Building energy and water security through regional cooperation Central Asia Energy–Water Development Program (CAEWDP) January 2011

Central Asia Energy–Water Development Program Cooperation changes development Major constraints to economic growth and political stability 1 Over $2 billion savings from increased energy trade, with environmental benefits in reduced greenhouse gas emissions 2 $7m/yr savings in public expenditures from a 1% increase in water pumping efficiency in one country 3 $200m/yr new revenues from energy experts to South Asia from initial phases of CASAREM project million m 3 potential water shortages (Syr Darya) 2 2 million households experiencing winter heat and power shortages 3 90% less energy traded within Central Asia since % loss in GDP per year from weather- related disasters (in Tajikistan and Kyrgyz Republic) Accelerated investment, enhanced environmental quality and improved livelihoods The consequences of doing nothing Potential benefits of intervention Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program CAEWDP builds on global lessons Successful programs: Work with countries to build on national aspirations and priorities Nurture donor coordination 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 “ 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 ) Transboundary water managementRegional energy markets Eastern Nile River Development Energy Community of South East Europe Mekong River Basin; NT2 Hydropower Senegal River Basin West Africa Power Pool India Power Grid South Asia Water Initiative Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration Indus River Treaty Eastern China Power Markets Danube River Basin Turkey Power Interconnection Red Sea/Dead Sea Water conveyance Nile Equatorial Lakes River Basin Zambezi River Basin

Central Asia Energy–Water Development Program Investment Preparation Water Productivity Diagnostics and Analysis Energy-Water Linkages Regional Institutions Energy Development CAEWDP: An integrated program Supported by Global experience International panel of advisors Donor support Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

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

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-Water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacityPlanned Winter energy Scoping StudyUnderway Plan for Kyrgyz Rep and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Agricultural water expert forumPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Planned Program Foundations ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-Water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacity Planned Winter energy Scoping Study Underway Plan for Kyrgyz Rep and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Establishment of Ag Water Specialists’ PlatformPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Program Foundations ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway CASA 1000 and UAP (CASAREM) Objective: Diversify Central Asia energy markets by connecting energy deficits in South Asia. Activities: For CASA: Feasibility studies, Environmental and Social impact assessment; Capacity building; Specialist support for all countries. For UAP: Feasibility assessment started Budget: $3mTimeline: Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacity Planned Winter energy Scoping Study Underway Complete Plan for Kyrgyz and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Establishment of Ag Water Specialists’ PlatformPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Program Support ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway Energy-water modeling Objective: Establish a common platform for analysis, accepted by and useful to all countries ; Support both collective and national dialogue on regionally significant initiatives. Activities: National and regional workshops for model design, Model inventory and assessment, Model development and integration of existing tools ; Regional expert team supported by international colleagues. Budget: $3mTimeline: Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-Water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacity Planned Winter energy Scoping Study Completed Plan for Kyrgyz Rep and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Establishment of Ag Water Specialists’ PlatformPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Program Support ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway Regional Hydrometeorology Program Objective: Improve coordination and training between National Hydrometeorological Services of the Central Asian countries to strengthen data quality and quantity, and data sharing Activities: Draft MOU and program of regional activities and investments (completed); Improve capacity of CA NMHSs, Improved early warnings, Systems integration, Regional system of training and professional development. Budget: $5mTimeline: Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-Water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacity Planned Winter energy Scoping Study Underway Plan for Kyrgyz Rep and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Establishment of Ag Water Specialists’ PlatformPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Program Foundations ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway Third Aral Sea Basin program Objective: Support range of proposals from Central Asian country experts to improve water management Activities: Assist in identifying strategic opportunities; Convene national experts; Fund specific initiatives focused on water productivity Budget: $5-8mTimeline: Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program A comprehensive set of activities Energy-Water Linkages ($12M) Energy-Water Modeling Reg model architectureUnderway Reg Model DevelopmentPlanned Regional HydrometeorologyInitiated Climate Vulnerability: Energy Underway Dialogue Rogun dialogueInitiated Energy-water experts forumPlanned Energy Development ($9m) Energy Infrastructure Planning Regional Infrastructure Master Plan Diagnostic Study [ADB]Completed Complete Plan [ADB]Initiated Planning capacity Planned Winter energy Scoping Study Underway Plan for Kyrgyz Rep and TajikPlanned Regional Energy Trade Trade DiagnosticCompleted Recommendations from diagnosticPlanned Regional Energy Markets Assistance [USAID] Initiated Inter-Regional Energy Trade CASA 1000/UAP/NS TransmissionUnderway Energy Accountability Planned Institutional Development ESCC Dialogue/Expert ForumUnderway Water Productivity ($12m) Capacity Strengthening Ag Water Capacity Needs AssessmentPlanned Capacity StrengtheningPlanned Establishment of Ag Water Specialists’ PlatformPlanned Infrastructure and Management Opportunities IFAS/ARAL Sea Basin PackageInitiated National Action Plans for Water Productivity Planned Rehabilitation of Energy and Water Infrastructure Program Foundations ($7M) Regional institutionsInitiated Expert PanelInitiated CoordinationUnderway International Panel of Advisors Objective: Provide independent advice and international state-of-the -art expertise Activities: Identification and funding of experts for specific stated needs (e.g., program development, project assessment) Budget: $4mTimeline: Program life Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program Regional challengesCAEWDP solutionExpected benefitsWhy 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

Central Asia Energy–Water Development Program 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 Regional challengesCAEWDP solutionExpected benefitsWhy now, why the World Bank?What will be delivered, and when?Opportunities for donor collaboration

Central Asia Energy–Water Development Program Opportunities for donor involvement Regional challenges CAEWDP solution Expected benefits Why now, why the World Bank? What will be delivered, and when? Opportunities for donor collaboration OpportunityHow?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 multi- donor trust fund Donor contributions to fund core program activities Swiss seed funds DFID Administrative Arrangement (in preparation) CAEWDP welcomes different avenues for cooperation