The European Bank for Reconstruction and Development (EBRD) is actively working to address water scarcity challenges in Central Asia by investing in sustainable water infrastructure and promoting responsible water management, said Huseyin Ozhan, the EBRD Managing Director for Central Asia, in an exclusive interview with Trend.
"Water scarcity remains one of the most pressing issues in Central Asia, a region of more than 83 million people, where climate change and unsustainable water use are exacerbating the situation. Most of Central Asia’s freshwater intake relies on glacial melts affected by global warming. The extreme heat common to Central Asia in the summer months makes water a precious resource. Every fourth inhabitant of the region does not have regular access to safe drinking water," he said.
Water scarcity is further aggravated by inefficient irrigation practices and human activity. "To make matters worse, irresponsible human activity, particularly the wasteful use of water for irrigation, has led to one of the most devastating ecological catastrophes globally. The Aral Sea, where up to 60,000 tonnes of fish were caught annually only 30 years ago, has practically ceased to exist," Ozhan noted.
According to the World Resources Institute’s 2023 Aqueduct Water Risk Atlas, an additional one billion people worldwide will face extremely high water stress by 2050, severely affecting economies and agriculture.
The bank is also focused on improving infrastructure to enhance climate resilience. "The EBRD is helping to strengthen Central Asian countries’ resilience to climate change and to reduce both energy and water consumption by rehabilitating water networks and building pump stations and clean water reservoirs, as well as water intake and treatment facilities," he stated.
In 2024, the EBRD Board approved a 100 million euro Regional Integrated Water Resources Management Framework for Kyrgyzstan and Tajikistan. This framework is expected to play a pivotal role in identifying and implementing water-related projects over the coming years. "We are looking at projects of this type across Central Asia because the need for upgrades of existing infrastructure and the construction of new water and wastewater facilities remains very high," Ozhan explained.
The EBRD's ongoing efforts to modernize water systems are already showing significant results. In Tajikistan, the bank's investments have facilitated substantial infrastructure upgrades, including the replacement of over 700,000 meters of water network pipes, the construction or rehabilitation of 44 water intakes, and the installation of 25,000 water meters. Additionally, more than 150 specialized vehicles and other pieces of equipment have been procured. "These investments have been crucial for improving access to clean water and ensuring the sustainability of water services in Tajikistan," said Ozhan.
The EBRD’s support is not limited to large-scale projects. Smaller municipalities, particularly in the mountainous Tyan Shan region and the Fergana Valley of Kyrgyzstan, have also benefitted from EBRD's sub-loans aimed at addressing critical water infrastructure issues. Ozhan noted, "Although these sub-loans may be smaller in size, they are essential for promoting sustainable water use and reducing water losses in areas where socioeconomic challenges surrounding shared water resources are most pressing".
The bank’s focus extends to improving regional irrigation systems in Kazakhstan, Uzbekistan, and Kyrgyzstan. Given the region’s dependence on irrigated agriculture and its relatively low rainfall, modernizing irrigation infrastructure is vital. Ozhan stated, "Replacing old water pumps and pipes with modern equipment will not only improve water flow control but also reduce water losses".
In Uzbekistan, the EBRD is financing engineering works in three oblasts that rely heavily on fresh water from the Syr Darya river. A sovereign loan of nearly $200 million will be used to modernize 118 outdated pumping stations in the Uzbek part of the Fergana Valley, a legacy of Soviet-era infrastructure. "This modernization project will acquire and install energy-efficient pumping units, refurbish related infrastructure, and ultimately reduce water losses," Ozhan explained.
The environmental impact of this project is significant. The replacement of old pumps with modern units is expected to reduce annual electricity consumption by 277,000 MWh and cut annual CO2 emissions by 129,000 tons. "The environmental benefits will be immediate, and the modernization will contribute to the region's sustainable development goals," Ozhan added.
"In Kazakhstan, our successful work with Vodnye Resoursy Marketing (VRM), more widely known as the Shymkent Water Company, perfectly illustrates why the EBRD is such a strong advocate of private-sector involvement in the provision of municipal services," the managing director said.
According to Ozhan, Shymkent has become a benchmark for the region due to its efficient water management. "Thanks to VRM’s efforts, Shymkent, with 1.2 million residents, became the first city in Kazakhstan to install a water meter for every consumer. User habits have changed as a result: personal daily water consumption has decreased from 456 liters 27 years ago to 150 liters now. The water savings achieved during this period will enable Shymkent to meet the needs of its population for another 20 years," he noted.
The EBRD has supported VRM since 2009, financing five projects totaling 60 million euros. "With the Bank’s financial assistance, VRM has introduced an automated network monitoring system, improved power supply at 12 pumping stations, constructed 11 electrical substations, and built a European Union standards-compliant biogas facility - the only one of its kind in Central Asia - which helps VRM meet all of its thermal energy needs. Water losses from the system have declined from 42 percent to 17 percent," Ozhan highlighted.
Beyond Kazakhstan, the EBRD is also making significant investments in water infrastructure across Uzbekistan, Tajikistan, and Kyrgyzstan. "In the region’s two largest economies, Kazakhstan and Uzbekistan, the EBRD has financed water and wastewater projects amounting to 255.8 million euros and 407 million euros, respectively. These include a sovereign loan of 96.4 million euros for the construction of a new wastewater treatment plant in the city of Aktobe, Kazakhstan - the EBRD’s largest municipal project in Central Asia to date," Ozhan said.
Tajikistan has also been a key focus of the Bank’s efforts. "Over the last 18 years, the EBRD has mobilized $102 million (99 million euros) in loans, donor grants, and technical cooperation funds for eight water infrastructure rehabilitation projects across the country. Following their completion, more than 1.7 million people in 21 municipalities now enjoy better access to clean and safe drinking water," Ozhan stated.
Similarly, in Kyrgyzstan, the EBRD has invested more than $196 million (190 million euros) in 31 water projects across 26 cities. "Many of these projects are being implemented under the Kyrgyz Water Sector Resilience Framework," the managing director added.
While the EBRD cannot single-handedly reverse climate change, it aims to support water security through investments in sustainable water and wastewater infrastructure. "If you look at our country strategies for all Central Asian states, you can see that investment into sustainable water and wastewater infrastructure and better access to water generally is right on top of our priorities list," the managing director emphasized.
However, implementing these projects presents challenges. "Building sustainable infrastructure, which can provide high-quality water and wastewater services to businesses and households in Central Asia, is not an easy task. The institutional capacity of state-owned utilities in countries such as Kyrgyzstan and Tajikistan is often very low. This slows project implementation, making them more expensive and frustrating for stakeholders," he explained.
To address these difficulties, the bank is leveraging donor partnerships to support project implementation. "Thanks to its cooperation with donors - the EU, Switzerland, Japan, and the Global Environment Facility, to name but a few - the EBRD can offer longer loan maturities, mobilize grants to cover project-associated costs, and spend time on policy dialogue with relevant ministries, agencies, and state-owned companies," Huseyin Ozhan concluded.
