Policy Brief on Water sector financing in Kazakhstan

Mar 2023; CAREC Institute

An analysis of the water sector financing landscape in Kazakhstan has revealed institutional fragmentation in financing. Water service providers bear operating, maintenance, rehabilitation, and investment expenses partially covered by water tariffs and public funds (transfers, taxes), but a considerable financing gap remains. The Committee of Water Resources estimates that approximately 925 billion tenge is required to rehabilitate and reconstruct water infrastructure in Kazakhstan. Improvement of water sector financing in Kazakhstan requires a multifaceted approach, including improving government effectiveness and coordination in the allocation of available public funding in the water sector, conducting water infrastructure asset assessment and identifying the financing gap, revising unified water tariffs for irrigated agriculture, and strengthening enabling environment to attract private investments and innovative financing mechanisms, particularly climate-resilient water infrastructure.

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