World Bank, Building energy and water security through regional cooperation

1. Central Asia Energy–Water

Development Program
(CAEWDP)
Building energy and water security
through regional cooperation
January 2011

2. Cooperation changes development
The consequences of doing nothing  Potential benefits of intervention
1 600 million m3 potential water shortages 1 Over $2 billion savings from increased
(Syr Darya) energy trade, with environmental benefits in
reduced greenhouse gas emissions
2 2 million households experiencing winter
heat and power shortages 2 $7m/yr savings in public expenditures
from a 1% increase in water pumping efficiency in
3 90% less energy traded within Central one country
Asia since 1990
3 $200m/yr new revenues from energy experts
4 1% loss in GDP per year from weather- to South Asia from initial phases of CASAREM project
related disasters (in Tajikistan and Kyrgyz
Republic)
Major constraints to economic growth Accelerated investment, enhanced
and political stability 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

3. 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
Danube River
Basin national aspirations and priorities
Energy Community Turkey Power
Interconnection Eastern China
of South East Europe
South Asia
Power Markets • Nurture donor coordination
Red Sea/Dead Sea Indus River Water Initiative
Water conveyance
Senegal River Basin
Treaty India
Power
Mekong River Basin; • Address a package of three core
Eastern Nile
River Development
Grid
NT2 Hydropower
issues:
West Africa
Power Pool
Nile Equatorial 1 Physical, intellectual and management
Lakes River Basin
hubs for regional cooperation
Zambezi River 2 Objective analysis of the costs and
Basin
benefits of cooperation to national
interests
3 Investments to deliver infrastructure
Transboundary water management Regional energy markets
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

4. CAEWDP: An integrated program
Energy Investment
Development Preparation
Energy-Water Regional
Linkages Institutions
Supported by
• Global experience
• International panel of advisors
Water Diagnostics and
• Donor support
Productivity 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

5. 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 Donors
Organizatons • 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

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

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

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

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

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

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

12. 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 70 Submitted to Board
energy sector)
KAZ Alma Transmission Project 78 Under process
KAZ Syr Darya Control & Northern Aral Sea Phase II 165 Under process
Project
UZB Ferghana Valley Water Resources Management 65 Approved
Phase-I Project
KGZ Second On-farm Irrigation Project 16 Approved
TAJ Community Agriculture & Watershed Management 11 Approved
Project
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

13. 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

14. Opportunities for donor involvement
CAEWDP welcomes different avenues for cooperation
Opportunity How? Example
Exploit synergies Take advantage of common IFAS institutional support
program objectives EU Central Asia Investment Facility
Undertake joint Collaborate on methodologies USAID climate change
activities or technical assistance ADB Energy Sector Coordinating Cttee
activities
Support multi- Donor contributions to fund Swiss seed funds
donor trust fund core program activities 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