Report No. 13990-KG Kyrgyz Republic National Environmental Action Plan May 2. 1995 Infrastructure, Energy and Environment Division Country Department III Europe and Central Asia Region Environment Division Technical Department Europe and Central Asia, Middle East and North Africa Region Document of die Woas= _____ 2= _-X:X Xn C:,e, , =_ - . - CURRENCY EQUIVALENTS Currency Units = Som MEASURES AND EQUIVALENTS I cubic meter (m2) 35.310 cubic feet I hectare (ha) = 2.470 acres I ton = 1,000 kilogrammes GLOSSARY OF ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank CIS Commonwealth of Independent States EBRD European Bank for Reconstruction and Development EIA Environmental Impact Assessment EU European Union FSU Former Soviet Union GDP Gross Domestic Product GEF Global Environment Facility Geprozem Institute of Land Use and Utilization GNP Gross National Product GOKR Government of the Kyrgyz Republic Goskomekonomika (SCE) State Committee on the Economy Goskomgeol (SCG) State Committee on Geology Goskominvest State Committee on Foreign Investments and Economic Assistance Goskompriroda (SCEP) State Committee on Environmental Protection Goskomstat State Committee on Statistics Hydromet State Hydrometeorological Agency IAEA International Atomic Energy Agency IDA International Development Association IFC Intenational Finance Corporation KJKS Kyrgyzjikommunsoyuz (Urban Municipal Services) KSRS Kyrgyzselremstryoy (Rural Municipal Services) Kygyszaltin State holding company for all mining and metallurgical enterprises Kyrgyzokhotrybolovsouz Kyrgyz Hunting and Fishing Union Leskhoz State Forestry Farm mkrR Microroentgen MOA Ministry of Agriculture MOE Ministry of Energy MOF Ministry of Finance MOH Ministry of Health MOI Ministry of Industry MOT Ministry of Trade M&M Mining and Metallurgy MOWE Ministry of Water Economy PDK Maximum allowable concentration TOE Millions of tons of oil equivalent NAS National Academy of Sciences NBK National Bank of Kyrgyzstan NEAP National Environmental Program Action Plan NMP Net Material Product Sanepid Sanitary-Epidemiological Service UNDP United Nations Development Programme USAID United States Agency for International Development Vodokanal Water Supply and Sanitation Utility FISCAL YEAR January I - December 31 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................... PART ONE NATIONAL ENVIRONMENTAL ACTION PLAN: PRIORITIES FOR ACTION 1995-97 1. WHY DOES THE KYZGYZ REPUBLIC NEED A NATIONAL ENVIRONMENTAL ACTION PLAN? .......................... 1 2. SETTING GOALS AND PRIORITIES ........................... 5 A. Key Environmental Problems ............................ 5 B. Priority Actions .......... .................. 7 C. Critical Constraints ............................. 8 3. MAJOR ENVIRONMENTAL CONCERNS: DEFINITION AND UNDERLYING CAUSES .................................. 9 A. Water .......................... 9 B. Land .......................................... 11 C. Environmental Concerns Related to the Mining and Metallurgy Industry . 14 D. Air ........................ .. 15 4. FRAMEWORK FOR ACTION ........................... 17 A. Addressing Priority Problems .......................... 17 B. The NEAP Process ........................... 26 PART TWO BACKGROUND PAPERS 1. SETTING ENVIRONMENTAL PRIORITIES USING HEALTH INFORMATION .37 A. Background ..37 B. Exposures to Toxics ..39 C. Information Management ..43 D. Capacity Building and Institutional Strengthening ...... ......... 44 2. WATER RESOURCE MANAGEMENT IN THE KYRGYZ REPUBLIC ..... 45 A. General Overview . ................................. 45 B. Occurence and Characteristics of Groundwater ..... ............ 51 C. Water Resources Development and Use ...... ............... 52 D. Domestic, Industrial, and Agricultural Water Use .... ........... 58 E. Threats to the Quality of Raw Water Supplies ................. 65 F. Drinking Water Quality ..... .............. ........... 68 G. Conclusions and Recommendations ....... ................. 69 3. NATURAL RESOURCES ....................... ......... 73 A. Agriculture .................. 73 B. Forestry .................. 79 C. Watershed Protection .................. 84 D. Biodiversity Conservation .................. 86 E. Tourism .................. 91 4. THE MINING AND METALLURGICAL SECTOR ................. 95 Hot-spot in the Mining and Metallurgical Sector .................... 98 5. THE INDUSTRIAL SECTOR .............. ................. 111 A. General Overview ................................... 112 B. Toxic Industrial Waste Disposal .......................... 113 6. THE ENERGY SECTOR ................................... 118 7. LEGISLATION, STANDARDS AND ENFORCEMENT .............. 126 ACKNOWLEDGEMENTS This report is the result of a cooperative effort between the Government of the Kyrgyz Republic and the World Bank. The idea of preparing a National Environmental Action Plan (NEAP) was discussed and agreed with the government agencies responsible for enviromnental protection in March 1994. The report is expected to help the Government in developing its environmental policies and the donor agencies in targeting assistance and avoiding duplication of effort. The preparation of the National Environmental Action Plan on the Kyrgyz Republic side was overseen by a high level Steering Committee, coordinated by Mr. I. S. Muratalin, Chairman of the State Committee on Environmental Protection. Members of the Committee included the Minister of Agriculture Mr. Z. A. Asanov, the Minister of Water Economy Mr. M. Z. Zulpuev, the Minister of Health Mr. N. K. Kassiev, the Chairman of the State Committee on the Economy Mr. A. M. Muraliev, the Chairman of the State Committee on Statistics Z. A. Akeneev, the Chairman of the State Committee on Geology Mr. Sh. T. Tekenov, the President of the National Academy of Science Mr. T. K. Koitchuev, the Director of the State Agency for Technical Control in Mining Mr. A. M. Masaliev, the Director of the State Hydrometeorology Agency Mr. 0. N. Tokoev and the chief of the Department of Science and International Cooperation in the State Committee on Environmental Protection Mr. M. S. Sulaimanov. The Deputy Chairmen of the State Committee on Environmental Protection, Mr. T. A. Kulumbaev and Mr. T. S. Musuraliev provided valuable assistance in the preparation of the report. The Kyrgyz Government formed an expert Working Group to prepare the NEAP with representatives from government agencies and non-governmental organizations (NGOs), coordinated by Mr. K. D. Bozov, Chief Ecologist of the Kyrgyz Republic, and Mr. E. D. Shukurov, Director of the Institute of Biology at the National Academy of Science and Chairman of "Aleine" (an environmental NGO). The Working Group included L. M. Kiashkina, T. G. Korneeva, L. A. Epstein, T. Klimakova, S. T. Malishev, A. A. Ishmuhamedov, A. Sidikov, N. G. Mudratchenko, A. M. Isaev, G. Osmonalieva, F. S. Kovaltchuk, V. D. Zamoshnikov, N. I. Kabanova, E. A. Suerkulov, V. M. Shaposhnikova, A. A. Imanaliev, C. 0. Sadabaeva, M. C. Sulaimanov, S. A. Mambetzhanova, K. M. Noruzbaev, I. K. Kenzghetaev, I. A. Dairov and E. A. Omurbekov. The Kyrgyz experts wrote basic reports on current environmental issues and participated in series of discussions with the World Bank NEAP team. The Bank's National Environmental Action Plan team was led by K. Georgieva, Environmental Economist, and included R. Batstone, Principal Environmnental Engineer, R. Ackermann, Principal Environmental Policy Analyst, T. Garvey, Senior Water Quality Specialist, and E. Ibraimova, J. Moore, L. Talbot, H. Mishra, K. Shankar, N. Bech, K. de Wijs and D. Everett (Consultants). V. Tsirkunov, K. Lvovsky and D. Onoprishvili contributed to the preparation of sections of the report. J. Djaky, with support from E. Marinova and J. Kouame, was responsible for the production of the report. Two NEAP preparation missions to the Kyrgyz Republic were carried out in June 29-July 15, 1994 and October 25- November 10, 1994, to support the Kyrgyz Government in finalizing the NEAP and setting environmental priorities for the Kyrgyz Republic. Peer reviewers were A. Bond and M. Kosmo. The World Bank Resident Representative Mr. Michael Rathnam and Mr. Valeri Tian, Project Officer in the Resident Mission, provided valuable contribution to the NEAP process and to the report. Work on the NEAP utilized a document on the status of the environment prepared by the Government of the Kyrgyz Republic for the UNCED meeting in 1992. It also drew upon World Bank sectoral studies for the Kyrgyz Republic (on agriculture, mining and energy), as well as reports on health and poverty assessment. We wish to thank the authors of these reports for allowing us to use some of their findings. The Kyrgyz Republic: an Overview Background. The Kyrgyz Republic is a landlocked Central Asian counry with a population of 4.3 million (1994). It is among the smallest and poorest of the republics of the Former Soviet Union (FSU), covering 198,000 Km2 or less than I percent of the FSU, with a per capita income in 1993 of US$830. The Republic is divided into 6 states or oblasts, arid a capital district, Bishkek. Although the country is a democratic republic and relies on the former Soviet administrative structure, the indigenous tribal social and political structure is still strong. Demography. The Kyrgyz make up 52 percent of Kyrgyzstan's population. Tle other major ethnic groups include Russians, Uzbeks, Ukrainians, Germans, Tatars, Dungan, Kazaths, Uighur and Tajiks. Since independence, many of the Russians, Germans and Ukrainians have migrated to other republics, creating managerial and technical voids in institutions throughout the country. Prior to 1990. the country had one of the lowest rates of emigration in the Soviet Union. Approximately 64 percent of the population lives in rural areas -around Lake Issyk-Kul, the Pergana Valley, the Naryn Valley, and the lower slopes of the Tien Shan and Pamir Mountains. The remaining 36 percent live in urban areas, particularly Bishkek and Osh. Topography. Kyrgyzstan is dominated by the Tien Shan mountain range, which divides the country into 2 zones, the northern region including the Talas, Chui, Issyk-Kyul and Bishkek, and the Fergana Valley catchment in the south. The country is very mountainous, with 94 percent of the territory over 1,000 m above sea level, of which 40 percent is above 3,000 m as], with large glaciers and snowfields (Map 1, IBRD #26876). Pobeda, the highest peak, is 7,439 m. The region is seisrically very active, with frequent earthquakes and landslides. Climate. The climate is continental: cold winters and hot summers, with high local variations depending on altitude. In July, average temperatures in the lower areas range from 17°C to 270C (high temperatures can exceed 40°C), while temperatures may reach only I0°C at 3,000m. In the winter, frost occurs in all regions. Precipitation is the highest in the mountains, mostly as snow, with a maximum of 1,000mmn on the slopes of the Fergana Valley. Precipitation in the Talas region varies from 250mm to 500mm. Issyk-Kul receives from 200mm in the west, up to 600mm in the east. Rain and snow mostly occur in the fall, winter and spring, with snowfall possible until May. Summers are generally dry. Map 2 (IBRD #26620) illustrates the water resources of the country, including annual rainfall, major rivers, lakes and snowfields. Potential annual evaporation varies between 200mnm in high altitudes (above 3,500m) and 1600mm in low areas (below 500m). Evaporation in key irrigated areas can vary between 1,200mm and 1,600mm, far exceeding the average precipitation (400mm). Vegetation. Vegetation is classified vertically into three belts. Pastures and steppes dominate regions below 1,500m; this area is used for agriculture although parts of this lower belt are considered as semi-arid. In the southwest where there is more precipitation, there are relic fruit and nut forests. The second belt, between 1,500m and 3,000m, contains grasslands and broadleaf and conifer forest up to the treeline (3,000m). The highest belt (above 3,000m) contains alpine grassland and sub-alpine meadows, with a high variety of flowers, intercalated with pernmaent snowfields, glaciers and rocks. OnlY about 7 percent of the land is desert, steppe, or arable river valleys, thus readily manageable for human use. Fauna. Wildlife in Kyrgyzstan consists of some 80 species of mammals, including valuable game species such as the Marco Polo sheep and the Siberian wild mountain goat. Endangered snow leopards also inhabit the mountains, as well as different species of bear, wolf, lynx, fox, deer, marten, weasel and marmots. About 368 bird species can be encountered, the majority of which are migratory species, and there are approximately 30 reptiles and 65 fish, including three types of tout. National Environmental Action Plan: i Executive Summary EXECUTIVE SUMMARY BACKGROUND 1. The Kyrgyz Republic is a small, mountainous Central Asian country with a population of 4.3 million people. Independent from the former Soviet Union (FSU) since 1991, the country is reshaping itself socially, politically and economically, moving from the former Soviet socialist system to democracy and a market economy. Consequently, environmental policy reform is being carried out within the context of profound economic and structural change. 2. The majority of the people live in rural areas (more than 64 percent). They are mainly farmers (although only seven percent of the land is arable) and shepherds who seasonally graze their livestock over much of the mountainous countryside. Primary agricultural production accounts for about 40 percent of GDP; industry, including mining, comprises about 30 percent. The Kyrgyz economy has been very seriously affected by the loss of fiscal transfers from Moscow (accounting for about 11 percent of GDP before independence) and by the loss the assured markets of the FSU. One result has been severe economic recession --since 1990, real output has declined by 45 percent in agriculture and by more than 60 percent in industry. With $830 per capita income in 1993, the Kyrgyz Republic is among the poorest republics of the FSU. 3. Many environmental problems have temporarily abated as a result of the economic downturn. Once the economy recovers, these improvements may not be sustained unless they are complemented by appropriate policy changes, encouraging resource conservation and better environmental performance. Generally, pollution emissions and agricultural chemical contamination decreased as a result of production decreases or cutbacks in the uses of polluting inputs. Other problems have intensified, due to changing household and industrial economies. For example, although the economic downtown has resulted in a reduction of industrial pollution, deforestation and soil erosion may have increased. Overall, pollution monitoring and regulatory enforcement have been halted because of lack of funds to support staff travel and equipment. 4. Country development objectives and policies. Since independence, the Kyrgyz Republic has shown a strong political commitment to move toward a market economy. The Government has been focussing its efforts on eliminating the distortions of the command economy, and reducing the role of the state. A complex stabilization and structural transformation program is being implemented, with assistance from the IMF, the World Bank and other bilateral and multilateral donors. In May, 1993, the Government introduced its own currency, the som, and, despite external and internal economic difficulties, has considerably advanced the implementation of the reform program. * In the short and medium term, macroeconomic stabilization efforts have been focussing on tight monetary policy, fiscal revenue enhancement, and imposing financial discipline on the enterprise sector. Prices, interest rates, external trade and the foreign exchange regime have been liberalized, inflation has been curbed, and the currency strengthened. * Structural reforms underway include privatization, already almost completed for small- scale service and retail operations; enterprise reform, including restructuring medium and large scale enterprises and removing subsidies; and private sector development, with legislation to expand private ownership, clarify property rights, and encourage competition. Sectoral reform is currently focussed on the agriculture sector. National Environmental Action Plan: ii Executive Summary * Social stability. Increasing poverty is a major concern--about 50 percent of the population is already below the nominal poverty line, and with rising energy and food prices, may become further impoverished. Republic, oblast and rayon governments will be assuming responsibility for primary social services (including water supply and sanitation) from the monolithic sector enterprises, which will further burden constrained government budgets. 5. The country's development strategies in agriculture, energy and mining depend on improved management of the nation's natural resources. These sectors carry considerable environmental liabilities from past management practices, however, and the potential for environmental problems in the future is high if they are not managed well. Therefore, environmental management and natural resource conservation are becoming increasingly important to the country's economic development. Environmental policy changes must support and be supported by the country's broader policy objectives of social and macroeconomic stability, and economic growth. 6. Many of the policy steps from the Government reform program (macroeconomic stabilization, price liberalization, privatization, imposition of hard budget constraints) are expected to contribute to environmental improvements. For example, increased prices of natural resources should encourage resource conservation and reduce the level of air and water pollution, and waste generation. Conversely, there is evidence that privatization of some industrial activities is resulting in a decline in environmental controls, at least for the short term, as existing state oversight is removed, and enforcement capabilities weaken. 7. Exactly how sectors, enterprises and individuals will react to liberalization may not always be possible to predict. For example, strict and fully enforced regulations should encourage both state-owned enterprises and the newly emerging private sector to comply with standards and to maintain the existing environmental infrastructure. Rational fees and tariffs for resources, which have been proposed by the government, can help encourage more efficient resource use; and more clearly defined property rights structures should encourage investments in resources for long-term returns. 8. Preparing the National Environmental Action Plan (NEAP) has been and will continue to be a complex process, which includes: (i) identifying the most critical environmental issues that affect the economy and the social welfare of a country, and proposing a set of priority actions in a NEAP report; (ii) endorsement of the Action Plan by the Government and the public; (iii) mobilizing external assistance to implement the NEAP; and (iv) periodic update to reflect changing environmental conditions, priorities and implementing capacity. 9. The Government of the Kyrgyz Republic, assisted by the World Bank, initiated the preparation of the NEAP in March, 1994. A high level Steering Committee was established to guide the activity, under the leadership of the State Committee on Environmental Protection (Goskompriroda). An expert Working Group with representatives from government agencies, academia, and environmental non- government organizations (NGOs) was formed to develop the plan. This group worked in close collaboration with a World Bank environmental team. 10. Public participaticn is essential for the NEAP process. The Kyrgyz NEAP involves NGOs and the general public in three types of activities: (i) expert contributions to the drafting of the NEAP report; (ii) local discussions on environmental priorities; and (iii) broad public information on the objectives and expected outcomes from the NEAP. A Public Participation Program has been developed, financed by the Fund for Innovative Approaches in Human and Social Development (FIAHS), and launched in National Environmental Action Plan: iii Executive Summary October 1994 by a Bishkek-based environmental NGO ("Aleine"). The program will provide a vehicle for consultations with the oblast administrations and local NGOs during the final stage of NEAP preparation and during the NEAP implementation. Ii. The first phase of the NEAP, recorded in this report, focusses on critical environmental issues that threaten public health, economic and ecological stability and biodiversity, and on the options available to resolve these problems. Five main criteria were applied to this process: (i) threat to human health and welfare; (ii) significance for economic recovery; (iii) efficient utilization and maintenance of existing fixed capital, particularly environmental infrastructure; (iv) environmental policy and institutional changes allowing for the adjustment to structural transition and a market economy; and (v) full use and development of human resource capabilities. 12. The Republic cannot address all issues at once. NEAP findings affirm that environmental protection and economic development are inextricably intertwined in the Republic Knowledge and public priorities determine what actions should be taken; as both of these change over time, the NEAP will be periodically updated. The long-term social and economic development goals of the Republic should guide the setting of priorities for action. These long-term goals currently focus on increasing the productivity of renewable and non-renewable natural resources, as well as on ensuring good public health. Therefore, the key areas of concern which unite the problems identified by the NEAP team are the unsustainable use of natural resources and the impact of pollution on public health. 13. In this report, the findings of the NEAP Working Group are presented in two parts. Part One of the report explains the rationale for a National Environmental Action Plan, sets goals and priorities, and prescribes specific steps that can be taken over the next three years. Part Two contains the background papers on health, water resources, natural resources, mining, industry and energy on which these conclusions are based. KEY ENVIRONMENTAL PROBLEMS AND ACTION PRIORITIES Unsustainable use of natural resources 14. Kyrgyzstan's economic performance and social welfare are critically dependent on its natural capital. The NEAP identified five major areas of concern: * inefficient water resource management; * land degradation, mainly due to overgrazing; * overexploitation of fragile forest resources; * threat of irreversible loss of biodiversity; and * inefficient mining and refining practices. 15. Ineffective water resource management. The Republic's water resources, which are critical for all five Central Asian Countries, suffer from inefficient distribution, and are not adequately protected from chemical and biological contaminants. Elements of the problem include inappropriately designed and aging infrastructure, lack of funds for operations and maintenance, a tariff structure which captures National Environmental Action Plan: iv Executive Summary only part of the operating costs, and insufficient regulation and enforcement of waste emissions near water sources. 16. To improve the management of water resources and efficiency of water use, small targeted programs should be developed for repairing and upgrading the physical infrastructure. Expenditures should be directed toward rectifying the highest priority problems of water supply contamination, supporting the distribution of low-cost sanitation technologies, and rehabilitating and repairing irrigation networks through modest investments at the local level. Projects should be based on a least-cost approach with respect to investment, operation and maintenance, and implemented quickly with existing technology and locally-available materials. 17. Low productivity of the land. Rural poverty is both a direct outcome and a cause of increasing land degradation. Land degradation in the form of soil erosion, soil compaction, and deforestation is reducing the productivity of virtually all croplands, pastures, and forests -- resources on which at least 30 percent of the nation's economy is based. Natural regulation of waterflows is hindered, reservoirs and irrigation networks are vulnerable to silting-in, and land slides and mudflows are destroying communities and productive lands. Extensive overgrazing by livestock (particularly sheep and goats), inappropriate farming practices, and poorly designed and maintained irrigation systems are the primary causes of degradation. 18. Farmer training in specific conservation techniques such as contour ploughing, reduced tillage, integrated crop management, and intensive grazing techniques may rectify some of the worst practices, and increase farm income. A rural credit program would also facilitate short-term investment in agricultural inputs. Although authority structures are changing, and land management responsibility is returning to local communities, resource rights are still unclear. There will be few incentives for investment in the land's long-term productivity and further degradation may result if tenure rights remain uncertain. 19. Fragileforests. The condition of the forest resources in the Republic is the result of past forest and rangeland management practices. Since the beginning of the 40s almost half of the forestry cover has been lost, mostly during the Second World War. Now forests cover only 4 percent of the country's territory. Unofficial harvesting of wood is wreaking an unknown amount of damage on the already fragile forest resources. Illegal exploitation of wood for fuel and construction by rural communities is viewed as a necessary response to sky-rocketing prices and the cessation of fuel and income subsidies. The extensive grazing practices of herders dramatically reduces natural regeneration, and compounds forest management problems. 20. An integrated program for joint production and conservation activities in forests and grasslands must be developed, and forest policy should be revised to harmonize forest and grassland production objectives. Local communities (particularly the forest farms) should be able to capture the value of alternative activities, ecotourism, on the land. In particular, short-term credit needs to be available to develop collection, processing and marketing of non-wood forest products such as fruits and nuts. 21. Threatened biodiversity. The Kyrgyz Republic has an outstanding natural heritage, of great beauty and diversity. The erosion of genetic diversity throughout the country is evident and profound, however. Biological impoverishment affects regional water regimes, quality of life, and economic options. It also is a significant global resource lost. 22. Future development depends on reversing the current decline in biodiversity--through better management and protection of watersheds and expansion of non-extractive activities such as ecotourism National Environmental Action Plan: v Executive Summary and other biodiversity-conserving enterprises. A National Biodiversity Conservation strategy should be developed. It should encourage management of human activities to reduce habitat encroachment, and support economic activities which rely on biologically diverse resources. In addition, the protected area system should be reviewed and strengthened, with the active participation of the communities residing within it. 23. Wasteful mining and refining industries. A significant percentage of the Kyrgyz economy depends on the sound management of its nonrenewable mineral resources. Inefficient mine operations and processing plants have created dumps rich in materials, but badly maintained. Heavy metals and other toxins are now leaching into the environment. The economic costs of these practices are measured in terms of lost revenues from wasted resources, and potential health damages from exposure to toxins. Unfortunately, many of the minerals the Republic has relied on in the past, such as mercury and uranium, are facing very weak markets now and in the future, and it is unlikely the industry will be able to fund clean-up from its own revenues. 24. More information on mining wastes needs to be gathered through a specific data-sharing and monitoring program jointly established by the three key agencies, Sanepid, Hydromet and Goskompriroda. Documented health damages from water contamination and assessed risk of major environmental disaster should be main criteria by which mitigation measures for dealing with mine wastes are chosen. Environmental staff should be trained in environmental impact assessment to carry out a systematic assessment of mining waste dump and dam safety, and environmental surveillance of mining industries must be restored. The impact of pollution on human health 25. Under the current budgetary constraints the Kyrgyz Republic can afford to address only those pollution problems which have direct impact on public health. These areas are: * protection and decontamination of drinking water, and assistance for improved sanitation and personal hygiene; * reducing dust emissions from district heating and power plants; and * assessing the extent of soil and water contamination with uranium, mercury and other heavy metals, and agrochenuical wastes. 26. Contamination of public water supplies lie behind the most serious threats to public health in the Republic -- human exposure to water-borne diseases and toxic levels of heavy metals and radioactive wastes. Water-borne diseases may be reduced by repairing the existing water supply systems, installing low-cost but effective latrines, and enforcing land-use controls around surface water sources. Distributing simple teaching materials on personal hygiene, and supporting a low-cost rural sanitation program for latrine construction are also essential. 27. Exposure to airpollution in the largest cities is blamed for higher levels of respiratory diseases and morbidity in vulnerable urban populations, although air pollution is generally not a significant problem in the Republic. Particulates and other pollutants can be dramatically reduced by properly maintaining and operating existing equipment. For example, repairing and using existing dust filters (electro-static precipitators) in the major central heating and power plants in Bishkek and Osh, and regularly maintaining the existing bus fleets would dramatically reduce particulate levels in those areas. National Environmental Action Plan: vi Executive Summary 28. The extent of health risk from exposure to heavy metals and radioactive elements which have been mobilized from mines, tailings deposits, dumps, and processing plants is a great unknown -- existing data are inconsistent and incomplete. More information must be gathered quickly before clean-up priorities can be assigned. The clean-up costs may be very high, and tbr this reason it is important that decisions to act are based on solid information about the relative hazards at each site. The wide-spread environmental and human health costs may could be incalculable, however, if clean-up at certain sites does not occur. CONSTRAINTS TO BETTER ENVIRONMENTAL MANAGEMENT 29. Policy constraints. Moving from problems to solutions will not be easy. The Kyrgyz Republic inherited its basic institutional and policy framework for environmental management from the FSU. In particular, resources were centrally allocated, physical performance targets were pre-eminent in importance, and the administered price system and soft budget policy placed little value on natural resources. Although the Republic has taken steps to adjust this structure, the main components of the previous institutional and management system remain intact at both the local and national levels. This hinders the progress of structural change. Economic reform can facilitate environmental management. For example, the removal of energy subsidies would encourage energy efficiency, and the progress of privatization would bring managerial improvements, improve resource utilization and encourage technological changes. However, managerial resistance to reforms and lack of experience slow the process of changes and constrain the potential environmental benefits of the economic reform. 30. Institutional and human constraints. The positive effects of economic restructuring will be sustained and deepened only if they are accompanied by the development of an integrated, decentralized environmental management system. An integrated system means air, water and soil pollution problems must be considered simultaneously during the setting of environmental priorities. Decentralization means that successful environmental management will require strengthening of the environmental authorities at all levels. Both of these require general public access to comprehensive, accurate and timely information about ecological, economic and human health parameters. Both require resources at all levels to facilitate monitoring, data analysis and communication, and to provide training. Retraining will assist environmental staff in their efforts to modernize procedures and develop problem analysis and project management skills appropriate to a free market economy. PRIORITY ACTIONS 31. Acknowledging these constraints, three types of environmental actions are identified as priorities in the short term: (i) a limited amount of expenditure for the rehabilitation, operation and maintenance of rapidly deteriorating and costly to restore institutional and physical infrastructure (in particular, water and sanitation infrastructure) and small investments targeted to rural natural resource-based enterprise development; (ii) a significant effort to collect well-defined information needed to make sound judgments in the future regarding priorities for environmental action, and to ensure that the most urgent issues are tackled first; and (iii) enhancement of the environmental regulatory framework, including training and support for staff in the environmental institutions. 32. As more and better information on the precise nature and urgency of environmental problems become available, the recommendations of the NEAP will be revised and refined. The tools available to the Kyrgyz Government to integrate environmental considerations into the overall economic and social development priorities will remain the same. They include: (i) changes in policies and regulations, (ii) improvements in the institutional framework for environmental management; and (iii) expenditures on projects with environmental benefits. National Environmental Action Plan: vii Executive Summary 33. There is a need to revisit environmental laws and regulations inherited from the FSU, in order to develop a coherent legislative system which corresponds to the requirements of economic transition and to the implementation capacity of the environmental authorities. Within this revision, issues of environmental liability must be addressed. Although the concept of liability is included in the existing environmental statutes, it does not define responsibility for past pollution, which is necessary for the on- going privatization process. 34. To support more efficient environmental institutions and effective environmental policy, several activities have been identified as high priority. Training environmental staff of government and quasi-governmental organizations is emphasized, particularly in international standards for environmental impact assessments (ElAs). This will promote harmonization with international environmental standards, and help ensure that new economic activities will meet all necessary environmental requirements. On-the- job training combined with international exchanges, are recommended with an immediate focus on the evaluation of the new gold mines, and a systematic assessment of mining waste dump and dam safety. 35. Environmental personnel should also be trained and funded to carry out efficiency and environment audits in selected municipalities, industries and mining industries. This activity will create local capacity to identify low-cost efficiency improvements in the polluting enterprises and form a basis through which the public can be educated and environmental standards can be monitored and enforced. 36. Enforcement. Assuring enforcement of standards and regulations is a key objective of the NEAP, which requires (i) properly set standards, to protect public health and productivity, and (ii) an effective monitoring system. Kyrgyzstan has a system of pollution charges, user fees and fines, for both water and air, which was developed under the Soviet Union. Charges are well below the level needed--fines (when they are collected) are a small fraction of the damage or abatement costs, and user fees usually do not cover even routine maintenance costs. Like most other countries, Kyrgyzstan needs to find a balanced approach between market and regulatory instruments. To be successful in environmental reform, however, central and local administrators must first be committed to enforcing regulations, and funding routine maintenance and operation of their environmental infrastructure from user fees. NEXT STPS 37. The NEAP is an on-going process. Next steps include: (i) public review and Government endorsement of the NEAP; (ii) NEAP presentaton to the donor community; and (iii) implementation of high priority policy, institutional and investment actions. The high level Steering Committee is expected to further guide the implementation of the NEAP. 38. A small NEAP office will expedite the agreed upon framework for action. This office will facilitate collaboration among the many institutions within and outside the Government which must be involved in the environmental policy reform process, provide status reports on the implementation of projects, maintain an environmental library and information center, and update commnunications on the changing inventory of key enviromnental concerns. 39. To initiate the NEAP, Goskompriroda will focus on a limited number of high priority actions during 1995. These will include: * Defining environmental liability for past pollution to complement the on-going privatization process, and establishing legal guidelines for settling liability conflicts; National Environmental Action Plan: viii Executive Summary * Developing the capacity to carry out Environmental Impact Assessment (EIA) according to intemational standards, including training technical staff in international procedures, and establishing compatible national guidelines; * Establishing the capacity to perform efficiency and environmental audits in selected pilot enterprises--in particular the Kara-Balta mine--to identify options for an economically viable mine waste re-utilization and cleanup; * Reviewing (with international assistance) the existing legal and regulatoryframework for the protection of environmental resources, including the appropriateness and enforceability of existing standards, permit systems, fees, and fines; * Reviewing the international environmental conventions signed and ratified by the FSU, as well as new international initiatives which affect the Kyrgyz Republic; initiating a program for government ratification of the appropriate conventions and legal or regulatory reform required to be in compliance with the agreements; and * Developing a National Biodiversity Strategy which integrates ecosystem preservation with local land-based economic activities. 40. In addition to the above actions, work should be initiated by the relevant authorities and Ministries to address the most urgent needs of the water supply and sanitation sector. In particular, short- and long-term technical assistance needs should be assessed within the next year, focussing on the rehabilitation, repair and replacement of facilities with the highest immediate health and economic impact, modernizing municipal and irrigation water distribution systems, and retaining and training local technicians. In the mining and metallurgical sector, interventions should focus on collecting the data needed to make hazard assessments and determine least cost remedial actions in the most critical areas. Environmental monitoring programs and regulatory enforcement must be reinstituted before far greater economic costs are incurred. PART ONE National Environment Action Plan: I Priorities for Action 1995-97 1. WHY DOES THE KYRGYZ REPUBLIC NEED A NATIONAL ENVIRONMENTAL ACTION PLAN? The Opportunities and Constraints of Economic Transformation .1 The Kyrgyz Republic declared independence from the former Soviet Union (FSU) in August 1991, and joined the Commonwealth of Independent States (CIS) in December 1991. A new constitution was enacted on May 5, 1993, and the country introduced its own currency, the som, leaving the ruble zone. The Republic is determined to move toward a market economy, reaffirmed by the Kyrgyz people in a referendum held in 1994. 1.2 With an income of $830 per capita, the Kyrgyz Republic is one of the poorest in the FSU. Economic development relies on natural capital in agriculture, mining (gold mining in particular) and hydropower production. Rich in water resources, the Kyrgyz Republic plays a key role for the water balance in the Aral Sea basin. Reliance on natural resources for return to growth and income generation makes proper environmental management and natural resources conservation increasingly important to the country's economic development. Environmental policy, therefore, must support and be supported by the country's broader policy objectives of social and macroeconomic stability and economic growth. 1.3 The Kyrgyz Republic is one of the least industrialized countries of the Former Soviet Union. Industry, including mining, makes up about 30 percent of the GDP. Primary agricultural production comprises about 40 percent of the GDP, although only seven percent of the land in the Republic is arable. The remaining 30 percent of the GDP is comprised of primarily state service sectors such as state administration, health care, and scientific and educational institutions. During the Soviet period state social services (such as education and health care), now in decline, were relatively well-developed, while the commercial service sector was almost non-existent. 1.4 The Republic has an industrial base designed as part of a Union-wide plan for industrialization emphasizing FSU interdependence. Imposed by the central authorities of the FSU, the country's industrial structure did not correspond well to the resource potential of the Republic. As a consequence, many enterprises are entirely dependant on imported raw materials and FSU markets for their products. With a relatively small internal market, the Kyrgyz Republic is particularly vulnerable to breakdowns in inter-republic trade. Its geographical location handicaps interaction with more distant markets. In addition, industrial development under the FSU was focused on defense-related resources such as uranium and rare earths. These markets are very weak now world-wide, and the sector must be restructured if it is to survive. 1.5 Physical infrastructure, such as electricity and roads, is relatively well-developed. Electrical power reaches virtually every mountain village. The quality of many roads is worsening, however, making transport of heavy loads difficult. Rail transport within the country and to neighboring republics is very limited. Although there are a number of airports, none meets international standards at this time. These limitations in physical infrastructure make inter-republican trade very costly. 1.6 Under the FSU, the Kyrgyz Republic received highly subsidized fuel supplies. The country has considerable hydroelectric potential and exports electric power to neighboring republics; and it has sizeable resources of good quality lignite--estimated at over 50 percent of Central Asia's proven reserves. Nevertheless, the Kyrgyz economy is dependent on imported gas and oil for energy. The Republic now pays world prices for petroleum imports from Russia and Kazakhstan. In addition, Kyrgyzstan is forced to pay 60 to 80 percent of the European market price for natural gas, although the gas comes from Uzbekistan and transportation costs between the two republics are minimal. The swift rise in imported National Environment Action Plan: 2 Priorities for Action 1995-97 energy prices toward world market levels has led to large terms of trade losses for the Kyrgyz economy, especially since it has not been able to obtain favorable terms for its electricity exports. Total industrial output declined by 65 percent during the past three years, particularly in mineral beneficiation, which is a high energy consumer, and in the machinery, electro-technical and electronics subsectors. The decline in the agricultural sector has been less severe, falling by 45 percent. 1.7 The Kyrgyz Republic is strongly affected by developments in the CIS, particularly Russia. As an integral part of the USSR, the country was subject to directions from the "center" on production, investment, trade, and virtually all other aspects of economic activity. Official transfers from the USSR budget accounted for 10 to 15 percent of budget expenditures during 1989-1991. Large implicit subsidies from other republics also existed in the form of subsidized industrial and agricultural inputs and guaranteed markets. 1.8 Many environmental problems appear Figure 1.1: Air Pollution from Point Sources and to have improved as a result of the economic Industrial Production in 1987 downturn. Generally, pollution emissions and Constant Rubles (x Million) agricultural chemical contamination have (1980 -1983) declined as a result of production declines or cutbacks in the application of polluting inputs. Figure 1.1 relates declines in pollution 20 7000 emissions with the changes in industrial 6000 production. Other problems may have E intensified, however, due to changes in P 150- *2 household and industrial consumption or * 100 ~~~~~~~~~~~~3000 patterns. For example, deforestation may be - . increasing as rural households are turning IL a - * x increasingly to wood for fuel. Pollution * mnonitoring and regulatory enforcement have 190 7 1990 M 1992 i9m virtually ceased because of the lack of funds mAir pollution from point sources to support staff travel and equipment, or the ---Industrial Production lack of will to close facilities on which hundreds or thousands of people depend either directly or indirectly for their livelihood. 1.9 Social and economic concerns. Although income levels are low, the population is well-educated and in the past enjoyed social support in the form of education, health services, and guaranteed income and pensions. Unfortunately, provision of social services, previously secured by the central government and the enterprises, is severely limited by restricted budgetary policy and collapse of the state sector. Future levels of these services are uncertain. Increasing poverty is a major concern -- about 50 percent of the population is already below the nominal poverty line, and with rising energy and food prices may become further impoverished. Republic, oblast and rayon governments will be assuming responsibility for primary social services from the monolithic sector enterprises -- further burdening constrained local budgets. Among those responsibilities will be maintenance of public infrastructure and municipal services (e.g., safe water supply and sanitation). 1.10 Economic stabilization and adjustment. In the short and medium term, macroeconomic stabilization efforts have been focusing on fiscal revenue enhancement, and imposing financial discipline on the enterprise sector; Prices, interest rates, external trade and the foreign exchange regime have been liberalized, while succeeding in curbing inflation and strengthening the currency. National Environment Action Plan: 3 Priorities for Action 1995-97 1.11 Structural reforms underway include privatization, already almost completed for small-scale service and retail operations and advancing for medium and large enterprises, enterprise reform, including restructuring large scale enterprises and removing subsidies, and private sector development, with legislation to expand private ownership, clarify property rights, and build an incentive framework encouraging investment and breaking up dominant structures. Sectoral reforms are designed to promote a rapid response in key sectors of the economy, particularly in agriculture and in the financial sector. 1.12 Many of the policy steps of the Figure 1.2: Share of Environmental Investment Government reform program (price of Total National Icome liberalization, removal of imports and export quotas, privatization, imposition of hard budget constraint) are expected to contribute 05 to environmental improvements. For example, increased prices for natural 0 4 resources should encourage resource 03 ~03 conservation and reduce the level of air and water pollution, and waste generation. On 02 2 the other hand, economic downturn and 01 budgetary restrictions have severely constrained environmental spending. The 0 _ l _ l _9*3_ share of environmental investments in the 1985 1990 Year 1992 1993 country's national income dropped to a record *efnbgesh] low level of 0.05 percent in 1992, going up in 1993, yet to still very low level--0. 12 percent (Figure 1.2). 1.13 In the short term some policy measures may also have an adverse environmental impact. Price increases force individuals and organizations to shift to alternative fuels, some of which are more polluting, such as coal, or more ecologically damaging, such as wood stripped from erosion-prone slopes. For example, up to 95 percent of rural households are using wood fuel (in combination with other energy sources). Most of it is freely collected along roads and in forests--only about 17 percent of the firewood used is purchased'. Accelerating deforestation is the result. Similarly, privatization, not combined with proper enforcement of environmental regulations, may lead to neglecting necessary environmental costs and worsening the environmental performance of the privatized enterprises. 1.14 Selection of sources of energy supply should be based on cost considerations, including environmental externalities, and should be combined with conservation measures which can be quickly and inexpensively implemented. Changes in the power market from 1990 to 1994 are illustrated in Figure 1.3. Although the overall energy consumption has decreased, mostly as a result of dramatic output decline, the shares of electricity, and firewood and dung cakes have increased. For electricity, the increasing share is due to raising residential electricity consumption (tripling in rural households and doubling in urban households between 1990 and 1993)2. This probably reflects state policy encouraging the consumption of nationally-produced electricity, including lax collection of electric fees, and the reduced availability of other fuels. Raising share of firewood is particularly alarming in light of the fragile condition of the national forests. Energy consumption per capita is well below the average for the FSU, mostly because of a low share of energy intensive industries in the economy. I/ Kyrgyzstan Energy Sector Review. _/I Kyrgyzstan Energy Sector Review. National Environment Action Plan: 4 Priorities for Action 1995-97 1.15 Many industrial enterprises use old Figure 1.3: Breakdown of Total Primary Energy Supply techinologies and equipment is poorly mlainitained due to lack of funds for maintenance and spare parts. With the break tip of the FSUJ, the financial position of these 7OM enterprises has further deteriorated. 6__ Industrial restructuring will influence the iricdustry mix--the most significant short-term soa _l ICm environmental benefits may be gained through s _ CCU ma.rlrket-induced shifts away from industries _ NahJrHI ,"s whlich are no longer viable, to processes a _Prd Pructs whichl pollute less. Non-ferrous mining (such 200D _ E -Wnoty as gold) and hydroelectric power generation applzear to) he promiiising sectors -- both of o whilch can have negative environmental 199. 1994 impacts if not welli-managed. Environmental regulationis will need to be responsive to poteunial development in these areas. .16 Agriculture has considerable potential for development and is a key sector targeted for support and refornm. Foreign investors are interested in the development of gold mining. Both agriculture and miiiing also bring with them severe environmental liabilities from past management practices. The reform prograni must be balanced to avoid incurring further social and environmental costs, and economic ;lialysis of rcforin options must integrate these costs. I 17 This period of economic change is a unique opportunity to introduce sound environmental policies whichi reinforce the economic signals. If environmental policies are integrated with economic change as they should be, then they will be more easily and effectively adopted. For example, environmental charges and fees should be introduced as part of an overall tax reform package. Actions which disCoLurage "bad behavior" (such as pollution fees) can be balanced with rewards (reduced income taxes, or tax rehates for investing in clean technologies). Likewise, actions which regulate landuse or assign pollution liability should be made clear at the beginning of the privatization process, rather than later when owners have a vested interest in resisting regulatory control. Rational fees, tariffs and standards for resource use, such as those proposed by the government, will help encourage more efficient resource use In addition, miore clearly defined rights structures will encourage investments in resources which pro. idle long-term returns. National Environment Action Plan: 5 Priorities for Action 1995-97 2. SETTING GOALS AND PRIORITIES 2.1 Why is it important to be concerned about environmental issues? Kyrgyzstan faces difficult economic and social dilemmas. Why not defer environmental issues until other problems have been addressed? The simple answer is that some environmental issues can not wait because they are critical for the economic development of the Republic, the protection of public health, or because their neglect may lead to irreversible damage. Other environmental issues may have a relatively minor impact on the economy or on the public--they can and should be postponed. 2.2 Choosing what is important today and what can be deferred is not easy. It requires both scientific knowledge and public consensus. Knowledge and public priorities will change over time. As a result, the National Environmental Action Plan (NEAP) will be updated. The NEAP focuses on a small number of crucial problems which deserve priority attention now and emphasizes the collection and dissemination of sound information. Other issues will be raised in the future, as the success of this Action Plan is assessed, conditions change, and new information is available. 2.3 The NEAP distinguishes between priorities and goals. Priorities are the actions that need to be taken in a two or three year period, carefully allocating available resources. Priorities will need to be adjusted and new ones introduced from time to time in order to reach long-term goals. The long-term goals for the Kyrgyz Republic address two priority areas: (i) increasing the productivity of renewable and non-renewable natural resources; and (ii) ensuring good public health. Both are of critical importance for the economic development and public welfare. A. KEY ENVIRONMENTAL PROBLEMS 2.4 The key areas of envirorunental concern identified by the NEAP team are the unsustainable use of natural resources and the impact of pollution on public health. The nature of the concerns is summarized below. Greater detail on each of the issues can be found in the attached background papers. Unsustainable use of natural resources 2.5 Inefficient use of water. The Kyrgyz Republic is rich in water resources, although the amount of available water varies greatly throughout the country. Watersheds and catchments must be actively managed to protect and maintain these supplies. The irrigation, rural and urban water supply and sanitation infrastructure in the Kyrgyz Republic is well developed, but it is falling into disrepair due to financial and personnel shortages. Its continued functioning is also essential. The economic and social costs of inadequate maintenance could be very large, especially if new capital investments are required to replace facilities that are no longer usable. 2.6 Land degradation due to overgrazing, and inappropriate farming and irrigation practices. The majority of the Kyrgyz people live in rural areas (Figure 1.4) and depend directly or indirectly on the productivity of the land. For rural populations to have an acceptable standard of living, soil productivity must be maintained and enhanced, and the production of renewable resources (livestock, crops and forests) managed in a sustainable manner. If steps to reduce erosion are not taken, there will be growing economic, political and social costs from lost productivity and from sedimentation-caused capacity loss in reservoirs. National .iivironment Action Plan: 6 Priorities for Action 1995-97 2.7 Overexploitation of fragile forest Figure 1.4: Population of the Kyrgyz Republic resources. The State Forest Fund includes (Thousand People) fifteen percent of the the land area in the Republic. Deforestation in Kyrgyzstan is very serious, however, and most of the land in the Fund is used as rangeland. The loss of forests is due to high levels of tree harvesting in the past, the enormous pressure of - extensive grazing by large numbers of 2 | _ _ livestock, and the increased demand for _ _ wood, as a result of reduced imports of wood __ _ _ _ ___ _ .P - from FSU republics and reduced availability * R.Pp of other fuels. The official timber harvest is Iwo about 40,000 m3. The estimated illegal *_ fuelwood and timber extraction is about o 500,000 m3 or higher. Unfortunately, there g i E ; are no accurate figures on the existing standing stock, annual growth, or rate of deforestation. Uncontrolled cutting, however, will increase hardship in the future for rural people dependent on wood and non-wood products; it will accelerate deterioration of the upper watersheds and reduce biodiversity. 2.8 Loss of biodiversity. The ecosystem and species diversity of Kyrgyzstan is naturally high because of the dramatic relief, numerous microclimates, and diverse landscapes. A relatively large number of animals are endangered, however, and are listed in the Red Data Book of Kyrgyzstan. While hunting is officially regulated, enforcement of hunting control is very limited and licensing is very liberal (particularly for foreigners). Protected areas cover only 2.7 percent of the territory, and capture remnants of several ecosystems--most of them too small to maintain viable populations. There is a real threat for irreversible habitat loss, with negative global and local impacts. In the Kyrgyz Republic biodiversity protection is critical for potential development of tourism and therefore has a significant economic value. 2.9 Wasteful mining and refining practices. The Kyrgyz economy depends on the sound management of its nonrenewable mineral resources as well. Some of these will grow in importance in the future; others will no longer be in demand. Inefficient mining and refining industries created dumps rich in materials, but so badly maintained that heavy metals and other toxins are leaching into the environment. The economic costs of these practices are measured in terms of lost revenues from wasted resources, and potential health damages from exposure to toxic mine wastes. Impact of pollution on public health 2. 10 Current data suggest that the most serious human health concerns in Kyrgyzstan -- childhood nutrition, hepatitis A, tuberculosis, maternal and infant morbidity and mortality -- are generally related to environmental exposures against which low-income populations have few defenses. These include such as unsanitary living conditions, use of contaminated food, poor water supply, inadequate nutrition, and exposure to toxins or biological contaminants. In addition, public health is expected to worsen as public infrastructure deteriorates. Infant and child morbidity are also increasing, caused largely by respiratory diseases in the winter from insufficient heat and more polluting fuels in homes and schools, and diarrheal diseases in the sunmmer from poor sanitation and contaminated water supplies. National Environment Action Plan: 7 Priorities for Action 1995-97 2.11 Water pollution. In general, Kyrgyz water supplies are of excellent quality at their source. Water contamination occurs as the result of the deteriorated condition of the piped distribution systems, including treatment plants, and the lack of protection of the surface water sources from residential, industrial and agricultural wastes. Simple steps, such as funding regular maintenance and operations of the systems, enforcing land-use controls near water sources, and instituting low-technology, local solutions to sanitation would reduce many of the social costs associated with poor public health, and avoid irreversible damage to aquifers. 2.12 Air pollution. Although there are localized air pollution problems of an unquantified extent around smelters and mining waste dumps, the primary air pollution-related health problems are due to low quality fuels and non-operating pollution control devices associated with energy plants and transportation. These problems can be dramatically reduced by properly maintaining and operating existing dust collectors in the major industries and in district heating and power plants, and by regularly maintaining the city bus fleets. 2.13 Mining wastes (uranium, mercury, and heavy metals). Waste management in general is not well-developed, but in the mining industry, where the presence of toxics in the wastes makes good management of grave importance, the quality of environmental controls has been at best inconsistent and at worst critically negligent. Environmental monitoring has ceased for funding reasons at virtually all sites, the extent of health risk is unknown at the nearly 50 uranium tailings sites inherited from the Soviet Union, at the Haidarkan mercury combinat, or at the Kyrgyz Mining and Metallurgical Combinat (heavy metals). Experience in other countries shows, however, the localized risks to human health from exposure to these toxics can be severe. B. PRIORITY ACTIONS 2.14 There are many important problems in Kyrgyzstan -- how do we judge which environmental issues should receive priority attention? The Kyrgyz Republic's overriding objectives are to ensure sustained economic growth and to reduce poverty. Economic transfornation and the creation of new employment opportunities are key to attaining these objectives. Funds for environmental investments are limited and should go to actions which will support positive economic changes, or to problems which may be aggravated by the economic changes. 2.15 Three types of environmental actions are identified as priorities in the short term: (i) Well-targeted expenditures are required to strengthen institutions and to rehabilitate, operate and maintain physical infrastructure that is rapidly deteriorating. Both will become increasingly costly to repair or replace. Timely investment in water and sanitation infrastructure will yield high benefits relative to the cost, just as small investments targeted to rural natural resource-based enterprise development can build strong links between economic development and natural resource conservation. (ii) A significant effort to collect well-defined information for pollution loads, environmental degradation, resource use, status of waste sites and impacts on both population and ecosystems is required in order to make sound judgments in the future regarding priorities for environmental action. The ratio of economic benefits to costs is again likely to be high. Better information will help ensure that the most urgent issues are tackled first. National Environment Action Plan: 8 Priorities for Action 1995-97 (iii) The environmental regulatory framework should be enhanced and the ability of staff in environmental institutions to operate effectively in the changing economic structures should be supported and strengthened. International assistance should be well coordinated and applied to the most important economic and environmental issues will facilitate this process. 2.16 Section 3 of Part I presents a summary of the major current environmental concerns. Recommended actions are described in the following Section 4. Part II provides a more detailed description of those concerns in the form of background papers on environmental health, water management, natural resource management, mining and metallurgy sector, industry, and energy. C. CRITICAL CONSTRAINTS 2.17 Financial constraints. In the current economic climate competition for funding both on national and on local levels is severe, and spending for environmental activities is harshly restricted. In order to prevent irreversible deterioration of public utilities and ecosystems, at least minimal resources should be secured for continued operation, maintenance and repair of vital infrastructure, as well as for important inputs in agriculture and forestry. Currently, only a negligible amount is available in the national budget, which imposes the need for raising funds through international assistance. Over time, a growing proportion of the money must come from the users of municipal and agricultural or forestry services. 2.18 Policy and institutional limitations. Money is not the only constraint. Under the former soviet system, generous financing for large capital investments was easily available, and proved to be the most inefficient way to improve resource productivity or environmental performance. In fact, broad economic policy reform and market accountability will address many of the causes of wasteful resource use and environmental degradation without the need for costly environmental expenditures. Efficient policy combined with small- and medium-scale targeted interventions tailored to the local economic and ecological structure have proven to be far more effective. No amount of investment will make up for policies that are misplaced or that encourage inappropriate practices. 2.19 Human resources. Successful policies and effective institutions are only possible if well-trained staff is available. While there are many highly skilled technical specialists in the country, locating appropriately trained and committed local managers to implement projects, devise low-cost innovative solutions to problems, and direct efficient and competitive enterprises is difficult. This Action Plan stresses actions to ensure that the human resources are available and sound incentives are in place to build a sustainable future for Kyrgyzstan. National Environment Action Plan: 9 Priorities for Action 1995-97 3. MAJOR ENVIRONMENTAL CONCERNS: DEFINITION AND UNDERLYING CAUSES A. WATER 3.1 Limited water supply. Although Figure 1.5: Actual Water Use by Sector (1992 - 1993) Kyrgyzstan is water rich, available water (Million m3) supply is determnined by agreement among the five Central Asian States on the sharing of surface and ground water3. Kyrgyzstan uses all of its allotted share. Map 2 (IBRD #26620), attached at the end of this report, indicates the distribution of rivers, rainfall, permanent snowfields and glaciers throughout the country.) Water availability is therefore very limited. There are numerous opportunities for low-cost improvements in ,p (414) efficiency and water conservation, not utilized 8e/6 at this stage. This is evident in the water distribution systems in the larger cities, and in the major irrigated areas of the Chu and _ Industry (860) Naryn River basins. In these areas, irrigated DOMunCpa 414) agriculture alone uses about 88 percent of the total water consumed. Basic improvements in the water distribution infrastructure and Agncuture water-use practices could result in major 88lb water conservation benefits. The water surpluses gained could in turn provide opportunities for new development in either agriculture or industry. Figure 1.5 illustrates the water consumption imbalance among the three primary sectors of the economy. 3.2 Inadequate operation and maintenance of irrigation systems. Key elements of the irrigation infrastructure of the Republic are aged, including pump stations, diversion works, and reservoir facilities. In addition, regular canal cleaning has declined, and water control structures are not repaired. As a result of the lack of maintenance, repair, and replacement, irrigation capacity and the volume of water delivered have declined. Out of the budget of 285 million soms which was agreed upon in 1993 with the Ministry of Finance, only 60 million soms were officially allocated, and 30 million soms actually provided (an amount only sufficient to pay minimal salaries). Expenditures on maintenance and repairs have declined from 56 percent of the estimated requirements in 1991, to 9 percent in 1992, and 5 percent in 1993. While increased efficiencies and restructuring of sector institutions, infrastructure, and modes of operation are needed, failure to adequately fund general operations and maintenance will have costly consequences in such an economically vital sector. Agriculture contributes 28 percent of the GDP (constant 1992 prices). Agricultural production is highest on irrigated lands. 31 Under the forner Soviet Union, Kyrgyzstan was required to allow over 75 percent of the water in rivers that originated in the Republic but flowed into neighboring republics to pass on to them for their use. Current inter- republic agreements continue this division of water-rights, with no compensation from the other republics to Kyrgyzstan for this valuable resource. National Environment Action Plan: 10 Priorities for Action 1995-97 3.3 Shortage offunds and personnel. An estimated 70 percent of the current water supply network is in poor condition and needs rehabilitation, repair, and replacement. About 97 percent of the piped water supply systems for rural people is provided by wells that supply water mains, hydrants and standpipes. Much of this system was built prior to 1970. There are no funds to install additional disinfection equipment where it is needed or to buy chemicals for existing units. Funds are only available for emergency repairs. Barely 10 percent of the previous number of staff are available to monitor drinking water quality in this highly dispersed system of water supply in rural areas. The lack of staff and budget has resulted in about a 75 percent reduction in the rate of expansion of coverage and in untrained personnel operating and maintaining many systems. 3.4 Exposure to contaminated water. Ground water supplies 90 percent of all drinking water provided by centralized pipe systems, and a high proportion of industrial water. The observed quality of freshwater from underground sources fed into the centralized distribution systems in urban and rural areas meets the present state standard for drinking water with respect to physical, chemical, and bacteriological parameters and generally does not require treatment before distribution. The deteriorated condition of piped distribution systems and the exposure of some of the surface water sources, however, create vulnerabilities to contamination and associated health risks. Some towns must still rely on surface water that is locally vulnerable to contamination from agro-chemicals, livestock manures, and sanitary wastes. Areas of low water quality are located in the most populated regions of the Chu river basin, in Osh and Djalal-Abad Oblasts, and in rivers flowing into Issyk-Kul Lake. 3.5 Contamination of the upper part of many aquifers with substances such as heavy metals, oils, and sanitary wastes is extensive in areas near industrial and mining sites and cities. The effect of these pollution sources is to create a layer of contaminated water overlying the deeper zones of good quality water that is being withdrawn by water supply wells. Unlike immiscible fluids such as oils which would tend to float above the good quality water, soluble substances such as heavy metals and nitrates gradually diffuse throughout the aquifer--eventually contaminating it to dangerous concentration levels if the infiltration of pollution from the surface continues. Hence, further pollution should be prevented even in those cases where pollution already exists. The intrusion of saline ground water into the aquifers due to over-pumping municipal water supplies and irrigation wells is another example of unsafe exploitation of groundwater. This has been observed particularly in Osh and Djalal-Abad Oblasts. 3.6 Unprotected surface water sources. Efforts to enforce sanitary protection zones in areas near surface water intakes or where water infiltrates into the aquifer have proven ineffective. Uncontrolled construction of homes without sanitary facilities or connection to sewers, expansion of livestock operations, laundries, storehouses for agro-chemicals and fertilizers, and unsafe disposal of liquid and solid municipal and industrial waste have continued to expand in an unregulated manner. They are all sources of surface water contamination. Osh provides an important example of the consequences of ineffective control of land use near raw water sources and the resulting vulnerability of the water supply. One of the principal water sources for Osh is the Ak-Buura River which is prone to sudden and damaging floods. This basin has numerous large livestock and farming operations, and dachas without adequate sanitation facilities, from which wastes are washed into the water supply system during these floods, resulting in disruption of service and dangerous contamination of the raw water supply. 3.7 Waste water collection capacity in the towns equals about 70 percent of the volume of water supply capacity. All the towns served with waste water collection systems are provided with biological treatment facilities. However, no systematic assessment is available of the current performance and effectiveness of these treatment facilities, and anecdotal reports from the sanitary inspection service indicate that over half are ineffective or inoperable. Sanepid inspections also show that municipal solid waste is not collected in a timely manner, and over 90 percent of all municipal solid waste disposal sites do not meet sanitary standards. These conditions contribute to the steady increase in untreated pollution entering the environment and infiltrating into underground aquifers and surface water channels. National Environment Action Plan: 11 Priorities for Action 1995-97 3.8 Health damages from poor personal hygiene. Hepatitis-A and OKZ4 both increased in 1993. The most infected areas are Osh and Djalal-Abad oblasts. These oblasts have large irrigated areas where canals and other open water supplies are contaminated by free-ranging livestock and incorrect disposal of human excreta. Drinking water is probably not the main source of waterborne diseases in adults, as the Kyrgyz people traditionally drink boiled water in the form of tea. Children, however, often inadvertently drink untreated water. Infection also takes place by eating contaminated food and through poor personal hygiene. These are largely cultural factors, and individuals need to be educated about how they can limit their exposure by altering their behavior. 3.9 Conclusions. There are sufficient quantities of raw water of excellent quality available for domestic and industrial use for the foreseeable future, provided water resources aie properly managed. Without significant renovation of the urban and rural distribution networks, improvement in the efficiency of on-farm use of water, and initiation of a major effort to increase water conservation in all sectors, water availability will be a constraint to future development. 3.10 The regulation of land use and enforcement of pollution prevention has been seriously inadequate in areas around water sources. This has led to negative health consequences in the form of increased morbidity and mortality among populations with vulnerable raw water supplies--particularly those using rivers, canals, and open reservoirs. 3.11 The present system of financing the maintenance, rehabilitation, repair, replacement, and modernization of drinking water and irrigation water supply infrastructure is insufficient. As a result, major health and economic costs are already evident. These problems will inevitably grow as the present infrastructure ages, and functions deteriorate further, including intakes, pumps, disinfection equipment. canals, gates, and distribution pipe systems which in most areas are over 30 years old. 3.12 The key water management organizations have been seriously weakened during the past few years. The Republic depends on these organizations and their staff for protection and management of this vital resource. Decreased size and improved efficiency of public sector organizations are legitimate aims during this stage of the transition, but the loss of highly trained staff and inoperable and out-of-date equipment may leave these organizations permanently crippled, with direct health and economic consequences as water management and water supply deteriorates. B. LAND 3.13 This section looks at some of the causes for the low productivity of land in the context of crop production, livestock management, and forestry, and describes briefly the high potential benefits from biodiversity conservation in Kyrgyzstan. 3.14 Low crop yields. Kyrgyzstan's principal crops are cereals, maize, and cotton. The main crop production regions are the Fergana Valley in Osh and Djalal-Abad Oblasts, in the Chu and Talas valleys, and in the Issyk-Kul basin. Crop production contributes 40 percent of the gross value of agricultural output (livestock contributes 60 percent), and in 1990, about half of the total value of exports came from the agricultural sector. Agricultural policy has been directed towards self-sufficiency in cereals for food security, with a number of supporting regulations, such as compulsory marketing, and centralized farm management. 4/ Identified OKZ is defined as acute enteritis, colitis, gastro-enteritis and rotavirus infections caused by identified factors. Unidentified OKZ is defined by unidentified gastro-intestinal infections and unidentified toxic food infections. National Environment Action Plan: 12 Priorities for Action 1995-97 3.15 The ovenvhelming problem with regard to crop production in Kyrgyzstan is one of economics. Inappropriate policies and regulations, bureaucratic hindrances and slow structural reforms (particularly land redistribution), in combination with inflation, delayed payments to crop producers, and absence of credit facilities, are the main reasons for the problems in the agricultural sector. As a result, many farmers turn away from commercial production to food crops for subsistence. This is evident from the decline in marketed and processed output, which is much greater than the fall in primary agricultural production. 3.16 Agriculture productivity is presently Figure 1.6: Use of Agro-chemicals per year constrainied primarily by the lack of an in the Kyrgyz Republic adequate water supply to the irrigated lands (tons) and sufficient nutrients to achieve reasonable harvests. Compared to Western countries, use of agro-chemicals is low and has declined 733 significantly over the last decade (Figure 700 6139 1.6). The application rates of fertilizers are 10 s to 20 percent of the rates in Western 5x 43* 4530 countries. Average use of pesticides is less than 50% of application rates in the West. 4000 3479 Increased agricultural inputs would enhance 300 23 the productivity of crop production. 20 Increased use of inputs must proceed with l iii caution, however, to avoid water pollution low associated with the improper handling and o storage of agro-chemicals--which is already a 1980 1981 1985 199 1991 1992 1993 problem in some areas. 3.17 On-site soil erosion and salinization of improperly irrigated lands are the key long-term environrmental concerns related to landuse. About 60 percent of the arable lands are affected by topsoil loss and 6 percent by salinization. Compared to the lack of adequate water and nutrients, soil erosion and salinization have less immediate impact on production levels. They are the product of improper water supply management and cropping practices, however, and if not addressed these problems will have profound long-term effects on the productivity of the land. 3.18 It is important to emphasize that sound economic policies in agriculture will initially have a greater impact in addressing rural environmental problems than specific environmental measures. This is because environmental problems in rural areas stem to a large extent from a reaction of farmers and livestock holders to the prevailing economic insecurity and to poverty. 3.19 Decreasing productivity of rangelands. The size of Kyrgyzstan's herds have dropped dramatically since independence. Nevertheless, they are still at levels which are twice the estimated carrying capacity of Kyrgyzstan's grasslands, and soil erosion and reduced productivity affects 60 percent of the pastures. Most of the livestock has been moved from collective and state ownership to the private sector and grazing pressure has increased on lands around settlements. With land tenure uncertain and monetary instruments weak, many people are keeping their assets in their herds--a traditional source of wealth and security. 3.20 The implementation of economic reform policies, such as price liberalization and land tenure assignment, should encourage more sustainable livestock management. Overall herd size is already shrinking as a result of the changing economic situation. Flock structure is changing, and more seasonal lambs are being sold for meat export. In addition, livestock grazing patterns can be more carefully National Environment Action Plan: 13 Priorities for Action 1995-97 managed. For example, depending on the life cycle of the particular fodder species, animals can be concentrated on small plots of land for short periods and frequently rotated--resulting in a less destructive feeding pattern. 3.21 Disappearingforests. Forests cover Figure 1.7: Land Use Categories in the Kyrgyz Republic about 4 percent of the country, or 7 percent of the manageable land area (Figure 1.7). The Forest Department, under the State Committee for Environmental Protection, is responsible for the management of 15 percent FoeSt (0 8) of the territory. Map 3 (IBRD #26688) illustrates the lands under the administration of the Forest Department. At the local level, _ 9 the Forest Department is represented by 32 Z., 45% Leskhozes ("forestry farms''), managing 95 percent of the state forest land. These lands are not subject to privatization. Leskhozes are productive entities and are involved in CsnM (14) collecting, processing, and marketing fruit, 7% honey, lumber, furniture, firewood, livestock and crops. About 55 percent of their land is leased out by regional and national authorities as rangelands to herding groups from both Kyrgyzstan and neighboring republics. These leases are currently being restructured or reclaimed. The leskhoz budgets are channelled through the Oblast and local authorities. These authorities may reallocate funds at their discretion, which has resulted in budget cuts of up to 70 percent for some of the leskhozes, as local government priorities are often not focussed on forestry. Curtailed funds mean that forest management activities are minimized, and enforcement capability against illegal cutting and grazing is very weak. In addition, processing and marketing forest products are hampered by the lack of short term credit facilities. 3.22 Biodiversity at risk. Map 4 (IBRD #26687) shows the major categories of protected areas. They are widely dispersed, with no connecting corridors. Wildlife numbers are decreasing rapidly from intensive hunting, and habitat fragmentation and destruction. 3.23 Kyrgyzstan has good prospects for tourism development, due to its great scenic beauty. Adventure tourism such as mountaineering, trekking, and horseback riding have the greatest immediate potential. Wildlife resources are key elements of these attractions and tourism revenues may be used in part to support conservation goals. Map 4 also includes cultural heritage sites which may be of interest to tourists. These sites are frequently adjacent to protected areas or leskhoz lands. Infrastructure, facilities and services are currently lacking, however, and widespread hunting and poaching have made wildlife very wary and difficult to observe and enjoy. Lack of finances for the protected areas and pressure from grazing, hunting and firewood collection contribute to the management problems. There is a need to prepare a National Biodiversity Conservation Strategy which integrates conservation with development and other institutional goals in a cost-effective manner. International resources should be coordinated to assist in this effort. Ratifying international conventions would facilitate this process. The long-term benefits will be substantial. 3.24 Degraded watersheds. Due to the seismic activity of the country, steep slopes, and unstructured fragile soils, the land is naturally very susceptible to soil erosion. The situation is aggravated by human activities, mainly through inappropriate livestock management and the loss of a protective vegetative National Environment Action Plan: 14 Priorities for Action 1995-97 cover. Land slides, mud flows and gullies are ubiquitous in the landscape, causing damage to infrastructure and endangering human life. There is clear evidence that irrigation systems and reservoirs are silting up, causing drainage problems and loss of storage capacity. The extent to which hydropower reservoirs are silting-in and losing storage capacity is unknown, but judging by the amount of soil erosion in the upper catchments, downstream sedimentation must be high. In addition, the water storage capacity of the soils is low, and streams and rivers have extreme seasonal variations in flow, resulting in destructive floods and water shortages. 3.25 Conclusions. Improving the productivity of land in the broadest sense will depend on sound economic policies, and well defined land use management. These, and other measures to improve the income of rural populations will go a long way toward addressing some of the most pressing environmental problems in rural areas. At the same time, a forward looking strategy will include modest measures to ensure a sound biodiversity strategy. C. ENVIRONMENTAL CONCERNS RELATED TO THE MINING AND METALLURGY INDUSTRY 3.26 The mining and metallurgy (M&M) sector is commonly associated with significant environmental problems. Inadequate information is available, however, to proceed with measures other than information collection and establishing a sound regulatory and enforcement framework. Environmental investments in the sector risk being very expensive, and the country cannot afford to make inefficient investments which do not achieve tangible environmental improvements at least cost. 3.27 The mining and metallurgical sector is facing serious financial and market-related problems, not least because of the rapid increase in energy prices (the cost of energy is often more than 50% of the cost of production). Many skilled technicians and managers departed after independence. 3.28 The mining and metallurgy sector accounted for 10 percent of industrial production and 11 percent of the workforce in 1992. The minerals produced include antimony and antimony oxides, mercury, gold, uranium oxide, minor rare earths (lanthanum, cerium, dysprosium, erbium, gadolium, holmium, etc.), molybdenum and calcium fluoride. A mine and processing plant for tin and tungsten is currently under construction. In the past the sector was oriented primarily toward the traditional markets of the FSU and thus is now heavily affected by the collapse of these markets. The future world markets for the Republic's mineral resources are either modest (gold, antimony and mercury) or not promising (uranium, rare earths, tin/tungsten and molybdenum). 3.29 Gold production is the only sector which is attracting notable interest on the part of foreign investors. The development of two commercial gold deposits in joint venture with foreign companies is being in progress (one of them, in Kutmur, is co-financed by the IFC), and further exploration for bulk deposits is likely. It will be critical that the development of these gold deposits be carried out in the context of sound environmental policies, including environmental impact assessments which meet international standards. Exposure to toxics 3.30 There are a number of areas, usually associated with active or closed mines or processing plants, which are identified by Kyrgyzaltin as sites of particular environmental significance due to abandoned mine workings, tailings deposits, waste dumps or impoundments. Map 5 (IBRD #26619) (Mining Hot Spots and Mining Areas) identifies the major locations of concern. Monitoring at all of these sites has been limited due to lack of resources, and the state of containment of potential toxins is unclear in a number of instances. National Environment Action Plan: 15 Priorities for Action 1995-97 3.31 Mercury and antimony. The surface antimony mine in Kadamzhay and the deep shaft mercury mine in Haidarkan are both located in the middle of settlements of approximately 12,000 inhabitants each. There are no sanitary or safety zones separating housing from the mines and tests in housing areas indicates residents are exposed to antimony and mercury vapors. Although the reliability of the data is unclear, the morbidity rates in the exposed settlements appear to be very high, and it is thought that the non-mining population is exposed to unacceptable health risks. 3.32 The mercury mine in Haidarkan is scheduled to be closed and production shifted from mercury to other heavy metals. Soil pollution will remain, however. Consequently, a monitoring program is urgently needed to determine the extent and impact of residents' exposure to on- and off-site pollution. The need for major measures cannot be ruled out, such as relocating inhabitants from the contaminated area. 3.33 Radiation. Under the Soviet Union, uranium was a critical strategic asset and in high demand. Since independence, uranium mining operations have ceased, while uranium oxides processing at Kara- Balta continues using imported concentrates. Sites such as the facilities at Kara-Balta and some former uranium tailings dumps have been called by local experts "clear and present dangers to the health and safety of numbers of people". For many combinats, mines and waste dumps, however, information is not available on the environmental conditions within and around the sites. The lack of data makes any statement about conditions at the sites controversial. The absence of environmental oversight, however, also makes the existence of hazardous conditions likely. In addition, there is concern for exposure to radiation from nuclear testing in China. 3.34 Due to the lack of monitoring, there is no conclusive evidence of radon pollution from natural sources, although the nature of the substrate makes the existence of radon emissions a possibility. There is sufficient evidence, however, of the need for general health-oriented monitoring of radiation, particularly in areas surrounding dumps related to uranium mining and processing, at the sites of former accidents, and from contaminated materials, such as old equipment and uranium-containing coal used for fuel. D. Ait 3.35 Increased pollutionfrom coal. Air pollution problems are dominated by the growing shift from gas to coal for power and heat, especially in the major urban areas. The shift is a consequence of the rapidly rising prices for natural gas which has to be imported at close to market rates. The Kyrgyz Republic has abundant supplies of coal that is low in sulfur but causes harmful emissions of particulates and coal ash, which are a problem in the largest cities. Like other fuels, the price of coal is also rising, due to increases in the cost of freight and the physical difficulty of transporting coal within the country. Because of these difficulties, coal burned in the north is primarily imported from Kazakhstan. Industrial air pollution has significantly declined because of the rise in fuel prices and the large contractions in the economy. Until industrial restructuring has progressed further, however, it is difficult to predict future trends. 3.36 In rural areas without central heating and power plants, heating is provided by coal, wood, and manure/straw fuels. Rural communities are gradually installing additional transformer capacity (both with and without government financial assistance) to enable conversion to electric space and water heating and electric cooking. Electricity consumption in the rural households is increasing; however, most of the poor rely on wood and nanure/strawfuels. The shift in fuel supply toward more reliance on fuel wood creates even greater environmental pressure on the few remaining forests. National Environment Action Plan: 16 Priorities for Action 1995-97 3.37 Air pollution in Bishkek. Air pollutants accumulate in the lower levels of the atmosphere over the city of Bishkek due to its climate, geographical position and meteorological conditions. Seventy-eight percent of the pollutants are emitted by the municipal power plants. In addition, there are also over 270 relatively small industrial, municipal and transport enterprises within the municipal area which have both routine and sporadic atmospheric emissions. There are no large industrial polluters such as oil refineries or metallurgical plants, however. Private transport contributes to air pollution, as well, but its share is probably declining due to the sharply rising price of fuel. 3.38 Conclusions. The largest air pollution reduction benefits can be achieved through the installation and/or correct use of dust filters (electro-static precipitators) in the major power and central heating plants in Bishkek and Osh. This is a relatively inexpensive measure that can bring about significant benefits to human health. In addition, systematic maintenance of the large public bus fleet will go a long way toward reducing the most harmful emissions from vehicles. National Environment Action Plan: 17 Priorities for Action 1995-97 4. FRAMEWORK FOR ACTION A. ADDRESSING PRIORITY PROBLEMS Water supply systems at risk 4.1 The health and economic well-being of the Kyrgyz population depends critically on a well functioning water supply and water management infrastructure. Failure to ensure sound maintenance of the already deteriorating system will cause significant long-term costs both to individuals and to the economy as a whole. There is no need for massive investments in sophisticated technology to reverse the process of deterioration -- rather, the emphasis should be placed on the gradual introduction of new institutional arrangements, on halting the exodus of skilled people from public sector organizations, and on simple, well known, and low cost investments in the impressive water management and sanitation infrastructure that already exists in the country. In addition, a modest program is justified to expand these services to vulnerable groups. 4.2 Policy response. Water supply and waste water operations by the Urban Municipal Services (KJKS) are financed through water tariffs and fees paid by its clients for services. In the case of households, water charges are paid as part of a lump sum charge paid to the local communal department for municipal services. Domestic tariffs for water and sewer services are established by local authorities based on the accounts of the local unit of KJKS which are regulated by the State Committee on Prices, which unfortunately do not allow the cost of maintenance of existing facilities to be included in the rate base. At present tariffs cover between 50 and 100 percent of real operating expenses. 4.3 Tariffs negotiated with industrial enterprises include the underpayment by domestic and municipal consumers which results in a significant cross subsidy by industry to these other consumers. The central government, which formerly subsidized services and construction of new facilities, provided 1 million soms in 1994 for construction, but no operating subsidies. Arrears are currently very large--(more than 12,000,000 soms) and growing. It is estimated, however, that if current tariffs reflected the full cost of operation and maintenance, few household could afford to pay the water charges. 4.4 A new water law was passed by the Supreme Soviet in the fall of 1994. The new law strengthens the legal basis for water management and the regulation of both water quality and water use, but the provision to begin the gradual recovery of state costs for infrastructure construction, operation, and maintenance costs was eliminated for agriculture and forestry water uses. At present therefore, the Ministry of Water Economy (MOWE) has no means to assess water charges to recover even part of its costs, and no means to reorganize irrigation to decentralize responsibility for routine maintenance activities to the farmers or other local irrigation organizations such as water use associations or farmer- owned irrigation districts. 4.5 In order to ensure the long-term financial sustainability of the country's water management program, the overriding policy issue is therefore to establish sound mechanisms for mobilizing local funds to finance essential infrastructure operation and maintenance services for domestic, industrial, and irrigation water supply. Even before it is possible to resolve the many difficult questions regarding local government organization and finance, immediate measures need to be identified to mobilize funds for rehabilitation and essential maintenance and operations including the purchase of chemicals. Essential steps in municipal water supply and in irrigation will be (i) gradual increase in domestic and industrial tariffs, and (ii) introduction of water charges for irrigation water users. National Environment Action Plan: 18 Priorities for Action 1995-97 4.6 Technical assistance needs. Donor financing could be sought for essential technical assistance needs which might include: (i) Assistance in developing municipal and Oblast governance and financial reforms; (ii) Assistance in strengthening health assessments at the Oblast and Rayon levels, including strengthening local units of Sanepid, Goskompriroda, Goskomgeol, and MOWE monitoring capability and related joint information systems; (iii) Assessment of rehabilitation and modernization needs for irrigation water distribution, and preparation of studies and proposals to gradually reform irrigation water pricing and increase cost recovery; (iv) Development of cost management programs for the maintenance of municipal and irrigation services; and (v) A wide range of training and capacity building activities at the Oblast, Rayon, and municipal levels including, for example, introduction of modern financial management systems such as accounting procedures at the municipal level. 4.7 Financing. Modest amounts of expenditures are recommended to address the highest priority problems of water supply contamination, the most vulnerable water sources, and those population groups most affected in terms of health risks and/or poverty. Interventions could include completion of projects; rehabilitation, repair or replacement of facilities that are not working properly, including pump stations, wells, pipe networks and mains, intakes, reservoirs and storage tanks; treatment works including disinfection equipment, sewers and private sanitation facilities; and purchase of spares and chemicals. Priorities should be based on an assessment of the following factors: (i) Health. The extent to which the proposed project reduces health risks, based on direct measurement of the incidence of water borne diseases, child morbidity and mortality. Decisions can also be based on consistent detection of high risk factors including contamination with bacteria, nitrates, or other factors which can be shown to represent a high health risk under current conditions at the specific location. (ii) Productivity. The economic impact of the problem or the intervention in terms of its impact on agricultural income, reductions in the cost of water, and the effects on local employment (particularly the potential intensive use of local labor). (iii) Equity. The use of low-cost measures using local materials and private businesses and contractors, and the impact on areas with especially low income. (iv) Technical and Financial Factors. Proposed projects should demonstrate that they are based on a least-cost approach with respect to investment, operation, and maintenance; can be implemented quickly with existing technology and available materials; and are capable of being phased over time. 4.8 An inter-ministerial or multi-agency team should form an emergency working committee to evaluate and select proposals from the concerned agencies and local units of government. The Working Committee, possibly with foreign technical assistance, could issue guidelines for identification and preparation of project proposals, develop, describe, and issue criteria for project evaluation and selection, visit project sites, and compile and possibly collect data on which to base the evaluation of sub-projects. National Environment Action Plan: 19 Priorities for Action 1995-97 The guidelines would include well defined procedures for the preparation of feasibility studies, including a standardized, and simplified report format. 4.9 Pilot and demonstration projects. To deal with the most urgent problems, and to demonstrate immediate action at the local level, a number of pilot and demonstration projects should be considered which demonstrate new approaches, materials, and techniques, and have immediate local benefits. (i) Low cost sanitation demonstration projects, such as the introduction of new latrine and septic tank design and construction methods, which emphasize opportunities for income generation (construction of slabs, latrine construction, etc.) and community participation. (ii) Improved operation and performance of existing waste water treatment plants; introduction and pilot testing of lower cost (investment, operation, and maintenance) treatment systems for small towns and villages with piped water and sewer service. 4.10 Consideration should also be given to supporting a village grant and/or credit program to support essential works and income generating activities. 4.11 Longer-termn water supply requirements. At this time, additional water resources should be sought through savings and efficiency improvements in irrigation water use, since industrial and domestic water use is only 10 percent of total water use in the Republic. Investment in additional and new sources of water supply for these latter water uses should be made only after water wastage and inefficiencies are eliminated. This approach is likely to prove far less costly.5 For example, for Bishkek there are plans to expand or supplement the existing sources over the next 10-20 years. A major new field has been identified -- Issik-Atainskoe -- with a capacity nearly equal to the two existing fields. Development of this new field would avoid the growing problems of managing the pollution of the existing aquifers, but at considerable expense. The intrusion of contaminated water into the deeper portions of the existing aquifers should be prevented, and greater efforts made to prevent pollution from industrial, municipal, irrigation, and livestock sources. 4.12 Greater use of the shallower, sometimes polluted ground water for so-called technical or non- potable uses for which it is suitable would also ease the pressure on aquifers and conserve the high quality water for drinking purposes (about 130,000 m3/day are already withdrawn for these uses in Bishkek). 4.13 Institutional strengthening. The capability of government agencies and other institutions to systematically assess priorities is crucial to ensure effective actions with very limited resources. The process for priority setting, planning and capital budgeting can be improved by strengthening the processes and linkages among different agencies to ensure the flow of timely health and economic impact data. The extreme limitations on financing needed for rehabilitation, repairs, and particularly extensions of service into new areas, requires rigorous attention to priority-setting based on the relative impact of improvements on health and the local economy. This type of benefit-cost-analysis requires good quality and timely data on such things as the results of sanitary inspections, tap and water quality data, health statistics, flow distribution data, water shortages and outages, and economic data on production in irrigated areas. 5/ In areas where street and yard standpipes are the predominant mode of water service, water use will tend to be quite low in per capita terms, but there could still be substantial waste where fittings and fixtures are in poor condition. National Environment Action Plan: 20 Priorities for Action 1995-97 4.14 Furthermore, the government must make every effort to ensure that the key water management organizations in the public sector are fully functional and that key technical people remain with these organizations. The tremendous restructuring that these organization have already undergone was necessary in part, but the government should take urgent steps to ensure that these economically vital organizations are not crippled. 4.15 Data and monitoring requirements. There have been reports of significant loss of reservoir storage capacity due to sedimentation in the 15 major and 24 smaller reservoirs. While the detrimental effects of deforestation and erosion caused by inappropriate grazing practices and construction of roads and other infrastructure are evident in many watersheds of the Republic, there appears to be little or no systematic data on sediment transport in the streams and rivers where this might be a significant problem, and no data on rates of reservoir sedimentation and its economic consequences. Since the effects of stream and reservoir siltation are long-term and costly problems to rectify, more systematic monitoring and diagnostic analysis of this problem, and implementation of low-cost preventive measures, should receive priority attention. Maintaining water storage capacity is vital for Kyrgyzstan not only as a source of hydro-power but especially to guarantee adequate water supplies for irrigation during the summer months when water flows are often low and unreliable. 4.16 During the last few years, monitoring capacity has dramatically deteriorated due to a sharp decrease in financing. Lack of basic chemicals, spare parts, glassware, supplies, lack of cars and gasoline, etc. have also contributed to the deterioration of the quality of results. As described above, the types and amounts of future investment depend critically on sound information on water quantity and quality in selected parts of the country. In this regard, the capabilities of the major institution active in this area -- Hydromet -- should not be left to deteriorate any further. Small expenditures on reliable monitoring can prevent wrong and potentially very costly investment decisions. Low productivity of land and forest resources 4.17 Agricultural policy reform. During the privatization and transformation process in agriculture, efforts should focus on changes in policies including land tenure, payments to producers, and agricultural credit. These will contribute most toward increasing crop yields in the longer term. In the longer run, farmers should be given information and supported in their efforts to reduce soil erosion through reduced tillage, mulching, contour ploughing, strip cropping, improved irrigation and better storage and handling of agro-chemicals. 4.18 Support to the forestry farms (leskhozes). Modest investments in leskhozes are warranted at this time, however, as the leskhozes are not undergoing restructuring or privatization and could contribute significantly toward environmental improvements in rural areas. At present, the leskhozes are suffering radical budget cuts of up to 70 percent. A program to support tree planting would be sensible, given the multiple benefits of such a program: there is an urgent need for local construction wood (tree poles) and for firewood in rural areas. Increasing the tree cover would also reduce soil erosion, land slides and mud flows in the fragile upper catchments, moderate streamflows and provide habitat for wildlife. 4.19 In addition, support to forest-related activities provides employment opportunities in rural areas which are particularly important at this time when the job situation in agriculture and industry is very uncertain. Tree-planting is labor intensive, as are the collection, processing and marketing of non-wood forest products, particularly fruits, nuts and honey. It is highly desirable to provide short-term financial credit for these kinds of activities, which encourage a sustainable rural economy. 4.20 In the longer run, the Forest Department (which has recently been integrated in the State Commnittee for Environmental Protection) needs to develop a consistent forest policy, combining production withprotection objectives. The present forest policy emphasizes the protective role of forests, National Environment Action Plan: 21 Priorities for Action 1995-97 and most activities -- including the afforestation program -- are focused on this issue. On the other hand, there is an urgent need to meet the growing demand for wood. If this demand is not at least partially met, illegal cutting of trees for firewood and construction will accelerate and further increase the pressure on natural forests. A first step in developing new directions in forestry would be to set up a good data base, providing information on standing stock, growth rates, production and consumption. 4.21 Improved livestock management. To reduce the degradation of pasture land, the numbers of livestock will need to be reduced over the next five years, and an effective landuse planning system based on land capability needs to be developed. Because semi-nomadic grazing is an important part of Kyrgyz history and culture, such a change will be met initially with considerable resistance. Appropriate land tenure is essential: secure grazing rights encourage local enforcement of stocking limits and sustainable management of the grasslands. The information needed to determine carrying capacity is readily available from the Institute of Land Use and Utilization (Geprozem). Introduction of grazing management practices such as no-grazing zones and rotational grazing could be part of such a plan. 4.22 Part of the solution to reduce the number of livestock also lies in changing the flock structure from meat and wool production using ewes and wethers, to a flock oriented toward seasonal prime lamb and higher quality wool production. A growing market for lamb exists in the Middle East and could be further developed. Currently, lamb is being sold to Iranian buyers. Meat products can only be sold on hard currency export markets, however, if industry standards are thoroughly upgraded and enforced. At present, no Kyrgyz enterprise could meet the standards of the European Union or the United States Department of Agriculture. The removal of export taxes and barriers provides one incentive to achieve such standards. Provision of credit to private enterprises for purchase of self-contained mobile abattoirs would further promote industry competitiveness. 4.23 Biodiversity conservation. The country has a high diversity in habitats and species and is of outstanding scenic beauty, particularly the Tien Shan mountains which are second only to the Himalayas. Adventure tourism has great potential, but services and infrastructure are inadequate. Biodiversity conservation is severely constrained by a small and fragmented protected areas network, hunting, poaching and by a general lack of public awareness. 4.24 Low-cost efforts in biodiversity conservation could have important payoffs in the future. This is a good time to prepare a longer-term national biodiversity strategy and secure an enlarged protected area network not only to stop the major loss of habitat and reduction in the number of (endangered) species, but also to improve catchment protection and to attract international tourism which can be an important source of foreign exchange earnings. This is an area suitable for international donor support. 4.25 As part of developing a national biodiversity strategy, the hunting licensing system should be reviewed and hunting areas reduced. The species that are hunted should be re-assessed on the basis of an inventory of hunted species. Over time, a reduction in hunting activity will make rare animals less shy and therefore more accessible to tourists who visit Kyrgyzstan to see its natural beauty. This change will take time, however, as local livestock holders view wild animals such as wild goats or wolves as competing with, or endangering, their herds. If national parks or reserves are to serve their intended purpose, much greater effort will be required to involve local people in park management and decisions affecting their livelihoods. 4.26 Information forfuture decision making. Information on soil erosion and its effects is scattered in different agencies and not readily available for making informed decisions. A coherent policy to deal with land degradation would benefit greatly from a country-wide assessment of the status of watersheds, including the degree of soil erosion and the occurrence of, and susceptibility to, mud flows and land slides. At the same time, a program to monitor river siltation and sedimentation of reservoirs will provide a basis for deciding how to prioritize the erosion problems among different watersheds. National Environment Action Plan: 22 Priorities for Action 1995-97 Health damages 4.27 Low-cost sanitation measures. The major public health problems are indirectly related to environmental causes. The main concerns are waterborne diseases such as Hepatitis A and diarrheal diseases. The main causes in rural areas are related to poor sanitation and open water supplies. There are virtually no public funds budgeted for sanitation, although sanitation is a major public concern. 4.28 Government officials often think of improved sanitation in terms of sewer connections and biological wastewater treatment which are very expensive for individual households and communities. Low-cost alternatives could significantly reduce health risks. Both international and local resources should be applied to install low-cost but effective latrine technologies. In addition, poverty plays a large role in rural health status. Projects which promote the construction of improved latrines with local building materials and local labor will have a three-fold effect -- improving the environment, the health status of the population and the economic condition of the poorest members of society. 4.29 Public awareness campaign. A well-targeted public information campaign and appropriate school curricula emphasizing the virtues of basic sanitation principles and food hygiene are likely to bring about significant human health improvements, especially in rural areas. 4.30 Land use controls. Public health will also be enhanced by ensuring that water supply sources are strictly protected. Land-use restrictions must be strictly enforced around water sources. 4.31 Reducing dust emissions. Air pollution (other than inside homes and factories) affects the health of urban populations in Bishkek and to a smaller extent in Osh, especially during the winter when dust emissions from the major power and heating plants may be trapped near to the ground as a result of atmospheric conditions. The highest priority is to maintain and properly operate existing dust collectors as well as to upgrade equipment where it is needed. Experience in many countries shows that the benefits of controlling dust emissions tend to significantly exceed the costs. 4.32 How critical is the health damage from mine wastes at the three largest combinats? Information on priority areas for cleanup of mine wastes is still inconsistent and incomplete. A number of studies of potential health hazards from mine wastes at Haidarkan, Kadamjai and Orlovsky are underway and should be completed. Until there are reliable health analyses of the rmine waste areas, significant expenditures should be avoided on cleanup or even on (pre)feasibility studies because of the risk of wasting large amounts of money on unnecessary work. Using donor resources more effectively and mobilizing additional extemal resources 4.33 Coordinating actvities. One of the objectives of the NEAP Office is to help coordinate demand and supply of donor assistance. The interests of the various actors are not always congruent, and it is important that the Kyrgyz Government retain oversight and control over the many different activities, and avoid overlap (both in internal requests, and in external commitments). A first step is to prepare a detailed list of donor activities with a particular emphasis on environment-related work (the Box below provides an initial and incomplete listing). This list will only retain its value, however, if it is continuously updated. Over time, the goal is to efficiently extract the maximum benefit from international assistance, to ensure that it dovetails with national programs, and to avoid overlaps and duplication. This is also an opportunity to identify new potential sources of funds, and to prevent scarce grant resources from being used for low-priority activities that are not part of the Action Plan. National Enviromment Action Plan: 23 Priorities for Action 1995-97 Initial Survey of International Assistance Activities for Environment Gennany (German Association for Technical Cooperation, GTZ, and NABU, a Gennan NGO): Proposed the establishment of a Man And Biosphere (MAB) reserve (UNESCO) for the entire catchment of Lake Issyk Kul and the Eastern Tien Shan mountains. NABU is conducting research in the area, financed by GTZ. GTZ is also supporting a pilot program in water quality monitoring in the Chu valley. Japan: Supply of agro-chemicals. The Netherlands: Supply of agro-chemicals and technical assistance for environmental improvements in Bishkek public transport, a coordinated monitoring system, industrial waste minimization, and NG0s. Switzerland: Funds and technical assistance for forestry projects, beginning in 1995. Five projects have been proposed: development of a forest information system; forest management in the (northern) spruce area; forest management and silviculture in the (southern) walnut area; afforestation; and training of technical fotest staff. Switzerland is also providing support for the NEAP Office. United States Agency for International Development (US-AID): Technical assistance support for water resource management. European Union (EU): The EU intends to support environmental institution building. At present, the Union is supporting a pre-feasibility study to review options for cleaning up the Minkush mine site. Asian Development Bank (ADB): ADB is planning to provide assistance for environmental regulatory reform and for setting environmental standards. Additional support would also be provided for capacity developmnent in Goskon;pfiroda. European Bank forReconstruction andDevelopment (EBRD): The EBRD ispreparing aproject tosupport the public and emerging private sectors in developing tourism. The EBRD tourism project has two objectives: (i) to promote the Kyrgyz Republic as an ecotourism destination while assuring their protection; and (ii) to promote local culture and protect the national heritage by reviving and marketing handicrafts. The project will support private enterprise development such as small hotels, rest camps, tour operators, travel agencies, guides, park wardens, and vendors. Global Environment Facility (GEF): Likely to support a regional biodiversity project involving Kyrgyzstan, Kazakhstan, and Uzbekistan. International Atomic Energy Agency IAEA): Interested in supporting monitoring of Uranium tailings. United Nations Development Prgramme (UNDP): UNDP Is likely to help organize a seminar on institutional capacity building for envirommental management. World Bank/IDA: Through its policy lending operations, the World Bank and IDA have been supporting proper pricing of exhaustible resources to promote conservation and reduce environmental degradation. Assistance for the agricultural sector also addresses the issueofland degradation. Sectoral reviews in Mining and Energy have identified environmental concerns and proposed steps to deal with them. The Bank is supporting the preparation of the Kyrgyz NEAP and will work with the Government to determine specific areas of assistance. National Environment Action Plan: 24 Priorities for Action 1995-97 The Aral Sea Program: a Case of Successful Coordination Five riparian states share the Aral Sea Basin, an area of 690O km2. ke They are the Kyrgyz Republic, Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan. The Aral Sea itself lies between szakbstan and Uzbekistan. Two key rivers drain into the sea: the Syr Darya and Amu Darya Rivers; the mo Funtains of Kyrgyzstan are the source of headwaters for both rivers. In 1960, the Aral Sea was the fourth largest lakecin the World. Since then, it has shrunk to half its size because of the near tota}ldiversion of in- flowing water for irrigation. iLavish use of agricultural chemicals has degraded water qWity, and industrial and municipal pollution further aggravates the situation. The fishing industry is destroyed; wetlands are now desert; biodiversity is decimated; and wind blows salts and pesticides from the exposed sea bed over crops and people. According. to a 1992 UNDP study, the destruction of the Aral Sea is one of the most staggering disasters of the twentieth century. In rresponse to the severe environmental crisis in the Aral Sea Basin, the five riparian states are jointly developing a regional strategy to save the Sea. The World Bank, UNDP and UNEP,:inacollaWration with bilateral donors, have responded to requests for assistance with the Aral Sea Program, which has four major objectives: (i) stabilize the environment of the Sea; (ii) rehabilitate the lands around the Sea; (iii) develop joint management of transboundary waters; and (iv) build regional institutions to realize these goals. The first phase of the Program, which is jointly funded by the countries and external donors, focuses on mneeting the inrmediate needs of the region and developing projects which advance the four objectives. In addition, the program will assist the riparian istates in adopting national macroeconomic and sectoral policies which support sustainable land, water and other natural resource development. Phase One has seven programs or areas of focus: 1. Preparation of a regional water resource management strategy; 2. Development of a regional environmental monitoring system4which tracks water availability anid consumption; 3. Reduction of agricultural, industrial and municipal water pollution; 4. Research and selection of engineering options for environmental restoration projects; 5. iDesign and implementation of regional public educatio programs on environment and health; 6. Integrated land and water management in the upper watersheds;; and 7. Institutional capacity building for regional environmental management. . .. Program 6 (integrated upper watershed management) is particularly important to the Kyrgyz Republic, Improved watershed managemnent is a governmental priorty, and specific ns to this end are identified in the National Environmental Action Plan (NEAP). It ist inportant to note that Athe country is neither a major drain nor major polluter of the Mal Sea. In compliance with inter-republic water allocion agreements, Kyrgyzstan uses only about 4 % of the total flow of the Amu Darya and Syr Darya Rivers. It o produc less than one percent of the. cotton and alfalfa (major water consumers) grown in the region. Nevertheless, upstreami activities in the Republic significantly impact environmental conditions and activities downstream. Eroslonrdue to deforestation and overgrazing is severe, altering water regines and degrading water quality. Poorly planned and managed irrigation systems loseIor contaminate many thusands of cuic imeters of water. Mining, industrial and municipal pollution also flows.into the Basin. The intiative taken by the Government: to addre mthese problems through the preparation of the NEAP complements the Aral Sea Program and provides leadeship in the regionon environmental policy. ii. . 0; 0A number of other programs and projects deal with issues identifid in thWe NEAP, such as programs 1l. and 3f.1 on Water Management andVWater Quality Strategies; programs 1.2 aIdS1.3 on Iprvn Efficiency andi Operation of Dams and on SustWinability of Dams and Reservoirs; and program 2.1 on flydromet Services. National Environment Action Plan: 25 Priorities for Action 1995-97 Strengthening the environmental institutions 4.34 The success of the NEAP will depend on the capacity of the environmental institutions to develop and enforce proper environmental regulations. Under the overall responsibility of Goskompriroda a formal coordination mechanism among the agencies with environmental monitoring and control functions should be established at national and at oblast levels. Goskompriroda should develop a realistic and enforceable system of standards and regulations. Since the most important environmental problems are local in nature and environmental priorities vary from oblast to oblast, gradual decentralization of the environmental management should be carried out. In the shot term this process should be initiated with strengthening the oblast branches of Goskompriroda. Over time they should be authorized to develop regional environmnental strategies, set specific targets for environmental improvements and develop compliance schedules for the main polluters. 4.35 A number of activities have been identified as being of high priority to establish a basis for making sound environmental management decisions in the future. These include the following: 4.36 Developing the capability to carry out Environmental Impact Assessment (EIA) according to international standards. International ETA training in combination with a full EIA of the two new gold mines according to international standards should help ensure that new mining activities in particular will meet all necessary environmental requirements. On-the-job training could be carried out in addition to international exchanges. A similar approach could also be applied toward a systematic evaluation of dam safety. In the long run, the capability to carry out sound Environmental Impact Assessments should help prepare for eventual construction of new industries and possible expansion of hydroelectric facilities. These are inexpensive activities which can avoid significant future environmental damage and related economic costs. Training should start now before economic activity picks up. 4.37 Developing the capability to carry out efficiency and environment audits in selected industries and mining enterprises. Again, the most effective approach involves on-the-job training in the highest priority industries that are likely to be restructured, e.g., cement, electroplating, slaughter houses, textiles. This work should help identify low-cost efficiency improvements in the most polluting industries that are likely to continue operating during the next 3-5 years. 4.38 An environmental audit should also be carried out of the Kara-Balta mine to identify options for economically viable mine waste re-utilization and cleanup of mine wastes. 4.39 Reviewing appropriate regulations and proposed measures for dealing with treatment and disposal of hazardous materials from enterprises, including stored banned pesticides. A review of international approaches to setting appropriate and enforceable regulations will help avoid long-term health damages and avoid liability problems in connection with restructuring and privatization of enterprises. 4.40 Strengthening the monitoring system. To assure enforcement of environmental standards and regulations, the monitoring system should be significantly upgraded. Currently existing overlap between in monitoring responsibilities of Goskompriroda, Hydromet, Sanepid and Goskomgeologia should be assessed and steps should be taken to integrate the monitoring system. The Central and five oblast laboratories of Goskompriroda should be sustained and upgraded through provision of analytical chemicals, glassware, spare parts, modem analytical and computer equipment, and vehicles. Retrain laboratory staff in modem analytical and computing techniques. National Environment Action Plan: 26 Priorities for Action 1995-97 4.41 Privatization and the need to clarify environmental liability. The concept of liability is included in all the environmental statutes, including the Law on Environmental Protection, Law on Enterprises, and Law on Peasant Enterprises. The government may sue for monetary compensation for both economic and environmental harm, which occurs on state property, and the revenues used to restore the environment to its original condition. Individuals and enterprises may bear both civil and criminal liability in accordance with the laws on Environmental Protection, Land Reform, Enterprises, Land and Forestry Codes of the Kyrgyz Republic. There is no clarification, however, of how to deal with environmental liability in the process of privatization. 4.42 The success of the government's privatization program imposes a serious burden on the environmental authorities, who have limited experience in dealing with private businesses and are severely constrained in their ability to monitor and control environmental performance. A new system of standards and regulations responsive to a market economy needs to be designed. Experience from other FSU republics shows that new standards are often set at levels that are too high, with little consideration for enforcement capability--this practice should be avoided in the Kyrgyz Republic. The standards and pollution limits should be revised based on projected enforcement costs and benefits, and implemented within a realistic timetable. 4.43 In addition to dealing with present liability, the issue of environmental liability for past pollution needs to be urgently addressed, particularly with the objective of attracting foreign investors. The Kyrgyz Government should select one of the existing options: (i) sell assets at a lower price and transfer full liability to the new owner; (ii) sell assets for a full price and assume liability (setting aside some of the purchase funds for cleanup); or (iii) design a combination of the above options with clear decision rules. B. THE NEAP PROCESS 4.44 The purpose of the Kyrgyz National Environmental Action Plan is to help policy-makers strategically integrate the formulation of environmental policies and regulations with the process of economic transformation -- making environmental consideration an integral part of the overall economic and social development strategy. The tools available to the Kyrgyz Government include: (i) changes in policies and regulations; (ii) improvements in the institutionalframework for environmental management; and (iii) expenditures on projects with environmental benefits. 4.45 There are a number of possible sources of project funding -- both domestic and external. Domestic sources include user fees and fines, public expenditures from the general budget, and private investment; international sources include international financial institutions such as the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, bilateral agencies or non-governmental organizations which provide grants, and private direct investment in areas such as biodiversity-based enterprises or environmental technologies. During the economic transformation and in the context of the severe budgetary constraints, much of the funding for environment may have to come from external sources. Over time, the majority of funding must come from domestic sources. 4.46 The principal objectives of the NEAP process in the Kyrgyz Republic are: * to carry out an assessment of the environmental resources and problems of the Kyrgyz Republic and their potential impacts on the country's economic development; * to discuss the emerging development trends in various sectors of the economy and their environmental consequences; National Environment Action Plan: 27 Priorities for Action 1995-97 * to reach a consensus on the priority areas for funding environmental activities within the budgetary and financial constraints that the Kyrgyz Republic economy is experiencing now and will experience in the near future; * to initiate an evaluation of the institutional capacity for environmental management within the present constraints, and of the policies which affect the use of natural resources; and * to recommend specific macroeconomic, sectoral and project investment actions which address the critical environmental issues identified, and which complement the national development strategy. 4.47 Kyrgyz Government actions. To this end, the Government -- under the leadership of Goskompriroda -- has taken the following steps: (a) A High Level State Committee has been established by means of an Ordinance of the Prime Minister dated May 19, 1994, with the objective of guiding the preparation and implementation of a National Environmental Action Plan (both to be carried out in collaboration with the World Bank). The State Committee is chaired by the Chairman of Goskompriroda and includes the Ministers/Chairmen of the Ministry of Agriculture, Ministry of Water Resources, Ministry of Health, State Committee on Economy, State Committee on Geology, Academy of Science and the Agency of Hydrometereology. (b) A NEAP Expert Working Group has been organized through a special order of the Chairman of the State Committee on Environmental Protection dated June 16, 1994. The Expert Working Group is co-chaired by an official from the State Committee on Environmental Protection and an expert from academia. The Government will expand the Expert Working Group as necessary to carry out the work on the implementation of the NEAP. 4.48 NEAP office. Implementation of the NEAP requires collaboration among many institutions within and outside the Government. In order to facilitate this process, a small NEAP Implementation Office is being established with initial funding from Switzerland and with assistance from the World Bank. Office space is provided by the State Committee for Environmental Protection (Goskompriroda). The NEAP office is responsible for maintaining a library and documentation system, facilitating coordination among the different institutions participating in the implementation of the NEAP, providing status reports on the implementation of the NEAP, updating the inventory of key environmental concerns to ensure that action focuses on current priorities, and disseminating information. Over time the office is expected to assume the functions of a Public Information Center. 4.49 Wide ranging discussions throughout the Government, have led to the following recommendations for action within the next 2-3 years (Tables 1-3). As more and better information on the precise nature and urgency of environmental problems becomes available, these recommendations will be continually updated and/or altered. Table 4 presents technical assistance needs identified by the Bank and the Kyrgyz authorities during the preparation of the NEAP. 28 KYRGYZ REPUBLIC NATIONAL ENVIRONMENTAL ACTION PLAN: PRIORITIES 195-1997 Table 1: Powy Reforms AREA OF CONCERN AND OBJECTIVE OR OUTCOME ACTONS TO BE TAK :EN : RESPONSIBLE INSTIIlJTIONS TlM{NG. RECOMKMEDATION :_::_______::_a:_:__j:: _:_ :_ ::_ : Water resources management Gradually develop effective local Prevent loss of performance or function of facilities Develop and implement a pilot system of MOF with MOWE, State By end 1996 mechanism to mobilize funds for full such as canals, diversion works, water pipes, pumps, local government financing in a selected Committee on Prices and the pilot funancing of operation and maintenance and drinking water treatment works through oblast (Issyk Kul or Osh). oblast authorities (including provision of chemicals) for improved operation and maintenance, water supply, sanitation, and irrigation Gradually introduce user charges for water KJKSNodokanal in the pilot 1996 + facilities. Prevent health damages from dirty drinking water; and municipal services as part of the piloL oblast Increase agricultural productivity; Analyze experience, set up a local MOWE, Oblast authorities, By mid-1997 government ftnancing policy group and KJKSNodokanal Avoid the need for costly repairs in the future; propose a national refonn program. Prevent 'brain drain' from the sector. Reorganize and streamline municipal MOF, MOWE, By end of 1997 infrastructure operation and maintenance Goskomekonomika, oblasts services in the oblast water utilities, authorities Provision of safe drinking water Improve enforcement of land use controls Reduce vulnerability of surface and ground water Develop improved, enforceable standards for GoskomGeol, SANEPID, By end of 1995 in sanitary protection zones for drinking intakes to pollution. drinking water intakes. Goskompriroda, MOWE. water supplies. Promote policies focused on rural Avoid health damages, especially among small Encourage the implementation of pollution MOWE, Goskompriroda, Oblast By end of 1996 development, including on provision of children. prevention incentives, including fees and environmental institutions. safe drinking water and proper sanitation. fines; update the existing fees and fines. Develop a small-scale effective awareness Clearly define sanitary protection zones and Ministry of Agriculture, KSRS, In 1995, 1996 campaign to promote hygiene and the train local authorities in low cost water and Oblast authorities. importance and use of clean water. sanitation measures. Prepare simple teaching material and Sanepid, Goskompriroda, Ministry By end of 1995 encourage schools to promote hygiene. of Education, NGOs Land degradation Promote soil conservation techniques Enhance soil fertility and increase production Provide farner training on specific Ministry of Agriculture, Oblast 1995-1997 + conservation techniques such as mulching, authorities, local farmer Reduce point source pollution by agro- Reduce downstream ecosystem degradation and contour ploughing, strip cropping, reduced associations, leskhozes chemicals and livestock wastes human health hazards tillage, and integrated pest management. 29 AREA OF CONCERN AND OBJECTIVE OR OUTCOME ACllONS TO BE TAKEN RESPONSIBLE INSTITUlTONS TIMING RECOMMENDATION l Land degradation (cont'd) Update legislation and standards goveming Strengthen institutional tools to govern and sanction Provide training to local agro-chemical MOA, Institutes of the National 1995-1997 + the sector agricultural practices distributors or handlers on substitute Academy of Sciences, local technologies such as integrated pest farmer associations. management, and provide education on proper containment and handling of toxics. Support on-going efforts to use composting and vermiculture to recycie existing agricultural wastes into fertilizers. Forestry Lack of management of the Recognize rangeland ecosystems as a major part of Review and revise forest policy and Goskompriroda (the Forest By the end of 1997 forest/rangeland areas as integrated the productive systems under the management of the harmonize forest/grassland production and Department), Biological and productive systems resulting in a conflict Forest Department Develop an integrated program protection objectives Forestry Institutes of the NAS, the of interest between short-term and long- for joint production and conservation activities in NEAP office term needs, and herding versus forestry forests and grasslands. needs. Re-evaluate the local and international rangeland leases, basing future fee-based Goskompriroda, MOA Oblast and By the end of 1995 Conflicting authority over the land Greater leskhoz control over the management of leases on the value of the land to the local local authorities, including compromise the ability maximize either their land, including local capture of the value of the leskhoz for supporting forest and grassland Leskhoz authorities. protection or production functions land for alternative activities. restoration and production activities. Tailor productive uses of the land By the end of 1996 according to the capability of the particular Reversal of land degradation through appropriate Zone fragile lands (particularly Leskhoz Goskompriroda, Geprozem sites to support those uses, including site specific conservation practices lands) according to their capability to Institute, NAS, and Leskhoz managing the numbers and timing of support various activities. authorities. grazing livestock. Legrslation and standards Develop a realistic policy framework for Provide sustainable and enforceable legal framework, Review the existing legal and regulatory Appropriate Parliamentary By end 1995 legislative changes in line with economic adjusted for the Kyrgyz social and political framework (including emission and Commissions; Goskompriroda; reform; set objectives for gradual environment. concentration standards); obtain international NEAP office. replacement of the Soviet laws, standards assistance to review the draft new laws on and regulations. protection of air, water, underground resources, protected areas and biodiversity. Revise the system of pollution standards to Review current practice in FSU countries; Goskompriroda, NEAP office. By end 1995 reflect (i) health risk and assess progress-to-date and lessons learned. (ii) enforceability. Secure technical assistance for the revision Prepare a medium term program for Appropriate Parliamentary By the end of 1995 of laws and standards. legislative changes with emphasis on Commissions, Central enforcement Govemment. 30 AREA OF CONCEN AND OBJECTIVE OR OUTCOME ACTIONS TO BE TAKEN RESPONSIBLE INSTITIMONS TInMIG RECOMMENDATION Legislation and standards (cont'd) Prepare realistic compliance schedules for Review all intemational conventions, signed Ministry of Foreign Affairs, By the end of 1995 all major polluters. and ratified by the FSU, and new Goskompriroda, Office of the intemational initiatives, affecting the Kyrgyz President Republic, and propose program for Kyrgyz action. Develop and implement a pilot program for Goskompriroda, MOWE, MOI, By the end of 1996 enforceable and effective pollution charges MOF. and fees. Establish transparent procedures to assure Goskompriroda, MOWE, MOI, By the end of 1996 proper implementation of licensing MOF procedures, including the involvement of independent auditors and NGOs. Develop an inventory of enterprise Goskompriroda, NEAP office. By end of 1997 environmental passports and permits. Nature Protection and Biodiversity Conservation Review and expand the protected areas Enhance biodiversity conservation (for its own sake Review and expand the protected areas Goskompriroda, Academy of By the end of 1996 network, and coordinate management of and to promote eco-tourism and adventure tourism) network. Science, Oblast authorities. transboundary reserves with neighboring by consolidating the fragmented protected areas republics. network and improving habitat. Participate in the planning and implementation of a regional biodiversity Goskompriroda. 1995 conservation strategy with Kazakhstan and Uzbekistan. Review adequacy of hunting regulations. Goskompriroda By the end of 1995 Initiate a program to raise public awareness. Goskompriroda, Ministry of In 1996-1997 Education, NGOs, Oblast authorities. Hazardous waste management Review appropriate regulations and Avoid long-term health damages; avoid liability Review intemational approaches to setting Goskompriroda, SANEPID, By the end of 1995 proposed measures for dealing with problems in connection with restructuring and appropriate and enforceable regulations. Ministry of Industry, Kyrgyzaltin, treatment and disposal of hazardous privatization of enterprises. enterprises and mines. materials from enterprises, including stored banned pesticides. 31 Table 2: Insttutions and Information AREA OF CONCERN AND OBJECTIVE OR OUTCOME ACTIONS TO BE TAKEN RESPONSIBLE TIMING RECOMMENDATtON INSTITullONS Cross-sectoral coordination of environmental actvities Develop, formalize and strengthen the inter- institutional links among ministries and other Advancement of the environmental Establish an Environmental Policy Council under the National Government, By mid-1995 govemment agencies. management system. Deputy Prime Minister in charge of environment. Goskompriroda. Continue the operation of the NEAP Working Group Goskompriroda; agencies 1995-1997 (with new mandate related to NEAP represented in the Working implementation). Group. Fragmented, overlapping and deteriorating monitoring system Establish an integrated monitoring network, Provide efficient and cost-effective Sustain and upgrade the Central and five oblast Goskompriroda Mid-1996 serving environmental policy and enforcement of monitoring services for decision makers laboratories of Goskompriroda through provision of standards and regulations. and environmental regulators. analytical chemicals, glassware, spare parts, modem analytical and computer equipment, and vehicles. Drinking water: monitor water supply quality at Assure sound data for planning appropriate the tap and in water bodies where there is direct expansion of water supply to vulnerable Retrain laboratory staff in modem analytical and Goskompriroda, Sanepid, 1995-1997 abstraction of drinking water in rural areas. groups (based on information for health computing techniques. Hydromet impacts - incidence of water-bome diseases, increased child morbidity and Collaborate to design cost-effective monitoring Goskompriroda End of 1996 mortality, consistent contamination with system to respond to the particular questions that Hydromet bacteria, nitrates, etc.; flow distribution; need to be answered in order to maintain and/or GoskomGeol water shortages and outages; and upgrade sound water supply systems. Sanepid production in irrigated areas. MOWE Uranium mining: monitor the status of closed uranium mincs and tailings. Avoid risk of major environmental disaster Assess the monitoring needs in different locations Goskompriroda, End of 1995 and minimize health risk. according to the seriousness of the existing and Kyrgyzaltin potential environmental problems and propose GoskomGeol rational monitoring set and sampling. Commission an independent technical appraisal of GOK, 1995- the integrity of uranium sites on water ways; assure Goskompriroda 1997+ proper monitoring of all tailings and closed mines. Kyrgyzaltin 32 0 AREA OF:CONCERN :AND O ::: : IVEEOR OUTCOM E AC NS. TO BEATAKEN RES SIBLE TO BEh l;E N ::OLE REO : ON INSTTrUlIONS Inadequate ecological appraisal procedures Develop capability to carry out Environmental Impact Assessment according to intemational Ensure that new mining activities, Arrange an intemational ELA training program in Kyrgyzaltin, Mid 1995 standards. especially Gold mining, meet all necessary combination with full EIA of two new gold mines Goskompriroda (central and environmental requirements. Prepare EL4s according to intemational standards (provide on-the- oblast administrations) for planned construction of new industries job training in addition to intemational exchanges). and possible expansion of hydroelectric facilities. These are inexpensive activities Carry out ELI involving systematic evaluation of Goskompriroda, Institutions which can avoid significant future dam safety (provide on-the-job training in addition responsible for hydropower Early 1996 environmental damagc and related to intemational exchanges). development, Oblast economic costs. Training should start now administrations) before economic activity picks up. Low efficiency of Resource Use in Industry Develop the capability to carry out efficiency Identify low-cost efficiency improvements Carry out combined audit training and actual Ministry of Industry, End of 1995 and environment audits in selected industries and in the most polluting industries that are environmental audits in the highest priority industries Goskompriroda and mining enterprises. likely to continue operating during the next that are likely to be restructured, e.g., cement, individual industrial plants. 3-5 years. electroplating, slaughter houses, textiles. Identify opportunity for economically viable mine waste re-utilization. Carry out study to identify utilization and cleanup of KyTgyzaltin and Mid 1996 mine wastes at Kara-Balta. Goskompriroda. Hazardous Waste Assess how critical is the potential damage to Cost-effective approach to reducing Complete and extend ongoing studies of potential NAS, Kyrgyzaltin, Sanepid, 1995-1997 health from mine wastes at the three largest potential health damage. health hazards from mine wastes at Haidarkan, Goskomgeol, Hydromet, combinats. Kadamzhai, and Orlovsky Combinats. Goskompriroda Water management and supply Strengthen coordination and information Health and economic impacts used as Test integrated approach to health assessment and MOWE, Goskompriroda, 1995-1997 exchange to improve priority setting, planning primary criteria in planning and priority economic evaluation in planning priority water SANEPID, Goskomgeol, and capital budgeting. setting for water management supply and irrigation infrastructure rehabilitation KJKS, KSRS, programs; introduce modem information Rayon and Oblast authorities management tools to encourage the timely exchange of information. Strengthen water management organizations and More cost-effective public sector Improve the pay and working conditions of public MOF, MOWE, 1995-1997 enhance the technical expertise and effectiveness organizations. sector technical and managerial staff; provide Goskompriroda, SANEPID, of staff. training; introduce modem equipment and tools in Goskomgeol, KJKS, KSRS. offices, laboratories, and field stations. . 33 AREA OF CONCERN AND OBIECTIVE OR OUTCOME ACrIONS TO BE TAKEN RESPONSIBLE TIMING RECOMMENDATION tNSTITUTIONS Prepare guidelines for identification and Both the national govemment and donors Develop, describe, and issue criteria for project Working party from multi- End of 1995 preparation of project proposals for water supply could rapidly support high-priority evaluation and selection, visit project sites, and agency team and sanitation. investments in water supply and sanitation. compile and possibly collect data on which to base the evaluation of subprojects. Develop a standardized and simplified report format for preparation of project feasibility studies. Develop transparent cost-sharing arrangements. Forest Management Strengthen upper catchment land management by Development of sustainable economic Develop a rural credit program designed to Goskompriroda, MOF, 1995-1997+ strengthening the economic base of the activities in fragile watersheds. encourage small natural resource-based enterprises MOA Leskhozes. which promote the resource conservation. Establish an on-going information gathering Provide policy -makers with sufficient Train forestry personnel in torest inventories which Goskompriroda, NAS 1995-1997+ system on forest inventories and health. Expand information to establish long-term forest provide information, standing stock, annual growth, Institutes, this system to include Forest Department management goals and short-term regeneration, and health. Support comprehensive Leskhoz officials rangeland assessments. regulations and permitting parameters. inventories on Forest Department lands. Expand process to include rangeland inventories for the purposes of livestock management and restoration programs. Blodiversity Conservation Initiate a nation-wide biodiversity protection Halt the catastrophic erosion of biological Develop a National Biodiversity Strategy which Goskompriroda, Mid-1996 program. diversity throughout the country by integrates ecosystem preservation with local forestry, NEAP office, developing a program which integrates herding and agricultural activities. Join the Oblast and rayon authorities. biodiversity conservation with economic intemational Biodiversity Convention, and focus activities on the local level. intemational efforts for biodiversity conservation on the local solutions identified in the Kyrgyz Strategy. Environmental Oversight Prepare detailed list of donor activities with Efficiently extract maximum benefit from Establish well-designed computerized data base and Goskompriroda with 1995-1997+ particular emphasis on environment-related work. donor assistance and avoid overlaps, ensure continuous updating. Ministry for Extemal Affairs duplication, and donor support to low- and Ministry of Finance pfiofity activitics. Carry out long-term review of environmental Ensure rational implementation of a long- Prepare list of functions of all the different Goskompriroda with all 1995-1997+ management functions in the Kyrgyz Republic. term sustainable development strategy. environmental institutions in Kyrgyzstan; discuss and affected institutions, clearly define respective responsibilities; restructure especially Oblast Goskompriroda in order to better liaise with other environmental institutions agencies and efficiently carry out high priority tasks of National Environmental Action Plan. Note that this activity does not imply changing the lines of authority in different ministries or committees, nor reductions in staff. These should be longer-term objectives to be implemented gradually after the current NEAP and after a full assessment of the responsibilities of different institutions. 34 Table 3: Targeted Inveshnents PROBLEM LOCAT/ON SOURCE j POSSIBLE ACTIONS Exposure to contaminated Pipe distribution systems in urban Deteriorated distribution MOWE with KJKS/Vodokanal, KSRS; SANEPIDl drinking water and consequent and rural areas; open reservoirs systems and pump stations; Develop prioritized action program and rehabilitate, repair, and replace facilities with highest health damages affecting and other surface water sources in non-functioning and immediate health and economic impact, install modem control and management systems in larger especially poor people. Osh, Dzhalal-Abad, Talas. and unavailable disinfection networks; concurrently train new cadre of local technicians to operate and maintain facilities in rural Chu Oblasts. equipment; ineffective waste areas; update training of local technicians in urban areas. water collection and treatment Proposed projects should demonstrate that they are based on a least cost approach with respect to systems. investment, operation, and maintenance; can be implemented quickly with existing technology and available materials; and are capable of being staged or phased. The size of individual projects would be restricted in order to utilize the limited available funds on the highest priority problems in all Oblasts. Proposed projects should demonstrate that local authorities are committed to a plan and have or are developing the necessary financial mechanisms for gradually moving toward full costs recovery tariffs within a reasonable period of time. Contamination of unprotected Rural settlements in Osh, Dzhalal- Livestock operations; mine MOWE with KSRS, KIKS/Vodokanal: surface water sources and Abad. and industrial tailings; Reconstruct intake works: substitute ground water; extend and repair pipe networks. consequent health damages untreated domestic and affecting especially poor people. industrial liquid wastes. Rural poverty, related in part to Osh, Dzhalal-Abad; Narvn Oblast Scarcity of wood and non- National Government in collaboration with Oblast Governments and Leskhozes: natural resource management wood products (firewood and Provide short-term credit to develop collection, processing and marketing of non-wood forest products, (deforestation and soil erosion in poles); land slides and mud particularly fruits and nuts. upper catchments) flows; siltation of irrigation and hydro power reservoirs. Air pollution Bishkek. District heating and power Power plant, Goskompriroda: plant, primarily using coal Ensure the correct and continuous use of Electro-Static Precipitators to reduce particulate pollution. and mazut. Abbreviations: KJKS: Kyrgyzjilkommunsoyuz MOWE: Ministry of Water Economy KSRS: Kyrgyzselremstroy (responsible for rural piped water supply) SCP: State Committee on Prices 35 Table 4: Proposals for Technical Assistance PROJECT DESCRIPTION COST ESTIMATE I Decentralization of water supply Identify institutional changes required to decentralize decision-making, operations and maintenance to local $150,000 and sanitation services municipalities. Assess various low-cost sewerage schemes. Evaluate the feasibility of private sector involvement in the providing low-cost services in the water supply and sanitation sector. 2 Prefeasibility Study for a Rural Estimate future water needs in rural areas, including social assessment, cost recovery potential, health and $500,000 Water Supply and Sanitation economic analysis. Estimate sanitation needs and develop a joint water supply and sanitation action Project programn with a set of targeted interventions. In addition, sponsor pilot projects to demonstrate appropriate technologies which will be used as a model to develop a rural water supply and sanitation project. 3 Prefeasibility Study for an Urban Conduct water audits and estimate future needs of the water supply and sanitation systems in major urban $280,000 Water Supply and Sanitation centers to establish priority areas of intervention. The study will include the following: estimate Rehabilitation Project unaccounted-for water (UFWs), evaluate existing treatment and distribution facilities, review extent and accuracy of metering, audit financial revenues including collection and billing. The study would result in a priority action program to rehabilitate, repair and replace facilities with the highest immediate health and economic impacts. 4 Environmental Standards and Review the existing legal and regulatory framework to protect air, water and underground resources. $1,000,000 Monitoring Systems Review environmental standards to harmonize them with international standards. Strengthen the monitoring system through support for the Central and oblast laboratories of Goskompriroda. Focus on basic equipment such as analytical chemicals, glassware, spare parts, computers and other instruments, and vehicles. Retrain laboratory staff in modern analytical and computing techniques. 5 Monitoring the interaction of Establish a monitoring system through the local Sanepid stations for combining health parameters with $350,000 public health and water environmental monitoring, and provide analytical equipment to the joint laboratory of Goskompriroda and contamination, particularly in Chui Sanepid Station.. Monitoring should provide data for (i) estimating exposures to chemical and rural areas biological pollution, (ii) providing early prophylactic warning, and (iii) developing protective measures such as sanitary zones around mines. Assistance should fund training, equipment, and information dissemination costs. 6 Risk assessment of mining Conduct an environmental risk assessment of radioactive materials, mercury, antimony and rare earths $400,000 residuals and hazardous waste mobility in mines, tailings and residue dumps. 7 Environmental Audits Train Kyrgyz experts in environmental audit procedures. Carry out comprehensive independent $300,000 environmental audits of five of the most polluting industrial enterprises eligible for funding under the Bank's private enterprise development project. Prepare environmental management action plans for regulatory compliance. 8 Hazardous Waste Management Review appropriate regulations and proposed measures for dealing with treatment and disposal of hazardous $300,000 materials from enterprises, including stored banned pesticides. Review current practice. Prepare an industrial hazardous waste management action plan for the Republic. 36 [ | PROJECT | DESCRIPTION | COST I I | ESTIMATE 9 Pollution Permitting System Develop an improved pollution permitting process to control air and water pollution and hazardous $200,000 industrial waste generated by industrial enterprises. 10 Environmental Impact Develop an improved EIA regulatory and enforcement process for newly proposed operations which is in $200,000 Assessment harmony with international EIA standards. Focus on training environmental agency staff, including on-the- job training assessing existing and proposed gold-mining operations. 11 National Biodiversity Strategy Develop a nation-wide strategy for protecting diverse ecosystems, focussing on reducing habitat S 75,000 encroachment and supporting economic activities that rely on biologically diverse resources. Coordinate with related on-going studies under the Aral Sea Program and in connection with efforts to develop a transboundary biodiversity conservation program. 12 Environmental Education Develop curricula and textbooks for environmental education of children in primary and secondary schools. $100,000 Print and distribute new teaching materials. Train the teachers in subject delivery. PART TWO Background Papers: Setting Priorities in 37 The Environmental Policy Using Health Information 1. SETTING PRIORITIES IN ENVIRONMENTAL POLICY USING HEALTH INFORMATION Kyrgyz Republic - Vital Statistics Total Population (1994): 4,429,905 Urban (approximate): 1,572,056 Suburban and Rural: 2,857,849 Birth Rate: (1992) 29/1000 Death Rate:(1992) 7/1000 Life Expectancy (female) (1992): 72.2 years Life Expectancy (male): (1992) 64.2 years Note: 37% of the population is younger than 15 years old. Sources: Environmental Health Services in Europe, Kyrgyzstan, 28 June - 10 July, 1993; Duchemin,WHO OMS Bureau for Europe, Copenhagen; and Goskomstat. A. BACKGROUND 1.1 Primary health problems. Although current knowledge suggests that the primary human health concerns in the Republic are poverty-related, poverty and the state of the environment are often inseparable. For example, the causal factors of poverty, poor water supply and land degradation are commonly intertwined. Childhood nutrition, hepatitis A (a problem particularly in the south), tuberculosis, maternal and infant morbidity and mortality are the main problems. Inadequate childhood nutrition is poverty-induced, and Hepatitis A and poor maternal and infant health are often related to environmental contaminants to which low-income populations are more likely to be exposed. Table 1-1 illustrates the trends in infant mortality per general disease category. Table 1-1: Infant Mortality Rate per Disease Category 1988 to 1993 _ 1988 1989 1990 1991 19921 1993 Infant Mortality Rate r 36.8 J 32.2 30.0 29.7 31.5 31.9 Disease Category Respiratory 17.9 14.9 13.6 12.3 13.6 14.9 Perinatal 6.2 7.1 7.1 8.0 7.7 8.0 Acute Diarrheal 5.4 3.4 NA 3.0 5.1 4.3 Source: Children and Women in Kyrgystan, Draft Report, UNICEF, 1994. Background Papers: Setting Priorities in 38 The Environmental Policy Using Health Information 1.2 The breakdown of the health care system. The ul infant morbidity went up from 36/1000 in 1991 to 88,1/1000 in 1992. The u14 (children under 14 years) morbidity was 529/1000 in 1993. As a result of UNESCO-led efforts, infant mortality is expected to decrease for children under 1 year (ul) in 1994. The main causes for children's morbility and rnortality are respiratory diseases aggravated by insufficient heat in homes and schools in the winter, and diarrheal diseases caused by poor sanitation and contaminated water supplies. Sanitation is deteriorating in many places: schools which used to have flush toilets (60 students per toilet) have changed to unlined pit latrines (500 students per latrine). Table 1-2 records this decline by infant mortality rate. Infant mortality and morbidity rates are the considered the most sensitive indicators of public health. Table 1-2: Infant Mortality Rate (IMR) by Region (Number of children per 10,000) Regions [ 1983 1984 1985 1986 1987 1988 1989 1990 1991I 1992 I193 Republic 40.1 40.9 41.9 38.2 37.8 36.8 32.2 30.0 29.7 31.5 31.9 City 29.3 29.0 30.0 28.6 31.4 30.5 28.3 27.4 26.8 30.5 35.4 Rural 44.8 46.2 47.2 42.4 40.6 39.6 33.9 31.1 31.0 32.0 30.6 Bishkek 24.8 23.2 27.1 24.2 27.7 28.7 30.8 28.0 27.9 36.5 50.0 Chu 37.4 35.7 34.9 29.1 29.2 25.9 27.0 26.0 25.5 23.0 20.8 Issyk-Kult 38.1 36.2 35.9 30.1 36.3 32.6 28.2 30.5 28.3 28.4 34.3 Naryn 46.6 38.1 42.8 47.5 40 .4 39.2 34.9 28.0 31.2 33.1 38.9 Talas 36.5 45.7 51.0 43.4 37.5 37.7 35.5 29.2 33.2 29.3 33.6 Osh 43.5 48.6 48.4 45.0 44.3 44.1 36.9 34.7 32.3 33.6 31.7 Djala-Abad 42.5 41.3 42.5 38.4 36.9 36.4 28.6 26.2 28.2 32.9 29.0 Source: Children and Women in Kyrgyzstan, Draft Report, UNICEF, 1994, and the NEAP Working Group on Enviromnental Health. 1.3 What is environmental health? Current health policy in the Kyrgyz Republic makes little distinction among different health categories, such as public health, occupational health and environmental health. The organizational and legal system distinguishes between curative and preventive health care only, which are theoretically administered separately at the oblast and rayon level. In fact, they are implemented jointly. In addition, previously existing environmental health departments have been closed due to insufficient funding, and their responsibilities either taken over by other health services, or abandoned. This confusing situation complicates efforts to clarify either public health or environmental policy. It is important to define the differences, however, for both regulatory and organizational reasons. For example, the exposure of workers (including women and children) to occupational hazards associated Background Papers: Setting Priorities in 39 The Environmental Policy Using Health Information with tobacco-growing or mining, or to glues and dyes used in factories, is not an environmental exposure per se but an occupational one--and is better treated as such. Exposure of the general population to hazardous factors in the environment such urban air pollution, contaminated drinking water, or heavy metals mobile beyond industrial sites is an environmental exposure requiring an environmental policy response. Similarly, a separation between public health and environmental health may be made. Outbreaks of measles or tuberculosis, and vaccination programs are typical public health issues, while sanitation (in terms of the proper disposal of human excreta) is both a public health and an environmental health problem. For these reasons, several "environmental health problems" identified by Kyrgyz experts are not included within the NEAP, although they may be of critical significance from a public health perspective. 1.4 One National Environmental Health Plan. Three concurrent initiatives to develop an environmental hea]th policy are presently underway: (1) under the Ministry of Health, an environmental section is being prepared for the joint program called "Healthy Nation" with Emil Shukurov as chairman, (2) a national environmental health program is being prepared as part of the Manas national health policy project, and (3) under the State Committee for the Environment, environmental health policy recommendations will be made as part of the NEAP. Three concurrent but independent efforts are neither efficient nor desirable. There should be only one national environmental health plan. It should combine the specifically environmental health-related recommendations of the "Healthy Nation" and MANAS projects with local Government and NGO initiatives, and be incorporated into the implementation structure of the NEAP. B. ExPosuREs TO Toxics 1.5 Exposure to bacteriologically and virologically contaminated water. The Kyrgyz Republic has an abundant supply of good quality fresh water. Ironically, it is pestered by waterborne diseases, however. Traditionally, the Kyrgyz people drink boiled water in the form of tea. Therefore, drinking water may not be the main source of waterborne diseases. The most areas most infected with OKZ' and Hepatitis-A are the Osh and Djalal-abad oblasts. These oblasts have large irrigated areas. Canals and other open water supplies are contaminated by free-ranging livestock (even in areas around main drinking water supply systems) and incorrect disposal of human excreta. The infection of humans probably takes place predominantly by eating contaminated food, using surface water such as irrigation ditches, for washing and cooking, and by generally poor personal hygiene. Such factors are largely cultural factors. In addition, because of the breakdown of structured institutions, it has become increasingly unclear what the behavioral "do's" and "don't's" are. In areas served by piped water supply, these cultural factors are aggravated by deteriorating conditions in the water treatment plants, including lack of purifying chemicals and spare parts. This lack of decline in standards (particularly since 1992) has reversed a previously observed downward trend in the occurrence of waterborne diseases. The reported occupance in the whole population of Hepatitis-A increased in 1993 from 36/1000 to 44/1000 and of OKZ from 35.7/1000 to 36.9/1000. If these numbers are correct, infant morbidity (ul) must be very high. The data necessary to confirm these figures and conclusions probably exist, but they are not readily available to health and environmental policy-makers. Existing water monitoring programs by Saniped and Kyrgyzjylcommunsoyuz should be upgraded and combined or standardized to obtain better information on the health status of the people. 1/ Identified OKZ is defined as acute enteritis, colitis, gastro-enteritis caused by identified factors (ICD-IX 008;005.0 and 2-4,8). Included are also rotavirus infections belonging to ICD-IX 008. Unidentified OKZ is defined by unidentified gastro intestinal infections and unidentified toxical food infections (ICD-IX 009 and 005.9). Background Papers: Setting Priorities In 40 The Environmental Policy Using Health Information ......00 . .01 g:RecomntIon: Basic Saitatin in Csentral.Asa Ono of the ntsin environmental health problems in the Central Aian republics is e occurrnce of wa6to disease: 6 uc At Hepiadtis A and OKZ. (0K:Z is an m for varous acte identified and - d tdiaril diases.) The main caus¢s in rural areas are poor uiion and open water Supply. Rura ;sanittio d- isvetyi poor ftrough the. Cetral Asian Reublics, and the Kyrgyz Republic is no aee0lon, nlWined pit latrine are stad inl rurlarea and there ar no govenmnt or community bqdVbJor ahitatln tihe lhough saniaion is widely stald 4as a a concern. Public officias are evI;4-t:4y t aaware 4d:ow-cost but CWbeffe inetehn e cause the definition of improved sanitao isgenerally a-sewer connection which is prhibitively xpensive for ithet individual households r 0X; tes. i :ltio, soap -is esive nd basic ysaniaon is appa y not a very high priority among rura households. Because poverty plays large role it rra health status, projects which promote the; conatt_ctlonof iimproved latrineswitlocal building mateis and ocal labor will have a dre-fold E ect-povng the environment, the halth status of the population and the economic condition of the pooswt s of :siocity.0 Th-0 Ibis: t is applicable to nrual areas toughout Central Asia. .. . . .. .. . :: : : : :: 1.6 Exposure to mercury and antimony. There is an underground antimony mine in Kadamzai and a deep shaft mercury mine in Haidarkan, Haidarkan district, Osh Oblast. Both mines are located in the middle of settlements of approximately 12,000 inhabitants, each. There are no sanitary or safety zones separating residential areas from the mines, and monitoring in the housing areas in Haidarkan indicate residents are exposed to mercury vapors in the air. Tables 1-3, 1-4 and 1-5 illustrate air and water contamination in the region. Table 1-6 compares the morbidity rates of the non-mining but exposed population with a control settlement. The morbidity rates in the exposed settlements are extremely high. Table 1-3: Ranges of Mercury Vapor (mg/m3) in the Open Air in Haidarkan With the Number of Times the MAC* Value was Exceeded 1987-1994 Location 1987 j 1988 | 1989 1990 1991 1992-94 Dormitory .017-.056 .01-.023 .0048 .00011 .00035 .00034- (186) (76) (16) (4) .00022 Hotel .017-.032 .018 .03 .0014 .00034 .00032-.0002 (106) (60) (10) (4.6) Kindergarten .016-.034 .015 .0032 .0016 .0016 .00035- (113) (50) (10) (5) .00024 Garage .021 .018 .0038 .0014 .0014 .00034- (70) (60) (12) (4.6) .00023 *Maximal Allowable Concentration: .0003 mg/m3. Source: Sanitary and Epidemniological Station (Sanepid), Kadamzai Laboratory. Background Papers: Setting Priorities in 41 The Envirommental Policy Using Health Information Table 1-4: Antimony concentrations in the Sbaldmardan-Sai River Sampled September 7, 1994 Sample Site |_Antimony (mg/mr3) Bridge at Dzydalik (Karabisky GPR) 0.000 Bridge at Kadamzai (KSK) 0.025 Bridge at Pulgon (CRB) 0.035 Source: Sanitary and Epidemiological Service, Kadamzai Laboratory Table 1-5: Ambient Air Quality in Kadamzai Sampled September 15, 1994 (mg/m3) Site Antimony Sulphur Nitrogen dioxide oxides Workers dormitory .053 .44 .037 Drugstore .074 .48 .035 | Kindergarten .028 .12 .026 Note: MAC values for antimony in the mine interior are 0.5 mg/m3 (peak value) and 0.2 mg/m3 (average value); for sulphur dioxide 0.5 mg/m3 (peak), 0.05 mg/m3 (average); and for nitrogen dioxide 0.085 mg/m3 (peak) and 0.04 mg/m3 (average). Source: Sanitary and Epidemiological Station (Sanepid), Kadamzai Laboratory Background Papers: Setting Priorities In 42 The Environmental Policy Using Health Information Table 1-6: Morbidity Rates in the Haidarkan District (Rates per thousand) Disease Control Settlement Exposed Settlement Exposed Settlement (Utch-Kurgon) (Kadamzai) (Haidarkan) 1992 1993 1992 1993 1992 1993 Respiratory 19.5 17.7 170.5 200.7 130.5 98.6 Bronchial Asthma 1.06 1.37 1.09 1.52 1.38 1.23 Gastro-Intestinal 18.1 23.2 39.9 51.9 39.1 36.7 Urinal and Genital 11.1 7.3 25.5 29.6 13.1 18.8 Skin 13.9 14.0 50.5 41.8 15.6 20.2 Skeletal and Muscles 3.1 2.3 41.4 49.9 40.4 44.6 Congenital 0.35 0.28 1.04 1.16 0.64 0.35 Malformnations Source: Sanitary and Epidemniological Service, Osh Oblast. 1.7 Overall, health experts believe that the non-mining population is exposed to unacceptable risks. It is not clear how reliable the data are, however. If they reflect accurate trends, the ul morbidity rates in these areas can be expected to be much higher than in areas with no exposure. Unfortunately, the intensity of monitoring is unclear. There do not appear to be many sampling points, although Goskompriroda and Sanepid have joint sampling schemes. Furthermore, any hard evidence on dose- response relationships is not available because the actual exposure mechanism is not fully understood. The main exposures appear to be (i) through the soil in the settlement and thus through the crops harvested, (ii) emissions within and from the mining plant itself, and (iii) through mine tailings and other wastes. 1.8 The mercury mining enterprise at Haidarkan mine is expected to close sometime in the future, as one of 29 industrial operations scheduled to be shut down because they are not considered economically viable. The mercury enterprise is already reducing the size of its operation, and the number of miners employed are expected to fall by almost 50 percent within the next few years. The mining company estimates that air and water pollution has decreased accordingly by two thirds, although it is not clear on what basis this conclusion is reached. A production shift from mercury to other heavy metals is planned, however. Soil pollution will remain after mercury mining has stopped. Consequently, a monitoring program is badly needed to determine what practical measures are needed to reduce residents' exposure. It is very possible such a monitoring program may indicate that major measures are needed, such as closing the mine completely, or relocating inhabitants from the contaminated area. 1.9 Exposure to radiation. The nature of the rock substrate in Kyrgystan makes it likely that radon emissions exist in some areas. They may not occur under conditions that would lead to unsafe build-up of particles, however. Tests were performed for radon contamination on 43 samples of water from Background Papers: Senting Priorities in 43 The Environmental Policy Using Health Information artesian wells and from the water supply system in the city of Bishkek. The average Radon concentration was 47/1. The EPA standard is 74/1. Radon levels in the populated areas around the Kazarman and Makmal gold combinat were also estimated. There are no negative findings reported, but the data are not available. Other forms of radiation hazards do exist, however. For example, the Kichi-Kemin area was flooded in 1964 by waters containing radioactive wastes. Radiation levels in populated areas in the Kichi-Kemin area reportedly do not exceed concentration standards, at this time, although again, there are no data available to document this conclusion. Excessive radiation was found, however, in areas where the soil was not properly recultivated and where building materials were used from the former submerged area. Mortality has reportedly risen since the flood, but there are no figures available. Generally, due to the lack of monitoring, there is no conclusive evidence of health damage from radiation. There is sufficient evidence, however, of the need for a general health-oriented monitoring program for radiation. C. INFORMATION MANAGEMENT 1.10 Data quality and availability. Reliable data on infant morbidity and mortality are assembled in a computerized database called ASU (Avtomaticheskaya Systema Upravleniya) by the Institute of Obstetrics and Pediatrics. This database does not contain environmental parameters. The main source of health information is the yearly report compiled by the Republican medical information center (200 copies/year). These data are partly computerized and their reliability is assumed. The computer information center of the Ministry of Health has developed a program for computerizing the public health care system primarily for purposes of the medical insurance system, which is implemented in Karakol, Issyk-Kul Oblast. This database covers all aspects of national health care--only part is relevant for environmental health, and only a very small part is devoted to water quality monitoring. 1.11 Necessary health data for a NEAP. Ideally, a NEAP database would be able to relate health data with environmental data on a national basis. Such a database does not exist anywhere in the world, however. Existing initiatives could be combined, however, focussing on groups most at risk, and relating environmental exposures and pertinent diseases. Examples of this kind of database are: * A database that can relate rural water quality/supply, child health, and the occurrence of waterborne diseases and provide information for setting priorities for rural water supply and santitation; * A database which can relate exposure to contaminants with population morbidity, mortality and related parameters such as the birthweight of infants and the health of young women in mining areas such as the Haidarkan district; and/or * A database that can relate exposure to pollutants with population morbidity and mortality and related parameters in rural pesticide-intensive cultivated areas, such as the Suzak rayon in Osh oblast or the Chu valley. Studies have been ongoing on all of these issues; however, research efforts are virtually halted due to lack of funds. A follow-up study on any of these subjects by the Institute of Ecology, for instance, would be very cost-effective, and yield invaluable information. 1.12 Data generation. The existing mechanisms for monitoring of health and environmental quality and data generation roughly follow the standards of the old Soviet sanitary surveillance system. This system, although ostensibly complete, is very difficult to implement. Data generation in the Krygyz Background Papers: Setting Priorities in 44 The Environmental Policy Using Health Information Republic is therefore incomplete and inconsistent. For example, sampling schemes are not kept, registration is not uniform, data are on handwritten forms and not computerized, data are not verified either in content or form, and there exist large differences in implementation between rural areas and the cities. Compounding the problem, laboratory testing equipment (for blood and urine, or water quality) is old, or out-of-date, and frequently has not been maintained. There are no datacommunication procedures to speak of apart from the handwritten forms. D. CAPACITY BUILDING AND INSTTrUTIONAL STRENGTHENING 1.13 Information sharing. The Ministry of Health shares information and data with Goskompriroda on an informal and irregular basis. The rayon Sanepid stations do not formally share information with the various rayon water authorities, the oblast Sanepid stations do not formally share information to the oblast water authorities, and so on up to the national level. The reasons are various: sheer lack of paper and bad telephone lines; the lack of opportunities in the past to experience the usefulness of information- sharing; and--most importantly--the vertical organization of information flow which results in the dilution of data which must travel from settlements upwards through rayon and oblast to the national level. At each level, data selection and aggregation introduce distortions and make it increasingly difficult to match one environmental data source with other sources from other regions or agencies. 1.14 Epidemiological Monitoring. Epidemiological monitoring efforts nationwide are not uniform, not computerized, and not directed toward extracting environmentally-related epidemiological data. There is a great need for environmental epidemiological training on oblast and rayon level. Monitoring equipment, computer equipment and communications equipment are needed on all levels. The monitoring schemes of Sanepid, Goskompriroda and Kyrgyzjylcommunsoyuz should be revised and coordinated, so that their databases complement each other and may be compared and combined. Simple, up-to-date monitoring protocols are needed. Background Papers: Water Resource 45 Management in the Kyrgyz Republic 2. WATER RESOURCE MANAGEMENT IN THE KYRGYZ REPUBLIC' A. GENERAL OvERVIEW 2.1 The water resources of the Kyrgyz Republic are key to the economies of the four other states in Central Asia. The Republic is endowed with abundant surface water and groundwater resources-it has extensive reserves held in lakes, permanent snowfields and glaciers. There are more than 3500 rivers in the Republic itself, flowing into basins within the country or downstream through Kazakhstan, Uzbekistan, Tadzhikistan, Turkmenistan, and the Xinjiang province of China. The largest river is the Naryn. Other rivers longer than 200 km include the Kara-Darya, Chu, Talas, Sary-Dzahz and Kyzyl Suu. The headwaters of the Syr-Darya and Amu-Darya Rivers, which flow into the Aral Sea, are generated in the mountains of the Republic, as well. 2.2 River flows originate in 85 percent of the Republic's area. The remaining 15 percent of the area does not generate flows; on the contrary, rivers lose water in these areas, either through recharging natural aquifers, or being diverted for irrigation. Areas with a net river water loss include the foothills and alluvial areas of the Chu Valley, the periphery of the Fergana Valley, plains around lakes--especially Lake Issyk-Kul, and the foothills and alluvial plains of other mountain valleys. 2.3 Of the 44.5 km3 average annual flow, 11.6 km3 were endowed to the Kyrgyz Republic for its own use by the former Soviet Union. Current inter-republic agreements continue the division of water- rights, with the Kyrgyz Republic permitted to use about 24 percent of the flow. Irrigation uses both surface water and groundwater, while domestic and industrial water supply is largely based on groundwater. The Principal River Basins of Kyrgyzstan 2.4 The largest river basins in the Kyrgyz Republic are the Amu-Darya, Syr Darya, Chu, Talas, and the Sary-Djaz. Table 2-1 summarizes the basic features of the main river basins of the country and their estimated total water resources. The distribution of water resources unfortunately does not correspond to the distribution of major water users--population, agriculture and industry--especially in the basins of such rivers as Sary-Djaz, Aksai, Naryn and its tributaries. 2.5 The two major tributaries of the Syr Darya River in Kyrgyzstan are the Naryn and the Kara Darya Rivers, which are the largest rivers in the Republic. The Naryn watershed area is 59.11 thousand km2 or about 30 percent of the area of the Republic. The average annual flow of the river is 13.7 kIn3, about 31 percent of the total water volume of the country. Flow is regulated by the cascade of reservoirs (of which the largest is the Toktogul reservoir with a capacity of 19.5 kma3 ) that are the country's most important source of hydro-electric power. The second largest river in Kyrgyzstan is the river Kara Darya. The watershed area is 31.65 thousand km2 and the average annual flow is 4.35 km3. The river is regulated by the Andijan reservoir with a volume of 1.75 kmn3. I/ This background paper was prepared by Tony Garvey and Vladimir Tsirkunov of the World Bank on behalf of the following agencies who wrote basis reports on water management and water supply for the NEAP Working Group: Ministry of Water Economy; Sanepid; State Committee on Geology - Hydrogeological Expedition; Hydromet; Bishkek vodokanal; Kyrgyzjilkommunsoyuz; Kyrgyzselremstroy; Goskomstat; Goskompriroda; and Environment Committees in Issyk-Kul, Talas, and Chu Oblasts. Background Papers: Water Resource 46 Management In the Kyrgyz Republic 2.6 The basin of the Chu river occupies the largest part of the northern section of the Republic. Major urban and industrial centers are located in this basin, and it is one of the most important irrigated areas. The Chu also forms the border between Kyrgyzstan and Republic of Kazakhstan for 221 km of its 336 km length in Kyrgyzstan. The watershed of the Chu River is 38.4 thousand km2 half of which is located in Kazakhstan. The upper part of the river is regulated by the Orto-Tokoy reservoir with a volume of 0.47 km3. The Talas River watershed is much smaller than the Chu, 7,640 km2, but its higher water yield has allowed significant irrigation development. The river is impounded by the Kirov reservoir with a volume of 0.55 kn3. Table 2-1: The Annual Pattern of Surface Water Availability River Flow (kn3/yr) River Basin Oblast(s) Watershed area Average Estimated Low Flows (1031km) Year 75 percent j 95 percent Chu Chuisk 14.154 3.729 3.397 2.99 Talas Talas 7.64 1.35 1.184 1.0 Assy Issyk-Kul 0.454 0.188 0.168 0.143 Syr Darya Osh, Dzhalal-Abad, Naryn 99.458 27.424 22.818 18.454 Amu Darya Osh 7.7 1.252 1.1 0.927 Issyk-Kul Lake Issyk-Kul 15.738 3.332 3.002 2.617 Ili Issyk-kul 0.997 0.363 0.306 0.243 Tarim Issyk-Kul 22.65 6.15 4.865 3.554 TOTAL 168.791 44.463 37.53 30.621 2.7 The basin of Issyk-Kul Lake, the largest in Kyrgyzstan and notable for its high recreational value and its exceptional clarity, has no outlet and lies in the north-eastern part of the Republic. More than 80 small rivers from the slopes of the Terskey and Kungey-Alatoo ranges flow into the lake. The total watershed area of the lake basin is 15,738 km2. 2.8 Surface water availability in the major river and lake basins of Kyrgyzstan is sununarized in the Table below. In addition to the average annual volume, estimates of the reliability of different levels of annual flow are also given, including the flow expected to be equaled or exceeded in 3 out of 4 years (75 percent), and the flow that is expected to be equaled or exceeded in 95 percent of the time over a long period of years. Background Papers: Water Resource 47 Management in the Kyrgyz Republic The Distinctive Seasonal Patterns of Streamflow 2.9 The primary source of moisture in Kyryzstan is snowfall on the high mountain slopes which are covered in part by permanent snowfields and glaciers. Streamflow and ground water recharge originates mainly from melting snow and glacial ice. This results in three major periods of streamflow depending on elevation, the local dynamics of snow and glacier melting, and the varying rate of ground water discharge over time: (i) A period of high flow due to seasonal snow melting from mountain slopes of low and average elevations. (ii) A period of high flow due to snow and glacier melting at higher elevations. (iii) A low flow period when rivers are fed by ground waters. 2.10 This regime is typical of Central Asian watersheds, and has been classified into four distinct types by Schultz as outlined in Table 2-2 below according to the ratio of the summer and spring flows, the proportion of annual flow that occurs the summer, and the length of the peak flow period. Table 2-2: Seasonal Patterns of Streamflow Type of River July to September vs. Flow July to September | Months with the I March to June Flow Ratio (percent of annual) maximum flow Rivers fed by glaciers 10 38 July - August and snow Rivers fed by snow and 0.99 - 0.27 40 - 17 June - July glaciers l Rivers fed by snow 0.27 - 0.18 16 - 12 April - May Rivers fed by snow and 0.17 - 0.00 13 - 00 March - April - rains May 2.11 Rivers fed by glaciers and snow where the primary source is from melting glacial ice. These rivers drain the highest elevations (including the upper watersheds of the Naryn, Kyzul-Su, and Tarim Rivers, and a number of small rivers or streams, such as the Almedin, Alaarcha, Dzhuuky, Ton, Dzheti- Oguz, and others). Floods in these rivers usually begin in the second half of April, sometimes in May, and end in October. The peak of flooding and highest water discharges are observed mostly in July and August. The duration of the high flow is 170-180 days. The water flow during this period accounts for 80-90 percent of the annual volume. 2.12 Rivers fed by snow and glaciers also drain high altitude sections of watersheds, but the ratio of glacier waters is considerably less than for the previous group. The high water period for these rivers lasts from March or April until September, rarely to October, and varies from 140 to 200 days. The maximum discharges are observed in June. Rivers of this type are located in the basins of Naryn, Chu, and Talas. Background Papers: Water Resource 48 Management in the Kyrgyz Republic 2.13 Rivers fed only by snow have limited distribution in Kyrgyzstan. The average estimated height of their watersheds is 1600-2800 meters (Kugart, Zarger, Donguztau, and Yassy Rivers). The high water period for these rivers begins in March and usually ends in August, while the maximum discharges are observed in May. The total duration of the high water period is from 140-180 days, with the flow for this period comprising 60-85 percent of the annual volume. 2.14 Rivers fed by snow and rain are very uncommon in Kyrgyzstan, the Kurshab River being the only significant example. The high flow period starts in February or March and ends in July or August, or sometimes as early as May. Lakes and wetlands 2.15 There are approximately 2000 lakes with a total surface area of about 7000 km2. The lakes are primarily located in basins of tectonic origin, in the highland area between 3,000 and 4,000 meters. The largest are Issyk-Kul, Son-Kul and Chatyr-Kul. Characteristics of the most important lakes and reservoirs are presented in Tables 2-3a and 2-3b. Note that the total storage, excluding Lake Issyk-Kul, is only 10 percent of the total runoff, which means that lakes have only a slight influence on redistributing flows over the year. Wetlands occur in alluvial valleys of many rivers and along the borders of Lake Issyk- Kul. The total area, however, is only 0.5 percent of the territory of the Republic. Monitoring Surface Water 2.16 Routine monitoring of ambient surface water quality and quantity is carried out by the Kyrgyz Hydrometeorological Agency (Hydromet). The Agency runs a network of fixed monitoring sites located in all major river basins. In 1991, Hydromet made regular water quality observations at 83 cross-sections on 47 rivers, 49 locations on 4 reservoirs, and 45 locations on Issyk-Kul Lake. Samples taken from the water bodies were delivered by cars or by regular mail to two Hydromet chemical laboratories located in Bishkek and Osh. Laboratories are equipped with outdated wet chemistry analysis apparatus and apply techniques that were standard for the whole FSU. This network provides data on basic parameters (oxygen, pH, odor, color, turbidity, etc.), major ions, organic substances (COD, BOD5), nutrients, some heavy metals (Cu, Zn) and pollutants (oil and grease, surfactants, phenols, DDT, lindane, etc.). The results of monitoring are published in an annual Hydromet Report on water quality conditions where concentrations of measured substances are compared with existing maximum allowable concentrations (MACs) and data for the previous year. 2.17 Surface water quality monitoring in the zones of direct impact from pollution discharges (usually 500 m downstream of the discharge) is the responsibility of the water discharger or polluter. Usually the number of monitored parameters is limited. No quality assurance/quality control procedures are applied to check their monitoring performance. The results of self-monitoring are periodically (e.g. once in a quarter or year) checked by the central inspection laboratories of the State Committee for Environment Protection. 2.18 At present Hydromet monitoring is still in relative good order, however, that is not expected to last very long. During the last few years, monitoring capacity has dramatically deteriorated due to a sharp decrease in financing (comparative financing figures). Seven stations have been closed, and in 1994, 20 stations were partially destroyed. Regular station inspection has also been stopped because of transport problems (the seven available cars are very old). Lack of basic chemicals, spare parts, glassware, supplies, lack of cars and gasoline, etc. also contributed to the deteriorating quality of results. Background Papers: Water Resource 49 Management in the Kyrgyz Republic Table 2-3a: Major Lakes and Other Natural Water Bodies1 No. | Name | Altitude River Basin I CA Area, Lake Area | Volue Comment I I (m) || (I.10) | (n') I I Issyk-Kul 1606 Issyk-Kul 22080 6236 1738000 Saline 2 Sonk Kul 3013 Naryn 1120 270 2640 3 Chatyr Kul 3530 Naryn 1050 154 610 Saline 4 Aj-Kul 2937 Aksuu 30 1 57 5 Kara-Toko 2876 Chatkal 42 1.1 49 6 Sary Chelek 1873 Naryn 91 4.9 483 7 Kara-Suu 2022 Naryn 171 4.2 223 Saline 8 Kalkatach 2303 Naryn 99 1 21 9 Kullun 2856 Kara Darya 144 3.3 118 10 Tash-Bulak* 3540 Naryn 10 2.5 13 II Cheul-Ukuk 3048 Chui 66 1.6 34 12 Cheul-Suu* 3514 Ak Sail 488 4.5 338 13 Sarie-Chul* 3477 Naiyn 12 1.2 20 14 Okoaju-Chul* 3628 Naryn 54 1.2 6 15 Kask-Suu* 3882 Naryn 20 1 48 16 Djaul-Chul* 3770 Naryn 20 1 5 17 Suungkorchuck* 3766 Naryn 31 1.5 8 18 Ala-Chul 3532 Issyk-Kul 12 1.3 43 19 Mertbachir 3304 Sary Dzhaz 318 4.5 129 20 Besh-Tash 2994 Talas 54 0.54 6 21 Kalaa-Chul 1847 Naryn 90 0.3 2.7 22 Chul-Tur 2725 Chui 256 0.2 1.8 Total volume without Issyk-Kul 4855.5 = 4.8 km' 1/ Data from ATLAS, Kyrgyzstan (Moscow, 1987) and local expert. Background Papers: Water Resource 50 Management in the Kyrgyz Republic Table 2-3b: Reservoirs' No. Name | Year Built | River Basin | Vol. Area Dam He4bt I I I I I _ _ _ 103_ _ (11mn) (m) I Tjurtkul 1971 Isafa 90 6.6 34 2 Naifnan 1966 Charsai 40 3.2 40.5 3 Basar Korgon 1962 Kara-Unkyur 30 2.8 25 4 Sokulluk 1968 Sokulluk 11.5 1.8 28 S Ala-Archa 1966 Ala-Archa 39 5.2 22 6 Orto Tokoi 1956 Chui 470 25 52 7 Toktogul 1974 Naryn 19500 284 215 | 8 Kirov 1975 Talas 550 26.5 83.7 | 9 Kocksai 1981 Naryn 370 12.0 110 10 Papan 1981 Ak-Buura 260 7.1 120 II Andizhan 1978 Kara-Darya 1750 - - 12 Uch-Kurgon 1964 Naryn 52.5 4.0 31 12 a Tashkumyr Naryn 250 Planned or under construction in 19852 13 Kambar-Ata - Naryn 8500 89.5 295 14 Sokh | Sokh 250 | | 15 Churjart - Chuijart 95 5.0 20 16 Arawan - Arawan 100 4.0 90 17 Chat-Barn - Talas 100 5.3 45 Total capacity (present and planned) 32,458 = 32.46 kmn I/ Data from ATLAS, Kyrgyzstan (Moscow, 1987) and local expert. 2/ Latest year of available data. Background Papers: Water Resource 51 Management In the Kyrgyz Republic B. OCCURRENCE AND CHARACTERISTICS OF GROUNDWATER Ground Water Availability 2.19 Groundwater aquifers occur in tertiary and older sedimentary rocks and in quaternary alluvial areas. Aquifers are recharged both by precipitation and river water infiltration. Infiltration from irrigation canals and irrigated areas also occurs. The main source of water is, however, river water. This means that groundwater cannot be considered an independent source of water. The alluvial and piedmont areas of inter-mountain valleys are where most of the exploitable groundwater is found--in the Chu, Issyk-Kul and Talas valleys. Of practical interest are also the Naryn and Fergana valleys. The latter border Uzbekistan. 2.20 Ground water is widespread in Kyrgyzstan and is generally of high quality and suitable for all uses. The most important and abundant ground water resources occur mainly in the inter-mountain valleys in alluvial and glacio-fluvial deposits, sedimentary rocks of quaternary age, and in the piedmont and alluvial cones that form the lower slopes of the mountains. Water bearing aquifers can reach depths of 300 meters or more in thickness with transmissivities ranging from 5 to 50 m/day. The Table below summarizes current estimates of ground water availability and proven reserves. 2.21 While the total estimated fresh ground water resources are about 30 million m3/day, proven reserves in the 42 deposits that have been explored in detail total about 10 million m3/day (Table 24). As of mid-1994, about 5,900 wells have been developed in these aquifers for domestic, industrial, and agricultural water supply. The average depth of these wells is about 150 meters and the average discharge is about 15 per second or 2.8 km3. This means that only a quarter of the groundwater is used. Half of this water is used for irrigation and the other half for domestic and industrial purposes. The Vodokanals organize the exploitation and observation for quality of groundwater, as well as the Agricultural Water Supply Service, the Kyrgyz Hydrogeological Expedition, and separate enterprises. Table 24: Ground Water Reserves Name of Oblast Estimated Reserves No. of deposits with Confirmed No. Of (m3/day) estimated reserves reserves (m3/day) existing wells Chuisk 7648 13 5553 2207 Talas 2250 4 306 245 Issyk-Kul 5803 7 2083 1078 Naryn 9154 3 41 459 Osh 2595 13 1131 1105 Djalal-Abad 1898 2 1175 806 TOTAL 29348 10289 5900 Monitoring and Management of Ground Water Resources 2.22 Systematic exploration, investigation, and monitoring of ground water in Kyrgyzstan is carried out by the State Committee for Geology, Hydro-geological Expedition. This organization is instrumental Background Papers: Water Resource 52 Management in the Kyrgyz Republic in issuing water permits and advises other state institutions on aquifer protection. Applications to utilize ground water must first be approved by the Expedition and applicants will receive a "water well passport" before the Ministry of Water Economy will grant a permit. In addition to exploration, mapping, and testing of aquifers, the Expedition operates a network of 800 observation points (wells, springs, holes) of which only about 75 percent are presently operating because of loss of staff, lack of budget, and lack of spare parts. The Ministry of Water Economy also operates a network of observation wells, concentrated in irrigated areas. A number of these wells are no longer operable or active. 2.23 Ground water pollution is generally the result of worsening environmental conditions on the land caused by economic and other human activities, although some hydro-chemical changes such as increased salinity can be caused by geologic deposits along the flow path of ground water (highly mineralized water may also exist in the deeper, older parts of an aquifer). With the possible exception of the aquifers presently serving Bishkek, the volume of ground water available to meet current and future needs is adequate. Similarly, the quality of the water for all purposes including drinking is excellent, but monitoring of ground water quality is showing some disturbing trends. Long term observations of ground water quality in Kyrgyzstan shows an increasing nitrate content, mineralization, and hardness. C. WATER RESOURCES DEVELOPMENT AND USE Water Use 2.24 Inter-governmental agreements among the five Central Asian States on the sharing of surface and ground waters restrict the volume of river flow available to the Republic to 24 percent of the average annual flow of 46.8 kin3, or 11.6 Ian3. Water is divided in the Republic among domestic, industrial and agriculture uses. Crop irrigation consumes the bulk of the water. Table 2-5 below summarizes total estimated water requirements based on commonly used norms applied to current conditions in each major sector in Kyrgyzstan in an average water year. Actual water use in 1992 and 1993 in each of the major river basins is summarized in Table 2-6. Actual use is about I kmn3 below the estimated total requirement, but within the allotted volume of 11.6 kM3. The largest proportion (45 percent) of the allotted 11.6 km3, is consumed in areas draining into the Aral sea basin: the Naryn, Chatkal and Kara- Darya and Kyzyl Suu. Other drainage basins are the Chu (4.5 percent), Lake Issyk-Kul (11.3 percent), Talas and Assa (3.2 percent). The remaining six percent drains into Kazakhstan and China. Table 2-5: Estimated Water Requirements by Sector Use Estimated Volume of Water Use Percent of (million in3) Total Agriculture, including 11,332 90 Irrigation 11.239 89 Domestic and Communal 413 3 Industry 857 7 Others 52 <1 TOTAL 12,654 100 53 Table 2-6: Actual water use by major water users in 1992-93 (millions of m3)) Municipal services Industry Agriculture Other Total Including River basin Years including including total including sectors ground total total energy irrigation waters urban j rural production I Amudaria 1992 0.4 0.4 80.5 74.0 80.9 0.1 1993 - - - - - 87 85 - 87 2 | Syrdaria 1992 83.3 20.3 63 252.6 41.2 4,739.7 4,670.9 56.6 5,132.2 514.2 1993 98 33 65 236 38 4,684 4,570 53 5,071 454 Talas 1992 10.1 2.1 8.0 10.9 - 859.9 852 16.1 897.0 22.6 1993 10.0 2.0 8.0 11 - 933 915 5 959 15 Assa 1992 - - - - - 113.7 112.2 0.2 113.9 1.5 1993 1 - 1 - - 98 97 - 99 1 Chu 1992 224.4 171.42 253 818.2 477.7 2,987.1 2,925.7 18.7 4,048.4 319.0 1993 274 21 53 601 320 2,781 3,072 17 3,964 325 | Issyk-Kul 1992 36.5 24.8 11.7 14.3 - 1,346.3 1,315 8.5 1,405.6 76.8 Lake 1993 31 21 10 14 - 1,245 1,224 9 1,299 62 Kyrgyz 1992 354.7 218.6 135.7 1,098 518.9' 10,127.2 9,886.8 100.1 11,678 934.2 Republic: total 1993 414 277 137 62 358' 10,119 9,671 84 11,479 859 Comment: Volume of consumptive use in energy production accounts for 5.2%. Background Papers: Water Resource 54 Management in the Kyrgyz Republic 2.25 Irrigated agriculture consumes about 89 percent of the total water used. (Domestic and industrial consumers use only about 10 percent of the water). Table 2-7 summarizes land use in each of the major river basins. When these data are combined with the corresponding water-use data in Table 8, it is apparent that there is a wide variation in water use for irrigation, ranging from a low of 3,805 m3/ha in the Chu River basin to a high of 11,212 m3/ha in the Syr Darya River basin. For the country as a whole, average water use in irrigation on the 1,077,000 ha of irrigated land is 8,978 m3/ha. Water Balance on the Major Rivers 2.26 Table 2-8 outlines the estimated water balance on each of the major rivers. Available water supply appears to be completely utilized except in the Amu Darya River Basin. The Chu basin is the only basin for which measured outflow data is available to check the water balance, however. For the four major river basins shared with the neighboring central Asian Republics (which excludes Issyk-Kul), the total net water use in Kyrgyzstan is estimated to be 12,720 million m3 out of a total water availability of 43,046 million i3. This is just under 30 percent of the total water resources available and a little more than the amount allowed under the current water-sharing agreements. 2.27 Table 2-8 on water balances shows that under the existing agreements on water-sharing, there are very limited additional water resources in the Republic for new uses such as expanding irrigation. Water availability may be below existing estimated requirements in some sub-basins where storage and regulating capacity is also limited, particularly near the end of the irrigation season. These water balances, together with the figures on estimated and actual water use, deserve careful scrutiny, however. There may be numerous opportunities for low- or modest-cost improvements in efficiency and water conservation. This potential is evident from a cursory inspection of water distribution in the larger cities, and in the major irrigated areas of the Chu and Syr Darya River basin. In these areas, basic improvements in irrigation and potable water distribution infrastructure, water control, and water-use practices may result in major water conservation benefits. 2.28 The development of additional water resources through savings or greater efficiency should focus on improvements in irrigation water use, as domestic, communal, and industrial usages combined are only 10 percent of the total water use in the Republic. Investment in additional and new sources of water supply for these latter uses should be made only after water wastage and inefficiencies in these sectors are eliminated as well, however. This conservation approach will quickly prove less costly than developing additional sources which appear not to be available. It should be noted that although per capita water use may be quite low in areas where street and yard standpipes are the predominant mode of water service, there could still be substantial waste where fittings and fixtures are in poor condition, and water leaks or is allowed to run continuously. Background Papers: Water Resource 55 Management In the Kyrgyz Republic Table 2-7: Land categories in the Kyrgyz niver basins (thousand hectares) Including _ _ __ River Basin Total land area Agri- Including Forests Other cultuaral aMd lands Larnds Arable Multi Hay Rangelarnd Backyards bushes year Growing vegetation Amudaria total land 775.0 360.9 23.5 17.2 319.2 1.0 1.5 412.6 irrigated 22.6 22.3 19.2 - 0.8 1.3 1.0 0.3 - Syrdaria total land 11,184.6 6,101.6 536.4 24.1 133.7 5,341.3 64.1 875.5 4,207.5 irrigated 407.6 402.0 297.3 23.9 3.6 28.2 49.0 5.6 - Chu total land 3,161.9 2,269.9 454.4 13.1 24.4 1,746.3 31.7 105.0 787.0 irrigated 371.0 356.7 308.7 12.7 - 7.9 27.4 14.3 - Talu and Assa total land 1,444.4 868.8 121.7 2.1 2.6 730.7 11.7 69.3 506.3 irrigated 115.0 108.6 90.3 2.1 1.0 4.9 10.3 6.4 - Issyk-Kul Lake total lnd 3,700.3 1,330.5 185.4 4.9 10.4 1,113.3 16.S 124.7 2,245.1 irrigated 161.0 158.1 133.9 4.6 0.9 5.0 13.7 2.9 - Kyrgyz Republic: total total land 20,266.2 10,931.7 1,323.4 44.2 188.3 9,250.8 125.0 1,176.0 8,158.5 irrigated 1,077.2 1,647.7 649.4 43.4 6.3 47.3 101.4 29.5 - =. ~ = = . = = Background Papers: Water Resource 56 Management In the Kyrgyz Republic Table 2-8: Water management balance for major basins in Kyrgyz Republic (for a normal hydrological year) l ______________ Actual balance for 1992 (million/m3) Item I Amudaria T Talas and Issyk-Kul Syrdaria Chu Assa Lake 1. Availability 1.1 Natural river flow' 1,929 1,626.3 3,559 30,918.4 3,708.3 (long-term average) (1,930) (1,551) (3,740) (27,425) (3,525) 1.2 Water diversion (discharge to water 236.6 791 533.1 935.0 bodies), return flow 1.3 Release from reservoirs - - 2,722.0 430.2 1.4 Precipitation to lake or reservoir surface 3.9 2,090 - 3.5 1.5 Ground water inflow - 130 - Total 1,929 1,866.8 6,570 34,173.5 5,077.0 H. Withdrawal 2.1 Ground water extraction decreasing river 0.1 12 39 229.2 133.4 flow 2.2 Water withdrawal from surface bodies (to 80.4 974.9 1,315 4,459.2 3,390.5 be used in Kyrghyzstan) (4202) (9502) (1,5002) (4,3802) (3,850) 2.3 Filling of reservoirs - - 2,567.0 445.7 2.4 Evaporation from lake or reservoirs surface - - 4,420 2.5 'Sanitary' discharge 428.9 268.1 - 4,110 920.0 2.6 Water trnsfer to other Republics - - - 274.8 152.4 Total 509.4 1,255 5,774 11,640.2 5,042.0 111. Balance 3.1 Calculated net outflow 1,848.5 879.9 - 26,643.3 955.0 (measured net outflow) - - - - (1,130) 3.2 Ground water withdrawal 77 540.7 319.0 (500) Comments: 1. Volume of 'sanitary' discharge is considered to be equal to 75% of minimum daily discharge for the year of 95% probability of occurrence 2. ' - reconstructed 3. 2 - limit of water withdrawal Background Papers: Water Resource 57 Management In the Kyrgyz Republic Development of Reservoir Storage to Regulate Water Availability 2.29 As discussed earlier, peak flows occur in April to July, with 80-90 percent of the flow occurring in the period of 140 to about 180 days extending to August or September. While this corresponds to the most important season in Kyrgyzstan, low and unreliable flows are often the rule in the summer months particularly in the latter part of the growing season. Hence, regulation of these flows is needed to ensure adequate water supplies are available over the full period needed--including for other purposes such as power generation. Fifteen major reservoirs have been built with a total active storage capacity of 15.6 knm3 to regulate these flows. Two of these reservoirs were built for power generation and are operated only for that purpose. Ten reservoirs have been built primarily for irrigation but also provide some municipal and industrial water supply as well. In addition, there are 24 smaller reservoirs with storage capacities ranging from 1-10 million m3. 2.30 There have been reports of significant loss of reservoir storage capacity due to sedimentation. The detrimental effects of deforestation and erosion caused by overgrazing, and construction of roads or other infrastructure, are evident while traveling in many watersheds of the Republic. There appears to be little or no systematic data on sediment transport in the streams and rivers where this might be a significant problem, however, and no data on rates of reservoir sedimentation and its economic consequences. The effects of stream and reservoir siltation are long-term and costly problems to rectify. More systematic monitoring and diagnostic analysis of this problem are needed, and low-cost preventive measures should receive priority attention. Institutional Arrangements for Water Management 2.31 As is common in many countries, the responsibility for developing, managing, and monitoring water resources for various purposes is divided among a large number of technical agencies. In Kyrgyzstan, the Ministry of Water Economy (MOWE) is at the apex of this group of agencies. It has no direct authority over the other agencies, but it is responsible for water allocation, water accounting, and for regulating and issuing permits for water use. The State Committee for Environmental Protection is responsible for regulating the discharge of pollutants into the Republic's waters, and for the collection of fees and fines for such discharges. The MOWE, together with the Oblasts and Rayons, is responsible for the construction and maintenance of irrigation infrastructure and the delivery of irrigation water. Hydromet, the State Committee for Geology - Hydrogeological Expedition, and the MOWE are responsible for aspects of municipal and industrial water supply. Routine monitoring of the quantity and quality of water is the responsibility of Hydromet and the State Committee for Geology - Hydrogeological Expedition. The MOWE monitors ground and surface water quantity and quality in irrigated areas. Dischargers of pollutants are responsible for monitoring water quality within 500 m of the point of discharge. Goskompriroda, The State Committee on Environmental Protection, supervises and checks this self-monitoring system. The Sanitary and Epidemiological Service of the Ministry of Health monitors the quality of tap water and sanitary facilities. Protected Watersheds 2.32 A number of areas and watersheds have been designated in Kyrgyzstan where access and land use are restricted. These areas are regulated to protect water supply sources and sensitive environmental resources. The areas and their location are summarized in the following Table 2-9. Background Papers: Water Resource 58 Management In the Kyrgyz Republic Table 2-9: Protected Watersheds River Basin: Reserve Oblast | Total Area .____________________ _ ;(ha) Syr Darya Besh-Aral Dzhalal-Abad 63,200 Sary-Chelek Dzhalal-Abad 23,800 Naryn Naryn 59,860 Karatal-Japyryk Naryn 6,500 Issyk-Kul Issyk-Kul Issyk-Kul 18,900 TOTAL 172,260 2.33 The vulnerable character of Lake Issyk Kul must be particularly stressed. The threats to the lake include: * pollution of the rivers flowing into the lake; * diversion and use of the waters draining into the lake, which can negatively affect the equilibrium between water inflow and lake evaporation; and * the increased levels of salts washing into the lake from agricultural activities may influence the mineral balance of the lake. The lake has no flushing capacity, as it has no outlet, compounding the impact of any human-induced changes to waters flowing into it. The saline character of the water is already evident. D. DoMESTIc, INDusTRIAL, AND AGRICULTURAL WATER USE Water Supply 2.34 Three organizations are responsible for supplying domestic, communal, and industrial water to people and industries in urban and rural areas. About 64.5 percent of the total population* of Kyrgyzstan live in rural areas. Of the urban population, over one third, 38 percent, lives in Bishkek, and the balance in oblast and rayon centers. In Bishkek, a vodokanal under the Bishkek city council is responsible for water supply, and wastewater collection and treatment. In the smaller cities, towns and villages that form the oblast and rayon centers, the organization Krygyzjylkommunsoyuz develops, operates, and maintains water supplies and sanitation facilities. Finally, Kyrgyzselremstroy is responsible for developing piped water supplies in rural areas. 2/ About 4,430,000 in 1994. Background Papers: Water Resource 59 Management In the Kyrgyz Republic Water Supply for Oblast and Rayon Centers, and Small Towns 2.35 KygyjylJkommunsoyuz: The State organization Krygyzjylkommunsoyuz (KJKS) develops water supply and sanitation systems for oblast and rayon centers, and small towns in Kyrgyzstan. It currently provides service to 613,300 people in 45 municipalities and small towns, about 60 percent of the estimated 1,048,000 people living in urban areas outside of Bishkek. Tables 2-10 and 2-11 summarize the current extent of water supply service and waste water collection and treatment service in these areas. The principle type of water service in these urban areas is household connections and hydrants or standpipes located in the street or yard. As indicated in Table 2-10, about 39 percent are served through street and yard taps, and the remaining by household connections. 2.36 KJKS is responsible for the operation and maintenance of all urban and municipal infrastructure in Kyrgyzstan except in the city of Bishkek which is responsible for its own services. KJKS services range from water supply and wastewater collection and treatment to housing maintenance, solid waste collection and disposal, street cleaning, heat, maintenance of trees and green spaces, road maintenance, etc. Its clients include households, industries, institutes and other state organizations, and oblast, rayon, and other local authorities. KJKS operates through two types of oblast and rayon organizations: vodokanals who are responsible for water supply, sewers, and waste water treatment; and combinats who are responsible for all other municipal infrastructure operation and maintenance services. These local units carry out all project work as well as the operation and maintenance of facilities. 2.37 The primary source of water supply for KJKS systems is ground water which is generally of excellent quality. The two primary sources of risk for drinking water are the deteriorated condition of the distribution systems and the vulnerability of surface water sources to contaminants in some areas. Some towns must still rely on surface water that is locally vulnerable to contamination from agro- chemicals, livestock manures, and sanitary wastes. An important exarnple of the negative consequences of ineffective control of landuse near raw water sources can be found in Osh. One of the principal water sources for Osh is the Ak-Buura River which is prone to sudden and damaging floods. This basin has numerous large livestock and farming operations, and many dachas without adequate sanitation facilities located within the flood zone. Wastes are washed into the water supply system during high waters resulting in disruption of services and dangerous contamination of the raw water supply. In another example reported by the sanitary inspection authorities, 60 percent of the population of Kala-Kul rely on unfiltered and non-disinfected surface water from the Kala-Kul and Kashka-Su rivers, which is piped through the municipal network. 2.38 As indicated in Table 2-11, waste water collection capacity in the towns equals about 70 percent of the volume of water supply capacity. All the towns served with wastewater collection systems are provided with biological treatment facilities. No systematic assessment is available of the current performance and effectiveness of these treatment facilities, however, and anecdotal reports from the sanitary inspection service indicate that more than 50% are ineffective and are sources of health risks. Background Papers: Water Resource 60 Management In the Kyrgyz Republic Table 2-10: Water-supply by Kyrgyzgylkommunsoyuz Total Quantity of water intakes Quantity of Length The number the number of Name (denomination) of the capacity hydrant of water of people people using populated areas thousand (street etc. mains using water- water-pipes inside m'/day iUnderground Open Total water pipes) (km) pipes in the the yard and street house Towns Osh 132.71 8 2 10 581 260 1,180 43,347 Karakol 29.8 4 2 6 200 156 8,300 33,070 Cholpon-Ata 11.5 2 - 2 14 79.15 400 5,300 Balykchi 43.9 12 12 97 174.4 12,600 20,000 Kyzyl-Kiya 36.9 14 14 306 276.6 2,340 11,540 Uzgen 4.9 4 4 71 56.8 1,840 4,145 Kara-Suu 3.02 3 3 145 35.8 2,120 3,200 Jalal-Abad 4 9 9 24 176 2,723 17,633 Tokmok 24.7 3 3 454 18.6 2,120 4,250 Kant 108.7 2 2 49 35.7 320 700 Kara-Balta 7.8 5 5 260 125.8 1,210 18,430 Talas 26.0 - 1 71 71.0 200 1.234 Naryn 9.92 1 1 2 55 62.3 33,000 2,000 15.6 Total on towns 455.45 68 5 73 2327 1,668.15 68,353 164,849 VillaRtes Gulcha 2.57 1 - 1 78 21.5 1,230 2,100 Isphana 7.1 5 5 47 35.0 848 1,940 Batken 9.2 5 5 190 64.9 1,340 2,420 Knowkat 8.64 1 2 3 180 53.0 2,120 4,130 Kara-Kuldga 1.66 5 - 5 102 42.4 1,180 3,244 Pokrovka (Jety-Oguz Region) 4.8 2 2 190 51.4 6,540 4,700 Typ 7.5 1 1 20 89.5 5,390 6,100 Teplokluchenka 2.7 - I I 110 75.3 5,000 4,920 Bokonbaevo 2.8 3 - 3 80 30.3 5,700 Ala-Buka 7.5 1 1 2 6 11.6 585 1,382 Suzak 6.55 3 - 3 16 15.0 370 3,900 Karavan 7.3 4 4 231 83.5 1,120 2,200 Lenin-Jol 7.68 2 2 106 44.4 800 1,600 Chatkal 1.6 - 1 23 13.2 2,940 Kazarman 4.0 1 1 74 20.2 3,234 Chui 9.1 1 1 68 27.6 1,100 2,400 Lebedinovka 3.8 1 1 94 47.8 1,200 2,300 Sokuluk 7.7 1 1 86 67.3 270 6,580 Belovodskoe 11.2 2 2 288 83.8 3,110 7,140 At-Bashi 1.7 - I 1 54 18.0 5,200 500 Chack 2.3 - 2 2 53 14.4 2,400 1,200 Kochkorka 2.4 1 1 54 36.0 3,200 2,000 Baetovo 3.0 1 1 45 22.7 2,440 1,150 Kok-Oy 2.9 1 I 64 25.0 150 503 Kyzyl-Adyr 10.0 2 2 45 49.95 180 900 Pokrovka (Mains region) 4.5 1 - 62 33.0 195 322 Shekhphtar 1.56 - 1 4 10.2 52 596 Total on villages 141.76 54 2370 1,086.95 578,994 64,227 Background Papers: Water Resource 61 Management In the Kyrgyz Republic Total Quantity of water intakes Quantity of Length The number the number of Name (denomination) of the capacity hydrant of water of people people using populated areas thousand (street etc. mains using water- water-pipes inside m'/day Underground Open Total water pipes) (km) pipes in the the yard and street house Settlements (kind of a very small town) Kyzyl-Gar 2.3 I 1 13 41.7 2,200 Shamaldy-Sai 6.0 I 1 4 29.0 - 2,769 Toktogul 1.89 I 1 82 52.64 216 3,923 Bystrovka 11.5 1 1 127 138.6 1,960 2,310 Ivanovka 3.8 1 1 140 30.8 1,310 2,790 Total on settlements 25.49 5 366 292.74 5.686 11,792 Total on Kyrgyzjilkommunsoyuz 622.7 132 5.063 3,047.84 131,933 240,868 Table 2-11: Sewerage Provision by Kyrgy7jilkommunsoyuz Name of populated areas | thousand m/24 hours (krn) Treatment Towns Jalal-Abad 36.65 62.75 Mechanical and biological treatment Tokmok 36.5 36.4 - - Kant 3.0 9.0 - | Kara-Balta 24.5 12.7 - | Osh 100.0 133.1 - | Kyzyl-Kiya 25.0 12.0 - - Naryn 6.0 18.8 - | Karakol 22.0 30.3 - | Cholpon-Ata 36.0 21.1 - | Balykchi 34.0 42.1 - | Talas 6.0 Total 323.65 384.25 Settlements (kind of a very small town) Shamaldy-Sai 1.728 11.0 - | Toktogul 5.6 12.0 - | Total 7.328 23.0 Villages Shekaphtar 0.2 5.22 Belovodskoe 0.4 5.1 Karavan 3.98 Batken 0.4 9.0 Teplokluchenka 0.2 2.2 Total 1.2 25.5 Total on Kyrgyz-Jilkommunsoyuz 332.178 432.75 Background Papers: Water Resource 62 Management In the Kyrgyz Republic 2.39 KJKS water supply and waste water operations are rinanced through water tariffs and fees paid by its clients for services. In the case of households, water charges are paid as part of a lump sun charge paid to the local communal department for municipal services. Domestic tariffs for water and sewer services are established by local authorities based on the accounts of the local unit of KIKS which are regulated by the State Committee on Prices who unfortunately do not allow the cost of maintenance of existing facilities to be included in the rate base. Only emergency repairs are included in KJKS's rate base. Tariffs negotiated with industrial enterprises take into account the underpayment by domestic and municipal consumers, which results in a significant cross-subsidy by industry to these other consumers. At present, however, tariffs cover between 50 and 100 percent of real expenses. Financial deficits are currently very large--32,000,000 soms and growing. 2.40 An estimated 70 percent of KJKS's service network is in poor condition and needs rehabilitation, repair, or replacement. There are no funds to install additional disinfection equipment where it is needed or to buy necessary chemicals for existing units. If current tariffs reflected the full cost of operation and maintenance, it is believed that few households could afford to pay the water charges. 2.41 Water Supply in Rural Areas. The State organization Kyrgyzselremstroy develops piped water supply systems for rural people in Kyrgyzstan. The extent of the current piped water service in rural areas is summarized in Tables 2-12 and 2-13. The country has been implementing a program to expand piped water supply for many years achieving the present estimated coverage of about 47-50 percent of the rural population. The remaining villages, totaling about 634, still depend on open reservoirs and irrigation canals for water supply. About 72 percent of the 2.5 million rural population are presently served by small piped water supply systems. About 97 percent of the rural piped service is provided by 770 ground water wells supplying 662 water mains averaging 14 km in length. These mains supply 26,814 street hydrants or standpipes. About half of this system was built prior to 1970. It is reported that barely 10 percent of the previous number of staff are available to monitor drinking water quality in this highly dispersed system. The lack of budget at Kyrgyzselremstroy has resulted in major reductions in the expansion of coverage to about 25 percent of its former rate. In addition, untrained personnel operate and maintain many systems. 2.42 Industrial Water Use. Industries use about seven percent of total water used in the country. The total water used was 862 million m3 in 1993, including 601 million m3 in the Chu River basin, and 236 million m3 in the Syr Darya River basin, mainly in the Osh and Djalal-Abad regions. Agricultural Water Use 2.43 As with many parts of the domestic water supply distribution system, key elements of the irrigation infrastructure of the Republic are old, including pump stations, diversion works, and reservoir facilities. Performance and function of the water supply system are deteriorating because of the lack of maintenance, repair, and replacement. Agricultural productivity is much higher on irrigated lands, and agriculture contributes about 30 percent of the GDP. Therefore there are considerable economic costs for the Republic when the water distribution system functions inefficiently and below capacity. 63 Table 2-12: Rural water supply in the Kyrgyz Republic (excluding regional centers) Name of Oblast Total number of Length of The head-work Including surface Water-supply The years when water-mains were build d Street water niral water mains water-supply water-supply water number wells 19Hydrants km intake Before 1960 1961 -1970 1971 -1994l Chui 192 3,061.5 246 5 230 303.7 1,610.2 1147.6 8,884 Issyk-Kul 104 1,250.0 120 3 119 97.7 559.2 593.1 4,380 Nalyn 70 735.7 69 - 42 48.2 252.0 435.5 2,206 Osha 138 2,353.5 225 8 209 169.5 886.8 1,297.2 5,982 Dhalal-Abad 106 1,519.4 117 7 110 63.0 468.4 988.0 3,083 Talas 52 683.3 53 60 88.9 239.2 355.2 2,279 Source: Appendix No.2 to letter 'Kyrgyzselremstroy' from 12.08.94. 64 Table 2-13: Central water supply in rural areas in the Kyrgyz Republic Number of rural populated areas Number of constant rural population Funds necessary to maintin technical Total number of rural (thousand people) service of existing water mains in a year Oblast water mains (in thousand soms) Total No central water-supply Total Not provided by cental I ____ ______ ______ __ ___ ______ _____ I I__ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ w ater-supply In all the republic 9,603.4 1,736 737 2,427.0 672.8 16,737.0 Chui 3,061.5 318 22 497.0 9.5 5,333.7 Issyk-Kul 1,250.0 183 50 241.5 42.8 2,177.8 Naryn 735.7 132 52 168.3 45.3 1,281.7 Osh 2,353.5 611 359 887.4 342.3 4,078.7 Jalal-Abad 1,519.4 404 227 483.5 196.0 2,674.6 Talas 683.3 88 27 149.3 36.9 1,190.5 Total 19,206.8 3,472 1,474 4,854 1,345.6 33,474.0 Source: Appendix No.1 to letter "Kyrgyzselremstroy" from 12.08.94. N 01-65 Note: Regional centers where Vodokanals provide services to maintain water supply are not included in the data on providing the rural people by drinking water. All the rural water-mains are included, including water-mains built before 1970 (45% of all rural water-mains). All of them are old and need reconstruction, but they are still working. Background Papers: Water Resource 65 Management in the Kyrgyz Republic 2.44 Expenditures on maintenance and repairs to the irrigation system have declined from 56 percent of the estimated expenditure requirements in 1991, to 9 percent in 1992, and 5 percent in 1993. Canals are cleaned less often, water control structures are not repaired, and canal capacities and the volume of water delivered have declined. The budget for new construction in the irrigation system was 512.9 million rubles in 1992, divided among the oblasts (77 percent) and MoWE (23 percent); the corresponding budget for operation was 444.9 million rubles including 133 million rubles for capital repairs. In 1993, a budget of 285 million soms was agreed upon with the State Committee for the Economy, but only 60 million soms were allocated, and 30 million soms actually provided--only enough to pay salaries. Expenditures on maintenance and repairs have declined from 56 percent of the estimated requirements in 1991 to 9 percent in 1992, and 5 percent in 1993. While increased efficiency and restructuring of water sector institutions, infrastructure, and mode of operation are needed, failure to adequately fund operation and maintenance is a costly and short-sighted policy in such an economically vital sector. 2.45 A new water law was passed by the Jogorku Kenesh in the fall of 1994. The new law strengthens the legal basis for water management and the regulation of both water quality and water use. A provision to begin the gradual recovery of state costs for infrastructure construction, operation, and maintenance costs was eliminated, however, for agriculture and forestry water uses. Therefore, the MOWE has no means to assess water charges to recover even a part of its costs at present. It also cannot reorganize irrigation to decentralize responsibility for routine maintenance to the farmers or local irrigation organizations, such as water-user associations or farmer-owned irrigation districts. E. THREATS TO THE QUALrrY OF RAW WATER SUPPLEES 2.46 Nearly 90 percent of all drinking water provided by centralized pipe systems, and a high proportion of industrial water, is supplied from groundwater. The observed quality of freshwater from underground sources used in centralized distribution systems in urban and rural areas meets the present state standard for drinking water with respect to physical, chemical, and bacteriological parameters. The water is usually not treated before distribution. Long term records reportedly indicate disturbing trends, however, including worsening ground water quality near major cities such as Bishkek and Kara-Balta. Nitrate concentrations have risen steadily, exceeding the maximum of 45 mg/l in several observation wells. Bacterial pollution of open reservoirs and water channels exceed the standards by 10-300 times in some areas. 2.47 The unsatisfactory sanitary and technical condition of many raw water intakes is also contributing to the deterioration of raw drinking water quality. Efforts to enforce sanitary protection zones in areas near surface water intakes or where water infiltrates into the aquifer have proven ineffective--uncontrolled construction of homes without sanitary facilities or connection to sewers, expansion of livestock operations, laundries, storehouses for agro-chemicals and fertilizers, and unsafe disposal of liquid and solid municipal and industrial waste continues to expand in an unregulated manner. Sanepid data indicates that more than half of all waste water collection and treatment systems are ineffective or inoperable. Their inspections also show that municipal solid waste is not collected in a timely manner, and over 90 percent of all municipal solid waste disposal sites do not meet sanitary standards. These conditions contribute to the steady increase in untreated pollution entering the environment and infiltrating into underground aquifers and surface water channels. Background Papers: Water Resource 66 Management in the Kyrgyz Republic Threats to Ground Water Quality 2.48 Contamination of the upper part of many aquifers with substances such as heavy metals, oils, and sanitary wastes is extensive in areas near industrial sites and cities. The effect of these pollution sources is to create a plume, or layer of low quality, contaminated water overlying the deeper zones of good quality water that is being withdrawn by water supply wells. Unlike immniscible fluids such as oils, which would tend to remain in this shallow zone floating above the good quality water, soluble substances such as heavy metals and nitrates gradually diffuse throughout the aquifer eventually contaminating it to dangerous concentration levels if the infiltration of pollution from the surface continues. Hence, the long term importance of pollution prevention even in those cases where pollution already exists. 2.49 Agriculture, including intensive irrigation and concentrated livestock farming, is also been an important source of pollution. An example of the consequences of uncontrolled exploitation of groundwater has been observed in Osh and Dzhalal-Abad Oblasts, where over-pumped irrigation wells combined with heavy municipal water demand have caused the intrusion of saline ground water into the aquifers. In the Bishkek area, nitrates contaminate the Alaarchi aquifer, which supplies about 60 percent of the city's water supply, down to depths of 100-150 m. Concentrations exceeding the present maximum allowable concentration (MAC) (45 mg/l) extend over about 25 km2 of the aquifer, and concentrations ranging from 22 to 45 mg/I have been observed over about 80 km2. In the other aquifer serving Bishkek, Orto Alysh, a steady trend of increasing nitrate concentration has been observed. The Bishkek Vodokanal, for example, observed an increase from 21.6 mg/l to 26.5 mg/l, about 20 percent, in the Orto-Alysh aquifer between 1992 and 1993. Elevated concentrations of Cr6' are also being observed near large industrial sites located over the Alaarchi aquifer. 2.50 The principle sources of groundwater pollution threats include: 3 unsafe storage and disposal of toxic and other industrial wastes, including waste oils, other organic substances, and sanitary wastes by industries; 3 the poor state of urban sewer systems which leak sanitary wastes into aquifers; * disposal of municipal solid wastes in unsafe dumps from which organic wastes are leached into the aquifer; and * poorly maintained and unsafely constructed household latrines, especially in newly developing parts of the city where sewer services is not available. 2.51 The aquifers supplying Bishkek are under considerable pressure and will need to be expanded or supplemented by a new and additional source over the next 10-20 years (an expansion of the Alaarchi well field has already been approved). A major new field has been identified, Issik-Atainskoe, with a capacity nearly equal to the two existing fields. Development of this new field would avoid the growing problems of managing the pollution of the existing aquifers, but at considerable expense. The high cost of shifting prematurely to a new source before it is needed to meet real growth in demand should be compared with the cost of better operation of the existing well fields. Improved operations would be directed toward preventing the intrusion of the contaminated water into the deeper, exploited portions of the aquifer, and greater efforts to control pollution from industrial, municipal, irrigation, and livestock sources. In addition, the reported high losses and unaccounted-for water in the present municipal distribution system should be reduced before major investments to expand supply are undertaken. Background Papers: Water Resource 67 Management in the Kyrgyz Republic Pollution of Ground Water Near Kara Balta Ground water of the West Chu aquifer in the area of the major industrial city of Kara Balta has been subject to serious contamination by industrial sources, including sugar and rug factories, and the huge industrial association Yuzhpotymetat. The aquifer is particularly vulnerable because it consists of highly permeable rocks, with little natural protection, and a lack of pressure in the top and middle parts of the discharge cone. The aquifer is used by the Vodokanal to supply drinking water to Kara Balta and the surrounding towns and villages. Contamination, detected in several parts of the aquifer, has resulted from leaching and infiltration of industrial tailings. The polluted water has the form of a pear-shaped plume elongated north-south along the direction of flow, and presently extending to a depth of about 150m. The tailings cover an area of about 240 ha and have accumulated over a period of 35 years. Despite the installation of five extraction wells to remove leachates (which have never functioned at full capacity) and the lining of some newer sections of the tailings to prevent infiltration, the concentration of pollutants in the ground water remains extraordinarily high: TDS (4.6 gIl), sulfates (3.5 g/l), nitrates (370 mg/I), nitrites (100 mg/I), ammonia (325 mg/I), Mn (200 mg/I), and Mo (4.4 mg/I). Remarkably, no negative impact on the major Vodokanal water supply wells has yet been detected. 2.52 Greater use of the shallower, sometimes polluted groundwater for technical or non-potable uses for which it is suitable would also ease the pressure on the aquifer and conserve high quality water for drinking purposes. About 130,000 m3 of water per day are already withdrawn for these uses in Bishkek. Threats to Surface Water Quality 2.53 Most surface water bodies in Kyrgyzstan have low levels of pollution. Observations in all river basins show an adequate oxygen regime (concentrations are above 5-6 mg/l) and low content of organic and nutrient substances (BOD5 is usually below 2-3 mg/I, nitrates below 1 mg/l). River water is especially clean, sometimes even pristine, in the upper parts of Naryn and Amu Darya Rivers, and other mountainous rivers. 2.54 Water in the drains, canals, and rivers near cities and industrial areas is often used by nearby households for washing and other non-potable uses and by children for recreation and sometimes drinking. This water is generally very badly contaminated with sanitary wastes, livestock manures, and industrial toxic and hazardous wastes. Such "hot spots" are located in most populated Chu river basin, lower sections of Kara Darya and Naryn tributaries in Osh and Djalal-Abad Oblasts, and the Tyup rivers flowing into Issyk-Kul Lake. Elevated concentrations of nitrites (up to 0.2 mgN/l), ammonia (1 mgN/1), oil and grease (0.5 mg/I), phenols (0.001 mg/1) and pesticides (0.002 mg/I) have been detected in these rivers. 2.55 As noted earlier, many small towns and villages must still rely on surface water supplies that are particularly vulnerable during spring floods and infrequent but very intense summer rains. During summer and fall when flow of the small and medium sized rivers is declining or very low, the assimilative capacity of these rivers is also low and the health risk associated with biological and other contaminates very high. The Sanepid service has reported micro-biological contamination up to five times the standard, and intestinal disease microbes 300 times normal. Background Papers: Water Resource 68 Management in the Kyrgyz Republic 2.56 In summary, the main sources of these threats are: * the poor condition of municipal sewer systems, and the poor performance of existing biological treatment facilities; * improper disposal of municipal solid wastes that allows leaching of contaminated liquids into nearby rivers and drains; * unsafe handling and storage of livestock manures; and * improperly stored toxic wastes, and the absence of adequate pre-treatment of industrial liquid wastes. Surface Water Quality in the Chu River Basin The Chu River is considered one of the most polluted in Kyrgyzstan, in large part because of the cities and industrial sites located along its banks. Data were collected by Hydromet from the end of 1960s unto 1991 on some of the most impacted river sites. These data were used for analyses of long-term surface water quality changes. Six sites were selected on the Chu river upstream and downstream of cites (Tokmak, Milyafan, Vasilyevka, Nizhne-Chuyskiy); two sites were selected on the Alaarcha river (upstream and downstream from Bishkek), and two sites were located on the rivers Alamedin. Records of major ions (Ca, Mg, HCO3, SO4, Cl, TDS), nutrients (NH4, NO2, NO3, P04, Si, Fe), organic substances (COD, BOD5), and pollutants (oil and grease, surfactants, phenols, Cu and Zn) were investigated. Non parametric statistics were used (Seasonal Kendall slope estimates which are the most appropriate for water quality data analysis). The reliability of available data is questionable, however, particularly in the case of pollutants for which analytical techniques changed during the period. Data on the major ions, nutrients and organic substances are more consistent and reliable. The general conclusion drawn from the analyses of these records is that during last 10-15 years basic surface water quality in the Chu basin has not deteriorated. Moreover, in some cases clear improvements can been observed. This is evident in the measured concentrations of organic compounds (COD and BOD,) which decreased or remained stable for all studied sites. No clear trend can be established for nutrients: concentrations of phosphates and ammonia have tended to decrease, while concentrations of nitrite and nitrate are stable or slowly increasing. Concentrations of total dissolved solids did not change but chlorides increased in five of the six sites on the Chu river. Almost all pollutant records showed declining or static concentrations and current concentrations are usually below MACs. F. DRINKING WATER QUALITY 2.57 Drinking water tested at municipal taps is increasingly failing to meet the applicable standards, due to the lack of protection of water sources, and lack of maintenance of distribution pipes and related facilities. This condition is a major factor in the observed increase in viral hepatitis and intestinal disease with unstated aetiology. Background Papers: Water Resource 69 Management in the Kyrgyz Republic 2.58 Tests of drinking water in Issyk-Kul exceed the norm for bacteriological contamination in 46.5 percent of the tests, and departures from the norm in Sulyukta are 40.8 percent, both well above the average for Kyrgyzstan as a whole. Other locations with similar conditions include Tasn-Kumyr (25.5 percent of the tests), Kok-Jangak (28.8 percent), Kala-Kul (23.6 percent), Ala-Buka (41.2 percent), and Talas (36 percent). In these areas, the Saniped reported 18 discharges from waste water treatment facilities into open reservoirs and upstream from intakes to the centralized piped water supply systems. G. CONCLUSIONS AND RECOMMENDATIONS 2.59 Some key conclusions of this brief assessment of current issues concerned with water management and water supply are described below. Priority actions are proposed in three areas - policy reform, institutional strengthening, and targeted interventions. They are summarized in Table 2-14. Conclusions 2.60 Many detailed findings and conclusions are included in the assessment. Summarized below are the major conclusions: - There are sufficient quantities of water of excellent quality available for domestic and industrial use for the foreseeable future. Water availability is likely to become a constraint to expanded irrigation, land reclamation, and improved productivity of irrigated areas, however, unless there are significant improvements in efficiency in the distribution and use of water on farms, and a major effort made to increase water conservation. i The regulation of landuse and enforcement of pollution prevention has been seriously inadequate in areas where human activities could directly contaminate water sources. This has resulted in negative heath impacts in the form of increased morbidity and mortality for populations with vulnerable raw water supplies--particularly in communities that rely on open water sources. - The present system for financing maintenance, rehabilitation, repair, replacement, and modernization of infrastructure for drinking water, and irrigation water supply is inadequate. In most areas, the distribution system is already over 30 years old--including intakes, pumps, disinfections equipment, canals, gates, and distribution pipe systems. Major health and economic costs are already evident and will inevitably grow as the present infrastructure ages, and performance and functions deteriorate further. * The key water management organizations on which the Republic depends for sound protection and management of this vital resource have been seriously weakened. Reduced size and improved efficiency of government organizations have been legitimate aims during the transition period. The present loss of highly trained staff (especially younger staff) and the lack of equipment and maintenance will likely leave these organizations permanently crippled. This will have direct health and economnic consequences as the water supply deteriorates. Recomnnendations 2.61 The collapse of the Soviet Union and the subsequent economic and institutional changes have set in motion an erosion of basic water management and sanitation infrastructure. The failure to maintain infrastructure that is essential for the health and economic well-being of the population has important Background Papers: Water Resource 70 Management in the Kyrgyz Republic near term health and economic costs, and long-term financial consequences that should be considered now. Massive investments in sophisticated technology are not needed to reverse this process. Instead, the emphasis should be on the gradual introduction of new institutional arrangements, on halting the brain drain from public sector organizations, and on simple, well known and low-cost investments in the impressive water management and sanitation infrastructure that already exists in the country. There should also be a modest program to expand these services to vulnerable groups. 2.62 The Table below outlines a limited number of recommendations that focus on addressing these needs. The recommended actions and interventions should complement the NEAP recommendations for improving monitoring and assessment of public health. In addition, the three types of action outlined below are closely interrelated, and should be integrated and coordinated with each other to the extent possible. 2.63 Policy Reforms. The recommendations for priority policy actions focus in particular on the issue of mobilizing local funds to finance essential infrastructure operation and maintenance services for domestic, industrial, and agricultural water supply. Local government organization and finance is a large issue the Government will need to confront, but immediate measures can to be identified to mobilize funds for rehabilitation and essential maintenance, and operations including the purchase of chemicals. The gradual increase in domestic and industrial tariffs, and the gradual introduction of water charges for delivery of water to farmers are essential steps. 2.64 Institutional Strengthening. The two recommendations for institutional strengthening focus on (i) improving the process for priority-setting, planning and capital budgeting by strengthening the linkages among different agencies to ensure the flow of timely health and economic impact data, and (ii) preserving and utilizing the expertise and institutional experience of the Republic's water management organizations: (i) As financing for rehabilitation, repairs, and extensions of service into new areas is extremely limited, priority-setting must be rigorously based on the relative impact of different choices on health and the local economy. This type of benefit-analysis requires good quality and timely data on such things as water quality, public health, flow distribution, water shortages and outages, and production in irrigated areas. (ii) The government must make every effort to ensure that the water management organizations are fully functional and that key technical people remain with these organizations. The restructuring these organization have undergone was necessary in part, but the government should take urgent steps to ensure that these economically vital organizations are not crippled. The economy and the health of the people will suffer if action is not taken. 2.65 Targeted Interventions. Targeted interventions are recommended to address the highest priority problems of water supply contamination, and vulnerable population groups. Interventions could include completion of projects already underway; rehabilitation, repair or replacement of facilities that are not functioning properly, including pump stations, wells, pipe networks and mains, intakes, reservoirs and storage tanks, irrigation and reclamation systems, treatment works (disinfection equipment), sewers and private sanitation facilities; and purchase of spare parts and chemicals. Priorities would be determined based on the project's impact on the following four factors: * Health. The proposed projects should produce tangible health impacts in the form of reduced incidence of water borne disease, decreased child morbidity and mortality, or diminished presence of high risk factors. These include bacterial contamination, nitrates, or other factors Background Papers: Water Resource 71 Management in the Kyrgyz Republic for which the exposures under current conditions at the specific location can be shown to represent a high health risk. * Productivity. The projects or interventions should produce economic benefits in terms of increased agricultural productivity or income, reductions in the cost of water supply, or an increase in local employment (particularly an intensive use of local labor). * Equity. The projects should employ low-cost measures using local materials, businesses, contractors, and labor, and be directed toward areas with especially low income. * Technical and Financial Factors. Proposed projects should demonstrate that they are based on a least-cost approach with respect to investment, operation, and maintenance; can be implemented quickly with existing technology and available materials; are capable of being implemented in stages, and address problems which are recognized as very high priority. The size of each individual project would be restricted in order to spread the limited available funds to all oblasts. The proposed projects should demonstrate that local authorities are committed to the plan, and are developing the necessary financial mechanisms to fully fund operation and maintenance of any infrastructure within a reasonable period of time. 2.66 An inter-ministerial or multi-agency team should form an emergency working team for two purposes. (i) An integrated water planning/management study should be undertaken to review available data (which unfortunately are often inconsistent), identify data gaps, and gain an interdisciplinary over- view of the present condition of the water management and supply system, including operation of reservoirs, etc. An integrated water resource policy plan which balances the needs of the different sectors and interest groups concerned with water supply, such as agricultural, industry, hydro-power, and municipal services. (ii) The multi-agency team would solicit, evaluate and select proposals from the concerned agencies and local units of government. They would issue guidelines for identification and preparation of project proposals, develop, describe, and issue criteria for project evaluation and selection, visit project sites, and compile and possibly collect data on which to base the evaluation of subprojects. The proposal guidelines should include well-defined procedures for preparation of the feasibility study, including a standardized, and simplified report format. 2.67 This would be a multi-year program. Each year, the working team would select the projects to be included in the priority program and submit this "umbrella" proposal to the central government for support. The team would also notify the concerned local governments on the outcome of their proposals and the financial arrangements that will need to be made by the recipients. It is anticipated that central government grants for selected projects will be cost-shared by the concerned local government. Donor assistance may be sought to finance technical assistance for the initial one or two years of the program, and for longer-term support for investment financing. Consideration should also be given to supporting a village grant and/or credit program to support essential works and income generating activities at that level. 2.68 Donor assistance would also be sought to finance essential and complimentary technical assistance needs which might include: * Assistance in developing municipal and oblast governance and financial reforms. * Assistance in strengthening health assessment at the oblast and rayon level, including strengthening local units of Sanepid, Goskompriroda, GoskomGeol, and MOWE monitoring capability, and establishing joint information systems in the related areas. Background Papers: Water Resource 72 Management In the Kyrgyz Republic * Assessment of the rehabilitation and modernization needs for irrigation water distribution, and preparation of studies and proposals to gradually reform agricultural water pricing and increase cost recovery in the sector. * Development of cost-management programs for the organizations in charge of maintenance of municipal and irrigation services. * A wide range of training and capacity-building activities at the oblast, rayon, and municipal levels including, for example, the introduction of financial management systems such as market-system accounting procedures at the municipal level. Pilot and Demonstration Projects. 2.69 To deal with the most urgent problems, and to demonstrate immediate action at the local level a number of pilot and demonstration projects should be considered which demonstrate new approaches, materials, and techniques, and have immediate local benefits. * Low-cost sanitation demonstration projects including the introduction of new latrine and septic tank design and construction methods, emphasizing opportunities for income generation (from construction of slabs, latrine construction, etc.) and comnmunity participation. 3 Improved operation and performance of existing wastewater treatment plants; introduction and pilot testing of lower-cost (in terms of investmnent, operation, and maintenance) treatment systems for simall towns and villages with piped water and sewer service. Background Papers: Natural Resources 73 3. NATURAL RESOURCES A. AGRICULTURE 3.1 Overview. The Kyrgyz Republic has about 1,200,000 ha of arable lands, which is equivalent to 7 percent of the total territory and 13 percent of the manageable lands (excluding lakes, rivers, glaciers and mountain rocks). Approximately 850,000 ha are irrigated (70 percent of the arable lands), although a 1993 estimate reduced this area by 100,000 ha based on the poor state of the irrigation networks. The principal crops are cereal (winter wheat, spring wheat, winter barley, and maize), feed crops (maize for silage, alfalfa, spring barley), potatoes and vegetables (tomato, cabbage, melon, pepper), and other crops (cotton, tobacco, sugarbeet and silk) (see Table 3-1). The crop sector contributes 40 percent of the gross value of agricultural output (livestock is valued at 60 percent of the output). The entire agricultural sector comprises 30 percent of Kyrgyzstan's GDP. In 1990, about half of the total value of exports was from agricultural products. 3.2 The main crop producing regions are the Fergana Valley in Osh and Dzhalal-Abad Oblast; the Chui and Talas valleys; and the Issyk-Kul basin. About 625,000 ha were cropped with cereals in 1993, of which almost half were irrigated. One third of the cereals are grown in Chui Oblast while the remainder was evenly distributed over the other regions. Chui is also the main area for sugarbeet production. Cotton is mostly grown in the Fergana Valley, rotated with alfalfa (35,000 ha). Potatoes and late cabbage are grown in Issyk-Kul, while early vegetables are primarily grown in the Fergana Valley. Fruit orchards can be found on the lower slopes in all regions. Table 3-1: Cropped area (irrigated and rainfed) for the majior crops (1993) Crop Total Area Irrigated Area | Rainfed Area (ha) (ha) (ha) Cereals 623,800 326,400 297,400 Maize 40,700 29,100 11,600 Cotton 20,300 18,800 1,500 Tobacco 22,200 20,800 1,400 Sugarbeet 12,100 11,000 1,100 Potatoes 26,600 8,900 17,700 Vegetables 14,900 7,900 7,000 Watermelon 1,500 1,100 400 Maize silage 71,500 68,500 3,000 Lucerne 350,000 225,400 124,600 Fruits/grapes 37,400 14,200 23,200 Total 1,221,000 732,100 488,900 Source: Technical Working Group on Agriculture (Ministry of Agriculture) Background Papers: Natural Resources 74 3.3 Yields are generally low on irrigated lands by world standards, but they are about three times higher than yields in non-irrigated areas. Average yields for irrigated cereals (wheat and barley) are about 3.5 to 4 ton/ha, while average rainfed yields are in the range of 1.2 to 1.5 ton/ha. In dry years, rainfed crops may even fail completely. Cotton yields generally range from 2.2 to 3.2 ton/ha. Sugarbeet production is rising again and the average yield for sugarbeet is now about 25 ton/ha. In the mid- eighties, yields had declined to less than 10 ton/ha due to nematode infections and soilborne diseases, as a result of neglecting crop rotation requirements. 3.4 Agricultural policy has been directed towards national self-sufficiency in cereals for food security, with a number of supporting regulations such as compulsory marketing and centrally controlled farm management. In the present economic situation, however, credit is difficult to obtain, and farms are turning away from commercial production to local food self-sufficiency. This trend is evident in the fall in marketed and processed output, which is greater than the fall in actual production. In addition, the restructuring process of the 480 collective (Kolkhoz) and state farms (Sovkhoz) has been rather slow, further complicating agricultural policy reform efforts. Out of the 480 collective and state farms, only 165 have been reorganized so far, and many of these reorganizations have resulted in little or no change in the management structure. 3.5 Shifting crop mixes. Farm prices are now fully liberalized. One of the goals of freeing the price of wheat, for example, is to encourage a shift in consumption to imported wheat which can be produced more cheaply in neighboring republics. Then the good irrigated soils of Kyrgyzstan's valleys could be planted with higher value crops which can be sold locally and in adjacent countries. Even without such policy interventions, a collapse of trade, increased use of barter, payment-in-kind, and a movement to local food self-sufficiency are changing the cropping mix. It is difficult to project what all the changes will be or in which crops the Kyrgyz Republic has a comparative advantage under a market system. These changes may have unforeseen environmental repercussions, however--both positive and negative. For instance, wheat and other cereals require relatively few chemical inputs compared to cotton and vegetables, so watersheds which currently have low chemical inputs may undergo degradation as the crop nmix changes. To replace the formerly subsidized sources of feed, former hay meadows on fragile soils and steep slopes are now being planted with grains--increasing erosion in these areas. Potential changes such as these need to be identified and assessed for their environmental impact. 3.6 The use of agro-chemicals has declined steadily from 7,303 tons in 1980 to 1,900 tons in 1993 (see Table 3-2). This would be equivalent to an average use of 5.2 kg/ha in 1980 and 1.4 kg/ha in 1994. These figures are comparatively low--average use of agro-chemicals in the USA is 6 to 7 kg/ha, and in the European Union is 6.6 kg/ha. The reasons for the decline in chemical use include increasing costs of both services and materials, severe state budgetary constraints and a weak supplier economy. Of the agro-chemicals used, insecticides and herbicides are considered the most harnful to the environment. Table 3-2: Use of agro-chemicals per year in Kyrgyzstan (tons) (1980-1993) 1980 1981 1985 1990 1991 1992 1993 7,303 6,139 4,364 4,530 3,479 2,380 1,900 Source: Agricultural Working group of the State Committee on Environmental Protection. Background Papers: Natural Resources 75 3.7 Most of the pesticides are used on irrigated crops, particularly on cotton, for control of thrips and wilt. Agricultural experts estimate only about 40 to 50 percent of the crop's pesticide needs are currently met in Kyrgyzstan, however, and average use is estimated presently at less than 2 kg/ha. Most of the herbicides were used on cereals and maize, and to a lesser extent on cotton, sugarbeet and vegetables (mainly onion. The bulk of herbicides on cereals was applied in Issyk-Kul Oblast, where they may damage the lake ecosystem (Issyk-Kul lake is a closed lake without outflow). Most insecticides and fungicides are used on cotton. Since cotton is grown in rotation with lucerne, the pesticides used for that crop also go into the system (see Table 3-3). Hence, the cotton-growing areas in the Fergana Valley are the most affected by pesticide contamnination. Tobacco, another crop which demands high pesticide applications, is also grown in the cotton area. Primarily women and children work in the cotton and tobacco fields. Most of them are unaware of the health risks involved and do not use any protective measures. Local experts report that residual pesticides have contaminated approximately 380,000 ha. Unfortunately, there is currently no monitoring of agro-chemical persistence or morbidity in the exposed population. Table 3-3: Use of agro-chemicals on the main crops in Kyrgyzstan in tons (1993) | Insecticides I Fungicides | Herbicides I Defoliants Total Cotton 84.3 931.0 29.2 212.0 1,256.5 Cereals 1.1 0.2 84.2 0.0 85.5 Maize 2.1 0.0 80.0 0.0 82.1 Fruit trees 15.1 17.5 0.0 0.0 32.6 Tobacco 3.9 1.0 0.3 0.0 5.2 Lucerne 21.9 0.2 2.6 0.0 24.7 Grapes 4.5 19.8 0.0 0.0 24.3 Vegetables 3.4 8.7 11.7 0.0 23.8 Potatoes 2.5 16.4 2.4 0.0 21.3 Sugarbeet 6.5 2.5 14.0 0.0 23.0 Total 145.3 997.3 224.4 212.0 1,579.0 Source: Working group of the State Committee on Enviromnental Protection 3.8 There is presently an critical lack of herbicides, resulting in dramatic yield reductions, which has only partly been solved by grants from the Dutch Government and credits from the Japanese Government. Pesticides, however, are available. In general, the problem of pesticides is not the total quantity applied per ha, but instead poor handling practices, inefficient watering systems, and soil erosion, leading to runoff from the fields and pollution of water resources. Anything done to reduce erosion and runoff would also reduce pesticide levels in surface water, because pesticides are either dissolved in water or attached to eroding particles. Inadequate storage, transport and handling are responsible for the most serious environmental hazards, however. Pesticide spills are washed into waterbodies during floods in Background Papers: Natural Resources 76 much higher concentrations than are found on fields. Although Kyrgyz scientists have varying views about pesticide contamination of soils, 'point pollution' due to inappropriate storage and handling is of great concern, and appropriate regulations and control mechanisms are needed. 3.9 Fertilizer use is also not excessive in Kyrgyzstan, including nitrogen which is usually the most serious threat to groundwater. Average use of fertilizer, even in the best days, was only 180 kg/ha, and has since declined to less than 140 kg/ha. This compares with typical rates in the 1980's of 770 kg/ha in the Netherlands and 410 kg/ha in West Germany. Average use of manure is about I to 5 ton/ha, while average use of manure in the Netherlands is about 100 ton/ha. Fertilizer and manure spills during storage, transport and use, are sources of localized contamination of ground and surface water with bacteria and nitrates. Improper disposal of livestock wastes is also a source of ground and surface water contarnination and is discussed below. The remedy for pollution does not lie in reduced fertilizer use, but in better handling and storage practices, as well as in better farm management and soil conservation practices, which result in more efficient uptake of fertilizers. 3.10 Soil erosion and poorly managed water runoff are key problems in the agricultural sector. The diffuse 'non-point' pollution of soil erosion is closely associated with on-farm practices and techniques. Contour ploughing on sloping, rainfed fields is not widely practiced, resulting in increased soil erosion and water runoff. Irrigation is typically practiced by furrow irrigation (gravity) on sloping plots which are generally too large. Thus the water in the furrows accumulates too much kinetic energy which loosens and suspends top soil particles. In addition, although most precipitation is in the form of (gentle) snow, there are annual spring melts, and intensive rainfall events in both spring and fall. The peak runoff events which occur during these periods carry tremendous erosive power. Over the years, many irrigation plots have thus lost their natural fertility, and increasing amounts of fertilizers and pesticides have been necessary to maintain productivity. Soil conservation measures which are standard practice in other parts of the world are rarely used in the Republic. The practices include such simple techniques as mulching, contour ploughing, ridging, strip cropping, terracing, reduced tillage systems, reduced sizes of irrigation plots, and utilization of sprinklers instead of furrow irrigation. 3.11 Salinization problems presently affect an estimated 20 percent of the cultivated area, occurring particularly in the lower parts of the Chu and Fergana Valleys. These problems are caused by poor irrigation practices (applying too little or too much water) and the absence of adequate drainage systems. 3.12 In summary, erosion is the primary environmental issue in the agricultural sector, reducing the productivity of the land, and compromising water quality. This is a diffuse pollution problem, affecting most agricultural lands. Other environmental issues include point pollution caused by improper storage and handling of agro-chemicals, and salinization of irrigated lands, caused by inappropriate irrigation practices. 3.13 Recommended actions include: (a) Introduction of soil conservation techniques such as mulching, contour ploughing, strip cropping, reduced tillage, and improved irrigation practices; (b) Improved storage and handling of agro-chemicals, and increasing monitoring and penalizing of inappropriate handling; and (c) Improvement of irrigation systems and construction and rehabilitation of drainage systems for the restoration of saline lands. Background Papers: Natural Resources 77 (d) Updating legislation and standards which govern the use of agro-chemicals, and promoting the use of integrated pest management in agriculture practice. Livestock 3.14 The NEAP Agricultural Working Group estimates the number of livestock were 14.5 million sheep equivalents in 1994. The Institute of Pastures estimates the carrying capacity of Kyrgyzstan's rangelands is only seven million sheep equivalents. The present livestock density of two sheep equivalents per ha is the highest of all FSU Republics. Sheep are economically the most important component of the country's herds. The sheep population, which is used for both meat and wool production, grew from 2.8 million in 1913 to 10.5 million in 1990 under FSU agricultural policy. In 1994, sheep were estimated at 7.7 million head. The total number of horses is approximately 300,000 or 1.8 million sheep equivalents (one horse equals six sheep equivalents), and the number of cattle one million head, or five million sheep equivalents (one cow equals five sheep equivalents). 3.15 Presently, the number of sheep is declining due to the changing economic situation. Many animals are being sold for revenue, or because farmers cannot feed so many animals. Most pastures are located at great distances, and there is a shortage of good winter pastures. Feed grain imports--on which the excessive livestock population was dependent--were heavily subsidized in the past, and have now declined. Between 1985 and 1993, public sector sheep flocks on state and collective farms were reduced from 8.7 million to 4.2 million head, while sheep in the private sector increased from 1.5 million to 4.6 million head. As a result, grazing pressure has increased considerably around settlements. 3.16 The total pasture area in Kyrgyzstan is estimated at some 8.8 million ha. The pastures consist of 3.6 ha of high altitude summer pastures (above 2,500 m), 2.9 million ha of spring/fall pastures (between 1,500 and 2,500 m) and 2.3 million ha of winter pastures, usually on lower rainfall southern slopes. The summer, spring and fall pastures are principally annual grasses, which are reasonably resilient under heavy grazing. The winter pastures are composed primarily of crop residue, or perennial browse and shrub species which are hardy, drought tolerant and cold resistant, but if overgrazed are lost from the pasture and replaced by woody weeds and ground covers which are very poor forage. In addition, there are supporting forage areas of some 600,000 ha, consisting of 400,000 ha irrigated alfalfa and other legumes, and the remaining 200,000 ha of hay lands. 3.17 Average pasture productivity on an annual basis has declined almost linearly by approximately 33 percent since the 1960's and presently amounts to 300 kg/ha of dry matter. This decline is in direct proportion with the increase in stock numbers and is clearly a result of overgrazing. Productivity of summer pastures have declined from 640 kg/ha to 410 kg/ha and of spring/fall pastures from 470 kg/ha to 270 kg/ha during the last 30 years. Productivity of winter pastures has decreased dramatically during the last 30 years from 300 kg/ha to less than 100 kg/ha. Encroachment of woody weeds has affected some 5 million ha. Of those, 540,000 ha are severely affected, minimizing their value as forage lands. 3.18 Pasture degradation in the form of erosion has affected some 4.5 ha, or about half of the total pasture area. Soil compaction resulting from high livestock densities generally leads to accelerated soil erosion on pastures on steep slopes and wind erosion on the lower and drier pastures. Black soils during moist conditions are particularly sensitive to compaction, resulting in reduced infiltration capacity and increased surface run off. Erosion is made worse by cultivating hay meadows on fragile and steep slopes- -often such fields are ploughed in the direction of the slope, accelerating run-off and gullying. Background Papers: Natural Resources 78 3.19 Livestock nutrition is insufficient in general, and in a critical state during winter. Despite some 700,000 tons of crop residues which form a mainstay of winter feed in the absence of winter pastures, livestock are reliant on relatively high-cost supplementary feeding during winter. Imported grain feed amounted to 1.6 million tons before the interruption of inter-republic transfers, and in 1993, the amount of grain fed to animals dropped to 700,000 tons. Consequently, most livestock is underfed, with estimated grain shortages of 50 percent of that required, 30 percent for hay and 40 percent for silage. These feed shortages, particularly in winter, have resulted in a high proportion of tender and broken wool, and reduced meat production. 3.20 Inadequate manure storage and disposal from livestock farms, including direct dumping onto soils and into water courses, often results in higher concentrations of nitrates in both surface and ground water. One hundred large livestock and poultry yards generate approximately eight million tons of liquid manure wastes per year. In 1984, a special directive was issued to move all temporary enclosures which were near water courses, 80 percent of which have since been removed. Treatment facilities exist on only four livestock farms and ten poultry farms. Proper technology is needed to process the manure into fertilizer. Biology Institute researchers are experimenting with a wormcompost process to treat livestock wastes, but reduced government budgets have hindered wide-scale experimentation with the process. The Institute of Crop Farming has requested government support for large-scale production and testing of vermiculture and composting, but no support has yet been given. A public information campaign to improve waste disposal and storage practices at livestock farms, in combination with stronger fines, would help reduce groundwater pollution from this source. 3.21 Past livestock policies were aimed solely at increasing livestock numbers, irrespective of economic or environmental conditions, and have resulted in considerable degradation of the pasture resources. In the present economic situation, and in the absence of a full and marketable title to land, many people consider livestock a form of security and store of wealth. Sector specialists have recommended that future strategies be directed towards decreasing livestock numbers, changing flock structure (through higher turn-off of prime lambs), and increasing forage production. A recent directive (May, 1994) stated that pastures will not be subject to privatization, nor subdivided into small plots. The Ministry of Agriculture is not convinced that individual farmers, regional councils and village committees will be able to manage the pastures in a proper way. Instead, the pastures will remain under the Ministry of Agriculture, which is planning to lease the pastures to herders. 3.22 The key environmental issue in the livestock sector is the degradation caused by uncontrolled grazing and excessive numbers of animals. Overgrazing has resulted in serious deterioration of pastures, occurring in the form of loss of productivity, accelerated soil erosion, wind erosion, deforestation and increased occurrence of land slides. In some regions, this has resulted in serious forms of desertification, while in other areas sedimentation is occurring in the water supply reservoirs. It is not known to what extent hydropower reservoirs are subject to sedimentation. Although livestock numbers have been declining since the transition period, they are still twice the carrying capacity of the land. The issue of uncontrolled grazing will be very difficult to resolve in nation of traditionally nomadic herdsmen. Nevertheless, tremendous benefits can be gained by restricting grazing animals designated zones, and instituting improved management practices such as rotational grazing. This would also permit more various land uses, such as agroforestry and forest regeneration. 3.23 An additional environmental issue related to livestock is pollution of water courses through inappropriate storage and disposal of manure. Elevated levels of nitrates and bacteria in domestic water downstream result. Public education, fines, vermiculture and composting are tools which can be used to combat this problem. Background Papers: Natural Resources 79 3.24 Recommended actions: (1) Although the main solution is the reduction of stock numbers, a landuse planning system should be developed, whereby land is zoned according to its land capability. The information needed to determine carrying capacity of the land is readily available from the Institute of Land Use and Utilization ("Geprozem"). Clear land tenure will assist any program to become self-regulating--land lease holders will control trespass of livestock and will have incentive to reduce their flocks to sustainable sizes. Thus, in addition to private tenure and area allocation, each lease holding should have a grazing permit for a specified number of animals per hectare. Introduction of grazing management practices such no-grazing zones and rotational grazing, should be part of the lease-hold requirements as well. (2) Part of the solution to reduce stock lies in changing the flock structure from meat production using ewes and wethers, to production from a flock oriented toward seasonal prime lamb. A growing market exists in the Middle East and could be further developed. Iranian buyers are already purchasing lambs from Kyrgyzstan. The standards of the industry must be thoroughly upgraded and enforced, however, if the sale of meat products on hard currency export markets is to be expanded. At present, no establishment could meet standards of the European Union or United States Department of Agriculture. Provision of credits to private enterprises for the purchase of self- contained mobile abattoirs would also help the industry become more competitive. (3) A public information campaign to improve waste disposal and storage practices at livestock farms, in combination with stronger fines, should help to prevent or reduce groundwater pollution from this source. Efforts to explore techniques like vermiculture and composting to turn the wastes into a safe, useful product should be also supported. B. FoREsrRY 3.25 The area under forest cover, including dense shrubland, is estimated at 843,000 ha, of which 101,600 ha are forest plantations. This is about 4.2 percent of the country, or less than 8 percent of the manageable land area. Most of the forests are located between 1,300 and 2,400 meters above sea level. The extent of forest cover differs among oblasts: Dzhalal-Abad has the most forest cover (9.0 percent), followed by Osh (5.1 percent), Talas (3.6 percent), Issyk-Kul (2.7 percent), Naryn (2.2 percent) and Chui (2.1). 3.26 The natural forests of Kyrgyzstan are composed of more than 120 woody species. On the Northern ranges of the Tien Shan, the forests are mainly composed of spruce (Picea schrenkiana). In the Western Teen Shan, in dryer areas protected from northern winds, pistachio (Pistacia vera) and almond stands (Amugdalus communis) grow. The famous genetic centre of walnuts is in the more humid areas in the south--Juglans regia is the dominant walnut species. Apples (Malus spp.) and maples (Acer spp.) grow in the walnut understory. On dryer mountain-sides in both the North and South, various species of Juniper occur ("Archa"). 3.27 Based on assumptions about the prevailing climate and soils, and on historical accounts, there must have once been forest cover over much of the country. The single most important cause of the depletion and disappearance of the forests has been the enormous pressure of millions of grazing animals, particularly sheep, which eat all natural regeneration. The Kyrgyz people have been livestock-keepers Background Papers: Natural Resources 80 since time memorial. The conversion of forest cover into rangelands and pastures has been taking place for centuries. Nevertheless, historical accounts of travellers in the past report densely forested hill-sides. 3.28 At present, there is forest cover on 4.8 percent of the territory'. In the last 20 to 30 years, Kyrgyz naturalists estimate the forest cover has been reduced about 50 percent. Although the loss of vegetation cover is mainly due to the large numbers of livestock, there are other contributing factors as well. During the second World War and the 1960s, there was extensive cutting of the forests. Since the collapse of the FSU, coal and LPG (liquified petroleum gas) have become unaffordable for many people and organizations. This has resulted in a sharp increase in reliance on traditional fuels, particularly firewood (dung cakes are also used). Uncontrolled fuelwood cutting has increased dramatically--further contributing to the process of deforestation. In addition, up to 500,000 cubic meters of wood were once imported annually from neighboring republics. These supplies are also greatly curtailed, although polewood and timber are still needed. Illegal harvest will increase over the next few years, if inexpensive energy and timber sources are not developed. 3.29 Forest policy is made by the Forestry Department, which used to be an independent State Committee, but recently has been integrated into the State Committee on Environmental Protection (Goskompriroda). Since 1948, when the Soviet Union recognized the serious state of depletion and degradation of the forests in Kyrgyzstan, policy has focussed on forest protection and the reforestation of state lands. Five national reserves were created, and today two parks exist covering 115,000 ha. New legislation has been adopted by Parliament (Forestry Code, 1993) with the objective of protecting the existing forests and increasing forest cover to eight percent of the country. 3.30 The administration of forests at a national level falls under the Forest Department, an executive agency employing about 2,000 people, and responsible for 2,573,000 ha of state land (14 percent of the country). In the past, up to 55 percent of the State Forest Land has been leased (without fee) to Kolkhoz, Sovkhoz, or neighboring republics as rangelands. At the local level, the Forest Department is represented by thirty-two Leskhozes ("forestry farms"), which manage 95 percent of the state forest land. The Leskhozes are organized into three Regional Directorates: Dhzalal-Abad, Issyk-Kul and Osh. Recently, as part of the process of fiscal decentralization, budgeted funds for the Leskhozes have been channelled through the Oblast administrations, giving the local authorities more discretion over the allocation of funds. As forestry is generally not a priority of local akims, Leskhoz funds have been subject to reallocation to other uses, resulting in funds reductions of up to 70 percent in some cases. 3.31 Forest management is undertaken by the Leskhozes guided by ten-year management plans which have been established with the assistance of foresters from Russia, Kazakhstan, or other neighboring republics. The Leskhozes are responsible for protecting the forest; they have their own nurseries and generally their own processing units. They are productive entities and members are involved in livestock- keeping and agriculture, as well as forestry-related activities. Although current local production efforts complement budget transfers from the state, income from them is not enough to make up for government budget cuts of up to 70 percent. The Leskhozes barely have enough money to continue payment of staff salaries, let alone carry out forestry activities. 3.32 Silvcultural practices are well established in Kyrgyzstan. Nurseries are typically 6 to 10 ha in size and contain a mixture of various seedlings which are planted bare-rooted in the field during March and April. Planting on mountain slopes is done manually, digging small terraces of one-by-two meters 1/ The Kyrgyzstan Energy Sector Review states 4.2 % of the country is forested, representing a standing stock of 23.5 million m3, consisting of 843,000 ha of closed forest and 2 million ha of dispersed forest. Background Papers: Natural Resources 81 (or 600 per ha) and planting eight seedlings per terrace. On gentle slopes and flat areas, furrows are ploughed, in which the seedlings are planted. The survival rate of plantations depends strongly on rainfall, which is often very unreliable, and on pressure from grazing animals. In the past, timber harvesting was often in the form of industrial clear felling, but this has now been banned. Sanitary and maintenance cuttings (thinnings) are still widely practiced. Felling is done either by chainsaw or axe, while transport of logs is by animal traction and by truck. 3.33 Wood production is very low. Official roundwood production is 40,000 to 50,000 cubic meters per year, and total production is estimated at not more than 80,000 cubic meters, of which a third may be from poplar plantations. By and large, this cannot supply the national needs, which are at least ten times higher. Most of the national consumption of timber was and is imported from other FSU republics on the basis of barter trade (for example, wood for meat). Reliable information on statistics for timber consumption is lacking. Fuclwood is currently the main wood product, due to the high demand fuel, and the generally low quality of the standing stock. 3.34 Sheep and cattle, which graze on forest lands, are the primary non-wood forest products. The Republic's forests also produce important quantities of fruits and nuts (such as walnut, almond, pistachio, apple. plum, apricot, cherry, and pear). In the South, several Leskhozes have their own fruit-processing units. Other valuable nonwood forest products are honey, particularly in the Dhzalal- Abad area, and game such as bear, wolf, the rare snow leopard, mountain goat, and the Marco Polo sheep. 3.35 The catchment protection function of forests in Kyrgyzstan may appear to be less important than in otlher countries due to the relatively low precipitation and its modest contribution to total stream flow (ten percent--most of the stream flow is melt water from glaciers). Furthermore, much of the precipitation is in the form of snow, with much less impact on the soil compared to rain. Nevertheless, forests have a strong regulating effect on the movement of surfacewaters, buffering both peak and low flow periods-- they promote storage of some of the water in the soil during spring melts and the slow percolation of water downslope to streams during drier months. In addition, the forests play an important role in the protection of steep hill slopes, by stabilizing the soils and substrate through their roots and surface litter. Maintaining forest cover on vulnerable slopes will reduce the likelihood of landslides occurring, and will potentially save lives and preserve productive lands. 3.36 Forestry research and education. Research is mainly done within the frainework of the National Academy of Sciences, and performed in three institutes: the Institute for Forests and Nut Culture in Bishkek; the Institute for the Biosphere in the South; and the Institute of Biology. Before independence, the Institute for Forests and Nut Culture had a staff of 103, including 38 scientists, and 5 laboratories and experimental stations, but budget cuts have reduced the staff by two thirds. Research is currently focusing on nut and fruit production, and spruce and juniper forests. Foresters in the republic used to be trained in neighboring republics. In 1993, two faculties were created in Dhzalal-Abad and Karakol, each of them potentially matriculating five forestry specialists a year. 3.37 The key management issue in the forestry sector is the on-going degradation of the forest caused by uncontrolled grazing by too many livestock animals, over-exploitation of the forest in the past, and insufficient planting and protection of new trees. Illegal cutting may be an increasing issue of concern, as well, due to the enornous gap between supply and demand for wood products such as firewood and construction wood. Wildlife habitat loss, increased soil erosion, and the occurrence of mud flows and land slides are directly related to the loss of tree cover. Background Papers: Natural Resources 82 3.38 External support for forest management. The Swiss Organization for Development and Cooperation (Intercooperation) is planning to provide funds and technical assistance to the forestry sector. Five projects have been identified, of which three are likely to be implemented, starting with a pilot phase in 1995. The five projects include: (a) Development of a forest information system as a basis for planning and monitoring the sustainable use of the forest resource; (b) Assistance to improve the development, implementation and monitoring of forest management plans for the (northern) spruce area; (c) Development of models for sustainable multi-purpose forest and rangeland management plans in the (southern) walnut and fruit tree area; (d) Reforestation activities in non-forest lands, irrespective of ownership, and assistance in the development of private timber processing units and wood products marketing; and (e) Support for training programs for forest technicians, by strengthening the two forestry schools, and provide field training and training courses for Forest Department staff and others. Recommended actions: 1 . Review and revise present forest policy, and combine forest production and protection objectives. The present policy emphasizes the protective role of forests in terms of soil conservation and habitat. Most management objectives, including reforestation, are directed to this purpose. This is highly commendable. Policy which focuses solely on the protective aspects of forests, however, does not adequately recognize the importance of meeting the national demand for wood products. If this demand is not met at least in part, uncontrolled cutting of firewood which is logistically and politically difficult to control, will increase the pressure on natural forests. Productive and protective roles can be combined in both natural and plantation forests on the basis of sustainable resource management. Production potential exists in the natural conifer stands, through selective cutting--although this requires special harvesting techniques due to the difficult terrain. Production potential also exists in planting fast-growing tree species such as poplar, both on the Leskhozes and other lands; 2. The local and international rangeland leases of forest department land should be re-evaluated, and either be revoked or strict controls should be instituted on the number of livestock permitted, based on the specific carrying-capacity of the leased land. 3. Leskhoz lands need to be characterized and zoned according to land capability, determined by soils, slope, aspect, vegetation (current and original), preservation value, and proximity to water and settlements. Currently, there is little separation between the forest and rangelands and the primary stress on forests is grazing pressure. Stocking rates, as prescribed in the Forestry Code should be strictly enforced to permit natural regeneration and increase the survival rates of planted seedlings. Livestock must be excluded from most of the fragile hillsides and upper watersheds managed by the Leskhozes. Background Papers: Natural Resources 83 4. Recognizing the extreme financial vulnerability of the Leskhozes, rinancial inputs are urgently needed at the Leskhoz level. Without a better economic base for these communities, further degradation of the forest resource base is unavoidable. Financial inputs are required for equipment purchase and maintenance, underwriting general operating costs, labor (for tree planting), and credit facilities. Many leskhozes currently collect non-wood forest products such as fruits, honey, nuts, etc. These products have potentially excellent regional markets, but short- term credit to pay for processing equipment, labor, transport and marketing is non-existent. Dramatic budget cuts require the leskhoz communities emphasize extractive activities (such as herding livestock), as forest management activities provide less income in the short-term. Until the state budget can fully support forestry personnel for timber and wildlife management, productive activities which do not degrade the forest--such as fruit and nut processing, and small wood processing enterprises (furniture and accessories--must be supported with funds, credit and technical assistance. 5. State funds for budgeted for forestry activities should be spent for that purpose as much as possible, even though they are administered through local government. With public budgets very constrained, local administrations may choose to place higher priority on productive activities with short time-frames, such as agriculture; income in forestry is often quite low or deferred for decades. It is understandable that authorities feel forestry funds are better spent on other purposes. A strong forestry program is essential to the long-term economic vitality of Kyrgyzstan, however, for the ecological and economic reasons discussed above. Forestry funds, which are already reduced in the Republican budget, should not be further eroded at the local level. Decentralization of forestry funds to the local level should occur in parallel with capacity- building of local forestry management. 6. Restructuring the forestry sector. Productive functions of the leskhozes before independence were heavily subsidized, and emphasized livestock production and forest extraction rather than sustainable forest management. As the Forest Department establishes its new priorities, several areas should be considered: (a) Information management. A first step in developing new policy directions is ready access to good information. Hand-maintained data exists on each of the leskhozes. This should be standardized and computerized such that it can be combined and shared among forestry experts. The database should provide information on standing stock, growth rates, production, and consumption, in addition to market information such as regional and world timber prices. (b) Segregation of short-term and long-term productive activites. Some of the productive activities of the Forest Department are clearly public forest management functions, while other activities lend themselves to a more private-sector type of management. For example, timber management has a low return for a number of years, and given the current condition of most of the forests, will be difficult to make a self-supporting activity in the short and medium-term. The Leskhozes are multi-disciplinary production units, however. In addition to timber management and harvesting, they are engaged in productive activities such as agriculture, collecting and processing non-wood forest products such as honey and fruit, and furniture-making. In a supportive policy environment, with access to credit, these latter activities will be easily self-supporting, and should be managed like private enterprises. Background Papers: Natural Resources 84 (c) The implementing activities of the Forestry Department must be separated from its regulatory and protective functions. For example, regulation of activities should not be performed by the same offices that gain revenues by performing the activities (i.e. permitting). 3.39 Although it may be possible for the Leskhozes to support long-term forestry with short-term productive activities, this would mean the Leskhozes are unfairly bearing the costs of a broad public good (sustainable forestry). Those aspects of land management in the Leskhozes with wide-reaching social benefits--such as watershed management, soil conservation, habitat protection, and long-term sustainable forest management--should be managed and supported separately from short-term productive activities. Short-term activities, however, must be managed in such a way that they complement the long-term goals. 3.40 Both short and long-term economic activities on forest department lands should be included as part of the National Forest Plan and national biodiversity strategy. Exactly how the administrative and regulatory division is made between self-sustaining and government support activities is a "mid-term" problem, which should be negotiated in stages among the Leskhozes, the Forestry Department and Ministry of Finance. C. WATERSHED PROTECTION 3.41 The key elements in watershed protection are site-specific. They include the geomorphology, soil characteristics, vegetation cover, rainfall intensity and landuse in a given watershed area. Watershed protection plays an important role in the prevention of soil erosion, floods, mud flows, land slides, siltation of rivers and sedimentation of reservoirs and irrigation schemes. 3.42 The largest river basins in Kyrgyzstan are the Amu Darya, Syr Darya, Chu, Talas and Sary- Djaz, with an average annual volume of 44.5 km2. The largest watersheds are the Naryn watershed (30 percent of the territory) and the Kara Darya (16 percent), both feeding the Syr Darya river, the Tarim watershed ( 11 percent), the Issyk-Kul watershed (8 percent), the Chu watershed (7 percent), and the Amu Darya watershed (7 percent). The flow of most of these rivers is regulated by reservoirs, both for hydropower generation and for irrigation. 3.43 The major source of water for most rivers in Kyrgyzstan is snowfall on the high mountain slopes which are covered in part by permanent glaciers. Streamflow originates primarily as melting snow and glacial ice. Rainfall contributes only 10 percent of total stream flow. Since rainfall, by its kinetic energy, is considered the most important factor in the process of soil erosion, one would expect little erosion in Kyrgyzstan because most precipitation is in the form of snow. The opposite case is true, however. The occurrence of soil erosion is high. 3.44 There are several causal factors in the high erodibility of the land. First, the intensity of rainfall events is very high at times. When large amounts of rain fall in a short period of time on compacted soils, the run-off and accompanying degradation can be severe. Second, the steep slopes and fragile, unstructured soils, often with a very thin humus layer, are naturally very susceptible to soil erosion. Areas in the lower and drier parts of the country have become desertified, and vulnerable to wind as well as water erosion. Finally, Kyrgyzstan's highly dynamic geomorphology, with frequent earthquakes, also predispose the land to large-scale displacement in the form of dangerous mud-flows and land slides. Background Papers: Natural Resources 85 3.45 Accelerated erosion, or human-induced erosion, is a critical causal factor to these slides. In many cases, it may be impossible to distinguish whether the slide or flow is caused solely by natural events (such as high rainfall in combination with seismic activity) or by human activities. Overgrazing is the primary human-induced activity of concern. Too many animals destroy the soil structure, and remove anchoring vegetation, aggravating any native predisposition the land has to move. Removing the vegetation also changes the temperature and water conditions in the soil and surface layers, perpetuating erosion- susceptible conditions. The numerous animal paths which zigzag across the slopes, can develop into gullies which undercut slopes and eventually cause flows and slides. The result is that evidence of landslides and mud-flows are visible throughout the countryside. In 1994, mud-flows and landslides caused the death of 99 people. Moreover, 637 families were subsequently resettled and another 1,203 families still need to be resettled. 3.46 The degradation of watersheds leads to increased surface runoff during rainfall events, carrying with it large quantities of sediment. The poor storage capacity of the soil also causes higher storm peaks and greater erosive power in the water, which is easily seen in the deep incisions made by many rivers, the piles of rocky debris, and their wide stream beds. A lower base flow also results when there is little soil storage capacity, forcing greater reliance on storage reservoirs to meet the Republic's water needs. The extent of sedimentation in downstream reservoirs caused by erosion and mud flows in the upper catchments is therefore of great importance, as the country is dependent on hydropower and irrigation. There have been reports of significant loss of reservoir storage capacity due to sedimentation, but there is little or no systematic data available on sediment transport in rivers. Since the long term effects of stream and reservoir siltation are often far reaching, both economically and environmentally, systematic monitoring should receive high priority. Reconunended actions 3.47 The most pressing issue in watershed management is the protection of slopes against erosion and massive land movement in the form of mud-flows and landslides. A management plan directed toward protecting watersheds by preventing erosion, and reversing the loss of vegetative cover will have a number of beneficial effects. It will enhance the productive capacity of the land, preserve lives, and lower the economic and social costs incurred by downstream sedimentation, reduced water quality, floods, droughts, and community dislocations. To develop a comprehensive watershed management policy, the following actions are recommended: a. Make a country-wide assessment of the present status of watersheds, including soil type, vegetation cover, level of soil erosion, and susceptibility to mud flows and land slides. Social and economic descriptions of communities in the watersheds should be overlaid with the biophysical data. Most of this information is already available--it simply needs to be brought together for purpose of comprehensive policy analysis. One or two key watersheds might be chosen as test sites to initiate this kind of inclusive and cross- disciplinary analysis. b. Initiate projects to rehabilitate the most critical watersheds, which may be achieved by revegetating steep slopes and reducing livestock pressure. These projects should be designed in conjunction with the communities currently engaged in productive activities on the affected land. c. Establish a long-term monitoring program on river siltation and the sedimentation of reservoirs. Background Papers: Natural Resources 86 3.48 In the long-term, it is strongly recommended that a single Ministry be responsible for integrated watershed management of all the upper catchment areas. Apart from soil conservation, protection against mud flows and land slides, and water conservation, this body would also be responsible for forestry, biodiversity conservation, and hunting regulation--all activities taking place primarily in the upper catchments. D. BIODIVERSITY CONSERVATION 3.49 Ecosystem diversity in the Kyrgyz Republic is naturally high due to the diverse landscape types and microclimates. Elevations vary from about 400 meters (1,303 feet) to 7,439 meters (24,177 feet), with a wide variety of habitats ranging from desert to broadleaf and conifer forests to high alpine ecosystems. The aquatic habitats consist of wetlands, perennial and intermittent streams and rivers, and fresh and salt water lakes, including the world's second deepest inland water body (Lake Issyk-Kul). The Western Teen-Shan have the broadest range of ecosystems (22 out of 24 classes); followed by the Inner Teen-Shan (18 classes out of 24), the Alai and Northern Teen-Shan (16 classes), and the Issyk-Kul and Central Teen-Shan regions (12 classes each). 3.50 As a result of the diversity of ecosystem niches, species diversity is also naturally high. There are, for example, well over 500 species of vertebrates including 83 mammals, 368 reptiles and 75 fishes, along with about 2,000 species of fungi, at least 3,000 insect species and over 4,500 species of higher plants. Table 3-1 lists the numbers of known and endemic species. Due to the great variation in altitude and moisture in the country, habitats that would be separated by hundreds or thousands of kilometers on a plain are juxtaposed, supporting significantly higher species richness than is found in neighboring republics. In addition, many of the plant and animal species are endemic to either the Kyrgyz Republic or Central Asia. These factors combine to make the Kyrgyz Republic a key site for biodiversity conservation in the region. 3.51 There is little information on the present status and trends of biodiversity in the country and the information that does exist is often contradictory. Nevertheless, about 10 percent of the mammals and birds found in the Republic are listed as endangered species in the Red Data Book, published in 1985. In total, 65 plants, 13 mammals, 33 birds, 3 reptiles, 2 fishes and 18 insect species are included. In actuality, these numbers probably should be much higher, because surveys are incomplete, and most wildlife and many plants have been severely depleted throughout the country. Research on the biodiversity of Kyrgyzstan began in the early 1800. Most of the existing data is in the form of inventories and taxonomic studies performed before 1990. 3.52 The network of protected areas include five Zapovedniki (strict nature preserves), which were established for nature conservation and scientific research, and hence not open to the public; two national parks, where recreation is permitted; and seventy Zakazniki (other protected areas), which include landscape parks, forest parks, zoological parks, botanical gardens and natural monuments. The Zakazniki protect particular species, preserve representative or unique natural sites, as well as provide conditions for "the organized rest [or relaxation] of people". The total area covered by these protected areas amounts to 558,700 ha, equivalent to 2.7 percent of the total territory. The protected area system captures only remnants or islands of several ecosystems. Most of the areas are too small to maintain viable populations of plants or animals within their borders. Some ecosystems are not represented at all. Table 3-2 lists the current protected areas. An expansion of the protected area network has been discussed. This would involve the creation of seven more National Parks and eight more protected areas. Although this expansion is needed to better protect habitats, the severe lack of funds makes any expansion in the near future unlikely. Background Papers: Natural Resources 87 3.53 Kyrgyzstan has not yet ratified any international conventions. The Government has expressed interest in signing the Biodiversity Convention, and following UNESCO's reconmuendation, one Zapovedniki, Sary Chelek Reserve, is part of the network of Man and the Biosphere reserves (MABs). The Issyk-Kul Reserve is included in the RAMSAR convention. Table 3-1: Diversity of the Biota of the Kyrgyz Republic Biota # of Species2 Species Richness3 World Kyrgyz World [ Kyrgyz Algae 70,000 300 1.4 1.5 Protozoa 40,000 130 0.8 0.7 Plants 350,000 4,500 7.0 22.6 Fungi 100,000 2,000 2.0 10.1 Vertebrates 45,000 500 0.9 2.6 Round Worms 15,000 700 0.3 3.5 Mollusc 70,000 50 1.4 0.3 Cancroids 40,000 100 0.8 0.5 Spiders and ticks 75,000 250 1.5 1.3 Insects 950,000 3,000 18.0 15 .2 2/ Number of known species, rounded to nearest thousand. 3/ Number of species per one thousand square kilometers. Background Papers: Natural Resources 88 Table 3-2: National Parks and Protected Territories Name I Oblast Year Area (x00 1 Description _ __ I I__| ha) (Altitude, species, ecosystems) National Parks Ala-Archa J Chui 1976 2.2 1600-4875 m. / 600 species of plants, 26 mammals, 240 birds Kyrgyz-Ata Osh 1992 1m. /600 plants, 26 mammals, 160 birds State Reserves Issyk-Kul Issyk-kul 1948 18.9 1607m. / 120-150 species of higher plants, 12 fish, 240 birds Naryn Naryn 1983 59.9 2200-4320m. / 50 mammals, 1870 plants Besh-Aral Dzhalal-Abad 1979 63.2 1100-4000m. / 1200-1500 species of plants, 150 birds, 45 mammals Sary-Chelek Dzhalal- Abad 1960 23.8 1200-4247m. / 981 plants, 157 birds, 40 mammals Karatal- Janyryk Naryn 1994 5.9 2100-3800m. / Central Teen-Shan Ecosystem Complex Sarychai- Ertash Issyk-Kul 1995 72.0 3000-4500m. / High mountain steppe Special Nature Reserves Kemin Chui 1966 0.6 1400-1500m. Ak-Suu Chui 1975 7.6 1600-4331m. / Krygyz Range ecosystems Chichkan Talas 1972 36.0 Gulcha Osh 1972 0.5 1500-1800m. / Riverine Ecosystem Teploklu- chensky Issyk- kul 1972 29,0 2000-5000m. / North-West & South-East slopes of Terskey Ala-Too Djety-Oguz Issyk- kul 1958 31.6 2000-5000m. / North slope of Terskey Ala-Too Djarla- Kaindy Chui 1976 18.7 1300-4416m. / Kyrgyz Range Ecosystems Tup Issyk - Kul 1976 19.1 2000-4500m. / Natural boundary Chelindy-Sai--headwaters of Tup Ak-Buura Osh 1976 13.6 1 100m. / Water-meadow ecosystem of Ak-Buura River Kirovskiy Talas 1976 28.7 2000-4488m. / Ecosystem of Talas Ala-Too Kochkorsky Naryn 1977 2.3 1800m. / Water-meadow of Kochkorka River Toguz-Toro Naryn 1975 26.6 1200-2300m. / Ecosystem of Baidoshtol River Chandalash Dzhalal- Abad 1977 44.1 2500-3000m. / Ecosystem of Chatcal valley Yassy Dzhalal- Abad 1977 6.2 1012m. / Water-meadow ecosystem of Yassy River Background Papers: Natural Resources 89 3.54 Administrative oversight of the protected area network has recently been assumed by the Department of Protected Areas under Goskompriroda. Previously, the reserves were administered by the State Forestry Inspection. The National Parks and most of the other protected areas were under the regional authorities or other organizations such as the National Academy of Science. The Department of Protected Areas has little actual authority over the protected areas. The regional authorities, through which the budgets are channelled, have more power, sometimes imposing other revenue-generating objectives onto the protected areas such as firewood production or livestock grazing. The department has a staff of four people in Bishkek. The five reserves that the Department considers under their jurisdiction have a total field staff of 219. As a result of this shortage of staff and funds, comprehensive policy is not developed, and true protection is not enforced. A national commitment to a Biodiversity Conservation Strategy is badly needed. 3.55 Management of the protected areas is highly autonomous. Each protected area has a Director and a support staff of rangers and wardens ranging from 5 to 30 people. Management and protection of the areas depend strongly on the influence of the director and the regional authorities. Local communities are usually not involved in management planning. The most serious management problems are lack of logistics (transport) and finances, particularly in the larger and more remote parks in the mountains which are difficult to reach. In addition, lack of local community commitment and economic necessity create pressures in the form of livestock grazing, legal and illegal hunting, and firewood cutting--all of which can seriously threaten conservation goals. 3.56 For most wildlife, the relatively small and unconnected protected areas do not offer sufficient protection from habitat loss and hunters. Most big mammals need large territories for feeding, and corridors to move to different areas depending on the season. Wildlife--except in remote areas--quickly feels the impact of human activities. Loss of habitat (deforestation), competition with livestock, and hunting and poaching have caused the number of wild animals to shrink. The most critical situation involves protecting the habitats and populations of the most valuable (both economically and scientifically) species of big mammals, such as mountain sheep, djeyran, mountain goat, snow leopard, teen-shan bear, lynx and Menzbir's marmot. 3.57 Hunting is allowed on 14.9 million ha of land, i.e. in 75 percent of the country. Of this area, 11.3 million ha are under the manageinent of 89 hunting enterprises. Of these, 72 hunting enterprises are under the Central Administrative Board of Hunting and Hunting Supervision in Goskompriroda, which was formerly the Hunting Association under the Committee of Forestry. The other 17 are divided among several agencies, clubs and associations, such as the Military, the Union of Consumers, and the Forestry Department. By the end of 1990, the staff of these enterprises numbered 493 persons. Licenses to hunt may be issued by Goskompriroda and by each of these enterprises, as well. 3.58 The primary game animals are capricorn (mountain goat), Marco Polo sheep, roe deer, wild boar, wolf, marmot, fox, badger, musk-rat, hare, weasel, squirrel, himalayan snowcock, chukar partridge, pheasant, quail, pigeon and waterfowl. Hunting used to be a privilege particularly for party members of the FSU. Nowadays, it attracts wealthy western people, particularly from the USA, Mexico, Germany and Arab nations. The price for hunting one sheep is equal to about US $19,000. It is generally hoped that the number of game will increase with the continuing decline of livestock. Apart from trophy hunting, animals like fox, marmot and wolf are hunted for their fur. Poachers are mainly interested in fur species, snow leopard and bear. Background Papers: Natural Resources 3.59 Wildlife stock management is done through habitat improvement, breeding, feeding in winter time, placing salt licks and transporting animals from densely populated areas to sparsely populated areas. Animals are counted annually in January and February. This count serves as the basis for determnining the hunting quotas for each species, which are generally about 10 percent of the population. Another important management task is control of the area, i.e. apprehension of poachers. In 1994, there were about 1,000 cases of poaching reported to the Hunting Board. Following prosecution, 30 percent of the fine goes to the individual who apprehended the poacher. 3.60 The primary issues in biodiversity conservation are the continuous loss of habitat and the lack of effective protection granted in the protected area network. Related issues are the continuous pressure of hunting and poaching, and the ubiquitous presence of domestic animals, which are in direct competition with wildlife. Recommendations: 3.61 The following actions are recommended to promote biodiversity conservation: * A national strategy for biodiversity conservation should be prepared, which articulates its relationship with other sectors of the economy, such as forestry, farming, and tourism. Through a national strategy, the specific (and varying) goals of the protected area network would be clarified, and the attention of international agencies and donors4 focussed on the areas of most utility to the conservation and development goals of the Republic. * Alliances should be formed with the international community in efforts to protect biological resources, by signing the Convention on Biodiversity, CITES, RAMSAR, and other international treaties, agreements and protocols directed to this end. * Lands under both complete and partial protection should be expanded to create a network of habitats designed to protect both critical and representative species and communities. These lands should be located both in rural/wilderness areas and in cities, towns and villages as "micro-reserves"--preserving green spaces in settled areas which have naturally fallen outside of economic activities. Migration corridors should be established among the protected areas, through these micro-reserves. Under the current network of protected areas, critical ranges and habitats are not adequately conserved. * The hunting license system should be reviewed and a populations of all the hunted and endangered animal species thoroughly counted--including noting the number of breeding pairs. Based on this count, critically re-assess the allowed take. Although competition 4/ Actions by donor organizations in this field are as follows: The World Bank is assisting the Kyrgyz Republic, Kazakhstan and Uzbekistan on the conceptualization of a regional biodiversity project; and NABU, a German NGO, is supporting the establishment of a Man And Biosphere (MAB) reserve (UNESCO) which would cover the catchment of Lake Issyk-Kul, including the Eastern Teen Shan mountains (70,000 sq.km. or 35 percent of the country). At present, NABU is researching the area and the possibilities of conservation zonation. At a conference organized in Cholpon Ata, Issyk-Kul (July 21-23, 1994) a resolution was accepted, stating amongst others that 'following the recommendation of the Rio Conference, and as contribution to Agenda 21 and the Convention on Biodiversity, the Teen Shan mountains are proposed as a World Heritage site." The German Association for Technical Cooperation (GTZ) is financing the project. Background Papers: Natural Resources 91 from livestock may be decreasing, the prevalence of guns and lack of enforcement capabilities mean that competition from humans may be increasing--it must be assumed more animals are actually killed than allowed for in the quotas. In addition to reducing animal populations, the emphasis on hunting makes wildlife wary and difficult to observe by others, reducing the possibility of attracting the very large world-wide market of tourists who want simply to observe and photograph wildlife. * Improve enforcement of protected area boundaries through cooperative management with the communities and individuals living legitimately within or adjacent to the areas. Not all economic activities are in conflict with park management. Extensive grazing and fuelwood gathering (including sanitation cutting) often is in conflict with biodiversity conservation. Intensive activities (animal pens and agroforestry) in strictly confined areas, and controlled levels of harvest of non-timber forest products, may not be in conflict. The local population must be involved finding solutions for the existing park- population conflicts. Parks management must also be able to enforce the agreements. * Formal structures should be established to integrate public input into environmental decision-making, and participation should be actively elicited during environmental assessments of development plans and projects. Although the Nature Protection Law requires participation, no responsible authorities, procedures or guidelines have been established to implement the requirement. As a result, public participation in environmental decision-making is minimal or absent. - A public education campaign should be launched which focusses on the importance and uniqueness of the biological resources of Kyrgyzstan, emphasizes their fragility, and encourages creative ways of managing gardens, fields and forests to preserve the native species of the Republic. E. TOURISM 3.62 The Kyrgyz Republic is interested in developing its tourism sector, particularly ecotourism. Ecotourism refers to visits made for the purpose of seeing and experiencing natural and cultural heritage. It includes what is also known as adventure tourism, such as trekking, mountaineering, horse-back riding, white water rafting, and skiing. It also includes nature study, wildlife viewing or photography, and visiting national parks and protected areas, and cultural and historical sites. The basic characteristic of ecotourism is that it is non-extractive: it does not consume the resource on which it is based (as opposed to hunting, for examnple). Moreover, ecotourism may be an important source revenue for the funding of protected areas. 3.63 Kyrgyzstan has a good ecotourism potential, due to its outstandingly rich natural heritage, and long and interesting cultural heritage. Its magnificent mountains are second only to the Himalayas, and the many deep blue lakes and wild clean rivers, as well as colorful valleys and deserts, are unrivalled in scenic beauty. The country's wildlife is unique and diverse, although difficult to observe because of intensive hunting. The country is rich in cultural history. The ancient silk route winds through the country, and monuments and archeological sites from diverse cultures and historical periods dot the landscape. Osh, a key point on the silk route, is one of Central Asia's oldest towns. Other prerequisites for successful development of tourism, however, such as infrastructure and services, are either missing or insufficient. Background Papers: Natural Resources 92 3.64 Tourism development has been fragmentary. During the Soviet period, it was concentrated mainly around Lake Issyk-Kul, with its beaches, and beautiful views of the mountains. There are numerous hotels along its shore, as well as health resorts and sanatoriums associated with warm springs and medicinal mineral waters. In other parts of the country, tourism development is virtually absent, with the exception of some Zakazniki for local recreation. Until recently, many parts of the country were closed even to FSU residents: nature reserves were not open to the public, and national parks were only for special visitors. Kyrgyzstan was a remote part of the USSR, and it was extremely difficult for foreigners to visit: as a result, it is virtually unknown to most people, and it is far off the normal tourist routes. 3.65 Trophy hunting has been an important form of elite tourism in Kyrgyzstan, both during and after the Soviet period. Licensed hunting is allowed on 75 percent of the territory. It is possible to prey on animals which are protected in other parts of the world, such as Marco Polo sheep, Siberian mountain goat, and wolf--and foreign hunters are coming increasingly from the West. 3.66 As yet there is very little tourism of any kind in the Republic--much is needed to provide the infrastructure, facilities and services which tourism requires. Tourism services and infrastructure are poorly developed. For instance, although the country has an extensive road network, it lacks maintenance. Other services, such as foreign language-speaking guides, bed-and-breakfasts, and clear administrative procedures for travel around the country (such as tourist visas, and internal travel permits) are insufficiently developed. Investment should be aggressively pursued, however, as development of a well-organized tourism industry could aid efforts to conserve protected areas, stimulate rural economies in some areas, and directly impact the national economy by generating hard currency revenues. 3.67 There is widespread concern about the negative environmental impact of tourism on nature. Although tourist traffic can be destructive if not carefully planned and controlled, the impacts of trail erosion, and uncollected trash are generally minimal compared to consumptive uses such as uncontrolled grazing, firewood cutting, hunting and agriculture. The impact of visitors depends on the carrying capacity of the resource and the number and behavior of the visitors. Natural areas can absorb surprisingly large numbers of people, provided that proper management measures are taken. For example, visitors may be deliberately concentrated in relatively small areas ("honey pots") with support services and park guides, while most of the wilderness areas remain visited only by technical climbers or naturalists, perhaps by special pernit. In this way, the parks and preserves can combine conservation with intensive visitation, and create both national and international interest in the protected areas system. 3.68 Visitation is an important factor of both cost and income. In other countries, such as the USA, 10 percent of the 1992 budget may be spent by the Parks Service on nature management, and the remaining 90 percent on guiding visitors in their enjoyment of the areas. Although visitation imposes a burden on the Parks Service, costs such as patrolling and road maintenance can be offset by visitor and business concession fees. Furthermore, parks and preserves can generate substantial income for the local and regional economy through direct and indirect linkages with other enterprises impacted by the tourism industry. It must be emphasized, however, that tourism is not a panacea for revenue and employment generation: it requires proper marketing and substantial investments in infrastructure, facilities and services. Background Papers: Natural Resources 93 3.69 The principal environmental issue in the tourism sector is the current over-emphasis on hunting tourism. Wildlife is scarce, and up-to-date inventories of threatened and endangered species are incomplete. Until realistic plans for species recovery and natural resource management are in effect, opening the country to foreign hunters will have two negative impacts: the numbers of wildlife will further decline, and the remaining (scared) wildlife will be very difficult to observe by non-hunting visitors--thus reducing the ecotourism potential of the country. 3.70 The European Bank for Reconstruction and Development (EBRD) is preparing a project to support the efforts of both the public and emerging private sectors in Kyrgyzstan to develop its tourism potential. EBRD will focus on supporting small and medium enterprise initiatives which are essential for tourism to grow. The EBRD tourism project has two objectives: (i) to promote Kyrgyzstan as an ecotourism destination, centered on unique, unspoiled sites while assuring their protection; and (ii) to promote local culture and protect the national heritage by reviving and marketing traditional handicrafts. Both of these objectives will support the development of private enterprises such as small hotels, rest camps, tour operators, travel agencies, guides, park wardens, and vendors for handicrafts, books and maps. The proposal focusses on development of the Ala Archa National Park. Recommendations: 3.71 Recommended actions include the following: * A tourism master plan for the international market is needed to focus internal and external initiatives on the types of international tourism Kyrgyzstan can most easily develop in the near term (ecotourism), and the type of institutional and physical infrastructure needed to promote it in its most likely markets. A plan is currently being developed, funded through the IFC. * Social and environmental impact procedures should be established which must be adhered to by all sponsors of proposed tourism projects--both national and international. 3 The hunting license system should be reviewed and placed under the jurisdiction of one agency. Hunt quotas should be adjusted to promote rapid population recovery. This is critical to assure the long-term viability of a prosperous ecotourism industry. Background Papers: Natural Resources 94 A Brief Culeraw fntory The Kyrgyz Republic has a complex cultural history, woven from the movements of the great nomadic groups of Central Asia, and marked by the fortresses and caravanserai of warring tribal groups and ancient trade routes. The current nation is comprised of an ethnic mix of Kyrgyz, Russians, Ukrainians, Uzbeks, Uigurs and Dungans (Chinese Muslims). The Kyrgyz language has been the official language since 1993, but most of the urban residents speak Russian. Kyrgyzstan was first inhabited about 300,000 years ago, during the Lower Paleolithic period. Neolithic settlements have been found in caves near Naryn and around Lake Issyk-Kul. As early as 1,000 B.c., Kyrgyzstan was a key link in the transcontinental trade routes. Later, during the Middle Ages, it was one of several routes for the Silk Road that linked Eastern Europe and China. Zoroastrian, Buddhist, early Christian and Muslim artifacts have been found beneath city of Tokmok, which was a strategic setdement along the Chu River for the trading and warring tribes who roamed the region. Tokmak was one of the few sites in the region that was not destroyed by Genghis Khan during his eleventh century rampage. The city of Osh,at the head of the Fergana Valley, is the site of one of the oldest trading cities in Central Asia, and was the regional center for Islam in the Middle Ages. Although the existence of the Kyrgyz as a people dates to at least 200 B.c, they did not migrate to the land called Kygyzstan untl about the 16th century. They are of Turkic-Mongol stock, and trace their origin to the region around the Yenisei River in southern Siberia. The Kyrgyz are a pastoral nomadic people with strong tribal traditions--their name is derived from Turkic 'kyrk + yz", or the Forty Clans. Their history on the land has been tomn by wars, particularly with the lowland Uzbeks. Four times between 1845 and 1873 the Kyrgyz were defeated by the Uzbeks (Kokands). This strife led the Kyrgyz to ally with the Russians, who colonized the region, and confiscated the better agricultural lands in the valleys. Land conflicts, combined with compulsory military service in the Russian army led to a bloody revolt in 1916, during which up to one-third of the Kyrgyz fled to neighboring countries. In 1924, however, the Soviet regime established Kirghizia, and in 1926 declared it a Soviet autonomous republic, recognizing the Kyrgyz as a nation. The majority of the Kyrgyz remained nomadic until forced to settle during Stalin's push for colleeivization in the late 1920's. The people went first into kyshuiks, transitional villages, and then into cities, towns and onto collective and state farms: sovkoz, kolthoz and leskhoz. Not all Kyrgyz were successfully settled, however, and many among those on the sovkhoz, kolkhoz, and leskhoz are only partially settled still, moving seasonally with their herds into the high mountains in the spring, summer and fall. The nomadic lifestyle may have been constrained during Soviet domination, but stockraising is still the basis of the economy. Only a small number of people have adopted industrial employment. The Kyrgyz have rich resources to share with the world, as this new stage in their history begins. The Kyrgyz cultural arts remain strong. Both women and men are skilled horseback riders, and fine leather goods, silver jewelry, and briuiant felt carpets arc still crafted. They have a long tradition of story-telling and songs, accompanied by the akomuz, a stringed instrument. The Manas epic poem is one of the longest poems in the world's traditions. It is a million lines long, and is said to have curative properties for the people who listen to it. Backgroung Papers: The mining 95 and Metallurgical Sector 4. THE MINING AND METALLURGICAL SECTOR 4.1 The Kyrgyz Republic is located within the Central Asian Fold Belt in the Teen Shan Mountain System formed by the collision of the Siberian and the North Chinese, Tarim, Karakul, Tadzhik and Kazakhstan-North Teen Shan plates. The country is still seismically very active. As a result of its complicated geological history, the Kyrgyz Republic possesses rich and diverse mineral resources, including gold, silver, antimony, mercury, uranium, and a range of base metals and rare earths. 4.2 Mining and metallurgy (M&M) are important sectors in the Republic's economy, accounting for 10 percent of industrial production and 11 percent of the workforce in 1992. The minerals produced include antimony and antimony oxides, mercury, gold, uranium oxide, minor rare earths (lanthanum, cerium, dysprosium, erbium, gadolium, holmium, etc.), molybdenum and calcium fluoride. A mine and processing plant for tin and tungsten is currently under construction. 4.3 The mining and metallurgical sector is facing serious financial and market-related problems. The sector was developed oriented to the traditional markets of the FSU, which have now collapsed. Under the FSU, for example, uranium was a critical strategic asset and in high demand for the military and energy program. Since independence, uranium operation has ceased, with the exception of the processing of uranium oxides at Kara-Balta using imported concentrates. Although the Republic has a significant world and inter-republic share of the antimony and mercury trade (13 and 20 percent respectively), the market is small. In addition, the world markets for rare earths, tin/tungsten, and molybdenum are depressed, and the future of these industries is not promising. Gold production is the only sector which is attracting notable interest on the part of foreign investors. The development of commercial gold deposits in joint venture with foreign companies is being considered, and further exploration for bulk deposits is likely. 4.4 The cost of energy, which is often 50 percent or more of the cost of production, must be considered in any analysis of this sector. The Kyrgyz Republic is dependent on other states of the FSU for most of its oil and gas supplies. With the constriction of supplies from the other republics, and the increase in demands for hard currency payments for fuel, the costs of energy have risen over sixty-fold, reducing profitability in a sector which was already suffering from inefficiencies due to antiquated technologies and the departure of skilled technicians and managers after independence. In addition to these concurrent factors which make the transition to a free market economy especially difficult, the majority of the senior and middle level managers are unprepared for the adjustments required by the changing economic environment. 4.5 Environmental Concerns. The mining and metallurgical sector is expected to meet the cost of on-going pollution control, and site rehabilitation after productive activities cease. Although there are extensive standards and regulations governing the M&M sector, established during the Soviet period, mining in the Kyrgyz Republic has neglected environmental, safety and occupational health standards. Norms existed but were often ignored, and environmental monitoring virtually ceased over the last few years. The current severe cash flow reduction diverts attention from environmental problems, and probably means even less control over polluting operations. 4.6 The area of land directly damaged by mining works is estimated to cover 3,700 hectares; the volume of mining wastes is estimated at 43 million cubic meters. Mineral smelters release sulphur dioxide, arsenic and other pollutants into the atmosphere. Mines and metallurgical plants also produce large quantities of solid wastes. In particular, sulfur is commonly associated with mineralization in the Kyrgyz Republic, and therefore it is also associated with the waste products from beneficiation processes. Backgroung Papers: The mining 96 and Metallurgical Sector Combined with moisture, oxygen and bacterial activity, dilute acid is generated. This acid leaches the waste rock or concentrate residue, drawing into solution some of the remaining mineral fractions. T'his mobilizes the metal salts, enabling them to be flushed out of the waste concentrations in rains or floods, contaminating surface water run-off. Eventually these contaminants make their way through the natural water drainage system, causing widespread but diffuse water pollution. The rivers are fast-flowing in the specific geographic regions where this mineralization occurs, and they flow into major inter-republic river systems. Although most of the drinking water supplies in the Kyrgyz Republic are drawn upstream from pollution sources, it is possible for contaminated water to make its way into irrigation canals, which are used for washing, cooking, recreation, and livestock, as well as for crops. 4.7 In short, few of the waste deposits from mining operations or metallurgical processes are adequately controlled. Almost all can be the source of diffuse air or water pollution, and in some cases toxic elements and reagents may migrate through the food chain. Examples of these pollutants include mercury compounds, arsenic, fluorides, and sulphur-based compounds in association with many base metals, and radiation from uranium and thorium waste materials. The extent of pollution from these sources still needs to be accurately assessed to determine the how serious the problem is. It is certain that to a greater or lesser extent, pollution is occurring and will continue. A comprehensive database must be acquired to assign priorities and to determine the cost of imposing standards and cleaning-up requirements. 4.8 The Haidarkan and Kadamzai Combinats alone are believed to have produced millions of tons of wastes, which contain hundreds of thousands of tons of mercury and antimony compounds, arsenic, fluorides, a wide range of sulphur-based compounds of heavy and base metals, and radioactive contamination from uranium and radium. Infiltration of toxic effluents into the air and ground water is strongly suspected at these two Combinats and at Orlovsky Combinat. The Sanitary and Epidemiological Service has data indicating the presence of mobile toxins in the environment and in people around the combinats--the highest rates of infant mortality and children's morbidity are found in the immediate areas. Overall, however, chemical mobility, epidemiological and ecosystem health data are scattered or non- existent, and it is impossible at this time to accurately assess the true extent of environmental damage associated with the sector. 4.9 Likewise, it is not possible at this time to determine the nature or extent of problems association with radioactivity around uranium mines, discard dumps, and active areas such as the coal mine at Kadzhy-Sai. Table 4-1 summarizes the discussion of hot-spots associated with mining activities which follows. The closed uranium mine at Kadzhy-Sai, adjacent to Lake Issyk Kul, is of interest in light of plans to develop the lake as a tourist center. Sites such as the uranium oxide combinat at Kara-Balta have been called by local experts "clear and present dangers to the health and safety of numbers of people". For most sites, however, insufficient information is available to accurately determine environmental conditions within and around the combinats. Environmental managers do not exist at each combinat-- usually the staff engineers are responsible for environmental controls along with other duties. In addition, the surveys of the sector which are readily available are not sufficiently detailed to serve as the basis for serious recommendations. Unfortunately, the lack of data makes any statement about conditions at sites controversial, but the absence of environmental oversight also makes the existence of hazardous conditions likely obsolete, poorly maintained or non-existent. Support may be needed to meet the cost of obtaining modem equipment. Backgroung Papers: The mining 97 and Metallurgical Sector Table 4-1: Hot-Spots related to Mining Activities' Site Primary Product Problem J Significance Kata-Balta Combinat Uranium Oxide (i) Transshipment of hazardous materials; (ii) (i) Possible accident Molybdenum suspected leaching of toxins into the groundwater; (ii) potential wide-spread low-level Rhenium (iii) radioactive dust blown from tailings surface. ecosystem and human health Gold degradation Former Uranium mine: Uranium ore (i) Unmonitored radio-active wastes located within Potential health impacts on proximate Min-kush settlement a seismically unstable, flood plain area; (ii) site communities including Min-kush located within the watershed for the Kekemeren (12,000 pop.), and village (2,000 River and Toktogul reservoir. pop.) on mine property. Former Uranium mine: (i) Uranium ore in association (i) Site is proximate to Lake Issyk-Kul -- Broad-scale public health and Kadzhy-Sai settlement with brown coal; (ii) Current insufficient containment of run-off exists, and ecosystem impacts associated with coal extraction by private unmonitored run-off from waste occurs; (ii) Lake radon. enterprise. waters and bottom mud contain low-level radioactivity; (iii) contaminated metal from old mine machinery is being salvaged and sold; (iv) unregulated private sale of radioactive coal for fuel occurs. Former UJranium mine: Uranium ore Radioactive tailings dump, including toxic Erosion is threatening to carry Tuyuk-su chemicals and reagents. materials to the Tuyuk-su River, with associate broad-scale, low-level impacts. Kadamija combinat Antimony and Antimony Waste concentrates associated with sulphides and Public health impacts including (settlements of Kadamjay Oxides arsenic (As, SO,, and NO.) released into weakened immune systems' and Terek-Say) atmosphere. Metals--Au, Zn, Ag, and Pb--also associated wastes. Migration of toxic effluents into ground water. Haidarkan Combinat' Mercury, mercury (i) Toxic effluents containing antimony, mercury Mercury compounds locally mobile in (settlements of Haidarkan, compounds, and calcium and mercury compounds infiltrating ground water vegetation. 29% of the local residents Chauvay, and Uluu-Too) fluoride mined fmm wet and migrating to the Chauvay River; (ii) water found to have mercury in their surface and underground pumped from the wet mine is preferentially used systems; 26 % of the workers suffer operations in local agriculture; (iii) Stack emissions (CO, immune system deficiencies.' SO2, Hg, F, and NO.) exceed standards. Potential broad-scale ecosystem impacts. Orlovka Combinat Rare Earths: thorium-bearing Thorium-bearing wastes, cadmium, moybdenum, Contamination of 20 km2 by (The Kyrgyz Mining & lanthanum, cerium, Pb, Cu, Zn, Be, and others. radioactive waste waters; human health Metallurgical Plant) dysprosium, erbium, impacts through cultivation of the land (settlements of Orlovka, gadolium, holmium, etc.; (grain and potatoes) and building Kashka, Ak-Tyuz village, zinc and lead materials; toxic levels of lead and llyich State Farm, and other heavy metals found in children Kichl-Kemin Village) l Makmalzolto Combinat Gold: both vein and open pit Saturation of the dumps containing cyanogens (Makmal) l 1/ This table is intended to be representative of the type and extent of current problems associated with mining wastes--it is not intended to be all-inclusive. 2/ Local consultant's report. 3/ Also referred to as Khaidarken (local report). 4/ Per local consultant's report. Backgroung Papers: The mining 98 and Metallurgical Sector 4.10 Targeted interventions in the mining and metallurgical sector should be decided only after generating scientific evidence for hazard assessments. Funding should initially be found for monitoring equipment. In some cases, such as seismic testing, it may be more cost-effective to lease the equipment. Monitoring programs should focus on air and water pollution analyses and measurements of local and spread radioactivity (the latter can be effectively and quickly accomplished using airborne methods). Rock dumps, residue dams and waste impoundments must be investigated for integrity and stability. In the absence of reliable data, this base data substantiation phase is essential to plan objectively and should not be by-passed. It is an important cost-saving step, as the information gathered will help narrow spending priorities. On phase one information should be collected and assessed to prepare proposals for phase two -- defining remedial measures. Some sites will likely be identified as urgent, requiring priority action. It must be emphasized that any economic cost/benefit analysis applied to proposed actions in this sector should be augmented by factors such as safety, risk and hazard. Hot-Spots in the Mining and Metallurgical Sector 4.11 There are several critical "hot-spots" identified in the mining sector at the site of current or former mines and metallurgical plants. Six of the sites are discussed below, including Kara-Balta, Min- kush, Kadzhy-Sai, Kadamzai, Haidarkan, and Orlovka. There are additional uranium, coal, gold, and other open pit and underground mining sites around the country for which there is little information. Local and international experts believe there may be problems with miners' health due to exposure to toxics, as well as more generalized environmental problems resulting from improper disposal of mine and refinery wastes, distribution of contaminated water to agricultural fields and burning radioactive coal for fuel. Radioactive Tailings: Kara Balta Combinat and Associated Mine Sites 4.12 The Kyrgyz Republic has produced uranium for the FSU since 1955. As uranium was a strategic resource for the military program, all mines producing uranium were administered by the former Ministry of Medium Machine Building and enjoyed preferential treatment, including in their budgets. Concentrates from all local mine sources and neighboring states were sent to a central refining plant at Kara Balta, sixty kilometers west of Bishkek, where uranium oxide and molybdenum were refined. Local uranium mining has ceased (adding to the hardship in the mining sector) but numerous surface tailing deposits at remain at each of the many mining sites. The list of dump sites is documented and available. 4.13 The different tailings of concern include: * Waste rock from the mining operations usually containing low level radioactivity; * Low grade milled residues, usually contained in pond impoundments where concentrating circuits was the first stage of the process; * Waste residue; * Low grade coal of high ash content, originally mined for its association with uranium, now mined to use as fuel. Backgroung Papers: The mining 99 and Metallurgical Sector 4.14 The Kara Balta Uranium Recovery Plant. The Kara Balta plant was the central processing plant for uranium concentrates received from many mining centers in the FSU. The plant produced a refined uranium to a high degree of purity. Some additional products are also produced including refined gold. Due to the political and economic restructuring of the FSU and the depression of world prices in uranium, local mining has ceased, although concentrates are still shipped in from other sources for refining. Information on the concentration of uranium contained in the concentrates is not available, but all the leached residues were deposited at the site. The exact condition of the site is very controversial, but petitions to the government have been made by the surrounding community to clean up the site. 4.15 Superficial surveys of the Kara Balta site indicate that it has been operated in what appears to be a responsible manner. In particular, the tailings impoundment was viewed. Technically this has been carried out to a very high specification and is in a contained area with drainage arrangements. The whole design approach was to minimize liquid leakage and air borne dust. It is a large, well-run depository. Containments are currently being prepared for cyanide-contaminated residues arising from gold recovery. An independent and thorough survey of the area would be required to confirm that the tailing disposal dump does or does not pose a direct threat to human health. 4.16 Technical Staff. The laboratory facility which is the main analytical facility of the combinat is old and poorly equipped. The laboratory has a wet chemical analytical ability only. There were no modern tools such as spectrometers, atomic absorption, scanning X-ray analyzers, ICP's, etc. The laboratory staff, however, are experienced analysts, trained in the top facilities in Russia, and are the foundation for strengthening local capability on radiation monitoring, although it may be desirable to make the lab independent of the Kara Balta facility. Min Kush (Main Tailing Deposit) 4.17 This tailing deposit of 450,000 m3 covering 3.2 ha is stored in a valley through which a strongly flowing water-course runs. The water arises from melting snow and in the wet season is joined by a tributary which is normally dry. At that time, floods can occur. A dam controls downstream flooding. The tailings were deposited following the design developed by the appropriate experts in Moscow according to good civil engineering standards. The adequacy of the dam construction is unknown. The whole upper surface of the tailing was covered by a layer of fairly compacted soil about one meter deep. A grass covering has established itself. There is an underwater drainage collection system in operation. No monitoring of this drainage system has ever been undertaken, however. 4.18 Below the dam, a village of about 2,000 people live in the old mine property houses. Further downstream, the town of Min Kush has a population of about 12,000. A water diversion in a culvert over the dam discharges into a mountain streamn which eventually joints the Kekemeren river which flows into the Toktogul reservoir. The local populations has expressed great concern about this tailings dam. If there were to be a wash-away, the radioactive tailings could be carried into the river and contaminate the water with radioactivity for a great distance downriver. In addition, the dam is located in a seismically active area. There is a both suspected fault line above the dam and upstream a large area of loose-looking soil has been cut into by the tributary stream. Flood, flash flood conditions or a major seismic disturbance could precipitate an event of disastrous proportions. 4.19 The background radioactivity on the surface of the dump was within the maximum perrnissible limit of 100 mkrR/hr. In one small area where the top layer had been disturbed, the background count exceeded the permissible level. This could be easily corrected. No monitoring for radioactivity in the underdrainage system has ever been undertaken, which must be corrected. The opinion was expressed by local experts that radon gas does not leak up through the surface, but there is no evidence that this Backgroung Papers: The mining 100 and Metallurgical Sector has ever been checked, and therefore it may be an inaccurate conclusion. If radon does escape, it would probably migrate downhill. As the half life of radon is 3.8 days, decaying as a radioactive dust, it could contribute to low grade background radioactivity over a wide area. 4.20 The location of this tailings site has received a lot of attention and public concern because it is in a flood zone, the associated water diversion is poorly designed, and the site is potentially a serious hazard. Moving the dump by either transportation or pumping, to a site 13 km away, in very difficult terrain, has been proposed as a remedial measure. Alternatives to wholesale removal exist and should be considered. Recommendations include: * A full analysis of airborne and water born contamination must be conducted and a monitoring program established. This should include radon emission. The initial analysis must be integrated with any feasibility study for remedial actions. * People should not be allowed to live on old mine property. Although hardship would be experienced, the inhabitants of the village below the site should be relocated away from any radiation. X The question of dam location should be treated as a serious project on its own and deserves a separate feasibility study and recommendation of remedial actions. * The hydraulic limitations of the existing construction is the potential cause of a wash- away occurring. The existing installation does not appear adequate to safely convey flood waters away from the dam. Also, the unstable area above the tailings dam could create unsafe conditions. * An independent investigation, using local civil engineering experts should consider a river diversion well above the present collection system. This, coupled with a large canalized water course to one side the tailings site, designed to handle floods, may be the only remedial action necessary. * The tributary should also be canalized and be led into the main stream also well above the existing natural junction. * The need for the small existing water dam would then end and the area behind it could be filled in as suggested below. * The seismic activity in the area needs to be analyzed. A seismic survey and location of the fault needs to be undertaken by reliable geologists skilled in this technique. After this has been completed a decision could be made as to whether or not a landslide should be artificially induced. The soil arising from this could be used to fill the existing area immediately upstream of the existing inadequate dam wall. If the final decision is not to move the tailings, the landslide soil could also be used to supplement the covering of the surface of the tailings area to make it more impermeable. Backgroung Papers: The mining 101 and Metallurgical Sector Kadzhy Sai 4.21 The Kadzhy Sai uranium mine operated from 1949 to 1967, in close proximity to Issyk-Kul Lake. Uranium was extracted from brown coal (shale) with a high ash content. The coal was incinerated and the heat utilized for power generation. The uranium was extracted (leached) from the ash after incineration. It is not known what, if any, emissions occurred, as some precaution against this occurring must have been in place. The dump is small in volume, as the tailings are only ash. It is properly constituted, covered and there is only a low emission rate within limits. The state of the tailings is therefore considered satisfactory and not a hazard. Runoff, however, occurs and to contain this, a small earth pack dam has been constructed. This creates a pool area below the tailings to curtail leakage from the area. The small dam is well built, but if the holding pool below the dump fills after heavy rains, it could begin to undermine the main dump. The dam wall should be removed and a "swinuning pool" type containment should be provided to contain 100 year storm flood levels. 4.22 Adjacent to this dam is another covered dump containing some radioactive material and equipment resulting from the break-up of the uranium recovery plant. This was constructed in line with disposal standards current at the time it was built. The old mine is now overrun with dwellings, however, and local residents have discovered the buried equipment (electric motors for example). Radioactive waste materials are being retrieved and sold for scrap metal. This can not be allowed to continue. 4.23 Recommendations: (i) The Kadzhy Sai materials dump should be broken up and the equipment disposed of in a different way in accordance with current thinking. (ii) People should be re-located to areas further from any source of radiation. Although this may cause hardship, the public health costs and future political ramifications are likely to be greater. Perhaps the IAEA should be consulted for assistance, if this has not been done already. (iii) Another possibility may be to move the ash and equipment dumps to other sites. The volumes are not large. (iv) A general survey should be carried out to determine the exposure of the local population to direct and background radiation. There is a high concentration of people in the immnediate area who may be exposed to unacceptable levels radiation. 4.24 Uranium recovery from the coal at Kadzhy Sai was stopped when lower cost ore was discovered in other states of the FSU and sufficient uranium was being produced from other sources to supply the demand for the program. The brown coal still contains uranium and is therefore radioactive. The coal is still being mined by a private enterprise and the coal sold. The radioactivity in the coal is not removed. The entire operation must be curtailed and regulated. Sale of radioactive coal could result in wide spread radioactivity and radon emissions in homes where the coal is being burned or stored. It is urgent that this enterprise be investigated and regulated without delay. 4.25 The coal seam which is being mined underlies Issyk-Kul lake as well. At one time experiments were conducted to extract uranium from the water of the lake. It is therefore probable that a very low level of radioactivity is contained in the lake water. The mud at the lake bottom near the underlying seam is reported to be radioactive. This should be investigated as it may have implications for any future tourism development plans centered on water sports. Backgroung Papers: The mining 102 and Metallurgical Sector Antimony Mine: Kadamzai 4.26 The Kadamzai Combinat, located on the edge of the Fergana Valley, refines very pure antimony and antimony oxides. It provides 13 percent of the world's market--a significant share. The oxides are used in plastics and rubber goods; the metal in the automotive industries and steel alloys. 4.27 Only 10 percent of the ore used comes from the two mines nearby which are of very good purity. Twenty-five percent is bought from Tajikistan and Kazakhstan, and the balance from other sources in Russia. The transport costs add a heavy burden to the purchase price which the combinat did not have to pay previously. The new price structure of buying concentrates strongly influences the margins. Add to this the recent rise in energy costs and the now long standing depressed antimony free market price of products has in a short time critically upset the viability of the mine. The antimony mine is in an extremely weak position. 4.28 Some of the Russian concentrate of Siberian origin contains gold, further contributing to the Combinat's financial difficulties. Under the FSU, this material was stockpiled after antimony recovery, but now it must be returned to the source. Russia has been planning to build its own plant for two years, and for eleven months no Russian material has been available for purchase. The availability of processing material for purchase is very unclear, therefore. In addition, there has been no investment for 20 years, and the entire operation is based on outdated technology and equipment. If Russia persists in building a new plant, it could be the death of the mine. 4.29 To survive, a change to higher added value products is being assessed which is based on French technology. This would be based on alternative products sold to supply a growing market in the plastics industry with a larger margin potential. A similar but alternative product is also up for consideration based on UK technology. Production of very pure antimony metal could be a further possibility, but the very large capital expenditure to install a new electro-winning plant would be financially suspect without proper financial appraisal. Lack of experience in the free market and limited capabilities in the financial analysis, makes the decision procedure for Kyrgyz officials, and no feasibility study has been conducted yet. 4.30 Environmental Issues. All of the concentrates at Kadamzai are associated with various sulphides and some contain arsenic as arcenopyrite. Therefore, a pyro-metallurgical route, as is used to recover the antimony, causes real environmental and health problems. This was very apparent in the plant--to the extent that it may need to be condemned. Sulphur and arsenic fumes end up to a greater or lesser extent being emitted from the stack or in the plant. In both cases it is a hazard. As the ore contains about 0.6%, an estimated 250 tons are emitted annually. The exact containment of arsenic and sulphides in the process must be determined and a mass balance made--the materials must go somewhere in the system. Only antimony is accounted for in the recovery process--the excuse is lack of funds. 4.31 Apparently no monitoring of the stack discharge has ever been adequately performed and no monitoring at all is being conducted now. Therefore, the quantities of As, SO2, NOx or any other emissions are unknown. The same is true for metal or salt content in water discharged. Filtration from the toxic effluent dumps into the ground water are reported. Despite trench mitigation efforts in 1988, toxins have been traced 0.5 km away from the Vuadyl settlement. 4.32 In conclusion, little attention to care, maintenance or up-dating the technology used in the installation coupled with a depressed market and the inexperience in dealing with the fluctuations of free market, make this a poor and vulnerable operation. The following actions are therefore recommended: Backgroung Papers: The mining 103 and Metallurgical Sector * A complete sampling of airborne and water-conveyed contaminants must be made. Full analysis of the impurities in all water paths to the environment must be investigated. In metallurgical terms, a full plant audit is called for which includes mass balance analysis. * The Sanitary and Epidemiology station should carry out a similar assessment in the adjacent human population. The toxic hazard to operators within the extraction/recovery areas must be critical. The existing regulatory body (State Committee for the Environment) should be much more vocal as to what is being condoned in this plant, regardless of the lack of funds. Mercury Mine: Haidarkan Combinat 4.33 The Haidarkan Combinat provides 64 percent of the CBS production and 20 percent of the world production of mercury. Haidarkan Combinat previously exported to Russia Kazakhstan, and the Ukraine; in 1993, US, India and France joined its export list. The mercury it produces is used primarily in electrical and electronics industries, manufacturing chlorine and caustic soda, and manufacturing measurement and control instruments. It processes a complex ore, rich in mercury, and including some antimony. The ore types are associated with sulphide and fluoraspar (CaF2). 4.34 The sale of mercury to the FSU is now depressed due to the poor demand. Due to the availability and use of substitute materials, world mercury prices are stagnant or declining. The current level of mining cannot be sustained. Further, due to over staffing at reduced output, low grade of ore being mined and the steep rise in the cost of energy which accounts for 70-80% of the total production costs, the mine is experiencing severe cash flow problems. The operation is not viable at the current price of $1000 per kg. 4.35 There are plans to reduce the work force by about 30 percent. This will create socio-economic problems in the surrounding community which is dependent on the mine. Lower grade areas of the mine are also to be put on a care and maintenance basis in an attempt to extend the life of the mine. 4.36 The pro-active plan of the Chief Engineer, who has wide experience at other enterprises in the FSU, is to start re-processing waste dumps containing mercury in a specialized process to be tested in a pilot plant operation. The incentive to start this work is in the concurrent recovery from the wastes of selenium, which has a value of five times the value of mercury. Mercury processing from the current operation will only be carried out to meet any demand in excess of the recovery circuit. The viability of the operation is not at all certain. A three-to-five year period is the probable time frame required to implement and test the re-treatment. 4.37 Environmental Findings in the surface and underground mine. The technology and equipment is an outdated pyro-metallurgical operation using gas to heat the ore to elevated temperatures in rotary kilns and open hearth furnaces of antiquated design. To make matters worse, the FSU obviously absorbed the full production costs and fiscal transfers were kept to a minimum--only covering costs to keep mine in production. Therefore, little maintenance was done and the plant was not upgraded to improve efficiency or safety. This situation has lasted for a long time. As the viability of the operation is in doubt, it would not be attractive to invest money in the mine, although it reportedly contains a good resource of high grade ore (cinnabar). Backgroung Papers: The mining 104 and Metallurgical Sector * The ore contains sulphides and fluoride, in addition to mercury--all of which are very hazardous. Although there is serious risk to underground workers, miners are checked irregularly due to lack of funds. Control checks of the ventilation should be made. * The mine is wet, generating weak acids underground, placing into solution other metals, and mobilizing fluoride and sulphate salts. When pumped out of the mine to the surface, the water may eventually contaminate the nearby river, flow across the border and join the upper reaches of the Syr Darya in Uzbekistan. In fact, the effluences collector of the Chauvay metallurgical plant is not sealed, so effluences with a high concentration of mercury are migrating to the Chauvay River. * Methyl mercury may be generated by anaerobic digestion. This is migrates through the food chain. Only mercury, which is the metal of production interest, is monitored in any outflow. No systematic monitoring has been practiced for the last five years, however. Information on metal salts draining across the mine boundary does not exist. * No run-off from the tailings was reported but a small stream draining from the dump was observed. The likelihood of a contaminated plume after precipitation is high, although the management is adamant that there is no chemical reaction on the dump. A further serious finding was that the water pumped from the wet mine is preferentially used for unspecified agricultural purposes, further increasing the likelihood of mercury mobility through the environment and human population. 4.38 Environmental findings on plant and air emissions. The direct heating of the ore to very elevated temperatures (700°C and above) with gas creates airborne emissions that are very difficult to contain. Stack gases containing CO, S02, Hg vapor, F and NO, must occur despite filtration. Mercury alone is monitored and it can exceed the allowable quantity by a factor of four. A rough estimate of some 40 tons of Hg emitted annually is possible without even considering the other emissions. Additional emissions from the kiln smelting are probable as well, although an exhaust system with filters in the stack is in operation. Precipitate is removed from the filters as a wet sludge, impounded and then returned to the process for smelting. Some antimony is also contained in the residue. 4.39 In summary, the operation is depressed, and operating at a loss. There is little prospect of privatization in the foreseeable future. As the operation is in severe difficulty, health and environmental problems are not addressed due to lack of funds. The three-to-five year time frame for rescuing the mine may be far too long from both an environmental and economic point of view. Air and water monitoring need to be initiated urgently to target immediate improvements, and to know what remedial actions are needed when the mine eventually closes. Environmental monitoring of the tailings dumps and residue impoundments must be reinstated and maintained well after closure of the mine. 4.40 Critical environmental exposures to mercury and antimony compounds may be occurring at the mine and within the broader community surrounding the mine. The occupational hazards to which operators are exposed, as well as hazards to the wider community must be assessed. Toxins appear to be migrating through the environment and threatening a far broader environmental impact down stream. The Sanitary Epidemiology Station, which is doing commendable work, has collected some public health data. This should be gathered and integrated into the broader environmental assessment of the mine. The significance of poor environmental management at the mine in terms of long term public health and ecological liabilities cannot be overstated. Backgroung Papers: The mining 105 and Metallurgical Sector Orlovka Combinat (The Kyrgyz Mining and Metallurgical Plant) 4.41 The Kyrgyz Mining and Metallurgical Plant extracts and processes rare earths such as lanthanum, cerium, dysprosium, erbium, gadolium, holmium, etc. Thorium-bearing lanthanum is the most critical element among these in terms of the environmental problems. Five waste depositories are associated with the plant, two active and three closed. These contain thorium-bearing (i.e. radioactive) cadmium, molybdenum, lead, copper, zinc, and beryllium wastes. The exact condition of these dumps and mobility of wastes from them is unknown. It is known that Waste Depository #2 broke in December, 1964, flooding 20 km2 with radioactive waste waters. The depository was reconstructed and continued in use until 1971, and mitigation efforts were undertaken in the surrounding countryside. The Sanitary and Epidemiological Service has tracked subsequent human health impacts from the continued cultivation of the land (primarily grain and potatoes), and the use of contaminated materials for construction. Toxic levels of lead and other heavy metals have been found in children in the region. Strict monitoring of the mobility of toxic elements should be instituted and impoundments reconstructed if necessary. 4.42 Institutional Oversight. Institutional oversight of the mining and metallurgical sector is presented below, including the administrative structure, legal and regulatory status, and data available. 4.43 Surface and sub-surface resources are the property of the State, although privatization of certain operations is being considered. Currently, the functions of the State to own, regulate and operate mines are confused. The institutions currently involved in the administration of the mining sector include the State Committee on Geology (which maintains and updates the geological data base), Kyrgyzaltin (the State holding company operating industries in key minerals), The Ministry of Energy (which oversees coal mining), the Ministry of Economy and Finance (in charge of taxation), the State Committee on Environmental Protection (responsible for monitoring, inspection and enforcement), and the Academy of Sciences (responsible for basic geological research and theory). A new government oversight structure has been recommended by Bank sectoral studies, which creates a Ministry of Mines. This new structure would emphasize supervisory as opposed to operational functions. 4.44 The State Committee on Geology has existed since the 1930's. It explores for all types of minerals, identifies and tests ore-bodies, and conducts preliminary technical and economic studies. The Committee is responsible for geological cartography, geophysical and geochemical surveys, and maintains a high quality geological data base. The data base includes base maps and surveys for essentially the entire country. Geological and topographical maps are available for sale at the scale of 1:200,000. Detailed geological maps and geophysical and geochemical surveys exist at 1:50,000 and 1:25,000, but much of the data at these scales are considered "state secrets" and are not available to the public. 4.45 The staff of the State Committee on Geology has a reputation for professionalism and excellent training. The Committee is very compartmentalized, however. A legacy of secrecy also exists which makes obtaining existing data or conducting cross-disciplinary analysis of environmental issues difficult or impossible. Encouraging a more team approach to issues would help alleviate this situation. 4.46 The Academy of Sciences complements the State Committee on Geology-scientists at the Academy conduct basic geological research and test new theories. In 1992, the Academy's Institute of Geology commenced a survey of heavy metal deposits to develop a map of natural and man-made long- term ground pollution. This study is assessing:5 5/ Duchemin, July, 1993, Kyrgystan. Environmental Health Services in Europe. WHO-OMS Draft Report. Copenhagen: WHO Bureau for Europe. Backgroung Papers: The mining 106 and Metallurgical Sector * natural sources of mercury, arsenic, lead and beryllium carried to irrigated fields by erosion; * arsenic pollution from antimony smelters; * lead deposits in industrial zones around Bishkek; and * chromium and zinc deposits around Bishkek. Sectoral studies have suggested that the geology section of the Academy be absorbed into the State Committee on Geology. The motivating factor is lack of funds. 4.47 Kyrgyzaltin was formed by Presidential Decree in 1992 "to increase the production of gold, develop the raw materials base, ensure rational use of industrial potential, implement new technologies, develop social infrastructure in the interest of local populations affected by mining activities, and ensure environmental protection."6 All mining and metallurgical enterprises, which were formerly under the Ministry of Industry, were placed under Kyrgyzaltin--except coal. These enterprises include: * Kara-Balta Combinat (Uranium oxide/molybdenum) * Kyrgyzoloto or Makmalzolto Combinat (Gold) * Kyrgyz Mining and Metallurgical Combinat (Rare earths) * Kadamzai Combinat (Antimony) l Haidarkan Combinat (Mercury) * Sari-Jass Combinat (Tin-tungsten) * Tash-Kumir Semi-conductor plant Kyrgyzaltin has the authority to create foreign and domestic joint ventures, and provides marketing, design/engineering, construction, technology and other advisory services. Although it is regarded as a self-sustaining state enterprise, the president of the firm is appointed by the Prime Minister. 6/ Quoted from the Mining Sector study, page 26, para. 1.84. Backgroung Papers: The mining 107 and Metallurgical Sector 4.48 The reassertion of central control over valuable State assets through Kyrgyzaltin may facilitate the development of a rational and coherent strategy for the sector during the current economic transition, including a strong command and control environmental regulatory structure. It may suppress the development of a competitive sector, however, making it difficult to reduce direct or indirect subsidies, or impose market incentives for better environmental management. 4.49 The Ministry of Energy operates eight underground and open pit coal mines. These mines have limited reserves and there are technical difficulties extracting the resource. They are not competitive with mines in other areas of the CBS but are considered strategically important by the GOK as gas and oil fuel supplies become more uncertain. Production at the Kyrgyz Republic sites has fallen due to lack of equipment and supplies, and the departure of technical experts. The MOE plans to increase coal production for industrial applications, but these plans may be difficult to actualize, and although there are two coal-fired power plants, no more are likely according to sectoral studies. There are associated environmental liabilities such as SOx and particulate emissions from coal-burning plants, unhealthy conditions for workers within the mines, and radioactive coal beds being actively worked and the coal sold. Data are very limited, however, on the extent of these problems. 4.50 The State Committee on Environmental Protection (Goskompriroda), which is discussed in far more detail in the Chapter on Institutions, is responsible for administering environmental regulations and laws in the mining sector. The powers and responsibilities of Goskompriroda in relation to the sector are unclear, however. For example, the Committee does not have staff inspectors, equipment or funds for inspections. Like the State Committee on Geology, technicians, although individually highly skilled, tend to be too specialized--not grasping the comprehensive approach which is required for environmental research and monitoring. 4.51 In theory, all mining plans require environmental impact assessments, which must be submitted to the Committee on Environmental Protection for approval. Conditions for environmental protection have not been specified either in the general legislation goveming the sector, nor in the various investment agreements which are being negotiated with international partners. Standards and fines for noncompliance exist and can be severe, but it is unclear what the level of fines are, whether they are enforced and timely, and who is liable--individuals, enterprises, or the state. The effectiveness of the penalties is therefore questionable. 4.52 Legal Regime. The Law on Sub-Soil Resources, passed in 1992, is the primary law governing the mining and metallurgical sector. Several presidential decrees also interact with he sector: * "Creating State Concern 'Kyrgyzaltin' (10/15/92); * Decision of the State to "Improve the Output of Gold" (12/31/92); * "Organization of Kyrgyzaltin" (1/18/93); * "On Enterprises within State Concern Kyrgyzaltin Not Liable to Privatization" (4/06/93). 4.53 The Law on Sub-Soil Resources designates that all sub-soil resources are the property of the state, managed through a "State Fund" of the Jogorku Kenesh. The Republic has authority over and primary responsibility for policy, strategy, legislation and regulations, geological research, compiling the state "mineral balance", signing international agreements, and protecting sub-soil resource users. The regions or oblasts are empowered to coordinate with the republic on conditions for granting rights in each oblast-- sharing usage payments, and jointly carrying out development and implementation of the projects. The Backgroung Papers: The mining 108 and Metallurgical Sector municipal and district govermnents (akimiat and rayon) are empowered to grant licenses for quarrying "commonly available" minerals, developing minerals for the use of local industries, and regulating the construction of buildings and land uses. Although the state owns all sub-surface resources, exclusive rights to resource exploitation may be granted to "juridical persons and citizens". Exploration rights, however, are not exclusive; most exploration is conducted by the State Committee on Geology. 4.54 Transferable licenses are issued permitting the exploitation of resources, after extensive ex ante regulation and negotiation of the terms and conditions. The State retains the power to set the standards for geological exploration, establish mineral delivery quotas, govern the supply of raw materials and payment norms and determine the level of production. Licensees must submit all geological data obtained, provide mining plans and environmental impact assessments, conduct safe activities, protect the environment, rehabilitate the land, and pay regular fees. Licenses may be cancelled if they fail to comply, or the technologies used endanger the health and safety of personnel or near-by residents. Revoking the license (rather than penalties or fines) is the only real mode of enforcement available. In addition, there are no explicit provisions in the law covering the orderly shut down and rehabilitation of mined-out areas. 4.55 The existing regulatory and enforcement capacity of the sector may be enhanced by separating the production and regulatory functions currently combined in Kyrgyzaltin and the Committee on Geology. Sectoral studies have suggested that the existing institutions be reorganized and reformed to focus on overall coordination and supervision of the sector, which should strengthen environmental management. To this end, the creation of a Ministry of Mines is recommended, with several departments which would * assume the responsibilities of the current Committee for Geology regarding the administration of the Law on Sub-Soil Resources; * maintain a registry of mining enterprise permits and titles, and which includes documentation of the licensed activities, and permitted emissions ("environmental passportization"); * evaluate mining work programs; * assess payments and royalties on licensees, including environmental charges and fines; * oversee mine and environmental safety, and enforce compliance with environmental, health and safety standards; and * assume the role of Kyrgyzaltin as a temporary holding company for government mineral assets--supervising mineral asset disposal, and maintaining a database which is organized in such a way that information useful for market analysis may be extracted. 4.56 The State Committee on Geology may be subsumed under this Ministry of Mines or, combined with the Geology Institute of the Academy of Sciences, form an independent entity committed to basic geological research, analysis and education. This Committee currently prospects for all types of minerals, identifies and tests ore-bodies, and conducts preliminary technical and economic studies. Sectoral studies suggest that exploration, testing and evaluation should be left to the contracting enterprises and investors. Rather, the Committee should focus on geological research, develop technical programs in the earth sciences, and establish computerized information systems (GAS) capable of mapping resources and activity for analytical purposes: Backgroung Papers: The mining 109 and Metallurgical Sector * land use patterns--including settlements, agricultural, and potential tourism usages; * exploration and exploitation licenses; * geological structures, including active seismic zones; * geophysical and geochemical data; and * hydrological data. Reconunendations for the Mining and Metallurgical Sector. 4.57 Environmental surveillance and control of the M&M industries must be restored. Existing deposits and industries fall into four categories with different but overlapping regulatory needs: (i) uranium mining and processing, (ii) non-ferrous minerals--mercury and antimony, (iii) lanthanum and rare earths, and (iv) coal, building materials and stone. The main characteristics of these industries and their associated wastes should be characterized and systematized. The key issues are as follow: * Uranium. Uranium and other radioactive materials are the primary issue of concern. Uranium itself is associated with sulfides which cause various acids to form. The sulphide association is critical as it mobilizes uranium, radium and other metals in water. Any old mine site, recovery plant tailings or residue must be checked for radioactive and other toxic mobility as part of the action plan. As explained above, this applies to coal as well. 3 Smelters. Almost all the minerals sought in the Kyrgyz Republic are found in association with sulfides. When minerals are associated with sulphur, the method of smelting concentrate is the metal recovery route that has been most extensively used. All smelters must be monitored as part of the action plan. All routes to the environment, air borne and water borne occurrences covering all the lesser metal constituents associated with the primary one, and salts need to be taken account of in any monitoring program. * Toxicity and heavy metals. When toxic metals such as Hg, As, or particular metals such as Cd or reagents are used in the beneficiation process (cyanide for gold recovery for example), these should tested for mobility and monitored. * Storage integrity. Existing waste dumps, residue dams, and processing waste impoundments must be all investigated for stability and integrity without exception. 4.58 The mining sector is a key sector in the economy of the Kyrgyz Republic, and mechanisms for better organizing governmental oversight should receive serious attention. Appropriate laws should be drawn up guiding proper conduct in the industry. A "stand-alone" Ministry of Mines and Metals would facilitate the organization of oversight functions. A lead agent in the form of a Committee on Mining and Metals within the Ministry should also be considered. As lead agent, the M&M committee would coordinate with other ministries to focus environmental management. Currently, oversight bodies are fragmented and lack the power needed to regulate the industry on health and environmental issues. Institutional structures must put in place can implement and enforce environmental regulations and reclamation requirements. The separation of duties currently embodied in both Kyrgyzaltin and the State Committee on Geology may serve as a model. Backgroung Papers: The mining 110 and Metallurgical Sector 4.59 An Environmental Management Plan should be in place for every mine, covering prospecting and exploration, life of the mine, closure and long term post closure maintenance. Every mine should only be allowed to operate if it remains in compliance with the standards set at each stage of its life. This is a crucial step in any plan for sustainable development. The permit system is a powerful tool (which must be used fairly) by which the onus can be placed on the enterprise to operate within the norms set by the management plan, by making the issuance of permits conditional to compliance. 4.60 Environmental benefit-cost analysis must be applied to project evaluation. When the full environmental and social costs of an activity (or lack of activity) are integrated, different conclusions may be reached about the viability of particular activities. For example, standard economic analysis concludes that recycling metals contained in waste deposits is either marginal or nonviable. If this question were revisited, integrating the full environmental costs of toxic mobility, human health liabilities, and clean-up, recycling tailings may become a more attractive solution. 4.61 External support exists in support of the following sector reforms: * Clarification of mining sector policies and strategies(included under the Bank rehabilitation loan); and = Legislative reform including the mineral industry (included under the rehabilitation loan). 4.62 It is imperative that environmental factors, including legislative, standard and regulatory considerations be integrated into any efforts of sectoral reform. Donor support should be actively sought for environmental review of the sites, clean-up, technological improvements, and institutional strengthening, including the application of market-based incentives. Background Papers: 111 The Industrial Sector Urban Environmental Liabilities Urban growth. While most of the population still live in rural areas, cities in the Kyrgyz Republic have nearly doubled in size in the past 25 years, exceeding 2.2 percent population growth annually. A large migration from rural to urban areas, particularly to Bishkek, has occurred in recent years as a result of the economic down-turn. The provision of urban infrastructure has not kept up with the growth, however--public roads, housing, water supply and sanitation are incomplete and poorly maintained. Even in Bishkek, where infrastructure is most developed, more than 20,000 people rely on tankers for water and do not have adequate waste disposal facilities. The morbidity rates from respiratory effects due to air pollution is estimated to be 160/100,000 in the Republic, higher than either Uzbekistan (110/100,000) or Kazakhstan (100/100,000). The urban poor suffer the most from pollution-related health problems. Low-income families often face substandard housing and water supply, lack of sanitation facilities, poor solid-waste collection, industrial pollution, and housing built on lands which may be subject to natural hazards. Air pollution. The primary sources of air pollution in cites such as Bishkek, Osh, Tokmok and Kara-Balta are thermal power stations, cement plants, chemical industries, urban transport, and mining wastes. In Bishkek, more than 140,000 tons of air pollutants are discharged annually into the atmosphere. The city's thermal power station, which uses high sulfur fuel, discharges almost 50 percent of the total sulfur dioxide emissions in the Republic. Urban transport, though still moderate in towns and cities, is a major cause of urban air pollution due to the wide-spread use of low-grade, leaded gasoline, and old vehicles. Morbidity rates are highest in urban areas -- 263/100,000 in Bishkek as compared to 54/100,000 in the more rural town of Naryn. Even in minute quantities, lead emissions can be very harmful to young children--impairing neurophysiological development and promoting respiratory disorders. Urban Water Supply and Sanitation. Today, 20 percent of the water distribution networks in major cities do not meet sanitary regulations. Most of the distribution networks are more than 40 years old and need major rehabilitation. Although generally drinking water is relatively good quality, about 12.5 percent of the water samples tested showed some level of bacterial contamination and nearly 20 percent of the samples were contaminated with pesticides. Pretreatment of industrial wastewater is insufficient, overloading municipal treatment plants. Furthermore, wastewater treatment plants in most cities and towns do not function to capacity resulting in the discharge of partially treated domestic and industrial wastewater into surface and ground water bodies. Out of 227 pretreatment and treatment plants, 131 need rehabilitation. Groundwater in Bishkek and Kara-Balta has been periodically contamirnated by sewage leaking from the pipe networks. Solid and Hazardous Wastes. Solid wastes are generally dumped into open landfills , creating potential risks to human health through direct exposure or through leachate contamination of municipal water supplies. In Bishkek, the solid waste dump is located close to the Ala-Archa water reservoir (which is also a tourist area in the summner months) and a potential health risk. Proper disposal regimes must be developed, as waste generation will only increase as the population and the economy grows. Background Papers: 112 The Industrial Sector 5. THE INDUSTRIAL SECTOR A. GENERAL OVERVIEW 5.1 Compared with other countries of the Former Soviet Union (FSU) the Kyrgyz Republic is one of the least industrialized, with very few highly polluting basic industries, other than the mining and metallurgical sector. In 1991, the industrial sector comprised about 38 percent of the GDP. The most important industries are mechanical and electrical engineering (vehicle assembly, washing machines, electrical appliances, etc.), light industry (mainly textiles), and food processing. Together, these accounted for about 75 percent of industrial production and 80 percent of industrial exports in 1991. Other significant industries include the chemical, leather goods, and construction industries. The most polluting industries located in the Republic are mining and metallurgical enterprises, cement, electroplating, tanneries, foundries, slaughter houses, and textiles. 5.2 Many of the industrial enterprises are using out-of-date technologies and processing equipment, which have been poorly maintained due to lack of funds. With the break up of the FSU, the financial position of these enterprises has further deteriorated. Industrial restructuring will influence the industry mix--the most significant short-term environmental benefits may be gained through market-induced shifts away from inefficient or unneeded industries which are no longer viable, to potentially less polluting processes. Non-ferrous mining (such as gold) and hydroelectric power generation appear to be promising sectors--both of which can have tremendous environmental impacts if not managed well. Light industry, including electronics, food processing and textiles also show promise, and environmental regulations should be responsive to potential growth in these areas. 5.3 For the most part, pollution control equipment has been installed in industrial enterprises to treat liquid and gaseous emissions. Due to the heavy pollution loads from the outdated equipment and technology, and lack of maintenance of pollution control equipment, however, pollutant emissions are mostly above acceptable norms. The highest pollution levels are registered in Bishkek, Osh, Tokmok, and Kara-Balta. Types of air-borne pollutants in these cities include dust, benzopyrene, sulfur dioxide, oxides of carbon and nitrogen, formaldehyde, and heavy metal salts. Children and people over sixty are particularly affected by pollution, with lowered immune systems and generally higher morbidity rates (263/100,000 in Bishkek as opposed to 55/100,000 in Naryn). Air pollution is in more detail below. 5.4 Hazardous industrial wastes have been largely uncontrolled. Some of these wastes, such as items containing mercury, are deposited in municipal solid waste dumps, others are deposited in uncontrolled sites, and in some cases enterprises are storing them temporarily on their plant sites. There are no special treatment facilities or controlled landfills for hazardous industrial wastes in the Republic. Industrial effluents from enterprises in urban areas are mostly discharged to municipal sewers after rudimentary pretreatment and constitute a heavy burden on overstretched municipal sewage treatment facilities. Water pollution is discussed in greater detail in Chapter 2 on Water Resources. 5.5 Monitoring industrial discharges is the responsibility of the polluting enterprise itself. Independent checks by the Committee on Environmental Protection (Goskompriroda) personnel at the national and oblast levels are now infrequent and very limited in scope due to budget constraints. The situation has deteriorated so much, that the Committee knows it is now unable to detect and follow-up on deliberate misreporting and incomplete analysis of pollutant emissions. 5.6 Finally, the level of pollution fees levied on polluting enterprises is too low to encourage these enterprises to provide effective control of emissions. They would rather pay the pollution levy than to take corrective measures to reduce emissions. More often than not, the pollution fee is waived as the Background Papers: 113 The Industrial Sector polluting enterprise claims an exemption due to economic difficulties. Goskompriroda almost never requires operators of municipal sewage treatment facilities to pay the pollution levy--which reduces the treatment facilities incentive to enforce pretreatment standards on polluting enterprises that discharge in municipal sewers. Cases have been reported where new enterprises are being constructed without adequate pollution control equipment, including those funded by bilateral agencies, further compounding the problems. B. Toxic INDusrRLAL WAsTE DISPOSAL 5.7 The disposal of toxic wastes has been a key governmental concern since 1984. Decrees have been issued to address the problem, but they have been difficult to implement due to lack of funds, equipment and information. Before 1984, decontamination and storage of toxic industrial wastes in the former Soviet Union was unorganized. Few enterprises had storage sites equipped with control measures to prevent migration of toxic materials into the ground, and due to lack of adequate oversight, enterprises were able to avoid proper treatment and disposal of the wastes they were producing. Thus, metallurgical, chemical and other branches of industry reduced costs for many years by ignoring waste treatment at the expense of the environment. 5.8 Throughout the Republic, information on hazardous wastes is insufficient to conclude what the extent of toxic contamination might be or to set priorities. Data over the years are inconsistent, and there is little detail on the chemical composition of wastes. The considerable divergence of data can probably be explained by the failure of every enterprise to routinely report the nature of their wastes, and different understandings of the meaning of "toxic industrial wastes." In order to better assess the problem, Goskompriroda sent a questionnaire to 109 industrial enterprises. Of those contacted, only 63 enterprises responded. Thirty-one of these acknowledged that they generated toxic wastes. Based on the responses, Goskompriroda estimated the volume of waste. For instance, as many as 95,700 mercury lamps (with as much as 65 mg of mercury each) and 1,300 mercury thermometers (with 2 grams each) are disposed of each year at uncontrolled sites. Approximately 5,000 tons of toxic wastes suitable for incineration are generated annually, and approximately 10,000 tons of inorganic toxic wastes are generated. 5.9 According to Goskompriroda, a facility to contain and treat hazardous wastes is needed. Plans have been developed, but lack of funds has prevented their implementation. To determine the most efficient program for dealing with toxic wastes, however, a thorough assessment is needed of the chemical composition, and quantities of toxic wastes being generated by industry. Once that information is available, an evaluation of the feasibility of various options for waste minimization and recovery as well as treatment and disposal. Recommendations: 5.10 To address the problems of pollution and waste minimization in the Republic, the following actions are recommended: * a list of the most polluting industries in the Republic should be drawn up to identify priorities for future regulatory and enforcement activities in the industrial sector; * future investments in polluting industries should be linked to requirements to reduce pollution emissions through the strengthening of already established procedures such as the "environmental passport", or through the introduction of a more conventional pollution permit process; Background Papers: 114 The Industrial Sector 0 for the most polluting industries (e.g. the cement factory, electroplating works, etc.,) a comprehensive independent environmental audit of the plant should be carried out with the assistance of the plant management, and an environmental management action plan drawn up to be incorporated into the enterprise's business plan and into Goskompriroda's pollution permit or environmental passport process. These agreements should be reinforced with financial incentives to encourage compliance such as taxes or fees, as well as firmly enforced penalties for non-compliance; * Environmental Impact Assessment regulations need to be modernized, and institutional capacity strengthened to ensure compliance of newly established enterprises with environmental standards; * the capacities of the Republican and oblast laboratories of the Committee of Environmental Protection need to be considerably up-graded and expanded to support their independent monitoring capability; * a priority action plan should be drawn up for the regulation, treatment and disposal of hazardous industrial wastes, including storage of banned pesticides. Air Pollution 5.11 The cities of Bishkek and Osh have the highest air pollution levels in the Kyrgyz Republic, at least two to three times above the average per capita emissions in the Republic. In 1992 dust in air in Bishkek exceeded two times the maximum permissible concentrations (MPC), with pick highs 7 times above the MPC; in Osh the average was 3 times above the MPC with 4.8 pick highs. Cases of pollution above the MPC are registered also in Tokmnok, Kara-Balta and Dzhalal-Abad. Particulates, nitrogen dioxide, sulphur dioxide and carbon dioxide make up 70.4 to 98.5 percent of the pollution emissions. The levels of heavy metals in air is relatively low, with the exception of lead in Bishkek (pollution from transport), where the average annual concentration is above the MPC, and the pick average monthly concentration is almost 5 times above the MPC. 5.12 Stationary sources alone emit about 737 thousand tons pollutants (642 thousand tones solid and the rest - gaseous), of which 643 thousand tons (87.3 percent) are removed at the source. The removal rate for particulates is estimated to be between 84 and 92 percent, whereas only between 10 and 30 percent of vaporous and gaseous emissions are treated. The main point sources are combined power plants in Bishkek and Osh, industrial enterprises (production of heavy machinery) and the construction industry (cement factories). The combined power plant in Bishkek alone produces about 70 percent of point source pollution in the city. 5.13 Although there are only 371.2 thousand vehicles in the country, autotransport emits some 200 thousand tons and contributes significantly (about 68 percent) to air pollution. About 25 percent of this amount is emitted in Bishkek. The main reasons are (i) use of low quality fuels, (ii) old and badly maintained park, (iii) lack of equipment for car tuning to minimize emissions, (iv) heavy dependance on autotransport for interrepublican trade, and (v) bad road conditions. 5.14 Generally emissions are decreasing--due to contractions in the economy rather than increasing emissions control. In 1992, particulate emissions were down 20 percent from 1988; vaporous and gaseous emissions down by 35 percent. Data on the emission levels of various pollutants in the cities of Bishkek, Osh and Haidarkan between 1992 and 1993 are shown in Table 2-10. Although overall concentrations and frequency of peak events of particulates, benzopyrene and sulphur compounds are Background Papers: 115 The Industrial Sector tending downward, some emissions are increasing. For example, emissions of nitric oxide, inorganic particulates and coal ash in Bishkek, and emissions of formaldehyde and coal ash in Osh are higher in 1993 than 1992. These increases are probably due in part to a switch to cheaper, lower grade fossil fuels as incomes have declined. 5.15 Bishkek: Air pollution sources and trends. The city of Bishkek is an administrative, industrial and cultural center for the Republic. Bishkek's climate, geographical position and meteorological conditions slow the dispersion of atmospheric pollutants. Located in a basin near the head of the Chu valley, it is subject to atmospheric inversions especially during the winter months and at night, accumulating pollutants in the lower levels of the atmosphere. 5.16 There are over 270 industrial, municipal and transport enterprises (of which 50 are significant polluters) within the municipal area which have both routine and intermittent atmospheric. Very large polluters, such as oil refineries and metallurgical plants, are not located in the city. Seventy-eight percent of the city's pollutants are emitted by the municipal power plants. Other primary sources of air pollution are the construction, light machinery, glass, shoe, furniture, textile, and food industries, and vehicular transport. In 1993, there were over 75,000 cars, trucks and buses in the city. About 38,000 of them belonged to the state, including a fleet of 6,000 buses. Local experts estimate the state share of pollution emissions is as much as 74,000 tons; in 1990 private transport's share was estimated at 4,800 tons. Recently the private transport share of total air pollution is decreasing because of the sharp rise in fuel prices. In addition, there are few environmental controls on vehicle repair facilities. For instance, 10 out of 30 engine cleaning facilities do not recycle or treat their waste water. 5.17 There are more than 40,000 individual houses in the city, many of which burn coal for heat. Emissions from home coal stoves were estimated at 2,000 tons in 1990. Despite their relatively low level of overall emissions, however, emissions from home coal stoves are a particular hazard to the health of the people who use them. In addition,, coal mined from at least one area (Kadzhy Sai) is radioactive, and poses a radon hazard in the homes that use it. 5.18 According to the Town Building Institute, Bishkek is divided into two pollution zones: east and west. The main polluters in the eastern zone are Power station 1, Kyrgyzavtomash (a machine-building plant), Building materials Plant 1, Auto-Assembly Plant, Drills Plant and "Djanar" firm. Hydromet reports that in this zone overall pollution levels are 5 to 10 times the Maximum Permissible Concentration (MPC). Formaldehyde levels fluctuate 2 to 10 MPC, particulates 1.3 to 3.8 MPC, nitrogen dioxide 1.7 to 3.0 MPC, and carbon monoxide 3.2 to 4.8 MPC. In the western zone, overall pollution levels are also 5 to 10 times the PD. There the main sources of pollution are the Kyrgyzmebel (Kyrgyzfurniture) Industrial Association, the Lenin plant, the Frunze agricultural mechanical engineering plant, the Bishkekstroimaterialy--a group of building materials enterprises, and the Dastan Transport Association. Formaldehyde levels fluctuate between 6.8 to 10 PD and particulate levels are often up to 4.7 PD. Other emissions are usually within the standard PD. Insttutional Oversight 5.19 Article 15 of the Law on Environmental Protection (1991) required a national system of technical and meteorological standards be established to protect human and ecosystem health from toxic levels of air pollution. Until the current draft "Law about Atmospheric Air Protection" is passed, the laws of the former USSR are in force. The GOK implements the laws by establishing standards, regulations and procedures. Background Papers: 116 The Industrial Sector 5.20 In theory, stationary sources are allowed to emit pollutants only when existing standards are met and the state has issued a permit for the emissions to take place. Polluting entities must ensure that the required controls are instituted, keep any prevention or mitigation technologies in good operating order, routinely monitor and report pollution emissions, and take additional steps to further reduce emissions. The State Committee on the Environment is in charge of tracking pollutants from stationary sources and enforcing emissions standards and regulations; the State Motor-Transport Inspection in the Ministry of Internal Affairs is in charge of vehicular emissions. 5.21 There are a number of additional agencies which interact on air pollution control issues. The State Sanitary-Epidemiological Service is in charge of regulations and sanitary norms in connection with human exposure to toxic pollutants. It establishes "sanitary-preventive zones" around industries with hazardous emissions, for the purpose of protecting workers and communities, and oversees any control actions related to toxic emissions. Hydromet is in charge of monitoring atmospheric pollution. They operate monitoring sites in the cities of Bishkek, Osh, Tokmok, Cholpon-Ata, Karakol, and Djalal-Abad. 5.22 Legal and Regulatory Context. In 1992, fees for pollutant emissions were established by the Presidential Decree "Local and Republican Funds for Environmental Protection." The State Committee on the Environment, and heads of the regional and municipal public administrations are responsible for implementing pollution fees and siting polluting industries in the republic. 5.23 Article 35 of the Constitution adopted by the Kyrgyz Republic in 1993, makes a clean and healthy environment a state priority. Laws which impact the regulation of air pollution include the Law about Environmental Protection, the Law for Protection of the Health of the Nation, and the President's Decree on Local and Republican Funds for Environmental Protection. When there is no law or inadequate coverage of the law in a particular case, the State standards, regulations, procedures and technical requirements of the FSU are in force. Therefore, the 1980 USSR Law for Atmospheric Air Protection is still the primary law guiding behavior, although a new law is being drafted. 5.24 The former law imposes criminal penalties for the following acts by individuals or enterprises: Exceeding the MPC standards for emissions; * Exceeding the established norms for harmful physical influence on the ambient atmosphere; * Emitting pollutants without the proper pernits; * Improper use of or failure to use installed pollution control technologies; * Operating facilities which do not have the required air pollution controls; * Producing and operating motor vehicles, planes, boats or any other mobile unit which does not meet the established emission standards; * Putting into practice any inventions, projects or plans which do not meet the national requirements for ambient air protection; Background Papers: 117 The Industrial Sector * Violation of health and safety rules regarding the loading, transporting, and disposing of industrial or household wastes, or agricultural chemicals, which lead or could lead to ambient air pollution; * Failing to follow the instructions or procedures established by the regulating agencies. Recommendations: 5.25 Prevention is generally far cheaper and more effective than clean-up after the fact. Much of the pollution in the Republic can be reduced through careful selection of the raw materials and technologies used in production. In particular, switching to more energy and materials efficient technologies, and recycling waste products will have a tremendous impact on effluents and emissions. As funds become available for investment, the following steps must be included in efforts to reduce ambient air pollution: * Phase out old, polluting industries which are no longer economically viable; * Introduce improved, less-polluting production technologies, and in particular, institute waste recycling; * Repair and maintain existing pollution control installations and introduce up-to-date control technologies; * Switch from more polluting fuels such as soft coal and diesel to hydropower, electricity, natural gas, and liquid gas; * Monitor and enforce existing emission standards; * Implement a phased-in program for pollution permits and fees which reflect true social and environmental costs of emissions. Background Paper: 118 The Energy Sector 6. THE ENERGY SECTOR 6.1 Energy supply is a critical issue in the Kyrgyz Republic. Although the Republic has coal reserves estimated at 2 billion tons, some oil and natural gas, and significant hydropower capacity, it remains dependent on unreliable external sources of energy which are costly in terms of hard currency demands. The Republic is also richly endowed with renewable energy resources such as solar and geo-thermal energy. The "Kun" State Business Project has been set up to research and develop these alternative energy resources, but these sources are far from becoming economically viable on a large scale.. 6.2 Coal. Between 1991 and 1994, coal consumption in The Republic dropped from 4.3 million tons to about 1.6 million tons'. Kyrgyzstan produced about 800,000 tons of coal in 1994. Kazakhstan is the primary source of imported coal. The coal is a good lignite, with an average heating value of 4,000 kcal/kg., and a sulphur content of less than one percent. Ash content ranges from 10-35 percent (but is generally closer to the high end) depending on the ore body and efficiency of extraction. It is important to note that both production and consumption of coal are declining rapidly due to high transportation costs, increasing prices of imported coal, and contracting consumption in depressed industries. 6.3 Most of the Republic's coal is mined in the south, where as much of the coal is consumed in the north. A spur of the Teen Shan mountains bisects the country, making transport of the coal (by road) extremely costly. The north is therefore supplied by coal from Kazakhstan. The cost of coal to consumers has increased relative to electricity and renewable biomass fuels. This is causing many communities to begin switching from coal to electricity, as well as placing increasing pressure or the limited renewable wood and other biomass resources of the Republic. 6.4 Residential consumption of coal may decrease (with very substantial environmental and health benefits to consumers and the population at large),as households expand their use of electricity. It is possible, however, that there will be an overall increase in the use of coal for central heat and power generation in the Republic if inter-republic trade in oil and gas continue to decline. Heating in urban areas is provided by gas/coal/mazot fired central combined-heat-and-power plants (CHPs) providing water heating in summer and space/water heating in winter. Due to the rising natural gas prices, CHPs dependent on gas have switched rapidly to coal and mazot firing. In rural areas without CHPs, heating is provided by coal, wood, and manure/straw fuels. Some communities are gradually installing additional transformer capacity (both with and without government financial assistance) to support the conversion to electric space and water heating and electric cooking. The shift to electrical heating--driven by the unreliability of the CHPs--is overloading the distribution networks, however, and transformer capacity is not being added at the rates needed. Poor households still have to rely on wood and manure/straw fuels. 6.5 Increased coal consumption by CHPs and other power production in coal-fired boilers will increase atmospheric emission of dust, S02, and greenhouse gases (CO2 and CO) relative to using natural gas. The greatest enviromnental and health impacts will be from increased dust emissions, particularly in CHPs and in coal-fired electric power stations with poorly operating (and in some cases non-operating) dust collectors. The highest priority will be to upgrade equipment, as well as maintain and operate dust I/ Kyrgyzstan Energy Sector Review. Background Paper: 119 The Energy Sector collectors in the CHPs which are located n urban areas.2 In addition, substantial quantities of ash collect as residue at the coal-fired CHPs and other boilers. This will present a disposal problem, with the need to evaluate options for cost effective reuse, such as in cement and building-products manufacture as well as to minimize the area of land occupied as disposal sites, and to control dust generation at these sites. 6.6 Appropriate measures will also have to be taken to mitigate the environmental impact of coal production in both open pit and underground mining operations. The areas of concern include: dust control; minimization of land disturbance through life-cycle approaches to mine design, operation and closure; and control of acid drainage from pits, waste piles and underground workings. Particular attention needs to be given to mine workers' health and safety; control of underground fires and explosions; safe extraction of coal bed methane for local consumption; and control of surface subsidence in underground mining operations. 6.7 Petroleum Products. As the government no longer controls the import of petroleum products, the exact consumption levels of petroleum products is not known. Petroleum product consumption is currently estimated at anywhere 896,000 and 1.8 million tons per year. Drilling activity in the republic is low, due to lack of funds. The present production rate is approximately 110,000 tons oil/year and 30 mil. m3 natural gas/year.3 (Natural gas consumption in 1993 was 1.3 billion m3 per year.) Although Kyrgyz authorities have systematic plans which include environmental controls, there is a lack of material, spare parts and financial resources for operations, monitoring compliance to regulations, and responding to emergency situations. Pipelines are increasingly corroded internally, and pipeline sections pass as free spans over difficult trenches and riverbeds. There have been no reported ruptures, but breakage could occur from mud slides, severe floods or earthquakes; and although the volumes of oil in the pipelines are not large, leakage could still be serious if it occurred in a critical watershed. On the whole, however--in spite of old equipment and lack of resources--the oil industry does not represent a major threat to the environment now, or in the near term. Emissions into the air and soil are low. Sites are clean; equipment is maintained; abandoned wells are sealed; and the oil is under low pressure, reducing the possibility of catastrophic release. Potential new discoveries of oil should be well monitored for their environmental impacts. 6.8 Hydroelectricity. Due to its significant hydropower capacity, the Kyrgyz Republic has a surplus of electricity. There are 5 large and 13 small working hydropower stations in the Republic with a capacity of 3,000 MW. 75 percent of the Republic's electricity generation capacity is provided by hydropower. Although 100 percent of the population is provided with electricity for lighting purposes, electricity utilization per capita is the lowest in Central Asia. The Republic has an enormous untapped hydroelectric generating potential. Current exploitation only amounts to 11 to 15 percent of their total hydro potential, but further development will require enormous capital outlays. 6.9 A master plan of the country's hydroelectric resources was completed in 1993 which identified promising projects for development. The major constraint for development is the lack of markets. The installed capacity exceeds current domestic use. In addition, the operation of the reservoirs to satisfy the irrigation needs of downstream countries is in conflict with the power needs of the Kyrgyz Republic. 2/ A feasibility study for retrofitting the Bishkek CHP is underway under USAID financing. The results of this study are not yet available. 3/ Source: Environmental assessment performed for the World Bank by Novatech, December, 1994. Background Paper: 120 The Energy Sector Nevertheless, there is an intent to increase the exploitation of the hydroelectricity generating potential of the Republic, and efforts must be directed toward minimizing environmental and social impacts. Particular attention must be given during the planning stage to: (i) site selection for construction of dams; (ii) dam height; (iii) design for water level fluctuations; (iv) minimum flow releases; (v) dam safety and protection from seismic activity; (vi) control of sedimentation; (vii) aesthetic considerations; (viii) resettlement of communities impacted by water level rise; (ix) impact on cultural and historical sites; (x) impacts on fisheries (especially mountain trout); (xi) impacts on alternative productive activities on the land affected; (xii) impacts on natural flora and fauna; and (xiii) impacts on tourism. 6.10 Priority should be given to exploiting those resources where these impacts can be minimized, and to integrating a multi-sectoral review process into planning and evaluating projects. It is particularly important to take an overview of all of the hydroelectric dams proposed for the country--not to consider them in isolation from each other, especially those in the same water basin. Environmental and social impact assessment must, therefore, be fully integrated into the technical and economic evaluation of these resources. Examples have already been identified in the Kyrgyz Republic where dam safety has been compromised by improper siting near fault zones and areas of seismic activity, improper construction methods, etc. Dam failures can lead to catastrophic impacts on downstream communities and economic activities. The following box briefly elaborates on hydroelectric development along the Naryn River. 6.11 In deciding priorities for siting hydroelectric schemes, particular recognition should be given to alternative uses of these resources with important economic potential. For example, the Western Karakol River may have great economic potential for white water rafting and other water-related tourism activities. These opportunities could be lost if the river is developed for hydropower. The value of these alternative activities, combined with fisheries, agriculture, or other uses of the land may equal or outweigh the benefits derived from energy development. Economic analysis of alternative development options which includes environmental and social impacts may show that hydropower generation is not the optimal use of a particular water resource. 6.12 Fortunately, in the Kyrgyz Republic (as opposed to the heavily populated regions of South and East Asia) the need for resettlement of communities displaced by rising water appears is minimized. For instance, it is estimated that hydroelectric generating capacity could be increased from 3,000 MW to 11,400 MW in the Republic with the need to resettle only 2 community settlements of 500 people in total. On the other hand, key habitats for preserving regional biodiversity are located in the Republic along watercourses, and competition for water among various human and natural populations may be intensified. Background Paper: 121 The Energy Sector Hydropower and Envirommental Costs A number of large hydroelectric power plants (HEPP) have been built on the lower reaches of the Naryn River. They include the Toktogul, Kurpsaiskaya, Tashkumyrskaya, Uchkyrganskaya, and the Shamaldysaiskaya HEPPs. The construction of the Kamnbaratynskaya-2 has stopped for lack of funds, and Kambaratynskaya-1 is still at a design stage. More than ten hydroelectric power plants are planned for construction along the middle and upper reaches of the Naryn River and on its tributaries, the Alabuga and the Kokmergen Rivers, although the lack of funds may delay these projects indeftnitely. The environmental costs of hydropower development have received inadequate attention in the past, with profound economic costs. Energy was developed as part of the central FSU plan, but was poorly integrated into the local economy. Currently, electrical production in Kyrgyzstan exceeds the capacity of the technical infrastructure to service demand, while the Republic's dependence on imported fossil fuels is resulting in severe fuel shortages throughout the country. The overall trend in the economy is switching to electricity. The loss of valuable biological resources and increased competition for land and water as a result of hydropower projects are cause for environmental concern, and have been inadequately considered in previous development plans. For example, more than thirteen thousand hectares of fertile soils were flooded by the Toktogul Reservoir. In addition to constricting downstream water supply to Uzbekistan and the Area Sea Basin, the dam destroyed the fragile ecological balance within the region and the once beautiful area surrounding the reservoir was transformed into a desert. The reservoir and the associated HEPP are located on one of the largest faults in the region--the Talasso-Ferganski, and landslides associated with desertification are increasing. Potential damage to dams from earthquakes is perhaps the most important environmental liability of development along the Naryn River. The region is seismically very active, and operating HEPPs are located on fault lines where quake activity may reach magnitudes of 9 to 1 1. The damage from dam system failure and resulting floods could be catastrophic. After the large earthquake near the Toktogul Reservoir in August, 1992, however, there were no large-scale protests against the dam--like those against the Tehri Dam in India after the earthquake adjacent to it. Public awareness in the Republic is low regarding the potential environmental problems associated with large hydro-power projects. To establish a strong foundation for hydro-power development, research and analysis is needed in the following areas: * Access to the considerable body of international knowledge on the social, economic, and environmental implications of various forms of hydro-power development; * Examination of the environmental liabilities of large dams, such as vulnerability to seismic activity, flooded lands and lost resources, and changes in regional hydrological regimes; * Estimation of the true economy of hydropower in the Republic of Kyrgyz, integrating environmental costs and liabilities into the project appraisals. Monitoring for the environmental impacts of current hydropower projects should be initiated. Comprehensive watershed plans should be developed which place both large and small energy projects within the context of the regional ecology and social systems, and balance competing uses of the land. Background Paper: 122 The Energy Sector 6.13 Traditional Fuels. Rural communities rely on traditional fuels (firewood and dung cakes) as well as coal and liquified petroleum gas (LPG), as the table below indicates (Table 6-1). Rising prices may be causing large shifts to wood and dung, accelerating deforestation, loss of organic materials in the soil, and soil erosion. Table 6-1: Household Energy Sources (in %) Energy Source Republic Urban Rural Electricity 100 100 99 District Heat/Steam 23 52 1 Natural Gas 24 56 0 LPG 24 18 29 Kerosene 4 0 7 Coal 52 32 67 Firewood 66 28 95 Dung Cakes 49 5 81 Source: Kyrgyzstan Energy Sector Review 6.14 Forests are not officially a major energy resource in the Republic. Only about 4 percent of the country is forested, and the annual reforestation efforts total about 3,000 hectares. The official annual harvest is only 40,000 m3. Due to their sharply curtailed budgets, the local units of the State Forest Department have little regulating and enforcement capability in the forest lands, and uncontrolled cutting of trees is rampant. A 1993 household survey4 estimated 500,000m3 were illegally taken from roads and hillsides. The actual amount cut may be even higher. Greater attention must be given to the reliance on wood fuels by energy sector planners, if widespread denudation is to be avoided. 6.15 Prices. The tremendous increase in energy prices since price liberalization began, is one of the most important changes in the Kyrgyz Republic related to the economic transition period. The average unit price of energy imports increased by fifty-fold in 1992, and by an additional eighteen-fold in 1993. In 1993, the country imported about US$171 million in energy goods. In 1994, imports are expected to reach about US$206 million, or 30 percent of total imports. The Republic now pays world prices for oil imports from Russia and Kazakhstan, and 60 to 80 percent of world prices for natural gas imports from Uzbekistan. Table 2-8 estimates the country's energy balance. 4/ Kyrgyzstan Energy Sector Review. Background Paper: 123 The Energy Sector 6.16 Price increases provide a strong incentive for energy conservation in all sectors of the economy, potentially leading to considerable reductions in emissions. In 1992, overall energy consumption declined by 18 percent, with a parallel reduction in pollution emissions. Higher energy prices should help lead industrial restructuring away from heavy industry toward less polluting technologies in lighter industries and services. It will also force all producers to become more efficient, which should reduce resource waste and associated environmental effects. Removing energy subsidies is one of the most painful measures of market reform and vulnerable to social pressure, however. In addition, Increasing prices forces shifts to altemative fuels, some of which are more polluting, such as lower quality coals, or more ecologically damaging, such as wood stripped from fragile forest reserves. 6.17 Domestic energy trends are summarized in table 6-2 below. While overall sales have been relatively constant, sales to industrial consumers have declined considerably, balanced by a large growth in sales to residential consumers. Likely future trends of energy consumption/ supply will be towards increased use of electricity generally, but particularly in rural areas; increased pressure on exploiting limited wood and biomass resources in rural areas; increased exploitation of hydroelectric generating potential; and increased coal use through installation of cogeneration units in existing CHPs fired by coal to produce electricity, in newly constructed pit head coal-fired power stations; and in industrial boilers. Table 6-2: 1992 estimated energy balance5 (in tons of oil equivalent x 103) Oil Gas Steam Lignite Electricity Total Production 0.13 0.06 1.43 0.80 2.86 5.28 Imports 1.55 1.66 1.78 0.85 5.84 Exports 0.13 0.75 1.41 2.29 Consumption 1.55 1.72 2.46 0.80 2.30 8.83 and Losses 6.18 Critical fuel shortages and rising prices inevitably mean that rural communities and workers who have been displaced by unemployment rely increasingly on fuelwood, straw and manure. The negative impact of this kind of fuel extraction from the land can be profound--increasing soil erosion, degrading the few forests, and expanding desertification. The expansion of reliance on these types of fuels needs to be assessed and addressed as an urgent environmental and social priority. 6.19 These likely future trends provide the background for evaluating the environmental and social impacts of adjustments in the energy sector in order to develop an appropriate energy sector environmental action plan to mitigate such impacts through technological, policy and regulatory mechanisms. It is important to point out that, in relation to other countries in the FSU, the Kyrgyz Republic has a low energy consumption per capita and low income per capita. This can be seen in Figure 5/ Source: The World Bank Energy Sector Review. Background Paper: 124 The Energy Sector 2-1, which correlates energy consumption per capita with income per capita in nine countries. As the energy sector develops, the country must seek an energy mix which is relatively cheap, and conservation measures which can be quickly and inexpensively implemented. An example is industrial and home energy audits coupled with public education and assistance on better insulation and energy conservation. Table 6-3: The Power Market in the Kyrgyz Republic (GWh) Sector 1990 1991 1992 1993 % Growth l _ _ _ _ _ _ _ _ _ _ _ _ _[_ _ _ _ _ _ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (19 90-93) Industry 3,417 3,509 2,974 2,489 (10.0) Agriculture 1,848 1,986 1,872 1,846 0 Residential 945 1,455 1,951 2,455 37.5 Other 1,139 1,179 1,315 1,195 1.6 TOTAL 7,349 8,129 8,112 7,985 2.8 6.20 Recommendations: In summary, it is recommended that: * maintenance and operation of dust collection equipment in existing coal burning CHPs, power and industrial boiler facilities is of high priority in the short to medium term when investment funds will be severely constrained; * the maximum electricity generating potential of existing hydropower facilities should be exploited consistent with agreements on international water allocations (long term agreements which balance power/irrigation water exports with fossil fuel imports should be drafted); * a comprehensive evaluation of environmental and social costs and benefits be incorporated into decision-making in evaluating alternative options for energy supply; * modern economic analysis of alternative use (eg. tourism) of water resources planned for exploitation of hydroelectric potential should be incorporated into decisions relating to priorities in development of this potential. This analysis should be done on a country- wide basis. The analysis may show that certain areas should not be exploited for this purpose, but should be set aside as conservation areas; Background Paper: 125 The Energy Sector * an independent evaluation of the safety of existing damns, particularly those in seismnically active zones and near major faults should be undertaken; * low cost means of providing energy for low income rural communities for space/water heating and cooking to take pressure off limited renewable energy resources should be investigated; fuelwood planting projects should be promoted; and * options for increased reuse of ash from coal burning facilities should be evaluated. Background Papers: Legislation, 126 Standards and Enforcement 7. LEGISLATION, STANDARDS AND ENFORCEMENT Institutional and Policy Framework 7.1 Current status. The Kyrgyz Republic inherited a basic institutional and policy framnework for environmental management from the former Soviet Union. Due to low priority of environmental protection, this framnework developed at a relatively later stage than in the West. Until 1998, when USSR and Republican Committee on Environmental Protection was established, there was no specialized environmental protection agency in the Soviet Government. Since independence the country has taken steps to adjust its environmental policy framework and institutions to the specific needs of the new state. Environmental responsibilities are delegated to the Parliament, the President, the central Government and the Oblast administrations'. They are defined in the new Law on Environmental Protection of 1991. 7.2 The Parliament (Jogorku Kenesh) is in charge of (i) defining the overall nature protection policy framework; (ii) developing and endorsing laws and regulations; and (iii) approving Government proposals on resource charges and taxes. During the first year of independence, there was a three-member parliamentary commission on environment. Due to financial constraints it was merged with the agriculture commission in a Commission on Agriculture and Environment (CAE), which coordinates and supervises proposed legislative changes in the field of the environment, as well as the incorporation of environmental issues in the agenda of the Parliament. While the Environmental Sub-Commission is actively promoting its agenda, since agriculture is a key sector for the Kyrgyz economy, the problems of this sector dominate the CAE's activities. Other Commissions also have environmental responsibilities assigned within their terms of reference (see table 7-1). According to the Constitution, a 105-seats Jogorku Kenesh is designed to replace the previous one, a 350-seats Soviet Supreme (after elections on February 5, 1995). The restructuring of the Jogorku Kenesh is expected to change the current composition and functions of the parliamentary Commissions. 7.3 Environmental responsibilities are delegated to the President's office2. The President has the authority to (i) establish specific rules of natural resource use; (ii) define and announce the boundaries and status of ecological emergencies and ecological disaster zones; and (iii) approve the procedures for collection and use of environmental protection funds. The President is also responsible for signing all laws adopted by the Jogorku Kenesh, including the environmental legislation, and for conducting international negotiations, signing and submitting for ratification to the Jogorku Kenesh international conventions and treaties. 7.4 In the central Government, a Governmental Decree passed in December 1992 assigned responsibilities for executing the State's nature protection and environmental management policy with the following agencies: the State Commnittee on Environmental Protection (Goskompriroda), the Ministry of Internal Affairs, the Sanitary-Epidemiology Service (Sanepid), the State Committee on Geology and Underground Protection, the State Land Regulation Inspection, the State Forestry Inspection and the State Inspection on Industrial and Mining Safety. In addition, environmental functions are delegated to the I/ Details on the legislative and regulatory framework in the Kyrgyz Republic with regard to the enviromnent are provided in Annex XX. 2/ When the President's Office was formed, overseeing enviromnental issues was assigned, among other functions, to one of the Presidential advisors. As a result of personal changes, this function was abolished. Steps to improve the environmental management system, as well as to join some international conventions (eg, the Biodiversity Convention) may require a number of legislative and regulatory interventions of the President, and the availability of environmental expertise (of staff or consultant) in the President's office. Background Papers: Legislation, 127 Standards and Enforcement State Agency on Hydrometeorology (Hydromet), which carries out monitoring of air, water and soil quality. Environmental data are collected in the State Committee on Statistics (Goskomstat) and incorporated in the macroeconomic analysis, provided by the State Committee on Economy (Goskomekonomika). The Ministry of Water Economy has both expertise and responsibilities in water resources management. The Committee on Geology is involved in monitoring and exploration of ground water resources. The Ministry of Agriculture is involved in environmental policy issues concerning soil degradation, application of agrochemicals and farming. Table 7-1: Key Commissions of the Jogorku Kenesh Commission Primary 1 Environmental I Responsibilities Responsibilities Agricultural, Food and Ecological Affairs Agriculture Agriculture Land reform Soil conservation Ecology Land reform Forestry Air and water pollution control Pesticides, food safety National parks and wilderness Global questions Science, Industry Development, Energy, Science Energy policy, conservation New Technology and Transportation Affairs Energy policy Road air pollution Industrial issues Scientific research Communication Global questions Transportation Economic, Budgeting, Finance and Prices Budget Appropriation funds for programs Affairs Bank issues Taxation Taxation User fees Economic Global questions forecasting Health and Social Affairs Public health Public and Occupational health Social welfare Pesticides Global questions Legislature, Human rights, Defence, National Human rights Environmental laws, penalties Security and Fight with Crimes Affairs Civil, criminal codes Defence National security l Trade, Consumer Goods, and Services Consumer rights Food safety Affairs Trade issues Consumer services International and Interparliamentary International and International Conventions Connection Interparliamentary affairs Building, Architecture and Industry of Building Construction safety guidelines Building Materials Constructing Architecture Education, Culture,Language, International Education Environmental education relations, Sport, Tourism, Youth Cultural Affairs International issues Sport Tourism Youth Keneshs, Public Affairs Local Governments Local responsibilities on environmental issues Local Keneshs Publicity Background Papers: Legislation, 128 Standards and Enforcement 7.5 Goskompriroda is the key agency in charge of environmental policy and nature protection regulations. It was created in 1988 as a part of an all-FSU effort to strengthen the institutions in the environmental sector by replacing the Government Commission on Environmental Protection and taking the status of a ministry. According to the Environmental Protection Act of 1991, a special Government Decree (No. 71 of February 16, 1994) defines the position of Goskompriroda within the Government, and spells out its responsibilities. The Decree requires that Goskompriroda coordinates the system of environmental management within all sectors of the economy, develops and enforces all environmental standards and regulations, and assists the Government in designing and implementing policy and investment programs for environmental protection. Environmental data collection, pollution control, provision of permits for the use of natural resources, management of parks and protected areas and environmental impact assessment are the main operational responsibilities of Goskompriroda. 7.6 Goskompriroda consists of one central office and seven local branches (one in each of the Oblasts and one in the city of Bishkek), with a total staff of about 150. The central office has 42 employees and its Chairman is a member of the Ministerial Council. The structure of the central office (fig. 1) includes: (i) Department of Control and Inspection (with 14 staff); (ii) Department of Ecological Expertise (with 7 staff); (iii) Department of Economics, Environmental Management and Forecast (with 5 staff); and an International Relations and Science Division (with 5 staff). The rest of the Committee are support staff. 7.7 The Forestry Inspection and the Administration of the Hunting Enterprises were subsumed under Goskompriroda according to the decision of the Government. They now form two separate Departments, with relative managerial and budgetary autonomy from Goskompriroda. As a result of the merge, Goskompriroda has undertaken new functions (overseeing forestry production, and licensing hunting and fishing) in addition to enforcement of environmental regulations. Normal practice in other countries is to keep institutionally separate responsibilities for developing and enforcing environmental regulations, including control on licensing hunting and fishing, from practicing nature resources-based activities. An organizational chart for Goskompriroda (central administration and local branches) was approved by Government Decree No. 71 on February 16, 1994 (fig. 2). 7.8 There is both compelementarity and overlap among the agencies that are currently assigned to participate in development and implementation of the state environmental policy. Even when complementarily is dominant, the vertical hierarchy in Government inherited from the former Soviet Union leads to poor coordination among parallel activities. In order to improve the efficiency of environmental policy coordination, formal links among the above agencies should be established. On a Government level this requires placing all ministries and committees with environmental management functions within the Government under the supervision of the same Deputy Prime Minister. Also, it was proposed that the high level Steering Committee for the preparation of the NEAP should continue to supervise and monitor the implementation of the NEAP, serving as a coordinating body in the field of environmental policy. 7.9 The most important information agency for the governmental system of environmental protection is Hydromet, which is in charge of monitoring the quality of air, water and soil. The data, collected by Hydromet's stations, should be used by Goskompriroda in the analysis of the state of the environment, as well as for determining pollution from point sources and imposing appropriate sanctions. Currently, however, the ability of the two institutions to collaborate is rather limited, mostly due to staff and procedural constraints. As a result, Hydromet accumulates a significant amount of information, which is of limited use for the policy makers. On the other hand, Goskompriroda is under pressure to collect the necessary data, and duplicates the activities of Hydromet. Background Papers: Legislation, 129 Standards and Enforcement Figure I DIAGRAM OF MANAGEMENT OF STATE COMMITTEE ON ENVIRONMENTAL PROTECTION Stete Commetaee on Environmental Protection Chief Management e ieCf n m on Forest Enterprises branches | |Ecobogical Scientific Ceta Insecio Management B ssY ku l Osh Hungand enformation on analytical on fruh and anagemen Management Center Control nut foresto on forests on forests _ 0 ~~~~~~~~~~~~~~~~~~~Forest | |Forest | |Forest BJshkek Citi State reserves |Enterprises ||Enterprises ||Enterprises| Commettee and national parks |Tomak Balykchy Inter-ralon __ inter-raion Inspection inspection Chui Oblast Issyk-ltul Kar -BIty _ Commettee _ Oblast commettes Inspection I nter-raion __ of analytical -!Iinspection n control Kyzylkiya Tm Tsh-Kumba | inter-raolonn inter-raisO. in pection | | | l § | | ~~~~~~~~~~~inspection Osh Oblast _ | Galal-abad L ,Inspectio |n Comrnettee Oblast commettee n |Inspection |of analytical ll| _ of analytical conro control Insecio Ma Ols Talas Oblast l Inseto of analyicaI Commettee Comttnee | |of analytical |control | control Oblast [ Ihuntingr |enterprises Chief management| on nunting | Enterprise Hunting| n enterprises and management |enterprise | control |'Kyrgooo I | Inspection on P ress-center | small boats ' Asa'a Background Papers: Legislation, 130 Standards and Enforcement Figure 2 Structure of the Headquarter of the State Conmmittee on Environmental Protection Chairman of the State Committee on Enviromnental Protection 1 (staff Member) First Deputy Chairman Deputy Chairman L ~ ~ (saf member)l Main control-inspection Department 14 (staff members) Department on Ecological Appraisal 7 (staff members) I Department on Economics and Forecasting of Natural Resources Using 5 (staff members) Department on Science and International Cooperation 5 (staff members) Department on Accounting and Finance 5 (staff members) General Department 3 (staff members) Background Papers: Legislation, 131 Standards and Enforcement 7.10 A proposal for merging the two agencies was submitted to the Parliament two years ago, and declined at that time. There are two constraints to this merge: (i) institutional incomparability between the Committees; and (ii) broader mandate of Hydromet. Aside of environmental monitoring, Hydromet is also responsible for systematic observations on hydrometereological and climate changes, climate forecasts and international cooperation within the World Meteorological Organization and the Intergovernmental Council on Hydrometereology. While the long term objective should be the establishmnent of an integrated environmental monitoring system, in short to medium term this should be achieved by improving environmental data collection and informational exchange between Goskompriroda and Hydromet. The existing laboratories and monitoring systems of the two Committees should be integrated in a coordinated air and water quality assessment process. Goskompriroda should appraise the existing data base for air, water and soil, and order from Hydromet special surveys in the priority areas. For this purpose, an air and water quality assessment unit should be established in Goskompriroda, with the objective to coordinate environmental monitoring and enforcement. 7.11 In the local administrations, environmental management is the responsibility of the six oblast and one city Committees on Environmental Protection. Although they are subdivisions of the State Conmmittee on Environmental Protection, and report to its Chairman, the oblast Committees are also accountable to the local Governors. The Chairmen of the branches are appointed by the Chairman of the State Committee on Environmental Protection, but consultation with the oblast management is an accepted practice. One of the Deputy Governors is personally responsible for the performance of the environmental authorities. Visits at the oblast Committees show that they are understaffed and very restricted in their capacity to perform their duties by lack of proper equipment and vehicles. 7.12 Local Priorities. Although the Kyrgyz Republic is not a large country, there are very significant differences among its different regions. The topography and environmental conditions vary greatly among oblasts, as do the cultural and economic situations. As a consequence, oblasts have different priorities for development and environmental protection. The Issyk-Kul Oblast places high priority on tourism development. Protection of the lake and forests in the oblast is of high priority. The Osh Oblast focusses more on agriculture and light industries, and experiences relative shortage of clean drinking water supply in some rural areas. Dealing with uranium tailings and wastewater treatment are of more significant concern for Naryn and Dzhalal-Abad Oblasts. Water protection, reforestation and environmentally sound development of new mining operations (eg, gold mining) are the highest priorities of the Talas Oblast. In the Chui valley the main issues are water supply and land use. In addition to these differences, transport and communications among the oblasts are difficult. Consequently, it is necessary to decentralize environmental management. This requires that the NEAP process itself should be decentralized to take into account the differences among the regions. The central governmnent needs to improve communications with the Oblasts. 7.13 Recommendations. A successful implementation of a NEAP will require strengthening of the environmental authorities. In the center, additional staff will be needed by the State Committee on Environmental Protection to: (i) enhance the capacity of the Economics Department and of the Ecological Appraisal unit (which should be upgraded into an Environmental Impact Assessment Department); (ii) strengthen the policy and regulatory capability of the Committee; (iii) provide legal expertise (currently lacking in the Committee); and (iv) improve the licensing and permitting capacity of the inspectors. The Committee should be provided with office facilities and the staff should be assisted in going through essential training programs (in environmental policy, environmental impact assessment, risk assessment, use of economic instruments, computer and language skills etc.). In the branches, highest priority should be given to supporting the inspectors in performing their controlling functions (especially in the remote areas). For this purpose, the Oblast offices should be provided with additional staff, vehicles and portable monitoring equipment. Background Papers: Legislation, 132 Standards and Enforcement 7.14 The evolution of Goskompriroda into a true standard setting, monitoring and enforcement agency will require strong commitment for reform and a clear vision of the steps leading to a modern and effective institution. For this purpose, a definition of Goskompriroda's main objectives in the context of the overall policy reform, and a stronger mandate to carry out its tasks are essential. Problems of coordination with other relevant agencies in the government need to be resolved, even under the constrains of government's preoccupation with the difficulties of economic transition. In addition, better coordination of donor activities is necessary to avoid a supply-driven approach that atomizes scarce resources among a myriad of issues, problems and objectives. 7.15 A necessary pre-condition for Goskompriroda's success is to carry out a comprehensive institutional analysis to define objectives, assess realistically the human and financial resources and prepare a technical assistance and training program for institutional strengthening based on needs and absorptive capabilities. A key by-product of this exercise should be the design of a workable system of inter-institutional relations allowing Goskompriroda to carry out its mandate, in collaboration with other agencies (eg, Sanepid and Hydromet). In this respect, the environmental monitoring system should be strengthened, taking into account the role and the needs of all relevant institutions. On discrete tasks (design of policy instruments, policy enforcement, project development etc) Goskompriroda should utilize the technical assistance from various donor programs by focusing on key issues within an agreed framework. Expertise for these tasks, which is not available in Goskompriroda, should be contracted from outside (from research institutes or consulting firms) on a short term basis. Access to externally funded technical assistance should be extended to the regional branches. Enviromnental legislation 7.16 Environmental laws. The Kyrgyz Republic inherited its legislation from the former Soviet Union, including a system of environmental laws, standards and regulations. In a centrally planned, output driven economy with soft budget constraints and generous concessions for non-compliance there was little respect for legal requirements, and the environmental laws were systematically violated. Since independence a legislative reform has been in progress in the Kyrgyz Republic in order to provide an implementable, market oriented legal framework for environmental improvements. The Kyrgyz Republic's Law on Environmental Protection (LEP), adopted by the Jogorku Kenesh (the Parliament) on April 17, 1991, sets forth the basic legislative framework for preserving natural and environmental conditions and guaranteeing efficient use of natural resources. The LEP introduces a number of basic principles of environmental protection: * citizens' rights to a healthy environment; * priority of protecting the environment as a public good over private economic activities; * requirement to pay for the use of natural resources, including for pollution (the "polluter pays principle"); * use of natural resources with a view to the needs of present and future generations; * the "public right to know" principle; and * delegation of policing power to specific agencies to assure the enforcement of the environmental laws and the penalties for violations of these laws. Background Papers: Legislation, 133 Standards and Enforcement 7.17 A major contribution of the Law has been the assignment of implementation responsibilities to the national Government, the provincial Governments and the specialized environmental protection authorities. The Law also specifies: the procedures for ecological appraisal (similar to those for environmental impact assessment), with the objective to ensure that all development programs, urban plans, investment projects, production processes and activities with significant environmental impact are designed and operated in an environmentally sound manner; the safety procedures for preventing and mitigating the impacts of ecological accidents; and the procedures for establishment and management of protected areas. The LEP delegates significant rights and responsibilities, including the right to determine the special regimes of protected areas. 7.18 Currently all environmental laws and regulations, inherited from the previous system, are in a process of revision. Given the limited environmental capacity in the country, technical assistance would be needed to develop a coherent legislative system, which corresponds to the requirements of the economic transition, and to the implementation capacity of the environmental authorities. In order to allow for continuity and easy adjustment, the new legislative body should preserve the principles and definitions from the existing legislation, which are compatible with the requirements of the market economy. 7.19 Environmental Liability. The concept of liability is included in all the environmental statutes, as well as in other Laws, including the LEP, Law on Enterprises, Law on Peasant Enterprises, etc. The government may sue for monetary compensation for both economic and environmental harm, and the money would then be used to restore the environment to its original condition. Individuals and enterprises may bear both civil and criminal liability in accordance with the laws on Environmental Protection, Land Reform, Enterprises, Land and Forestry Codes of the Kyrgyz Republic for the following offenses: 3 violation of the standards, regulations, rules and other technical requirements established for environmental protection; * failure to fulfill the state requirements for environmental audits or assessments; - failure to comply with environmental requirements and regulations during planning, location, design, construction, remodeling, start-up, operation, or liquidation of enterprises, installations, mobile equipment, or other objects; * dumping untreated sewage, effluents, or emissions into the environment, or disposing without authorization harmful wastes for which disposal permits are required; * use of natural resources over and above established limits, without a permit, or after the expiration of a permit; and * failure to observe established standards and limits on pollution, or on physical and other harmful effects on the environment. 7.20 A key environmental liability issue, still not addressed by the Kyrgyz Republic legislation, concerns responsibility for past pollution in case of privatization. Both foreign and domestic investors need to know who would assume the financial burden of the cleanup. For the Government, assigning environmental liability for the inherited environmental damage is critical for assuring that the public will be protected from negligence of the new owners. There are a number of options: (i) transferring the cleanup responsibility to the new owner, provided that the price of the cleanup is deducted from the Background Papers: Legislation, 134 Standards and Enforcement purchasing price of the enterprise; (ii) the Government assumes full responsibility for past pollution, and uses some of the purchase funds (or other funds) for the cleanup; (iii) the investors pays a full price and assumes full responsibility for the cleanup, provided that the expenses are tax deductible, and that the Government provides other compensation measures (waiving export/import duties, providing other tax privileges etc.); and (iv) a combinations of the above3. A decision should be made in the Kyrgyz Republic on which of these options should be applied. 7.21 Foreign Investments Legislation. Foreign investments in the Kyrgyz Republic are regulated by the Law on Foreign Investments of June 28, 1991. The Law provides special privileges as an incentive to foreign investors to apply environmental protection measures. Foreign investors are eligible for significant tax benefits in case of: (i) introduction of new pollution abatement equipment; (ii) production of air or water protection equipment; (iii) extraction, development, or processing of mineral resources (in mining, forestry and agriculture) in an environmentally sound manner. Environmental standards 7.22 The Kyrgyz Republic still relies exclusively on the ambient environmental standards of the former Soviet Union, setting maximum permissible concentration of polluting substances in air, water and soil. Standards also exist for noise, vibration, electromagnetic fields and radioactivity. Standards were established, however, with little consideration for the costs of enforcement. They were commonly violated, with or without consequences for the polluters (sanctions and fines imposed by the environmental authorities). Many of the enterprises simply incorporated the costs of non-compliance in their financial balances. 7.23 Standards for ambient air quality for 1080 pollutants were established by two FSU government agencies -- the Ministry of Health and the State Committee of Ecology. They, and their subordinates in the republics, have been responsible for monitoring the level of compliance, resulting in an overlap in the monitoring systems. The adopted standards and guidelines exceed the capacity of the monitoring system. They are generally too stringent, and therefore are not taken very seriously by the key industrial polluters. In the case of standards for hazardous substances, when there is a need of a stringent regulation, the ambient air quality standards should be supplemented with point-source emission standards, and/or technology-based rules. Emission limits were recently introduced into the practice of environmental management, as required by the procedure of issuing emission permits and the pollution charge program. However, there is no clear and well-developed methodology to set up the limits. Phasing-in somewhat lower (and therefore more attainable) standards and/or limits, combined with case- by-case compliance schedules and firm enforcement, should gradually create a better environment for implementation of the Kyrgyz Republic air pollution policy. 7.24 Similar observations can be made for ambient water quality standards. Numerous maximum permissible concentrations were established for different polluters to protect drinking and surface waters. Most of the standards can not be adequately monitored by the existing laboratories, and only exist on paper. As in the case of air, the system of ambient water quality standards should be simplified and made attainable and enforceable. In accordance with that, waste water discharge limits should be established for all major sources. The enterprises should provide records on their discharge levels to the environmental authorities, which on their side should have the capacity to carry out regular tests of the actual content of the waste water. 3/ Major privatization programs are now in progress in all former socialist countries. The accumulated experience on dealing with the issue of environmental liability was summarized in a recent World Bank report on Environmental Liability and Privatization in Central and Eastern Europe (Report No. 11686-ECA). Background Papers: Legislation, 135 Standards and Enforcement 7.25 Recommendations. Steps to be taken include: (i) revision of the standards and limits based on projected enforcement costs and expected benefits, and setting of realistic target dates for their implementation; and (ii) incorporation of three types of standards (ambient standards, emission standards and new source performance standards) in a coherent regulatory system, (iii) development of individual compliance timetable for all major pollution sources through interactions among all concern parties (the environmental authorities, the management of the polluting sources and the public). Currently two factors -- delays in passing the new environmental laws, and lack of experience -- create obstacles to the introduction of the new standards. As a result, the environmental authorities continue to tolerate cases of non-compliance on the ground that standards are too high and that the polluter cannot possibly bear the compliance costs. Since all FSU countries are going through a similar process of improving the system of environmental standards, exchange of information and staff among the environmental authorities should be encouraged. For this purpose, assistance for the Kyrgyz Republic from external donors should be requested. At the first step, technical assistance efforts should focus on (i) methods for defining the limits, based on cost-effectiveness (cost-benefit, when possible) analysis, and (ii) strengthening the institutional and legal framework to enforce them. For the interim period when such institutional and legal capacity is still lacking, technology-based rules should be introduced for a limited number of sources (those which impose a real health hazard to the population). Enforcement 7.26 The objective of enforcement is to achieve compliance with environmental standards. There are two broad categories of enforcement instruments: command and control type measures, such as permits with legal (civil or criminal) sanctions for violations, and market based instruments, such as pollution fees and extraction fees for natural resources (see following box). Command and Control Methods 7.27 Until recently all FSU countries relied heavily of central planning and direct control from Moscow in setting their environmental regulations. Similarly to other policy areas, environmental requirements were issued without comprehensive economic analysis, and effective enforcement procedures. In this sense, the policy measures inherited from the FSU focused mostly on commands, and less on control for implementation. While most of the CAC methods, developed in the West, were also introduced in the FSU, their efficiency is much lower, due to weak enforcement. 7.28 Emission permits. All enterprises are required to obtain emission permits. The emission limits develop for each new (or substantially modified) enterprise are incorporated in a maximum permissible emissions book. The emissions book serves to document emission rates and control methods and subsequent changes to those emissions and controls. These emission rates are effective for one year after start-up. Then, adjustments are made based on operating experience during the first year and Goskompriroda (the central or the oblast level inspectorate, depending on the size of the enterprise) issues a permit that officially establishes the emission limits. If ambient standards are exceeded outside of the sanitary protection zone, the permit will be temporary waived and the enterprise must submit a plan to Goskompriroda that specifies the steps that will be taken to further reduce the emissions. Lack of proper monitoring constraints the efficiency of the emission permits as a regulatory instrument. Background Papers: Legislation, 136 Standards and Enforcement Regulating Environmental Externalites: Command-and-control versus Market Incentives Economists view the environment as an economic good: the society cannot five andfunction vAthout dean water and:air, or withoutnatural resources, like iminerals and crops. Many environmental resources, such as air, are freely accessible to everyone, and easily polluted by .groups and individuals during their activities. Pollution imposes social costs because it reduces the .value: of these assets for Canyone who uses them. In a market econiomy polluters do not volunteer to pay for these costs. When a polluting private enterprise estimates the cost -of production, it generailly counts only the cost of the material and labor raquired to make a product-it does not consider costssuich as the damage to public health in near-by communities caused bythe pollution. Economists call this problem a negative environmental external. people experience costs or losses in welfare due to the activities of the factory, but they are not compensated for the losss (theoretically, the enterprise might pay the community for the cost of special care for thier children, for putting air purifiers in their houses, or for relocating ,their homes to a place wth claner air), Economiststare quick to point outhat environmental externalities may iibe positive, too. For examplei, only one person may plant a garden, but everybody who appreciates the beauty .of the garden benefits. From an economic perspective, a negativerenvionmental externality should be 'Intemalized'-the polluter should pay the costs he or she caused to the communities. A free market rarely forces a polluter to acknowledge :these costs to society-government usually must intercede and compel the polluter to pay. There are two ways for the government to intervene: * "Command-and-control' regulation (CAC -when the government sets and enforces standards for the amouont of polution that can be relesed into the environment, and prescribes the technology or behavior that must be used to meet those standards, and * ^Market incentives when the: government sets pollution standards and then applis charges, fines, or tradeable pollution permits to enforce those sandards, but does not dictate the technology or behavior that must be used-leaving it up to the individual polluterto find the most eficient means to reduce pollution. These two approaches share common ground and common goals: they both rely on pollution prevention legislation and standards, and they both :'internalizelthe externalites-forcing polluters to recognize the cost to society of their activities, and to develop more environmentally-friendlytbusiness behavior. The approaches differ In the degree of state Intervention, however, whiKh Is much higher under the command-and-control approach. Manyveconomistsargue thatCAG.costs socetymore than market-incentiveapproaches. Itrequiresalarge bureaucracy to administer it, slows private decision-making, and discowrages innovations, because there are no financial Incentives to reduce pollution beyond what is required or to experiment wkth leSs poluting production techniques. All agree, however, that when social risks bre very high, such as in case of radiation hazards, CAC may be the safest approach. Market-based instruments for environmental management work best in a market economy. In a market ieonomy, if ienteprises arrequlted to pay tenvironmental charwes which take account of the social costs of extraction. and pollutionmof naturat resources,the NOpration of enterprises will be modified to make more efficient use of resources and to reduce the volume andhpotenial toxicity :of any wastes that are produced. The former centrally planned economies are eagw to aboish inefficnt CAC regulations and apply amarketbased approach. Westemr economies havedeveloped this step only recenety, however, within mature market economies, and with welstablished, firmly enorced command-andconl regulationsothstill lacking In the transitional countries. In the KyrgyyzRepublic,0 tho iitional farnl or at martecnomywUidevelop over an extended period. It will take time before property rights aare arified and market rules become effective. The dominanoe of state-owned industries wih limited acountability and soft budget constrai.sta means that economi incentives provided. by market-based instruments inevitably will be less effective. Thereforea shifting from CAC to market based instruments should also happen over time1 in parallel with the transition to a market economy. : : 7 f :: :: :: :: TTy; ::me n:; ar: a :X anf:: : o:: to:0 a : make Background Papers: Legislation, 137 Standards and Enforcement 7.29 The existing system of annual reviews allows for issuing temporary permits, which creates considerable uncertainty for the enterprises and puts a heavy administrative burden on the environmental inspectors. A new permitting system should be designed based on integrated air and water permits with a validity of five years. In order to simplify the permitting process, Goskompriroda should introduce minimum emission values, below which changes in the operation of an enterprise would not require new assessment. While the new integrated perm