Economical analysis in Júcar RiverBasin

EURO – RIOC

International Meeting on Water Framework DirectiveImplementation

Cracovia, 27-29 september 2004

Teodoro Estrela

Júcar River Basin Authority

3 600Water demand(hm3/year)

3 300Water resources(hm3/year)

370 000Irrigated land (ha)

1 400 000Equivalent populationdue to tourism(inhabitants)

4 360 000Population(inhabitants)

43 000Area (km2)

Júcar River Basin

GALICIA

PRINCIPADO DEA STURIAS

CANTABRIA

PAISVASCO

NAVARRA

ARAGON

CATALUÑA

VALENCIACASTILLA-LA MANCHA

MADRID

EXTREMA DURA

ANDALUCIA

MURCIA

BALEARES

CANARIAS

LA RIOJA

CEUTA

MELILLA

CASTILLA-LEON

Júcar

• Economic characterisation of water uses andscenarios 2015.

• Cost recovery analysis

• Methodological approach for “resource cost”and “environmental cost”

Economic Analysis of water use

Crops Total ha

Non irrigatedha

Irrigatedha

Waterconsumptio

n 10 6 m3

Dose N 10 3 Kg

Cereals 463 805 381 288 82 517 270 39 805

Olive 108 638 97 861 10 776 41 4 912

Vineyard 215 901 183 173 32 728 109 8 514

Vegetables 33 974 880 33 094 170 5 336

Citrus 212 172 0 212 172 1 092 59 387

Fruit trees non-citrus 144 023 108 587 35 436 130 6 565

Other crops 385 508 333 329 52 178 310 5 326

Scenarios of Total Gross pressures of Agriculture in 2015 in the Júcar RBD.Source: GDW, RBD Agriculture Forecast Model

Scenarios of pressures

Cost recovery analysis

• Institutional map of water services, responsibilities andapplied tariffs

• Aggregated cost recovery analysis for the whole Júcar RBD

• services of abstractions and conveyance of surfacewaters (high supply level)

• water distribution, wastewater collection and watertreatment services to urban users (low supply level)

• water distribution to agricultural users (low supplylevel)

• Detailed studies for main Júcar RBD unit demands: CaseBenageber-Loriguilla hydraulic system

SERVICE RESPONSIBILITY TARIFFS

Abstraction and conveyance ofsurface waters (dams and main

channels) River Basin Authority

Canon de regulación (regulation fee)Tarifa de utilización (distribution fee)

Wells(groundwater)

Service provided by Municipalities,Irrigation Associations or individual

users

Either by Municipalities or by IrrigationAssociations (see below)

Water distribution to urbanareas

Municipalities (with RegionalGovernments in some cases)

Tarifa de abastecimiento (urban watersupply fee)

Water distribution to irrigationIrrigation Associations (“public

entities” with delegatedmanagement)

Derrama (apportionment of taxes):Apportionment of expenditures

(according to cultivated ha, water use orcombination)

Wastewater collection andtreatment in urban areas

Municipalities and RegionalGovernment

Canon de saneamiento (sewage fee, onlyfor urban and industrial uses)

Control of dischargesRiver Basin Authority

Canon de control de vertidos(surveillance discharge and spill fee,only for urban and industrial uses)

Institutional map of water services, responsibilitiesand applied tariffs

Hydraulic infrastructure facilities for services ofabstractions and conveyance of surface waters

• Júcar RBA is in charge ofmanagement of each waterexploitation system

• Collection and organisation indatabases and GIS of data for the19 main hydraulic infrastructures(dams and channels)

Cost recovery of water distribution, wastewater collectionand water treatment services to urban users in Júcar RBD

0,021

0,699

1,05

0,012

0,698

0,29

1,00

57,14%

99,86%

89,46%

0,33

95,74%

0

0,2

0,4

0,6

0,8

1

1,2

Abstraction Distribution Wastewater treatment TOTAL COST

Costs Users collection % Cost recovery

Detailed case study: Benageber-Loriguillasystem

Costs and tariffs for urban usersof Valencia city

010203040506070

Abs

trac

tion

(dam

s)

Con

veya

nce

(cha

nnel

s)

Wat

erdi

stri

butio

n

Was

tew

ater

colle

ctio

nan

dtr

eatm

ent

Dis

char

ge

€cen

ts/m

3

0%

20%

40%

60%

80%

100%

Total cost Incomes from tariffs Recovery (%)

02468

101214

Abs

trac

tion

(dam

s)

Con

veya

nce

(cha

nnel

s)

Wat

erdi

stri

butio

n

Was

tew

ater

colle

ctio

nan

dtr

eatm

ent

Dis

char

ge

€cen

ts/m

30%

20%

40%

60%

80%

100%

Total cost Incomes from tariff Recovery (%)

Costs and tariffs for irrigation users ofCampo del Turia channel

Costs, tariffs and recovery for urban andagricultural users

Cost of water services

• Cost of water services according WFD:

• Financial (traditional approach)

• Resource (a methodological approach has beenproposed)

• Environmental (different approaches are beingdiscussed)

Resource cost

•The marginal opportunity cost of the resource (MOCR) ina certain location and time can be defined as the cost for thesystem of having available one less unit of resource.

• The assessment of the MOCR with hydro-economicmodels. They take into account resource availability,storage capacity, losses, return flows, surface and GWinteractions, and willingness-to-pay (or marginal economicvalue) of demand units.

•The MOCR is obtained by comparing the aggregatedbenefits of the system with the aggregated benefits thatwould occur if one less unit of water were available at agiven location and at a given time.

Traditional Irrigation systems (Citrics)

0,00,20,40,60,81,01,2

0 5 000 10 000 15 000

m3/ha/year

€/m

3

Mancha Oriental Aquifer

0,00,10,20,30,40,50,60,7

0 2 000 4 000 6 000 8 000

m3/ha/year

€/m

3

Annual demand economic functions

0.00.20.40.60.81.01.21.4

oct-4

0

oct-4

5

oct-5

0

oct-5

5

oct-6

0

oct-6

5

oct-7

0

oct-7

5

oct-8

0

oct-8

5

oct-9

0

oct-9

5

oct-0

0

mounth

€/m

3

Upper Jucar river0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

oct-4

0

oct-4

5

oct-5

0

oct-5

5

oct-6

0

oct-6

5

oct-7

0

oct-7

5

oct-8

0

oct-8

5

oct-9

0

oct-9

5

oct-0

0

mounth

€/m

3

Final Jucar river reach

0.00.20.40.60.81.01.21.4

oct-4

0

oct-4

5

oct-5

0

oct-5

5

oct-6

0

oct-6

5

oct-7

0

oct-7

5

oct-8

0

oct-8

5

oct-9

0

oct-9

5

oct-0

0

mounth

€/m

3

Upper Jucar river

Time evolution of MOCR in Júcar river system