National Policy Dialogues under the EU Water Initiative Bo Libert, UNECE UNECE

National Policy Dialogues (NPD) National Policy Dialogues (NPD) on IWRM and WSS - the main operational instrument of the European Union Water Initiative (EUWI) in EECCA. UNECE is key strategic partner on IWRM, transboundary waters => NPDs are part of the Water Convention programme of work OECD is key strategic partner on water supply and sanitation and the economic and financial dimensions of water resources management

NPD – a policy process A platform for policy discussions, preparation and implementation of national policy documents (e.g. Governmental and Ministerial Orders) – “policy packages” NPD Steering Committees are led by a senior official, usually the Deputy - Minister for Environment/Water Resources High-level officials representing different sectors of economy (water, agriculture, industry, other) participate Stakeholders include governmental entities, NGOs, science, private sector entities Donors and international organisations take part in the SCs meetings The dialogue is supported by robust analytical work Policy dialogues are based on consultations with relevant ministries, agencies and institutions (including science and academia), non-governmental organizations, parliamentary bodies and other national and international organizations. The dialogue process is usually conducted under the leadership of a high-level government representative such as the (Deputy) Minister of Water Resources or the Chairman of the State Water Committee. In the respective countries, national Steering Committees (SCs) are established, which include representatives of relevant ministries, agencies and institutions, as well as non-governmental organizations. The SCs meet at least on annual basis at the national level. They discuss key national water policy issues and adopt decisions on NPD activities. In the countries where NPDs/IWRM are implemented, the following components are included in the NPD work: the preparation of mapping reports on the IWRM situation, including international and national projects and programs, and the elaboration of roadmaps to achieve IWRM. These documents are important to avoid duplication of activities and to ensure clear and transparent communication and coordination with national as well as international organizations involved in the NPD process. At present, such mapping reports are prepared when funding is available for such activities; therefore, they are not prepared in all the EECCA countries where NPDs are implemented. On the content side, an important outcome of the NPDs are so-called “policy packages”, such as legislative acts, strategies, ministerial orders and plans of implementation. In order to select policy packages for its involvement (upon request of the participating country) UNECE gives priority to the implementation of UNECE instruments, such as the Protocol on Water and Health and to transboundary issues, including the application of different guidelines developed by UNECE (monitoring and assessment, flood management, climate change, etc.). The implementation of the relevant EU strategies and legislation, such as the EU-CA Platform, EU Water Framework Directive, etc., are also important bases. In all cases, the availability of resources is a precondition for engagement in the development of policy packages. Although in the different countries the NPDs follow the same methodology, the NPDs/IWRM processes in all countries are unique as far as approaches for introducing IWRM principles, substantive agendas of the dialogues and dynamics of the processes are concerned. Implementation depends on the existing objectives for IWRM in each country, the legislative and institutional framework, as well as the political and socio-economic situation. In addition to its original function of supporting the development of policies on IWRM and WSS, in almost all countries the NPDs and their Steering Committees have become a national coordination mechanism for water-related projects, carried out under the auspices of international organizations (e.g. EC, UNECE, UNDP, World Bank, OECD) and donor countries (e.g. Finland, Norway, Switzerland, and United States). This contributes to the further strengthening of national institutions for implementation of IWRM principles and WSS agenda. 3

Major issues addressed by the NPDs IWRM Strengthening water legislation (EU WFD and other directives, Water Convention) (AM, AZ, GE, MD, UA, TJ, TM). Issues of drinking water quality (UNECE – WHO Protocol on Water and Health) (MD, UA, AM, GE). Synergies on WSS with OECD! Transboundary water cooperation (UNECE Water Convention) (AZ, GE, MD, UA, TJ) Adaptation to climate change (MD, UA).

Major issues addressed by the NPDs IWRM The OECD has initiated work on the economic and financial dimension of WRM in selected EECCA countries The use of economic instruments for water resources management (Armenia, Azerbaijan, Georgia, Kyrgyzstan) business models for water users associations or for river basin management agencies (Ukraine). Economic instruments could be more systematically used to manage water resources in EECCA: they stimulate water efficiency, help to allocate water where it is most needed, make alternative water resources (reuse, rain water, etc.) more competitive, generate revenues for water services/infrastructures/policies. Economic instruments include water pricing, abstraction and pollution charges (when prices reflect scarcity), the reform of water-harmful subsidies, etc.

NPDs on WSS in EECCA OECD has worked on WSS in EECCA since 2002 (Armenia, Georgia, Moldova, Ukraine, Kyrgyzstan) Dialogues aim at Injecting financial realism in water strategies and investment plans Revising water pricing policies Designing institutions which favour sound water policies Overcoming fragmentation of water systems Busines models for rural sanitation Adapting water services and infrastructures to climate change

Selected achievements National water strategies based on IWRM under development in Tajikistan and Azerbaijan National legislation analyzed and accession to Water Convention achieved in Turkmenistan A reform of tariff policies in Armenia An Action and Investment plan for water supply and sanitation in Moldova

Plans for the future NPDs in Kazakhstan and Russia start in 2012 Stronger synergies with EU projects in the region and other initiatives Greater visibility for NPDs and sharing lessons learned Funding: European Commission (3.2 mln for 2012-early 2016), Finland, Norway, Switzerland, Germany, Denmark, OSCE/ENVSEC