CENTRAL ASIA WATER AND ENERGY PROGRAM CAWEP Annual Report 2020 © 2021 The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: +1 (202) 473-1000 Internet: www.worldbank.org 2020 CAWEP Team William Young, CAWEP Program Manager Azad Abdulhamid, Water Security Pillar Leader Husam Mohamed Beides, Energy Security Pillar Leader John Bryant Collier, Water-Energy Linkages Pillar Leader Togzhan Alibekova, Program Liaison ACKNOWLEDGMENTS CAWEP 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 CAWEP team, led by William Young, drafted, reviewed, and coordinated production of the report, with contributions from CAWEP activity teams. Editorial review was provided by the Europe and Central Asia External Communications team and the report was cleared by World Bank management. DISCLAIMER This work is a product of The World Bank with external contributions. 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CENTRAL ASIA CAWEP WATER AND ENERGY Annual Report PROGRAM 2020 Contents EXECUTIVE SUMMARY ................................................................................................................................................................................................................1 Regional Context......................................................................................................................................................................................................................3 Progress in 2020........................................................................................................................................................................................................................3 Allocations and Disbursements.........................................................................................................................................................................................4 CHAPTER 1. REGIONAL AND COUNTRY CONTEXT.........................................................................................................................................................5 Regional Context......................................................................................................................................................................................................................6 Country Contexts......................................................................................................................................................................................................................7 CHAPTER 2. PROGRAM OVERVIEW AND PROGRESS SUMMARY...................................................................................................................... 11 Program Objective and Structure................................................................................................................................................................................. 12 Allocation of Program Funds........................................................................................................................................................................................... 12 Progress in 2020..................................................................................................................................................................................................................... 14 Program Results..................................................................................................................................................................................................................... 15 Building Climate Resilience.............................................................................................................................................................................................. 16 Fostering Green Growth..................................................................................................................................................................................................... 17 Social Inclusion and Gender............................................................................................................................................................................................. 17 Regional Engagement......................................................................................................................................................................................................... 17 CHAPTER 3. PROGRAM MANAGEMENT, FINANCES AND COMMUNICATION............................................................................................... 19 Program Management........................................................................................................................................................................................................ 20 Financial Overview............................................................................................................................................................................................................... 20 Communication and Outreach........................................................................................................................................................................................ 22 Looking Ahead........................................................................................................................................................................................................................ 23 ANNEX 1. FOCUS AREAS, THEMES, AND ACTIVITIES BY PILLAR....................................................................................................................... 25 ANNEX 2. SUMMARY OF ACTIVITIES................................................................................................................................................................................. 27 ANNEX 3. RESULTS FRAMEWORK...................................................................................................................................................................................... 34 Program Progress and Outcomes.................................................................................................................................................................................. 34 Pillar Progress and Outcomes: Water Security........................................................................................................................................................ 35 Pillar Progress and Outcomes: Energy Security..................................................................................................................................................... 36 Pillar Progress and Outcomes: Water-Energy Linkages...................................................................................................................................... 37 ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank AF Afghanistan BETF Bank-Executed Trust Fund CA Central Asia CAFEWS Central Asia and Afghanistan Flood Early Warning System CAMP4ASB Climate Change Adaptation and Mitigation Program for Aral Sea Basin CAWEP Central Asia Water and Energy Program CAREC Central Asia Regional Economic Cooperation COP Conference of Parties CDC Energia Coordinating Dispatch Center Energia DABS Da Afghanistan Breshna Sherkat EC-IFAS Executive Committee of the International Fund for Saving the Aral Sea ESCC Energy Sector Coordinating Committee EU European Union FCDO United Kingdom Foreign, Commonwealth and Development Office HPP Hydropower plant IFAS International Fund for Saving the Aral Sea IWRM Integrated water resource management JSC Joint-stock company KZ Kazakhstan KG Kyrgyz Republic MOU Memorandum of Understanding PACT Program for Asia Connectivity and Trade RETF Recipient-Executed Trust Fund SECO State Secretariat for Economic Affairs of Switzerland TJ Tajikistan TM Turkmenistan UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development UZ Uzbekistan WSS Water supply and sanitation ii | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 EXECUTIVE SUMMARY © GFDRR/World Bank CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 1 This report describes the activities and management of the Central Asia Water and Energy Program (CAWEP) for the period January 1–December 31, 2020. It is the third Annual Report for the 3rd phase (2018–2022) of the CAWEP BY THE NUMBERS program. CAWEP commenced in 2009 as the Central Asia Energy-Water Development Program and was renamed in US$12.6 MILLION 2019. It is a multi-donor trust fund managed by the World Bank with a US$12.6 million funding envelope, comprising in Bank-executed and Recipient-executed grants (chronologically) US$3.5 million from the Swiss State Secretariat for Economic Affairs (SECO), US$1.0 million to strengthen the enabling environment to from the United Kingdom Foreign, Commonwealth and promote water and energy security regionally and Development Office (FCDO), and €7.0 million from the in beneficiary countries European Union. Program design for the 3rd phase was informed by lessons 6 countries AFGHANISTAN from prior phases, and the program development objective was adjusted to emphasize water security more broadly as KAZAKHSTAN well as enabling environment strengthening at both regional and national levels. The program development objective KYRGYZ REPUBLIC is to strengthen the enabling environment to promote water and energy security at regional level and in the TAJIKISTAN beneficiary countries. This aligns with the World Bank’s TURKMENISTAN regional engagement framework that aims to strengthen connectivity and increase the economic value of water and UZBEKISTAN energy resources in the region. 31 activities CAWEP’s long-term vision is to promote sustainable development and livelihood security across the region. It thus finances initiatives that (i) support improvements Technical assistance to Advisory services to Preparation grants in water and energy management and development, strengthen institutional inform policy and to support (ii) strengthen national and regional institutions, and capacity for water and investments investments energy management (iii) facilitate regional dialogue on water and energy security in order to advance regional cooperation on sustainable development and climate resilience. By the end of December 2022, the program aims to have: •• Improved national policy frameworks that guide water and energy security; Water Energy Water-Energy •• Informed a regional framework for water and/or energy Security Security Linkages security; •• Strengthened national and regional institutional Data and Diagnostic Analyses capacity for water and energy management; and •• Leveraged/informed US$2.5 billion (US$0.8 billion for the 3rd phase) of World Bank investments that improve Institutions, Capacity and Dialogue national and regional water and energy security. The program has three pillars and three cross-cutting Supporting Investments themes (Figure 1). Pillar structure and content focus on facilitating water and energy security, and the linkages Program Management and Communications between them. The Water Security Pillar promotes sustainable and efficient use of shared water resources FIGURE 1. PROGRAM STRUCTURE and integrated water resources management (IWRM). 2 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 The Energy Security Pillar promotes the security and economic efficiency of energy supply from national to REGIONAL WATER AND regional level, and the Water-Energy Linkages Pillar ENERGY SECURITY guides management of the water-energy nexus and climate-change adaptation efforts that link two or more countries. Regional Regional The cross-cutting themes are (i) data and diagnostics, Regional Power Coordination Water Trade and Capacity (ii) institutions, capacity and dialogue, and (iii) supporting Management Building investments. National activities are recognized as important building blocks for regional water and energy security, and Afghanistan has been formally included as a beneficiary country. National Water National Energy Environmental Management Sector Capacity Management Regional Context 2020 was dominated by the COVID-19 pandemic, and the associated major and ongoing economic and social Sub-Basin Water Renewable impacts. The pandemic focused government efforts on Management Energy emergency health responses, targeted social assistance, and food security investments. Countries across the region collaborated to provide humanitarian assistance to those in need. In the Kyrgyz Republic, protests followed the Irrigation Modernization October parliamentary elections that were widely seen as fraudulent; the government was removed from power and the election results were abandoned. Ongoing deliberation on electoral reform prior to new parliamentary elections, as well as transformation of the country’s political system Capacity Building have moved the focus away from important sectoral reforms. In Uzbekistan, the May 2020 failure of Sardoba Dam with impacts in both Uzbekistan and Kazakhstan, FIGURE 2. CAWEP FOCUS AREAS IN 2020 focused attention on safety of hydraulic structures and the need for regional cooperation to prevent water conflicts. In the energy sector, key priorities were development of CAWEP continues to emphasize national activities as the regional electricity trade, and diversification of electricity building blocks for regional security, with regional dialogue generation capacity. Climate change received increasing supported under Facilitation of Regional Dialogue and attention as all countries began preparations for the Development Partnerships on Water & Energy Security in twenty-sixth session of the Conference of the Parties Central Asia. Under this activity, the Towards Water-Secure (COP26) of the United Nations Framework Convention Sustainable Economics (2019) brochure was used to on Climate Change (UNFCCC) scheduled for late 2021 in frame consultations on water security in the Central Asian countries in 2020. These consultations sought to better Glasgow, Scotland. understand national priorities and opportunities, and to gauge country perspectives on regional water cooperation. Progress in 2020 A regional strategy for engagement on water security will be finalized in 2021 to guide ongoing CAWEP efforts on The CAWEP portfolio increased to 29 activities (ten under this agenda. the Water Security Pillar, twelve under the Energy Security Pillar, and seven under the Water-Energy Linkages Pillar) At the policy level, a regional multi-system platform as well as program management and communications. concept was developed for improved flood and landslide Four new activities (two of which are recipient-executed) forecasts, warnings and advisory services, in the Amu were added. Five activities were completed during the Darya (including Afghanistan) and Syr Darya River basins. year. Common themes across pillars include improving The proposed platform would support data sharing, knowledge exchange, improving resource management, strengthen data processing, and improve real-time and building capacity. hydrometeorological monitoring and forecasting. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 3 CAWEP has informed investments totaling US$1.29 billion including World Bank financing of US$0.56 billion. This includes new water operations in Kazakhstan and Tajikistan, landscape restoration projects in Kazakhstan and Tajikistan, and energy development investments in Tajikistan and Uzbekistan. Allocations and Disbursements In 2020, CAWEP allocated US$6.48 million to activities, bringing total allocations to US$11.1 million. Disbursement in 2020 was double the 2019 level, despite pandemic restrictions that slowed implementation. Implementation delays caused by pandemic restrictions meant nearly half of current activities were extended beyond their original planned completion date. Relative allocations by pillar are Water Security (41 percent), Energy Security (26 percent), Water-Energy Linkages (23 percent), and program management and communications (10 percent). 4 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 REGIONAL AND COUNRY CONTEXT CHAPTER 1 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 5 © GFDRR/World Bank CAWEP promotes water and energy security and recognizes In December, the UN General Assembly unanimously that the distribution of water resources across Central adopted a draft resolution introduced by Tajikistan and the Asia makes regional collaboration essential to maximizing Netherlands, entitled “United Nations Conference on the shared benefits. In 2020, the ongoing COVID-19 pandemic Midterm Comprehensive Review of the Implementation of had major impacts, causing the 1st economic contraction the Objectives of the International Decade for Action “Water in Central Asia in over 25 years. The World Bank estimates for Sustainable Development”, 2018–2028”. The draft that in 2020, an additional 1.6 million people1 in Central resolution highlighted climate change, global water stress, Asia fell into poverty, increasing the importance of water and and the link between sustainable development and water, energy security for the region’s poorest. Regional meetings and welcomed Tajikistan’s offer to convene a high-level continued apace (although mostly shifted online) with international conference to support preparation for the new bilateral agreements and regional commitments on comprehensive mid-term review. energy sharing, transboundary resources, and knowledge exchange. 2020 was also an important year for climate Disasters affecting the region in 2020 included floods in change policy, as the nationally determined contributions Uzbekistan, Kazakhstan, and Afghanistan. Natural disasters of the Paris Agreement on climate change entered into cost the region an average of US$10 billion annually, and effect and preparations began for the UNFCCC COP26 this will continue to rise without sustained action. The scheduled for late 2021 in Glasgow, Scotland commenced. Sardoba Dam failure in Uzbekistan displaced more than All countries in the region are signatories of the Paris 100,000 people in Uzbekistan and Kazakhstan, affected Agreement. more than 35,000 hectares of land in both countries and led to six deaths2. In July, Kazakhstan and Uzbekistan signed a water cooperation roadmap3 to improve transparency in water allocation. The roadmap regulates Regional Context joint inspection and monitoring of post-1990s water facilities, as well as joint measures on water allocations Water Security. Following a decade without high-level from upstream reservoirs. A bilateral treaty between water engagement, the five Central Asian leaders met in Kazakhstan and Uzbekistan on joint management, use and 2018 and then again in 2019, reflecting a marked shift in protection of transboundary water facilities was drafted4 regional politics. The meeting planned for October 2020 and is under negotiation. was postponed because of COVID-19, but regional leaders participated in an extraordinary meeting of the Cooperation Energy Security. In February, the 4th Annual International Council of Turkic-Speaking States in April, and in the Congress and Exhibition Hydropower for Central Asia and Shanghai Cooperation Organization’s Council of the Heads Caspian was held in Bishkek, and the 2nd Central Asia of State summit in November. The US-led C5+1 High- Renewable Energy Summit was held in Nur-Sultan. The Level Dialogue featured all five Central Asian states, and Central Asia Regional Economic Cooperation (CAREC) discussed environmental and energy policy, as well as trade, Energy Sector Coordinating Committee (ESCC) met later investment, and borders. The China-Central Asia Foreign in the year. ESCC praised regional successes in renewable Ministers’ Meeting convened an inaugural event in October, energy and adopted the CAREC Energy Strategy 2030. and frequent bilateral talks between national leaders CASA-1000 remains a key effort for regional energy security occurred across the region during the year. and the Central Asia – South Asia Regional Energy Market. Conceived in 2016, this US$1.17 billion investment will In 2020, Tajikistan commenced its chairmanship of the enable transmission of 1300 MW of hydroelectricity from Executive Committee of the International Fund for Saving the Kyrgyz Republic and Tajikistan to Afghanistan and the Aral Sea (EC-IFAS), with Sulton Rakhimzoda appointed Pakistan. Early in 2020, Afghan President Ashraf Ghani the new Chairman in September. The key priorities for the inaugurated CASA-1000 work in Afghanistan. Uzbekistan Tajikistan chairmanship are reform of IFAS institutional and Tajikistan are implementing projects to balance energy structures and processes, and implementation of the and water resources, including reconstruction of the 500 kV 4th Aral Sea Basin Program. power transmission line Guzar–Regar in Uzbekistan. Early 1 Bjerde, Anna. 2021. Envisioning Central Asia’s Green Recovery (opinion). July 1, 2021. https://www.worldbank.org/en/news/opinion/2021/07/01/envisioning-central-asia-s-green-recovery. 2 Global Observatory for Water and Peace. 2020. Hydrodiplomacy in Rapid Action: Early Insights from the Sardoba Dam Disaster in Central Asia. September 9, 2020. https://www.genevawaterhub.org/news/hydrodiplomacy-rapid-action-early-insights-sardoba-dam-disaster-central-asia. 3 Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan. 2020 Казахстан и Узбекистан заключили документ, регулирующий ряд вопросов в водной сфере. July 2, 2020. https://www.gov.kz/memleket/entities/ecogeo/press/news/details/77624?lang=ru 4 Report of the Minister of Ecology, Geology and Natural Resources on Water Security (Nur-Sultan, November 6, 2020). https://online.zakon.kz/Document/?doc_id=35821446#pos=5;-106 6 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 in 2020, Kazakhstan and Uzbekistan signed water and Country Context energy cooperation agreements valued at US$500 million, and Kazakhstan leased 100 hectares of public land for solar energy development. Afghanistan Water-Energy Linkages. The 9th meeting of the EU- Afghanistan faced several additional challenges and Central Asia Working Group on Environment and Climate uncertainties during 2020. Despite the signing of a peace Change was convened in Brussels in February, to present agreement between the United States and the Taliban in the priorities of the new EU Strategy on Central Asia February, active conflict between Taliban and government and the priorities of the Platform on Environment and forces continued, with no clear path to sustained and Water Cooperation. Several bilateral agreements on comprehensive peace. environmental cooperation were signed during 2020, In January, a presidential decree split the Ministry of Energy including a five-year Afghanistan-Tajikistan Memorandum and Water into two independent regulatory bodies for water of Understanding (MOU) on environmental protection of and energy. The new National Water Affairs Regulation the shared mountain ecosystem of the Panj – Amu Darya Authority (NWARA) is responsible for the development and rivers. The key areas for cooperation under the MOU are: management of water resources, and the implementation (i) climate change adaptation, (ii) biodiversity conservation, of water sector reform, water resources infrastructure, (iii) water quality monitoring, (iv) environmental and water supply. The government identified infrastructure assessment, and (v) knowledge and expertise sharing for rehabilitation and expansion as one of its priorities. The ecosystem management. Water Regulatory Law was amended to clarify sector At the start of 2020, the five Central Asian countries and responsibilities, confirming the Supreme Council of Afghanistan, hosted by Germany in Berlin, signed a Joint Water, Land and Environment as the highest leadership, Declaration of Intent on climate cooperation within the policy, and decision-making authority, and expanding and framework of Green Central Asia. In October, the 3rd Central strengthening the role of NWARA in developing policy, Asian Conference on Climate Change was convened virtually strategy, and legislation. by the Climate Adaptation and Mitigation Program for In December, The World Bank provided a US$50 million the Aral Sea Basin (CAMP4ASB). Kazakhstan, Tajikistan, grant for the Afghanistan Water, Sanitation, Hygiene, and and Uzbekistan accessed Green Climate Fund financing Institutional Support Project to improve the access to and to support various initiatives including modernization of quality of water supply in Kabul, Kandahar, and Herat, and hydrometeorology agencies. Reduced winter snowfall to strengthen the capacity of the Afghanistan Urban Water in Tajikistan and subsequent low meltwater inflow to Supply and Sewerage Corporation to deliver sustainable hydropower reservoirs led to reduced energy exports and services. domestic energy restrictions. Following the presidential decree, project implementation and renewable energy were transferred to Da Afghanistan Breshna Sherkat (DABS). In April, the connection work of 500 kV Turkmenistan-Afghanistan transmission line under the TUTAP Project was completed. The Asian Development Bank (ADB) approved a US$110 million grant to boost power supply and strengthen the national energy sector. This will finance construction of a ~200 km, 500 kV overhead transmission line from Uzbekistan to Afghanistan and provide a key interconnection node to receive power from Tajikistan, Turkmenistan, and Uzbekistan. DABS signed contracts totaling US$160 million for four renewable power projects involving the private sector. Two agreements with the Uzbekistan National Electric Grid include the purchase of electricity for 2021 and the construction of the ADB- funded 500 kV transmission line. Under the agreement, Uzbekistan will export 2.2 GWh of electricity to Afghanistan in 2021. In August, Uzbekistan signed a separate ten-year agreement to supply electricity to Afghanistan. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 7 Kazakhstan first transferred to the Ministry of Transport, Architecture, Construction and Communication, and subsequently In January, Kazakhstan approved a Concept for Water returned to the State Agency on Architecture, Construction, Resources Management Program for 2020–2030. Housing and Communal Services. The State Committee for Priorities include international cooperation, institutional Industry, Energy and Subsoil Use was replaced by a new and governance reforms, and infrastructure modernization, Ministry of Energy and Industry. amongst others. The Ministry of Industry and Infrastructure Development – responsible for drinking water supply In September, the State Water Resources Agency hosted – announced a goal of universal access to good quality a WSS conference in Bishkek. The Department of Drinking drinking water for all citizens by 2025. Current access is at Water Supply and Wastewater Disposal plans to develop 97.5 percent in urban areas and 87.7 percent in rural areas. a new WSS law and to update design norms and rules for water supply and wastewater systems, with support from Kazakhstan signed the UN Sustainable Development the World Bank-financed Sustainable Rural Water Supply Cooperation Framework for 2021–2025, that includes and Sanitation Development Project, and international human capital development, effective institutions, and expert guidance financed by CAWEP. gender equality, together with environmental sustainability commitments. In December, the Kazakh Parliament During 2020, the government developed and approved adopted a new Environmental Code that comes into force in a regulation “on the conditions and procedure for the July 2021. The Code introduces the “polluter pays” principle implementation of activities for the generation and supply and gives responsibility to local authorities to direct of electricity using renewable sources of energy”. The 100 percent of the resulting revenue to nature protection. regulation sets out the roles, rights, and obligations of all Large enterprises will be obligated to adopt best available participants in the energy market. technology to reduce their carbon footprint. A Coordination Council on Green Economy and Climate Renewable energy was added to the national list of priority Change was formed to merge the coordination on climate investment projects, with a view to lessening the tax burden change and green economy. The Climate Finance Centre from expensive costs that is a barrier to renewable energy acts as the secretariat for the new council. expansion. Nineteen renewable energy projects were approved, valued at US$1.1 billion. Although 70 percent Tajikistan of electricity is still produced from burning coal, the government has made a strong commitment to renewable In 2020, President Emomali Rahmon was re-elected for energy, and by September, 108 renewable energy power his 5th seven-year term, and the ruling People’s Democratic stations with a total installed capacity of 1500 MW had Party retained control of the lower house of parliament. been added, more than double the capacity added during The government continued its broad water sector reforms, the same period last year. Over half of the renewable with coordinated support from multiple development generation capacity is from solar, and one quarter is from partners. Based on a river basin approach enshrined in the wind. Kazakhstan’s solar power potential is estimated to recent Water Code, the reforms include strengthening of be 3.9–5.4 GWh, or around 5 percent of current annual water user associations, irrigation service providers, and consumption. Current commitments are for renewable river basin organisations. The government signaled its energy to account for ten percent of total power generation intentions to prepare a national irrigation strategy. by 2030 and 50 percent by 2050. At the start of the year, Tajikistan published a ‘Use of Kyrgyz Republic Thermal Energy’ policy on domestic heating, that ties into broader power industry reforms that aim to increase the In addition to the widespread health and related economic financial viability, efficiency, and governance of state power crises of 2020, the Kyrgyz Republic was disrupted by political utility Barqi Tojik by 2025. upheaval following disputed parliamentary elections in October, the results of which were annulled. President During the summer, the government announced a reduction Sooronbay Jeenbekov resigned amid protests, and Sadyr in hydropower generation as a result of low inflows to Nurek Japarov acquired political momentum and came to power. Reservoir. Nurek Hydropower Plant generates around half of the energy used in Tajikistan. The reductions affected Several institutional changes occurred in the water and both electricity export and domestic consumption. Rogun energy sectors. The State Water Resources Agency was Dam and Hydropower Plant remains controversial. In 2020, transferred to the Ministry of Agriculture, Water Resources lawmakers agreed to allow foreign investors to buy shares and Regional Development, while the Department of in Rogun, but with funding maintained on-budget, there is a Drinking Water Supply and Wastewater Disposal was risk of serious macro-fiscal distress. 8 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Turkmenistan The same month, the Ministry of Energy signed three energy generation deals worth more than US$2 billion. In July, Turkmenistan hosted the 1st meeting of the ADB approved a loan to finance three new hydroelectric Interdepartmental Working Group on working out the power plants. The World Bank and the International Finance National Strategy of Turkmenistan on the Development Corporation approved financing for a photovoltaic solar of Renewable Energy. This was a virtual meeting with station in the Navoi region. These investments are part of participation from several international organizations. an ambitious national energy strategy that aims to generate Discussions covered topics such as global trends and a quarter of all electricity from renewable sources by 2030, prospects for the use of renewable energy sources in including 3.8 GW from hydropower. CAWEP supported Turkmenistan and using international experience to develop these efforts through institutional strengthening of the the National Strategy of Turkmenistan on the development newly established Uzbekhydroenergo that will design and of renewable energy. In September, the Cabinet of Ministers implement small and medium hydropower projects. established a new center for conservation of the Aral Sea. The government has earlier committed to planting ten million trees during the calendar year. Uzbekistan In July, Uzbekistan adopted the Concept for the Development of Water Resources of the Republic of Uzbekistan for 2020–2030, with nine priorities: (i) rational use of water resources, (ii) scaling-up water-saving technologies, (iii) safe and efficient management of water infrastructure, (iv) improved condition of irrigated land, (v) adoption of market principles in the water sector (including PPP), (vi) improved governance in water resource management and service delivery, (vii) improved transboundary water management, (viii) adoption of information and communications technologies in water management, control and accounting, and (ix) capacity building and research for improved sector performance. To ensure full implementation, a responsible department will be established within the system of the Ministry of Water Resources. Early in May, the recently built Sardoba Dam in the Syrdarya region failed, causing flooding downstream that led to six deaths and displaced more than 100,000 people in Uzbekistan and Kazakhstan. The failure highlighted the need for increased attention to dam safety and the maintenance of hydraulic structures in general. In May, Uzbekistan published the Concept for the Provision of the Republic of Uzbekistan with Electric Energy for 2020–2030, with recommendations for both thermal and renewable energy, power demand outlooks, and key sector priorities including: (i) increasing generating capacity from 12.9 GW to 29.3 GW by 2030 (including 5 GW of solar); (ii) reducing natural gas consumption and reducing transmission; (iii) modernizing power plants and constructing new ones; (iv) improving power metering systems; and (iv) diversifying fuel and developing renewables. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 9 10 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 PROGRAM OVERVIEW AND PROGRESS SUMMARY CHAPTER 2 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 11 Program Objective and Structure CAWEP supports (i) data and diagnostic analyses, (ii) institutions, capacity, and dialogue, and (iii) relevant CAWEP is a multi-donor trust fund administered by The investments; under three pillars: World Bank, with financing from the European Union, •• Water Security – promoting sustainable and efficient Switzerland, and United Kingdom. The 3rd phase of CAWEP use of shared water resources and IWRM; commenced in January 2018 with a US$3.5 million commitment from SECO, followed in August 2018, by a •• Energy Security – promoting security and economic US$1.0 million commitment from FCDO, channeled through efficiency of energy supply from national to regional the Program for Asia Connectivity and Trade (PACT). The level; and United Kingdom contribution supports electricity trade with •• Water-Energy Linkages – guiding management of the South Asia and energy sector activities in Afghanistan, water-energy nexus and climate change adaptation Kyrgyz Republic, Tajikistan, and Uzbekistan. In May 2019, efforts that link two or more countries. the European Union committed €7.0 million, bringing total program funding to US$12.6 million. Annex 1 lists current activities, Annex 2 presents the summary of activities, and Annex 3 summarizes The program development objective is to strengthen the achievements against the program Results Framework. enabling environment to promote water and energy security at regional level and in the beneficiary countries. CAWEP’s long-term vision is to promote sustainable development and Allocation of Program Funds livelihood security in Central Asia and Afghanistan. Of the total portfolio of 29 activities in the 3rd phase of the CAWEP supports activities to increase regional cooperation program to-date, 28 activities were active in 2020, of which to advance sustainable development and climate resilience. three were recipient-executed, and 25 were Bank-executed. Initiatives financed by the program are designed to improve Two activities supported program management and water and energy management, develop, and strengthen communications. In 2020, four new activities commenced, national and regional institutions, or facilitate regional and five activities concluded. Table 1 shows the distribution dialogue on water and energy security. of activities and funding by pillar and theme, Figure 3 shows the distribution across the region, and Figure 4 illustrates By the end of December 2022, CAWEP aims to have: the focus areas of the pillars. •• Improved policy frameworks for water and energy security that are adopted at national level; •• Informed a framework for regional water and/or energy security; Kazakhstan •• Strengthened regional and national institutional capacity US$ 2.00M for water and/or energy management; and •• Leveraged/informed US$2.5 billion (US$0.8 billion for Uzbekistan the 3rd phase) of World Bank investments that improve Albania Kyrgyzstan US$ 1.03M national and regional water and energy security. US$ 0.60M Turkey Turkmenistan US$ 0.00M Tajikistan CAWEP work with development Occupied Syrian efforts partners to expand US$ 2.20M Palestinian Terr. Arab Rep. establish the parameters for cooperation to Tunisia at technical Lebanon Iraq Afghanistan cco and institutional levels, to strengthen availability of data US$ 0.35M Jordan Regional funding US$ 3.83M and information, and to harmonize sectoral policies and Kuwait Grand total US$ 10.01M Algeria facilitate cross-border connectivity and trade. regulations toLibyan Arab Bahrain Jamahiriya Egypt FIGURE 3. REGIONAL Qatar United Arab DISTRIBUTION OF FUNDING Emirates Saudi TABLE 1. DISTRIBUTION OF ACTIVITIES AND FUNDING Arabia BY PILLAR AND THEME Oman Mali Institutions, Capacity Supporting Niger Data and Diagnostics Total Building, & Dialogue Investments Chad Yemen Pillar No. US$M No. US$M No. US$M No. US$M Burkina Water Security 1Sudan 0.23 7 2.59 2 1.80 10 4.62 Faso Benin Energy Security Nigeria 3 0.69 5Djibouti 0.93 4 1.25 12 2.87 e Water-Energy Linkages 4 1.27 3 1.25 0 0.00 7 2.52 oire Togo Total 8 2.19 15 4.77 6 3.05 29 10.01 Cameroon Somalia Maldives Uganda CENTRAL 12 | Gabon ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Congo REGIONAL WATER AND ENERGY SECURITY Regional Coordination and Regional Water Management Regional Power Trade Capacity Building Strengthening Service Delivery of CAREC Energy Sector Coordination Facilitation of Regional Dialogue and CA National Hydrometeorological and Cooperation Development Partnerships on Water Agencies & Energy Security in CA Capacity Development for Regional Strengthening Capacity in AF for Cooperation in Power System Planning CA Knowledge Network Greater Collaboration with TJ on and Operations Hydromet, Flood Risk Management and Early Warning Services Analysis of Synchronized Operation CA Water and Energy Data Platform of AF and CA Power Systems National Water Management CA Regional Electricity Trade and Environment Management Market Development Regional Water Resources Management in CA TJ Integrated Landscape- Catchment Management National Energy Sector Capacity Human Water Security: KG Integrated Landscape-Catchment Strengthening WSS at Regional Level Energy Sector Strengthening Management Sub-Basin Water Strategic Environmental Management Support for Preparation of the Rural Assessment of the Power Sector Electrification, Sebzor HPP and Expansion in TJ Vakhsh Integrated River Basin Khorog-Qozideh Power Transmission Management Line Projects (RETF and BETF) Disruptive Technologies for Landscape Restoration Along the Project Preparation for Uzbekistan Aral Sea Watershed in KZ and UZ North Aral Sea Engagement Electricity Transmission System Modernization and Market Development (RETF and BETF) Support for Preparation of the North Aral Sea Development and Options for Leveraging Commercial Revitalization Project Financing for Power Generation in TJ Irrigation Modernization Renewable Energy Sharing Information and Exposure to Pave the Way to Irrigation Uzbekistan Small and Medium Modernization Hydropower Development Program Strengthening Irrigation Management Across CA Integrated Hydropower Development in the Naryn River Basin Capacity Building CA “Solutions for Water” (S4W) Living Lab FIGURE 4. CAWEP FOCUS AREAS ACROSS THE PILLARS. CLOSED ACTIVITIES SHOWN IN ITALICS. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 13 Progress in 2020 Capacity Development for Regional Cooperation in Power System Planning and Operations concluded a series of Implementation in 2020 was slowed by COVID-19 trainings for regional power system operator Coordinating restrictions, especially for activities involving field data Dispatch Center (CDC) Energia and national dispatch collection and international consultant travel. In response, centers. Training needs were identified for: dispatching, the scope of some activities was revised and the closing power system planning studies, outage coordination, dates of twelve activities were extended. Knowledge protection studies, telecommunications, cybersecurity, sharing, training and consultation efforts moved to online information technology, and supervisory control and data formats, which generated significant cost savings. Over acquisition (SCADA) / energy management systems. A 600 people attended 15 CAWEP online events. While this phased approach is proposed for longer-term capacity modality was generally effective, internet connectivity development of CDC Energia. CAWEP will continue to challenges, time zone differences, and disruptions from support CDC Energia using new recipient-executed and illness and lockdowns, caused frustration for many Bank-executed grants. The recipient-executed work will stakeholders. enhance the capacity for power system planning and operations, as well as the uptake of digital technologies. During 2020, CAWEP successfully completed five activities The Bank-executed work will define the scope, preliminary – two under the Water Security Pillar and three under the design, and cost of digitalization of the electricity Energy Security Pillar. Four new activities commenced: two transmission network. This will inform design of an recipient-executed activities and two Bank-executed. Electricity Sector Transformation and Resilient Transmission Project that will guide development of a digitalization Vakhsh Integrated River Basin Management provided the strategy and increase transmission network capacity for first consolidated basin characterization and assessment integration of renewable energy. to guide rational and systematic water resources development and management in the Vakhsh, especially Two other energy activities completed in 2020 – Uzbekistan in the lower basin. The reports and maps produced Small and Medium Hydropower Development Program and are guiding dialogue between the Tajikistan Ministry of Kyrgyz Republic: Integrated Hydropower Development in Energy and Water Resources and development partners, the Naryn River Basin – explored hydropower potential in to secure financing for, and to inform the design of, Uzbekistan and the Kyrgyz Republic. Uzbekistan is one of priority investments. The World Bank and EU financed the most energy-intensive economies in the world, with Tajikistan Resilient Irrigation Project, that will strengthen electricity generation is dominated by natural gas with the capacity for water resources planning and irrigation renewable energy potential underdeveloped. In 2017, the management at national and basin levels, and improve government established the Joint-Stock Company (JSC) performance of selected irrigation schemes in the Vakhsh Uzbekhydroenergo and adopted programs to develop river basin, is using the activity outputs in the project hydropower pilots to diversify generation capacity. The Small design process. and Medium Hydropower Development Program conducted trainings and a study tour for Uzbekhydroenergo and its Sharing Information and Exposure Visit to Pave the Way to affiliated Hydroproject Institute and developed a capacity Irrigation Modernization activity took stock of the challenges building plan. A method for assessing the hydropower in irrigation service delivery in Central Asia, and identified potential of river basins and a spreadsheet-based financial areas for potential support: (i) development of policy and model were developed to guide hydropower pilots and regulatory frameworks; (ii) institutional reforms; (iii) irrigation pre-feasibility studies. Integrated Hydropower Development and drainage system modernization; (iv) strengthening in the Naryn River Basin identified and ranked potential agricultural services and practices; and (v) knowledge large and medium-sized hydropower projects in the Kyrgyz and information systems. The activity helped define the Republic, considering financial costs and environmental scope of a new regional activity – Strengthening Irrigation and social risks. The assessment highlighted areas for Management Across Central Asia – that will conduct public strengthening institutional arrangements including legal and institutional expenditure reviews to inform irrigation and regulatory frameworks for private sector participation. strategies particularly in Tajikistan and Uzbekistan. A 2nd new regional activity – Strengthening Water A US$1.5 million recipient-executed grant was established Resources Management at Regional Level – will enhance to support preparation of Kazakhstan’s North Aral Sea capacity and raise awareness of safety and rehabilitation Development and Revitalization Project, which will improve of shared hydraulic infrastructure, and on conjunctive use the Aral Sea environment and provide local livelihood of groundwater and surface water. The work is aligned with opportunities; biodiversity and human health benefits are CAWEP objectives and client priorities expressed in recent expected. The grant will finance the project’s feasibility study consultations. and its environmental and social impact assessments. 14 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Another new activity – Options for Leveraging Commercial Policies, Financing for Power Generation in Tajikistan – is reviewing strategies, institutional bottlenecks to private financing of construction and frameworks rehabilitation projects in the power sector and developing 1 a roadmap for greater commercial financing under the 0.5 Tajikistan Generation Expansion Plan. 0.6 0.4 0.2 Program Results 0 CAWEP has made steady progress towards its final Results Joint decisions Institutions Framework targets (Figure 5), with the greatest progress with improved made on improving institutional performance. CAWEP activities performance are closely linked to broader World Bank engagement, Target Actual vs Final Target and provide key technical support to sector reforms, and strengthening the enabling environment and institutions. CAWEP brought international best practice and global FIGURE 5. 2020 PROGRAM RESULTS technical knowledge to the Kyrgyz Republic to support development of a new WSS law, and to update outdated design norms in water supply and wastewater. CAWEP supported the extension of the MOU on environment workshops and webinars, analysis and recommendations protection between Afghanistan and Tajikistan and is for institutional development, and support for strategies, contributing to work under the MOU through the Afghanistan procedures, guidelines and methodologies, CAWEP Hydromet Atlas, training curricula development, and contributes to improving the skills of decision makers and a forthcoming joint consultative workshop on regional technical professionals in the water and energy sectors. collaboration. CAWEP has informed the design of nine investment Half of the CAWEP portfolio focuses on enhancing the operations totaling US$1.29 billion in development finance, capacity of national institutions (Figure 6). Through technical including US$0.56 billion of World Bank financing (Figure 7). US$1.29 BILLION REGIONAL INSTITUTIONS 2 — EC IFAS — CDC Energia NATIONAL INSTITUTIONS — AF Meteorological Department — TJ Barki Tojik — AF DABS — TJ Committee of Environmental — KZ Kazhydromet Protection — KZ Committee of Water Resources — TJ State Unitary Enterprise Khojagii — KZ KEGOK Manziliyu-Kommunali 22 — — — KZ Kazakh-German University KZ Kygyzhydromet KG Department of Drinking Water and — TM Turkmenhydromet — UZ Uzhydromet — UZ Ministry of Water Resources Wastewater Disposal — UZ Uzsuvtaminot — KG Ministry of Energy and Industry — UZ Uzhydroenergo — KG National Energy Holding — UZ Uzhydroproject Institute — TJ Tajikhydromet — UZ National Electric Grid — TJ Ministry of Energy and Water Resources FIGURE 6. INSTITUTIONS BENEFITING FROM CAWEP ACTIVITIES CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 15 ••CAMP4ASB CAMP4ASB Central Asia •• Program for ••Central Asia for Financial Program Recovery  Financial of Hydrometeorology Hydrometeorology Recovery of Barki Tojik (2019– Modernization Project Modernization Project Barki Tojik 2025)  Tajikistan Rural Water (2019–2025) •• TJSupply Rural Water Supply and Sanitation •• CAREC Energy Project and Sanitation Project  CAREC Energy Strategy Strategy ••UZUzbekistan Water and Water Services Services and •• Concept  Conceptofofregional regional Institutional Support Central Institutional Support Project Asia Central Asiaand and Project AfghanistanFlood Afghanistan Flood ••KG Sustainable Kyrgyz RuralSupply Water Rural Sustainable Water Supply and has synergies informs & Early Warning Early (CAFEWS)initiative (CAFEWS) WarningSystem System initiative and Sanitation Sanitation Development with ongoing contributes to  Memorandumof •• Memorandum of Development Project Project  Afghanistan Herat World Bank development Understanding Understanding between Afghanistan •• AF Herat Electrification between Afghanistan Electrification Project Project operations of and Tajikistan and Tajikistan has leveraged US$1.29 B for preparation of 9 investment projects •• KZ North Aral Sea Development and Revitalization Project •• TJ Power Utility Financial Recovery Program •• KZ Resilient Landscapes Restoration Project •• TJ Sebzor Hydropower Project •• TJ Resilient Landscapes Restoration Project •• TJ Khorog-Khozidesh Power Transmission Line Project •• TJ Resilient Irrigation Project •• UZ Electricity Sector Transformation and Resilient •• TJ Rural Electrification Project Transmission (ESTART) Project FIGURE 7. LINKAGES WITH INVESTMENTS Building Climate Resilience CAWEP efforts are aligned with the new Climate Change Action Plan of The World Bank Group, and all Bank-financed Central Asia is one of the regions most vulnerable to the investments prepared with CAWEP support integrate climate impacts of climate change. Tajikistan and the Kyrgyz Republic change considerations in their designs. The Towards are the most vulnerable countries within Europe and Central Water-Secure Sustainable Economics (2019) brochure Asia. Climate models project average temperatures will identified adaptation measures to build economic and social increase 2.5–6°C by the end of the century – more than the resilience to climate change as one of three key action global average. Climate change is expected to increase the areas for improving water security in the region. frequency and severity of floods and landslides, and droughts and temperature extremes. While precipitation projections Improved early warning systems will be critical for climate are very uncertain, warming is accelerating glacier melting, change adaptation in Central Asia. By supporting national and shifting the seasonal timing of snow and glacier hydrometeorology agencies in all five Central Asian meltwater flows. Without proactive action, climate change countries as well as Afghanistan, CAWEP is contributing will have profound consequences across the region, with to improved transboundary weather and flood forecasting. greatest impacts on the poor. The Central Asia and Afghanistan Flood Early Warning 16 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 System (CAFEWS) concept has been developed to support a regional multi-system platform delivering improved predictions for floods, droughts, and landslides. Such a platform would generate advanced hydrometeorological information products, including seasonal forecasts, and support decision making and IWRM. Hydrometeorological agencies will have access to high resolution forecasts from the ICON numerical weather prediction model – a newer and more robust model than the typically used Consortium for Small-scale Modeling (COSMO) model. Hydrological forecast modules can be improved through incorporation of a new snowmelt module developed for data scarce regions, that captures spatial patterns of snow storage to improve real-time flash flood forecasts as well seasonal flow that were published in the Central Asian Journal of Water predictions. The module has been piloted in Central Asia in Research. In 2021, CAWEP will analyze rural perceptions of the Nura and Karadarya River Basins. gender differences in the context of climate change. Fostering Green Growth CAKN takes an inclusive approach to engaging with higher education institutions across the region and contributing Green growth is a development priority for all Central Asian to professional youth development in IWRM. In 2020, countries and Afghanistan, and all are parties to the 2015 efforts included developing unified curricula and water Paris Agreement that commits to reducing greenhouse management glossaries for Central Asian technical gas emissions by 2030. CAWEP is supporting countries universities, student contests and summer schools. in progressing efforts towards greening their economies. Webinars for teachers and young researchers were A major focus to-date has been promoting renewable conducted online, covering academic writing, approaches energy through analytical work and capacity building. In to conducting online exams, and conducting interviews and Tajikistan, an important study was launched to incorporate assessments. environmental and social criteria into power sector expansion plans. CAWEP contributes to green employment, Regional Engagement landscape restoration, and climate-smart agriculture in Kazakhstan, Kyrgyz Republic, and Tajikistan. Through 2020, CAWEP undertook bilateral consultations with government agencies and development partners in Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan, Social Inclusion and Gender under the Facilitation of Regional Dialogue. Consultations spanned multiple ministries and agencies including CAWEP promotes gender and social inclusion including water, agriculture, environment, energy, finance, and encouraging gender balance in capacity building events foreign affairs. These consultations sought to understand and stakeholder consultations. The Central Asia Knowledge national perspectives on water security priorities, Network (CAKN) promotes gender and youth inclusion in policies, and program, in the content of climate change water resource management across the region by raising and economic development, as well as attitudes and awareness and creating opportunities for knowledge official positions relating to regional water cooperation. exchange among academics and expert communities. In Consultations commenced in Tajikistan, in March 2020, 2020, CAKN convened a series of online conferences on and continued in the Kyrgyz Republic later that month. gender in water resource management including: Women COVID-19 disrupted continued face-to-face consultations, and Access to Water, Women and Water Education, Women, and virtual consultations with Uzbekistan took place Water and Health, Women, Water and Climate Change, and in August 2020, and with Kazakhstan in October and Women and Disaster Risk Reduction. These conferences November 2020. provided opportunities for young scientists, researchers, students, and international and regional experts, to discuss During the consultations, the Towards Water-Secure gender issues in water resource management and to Sustainable Economics brochure was discussed with promote capacity development. Video presentations are government officials, including the identified action available on the CAKN website and on YouTube. CAKN areas. Two of the action areas – WSS and irrigation helped compile a collection of annotated articles providing a modernization – were agreed by government officials to Practical Outlook on Gender Issues in the Water Resources be areas primarily for national action. These areas are Sector, and supported preparation of four scientific articles supported by separate and ongoing CAWEP activities. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 17 convened periodically, and Almaty-based development partner representatives meet more regularly. Discussions focus on water security, but also embrace climate change and nexus issues. The focus is on sharing knowledge, news, and information; identifying collaboration opportunities; and building a shared institutional memory of regional water cooperation. For the energy sector, CAWEP facilitates World Bank engagement in the CAREC ESCC and other high-level meetings. CAWEP has also been active in technical networking and Uzbek Consultations: Virtual Meeting with the Ministry of Agriculture, August 6, 2020 cooperation across the region, including on WSS, irrigation, hydrometeorology, renewable energy, connectivity, and landscape management. A key focus is building trust and confidence between professionals across countries. CAWEP Climate change was endorsed as a priority issue for continues to promote knowledge sharing, capacity building all countries, and one that requires strong regional and cross-border collaboration among key sector agencies, cooperation. All countries noted the importance and universities, and research institutes. value of IFAS institutions for regional cooperation, but equally, all noted the urgent need for institutional reform In the energy sector, CAWEP facilitates engagement with of IFAS. CAWEP will explore opportunities to assist national energy institutions and the regional power system mainstreaming climate change considerations into operator. A CAWEP study estimated that the economic national policies, as well as opportunities to support IFAS benefits from increasing regional electricity trade within institutional reforms. Central Asia could be as high as US$6.4 billion (net present value) between 2020–2030. CAWEP is connecting Under the Facilitation of Regional Dialogue CAWEP Afghanistan and Central Asian energy institutions and continues to coordinate and collaborate with development contributing to consultations on synchronization of grid partners. Regional development partner meetings are codes. 18 | PROGRAM MANAGEMENT, FINANCES, AND COMMUNICATIONS CHAPTER 3 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 19 © Edda Schlager Program Management Financial Overview CAWEP is managed by a program manager, pillar During 2020, US$2.26 million was allocated to new leaders, and a liaison officer (Figure 8). The program activities bringing total allocations to US$11.1 million, or manager oversees program implementation, reporting, 88 percent of the total program budget. US$8.6 million dissemination, and outreach, as well as leading has been allocated to bank-executed activities and around coordination with donor partners and ensuring CAWEP US$2.5 million to three recipient-executed activities stakeholders are kept informed. Pillar leaders provide to support preparation of investments in Kazakhstan, advice implementation of activities and liaise with Tajikistan, and Uzbekistan. task teams to ensure timely and qualitative delivery of activities. The liaison officer supports program 41 percent of allocations to-date (Figure 9) are to the Water coordination, trust fund management, donor coordination, Security Pillar (with over one-third of this being a single monitoring and evaluation, and coordination of recipient-executed grant); 26 percent of allocations are communications. The program management and to the Energy Security Pillar, and 23 percent to the Water- administration costs for 2020 were US$122,461, or Energy Linkages Pillar. Disbursements and commitments to- six percent of total 2020 disbursements. date indicate steady progress (Figure 10), with the apparent slower implementation of Water Security Pillar activities a Strategic guidance is provided to CAWEP by an result of approval late in 2020 of a large recipient-executed Advisory Committee of donor partners and World Bank grant. Cumulative disbursements reached US$4.2 million management. The Advisory Committee met in May and (38 percent of allocated funds), and disbursements for the December in 2020, and approved updates to the CAWEP calendar year were double those in 2019, despite COVID-19 work plan, as well as the scope, timeline and terms of impacts (Figures 11 and 12). reference for a mid-term review (MTR) of the program. Implementation is overseen by a team of World Bank relevant managers and directors (Figure 8). Advisory Committee 23% Management Team 41% 10% Program Manager 26% Liaison Officer Water Security Linkages Water Security Energy Security Linkages Pillar Leader Pillar Leader Pillar Leader Energy Security Program Management and Communications FIGURE 8. CAWEP GOVERNANCE AND MANAGEMENT FIGURE 9. 2020 FUNDS ALLOCATION BY PILLAR 20 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 $5 000 000 $4 000 000 $15 000 000 $3 000 000 $10 000 000 $2 000 000 $1 000 000 $5 000 000 0 0 Water Energy Water-Energy Program 2018 2019 2020 Security Security Linkages Management and Communication Allocated Disbursed Committed Allocated Disbursed Committed FIGURE 10. DISBURSEMENT AND COMMITMENT FIGURE 11. ANNUAL FINANCIAL PROGRESS BY PILLAR $5 000 000 $4 000 000 $3 000 000 $2 000 000 $1 000 000 0 January February March April May June July August September October November December Disbursed in 2018 Disbursed in previous months Monthly disbursement FIGURE 12. DISBURSEMENT DURING 2020 CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 21 Communication and Outreach 2020 Communications Products •• Four quarterly newsletters CAWEP communications are guided by the overarching •• 24 media digests focusing on water, energy, and related goals of strengthening knowledge-sharing and increasing stakeholder understanding of CAWEP work, as outlined in topics the program Communications and Visibility Plan, adopted in •• Blog: “Working Towards Water Security: A Shared 2019. The Outreach and Dissemination activity strengthens Mission to Support Central Asia’s Sustainable Growth” knowledge sharing and increases stakeholder understanding •• Feature story: “Central Asia Electricity Trade Brings of CAWEP efforts through a strategic communications Economic Growth and Fosters Regional Cooperation” framework. The Communication and Visibility Plan reflects the requirements of EU-funded programs. •• Video: “In Central Asia, Modernizing Irrigation for the 21st Century” Online Engagement •• Brochure: “The 2019 Central Asia Irrigation The CAWEP webpage (English and Russian) is updated Modernization Workshop at a Glance” regularly with new outputs and announcements. It received •• Press release: “Global Disruptive Tech Challenge around 12,000 page-views during 2020. CAWEP updates 2021: International Innovators Invited to Help Restore are also shared on social media with 46 Facebook posts (11 Landscape in the Aral Sea Region - launch of a 2021 English and 35 in Russian) reaching over 176,000 people, flagship event” and 75 Twitter posts receiving over 800 likes or retweets with potential reach of 140,000 people. 12,000 176,000 140,000 Looking Ahead A mid-term review of the program will be conducted early in 2021, to identify and address any significant implementation issues, and to adjust strategic direction to the changing external environment, especially in the context of COVID-19 impacts and the increasing urgency of the global climate crisis. Rotations for several World Bank managers and directors with oversight responsibility for CAWEP will occur in early-mid 2021, as will transitions for key donor partner representatives. CAWEP will work to ensure these transitions do not disrupt implementation through internal briefings and regular external engagement. The World Bank and its development partners are strengthening joint focus on green and resilient development, responses to COVID-19, and enhanced efforts to combat and respond to climate change. CAWEP is incrementally adjusting its focus through the design of new activities to be fully aligned with these agendas for the remainder of the program implementation period.  22 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 2020 Program Events and Outreach 3rd online conference Workshop on Tajik national “Women, Water and economic regulation, consultations Health” Kyrgyz Republic JAN FEB Webinar “Practical 4th online conference Video: “In Central Asia, Kyrgyz national online solutions in “Women, Water and Modernizing Irrigation consultations science and education” Climate Change” for the 21st Century” APR MAR 5th online conference Online training Brochure: “The 2019 6th online conference “Women and “Assessing Central Asia Irrigation “Women and water Disaster Risk knowledge Modernization governance at Reduction” online” Workshop at a Glance” local, national and transboundary level” MAY JUN JUL Online seminar “Practical Uzbekistan Uzbek national outlook on gender stakeholder consultations issues in water resources roundtable on management in the Disruptive Technology Central Asia region2 Challenge SEP AUG Blog: “Working Kazakhstan Online webinar Kazakhstan Feature story “Central towards water security: national “How to draw up a stakeholder Asia Electricity Trade A shared mission to consultations ‘Work plan’ and a roundtable on Brings Economic support Central Asia’s ‘Time schedule’ in Disruptive Technology Growth and Fosters sustainable growth” grant applications” Challenge Regional Cooperation” OCT Disruptive Technology Launch of Global Expert online seminar on Kazakh national Challenge webinar Disruptive curricula unification for consultations and Questions & Technology BA university teaching Answers Challenge 2021 programs in water resource management DEC NOV CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 23 ANNEXES © GFDRR / World Bank 24 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 ANNEX 1. FOCUS AREA, THEMES, AND ACTIVITIES BY PILLAR WATER SECURITY PILLAR Focus Area Theme Activity Countries TF No. Strengthening Service Delivery of CA CA, AF 0B0550 National Hydrometeorological Agencies Regional Water Institutions, Capacity, Strengthening Capacity in AF for Greater AF, TJ 0A9176 Management Dialogue Collaboration with TJ on Hydromet, Flood Risk Management and Early Warning Services Regional Water Resources Management CA 0B4565 National Water Institutions, Capacity, in CA Management Dialogue Human Water Security: Strengthening WSS CA 0B1277 at Regional Level Vakhsh Integrated River Basin TJ 0A7025 Data, Diagnostics Management Sub-Basin Water North Aral Sea Engagement KZ 0B2375 Management Supporting Support for Preparation of the North Aral KZ 0B2724 Investments Sea Development and Revitalization Project Sharing Information and Exposure to Pave CA 0A9391 Irrigation Institutions, Capacity, the Way to Irrigation Modernization Modernization Dialogue Strengthening Irrigation Management CA 0B4552 Across CA Institutions, Capacity, CA “Solutions for Water” (S4W) Living Lab CA, AF 0B2730 Capacity Building Dialogue CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 25 ENERGY SECURITY Focus Area Theme Activity Countries TF No. CAREC Energy Sector Coordination and CA, AF 0A7267 Cooperation Institutions, Capacity, Capacity Development for Regional Coopera- CA, AF 0A7333 Dialogue tion in Power System Planning and Operations Regional Power Trade Analysis of Synchronized Operation of AF AF 0A9869 and CA Power Systems CA Regional Electricity Trade and Market CA, AF 0A8743 Data, Diagnostics Development Institutions, Capacity, Energy Sector Strengthening TJ 0A9034 Dialogue Support for Preparation of the Rural TJ 0B1004 Electrification, Sebzor HPP and Khorog- Qozideh Power Transmission Line Projects 0B1244 National Energy Supporting (RETF and BETF) Sector Capacity investments Project Preparation for Uzbekistan UZ 0B3778 Electricity Transmission System Modernization and Market Development 0B4451 (RETF and BETF) Options for Leveraging Commercial TJ 0B4727 Data, Diagnostics Financing for Power Generation in TJ Uzbekistan Small and Medium Hydropower UZ 0A7213 Data, Diagnostics Development Program Renewable Energy Institutions, Capacity, Integrated Hydropower Development in the KG 0A8728 Dialogue Naryn River Basin WATER-ENERGY LINKAGES Focus Area Theme Name Countries TF No. Facilitation of Regional Dialogue and CA, AF 0A7071 Institutions, Capacity, Development Partnerships on Water & Regional Coordination Energy Security in CA Dialogue and Capacity Building CA Knowledge Network CA, AF 0A7242 Data, Diagnostics CA Water and Energy Data Platform CA, AF 0A8939 TJ Integrated Landscape-Catchment TJ 0B0866 Management KG Integrated Landscape-Catchment KG 0B2684 Data, Diagnostics Management Environment Strategic Environmental Assessment of the TJ 0B4132 Management Power Sector Expansion in TJ Disruptive Technologies for Landscape KZ, UZ 0B2683 Institutions, Capacity, Restoration Along the Aral Sea Watershed Dialogue in KZ and UZ 26 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 ANNEX 2. SUMMARY OF ACTIVITIES Water Security Regional Water Management Strengthening Service Delivery of Central Asia National Hydrometeorological Agencies TF0B0550; US$500K; Jun ‘19 – May ‘22 This activity commenced in June 2019 to assist national hydromet agencies deliver improved, demand-driven information services, including weather and hydrologic forecasts to support transboundary cooperation. The activity complements current World Bank and partner projects that are strengthening hydromet services. In 2020, in response to COVID-19 restrictions and impacts, the scope of work was adjusted, the duration was extended, and additional funding for three new sub-activities was provided. The sub-activities are: (i) technical assistance to national hydro-meteorological agencies, (ii) analysis of gaps and development of a strategic capacity building and service delivery plan for Turkmenhydromet, (iii) opportunity assessment for an Amu Darya flood forecasting system, (iv) gap assessment and diagnostic for Kyrgyzhydromet, (v) strategic support for Uzhydromet modernization, and (vi) awareness raising for CAFEWS – a regional multi-system platform for improved flood and drought forecasting to be operationalized under the Bank-financed Central Asia Hydrometeorology Modernization Project. National hydromet agencies have confirmed their engagement in CAFEWS, agreed on system design, and appointed Steering Committee and working group members. Strengthening Capacity in Afghanistan for Greater Collaboration with Tajikistan on Hydromet, Flood Risk Management and Early Warning Services TF0A9176; US$350K; Dec ‘18 – Nov ‘21 This activity is strengthening Afghanistan–Tajikistan collaborations on hydromet, flood risk management, early warning services, and hydrological modeling, as well as improving regional hydromet coordination. An Afghanistan Hydromet Atlas for decisionmakers and hydromet service users is being finalized that compliments the Central Asia Hydromet Atlas with easy-to-understand overviews of weather, water, and climate in Afghanistan, together with details of Afghan hydrological and meteorological services. The activity is supporting CAFEWS through discussions between Afghan and Central Asian hydromet agencies on integration of the Amu Darya Flash Flood Guidance System. Following consultive meetings in 2019 between Afghanistan and Tajikistan, three new monitoring stations were installed on the Panj River in 2020, and an environmental Memorandum of Understanding was signed. National Water Management Regional Water Resources Management in Central Asia TF0B4565; US$400K; Jan ‘21 – Aug ‘22 This activity is building confidence and capacity for safer management of water infrastructure, and improved conjunctive management of surface water and groundwater. Technical support is being provided to assess the needs of agencies responsible for dam safety. Support is expected to help improve standards and to develop codes of practice, guidance, and engineering tools for monitoring of dam performance and operations. National institutional, legal and organizational aspects of groundwater management will be reviewed, and the state of transboundary aquifers will be assessed. Following these reviews, events will be convened to build the institutional capacity of relevant agencies. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 27 Human Water Security: Strengthening WSS at the Regional Level TF0B1277; US$465K; Oct ‘19 – Dec ‘21 This activity is strengthening WSS services and building national and regional WSS resilience to improve social stability and human capital. The 1st phase scoped areas of engagement through the Towards Sustainable and Climate-Resilient Water Supply and Sanitation Services in Central Asia Conference (Tashkent, 2019), launched Workshop on economic regulation. Kyrgyz Republic, February, 2020. technical assistance in the Kyrgyz Republic and Tajikistan, and convened a workshop in the Kyrgyz Republic (February 2020) on economic regulation. The 2nd phase, from July 2020, is focused on strengthening national institutions in the Kyrgyz Republic, Tajikistan, and Uzbekistan. In the Kyrgyz Republic, international experts complemented work under the Sustainable Rural Water Supply and Sanitation Development Project to: (i) develop an institutional development plan, (ii) develop a new WSS law, (iii) review and update design norms, and (iv) advance digitalization in WSS. In Tajikistan, the activity is supporting: (i) a sector governance review and development of a reform vision; (ii) a WSS public expenditure review, and (iii) introduction and piloting of monitoring tools. In Uzbekistan, the activity is revising the tariff calculation tool and the tariff setting process. Sub-Basin Water Management Vakhsh Integrated River Basin Management TF0A7025; US$226K; Apr ‘18 – Jun ‘20 This activity completed a needs assessment, prepared an inventory of infrastructure assets, and prepared a basin action plan, for the Lower Vakhsh Basin in Tajikistan. The work is informing investment and technical assistance requirements for integrated management of the basin, including design of a US$50 million IDA-EU-financed Tajikistan Resilient Irrigation Project. North Aral Sea Engagement TF0B2375; US$300K; Mar ‘20 – Jun ‘22 This activity is supporting preparation of the US$161.5 million North Aral Sea Development and Revitalization Project that aims to improve water resources management in North Aral Sea-Syr Darya Basin, and the planning and development of natural resources based economic activities in Kyzylorda region of Kazakhstan. The lending project will help restore wetlands and reduce the impacts of salt and dust blown from the dry seabed. The supporting activity is preparing a water balance for the Syr Darya Basin. An interim report with preliminary results was discussed with project stakeholders. The water balance will be complemented with Earth observations using a “Scalable Water Balance from Earth Observations” tool. Support for Preparation of the North Aral Sea Development and Revitalization Project TF0B2724 RETF US$1,500K; Dec ‘20 – Jun ‘22 This activity supports the Government of Kazakhstan’s preparation of the North Aral Sea Development and Revitalization Project. It is financing the project feasibility study, detailed designs, and environment and social impact assessments. 28 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Irrigation Modernization Sharing Information and Exposure Visit to Pave the Way to Irrigation Modernization TF0A9391; US$222K; Jan ‘19 – Jun ‘20 This activity, completed in June 2020, supported exposure, learning and adoption of irrigation sub-systems and on-farm modernization concepts, focused on technical and managerial improvements to resource use and service delivery. The Towards Regional Initiatives for Modernizing Irrigation in the 21st Century (Almaty, 2019) with nearly 100 participants discussed irrigation modernization and reforms, with peer-to-peer learning and knowledge exchange. The brochure Central Asia Modernization Workshop at a Glance and video summarize the key workshop messages. Priority areas identified at the workshop are now supported under new activities on regional water resource management and irrigation modernization. Strengthening Irrigation Management Across Central Asia TF0B4552; US$400K; Nov ‘20 – Jun ‘22 This activity is focused on improving water productivity and irrigation management, complementing current World Bank irrigation investments. Technical assistance and analyses include: (i) assessment of progress and challenges in sustainable irrigation and drainage for state and non-state actors, to inform water policy in Kazakhstan and Uzbekistan, (ii) public expenditure reviews in Tajikistan and Uzbekistan, and (iii) just-in-time support to governments and task teams on irrigation innovation including energy efficiency, water efficient technologies, and options for public-private partnerships. Capacity Building Central Asia “Solutions for Water” (S4W) Living Lab Project TF0B2730; US$250K; Apr ’20 – Jan ‘22 This activity is improving cross-country cooperation and is linking water users, academia, students, local authorities, and small business through a series of “Living Labs”. In the Living Labs, project teams assemble stakeholders to find innovative solutions to local water management problems. Solutions are piloted and then scaled-up or/and disseminated for implementation elsewhere. The 1st project – on takyr rehabilitation – proposed methods for takyr conservation, protection and restoration. Pilot testing of these methods commenced in July 2020 and interim results were presented at a conference in December 2020 in Tajikistan. Project proposals under consideration include a cross-border project to address sedimentation in the Tuyamuyun Hydroelectric Complex, and options for accelerated restoration of degraded lands. Energy Security Pillar Regional Power Trade CAREC Energy Sector Coordination and Cooperation TF0A7267; US$200K; Mar ‘18 – Apr ‘21 CAWEP engages with CAREC to enhance regional energy sector dialogue and to coordinate donor support. This includes engagement with the CAREC ESCC – a knowledge sharing forum for CAREC countries and development partners. In 2019, The World Bank contributed to the CAREC Mid-Term Review and the CAREC Energy Sector Strategy 2030. In October 2020, Energy Sector Consultations for Senior Officials presented priorities for regional energy sector cooperation and the ESCC Work Program 2020–2022. During the consultations, six working groups were established, one for each of the strategic priority areas (Energy Security & Regional Interconnections, Energy Market Reform, Sustainable Energy) and one for each of the cross-cutting themes (Knowledge & Partnerships, Private Sector Enhancement, Women in Energy). A new CAREC energy web platform will be established to facilitate remote working. A high-level assessment was launched of the technical feasibility and economic viability of hydrogen production, use and, exports in Central Asia. This work will: (i) identify sectors that could benefit from local green hydrogen production and export; (ii) estimate green hydrogen and hydrogen-derived fuel CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 29 production costs; (iii) describe possible green hydrogen applications for duller exploration; and (iv) identify factors that could drive local competitiveness of hydrogen production equipment. Capacity Development for Regional Cooperation in Power System Planning and Operations TF0A7333; US$199K; May ‘18 – Mar ‘20 This completed activity improved the sustainability and organizational capacity of CDC Energia (regional power system operator) through trainings and preparation of a long-term capacity development plan that described: (i) analysis of CDC Energia’s functions and responsibilities; (ii) assessment of CDC Energia’s training needs; (iii) feedback of the 1st training workshop and study trip; (iv) lessons learned for organization of next training workshops; (v) suggested agendas for training workshops; and (v) assessment of training facility/equipment at CDC Energia. The activity helped national dispatch centers understand the benefits of regional coordination and developing common operational rules/procedures to improve planning and day-to-day operations of the regional power system. Training workshops were held for dispatch center experts in Tashkent, Uzbekistan, in 2018 and 2019. The head of CDC Energia visited a dispatch center and training center at Russian system operator in 2018, and a power system operations training facility was established in 2019 and equipped by USAID. Analysis of Synchronized Operations of Afghanistan and Central Asia Power Systems TF0A9869; US$100K; Mar ‘19 – Jun ‘21 This activity supports The World Bank-financed Herat Electrification Project in Afghanistan by development of a roadmap for synchronizing the Afghan and Central Asian power systems. It is enhancing DABS capacity to manage grid synchronization and informing preparation of the Afghan grid code and relevant policies and investment plans. It facilitates dialogue between DABS, CDC Energia and Central Asian national dispatch centers. Finalization of the grid code and consultations with Central Asian countries were postponed to 2021 because of COVID-19 pandemic restrictions. Central Asia Regional Electricity Trade and Market Development TF0A8743; US$300K; Oct ‘18 – May ‘21 This activity is financed by PACT and coordinated with the USAID work on regional power system modelling and electricity market design. It assessed opportunities for intra- and inter-regional energy market integration and trade, reviewed energy demands, explored trade options, assessed trade barriers, and developed a sector action plan. A regional Electricity Planning Model for Central Asia, Afghanistan and Pakistan assessed the economic benefits of regional electricity trade for 2019–2030 under business-as-usual, trade and existing infrastructure, trade and CASA-1000, and trade and CASA-1000 and TUTAP scenarios. A feature story highlights key findings and these will be disseminated at regional conferences. The economic benefits of increased regional trade between 2020–2030 are up to US$6.4 billion (discounted). With CASA-1000 and TUTAP to connect Central Asia power grids with South Asia, an additional US$2.6 billion in benefits accrue. National Energy Sector Capacity Energy Sector Strengthening TF0A9034; US$230K; Nov ‘18 – Oct ‘21 This activity in Tajikistan informed the design of measures to improve the financial and operational performance of Barki Tojik and to unblock regional power trade by strengthening the Barki Tojik financial standing and institutional capacity. The activity helped reconnect Tajikistan to the region power system by developing regulatory frameworks for energy pricing and power purchase agreements. It helped design the Program of Financial Recovery of Barki Tojik for 2019–2025 approved by the Government in April 2019, and informed design of the US$134 million World Bank-financed Power Utility Financial Recovery Program. Key work included: (i) financial analyses; (ii) recommendations for improved operational efficiency; (iii) financial model development; (iv) corporate governance review and recommendations; (v) drafting of regulatory documents; (vi) social impact analyses; and (vii) legal and regulatory analyses to remove bottlenecks to regional power trade expansion. The activity was extended to: (i) evaluate the impacts on hydroelectricity generation of reservoir sedimentation, and (ii) update financial and operational recommendations in the light of COVID-19 pandemic impacts. 30 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Support for the Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects TF0B1004 RETF US$500K; TF0B1244 BETF US$150K; Oct ‘19 – Jun ‘21 The RETF activity supported feasibility studies, environmental and social impact assessments, biodiversity management plans, Environmental and Social Management Frameworks, and Resettlement Policy Frameworks, for the Sebzor Hydropower Project, the Khorog-Qozideh Transmission Line Project, and the Rural Electrification Project. Remaining tasks include disaster risk screening and mitigation assessments, preparation of procurement documents, knowledge sharing on electricity grid operations and maintenance, and capacity building (for planning and operations, transmission and distribution, energy security and efficiency). The work is informing preparation and implementation of US$100 million in sector finance across multiple development partners. Project Preparation for Uzbekistan Electricity Transmission System Modernization and Market Development TF0B3778 RETF US$500K; TF0B4451 BETF US$100K; Nov ‘20 – Sep ‘21 These activities, financed by PACT, are helping to modernize the planning and operations of Uzbekistan’s power transmission system through introduction of digital technologies and the strengthening of institutional capacity of the Uzbekistan National Electric Grid JSC and the regional system operator (CDC Energia). The RETF activity is preparing the feasibility study and technical specifications on introduction of digital technologies into the national power grid and is strengthening the capacity of the national grid company and the regional system operator for design, operations, and maintenance of digital technologies. The activity informs the design of a US$115 million component of the Uzbekistan Electricity Sector Transformation and Resilient Transmission Project. Options for Leveraging Commercial Financing for Power Generation in Tajikistan TF0B4727; US$160K; Dec ‘20 – Dec ‘21 This activity is informing the Program of Financial Recovery of Barki Tojik for 2019–2025 to identify options for commercial financing for rehabilitation of existing generation assets and construction of new generation projects. The activity will review policy, legal, and regulatory obstacles, and evaluate options including public-private partnerships, ring-fenced project financed transactions, private equity and commercial debt, and sovereign guarantees. The impact of these options on electricity tariff setting will be assessed based on indicative terms and financing, and a roadmap with policy, legal, and regulatory recommendations will be developed for the Government’s Generation Expansion Plan. Renewable Energy Uzbekistan Small and Medium Hydropower Development Program TF0A7213; US$231K; May ‘18 – Jun ‘20 This activity built the capacity of Uzbekhydroenergo and the Hydro Project Institute for developing small and medium hydropower programs. Based on a regulatory and institutional assessment, an action plan was developed with recommendations improving managerial skills and technical capacity (for assessment of hydropower potential and technical equipment, use of advanced technologies, tools and digital maps, natural resources studies, and creating incentives for private investment). The activity contributed to Uzbekhydroenergo’s public-private partnership and investment plans by identifying potential sites for construction of new small and medium HPP and by preparing concepts and pre-feasibility studies. A Microsoft Excel financial model and user guide, tailored for the Uzbekistan market, were developed to evaluate the financial viability of projects. A document was prepared to guide simple and consistent assessments of river basin hydropower potential, and water quality and other environmental issues. A study tour to Italy and a workshop were conducted in 2019. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 31 Integrated Hydropower Development in the Naryn River Basin TF0A8728; US$200K; Oct ‘18 – Sep ‘20 This activity assessed the viability and enabling framework for hydropower development in the Naryn River Basin in the Kyrgyz Republic, considering national social and economic development goals, and using a river basin approach. The assessment showed that the current legal framework inhibits third party investment. To close the supply gap, the activity recommended: (i) improving the long-term sustainability of the energy sector including through tariff reforms, efficiency increases, and demand management; (ii) preparing a development action plan including an electricity master plan and studies of priority projects; and (iii) improving the framework for investment. The activity reviewed prospective projects using a multi-criteria analysis, and identified several that require preparation of feasibility studies, environmental and social impact assessments, market studies, and business plans. Results were shared with government and development partners. Water-Energy Linkages Pillar Regional Coordination and Capacity Building Facilitation of Regional Dialogue and Development Partnerships TF0A7071; US$450K; Mar ‘18 – May ‘22 This activity continues to support CAWEP engagement with governments and development partners. The activity has two components: regional dialogue among countries to develop a regional engagement strategy, and coordination between development partners to develop a shared long-term vision. A brochure Towards Water-Secure Sustainable Economics was used in country consultations on water security to better understand national and regional water security priorities and to identify opportunities for bilateral or regional coordination and cooperation. Two of the action areas identified in the brochure – WSS and irrigation modernization – were agreed by government officials as areas primarily for national action. The 3rd action area – investing in adaptation measures to build resilience to climate change – is a shared regional agenda. Three additional action areas consistently raised during the consultations are: (i) reform of IFAS institutions and governance, (ii) water data, accounting and forecasting, and (iii) joint operation and management of shared water infrastructure. A regional engagement strategy will be prepared in 2021 to guide the ongoing engagement on regional water security. Central Asia Knowledge Network TF0A7242; US$400K; Mar ‘18 – Sep ‘21 This activity fosters cooperation and knowledge exchange between local and regional institutions and practitioners, on water resource management, energy, and climate change, and works at three levels: (i) strengthening national sectoral and cross-sectoral capabilities, (ii) enabling deeper regional cooperation, and (iii) developing academic and research capacity, connecting youth with practitioners, and promoting gender-related efforts in IWRM. The Knowledge Network maintains four communities of practice: the Central Asia Youth Forum on Water, the Academic Network in Central Asia, the Regional Cross- Sectoral Working Group in Kazakhstan, and the National Cross-Sectoral Working Group in the Kyrgyz Republic. Numerous online trainings and knowledge-sharing events were conducted, covering aspects of online education and IWRM. Support was provided to young female researchers publishing scientific articles on gender issues in IWRM. Experts in the Regional Central Asian Academic Community of Practice developed Unified Discipline Syllabuses packages on hydro amelioration and water engineering and presented these during an online conference. A Russian glossary of water management terms was developed to improve consistency of water education and will be extended to become a multi-lingual glossary. A review of academic and research capacity in Turkmenistan was undertaken to extend the 2019 regional review. Central Asia Water and Energy Data Platform TF0A8939; US$35K; Mar ’18 – Sep ‘19 This activity developed the Central Asia Water and Energy Data Platform to facilitate access to information and support outreach and dissemination. It includes interactive maps on environment, social, economic, climate, water, and disaster topics, with spatial datasets available for download. The portal synthesizes data from the Central Asia Hydrometeorology 32 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 Modernization Project and the Climate Adaptation and Mitigation Program for the Aral Sea Basin and links to other databases. The Kazakh-German University, Almaty, Kazakhstan uses the e-learning video modules on “How to Use” the Central Asia Water and Energy Data Portal in the Integrated Water Resource Management Masters’ program and the “Young Leaders – Vector of Change” Summer School. Environment Management Tajikistan Integrated Landscape-Catchment Management TF0B0866; US$480K; Aug ‘19 – Jun ‘22 This activity is undertaking a cost-benefit analysis of integrated landscape restoration and catchment area management to reduce sediment inflow to Nurek and Baipaza reservoirs on the Vakhsh River in Tajikistan. The activity is: (i) collecting baseline data, (ii) undertaking economic evaluations, and (iii) building capacity. Field visits in 2020 in the Vakhsh area collected water and sediment samples, and data on ecosystem services. Kyrgyz Republic Integrated Landscape-Catchment Management TF0B2684; US$400K; Apr ‘20 – Mar ‘22 This activity is undertaking a cost-benefit analysis of integrated landscape restoration and catchment management to reduce sediment inflow to Toktogul Reservoir in the Kyrgyz Republic, and will complement the National Water Resources Management Project financed by Switzerland to provide government with detailed information on erosion and sedimentation and the links between catchment and reservoir condition. Disruptive Technologies for Landscape Restoration Along the Aral Sea Watershed TF0B2683; US$400K; Apr ‘20 – Feb ‘22 This activity is developing innovative approaches for restoration of degraded landscapes in Kazakhstan and Uzbekistan with potential scale-up across Central Asia. The activity is informing the Resilient Landscape Program in Central Asia (RESILAND CA+) and other operations under preparation. The activity consists of an innovation challenge, a four-month online mentorship program, and preparation of an e-book on innovative approaches. The technology challenge sought proposals for grants to support innovations across four themes: agriculture and land management, sustainable forestry, socio-economic development, and information and knowledge. The challenge was implemented by the Kazakh-German University, the Global Landscape Forum, and Plug&Play (private sector accelerator). Virtual roundtables were conducted with Uzbekistan and Kazakhstan stakeholders, and a webinar and a Questions & Answers session were conducted on landscape restoration. Following a call for proposals and international panel shortlisted 24 of 159 proposals from 38 countries, with winners to be selected at a grand finale event in 2021. Tajikistan – Strategic Environmental and Social Assessment of the Power Sector Expansion TF0B4132; US$350K; Nov ’20 – Dec ‘21 This activity is helping the Government of Tajikistan incorporate environmental and social criteria into power sector expansion plans, both for major hydropower projects with significant environmental and social risks, as well as thermal power projects that require significant cooling water. The activity will ensure that selection of projects to reduce winter energy shortages consider long-term environmental and social sustainability. Key activities include: (i) assessing environmental and social impacts of base-case electricity generation expansion plan; (ii) determining environmental and social criteria for electricity generation projects selection; (iii) guiding energy project development and appraisal by national and regional authorities considering the requirements of international financial institutions and private sector lenders; (iv) engaging stakeholders; (v) developing an environmental and social GIS database for Tajikistan; and (vi) providing potential investors with information on appropriate locations and types of energy facilities. CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 33 ANNEX 3. RESULTS FRAMEWORK CAWEP tracks indicators annually against target values from the 2017 Concept Note. PROGRAM PROGRESS AND OUTCOMES Cumulative Actual TARGET Indicator Outputs ‘18 ‘19 ‘20 ‘21 ‘22 Component: Strengthen the enabling environment to promote water and energy security at regional level and in beneficiary countries. Baseline: Disparate national-level investments and fragmented regional cooperation. Weak regional institutions are not fulfilling mandates to promote regional cooperation. HEP investment plans negatively impact on already tense neighborly relationships. No. of policies, sector strategies, Water security brochure; Program for Financial regional institutional frameworks Recovery of Barki Tojik. Concept for flow forecasting being developed that are based 0 2 3 7 and flood warning advisory system for the Amu Darya on recommendations of CAWEP and Syr Darya Basins funded analytical work No. of institutions demonstrating CDC Energia (regional), Uzbekhydroenergo, improved management 0 4/1 4/1 3 Hydroproject design institute, Barki Tojik performance (of which regional) No. of joint decisions (or AF-TJ MOU on environment protection signed agreements) to move forward 0 0 1 4 September 2020 for 5-year duration reached World Bank investments (US$B) TJ Power Utility Financial Recovery Prog (US$134M IDA, that reflect transboundary US$305.1M govt co-financing), TJ Rural Electrification consideration that are based on/ Proj (US$31.7M IDA), North Aral Sea Development & include recommendations from Revitalization Proj (US$161.5M IBRD, US$30M govt 0 0.13 0.56 0.8 CAWEP funded activities co-financing), TJ Resilient Irrigation Proj (US$30M IDA, US$20 EU), TJ Resilient Landscape Restoration Proj (US$90M IDA), UZ Electricity Sector Transformation & Resilient Transmission Proj (US$115M IDA, Comp 1) 34 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 PILLAR PROGRESS AND OUTCOMES: WATER SECURITY Cumulative Actual TARGET Indicator Outputs ‘18 ‘19 ‘20 ‘21 ‘22 Component: Data and Diagnostic Analyses. Baseline: Opportunities and constraints to improve water productivity and use efficiency are not systematically analyzed, and not identified at the regional level and not owned by riparian governments. National action plans to improve agricultural water productivity do not exist. No. analytical outputs related Needs assessment, maps and schematic layout for to water use efficiency, water 0 3 3 5 Lower Vakhsh Basin; report on AF-TJ cooperation on balance, or IWRM data exchange, flood control and early warning Component: Institutions, Capacity and Dialogue. Baseline: Institutional capacity varies between countries. Limited institutional linkages between riparian states on agricultural water management. Active donors in the region and in countries have disparate coordination. No. learning activities that Regional workshops: WSS, irrigation modernization; strengthen capacity of water 0 4 5 5 AF-TJ meetings on hydromet information exchange; institutions KG economic regulation workshop No. learning activity participants 263/ 285/ 0 - (% female) 15 16 % participants who consider trainings as relevant & have 0 77 74 integrated them in their work Component: Supporting Investments. Baseline: Few current investment decisions consider transboundary implications of water use and/or quality impacts. No. national-level investments TJ Resilient Irrigation Proj 0 0 1 1 1 1 based on CAWEP diagnostics No. investments under North Aral Sea Development and Revitalization Proj 0 0 1 1 preparation No. potential beneficiaries of 810K Potential beneficiaries under North Aral Development - investments (% female) (50%) & Revitalization Proj CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 35 PILLAR PROGRESS AND OUTCOMES: ENERGY SECURITY Cumulative Actual TARGET Indicator Outputs ‘18 ‘19 ‘20 ‘21 ‘22 Component: Data and Diagnostic Analyses. Baseline: Opportunities and constraints to improve energy sector efficiency are not systematically analyzed and/or are not owned by riparian governments. National energy sector plans do not exist in all countries. No. of quality and relevant Program for financial recovery of Barki Tojik; analytical outputs related Financial model and expenditure program for asset to sector efficiency, system maintenance; Report on improvement of power planning, service reliability, 3 4 6 6 purchase agreements in TJ; Regional power system harmonization of trade model for CA, Report on potential electricity trade regulations and interconnections, Analysis of potential of hydropower development in KG Component: Institutions, Capacity and Dialogue. Baseline: Institutional capacity varies; in some countryies institutions are weak with poor financial performance. Coordination among countries initiated. CAREC has regional mandate. Donors have disparate coordination. No. institutions supported by CDC Energia, Uzbekhydroenergo JSC, Hydroproject capacity strengthening (of which 0 7/1 8/1 6/1 Design Institute, KEGOC (KZ), NESK (KG), Barki Tojik regional) (TJ), DABS (AF), National Electric Grid (UZ) No. regional frameworks supporting energy security 1 formulated with CAWEP support No. learning or dialogue activities Study tour for CDC Energia; study tour & workshop for that strengthen capacity of Uzbekhydroenergo and Hydroproject design institute; 2 6 7 8 institutions trainings for national institutions, CAREC ESCC and Senior Officials meetings No. learning/dialogue activity 149/ 267/ 428/ Includes participants in above workshops/meetings 120 participants (% female) 11 23 29 % of participants (% women) who consider learnings as relevant 70 and have integrated them in their work Component: Supporting Investments. Baseline: CA power system is weak and disintegrating since 2009 causing financial losses. Few investment decisions consider transboundary aspects. TJ and KG have winter energy deficit. No. energy investments based on CAWEP diagnostics (of which 2 regional) No. energy investments under TJ Power Sector Financial Recovery Proj, TJ preparation (of which regional) 0/0 1/0 3/0 4/1 Rural Electrification Proj, UZ Electricity Sector Transformation and Resilient Transmission Proj No. potential beneficiaries of 40K investments supported (% - /49 female) 36 | CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 PILLAR PROGRESS AND OUTCOMES: WATER-ENERGY LINKAGES Cumulative Actual TARGET Indicator Outputs ‘18 ‘19 ‘20 ‘21 ‘22 Component: Data and Diagnostic Analyses. Baseline: No robust recent analysis of links between energy and water. Climate change implications for energy and water resources management are poorly understood at national and regional levels. No. analytical outputs related to Reports: “Stocktaking review and mapping of IWRM water-energy linkages, climate knowledge and capacity building initiatives by 0 2 2 3 change, regional IWRM international partners in CA”; “Review of water-related academic and research capacity in CA countries” No. platforms for data access, Central Asia Water and Energy Data Portal analysis or sharing established at 0 1 1 1 regional level No. platform users (% female) 400 400 - /50 /50 % users satisfied with platform 85 85 90 access & contents Component: Institutions, Capacity and Dialogue. Baseline Regional institutions are weak; national institutions lack physical and human resource capacity to consider energy-water linkages and work cross-border. Systems for data sharing and accessing publicly available data sets are weak. No. regional institutions supported through capacity 2 2 strengthening activities No. regional frameworks Water security brochure 1 1 1 formulated with CAWEP support No. multi-country learning Study tour of Tajik institute to Uzbek TIIAME; cross- activities 1 6 10 5 country knowledge exchanges, webinars on online tools No. participants in multi-country Study tour of Tajik institute to Uzbek TIIAME; cross- 188/ 293/ learning activities (% female) 5 - country knowledge exchanges, webinars on online 42 45 tools % participants (% female) who consider trainings relevant and 75 have integrated them in their work No. dialogue events promoting 13 partner meetings; 1 pre-conference event for regional cooperation (of which high level conference in TJ; 2 Youth to Youth IWRM 8/7 16/15 22/17 10 regional) Initiatives; pre-conference academic event, bilateral consultations No. dialogue event participants 164/ 269/ 441/ - Participants in above-mentioned events (% female) 70 50 48 % participants (% female) who consider outcomes of dialogue 75/ 20 events as relevant and have integrated them in their work. Component: Supporting Investments. Baseline: Earlier regional nexus projects not successful in achieving regional outcomes or cooperation. Few investment decisions consider transboundary implications or the nexus. No. regional investments under 1 preparation No. potential beneficiaries of investments supported (% - female). CENTRAL ASIA WATER AND ENERGY PROGRAM | Annual Report 2020 | 37