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Water-Energy-Food-Ecosystems (WEFE) Nexus Lecture: Water Sector financing in Central Asia: Opportunities and Challenges

Water is key for the socio-economic development of all the countries sharing the Aral Sea Basin (ASB). In fact, it is the availability of water that determines the region’s economic performance, social coherence, and even political stability.  Currently, the ASB, including Afghanistan, is utilizing almost 95 percent of the total water resources available in the watershed. But the region is characterized by low water productivity, irrigation inefficiencies, and water losses (only 40 percent of the water withdrawn from rivers reaches irrigated plots). The environmental aftermath of water mismanagement in the region led to the creation of a 5-million-hectare desert—the Aral-Kum. The collapse of the Soviet economic system immediately resulted in the disintegration of the compensatory system and mechanisms in the region involving water and energy and pushed countries towards more self-sufficiency and independence in all economic areas, including water, energy, and agriculture.

The actual needs for water sector investments are huge given the scale of the existing and continually degrading infrastructure. Minimum needs for rehabilitating or rebuilding Central Asia’s water infrastructure are estimated at 20-25 billion USD. It is fair to say that the water sector’s sustainable and long-term financing represents a critical prerequisite for effective water governance in the region.

There are many questions about the financial aspects of water management in Central Asian countries which we will discuss during our third Lecture:

  1. What are the main challenges in water sector financing?
  2. How can regional cooperation help to increase financial sustainability in the water sector?
  3. What role can the private sector play in financing the water sector, and why is this important for the region and for the health of the private sector?
  4. What can we learn from international experience?
  5. Should we be looking more closely at linked financing for the water and energy sectors? What would that possibly look like?
  6. What role do tariffs play and are governments prepared to set tariffs that reflect the true value of delivered water?

For the third Lecture, please join Dr. Iskandar Abdullaev, Deputy Director Two, CAREC Institute, as he explores the financial aspects of water and related sectors for the regions development, and both challenges and opportunities moving forward.

Presentation:

Financing infrastructure in Central Asia: water sector, Iskandar Abdullaev


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