TAJIKISTAN - AN OCEAN OF IRONY: ABUNDANT WATER IN A

UNCLAS SECTION 01 OF 04 DUSHANBE 001717

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, OES

E.O. 12958: N/A
TAGS: PGOV PREL EAID SENV TBIO TI
SUBJECT: TAJIKISTAN - AN OCEAN OF IRONY: ABUNDANT WATER IN A
DESERT-LIKE, MOUNTAINOUS, LANDLOCKED COUNTRY

REF: STATE 128229

DUSHANBE 00001717 001.2 OF 004



1. (U) SUMMARY: Water gushes down the mountains of
Tajikistan, the most water-rich country in Central Asia. Yet
people lack clean drinking water, utilities are poorly managed,
and poor irrigation hinders agricultural development. There
exists tremendous potential for hydropower development for
energy export, but the government has not yet been able to
harness this resource to its benefit. Tajikistan remains
plagued by crumbling Soviet irrigation, water supply and
sanitation systems. Transboundary water sharing issues are a
constant threat to political peace with neighboring Uzbekistan,
while Afghanistan could become a strategic water partner. The
government recognizes the challenges it faces and political will
from the top rains down, but Tajikistan needs assistance from
international partners in order to soak up its potential and
develop its water infrastructure. United States assistance can
make a big impact locally to reduce suffering from water-borne
diseases and region-wide by facilitating resolutions to tough
transboundary water issues. END SUMMARY.


GOVERNMENT ENTHUSIASM SPRINGS WHILE BUDGET TRICKLES


2. (SBU) Water is Tajikistan's greatest resource and the Tajik
government recognizes the power of harnessing its potential. In
2003, at the initiative of Tajikistan's President Rahmonov, the
UN General Assembly declared 2005-2015 the Decade of Water for
Life. Political will from the top is genuine and the government
is committed to supplying the population with potable water,
reforming its water utilities management system and investing in
improved infrastructure. To accomplish these goals, however,
the Ministry of Water needs $800-900 million. With an
internally-funded fiscal budget of USD 500 million, Tajikistan
currently provides 8.5 million Tajik Somoni (TJS) or the
equivalent of 2.4 million USD each year for water activities,
60% of which goes towards the salaries of the ministry's 17,000
employees. Tajikistan relies mainly on foreign donors such as
the World Bank and Asian Development Bank to provide financing
for water projects.



3. (SBU) The president has proposed a plan to supply water to
the majority of the country by 2020. The plan has been sent to
all ministries for clearance and the president hopes it will be
approved by October 2006. The government plans to allot $5-6
million of its own funds towards the project. U.S. assistance
in coordination with other donors could provide needed resources
to supplement the government's funds. The MoW is also proposing
several amendments and new legislation to parliament that would
improve water sanitation and management, including legislation
that would bolster USAID's Water Users Association program.

PRIORITY NO. 1 - I CAN'T DRINK THE WATER!


4. (U) The first priority for the Tajik government is to
provide the population with clean drinking water. Tajikistan's
Soviet-built 1960s water supply and sewage system is in dire
need of repair. In urban areas, 93 percent of the population
has running water, but only 43 percent in rural areas. In major
cities, 80 percent of the population is connected to sewer
facilities, but only five percent in rural areas. Residents
routinely report water outages when the old equipment breaks
down or electricity is cut off and pumping stations cannot
operate. Tajikistan's landscape is 93 percent mountainous and
many homes rely on pumping stations to supply water. Some rural
residents rely on open above ground canals for their water.
Children often play in the same water canal they drink from and

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bathe in.


5. (U) As anyone who has turned on a tap in Dushanbe knows,
water from the faucet often resembles tea, and sometimes in
certain neighborhoods, a stew, complete with rocks and leaves.
No large-scale filtration system exists, leaving the public
vulnerable to a high occurrence of water-borne diseases.
Currently, water purification is minimal; water reservoirs are
chlorinated, but this does not save water from contamination in
the corroded pipelines.


6. (SBU) The World Bank is attempting to help bring potable
water to Dushanbe through a $20 million project. The project is
in jeopardy, however, because the Islamic Development Bank has
dragged its feet on its part of the project's implementation.
IDB has not managed to clean Dushanbe's water basin, which
causes the dirty water to destroy the World Bank's newly
installed equipment that is supposed to clean the water supply.
The World Bank has temporarily suspended installing new
equipment. If IDB follows through with its commitment, this
project would provide 70 percent of Dushanbe's population with
clean drinking water.


PRIORITY NO. 2 - REFORM UTILITIES MANAGEMENT TO PRECIPITATE
ECONOMIC GROWTH


7. (SBU) Two-thirds of the population works in agriculture,
but delays in timely water delivery to farms result in huge
economic losses for farmers, who in turn are not able to pay
their bills and become more indebted. Without the USD 180
million annual subsidy the Soviet Union used to pour into
maintenance of irrigation systems, farmers cannot maximize
production. The government currently spends USD three million
annually for maintenance, which is funded through budget
supplementals.


8. (SBU) Getting farmers to pay for water affects not only the
water industry but the electricity sector. The revenue-poor MoW
is plagued by residents, farmers, and businesses refusing to pay
for their water usage. Farmers owe the MoW 55 million Tajik
Somoni (TJS),the equivalent of $16 million. Of this amount,
the MoW owes 22 million TJS to the Ministry of Energy and Barqi
Tojik (the state electric utility) for energy consumption. The
MoW's facilities consume 18 percent of Tajikistan's electric
power production. In the mid and late autumn, the lack of
reliable electricity means that pumping stations cannot function
and farmers cannot sow winter crops. The government faces a
dilemma as the MoW cannot simply cut off water to people who do
not pay their bills; it would be a political disaster. The MoW
has tried to bring private companies to court in an attempt to
force them to pay.


9. (U) USAID's Water Users Association program has been a
tremendous success training farmers how to properly maintain and
manage water resources and develop sound financial management.
WUAs have addressed payment issues by introducing water meters
to communities. Water meters are a transparent tool that allows
both the government and user to accurately measure the amount of
water used so that the user can pay the proper amount. Through
this program, farmers now are beginning to pay the MoW and water
payments have increased by 40 percent. If this program can be
replicated throughout the country, it would dramatically
increase financial resources for the MoW to carry out necessary
projects and infrastructure rehabilitation.

PRIORITY NO. 3- RIVER BANK REINFORCEMENT SAVES LIVES AND MONEY

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10. (U) Each year the Tajik government spends over one million
USD reinforcing river banks and cleaning up after flood damage.
This year, the Asian Development Bank has provided $8.3 million
in credit for bank reinforcement projects along the Pyanj River,
which borders Afghanistan. Next year, ADB will provide $22
million in credit to complete bank reinforcement projects. Bank
reinforcement will save lives, property and economic
livelihoods.

AN OVERARCHING PRIORITY- GOOD NEIGHBORS AND TRANSBOUNDARY
COOPERATION


11. (U) Living in a closely knit and politically sensitive
neighborhood, like it or not, the Central Asian countries need
to work together to resolve transboundary water issues.
Tajikistan needs to address watersharing issues before moving
forward with larger hydropower projects. Embassy Dushanbe and
the Afghan Reconstruction Group facilitated preliminary
bilateral water discussions between the Tajik and Afghan
governments in Tajikistan, which resulted in the drafting of a
Memorandum of Understanding (MoU) to address transboundary water
issues and cooperation between the two countries. This MoU will
help to lay the groundwork for future frequent and closer
bilateral discussions, increased cooperation on monitoring river
flows, and cooperation on infrastructure projects such as
hydropower dams. Establishing a solid cooperative relationship
between the two countries now is crucial to ensuring that future
projects are not hindered due to squabbling over water rights.


12. (SBU) Tajikistan's relationship with Uzbekistan has been
less cooperative. During the Soviet period, water-supplying
republics (Tajikistan and Kyrgyzstan) traded with energy
supplying republics (Uzbekistan and Kazakhstan) as part of a
centrally planned and enforced regional economy. That balance
has broken down in post-Soviet Central Asia. The Tajik
Minister of Water says that he spends at least one hour each day
trying to resolve water issues with Uzbek authorities. The
media reports Uzbekistan threatening to cut off Tajikistan's
electricity supply if it does not pay its energy bill or supply
Uzbekistan with more water. As the country with the most water
resources in Central Asia, downstream countries such as
Uzbekistan rely on Tajikistan to supply water to its farms.
Uzbekistan has also opposed Tajikistan's plans to build
additional hydropower stations that may reduce the flow of water
to Uzbekistan, and also make Tajikistan less reliant on Uzbek
electricity. Many Tajiks believe Uzbekistan may become more
aggressive toward Tajikistan if Tashkent feels threatened by
Tajikistan's increased cooperation with other countries in the
region.


13. (U) Another key transboundary issue is reviving the Aral
Sea's ever-diminishing water level. The Aral Sea is the biggest
environmental disaster in Central Asia due to years of Soviet
agricultural practices demanding river diversions that deplete
the sea. Despite international conferences and partnerships to
address the problem, no resolution is on the horizon.


U.S. ENGAGEMENT - A FAUCET IN A PARCHED DESERT


14. (U) Measures the U.S. can use to assist Tajikistan in
solving it water problems include:

-- Increase the number of exchanges for government officials as
well as technical experts to the United States to learn about
the spectrum of water issues from sanitation to irrigation to

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transboundary water management;

-- Promote new efficient technology such as pumping stations
that would rely on half the electricity, modern irrigation
technology such as drip irrigation, machinery to dig wells in
rural areas, and filters

-- Provide technical assistance so that Tajik politicians and
decision-makers can better understand reforms needed.

-- Expand support for USAID's Water User's Associations programs
which train farmers how to manage and properly maintain water
resources;

-- Co-finance IFI projects; and

-- Continue to support and facilitate dialogue between Central
Asian nations to address transboundary water issues,
particularly between Afghanistan and Tajikistan.


15. (U) COMMENT: Tajikistan's water needs are basic and the
United States can make a big impact with financial or technical
support. By providing assistance in the realm of water we will
address one of the government's top priorities as well as allow
the people of Tajikistan in urban and rural areas to benefit
from tangible and direct U.S. assistance. Post would welcome
technical assistance from U.S. government agencies either by
hosting experts or collaborating with domestic offices to
provide training for Tajiks. In line with the Central Asian
Infrastructure Integration Initiative, post will remain involved
in hydropower and energy issues and identify opportunities for
U.S. business involvement. END COMMENT.JACOBSON