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 DUSHANBE 00001717 002.2 OF 004 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 DUSHANBE 00001717 003.2 OF 004 ¶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 DUSHANBE 00001717 004.4 OF 004 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