ABSTRACT
Water is essential for food and energy security, human and environmental health, and building resilient communities, especially in the face of climate change. In Central Asia, developing quality water infrastructure has been a critical issue in achieving sustainable and inclusive growth. Quality infrastructure can be measured by how much the infrastructure increases economic and social value through the provision of a wide range of services. Much of the region’s water infrastructure has not been upgraded since the Soviet era and combined with climate change, the geographical landscape, and poor supply management, governments continue to struggle with addressing an enormous infrastructure financing gap.
This chapter uncovers the underlying challenges governments face with expanding and upgrading water infrastructure. The authors also investigate opportunities for closing the financing gap by bringing in private investors. They propose policy responses and new concepts for governments to maintain water infrastructure development, one of them being the utilization of spillover tax revenue to compensate for risk and financing further expenditures to supporting small and medium-sized enterprises. Additionally, these spillover effects can drive sustainable development by supporting secondary markets, technology advancements, climate change mitigation, and environmental protection.
