The Fund for the Protection of Water -FONAG- is a private mercantile trust which operates since January 2000 and is regulated by the Securities Market Law.

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.

The FUND represents a payment for environmental services provided by ecosystems. FONAG works to obtain the provision of a sufficient quantity of water of good quality, through funding actions directed to protect water resources, based on long-term natural regeneration.

Concerned about the conservation of water resources and committed to finding solutions for the problems generated by the inadequate management of the water resource, The Water and Sewage Metropolitan Enterprise of Quito EMAAP-Q and The Nature Conservancy -TNC-, on January 25, 2000, have entered into a contract for the execution of this mechanism. The Electric Power Company of Quito EEQ, on May 2001 and the Cervecería Andina S.A. on March 2003, also joined and became adherent members of this project The Fund for the Protection of Water-FONAG.

The FONAG is a heritage fund with a useful life of 80 years. Operating as a private mercantile trust fund and legally regulated by Ecuador’s stock market law, its revenues will be used to co-finance environmental activities in favour of water conservation.