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Case study 3 - The Pilcomayo river basin study: Argentina, Bolivia, Paraguay

I. Introduction
II. Designing the study
III. Executing the study
IV. Implementing the recommendations
V. Lessons learned
VI. Bibliography

PROBLEM SUMMARY

Developing a Multinational River Basin Plan for the Multipurpose Use of the Pilcomayo (Argentina, Bolivia, Paraguay)

The Pilcomayo River Basin study (1975-77) was undertaken to find ways to regulate and develop the Pilcomayo River and its 272,000 km2 trinational basin. DRD helped Argentina's National Institute for Water Science and Technology-INCyTH, Paraguay's Undersecretary of the Foreign Ministry for Economic Affairs, and Bolivia's Ministry of Transportation, Communication, and Civil Aeronautics develop proposals for US$1.07 billion in hydroelectric generation investments. Besides eight dams, the study team also proposed irrigation projects, agricultural development schemes, and cattle-development programs. A follow-up study (1979-80) of a smaller tripartite area within the basin, which was requested by the three governments, proposed an additional US$380 million in investments,

Negotiations over these development proposals proceeded within a three-tier management structure devised to allow the three countries maximum latitude in decisions affecting within-country projects and to nurture political understanding through technical discussions.

ARGENTINA, BOLIVIA, PARAGUAY - PILCOMAYO RIVER BASIN STUDY - Fact Sheet

Project area:

272,000 km2

Population:

1,313,000 (early 1970s)

Physical characteristics:


- Land form-vegetation units:



Andean steppes



Pastures in temperate valleys



Mountain rain forests



Forests in transition



Dry Chaco forests



Moist Chaco savannas


- Elevation range: 52 to 5,000 m


- Land capability classification;



Arable soils: 29%



Non-arable soils: 71%

Duration of Project:


Preliminary Mission: 5/1973


Preparatory Mission: 1974


Fieldwork: 2/1975-10/1977 (Phases I and II)


1/1979-12/1980 (Follow-up Tripartite study)


Publication of Reports: 1977 and 1980

Technical contributions:

DRD disciplines (33)

Number of DRD Experts


Phases I & II
(43)

Tripartite
(23)

Total
(66)

Agricultural Planner Project Chief Phases I and II

1

-

1

Ag. Economist

2

3

5

Ag: Engineer (cattle production)

-

1

1

Agro-industry Specialist

1

2

3

Agro-meteorologist

1

-

1

Agronomist

1

-

1

Basic Infrastructure Specialist

-

1

1

Cartographer

2

-

2

Cattle Production Specialist

2

1

3

Computer Programmer

1

-

1

Dryland Agriculture Specialist

-

1

1

Ecologist (vegetation)

1

-

1

Economist (including industry specialist)

1

1

2

Edaphologist

3

2

5

Environmental Management Specialist

1

1

2

Fluviomorphologist

2

-

2

Forest Production Specialist

2

1

3

Geologist

1

-

1

Ground Water Geologist

2

1

3

Hydroelectric Project Planner

1

-

1

Hydrologist

1

-

1

Irrigation Specialist

1

1

2

Pastures Specialist

1

-

1

Project Formulation Specialist

-

2

2

Regional Economist

3

-

3

Regional Planner

1

1

2

Sanitary Engineer

2

-

2

Sedimentologist

2

1

3

Sociologist

2

-

2

Soil Conservationist

1

-

1

Transportation Planner

2

1

3

Water Resources Economist

1

-

1

Water Resources Engineer (including Project Chief Tripartite Study)

1

2

3

Total professional person-months:


Phases I & II

Tripartite

Total

DRD:

257

99

257

National Counterpart:

N/A

100

100 (partial)

Financial contribution:


Phases I & II
US$

Tripartite
US$

Total
US$

DRD

275,000

307,200

582,200

UNDP

750,300

-

750,300

National Counterparts:




Government of Argentina

752,100


752,100

Government of Bolivia

588,400


588,400

Government of Paraguay

622,900


622,900

Combined contribution executed individually


300,000


Combined contribution executed through OAS/DRD


147,200


Total investment in projects proposed:

Phases I & II US$

Tripartite US$

Total US$

1,072,000,000

348,208,250

1,420,208,250

MAP 1

I. Introduction

The study of the integrated development of any multinational river basin poses technical and political challenges. But while most of the numerous studies of shared rivers are limited to elements such as navigation, hydroelectric production, health factors, or pollution, the Pilcomayo study's broader focus covered the integral regulation of the Pilcomayo River and the socio-economic development of the basin. The emphasis was on the rational, multipurpose use of water and other resources, but the study also identified constraints to development, ways to mobilize human resources and capital, and investment projects that all three participating countries would find politically acceptable.

Political, economic, physical, and institutional factors all had to be considered in the design of such a far-reaching study. Moreover, the project was initiated in a sensitive period: the legacy of the Chaco War still lingered and such projects as the bi-national Itaipu hydropower project launched by Brazil and Paraguay on the Parana River were newly under way.

Methodologically, several accomplishments deserve mention:

- Building trilateral institutional support for a multi-sectoral and multinational project;

- Creating an international technical team to investigate and carry out studies on a large river basin where climate, water resources, geological formations, and topographical conditions vary widely;

- Focussing the study of the basin on small, promising areas;

- Creating a forum in which the countries have both technical and political representation and using this forum to discuss technical problems, as well as to establish the necessary bases for treating political problems;

- Establishing regional accounts in substantial areas in each country that do not correspond to existing administrative units (See Glossary.);

- Preparing packages of complementary projects for an empty area;

- Integrating specific development planning activities for each country's territory without losing the regional perspective; and

- Developing close ties with the international lenders likely to implement the project proposals.

The Pilcomayo is one of the most complex sub-basins of the Plata River system. It covers 272,000 km2 (107,000 sq. mi.), about 8.4 percent of the Plata River basin. It is bound on the west by the Bolivian Andes, on the south by the Bermejo River basin, on the north by the Amazon River basin and portions of the Paraguayan Chaco, and on the east by the Paraguay River basin. (See Map 1.)

The area is shared by Argentina, Bolivia, and Paraguay in the following proportions:

Country

Area km2

Percent of Whole

Argentina

79,000

29

Bolivia

98,000

36

Paraguay

95,000

35


272,000

100

The two major divisions are the upper basin, which lies almost completely in Bolivian territory and ranges from 5,700 to 400 meters above sea level, and the Chaco region, an extensive plain that slopes smoothly toward the Paraguay River. For the last 40 kilometers in the upper basin, the Pilcomayo River serves as the boundary between Argentina and Bolivia. Then, from Hito Esmeralda, where the boundaries of the three riparian countries intersect, the river forms the border between Argentina and Paraguay. The river channel is well defined for 180 km below the trinational intersection. But the combination of heavy sedimentation and a very low gradient cause it to overflow its channel, forming several temporary bodies of water that are drained by evaporation, infiltration, and several small rivers. About 200 km downstream, the Lower Pilcomayo River originates. Fed by local rainfall and groundwater, it has no hydrological relation to the Upper Pilcomayo. Finally, the Lower Pilcomayo drains into the Paraguay River about 10 km downstream of Asuncion, Paraguay.

The estimated 98 million tons of sediment that the Upper Pilcomayo annually deposits in the Chaco Plain comes from geologic and man-caused erosion in the upper basin. Each year, the point at which the river overflows its banks moves further upstream. Between 1968 and 1976, that point receded more than 100 km (62.5 mi) upriver.

Rainfall in the upper basin varies from 200 mm in the west to 850 mm near Villamontes. Rainfall is lowest in the western part of the lower basin, averaging 400 mm at the border between Bolivia and Paraguay and increasing to 1,300 mm around the Paraguay River. On the relatively impermeable soils of the lower basin, numerous temporary marshes form during heavy rains. This makes agriculture difficult, but cattle-raising can be profitable on these natural pastures.

Owing to the variability of the river regime and heavy sedimentation, most uses of the river would require the construction of dams to regulate the river discharge and sedimentation. Thus, the impact of these structural modifications on floodplains, the river's retrogression, the erosion of the river bed below the dam, aquatic and forest life, and other environmental components and processes must be thoroughly understood.

The basin's total population is 1.3 million, some 951,000 of whom are concentrated in the Bolivian part of the upper basin. The average of 7.4 inhabitants per square kilometer in this area is misleading, however, since everyone lives in the steep and narrow agricultural valleys and in two important cities (Sucre and Potosi) in the northeastern basin. Outside these population centers, vast areas are empty. In the lower basin, the density diminishes to a low of 2,8 inhabitants per square kilometer in Argentina and 0.5 inhabitants per square kilometer in Paraguay.

The Trans Chaco Highway bordering the semi-arid middle portion of the Pilcomayo River basin in Paraguay.

Cattle grazing around a groundwater-fed watering hole in the Lower Pilcomayo basin.

Agriculture, cattle production, and population centers have considerable potential for expansion despite these caveats. All three countries have millions of hectares of agricultural and grazing land with high production potential, and utilizing river water for irrigation could invigorate the economies of the region and the three nations. Yet, MULTINATIONAL BASIN-DEVELOPMENT STRATEGIES WILL BE ADOPTED ONLY IF ALL THREE COUNTRIES CLEARLY UNDERSTAND WHAT EACH STANDS TO GAIN AND LOSE IN RELATION TO THE OTHERS BY SHARING WATER RESOURCES. In practical terms, this means initiating an international dialog on development while accommodating strictly national uses of basin resources other than the Pilcomayo's water. For this reason, the historical and political context of the Pilcomayo basin project is of utmost importance.

The riparian countries' interest in developing the Pilcomayo basin dates back to the seventh Inter-American Conference held in Montevideo, Uruguay, in 1933. This initiative failed amid the regional political tension resulting from the Chaco War between Bolivia and Paraguay. In 1941, Argentina, Paraguay, and Bolivia agreed to create an International Tripartite Commission to deal with the Pilcomayo River basin development, But not until the mid-1960s did the conditions in the region augur well for joint cooperative efforts. In February of 1967, the Ministers of Foreign Affairs of Argentina, Bolivia, Brazil, Paraguay, and Uruguay agreed to study the Plata River basin with a view to executing multinational, bilateral, and national projects in the region. The Ministers also established the Intergovernmental/Coordinating Committee (CIC) to oversee the joint activities of the basin countries and agreed to coordinate requests to international organizations for technical and financial support,

In the late 1960s, what is now the OAS Department of Regional Development (DRD) produced several hydro-logical and climatological studies of the Plata basin at the CIC's request. It also surveyed and analyzed the basin's natural resources and infrastructure. Between 1969 and 1971, DRD identified areas within the basin where development lagged far below the potential, Among the 13 areas recommended for more detailed studies were three river basins of the Plata System: the Bermejo, the Upper Paraguay, and the Pilcomayo.

In July of 1972, Argentina, Bolivia, and Paraguay agreed to undertake a joint study of the Pilcomayo basin and requested international technical and financial assistance to:

1. Investigate the Pilcomayo River basin's water and other natural resources;

2. Obtain a broad knowledge of the basin's physical, social, and economic characteristics to determine the optimal water use;

3. Determine which water projects would be necessary to assure the continuity of the Pilcomayo River up to the point where it merges with the Paraguay River;

4. Determine the navigational potential of the Pilcomayo River and find ways to improve navigation on the Paraguay River through flow regulation, sediment control, and forecasting of river flow;

5. Obtain information on the suitability of the basin's groundwater for town water supplies and small-scale irrigation;

6. Evaluate aquatic resources and wildlife so that measures to protect, preserve, and develop the resources could be designed;

7. Formulate criteria and measures for rational resource management and pollution control;

8. Improve the economic, social, and cultural conditions in the basin;

9. Formulate and recommend preliminary projects for the use of the basin's water resources in combination with other human and natural resources; and prepare short-, medium-, and long-term programs to regulate the river's flow and reduce soil erosion and sediment, supply drinking water to towns and livestock settlements, establish drainage and irrigation systems, and produce hydropower energy; and

10. Train personnel of the three basin countries to execute the project's recommendations and to carry out other similar projects in the Plata basin.

In December of 1972, the three Ministers of Foreign Affairs reaffirmed the importance of the Pilcomayo basin study, and the Intergovernmental Coordinating Committee asked the United Nations Development Programme (UNDP) to initiate field activities. These project activities started on February 1, 1975. The UNDP designated the Inter-American Development Bank (IDB) as the executing agency, and the Bank contracted the OAS/DRD to implement the work. Study headquarters was established in Asuncion, Paraguay, and regional offices were set up in Formosa, Argentina, and Tarija, Bolivia.

II. Designing the study

A. The Preliminary Mission

During 1973, a preliminary mission composed of technicians from DRD, the IDB, and the UNDP visited the three project countries to define the study's objectives and operating structure. Reviewing available data to confirm the technical feasibility of the study and identify data gaps, it decided that the study should focus on water and soil resources related to flood control and irrigation, agriculture, livestock development, and transportation infrastructure.

National counterpart agencies were appointed by each government. Argentina named the National Institute for Water Science and Technology (INCyTH), Bolivia chose the Ministry of Transportation, and Paraguay designated the Subsecretariat for Economic Affairs of the Ministry of Foreign Affairs.

An important factor examined by the preliminary mission and the countries was the institutional structure needed to manage the study. A multinational development effort has little chance of success unless an "equivalence of interests" among the countries involved can be obtained. To obtain such equivalence, each country should clearly define its national interests at the project's outset and decide what financial, political, or economic price it is ready to pay to implement the joint project. However, in this case, the information available on the basin's physical, and socio-economic resources was scarce, so the project participants had no way of knowing if an equivalence of interests could be reached.

In 1974, creating a tripartite development commission for the Pilcomayo study would have been premature. What was needed instead was informal technical and political dialog among the countries and with international lenders. Only when the countries better understood the basin's potential and their own options could they envision common development possibilities and develop the institutional capabilities needed to carry out the project proposals.

B. The Organizational Structure

The organizational structure ultimately adopted for the study reflected these interrelated political and technical concerns. (See Figure 1.) Each country was to create a national commission to provide the technical, financial, and administrative support needed to implement the study. Each national commission would work with international experts provided by the DRD under the direction of its international director, forming a technical unit in each country. A coordinating commission composed of representatives of each of the three governments and each of the three international agencies would oversee and periodically revise the study's activities. A novel feature of the organizational structure was the executive committee, composed of the national technical directors, the DRD technical director, and the IDB project coordinator. Charged with the technical management of the study, the group frequently recommended to the coordinating commission solutions to problems which were there by defused before becoming politicized.

This project structure afforded several advantages. First, key decisions were left up to the countries. Each country selected its own national technical director and its representatives on the coordinating commission. Through the national commissions, each country took responsibility for project continuity at the national level and for accommodating provincial authorities' participation. In addition, including international agencies in the coordinating commission and requiring unanimous approval before a recommendation could be implemented fostered mutual cooperation and a broad planning perspective.

C. Special Design Problems

Other technical factors were also considered in the study design phase. Since the Pilcomayo extends over such a vast area, the time and funds spent on information gathering, analysis, and planning had to be carefully minded, and conducting detailed studies for the entire basin was out of the question. Yet, since the use of the river waters in the upper basin in Bolivia would affect the two downstream countries, their rights and goals had to be formally recognized. Furthermore, the three countries were to remain free to pursue in-country development that had no impact on the river waters. Existing agreements governing the use of water in the Pilcomayo and Plata River basins also had to be taken into account: accords existed between Argentina and Bolivia (1971) and between Argentina and Paraguay (1958, 1967, and 1971), but not between Bolivia and Paraguay.

Given these factors, the study's focus was narrowed to development actions affecting the direct use of water from the river. The study team also recognized that resolving water-rights issues was a delicate political task that could not be rushed. Each country's political and economic interests had to be integrated thoroughly enough to permit technical, administrative, and financial cooperation. Lines of authority and responsibility had to be clearly drawn, and technical tasks and their political context clearly defined.

Once the basic institutional arrangement was accepted, two major determinants for study execution were identified:

- The priority geographical and technical areas would have to be selected carefully to maximize project impact since major water development projects would eventually compete for scarce financial and human resources at the national level.

- Formal agreements would be necessary at each step, given geopolitical factors and the considerable investment and maintenance costs all three countries would have to assume.

The study was then divided into two parts. In Phase I, natural resources, socio-economic conditions, the production system, and the infrastructure would be evaluated, and development options would be presented to the national authorities. In Phase II, which would begin after the countries had decided which economic sectors to stress and the degree of development to be expected, the development proposals would be revised and the countries would select the project alternatives most compatible with regional and national objectives. (Figure 2, Methodological Organization, shows graphically the main elements of the study and their relationships to each other.)

Figure 1 - ORGANIZATIONAL STRUCTURE

III. Executing the study

A. Phase I

The Pilcomayo basin study illustrates the necessity and process of narrowing down a study's focus from a large area to smaller areas that have the potential to become centers of development. To select these smaller promising areas, the study team had to gather two different kinds of information - data on the natural resource endowment and its geographic distribution and data on the area's population, social and economic history, and physical and institutional infrastructure. It also had to study the plans national governments had for their respective portions of the basin. Accordingly, the team was divided into the natural resources unit and the socio-economic unit, each with a separate director accountable to the international director.

Figure 2 - METHODOLOGICAL ORGANIZATION

The natural resources unit's investigations covered climatology, surface hydrology, hydrogeology, sedimentology, fluviomorphology, soils, vegetation, and ecology. Two basic methodologies of particular note were the use of remote sensing in data-gathering and the integration of data collected by different countries using different mapping units and different scales.

The large size of the area, the lack of adequate access to large portions of it, and budget constraints made it necessary to rely on remote sensing information - both aerial photography and satellite imagery - for the general reconnaissance studies in soils, vegetation, and ecology. Through photo-interpretation, areas with soils and other environmental conditions suitable for agriculture and livestock development were identified. These analyses were then field-checked. Overall, the objective was to select areas ripe for development projects, not to carry out purely scientific or sectoral studies. Where available information supported the photo-interpretation, fieldwork was kept to a minimum. Similarly, no attempt was made to describe the physical features of soils or vegetation exhaustively, unless detailed information was needed to delimit the areas with the most development potential. (Map 2, showing potential land use is an example of the maps prepared to depict and interpret natural resource endowment.)

Assembling existing data from three different countries and making it compatible proved complicated and laborious. Since no general procedures or technical criteria had been set, the professional judgment of the international and national advisors and the general objectives of the study project served as guidelines for determining the level of detail needed to select the "most promising areas" and to present the research findings.

In some cases, the availability of detailed information on soils for an area in one country allowed the natural resources unit to infer the soils characteristics of a neighboring area in another country with reasonable certainty. In others, detailed information on one tiny area of the basin had to be ignored so the selection of the "most promising areas" was consistent and systematic on a basin-wide basis. Where the level of detail on various areas varied, the information was used to select the most promising areas but not published for use as reference. In general, making disparate data compatible forced the three national commissions and the international consultants to exchange information and opinions continually.

Compared to previous DRD studies, this one emphasized social and economic problems. Of methodological interest was the calculation of the value of regional production in the three national portions of the basin using information compiled for the study. After exhaustively analyzing regional activities, the team calculated the geographic product per capita for the three sub-national areas in the river basin, the services available to the respective populations, and the services needed. In Argentina and Paraguay, the special needs and opportunities of aboriginal populations were studied.

With respect to regional dynamics, all national plans, programs, and projects that could affect the basin region were analyzed along with regional economic and demographic trends. Through discussions with the national commissions, the team helped make regional projects (especially those involving physical infrastructure) compatible with national development plans. (See Table 1.)

Throughout Phase I, international consultants and permanent project team members visited each of the study's subcenters. (Figure 3 shows the timing of the international consultants' participation in the study.) These meetings revealed that some counterparts agencies constrained the national commissions' capacity to deal with multisectoral planning issues. Success in overcoming the constraints depended largely on how centralized each country's planning was. For example, Argentina's national commission worked directly with provincial planning offices. This arrangement facilitated the preparation of technical information under the auspices of INCyTH, which had gained provincial and national political support through consultations before presenting its technical ideas to the coordinating commission.

Salinity measurement of the water of the Pilcomayo River.

MAP 2

Table 1

ARGENTINA: IMPACT OF THE IDENTIFIED PROJECTS ON NATIONAL PRIORITIES


PROJECTS

PRIORITIES


Level of Project Impact

I
Increase Population and Productivity in the Frontier Areas

II
Increase Regional Exports

III
Increase the Income of the Rural Population

Dryland Agriculture in the Pocitos-Tartagal area

Medium

Very High

High

3rd

Irrigation in the Semi-arid Chaco

Very high

High

Medium

1st 3rd

Colonization of the Central Zone of Formosa Province

Medium

Very High

High


Production of Fruit and Vegetables in the Clorinda-Espinillo

Medium

High

Very High

5th

Dairy Operations in Pirané

Medium

Low

Very High

6th

Livestock Development in the Chaco

High

Very High

Medium

2nd

BOLIVIA: IMPACTS OF THE IDENTIFIED PROJECTS ON NATIONAL PRIORITIES


PROJECTS

PRIORITIES


Level of Project Impact

I
Increase Exports and/or Import Substitutes

II
Increase the Gross National Product

III
Increase the Income of the Rural Population

IV
Equalize Population

Irrigation and Agro-industrial Development in the High Basin

Medium

High

Very High

Medium

1st

Hydro-electrical Generation

Very High

Medium

Low

Low

3rd

Dryland Agriculture in the Villamontes-Yacuiba Area

Medium

Medium

High

Very High

4th

Irrigation in the Chaco

High

Medium

Medium

Very High

2nd

Livestock Development in the Chaco

High

Medium

Medium

High

3rd

PARAGUAY: IMPACTS OF THE IDENTIFIED PROJECTS ON NATIONAL PRIORITIES


PROJECTS

PRIORITIES


Level of Project Impact

I
Increase Population and Productivity in the Chaco

II
Increase Exports and/or Substitutes

III
Increase the Gross National Product

Irrigation in the Semi-arid Chaco

Very High

Medium

Medium

1st

Livestock Development

High

High

Medium

2nd

Agro-industrial Development in the Mennonite Area

High

Medium

Low

3rd

Enlargement of the Sugar-Production Area in Benjamin Aceval

Low

Medium

Low

4th

Figure 3 - CHRONOGRAM OF INTERNATIONAL TECHNICIAN ACTIVITIES, PILCOMAYO RIVER BASIN STUDY (1975-1977)

In contrast, the Bolivian and Paraguayan National Commissions depended much more on decisions made at the ministerial level. This made conducting sectoral activities difficult - a problem that was exacerbated by shortages of integrated development planners and detailed sectorally integrated technical information in these two countries.

To minimize these differences and to avoid lengthy technical discussions in the coordinating commission meetings, it was decided to hold meetings of the executive committee at least every two months to coordinate project activities, smooth differences of opinion, and prepare an integrated technical report for the coordinating commission.

Besides the informal training conducted through the work of national experts with international consultants, two international courses were held on water resources issues and project formulation. The Inter-American Center for Integrated Development of Land and Water Resources (CIDIAT) sponsored a seminar on water resources development in 1975, and DRD sponsored a course in Tarija, Bolivia, on project formulation and evaluation. Both activities helped the sectoral experts on the national commissions view their work in the overall context of the study.

The study activities were monitored primarily by the coordinating commission. Through regular meetings, the three governments adjusted the study's direction and resolved several political issues.

In September of 1975, the coordinating commission decided to expand the study's technical focus. As the distinct resource-based subdivisions within the basin became discernable, the commission accepted the technical unit's recommendation to give particular attention to the probable impacts of modifying the basin's natural vegetation, (See Map 3.) The commission decided to bring in additional experts to develop more information on sedimentation and fluviomorphological conditions and that certain development projects be taken to the pre-feasibility level instead of merely to the "profile level." (See Glossary.)

Broader political concerns also came to the fore at this point. The all-important issue of water-withdrawal rights was raised. At this stage, the Paraguayan portion of the basin was the least known of the three subregions, and most of the country's development efforts were directed to Itaipu's area of influence. Nevertheless, Paraguay wanted to keep its future options open in the Pilcomayo basin. Thus, although Argentina and Bolivia presented concrete proposals, further discussion on water-withdrawal rights was postponed until the riverine resources for each segment of the Pilcomayo could be documented and verified.

The workplan for the three-year Pilcomayo basin study called for the presentation of an interim Phase I report to the coordinating commission as soon as information on physical characteristics, socio-economic conditions, and development possibilities was analyzed. Completed in July of 1976, this report proposed basin-development strategies based on a preliminary diagnosis of the Pilcomayo basin's resources.

In the interim Phase I report, priority areas for development were identified within the basin. Cattle-raising, irrigated crop, and forest projects were proposed for these areas. The study team concluded that the availability of water drawn directly from the Pilcomayo River was the main determinant of each subarea's natural resource development potential and specified the additional technical information needed to resolve the water-withdrawal rights issue. Critical here was additional information on sediment deposits, the origin of the water in each segment of the river, flooding cycles, aquifer formation, and recharge characteristics.

B. Phase II

Responding to the Phase I report, the three countries approved proposals to carry basin-development strategies farther. They also directed the study team to identify national development projects not directly dependent on the extraction of water from the Pilcomayo and to further elaborate the type and scope of technical studies needed on the river system itself.

By March of 1977, the national commissions completed the field work on their portions of the basin and produced several sectoral reports. Three months later, the technical unit finished analyzing the region's natural resources, ecological subsystems, human resources, socio-economic conditions, and national development plans and projects.

A draft of the final report was presented to the coordinating commission in June of 1977. The report specified a wide range of development projects as highest priority. (See Map 4.) It also recommended carrying out further studies of eight proposed hydroelectric facilities in Bolivia that would generate 2,352 MW of electrical power, provide flood and sediment control in the lower basin, and irrigate approximately 180,000 ha. Further studies on water rights were also recommended.

MAP 3

MAP 4

1 HYDROELECTRIC PROJECTS

Dams: Icla - San José - Santa Elena
Machigua - Yuquirenda - Chorro
Pescado - Carrizal
Installed power: 2,350 MW
Cost: US$1,070 millions

2 INTEGRATED RURAL DEVELOPMENT AND IRRIGATION

Projects identified for five selected areas: Culpina-Incahuasi, Vitichi, Impora, La Lava-Hornos, Lequezana-Betanzos

3 IRRIGATION IN THE VILLAMONTES-SACHAPERA AREA

Reclamation of 50,000 ha for irrigated agriculture to produce oleaginous crops, alfalfa, citrus

4 DRY FARMING IN THE VILLAMONTES-YACUIBA AREA

Conversion of 50,000 ha of scrub forest into agricultural land for production of oleaginous crops and cotton farming

5 IRRIGATION IN ITIYURO

Reclamation of 6,000 ha for irrigated agriculture in the Province of Salta

6 DRY FARMING IN THE POCITOS-TARTAGAL AREA

Increase of existing cultivated areas to include products for extra-regional export

7 IRRIGATION IN THE BANDA SUR-TUCUMANCITO AREA

Reclamation of 50,000 ha for irrigated agricultural production of oleaginous crops, alfalfa, citrus, cotton

8 IRRIGATION IN THE ARGENTINE CHACO

Reclamation of 65,000 ha in selected areas for agricultural production of forage, cotton, and tobacco

9 YEMA LAGOON

Irrigation of 10,000 ha for the production of cotton, sorghum, corn, and alfalfa (possibility of expanding irrigated area to 30,000 ha)

10 COLONIZATION IN THE CENTRAL ZONE OF THE PROVINCE OF FORMOSA-ARGENTINA

Conversion of 50,000 ha of forested land for pastures and dry farming production of oleaginous crops, sorghum, cotton, and corn

11 REHABILITATION OF THE RIACHO PORTEÑO IRRIGATION SCHEME

with possibility of expanding the irrigated area by 40,000 ha

12 AGRICULTURAL DEVELOPMENT OF THE CLORINDA-ESPINILLO AREA

Agricultural diversification oriented Coward the production of subtropical fruits and vegetables

13 EXPANSION OF THE "BENJAMIN ACEVAL" SUGAR CANE AREA

Guarantee supply of raw materials so sugar mill capacity can be expanded

14 AGROINDUSTRIAL DEVELOPMENT OF MENNONITE COLONIES

Increase production of palo santo essence, tannin, cooking oil; create industrial capacity to produce spurge, sorghum, oleaginous flours, leather, and dairy products

The issue of preserving the physical continuity of the Pilcomayo River was also addressed. Without one or more reservoirs in the upper basin to regulate the river's flow, any channel between the Upper and Lower Pilcomayo Rivers would fill up with sediment. Before the three countries could construct a reservoir for flow regulation, precise topographic fieldwork would have to be carried out and a detailed fluviomorphological study undertaken.

The final report also proposed irrigation, agricultural, and agro-industry projects for the Bolivian section of the basin. Dryland agriculture was recommended for the piedmont. For the lower basin, irrigation, agriculture, cattle and milk production, and agro-industrial projects were identified for further study. These projects were evaluated qualitatively in view of the capital, manual labor, soil-protection measures, space, and timeframe each would require.

As specified by the coordinating commission in 1976, the level of project elaboration varied. Several projects were taken to the pre-feasibility level, while others were merely outlined and recommended for further study. All the projects were ranked according to their contribution to the three countries' national development plans.

Even though institutional deficiencies were great at both provincial (or departmental) and national levels, and the allocation of funds was centralized in all three countries, the study team did not propose setting up a tripartite authority to manage the integrated development of the river basin. In its judgment, the political climate was still not conducive to such an agreement. Nevertheless, the technical findings of the report confirmed the importance of technical information in political decision-making, and the study project's structure enabled the three countries to sustain cooperative development while data gaps were filled.

After the final report was released in July of 1977, the three governments jointly undertook some technical activities of common interest. Since then, Bolivia has implemented some of the recommendations stemming from these follow-up studies.

C. Follow-Up Studies

1. The Tripartite Area Study

The first activity resulting from the recommendations in the final report was a request from the three countries that DRD provide assistance in the execution of a detailed study of the so-called "tripartite zone" - an area included within a circle of 150-km radius from Hito Esmeralda (where the three countries' borders intersect). Besides indicating the three countries' willingness to continue frontier-integration activities in the basin, the new study would reveal the amount of land in each country that could be irrigated for agriculture at the lowest cost and the possibilities for joint agro-industrial ventures in the zone with the most potential for developing new water works to regulate the Pilcomayo's flow.

The study's objectives were to describe the most important socio-economic and physical characteristics of the area, to prepare a development strategy to be implemented in five-year periods over 20 years, and to elaborate on and coordinate the projects identified in the final report of the Pilcomayo basin study team. In this follow-up study, the institutional organization, the terms of country participation, and DRD's role were modelled on those of the Pilcomayo basin study. However, the OAS was the only international organization to participate. (The Chronogram of international technician activities in the tripartite study is shown in Figure 4.)

Several types of projects were prepared in this study. The technical units elaborated irrigation projects that had been identified by the Pilcomayo basin study team: 60,000 ha in Argentina and Paraguay and 30,000 ha in Bolivia. Dryland agricultural projects were identified for 80,000 ha in Argentina and 20,000 ha for Bolivia, Agro-forestry projects were identified for Paraguay on 20,000 ha where both wood and cattle could be produced, and several agro-industrial projects were proposed for Argentina and Paraguay. Other proposals were for the main highways and feeder roads needed to develop an estimated US$110 million in agricultural projects in the three countries and several basic education and public health projects.

2. Fluviomorphological Study and Ranking of Water Projects

The results obtained in this follow-up study prompted the three countries to ask DRD in 1980 to prepare a proposal for undertaking sedimentological and fluviomorphological studies and for ranking water projects. These studies, which the original Pilcomayo study team had recommended, would provide the countries with the information needed to negotiate concretely the development of the basin and the equitable use of the Pilcomayo River water. The proposal DRD prepared was discussed and amended at a coordinating commission meeting in late 1980 in Buenos Aires and formally approved in early 1981. Because the studies would cost an estimated US$2,800,000, the countries decided to submit this proposal officially to the Financial Fund for the Development of the Plata Basin (FONPLATA).

One serious problem arose in 1981, when one riparian country altered the river's course to use the flood waters of the Lower Pilcomayo, Since an understanding had been reached not to use the river's water until additional studies had been completed, coordinating commission meetings and negotiations with FONPLATA were suspended until the problem could be rectified amicably.

In 1983, the original hydrological conditions of the Lower Pilcomayo were restored. Soon the countries will be able to resume negotiations. Argentina has already assigned high priority to this study, while Bolivia and Paraguay are close to reaching a decision.

Figure 4 - CHRONOGRAM OF INTERNATIONAL TECHNICIAN ACTIVITIES, TRIPARTITE AREA STUDY (1979-1980)

Another follow-up activity - a major technical innovation - was the use of radioactive isotopes to trace surface and groundwater movement in the Pilcomayo River basin. With technical assistance from the International Atomic Energy Agency (IAEA) in Vienna, the three countries used deuterium, tritium, and oxygen-18 to determine whether infiltrated water from the Pilcomayo eventually makes its way into the Verde, Montelindo, Negro, Pilcomayo Inferior, and other Paraguayan rivers or instead moves south to feed Argentine rivers. They were also used to determine whether wells in the Chaco are recharged by water from the Pilcomayo, by rainfall, or both. These investigations were still in progress in 1983.

3. National Studies

Separately, the three countries have carried out follow-up activities proposed by the Pilcomayo basin study team. These projects do not require the use of the Pilcomayo River water.

The Government of Paraguay asked DRD as part of its 1980-81 biennial request to prepare action proposals for the Paraguayan area of the Pilcomayo basin. The DRD proposed integrated projects for production, infrastructure, and social services, the nature and location of which were guided by the Economic and Social Development Plan and the diagnosis prepared for the study area. Specifically, the study team recommended agricultural activities, cattle raising, a slaughterhouse, main and feeder roads, water resources development, and new basic health services, with a total investment of US$49 million.

IV. Implementing the recommendations

In May of 1978, the Government of Bolivia asked the IDB to partially finance a program of small irrigation projects proposed by the Pilcomayo basin study team for implementation in the upper river basin. The Ministry of Small Farmer Affairs and Agriculture of Bolivia (MACA) designated DRD as the executing agency of this two-year study, which began in early 1981.

This study team prepared feasibility studies for irrigation projects for San Lucas, Laitapi, and Padcoyo totalling US$2.9 million. The projects will enable approximately 700 families (3,500 people) to produce such basic food staples as corn, wheat, and beans, as well as apples and peaches for the national market.

Another possibility identified by the Pilcomayo basin study team was developed by the Government of Bolivia with the cooperation of the Government of Canada. Between the departments of Potosi and Chuquisaca on the main course of the Pilcomayo, a hydropower facility with 90,000 KW of generating capacity is to be built at a cost of US$150 million. By regulating the Pilcomayo River's flow, it will make it possible to irrigate an important area downstream in Villamontes. This project will require international financing.

In June of 1983, the President of the National Commission for the Integrated Development of the Chaco Region of Paraguay announced the approval of US$50 million for implementing the projects in the Paraguayan area of the Pilcomayo basin. These projects were recommended by the study team that worked in Paraguay in 1980 and 1981.

V. Lessons learned

The DESIGN STAGE of the study demonstrated the importance of:

1. Realizing that the time was not right to create a tripartite development commission for the Pilcomayo study. What was necessary first was informal technical and political dialog among the countries. Only when the countries better understood the basin's potential and their own options could they envision common development potentials.

2. Including international agencies in the coordinating commission and requiring unanimous approval before a recommendation could be implemented. This fostered cooperation and a broad planning perspective.

3. Narrowing the study's focus to development actions affecting the direct use of water from the river and recognizing that resolving water-rights issues was a delicate task that could not be rushed. Each country's potential and economic interests had to be integrated thoroughly before all three could pursue technical, administrative, and financial cooperation. Lines of authority and responsibility had to be clearly drawn, and technical tasks clearly defined within their political context.

4. Selecting priority geographical and technical areas so that major water development projects would not eventually compete for scarce financial and human resources at the national level.

5. Realizing that formal agreements would be necessary at each step. Geopolitical factors and the considerable investment and maintenance costs all three countries might have to assume left no alternative.

The EXECUTION STAGE of the study highlighted the advantages of:

1. Narrowing a study's focus from a large area to smaller areas that have the potential to become centers of development.

2. Relying on remote sensing information - both aerial photography and satellite imagery - for the general reconnaissance studies of natural resources. No attempt was made to describe the physical features of soils and vegetation exhaustively, unless detailed information was needed to delimit the areas with the most development potential.

3. Holding frequent executive committee meetings to discuss differences of opinion among coordinating commission members over technical issues. Assembling technical data from the three countries and making it compatible proved to be a complicated and laborious process, but the technical problems thus identified were ultimately resolved by the executive committee.

4. Calculating the value of regional production, services available to the subarea population, and services needed in the three national portions of the basin using information compiled especially for the project. This process made defining the regional strategy easier.

5. Analyzing all national plans, programs, and projects that could affect the basin, along with regional economic and demographic trends. Through discussions with the national commissions, the team helped make regional projects compatible with national plans.

The IMPLEMENTATION STAGE of the study proved the critical importance of:

1. Viewing the selection of the tripartite zone and a follow-up study as indications that the countries were making progress toward identifying common development potentials.

2. Creating a technical forum as the basis for future political discussions. Through the coordinating commission the countries continue to discuss development strategy and action officially but informally. While no tripartite authority yet exists, the open technical and political interchange of the coordinating commission and the growing history of successful joint decisions and actions have prepared the way for its creation. Meantime, it is likely that the three countries will create specific commissions to analyze and implement bilateral or trilateral projects.

Significantly, the Pilcomayo National Commissions were maintained during the period 1981 -83 while the issue of the Lower Pilcomayo's water diversion was being treated.

3. Defining technical projects precisely. Countries considering multinational ventures can agree upon their shared interests only when projects have been technically well defined. Mutual interests cannot be defined until national interests have been defined concretely in relation to each project under consideration. Previous general accords (such as the Plata Basin Treaty) can smooth the road toward this objective. However, agreements calling for the construction of a dam, the allocation of water rights, or other specific joint development projects cannot be reached until projects have been developed at least to the pre-feasibility level, Only when the countries have such highly detailed technical information can they commit national resources to multinational projects.

4. Recognizing that only when the national authorities of each country are able to assess the mutual development possibilities will the additional institutional capabilities necessary to execute the projects and programs materialize. Once this critical threshold is reached, the financial and human resources needed to undertake those projects and programs should also be evaluated.

VI. Bibliography

INTAL-BID. Proyectos Multinacionales de Infraestructura Física: Fórmulas Jurídicas Administrativas. Buenos Aires, INTAL, 1970.

OAS. General Secretariat/IAEA. Water Tracing with Environmental Isotopes. Washington, D.C., OAS, 1983 (unpublished).

OEA. Secretaría General. Aprovechamiento Múltiple de la Cuenca del Río Pilcomayo: 3ra. Fase, Programación para una Investigación de la Fluviomorfología y Sedimentología del Río Pilcomayo y Priorización de Obras Hidráulicas. Washington, D.C., 1983.

OEA. Secretaría General. Cuenca del Río de la Plata, Estudio para su Planificación y Desarrollo: Inventario de Datos Hidrológicos y Climatológicos. Washington, D.C., 1969.

OEA. Secretaría General. Cuenca del Río de la Plata, Estudio para su Planificación y Desarrollo: Inventario y Análisis de la Información Básica sobre Recursos Naturales. Washington, D.C., 1971.

OEA. Secretaría General/BID/PNUD/República Argentina/República de Bolivia/República del Paraguay. Cuenca del Río de la Plata, Estudio para su Planificación y Desarrollo: Aprovechamiento Múltiple de la Cuenca del Río Pilcomayo, Primera Etapa. Vols. I-IV. Washington, D.C., OEA, 1977.

OEA. Secretaría General/República Argentina/República de Bolivia/República del Paraguay. Cuenca del Río de la Plata, Estudio para su Planificación y Desarrollo: Aprovechamiento Múltiple de la Cuenca del Río Pilcomayo, Segunda Etapa. Vols. I-VII, Washington, D.C., OEA, 1980.

OEA/República del Paraguay. Desarrollo Regional del Area Paraguaya del Proyecto Pilcomayo. Washington, D.C., OEA, 1982.

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