ABSTRACT
Water management in Chile has undergone a series of reforms in recent years directed towards increasing the role of the private sector in management: an innovation which somewhat marks off that country from the rest of the region. The case study of the River Limari reflects, therefore, the relatively radical reform of water management policies which has occurred. The Limari basin has been developed in recent years largely for irrigation, and it is one of the few in Chile with extensive structures built specifically to supply water for irrigation agriculture. Other demands on the water resources of the basin are very much of secondary significance.
Water Use in the River Limari Valley. The River Limari basin lies some 400 km to the north of Santiago. The basin has a semi-desert type climate with relatively moderate temperatures. The natural vegetation consists of shrub with larger varieties close to the watercourses. Further inland there are large areas of xerophytic vegetation, including cactus.
The 13,461 km2 of the basin varies in relief from the 3,000 metre high peaks of the Andes, with narrow rocky valleys occupied by mountain torrents, through small "interior" valleys to the llanos and terraces of the central part of the basin and continues to the sea. It is on these terraces that the bulk of the population and the main agricultural area are found.
The water system of the valley consists of the River Limari and its main tributaries, the Grande, Hurtado and Huatulame. On each of these principal watercourses, a water control structure has been built. Together, this complex of structures and canals forms the Paloma 132hydrological system. The system is divided into three interrelated subsystems. These are:
The Recoleta subsystem which consists of a reservoir on the River Hurtado, six main distributor canals, and the corresponding secondary network. The dam, put into service in 1934, was the first compacted earth walled dam built in Chile. Some 14,000 hectares are irrigated.
The Cogoti subsystem formed from the Cogoti reservoir and dam on the River Huatulame, one main canal and the appropriate secondary distribution network. The Cogoti reservoir, built between 1935 and 1940, was designed to hold the winter rains until the following growing season. The area irrigated is approximately 10,000 hectares.
The Paloma subsystem which includes the reservoir and dam constructed on the River Grande, and main and secondary distribution canal networks. The Paloma subsystem was built as a unit in the 1960s and is the newest and largest single irrigation work in Chile. Its functions are first, to act as a means of inter-annual storage of the flows on the River Grande and, second, to assist in the seasonal regulation functions of the Recoleta and Cogoti reservoirs. The area directly served from the Paloma reservoir is more than 24,000 hectares.
In addition to the irrigated areas below the dams, there are more than 10,000 hectares in the upper watersheds supplied from direct diversions or from local rainwater collection and storage. The supply of water to these small areas of irrigation in the upper tributaries does not compete with the lower basin demands as the water supplied would otherwise be lost.
Other water uses in the basin are restricted to a small hydroelectric plant on the River Los Molles and water supply and waste transport for the urban centres. The small scale of these demands eliminates any significant conflict of interests with the dominant irrigation demand.
The main agricultural products of the basin are fruit, vegetables and alfalfa. The main directions of growth lie in the production of table grapes, for export, and tomatoes and other vegetables. For example, the area under table grapes has doubled in the last five years.
Water Management in the Limari Basin. The management of the water resource system in the Limari basin is characterized by the importance of the role played by the private sector, although in the Limari basin the public authorities have maintained a larger presence than in other basins in Chile.
133Under the modifications introduced to the Water Code in Chile, promulgated in August 1981, the direct function of the State in water management is limited to the original granting of the water right which, once granted, becomes a private good freely traded on the market. There are, however, various restrictions imposed by other areas of legislation on the exercise of the private right to use water.
In the Limari basin, the most important water management institutions are the user groups: the Comunidades de Aguas, the Asociaciones de Canalistas, and the Junta de Vigilancia. 1 The authority and responsibility of these user groups increases from the comunidades to the Juntas which are responsible for the management of the natural water bodies. The owners of water rights are obliged to form user associations to manage the resource. The associations elect a directorate, appoint staff where appropriate, and have the right to charge a tariff to meet the costs of operation. In addition the Junta de Vigilancia can, in times of drought, restrict the right to use water and redistribute the supply among users.
The public agencies retain some water management responsibilities. Those active in the basin include the Water Directorate of the Ministry of Public Works responsible for the granting of water rights, the Irrigation Directorate, responsible for the operation of the Paloma dam and a number of public agencies which are major water users, such as the National Water Supply and Sewerage Service (SENDOS), and State-owned electric power companies, but these are being transferred to the private sector. In addition, there are various public agencies responsible for policy in water related areas, such as the National Planning Office (ODEPLAN) and the National Commission for Irrigation, but these do not have local operations.
In the Limari basin, the reformed system of water management is, therefore, in fall operation with one major qualification. The Recoleta and the Cogoti reservoirs and their related canal systems belong to and are operated by their respective associations of users, Asociaciones de Canalistas, and there is a Junta or committee, for the whole Paloma system. These associations have their own technical staff The Paloma subsystem, however, is still managed by the Irrigation Directorate although in close collaboration with the users. The committee or Junta for the entire Paloma system can only have provisional status because of this anomaly.
Each of the user associations is financially independent and must cover the costs of operation through user charges. The total cost of operating the system in 1985 was some 150 million Chilean pesos (US$814,000). The highest expenditures were for the operation of the Paloma subsystem (Table 6.1). In general, the annual operating costs <target id="page_134" target-type="page">134</target>Operational Expenditures, Limari-Paloma System, 1985 Organization Expenditure (millions of Chilean pesos) % Total Limari Paloma System 150.6 100.0 Paloma Subsystem 102.3 68.0 Reservoir administration 78.1 51.9 “Junta de vigilancia”, Grande and Limari 19.4 12.9 Camarico canal users' association 4.8 3.2 Recoleta Subsystem 25.5 16.9 Recoleta reservoir users' association 25.5 16.9 Cogoti Subsystem 22.8 15.1 Cogoti reservoir users' association 20.4 13.5 Punitaqui canal user's association 1.3 0.9 “Junta de Vigilancia”, Huatulame River 1.1 0.7
Source: Based on information provided by the different organizations.
are met from tariffs, but longer term maintenance requirements and new capital expenditures have not been incorporated in the calculation of the tariffs in the Limari basin. In the Paloma system, however, the operating costs are being met by the Directorate and the cost of water is not charged to the users.The Effectiveness of Water Management in the Limari Basin. In the Limari basin, as in other irrigated areas of Chile, a notable intensification of agricultural production is taking place. Paradoxically, this is being accompanied by a reduction of water use due to lower water demands from the new crops, especially compared with alfalfa, and an increase in the efficiency of water use at the farm level.
The production of table grapes, in particular, and of vegetables demands a heavy investment in land preparation, and this is often accompanied by the adoption of improved methods of water application, including drip irrigation.
135The improvement in water use efficiency at the farm level has not been accompanied by a similar improvement in the efficiency of the operation of the water structures. In the basin, the Recoleta and Cogoti subsystems show high water losses from leakages at the dams. It is estimated that at the Recoleta dam 30% of the water stored is lost through filtering. There are also losses in the distribution system. The capacity of the users to tackle these problems is restricted through the reluctance to raise tariffs. This reluctance is underlined by the difficulties encountered in the Recoleta subsystem in attempting to introduce a tariff more closely related to use.
In part, the inefficiencies observed in the operation of the Limari-Paloma water system have been inherited from the past, and are a reflection of the relative neglect of the agricultural sector in Chile for the last half century, but in part they exemplify the problems to be anticipated when major reforms are made in public policy. The user associations have been given a new and much more significant role in water management and this new role has yet to be properly assimilated and understood. At the same time, the actions of the government have changed and the new direction of public intervention, too, has yet to be consolidated.
The main thrust of public action for irrigation now occurs through the National Irrigation Commission, not the Irrigation Directorate which is only responsible for the administration of the few remaining irrigation systems in the public sector and the evaluation of potential projects. The Commission, established in 1983, is responsible for the definition of present policy and is charged with the management of the Law for the Promotion of Irrigation which provides subsidies (75% of the cost) to the private sector for the improvement of existing works or the construction of new projects. The first invitation for the presentation of projects under this law was only made in 1986 and few projects have as yet received support. The existence of the subsidy machinery has awakened considerable interest amongst the water user associations.
In the Limari basin, there has been considerable interest in the possibilities provided through the new policy, and the Recoleta association has presented three projects for canal improvements, while the Cogoti association is also preparing projects. The other water user groups are also studying the possibilities provided by the new legislation. The national association of water user associations criticizes, however, the excessive paperwork, the rather restricted funding available, and the continuing existence of irrigation systems (such as the Paloma subsystem) where the users have not been granted water rights. Despite these restrictions, it is undeniable that the initiative is a laudable one and will probably be very successful if the evidence from other sectors 136of the economy where similar policies have been applied for some time (forestry, for example) is any guide.
