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Reforming Economic Instruments for Water Resources Management in Kyrgyzstan

image of Reforming Economic Instruments for Water Resources Management in Kyrgyzstan

This report presents recommendations on the reform of economic instruments for water resources management in Kyrgyzstan, specifically on tariffs for urban water supply and sanitation (WSS) and irrigation water, pollution charges, surface water abstraction charges for enterprises (consumptive and non-consumptive uses), specific land tax rates for the Issyk-Kul biosphere reserve, as well as taxes and customs duty on products contributing to water pollution. For each instrument, alternative reform options are identified and assessed, and preferred options put forward, with an action plan.

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Executive summary

As part of the ongoing National Policy Dialogue (NPD) on water policy conducted in co-operation with the EU Water Initiative (EUWI), Kyrgyzstan has committed to enhance the use of economic instruments for water resources management to improve the management of surface and groundwater resources, including the quality of the resource. The reform would be very timely as by strengthening incentives for improving water use efficiency economic instruments could help to better balance growing demand for water (not least due to demand from export-led agriculture and tourism as key drivers of economic growth in Kyrgyzstan) with the available fresh water resources (the annual run-off will likely drop after 2050 due to negative impact of climate change) thus ensuring greater levels of security of water supply (presently, many farmers experience water shortages over the vegetation period). Also the reform could help to make the water sector more financially autonomous and less dependent on state support.

English

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