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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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Introducing product taxes (including import duty) on selected products polluting water in Kyrgyzstan

Most point-source water pollutants are currently tackled by a range of pollution fees. However, this instrument is not effective for managing diffuse pollution, when individual polluters cannot be identified or monitored. Examples of pollutants that most contribute to diffuse pollution of water resources in Kyrgyzstan include pesticides, mineral fertilisers and machinery lubricants with mineral oil. These are all prone to leaching and have contaminated both surface and groundwater without much control to date.

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