Water Management - The Times Of Central Asia

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Central Asia’s Water Crisis

Over 80% of Central Asia’s available water is spent on irrigation, 40% of which is lost during delivery and directly in the fields. Over the coming years, the problem of water shortage will inevitably worsen and with the commission of the Qosh Tepa Canal in Afghanistan, will become chronic from 2028. The stark warning was issued by Evgeny Vinokurov, Eurasian Development Bank’s (EDB) Deputy Chairman of the Board and Chief Economist during the “Water, Energy and Food in Central Asia: Partnerships and Projects for Sustainable Development” session at the EDB 2024 Annual Meeting and Business Forum on 27–28 June in Almaty. The challenges of the Central Asian water and energy complex are too great to be tackled independently by the region’s countries. Historically, Central Asia’s five states have been closely linked by the region’s two largest transboundary rivers, the Amu Darya and the Syr Darya which flow into the Aral Sea basin, home to 80% of the population. Hence, the need for close a intersectoral relationship (nexus) concerning water, energy and food and deep regional cooperation for the effective use of shared water and energy resources to overcome the crisis. At the session, Askhat Orazbai, Chairman of the Executive Committee of the International Fund for Saving the Aral Sea, stressed the central role played by IFAS in building essential regional dialogue. The Fund is the only regional organization with membership of all five Central Asian states and according to its mandate, was designed to address the region’s complex water-energy nexus. For over 30 years, the Fund has been the key platform for decisions on water resources management at the highest level. Currently being reformed, the Fund’s full potential will soon be fully unlocked. The session emphasized the urgent need for increased funding to deal with challenges posed by water scarcity. Modernization of the existing irrigation infrastructure is extremely capital-intensive but budgetary funds are inadequate and private investors have shown no interest in the sector. The contribution of multilateral development banks is therefore critical and encouragingly, over recent years, most of the region’s MDBs have given special priority to water projects. The EDB's Chief Economist Vinokurov pointed out that conservation is key to solving the problem of water scarcity. Highlighting the importance of digital accounting and the introduction of effective irrigation technologies, Vinokurov suggested creating a regional cluster of irrigation equipment. Considering that the region spends from $150 million to $300 million annually on the above, the EDB plans to actively support this sector's development. Michael Detlefsen, a UNIDO representative, expressed confidence in the future formation of a regional cluster of irrigation equipment in Central Asia. Over the last two years, the region has seen increased activity from manufacturers from Turkey, China, Israel, and the United States on the organization of local assembly lines. In this regard, the UNIDO representative stressed the importance of working together with the EDB to form such a cluster.

Caspian Sea Water Management

Kazakhstan’s Caspian Sea Level Rises by Over a Metre

On July 1, Kazakhstan’s Ministry of Water Resources and Irrigation announced that the water level in the north-eastern part of the Caspian Sea in the Atyrau region, has risen by 119 cm since the beginning of 2024. The increase is due to the abundant inflow of floodwater, during April-May, from the Zhaiyk River and additional canals laid by the ministry. During the spring floods, some 7.4 billion cubic meters of water entered the Caspian Sea via the Zhaiyk River, whilst 350 million cubic metres of floodwater were channelled into the sea in Atyrau, via the additional canals. Vice Minister of Water Resources and Irrigation Nurlan Aldamzharov commented: “A total of 12.4 billion cubic meters of floodwater was sent to reservoirs, estuaries, and water meadows. Since the beginning of the floods, 3.3 billion cubic meters of water have been sent to Lake Balkhash. In addition, active filling of the Northern Aral Sea continues, with an inflow of more than 1.1 billion cubic meters of water since the beginning of the year.”

EDB investment International investment Water Management International Cooperation UNDP

Kazakhstan, UNDP, and Eurasian Development Bank Unite in Water Management

On 28 June, the Ministry of Water Resources and Irrigation of Kazakhstan, the United Nations Development Programme (UNDP) in Kazakhstan, and the Eurasian Development Bank (EDB) signed a letter of intent to cooperate on joint development projects in multi-purpose water resources management. As reported by the EDB Media Centre, as part of the agreement, the EDB plans to allocate approximately US $5.3 million in technical assistance to implement several initiatives including water sector digitalization, the development of regional training centres for state-of-the-art irrigation technologies, piloting modern water-saving technologies, and developing a legal and institutional framework for the water sector. Kazakhstan is experiencing an increase in water-related disasters, as evidenced by recent severe floods and escalating water shortages caused by new infrastructure projects in neighbouring regions, and to mitigate future risks, must instigate improved irrigation and water management strategies. Nurzhan Nurzhigitov, Kazakhstan’s Minister of Water Resources and Irrigation, commented: “Our Ministry faces many important tasks, one of which is the modernization and improvement of the country’s water management system. For this purpose, a concept and its comprehensive plan outlining specific measures for the development of water infrastructure in Kazakhstan and other large-scale projects were developed and approved. We intend to actively cooperate with international organizations and financial institutions, adopt the best practices of other countries, and jointly implement large projects that will bring benefits for decades to come. Today’s agreement is another step in this direction.” Nikolay Podguzov, Chairman of the EDB Management Board, added: “We are on the verge of a water shortage in Central Asia – this is a complex regional challenge, but we are tackling it. This is the call we want to convey to all interested parties. We must act very quickly and together. We have only five years to get the region ready and avoid severe water shortages. To timely inform all interested parties, we have done significant work and will keep working to expand the network of partnerships.” “Globally, the water sector suffers from insufficient funding and investment,” highlighted Sukhrob Khojimatov, UNDP Resident Representative a.i. in Kazakhstan. “Today, less than 10% of global investment goes into water infrastructure. In this context, we are encouraged by this partnership, which we believe will help address complex issues in water management, strengthen climate resilience, and develop regional cooperation in Central Asia under the water agenda.”

Investment EDB Access to Clean Water Water Management

Central Asia Needs $12 Billion to Secure Drinking Water

According to the new research paper “Drinking Water Supply and Sanitation in Central Asia” released by the Eurasian Development Bank (EDB), almost 10 million people, or 14% of the population, have poor access to safe drinking water in Central Asia. Water withdrawals for drinking and domestic use increased twofold to reach 8.6 km3 between 1994 and 2020. Investment in its supply infrastructure, however, failed to match growth in consumption. It is estimated that as much as 80% of the region’s water and sanitation equipment is no longer fit for purpose. In addition, physical and commercial water losses in distribution networks can be as high as 55%. The EDB research paper highlights a clear lack of financial support for plans adopted by Central Asia to develop the sector, and forecasts a deficit of over $12 billion, or around $2 billion per year, between 2025-30. The largest shortfall is expected in Uzbekistan, estimated at $826 million per year, or almost $5 billion between 2025–30. A large shortfall is also projected for Kazakhstan at $700 million per year, or $4.2 billion from 2025–30. In Tajikistan, the shortfall will also be significant, given the size of the country’s economy, reaching $209 million per year, or more than $1.2 billion from 2025–30. To address the issue, the EDB paper outlines three solutions that could help Central Asian countries raise the required investment capital. First, the funding gap can be reduced by attracting finance from international financial institutions (IFIs), multilateral development banks, and development agencies. The water and sanitation sector in Central Asia currently accounts for only 6% of total IFI-approved sovereign funding provided to the region CA, with 147 projects valued at $4 billion (out of a total of $67.5 billion) completed from 2008–2023. Concerted efforts are required to improve the appeal of investment in the sector to attract more active involvement by IFIs. With the emergence of a new, favourable institutional environment and the arrival of private players, the potential of the corporate investment becomes significant. Secondly, to attract the much-needed finance from private investors and major players, the CA water and sanitation sector must not only modify the ownership and governance structure, but also create conditions conducive to the effective development of market relations. Regarding the above, Evgeny Vinokurov, EDB Chief Economist, stated, “The strengthening of public-private partnership institutions can be of great help. With PPPs active in the water sector, state and private structures will be able to cooperate in a more productive fashion. Expansion of the water sector services market will boost competitiveness and improve the operating efficiency of individual companies. The presence of strong PPP institutions is likely to encourage private operators to join water sector projects. The advent of private players will help the CA countries to attract investments and gain access to innovations, technologies, and experience required to modernise the sector.” Thirdly, improving the tariff system is becoming increasingly compelling. Water tariffs in the region are extremely low and could therefore be raised to improve the financial sustainability...

IsDB investment business and economy Water Management Transport

Islamic Development Bank Pledges up to $2 Billion for Infrastructure Projects in Kazakhstan

On June 27, Deputy Prime Minister-Minister of National Economy of Kazakhstan Nurlan Baybazarov signed a Framework Program Agreement between the Government of Kazakhstan and the Islamic Development Bank (IsDB). As reported by the Kazakh Ministry of National Economy, the agreement consolidated previously reached agreements on attracting long-term investments to implement infrastructure projects concerning Kazakhstan’s water management and transport sectors this year. The Islamic Development Bank will allocate up to $2 billion towards the above. The Kazakh Ministry of Water Resources and Irrigation has earmarked 16 projects for funding in 2024 including the construction and reconstruction of reservoirs, dams, irrigation canals, and associated infrastructures. The Ministry of Transport proposed four projects related to the reconstruction and construction of 500km of major highways.

Irrigation Water Management

Water in Kazakhstan’s North Aral Sea Rises by Over a Billion Cubic Meters

On June 24, the Kazakh Ministry of Water Resources and Irrigation announced that since the beginning of the year, 1.1 billion cubic meters of water have flowed into the North Aral Sea in Kazakhstan, raising the volume to 21.4 billion cubic meters. The North Aral Sea is the portion of the former Aral Sea fed by the Syr Darya River. It split from the South Aral Sea in 1987–‘88 when water levels dropped as a result of water being diverted from the river for agricultural use. At the recent 86th meeting of the Interstate Coordination Water Commission, which includes Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, it was agreed that during this year’s irrigation season, 997 million cubic meters of water would be fed into the North Aral Sea at a rate of at least 30 cubic meters per second. Now, 50 cubic meters of water per second enters the sea, compared to just six cubic meters per second last year. In the 1990s, a dam was constructed to prevent the inflow of water from the North to the South Aral. Rebuilt in 2005, the Kok-Aral Dam enabled water levels to rise in the North Aral Sea. “From the moment the dam was put into operation until today, 46.6 billion cubic meters of water have flowed from the Syr Darya River into the North Aral Sea,” said Moldir Abdualieva, official representative of the Kazakh Ministry of Water Resources and Irrigation. “And over the past 7 years, 13.3 billion cubic meters of water have entered the sea. In recent years, the volume of water in the North Aral had been declining, but since the beginning of 2024 it has begun to grow again and today has reached 21.4 billion cubic meters.” According to the ministry, 75% of the flow of the Syr Darya River comes from Kyrgyzstan, 20% from Uzbekistan, and 5% from Kazakhstan.