central asia energy-water development program

Building energy and water security through regional cooperation

Central Asia Energy–Water Development Program(CAEWDP)

January 2011

Central Asia Energy–Water Development Program

Cooperation changes development

Major constraints to economic growth and political stability

1 Over $2 billion savings from increased energy trade, with environmental benefits in reduced greenhouse gas emissions

2 $7m/yr savings in public expenditures from a 1% increase in water pumping efficiency in one country

3 $200m/yr new revenues from energy experts to South Asia from initial phases of CASAREM project

1 600 million m3 potential water shortages (Syr Darya)

2 2 million households experiencing winter heat and power shortages

3 90% less energy traded within Central Asia since 1990

4 1% loss in GDP per year from weather-related disasters (in Tajikistan and Kyrgyz Republic)

Accelerated investment, enhanced environmental quality and improved livelihoods

The consequences of doing nothing Potential benefits of intervention

Regional challenges CAEWDP solution Expected benefits Why now, why the World Bank? What will be delivered, and when? Opportunities for donor collaboration


CAEWDP builds on global lessons

Successful programs:

• Work with countries to build on national aspirations and priorities

• Nurture donor coordination

• Address a package of three core issues:

1 Physical, intellectual and management hubs for regional cooperation

2 Objective analysis of the costs and benefits of cooperation to national interests

3 Investments to deliver infrastructure and strengthen livelihoods

“Regional programs offer substantial potential to achieve results on development issues… regional projects have successfully built new assets and protected existing ones in ways expected to benefit all participating countries.” (Independent Evaluation Group (2007) Evaluation of World Bank Support of Multicountry Operations )

Transboundary water management Regional energy markets

Eastern Nile River Development

Energy Community of South East Europe

Mekong River Basin; NT2 Hydropower

Senegal River Basin

West AfricaPower Pool

India Power Grid

South Asia Water Initiative


Indus River Treaty

Eastern China Power Markets

Danube RiverBasin

Turkey PowerInterconnection

Red Sea/Dead SeaWater conveyance

Nile Equatorial Lakes River Basin

Zambezi River Basin


Investment Preparation

Water Productivity

Diagnostics and Analysis

Energy-Water Linkages

Regional Institutions

Energy Development

CAEWDP: An integrated program

Supported by

• Global experience• International panel of advisors• Donor support



Partnerships are critical

National Governments• Unique national interests and priorities • National technical experts

Regional Organizations• ESCC Energy Action Plan (with ADB)• EC-IFAS Third Aral Sea Basin

Management Program

Donors• Strong portfolios in energy and water;

World Bank fills a recognized gap in the energy-water nexus• Joint activities are underway; Interest

in new investment opportunities

National Governments

Regional Organizatons

Donors

World Bank



A comprehensive set of activities

Energy-Water Linkages ($12M)

Energy-Water Modeling Reg model architecture Underway Reg Model Development Planned Regional Hydrometeorology Initiated

Climate Vulnerability: Energy Underway

Dialogue Rogun dialogue Initiated Energy-water experts forum Planned

Energy Development ($9m)

Energy Infrastructure PlanningRegional Infrastructure Master Plan Diagnostic Study [ADB] Completed Complete Plan [ADB] Initiated Planning capacity Planned

Winter energy Scoping Study Underway Plan for Kyrgyz Rep and Tajik Planned

Regional Energy Trade Trade Diagnostic Completed Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated

Inter-Regional Energy Trade CASA 1000/UAP/NS Transmission Underway

Energy Accountability Planned

Institutional Development ESCC Dialogue/Expert Forum Underway

Water Productivity ($12m)

Capacity Strengthening Ag Water Capacity Needs Assessment Planned Capacity Strengthening Planned Agricultural water expert forum Planned

Infrastructure and Management Opportunities IFAS/ARAL Sea Basin Package Initiated

National Action Plans for Water Productivity Planned

Rehabilitation of Energy and Water Infrastructure Planned

Program Foundations ($7M)

Regional institutions InitiatedExpert Panel InitiatedCoordination Underway









Energy Infrastructure PlanningRegional Infrastructure Master Plan Diagnostic Study [ADB] Completed Complete Plan [ADB] Initiated Planning capacityPlanned







Capacity Strengthening Ag Water Capacity Needs Assessment Planned Capacity Strengthening Planned Establishment of Ag Water Specialists’ Platform Planned



Rehabilitation of Energy and Water Infrastructure



CASA 1000 and UAP (CASAREM)

Objective: Diversify Central Asia energy markets by connecting energy deficits in South Asia .

Activities: For CASA: Feasibility studies, Environmental and Social impact assessment; Capacity building; Specialist support for all countries. For UAP: Feasibility assessment started

Budget: $3m Timeline: 2010 - 2013




Energy-water Linkages ($12M)






Winter energy Scoping Study Underway Complete Plan for Kyrgyz and Tajik Planned










Program Support ($7M)


Energy-water modeling Objective: Establish a common platform for analysis, accepted by and useful to all countries ; Support both collective and national dialogue on regionally significant initiatives.

Activities: National and regional workshops for model design, Model inventory and assessment, Model development and integration of existing tools ; Regional expert team supported by international colleagues.

Budget: $3m Timeline: 2011-2013










Winter energy Scoping Study Completed Plan for Kyrgyz Rep and Tajik Planned










Program Support ($7M)


Regional Hydrometeorology Program

Objective: Improve coordination and training between National Hydrometeorological Services of the Central Asian countries to strengthen data quality and quantity, and data sharing

Activities: Draft MOU and program of regional activities and investments (completed); Improve capacity of CA NMHSs, Improved early warnings, Systems integration, Regional system of training and professional development.

Budget: $5m Timeline: 2011- 2014






















Third Aral Sea Basin program

Objective: Support range of proposals from Central Asian country experts to improve water management

Activities: Assist in identifying strategic opportunities; Convene national experts; Fund specific initiatives focused on water productivity

Budget: $5-8m Timeline: 2011 - 2014






















International Panel of Advisors

Objective: Provide independent advice and international state-of-the-art expertise

Activities: Identification and funding of experts for specific stated needs (e.g., program development, project assessment)

Budget: $4m Timeline: Program life




World Bank Energy-Water Portfolio in Central Asia

Country Examples of Recent Projects Amount ($M) Status

KGZ Emergency support 4 Approved

TAJ Emergency winter shortage support 15 Approved

UZB Energy Efficiency Fund for Industrial Enterprises

25 Approved

KGZ Emergency recovery project (covering budget and energy sector)

70 Submitted to Board

KAZ Alma Transmission Project 78 Under process

KAZ Syr Darya Control & Northern Aral Sea Phase II Project

165 Under process

UZB Ferghana Valley Water Resources Management Phase-I Project

65 Approved

KGZ Second On-farm Irrigation Project 16 Approved

TAJ Community Agriculture & Watershed Management Project

11 Approved

CAEWDP complements national initiatives


Moving forward

1 Maintain momentum on work program implementation (complete current activities; initiate new ones)

2 Deepen dialogue with national governments

3 Secure financing and donor involvement



Opportunities for donor involvement


Opportunity How? Example

Exploit synergies Take advantage of common program objectives

IFAS institutional supportEU Central Asia Investment Facility

Undertake joint activities

Collaborate on methodologies or technical assistance activities

USAID climate change ADB Energy Sector Coordinating Cttee

Support multi-donor trust fund

Donor contributions to fund core program activities

Swiss seed fundsDFID Administrative Arrangement (in preparation)

CAEWDP welcomes different avenues for cooperation

central asia energy-water development program

Self Improvement