WATER GLOBAL PRACTICE Promoting Development in Shared River Basins Case Studies from International Experience Mehmet Altingoz, Antti Belinskij, Christian Brethaut, Afonso do Ó, Suren Gevinian, Glen Hearns, Marko Keskinen, Melissa McCracken, Vadim Ni, Niko Soininen, and Aaron T. Wolf About the Water Global Practice Launched in 2014, the Word Bank Group’s Water Global Practice brings together financing, knowledge, and implementation in one platform. By combining the Bank’s global knowledge with country investments, this model generates more firepower for transformational solutions to help countries grow sustainably. Please visit us at www.worldbank.org/water or follow us on Twitter @WorldBankWater. Promoting Development in Shared River Basins Case Studies from International Experience Mehmet Altingoz, Antti Belinskij, Christian Bréthaut, Afonso do Ó, Suren Gevinian, Glen Hearns, Marko Keskinen, Melissa McCracken, Vadim Ni, Niko Soininen, and Aaron T. Wolf © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work is given. Please cite the work as follows: Altingoz, Mehmet, Antti Belinskij, Christian Bréthaut, Afonso do Ó, Suren Gevinian, Glen Hearns, Marko Keskinen, Melissa McCracken, Vadim Ni, Niko Soininen, and Aaron T. Wolf. 2018. “Promoting Development in Shared River Basins: Case Studies from International Experience.” Washington, DC, World Bank. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Cover photo: Aldeadavila Dam on the Douro River on the border between Spain and Portugal. © Rusm/ iStock. Cover design: Jean Franz, Franz & Company, Inc. Contents Preface xi Abbreviations xiii Chapter 1 Kura-Araks Basin 1 Summary: Three-Stage Process of Coordinated Basin Development 1 Part A: The Arpacay/Akhuryan Dam between Armenia and Turkey 1 Identification of Opportunities and Risks 1 Design of Intervention 2 Implementation and Compliance 3 Application of the Five Dimensions 4 Part B: Water Quality Management by Armenia, Azerbaijan, and Georgia 4 Identification of Opportunities and Risks 4 Design of Intervention 5 Implementation and Compliance 5 Application of the Five Dimensions 5 Case Study Description 6 Introduction 6 Part A: The Arpaçay/Akhuryan Dam 7 Regulatory Framework 8 Protocol on the Beneficial Uses of Boundary Waters (1927) 8 Protocol on the Joint Construction of the Arpaçay Dam (1964) 9 Cooperation Agreement on the Construction of a Dam on the Bordering Arpaçay River and the Constitution of a Dam Lake (1973) 9 Protocol Concerning Mainly Technical Cooperation, Riverbed Changes (1990) 9 Protocol on the Establishment of Diplomatic Relations and the Protocol on the Development of Bilateral Relations (2009) 10 Institutional Frameworks 10 Analysis and Implementation 11 Key Points 14 Part B: Basin Water Quality 15 Regulatory Frameworks 16 International Conventions 16 Regional Policies 16 National Policies and Plans 17 Institutional Frameworks 18 International Institutions 18 National Institutions 18 International Projects and Agencies 19 Promoting Development in Shared River Basins iii Analysis and Implementation 20 The Water Quality Problem 20 Implementation of Regulatory and Institutional Frameworks 21 Progress and Challenges 24 Conclusions 25 Annexes 27 ANNEX 1A 27 Sub-Annex 27 Institutional Organization Charts 28 ANNEX 2A Treaty and Agreement Text or Text Reference 29 Convention Concerning Use of Water from Border Rivers and Streams between the Union of Soviet Socialist Republics and the Turkish Republic 31 Agreement between the Government of the Union of Soviet Socialist Republics and the Turkish Republic on Cooperation in the Construction of a Dam and a Water Reservoir on the Akhurian (Arpa-Chai) Border River 34 Rules of Simplified Mutual Crossing of the Soviet-Turkish Border and Temporary Stay of Soviet and Turkish Citizens Involved in and Supervising Dam Construction on the Akhurian (Arpa-Chai) River 37 Guidelines on the Joint Operation of the Dam and Water Reservoir on the Akhurian (Arpa-Chai) River 41 Notes 46 Chapter 2 Columbia Basin 47 Summary: Three-Stage Process of Coordinated Basin Development 47 Identification of Opportunities and Risks 47 Design of Intervention 48 Implementation and Compliance 48 Application of the Five Dimensions 50 Case Study Description 51 Introduction 51 Institutional Framework 53 Non-Treaty Storage 54 Benefits Beyond the Basin 55 Competing Issues and Solutions 55 Difference of Opinion 1 57 Difference of Opinion 2 58 Difference of Opinion 3 58 Coordinated Operations of the Cascade System 59 Planning, Management, and Operations 59 iv Promoting Development in Shared River Basins Initial Filling Provisions 61 Filling Provisions for Treaty Storage 62 Summary of Duncan Special Operating Program (1 April 1967–31 March 1968) 63 Filling of Non-Treaty Storage (Revelstoke and Extra Storage at Mica) 66 Flood Control, Early Warning and Data Exchange 67 Hydrometeorological Committee and Data Sharing 68 Conclusions 70 Annexes 72 ANNEX 2A 72 History and General Information 72 Agreements 72 Hydrometeorological Data 72 Notes 72 Chapter 3 Chu and Talas Basins 77 Summary: Three-Stage Process of Coordinated Basin Development 77 Identification of Opportunities and Risks 77 Design of Intervention 78 Implementation and Compliance 79 Application of the Five Dimensions 80 Case Study Description 80 Introduction 80 Regulatory Framework on the Operation of Cascade and Water Quantity Management 82 All-Union Ministry of Melioration and Water Economy Regulations 83 Protocol on Sharing Operational Costs on the Water Management Facilities of Interstate Status 84 Bilateral Agreement on the Use of Water Management Facilities of Interstate Status 84 Institutional Arrangements for Transboundary Water Cooperation in the Chu and Talas Basins 86 Actual Implementation of the Regulatory and Institutional Framework 91 Reported Activities of the Bilateral Commission, Its Secretariat, and Working Groups 91 Stakeholder View of the Process 93 Analysis of the Implementation of the Regulatory and Institutional Framework 95 Conclusions and Recommendations 97 Notes 100 Chapter 4 Vuoksi Basin 101 Summary: Three-Stage Process of Coordinated Basin Development 101 Identification of Opportunities and Risks 101 Promoting Development in Shared River Basins v Design of Intervention 102 Implementation and Compliance 102 Application of the Five Dimensions 103 Case Study Description 104 Introduction 104 Study Context 105 Development of the International Regulatory Framework in the Vuoksi River 107 Geopolitical Background: Finish-Russian Relations 107 Water Cooperation between Finland and Russia 108 Cooperation in the Vuoksi River Basin 110 Theme 1: Institutional Cooperation 110 Regulatory Framework for Cooperation 110 Cooperation in Practice 112 Theme 2: Flow Regulation in the Vuoksi 116 Regulatory Framework for Flow Regulation 116 Flow Regulation in Practice 118 Theme 3: Compensation Mechanisms 121 Regulatory Framework for Compensations 121 Compensation Mechanisms in Practice 122 Conclusions 124 Annexes 127 ANNEX 4A 127 Key Agreements and Treaties 127 ANNEX 4B 128 Methodology 128 Notes 129 Chapter 5 Douro Basin 135 Summary: Three-Stage Process of Coordinated Basin Development 135 Identification of Opportunities and Risks 135 Design of Intervention 136 Implementation and Compliance 136 Application of the Five Dimensions 138 Case Study Description 138 Introduction 138 Regulatory Framework 140 Tools that are Part of the Regulatory Framework and Operate at Different Levels 140 Institutional Arrangements 147 Stakeholders’ Role, Scope of Action, and Liability 147 Inter-Relations, Level of Cooperation and Conflict Potential 151 vi Promoting Development in Shared River Basins Actual Implementation of the Framework 153 Informal Arrangements Guiding Implementation Not Captured in Formal Agreements 154 Implementation Success in Achieving the Goals Laid out in Ruling Agreements 155 Hindrances and What Would Need to Be Done to Achieve Framework Objectives 157 Conclusions 159 Annexes 160 ANNEX 5A 160 List of Interviewees 160 ANNEX 5B 160 Flowcharts 160 Web Links 161 Notes 162 Chapter 6 Rhône Basin 165 Summary: Three-Stage Process of Coordinated Basin Development 165 Part A: Coordination for Hydropower Production 165 Identification of Opportunities and Risks 165 Design of Intervention 166 Implementation and Compliance 167 Part B: Sediment Flushing at Verbois Dam 167 Identification of Opportunities and Risks 167 Design