Report No.43465-TJ Report No. Tajikistan 43465-TJAnalysis Environmental Country Tajikistan Country Environmental Analysis Public Disclosure AuthorizedPublic Disclosure Authorized May 15, 2008 Environment Department (ENV) And Poverty Reduction and Economic Management Unit (ECSPE) Europe and Central Asia Region Public Disclosure AuthorizedPublic Disclosure Authorized Public Disclosure AuthorizedPublic Disclosure Authorized Document of the World Bank Public Disclosure AuthorizedPublic Disclosure Authorized Table of Contents Acknowledgements ................................................................................................................ 6 EXECUTIVE SUMMARY ................................................................................................... 7 IIntroduction ....................................................................................................................... 16 1. 1 Economic performance and environmental challenges ....................................... 16 1.2. Rationale ................................................................................................................... 17 1.3. Objectives ................................................................................................................. 18 1.4. Key Issues ................................................................................................................. 19 1.5, Methodology and Approach ..................................................................................... 20 1.6. Structure ofthe Rep0rt .............................................................................................. 22 I1. Cost of Environmental Degradation................................................................................ 23 I11. Environmental Health Losses in Tajikistan ................................................................... 29 3.1. Urban Air Pollution .................................................................................................. 29 3.2 Lead ........................................................................................................................... 32 3.3. Water, Sanitation, and Hygiene ................................................................................ 35 3.4. Indoor Air Pollution.................................................................................................. 40 3.5. Other Important Aspects OfEnvironmental Pollution In Tajikistan ........................ 43 IV. Natural Resources Damages in Tajikistan..................................................................... 48 4.1. Costs to Crop Production .......................................................................................... 48 4.2. Cost ofRangeland Degradation................................................................................ 53 Source: Abdusaliamov E. et al., 2000 .................................................................................. 54 4.3. Deforestation............................................................................................................. 55 4.4. Natural Disasters ....................................................................................................... 60 V . Climate Change and Hydro Power Potential .................................................................. 64 VI. Policies and Institutions for Environmental Management ............................................ 69 6.1. Assessmentheview ofthe policies and programs for environmental protection and natural resource use ......................................................................................................... 69 6.2 Constitutional provisions and laws regarding environment ...................................... 72 6.3 Environmental Policy Instruments............................................................................. 73 VI1. Environmental Governance .......................................................................................... 76 7.1. Institutional design: vertical and horizontal coordination ........................................ 76 7.2 Environmental Governance ...................................................................................... 76 7.3 Licensing and Permitting .......................................................................................... 78 7.4 Compliance and enforcement mechanisms ................................................................ 79 7.5 Economic incentives for pollution reduction ............................................................ 83 7.6 Funding for environmental protection ..................................................................... 84 7.7 Privatization and environmental governance ........................................................... 85 7.8 Opportunities for improvement in environmental governance .................................. 87 VI11. Conclusions and Recommendations ........................................................................... 89 References ............................................................................................................................ 95 Annex 1. Law on Nature Protection ................................................................................. 102 Annex 2 . List Of Environment Related Legislations and Authorities In-charge of Issuing Permits, Approvals, Inspection and Law Enforcement. .................................... 104 Annex 3 . Methodology for Health Cost Estimation .......................................................... 117 Annex 4 . Institutional design of environmental management system in Tajikistan ........ -139 3 List of tables 1.1 Summary of Development Indicators in Central Asia 2.1 Prioritization of environmental problems by population in Tajikistan 2.2 Annual cost of environmental damage - low and high estimates (Million TJS) 3.1.1 Estimated health impact of urban air pollution 3.1.2 Estimated annual cost of health impacts (Million TJS) 3.2.1 Gasoline specifications in Tajikistan and EU, maximum limits 3.2.2 Estimated annual IQ losses and cases of MMR from lead exposure 3.2.3 Annual cost off health impacts ofexposure to lead pollution 3.2.4 Estimated loss of life-time earnings due to IQ losses 3.3.1 Estimated annual health effects from water, sanitation, hygiene 3.3.2 Estimated DALYs from diarrheal mortality and morbidity 3.3.3 Estimated annual cost of diarrheal illness (Million TJS) 3.3.4 Annual cases ofwaterborne infectious diseases 3.3.5 Estimated annual cost of Hepatitis A and TyphoidParatyphoid 3.3.6 Estimated annual household averting expenditures 3.4.1 Health risks of indoor air pollution 3.4.2 Estimated annual health effects of indoor air pollution 3.4.3 Estimated annual cost of indoor air pollution in Tajikistan 3.5.1.1 Tajik Aluminum Plant: Estimated Emissions (1999-2002) 3.5.2.1 Wastes Generated in Main Industrial Installations, 1999 4.1.1.1 Land use in Tajikistan (2002-2005) 4.1.1.2 Salinity levels of irrigated lands 4.1.1.3 Crop salinity tolerance and yield effects 4.1.1.4 Assumed cropping patterns on irrigated lands 4.1.1.5 Observed and estimated yields 4.1.1.6 Estimated annual cost of crop losses from soil salinity 4.1.2.1 Eroded lands in Tajikistan (in %) 4.1.2.2 Fertilizers for humus wash off substitution 4.1 -2.3 Estimated annual cost of crop losses 4.2.1 Area, yield and degree of desertification of rangelands in Tajikistan 4.2.2 Total livestock numbers and estimated annual feed requirement 4.2.3 Annual cost ofrangelands degradation in Tajikistan 4.3.1 Costs of annual deforestation 4.4.1 Natural disasters and impacts in Tajikistan, 2001-2006 4.4.2 Estimated annual cost of natural disasters 4.4.3 Unit costs applied to frequently occurring disasters 5.1 Potential Hydropower resources in Tajikistan List of figures 2.1 Annual Cost ofEnvironmental Damage 2.2 Annual Cost of Environmental Damage as %age of GDP) 2.3 Relative share of Damage Cost by Environmental Category 2.4 Estimated Cost ofEnvironmental Health Effects per Person Exposed 2.5 The Burden ofMortality Related To Environmental Causes 2.6 Cost of Environmental Degradation (Health and Natural Resources Damages) 2.7 Health Cost ofEnvironmental Damage 4 3.1.1 Annual Costs ofUrban Air Pollution (Million TJS) 3.2.1 Dynamics of Estimated Air Pollution from Stationary and Mobile Sources (2000- 2005) 3.3.1 Annual Costs of Inadequate Water, Sanitation, and Hygiene (Million TJS) 3.4.1 Annual Costs of Indoor Air Pollution (Million TJS) 4.4.1 Number ofNatural Disasters and Fatalities in Tajikistan (200 1-2006) 4.4.2 Impacts ofNatural Disasters in Tajikistan (2001 -2006) 5.1 Expected Changes in Annual River Flow (%) and the impact of climate change by 2050-s (HadCM2) 5.2 The Dynamics of Malaria and Temperature in Tajikistan List of boxes 3.3.1 Boiling of Drinking Water in Tajikistan 3.5.1.1 Fluoride pollution in Tursunzade region 4.1.2.1 Dams in Tajikistan 4.3.1 Dashtijum Biodiversity Conservation Project (DBCP) 4.3.2 Carbon Storage Value 4.4.1 Anthropogenic Reasons of Natural Disasters in Tajikistan 5.1 Shrinking Glaciers in Tajikistan 5 Acknowledgements This report was prepared by a team led by Muthukumara Mani (ENV). The core consultant team included Elena Strukova, Nodira Karimova, Malika Babadjanova, Viju Ipe and T.V. Sampath. The study was carried out under the Development Policy Lending (DPL) Program ofTajikistan which is task managed by Sudharshan Canagarajah. The study was also ably supported by Mehrnaz Teymourian and Cevdet Denizer. The work was carried out under the general direction