Strengthening the Economic, Financial and Technological Dimensions of Water Efficiency in Uzbekistan

2. Water security in Uzbekistan: A cornerstone for growth

Abstract

Uzbekistan faces severe and growing water stress, driven by drought, rising water demand, ageing infrastructure and heavy reliance on intensive irrigated agriculture. This chapter analyses the key pressures on water resources, the governance and institutional framework of water-related sectors and the challenges affecting water supply, sanitation and infrastructure. It also reviews national strategies and policy reforms aimed at improving water efficiency and strengthening long-term water security.

The importance of ensuring water security for broader economic development and resilience is an internationally recognised issue which has gained traction in both OECD countries and non-OECD countries. The economic case for investment in water security is robust, particularly increasing pressure on water resources (OECD, 2022[1]).

Uzbekistan suffers from high water stress with water insecurity continuing to escalate in the country (Ministry of Water Resources, 2022[2]). This situation can be attributed to several factors, including, but not limited to, the climatic and topographic conditions of the country, and challenges in water resources management. As Uzbekistan is dependent on transboundary water sources, renewable water resources are significantly lower than current water withdrawals, making Uzbekistan a water-deficient country (Ministry of Water Resources, 2023[3]).

2.1. Increasing pressures on a water-stressed country

Agriculture dominates water use, accounting for 90% of all water consumed in the country. The water usage of other sectors in Uzbekistan constitutes a much smaller quantity, including the municipal sector (4.5%), industry (1.4%), fisheries (1.2%), thermal power (0.5%) and other sectors (1%). The expected additional demand for water is significant, given a projected population increase of five million inhabitants by 2030, resulting in an anticipated 18-20% increase in overall water demand (Ministry of Water Resources, 2023[3]).

Uzbekistan has implemented water management strategies focusing on water supply and distribution, such as building reservoirs and canals, designed to optimise water use (S. M. Koybakov, 2020[4]). However, it is expected to face decreasing availability of water resources. Over the past 50 years, the volume of glaciers in Central Asia, which feed Uzbekistan, has decreased by an average of 30%. Other expected challenges include a projected increase in urbanisation rate to up to 60% by 2030, with associated challenges including soil sealing1 and accelerated economic growth, which will require an increase in water supply from the current rate of 1.9 billion m³ to 3.5 billion m³ by 2030 (Ministry of Water Resources, 2022[2]). These figures underscore the critical role of effective water management in supporting Uzbekistan’s economic and environmental sustainability (Scientific-Information Center ICWC, 2023[5]).

According to national stakeholders, water quality is considered good (Ministry of Water Resources, 2022[6]). However, increasing pressures are mounting on the quality of water resources, which can also render the issue of water scarcity even more acute (Jones, Bierkens and van Vliet, 2024[7]). These rising pressures can be attributed to factors such as low levels of domestic wastewater treatment, return flows from irrigated fields that impact water quality and increased water demand and subsequent effluent discharges through the development of economic activities.

As agriculture is the largest user of water resources in the country, Uzbekistan has over 4.3 million hectares of irrigated land, which account for 14% of agricultural land (Ministry of Economy and Finance, 2024[8]). Water-saving technologies have been introduced on 46% of irrigated lands (Ministry of Ecology, 2023[9]). However, the irrigation network’s efficiency is 0.63, indicating that 37% of the water is lost during transport. Additionally, the pumping stations supporting irrigation are severely degraded, with over 60% of the equipment exceeding its service life and no longer operationally viable. Across the length of the irrigation network, 44% of the trunk and inter-farm channels require repair and restoration, and 16% require reconstruction. Eighty per cent of the pumping stations require reconstruction or significant repairs (Ministry of Water Resources, 2022[2]).

In 2022, 67% of the centralised drinking water supply was provided by groundwater. Between 2014 and 2022, the volume of groundwater extraction in the republic increased by 30%. In certain areas of the Navoi, Samarkand, Jizzakh, Kashkadarya, Namangan, Fergana and Andijan regions, the groundwater level has dropped by as much as 5 metres. Consequently, Presidential Regulation No. 439 was issued in 2022, imposing a moratorium on drilling wells and on the use of groundwater (Government of Uzbekistan, 2022[10]).

Additionally, the water and wastewater networks have significant maintenance, rehabilitation and replacement needs. Non-revenue water in Tashkent City ranges from approximately 30% to 60% (Ministry of Water Resources, 2022[2]). This wide range of figures indicates limited data reliability but also significant losses of large volumes of treated water through ageing infrastructure, some of which is over 40-45 years old.

Sewerage coverage across Uzbekistan remains limited, with only 79 out of 119 cities having sewage treatment systems. Furthermore, even in cities equipped with sewerage systems, only 57.1% of the population is provided with adequate sanitation services. At the national level, only 17% of the population is covered by the centralised sewage collection and treatment system.

Even where sewage treatment systems exist, capacity is limited and urgent repairs are required. Sewage treatment plants in Uzbekistan were constructed primarily in the 1970s and 1980s and have not undergone significant modernisation since 1993. These plants now face challenges including deteriorated infrastructure, outdated equipment, energy inefficiencies and operational difficulties due to rising electricity tariffs and limited funding.

At the end of 2020, the capacity of treatment facilities was 3.821 million m³ per day, with 75% of capacity already being used, and in central cities, such as Tashkent, the utilisation was 88%. The total recorded length of networks also needs repair and upgrade, with 1.9 out of the total 8.6 thousand kilometres of the network recorded as beyond optimum operating life and requiring upgrades.

Water and sanitation service provision in Uzbekistan is predominantly delivered and overseen by a public operator, although the current emphasis is on increasing private sector participation. Several private entities operate in the sector, notably JSC “Musaffo Obi Hayot Magistral Suv Ta’minoti” in Tashkent, JSC “Damkhoja Magistral Suv Ta’minoti” in the Samarkand Region and JSC “Chimgan-Chorbog Magistral Suv Ta’minoti” in the Tashkent Region.

Uzsuvtaminot acts as the national holding company for water and sanitation, overseeing regional and municipal service providers across both urban and rural areas. It was established in 2019 by presidential decree. The provision of drinking water and sanitation services in Uzbekistan is structured under a centralised, state-led model, with operational responsibilities delegated to regional and local entities. At the top of this framework is Uzsuvtaminot JSC, a joint-stock company wholly owned by the State Assets Management Agency. Established as the national operator, Uzsuvtaminot is mandated to lead the strategic development and modernisation of the country’s water and sewerage systems. Its core responsibilities encompass the formulation of sector-wide policy, the management of infrastructure investment programmes, including those funded by international donors, and the oversight of financial mechanisms such as tariff collection and revenue management.

Beneath the strategic oversight of Uzsuvtaminot, the day-to-day delivery of water and sanitation services is administered by a network of subsidiary bodies. These primarily consist of Regional Vodokanal enterprises, which are themselves structured as joint-stock companies, alongside several municipally owned service providers. While these regional and municipal entities retain a degree of operational autonomy, they function within the overarching strategic and regulatory framework of Uzsuvtaminot. Their principal duties include the operation and maintenance of local water and sewerage networks, ensuring service continuity and managing direct customer relations. This tiered governance model facilitates a system of decentralised operations under a framework of centralised strategic control, intended to align local service delivery with national standards and investment priorities.

Uzsuvtaminot is overseen by the Ministry of Construction, Housing and Communal Services, which conducts and permits water and sanitation utility construction and improvement projects. The Ministry of Economy and Finance oversees water and sanitation services related budgets, funds and sets tariff policies, whilst the Ministry of Health supervises the quality of tap water within the water supply network. A full breakdown of Uzbekistan’s agencies related to water supply and sewerage services can be found in Annex A.

2.2. Improving water efficiency: a national priority for Uzbekistan

In view of the water resource situation in Uzbekistan, improving water efficiency is a national priority. In July 2021, Presidential Decree UP-6024 approved the Concept for the Development of the Water Sector of the Republic of Uzbekistan for the period 2020-2030. The main objective of the Concept is to create conditions that meet the growing water needs of the population, economic sectors and the environment. It seeks to ensure the reliable and safe operation of water infrastructure, promote effective management and rational use of water resources and improve the reclamation state of irrigated land (Government of Uzbekistan, 2020[11]).

The Concept also prioritises achieving water security amid increasing water scarcity and the challenges posed by droughts and other impacts. Its phased implementation is operationalised through Water Sector Development Strategies approved on a three-year basis. The 2021-2023 Strategy has been approved and is under implementation, while the 2024-2026 Strategy has been drafted and is pending formal adoption. These strategies are designed to align with high-priority areas and include target indicators for the corresponding period, including an increase in the efficiency of irrigation systems, a reduction in the critical level of groundwater (0-2 metres) and the introduction of water-saving technologies (Scientific-Information Center ICWC, 2023[5]).

In the Decree, a range of policy, regulatory, economic and technical objectives are to be achieved by 2030, with quantitative targets such as:

• The development and approval of a new Water Code, adopted on 30 July 2025, represents a major step in consolidating Uzbekistan’s legal framework for water governance. The Code codifies existing legislation related to water allocation, use, and protection, introduces clearer provisions for public-private partnerships in water infrastructure and strengthens mechanisms for transparent and flexible water distribution across sectors.

• An annual water saving of 3 billion m3 of water, achieved by multiplying tenfold the total area of application of water-saving technologies over ten years, including almost a fivefold increase in the cultivated area that benefits from drip irrigation.

• Saving 4 billion m3 of water by increasing the proportion of concrete irrigation channels by ten percentage points and improving the efficiency of the irrigation network.

• Reducing energy consumption in pumping stations by 2 million kWh per year by replacing almost 2,000 electric motors and 1,750 pumping units with energy-saving equipment.

• Reducing the share of budget funds allocated to water-related sectors by 30% by introducing market principles.

• Implementing 45 projects based on the public-private partnership principles, and;

• Equipping large water facilities with smart water systems, reaching 18 576 points with an automated monitoring system for reclamation wells.

As of 2025, the Law of Uzbekistan on Water and Water Use (1993) remains in force. The law assigns responsibility for water governance to the Cabinet of Ministers, local authorities and designated state bodies, including the Ministry of Water Resources, the National Committee on Ecology and Climate Change and the State Committee for Geology and Mineral Resources, operating directly or through basin administrations (Orazaliev et al., 2024[12]).

A new law, approved by the Senate in April 2025, introduces amendments to the Administrative Liability Code, the Tax Code, and the Law on Licensing, Permit and Notification Procedures of the Republic of Uzbekistan. The amendments establish liability for illegal well drilling and non-compliance with regulations aimed at preventing hazardous geological processes, a penalty tax (five times the standard rate for groundwater extraction without water-metering devices) and improved procedures for issuing permits related to groundwater drilling. The law is intended to prevent the unauthorised use of groundwater, create more favourable conditions for legitimate drilling activities and promote the rational and sustainable use of groundwater resources.

References

[13] FAO and ITPS (2015), Status of the World’s Soil Resources.

[10] Government of Uzbekistan (2022), Resolution of President of the Republic of Uzbekistan on Additional measures for the protection and regulation of rational use of underground water resources, https://lex.uz/ru/docs/6311247.

[11] Government of Uzbekistan (2020), Decree of the President of the Republic of Uzbekistan No. UP-6024 On approval.

[7] Jones, E., M. Bierkens and M. van Vliet (2024), “Current and future global water scarcity intensifies when accounting for surface water quality”, Nature Climate Change, Vol. 14/6, pp. 629-635, https://doi.org/10.1038/s41558-024-02007-0.

[9] Ministry of Ecology, E. (2023), National State of the Environment Report: Uzbekistan, International Institute for Sustainable Development.

[8] Ministry of Economy and Finance (2024), The Cadastre Agency Ministry of Economy and Finance under the of the Republic of Uzbekistan..

[3] Ministry of Water Resources (2023), Water resources of the Republic of Uzbekistan: current status and future plans, https://events.development.asia/system/files/materials/2023/05/202305-water-resources-republic-uzbekistan-current-status-and-future-plans.pdf.

[2] Ministry of Water Resources, I. (2022), The concept on Water Sector Development for 2020-2030.

[6] Ministry of Water Resources, O. (2022), Decree - On approval of the concept of development of water management sector of the republic of Uzbekistan for 2020-2030, Ministry of Water Resources of the republic of Uzbekistan.

[1] OECD (2022), Financing a Water Secure Future, OECD Studies on Water, OECD Publishing, Paris, https://doi.org/10.1787/a2ecb261-en.

[12] Orazaliev, K. et al. (2024), “Current regulation of water relations in Central Asia”, Regional Science Policy & Practice, Vol. 16/9, p. 100038, https://doi.org/10.1016/j.rspp.2024.100038.

[4] S. M. Koybakov, M. (2020), “NEW METHODS TO PROTECT YEAR-AROUND OPERATION CANALS FROM SNOW”, NEWS of National Academy of Sciences of the Republic of Kazakhstan, Vol. 6/444, pp. 102-109, https://doi.org/10.32014/2020.2518-170x.136.

[5] Scientific-Information Center ICWC (2023), Water Yearbook: Central Asia and Around the Globe, http://www.cawater-info.net/yearbook/2023/05_yearbook2023_uz_en.htm.

Note

← 1.  Soil sealing is defined by the FAO ‘soil sealing’ as the permanent covering of the soil surface with an impermeable material, causing increased flooding risks, biodiversity loss, soil degradation and other negative outputs (FAO and ITPS, 2015[13]).