Water Crisis in Central Asia: from Diagnostic Assessment to Decisive Action
Almaty, July 9, 2024. Central Asia is facing a serious challenge: ensuring sustainable development in the conditions of growing water shortages. The region's economy (agriculture, in particular) depends on water that is becoming less accessible. There are ways to avert a water crisis, but we must join forces and act. Today. The region needs to optimize the use of available water resources at the regional level. It is extremely important to strengthen the coordination in the field of transboundary river management. From a technical point of view, significant water saving can be achieved through the introduction of modern water conservation technologies and the modernization of irrigation canals.
This very complex set of practical solutions was discussed 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. Representatives of various international organizations (IFAS, UNIDO, UNDP, the UN World Food Programme), multilateral development banks (Asian Development Bank, Eurasian Development Bank), design institutes (FSBI VNII Raduga), and the Government of the Republic of Kazakhstan, were invited to participate: the above institutions have already been deeply involved in solving the problem of water shortage in Central Asia.
The session was moderated by Evgeny Vinokurov, EDB's Deputy Chairman of the Board and Chief Economist, who pointed out that the water resources of Central Asia are limited and require a responsible approach. At the very beginning of the session, Mr. Vinokurov turned to figures to highlight the criticality of the situation: in Central Asia, more than 80% of the available water is spent on irrigation, and each year 40% of this volume gets lost during water delivery and directly in the fields. Besides, in the face of already visible changes in the rivers' flow regime and a steady increase in water consumption, the problem of water shortage will only get worse over the next few years. The commissioning of the Qosh Tepa Canal in Afghanistan will lead to a chronic water shortage in the region starting with 2028. An alternative solution will be water conservation; it will reduce losses at the estimated rate of 43 km 3 per year.
The challenges of the Central Asian water and energy complex cannot be tackled by the countries of the region independently. Historically, the five countries of the region have been closely linked by the two largest transboundary rivers, the Amu Darya and the Syr Darya. They form the Aral Sea basin that is home to 80% of the region's population. This is where the close intersectoral relationship (i.e. nexus) between water, energy and food becomes particularly evident. Deep regional cooperation is a primary condition for the effective use of shared water and energy resources and overcoming the crisis. Askhat Orazbai, Chairman of the Executive Committee of the International Fund for Saving the Aral Sea (IFAS), stressed the central role that the IFAS plays in building the necessary regional dialogue. The Fund is the only regional organization that has all five Central Asian republics as its members, and, according to its mandate, was designed to deal with the complex water-energy nexus in the region. For more than 30 years, the Fund has been the key platform for making decisions on water resources management at the highest level. The Fund is currently in reform that is expected to be completed in the near future and allow the Fund to fully unlock its potential.
It is impossible to cope with the challenges of water scarcity without adequate funding. The necessary modernization of irrigation infrastructure is extremely capital-intensive. Not enough budgetary funds are allocated to its financing, while private capital does not have any economic interest in possible participation in the sector. Considering the above, the contribution of multilateral development banks (MDBs) is of particular importance. The encouraging fact is that, over the recent years, most of the MDBs present in the region have given special priority to participating in water projects. Utsav Kumar, Country Director for Kazakhstan at the Asian Development Bank (ADB), spoke about the bank's strategy in the water sector. Mr. Kumar warned that the absence of adaptation measures will result in the growth of economic losses and the decrease of the countries' ability to provide a decent standard of living to their population. The economic impact of droughts and floods in Central and Western Asia could reach 1.3% of regional GDP annually, provided no action is taken to combat climate change. ADB is an active investor in water resources management and irrigation modernization in the Aral basin.
All regional states have brought the water issue to be among the main priorities of their state policies. A separate Ministry of Water Resources and Irrigation has been established in Kazakhstan. A large-scale state-funded programme has been approved. Bolat Bekniyaz, First Vice-Minister of Water Resources and Irrigation of Kazakhstan, spoke about the approaches used, changes in regulatory acts and reforms necessary. He gave a detailed presentation of the new Concept for the Development of the Water Resources Management System of the Republic of Kazakhstan for 2024-2030. Seven approaches, including infrastructure modernization and water-saving technologies, offer prospects of significant improvement in water management. It is expected that by 2030, there will be an increase in available water resources by 2.4 km3, their volume will be maintained at 1.9 km3, the water losses in agriculture will be reduced from 50% to 25%, irrigation systems will be brought to 2.5 million hectares of land, and 16 pumping stations and 15 irrigation units will be replaced by new ones. This will help Kazakhstan carry out active renovation and reduce the impact of natural factors on the country's economy.
The deep awareness of the importance of water issues in all Central Asian states inspires optimism. According to Evgeny Vinokurov, 2023 has become a kind of "tipping point." The EDB's Chief Economist pointed out that water conservation is the key to solving the problem of water scarcity. He emphasized the importance of digital accounting and the introduction of effective irrigation technologies. Mr. Vinokurov also suggested creating a regional cluster of irrigation equipment, which will open up new economic prospects. Considering that the region spends from $150 to $300 million annually on irrigation equipment, the EDB plans to actively support this sector's development.
An important component of any industrial cluster is the availability of appropriate design and technical expertise. As for irrigation equipment production, such expertise is possessed by the Federal State Research Institution (All-Russia Scientific and Research Institute) “Raduga”. The Institute has developed samples of many sprinkler and irrigation machines ("Fregat", "Volzhanka", "Dnepr", "Kuban", "Kuban-LK", "Kolomenka", etc.). In terms of technology, this equipment is on a par with similar products produced in Western Europe and the United States, but is way more beneficial in terms of cost. Sergey Turapin, Head of the organization, expressed readiness to support the development of irrigation equipment production in Central Asia. He shared information about the Institute's expertise and experience in implementing projects for the organization of production in the CIS.
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, the United States, etc. on the organization of local assembly lines and localization of production. In this regard, the UNIDO representative stressed the importance of working together with the EDB to form such a cluster. UNIDO is deeply committed to the principles of sustainable water resources management and views them as the key to the environmental well-being and economic prosperity of Central Asia. Joint effort and innovative approach promise to transform the region by providing its inhabitants with water and maintaining a healthy ecosystem for future generations.
The speech given by Nanna Skau, Director of the Office of the World Food Programme in the Republic of Armenia, was truly special. Her rousing performance was the highlight of the entire session. She shared her own vision of the nexus, as well as extensive international experience in the development of projects in the field of water and energy supply. During her speech, Ms. Skau closely interacted with the audience and gave special focus to the need to change social behavior, thus urging everyone to consciously treat water and electricity consumption and look for ways to save these resources.
Sukhrob Khojimatov, Deputy Resident Representative at UNDP Kazakhstan, supported the initiatives and practical solutions voiced by experts, and emphasized the importance of creating comfortable conditions for people. UNDP plays a special role in the global mission of the Sustainable Development Goals achievement. Access to safe water and sanitation and the sustainable use of freshwater ecosystems are the representation of Goal 6: Clean Water and Sanitation. Achieving this goal is of great importance for human health, environmental sustainability and economic prosperity. Over the years of its activity in Kazakhstan, UNDP has gained significant experience in implementing development projects; the organization also closely cooperates with the Ministry of Water Resources and Irrigation of the Republic of Kazakhstan.
The key statement in the speech of the UNDP representative was the announcement of the signing of a trilateral cooperation agreement between the Ministry of Water Resources and Irrigation of the Republic of Kazakhstan, UNDP and the Eurasian Development Bank. The signing ceremony was held as part of the EDB Annual Meeting. The document is aimed at implementing joint projects in the field of water resources management. The trilateral cooperation also includes the implementation of initiatives worth $5.3 million that will help digitalize the water sector, develop training centers for modern irrigation technologies, introduce water conservation technologies and design the legal and institutional framework of the industry. Major investment projects in the water sector are also under consideration.
At the end of the discussion, Evgeny Vinokurov summed up the results of the session and pointed out that solving the problems of water scarcity in Central Asia requires significant financial and organizational effort. He noted that neither the public sector nor private business will be able to cope with this task on their own. MDBs can provide the necessary funding, help coordinate effort and give impetus to development through analytical research and grant-based technical assistance projects. Active involvement of all participants is absolutely necessary.
In this regard, the signing of the trilateral agreement announced by the UNDP became a landmark of the entire event. This cooperation is aimed at implementing the solutions proposed during the session. From diagnosing and informing the public about the criticality of such a structural regional challenge as water scarcity in Central Asia, the participants moved on to the practical implementation of many of the announced solutions. The call to multiple countries, international organizations, and multilateral development banks to unite their effort has achieved its goal - and this fact cannot but inspire pragmatic optimism.
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 bln. 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.
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