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Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Acronyms and abbreviations 8

Executive Summary 9

1. Introduction 11

References 13

Notes 13

2. Water security in Uzbekistan: A cornerstone for growth 14

2.1. Increasing pressures on a water-stressed country 15

2.2. Improving water efficiency: a national priority for Uzbekistan 17

References 18

Notes 19

3. Assessing Uzbekistan's enabling environment for investment in water security 20

3.1. An overview of the OECD Scorecard for assessing the enabling environment for investment in water security 21

3.2. The enabling environment for investment in Uzbekistan: an uneven landscape for investment 22

3.2.1. Dimension 1: Emerging evidence of a promising policy framework for investment 23

3.2.2. Dimension 2: Further reforms to the water policy framework for investment are needed 27

3.2.3. Dimension 3: Limited sustainability and bankability of water-related projects 36

3.2.4. Dimension 4: The performance of other economic sectors demonstrates a relatively positive contribution to water security,... 38

References 41

Notes 42

4. Deploying Public-Private Partnerships for water security in Uzbekistan 44

4.1. Barriers and opportunities for scaling up public-private partnerships in water-related sectors 45

4.1.1. Numerous small public-private partnerships have been signed for the operation of pumping stations 46

4.1.2. Current strategy for the implementation of water-related public-private partnerships in Uzbekistan 48

4.1.3. Two routes of market entry for public-private partnerships 49

4.1.4. Addressing the commercial risk associated with low tariffs 50

4.2. Public-private partnerships in irrigation: a national priority requiring further support 50

4.2.1. Contractual forms for irrigation vary significantly internationally 52

4.2.2. Project, market and institutional barriers to address for irrigation public-private partnerships in Uzbekistan: insights from... 52

4.2.3. Considering risk allocation for public-private partnerships in irrigation 54

References 56

Notes 57

5. Technologies and innovation for water efficiency and demand management 58

5.1. Understanding the relevance of Korea's water technology experience for application in Uzbekistan 59

5.2. Technical innovation proposals have been targeted at priority areas, in line with Uzbekistan's strategy for water 2020-2030 60

6. Recommendations and action plan from the National Policy Dialogue 63

6.1. Clarify and consolidate the PPP regulatory framework to attract investment in water and wastewater services 64

6.2. Improve PPP oversight and governance to ensure long-term sustainability 64

6.3. Remove barriers to PPP implementation in water-related sectors 65

6.4. Strengthening water sectors sustainability through economic instruments reform, service improvements and cross-sectoral coherence 66

6.5. Enhancing water and wastewater services performance to attract additional financing 66

6.6. Update technical standards and promote innovation to safeguard water security 67

6.7. Expand and upgrade water-related education and training programmes 67

6.8. Action plan 68

Annex A. PPPs: definitions and status in Uzbekistan 72

References 76

Notes 76

Tables 7

Table 3.1. Uzbekistan Country Statistics 2023 26

Table 3.2. Water abstraction charge per type of user and body 30

Table 4.1. Private-sector participation in drinking-water and wastewater services in urban areas in Uzbekistan: key contracts 48

Table 4.2. Contractual forms of public-private partnerships for irrigation 52

Table 4.3. Common risks associated with irrigation public-private partnerships 55

Table 5.1. Assessment of areas for implementation of new technologies 61

Table 6.1. Tailored action plan to develop water security in Uzbekistan 69

Figures 7

Figure 3.1. The four dimensions of the enabling environment scorecard are designed to present a comprehensive overview of barriers... 21

Figure 3.2. The enabling environment for water security in Uzbekistan still shows room for improvement 23

Figure 3.3. Uzbekistan shows strengths in terms of overall investment framework in comparison with regional partners 24

Figure 3.4. Indicators in Dimension 1 highlight that Uzbekistan performs similarly to regional counterparts 25

Figure 3.5. Strengths in water resource allocation and conflict resolution, and limitations in data collection and economic instruments... 28

Figure 3.6. Examining the water-supply policy framework points to clear areas for improvement in both capacity levels and future... 32

Figure 3.7. Projects demonstrate a strong level of stakeholder involvement, but limited scores in cost-benefit analysis and pooling... 37

Figure 3.8. Investments toward ensuring a water-secure future shows clear strengths but underscore the need to improve economic... 39

Figure 4.1. Project costs for public-private partnerships are highly variable across industries 46

Figure 4.2. Distribution of public-private partnerships in water-related sectors in Uzbekistan 47

Boxes 7

Box 4.1. The first international public-private partnership in irrigation: the Guerdane project in Morocco 53

Annex Tables 7

Table A A.1. Agencies in Uzbekistan related to water-supply and sewerage services 75

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