Project Description

Project Name: Uzbekistan: Climate Resilience Water Supply Project – Feasibility study
Country: Republic of Uzbekistan
Period: 10/2019 - 08/2020
Client: EBRD / Ministry of Water Resources of the Republic of Uzbekistan
Provided services description:
Objective:
The Ministry of Water Resources (MoWR) of the Republic of Uzbekistan (RoU) has approached the European Bank for Reconstruction and Development (EBRD) with a request to finance modernization of irrigation water conveyance (IWC) infrastructure across the country and ancillary IWC infrastructure (the Project). EBRD has agreed to consider a loan to the RoU to finance the capex program. To appraise the Project and decide on its bankability, the EBRD has commissioned CECT Consulting, inzeniring in svetovanje d.o.o. to assist the EBRD and the MoWR in conducting the Feasibility study (FS) for the Project, including the assessment of water resource management in the RoU and determination of a Priority Investment Program (PIP) worth approximately USD 400 million for the Project. In parallel the Consultant will conduct Environmental and Social Audit and Assessment (ESAA) to evaluate the impacts and benefits of the PIP, including assessing its environmental and social feasibility and sustainability. The Consultant will also identify inefficiencies in the sector regulation, where reforms are required.
The Project Area was identified as 397,645 ha in use for irrigated agriculture by Water Consumer Associations (“WCAs”), mainly consisting of larger farming enterprises with 100-200 ha of land and smaller “dekhkan” enterprises with less than one ha of land each. The Project Area is serviced by 235 pumping stations, located across all 13 provinces of the RoU. The Project is expected to modernize and rehabilitate dilapidated IWC infrastructure built in the 1950-80s, as well as to strengthen adaptation to climate change, in response to increased water scarcity, including due to high population growth and rapid economic development.
Services within the FS include:
› Perform a water resource and demand assessment, taking into account expected changes (including availability, amounts, characterization, sources, quality, and impact of the Project on water resources, impacts of climate change, impact of ongoing liberalization of cotton production).
› Review the present and planned reconstruction of irrigation pumping stations in the Republic of Uzbekistan and confirm the Project’s economic rationale, taking into account the water resources, water consumers, potential introduction of tariffs and other water initiatives at the basin level.
› Based on satellite imagery and other available data, identify critical sections of water irrigation network which are cost efficient to rehabilitate, repair or replace to reduce substantive water losses/energy consumed.
› Assess whether the Project is technically sound and sustainable, and whether the proposed investments are the most effective, least cost investment program.
› Formulate the PIP for the identified measures. This shall include an assessment of its economic, social, environmental and water-/energy-efficiency benefits, using appropriate benchmarks as set out below.
› Conduct Environmental and Social Audit and Assessment of the existing facilities and operations and environmental and social conditions relevant to the Project.
› Provide inputs for a financial model that would enable the Bank to calculate EIRR and other relevant indicators.
› Determine an efficient implementation strategy for the PIP and assess procurement options for the effective delivery of investment solutions. Propose options to group the Project’s components into [five] sub-projects and rank them in order of priority.
› Review and describe the implementation arrangements, and assess the implementation capacity of the RoU, in line with EBRD’s Procurement Policies and Rules and identify potential gaps and the support needed.
› Conduct institutional assessment of the sector to identify options for the Bank to engage in policy dialogue, ensuring that synergies are achieved with on-going and planned activities of the EBRD and other IFIs in the country, including but not limited to: a) the design of an efficient and regional asset and water resource management mechanism, b) basin management approach, c) tariff setting mechanisms, d) consolidation of WCAs, etc. The Consultant should also provide international best practice examples for establishing an enhanced institutional setup in the irrigation sector and suggest a policy roadmap.
› Explore options for local deployment of renewables such as solar photovoltaics to augment energy supplies (where viable).
› Assess the potential impact of this investment on men and women users of the water services to be provided and, specifically, the extent to which this investment will not exacerbate existing gender inequalities but will rather help reduce gender gaps.
› Calculate EBRD’s standard measuring indicators and Green Economy Transition (GET) impact indicators.

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