Eurasian Integration Yearbook 2012

Advanced Economic Cooperationin Sectors and Industriesmillion). It is also planned to construct the Pskem HPP and the Mullalak HPPon the Pskem River with a capacity of 404 MW and 240 MW respectively. InSurchondarya Province, the construction of the Nilo-2 HPP (30 MW and $33.3million) on the Sangardakdarya River and the Zar-Chob HPP (90 MW) on theTupalangdarya River is planned.Overall, 44 investment projects for a total of $5.27 billion are planned to beimplemented in the power sector of Uzbekistan in 2011-2015 (RU, 2011b).In addition, Uzbekistan is building new large water reservoirs (Kenkul-Sai,Zhiidali and Rezaksai). In 2008, the Chartak water reservoir was completed inNamangan Province. A loan from China was raised for the construction of theRezaksai reservoir with the estimated cost of $46 million.The energy sectors of Central Asian countries are connected with watermanagement and, ultimately, agriculture and this should be taken intoaccount in ensuring their operation. A strive for independent energy and waterpolicies in Central Asia results in reduced interstate power flows in the regionand poorer coordination of the power systems. The power systems becomeisolated in a gradual fashion, hence their worsened coordination and reducedefficiency of the Central Asian integrated power system, which cannot ensuretheir reliable operation. The countries’ power grids need an urgent overhauland modernisation of active plants, as well as technological reconstruction ofthe existing infrastructure. The diversion of funds solely to projects that areexpected to pay back in the long term does not foster economic growth inthe countries concerned. In addition, the lack of synchronisation in the use ofwater reservoirs between power generation and irrigation does not promoteenergy and water security in the region, interstate cooperation, and integrationprocesses.Experts believe that this scenario will have significant negative consequencesfor all countries in the region. When the operation of hydropower plants is notbalanced by irrigation and environmental needs, carry-over storage reservoirslose their compensatory capacity during periods of draught and low water,hence a threat to food and energy security in the region. The supplies ofelectricity outside the region should be synchronised with the interstate wateruse. Otherwise, electricity exports to external markets, i.e., outside the closedwater basin (region) with limited water resources, may have a negative effecton interstate relationships and energy, water, food and environmental securityin Central Asia.Mark Lvovich, a known Soviet hydrologist, wrote that the efficient control ofwater resources and cooperation in this area are necessary for the resolution ofregional water and energy problems. He said that, “[…] different water levels indifferent years affect the economy in an unfavourable manner. For this reason,one should not underestimate the significance of the long-term control of riverflows, especially in Central Asia whose primary agricultural sector, irrigated226 EDB Eurasian Integration Yearbook 2012