REPORT Improving City Infrastructure Management in Uzbekistan: Problems and Search for New Mechanisms and Instruments Tashkent-2011 1 2 Working group members: Research coordinator: Bakhtiyor Ergashev Team leader: Abdulla Khashimov National consultants: Oybek Rustamov Ekaterina Royka Bahtbek Sugirbaev Tashmukhamed Satiboldiev Zulfiya Davidova International experts: Ivan Safranchuk Lilit Melikyan This report reflects opinions and views of the working group, which may not coincide with the official point of Center for Economic Research, ESCAP and UNDP. © Center for Economic Research, 2011 All copyrights belong to the Center for Economic Research and United Nations Development Programme. Any presentation of this report or use of its parts can only be done with the written permission; reference to the source is a must. With regard to the questions about copying, translation or acquisition of the printed versions, please refer to the following address: Center for Economic Research, Uzbekistan, Tashkent, 100070, Shota Rustaveli Str., alley 1, building 5. 3 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................. 10 1 BACKGROUND .......................................................................................................................................................... 12 1.1. Introduction ........................................................................................................................................................... 12 1.2. Political Context of Urbanization .......................................................................................................................... 15 1.3. GDP Growth and Economic Change ..................................................................................................................... 15 1.4. Classification of Cities .......................................................................................................................................... 16 1.5. Urban Population Growth and Migration .............................................................................................................. 16 2 LOCAL GOVERNANCE AND MUNICIPAL FINANCE ...................................................................................... 17 2.1. Local Governance ................................................................................................................................................. 17 2.2. Municipal Finance ................................................................................................................................................. 17 2.3.The need to diversify the sources for municipal finance and legislative gaps ........................................................ 19 3 URBAN POLICY AND MANAGEMENT ......................................................................................................... 22 3.1. Urban Policy .......................................................................................................................................................... 22 3.2. Urban Planning ...................................................................................................................................................... 22 3.3. Urban management ............................................................................................................................................... 22 4 INFRASTRUCTURE ACCESS, NEEDS, AND GOALS ........................................................................................ 26 4.1. Electricity .............................................................................................................................................................. 26 4.2. Gas supply ............................................................................................................................................................. 27 4.3. Heat Supply ......................................................................................................................................................... 300 4.4.Water Supply ........................................................................................................................................................ 322 4.5.Sewage ................................................................................................................................................................. 344 4.6.Residential Solid Waste Management (RSW) ...................................................................................................... 365 5 CONCLUSIONS ......................................................................................................................................................... 39 6 RECOMMENDATIONS ........................................................................................................................................ 411 6.1. Legislation and policies ....................................................................................................................................... 411 6.2. Urban Management ............................................................................................................................................. 444 6.3. Improving Functioning Mechanisms of City Infrastructure Sectors ................................................................... 466 7 REFERENCES ................................................................................................................................................... 500 APPENDICES .............................................................................................................................................................. 544 Appendix 1: The scope of Authority of Government Bodies in Cities and Districts in terms of Urban Planning Activities. ................................................................................................................................................................... 544 Appendix 2: Functional Duties of City (District) Deputy Khokims ........................................................................... 555 Appendix 3: Analysis of City Heat Supply Problems ................................................................................................ 566 Appendix 4: International Experience in Managing Heat Supply .............................................................................. 577 Appendix 5: International Experience in Managing City Water Supply and Sewage .................................................. 59 Appendix 6: List of Laws, Regulatory and Legal Acts on Electricity Supply ........................................................... 611 Appendix 7: Scope of Authority of City WSS Management Bodies ......................................................................... 622 Appendix 8: Regulatory and Legal Framework on Managing Waste ........................................................................ 655 Appendix 9: Dynamics of Growth in Population, GDP and City RSW during 1996-2010 ......................................... 67 Appendix 10 SWOT Analysis of City System for Managing Residential Waste ......................................................... 69 Appendix 11: Regulation of RSW in Europe, USA, Canada, Japan and Korea ......................................................... 700 Appendix 12: Foreign Experience in Disposing RSW………………………………………………………………..71 4 Appendix 13: Improving the Management of RSW ................................................................................................... 722 Appendix 14: Planning the RSW Management .......................................................................................................... 733 Appendix 15: Tariff Policy- Foreign Experience ....................................................................................................... 744 Appendix 16: Access of Companies to Utilities (% of sample) ................................................................................. 766 Appendix 17: Local Budgets and Infrastructure: Foreign Experience ......................................................................... 77 Appendix 18: Demographic Trends ........................................................................................................................... 800 Appendix 19: Statute on Department for Managing City Infrastructure .................................................................... 800 5 LIST OF FIGURES Figure 1: Republic of Uzbekistan: Urbanization Dynamics (in %) ................................................................................... 16 Figure 2 Public Administration/local governance ............................................................................................................. 17 Figure 3: Extent of Heat Supply and Steam Grids (two-pipe) (km) .................................................................................. 30 Figure 4 Commissioning Heat Supply Networks (km) ..................................................................................................... 30 Figure 5: Commissioning Water Distribution Networks (km) .......................................................................................... 33 Figure 6 Urbanization (thousand people) and City Water Grid (km) Development Dynamics ........................................ 33 Figure 7: Commissioning Sewage Lines in Cities (km) ...................................................................................................