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Institutional Strengthening of the Committee for Water Resources

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Institutional Strengthening of the Committee for Water Resources Ministry of Agriculture Committee for Water Resources REPUBLIC OF KAZAKHSTAN Asian Development Bank TA № 4484 KAZ Institutional Strengthening of the Committee for Water Resources DRAFT FIN AL REPORT 12 October 2005 prepared by Fritz Schwaiger Zhana Zaitseva Valery Torubara Gulnar Tulebayeva Igor Petrakov Galina Blinova Dauren Kassabekov ADB – Republic of Kazakhstan Institutional Strengthening of the Committee for Water Resources Draft Final Report Rate of Exchange (12.09.2005) Currency unit = Tenge (Т) Tenge 1,00 = $0,0074 $ 1,00 = 135,00 Tenge List of Acronyms and Terms ADB - Asian Development Bank Akim - Head of rural, regional government Akimat - Rural, regional government AMC - Antimonopoly Committee AWC - Association of Water Consumers BR - Building Regulations BWO - Basin-water Organizations BWCD - Basin-water Control Departments CAEC - Central Asian Economic Community CAR - Central Asian Region CEP - Caspian Ecological program CIS - Commonwealth of Independent States CWR - Committee for Water Resources of the Ministry of Agriculture EA - Executive Agency EBRD - European Bank for Reconstruction and Development ESEI - Evaluation of Side Environmental Impact FSU - Former Soviet Union GDP - Gross domestic product GEF - Global economic fund GIS - Geo-information systems GWC - Group of Water Consumers GWP - Group water-pipe ICSD - Intergovernmental Commission for Sustainable Development ICWC - Intergovernmental Coordinating Waterworks Commission IDB - Islam Development Bank IFAS - International Fund for Aral saving IWRM - International Water Resources Management JSC - Joint-stock company Kolkhoz - Cooperative farm (attached to FSU) MA - Ministry of Agriculture Maslikhat - Local legislative body MEBP - Ministry of Economy and Budget Planning MEMR - Ministry of Energy and Mineral Resources MEP - Ministry of Environment Preservation MES - Ministry of Education and Sciences MF - Ministry of Finance MH - Ministry of Health MIT - Ministry of Industry and Trade MM - Mass Media MPC - Maximum permissible concentration MPD - Maximum permissible discharge 2 ADB – Republic of Kazakhstan Institutional Strengthening of the Committee for Water Resources Draft Final Report NGO - Nongovernmental organization NPEPA - National Program for Environment Preservation Activities Oblast - Regional Administrative Area (province) OECD - Organisation for Economic Co-operation and Development Okrug - Group of Inhabited locality OM - Operation and Maintenance OSCE - Organization for Security and Cooperation in Europe PA - Public Association PC - Public Corporation PI - Planning Institute RAPEP - Regional Action Plan for Environment Preservation REC - Regional Ecological Center Region - Region Administrative Area RF - Russian Federation RIL - Rural inhabited locality RK - Republic of Kazakhstan RPE - Republican Public Enterprise RS - Requirements specification SAO - Society of apartments owners SC - Sanitation service of MH SCDA - Short-term consulting development assistance Sovkhoz - Public farm (attached to FSU) SPDW - Sectoral Program “Drinking Water” SPRZD - State program of rural zones development STTA - Short-term Technical Assistance TA - Technical Assistance TEG - Technical and Economic Grounds UNDP - United Nations Development Program UNO - United Nations Organization USA - United States of America VAT - Value added tax Vodokanal - Water Industry and Sewerage Enterprise WB - World Bank WHO - World Health Organization WR - Water resources WSS - Water supply and sanitation 3 ADB – Republic of Kazakhstan Institutional Strengthening of the Committee for Water Resources Draft Final Report Table of Contents 0 EXECUTIVE SUMMARY............................................................................... 8 1 INTRODUCTION ......................................................................................... 21 1.1 BACKGROUND ........................................................................................ 21 1.2 OBJECTIVES........................................................................................... 22 1.3 SCOPE OF WORKS................................................................................... 22 1.3.1 Original .......................................................................................... 22 1.3.2 Agreed Revision ............................................................................ 23 1.4 PROJECT TEAM AND STTA ACTIVITIES..................................................... 23 1.5 DATA SOURCE ........................................................................................ 24 1.6 GRATITUDE ............................................................................................ 24 2 COUNTRY PROFILE AND SECTOR INFORMATION ............................... 26 2.1 COUNTRY PROFILE ................................................................................. 26 2.1.1 Geographical Location and Topography ....................................... 26 2.1.2 Climate and Vegetation ................................................................. 27 2.1.3 Social and Economic Development............................................... 28 2.1.4 State Governance and Institutions ................................................ 32 2.2 THE WATER SECTOR OF KAZAKHSTAN...................................................... 35 2.2.1 Historic Development .................................................................... 35 2.2.2 Water Resources........................................................................... 37 2.2.3 Problems in the Water Sector........................................................ 41 3 WATER RESOURCES MANAGEMENT IN KAZAKHSTAN ...................... 45 3.1 ORGANIZATIONS IN CHARGE.................................................................... 45 3.1.1 Legal Background.......................................................................... 45 3.1.2 Basic principles of public administration regarding use and protection of water resources (Article 34, Water Code of RK) ..................... 45 3.1.3 Main tasks of public administration regarding use and protection of water resources in accordance with the existing legislation (Article 35, Water Code of RK): ................................................................................................ 47 3.1.4 Responsibilities of the Government regarding use and protection of water resources (Article 36, Water Code of RK):......................................... 48 3.1.5 Responsibility of the authorized body (CWR of MoA) regarding use and protection of water resources (Article 37, Water Code of RK) .............. 49 3.1.6 Responsibilities of Basin Water Departments regarding use and protection of water resources (Article 40, Water Code of RK) ..................... 50 3.1.7 Local representative (maslikhats) and executive (akimats) bodies administration of water issues...................................................................... 52 3.1.8 Basin Council and Basin Agreement............................................. 52 4 ADB – Republic of Kazakhstan Institutional Strengthening of the Committee for Water Resources Draft Final Report 3.1.9 Levels of Water Body Administration............................................. 53 3.2 PRINCIPLES OF WATER RESOURCES AND WATER USE MANAGEMENT ........ 54 3.2.1 Basic Principles ............................................................................. 54 3.2.2 Sustainability Criteria..................................................................... 55 3.2.3 Agenda 21 ..................................................................................... 56 3.2.4 Proposed Water Policy Objectives ................................................ 56 3.2.5 Requirements for Implementation ................................................. 61 3.3 APPLICATION OF IWRM AS A SHOW CASE ON IRTYSH RIVER.................... 61 3.3.1 Why the Irtysh River? .................................................................... 61 3.3.2 Multilevel Management Systems................................................... 61 3.3.3 Transboundary issues ................................................................... 63 3.3.4 Required Institutional and Organizational Arrangements .............. 65 3.3.5 Social aspects, stakeholder involvement, awareness building...... 66 3.3.6 Organizational issues .................................................................... 67 3.4 REVIEW OF CURRENT WATER TARIFFING POLICY ..................................... 67 3.4.1 Tariff setting procedure.................................................................. 67 3.4.2 Tariff Calculation Methodology...................................................... 68 3.4.3 The Situation of Vodokanals.......................................................... 72 3.4.4 Shortcomings of Current Tariff Setting Methodology..................... 74 3.4.5 A Possible Mechanism for Setting Tariffs Right ............................ 74 3.5 INTERNATIONAL ASSISTANCE TO THE WATER SECTOR OF KAZAKHSTAN .... 75 4 INSTITUTIONAL CAPACITY OF THE CWR .............................................. 77 4.1 ORGANISATIONAL STRUCTURE OF CWR.................................................. 77 4.1.1 The Management .......................................................................... 77 4.1.2 Departments.................................................................................. 82 4.2 CWR FUNCTIONS................................................................................... 82 4.2.1 CWR Head Quarters ....................................................................
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