Arman Ahunbaev speaks at the Eighth CAREC Think Tank Development Forum on financial solutions to the challenges of drinking water and sanitation
Almaty, Kazakhstan, August 28, 2024 – Arman Ahunbaev Head of the Eurasian Development Bank’s Center for Infrastructure and Industrial Research, took part in The Eighth CAREC Think Tank Development Forum, presenting EDB’s “Financial Solutions to Close the Investment Gap in the Drinking Water and Sanitations Infrastructure in Central Asia”.
Arman spoke at the “Fixing Climate Finance” session and gave an overview of a recent EDB study on the Drinking Water Supply and Sanitation in Central Asia, which revealed that nearly 10 million people in the region currently lack access to safe drinking water. The sector faces a significant funding shortfall, with an additional $2 billion needed annually from 2025 to 2030 to meet its goals.
To address this challenge, the EDB proposes three key solutions:
- Attracting additional financial resources from international organizations and multilateral development banks through pooled funding.
- Encouraging private investment in the water and sanitation sector while maintaining a balanced role for the state.
- Enhancing the tariff system to ensure the sector's financial sustainability, potentially by raising water tariffs.
Mr Ahunbaev explained that “the implementation of investment projects in the water and sanitation sector could have a significant economic impact. These projects are vital for public health, education, and social well-being. Investments in drinking water supply and treatment infrastructure produce a considerable multiplier effect for the economy. Each dollar invested in CA projects designed to upgrade that infrastructure will, on average, generate three additional dollars”.
This presentation became part of a broader discussion, happening at the second day of the CAREC Institute Forum in Almaty, which was centered on critical issues at the intersection of climate finance, institutional growth, and financial sustainability for think tanks, especially in the context of navigating the complex political and business landscapes of the region. This event brought together a diverse array of experts, policymakers, and academics from across the CAREC region and beyond.
The Fixing Climate Finance session, which underscored the urgent need for substantial and sustained investments to support effective climate action, featured speakers emphasizing the significant gap between global commitments and actual disbursements, highlighting the severe challenges this disparity poses for developing nations, particularly within the CAREC region.
Key discussions focused on creating a conducive policy environment that incentivizes private sector engagement in climate initiatives. Presentations underscored the critical role of all stakeholders—governments, regulators, multilateral development banks (MDBs), and private finance entities—in mobilizing the necessary resources to address the climate challenge. Arman Ahunbaev from EDB, representatives from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Asian Development Bank (ADB), and Impact Hub Asia-Pacific shared valuable insights on bridging the sustainable finance gap, fostering transition finance, addressing Central Asia’s pressing water and sanitation infrastructure needs, and financing innovations for startups and green technologies in the CAREC region.
Dr. Kuat Akizhanov, Deputy Director Two of the CAREC Institute, moderated the session on CAREC Think Tank Voices, which explored the unique challenges and opportunities that think tanks face in achieving financial sustainability and fostering institutional growth. Panelists, including representatives from various CAREC think tanks, discussed strategies for navigating political and business environments while maintaining independence and effectively engaging with key stakeholders.
CTTN Progress and Future Directions
In the CTTN Progress session, Dr. Hans Holzhacker, Chief Economist at the CAREC Institute, detailed several key achievements in 2024. These include the development of five research papers under the CTTN Research Grants program, the launch of the CTTN Talk Series with insights from regional think tanks, and the reactivation of the CTTN blog as a platform for dialogue and knowledge sharing. The CAREC Institute also established 23 MoU partnerships, strengthening collaboration across the region. Additionally, ongoing networking efforts and the formation of research alliances on climate change, trade, and connectivity were highlighted, along with strategic insights for future CAREC and CAREC Institute initiatives.
Commitment to Climate Action and Institutional Collaboration
The forum concluded with closing remarks from Dr. Jingjing Huang, Deputy Director One of the CAREC Institute, who expressed gratitude for the rich discussions and insights shared over the two days. Dr. Huang reiterated the CAREC Institute’s commitment to addressing climate change and emphasized the importance of continued collaboration among think tanks, academic institutions, and other stakeholders in the region.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals $7 bn. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
The CAREC Institute is a jointly owned and governed by 11 member countries, is a key knowledge support arm of the CAREC Program, headquartered in Urumqi, the People’s Republic of China. It focuses on sustainable development through evidence-based research, capacity building, and knowledge dissemination. By facilitating regional cooperation and integration, the Institute helps drive practical solutions and policies that promote economic growth and shared prosperity across the CAREC region.
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