Kyrgyz Republic: Issyk-Kul Wastewater Management Project

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage

Issyk-Kul lake, the second-largest high-altitude lake in the world, is renowned for its clear waters; it is designated as a Ramsar site of globally significant biodiversity, and is a key asset of the Issyk-Kul Biosphere Reserve. The surrounding Issyk-Kul region is rich with environmental, archeological, and cultural resources, and supports internationally important biodiversity. As a consequence, the region is one of the nation's most popular tourist destinations, with tourism now an important source of revenue, especially for lakeshore cities. The impacts of tourism growth on the environment and ecosystems of the lake and shoreline areas are of growing concern, particularly in relation to wastewater pollution, and notably in the three primary lakeshore cities of Balykchy, Cholpon-Ata, and Karakol.

Core problem. Balykchy (population 47,000) is located at the western extremity of the lake; Karakol (population 76,000) is located at the lake's eastern extremity. Both cities have extended aeration-based wastewater treatment plants (WWTPs) that were constructed in the 1980s. However, only 30% of the population in Balykchy (3,400 households), and 45% of the population in Karakol (7,200 households) are currently connected to the centralized systems. The WWTPs are dilapidated and treat only about 8 million liters per day (MLD) of wastewater through sedimentation. The remaining 14 MLD of wastewater is disposed of through unsanitary pit latrines and other methods characterized by poor maintenance and lack of adequate septage collection and disposal. While most resorts maintain sewage treatment facilities, monitoring of treatment operations and effluent quality is inadequate. The combination of partially operating sewerage systems, self-provision of sanitation facilities, and inadequate monitoring of sewage discharge from resorts pose a significant threat to the lake's water quality, leading to increased public health risks and environmental degradation. These in turn limit tourism development, which relies heavily on the lake's environment.

Vodokanal enterprises in Balykchy and Karakol are responsible for WSS services. Their expenditures are high due to operational inefficiencies arising from the aging system, poor operational and management capacity and lack of maintenance equipment. Staff incentives are low, with no corporate motivation mechanisms. The vodokanals are unable to recover operating costs through their revenues and rely on budget support. To improve their cash flows, vodokanals need to develop corporate-oriented business plans and service standards, train and retain skilled staff in technical and financial management to improve the operational efficiency and provide better customer services, so that customers are willing to pay increased tariffs.

Sector policies and institutional arrangements. Government targets for WSS services focus on inclusive development to improve functionality, enhance service levels, and expand municipal sanitation. In terms of policy, this includes a targeted strategy for WSS development to 2026, and a national strategy to guide sustainable development to 2040. A comprehensive legislative and regulatory framework for environmental and natural resource protection has also been enacted with project responsibility recently transferred to the technically oriented Department of Drinking Water Supply and Sewerage Development (DDWSSD). The Asian Development Bank (ADB) has provided assistance through the Issyk-Kul Sustainable Development Project, which improved wastewater collection systems and provided institutional strengthening in both Balykchy and Karakol. Other development partners also provide WSS sector assistance.

Priority needs. Wastewater treatment in both cities is inadequate, and the dilapidated WWTPs urgently require upgrading to meet effluent discharge standards. This is widely recognized as essential for the proper functioning of the systems and their subsequent expansion. The management of septage from private sanitation facilities needs to be improved, and sludge discharged from the Karakol WWTP to a reservoir needs to be removed. Building on the original Issyk-Kul Sustainable Development Project (footnote 11) institutional development initiatives, the vodokanals require further strengthening to increase their financial management and operation and maintenance (O&M) capabilities, and to continue their adoption of modern, best practices in utility operations.

Proposed project. Complementing the Issyk-Kul Sustainable Development Project, the project will upgrade the WWTPs with new technology, further expand the networks, improve private facility septage management, and remove wastewater sludge from a reservoir in Karakol. It will further build the capacities of the two vodokanals through structural strengthening and targeted personnel training in utility corporate planning, O&M, and financial management. The project will support the following operational priority areas of Strategy 2030: (i) making cities more livable, (ii) enhancing environmental sustainability, and (iii) strengthening governance and institutional capacity. The project is consistent with ADB's Water Operational Plan 2011 2020, and ADB's country operations business plan, 2018 2020 for the Kyrgyz Republic. It also aligns with previous and ongoing ADB-funded sector projects and contributes to the attainment of Sustainable Development Goals.

Value added by ADB's assistance.

(i) Technology and innovation. ADB's intervention will introduce modern, efficient wastewater treatment technologies that assure stringent compliance with effluent discharge standards, while being cost efficient and within the operational capacity of vodokanals. The selected modern technology intermittently decanted extended aeration lagoon with trickling filter tertiary treatment has a high potential for replication in other cities throughout the nation.

(ii) Institutional development. The project will support further development of the vodokanals for modern utility management, including (a) formulating corporate business plans; (b) targeted training modules on corporate utility management, O&M, and utility financial management; (c) twinning with an international WSS knowledge-based facility; and (d) establishing a septage management unit in each vodokanal; and (e) providing O&M equipment.

(iii) Climate change. The project design incorporates climate adaptation solutions that will enhance the climate resilience of the cities. These include (a) separating drainage networks from wastewater networks, (b) introducing climate-resilient design standards and features, and (c) improving system sustainability through the selection of corrosion-resistant pipelines and the incorporation of WWTP technologies that better withstand climate-induced impacts.

Lessons. Lessons incorporated in the project from previous ADB-financed projects include (i) strengthening project management effectiveness through deeper engagement of the executing agency, implementing agency, and steering committee; (ii) minimizing the number of procurement packages to improve efficiency; (iii) strengthening project and vodokanal staff capacity and knowledge; (iv) instituting project staff performance reviews; and (v) facilitating advance action for land acquisition, resettlement, and detailed engineering design.

Balykchy and Karakol wastewater systems improved.

Vodokanal capacity strengthened.

Septage management services improved and sanitation and hygiene awareness increased.

There are five major civil works contract packages envisaged under this project: (i) Design and Build (DB) of Wastewater Treatment Plant in Balykchy (awarded), (ii) DB of Wastewater Treatment in Karakol ($10.8 million), (iii) Expansion of sewer network in Karakol ($1.56 million), (iv) Expansion of sewer network in Balykchy ($1.36 million); and (v) Construction of receiving tank (50m3) discharge pipeline (0,2km) and rehabilitation of the main

collector's manholes to WWTP) in Karakol ($0.2 million); (vi) Procurement of irrigation pumps ($0.3mln), (vii) Procurement of vacuum tankers ($0.42mln).