Rural Water Systems, Water Resource Management and Community Organization in

Panama Kathryn Cheney July 24, 2014

Rural water boards in Panama, JAARs, face sustainability issues in various forms – primarily,

legal registration with the government, lack of administrative capacity to address new

legislative changes, and lack of access to sufficient funding, each of which prevent

autonomy in managing and improving rural aqueduct systems.

Panama’s Rural Water System

�  IDAAN and Juntas Administradoras de Acueductos Rurales, JAARs

�  24.7% of the population lives in rural areas

�  96% of urban population, 81% of rural population supplied water by aqueduct/water supply systems

�  Gravity-fed aqueducts from natural springs

Juntas Administradoras de Acueductos Rurales (JAAR)

�  Boards that administer, establish, and maintain community-organized and owned rural aqueduct systems

�  MINSA, supervising agency

�  3,700+ JAARs in the country

�  1994 Resolution 28 made JAARs legal entities

Rural Water Systems in Latin America

�  20% of rural Latin America does not have access to clean drinking water

�  25,000 rural water organizations in Central America

�  80,000 community organizations for water and sanitation in all of Latin America

�  Community organizations provide water to more than 40 million Latin Americans

The Legal Structure of Rural Water Boards in Panama

JAAR Registration Process 1.  Election of Junta Directiva,

with MINSA official present

2.  Preparation of Acceptance Fee Act, Articles of Incorporation, a Roll Call (of the election meeting), and signed JAAR Regulation document.

3.  Forms are signed and sent to the Directorate of Legal Services of MINSA, where the legal status of the JAAR is registered.

4.  Documentation of legal status is submitted to DISAPAS.

Issues With JAAR Registration

�  Lack of administrative capacity within JAARs, often already registered but do not have documentation

�  Registration process is often unknown by JAAR Junta Directiva

�  JAARs can only seek funding once they have the personería jurídica

�  Lack of MINSA personnel

Proposed Decree 40 of 2014 �  legally establishes three types of rural aqueduct

organizations: �  Juntas Administradoras de Acueductos Rurales (JAAR) �  Juntas Integradas de Acueductos Rurales (JIAR) �  Association of JAARs

�  Community designations �  rurales disperso �  rurales concentrado �  comunidades periurbano

�  Specifically requires registration with the government

�  Stricter regulations around tariffs and funds

Legal Obstacles for JAARs �  Financial regulations

�  Water chlorination requirement

�  Community designations and allowing businesses to source water from aqueducts

�  Water Concessions

Global WASH Funding �  $8.9 billion USD invested in WASH in 2009

Sanitation and Water Aid Commitments by MDG region, 2010

http://www.un.org/waterforlifedecade/pdf/glaas_report_2012_eng.pdf

WASH funding in Latin America

4.82

4.66 26.53 27.69

4.53 28.39

18.45 17.21 1.79

27.67

149.49 161.49

214.74

279.75

342.65

375.06

0

50

100

150

200

250

300

350

400

US

D, in

mil

lion

s

WASH Funding in Central America via Foundations and OECD countries, 2003-2011

Private Foundations

OECD

WASH Funding Panama

0.02 0.06 0.12 0.32 0.45

5.51

0

1

2

3

4

5

6

mill

ions

of U

S d

olla

rs

OECD Funding in Panama 2003-2011 Amount ($ millions) (excluding Japan)

OECD Funding in Panama 2003-2011 Amount ($ millions)

208.26

0

50

100

150

200

250

OECD Funding in Panama 2003-2011 Amount

($ millions) (including Japan)

Rural WASH Funding in Panama

�  Tariff system: $.50 - $5.00

�  $7.5 million USD from the Spanish Cooperation Fund

�  $4.495 million USD from the MDG Fund

�  $39.4 million USD from the World Bank

�  Small organizations, <$15,000 USD

Issues with Rural WASH Funding

�  Minimal access to small grants

�  No un-solicited proposals

�  Dichotomous focus on either the rural or urban sectors

Recommendations �  Communication of Registration Process and its

implications

�  Utilization of the JIAR and Association of JAARs mechanisms

�  Capacity building in accounting, fundraising, or organizational management

�  Funding alternatives for JAARs – micro-enterprise, micro-loans, fiscal sponsors

�  Increased technical assistance provision

Bibliography �  Braithwaite, B. (2009). A Case Study of Peace Corps Volunteers’ Initiative to Improve Rural Water System Management.

Michigan Technological University. �  Catholic Relief Services. (2013, March). Water Services that Last in Central America. Catholic Relief Services. Retrieved

from http://globalwaterinitiative.org/media/AchievingWaterServicesThatLastInCentralAmerica.pdf �  CLOCSAS, The Latin American Federation of Community Organizations for Water and Sanitation Services for Rolando Marín

| Managers Safe Water; Peru. (2012, April 19). The Red Agua Segura. Retrieved July 18, 2014, from http://www.gestoresdeaguasegura.org/noticias/clocsas-la-confederacion-latinoamericana-de-organizaciones-comunitarias-de-servicios-de-agua-y-saneamiento-por-rolando-marin/

�  FIGURE: Planes Estrategicos para el Sector de Agua Potable y Saneamiento: Sintesis de Panama. (2009). Inter-American Development Bank. Retrieved from http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=35521533

�  Funding Map | Panama. (2014). WASHfunders.org. Retrieved July 16, 2014, from http://www.washfunders.org/Funding-Map �  LA RESOLUCION no. 28: MINISTERIO DE SALUD. ESTABLECE NORMAS BASICAS PARA EL USO RACIONAL DEL AGUA DE

LOS ACUEDUCTOS RURALES PARA LA PROTECCION, CONSERVACION DE SUS FUENTES DE ABASTOS Y DE SU AREA DE INFLUENCIA Y LA ADMINISTRACION, OPERACION, Y MANTENIMIENTO DE ESTAS OBRAS, 22472 7 (1994).

�  Madrigal, R., Alpizar, F., & Schluter, A. (2011). Determinants of Performance in Rural Water Community Organizations in Costa Rica. World Development, 39(9), 1663–75.

�  National Environmental Authority. (2014). Autoridad Nacional Del Ambiente. Retrieved July 18, 2014, from http://www.anam.gob.pa/

�  Panama. (2014, July). CIA: The World Factbook. Retrieved July 3, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html

�  Panama-IDB, partners for more than 50 years. (2013, March 4). Inter-American Development Bank. Retrieved July 4, 2014, from http://www.iadb.org/en/news/webstories/2013-03-04/panama-idb-partners-for-more-than-50-years,10348.html

�  Pearce-Oroz, G. (2011). Rural Water Supply and Sanitation Challenges in Latin America for the Next Decade (p. 32). Lima, Peru: Water and Sanitation Program, the World Bank.

�  PN-L1042 : IDAAN Water and Sanitation Investment Program- Phase I. (n.d.). Inter-American Development Bank. Retrieved July 7, 2014, from http://www.iadb.org/en/projects/project-description-title,1303.html?id=pn-l1042

�  Reyes, M. (2014, July 8). Second Interview with Marisin Reyes from the Sub-Directorate of Water Supply and Sewerage (DISAPAS) under MINSA.

�  World Health Organization. (2012). GLAAS 2012 Report - UN-Water Global Analysis and Assessment of Sanitation and Drinking-Water: The Challenge of Extending and Sustaining Services (UN Water Report) (p. 112). Geneva, Switzerland. Retrieved from http://www.un.org/waterforlifedecade/pdf/glaas_report_2012_eng.pdf