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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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Towards an Action Plan for reform of economic instruments for WRM in Kyrgyzstan

This chapter summarises recommended scenarios in the form of a draft Action Plan. For each instrument, the scenarios are seen as a continuum (an opportunity for gradual development) and as options that can be implemented either in sequence or in combination. The chapter stresses that implementation of the Action Plan provides a range of opportunities for Kyrgyzstan: it will help mobilise additional financial resources for water resource management through increased fiscal and tariff revenues, confer a greater degree of financial autonomy to operators of WSS and the state irrigation systems, and reduce the amount of public subsidies needed for operating and maintaining water infrastructure. The latter will free up significant public funding to support capital investment in water infrastructure, and to strengthen social support mechanisms targeting vulnerable social groups thus addressing possible social impacts of proposed reforms.

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