Limited Liability Company
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1 Limited Liability Company «NAMO» 1. Introduction 6 1.1. Aim, scope and structure of the report 6 1.2. Water PEER in the context of the water sector and the PFM reforms 7 1.2.1. Context 7 1.2.2. Water 8 1.2.3. Public expenditure 9 1.3. Methodology and data issues 9 1.3.1. Data sources 10 1.3.2. PEER challenges and information gaps 10 ф 2. Public Finance Management in the water sector 12 2.1. Setting the stage 12 2.1.1. Macroeconomic and fiscal policy context, national planning and budgeting links 12 2.1.2. Water related expenditure 14 2.1.3. High level Public Expenditure overview 16 2.1.4. Budgetary processes, budget classification and budgeted information in Tajikistan 17 2.1.5. PFM in Tajikistan, progress and future directions on on-going reforms 25 2.1.6. Public Exenditures Reviews – relevant finding from World Bank studies 35 2.2. Developing MTEF for the water sector – analysis and recommendations 34 3. Public Expenditures in the Water Resource Management sub sector 40 3.1. Overview of subsector objectives, policies, programs and agencies 40 3.1.1. Institutional and policy framework for WRM 40 3.1.2. Legal and institutional basis for WRM in Tajikistan 41 3.1.3. WRM in Tajikistan – challenging transition 42 3.1.4. Water sector objectives 42 3.1.5. Organizations/Agencies involved in WRM and links to Budgeting 45 3.1.6. Policy implementation in WRM 47 3.1.7. Water sector policies and programs 53 3.1.8. Climate change – Impact on the water sector 54 3.1.9. WRM Sector performance 56 3.2. Principles of IWRM and Proposed Institutions at basins and sub-basins 58 3.2.1. River basin council (rbc) 59 3.2.2. River basin organization (rbo) 59 3.3. Public expenditures, budget allocation, execution and evaluation 62 3.4. Sub-sector findings and financial sustainability analysis 64 3.5. Conclusions and recommendations 65 TABLE OF CONTENTS Executive summary Public Finance Management in the water sector Public Expenditures in the Water Resource Management sub sector 4. Irrigation and drainage 68 4.1. Overview of sub sector objectives, policies, programs and agencies 68 4.1.1. Sector objectives 68 4.1.2. Sector policies and programs 69 4.1.3. Sector agencies 69 4.2. Sub sector performance 72 4.2.1. Overview 72 4.2.2. Impact of weak irrigation systems 73 4.2.3. Investment needs 74 4.2.4. Funding sources 75 4.3. Process of budget allocation, execution control and evaluation in the sub sector 77 4.4. Analysis of public expenditures in the sub sector 78 4.4.1. Ministry of Finance data 78 4.4.2. Overall funding according to ALRI 81 4.4.3. Tariffs and costs 83 4.4.4. User fees 85 4.4.5. Debts 87 4.4.6. Tax 88 4.4.7. Capital expenditure 88 4.4.8. ALRI expenditure 90 4.5. Sub sector findings and financial sustainability analysis 91 4.6. Conclusions and recommendations 91 5. Review of Public Expenditures in the Drinking Water Sub-sector 94 5.1. Overview of sub-sector objectives, policies, programs and agencies 94 5.2. Subsector performance 99 5.2.1. Access to Water 100 5.2.2. Operations 101 5.2.3. Quality of water 105 5.3. Process of budget allocation, execution control and evaluation in the sub sector 106 5.4. Analysis of public expenditures in the WSS sub-sector 107 5.4.1. Housing and Communal management, environment and forestry 107 5.4.2. Water supply and Sanitation (WSS) subsector 110 5.5. Sub-sector findings and financial sustainability 119 5.6. Conclusions and recommendations 120 TABLE OF CONTENTS Irrigation and drainage Review of Public Expenditures in the Drinking Water Sub-sector Conclusions Annex 1. Characteristics of the main glaciers of Tajikistan 130 Annex 2. Characteristics of the biggest rivers of Tajikistan 131 Annex 3. Rivers Streamflow data for the years 1960-1999 132 Annex 4. Characteristics of the main lakes of Tajikistan 133 Annex 5. Characteristics of the main water reservoirs 134 Annex 6. The use of water from water reservoirs (in mln. м3) 134 Annex 7. Predicted approved operational reserves of groundwater 134 Annex 8. The territorial distribution of groundwater reserves, thousand. м3/day 135 Annex 9. The list of enterprises subordinated to the Ministry of Energy and Water Resources System of the Republic of Tajikistan 135 Annex 9.1. The list of the State unitary enterprises operating in the oil and gas industry subordinated by the Ministry and funded partly from budget and partly from their commercial activity 135 Annex 9.2. the list of enterprises, land reclamation and irrigation Agency under the government of the republic of Tajikistan 136 Annex 9.3. List of Non-profit organizations in the system of ALRI 136 Annex 9.4. The list of non-profit and commercial organizations to Committee for Environmental Protection System of the Government of the Republic of Tajikistan 136 Annex 9.5. The list of units of the Main Geology Management System of the Government of the Republic of Tajikistan 137 Annex 9.6. List of joint stock companies, state enterprises, organizations and institutions, under the management of Open Joint Stock Holding Company "Barki Tojik" 137 Annex 10. List of counterparts met during conducting the WPEER 138 TABLE OF CONTENTS Annexes ACU Aid Coordination Unit ALRI Agency on Land Reclamation and Irrigation CoEP Committee on Environmental Protection CPI Consumer Price Index CSIP Centralised State Investment Programme (domestic capital expenditure) DCC Development Coordination Committee DFID Department for International Development (UK) DRS District of Republican Subordination EBRD European Bank for Reconstruction and Development ENRM Environmental and Natural Resources Management FMIS Financial Management Information System GBAO Gorno-Badakhshan Autonomous Oblast GFS Government Finance Statistics GWP Global Water Partnership ID Irrigation and Drainage IPSAS International Public Sector Accounting Standards JSC Joint Stock Company KBO Key Budgetary Organisation KMK Khojagii Manziliyu Kommunali KUSD Kilo USD (thousand USD) LSIS Living Standards Improvement Strategy MABA Main Administrator of Budget Allocation MEWR Ministry of Energy and Water Resources MEDT Ministry of Economic Development and Trade MTEF Medium Term Expenditure Framework NDS National Development Strategy NDS National Development Strategy PARS Public Administration Reform Strategy PEFA Public Expenditure and Financial Assessment PEER Public Environmental Expenditure Review PER Public Expenditure Review PFM Public Finance Management PFMRS Public Finance Management Reform Strategy PIP Public Investment Programme (externally financed capital expenditure) PPER Programmatic Public Expenditure Review PRS Poverty Reduction Strategy SDG Sustainable Development Goals SUE State Unitary Enterprise TPSFRS Tajikistan Public Sector Financial Reporting Standards TSA Treasury Single Account WRM Water Resources Management WSS Water Supply and Sanitation WUA Water User Association List of Acronyms 1 1 This report 1 provides findings from a Public Environmental Expenditure Review (PEER) of the water sector in Tajikistan. The review has focused on the two main aspects of water usage in the country – water supply and sanitation (WSS) and irrigation and drainage. PEER aimed to identify financing sources as well as the institutional structures through which funds are disbursed. In addition, the review looks at the wider context of public financial management and Water Resources Management (WRM) and the institutional framework for this. This is an opportune time for the PEER in Tajikistan for a number of reasons. The sector is embarking on a new reform programme, which was approved in 2015, which is going to bring about a fundamental change in the approach to water management with the introduction of IWRM. In addition, water features in the global Sustainable Development Goals (SDGs) and the country has just launched its second National Development Strategy. Social and economic conditions in Tajikistan (and Central Asia) are more closely related to water than in other locations. The country is situated (along with Kyrgyzstan) on the upper reaches of the major rivers Syr Darya and Amu Darya, rivers which are used downstream by Kazakhstan, Turkmenistan and Uzbekistan. Transboundary water resource management is significant for the geopolitics of the region. Tajikistan is water-rich and this has shaped economic development with extensive hydropower resources (with some exports and plans to significantly expand) as well as economic reliance on water intensive agricultural crops (wheat and cotton) and water/energy intensive aluminum smelting. Despite having access to extensive water resources, the country faces numerous challenges. Climate change poses a significant threat to the region and may reduce supplies in water Tajikistan with potential adverse impacts on supplies for farming, WSS and hydropower. Melting of the country’s glaciers as a result of global warming could lead to a catastrophic decline in water availability in many Central Asian rivers, affecting the water flow, with implications for water for agriculture and household consumption as well as energy production. The country has been through a number of reforms to improve public financial management (PFM). These include strategies to strengthen coordination in national planning and to link broader strategies more closely to financial practices to increase the efficiency of the management of public finances. Ongoing initiatives include the ten-year Public Administration Reform Strategy (PARS) and the Public Finance Management Reform Strategy. In January 2014, new budgetary classifications were introduced. A further Public Finance Management Modernization Project was approved in 2015 to continue reforms to 2021. In 2012 the Medium Term Expenditure Framework (MTEF) was introduced in six pilot sectors. There has been some (slow) improvement as a result of these reforms. There is a stronger budgetary process in terms of clarity and comprehensiveness of the preparation of budget submissions. Significant improvements have been noted in disclosure. PFM planning approaches have improved. Audits have been introduced and systems have become automated. However, a number of limitations have been reported. Budget transparency, while improved, is still low. Budgetary planning is heavily centralized. Coordination across different budget elements is weak. Sizeable amounts of funding are disbursed outside the formal budget. Weak staff capacity is exacerbated by low wages leading to high staff turnover. There is little but somewhat improving connection between policy based budgeting and expenditure and the achievement of tangible improvements in public service provision. 1 This report was prepared by the Dushanbe-based think-tank «Namo» ( www.namo.tj ). The team included Kate Bayliss, Matin Kholmatov, Rustam Aminjanov and Farrukh Sultanov. Substantial contributions were made by Anatoly Kholmatov and Takhmina Azizova (UNDP). The team expresses its special appreciation to all the Tajik ministries and agencies and development partners who has contributed to the Report. Executive summary 2 The institutional structure for Water Resources Management (WRM), has also been through a number of transitions since independence. In 2013 the MEWR was established to consolidate responsibility for water and energy in a single ministry. This is the agency with ultimate responsibility for WRM. The government agency responsible for irrigation and drainage in rural areas is ALRI and for drinking water, SUE KMK. In addition, a number of technical agencies operate in the sector including the Committee for Environmental Protection (CEP), the Department of Hydrology and the Anti-Monopoly Agency. ALRI and KMK both operate across the country with subdivisions at the local level but report directly to government rather than the MEWR. KMK has only recently taken over rural WSS. The chains of responsibility and of finance reach from the central government agencies through to regional to local levels. These government agencies also interact with central and local government authorities which are also involved in financing all of which highlights the complexity of sector governance and financing. In 2015 a major restructuring of the sector was approved to shift towards river basin based water management. The country is in the process of establishing local governance structures in each of four river basins across the country. These will be governed by River Basin Organisations (RBOs) that will coordinate plans for water consumption and monitor water distribution and quality and the long term protection of the water resources. The RBOs will also develop plans for infrastructure to protect against environmental degradation. Water users and stakeholders in the geographical area of the specific basin will be represented by River Basin Councils that will make representations to the RBOs. It is assumed that donors will fund, at least initially, operations of the RBOs yet mid to long-term financial sustainability and their role in public expenditures is yet to be clearly articulated. Agriculture is the largest consumer of water by far, accounting for over 90% of water use in Tajikistan. Some 25 years since independence, socio economic life in rural areas is still is heavily influenced by the structures created in the Soviet era. Farm privatization has led to the creation of over 85,000 dehqan small farms with over 80% of these located in Khatlon province. However mostly irrigation relies on large-scale systems built in the 1930-1980 period. These now need to be shared by hundreds of small scale farmers. The aging infrastructure is in urgent need of rehabilitation and replacement. Poor land irrigation and drainage is a major constraint to agricultural production and has reduced the area of agricultural production. Lack of drainage is leading to salinization and land degradation as the fields become water logged. Around one third of irrigated arable land is not used because of the deterioration of infrastructure. The future of agriculture, as one of the main sources of growth and employment in Tajikistan would heavily depend on more attention to irrigation and drainage, if Tajikistan is to fully capitalize on a growing global demand for food. ALRI is the government agency responsible for providing irrigation and drainage and there are local as well as central divisions across the country. ALRI is responsible for infrastructure up to the level of the dehqan farm. Thereafter the infrastructure is the responsibility of the farmers through Water User Associations (WUAs) made up of the farmers. In practice the WUA system has not yet been fully successful with only around one fifth of the country’s 258 WUAs across the country recognized as viable. This weak institutional structure at the farm level has created challenges, for example, with lack of clarity as to ownership of the infrastructure. Government spending for irrigation and drainage comes predominantly from the central republican budget with only a small proportion from local budgets. Funding has increased steadily since 2007 with 2014 showing a drop in state budget and an increase in the local budget. Capital expenditure for irrigation through the PIP has been fairly constant over the past ten years. While donor funding has increased through the PIP it is still only about 12% of sector expenditure. Irrigation and drainage accounts for less than 1% of the state budget. Although most farms are situated in Khatlon, this region accounts for only about 20% of the Republican budget spending on irrigation and drainage with DRS attracting the largest share of funding. Executive summary 3 ALRI also receives income from user fees paid by the WUAs and this makes up the majority of ALRI income, although this share has declined from a peak of 85% in 2008 to around 60% in 2015 which has been matched with an increase in republican budget funding. However, user fee collection rates are variable. The national average was around 69% in 2015 but this ranged from a peak of 98% in GBAO to 49% in Khatlon (Kulyab). Low collections rates would appear to indicate that there is scope for improved governance and enforcement of fee collection, increasing fee income but high debts have been accumulating with growing levels of unpaid water bills. Debts owed to ALRI by WUAs were written off in 2014 but are increasing again already. Meanwhile, the debts owed by ALRI are also growing. The main creditors of ALRI are OSJH Barki Tojik for supply of electricity, the State Budget for taxes, Social Protection Fund for 25% of salary taxes and staff personnel for salary. The majority of spending by ALRI is devoted to employment costs which accounts for over 70% of expenditure. The wage bill has increased and the number of employees has fallen substantially since 2009, pushing up the average annual wage from TJS 1,592 to TJS 3,536 (US$ 450) but still this is very low at little more than US$ 1/day. Despite extensive labour shedding which reduced the workforce by about one third, and low wages, still, employment costs account for the major part of expenditure. This suggests, first, that ALRI may face difficulties in retaining skilled staff and, second, that there are not sufficient funds to address the major financing needs of the sector. Download 0.75 Mb. Do'stlaringiz bilan baham: |
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