CENTRAL ASIA ENERGY-WATER DEVELOPMENT PROGRAM CAEWDP ANNUAL REPORT 2015 © 2016 The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: +1 (202) 473-1000 Internet: www.worldbank.org THE 2015 CAEWDP TEAM Daryl Fields, CAEWDP Program Manager; Energy-Water Linkages Pillar Lead Sunil Kumar Khosla, Energy Development Pillar Lead IJsbrand De Jong, Water Productivity Pillar Lead; CAEWDP Program Manager (September 2015 onwards) Abena Akuffo-Akoto, Partnership Specialist REPORT STRUCTURE This report presents progress for the Central Asia Water and Energy Development Program (CAEWDP) for 2015. The reporting period for this Annual Report is the calendar year from January to December 2015. The intended audience for this report includes CAEWDP donors, regional stakeholders, the World Bank and any other parties interested in energy and water security in Central Asia. This report contains six chapters and two annexes. The first chapter highlights the regional energy and water challenges in Central Asia, drawing attention to the threats posed by climate change and the importance of understanding resource interdependencies for regional cooperation. The second chapter introduces the CAEWDP approach to those regional challenges before chapter three reports 2015 updates on the CAEWDP portfolio and an activities summary for each of the three program pillars (Energy Development, Energy-Water Linkages and Water Productivity) and Chapter four reports progress against the program results framework. Chapter five reports on trust fund management and program finances, before Chapter six looks forward to CAEWDP’s future role (CAEWDP 3.0). The report contains two annexes: the first provides a summary of all activities in the CAEWDP portfolio and the second presents the program results framework and progress (in the form of a results chain) as at the end of the 2015 calendar year. ACKNOWLEDGMENTS CAEWDP is a regional knowledge and technical assistance partnership administered by the World Bank and funded by the United States of America, Switzerland, the European Commission, and the United Kingdom. Production of this Annual Report was coordinated by Abena Akuffo-Akoto and prepared by Bradley Hiller (Consultant), Mary Shen (Consultant) and Alexey Nickolaevich Morozov (Consultant). Christina Leb (Program Manager, since October 2016) helped finalize the report and editorial review was provided by Meriem Grey (Communications Officer) and the Europe and Central Asia External Communications team. DISCLAIMER This work is a product of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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FRONT COVER: Nurek Hydro Power Plant, Asian Development Bank CENTRAL ASIA ENERGY-WATER DEVELOPMENT PROGRAM CAEWDP ANNUAL REPORT 2015 CAEWDP | Annual Report 2015 1 CONTENTS ACRONYMS AND ABBREVIATIONS......................................................................................................................... 2 EXECUTIVE SUMMARY.......................................................................................................................................... 5 THE CHALLENGE................................................................................................................................................ 11 2015 PORTFOLIO & PROGRAM ACTIVITY SUMMARY............................................................................................. 17 PORTFOLIO SUMMARY................................................................................................................................ 18 ENERGY DEVELOPMENT.............................................................................................................................. 18 ENERGY-WATER LINKAGES.......................................................................................................................... 19 WATER PRODUCTIVITY PILLAR...................................................................................................................... 21 PROGRESS ON THE RESULTS FRAMEWORK.................................................................................................. 22 TRUST FUND MANAGEMENT AND FINANCIAL OVERVIEW....................................................................................... 23 PROGRAM ADMINISTRATION........................................................................................................................ 24 DONOR ENGAGEMENT................................................................................................................................ 24 COMMUNICATIONS & OUTREACH................................................................................................................. 24 FINANCIAL OVERVIEW.................................................................................................................................. 26 LOOKING FORWARD: CAEWDP 3.0...................................................................................................................... 27 ANNEX I – PROGRAM ACTIVITY DESCRIPTIONS..................................................................................................... 29 ENERGY DEVELOPMENT PILLAR................................................................................................................... 30 ANALYTICAL DEVELOPMENT................................................................................................................. 30 INSTITUTIONAL STRENGTHENING......................................................................................................... 31 INVESTMENT PREPARATION................................................................................................................. 32 ENERGY-WATER LINKAGES PILLAR............................................................................................................... 35 ANALYTICAL DEVELOPMENT................................................................................................................. 35 INSTITUTIONAL STRENGTHENING......................................................................................................... 40 INVESTMENT PREPARATION................................................................................................................. 44 WATER PRODUCTIVITY PILLAR...................................................................................................................... 46 ANALYTICAL DEVELOPMENT................................................................................................................. 46 INVESTMENT PREPARATION................................................................................................................. 49 ANNEX II – RESULTS FRAMEWORK & 2015 RESULTS CHAIN.................................................................................. 51 RESULTS CHAIN 2015................................................................................................................................ 54 2 CAEWDP | Annual Report 2015 ACRONYMS AND ABBREVIATIONS AralDIF Aral Sea Basin Dynamic Information Framework NOAA National Oceanic and Atmospheric Administration ADB Asia Development Bank ASBmm Aral Sea Basin Management Model ASBP-3 Third Aral Sea Basin Plan BEAM Basin Economic Allocation Model BT Barki Tajik CA Central Asia CAEWDP Central Asia Energy-Water Development Program CAMP4CA Climate Adaptation & Mitigation Program for Central Asia CAREC Central Asia Regional Economic Cooperation CASA-1000 Central Asia South Asia Electricity Transmission and Trade Project CA-WaRM Central Asia Water Resources Management CDKN Climate and Development Knowledge Network CER Center for Economic Research CoP Community of Practice CPF Country Partnership Framework CSOs Civil Society Organizations C4D Collaboration for Development DCC Energy Donor Coordination Committee DFID UK Department for International Development DG DEVCO Directorate-General for International Cooperation & Development (European Commission) EAP Energy Action Plan EC European Commission ECA Europe and Central Asia EC-IFAS Executive Committee of the International Fund for Saving the Aral Sea ESA European Space Agency ESCC Energy Sector Coordinating Committee ESW Economic Sector Work EU European Union EWP Energy Work Plan GDP Gross Domestic Product GEF Global Environment Facility GIZ German Society for International Cooperation GoK Government of Kazakhstan GoT Government of Tajikistan GP Global Practice GPSURR Social, Urban, Rural and Resilience Global Practice HPP Hydropower Plant ICSD Commission on Sustainable Development ICT Information and Communication Technology CAEWDP | Annual Report 2015 3 ICWC Interstate Commission on Water Coordination IDA International Development Association IsDB Islamic Development Bank ITS Information Technology Services IWRM Integrated Water Resources Management JICA Japan International Cooperation Agency JWG Joint Working Group M&E Monitoring and Evaluation MDTF Multi-Donor Trust Fund MOOC Massive Online Open Course MTPP Medium-Term Priority Projects NASA National Aeronautics and Space Administration NOAA National Oceanic and Atmospheric Administration PIU Project Implementation Unit PPA Power Purchase Agreement QER Quality Enhancement Review SDC Swiss Agency for Development and Cooperation SDG Sustainable Development Goals SECO State Secretariat for Economic Affairs (Switzerland) SURR Social, Urban, Rural and Resilience TA Technical Assistance TF Trust Fund ToR Terms of Reference TTL Task Team Leader TWG Central Asia Technical Working Group on Climate Change UNDP United Nations Development Program UNECE United Nations Economic Commission for Europe UNFCCC United Nations Framework Convention on Climate Change UNRCCA United Nations Regional Centre for Preventive Diplomacy for Central Asia USAID United States Agency for International Development USGS United States Geological Survey WB World Bank WPO Web Program Office WSS Water Supply and Sanitation WUA Water User Association 4 CAEWDP | Annual Report 2015 EXECUTIVE SUMMARY Chapter 1 6 CAEWDP | Annual Report 2015 Central Asia (CA) was impacted adversely by significant and opportunities. Exploring potential synergies and economic shocks during 2015. The region experienced a balancing trade-offs is central to ensuring regional water series of external shocks from late 2014 through 2015, and energy security. including a sharp drop in commodity prices (particularly for oil and metals), a significant slowdown in major In response, the Central Asia Energy-Water Development trading partners, (especially Russia), and a loss in Program (CAEWDP) has played – and continues to play competitiveness due to an increase in the value of the – an important role in facilitating national and regional U.S. dollar, against which many countries manage their energy-water nexus solutions to promote continued currencies, and a decline in the value of the Russian development. The Government of Switzerland and the ruble. At the end of 2015, the region’s 2016 growth rate World Bank formally established CAEWDP as a Trust was expected to be around 3.96 percent – the second Fund in 2010. The United Kingdom Department for lowest since independence1. International Development (DFID), the United States Agency for International Development (USAID), and the This period of recent economic hardship – coupled with European Commission (EC) later joined the program as fragile poverty gains and a lack of consensus on regional contributing development partners. The Program is jointly resource management – poses significant challenges implemented by the World Bank’s Water and Energy for continuing regional development. Recent gains and Global Practices (GP) in close collaboration with the ECA progress on poverty reduction have slowed down; for regional department, and supports the CA countries example in Uzbekistan national poverty rate declined (Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan from 14.1 percent in 2013 to 13.7 percent in 2014 and Uzbekistan) to build energy and water security and an estimated 13.6 percent in 2015; in Kazakhstan through regional cooperation. Balancing donor support progress on poverty reduction largely stalled due to slow with national and regional objectives, the program’s long- growth and a weak labor market; the situation is similar term goal is to promote cooperation and integrated energy in the other Central Asian countries. Progress on poverty and water development initiatives to catalyze long-term reduction in the region remains vulnerable to external economic growth and livelihood security within CA. The shocks. In addition, the harsh climatic conditions and program activities are structured around three pillars: associated higher costs for heating, clothing and shelter Energy Development, Water Productivity, and Energy- pose severe challenges to the regional poor. A lack of Water Linkages. Each pillar produces three outcomes: consensus among CA states on transboundary water support for diagnostics and analysis, preparation of issues contribute to a situation in which recent regional investments, and the strengthening of national and political, socioeconomic and ecological achievements regional institutions. A central tenet of CAEWDP is that to will remain fragile. simultaneously achieve water and energy security, broader influences and cross-sectoral impacts must be brought to Geographical and institutional complexities compound the attention of decision-makers. these challenges. Natural resources and the range of services they provide underpin economic growth, poverty CAEWDP has demonstrated an ability to provide outputs reduction and environmental sustainability. For example, that contribute to long-term solutions to energy and water and energy are at the heart of multiple Sustainable water security and improved livelihoods. CAEWDP has Development Goals (SDGs). However, there are both successfully gained buy-in from all five CA countries. It synergies and trade-offs between water, energy use and has also helped to initiate regional cooperation through food production – for example, in CA, the irrigation of the national lens of energy and water securities. As crops for food production, particularly for downstream examples, CAEWDP has helped to include energy and countries, and hydropower energy potential, particularly water linkages components in the 2013-2015 Work Plan for upstream countries, presents both challenges of the Energy Sector Coordination Committee (ESCC)2, as 1. World Bank Europe & Central Asia Economic Update (October 2015) and IMF Regional Economic Outlook Middle East and Central Asia (October 2015). 2. The ESCC is one of four working committees of the CAREC program, an ADB-hosted partnership of ten countries (Afghanistan, Azerbaijan, China, Mongolia, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan) supported by six multilateral institutions (Asian Development Bank (ADB), Islamic Development Bank (IsDB), Japan International Cooperation Agency (JICA), USAID, United Nations Development Program (UNDP) and the World Bank) working together to promote accelerated growth and poverty reduction through cooperation. CAEWDP | Annual Report 2015 7 well as the coalescence of the donor community around Given the current political and resource complexities of the CAEWDP-brokered Donor Coordination Council (DCC)3 the region, promoting cooperation requires continued Tajikistan Energy Sector Action Plan for 2015-2017. engagement of multiple partners over a sustained period A more detailed summary of 2015 achievements is – a role which CAEWDP is helping to facilitate. CAEWDP’s outlined below. role in facilitating continued engagement between key decision makers remains an important factor towards achieving regional energy and water security. SUMMARY OF CAEWDP ACCOMPLISHMENTS IN 2015 Highlights from CAEWDP’s 2015 program are presented below for each of the three pillars: (1) Energy CAEWDP’s portfolio of activities increased during 2015. Development; (2) Water Productivity; and (3) Energy- CAEWDP’s cumulative total of national and regional Water Linkages. engagements expanded from 32 grants in 2014 to 41 grants in 2015. The grants covered six sectors: Agriculture and Rural Development; Energy; Water Supply ENERGY DEVELOPMENT PILLAR and Sanitation (WSS); Water Resource Management; Environment; and Climate Change. During 2015, two grant activities were completed in the Energy Development pillar portfolio. Completed projects CAEWDP completed a total of ten grant activities included one analytical development activity and one during 2015. In addition to CAEWDP growing during institutional strengthening activity. 2015, it completed two grant activities in the Energy Development pillar, six grant activities in the Energy- The two completed activities were focused on heating Water Linkages pillar, and two grant activities in the and energy efficiency of the building sectors in Kyrgyz Water Productivity pillar. Republic and Tajikistan; and an energy sector dialogue in Tajikistan. The first activity provided a situational analysis CAEWDP continued to play a role in facilitating of the two national heating and building sectors, heating awareness raising and capacity building activities during improvement options based on market assessments, 2015 to promote regional water and energy security. and finally, investment and policy recommendations However, continued work is required to broker concrete for both countries. It helped prompt policy reforms in agreements. Through its portfolio of activities, CAEWDP the Kyrgyz Republic and preparation of a winter energy has continued to contribute to the promotion of regional investment lending project in Tajikistan. The second cooperation to catalyze long-term economic growth and activity supported Tajikistan’s efforts in reducing winter livelihood security and to act as a catalyst for continued energy shortages and improving performance of the economic growth and increased income. CAEWDP energy sector. Outcomes from this technical assistance strengthened the capacity of regional organizations activity contributed to improved performance of the such as ESCC and the United Nations Regional Centre energy sector via improved financial management, for Preventive Diplomacy for Central Asia (UNRCCA)4 strengthened coordination and collaboration between to convene and facilitate dialogue on trans-boundary development partners. issues, which contributes to regional energy and water security. For example, during 2015, UNRCCA organized In addition to completed grant activities, some other a meeting on the principles of international law in the notable achievements and ongoing activities contributed management of trans-boundary water resources in the to progress in this pillar. The ongoing grant activities in Aral Sea Basin to enhance water security and ESCC the Energy Development pillar are contributing to both organized two meetings on regional power trade. national and regional energy security and comprise chiefly investment preparation activities. Activities range 3. The DCC was established in 2006 and has an overall objective to strengthen aid effectiveness in Tajikistan. It facilitates information exchange and collaboration within the development community, as well as fostering dialogue on shared priorities with the Government of Tajikistan (GoT). It functions as the development partners’ coordination mechanism in support of the GoT’s National Development Strategy (2008-2015) and the Living Standards Improvement Strategy (2013-2015). 4. The goal of the UNRCCA is to assist and support the governments of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan in building their conflict prevention capacities through enhanced dialogue, confidence building measures and genuine partnership to respond to existing threats and emerging challenges in the Central Asia region. 8 CAEWDP | Annual Report 2015 from specific local winter energy and heating challenges ENERGY-WATER LINKAGES PILLAR in specific countries (Kyrgyz Republic, Kazakhstan and Tajikistan) to regional energy trade initiatives, such as During 2015, six grant activities were completed in CASA-1000. Notable achievements during 2015 for the Energy-Water Linkages pillar portfolio. Completed ongoing activities included the reaching of commercial projects included three analytical development activities, agreements for CASA-1000 and multiple ESCC meetings two institutional strengthening activities and one held on regional energy trade and strategy. investment preparation activity. These included: 1. Technical assistance to help initiate and strengthen WATER PRODUCTIVITY PILLAR evidence-based dialogue on climate action among key stakeholders. This grant made a substantial During 2015, two grant activities were completed in the regional contribution towards catalyzing policy and Water Productivity pillar portfolio. Completed projects operational dialogue on climate change. Progress included two analytical development activities. was achieved along three dimensions: knowledge deepening; informing strategy and policy; and The completed activities include a Social Impact Analysis informing development finance. As part of the of WSS services in Uzbekistan, and a diagnostic tool activity’s outreach and dissemination, a Massive and an assessment which identified key factors and Online Open Course (MOOC) was launched in April conditions that are associated with good performance of 2015, which engaged hundreds of participants local irrigation canal water management in Uzbekistan from ECA countries. Follow-up activities may include was completed. The first grant activity promoted further outreach on climate risks and consensus consumer engagement and evidence-based approaches building on climate action through regional events in developing WSS policies and plans for equitable and/or possible civil society partnerships. access to water supply in Uzbekistan. The activity pioneered the integration of consumer perspectives into 2. Assessing the baseline conditions of stream flow and decision-making and resulted in the government currently glacial extent of the headwaters of the Amu Darya preparing a new WSS strategy. It will also inform and Syr Darya rivers. Historical records and analyses World Bank WSS lending in Uzbekistan and the region of GIS hypsometry and satellite imagery were used more broadly. The second completed activity aimed to to establish information bases to evaluate findings contribute to better irrigation water management in CA by of supply-use and climate change studies in the identifying factors and innovative practices that positively river basins. The findings will further inform World affect performance of local irrigation water management Bank studies and investments related to climate institutions. This activity employed a case study research change and water resources management in CA. approach, which proved to be highly successful in identifying key factors and conditions that are associated 3. Communicating the key water resource management with good performance of local irrigation canal water imperatives in the Amu Darya and Syr Darya riparian management in Uzbekistan. Follow-up discussions with countries of CA. The activity assessed the economic, the Regional Water GP Lead are planned to explore environmental and social costs of inaction under operational application of the diagnostic tool. a business-as-usual scenario including limited regional cooperation among riparian countries, and The ongoing grant activities in the Water Productivity identified the key drivers for actions addressing water pillar are focused on improving information and management. Policy discussion papers on CA Water diagnostics on water management systems in CA. The Resources Management, as well as Country Profiles, three ongoing activities include an irrigation efficiency were prepared. improvement grant; a water information management system to improve accessibility, reliability and analytical 4. A grant supported UNRCCA in assisting CA countries capacity regarding water resources information; and a to develop a procedure and framework for the diagnostic of the status and challenges of water supply management of regional water resources that and sanitation across CA to outline policy priorities for addresses their trans-boundary challenges through improved services. international best practices. This activity included CAEWDP | Annual Report 2015 9 the convening of a five-country dialogue to refine a ALLOCATIONS AND DISBURSEMENTS draft template for a procedure which could form the basis of a treaty or convention in the future between CAEWDP funding and disbursements also increased the CA countries. during 2015. In 2015, the number of CAEWDP Multi- Donor Trust Fund (MDTF) supported grants increased. 5. CAEWDP engaged in a riparian dialogue grant Grants totaled US$8.9 million for 41 grants, up from activity which aimed to ensure transparent US$6.9 million for 32 grants in 2014. Based on investigative processes, increased knowledge based the allocations, the approved activities undertook on rigorous, independent information, and the disbursements in 2015 leading to cumulative seeking of alternative strategies to address trans- disbursements of US$6.2 million, representing 69 boundary water and energy issues. This activity percent of total allocations, up from 61 percent in 2014. included the promotion of a structured process This increase in disbursement was due in large part for consultation and information sharing on the to many of the activities that started in 2014, having assessment and related studies for the proposed entered the implementation phase. Among program Rogun hydropower project. Overall, the objectives of pillars, Energy-Water Linkages accounted for about 53 promoting transparency and ensuring the credibility percent of program grants, while Energy Development of the highly contentious Riparian Program for accounted for 29 percent. The remaining grants funded the Rogun Hydropower Assessment Studies, was Water Productivity (10 percent) and Strategic Program achieved. Management (8 percent). 6. Finally, the Climate Adaptation and Mitigation Program for Central Asia (CAMP4CA) supported LOOKING FORWARD strengthening of climate-smart information, institutions, and capacity for cross-sectorial and CAEWDP continues to evolve in response to regional cross-country planning, investment preparation and demands and emerging opportunities. CAEWDP has implementation to increase regional collaboration evolved substantially over the past years: it started with in the long-term. CAMP4CA enhanced regional a small set of diagnostic studies and developed further coordination and access to improved climate change into a program supporting technical and analytical knowledge services for key stakeholders and assistance across water management, energy, climate supported vulnerable communities in implementing change, water supply and social accountability. The climate investments, including support for the program has demonstrated an ability to catalyze change; Climate Adaptation and Mitigation Program for the such as shown by the CASA-1000 feasibility studies, Aral Sea Basin (CAMP4ASB). Road Map for Strengthening Analysis of Integrated Water Resources Management and the Climate Change The ongoing grant activities in the Energy-Water Linkages Forum. The Program Review activity carried out in pillar are contributing to regional knowledge, information 2015 concluded that CAEWDP is highly effective in and political collaborations. Most ongoing activities helping beneficiary countries address energy and are associated with analytical development. Activities water challenges through regional cooperation, and range from dialogue, information portals, legal analysis, it is essential that the program continues to the next knowledge networks, computer modeling, and facilitating phase to secure long-term solutions to energy and water meetings on topics of regional concern. Many of the insecurities. grant activities are aimed at promoting improved access to information and increasing capacities on complex regional issues related to energy and water security. Half (three) of the ongoing activities are analytical development grants. 10 CAEWDP | Annual Report 2015 CAEWDP is transitioning into a third phase (CAEWDP 3.0), which will incorporate the lessons of experience and evolving demands and opportunities. In response to the evolving regional energy and water situations and feedback from the Independent Program Review, a third phase (CAEWDP 3.0) is under preparation. The proposed new phase would differ from the current CAEWDP in four aspects: (i) CAEWDP 3.0 will formally include Afghanistan as a direct beneficiary country; (ii) the pillar structure and content will have an increased focus on energy and water security as the guiding principles of the entire program; (iii) national activities will have an important role as building blocks for regional linkages and energy and water security at the regional level; and (iv) there will be increased emphasis on capacity building for and within institutions and dialogue to catalyze investments. THE CHALLENGE Chapter 2 12 CAEWDP | Annual Report 2015 CA countries are at various stages of development. states as they move forward. During the Soviet Union CAEWDP operates across five CA countries with a total period, hydropower infrastructure was designed and population of 64.5 million. These countries comprise built to provide irrigation to downstream countries two International Development Association (IDA5)-only during summer months, while thermal energy resources recipients (Kyrgyz Republic and Tajikistan), one blend for winter heating purposes were imported through a lower middle-income country (Uzbekistan) and two upper regional power system: the Central Asia Power System middle-income countries (Kazakhstan and Turkmenistan). (CAPS). After the break-up of the Soviet Union, intra- regional connectivity reduced to 10% of the pre-1990 The region is endowed with a wealth of energy and water level, and the region turned into one of the most energy resources, however distribution among countries is highly inefficient in the world, both in terms of production and uneven. The region relies heavily on a mix of fossil fuel consumption. Energy shortages present an issue for and hydropower resources which are unevenly distributed domestic, commercial and industrial users; emerging between its member countries, with major implications for national aspirations and geopolitical dynamics have intra-regional coordination and cooperation. Tajikistan and reduced incentives for a cooperative regional approach the Kyrgyz Republic, as the upstream countries of the Amu to address energy deficits. Thus, the uneven distribution Darya and the Syr Darya river basins enjoy noteworthy of water within the region, compounded by a growing hydropower potential. Thermal resources are concentrated population, a highly fragmented institutional system, in downstream countries of Uzbekistan, Turkmenistan and and the difficulty in attaining consensus over resource Kazakhstan. management has led to significant losses in economic welfare, periods of water and energy shortages and Many of the current energy and water challenges related tensions, as well as continuous environmental relate to the region’s Soviet legacy, compounded by degradation. the different development objectives of the individual FIGURE 1 — CENTRAL ASIA ENERGY INTENSITY, IN A GLOBAL CONTEXT ENERGY USE (KG OF OIL EQUIVALENT) PER $1,000 GDP (CONSTANT 2011 PPP) 400 Central Asia 350 300 250 200 150 100 50 0 European Tajikistan World United ECA Kazakhstan Russian Kyrgyz Uzbekistan Turkmenistan Union States (developing Federation Republic only) Source: World Bank 2012 5. The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. CAEWDP | Annual Report 2015 13 ENERGY Energy intensity in CA is generally high on both a global and regional scale (Figure 1). In general, the energy sectors in CA states suffer from aging and inefficient power generation and transmission infrastructure. Nearly 80% of the power plants were built before 1980, and both major maintenance activities and investments to increase capacities have been negligible since the 1990s. Consequently, the region is now confronting the effects of decades of neglect and needs significant investments in rehabilitation and installation of new generation capacity. Further exacerbating the situation is a low level of regional energy trade. Following the breakup of the Soviet Union, the CA countries have switched from prioritizing the optimization of energy production and distribution at the regional level to an emphasis on safeguarding national interests. A stagnant trade environment, coupled with aging infrastructure, uneven distribution of water and energy, underinvestment and low tariffs resulted in 2 million households experiencing winter heat and power shortages; some $1.5 billion in cost savings lost due to a 90 percent reduction in energy trade within the region; and 1 percent in Gross Domestic Product (GDP) lost per year from weather-related disasters in Tajikistan and Kyrgyz Republic. WATER Regional water challenges relate chiefly to availability and efficiency of use. At an international conference in Dushanbe, Tajikistan in 2015, United Nations (UN) Secretary General Ban Ki-Moon stated that “Water is life. Water is health. Water is dignity. Water is a human right”, sentiments which resonate strongly in CA region. The regional water challenges are well known: water resources are limited and with growing demand and growing population, increase of efficiency of water usage on all levels is one of the key goals necessary for sustainable development of the region. The numbers are staggering: currently CA loses some of its 79 percent irrigated water en route. 14 CAEWDP | Annual Report 2015 There are strong competing regional demands for water FIGURE 2 — REGION WATER STRESS, RESULTING FROM for agriculture, energy and domestic purposes. The LOW EFFICIENCY AND INCREASING SCARCITY importance of establishing a sustainable link between energy and water is crucial. Currently, generating hydropower in upstream countries to address energy deficits in winter, compromises the water availability for irrigation during summer growing months, contributing to potential water use conflicts. The downstream countries depend on upstream countries for agricultural and domestic water needs. In summer, downstream countries suffer from water scarcity and poor quality, threatening agricultural productivity, along with water salinization and waterlogging. Alongside large existing and potential water storage capacity, the role of hydro resources extends beyond power generation to meet other needs, like drinking water and irrigation. strengthened energy and water resources management The dynamic between upstream and downstream states – will lead to increased competition over the region’s is a major determinant of water resource access and degrading water resources. managing water have both use. Increasing demand and diminishing supplies are domestic and regional implications for water quality, coupled by the difficulties the countries of the region ecological protection, and water quantity / availability. are facing in reaching a solution on water distribution Irrigation water demand is likely to increase by up to and establishing a mutually benefitting control over 25 percent by the middle of the century, while water water resources. Proper allocation of water among availability could decline by up to 30–40 percent during different uses and users requires evaluation, choices the same period. At the same time, water management and tradeoffs but also provides opportunities and has feedback implications for energy security and synergies. The solution for the efficient water usage system stability through the management of reservoirs between three downstream countries – Kazakhstan, and their potential role in ancillary services such as Uzbekistan and Turkmenistan and two upstream power frequency regulation and reserve capacity. countries – Kyrgyz Republic and Tajikistan has not been found yet; the international community has an important role to play in assisting the countries in CLIMATE CHANGE finding effective ways to address this challenge. The water-to-energy potential is enormous – Tajikistan, Climate change is expected to increase pressure on for example, produces 94 percent of its capacity regional hydrological systems. Climate change will out of hydropower, while using only 5 percent of its manifest itself through continuing changes in temporal hydropower potential. Increasing the available potential, and spatial precipitation patterns, increased variability if done in full coordination with other CA countries and extreme events, and an overall reduction in available could fundamentally transform the region, creating water (over the longer term). Rising temperatures and jobs, boosting income growth and laying a foundation of reducing precipitation in the region may hasten the strong regional partnership for decades ahead. disappearance of the Southern Aral Sea, while glaciers located in CA face accelerated melting caused by higher Aging physical infrastructure also poses a regional temperatures. An increase in extreme conditions and a challenge to water availability and accessibility. Most long-term decline in water resources (after 2050) is likely water infrastructure across the region has not been as glacial melt will diminish over time and regional water rehabilitated since the early 1990s and, despite sources become limited to precipitation (rain and snow) sporadic upgrades, hydraulic safety concerns remain alone. The CAEWDP-funded CA Technical Working Group and significant modernization is required. Water stress on Climate Change (TWG), which includes experts from is high among CA countries (Figure 2). Looking ahead, all five CA countries, identified water and agriculture as population growth, climate change, and the need for the top climate related concerns. increased agricultural production – if not combined with CAEWDP | Annual Report 2015 15 UNDERSTANDING RESOURCE Turkmenistan, and Uzbekistan) and the World Bank’s twin INTERDEPENDENCIES AND PROMOTING goals to reduce poverty and ensure shared prosperity REGIONAL COOPERATION through long-term economic growth and sustainability. Balancing donor support with national and regional The countries of CA share water and energy resource objectives, CAEWDP builds energy and water security at interdependencies and hence rely on cooperation to the national level as well as enhances cooperation and address joint challenges. There is opportunity to greatly promotion of integrated energy and water development improve upstream and downstream cooperation. initiatives at the regional level. The upstream countries have significant potential for hydropower export, which, if realized, could generate CAEWDP’s long-term goals are to eliminate winter revenues to help finance fuel resources and additional energy shortages, enhance water productivity, and generation capacity, as well as other energy efficiency increase electricity trade within and outside the region. programs, as a means of dealing with their winter Hence, the program is structured around three pillars energy crises. However, such upstream demands to reflect these goals. CAEWDP’s role in strengthening must be tempered with the summer irrigation needs regional cooperation and leveraging the energy-water of downstream countries, where agriculture generates nexus is particularly important given the geographic important export revenues and food for household and institutional complexities of CA’s energy and water consumption. By upgrading the current irrigation linkages. The three main pillars of the program are: infrastructure, energy savings could be realized and conveyance water losses could be minimized, thereby 1. Energy Development: This pillar supports policy reducing the demands of downstream countries and and investment decisions for highest value mix of easing pressure on the regional resources. energy resources at the regional level, both within CA and at broader regional level. It promotes CAEWDP aims to build energy and water security at and studies high-value energy investments that the national level, enhance cooperation and promote focus on energy security, energy efficiency, trade integrated energy and water initiatives at the regional and accountability, infrastructure planning, and level. The Government of Switzerland and the World Bank institutional development. This pillar’s activities also established CAEWDP as a trust fund in 2010. DFID, promote better coordination among the development USAID, and the EC later joined the program as contributing partners working in this region; development partners. The program supports the CA countries (Kazakhstan, the Kyrgyz Republic, Tajikistan, ­ NUMBER OF CAEWDP GRANT ACTIVITIES (2013-15) FIGURE 3 — 25 New 20 Completed Ongoing 15 10 5 0 2013 2014 2015 16 CAEWDP | Annual Report 2015 2. Energy-Water linkages: This pillar seeks to improve Each of the program pillars aims to engage in activities understanding of the interconnections between based around three key outputs. These are (i) Analytical energy and water at the national and regional levels, Development (Technical Assistance): upgrading the through exploring the future impact of climate knowledge foundation and establishing sound energy- change, facilitating regional dialogue regarding water diagnostics and analytical tools; (ii) Institutional cooperative management of water and energy, and Strengthening: shaping strategies and strengthening strengthening the information base; and national and regional institutions; and (iii) Investment Preparation: identifying priority infrastructure 3. Water Productivity: This pillar addresses investments. All three outputs are closely intertwined. infrastructure and management opportunities to Analytical development provides the technical increase the productivity and efficiency of water use foundations and “know-how”; institutional strengthening in both agriculture and energy sectors. builds the capacity of agents; and investment preparation helps identify investment options. Combined, these three outputs provide a comprehensive pathway to promote positive investment outcomes. 2015 PORTFOLIO & PROGRAM ACTIVITY SUMMARY Chapter 3 18 CAEWDP | Annual Report 2015 PORTFOLIO SUMMARY the enhancement of regional power market trades and integration. Several new and important initiatives began CAEWDP contributes to the World Bank’s portfolio implementation in 2015, including the winter energy in Water, Energy, and the ECA region through direct mitigation program for Tajikistan and an assessment contributions to advisory services and analytical of subsidies in the Uzbekistan energy sector and their activities. impact. Over the course of the calendar year 2015, CAEWDP During 2015, two grant activities were completed in the completed the greatest number of activities and Energy Development pillar portfolio. Completed projects comprised of the greatest number of ongoing activities so included one analytical development activity and one far. Figure 3 shows that during 2015 CAEWDP included institutional strengthening activity. 5 new activities, 10 completed activities and 21 ongoing activities. 2015 showed increases in completed and One of the completed activities was a heating and ongoing activities relative to the two previous calendar energy efficiency assessment of the building sectors years. in Kyrgyz Republic and Tajikistan. This analytical development activity provided a situational analysis of During 2015, the Energy-Water linkages pillar constituted the two national heating and building sectors, heating the largest pillar of the program. In 2015, equal funding improvement options based on market assessments, was provided to the Energy-Water Linkages and Energy and finally, investment and policy recommendations for Development pillars, with a lower amount allocated to both countries. The activity has helped to prompt policy the Water Productivity pillar. The Energy-Water Linkages reforms in the Kyrgyz Republic (particularly related to pillar accounted for more than half of all program tariff setting and a performance and reporting framework activities (53%). The Water Productivity pillar included for the heating sector) and preparation of a winter energy a smaller proportion of activities due to the delay in investment lending project in Tajikistan. commencement of some planned activities. Additionally, a Tajikistan energy sector dialogue In terms of program outputs, institutional strengthening activity was also completed in 2015. This institutional received the greatest program allocation during 2015. strengthening activity aimed to support Tajikistan’s Analytical Development comprised just over one third of efforts in reducing winter energy shortages and total program allocation 34%, Institutional Strengthening improving performance of the energy sector. This grant 38% and Investment Preparation 28%. produced three key outcomes, chiefly related to financial management and viability and stakeholder collaboration. A summary of the 2015 portfolio of program activities is Key lessons from this activity included: (i) the need provided below for each of the three pillars. A synopsis for regular meetings to help build trust and enhance of each activity and its contribution to broader program coordination between donors; (ii) the importance goals of achieving regional energy and water security and of policy support to governments to help improve regional cooperation is provided. More comprehensive investment effectiveness and efficiency and donor project descriptions and updates, as provided by Task coordination; and (iii) the involvement of civil society to Team Leaders (TTLs), are included in Annex I. ensure social responsibility and enhanced participation and communication between stakeholders. Overall, the outcomes from this technical assistance activity ENERGY DEVELOPMENT contributed to improved performance of the energy sector via improved financial management, strengthened CAEWDP’s Energy Development pillar aims to analyze coordination and collaboration between development and support high-value investments focused on winter partners. energy security, energy efficiency, enhancing trade and accountability, infrastructure planning, and institutional Other notable achievements during 2015 included the development. 2015 program activities – both ongoing reaching of commercial agreements for CASA-1000 and and completed – reflected those objectives. During multiple ESCC meetings held on regional energy trade 2015, analytical products for the Energy Development and strategy. During 2015, commercial agreements pillar were largely focused on energy efficiency, while for CASA-1000, including a Master Agreement, Power institutional strengthening outputs were focused on Purchase Agreements (PPAs), a Coordination Agreement, CAEWDP | Annual Report 2015 19 Government Guarantees and a Host Country Agreement ENERGY-WATER LINKAGES were reached. Additionally, two Central Asia Regional Economic Cooperation (CAREC) ESCC meetings were CAEWDP’s Energy-Water Linkages pillar seeks to held to address CA regional trade and discuss an energy improve understanding of the connections between strategy and work plans. energy and water at the national and regional levels, through exploring the future impact of climate change, The ongoing grant activities in the Energy Development facilitating regional dialogue, and strengthening the pillar are contributing to both national and regional energy information base. 2015 program activities – both security and comprise primarily investment preparation ongoing and completed – reflected those objectives. activities. Activities range from specific local winter energy Several significant activities were completed during and heating challenges in specific countries (Kyrgyz 2015, which provided capacity building for key regional Republic, Kazakhstan and Tajikistan) to regional energy institutions such as UNRCCA and Executive Committee trade initiatives, such as CASA-1000. Some of the grant of the International Fund for Saving the Aral Sea (EC- activities promote better integration of climate change IFAS) to facilitate regional dialogue on trans-boundary concerns and responsibilities. Four of the six ongoing waters. Other completed activities included two activities are investment preparation grants. analytical products focusing on climate change. Efforts 20 CAEWDP | Annual Report 2015 on knowledge sharing and climate change accelerated, environmental and social costs of inaction under a marked by three new activities starting in 2015. New business-as-usual scenario including limited regional and ongoing activities focused on improving national and cooperation among riparian countries, and identified the regional accessibility, reliability and analytical capacity to key drivers for actions addressing water management. A use water resources information, sustaining momentum series of Policy Discussion Papers on Central Asia Water in the regional dialogue, and collaboration to improve Resources Management, as well as Country Profiles, national and regional resilience to climate change. were prepared. During 2015, six grant activities were completed in CAEWDP supported the UNRCCA in assisting the CA the Energy-Water Linkages pillar portfolio. Completed countries to develop a procedure and framework for the projects included three analytical development activities, management of water in the region that addresses their two institutional strengthening activities and one trans-boundary challenges through international best investment preparation activity. practices. An intermediate outcome of this activity was the convening of a five-country dialogue to refine a draft One of the completed activities was a technical template for a procedure which could form the basis of assistance grant to help initiate and strengthen an a treaty or convention in the future between the five CA evidence-based dialogue on climate action among key countries Additionally, the support helped the UNRCCA stakeholders. This grant made a substantial contribution to make progress on a draft framework agreement for in CA towards catalyzing policy and operational dialogue sharing trans-boundary waters in the Aral Sea Basin. Two on climate change. Satisfactory progress towards phases of this activity have been completed. this objective was achieved along three dimensions: knowledge deepening; informing strategy and policy; CAEWDP was engaged in a riparian dialogue grant and informing development finance. Capacity building activity which aimed to ensure transparent investigative activities, such as regional workshops, were held. As processes, increased knowledge based on rigorous, part of the activity’s outreach and dissemination, a independent information, and the seeking of alternative Massive Online Open Course (MOOC) was launched strategies to address trans-boundary water and energy in April 2015, which engaged many participants from issues. This activity included the promotion of a structured ECA countries. Follow-up activities may include further process for consultation and information sharing on the outreach on climate risks and consensus building on assessment and related studies for the proposed Rogun climate action through regional event and/or possible hydropower project. This grant activity provided support to civil society partnerships. The grant further contributed international events and financial and technical support to the approval of a regional project addressing climate for multi-country dialogue activities. Overall, the objective change adaptation. of enhancing the independence and transparency, and ensuring the credibility of the highly contentious Riparian Additionally, an activity was completed which assessed Program for the Rogun Hydropower Assessment Studies, the baseline conditions of stream flow and glacial extent was achieved. of the headwaters of the Amu Darya and Syr Darya rivers. Historical records and analyses of GIS hypsometry and Finally, CAMP4CA aimed to strengthen climate-smart satellite imagery were used to establish information information, institution, and capacity for cross-sectorial bases to evaluate findings of supply-use and climate and cross-country planning, investment preparation and change studies in the river basins. Whilst the final report implementation to increase regional collaboration in the was submitted in late 2014, dissemination and close-out long-term. CAMP4CA enhanced regional coordination activities were undertaken during 2015. The findings are and access to improved climate change knowledge expected to inform World Bank studies and investments services for key stakeholders and supported vulnerable related to climate change and water resources communities in implementing climate investments. This management in CA. grant also included just-in-time preparation activities for CAMP4ASB, which was approved by the World Bank Board A grant activity on water management focused on in 2015. The grant supported preparation and delivery communicating the key water resource management of two face-to-face workshops with members of the TWG imperatives in the Amu Darya and Syr Darya riparian and other CA Stakeholders. The grant has played a role in countries of CA. The activity assessed the economic, strengthening collaboration among CA stakeholders. CAEWDP | Annual Report 2015 21 The ongoing grant activities in the Energy-Water Linkages Also, a diagnostic tool and an assessment which pillar are contributing to regional knowledge, information identified key factors and conditions associated with good and political collaborations. Most ongoing activities performance of local irrigation canal water management are associated with analytical development. Activities in Uzbekistan was completed. The development objective range from dialogue, information portals, knowledge of this grant activity was to contribute to better irrigation networks, computer modeling, and facilitating meetings water management in CA by identifying factors and on regional issues. Some of the grant activities are innovative practices that positively affect performance aimed at promoting improved access to information and of local irrigation water management institutions; (ii) increasing capacities on complex regional issues related preparing an associated diagnostic tool that will help to energy and water security. Half (three) of the ongoing in the design of program interventions for ongoing or activities are analytical development grants. future irrigation operations; and (iii) facilitating exchange of good practice experiences and knowledge of what works among relevant stakeholders across the region. WATER PRODUCTIVITY PILLAR Uzbekistan was identified as a pilot for this grant. This activity employed a case study research approach, which The CAEWDP Water Productivity pillar seeks to increase proved to be highly successful in achieving insights productivity and the efficiency of water use in the water into local governance and management arrangements and energy sectors. 2015 program activities – both for irrigation. The activity successfully identified key ongoing and completed – reflected those objectives. factors and conditions that are associated with good In 2015, an analytical product on WSS focusing on performance of local irrigation canal water management irrigation governance was completed. Another analytical in Uzbekistan and was well received by country product on WSS has made progress, however, the stakeholders. Follow-up discussions are planned to activity experienced some delay due to difficulties during explore operational application of the diagnostic tool. the data collection process. An investment preparation Further dissemination workshops and expansion the activity focusing on irrigation efficiency is close to work to other CA countries are planned. completion. The ongoing grant activities in the Water Productivity During 2015, two grant activities were completed in the pillar are focused on improving information and Water Productivity pillar portfolio. Completed projects diagnostics on water management systems in CA. The included two analytical development activities6. three ongoing activities include an irrigation efficiency improvement grant; a water information management A Social Impact Analysis of water supply and sanitation system to improve accessibility, reliability and analytical services in Uzbekistan was completed. The objective capacity regarding water resources information; and a of this grant activity was to promote the engagement diagnostic of the status and challenges of water supply of consumers and the use of evidence in developing and sanitation across CA to outline policy priorities for WSS policies and plans for equitable access to water improved services. supply in Uzbekistan. This was to be achieved by: (1) conducting, with relevant stakeholders, an assessment of consumer perceptions and impacts of current WSS service access and quality; and (2) strengthening the capacity of country counterparts in engaging customers and stakeholders. Overall, this Technical Assistance was a breakthrough and has resulted in the government currently preparing a new WSS strategy. Follow-up dissemination activities are planned and findings will be used to inform WSS lending in Uzbekistan and the region more broadly. 6. No institutional strengthening activities for the Water Productivity pillar were ongoing or completed in 2015. 22 CAEWDP | Annual Report 2015 GOAL Indicator Regional cooperation catalyzes long-term economic Indicator: Regional organizations and national bodies have growth and livelihood security in Central Asia and capacity to support trans-boundary dialogue on regional provides a catalyst for continued economic growth cooperation. and increased income. DEVELOPMENT OBJECTIVE Indicator Strengthened mutually beneficial regional Three investment or policy options initiated to strengthen cooperation enhances energy security and water stability and predictability of power supply, with at least two security. options targeted to Kyrgyz Republic and Tajikistan. At least two investment decisions on national level water or energy projects include clear understanding and regional dialogue of their trans-boundary implications. Program activities are coordinated and donor supported through a Multi-donor trust fund Institutional and analytical framework for improved water dialogue across Central Asia stakeholders exists. Understanding of regional water productivity is reflected in national plans, policies or investments of at least two countries.. Partially achieved Achieved Initiated No Progress Revision required PROGRESS ON THE RESULTS Results indicators were rated as being either achieved FRAMEWORK (3 out of 5) or partially achieved (2 out of 5) by the close of 2015 (Table 1). The three indicators related to CAEWDP’s Results Framework reports on the overarching (i) investment / policy options initiated to strengthen program goal and multiple program development stability and predictability of power supply; (ii) objectives. A summary of CAEWDP’s Results Framework investment decisions on national level water / energy (Table 1) comprises one indicator for the overarching projects integrating transboundary implications; and program goal and five indicators for the program’s (iii) program activities being coordinated and supported development objective. Annex II also contains a more through a multi-donor trust fund have been achieved. detailed version of the program Results Framework. The indicators related to (i) institutional and analytical frameworks for improved water dialogue; and (ii) At the end of 2015, the overarching program goal was understanding of regional water productivity being rated as being partially achieved. During 2015, the reflected in national plans, policies or investments program continued to strengthen the capacity of regional have been partially achieved. For the first partially organizations such as ESCC and UNRCCA, and national achieved objective, a draft report on a legal analysis of bodies to convene dialogues on trans-boundary issues transboundary water management frameworks is being (e.g. regional power trade through the provision of experts, produced. For the second partially achieved indicator, training of technical professionals, and production of CAEWDP has supported analytical outputs, however analytical materials). ESCC convened two meetings, countries have not yet fully integrated those learnings among representatives from the five countries, in which into national or regional policies and plans. international experiences on regional power trade were shared and attracted considerable interest from the CA Annex II contains a results chain, which links pillar countries. UNRCCA also convened two meetings among components with measurable outputs up to the end of representatives from the five countries and co-organized 2015. Whilst the Results Framework outlines the overall a workshop, all of which were dedicated to integrated program goal and development outcomes, the results management of water resources and enhanced regional chain measures the program outputs up until the end of cooperation in the Aral Sea Basin. 2015. The results chain links specific outputs as they contribute to pillar indicators. TRUST FUND MANAGEMENT AND FINANCIAL OVERVIEW Chapter 4 24 CAEWDP | Annual Report 2015 PROGRAM ADMINISTRATION DONOR ENGAGEMENT CAEWDP objectives remain relevant to the region, the Donor engagement and commitments remained high program structure has proven effective and program risks during 2015. Donors remain highly engaged in the have been adequately managed. By the end of 2015, program. Table 2 highlights donor engagement and the Program objective remains valid, and its structure commitments, in terms of finances. More than US$10 has proved well-suited to capturing the range of relevant million had been received as donor contributions by the activities while providing flexibility to integrate new close of 2015. Further information on program finances sectors such as water supply. Risks to the Program are is outlined in Section 5.4. periodically reviewed, as are the ongoing validity of the objectives, results framework, and program structure TABLE 2 — DONOR CONTRIBUTIONS & COMMITMENTS (i.e., the three pillars and their components). Total Total Total Funding contributions allocation disbursements available The end of 2015 saw some senior CAEWDP personnel received of funds (US$) (US$) changes, however, program continuity was maintained. (US$) to grants The CAEWDP team underwent a leadership transition (US$) at the end of 2015, and will be led by a new Program 10,524,413 8,968,000 6,198,439 559,571 Manager, Christina Leb, in 2016. The present team is Sourced from program internal financial records, as at 31st December led by an interim Program Manager who additionally 2015. serves as a pillar lead, and includes a Partnership Specialist, two pillar leads, and several support functions such as short-term assistance for communications and operations. In 2015, the team continued to 2015 was a notable year for donor engagement as provide support in project formulation, implementation, the program prepared for consultations on the next monitoring and evaluation (M&E), as well as facilitating phase of CAEWDP. CAEWDP did participate in, and the undertaking of various capacity-building activities for presented at, several partner and collaborator events activities in CA. during 2015.The Donor Advisory Committee meetings that were scheduled for late November were cancelled A mid-term review of CAEWDP was commissioned to due to the security situation in Brussels at the time. reflect on the progress achieved to date and to determine However, donor consultations were planned for 2016 to how the program can remain effective moving forward be focused on receiving feedback from the partners on in an ever-dynamic region. A mid-term review was the proposed design of the next phase of the program conducted in 2015 to consider progress being made and any additional inputs that would further enhance and course correction if necessary. A review team program design. was assembled composed of a Task Team leader and an external consultant to review the current program implementation, results framework, and the originating COMMUNICATIONS & OUTREACH project trust fund. The results are being gathered and the final report is expected in 2016. The methodology In 2015, CAEWDP began implementation of the has been agreed with the Donor Advisory Committee Communication and Outreach Strategy. The strategy and World Bank Steering Committee. An important was presented at the November 2014 DAC meeting to emerging message is that many interviewees agreed support program delivery and to boost impact-focused that CAEWDP tackles an important niche in the region; outreach activities. The purpose of the Communication that the regional problems are long term; and the needs Outreach and Dissemination activity is to strengthen are vast and thus CAEWDP should continue into a 3rd knowledge sharing and increase key internal and Phase. Another finding is that a clearer vision on the external stakeholders’ understanding of CAEWDP transformational change the program wants to achieve through a strategic communications framework. This will be necessary should the program desire to increase support will be provided through two components: its impact in the region. knowledge management and communications. Efforts will be made to systematize open, transparent CAEWDP | Annual Report 2015 25 communication and knowledge sharing among activities for CAEWDP . In 2015 the program held its stakeholders to continuously engage them. Use first brown bag lunch to share the results of the ‘Social of channels will be expanded including promoting Impact Analysis of Water Supply and Sanitation Services analytical reports and tools through media/knowledge in Central Asia’ study and the ‘Strengthening Irrigation platforms and targeted event based strategies. Governance study’. The program also developed a new logo and updated the website linking to the broader The Strategy recommended a dedicated communications World Bank Water Practice Group. Blogs, briefs, and a personnel and adequate funds. Further recommendations new CAEWDP nook helped better showcase the outputs and a roadmap focused on the type of channels and of the program in the region and at headquarters. While platforms through which the program should be engaging the program is proud of these incremental steps, there its stakeholders. A communications consultant was is still more to be done and 2016 is gearing up to be recruited and a dedicated grant was developed to another year of increased CAEWDP communications and support the programs activities in this area. There were outreach efforts. many successes and firsts in marketing and knowledge 26 CAEWDP | Annual Report 2015 FINANCIAL OVERVIEW The program disbursement rate increased during 2015. Total disbursements in 2015 represented 69 percent A cumulative total of US$8.97 million was allocated to of total allocations, up from 61 percent in 2014. This CAEWDP activities by the end of 2015. Among program increase in disbursements was due in large part to many pillars, Energy-Water Linkages accounts for about 53 of the activities that started in 2014, having entered the percent of program grants, while Energy Development implementation phase. accounts for 29 percent. The remaining grants fund Water Productivity (10 percent) and strategic program Cumulative program disbursements continued to increase management. Overall expenditures (disbursements plus in 2015, albeit at a slower rate than during 2014 (Figure commitment) were 82 percent of CAEWDP Grants, up 5). 2015 continued a trend of significant annual program from 79 percent last year. The proportions of allocations disbursements triggered in 2014, however program are outlined in Figure 4. disbursement during the 2015 calendar year was less than 2014 but greater than 2012 and 2013 (Figure 5). FIGURE 4 — PROPORTION OF TOTAL PROGRAM FIGURE 6 — ANNUAL PROGRAM DISBURSEMENTS ALLOCATION PER PILLAR 2015 (%) (US$ MILLIONS, 2012-15, EXCLUDING PROGRAM MANAGEMENT COSTS) Program Management 8% Energy Development 3.5 Water Productivity Pillar 29% Pillar 10% 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 Energy-Water Pillar 53% FIGURE 5 — CUMULATIVE PROGRAM DISBURSEMENTS (US$ MILLION, 2012-2015) 6 5 4 3 2 1 0 2012 2013 2014 2015 LOOKING FORWARD: CAEWDP 3.0 Chapter 5 28 CAEWDP | Annual Report 2015 CAEWDP has evolved substantially over the past years, Taking into consideration the results of the Review, the from 22 activities in 2013 and 32 activities in 2014, to CAEWDP team proposes that the third phase, CAEWDP 41 grants in 2015. The program started with a small 3.0, would build on the achievements of the second set of diagnostic studies and developed further into a phase but, in recognition of some of the lessons from program supporting technical and analytical assistance experience, would differ from the current CAEWDP in across water management, energy, climate change, the following four aspects: (i) CAEWDP 3.0 will formally water supply and water sector governance. In the short include Afghanistan as a direct beneficiary country; period of CAEWDP’s existence, it has achieved important (ii) the pillar structure will have an increased focus on results, including contributing to building an improved energy and water security as the guiding principles of knowledge base, demonstrating a good practice the entire program; (iii) national activities will have an example of a regional consultation process (for the important role as building blocks for regional linkages Rogun dam), and contributing to and facilitating regional and energy and water security at the regional level; (iv) investment projects such as CASA-1000. CAEWDP there will be increased emphasis on capacity building activities complement the Bank’s lending portfolio, for and within institutions and dialogue to catalyze such as the South Karakalpakstan Water Resources investments. These aspects will be confirmed once the Management Improvement Project in Uzbekistan that structure of CAEWDP 3.0 is formalized. includes technical assistance for joint identification of new operating rules for the Tuyamuyun reservoir by CAEWDP will continue to play an important role in Uzbekistan and Turkmenistan, and leverages partner addressing CA’s energy and water security issues synergies in the region such as a joint venture with the and to contribute to coordinated engagement among Swiss Development Cooperation to upgrade the water development partners in the region. management data system in the Kyrgyz Republic and irrigation governance in Uzbekistan. The preliminary results from the Program Review activity concluded that CAEWDP remains relevant and there is strong interest in the continuation of the program. Over 90 percent of the individuals interviewed during the review process highlighted that important progress has been achieved in a very short time frame through adaptive management in the face of a challenging context. In view of the structural design of the next phase of CAEWDP , two important points were highlighted, among others: 1) The objectives of the program and pillars should be refined to better reflect the linkages between outputs, outcomes and goal and theory of change; and that 2) Afghanistan, as co-riparian country in the Aral Sea Basin, should be included in the CAEWDP target countries. PROGRAM ACTIVITY DESCRIPTIONS Annex I 30 CAEWDP | Annual Report 2015 Activity Title Heating and Energy Efficiency ENERGY DEVELOPMENT PILLAR Assessment for the Building Sector of the Kyrgyz Republic and Tajikistan ANALYTICAL DEVELOPMENT Activity Completed Status Activity Title Kazakhstan Renewable Energy CAEWDP US$181,793 Integration in Power Market and System Grant Activity Ongoing Amount Status Task Team Ani Balabanyan CAEWDP US$200,000 Leader Grant Amount The development objective of this grant activity was to identify viable heating solutions and energy efficiency Task Team Mirlan Aldayarov Leader measures for the urban building sector of the Kyrgyz Republic and Tajikistan that would help the two countries improve their provision of heating services and address The development objective of this grant is : (i) to support winter power shortages. the Government of Kazakhstan (GoK) in developing a vision for effective legal, institutional, and regulatory Overall implementation of this grant activity was rated structure for the wholesale power market, taking into as satisfactory. Three intermediate outputs were account Kazakhstan’s specificities and the need of produced: (i) an intermediate report on a situational integrating hydro and renewable energy sources, and (ii) to analysis in the heating and building sectors, including share lessons from Kazakhstan’s considerable competitive completed and ongoing initiatives and lessons learnt, power market experience with other CA countries, aiming (ii) an intermediate report including a long list of to facilitate regional electricity trade through their potential heating options in each country based on market participation in Kazakhstan’s market and/or the market assessment, and (iii) a final report with investment and design replication in these countries. policy recommendations. All reports were completed in 2014. In 2015, key stakeholders in Tajikistan and By the end of 2015, this activity was close to completion. Kyrgyz Republic discussed the reports during an in- The grant supported the Kazakhstan Power Market country meeting, after which the Bank team finalized Study carried out by a consultancy firm. The study and published the reports. In both countries, the developed recommendations focusing on adjustments recommendations helped to inform and shape follow-up to the electricity market rules and the power system technical assistance and planned investment lending requirements to enable integration of renewable sources activities on efficient individual heating stoves and of energy. Specifically, it includes an analysis of the district heating. current state of the electricity market, power system and renewable energy systems; identifies the main The results of the heating assessment helped to inform shortcomings and challenges they face; and provides policy reforms in the Kyrgyz Republic, in particular, recommendations on a longer-term vision of the market the development of a transparent tariff setting structure and on the required changes in the current methodology and a clear performance and reporting regulatory system. The workshop to present the draft framework for the heating sector. At the request of deliverables took place in June 2015 and the final the Ministry of Energy and Industry and based on the two draft reports (reintegration into the network and results and recommendations of the assessment, the reintegration into the market) have been provided. The Bank also initiated a follow-up technical assistance report was produced in December 2015. activity with the District Heating company in Bishkek to support the development of a detailed investment and implementation plan. This investment plan CAEWDP | Annual Report 2015 31 will help development partners to have inputs for management; (ii) Participation in the Energy Donor their investment project in district heating access Coordination Committee (DCC); and (iii) Assessment of and efficiency improvement in the Kyrgyz Republic. the energy sector macroeconomic impact and contingent Moreover, the findings and recommendations of the liabilities on the state budget. heating assessment report in Kyrgyz Republic have led to the Bank team currently preparing a winter energy This grant produced three key outcomes, chiefly related investment lending project in Tajikistan. to financial management and viability and stakeholder collaboration. Specifically, the key outcomes of the grant INSTITUTIONAL STRENGTHENING implementation include: (i) Effective provision of assistance on financial management to the Barki Tajik (BT) and the Activity Title Tajikistan Energy Sector Dialogue related activity - Bank funded Energy Loss Reduction Project began to address key financial management issues that Activity Completed Status prevented the BT auditors to issue an audit opinion in the past years; (ii) The Bank’s participation and leadership CAEWDP US$170,000 in Energy DCC enhanced cooperation and collaboration Grant Amount between development partners in the energy sector. The development partners jointly developed the Tajikistan Task Team Yuriy Myroshnychenko Energy Sector Action Plan for 2015-2017 with inputs from Leader civil society, which solidified the development partners’ stance on key policy issues and will serve in policy dialogue The strategic objective of this grant is to support in the years to come; and (iii) The grant produced notes Tajikistan’s efforts in reducing winter energy shortages on BT’s financial situation, which formed a solid analytical and improving performance of the energy sector. The basis for policy discussions on BT’s financial viability, grant supported three activities which completed especially with respect to tariffs. in 2015: (i) Assistance to Barki Tajik on financial The main lessons from this activity included: 32 CAEWDP | Annual Report 2015 yy Regular meetings of the Energy DCC helped build At the end of 2015, the grant objective has largely been further trust and enhance coordination between met. The grant has promoted regional power trade through donors facilitating dialogues between CA countries and sharing yy Support to Government on policy as well as with international experience. Specifically, the activity supported respect to investments becomes more effective and sharing of international experience from Northern Europe efficient when donor supported activities are well and Balkans with respect to regional power trade and coordinated markets as well as a series of consultations with CA yy Involvement of civil society in Energy DCC meeting countries and the regional Coordination Dispatch Center. (in particular the Tajikistan Consumers Union) The grant helped engage the technical experts from helped ensure social responsibility and enhanced the countries and identify priority technical issues to be participation and communication of civil society with addressed to facilitate enhanced regional power trade. energy sector authorities and utility The consultations resulted in the establishment of a list of technical issues that hamper regional power trade. The outcomes from this TA contributed to improved Furthermore, as a follow up of the suggestion of the performance of the energy sector. All key outcomes Kazakhstan delegation at the CAREC ESCC meeting in of this grant activity are very likely to be sustained, end-March 2015, as well as to secure high level political including strengthened coordination and collaboration agreement between the CA countries to expand regional between development partners under Tajikistan Energy power trade, a study on unrealized benefits from CA DCC, and strengthened government policy to improve regional power trade for 2010-2014 was commissioned. A financial performance of BT through increases in tariffs, meeting with power sector officials from CA countries that improvements in cash collections and reductions of took place in mid-May in Almaty resulted in the finalization electricity losses. of the Terms of Reference (ToR) of the study. The advisory consulting firm, AF-Mercados, has commenced the study Activity Enhancing Regional Power Trade in in July 2015 and will complete it in February 2016. The Title Central Asia outcomes of this study will be presented and discussed at Activity Ongoing the ESCC meeting that will take place in end March/early Status April 2016. CAEWDP US$180,000 Grant The duration of the grant has been extended to increase Amount collaboration and the likelihood of positive activity outcomes. The Bank team extended this grant to August Task Team Yuriy Myroshnychenko Leader 2016 to assist in studying how to enhance Central and South Asia energy trade, with increased collaboration of key donor partners active in the region including the ADB. This grant aims to explore options for and facilitate discussions on power trade and cooperation between INVESTMENT PREPARATION CA countries with the goal of increasing efficiency of their respective power systems, enhancing reliability and Activity Title Kyrgyz Republic: Heating Efficiency security of electricity supply, reducing power shortages, Improvement and avoiding GHG emissions. The activity includes two Activity Ongoing stages: 1) Review of the available analytical materials Status on CA power trade and, by considering the recent and CAEWDP US$140,000 planned developments of the power systems of the Grant CA countries, preparation of a note/presentation on Amount possible power trade and cooperation options; and Task Team Kathrin Hofer 2) Discuss the note/presentation through bilateral Leader meetings with power sector stakeholders of the CA countries with a view to identifying a list of priority measures that are economically attractive and politically acceptable. CAEWDP | Annual Report 2015 33 This grant aims to help address the challenge of company also plans to use the proposed prioritized providing reliable and affordable heating supply to investment packages to help mobilize additional funding the Kyrgyz Republic. Reliable and affordable heating sources in a coordinated manner and to ensure the supply is critical for the well-being of the population highest impact per dollar invested. and for sustaining economic activities in the Kyrgyz Republic during the cold winter months. Yet, achieving Activity Title Tajikistan Winter Energy Program this objective remains a daunting challenge because of Activity Ongoing low operational efficiency of the heating infrastructure, Status low tariffs, lack of metering and norm-based billing CAEWDP US$600,000 practices, decreasing availability and affordability of Grant imported gas, unreliable heating supply and increasing Amount reliance on electric heating. The government recognizes Task Team Yuriy Myroshnychenko the importance of addressing the above-mentioned key Leader challenges and has initiated several steps to improve the efficiency and reliability of heating supply. Improving the efficiency and reliability of the District Heating (DH) The objective of this grant is to support pre-investment network would not only support the government’s long- studies to enhance winter energy security in Tajikistan. term strategy in the heating sector and complement Tajikistan has been facing severe winter energy the ongoing investments to modernize a combined heat shortages that badly affected rural households that and power (CHP) plant, but also support a strategic shift account for 70 percent of the country’s population, which from meeting heating demand through electricity towards is deprived of formal heating support in severe winters. providing more reliable and efficient DH – thus helping to The grant will cover two areas: i) efficient stoves and manage the perennial winter energy shortages. heating solutions, with a focus on rural areas and ii) the preparation of the Nurek Hydro Power Plant (HPP) This grant aims at developing a detailed investment rehabilitation. and implementation plan and recommending reform measures to improve the efficiency and reliability of the This grant targets both a demand-side and supply-side district heating (DH) system in Bishkek. The activity will outcome: (i) Efficient stoves and heating policy options include the following main components: Component initiated to promote efficient stoves for stable and A - Scoping of priority investments to improve the predictable winter power supply in Tajikistan (ii) Nurek efficiency and reliability of the DH system in Bishkek, HPP Rehabilitation Program that would increase the including: (1) building-level heat metering; (2) transition capacity of the Nurek HPP and enhance dam safety to consumption-based billing; (3) replacement/re- designed and ready for investments. insulation of transmission/distribution pipelines; and (4) installation of variable speed pumps/drives. Component During 2015, significant progress was achieved towards B - Policy reforms supporting the implementation of both outcomes: identified priority investments and the transition towards consumption-based billing. In addition, activities may yy Heating stoves. The team completed the qualitative also include targeted dissemination and outreach phase of the stove market assessment and has activities. planned the quantitative phase for the first half of February 2016. By end of April 2016, the team will During 2015, the Bank team finalized the technical and complete a report that summarizes the outcomes economic assessment of the district heating system in of both phases. In parallel with the stove market Bishkek and discussed the results with both the district assessment, the team will endeavor to develop heating company and the Government. The assessment a few prototypes of efficient stoves for Tajikistan, proposes a prioritized investment plan to improve the the need for which was derived from findings from efficiency and reliability of the largest district heating stove testing implemented by the Bank team in system in the country. The responsible district heating early December 2015. The testing revealed that on 34 CAEWDP | Annual Report 2015 average, fuel efficiency of popular stoves installed with stakeholders and public outreach. Component 2: in Tajik homes is around 30%, compared to 70% Covering operating costs for delegates from the Kyrgyz and more for modern efficient stoves. The team will Republic to facilitate the dialogue and development present the outcomes of the market assessment of regional trade initiatives and incremental operating and the work on development of stove prototypes expenses for the project implementing unit (PIU). to Government, development partners and other stakeholders in May or June 2016. These meetings In 2015, the grant has resulted in strengthened will also discuss a strategy for implementing a capacity of the Government of the Kyrgyz Republic and program to replace existing inefficient stoves (about Tajikistan to negotiate commercial and legal agreements 1 million of them) with more efficient and clean under CASA-1000, resulting in prepared commercial heating stoves. agreements for CASA-1000, including Master Agreement, PPAs, Coordination Agreement, Government Guarantee, yy Nurek HPP Rehabilitation. The preparatory work, and Host Country Agreement. Progress has also including finalization of terms of reference for been made with the bidding and evaluation of several additional studies, has already started and the procurement packages, including the most critical studies will be completed in 2016. A Bank team Supply & Install of High Voltage DC Converter Stations is working on finalizing the on-going studies at Tajikistan, Afghanistan and Pakistan. The grant further for rehabilitation and dam safety as well as resulted in Kyrgyz Republic and Tajikistan representatives sedimentation and additional studies. Preparations attending several meetings of the Intergovernmental on the project concept note are underway which Council (IGC) and CASA-1000 Joint Working Group (JWG). will provide the right direction to the team and the advisors to prepare the project. In parallel the The Kyrgyz Republic activity grant has been increased team is supporting the Government of Tajikistan in budget and duration. An increase from $300,000 to on the preparation of the terms of reference for $500,000 has been approved and the activity timeframe engagement of consultants that will design and extended from 12/31/2015 to 6/30/2016. supervise the work of the contractors. Activity Title Energy Vulnerability to Climate Change Activity CASA – 1000 Advisory support for Activity Ongoing Title countries (RE): Kyrgyz Republic & Status Tajikistan- Advisory Support for the CAEWDP US$100,000 Regional Trade Initiatives Project Grant Activity Ongoing Amount Status Task Team Daryl Fields CAEWDP US$800,000 Leader Grant Amount Task Team Sunil Kumar Khosla The overall objective of this grant is to help beneficiary Leader countries in CA understand climate change-induced energy sector vulnerabilities and build resilience through the development of coordinated adaptation policies. The development objective of this grant is to facilitate the The project consolidates a vulnerability assessment preparation of the CASA-1000 project and other possible of the impacts, risks, and the adaptive capacity of the regional energy trade initiatives for the Kyrgyz Republic. energy sector. The assessment will help guide decision- The proposed grant will achieve its objective through makers on options for current and future investments the implementation of the following two components: and management of power generation and transmission, Component 1: Technical Assistance to support the and better understand cross-sectorial implications. The Government and the working groups to advance the grant will lead to two outcomes (i) The Government of CASA-1000 groundwork by financing the technical, Tajikistan equipped with latest projections on climate commercial, legal, environmental and social and other change, its impacts on the energy sector of Tajikistan necessary expertise for the country advisors, and to and adaptation measures; and (ii) Regional dialogue of support other inter- and intra-regional initiatives by energy sector adaptation to climate change facilitated. financing relevant assessments, studies, consultation CAEWDP | Annual Report 2015 35 At the end of 2015, the assessment study was close to yy Climate uncertainty requires a shift in investment completion. The team presented updates of the study and operations management, to integrate a robust during the 20th CAREC Energy Sector Coordinating decision-making approach that selects investment Committee (ESCC) meeting which took place in Kuala paths to minimize risks across a full range of Lumpur, Malaysia from 7-10 September 2015. A draft climate scenarios. report was completed in December 2015. The draft report has three components: 1. Hazard-Impact Models yy Investments in ability to understand and track 2. Impact metrics for energy system and 3. Adaptation climate change, and thereby support robust Analyses. decision-making such as new information technologies and analytical capacities are needed. The preliminary findings of the assessment are: Hazards: yy Coordination on small reservoir operations as well as basin-wide water management reduce risks and yy Climate change forecasts for temperature show increase adaptation benefits, and help manage the some convergence, unlike precipitation forecasts more volatile and possibly reduced availability of water which disagree considerably. The team will present and discuss the outcomes of the yy Hydrologic impacts are highly uncertain, with little study at the next ESCC meeting and finalize the report convergence on predictions of magnitude, direction, within one month following the meeting. or timing of change, and with possible differences even within a river basin. ENERGY-WATER LINKAGES PILLAR Impacts: ANALYTICAL DEVELOPMENT yy Overall warming will reduce energy demand in winter and changes in summer demand will depend Activity Title ECA Deep Dive: Leveraging Turn down the on uptake of air conditioning and demand for Heat III ESW for Europe and Central Asia irrigation given changes in hydrology, especially in Activity Completed downstream countries. Status CAEWDP US$197,756 yy Hydropower investments may either benefit or Grant experience reduced/more variable generation, Amount reflecting the uncertainty in hydrology, furthermore, Task Team Philippe Ambrosi these impacts may change over time. Leader yy Higher temperatures are likely to marginally reduce efficiency of transmission systems, although extreme The objective of this technical assistance is to help events may increase risk of weather outages. initiate and strengthen an evidence-based dialogue on climate action among key stakeholders (e.g. policy yy The frequency of flood events that substantially makers, youth, and media), leveraging the latest damage energy infrastructure (generation, scientific analysis provided at sub-regional level (Western transmission and distribution) across the region Balkans, CA and Russia) under the ‘Turn Down the Heat is likely to increase, especially in wet climate III’ Economic Sector Work (ESW) activity. scenarios. This grant has made a substantial contribution in CA Adaptation with regional benefits: towards catalyzing policy and operational dialogue on climate change. Satisfactory progress towards this yy Energy efficiency and energy trade reduce climate objective was achieved along three dimensions: risk while offering “no regrets” economic benefits at both national and regional scales. yy Knowledge Deepened: The grant helped improve understanding of climate vulnerabilities and options to enhance climate resilience, notably through i) 36 CAEWDP | Annual Report 2015 Background review (e.g., mobilization of sectorial/ Three out of four of the planned outputs were completed country experts, both Bank and non-Bank) of as follows: CA specific analysis in the ‘Turn Down the Heat’ report, which provides a synthesis of latest peer- yy ‘Towards Climate-Smart Solutions for Central Asia’ reviewed literature on impacts of climate change on identified climate-smart adaptation measures that development in several regions including CA; and respond to the development needs and priorities ii) Preparation of the document ‘Towards Climate- of CA countries for key development sectors and Smart Solutions for CA’, which focused on proposing increase resilience to climate challenges now and no-regret measures in achieving climate resilience in the future. It was well received at the Second at the water-energy-agriculture nexus, drawing on a Central Asia Climate Knowledge Forum in Almaty in synthesis of existing work.7 May 20148 and main findings were also presented under the Central Asia Global Knowledge Series, yy Strategy and Policy Informed: Under the background a Brown Bag Lunch series under the Energy GP review of the Turn Down the Heat report, early draft of the World Bank in June 2014. This document of the report and discussions with experts have also provides a list of reference documents on provided scientific and technical input to the Climate climate impacts and adaptation measures in major Change Issues Note for Tajikistan, a Knowledge development sectors for CA countries9. Product to inform the new Country Partnership Framework (CPF) for Tajikistan (FY15-18). The Note yy Capacity Building Workshop for Regional Scientists contributed to i) developing a narrative linking climate took place during 2014 at the Potsdam Institute change vulnerabilities in Tajikistan and action areas for Climate Impact Research. The workshop shared under the three pillars of the CPF; ii) identification of methodological approaches, data sources, and operations that are helping address climate change; preliminary results from the Turn Down the Heat iii) proposing indicators to monitor resilience through report with regional scientists and World Bank staff the CPF cycle. to obtain their feedback and comments, identify additional information that could feed into this yy Development Financing Informed: Early findings from analysis, and raise interest for further integrated the Turn Down the Heat report as well as a final analyses by regional scientific communities. draft of Towards Climate-Smart Solutions for Central Asia have been discussed with representatives from yy Turn Down the Heat: This grant helped mobilize client countries at the Second Central Asia Climate sectorial/country experts, both Bank and non-Bank, Knowledge Forum in May 2014 in Almaty and have for quality control. The report emphasizes that water informed, along with other scientific and technical resource systems in CA are sensitive to climate input, the design of CAMP4ASB, to expand regional variability and change, and climate impacts on water coordination and access to improved climate change provisioning will reverberate in the agriculture and knowledge services for key stakeholders (e.g., policy energy sectors10. Outreach and dissemination in makers, researchers, and civil society) in participating CA included a Technical Working Group on Climate CA countries and support climate-smart investments Change (~15 members) throughout CAMP4ASB and capacity building for climate vulnerable preparation; summary brochures for each of the communities in these countries. CAMP4ASB covers three ECA sub-regions; and the MOOC was launched the five CA countries through IDA, IBRD, and RAS in April 2015, with approximately 900 participants instruments. from ECA countries. 7. see http://www.worldbank.org/en/events/2014/04/08/second-central-asia-climate-knowledge-forum-moving-towards-regional-climate-resilience#3 8. Ibid. 9. See: http://wbdocs.worldbank.org/wbdocs/drl/objectId/090224b082ed0d96 10. The report, launched on November 24, 2014, in the run up to the UNFCCC Climate Change Conference in Lima (Peru), can be accessed, along with other material (press release, infographics, multimedia, etc.) at www.worldbank.org/en/topic/climatechange/publication/turn-down-the-heat and was also posted on the Central Asia World Bank website. CAEWDP | Annual Report 2015 37 Main lessons learned from this grant activity include: This grant activity has been completed, however follow- up activities are outlined. Follow up activities include: yy A major process-oriented lesson relates to a) Finalization of the preparation and implementation engagement with counterpart (primarily, experts with support for the CAMP4ASB Series of Projects government agencies overseeing climate sensitive CAMP4ASB SOP , b) Pursue other opportunities for sectors and scientists), whose keen interest and outreach on climate risks and consensus building on support was key for the success of the ECA Deep climate action, through participation at regional events Dive TA. This was possible thanks to high-level or possible partnerships with Civil Society Organizations support internally, not only in terms of personal (e.g., in the context of CAMP4ASB). commitment (e.g., Bank Management participation in the client engagement/dissemination events Activity Title Assessment of the Role of Glaciers in for instance or media outreach) but also of Stream Flow from the Pamir and Tien provision of adequate resources, including for Shan mountains follow-up tasks. These resources have been key Activity Completed to support interaction with counterparts all along Status the production of the Report and they appreciated CAEWDP US$74,616 the several opportunities to be associated to the Grant Report’s preparation and provide feedback on its Amount scope and messaging. Task Team Winston Yu Leader yy In terms of external arrangements, a key instrument in CA was the establishment of a Technical Working Group, with cross-sectoral participation The overall development objective of this grant activity of government-nominated experts to work on was to develop an assessment of baseline conditions of climate change, and maintaining close and frequent stream flow and glacier extent for the headwater basins interaction with this group. The Bank team continues of the Amu and Syr Darya rivers from historical records to work with this group for the preparation of the and analyses of GIS hypsometry and satellite imagery. regional climate change program in CA. These data were expected to provide the fundamental organized information bases needed to evaluate findings 38 CAEWDP | Annual Report 2015 of supply-use and climate change studies of the Amu Activity Title Central Asia Water Management and Syr Darya river basins. Activity Completed Status This activity contained four interdependent components, CAEWDP US$523,567 focused on generating knowledge and enhancing Grant dialogue in the following areas: (i) energy supply- Amount demand balance; (ii) energy-water linkages; (iii) regional Task Team Rita E. Cestti transmission and market regulation; and (iv) water Leader productivity. This grant activity was completed in 2015. The final The objective of the grant was to communicate the key report for this activity was submitted in late 2014 and water resource management imperatives in the Amu dissemination activities continued in 2015. The ECA Darya and Syr Darya riparian countries of CA. To do water manager and colleagues accept the findings as this, the activity assessed the economic, environmental highly relevant to water resources and climate change and social costs of inaction under a business-as-usual studies in CA. The findings will further inform World Bank scenario including limited regional cooperation among studies and investments in the region. Dissemination riparian countries, and identified the key drivers for activities focused on sharing the study methodology and actions addressing water management. findings with World Bank staff. Policy Discussion Papers on Central Asia Water The activity produced several key learnings, including: Resources Management, as well as Country Profiles, were prepared. In a first phase, the Basin Economic yy The bulk of the data traditionally available for the Allocation Model (BEAM) was built upon to analyze the Pamir and Tien Shan mountains or regions are economic incentives for improving water management commonly gross aggregate means of climate and in the five CA countries located in the Aral Sea basin. hydrology obtained from lowland stations. The Attempts to quantify the physical and economic impacts final report synthesized the findings and provided of various policy and investment decisions in the estimates for how much water glaciers and season energy, agriculture, water supply and sanitation, and snow from non-glaciated areas contribute to runoff power sectors under cooperative or non-cooperative in the Syr and Darya River basins and the extent water management frameworks however did not yield this contribution might be affected by climate reliable results. The first phase report which assessed change. the current practices and future business-as-usual and action scenarios of key water sectors based on BEAM yy The activity concluded with a discussion of the was reviewed in two Quality Enhancement Review (QER) implications of the study findings on overall Meetings, one held in late 2014 the other in January water management in the region, providing the 2015. After careful review of the analytical tool, the fundamental organized information bases needed decision was made to use the technical insight of the to evaluate various climate change scenarios of the report and the review to produce a series of Policy Amu and Syr Darya River basins. This would help Discussion Papers on Central Asia Water Resources to prioritize areas of most concern from the water Management as well as Country Profiles. resource management and planning perspectives and potential solutions. Activity Title Central Asia Water and Energy Portal Activity Ongoing yy Also, this study has been an important contribution Status to the overall discussion of climate change impacts CAEWDP US$300,000 on water and energy in the ECA region. Grant Amount Task Team Nagaraja Rao Harshadeep Leader CAEWDP | Annual Report 2015 39 Portals can offer access to databases of information hydrometeorology agencies. Students from CA and related to water and energy, however there is currently Afghanistan (IT and Water specialists), main water no such resource available at the regional scale. A institutions (Hydromet, Regional Center of hydrology fundamental impediment to regional integration related and the EC-IFAS branch in Kazakhstan) and IT experts to energy and water in the CA region is that there have been working on three mobile apps responding is currently no easily accessible knowledge base to to key information needs of the institutions. This has visualize and analyze the region in an integrated manner. contributed to the sustainability of the work, since At regional level, several attempts have been made on it invited students from different countries to study portals / databases related to the region, but the quality institutions from other countries for the opportunity to and access to public-domain information is still very interact with professionals in the field. limited. Activity Title Capacity Strengthening for IWRM The development objective of this grant is to improve Modeling public-domain online access to water and energy related Activity Ongoing spatial information. Key intermediate outcomes targeted Status include: CAEWDP US$385,000 Grant yy An online portal for accessing spatial information Amount related to water and energy aspects in CA. Task Team Daryl Fields Leader yy A platform to integrate global and local multi-sector data The development objective of this grant activity is to yy An innovative interactive mobile App for access to strengthen knowledge and modeling skills leading to key features of this portal a more effective base on which to identify modeling architecture options and priorities for integrated water yy Improved awareness on CA Water and Energy spatial resources modeling in CA. This activity is demand-driven context for development and cooperation based on messages conveyed during the national dialogues and the 6-country July 2012 IWRM Forum yy Knowledge products to promote access to and use demonstrating that there is a demand from the region to of such public domain data in CA build/adapt their own model instead of having another model superimposed on them from the outside. During 2015, the grant activity made substantial progress in developing public domain online portal and The activity aims to achieve outcomes of strengthened improving portal use and scaling-up. The new mobile capacity and increased knowledge, awareness and app, “Spatial Agent” is a simple but extremely powerful confidence around IWRM modelling. The grant contributes data visualization app, which can visualize a range of to creating a more level playing field, for a more public-domain spatial multi-sectorial datasets through transparent dialogue across the six countries, mitigating interactive maps and charts. This app was demonstrated one of the recognized risks to trans-boundary water at a regional workshop to promote innovation and cooperation - capacity and knowledge gaps. This activity technology in regional water resource management. helps knowledge and skill expansion, training and studies The app and the demonstration have prompted the which meet gaps in capacity and knowledge, and support identification and use of public domain datasets in CA developing new skills. and inspired even more public data access through such kind of apps. The activity contains three components, of which two were progressed during 2015. This activity comprises: This grant has also promoted open data for another Component 1: National Consultations; Component 2: CAEWDP-funded activity, the Central Asia Water Capacity strengthening through technical knowledge Resources Management (CA-WARM) project. The exchange; and Component 3: 2nd Central Asia IWRM CA-WARM project has a strong focus on regional and Knowledge Forum (as a follow up to the 2012 IWRM national activities relating to information sharing, use, Forum). In 2015, progress has been made on the first and modernization of associated water resources and two components. A National Workshop was held with 40 CAEWDP | Annual Report 2015 Turkmen specialists, accompanied by consultations This activity achieved significant progress during 2015 with government officials on a 1-2 year water program and is nearing completion. A draft report for this activity at national and regional scales. A diverse set of has been produced. The report provides detailed professionals from all six Aral Sea Basin countries analysis of the various legal instruments as well as (including Afghanistan), as well as representatives of the analysis of the “boundary conditions” and their the regional water organization, participated in a five- basis in the legal instruments analyzed previously. The day training course. The training tested a curriculum report has enhanced understanding of the regulatory developed by a region-wide model advisory group, which frameworks for trans-boundary water management of CA is to be included in a long-term regional project. The with emphasis on their nature, legal standing, level of participants valued the use of three models of the Aral compliance and regional perceptions. Sea Basin for hands-on learning, and commented on the opportunity to become aware of these tools, as well as INSTITUTIONAL STRENGTHENING the experiences of their regional colleagues. Participants were interested in continuing the interactions as a Activity Title United Nations Regional Centre for community of practice. As a side event, a meeting was Preventive Diplomacy for Central Asia held with the women participants to discuss possible (UNRCCA) Cooperation11 avenues for gender-focused training and support in water Activity Phase I: Completed; Phase II: analytics. This grant has also strengthened capacity Status Completed to build national confidence and ownership. It allows CAEWDP US$143,939 transparency in model operations and promotes increased Grant trust among countries. Long-term investment in capacity Amount building should continue in order to allow for opportunities Task Team Daryl Fields in the political economy of water management. Leader Activity Title Legal Analysis of the Trans-Boundary Water Management Frameworks in The objective of this grant is to support the UNRCCA’s Central Asia programmatic activities aimed at assisting CA countries Activity Ongoing in developing a procedure and framework for the Status management of water in the region that addresses their CAEWDP US$70,000 trans-boundary challenges through international best Grant practices. International practice suggests that an ideal Amount procedure would be characterized by its commitment to Task Team Victor Bundi Mosoti facilitating cooperation in good faith, ensuring equitable Leader and reasonable results, preventing significant harm providing transparency, being neutral and impartial, being objective and focused on the facts; guaranteeing The objective of this grant is to contribute to a better an outcome in a timely manner, and being adaptable. understanding of the legal instruments regulating the International law and best practices suggest that an use of the Amu Darya and Syr Darya Rivers. Different idealized effective procedure would include the following riparian countries have expressed their views on the eight steps: notification; scoping; information gathering; interpretation and application of legal instruments negotiation; mediation; dispute resolution; monitoring regulating the use of the Amu Darya and Syr Darya and compliance. These formed the basis of the dialogue Rivers. This activity was created to provide a legal CAEWDP supported. The intermediate outcome was to analysis of the regulatory framework for trans-boundary convene a five-country dialogue to refine a draft template water management, including the rights and obligations for a Procedure which could form the basis of a treaty or of each riparian under the relevant instrument (e.g. the convention in the future between the five CA countries. 1995 Nukus Declaration, the 1987 Protocol 566). 11. This activity description represents two successive grants: the first from 2/2014 to 9/2014 and the second from 4/2015 TO 8/2015, worth US$97,410 and US$46,540, respectively CAEWDP | Annual Report 2015 41 The grant’s objective has been fully met and both Phase convene energy experts and decision-makers of CAREC 1 and Phase 2 have been completed. The grant provided countries to discuss and explore options to strengthen effective and timely logistical and technical support regional trade and is instrumental in implementing to UNRCCA which helped to ensure participation of CAREC’s energy strategy. UNRCCA’s consultants in the meetings The UNRCCA convened a senior level meeting in Vienna on March The development objectives of this grant are: (i) To 6-7, 2014, and a second meeting on 29-30 April 2015. enhance energy sector dialogue among CA countries During the meeting in Vienna in 2014, participants and (ii) To ensure coordination of donor assistance to discussed the problems of the interpretation and the energy sector in CA countries through participation effective application of the basic principles of in the Energy Sector Coordinating Committee (ESCC) international law on the management of trans-boundary meetings, senior officials’ meetings and ministerial water resources and agreed to continue discussions. conferences of CAREC. Participants included representatives of ministries and agencies of CA states, EC-IFAS, the World Bank, relevant At the end of 2015, the development objective for this UN structures, as well as international experts. The grant activity was largely achieved. The grant has continued provided effective and timely assistance with logistics. to enhance cooperation and dialogue on power sector The 2015 meeting was a follow up to the meeting in the issues among CA countries. The World Bank energy same format held in 2014 in Vienna. Both meetings saw team delivered presentations at the 19th CAREC senior officials of Kazakhstan, Kyrgyz Republic, Tajikistan, ESCC meetings on March 30-31, 2015 in Ulaanbaatar, Turkmenistan and Uzbekistan as well as representatives Mongolia, and on September 7, 2015 in Kuala Lumpur, of EC-IFAS, World Bank and relevant UN structures, as Malaysia. The country delegations showed great interest well as international experts. to the international experience on regional power trade. For instance, a joint presentation by the Kazakh Additionally, UNRCCA made progress on a draft delegation and the Bank team on regional power trade framework agreement on sharing trans-boundary waters at the ESCC meeting in Ulaanbaatar triggered an active in the Aral Sea Basin. The outcome of this engagement discussion and concluded with a request to the Bank is to articulate optional mechanisms for trans-boundary to conduct a study on benefits from CA regional power water management through a five-country dialogue to trade. On the 20th ESCC meeting, CAEWDP reported on improve understanding of options for dispute resolution the progress of the different segments of the CASA-1000 as part of the legal framework based on norms and project as well as updates on the ‘Energy Vulnerability principles of international law. to Climate Change’ study. The meeting also discussed updates on the deliverables of the Energy Work Plan Activity Title Central Asia Regional Economic Program (EWP) 2013-2015 and the current draft of the Energy (CAREC Engagement)12 Strategy and Work Plan 2016-2020. Activity Phase I: Completed; Phase II: Ongoing Status The draft new Work Plan 2016-2020 continues to include multiple CAEWDP activities: CAEWDP US$277, 314 Grant Amount yy Developing the Central Asia—South Asia Energy Corridor: This component will continue the work Task Team Yuriy Myroshnychenko, Daryl Fields Leader started under the 2013-2015 EWP . Several cross- border energy infrastructure projects are currently under implementation in the CAREC region. The CAREC ESCC—co-chaired by the ADB and the World Bank—is a key regional platform to engage CA countries yy Promoting Regional Electricity Trade and in energy issues. The ESCC oversees implementation Harmonization: As a continuation of work began of an energy action plan and specific analytical and under the 2013 to 2015 EWP , a study will be capacity-building initiatives through its committee and carried out to evaluate the current condition of subcommittee meetings. It provides a unique platform to the power market models, pricing rules, and tariff 12. This activity description represents two successive grants: the first from 2010 to 2013 and the second from 2013 to 2016, worth US$57,314 and US$220,000, respectively 42 CAEWDP | Annual Report 2015 regulation mechanisms, analyze existing power partners; (c) Riparian dialogue among all CA countries sector agreements among the CA countries, and and Afghanistan through a structured process for examine international best practice for establishing consultation and information sharing on the assessment power markets. A working group on regional market and related studies for the proposed Rogun hydropower arrangements to support the regional power trade project; (d) World Bank note on the Rogun Assessment study will also be arranged. Studies and issues for further consideration. yy Managing Energy-Water Linkages: The Energy During 2015, this grant activity provided support to Vulnerability to Climate Change study will provide international events and financial and technical support guidance for decision-makers on options for for multi-country dialogue. The program provided support investments in and management of power to EC-IFAS in two international events to promote generation, transmission, and distribution assets. implementation of the Third Aral Sea Basin Management Discussions will also continue on the possibility Plan. In addition, the program also provided financial of establishing a working group to deal with water and technical support to the UNRCCA for all-country resource management issues. dialogue on a cooperative framework agreement for trans-boundary water management. yy Capacity Development and Knowledge Management: the ESCC will also work to strengthen cooperation This grant activity successfully completed and met with other energy entities such as Energy the objective by enhancing the independence and Charter, International Energy Agency, International transparency, and ensuring the credibility of the highly Hydropower Association, etc., especially on contentious Riparian Program for the Rogun Hydropower improving capacity building and knowledge Assessment Studies. Through a series of five riparian management events for CAREC countries. meetings, online and in-country outreach, as well as coordinated communications, the Rogun riparian Next steps include preparation of and participation in the program facilitated a transparent study process, next CAREC ESCC meeting scheduled for end-March/early improving stakeholder dialogue and presenting a model April 2016. for discussions on regional water and energy resource management. The process engaged an independent Activity Title CAEWDP Riparian Dialogue Panel of Experts in the study review as well as the consultation process. The process stimulated a Activity Completed Status subsequent meeting of first Deputy Prime Ministers to discuss water management. The outcomes of the CAEWDP US$594,104 riparian consultations and information-sharing program Grant Amount included: (i) more extensive stakeholder involvement and public dialogue; (ii) improved quality of knowledge Task Team Daryl Fields base for the studies; (iii) strengthened client capacity; Leader (iv) demonstration of a process for regional resource management discussions based on international good The strategic objectives of this grant are to ensure a practices; and (v) moderated political rhetoric and transparent study process, increase knowledge based misinformation. on rigorous, independent information, and seek possible strategies to address trans-boundary implications. In Activity Title Central Asia Knowledge Network addition, the grant seeks to demonstrate alternative Activity Ongoing approaches to energy and water dialogue. Substantially Status completed in 2014, this grant covered the following CAEWDP US$300,000 specific activities: (a) World Bank funded studies to Grant augment those studies managed by the Government Amount of Tajikistan; (b) Establishment of two Panels of Task Team Julia Komagaeva Experts to review the technical rigor and results of the Leader assessment studies, participate in decisions related to study progress and report their views to interested CAEWDP | Annual Report 2015 43 The development objective of this grant activity is to In 2015, the grant made satisfactory progress towards foster cooperation and knowledge exchange among achieving its objective. Activities in 2015 included: local and regional institutions and practitioners in the areas of water resource management, energy and yy The umbrella Knowledge network platform (Central climate change in the CA region. The grant aims to Asia Knowledge Alliance for Development - establish a regional network of knowledge institutions CAsKADe) has been established, with a few CoPs and communities of practice (CoPs) of technical created and to become active in the Collaboration specialists. for Development (C4D) platform. The World Bank Institute (WBI) and CAEWDP jointly yy As part of the Academic CoP development, a developed this comprehensive integrated knowledge and regional student competition has been initiated. capacity building program. The Knowledge Network (KN) provides advice to its members through different forms of yy The activities of the champion CoP on Trans- knowledge sharing, exchange of experience, collaboration boundary Water monitoring and disaster early and outreach. The Network helps equip national warning in Kazakhstan have been supported, aiming knowledge institutions with cutting-edge curriculum, to expand this CoP work to other CA countries. knowledge and skills to build the capacity of Government officials and other professionals in water, energy, yy The regional coordinator for the knowledge agriculture, and climate change-related issues. network has been identified and hired to start institutionalizing the knowledge platform. 44 CAEWDP | Annual Report 2015 In addition, five important knowledge and exchange of INVESTMENT PREPARATION experience events were hosted: Activity Title Climate Adaptation & Mitigation Program yy In March 2015, the first workshop of the pilot for Central Asia (CAMP4CA) project “Creation of water apps in the field of Activity Completed integrated water resource management”, led by the Status Kazakh-German University and the World Bank took CAEWDP US$149,860 place. The event allowed the sharing of experiences Grant in the water-related data and water information Amount management and accessibility. Task Team Angela G. Armstrong Leader yy In May 2015, the Kazakh-German University and the EC-IFAS Directorate of Kazakhstan hosted a “Youth Water Day-Water Enterprises” event, which included The objective of this grant is to strengthen climate-smart a contest in which students presented innovative information, institution, and capacity for cross-sectorial and entrepreneurial ideas to further develop the and cross-country planning, investment preparation and water sector. implementation to increase regional collaboration in the long-term. The grant supported just in time preparation yy In June 2015, the Inter-Sectorial Working group, activities of the proposed CAMP4ASB investment project, a voluntary professional community of practice expanding the dialogue platform initiated by the ‘Central coordinated by the Regional Centre of Hydrology, Asia Climate Knowledge Forum’13 grant, for regular met to discuss upgrading monitoring techniques and meetings and technical exchanges on climate related systems for flood protection on the Syr Darya. issues, laying a foundation which would build better understanding and confidence, and allow countries to yy In September 2015, in collaboration with the aspire to more collaborative actions on climate. This Kazakh-German University and the Ministry grant was especially needed following the results of the of Foreign Affairs of Kazakhstan, a “Young CA Technical Working Group’s14 work on climate change. Civil Servants event on trans-boundary water Their results indicated that the countries are facing management” was convened to increase awareness similar sectorial challenges where resilience must be of water issues. strengthened (e.g., agriculture, water, energy, health, forestry, and biodiversity) as well as gaps for addressing yy In November 2015, the “Second Meeting of the these challenges (e.g., knowledge and capacity, lack Pilot Project for developing water resources mobile of an enabling regulatory framework, and access to application” was convened. The Pilot project aims finance and technology). These commonalities lend at developing the multi-disciplinary and multi- themselves well to a systematic and integrated approach sectorial aspects in water resources management at the regional scale, with higher gains than unilateral involving students from the region specialized interventions at the national level. in water resources and information technology, key institutions involved in water resources CAMP4CA enhanced regional coordination and access management, and the private sector. to improved climate change knowledge services for key stakeholders and supported vulnerable communities in implementing climate investments. Those living in poverty are most affected by the risks of climate change, as they tend to depend more directly on vulnerable land and water resources. The adoption of climate- smart strategies, such as adoption of sustainable land management strategies for agro-ecosystems, will impact 13. This CAEWDP grant was completed in 2014. For more details about this activity please see the 2014 Annual Report at http://documents. worldbank.org/curated/en/2015/10/25119348/central-asia-energy-water-development-program-progress-report-2014 14. The Central Asia technical Working Group is a group of technical experts nominated by the governments of the five CA countries to work across borders and sectors on climate-smart solutions. CAEWDP | Annual Report 2015 45 Activity Central Asia Water Resources farmers and communities and help address current Title Management (CA-WARM) Phase-I Project threats to agricultural production and rural livelihoods, Activity Ongoing stemming from climate risks such as droughts and Status weather extremes, and better adapt and become more CAEWDP US$250,000 resilient to climate change to not only restore productive Grant natural resources, but also to improve livelihoods and Amount food security. Task Team Nagaraja Rao Harshadeep Leader The grant has played a role in strengthening collaboration among CA stakeholders, with multiple face-to-face events in which Climate Adaptation and Mitigation Program This grant aims to support the preparation of the Central stakeholders discussed and reviewed program design Asia Water Resources Management Project - Phase I, and implementation arrangements. Grant-supported the overall objective of which is to improve national and activities helped countries advance preparation of regional accessibility, reliability and analytical capacity the investment project, defining needed inputs for to use water resources information for improved water the project’s regional information platform for climate resources planning, monitoring, and management. assessment and decision-making, as well as equipment Specifically, the grant will support preparation, needs to support targeted upgrading of climate-related and appraisal of the proposed Central Asia Water monitoring systems. In addition, grant-supported regional Resources Management (CA-WARM) Phase I Project collaboration events have helped define climate-smart and dialogue with the five national technical working investments to be financed under the Program, resulting groups, the regional technical working group, and the in the appraisal of the Program in April 2015 and the Regional Steering Committee as well as the Interstate Board approval in November 2015. The CAMP4ASB SOP Commission on Water Coordination (ICWC), its agencies II project, a $45m, 6-year project involving Tajikistan, and EC-IFAS. Uzbekistan and the Executive Committee of the International Fund for Saving the Aral Sea. Progress has been made on the preparation of CA-WARM Phase I project. During preparation, needs are identified The grant supported preparation and delivery of two that relate to: (i) data and analysis in the face of both face-to-face workshops with members of the CA a serious deterioration of inherited Soviet systems and Technical Working Group on Climate Change (TWG) and lack of investment in new technology; (ii) institutions other CA Stakeholders. The first meeting took place in to strengthen capacity of professionals as well as Almaty, Kazakhstan on November 13-14, 2014. The the national and regional organizational structures workshop engaged project counterparts to discuss and policies; and (iii) investment in new facilities and and reach agreement on CAMP4ASB SOP II’s scope equipment. and activities, monitoring indicators, and institutional arrangements. During this workshop, consensus was A concept note project outline and agreement with EC- reached that CAMP4ASB SOP II will support climate IFAS has been completed. The concept note identified change resilience in planning and investments, with the proposed development objective as to increase attention given to water and energy savings (e.g., on- accessibility, reliability and analytical capacity to farm water management and off-grid renewable energy use water resources information for improved water for rural communities). In addition, TWG members resources planning, monitoring, and management in participating in the workshop could review with Bank selected CA water institutions. specialists and gain a better understanding of World Bank requirements covering financial management, Further proposed outputs and outcomes from this grant procurement, and environmental and social safeguards, activity include: together with approaches to incorporate gender and citizen engagement considerations in the Program. A yy Access to reliable water resources monitoring data second workshop took place in early 2015. and forecasts improved; yy Institutional roadmap for water resources management at the regional level developed; 46 CAEWDP | Annual Report 2015 yy Use of strengthened information and technical prepared and has been shared with government and a capacity to address key water resources issues in key Uzbek think tank (the Center for Economic Research the CA region demonstrated; and (CER)). Verbal feedback has been obtained from the Minister of Finance and comments are expected from yy Priority investments to modernize water resources the Minister of Economy and the utility agency. The management prepared and implemented. second part of the objective was partially achieved. Discussions were held with the CER to organize a discussion seminar in March 2015 to debate methods WATER PRODUCTIVITY PILLAR and findings with policy makers and policy researchers. ANALYTICAL DEVELOPMENT The pioneering nature of this activity in Uzbekistan meant that it was not without challenges. During the Activity Title Social Impact Analysis of Water Supply process of consultation, it became apparent that and Sanitation Services in Central Asia the idea of collecting feedback and expenditure data Activity Completed directly from WSS consumers was a new concept for the Status utility agency and it needed time to digest. The team solicited their detailed feedback on the consultation CAEWDP US$169,849 Grant draft and incorporated the feedback into a report and Amount dissemination event that addresses their concerns without compromising the objective of the work. Task Team Robertus Antonius Swinkels Leader The major findings of this study include: The objective of this grant activity was to promote the yy There are serious and widespread drinking water engagement of consumers and the use of evidence and sanitation service inadequacies outside in developing WSS policies and plans for equitable Tashkent. Large inequalities in service conditions access to water supply in Uzbekistan. This was to be and WSS expenditure burdens were witnessed in achieved by: (1) conducting, with relevant stakeholders, our sample. an assessment of consumer perceptions and impacts of current WSS service access and quality; and (2) yy Rural households and those with low-incomes, in strengthening the capacity of country counterparts particular, experience hardship conditions with large in engaging customers and stakeholders in policy amounts of them using open water sources for their development and social accountability in WSS service drinking water needs. and investments. yy Data gathered from the selected sites show that Overall, this Technical Assistance was a breakthrough sanitation conditions are equally problematic if not and has resulted in the government currently preparing worse, suggesting public health is at risk. a new WSS strategy. Collecting the data on WSS service conditions from consumers and local officials has been a yy Households in the bottom 40 percent of the novelty in Uzbekistan. This TA also led to the World Bank income distribution witness larger expenditure CA regional country office reassessing the WSS lending burdens for meeting their WSS service needs than portfolio against the issues identified through this TA the top 60 percent. and what can be done in pipeline projects to better improve service conditions of the bottom 40 percent. yy There are serious performance problems of utility firms and many were said to be unable to conduct The first objective of this grant activity was largely repairs. achieved, whilst the second objective was partially achieved. Regarding the first objective, data on consumer yy Respondents of our study indicated a willingness to perceptions and impacts of current WSS service pay higher monthly fees than they currently do for a access and quality have been collected and analyzed. continuous supply of quality water. A consultation draft that summarizes findings has been CAEWDP | Annual Report 2015 47 Follow-up dissemination activities are planned and programs for utility modernization, loss reduction, findings will be used to inform WSS lending in Uzbekistan. energy efficiency, technology, etc. The expected Workshops with local think tanks and government officials outcomes of the grant include: have been planned in early 2016 to further promote debate and awareness of findings. A brown bag lunch was yy Improving sector knowledge and outlining also organized in November 2015 in Washington, DC to possible strategic policy reforms to better inform disseminate the findings of the study. governments’ and donors’ policy/strategy; and Activity Title Analysis of Water Supply and Sewerage yy Participation and engagement of stakeholders in the Services in Central Asia final activity workshop scheduled for September 2015. Activity Ongoing Status Draft documents containing policy recommendations for two countries were completed during 2015. The draft CAEWDP US$270,000 Grant reports on the policy recommendations for Tajikistan Amount and Uzbekistan were prepared. They have been shared with the countries and comments are currently Task Team Anna Cestari Leader being received. There have also been two rounds of consultations in each of the four countries on the preliminary diagnostic (August 2015) and the policy The objective of this grant activity is to provide a recommendations (November 2015). diagnostic of the current status and challenges of WSS in four key CA countries - Kazakhstan, the Kyrgyz Republic, Grant activities related to utility analysis have been Tajikistan and Turkmenistan—and to outline policy delayed. The utility’s analysis part is delayed due to priorities towards improved access, quality, efficiency, difficulties during the process of data collection. This has and sustainability of WSS services. This will be achieved impacted the overall delivery/completion of the study. by analyzing multiple dimensions of WSS sector The task team, in conjunction with the lead consultant, development, in part based on primary data collection are devising a solution to accelerate the progress on across countries sharing common sector legacies from this component. Dissemination is planned to take place the Soviet era. The study will contribute to informing the during a regional workshop in spring 2016. prioritization by governments of WSS sector reform and investment needs. Activity Title Strengthening Irrigation Governance Activity Completed The importance of this study is highlighted by the dire Status WSS situation across the four countries. It is estimated CAEWDP US$170,000 that —only 40%-58% of households have access to Grant piped water, inefficient water supply services experience Amount 40% water losses on average, and sewerage services Task Team Robertus Antonius Swinkels remain undeveloped outside the main urban centers. Leader This situation is rooted in incomplete reforms towards decentralization and financial autonomy of service provision since independence. Correcting this situation The development objective of this grant is to contribute calls for country-wide water demand management to better irrigation water management in CA through the programs, based on extensive prioritized water supply following expected grant outcomes: (i) identifying factors infrastructure rehabilitations, coupled with modernization and innovative practices that positively affect performance of sector policies, capacities and water usage incentives. of local irrigation water management institutions; (ii) preparing an associated diagnostic tool that will help in This grant activity aims to provide recommendations the design of program interventions for ongoing or future on how to strengthen WSS demand management irrigation operations; and (iii) facilitating exchange of good and efficiency programs in each of the four countries. practice experiences and knowledge of what works among This will be achieved by potentially fostering relevant relevant stakeholders across the region. Uzbekistan was regional cooperation and capacity-building initiatives, identified as a pilot for this grant. along with country-specific policy and investment 48 CAEWDP | Annual Report 2015 The activity has successfully identified key factors and This activity employed a case study research approach, conditions that are associated with good performance of which proved to be highly successful in achieving insights local irrigation canal water management in Uzbekistan. into local governance and management arrangements The assessment was well received by the Country for irrigation. Using case study research method, the Management Unit (CMU) and Uzbek irrigation water research found that the number of smallholders, water management experts. The CMU claimed that the availability for cultivating profitable secondary crops diagnostic tool that was designed will help focus and the irrigation fees associated with those secondary program interventions for strengthening local irrigation crops, and accountability of the public irrigation authority water governance in the WB irrigation portfolio in the are the major factors that determine the quality of local country. It intends to explore options for pilot testing irrigation water governance. The case study methodology the tool in one of its irrigation operations in Uzbekistan has been unusual in this kind of study but has been (Fergana valley 2). The activity created an opportunity highly successful as to providing a whole picture of the for World Bank dialogue with the client on the content local management of irrigation, despite the potential of a new Water Code needed to strengthen the legal sensitivity of the topic in Uzbekistan. framework for local water user associations. The findings are highly relevant for other CA countries given Following completion of the report, several follow- their common irrigation sector legacy and the pilot has up activities were planned. Follow-up activities after enabled further development of the methodology. September 2015 include: (i) sharing a consultation draft with the client and other stakeholders, (ii) gathering their feedback and incorporate that into a final draft, (iii) hold discussions with Regional Water GP Lead to explore operational application of the diagnostic tool. Further dissemination workshops are foreseen and expanding the work to other CA countries is also being explored. CAEWDP | Annual Report 2015 49 INVESTMENT PREPARATION To finalize the activity, the final steps include: Activity Title Promoting Irrigation Efficiency yy Consultations with the country partner; and Activity Ongoing Status yy Publication of the final output by March 2016. CAEWDP US$250,000 Grant Activity Title Technical Assistance for Developing Amount Water Information Systems in Central Asia Task Team Ijsbrand Harko de Jong Leader Activity Ongoing Status CAEWDP US$470,000 The overall development objective of this grant was Grant to assist the five CA countries in improving irrigation Amount efficiency by conducting thematic studies at the national Task Team Daryl Fields level, strengthening capacities and institutions, and Leader preparing National Action Plans for improving irrigation efficiency. The grant would raise awareness among national stakeholders about the importance of irrigation The objective of this grant is to provide analytical efficiency and its costs to the national economy, as well foundations for the ‘CA-WARM’ project, which is aimed as the opportunities to improve this. While the activity at strengthening the water information management will be implemented at the national level, it has been systems to increase accessibility, reliability and designed to take advantage of an improved environment analytical capacity to generate and use water resources for regional collaboration if it materializes during information in CA. The recommendations will provide implementation. scoping needs, gaps, preparedness and consequent action plans for technical and capacity investments as The grant supported a study in Tajikistan to assess input to the design of CA-WARM Phase-I Project while the costs, causes and solutions of and for irrigation improving linkages with other relevant national-level and inefficiency. The activity generated interest both regional-level activities. The gap analysis will build on within and outside Tajikistan. The study produced the existing water resource information systems and identify methodology for determining the costs of irrigation incremental investments needed to establish a regionally inefficiency at the level of the Tajikistan national compatible water resources information system for CA economy and the methodology for planning irrigation guided by international good practice. efficiency investments. The team had a QER in 2015 and based on the feedback, the team modified the The grant activity comprises three components: national report to better articulate the causes of inefficiency. action plans (“roadmaps”), regional assessment, and The study has prompted interest in Tajikistan to better global review of good practices. The national action understand the cost of water and energy intensity, whilst plans cover all countries in CA. The regional approach significant interest in addressing irrigation inefficiency would be designed to knit and complement country- was communicated also by Kazakhstan. The study was level approaches to establish a regional water resource effective in quantifying the cost of irrigation inefficiency information system that is open, coherent and easy to due to expensive pumping. The findings of the analysis maintain. The global review will take advantage of World provide incentives for more rational and efficient use of Bank lessons from other regions. energy and water resources, especially in the context of CASA-1000. 50 CAEWDP | Annual Report 2015 Scoping activities at national, regional and global technical assessment activities. A technical mission was level have been initiated, with a particular focus at the organized in August-September 2015 in the context of national level during 2015. National level activities have the CA-WARM project. The mission visited four countries been the focus of 2015 activities. In each CA country, and started the assessment activities at the national consultations have been organized to collect analytical level as well as scoping the needs and priorities at the inputs from key water related stakeholders. The team regional level. Workshops were organized in Kazakhstan, gained an understanding of the current situation as Kyrgyz Republic (Using the CA-WaRM Working Group), well as planned objectives to support modernization Tajikistan and Uzbekistan, convening stakeholders towards a reliable information system and analytical from various water institutions (i.e. Agriculture, Energy, capacities for effective planning, operations and Policy, Hydromet, and Environment). The participants management of water resources. The experts provided appreciated the organization of such events and not only inputs for the national but also priorities at the considered the meetings as excellent platforms for regional level. Additionally, in complementarity with the inter-institutional and multi-sectorial dialogue. Individuals CA-WARM project preparation process at the national have been appointed in Kazakhstan, the Kyrgyz Republic, level, focal points within key water institutions have been and Uzbekistan. identified to support, among others, the analytical and RESULTS FRAMEWORK & 2015 RESULTS CHAIN Annex II 52 CAEWDP | Annual Report 2015 This annex contains: yy The top two tiers of the CAEWDP Results Framework, which outline the overall program goal and development outcomes by 2014; and yy A results chain, which measures the program outputs as at the end of 2015. TABLE 3 — CAEWDP RESULTS FRAMEWORK (TOP TWO TIERS) PROJECT TITLE Central Asia Energy Water Development Program (CAEWDP) GOAL (Impact) Indicator Baseline Milestone 1 Milestone 2 Outcome 2014 2010/11 Regional cooperation Regional Disparate Agreement on Skills and At least two catalyzes long-term organizations national level collaboration tools in place regional economic growth and and national investments with key to facilitate institutions livelihood security bodies have and regional regional operating to Central Asia and capacity fragmented institutions, dialogue for in capacity provides a catalyst to support regional supported cooperation. to support for continued transboundary cooperation by Heads of transboundary economic growth and dialogue State dialogue in increased income on regional key economic cooperation. sectors. Source:Existing institutions mandates and activities. DEVELOPMENT Indicator Baseline Milestone 1 Milestone 2 Outcome 2014 Risks OBJECTIVE 2010/11 (Outcome) At least three TAJ & KYRG Needs Winter energy TAJ & KYRG Regional investment or have winter Assessment coordination Winter energy organizations are policy options energy deficit. completed plans in place. security too weak to be (two of which identifying improved from able to convene targeted at priority 2009/10 substantive inter- Tajikistan & activities situation state dialogue on Kyrgyz Republic) water-energy initiated to strengthen There is no stability and dialogue on predictability of water and power supplies energy, limited to individual national discussions Source: Government statistics CAEWDP | Annual Report 2015 53 DEVELOPMENT Indicator Baseline Milestone 1 Milestone 2 Outcome 2014 OBJECTIVE 2010/11 (Outcome) Strengthened At least two Few current Potential At least two At least one mutually beneficial investment investment national investment water and regional cooperation decisions decisions and regional projects one energy enhances energy on national on water energy water selected investment take security and water level water or and energy investments into account security. energy projects take into identified transboundary include clear account the implications understanding transboundary for effective of their implications. use of water transboundary and energy implications. resources. Source: Government Reports, World Bank country CASs, pipeline of investments Program Active donors Draft Established Multi-Donor activities are in the region, agreement MDTF with a trust Fund fully coordinated disparate on Multi- minimum of operational. and donor coordination Donor Trust two donors supported and inefficient Fund (MDTF) contributing. through an and donor MDTF (Multi coordination Donor Trust based on Fund) consultations , others. Source: Water Sector: DFID, EC, Finland, Germany, Switzerland, UNDP Energy Sector: ADB, Russia, USAID, WB, others. Sustainable for No shared Analytical Analytical improved water institutional Analytical framework framework dialogue across and analytical Framework agreed at is used in Central Asia framework developed technical transboundary stakeholder’s exits in the with input level between water policy exits. region from technical at least two discussions; specialists of states; Regular all CA states Institutional communication links on between analytics relevant between at technical least three institutes in CA states are in states place Source:Communication monitoring reports 54 RESULTS CHAIN 2015 The Results chain below outlines the activities for each of the three program pillars against: (i) planned outputs; (ii) pre-2015 outputs; and (iii) end of 2015 outputs. — CAEWDP 2015 RESULTS CHAIN TABLE 4 ­ Activities Components Planned Outputs Pre 2015 2015 (Indicators) Component a) Energy Security in National energy 1. National energy plans in Tajikistan and (1) Enhancing Regional Power Trade: a series I: Energy Central Asia Countries: plans in at least two Kyrgyz Republic took into consideration of consultations with CA countries were held CAEWDP | Annual Report 2015 Development Design and implement countries take into inter- and intra-regional energy trade and a study to assess benefits from regional pillar measures to alleviate consideration inter- and implications (Contributes towards power trade for CA countries was prepared severe winter energy intra-regional energy Component b). (Contributes towards Component c) shortages as a base trade implications for sustainable energy 2. Pre-investment analysis completed for (2)-Kyrgyz Republic: Heating Efficiency security (2) Pre-investment 30+ options for stable and predictable Improvement Assessment was finalized, analysis completed winter power supply in Tajikistan & shared with government and the responsible b) Intra-Central Asia for two options for Kyrgyz Republic (Contributes towards district heating company plans to use the trade: Enhance energy stable and predictable Component a) proposed prioritized investment package. trading among CA winter power supply (Contributes towards Component a) countries by transition in Tajikistan & Kyrgyz 3. Bishkek considered regional to more efficient, Republic implications of national investments (3) -Kazakhstan Renewable Energy market transactions (Contributes towards Component b) Integration in Power Market and System: Two based on well- (3) National energy draft reports (reintegration into the network designed commercial generation institutions 4. Tajikistan Energy Sector Action Plan for and reintegration into the market) have been contracts considered regional 2015-2017 and CAREC Energy Sector provided (Contributes towards Component implications of national Coordinating Committee (ESCC) Energy b). c) Connecting CA investments Work Plan (2013-2015) supported to Regional Power increased transmission infrastructure (4)-Heating and Energy Efficiency Assessment Markets: Build (4) Political and planning (Contributes towards for the Building Sector of the Kyrgyz Republic the foundation for financial support Component c) reports were finalized (Contributes towards development of a increased for Component a) power market linking transmission 5. One new investment decision, CASA- Long-Term Sustainable Energy Sector Strategy Central to other infrastructure planning 1000 approved March 2014, included and the Continuing Role of CAEWDP report regions inter regional implications (Contributes was finalized. (5) At least one new towards Component b) investment decision (5) Kyrgyz Republic - Advisory Support for includes inter- /intra- the Regional Trade Initiatives Project the regional implications Coordination Agreement between Tajikistan and Kyrgyz Republic Entity was finalized (6) Strengthened (Contributes towards Component b) Institutional Development (energy (6) Central Asia: CAREC Energy Sector trade institutions) Coordination Two ESCC meetings were held, draft of Energy Strategy and Work Plan 2016-2020 was discussed (Contributes towards Component b) Activities Components Planned Outputs Pre 2015 2015 (Indicators) Component II: a) Decision support: Expand data 1. Expanded data management to enhance (1) Central Asia Energy-Water Portal “Spatial Energy-Water Strengthen the management to energy/water analysis: Agent” mobile app was demonstrated at a Linkages pillar knowledge base and enhance energy/water yy Strengthening Analysis for Integrated regional workshop to promote innovation technical capacity to analysis Water Resources Management: and technology in regional water resource manage water and A Technical Workshop (Ashgabat, management; three mobile apps are being energy resources at Regional dialogue on November 4-5, 2014) (Contributes developed to answer to key information the national level, and at least two priority towards Component a). needs of the institutions (Contributes support evidence- water & energy yy Assessment of the Role of Glaciers in towards Component a). based dialogue issues facilitated by Stream Flow from the Pamir and Tien regional and national Shan Mountains (Contributes towards (2) -Support to the UNRCCA Trans-Boundary b) Climate Change: organizations. Component b). Water Cooperation Process convened a Identify climate yy Spatial Agent Application for IPhone meeting in 2015 to discuss issues related change risks and (3) Strengthened and Android (Contributes towards to the interpretation and efficient application develop adaptation regional organizations Component c). of key principles of international law in strategies in energy, capacity to facilitate yy Basin IT Workshop (February 2014) the management of trans-boundary water and agriculture regional dialogue (Contributes towards Component c). resources in the Aral Sea Basin (Contributes towards Component c). c) Riparian dialogue: (4) Climate change 2. Regional dialogue on Rogun -Legal Analysis of the Trans-Boundary Water Facilitate dialogue (CC) adaptation Assessments Climate Change, and Management Frameworks in Central Asia A across countries to implications recognized Energy security and trade were draft report has been produced (Contributes improve coordinated for both energy and facilitated by regional and national towards Component c) management and water. organizations. (3) -Central Asia Knowledge Network development of yy Rogun Consultations facilitated by the Four events on trans-boundary water shared resources, (5) Strengthened World Bank (May 2011, November management were hosted in Central including nurturing analytical framework is 2012, February 2013, October 2013, Asia; the umbrella Knowledge Network regional institutions used to support water/ July 2014) (Contributes towards platform has been established and is (ECSS & EC-IFAS) energy dialogue Component c). being institutionalized (Contributes towards and communities of yy United Nations Regional Centre for Component c). practice. Preventive Diplomacy for Central Asia cooperation on a framework (4) Energy Vulnerability to Climate Change: agreement for sharing trans-boundary a draft report is completed (Contributes waters (Vienna, March 2014) towards Component b) (Contributes towards Component c) yy CAREC ESCC Meetings (2012-2014) (5) Capacity Strengthening for IWRM (Contributes towards Component a) Modeling National Workshop was held yy 2nd Central Asia Climate Knowledge with Turkmenistan specialists on a 1-2 Forum: Moving towards Regional year water program at national and Climate Resilience (May 2014) regional scales. A five-day training course (Contributes towards Component c) with professionals from all six Aral sea Basin countries (including Afghanistan) as well as representatives of the regional water organization (Contributes towards Component a).   CAEWDP | Annual Report 2015 55 56 Activities Components Planned Outputs Pre 2015 2015 (Indicators) Component II: 3. Strengthened regional organizations Energy-Water capacity to facilitate regional dialogue. Linkages pillar yy The World Bank and EC-IFAS have agreed to prepare a $25-75 million Continued project under the Third Aral Sea Basin Plan (Contributes towards Component c). yy International Panel of Experts to assist Tajikistan in the Rogun CAEWDP | Annual Report 2015 Consultations (Contributes towards Component c) yy A regional reconnaissance combined with national consultations facilitated the exchange of information on cutting edge approaches to analysis for IWRM for 231 water resources, irrigation, glacier, groundwater, energy, and environmental national experts (Contributes towards Component a) yy Aral DIF Water modeling increased awareness and knowledge in publically available global data sets (including remote sensing) and modeling platforms as a modern basis of a decision support system for IWRM for 20 technical model and data specialists from all six countries of Central Asia (inclusive of Afghanistan) (Contributes towards Component a) yy Basin IT Workshop over a three day training module was developed by the World Bank Institute based on Basin IT, a water resources management trade-off analysis training tool, to build capacity for 22 student, young professional participants, and professors from all six countries of Central Asia (inclusive of Afghanistan) (Contributes towards Component a) Activities Components Planned Outputs Pre 2015 2015 (Indicators) Component II: 4. Climate change (CC) adaptation Energy-Water implications recognized for both energy Linkages pillar and water: yy Towards Climate-Smart Solutions Continued for Central Asia Draft (Contributes towards Component b) yy Turn Down the Heat: Confronting the New Climate Normal Report (Launched November 2014) (Contributes towards Component b) yy Capacity Building Workshop for Regional Scientists in Potsdam facilitated by Potsdam Institute for Climate Impact Research (PIK) (Germany, March 2014) (Contributes towards Component a) yy Central Asia Technical Working Group on Climate Change, comprised of government-nominated experts from all Central Asia countries to work collegially on climate-smart solutions across sectors and borders (Contributes towards Component c) CAEWDP | Annual Report 2015 57 58 Activities Components Planned Outputs Pre 2015 2015 (Indicators) Component a) Dam safety and IFAS’ capacity in 1. IFAS’ capacity in agricultural water (1) Central Asia Water Management a series III: Water rehabilitation: improve agricultural water management strengthened, and of Policy Discussion Papers on Central Asia Productivity dam safety and water management communication between national Water Resources Management, as well as pillar management at bulk strengthened, and agricultural water specialists improved. Country Profiles were produced (Contributes infrastructure facilities communication yy Draft Country Report for Uzbekistan towards Component c). between national “Social Impact Analysis of Water b) Irrigation Efficiency: agricultural water Supply and Sanitation Services (2) -Strengthening Irrigation Governance improve efficiency specialists improved in Central Asia” presenting produced a diagnostic tool and an of irrigation at innovations and factors of success assessment that identified key factors and CAEWDP | Annual Report 2015 the national level (2) Infrastructure of local management of irrigation conditions that are associated with good through prioritization and management and drainage water management performance of local irrigation canal water of investments opportunities (including (Contributes towards Component d) management in Uzbekistan (Contributes opportunities, investments) for yy Poverty and Social Impact Analysis towards Component b). strengthening increased agricultural (PSIA) Diagnostic tool (Contributes -Promoting Irrigation Efficiency, The capacities and water productivity towards Component d) methodology for planning irrigation institutions and identified efficiency investments was completed and introducing new 2. Draft Report “The Costs of Irrigation a methodology for determining the costs technology (3) National action Inefficiency in Tajikistan” (Contributes of irrigation inefficiency at the level of the plans for increasing towards Component b) national economy is in draft. A review of c) Water resources agricultural water irrigation efficiency in Tajikistan is being diagnostics: productivity prepared finalized (Contributes towards Component b). Strengthen data and analysis of water (4) Understanding (5) -Social Impact Analysis of Water Supply resources as a basis of regional water and Sanitation Services Report was produced for policy development productivity is reflected (Contributes towards Component d) and investments in national plans, -Analysis of Water Supply and Sewerage policies and/or Services in Central Asia Draft Reports on d) Water supply sector investments of at least policy recommendations for Tajikistan and diagnostics two countries Uzbekistan are under preparation, with 2 rounds of consultations in each of the four (5) Understanding of countries on the preliminary diagnostic and water supply sector the policy recommendations. priorities is improved WWW.WORLDBANK.ORG/ECA/CAEWDP The Central Asia Energy-Water Development Program (CAEWDP) is a knowledge and technical assistance multi-donor trust fund (MDTF) administered by the World Bank. CAEWDP’s mission is to build energy and water security for the countries of Central Asia—Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan—through enhanced regional cooperation. Since its inception in 2010, CAEWDP has received support from bilateral and multilateral donors including the Government of Switzerland’s State Secretariat for Economic Affairs (SECO), the European Commission (EC), the United Kingdom’s Department for International Development (DFID), the United States Agency for International Development (USAID), and the World Bank Group.