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Fund for Protection of Water .:. Sustainable Development Knowledge Platform

Information
  • Location: Ecuador
  • Sectors:
  • By: Ecuador
  • Type: National
  • Source: World Resources Institute (2011) A Compilation of Green Economy Policies, Programs, and Initiatives from Around the World. The Green Economy in Practice: Interactive Workshop 1, February 11th, 2011
  • Year: 2000
  • More information
Fund for Protection of Water
Fund for Protection of Water (FONAG) was established in 2000 as a trust fund into which water users in Quito, Ecuador, could contribute to support watershed conservation and management activities to protect and enhance the urban water supply. Since its creation, over ten other water funds have been or are being established in the region as well as in Peru and Mexico.


Fund for Protection of Water (FONAG) was established in 2000 as a trust fund into which water users in Quito could contribute to support watershed conservation and management activities to protect and enhance the urban water supply. The Fund constitutes a Payment for Environmental Services scheme, in which local water users, including the water utility, and power company, contribute regularly under a self-taxing arrangement. Since the creation and success of FONAG, over ten other water funds have been or are being established in the region as well as in Peru and Mexico.
The fund Improved access to water. More than 1800 people are estimated to receive increased economic benefits associated with watershed management and conservation. Over 65,000 hectares of watersheds are under improved management. It also increased market opportunities for water quality initiatives.


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