The water sector in Central Asia faces an annual investment shortfall of $2 billion

Central Asian countries face an annual funding shortfall of around $2 billion in the water sector. This is stated in the Eurasian Development Bank’s (EDB) 2024 study, ‘Drinking Water Supply and Sanitation in Central Asia’.

Against the backdrop of this investment shortfall, the Ministry of Water Resources of Uzbekistan, the Eurasian Development Bank and the Eurasian Stabilisation and Development Fund have signed a memorandum on the modernisation of 95 pumping stations. The document was signed at the Tashkent International Investment Forum.

According to an EDB study, the wear and tear of water supply networks in the region’s countries reaches 80 per cent, whilst water losses amount to up to 55 per cent. Experts cite a chronic lack of infrastructure funding as one of the reasons for this situation.

The project in Uzbekistan involves the modernisation of pumping stations in the Bukhara, Navoi, Kashkadarya, Samarkand and Surkhandarya regions. Plans include the introduction of digital monitoring systems and energy-efficient technologies, which are expected to improve the management of water resources and reduce energy consumption.

Utkir Sheraliev, Deputy Minister of Water Resources of Uzbekistan, noted that pumping stations play a key role in supplying water to the agricultural sector, and that their modernisation will improve the reliability of the irrigation system.

Alexey Skatin, Deputy Chairman of the EDB’s Management Board, emphasised that the infrastructure being modernised serves thousands of hectares of agricultural land. According to him, investment in such projects can generate economic returns several times greater than the amount invested.

The EFSD also stated its readiness to consider participating in the project’s preparation, including providing technical and expert support, as well as exploring possible financing mechanisms.

It is expected that the modernisation of 95 pumping stations will improve the reliability of the water supply, reduce electricity costs and lay the foundations for the further digitalisation of water resource management.