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Chile will have to invest more than money to ensure its population's access to water
Friday, September 20, 2024 - 18:30
crédito foto CPI

Desalination, water reuse, artificial recharge of aquifers and a series of laws being processed in Congress are just the tip of the iceberg for this South American nation to access new sources of fresh water. They will have to convince the citizens that water resources have become scarcer and, therefore, more difficult to provide. Will the population be willing to pay for the investments and technologies that will give it water security?

“There is a better world, but it is very expensive.” The humorous phrase from 30 years ago by the Argentine comedy group Les Luthiers could soon become a bitter reality in Chile.

The South American country has been under the shadow of water scarcity for about 15 years, despite being one of the nations with the largest reserves of fresh water – glaciers – on the planet. For a society, it is not just about where the water is, but how it is obtained and directed to those who need it, which makes all the difference.

A few years ago, this nation reformed its Water Code again to incorporate a priority in the granting of water concessions to companies, called water use rights, which since 1981 have been granted free of charge and in perpetuity.

But the effects of climate change and the projection of a growing demand for different types of industries - especially agriculture, which requires between 70% and 80% of the available fresh water - are putting more and more pressure on natural sources of water, exacerbating a conflict that began in the nineties and that today, with the occurrence of extreme phenomena such as droughts and floods, is on top of most basins, pitting industries against human consumption and the environmental preservation of ecosystems.

This has meant that, for example, despite having 100% coverage of drinking water and 99% of wastewater treatment in its cities, today, 1.5 million people in the country do not have access to fresh water due to permanent droughts and lack of water infrastructure.

As a result, the Treasury must spend on water trucks, which carry water a couple of times a week to rural populations at a considerable cost: until 2020, the Ministry of the Interior reported that five regions of the country - Biobío, La Araucanía, Coquimbo, Valparaíso and El Maule - concentrated 83% of the total expenditure on water truck rentals, which amounted to $222 billion (almost US$ 240 million) in a decade.

THREE NEW SOURCES

In a country where water has become an increasingly scarce resource, Chile faces a complex and challenging water situation.

"The [Chilean water] panorama is a bit complex to analyze, because in the end there are many differences in the different regions and the characteristics of each one (...) and we are facing a scenario of uncertainty where we do not know much about what will happen going forward. There are forecasts, it is said that the drought will continue, but this uncertainty generates many challenges for infrastructure. How do we plan without really knowing what lies ahead and also thinking a little about the development models, which is what we want to generate as a country?" Gonzalo Pérez, Manager of the Studies Area of the Infrastructure Policy Council (CPI), a private entity that focuses on making long-term public policy proposals for infrastructure, tells AméricaEconomía .

With this in mind, the CPI published its paper “Infrastructure to confront drought, new sources,” prepared by the institution’s water resources committee, identifying three new sources of water: desalination, reuse and infiltration. According to its authors, the document realistically communicates the possibilities and limitations of these new water sources.

"So what we were looking for with this document was to be able to convey what these new sources really are and the scope of the solutions they can address," explains Pérez.

These solutions are intended as complements to existing ones - extraction from surface and underground sources and storage reservoirs - and not as replacements.

The CPI initiative underlines the importance of long-term planning in infrastructure, especially in a context where citizens tend to take basic services for granted until they fail. "And if you don't anticipate the minute they fail, if you're not developing new projects, it's already too late," warns the executive.

“New sources that provide water security are a key element to guarantee supply under different climatic conditions,” Pérez added.

PROGRESS IN DESALINATION

It was in the 1990s that the city of Antofagasta began using desalinated water from brackish continental water, and since then there are already 22 desalination plants operating in the country, capable of jointly processing 8,200 liters per second, both for drinking water and for water used in mining. There are another six desalination plants under construction and a dozen in preliminary evaluation, according to data from CPI and InvestChile.

Still, fears of adverse environmental effects from the brine resulting from the process, which triples normal salt levels in seawater, as well as the high cost of its energy-intensive use, are raising concerns in some quarters.

From the other side, although public opinion in areas with water shortages is relatively favorable to desalination, the sector lacks regulations.

In this regard, the country has made significant progress this month. The Senate's Water Resources, Desertification and Drought Committee concluded its vote in mid-September on the bill on the use of seawater for desalination.

"We are happy that the committee was able to approve the desalination project, which will be passed on to the Finance Committee and the Senate. This is very important news, because in Chile there was no legal system that regulated desalination processes in the context of the water crisis," said Senator Yasna Provoste, president of the committee, on September 12, celebrating the milestone.

The bill establishes a legal framework that defines salt water as a national good for public use and proposes a national desalination strategy. It also grants an important role to the Empresa Concesionaria de Servicios Sanitarios CHILE SA (ECONSSA) - a public limited company owned by the State of Chile, whose objective is to control and manage the contracts for the transfer of the right to exploit sanitary concessions in 9 regions of the country - and to the Ministry of Defense, in the regulation and authorization of concessions.

In terms of specific projects, progress is being made on the design of a desalination plant for the municipalities of La Serena and Coquimbo in the central-northern part of the country, which is in the final stages before entering environmental assessment. With an estimated cost of US$350 million, the project will benefit some 460,000 inhabitants, with a production capacity of 1,200 liters per second.

The tender is expected to take place in the fourth quarter of 2024, with an award scheduled for the second half of 2025.

BORIC WATER PROJECTS

The government of Gabriel Boric has stepped up efforts to address the water crisis. The General Directorate of Water (DGA) of the Ministry of Public Works is working on four crucial bills: the use of seawater for desalination, the regulation and promotion of wastewater treatment and reuse systems, water efficiency and climate change adaptation standards, and new amendments to the Water Code to improve oversight, since today the issues of water theft, use without permits, and use above the originally granted amounts are a growing problem, especially among irrigators.

In addition, a Climate Change Adaptation Plan for Water Resources is being developed in collaboration with FAO and with funding from the Green Climate Fund. “This plan seeks to improve water security, preserve water bodies and promote the sustainable use of the resource,” explains the DGA to AméricaEconomía.

A significant change in water management is to adopt a basin-based governance approach. Seven Strategic Water Resources Roundtables have already been established in various basins of the country, with the possibility of establishing four more in the second half of 2024. These roundtables bring together representatives of public services and local actors to identify problems and determine priority solutions.

The Water Code now requires that each basin – in Chile there are 102 main hydrographic basins – have a Strategic Water Resources Plan, updated every ten years or less, which includes hydrological modelling, water balance and aquifer recovery plans, among other aspects.

Nine studies have already been awarded for the preparation of these plans in various basins of the country.

“In a context of prolonged drought and extreme weather events, these initiatives represent a paradigm shift in water management in Chile. The challenge now lies in the effective implementation of these strategies and the ability to adapt to an uncertain water future,” concludes the DGA.

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Gwendolyn Ledger