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    Central Asia

    14% of Central Asia's population faces water access challenges - EDB

    14% of Central Asia's population faces water access challenges - EDB

    Approximately 10mn people, constituting 14% of Central Asia's population, lack sufficient access to safe drinking water, Eurasian Development Bank (EDB) reports. Between 1994 and 2020, water withdrawals for domestic and drinking purposes in Central Asia doubled, reaching almost nine cubic kilometres. Despite this increase, investments in water supply infrastructure have not kept pace. About 80% of the region's water and sanitation equipment is outdated, contributing to high physical and commercial losses in distribution networks, which can exceed 55%.

    Photo: Water access
    Source: Shutterstock

    The EDB report underscores a significant financial gap in Central Asia's water sector development plans. It projects a shortfall of over $12bn, averaging approximately $2 bn annually, from 2025 to 2030.

    Uzbekistan faces the most substantial annual deficit, estimated at $826mn, totalling nearly $5bn from 2025 to 2030. Kazakhstan is expected to encounter an annual shortfall of $700mn, amounting to $4.2bn over the same period. Tajikistan's shortfall is also significant relative to its economic size, reaching $209mn annually, or more than $1.2bn from 2025 to 2030.

    To bridge the funding gap, the EDB suggests three primary solutions:

    1. Attracting international finance:
    Central Asia can reduce the shortfall by attracting funding from international financial institutions (IFIs), multilateral development banks, and development agencies. Currently, the water and sanitation sector receives only 6% of total IFI-approved sovereign funding in the region, with $4bn invested in 147 projects between 2008 and 2023. Strengthening the sector's appeal to IFIs is crucial.

    Photo: Water access
    Source: Shutterstock

    2. Promoting private investment:
    Reforming ownership and governance structures in the water and sanitation sector can attract private investors. Creating favourable conditions for market relations and enhancing public-private partnership (PPP) institutions can facilitate effective cooperation between state and private entities. This approach is expected to improve competitiveness, and operational efficiency, and attract private operators to invest in water projects.

    3. Enhancing tariff systems:
    Increasing water tariffs, currently at extremely low levels, can enhance the financial sustainability of water and sanitation companies. This step would stimulate investments in infrastructure development and service quality improvement. Delegating tariff approval and review responsibilities to sector companies, with oversight by local or independent regulatory bodies, is recommended. International best practices emphasize the importance of maintaining state support through subsidies, soft loans, and targeted subsidies for vulnerable population groups.

    Implementing these measures can strengthen Central Asia's water supply and sanitation infrastructure, ensuring access to safe drinking water and supporting sustainable economic growth across the region.

     

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    30.06.2024, 13:30   Comments (0)   1122
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