Central Asia Energy–Water
Development Program

(CAEWDP)
uilding energy and water security
B
through regional cooperation
January 2011
Cooperation changes development
The consequences of doing nothing

1
1 
Over $2 billion savings from increased energy
600 million m3 potential water shortages
Potential benefits of intervention
(Syr Darya)
2
2 million households experiencing winter
heat and power shortages
3
2
1% loss in GDP per year from weather-
$7m/yr savings in public expenditures
from a 1% increase in water pumping efficiency in
one country
90% less energy traded within Central
Asia since 1990
4
trade, with environmental benefits in reduced
greenhouse gas emissions
3
$200m/yr new revenues
from energy experts
to South Asia from initial phases of CASAREM project
related disasters (in Tajikistan and Kyrgyz
Republic)
Major constraints to economic growth
and political stability
Accelerated investment, enhanced

environmental quality and improved livelihoods
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
CAEWDP builds on global lessons
“Regional programs offer substantial potential to achieve results on development issues… regional projects
have successfully built new assets and protected existing ones in ways expected to benefit all
participating countries.”
(Independent Evaluation Group (2007) Evaluation of World Bank Support of Multicountry Operations )
Successful programs:
• Work with countries to build on
national aspirations and priorities
Danube River
Basin
Energy Community
of South East Europe
Turkey Power
Interconnection
Eastern China
Power Markets
• Nurture donor coordination
South Asia
Water Initiative
Red Sea/Dead Sea
Indus River
Water conveyance
Treaty
India
Senegal River Basin
Power
Eastern Nile
Grid
River Development
West Africa
Nile Equatorial
Power Pool
Lakes River Basin
Mekong River Basin;
NT2 Hydropower
Zambezi River
Basin
Transboundary water management
Regional energy markets
• Address a package of three core
issues:
1 Physical, intellectual and management
hubs for regional cooperation
2 Objective analysis of the costs and
benefits of cooperation to national
interests
3 Investments to deliver infrastructure
and strengthen livelihoods
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
CAEWDP: An integrated program

Energy
Development
Investment
Preparation
Regional
Institutions
Energy-Water
Linkages
Supported by
• Global experience
Water
Productivity
• International panel of advisors
• Donor support
Diagnostics and
Analysis
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
Partnerships are critical
National Governments
• Unique national interests and priorities
• National technical experts
National
Governments
Regional Organizations
• ESCC Energy Action Plan (with ADB)
• EC-IFAS Third Aral Sea Basin
Management Program
World Bank
Regional
Organizatons
Donors
• Strong portfolios in energy and water;
Donors
•
World Bank fills a recognized gap in
the energy-water nexus
Joint activities are underway; Interest
in new investment opportunities
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-Water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Completed
Initiated
Planned
Winter energy
Scoping Study
Plan for Kyrgyz Rep and Tajik
Underway
Planned
Regional Energy Trade
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
Capacity Strengthening
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Agricultural water expert forum
Climate Vulnerability:
Energy
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
Initiated
Planned
Planned
Planned
Planned
IFAS/ARAL Sea Basin Package
Initiated
National Action Plans
for Water Productivity
Planned
Rehabilitation of Energy and Water
Infrastructure
Planned
Inter-Regional Energy Trade
CASA 1000/UAP/NS Transmission Underway
Energy Accountability
Planned
Program Foundations ($7M)
Underway
Regional institutions
Expert Panel
Coordination
Institutional Development
ESCC Dialogue/Expert Forum
Initiated
Initiated
Underway
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-Water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Planned
Completed
Initiated
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Climate Vulnerability:
Energy
Winter energy
Scoping Study
Plan for Kyrgyz Rep and Tajik
Underway
Planned
Regional Energy Trade
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
Inter-Regional Energy Trade
Capacity Strengthening
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Establishment of Ag Water
Specialists’ Platform
Planned
Planned
Planned
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
Initiated
Planned
CASA 1000 and UAP (CASAREM)
IFAS/ARAL Sea Basin Package
Initiated
National Action Plans
for Water Productivity
Planned
Rehabilitation of Energy and Water
Objective: Diversify Central Asia energyInfrastructure
markets by connecting energy
deficits in South Asia .
CASA 1000/UAP/NS Transmission Underway
Energy Accountability
Planned
Institutional Development
ESCC Dialogue/Expert Forum
Underway
Activities: For CASA: Feasibility studies,Program
Environmental
and Social impact
Foundations
($7M)
assessment; Capacity building; Specialist support for all countries.
Initiated
For UAP: Feasibility assessment startedRegional institutions
Expert Panel
Coordination
Budget: $3m
Timeline: 2010 - 2013
Initiated
Underway
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Planned
Completed
Initiated
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Climate Vulnerability:
Energy
Winter energy
Scoping Study
Underway
Complete Plan for Kyrgyz and Tajik Planned
Regional Energy Trade
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
Inter-Regional Energy Trade
CASA 1000/UAP/NS Transmission Underway
Energy Accountability
Planned
Institutional Development
ESCC Dialogue/Expert Forum
Capacity Strengthening
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Establishment of Ag Water
Specialists’ Platform
Planned
Planned
Planned
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
Initiated
Planned
Energy-water modeling
IFAS/ARAL Sea Basin Package
Initiated
National Action Plans
for Water Productivity
Planned
Rehabilitation
ofaccepted
Energy andby
Water
Objective: Establish a common platform
for analysis,
and
Infrastructure
useful to all countries ; Support both collective and national dialogue on
regionally significant initiatives.
Program
Support
($7M)
Activities: National and regional workshops
for model
design, Model
inventory and assessment, Model development
and integration of
existing
Regional institutions
Initiated
tools ; Regional expert team supported Expert
by international
colleagues.
Panel
Initiated
Coordination
Underway
Budget: $3m
Underway
Timeline: 2011-2013
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-Water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Planned
Completed
Initiated
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Climate Vulnerability:
Energy
Winter energy
Scoping Study
Plan for Kyrgyz Rep and Tajik
Completed
Planned
Regional Energy Trade
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
Inter-Regional Energy Trade
CASA 1000/UAP/NS Transmission Underway
Energy Accountability
Planned
Institutional Development
ESCC Dialogue/Expert Forum
Underway
Capacity Strengthening
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Establishment of Ag Water
Specialists’ Platform
Planned
Planned
Planned
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
IFAS/ARAL Sea Basin Package
Initiated
Planned
Regional Hydrometeorology
National Action Plans
for Water Productivity
Program
Initiated
Planned
Rehabilitation of Energy and Water
Objective: Improve coordination and training
between National
Infrastructure
Hydrometeorological Services of the Central Asian countries to strengthen
data quality and quantity, and data sharing
Program Support ($7M)
Activities: Draft MOU and program of regional activities and investments
(completed); Improve capacity of CA NMHSs,
RegionalImproved
institutions early warnings,
Initiated
Panel and professionalInitiated
Systems integration, Regional system ofExpert
training
development.
Coordination
Budget: $5m
Underway
Timeline: 2011- 2014
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-Water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Planned
Completed
Initiated
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Climate Vulnerability:
Energy
Winter energy
Scoping Study
Plan for Kyrgyz Rep and Tajik
Underway
Planned
Regional Energy Trade
Capacity Strengthening
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Establishment of Ag Water
Specialists’ Platform
Planned
Planned
Planned
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
Initiated
Planned
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
Third Aral Sea Basin program
Objective: Support range of proposals from Central Asian country experts to
improve water management
IFAS/ARAL Sea Basin Package
Initiated
National Action Plans
for Water Productivity
Planned
Rehabilitation of Energy and Water
Infrastructure
Inter-Regional Energy Trade
CASA 1000/UAP/NS Transmission Underway
Activities:
Assist in identifying
Energy
Accountability
Planned strategic opportunities; Convene national
experts; Fund specific initiatives focused on water productivity
Institutional Development
ESCC
Dialogue/Expert
Budget:
$5-8mForum
Underway
Timeline: 2011 - 2014
Program Foundations ($7M)
Regional institutions
Expert Panel
Coordination
Initiated
Initiated
Underway
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
A comprehensive set of activities
Energy Development ($9m)
Energy-Water Linkages ($12M) Water Productivity ($12m)
Energy Infrastructure Planning
Regional Infrastructure Master Plan
Energy-Water Modeling
Diagnostic Study [ADB]
Complete Plan [ADB]
Planning capacity
Planned
Completed
Initiated
Reg model architecture
Reg Model Development
Regional Hydrometeorology
Climate Vulnerability:
Energy
Winter energy
Scoping Study
Plan for Kyrgyz Rep and Tajik
Underway
Planned
Regional Energy Trade
Capacity Strengthening
Underway
Planned
Initiated
Ag Water Capacity
Needs Assessment
Capacity Strengthening
Establishment of Ag Water
Specialists’ Platform
Planned
Planned
Planned
Underway
Infrastructure and
Management Opportunities
Dialogue
Rogun dialogue
Energy-water experts forum
Initiated
Planned
Trade Diagnostic
Completed
Recommendations from diagnosticPlanned
Regional Energy Markets
Assistance [USAID]
Initiated
International Panel of Advisors
Objective: Provide independent advice and international state-of-the
-art expertise
CASA 1000/UAP/NS Transmission Underway
IFAS/ARAL Sea Basin Package
Initiated
National Action Plans
for Water Productivity
Planned
Rehabilitation of Energy and Water
Infrastructure
Inter-Regional Energy Trade
Activities:
IdentificationPlanned
and funding of experts for specific stated
Energy
Accountability
needs (e.g., program development, project assessment)
Institutional Development
ESCC Dialogue/Expert Forum
Budget: $4m
Underway
Timeline: Program life
Program Foundations ($7M)
Regional institutions
Expert Panel
Coordination
Initiated
Initiated
Underway
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
World Bank Energy-Water Portfolio in Central Asia
CAEWDP complements national initiatives
Country
Examples of Recent Projects
Amount ($M)
Status
KGZ
Emergency support
4
Approved
TAJ
Emergency winter shortage support
15
Approved
UZB
Energy Efficiency Fund for Industrial Enterprises
25
Approved
KGZ
Emergency recovery project (covering budget and
energy sector)
70
Submitted to Board
78
Under process
KAZ
Alma Transmission Project
KAZ
Syr Darya Control & Northern Aral Sea Phase II
Project
165
Under process
UZB
Ferghana Valley Water Resources Management
Phase-I Project
65
Approved
KGZ
Second On-farm Irrigation Project
16
Approved
TAJ
Community Agriculture & Watershed Management
Project
11
Approved
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
Moving forward
1 Maintain momentum on work program implementation

(complete current activities; initiate new ones)
2
Deepen dialogue with national governments
3
Secure financing and donor involvement
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration
Opportunities for donor involvement
CAEWDP welcomes different avenues for cooperation
Opportunity
How?
Example
Exploit synergies Take advantage of common
program objectives
IFAS institutional support
EU Central Asia Investment Facility
Undertake joint
activities
Collaborate on methodologies
or technical assistance
activities
USAID climate change
ADB Energy Sector Coordinating Cttee
Support multidonor trust fund
Donor contributions to fund
core program activities
Swiss seed funds
DFID Administrative Arrangement (in
preparation)
Central Asia Energy–Water Development Program

Regional challenges

CAEWDP solution
Expected benefits
Why now, why the World Bank?
What will be delivered, and when?
Opportunities for donor collaboration