---
title: quito already pays for its páramo. the open question is who else does
canonical_url: https://ensurance.app/guide/who-already-pays-for-quito
markdown_url: https://ensurance.app/guide/who-already-pays-for-quito.md
subtitle: ratepayers have funded fonag since 2000. the airport paid once. the sponge still needs a second layer
category: how-to
---

# quito already pays for its páramo. the open question is who else does

*ratepayers have funded fonag since 2000. the airport paid once. the sponge still needs a second layer*

If you searched **quito watershed**, the short answer is that the source already has a payor. If you pay an EPMAPS water bill, it is you. A slice of every bill in Quito has gone to the wet grass above the city since 2000. The open question is who else, beyond the household, pays their share.

There is no single Quito River. The **Quito watershed** is a set of páramos: high wet grassland and cushion bogs on Antisana, Cayambe-Coca above Papallacta, the Pita headwaters, and Pichincha–Atacazo. They fill four supply systems that are not connected to each other. EPMAPS puts páramo at 85% of the city's water; FONAG says about 90%. Either way, the sponge is the supply.

The fund that pays for it is not new, and it is not ours. It is **FONAG**, and it is already doing the work.

:::johnson
**quito built the household layer a quarter century ago. the commercial layer is still thin.** The airport, the brewer, the bottler, and the banks behind the pipes draw on the same grass the ratepayer already funds.

[see the live agent for the páramo quito drinks from →](/northern-andean-paramo.ecoregion?from=guide)
:::

## the quito watershed already has a payor

On 25 January 2000, Quito's water utility, then called EMAAP-Q, and The Nature Conservancy created a private mercantile trust built to last 80 years. The utility put in $20,000. TNC put in $1,000 and became a co-founder. USAID helped design it. Its name is the **Fondo para la Protección del Agua**, and everyone calls it FONAG.

The rule is simple: the people who drink the water pay to keep the source working, and they keep paying. EPMAPS started at 1% of revenue. Municipal Ordinance 199 of 2007 (some sources cite 213) raised that a quarter point a year to **2% of billing**. Since 2011, FONAG can spend up to 30% of each year's contributions and capitalizes about 70%, so the fund grows while it works.

The money, with its dates attached:

| measure | amount | as of |
|---|---|---|
| Endowment | $18.7 million | December 2018 (FONAG) |
| Endowment | about $30 million, yielding about $2.5 million a year | February 2025 (TNC) |
| Approved budget | $4,034,003.49 | 2024 (FONAG) |
| Third-party money leveraged | more than $650,000 | 2024 (FONAG) |

Those are different years and different measures. Don't add them up.

What the money buys is grass, water, and people. FONAG administers about 20,000 hectares (2018) across Antisana, Alto Pita, and Paluguillo. It took cattle and sheep off the páramo, and since 2017 it has been plugging century-old drains at the Pugllohuma bog so the peat can hold water again. It employs more than two dozen **guardapáramos**, páramo rangers hired from neighboring communities. A guardapáramo quoted by TNC, Lady Ulcuango, says the Polylepis woodland above the grass has a "great capacity to retain water." The guardapáramos are the people the ratepayer's 2% already pays.

TNC counts 32 water funds in Latin America built on this model. Santa Fe's ratepayer fund arrived about 13 years later; it is [the later cousin](/guide/who-already-pays-for-santa-fe?from=guide), not the template. The general concept, [payment for ecosystem services](/guide/what-payment-for-ecosystem-services-actually-is?from=guide), uses FONAG as its classic case. This post is about the city.

## who already pays

FONAG is not only households. Some of the city's biggest water users have been inside for years.

**EPMAPS and every household on its bill.** The anchor. About 87% of the endowment came from EPMAPS.

**Empresa Eléctrica Quito (EEQ).** The public power company runs hydro plants on rivers in the basin FONAG works in. It joined in 2001 at a contracted $45,000 a year and accounts for about 9% of the endowment.

**The Nature Conservancy.** Co-founder. On 27 April 2016 it donated the Paluguillo land, which in December 2018 became Ecuador's first Área de Protección Hídrica.

**Cervecería Nacional** (AB InBev). A constituent since 2003, contracted at $6,000 a year. By the brewer's own figure, a liter of beer took about 2.5 liters of water in 2022.

**Tesalia CBC.** A constituent since 2007, contracted at $7,000 a year, and a member of other water funds too. Its product is basin water.

**Quiport.** The airport's water comes from the Paluguillo plant on the Papallacta system. Under a 2023 agreement, Quiport paid FONAG **$42,000** to protect the corridor around that source, including support for 20 families in the Iguiñaro community. Andean bears walk the same land. The airport paid for the grass that fills its taps.

The EEQ, Cervecería Nacional, and Tesalia figures are **contract-era**: what each signed up for when it joined. We could not find what any pays today. The Quiport figure is one year's agreement, not an annual line.

The city also pays one upstream neighbor directly. Since 2001, EPMAPS has paid the Kichwa Comuna Oyacachi, which holds title to páramo that feeds the Salve Faccha reservoir, under an agreement that runs to 2049. Oyacachi and the Kitu Kara comunas are sovereign neighbors, not rows on anyone's payor map. Nothing here asks anything of them.

## does vs should

DOES means a payment on the record. SHOULD means a dependency on the record with no line into the source yet. SHOULD is a door, not an accusation.

| who | what they already pay (year-labeled) | what they depend on | status |
|---|---|---|---|
| EPMAPS and ratepayers | 2% of billing (Ordinance 199, 2007); about 87% of the endowment | All four supply systems | DOES |
| EEQ | $45,000/yr as contracted in 2001; current amount not found | River flow for its hydro plants | DOES, contract-era |
| Quiport | $42,000 (2023 agreement) | The Paluguillo plant and the corridor above it | DOES, one year on record |
| Cervecería Nacional | $6,000/yr as contracted in 2003; current amount not found | Process water, about 2.5 L per liter of beer (2022) | DOES, contract-era |
| Tesalia CBC | $7,000/yr as contracted in 2007; current amount not found | Basin water is the product | DOES, contract-era |
| ASUR (agreed to buy 46.5% of Quiport) | None on record | Will co-own the airport's dependency on Paluguillo | SHOULD (exposure) |
| Hotels and resorts | Termas Papallacta sponsors Fundación Oso Andino, not FONAG; city hotels not researched | Visitors on this water (the airport moved 5.4M passengers in 2023); the landscape and springs at the Papallacta intake | SHOULD (exposure) |
| Lenders: AFD, IDB, AECID | Nothing to the source on record | $39.3M of AFD credit in the first phase of Chalpi Grande (2021); Agua para Calderón at $124M (Feb 2025) or $130M (Feb 2026), figures conflict | SHOULD (exposure) |

The pattern is plain. The public side pays a percentage. The private side pays in thousands, on contracts signed decades ago, or not at all.

## what the first layer doesn't reach

Because a ratepayer fund has compounded since 2000, this conversation starts at "who else" rather than "whether."

**The commercial share.** Companies that brew, bottle, and fly on this water put in a sliver of what households do. Quiport's $42,000 is the only recent, dated commercial figure. That is not a scandal. It is an opening, and the precedent is already signed.

**The money behind the pipes.** French credit built the first phase of Chalpi Grande; Inter-American and Spanish money is in Agua para Calderón. Each pipe pays back only if the páramo above it keeps holding water. None of the three shows a line to the grass on any record we found.

**The risks one bill can't fence.** The Papallacta intakes sit in Napo province, outside the city's jurisdiction, beside the oil pipelines that spilled crude into Laguna de Papallacta in 2003. In the Cinto catchment, about 7,000 hectares of páramo were converted in 13 years. A household water bill shouldn't carry all of that alone.

**On the return figure.** You will see "$2.15 back for every $1." That is a preliminary result from one pilot in the Cinto catchment, on a western system supplying about 8% of the city. TNC's overview quotes it for FONAG as a whole; FONAG's own write-up presents it as a preliminary result from one pilot. We use the narrower reading. The case rests on a quarter-century record, not a multiplier from one valley.

## how to stack on what quito already pays

"Protect Quito" is a guilt trip. "Add a line to FONAG's work on the Paluguillo corridor" is a rung. Nobody needs a new program. Each reader below has one living thing, one person or office, and one next step.

1. **If you pay a Quito water bill, know what it buys.** Your 2% funds the Antisana, Alto Pita, and Paluguillo grass and the guardapáramos who walk it. The current dollar transfer isn't public anywhere we looked; asking EPMAPS or FONAG is how it gets published. That rung costs nothing.
2. **If your company is already a constituent, bring the number up to date.** A contract-era $6,000 or $7,000 a year is a door already open. The next rung is a current, published figure sized to the water you draw.
3. **If your company draws Quito water and isn't in, become a FONAG water-footprint ally.** It's the route Quiport and GM OBB took, and FONAG's Technical Secretariat runs it: [fonag.org.ec](https://www.fonag.org.ec/web/1590-2/). Start with FONAG, not with us. [Corporate water stewardship is not a restored basin](/guide/corporate-water-stewardship-is-not-a-restored-basin?from=guide) explains why paying the source beats an offset claim.
4. **If you are about to co-own the airport, make 2023 recurring.** ASUR is set to inherit a dependency on the Paluguillo plant and the bear corridor above it. One year's agreement becomes a standing line.
5. **If you finance the pipes or fund as a foundation, fund the grass behind them.** FONAG already leverages third-party money, and TNC is the partner, not the competition. [How to start paying for the nature you depend on](/guide/how-to-start-paying-for-the-nature-you-depend-on?from=guide) is the general playbook.

The household that asks about the 2%, the brewer that updates its contract, and the airport that renews are on one ladder. Most of those rungs already have someone from Quito standing on them.

## where ensurance fits, and where it doesn't yet

In **[ensurance](/explore?from=guide)**, an **agent** is an onchain account for one place, people, or purpose, and a **certificate** funds one named agent. The live parent for Quito's páramo is [northern-andean-paramo.ecoregion](/northern-andean-paramo.ecoregion?from=guide). There is no Quito certificate. A Quito line that routes commercial money into FONAG's existing work (the corridor, the guardapáramos, the rewetting, the slopes along the conduits) is an idea, not a product on the shelf.

What we would add is plumbing, not a parallel fund: a standing, public line that a shareholder in Mexico City or a lender in Paris can hold and see year over year, instead of a bilateral agreement announced once — stacked on FONAG while FONAG and the guardapáramos keep doing the work. A certificate's price is a bridge that moves money to the grass, not a claim about what the grass is worth. Our stage, plainly: one live parent agent, small volumes. If you are a commercial dependent who wants a named route that stacks on FONAG, [tell us](/contact?from=guide&topic=quito).

## frequently asked questions

### who pays to protect quito's water?

Quito's households do, through the 2% of every EPMAPS bill that has gone to FONAG since Ordinance 199 (2007). EEQ, The Nature Conservancy, Cervecería Nacional, Tesalia CBC, and Quiport have also paid in, most at contract-era amounts. By dollars, FONAG's endowment is overwhelmingly public.

### what is fonag?

FONAG, the Fondo para la Protección del Agua, is Quito's water fund: a private mercantile trust created on 25 January 2000 to run for 80 years, co-founded by the city utility and The Nature Conservancy. It protects and restores the páramos that supply the city and employs guardapáramos from neighboring communities.

### how can I help quito's páramo?

If you pay a Quito water bill, you already do; ask what your 2% bought this year. If your company depends on Quito's water, become a FONAG water-footprint ally or update your constituent contribution. If you want a named route that stacks on FONAG, [talk to us](/contact?from=guide&topic=quito).

## next steps

- **Want to see the páramo Quito drinks from?** [See the live parent agent →](/northern-andean-paramo.ecoregion?from=guide)
- **Run a utility or sit on a water board?** [See how utilities fund the source →](/solutions/utilities?from=guide)
- **A company with a Quito water footprint that wants to stack on FONAG?** [Talk to someone who can help →](/contact?from=guide&topic=quito)

## sources

[CEPAL, Fondo para la Protección del Agua de Quito (case study)](https://archivo.cepal.org/cajaherramientas/Casos/Caso_Fondo%20para%20la%20Protecci%C3%B3n%20del%20Agua%20de%20Quito.pdf): trust created 25 January 2000 for 80 years; EMAAP-Q $20,000 and TNC $1,000; USAID design support

[FONAG systematization (Spanish)](https://www.fonag.org.ec/web/imagenes/paginas/fondoeditorial/28.pdf) and [English edition](https://www.fonag.org.ec/web/wp-content/uploads/2024/06/Sistematizacion-FONAG-Ingles-Web.pdf): Ordinance 199 (2007) step-up to 2% of billing; 30/70 spend-and-capitalize rule; $18.7M endowment (December 2018); about 20,000 ha administered (2018); constituents and contracted amounts; Pugllohuma rewetting; first Área de Protección Hídrica; Cinto $2.15 pilot

[FONAG, 2024 executive summary](https://www.fonag.org.ec/web/wp-content/uploads/2025/01/ResumenEjecutivo-FONAG24.pdf): 2024 approved budget $4,034,003.49; leveraged third-party funds

[The Nature Conservancy, páramos and water security (February 2025)](https://www.nature.org/es-us/que-hacemos/nuestra-vision/perspectivas/paramos-america-latina-nexo-seguridad-hidrica-biodiversidad/): about $30M endowment, about $2.5M/yr; 32 replications; guardapáramos and Lady Ulcuango

[Quiport, Quiport y FONAG](https://www.aeropuertoquito.aero/quiport-y-fonag-juntos-en-la-conservacion-y-proteccion-de-fuentes-de-agua/): $42,000 (2023 agreement); Paluguillo corridor; Iguiñaro community

[FONAG, water-footprint allies](https://www.fonag.org.ec/web/1590-2/): Quiport and GM OBB

[Quiport, ASUR stake](https://www.quiport.com/motiva-s-a-vende-su-participacion-en-quiport-a-asur-de-mexico/) and [Quiport, 2023 passengers](https://www.quiport.com/tag/quiport/): incoming 46.5% owner; 5.4M passengers

[Cervecería Nacional, water stewardship](https://www.cervecerianacional.ec/sostenibilidad/cuidado-del-agua): about 2.5 L of water per liter of beer (2022)

[Tesalia CBC, water](https://tesaliacbc.com/un-mundo-mejor/agua/): participation in water funds

[Wageningen University, Oyacachi and Quito's water](https://edepot.wur.nl/634157): Comuna Oyacachi title and the 2001–2049 agreement with EPMAPS

[La Hora, Andean bears at Paluguillo](https://www.lahora.com.ec/secciones/ecuador-los-osos-de-anteojos-habitan-en-la-reserva-hidrica-de-paluguillo/): bears on FONAG land in the corridor

[Primicias, EPMAPS supply](https://www.primicias.ec/branded/agua-quito-epmaps-sequia-abastecimiento-84821/) and [Expreso](https://www.expreso.ec/quito/llega-llave-agua-110044.html): páramo share of city water, 85% (EPMAPS) vs about 90% (FONAG)

[El Universo, Chalpi Grande](https://www.eluniverso.com/noticias/ecuador/quito-inauguracion-central-hidroelectrica-nota/) and [Quito Informa (February 2026)](https://www.quitoinforma.gob.ec/2026/02/06/grandes-obras-de-agua-potable-y-saneamiento-transformaran-la-calidad-de-vida-en-calderon/): AFD $39.3M (2021); Agua para Calderón cost figures

[Acción Ecológica, SOTE spill at Papallacta](https://www.accionecologica.org/derrame-sote-en-papallacta/): 2003 crude spill into Laguna de Papallacta

## the series

1. [**quito doesn't drink water. it drinks a páramo**](/guide/what-quito-depends-on?from=guide): pillar, what the city depends on
2. [**who drinks quito's water — and who else depends on it**](/guide/who-depends-on-quito?from=guide)
3. [**a páramo is not water. it is this sponge, this grass, this city**](/guide/quito-paramo?from=guide)
4. [**one pipe, fourteen days dry**](/guide/fourteen-days-dry-in-quito?from=guide)
5. [**quito already pays for its páramo. the open question is who else does**](/guide/who-already-pays-for-quito?from=guide): this post

The later cousin, a younger ratepayer fund in a very different place, is the [Santa Fe series](/guide/what-santa-fe-depends-on?from=guide). The ask behind both lives in [people don't care about nature. they care about theirs](/guide/people-dont-care-about-nature-they-care-about-theirs?from=guide).