CENTRAL ASIA WATER AND ENERGY PROGRAM Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM Annual Report 2018 © 2019 The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: +1 (202) 473-1000 Internet: www.worldbank.org The 2018 CAWEP Team Christina Leb, CAWEP Program Manager Azad Abdulhamid, Water Security Pillar Leader Husam Mohamed Beides, Energy Security Pillar Leader Gayane Minasyan, Water-Energy Linkages Pillar Leader Togzhan Alibekova, Field-based Program Liaison Mariya Pak, Communications ACKNOWLEDGMENTS CAWEP (formerly known as CAEWDP) is a regional knowledge and technical assistance partnership administered by the World Bank and funded by the European Union, Switzerland and the United Kingdom. The report benefited from inputs from the teams in the Sustainable Development and Infrastructure Global Practice Groups. Led by Christina Leb who provided oversight and guidance, the CAWEP team drafted, coordinated production of the report and provided technical review. Editorial review was provided by Meriem Gray, Senior Communications Officer for the Water Global Practice, and the Europe and Central Asia External Communications team. Valuable comments were provided by David Michaud, Sascha Djumena and Sameer Shukla. 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. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: +1 (202) 522-2422; email: pubrights@worldbank.org. PHOTO INFORMATION Unless otherwise noted, all photos are © World Bank Cover photos: © Mirzobek Ibragimov, Togzhan Alibekova, Dan Ava Report design: Studio Grafik, LLC Contents EXECUTIVE SUMMARY ..................................................................................................................................................................................................................................... 1 About the Program........................................................................................................................................................................................................................................ 2 Regional Context ............................................................................................................................................................................................................................................ 3 Program Highlights for 2018................................................................................................................................................................................................................ 4 Program Administration and Disbursements......................................................................................................................................................................... 5 CHAPTER 1. REGIONAL AND COUNRY CONTEXT..................................................................................................................................................................... 6 CHAPTER 2. PORTFOLIO AND PROGRAM ACTIVITY SUMMARY .............................................................................................................................. 8 CAWEP Objective and Approach....................................................................................................................................................................................................... 9 Program Progress in 2018....................................................................................................................................................................................................................... 9 Summary of Activities 2018...............................................................................................................................................................................................................12 CHAPTER 3. TRUST FUND MANAGEMENT AND FINANCIAL OVERVIEW...........................................................................................................16 Program Administration......................................................................................................................................................................................................................... 17 Partner Engagement.................................................................................................................................................................................................................................. 17 Communication, Donor Outreach and Donor Engagement........................................................................................................................................18 Financial Overview.......................................................................................................................................................................................................................................18 Looking Forward.............................................................................................................................................................................................................................................19 ANNEX 1. PROGRAM ACTIVITY DETAILS......................................................................................................................................................................................20 Water Security Pillar................................................................................................................................................................................................................................20 Energy Security Pillar............................................................................................................................................................................................................................... 22 Water-Energy Linkages Pillar............................................................................................................................................................................................................25 ANNEX 2. RESULTS FRAMEWORK......................................................................................................................................................................................................28 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | i ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank AFG Afghanistan ASBP-4 The fourth Aral Sea Basin Program CA Central Asia CAEWDP Central Asia Energy-Water Development Program CAKN Central Asia Knowledge Network CASA-1000 Central Asia-South Asia power project CAWEP Central Asia Water and Energy Program CAREC Central Asia Regional Economic Cooperation CARECenv Regional Environmental Center for Central Asia CAREM Central Asia Regional Electricity Market CDC Energia Coordinating Dispatch Center Energia DABS Da Afghanistan Bresha Sherkat DFID United Kingdom Department for International Development EC-IFAS Executive Committee of the International Fund for Saving the Aral Sea ESCC Energy Sector Coordinating Committee EU European Union GIZ German Society for International Cooperation HPP Hydropower plant IFAS International Fund for Saving the Aral Sea IWRM Integrated water resource management KZ Kazakhstan KG Kyrgyz Republic NDC National Dispatch Center PACT Program for Asia Connectivity and Trade SECO State Secretariat for Economic Affairs of Switzerland SDC Swiss Agency for Development and Cooperation TJ Tajikistan TM Turkmenistan TTL Task Team Leader TUTAP Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan power interconnection project financed by ADB UK United Kingdom UNESCO United Nations Educational, Scientific and Cultural Organization UNRCCA United Nations Regional Centre for Preventive Diplomacy for Central Asia USAID United States Agency for International Development UZ Uzbekistan WSS Water supply and sanitation ii | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 EXECUTIVE SUMMARY This Annual Report describes activities and management of the Central Asia Water and Energy Program for the period of January 1–December 31, 2018. It is the first Annual Report for the third phase (2018–2022) of the program. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 1 About the Program The long-term vision of the program is to promote sustainable development and livelihood security within The Central Asia Energy-Water Development Program the region. The program finances initiatives that support (CAEWDP), initiated in 2009 and renamed to the Central improvements in water and energy management and Asia Water and Energy Program (CAWEP)1 in 2019, is development, strengthen national and regional institutions implemented by the World Bank through a multi-donor trust and facilitate regional dialogue with a view to promoting fund. The third phase of the program commenced with a water and energy security and helping to realize the US$3.5 million contribution of the Swiss State Secretariat benefits of regional cooperation to advance sustainable for Economic Affairs (SECO) as a single financing partner. development and climate resilience. The UK Department for International Affairs (DFID) re-joined the program in August 2018 through the Program for Asia By the end of December 2022, the program aims to have Connectivity and Trade (PACT) contributing US$1 million to contributed to the following: finance energy activities in Afghanistan, Kyrgyz Republic, Tajikistan and Uzbekistan. The European Union became the •• Improved policy frameworks that promote achievement third financing partner of the program in 2019 contributing of water and energy security adopted at national level; €7 million to the activities in Central Asian countries. •• Promotion of a regional framework supporting water and/or energy security informed by the program; The program design for the third phase has been •• Strengthened capacity in regional and national influenced by the lessons learned from the prior phases. institutions responsible for water and/or energy The program development objective has been adjusted resources management in beneficiary countries; and to place greater emphasis on water security rather than •• Leveraged/informed US$2.5 billion (US$0.8 billion for just water productivity, to emphasize both the regional the third phase) of investments2 contributing to water and national levels with respect to enabling environment and energy security at regional level and in beneficiary strengthening. The program development objective countries, including regional power trade. for Phase III is therefore to strengthen the enabling environment to promote water and energy security at Structured along three pillars: (1) Water Security; (2) Energy regional level and in the beneficiary countries, herewith Security; and (3) Water-Energy Linkages, the program pursues aligning with the Bank’s regional engagement framework three components since its inception: (a) data and diagnostic that aims at strengthening connectivity and increasing the analyses; (b) institutions, capacity and dialogue; and (c) economic value of water and energy resources in the region. supporting investments. The objective of the Water Security Pillar is to promote sustainable and efficient use of shared The pillar structure and content are adjusted with an water resources and national integrated water resources increased focus on facilitating water and energy security management (IWRM) through capacity building, institutional as the guiding principles of the entire program. National strengthening and investment planning to achieve water activities will provide important building blocks for security at the national, bi/multi-lateral and regional level. achieving water and energy security at the regional level. The Energy Security Pillar aims to improve the security and An increased emphasis is placed on capacity building economic efficiencies of energy supply at national, bi/multi- for, and within, institutions and on dialogue to catalyze lateral and regional level. The Water-Energy Linkages Pillar investments, and Afghanistan is now formally included as a supports activities related to the water-energy nexus at the beneficiary country. national, bi/multi-lateral and regional level, climate-change related activities linking two or more countries as well as regional and cross-border dialogue processes. 1 As per the decision of the Program Advisory Committee in March 2019 the program name changed from formerly Central Asia Energy-Water Development Program (CAEWDP) to Central Asia Water and Energy Program (CAWEP). 1 As per the decision of the Program Advisory Committee in March 2019 the program name changed from formerly Central Asia Energy-Water 2 World Bank investments. Development Investments Program (CAEWDP) of other to Central development Asia partners Water and Energy are not Program 2 World Bank investments. Investments of other development partners are not considered (CAWEP). for this indicator. considered for this indicator. 2 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 FIGURE 1. CAWEP PILLAR AND could significantly contribute to increased agricultural COMPONENT STRUCTURE productivity, but also, renewable energy production and overall improvement of environmental assets. CAEWDP 3.0 Water Linkages Energy Recently, a new window of opportunity has opened for Security Security engagement in regional water dialogue among development partners and countries. In March 2018, the presidents of Data and Diagnostic Analyses Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan, and a high-level representative of Turkmenistan, had their first leaders’ summit in nearly a decade. The agreement Institutions, Capacity and Dialogue between Uzbekistan and the Kyrgyz Republic to develop hydropower on the Naryn river as well as the Uzbek President’s backing of the Rogun Dam and hydropower Supporting Investments project in Tajikistan are signs of a renewed political will for bilateral and multi-lateral engagement in the previously Program management much disputed water and energy security agenda. While national development shows some promising signs Regional Context of reform and relations between countries are getting better and the overall climate for cross-border dialogue is In Central Asia, water and energy systems are inextricably improving, countries are still far away from a shared vision intertwined, yet insufficiently coordinated. This dichotomy on how to achieve regional water and energy security. poses water-energy nexus challenges in the region. Capacity of regional institutions that are mandated on Multiple transboundary rivers, including the Amu Darya and paper to deal with these issues remains very low and the Syr Darya of the Aral Sea basin, connect the territories of institutional framework continues to be undermined by lack the Central Asian republics and Afghanistan. of trust. Despite being the only well-established regional institution with the objective to facilitate cooperation The Central Asian republics inherited complex irrigation towards sustainable environment, social and economic systems which span the post-Soviet borders as well as an development, the International Fund for Saving the Aral Sea intricate energy-for-water trading scheme which supplied (IFAS) has been unable to fulfill the interest of all member electricity generated from the downstream fossil energy countries and risks becoming obsolete. There is a common riches to the upstream countries during the cold winter understanding by Central Asian countries of the need for season, so that the latter would store and release water reforming the regional institutional framework; however, the for summer-irrigation needs in their reservoirs. The new countries are still cautious in changing the status quo and national borders continue to pose significant challenges to propose divergent approaches to solving common issues optimize asset operation. Most of the vast infrastructure based on their respective national interests. assets require rehabilitation; the systems need to be modernized to increase water productivity and energy Under the third phase, CAWEP is exploring avenues for efficiency, and the collapsed Central Asian power system supporting Central Asian future economic development needs to be re-established to support intra- and inter- in areas that are of interest for all beneficiary countries regional trade. (such as climate change, renewable energy, integrated water management, strengthening the capacity of national Achieving sustainable growth in Central Asia will depend institutions in water and energy management) while to a great extent on how effectively countries will manage promoting multi-country discussions and knowledge their natural resources, especially considering population exchange at different levels, including youth, technical- growth projections of an additional 30 percent by 2050. level experts, academia and decision-makers. CAWEP’s Central Asia is heavily dependent on agriculture, yet its work in this direction is closely linked to the Bank’s overall level of water productivity is one of the lowest in the engagement in the region and is well aligned with the Europe and Central Asia region. More efficient use of water Bank’s strategic vision for the water and energy sectors. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 3 Investment opportunities leveraged by the Bank and •• A major part of the CAWEP work program realization CAWEP are critical in the evolving climate and inherent for 2018 focused on the Energy Security Pillar challenges in the region. Capitalizing on the Bank’s activities. The program supported, among others, ongoing policy dialogue and position as a trusted neutral the diversification to renewable energy in Uzbekistan development partner for national governments, CAWEP through the activity Uzbekistan Small and Medium explores new opportunities for cross-border dialogue and Hydropower Development Program, assessment impactful activities that could reinforce country efforts of hydropower development in the Kyrgyz Republic towards achieving water and energy security. In turn, through the Integrated Hydropower Development in the analytical work and investment support under CAWEP helps Naryn River Basin activity, and broader measures to the Central Asian countries prioritize needs and investment strengthen financial standing and institutional capacity decisions. The Bank’s role and experience as a facilitator in Tajikistan through the Energy Sector Strengthening helps CAWEP strengthen its coordinating role among activity. development partners on water and energy issues. •• Capacity building and regional cooperation remains an integral part of the program. For example, under the Program Highlights for 2018 Energy Security Pillar, the program is strengthening the capacity of the regional dispatch center, Coordinating In 2018, the CAWEP Advisory Committee endorsed the Dispatch Center (CDC) Energia, and national dispatch Work Plan of sixteen activities: three activities under the centers of six beneficiary countries through knowledge Water Security Pillar, seven activities under the Energy exchange and is also laying a foundation for further Security Pillar, four activities under the Linkages Pillar, and professional development of technical dispatcher staff two activities to support overall program management on power system planning and operations. Regional and communications. In the third phase, the program is knowledge and professional capacity in the areas of building on the experience from the previous phases and is water resources management, energy and climate increasing the emphasis on national activities as building change in the Central Asia region is supported by the blocks for regional security. At the same time, regional Central Asia Knowledge Network (CAKN). dialogue processes at technical and policy-making level •• Regional and development partner dialogue is and capacity building continue to play an important role in promoted through the Facilitation of Regional Dialogue promoting regional cooperation and consultations among and Development Partnerships on Water & Energy the countries. Security in Central Asia activity. In the energy sector, the program continues its engagement in the Energy The program focused on the following areas in 2018: Sector Coordination Committee of the Central Asia Regional Economic Cooperation Program (CAREC) and •• Under the Water Security Pillar, the program continues facilitation of regional development partner dialogue to to support national processes for modernization of coordinate development finance support to the region. the water sector, in particular, relating to introducing Further opportunities for regional integration and and implementing IWRM as part of the ongoing water trade with neighboring counties are explored through reform in Tajikistan and the sub-basin development in the Central Asia Regional Electricity Trade and Market the Vakhsh Basin, a main tributary to the Amu Darya Development activity. River. CAWEP also contributes to the regional Study •• Strong interest from Afghanistan to connect more for Modernization of Irrigation in Central Asia, which closely with its Central Asian neighbors is supported analyzes the current status of the irrigation sector in through the Analysis of Synchronized Operation of Central Asia towards formulation of recommendations Afghanistan and Central Asia Power Systems and for enhanced sector performance. Going forward, Strengthening Capacity in Afghanistan for Greater engagement under the Water Security Pillar is expected Collaboration with Tajikistan on Hydromet, Flood Risk to expand to support regional initiatives in non- Management and Early Warning Services activities. controversial areas such as agricultural and irrigation modernization, disaster risk management, climate Key focus areas are shown in Figure 2. resilience, and others. 4 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 Program Administration and Pillar funding allocations for 2018 were: Water Security Disbursements (25 percent), Energy Security (42 percent), Water-Energy Linkages (20 percent), and program management and During the first year of implementation of the third phase communications (13 percent). The relatively large share of the program, good progress was made with respect of energy activities in the program’s portfolio in 2018 to program administration and disbursements. In 2018, reflects an increasing interest among the Central Asian the program allocated US$2.28 million to finance sixteen countries in regional power trade and development of activities in six beneficiary countries. Thirteen of the renewable energy, including hydropower. As for the country sixteen approved activities commenced implementation coverage, the program initiated nine regional activities by the end of the calendar year 2018. Disbursements with focus on capacity building and technical dialogue and exceeded US$0.7 million or 32 percent of the total four national activities. allocated funds. FIGURE 2. CAWEP KEY FOCUS AREAS IN 2018 REGIONAL WATER AND ENERGY SECURITY Modernization of Agriculture Improved Regional Water Management Sub-Basin Water Management Regional Coordination and Capacity Building National Energy Sector Capacity Regional Power Trade Hydropower Development CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 5 CHAPTER 1. REGIONAL AND COUNRY CONTEXT 6 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 2017 showed positive signs for regional integration among agreed to reconnect their power transmission networks the Central Asian countries, which continued in 2018. In as the first step toward resynchronizing the Tajikistan 2018, the Heads of State of the Central Asian countries transmission network with the Central Asian power system. met twice, advancing dialogue on regional cooperation on Furthermore, recent progress in development of both economy, trade, transport, scientific, technical, cultural and CASA-1000 Project and TUTAP Power Interconnection has humanitarian issues. The five Central Asian presidents increased market interest in trade and third-party electricity met for the first time in Nur-Sultan (formerly Astana), supply between Central and South Asian countries as well Kazakhstan in March 2018, resulting in a joint statement as with neighbors including China and Eurasia. for cooperation expressing “…desire for regional cooperation, mutual support and joint solutions to pressing The water-energy agenda received attention within this issues, in order to ensure the security, stability and broader cooperation dynamic; the Heads of State in their sustainable development of our entire region.” In August statement for the Nowruz meeting in March 2018 noted 2018, the Heads of State met for the second time under that “…the rational development of water, energy and food the IFAS umbrella in Ashgabat, Turkmenistan. potential… will contribute to the sustainable growth of the well-being of the people of Central Asia” acknowledging the This high-level agenda led to practical cooperation role of water and energy as key drivers for economic growth actions, notably for ensuring security and countering and social stability.3 In this context, individual countries cross-border challenges. New dialogue approaches and have put forward different ideas to strengthen water and models are being experimented with, in particular in energy development in the region: Kazakhstan suggested bilateral context. In November 2018, the first Uzbekistan- reviving the water-energy consortium initially developed and Kazakhstan Interregional Cooperation Forum was held in discussed among countries in early 2000’s; Turkmenistan Shymkent, Kazakhstan, marking a significant milestone proposed developing a regional water strategy; Uzbekistan in bilateral relations. Bilateral trade between the two sought to further develop the Multi-Partner Human Security countries increased by 47 percent in 2018 reaching Trust-Fund for the Aral Sea Region. US$3.02 billion. With respect to water-energy linkages, Uzbekistan and Kazakhstan have developed bilateral While improving connectivity and regional electricity market commissions for each of their transboundary basins development is becoming an important agenda for Central to manage operational issues and further effective Asia, there is no consensus on a common way forward on coordination. Tajikistan, Turkmenistan and Uzbekistan transboundary water management. Existing platforms that are approaching Afghanistan on a bilateral basis on have played an important convening role in the past such similar matters, with an increased understanding that as IFAS, have so far not been able to align the interests Afghanistan is an inherent part of Central Asia and a key of individual countries into a shared vision and plan for partner for economic integration and stability. action in this fast-evolving context for cooperation. The preparation process for the fourth Aral Sea Basin Program In the energy sector, the relaxation of regional tensions in (ASBP-4) did not involve all Central Asian countries. Central Asia is raising hopes and expectations for improved Further discussions, and coordination with development prospects for development of the regional electricity market partners, will help to take cooperation in the water and in Central Asia. Uzbekistan, for example, has resumed energy sectors to the next level. This can leverage efforts gas supply to Tajikistan and reportedly has expressed at various levels (e.g., bilateral, plurilateral, regional level) interest in developing hydropower in Tajikistan and the and involve various sectors and stakeholders to promote Kyrgyz Republic. Uzbekistan and Tajikistan have also an enabling environment for water and energy security. 3 While water generates about 22 percent of the region’s electricity supplies (more than 90 percent in both Tajikistan and Kyrgyz Republic), the agriculture sector contributes up to 20 percent to the GDP of some countries in the region and accounts for up to 50 percent of national labor force. 3 While water generates about 22 percent of the region’s electricity supplies (more than 90 percent in both Tajikistan and Kyrgyz Republic), the agriculture sector contributes up to 20 percent to the GDP of some countries in the region and accounts for up to 50 percent of national labor force. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 7 CHAPTER 2. PORTFOLIO AND PROGRAM ACTIVITY SUMMARY 8 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CAWEP Objective and Approach The detailed Results Framework for the program, including the specific indicators and target values to measure The Central Asia Water and Energy Program is implemented progress towards the above planned outcomes, is by the World Bank through a multi-donor trust fund. The third provided in Annex 2. The program continues to work with phase of the program commenced in January 2018 with development partners to deepen efforts to establish a US$3.5 million contribution from the SECO as a single the parameters for cooperation at the technical and financing partner. In August 2018, UK DFID re-joined the institutional levels, to strengthen availability of data program through a US$1 million contribution channeled and information, and to harmonize sectoral policies and through PACT for activities focusing on inter-regional trade regulations to facilitate cross-border connectivity and trade. with South Asia and energy sector activities in Afghanistan, Kyrgyz Republic, Tajikistan and Uzbekistan. The European Structured along three pillars: (1) Water Security; (2) Energy Union became the third financing partner in 2019 contributing Security, and (3) Water-Energy Linkages; the program €7 million for activities in the five Central Asian republics. pursues three components since its inception: (a) data and diagnostic analyses; (b) institutions, capacity and dialogue; The program development objective is to strengthen the and (c) supporting investments. The objective of the Water enabling environment to promote water and energy security at Security Pillar is to promote sustainable and efficient use regional level and in the beneficiary countries. The long-term of shared water resources and national IWRM through vision of the program is to promote sustainable development capacity building, institutional strengthening and investment and livelihood security within the region. As the program planning to achieve water security at the national, bi/multi- entered its third funding phase in 2018, the program added lateral and regional level. The Energy Security Pillar aims to Afghanistan as a sixth direct beneficiary country of CAWEP improve the security and economic efficiencies of energy funds. This formalizes the ongoing practice of Afghanistan’s supply at national, bi/multilateral and regional level. The participation in multiple CAWEP activities, in particularly those Water-Energy Linkages Pillar supports activities related focused on regional consultations. to the water-energy nexus at the national, bi/multi-lateral and regional level, climate-change related activities linking The program finances initiatives that support improvements two or more countries as well as regional and cross-border in water and energy management and development, dialogue processes. strengthen national and regional institutions and facilitate regional dialogue with a view to promoting water and energy security and helping to realize the benefits of regional cooperation to advance sustainable development Program Progress in 2018 and climate resilience. In 2018, CAWEP initiated thirteen activities in addition to By the end of December 2022, the program aims to have program management and communications. The breakdown contributed to the following: by pillars and components is in Table 1. Institutions and capacity building were a major focus area in 2018. Strong •• Improved policy frameworks that promote achievement institutions, capacity and coordination among different of water and energy security adopted at national level; stakeholders are an important pre-requisite for sustainable •• Promotion of a regional framework supporting water water and energy management at national and regional and/or energy security informed by the program; levels. Scoping and diagnostic studies help take stock •• Strengthened capacity in regional and national of the current situation, analyze constraints and barriers, institutions responsible for water and/or energy and determine and prioritize countries’ needs in capacity resources management in beneficiary countries; and building, technical assistance and investments. Based on •• Leveraged/informed US$2.5 billion (US$0.8 billion for such analysis, activities to identify investments and support the third phase) of investments4 contributing to water their preparation are initiated. and energy security at regional level and in beneficiary countries, including regional power trade. Given the far-reaching needs in the region to achieve water-energy security, CAWEP will not be able to address all needs. The program sets priorities based on client 4 World Bank investments. Investments of other development partners are not considered for this indicator. demand and taking advantage of the Bank’s existing CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 9 client and partner relationships and TABLE 1. CAWEP ACTIVITIES DURING 2018 engagements through investment Data and Institutions, Supporting Total projects, while keeping the objective Diagnostic Capacity Investments Building & to contributing towards regional- Dialogue and national-level water and energy Water Security Pillar 2 0 0 2 security. Figure 3 shows how activities under the three pillars fall under Energy Security Pillar 2 5 0 7 specific themes that contribute overall Water-Energy 1 3 0 4 towards achieving regional water and Linkages Pillar energy security. Total 5 8 0 13 FIGURE 3. CAWEP PATHWAYS TO REGIONAL WATER AND ENERGY SECURITY REGIONAL WATER AND ENERGY SECURITY Improved Water Regional Coordination and Regional Power Trade Management Capacity Building Modernization of Facilitation of Regional Dialogue Capacity Development for Regional Agriculture and Development Partnerships Cooperation in Power System on Water & Energy Security in Planning and Operations Sharing Information and Central Asia Exposure Visit to Pave the Way to Irrigation Modernization CAREC Energy Sector Coordination Central Asia Knowledge Network Sub-Basin Water Management Central Asia Regional Electricity Trade and Market Development Central Asia Water and Energy Data Platform Vakhsh Basin Needs Assessment Analysis of Synchronized Operation of AF and CA Power Systems Strengthening Capacity in Afghanistan for Greater Collaboration with Tajikistan on Hydromet, Flood Risk Hydropower Development Management and Early Warning Services UZ Small and Medium Hydropower Development Program KG Integrated Hydropower Development in the Naryn Basin National Energy Sector Capacity TJ Energy Sector Strengthening 10 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 The program development objective is to strengthen the enabling environment to promote water and energy security at regional level and in the beneficiary countries. The long-term vision of the program is to promote sustainable development and livelihood security within the region. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 11 Summary of Activities 2018 Basin occupies around 31,200 km2 and is a home to one eighth of the country’s population. The Vakhsh Integrated 1. Water Security Pillar River Basin Management financed by CAWEP is taking stock of the key water infrastructure assets and analyzing 1.1 Modernization of Agriculture institutional, infrastructure and information gaps to determine and prioritize investment needs. Agriculture is still a significant contributor to food security, poverty reduction and economic growth in Central Asian 2. Energy Security Pillar countries. The sector is heavily dependent on irrigation, which uses approximately 90 percent of all abstracted 2.1 Regional Power Trade water in the Aral Sea Basin. Climate change effects, especially, higher temperatures and more frequent and Recent improvements in geopolitical relations in Central longer heat waves, increase agricultural water demand Asia and progress in the implementation of the CASA-1000 during summer and increase the risk of droughts. The large project have increased interests of countries in expanding stock of irrigation infrastructure in the region continues opportunities for inter- and intra-regional electricity trade. to deteriorate because of inadequate management, and The study on Enhancing Regional Power Trade in Central insufficient operation and maintenance funding. Coupled Asia5 financed by CAWEP in the program’s second phase with weak irrigation management institutions, this results estimated unrealized benefits due to the limited regional in high water loses in the systems, low water use efficiency, power trade in Central Asia to be around US$5.2 billion in unsustainably high electricity consumption, unsatisfactory the period 2010-2014. services to farmers, and low yields. In the first year of implementation of its third phase, The activity Sharing Information and Exposure Visit to Pave the program continued fostering joint and coordinated the Way to Irrigation Modernization was established late in approaches to regional electricity trade and market 2018 and will commence implementation in 2019. development through the CAREC Energy Sector Coordination. The activity provides a platform for 1.2 Sub-Basin Water Management connecting the countries with development partners in a coherent way. In addition, three energy activities Central Asian countries are looking to integrated water were initiated under CAWEP: (i) the Central Asia Regional resources management as a means to increase water Electricity Trade and Market assessment, which is being security. In Tajikistan, the government initiated a water coordinated with the USAID’s regional initiative - the Central sector reform in 2014 focused on introduction of IWRM by Asia Regional Electricity Market (CAREM); (ii) renewable mandating the establishment of river basin management energy development support activities in the region; and organizations along hydrologic boundaries. The Ministry (iii) support by CAWEP to develop institutional capacity of Energy and Water Resources, established in 2015, was of the regional electricity dispatch center CDC Energia assigned to lead the reform efforts in the sector guided which is coordinated with USAID support to the same by the Water Sector Reform Program 2016-2025. The organization. Program divides the country into five major river basins - Syr-Darya, Zarafshon, Kofarnihon, Vakhsh, and Panj, and The need to coordinate the power systems goes beyond identifies the main challenges in the water sector and key the five Central Asian republics. Afghanistan is increasingly reforms to address them in line with the internationally interested in synchronization of its power system with the recognized principles of sustainable water resource regional Central Asia power system. Afghanistan’s power management. Supported by donors, several activities are system is highly fragmented, consisting of numerous currently underway to develop River Basin Councils and isolated grids operating in asynchronous mode, which River Basin Organizations in designated river basins across limits the opportunities to improve security of supply, Tajikistan. Although the Government is committed to optimize dispatch, enable spinning reserve and expand shifting towards IWRM in the Vakhsh Basin as well, there is the power network in a rational way. The activity Analysis currently limited funding available. The Vakhsh of Synchronized Operation of Afghanistan and Central Asia 5 Myroshnychenko, Yuriy; Owen, Kirby. 2016. Enhancing regional power trade in 5 Myroshnychenko, Yuriy; Owen, Kirby. 2016. Enhancing regional power trade in Central Asia (English). Washington, D.C.: World Bank Group. http://documents.worldbank. org/curated/en/672501486549955103/Enhancingregional-power-trade-in-Central-Asia 12 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 Power Systems is developing key elements of a roadmap losing out on. Following the agreement between Uzbek for the synchronization of both systems and helping to and Kyrgyz presidents on joint construction of hydropower strengthen the capacity of Da Afghanistan Bresha Sherkat plants (HPPs) and management of transboundary (DABS), a national power utility, to manage the grid water resources, a memorandum on cooperation in the synchronization process. This activity will also facilitate construction of Kambarata HPP-1 on the Naryn River, a consultations between Afghanistan DABS with CDC Energia tributary of the Syr Darya, was signed in October 2017 by and Central Asian NDCs. the national energy companies. Central Asia Regional Electricity Trade and Market activity is In 2018, two studies were initiated under CAWEP on assessing regional and national barriers for regional energy hydropower assessment: in the Kyrgyz Republic and trade and will develop options for transitioning toward a Uzbekistan. competitive and efficient regional electricity market and trade. This will help develop a clear picture of potential and The Kyrgyz power sector is dominated by hydropower realistic opportunities for energy trade in the region. and highly susceptible to variations in hydrology. The country has abundant hydropower resources, which cater The role of CDC Energia in the coordination of the power for over 90 percent of domestic energy needs with the system planning and operational activities at the regional installed capacity of HPPs of approximately 3,100 MW. level is expected to increase in the coming years. The The total generation of large HPPs is produced at the Capacity Development for Regional Cooperation in Power Naryn Cascade, with the balance provided by thermal System Planning and Operations activity is strengthening power from Bishkek and Osh Combined Heat and Power the institutional capability of CDC Energia and National plants. The share of generation from HPPs in the Kyrgyz Dispatch Centers (NDCs) and identified a long-term Republic is greatest during summer months due to higher capacity development plan to enhance CDC Energia’s inflows, lower domestic demand and water releases from capacity. It will also directly support CDC Energia and the Toktogul Reservoir to fulfill irrigation agreements with NDCs to understand the benefits of regional coordination, neighboring countries, thus enabling higher electricity develop common operational rules and procedures, and output from the Naryn Cascade. The sustainable implement coordinated operations. development of hydropower in the country will require establishing an enabling country framework, including 2.2. Hydropower Development policy and regulatory reform and fiscally viable financing schemes. The activity Integrated Hydropower Development Hydropower is a vital renewable energy resource. As the in the Naryn Basin is supporting the government of the world’s largest affordable renewable electricity source, Kyrgyz Republic in its efforts to pursue sustainable hydropower currently accounts for about 18 percent of the hydropower to meet growing domestic demand as well total world electricity supply. Hydropower offers potential as to increase opportunities of Kyrgyz electricity exports multiple co-benefits to regional development in the face to Central Asia and beyond the CASA-1000 transmission of emerging climate risks including drought preparedness, corridor. The activity is assessing in more detail the flood control, water storage for drinking and irrigation options for hydropower development, a river basin-wide purposes, aquaculture providing economic opportunities approach, and is developing a roadmap. The development and livelihoods for local population. If the countries of hydropower in the Kyrgyz Republic would help close the operated together, they could have saved more than an electricity supply gap in winter, increase export revenues estimated US$ 80 million annually, or US$ 400 million and provide clean electricity to neighboring countries. during the period from 2010-20146, by sharing the regional hydro resources to provide operating reserves, instead In Uzbekistan, the government has started exploring of purchasing reserves at current market prices from alternative sources of energy and put a priority on outside sources. Several bilateral agreements reached hydropower development adopting the “Program on by Central Asian countries over the last two years on Development of Hydropower Sector for 2017-2021.” The strengthening cooperation in hydropower signal their program envisages the construction of 42 greenfield sites understanding of the substantial benefits they are currently and modernization of 32 small and medium hydropower 6 Ibid. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 13 plants. In May 2017, the government established effective cooperation on water, energy and environment. It Uzbekhydroenergo JSC and transferred 32 HPPs to its was intended that the Central Asia Water Strategy should management. Uzbekhydroenergo was given a mandate provide for the transition to integrated water resources to implement hydropower development programs aimed management at the interstate and national levels, at maximizing the use of hydropower potential and including water quality management, water conservation increasing the share of hydropower in the energy mix as the main development element, the creation of a of the country. Further on September 14, 2017, the joint water use planning mechanism, the development government adopted a micro hydropower pilot program, of preventive measures at the intersection of interstate stipulating the construction of 40 pilot micro hydropower and interdisciplinary interests to prevent the emergence projects of 10-590 kW. The Uzbekistan Small and Medium of conflict situations, and measures to adapt to climate Hydropower Development Program activity will strengthen change. However, the proposal to develop a Central Asia the capacity of Uzbekhydroenergo through workshops Water Strategy under the Turkmen chairmanship of EC-IFAS and knowledge exchange and preparation of a long-term was not approved by the other member countries of the capacity development action plan. Moreover, the activity is institution. To review alternative inroads for engagement supporting the government’s hydropower pilot development at the regional level, a literature review on strengthening by providing the key framework documents for small and the IFAS framework was developed based on previous and medium hydropower pilots such as the methodology of on-going works from other partners. Taking advantage of feasibility studies, pilot project concept and financial the positive dynamic for inter-state discussions, CAWEP models. is advocating effective development partners coordination in partnership with the Swiss Agency for Development 2.3 National Energy Sector Capacity and Cooperation (SDC). For this purpose, eight donor coordination meetings were organized and co-hosted by In Tajikistan, the Tajikistan Energy Sector Strengthening various development partners (e.g. GIZ, SDC, UNESCO, activity is supporting broader measures of the government EU, UNRCCA) in 2018. In particular, the Water Partner to strengthen the financial standing and institutional Coordination group decided to undertake a review of the capacity of Barki Tojik, a state-owned power sector academia curricula for water resources management company, and contributing to increased energy trade – one in Central Asia to be supported by CAWEP . The review of the key pillars of the Tajikistan National Development consulted with universities and research institutions Strategy 2016-2030. The activity helps Tajikistan to throughout the region and preliminary results were reconnect to the Central Asia power system through discussed in a meeting organized in Almaty as part of the support to the development of regulatory frameworks, CAKN activity. including pricing of energy, and structuring of power purchase agreements required for increased power trade. The program is also promoting bilateral dialogue. For example, the Strengthening Capacity in Afghanistan for 3. Water-Energy Linkages Pillar Greater Collaboration with Tajikistan on Hydromet, Flood Risk Management and Early Warning Services activity will 3.1 Regional Coordination and Capacity Building address the need for increased and improved collaboration between Tajikistan and Afghanistan promoting bilateral CAWEP contributes to building a regional vision for dialogue on flood management and early warning. Flooding water and energy in the Central Asian region, through is one of the major causes of economic damage in these the Facilitation of Regional Dialogue and Development countries, as well as causing damage to downstream Partnerships on Water & Energy Security in Central Asia countries. Establishing accurate and timely climate and activity. The activity explores possibilities to strengthen the hydromet early warning information services is urgently existing framework for regional cooperation, in particular needed to minimize human and economic losses to through the IFAS umbrella. In this regard, a draft note for such disasters. This activity is identifying priority areas the Central Asia Water Strategy has been developed and for cooperation between two countries to address the been circulated across the five Central Asian countries. As challenge of compatibility of data. chair of the EC-IFAS, Turkmenistan suggested this initiative, advocating a regional consensus based on accepted With the objective to introduce new technologies to principles for political and diplomatic cooperation for an increase awareness on accessibility, availability and 14 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 applicability of publicly available spatial data, the Central Middle East and North Africa region. A workshop was Asia Water and Energy Data Platform activity provides organized in December 2018 to evaluate the results of access to an interactive portal gathering multi-sectoral the ongoing national assessments of water management and spatial, temporal data from various national and academic curricula. The workshop brought together international sources. The portal draws on existing water representatives from Kazakhstan, Kyrgyz Republic, and energy studies focusing on Central Asia, providing an Tajikistan, and Uzbekistan in Almaty to share lesson interactive way to present various project’s activities and plans and course materials. Participants concluded results. The Central Asia Water and Energy Data Portal is that Central Asian academic institutions significantly available in both English and Russian at: differ in their training programs and agreed that it is http://spatialagent.org/CentralAsia/. necessary to increase experience, curricula, and teaching materials exchange and provide contemporary training Finally, the CAWEP-financed Central Asia Knowledge materials for the instructors and their students. Also, Network has continued its activities in 2018 through national assessments of water management curricula the organization of various events. On June 19, 2018, have been undertaken in parallel with the World Bank’s CAKN supported the organization of a side-event at the initiative, implemented by the Kazakh-German University, International Decade for Action in Dushanbe: Water for to map water, energy, and academic knowledge sharing Sustainable Development 2018-2028, bringing together activities. The final results of both assessments provide young water professionals across the region. The Center recommendations to enhance water management curricula for Mediterranean Integration was convened to share in Central Asian universities. experience on youth and knowledge development in the CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 15 CHAPTER 3. TRUST FUND MANAGEMENT AND FINANCIAL OVERVIEW 16 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 Program Administration Partner Engagement The core team responsible for the management of the The program held two meetings: the Advisory Committee program includes the Program Manager, three Pillar meeting on January 19, 2018 and a mid-year check- Leaders, Field-based Liaison Officer, Communications in meeting on August 22, 2018. At the January 2018 Consultant, and Senior Program Assistant (see Figure 4). meeting hosted by SECO in Bern, Switzerland, the first The Pillar Leaders provide advice on strategic direction Annual Work Plan, which proposed 12 activities, was for the work program, monitoring of pillar implementation discussed and endorsed. Much of the discussion was progress and liaison with task team leaders to ensure about potential engagement of other donors, field presence timely and qualitative delivery of activities. In July 2018, and implementation of the program. The meeting also the composition and regional presence of the core team approved the Monitoring & Evaluation and Communication was strengthened by assignment of two Pillar Leaders Strategies. The mid-year check-in meeting in August based in the Central Asian region. The Field-based Liaison 2018 announced strengthening of field presence of the Officer is responsible for monitoring and evaluation, core team. The Annual Work Plan was complemented by program coordination with task team leaders and overall four new activities, reaching a total of sixteen approved support to the program management. An operational activities. The August meeting further confirmed the manual was developed for the task teams and published US$1 million contribution by DFID to the Energy Security on an internal website. Pillar and a pro rata share to program management and communications through PACT, which covers Afghanistan, Kyrgyz Republic, Tajikistan, and Uzbekistan as beneficiary countries. The implementation period of PACT is August 1, 2018-March 31, 2022. FIGURE 4. CAWEP GOVERNANCE STRUCTURE Advisory Committee Management Team Program Manager Field-based Liaison Officer Water Security Linkages Security Energy Security Pillar Leader Pillar Leader Pillar Leader CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 17 Communication, Donor Outreach Financial Overview and Donor Engagement The total program funding in 2018 was around US$4.8 million8. The Communication Strategy for the new phase of the By November 30, 2018, SECO had transferred US$3.5 million program was developed in 2017 and submitted to the into the CAWEP multi-donor trust fund. US$1 million has Advisory Committee in January 2018. The Communication been reserved in a dedicated window under the program Strategy determined the objective and target audience of for PACT for financing of the energy activities. By the end the program and its communication activities, a proposed of December 2018, around US$2.28 million or list of outputs including communication and dissemination 47 percent of total funds were allocated to sixteen activities, tools to be used. including program administration and communications. The 2017 Annual Report was published, translated into Pillar funding allocations for 2018 were: Water Security Russian, and uploaded on the program external website7. (25 percent), Energy Security (42 percent), Water-Energy The team produced four quarterly newsletters highlighting Linkages (20 percent), and program management and events and achievements of the program. The quarterly communications (13 percent). (See Figure 5). A higher newsletters are distributed to CAWEP development share of energy activities in the overall program structure partners. The team carried out media monitoring on water reflects an increased interest of Central Asian countries and energy developments in the regions and circulated and Afghanistan in regional connectivity and power trade. bi-monthly digests among the task team leaders and all CAWEP development partners. Disbursements exceeded US$0.7 million or 32 percent of the total allocated funds. Higher disbursements are expected for 2019 when proposed activities will be implemented at faster speed; the first half of 2018 was spent primarily on identification and design of activities FIGURE 5. PROPORTION OF PROGRAM initiated during the calendar year. This is illustrated in ALLOCATION BY PILLAR IN 2018 Figure 6, which shows monthly disbursements in 2018. FIGURE 6. CAWEP DISBURSEMENTS 20% 25% (US$) IN 2018 800,000 CAWEP 13% 700,000 PACT 600,000 500,000 US$ 42% 400,000 300,000 200,000 Water Security Water-Energy Linkages Energy Security Program Management 100,000 and Communications 0 J n Feb M r Apr M Jun Jul Au Sep Oct Nov Dec 7 http://documents.worldbank.org/curated/en/994621542395781844/Central-Asia-Energy-Water-Development-Program-Annual-Report-2017 8 This includes SECO (US$3.5 million) and PACT (US$1 million) contributions, 7 http://documents.worldbank.org/curated/en/994621542395781844/ 8 remaining This includes SECO (US$3.5 million) and PACT (US$1 million) contributions, remaining funds funds under under the the second second phase phase of the of the Program Program (US$245,682) (US$245,682) and and investment Central-Asia-Energy-Water-Development-Program-Annual-Report-2017 income in 2018 (US$50,218). investment income in 2018 (US$50,218). 18 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 Looking Forward Peace) as well as with other development partners in order to identify development opportunities in consultation With the EU joining as financing partner in 2019, the with the beneficiary countries. The aim is to identify the third phase of CAWEP will move forward the realization most relevant and beneficial cooperation opportunities for of the latest endorsed work program. The first tranche long-term water and energy security. of the EU contribution of €7million will become available in 2019. This increase in available funds will enable the The scope of each of the currently planned activities and program to initiate additional confidence-building and their broad forward plans are provided in Annex 1. In 2019, non-controversial engagements at regional level under the some changes are anticipated to Trust Fund management Water Security Pillar. It is expected that the overall regional and the composition of the core team, with a transition to engagement will expand. Concerted efforts of the program a new Program Manager and in response to an internal development partners will be undertaken to coordinate realignment of the Global Practices within the World Bank. with the ongoing programs in the region (e.g. Nexus, Blue CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 19 ANNEX 1. PROGRAM ACTIVITY DETAILS WATER SECURITY PILLAR Sub-Basin Water Management Modernization of Agriculture Vakhsh Integrated River Basin Management Sharing Information and Exposure Visit to Activity Status: Ongoing Pave the Way to Irrigation Modernization CAWEP grant: US$375,000 TTL: Farzona Mukhitdinova Activity Status: Ongoing Implementation period: February 2018 – July 2019 CAWEP grant: US$100,000 (potentially to be extended to cover the Upper Vakhsh TTL: Kazuhiro Yoshida River Basin) Implementation period: January 2019 – June 2020 The objective of this activity is to provide a basin needs The development objective of this activity is to support assessment and inventory of key water infrastructure governments in Central Asia on modernization, through assets to determine the investment and technical early exposure, learning and adoption of sub-system and assistance needed for integrated basin management in on-farm modernization concepts in irrigation. This will the Lower Vakhsh River Basin. The study will establish contribute to strengthening the enabling environment for a minimum systematic infrastructural and institutional promotion of water security. The activity complements assessment platform from which the institutionalizing of the Bank-financed analytical work Exposure and Practical IWRM and the furthering of water sector development in In-Roads to Modernizing Irrigation in Central Asia, which the basin can be advanced. The needs assessment will focuses on stocktaking of current irrigation development in lead to preparation of the first strategic action plan in Central Asia. consultation with the government that will contribute to formulation of an effective institutional framework for IWRM The findings and recommendations of the analysis and and define preliminary scope and priorities of needed international experience in irrigation will be shared with the investments (institutional, technical and infrastructural), governments at a regional workshop in 2019 with CAWEP to support IWRM and sector strengthening in the Lower support. The workshop will include presentation and Vakhsh Basin. The activity will help the Ministry of Energy discussion of current irrigation development in Central Asia and Water Resources of Tajikistan in their dialogue with and recommendations on the way forward, a field trip and development partners to mobilize development funding for training on the use of diagnostic tools. The target audience identified priority development investments. At the same is senior decision-makers of Central Asian countries. It is time, this activity will start systematic and comprehensive expected that the regional workshop will agree on priority identification, quantification and characterization of the actions for each country to facilitate improvements of Lower Vakhsh Basin water sector infrastructure systems service delivery. The need of national workshops is to be and institutional entities, for eventual incorporation confirmed with the governments. of findings into basin-wide inventory databases and geospatial reference systems. It is likely that the needs assessment will extend to the Upper Vakhsh River Basin as development partners are increasingly interested in financing development tin the basin. 20 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 FIGURE 7. AMU DARYA RIVER BASIN AND VAKHSH RIVER BASIN North Aral Sea Engagement abstractions for irrigation, domestic, industrial and other water users, including environmental flow requirements; Activity Status: Proposed water losses and spills (particularly to Arnasai system CAWEP grant: US$100,000 in Uzbekistan); drainage return flows; river conveyance capacities at different sections; catchments area TTL: Bakyt Arystanov, Azad Abdulhamid, Gayane Minasyan characteristics; precipitation intensity, ice formation and Implementation period: October 2019 – December 2020 flood discharges; water intake/level/release of reservoirs, lakes systems and the North Aral Sea. The objective of this activity is to carry out technical studies on North Aral Sea water management options to inform an The team is discussing the specific scope of work with integrated development plan that optimizes water resource the Committee for Water Resources under the Ministry of use sustainably for regional investment planning and Agriculture of Kazakhstan. Technical studies will contribute broader regional dialogue. The studies will include detailed to the preparation of the Aral Sea Development and hydrological study of Syr Darya River Basin in Kazakhstan, Revitalization Project, which aims to restore ecosystems of involving historical and current information on river flows; the Aral Sea and its delta and associated rural livelihoods. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 21 ENERGY SECURITY PILLAR Capacity Development for Regional Cooperation in Power System Planning and Regional Power Trade Operations CAREC Energy Sector Coordination Activity status: Ongoing CAWEP grant: US$150,000 Activity status: Ongoing TTL: Koji Nishida CAWEP grant: US$100,000 Implementation period: April 2018 – November 2019 TTL: Mitsunori Motohashi Implementation period: March 2018 – December 2020 The objective of this activity is to improve the organizational capacity of CDC Energia to conduct its planning and This activity was launched in 2014 in the second phase of operational functions for the regional transmission system the program. It undertook analytical studies and discussed in Central Asia. The activity will also support NDCs to countries’ demand for investment and capacity building. understand the benefits of regional coordination and Its objective is to enhance energy sector dialogue among develop common operational rules/procedures. NDCs Central Asian countries and neighboring countries and to targeted in this activity include KEGOC (KZ), NESK (KG), ensure coordination of donor assistance to the energy Barki Tojik (TJ), Kuvvat (TM), Uzbekenergo11 (UZ), and sector in Central Asia through participation in the CAREC DABS (AFG). Specifically, the activity is developing a long- meetings. CAREC Energy Sector Coordinating Committee term capacity development plan and providing training (ESCC) meetings are an important platform to share opportunities to the personnel in CDC Energia and in its international best practices, discuss challenges, present affiliated NDCs. new ideas and initiate regional activities in consultation with energy sector policy-makers and technical experts from CDC plays a critical role in Central Asia for regional Central Asian countries and Afghanistan. coordination on the planning and operational activities, while NDCs implement coordinated operations. CDC was In 2018, this activity resulted in collaborative initiatives founded in 1998 in Tashkent, Uzbekistan, by five Central with development partners, including (i) the Central Asia Asian countries following signing of the “Agreement on Regional Electricity Trade and Market, a regional energy Parallel (Joint) Operations of the Power Systems of the advisory services and analytics activity partly financed Republic of Kazakhstan, the Kyrgyz Republic, the Republic by PACT, coordinated with the USAID regional initiative - of Tajikistan, Turkmenistan, and Republic of Uzbekistan.” CAREM; (ii) joint support9 to develop institutional capacity Financing of CDC Energia is on cost sharing basis. of the CDC Energia, the regional electricity dispatch center, which is being implemented in close coordination with By the end of December 2018, the technical assistance development partners and the Central Asian countries; and assessed organizational needs of CDC Energia for capacity (iii) coordinated approach to renewable energy development development and trainings, identified potential areas for support in the Central Asia region10. These activities are improvements and developed an initial plan. The plan expected to help strengthen the capacity in regional and includes: (i) analysis of CDC Energia’s main functions national energy management in beneficiary institutions. and responsibilities; (ii) assessment of CDC Energia’s training needs; (iii) summary and feedback of the first In 2018, the activity contributed to: (i) the inauguration on training workshop and study tour; (iv) lessons learned for February 23, 2018 of the Turkmenistan-Afghanistan-Pakistan- organization of next training workshops; (v) preliminary India (TAPI) gas pipeline and other cross-border regional agenda for the second training workshop; and (vi) general infrastructure projects in Turkmenistan; and (ii) the CAREC assessment on training facility/equipment. ESCC meetings in Ashgabat in March and September 2018. The activity is implemented in parallel with technical assistance from USAID, which provides training equipment 9 9 Financed Financed by CAWEP and by CAWEP and USAID USAID 10 10 CAWEP is CAWEP supportinghydropower is supporting hydropower development development assessments assessments in in the the Kyrgyz Kyrgyz Republic and Uzbekistan. 11 In 2019, and Republic Uzbekistan. Uzbekenergo was restructured into three organizations. 11 In 2019, Uzbekenergo was restructured into three organizations. 22 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 and software tools for power system analysis. Based on the In the second phase, the legal and institutional framework needs, USAID has procured the required training equipment. for the electricity sectors of targeted countries will be reviewed, potential barriers for the expansion of cross- The assessment helped the team design tailored training border trade and regional electricity market development programs to improve planning and day-to-day operations will be identified, recommendations for progressive of the regional power system. The first training workshop harmonization of electricity trade regulations will be (September 17-19, 2018 in Tashkent, Uzbekistan) was provided. attended by key dispatch center experts. The CDC Energia proposal to establish a power system operations training Activity missions were conducted in Uzbekistan (November hub within CDC Energia was unanimously supported by all 2018), Kazakhstan (December 2018) and Tajikistan dispatch center directors. The training was followed by a (January 2019) to launch the activity. In the first months study tour to SO/UPS JSC’s training and dispatch centers of implementation, considerable progress was made on in Moscow. In 2019, the activity will continue implementing data collection and verification. System planning model training programs and development of a long-term capacity simulations will assess opportunities for regional electricity development plan for CDC Energia. trade and consequential economic benefits. These analyses will be shared with countries and will inform any Central Asia Regional Electricity Trade and new development financing for transmission cross-border Market interconnection and network transmission upgrades that support higher level of regional electricity trade. Activity status: ongoing CAWEP grant through PACT: US$150,000 The team is coordinating its efforts with the USAID team managing the CAREM initiative on regional system TTL: Husam Mohamed Beides modelling for CAPS and regional electricity market design. Implementation period: October 2018 – July 2020 Analysis of Synchronized Operation of The objective of the activity is to assess the opportunities Afghanistan and Central Asia Power Systems for regional energy integration and trade in Central Asia region and with neighboring countries (in particular South Activity Status: Ongoing Asian countries) and to develop options for enhancing CAWEP grant: US$100,000 regional electricity market integration. TTL: Hung Tan Tran Implementation period: March 2019 – December 2020 The activity is being implemented in a phased approach. In the first phase, the focus is on assessment of the potential of electricity trade within Central Asian countries This activity was requested by the Ministry of Energy and and with Pakistan and Afghanistan and other neighboring Water of the Islamic Republic of Afghanistan in January countries. The assessment will use the Electricity Planning 2018. Afghanistan’s power system is highly fragmented, Model (EPM)12 developed in FY18 by the World Bank. consisting of numerous isolated grids supplied by The activity will revise and update the EPM with energy different power system (including the 80 percent of demand/supply projections and generation expansion electricity Afghanistan receives from abroad). These for the region to 2030. It will aslo carry out economic islands are operated in asynchronous mode, which limits and benefit analyses of identified potential of electricity the opportunities to improve security of supply, optimize trade; identify transmission interconnection upgrades dispatch, enable spinning reserve and expand the power and potential new cross-border transmission projects and network in a rational way. The objective of this activity is to undertake technical and strategic consultation with energy develop key elements of a roadmap for the synchronization stakeholders in the region. of the Afghan Power System with CAPS. The activity will help strengthen the capacity of Afghanistan DABS to 12 The model optimizes generation capacity expansion over 2017-2030 for the manage grid synchronization process. interconnected system of seven countries (five countries in Central Asia and Afghanistan and Pakistan in South Asia) to find the least-cost generation capacity and dispatch options over this period, for a range of scenarios. 12 The model optimizes generation capacity expansion over 2017-2030 for the interconnected system of seven countries (five countries in Central Asia and Afghanistan and Pakistan in South Asia) to find the least-cost generation capacity and dispatch options over this period, for a range of scenarios. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 23 The activity is structured around two components: The activity is progressing well but faced initial delays (i) development of a draft grid integration roadmap; because of lengthy and comprehensive discussions and (ii) facilitation of synchronization dialogue between on the terms of reference for the assignment with Afghanistan and Central Asia. Under the first component, Uzbekhydroenergo, and subsequent consultant selection. the technical, operational, and legal requirements for Afghanistan’s integration in the CAPS will be explored. Integrated Hydropower Development in the Requirements for synchronous operation of systems Naryn Basin including investments, legal and institutional changes will be identified and costed. A timetable for implementation Activity Status: Ongoing will be prepared. Under the second component, two CAWEP grant: US$200,000 regional workshops will be held as well as discussions TTL: Husam Mohamed Beides with the Central Asia Dispatching Center. Synergies with Implementation period: October 2018 – May 2020 the CAWEP-financed Capacity Development for Regional Cooperation in Power System Planning and Operations activity will be used to minimize cost and potential overlap. This activity aims to support the government of the Kyrgyz Republic in its efforts to pursue sustainable hydropower Hydropower Development development. The objective is to develop a well sequenced roadmap for hydropower development in the Naryn River Uzbekistan Small and Medium Hydropower Basin aligned with national development goals and Development Program international best practice. Activity Status: Ongoing The activity will be implemented in two phases: CAWEP grant: US$200,000 •• Phase I: desk review of Naryn River Basin development TTL: Mitsunori Motohashi opportunities to identify project preparation and Implementation period: May 2018 – December 2019 regulatory framework gaps; and •• Phase II: development of a roadmap for an integrated The activity aims to strengthen the capacity of hydropower in the Naryn River Basin including required Uzbekhydroenergo on hydropower development and energy sector regulatory, institutional and pricing provide training and knowledge sharing opportunities reforms to facilitate public and private financing of on international good practices in hydropower sector. hydropower projects. Phase II will assess options for The activity targets Uzbekhydroenergo as its primary construction of hydropower plants in the Naryn Basin, beneficiary as well as sectorial design institutes. The using a river basin-wide approach with an in-depth technical assistance will: (i) develop an action plan evaluation of both previously and newly identified for Uzbekhydroenergo’s capacity development, as well development sites. The main purpose of Phase II will as its regulatory and financing framework; (ii) develop be to identify technically, financially and economically a methodology for designing feasibility studies for viable sites for construction of new HPPs that will hydropower projects; (iii) develop project concepts and complement the power plants currently in operation, financial models for small and medium hydropower pilots; while enabling optimal multi-use of water resources. (iv) conduct knowledge sharing workshops and study tours on regional hydropower development, modern practice The analysis of hydropower development opportunities in design, construction, maintenance, and operation of in the upper Naryn Basin is coordinated with other hydropower facilities, as well as introduction of advanced development partners of the Kyrgyz government, in technologies in the sector. particular, the Asian Development Bank. Regular meetings with ADB will ensure alignment between activities and ensure the Naryn River Basin study provides input into the ADB-led sector master plan. 24 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 National Energy Sector Capacity WATER-ENERGY LINKAGES PILLAR Tajikistan Energy Sector Strengthening Regional Coordination and Capacity Building Activity Status: Ongoing CAWEP grant: US$100,000 Facilitation of Regional Dialogue and Development Partnerships on Water & Energy TTL: Arthur Kochnakyan Security in Central Asia Implementation period: November 2018 – December 2019 Activity Status: Ongoing CAWEP grant: US$150,000 The objective of this activity is to inform the design of TTL: Christina Leb measures that improve financial and operational performance Implementation period: March 2018 – May 2022 of Barki Tojik (BT) and remove obstacles to expanded regional power trade. It supports broader measures of the government to strengthen the financial standing and institutional capacity The objective of this activity is to strengthen institutional of BT, a state-owned power sector company. The activity has capacity for the development of a long-term vision for regional helped: (i) advance diagnostic analysis on the needed energy water and energy security in Central Asia, and to enhance investment to improve the sector financial viability, (ii) directly development partnerships supporting investments in this contribute to the design and preparation of the results-based area. The activity consists of two complementary components investment operation Power Utility Financial Recovery Project that contribute to building a regional vision for water and (Program for Results), and (iii) leverage development partners energy in the Central Asian region focusing on (1) the regional co-financing to support strengthening financial standing and institutions and (2) coordination among partners. institutional capacity. Under the first component, work has mainly focused on The following activities have been conducted in close producing draft papers on shared long-term vision. At cooperation with relevant government stakeholders: the initiative and request of the EC-IFAS chairmanship in a diagnostic financial analysis of BT; development of Turkmenistan and closely working with their technical staff, recommendations to improve operational efficiency of BT; a draft concept note for the Central Asia Water Strategy development of a financial model of BT; social impact has been developed in cooperation with EC-IFAS delegates. analyses of proposed operational and financial recovery While the activity provided support to EC-IFAS to develop improvements. An expenditure program for maintenance a common vision for regional water in Central Asia and of assets for a Program for Results and a report with the Aral Sea Basin Plan 4 and the Regional Environmental recommendations on improvement of power purchase Action Plan with the facilitation of working group meetings, agreements have also been prepared. it became clear that alternative ways to bring countries together need to be pursued going forward due to legacy Ongoing are a review of corporate governance structures, trust issues. The activity also provided support to other legal and regulatory barriers to expanding power trade IFAS institutions by facilitating video-conferences for the with neighboring countries; support for drafting regulatory Interstate Commission for Sustainable Development as documents required for implementation of financial and part of the development of the Regional Environment operational reforms and expansion of regional power trade Action Plan for Sustainable Development which helped in within Central Asia. outlining national priorities to be included in the action plan. Similar events will be organized in 2019, in support The activity will strengthen the legal and governance capacity of the Aral Sea Basin Development Plan 4. of BT and inform the Program for Results. The proposed program will have disbursement-linked indicators structured As for coordination among development partners, regular around the key policy and institutional reforms and will partner coordination meetings are an important step incentivize sector reforms. This operation will improve towards fostering a common understanding on regional operational efficiency, financial sustainability, and corporate water management and required interventions among governance of BT to foster deeper regional cooperation. partners, to have clarity of donor support, avoid duplication CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 25 and ensure complementarity. These meetings are evolving education, training and research sector among major towards increasing coordination on substance as the stakeholders from water, energy and academic communities. discussions go along and partners are getting better This assessment will guide development of state-of-art new acquainted with their respective portfolios. The activity curricula in IWRM, and support research, students/trainers significantly contributed to increased donor coordination on exchanges, joint programs, and regional Master of Arts regional water at the operational level (five meetings) as program development. well as at higher management level (one High-level Donor Meeting). The donor coordination helps ensure effective The activity is structured around the following levels. use of available development partner resources - to avoid duplication and promote complementarity in funding •• National, focused on strengthening national sectoral initiatives, and to speak with a common voice or reinforce and cross-sectoral capabilities with the focus on each other’s advice to countries on regional and national preparation of regular analytics and Cross-Sectoral water and energy development for a water and energy Working Groups practical involvement in Bank-financed secure Central Asia 2050. project implementation activities, development of practical outputs (databases, methodologies, practical Central Asia Knowledge Network guides), support in creating new national Cross-Sectoral Working Groups in Uzbekistan, Tajikistan/ Afghanistan, Activity Status: Ongoing cross-country knowledge exchange workshop on Cross- CAWEP grant: US$150,000 Sectoral Working Group best practices; •• Regional, focused on enabling deeper regional TTL: Julia Komagaeva cooperation aimed at attracting CAKN members to Implementation period: July 2019 – December 2020 participate in national and regional policy dialogue and Bank-financed programs implementation; This activity is a continuation of the CA Knowledge Network •• Cross-Cutting, focused on academic and research launched under the previous phase of CAWEP in 2012. The potential development, strengthening youth linkages CAKN and its regional and country-specific activities in the with practitioners and dialogue aimed at promoting first and second phases, were highly appreciated by country youth involvement in practical work and creating governments and the academic community. Demand has new generation of water management professionals; been expressed by country practitioners, academic and promoting gender aspects in IWRM. university community and young water professionals to further strengthen country ownership. This should build on CAKN held a Youth side-event at the High-Level International past CAKN activities to support communities of practices, Conference “Water for Sustainable Development” 2018- local youth and academic initiatives, to create new state-of- 2028 on June 19 in Dushanbe to foster youth inclusion art curricula in Central Asian universities, and strengthen in decision-making and give youth a stronger voice. The regional research potential to ensure sustainability and exchange between the youth networks from Central Asia and scalability of project results. In the third phase of the Middle East and North Africa region served as a platform program, the CAKN will further build on, support and for young participants to share their vision, knowledge, and promote increasing cooperation and analytical capacity ideas on current water-related issues. in the area of water management among practitioners, academics and young professionals from five Central Asian A workshop held on December 5-6, 2018 evaluated the countries and Afghanistan. results of the ongoing national assessments of water management academic curricula. The workshop brought The development objective is to enhance regional knowledge together representatives from Kazakhstan, Kyrgyz Republic, and professional capacity and to foster cooperation, cross- Tajikistan, and Uzbekistan to share lesson plans and country dialogue and experience exchange among local course materials. Participants concluded that Central Asian and regional institutions and practitioners in the areas of academic institutions significantly differ in their training water resource management, energy and climate change programs and agreed that it is necessary to increase in the Central Asia region and Afghanistan. The activity experience, curricula, and teaching materials exchange and will undertake a needs assessment for investments in provide contemporary training materials for the instructors 26 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 and their students. The national assessments of water Strengthening Capacity in Afghanistan for management curricula are undertaken in parallel with Greater Collaboration with Tajikistan on the World Bank’s initiative, implemented by the Kazakh- Hydromet, Flood Risk Management and Early German University, to map water, energy, and academic Warning Services knowledge sharing activities. The final results of both assessments will provide recommendations to enhance Activity Status: Ongoing water management curricula in Central Asian universities. CAWEP grant: US$100,000 TTL: Arati Belle Central Asia Water and Energy Data Platform Implementation period: November 2018 – April 2019 Activity Status: Ongoing CAWEP grant: US$50,000 Over 80 percent of the water in the Amu Darya Basin is generated in Tajikistan and Afghanistan and flooding is one TTL: Verena Schaidreiter of the major causes of economic damage in these and Implementation period: July 2019 – December 2020 downstream countries. The activity addresses the need for increased and improved collaboration between Tajikistan The development objective of this activity is to increase and Afghanistan on flood management and early warning. awareness on accessibility, availability, and applicability Specifically, it is identifying priority areas for cooperation to of publicly available spatial data. The activity will create address the challenge of data compatibility. Consultative an interactive data portal in Russian and English. meetings will be arranged to advance hydro-meteorological The link to the portal was published on the CAWEP data exchange and national capacity building for water website13. The need for development of an online portal resources management, flood control, and early warning. to improve access to publicly available information was identified during a CAWEP-funded stakeholder forum on The activity will complement the ongoing Bank-financed Strengthening Analysis for IWRM in July 2012. technical assistance, which aims at strengthening capacity of Afghanistan’s Hydromet and user agencies and The Central Asia Water and Energy Portal is a convenient contribute to early efforts for developing and delivering tool to support decision-making and research in water hydromet, early warning and climate services for improved resource management, agriculture, hydrometeorology, resilience in Afghanistan. Establishing accurate and timely environment, climate and disaster risk management. climate and hydromet early warning information services The portal is built on existing publicly available spatial is urgently needed in Afghanistan to minimize human data (such as World Bank’s Spatial Agent application, and economic losses to such disasters. The capacity UNEP database, Kyrgyz and Tajik Hydromet websites, of Afghanistan hydromet institutions has substantially U.S. Department of Agriculture and others) and integrate degraded over the last three decades. A Hydromet existing water and energy studies that focus on Central Modernization Roadmap was developed to strengthen Asia. The portal provides synthesized interactive data on Hydromet and last mile early warning systems and the Central Asia Hydrometeorology Modernization Project services. Support for addressing some key priorities of the and Climate Adaptation and Mitigation Program for Aral Roadmap is also provided by the Global Facility for Disaster Sea Basin and useful links to open databases. Reduction and Recovery with focus on strengthening inter- agency coordination mechanism and community-based The Central Asia Water and Energy Portal will benefit a disaster risks management. wide variety of stakeholders: water and energy resource managers, policy makers, students, researchers, and other end users across multiple levels across countries in the region. To raise awareness of the portal among students in Central Asia, a student competition is planned for 2019 under the CAWEP Central Asia Knowledge Network. 13 https://www.worldbank.org/en/region/eca/brief/cawep CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 27 ANNEX 2. RESULTS FRAMEWORK PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Values Expected Outputs14 (tracked annually – quantitative; target values are for CAWEP 3.0) planned 2018 2019 2020 2021 202215 TARGET16 /actual OVERALL Strengthen Disparate national-level investments and Number of policies, sector strategies, planned 1 4 4 6 7 • Roadmap for integrated hydropower development in the PROGRAM the enabling fragmented regional cooperation. Weak regional regional institutional frameworks Naryn River Basin (plan: May 2020) LEVEL environment to institutions cannot/are not fulfilling mandates being developed that are based on • Revision of IFAS institutional framework (plan: promote water to promote regional cooperation. HEP investment recommendations of CAWEP funded December 2022) and energy at plans negatively impact on already tense neighborly analytical work (target: at least 7) • Regional vision on water development (plan: December regional level and relationships. 2022) in beneficiary • Roadmap for development of regional electricity countries CAWEP Achievements (Status February markets in Central Asia (plan: July 2020) 2017): Two regional projects (Central Asia • Program for Financial Recovery of Barqi Tojik (plan: Hydrometeorology Modernization Program and December 2019) Climate Adaptation and Mitigation Program for • Roadmap for synchronization of Afghan Power System Aral Sea Basin) informed, approved and regional with the Central Asia power system (plan: December components implemented through regional 2020) organizations and closely linked to national actual 0          components. CARECenv strengthened as regional entity facilitating regional dialogue. Energy trade Number of institutions demonstrating planned 3 6 6 7 7 • Uzbekhydroenergo JSC (plan: December 2019) talks are shifting towards considering strengthening improved management performance • CDC Energia (plan: November 2019) of intra-regional connectivity. (Target: at least 7; of which 3 regional) • KG National Energy Holding Company (plan: May 2020) • KG State Committee for Industry, Energy and Subsoil Use (plan: May 2020) • TJ Barki Tojik (plan: November 2019) • EC-IFAS (plan: December 2022) • AFG DABS (plan: December 2020) of which 1 1 1 2 3 • CDC Energia (plan: November 2019) regional • EC-IFAS (plan: December 2022) actual         of which         regional Number of joint decisions (or agreements) to planned 0 0 0 1 4 • ASBP-4 (plan: December 2022) move forward reached (Target: at least 4) actual         Amount of investments that reflect planned   $0.15 $0.65 $0.65 $0.8 bln • Potential Naryn Cascade development (tbd $0.5 bln) transboundary consideration that are bln bln bln • Tajikistan Power Sector Recovery Project (plan tbc: $ based on/include recommendations from 0.15 bln) CAWEP funded activities (Target: at least actual           USD 0.8 billion) 14. Outputs listed in this column include those planned under ongoing (and in future also of completed) activities (status December 2018). The number of outputs reflected in this column may be lower or higher than overall targets listed in the previous column, because these targets were set at Concept Note approval (July 2017) based on best estimates based on the full program funding amount. The number of outputs may be lower than expected targets because it is expected that additional activities will be undertaken with future incoming funds to meet overall targets. Outputs may exceed the planned target where estimates were set too low in July 2017. Thetarget values will be reviewed at the program mid-term review planned in 2020; based on the mid-term review adjustments may be put forward for discussion andagreement by the Advisory Committee. 15. Expected targets as per currently planned activities. 16. Target defined as in CAEWDP 3.0 Concept Note as adopted in July 2017. Target values are set as ‘at least’ values. 28 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 29 PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Values  Expected Outputs (tracked annually – quantitative; planned/ 2018 2019 2020 2021 2022 TARGET target values are for CAWEP 3.0) actual WATER Data and Diagnostic Opportunities and constraints to improve Number of analytical outputs related to planned 2 2 2 2 5 • Needs assessment report for integrated basin SECURITY Analyses water productivity and use efficiency are not water use efficiency, water balance or management (plan: June 2019) PILLAR systematically analyzed, are not identified at the topics related to integrated water resources • Inventory of assets with GIS-mapping (plan: June cross-country level and not owned by riparian management (Target: at least 5) 2019) governments. National action plans to improve agricultural water productivity do not exist. CAWEP Achievements (Status February 2017): New WSS strategy in Uzbekistan informed; multiple studies developed as basis for carrying forward the policy dialogue: Promoting Irrigation Efficiency, Social Impact Assessment on WSS, Analysis of WSS Services, Strengthening Irrigation Governance, Assessment of Agricultural Water Use Efficiency in Tajikistan. actual Institutions, Institutional capacity varies between countries. Number of learning activities that planned 1 1 1 1 5 • Regional workshop on irrigation modernization Capacity and Limited institutional linkages between riparian strengthen capacity of institutions in the (November 2019) Dialogue states on agricultural water management. Active water sector (Target: at least 5) actual           donors in the region and in countries have disparate coordination. Number of participants in learning activities planned 50   50  50 50  TBD (% of which female) (Target: at least TBD) CAWEP Achievements (Status February % of which         2017): Water User Associations in Uzbekistan female strengthened. actual             % of which             female Percentage of participants (% of which planned 80   80 80  80  70 women) who consider outcomes of training % of which         30 events as relevant and have integrated women them in their work. (Target: at least 70 (30)) actual           % of which           women Supporting Few current investment decisions take into account Number of national-level water investments planned 1 1 1 1 1 • Potential Vakhsh Basin development (plan: end 2019) Investments transboundary implications of water use and/or identified based on CAWEP diagnostic quality impacts. analysis (Target: at least 1) actual           Number of water investments under planned         1 CAWEP Achievements (Status February 2017): preparation No outcome yet. actual           (Target: at least 1) Number of potential beneficiaries of planned         TBD investments supported (% of which female) (Target: at least TBD) % of which         female actual           % of which       female 30 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 31 PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Values Expected Outputs17 (tracked annually – quantitative; planned/ 2018 2019 2020 2021 202218 TARGET19 target values are for CAWEP 3.0) actual ENERGY Data and Diagnostic Opportunities and constraints to improve energy Number of quality and relevant analytical planned 3 8 8 8 6 • Recommendations for Naryn River Basin SECURITY Analyses sector efficiency are not systematically analyzed outputs related to energy sector efficiency hydropower development and for power systems PILLAR and/or are not owned by riparian governments. improvement and system planning, service expansion trajectories (plan: Nov 2020) National energy sector plans do not exist in all reliability, harmonization of trade regulations • Assessment of Options for Regional Electricity countries. or similar topics aiming to promote energy Trade and Electricity Market Integration (plan: Nov security and regional trade (Target: at least 2020) CAWEP Achievements (Status February 2017): 6) • Regional Power System Model for Central Asia Informed Tajikistan Energy Sector Plan 2015-2017 (plan: Nov 2020) and heating sector policy reform in the Kyrgyz • Report on Potential Electricity Trade and Republic Interconnections (plan: Nov 2020) • Report on legal, institutional, regulatory and pricing framework of the electricity sectors of Central Asia countries (plan: Nov 2020) • Program for Financial Recovery of Barqi Tojik (plan: 2019) • Expenditure Program for Maintenance of Assets in Tajikistan (plan: 2019) • Report with Recommendations on Improvement of Power Purchase Agreements in Tajikistan (plan: 2019) actual 3 Updated Program for Financial Recovery of Barqi Tojik with Financial Model and Expenditure Program for Maintenance of Assets and Report with Recommendations on Improvement of Power Purchase Agreements in Tajikistan Institutions, Institutional capacity in countries varies; in some Number of energy sector institutions planned 8 8 8 8 6 • Uzbekhydroenergo JSC Capacity and countries institutions are weak with poor financial supported through capacity strengthening • Hydroproject Design Institute Dialogue performance. activities (of which regional) (Target: at least • CDC Energia 6; of which 1 regional) • KZ KEGOC Coordination among countries in the energy • KG NESK sector initiated. CAREC has mandate as a regional • TJ Barki Tojik energy institution (CAREC Energy Action Plan was • TM Kuvvat approved in 2009). Active donors in the region and • AFG Da Afghanistan Breshna Sherkat in countries have disparate coordination. • (all planned in 2019) of which 1 1 1 1 1 1 CDC Energia (2019) CAWEP Achievements (Status February 2017): regional Barki Tojik strengthened, and CAREC Energy Sector Coordination Committee, Donor Coordination actual 7         All above planned except for TM Kuvvat Council in Tajikistan. CASA-1000 Master Agreement, PPAs and Coordination Agreement of which 1           CDC Energia agreed, Tajikistan Energy Sector Dialogue, Energy regional Donor Coordinating Committee (DCC) convened Number of regional frameworks supporting planned         1 and coordination enhanced and CAREC ESCC, energy security that are being formulated with established in 2012, supported support from CAWEP (Target: at least 1) actual           Number of learning or dialogue activities planned 5 7 7 7 8 • Study tour for CDC Energia on regional power that strengthen capacity of institutions in system planning and operations (plan: 2019) the energy sector (Target: at least 8) • 2 trainings for national energy sector institutions (plan: 2019) • 2 capacity building activities for Uzbekhydroenergo and Hydroproject design institute (plan: 2019) • 2 regional dialogue workshops between Afghanistan and Central Asia (plan: 2020) 17. Outputs listed in this column include those planned under ongoing (and in future also of completed) activities (status December 2018). The number of outputsreflected in this column may be lower or higher than overall targets listed in the previous column, because these targets were set at Concept Note approval (July2017) based on best estimates based on the full program funding amount. The number of outputs may be lower than expected targets because it is expected thatadditional activities will be undertaken with future incoming funds to meet overall targets. Outputs may exceed the planned target where estimates where set too low in July 2017. The target values will be reviewed at the program mid-term review planned in 2020; based on the mid-term review adjustments may be put forward for discussion and agreement by the AC. 18. Expected targets as per currently planned activities 19. Target defined as in CAEWDP 3.0 Concept Note as adopted in July 2017. Target values are set as ‘at least’ values. 32 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 33 PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Values Expected Outputs17 (tracked annually – quantitative; planned/ 2018 2019 2020 2021 202218 TARGET19 target values are for CAWEP 3.0) actual Institutions, actual 2         • Study tour for CDC Energia on regional power Capacity and system planning and operations Dialogue • Training for national energy sector institutions (continued) Number of participants in learning or planned 160 180 180 180 120 Includes participants in above workshops and CAREC dialogue activities (% of which female) Energy Sector Coordinating Committee meetings (Target: at least 120 (40)) % of which 5 8 8 8 40 female actual 149          % of which 11         female Percentage of participants (% of which planned 75 75 75 75 70 women) who consider learning contents as relevant and have integrated them in their % of which       30 work. (Target: at least 70 (30)) women actual 83          % of which         women Supporting The Central Asia Power Systems (CAPS) is Number of energy investments identified planned   1 1 1 2 • Potential Naryn Cascade development (plan: Investments weak and has started to disintegrate since based on CAWEP diagnostic analysis (of 2020) 2009. Countries occur financial loss due to which regional) (Target: at least 2, of which of which   1 the disintegrated trading system. Few current 1 regional) regional investment decisions on water and energy take into account the transboundary implication. Tajikistan actual         and Kyrgyz Republic have winter energy deficit; new investments would have to consider how to alleviate of which         this deficit considering downstream summer regional irrigation water needs and the regional water Number of energy investments under planned 1 1 1 1 4 • TJ Power Sector Financial Recovery Project (plan: allocation system. preparation (of which regional) (Target: at 2019) least 4, of which 2 regional) CAWEP Achievements (Status February 2017): of which         1 CASA-1000, Tajikistan Winter Energy Program, regional Kyrgyz Republic Heat Supply Improvement Project actual and Nurek Hydropower Rehabilitation Project informed. of which           regional Number of potential beneficiaries of planned 23,000 23,000 23,000 23,000 TBD investments supported (% of which female) % of which 49 49 49 49   (Target: at least TBD) female actual             % of which             female 34 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 35 PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Target Values  Expected outputs (tracked annually – quantitative; target values are for CAWEP 3.0) planned/ 2018 2019 2020 2021 2022 TARGET actual LINKAGES Data and Diagnostic No robust recent analysis of links between water Number of analytical outputs related to planned 1 4 4 4 3  • Report on the needs assessment in IWRM training (plan: June PILLAR Analyses and energy. Climate change implications for water water-energy linkages, climate change, 2020) and energy resources management are poorly integrated water resources management at • IWRM-related methodology/guidelines (plan: June 2020) understood at both national and regional levels. regional level or related topic • Stocktaking assessment of gender issues in IWRM (plan: June (Target: at least 3) 2020) CAWEP Achievements (Status February 2017): • Report on status of cooperation between Afghanistan and Public data made accessible through Spatial Tajikistan on hydromet data exchange, flood control and early Agent App; Central Asia Atlas; diagnostic studies warning (plan: December 2019) (e.g. Strengthening Analysis for IWRM in Central actual       Asia, Turn Down Heat III, Role of Glaciers in the Hydrologic Regime of the Amu and Syr Darya Basins). Number of platforms for data access, planned 1 1 1 1 1  • Web-based CA nexus data platform (plan: June 2019) analysis or sharing established at regional level (Target: at least 1) actual       Number of platform users (% of which planned 400 400 400 400 TBD female) % of which       (Target: at least TBD) female actual       % of which       female Percentage of platform users indicating planned 90 90 90 90 90  being satisfied with access to and contents of platform information. (Target: at least actual       90) Institutions, Regional institutions are weak; national institutions Number of regional institutions supported planned 2  2 • EC-IFAS (plan: 2022) Capacity and lack physical and human resource capacity to through capacity strengthening activities • Central Asia Regional Environmental Center (plan: 2022) Dialogue consider water-energy linkages and work across (Target: at least 2) borders. Systems for data sharing and capacity to actual       access publicly available data sets is weak. Institutions, Number of regional frameworks that are planned 2 1  • ASBP-4 (plan: 2022) Capacity and being formulated with support from CAWEP • Regional vision on water development (plan: 2022) CAWEP Achievements (Status February 2017): Dialogue (Target: at least 1) Capacity development for CARECenv, EC-IFAS, actual       Interstate Commission for Water Coordination of Central Asia and for youth and young professionals Number of multi-country learning activities planned 1 2 4 4 4 5  • Cross-country knowledge exchanges (plan: 2018, 2020) with Kazakh German University. (Target: at least 5) • 2 consultative meetings on hydromet information exchange (plan: April and September 2019) Regional Dialogue continues to falter because of actual 1       • Study tour of Tajik institute to Tashkent Institute of Irrigation political tensions and weak regional institutions. and Agricultural Mechanization Engineers (December 2018) CAREC and CARECenv and IFAS have potentially important roles to play. Regular communication Number of participants in multi-country planned 20 20 20 20  TBD  among technical institutes is not happening. Active learning activities (% of which female) donors in the region have disparate coordination. (Target: at least TBD) CAWEP Achievements (Status February 2017): Rogun Riparian Dialogue and donor consultative % of which  10 10 10  10   group; First Deputy Prime Ministers Meeting on female Regional Riparian Issues convened; Second Central Climate Knowledge Forum led to joint decision for actual 5 5  5 5 5    • Study tour of Tajik institute to Tashkent Institute of Irrigation Climate Adaptation and Mitigation Program for Aral and Agricultural Mechanization Engineers (December 2018) Sea Basin. % of which       female Percentage of participants (% of which planned     75  female) who consider outcomes of training % of which     20 events as relevant and have integrated them female in their work. (Target: at least 75 (20)) actual         % of which         female 36 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 37 PILLAR COMPONENT BASELINE OUTCOME INDICATORS Cumulative Target Values  Expected outputs (tracked annually – quantitative; target values are for CAWEP 3.0) planned/ 2018 2019 2020 2021 2022 TARGET actual LINKAGES Institutions, Number of dialogue events promoting planned 2 7 8 9 11 10  • CAY4Water and Gender Water Forum activities (plan: fall PILLAR Capacity and regional cooperation (of which regional) 2019) Dialogue (Target: at least 10) • Youth to Youth IWRM Initiatives in the context of CAY4Water (continued) (plan: 2018, 2019) • Annual CA (plus Afghanistan) Scientific-Practical Conference on special IWRM issues with participation of academia and youth (plan: April 2019) • CA Women in Water – issues and opportunities” – regional conference (plan: fall 2019) • 6 donor coordination meetings (plan: cumulative up to 2022) of which 2 7 8 9 11   regional actual 8     • 5 water partners coordination meetings at operational level + 1 at senior management level (2018) • 1 pre-conference event for high level conference in Tajikistan (June 2018) • 2 Youth to Youth IWRM Initiatives in the context of CAY4Water (June 2018, March 2019) • Pre-conference academic event (April 2019) of which 7     regional Number of participants in dialogue events (% planned 10 20 30 40 50  TBD Participants in above mentioned events of which female) (Target: at least TBD) % of which       female actual  164       % of which  74       female Percentage of participants (of which female) planned     75  who consider outcomes of dialogue events as relevant and have integrated them in of which     20  their work. (Target: at least 75 (20)) female actual 30       Note: not all activities (e.g. donor coordination meetings) track this indicator of which 10       female Earlier regional nexus projects have not been Number of regional investments identified planned      1 successful in achieving regional outcomes and based on CAWEP supported dialogue or cooperation. Few current investment decisions on diagnostic work (Target: at least 1) water and energy take into account transboundary actual       implications and the nexus. Number of regional investments under planned     1  CAWEP Achievements (Status February 2017): preparation (Target: at least 1) actual       Assessment Studies for Rogun; Central Asia Hydrometeorology Modernization Project; Climate Number of potential beneficiaries of planned      TBD Adaptation and Mitigation Project for Aral Sea investments supported (% of which female) Basin Series of Projects preparation informed. (Target: at least TBD) % of which       female actual         % of which         female 38 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 | 39 40 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2018 © Dan Ava