European Community Contribution Agreement with an International Organisation

EUROPEAN COMMUNITY CONTRIBUTION AGREEMENT WITH AN INTERNATIONAL ORGANISATION

EUROPEAID / DCI-ENV / 2011 / 260-062

OECD - UNECE ANNUAL REPORT (June 2013-May 2014)

July 2014

Table of contents

1. Summary and context of the project ...... 4 2. Background of the project ...... 6 3. Annual report on the implementation of the EUWI EECCA Component ...... 7 3.1 Work package 1 (Promoting the political commitment in EECCA countries at national level towards action and innovation-oriented partnership) ...... 7 3.2 Work package 2 (Development of a robust analytical basis to substantiate policy dialogues; elaboration of the policy packages) ...... 7 3.3 Work package 3 (Benchmarking and exchange of experiences) ...... 18 3.4 Work package 4 (Dissemination of the project information and stakeholder involvement) ...... 19 4. Difficulties encountered and measures taken to overcome problems ...... 20 5. Changes introduced in the project implementation ...... 20 6. Achievements and results ...... 20

1. Summary and context of the project

The European Union’s Water Initiative (EUWI) is a political initiative which seeks to assist partner countries in the development and implementation of policies, strategies and priorities for the water and sanitation sector which donors could align with and support. The Initiative ensures that existing resources are more effectively utilised and new resources are attracted in the sector to meet the specific requirements of individual developing countries and river basin organisations.

The EUWI EECCA is the regional component of the EUWI focused on Eastern Europe, the Caucasus and Central Asia (EECCA). It supports work of the European Neighbourhood Policy and of the EU-Central Asia Platform for Environment and Water Cooperation. In addition, it helps to promote the progressive approximation to EU water policies, particularly to the EU Water Framework Directive, in EECCA countries.

Implementation of the EUWI EECCA is facilitated through activities of the Organisation for Economic Co-operation and Development (OECD) and the United Nations Economic Commission for Europe (UNECE). OECD is the strategic partner for economic and financial aspects of water resources management, including water supply and sanitation (WSS). UNECE is the strategic partner for integrated water resources management (IWRM).

OECD and UNECE have actively promoted water policy reforms under the EUWI over the past decades. Jointly the two organizations have a good experience on how to initiate and sustain policy reforms that are well adapted to the situation in EECCA countries (see OECD, 2011, Ten Years of Water Sector Reform in EECCA, for a review of recent experience).

The current action builds on outcomes and the political momentum initiated by the OECD and UNECE under the EU-funded contract DCI-ENV/2008/149-674, carried out in 2008-2012. That project supported mapping of the situation and initiation of National Policy Dialogues on water in eight EECCA countries.

The dialogues are continued in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Ukraine; and at a sub-sovereign level in Russia (Republic of Buryatia, Lake Baikal basin). Negotiations with Uzbekistan are ongoing about joining the process of National Policy Dialogues in 2014, eventually. An Uzbek delegation visited UNECE in Geneva in May 2014 to discuss possible options.

Considerable amount of work has materialised during the activity period of 1 June 2013 - 31 May 2014. Dialogues are active in ten countries, and are substantiated by significant analytical work (see Table 1 below). A number of policy outputs have already been delivered and are being implemented. Some of the major directions of work and key outputs include:

 In Tajikistan, the Water Sector Reform Strategy was finalized in 2013 and its implementation started in late 2013. A major institutional change unfolded: policy- making is now severed from operations; the former stays with the Ministry of Energy and Water Resources, while the latter are devolved to the newly established Agency of Irrigation and Land Reclamation. In parallel, a legal working group finalized a detailed report in December 2013 about necessary changes to implement IWRM, including adjustments in the Water Code.  In Georgia, the new Water Law was drafted and went through thorough discussions with different governmental agencies and other stakeholders (the draft law will be handed to Parliament in summer of 2014).  In Turkmenistan, the new draft Water Code was finalised by the legal working group in May 2013, bringing it in line with main principles of IWRM. In the second part of 2013, consultations were held with relevant ministries and agencies to accommodate their comments. National Parliament started preparations for adoption of the Code in January 2014.  Work on strengthening the use of economic instruments for water management was completed at national level in Armenia and Kyrgyzstan and is underway at sub sovereign and basin level in Russia (Republic of Buryatia, Lake Baikal basin) and at transboundary level (in Armenia, Azerbaijan and Georgia);  A new project was launched in Moldova, with a view to streamline domestic financial support mechanisms for water supply and sanitation.

In addition to analytical work, the OECD and UNECE have organised or have participated in a series of meetings:  11 high-level EUWI NPD Steering Committee meetings, in 7 countries;  The EUWI multi-stakeholder seminar at the World Water Week (September 2013 in Stockholm, Sweden);  The 17th meeting of the European Union Water Initiative (EUWI) Eastern Europe, Caucasus and Central Asia (EECCA) Working Group (24-25 October 2013 in Helsinki, Finland);  The plenary session of the Third Meeting of the Parties of the Protocol on Water and Health, dedicated to NPDs (26 November 2013 in Oslo, Norway).

A communication strategy was developed and communication activities have remained strong towards different target groups. A brochure was prepared on achievements of the EUWI in EECCA since 2006. It has been (and will be) disseminated in all events where the OECD and UNECE participates on the region. It is available for other partners as well.

Table 1. Main activities under the ongoing IWRM & WSS NPDs Instruments/frameworks AM AZ GE KG KZ MD UA RU TJ TM

Water Framework Directive’s principles. x x x x x x x x x EU Urban Wastewater Directive

UNECE Water Convention (transboundary waters) x x x x x

UNECE-WHO Protocol on Water and Health x x x x x x x Climate change adaptation (EU, OECD and UNECE x x instruments) EU Flood Directive/UNECE instruments x

Institutional frameworks (e.g. River Basin Councils) x x x x Overcoming fragmentation in, and sustainable business x models for WSS systems Economic instruments for, and financing of, water resources x x x x management New water legislation/strategy on IWRM x x x x x

2. Background of the project

The project is aimed at achieving the water related Millennium Development Goals (MDGs) in the EECCA countries as well as specific targets on water management set up in the EU Water Policy, Neighborhood Policy, Eastern Partnership and the EU Central Asia Strategy country programmes.

The project is assisting the target countries in adopting a more integrated approach to water management, addressing the current fragmentation of water resource management and improving multi-stakeholder participation. It identifies and removes some of the key hurdles that impede the deployment of IWRM, while reflecting countries' level of socio-economic development. In the targeted countries, OECD and UNECE are closely cooperating to advance policy reforms in the field of IWRM and/or WSS.

Activities usually take the form of national policy dialogues (NPDs), aimed at developing and implementing water policy reforms in EECCA countries. In particular, NPDs help elaborate policy packages (government strategies, laws, regulations), as well as monitor implementation of the adopted policy packages; the latter is essential, as implementation remains a major bottleneck in EECCA countries.

The NPDs also serve as national mechanisms for coordination of the development aid and technical assistance in the water sector. They contribute to a more efficient use of EU and other development aid and technical assistance in the region.

Another specific objective is to support the organisation of annual meetings of the EUWI EECCA Working Group, which serves as a platform for dissemination and experience sharing. 3. Annual report on the implementation of the EUWI EECCA Component

3.1 Work package 1 (Promoting the political commitment in EECCA countries at national level towards action and innovation-oriented partnership)

Work package 1 aims at strengthening the political commitment of governments in EECCA countries to water sector reforms. This is achieved through high-level policy dialogues on water policies. Activities include:  continuation of high-level policy dialogues;  annual meetings of the NPDs Steering Committees (SCs) in recipient countries.

Activities under this Work package are bundled with Work package 2 (see below).

3.2 Work package 2 (Development of a robust analytical basis to substantiate policy dialogues; elaboration of the policy packages)

Work package 2 aims at supporting analytical work to prepare policy packages for the NPDs. Three actions are being carried out:  preparation of the policy packages on water policy reforms (IWRM and WSS);  strengthening the use of economic instruments in water policies;  supporting sound business models and realistic financial plans for water supply and sanitation policies.

An overview of activities per country under the Work Packages 1 and 2 follows.

Armenia1

Background

The NPD in Armenia was initiated in 2006. It facilitates implementation of the IWRM principles in the national legislative and institutional frameworks. In 2010, UNECE and OECD established a joint NPD on IWRM with one single Steering Committee, allowing more synergies and better coordination of activities. So far, the NPD hosted:  the development of a programme of water management measures for the Marmarik River Basin;  work on economic instruments and financing of water management;  a pilot project on payments for ecosystem services in the Razdan River Basin (2010- 2011).

Activities in the reporting period

Three Steering Committee meetings have been held during the reporting period – in September 2013, December 2013 and May 2014. Draft national targets under the Protocol on Water and Health2 were discussed, developed and approved during these three meetings. The

1 See also http://www.unece.org/env/water/npd/countrydialogues/am 2 Armenia signed the UNECE-WHO/Europe Protocol on Water and Health in 1999 and is currently in the process of its ratification target setting process is co-financed by Finland. The project “Environmental Protection of the International River Basins” and the proposal for reform of economic instruments in Armenia were presented at NPD meetings as well.

The Armenian State Committee of Water Systems expressed demand for a new activity aimed at developing a national strategy for sustainable sanitation. The strategy would provide specific orientations to increase coverage by wastewater collection and treatment, in a financially realistic way. OECD launched this activity in 2013. A workshop was organized in April 2014 to discuss the state of sanitation services and future trends in Armenia, current sources of funding for the sector and main financing challenges. Recommendations will cover institutional and regulatory reform, market structure, and financing arrangements.

Table 2. Armenia – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried out Main messages/Outputs  Support to the  10th NPD Steering  Baseline analysis of development of Committee meeting (26 Armenia’s health and government September 2013, Yerevan) environmental situation and regulations on  11th NPD Steering related legal framework economic Committee meeting (12  Approval of national targets instruments in water December 2013, Yerevan) on water and health management  12th NPD Steering  Protocol on Water Committee meeting (6 May and Health 2014, Yerevan)  A national strategy for sanitation

Azerbaijan3

Background

The First Steering Committee meeting was organized in October 2010. The NPD on IWRM focuses on the development of a government strategy for the management of water resources (National Water Strategy). The Government of Finland contributes expert support to preparation of the strategy. Transboundary water cooperation with neighbouring Georgia is another important item on the National Policy Dialogue agenda, specifically the preparation of a bilateral agreement on management of shared transboundary waters. UNECE and OSCE implement a project on the preparation of a bilateral agreement between Azerbaijan and Georgia on protection and use of water resources in Kura River basin, which is regularly presented to the NPD Steering Committee. In 2012 the national Water Strategy was drafted to introduce the principles of integrated water resources management (IWRM), as reflected in the European Union (EU) Water Framework Directive and the UNECE Water Convention.

Activities in the reporting period

The 3rd NPD Steering Committee meeting was organised in Baku on 23 January 2014. Some 30 stakeholders and donors participated.

Development of Water Strategy stalled in 2013 but it was agreed to resume work and the strategy within the next few months, with a view to pass the strategy to Government for approval later in 2014. The Steering Committee discussed the potential of applying new economic instruments in water sector, such as a reform of water abstraction fees. Participants

3 See also http://www.unece.org/env/water/npd/countrydialogues/az also welcomed the proposal to initiate the process of target setting under the Protocol on Water and Health.

In order to meet the priorities of the 2014 workplan, the Ministry of Ecology and Natural Resources of Azerbaijan will establish three working groups under the NPD process:

 One on economic aspects of WRM. It will look at economic models that could help achieve financial sustainability of water management;

 One on legal issues, to finalise the strategy, and explore further legislative changes needed;

 One on water quality monitoring, with special attention to the state of transboundary rivers.

An expert workshop was organised on 24 January 2014 in Baku, as a first step towards the assessment of the economic benefits to be gained from cooperative action in water management between Azerbaijan and Georgia. Different development paths that combine consumptive and non-consumptive water uses will be explored (e.g. extension of irrigated areas). The OECD will assess how these paths affect water availability and demand. The potential benefits of concerted action will be assessed and mechanisms to share the costs and the benefits between the two riparian countries will be explored. The project addresses a series of pragmatic issues regarding the consistency of Polluter Pays or Beneficiary Pays principles and Payments for Ecosystem Services. It will contribute to a major initiative by UNECE on the economic benefits of transboundary water management, in support of the diffusion of the Water Convention.

Table 3. Azerbaijan – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried Main messages/Outputs out  Preparation of the National  3rd NPD  Agreement to initiate the Water Strategy Steering target setting process under  Transboundary cooperation Committee the Protocol on Water and with Georgia on Kura River meeting (23 Health  Strengthening the economic January 2014,  Decision to establish three analysis of water sector Baku) working groups under the reforms, including benefits of NPD process (economic improved transboundary models, legal aspects, water cooperation quality)

Georgia4

Background

The NPD on IWRM started in Georgia in September 2010 with meetings of the UNECE Water Convention secretariat with the Ministry of Environmental Protection and Natural Resources and other stakeholders. The Memorandum of Understanding on the NPD implementation was signed by the Ministry of Environment Protection and UNECE in October 2011.

4 See also http://www.unece.org/env/water/npd/countrydialogues/ge The NPD on IWRM in Georgia focuses on three major topics: preparation of a National Water Law based on IWRM principles and the EU WFD; setting targets for the implementation of the Protocol on Water and Health; and transboundary activities, including cooperation with neighbouring Azerbaijan and accession to the Water Convention. Two Steering Committee meetings have been held: on 11 June 2012 and 30 May 2013.

Activities in the reporting period

Work was conducted to raise political support to the Protocol which Georgia signed in 1999 but never ratified. A roundtable meeting on the issue was organised on 6 November, 2013and a working group was set up to support the ratification process.

During the reporting period, input has been gathered from relevant ministries and other stakeholders to the draft new Water Law, prepared by UNECE-financed expert group in early 2013. A revised draft was prepared and presented to Parliament.

On 25-27 November 2013, a bilateral workshop with participants from Georgia and Azerbaijan was organised in Kachreti to discuss plans of the water-food-energy-ecosystems pilot project on river Alazani/Ganych. Outcomes of the workshop were presented at the NPD Steering Committee meeting on 23 January 2014, in Baku . The Alazani nexus assessment report was sent to stakeholders for comments in May 2014.

Table 4. Georgia – highlights of the activity period 01.06.2013-31.05.2014

Focus of activities Activities carried out Main messages/Outputs  Preparation of  Roundtable meeting on  New consolidated version of national water law ratification of Protocol Water Law prepared and  Strengthening the on Water and Health (6 presented to Parliament. economic analysis November 2013,  Establishment of working of water sector Tbilisi) group to prepare ratification reforms, including  Bilateral workshop on of the Protocol on Water and benefits of the water-food-energy- Health improved ecosystems pilot project transboundary  Alazani nexus assessment on river cooperation report drafted and distributed Alazani/Ganych (25-27 for comments November 2013,

Kachreti)

Kazakhstan

Background

Kazakhstan requested the initiation of a NPD process in 2010. After some preparation, a joint UNECE-OECD preparatory mission to Kazakhstan was organized in May 2012 and an interministerial preparatory meeting was organized in Astana in September 2012 to prioritize the topics for the NPD in the country.

Activities in the reporting period

On 21 June 2013, the first meeting of the NPD Steering Committee was held in Astana, Kazakhstan. The meeting was chaired by Mr. Yerlan Nysanbayev, Vice-Minister of Environmental Protection of Kazakhstan. Over 30 representatives of a broad range of stakeholders attended, including relevant ministries and international donors.

Discussions at the meeting focused on the added value for Kazakhstan to access the Protocol on Water and Health. It was decided that a national expert group would be set up with UNECE’s support to study the potential impacts of becoming a party to the Protocol on Water and Health.

Participants also welcomed a project on sustainable business models for water supply and sanitation in small towns and rural settlements in Kazakhstan. The project was deemed timely and useful as massive capital investments by the Government failed to generate expected results.

On 6 December 2013, the enlarged NPD working group meeting took place in Astana to discuss preliminary results of NPD process so far.

On 24 April the second NPD Steering Committee meeting was held in Borovoe. An NPD workplan for 2014–2015 was endorsed at the meeting, with two main areas of work for next year: UNECE will support Kazakhstan in joining the Protocol on Water and Health; and OECD will help to develop sustainable business models for water supply and sanitation in rural areas of Kazakhstan.

Table 5. Kazakhstan – highlights of the activity period 01.06.2013-31.05.2014

Focus of activities Activities carried out Main messages/Outputs  Protocol on Water  1st NPD Steering  NPD work plan for 2014-2015 and Health Committee meeting (21 in Kazakhstan approved  Sustainable business June 2013, Astana)  Report on usefulness of models for WSS in  NPD Working Group Kazakhstan’s accession to the small towns and meeting (6 December Protocol on Water and Health villages 2013)  Interim report on business

 2nd NPD Steering models applied in WSS in

Committee meeting (24 Kazakhstan discussed at, April 2014, Borovoe) revised and approved after, the meting

Kyrgyz Republic5

Background

In Kyrgyzstan, the policy dialogue process started in 2008. The NPD on IWRM in 2008–2010 focused on setting up a River Basin Council for the Chu Basin and developing an action plan to achieve sustainable water management, safe drinking water supply and adequate sanitation in accordance with the Protocol on Water and Health. In 2008–2010, the NPD on WSS focused on developing a strategic financial plan for WSS. During that period, five meetings of the NPD Coordination Council on WSS were held. The process was interrupted in 2010, due to political instability in the country, and resumed in mid-2011. A joint Steering Committee for both IWRM and WSS was established in 2011.

Activities in the reporting period

5 See also http://www.unece.org/env/water/npd/countrydialogues/kg Targets on the Protocol on Water and Health were formally adopted in June 2013 by the joint order of the Minister of Health and the Minister of Agriculture and Melioration of Kyrgyzstan. It is especially remarkable as Kyrgyzstan is not yet a party to the Protocol.

On 18 October 2013 the 10th NPD Steering Committee meeting was held in Bishkek. It was attended by over 30 representatives of different stakeholders and donors (EU Delegation, SDC, WHO, UNDP, EBRD, GIZ, OECD, UNECE). UNECE-financed expert group presented the inventory of available data about the Chu basin. The Chu basin council is the main target of the data gathered. Members of Steering Committee agreed with UNECE’s proposal to concentrate on implementation of the national targets on water and health, adopted in June 2013.

On 20 March 2014 the 11th NPD Steering Committee meeting was held. Continuation of support towards development of the basin management plan of Chu basin was confirmed to remain the main activity of UNECE within the National Policy Dialogue programme in next year. The OECD will supplement this work by reviewing how economic instruments can contribute to the implementation of basin management plans. Respective draft action plans were discussed at the meeting and at an expert workshop held prior to it. Participants agreed on next steps.

Table 6. Kyrgyz Republic – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried out Main messages/Outputs  Reform of economic  10th NPD Steering  Targets on Water and instruments for water Committee meeting (18 Health formally adopted management, including October 2013, Bishkek) by two relevant ministries water harmful subsidies  Draft Action plan on  11th NPD Steering  Promotion of river basin improving the use of Committee meeting (20 management in Chu economic instruments for March 2014, Bishkek) river basin water resources  Setting targets in the management context of Protocol on  Report with background Water and Health data about the Chu river basin (as part of basin management plan)  Report on the state of water infrastructure in the Chu river basin (as part of basin management plan)

Republic of Moldova6

Background

The NPD on IWRM in the Republic of Moldova started in 2006. In 2009-2010, with financial assistance from the Government of Switzerland, the dialogue focused on setting targets and target dates under the Protocol on Water and Health. It resulted in a Government Decision on targets adopted on 20 October 2010.

The NPD on WSS facilitated by the OECD also started in 2006. Its first phase (2006–2007) was devoted to developing a national financing strategy for urban and rural WSS. This output

6 See also http://www.unece.org/env/water/npd/countrydialogues/md helped to identify the need to revise the governmental strategy for WSS. The revision took quite some time, but finally a new government strategy unfolded, which was much more financially robust (it was approved in March 2014). In the second phase (2009–2010), a mid- term Action and Investment Plan was developed, to contribute to implementation of the Financing Strategy. The third phase was devoted to adapting WSS in Moldova to climate change and selecting sustainable business models for rural sanitation. New work is underway, on domestic financial support mechanisms for WSS.

Activities in the reporting period

The main focus of the NPD on IWRM is the implementation of the established targets under the Protocol on Water and Health. On 10 October 2013 the Clearing House under the Protocol on Water and Health was officially opened in Chisinau, on the occasion of the second Steering Committee meeting. The Clearing House is a hub for information on water and health issues and a resource centre for governmental officials, non-governmental organizations and the general public. Its operation is co-financed by SDC.

Steering Committee met in October 2013 and May 2014, to reviewe the action plan on the implementation of targets and its resource mobilization strategy.

Table 7. Republic of Moldova – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried out Main messages/ Outputs  UNECE-SDC project  NPD Steering  Opening of the Clearing on implementation of Committee meeting (10 House under the Protocol targets under the October 2013, on Water and Health in Protocol on Water and Chisinau) Chisinau Health  NPD Steering  Launch of a new project  Review of domestic Committee meeting (22 on domestic financial financial support May 2014, Chisinau) support mechanisms for mechanisms for WSS WSS in Moldova

Russian Federation

Activities in the reporting period

In 2012-13, the OECD reviewed economic instruments for water resources management in Russia. A new project unfolded, focused on the use of economic instruments for WRM at sub-sovereign and basin level in the Republic of Buryatia (Lake Baikal basin). The project will inform the ongoing policy dialogue on water management in Buryatia for which a Steering Group (called the Inter-ministerial coordination group) was established in October, 2013. A preparatory stakeholder meeting was held in July 2013 and the first meeting of the Steering group was held in January 2014.

Tajikistan7

Background

7 See also http://www.unece.org/env/water/npd/countrydialogues/tj The NPD on IWRM in Tajikistan started in 2010. The main focus is to support the development of the water sector reform strategy, including legal and institutional frameworks based on IWRM principles. Strengthening transboundary water cooperation with neighbouring Kyrgyzstan, as well as Afghanistan, are other important items on the agenda. The Road Map for the NPD on IWRM, which describes the content and workplan of the NPD, was prepared in 2010 and is regularly updated. A report mapping IWRM stakeholders was prepared in 2010-2011 to streamline the NPD process and avoid duplication of activities. Two Steering Committee meetings were held in 2012 and one in 2013.

Activities in the reporting period

The water sector reform strategy was completed by Spring 2013. A major institutional change unfolded: policy-making is now severed from operations; the former stays with the Ministry of Energy and Water Resources, while the latter are devolved to the newly established Agency of Irrigation and Land Reclamation.

The legal working group under the NPD was busy in the second half of 2013, proposing necessary legal changes to support the institutional reform and the implementation of IWRM. A report was finalised in December 2013.8 The World Bank will support changes in the Water Code in 2014-2015. The concrete amendments to by-laws that were proposed in the report will be processed by Government agencies and adopted in 2014.

OECD conducted a training workshop to support the Antimonopoly Agency of Tajikistan in reforming the tariff setting procedure for water supply and sanitation on 25-26 June 2013 in Dushanbe. The main objective was to build capacity by sharing good practices for WSS tariff, affordability measures, targeted social support and benchmarking of water utilities performance. About 30 people participated in the workshop, mainly professionals of the Antimonopoly Agency. The workshop paved the way to further work on related issues in the future. This new line of work will be reflected in the NPD.

The Steering Committee met in May 2014. It was chaired by Mr. Usmonali Usmonzoda, Minister of Energy and Water Resources of Tajikistan, and over 60 representatives of different stakeholders and donors participated. Delegates took stock of ongoing institutional and legal reforms. They agreed on actions to be taken, in particular to adjust the legal framework. Delegates also agreed that the next step of the reform will be the introduction of of water management at basin level. Different donors, including the World Bank, the Asian Development Bank and Switzerland, confirmed that they are planning to support the development of basin management plans and the creation of basin administrations..

Table 8. Tajikistan – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried out Main messages/Outputs  Support to  A workshop on water  Report on necessary incorporation of tariffs and related issues, changes in water IWRM principles with the Antimonopoly legislation for Agency, in June 2013 implementation of  Target setting in the IWRM in Tajikistan context of Protocol on  Work on legal aspects in (December 2013) Water and health support to the institutional reforms in  Strengthening the water sector economic dimension of water sector reforms, including

8 See Russian version at http://staging.unece.org/index.php?id=35028 water pricing

Turkmenistan9

Background

The kick-off meeting for the NPD on IWRM in Turkmenistan was held in December 2010. As part of the NPD on IWRM, an interministerial expert group was established to review national legislation with a view to adopt the standards of the Water Convention, including IWRM principles. The group concluded that the Water Convention corresponds to the interests of Turkmenistan. In August 2012 Turkmenistan acceded to the Water Convention.

Activities in the reporting period

The new draft Water Code was finalised by a legal working group in May 2013, bringing it in line with main principles of IWRM. In the second part of 2013 formal consultation were held with relevant ministries and state agencies to accommodate their comments and get formal approvals of the draft Code. In January 2014 the President requested the Parliament to start working on changes to the existing Water Code.

High level meetings between UNECE and Turkmen authorities continued during the reporting period to ensure political momentum for the reforms of water management. In September 2013, Mr. Sven Alkalaj, Executive Secretary of UNECE, met separately with President Mr. Gurbanguly Berdimuhamedov and with Foreign Minister Mr. Rashid Meredov in Ashgabad. They discussed the opportunity for Turkmenistan to join the Protocol on Water and Health. Further bilateral meetings took place in April 2014 on the same issues, with the Minister of Water Economy (Mr. Seyitmyrat Taganov), Deputy Foreign Minister (Mr. Vepa Hajiev), Deputy Minister of Nature Protection (mr. Geldi Chichayev), Deputy Minister of Health and Medical Industry (Dr. Leyli Shamuradova). Such high-level negotiations have proven necessary for successful project development in Turkmenistan.

The 4th NPD Steering Committee meeting took place on 3 April 2014. Delegates decided to initiate a road map for implementation of the principles of integrated water resource management in Turkmenistan.

Table 9. Turkmenistan – highlights of the activity period 01.06.2013-31.05.2014 Focus of activities Activities carried out Main messages/Outputs  Support to  4th NPD Steering  Text of new Water Code development of a Committee meeting (3 produced, ready to be new Water Code April 2014, Ashgabad) provided to Parliament  High-level meetings to for adoption ensure political support to NPD  New Water Code finalised by the Ministry of Water Economy and agreed upon with relevant other ministries

9 See also http://www.unece.org/env/water/npd/countrydialogues/tm

Ukraine

The NPD is currently on hold, because of political instability in the country.

Regional meetings

EBRD water sector seminar for Central Asia (Bishkek, 3 July 2013)

The NPD process and opportunities for cooperation were presented. EBRD representatives are already participating in most of the Steering Committee meetings but better exchange of information on practical work such as basin planning or studies on economic instruments, can be improved for mutual benefits.

EUWI Multi-Stakeholder Forum at the World Water Week (Stockholm, September 2013)

The EUWI Multi-Stakeholder Forum provided an opportunity for stakeholders to be updated on recent developments within EUWI. Emerging future directions of work such as water for green growth and the nexus approach were presented and discussed.

Annual EUWI EECCA Working Group meeting (Helsinki, 24-25 October 2013)

The meeting gathered around 50 representatives of EECCA countries and donors. Discussions focused on opportunities for more work in the region provided by the new global policy framework, including the UN Sustainable Development Goals (SDGs); the water, climate, food and energy nexus; green growth; and the EU Water Diplomacy initiative. Delegates endorsed the OECD/UNECE programme of work under the EECCA component of the EUWI for 2014.

Plenary session of the Third Meeting of the Parties of the Protocol on Water and Health, dedicated to the NPDs (Oslo, 26 November 2013)

Activities in support of the Protocol on Water and Health implemented under the EUWI NPD process were presented at the Meeting of Parties to the Protocol. Presentation was made by Romania, as Chair of the EUWI EECCA Working Group. NPDs contribute to the Protocol agenda, by: (1) supporting target setting processes and (2) providing platforms for feedback and reporting at national level through regular meetings. Activities are currently ongoing in Armenia, Georgia, Kazakhstan, Kyrgyzstan, Moldova and Tajikistan.

GIZ seminar on basin management in Central Asia (Bishkek, 3 December 2013)

GIZ seminar gathered all key stakeholders active in water management in Central Asia. UNECE and OECD made presentations respectively on NPD activities in countries of Central Asia and on reflecting green growth issues in river basin management.

GIZ regional conference “Prospects for Water Resources Management in Central Asia: from Basin Approach to Regional Cooperation” (27 May 2014 in Almaty)

The conference was attended by high-level delegations from all Central Asian countries and marked the completion of the stage 2 of the GIZ regional project. Achievements and plans for NPDs in four Central Asian countries were presented during the first plenary session of the 2- day conference. 3.3 Work package 3 (Benchmarking and exchange of experiences)

The aim of work package 3 is to establish a common understanding of water policy reforms across EECCA countries. Two activities are envisaged: (1) benchmarking achievements of the countries in achieving the MDGs and implementing IWRM principles in their legislations, (2) coordination of NPD activities with other actors in the region working at local, transboundary and regional levels.

Benchmarking

Benchmarking reports were originally planned for 2012 and 2015 to monitor progress made by EECCA countries in implementing IWRM principles. UNECE and OECD jointly drafted a benchmarking report in Spring 2013, based on responses to a questionnaire distributed to experts from EECCA countries. Comments received were incorporated in the final report available in English and Russian10 released in May 2014.

Coordination of activities

Efforts have been made to ensure that NPDs provide a platform for coordination of water sector activities in the respective countries. Donor coordination sessions have been organised as part of most NPD Steering Committee meetings and attracted high participation from donors and intenational organizations. Donors that participated in Steering Committee meetings are EU, Finland, Germany, Norway, Switzerland, USA, OSCE, UNDP, WHO, GEF, World Bank, EBRD and ADB.

The 17th meeting of the EUWI EECCA Working Group was organised on 24-25 October 2013 in Helsinki (see above).11

10 See http://www.unece.org/index.php?id=35306 (English version) and http://www.unece.org/index.php?id=35306&L=2 (Russian version) 11 See meeting documents at http://www.unece.org/env/water/core_group_euwi_npd_17th_working_group_mtg_2013.html 3.4 Work package 4 (Dissemination of project information and stakeholder involvement)

Dissemination of project information

Four substantive reports on national-level NPD activities have been prepared and published in the period of June 2013 to May 2014:12  National Policy Dialogue on IWRM in Kyrgyzstan. Process and results for the period of 2008-2013 (June 2013);  Results and lessons learned from the Georgian National Policy Dialogue on IWRM (December 2013);  Report on necessary changes in water legislation for implementing of IWRM in Tajikistan (December 2013);  Regional study “Integrated Water Resources Management in Eastern Europe, the Caucasus and Central Asia. European Union Water Initiative National Policy Dialogues progress report 2013” (May 2014).

Several publications have been released, which share information on on-going activities and outcomes. They are available in English and Russian:  Report “Water Policy Reforms in Eastern Europe, the Caucasus and Central Asia. Achievements of the European Union Water Initiative since 2006” (April 2014);  Two new issues of the 8-page EUWI NPD newsletter (in July 2013 and January 2014).13 Throughout the year the readership has been growing, and there are more contributions and seemingly a higher level of ownership by countries;  Twelve press releaseswere issued by UNECE, in English and Russian, to feature achievements of NPDs.14

Information has been regularly updated on dedicated web-pages on OECD and UNECE websites (www.oecd.org/water; www.unece.org/env/water/npd). Websites give access to presentations made at the meetings, meeting reports, other relevant reports, newsletters and press releases. Both websites are extensively used in the EECCA region as a source of information on IWRM and WSS issues.

Stakeholder involvement

During the reporting period of June 2013-May 2014, 11 NPD Steering Committee meetings took place. They were attended by variety of stakeholders from within and outside government agencies. Two separate stakeholder meetings were organised in addition:  On 6 November 2013 in Georgia, to discuss the opportunity to ratify the Protocol on Water and Health;  On 6 December 2013 in Kazakhstan, to discuss the draft NPD workplan for 2014- 2015 and the preliminary results of NPD process in 2013.

12 see http://www.unece.org/env/water/npd/publications.html 13 see http://www.unece.org/index.php?id=33249 (July 2013) and http://www.unece.org/index.php?id=35016 (January 2014) 14 see http://www.unece.org/env/water/npd/news.html 4. Difficulties encountered and measures taken to overcome problems

The main difficulty is that political processes cause delays:  In Azerbaijan, the institutional changes which have resulted in creation of the Water Agency have made the process of finalising of national water strategy stall in 2013;  In Tajikistan the national water sector reform strategy was finalised in spring 2013 but the implementation started only after Presidential elections in November 2013.

Maintaining direct contacts with both senior officials and middle managers within ministries and agencies is essential to make sure that NPD processes continue after political and/or institutional changes in the countries.

5. Changes introduced in the project implementation

Besides some delays with certain outcomes, there has been no major change in the programme and activities.

6. Achievements and results

NPD processes are on-going in 9 participating countries with strong political support and several of positive outcomes. One of the key functions of the EUWI NPD processes is to provide platforms for broad national-level discussions on water management issues. In the reporting period, 11 high-level EUWI NPD Steering Committee meetings were held in 7 participating countries. Numerous meetings of national Expert or Working Groups took place throughout the EECCA region.

Key outcomes are provided below at country and regional levels.

At national level

 In Georgia, the new Water Law was drafted and went through thorough discussions with different governmental agencies and other stakeholders (the draft law will be handed to Parliament in summer of 2014).

 In Turkmenistan, the new draft Water Code was finalised by the legal working group in May 2013, bringing it in line with main principles of IWRM. In the second part of 2013, consultations were held with relevant ministries and agencies to accommodate their comments. National Parliament started preparations for adoption of the Code in January 2014.  In Kyrgyzstan, the national targets under the Protocol on Water and Health were finalised in Spring of 2013 and were formally adopted in June 2013 by the joint order of the Minister of Health and the Minister of Agriculture and Melioration;  In Kazakhstan, the NPD process was initiated in 2013 with two projects: assessing opportunities for joining the Protocol on Water and Health; and developing business models for water supply and sanitation in rural areas.

At regional level:

NPD results and future plans were presented at the following regional meetings:  EBRD water sector seminar for Central Asia (3 July 2013 in Bishkek)  EUWI seminar at the World Water Week (September 2013 in Stockholm)  Annual EUWI EECCA Working Group meeting (24-25 October 2013 in Helsinki);  Plenary session of the Third Meeting of the Parties of the Protocol on Water and Health (26 November 2013 in Oslo)  GIZ seminar on basin management in Central Asia (3 December 2013 in Bishkek)  GIZ regional conference “Prospects for Water Resources Management in Central Asia: from Basin Approach to Regional Cooperation” (27 May 2014 in Almaty)