WATER SECURITY

DIAGNOSTIC

Argentina
Valuing Water
About the Water Global Practice
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Argentina
Valuing Water
©2021 International Bank for Reconstruction and Development / The World Bank
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 iii

Contents

Foreword ix

Acknowledgments xi

Executive Summary xiii

Abbreviations xxv

Chapter 1: Introduction 1
Economic and Demographic Context 1
Water Shaping Argentina’s Socioeconomic Profile 3
Water Security as a Growing Global and Regional Challenge in Latin America and the Caribbean 4
Motivation 5
Notes 8
References 9

PART 1: WATER AS AN ESSENTIAL GOOD FOR ARGENTINA’S SUSTAINABLE DEVELOPMENT

Chapter 2: Economic, Social, and Environmental Outcomes 13

Economic Outcomes 13
Social, Health, and Distributive Outcomes 22
Environmental Outcomes 28
Notes 34
References 37

PART 2: WATER SECTOR DIAGNOSTICS

Chapter 3: Natural Water Capital and Water Demand in Argentina 45

Water Distribution 45
Climate Variability and Extreme Events 50
Water Demand and Water Balances 55
Notes 58
References 58
 iv Argentina: Valuing Water

Chapter 4: Water Sector Architecture 61

Governance 61
Infrastructure Stock and Financing 72
Notes 84
References 88

Chapter 5: Water Sector Performance 93

Water Resource Management 93
Mitigation of Water-Related Risks 96
Water Service Performance 106
Notes 111
References 113

PART 3: THE WAY FORWARD

Chapter 6: Water Security Trajectories 119

Analysis of the Business as Usual and Active Scenarios 120
Aggregate Impact 124
Notes 126
References 128

Chapter 7: Recommendations 131

Water Governance: The Enabling Environment 131
Water Infrastructure 143
Notes 145
References 145

Figures
1.1 GDP Structure, 2018/2019 2
1.2 Total Renewable Freshwater per Capita in Selected Latin American Countries, Including External
Contributions 6
1.3 Water Security: Conceptual Framework 7
1.4 Logical Flow of the Report 8
2.1 Area under Irrigation, by Province, and Crops under Irrigation 14
2.2 Area Planted, by Region, and Crops Produced by Rainfed Farming, 1970­–2018 15
2.3 Water Use in Industry, Excluding Energy 16
2.4 Energy by Type of Generation in Argentina, and Hydropower as a Share of Electricity Generation in Selected
Latin American Countries and the World 18
2.5 Installed Hydropower Capacity Greater than Five Megawatts, 1950–2019 18
2.6 Continuity of Water Network Service for Businesses 20
2.7 Planted and Harvested Area and Yield for Rainfed Farming, and Production of Argentina’s
20 Main Crops, 1970–2018 21
 v

2.8 Human Capital Index and the Coverage of Improved Sanitation and Improved Drinking Water 22
2.9 Disability-Adjusted Life Years from Diarrhea due to Inadequate Water and Sanitation in Selected Countries,
per 100,000 Inhabitants 23
2.10 Population without Access to the Drinking Water Network and Sewerage Network, by Income Quintile 25
2.11 Flood Impacts on Social Sectors, by Income, 2018 25
2.12 Urban Population Affected by Floods, by Income Quintile, April 2017–March 2018 26
2.13 Limitations on Recreational Use of La Plata River due to Water Degradation, by Income Quintile 26
3.1 Paraguay River Flow in Puerto Pilcomayo, 1910–2017, with 10-Year Moving Average 51
3.2 Annual Rainfall at Seven Stations Distributed throughout Argentina, and 10-Year Moving Averages,
1960–2017 52
3.3 Maximum 24-Hour Rainfall, 1935–2017 53
3.4 Number of Rains Heavier than the 90th Percentile, 1968–2017 53
3.5 Average Annual Sea Level at the Buenos Aires Mareograph,1905–2018   53
3.6 Drought in Areas of High Rainfed Agricultural Production (Buenos Aires, Córdoba, and
Santa Fe), 1980–2018 55
3.7 Cumulative Distribution of Months of Drought (SPI<-1) for Selected Provinces, Average Value by Province,
1980–2017 55
3.8 Aggregate Demand Today and in 2030 57
3.9 Water Demand and Surface Water Supply, Current and Business as Usual Scenario, Incorporating Climate
Change 57
4.1 Institutions Responsible for Water and the Environment   63
4.2 Timeline of Provincial Water Laws and Codes   63
4.3 Timeline of Key Reforms and Drivers 68
4.4 Coverage of Water and Sewerage Services in Greater Buenos Aires, and Location of Social Housing
Projects 71
4.5 Actual and Target Irrigation Efficiency, by Province 76
4.6 Investments Needed to Increase Irrigation, by Province 79
4.7 Water and Sanitation Coverage, 2018, by Province   81
4.8 Government Water and Sanitation Spending, 2004–18 83
4.9 Average Annual Federal–Provincial Transfers for Water Supply and Sanitation per Noncovered Person,
2016–18, and Provincial GDP per Capita, 2004 83
4.10 Water and Sanitation Spending, by Province, 2017 84
5.1 5-Year Floods: Departments, by Area Exposed and by Population Exposed 99
5.2 Spatial Analysis of Flood Exposure in the Matanza Riachuelo Basin 99
5.3 Evolution of the Participation of Annual and Perennial Crops and the Evolution of the Water Table Level in
Marcos Juárez, Córdoba, 1970–2015 101
5.4 Monthly Evapotranspiration Rates by Land Use—Natural Vegetation Cover, Soy Only, Wheat Only, and
Combined Soy and Wheat 101
5.5 Annual Losses Projected as Climate Change Impedes Irrigation 102
5.6 River Basins Providing Hydropower in Argentina and Uruguay 104
5.7 Hydroelectric Generation in Argentina and Uruguay, 2002–18 104
5.8 Access to Piped Water (Upper Panel), and to Sewerage and Wastewater Treatment (Lower Panel) in Latin
America 106
 vi Argentina: Valuing Water

5.9 Fecal Waste Flow Diagram, 2018 107

5.10 Piped Water Continuity and Quality Service Indicators—Main Providers 108
5.11 Piped Water Service Operating Performance Indicators—Main Providers 108
5.12 Employees per 1,000 Drinking Water Connections, Argentine and Other Reference Latin American
Providers 110
5.13 Possible Utility Efficiencies and Investments 110
6.1 Net Benefits of Water and Sewerage Services, Expressed in Months of per Capita Income According to
Quintiles 121
6.2 Soybean Yield Increases with Complementary Irrigation 122
6.3 Comparison of Water Security Scenarios in Terms of Investments and Impacts on GDP 127
7.1 Recommendations and Associated Infrastructure Measures 132
7.2 Water Investments 133

Maps
1.1 Argentina’s Regions and the Buenos Aires Metropolitan Area 2
1.2 Drought Severity and Flood Occurrence in South America 5
2.1 Paraguay–Paraná–de la Plata Waterway (Hidrovía) 17
2.2 Drinking Water and Sewerage Coverage, Infant Mortality, and Low Birthweight 23
2.3 Flooded Area, by Department, and Risk of Dengue, 2020 24
2.4 Average Value of Ecological Services (Left), Potential Area Occupied by Wetlands (Center), and Forest Regions
(Right) 28
2.5 Land Productivity Dynamics 30
2.6 Sea Level Rise and Coastal Flooding, 2100 Projections 31
2.7 Pesticide Impact, by Area, Annual Nitrogen Exports, Annual Phosphorus Exports, and Main Crop Production,
2016–17 32
2.8 Chlorophyll Concentration in the Northeast and Central Regions 33
2.9 Arsenic Concentration in Water, by Department 33
3.1 Transboundary Water Resources (Surface Water and Groundwater) 46
3.2 Annual Rainfall and Direct Water Balance in Argentina 47
3.3 Surface Water Basins of Argentina and Provincial Limits 47
3.4 Macrobasins Used to Measure Water Balances 48
3.5 Rainfall Volume and Surface Water Balance, by Macrobasin 48
3.6 Temperature Increases, Emissions, and Annual Rainfall 49
3.7 Surplus Water, by Macrobasin, under Three Climate Change Scenarios 50
3.8 Temperature and Rainfall Changes, 1961–2018 51
3.9 Probability of Meteorological Drought, by Department 54
3.10 Population Density by Province, 2018, and Major Irrigation Locations and Area Irrigated per Province,
2015 56
4.1 Interjurisdictional River Basin Entities 65
4.2 Main Dams and Macrobasin Reservoir Capacity, Installed Power, and Average Production 72
4.3 Multipurpose Projects and New Hydroelectric Plants Identified in the 2016 National Water Plan and Included
in the Energy Scenario by 2030 73
 vii

4.4 Active Stations of the National Hydrological Network and the National Meteorology Service (Left), and the
National Meteorological Radar Network (Right) 74
4.5 Internal Rates of Return for Complementary Irrigation Expansion 77
4.6 Growth of Area to Be Cultivated due to Increased Irrigation, by Province and Region 77
4.7 Projects Identified by the National Irrigation Plan for New Irrigated Areas 78
4.8 Improving the Hidrovía 80
4.9 Piped Water and Sanitation Coverage and Population Density in Argentina by Department and in the
AMBA 82
5.1 Locations Exposed to 5- and 100-Year Floods (Pluvial and Fluvial) 97
5.2 5-Year Floods: Area and Percentage of Population Exposed, and Index of Social Vulnerability to Disasters for
Argentina and the Buenos Aires Metropolitan Area 98
5.3 Agricultural Production Areas and Areas Flooded by 100-Year Floods 100
5.4 Road and Rail Networks and 100-Year Floods 100
5.5 Departments with a High Probability of Drought and Agricultural Production Areas 102
5.6 Unusual Precipitation Patterns (mm) in the La Plata Basin, September 2019–April 2020 105

Tables
2.1 Cost of the Water Security Gap 19
4.1 Options for Deepening the Hidrovía 79
4.2 Access to Piped Water and Sewerage Services 81
5.1 Production of Drinking Water in the Provinces with Greater Water Stress 103
5.2 Financial Performance Indicators—Main Providers 109
6.1 Scenarios for Two Water Security Strategies to 2030 120
6.2 Investment for Universal Water Supply and Sanitation Coverage, Active Scenario 121
6.3 Complementary Irrigation in Rainfed Agriculture 122
6.4 Effect of the Active Scenario on Rainfed Agricultural Production 122
6.5 Costs and Benefits of Investments in Irrigated Agriculture 123
6.6 Impacts of Interventions on the Irrigated Agricultural Sector 123
6.7 Projected Impact of Improving the Hidrovía 125
6.8 Sectoral Impacts on Annual GDP by 2030 of the Business as Usual and Proactive Scenarios 125
6.9 Long- and Short-Term Socioeconomic and Fiscal Impacts of Water Infrastructure 126
Foreword

T
he world faces an acute water crisis. Sixty percent national agenda for climate change adaptation as it is
of the world population lives in water-stressed widely recognized in the second Nationally Determined
basins with three in ten people lacking access to Contributions report recently issued by the Argentinian
safely managed water. More than half of the world government. According to World Bank research on
aquifers are past sustainability tipping points. Climate the economic and social cost of climate change, in
change is increasing the frequency and severity of some provinces 1.5 percent of the population fall into
floods and droughts. Securing water for current and poverty after major flooding, and this study found that
future generations—for consuming, for navigating, for this phenomena costs Argentina US$ 1 billion on an
agriculture production, for industry and mining—is one annual basis, which increases in 60 percent if not only
of the foremost challenges of our age. assets, but also wellbeing losses are considered.
Argentina, a country dependent upon its vast natural While flooding impacts rural and urban populations
resources, is facing its own water security challenges. alike, the agriculture sector, one Argentina’s engines
Recurrent floods and droughts impact people and of economic growth and an important contributor to
the economy in significant ways. 17 percent of the fiscal accounts, is particularly vulnerable to drought—a
country’s population lack access to safely managed dependency that is worsening as a result of climate
water and more than double lack access to safely change. Between 2010 and 2019, agriculture and
managed sanitation services. This serious service gap fishing represented more than 8 percent of GDP
affects mostly the poor and vulnerable in peri-urban and about 60 percent of the country’s exports. The
areas. Water quality problems pose risks to public impact of droughts are not only significant on national
health and the environment, and climate change is accounts, they are costly at the provincial level. For
increasing the stress over the resource. the Provinces of Buenos Aires, Santiago del Estero,
Entre Ríos, Santa Fe and Córdoba, a 10 percent drop
And at the same time water is central to Argentina´s
in productivity because of drought represents a
sustainable and inclusive development. It is vital for
0.7 percent drop in the GDP.
the country´s human capital, while playing a key role in
strategic economic sectors such as soy, rice and wine, The COVID-19 pandemic has also highlighted the need
hydropower, tourism, mining, and river navigation. It to invest in water supply and to expand services,
is for this reason that water is a central element in the prioritizing those that need it the most. In this
 x Argentina: Valuing Water

regard, the “Valuing Water” report is aligned with the The 2000 World Bank report, Argentina Water
Government´s efforts to attend to the most urgent Resources Management – Policy Elements for
needs of the country’s vulnerable populations by Sustainable Development in the [21st Century
recognizing the role of water in addressing basic socio- constituted a key milestone in advancing Argentina’s
economic inequalities. water agenda by informing the Guiding Principles
for Water Policy – Principios Rectores de Política
The World Bank´s priority of supporting a sustainable
Hídrica - that were approved in 2003. With the same
return to growth in Argentina also places water at
spirit, this latest report helps to further develop the
the center of the policy dialogue. Solving the water
water agenda in Argentina by identifying a series
crisis will require (i) sustaining and protecting water
of investments and policies that are necessary to
resources; (ii) delivering inclusive and efficient
increase the country´s resilience, and help achieve the
services; and (iii) building resilience. Addressing
Sustainable Development Goals agenda by 2030.
these three dimensions through investments,
policies and institutional strengthening will benefit We hope that this work serves to facilitate dialogue
the people of Argentina, the environment, and that will move the water agenda forward. It should
economic stability and growth, as this report be viewed as just one more step that the World Bank
demonstrates. takes in accompanying the federal and provincial
governments in their efforts to pursue a more
As a natural resource that has historically been in
inclusive, resilient and prosperous future for all of
abundance, we sometimes forget the transformational
Argentina.
power of water and its impacts on many other sectors.
Health, education, energy, agriculture, industry,
governance, transport and tourism, all depend highly
on reliable water sources. This report highlights these
linkages and, thanks to excellent collaboration with
a wide number of specialists from these fields, it Jordan Z. Schwartz
explores how to manage water to satisfy all of the Country Director for Argentina,
competing demand for its use. Paraguay, and Uruguay, World Bank
Acknowledgments

T
his report is based on the Country Case Study for Pablo Gluzmann*, Nicolas Monzon*, Alejo Rivas*, and
Argentina undertaken by the World Bank as part Antonia Sbattella (Facultad de Ingeniería, Universidad
of its Water Security Initiative in Latin America and de La Plata) worked on the hydro-economic model
the Caribbean. The study represents a first attempt featured in appendix B; Charles Vorosmarty, Anik
at undertaking a comprehensive Water Security Bhaduri, Ben Stewart-Koster, Balazs Fekete (CUNY),
Diagnostic, based on the best available information Andres Ravelo (CREAN-UNC), Marta Marizza, Pablo
and knowledge of the sector in the country. This report Cello, and Rosana Hammerly (FICH-UNL) worked on
presents the study’s findings and recommendations. the hydrological model and water balance featured
in appendix A; and Eduardo Pelitti helped with the
The core team that conducted the study and prepared
synthesis and translation of the economic analysis.
the report was led by Victor Vazquez and consisted
of Horacio Seillant, Jerónimo Puertas, Ayelen Becker, Additional technical inputs and analysis were provided
Alex Serrano, Raúl Lopardo, Silvia Rafaelli*, Andres by the following World Bank staff: Andrea Juarez,
Carsen, Miguel Solanes, Humberto Peña, Liber Martin, Christian Borja, Caroline Van den Berg, Berenice Flores,
Luis Loyola, and Rodrigo Villareal. Background papers Bryan Walsh, Eugene Perk Han Tan, Julie Rozenberg,
prepared during the course of the study by the and Gregor Schwerhoff. Special thanks go to Alejo
Facultad de Ingeniería, Universidad de La Plata; the Molinari (ERAS) and Jing Liu (Purdue University) for
City University of New York (CUNY); the Centro de their contributions to water supply and sanitation
Relevamiento y Evaluación de Recursos Agrícolas y benchmarking and computable general equilibrium
Naturales, Universidad Nacional de Córdoba (CREAN- (CGE) modeling, respectively.
UNC); the Facultad Ingeniería y Ciencias Hídricas,
Universidad Nacional del Litoral (FICH-INL); UNESCO; For technical guidance, including through formal
and FAO were used as inputs and reference material peer reviews and many engaging discussions, the
for this report. Claudia Nin and Romina Campi provided team would like to thank the following World Bank
administrative support during the study. Contributions staff: Richard Damania, William Young, Javier Zuleta,
to the background documents were made by the Abedalrazq Khalil, Paul Procee, Carole Megevand,
following specialists, who contributed key analytical Francis Fragano, Aude-Sophie Rodella, Melissa Castera,
work, background papers, and data. Demian Panigo*, Silvana Kostenbaum, and Gustavo Saltiel.

* Inputs provided before December 2019.

 xii Argentina: Valuing Water

The study was conducted under the guidance of Jesko Ambiente (COFEMA), Comité de Cuenca del Río Luján
Heinkel and Jordan Schwartz (Country Directors for (COMILU), Comité de la Cuenca Reconquista (COMIREC),
Argentina, Paraguay, Uruguay), Anna Wellenstein Comisión Nacional de Actividades Espaciales (CONAE),
(Sustainable Development Regional Director, Latin Comisión Regional del río Bermejo (COREBE), Centro
America and the Caribbean) and Rita Cestti (Water de Relevamiento y Evaluación de Recursos Agrícolas
Practice Manager, Latin America and the Caribbean). y Naturales (CREAN), Dirección General de Obras,
The study has received valuable support from the Municipal Malvinas Argentinas, Dirección Nacional
World Bank’s Global Solutions Groups, in particular, De Generación Hidráulica, Departamento Provincial
Water Resources Management; Water Supply de Aguas Rio Negro (DPA), Dirección Provincial de
and Sanitation; Resilience; Water in Agriculture; Obras y Servicios Tierra del Fuego, Ente Regulador
Hydropower and Dams; and Water, Poverty, and the de Agua y Saneamiento (ERAS), Foro Argentino del
Economy. Many thanks go to staff from the following Agua, Fundación Humedales, Instituto Argentino de
Global Practices: Urban Development and Disaster Recursos Hídricos (IARH), Instituto Correntino del
Risk Management, Governance, Energy, Environment Agua y del Ambiente (ICAA), Instituto Geográfico
and Natural Resources, and Agriculture. In particular, Nacional (IGN), Instituto de Hidrología de Llanuras
the team would like to express its sincere thanks (IHLLA), Instituto Nacional del Agua (INA), Instituto
to Roberto Magnasco, Lucia Spinelli, Pablo Herrera, Nacional de Investigación y Desarrollo Pesquero
Santiago Arias, Veronica Rafo, Liljana Sekerinska, and (INIDEP), Laboratorio Construcciones Hidráulicas de
Francisco Obreque for their valuable support. la Universidad de Tucumán, Ministerio de Ambiente
y Desarrollo Sostenible (MAyDS), Ministerio de
Special thanks to the Secretariat of Infrastructure
Agricultura, Ganadería y Pesca (MAGyP), Ministro de
and Water Policy (Secretaría de Infraestructura y
Seguridad de la Nación, Obras Sanitarias de Mar del
Política Hídrica, SIPH), due to its constant support
Plata, Organismo Regulador de Seguridad de Presas
and also assistance in helping organize a number of
(ORSEP), Secretaría de Infraestructura y Política Hídrica
workshops and key meetings with a great number
(SIPH), Secretaría de Planificación, Secretaría de
of stakeholders. A number of institutions reviewed
Recursos Hídricos de Santa Fe, Secretaría de Recursos
earlier versions of the report and provided thoughtful
Hídricos de Córdoba, Secretaría de Recursos Hídricos de
comments and suggestions. Special thanks go to
Salta, Secretaría de Recursos Hídricos de Jujuy, Servicio
Aguas de Corrientes, Asociación Interamericana de
Meteorológico Nacional (SMN), UPE Plan Hidráulico,
Ingeniería Sanitaria y Ambiental (AIDIS), Autoridad de
and Ministerio Desarrollo Urbano y Transporte. Finally,
Cuenca Matanza Riachuelo (ACUMAR), Autoridad del
sincere thanks go to the following experts for their
Agua Buenos Aires (ADA), Autoridad Interjurisdiccional
valuable reviews: Victor Pochat, Liber Martin, Hector
de las Cuencas de los ríos Limay, Neuquén y Negro
Villa, Emilio Lentini, Juan Koutoudjian, Carlos Acuña,
(AIC), Administración Provincial del Agua de Chaco
Oscar Centrángolo, Ariela Goldschmit, Verónica Cáceres,
(APA), Agencia de Planificación (APLA), Agua
and Andrés Carsen.
y Saneamientos Argentinos (AySA), Asociación
de Amigos de la Patagonia, Consejo Federal de The preparation of this report was made possible
Entidades de Servicios Sanitarios (COFES), Consejo through the financial support provided by the Global
Hídrico Federal (COHIFE), Consejo Federal de Medio Water Security and Sanitation Partnership.
Executive Summary

W
ater security—the availability of an acceptable, vulnerable. The analysis explores the factors underlying
affordable, and sustainable supply of water water sector performance, including institutions,
for health, livelihoods, ecosystems, and infrastructure, and financing.
production, that is made available in ways that address
This water security assessment is motivated by two main
adverse impacts on other users including future
factors. First is the World Bank’s firsthand experience
generations, the economy, and the environment—is at
operating in Latin America and the Caribbean and in
the core of a country’s sustainable development. This
Argentina, where water security challenges originating
report assesses water security in Argentina, using a
in growing demand and climate change are on the rise,
conceptual framework developed by the World Bank.
now enhanced by the COVID-19 pandemic. Second is
This report was completed during the outbreak of the the country’s commitment to comply with the 2030
COVID-19 disease. The effects of the pandemic reinforce Sustainable Development Goal (SDG) agenda, in which
the importance of safe access to water, hygiene, water has a central role.
and sanitation, both as the first barrier against virus
Argentina is already taking key steps to close water
transmission and as an essential factor during recovery
security gaps. It is increasing access to water and
to mitigate secondary impacts on livelihoods and
sanitation services with a focus on the most vulnerable;
community well-being. The clear need to ensure that
defining planning instruments such as national water
water is available in sufficient quantity and quality for
plans; reinforcing tools such as the national information
human and productive uses, together with controlling
system for water and sanitation, the National Water
the effects of the excess of water, highlights its central
Network Information System (SNIH) and management
role in the economy, and in particular in securing the
and results plans (PGRs) for public service companies;
well-being of vulnerable communities.
expanding the regulatory framework with Law 27,520
The conceptual framework highlights the balance of on minimum budgets for adaptation to and mitigation
economic, social, and environmental outcomes (costs of climate change; and creating new entities such
and benefits) from water. Its diagnostic of water sector as the National Directorate of Drinking Water and
performance considers the management of water Sanitation (DNAPyS). This study builds on these efforts
resources, delivery of water services, and mitigation of and recommends steps to take toward becoming a
water-related risks, with a special focus on the most more water-secure country by 2030.
 xiv Argentina: Valuing Water

Water’s cross-cutting and transformational role, Water is obviously critical for agriculture, a sector
together with the sector’s increasing challenges, that is central to the country’s economy. As a major
deserve to be viewed as a whole, especially since exporter of grains, Argentina is a net contributor to
the climate change adaptation agenda mainly global food security. Although the sector’s contribution
concerns water. So, this report identifies important to the country’s gross domestic product (GDP) is slowly
multisectoral water-related challenges that could decreasing (it is currently 6 percent), it is still the main
hinder progress in economic and human development. source of exports and inflowing foreign reserves, and is
It identifies unmitigated water-related risks, as well thus fundamental to macroeconomic stability. Rainfed
as opportunities for water to contribute to more agriculture is responsible for 87 percent of the sector’s
sustainable economic growth and poverty reduction. In value. Irrigation, though benefiting only 5 percent of
doing so, this report also highlights the importance of the agricultural area, is responsible for 13 percent of
the water cycle as an integral concept that links water the sector’s value, with an average annual production
resources management, the delivery of services, and of US$5.67 billion.
the mitigation of water-related risks.
The country has considerable potential to improve and
This holistic work includes a series of analyses expand irrigation in a rational manner and considering
regarding the water sector in Argentina, developed also the needs from other users. This offers an
from a wide array of data compiled from different opportunity to not only increase the sector’s economic
institutions at all levels. Its analytical contributions are: output but also its resilience to droughts. In addition
• The inclusion of countrywide hydrological modeling to measures to increase efficiency in already irrigated
and water balances at the macro-basin level with areas, the country has great potential to expand
climate change projections. complementary irrigation to 4.7 million hectares
of rainfed crops such as soy, wheat, and maize.
• A holistic exercise in hydro-economic modeling
that quantitatively estimates the overall economic Environmental impacts associated with this expansion
impacts of current water security gaps and the cost- are limited, since the proposed interventions involve
benefit ratios of water investments. increasing efficiency, while most of the water extraction
needed for complementary irrigation, assessed for the
• A public expenditure review, including an central and northeast areas of the country, come either
assessment of regulations, policies, and institutions
related to the provision of water supply and from aquifers with sufficient recharge capacity or from
sanitation services. the large rivers in La Plata Basin.

• An update of the 2015 United Nations Food and Although industry accounts for only 2 percent of the
Agriculture Organization (FAO) and Argentinian total demand for water in the country, it contributes to
Provincial Agricultural Services Program (PROSAP) 31 percent of GDP. More than 50 percent of industrial
study on irrigation viability in Argentina, assessing demand comes from the food, beverage, and chemical
irrigation optimization options and considering the products sectors, which depend heavily on reliable
impacts of climate change. supply of water. The country’s dominant industrial
• A compilation of water quality data and proposed sector will continue to depend on continuity of service
first steps toward an assessment of surface water in its water supply network, even as climate change
quality across the country. potentially affects water availability in areas far from
The main target audience of this report comprises the main rivers.
decision makers in the water sector and beyond. Hydropower accounts for about 26 percent of electricity
In particular, the economic outcomes assessed should generation in Argentina, down from 46 percent in
raise awareness of the need to conduct essential 1985. Although that contribution is smaller than in
institutional and policy reforms and make targeted other countries in the region such as Brazil, Chile, and
investments, leverage the opportunities identified, and Colombia, it is still higher than the world average of
contribute to a more resilient and sustainable economy. 15 percent. The potential for the development of new
hydroelectric projects is substantial, as they could
The Importance of Water in increase installed capacity by up to 80 percent. These
Argentina: Economic, Social, developments could also satisfy demand for other uses
(domestic, industrial development, irrigation), bringing
and Environmental Outcomes additional benefits, especially in arid and semi-arid
Water is essential for the present and future areas that need additional storage to increase resilience
socioeconomic development of Argentina. It has to droughts. But the projected decrease in the
inherent social, economic, and environmental benefits, availability of water due to climate change, together
and when there is too little or too much of it, or it is with the high cost of these projects in a context
too polluted, important costs arise. of economic instability and the often-substantial
 xv

environmental and social impacts associated with in the lower-income sectors, which often cannot
dams, means their viability must be evaluated carefully fully recover before the next event, even after social
case by case. transfers, and so face an increasing risk of falling into
a poverty trap.
The large river flows in La Plata Basin have traditionally
guaranteed river navigation, essential to Argentina’s Among social and distributional impacts, the link
foreign trade. It is estimated that 84 percent of exports between safe drinking water and sanitation and the
use this route. The Paraná–Paraguay–La Plata waterway quality of human capital stands out. The development
(Hidrovía), operated and maintained through a possibilities of a country are largely determined by
concession contract, has allowed for a major reduction the health and education of its population. The COVID-
in transport costs by integrating important production 19 pandemic, in the same way that other diseases
areas and allowing the agricultural frontier to expand, did in the past, confirms these links, as communities
thereby reducing congestion and pollution caused by without access to drinking water and sanitation
ground transport and so saving the associated social services face increased exposure to the virus.
costs. Yet, navigability could be at risk if climate change Although Argentina is better off than other countries
and demand pressures upstream continue to rise. in the region with regard to child mortality due to
Assessing the current economic costs derived from key water-borne diseases, data from before this pandemic
water security gaps, this study found an overall impact indicate a loss in Argentina of the equivalent of more
of around 2.2 percent of GDP, or US$11.8 billion a year. than 10,000 disability-adjusted life years (DALYs)
The main contributor to this figure is the lack of access caused by a lack of access to safe drinking water
to secure, piped water among 7.5 million inhabitants (85 percent of cases) or to adequate sanitation
(17 percent of the population) and lack of access (15 percent of cases).
to sewerage among 21 million (48 percent). Their The study also found that people without access to
estimated combined economic impact is 1.32 percent piped water pay up to 460 percent more for safe
of GDP, including harm to health and education— (bottled) water than people who are connected to
the essentials of Argentina’s human capital. People the network. The lowest-income sectors often cannot
without sewer services perceive a loss of quality of afford the costs of a networked connection, or they do
life equivalent to US$4.4 billion annually, while the so by sacrificing other essential goods. These groups
costs associated with the lack of piped water are are also those that most value, in relative terms, the
estimated at US$1.8 billion. Disruptions in water supply availability of water services. In rural areas, exposure
affect industrial production with impacts equivalent to to unsafe water among isolated, often indigenous,
0.16 percent of GDP. populations perpetuates vulnerability and poverty.
The second-largest economic cost comes from the high In some rural places of Chaco, Formosa, and Salta
exposure of rainfed agriculture to climate variability, a considerable amount of time is spent, mainly by
particularly given the value of soybeans and the women or young girls, in carrying available water,
importance of the dependent food industry. Soybeans, often from unsafe sources, with consequent harm to
and other non-irrigated crops, are vulnerable to climate their health, education, and productivity.
variability, so yields and production are unstable. About
There are also gender issues related to water security
US$3.2 billion a year is lost on average (0.61 percent
challenges. Women are not only more affected than
of GDP) due to climate variability—90 percent to
men by the lack of safe water on household premises
droughts and 10 percent to floods. In addition, the
in rural areas, but they also play a more important
macroeconomic model used by this study estimates
role in restoring normal living conditions at home after
a consequent boost to inflation of 1.2–2.3 percent
a flood, diminishing their time carrying out personal
annually. This shows the importance of complementary
development activities outside the household. In
irrigation to mitigate the impact of these shocks,
addition, women are still underrepresented in the
increase productivity, and increase the agriculture
water sector’s workforce, particularly at technical
sector’s resilience.
and managerial levels. However, there are important
Flooding is the most recurrent hazard in Argentina initiatives in place to address these gaps, such as the
(responsible for 54 percent of hazard events since ones being carried out by the national water utility
1970). Urban flooding causes damage to assets supplying water to the Greater Buenos Aires area
equivalent to 0.2 percent of GDP a year and damage (Argentinian Water and Sanitation, AySA), led for the
to well-being equivalent to 0.3 percent. The loss of first time by a woman, and by the Gender Commission
well-being is estimated as the consumption power of the National Water Council (COHIFE), which are
lost by those affected due to the need to recover promoting gender equality at managerial levels in
the assets lost. Loss of well-being is more intense AySA and, more generally, in the water sector.
 xvi Argentina: Valuing Water

Conflicts over water are relatively common in Argentina rates, and rainfall trends are becoming more uncertain.
and offer a clear example of the negative social While the Northeast tends to be more humid, other
impacts derived from gaps in water governance and areas of the country show increasing aridity, such as
exacerbated by climate variability. These conflicts the Central Andes. This report’s analysis also confirms
are related to competition for surface water or the high sensitivity of the central, humid Pampas
groundwater, and to externalities generated by region, where dry anomalies are fairly frequent.
anthropogenic events, such as pollution. These could Increasing seasonal trends of extreme precipitation
be intensified amid climate change extremes. They have been observed since the 1980s in some areas of
could involve litigation between private parties and the country, with greater intensities in the summer in
the government, or between provinces, and conflicts the north and east regions.
between institutions and users in the same jurisdiction
Coastal areas are subject to flooding, coastal erosion,
(national or provincial).
and saline intrusion into aquifers, due to the combined
Argentina has abundant environmental assets providing effect of the rising mean sea level and anthropic change.
important ecosystem services associated with water. The latest projections show that Argentina could lose
But some of the assets are under threat. Native forests, 3,700 kilometers of sandy coastline by the end of the
wetlands systems, and other ecosystems related to century, with major economic impacts on tourist areas.
water, provide such essential hydrological services as
flow regulation and natural water purification. This Water Sector Architecture
study shows, among other issues, eutrophication
problems in surface water bodies, due mainly to diffuse Institutions
contamination from the agricultural sector. Argentina is a federal country, where provinces have
Argentina has one of the lowest wastewater treatment jurisdiction over the natural resources in their territories,
rates in the region, covering 11 percent of wastewater including water. The national government is responsible
generated (or 20 percent of wastewater collected) in for those matters that have been delegated to it, such
2018. This study, capturing only some of the economic as the issuance of minimum environmental protection
impacts of water pollution, estimated them as costing standards (National Constitution articles 1, 41, 121,
at least 0.09 percent of GDP. Also, 4 million people 124, 126). In addition, national government historically
without access to a safe water supply in Argentina are had, and continues to have, a series of constitutional
potentially exposed to arsenic in groundwater. powers and duties, such as the promotion of well-
being and trade, and the power to allocate investment
resources via the federal budget. Because water is key
Water Sector Diagnostic to human well-being and the entire economy, in the
Natural Capital and Water Demand past the national government played an outsized role
in the expansion of drinking water and sanitation and
Although the natural water supply is abundant hydropower services, and the development of irrigation.
on average, its availability for use is not always
guaranteed. Argentina has one of the highest rates Efforts by the national government and the provinces
of dependency in the world on the renewable water to promote a legislative framework to establish
in its share of the La Plata Basin, where 70 percent minimum standards for environmental protection
of the population lives and two-thirds of economic in water management have been controversial
activity are located. Yet, areas of demand can be far and insufficient. Law 25,688 of 2002 has not been
from surface watercourses, and groundwater is often regulated, operationalized, or applied directly and
limited by quality problems or is found at great depths. conclusively in specific cases. Objections to the law, on
So, the exploitation of water can be expensive. The constitutional grounds, regarding the creation of bodies
distribution and availability of water across the country with decision-making powers and the Congress’s
are unequal, with two-thirds of the country being arid delegation of legislative competence for environmental
and semi-arid, in the western and southern regions. protection standards to the national government
remain in force, as has been critically observed by
Macro-hydrological modeling shows that surface
some provinces.
water availability is most challenging in areas of the
macro basins of the central and northwestern region In 2003, the provinces and the federal government
of Argentina, and it is being further compromised agreed on the Guiding Principles of Water Policy
by climate change. These areas’ ability to meet local (PRPH) regarding technical, social, economic, legal,
demand for domestic and productive (agroindustry) institutional, and environmental aspects of water
consumption is increasingly limited. Climate change resources management. The General Auditor of
is clearly raising temperature and evapotranspiration the Nation (AGN) has commented that these are
 xvii

not integrated with national environmental legal creation of the National Directorate for Water Supply
regulations or definitions of environmental services. and Sanitation, the definition of important policy
According to institutional evaluations of PROSAP, their instruments such as the PGRs for the main utilities,
implementation is ongoing and progress varies widely and the revision of the regulatory framework are
throughout the country. What is remarkable is that steps in the right direction, making the sector more
even without being approved by law, the Guiding efficient. Yet, the water supply and sanitation sector
Principles are accepted by all jurisdictions as the continues to face structural challenges in planning,
reference for the management of water resources. capacity, effective regulation, and governance that
block the path to achieving SDG targets 6.1, 6.2, and
There is great disparity in the regulatory and 6.3 concerning access to water and sanitation. The
institutional frameworks for water at the provincial great diversity of providers and the lack of a national
level. Some of the most developed belong to provinces regulatory framework make benchmarking among
that have decades of practical experience in managing providers difficult, sacrifice economies of scale, and
shortages, especially in irrigation. This implies the multiply costs, including transaction costs.
development and effective maintenance of cadasters
and registries of public and private waters, rights Planning, mostly centered on infrastructure, has
over ground and surface waters, and exploitation and traditionally lacked criteria for selecting and prioritizing
discharge permits, among others. Other provinces, investments or addressing the most urgent social
meanwhile, have significant limitations in their needs in vulnerable areas. Information on the situation
regulatory development and institutional capacities. in health centers or schools is absent. The National
These problems are generally associated with the low Water Supply and Sanitation Plan from 2017 is still
priority given to the sector by the respective provincial mostly urban, with a less clear strategy for providing
governments. In general, the granting of use rights services in rural areas. The plan does not establish links
is not informed by updated water balances or duly with the key performance indicators in utilities’ PGRs,
framed in hydrological planning processes. an important step toward efficiency. The nineteen PGRs
that are completed or are being prepared for the main
Additionally, there is a mosaic of different provincial utilities still lack an accountability mechanism
interjurisdictional basin organizations established for for compliance with their key performance indicators.
specific purposes, with highly variable attributions,
financing, management instruments, and capacities. The establishment of the DNAPyS for investment planning
In the case of basins with shared water resources, or and sector coordination is an important milestone
with transfer of externalities, the federal structure of toward filling the vertical coordination gap. But the fairly
the country determines that the provinces interact new department still lacks sufficient technical staff and
with one another, in most cases with the participation capacities to fully carry out its functions.
of the national government. There is no single model Fourteen provinces have regulators that function in
for the structure, financing, and functions of basin accordance with legal frameworks defined by the
organizations. These interjurisdictional institutions, provincial governments. There is no national law
formed by representatives of the corresponding with common parameters for service quality or for
provinces, usually do not administer the resource setting tariffs, though parameters for water quality
and are based mainly on the need to face specific are mentioned in the Argentine Food Code 18,284.
problems related to the externalities that affect Regulators enjoy some financial independence but in
different jurisdictions, undertaking specific functions general lack political independence. Most provincial
delegated by the corresponding provinces. Yet, regulatory frameworks, created during the privatization
there are exceptions. The Interjurisdictional Basin of utilities in the 1990s, are not appropriate under
Authority for Limay, Neuquén, and Negro (AIC); the the current conditions of public service provision.
Matanza Riachuelo Basin Authority (ACUMAR); and Their sanctions and principles are for the most part
the Interjurisdictional Committee of the Colorado innocuous in the face of public management.
River (COIRCO) play a larger management role. There
are also good examples of the participation of user In general, inadequate land use management and the
organizations, especially irrigators, in some provinces. lack of implementation of risk zoning in certain peri-
urban areas, are two of the main challenges regarding
Although the existing policy, institutional, and flood risk management. On the latter, although some
regulatory framework for water supply and sanitation jurisdictions are working on the issue, such as Rio
does not adequately address key sectoral challenges, Negro and the area of AIC, risk zoning is generally
efforts to do so are under way. The elaboration of the not well integrated into the processes of territorial or
first National Water Supply and Sanitation Plan, now urban planning. This is in large part because territorial
being updated with a stronger federal approach, the and basin plans are not yet comprehensive or precise
 xviii Argentina: Valuing Water

enough and there is no coordination between them. With water availability expected to decrease due
The effectiveness of existing flood risk regulations is to climate change, current levels of water storage
also hampered by a lack of capacity among responsible will probably fall short of satisfying all demand in
institutions at the provincial, municipal, or basin the most arid areas. This study takes an estimate
levels. The implementation of non-flood certificates of US$7.5 billion in additional multipurpose storage,
sometimes presents distortions amid social pressures subject to the corresponding environmental
and the existence of irregular settlements that occupy assessment, linked to projects already preidentified
flood-prone lands. The lack of coincidence between the in the National Water Plan.
scale of the floods and the administrative jurisdictions
There are untapped opportunities to explore the
for their management and control is a major limitation
benefits of green infrastructure for flood mitigation.
to a greater effectiveness in the control of the
In urban areas, the traditional, or “gray,” drainage
phenomenon and its damages. Water risk including
infrastructure predominates over retention options and
floods is a special concern of COHIFE, which considered
nature-based, or “green,” infrastructure. Based on the
it at the Third Water Policy Meeting of the Water Risk
information gathered from two of the most affected
Commission.
provinces and the evaluation of annual damages
using the Unbreakable model, this study estimates a
Infrastructure
minimum investment in flood prevention infrastructure
Reaching acceptable levels of water security, linked to of about US$3 billion, for only cities in these provinces.
the achievement of the SDG 6 targets by 2030, would
The hydrometeorological infrastructure is still not fully
require major investments in water infrastructure
developed for a country such as Argentina. Provinces
estimated at about US$97 billion.
have their own networks, but, in general, the number
Closing the infrastructure gap to achieve SDG targets of data collection stations and processing tools is
6.1 and 6.2 regarding universal access to drinking insufficient; multiple networks belonging to different
water and sanitation services in 2030 requires institutions are still not sufficiently integrated; and
US$40.4 billion in new investments plus an additional there are still no fully developed mechanisms that
US$13 billon in renovation works. This translates allow the integration of all the different processed data
into providing drinking water to 17 percent of the sources. The current water quality control network is
population and sanitation to 47 percent. Infrastructure very diverse from province to province in terms of the
renovation and rehabilitation require additional annual density and quality of stations. Investments to upgrade
investments of US$1.3 billion a year (US$13 billion hydrometeorological infrastructure are conservatively
by 2030). The total is more than double current estimated at US$700 million. Early warning systems
investment amounts. And since only 20 percent of using more complete hydrometeorological information,
the wastewater being collected is treated, a further together with such infrastructure, could constitute
investment of US$518 million a year is required over compact, cost-effective interventions to mitigate flood
the next 10 years to expand treatment coverage and impacts in high-recurrence departments. But such
to meet SDG target 6.3 (US$5.2 billion). improvements cannot exist without the necessary
budgetary arrangements for their adequate operation
Regarding irrigation, this study updates the 2015 FAO
and maintenance to ensure sustainability. The national
and PROSAP to propose investments in efficiency and
government is making efforts to upgrade the National
complementary irrigation. In a context of decreasing
Water Information System (SNIH), with particular
water availability due to climate change, efforts
emphasis on expanding the radar network, critical for
to increase efficiency in already irrigated areas
improving the forecasting capacity.
are being proposed such that no additional water
extraction is needed. These interventions would National funds are the main source of infrastructure
allow the expansion of irrigation to nearby areas financing, and private sector investment is still
(561,000 hectares) considering the greater future negligible for water supply and sanitation, while
agriculture demand under projected shortage events, provincial agencies bear most of the financial
assuring resources for other uses without using burden for other water-related investments, such
additional water. These interventions require further as flood mitigation, irrigation, and water resource
assessments of local watershed and improvements in management. For water supply and sanitation,
the local governance context. In addition, the study allocation of national funds does not follow explicit
proposes complementary irrigation in areas with criteria for their distribution, and the regions most
rainfed crops to mitigate their exposure to drought in need are not always those that receive the most.
(4.7 million hectares). The total estimated investment The inefficiencies of fund allocations also create
is about US$27 billion. uncertainty for operation and infrastructure planning.
 xix

It is not clear how investment prioritization processes Many so-called planning instruments solely concern
apply environmental, social, and economic impact infrastructure. Efforts to elaborate integrated
assessment methodologies based on objective criteria. hydrological basin management plans, conceived as
These shortcomings lead to unpredictability regarding tools to facilitate water resource management, are
resources and inefficiency in the execution of projects. ongoing or not yet in place, depending on the basin.
Moreover, there are no clear criteria for the definition
Water Sector Performance and assignment of environmental flows, a challenge
that also depends on the limited information on water
Following the World Bank water security framework, resources.
and considering the characteristics of the sector’s
architecture, this study analyzes the water sector’s The transboundary water management agenda
performance in three dimensions: the management is advancing, although more slowly than the
of water resources, the delivery of water services, and growth of the challenges these basins face. Both
mitigation of hydrometeorological risk in terms of the the Intergovernmental Coordinating Committee of
level of exposure. the countries in La Plata Basin and the binational
and trinational commissions of the Bermejo and
Water Resource Management Pilcomayo rivers have diagnosed the critical issues,
the most important being water extremes, water
The hydrological behavior of many Argentine basins, quality, erosion, and sedimentation, which are
mainly in the humid Pampas region, is complex growing worse over time as externalities from
and needs more analysis and data. Except for a few upstream development add up. The countries have
provinces or basins, the amount of information is established work agendas and strategic action
small, the analysis is still basic, and in many cases plans. But the lack of data or shared information
there are no calibrated water balances that can create on the development of these problems among the
a solid basis for decision making. Groundwater, snow, different countries, and difficulties implementing the
and glaciers are particularly relevant resources, due measures established in the plans, such as seeking
to their great importance in arid areas of the country financing and improving institutional coordination
as natural regulators of water resources. Glaciers are among all parties (including provincial governments),
monitored, but the effects of their evolution on water are bottlenecks to their faster implementation.
balance dynamics have not yet been fully studied. Meanwhile, meetings on the water resources shared
As for groundwater, in some cases the degree of with Chile incorporate Argentina’s federal vision into
exploitation of this resource is well monitored and the binational agenda.
known, but this is not always the case. Groundwater
that is well characterized has great buffer potential
against dry spells. Mitigation of Water-Related
Risks—Exposure Levels
Although water resources are not homogeneous and
have intrinsic characteristics throughout the national Approximately 4 million Argentinians and an average
territory, the lack of reference or guidance values on of more than 5 million hectares of productive
water quality, or methodologies to establish them agricultural land are repeatedly exposed to floods with
that consider these local characteristics and the uses a return period of five years. The departments with the
that are associated with each of them, prevents an largest affected populations are in the Buenos Aires
evaluation of the situation and future projections metropolitan area (AMBA) and other urban areas and
thereof. agricultural lands of the Paraná–Paraguay–Uruguay
basin. High vulnerability and exposure, and low
Planning at the basin scale is work in progress, today resilience, mostly in poor peri-urban areas, are
still being limited to a few cases, barely linked to significant in explaining the impacts of the increased
actual decision-making on water management or hydrometeorological threats.
investments. The establishment of this approach
is a pending task of the utmost importance, since In many rural areas of Argentina, flood risk
integrated basin planning must not only adjust to management relates closely to land use and
the characteristics of the different basins, hydraulic management. The changes in land use generated by
systems, and water sources, but must also consider agricultural production systems that are not adequately
their impact on existing economies and the social managed generate water imbalances. In the north
systems that depend on them. Water allocation often of the country, deforestation, together with poor
depends on limited information and water resources management of sloping fields, increase peak flows
monitoring and traditional or ad hoc arrangements, compared with natural ecosystem cover. In the Pampas
with inherent risks of resource overallocation. region, changes in land use and production systems
 xx Argentina: Valuing Water

generated an increase in the water table level, as reference value of 200 liters). Without micro-metering,
a result of the replacement of perennial crops by real volumetric tariffs linked to measured flows actually
annual crops, with consequent waterlogging problems. consumed cannot be applied. This impedes linking
operating costs and tariff revenues, or to control
The frequent dry periods affect more than the
physical and commercial losses—in Argentina, their
agricultural sector. The vulnerable rural population with
share is an estimated 45 percent of total production,
insecure water sources sees quality worsen as sources
compared with a regional average of 36 percent—with
dry out. There are also certain urban settlements in
a consequent increase in operating costs. The financial
arid areas highly exposed to droughts, as utilities in
performance of Argentina’s main service operators is
these areas present excessive water production rates,
also low, since tariff revenues on average cover only
reaching 800 liters per inhabitant per day. Hydropower
around 80 percent of operation and maintenance costs,
generation is also highly exposed to decreased water
with the rest provided as subsidies by the provinces or,
availability due to climate change, making it difficult to
in the case of Buenos Aires operator AySA, the national
project future production.
government.
This trend is not so clear for river navigation, since
With the operators already fragile, the COVID-19 crisis
La Plata Basin is highly regulated. However, the risk
subjected the water sector to maximum stress. Income
of reduced navigability downstream is not negligible
dropped 30–40 percent on average in the first weeks
and is likely to increase in coming years as upstream
of quarantine. Operators are responsible for delivering
demands intensify and water availability decreases
safe water to vulnerable uncovered areas, and their
amid climate change. Abnormally low water levels in
staff work under threat of contracting the virus.
the Hidrovia were already observed in 2019 and 2020.
The Dam Safety Regulatory Agency (ORSEP) supervises This study calculates that US$0.8 billion could be saved
about 31 dams, of more than 700 across the country. per year and invested in expanding services if utilities
Ensuring the safety of dams that are not under the increased efficiencies by lowering nonrevenue water
levels and thus operation and maintenance costs. The
responsibility of ORSEP (or a basin authority) is the
savings would substantially reduce the public financing
task of provincial water authorities, some with low
capacities and limited resources to carry out this task, required by utilities and also make the cost of service
with the consequent raising risks. Recently, ORSEP provision more affordable. This is relevant because
established safety monitoring programs for certain if tariffs were high enough to cover actual excessive
operation and maintenance costs, 27 percent of the
dams not under private sector concessions, based on
population would have difficulty paying.
bilateral agreements with provinces. The fragmented
system of controls and technical criteria applied to Deficiencies in sanitation services for those people not
the safety of dams and reservoirs represents a risk to connected to the sewer network—more than 21 million
people, the environment, the economy, and property. people—are apparent in a national-level flow chart.
In 2019, a proposed Dam and Reservoir Safety Law, The deficiencies are due to the lack or malfunction
endorsed by the Argentine Committee of Dams and the of containment facilities, limitations and deficiencies
ORSEP, was partially approved by the National Congress. during emptying and transportation for septic systems,
The security conditions of dams, dikes, and reservoirs and lack of proper discharge and treatment.
are established, and the obligations and responsibilities
of their holders defined, along with the creation of a The development, performance, and efficiency of
national registry. A dam safety fund is envisaged. Each irrigation in Argentina are related to infrastructure
province and the CABA may delegate enforcement characteristics, production models, and institutional
authority to the existing jurisdictional water authority or capacity at the provincial and user organization levels,
the basin agency, or adhere to agreements under the particularly as they relate to the management and
national enforcement authority (ORSEP). handling of systems. These elements differ widely across
the nation, depending on socio-cultural, environmental,
agroecological, and economic conditions and, most
Water Service Delivery
importantly, water availability. Efforts to remedy the low
Although the main provincial drinking water and economic efficiency of irrigation systems, particularly
sanitation service operators provide water of in plot use, depend on the set of factors mentioned.
acceptable reliability and quality, their efficiency is A lack of adequate flow monitoring and control to adapt
low compared with regional peers. The most critical systems to fluctuations in demand is usually a major
indicators are the low level of micro-metering issue. Improvements that, for example, mitigate the
(25 percent), and the high level of daily water impacts of future shortage events or free up resources
production per capita (560 liters, compared with a for other uses depend on the degree of feasible
regional average of 330 liters and an international investment, which in turn has a direct relationship with
 xxi

system characteristics and the profitability of different and institutional improvements were not adopted.
production models, in addition to other factors such as These recommendations, related to the sector’s
plot size, associated markets, and access to credit. governance, are explained in the last chapter.
In many areas, irrigation exceeds the drainage capacity The analysis shows that the aggregate impact
of the soil, leading to soil saturation, elevated water derived from following the proactive trajectory and
tables, and increased salinity. Inefficient irrigation and implementing the investments proposed implies an
drainage impair agricultural productivity and lead to annual gain of 2.7 percent of GDP by 2030 beyond
soil and environmental degradation, by, for instance, the status quo. Gross returns of about US$15 billion
worsening salinization problems. According to the per year can be expected where investments in
National Institute of Agricultural Technology (INTA), water supply and sanitation contribute the most.
as cited in a FAO and PROSAP study, approximately The analysis also identifies benefit–cost ratios for
421,000 hectares are affected in the country. This the various interventions ranging from 1.4 for flood
represents 23.5 percent of the total irrigated area. mitigation infrastructure to 4.0 for hydrometeorological
There is clearly room to move toward more efficient infrastructure.
intra-plot water use through technicalized irrigation
The analysis also determines, in a simplified model,
systems that would prevent such externalities, like
the short-term impacts (while the work is being
the investments proposed by this study. The cost of
carried out) of each type of infrastructure on local
drainage improvements and soil degradation recovery
employment, dependency on foreign exchange, and
have been considered as part of the proposed
capacity for self-financing. These considerations are
modernization investments.
even more relevant in the current economic crisis,
The price of water for irrigation can be too high for cost when seeking measures to restore the economy
recovery. Water use efficiency is based not only on through investment in infrastructure and job creation.
the available irrigation technology and infrastructure,
Drinking water and sanitation and flood mitigation
but also on the price of water, resource availability,
interventions are the most labor-intensive and the least
and the technical know-how of the irrigator.
dependent on imported goods. Large water storage
Although the principle of cost recovery is part of the
infrastructure also stands out, but its high investment cost
Guiding Principles of Water Policy adopted in most
makes considering it more complicated in times of fiscal
provincial codes, each province’s water fee collection
crisis. Deepening the Hidrovía, which presents a high
rate depends on its socioeconomic conditions and
net return, depends little on public financing. Irrigation
institutional capacity, and also on the value of the
projects, given adequate feasibility studies, including for
resource for users, which is directly related to the level
water availability, are also strong candidates for private
of stress experienced by systems. Too low a price for
sector financing and labor mobilization.
water and consequent financial unsustainability can
result in the inadequate maintenance of systems and
reduced lifespan of investments. Recommendations
The recommendations outlined in this report aim to
Water Security Trajectories realize the benefits identified above and prioritize
the main efforts that could lead to more resilient and
The study describes two possible water security
sustainable development in a context of economic
trajectories for Argentina, up to the year 2030. The
recovery and climate change, aligned with the 2030
first shows a trending or business as usual scenario, in
Sustainable Development Agenda. The study identifies
which no major changes are made to the status quo,
priority investments based on short- and medium-
existing challenges are perpetuated, and identified
term impacts, focusing above all on the governance
opportunities are not developed. The second trajectory
measures necessary to create an enabling environment
is based on a proactive strategy that aims to achieve
for more efficient public spending and sustainability.
SDG 6, addressing the challenges to water security
The recommendations center on key steps necessary to
and leveraging the water sector to take advantage
achieve a water-secure Argentina by 2030.
of opportunities for economic growth. The analysis
of both trajectories incorporates climate change as
an indisputable reality affecting the country’s water Strengthen Water Resources
security now and in the future. Management As a Basis for Adapting to
Climate Change and Growing Demands
Although the comparative analysis of scenarios
considers necessary infrastructure investments, The next step in water resource management, after
these would not be sustainable and therefore viable the Guiding Principles of Water Policy, is developing
if a set of complementary, nonstructural measures the minimum contents of a new regulatory framework.
 xxii Argentina: Valuing Water

It would include standards, criteria, methodologies, as mitigating erosion and sedimentation, improving
protocols, and best practices for water resources resilience to hydrometeorological extremes, and
management, shared throughout the national territory, understanding and addressing the causes and
that each province would be able to adjust, adapt, and consequences of water quality problems.
develop according to its realities. The new regulatory
For the interjurisdictional river basin organizations,
framework should also set broad limits, indexes, or
progress needs to be made in reinforcing their
reference values for water quality.
planning role and on other functions to be delegated
Some provincial regulatory frameworks need to by the participating provinces that may be necessary
be updated to adapt exploitation permits to the depending on the case. These responsibilities should
characteristics of each source, define the optimal be matched with increased financial autonomy, backed
timing of extraction, and establish clear rules for water by sustainable financing instruments that ensure the
allocation and management during droughts. Where continuity of long-term policies. The preparation,
water is shared between different jurisdictions, it is implementation, and evaluation of river basin plans,
recommended that periodically revisable agreements as key elements of more rational and sustainable
establish quotas by province, or even define the territorial planning, are musts.
benefits to be derived from interjurisdictional water
The most essential and cross-cutting recommendation
exploitation, within the framework of hydrological
is to deepen knowledge on water resources,
plans and backed by rigorous analysis. It is also
including water quality and demand. Many other
advisable that these agreements contemplate
recommendations to strengthen water management
environmental flows defined under criteria established
depend on this one. Promoting data generation,
in the corresponding basin plans, considering the
mapping, modeling, and forecasting of ground and
socioeconomic factors of each specific context, and
surface water resources in a systematized way, both
following guidance from the proposed national
at the provincial and national levels, is a low-hanging
regulatory framework.
fruit when the costs and benefits of such activities are
National and provincial entities should work to reduce compared. Having large and standardized databases is
the existing levels of institutional fragmentation and not useful without a clear commitment to transparency
the amount of overlapping responsibilities. Whether in providing information. This commitment should
it is conducted under the umbrella of one institution be understood in the federal context, where each
(at the ministry level) or by streamlining functions and institution at different jurisdictional levels manages its
establishing clear coordination mechanisms among own information.
entities, water resource management needs to happen
A two-step approach is recommended when
in a more integrated manner, avoiding duplication
considering hydrometeorological infrastructure.
of functions to maximize efficiency. Overcoming the
As a first step, and before further expanding
significant disparities in water-related institutional
hydrometeorological networks, it is advisable to
capacities requires the development of a national
focus efforts on coordinating and systematizing
plan for institutional strengthening, with concrete
existing data sets, improving the interconnectivity
measures for different institutions at all levels. It should
of networks, and developing and sharing decision-
encourage the horizontal transfer of capacities based
making tools at the provincial and federal level.
on the successful experiences of different provinces, as
The second step would be investing in further
well as of the expertise and knowledge of specialized
development of hydrometeorological infrastructure
agencies. These institutions should also make technical
and early warning systems (see infrastructure
positions more attractive to incoming young staff,
recommendations).
and promote intergenerational knowledge transfer
plans to avoid losing the valuable experience of those For both previous steps, it is essential to guarantee
who retire. operation and maintenance budgets to ensure their
sustainability. This would allow the continuation of
In particular, this study recommends consolidating important data series and also ensure the functionality
and reinforce the role of river basin organizations, of decision-making tools and associated services
especially at transboundary and interjurisdictional (i.e., early warning systems).
levels, to improve overall efficiency in water resources
management. Argentina, as a downstream country Reduce Water-Related Risks and
in the main international basins of which it is a part,
must promote faster advances in transboundary water
Increase Resilience to Extremes
management agendas. It should seek to accelerate It is important to establish a dam safety regulatory
the implementation of measures identified in the framework and strengthen the Dam Safety
strategic action plans for these basins, in such areas Regulatory Agency (ORSEP). Pending the passage
 xxiii

of the act presented to Congress by ORSEP, this Measures to increase resilience to droughts, beyond
study recommends extending ORSEP’s responsibility strengthening water resources management, center
through agreements with all jurisdictions and/or on more efficient water use and increased storage
basin organizations. This would allow for economies infrastructure. The irrigation sector, as the largest water
of scale in terms of costs and would centralize consumer, shows the greatest potential for efficiency
functions related to dam safety control in a single, improvements and water savings if accompanied by
highly experienced and skilled entity, helping to adequate governance measures, and the strengthening
standardize dam safety surveillance and control of water allocation and management systems, which
procedures across the national territory. A national starts with expanding knowledge on the resources
register of dams and technical archives, proposed in delivered and the dynamics of water demand from
the draft law, would allow operators to diagnose the different sectors, particularly in times of scarcity. For
status of key infrastructure, and thus prioritize the this, improvements are required in data collection
preventive maintenance of those assets with the most and recording, and in processing and monitoring
critical need. capabilities.
As some provinces are already doing, expanding the This study acknowledges investments to increase
practice of preparing and implementing land use efficiency substantially, but these measures require
management plans could reduce flood risk. More an enabling environment, with particular attention to
emphasis needs to be placed on consensual provincial farmers’ access to finance. Possible solutions include the
planning, based on citizen engagement, for collective establishment of reciprocal guarantee companies that
improvements in agricultural land use. Key steps grant guarantees to improve financing conditions
include promoting crop rotation for the efficient use through banks, capital markets, and suppliers, or other
of water resources according to availability, and soil public financial institutions. The same considerations
conservation practices. apply to the development of structural measures to
reduce droughts’ impacts on nonirrigated agriculture.
The expansion of traditional (gray) flood mitigation
infrastructure alone will not sufficiently mitigate The storage agenda must acknowledge multipurpose
the impacts of floods in areas where they recur dams (new or rehabilitated). The viability of dam
often. Nature-based solutions (so-called green projects being considered across the nation will depend
infrastructure) should be promoted in Argentina as it on the local and national economic context. The fact
moves toward integrated urban water management. that many of these projects are multipurpose, allowing
This type of infrastructure could even have higher the use of the resource for irrigation, drinking water,
cost-benefit ratios than traditional infrastructure industrial use, or even recreation, should increase their
in exposed areas. Early warning systems based feasibility, provided that their environmental and social
on up-to-date hydrometeorological information, impacts can be mitigated.
together with nature-based solutions, constitute
compact, cost-effective interventions to mitigate Expand Drinking Water Supply
flood impacts. and Sanitation Services in a
New or updated integrated flood risk management Sustainable Manner, Prioritizing
plans are also urgently needed for the main urban the Most Vulnerable Areas,
areas of the country. Urban planning processes must
through Stronger Providers
integrate in a rational manner enforceable hydrological
risk zoning and the expansion of water and sanitation The extension of water supply and sanitation services
services. Urban and hydrological planning tools, has the greatest social impact, with obvious benefits
such as risk zoning, should be synchronized as they for the health of the most vulnerable population
are key to preventing flood-related impacts. Risk segments. The COVID-19 crisis has highlighted
zones, determined using the latest data, should be the urgent need to act fast. For services to be
communicated through regularly updated flood maps, provided sustainably requires that robust providers
and faster progress should be made in delimitating the keep operating costs at reasonable levels, operate
hydraulic public domain along main river courses. Once efficiently, and recover operating and maintenance
these zones are publicized, ensuring compliance with costs from their own revenues. A turnaround process
zoning criteria is a must to prevent flood impacts, so will be needed, given the status of many utilities in
administrations should work to minimize exceptions Argentina today. The turnaround starts with developing
to the rule. Slum upgrading programs should consider business plans agreed on by the provider, regulator,
flood risk mitigation as a central driver for change in and governing bodies. The plans need to outline clear
high-risk areas, and consider relocation alternatives next steps for the sustainable expansion of services,
if necessary. including the following:
 xxiv Argentina: Valuing Water

• Predictable revenues subject to clear regulations Information on access to basic services in health
and reliable adjustment mechanisms, even when centers and schools must be systematized, so that such
tariff revenues are supplemented by subsidies. services can take priority in water service expansion
• Predictable fiscal, provincial, and national funds for strategies or emergency actions in the face of health
new infrastructure. In this regard, it is proposed that crises such as the COVID-19 pandemic. Programs
national funds be distributed according to regional raising awareness of the importance of handwashing
needs and the performance of providers. and hygiene should be part of these strategies.
• The strengthening of provincial regulators’ functions, Also, to improve their performance, utilities should pay
and the clarification of providers’ obligations in attention to efficiency by reducing nonrevenue water
regards to service quality and coverage expansion. and energy consumption, setting tariff schemes that
A new law for water and sanitation services is promote rational use based on actual (micro-metered)
proposed, to strengthen the standardization of service, modernizing processes based on digital
objectives, roles, and functions across sector solutions to reduce transaction costs, and leveraging
stakeholders. This could make the environment circular economy principles, especially those related to
more conducive to changes proposed to ensure reuse, in contexts where competition for the resource
the sustainable expansion of services, reinforce is high.
the predictability of income, and possibly establish In terms of water and sanitation investments, achieving
a fund to finance the sector, thus facilitating the universal coverage through networked sewerage
recommendations mentioned above. Capacities in poses too high a cost. This study thus recommends
the water supply and sanitation sector should be also that the septage management sector be formalized
enhanced with special attention to project preparation and regulated to stop contamination in areas without
and engineering designs, to ensure coherence and sewers. Backed by such regulations, nonnetworked
efficiency principles apply to newly developed WSS solutions could be safely expanded in areas of low
infrastructure. population density to increase “access to safely
As Argentina’s main utilities start to improve their managed sanitation” in accordance with SDG indicator
performance, the focus should move toward smaller 6.2.1. This study also recommends prioritizing
utilities, for which processes of agglomeration or wastewater treatment plants in areas where (1) there
capacity transfer may be considered. Isolated rural is already a sewerage network or there will be one
populations and the most vulnerable households soon, (2) the population density is high, (3) the
in peri-urban areas should be priority targets for purification capacity of the recipient water body is
intervention through technically and socially robust low, and (4) the environmental and social impacts of
solutions and strategies that maximize connectivity. discharging untreated effluent could be high.
Abbreviations

AGN Auditoría General de la Nación LAC Latin America and the Caribbean
(General Auditor of the Nation) MAyDS Ministerio de Ambiente y Desarrollo
AMBA Área Metropolitana de Buenos Aires Sostenible (Ministry of Environment and
(Metropolitan Area of Buenos Aires) Sustainable Development)
AySA Agua y Saneamientos Argentinos S.A. ORSEP Organismo Regulador de Seguridad de
(Argentinian Water and Sanitation) Presas (Dam Safety Regulatory Agency)
CABA Ciudad Autónoma de Buenos Aires OSN Obras Sanitarias de la Nación
(Autonomous City of Buenos Aires) (National Sanitary Works)
COHIFE Consejo Hídrico Federal PGR Plan de Gestión por Resultados
(Federal Water Council) (Results Management Plan)
COFEMA Consejo Federal de Medio Ambiente PPP Public-Private Partnership
(Federal Environmental Council) PROSAP Programa de Servicios Agrícolas
DALY Disability-Adjusted Life Years Provinciales (Provincial Agricultural
DNAPyS Dirección Nacional de Agua Potable y Services Program)
Saneamiento (National Directorate of PRPH Principios Rectores de la Política
Drinking Water and Sanitation) Hídrica (Guiding Principles of
ENSO El Niño Southern Oscillation Water Policy)
ERAS Ente Regulador de Agua y Saneamiento RHN Red Hidrológica Nacional
(Regulatory Agency for Water and (National Hydrological Network)
Sanitation) SDG Sustainable Development Goal
FAO Food and Agriculture Organization SIPH Secretaría de Infraestructura y Política
GDP Gross Domestic Product Hídrica (Secretariat of Infrastructure and
Water Policy)
GTAP-BIO W Global Trade Analysis Project
SNIH Sistema Nacional de Información Hídrica
IFI International Finance Institution
(National Hydric Network Information
INTA Instituto Nacional de Tecnología System)
Agropecuaria (National Institute of
Agricultural Technology)
C HAPT E R 1

Introduction

Economic and Demographic Context opportunities in some manufacturing subsectors and

in innovative high-tech services (World Bank 2018a).
Argentina is a high-middle-income country, Latin Its economic structure is diversified: the sector with
America’s third-largest economy, with a gross domestic the largest GDP share is manufacturing (30 percent),
product (GDP) per capita of US$22,947.1 It is the followed by transport and communication,
second-most urban country in the region: 92 percent commerce, and real estate (figure 1.1).
of its 44 million inhabitants live in cities.2 The Buenos
Aires Metropolitan Area is the country’s demographic Although the agricultural sector contributes 6 percent
and economic epicenter, with 37 percent of the of GDP,5 derivative agri-food value chains contribute
population and 54 percent, if Buenos Aires province is 57 percent of exports. So, agriculture, decisive in
included.3 Argentina is federal—formed of 23 provinces foreign exchange earnings, is vital to Argentina’s
and the Autonomous City of Buenos Aires (CABA)— macroeconomic stability. The agricultural sector’s
meaning that the provincial states preserve their contribution to GDP rises to 10 percent when the
autonomy under the national government. agri-food chains are included. They also represent
10 percent of national employment, half of it in
Rich in natural assets, Argentina is one of the primary production (Lódola et al. 2018).
world’s largest agricultural producers. Argentina
takes advantage of its fertile land, using 16 percent Growth has often come at the expense of environmental
of its 2.8 million square kilometers for agriculture sustainability, with 12 percent of the country’s forest lost
or livestock. It is the world’s largest exporter of between 2001 and 2014—double the world average.
soybean oil, third-largest exporter of soybeans, and Land degradation due to soil erosion, land salinity due to
twelfth-largest exporter of beef.4 Applying some of inadequate land management or irrigation practices, and
the world’s most modern practices, the agriculture water pollution due to pesticide and herbicide use have
and livestock sectors are leaders in breeding, also followed agricultural growth.
innovation, and agricultural machinery. Argentina’s Argentina has experienced a long-term decline from
natural energy resources include large hydro, wind, relatively high income per capita—a rare case of a
and solar potential and the world’s second-largest country declining from higher into middle-income
shale gas and fourth-largest shale oil reserves, which status. Argentina’s GDP per capita was akin to the
are almost unexploited. And Argentina enjoys major average of a group of rich economies at the start
 2 ARGENTINA: VALUING WATER

Map 1.1 Argentina’s Regions and the Buenos Aires Metropolitan Area
NOA region Cuyo
Bolivia 1. Jujuy 15. La Rioja
2. Salta 16. San Juan
1 Paraguay
Brasil 3. Tucumán 17. Mendoza
2 6 4. Catamarca 18. San Luis
4 3 7 8 5. Santiago del Estero Patagonia region
5
9 NEA region 19. Neuquén
15 11 6. Formosa 20. Rio Negro
16
12 10 7. Chacho 21. Chubut
18 Uruguay 8. Misiones 22. Santa Cruz
17 9. Corrientes 23. Tierra del Fuego
13 Pampean region
14
Chile 19 10. Entre Ríos
11. Santa Fe
20
12. Córdoba
Metropolitan area of
Buenos Aires (AMBA) 13. Buenos Aires
21 14. La Pampa
CABA

22

23

Note: NOA = northwestern; NEA = northeastern.

Figure 1.1 GDP Structure, 2018/2019

8.0% Agriculture, livestock, hunting
13.6% Others and forestry

3.3% Social and health services

4.2% Public
Administration and Defense;
Obligatory Affiliation 29.9%
Social Security Plans Manufacturing
industry
8.5% Real estate, enterprise
and rental act.

3.7% Financial intermediation

11.2% Transport and

communication 4.8% Building

10.1% Wholesale, retail and repairs

Source: Data from National Institute of Statistics and Census 2020.

 3

to the 20th century. It had fallen to only 44 percent adequate planning and investment in infrastructure
of this average as of 2019.6 This erratic long-term and services, leading to “pockets of poverty.” At the
performance has damaged the country’s ability to end of 2019, the percentage of people living in poverty
reduce poverty and increase incomes. The main and indigence in the greater Buenos Aires area was
explanation for the decline is Argentina’s volatile already considerable, standing at 35.2 and 9.3 percent,
macroeconomic environment, reflected in large swings respectively. The outbreak of the COVID-19 pandemic
in economic activity. Recessions in Argentina have raised these figures to 41.6 percent and 11.7 percent.
been frequent and deep. Among the world’s countries,
Institutional weakness and recurrent policy
Argentina has suffered the second-most years in
discontinuity have hampered consensus on the
recession since 1950 (after the Democratic Republic
country’s economic direction going forward. They have
of Congo). In an average recession, Argentina’s GDP
also damaged the regulatory frameworks for public
contracts 3.5 percent per year (World Bank 2018a).
services and reduced compliance with them. Among
Low investment due to economic instability and the
the challenges policy makers face are coordinating
absence of a robust banking sector create major
regulatory frameworks and reconciling diverse
infrastructure deficits.
standards, regulation modalities, and types of service
Argentina has a historically large middle class with providers across jurisdictions. Argentina’s volatility
relatively sound education, public health, and social in the past years has been characterized by a large
protection systems, but also large territorial disparities. deficit, high inflation, and high interest rates. These
Although Argentina’s GINI coefficient measuring wealth factors have harmed water sector performance, as
and income inequality is high in absolute terms, decreasing public investments limit the design and
it is one of Latin America’s lowest. High inflation, implementation of strategic policies.11 The economic
fairly common in Argentina (183 percent in the past crisis due to the global COVID–19 pandemic reinforces
three years), shapes income distribution, with the this situation but also offers an opportunity to consider
poor bearing the largest burden.7 The lack of job more sustainable investments to build resilient water
creation in recent years limited the previous decade’s systems and thus support communities and sectors.
progress on poverty and shared prosperity.8 Argentina This has been reflected in high sector expenditures
has historically had large territorial disparities in and budgets in 2020 and 2021 respectively.12
socioeconomic development, with the northern region
and the Buenos Aires Metropolitan Area as the hot Water Shaping Argentina’s
spots of poverty and basic service deficiencies. Socioeconomic Profile
The COVID-19 outbreak has hit Argentina’s economy Water has largely shaped Argentina’s social and economic
at a moment of significant macroeconomic structure. Agricultural development was based on the
imbalances and social stress. It is estimated that the availability of water for crops and pastures, and on
economy has declined by over 10 percent in 2020 waterways for exports. These activities shaped the
and the unprecedented economic contraction has had economic profile of Argentina since growing grain and
a severe impact on employment and poverty. The by-product exports were mainly channeled through river
implementation of a fiscal stimulus package—worth ports. Since 1996,13 the development of the Paraná,
3.5 percent of GDP9—coupled with an abrupt decline Paraguay, and La Plata rivers’ waterways through
in revenues resulted in a central government deficit of dredging and signaling has decisively concentrated ports
nearly 7 percent of GDP in 2020,10 the largest in more and the grain processing industry on the Paraná coast
than 30 years. (Seillant 1998). Rapid urbanization demanded water and
sanitation infrastructure together with efforts to control
As a result of higher inactivity rates and decreasing
floods, and ensure adequate quality of surface and ground
purchasing power, Argentina’s poverty rate increased
water quality near large cities. And irrigation infrastructure
from 35 to 41 percent in the first half of 2020, with
was demanded as agriculture grew and moved to drier
11.7 million people now living below the poverty line
areas. Those key challenges persist as water continues to
and 3.0 million in extreme poverty (National Institute
shape the country’s socioeconomic profile.
of Statistics and Census 2020). More than half of
Argentina’s poor live in the greater Buenos Aires area, Argentina is among those countries with middle to
by far the greatest concentration of urban and peri- high per capita income and large renewable water
urban poverty in the Southern Cone of Latin America. resources. The distribution of water resources is
Although urbanization has contributed to economic not homogeneous across the country, and water
growth and improved living standards for millions availability limits economic development in the arid
of people, it has not always been accompanied by areas of the west. Water productivity in Argentina
 4 ARGENTINA: VALUING WATER

is low, ranking 104 of 174 countries assessed,14 Regional Challenges

due, above all, to general inefficiency in irrigation
and domestic water use, the sectors of greatest Water security shows worrisome regional trends not
consumption.15 But the possibilities of using resources exclusive to Argentina. Although Latin America and the
better and using water intensively to add value to Caribbean contains one-third of the world’s available
production give Argentina a wide margin of growth. freshwater, about two-thirds of the region’s area are
arid (UNESCO 2010), meaning the demand for water
Water is thus both a basic good and an opportunity exceeds the amount available during certain seasons or
necessary for Argentina’s socioeconomic when poor quality restricts water use.
development. The population needs it for health, to
prevent the spread of disease, and to support human The region has 166 million people without access
capital for future productivity. Agriculture, vital to to safely managed water systems, and 443 million
Argentina’s economy, creates most of the demand without safely managed sanitation—the most
for it. And industry needs a secure supply, without significant water security gap.16 Since handwashing
which it risks considerable economic losses. Securing and adequate hygiene are key barriers to help spread
water’s availability, ensuring efficient and productive the COVID-19, the high transmission rates in the most
use, and controlling excess water such as floods, vulnerable areas of large cities can also be partially
can transform the country’s economy, society, and attributable to the lack of these services.
environment. Latin America and the Caribbean constantly faces
catastrophic hydroclimatic events, such as floods
Water Security as a Growing Global and droughts influenced by the El Niño Southern
Oscillation (map 1.2). In addition, the speed of climate
and Regional Challenge in Latin change, which brings with it higher temperatures and
America and the Caribbean evapotranspiration rates, intensifies the dynamics
of the hydrological cycle and natural precipitation
Global Challenges
variability. In many regions, changing precipitation
Climate change projections for the 21st century indicate or melting snow and ice are altering hydrological
that renewable surface and ground water resources systems, affecting water resources in terms of quantity
will be substantially reduced in most dry subtropical and quality (IPCC 2014). Besides other anthropogenic
regions, intensifying competition for water between effects, climate change has disturbed the Andean
sectors. Climate change also entails a high risk of glaciers, which have lost up to 40 percent of volume
abrupt and irreversible change on a regional scale in and area in the past 50 years (Veettil et al. 2017).
the composition, structure, and function of continental
Fluctuating water availability disrupts the region’s
terrestrial and aquatic ecosystems (IPCC 2014). Global
human capital and productivity, and thus its revenue-
water demand is expected to continue increasing at
generating ability. Inconsistent surface water and
a similar rate until 2050, representing an increase of
groundwater patterns affect rainfed agriculture
20–30 percent above the current level of water use
and irrigated agriculture. Climate variation, directly
(UNESCO 2019).
influencing rural agricultural productivity, also affects
Estimates suggest that if environmental degradation urban populations’ access to food and thus their
and unsustainable pressures on global water resources livelihoods. Since urban areas often depend on a single
continue, 45 percent of global GDP, 52 percent of the source of water, drinking water supply, energy security,
world’s population, and 40 percent of global cereal and industrial productivity are vulnerable to water
production will be at risk by 2050 (UNESCO 2019). Poor security threats.
and marginalized populations will be disproportionately
But the fastest changes are on the demand side. Latin
affected, further exacerbating already growing
America and the Caribbean is no exception to the
inequalities (UN 2018).
global trend of growing water demand. The region’s
In this context, the United Nations’ 2030 Agenda urban population has grown fast in the past few
and 17 Sustainable Development Goals (SDGs) are decades: nearly 80 percent of the population lives in
instruments to face these challenges. These encompass urban areas, making Latin America the world’s most
169 targets for developing and integrating three urbanized region (UN 2019). It also has some of the
dimensions of sustainable development: environmental, world’s most polluted rivers, with almost four-fifths of
economic, and social sustainability. All the SDGs are wastewater directly discharged, untreated, to surface
interrelated and at least five are related to water, water bodies (Koop and van Leeuwen 2017). Land
including SDG 6: “Ensure availability and sustainable use change contributes significantly to environmental
management of water and sanitation for all.” degradation, exacerbating the negative impacts of
 5

Map 1.2 Drought Severity and Flood Occurrence in South America

a. Drought severity b. Flood occurrence

Low (<20) Low (0–1)

Low to medium (20–30) Medium (2–3)
Medium to high (30–40) Medium to high (4–9)
High (40–50) High (10–27)
Extremely high (>50) Extremely high (>27)

Source: Based on Aqueduct Global Maps 2.1.

Note: Drought severity (panel a) is calculated as the average length of droughts from 1901 to 2008. Flood occurrence (panel b) is the number of
floods from 1985 to 2011. Local assessments of drought and floods in Argentina using more specific models and analyses are detailed in chapter 3.

climate change. Thus, water-related ecosystems are Argentina in particular. With a current portfolio in
threatened by expanding urban development and water of almost US$2 billion in Argentina, the World
intense rural agricultural and pastoral practices, which Bank’s projects include the region’s largest operation—
change ecosystem services (figure 1.2). cleaning up the Matanza Riachuelo basin, to benefit
more than 4 million people. The World Bank has
These challenges also apply in Argentina. Increasing
addressed massive floods in the Paraná basin, and also
demand, amid less predictable supply due to
supported projects benefiting urban areas such as the
climate change, has potential effects in all sectors.
CABA, and rural areas in the vast Salado basin. It has
The most vulnerable are often deprived of access
improved irrigation and water supply and sanitation by
to basic services, with significant social, economic,
supporting the Provincial Agricultural Services Program
and environmental consequences for the country.
(PROSAP) and Norte Grande programs.
This report is motivated by the need to explore and
analyze these challenges, as well as the opportunities The opportunity to pursue up-to-date analysis also
for sustainable development based on more efficient motivates this study. Earlier World Bank work assessed
water management. energy and water service quality in the North of
Argentina (World Bank 2017b). The Bank supported
Motivation the country’s environmental assessment, addressing
lack of water and sanitation services, scarcity, and
Firsthand experience of the World Bank team in water quality issues in 2016 and in its Water Resources
operations and analysis in Argentina, together with Management Assessment in 2000. Many findings of
strong engagement with the national government, these and other studies remain valid. But demographic
whose development agenda includes water as an and economic changes, new information on climate
essential element, drives this study. The World Bank change, emerging energy and agricultural technologies,
has a long record of engagement in the water sector and greater attention to the political economy are
of Latin America and the Caribbean in general and reframing the challenges and opportunities.
 6 ARGENTINA: VALUING WATER

Figure 1.2 Total Renewable Freshwater per Capita in Selected Latin American Countries, Including
External Contributions
90,000

80,000
Cubic meters per person per year
70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
1992 1997 2002 2007 2012 2017

Peru, 58400 m3 Bolivia, 51900 m3 Chile, 51100 m3

Colombia, 48100 m 3
Venezuela, RB, 41400 m
3
Brazil, 41300 m3
Uruguay, 49800 m3 Ecuador, 26600 m3 Argentina, 19800 m3

Source: FAO 2015.

And water’s place in the World Bank’s response to the growing demand and climate change dangers, need
COVID–19 crisis also inspires this study. The response to be captured in a more comprehensive view.
focuses on three pillars: protecting lives by containing The approach of this study goes beyond traditional,
the pandemic’s health impact, protecting livelihoods by isolated assessments of water subsectors. Its holistic
minimizing the crisis’s immediate social and economic approach is part of a global trend, as governments
impacts, and protecting the future by preparing for raise the profile of environmental water management
recovery, preventing the next crisis, and rebuilding in the context of their climate change mitigation and
back better and more sustainably. This study is related adaptation agendas.17
to the last two objectives, especially the third.
A holistic view considers water systems at the
Argentina’s commitment to the 2030 Agenda for basin level. While cities are a basin’s major water
Sustainable Development also drives the study’s consumers, it is also important secure an adequate
comprehensive analysis of water management. quantity and quality of water for other productive
Argentina has shown strong commitment to achieve uses and environmental services upstream and
the SDGs. Precisely because of water’s transformative downstream. So, the strategic planning of a water
and multisectoral potential, water security is essential and sanitation utility needs to link with irrigation
to that agenda. Argentina has stepped forward by schemes and hydropower development while
defining key planning instruments (a national water ensuring the entire system’s flexibility amid changing
plan, national water and sanitation plan, national levels of demand and supply. At a smaller scale,
irrigation plan, a new climate change law, and ongoing a holistic view addresses issues cutting across
discussions in Parliament around a proposal for a subsectors, such as coordinated drainage and
water and sanitation law); the creation of the National sewerage, losses in water networks and flooding, or
Directorate for Water Supply and Sanitation, and new water reuse and circular economy challenges.
tools (a National Information System for Water Supply
and Sanitation, and management results plans for The holistic approach also links water with other
utilities). This report builds on these important steps. sectors. Water and human capital are closely related,
with education and health systems influenced
by access to water and sanitation services. The
The Water Security Approach water-food-energy nexus justifies an integrated
Water’s cross-cutting, transformative, and analysis, particularly for a country such as Argentina,
multidimensional importance for Argentina, given which exports “virtual water” in the form of agricultural
 7

products and continues to generate a relatively large Water sector architecture considers both infrastructure
share of electricity through hydropower. and institutions, including financing and governance
(legal framework, policy settings, and sector
The concept of water security captures this holistic
arrangements).
integration. It can be defined as “the availability of an
acceptable, affordable, and sustainable supply of water By assessing water security, this report identifies
for health, livelihoods, ecosystems, and production important water-related challenges and opportunities
that is made available in ways that address adverse that could affect human and economic development.
impacts on the economy, other users including future The report has three parts (figure 1.4). The first
generations, and the environment” (adapted from explains water’s central role in society, the economy,
Grey and Sadoff 2007). The World Bank provides a and the environment, explaining the economic benefits
framework within which to analyze and understand of water and the costs of the current water security
this concept in all its dimensions (figure 1.3). gaps as well as their possible social and environmental
impacts. The second part features water sector
This conceptual framework for water security highlights
diagnostics assessing natural capital, current and
the balance of social, economic, and environmental
future water demand, and the sector’s architecture
outcomes (costs and benefits) from water. It explores
and performance. The third part looks toward 2030,
their determinants by conducting a diagnostic of water
comparing a business-as-usual scenario, in which the
sector performance, considering three dimensions:
challenges identified by the diagnostics continue and
• Water resources management—planning the the opportunities remain untapped, and a proactive
development, distribution, and management of scenario, in which key institutional reforms and
water in order to satisfy the different demands in investments mitigate water-related risks and leverage
quantity and quality, including the environmental opportunities for water to contribute to economic
demand of ecosystems.
growth and poverty reduction. The report’s last chapter
• Mitigation of water-related risks—building adaptive identifies and prioritizes actions for pursuing that
capacity and resilient communities and institutions second, proactive scenario, and thus enhancing water
to reduce the exposure and vulnerability of people security by 2030.
and assets.
This report also presents analyses of diverse data sets
• Delivery of water services—providing not just for
water and sanitation services, but for all productive collected from institutions at all levels. These analytical
uses in industry, irrigation, hydropower, and contributions to the comprehensive holistic water
navigation. assessment of Argentina include:
• Countrywide hydrological modeling at the
macrobasin level, with climate change projections.
• Hydroeconomic modeling to estimate,
Figure 1.3 Water Security: Conceptual Framework quantitatively, the overall economic impacts of
current water security gaps and the cost-benefit
People ratios of investments to close the gaps.
• A public expenditure review of water supply and
vices Mitig sanitation services.
d ser ati
on
te • An update of the 2015 irrigation study carried out
rastructur
ela

of

by the Provincial Agricultural Services Program

nf
wa
r-r

(PROSAP) program financed by the United Nations

very of wate

ter-

Food and Agriculture Organization (FAO) to

e
I

related risks

consider expansion options based on efficiency

Water measures.
endowment
• First steps toward assessing the integral quality
Envi
Deli

of Argentina’s main water bodies through the

ns
y

compilation of a series of water quality data.

titution
m

ron
no

an This report’s main target audience comprises decision

M

es

c
m

ag ur
co

em o makers in the water sector and beyond.

e n t of w ater re s
e

E nt
In particular, the highlighted economic outcomes show
the need to reform policies and institutions, invest
in opportunities, and contribute to a more resilient
economy.
Source: World Bank
 8 ARGENTINA: VALUING WATER

Figure 1.4 Logical Flow of the Report

PART I Peo p l e
The importance of ds
erv
ices Mitig
ati
on Econimic benifits of water and
te
water for Argentina

of
rastructur Costs of water insecurity

ela

wa
nf

r-r
ivery of wate

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e
social and environmental

I
How does water influence economic social and

related risks
Water
endowment
outcomes environmental developement in Argentina?

Envir
Del
ns

my
tit ution

on
no
M

s
na

ce
ur

m
ge

co
so
me
n t of w ater re CHAPTER 2

e
E nt

Where are the economics, social and environmental impacts

coming from?
PART II
Water sector diagnostics
How much water is Peo pl e
Pe opl e there in Argentina? Assessment of Mitig
ices
erv
ices Mitig
ati Assessment of water sector Is there sufficient ds
erv ati
on
ds on How is it distributed te
te
the natural

of
rastructur

ela
architecture stock of

wa
nf
of

in time and space?

r-r
rastructur
ela

wa

ivery of wate

ter-
nf
r-r

capital infrastructure?

e
I
(infrastructure
ivery of wate

ter-

related risks
e
I

What is it used for? Water

related risks

Water
endowment and Is the governance
endowment

Envir
Water availability
Envir

Del
Governance) of the sector ns

my
titutio n

s
Del

ns
my

tit ution assessment

on
I

no
adequate?

s
na

ce
on

ur
no

m
ge

co
M

na so
ce

ur me
n t of w ater re
a

e
m

ge
co

How will these

E nt
me res
o
CHAPTER 3 CHAPTER 4
e

nt
n t of w ater
E
change in the future?

Peo pl e
ices Mitig
Assessment of
erv ati
ds on
water sector
te
of

rastructur
ela

performance
wa

nf
r-r
ivery of wate

ter-

• Water resources management performance

e
I

related risks

Water
endowment • Water services performance
Envir

• Hydrologic risk management performance

Del

ns
y

titutio n
m

on
no
M

na
ce

ur
a

ge
co

me so
n t of w ater re
e

E nt
CHAPTER 5

PART III Application of lessons

The way forward Business as usual learned from the
Economic outcomes of (current challenges diagnosed above diagnostics
2 different scenarios perpetuate or increase by 2030)
towards 2030 under ...on key action
climate change Recommendations to achieve a water
Towards water security
(opportunities identified in CHAPTER 7 security status by
CHAPTER 6
Part II are considered) 2030

Source: Authors.

Notes Perón, Quilmes, San Fernando, San Isidro, San Miguel,

San Vicente, Tigre, Tres de Febrero, and Vicente López.
1. In purchasing power parity, 2019.
4. FAOSTAT data for 2017, available at: http://www.fao​
2. World Bank Data Catalog 2019: Urban population .org/faostat/es/?#data.
(­percent of total population)—Argentina, available at:
https://data.worldbank.org/indicator. 5. Fifty years ago, the agriculture sector represented
10.4 percent of GDP; 25 years ago, 7.1 percent; and
3. Source: National Institute of Statistics and Census 2010. ­today, 5.9 percent. Values calculated as the 5-year aver-
The metropolitan area includes the Autonomous City of age, last data from 2018. Source: Agriculture, added value
Buenos Aires and 34 administrative units of Buenos Aires (percent of GDP), World Bank.
province: Almirante Brown, Avellaneda, Berisso, Beraza-
tegui, Cañuelas, Ensenada, Escobar, Esteban Echeverría, 6. GDP per capita in 2011 purchasing power parity. World
Ezeiza, Florencio Varela, General Rodríguez, General San Bank, International Comparison Program database.
Martín, Hurlingham, Ituzaingó, José C. Paz, La Matanza, 7. As of December 2019. National Institute of Statistics and
La Plata, Lanús, Lomas de Zamora, Malvinas Argentinas, Census, IPC Nacional.
Marcos Paz, Merlo, Moreno, Morón, Pilar, Presidente
 9

8. Between the end of 2017 and 2019, registered employ- IPCC (Intergovernmental Panel on Climate Change).
ment (Public, private and private homes) fell 2 percent 2014. Cambio Climático 2014: Impactos,
and between January 2012 and the end of 2019 it grew adaptación y vulnerabilidad. Resúmenes,
at a rate of 1 percent per year, below the growth rate of preguntas frecuentes y recuadros multicapítulos.
the working-age population (Sources: Ministry of Labor,
Organización Meteorológica Mundial, Ginebra
Employment and Social Security and National Institute of
Statistics and Census). (Suiza): Grupo Intergubernamental de Expertos
sobre el Cambio Climático (IPCC). Contribución
9. Estimates of the Congressional Budget Office, available del Grupo de trabajo II al Quinto Informe de
at: https://www.opc.gob.ar/covid-19/impacto-financiero​ Evaluación del Grupo Intergubernamental de
-del-covid-19-al-5-de-octubre-2020.
Expertos sobre el Cambio Climático. https://
10. Data from Ministry of Finance, available at: archive.ipcc.ch/pdf/assessment-report/ar5​
https://www.argentina.gob.ar/noticias/resultado-fiscal​ /wg2/WGIIAR5-IntegrationBrochure_es.pdf.
-diciembre-2020.
Koop, S. H. A., and C. J. van Leeuwen. 2017. “The
11. In 2018 and 2019, macroeconomic conditions deteri- Challenges of Water, Waste and Climate Change
orated sharply. GDP fell 2.5 percent in 2018 and 1.7 per-
in Cities.” Environmental Development and
cent in the third quarter of 2019. The currency suffered
a sharp devaluation (219 percent between the end of Sustainability 2017 (19): 385. doi:10.1007​
2017 and the end of 2019). The central administration’s /s10668-016-9760-4.
gross public debt jumped from 56.6 percent of GDP in Lódola, Agustin, Roberto Bisang, Rafael Brigo, and
2017 to 91.6 percent in the third quarter of 2019. And
Fernando Morra. 2018. Cadenas de valor
the perceived risk of Argentine assets increased sharply
(by 1,393 basis points between the end of 2017 and agroalimentarias: evolución y cambios
2019). Strict fiscal requirements imposed by a US$57 estructurales en el siglo XXI. 1a ed adaptada.
billion International Monetary Fund loan, including a Ciudad Autónoma de Buenos Aires: Secretaria de
zero deficit in 2019, created difficult investment condi- Gobierno de Agroindustria—DIPROSE.
tions for the government.
INDEC (National Institute of Statistics and Census).
12. During 2020 there was a strong increase in sector in- 2020. Buenos Aires: Instituto Nacional de
vestment, the 2021 budget foresees a deepening of this Estadística y Censos (INDEC).
trend (Source: Ministry of Finance, 2020 budget execution
and 2021 budget). Seillant, Horacio A. 1998. Obras de dragado,
señalización, informatización y
13. In 1996, the first stage of the dredging and beaconing
concession was completed, and the collection of the toll mantenimiento de la hidrovía Paraguay-
rate was authorized (Resolution 177/1996). Paraná: evaluación de beneficios. Buenos
Aires: Subsecretaría de Puertos y Vías
14. Authors’ estimate based on 2015 GDP data from World Navegables. https://portalcdi.mecon.gob​
Development Indicators and water extraction from FAO
.cgi-bin/ar/wxis.exe/iah/scripts/?IsisScript=iah​
(2015), available at: http://www.databank.worldbank​
.org/source/world-development-indicators and http:// .Xis&nextAction=lnk&base=BIBLIO&lang=es&expr​
www.fao.org/aquastat/statistics/query/index.html Search=ZZ&format=detailed.pft
(­consulted in March 2021). UN (United Nations). 2018. Sustainable Development
15. Water productivity is measured in terms of GDP per cubic Goal 6: Synthesis Report 2018 on Water and
meter of water extracted for all sectors. Sanitation. New York, NY: United Nations
16. Joint Monitoring Programme (JMP) data 2017, available at: Publications.
https://washdata.org/data (consulted in March 2021). UN. 2019. World Urbanization Prospects 2018:
17. France and Spain have created ministries of ecological Highlights. Department of Economic and Social
transition with responsibilities for energy and environ- Affairs, Population Division. New York, NY: United
ment, including water. In Spain, this ministry has the rank Nations Publications.
of a vice presidency.
UNESCO (United Nations Educational, Scientific and
Cultural Organization). 2010. Atlas de Zonas
References Áridas de América Latina y el Caribe. Dentro
FAO (Food and Agriculture Organization). 2015. del marco del proyecto Elaboración del Mapa
AQUASTAT Country Profile: Argentina. Rome: FAO. de Zonas Áridas, Semiáridas y Subhúmedas de
América Latina y el Caribe. CAZALAC. Documentos
Grey, D., and C. W. Sadoff. 2007. “Sink or Swim? Water Técnicos del PHI-LAC, N°25. https://www​.cazalac​
Security for Growth and Development.” Water .org​/publico/fileadmin/templates​/documentos​
Policy 9 (6): 545–71. /Atlas_de_Zonas_Aridas_de_ALC​_Espanol.pdf.
 10 ARGENTINA: VALUING WATER

UNESCO. 2019. Informe Mundial de las Naciones en 10 Provincias del Norte Argentino.
Unidas sobre el Desarrollo de los Recursos Recomendaciones para la Mejora del Sector,
Hídricos 2019: No dejar a nadie atrás. París: Buenos Aires. Washington, DC: World Bank
UNESCO. https://www.acnur.org/5c93e4c34.pdf. Group.
Veettil, B., S. Wang, S. Florêncio de Souza, U. Franz, and World Bank. 2017c. Joining Forces for Better Services?
J. Cardia Simões. 2017. “Glacier Monitoring and When, Why, and How Water and Sanitation
Glacier-Climate Interactions in the Tropical Andes: Utilities Can Benefit from Working Together.
A Review.” Journal of South American Earth Washington, DC: World Bank.
Sciences 77: 218–46. doi: 10.1016/j.j.
World Bank. 2018a. Argentina: Escaping Crises,
World Bank. 2017a. Argentina—Plan Belgrano Sustaining Growth, Sharing Prosperity.
Water and Sanitation Services Development Washington, DC: International Bank for
Project: Additional Financing and Restructuring. Reconstruction and Development/World Bank.
Washington, DC: World Bank. https://hubs​
World Bank. 2018b. Informe sobre el desarrollo
.worldbank.org/docs/imagebank/pages​
mundial 2018: Aprender para hacer realidad
/docprofile.aspx?nodeid=27271341.
la promesa de la educación, cuadernillo
World Bank. 2017b. Diagnóstico de la Prestación de del “Panorama general.” Washington,
Servicios de Agua, Saneamiento y Electricidad DC: World Bank.
P A RT 1

Water as an Essential Good

for Argentina’s Sustainable
Development
C HAPT E R 2

Economic, Social, and

Environmental Outcomes

T
he use of water in Argentina has economic, social, represented 56.1 percent of merchandise exports
and environmental outcomes. Economic outcomes during the same period. The agroindustry value chain is
may be productive (benefits) or destructive (costs), responsible for one out of every six jobs. Among value
and this analysis studies the relationships between chains, field crops and oilseeds, which have grown
water and economic development and quantifies fastest, contribute 35 percent of agricultural jobs; wine,
economic outcomes by their impact on GDP. Water’s fruits, vegetables (all irrigated), and industrial crops
major economic benefits come from domestic and contribute 32 percent; meat contributes 23 percent;
productive use, sanitation, irrigation, hydropower, fluvial dairy contributes 9 percent; and agricultural machinery
navigation, and tourism. Its major costs are associated contributes 1 percent (World Bank 2018a).
with droughts, floods, poor water quality, and mainly,
inadequate water supply and sanitation. Water’s social Argentina is a net contributor to global food security.
outcomes encompass its effects on health and on The caloric content of its grain production is equivalent
human capital in general, also considering distributional to the demand of 400 million people (Britos, Saraví,
effects on the poor and most vulnerable. Environmental and Vilella 2010) and is projected to significantly
outcomes relate to water quality and water-related increase in the near future in response to growing
ecosystems and their services. global demand. Paradoxically, about 13 percent of
the total Argentinian population faced serious food
insecurity (and 35.8 percent moderate food insecurity)
Economic Outcomes during the period 2017–2019.1 Food insecurity in
Economic Benefits Argentina is a problem of distribution, not production.

Argentina has used its abundance of fertile land While irrigated land constitutes only 5 percent of the
and water to develop a strong agriculture sector, total cropped land, irrigated crops’ added value is about
historically a key growth engine for the country 13 percent of total agricultural output, with an average
(World Bank 2018a). It ranks among the world’s annual production of US$5.67 billion (FAO and PROSAP
top countries for producing and exporting such key 2015). The production area under irrigation is estimated
commodities as limes, maize, wine, lemons, and at 2.1 million hectares, consuming about 44.2 cubic
soybeans (along with soy by-products). Although, kilometers of water a year, 65 percent surface water
on average, agriculture’s value added contributed and the rest groundwater (figure 2.1). Buenos Aires,
only 8.3 percent of GDP in 2010–19, food exports Mendoza, Salta, and Córdoba provinces, in that order,
 14 ARGENTINA: VALUING WATER

Figure 2.1 Area under Irrigation, by Province, and Crops under Irrigation
a. Size of area (in 1,000s of hectares)

Misiones 0.2
Santa Cruz 2.7
Tierra del Fuego 5
La Pampa 6.8
Formosa 11.3
Neuquen 16.2
Chubut 21.4
Chaco 0.1 22.9
La Rioja 24.5 22.6
Santa Fe 0 62.5
SanLuis 46.7 23
Catamarca 20.8 49.8
Tucumán 34 54.7
Río Negro 94.7
Santiago del Estero 1.4 100.5
San Juan 13.6 89.1
Corrientes 3.3 108.8
Entre Rios 60 55.3
Jujuy 6.7 126.5
Córdoba 136 46.7
Salta 16 175.9
Mendoza 66.3 202
Buenos Aires 300 74.3

0 50 100 150 200 250 300 350 400

b. Percent of area

Others, 5%
Cotton, 2%
Tobacco, 2%

Suger, 7% Fruits, 24%

Other cereals, 7%

Maize, 3%

Wheat, 7% Rice, 13%

Soybeans, 8%

Fodder, 12%
Vegetables legumes,
and tubers, 10%

Source: FAO and PROSAP 2015.

 15

have the largest irrigated areas. About 145,250 farmers production from the mid-1990s. From 1970 to 1993,
depend on irrigation. About 24 percent of the crops 90 percent of the cropped land was in the pampas
under irrigation are fruits, followed by rice (13 percent) region. From 1993 onward, soybean development
and fodder (12 percent). Since these are mostly locally and changing sowing technology rapidly doubled the
consumed, an increase in their supply could lower cropped area and more than tripled production and
prices and mitigate food insecurity. yields. Since agriculture’s expansion into nontraditional
areas, only 80 percent of Argentina’s cropped land is in
Technical improvements, along with the soybean
the pampas today (figure 2.2).
revolution, significantly increased agricultural

Figure 2.2 Area Planted, by Region, and Crops Produced by Rainfed Farming, 1970­–2018
a. Size of regional crops in hectares
45,000

40,000

35,000
Thousands of Hectares

30,000

25,000

20,000

15,000

10,000

5,000

0
70

74

78

82

86

90

94

98

02

06

10

14

18
19

19

19

19

19

19

19

19

20

20

20

20

20
Year
Buenos Aires Córdoba Santa Fe
Rest Pampean Northwest Northeast Cuyo

b. Size of crops in tons

160,000

140,000

120,000
Thousands of Tons

100,000

80,000

60,000

40,000

20,000

0
70

74

78

82

86

90

94

18
98

02

06

10

14
19

19

19

19

19

19

19

20
19

20

20

20

20

Year
Soy Maize Wheat Others

Source: Data from the Ministry of Agriculture, Livestock, and Fishing.

 16 ARGENTINA: VALUING WATER

Access to drinking water and sanitation generates clear About 84 percent of agriculture and by-product
positive economic impacts for direct beneficiaries, exports come through the factories and ports on the
indirect beneficiaries, and economic productivity. The Hidrovía—the Paraguay–Paraná–de la Plata waterway
direct impacts come from two sources. First, savings (map 2.1).3 Since the colonial period of the 16th–19th
are derived from resources released from the higher centuries, this waterway has been key to commercial
costs (of time, transport, and bottled water purchase) transport. In recent decades, it has been essential for
of securing water in other ways—this is the largest expanding agricultural production. Today, it is vital
direct benefit. Second, access to secure and high- for the country´s economic development. The natural
quality service improves quality of life, especially waterway—incorporating the abundant flows of the
health benefits.2 Indirectly, those health benefits Paraná river (averaging 13,900 cubic meters a second,
extend beyond direct beneficiaries, especially in upstream of the Rio de la Plata) and Paraguay river
densely populated areas, and increase productivity (4,700 cubic meters a second)—supports navigation
and employment income. Argentina’s predominant and so regional communication. It has more than
urbanization amplifies such benefits by concentrating 100 ports and a massive grain processing hub. Most
population. of Argentina’s exports use it—and it also links trade
from Paraguay, the Plurinational State of Bolivia, and
Industry has made the largest contribution to the
Mato Grosso do Sul state in Brazil to the Atlantic.
country’s GDP: 31 percent of the total. More than
About 92 percent of containerized cargo, 70 percent of
70 percent of the industrial demand for water is
noncontainerized cargo, and 100 percent of vehicles
satisfied by La Plata basin. More than 50 percent of
loaded and unloaded in Argentinian ports use the La
industrial demand comes from the food, beverage, and
Plata basin terminals.4
chemical products sectors (figure 2.3). Although the
large flows of the basin rivers ensure availability for
The Hidrovía has significantly reduced transport costs
industry, water service discontinuity can be damaging,
by integrating production areas into the market. It
since 44 percent of water used by industry comes from
thus reduces congestion and pollution caused by
the network.
ground transport. River transport’s advantages over

Figure 2.3 Water Use in Industry, Excluding Energy

Other manufacturing industries, 1.0%

Machinery, equipment, and vehicles,

13.9%
Food and drinks,
26.5%

Basic metalliferous industries,

7.6%

Nonmetallic minerals,
3.2%

Textile,
10.1%

Chemical products,
24.7%
Wood industry,
6.5%
Cellulose and paper,
7.4%

Source: Based on FAO (2015).

 17

Map 2.1 Paraguay–Paraná–de la Plata Waterway than 800 kilometers, river transport by barge is most
(Hidrovía) efficient.5
Hydropower is Argentina’s second source for
generating electricity after thermal power, producing
34,000 gigawatts per hour—29 percent of the total
(INDEC 2018 data). Hydropower’s share in Argentina’s
energy is higher than the world average and the
7–8 feet average of countries with similar income, but lower
than the average across Latin America and the
Caribbean (LAC) (figure 2.4). In general, for all countries
in LAC, hydropower’s share in the energy matrix is
decreasing.
Hydropower generation contributes at least
0.2 percent of GDP.66 Hydropower has an installed
capacity of 11,100 megawatts7 (MW) and projects
identified for 9,200 MW (figure 2.5).8 Since 2000,
10 feet
infrastructure has been completed for only 188
MW. This slower-than-expected progress in power
generation correlates to economic stagnation, as the
country has become a net energy importer.9 Power
generation has less impact on employment than
Up to 25 feet on the economy—returning Argentina to economic
growth would require increasing its generating
Up to 34 feet
capacity (Beyrne 2015).
Multipurpose dams bring additional benefits. The benefits
include using large reservoirs to control river floods,
accumulating water for irrigation, and providing water
Source: Quiroz (2016). for drinking, recreation, navigation, or industrial use.
Note: The noted depths correspond to existing projects (Ministry of Efforts to develop agriculture along the Río Negro valley
Agriculture, Livestock, and Fishing). or along rivers in Mendoza and San Juan, navigate
the upper Paraná, and protect many cities from floods
depend on these dams. Their reservoirs are attractive
for sports, recreation, and real estate development
road or rail transport include greater load capacity, (IAE 2016). The 2017 National Water Plan, citing these
lower energy consumption, lower investment and benefits, added that they attract permanent residents to
maintenance costs, and lower transport costs over regions with low population density. These projects can
long distances. The alternatives ports to those of have high associated environmental impacts, and their
the Plata basin for agricultural exports are those in overall viability must be evaluated in the context of the
southern Buenos Aires province, which are deeper, basin, on a case-by-case basis.
so overseas freight costs would fall somewhat.
But to get to them, grain would generally have to Economic Costs
travel long distances by train, making freight more
The economic cost of the water security gap in
expensive and increasing volume more than existing
Argentina is at least US$11.8 billion a year, or
infrastructure could support. The estimated unit cost
2.2 percent of GDP. This figure results from analyzing
for transporting grains, oils, and by-products by truck
the changing supply of production factors caused by
is US$0.08 per ton-kilometer; by rail, US$0.04; and
shocks from current gaps in service levels, impacts of
by waterway, US$0.02. In general, for distances up
floods and droughts, and the poor quality of surface
to 300 kilometers, trucks are more competitive; from
water (table 2.1).10
300 to 800 kilometers, the railway is; and for more
 18 ARGENTINA: VALUING WATER

Figure 2.4 Energy by Type of Generation in Argentina, and Hydropower as a Share of Electricity
Generation in Selected Latin American Countries and the World
a. Size of energy generation b. Hydropower’s share in select countries, 1990–2014
(Gwh), by type, 2013–17 100
160

Percentage share of electricity

140
80
GWh (Giga Watts hour)

120
100

generation
Thermal 60
80
60 40
Nuclear
40
20
Hydraulic
20
Importation 0
0
3

14

17

0
92

94

96

98

00

02

04

06

08

10

12

14
1

9
20

20

20

20

20

19

19

19

19

19

20

20

20

20

20

20

20

20
Year Year
Argentina Brazil Chile Colombia
Peru Upper middle income World
Latin America and the Caribbean (excluded high income)

Source: Based on National Statistics and Censuses Institute data, and World Development Indicators, World Bank

Figure 2.5 Installed Hydropower Capacity Greater than Five Megawatts, 1950–2019
14,000

12,000

10,000
Power (MW)

8,000

6,000

4,000

2,000

0
1940 1950 1960 1970 1980 1990 2000 2010 2020

Note: Includes dams with more than 5 megawatt generating capacity, including full capacity for Yacyreta and Salto Grande. Yacyreta is assigned
to 1998, but its gradual introduction was not complete until 2011.

The lack of drinking water service and, above all, water from the network—plus the benefit of increased
adequate sanitation for a large part of the population consumption (incremental consumer surplus).
are the largest contributors to the economic costs For sewerage, to estimate the effect of sewerage
of the water security gap. For drinking water, the coverage extension programs, the market values of
economic cost of lacking access is estimated from homes that are statistically similar in observable terms,
the resources released—calculated as the difference except with and without sewers, were compared
between the cost of water to those without network using hedonic pricing with a propensity score matching
access (for bottled water, transport) and the cost of technique.
 19

Table 2.1 Cost of the Water Security Gap

Partial equilibrium What does it How is it measured? Partial equilibrium Inputs and overall outcome
model measure? model results in the general equilibrium
(economic cost as model GTAP BIO-W
% of GDP)
Impact of lack of Benefits perceived Hedonic prices, −0.83 Labor marginal productivity
sewerage connection by those currently variation in prices of shock (−2.10 percent), in all
without service houses with similar sectors
features with and
without sewerage
(propensity score
matching)
Impact of lack Avoided costs + −0.33
of piped water consumer surplus +
coverage annual investment
payment linked
to the increase in
consumption
Impacts on Impacts on sales Multivariable regression −0.16 Total factor productivity shock
businesses due to due to water analysis (World Bank (−0.22 percent) in all sectors
discontinuity in shortages Enterprise Survey except agriculture and mining
water supply service database)
quality
Impacts of Income losses Fixed effects panel −0.61 Total factor productivity shock
hydrometeorological resulting from regressions: water in agriculture
shocks on rainfed hydrometeorological availability for rainfed (−7.65 percent)
agriculture (floods shocks agriculture and
and droughts) production; variable
selection through Lasso
Impacts of urban Asset losses Capital losses, −0.19 Aggregate capital stock
flooding estimated with the (−0.05 percent)
Unbreakable model
(using the SSBN model
for depth distribution),
are expressed in
equivalent annual
value to compare
with GDP
Impact of the poor Property price loss Hedonic prices; −0.08 Capital marginal productivity
water quality of differences in house shock
surface water bodies prices because (−0.84 percent in the
of turbidity and real estate sector or
chlorophyll −0.104 percent in other
industrial services)
Recreation costs The nonavailability −0.01 Total factor productivity
of the La Plata river shock (−0.25 percent) in
for swimming and recreation and other services
recreation has costs for (or −0.02 percent in other
tourism and recreation industrial services)
Total impact −2.2 percent of GDP

Note: Summary of the results of partial equilibrium models, and their transformation into inputs for the general equilibrium model of the Global
Trade Analysis Project (GTAP-BIO-W).
 20 ARGENTINA: VALUING WATER

The impacts represent 0.33 percent11 of GDP for the soybeans, has led to recurring loss of production
gap in drinking water service and 0.83 percent12 of (figure 2.7). For example, the production of the 20
GDP for the gap in sewerage.13 Both measurements main crops fell 32 percent in 2009 and 30 percent in
assess direct impacts on the population but do not 2018, years of severe drought.15
capture other impacts such as reducing costs to the
Losses in rainfed agricultural production caused
state health system for the treatment of diarrheal
by water deficits or excesses are estimated at an
diseases (the main diseases suffered due to water of
average of 7.65 percent a year of optimal average
inadequate quality).
production. This means an impact on GDP of
Industry suffers notable losses due to inadequate 0.61 percent, interpreted as a primary effect on the
water service quality. The reliability of water network economy.16 This was calculated through fixed-effects
service continuity is at issue. Argentina’s level of panel regressions between hydrologic variables
service discontinuity, though not as extreme as in related to water availability for rainfed agriculture and
some countries in the LAC region, is still noticeable production. Droughts produce far greater damages
(figure 2.6). Based on data from the Global Enterprise than floods.17 The impacts on irrigated agriculture of
Survey, Argentine companies face an estimated water deficits or excesses were considered negligible
0.2 days a month without service (with each episode at present, since no significant widespread losses
lasting about 4 hours). This adds up to 8.8 hours a year in irrigation areas have been detected.18 But the
without water. This reduces GDP by 0.16 percent14 low efficiency of irrigation also implies a substantial
compared to a scenario in which service is unbroken. opportunity cost.19
The expansion of rainfed agriculture entails major Climate shocks’ direct effects on agricultural production
exposure to climate variability. Water availability is damage Argentina’s economy. Given Argentine
the main limitation of rainfed farming in the center exports’ dependence on agricultural production,
and northeast humid and semiarid zones, where agriculture’s consequent importance to earning foreign
oilseeds and cereals are cultivated. The challenge of exchange, and the sensitivity of Argentina’s balance
cropping in these areas is driven by rainfall variability of payments, the effect of climate shocks in rainfed
but also inefficient water use due to soil degradation. agriculture have a clear impact. The macroeconomic
The increased cultivated area, especially of rainfed model used in this study shows that they increase

Figure 2.6 Continuity of Water Network Service for Businesses

25 1,000

6
100

6
10
4

1
2

0 0.1
r

ic

as

ia

rú

a
do

do
a

ua
gu

al

tin

bi
bl

liv

Pe
ur

gu
em

m
lva

ua
pu

ug
ra

en
Bo
nd

ra

lo
ca

Ec
Re

Ur
Sa

at

g
Ho

Pa

Co
Ar
Ni

Gu
n
El

ica
in
m
Do

Latin American Countries

Average days without water per company per month (left axis)
Average duration of the cut for those who had cut (in hours) (left axis)
Water insufficiency (hours per year) (right axis)

Source: Compilation based on Global Enterprise Surveys, World Bank.

 21

Figure 2.7 Planted and Harvested Area and Yield for Rainfed Farming, and Production of Argentina’s
20 Main Crops, 1970–2018
a. Harvested area and yield of rainfed agriculture b. Production of 20 main crops

100 4,000 35
90 3,500 30
80
3,000
70 25 2018 (–30%)

Billions of US$
60 2,500
Percent

20
50 2,000 2009 (–32%)
40 15
1,500
30 10
1,000
20
500 5
10
0 0 0
70
73
76
79
82
85
88
91
94
97
00
03
06
09
12
15
18

1970
19 73
19 74
19 76
19 78
19 80
19 82
19 85
19 86
19 88
19 90
19 92
19 94
19 96
20 98
20 00
20 02
20 04
20 06
20 08
20 10
20 12
20 14
20 16
18
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20

19
Source: Data from the Ministry of Agriculture, Livestock, and Fishing.
Note: Left: blue line and left axis—area sown and harvested; green line and right axis—yield in kilograms per hectare. Right: production of
Argentina’s 20 main crops, in billions of US$ at 2017 prices.

inflation by between 1.21 and 2.35 percentage points the floods most affecting the economy and the
annually by reducing the supply of agricultural products population happened when El Niño Southern Oscillation
and the availability of foreign exchange.20 effects caused tributaries in the La Plata basin to
overflow in the Mesopotamian provinces.
The impacts of droughts on livestock are unclear. This
study did not find a significant correlation between Since degraded water quality triggers various quality-
specific dry periods and decreased numbers of livestock of-life losses, the subsequent costs are not always
(currently 54 million head). Changes in the number easy to quantify. In addition to the impacts on health
of livestock, observed at 12- or 24-month intervals, captured in the drinking water and sanitation model,
are also subject to other variables such as markets, deteriorated water quality in main water bodies
regulations, and alternative land uses. Impacts in the increases the cost of water treatment for further use;
dairy sector, such as closures of dairy farms, were also and harms recreation opportunities and environmental
recorded (see appendix B). Yet, droughts do affect assets such as fluvial and marine biodiversity. Although
animal production by increasing the prices of grain capturing the economic costs arising from all these
and derivatives used in their diet. The production of impacts is complex, this study has determined some,
nonruminant animals such as pigs and poultry (fed resulting in an estimated cost of 0.09 percent of GDP,
with distillers dried grains, used as high-protein feed) which are considered conservative.25 The damage
fell by as much as 13 percent.21 affects the following:

The average annual costs of recurring floods in urban • The quality of life of inhabitants of the shores
of polluted bodies of water. Through maps
areas in Argentina are estimated at about US$1 billion
of turbidity and chlorophyll-a concentrations for
a year in lost assets (0.19 percent of GDP) and US$1.6 the entire country, available through remote
billion in total loss of well-being.22 The figure for loss of observation (UNESCO 2018), the hedonic pricing
assets is a conservative way to measure the economic method was used to determine the impact on the
impacts of floods. Urban flood damage also includes value of properties next to polluted water bodies.
deaths,23 service disruptions, and other items not Turbidity is associated with pollution and erosion.
monetized here. The analysis uses the World Bank’s Chlorophyll-a is a proxy for eutrophication resulting
Unbreakable model, based on global estimates.24 from excess nutrients in water, created mainly by
fertilizer runoff.
Fluvial floods account for nearly 70 percent of all flood • Recreation opportunities otherwise offered
damage, much more than pluvial floods (30 percent). by polluted water bodies. The analysis focused
In the 1980s, during El Niño events, major floods on the metropolitan Buenos Aires area and to
occurred in the riverine areas of the Río de la Plata the south, near the Río de la Plata coast, where
basin, devastating important urban centers. Some of noticeable pollution keeps more than 14 million
 22 ARGENTINA: VALUING WATER

residents from using the coast for recreational In the Buenos Aires Metropolitan Area (AMBA), which
swimming. More specifically, the evaluation is ground zero for the COVID-19 pandemic in Argentina,
assessed the impact of water quality on households low-income neighborhoods are being hit the hardest
up to 100 kilometers from the riverbanks by sanitary and economic crises. There are three
(14.8 million persons, equal to 37 percent of main factors driving the high vulnerability of AMBA’s
Argentina’s population). The economic impact on
this population was estimated based on the costs of poor: crowded living conditions; high dependence
traveling to other areas offering similar recreation on informal economic activities, which undermines
opportunities.26 compliance with lockdown policies; and lack of access
to safely managed WASH services. A methodology
prepared by the World Bank to predict contagion
Social, Health, and hotspots for COVID-19 in cities uses access to water
Distributive Outcomes supply and sanitation services, and population density,
as the main identification criteria (Bhardwaj et al.
Water insecurity reduces a country’s human capital.
2020).
Water and sanitation are closely tied to each indicator
of the World Bank’s Human Capital Index (figure 2.8), Argentina has a lower incidence of waterborne
considered a measure for a country’s development diseases than its peers. Of 14 selected countries
potential.27 with a GDP per capita of US$15,700–US$23,500—like
Argentina’s US$18,64529—Argentina ranks among
Safe water supply, sanitation, and hygiene (WASH)
the four with the lowest index of disability-adjusted
are essential to prevent disease and protect human
life years (DALYs)30 per 100,000 inhabitants due to
health during infectious outbreaks. In the context
diarrhea attributable to inadequate drinking water and
of the COVID–19 pandemic, frequent and adequate
sanitation services (figure 2.9).
handwashing is one of the most important,
economical, and effective ways to prevent infection Lack of access to drinking water causes about
and spread. But 11.4 percent of households in 85 percent of disability-adjusted life years in Argentina,
Argentina face serious difficulties in complying with and lack of access to sanitation about 15 percent.31
this recommendation28 and therefore these risks peak The percentages suggest that diarrhea from
in densely populated areas with low coverage of inadequate service may be related to factors such as
WASH services. the unserved population’s vulnerability and exposure

Figure 2.8 Human Capital Index and the Coverage of Improved Sanitation and Improved Drinking Water
a. Improved sanitation and HCI b. Improved drinking water and HCI
0.9 0.9

0.8 0.8

0.7 0.7
Human capital index
Human capital index

0.6 0.6

0.5 0.5

0.4 0.4

0.3 0.3

20 40 60 80 100 40 50 60 70 80 90 100
Improved sanitation (percent) Improved drinking water (percent)

Sources: Andres et al. 2018; Human Capital Index from World Bank (2018b); improved sanitation and improved drinking water from the Joint
Monitoring Programme for Water Supply and Sanitation (WHO/UNICEF 2015).
Note: In panel a, the R2 value for the linear regression model is 0.6898. In panel b, the R2 value for the linear regression model is 0.6201.
HCI = Human Capital Index.
 23

Figure 2.9 Disability-Adjusted Life Years from Diarrhea due to Inadequate Water and Sanitation in
Selected Countries, per 100,000 Inhabitants
a. Select countries with less than 60 DALYS b. Select countries with more than 60 DALYS

60 25,000 1,200 25,000

DALYS ea. 100,000 inhabitants

50 20,000 1,000 20,000

GDP per capita

40 800
15,000 15,000
30 600
10,000 10,000
20 400

10 5,000 200 5,000

0 0 0 0
ro

us

ia

ia

ico

n
s
iu
in

an
Ir a
ta

ija

Ir a

bo
ar

an
eg

ar

rit
ex
nt

hs

na
ba

tsw
lg

Ga
l

m
n

Be

au
ge

M
k
Bu

Pa
te

er
Ro

za

Bo
M
Ar
on

Az
Ka
M

Inadequate water Inadequate sanitation GDP per capita

Source: Based on World Health Organization and World Bank data, 2016.
Note: The countries selected have per capita GDP of between US$15,700 and US$23,500. One disability-adjusted life year represents the loss of
the equivalent of one year of full health. DALY = disability-adjusted life year.

to unsafe alternative sources. Waterborne diseases Unavailability of water and sewerage service seems
during pregnancy or childhood affect an individual’s also related to infant mortality and low birthweight
development, including cognitive development. (map 2.2).
Disease, malnutrition, lack of spending by parents, and
difficulties associated with poverty prevent children Floods increase harm to physical and psychological
from getting the most out of school. These difficulties health. Harm ranges from accidents to mental
only become worse with age (World Bank 2018b). health effects, to increased incidence of diseases

Map 2.2 Drinking Water and Sewerage Coverage, Infant Mortality, and Low Birthweight

Sources: For data on drinking water and sewerage coverage, National Institute of Statistics and Census of Argentina; for infant mortality, PAHO
(2019); for low birthweight, Longhi et al. (2018).
Note: Drinking water coverage, 2010; sewerage coverage, 2010; infant mortality, 2009–12 rate per 1000; low birthweight, 2009–12.
 24 ARGENTINA: VALUING WATER

Map 2.3 Flooded Area, by Department, and Risk of Dengue, 2020

a. Flooded area b. Risk of dengue

Flooded area
(percentage) 100 years
0–10
10–20
20–30 Environmental risk
30–40 Dengue 2020
40–50
50–60 Low
60–70 Medium low
70–80 Medium high
80–90 High

Sources: Map of flooded area based on Fathom. Data on risk of dengue, Geoservices of the National Commission for Space Activities (Comisión
Nacional de Actividades Espaciales, CONAE).

such as dengue, zika, and leishmaniasis, to The social sectors with less resilience are more
outbreaks of diseases caused by water pollution exposed to COVID–19. They have the least access to
(leptospirosis) and by rodents being flooded out drinking water and sanitation services and the greatest
of their nests (hantavirus). Areas with recurrent exposure to disasters such as urban floods, which,
flooding coincide with the medium-high to high if they occurred simultaneously with the pandemic,
risk of dengue (map 2.3). There were 1,820 would worsen its consequences.
dengue cases in Argentina in 2018 (PAHO
2019). In this regard, floods, usual in vulnerable In rural areas, exposure to unsafe water among
neighborhoods in densely populated areas, isolated indigenous populations perpetuates
can also enhance the impacts of the COVID-19 vulnerability and poverty conditions. The indigenous
pandemic. communities and disperse rural populations of certain
provinces in the chaco-pampean and northwest region
Distributive Impacts on are the most affected, and have the highest rates of
exposure to unsafe surface water and groundwater
Vulnerable Sectors
(in many cases due to arsenic) (Villaamil Lepori,
Approximately 36 percent of the population without Garcia, and Swiecky 2007; RSA-CONICET 2018). While
drinking water access and 45 percent without significant, comprehensive interventions are under
sewerage access is poor.32 Based on Argentina’s way for the indigenous population in some provinces
Permanent Household Survey for large urban like Chaco, isolated settlements in those provinces still
agglomerates in 2018, 26 percent of those in the lack secure access to water. These rural locals invest
lowest income quintile have no drinking water access, significant amounts of time—up to 6 hours a day,
and 31 percent have no sewerage access (figure 2.10). mainly by women or young girls—in carrying water
The most vulnerable population is also the most from unsafe sources, at the expense of education and
exposed to unsafe or polluted water sources, or else productivity.33
gets safe water only by paying up to 460 percent
more than people connected to the network In floods, poor households, despite suffering only
(World Bank 2014). minor asset losses, lose more well-being as measured
 25

Figure 2.10 Population without Access to the Drinking Water Network and Sewerage Network,
by Income Quintile
a. Percentage without access to networked water supply b. Percentage without access to sewerage
Nonpoor

5 11.5 5 9.0

4 15.3 4 15.4
Income quintile

3 23.8 3 19.9

2 23.8 2 24.5

1 25.6 1 31.3
Poor

0 10 20 30 0 10 20 30

Source: Data from Permanent Household Survey, Argentina, first quarter of 2018.

by consumption than nonpoor households do. population affected by floods lives below the poverty
Socioeconomic resilience, understood as the ability line (figure 2.12).
to recover from a shock,34 is much higher in nonpoor
households than poor ones. Although the loss of assets Last, if the La Plata river had adequate water quality
is important, the loss of well-being is even more for recreational use, the benefits for the 20 percent
important due to the sacrifices that poor households of the population with the lowest income would
have to make to recover the quality of life enjoyed be triple the benefits for the 20 percent with the
before the flood (figure 2.11). Taking into account highest income, measuring the impact in income
government aid for those affected by floods, the per capita (figure 2.13). Water quality for swimming
model estimates that the highest-income population and recreation affects the populations near the
(80 percent) loses 2.5 times more assets per capita riverbanks, who are generally poor. It also affects
than lower-income populations (20 percent), but people from farther away who might use the
lower-income populations lose 3.3 times more well- river but instead must substitute more expensive
being than higher-income ones. About half the urban alternatives.

Figure 2.11 Flood Impacts on Social Sectors, by Income, 2018

140 120
US$ (PPP 2011) per capita

120
Socioeconomic resilience

100
100
80
(percentage)

80
60
60
40
40
20 20

0 0
Poor Nonpoor Total
Loss of well-being Loss of assets Socioeconomic resilience

Source: World Bank. Analysis derived from the Unbreakable Model. https://openknowledge.worldbank.org/handle/10986/25335.
Note: See appendix B for methodology. Resilience is measured as ability to recover from a shock calculated as a fraction of asset losses over
well-being losses.
 26 ARGENTINA: VALUING WATER

Figure 2.12 Urban Population Affected by Floods, by Income Quintile, April 2017–March 2018

Nonpoor
5 6.9

4 14.3

Income quintile
3 18.8

2 26.0

1 34.0
Poor

0 10 20 30 40
Percentage of total affected by floods

Source: Data from the Permanent Household Survey, Argentina.

Note: As of March 2018, the population living below the poverty line encompassed the first quintile and part of the second.

Figure 2.13 Limitations on Recreational Use of La Plata River due to Water Degradation,
by Income Quintile
Nonpoor

5 0.25

4 0.15
Income quintile

3 0.86

2 1.05

1 0.72
Poor

0 0.2 0.4 0.6 0.8 1.0 1.2

Impacts in percentage of Income per Capita

Source: Data from appendix B.

Note: Limitations are measured as impact per capita divided by income per capita.

Gender less able than men to carry out personal development

activities outside the household, such as work, study,
Women are disproportionately harmed by water or health care tasks. Men go back to work sooner
supply and sanitation problems. They often suffer after a flood, while women remain at home longer,
from the lack of safe water before others in the taking responsibility for restoring normal living
household, due to their often central role in cooking, conditions.36 Women already have fewer years of
childcare, and managing health and hygiene. education and lower income than men,37 and the
As mentioned, in some rural areas in Argentina, impacts of flooding further constrain their economic
women and girls still spend considerable time development opportunities.
fetching water from sources that are often unsafe,
a task that also limits the opportunities for their Globally, women are underrepresented in the water
economic development. sector, particularly at technical and managerial
levels.38 The underrepresentation deprives the sector
Flooding affects women and men differently. of numerous benefits gender diversity offers for
According to a recent study in the Autonomous City organizational outcomes. In Argentina as elsewhere,
of Buenos Aires,35 during flood events, women are women’s labor force participation is lower than men’s,
 27

and the water sector is no exception (MTEySS 2018). The interprovincial conflict over the Atuel River between
Since gender roles in work relate directly to labor force Mendoza upstream and La Pampa downstream
participation, water-related activities (besides fetching illustrates disputes over water availability. The conflict
water) are usually relegated to men, along with between these two provinces over the use of water
construction, engineering, and the operation of large from the Atuel River has been widely discussed. In
machinery. 1987, the Supreme Court ruled that La Pampa would
receive water once existing water rights in Mendoza
A 2013 study of 345 companies in six countries were met. Since then, too little water has been
of LAC revealed that those with women on their available for the irrigated area in Mendoza. Water
executive committees reported over 40 percent availability is clearly declining due to climate change,
higher average return on equity, and earnings before as in all Central Andean river basins. In 2008, La Pampa
taxes and income margins, than those without proposed a series of investments to be financed by the
female participation (McKinsey & Company 2013). national government for increasing water use efficiency
Recognizing these facts, AySA, the largest utility in in Mendoza, with the water eventually saved to be
the country, adopted a variety of measures under its shared between the two provinces. But the agreement
newly appointed female president to address gender was never ratified by the Mendoza parliament, which
gaps, and is committed to promoting women’s career claimed the proposed interventions were nonviable
advancement opportunities to improve its operational technically, economically, and environmentally. And the
and financial performance, and crisis response national government did not secure funding for any of
capacities going forward.39 the proposed investments. In 2014, La Pampa filed a
lawsuit for environmental damages, demanding that a
A gender equality clause included in a collective work
minimum ecological flow be established. In the absence
agreement with a water and sanitation union is one
of an agreement between the parties, the Supreme
of 109 agreements with such clauses in Argentina.
Court decided to set as an interim goal a minimum
More data are still needed to fully understand gender
permanent flow of the Atuel River of 3.2 m3/s on the
inequalities and their causes, in order to propose
border between La Pampa and Mendoza.41
actions to increase women’s participation in utilities
and in water sector organizations. The Gender The case of La Picasa Lake, shared by the Santa Fe,
Commission of the National Water Council (COHIFE) is Córdoba, and Buenos Aires provinces, is an example
working to incorporate the gender perspective in water of an externality due to increased uncoordinated
resources management, through the dissemination of drainage, causing the lake to overflow and flood
information and seeking awareness through continuous more than 30,000 hectares of arable land. La Picasa
training. basin has undergone several changes not only in
precipitation but also in land use and the construction
Conflicts over Water of several irregular sets of water infrastructure that
modified drainage and surface runoff (Salva 2018).
Within the Water Security Framework, conflicts over The gradual expansion of drainage infrastructure has
water are clearly negative social outcomes resulting altered the basin’s natural system. Despite important
from a wide range of factors. These conflicts are milestones achieved by the La Picasa Lake Basin
related to competition for surface and/or ground Committee and the construction of infrastructure
water resources, and to the existence of externalities works to regulate water excesses to reduce flood
generated by anthropogenic events, both for water risks, conflicts resulting from the lack of interprovincial
uses, and for transfers of externalities such as pollution coordination continue (OECD 2019).
or floods (intensified by natural phenomena such as
extreme weather conditions) that involve litigation The case of the Salí–Dulce River Basin illustrates
between private parties and the government, litigation disputes based on extraneous events that reduce
between provinces, and competition between water quality. The upper part of the basin in Tucumán
institutions and users of the same jurisdiction (national province has considerable urban and industrial
or provincial). Governance gaps at the root of many of development. As a result, the Salí–Dulce River carries
these conflicts are assessed in chapter 4. substantial loads of organic matter due to excessive
waste dumping. The main pollution sources are sugar
Interprovincial and interstate conflicts in federal refining and, to a less extent, citrus fruit production,
countries are frequent. In these countries, jurisprudence which occur during the dry season, when low flow
and legislation on environmental flows consider limits the dilution capacity of the river. The pollution
economic and social factors, and the balance of extends to the Hondo River reservoir, harming the
damages and benefits, between the parties and with environmental system and the downstream Santiago
respect to the national economy.40 del Estero province.42 This extreme pollution led to
 28 ARGENTINA: VALUING WATER

creating the Interjurisdictional Committee of the Salí– Yungas, Paranaense jungle, and Andean Patagonian
Dulce River Basin between the provinces that form forests.44
part of the basin to reduce pollution and pursue other
Wetlands, highly dynamic and sensitive hydrological
objectives.43
systems, provide numerous ecological services.
They control floods and mitigate and protect against
storms and peak flows, cycle nutrients, recharge
Environmental Outcomes aquifers, retain and stabilize sediments, and preserve
biodiversity. With the passage of national law number
Ecosystem Services
23,919, Argentina approved the Convention on
In Argentina, 87 percent of ecosystem services related Wetlands of International Importance (Ramsar sites).
to water are contributed by 5 of the 17 existing There are currently 23 Ramsar sites with a total area of
ecoregions (map 2.4). There are methods to estimate 5.6 million hectares.45
the economic benefits from ecosystem services in
The wetlands of the Pampean region are characterized
monetary terms, which help quantify the importance of
by their rich diversity and high number, represented
ecosystems and their contribution to human well-being
by a vast amount of shallow, brackish or salty lagoons.
and socioeconomic development. These methods are
Their sustainability depends on rainfall and the existing
also useful to establish comparisons with benefits from
water balance, the drainage characteristics of the
other productive uses. In Argentina, ecosystems on the
soils, and the depth of the water table (Benzaquen
edge of the La Plata River Basin—the Iberá wetlands
et al. 2017). One of the main impacts they suffer is
and the Paraná delta—are the most important due
the increase in their trophic state, which is dependent
to their high proportion of wetlands, followed by the
on the nutrient load as a result of agricultural activity,

Map 2.4 Average Value of Ecological Services (Left), Potential Area Occupied by Wetlands (Center), and
Forest Regions (Right)

1 point = 10 U$S/ha Wetland prevalence Other lands

Other forest land
Forest land

Source: Viglizzo and Carreño 2011; Benzaquen et al. 2017; Forest Evaluation System Management Unit data .
Note: The average values of ecosystem services (1 point = US $ 10 per hectare) were calculated using the values of Costanza et al. (1997).
The map on the right depicts the Andino Patagónico forest, El Chaco National Park, Espinal, Misionera jungle, and the Tucumano Boliviana jungle
(Costanza et al. 1997).
 29

morphometry, and the time of water renewal. The 26,331/2014), stabilizing at around 0.4 percent a
transformation process of agricultural-livestock year (SAyDS 2018a), though in certain provinces such
production modes together with water management as Chaco, it is as high as 0.8 percent (UMSEF 2019).
and the development of hydraulic works are the main But the Gran Chaco region lost 3.8 million hectares
factors affecting the hydrological dynamics of wetlands, of natural forest from 2000 to 2019 while agriculture
the loss of wetland surface, fragmentation, loss of and livestock activity increased by 4 million hectares.48
connectivity, and degradation (Benzaquen et al. 2017). The carbon equivalent emissions of the lost native
Channels built to evacuate excesses generate negative forest in 2017 were 45.31 million tons and in 2018,
effects during dry seasons, both on water quantity and 46.74 million tons (UMSEF 2019). The increase in the
quality, due to the increase in the concentration of salts loss of native forest at the national level in 2017 and
and nutrients. 2018 was mainly due to forest fires, mostly in the
Espinal regions, with La Pampa being the province that
The Paraná Delta presents untapped potential for a
registered the highest percentage of total affected area
sustainable mix of socioeconomic and environmental
(SAyDS 2018a).
services. One of the largest wetland areas consist
of the estuaries, marshes, and lagoons, mainly of Land degradation is a major environmental problem
fluvial origin, located or closely linked to the current in Argentina that can worsen the effects of droughts.
floodplain of the Paraná River. The Paraná Delta is a Approximately 12 percent of the country’s surface
macro wetland system of the Paraná–Paraguay river has high rates of erosion, which are concentrated in
corridor shared by Santa Fe, Entre Ríos, and Buenos arid and semi-arid areas with steep slopes and low
Aires provinces. The region is under continuous threat vegetation cover such as Patagonia, Cuyo, and the
from livestock activity, the extraction of natural northwestern region (NOA). Arid and semiarid regions,
resources, and urban development and infrastructure, such as the Gran Chaco, are particularly vulnerable,
which change drainage patterns and degrade the and water and wind erosion are the main drivers
ecosystem. The Strategic Plan for the Conservation and for land degradation.49 According to trends in land
Sustainable Use of the Paraná Delta Region (PIECAS-DP) productivity,50 one of the indicators most often used
proposes an interjurisdictional agreement to establish to monitor trends in land degradation, 57.1 percent
sustainability guidelines for territorial interventions of the land area shows a stable trend, 5 percent
to promote combined traditional socioeconomic shows a trend positive, and 37.9 percent a negative
activities such as livestock, forestry, beekeeping, trend (map 2.5). The attributable causes combine
fisheries, and others, compatible with conservation natural phenomena (deposition of volcanic ash and
and sustainable use. dry or wet cycles) or anthropic phenomena such as
The Bajos Submeridionales system, covering parts of changes in land use. In the semi-arid region of the
Chaco, Santa Fe, and Santiago del Estero provinces, Gran Chaco, the zones most affected by negative
is an extensive region of interconnected low and trends in soil productivity are generally related to the
waterlogged lands going through drought and flood rapid expansion of livestock farming. The replacement
periods but also with potential for development. In this of native ecosystems of high ecological value by
region the vertical movement of the underground annual crops produces an increase in the seasonality
flow is more important than the horizontal flow. In of the productivity of the vegetation, since the crops
2018, the Interjurisdictional Committee of the Bajos leave the soil bare for a prolonged period of the
Submeridionales was formed by the three provinces year (Volante et al. 2012). The region comprising the
and the national government. Recently, Chaco and provinces of Río Negro, Chubut, and part of Neuquén
Santa Fe provinces signed an interjurisdictional treaty showed a negative trend that coincides with ash
to carry out joint studies on preventing the effects of deposits from a volcanic eruption, generating a
frequent droughts and floods, and thus promoting the decrease in primary productivity in the months after
region’s productivity.46 the eruption (Gaitán, Bran, and Azcona 2015).

Argentina’s deforestation rate is higher than the LAC Salinization due to inadequate irrigation practices
average, worsening runoff, flood effects, and soil is a primary reason the already deteriorated soil in
erosion (Bouza et al. 2016). Argentina ranked ninth in arid and semiarid regions gets worse. Nationwide,
loss of forest cover on a global scale, with 12 percent 23.5 percent of all irrigated areas are affected by
loss between 2001 and 2014.47 This loss had hydrologic salinization (FAO and INTA 2015). Dry lands that are
consequences since forests stabilize water flows, irrigated exhibit the greatest effects. Salinization is
preserve water quality, regulate local climates, and caused by deficient or excessive irrigation, particularly
reduce soil loss. The native forest loss decreased after in soils with bad drainage, in addition to poor soil
the passage of the Forest Protection Act (law number management disturbing natural drainage. It reduces
crop yields and decreases or eliminates production.
 30 ARGENTINA: VALUING WATER

Map 2.5 Land Productivity Dynamics

Decreasing
Moderately decreasing
With stress sings
Stable
Improving

Source: SAyDS 2018a.

Salinization can accelerate if poor-quality irrigation uses erosion (IPCC 2014a). Urban development close to
water with high salt content. For instance, in San Juan dunes and cliff edges blurs the coastal landscape and, in
province, 56 percent of irrigated land is affected by the medium term, alters or accelerates coastal erosion.
salinization, and in Buenos Aires province, 40 percent51. This process has accelerated the retreat of beaches on
Nonirrigated dry land may also experience salinization the Buenos Aires coast and the retreat of cliffs on some
when annual crops replace native vegetation, Patagonian coasts, affecting tourism, a main economic
altering the natural water balance, decreasing activity in this region (SAyDS 2015). In Buenos Aires
evapotranspiration, and producing a rise in the water province, the development of coastal defenses and
table. Salt accumulation in groundwater depends on port infrastructure destabilized the sedimentation–
soil properties and weather conditions. suspension equilibrium of sand particles linked to
coastal drift, causing coastline erosion (SAyDS 2016).
Human activity and sea level rise accelerate coastal Accelerated coastal erosion increases the impacts of sea
erosion by altering natural coastal dynamics. The level rise caused by climate change, most affecting the
projected rise in sea level throughout the 21st century southern area from Samborombón Bay to Mar Chiquita,
generates adverse impacts on coastal systems and low- Bahia Blanca, and Viedma, among others (map 2.6)
lying areas such as submergence, flooding, and coastal (Climate Central 2019a). The latest projections show
 31

Map 2.6 Sea Level Rise and Coastal Flooding, 2100 Projections
a. RCP 4.5 emissions scenario b. RCP 8.5 emissions scenario

Source: Climate Central 2019b; Coastal Risk Screening Tool (Climate Central 2019a). http://sealevel.climatecentral.org.
Note: Underwater zones are marked in blue according to the 2100 forecasts for the RCP 4.5 and RCP 8.5 emission scenarios respectively.

that Argentina could lose up to 3,700 kilometers of demand (BOD—a proxy for overall water quality)
sandy coastline by 2099 (Vousdoukas et al. 2020). The annually.55
long-term economic impact could be major.
Industrial discharges add to the problem by
contributing other contaminants such as heavy metals
Water Quality and persistent organic pollutants (POPs). This is obvious
in the AMBA, where the main rivers present high
Argentina faces major challenges in reaching the SDG
pollution levels (Lujan, Reconquista, and Matanza
targets aiming to improve water quality (SDG 6.3) and
Riachuelo). The phenomenon also occurs in rivers in
protect water-related ecosystems (SDG 6.6).52
other major urban hubs. Cities that discharge into the
Many urban and peri-urban rivers are polluted by Paraná River benefit from the river’s high capacity
untreated domestic and industrial effluents. About to dilute effluents. However, the metropolitan area’s
1.7 billion cubic meters of domestic effluents are discharges near the river mouth still create major harm
discharged into the sewage network each year.53 to the La Plata River. During 2018, the quality of the
Only part is properly treated, while the rest goes water near the river’s mouth showed that it was not
directly into the environment. And about 1.1 billion suitable for recreational use.56 The parameters farthest
cubic meters a year of domestic effluents have no from the reference value were bacteriological, used
connection to the sewerage network.54 The organic as indicators of fecal contamination, whose registered
load discharged directly into the environment levels show the presence of sewage effluents without
represents 280,000 tons in biochemical oxygen adequate treatment.
 32 ARGENTINA: VALUING WATER

The country’s agriculture spreads pollution mainly marine and freshwater ecosystems. Phosphorous is
through agrochemicals, such as pesticides and the main nutrient that causes cyanobacteria spread,
fertilizers. Generally conveyed by runoff and infiltration, and a high nitrogen level can cause other microalgae
this pollution affects groundwater and surface water, blooms, widely recognized as indicating environmental
damaging aquatic ecosystems. Newer pesticides are stress. Microcystin, a liver toxin, is the most common
less hazardous than older ones to health and to the found in Argentine freshwater bodies (Aguilera et al.
environment, but their use is extensive and rising. Corn 2018). Cyanobacteria presence is pronounced during
has the highest pesticide impact (in the quantity and the warmer summer months—when the demand for
type of compound applied), followed by soy, the most recreational water increases. Using remote sensing
widely planted crop. This study, analyzing the impact of data to measure chlorophyll-a, it is possible to estimate
pesticide application on production at the department the concentration and distribution of cyanobacteria
level in the most productive areas, found in some (Germán et al. 2016).
areas that the impact of agrochemical use is high in
The use of remote-sensing data for Argentina shows
relation to the value of production.
eutrophication problems (Map 2.8).57 Half of the
Nitrogenous and phosphate fertilizers are the most assessed surface water bodies present different
commonly applied, and wheat and corn are the crops levels of eutrophication; higher incidence is observed
using the greatest amount of fertilizer. Estimates of in the Córdoba, Santa Fe, Buenos Aires, La Pampa,
nitrogen and phosphorous from diffuse sources in and Entre Ríos provinces. Eutrophication issues in
surface water bodies (with export coefficients based on these areas are not only due to the concentration
soil use by department) show a close correlation with of nutrient contributions from densely populated
the high crop production in Argentina’s north-central areas and predominance of agro-industrial activities
region (map 2.7). (Aguilera et al. 2018), but also the characteristics
of the very shallow plain lagoons and climatic
Environmental disturbances, including climate change
conditions.
and human activities such as nutrient enrichment and
hydrological modifications (reservoir construction), Aquifer pollution by nitrogen compounds—due to
harm the composition, structure, and dynamics of diffuse pollution and to a lack of sanitation service

Map 2.7 Pesticide Impact, by Area, Annual Nitrogen Exports, Annual Phosphorus Exports, and Main Crop
Production, 2016–17

Source: Production data from the Ministry of Agriculture, Livestock, and Fishing. Using data on main crops in the area (cotton, birdseed, rice, oats,
beer barley, forage barley, rye, rapeseed, sunflower, flax, peanut, millet, dry bean, soybean, sorghum, tea, wheat, candeal wheat, yerba mate,
corn) and administrative limits of National Geographic Institute 2018.
Note: From left: pesticide impact by area of application; annual nitrogen exports in kilograms per hectare; annual phosphorous exports in
kilograms per hectare; and main crop production in tons per square kilometer. For calculating pesticide impacts, production data, applied
chemicals, and hazard coefficients were used for corn, wheat, soybeans, and sorghum. For the nutrient export data, satellite images and remote
sensing tools were used to identify different land uses, then correlate them with respective export coefficients. See appendix D for more details
on the methodologies.
 33

Map 2.8 Chlorophyll Concentration in the particularly for babies—and in the formation of
Northeast and Central Regions potentially carcinogenic nitrosamines and nitrosamides
(WHO 2011b). Nitrogen compounds on surface
water bodies spread eutrophication and microalgae
proliferation.
Arsenic, boron, and fluoride are the main natural
contaminants in groundwater. Arsenic is the most
significant in importance due to impacts on health
(map 2.9). Argentina is one of the world’s top
12 countries for arsenic concentration in groundwater
(Bundschuh, Carrera, and Litter 2008). In LAC, the
problem affects at least 14 countries (Argentina,
Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador,
Chlorophyll (ug/l) El Salvador, Guatemala, Honduras, Mexico, Nicaragua,
<= 25 Peru and Uruguay), and the number of people
25–50 exposed is about 14 million (Bundschuh et al. 2012).
50–75
75–100
100–125
> 125 Map 2.9 Arsenic Concentration in Water, by
Department

Source: World Bank team, based on water quality map, 2016 data,
UNESCO 2018.

in peri-urban zones—is a major problem. Nitrates

are among the most frequently detected pollutants
in groundwater, most often reflecting anthropic
activities in urban and rural areas (Moschione
2011). Currently no open data are available to
evaluate their magnitude. In the greater Buenos
Aires region, the over-exploitation of the Puelche
Aquifer generated extensive depression cones that
accelerate vertical pollution and a gradual increase
in nitrate concentrations (Giannuzzi 2016). In urban
and peri-urban areas, leakages from obsolete sewage
systems, and septic tanks in areas without sanitation
services, constitute the main contribution of nitrates
to groundwater. In rural areas, the use of nitrogen
fertilizers and irrigation activities play a fundamental No data
role in transporting nitrates to groundwater (Moschione
50 ppb
2011). Nitrates, as a highly soluble anion with great
mobility and a high leaching capacity, can reach 51–100 ppb
groundwater sources. Excess and deficient rainfall also
101 ppb
influence nitrate runoff, infiltration, and concentration
in water (Heredia et al. 2000). Drinking water with
Source: Data from Secretariat of Environment and Sustainable
an excess of nitrates can result in the transformation
Development, Ministry of Health of the Nation (2006). The
of hemoglobin into methemoglobin, which inhibits concentration of arsenic is represented in micrograms per liter (μg/l)
the transport of oxygen in the blood—deadly, or parts per billion (ppb).
 34 ARGENTINA: VALUING WATER

Chronic exposure to arsenic has been associated where plastic is the most common detritus washed up
with a variety of health problems including various on shores.
types of cancer (skin, lung, bladder, kidney),58
In 2015, the total urban solid waste generated in
neurological and cardiovascular diseases, and perinatal
Argentina came to 16.5 million tons, with Buenos
conditions, among others. The severity and degree
Aires generating the most solid waste per capita
of the disease are highly dependent on several
(SAyDS 2017). Plastics accounted for 13–17 percent
factors, such as arsenic levels in drinking water, local
of it. Waste from highly urbanized areas reaches La
climate, duration of exposure, age, and body weight
Plata River through stream, river, and storm drain
(Bardach et al. 2015).
discharge, and travels to distant areas along the
It is estimated that one in ten people in Argentina is Argentine coast (Gonzalez Carnan, 2015). The ingestion
exposed to arsenic, and 2.6 percent of those suffer of microplastic threatens marine and freshwater fauna
from hydroarsenicism.59 In Argentina, the set of and their biodiversity (Eerkes-Medrano, Thompson, and
symptoms and signs associated with the consumption Aldridge 2015).
of water or food contaminated with arsenic has been
called endemic regional chronic hydro-arsenicism Notes
(HACRE). The area most affected by arsenic is the
1. Food Safety Data, available at: http://www.fao.org​
Chacopampean plain (Chaco, Córdoba, Tucumán, /­faostat/es/?#data/FS (consulted in March 2021).
Santiago del Estero, and Buenos Aires), covering
around 10 million square kilometers and one of the 2. These impacts have been extensively analyzed. See
most densely populated regions in the country. The appendix B for references.
Northwestern provinces of Salta and Jujuy, and the 3. River navigation conveys 84 percent of the volume of
region of Cuyo (Mendoza, San Juan, and San Luis) grains and byproducts exported, and 92 percent of the
also present arsenic in groundwater sources (RSA- containers moved (export and import). Source: Ministry
CONICET 2018). In many of these areas, groundwater of Agribusiness (Year 2017) and Secretariat of Ports,
is the main source of drinking water throughout the Waterways and Merchant Marine (2018).
year, mainly exposing rural and dispersed populations 4. World Bank team from Secretaría de Puertos, Vías
without safe surface sources to the contaminants. Navegables y Marina Mercante (2018).
The use of groundwater with arsenic for irrigation 5. Source: https://www.magyp.gob.ar/sitio/areas​
purposes in farm fields increases the risk of arsenic /ss_mercados_agropecuarios/infraestructura​
contamination (Rosas-Castor et al. 2014). /_archivos/000071_Hidrov%C3%ADa%20Paraguay​
-Paran%C3%A1%20(HPP).pdf (consulted in March 2021).
The 10 microgram per liter guideline value for arsenic
recommended by the World Health Organization 6. The estimate is based on hydropower representing
(WHO 2011a) and the United States Environmental 26 percent of total generation and electricity generation
and distribution contributing 2.2 percent of added
Protection Agency was incorporated into the Argentine
value (33 percent for generation and 66 percent for
food code (Código Alimentario Argentino, CAA) in transmission). Source: https://www.minem.gob​
2007. But the universal enforcement of this guideline .ar/servicios/archivos/6886/AS_14817236511.pdf
is yet to be established, after an epidemiological study (consulted in March 2021).
of the health impacts of consuming water with arsenic
7. Source: https://www.argentina.gob.ar/energia/energia​
by national institutions and after reaching consensus
-electrica/hidroelectrica/estadisticas-de-hidroelectricidad​
among all provinces (Litter et al. 2019). -en-argentina (consulted in March 2021).
Urbanization along Argentina’s ocean coastline 8. National Hydropower Works Program 2025, available
generally outpaces management and infrastructure at: http://cdi.mecon.gov.ar/bases/docelec/fc1303.pdf
development, creating pollution focal points. Coastal (consulted in March 2021).
pollution is caused by domestic and industrial
9. Energy is exported and imported, and during the period
effluents, deficient management of urban solid in question, imports exceeded exports.
waste, hydrocarbon spills from ports and maritime
transport, and nutrient problems in estuaries caused by 10. To this end, the following steps were taken: For each
agriculture and livestock. Due to heavy urbanization, of the partial impacts, the different components were
separated into those that modified the supply of
industrial settlement, and port activities, the
production factors and those that did not. The impacts on
concentration of nutrients in the Rio de la Plata estuary the supply and factors were separated into labor, capital,
has increased, changing the eutrophic status of the and land, per production sector. Additionally, changes in
system (Pizarro and Orlando 1985). The degradation of factor productivity were calculated. These changes were
marine resources through plastic pollution, one of the also used as inputs for the general equilibrium model
newest concerns around the world, affects Argentina, to determine the overall impact on GDP. The analysis
 35

was made on the basis of 2018 GDP. The drop in the 16. The selection of variables was conducted through Lasso,
level of activity that began that year and, in particular, using historical data for 20 crops (surface area sown,
the consequences of COVID-19 on it and its composition yield, production) from 1979 to date. The methodology is
may imply changes in the percentages detailed here. explained in appendix B.
However, in the case of an analysis of long-term
17. This was calculated through fixed-effects panel
impacts, changes in the structure of GDP do not appear
regressions between hydrologic variables related to
to significantly alter these estimates. These shocks, first
water availability for rainfed agriculture and production.
calculated using different partial equilibrium models,
were expressed in terms of equivalent annual values as 18. This shock is equivalent to a drop of −7.65 percent in the
a fraction of GDP. However, these partial impacts cannot productivity of all factors in the agricultural sector.
be added directly but must first be transformed into
shocks of production factors to be introduced into the 19. This is evaluated in chapter 6, as the benefits of investing
general equilibrium—for which the GTAP-BIO W model in increasing the efficiency of irrigation schemes by 2030.
prepared by the Global Trade Analysis Project was used— 20. According to results from the World Bank’s applied
thus allowing an estimate of the overall impact on the structural macroeconometric model and the Faculty
Argentine economy. of Engineering of the Universidad Nacional de La
Plata (UNLP)’s Cointegration Vector Model. Details in
11. This figure does not consider the cost of investments.
appendix B.
These are considered in cost-benefit analyses conducted
in chapter 6. 21. See appendix B, section 10.
12. Different matching techniques were used to 22. Values in parity purchasing power, constant 2011
determine the impact on the value of homes. The international dollars. In the conservative scenarios
impacts determined in each of the alternatives were developed, the average shocks cause expected losses of
15.1 percent, 15.2 percent, 15.3 percent, 19.6 percent, 0.05 percent of the total value of residential assets, that
and 20.4 percent (see appendix B, chapter 1, table 1). is, a negative shock to the total capital of the economy of
The extreme values are those that define the baseline that percentage compared with the baseline scenario.
scenario (0.83 percent of GDP).
23. Deaths produced by floods indirectly, in the medium
13. Complementing the analyses developed to assess the and long term, are caused by health impacts in the
economic impact in Argentina of universalizing drinking affected population. Direct deaths were not monetized
water and sanitation services, a salary equation (from in this analysis (see appendix B—Section 9). During the
Mincer) with correction of selection bias (à la Heckman) current century (2000/2017), as a direct consequence
was estimated. Using data from the Permanent of the floods, an annual average of 1.8 per 10 million
Household Survey of 2018, it is observed that the results inhabitants died in Argentina due to floods. It is one of
obtained for the estimated semi-elasticity confirm the three countries in South America with the lowest
that having potable water and sanitation increases the incidence of deaths by floods (in South America, 8.8
income of affected people by more than 7 percent of every 10 million inhabitants die, and in LAC, 10.5).
(other things equal). Considering the proportion of The number of deaths by floods in Argentina includes
income of the population that could potentially access those that occurred in the extraordinary flood in the
the services mentioned in the universalization scenario, city of La Plata in 2013, which represented 36 percent
the result indicates that such a policy could increase of the deaths in the period. These figures are based on
labor income by up to 2.15 percent. If we assume that population data from the World Bank World Development
the salaries received by individuals correlate perfectly Indicators (for the year 2018) and deaths due to floods
with their marginal labor productivity, the impact of the for the period 2000/2017 from ECLAC—CEPALSTAT​
universalization of the drinking water and sewer service —­Environmental Statistics and Indicators.
on the marginal labor productivity of all productive 24. For this study, Fathom flood hazard maps at a 90-meter
sectors is an increase of 2.15 percent over the baseline resolution for Argentina were combined with an exposure
scenario. Alternatively, a negative impact on labor layer and vulnerability functions to derive asset losses. To
productivity of work of −2.1 percent can be considered calculate asset losses, the model considers the intensity
with respect to the optimal scenario. This figure is of the threat (floods for different return periods), the
considered for the computable general equilibrium degree of exposure (GDP divided by per capita assets),
model. and vulnerability (damage functions that compare the
14. The inadequate quality of service causes a 0.224 percent intensity of the flood with the losses). See appendix B,
drop in aggregate sales of the sector. Total factor chapter 9, “unbreakable model as a diagnostic tool to
productivity is estimated to experience a similar impact estimate flood risk.”
in the productive sectors, excluding the primary sectors 25. Valuing real estate capital by its ability to generate future
(agriculture and mining). This shock is used in the rental flows, reduced housing values reflect a lower
computable general equilibrium simulation. productivity of real estate capital, since they imply a
15. The drops are calculated from the possible value of lower future rent collection. The poor quality of Río de
production each year with optimal water supply and la Plata water prevents swimming and recreation on its
other variables held constant. shores, implying higher recreation costs equivalent to
 36 ARGENTINA: VALUING WATER

a 0.02 percent drop in the supply of productive factors in “project to support flood risk management for the City
industry. of Buenos Aires” is available on request. The work
26. Currently the conditions of the Río de la Plata prevent its was carried out among the resident populations of
recreational use along much of the coast; the population vulnerable neighborhoods of the basins of the Vega
and Cildañez rivers that are historically flood-prone.
uses alternative destinations that provide similar
The interception survey used a representative sample
satisfaction, although at higher costs. To estimate the
of 1,000 cases, segmented by age, gender, and
impact of re-arranging the coasts of the Río de la Plata
socioeconomic status.
for recreational use, the cost differential of the current
destinations with respect to the Río de la Plata coast was 36. From the same study. International experience is similar.
estimated for three scenarios depending on whether
or not it is included in the current replacement. These 37. The study also mentions that in the low-income
include: (a) null replacement, in which the population communes of CABA that are part of the Cildañez basin,
only replaces round-trip trips in the day, without 7 of 10 women over 25 have not completed secondary
overnight stays in alternative destinations; (b) partial studies, and that women’s income in the city increases
replacement, in which 50 percent of the overnight stays by 33.2 percent when secondary education is reached
in alternative destinations are replaced; and (c) full (General Directorate of Statistics and Censuses 2017).
replacement, in which all alternative travel overnight
38. This refers to global data collected through the World
stays are replaced. The impact indicated here corresponds
Bank Utility Survey (World Bank 2019c).
to scenario (a), the most conservative.
27. The Human Capital Index is a measure of a country’s 39. Under a new World Bank operation, AySA aims to
development potential. It combines five measures increase the percentage of women in managerial
of human capital into a single index to quantify the positions, from 22 to 28 percent, making it closer to
contribution of health and education to the productivity the regional average of 35 percent. Source: World Bank
of the next generation. The five measures are Water Data, available in: https://wbwaterdata.org​
the percentage of stunting of children under age 5, /breakingbarriers/tool/ (consulted in December 2020).
percentage of children surviving past age 5, expected Based on data from nine water utilities in LAC, collected
years of schooling by age 18, harmonized test scores, through the World Bank’s HR Utility Survey including data
and percentage of 15-year-olds who survive until age 60. submitted by AySA.
Available at: https://datacatalog.worldbank.org/dataset​ 40. United States: Florida v. Georgia, No. 142, Orig., Slip op.
/­human-capital-index (consulted in March 2021). (S.Ct. filed June 27, 2018); Australia: New South Wales
28. Prepared by the authors for each department of the Water Management Act, 2000; New Zealand: Te awa
country as of the first quarter of 2018 based on National Tupua Act, 2014, 3 Section 16, Te Awa Tupua (Whanganui
Institute of Statistics and Census data: 2010 Census, River Claims Settlement) Public Act 2017, No. 7 (Date
Permanent Household Survey (EPH 2014/18) and Annual of assent: March 20, 2017); Indus Waters Kishenganga
Survey of Urban Households (EAHU 2010/14). Arbitration (Pak. V. India) (Partial Award of Feb. 18, 2013)
29. Twenty countries fall within this segment of GDP per 41. La Pampa. CSJ 243/2014 (50-L)/CS1 “La Pampa, Province
capita. Data are available on disability-adjusted life years of Mendoza, Province of water use” (7/16/2020).
for only 14 of them. In all cases, the values are for 2016,
expressed in 2011 prices. 42. MAyDS, “Environmental Policy in Natural Resources, Salí
Dulce River.” Available at: https://www.argentina.gob​
30. One DALY represents the loss of the equivalent of one .ar/ambiente/agua/cuencas/salidulce (consulted in
year of full health. DALYs for a disease or health condition March 2021).
in a population are the sum of the years of life lost to
due to premature mortality and the years lived with a 43. SIPH, “River Basin Committee Salí Dulce.” Available at:
disability due to prevalent cases of the disease or health https://www.argentina.gob.ar/obras-publicas/hidricas​
condition. /­comite-de-cuenca-del-rio-sali-dulce (consulted in March
2021).
31. World Health Organization, Global Health Observatory
data repository, data 2016. 44. A study on global estimates of the value of ecosystems
and their services calculates a mean contribution of
32. Estimates based on average poverty for the first and
US$4,267/hectare/year for lakes and rivers; US$ 28,917​
second half of 2018 (Permanent Household Survey and
/hectare/year for coastal systems; and US$25,682​
National Institute of Statistics and Census).
/hectare/year for inland wetlands (De Groot et al. 2012).
33. https://www.youtube.com/watch?v=uwqK5v37​GjY&t=68s
45. MAyDS, “Ramsar Sites Network.” Available at: https://
34. See appendix B, chapter 9, for more details on the www.argentina.gob.ar/ambiente/agua/humedales​
methodologies used. /­sitiosramsar (consulted in March 2021).

35. In this social baseline study carried out by the World 46. SIPH, “Committee of the Submeridional Lowlands Water
Bank and CABA, gender-disaggregated data made it Region.” Available at: https://www.argentina.gob.ar​
possible to study the differentiated impacts of flooding /­obras-publicas/hidricas/7-comite-de-la-region-hidrica​
in two basins of the city. An unpublished work on the -bajos-submeridionales (consulted in March 2021).
 37

47. World Bank 2016, based on Global Forest Watch (2016). BOD for domestic effluents (see figure 4.5 in chapter 4).
Available at: https://www.globalforestwatch.org/ A recent report (World Bank 2019a) estimates the
(consulted in March 2021). impact of upstream BOD on downstream local GDP:
“When the BOD level exceeds 8 mg/l (a level at which
48. Chaco MapBiomas Project: Annual Series of Chaco
rivers are considered heavily polluted), GDP growth falls
Land Use and Coverage Maps. Available at: http://
significantly, by 0.82 percentage points, in downstream
mapbiomas​-chaco-site-stg.herokuapp.com/
regions. When the sample is restricted to only middle-
(consulted in March 2021).
income countries, where BOD is a bigger problem, the
49. According to the National Observatory of Land impact increases to 1.16 percentage points, implying that
Degradation and Desertification, 55 percent of the almost half of growth is lost. Also, losses in GDP growth
country’s area is subject to desertification. Some are 25 percent higher downstream from heavily polluted
60 percent in the humid/subhumid areas with high rivers (BOD > 8 mg/l) than from moderately polluted
vegetation cover has low wind and water erosion rates, rivers (BOD between 2 and 8 mg/l).”
while about 12 percent, concentrated in arid/semiarid
56. The Local Government Information Exchange Network
areas with steep slopes and low vegetation cover such
(RIIGLO) was formed with the objective of providing
as Cuyo, the Northwest region, and Patagonia, has high
information to decision-makers for coastal environmental
erosion rates (Gaitán, et al. 2017).
management and control of activities that impact the
50. Interpreted and estimated from the behavior of the Río de la Plata. The RIIGLO is made up of the MAyDS, the
Normalized Difference Vegetation Index (NDVI) for the CABA, and the Buenos Aires municipalities of Tigre, San
period between 2000 and 2015, corresponding to that Fernando, San Isidro, Vicente López, Avellaneda, Quilmes,
requested by the United Nations Convention to Combat Berazategui, Ensenada, and Berisso. Representative
Desertification (UNCCD) as a baseline for the 2018 water quality samples of the four climatic seasons
national report. of the year are carried out along approximately 100
kilometers in the coastal strip at 41 sites. The parameters
51. According to the INTA study, included in the FAO- that were analyzed were bacteriological, nutrients
PROSAP study, approximately 421,000 hectares are (nitrates, ammonium, phosphates, and total phosphorus),
affected in the country, which represents 23.5% of organic load (chemical and biological oxygen
the total irrigated area. The breakdown of the most demands), chlorophyll-a as an indicator of trophic level,
affected areas by region is as follows: the NOA has hydrocarbons derived from petroleum, total chromium
approximately 55,000 affected hectares (11% of the and cadmium total, microcystin, and turbidity, among
irrigated area); Whose, 142,000 hectares (28.3% of others. Source: SAyDS 2018a.
the irrigated area); Patagonia, 45,000 hectares (36%
of the irrigated area); while the Pampean region and 57. Data obtained from spatial analysis on UNESCO water
NEA present approximately 170,500 hectares affected quality maps (2016) obtained from remote sensing,
(27% of the area). available at: www.sdg6.worldwaterquality.org. It should
be considered as a specific analysis for the period
52. Indicator 6.3.2 proposes to determine the general 2016–18. For the characterization of the trophic state
quality of surface water based on dissolved oxygen, of a water body, the Carlson index was used, which
electrical conductivity, nitrogen, phosphorus, and uses a logarithmic transformation as a function of the
pH; and the general quality of groundwater based concentration of chlorophyll in microgram per liter
on electrical conductivity, nitrates, and pH. These (μg/l) and a value of trophic state index is assigned. The
indicators show water quality by comparison with remote sensing data is an estimate only. It has not been
their benchmarks, which must be set for each validated with ground data. See appendix D for more
medium or region. An analysis of the available details on the methodology.
information on these parameters has been carried
out, in coordination with the COHIFE Water Quality 58. The International Agency for Research on Cancer included
Commission. The results show important variations arsenic in group I, that is, with sufficient evidence of
by zones and seasons, often linked to productive carcinogenicity in humans (IARC 2018).
practices (see appendix D).
59. Fifth International Congress on Arsenic in the
53. Calculation based on 52.8 percent of the total people Environment, “A Century of the Discovery of HACRE in
of the country with sewerage coverage (projections America (1914-2014), As 2014,” Buenos Aires, Argentina,
from National Institute of Statistics and Census 2010, May 11–16, 2014.
EPH 2014/2018, and EAHU 2010/2014), which dump
80 percent of their drinking water consumption
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P A RT 2

Water Sector Diagnostics

C HAPT E R 3

Natural Water Capital and

Water Demand in Argentina

Water Distribution In addition, an undetermined amount of groundwater

is generated outside the country, mainly in the Guaraní
The most important characteristic of the country’s Aquifer System (SAG) and the Yrendá-Toba-Tarijeño
natural water capital is the large volume flowing from Aquifer System (SAYTT). SAG is the third-largest
outside the country from the Paraná, Paraguay, and groundwater reserve in the world, shared among
Uruguay rivers: more than 700 cubic kilometers a year Argentina, Brazil, Paraguay, and Uruguay, with an
in external surface resources (map 3.1). In contrast, the extension of over 1.2 million square kilometers, a
net volume generated inside Argentina is about 140 volume of 45,000 cubic kilometers, and an average
cubic kilometers a year.1 This means Argentina has one renewal rate of 225 cubic kilometers a year, surpassing
of the highest dependencies on external resources in its average demand and guaranteeing its long-term
the world.2 stability (Richey et al. 2015). In Argentina, it extends
over about 225.000 square kilometers (8 percent of
A substantial share of the external resources goes
the territory),3 and water extraction is conditioned
into the La Plata River, along with internal surplus
by its depth (Sindico, Hirata, and Manganelli 2018).
in the La Plata Basin. The river discharges 850 cubic
SAYTT is another groundwater resource shared by
kilometers a year, or 27,000 cubic meters a second
Argentina, the Plurinational State of Bolivia, and
on average (CIC Cuenca del Plata 2016), but this
Paraguay, and constitutes another of the most
can be as low as 15,000 cubic meters a second or
important transboundary fresh and underground water
as high as 50,000 cubic meters a second during
reservoirs in the Gran Chaco region. Its groundwater
extreme events (Camillon and Barros 2000). This
potential is so far little known; extensive research and
far exceeds the external contribution, showing that
analysis of its recharge volumes and its storage and
the basin has surplus water. In the south, there
exploitation capacities remain necessary (CIC Cuenca
are river basins with shared water resources with
del Plata 2016).
Chile that discharge in the Pacific Ocean, which
implies exporting about 14 cubic kilometers a year The use of groundwater in Argentina in some areas
(Bianchi and Cravero 2010). is limited due to inadequate quality (manmade or
 46 ARGENTINA: VALUING WATER

Map 3.1 Transboundary Water Resources (Surface Water and Groundwater)

Peru Peru
Boliva Boliva
700 km3/year
Brazil Brazil

Paraguay
Paraguay

Uruguay Uruguay
Chile Argentina 850 km /year
3
Argentina
Chile
140 km3/year

14 km3/year

La Plata Basin
Guarani Aquifer System
Yrenda-Toba-Tarijeño
Basins shared with Chile
Aquifer System

Source: Left: Adapted from UNEP-DHI and UNEP 2016; Right: IGRAC and UNESCO-IHP 2015.
Note: Left: Simplified surface water balance on CIC Cuenca del Plata (2016) and Bianchi and Cravero (2010). The annual volume generated inside
the country of 140 cubic kilometers a year correspond to the net balance between precipitation and evapotranspiration. Right: the Guarani Aquifer
System and the Yrendá-Toba-Tarijeño Aquifer System.

natural pollution), and the aquifers already being than 800 millimeters a year of precipitation occupy
tapped are often vulnerable to overexploitation. about 70 percent of the country, while the humid
For instance, the Puelche formation, the most region receiving more than 800 millimeters a year
important sandy freshwater aquifer in the provinces occupies 30 percent.
of Buenos Aires and Santa Fe, is one of the most
Most of the basins in the country discharge into the
tapped in the country. Qualitative knowledge about
Atlantic, some are endorheic, and a few small ones
Argentina’s hydrogeology is available,4 but data on
discharge into the Pacific (map 3.3). Most of the basins
groundwater availability and dynamics are scare and
are interjurisdictional.
unevenly distributed (Vives et al. 2020). The fact
that the main aquifer systems are transboundary is
an added challenge, especially when it comes to Water Balance by Macrobasin
pollution or overexploitation, usually perceived within
The water balance assessments in this study confirm
specific areas of the aquifer (Sindico, Hirata, and
diverse water availability. A standard balance
Manganelli 2018).
modeling exercise in Argentina by macrobasin
Rainfall distribution in the Argentinian territory is disaggregates information into a 5-kilometer pixel
diverse, with high aridity in extensive territories, raster resolution for more detailed subsequent
and minor trends of changes in annual averages analyses in specific areas5 (maps 3.4, 3.5; appendix A).
observed in the past 50 years. Average rainfall is On average, per capita water availability in
1,600 millimeters, reaching 2,000 millimeters in the Argentina is 19,500 cubic meters a year. Comparing
northeast and on some Andean peaks. But a vertical macrobasins, the amounts per capita are greater than
strip from northwest to south shows substantial aridity, the average except in the La Plata River–Buenos Aires
with averages below 200 millimeters in some areas system, which has 11,500 cubic meters a year, due to
(map 3.2). Arid and semi-arid regions that receive less the large population.
 47

Map 3.2 Annual Rainfall and Direct Water Balance in Argentina

Precipitation (mm)
200
200–300
300–400
400–500 Direct water balance
500–600 (mm/year)
600–700 –650 0–50
700–800 –650 – –600 50–100
800–900 –600 – –550 100–150
900–1,000 –550 – –500 150–200
1,000–1,100 –500 – –450 200–250
1,100–1,200 –450 – –400 250–300
1,200–1,300 –400 – –350 300–350
1,300–1,400 –350 – –300 350–400
1,400–1,500 –300 – –250 400–450
1,500–1,600 –250 – –200 450–500
1,700–1,800 –200 – –150 500–550
1,800–1,900 –150 – –100 550–600
1,900–2,000 –100 – –50 600–650
>2,000 –50 – –0 >650

Source: Based on data from Bianchi and Cravero (2010).

Note: Left: annual rainfall. Right: direct water balance (precipitation minus evapotranspiration).

Map 3.3 Surface Water Basins of Argentina and Provincial Limits

Pacific basins

Atlantic basins

La Plata Basin

Endorreic basins

Source: Based on the Atlas of Watersheds and Surface Water Regions of the Argentine Republic, 2010, and national and provincial limits of the
National Geographic Institute, 2018.
 48 ARGENTINA: VALUING WATER

Map 3.4 Macrobasins Used to Measure Water Balances

Parana-Paraguay-Uruguay System

Independent System

Mar Chiquita System

Serrano System

Colorado River System La Plata river

and
Buenos Aires
System
Limay-Neuquen-Negro
System
Pampean System

Patagonic rivers System

Pacific System

Source: Based on the Atlas of Watersheds and Surface Water Regions of the Argentine Republic, 2010, and national and provincial limits of the
National Geographic Institute, 2018.

Map 3.5 Rainfall Volume and Surface Water Balance, by Macrobasin

23,6 km³ 18%
786,1 km³
km 8%
4,3 km³ 63,5 km³
105,7 km³
km³

70,8 km³
3%
3,2 km³

109,6 km³ 0 km³

206,0

1%
1,0 km³ 9%
19,2 km³
58,8 km³

5%
km
118,7 km³ 5,4 km³
152,1 km³

29,6 km³ 16,0 km³ <1%

27% 0,6 km³

Water
Present (1950–2010) supply (km3)
Average Annual <100
Precipitation (mm) 44% 8%
13,1 km³ 12,8 km³
200–300 <200
Average 300–400
Mensual 400–500 <300
Precipitation (mm) 500–600
600–700
<50 mm 700–800
<100 mm 800–900 <800
<150 mm 900–1,000

Source: Based on the Water Balance Model data (appendix A).

Note: Left: average annual rainfall volumes by macrobasin with annual and monthly distributions. The size of the circle represents water supply
in cubic kilometers. Right: surface water balance by macrobasin. The volume of rain is represented by the circle’s area. Evaporative demand is
represented by the light sector, and surplus for runoff or infiltration by the dark sector. The bar graph shows the monthly surface supply variation.
Months with a negative excess represent a net deficit, which can be offset by months of excess, if there is underground or surface storage
capacity. The series analyzed covers the period 1950–2010, and the results of the averages are presented, both in monthly and annual terms.
 49

Future Water Supply Scenarios the north and 1 degree in the rest of the
country, with hardly any change in rainfall
under Climate Change (map 3.6b and f).
This study considers scenarios for moderate and • Far future (2099) with RCP 8.5 (extreme
extreme emissions. The scenarios are consistent emissions): the rise in temperature varies up to
with the third national communication on climate 4 degrees in some areas, while rainfall increases
change (2039 and 2099) (SAyDS 2015), whose up to 20 percent in some areas in the north and
projections were used to estimate the future water declines up to 20 percent in some areas in the
supply as follows: south (map 3.6d and h).

• Near future (2039) with RCP 4.5 (moderate Water availability declines across all basins, in
emissions)6: temperatures rise 1 degree throughout both the near future and far future scenario. The
the country, and rainfall does not change
change comes from increased temperatures and
significantly (map 3.6a and e).
evapotranspiration with not large variations in rainfall
• Near future (2039) with RCP 8.5 (extreme in the near future, where the decline is substantially
emissions): not significantly different from the similar under both emissions levels (map 3.7). But
previous scenario (map 3.6c and g). in the far future, availability clearly declines more in
• Far future (2099) with RCP 4.5 (moderate the scenario with extreme emissions. Temperature
emissions): temperatures rise 2 degrees in increases will be more marked in the north of the

Map 3.6 Temperature Increases, Emissions, and Annual Rainfall

21S 21S 21S 21S

24S 24S 24S 24S 7.0

27S 27S 27S 27S 6.0

30S 30S 30S 30S 5.0

33S 33S 33S 33S 4.0

36S 36S 36S 36S 3.5

39S 39S 39S 39S 3.0

42S
A 42S
B 42S
C 42S
D 2.5

45S 45S 45S 45S

2.0

48S
1.5
48S 48S 48S
1.0
51S 51S 51S 51S
0.5
54S 54S 54S 54S
0
75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W
21S 21S 21S 21S

24S 24S 24S 24S 50

27S 27S 27S 27S 40

30S 30S 30S 30S 30

33S 33S 33S 33S 20

36S 36S 36S 36S 10

39S 39S 39S 39S 0

42S E 42S F 42S G 42S H –10

45S 45S 45S 45S

–20

48S 48S 48S 48S

–30

–40
51S 51S 51S 51S
–50
54S 54S 54S 54S

75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W 75W 72W 69W 66W 63W 60W 57W 54W

Source: SAyDS 2015.

Note: Temperature increases (a–d); variations in annual precipitation (e–h). From left: near future until 2039 and moderate emissions RCP4.5 (a
and e), far future 2075–99 and moderate emissions at RCP4.5 (b and f), near future until 2039 and high emissions at RCP8.5 (c and g), and far
future 2075–99 and high emissions at RCP8.5 (d and h).
 50 ARGENTINA: VALUING WATER

Map 3.7 Surplus Water, by Macrobasin, under Three Climate Change Scenarios
Near future (2039) Far future (2099) and RCP 4.5 Far future (2099) and RCP 8.5

Surplus Surplus Change to Monthly Surplus Surplus Change to Monthly Surplus Surplus Change to Monthly
System the current distribution of the current distribution of the current distribution of
proportion volume scenario surplus proportion volume scenario surplus proportion volume scenario surplus

Patagonian Rivers 8% 11.6 km³ 9% 8% 11.6 km³ 9% 7% 10.5 km³ 18%

Colorado River 4% 4.8 km³ 10% 4% 4.6 km³ 15% 4% 4.0 km³ 27%

Independent
17% 3.9 km³ 8% 15% 3.6 km³ 16% 13% 3.1 km³ 28%
System

Mar Chiquita 3% 2.9 km³ 10% 3% 2.7 km³ 15% 2% 2.3 km³ 29%

Serrano 1% 0.9 km³ 4% 1% 0.9 km³ 6% 1% 0.9 km³ 11%

Pampean <1% 0.2 km³ 63% <1% 0.2 km³ 63% <1% 0.1 km³ 76%

Rio de la Plata and 6% 6% 11.3 km³ 1%

11.3 km³ 41% 41% 2.9 km³ 85%
Buenos Aires

Limay Negro
26% 15.1 km³ 6% 25% 15.0 km³ 6% 23% 13.7 km³ 14%
Neuquén

Parana Paraguay 6% 5% 3%
46.7 km³ 26% 41.1 km³ 35% 23.3 km³ 63%
Uruguay

Pacific System 42% 12.3 km³ 6% 42% 12.3 km³ 6% 38% 11.5 km³ 12%

Source: Based on the Water Balance Model data (appendix A).

Note: The percentages are the scenario’s change in surplus from current surplus. The area of the circle represents the current volume of
precipitation, with the light sector showing evaporative demand (including irrigation evaporative demand), and the dark sector showing surplus
for runoff or infiltration. The percentages of change refer to the loss of excess water compared to the current situation. This loss is important, since
the excess is what allows runoff and recharge of the subsoil. The bar graphs represent the monthly variation of the excesses (positive values
above the axis) and deficits (negative values below the axis).

country, while slight reductions in precipitation are where rivers depend entirely on snowmelt. The flow
projected in the southwest of the country. The water could decrease significantly during seasons when
available for drinking water, industry, irrigation, river water is vital, and the impact will be higher
navigation on rivers, and maintaining aquifers and in the Mendoza and San Juan province agricultural
ecosystems will be affected, especially in the far productive areas. No study yet links glacier retreat
future scenario. to alterations in water balances or seasonal water
distribution.
Snow and Glaciers
Glaciers have regulatory functions, acting as strategic
Climate Variability and
water reserves in many hydrological systems. Extreme Events
Argentina has 8,484 square kilometers covered in ice,
Climate Variability
placing it among the 15 countries with the largest
glacial surface in the world. Glaciers in Argentina are Temperatures rose more or less uniformly over 1961–
located in the west of the country; they are distributed 2018, with some areas of thermal stability such as Córdoba
along approximately 4,000 kilometers in the Andes and Santiago del Estero, according to National Meteorology
Mountains and are present in 12 provinces and Service data (map 3.8). Precipitation increased in the
36 watersheds (SAyDS 2019). Northeast Argentina and Pampean regions and fell slightly
in the Northwest and Patagonia regions.
Climate change seriously threatens glaciers and
snow masses’ important regulation of water in the Climate model projections generally indicate that
central Andes. Forty-eight of the 50 main glaciers in extremes of high temperatures and extreme
the Southern Patagonian ice field shrank during the precipitation will continue to increase in most parts
20th century’s last five decades (SAyDS 2015). The of the country, although the precise quantification of
rapid loss of glacier mass represents a new risk for this change presents considerable levels of uncertainty
areas from San Juan province to Chubut province, (SAyDS 2015).
 51

Map 3.8 Temperature and Rainfall Changes, 1961–2018

25°S 25°S

300
2.0 200
30°S 30°S
150
1.5
100
1.0 50
35°S 35°S
25
0.5 10
–10
–0.5
40°S 40°S –25
–1.0 –50
–100
–1.5
45°S 45°S –150
Average temperature Observed precipitation
–200
trend (°C/58 years) –2.0 trend (mm/58 years)
–300
Annual (1961–2020) Annual (1961–2018)
50°S 50°S

55°S 55°S
75°O 70°O 65°O 60°O 55°O 75°O 70°O 65°O 60°O 55°O

Source: National Meteorological Service.

Note: Left: temperature changes in degrees Celsius; right: annual rainfall changes in millimeters.

Figure 3.1 Paraguay River Flow in Puerto Pilcomayo, 1910–2017, with 10-Year Moving Average
14,000
Caudal medio mensual [m3/seg]

12,000
10,000
8,000
6,000
4,000
2,000
0
0

3
0

2
19

19

19

19

19

19

19

19

20

20

Source: Integrated Hydrological Database.

Note: Flow rates of the Paraguay river in cubic meters a second. Note the plateau in 1970–2005.

Longstanding multiannual cycles add complexity to a plateau in the Paraguay River’s flow in 1970–2005
climate change effects. Current studies suggest that (figure 3.1).
Argentina has approximately 10-year cycles that made
the 20th century’s first half drier than average, until The wet cycle plateau in the La Plata Basin does not
about 1970, when a wet cycle began that ended appear in other areas, which show more stability over
around 2005 (Lovino et al. 2018). This type of cycle, 1960–2017.7 Figure 3.2 shows rainfall at representative
analyzed primarily for the La Plata Basin, clearly shows stations in areas illustrating these trends.
 52 ARGENTINA: VALUING WATER

Figure 3.2 Annual Rainfall at Seven Stations Distributed throughout Argentina, and 10-Year Moving
Averages, 1960–2017
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1960 1970 1980 1990 2000 2010 2020
Salta Corrientes Mendoza Buenos Aires Tucumán Neuquen Iguazú
10-year mov. avg. (Salta) 10-year mov. avg. (Corrientes) 10-year mov. avg. (Mendoza)
10-year mov. avg. (Buenos Aires) 10-year mov. avg. (Tucumán) 10-year mov. avg. (Neuquen)
10-year mov. avg. (Iguazú)

Source: National Meteorological Service data.

Note: North: Salta and Tucuman; East: Buenos Aires, Iguazú, and Corrientes (La Plata Basin); West: Mendoza; South: Neuquen.

El Niño Southern Oscillation Effects northeast provinces, reported flood damage intensified
in 2010, but the reason could be a greater exposure
The South Pacific’s warming (and cooling) produces to risk, rather an increased virulence of climate
the El Niño Southern Oscillation (ENSO) and La Niña phenomena.
effects. The effects vary across Argentina as they
combine with other climate anomalies. In general, The number of rains of more than 100 millimeters
in years of El Niño intensity, the northeastern area has been stable. But in some regions, seasonal trends
records rainfall above normal, though not in all appear, with increases slightly higher in the country’s
months, while the northwest records less rainfall and north and east in the summer (figure 3.4).
high temperatures.8 The effect is relatively neutral in Some extremes requiring specific study will be
the central area, while Patagonia shows temperatures difficult to detect or analyze using only data from
below normal. In El Niño years, in the northern part of the National Meteorological Service network. For
the country’s most productive areas (Córdoba, Entre example, in Comodoro Rivadavia, an anomalous
Ríos, and Santa Fe provinces), summer crops, such as extreme phenomenon detected on March 30, 2017,
corn, benefit from more rainfall, while winter crops would have gone unnoticed if it had occurred in an
may be damaged. In the south or southwest of the area without monitoring stations. The 232-millimeter
most productive areas (Buenos Aires and La Pampa rainfall in 24 hours registered at the Comodoro
provinces), during La Niña years, rain is scarce in July– Rivadavia Airport National Meteorological Service
August, disturbing the planting season. The core area station departs completely from the historical scale
for producing cereals, soybeans, and sunflowers is (Paredes et al. 2017). The dramatic event in La Plata
very sensitive to these variations. in 2013, with a 181-millimeter rainfall recorded by an
Increased rainfall associated with El Niño is linked official rain gauge and 392 millimeters recorded in a
to more floods. Riverside floods occur mostly in the reliable station in La Plata city, also points to values
country’s coastal areas, where El Niño effects are above historical records and recognized trends and
stronger (ECLAC 2018). The most affected provinces are extrapolations (Bianchi 2015; Karol and San Juan 2018).
Chaco, Formosa, Santa Fe, Corrientes, Entre Ríos, and
Misiones. The years 1982–83, 1992–93, 1997–98, and Sea Level Rise
2015–16 had the highest incidence of floods.
Sea level rise is the largest anthropic change affecting
Argentina’s coastline. Average sea level is ascending,
Extreme Rainfall
and it increases the risk of floods, erosion, and saline
Maximum 24-hour rainfall shows no clear nationwide intrusion. The coast of the estuary of the La Plata River,
trend, although specific areas have upward seasonal which has a tidal dynamic, shows an upward trend
trends (figure 3.3). Perceptions of increased extreme in the mean level at the Buenos Aires mareograph
phenomena are inconclusive, except in Salta province, (figure 3.5).9 This upward trend aggravates the effects
where maximum 24-hour rainfall has clearly been of the storm surges in the coastal areas, including
above average in the past five years. For other Greater Buenos Aires (Barros et al. 2005, 2014).
 53

Figure 3.3 Maximum 24-Hour Rainfall, 1935–2017

100
90
80
70
Millimeters

60
50
40
30
20
10
0
19 5
19 7
19 9
19 1
19 3
19 5
19 7
19 9
19 1
19 3
19 5
19 7
19 9
19 1
19 3
19 5
19 7
19 9
19 1
19 3
19 5
19 7
19 9
19 1
19 3
19 5
19 7
19 9
19 1
19 3
19 5
19 7
20 9
20 1
20 3
20 5
20 7
20 9
20 1
20 3
20 5
17
3
3
3
4
4
4
4
4
5
5
5
5
5
6
6
6
6
6
7
7
7
7
7
8
8
8
8
8
9
9
9
9
9
0
0
0
0
0
1
1
1
19

Time
87046-jujuy 87047-Salta 87418-Mendoza 87436-San Luis

Source: National Meteorological Service data.

Note: Maximum 24-hour rainfall in millimeters. The stations are as indicated in SAyDS (2015). Each point is the moving average of the 10
previous years.

Figure 3.4 Number of Rains Heavier than the 90th Percentile, 1968–2017
120

100

80
Millimeters

60

40

20

0
70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

12

14

16
68
19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

20

20

20

20

20

20
19

Time
East region (Buenos Aires-La Plata) - Summer North region - Summer

Source: National Meteorological Service data.

Figure 3.5 Average Annual Sea Level at the Buenos Aires Mareograph,1905–2018
110
Annual mean level (cm)

100

90

80

70

60
1900 1920 1940 1960 1980 2000 2020

Source: Naval Hydrography Service data.

 54 ARGENTINA: VALUING WATER

Droughts Although areas of high rainfed crop production in

Buenos Aires, Córdoba, and Santa Fe provinces went
The frequency of drought events varies depending through several major droughts in the past decade, the
on the area, and can be attributable to various trend was no worse than in earlier periods, and the
causes, such as climatic tele-connectors (ENSO, SPI3 drought indicator for 1980–2018 was stable except
among others). Diaz, E. et al. (2018) make a spectral for normal cycles (figure 3.6). The same trend was
analysis of time series and determine multi-year observed in other areas of the country, which did not
recurrencies that vary from basin to basin. As an experience increased length of droughts (figure 3.7).
example, the Colorado River presents a dominant
cyclicality of 11 years of period. Humid areas such as Some periods had high incidences of
Cordoba, Entre Ríos, and Santa Fe are likely to have drought—1988–90, 1995–98, and 2006–12—but the
less precipitation than normal, while in the Northwest greatest intensities were distributed in different places.
region precipitation will probably follow its expected For example, the Neuquén area was particularly dry in
course (map 3.9). 1988–90 and 1995–98. Tucumán shared the 1988–90
drought, and surrounding areas had drought in 2012.

Map 3.9 Probability of Meteorological Drought, by Department

SPI3
0.00–0.02
0.02–0.04
0.04–0.06
0.06–0.08
0.08–0.10
0.10–0.12
0.12–0.14
0.14–0.16
0.16–0.18
0.18–0.20

Source: Data from the Center for Survey and Evaluation of Agricultural and Natural Resources (CREAN).
Note: The figure shows the probability that a particular department will be given a Standard Precipitation Index (SPI3) value below −1, indicating
drought. SPI3 reports on whether an area usually suffers episodes of low rainfall with respect to its own average.
 55

Figure 3.6 Drought in Areas of High Rainfed Agricultural Production (Buenos Aires, Córdoba, and
Santa Fe), 1980–2018
Standard precipitation index (SPI3)
2.5
2.0
1.5
1.0
0.5
0
–0.5
–1.0
–1.5
–2.0
–2.5
May-79 Nov-84 May-90 Oct-95 Apr-01 Oct-06 Apr-12 Sep-17

Source: Data from the Center for Survey and Evaluation of Agricultural and Natural Resources.

Figure 3.7 Cumulative Distribution of Months of Drought (SPI<-1) for Selected Provinces, Average Value
by Province, 1980–2017
50
45
40
35
30
25
20
15
10
5
0
25/05/1979 14/11/1984 07/05/1990 28/10/1995 19/04/2001 10/10/2006 01/04/2012 22/09/2017
Buenos Aires Corrientes Mendoza Neuquen Salta Tucumán Linear (Tucumán)

Source: Data from the Center for Survey and Evaluation of Agricultural and Natural Resources.
Note: The graph shows cumulative drought (SPI3 < −1) by province. It indicates a drought where there is a leap in the curve—the worse the
drought, the greater the leap. Showing no trend toward more pronounced slopes (more leaps) in recent years, the graph reveals, on average, a
drought every 3 years. North: Salta and Tucuman. East: Buenos Aires and Corrientes. West: Mendoza. South: Neuquén.

Water Demand and Water Balances more difficult to estimate.10 Other uses, such as
mining11 and fracking, consume less in general,
Current Water Demand but sufficient and systematic data for estimating
the amount are lacking (and consumption may
Irrigation is the most important water consumer
be more important in some provinces). The need
in Argentina, with 2.1 million irrigated hectares
for sectorial information is even more relevant, as
using 44.2 cubic kilometers a year, accounting for
the exponential growth of activities with intensive
85 percent of demand. Domestic and urban water
use of water, such as lithium extraction and
consumption is second, using 6.8 cubic kilometers
unconventional hydrocarbons, is expected. There
(13 percent), 80 percent of which will return to the
are even significant possibilities of water reuse in
environment. Industrial demand is third, using 0.87
these activities, aspects that would be of interest to
cubic kilometer (2 percent), whose return rate is
include in official statistics.12
 56 ARGENTINA: VALUING WATER

Domestic demand, potential and actual, is determined Supply–Demand Balance

by large population agglomerations. Four areas are
the most densely populated: the La Plata Basin, with The supply–demand balance shows water stress
70 percent of the population, the western pampas, clearly rising in the country’s central systems (Pampas,
the northern-central area, and the Central Andes Serrano, Mar Chiquita, and Colorado rivers). The stress
(map 3.10). The country’s humid region, and especially on the La Plata River and Buenos Aires system would
the transitional area between humid and semiarid, become noticeable by 2030. Comparing the current
has 80 percent agricultural production, mostly rainfed. and business as usual scenario for each macrobasin
The arid and semiarid regions require irrigation for shows declines in the resource and in the surplus
agricultural production. for environmental use more clearly.13 Surpluses
decline in all cases (figure 3.9). However, the data
Following the SDGs, this study uses 2030 as the available (temperature, snow, and rainfall stations)
horizon for evaluating demand. It describes a moderate are insufficient to support smaller-scale conclusions.
growth consistent with current trends, called “business Detailed data and analysis are included in appendix A.
as usual” (figure 3.8). Demand (current and future) was
disaggregated in macrobasins to calculate the water The productive areas in the upper basins of the
balance, as the initial step to estimate water stress Colorado and Serrano systems (Catamarca, La Rioja,
(SDG target 6.4). Chapter 6 will discuss an alternative, Mendoza, and San Juan provinces) are the most critical
“active,” scenario. in terms of future water use. They are very sensitive
to phenomena such as snowmelt, which will change

Map 3.10 Population Density by Province, 2018, and Major Irrigation Locations and Area Irrigated per
Province, 2015

Population density
(inhabitants per square km)
0–1
1–2
2–3
Irrigated area by province (ha)
3–6
<17,000
6–9
17,000–50,000
9–13
50,000–120,000
13–23
120,000–270,000
23–50
>270,000
50–666
666–30,198

Source: National Institute of Statistics and Census 2018 data; FAO and PROSAP 2015 data.
Note: Left: population density (inhabitants per square kilometer) by province, 2018. Right: area irrigated by province (hectares).
 57

Figure 3.8 Aggregate Demand Today and in 2030

a. Current demand b. Demand in 2030—Trending scenario

6.8 km /year 3

Industrial, 13%
8.3 km3/year
Industrial,15%

0.9 km3/year
Industrial, 2% 0.9 km3/year
Industrial, 2%

44.2 km3/year 44.2 km3/year

Irrigation, 85% Irrigation, 83%

Source: Original estimates based on data from the National Institute of Statistics and Census, and FAO and PROSAP (2015).

Figure 3.9 Water Demand and Surface Water Supply, Current and Business as Usual Scenario,
Incorporating Climate Change
60
Supply and demand in km3 per year

20

15

10

0
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD
Actual WS
2030 WS
Actual WD
2030 WD

Mar Chiquita Serrano Pampean De La Plata and Limay-Neuquen Parana-Paraguay Colorado Patagonian
Buenos Aires Negro Uruguay River Rivers
Domestic demand Irrigation demand Industrial demand Water supply

Note: WS: water supply; WD: water demand. Water surplus means surface runoff only. Where demands exceed surface surplus, it only means that
groundwater or snowmelt are being tapped to satisfy demand. No information exists on what proportion of groundwater tapped is renewable.
This analysis uses only climate change projections for 2030, which are similar for both RCP4.5 and RCP8.5 emissions.
 58 ARGENTINA: VALUING WATER

as temperatures rise. They have been studied using Rio Negro, and Santa Cruz. According to data from the
detailed models (HydroBID and CHAC). 2017 National Census of Mining Activity, 22.7 percent of
the establishments use water in their production process.
The most important rainfed production areas are Of this group, 68.8 percent have their own underground
experiencing water stress, which will increase in source in 66.3 percent of the establishments, while in
the future. The Buenos Aires system is at its limit, 33.7 percent of the cases it is from a surface source.
and the Pampas system is already clearly deficient. 12. Lithium production grew at an annual rate of 6.6 percent
Macrobasins in surplus are the Limay–Neuquén–Negro, between 2007 and 2017 (BP 2019), and MIMEM esti-
Paraná–Paraguay–Uruguay, and Patagonian river basins. mates a growth of 388 percent between 2017 and 2022
(López et al. 2019). For unconventional oil, a growth rate
Notes of 17 percent per year is expected until 2030 (MINEM
2017).
1. From a simplified surface water balance based on Bianchi
and Cravero (2010). 13. See map 3.2 for macrobasins.

2. The dependency coefficient estimated by FAO 2015 is

67 percent, which includes also groundwater sources References
(FAO 2015).
Auge 2004. Regiones Hidrogeológicas. La Plata,
3. Environmental Protection and Sustainable Development Buenos Aires.
of the Guaraní Aquifer System (CeReGAS 2008).
Barros, V., A. Menendez, C. Natenzon, J. Codignotto,
4. Auge (2004), analyzing the groundwater systems in R. Kokot, and S. Bischoff. 2005. “Inundación y
Argentina, is an accepted resource, but in some cases the
Cambio Climático. Costa Argentina del Rio de
assessments are essentially qualitative.
la Plata.” In El Cambio Climático en el Río de la
5. This study applies the Water Balance Model to estimate Plata, edited by V. Barros, A. Menendez, and
water availability and uses internationally recognized cli- G. Naggy, 41–52. Buenos Aires: CIMA.
mate databases (CRU, GPCC, and TerraClimate) with more
than 100 years of data. Thus, it uses actual rather than Barros, Vicente, José Armando Boninsegna, Inés
potential evapotranspiration calculations. It analyzes the Angela Camilloni, Martina Chidiak, Graciela Odilia
results of each of these databases separately, and this Magrín, and Matilde Rusticucci. 2014. “Climate
chapter summarizes the most notable results. The model Change in Argentina: Trends, Projections, Impacts
has also been compared with others, such as direct and Adaptation”. WIREs Climate Change 2015,
balances (where potential evapotranspiration is deducted
6: 151-169.
from precipitation) published by Argentina’s National
Institute of Agricultural Technology and the Secretariat of Bianchi, Alberto, and Silvia Ana Cravero. 2010.
Infrastructure and Water Policy, and itemized models of Atlas Climatico Digital de la Republica
different representative areas of the country, carried out Argentina. Instituto Nacional de Tecnologia
with the HydroBID and CHAC models, usually obtaining
Agropecuaria (INTA). Disponible en.
adjustments and concordant trends.
https://inta.gob.ar/documentos/atlas​
6. Representative concentration pathway (RCP) is a measure -climatico-digital-de-la-republica-argentina.
of greenhouse gas concentration.
Bianchi, Guillermo J. 2015. “Inundación de abril de
7. In trends recorded by the National Meteorological Service 2013: estudio de la precipitación en la ciudad
and the widely quoted study by Barros et al. (2014).
de La Plata como experiencia para la revisión de
8. Heinzenknecht (2011), a study for the Office of los criterios aplicados al proyecto de desagües
­Agricultural Risk. y redes de alerta.” III Jornadas de Investigación,
9. This upward trend was previously recorded by Barros Transferencia y Extensión de la Facultad de
et al. (2005). Ingeniería. Terceras Jornadas de Investigación,
Transferencia y Extensión, 434–39. La Plata:
10. To define future scenarios, in the case of irrigation, data
Universidad Nacional de La Plata. http://sedici​
from FAO and PROSAP (2015) on 2.1 million irrigated
hectares are used; in the case of drinking water, popula- .unlp.edu.ar/handle/10915/47840.
tion growth is consistent with current trends according to BP. 2019. Statistical Review of World Energy. 68th ed.
National Institute of Statistics and Census estimates; and, bp.com/statisticalreview.
with regard to industrial demand, the expected annu-
al evolution rates for the current trend 2004–18 were Camillon, Ines, and Vicente Barros. 2000. “The
­considered. Paraná River Response to El Niño 1982–83 and
11. In 2018, the main exported products were gold, silver, 1997–98 Events.” Journal of Hydrometeorology
lithium, copper, lead, and zinc. This type of exploitation is 1 (5): 412–30. https://www.researchgate.net/
centered in the provinces of Jujuy, Catamarca, San Juan, publication/249612911_The_Parana_River_
 59

Response_to_El_Nino_1982_83_and_1997_98_ López, Andrés, Martín Obaya, Paulo Pascuini, and

Events. Adrián Ramos. 2019. Litio en la Argentina:
Oportunidades y desafíos para el desarrollo
CeReGAS (Centro Regional para la Gestion de Aguas
de la cadena de valor. Inter-American
Subterraneas). 2008. Protección Ambiental
Development Bank.
y Desarrollo Sostenible del Sistema Acuífero
Guaraní (SAG). Centro Regional para la Gestion Lovino, Miguel A., Omar V. Müller, Gabriela V. Müller,
de Aguas Subterraneas. http://www.ceregas. Leandro C. Sgroi, and Walter E. Baethgen. 2018.
org/publicaciones/proteccion-ambiental-y- “Interannual-to-Multidecadal Hydroclimate
desarrollo-sostenible-del-sistema-acuifero- Variability and Its Sectoral Impacts in
guarani-sag/. Northeastern Argentina.” Hydrology and Earth
System Sciences 22 (6): 3155–74. doi: 10.5194​
CIC Cuenca del Plata. 2016. Balance hídrico en
/­hess-22-3155-2018.
la Cuenca del Plata: disponibilidad y usos,
considerando escenarios futuros: modelos de MINEM (Ministerio de Energía y Minería). 2017.
gestión. 1a ed. Ciudad Autónoma de Buenos Escenarios Energéticos 2030. Dirección Nacional
Aires: Comité Intergubernamental; Estados de Escenarios y Evaluación de Proyectos.
Unidos: Organización de los Estados Americanos​ Ministerio de Energía y Minería. http://
—OEA, 2017. https://cicplata.org/wp-content/ www.energia.gob.ar/contenidos/archivos/
uploads/2017/09/programa_de_acciones_ Reorganizacion/planeamiento/escenarios/
estrategicas_de_la_cuenca_del_plata.pdf. as15160516401.pdf.
Díaz, Erica Betiana, Carlos Marcelo García, Andrés Paredes, J. M., S. M. Ocampo, N. Foix, S. X. Olazábal,
Rodríguez, Oscar Dölling, Juan C. Bertoni. 2018. M. A. Fernández, A. Montes, I. Castro, W. Maza,
“Evolución Temporal de Sequías Hidrológicas J.O. Allard, S. Rodríguez, C. San Martín, A. Simeoni,
en Argentina y su relación con Indicadores G. Mendos, J.A. Quagliano, J.M. Turra, J. Maino,
Macroclimáticos”. Tecnología y ciencias del agua F. Sánchez, M.N. Valle. 2017. Sistemas fluviales
9: 01-32. efímeros e inundaciones repentinas en Comodoro
Rivadavia: causas, procesos y mitigaciones.
ECLAC (Economic Commission for Latin America and
Comodoro Rivadavia: Informe Técnico FCNyCS.
the Caribbean). 2018. Análisis retrospectivo de
UNPSJB.
las inundaciones: lecciones y recomendaciones—
Argentina. https://www.cepal.org/sites/ Richey, Alexandra, Brian F. Thomas, Min‐Hui Lo, John
default/files/static/files/lcarts2018_1-final.pdf. T. Reager, James S. Famiglietti, Katalyn Voss,
Sean Swenson, and Matthew Rodell. 2015.
FAO (Food and Agriculture Organization). 2015.
“Quantifying Renewable Groundwater Stress
AQUASTAT Country Profile: Argentina. FAO. Rome
with GRACE”. Water Resources Research 51:
FAO and PROSAP. 2015. Estudio del potencial de 5217–5238.
ampliacion del riego en Argentina. Buenos Aires:
SAyDS (Secretaría de Ambiente y Desarrollo
FAO.
Sustentable de la Nación). 2015. Tercera
Heinzenknecht, German. 2011. Proyecto de riesgo y Comunicación Nacional del Gobierno de
seguro agropecuario. http://www.ora.gob.ar/ la República Argentina a las Partes de la
informes/enso.pdf. Convención Marco de las Naciones Unidas sobre
Cambio Climático. Ciudad Autónoma de Buenos
IGRAC (International Groundwater Resources
Aires: SAyDS.
Assessment Centre) and UNESCO-IHP (United
Nations Educational, Scientific and Cultural SAyDS. 2019. Programa de acción nacional de lucha
Organization International Hydrological contra la desertificación, degradación de
Programme). 2015. Transboundary Aquifers. tierras y mitigación de la sequía: actualizado
Edition 2015. Scale 1:50 000 000. Delft, a la meta 2030. Ciudad Autónoma de Buenos
Netherlands: IGRAC, 2015.. Aires: SAyDS. https://www.argentina.gob.ar/
sites/default/files/pan_-_programa_de_accion_
Karol, Jorge Leonardo, and Gustavo Alberto San Juan.
nacional_2019.pdf.
2018. Saber qué hacer: Construcción de un
sistema para la gestión integrada del riesgo Sindico, Francesco, Ricardo Hirata, and Alberto
hídrico en la región del Gran La Plata. Facultad Manganelli. 2018. “The Guarani Aquifer System:
de Arquitectura y Urbanismo (Universidad From a Beacon of Hope to a Question Mark in the
Nacional de La Plata) y CONICET. http://sedici. Governance of Transboundary Aquifers.” Journal
unlp.edu.ar/handle/10915/67730. of Hydrology: Regional Studies 20: 49–59.
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UNEP-DHI Centre on Water and Environment and UNEP Javier Heredia, and Takuya Matsumoto. 2020.
(United Nations Environment Programme). 2016. “Using Isotope Data to Characterize and
Transboundary River Basins. Nairobi: UNEP. Date Groundwater in the Southern Sector
of the Guaraní Aquifer System.” Isotopes in
Vives, Luis, Leticia Rodríguez, Marisol Manzano, Environmental and Health Studies 56 (5–6):
Andrés Mira, Luis Araguás, Lucía Ortega, 533–50.
C HAPT E R 4

Water Sector Architecture

T
his chapter describes the architecture of corresponding territories. The national government is
Argentina’s water sector and the main reasons responsible the issuance of minimum standards for
for performance challenges that will be identified environmental protection (PMPA), and for promoting
in chapter 5. The architecture is discussed in terms of citizens’ well-being.1 Thus it plays an important role in
governance, and of infrastructure and financing. promoting the rational and sustainable use of water.
It also plays a key role in investments, through federal
Governance budgets. The national government has thus had a
large part in the expansion of drinking water and
Governance encompasses the legal frameworks, policy sanitation services, hydropower, and the development
settings, and institutional arrangements for managing of irrigation.2
water resources, services, and hydrometeorological
risks. In Argentina’s federal system, jurisdiction over In general, legislation on environmental management
water belongs to the provinces. Responsibilities in Argentina is unsystematic and is limited by legal
delegated to the national government include social, and operational administration gaps.3 With exceptions,
economic, and environmental features related enforcement authority belongs to the provinces by
to promoting and protecting public well-being. constitutional design, and the national environmental
Relevant federal programs and investments in the authority lacks the power to act directly, in the
past addressed water supply, sanitation, irrigation, style of the U.S. Environmental Protection Agency
and hydroelectricity to boost water security and (see appendix E, example 5).
socioeconomic development. But such investments The efforts of the national government and the
were more relevant in the 20th century than today. provinces to promote a legislative framework to
establish minimum standards for environmental
Water Resource Management protection in water management have been
Regulatory, Institutional, controversial and insufficient. Although it has been
cited in several decisions, Law No. 25.688 of 2002
and Policy Framework
on Environmental Water Management has not been
Each province has jurisdiction over the natural regulated, operationalized, or applied directly and
resources, including water and related services, in its conclusively in a specific case. The law refers to various
 62 ARGENTINA: VALUING WATER

aspects of water management: interjurisdictional basin role,” acting at the parties’ request.8 In addition, the
committees; guidelines for protecting and replenishing national government represents Argentina in efforts to
aquifers; standards for environmental and water quality; manage water resources alongside other countries.
and development of a national plan for preserving,
As the main investment source for water infrastructure,
developing, and using water judiciously. The entity
the national government works through bilateral
responsible for environmental policy coordination, as
agreements with each province but still lacks clear
defined by this law, is the Federal Environmental Council
rules for prioritizing projects and allocating funds. In
(COFEMA), which establishes special commissions
several other federal countries, such as Australia, policy
to articulate and coordinate the implementation of
agreements between the national government and
environmental policy and management instruments.4
the states, in conjunction with federal spending power,
Unconstitutionality objections to the law regarding the
have led to effective concerted action (appendix E,
creation of bodies with decision-making powers and
example 1).
the congress’s delegation of legislative competence for
the establishment of PMPAs to the national government The Secretariat of Infrastructure and Water Policy
remain in force, as has been observed by COHIFE, some (Secretaría de Infraestructura y Política Hídrica, SIPH),
provinces, and legal authorities (AGN 2015, 109–110; on behalf of the national government, ensures the
Pinto 2003, 2005; Petri, Rohrmann, and Pilar 2005; protection of water resources and equitable access to
Valls 2005). water in quality and quantity (figure 4.1). It promotes
the protection, conservation, and responsible use of
In 2003, the provinces and national government water resources through the design, coordination,
agreed on the Guiding Principles of Water Policy and implementation of water policies. One of its main
(Principios Rectores de Política Hídrica, PRPH), which missions is to mediate and coordinate between the will
bring technical, social, economic, legal, institutional, and need of the provinces (SIPH 2019). The Directorate
and environmental aspects to the concept of water of Hydraulic Projects of the National Directorate of
resources management. This has been an important Water Policy and Federal Coordination has among its
step toward adopting a more integrated approach. powers the technical, environmental, economic, and
However, the General Auditor of the Nation (AGN) has legal evaluation of the projects received.
observed that the principles are not well aligned with
national environmental legal norms and do not cover The Ministry of the Environment and Sustainable
important concepts such as environmental services. Development (MAyDS) is the national authority
Furthermore, according to the institutional evaluations in charge of environmental policy, sustainable
of PROSAP, their implementation is still in process and development, rational use of natural resources, and
progress varies widely throughout the territory.5 climate change adaptation and mitigation.9 This ministry
includes the Secretariat for Climate Change, Sustainable
The federal institutional framework seeks to resolve Development, and Innovation; the Secretariat for
interprovincial challenges through the COHIFE.6 Made Environmental Control and Monitoring; and the
up of the provincial states, the national government, Secretariat for Environmental Policy in Natural Resources
and the CABA, COHIFE coordinates federal water (figure 4.1). The MAyDS also has responsibilities related
policy and harmonizes jurisdictions’ water legislation, to policy design, regulation, and implementation of
policies, and management.7 In practice, it is a forum water-related resources management and territorial
for articulating the country’s water policies, it has no planning at the national level.10
executive powers, its agreements are not binding, and
it still is in the process of developing its full potential. Provincial legal frameworks have evolved in diverse
COHIFE’s participation in approving, prioritizing, and ways. Some provinces’ regulations are well developed,
selecting funding granted by the national government while those of others are more basic and do not
is not mandatory, nor are its decisions binding on the address such key challenges as floods or water quality
government. (Pochat 2005). Provinces dependent on irrigation
established water ordinances or laws in the 19th
To supplement COHIFE’s functions, the national century, as did Mendoza in 1884, for example.11 The
government provides support, much of it only next ones came only in the 1950s, to deal with the
referential. In addition to providing financing, the questions and priorities of that time (figure 4.2). In the
national government collects and disseminates 1970s, more laws appeared, including principles of
information; supports planning, skill training, scientific water policy. Institutions adopted an interdisciplinary
research, and professional capacity building; and approach that included an economic concept of water.
generates methodological criteria and standards for the In the 1990s, laws treated water as a natural resource
provinces. In relation to interjurisdictional conflicts, the integral to the environment, including such concepts
national government has “a facilitating and arbitrating as water risk areas, environmental impacts, water
 63

Figure 4.1 Institutions Responsible for Water and the Environment

Provincial Ministry of
COHIFE Ministry of Environment and
Water Public Works
Directorate Sustainable Development
COFEMA
Provincial
Secretariat of Secretariat of Secretariat of Climate Secretariat of
Environmental
Interprovincial Infrastructure and Environmental Change, Sustainable Environmental
Agency
Level Water Policy Control and Development and Policy in Natural
Provincial Level Monitoring Innovation Resources

Undersecretariat of Undersecretary
Operational Management of Hydraulic
of Water Projects Works

National National National National National Directorate of

National National Directorate of
Directorate of Directorate of Directorate of Environmental Planning
Directorate of Directorate of Climate Change
Water Policy and Drinking Water Water Projects
Hydraulic Works Multipurpose Uses
Federal Coordination and Sanitation Management
National
Directorate of National Directorate of
Environmental Biodiversity
Directorate of
Directorate of Directorate of Assessment
Water Resources Directorate
Policy and Specific Water
Monitoring of Works
Programming Projects
Systems National Directorate of
Water Ecosystems

Directorate of
Directorate of Directorate of
Technical
Hydraulic Project Execution National Directorate of
Assistance and
Projects Services Forest
Strengthening

River Basin
Directorate of Institutions
River Basins
Interprovincial
Level

Subordinate bodies Representacion or supervision

Source: Based on data from State Map, National Directorate of Organizational Design https://mapadelestado.jefatura.gob.ar/estructura.php.
Note: Blue: national; orange: provincial; yellow: interprovincial. Within the decentralized agencies at the national level, the National Water
Institute (INA), the Dam Safety Agency (ORSEP), and the National Water Sanitation Works Agency (ENOHSA) can be mentioned. COHIFE = Consejo
Hídrico Federal (Federal Water Council); COFEMA = Consejo Federal de Medio Ambiente (Federal Environmental Council).

Figure 4.2 Timeline of Provincial Water Laws and Codes

Chubut, La Pampa and CABA
Corrientes and Tucumán
Catamarca and Córdoba

La Rioja and Misiones

Salta and Entre Rios

Santiago del Estero

Tierra del Fuego

Buenos Aires
Santia Cruz

Río Negro
Mendoza

Neuquén

San Juan

Santa Fe
Formosa

San Luis
Chaco
0 Jujuy

60

90
80

0
5

2
19

19

19
18

19

19

20

20

20

Source: Authors.
Note: The years correspond to the last comprehensive reform or consolidated text of the provincial water law or code.
 64 ARGENTINA: VALUING WATER

registration, water policy and planning, interprovincial provisions.14 There are also provincial laws creating
waters, and watersheds as planning and administrative basin authorities with multiple responsibilities,
units with watershed committees. All provinces have broader than just water, for territorial development.
enacted water laws. But these mandates have not been backed by
instruments for interinstitutional coordination with
These heterogeneous institutional frameworks try to provincial and municipal entities. So, challenges
respond to local problems and hydrological diversity. arise because inadequate resources, competition
Each province has its own water management with other political units, and ineffective decision-
system with particular functions, financing, and making procedures have kept basin authorities from
hierarchical dependencies. This institutional structure developing their full potential. On the other hand, the
fits Argentina’s diverse local issues and hydrological breadth of general and comprehensive developmental
conditions. The approval and adoption of the Guiding mandates dilutes the competencies, capacities, and
Principles of Water Policy have kept the disparities from resources necessary for the management of a specific
multiplying. The provinces that function most efficiently and complex good such as water.15 Conflicts of
are those with more advanced administrations due to a interest are generated, functions are subordinated to
long tradition of water-intensive uses such as irrigation those with the greatest political profit, and transaction
or hydropower. costs are high.
The legal, regulatory, and institutional frameworks of In basins with shared water resources, Argentina’s
the more experienced provinces consolidate decades federal structure requires provinces to interact with
of managing scarcity, especially around irrigation. one another, with the frequent participation of the
These provinces have developed and maintained national government. Various basin organizations
registers of discharge permits, drilling companies, have been created to respond to specific issues, with
public and private waters, and rights over groundwater functions on water resources management delegated
and surface water. Good practices include user to them by the corresponding provinces. Some of
organizations, which are essential in decentralizing these basin committees have been quite effective,
water management functions; developing, having also their own budget for operational,
maintaining, and operating water works; incorporating managerial, technical, and administrative personnel
reciprocal social and state control mechanisms; and (examples include the Interjurisdictional Basin
other features supporting management systems’ Authority for the Limay, Neuquén, and Negro
effectiveness. rivers, created in 1985; the Water Management
Authority for the Colorado River, created in 1956;
In other provinces there is space for improvement in
or the Regional Commission of the Bermejo River,
regulatory development and institutional capacities.
created in 1981).16
Challenges usually arise where local governments
assign low priority to the sector. Although local New basin committees created recently have similar
governments are assigned ownership of the public bylaws with incipient models for organizing, financing,
water domain and have the authority to manage its and acting. In general, they have deliberative functions
externalities, few do so through laws, institutions, or under agreements focused on jointly developing and
activities. Space to improve relates to the capacity operating specific projects, with a strong role for the
to evaluate the water resource, identify the users, provinces while the national government plays a more
oversee infrastructure operations in the field, or conciliatory role.17 Their capacities are like those of
evaluate environmental impacts or the collection of the provincial entities that underlie them. They often
financial resources for management12. There is also a face constraints in financing and in management
problem of inter-generational knowledge transfer in instruments and capacity (map 4.1).Furthermore,
technical institutions, where there are difficulties to their plans, if any, are most often still embryonic
replace retired staff with high skills and knowledge. and limited in scope. This situation contrasts to basin
organizations’ role in other federal countries, especially
River Basin Institutions and in their financing capacity, clear executive capacities,
User Participation and representation of stakeholders (appendix E,
example 2).
Beyond the Guiding Principles of Water Policy, no
policy or regulatory framework provides the specifics Argentina has good examples of irrigation
of integrated watershed management at the river organizations participating in water management.
basin level.13 There are, however, national laws The participation reduces the pressure on national
and jurisprudence related in one way or another to government management and saves public spending.
river basin management that include water-related It translates into empowerment, along with water
 65

Map 4.1 Interjurisdictional River Basin Entities

New Committee 2016–2019

Source: SIPH 2019.

rights, for users. Such organizations are particularly functions, mainly due to lack of representativeness
effective in Rio Negro, San Juan, and Mendoza. of the main stakeholders. In the Santa Fe and Buenos
The organizations concentrate on distributing Aires provinces, where floods are frequent, user
water, resolving conflicts, approving annual plans, committees or consortiums manage networks of
managing and maintaining common infrastructure, drainage canals to mitigate flooding. But municipal
and collecting income to support their functions.18 leaders often capture these local entities, with
But despite this institutional scheme, the absolute users and civil society not directly participating.
preeminence of agricultural use, the limitation of The committees meet infrequently or not at all, do
entitled stakeholders and exclusion of groundwater not systematically reflect social demands, and have
users, and other cultural, economic, and territorial not set a medium- or long-term vision to guide their
factors (such as rural exodus and new irrigation work. Their geographical jurisdiction is too large for
technologies) have decreased participation, gradually them to deal with day-to-day management problems
weakening irrigation organizations’ role. (World Bank 2017d). Few canal user associations are
recognized by the provincial authorities.19 When floods
In nonirrigated areas, user committees face a affect multiple jurisdictions and there is no proper
disconnect between their theoretical functions as interprovincial management, such problems worsen
assigned by provincial regulations and their actual since user organizations may come into conflict.
 66 ARGENTINA: VALUING WATER

Policy Instruments revenue from user charges to sustain water authorities’

management is inconsistent across provinces. In some
The National Water Plan, promulgated in 2017, was a
cases, this revenue goes toward the province’s general
major first step in establishing the foundations for water
revenue,22 while in others it goes toward financing the
security in Argentina. It identified key water security
recurrent costs of water administration or remains in
challenges and defined well-conceived strategic pillars
the irrigation consortium. In general, the charges have
to support infrastructure for water supply and sanitation
a fiscal function. They are not designed as economic
services, water for production, adaptation to climate
instruments that influence user behavior.
extremes, and multipurpose projects.
Other provinces have kept tariffs frozen for more
Yet, the plan was still markedly descriptive. The than 20 years, covering only 5 percent of the water
interventions it proposed mainly focused on authority’s budget. Charges for irrigation are based on
implementing infrastructure from the federal angle, the irrigated area rather than on volume of water used,
without any link to provincial policies. No analysis so users have no incentive to use water efficiently or to
supported a ranking of interventions, except irrigation. expand the area irrigated.
In general, no strategic water plans exist at the
provincial level, but the national plan noted a series No national regulations limit effluents or ensure
of studies being carried out on hydrologic planning the quality of effluent-receiving bodies. Provincial
in different basins and flood mitigation strategies in legislation and regulations contain the main
several severely affected provinces. These studies instruments directly controlling water pollution, such
should lead to a more informed national plan and help as discharge permits and limits, general prohibitions,
provinces and basins decide priorities. The National establishment registries, and disciplinary procedures
Water Plan was vague in establishing deadlines, and sanctions, among others. Although the problems
responsibilities, resources, and timetables for concrete resulting from pollution affect national interests,
actions. It lacked associated processes for evaluating including public health, the environment, and the
costs and benefits, or measurable economic, social, and economy, Argentina has made no progress in
environmental indicators with minimum performance establishing common criteria for water pollution across
thresholds.20 provinces. Such parameters need not be homogeneous
and unique for across the entire country, but they
In areas with scarce water and high water stress, should exist as a reference, regardless of whether they
access to new water rights is complex. This is seen are adjusted to specific contexts.
in the arid provinces of the irrigated midwest, where
increased demand and reduced supply due to climate Existing pollution charges are not designed as
change put more pressure on the scarce resource, economic instruments.23 The “polluter pays” principle
multiplying uncertainty about water rights, particularly leads in most provinces to fees for tipping or discharge
for new uses. But rigid administrative systems permits and fines for unauthorized dumping. But
generally do not take updated water balances into the fines do not have sufficient deterrent power,
account, prioritizing current uses without considering and provinces have little capacity for control, and so
efficiency, as reported by the Food and Agriculture these instruments have limited effectiveness. These
Organization and the Provincial Agricultural Services problems add to the fact that there are no procedures
Program (FAO and PROSAP 2015). This rigidity is or provisions established for periodic control samples,
the product of several factors: ambiguity regarding water quality monitoring, and the implementation of
separation between reasonable regulation and remediation measures. Again, there are exceptions,
confiscation, a lack of capacity to measure and control such as AIC or COIRCO, which perform systematic
the uses that waste water beyond its legal allocations monitoring campaigns to measure water quality.24
(e.g., clandestine irrigation), the economic costs
of increasing efficiency (when these outweigh the Mitigating Water-Related Risks
benefits they bring), the social and economic need to
Existing legislation lays the groundwork for properly
maintain existing production processes, and a lack of
managing urban and rural space to weigh land use
flexibility in facilitating the private exchange (regulated
against flood and drought risks. At the national level,
and controlled) of water rights.
land use and planning are recognized in the National
Provinces have enacted laws charging for water use. Agricultural Emergency Act (no. 26,509) creating the
Existing systems charge for using or extracting water, National System for the Prevention and Mitigation
discharging effluents, and using infrastructure (common of Agricultural Emergencies and Disasters, which
in irrigation). With a few exceptions, such as Rio Negro supports land use regulation and aims to prevent or
or Mendoza,21 no charges are assessed for hydrological mitigate weather damage. The statute establishing
and meteorological information. However, the use of the National System for Integrated Risk Management
 67

and the National System for Comprehensive Risk commonly used for territorial planning is the non-flood
Management and Civil Protection (no. 27,287) aims at certificate, which confirms that a property is located
comprehensive defense against hydrometeorological in a non-floodable area. Those permits are usually
risk. But planning under these systems faces difficulty issued by the competent provincial authority and
in coordinating municipal land use management with required for public investment with national funds.
provincial water resource management, compounded But in practice, and particularly in some peri-urban
by the lack of enforcement authority for flood risk areas, the certification process often gets distorted
management, which is granted instead to provincial due to social pressure from irregular residential and
water agencies. agricultural settlements that occupy unsuitable lands.
Many municipalities require that urban development
In rural areas, national and provincial governments
not generate more runoff by creating impermeable
are trying to improve soil conservation and reduce
surfaces than the land or plot already generates, but
vulnerability to droughts and flooding. During 2017
they have little control over compliance, since no
and 2018, guides on sustainable land management
technical analysis of current or future hydrological
and soil conservation practices for Argentina’s
conditions is carried out.
different regions were prepared by some provincial
authorities and distributed, but they offer no specific Densely populated metropolitan areas, such
economic incentive mechanisms for adopting them.25 as the AMBA, offer possibilities for better
Also launched in 2018, the National Program of municipal collaboration around basins.31 Even so,
Sustainable Good Agricultural Practices (Resolution hydrometeorological risk management through zoning
no. 174/18)26 includes soil and water conservation is not well integrated into urban or basin plans. The
among its objectives. Some provinces such as Entre network of actors and institutions in the metropolitan
Rios or Santa Fe have soil use plans, and require region interact with municipal management,
them in their respective provincial laws, but none presenting different levels of complexity and varied
compels compliance—unlike, for example, Uruguay, results when it comes to addressing the consequences
which applies its land use regulation with control, of climate change (Lanfranchi et al. 2018). The lack
sanctions, and effective enforcement (appendix E, of space for multilateral participation is evident, since
example 3). Indiscriminate land clearing—the object these links are generally bilateral between institutions
of repeated judicial rulings—leads to soil degradation and the municipality in particular. Even in the Matanza
and consequent flooding or increased damage from Riachuelo basin, which has a basin authority and even
hydrometeorological droughts. To counter it, Argentina some incipient planning instruments, municipalities
has applied the Native Forests Act 26,331. That law take measures that affect runoff without coordinating
ordered a Native Forests Land Classification, which with the authority or taking planning instruments
most provinces have already finalized. into account. In this way, interventions are carried
out at the municipal level, ignoring upstream and
Defining a public water domain along water courses
downstream relations and neglecting ways to
and maintaining waterways are pending issues
coordinate planning to mitigate basin-wide flood risk
critical to reducing exposure to floods.27 A recent
(Lanfranchi et al. 2018).
reform to the Civil Code 26,99428 reduced the width
of the towpath of navigable waterways from 35 to The most important policy instruments to increase
15 meters, thereby limiting the space for protection resilience against droughts include the elements
and planning areas. It also reaffirmed defining the that allow comprehensive management of the
hydrologic public domain as the average of ordinary resource. These need to be reinforced and they
maximum floods (Civil and Commercial Code, Articles include hydrologically informed criteria for allocating
235/1960). This definition, separating the public the resource between sectors, particularly reinforcing
floodable domain from the private domain, is critical control and coordination measures during peak times
for preserving natural floodplains and reducing to avoid conflicts, and promote efficiency measures.
exposure to flooding. While it is being implemented This chapter analyzes the needed regulatory and
effectively in provinces such as Rio Negro,29 in many institutional framework, and chapter 5 will explain
other provinces it has yet to be demarcated. In this challenges in the proper management of the resource.
regard it is worth mentioning that some work toward
defining the public domain is being conducted by a Water Services
COHIFE working group, by some competent provincial
authorities (such as Buenos Aires and Corrientes), and Water Supply and Sanitation
by river basin committees such as AIC.30
The water supply and sanitation sector has changed
The lack of adequate regulation is a smaller problem over the past century. Argentina has had four distinct
than the lack of compliance. The instrument most institutional reform periods (figure 4.3):
 68 ARGENTINA: VALUING WATER

Figure 4.3 Timeline of Key Reforms and Drivers

Two major national Economic recession The 2001 economis

Foreign debt crisis Support from IFIs
health epidemics due to WWII crisis

Centralization Decentralization Privatization Renationalization

1912–1280 1980–1990 1991–2002 2002-today

Late 1800s... 1950s 1980s 1990s 2000s Present

Source: Authors.
Note: IFIs = international finance institutions.

• 1912–80: centralization, influenced by a traditional Without federal policies and standards, and with
public administration approach and exemplified provinces and municipalities unable to manage
by major federal funding and the establishment and finance services, water supply and sanitation
of National Sanitary Works (Obras Sanitarias de la investments decreased. In the 1980s, when a foreign
Nación or OSN). debt crisis drove reforms, the government of Argentina
• 1980–91: decentralization, marked by dispersing promoted a policy, backed by international finance
powers to provincial governments and establishing institutions (IFIs), of privatizing water supply and
provincial public enterprises, a new public sanitation service, while the national government
management trend influencing administrations. maintained ownership and regulatory agents
• 1991–2002: privatization, when reforms transferred were tasked with control and regulation. About
water supply and sanitation service administration 20 concessions of water utilities to private companies
to private concessionaires, mostly international took place across Argentina in medium and large cities,
consortia. and across entire provinces.32 By end of the 1990s,
• 2002–present: renationalization, renewing public private provision peaked at 70 percent of service
sector involvement in the sector. (Gouvello, Lentini, and Brenner 2012). Most concession
contracts included the following features:
The traditional public administration period featured
a strong centralized role for the state pursuing social • Public ownership of assets, with concessions for an
and social equity goals. OSN assumed responsibility average of 30 years.
for building networks and delivering water supply • International consortia partnering with local firms
and sanitation service in cities across Argentina as service providers, while independent provincial
with the national treasury predominantly financing regulatory agencies with varied forms and functions
the sector. oversaw the concessions as defined by contract.

Fiscal constraints in the 1980s, following a series of • Full cost recovery as a principle of tariff policy, to
macroeconomic policies after 1976, paired with a lack cover operating, maintaining, and expanding service
in each concession.
of national resources, forced the transfer of water
supply and sanitation responsibility to the provinces In the early 2000s, many concession contracts
under National Act No. 18,586. This measure was established during the privatization phase were
not complemented by an economic evaluation of terminated. The terminations followed heavy scrutiny
the financing and payment capacity in the provincial by user groups in the late 1990s of private companies’
economies that received the transfer of competencies. application of the full cost recovery principle and
During decentralization, the national government noncompliance with contractual commitments
retained water supply and sanitation service jurisdiction (Latinobarómetro 2003). The concession contracts
only for the CABA and 13 peri-urban municipalities in required private companies to invest in expanding
the AMBA. Otherwise, responsibility for service delivery service, granting them the right to recover costs
was decentralized to the provincial governments. through tariffs. Initially, this feature attracted private
In 1995, the National Water Works Sanitation Agency sector participation, yet it was not backed by adequate
(ENOHSA) was established to supervise public water quality control mechanisms. And cost recovery through
infrastructure development programs for drinking tariffs did not promote expanding service to poor areas,
water and sanitation. since new users could not afford the costs of new
 69

connections and tariffs. Contract terms for affordability Regulatory Framework

and cost of expansion had been poorly reviewed and
Regulation of drinking water and sanitation
negotiated (Guasch 2004; Andrés, Diop, and Guasch
services is a provincial competence. Fourteen
2007; Seillant 2011).
provinces have regulatory entities at the provincial
Contractual failures and private concessionaire level,35 often where services are provided by public
withdrawals from the drinking water and sanitation corporations or by operators under concession
sector occurred during macroeconomic crises in contracts. Other provinces, especially those that
the early 2000s. First, a 2001 economic crisis depend primarily on municipal or cooperative
in Argentina triggered some private contract delivery models, do not have an established
terminations by exposing a series of exogenous regulator. Regulators implement their functions
built-in constraints to effective service: poverty, in accordance with the legal frameworks defined
political instability, weak regulatory bodies, weak by the provincial governments, and there is no
institutional capacity, macroeconomic instability, national law or legal framework that describes
lack of experience in procurement, priority changes common standards of service quality or tariff
in the international community, and others. setting. Only the Argentine Food Code establishes
This led to a decision to freeze tariffs in 2002, water quality parameters.
putting greater pressure on operators’ financial
sustainability. Argentina was sued in international Regulators often have certain levels of financial
investment tribunals such as ICSID, for breach of independence, but they lack managerial autonomy,
its obligations.33 given their reliance on executive power. Boards of
regulatory agencies are proposed, in general, by the
Different service delivery models emerged across provincial executive and endorsed by the provincial
provinces during the renationalization phase. legislature. Outdated regulatory frameworks and
Currently, Argentina has more than 1,800 service the diffuse contractual relationships, in several
providers, mostly public companies, municipal provinces, limit or blur the functions of the
services, or cooperatives. The multiplicity of providers regulatory entities that should be aimed at ensuring
affects the economies of scale of the sector as it the control of contractual compliance by the parties
tends to increase transaction costs.34 Four utilities and being an effective bridge with users. Their
are privately managed (in the main cities of the independence is not always guaranteed as they are
Cordoba, Corrientes, Misiones, and Santiago del only partially funded with a percentage of the tariffs
Estero provinces). The government of Argentina (the rest being public funds from treasury), and the
rescinded the Aguas Argentinas concession contract directors of regulatory agencies are appointed by
for the AMBA in 2006, establishing AySA (Agua y the executive branch. Political interference through
Saneamientos Argentinos) as a public corporation regulatory capture jeopardizes sustainable service
in which the government holds a 90 percent stake delivery, since it prioritizes political objectives over
and workers hold the remaining 10 percent. Several efficiency and the provider meeting its performance
provinces implemented this model of state-owned objectives.
service provision.
Many regulatory frameworks, created mainly
Policy, Regulatory, and during the privatization phase in the 1990s, do
Institutional Framework not fit today’s public service scenario. Private
operator incentives in the 1990s emphasized
The current policy, institutional, and regulatory investment and full cost recovery, different from
framework does not adequately address or mitigate the incentives of today’s public operators. The
the key water supply and sanitation service challenges. 1990s frameworks did not, for instance, incentivize
The 2016 creation of the first national water supply connecting networks to poor peri-urban areas,
and sanitation plan, some revised regulatory which urgently need service. Other features
frameworks, and the definition of important policy reinforced perverse economic incentives, such as
instruments such as the Results Management Plans installing meters in some provinces but not using
(Plan de Gestion por Resultados, PGRs) are steps them because regulations had not been updated to
toward an enabling environment for sustainable set volume-based tariffs—so flat tariffs continued,
service delivery. Yet, services continue to face and high consumption and operating costs went
planning, governance, capacity, and regulation unaddressed. And financial penalties on providers
problems that obstruct efficiently reaching SDG designed for private utilities are harmless to state-
targets 6.1 and 6.2. owned companies.
 70 ARGENTINA: VALUING WATER

Institutional Framework definition levels or technical inconsistencies that can

affect the construction and operation processes.
The institutional framework relies on myriad
decentralized national, provincial, and municipal
water and sanitation institutions. Argentina’s complex
Policy Framework
institutional framework has few instruments that Argentina has established ambitious short-term
facilitate intergovernmental coordination. Fragmented targets of 100 percent access to water and 75 percent
institutional roles and responsibilities often constrain access to sewerage service in urban areas through
effective governance (Biermann et al. 2009; Van de the National Water and Sanitation Plan. The plan’s
Graaf 2013). Besides atomizing services, fragmentation coherent vision aligns with the 2030 SDG agenda. It
leads to competition between institutions, overlapping would provide water access to 8.2 million people and
or unclear roles and responsibilities, and incoherence sewerage access to 8.9 million. It requires estimated
between the national and provincial regulatory investments of US$22 billion (US$8 billion for water
frameworks (Wollmann 2008). For example, and US$14 billion for sanitation), to come from
water service delivery in the AMBA falls under the national, provincial, and municipal governments, as
responsibility of the national government, as well as well as from service providers. In an important policy
the CABA and the province of Buenos Aires. Although change, the plan focuses on sustainably improving
the national government can establish a national water service quality and efficiency. Its key objectives and
policy or strategy, even if the policy is applicable to aspirations include:
the metropolitan area, implementation requires the
• Establishing co-financing schemes between the
concurrence and backing of the provinces (OECD 2019). national government, provinces, and municipalities
Vertical coordination between the national government to develop subnational ownership and accountability.
and the provinces and horizontal coordination The schemes will increase the resources available
for reforms and investments by requiring that
between provincial institutions both face challenges.
subnational resources finance 33 percent of
The challenges produce incoherent implementation infrastructure investment, with the national
across provinces. This problem is rooted in the government to finance the remaining 66 percent.
lack of political, administrative, and organizational
incentives in the broader political economy. Provincial • Strengthening utility management by providing
technical assistance to improve service providers’
governors, incentivized to pursue their own political
operational, commercial, and financial performance.
goals, may have little drive to cooperate or to foster
provincial–federal cooperation. So, across provinces, • Boosting financial sustainability for service providers.
Argentina’s decentralization has increasingly produced Tariff structures are to be revised to increase
heterogeneous outcomes. And the provinces are revenues. Subsidy schemes are to better target
the poor and vulnerable groups. Efficiency gains,
paradoxically responsible for providing services, while
monitored and prodded through benchmarking,
national government institutions undertake policy and will reduce operating costs by reducing losses,
investment planning and execute drinking water and optimizing energy use, and introducing preventive
sanitation capital investments (Acuña et al. 2019). maintenance.
Establishing DNAPyS in 2016 for investment planning • Leveraging private finance and expertise. The
and sector coordination was a milestone in filling the National Water and Sanitation Plan emphasizes
vertical coordination gap.36 DNAPyS has the potential public-private partnerships (PPPs) for meeting
to minimize the obstacles in safely managing financing needs and improving service quality.
drinking water and sanitation service delivery. It has It promotes performance-based contracts tying
payments to firms to satisfactory results.
undertaken appropriate initiatives: planning to train
regulators, developing a national information system, The plan lacks definite criteria for selecting and
developing a national wastewater treatment plan, and prioritizing investments. It also does not define strategies
designing a national epidemiological study on arsenic. to provide service in the most challenging areas, such as
But the relatively new DNAPyS lacks the technical staff poor peri-urban neighborhoods. Still mostly urban, the
and capacities to fully carry out its functions, while its plan’s strategy to provide service in rural areas is less
efforts do not have an accountability mechanism to clear. Its attention to institutional reform and capacity
ensure the implementation of national policies (Acuña building needs to increase. It lacks an accountability and
et al. 2019).Last, performance issues related to service monitoring mechanism to ensure implementation, and
provision explained in the next chapter are also rooted it lacks financial incentives to improve efficiency and
in existing low technical capacities in service providers. enhance performance. In the context of the macro fiscal
These are reflected, for instance, in the poor quality crisis, the plan proved overambitious and experienced a
of engineering designs and projects, that have low low level of execution.37
 71

To support improved planning by utilities, the national not know their real water production and consumption,
government has promoted standardizing Results complicating their strategies to reduce losses and
Management Plans (PGRs). The PGRs are a key policy increasing operating costs. So, instead, increasing
instrument for providers to plan rationally and monitor operational costs are either passed on to customers
performance to drive a necessary utility turnaround through tariffs or, more commonly, subsidized by the
process. Currently, 19 main provincial utilities have provincial government. Such increases, coupled with
completed or are preparing PGRs. the politically driven character of tariff setting in many
parts of Argentina, lead to the low-cost recovery of
Each PGR sets a performance improvement path by
Argentine water utilities (see chapter 5).
defining key performance indicators for the utility.
It defines activities to achieve the set goals (World The National Information System is a key first step in
Bank 2017a). And all PGRs define a path to reduce monitoring and improving performance. The DNAPyS
non-revenue-producing water use and thus operating has built a national system of monitoring indicators
costs and subsequent subsidies, so the utility can that allows the storage and management of data on
increasingly rely on tariff revenues. the drinking water and sanitation sector’s performance.
Data include service providers’ operational, technical,
Yet, PGRs lack an accountability mechanism to ensure
and financial performance. Such a system, used in
utilities reach their goals. Developed by the utilities,
most upper-middle-income countries, is a prerequisite
the PGRs are signed by the utility managers and
for setting national baselines and improvement targets
provincial regulators, approved by the provincial water
in a coherent sector policy (Acuña et al. 2019).
authority, and reported to the DNAPyS. The process
creates a social compact around a common vision A lack of transparency restricts information flow
for providing drinking water and sanitation service at and thus constrains citizen engagement. In general,
the utility level—a great achievement for the sector. provincial utilities commonly do not publish their
It also produces a sense of ownership by the utility financial statements. The lack of data and information
management. Yet, beyond these official approvals, weakens decision making at all levels and hinders
PGRs have no specific mechanisms or incentives the providers’ own management. And it weakens the
to ensure that the actions they determine are utilities’ sense of responsibility to citizens.
implemented.
The failure to coordinate large utility plans with urban
The common flat/non-metered tariff regime creates planning instruments creates challenges in reducing
little incentive to improve operational efficiency or service coverage gaps in an efficient manner.38 For
rationalize water consumption. The prevalent fixed instance, numerous social housing projects have
tariff regimes (World Bank 2017b; Seillant 2019) been promoted in the locations of Greater Buenos
linked to most operators’ lack of metering are central Aires without formal39 water and sanitation services
to hiding operational inefficiency, since regulators (figure 4.4). So, the cost of connecting those who
cannot manage what is not measured. Providers do most need service would be higher than if these

Figure 4.4 Coverage of Water and Sewerage Services in Greater Buenos Aires, and Location of Social
Housing Projects
a. Coverage of services b. Location of social housing projects

Formal water supply Formal sewerage service

coverage (AySA) coverage (AySA)
Social housing Social housing

Source: Based on data from Muzzini et al. (2016) and the Secretary of Territorial Planning 2018 (http://sig.planificacion.gob.ar).
 72 ARGENTINA: VALUING WATER

projects were in locations with existing or planned Hydropower and Multipurpose

formal coverage.40 This could be rooted in the lack Storage Infrastructure
of coordination between institutions responsible for
housing and water and sanitation services planning or Storage for irrigation, water supply, hydropower
by the lack of clarity or level of enforcement derived generation, or even flood mitigation adds a total
from the existing legislation. capacity of approximately 3,000 cubic meters per
capita in Argentina.42 Large hydroelectric infrastructure
is geographically dispersed across the national territory
Infrastructure Stock (map 4.2). Hydroelectric capacity varies, with large
and Financing capacities in the Negro–Limay–Neuquén and the
Paraná–Paraguay–Uruguay system, but less in other
Many challenges and opportunities identified in the
macrobasins, such as the Serrano, Pampean, and
water sector performance diagnostics result from
Buenos Aires systems—the last for obvious orographic
financing and infrastructure gaps. To address the gaps
reasons.
in times of macroeconomic instability is daunting. And
other structural factors that also shape infrastructure It is important to relate reservoir capacity to the
delivery in Argentina relate to the regulatory, hydrological balance at the macrobasin level. This
institutional, and regulatory challenges mentioned in study examines hydrological balances on a monthly
the previous sections. As such, there is, in general, a basis, to calculate deficits over several consecutive
lack of strategic planning for infrastructure, with no months and evaluate whether reservoir capacity is
strong evidence of finding social, economic, financial, large enough to capture surpluses in wet months,
or environmental criteria to prioritize investments or at least to stabilize balances as an intermediate
(OECD 2019). The impaired coordination between step.43 Reservoir capacity seems tight, especially
administrations for the water sector and low capacities considering climate change effects, though the
found in many provinces are coupled with economic analysis did not consider groundwater or snow
inefficiencies in infrastructure delivery explained later resources. As for demand, figure 3.9 in chapter 3
in this report. For example, public funds used for shows annual surface deficits of 1–2 cubic kilometers
the operation and maintenance of water supply and in the Colorado, Mar Chiquita, Pampean, and Serrano
sanitation utilities could be more efficiently used to systems. The Pampeano and Serrano systems’ small
expand infrastructure and close coverage gaps instead.41 reservoir capacities give them little capacity to store

Map 4.2 Main Dams and Macrobasin Reservoir Capacity, Installed Power, and Average Production
a. Main dams b. Capacity, installed power, and average production
Mar Chiquita
Dam (Hm3) 1,800
Power (MW) 150
Production (GWH) 520

Serrano
Dam (Hm3) 325
Power (MW) 18 Paraná–Paraguay–Uruguay
Production (GWH) 52 Dam (Hm3) 31,000
Colorado Power (MW) 6,300
Production (GWH) 32,500
Dam (Hm3) 2,960
Power (MW) 1,080
Production (GWH) 3,290

Negro-Limay-Neuquén Pampean System

Dam (Hm3) 79,500 Dam (Hm3) 225

Power (MW) 4,550 Power (MW) 5
Production (GWH) 13,750 Production (GWH) 0
Patagonian Rivers
Pacific System
Dam (Hm3) 1,280
Dam (Hm3) 5,380 Power (MW) 60
Power (MW) 475 Production (GWH) 160
Production (GWH) 2,740

Source: National Geographic Institute dataset and original estimates based on SSRH (2010–13); IE-ANI (2016); and Manilow and Goyenechea (2015).
Note: Left: location of main dams; Right: reservoir capacity, installed power, and average production of the macrobasins.
 73

water in surplus months and thus meet demand in and significant threats from climate change. Uses
deficit months.44 would include drinking water supply, flood control,
irrigation, recreation, and hydroelectric production.
Hydroelectric production depends on the volume of
Three of these dams are also in the energy scenario46
water available, which is likely to decrease under
developed by the Ministry of Energy, which aims to
climate change (see map 3.8, in chapter 3). With
add 3 gigawatts of hydropower generation by 2030
less water, the generation capacity of hydroelectric
(map 4.3). Opportunities to reconvert single-use dams
plants will fall. This is already happening in some
to multipurpose dams have also been identified.47
recent projects, such as Los Caracoles and Punta
Negra in San Juan province, which have not produced So, the construction of dams may be feasible case
as much power as expected.45 But plant-by-plant by case. Adding storage capacity just for hydropower
analysis is needed to project power production in light generation at scale seems generally challenging given
of these multipurpose dams’ need also to maintain the large cost of these projects and the expected
environmental flows. Such close analysis can also decrease in water availability across basins.48 But
take into account such factors as the hours of turbine multipurpose storage projects are needed to increase
operation and the relative prices of other energy regulatory capacity in times of increasing pressure on
sources to estimate future economic benefits. the resource.
Ongoing plans propose increasing hydropower
Hydrometeorological Infrastructure
capacity. The National Water Plan identified five major
multipurpose dams, worth US$10 billion. Three of them Argentina has about 1,000 meteorological stations, 500
are in arid or semi-arid areas with high water demand hydrological stations, and 700 operational pluviometers

Map 4.3 Multipurpose Projects and New Hydroelectric Plants Identified in the 2016 National Water Plan
and Included in the Energy Scenario by 2030

Potrero del Clavillo Yacyreta Extension

Tambolar

Los Blancos Hydroelectric incorporation Year

MW
Portezuelo del viento El Tambolar 70 2022
Aña Cua 270 2022
Yacyreta Extension 465 2023
Chihuido Condor Cliff 950 2024
La Barrancosa 360 2025
Chihuido I 637 2026
Portezuelo del Viento 216 2028

Condor Cliff - La Barrancosa

Source: MINEM 2017; and SIPH 2017.

Note: Blue: dams identified by the National Water Plan. Red: dams included in the energy scenario and described in the table. Yellow: dams in the
National Water Plan and the energy scenario.
 74 ARGENTINA: VALUING WATER

of varying type and quality. As the main national In general, basins with flow regulation infrastructure
weather institution, the National Meteorological Service and multipurpose (irrigation or hydroelectric power)
(SMN) has more than 120 meteorological stations storage infrastructure have the most stations. Basins
throughout Argentina. The SMN keeps historical records with very few or no stations are mostly small
with series going back more than 100 years for 42 endorheic basins or are in areas with low population
stations.49 Other national institutions, such as the density (such as Patagonia) (map 4.4) (Brieva 2018).
National Institute of Agricultural Technology (INTA),
For groundwater, provinces have their own networks
focusing on agrometeorology, and the National Water
of varying quality. Nationally, the Secretariat of
Institute (INA), focusing on hydrology, have their
Infrastructure and Water Policy is identifying actors
own networks as well.50 The National Hydrological
that generate hydrogeological information to promote
Network (RHN) currently has 420 points measuring and
their integration and plan its own complementary
collecting hydrological and meteorological data.
hydrogeological network.
In addition, provinces and basins have created
The main nivometeorological stations are in productive
their own networks as part of exercising their
zones in the western region, since they are key for
water authority. Provincial networks have a
information on the behavior of water resources under
meteorological network covering the jurisdiction
snow. Mendoza province has 11 stations coinciding
and other subprovincial networks addressing various
with the basins of its main rivers plus 2 installed in
hydrometeorological themes (for example, at the
recent years, while San Juan has 5 remote stations plus
municipality, university, institute, or agency level).
2 installed in recent years. And the Argentine Institute
And there are networks at the basin or even the
of Nivology, Glaciology, and Environmental Sciences
project level (for hydropower generation, for instance).
is installing 2 high-altitude stations to study snow,
The national government has begun an integrated
glaciers, water resources, and climatic variation in the
national hydrometeorological information system—the
region.
Integrated Hydrological Database, which currently
has records from 747 stations (539 of them active) of The National Meteorological Radar Network
national and provincial institutions.51 (SINARAME) includes 18 radar stations, 11 of which

Map 4.4 Active Stations of the National Hydrological Network and the National Meteorology Service
(Left), and the National Meteorological Radar Network (Right)

Argentine Meteorological
Radar series coverage
Other radar coverage

Hydrometeorological
stations
0
1–3
4–10
>10

Source: Based on RHN and SMN data; radar network from SIPH (2019).
 75

belong to the national government.52 They cover about challenges related to a deficiency in the processes
60 percent of the country (map 4.4). This network of data capture, storage, processing, and validation.
provides hydrometeorological observation in real SIPH is also in the process of identifying actors that
time, allowing a more efficient risk management generate hydrogeological information to promote the
through the development of an early warning service, integration and planning of its own hydrogeological
and the provision and monitoring of environmental network.
contingencies. The processing of the information Expanding and upgrading the national
captured by the radars is carried out by the SMN, the hydrometeorological network will cost about US$700
official forecasting agency responsible for delivering million.53 Such a program cannot exist without the
short-term meteorological alerts. This is essential necessary budgetary arrangements for adequate
to safeguard the population, livestock agricultural operation and maintenance to ensure the sustainability
production, the regulation of dams, and the safety of of the infrastructure.
sea and air navigation.
The Storm Warning System (SAT) for CABA is equipped Flood Mitigation Infrastructure
with a network of 34 automatic meteorological
stations, a radar, a hydrometeorological forecast No systematic information exists at the national level
model, and a central station for receiving, processing on the infrastructure needed to mitigate floods.54
and distributing data across the CABA surveillance This infrastructure includes coastal defense systems
system. In addition, these meteorological alerts are and embankments, like the ones built during the
transmitted and shared with other service providers 90s and 00s along the Parana River, essential for the
(of emergency medical care, or among firefighters and protection of riverine populations. It also includes
police officers) to articulate the necessary measures to drainage and collection systems such as drains,
prepare for emergency situations and mitigate the risk canals, and dredges; and flood retention or regulation
of flooding in CABA and part of the AMBA. infrastructure. Also, there are only a few basin-
level strategic assessments, based on hydrological
On the other hand, the distribution of wells with
analyses, that relate to such infrastructure needs.
phreatic measurements is also heterogeneous
Some priority investments are identified at the
throughout the country, where the majority are located
provincial level, and additional studies of those needs
in the systems of the Paraná River, the Pampeano
(financed by the national government) are being
system, and the Rio de la Plata and Buenos Aires
prepared in several provinces.
systems. In turn, the largest number of wells are
located where there is little or no surface drainage: The cost of needed flood mitigation infrastructure
that is, in San Luis, Córdoba, La Pampa, and Buenos identified by only two of the most affected provinces
Aires (Giorgis, Brieva, and Damiano 2017). amounts to more than US$3.4 billion.55 In Buenos Aires
province alone, the provincial water plan considers
Argentina’s national hydrometeorological infrastructure
needs of more than US$2.4 billion in investments, of
is generally still insufficient for properly managing the
which 80 percent is for the peri-urban AMBA. The vast
resource. The consequences of these deficiencies are
majority of the proposed interventions are based on
discussed in chapter 5.
traditional “gray” infrastructure, predominantly storm
At the national level, the SIPH is in the process of drainage networks and concrete defenses against
upgrading the National Water Information System storm overflows. Argentina has yet to explore the
(SNIH). The system integrates information on all three concept of green infrastructure, which uses ecosystems,
water types—surface (RHN), atmospheric (SINARAME), soil permeability, and the natural retention of runoff
and groundwater—and strengthens cooperation for infiltration or evapotranspiration, thus reducing
between provinces to promote regional understanding surface flows.
(SIPH 2019). The plan aims for RHN to install new
surface stations and modernize existing ones, and
Irrigation Infrastructure
to formulate criteria for placing future radar sites for
areas not yet covered. The plan’s final objective is to Argentina’s arid and semiarid zones have the largest
have 450 telemetry stations installed and to present a irrigated area, and more than 5,000 kilometers of
combined visualization of all the stations on an official primary and secondary canals and 27 reservoirs holding
website. The automatic meteorological stations of about 100 million cubic meters dedicated to irrigation.
the radar network, 130 water quality measurement In areas near the La Plata Basin, high water availability
points, and all the networks of the governments implies an almost unlimited potential for irrigation,
and public institutions will be included to provide conditioned only by extraction and delivery costs.
unified information about the whole country. Yet, Catamarca, Córdoba, La Rioja, San Juan, San Luis, areas
the hydrometeorological infrastructure still presents of Mendoza, and particularly Buenos Aires provinces
 76 ARGENTINA: VALUING WATER

use groundwater for irrigation (FAO and PROSAP 2015). • Increase efficiency by 58 percent58 to expand irrigation
Some of them also have reservoirs that allow them to by 560,000 hectares (figure 4.5). The increase in
store and use surface water. water saved through increased efficiency would
compensate the greater agriculture demand and
A 2015 Food and Agriculture Organization and the decrease expected due to climate change, while
Provincial Agricultural Services Program study keeping resources for other uses, consuming no more
proposed investments in upgrading or expanding water than is being extracted today. An estimated
irrigation to increase agricultural resilience. That investment of US$8.1 billion would be needed. 59
study, factoring in climate change projections and
• Add complementary irrigation for rainfed crops
their impacts on water availability, recommends the across 4.7 million hectares. Like the other
following:56 interventions, these are proposed in systems with
• Increase irrigation efficiency from the current 34 enough water surplus to support extraction either
percent to 40 percent in the 2.1 million areas from aquifers or from the large rivers in the La Plata
irrigated today to compensate for the future Basin. The viability of this expansion was analyzed
decrease in water availability due to climate by estimating the internal rate of return of the
change. An investment of about US$2 billion investment, considering different water sources
would be needed—US$1.436 billion for collective (map 4.5). The investment needed would be
infrastructure and US$569 million for intraplot US$16.5 billion.
technology. These I&D investments aim at
optimizing the use of water, to mitigate the impacts The total cost of these interventions (map 4.6)
of a greater future agriculture demand under is estimated at US$26.6 billion (figure 4.6).
projected shortage events. 57 (See chapter 6 for a detailed cost-benefit analysis.)

Figure 4.5 Actual and Target Irrigation Efficiency, by Province

a. Actual efficiency levels
100

80

60
Percent

40

20

0
s

ca

ut

os

pa

za

lta

an

is

uz

Fe

ro

án
re

te

ju
ob

os

oj
ac

gr
ue

Lu
ub

ste
do
ar

Rí

Cr
m

Ju

m
Sa
Ju
en
Ai

Ri

ta
Ne
rm
Ch

rd

uq
m

n
Pa
Ch

cu
en
tre

n
n

lE
rri

La

n
os

Có

Sa

Sa
ta

Fo

Sa
Ne

Tu
o

Sa
M

de
En
Co

La
en

Rí
Ca
Bu

o
iag
nt
Sa

Collective systems Intra plot Actual global efficiency

b. Target efficiency levels

70
65
60
55
50
Percent

45
40
35
30
25
20
s

ca

ut

Co ba

Fo s

uy

pa

Ne a

lta

is

Fe

ro

án
ire

te

u
os

oj

oz
ac

gr
ue

Lu
ub

ste
ar

Rí

Cr
j
o

Ju

m
Sa
Ju
en

Ri

ta
Ne
rm

d
Ch
A

rd

uq
m

n
Pa
Ch

cu
en
tre

n
n

lE
rri

La

n
os

Có

Sa

Sa
ta

Sa

Tu
o

Sa
M

de
En

La
en

Rí
Ca
Bu

o
iag
nt
Sa

Increase efficiency + the expansion of existing irrigation areas Increase efficiency Actual global efficiency

Source: FAO and PROSAP 2015.

 77

Map 4.5 Internal Rates of Return for Complementary Irrigation Expansion

Source: FAO and PROSAP 2015.

Note: From left to right, irrigation alternatives include groundwater use, surface water by gravity, surface water by pumping and canal, and
surface water with pumping and piping. Green: viable internal rates of return of more than 18 percent; yellow: medium viability zones with
internal rates of return between 12 and 18 percent; red: no viability.

Map 4.6 Growth of Area to Be Cultivated due to Increased Irrigation, by Province and Region
a. By province b. By region

50% 55% 2981%

69%
49%
33% 2326%
1495%
35%
875%

27%
14%
1222%
25%
1528%
360%
17%
38%
11%
18%

50%
28% 48%

NEA
27%
Patagonian
50%
Pampean
NOA
Cuyo
64%

Source: Data from FAO and PROSAP (2015).

Note: Growth of actual irrigated area due to increasing efficiency by 58 percent and adding complementary irrigation to 4.7 million rainfed
hectares.
 78 ARGENTINA: VALUING WATER

The PROSAP also includes a plan to irrigate an Hidrovía

additional 915,000 hectares in basins that have
sufficient water surplus even under climate change The Paraguay–Paraná–Río de la Plata waterway
scenarios. Only a few specific subprojects are in (Hidrovía) is maintained by dredging in critical passages,
macrosystems with overall net deficits, where small- the amount depending mostly on how much sediment
scale analysis shows enough water in microbasin the river and its tributaries, particularly the Bermejo
storage to satisfy the new demand. However, specific River, deposit. In the roughly 800 kilometers from
environmental impact assessment studies in the Santa Fe to the Atlantic Ocean, frequent dredging
context of the basin, and particularly of downstream and beaconing to maintain navigable conditions are
impacts, need to be conducted in each case. The conducted through a concession contract due to end
investment needed for these new irrigated areas is an in 2021. In the rest of the waterway—roughly 2,900
estimated US$7.4 billion (map 4.7 and figure 4.6). kilometers north from Santa Fe—occasional and sporadic

Map 4.7 Projects Identified by the National Irrigation Plan for New Irrigated Areas

Source: Government of Argentina (n.d.).

 79

Figure 4.6 Investments Needed to Increase Irrigation, by Province

7.000 2.000.000

1.800.000
6.000
1.600.000

5.000 1.400.000

4.027 1.200.000
Million US$

4.000

Hectares
1.000.000
6.112
3.000
800.000

2.000 600.000
2.476 3.151
2.974 1.677 400.000
32
1.000 782
112
944 710 200.000
173 160 1.043 851 645 1.206 190 744
463 44 106 453 524 15 368
66 133 188 118 47 75 302 155 97
0 0
Ca ires

ca

ut

Co ba

En tes

Fo s

pa

za

Ne es
Rí uen

lta

Sa n

nt s
uz

de Fe

Tu ro

de án

o
o
o

i
u
os

oj
ac

eg
a

Lu
gr
ub

ste
ar

do
Rí

on

Cr
j
o

Ju

m
Sa
Ju
en

Ri

a
rm
Ch
A

rd

uq

Fu
Ne
m

iag ant
n
Pa
Ch

cu
en
tre

isi

a
n

lE
rri

La
os

Co
ta

Sa
M
M

S
o
La
en

Sa

rra
Bu

Tie
nt
Sa
Investment existing areas Complementary irrigation investment superficie potencial
Investment new areas Potential area (hectares)

Source: FAO and PROSAP 2015.

work takes place according to urgent need and the The new Hidrovía concession is expected to
local economic resources available. According to the be tendered in 2021, and depth modifications
Binational Commission for the Development of the are being studied. Options are summarized in
Upper Basin of the Bermejo River, about 23 million tons table 4.1 and map 4.8. Two increase the depth in
of sediment need to be removed each year to maintain the section upstream from Santa Fe to Timbues,
the navigability of the La Plata waterway channels and three increase the depth from Timbues to
(COBINABE 2010). More than 70 percent of the solid Buenos Aires. All four increase the depth in the
load of the Paraná River at the Corrientes station comes downstream La Plata estuary, which depends
from suspended solids from the Bermejo River. This load less on river flows than other sections and more
changes the structure and functioning of ecosystems, on tidal movement since it is nearer to the sea.
limits the capacity of waterways and ports, and Additionally, deepening the Magdalena Channel is
modifies the quality of their waters, causing significant being considered as an alternative to an outlet to
maintenance costs. Although this erosion is natural, soil the ocean.60
management in the upper basin helps control it.

Table 4.1 Options for Deepening the Hidrovía

Section Alternative depths

Actual depth
1 2 3 4
Santa Fe–Timbues (feet) 25 25 28 25 27
Timbues–Buenos Aires (feet) 34 34 36 36 38
Buenos Aires–ocean (feet) 34 36 36 38 38
Estimated investment (US$ billions) 250 430 - -
Source: Ministry of Transport.61
Note: The numbering of alternatives is by the World Bank team. The estimated investments incorporate the expense of increasing depths and the
corresponding maintenance costs corresponding to the existing depths while dredging the next phase (1 year for alternative 1, and 2 years for
alternative 2). Estimated investment for alternatives 3 and 4 was not available.
 80 ARGENTINA: VALUING WATER

Map 4.8 Improving the Hidrovía

Deepening Widening

25 feet Map layers

Vias Navegables
Km 117 a 126
Canal Tramos con Prohibición de Cruce
Timbúes Pasos
Intermedio
Canal Hidrovía
Obra
0 3.3 6.7 10
Km 146,5 a 158,5
Miles

36
feet 34 feet
Canal Punta
Km 182,7 a 182,5
34 feet Indio
Km 194 a 195,5
(CARP)

38 feet
*This scenario does not imply
a decision over the tendering
process

Source: Ministry of Transport.

Financing Water Infrastructure obligations were transferred to the provinces

(Excluding Water Supply and Sanitation) through subsidiary agreements based on the
capacity of each individual province to service debt.
During 2017, the national and provincial Paying for these loans (interest and capital) was
governments spent about US$1.2 billion (0.19 percent passed partially to individual project beneficiaries
of GDP) on water infrastructure, not including drinking in some provinces. In this process, the national
water and sanitation services.62 Provincial budgets government was key in negotiating loans and
accounted for 84 percent of such spending, which identifying provinces and beneficiaries that would
represents about 1 percent of the average provincial finally repay them. Recently, this important role of
public spending. Buenos Aires province and the CABA the national government in financing infrastructure,
made the greatest contributions, with 38 and 17 which lasted until the end of the 20th century, was
percent respectively. Some Buenos Aires investments eroded by the economic situation and changing
finance strategic, long-term projects such as flood national priorities. Thus, Argentina’s national
mitigation infrastructure in the Salado River Basin, government does not have the kind of financial
which is a strategic resource for Argentina’s agriculture leverage seen in several other federal countries,
and livestock.63 such as Australia.
The average national government spending on water Hidrovía SA is the concessionaire in charge of
management infrastructure between 2014 and 2018 maintaining the dredging and beaconing of the Paraná–
was US$313 million a year. Of that, 26 percent was La Plata river trunk waterway. At first, its income was
executed by federal institutions and 76 percent made up of user tariffs and state contributions. The
via the Water Infrastructure Fund, financed with state contributions were eliminated as of the 2009
resources coming from a percentage of the fuel tax.64 Agreement Act. A vessel’s tariff for beaconing and
Investments in the Matanza Riachuelo Basin through dredging depends on the size of the vessel, adjusted
the Matanza Riachuelo Basin Authority and investments for the reference draft (similar to the depth of the
for agricultural risk management are among the most natural channel), and the usable draft of the ship or the
significant.65 channel, whichever is less.67
In the past 30 years, the national government has Decision-making on infrastructure investment
borrowed heavily from IFIs to invest in modernizing plans generally lacks a transparent mechanism for
irrigation infrastructure. For instance, the Provincial prioritizing projects that takes into account higher-
Agricultural Services Program has invested US$640 level development objectives. Specific infrastructure
million since 2005 in irrigation and drainage systems does not necessarily require being linked to a basin
for 800,000 hectares.66 IFI funding and financial plan in order to be financed. This suggests that the
 81

new infrastructure may not be well integrated in Of the population without sewerage, 11 percent is
other territorial planning processes (Calderon et al. in two departments: La Matanza in the AMBA and
2020), based on broad analyses of its upstream Córdoba city. In the AMBA, which has more than 9
and downstream impacts on water or other million inhabitants without sewerage, the problem
sectors, or its priority in terms of economic, social, is serious—and exacerbated by the high population
or environmental outcomes expected from other density and the social, economic, and environmental
interventions in the basin (OECD 2019). However, impacts of the lack of access. The rural population
for interjurisdictional basins, and federal funding, without sanitation is much more dispersed and is in the
consensus at the provincial level is required. same areas as those without piped water.
Solid financing strategies are lacking, a situation
More than double the current investment is required to
worsened by the deteriorating macroeconomic
reach SDG targets 6.1 (universal access to clean water)
situation.
and 6.2 (universal access to sanitation). Investment
today is about US$1.5 billion a year.70 Closing the
Infrastructure and Financing Gap for gap by 2030 would require investing US$3.6 billion
a year.71 Complying with the goals of the National
Water and Sanitation Services
Water and Sanitation Plan, which establishes a goal of
In 2018, piped water coverage was estimated at 100 percent access for water supply and 75 percent
83.3 percent and sewerage coverage at 52.8 percent for sewerage,72 would imply an annual investment of
(table 4.2, figure 4.7).68 US$2.1 billion during the period 2021–30. An additional
investment of US$1.3 billion a year is required
Of the population without piped water, 50 percent lives
for renovation and rehabilitation of the existing
in 11 departments in the AMBA.69 The rural population
infrastructure.73
without coverage is more dispersed. The departments
in which most inhabitants lack coverage are in Public spending on water and sanitation services
Córdoba, Mendoza, and Santa Fe provinces and the has been largely determined by the country’s fiscal
northern provinces (map 4.9). situation, rather than by the sector’s needs. Total and

Table 4.2 Access to Piped Water and Sewerage Services

Services Urban (90 percent or 40.4 Rural (10 percent or 4.1 Total
million people) million people)
Water coverage 86.3 percent (34.9 million) 52.8 percent (2.1 million) 83.3 percent (37.0 million)
Sewerage coverage 57.3 percent (23.1 million) 8.5 percent (345,000) 52.8 percent (23.5 million)
Source: National Institute of Statistics and Census data and projections.

Figure 4.7 Water and Sanitation Coverage, 2018, by Province

100% 40,000
90% 35,000
Us$ per cápita 2004

80%
30,000
70%
60% 25,000
50% 20,000
40% 15,000
30%
10,000
20%
10% 5,000
0% 0
rri a
is ts
cu es
Ch án
o
lE y

Sa Sal o
n ta
En R n
Bu tre ioja
o os

M eg s
Ca end ro
m a
rd a
n a
La nta is
Pa Fe
Tie N hu a
De qué t
lF n
Sa C o
a a
uz
rra eu bu
o re
De Juju
Co mos

ta oz
Có arc
Sa ob

nt ab
ac

g
La ua

Sa Lu
M en

ste

en Rí
Tu ion

Cr
m
m

ue
Rí s Ai
J

N
r

C
Fo

o
Sg

Water coverage Sewer coverage Provincial GDP per capita

Source: World Bank team.

Note: Provinces are listed in order of gross domestic product per capita. CABA = Ciudad Autónoma de Buenos Aires (Autonomous City of Buenos
Aires).
 82 ARGENTINA: VALUING WATER

Map 4.9 Piped Water and Sanitation Coverage and Population Density in Argentina by Department and in
the AMBA

Water coverage 2018 Sewerage coverage 2018 Population density

0.0–0.1 0.0–0.1 0–1
0.1–0.2 0.1–0.2 1–2
0.2–0.3 0.2–0.3 2–3
0.3–0.4 0.3–0.4 3–6
0.4–0.5 0.4–0.5 6–9
0.5–0.6 0.5–0.6 9–13
0.6–0.7 0.6–0.7 13–23
0.7–0.8 0.7–0.8 23–50
0.8–0.9 0.8–0.9 50–666
0.9–1.0 0.9–1.0 666–30,198

Note: Left: piped water; center: sanitation; right: population density (inhabitants per square kilometer). Top: Argentina; bottom: AMBA.

national spending reached a noteworthy minimum Although a fall was registered in 2018/19, during
in 2001 within the context of the economic crises 2020 it has grown strongly and the draft national
that swept over Argentina. A recovery began in 2006 budget maintains the level of spending for 2021
with nationalizing the company providing water (figure 4.8). National funding goes particularly to
and sewerage in the AMBA, Agua y Saneamientos AySA (67 percent), and the rest to the provinces.
Argentinos Sociedad Anónima (AySA), and sharply Taking all three government levels together—
increasing the national government’s contribution federal, provincial, and municipal—about 73 percent
of funds to it. These government contributions first is for investments, and the rest for operation
focused on AySA investments and capital expenditures, and maintenance (27 percent, or about US$400
and then provided subsidies for AySA’s operation and million).74 However, as a consequence of the rate
maintenance expenses. They have fallen again in freeze due to COVID-19, and the high levels of
recent years with the devaluation of the peso and the inflation in 2019 and 2020, recent utility assessments
fiscal crisis (Acuña et al. 2019). (World Bank 2021) indicate that the subsidies
have covered a larger percentage of operation and
The sector is heavily subsidized, both for investment
maintenance costs.
and for operation and maintenance. It is predominantly
financed by the national treasury and external credit. Infrastructure planning for water and sanitation is
The national government’s share of all government mainly challenged by the unpredictability of federal
funding in the sector has increased with time. financing due to the lack of clear criteria for allocating
 83

Figure 4.8 Government Water and Sanitation Spending, 2004–18

1.00

Government Spending in Water

and Sanitation as a % of GDP
0.80

0.60

0.40

0.20

0
4
05

06

07

08

09

10

11

12

13

14

15

16

17

*
18

19

20

21
0
20

20

20

20

20

20

20

20

20

20

20

20

20

20
20

20

20

20
Percent of GDP
Nation Provinces Municipalities

Source: Ministry of Economy data.

Note: Until 2017, including consolidated public expenditure; 2018–21, original estimate; 2018–19, based on data from the Ministry of the
Economy; 2020–21, for provinces and municipalities, based on the average of previous years, and for nation, based on the 2021 budget message.

Figure 4.9 Average Annual Federal–Provincial Transfers for Water Supply and Sanitation per Noncovered
Person, 2016–18, and Provincial GDP per Capita, 2004
40,000
Annual US$ per person non covered

80

Provincial GDP per capita 2004

70 35,000
person (Avergae 2016/18)

60 30,000
50 25,000
40 20,000
30 15,000
20 10,000
10 5,000
0 0
.e z

uq .
n

+ t
La GBA

Sa pa

S Fe
l g is

Có ral
ta a
M arca

In ío N za
r d ro

La os
Sa oja
an
tre ..

lE a
ro

y
Tu co
M án

rri s

a
Fo tes
Ne A.S

BA bu

Co one
nt Cru

En la.

ju
Ca dob

de lt

os
ué

ta Lu

rio eg

ste
R do

Rí

a
m

Ju

m
a
e

Ju

en
Ri
a
CA Chu

rm
Ch
S
I.

en

e
nt
Pa

To an

cu
en

isi
, A ta

n
n
Sa

o.
te

iag
go
ue

nt
Sa
lF
de
rra
Tie

Annual transfer per non-covered person Provincial GDP per capita

Source: Data as of the first quarter of 2018 based on the National Institute of Statistics and Census data: 2010 Census, Permanent Household
Survey (EPH 2014/18), and Annual Survey of Urban Households (EAHU 2010/14). More details in appendix B.

federal funds. Federal funds remaining after pensions determined by provinces’ coverage needs—if they
and interest payment on debts are scarce, generating were, transfers per uncovered person would be the
uncertainty about the amount that will go to the water same for all jurisdictions, but that is not the case
sector. And a varying pattern of transfers from the (figure 4.9).
federal to provincial governments lacks clear criteria.
Transfers of national funds to cover water supply and Without clarity on available budgets, utilities cannot
sanitation service gaps are not related to provinces’ develop clear strategies to expand services. They must
economic capacity as measured by their GDP or to their often postpone executing infrastructure when national
needs (if transfers were intended to be progressive, investment priorities shift and planned resources are
this relationship should be inverse). Nor are transfers discontinued or suspended.
 84 ARGENTINA: VALUING WATER

Provincial spending on drinking water and sanitation percentages seem low, public spending is rigid, so no
tends to be insignificant in the consolidated budget growth is expected.
of the provinces, but this varies greatly by province.
Provincial and local utilities do not play a strong role in
In 2017, drinking water and sanitation budgetary
executing nationally funded infrastructure, even if the
spending in the 23 provincial jurisdictions and
local providers must later operate the infrastructure.
the CABA was equivalent to 1.2 percent of social
This low participation contributes to the inefficient
service spending and 0.7 percent of total spending
investment of national funds, and does not facilitate
(figure 4.10). By jurisdiction, spending varied
the creation of capacities at the local level. Difficulties
from practically zero in the CABA to 4.6 percent
arise when the provincial providers take over the
of social service spending and 2.6 percent of total
infrastructure to operate it.
spending in Misiones province. Although these

Figure 4.10 Water and Sanitation Spending, by Province, 2017

250 5.0
4.5
200 4.0

Ratio WSS/SS and WSS/TE

3.5
Million of US$

150 3.0
2.5
100 2.0
1.5
50 1.0
0.5
0 0
Sa es

Fo an

La sa
Tu oja
án

Sg Neu a
de én

Sa ro
Rí a Fe

ta o

Ch a
ut

S tal

os s

Có es

go orr ba

.e s

tre .
os

M aco

nt a
uz
BA

La ujuy

pa
En .A.S
en Lui

nt te
lt

Sa doz
Ca egr

ub
ste
o

ar
on

Rí

Cr
C o
Ju

m
Sa

To
qu

CA
Ai

, A ien
Ri
rm

Ch
rd
m
nt

J
I
Bu an
cu

Pa
N

en
isi

a
n

lE

o
M

o.

ue
lF
de
rra
Tie

Argentinian Provinces
WSS Spending WSS Spending/SSS WSS Spending/TE

Source: Based on provincial budgets and Ministry of Economy data.

Note: SSS = social services spending; TE = total expenditure; WSS = water supply and sanitation; CABA = Ciudad Autónoma de Buenos Aires
(Autonomous City of Buenos Aires); WSS = water supply and sanitation.

Notes Climate Change (Law No. 27,520), the Climate Change

1. National Constitution. Arts. 1, 41, 121, 124, 126. Commission was created.
2. National Constitution. Arts. 75 inc. 10, 75 inc. 13, 75 inc. 5. AGN (2015, p. 23) stresses that the base document of
18, 75 inc. 30 CN. the Federal National Plan for Water Resources (2007)
lacks quantifiable goals. In addition, the Institutional
3. Hazardous Waste Act 24,051, and the minimum standards
Evaluation Matrix for Irrigation Systems, prepared within
for environmental protection Act of Industrial Waste
the framework of PROSAP (PROSAP-UTF / ARG / 017 /
and Service Activities 25,612, the Environmental Public
ARG), assessed the situation of each province in matters
Information Act 25,831, the Native Forest Protection Act
directly associated with compliance with the PRPH (e.g.,
26,331, and the Glacier Protection Act 26,639.
institutional management, information system, water
4. In this way, for the Glacier Law (Law No. 26,639), from valuation, etc.) and found a general lack of compliance.
the declaration of federal environmental interest to the
6. Foundational Letter of COHIFE ratified by Law 26,438/2008.
National Glacier Inventory, the Glacier Commission was
created; for the Law of Native Forests (Law No. 26,331), 7. Commissions within COHIFE nurture interprovincial ties
the Commission of Native Forests was created; and for and the coordinated management of shared resources,
the recent Law of Adaptation and Mitigation to Global with the participation of the national government.
 85

They also promote measures for resource preservation Minimum Budgets for Environmental Protection of Native
and responsible use. Among these commissions are: Forests; Law 26,639/10, Minimum Budgets for the
legislation, water quality, education and culture, Protection of Glaciers (2010); Law 22,428, Promoting Soil
establishment of public domain river shorelines, water Conservation; and Law 22,351, Parks, Natural Reserves,
emergency, groundwater, meteorological radars- and National Monuments.
SINARAME, mapping of interjurisdictional basins,
15. For example, in the case of Buenos Aires, article 121 of
governance, drinking water and sanitation, and gender.
Law 12.257 provides for basin committees, which should,
8. PRPH, principle 22 (COHIFE 2003). Within this as a minimum, provide for integrated basin and regional
context, there is a regulation for conflict resolution development.
approved by all provinces, but its application needs
16. Main activities developed by the AIC are: (1)
the authorization of the litigating provinces. This
interjurisdictional coordination of the management of
mechanism is applied before proceeding to the
the water resource of the basin; (2) quality control of
ordinary justice system.
water bodies, evaluations, and environmental studies;
9. Source: https://www.argentina.gob.ar/ambiente​ (3) hydraulic, hydrological, and drainage studies;
/institucional/que-hacemos (consulted in March 2021). (4) forecasts and meteorological alerts (for the prevention
of frost, severe storms, and other phenomena, assistance
10. The Secretary for Environmental Policy in Natural
in fighting forest fires, mountains, etc.); (5) survey
Resources is in charge of (1) the conservation of
processing of hydrometeorological information and
biodiversity; (2) strategies for forests and soils, with
reservoirs; (6) river systematization and coastal defense
actions aimed at the care and sustainable use of
works; and (7) inspection of the regulations for: water
native forests, sustainable soil management, and the
management, environmental protection, and Dam Safety
fight against drought and desertification; (3) aquatic
(the latter within the ORSEP Comahue) of the concession
ecosystems by protecting, restoring, and promoting
contracts of Hidroeléctricas Alicurá SA, Piedra del Águila SA,
the responsible use of water, glaciers, sea and coastal
Pichi Picún Leufú SA, El Chocón SA, and Cerros Colorados
areas, wetlands, and the preservation and monitoring of
SA. COIRCO’s main function is overseeing agreements
watersheds and water quality; and (4) land use planning,
among five provinces (Buenos Aires, Mendoza, La Pampa,
integrating environmental, social, and economic variables,
Rio Negro, and Neuquén). Such agreements encompass a
and linking the uses of the land with the environment’s
series of developments in the basin (irrigated areas, dams,
capabilities to provide goods and services (https://
canals) with associated volumes and flows.
www.argentina.gob.ar/ambiente​/politica-ambiental,
consulted in March 2021). The Secretary for Climate 17. In the case of the CILP (Interjurisdictional Commission
Change, Sustainable Development, and Innovation works of the La Picasa lagoon), the national government
to confront climate change and promote sustainable finances the activities of the committee, including the
development through innovative programs and new development of infrastructure. The other committees
forms of production and consumption. The purpose of do not have legal status or a dedicated budget for their
the National Cabinet on Climate Change is to articulate activities (Hofstra and Laguzzi 2017; OECD 2019).
the different government areas of the National Public
18. Institutional diagnostics conducted at FAO and PROSAP
Administration, COFEMA, and different actors of civil
(2015). Complemented with field visits conducted under
society, and the design of consensual public policies,
this study.
and generate coordinated responses to adapt vulnerable
sectors to impacts of climate change that, as a result, will 19. For example, the province of Córdoba establishes the
develop and implement the National Plan for Adaptation creation and organization of canal consortia through
and Mitigation to Climate Change (https://www​ the Undersecretary of Water Resources through the
.argentina.gob.ar/ambiente/cambio​-climatico/gabinete​ Law 9,750. The Road Consortium Regime in Chaco
-nacional, consulted in March 2021). The Secretary can undertake works considered necessary for the
of Environmental Control and Monitoring implements maintenance and rehabilitation of canals and natural
pollution control and prevention policies, and promotes water runoff systems in rural areas through an
the circular economy (https://www.argentina.gob.ar​ agreement with the Provincial Water Administration
/ambiente/control-y-monitoreo, consulted in March 2021). (APA), as established in Law 3,565 and its amendments.
Santa Fe also have consortia that are recognized and
11. San Juan issued the first ordinance in 1824.
participate in provincial instances.
12. COHIFE is evaluating all water tariff policies across all
20. Today the National Water Plan is being reviewed
provincial jurisdictions in order to assess the differences
to reinforce the federal approach in the concept of
and support those that are less advanced.
integrated water resources management. Many basin
13. This assessment by Pochat (2005) is still valid. committees are also in the process of elaborating or
reviewing their basis plans to incorporate the integrated
14. Such as Law 25,688/02, Regime of Environmental
management approach.
Management of Waters; Law 25,675/02, General Law
of the Environment; Law 25,831/04, Free Access to 21. In the province of Rio Negro, the Provincial Water
Environmental Public Information; Law 25,916/04, Department (DPA), being the sole water authority,
Management of Household Waste; Law 26,331/07, has a broad matrix in relation to income from water
 86 ARGENTINA: VALUING WATER

and its services and allocation of funds. The DPA is 28. The prohibition applies unless no harm was caused by
the enforcement authority for the drinking water and alterations—which makes the system less strict than
sanitation concession contracts, and one of its functions is when there was no prohibition.
to approve the tariff schedules of all the concessionaires
29. In 2010, for the Rio Negro, resolution No. 1403 issued
that provide these services in the province. It also
by the Provincial Water Department (Law 2952, Dec.
receives income from hydroelectric royalties of all the
1058/05) set the public domain line linked to a water
works located on the Limay River (Alicura, Piedra del
flow of 1,900 cubic meters per second, considered
Aguila, Pichi Picun Leufu, Chocon, and Arroyito). These
maximum. The second line, of evacuation, extends from
royalties, plus part of the income from generation plants
the axis of the river up to 2,700 cubic meters per second.
owned by them and part of the royalties from use
A third strip reaches up to the “flood line” coinciding with
of public water, are used to carry out different water
a flow of 3,200 cubic meters per second.
works. It is an example worth mentioning, although
clearly an exception since their sources of income are 30. The Riverbank Line Commission, within COHIFE, is
not the rule in all provincial organisms. In Mendoza, the also integrated by the Federal Investment Council
General Department of Irrigation (DGI), as a financially (CFI) and the Argentine Federation of Surveyors. In
autonomous water authority, collects and administers the case of Buenos Aires, the Water Authority (ADA)
water tariffs from all water rights holders. The tariffs are through the Department of Limits and Restrictions to
approved and shared between the irrigation organizations the Domain contemplates the criteria that are used for
and the DGI to cover: administrative and water resource the demarcation of the bank line that are established
management costs for water rights administration, in provincial law 12,257 (http://www.ada.gba.gov.ar​
hydrometeorological forecasting, quality control, resource /linea_deribera, consulted in March 2021). In Corrientes,
management, and planning; operation and maintenance the Water Authority (ICAA) is the competent authority
of dams, canals, drains, and other water infrastructure; for the application of the determination of the bank line
and repayments of investments in infrastructure. and regime of use of real estate in flood areas (http://
22. This disincentivizes users to pay charges, since they do icaa.gov.ar/normativas/, consulted in March 2021).
not see transparent management of the funds collected Among the attributions of the AIC, is to establish technical
or the direct benefits of the charges for resource standards for determining the bank line of the water
management. courses of the basin.

23. This situation was already reported in World Bank (2000). 31. In the last 20 years, four basin committees have been
established to manage urban water risks in the Buenos
24. Water quality programs and monitoring stations at Aires Metropolitan Area: Lujan River Commission,
COIRCO and AIC, available at https://www.coirco.gov​ Reconquista River Commission, Interjurisdictional
.ar/calidad-de-aguas/ and http://www.aic.gov.ar/, Committee of Medrano River, and Matanza Riachuelo
respectively (consulted in March 2021). Basin Authority.
25. At the national level, a National Action Program 32. Private concessions in the sector took place as follows:
to combat desertification, land degradation, and in 1995, Formosa, Tucumán, and Santa Fe; in 1997,
drought was carried out, and updated according to Córdoba and Santiago del Estero; in 1998, Salta,
the 2030 Agenda with its components on education Mendoza, Misiones, and Buenos Aires provinces; in 2000,
and awareness, policy framework and institutional Catamarca; and in 2002, La Rioja.
articulation, technology and knowledge, capacity
building for implementation in the territory, and financial 33. Until 2011, seven arbitration lawsuits were initiated
resources (SAyDS 2018b, 2018c, 2019). corresponding to the following concessions: Aguas
del Aconquija (Province of Tucumán), Azurix (Buenos
26. A national plan seeks to promote the conservation, Aires), Aguas Provinciales de Santa Fe (Santa Fe), Aguas
restoration, and sustainable management of agricultural Argentinas (AMBA), Aguas Cordobesas (Córdoba),
soils. Available at: https://www.argentina.gob. Sanitary Works of Mendoza (Mendoza), and Aguas del
ar/noticias/se-creo-el-plan-nacional-de-suelos- Gran Buenos Aires (Buenos Aires). As a whole, 18 million
agropecuarios (consulted in March 2021). people were indirectly affected, that is, approximately
half of the country’s population. Likewise, the total claims
27. Only in 2000 were bank lines first delimited in some
exceed 2.5 billion dollars.
provinces, and in 2007 the National Commission for
Permanent Monitoring on the Bank Line and Water Risk 34. There is plenty of literature referring to this phenomena:
was formed by the Argentine Federation of Surveyors Fraquelli and Moiso 2005; Abbot and Cohen 2009;
(FADA), the Federal Investment Council (CFI), and Danilenko et al. 2014; Klien and Michaud 2016; Diaz and
COHIFE. Regular meetings are convened to search for Flores 2015.
updated concepts, look for better tools, and establish
new agreements. Some debates remain open regarding 35. The regulatory agencies are part of a national regulatory
environmental issues such as climate change and water network (Asociación Federal de Entes Reguladores de
risk zoning, the importance of communications efforts, Agua y Saneamiento, AFERAS). AFERAS is a nonprofit
and the need to generate a proposal that corrects some association formed to promote the development and
articles of the Civil and Commercial Code approved in strengthening of WSS sector regulatory entities. It focuses
2015 (COHIFE 2018). on research and developing new knowledge, promoting
 87

knowledge exchange, and providing capacity-building 49. Among its strategic projects, the SMN has a Third Party
and technical support to regulators. Network Integration project that includes information
on complete meteorological and/or rainfall stations. To
36. Resolution 343—E/2016 Ministry of Interior, Public Works
this end, a series of institutional agreements have been
and Housing.
signed that accompany this strategy.
37. At the time of publishing this report the Ministry of Public
50. INTA has a presence in the five regions of the country
Works prepared a new Federal Water and Sanitation
(Cuyo, Northeast, Northwest, Pampeana, and Patagonia)
Plan, including information on rural areas and schools,
that includes a headquarters, 15 regional centers,
and also introducing formulas for prioritizing investments
6 research centers with 22 dependent institutes,
according to different levels of vulnerability.
53 experimental stations, and more than 350 extension
38. Such important gaps in access to infrastructure and units. The National Water Institute (INA) is in regional
services within agglomerations are indicative of the centers in Buenos Aires, Córdoba, San Juan, Mendoza, and
unsustainability and high costs of the current urban Santa Fe provinces.
expansion patterns, and they negatively affect livability 51. See Brieva (2018). Other contributing institutions
(Muzzini et al. 2016). include the Argentine Institute of Nivology, Glaciology,
39. Referred to the official service provider in a specific and Environmental Sciences (IANIGLA) and provincial
jurisdiction. In the case of GBA, this provider is AySA. networks such as the Provincial Water Department (DPA)
of Río Negro, the Hydraulic Directorate (DH) from Entre
40. In addition, ERAS Resolution (10/2019) shows the Ríos, the Chaco Provincial Water Administration (APA),
magnitude of the problems of the “disengaged” Formosa Monitoring Network, and the Correntino Institute
neighborhoods (in terms of lack of a direct link with of Water and Environment (ICAA).
the water networks of the operator), in terms of
population included in these areas and issues related to 52. Argentinian Meteorological Radar. The government is in
maintenance of water quality, as well as the efforts that the process of acquiring 10 more radars.
the control entity and AYSA must make to ensure the 53. Own analysis based on data from the National
quality of the service. Meteorological Service, the National Hydrological
41. Exemplified, for instance, in the context of AySA in the Network, and other networks at the national and
Project Appraisal Document for the World Bank–financed provincial level. Available upon request.
program “Buenos Aires, Water and Sanitation with a 54. This study received information from the provinces of
Focus on Vulnerable Areas Program,” 2021. Also, OECD Buenos Aires, Corrientes, and Santa Fe.
2019.
55. Numbers reported by the provinces of Santa Fe
42. Original evaluation based on the “Inventory of Dams and Buenos Aires. There is a wide recognition that
and Hydroelectric Stations” (SSRH 2010–2013), the engineering designs of gray infrastructure are obsolete
“Development of the Argentine Hydroelectric Sector” due to changes in land use, climate change and
(IE-ANI 2016), and “Dams and Development: Grounds for variability, and it is necessary to advance in a process
a Necessary Debate” (Manilow and Goyenechea 2015). of updating the flood plans of the 100 main cities in the
country. Government sources unofficially estimate the
43. See map 15. More details about the analysis can be
investment amount at the national level to be about
found in appendix B.
10 times higher than the conservative number reported
44. See appendix B for this analysis. in this study for the two most affected provinces.

45. Los Caracoles was expected to produce 715 gigawatt 56. The proposed interventions are those that satisfy an
hours per year, but the average production is 200. internal rate of return of at least 12 percent per year for
a horizon of 60 years or more, except in the case of the
46. Energy Scenarios 2030 (MINEM 2017). There are other evaluation of investments in complementary irrigation,
projects identifying dam projects, which lists 43, most related to the extraction of water from an aquifer in
involving international waters (IE-ANI 2016). Córdoba, where 11.75 percent was considered. For
47. About 80 percent of the storage capacity (hydropower surface water investments, due to the associated risks, a
installed capacity) was built in the 1970s or earlier, rate of 18 percent was used. See appendix F for details.
so it is 50 years old. A major program to renovate 57. The possible improvement actions aimed at optimizing
and upgrade this complex and costly infrastructures is use, either to mitigate the impacts of projected/future
desirable. shortage events, or to free up resources for other uses,
depends on the degree of feasible investment, which
48. Noneconomic costs must be included. All water control
has a direct relationship with the characteristics of the
infrastructure generates major environmental and social
systems and the profitability of the different production
impacts. People living in areas surrounding a project
models, in addition to other factors such as social-cultural
could be displaced. And downstream flow, including the
aspects, size of the plots, associated markets, access to
flow of sediment, must be compatible with maintaining
credit, etc.
ecosystems, so changes in water quality, possible
eutrophication, and the migratory needs of fauna must be 58. Increase to 85 percent efficiency in collective systems
analyzed. and 68 percent intraplot.
 88 ARGENTINA: VALUING WATER

59. Specific assessments to the local agroecological, dollars, despite the restrictions of the COVID-19 pandemic.
watershed and water governance context need to be Data for 2017 are from national and provincial budgets and
conducted in each case. the financial information of providers. Data for 2018–20
are from the Economic Ministry, corresponding provincial
60. Subsecretaría de Puertos, Vías Navegables y Marina
ministries, and the financial statements of providers. See
Mercante. Available at: www.argentina.gob.ar/hidrovia​
appendix C for more details.
-federal-2021/informacion-tecnicas (consulted in
March 2021). 71. The investment is required to expand water infrastructure
to 7.5 million people currently lacking service and
61. Alternatives 1 and 2 at https://www.argentina.gob.ar​
sewerage to 21 million people currently lacking service,
/hidrovia-federal-2021/informacion-tecnica. Alternatives
beyond populations added through normal growth
3 and 4 based on Ministry of Transport presentations:
in each case. The total amount beginning in 2018 is
alternative 3 was presented on April 29, 2019, https://
US$40.5 billion. It is estimated that in the 2018–20 period
www.drive.google.com/file/d/1T1SpGNIfFzaAknwD​
US$4.5 billion were invested. The projected need for the
_pkW6IS99AiLy_hM/view; alternative 4 on December 3,
10 years between 2021 and 2030 is US$36 billion. The
2019,https://www.argentina.gob.ar/sites/default/files​
required per capita investment—US$1,000 for water and
/presentacion_proyecto_hidrovia_2021.pdf.
US$1,300 for sewerage—corresponds to World Bank team
62. The year 2017 was chosen as the most recent not estimates based on the cost analysis of ongoing projects
affected by macroeconomic anomalies. and other studies (Busolini 2012; Garzonio 2010; Hutton
2016; Nuñez 2015; Soulier et al. 2013).
63. From 2017 data on national and provincial budget
execution, informed by the respective secretaries of 72. Goals indicated in the 2021 national budget.
finance or their equivalent.
73. This amount is equivalent to 2 percent of the value of the
64. Source: 2017 budget execution corresponding to current infrastructure valued as new and a useful life of
provinces and nation, informed by the respective 50 years. It is a minimum estimate, insofar as it assumes
Secretaries of Finance or equivalent. that the current infrastructure is in good condition
and does not incorporate the renewal of the future
65. In 2018 the infrastructure fund more than doubled the infrastructure to be incorporated, for this last reason an
value of the previous years, but in 2019 it was reduced annual medium-term amount should be considered.
by 26 percent. In the case of the Matanza-Riachuelo
Basin in 2020, the funds, measured in dollars, more than 74. These data are for 2017.
doubled those disbursed in 2018. The values considered
here for the Matanza-Riachuelo Program exclude
transfers to AYSA that are accounted for as investments
in water and sanitation. Values for 2020 are before the
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/docprofile.aspx?nodeid=27271341.
Ministerio de Planificación Federal, Inversión
Pública y Servicios, Subsecretaria de Recursos World Bank. 2017b. Diagnóstico de la Prestación de
Hídricos de la Nación, 90. http://datos.minem​ Servicios de Agua, Saneamiento y Electricidad
.gob.ar/dataset/inventario-de-presas. en 10 Provincias del Norte Argentino.
Recomendaciones para la Mejora del Sector,
Valls, Mario F. 2005. “Ley 25688—Régimen de Gestión
Buenos Aires. Washington, DC: World Bank Group.
Ambiental de Aguas. ¿Presupuestos mínimos
ambientales o policía federal de actividades que World Bank. 2017d. “Salado Integrated River
causen impacto ambiental significativo sobre Basin Management Support Project,
otras jurisdicciones?” Jurisprudencia Argentina JA Program Appraisal Document.” http://
2003-II: 785. documents1.worldbank.org/curated​
/en​/957721491703233027/pdf/Project​
Van de Graaf, Thijs. 2013. “Fragmentation in Global
-Appraisal-Document-PAD-P161798-March-16​
Energy Governance: Explaining the Creation of
-from-VV-03-23-2017-03212017.pdf
IRENA.” Global Environmental Politics 13 (3):
(consulted in March 2021).
14–33.
World Bank. 2021. “Buenos Aires Water Supply
Wollmann, Hellmut. 2008. Comparing Local
and Sanitation with a Focus on Vulnerable
Government Reforms in England, Sweden,
Areas Program, Program Appraisal
France and Germany: Between Continuity and
Document.” https://documents.worldbank​
Change, Divergence and Convergence.
.org/en/publication/documents-reports​
World Bank. 2000. Argentina Water Resources /documentdetail/642741614567674228​
Management: Policy Elements for Sustainable /argentina-buenos-aires-water-supply-and​
Development in the XXI Century. Washington, DC: -sanitation-with-a-focus-on-vulnerable-areas​
World Bank. -program (consulted in March 2021).
C HAPT E R 5

Water Sector Performance

T
his chapter assesses water sector performance territory, impeding comprehensive knowledge about
in Argentina—the consequence of the strengths current and historical conditions. Where information
and weaknesses of its architecture (institutions, exists, there are no fully developed, appropriate
infrastructure, and financing), as identified in chapter 4. mechanisms for sharing it widely among institutions
It evaluates performance in the following three sector or with the general public—a coordination deficit
components: that outstrips the measurement infrastructure deficit
• Water resource management: whether the described in chapter 4. These data problems concern
dynamics of supply and demand for water are water supply, water demand, and demand dynamics
known, water resources planning is adequate, and in all sectors. The national government is upgrading
its distribution and management satisfy all demands the National Water Information System. The system
for quantity and quality. integrates information on surface (RHN), atmospheric
• Mitigation water-related risks, measured by (SINARAME), and ground water. This will be key to
exposure to floods and droughts among cities, strengthening cooperation between provinces to
agriculture, infrastructure, and transport. promote regional understanding (SIPH 2019).
• Water services—how well they are provided in the The scarcity of information prevents the development
cases of irrigation, drinking water, and sanitation in
of analytical tools for water resource management.
terms of efficiency and sustainability.
National hydrological modeling products are not
generally available for planning or designing
Water Resource Management infrastructure. Some local and regional tools exist.
Hydrological Data, Information, Complete and calibrated hydrological models and
balances for certain basins have been prepared,1 but
and Analysis this is still not a extended practice across the country.
A shortage of data makes it difficult to analyze, Without such tools, water resource management can
understand, and manage Argentina’s water. The be forced to rely on subjective interpretations and
country’s size, the morphology of its basins, and the viewpoints. In environments with clear externalities,
large amount of transboundary waters contribute to preconflict tensions, and distrust between actors, the
the problem. Data are scarce and uneven across the lack of processed information impedes management.
 94 ARGENTINA: VALUING WATER

There is still insufficient information on groundwater Basin Planning, Resource Management,

and glaciers—the main natural hydrological regulators and System Operations
in areas of scarcity—and on the humid pampa with its
hydrological complexity and agricultural importance: Comprehensive hydrological planning processes
are in general just beginning in Argentina and
• Underground renewable and fossil resources and
have yet to apply the principles of integrated
extraction are yet to be adequately quantified.
So, changes to this resource are not monitored management. Many so-called planning instruments
well, even in aquifers already identified as are based on investing in infrastructure. River basin
sensitive. Mendoza province has a system for the management plans, conceived as tools to facilitate
monitoring and control of its aquifers that is used water resource management and establish links with
in decisions about concessions and restrictions territorial development, are in incipient phases, and
in times of scarcity, though there is room for these two areas are not yet well interconnected
improved monitoring. San Juan province also (Calderon et al. 2020). Baselines on basin resources
has an incipient system. The absence of such are still scarce, and they do not usually establish
systems in La Rioja and Catamarca provinces
management or allocation goals or indicators of
has led to overexploitation of groundwater. The
SIPH, together with the provinces, has started to the capacity to meet demand or relieve surpluses.
inventory interjurisdictional aquifer systems inside The National Water Plan established a vision for the
the territory (SIPH 2019). water sector, and it would need to be updated once
the hydrological plans are completed. These plans
• No study has yet been undertaken of glacier retreat
can offer a more comprehensive diagnostic of the
as linked to changing water balances, and thus
the seasonal availability of water. The lack of an situation that would feed the National Water Plan. It
adequate network of stations at different altitudes is also possible that some provincial water resource
in the Andean region hinders evaluating the role management policies would need to be updated
and dynamics of snow in the water cycle. The once the hydrological planning exercises are
foreseeable decline in snow mass due to climate completed. This will help assess whether the policy
change makes this information essential. Current ambitions are realistic.
estimates of water balances available are based
on estimated snow contributions mostly from The provinces manage water resources, so
field observations and, for San Juan and Mendoza interjurisdictional basin organizations are limited in
provinces, telemetric information that is limited at practice to specific functions, depending on the region,
the moment. Global and satellite data are adequate basin, hydrological conditions, and complexity of the
for an accurate quantitative approach. systems.3 The provinces—responsible as they are
• Water dynamics in the pampa are complex and for water licensing and permitting, water allocation,
need to be better understood. In vast areas of monitoring, control and enforcement, and delivery
Argentina, traditional hydrological evaluation of water services— would find delegating them to
methods are not optimal. This is especially true a nonprovincial agency difficult. The potential of the
in the humid pampa, which hardly has a natural interjurisdictional committees remains in leading basin
drainage network while much of the surface does planning, achieving consensus on water allocation
not drain. The exploitation and protection of water
criteria, and resolving disputes.
in such areas requires thorough quantitative and
qualitative analysis of vertical surface–groundwater– Not all river basin organizations have the same
evapotranspiration flows. level of autonomy in decision-making and economic
For monitoring water quality, COHIFE is consolidating independence. Examples of river basin organizations
the provincial network information to create a national with delegated management functions are found
map, reflecting data on SDG indicator 6.3.2 on good in basins facing major challenges, such as the
ambient water quality. COHIFE is developing a method Mantanza Riachuelo Basin Authority, and basins where
to evaluate water body quality that considers the coordinated intervention is needed, as in the case of
specific characteristics and socioeconomic activities the Interjurisdictional Authority of the Limay, Neuquén,
of each area or ecoregion.2 COHIFE has provided data and Negro river basins. The financing of river basin
on SDG indicator 6.3.2 for some provinces, offering a committees and the degree of their authority are
preview of the national situation, but the analysis has critical issues that are well defined in only a few cases.
not been systematized yet. Once the basic indicators This kind of definition needs to reach the entire set of
have been consolidated, water quality analysis could committees across the nation.
be tailored to zones, resulting in national quality control Steps toward implementing the Guiding Principles
regulations on key water bodies for the development of Water Policy have not gone far.4 The COHIFE and
of ecosystem services. the SIPH are promoting the development of technical
 95

instruments to comply with the guiding principles.5 holistic criteria for assigning them. Understandably
And these agencies, motivated to comply with the environmental flows may differ depending on the
SDGs, are developing technical guidance documents to context, the characteristics of the water course,
standardize the analysis of available resources and the and the priority uses. And some water codes
monitoring of quality and quantity.6 establish criteria for assigning environmental
flows. But universal concepts could be applied and,
The effective combined management of surface
based on these, standards adapted to different
water and groundwater resources is not yet a reality.
climate and ecological realities. This is even more
Given the knowledge gaps on groundwater, the
necessary in areas with considerable pressure in
extent of aquifer exploitation is mostly unknown,
agricultural or hydroelectric use, because these
though aquifers are widely used in some provinces
systems are exposed to higher environmental
characterized by scarcity (San Juan, Mendoza,
pressures and conflicts are also more common.
La Rioja, and Catamarca). In other provinces,
There are examples in other countries, including
groundwater is underused but has great potential (La
federal ones, where these impacts are considered
Pampa, Córdoba, San Luis). In all cases, even for the
jointly with other economic and social impacts,
Guaraní Aquifer, knowledge gaps significantly curtail
including in distributive analyses both between
developing evaluation and sound management of the
affected parties and areas, as well as at
resource, which are essential under future climate
the national level (Gallego Corcoles et al. 2020;
change scenarios and expected increasing water
Zhang and Hatchett 1998).7
demand (Vives et al. 2000, 2020). The combined
use of surface and groundwater, based on an overall Wetlands are not yet used to their full potential as
balance and climate dynamics, offers a missed green infrastructure assets able to store or clean
opportunity to maximize water availability, mitigate water. The First National Inventory of Wetlands will
the effects of dry shocks, and avoid salinization and contribute to environmental and development planning
water table degradation. through regulations consolidating conservation and
sustainable use policies.8 Some provinces that integrate
Bulk water distribution systems are managed
wetland systems and flooded areas have begun the
and operated differently across provinces, partly
conservation and integral management of these
due to the provinces’ disparate capacities. In
ecosystems.9
some cases, the operation of reservoirs serving
several provinces has led to agreements on
interjurisdictional committees. The most advanced Transboundary Water Management
operation is the large system of hydroelectric dams Since Argentina is downstream of important
in the Limay, Neuquén, and Negro rivers carried international basins and depends heavily on external
out by the concessionaires under the control of the flows, transboundary water management is vital to
Interjurisdictional Basin Authority. Some of these it. Argentina, the Plurinational State of Bolivia, Brazil,
agreements followed negotiations on the design Paraguay, and Uruguay participate in the International
and operation of the reservoir systems, supported Coordination Committee for the countries of La Plata
by hydrological and planning models (for example, Basin (CIC La Plata Basin). Those countries identify
the Water Management Authority for the Colorado common objectives, themes of interest, and strategic
River). In Mendoza province, the General Irrigation actions in the basin. The committee’s Strategic Actions
Department controls water distribution for large Program addresses critical challenges identified in
irrigation systems. In San Juan province, the a transboundary diagnostic analysis developed in
Directorate of Hydraulic Works allocates water, 2016–17. The following stand out:
aiming to optimize its use. In San Luis, Salta, Jujuy,
and La Rioja provinces, irrigation consortia operate • Hydrometeorological information gaps still hinder
bulk water systems. In Tucumán, Neuquén, and Rio efficient prevention of the impacts of extreme
events. For example, the reduced depth of the
Negro provinces, irrigation consortia in coordination
Paraná, clearly seen at the end of 2019 and in the
with the provincial water directorates operate water first months of 2020, cannot be analyzed rigorously
systems. since no consolidated data repository exists. The
riverside areas of Parana are traditionally the
ones suffering the most from large floods, so this
Environmental Sustainability information is vital.
Argentina has no standardized guidelines for • Loss of water quality is caused by mining and
assigning environmental flows, nor a methodology industrial activities without adequate treatment
for establishing hydrological, hydrobiological, or of sewage and solid waste in urban centers, and
 96 ARGENTINA: VALUING WATER

agriculture with intensive use of agrochemicals. Mitigation of Water-Related Risks

Yet, the lack of common standards prevents
determining quality parameters by mutual Floods
agreement.
In Argentina, 77 percent of disasters since 1970 were
• Sedimentation of the water courses of the hydrometeorological, and 54 percent were caused by
basin limits the capacity of inland waterways
floods.13 Some 70 percent of the Argentine population
and ports. It leads to major maintenance
costs, caused by increasing erosion and land lives in the natural flood plains of the lower La Plata
degradation, changes in land use, and loss of Basin—the alluvial plateau of the Paraná, Paraguay
vegetation cover. and Uruguay rivers and their tributaries. That area
has the highest rainfall in the country and high water
The Strategic Actions Program also identifies a series tables, and the corresponding riverine provinces are
of areas with specific components and specific actions recurrently exposed to flooding.
to be taken.10 Despite this progress, an integrated
basin management mechanism that allows decision- Flood magnitudes at different intervals of recurrence
making on the basis of consolidated information has have been estimated using the global Fathom model.14
not succeeded in any of the critical areas described. Map 5.1 shows projections for combined river and
In 2019, countries in the CIC met to prepare a new storm flooding at 5-year and 100-year intervals
program to set up the basis for the implementation of nationwide. Note the concentration of flooding in the
the Strategic Actions Program.11 La Plata Basin.

Pollution is particularly a problem in the Pilcomayo About 28 percent of the population is exposed to
international basin, and erosion in the Bermejo floods recurring every 100 years.15 More than 4
international basin. In the first case, the Tri-National million people, or 9 percent of the total population,
Commission for the Development of the Pilcomayo are exposed to floods with a 5-year return period,
River Basin is preparing a new management plan and half of them are poor. Most of this population is
for the basin, with external financing. In the second in the Buenos Aires metropolitan area, where more
case, the Regional Commission of the Bermejo than a million people are exposed to 5-year floods.
River is executing work identified in an existing But the population in the Pampas region, and the Gran
plan prepared by the Binational Commission for the Chaco region, that is, the middle and lower sectors
Development of the Upper Basin of the Bermejo of the Paraná–Paraguay Basin, are also significantly
River to control the clearing and minimize the affected. The basin, producing about 70 percent of
exposure of areas sensitive to erosion, and also the country’s GDP, includes important urban centers
to promote new irrigation systems for production. such as Corrientes, Paraná, Resistencia, Rosario, and
Both the Tri-National Commission and the Binational Santa Fe, in addition to the Buenos Aires metropolitan
Commission still have significant organizational and area. Floods damage infrastructure and interrupt
capacity challenges. On the other hand, meetings city activities, including those of small and medium
are held related to the water resources shared enterprises, the main employment source in Argentina.
with Chile, incorporating the federal vision into the The departments with more than 150,000 people
binational agenda. exposed to 5-year-interval floods are Santa Fe and
Rosario (Santa Fe province), San Fernando (Chaco
Argentina, Brazil, Paraguay, and Uruguay signed province), Corrientes (Corrientes province), and La
the agreement on the Guarani Aquifer in 2010 Matanza (Buenos Aires province) (map 5.2, figure 5.1).
and ratified it in 2018 (Sindico, Hirata, and
About 250,000 square kilometers are vulnerable to a
Manganelli 2018). It encourages the parties
5-year-interval flood. This increases to 780,000 square
to advance knowledge and develop scientific
kilometers for a 100-year flood. This encompasses
capacity for better resource management. It also
almost half the area of seven departments
establishes guidelines for the aquifer’s sustainable
(figure 5.1).
use in line with the guidelines in the Draft Articles
on the Law of Transboundary Aquifers (UN 2008). Aerial spatial analysis shows the importance of
Compliance with the agreements varies, and increased exposure and vulnerability, as opposed
knowledge about the aquifer remains limited to greater intensity or frequency of precipitation in
(Sindico, Hirata, and Manganelli 2018). Since the explaining the growing impacts of floods. For example,
dynamics of such a large aquifer are very slow, an area of the Matanza Riachuelo Basin in the Buenos
it could have high replenishment globally but Aires metropolitan area is rapidly becoming denser
be overexploited in some areas. Its complexity more floodable (figure 5.2). Vulnerable neighborhoods
requires detailed studies developing real data for (1,400 in just the Buenos Aires metropolitan area),
modeling. 12 the results of unplanned urban expansion, are often
 97

Map 5.1 Locations Exposed to 5- and 100-Year Floods (Pluvial and Fluvial)
a. Five-year floods b. Hundred-year floods

Province division Province division

5 year return period 100 year return period
Flood Flood

0 300 600 1,200 1,800 2,400 0 300 600 1,200 1,800 2,400
Kilometers Kilometers

Source: Fathom data.

in areas of increased flood exposure. As they become Free aquifers are in equilibrium with the atmosphere
denser, their vulnerability increases. Nationally, 1,360 and therefore their level oscillates in direct relation to
vulnerable neighborhoods, 600 of them in the Buenos rainfall supply and evapotranspiration. This balance is
Aires metropolitan area, are exposed to floods with a particularly important in areas where the groundwater
100-year return period. level is close to the surface. Land use changes for
agricultural production—in relation to natural cover,
An average of 16.8 million hectares of productive such as pastures, grasslands, or forests—can generate
agricultural land are exposed to 100-year-interval water imbalances.
floods, and 5.1 million hectares to 5-year-interval
floods (map 5.3). Losses occur either because the The rise of the water table in the past two decades,
basins have low drainage capacity (water remains mainly in the Pampas region, is related to the increase
in fields with shallow slopes and high groundwater in rainfall, land use, and production systems. Various
tables), or because rural roads remain unusable: even studies demonstrate the impact of land use change,
if a planted field has recovered, farm workers cannot in which perennial crops and pastures are replaced
get to it or work on it. by annual crops (figure 5.3), modifying the water
balance. Based on the comparison between the water
Argentina’s transport networks are exposed to floods demands of the different land uses, in general, crops
(map 5.4) (World Bank 2019b). Some 1,000–1,500 evapotranspire less than grasslands (figure 5.4),
kilometers of roads, 45–50 kilometers of railways, generating greater runoff and infiltration, which in turn
136–150 road bridges, 1–10 major ports, and two major generates waterlogging problems due to the increased
airports are exposed to 10-year-interval floods. level of the water table. In the short term, fluctuations
in the water table could be associated more with
local rainfall, while, in the long term, changes in
Land Use Management land use and production systems could consume less
In Argentina’s rural areas, flood risk management water, building surpluses in the water table over time
relates closely to broader land management. (Bertram and Chiacchiera 2015).
 98 ARGENTINA: VALUING WATER

Map 5.2 5-Year Floods: Area and Percentage of Population Exposed, and Index of Social Vulnerability to
Disasters for Argentina and the Buenos Aires Metropolitan Area

Flooded surface (%) Population exposed

5 years (5 years) Index of social
0–5 0–2,500 vulnerability to disasters
5–10 2,500–7,000
10–15 7,000–13,000 0–1
15–20 13,000–20,000 1–2
20–25 20,000–33,000 2–3
35–30 33,000–56,000 3–4
30–35 56,000–87,000 4–5
35–40 87,000–155,000
40–45 155,000–212,000
45–50 212,000–261,000

Source: Based on data from Fathom (https://www.fathom.global/), National Institute of Statistics and Census and Climate Change Risk Maps
System (https://simarcc.ambiente.gob.ar/mapa-riesgo). Index of Social Vulnerability to Disasters is composed of 10 indicators that determine the
socioeconomic conditions of the population prior to a disaster (education, health, demography, housing, basic services, work, education and family).
Note: Left: percentage of area exposed. Center: number of people exposed: Right: Index of Social Vulnerability to Disasters. Top: Argentina.
Bottom: AMBA.

This occurs in the plain basins where the productive lands due to erosion, salinization, and
hydrological balance is determined by infiltration- deterioration of soil structure.
evapotranspiration processes over runoff, with a
In the north of the country, deforestation, together
close relationship between the dynamics of the
with other anthropogenic changes in the basin, can
water table and, as a consequence, the generation
also increase runoff and peak flows. When major field
of water surpluses that generate flooding (Walker,
erosion has occurred, reducing concentration times,
García, and Venturini 2018). In the southeast of the
increasing hydrogram peaks, and thus damaging
province of Córdoba, the rise of the water table is also
fields and infrastructure, bad disasters can occur.
documented, as in the town of Marcos Juárez, where
In Tartagal, a combination of intense rainfall and soil
the water table rose more than 10 meters between
degradation led to massive floods and landslides
1970 and 2015 (figure 5.3).
(Baumann et al. 2009).
This rise of the water table not only generates The growing concentration of production and
waterlogging in the area, which hampers production the incorporation of technological innovations,
and accessibility, but also affects the quality of triggered by economic and institutional factors,
 99

Figure 5.1 5-Year Floods: Departments, by Area Exposed and by Population Exposed
30% – 40%, 40% – 50%,
10 7
20% – 30%,
50

10% – 20%,
161 0% – 10%,
299

Santa Fe, Capital Chaco, Capital Corrientes, Santa Fe,

Captical Rosaria
Buenos
Aires,
La Matanza

<150000 <100000
(1) (11)

>250000 (1) <250000 (1) <200000 (2) <50000 (509)

Source: Based on Fathom and population projections from National Institute of Statistics and Census.
Note: Top: number of departments by share of area exposed. Bottom: departments by population exposed to flooding. In brackets, the number of
departments.

Figure 5.2 Spatial Analysis of Flood Exposure in the Matanza Riachuelo Basin

Source: World Bank team, based on Google Earth, Subsecretaría de Planificación Territorial de la Inversión Pública, Registro Nacional de Barrios
Populares, and Autoridad de Cuenca Matanza Riachuelo data.
Note: Left: flood locations (light blue) in areas of consolidated urban land (red), urban expansion (yellow), and low-income neighborhoods (violet
rectangles). The blue area is vulnerable to floods recurring at 100-year intervals. Many vulnerable neighborhoods are inside the floodable area. Right:
Aerial photograph of one of these vulnerable neighborhoods in the Lanús municipality in 2000 (above) and 2018 (below). Note the densification.
 100 ARGENTINA: VALUING WATER

Map 5.3 Agricultural Production Areas and Areas Flooded by 100-Year Floods
a. Agricultural production b. Areas vulnerable to 100-year-interval floods

Area exposed to
Production (tn/km2) floods (%)
0–50 0–10
50–100 10–20
100–200 20–30
200–400 30–40
400–800 40–50
800–1500 50–60
60–70
Departments 70–80
80–90

Source: Production data from Ministry of Agriculture, Animal Husbandry, and Fishing; and area exposed to floods data from Fathom.

Map 5.4 Road and Rail Networks and 100-Year Floods

a. Road network b. Rail network c. Areas exposed to 100-year floods

Bolivia Bolivia

Paraguay Paraguay

Brazil Brazil

Uruguay Uruguay

Chile Chile

AADF (’000 tons/day) AADF (’000 tons/day)

0–22 0–0.1
22–43 0.1–0.3
43–65 0.3–1.0
65–86 1.0–4.2
86–108 4.2–17.3 Area exposed to floods
108–129 17.3–71.1
>129 71.1–291.4 0–10
291.4–1194.5 10–20
>1194.5
20–30
30–40
40–50
50–60
Flow 60–70
National 100 km 100 km 70–80
Provincial Flow 80–90
Rural No flow

Source: World Bank 2019b.

 101

Figure 5.3 Evolution of the Participation of Annual and Perennial Crops and the Evolution of the Water
Table Level in Marcos Juárez, Córdoba, 1970–2015
100 1

Participation percentage
80 3

Depth (m)
60 5

40 7

20 9

0 11
1970 1975 1980 1980 1990 1995 2000 2005 2010 2015
Year
Perennial Annual Groundwater table level

Source: Adaptation of Bollatti, Andreucci, and Escolá (2015); and Andreucci, Conde, and Bollatti (2015).

Figure 5.4 Monthly Evapotranspiration Rates by Land Use—Natural Vegetation Cover, Soy Only, Wheat
Only, and Combined Soy and Wheat
180
Monthly evapotranspiration rate in mm

160
140
120
100
80
60
40
20
0
y

ry

ch

ril

ay

ne

ly

st

r
be

be

be

be
ar

gu
Ju
Ap
ua

ar

Ju
nu

em

to

m
Au
M
br

Oc

ve

ce
Ja

Fe

pt

De
No
Se

Month
Precipitation Evapotranspiration pastures Evapotranspiration soy
Evapotranspiration wheat Evapotranspiration soy + wheat

Source: World Bank team, based on hydrological balances estimated for this study.
Note: Less evapotranspiration implies greater runoff and infiltration, and thus less flood damping when the water table rises.

generate consequences for environmental and social population density are the ones of Chubut, Córdoba,
sustainability. These are particularly evident in areas La Pampa, Mendoza, Tierra del Fuego, and Tucumán.16
peripheric to the Pampa region, suggesting that the None has safe and abundant water sources like the
Pampa agriculture model should not be transferred rivers of the La Plata Basin. But drought could affect
to other regions without substantial modifications the population unconnected to supply networks even
(Navarrete et al. 2009). Despite the fact that today in departments with a nearby source, such as the
many of the drivers of hydrological dynamics are Buenos Aires metropolitan area, Corrientes, Entre Ríos,
beyond human control, cultivation emerges as a factor or Santa Fe.
that could be managed to minimize the undesirable
impact of floods (Viglizzo et al. 2009). The core area for the agricultural production of
cereals and oilseeds is highly vulnerable to drought.
Comparing the planted area with the 2016–17
Droughts
campaign shows considerable exposure in Córdoba
The capital departments with the highest probability (37 percent of the planted area in the province),
of exposure to meteorological drought and the highest Entre Ríos (40 percent), and Santa Fe (53 percent).
 102 ARGENTINA: VALUING WATER

Map 5.5 Departments with a High Probability of Drought and Agricultural Production Areas
a. At high risk of drought b. Key for agricultural production

Production (tn/km2)
0–50
50–100
SPI3 <–1 100–200
0.130–0.135 200–400
0.135–0.140 400–800
0.140–0.170 800–1500
0.170–0.204
Departments

Source: Based on Center for Survey and Evaluation of Agricultural and Natural Resources (2019) 2016/2017 data from the Ministry of Agriculture,
Animal Husbandry, and Fishing.
Note: Departments are highlighted whose probability of being in a drought scenario (standardized precipitation index SPI3 < −1) is greater than 0.13.

Nationally, 19 percent of the planted area in the Figure 5.5 Annual Losses Projected as Climate
country faces a high probability of drought Change Impedes Irrigation
(map 5.5). 400

350
Droughts and Irrigated Agriculture
300
Like rainfed agriculture, irrigated agriculture is exposed
250
US$ million

to droughts. Irrigated agriculture faces a future of

decreased water availability in most of the country’s 200
macrobasins (see chapter 2) due to recurring dry spells 150
likely to increase due to climate change. With current
infrastructure and water use efficiency, increased 100
temperatures and evapotranspiration would make it 50
impossible to maintain the current 2.1 million irrigated
0
hectares. If no action is taken, about 25 percent of the
Patagonia Cuyo Centro NOA NEA
area irrigated today would be compromised by climate
change, causing annual losses of US$837 million Argentinian regions
(0.2 percent of current GDP). Most of these losses Source: Update of the FAO and PROSAP study (2015), with climate
would occur in the Cuyo region (figure 5.5). change scenarios analyzed in chapter 2 and appendix F.
 103

Droughts and Water Supply and generation in 2018 grew 0.3 percent from the
year before—one reason for these small changes
An analysis of water supply services in the most arid
seems to be regional diversification in generation.
cities in Argentina found high levels of exposure to
By comparison, Uruguay has a similar share of
droughts due to operational inefficiencies. These cities
hydropower in its total installed capacity (about a
(the capitals of Catamarca, Jujuy, La Rioja, Mendoza,
third), but its generation comes from just two basins,
Salta, and San Juan provinces) are in macrobasins
mostly from the Uruguay River (figure 5.6).
where the net water balance is negative. They exploit
groundwater, sometimes at unsustainable rates. In Uruguay, the 2008 drought reduced generation
Catamarca and La Rioja produce drinking water at by 44 percent, while in Argentina, the impact was
extraordinarily high rates of 845 and 898 liters per insignificant (figure 5.7). But in Argentina’s Entre Ríos
capita per person, respectively (table 5.1). Other cities province, which shares the Salto Grande dam with
have rates of nonrevenue water as high as 50 percent. Uruguay, generation fell 34 percent. In Argentina, the
Water sources in those six provinces are diverse—Salta fall was compensated by generation in other regions.
and Catamarca rely on groundwater for more than
70 percent of the supply. Droughts and River Navigation
Excessive consumption is generally due to flat tariffs The effects of regional droughts on navigation in the
(instead of volume-based, metered ones), which La Plata Basin are complex. Some 72 percent of the
provide no incentive to save water. High levels of basin’s territory falls in four countries upstream of
nonrevenue water, whether due to physical losses or Argentina, so droughts must be evaluated regionally.
nonpayment, also contribute. Major dams, such as the Itaipú between Argentina,
Brazil, and Paraguay and the Salto Grande dam
Conflicts and other harm due to scarcity in these areas
between Argentina and Uruguay play a large role in
are likely if strategies for demand management and
regulating river flow, so the downstream flows depend
source diversification are not followed. The increased
on the strategies for operating those dams. To date,
aridity projected due to climate change and competition
no prolonged or substantial economic impacts have
with other high water consumption sectors—which also
resulted from limited navigability due to low water
present major inefficiencies—increase this risk.
in the Paraná River downstream from Santa Fe.23
But in late 2019, extremely low levels were found
Droughts and Hydropower in the navigable sections near the river’s mouth, and
The geographical dispersion of hydropower they continued during the first months of 2020.24
generation in Argentina over several basins Hydrological analyses attributed the low levels to
reduces the sector’s overall exposure to droughts. reduced rainfall in the upper basin (map 5.6). Reduced
The droughts of 2008 and 2018, though they water availability due to climate change will most
greatly reduced agricultural production (the 2008 likely increase these problems and their economic
drought affecting 2009 production), did not change impacts in the future. The complexity to determine
hydroelectric generation much. Generation in 2008 these impacts also resides in the fact that there are
decreased by 1.1 percent from the year before, significant levels of regulation upstream which might
help mitigate the effects of excesses and droughts.

Table 5.1 Production of Drinking Water in the Provinces with Greater Water Stress

Province Population Production Coverage Nonrevenue Micro- Production by source Population

(thousands) per capita water metering (millions of cubic meters growth rate
per year) 2010–18a
Total Served l/inh/day % % % Surface Ground Total %
Catamarca 226 219 845 97 45 27 18.2 49.5 67.6 1.10
La Rioja 276 268 898 92 35 52 35.2 52.8 88.0 1.16
Jujuy 745 693 447 93 48 81 96.1 16.9 113.0 1.12
Mendoza 1,886 1,697 444 90 — — 197.9 76.9 274.8 1.01
Salta 1,274 1,146 594 90 50 27 74.6 174.1 248.7 1.12
San Juan 764 581 488 76 30 1.5 — — 103.5 0.96
Source: Data provided by the main concession companies, 2019. The population figures match the companies’ service area. Nonrevenue water
values are gross estimates due to the low levels of macro and micro-measurement.
Note: — = Not available.
a. National Institute of Statistics and Census of Argentina data.
 104 ARGENTINA: VALUING WATER

Figure 5.6 River Basins Providing Hydropower in Argentina and Uruguay

a. Argentina b. Uruguay

NOA 1.9%
PATAGONIA 4.5%

NER 26.7% Río Negro

39%

COMAHUE
41.1%

Río Uruguay
CUYO 9.7% 61%

CENTRO 7.9%

LITORAL/BUENOS AIRES
8.2%

Source: Ministry of Productive Development (Argentina) and UTE (Uruguay).

Figure 5.7 Hydroelectric Generation in Argentina and Uruguay, 2002–18

110
% of hydroelectric generation with

100
90
respect to 2002

80
70
60
50
40
30
02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18
20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

Year
Uruguay Argentina

Source: Ministry of Productive Development and CAMMESA (Argentina); UTE (Uruguay).

Note: 2002 = 100 percent.

Dam Safety multiplicity of actors, the political-institutional ups and

downs and a transfer process throughout the history
Dam safety in Argentina is an area that needs to be of dams, dikes, and reservoirs, led to a dispersion and
strengthened, and important recent progress has fragmentation of their operation, control, and auditing,
been made. There are more than 700 dams or dikes together with the absence of a centralized, unified,
in Argentina,17 220 of them large.18 A recent study on and accessible registry of all this type of infrastructure
dam safety in Argentina, including an analysis of the (  Juncal 2019).
regulation and supervision of dam security, shows
shortcomings related, mainly, with its normative Large provinces such as Mendoza and Córdoba
framework, the regulatory design, the imprecise have organizations with a long tradition and, in
delimitation of responsibilities between jurisdictions, addition, they have the resources to simultaneously
the multiplicity of dimensions involved, and the scarcity attend to water and hydroelectric management,
of capacities and resources (Juncal 2019). As a result of which differentiates them from other provinces.
a complex and dispersed institutional framework, the When considering the dams that are under the
 105

jurisdiction of the ORSEP, a reduced number of basin proposed law does not interfere with provinces’
organizations are those that interact: Committee of right to use and manage water resources.21
the Juramento Salado River Basin, Committee of the
In line with the absence of a centralized and unified
Salí Dulce River Basin, Interjurisdictional Committee
registry on water infrastructure in the country,
of the Chubut River Basin, and the Interjurisdictional
the creation of the National Register of Dams and
Authority of the Neuquén, Limay and Negro River
Technical Archives (Article 9) is proposed under the
Basin (which has had a very close relationship with
orbit of the Ministry of Infrastructure and Water Policy.
the ORSEP) (  Juncal 2019).
This also establishes the need to work with SINAGIR
The national government may assume the (article 22), to achieve effective coordination in
oversight function of provincial-owned hydraulic comprehensive risk management. This proposal once
or hydroelectric projects, by agreement between again confirms the country’s fragmented regulations
parties. Within this framework, ORSEP signs (Juncal 2019), although it represents a notable advance
framework agreements and complementary acts by bringing together various actors, and establishing
with some provinces and other entities with various a Standardization Commission in charge of drafting
objectives, including inter-institutional cooperation, technical regulations for dam safety, composed
technical assistance, and collaboration programs. of representatives of all provinces, COHIFE, and
In Argentina, ordinary floods and dam incidents other competent bodies, under the coordination of
represent a risk for approximately 4 million people. ORSEP (articles 14 and 15). The national enforcement
Also at risk are drinking water supply services authority is ORSEP, which can extend its jurisdiction
(for about 8 million people) and the supply of to the rest of the territory in accordance with the
electricity (for about 14 million people), and up to decisions of the provinces and the CABA, or even of
1.5 million productive hectares.19 the basin organizations for interjurisdictional works
(Article 20).22
Laws of various types have been promoted for the
safety of dams, dikes, and reservoirs, but none was Current hydropower production could vary as a
successfully passed, which reflects the difficulty of consequence of climate change, and greater alterations
generating consensus among the multiple actors could be generated in the production of this type of
involved (Juncal 2019). A new proposal focuses energy due to lower levels of water availability, as
on a national policy for dam safety, inviting the already observed in concrete examples mentioned in
provinces to adhere to it for the purposes of its chapter 4.
application in their respective jurisdictions.20 This

Map 5.6 Unusual Precipitation Patterns (mm) in the La Plata Basin, September 2019–April 2020

15°S 600
500
400
SMN 300
20°S 200
100
50
0
25°S –50
–100
–200
–300
30°S
–400
–500
–600
–800
35°S
–1000

70°O 65°O 60°O 55°O 50°O 45°O 50°O

Source: National Meteorology Service.

 106 ARGENTINA: VALUING WATER

Water Service Performance treatment.26 Among countries in LAC, Argentina’s rate

of wastewater treatment is higher only than those of
Water Supply and Sanitation Costa Rica, Guatemala, Haiti, Honduras, Panama, and
Paraguay (figure 5.8).
Coverage and Service Quality
Levels of piped drinking water and sewerage coverage The effort to increase collection, treatment, and
in Argentina are similar to the average in LAC, but both proper final discharge of domestic wastewater in
are growing slowly.25 Only an estimated 20 percent the Matanza Riachuelo Basin in the Buenos Aires
of collected sewage effluents is treated (DNAPyS metropolitan area illustrates an integrated approach at
2017). Altogether, only 11 percent of the population scale to the sanitation challenge and water pollution.
would meet SDG indicator 6.2.1, which measures This US$2 billion program, in an advanced stage of
the population connected to sewerage and with implementation, will collect, convey, adequately treat,

Figure 5.8 Access to Piped Water (Upper Panel), and to Sewerage and Wastewater Treatment
(Lower Panel) in Latin America
100
90
80
70
60
Percent

50
40
30
20
10
0
ico

ic
a

ca

ba
ia

ile

ala

as

ay

y
r

rú
il

do

gu
in

bi

do

ua
bl
as
liv

m
Ri
Ch

ur
Cu

Pe
gu
éx
m
nt

em

pu
lva

ra

na

ug
ua
Br
Bo

nd
sta
lo
ge

ra
M

ca

Re
Pa
Ec

Ur
Sa

at
Co

Ho

Pa
Ar

Co

Ni
Gu

n
El

ica
in
m
Do
Latin American Countries
Water network coverage Average 82.9 percent

100
90
80
70
60
Percent

50
40
30
20
10
0
a

ala

ico

ay

ic

y
ia

il

ile

ca

r
do

rú
ra
as

ua
in

gu

am
bi

bl
liv

ad
Ri

gu
Ch

Pe
éx
du
em
om
nt

ua
Br

pu

ug
ra
Bo

n
lv
sta

ra
ge

M
n

ca

Pa
Ec

Re

Ur
Sa

at
l

Ho

Pa
Co
Ar

Co

Ni
Gu

n
El

ica
in
m
Do

Latin American Countries

Treated sewage Untreated sewage Average 49 percent

Source: Based on data from official statistical institutes of each country (censuses or household surveys). See appendix C for data and
methodology. Effluent treatment and water quality based on data from official publications of specialized agencies or UNICEF Multiple Indicator
Cluster Survey. For water quality by network, the following percentages were surveyed, expressed in terms of total population covered and not by
water per network: Argentina, 78.8 percent; Brazil, 75.8; Colombia, 68.5; Honduras, 32.0; Mexico, 69.2; Paraguay, 36.8; Peru, 46.3.
 107

and dispose of about 2.1 million cubic meters a day of of informality is a major source of groundwater
domestic effluents when complete, benefiting around contamination (Calcagno, Mendiburo, and Gaviño
4.3 million inhabitants, and will release transport and Novillo 2000), which increases the health risks of the
treatment capacity to the treatment plant located in population not connected to a piped water supply
Berazategui, making room for future effluents amid system (World Bank 2021). Septic tanks are not
the expansion of sanitation networks in the southern systematically regulated: a few utilities outsource the
part of the metropolitan area. The program will also service, but in most cases private service providers
permit improved and more secure operation of the operate with little control (World Bank 2019d). Even
sewerage system, which is currently working beyond when a septic tank has been emptied and septage
its capacity with no flexibility for maintenance, repairs, removed, it is possible that not all waste receives
or contingencies.27 appropriate treatment, and much goes directly into
storm drains or surface water bodies.
A fecal waste flow diagram at a national scale
shows deficiencies, especially for the population not Since COVID-19 is present in sewage effluents,
connected to the sewer network (figure 5.9). These analyzing them offers an opportunity for early
deficiencies are due to the lack or malfunction of detection. Because this can cover an entire population,
containment facilities for emptying, transport, efficient not just those who are tested specifically for the
treatment, and proper discharge. virus, it has some advantages as a warning system
for presence of the virus or to test social distance and
In general, Argentina pays little attention to on-site quarantine measures in specific areas.29 AySA is already
sanitation. Although almost half the population is a pioneer, in partnership with other large utilities
not connected to the sewer network, the public around the world, in conducting wastewater-based
debate focuses mainly on extending the network, epidemiology along these lines (World Bank 2021).
not on improving the design, construction, operation,
and treatment of septic tanks. While sewers are The quality of piped water service, at least from the
appropriate for densely populated urban contexts, main provincial operators, is acceptable (figure 5.10).
given the high cost of sewage networks and the size But these operators cover only 80 percent of the
of the coverage gap, alternative solutions are worthy population. No systematic data describe other,
of consideration, at least in urban areas with lower secondary operators, but it is likely that their
densities.28 There is no integrated database on tank performance is worse than that of the main utilities.
truck operators collecting and transporting septage. Even this analysis, focused on the main operators, finds
Absorbent informal pits are also common. This level notable differences in performance indicators.

Figure 5.9 Fecal Waste Flow Diagram, 2018

Reception and Transportation, withdrawal Reuse and final

confinement and treatment disposal

11%
With Safe reuse and final
treatment Proper final < 20% disposal of domestic
discharge
effluents
53% Sewage 42%
Without
treatment

?% Withdrawal with
Total
treatment
population
100% Septic ?% Withdrawal
46.5% Discharge of
tank without treatment Inappropriate
> 80% domestic
final discharge
effluents at risk
?% No withdrawal

< 0.5% Open

defecation

Source: Based on projections from the National Institute of Statistics and Census 2010, Permanent Household Survey 2014/2018, and Annual
Urban Household Survey 2010/2014.
 108 ARGENTINA: VALUING WATER

Figure 5.10 Piped Water Continuity and Figure 5.11 Piped Water Service Operating
Quality Service Indicators—Main Providers Performance Indicators—Main Providers
90
25 0.95 80
70

% of water samples of potable quality

Hours/day (Service continuity)

20 60

Percent
50
40 80%
15
30
95% 0.94
23 20 45%
36%
10 25%
10

94% 0
5 Micro-metering Water losses
coverage
Piped water service performance indicators
0 0.93
Continuity of service Drinking water quality ARG mean (10%) LAC
(hours/day) tests compliant (percent)
Source: Based on data from the DNAPyS, and ERAS data for reference
ARG LAC utilities in LAC.
Note: Network losses are based on estimates by the operators,
Source: Based on DNAPyS and Regulatory Agency for Water and not actual measurements. The information on Argentina covers
Sanitation (Ente Regulador de Agua y Saneamiento, ERAS) data for 20 providers for 2016 or 2017. The information for LAC comes
reference utilities in LAC. from the 2017 Regulatory Agency for Water and Sanitation report
Note: The information on Argentina covers 10 providers each for with 2016 data for 25 providers for water loss and 19 providers
continuity and water analysis (in 2016 or 2017). The information for micro-measurement: Colombia 6 (5 for micro-measurement),
on LAC comes from the 2017 Regulatory Agency for Water and Ecuador 2 (1 for micro-measurement), Uruguay 2 for both water
Sanitation report with data on 15 providers in 2016: 2 in Argentina, loss and micro-measurement, Costa Rica 1 for both, Peru 4 for
5 in Brazil, 3 in Chile, 1 in Costa Rica, 1 in Ecuador, 1 in Panama, both, Panama 1 (0 for micro-measurement), Argentina (AYSA)
and 2 in Uruguay. ARG = Argentina; LAC = Latin America and the 1 for both, Chile 3 (0 for micro-measurement), Brazil 5 for both.
Caribbean. ARG = Argentina; LAC = Latin America and the Caribbean.

Sewer networks are often designed as separate that of other operators in LAC. Argentina has very
from storm drains, but in many urban areas without low micro-metering rates (figure 5.11). So, operators
adequate storm drains, the sewer network becomes a cannot apply volumetric-metered tariffs, making it
malfunctioning combined storm and sewerage network difficult to link operating costs to tariff revenues—a
(a problem not exclusive to Argentina). During and major source of managerial inefficiency. Without
after rainfall, rainwater and wastewater flows circulate micro-metering, it is very difficult to control network
together in sanitation pipes, which do not have losses (estimated to be very high) and operating
enough capacity because they were not designed for costs. The amount of water produced suggests the
combined flows. So, the sewers fill up and discharges challenge—an average of 560 liters per inhabitant per
occur, usually to rivers or coasts. And treatment plants’ day, against the Latin American average of 345, and an
performance may decline considerably when they international reference value of 200 liters per person
receive effluents with concentrations of organic matter per day. If tariffs or unpredictable provincial subsidies
that vary greatly, depending on whether rain has do not cover operating costs, operators may skimp
diluted them or not (World Bank 2019d). on maintaining infrastructure, considerably shortening
its life.
Operational and Financial Efficiency In Argentina, the tariff revenues of most providers
The institutional challenges described in chapter do not cover operating and maintenance costs. For
4 impede economies of scale in the water supply the main operators, the recovery of operating costs
and sanitation service sector. The system presents through tariff revenues is 83 percent on average.
clear inefficiencies resulting in high costs that offer Variability is high: the best-performing provider,
opportunities for improvement. which recovers operating costs, surpasses the worst-
performing one by 5.4 times. The best-performing
The operational and managerial efficiency of provider’s tariff collection efficiency is 1.6 times that
Argentina’s main operators is low compared with of the worst-performing provider (table 5.2). Subsidies
 109

Table 5.2 Financial Performance Indicators—Main Providers

Financial performance Financial self- Tariff collection Subsidies/Revenues Investments/

sufficiencya efficiencyb Revenues
Maximum 130% 96% 81% 0%
Minimum 24% 59% 0% 50%
Trimmed mean (10%) 83% 83% 28% 18%
Median 80% 85% 24% 11%
Number of providers 17 17 17 17
Source: Original compilation based on data from the financial statements of providers (more details in appendix C).
a. Collection on operating and maintenance costs.
b. Collection/billing.

are inversely proportional to financial self-sufficiency. be unable.30 Such unaffordability could be a reason for
Actual collection of amounts billed, an indicator of the average default rate of approximately 15 percent.
commercial efficiency, is also a fairly low 83 percent. And if service were extended to the lowest-income
population (many of whom are currently not covered),
The cost range is wide among providers, as maximum
the mismatch between tariffs and ability to pay would
costs are 4.7 times the minimum costs. With staff
be even greater. The cost structure and operating
costs as the most important, the dispersion of the
efficiency of the utilities would need to be streamlined,
number of employees per 1,000 water connections is
and the targeting of subsidies made more accurate, or
5.3 for Argentine providers. The Argentine median is
else tariffs would not cover much of the investment.31
3.02 employees per 1,000 connections, compared with
2.82 for all Latin American providers (figure 5.12).
Utilities’ incapacity and lack of a planning culture also
It is not possible to conclude that tariffs are determined reduce performance. The low capacity in national and
by real costs, or that they are efficient. Average billing provincial institutions is also found in the managerial
shows even higher dispersion than costs—5.7 times. and operational areas of many provincial water supply
Billing rates are not correlated with the sizes of the and sanitation operators. Most provincial utilities
providers. Asset management plans describing real have weak capacities to properly bill users, manage
operating and maintenance costs are largely absent, human resources, address nonrevenue water, increase
as are cost-efficiency studies to determine tariffs. transparency, and improve customer service. The lack
And the sector’s efficiency indicators are far from the of a planning culture in a context of low operating
levels common in the LAC region. These characteristics efficiency often leads utilities to inappropriate
suggest that tariffs are based more on provincial investment choices, such as building a new treatment
treasury department fiscal needs—the lower the ability plant to produce water because funds are available
to subsidize, the higher the tariff—than on the cost of for it, rather than investing in reducing distribution
providing efficient service or users’ ability to pay. network leaks. Such erroneous decisions are usually
associated with a financing offer unconnected with an
People’s limited ability to pay leads to illegal adequate diagnosis, or an offer that makes it easier
connections or lower collection rates, not to reduced to access funds for expansion than for maintaining or
consumption. There are no studies on affordability repairing assets.
available. The demand for drinking water has low
elasticity with respect to price, user disposable income, If utilities could achieve efficiencies by lowering
and economic activity. Indeed, since many providers do operating and maintenance costs and increasing
not invoice by consumption unit, reduced consumption bill collection, the corresponding savings to apply to
does not affect service cost (Seillant 2011). investments could be as much as US$0.8 billion a year
The relevance of direct subsidies is minor, implying (figure 5.13). That would reduce the financing gap for
that their efficiency is also low. capital spending (calculated in chapter 4) to US$1.1
billion for expanding infrastructure (required to reach
If billing matched actual average operating and the SDGs) – difference between the second and third
maintenance costs, about 27 percent of the population column in Figure 5.13 or US$2.4 billion, including
would have difficulty paying. If it were based on the replacements.32
average costs of higher-cost providers, 50 percent of
users would be unable to pay, and if it were based on The COVID–19 pandemic puts even more pressure on
the costs of lower-cost providers, 12 percent would still providers. During the months with stricter isolation
 110 ARGENTINA: VALUING WATER

Figure 5.12 Employees per 1,000 Drinking Water Connections, Argentine and Other Reference Latin
American Providers
7
Employees per 1000 drinking water connection

3 2.82

1
7,10
6,56
6,21
5,65
4,76
4,57
4,33
4,21
3,96
3.85
3.64
3.51
3.50
3.45
3.37
3.37
3.20
3.17
3.02
3.00
2.99
2.93
2.94
2.83
2.82
2.68
2.77
2.67
2.64
2.55
2.47
2.98
2.96
2.91
2.30
2.22
2.02
1.98
1.89
1.80
1.74
1.47
1.55
1.33
1.27
1.25
1.00
0.90
0.81
0
12 18 E O H I 10 14 J 15 1 11 AD R AC AA 19 4 2 B 5 G 8 16 9 6 W T 20 Q C S 3 13 Y F A X D AB V P U 7 M N Z L K
Providers
Agentine Providers Latin America Providers Median

Source: Argentinian Association of Water Regulatory Agencies, DNAPyS, and World Bank team for Argentina. Urban Water and Sanitation
Information System for Brazil. Superintendency of Sanitary Services for Chile. Association of Regulatory Agencies for Water and Sanitation for other
countries (Molinari 2019).
Note: Dark blue—Argentine providers (19), blue bars—reference providers in the rest of Latin America (Brazil, 12; Chile, 3; Colombia, 6;
Costa Rica 1; Ecuador, 2; Panama, 1; Peru, 4; Uruguay, 1). Median for all, 2.82; median for Argentina, 3.02; Median for the reference providers in
the rest of Latin America: 2.43.

Figure 5.13 Possible Utility Efficiencies and Investments

4,000

3,500

3,000

2,500
Million US$

2,000

1,500

1,000

500

0
Actual investment Potential investment Required for SDG
with efficiency
Billing increase Collection efficiency Costs reduction Current investments Expansion

Source: World Bank team (see appendix C for details). The efficiency improvements were calculated for 16 main providers, assuming that they at
least reach the efficiency ratios corresponding to the 5th best provider for each of the three indicators (cost, collection efficiency, and average billing).
Note: SDG = Sustainable Development Goal.

measures, there were sharp drops in collections, of Circular economy opportunities, which could
30–40 percent, due to the closure of cash collection advance cost recovery, remain untapped. In
points. Additionally, costs increased both due to the Argentina, such opportunities are receiving greater
need to supply areas not reached by the networks attention.34 They offer an alternative to avoid the
and by that required to protect staff and users. Finally discharge of wastewater into receiving bodies, which
there was a significant loss in the real value of the rate is of special interest in endorheic zones or areas
as a result of a high level of inflation. Rates remained where water scarcity affects the development of
at nominal values due to the sharp drop in the other activities. There is still no uniform regulatory
population’s income, as a consequence of lost hours framework at the national level, although the
and sources of work.33 subject has been under discussion for years
 111

(Peasey et al. 2000; Gatto D’Andrea et al. 2015). Patagonia, 45,000 hectares (36 percent of the
Certain water-scarce areas and irrigation traditions irrigated area); while the Pampean region and NEA
have well-established and regulated practices for present approximately 170,500 hectares affected
reusing wastewater in agriculture (for restricted (27 percent of the area).36
crops), including clear requirements for diluting
treated wastewater.35 Little has been done to recover Increasing water stress and a lack of incentives for
energy through biogas digestion in wastewater greater efficiency can lead to tension, conflict, and
treatment plants or to use stabilized sludge and downstream externalities. A lack of comprehensive
derived nutrients for fertilizer. water planning could be one of the causes to overexploit
aquifers in irrigated areas and could spur races to
the bottom that smaller producers could lose, when
Irrigation
pumping water from great depths becomes unprofitable
The profitability of irrigated agriculture depends on the for them.37 Overexploiting groundwater could also
development, performance, and efficiency of irrigation have cascade effects. Argentina does not have clear
and on national macroeconomic conditions, exchange mechanisms to promote more efficient intraplot water
and inflation rates, and access to global markets. use by installing new irrigation technologies.38
Across regions and provinces, water scarcity, and also
the cultural, agroecological, and economic context
Financial Sustainability of Irrigation
shape irrigation. In areas that produce high-value crops
and support food processing industries for international Although the prices of water and related services should
markets (such as Alto Valle, the Cuyo region, Salta, allow total cost recovery, this does not always happen.
and Tucumán), the value of water is high, and Water use efficiency is based not only on the available
irrigation technology, infrastructure, and management irrigation technology and infrastructure but on the price,
are more efficient. They are also efficient where water availability, and on the irrigator’s technical know-
complementary irrigation in critical periods for high- how. Mendoza province collects tariffs from water
value crops creates high economic returns—for corn, rights’ holders (for rights-to-use) covering operation,
seeds, peanuts, soybeans, and potatoes in Cordoba, maintenance, and administration costs plus the cost
western and southeast Buenos Aires, and the southern of infrastructure for investments the agency incurs to
Santa Fe provinces. But in regions where irrigated deliver water. Río Negro province also covers the costs
agriculture is not as profitable (southern Buenos Aires, of water administration through tariffs. Although cost
northern Cordoba, La Pampa, Santiago del Estero, and recovery is in the Guiding Principles of Water Policy,
the Northeast region), the quality of infrastructure, adopted in most modern provincial codes, the rate of
management, operation and maintenance investments, collecting water fees depends on the socioeconomic
user participation, and general performance are conditions and institutional capacity in each province,
relatively low. leading to disparities. Inadequate price-setting and the
lack of financial sustainability can result in inadequate
Irrigated water use efficiency is, in general, low—34 maintenance of water systems, reducing the lifespan of
percent overall, 65 percent in collective networks, the related infrastructure.
and 52 percent in intraplot systems (FAO and
PROSAP 2015). At the micro scale, the main causes
of inefficiency are the large number of precarious Notes
water intakes, infiltration in common facilities due
1. For example, under the Interjurisdictional Basin Authority,
to deteriorated pipes, little monitoring and control covering the basins of the Limay, Negro, and Neuquén
of water flows supplied to farmers, reflected, for rivers (http://www.aic.gob.ar/sitio/lacuenca, consulted
instance, in the fixed shift system, which does not in March 2021), and the Interjurisdictional Committee
adjust water availability to crop needs and so does of the Colorado River (https://www.coirco.gov.ar/,
not foster efficient water use. Inefficient irrigation ­consulted in March 2021).
and drainage can increase groundwater levels, 2. See appendix D.
exacerbating soil salinization and waterlogging.
According to the INTA study, included in the FAO- 3. The guiding principles state: “Except water for basic hu-
PROSAP study, approximately 421,000 hectares man consumption—the demand for which is considered a
priority over all the other uses—the rest of the demands
are affected in the country, which represents 23.5
will be met as per the priorities established by each juris-
percent of the total irrigated area. The breakdown diction.” The prioritization of water uses defined by each
of the most affected areas by region is as follows: jurisdiction is used to allocate water rights between two
the NOA has approximately 55,000 affected hectares competitive sectors (who gets water first). These criteria
(11 percent of the irrigated area); Cuyo, 142,000 depend on the socioeconomic and hydrological conditions
hectares (28.3 percent of the irrigated area); of each region, basin, or province.
 112 ARGENTINA: VALUING WATER

4. Institutional Evaluation Matrix for Irrigation Systems, weaknesses of the current institutional framework to
prepared within the framework of PROSAP (PROSAP-UTF attend the critical issues, including strengthening and in-
/ ARG / 017 / ARG), which evaluates the situation of stitutional coordination actions to ­facilitate the integrat-
each of the provinces, in matters directly associated with ed management of water ­resources at the basin level
compliance with the PRPH (for example: institutional and guide development processes toward sustainable
management, information system, water valuation, etc.). conditions (CIC Plata 2017).
The matrix negatively evaluates the level of application
of these principles. 11. Strategic Action Program implementation project, avail-
able at: https://cicplata.org/es/proyecto-implementacion​
5. Federal Agreement on Water, COHIFE 2003: a series of -pae/ (consulted in March 2021).
good practices for integrated water resource management.
12. Among the main challenges identified by the Strategic
6. For instance, the SIPH has carried out a series of ­activities Action Plan are: the existence of polluting sources from
aimed at the systematization and organization of agricultural uses and domestic and industrial discharges;
dispersed information and has developed a guide of per- insufficient knowledge of the vulnerability of the system
formance indicators and indices for water and sanitation related to risk areas and recharge areas; complete and
providers inserted within the National Information System effective monitoring deficiency; deficiency in inventories,
(SDG 6.1 and 6.2); and will also provide the guidelines for studies and research; lack of management of the use of
the definition of the goal criteria for water quality param- groundwater; deficiency of environmental management
eters (SDG target 6.3), carrying out the necessary steps instruments; insufficient normative and regulatory frame-
for the provinces to set their own goals (PNUD 2018). work for drilling; insufficient integration of land, water
resources and environmental legislation in each country
7. Backgrounder Fish & Wildlife, Oregon Department of Fish and between countries; lack of cross-border institutional
and Wildlife, Instream Water Rights, Rev. 1/22/97. coordination for control and shared management; insuffi-
cient culture, social awareness, and training in the use of
8. Promoting and favoring exchange between COFEMA and
groundwater and its economic-environmental valuation
COHIFE is important, even more so when the coherence
and the scarce participation of society.
of joint policies on water resources and environmental
policies is required, as is the case with the draft Law 13. The Emergency Events Database—Université Catholique
on Wetlands, on which COHIFE presented its proposals. de Louvain.
The revisions made are available at: http://www.cohife​
.org/advf​/documentos/2016/09/57d088b8b2694​ 14. https://www.fathom.global/.
.pdf; http://www​.cohife.org/advf/documentos​ 15. World Bank team, based on the Fathom flood model and
/2016/09/57d088b8a6b01​.pdf; http://icaa.gov.ar​ EPH 2018.
/humedales-e-impacto-ambiental-corrientes-participo​
-comisiones-del-consejo-federal-medio-ambiente/; 16. See chapter 2 for the methodology, data, and criteria
and https://www.senado.gob.ar/upload/20194.pdf used to assess meteorological droughts
(consulted in March 2021).
17. Reservoir dams, weirs, embankments, tailing dams,
9. For instance, the Province of Buenos Aires is developing ponds, among others; SIPH-ORSEP inventory. Available
a Wetlands Management Plan for the Salado River Basin at: https://www.argentina.gob.ar/sites/default/files/10​
with the support of the World Bank. Project Appraisal -la_normativa_de_seguridad_de_presas_en_argentina​
Document available at: http://documents1.worldbank​ .pdf (consulted in March 2021).
.org/curated/en/957721491703233027/pdf/Project​ 18. Presentation of the dam safety law proposal. Available
-Appraisal-Document-PAD-P161798-March-16-from​-VV​ at: https://www.argentina.gob.ar/sites/default/files/02​
-03-23-2017-03212017.pdf (consulted in March 2021). _-_rodolfo_dalmati_-_proyecto_ley_de_seguridad_de​
10. These include activities on the integration, process- _presas.pdf (consulted in March 2021).
ing, and dissemination of information on water rights 19. Presentation of the dam safety law proposal.
management in the context of climate variability and
change, including systems of hydro environmental alert 20. Presentation of the dam safety law proposal.
and monitoring; exploiting the potential of water re-
21. The objectives of the law include to: guarantee the safety
sources and strengthening the integration objectives of
of dams, reservoirs, and dikes at all stages (construc-
the countries of the basin through actions related to the
tion, filling, operation or exploitation and deactivation);
development and sustainability of energy potential and
promote the safety of the downstream population and
river transport; environmental protection and rehabilita-
minimize the risk to the population and the environment;
tion by strengthening ecosystem conservation mech-
provide information on dam safety management; ensure
anisms and preventing and controlling environmental
compliance with safety standards; regulate safety actions
degradation; actions to educate, raise awareness, train,
and standards in the planning, project, construction,
disseminate information, and prepare society to achieve
filling, operation and execution phases; promote the
greater and better participation in solving critical issues;
monitoring and follow-up of security actions; generate
supporting and promoting research, technological
conditions to expand the universe of dam control; pro-
development and innovation for the generation of
mote a culture of dam safety and risk management.
information and technologies of interest; and resolving
 113

22. The SIPH has created a Dam Management Plan jointly with of low urban consolidation and low real estate valuation.
INA, the provincial water authorities and ORSEP that adopts They present social vulnerability associated with low edu-
an integral approach considering all uses and dam safety. cational levels, high levels of dependency, and low levels
of participation in the formal labor market.
23. In 2011–40, it is possible to observe a negative anomaly
trend in precipitation in a large part of the CdP, mainly 29. Available at: www.nature.com/articles/d41586-020​
during the summer. Clearer negative anomalies are found -00973-x (consulted in March 2021).
in the summer months in the Alto Paraná sub-basin.
Regarding its possible impact on the flow of the rivers 30. Capacity to pay for water and sewer services was calcu-
of the CdP, the results of the studies carried out—for lated at 5 percent of family income. The values corre-
the periods 2011–40, 2041–70 and 2071–100—indicate spond to the fourth quarter of 2018.
mixed results: (1) increase in average and minimum
31. In the case of AYSA, as of December 2018, 10.5 ­percent
flows in the Uruguay river, and an initial reduction in the
of residential users were covered by the social rate
average flow, followed by a subsequent increase in the
(­considering the inhabitants per dwelling, surely the
northern region of the Paraná Basin and in the Upper
­percentage of the population reached is somewhat
Paraguay region. On the other hand, for minimum flows,
higher) and the current rate was not enough to cover
a reduction is expected. The projections also indicate an
operation and maintenance costs; a higher rate should
increase in the average and minimum flows in the Chaco
provide for more users reached by the social rate.
region, represented by the Bermejo and Pilcomayo rivers,
and an initial reduction in the average flow, followed by 32. See appendix C for details.
an increase with respect to the reference period in the
Paraná River, in Itaipú. In the middle and lower reaches 33. Based on inquiries made to providers (World Bank 2021,
of the Paraná River, it is expected that both the average for the case of AySA) and National Institute of Statistics
and minimum flows will initially decrease, and then and Census, regarding unemployment data.
increase in the future. Also the reduction of precipitation
and flow in the upper basins directly affect hydroelectric 34. For instance, experiences of wastewater use can be
generation, considering that in the southeast of Brazil 60 found in some areas of the provinces of Mendoza, La
percent of its generation is concentrated in that country Pampa, Salta, Chubut, Cordoba, Rio Negro, among others.
and, in turn, that a large part of the flows that feed the
35. In the province of Mendoza, the restricted water supply
hydroelectric uses in the international sections originate
has led to various experiences of wastewater use for
in the upper basins (CIC Plata 2017).
­agricultural activities, regulated by the General Depart-
24. There is no systematic study assessing the higher costs in ment of Irrigation. The province has its own legislation
river navigation originated by lower river levels, yet this and crops such as vines, vegetables, and fodder have
phenomenon has various effects that include the reduc- been irrigated for several decades.
tion of cargo capacity in ships, delays, stranding, and ac-
36. The cost of drainage improvements and soil degradation
cidents. However, despite these costs, the transportation
recovery have been considered as part of the proposed
capacity of the Hidrovía was not affected; during the first
modernization investments.
4 months of the year grains and by-products exported by
the ports of the Hidrovía grew 12.8 percent, compared to 37. Saldi and Petz (2015) and ECLAC (2018) warn about
the same period as the previous year, while in the rest of ­potential damage due to the lack of comprehensive
the ports they fell 0.3 percent. water planning. (Saldi and Petz 2015) (ECLAC 2018)
25. In Argentina, piped water is the standard for safe access 38. In Spain, public programs support the technicalization
to water, and sewerage is the standard for sanitation. of producers. The water saved by investing in greater
26. This figure is derived from the combination of the irrigation efficiency increases the water available for
percentage of the population connected to a sewerage other uses (usually environmental purposes). In Men-
systems—53 percent for 2018, derived from projec- doza, technicalization has no incentives because water
tions from the National Institute of Statistics and Census rights are defined by area. Only when the water rights
(2010), Permanent Household Survey EPH 2014/2018, granted went beyond the actual area irrigated would the
and Annual Urban Household Survey EAHU 2010/2014. producer have an incentive to invest in efficiency in order
to extend the irrigated area.
27. Matanza-Riachuelo Basin Sustainable Development Proj-
ect, World Bank. Available at: https://projects.worldbank​
.org/en/projects-operations/project-detail/P105680
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P A RT 3

The Way Forward

C HAPT E R 6

Water Security Trajectories

T
his chapter describes two possible water security The analysis compares the economic impacts of
trajectories between now and 2030 for Argentina, the two scenarios by their contribution to GDP and
following two different strategies for sectoral economic growth (table 6.1). It also calculates the cost-
policies and investments. The scenarios can be benefit ratio of the interventions and other social and
considered theoretical extremes for possibly framing geographical impacts, based on the analytical work in
a realistic strategy. The first shows a trending scenario chapter 2. The analysis of both scenarios incorporates
or business as usual, making no major changes to climate change as an indisputable reality affecting
the status quo, perpetuating existing challenges, Argentina’s current and future water security under any
and missing opportunities identified in the previous route taken.
chapters. Under this scenario, the current water
This study estimated future water demands under
insecurity gap would persist or increase by 2030 due
both scenarios, updating the water balances by macro
to growing demands and increasing climate change
basin shown in chapter 3, and found that differences
pressures. The second scenario pursues a proactive
between both future scenarios are, in general, not
strategy that addresses the water security challenges
significant. Just in the case of some basins larger
identified in this study and uses opportunities for
increases are noted due to the expansion in irrigation.
growth the water sector offers, always seeking
In the case of the Paraná basin, where supply is
to achieve SDG 6 by 2030.1 Fully implementing
abundant, important increases in demand are due to
the proactive trajectory requires both structural
the proposed complementary irrigation projects. In the
(or infrastructural) measures and nonstructural ones
case of Limay-Neuquen-Negro, or Patagonian Rivers,
mainly related to the governance of the sector.
increases in demand are due to new irrigated areas
To compare the trajectories, this chapter considers the to be considered (outside the scope of the “active
costs and benefits of the necessary infrastructure. But scenario” in this assessment). In such cases, the
this infrastructure could not be implemented without proposed interventions for newly irrigated areas were
the nonstructural measures explained in detail in analyzed by the FAO and PROSAP (2015) study case
chapter 7, which this study considers essential and by case, factoring in climate change with their viability
high priority. linked to water available in existing local reservoirs.
 120 ARGENTINA: VALUING WATER

Table 6.1 Scenarios for Two Water Security Strategies to 2030

Business as usual Active

• Drinking water and sanitation service coverage increases • Water and sewerage services reaches 100 ­percent coverage
at the current pace. SDG targets 6.1 and 6.2 is not across the country, with subsequent elimination of cuts in
reached by 2030; impact of water service cuts to the providing commercial/industrial water service
industrial sector continues • Construction of drainage and storage infrastructure and
• No major interventions in irrigation hydrometeorological systems reduce flood damage to
• No major investments in infrastructure to mitigate urban residential assets
floods • Upgrading and expansion of irrigation infrastructure
• No increase in wastewater treatment coverage, while substantially reduce climate shock harm to agricultural
the impacts of poor surface water quality persist productiona
• No investments in hydroelectricity, multipurpose dams, • Expanded wastewater treatment infrastructure improves water
or river navigation quality in the main surface waterways (especially on the La
Plata banks)
• Hydroelectricity investment covers increased demand
• Dredging for deeper draft vessels improves the Hidrovía
(Paraguay–Paraná–la Plata river waterway)
Source: Authors.
Note: SDG = Sustainable Development Goal.
a. Includes investments in increased efficiency or complementary irrigation in rainfed agriculture, but not new areas of irrigated agriculture.

Yet, this study recommends conducting detailed institutional policies and regulatory reforms should be
hydrological and environmental assessment at the implemented.
project level to ensure full viability without harming
In the business as usual scenario, GDP increases
other uses. Last, increases in water demand in the
0.5 ­percent a year to 2030, while in the active
Buenos Aires and La Plata basin are mainly due to
scenario, reaching 100 ­percent coverage by 2030,
higher domestic demand in Buenos Aires metropolitan
GDP increases 1.21 percent.5 So, accelerating reforms
area. Yet, AySA’s water intakes are located in the
and investments to expand coverage would boost
La Plata river, so its water comes from the Paraná–
GDP 0.71 percentage point by 2030. This translates
Paraguay–Uruguay system,2 which shows significant
into annual per capita gains of US$168.70 for water
water surplus. Appendix A includes the detailed
and US$781.30 for sewerage, net of the investment
demand analysis for both future scenarios.
and incremental operating costs of extending
coverage.
Analysis of the Business as The active scenario investments expanding water
Usual and Active Scenarios service and improving its quality to reach universal
coverage by 2030 would also improve water continuity
Water and Sanitation Services
and quality for the industrial sector, which is mostly
The trending or business as usual scenario assumes connected to urban networks. This would generate
that investments to increase water supply and gains estimated at 0.16 ­percent of GDP.6 The cost-
sanitation coverage continue at their current pace, benefit ratio of these investments for the urban
and, as of 2021, will increase at the same rate as population is 2.18 for piped water and 1.44 for sewers
past trends indicate. In the proactive scenario, annual with treatment.7
investment rises to US$3.4 billion in 2021 and then
The comparative analysis of the scenarios for 2030
grows at the same rate as the population (table 6.2;
regarding water supply and sanitation services does
see appendix B, chapter 11, for more detail).3 This
not take into account climate change because most
scenario aims at 100 ­percent urban coverage in water
of the population lives in areas with an abundance of
and sewerage by 2030.4 In contrast, the business as
resources (La Plata Basin). And in other places, human
usual scenario achieves only 88 ­percent coverage in
consumption is always a priority and unlikely to be
water and 75 ­percent in sewerage.
affected by scarcity (except for potential extreme
The required investment would be lower if the drought situations discussed in chapter 5). In any
operation of the service were more efficient (see case, water supply and sanitation interventions in
­figure 5.13 in chapter 5) and the management of less favored regions have high distributional impacts
investments better. To accomplish that, a series of (see chapter 2 and appendix B).
 121

Table 6.2 Investment for Universal Water Supply and Sanitation Coverage, Active Scenario

People added between Investment per capita Total investment

2018 and 2030 (US$) (US$ millions)
Water supply 10,958,269 1,000 10,958
Sewerage and treatment 22,704,685 1,300 29,516
Total investment 40,474
Annual investment by 2030a 3,373
Source: Author estimates. See appendix B, section 11 for details.
a. Assumes lower values for 2018 and 2019.

The net benefit of water and sewer services, for the Irrigation
20 ­percent of the people with the lowest income, is
equivalent to 3.7 and 9 times their monthly income Interventions in complementary irrigation could
respectively. For the highest income quintile, these mitigate the increasingly frequent water deficits due
benefits can be negative. This conclusion is reasonable; to climate change. The damage of frequent dry shocks
it is difficult for a high-income person to choose to live (see chapter 2) accounts for an average 7.7 ­percent
in an area without services, unless that person has of annual agricultural production, or 0.61 ­percent of
access to alternatives that provide similar satisfaction. GDP. Unless mitigated, damage can be expected to
The estimate assumes that people with lower incomes increase under the climate change scenario analyzed.
live in dwellings with more occupants,8 thus per Agricultural production would fall 10.7 ­percent on
capita connection costs are lower for these sectors.9 average, a 0.9 ­percent drop in GDP, from production
(­figure 6.1). under optimal water conditions.
The active scenario, which invests in complementary
irrigation for rainfed agriculture as described
in chapter 4, is projected to improve yields.
Figure 6.1 Net Benefits of Water and Sewerage Complementary irrigation offers two advantages
Services, Expressed in Months of per Capita for cereals and oilseeds: first, the yield (income per
Income According to Quintiles hectare) goes up, and second, crops are more resilient
to drought. The complementary irrigation investments
9 would apply to 4.73 million hectares for an estimated
investment of about US$16.5 billion. Yields would
Net profit in months of income

7 increase by 2,500–3,000 kilograms per hectare in the

case of soybeans, as observed in an experimental
study in Ceres, Santa Fe (­figure 6.2). Since the yield
5 of rainfed soybeans is around 2,500–3,000 kilograms
per hectare,11 complementary irrigation would double
3 soybean yields.
The average soybean price in 2017/18 was US$300 a
1 metric ton, so an additional yield of 3,000 kilograms
per hectare would translate to US$900 per hectare.
For the total 4.73 million hectares, that would add
–1
1 2 3 4 5 US$4.3 billion.
Poor Nonpoor Therefore, these interventions would compensate
Income quintile
for the effects of climate change to 2030.
The natural variability of productivity means some
Source: Original elaboration based on the profit calculation model uncertainty (shock −1.8 ­percent of production, and
(appendix B—Sections 1 and 2) and investment costs. The horizontal
−0.14 ­percent of GDP; table 6.4).
axis indicates the population quintile by level of per capita income.
For the calculation of net benefits, the investment amounts are For the 2.1 million hectares of irrigated agriculture,
estimated based on “constant per connection” (equal investment
amount per home connection, regardless of the number of
with no interventions in infrastructure until 2030,
household members).10 climate change impacts12 would create average annual
 122 ARGENTINA: VALUING WATER

Figure 6.2 Soybean Yield Increases with Complementary Irrigation

4,500
y = –0.046x2 + 25.555x + 245.7
4,000
R2 = 0.8584
3,500

Yield increase (kgha)

3,000
y = –0.0255x2 + 18.764x + –21.083
2,500
R2 = 0.8542
2,000
1,500
1,000
500
0
0 50 100 150 200 250 300 350 400 450
Irrigation (mm)

Source: FAO and PROSAP 2015.

Table 6.3 Complementary Irrigation in Rainfed Agriculture

Surface (ha) Total cost (US$ Annual expected profit

billions) (US$ billions)
Introducing complementary irrigation in rainfed crops 4,730,000 16.5 4.3
Source: FAO and PROSAP 2015.

Table 6.4 Effect of the Active Scenario on Rainfed Agricultural Production

Impact on rainfed agricultural No intervention With complementary irrigation

production (percent of GDP)
Current −7.7 ­percent (−0.61 percent)
In 2030 −10.7 ­percent (−0.86 percent) −1.8 ­percent (−0.14 percent)
Note: GDP = gross domestic product.
Source: Own assessment based on FAO and PROSAP 2015.

losses of US$837 million, equivalent to a 15 ­percent kilometers of water and expanding irrigated areas
decline in production and 0.16 ­percent decline in GDP. by about 560,000 hectares at a cost of US$8.1
billion. Given current yields, a production increase
An active scenario includes two possible interventions
equivalent to US$2.16 billion a year could be
(table 6.5; see chapter 4):
expected.
(i) Increasing irrigation efficiency. The most modest
Fully implementing these two options would
objective is to maintain the current irrigated surface
add about US$2.2 billion a year in gains, due to
area, increasing the efficiency of current systems
increased production, to the US$5 billion currently
from 34 ­percent to 41 ­percent to counterbalance
produced by existing irrigated agriculture. At
the described losses without additional water
present, irrigation accounts for 13 ­percent of
withdrawals. These improvements would require
Argentina’s agricultural income. Completing these
investing US$2 billion to avoid the annual estimated
projects would raise that percentage to about 19
loss of $US837 million.
percent. And it would substantially increase the
(ii) Further increasing the efficiency of existing agriculture sector’s resilience. These proposals
irrigation and using surpluses to expand the contribute to improving performance on SDG
agricultural irrigation frontier without needing indicator 6.4.1 (efficient use of resources) by moving
to extract more water. The interventions would from 34 ­percent water management efficiency to
reach 58 ­percent efficiency, saving up to 11 cubic 58 ­percent on irrigated land, while doubling—or
 123

Table 6.5 Costs and Benefits of Investments in Irrigated Agriculture13

Area (thousands Cost (US$ Expected annual gains

of hectares) billions) (US$ billions)
Increase efficiency to 34 percent 2,100 2.00 0.84
Increase efficiency to 58 ­percent and expand border area 560 8.10 2.16
Source: FAO and PROSAP 2015.
Note: Gains assume that the market absorbs the increase in supply at current production prices.

Table 6.6 Impacts of Interventions on the Irrigated Agricultural Sector

Changes in agricultural output (and % of annual GDP), derived from the different scenarios
Business as usual scenario
No interventions to 2030 −15.0% (−0.16%)
Active scenario
(1) Increase efficiency (to absorb impacts of climate change) 0% (0.0)
(2) Increase efficiency and expand irrigated area 38% (0.42)
Note: GDP = gross domestic product.

more than doubling—rainfed agricultural production Although no clear trends in increasing frequency
in areas under complementary irrigation, which and intensity of floods have yet appeared beyond
would mean a better use of resources (table 6.6). the natural variability due to the El Niño Southern
It is important that these interventions are jointly Oscillation, such increases may take place in the
considered with the improvements in water medium to long term, increasing damage and the costs
resources management and governance mentioned of mitigation. Increased exposure and vulnerability
in chapter 7. often explain such damage (see chapter 5). These
indications call for measures to increase resilience in
Except by needing increased labor for increased the face of extreme events.
agricultural production (and even more in irrigated
agriculture, which is more labor-intensive than For the business as usual scenario, the same flood
rainfed agriculture), the proposals in this study do not impact as at present, of 0.19 ­percent of GDP, appears.
change the distribution of benefits among population Higher costs might be expected if no major investments
sectors much. Yet, irrigation projects, as investments or vulnerability reduction measures are taken by 2030.
improving productivity and competitiveness, affect the For the proactive scenario, the impact would fall to
geographical distribution of welfare since they may 0.12 ­percent of GDP, given the cost-benefit ratios
improve microregions starting with low economic described above. Impacts can be further reduced
activity by increasing population, accessibility, and through nonstructural measures to reduce exposure
basic infrastructure and therefore redressing territorial and vulnerability (such as enforcing regulations and
inequalities. implementing early warning systems; see chapter 7).

Even though in absolute terms, the poor may suffer

Urban Floods less asset losses than the rich, they experience
greater losses of well-being (see chapter 2). So, flood
The investments to mitigate flood impact and secure the mitigation infrastructure has clear distributional impacts
associated gains are difficult to assess. Calculating both socially and geographically.15 Actions can be
the cost-benefit ratio depends on the population, its structural or nonstructural, and nature-based solutions
vulnerability, the recurrence periods to be covered, and can be considered among the former.
other considerations. This study estimates a ratio of at
least 1.4 for Argentina,14 meaning that investments in It is important to advance the use of early warning
urban storm drain infrastructure to counter the effects systems as prevention and protection tools. Hydromet
of urban floods with a 10-year recurrence period, infrastructure and early warning systems have a low
estimated at about US$2.8 billion, would have aggregate cost (estimated at US700 million in this study) relative
gains of US$396 million a year. to their large benefits (Hallegate et al. 2012).
 124 ARGENTINA: VALUING WATER

Improving Surface Water Quality water supply, industry, irrigation, and recreation, could
have decisive benefits.
SDG target 6.3 proposes: “By 2030, improve water
quality by reducing pollution, eliminating dumping The national energy strategy intends to implement
and minimizing release of hazardous chemicals an additional 3 gigawatts by 2030 (MINEM 2017).
and materials, halving the proportion of untreated That would modify today’s 26 ­percent (2016) share
wastewater and substantially increasing recycling of hydro-generated electricity to 24 or 29 percent,
and safe reuse globally.” It identifies two indicators to depending on which scenario is being evaluated.
monitor this target: The investment required for the increase, at a cost of
US$2,500 per kilowatt, would be US$7.5 billion. The
• Indicator 6.3.1: Proportion of water safely treated
corresponding gain in GDP would be 0.05 ­percent
• Indicator 6.3.2: Proportion of bodies of water with a year.16
good ambient water quality
For surface water, the study compares water security The Hidrovía: The Paraguay–
trajectories using the construction of wastewater Paraná–la Plata Waterway
treatment plants to determine whether the quality
Deepening the waterway’s Timbues–ocean segment
of surface water bodies would improve. Under the
from 34 feet to 38 feet under the active scenario
business as usual scenario, that impact would be
would create gains of US$75.5 million a year due to
unchanged (see chapter 2). Under the proactive
lower freight costs for agricultural exports, totaling
scenario, investing US$5.18 billion in wastewater
US$900 million by 2030.17
treatment for users currently connected to sewers but
without treatment would eliminate some costs of poor This estimate by the Rosario Stock Exchange does not
water quality (see chapter 2), for an estimated annual include gains from shorter travel time, though the
gain of 0.1 ­percent of GDP. Other gains, unquantified national government estimates that the extra depth
here, would come in ecosystem service quality, will reduce hours of delay by 35 ­percent by 2030. The
lowered costs to purify water intakes, and improved government also estimates a 5 ­percent reduction in the
commercial and recreational fishing. number of trips due to improved storage capacity.18
The 60 ­percent of people with the least income According to the Ministry of Transport, if improvements
benefit most from improved surface water quality are not carried out in the Punta Indio–Codillo segment
due to reduced costs to travel to more distant coastal (La Plata River), its current 69 ­percent congestion
recreational areas. This shows wastewater treatment would reach 96 ­percent by 2030.19 Lower congestion
plants bringing significant distributional impacts. and greater use of vessel capacity would improve the
factors that determine freight costs (table 6.7).
Hydroelectricity
The business as usual scenario assumes no investments Aggregate Impact
in hydroelectric dams in the near future. By 2030, With these new data, the aggregate impact of
climate change will decrease water availability in all proactive scenario factors by 2030 is 2.7 ­percent
water macrobasins, probably implying less water being of annual GDP above that of the business as usual
turbinated, but the economic impact is less clear (see scenario.20 These estimates reveal potential gross
chapter 4). returns of about US$15 billion per year to infrastructure
In the active scenario, assessing investments in large to eliminate water security deficits in Argentina
storage capacity for hydropower generation by 2030 (table 6.8). The sole effect of climate change up to
is difficult. The expected decrease in available water 2030 in the business as usual scenario (with and
interferes with planning and designing for a target without climate change) would be 0.5 percentage
electricity output production. And the large investment point of GDP.
needed in difficult economic circumstances such as
today’s, amid competing sources of energy generation Prioritizing Infrastructure Investments
and their associated environmental impacts, makes it under the Active Scenario
difficult to say that increasing hydropower generation
To prioritize infrastructure investments, this study
capacity is the clear choice.
maps net contribution to economic growth, in
But hydrological analysis indicates a need to increase terms of economic returns for a fixed capital
capacity to regulate water in high-stress areas. So, a investment (table 6.9). It is also useful to compare
multipurpose reservoir that also serves other uses in the different distributional impacts for each type
addition to hydroelectric generation, such as domestic of investment. In addition to these long-term
 125

impacts, it is useful to consider short-term effects The expansion of water supply and sanitation services
of different types of investments—the effects while and urban drainage in areas without coverage are the
construction is under way. These can be also drivers types of investment with the highest combination
for prioritization, particularly in times of economic of positive short- and long-term impacts, as is the
recession and fiscal constraint. The short-term factors expansion of irrigation. The expansion of water supply
are labor, dependence on local goods versus imported and sanitation also addresses the most basic and
ones, and dependence on public funding. The effects urgent needs of the most vulnerable, a task even
on employment and on the needs for foreign currency more necessary in the days of COVID–19 and that
are evaluated under a public investment economic must be accompanied by hygiene and hand-washing
model, based on cost structures by works typology awareness campaigns. In turn, these infrastructure
(Crovetto, Hang, and Bernardo 2016), while the projects contribute to generate employment, as they
capacity to self-finance is evaluated by reviewing a are labor-intensive. In general, such investments
series of projects. rely substantially on public financing, at least while
cost-recovery rates through tariffs in the sector are
Under fiscal constraints, the requirement for
low. Irrigation projects have high net economic
investment subsidies can be a major constraint. In
returns, generate employment, and if circumstances
this chapter and the preceding ones, this aspect has
allow, could be co-financed with the private sector.
been commented on from different angles, in order
The following are specific recommendations by type of
to establish the requirements of public funds for each
infrastructure.
type of investment. The possibility of recovering
these funds through fees or other charges has Among the short-term variables, large storage
been evaluated as well as whether there is private infrastructure is the most labor-intensive and,
financing available considering the medium-term along with interventions in water and sanitation,
precedents. least dependent on imported goods. Upgrading

Table 6.7 Projected Impact of Improving the Hidrovía

2017 2030 2030

Base without improvement with improvement
Tons transported (millions) 124 170 170
Number of vessel trips (thousands) 10.4 14.2 13.4 — ↓ 5%
Tons/hours per trip 464 468 498 — ↑ 7%
Hours of delay (thousands) 41 58 37 — ↓ 35%
Toll (US$/ton) 1.88 1.89 1.78 — ↓ 5%
Source: Ministry of Transport. The ministry notes that this scenario does not necessarily define the option chosen for the next bid.

Table 6.8 Sectoral Impacts on Annual GDP by 2030 of the Business as Usual and Proactive Scenarios

Sector Business as usual Proactive, with intervention

Water supply and sewerage services +0.5 percent +1.21 percent
Agriculture, rainfed −0.86 percent −0.14 percent
Agriculture, irrigated −0.16 percent +0.42 percent
Businesses—supply outages −0.16 percent 0.0 percent
Quality of surface bodies of water—impact on surrounding −0.09 percent +0.0 percent
areas and on the population (recreation)
Urban floods −0.19 percent −0.12 percent
Hydropower/multipurpose dams 0.0 percent 0.05 percent
Waterway deepening 0.0 ­percent Low significance
Source: Author analysis (it is a summary table from all the others above).
 126 ARGENTINA: VALUING WATER

Table 6.9 Long- and Short-Term Socioeconomic and Fiscal Impacts of Water Infrastructure

Long-term impact Short-term impact

(during infrastructure’s lifespan) (during construction)
Net Distributional impact Local More Capacity
contribution Social Geographic employment dependency to self-
to economic (benefit (reduce on local finance
growtha the poor territorial goods (less
(percent) the most) asymmetries) demand
for foreign
currency)
Complementary irrigation to 0.44
rainfed agriculture
Efficiency improvements in 0.57
irrigated agriculture
Expansion of water supply and 0.30
sanitation to new areas
Improvement of surface 0.18
water quality through new
wastewater treatment plants in
areas with network in place
Rehabilitation of water supply 0.12
and sanitation networks to
improve service quality
Hydropower 0.07b
Deepening the Hidrovía 0.67
Urban flood mitigation 0.27
Hydrometeorological 0.77
infrastructure
Source: World Bank team. Based on economic analysis included in appendix B.
Note: Dark color shows larger effect than light colors. Blank means no significant effect. The table is conceived as a prioritization tool that
summarizes the analysis explained in the text. It compares the long-term and short-term variables to help select investments, depending on
which criteria decision makers want to emphasize.
a. Economic returns for a fixed capital investment of US$10 billion.
b. Not including additional benefits of multipurpose dams.

the Hidrovía, which has a high net return, has little Notes
dependency on public financing since it would be
executed through a concession contract. Irrigation 1. This study’s evaluations were made before the start of
the COVID-19 pandemic. The pandemic’s duration and
projects, given the existence of adequate feasibility
depth are not yet known as the study is being completed.
studies, are also strong candidates for private sector Its social and economic consequences could modify,
financing. though not substantially, the estimated results for the
Hydrometeorological infrastructure shows the highest sectors and scenarios considered here. Major impacts
on global economic growth are expected in the short
cost-benefit ratio (Hallegatte et al. 2012). If it is
and medium term, along with major fiscal impacts and
located in vulnerable, densely populated areas, the possibly changes in habits, in social priorities, and so in
benefits for low-income sectors can be considerable. governments. To begin with, two needs stand out: in
Yet, though their capital and operating expenses the short and medium term, to alleviate the impact of
require public financing, they are mostly built with people’s unemployment and fallen incomes, and in the
imported goods, and their construction is not very long term, to improve and strengthen health care and
labor-intensive. associated infrastructure. Most of the sectors analyzed
 127

Figure 6.3 Comparison of Water Security Scenarios in Terms of Investments and Impacts on GDP

7.5 multipurpose storage

40.5 extension WSS

Invesments in Water Security

13 Renovation WSS
5.2 WWTPs for existing WSS
2.8 urban flood mitigation
US$ 96.9 billion
0.7 hydromet and EWS
Active scenario
16.5 complementary irrigation
+2.7% higher
10.1 Efficiency in irrigated Agr
anual GDP 0.4 Navigation

20.2 WSS
*slope: population growth (1.06% annual) US$ 36.6 billion 16.4 WRM infrastructure*
Business as (storage, flood mitigation,
US$ 2.7 billion/year usual scenario hydromet...)

2021 2030
Time

Note: Investments are in billions. Investments under the business as usual scenario are derived from the analysis included in chapter 4 (current
investments in WSS and WRM infrastructure) projected through 2030 with an annual vegetative growth rate. GDP = gross domestic product;
WSS = water supply and sanitation; EWS = early warning systems; WRM = water resources management; WWTPs = wastewater treatment plants.
* No investments considered in irrigation.

here are closely related to these needs. The study’s contamination; while basic sanitation considers the use
projections of impact will help governments choose of improved facilities that are not shared with other
actions. The new demands posed by COVID-19 make households. Sanitation solutions for the rural population
them even more relevant. After a sharp drop in GDP and are probably more economical than those for the urban
employment, and an increase in the percentage of the population. And not all the urban population requires
population living in poverty or indigence, the Argentine sewerage (based on the the cost-benefit ratio per social
government has renegotiated debt with private creditors, sector)—the solutions already available to some are more
facing a less compromised future fiscal situation, better efficient than sewers, and the investments planned for
macroeconomic conditions, and possibly access to sewers in these sectors are probably greater than those
alternative financing sources, presenting more favorable required in rural sectors without improved service.
conditions for increased investment in infrastructure,
5. The equivalent impact on GDP of investing in reaching
which in turn has a strong impact on occupancy levels.
universal coverage by 2030 was calculated using the
2. Note that the supply considered there represents only partial equilibrium model described in chapter 2.
surface runoff, not groundwater and snowmelt sources,
6. And efficiency improvements in providing services could
which are being tapped in basins where demand exceeds
free resources to be used for better maintenance and
supply.
renewal of assets.
3. During 2018–20, the investment rate was considered the
same as in the business as usual scenario (US$1.5 billion 7. These estimates can be considered conservative ratios
per year). of 2.5 for access to improved drinking water sources and
8.2 for access to improved sanitation (Hutton 2012). The
4. The analysis treated the costs and gains of reaching estimated benefits by income quintile increase more, the
100 ­percent coverage of just the urban population as lower the income of the population, if investments are
achieving the SDGs. According to World Bank estimates, constant per capita. The benefits in favor of lower-income
in 2018 the rural population was 8.3 ­percent of the total. sectors are even higher if investments are constant per
According to the Joint Monitoring Programme, in 2015 household.
that population had 100 ­percent coverage by improved
water accessible in their home and 94 ­percent coverage 8. Among households in the lowest income quintile, 4.94
by basic sanitation. The Joint Monitoring Programme people live in households with water services, and 4.73
considers improved water to be drinking water from live in those with sewage services; for households in the
an improved water source within the facility, available highest income quintile, these numbers are 2.29 and 2.21
when needed, and free from priority fecal and chemical respectively. Source: National Institute of Statistics and
Census.
 128 ARGENTINA: VALUING WATER

9. An investment cost of US$3,523 for water and US$4,543 18. Although not specified in the studies, the methodology
for sewers is considered, a value obtained by multiplying estimated that these gains are net of the costs of the
the number of inhabitants per dwelling without water or improvement of the navigable waterway to the extent
sewers by the per capita investment. that, at present, they are recovered through the fee
charged for use of the Hidrovía, which is part of the
10. See Busolini 2012; Garzonio 2010; Hutton and freight costs.
Varughese 2016; Nuñez and Martínez 2015; Soulier
Faure et al. 2013. The analysis is made from data 19. Hidrovía Federal 2021, Argentine meeting of river
obtained from 14 investment water and sanitation transport—September 2019. Ministry of Transport.
project documents from DNAPyS, CAF, World Bank, and 20. Using the GTAP BIO-W general equilibrium model for this
DINAPREM. estimate.
11. According to data from La Bolsa de Cereales. Available at:
https://www.bolsadecereales.com/ (consulted in March
2021). References
12. RCP 4.5 in 2099 is used for this case. Busolini, M. 2012. Cobertura de los servicios de agua
13. This analysis does not consider the expansion of irrigated y saneamiento a nivel nacional: estimación de
infrastructure considered by PROSAP, mentioned in las inversiones necesarias para su expansión.
chapter 4, as part of essential interventions to close the Buenos Aires: Cámara Argentina de la
water security gaps. This expansion of 915,000 hectares Construcción (CAC), Fondo para el Desarrollo de
and an investment of US$7.39 billion was considered la Construcción.
for areas where water extraction is environmentally
viable and considering climate change projections. These Crovetto, Norberto, Guillermo Hang, and Martino
interventions potentially offer gains worth US$2.43 Bernardo. 2016. La Inversión Pública en
billion a year, assuming markets absorb the supply at the la Argentina: Dinámica, composición y
current rate. This would imply an increase of 43 ­percent efectos sobre la estructura productiva.
of agricultural production with an impact over GDP of https://www.academia.edu/30289576​
0.47 percent. However, according to the water modeling
/La​_Inversi%C3%B3n_P%C3%BAblica_en_la​
conducted, some areas that currently face limits to
water extraction could no longer be productive. In the _Argentina_Din%C3%A.
updated FAO and PROSAP study, the proposed irrigation FAO (Food and Agriculture Organization) and PROSAP.
expansion areas depend on guaranteed water in basins
2015. Estudio del potencial de ampliacion del
with a surplus. The proposed interventions would, on a
case-by-case basis, need to be backed up with technical riego en Argentina. Buenos Aires: FAO.
information on environmental flows and interactions Garzonio, O. 2010. Cobertura de los servicios de agua
with other uses in the basin. This information has to
y saneamiento a nivel nacional: estimación de
be prepared in the context of a solid river basin plan
elaborated in the framework of the corresponding river las inversiones necesarias para su expansión.
basin association, with the participation of all relevant Buenos Aires: Cámara Argentina de la
stakeholders in the basin. Construcción (CAC).
14. This value corresponds to valuations derived from the Hallegatte, S., A. Vogt-Schilb, M. Bangalore, and
Unbreakable model for estimates of gains from mitigating J. Rozenberg. 2012. Unbreakable: Building the
damages in urban flood events with 10-year return Resilience of the Poor in the Face of Natural
periods or less, and estimation of costs derived from Disasters. Climate Change and Development
data of the provinces of Santa Fe and Buenos Aires. The
Series. Washington, DC: World Bank.
­figure also coincides with cost-benefit ratios derived from
World Bank–funded projects in Argentina. Hutton, G. 2012. Global Costs and Benefits of
15. Results from the Unbreakable model are used to quantify Drinking-Water Supply and Sanitation
economic impacts under both scenarios. Interventions to Reach the MDG Target and
Universal Coverage. Geneva: World Health
16. For this calculation, it is estimated that hydroelectric
generation contributes an estimated 0.19 ­percent
Organization.
of Argentina’s GDP. Three gigawatts of installed Hutton, G., and M. Varughese. 2016. The Costs of
power represent a 27 ­percent increase over current
Meeting the 2030 Sustainable Development
availability.
Goal Targets on Drinking Water, Sanitation, and
17. Rosario Stock Exchange, Weekly Report, Edition 1765, Hygiene. Washington, DC: World Bank, Water and
2016. Available at: www.bcr.com.ar/es/mercados​ Sanitation Program.
/investigacion-y-desarrollo/informativo-semanal​
/noticias-informativo-semanal/son (consulted in MINEM (Ministerio de Energía y Minería). 2017.
March 2021). Escenarios Energéticos 2030. Dirección Nacional
 129

de Escenarios y Evaluación de Proyectos. http:// Cámara Argentina de la Construcción, Área de

www.energia.gob.ar/contenidos/archivos​ Pensamiento Estratégico.
/Reorganizacion/planeamiento/escenarios​
Soulier Faure, M., J. Ducci, M. Altamira, and A. Perroni.
/as15160516401.pdf.
2013. Agua Potable, Saneamiento y los Objetivos
Nuñez, J., and D. Martínez. 2015. Cobertura de los de Desarrollo del Milenio en América Latina
Servicios de Agua y Saneamiento a Nivel y el Caribe. Sector de Infraestructura y Medio
Nacional. Estimación de las Inversiones Ambiente. Washington DC: Banco Interamericano
necesarias para su expansión. Buenos Aires: de Desarrollo (BID).
C HAPT E R 7

Recommendations

T
his chapter’s recommendations aim at closing the outcomes. Recommendations link the infrastructure
water security gap and seizing opportunities to identified and assessed in the previous chapter, to
enhance sustainable development in Argentina in close the main water security gaps, with the associated
the context of the 2030 SDG agenda. They prioritize governance reforms derived from the diagnostic
efforts in a challenging macroeconomic environment conducted in chapters 4 and 5 that are necessary for
threatened by climate change, and identify the specific investments to be efficient and sustainable.
infrastructure investments with maximum social and Reforms in many occasions need to be implemented in
economic net returns, considering associated key advance.
factors mentioned in chapter 6 such as costs, benefits,
Figure 7.1 summarizes the recommendations of both
or financing sources.
governance and associated infrastructure measures
The COVID–19 crisis evidenced the need to guarantee in the short and medium-term. Figure 7.2 shows the
the supply of sufficient water for human, agricultural, complexity, priority, impact, and range of intervention
and industrial use. Adding the threat of climate of the proposed infrastructure.
change, countries have to both plan and design new
infrastructure and rehabilitate and protect existing Water Governance: The
infrastructure. To do so, they will require a robust
institutional framework that guarantees the system’s
Enabling Environment
sustainability and strengthens its resilience to future Improvements in the water governance system in
shocks. Strengthening institutional and regulatory Argentina are an essential condition for building the
frameworks and policy instruments are essential to enabling environment to achieve SDG 6. Therefore,
achieve this. the recommendations proposed in this section are
considered central parts of a strategy to strengthen
Consequently, the main recommendations focus
water security and thus increase resilience to climate
on increasing efficiency in spending the resources
change.
allocated to the water sector. Efficiency measures,
with strong political leadership, establish an enabling The following 11 governance recommendations aim
environment of policy, regulations, and institutions to solidify the enabling environment, addressing
to improve the sector’s performance and maximize key inefficiencies, maximize the use of savings, and
its positive economic, social, and environmental reduce investment and operation costs that could be
 132 ARGENTINA: VALUING WATER

Figure 7.1 Recommendations and Associated Infrastructure Measures

What does it take to How to achieve Water Security in Argentina?
boost water security
in Argentina? GOVERNANCE INFRASTRUCTURE

Strengthen the national and provincial regulatory frameworks for water

01 resources management as the legal foundation for increasing resilience to
climate change in an efficient manner.

Reduce the institutional fragmentation of the water sector, promoting

02 horizontal and vertical coordination, and implement a sector-wide
Institutional Strengthening Plan. Increase storage
A infrastructure (hydropower
Strengthen water and multipurpose)
resources Consolidate and reinforce the role of river basin organizations, especially at
management and 03 transboundary and inter-jurisdictional levels, to improve overall efficiency in
improve water water resources management.
quality

Deepen hydrological knowledge and increase available information of water Efficiency investments
04 B
related issues, including areas such as water quality and water demand. in irrigated agriculture

Establish a dam safety regulatory framework and strengthen the Dam Safety Complementary irrigation
05 C
Regulatory Agency. for rainfed crops

Promote adequate land use management as a cost-effective measure to

Reduce 06 reduce flood-risk in rural areas, and explore innovative financing mechanisms Green and grey flood
D
water related risks for drainage works. mitigation infrastructure

Urban planning process must integrage in a rational manner hydrological risk Hydrometeorological
07
zoning and the expansion of water and sanitation services. E infrastructure and
early warning systems

A new water supply and sanitation regulatory framework is necessary to set Investments in extending
08 up the basis for expanding access to inclusive, efficient and sustainable water supply and
F
water and sanitation services. sanitation services

Update the National Water Supply and Sanitation Plan to set realistic,
09 Investments in wastewater
achievable milestones toward SDG 6.1, 6.2 and 6.3. G
treatment plants
Increase inclusive
and sustainable Rehabilitation of water
Implement key policy reforms aiming at increased efficiency in the
access to water 10 supply and sanitation
provision of water supply and sanitation services. H
services networks

Improve the enabling environment to facilitate investments in

11
irrigation.
I Deepening waterway

Source: Authors.
 133

Figure 7.2 Water Investments

A Increase multipurpose storage/reservoirs/dams
B Efficiency improvements in irrigated agriculture
C Complementary irrigation for rainfed crops
D Green and grey flood mitigation infrastructure
E Hydrometeorological infrastructure and early warning systems
F Investments in extending water supply and sanitation services
G Investments in wastewater treatement plants
More urgent

F H Rehabilitation of water supply and sanitation networks

E I Deepening waterway

B D Water resources Water risk Water

A
management management services
C G
Less urgent

H
I

Less complex More complex

Source: Authors.
Note: The span of the shadow for each measure relates to the variety of geographical priorities related to it. The bubble size shows the net
contribution to economic growth of the water infrastructure interventions (table 6.9, chapter 6). Each type of investment should be linked to
corresponding governance recommendations outlined in figure 7.1.

used in expanding infrastructure and improving its throughout the national territory, which each province
sustainability. Although recommendations are classified can then adjust, adapt, and develop more specifically
in three relevant areas—water resource management, according to the reality of each jurisdiction. The new
water supply services, and water risk mitigation—many regulatory framework should also set forth a range
of them cut across issues, as figure 7.1 shows. of limits, indexes, or reference values for compliance
with discharge and water quality regulations. In this
Water Resources Management regard, the inclusion of guidelines is suggested for
water quality international standards, adapted to the
1. S trengthen the national and provincial national and provincial context, which will then be
regulatory frameworks for water resources subject to regulation and control at the provincial
management as the legal foundation for level.1 An alternative would be a thorough revision
increasing resilience to climate change in an and purification of law 25.688, eliminating the
efficient manner. controversial aspects mentioned in chapter 4, and
Complexity: Priority: Medium-High deepening the environmental aspects protected by
High (Debate process should start now. Final the Constitution.
adoption in medium term.)
A complementary approach in the long term would
A step forward from the Guiding Principles of be to establish nationwide regulation, with active
Water Policy agreed in 2003, and considering the and strong provincial participation and agreement,
objections formulated to law 25.688, would be to aimed at setting best practices for adequate water
establish a mandatory legal framework of minimum management, which provinces can adhere to. The
contents and regulations at a national level on the regulation should, at the same time, also establish
environmental management of water, ensuring the commitments, but also the rights and benefits,
full participation of all provinces. The effort to in terms of federal funding, for instance, of the
establish a legal framework for environmental water subscribing provinces. These principles must be clear,
management should now be relaunched, ensuring particularly regarding the participation of provinces
full participation from all provinces. The minimum in programs financed at the national level. This
contents of the law should be based on standards, regulation should lay the foundations for efficient
criteria, methodologies, protocols, and best practices water management, including: (1) the identification
on the management of water resources, shared of management entities, with their functions and
procedures; (2) the elaboration, implementation,
 134 ARGENTINA: VALUING WATER

monitoring, and evaluation of basins’ integrated for provincial representation. This institution should
master plans; (3) the implementation of practices have a clear role in the elaboration of the proposed
and performance indicators associated with water legal frameworks. And it should be recognized in
management in the basin; (4) the assessment of frameworks as an entity to guide the elaboration
interventions, identified in the integrated master of basin plans and the economic, environmental,
plans, with economic, social, and environmental and social evaluation of programs and projects for
criteria; (5); the use of objective and equitable comprehensive water management, to help evaluate
procedures for the allocation of national funds; and the master plans’ implementation and to monitor
(6) the application of accountability protocols, to the efficiency of public spending. To this end, the
improve the efficiency of public spending, among COHIFE Foundational Charter should be fully applied,
others. as stated in Article 3, items G, H and I:
In parallel, improvements are required in existing Art. 3—Item G. “promote an equitable distribution of
provincial regulations to strengthen water resource federal funds, based on agreed criteria”; Item H. “To
management strategies and systems’ resilience to advocate before the Authorities ... the generation
extreme events. These improvements should aim to and implementation of a Permanent Federal Water
reinforce the prioritization of water uses and promote Resources Fund ...” and Item I. “Participate in uniform
informed decisions on the combined use of surface application criteria for the allocation of resources and
and underground water to avoid overexploitation and fund investments.”
preserve quality. The adjustments in the provincial
2. R
 educe the institutional fragmentation of the
regulations could focus on:
water sector, promoting horizontal and vertical
• The adjustment of usage permits to the coordination, and implement a sector-wide
characteristics of each water source, considering institutional strengthening plan.
prioritized uses, time or season of extraction,
and clear rules for water quotas during droughts, Complexity: Medium Priority: Gradual
hence promoting greater control of the resource i­mplementation
offered.
National and provincial entities should work to reduce
• In the case of interjurisdictional resources, the the existing levels of institutional fragmentation and
establishment of periodically revised agreements, the amount of overlapping responsibilities. Whether
quotas, and flow allocations. These should be it is under the umbrella of competencies of the same
agreed on by the parties in accordance with the institution (ministry level) or by streamlining functions
framework outlined in basins’ master plans and
and establishing clear coordination mechanisms among
supported by rigorous information analysis.
entities, water resource management needs to be
• Methodologies for setting up criteria for carried out organically, avoiding duplication of functions
environmental flows defined in the corresponding to maximize efficiency. This harmonization exercise
basin plans, according to each geographical and would bring together resource control functions in
ecological reality, should be agreed on, following
terms of quantity and quality, integrating all aspects of
guidance from international best practices or under
previously proposed national regulation. water resources management.

• Strengthened control mechanisms and an efficient For example, in the province of Buenos Aires,
sanction regime should be set up to prevent institutional synergies could be achieved among
water contamination. This implies strengthening the Water Authority, the Provincial Agency for
the “polluter pays” principle, establishing realistic Sustainable Development, and the Directorate for
and effective financial burdens for polluters, and Hydraulic Works under the scope of the Ministry of
allowing sufficient resources to be generated for Infrastructure and Public Services. A logical step in
the implementation of control measures. For this provinces with higher levels of fragmentation would
instrument to be an effective incentive, it could
be to consider a single water agency that has a
be combined with other incentive mechanisms,
such as payments for hydrological or mandate for bulk water resource management, and
environmental services, that encourage polluters to consider different sectors of demand as users,
to improve their environmental performance. helping to minimize conflicts among sectors and
achieve overall greater efficiencies in water use. This
The most important factor for success of a regulatory is particularly relevant in arid provinces with high
framework at the national level is to guarantee a competition for the resource among stakeholders.
participatory process—that is, to ensure contributions At the national level, such harmonization between
from the provinces and key sector stakeholders. For the SIPH and the MAyDS would be desirable.
this purpose, it is important to strengthen the role of Likewise, a review of the functions and scope of
the Federal Water Council (COHIFE) as the key body the competencies of the COHIFE and the COFEMA
 135

is recommended, along with promotion of staff of the institutions that carry out resource
communication between them.2 In this harmonization management at the provincial level. Increasing the
exercise, consolidating the role of river basin attractiveness of technical positions for younger
organizations is essential (Recommendation 3). staff should be combined with inter-generational
knowledge transfer programs to avoid losing
Overcoming the significant disparities in water-related
valuable experience gained by highly skilled
institutional capacities requires the development of
staff that are retiring. In particular, the training of
a national plan for institutional strengthening, with
technicians in hydrogeology and the inclusion of
concrete measures for different institutions at all levels.
professionals with a hydrogeological background
It should encourage the horizontal transfer of capacities
in entities with executive capacity is important to
based on the successful experiences of different
help filling this key knowledge gap.
provinces, as well as transfer of the expertise and
knowledge of specialized agencies. For this purpose, 3. Consolidate and reinforce the role of river basin
it will be necessary to allocate resources within the organizations, especially at transboundary and
framework, for instance, of the next update of the interjurisdictional levels, to improve overall
National Water Plan, and to establish formal criteria efficiency in water resources management.
and procedures for its implementation within the new Complexity: Medium Priority: High
regulatory framework proposed. The resources must be
stable to allow for medium- and long-term planning As a downstream country, Argentina must promote the
and may correspond to a percentage of the resources acceleration of the transboundary water management
earmarked for infrastructure projects. agenda. This is justified by the La Plata basin’s size,
its relevance for Argentina, as well as the speed at
In particular, the following actors should have their with which changes in water demand and supply
capacity strengthened: occur. Strong Argentinian diplomatic work and political
(i) Provincial water authorities. They should leadership are necessary to lead actions toward
improve their capacities for planning, managing strengthening the organizational framework and the
water resources, and monitoring environmental consolidation of concrete functions of the international
sustainability, both in surface water and organizations, leading to a more effective and efficient
groundwater. The improvement includes reinforcing implementation of the already existing of strategic
capacities for key technical staff in tasks such as policies and programs in the basin.
inspection and verification in the field, control of For La Plata, Bermejo, and Pilcomayo river basins, an
compliance with regulations, and application of integrated information management platform is critical.
administrative sanctions in relation to the use, This platform could benefit all member countries of
protection, and preservation of the resource the respective basins, by incorporating integrated
(ecological flow and water quality), eliminating measurement networks and management systems,
such mechanisms as positive administrative silence. as well as early warning systems, which should be
(ii) COHIFE and SIPH. These federal coordination developed jointly by the member countries. It is also
entities are key to the establishment, important to coordinate future actions with Chile
implementation, and monitoring of national concerning the water resources shared with Argentina.
policies that address the challenges of water Interjurisdictional basin organizations have great
security. Both should share executive powers potential to help improve the overall efficiency of
(as per the legal reforms discussed above), be water resource management. This can happen once
capable of developing binding agreements, and be consensus is established with the corresponding
endowed with resources to develop their activities. provincial authorities regarding which functions
(iii) Institutions and organizations that generate may be delegated to them, with planning being
knowledge and develop information. Such the prevailing one. The next step is strengthening
institutions could promote a more active role these organizations, matching their increased
in capacity building in provinces with fewer responsibilities with increase financial autonomy.
resources. Thus, the National Meteorology Service For this purpose, attaining sustainable financing
(SMN), the National Water Institute (INA), the instruments that ensure the continuity of long-term
National Institute of Agricultural Technology policies is recommended.
(INTA), the Argentine Institute of Nivology, The activities of these organizations should be
Glaciology, and Environmental Sciences (IANIGLIA), aligned with the regulatory framework, previously
research centers, and universities, among others, described at the national level. This framework
should see further enhancement in their role of should, with respect to these organizations, focus
generating knowledge and transferring it to the
 136 ARGENTINA: VALUING WATER

on matters such as: (1) the content and scope of 4. Deepen hydrological knowledge and increase
the basin’s master plans; (2) conflict resolution available information of water-related issues,
procedures; and (3) the identification of economic, including areas such as water quality and
social, and environmental prioritization principles water demand.
of the interventions proposed in the basin. Citizen Complexity: Medium Priority: High
engagement and overall active stakeholder
participation processes should have an important role Promoting data generation, mapping, modeling, and
in the consolidation of the organizations. This means forecasting of ground and surface water resources in a
strengthening infrastructure users’ associations and systematized way, both at the provincial and national
ensuring adequate representativeness of all users, levels, is a “low hanging fruit” when the costs and
among others. benefits of such activities are compared. The ongoing
initiatives to systematize data and information related
The Importance of River Basin Planning as a to the status of the resource, in quality and quantity,
Main Function of River Basin Organizations should be boosted and expanded with more modeling
tools and with the collaboration of the COHIFE.
Argentina should continue to make progress in the
preparation, implementation, and evaluation of river Efforts to achieve comprehensive, standardized,
basin plans. Territorial planning must rely strongly on and processed databases must be complemented
the basin as its management unit, considering land by a clear commitment to transparency in access to
uses and ecosystems influencing the surface and information. This commitment should be understood in
groundwater balance. Hydrological plans should be the federal context, where each institution at different
further promoted and considered as a cross-sectional jurisdictional levels manages its own information.
tool in spatial and sectoral planning. In this matter, Therefore, although Act 27,275 establishes the right of
it is worth looking at good practices like the ones in access to public information for all state authorities and
the European Union, where hydrological plans are agencies, mechanisms must be established to ensure
actually environmental management instruments that transparency in the sharing of information between
all sectors should at least consult in the development jurisdictions and institutions, and with the general
of their own plans or projects, in order to minimize public. Such sharing would greatly facilitate analysis,
negative externalities and take advantage of synergies, decision making, and political action supported by
and thus optimize the use and impact of the resource citizen engagement, while improving the relationship
by all sectors, such as urban development, energy, between users and resource managers, reducing the
agriculture, and transport. likelihood of conflict.
In the context of increasing uncertainty due to climate A two-step approach is recommended. As
change and demand projections, hydrological planning a first step, and before further expanding
should be robust and flexible. Plans should pinpoint hydrometeorological networks, it is advisable to
specific problems, establish progressive improvement focus efforts on coordinating and systematizing
targets and realistic measures, and identify ways to existing data sets, improving the interconnectivity
pay for them according to realistic financing options. of networks, and developing and sharing decision-
Hydrological plans must go far beyond the mere making tools at the provincial and federal level.
assessment and costing of water works, which should The second step would be investing in further
be considered together with other nonstructural development of hydrometeorological infrastructure
measures to increase resilience and efficiency in and early warning systems (see infrastructure
how the resource is managed. Plans should include recommendations).
monitoring and evaluation mechanisms to correct and
adjust to changing realities. For both previous steps, it is essential to guarantee
operation and maintenance budgets to ensure their
A quantification analysis of the drainage infrastructure sustainability. This would allow a continuation of the
gap is recommended at both provincial and national data series and also the functionality of the decision-
levels. This analysis should be included in the next making tools and associated services (i.e., early
version of the National Water Plan to lay out the basis warning systems).
for developing more comprehensive flood mitigation
plans for specific areas that encompass watershed With expanded and more accurate data points, there
boundaries and cross administrative boundaries, will be more space to:
such as metropolitan settings. Women’s participation • Inform planning processes, starting with the basin
in the design of emergency plans and subsequent plans, but also including provincial water plans
post-event recovery strategies should be further and an updated National Water Plan. These tools
encouraged. will then be better related to the priority areas for
 137

intervention with specific investments in drought The next step should be to set the basis for a unified
resilience or flood mitigation. national data set, built upon the information of the
• Improve forecasting services for the agricultural different water quality parameters and pollution
sector, enhancing their ability to predict and sources. The compilation should include biological,
develop more resilient food-production strategies. chemical and morphological indicators that could
Undertaking this improvement implies the serve to calculate environmental flows to protect
development of monitoring systems, including those riparian species and aquatic ecosystems. Water
on the status of groundwater and surface water quality measurements could be complemented by
sources, as well as the measurement of distributed tools like remote sensing. Related to SDG target 6.6,
and delivered flows. The information generated moving ahead in promoting the study and mapping of
should include forecasts and alerts and thus
enable an efficient combined use of surface water, water-related ecosystems and water reserve areas in
snowmelt, and groundwater, making it possible replenishment zones is recommended.
to plan and implement more efficient programs Information should be collected in a systematized
that also contribute to reduce water-related manner, through water quality and quantity monitoring
conflicts. It is also essential to develop strategies
for communicating the information and forecasts programs. Defining these monitoring instruments
to the users, especially small-scale food producers. requires horizontal (interjurisdictional) and vertical
Information could be shared in the form of maps coordination, as well as cooperation within the
that allow variables or parameters of interest to national level authorities to determine the objectives
be shown at the national level and in detail at and scope of the program. Financing for these
the subnational level. For example, soil moisture programs ought to be guaranteed to allow continuous
and other indicators can be monitored to provide measurement campaigns, hence providing information
information on water excess and shortage on a on the resource’s evolution, a review of trends, and
periodic and seasonal predictive basis.
projections in different scenarios. In terms of quality, as
• The energy and river navigation sector could also a result of the laboratories’ locations, and now having
benefit from increased hydrological knowledge, most of the analytical capacity concentrated in CABA,
monitoring, and forecasting, as these are the Buenos Aires, Córdoba, and Santa Fe, it would be
basis for anticipating and preventing potential necessary to increase the analytical capacity in the rest
climate change and variability impacts associated
of the country.3
with extreme events and erosion. Collaboration
within the Plata Coordinating Intergovernmental
Committee, as well as reinforced implementation Water-Related Risks
of the strategic action program defined by the
organization, will help increase knowledge, as 5. Establish a dam safety regulatory framework
mentioned. and strengthen the Dam Safety Regulatory
Agency.
• Progress must be made in assessing and quantifying
demands for all water uses. In coordination with Complexity: Low Priority: High
other sectors, existing and projected water demands With regard to dam safety, and pending the passage
per basin are key pieces of information to develop
solid water resources management plans that at of the act presented to Congress by the ORSEP, this
the same time could contribute to the development study recommends extending that agency’s jurisdiction
of specific regions. This information should be through agreements with all jurisdictions and/or basin
systematized in databases and incorporated in organizations. This would allow for economies of scale
water balances. As the largest water user in many in terms of costs and function centralization related to
provinces and basins, special attention needs to dam safety control in a single entity. This would ensure
be paid to irrigation. The preparation of adequate a level of standardization of dam safety surveillance
cadasters of irrigation users, updated periodically, and control procedures across the national territory,
with granted rights contrasted with calibrated water
taking advantage of the high skills and experience of
balances.
this institution.
It is important to move forward in understanding
The National Register of Dams and Technical
the causes of the deterioration of water quality to
Archives, proposed in the draft law, would allow to
prepare an updated and complete water quality map
obtain a diagnosis of the status of infrastructure, and
of the country’s main water bodies, identify pollution
systematically plan for the recovery and preventive
causes, and propose remediation measures. SDG
maintenance of existing infrastructure, starting with
indicator 6.3.2, whose guidance levels should be set
that in the most critical state. It is important to
for each basin or region, may be used to assess the
ensure the implementation of agreements between
status of water quality in relation to its reference
competent authorities, operators, and the national
condition.
authority, as well as to secure the necessary
 138 ARGENTINA: VALUING WATER

resources to implement them. The development the Province of Buenos Aires, the high cost of the
of control, supervision, and monitoring systems infrastructure, and the fact that the main group of
of dams, dikes, and reservoirs is fundamental as direct beneficiaries is clearly defined, would allow
it increases predictive capacity for emergencies, the creation of a trust fund financed by future capital
fostering an active exchange between the gains generated by expected increases in yields and
operators and ORSEP. It is essential to ensure strong production, as a result of the reduction in the impact of
interinstitutional communication and coordination recurrent floods in such areas.
around this initiative, considering the participation of
7. Urban planning processes must integrate in a
different sectors, authority levels, jurisdictions, and
rational manner hydrological risk zoning and
stakeholders with diverse responsibilities, resources,
the expansion of water and sanitation services.
and competencies.
Complexity: Medium Priority: Gradual implementation
6. Promote adequate land use management as
a cost-effective measure to reduce flood risk , It is necessary to advance in a process of updating
and explore innovative financing mechanisms the flood plans of the 100 main cities in the country.
for drainage works. In doing so, multisectoral coordination between
sector institutions at the municipal and provincial
Complexity: Low Priority: Gradual implementation
levels in metropolitan areas is recommended for
As some provinces are already doing, expanding the more rational urban growth. In order to be effective,
practice of preparing and implementing land use urban and hydrological planning tools, should be
management plans, with strong user participation in well coordinated. The National System for Integrative
planning and management processes, could reduce Risk Management (SINAGIR) works as an example
the flood risk in rural areas. Yet, it is also possible to of interinstitutional coordination for disaster risk
consider steps beyond the promotion of good practices. management of institutions down to the municipal
Enacting and effectively applying legislation regarding level and citizen organizations. But this collaboration
agricultural activities to decrease the risk of erosion should be extended for infrastructure planning or for
and flooding is an option that could be considered. the development of early warning systems, starting
This legislation should include the recognition of joint with coordination among jurisdictions concerning data
liabilities of owners and tenants for fines and sanctions, sharing and fostering joint decision-making processes.
as well as for damages to third parties. Mandatory In this sense, also utilities’ plans to expand water and
compliance with land use plans could particularly sanitation services should be well aligned, not only
be considered in sensitive areas. In these cases, the with hydrologic plans to ensure resilience to floods by
example of Uruguay may be considered as a reference newly serviced areas, but also with urban planning
(see appendix E). Currently, periodic remote sensing instruments that should include the social housing
monitoring of land use changes is carried out in some projects in areas with guaranteed, secured services.
provinces.4 This tool can be expanded to all areas
The determination of such risk zoning areas should be
and applied to ensure compliance with land use
based on evidence and data, such as updated flood
plans. All in all, more emphasis needs to be placed
maps. But the greatest challenge is compliance with
on consensual provincial planning for collective
such zoning criteria, and planning for the associated
improvements in agricultural land use, promoting crop
costs. This is a must to prevent flood impacts, so
rotation for efficient use of water resources according
administrations should work to minimize exceptions to
to availability, and soil conservation practices
the rule. Slum upgrading programs should consider flood
Large drainage works in rural areas could be risk mitigation as a central driver for change in high-risk
co-financed by direct beneficiaries. This type of areas, considering relocation alternatives if necessary.
expensive infrastructure could be implemented
Specifically, for floods originated from river overflow,
through innovative financial instruments involving the
it is mandatory to have clear criteria and operative
participation of direct beneficiaries. As exemplified
procedures to determine the natural flood plain or
in the drainage works of the Salado River Basin in

Drought-related issues are addressed in recommendations 1–4. Strengthening resilience to droughts relates to a
stronger water resources management system, expanding knowledge on service delivery and the dynamics of
water demand from the different sectors, particularly in times of scarcity. For this, improvements are required in
management infrastructure, data collection and recording, and processing and monitoring capabilities.
 139

hydrologic public domain, already defined by law, in and investors that are so necessary today in Argentina.
order to effectively control settlements in buffer areas. It would provide a certain level of standardization
Water authorities should define and implement these and guidance for the different regulatory frameworks
limits on the ground, considering associated flood across the country. The provinces would adhere to the
return periods to prevent impacts associated to urban law on a voluntary basis, provided that it set the right
or agricultural areas. Again these efforts should trespass incentives for them to do so.
administrative borders and be applied at the basin level.
To achieve consensus around this new law, it is
necessary to establish a national advisory committee
Water Services for water supply and sanitation, formed of provincial
8. A new water supply and sanitation regulatory and national stakeholders. The committee6 would serve
framework is fundamental to ensuring as the main sectoral consultative entity for important
inclusive access to efficient and sustainable issues, such as the elaboration of the law itself, the
water and sanitation services. corresponding regulations, the next update of the
National Water and Sanitation Plan, and the criteria
Complexity: High Priority: High
for defining financial contributions and the transfer of
The enabling environment for the delivery of adequate funds to operators.
drinking water and sanitation services starts with It would be advisable for the new law to establish a
building consensus among all stakeholders on water system of equivalent subsidies or matching grants,
utilities as credible entities providing good services so that national contributions for infrastructure are
with efficiency, sustainability, and good financial distributed under well-defined and transparent criteria.
performance.5 This common vision does not yet exist In the system of matching grants, earmarked federal
in Argentina. As discussed in chapter 5, efficiency funds would be matched by provincial funds. The
improvements in operation would release enough criteria for eligibility for the investments would be
funds for up to nearly 50 percent of the additional revised with the advisory committee. They should
amount required to reach full coverage by 2030, above be based on need, with funds distributed either
what is invested today. In a complex macroeconomic equally (so each nonserved person receives the same
environment, such as the current one, worsened by the share) or progressively (in inverse relation to GDP
COVID–19 crisis, this way of obtaining funding is more per capita). Other criteria such as population density
justifiable than ever. It would imply that providers and economies of scale could play a role in defining
operate under commercial criteria and aspire not to the priorities. It would also be advisable that provider
depend on subsidies for operation. They measure the performance and achievement of objectives, measured
water that they produce and sell, charge for what they by progress on the key performance indicators included
supply, reduce significant losses in their systems, and in the utilities’ Management and Results Plans (PGRs),
satisfy customers with affordable and good service. be incorporated into the criteria for allocating funds
This shared vision at national, provincial, and sectoral and determining the type of financing to be granted. In
levels should encompass not only utility managers but addition to different efficiency indicators, an essential
also municipal and provincial governments, regulators, indicator to comply with is transparency. Operators
and the national government. This consensus is should be incentivized to publish their financial
being built today through strategic planning exercises statements, technical and financial reports, and
conducted by the main provincial utilities (under progress in complying with key performance indicators
management and results plans), but there is space related to the quality of service provision and technical
for the national government to keep fostering wide and financial sustainability.
participatory dialogue, ensuring the right level of sector The new law should be accompanied by the
representativeness. establishment of a specific fund for investments in
This consensus should be reflected in a new drinking water and sanitation. Given the need to achieve
regulatory instrument on water and sanitation that multiyear predictability for future public investments in
states the new vision and the overarching objectives drinking water and sanitation, to ensure the efficiency of
for the sector, and also sets equitable rules for the the funds committed, the national government should
distribution of national public funds to the different analyze options to incorporate an escrow fund that, over
jurisdictions, based on objective criteria related to a specified time period, ensures the financing of sector
needs, the capacity of the provinces to finance and investments. This instrument would be included in the
provide sustainable services, and the performance proposed drinking water and sanitation law. The fund
of the recipients. The consensus would establish the would not restrict the management of public accounts
legitimate, predictable conditions for decision makers or impose a shift of financing from other destinations
 140 ARGENTINA: VALUING WATER

without reasonable justification. If needed, authorities applies to nationally funded water infrastructure, if
could then evaluate the possibility of extending the it will be managed and operated by the provinces.
existing Water Resources Infrastructure Trust Fund This is necessary to increase the level of ownership
financed by gas taxes. and avoid mismatches in the execution of priorities,
among others. For this purpose, intensive training and
In parallel, at the provincial level, regulatory
capacity building is needed in areas such as project
frameworks should be updated, the role of regulators
design, procurement, financial management, social
reinforced, and capacity to deliver infrastructure
and environmental management, and monitoring
strengthened. The updated frameworks should clarify
and evaluation. Capacity building in project design is
the roles of provincial regulators, so that they are
particularly necessary to increase the quantity and
publicly recognized as the institutions responsible for
quality of ready-to-bid projects and minimize the
controlling the provision of adequate drinking water
chances of later substantial project modifications. The
and sanitation services to citizens. Regulators should
importance of the involvement of utilities is essential
be tasked with setting and monitoring performance
in the design and control phases of the infrastructure
standards, establishing mechanisms to determine
that they will have to operate.
tariffs, ensuring that providers adopt defined paths to
universal access and affordability with a special focus 9. Update the National Water Supply and
on the poor, incorporating a social tariff (or proposing Sanitation Plan to set realistic, achievable
specific subsidies to the government), and monitoring milestones toward SDG targets 6.1, 6.2 and 6.3.
the overall performance of service providers. Complexity: Low Priority: Medium
Regulators should also have a role in building
operators’ capacity and reporting regularly to provincial Realistic planning needs to take into consideration
government authorities, among others, on service the financing possibilities of the sector and the fact
delivery performance. Provincial regulators should that, at present, the easiest source of financing relies
maintain their financial independence by receiving a on efficiency gains within the sector. Also, the plan
portion of tariff income to cover their own recurrent should establish prioritization criteria for investments,
costs. considering their economic, environmental, and social
aspects. Once implemented, investment performance
Consequently, there is a need to build capacity among
should be evaluated. This prioritization is essential
regulators of drinking water and sanitation—and also
and can identify the areas with greatest need or the
in the National Directorate of Drinking Water and
areas of greatest impact on human capital due to the
Sanitation (DNAPyS) and in project-executing agencies.
lack of water and sanitation, as this report pointed out
Regulators should be equipped with the skilled staff
in previous chapters. In these and other aspects, the
needed to perform the abovementioned functions
updated National Water Supply and Sanitation Plan
included in the updated regulatory frameworks.
would also benefit from focusing on the following
This capacity-building strategy could also focus on
areas:
promoting knowledge transfer to smaller utilities
• Establish guidelines to expand services
beyond the large provincial ones, and help in grouping
in the “barrios populares,” or vulnerable
together small operators to overcome the current neighborhoods. This strategy should be aligned
atomization of service provision. The DNAPyS should with the utility regulatory frameworks and
expand its functions to coordinate with provinces promoted by provincial authorities to facilitate
in the implementation of the updated National access to areas more difficult to reach and to
Water Supply and Sanitation Plan, provide stronger promote connectivity. The extension of branch
technical assistance in the design of drinking water networks in areas difficult to access could be
and sanitation systems in the weaker jurisdictions and realized through existing initiatives with more or
rural areas, keep expanding the national information less success (such as the AySA water + work or
sewer + work programs), as well as using other
systems in water and sanitation to cover a wider range
strategies undertaken by similar utilities in the
of providers, and promote guidelines and courses on region such as SABESP in São Paulo (Brazil), with
best practices in the sector (design, procurement, performance-based contracts for joint ventures
development of new technologies, and smart utilities). formed by social and engineering firms, to ensure
connectivity. Key elements for these strategies
The progressive transfer of execution functions
are, in any case, sensitization and communication
for infrastructure financed at the federal level to with users on the importance of connecting, the
the provinces is also recommended. The transfer requirements to do so, and, most important,
could take place either at the utility level or at the financial support covering the full cost of low-
corresponding provincial ministry responsible for income household connections through targeted
water and sanitation services. This recommendation subsidies.
 141

• Expand the WSS national information system by These reforms can be summarized in four steps,
including smaller operators in towns and rural in order of priority: (1) promote rational planning
areas, and also including health care centers and through utility business plans, (2) implement such
schools across the country. For starters, a national plans, including key efficiency measures such as
information system like the one existing for main the reduction of losses and energy consumption,
utilities in urban areas could be expanded to
the rural areas. The Information System for Water (3) establish affordable tariff regimes that promote
and Sanitation in Rural Areas (SIASAR) promoted efficient and rational consumption, and (4) introduce
by the World Bank and the Inter-American modernization measures and seize circular economy
Development Bank has been implemented opportunities.
successfully across the LAC region, but not yet • Expand and promote the implementation
in Argentina. It could provide the basis for more of PGRs. National and provincial governments
targeted interventions in rural areas. Expansion of should continue to promote the preparation of
decentralized solutions, such as the ones provided PGRs across provinces as a solid enforceable
under a World Bank project to benefit the dispersed planning tool at the utility level, to help reach
Wichi population in northern Chaco, should be universal access, operational efficiency, and financial
further promoted in areas with similar characteristics. sustainability. These plans are essential policy
The national information system would feature data instruments to help achieve the SDGs, outlining the
on the coverage and quality of water and sanitation path the provider should follow through a series
services in health centers and schools throughout of thoughtful measures. After the PGR has been
the country, for which coordination with the health developed, the focus should be on the adequate
and education ministries is required. Programs to implementation of a logical sequence of structural
raise awareness of the importance of handwashing and nonstructural measures that lead to compliance
and hygiene should be part of these strategies. with key performance indicators that help keep
• Address the atomization of low-performance track of progress (such as nonrevenue water and
service providers through different strategies. cost recovery). The signing of a binding agreement
The larger utilities could provide technical assistance involving all stakeholders, with the understanding
services to the smallest ones, or agglomeration that all parties will follow the milestones defined in
strategies could achieve either economies of scale the PGR, could serve to ensure compliance. The new
in service provision, or most important, higher legal framework, and more particularly the system
quality in the level of service. Sometimes it may of matching grants proposed, could help to influence
be feasible to consider expanding the jurisdiction the implementation of these plans.
area of well-performing utilities in urban areas, as • Among the most relevant actions that
was done in the case of AySA. There are successful providers must take is the reduction of
experiences of regionalizing utilities in LAC that physical and commercial losses, and of energy
could be taken as examples, such as those in consumption. The first actions should be aimed
Colombia or Brazil (World Bank 2017c). at completing macro measurement at production
• Gather the data needed to better understand sites, before advancing toward the goal of reducing
gender inequalities related to water and nonrevenue water. The need for increased micro-
their causes, and to propose actions to promote metering is clear and widespread in the sector,
women’s participation in both utilities and in but must be accompanied by the readjustment of
water sector organizations. Increasing women’s tariff regimes. Otherwise, micro-metering could be
participation in water utilities benefits communities detrimental to operational sustainability or could
and the organizations themselves. Women generate disproportionate billing increases for
benefit by gaining access to more and better jobs. some users. The implementation of energy audits
Communities gain better representation in water- is the first step leading to a reduction in energy
managing agencies, which, according to evidence, consumption.
can lead to better community relations, among
other benefits. A national survey on women’s In addition, the efficiency measures explained below
participation in the sector will provide data to design would help increase drought resilience. Some water
tailored strategies. Expanding existing initiatives, utilities in dry areas must drastically increase the
similar to the ones being carried out by AySA to efficiency of resource provision, reducing physical
promote a stronger representation of women losses, measuring consumption, and applying a tariff
in managerial positions, to other utilities, is also structure that promotes rational consumption. These
recommended. are measures included in the utilities’ PRGs.
10. Implement key policy reforms aiming at • Revise tariff update policies, as well as
increased efficiency in the provision of water operation subsidies, if any, ensuring that the
supply and sanitation services. financing flow maintains its real value in case
of inflation. This policy should parallel efforts
Complexity: Medium Priority: High toward greater efficiency in revenue collection
 142 ARGENTINA: VALUING WATER

and in operations, as well as the improvement of In addition to efficiency measures and consequent
other indicators that today are far from efficient. savings, in complex macroeconomic contexts, creativity
Progressive volumetric tariffs based on actual is necessary in the search for financing instruments.
metered consumption promote rational use. The The analysis of the economic and financial viability of
regulatory frameworks should also provide for irrigation projects must be exhaustive and detailed,
adequate mechanisms to adjust tariffs to changes
in costs and for the establishment of a social tariff considering all possible risks in order to clear any doubt
system for households with insufficient capacity regarding profitability. Innovative forms of financing
to pay, before rate increases exceed their abilities. to mobilize private resources have been proposed, for
Examples of cross-subsidies can be found across example, in the Meseta Intermedia Project in Chubut,
different countries in the LAC region (IADB 2020). with financing through the establishment of a trust
• Pave the way toward smart utilities and the that draws on future capital gains generated by the
application of circular economy principles. irrigation infrastructure and associated services.
Digital solutions are essential tools to streamline Formulas for access to financing by producers should
processes, save transaction costs, and increase be expanded, for either individuals or associations in
resilience by responding faster to shocks. In general
terms, it is necessary to carry out multicriteria studies the form of consortia. Access can aim at producers’
on such features as evaluating the frequency of own institutional strengthening or expansion, or
leaks, pipe materials, service pressures, and age, at efficiency improvement investments. These
to define priority areas for network rehabilitation. formulas may lead to the establishment of reciprocal
Developing asset management plans is also central guarantee companies that grant guarantees to
to optimize maintenance costs and maximize the life improve their financing conditions through banks,
of goods and equipment. So are technological tools capital markets, and suppliers, or other public
that allow remote command of operations, including financial institutions outside the Financial Entities
not only supervisory control and data acquisition
Act, as in the case of the Fund for Transformation
(SCADA) systems but also telemetric sensors for the
operation of both water and sewerage networks. and Growth in Mendoza. In addition, these initiatives
could support land titling and regulation programs,
Circular economy strategies would leverage the making the granting of concessions more flexible,
great opportunities the sector offers in terms of always based on knowledge of the availability of the
climate change adaptation and mitigation. Low- resource, especially in provinces with many occupied
cost operating treatment plants (without aeration) or leased farms dependent on irrigation (FAO and
can recover up to 100 percent of operating costs PROSAP 2015).
by generating electricity from biogas produced in
anaerobic digestion tanks (World Bank 2015). The A series of factors external to the irrigation sector must
combination of this process with the digestion of be controlled to ensure the viability of new irrigation
urban organic waste (co-digestion) further increases schemes, such as guaranteeing the existence of
energy production and reduces total plant emissions. adequate communication and logistic infrastructure for
These opportunities, or others such as the production the swift delivery of products, thus improving market
of nitrogen fertilizers from sewage sludge, are still accessibility. Regarding these, political action is key to
untapped in Argentina. Promoting wastewater reuse achieving trade agreements that allow access to new
in irrigation and expanding on successful experiences markets under competitive conditions. Coordination
is also recommended. This should encourage the and alignment at provincial and federal levels are
implementation of wastewater reuse legislation fundamental to realizing the great potential of irrigated
regarding both the obligations of providers in terms agriculture for the territorial and socioeconomic
of effluent treatment and health requirements in the development of the country.
application of effluents to different crops (FAO and The corresponding provincial administrations should
PROSAP 2015). The promotion of wastewater reuse propose measures that generate incentives for greater
is an essential climate change adaptation measure, efficiency in water use. Thus, the water rights system
saving large amounts of water in zones where the could be reinforced by, for instance, establishing
resource is under stress. taxes that cover negative externalities (pollution and
overexploitation) or creating payments for water use
11. Improve the enabling environment to (such as for the volume delivered) that would allow
facilitate investments in irrigation. recovering the costs of administering the resource.
Complexity: High Priority: Medium Promoting more active exchange of experiences
and good practices in the irrigation sector with more
advanced provinces is recommended.
 143

Water Infrastructure Green and gray flood mitigation infrastructure.

Infrastructure for flood mitigation, in specific areas
Strategic Considerations of high recurrence and social impact such as the
and Priority Areas AMBA (the CABA and Quilmes), Chaco, Corrientes,
Formosa, Rosario, Santa Fe, or other flood-prone
The analysis conducted in table 6.9, chapter 6, enables cities in the La Plata Basin, should be a priority,
preliminary strategic recommendations regarding emphasizing riverine provinces with gaps in river
investments in water infrastructure. These are shoreline protection infrastructure. In such areas,
summarized below: this type of infrastructure can have significant social
Increase storage infrastructure​(hydropower impacts, alleviating chronic losses of well-being
and multipurpose). The implementation of a among vulnerable populations. But flood mitigation
strategy to increase the installed power capacity for infrastructure does not just entail dykes, drainage
hydroelectricity by 3 gigawatts by 2030 depends on networks and pumping stations. Interventions should
the economic, financial, and environmental viability of place greater emphasis on retention and storage
large projects. Although there is potential (identified in and should consider combinations of green and gray
chapter 4) and specific projects at an advanced stage infrastructure conceived in the framework of the
of feasibility and design, the viability of these projects river basin. This means working beyond municipal
will depend on the local and national economic administrative boundaries and seeking optimal
context. The fact that these projects are multipurpose, solutions at the basin level that link upstream and
allowing the use of the resource for irrigation, drinking downstream phenomena (for example, retaining
water, industrial use, or even recreational uses, upstream and draining downstream). Strategies like
should increase their feasibility, provided that their those of the “sponge cities” in flat and humid areas
environmental impacts are acceptable. of China can be promoted, where natural or artificial
water bodies are developed in parks and gardens to
Efficiency investments in irrigated agriculture. reduce peak flows. Urban regions such as the AMBA,
This intervention would have large positive impacts for example, could collaborate with municipalities
in priority areas suffering water stress (Catamarca, at the basin level regarding the use of riverbanks,
Córdoba, La Pampa, La Rioja, Mendoza, San Juan, riverside parks, wetlands, and green roofs. These
Santa Fe, and Santiago del Estero). As irrigation is nature-based solutions are most effective when
by far the largest water consumer, investments to combined with the implementation of early warning
achieve greater efficiency in already existing schemes systems in densely populated and highly exposed
should be a priority due to their great potential to areas.
save water. Yet, upgrading or developing new water
resource management infrastructure and rehabilitating In urban settings, it is essential to understand the links
and improving drainage systems contribute to the between drainage and sewerage systems. To prevent
same goals. This type of infrastructure needs to be fecal contamination in systems that theoretically drain
conceived within the framework of robust drought into water courses, or to avoid drains discharging
resilience plans, given the imminent changes in into sewers, thus diluting fecal water in the sewage
climate diminishing the hydrologic buffer capacity network (with negative impacts on the operation of
of water resources. In increasing efficiency, it is also treatment plants), the first step is to carefully assess
recommended to improve measurement and control the status of networks. This would in turn inform
of the water served, factoring in the availability of the interventions to mitigate problems. Solutions might
resource in the criteria for supplying water to farmers, include the separation of networks, the provision of
for which improving hydrological knowledge by the wide enough sewers, or the design of combined sewer
entities in charge (measure 4 above) is also a must. overflows, in addition to storage tanks to retain peak
flows and minimize the dumping of contaminated
Complementary irrigation for rainfed crops. In the
liquids into waterways. Regulations banning the
short term, complementary irrigation may not have
connection of sewers to rainwater drainage must exist
the same impacts in terms of distributional effects,
and be enforced.
employment generation, or territorial development.
Yet, given the downstream effects of dry spells on It is also necessary to revise design criteria for drainage
agricultural production and therefore on the macro systems and flood mitigation infrastructure that may
economy (explained in chapter 2), this type of be obsolete, and incorporate updated analysis of flood
infrastructure is an essential buffer to mitigate such return periods according to climate change projections
impacts in nonirrigated areas of high agricultural and changes in land use.
production.
 144 ARGENTINA: VALUING WATER

Hydrometeorological infrastructure and early and quality. Training programs, in the context of
warning systems. These interventions are low- the institutional strengthening measures mentioned
hanging fruits in terms of their cost-benefit ratios, even above, promoted by water authorities to staff from
considering the associated operation and maintenance local utilities and consultancies, could be an option to
budgets that need to be secured when considering consider.
them. Early warning systems in urban areas of the La
Investments in wastewater treatment plants.
Plata River Basin or in areas susceptible to flash floods
Wastewater treatment plants should be prioritized in
are relatively small investments in relation to the
areas with existing sewers that discharge to nearby
benefits they can provide to exposed populations and
water bodies with large environmental and social
assets. Warnings issued with sufficient anticipation and
impacts downstream. Areas where the sewerage
accuracy could save lives and also reduce considerably
network discharges to receiving water bodies with high
economic losses. It is critical to increase the density
dilution capacity, or where there are no clear identified
of groundwater and nivo-glacial measuring stations,
environmental and social impacts downstream,
especially in arid regions, as strategic resources with
could be considered in a second stage. In any case,
an important regulatory function. It is also important
treatment and discharge levels should adapt to the
to increase the density of water quality monitoring
self-purification capacity of receiving water bodies.
stations. This would allow decision makers to improve
their knowledge of impacts on water quantity and Rehabilitation of drinking water and sanitation
quality and to have greater control over the resource networks. While this is a relatively inexpensive
and more capacity to react to problems and enforce intervention, it could prevent systems from
existing regulations. deteriorating in the near future, thus saving future
resources to replace or rebuild key infrastructure.
Investments in extending water supply and
Access to safely managed sanitation goes
sanitation services. Metropolitan areas of large
beyond sewers and wastewater treatment
cities, especially the AMBA and the Northwest and
plants. Sewerage is the preferred option to provide
Northeast regions, are the areas where the expansion
sanitation services to most citizens. However, its
of water and sanitation infrastructure can have the
high cost means that it takes time to universalize
greatest social impacts and do the most to reduce
this solution. On-site solutions for domestic
the vulnerability of the poor, especially in the face of
effluent management, a current option for those
phenomena such as COVID–19. This crisis represents
unconnected to networks, deserve more attention.
an opportunity for the country to analyze the direction
When implemented well, these solutions can be
of its investments and assign greater importance to
counted toward the SDG goal of having “access
the drinking water and sanitation sector. Investing in
to safely managed sanitation.” They are
the sector also has enormous potential for job creation
particularly suitable for rural and urban areas with
and should figure prominently in policy discussions
low population density. Nonnetworked sanitation
regarding short-term economic stimulus.
services should be regulated and controlled from the
For water supply and sanitation services, interventions design and construction of septic tanks to desludging,
should aim at increasing connectivity, with a focus transportation, and treatment services in order to
on the most vulnerable neighborhoods. This requires ensure the safe disposal of treated sludge and to
smart strategies to connect households in informal minimize contamination of soil, surface water, and
settlements, which could be pursued as part of more aquifers in peri-urban settlements. The World Bank
comprehensive urban upgrading interventions to has developed guidelines on best practices that could
tackle a series of other related challenges—property, be taken as a first step in regulating the management
drainage, solid waste, health, education, and social of on-site sanitation facilities (Tayler 2018).
services—in the context of integrated urban planning. It
This recommendation, together with the prioritization
is important that connectivity and expansion of branch
criteria provided for the construction of new
networks is planned in synchronization with other main
wastewater treatment plants above, could significantly
water and sanitation infrastructure to guarantee the
lower the investment amount needed to close the
quality of the service (water treatment plants, main
water security gaps under the active scenario outlined
trunks, secondary network, sewers, and wastewater
in chapter 6 of this report.
treatment plants). Epidemiological evaluation studies
related to the health impact of consuming water with Deepening the Paraná-Paraguay waterway. The
small concentrations of arsenic (< 50 micrograms/ renewal of the Paraná-Paraguay waterway concession
liter) or data on contamination of sources with high faces various alternatives for increasing navigation
levels of nitrates, can help to identify areas of urgent depth and, therefore, transportation yields. The
action. Last, engineering designs for water supply alternatives must be evaluated in a comprehensive
and sanitation projects should also gain in coherence manner, including the development of the section to
 145

the north of Santa Fe and regions not directly along the Ministerio de Planificación Federal, Infraestructura
basin, such as the Atlantic ports. It is essential that y Servicios. Período auditado: 2008–2014. AGN.
the cost-benefit analysis considers potential impacts https://www.agn.gob.ar​/sites/default/files​
on the economic development of the country, based /informes/informe_070_2015​.pdf.
on experience of the past 25 years. Financial analysis
FAO (Food and Agriculture Organization) and PROSAP.
will surely show that it is possible to self-finance
2015. Estudio del potencial de ampliación del
investments, and that adequate toll rates can make a
riego en Argentina. Buenos Aires: FAO.
significant contribution.
IADB (Banco Interamericano de Desarrollo). 2020.
Análisis Crítico de las Políticas Aplicadas en
Notes Latinoamérica en el Sector Agua y Saneamiento.
1. Appendix D contains a summary of useful international IADB. https://publications.iadb.org/publications​
experiences. The selection of parameters and limits or /spanish/document/An%C3%A1lisis-critico-de​
reference values will depend on the characteristics of -las-politicas-aplicadas-en-Latinoamerica-en-el​
the resource, water bodies, and the socioeconomic ac- -sector-agua-y-saneamiento.pdf.
tivity carried out in the area. The use of standard meth-
ods for communicating water quality at the national Tayler, Kevin. 2018. Faecal Sludge and Septage
level would make it possible to compare and evaluate Treatment: A Guide for Low and Middle Income
spatial-­temporal evolution, the efficiency of pollution Countries. Warwickshire: Practical Action
control and protection programs, among others. Publishing Ltd. p. 250.
2. The General National Auditor 2008–14 highlighted
World Bank. 2015. Wastewater to Energy Processes:
the lack of coordination between COHIFE and COFEMA
(AGN 2015).
A Technical Note for Utility Managers in East
Asia and Pacific Countries. Washington, DC:
3. Other provinces visited during this study, like Chaco or World Bank. http://documents1.worldbank.
Corrientes, also have laboratories but the cost of the org/curated/pt/489941468188683153/pdf​
reactive is too high.
/ACS13221-v1-Revised-Box393171B-PUBLIC​
4. Mostly developed by the private sector in agricultural -Wastewater-to-Energy-Report-Main-Report.pdf.
areas. In addition, the National Commission for Space
Activities (CONAE) has developed a new tool that World Bank. 2017a. Argentina—Plan Belgrano
provides ­essential information for planning and decision- Water and Sanitation Services Development
making on agricultural land use. More information at: Project: Additional Financing and Restructuring.
https://www.argentina.gob.ar/noticias/mapas-de​ Washington, DC: World Bank. https://hubs​
-estatus​-hidrico-elaborados-con-informacion-satelital .worldbank.org/docs/imagebank/pages​
(consulted in March 2021). /docprofile.aspx?nodeid=27271341.
5. More details in appendix B. World Bank. 2017b. Diagnóstico de la Prestación de
6. The Federal Sanitation Council provided for in Law 24,583 Servicios de Agua, Saneamiento y Electricidad
sets a precedent for this recommendation. en 10 Provincias del Norte Argentino.
Recomendaciones para la Mejora del Sector,
Buenos Aires. Washington, DC: World Bank Group.
References World Bank. 2017c. Joining Forces for Better Services?
AGN (Auditoría General de la Nación). 2015. When, Why, and How Water and Sanitation
Subsecretaría de Recursos Hídricos de la Utilities Can Benefit from Working Together.
Secretaría de Obras Públicas, dependiente del Washington, DC: World Bank.
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