Payment for Environmental Services in Ecuador: The Fund for the Protection of Water

The Fund for the Protection of Water -FONAG- is a private mercantile trust in operation since January 2000; it is regulated by the Securities Market Law in Ecuador.

The trust is an economic financial mechanism, permanent and stable, which uses the yields of its equity to co-finance activities and conservation projects, as well as maintenance of hydrographic basins that provide water to fulfill human and productive needs of the Quito Metropolitan District, and its areas of influence.

Through payments for environmental services, FONAG works to obtain the provision of a sufficient quantity and quality of water through funding actions directed to protect water resources, based on long- term natural regeneration.