Water

Country Water Action: Kyrgyz Republic
Parliament Mulls over Selling Water to Uzbekistan
(December 2006)

To tax or not to tax—this is the question that Kyrgyz Republic parliamentarians are mulling over about neighbor Uzbekistan's use of their country's water resources. Uzbekistan has recently announced its plan to raise fuel prices, which would directly impact on the Kyrgyz Republic's energy sector. Will the Kyrgyz Republic's use of water as a bargaining chip stop this brewing conflict?

Contents Water Sharing Problems Water and Energy Link Opposing Views on Water Tax Water as a Political Tool

When the Government of Uzbekistan announced plans to increase gas prices from US$55 to US$100 per 1,000 cubic meters, a water and energy issue began brewing in Central Asia.

The Kyrgyz Republic does not have oil and gas reserves. It is one of Uzbekistan's biggest customers, with an annual average gas consumption of 850 million cubic meters. With the fuel price increase to take effect on 1 January 2007, the country's energy sector would surely feel the blow.

The impending price hike prompted Kyrgyz parliamentarians to debate on the issue of water taxation for their neighbor. The Kyrgyz Republic, after all, does have abundant water resources, which it shares with Uzbekistan, Kazakhstan, and Tajikistan to irrigate agricultural land. "We spend huge amounts of money on the maintenance and repair of reservoirs. But our neighbors use water free of charge," says deputy of parliament Temir Sariev.

Ernest Karybekov, Head of the Kyrgyz Republic's Power, Mining, and Natural Resources Department, is open to the idea of taxing Uzbekistan's water supply. "Experts and scientists say that next year, water will not be sufficient for our hydroelectric power stations and for the agricultural needs of Uzbekistan. Therefore, we need collect more water than we did this year in our reservoirs," he explained.

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Uzbekistan is one of the world's largest natural gas producer and a major oil source for many countries. Apart from the Kyrgyz Republic, Uzbekistan exports natural gas to Kazakhstan, Russia, Ukraine, and Tajikistan. The Kyrgyz Republic pays cash for 50 percent of the gas it imports. The rest is paid "in kind" with the republic's abundant commodity—water.

Uzbekistan sources more than 70 percent of its water supply from the rivers of its Central Asian neighbor for its power-generating stations and agriculture fields. Two major Central Asian rivers, the Amu-Darya and Syr-Darya, flow from Kyrgyz Republic to Uzbekistan.

Kazakhstan, the Kyrgyz Republic, and Uzbekistan have several agreements to regulate water use. In broad terms, the Kyrgyz Republic assures water supply and electric power to Kazakhstan and Uzbekistan in the summer for irrigation purposes, while Kazakhstan and Uzbekistan provide fuel to the Kyrgyz Republic to generate hydroelectricity during the winter months. But the implementation of these agreements has not always been straightforward.

The Institute of Water Problems and Water-Power Engineering of the Kyrgyz National Academy of Sciences determined the cost generated by the use of water in the country. Results show that water consumption amounted to about US$83.7 million in 2001, and is predicted to increase dramatically in the coming years. With neighboring countries using up to 22 billion cubic meters of water from the Kyrgyz water reservoir annually, the sum of annual receipts this year alone is expected to be more than US$12 million.

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Kyrgyz officials, however, seem to be divided about plans to turn water into an income-generating resource. Government, private lawyers, and even scientists are not keen on the idea, saying that "water cannot be a subject of bargaining." Deputy of parliament Alisher Sabirov says, "We cannot sell water. Water is a gift from God."

But Kyrgyz parliamentarians all agree on one thing: that the country has to find money to pay for the imported natural gas. Sariev suggests, "We should take payment not for water, but for the delivery of water."

Kyrgyz farmers, who pay for their water consumption, have their own view. Cotton and corn farmer Azamat Kasymov who has fields near the Kyrgyz-Uzbek border pays about US$60 to 80 annually for his water consumption. Kasymov complains, "Why should I pay for water? My Uzbek neighbors do not pay their government for water."

He urged the Kyrgyz government to demand water payment from Uzbekistan. This money, he said, should be spent for the repair and maintenance of water infrastructure and the building of water treatment facilities and water pipes in the villages.

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Political science professor Alexander Knyazev says it is important that the water-and-gas issue be resolved quickly.

"Presidents and the governments can agree easily. But they do not do it because now, water is not only a natural resource. Water is a political tool," said Knyazev, who teaches at the Kyrgyz-Russian Slavic University in Bishkek. "One day, water can become a big issue of conflict between Kyrgyzstan and Uzbekistan," Knyazev added.

Water specialists and experts have already discussed the water problem and power balance among Central Asian countries in a meeting in Tashkent last August. "It was a routine session of the interstate commission on the creation of a waterpower consortium that, at last, will solve the water problems of the region. However, results of these negotiations are not yet comforting, as there is not an acceptable project yet," Knyazev added.

At the moment, discussions in parliament continue and preparations for a special water commission to visit Tashkent and negotiate with the Uzbek government are being finalized.