Legal and institutional analysis
The water fund’s transparency, independence and long-term permanence must be justified in a study that analyses the different legal and institutional alternatives for its structure and operation. The following are some of the most important topics to be analysed in legal and institutional studies: - Current Legislation - Current Management Plans - Legal Nature of Potential Water Fund Partners - Resource Administration
Technical capacity. Availability, reliability and consistency of data.
These studies may be simple (i.e. rapid assessments) or they may be more in-depth studies that require field data collection or the development of hydrologic models. In many cases it may be possible to start with a simple analysis, but good data on the key hydrologic services identified for the fund are essential. These technical aspects should be approached as an ongoing process that starts with design and continually improves during the fund’s operation. Obtaining more and better data at the beginning will help define more precise conservation goals for the environmental services provided. For the hydrologic models, keep in mind these models reflect reality, but they are not the reality under any circumstances. - Clearly define objectives in order to adequately select the type of model that will be used. - Be very careful in scale and validating hydrologic models.