and its watershed.
The completion of the diagnostic and strategic programming phase of the BRBB actually marks the starting
point in the sustainable management of the BRBB. This initial phase identified, implemented and tested
sustainable land management practices on the local level, and created a basin-wide expectation for greater
civic involvement in resource management and economic development issues. The next phase of GEF
programming in the BRBB must identify, develop and implement mechanisms for the replication of those
practices and measures that have been demonstrated to be successful throughout the Basin. In so doing, the
BRBB project can continue to refine and demonstrate the means for, and benefits of, country ownership and
community participation in river basin management.
Activities proposed for implementation during this project period would be conducted in parallel with
numerous ongoing and proposed planning and development activities. Ongoing GEF-financed projects within
the Plata Basin include the Upper Paraguay River and Pantanal project in Brazil, the Maritime Front of the
Plata River project in Argentina-Uruguay, and several others under consideration. Additional infrastructural
investments in excess of US $ 500 million for water supply, wastewater, storm and flood water, and water
quality management are being financed or considered for financing from national and international sources.
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These projects are being conducted, or are proposed to be conducted, with funds provided by The World Bank,
the Inter-American Development Bank, and FONPLATA.
8. Status of national operational focal point review (dates):
Argentina: Garcia, Silvia, General Division for Int. Coop., Ministry of Foreign Affairs Date: Forthcoming
Bolivia: Mendez-Ferry, Marcelo Subsecretario de Inversion Publica Y Financiamiento Externo, Ministerio de
Inversion Publica y Financiamiento Externo Date: Forthcoming.
9. Project rationale and objectives:
During the SAP formulation process, the public was not only consulted throughout, but actively participated
in the process. As a result of this process, expectancy has been created among the riparian communities of greater
citizen involvement in the management of the land and water resources of the Basin. While this expectancy differs in
quality between the Bolivian portions of the Basin--where public participation has been an element of governmental
planning for some time, under the law for popular participation-- and the Argentine portions of the Basin, the basic
concept is one of public involvement in the sustainable use and protection of the Basin's land and water resources
through a process of dialogue between decision-makers and local communities. This project is proposed as a means of
giving effect to this concept.
Drawing upon the results of studies and pilot demonstration projects completed prior to and during the process
of completing the Transboundary Diagnostic Analysis (TDA) and developing the SAP, this project will
facilitate actions by the governments of Argentina and Bolivia to promote sustainable development in the
binational basin of the Rio Bermejo (BRBB). This project is designed to begin the process of implementing
the developmental and environmental guidelines of the SAP and, through a broad and participatory action
program, to address the principal causes of environmental degradation within the BRBB. The proposed
components of the project are consistent with the globally important concerns and priority actions identified in
the SAP as affecting all of the countries within the Plata Basin. These actions, however, constitute only a
small part of the total program included in the overall strategic action program set forth in the SAP. This
subset of actions has been selected because they comprise a specific set of priority, incremental activities that
will facilitate execution of the remaining strategic actions. Successful implementation of these actions will
provide support to the efforts of regional, national and binational institutions in implementing the balance of
the program of action identified in the SAP during subsequent phases of this project. The four components,
that together embrace all the project activities, are detailed below. These priority components have been
identified through a process of broad-based public participation and have been designed to permit the
formulation and implementation of a program for integrated management of the basin's water resources
(IWRMP).
10 &11. Expected Outcomes and Planned activities to achieve outcomes:
From each of the four strategic areas of the SAP, a reduced number of basic actions have been selected so as
to initiate and provide the necessary legal and institutional framework for the entire program. This project or
"short-term SAP", to be implemented in a 4.5 year period, is considered to be of immediate priority, and will
catalyze implementation of specific actions necessary to address priority transboundary problems identified
during the SAP formulation process
COMPONENT I: INSTITUTIONAL DEVELOPMENT AND STRENGTHENING FOR
INTEGRATED WATER RESOURCES PLANNING AND MANAGEMENT.
Activities undertaken within this component specifically address weaknesses within the current
organizational base, identified during SAP formulation, that hinder the effective, holistic management of the
water resources of the BRBB. This will ensure institutional capacity to implement the new laws, regulations,
and procedures necessary for the longer-term success of the watershed management measures by helping to
increase participation in decision-making within the Basin, and enhance and underpin the ability of the
Binational Commission not only to carry out its current mandate but also to assume additional responsibilities
relating to information sharing and coordination among stakeholders. Activities will include:
Activity 1.1. Development and strengthening of the institutional framework
This activity is intended: (i) to deepen and broaden activities initiated during the SAP formulation stage with
respect to implementation of the project and the coordination role of the Binational Commission, including its
institutional development as an agency for the basin, (ii) to promote regional coordination and programming,
and (iii) to address weaknesses in the complex institutional framework that currently impede a comprehensive
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vision of the basin and the integrated and sustainable management of its resources. This activity is intended to
develop and broaden the participatory framework, including mechanisms for specific participation by
provincial governments, the Prefecture and municipalities of Tarija, and to strengthen the capacities of the
institutions that represent them.
Activity 1.2. Development of a holistic regional legislative, economic and environmental framework
By designing and implementing legal and financial instruments and harmonizing standards for water quality
management and land use in the basin, this activity will serve to inform and involve water resource
professionals and others in the diagnosis and correction of environmental problems identified in the Rio
Bermejo basin
GEF: US $ 1,187,400; co-funding: US $ 1,856,600; total: US $ 3,754,000.
COMPONENT II: ENVIRONMENTAL PREVENTION, PROTECTION AND REHABILITATION:
Component II is designed to extend the implementation of feasible measures of basin management
identified during formulation of the SAP. Together with the institutional initiatives to be undertaken as part of
component I, the three activities programmed for this component will deal with specific transboundary aspects
identified in the Transboundary Diagnostic Analysis. In particular, action is planned on soil management, the
consolidation of protected areas, basic natural resource studies, and the maintenance of the quality of the
Basin's water resources.
Activity 2.1. Soil management and erosion control
The Transboundary Diagnostic Analysis identified several regions and sub-basins of the Rio Bermejo basin,
such as those within the Central Valley of Tarija, the sub-Andean or Yungas regions, the valley of the Iruya
River, and the valley of the Rio Grande in the upper basin, as critical areas in terms of current or threatened
erosion. These areas form the greatest areas of current and potential contribution to the production and
transport of sediments, and/or suffer from the greatest loss of productive soils. The SAP calls for
implementation of appropriate measures, both structural and non-structural (farming, ranching and forestry
practices, regulatory frameworks, and environmental regulation) in nature, to control soil loss through a focus
on watershed management. This activity, which will extend and transfer implementation of feasible measures
for erosion control in the upper Rio Bermejo basin, identified and proven to be effective during the SAP
formulation phase, to promote greater use of soil management practices that minimize degradation and the risk
of destabilization. The results of these efforts will encourage broader application of these management
practices and thereby contribute to sustainable land use (essentially for farming) and the conservation of areas
that, although not yet significantly altered, are at risk from land degradation. A key feature of this activity will
include the mitigation of erosion in critical zones of the basin. The output of this activity will include
application of recommended soil conservation and erosion control measures to limit the loss of soil.
Activity 2.2. Consolidating protected areas and protecting biodiversity
Based on the conclusions of the SAP, this activity will promote the creation of integrated, community-based
units within the Bermejo basin to service the ecotourism market, will help establish buffer zones and
environmental corridors to reduce human impacts on areas of significant habitat value, and will sponsor
specific studies on natural resources, including a pilot demonstration project on carbon fixation.
This activity will also help to transfer experience gained in two other natural areas of the Yungas cloud forest
region of Argentina and Bolivia and to design strategies for extending them to other natural areas of the lower
basin. The results of the project will be the introduction of management programs for the development of
protected areas and buffer zones in the vicinity of the National Parks and Reserves of Calilegua, Campo El
Rey, Baritu, Tariquia and Sama, and will promote ecotourism as a form of sustainable development in those
areas, within a framework of sustainability and protection of biodiversity.
Activity 2.3. Protection and restoration of water quality
This activity is intended to restore the quality of water in those critical stretches identified during the SAP
formulation phase, particularly in the watercourses classification study. Implementation of the cleanup of the
Guadalquivir River, planned during the formulation phase of the SAP, will imply additional support to the
efforts of the local institutions that will be responsible for carrying out the core activities under this plan. It
will be supplemented by a similar planning study of watercourses in the vicinity of the City of Bermejo,
another critical point of pollution of the water resources in the upper basin. In so doing, this activity will
extend and refine the lessons learned in the Guadalquivir sub-basin. It will ultimately have a beneficial effect
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for the entire Rio Bermejo basin. This activity will be complementary to the establishment of a water-quality
monitoring network for the whole basin, already undertaken.
GEF: US $ 3,624,200; co-funding: US $ 1,429,300; total: US $ 4,246,700. Additional funding for the
structural development aspects of this component is indicated under existing Inter-American Development
Bank and World Bank programs.
COMPONENT III: SUSTAINABLE DEVELOPMENT OF NATURAL RESOURCES.
Component III will encourage implementation of alternative production modes that will be environmentally
friendly, or that will, at least, minimize environmental degradation, while at the same time providing greater
economic opportunities for the local populace, in a context of integrated management of water resources and
planning for the basin as a whole. The initial action under this component will be to formulate an Integrated
Management Program for the Basin's Water Resources, which will draw upon, and at the same time establish,
a regional framework for execution of the remaining activities.
Activity 3.1. Implementation of the Integrated Water Resource Management Plan
This activity is intended to incorporate and strengthen regional practices, procedures and capacities for
programming and planning, thereby addressing one of the basic causes of environmental problems in the basin
as identified by the SAP. In particular, it calls for formulation and development of an Integrated Water
Resource Management Plan (IWRMP) comprising information gathering and dissemination, studies, analyses,
sharing of experiences, demonstrations, and evaluations conducted to date or to be undertaken as part of the
first stage of implementing the SAP. The results of this activity will provide an agreed planning framework
for sustainable management of water and other natural resources, within a regional regulatory context
negotiated and supported through a broad process of public participation.
Activity 3.2. Implementation of sustainable management practices that will contribute to the
rehabilitation of degraded areas
The Transboundary Diagnostic Analysis identified human pressures on natural forest resources as a direct
cause of the loss of habitat and biodiversity in the montane systems of the upper basin. At the same time, the
combination of the tremendous fluvio-morphological dynamics resulting from the transport of sediments
originating in the upper basin and unsustainable approaches to the management of natural resources in
general, and of the land in particular, associated with farming activity, have been identified as immediate
causes of the problems of lack of access to water resources and degradation of soils in the Chaco, an area of
great regional importance in terms of habitat and biological diversity. The SAP recommended both structural
and non-structural measures to address erosion risks in the upper basin and to control the deposit of sediments,
to moderate excessive fluctuations in water flow, and to limit the negative impacts of the invasion of exotic
species in this part of the lower basin. The activity will extend and transfer feasible approaches to sustainable
economic development resulting from experience during the SAP formulation stage, in the form of pilot
projects. These will in turn help to mitigate environmental problems arising from the degradation of forests
and soils by human activity.
Activity 3.3. Evaluation of traditional subsistence practices in agriculture and fishing
The Transboundary Diagnostic Analysis found a high incidence of subsistence-level exploitation of natural
resources in some areas of the Rio Bermejo basin. Given the high population growth rates and the
vulnerability of the natural resource base in these areas, these levels of exploitation are clearly unsustainable.
The SAP therefore recommended efforts to promote sustainable forms of production and subsistence based on
a community approach. This activity will identify current subsistence practices in these communities and will
introduce programs designed to encourage the adoption of sustainable water and soil management practices.
Using the knowledge gained during the formulation stage of the SAP, this activity will contribute to the
protection of water and soil resources, including native fauna, particularly fish, in the natural ecosystems of
the Rio Bermejo, while at the same time helping to satisfy the demand for food, fuel and shelter in rural
communities.
Activity 3.4. Sustainable development of natural resources
Under this activity, a demonstration project will be undertaken in areas recently brought under irrigation
within the San Jacinto project area in an effort to optimize soil and water use, control soil loss in and around
areas under cultivation, and at the same time enhance the productivity of economic activities. The results of
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this experiment will be extrapolated to other zones with similar characteristics within the upper basin.
GEF: US $ 2,729,100; co-funding: US $ 2,923,100; total: US $ 5,652,200. Funding provided for this
activity will also be used to establish the Project Coordination Unit and to support the Binational Commission
for implementation of the IWRMP.
COMPONENT IV: PUBLIC INFORMATION AND PARTICIPATION.
This component embraces activities to identify and coordinate the interests of people and organizations
with economic and/or institutional responsibilities in the basin, including the agricultural and industrial
sectors. Access to information is an essential part of this process of encouraging local stakeholders to take an
interest in sound management of the basin's natural resources. To this end, a central element of this
component will be to inform the citizenry within the basin through an integrated program of environmental
education, institutional transparency, and exchange of information among communities, organizations, and
government entities.
Activity 4.1. Environmental education programs
The SAP identified the need for environmental education programs as a key element in support of sustainable
programs for protecting and rehabilitating the environment and promoting economic development. This
activity continues and extends this community focus throughout the Rio Bermejo basin. It will also contribute
to the development and distribution of curricula and materials for use in training teachers and will include
community and private sector initiatives in the scope of education programming. One element of this activity
is specifically designed to improve educational opportunities in the most vulnerable communities. Results of
this activity will not only increase awareness among communities in the basin, but will also help them, through
the local schools, to understand ways of improving their living standards and bringing about positive
environmental change at the local level. The output of the activity will include preparation of appropriate
curricula at the different educational levels, publicity materials for promoting public awareness, and materials
and manuals for use in teaching and teacher training.
Activity 4.2. Public participation program
The formulation process for the SAP has generated expectations among stakeholders in the basin, who
recognize that public participation in establishing priorities and implementing new practices is essential for
improving the management of water and environmental resources. The basic elements for ensuring the
commitment of local stakeholders are information, education, and the establishment of suitable mechanisms for
public participation. To this end, the activity will seek to stimulate public participation in environmental
management of the Rio Bermejo basin by disseminating information to communities and organizations through
a variety of means, including public hearings, community-based legislative initiatives, environmental education
courses, consultation and mobilization workshops, capacity strengthening programs, and use of the mass
media (radio, television, Internet, newspapers). This information will help to build a basic awareness so that
individuals, organizations and businesses will become engaged in the decision-making process.
Activity 4.3. Creating an information system for the Bermejo river basin
The SAP identified the need to acquire and disseminate information at two levels within the basin: technical
information among water resource professionals at all governmental levels involved in the use and
management of waters of the Rio Bermejo, and information of more general interest for the public and other
interested entities in the basin. This information will foster institutional transparency, stimulate informed
participation in community decision-making, and will help to standardize practices among professionals and
jurisdictions. A prerequisite for establishing the information system will be to identify potential sources of
information, nodes and users in the basin.
GEF: US $ 1,759,700; co-funding: US $ 2,020,200; total: US $ 3,779,900.
12. Stakeholders involved in project:
Public participation in the management of the water resources of Argentina and Bolivia was an integral feature
of the SAP formulation process and will remain an essential componenet of this project. The public was not
only consulted throughout the river basin planning process, but also actively participated in it. The effort
involved work by community level organizations, non-governmental institutions, labor unions as well as
official, local, state and federal agencies. A total of 260 consultants were hired to produce specific studies,
implement pilot demonstration projects, and collaborate in preparing the final reports. Overall, more than 70
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different institutions have directly or indirectly participated in the process. There were 12 regional workshops
or seminars involving over 1,100 participants. The seminars identified major problems, their causes and
possible solutions. Also, as a result of these workshops, a series of working groups of government, civil
society and local experts were established to accompany the SAP preparation process. A Web page was
established, which not only promoted access to a steady stream of preliminary reports and information about
study conclusions, but also facilitated an interactive discussion forum for preliminary findings and
recommendations. The principle findings identified by the public, government officials, and consultants, as
well as the experiences of the agencies and public in the conduct of the demonstration projects, are contained
within the SAP and given effect by this proposal. The Binational Commission of Argentina and Bolivia with
the support of UNEP and OAS specialists has prepared this proposal.
This high level of public and stakeholder participation will be continued during the development and
implementation of the IWRMP for the BRBB. As noted above, overall stakeholder participation in the
project, including community- and corporate-based environmental information and education campaigns,
training courses and symposia, and actions, continues to be designed to increase the capacity and future
participation of institutions, personnel, and individuals to undertake activities in support of the IWRMP.
Further, specific actions are proposed to be conducted under this project which address issues related to public
and stakeholder participation in the planning and implementation process, and/or which provide support for
the further development of a sound public participation and involvement strategy as one of the strategic actions
of the SAP implementation
13. Information on project proposer: (Local executing body)
The Binational Commission for the Development of the Upper Bermejo River and Grande de Tarija River
Basins, has been created by a Treaty, between the governments of Argentina and Bolivia, on June 9, 1995, in
Orán, province of Salta (Argentina).
This Commission, is responsible for the administration of the Upper Bermejo River and Grande de Tarija
River Basins, in order to promote sustainable development in its area of influence, optimize its natural
resources development, contribute to its socioeconomic development, and allow rational and equitable
management of water resources.
The Binational Commission for the Development of the Upper Bermejo River Basin and Grande de Tarija
River has been created as a response of the Governments of Argentina and Bolivia to the challenge of planning
the economic and social development and the environmental management of the region in a careful proper
manner leading to sustainable development. This Binational Commission has international legal status,
autonomy in technical, administrative and financial matters, and legal capacity to acquire rights and assume
obligations. The Binational Commission is totally financed by and acts on behalf of the Governments of
Argentina and Bolivia, and has been given the authority to actively pursue all the actions required for the
implementation of the present program.
(See Annex 1 for detailed information about the Commission)
14. Information on proposed executing agency (if different from above):
The Organization of American States (OAS) is the world's oldest regional organization, dating back to the
First International Conference of American States, held in Washington, D.C., from October 1889 to April
1890. The establishment of the International Union of American Republics was approved at that meeting on
April 14, 1890. The OAS Charter was signed in Bogotá in 1948 and entered into force in December 1951.
Subsequently, the Charter was amended by the Protocol of Buenos Aires, signed in 1967, which entered into
force in February 1970; by the Protocol of Cartagena de Indias, signed in 1985, which entered into force in
November 1988; and by the Protocol of Managua, signed in 1993, which entered into force in January 1996.
In 1992, the Protocol of Washington was signed; it will enter into force upon ratification by two thirds of the
member states. The OAS currently has 35 member states. In addition, the Organization has granted Permanent
Observer status to 39 states and to the European Union.
The basic purposes of the OAS are as follows: to strengthen the peace and security of the continent; to
promote and consolidate representative democracy, with due respect for the principle of nonintervention; to
prevent possible causes of difficulties and to ensure the pacific settlement of disputes that may arise among the
member states; to provide for common action on the part of those states in the event of aggression; to seek the
solution of political, juridical and
economic problems that may arise among them; to promote, by cooperative action, their economic, social and
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cultural development, and to achieve an effective limitation of conventional weapons that will make it possible
to devote the largest amount of resources to the economic and social development of the member states.
Organizational Structure: the OAS accomplishes its purposes through the following organs: the General
Assembly; the Meeting of Consultation of Ministers of Foreign Affairs; the Councils (the Permanent Council
and the Inter-American Council for Integral Development); the Inter-American Juridical Committee; the Inter-
American Commission on Human Rights; the General Secretariat; the Specialized Conferences; the
Specialized Organizations; and other entities established by the General Assembly. The General Secretariat is
the central and permanent organ of the OAS. The headquarters of both the Permanent Council and the General
Secretariat is in Washington, D.C.
Leadership: Mr. César Gaviria, Secretary General
Membership: Member States: Antigua and Barbuda, Argentina, Bahamas (Commonwealth of), Barbados,
Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominica (Commonwealth of),
Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica,
Mexico, Nicaragua, Panama, Paraguay, Peru, St.Kitts and Nevis, Saint Lucia, Saint Vincent and the
Grenadines, Suriname, Trinidad and Tobago, United States, Uruguay, Venezuela.
Recent Programs/Projects/Activities: The GS/OAS, through the Unit of Sustainable Development and
Environment (USDE) (see Annex 2 for detailed information), is acting as executing agency for UNEP/GEF
International Waters Projects: (1) Brasil: Implementation of Integrated Watershed Management Practices for
the Pantanal and Upper Paraguay River Basin (UNEP), $6.6 million, (2) Brasil: Integrated Management of
Land-based activities in the Sao Francisco Basin (UNEP), $4.7 million, and (3) Costa Rica/Nicaragua:
Strategic Action Program for the Binational Basin of the San Juan and its Costal Zone (UNEP), $4 million
pending endorsement.
15. Estimated budget (in US$): For 4.5 years
GEF: US$ 9,621,000 (including Adminstrative , and Monitoring and Evaluation costs)
Co-financing: US$ 8,529,000 (including UNEP and GS/OAS co-financing)
TOTAL:US$ 18,150,000
Associated Financing: US$ 884,530,000 (Argentina) US$ 111,250,000 (Bolivia)
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ANNEX 1
AGREEMENT FOR THE MULTIPLE DEVELOPMENT OF THE RESOURCES
OF THE UPPER BERMEJO AND GRANDE DE TARIJA RIVERS BASINS
CREATION OF THE BINATIONAL COMMISSION
The Governments of the Argentine Republic and the Republic of Bolivia, pursuant to Article 6 of
the Plata River Basin Treaty, which provides for the signing of specific agreements, and in
keeping with the, provisions and decisions issued by the bodies of the system,
AGREE AS FOLLOWS:
ARTICLE 1: PURPOSES
a.
To establish a permanent legal and technical mechanism responsible for managing the Upper
Bermejo and Grande de Tarija Rivers Basins so as to achieve the sustainable development of its
area of influence, optimize the use of its natural resources, generate employment, attract
investment. and provide for rational and equitable use of its water resources.
b.
In keeping with the overall purposes specified in the foregoing paragraph, the parties, through
this agreement, seek to improve water use to meet such needs as home, consumption, generation
of electricity, irrigation, flood control, harvesting of fish stocks, and industrial and recreational
uses. The foregoing list is not intended to establish an order of priority for use of water.
c.
In making such use of water resources, the parties shall decide upon the methods of operation of
the works to be executed and shall adopt the necessary measures to preserve water quality,
prevent erosion, and control sedimentation and flooding.
d.
The parties shall accord special priority to the involvement of private capital in the pursuit of
these purposes; to that end they may apply an agreed procedure establishing a system of
concessions for the construction, maintenance, and management of the projects.
ARTICLE II: THE COMMISSION
The parties hereby establish a Binational Commission for the Development of the Upper Bermejo,
and Grande de Tarija Rivers Basins, hereinafter referred to as "the Commission."
ARTICLE III: COMPOSITION
a. The Commission shall be composed of two delegates from each member state. The first two all
shall be representatives of the two foreign, ministries, of ambassadorial rank, and shall preside
over their delegations. The second two shall be, respectively, the National Director of the
Pilcomayo and Bermejo Rivers for the Republic of Bolivia and the Chair of the Board of the
Regional Commission of the Bermejo River for the Argentine Republic.
b. The Regional Commission of the Bermejo River-COREBE-of the Argentine Republic and the
National Technical Officer. of the Pilcomayo and Bermejo Rivers of the Republic of Bolivia will
serve as secretariat to the Commission
ARTICLE IV: LEGAL STATUS
The Commission shall have international legal status, autonomy in technical, administrative, and
financial matters. and legal capacity to acquire rights and assume obligations. It may also, with
any other legal person, execute the necessary legal documents and contracts for the performance
of its functions.
ARTICLE V: COMPETENCE
a.
The purpose of the Commission is to take all steps necessary for the development of the Basin as
defined in this agreement. Once formed, the Commission shall issue its own internal rules of
procedure.
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b.
The Commission may negotiate with interested investors, from the prefeasibility stage the
technical, economic, financial and legal project conditions for the drafting of definitive
specifications to be used in awarding the concessions involved.
a.
The Commission shall have authority over the joint projects regardless of the territory in which
they are located. These works shall be governed by supplementary agreement between the parties,
which shall give technical specifications concerning their design, construction, administration,
and use. These agreements shall have the rank of supplementary protocols of executive treaties
within the framework of this treaty, and, therefore, may be executed by way of instruments that
shall enter into force immediately upon signature.
b.
The Commission shall establish physical, chemical, and biological parameters for water quality
control in keeping with international standards.
ARTICLE VI: FUNCTIONS
The Commission shall carry out the following functions:
a. Design, install, operate, and maintain a network of hydrometeorology stations for operation of a
real-time hydrologic warning system;
b. Identify sustainable development programs;
c. Select projects to be carried out in the waterways on the basis of environmental impact
assessments (ElAs);
d. Draft the terms of reference for the programs and projects to be carried out;
e. Arrange funding for the studies and projects selected and non-reimbursable technical cooperation
agreements with international organizations;
f.
Issue an international call for bids on prefeasibility and feasibility studies, the procedures for
which shall be established by the Commission;
g. Screen firms. Advisers, technical personnel, and consortia for preliminary and definitive
qualification;
h. Award contracts for water resource studies, programs, projects, and works;
i.
Grant concessions for the execution and use of the planned works and projects, without
government guarantees or endorsements:
j.
Sign the bidding documents and concession contracts with the firms and consortia selected;
k. Supervise execution of the projects and works awarded and fulfillment of concession provisions;
l.
Decide upon fees, royalties or tolls to be charged by the concessionaires;
m. Issue regulations to govern the matters within its purview;
n. Contract for the services necessary for fulfillment of the objectives of this agreement;
o. Approve the planning and design of bridges, duets, and other structures that cross the rivers and
could affect the use, water flow, and navigation of those rivers;
p. Facilitate. activities that promote tourism and recreational use of the waters;
q. Specify areas in which there shall be no resource extraction that would affect the hydraulic and
morphologic behavior of the rivers;
r.
Propose regulations to govern the discharge of any kind of pollutant;
s.
Compile and update the information required for creation and maintenance of a databank under a
geographic. Information system;
t.
Fulfill such other functions as may arise from the agreement and as the parties may expressly
confer in supplementary agreements.
ARTICLE VII: BUDGET
The Commission shall approve its annual budget, the funding of which shall be governed in
accordance with the Statutes.
It shall also submit each year to the foreign ministries of the member States a general activities report
along with a corresponding statement of accounts.
ARTICLE VIII: CONTRACTS
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a. In its concession contracts, the Commission may stipulate the applicable legislation and
jurisdiction. It may not invoke any Immunity from jurisdiction that it may enjoy.
b. The provisions of the foregoing paragraph shall also apply to any other public or private contracts
that may be entered into by the Commission.
c. When signing employment contracts with its staff, the Commission shall specify the judicial
system that shall have jurisdiction over labor matters associated with said contracts.
ARTICLE IX: HEADQUARTERS
The Commission shall have two headquarters: one in the city of Tarija, Republic of Bolivia, and
the other in the city of Buenos Aires, Argentine Republic.
ARTICLE X: MEETINGS
The Commission shall meet in either of the countries without distinction. It shall hold its
meetings with the frequency and in the manner established in the Statutes and shall adopt its
decisions unanimously.
ARTICLE XI: TAXES AND CHARGES
Taxes and charges shall be covered in a specific agreement between the parties.
ARTICLE XII: HYDROPOWER GENERAT10N
a. Power produced by the hydroelectric power plants built on Bolivian soil, subject to agreement
between the. parties, may be sold on the Argentine market under the same conditions as for power
produced in the Argentine Republic.
b. No legal or administrative provision shall be required for this clause to be implemented.
c. Anyone constructing hydraulic works in the upper part of the Basin may agree with the parties, or
with each of them, as appropriate, to set aside throughout the year or during certain months
capacity to accumulate water during high water periods to mitigate their negative effects
downstream.
ARTICLE XIII: SETTLEMENT OF DISPUTES
a.
Any disputes between the parties not settled through direct negotiations shall be solved pursuant
to the special dispute settlement procedure agreed upon by the parties as appropriate.
Alternatively, the arbitration treaty between the Republic of Bolivia and the Argentine Republic,
signed in Buenos Aires on February 3, 1902 shall apply.
b.
The dispute settlement procedure between the Commission and its dependents, concessionaires,
and other persons who may have entered into contracts with it and with third parties by virtue of
other legal relationships may be proposed for approval by the Commission by means of an
agreement between the parties. This procedure shall be proposed to the parties within 90 days of
establishment of the Commission.
ARTICLE XIV: FINAL PROVISIONS
This agreement shall be ratified by the parties and shall enter into force 30 days following the
exchange of the respective instruments of ratification.
The Commission shall be established within 60 days of the date of signature of this agreement.
The parties shall adopt, by means of an exchange of notes, the Statues of the Commission within
180 days of the date of entry into force of this agreement.
In witness whereof, two identical copies are signed in the city of San Ramon de a Nueva Oran on
the ninth day of the month of June, 1995.
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Annex 2
Unit of Sustainable development and Environment (USDE) of the GS/OAS.
Formed in 1963, the Unit for Sustainable Development and Environment (USDE) is the principal
technical arm of the OAS General Secretariat for responding to the needs of member states on
matters of sustainability and environmental preservation within an economic development context.
Technical issues addressed by the USDE include transboundary management of water resources,
reduction of vulnerability to natural hazards, public participation in decision-making, climate
change/sea-level rise, coastal zone management, renewable energy planning, and biodiversity.
The objectives of the Unit are: (i) to provide support, in areas of its technical expertise, to the
political organs of the OAS, and to represent the General Secretariat in technical dialogues in the
hemisphere and in intergovernmental environmental fora convened primarily under the auspices of
the United Nations; (ii) To formulate and execute technical cooperation projects within its field of
expertise, including follow-up of the mandates of the Summit of the Americas on Sustainable
Development; (iii) to facilitate exchanges of information related to sustainable development in the
region and build a basis for the participation of civil society in environmental management
decision processes.; (iv) to assist countries and regions in preparing investment projects for
consideration by regional and international financing mechanisms; and (vi) to support efforts to
promote coordination and cooperation among bilateral and international agencies and non-
governmental organizations in pursuit of the goals established by the member states of the OAS.
Areas of Action:
§ Water Resources. In conformity with the mandates of OAS member states, the USDE is
engaged in several projects on transboundary water resource management in partnership with
the UN Environment Programme (UNEP), the World Bank, and the Global Environment
Facility (GEF) in major river basins of South and Central America. The Unit is the
secretariat for the Inter-American Water Resources Network (IWRN) and serves on the
Board of Governors of the World Water Council. USDE is also collaborating with the Pan
American Health Organization to organize an inter-American conference on the link between
water and health.
§ Climate Change/Coastal Zone Management The USDE is the executing agency of the four-
year (1997-2001) Caribbean: Planning for Adaptation to Global Climate Change (CPACC)
project, being carried out with a grant from the GEF, through the World Bank. The purpose
of the project is to support twelve Caribbean Community (CARICOM) countries and regional
institutions in an effort to cope with the adverse effects of climate change, particularly sea-
level rise, in coastal and marine areas through vulnerability assessment, adaptation planning,
and capacity building.
§ Public Participation. USDE coordinated the formulation of the Inter-American Strategy for
the Promotion of Public Participation in Decision-Making for Sustainable Development
(ISP), funded by the OAS, GEF/UNEP, USAID, and UNESCO. The formulation effort
culminated on December 1999, when the Permanent Executive Committee of the Inter-
American Council for Integral Development approved the ISP Policy Framework and the
annexed Recommendations for Action. At the behest of the OAS member states, the USDE is
currently undertaking the design and execution of an ISP implementation support program.
§ Natural Hazards Since 1983 the USDE has been providing technical support to reduce
vulnerability to natural hazards and thus avoid disasters or mitigate their effects. Its
activities--assistance with policy formulation, hazard and vulnerability assessments, training
12
in disaster mitigation techniques, and formulation of mitigation measures for development
investment projects--are generally carried out as part of ongoing technical cooperation
programs with collaborating national, regional, and international institutions. The USDE has
also undertaken a series of sector-specific vulnerability reduction studies at a national level
for agriculture, education, energy, transportation, trade corridors, tourism, and urban
lifelines, with collaboration from the World Bank, IDB, Caribbean Development Bank, the
UNDP and other UN specialized agencies, and bilateral donors, such as USAID's support for
the Caribbean Disaster Mitigation Project (CDMP).
§ Renewable Energy. The Unit serves as the Technical Secretariat for the Renewable Energy
in the Americas (REIA) Initiative. It is also active in providing technical assistance for
sustainable energy project development and facilitating appropriate financing for projects.
The REIA initiative offers government officials access to information on renewable energy
and energy efficiency technologies, while serving as a point of contact for the private sector
into the energy sector in the Americas. REIA carries out institutional and technical capacity
building programs, and sponsors periodic conferences and workshops on sustainable energy
technologies, including the REIA2000: Hemispheric Conference and Exposition.
§ Support to the Summits of the Americas Process. The USDE chairs and provides technical
support to the Inter-Agency Task Force (IATF) on Bolivia Summit Follow-up, which is made
up of members of 15 development-related organizations of the UN and inter-American
systems. The Unit also provides secretariat services for the Inter-American Forum on
Environmental Law (FIDA), ISP, IWRN and REIA, and is involved in the implementation of
specific mandates directed at the OAS in the Bolivia Summit Plan of Action; the identification
of means of strengthening public and private financing for sustainable development; and
providing technical support to the Inter-American Biodiversity Information Network (IABIN).