From Basin Plans to Sustainable Financing: Kyrgyzstan Outlines Priorities for Water Sector Development

Issyk-Kul Region, August 30, 2026 – The Water Resources Service under the Ministry of Water Resources, Agriculture and Processing Industry of the Kyrgyz Republic hosted a workshop titled, "Perspectives on the Medium- and Long-Term Development of the Country's Water Sector."

September 2, 2026

The event brought together approximately 100 managers and specialists from the Water Resources Service’s central office, territorial and basin administrations, subordinate organizations, and project implementation units. Representatives from the United Nations Development Programme (UNDP) and the International Water Management Institute (IWMI) also participated in the workshop. 

Participants jointly analyzed the current state of water management and discussed practical solutions to improve the efficiency of water resource management. Particular attention was given to the financial sustainability of basin management, climate change adaptation, digitalization, water-saving technologies, and improving the operational efficiency of irrigation systems. 

These focus areas align directly with the objectives of the National Development Program of the Kyrgyz Republic until 2030, which envisions the sustainable development of key economic sectors and an enhanced quality of life for the population. A reliable water supply is a prerequisite for the development of agriculture, energy, processing industries, tourism, and the broader regional economy. 

"Effective water resource management is impossible without a sustainable financial foundation. We must transition from merely identifying needs to developing realistic basin plans backed by financial calculations, clear priorities, and transparent funding sources. The new Water Code creates the conditions for this systemic work, and the proposals developed at this workshop should help translate these provisions into practical solutions at the level of each river basin," noted Ulanbek Torogeldiev, Deputy Minister and Director of the Water Resources Service. 

 

Financial Sustainability as the Foundation of Basin Management 

As part of the European Union-funded UNDP project "Promoting Public Financial Management Reforms for the Achievement of the Sustainable Development Goals in Kyrgyzstan," UNDP international expert Alexander Martusevich presented modern approaches to water sector financing and international best practices for ensuring the financial sustainability of basin management. 

Discussions focused on transitioning from predominantly short-term funding to a comprehensive approach where financial plans become an integral part of medium-term basin plans. 

"Public financial management determines how Kyrgyzstan allocates and utilizes public resources. The project strengthens programmatic and gender-responsive budgeting, improves public investment management to enhance the quality of infrastructure spending, and supports sustainable financing for the water sector," emphasized Patrick Haverman, UNDP Deputy Resident Representative in the Kyrgyz Republic, in April 2026 during the launch of the project. 

 

UNDP’s work to strengthen the financial sustainability of the water sector includes: 

  • Assessing existing financial flows and investment needs across the country’s five main river basins. 

  • Preparing recommendations for additional funding sources tailored to the specific characteristics of each basin. 

  • Analyzing opportunities to utilize sections of irrigation canals for mini-hydropower development without transferring water infrastructure management rights. 

  • Exploring the potential of using artificial water bodies for renewable energy, aquaculture, recreation, and tourism, while strictly adhering to environmental and social safeguards. 

  • Developing proposals for environmental funds, compensation mechanisms, and financial incentives to promote rational water use. 

  • Supporting the improvement of pricing mechanisms for water management services and drafting relevant regulatory and legal acts. 

  • Designing procedures, guidelines, and budget templates to integrate basin plans into medium-term and annual budgeting processes. 

  • Building the capacity of basin authority staff and basin council members in financial planning, investment appraisal, and innovative financing. 

This work will facilitate the practical implementation of the new Water Code of the Kyrgyz Republic, which entered into force in January 2026, establishing the legal framework for basin management, the operations of basin authorities and councils, and the development of basin plans. 

A financially sustainable water sector is also crucial for achieving agricultural development goals. Sustainable water supply, the modernization of irrigation infrastructure, and the adoption of water-saving technologies lay the groundwork for increasing agricultural productivity, bolstering food security, and expanding export capacity—priorities enshrined in the Decree of the President of the Kyrgyz Republic "On Measures for the Further Development of the Agro-Industrial Complex of the Kyrgyz Republic"

From Discussion to Practical Solutions 

Workshop participants collaborated in four thematic groups dedicated to rational water resource management, climate risks, the digitalization of the water sector, modern irrigation technologies, and improving water use efficiency. 

A separate anonymous survey gathered specialists' views on the current financing challenges faced by water management organizations, the state of basin planning, potential supplementary resource streams, readiness to pilot new mechanisms, and training needs. The collected data will be synthesized and utilized by the Water Resources Service and UNDP in planning subsequent activities. 

The proposals generated by the working groups will serve as the foundation for further dialogue among the Water Resources Service, the Ministry of Finance, basin institutions, and development partners. The next step involves translating the formulated priorities into financially viable measures, procedures, and potential pilot initiatives. 

The financial sustainability of the water sector is not merely about infrastructure maintenance. It is a prerequisite for reliable water supply, food and energy security, climate change adaptation, and the sustainable development of Kyrgyzstan’s regions. 

The UNDP project "Promoting Public Financial Management Reforms for the Achievement of the Sustainable Development Goals in Kyrgyzstan" is implemented in partnership with the Ministry of Finance and the Ministry of Water Resources, Agriculture and Processing Industry of the Kyrgyz Republic, with financial support from the European Union.