Kyrgyz Republic: Issyk-Kul Sustainable Development Project

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Lessons

Key stakeholders should be consulted during project preparation.

A substantial change was made in the scope of the solid waste management (SWM) subcomponent of this project because of disagreement by the State Agency on Environmental Protection and Forestry to the proposed sanitary landfills and the unavailability of suitable land. This disagreement would have been dealt with earlier on had discussions and consultations with key stakeholders been made during project formulation. Early attention to stakeholder differing views and perspectives provides greater room for their settlement.

Project Cycle Stage:

Preparation

Governments should lead the implementation of Asian Development Bank- (ADB) assisted sovereign projects.

The project management office (PMO) within the Ministry of Finance (MOF) at the central level and the project implementation office (PIO) under the Issyk–Kul oblast (territorial administrative unit) were established with all staff outsourced. No personnel or official from the MOF or the Issyk–Kul oblast were actively involved in both offices, and although a steering committee, headed by a representative of the Prime Minister’s office, was created to oversee the function and activities of the PMO and the project executing agency (EA), the MOF, the committee only met once. This arrangement created difficulties for the PMO and the PIO staff who had inadequate knowledge of government dynamics and processes. Both the PMO and the PIO were thus unable to provide adequate guidance to project consultants and contractors, which may partly account for why they performed poorly overall. Notwithstanding the expertise of outsourced staff, technical or otherwise, the governments, through the EAs, should take the lead in implementing ADB-assisted sovereign projects to ensure their success.

Project Cycle Stage:

Preparation

Implementation

The engagement of qualified consultants is critical to project success.

Failure to recruit a qualified design and supervision consultant (DSC) was the primary reason for the 3-year delay in the completion of this project. While such delay was initially attributable to the political turmoil of June 2010 that significantly pushed back procurement activities, poor performance by both the terminated original DSC and the second DSC caused the detailed designs to be completed only in June 2014, or about 4.5 years after loan effectiveness, delaying further the recruitment of civil works contractors and suppliers. To avoid a repeat of this experience, the criteria and selection method for the consultancy requirements of future projects should be carefully established to preclude technically and financially unqualified applicants. Consulting services and civil works should also be optimally sized and packaged to attract the most qualified bidders and avoid unnecessary fragmentation that can only complicate and lead to inefficiencies in contract management and administration.

Project Cycle Stage:

Implementation

Reduction of nonrevenue water (NRW) requires more than just infrastructure improvements.

The project was not able to substantially reduce NRW. This was because of the limited extent to which pipeline rehabilitation was included in the project design. It also did not help that the twinning agreement entered with a water supply and sanitation utility in the Philippines, designed to enhance the capacity of the Vodokanals (municipal water and sewerage service providers) in billing and collection, installing water meters and decreasing NRW, and improving the operation of water supply and sanitation (WSS) facilities, fell through after the first diagnostic visit. Future similar projects can do better by combining infrastructure improvements with institutional reforms and capacity strengthening to reduce NRW. Adopting a zoning approach or a district metering system may be explored in future NRW management programs.

Project Cycle Stage:

Preparation

Implementation

Several policy and institutional issues constrain the timely completion and sustainability of ADB-assisted urban infrastructure projects in the Kyrgyz Republic.

This project’s experience highlighted some of the policy and institutional issues that need to be immediately addressed to improve the performance and sustainability of ADB-financed projects, particularly in the water sector of the Kyrgyz Republic. The complicated government procurement review process should be streamlined. A unified decision-making mechanism, especially for projects involving multilevel government agencies and service providers, should be established. The need for adjusting tariffs, despite political resistance, should be reconsidered. Stronger operation and maintenance measures should be institutionalized. Closer engagement of local governments and Vodokanals and Tazalyks (municipal solid waste management service providers) in project management should be ensured. Meantime that the country is still dependent on the former Soviet Union for most of its equipment needs, the government should also request ADB for a waiver of its requirement to procure project equipment only from ADB member countries.

Project Cycle Stage:

Preparation

Implementation

Background

Lake Issyk–Kul in the eastern part of the Kyrgyz Republic is the world’s second largest saline lake; a Ramsar site of globally significant biodiversity; and a United Nations Educational, Scientific and Cultural Organization designated biosphere reserve. In September 2009, the Asian Development Bank (ADB) approved a $16.5 million loan and a $13.5 million grant for the Issyk-Kul Sustainable Development Project. The project aimed to preserve the lake’s environment and improve the living conditions and public health in the cities of Balykchy, Cholpon-Ata, and Karakol in Issyk–Kul oblast (territorial administrative unit). Three outputs ─ improved infrastructure, strengthened enterprise resource management, and project implementation support ─were delivered to achieve the project aim.

Sewerage, sanitation, and water supply systems were rehabilitated or expanded. Equipment and vehicles for operation and maintenance (O&M) of the project facilities and for solid waste collection and transport were provided to all three municipal water and sewerage service providers (Vodokanal enterprises). People with access to sewerage and on-site sanitation consequently rose to 108,600 in 2016, compared to 45,000 in 2015. The rehabilitation of water production and supply system ensured the provision of reliable, safe water to about 20,000 already-connected households, while the extension of the distribution networks benefited 49,300 more. A total of 22 schools were also provided with new toilets and handwashing facilities, benefiting about 27,800 schoolchildren and teachers.

The viability of establishing a regional landfill, covering all three project cities, was examined during project inception. The plan was, however, not accepted by the State Agency on Environmental Protection and Forestry because of inadequacies in the proposed design. Furthermore, as establishing a regional sanitary landfill would cost more than originally allocated for and adequate land could not be secured on time, the idea was completely dropped, and existing dump sites were instead improved. To increase the life of the dump sites and expand solid waste collection coverage, each Tazalyk (municipal solid waste management service provider) strengthened its control over the dumping of waste within the designated areas, weighing waste delivered to the site, and compacting and covering accumulated waste with soil at regular intervals. Solid waste collection services benefited 140,000 people in 2018, compared to the 133,500-target.

The financial management and management information systems of the Vodokanals and Tazalyks were improved through training and the provision of equipment and software. A geographic information system was installed to develop city base maps and create a database for O&M of the water supply and sanitation (WSS) facilities. A calibrated network model to assess system performance and plan for extensions and reinforcements was likewise subsequently developed. The laboratories of the Issyk–Kul Territorial Department for Environmental Protection and Forestry (IDEP) in Cholpon-Ata and the Biosphere Reserve Directorate (BRD) in Balykchy were upgraded.

Improved urban basic services, made possible by the project, contributed to the reduction of waterborne diseases: as against 215 in 2012 and 155 in 2015, there were only 88 recordedwaterborne illnesses in Issyk–Kul oblast in 2017. As a result, the average annual household expenditure on these illnesses declined to 8.5% of the annual household income in 2017, compared to 16.1% in 2012. Cleaner household and city environments are expected to over time lead to the preservation and improved water quality of the Issyk-Kul lake.

The project had the Ministry of Finance (MOF) as executing agency. A project management office within the MOF and a project implementation office within the Issyk–Kul oblast

administration carried our the project on a day-to-day basis.

Project Information

Project Name:

Issyk-Kul Sustainable Development Project

Report Date:

July, 2019

Main Sector:

Water and Other Urban Infrastructure and Services

Country:

Kyrgyz Republic

Project Number:

41548-013