PARLIAMENTARY HEARINGS

VITAL ISSUES ON THE QUALITY OF DRINKING WATER

SUPPLY TO SETTLEMENTS OF KAZAKHSTAN
24 November, 10:0013:00, the Parliament of Kazakhstan

Giovanni Capannelli
Country Director
Kazakhstan Resident Mission
Asian Development Bank

I. Salutations

1. Dear Chairman Mr. Nigmatullin, distinguished members of the

Parliament, of the Government, and of the Administration of the
President of Kazakhstan, ladies and gentlemen:

II. Introduction

2. I would like to thank you for inviting me to share the

experience and vision of the Asian Development Bank (ADB) on
ways to improve the water sector in Kazakhstan, with special focus
on the supply of drinking water in rural areas. Please accept my
apologies for delivering this speech in English and not in Kazakh
or Russian language.

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3. President Nursultan Nazarbayev defined back in 2002 the
goals and objectives for providing clean drinking water to the
population. Since then, several programs such as the Drinking
Water program, the Ak-Bulak program, and the Regions
Development Program2020 have been implemented.

4. We support President Nazarbayevs long-term vision and we

believe the successful implementation of ongoing programs is a
very important step to realize the goals of Kazakhstans 2050
Strategy.

III. ADBs Experience in Kazakhstans water sector and the

New Country Partnership Strategy (2017-2021)

5. ADB has been actively engaging with Kazakhstan in the

improvement of integrated water resource management. In 2006,
we assisted in implementing the Drinking Water state program
through a 5.3 billion tenge-equivalent loan for a rural water supply
and sanitation project in South Kazakhstan, North Kazakhstan and
Akmola regions. Currently, we are working on: (i) the rehabilitation
of irrigation canals in five regions; (ii) the preparation of an
integrated water masterplan for the city of Astana; and (iii) the
creation of a Water Knowledge Center with the Agri-Tech Hub at
the Kazakhstan National Agrarian University in Almaty.

6. Honorable Members of the Parliament,

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7. ADB has been operating in Kazakhstan since 1994. Last
September, we introduced a new country partnership strategy,
which envisages ADB to invest up to one trillion tenge by the year
2021 in agriculture, water, energy, urban and rural development,
transport, health, education, and financing in support of small and
medium-sized enterprises. The aim of the Banks strategy is to
support Kazakhstan become one of the 30 most developed
countries in the world by 2050 and fulfill its global obligations under
the Sustainable Development Goals agenda. Implementing this
strategy will help diversify the economy of Kazakhstan, promote
inclusive development, and achieve green, sustainable growth to
improve the peoples living standards.

IV. Drinking Water Supply Project for Rural Settlements

8. We have recently discussed with the Government the

possibility to start a new project to deliver water supply in rural
areas. This project is expected to increase by more than four times
the current supply of water to the rural population. We were told
that total investment needs are more than 130 billion tenge.

9. ADB is happy to consider supporting this project, as we

understand the need for Kazakhstan to identify financing outside
the budget. In this regard, ADB can provide concessional financing
as a sovereign project at very attractive terms. Given the scale of

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investment and the impact of tariff increases, we urge policymakers
to consider the low-cost finance and long-term benefits offered by
sovereign lending.

10. ADB has accumulated substantial experience in rural water

supply across Asia. We realize that projects must fully consider the
situations in rural settlements, which vary from region to region,
and include arrangements to ensure their effective implementation.
It is also important to include elements that make these projects
sustainable in the long run. ADB can help Kazakhstan introducing
technical innovations and inducing institutional enhancements,
including direct tariff negotiations between water companies and
users associations. We can also help with capacity building of
utilities operations and training programs.

11. We have been studying the water sector for some time, and
found that Kazakhstan is still relatively weak in institutional
coordination. Reforms are needed to enhance the sustainability of
rural water projects and their effective implementation by ensuring
that all responsibilities related to the supply of drinking water in
rural areas are handled by one single agency. The ADB experience
indicates the need for institutional integration, allowing to deliver
water directly to end-users.

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12. I hope policymakers will support the proposal to consolidate
under a single authority all functions related to the delivery of
drinking water to rural settlements, directly to the household level.

V. Conclusions

13. Honorable Members of the Parliament,

14. ADB is a strong believer in the role this Assembly can play to
foster economic and social development. We are ready to continue
serving as a reliable partner for promoting the prosperity of the
peoples of Kazakhstan.

15. Thank you for your attention.