Long-term stability in the region and prospects for future economic growth in all the countries of Central Asia largely depend on the successful regional cooperation and consideration of all national strategic interests.

In response to requests from the Central Asian governments, the World Bank Group is actively engaged in the dialogue on water/energy issues with the five countries of Central Asia (Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan). In its work the World Bank Group operates in full accordance with the UN General Assembly Resolution of 19 December 2008 - “The Reliable and Stable Transit of Energy Carriers and Its Role in Ensuring Sustainable Development and International Cooperation”, acts in the best interests of all its member countries, and takes utmost care in the application of its policies and procedures.

In recent years, the World Bank in Central Asia has supported a number of energy and water resources projects, studies, and strategies such as the Central Asia Regional Economic Cooperation (CAREC) energy strategy that was endorsed by all member countries at the November 2008 Ministerial Conference in Baku. The Bank is also providing technical assistance to assess viability and impact of several proposed energy development initiatives in the region.

The World Bank Group believes that it is important to elaborate a Regional Energy Development Framework for Central Asia which would look at all existing and potential energy generation resources in the region, including hydro, coal, thermal power, and others. Such a framework would propose a sequence of actions that will ensure adequate attention to and proper balance between the urgent domestic energy needs of the upstream countries during winter, and environmental and hydrological needs of the downstream countries during summer.

The proposed framework will also focus on maximizing energy export potential within the region during winter and beyond the region during summer. The World Bank Group plans to contribute to development of comprehensive short, medium, and long-term plans of actions for consideration of all Central Asian countries as well as potential investors.

The establishment of a Central Asia - South Asia Regional Energy Market would be part of the plan of action to realign the energy export potential during summer. In parallel, the WBG will review water resource development and water management issues with stakeholders and partners in Central Asia with a view to support the development of these resources and to facilitate adequate and fair access to these resources by all stakeholders.

With regards to Rogun HEP, proposed by the government of Tajikistan, the World Bank clarifies that it has only committed to provide financing to the Government of Tajikistan to carry out studies to assess the possibility of the project, with particular emphasis on its potential regional impacts. The studies include a Techno-Economic Assessment and an Environmental Impact and Social Assessment and will be carried out by internationally recognized consultant firms, to be hired in coming months under World Bank procurement guidelines.

The Terms of Reference of these studies take into account issues for consideration identified by the riparians. In addition, as required by its safeguard policies, the Bank will establish an International Panel of Experts who will provide independent opinion on the outputs of the studies. In parallel to the above studies, to ensure transparency and inclusion of all the stakeholders’ concerns, the World Bank has recently initiated consultations in all riparian countries (Afghanistan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan). These consultations will continue in 2009-2010, as the results of the studies and the views of the independent experts become available and are reviewed by the riparians.