Syrdarya Water Supply Project


In 2011, the World Bank approved a large water management project in the predominantly rural Syrdarya region with a WB-IDA-share of USD 88 million, in which the participation of the Swiss State Secretariat for Economic Affairs SECO with a parallel financing was sought. The SECO project is a complementary and self-contained operation. It comprises (i) an investment component aimed at the rehabilitation of the Beshbulok water pumping station and its well fields, a backbone of regional water supply and of Gulistan the capital of Syrdarya province (260'000 inhabitants). It also includes targeted physical investment measures in selected villages in the vicinity of Beshbulok- and (ii) an institutional component consisting of a corporate development programme for three pilot water utilities (Bukhara, Samarkand, Syrdarya) and a limited number of selective and targeted regulatory framework measures. The objective of the institutional component is the creation of a sound basis for financial and operational sustainability of the three water utilities.

Country/region Period Budget
Uzbekistan
30.05.2012 - 31.12.2021
CHF 13'500'000
Background

Both the World Bank and SECO have a long record of operations in water supply and sanitation projects in Uzbekistan (e.g. Bukhara-Samarkand water supply project (BSWS), Nukus waste water project) and have closely worked together in the past 15 years with the Uzbek partners, in particular the national agency for communal services, and the water utilities in the specific regions.

Considerable efforts by the government and the help of international donors resulted in tangible improvements of the water supply in Bukhara and Samarkand and a good water supply system at Tashkent. Nonetheless, the decentralised provision of communal services in Uzbe

Objectives

The ultimate objective is to ensure water supply for Gulistan City through the rehabilitation of a pumping station and to create a sound basis for financial sustainability at the three utilities by enhancing their management quality and corporate governance as well as through limited and focused regulatory reform.

Medium-term outcomes

1) Functioning reliable water supply in Gulistan city and the 12 villages directly connected to the 32 km transmission line to Severny reservoir.

2) Connection of semi-rural settlements to the water main

3) Institutionally, commercially and financially sustainable pilot utilities. Based on transparent and realistic business planning, the utilities' present and future operation and investment costs can be accurately determined and covered by means of improved collection of tariffs and/or by government subsidies. The utilities are regulated by a Public Service Contract (PSC) that provides a clearly defined monitoring system by the political counterparts representing the population and end users resulting in transparent and performance-oriented water services.

4) Capacity of regulatory bodies to elaborate, approve and enact required regulations and laws

Results

Expected results:  

1) (i) continuous water supply from Beshbulok, covering the expected demand of the population for 2025- (ii) saving energy and thus lower operational costs thanks to the new water network pumps.

2) (i) Public Service Contracts are signed and their pre-conditions are fulfilled- (ii) Target values for KPIs of PSC jointly defined and approved- (iii) local inspectors/auditors are in place to perform audit of 2nd year of PSC- (iv) staff training performed.

3) (i) revised tariff setting, sector financing policy and performance accounting policy elaborated, approved and enacted- (ii) private sector participation policy and public oversight policy elaborated, approved and enacted.


Results from previous phases:  

Despite challenging circumstances during the implementation of the Bukhara Samarkand Water Supply project, tangible results have been obtained: The planned physical investments have successfully been completed. The six new Swiss funded water pumps at Samarkand led to continuous and reliable water supply and a reduction of the energy consumption at the pumping stations of 25%. In Bukhara, the quality of chlorination improved from a failing rate of 100% in 2009 to 5% in 2010. The collection rate has been doubled to 90% between 2006 and 2010. Average tariffs between 2008 and 2010 have also doubled. The regular technical and financial audits by Swiss consultants helped to further develop the technical and institutional capacity of the respective utilities.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • International Development Agency


Budget Current phase Swiss budget CHF   13'500'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   100'000'000
Project phases Phase 1 30.05.2012 - 31.12.2021   (Current phase)