Report No. 43465-TJ Tajikistan Country Environmental Analysis May 15, 2008 Environment Department (ENV) And Poverty Reduction and Economic Management Unit (ECSPE) Europe and Central Asia Region Document of the World Bank Table of Contents 6 IIntroduction....................................................................................................................... 16 EXECUTIVE SUMMARY................................................................................................... Acknowledgements ................................................................................................................ 7 1.1 ....................................... 1.2. Rationale ................................................................................................................... Economic performance and environmental challenges 16 17 1.4. Key Issues................................................................................................................. 1.3. Objectives ................................................................................................................. 18 19 1.5, Methodology and Approach ..................................................................................... 20 22 I11.Cost I1.1.6. o f EnvironmentalDegradation Structure ofthe Rep0rt.............................................................................................. ................................................................................ 23 Environmental Health Losses inTajikistan 29 3.1. Urban Air Pollution .................................................................................................. ................................................................... 29 3.2 Lead ........................................................................................................................... 32 3.3. Water, Sanitation, and Hygiene ................................................................................ 35 3.5. Other Important Aspects O f Environmental Pollution InTajikistan........................ 3.4. Indoor Air Pollution.................................................................................................. 40 IV.Natural Resources Damages inTajikistan..................................................................... 43 48 4.1. Costs to Crop Production .......................................................................................... 48 4.2. Cost o f Rangeland Degradation................................................................................ 53 Source: Abdusaliamov E .et .................................................................................. 4.3. Deforestation............................................................................................................. al., 2000 54 ....................................................................................................... 55 V Climate Change and Hydro Power Potential.................................................................. 60 VI.Policies and Institutions for Environmental Management ............................................ .4.4.Natural Disasters 64 69 natural resource use ......................................................................................................... 6.1. Assessmentheview o f the policies and programs for environmental protection and 6.2 Constitutional provisions and laws regarding environment ...................................... 69 ............................................................................. 72 VI1. Environmental Governance.......................................................................................... 6.3 Environmental Policy Instruments 73 76 7.1. Institutional design: vertical and horizontal coordination ........................................ 7.2 Environmental Governance ...................................................................................... 76 7.3 Licensing and Permitting.......................................................................................... 76 78 79 7.5 Economic incentives for pollution reduction............................................................ 7.4 Compliance and enforcement mechanisms................................................................ 83 ..................................................................... 7.7 Privatization and environmental governance........................................................... 7.6 Fundingfor environmentalprotection 84 7.8 Opportunities for improvement inenvironmental governance .................................. 85 87 89 References............................................................................................................................ VI11. Conclusions and Recommendations ........................................................................... Annex 1. Law on Nature Protection ................................................................................. 95 102 Annex 2. List O f Environment RelatedLegislations and Authorities In-charge o f Issuing Permits, Approvals, Inspection and Law Enforcement. .................................... 104 Annex 4 Institutionaldesigno f environmental management system inTajikistan........- 139 Annex 3 ..Methodology for Health Cost Estimation.......................................................... 117 3 List of tables 1.1 Summary of Development Indicators in Central Asia 2.1 Prioritization o f environmental problems by population inTajikistan 2.2 Annual cost o f environmental damage - low and high estimates (Million TJS) 3.1.1 Estimatedhealthimpact of urban air pollution 3.1.2 Estimatedannual cost o f health impacts (Million TJS) 3.2.1 Gasoline specifications inTajikistan and EU, maximumlimits 3.2.2 Estimatedannual I Q losses and cases of MMR from lead exposure 3.2.3 Annual cost off health impacts o f exposure to lead pollution 3.2.4 Estimatedloss o f life-time earnings due to I Q losses 3.3.1 Estimatedannual health effects from water, sanitation, hygiene 3.3.2 Estimated DALYs from diarrheal mortality and morbidity 3.3.3 Estimated annual cost o f diarrheal illness (Million TJS) 3.3.4 Annual cases o f waterborne infectious diseases 3.3.5 Estimatedannual cost of Hepatitis A and TyphoidParatyphoid 3.3.6 Estimated annual household averting expenditures 3.4.1 Health risks o f indoor air pollution 3.4.2 Estimatedannual health effects of indoor air pollution 3.4.3 Estimatedannual cost of indoor air pollution inTajikistan 3.5.1.1 Tajik Aluminum Plant: EstimatedEmissions (1999-2002) 3.5.2.1 Wastes Generated inMainIndustrial Installations, 1999 4.1.1.1 Land use inTajikistan (2002-2005) 4.1.1.2 Salinity levels o f irrigated lands 4.1.1.3 Crop salinity tolerance andyield effects 4.1.1.4 Assumed cropping patterns on irrigated lands 4.1.1.5 Observed and estimated yields 4.1.1.6 Estimated annual cost o f crop losses from soil salinity 4.1.2.1 Eroded lands inTajikistan (in%) 4.1.2.2 Fertilizers for humus wash off substitution 4.1-2.3Estimatedannual cost o f crop losses 4.2.1 Area, yield and degree of desertification of rangelands inTajikistan 4.2.2 Total livestock numbersand estimated annual feed requirement 4.2.3 Annual cost o f rangelands degradation inTajikistan 4.3.1 Costs o f annual deforestation 4.4.1 Natural disasters and impacts inTajikistan, 2001-2006 4.4.2 Estimated annual cost o f natural disasters 4.4.3 Unitcosts appliedto frequently occurring disasters 5.1 PotentialHydropower resources inTajikistan List of figures 2.1 Annual Cost o f Environmental Damage 2.2 Annual Cost of Environmental Damage as %age of GDP) 2.3 Relative share of Damage Cost by Environmental Category 2.4 Estimated Cost o f Environmental HealthEffects per Person Exposed 2.5 The Burdeno fMortality RelatedTo EnvironmentalCauses 2.6 Cost o f EnvironmentalDegradation (Health and Natural Resources Damages) 2.7 Health Cost o f Environmental Damage 4 3.1.1 Annual Costs o f Urban Air Pollution (Million TJS) 3.2.1 Dynamics o f Estimated Air Pollution from Stationary and Mobile Sources (2000- 2005) 3.3.1 Annual Costs o f Inadequate Water, Sanitation, and Hygiene (Million TJS) 3.4.1 Annual Costs o f Indoor Air Pollution (Million TJS) 4.4.1 NumberofNatural Disasters and Fatalities inTajikistan (2001-2006) 4.4.2 Impacts o fNatural Disasters inTajikistan (2001-2006) 5.1 Expected Changes inAnnual River Flow (%) and the impact o f climate change by 2050-s (HadCM2) 5.2 The Dynamics of Malaria and Temperature inTajikistan Listof boxes 3.3.1 Boiling o f Drinking Water inTajikistan 3.5.1.1 Fluoride pollution inTursunzade region 4.1.2.1 Dams inTajikistan 4.3.1 Dashtijum Biodiversity Conservation Project (DBCP) 4.3.2 Carbon Storage Value 4.4.1 Anthropogenic Reasons of Natural Disasters inTajikistan 5.1 Shrinking Glaciers inTajikistan 5 Acknowledgements This report was prepared by a team ledby Muthukumara Mani (ENV). The core consultant team included Elena Strukova, Nodira Karimova, Malika Babadjanova, Viju Ipe and T.V. Sampath. The study was carried out under the Development Policy Lending (DPL) Program o f Tajikistan which i s task managed by Sudharshan Canagarajah. The study was also ably supported by Mehrnaz Teymourian and Cevdet Denizer. The work was carried out under the general direction o f Sector Managers Carlos FelipeJaramillo (ECSPE) and Laura Tlaiye (ENV). Ronald Hoffer, Wolfhart Pohl (ECSSD); Juan C. Belausteguigoitia, Anjali Acharya (LCSES) served as peer reviewers. The team also benefitedfrom the comments of JessicaMote, Wolfhart Pohl and Christophe Bosch (ECSSD); Svetlana Proskurovska, (ECSPE); and Wendy Schreiber Ayres (AFTFP). We would like to acknowledge and thank the Government o f Tajikistan and inparticular the cooperation o f RustamLatipov (Head ofthe State Control Service on Nature Use and Protection, Ministry of Agriculture and Nature Protection); Ibragim Saidov (Head o f the Environment Policy ImplementationDepartment, State Control Service on Nature Use and Protection, Ministry of Agriculture and Nature Protection); Timur Nazarov (Head o f the Scientific-Production Center "Tabiat", Ministry o f Agriculture and Nature Protection); and Rustam Babadzhanov (Advisor o f the Strategic Research Center under President Supervision, Republic o f Tajikistan). A numberof consultations were also conducted with various departments o fthe Ministry of Agriculture and Nature Protection, State Statistical Agency, Ministry o fHealth, Agency on Hydrometeorology and Anti-hail service, Agency on Forestry and Hunting, Tajik Scientific Research Institute o f Nature Use and Forestry, Ministryo f Water Management, State Land Committee, Barqi Tojik, Scientific-Research Laboratory on Nature Protection, State Department on specially protected areas, "Taj ik National Park", as well as international organizations, such as OSCE, ADB, EBRD, UNDP, and UNICEF. We would like to thank the agencies, civil society organizations and individuals have helpedthe team to gain a better understanding o fthe environment sector and related political and economic issues. Finally, we appreciate the financial assistance from DANIDA Trust Fundfor Country Environment Analysis without whichthis report would not have beenpossible. 6 EXECUTIVE SUMMARY 1. Tajikistan i s a small mountainous land-locked Central Asian coukry with an economy that heavily depends, as a legacy o f the soviet economy, on exports o f cotton, aluminum and hydroelectricity that are three rather environmentally sensitive sectors, as well as on remittances from migrants living abroad'. The macroeconomic performance has been impressive since the end of the recent civil war; the Gross Domestic Product (GDP) has been growing at an average rate o f 8.7 %2 in the last five years. The country has a population o f about 7 million in2007, with about 75% living in rural areas. It has a GDP per capita o f $390, which is the lowest among the 15 former Soviet republics. The population has been growing at about 1.3% during 2002-2006 and the per capita income -- at 5.9%. 2. Environmental degradation and unsustainable use o f natural resources are constraints to sustainable economic growth and poverty reduction. With more than half o f its territory situated above 3,000 meters, the country i s particularly vulnerable to natural disasters. The country's economy further deeply suffered from both the disintegration o f the Former Soviet Union in 1991 and the Civil War that began in 1992. Impoverished by sudden shortages of fuel, income, and food, the population reverted to subsistence practices, which put an extra burden on the natural resources and the environment o f the country. 3. The environmental challenges in the country, according to the recent National Environmental Action Plan (NEAP) are (i)land degradation, including deforestation, degradation o f pasturelands, arable and irrigated lands; (ii)lack o f improved drinking water and water quality deterioration; (iii)waste pollution from agriculture and industry; (iv) deficiencies in sewerage system infrastructure and management; (v) uncollected and untreated solid waste; (vi) environmental hazards and natural disasters caused by floods and drought; (vii) energy supply; and (viii) lack o f environmental education. 4. While acknowledging that the problems o f unsustainable farming practices continue to persist, today's most important environmental challenges in Tajikistan consist o f dealing with natural disasters like floods and draught and as well as reducing the incidence o f waterborne diseases and illnesses caused by urban and indoor air pollution, and minimizing vulnerability o f rural population to natural disasters. These categories o f environmental damages have an economic cost o f 4.8% o f gross domestic product (GDP), and they primarily affect the poor. Future environmental challenges could result from climate change that exacerbates existing environmental problems. Soil degradation due to, irrational pastures management, and deforestation by indiscriminate felling o f trees leading to the destruction o f critical watersheds and wildlife habitats. Efforts to mitigate potential future environmental challenges would consequently need to control these potential detrimental activities and their cumulative impacts. In addition, efforts would be needed to prevent plundering and uncontrolled exploitation o f Tajikistan's land and water resources, and to supporting reforms in key sectors like cotton, energy, and private sector development that may have impacts on environment and natural resources. ' Therehas been an increasinginflow of remittancesrecently. * Average GDP growth rate at constantprices over the period2002-2006 7 5. Tajikistan has responded to its environmental challenges by developing and continuously strengthening the environmental management framework. Although the country scffered from civil war and political instability for about a decade since independence in 1992, policies and programs for environmental protection began to emerge as early as 1997. The government has since developed and implementedvarious programs for environmental protection. The analysis suggests that the key constraints in environmental management in the country are not from the absence o f well defined environmental policies but rather from inadequate legislation and bylawdguidelines to implementspecific polices inparticular, weaknesses ininstitutional design, lack o f vertical and horizontal coordination, lack o f capacity o f institutions, and insufficient funding. A numberof national and local/provincial level agencies and different ministriesare involved inthe environmental management. There exist opportunities for significant improvement in environmental management through better coordination among the different agencies. The analysis also suggests that policies currently followed do not provide economic incentives for pollution reduction and more efficient use o f natural resources. 6. The CEA found that the government has set norms for air and water pollution, residual traces o f chemicals and biologically harmful microbes in food, regulations regarding noise, vibration and magnetic fields, exceeding the threshold levels results in administrative actions and financial sanctions. However, their implementation remains unsatisfactory due mainly to weak institutions and lack o f vertical and horizontal coordination. Although the government has enacted a number o f laws and proposals to improve the state o f the environment, there is very limited state capacity for policy development, regulation, and implementation. CEA Objectives 7. The significance o f natural resources inthe development process continues to remain vastly underestimated in policy deliberations in Tajikistan. In part, this reflects the absence of credible quantitative evidence of the economic effects o fenvironmental and resource degradation and understanding o f the critical linkages between broader policy reforms and their implications for environment and resource base. The objectives o f the Tajikistan Country Environmental Analysis (CEA) are: (a) to deepen the understanding o f the economic costs of the country's major environmental challenges; (b) to assess institutional capacity within the country for sound environmental management; and (c) to help strengthen institutions and governance to enhance environmentaloutcomes. InstitutionalFramework 8. Tajikistan faces a number o f environmental challenges. The environmental degradation, including air and water pollution and their effects on environmental health, problems in waste management, soil erosion and degradation, degradation o f rangelands, and orchards, deforestation and loss o f biodiversity and natural disasters are highly visible inthe country. There is a broadconsensus at the national and sub-national levels that there i s an urgent needto address the environmental problems inthe country. Inorder to address these issues the country requires effective environmental policies, laws and strong institutions to implementthem. 9. The constitution declares that the State must ensure a healthier environment and guarantee an efficient use o f natural resources for the benefit o f the people o f Tajikistan. The environment protection law stipulates several types o f controls and institutions to comply with at the state, ministerial, business and community levels. At the 8 national level there i s an environmental block, the Department o f Nature Use and Protection, chaired by a Deputy Minister under the Ministry o f Agriculture and Nature Protection. The State Control Service o f Natural Resources and Environmental Protection under the Department o f Nature Use and Protection is the national level agency for environmental affairs inthe country. 10. In addition to the SCSNREP, the Sanitary Inspection Service of the Ministry of Health and Inspection Service on Mining Safety, the Ministry of Mines are involved in environmental management. At the ministerial level, enforcement i s done by different ministries and the state agencies; however with no effective coordination across the ministries. In addition to the state level and ministerial level controls there is a business level control that implies that every business has to observe the environmental law. Although the government has set norms for air and water pollution, residual traces o f chemicals and biologically harmful microbes in food, regulations regarding noise, vibration and magnetic fields, exceeding the threshold levels results in administrative actions and financial sanctions: their implementation remains unsatisfactory mainly due to weak institutions to implement them and lack o f vertical and horizontal coordination, across institutions. 11. The analysis found that the binding constraints for improved environmental performance in the country are: (i)weak institutional design (ii)lack o f coordination among institutions; (iii)lack o f economic incentives for pollution reduction and accountability; (iv) capacity limitations; (v) poor environmental governance and (v) insufficient funding for environmental management. The solutions to these problems will not arise from simply scaling up the institutions or increasing funding for environmental management, but to require careful planning and coordination at all levels backed by legal and regulatory mechanisms. 12. Both federal and provincial governments share legislative authority and responsibility for environmental management and efficient use o f natural resources. In order to achieve better outcomes, institutions at all levels should have appropriate roles and responsibilities. At the national level the roles could include: (a) setting national environmental policy and defining specific goals for environmental quality; (b) providing resources, both technical and financial, and oversight for local/provincial environmental authorities; (c) reporting and publishing data on progress in meeting the national environmental objectives. The national environmental agency should have the mandate for enforcement o f national laws and regulations and oversight on local/provincial environmental agencies. 13. While the national level agency sets the national policy, responsibilities o f the provincial environmental authorities could include environmental clearance at the local level, implementation and compliance as well as monitoring o f ambient environmental quality standards. There i s also need for specific guidelines for national oversight o f the provincial environmental authorities depending on the provincial laws and regulations for enforcement, adequacy o f technical expertise, staff and resources. 14. Tajikistan has a set o f economic incentives in the form o f charges and payments for waste products generated and pollutant discharges in to air and water bodies. The analysis however showed that the fees for waste collection are not sufficient to stimulate reduction in wastes, development and adoption o f environment friendly production technologies that reduce waste generation. In the case o f air and water 9 pollution, current system o f payments is not economically efficient as it does not provide enough economic incentives to reduce emissions. Automobile emissions constitute another main source o f air pollution. The government charges an automobile tax that does not promote fuel efficiency and emission reductions. 15. In addition to prices and charges, the government has enforced quantity restrictions on the amount o f wastes and pollutants that can be discharged into air and water. There are also quota restrictions on the quantity o f water, mineral and other resources o f that could be used by individual business entities. However, the enforcement o f these restrictions i s constrained by the available infrastructure for monitoring and enforcement. 16. One o f the most serious weaknesses o f Tajikistan's environmental management framework is the lack o f capacity for environmental planning. A misalignment between environmental priorities, institutional efforts, and resource allocation i s largely due to: (a) the absence o f clearly identifiedpriorities, based on the cost o f environmental degradation; (b) the absence o f an integrated system o f reliable data to provide analytical support to the decision-making process; (c) the lack o f representation o f vulnerable groups; and (d) the absence o f a formal mechanism for the allocation o f financial and human resources, according to clearly defined environmental priories linked to poverty alleviation and social priorities. 17. Accountability and enforcement and monitoring capacity require urgent improvement. Accountability i s diluted by: (a) the absence o f clear responsibilities and capacities among agencies; and (b) the lack o f an effective voice for the poor, stemming from the lack o f awareness and absence o f sound mechanisms for public participation. Monitoring capacity i s constrained by a lack o f reliable time series data on the state o f the environment and natural resources, the nonexistence o f a system o f results-focused indicators o f environmental quality, and insufficient resources to ensure an adequate institutional presence in the field. Finally, enforcement has been suboptimal mostly because enforcement power ultimately rests inthe same ministries that are responsible for sector development, but also because quality standards still need to be defined in many areas. 18. Major reforms are needed to address Tajikistan's institutional weaknesses and respond to the country's most pressing environmental challenges. One o f the first actions that the Government should consider developing i s a robust mechanism for setting priorities, based on the following criteria: (a) the results o f the analysis o f the costs o f environmental degradation; (b) the distributive impact o f the costs o f environmental degradation; (c) the population's perceptions, gauged through the conduct o f surveys that primarily target vulnerable groups; and (d) analysis o f the efficiency and effectiveness o f environmental policies and o f alternative interventions to reduce the cost o f environmental degradation. RevisitingEnvironmentalPriorities 19. A study was conducted as part o f the CEA to identify the environmental problems that are associated with the most significant economic costs. This analysis showed that the costs o f environmental damages are significant in Tajikistan accounting for about 9.5% o f its GDP in 2006. The highest damage i s from land degradation, including soil erosion and salinity, the cost o f which accounts for 3.7 % o f the GDP, followed by natural disasters (1.6% o f GDP) and then costs due to inadequate water 10 supply, sanitation and hygiene (1.5% o f GDP). The cost o f indoor air pollution and associated health risk i s about 1% o f the GDP; rangeland degradation (0.7 % o f GDP) cost o f urban outdoor air pollution (0.5 %), lead poisoning (0.2 %) and deforestation (0.2 %). The above estimates show the urgency in reversing the course of environmental damages inthe country for sustainable economic growth and poverty reduction. 20. The analysis found that the land degradation is the principal environmental problem in the country, the main causes o f which include irrigation-related land degradation, in particular secondary salinity, water-logging and irrigation-related soil erosion, soil erosion in rain-fed farmlands, degradation o f summer and winter pastures in vast mountain areas, and other forms o f land degradation caused by natural disasters and soil contamination. Although the principal cause o f natural resource losses i s degradation of agricultural lands, it i s important to mention that all elements o f natural resource degradation in Tajikistan are interrelated -- causality links often work both ways. Land degradation eventually causes more land slides and mudflows especially in the sensitive mountainous areas. Most affected by degradation are village-near pasture lands as well as bush and tree vegetation. Common causes include ineffective land management and the lack o f energy resources. Land degradation not only affects agricultural productivity, biodiversity and wildlife, but also increases the likelihood o f natural hazards, that in turn cause destruction to limited agricultural assets. The total annual loss, due to land degradation in Tajikistan, is about 270 million TJS. 21. The second major environmental damage is from fragile soil structure inthe mountain area causing natural disasters by way o f mudflows and boulders sliding down the hills. About 85% of Tajikistan's area is threatened with mudflows and 32% o f the area is situated in the high mudflow risk zone. Anthropogenic activity, such as deforestation, irrigation and land use practices, as well as improper grazing systems adoption on the communnal property lands, increase frequency and magnitude o f floods, landslides, avalanches, and storms, and intermitant droughts, the total costs o f which i s modestly estimated to account for about 115 million TJS. 22. InTajikistan only 93% ofurbanpopulation and 61% ofrural population has access to improved source o f drinking water. The costs associated with inadequately protected water supply, sanitation and hygiene include costs o f mortality and morbidity from Diarrhea, Hepatitis A, Typhoid and Paratyphoid and averting expenditures associated with household boiling of drinking water. The cost of health impacts represents an estimated 95 % o f total mean cost, and averting expenditures about 5 %. While rural areas account for 70 % o f total cost, urban areas account for the rest 30 The estimated total cost associated with inadequate water supply, sanitation and hygiene i s at about 110 Million TJS. 23. Indoor air pollution i s mainly due to use o f traditional fuels; acute respiratory illness in children represents 40% o f cost; respiratory child mortality represents 34%; chronic obstructive pulmonary disease mortality in adult females and ARI morbidity inadult females represent 13% of cost each. Rural population bears 93% o f the total cost o f indoor air pollution, reflecting much higher load on poor households with above average number o f children under 5. The estimated total annual cost of indoor air pollution is at 74 million TJS 24. Degradation o f rangelands i s due to desertification and denudation o f vegetation from frequent drought and continuous overgrazing o f lands around the 11 proximity o f the villages. The communal nature soviet style farming system and the tragedy o f the commons lead to improper grazing and degradation o f grazing lands. Annual cost o f rangeland degradation i s estimated at 53 million TJS using two methods: market value and foregone livestock income from fodder losses. 25. The damages due to urban air pollution that constitute about 0.5% o f the GDP are from deterioration in air quality as a result o f particulate matter mainly related to air pollution from transportation. The mean estimated annual cost o f urban air pollution due to P M is about 32 million TJS o f which about 88% of the cost is due to mortality, and the remaining 12% is associated with morbidity. Measured interms of DALYs, mortality represents 63% and morbidity 37%. 26. The estimate o f costs associated with lead exposure is based on the loss o f intelligence quotient and midmental retardation. The estimated annual cost associated with lead exposure i s at 15 Million TJS. As there i s considerable uncertainty about the data on lead levels in blood in urban population and rural population in Tajikistan, the estimates presentedhere are only for the childrenunder 5 inurbanpopulation of the cities with more than 100 thousand inhabitants. 27. The costs o f deforestation include direct and indirect use values and non- use values. The direct use values include costs associated with loss o f fruit trees and wood lots as fuel-wood production, non-timber products, and tourism and recreation uses. The nonuse values include option values and existence values. It may be noted that the forest cover i s only about 3% o f the total geographical area and hence the marginal costs of deforestation tends be higher inthe country. 28. Among other environmental problems the Tajikistan Aluminum Plant (TaAZ) accounts for about 60-70% of all emissions from stationary sources (2 1,899 tons, or 68.75% o f the total in 2001). A 2002 study found TaAZ responsible for notable fluoride water pollution inthe region. 29. Management o f industrial, mining and municipal wastes remains on the priority list o f environmental problems in Tajikistan. Wastes are mainly generated from mining o f mineral resources, chemical and cotton production, uranium tailings, building refuse and municipal wastes. Uncontrolled wastes disposal requires urgent development o f modern methods to assess, document, and monitor solid waste disposals and processing and investing inwastes disposal. 30. The cost o f environmental degradation in Tajikistan is comparable with other countries with similar income level. Studies o f the cost o f environmental degradation conducted in Pakistan, a low income country in Asia, and several other low and lower- middle countries inAsia, Africa and Latin America show that monetary value o f increased morbidity, mortality and natural resources degradation typically lies from 4% to 10% o f GDP, compared to 9.5% o f GDP inTajikistan. 31. Climate change costs were not quantified in the report due to the lack o f consistent scenarios o f negative impacts. On the qualitative level it i s proved that increasing temperature and changing precipitation patterns are among the major reasons for recent extreme weather events in Tajikistan. Changing climate leads to glaciers retreat, water shortages, increased frequency and magnitude o f natural disasters, as well as alters hydropower development and increases pressure on agriculture. Human health and ecosystems will be affected in the long run. Further analysis is needed to estimate annual losses due to climate change given current uncertainty o f the climate models. 12 32. The burdeno f these costs falls most heavily on vulnerable groups. The poor are exposed to higher environmental risks than higher-income groups, and lack the resources to mitigate those risks. Environmental health impacts often have more severe repercussions on the poor than on the non-poor, because the latter tend to have more resources to cope with such events, better access to health services, and better health in general. Environmental impacts and natural disasters can also result in a loss o f income or assets that is more detrimental for the livelihoods o f the poor than for those o f the non- poor. Conclusions and recommendations 33. The analysis revealed that there are opportunities for improving environmental sector and its performance in the country. The cost of environmental degradation reveals the focus areas for such an improvement. For the nearest future, major focus should be on efficient land and water resource management, soil fertility and moisture conservation which are o f critical importance for the productivity o f agriculture, the prevention of human healthrisks, and energy security inTajikistan. Inlonger term, the cost o f environmental degradation will be exacerbated by climate change. Also, the priorities may be shifted overtime. Therefore, the improvement o f monitoring, information systems, and forward looking risk analysis are essential. Due to multimedia and multidisciplinary character o f the underlying problems, there i s a need for robust interagency coordination. Along with strengthening o f SCSNREP other agencies may also play an important role, for example: the State Committee for Emergency, the Water Management Authorities, and the Ministry o f Energy At the same time, mitigation of environmental degradation costs should be closely linked with poverty alleviation strategy o f Tajikistan (PRS). 34. Immediate measures should include improvement o f land and cropping system management techniques with appropriate irrigation infrastructure rehabilitation, where it is viable. This is essential for sustaining and increasing the farm production and, furthermore, reducing microbiological and chemical contamination o f surface and groundwater. Appropriate crop diversification and production practices instead o f continued monocropping practices enhances employment opportunities and i s an important factor o f poverty alleviation in rural areas. Improved irrigation policy in combination with improved land management practice will reduce vulnerability to natural disasters. Taking into account specifics o f Tajikistan, access to potable water and alternative energy sources like small hydropower will create highest value added with respect to mitigation of the current and future environmental degradation cost. Also, small hydro and improved stoves programs are important in reducing indoor air pollution related to solid fuels used for cooking. These and other recommendations related to general improvement o f institutions and management are summarized inthe table below. 13 Table 1: RecommendedActions Objective RecommendedShort-term Actions Institutionalreform 0Develop a priority-settingmechanismbased on: (a) the impacts of environmentaldegradation on the poor and other vulnerable groups, (b) the most urgentneeds as perceivedby the population, and (c) the major costs and risks that environmental degradation infringeson the overall society 0Establisha planningprocess to align environmental expenditure with priorities 0EstablishEnvironmentalHealthServicewithin the SCSNREP to regulate environmentalquality parametersthat affect health including(i) emission o f PM2s, lead, toxic pollutants;(ii) fuel qualityto tackle air quality; and (iii) water quality parameterssuch as bacteriologicalquality, Persistent Organic Pollutants (POPS),Volatile Organic Compounds(VOCs) and heavy metals. It includes improvement of the infrastructure for monitoring emissions and fixing of liabilities on the polluters. Ensuretransparency in receipts and allocationof the environmental funds for improved planningand prospects for funding in the future 0Developa comprehensivedatabase on available natural resourcesand resourceuse to facilitate a more transparent monitoringof actual natural resourcedepletionhe levels SCSNREPto strengthenits capacity to coordinate and foster consensus- buildingamong sectors. Policy reform 0Establisheffective legal systems and norms to monitor and enforce pollutionregulations from manufacturing industries 0Reforms in setting Maximum Permissible Dischargeof hazardous pollutants (mostly into water bodies) based on environmental standards that are realistic,consideringeconomical and technical efficiency issues 0Reform of economic incentivesfor pollution reduction, misapplicationof the irrigationwaters. 0Reformo feconomic incentivesto prevent uncontrolleduse of natural resources resultingindepletionand degradation Reducesoil degradation Conducthpdate new nationalinventories of (1) soil erosion and (2) soil salinity and fertility status, Undertakesoil and moistureconservationactivitieswith special incentive to introducebiologicalmethods of soil conservation techniques with vegetative barriers across the gradient, encourage rationaluse of water Rehabilitate irrigationand drainage infrastructure where it is feasible and cost effective. Revisethe Water Lawsto authorize local communities to organize Water Users's Associations, to authorizethem to collect rational,broad-based fees for 0 & M o f water resourcesand its management services. Improve land tenure registrationsystem, encourage appropriate land management practice, provide informationaccess to villagerson land use pattern with the use o f zooming and mappingwith modern geospatial tools Introduce laws against irrationalland unauthorized felling of trees, at the same time encourage with special incentives for tree plantingprograms Reducevulnerabilityto natural disasters Adopt structural and nonstructural measuresto reducevulnerabilityto natural 14 disasters, includingthe adoptionof adequate construction technologies, practices, and standards in poor urban sectors and amongthe rural population Reduce health risks associated with Promote hand-washingprograms that target childrenunder the age of 5 inadequatewater supply, Promote safewater programsthat include disinfectiono f drinking water at sanitation and hygiene point-of-use Rehabilitate aging water supply and sanitation infrastructure Reduce cost of environmental Promote small hydro and other cleaner fuels in areas that predominantly degradationassociated use solid fuel, and implement actionsto improveavailability and accessto with indoor air pollution solid fuel users in a safe and cost-effective manner Implement a programto promote improved stoves and biogas production from solid wastes Reducehealthrisks associated with ambient Establishnationalambient standards for PM2.5 and PMlO in priority urban air pollution areas and strengthen technology-specific emission standards for PM and its precursors (particularlysulfur and nitrogen oxides) Implement an air quality monitoringprogramto monitor PM2.5, PMlO, and ozone in priority urban areas Implementair pollution control interventions aimed at reducing automobile emissions. The measuresto reduce emissions include eliminating leaded gasoline, improvingthe quality include of the fuel, particularlythe imported fuel, and improvingthe system of maintenance and inspections o f the transportation fleet. Reduce deforestation Improve land management practice through zooming and mapping with geospatialtools use, regular monitoringand updating of land use pattern o f rangelandpastures, introduce practice of compartmental grazingand replantingo f fruit and nut trees ,balancedand regulated winter and summer pasture usage by the village management (Jamaot) committee insteadof rain administration with appropriate fee for technically guided improvementof rangelands. Developmentof legalsystem to protect biologicaland landscapediversity and development of better database on biodiversityinthe country. Reduceunauthorized disposal of industrialand Development o f an effectivesystem of waste management (collection, municipalwastes disposaland recycling) and effectiveenvironmental monitoring, particularly near waste management sites and landfills 35. Inthe longer term it is important to develop coordinated soil and moisture conservation systems in vast pasture lands o f mountain areas and efficient water management systems in irrigated valley lands, and hydro power generation plans, enhancing cross country coordination and electricity trade, as well as to incorporate risk assessment policies across the various ministries and functional areas, from development planning to watershed management and hydro power projects. At the same time there i s a need for follow-up work to do a more detailed analysis on which policies and investments would provide the largest benefits. 15 IIntroduction 1.1 Economic performanceand environmentalchallenges Tajikistan i s a small mountainous land locked Central Asian country with an economy that heavily depends on exports o f cotton, aluminum and hydroelectricity-three rather environmentally sensitive sectors and remittances from migrants living abroad3. The macroeconomic performance has beenimpressive since the end o f the recent civil war; the Gross Domestic Product (GDP) has been growing at an average rate o f 8.7 %4 in the last five years. The country has a population o f about 7 million in 2007, of which about 75% live inrural areas and are dependent on agriculture. It has a per capita GDP o f $390 which i s lowest among the 15 former Soviet republics. The population has beengrowing at about 1.3% during 2002-2006 and the percapita income at 5.9 %. Table 1.1 below presents the summary o f the development indicators in Central Asian countries. Uzbekista 2,200 7 6% 27 a I 66 8 68 25% 82% 0 702 n Kazakhsta 11,100 10% 15 3 0 5 65 9 99 5 73 4% 86% 0 794 n Kyrgyz 2,000 3 4% 5 3 1 65 6 98 7 67 6% 77% 0 696 Republic Social indicators are relatively strong in Tajikistan, even admitting existing data gaps and inconsistencies, although the recent civil conflict might have affected the pace o f progress. In2005, the life expectancy at birthwas at an average of 66 years. Literacy rates in2000 were as high as 100 % for males and 99 % for females. The net primary and secondary school enrollment ratios in 2005 were 97 and 80 % respectively. Both infant and child mortality rates declined over the period 1995 through 2005. The infant mortality rate and child mortality rate in 2005 were 59 per 1000 live births and 71 per 1000 respectively. In 2005, about 59 % o f the population had access to improved potable water source, which shows a marginal decline from 61 % in 1995. Access to improved sanitation also fell marginally from 52 % in 1995 to 51 % in 2004. Although the prevalence of HIV i s less than 0.1 %, recently there has been an increase in the incidence o f tuberculosis in the country, increasing from 65 per 100,000 people in 1995 to 198 per 100,000 people in 2005.5 There has been an increasinginflow of remittancesrecently. Average GDP growth rate at constant prices over the period2002-2006 World Development Indicators. 16 The country's program of structural and institutional reform centers on the following three pillars (a) reform o f the public sector management, (b) development o f private sector and attracting investments,and (c) development o f human potential. Environmental degradation and unsustainable use o f natural resources including land and water are clearly constraints to sustainable economic growth and poverty reduction. With more than half o f its territory situated above 3,000 meters, the country is particularly vulnerable to natural disasters. The country's economy deeply suffered from both the disintegration o f the Former Soviet Union in 1991 with the break down o f the centrally commanded intricate system o f supply and services and the bitter Civil War that erupted in 1992. Impoverished by sudden shortages of fuel, income, and food, the population dependent on the soviet production system that abruptly came to a grinding halt lost their source o f income, were forced to revert to subsistence practices, which put an extra burden on the natural resources and the environment o f the country. The environmental challenges in the country, according to the recent National Environmental Action Plan (NEAP) are (i)land degradation, including deforestation, degradation o f vast area o f winter and summer pasturelands and fruit and nuts tree plantations in mountain areas, arable and irrigated lands; (ii)lack o f improved drinking water and water quality deterioration; (iii)waste pollution from agriculture and industry; (iv) deficiencies in sewerage system infrastructure and management; (v) uncollected and untreated solid waste; (vi) environmental hazards and natural disasters like droughts and floods; (vii) shortages inenergy supply; and (viii) lack o f environmental education. The completion and approval of the NEAP in 2006 has brought much attention to the environmental challenges faced by the country and resulted in a public debate. The recent National Development Strategy 2015 and the Second Poverty Reduction Strategy Paper also recognize the importance o f addressing environmental issues for growth and poverty reduction. The momentum thus created by these developments provides a window o f opportunity to review and improve environmental management and policies based on an analysis o f the performance o f environmental institutions (since the creation o f the Ministry)and the key environmentalchallenges that Tajikistan is facing. Such analysis will help the environmental authorities develop policies and interventions that take advantage of potential win-win opportunities, assess tradeoffs, and find the economic and social balance between protecting and restoring a deteriorating environment and avoiding unrealistic regulations that might hinder competitiveness and investment. 1.2. Rationale The World Bank is supporting policy and institutional reforms in a number o f areas through the Tajikistan Programmatic Development Policy Credit (PDPC) (Development Policy Lending) operation. These are aligned with the first two pillars o f Tajikistan's PRSP: to improve the environment for private sector development, and to improve overall functioning o f the public sector and the delivery o f key public services. To promote private sector development, the PDPC program will support measures to reduce the cost o f doing business, promote transparency o f the privatization process, and assist with regulatory and institutional reforms in key strategic sectors (aviation, cotton, and energy). To improve the overall functioning of the public sector and improvements in the delivery o f public services, the PDPC program will support public sector reforms aimed at 17 improving public sector management, and the efficiency and effectiveness of public spending. The program will also support reforms ineducation and health sector policies to improve access, quality, and equity of services. Under the new Operations Policy (OP/BP 8.60) on Development Policy Lending (DPL) it i s now requiredthat the Bank determine whether specific country policies supported by the operation are likely to have significant effects on the country's environment and natural resources. For policies with likely significant effects, there should be an assessment of the relevant analytic knowledge o f these effects and of the borrower's systems for reducing adverse effects and enhancing positive effects associated with the specific policies being supported. While Environmental Assessments (EAs) undertaken as a part of the Bank's safeguards process are very project specific, the environmental review of a DPL i s expected to be much broader, and aimed at building country capacity to mitigate broader environmental effects resulting from policy reforms. There is much emphasis in the new policy on undertaking upstream analytic work, such as Country Environmental Analyses (CEAs) and Strategic Environmental Assessments (SEAS),especially in countries where Bank is a major driver of the development agenda through DPLs. Inthe case of Tajikistan, the Bank is supporting reforms inkey sectors like cotton, energy, and private sector development that may have impacts on environment and natural resources. The Bank is also supporting Tajikistan in implementing a community agriculture development program on watershed basis where Integrated models that enhance agricultural productivity and address land degradation adapted to conditions prevalent in high Mountain Regions of Tajikistan. The CPIA scores also indicate that the environmental institutions are weak in the country. The Country Environmental Analysis is designed to assess the environmental challenges inthe country, economy environment interactions and status of environmental institutions and identify a phased approach to fill the gaps and build capacity of these institutions. 1.3. Objectives The significance of natural resources in the development process continues to remain vastly underestimated inpolicy deliberations inTajikistan. Inpart this reflects the absence of credible quantitative evidence on the economic effects of environmental and resource degradationand understandingof the critical linkages between broader policy reforms and their implications for environment and resource base. The objectives of the Tajikistan Country Environmental Analysis (CEA) are: > To deepen the understanding of the economic costs of country's major environmental challenges; > To assess institutional capacity within the country for sound environmental management; and > To help strengthen institutions and governance to enhance environmental outcomes. The CEA will improve the analytic basis of indicators with respect to environmental issues and thus enhance the short term and long term strategic goals of the PRSP. Inaddition to 18 the Government of Tajikistan, the findings of the analysis are also expected to guide support o f the Bank and other development partners to strengthencapacity in Tajikistan for sound environmental management. 1.4. Key Issues The CEA presents an in-depth analysis of critical environmental challenges and institutional and implementation issues and propose specific recommendations with a short- to medium-termfocus. The focus o f the environmental challenges i s on the natural resources and factors o f production that underpin economic growth and include: environmental health, the degradation o f arable land, the rangelands, and natural disasters. More specifically, the key areas o f focus are: Human Capital Losses Associated with Environmental Degradation Using existing data sources and conventional measurement techniques the CEA assesses the burden of disease due to environmental factors and computes the economic loss associated with environmentally related mortality and morbidity. The analysis includes (but not restricted to) losses resulting from: water-borne disease; poor sanitation; indoor air pollution; outdoor air pollution and lead poisoning. Soil Degradation Agriculture remains Tajikistan's principle occupation and accounts for approximately 24 % of GDP in 2006. Only 6% o f the land area is arable; cotton is the most important crop. There is abundant evidence o f stagnating yields and widespread degradation o f the soils on which the agricultural sector depends, due to improper land use practices and adoption o f monocropping, system. Salinity and water logging, both partly a consequence o f profligate irrigation methods, and faulty drainage and heavy machnary usage, remain major threats to the agricultural sector's productive potential. The CEA quantifies the economic loss attributable to soil degradation (including salinity and water logging), as well as consequences of sedimentation leading to silting up o f reservoirs reducing their capacities and silting up o f canal and drainage systems and/or nutrient loss de to excewss water flow and leaching.. RangelandDegradation Natural pastures in Tajikistan occupy more than 3.5 million hectares. The rangelands are an important economic resource that can be efficiently.harnessed for expanding and sustaining livestock population, large pastoral communities and the country's increasingly vulnerable biodiversity. Estimates suggest that much o f the poor capcacity and quality rangeland i s threatened by poor stocking and improper management and restoration o f the natural vegetation. InTajikistan, about 85% o f the pastureland has beenovergrazed around the immediate vicinity o fthe villages leaving farthest pastur lands unutilized/underutilized, so the potential profitability o f livestock operations is declining, and desertification is increasing. The problem i s particularly widespread in valleys and near villages o f the Khatlon and inthe Sughdregions. (NEAP 2006). The CEA quantifies the economic losses o f unsustainable use o f the rangelands. 19 Forest Resources Wooded forests occupy a relatively small proportion o f the land area inTajikistan (some 3 %), but nevertheless play a vital role in the country's economy. Forests remain an important source of fuel wood, grazing land, livelihood and government revenue. Forests also provide multiple ecological-services such as water shed protection, soil protection, biodiversity habitat and play a vital role in assuring eco-system resilience (Le. stability). The reduction of wooded forest area and low tree density exacerbated the soil erosion and mudflow causing natural disasters in 1992-1999. Since the 1970s, the area o f Tajikistan's forestlands did not vary significantly, although the average wood stock has been reducing and now it i s around 70% comparing to the former period. (Tajikistan 2002. State o f the Environment Report). The CEA assesses the economic losses due to deforestation using the available data. Natural Disasters Poorer green cover and vegetation and fragile soil structure o f the mountain area lead to incidence o f dozens o f landslides, hundreds o f mudflows and avalanches in Tajikistan annually. The processes o f deep soil erosion, gully formation, land slides, and deep depressions characterize many areas. About 80% o f the reported natural disasters occur within the Gissar-Alai mountain system. Also, some 85% of Tajikistan's area is threatened with mudflows and rock boulders rolling down the fragile mountain area. About 32% o f the valley area is situated in the high mudflow and boulder move risk zone.6 The CEA focuses on 2-3 types of disasters directly related to anthropogenic activity (indiscriminate felling o f forest trees and defective land use pattern o f agricultural practices) causing the largest costs to society by way o f flooding and land slides. There i s therefore a very high potential for reductions indisaster impacts. Climate Change7 Temperature rise leads to glaciers melting that i s potentially disastrous to water supply in Central Asia. It alters development o f major sectors o f the Tajikistan economy including agriculture, water and electricity supply through deterioration in the river flows and consequent hydropower potential reducing the irrigation potential inthe most affected river basins. Valuable tugai ecosystem could degrade because o f shortage o f water resources, reduction in vegetative cover leading to food shortages, increase in temperature, and enhaced fire risks. Land degradation could exacerbate due to longer dry periods and higher temperature in spring and summer. Adaptation policy suggests harmonized approach to soil and water conservation int eh uppercatchment, efficient and rational water use including potable water supply, effective irrigation and hydropower development. 1.5. Methodologyand Approach The analytical framework for the study uses both primary and secondary data sources, and i s based on three types o f analyses: 6 Tajikistan2002. State of the Environment Report. 'Climatechange cost were not quantifiedin the report due to the data gaps and high uncertaintyo f climate change scenariosin he mountainousareas. 20 Cost of Environmental Degradation: A systematic exercise using state-of-the-art methodology is undertaken to assess the roots and economic costs o f environmental degradation. This will help the government and other stakeholders to rank environmental concerns inTajikistan, and identify the sectoral sources from which these concerns stem. Policy, Legislative and RegulatoryAnalysis: The CEA provides an analysis o f the laws, policies and regulations applicable to the environment and sustainable development. This includes stocktaking o f existing laws, policies and regulations as well as an assessment o f their effectiveness and relevance to Tajikistan's current challenges and environmental priorities. A gap analysis i s undertaken to determine legal, policy and regulatory areas that need strengthening and provide suggestions as to the mechanisms for policy formulation, policy goal setting and trade-offs, and cost-effective measures for achieving desired outcomes. Assessmentof Institutional Capacity, Incentivesand Constraints:Historically, the institutional framework for environmental management inTajikistan has been inconsistent, the policy framework has lacked an integrated approach, and implementation is also weak. These problems have beencompounded by an extended period o fpolitical instability, misplaced prioritizationunder the constrained budgetswhere environmental issues received minimal attention from the government. The result has been an often changing and highly centralized institutional and policy frameworks that suffer from institutional overlaps, lack o f adequate resources and lack o f sectoral coordination. The CEA assesses the environmental management capacity of public agencies at national and sub-national levels. This i s based on review of existing capacity in terms o f plans, processes and personnel for environmental management in key institutions. The review specifically examines mechanisms and incentive structures for integrating environmental priorities in economic and sector-wide programs such as presence of well-resourced environmental units in key ministries, application o f economic instruments, and capacity for environmental decision making and inclusively articulated participatory resource management in municipalities and district assemblies. The CEA identifies gaps in institutional capacity and recommends measures for restructuring and strengthening based on stakeholder discussions and available best practice. This will be the basis for the institutional reforms inthe PDPC (DPL). Environmental Licenses and Permits: More specifically, the CEA also examines the issue o f environmental licenses and permits in the context o f broader reforms inthe area o f licenses and permits supported under the PDPC. The aim o f reducing the time to set up a business can place undue pressures for environmental clearances, which in some cases need time. The staffing in the environmental agencies is also assessed to meet with the demands for a more timely delivery o f initial clearances and for the follow up monitoring. Privatization: Privatizationof certain environmentally sensitive industries (such as cement and aluminum) could have serious environmental implications if there i s no adequate framework to deal with legacies o f past pollution. This inmany transition countries has in fact ledto prolonged litigation with adverse impacts on the privatization process itself. The CEA examines the current framework to deal with legacies o f past pollution or how to build this into the privatization efforts. Experiences from other countries are drawn up to recommend the legal framework so that mistakes of other countries are not repeated. 21 1.6. Structureof the Report This report is arranged in seven sections. The first section develops the country context, the key environmental challenges, the rationale, objective and methodology followed. Section I1 provides the overall estimates o f social and economic costs o f environmental damage in Tajikistan. Section I11 presents annual costs associated health losses linked to environmental degradation, including inadequate water supply, sanitation and hygiene, indoor/outdoor air pollution and exposure to lead. Estimates o f annual losses due to degradation o f natural resources are presented in Section IV. They include land degradation due to irrigation, secondary salinity, water logging and irrigation-related soil erosion, soil erosion in rain fed farmlands, degradation o f pasture lands, deforestation and related loss o f biodiversity, and losses due to natural disasters in the country. Costs o f climate change and hydropower development problems are reflected in the same section. An assessment of the existing institutions and the regulatory framework and the issues in enforcement o f the policies and regulations i s presentedin Section V. The Section VI has an account o f the organization structure and environmental governance inthe country. The final section has the conclusions and policy recommendations. 22 11. Cost of Environmental Degradation Environmental pollution, degradation o f natural resources, natural disasters, and inadequate environmental services, such as improved water supply and sanitation, impose costs to society in the form o f ill health, lost income, and increased poverty and vulnerability. This section provides overall estimates o f social and economic costs o f environmental damage inTajikistan. The estimated total cost of environmental damage inthe country is about 690 Million TJS per year (Table 2.1 and Figure 2.1), accounting for about 9.5 % of the GDP in 2006. The costs were estimated for eight different damage categories. Among the eight categories o f damages, costs of damages from land degradation, including soil erosion, loss o f fertility and salinity was the highest, 39.3 % o f the total cost o f damages (3.7 % o f the GDP); followed by cost o f natural disasters (115 Million TJS) and then damages due to inadequate water supply, sanitation and hygiene (112 Million TJS). The cost o f damages due to indoor air pollution was 74 MillionTJS; rangeland degradation 53 MillionTJS; cost of urban outdoor air pollution 33 Million TJS and lead poisoning 17 Million TJS. The smallest cost category i s for deforestation at 15 Million TJS. This however does not account for loss o f wild berries, fruits, and nuts having high food value, medicinal plants, inthe mountainous forest areadue to lack o fofficial data. The analysis shows that environmental degradation causes significant damages to the economy accounting for as high as 9.5 % o f the GDP o f which land degradation alone accounts for 3.8 % (Figure 2.2) followed by cost o f natural disasters at 1.6 % o f the GDP. The other cost categories are damages from inadequate water supply, sanitation and hygiene (1.5% o f the GDP); indoor air pollution (1%); urban air pollution including outdoor air pollution cost from particulate matter and cost o f lead poisoning (0.7%). Land degradation alone shares for 39 % o f the total cost o f environmental degradation in the country followed by natural disasters (Figure 2.2). Lack o f adequate supply o f improved water, sanitation and hygiene and indoor and urban air pollution together accounted about 35 % o f the total damages. Inadditionto the mean estimates, "low" and "high" estimates ofannual costs are presented inTable 2.1. The range for water supply, sanitation and hygiene is in large part associated with uncertainties regarding estimates of diarrheal child mortality and morbidity. In the case o f urban air pollution and natural disasters two different valuation techniques for estimating the social cost o f mortality have been applied which yielded the "low" and "high" estimates. The range for indoor air pollution i s mainly from the uncertainty about the exposure level to indoor smoke from the use of fuel wood, and thus a range has been applied for the level o f health risk. The range for agricultural soil degradation i s associated with uncertainty of yield losses from salinity. The range for deforestation is associated with the uncertainty of the use and non-use benefits o f forest and the range for lead exposure is mainly related to the uncertainty o f loss o f lifetime income due to the loss o f cognitive ability. 23 Figure2.1: Annual Cost of EnvironmentalDamage(Million TJS per year) 250 v) 200 ;2 -.-150 100 50 0 Figure2.2: Annual Cost of EnvironmentalDamage(YOof GDP) Deforestation Lead exposure Outdoor air Ran eland degradation Indoor air Water supply, sanitation and hygiene Natural disasters Soil eroslon, salinity 0.0% 0.6% 1.0% 1.6% 2.0% 2.6% 3.0% 3.6% 4.0% Share of GDP 24 Figure 2.3: Relative share of Damage Cost by Environmental Category A survey on the awareness of the public on environmental problems in Tajikistan showed that the general public considers land degradation, natural disasters and problems due to inadequate supply o f improved, sanitation and hygiene as the major environmental problems in the country (Table 2.1), receiving highest rankings. These results are consistent with the study estimates of costs o f environmental damages presentedin Table 2.2. Table 2.1:Prioritization of Environmental Problems by Population in Tajikistan I Urrrencv coefficient" 1Inadeauate use and pollution o f water I 0.83 I Desertificationand soil degradation 0.77 Natural disasters 0.63 Biodiversity preservation 0.62 Mountain ecosvstems degradation 0.62 Inadequate waste management 0.61 Inadequate ecotourism 0.56 Air pollution 0.53 Climate change 0.5 1 The costs of damages associated with environmental health are distributed unevenlyacross the population. Figure 2.4 presents estimated costs per capita due to exposure of general population to environmental health risks. Losses due to outdoor air pollution and lead poisoning losses were estimated for the inhabitants o f the cities with population over 100 thousand; costs o f inadequate water supply, sanitation and hygiene costs were estimated for the whole population of Tajikistan; and indoor air pollution costs were estimated for the households that use solid fuel for cooking (about 40 % of households). Outdoor urban air pollution has the highest cost on a per person basis followed by damages due to indoor air pollution. Among the estimated cost items, inadequate water supply and sanitation has the lowest cost on a percapita basis. However, when comparing these estimates it should be noted that the entire population o f Tajikistan is included in the estimation o f damages 25 due to inadequate water supply, sanitation and hygiene. Inthe case of indoor air pollution the estimate is based on about 40 % of all Tajikistan (households are considered to bear indoor air pollution losses) but only 46 % o f urban population was analyzed for the outdoor air pollution exposure. The analysis shows that while almost all of the rural population is potentially experiencing losses from inadequate water supply, sanitation and hygiene, as well as from indoor air pollution, data on the proportion of urban population affected i s less reliable. Similarly data on ambient air quality are available for only 46 % o f the urban population and the analysis did not cover the remaining 54 % o f the urban population although they suffer both from outdoor air pollution and inadequate water supply, sanitation and hygiene. The poorer sections o f the population who live inbig cities and use solid fuel for cooking, seem to be more affected by the environmental damages; those. A more detailed analysis would be neededto estimate the distributional impacts of such damages. Figure2.4: EstimatedCost of EnvironmentalHealthEffectsper Person Exposed (TJS perYear) 40 35 1E 1: Jk 2o 15 I O 5 0 Water supply, Indoor air Outdoor air Lead exposure sanitation and hygiene Figure 2.5 presents the burden of mortality related to environmental causes as %age of total mortality among adults and children under-5 years in Tajikistan. About 2 % o f adult mortality i s attributed to outdoor and indoor air pollution, and about 17 % o f under-5 child mortality i s attributed to inadequate water supply, sanitation and hygiene and indoor air pollution. 26 Figure2.5: The Burdenof Mortality RelatedTo EnvironmentalCauses 1.800 1,400 1,200 1,000 j 800 600 400 200 0 Outdoor alr Indoor alr Wimr supply, santfatlon and hyghn. l'Lowll Mean Estimate "High" Environmental Categories 202 270 340 Soil degradation* (39.1) (39.1) (35.0) 33 115 200 Natural Disasters IW) l(16.7) l(20.6) 1104 1112 I120 of valuable orchards, fruits and nut trees like wild pistachio, almonds, hazelnuts, walnuts, etc, due to lack ol oublished data. The cost of environmental degradation in Tajikistan is comparable with other countries with similar income level. Studies of the cost of environmental degradation conducted in Pakistan, a low income country in Asia, and several low and lower-middle countries in Asia, Africa and Latin America show that monetary value of increased morbidity, mortality and natural resources degradationtypically lies from 4 to 10 per cent of GDP, comparedto 9.5 % of GDP inTajikistan. 27 Figure 2.6: Cost of Environmental Degradation (Health and Natural Resources Damages) 12% T 1400 10% 1200 p a. 8% 1000 0 (3 6% 800 % m 0 X s 600 4% 400 2% 200 5E 0% 0 3 Iran Bolivia Pakistan Ghana Tajikistan CED +GDP per capita I Source: Bolivia: Environment and Poverty Policy Note, World Bank, 2006; Islamic Republic Of Iran: Cost Assessment Of Environmental Degradation, World Bank, 2005; Ghana Country Environmental Analysis, World Bank, 2006; Pakistan:Country Strategic Environmental Assessment, World Bank, Volume 11,2007. The situation looks even more consistent across different countries if one compares health cost o f environmental degradation. In all the selected countries they vary among 3-4 % of GDP. InTajikistan health cost o f environmental damage is at 3.25 % of GDP. It includes costs of inadequate water, sanitation and hygiene, cost o f indoor and outdoor air pollution, and health cost o f lead exposure. Figure 2.7: Health Cost of Environmental Damage 1400 1200 Q 10005p m 800 5 3 600 $ E 400 200 g o = Ghana Tajikistan Source: Source: Bolivia: Environment and Poverty Policy Note, World Bank, 2006; Islamic Republic Of Iran: Cost Assessment Of Environmental Degradation,World Bank, 2005; Ghana Country Environmental Analysis, World Bank, 2006; Pakistan: Country Strategic Environmental Assessment, World Bank, Volume 11,2007. 28 111.EnvironmentalHealth Losses in Tajikistan 3.1. Urban Air Pollution UNECE 2004 indicates that approximately 119,000 tons o f harmful substances were emitted into the atmosphere in 2003. Industriesand energy utilities together accounted for about 34,000 tons o f emissions, o f which Tajik aluminum plant alone accounted for about 22,000 tons. More recent estimates show that automobile emission is becoming a major source of air pollution in the cities. This i s because o f the growing number o f registered vehicles, the poor quality o f fuel and a large existing fleet of old motor vehicles (65% o f the fleet is 8 to 30 years old) (UNECE, 2004)). In 2005, pollution from automobiles contributed as much as 83% o f total atmospheric emissions or 170 thousand tons. This is more than twice o f the emissions estimated in2000. Other sources of outdoor air pollution are dust storms and burning o f waste products. There is substantial research evidence from around the world that outdoor urban air pollution has significant negative impacts on public health and results in premature deaths, chronic bronchitis, and respiratory disorders. A comprehensive review o f such studies i s provided in Ostro (2004) and Cohen (2004). The air pollutant that has shown the strongest association with these health endpoints i s particulate matter (PM)*, and especially particulates o f less than 10 microns indiameter (PM 10) or smaller. The estimated cost of health effects from urban air pollution in this analysis is based on Particulate Matter (PM) and lead exposure. This section first discusses cost o f exposure to P M pollution. Lead exposure i s discussed inthe latter half o f the section. ParticulateMatter The mean estimated annual cost of urban air pollution due to P M is about 32 million TJS o f which about 88 % o f the cost i s due to mortality, and the rest 12 % i s associated with morbidity (Figure 3.1). Measured in terms o f DALYs, mortality represents 63 % and morbidity 37 %. Also called as suspended particulates. 29 Figure3.1.1: Annual Costs of Urban Air Pollution(Million TJS) I 30. I Cardiopulmonary and lung cancer morlallty Respiratory morbidity The focus o f this study is on the health effects o f fine particulates (PM10 and PM2.5). Three main steps were followed to quantify the health impacts from air pollution. First, the pollutants are identified and its ambient concentration measured. Second, the number o f people exposed to the pollutant and its concentration is calculated. The third step then i s to estimate the health impacts using data collected and based on epidemiological assessments. Once the health impacts are quantified, the value o f this damage as a% o f GDP can be estimated. The present analysis covers only Dushanbe and Khujand, the two cities with population over 100 thousand. Although urban population in the other smaller cities are also exposed to ambient air pollution, due to the lack o f monitoring data and estimated concentrations they were not included in the analysis. Total urban population exposed to air pollution i s about 0.8 million or 46 % o f total Tajikistan population in2006. Dushanbe is the capital of Tajikistan with a population o f about 0.65 million. It is located inthe central part o fTajikistan onthe southern slope of Gissar mountainridge inthe valley at the height o f about 800 metersabove sea level. State o f the Environment in Dushanbe Report, 2001 (CEROI, 2001) reports that in the 1980s concentration o f TSP in the atmosphere was about 1.5-3 times the Maximum Allowable Concentration (MAC), with emissions at about 0.15 mg/m3 per annum. The average observed TSP concentration in 2001 was 2.2 times the M A C or about 0.3 mg/m3, which indicates that the TSP concentration fell since the 1980s. (Also, it is estimated that on average TSP concentration has more than halved since then (CEROI, 2001)). Then applying default coefficient 0.5 for the PMlO fraction in TSP (Larson et al, 1999) annual average PMlO concentration i s about 80 ug/m3. Using the econometric model developed by the World Bank for the world cities with population above 100 thousand, we have estimated the annual average PMlO concentration in Dushanbe at 59 ug/m3.' Similarly using the World Bank model the estimated annual PMlO annual average concentration in Khujandi s 84 ug/m3. Usingthe information from Annex 3 about applicable concentration-response coefficients that link annual average P M pollution with additional cardiopulmonary mortality and various morbidity end-points (see Annex 3), the annual health effects o f ambient 30 particulate air pollution in Tajikistan are presented in Table 3.1.1. Urban air particulate pollution i s estimated to cause around 420 premature deaths annually. Estimated new cases o f chronic bronchitis are about 230 per year. Annual hospitalizations due to pollution are estimated at close to 630, and emergency room visits/outpatient hospitalizations at 12.5 thousand per year. Cases o f less severe health impacts are also presented in Table 3.1.1 In terms of annual DALYs lost, mortality accounts for an estimated 63 %, chronic bronchitis around 10 % o f the total, Restricted Activity Days (RADS)for 12%, and respiratory symptoms for 9 %. Total Total Health end-points Cases D A L Ys Prematuremortality 420 3,153 Chronic bronchitis 233 512 Hospitaladmissions 632 10 Emergencyroom visits/Outpatient hospital visits 12,389 56 Restrictedactivity days 1,967,046 590 Lower respiratory illness in children 31,131 202 Respiratory symptoms 6,260,339 470 TOTAL 4,993 Estimated Cost of Health Impacts The estimated annual cost o f health damages due to urban air pollution is presented in Table 3.1.2. Cost o f mortality i s based on the Human Capital Approach (HCA) and the Value o f Statistical Life (VSL), ranges from 3 to 55 million TJS. The methodology i s discussed in annex 4. The measure o f the welfare cost o f morbidity is often based on the willingness-to-pay (WTP) to avoid or reduce the risk o f illness. It i s often found to be several times higher than the cost o f medical treatment and the value o f time losses (Cropper and Oates 1992), and reflect the value that individuals place on avoiding pain and discomfort. There are however not a sufficient number o f WTP studies from Central Asia. So the Cost-Of- Illness (COI) approach (mainly medical cost and value o f time losses) has been applied to estimate morbidity (see Annex 3 for explanation). Table 3.1.2: EstimatedAnnual Cost of Health Impacts (Million TJS) Health categories I Total Annual Cost* I YOof Total Cost* (Mean) Mortality 3-55 88% I I I Morbidity: I Chronic bronchitis 0.3 1Yo Hospitaladmissions 0.3 1% Emergencyroomvisitdoutpatient hospitalvisits 0.5 1Yo Restrictedactivity days (adults) 2.1 7% Lower respiratory illness in children 0.8 2% Respiratory symptoms (adults) 0.0 0% Total cost of Morbidity 4 100% TOTAL COST (Mortality and Morbidity) 7-59 100% 3.2 Lead The problem o f lead pollution is quite serious in Tajikistan. The main reason is that transportation sector contributes about 70 % o f air pollution (Dimitrov, 2004) and gasoline i s still leaded. Another source o f lead pollution i s unregulated wastes incineration. Emission from automobiles (transportation fleet) is the major contributor o f air pollution in Tajikistan. There has been substantial decline in industrial production in the country since 1990s, which led to a change in the sources o f air pollution in favor of the automobiles. Figure 3.2.1 presents composition o f air pollution from stationary and mobile sources in 2000 and 2005. It may be noted that in 2005 emissions from stationary sources (industry, power plants, etc.) remain at the same lower level as in 2000, while emissions from the transportation sector grew significantly in2000-2005 period. Figure 3.2.1: Dynamics of Estimated Air Pollution from Stationary and Mobile Sources (2000-2005) rn Mobile Stationary Source:EnvironmentalAgency, Tajikistan2007; UNECE, 2004 The Environmental Agency. reported that annual increment o f the automobile fleet in - - recent years has gone up at a rate o f around 20 % annually. Inparticular, in 2005 the total number of vehicles was 164,000, which increased to 209,204 in2006 and then to 234,189 in the beginning of 2007 (Environmental Agency, Tajikistan 2007). The average age of the automobile fleet is 10-15 years, most vehicles purchased in 1996-2000. The prevalence o f low incomes leads to continuous ageing o f the automobile fleet, and which inturn leads to increases in the volume o f emissions. Most o f automobile service stations do not have standard diagnostic equipments and trained staff to improve fuel efficiency and reduce emissions. Although there is a system o f automobile inspections it is not efficient. Use o f leaded gasoline i s still wide spread (Table 3.2.1). 32 Table 3.2.1: Gasolinespecifications in Tajikistan and EU,maximumlimits All Sulphur 0.1 wt% 0.05 W t K 0.085 wt% kif Be mene 5 vol?/o 1 voIK AIf kromatiss 42 ~01% Soitrce : State Commrftee for EnvironmentalProtection and Forestry. 2003 Xore' wt% i s weight per cent and vol0~ois volume per ceut Estimated annual lead emission i s 1 kg o f lead per vehicle. A vehicle using 1000 liters o f ' fuel on the average emits 200 kg o f carbon monoxide, 1 kg o f soot and solid pollutants and 200-400 grams o f lead and the average consumption o f fuel i s 10-12 liter per 1OOkm. Lead content in imported gasoline i s not measured. Local experts hint that up to 60 % o f gasoline i s imported illegally and without certification. The estimated annual cost associated with lead exposure ranges from 14 to20 Million TJS per year, with a mean o f 15 MillionTJS. This estimate is based on lead exposure from all sources (leaded gasoline, industry and possible other sources such as water, soil, paint and food) for the children under 5 living in cities with more than 100 thousand inhabitants, totaling nearly 0.8 million people or about 50 % o f the urban population in Tajiki~tan.~ Because o f data limitations, only the most significant components o f total loss, burden o f IQ (89%)andthecostofmildmentalretardation(MMR)(11%)couldbeestimated. loss There is no information available on the current Blood Lead Levels (BLL) for the urban population in Tajikistan. The estimated cost o f lead exposure i s therefore based on Blood Lead BLL measurements in children in Central Asian countries and in Russia with similar gasoline characteristics. The methodology used to estimate environmental burden from lead exposure is described in(Fewtrell et al, 2003). Since there were several studies available (see Annex 3), a single weighted mean level o f lead in blood (BLL) was generated at 6.6 ug/dl in children and 4.0 ug/dl in adults. These average levels are close to the lowest threshold (Le., 5 ug/dl) for health effects reported in the Annex 3. Nevertheless, part o f the population may have a BLL well above this threshold. This is reflected inthe standard deviation reported by the studies. The adjusted BLL and the range instandard deviation are applied inthe model to estimate population BLL. The result suggests that an estimated 60-62 % o f the children and 35-37 % o f the adults have BLL > 5 ug/dl and an estimated 1 % o f the children and no adults have BLL > 20 ug/dl. 9This corresponds to the population for which the cost o f PM pollution was estimated. 33 Loss o f intelligence (IQ loss) has been identified as the most important impact o f BLL on health (See Annex 3 for literature on health impacts of BLL). Following the assumption o f a normal distributiono f I Q inthe population, the number o f children with MMR from lead exposure i s estimated by multiplying the estimated number of children with elevated BLL by the children share with IQ of 70-73.5 points. The estimated annual loss o f intelligence from lead exposure i s presented in Table 3.2.2, totaling about 21 thousand IQ points and 120cases o fMMR. Table 3.2.2: EstimatedAnnual IQ and Cases of MMR from Lead Exposure Losses The estimated population at risk o f MMR is summedfor different I Q bands (Annex 3) and thenmultipliedby the regional MMRadjustment ratio, which is 1.53 for Euro B, the WHO sub-region where Tajikistan i s part. Other negative outcomes o f lead exposure (increased blood pressure, gastrointestinal effects and anemia) were not quantified due to combination o f two factors: significant1Y lower burden o f these outcomes1o,and high uncertainty o f lead blood data for TajikistanI . Ifnew data on lead level inbloodbecomes available, thenmissingcharacteristics could be estimated. The estimated annual cost o f lead exposure is presentedinTable 3.2.3. Lead Pollution total cost 89% Mild mental retardation 11% Total cost 17 MMR is linked with the loss of 36.1 % (0.361 coefficient equal to disability weight for DALYs loss estimation) o fDALYs and lifetimeincome. Although there is some indication that MMR i s associated with lower life expectancy, additional evidence i s needed to quantify this association (Pruss-Ustun et al., 2004). MMR-related lifetime income loss was estimated as 2 million TJS. I Q losses were also linked to the loss o f lifetime income. Cost o f I Q losses are estimated based on expected lifetime income losses, assuming a 1.3-1.9 % decline in income for every one point loss in I Q based on studies in the United States (Schwartz 1994 and loAbout 5 percent of total cost from lead exposure in Pakistan (Krupnick et al, 2006). IINo recent studies with the reported lead blood level in adults were identified for the countries of former Soviet Union. 34 Salkever 1995).l2 A mean estimate o f corresponding income loss i s 15 million TJS (Table 3.2.4). Low estimation High estimation IQ lossof0.65points (1) 1.6 2.3 IQ lossof1.95points (2)-- 3.1 4.5 IQ lossof3.25points (3) 2.7 4.0 IQ lossof3.5points (4) -- 5.1 7.6 Total cost 12.5 18.4 The DALYs lost due to MMR were estimated using DALYs tables o f the WHO (www.who.int/evidence/nbd).Thus, the DALYs lost due to MMR is estimated at 1200. We have presented above, a very conservative estimation of the cost o f health impacts o f exposure to lead pollution. It may be noted that this estimate does not include MMR health expenses (Le. doctor visits, medication cost and time losses o f care givers) and reduced life expectancy due to MMR. Further, it doesn't include cost of other health effects related to lead exposure such as elevated blood pressure, gastroenterological effects, and anemia. It should also be noted that the estimated costs are only for the children under 5 inthe cities with urbanpopulationmore than 100thousand inhabitants, and that the estimates are based on BLL measurements from Uzbekistan, Kazakhstan and Russia. In the absence o f data, there is a considerable uncertainty about BLL in the urban population as a whole and the rural population in Tajikistan. Hence it i s necessary to undertake new studies o f BLL in children and adults to provide a more accurate estimate o f health effects and their costs. Analysis o f urban air pollution costs suggests that the focus should be on regulating PM, and particularly on PM2.5, which i s most associated with health effects. Also, action should be taken to examine the outstanding sources o f lead pollution, including lead in gasoline and lead in water and food to develop a plan for the phase out o f all such emissions where justified. The government should devote enough resources to ensure that I&Mprogram is effective. The record in the past has not been good and this is an area where cost effective reductions in emissions can be made. Other options to be considered i s further introduction o f abatement technologies at major polluting industries (Tajik Aluminum plant) and promoting establishment o f warning systems and emergency plans for locations most vulnerable to catastrophic life-threatening pollution. 3.3. Water, Sanitation, and Hygiene As UNECE, 2004 indicates, originally the quality of ground water, which is the major source o f drinking water in Tajikistan, was very high. Over the years industrial pollution, municipal discharges and agricultural pollution related to heavy pesticides use and lack o f drainage on irrigated lands resulted in the substantial loss of water quality. However, ''This reflects a lower and upper bounds of estimated income losses. An annual discount rate of 3 percent and a real increase in annual incomeof 2 percent is applied. A 0.5 percentagepoint income loss attributed to a reducedlikelihoodo f labor force participationfrom a decline in IQnot included because o f inadequate i s comparabledata on factors influencinglabor force participationinTajikistan vs the United States. 35 according to the to the latest Multiple Indicator Cluster Survey for Tajikistan, MICS 2005, only 93 % o f urban population and 61 % of rural population has access to improved source o f drinking water (piped water, public tap, borehole/ tubewell, protected well, protected spring or rainwater). In GBAO and Khatlon Oblast only 52-55 % of population has this access. As for sanitation, 97 % o f urban population and 92 % o f rural population have access to improved sanitation (connected to public service or has a septic tank). Inadequate quantity and quality o f potable water supply, sanitation facilities and practices, and hygiene conditions are associated with various illnesses both in adults and children. The major health effects o f inadequate water quality and quantity, sanitation facilities and practices, and hygiene are diarrheal morbidity and mortality.l3 While diarrheal illness is generally not as serious as some other waterborne illnesses, it i s more common and affects a larger number o f people. WHO estimates that 90 YOo f diarrheal illness i s attributable to these factors (WHO 2002). Diarrhealmortality and morbidity Basis for diarrheal mortality estimation is total child mortality. Tajikistan has in general relatively highchild mortality, although the estimates are quite uncertain. According to the latest Multiple Indicator Cluster Survey for Tajikistan, MICS 2005, mortality among children under 5 i s 79 per 1000 live births (http://www.who.int/whosis/en/index.html). Similar estimate o f child mortality in 2000 was 126 deaths for 1000 live births (MICS, 2000). The main reason for uncertainty and year-to-year variation in the estimates i s that only 88 % o f birthsare registered(MICS, 2005). Table 3.3.1 presents the estimated health effects from inadequate water, sanitation and hygiene. Details o f the procedure are in the Annex 3. The estimates are based on the background health data, taking into account the WHO estimate that 90 % o f diarrheal illness is attributable to water, sanitation and hygiene. % o f diarrheal cases among children under 5 is estimated from MICS, 2000, and inthe age group older than 5 is estimated from % o f cases among children (MICS 2000) and the ratio of cases among children under-5to the population above 5 years of age. The same method was applied to estimation of the treated cases when only % o f treated cases among children under 5 was available from MICS 2000. The latter ratio i s from the international sources discussed in the Baseline Health Data section. Although the share o f rural population in Tajikistan i s about 74 %, estimated number o f cases o f diarrheal child mortality i s about 10 % higher because the share o f children inthe population i s substantially higher in rural areas. The larger share o f children in the rural population, low public awareness of the health benefits o f drinking boiled water and poor access to energy are also determinants o f higher diarrheal illness in children inrural areas. The estimated number o f cases o f diarrheal illness in children under-5 is about 3.5 times higher inrural areas. 13 Hygienerefers to personalhygiene(such as handwashing), domestic hygiene and food hygiene. 36 Table 3.3.1: EstimatedAnnual HealthEffectsfrom Water, Sanitation, Hygiene I ICases Urban Rural I I I1 - I Children(under the age of 5 years) - increasedmortality 280 1320 Children(under the age of 5 years) - increasedmorbidity 812,000 2,860,000 Population over 5 years of age - increasedmorbidity 1,230,000 3,990,000 DALYs lost from diarrheal illness (mortality and morbidity) is presented in Table 3.3.2 (see Annex 3 for the details of the analysis). About 85 % of the DALYs are from diarrheal child mortality. Annual cost of diarrheal mortality and morbidity from inadequate water, sanitation and hygiene is estimated at 30 million TJS in urban areas and 72 million TJS in rural areas (Table 3.3.3). The cost of diarrhealchild mortality is based on the humancapitalapproach (HCA) discussed in the Annex 3. The cost of morbidity includes the cost of illness (medical treatment, medicines, and value of lost time). About 30-35 % of these costs are associated with the value of time lost to illness (including care giving), and 65-70 % are from cost of treatment and medicines. Hepatitis A, Typhoid and Paratyphoid Number of recorded cases of hepatitis A and typhoid/paratyphoidin Tajikistan over the period 2000 to 2005 are presentedinTable 3.3.4. There were about 3122 cases of typhoid and 7834 hepatitis cases per year during the above period. The total estimated annual cost associatedwith hepatitisand typhoid is 4.2 million TJS (Table 3.3.5). 2000 2001 2002 2003 2004 2005 Typhoid/paratyphoid 4415 3388 3294 3148 2481 2010 HepatitisA 9562 9201 7393 5414 10221 5215 Cost o f hospitalization and medication accounted for about 96 % o f the total estimated cost. EstimatedTotal Annual Cost (Million TJS) Cost of Hospitalization 2 Cost of Medication 2 Cost of time losses 0.2 Total Annual Cost 4.2 Averting Expenditures In the presence of perceived health risks, people often take averting measures to avoid these risks. Ifpeople perceive there i s a risk o f illness from the municipal water supply, or from other sources o f water supply they use, some o f them are likely to purchase bottled water for drinking purposes, or boil their water. These averting expenditures associated with the purchase of bottled water and boiling the water account for the costs of health risks. However, MICS 2005 reports that only less than 1% of population inTajikistan use bottled water. Hence the averting expenditures associated with the purchase o f bottled water have not been included in computation o f costs o f health risks. According to local surveys, nearly 30 % o f households in Tajikistan boil their drinking water, either all the time or sometimes (Box 3.3.1). The estimated annual cost of boiling water for those households i s 3-7 Million TJS per year. Box 3.3.1: Boilingof Drinking Water in Tajikistan Recent health survey of several districts of Dushanbe city done by one of the local primary health clinics has shown that up to 30 % of city inhabitants boil their drinking water. The above %age is expected to grow with increase in household income and level of education. Experts of sanitary-epidemiological units agree that this number is not more than 30% inother cities and towns of the country. The share of population that boils drinking water in rural area is also around 30 %. The 2006 household survey in four jamoats of Kulob region (Ziraki, Zarbdor, Daganaand Kulob) show that only 25-30 % of rural population boil drinking water. It increases to about 40-50 % among the quintile of the population that is richest and the most educated. Traditionally, local people often boil water for tea depending on the seasons; . overall demand for hot drinks is lower in summer.However, very often people mix tea and raw water during the day and this could affect the results o f the survey and lead to overestimation of the share o f population that boils drinking water. Source: Nodira Karimova per consultations with experts Table 3.3.6 presentsthe data usedto estimate the annual cost o f boiling drinking water. It i s assumed that the average daily consumption o f drinking water per person i s 0.5-1-0liters among households that use boiled water. Residential cost o f energy i s estimated based on data from experts, using the average stove efficiency i s for natural gas and wood fuel. The total estimated averting expenditures ranges from 3 to 7 million TJS (Table 3.3.7) per year. This is about 5 % o f the total estimated annual cost associated with inadequate water supply, sanitation and hygiene. 38 Data: Total Annual Cost (Million TJS) "Low" "Hi hl7 Cost of bottled water consumption 0 0 Cost of householdboiling drinking water 3 7 Total annual cost 3 7 The estimated total cost associated with inadequate water supply, sanitation and hygiene ranges from 104to120MillionTJS per year, with a mean of about 110MillionTJS (Figure 3.3.1). The damages include health impacts, mortality and morbidity and averting expenditureswhich includemostly householdboiling o f drinking water. The cost o f health impactsrepresents an estimated95 % of total mean cost, and avertingexpendituresabout 5 %. Cost of each of these categories is presentedinFigure 3.3.1. While rural areas account for 70 % o f total cost, urbanareas account for the rest 30 %. Figure 3.3.1: Annual Costs of InadequateWater, Sanitation,and Hygiene(Million TJS) 50 40 30 20 10 0 Diarrheal Diarrheal Water boiling Hep A, Mortality Morbidity Typhoid, Paratyphoid 1W Urban cost W Rural cost 1 Studies indifferent low incomecountries with similar water supply, sanitation and hygiene problems suggest that measures to reduce environmentaldamages arejustified ina number 39 o f areas on benefit cost grounds as well on grounds o f benefiting the poor. For water supply and sanitation, improvements in facilities in rural areas yield benefits in excess of costs under most assumptions. In urban areas the focus should be on drinking water monitoring and rehabilitationo f pipedwater supply and sewage systems. The programs are justified on the grounds that the benefits are concentrated primarily among the poor. Hygiene programs have estimated benefits far in excess o f costs and should receive the highest priority. The same applies for programs to encourage disinfection o f drinking water. 3.4. Indoor Air Pollution WHO (2002b) estimates that 1.6 millionpeople die each year globally due to indoor smoke from the household use o f traditional fuels. The most common o f such fuels are wood, agricultural residues, animal dung, charcoal, and in some countries coal. The strongest l i n k s between indoor smoke and health are for lower respiratory infections, Chronic Obstructive Pulmonary Disease (COPD), and for cancer o f the respiratory system. O f all the respiratory diseases associated with indoor smoke, lower respiratory infections account for about 37.5 %, 22 % are COPD, and cancer o f the respiratory system account for about 1.5 % globally (WHO 2002b). Indoor air pollution i s associated with use o f traditional fuels (mainly cotton stalks in Tajikistan). About 50% o f rural population and 7% o f urban population use solid fuel for cooking inTajikistan (MICS, 2005). Desai et a1 (2004) provides a review o f research studies from around the world that have assessed the magnitude o f health effects from indoor air pollution from solid fuels. The odds ratios for acute respiratory illness (ARI) and chronic obstructive pulmonary disease (COPD) are presented in the Table 3.4.1. The ratios represent the risk o f illness for those who are exposed to indoor air pollution compared to the risk for those who are not exposed. The range of "low" to "high" ratios reflects the review by Desai et a1(2004), and have in this section been applied to young children under the age o f five years (for ARI) and adult females (for ARI and COPD) to estimate the increase inmortality and morbidity associated with indoor air p ~ l l u t i o n . 'It ~ i s these population groups who suffer the most from indoor air pollution because they spend much more o f their time at home, and/or more time cooking than older children and adult males. Odds Ratios(OR) "Low" "High" Acute Respiratory Illness (ARI) 1.9 2.7 Chronic obstructive pulmonary disease (COPD) 2.3 4.8 l4Desai et al (2004) present odd ratios for lung cancer, but this effect of pollution is not estimated in this Section. This is because the incidence of lungcancer among ruralwomen is generally very low. 40 Table 3.4.1presentsthe estimatedhealtheffects from indoor air pollutionthat include ARI mortality and morbidity among children under 5, COPD mortality and morbidity among women over 30, and ARI morbidityamong womenover 30. Details of the procedure are in the Annex 3. The estimates are based on the backgroundhealth data on ARI and COPD prevalence available from MICS, 2005 and international sources (Annex 3), taking into account odds ratios presented in Table 3.4.1. % of ARI cases among children under 5 is estimated from MICS, 2005, and in the age group older than 5 is estimated from % of cases among children (MICS 2005) and the ratio of cases among children under-5 to the populationabove 5 years of age. The same methodwas appliedto estimationof the treated cases when only % of treated cases among children under 5 was available from MICS 2005. The latter ratio is from the international sources discussed in the Baseline Health Data Table (Annex 3). About 13 % of the cost of morbidity related to indoor air pollution is associated with COPD, and 87 % with ARI." Mortality due to COPD and ARI accounts for about 47 % of the total cost, and morbidity about 53 %. In order to estimate the cost of COPD mortality for adults, the Value of Statistical Life (VSL) is used as the upper bound and HCA as the lower bound (Annex 3). Inthe case of children, HCA is usedto estimatethe cost of mortality. The cost of morbidity includesthe cost of illness (medical treatment and value of time lost due to illness). The estimated healthimpactsof indoor pollutioninrural and urbanareas are presentedinTable 3.4.2. Table 3.4.2: EstimatedAnnual HealthEffectsof Indoor Air Pollution "Low" "High" Acute Respiratory Illness (AM): Children(under the age of 5 years) - increasedmortality 25 45 Children(underthe age of 5 years) - increasedmorbidity 57,000 91,000 Females(30 years and older) - increasedmorbidity 16,000 29,000 Chronic obstructivepulmonary disease (COPD): Adult females- increasedmortality 10 20 Adult females- increasedmorbidity 10 20 Total Disability Adjusted LifeYears (DALYs)-mortality and morbidity 1,100 2,100 An estimated 34.8 thousand DALYs are lost each year due to indoor air pollution (mean estimate) of which about 75 % is due to mortality. IsBased on the meanestimated annual cost. 41 The estimated total annual cost o f indoor air pollution ranges from 50 to 98 million TJS with a mean cost at 74 million TJS (Tables 3.4.3). The total costs accounted for about 1 % o f GDP in 2006. As presentedin Figure 3.4.1, acute respiratory illness (ARI) in children represents 40 % of cost; respiratory child mortality represents 34 %; chronic obstructive pulmonary disease (COPD) mortality in adult females and ARI morbidity in adult females represent 13 % o f cost each. Rural population bears 93 % o f the total cost of indoor air pollution. So ruralpoor are predominantly affected with indoor air pollution andbear major costs. Table 3.4.3: EstimatedAnnual Cost of IndoorAir Pollutionin Taiikistan "Low" "High" Acute RespiratoryIllness (AM): IIChildren(under the age of 5 years) - increasedmortality I 2 0 130 Children(under the age of 5 years) - increasedmorbidity I 2 1 I 4 0 II IIAdult females- increasedmorbidity 1 8 Chronic obstructiveuulmonarv disease (COPD): I II l l II ~ Adult females - increasedmortality ~~ ~ ~~~ 1 17 Adult females - increasedmorbidity 0.2 0.3 I TOTAL I 50 I 9 8 Figure3.4.1: Annual Costs of Indoor Air Pollution (Million TJS) I I W Urban I Respiratory Respiratory Respiratory COPD adult COPD adult child child adult mortality morbidity morbidity mortality morbidity 42 Deteriorating situation with domestic energy use requires urgent measures for negative health impact mitigation. The interventions could include promotion o f cleaner fuels use in areas that predominantly use solid fuel for cooking, and implement actions to improve availability and access to solid fuel users in a safe and cost-effective manner. Development o f small hydro power stations also could be mentionedas a solution for meetingpopulation needs in the short term. Consistent use o f improved stoves proved to be an effective approach given governmental support and promotion o f the program. 3.5. Other Important Aspects Of EnvironmentalPollutionInTajikistan 3.5.1 Tajikistan Aluminum plant The Tajik Aluminumplant (TaAZ) is the largest aluminum manufacturing plant in Central Asia. It i s located in Tursunzade (Khatlonskaya Oblast), in the south-western part o f Tajikistan. Its capacity i s about half billion tones o f aluminum per year and it consumes 40% o f the country's electrical powert6. As these sources report, in 2001, TaAZ was operating at 25% capacity (producing 113,000 tons), down from 86.5% capacity in 1990 (producing 450,000 tons, the closest it has come to full capacity utilization). The $210 million earned in export revenues constituted 53% o f total export receipts for the year. In 2002, TaAZ's output increased to 307,000 tons, and plans are for it to reach 346,000 tons annual output by 2005. Almost all o f its output i s exported. The plant directly employs 12,000 to 14,000, and indirectly supports a community o f 100,000. Thus TaAZ operation i s linked to overstressed hydropower consumption in Tajikistan and adds to the already tensedrelations with neighboring countries. As UNECE, 2004 indicates the city o f Tursunzade where aluminum plant is located, is particularly affected by air pollution from stationary sources, which account for 75.7% o f total air pollution. The TaAZ accounts for about 60-70% o f all emissions from stationary sources (21,899 tons, or 68.75% o f the total in 2001 (UNECE, 2004, p.83). A 2002 study found it responsible for notable fluoride water pollution in the region. It also has been blamed repeatedly by the neighboring regions o f Uzbekistan for their serious ecological problems. This plant creates a dangerous ecological situation in Tursunzade and nearby territories, especially with its discharge o f fluoride compounds, but also other toxic pollutants (Table 3.5.1.1). Table 3.5.1.1: Tajik Aluminum Plant: Estimated Emissions, 1999-2002 I 1999 I 2000 I 2001 2002 I Total II I 24,543.50 22,250.70I 21,899.00 II21,613.10 Dust 2,452.00 2,379.90 I I 2,416.80 2,027.30 Total gaseous 22,091.50III19,870.80 19,482.20 1I II19,585.90 Sulfur dioxide I 700.2 700.5 700.8 692.6 ICarbon monoxide I 21.048.60II 18.823.00I118.441.50 18.539.40 1 Nitrogenoxides 201.3 205.5 197 212.6 Hydrocarbons 21.2 22 22.3 22 Hydrogen fluoride 120.2 119.8 120.7 119.4 l6htt~://src-h.slav.hokudai.a~.i~/sYm~o/97summer/islamov.html#46; httD://www,nationsencvcloDedia.com/Asia-and-Oceania/Taiikistan-INDUSTRY.html 43 The box below presents results of one o f the recent studies on hydrogen fluoride pollution inTursunzade region. Box 3.5.1.1. Fluoride pollution in Tursunzade Region Studies of this region'swater suppliesdiscovered that the content o f fluoridesexceeds PDK in surface waters and underground waters (PDK = 1.5 milligram/liter). The content of fluoride in the surface waters of Jamoat Karatag and Telman State Farm made up is 1.72k0.3 milligrams per liter and 2.00k03 milligrams per liter, respectively. Analysis of samples of water from three different sources of water supplies situated in the territoriesofthe Aluminum plant has shownthe following concentrations of toxic substances: ... Fluoride:3.6k0.8and 7.1h1.4and 11.0+1.8 mg/l, Sulfates: 72,816,7 and 57,8*5,1 and 88,1k4,6 mg/l, HCO: 103*14 and 240k20, 140+12 mg/l. Inhabitants of southern regions consume between three and four liters o f water daily during the summer months. If a teenager (13-17 years old) drinks 3 liters of water containing3.5 mg o f fluoride, then in twenty four hours he gets 1 mg of fluoride. An adult consuming four to five liters of water daily gets 1.4 -1-75 mg of fluoride. As was mentioned above, the population of Republic gets 1.5 mg of fluoride daily through foodstuffs, the biological effects of which equal 1.2 mg fluoride of drinking water. Consequently, the daily consumptionof fluoride for teenagers makes up 2.2 mg, and for adults 2.6-3.0 mg, or 0.049 mg/kg o f weight of body (accordingly). Although they intake a maximum quantity o f content of fluoride in foodstuffs, neverthelessthe daily intake of fluoride by each inhabitant of Jamoat Karatag in Tursunzaderegionmakes up approximately 2.8 mg. Among schoolchildren of 6-10 years of the region is observed that 55 o f 150 have dental caries (37%).Among schoolchildren of 15-17years, 53 of 105 observedhave dental caries (54%). The content of ion fluoride in samples taken from plants in our zones of research made up 6.5 to 12 milligrams/kilogram in Jamoat Karatagand. At Telman State Farm , it was from 7.8 to 16.3 mg/kg. The content of fluoride in samples of soil also was more on the territory o f Jamoat (region) Karatagand made up 13 mg/kg. The local populationis not aware about harmfuleffect of aluminum manufacturing on the environment and on fluoride toxicity. The aim of the project was to improve health in the unflavored area of Tursunzade region, where live 3,000 inhabitants (many of them are children less than 16 years old). Source: FinalReport Englishlanguage translation receivedby the Virtual Foundation(e-mailfrom ISAR- - CentralAsia office in Kazakhstan)January 17, 2002; http://www.virtualfoundation.orgifinreps/ebtwaterO 1.html NGOs and concerned population, but also Government o f Uzbekistan attributes a lot of negative health outcomes to environmental pollution from TaAZ. Air pollution would be responsible for cardiopulmonary mortality and morbidity, as described in the urban air pollution section. To capture these effects monitoring stations should be in operation in Tursunzade and surrounding areas. Fluoride pollution o f drinking water i s also very stressful for human health. The long list o f possible health outcomes would include lung and bladder cancer, bone deformity, hypothyroidism, fluorosis, tooth decay, osteosclerosis (hardening o f the bones), sinus trouble, perforation o f the nasal septum, chest pains, coughs, thyroid disorders, anemia, dizziness, weakness, nausea, diarrhea, respiratory disorders (sometimes termed "pot-line asthma'), hemorrhagic pulmonary edema (fluid accumulation and swelling in the lungs), hypocalcaemia (a low blood calcium level), hypomagnesaemia (deficiency o f magnesium in the blood) , cardiac arrhythmias, renal failure, ventricular fibrillation, serious damage to vegetation, respiratory, eye, skin 44 problems in animals. In some studies it has been found that there is a possibility that fluoride can cross the placenta from the mother's blood to the developing fetus. Also, there i s a possible increase in birth defects or lower IQ in children living in areas scores withvery highlevels offluoride inthe drinkingwater17. It is obvious that further research, including comprehensive epidemiologic studies are needed to estimate direct impact from TaAZ on public health and ecosystems. TaAZ has been proceeding with its equipment modernization to minimize negative impact, it has succeeded in modernizing abatement pollution equipment for two production lines and plans to modernizethe remainingproductionlines. FutureTaAZ development plans should incorporate environmental concerns and minimize adverse impact on public health and ecosystems. 3.5.2 Problems of Wastes Management As Tajikistan 2002 State of the Environment Report estimates, over 22-25 million tonnes of solid waste, 20 million cub.m of liquid industrial waste and 200 million tonnes of mining waste are accumulatedin the republic. Total area of lands under waste dumps and waste storage sites is 1,100hectares, of which miningwastes occupy 800 hectares of lands and contribute 77% ofthe total waste accumulation. Managementof industrial, mining and municipal wastes remains on the priority list of environmental problems in Tajikistan. Wastes are mainly generated from mining of mineral resources, chemical and cotton production,uraniumtailings, buildingrefuse and municipalwastes. Industrialwaste The industrial wastes in Tajikistan are generated by the building sector and chemical, mining and metal and cotton industries. Major industrial waste generating industrial enterprises are presentedinTable 3.5.2.1. Table 3.5.2.1: Waste Generated I n Main IndustrialInstallations, 1999 Source : UNDP.RegionalEnvironmentalAction Plan for CentralAsia. September 21, 2001. "http:/lwww.alcant.co.za/health hazardshtml 45 There are about 400 sites that generate industrial wastes in the country. Of the total industrial wastes generated mining sites that process 40 different types o f minerals generate about 77 % o f all the industrial wastes. More than 200 million tons o f mineral refuse i s accumulated in around 70 mines, o f which more than 23 million tons is hazardous. Annually, 50 enterprises generate 1,000 tons o f galvanic toxic waste. The list o f hazardous wastes generated in the country includes cobalt, arsenic, nickel, cadmium, mercury, aluminum, lead and antimony. The hazardous wastes are usually dumped with the rest of municipal refuse. These wastes are usually stored inthe territories ofenterprises and then dumped in landfills that occupy over 300 ha. There are neither centralized sanitary facilities for storage o f hazardous wastes nor special facilities for treatment or secondary use o f hazardous wastes. During the Soviet times Tajikistan used to be the main producer of uranium. Official sources report about nine official sites for storage o f radioactive wastes that occupy 300 ha with around 164 million tons o f radioactive mining ores and 180 ha (65 million tons) o f radioactive tailings, mainly located in Sughd region and Faizabad district. These storage facilities require urgent rehabilitation and impose substantial health risks to local populations that live as close as 6 km away from the sites. Municipalwaste management. Annually up to 4-5 million cub. m o f municipal wastes are generated nationwide, o f which 1.2 million cub.m i s from in Dushanbe city. Most o f the waste is dumped at 70 legal landfills that cover approximately 300 ha. The rest i s dumped at illegal landfills. Such illegal landfills carry about 120 cub. m o f waste (no precise estimation i s available). Half o f municipal waste is formed by kitchen refuse; the rest contains other components like paper, plastics and resin, ceramics, glass, tree leaves and ash and about 7 % is medical waste. There i s no waste sorting or treating facilities in the country. Existing communal waste sites (both small transit in-city and permanent out-of-city dumps) are poorly equipped resulting in toxic spills into water streams particularly after rain. There are no mechanisms to control smell from the landfills, especially duringhot the weather. Illegal burningo f leaves and other wastes, mainly to reduce the volume o f waste i s another issue in the management o f wastes. The smell o f burning leaves and wastes can be felt daily in all parts o f Dushanbe city. At least 60 large and numerous small waste burning cases are registeredevery year. Since tree leaves absorb harmful elements, suchas lead and other heavy metals, including up to 40 toxic harmful substances, burningleaves along with plastic and other toxic elements pose a direct hazard to human health and further degrade urban outdoor and indoor air quality. Local population and often workers o f municipal services are not aware o f the health hazards o f burning wastes and practice burning on a continuous basis. The relationship between solid wastes and human health and ecosystems damages is difficult to quantify. The most straightforward way i s to estimate the share o f particulates and chemical pollution from waste burning. Also, health risk analysis methods could be useful to pinpoint the pressure from leaking of cadmium, cobalt, nickel, chromium, arsenic, and other elements from industrial wastes. However, modern monitoring procedures should be applied. At present Tajikistan does not nave a capacity to facilitate such an analysis. 46 Uncontrolled wastes disposal requires urgent development o f modern methods to assess, document, and monitor solid waste disposals and processing and investing ininfrastructure necessary to protect the environment and the public from the most dangerous areas o f uncollected solid waste and from accumulation in the most dangerous un-managed or poorly-managed dumps. Environmental health problems could be more effectively addressed by an independent entity with clearly defined responsibilities for environmental health management. A decentralized entity should be created within the Ministry o f Health to regulate emission o f PM2.5, lead, toxic pollutants, and fuel quality to tackle air quality, and enforcing bacteriological quality, persistent organic pollutants (POPS), volatile organic compounds (VOCs), and heavy metals, among others, to deal with water contaminants that affect human health. 47 IV. Natural Resources Damages inTajikistan As World Bank, 2007 indicates, "Difficult livelihood conditions and land management practices create high dependence and pressure on local natural resources, especially in the mountain areas eventually resulting in degradation o f such lands". According to UNCCD, 2006 the, major categories o f land degradation in Tajikistan are similar to those in other Central Asian countries. They include (1) soil erosion in rain fed farmlands, (2) pasture and range land degradation, (3) degradation o f forests and bushes and related loss o f biodiversity, (4) irrigation-related land degradation, in particular secondary salinity, water logging and irrigation-related soil erosion, and (5) other forms o f land degradation as a result o f natural disasters, soil contamination, etc. Land degradation eventually causes more land slides and mudflows especially in the sensitive mountainous areas. Most affected by degradation i s village-near pasture land as well as bush and tree vegetation. Common causes are ineffective land management and lack o f alternate energy resources. Land degradation not only affects agricultural productivity, biodiversity and wildlife, but also increases the likelihood for natural hazards(Wor1d Bank, 2007). Although the principal cause o f natural resource losses is degradation o f agricultural lands, it is important to mention that all elements o f natural resource degradation inTajikistan are interrelated and causality links often work both directions. In other words, part o f natural resources losses could be attributed to irrational felling o f trees, irrational use o f pasture and range lands leading to loss o f green cover, deforestation and agricultural land degradation and vice versa. It i s very difficult to quantify these relations due to the lack o f data. However, the analysis allowed estimating direct losses o f natural resources. Losses due to degradation are estimated for croplands, rangelands, forests and natural disasters. Losses to croplands include damages from soil salinity due to improper irrigation practices and human-induced soil erosion. In the absence o f data on the annual increase in salinity and eroded croplands and rangelands, the annual loss o f agricultural production (crop and rangeland fodder) i s estimated based on accumulated degradation. This estimate may be more or less than the net present value (NPV) o f annual production losses depending on the rate of annual increase in degradation. Annual deforestation data are highly uncertain and were estimated from secondary sources. Annual losses resulting from deforestation are estimated as the NPV o f the value o f forest area lost. Losses from natural disasters are estimated using 6-year average frequency o f negative events and the available point estimation o f damages inmoney terms. 4.1. Costs to Crop Production 4.1.1. Soil Salinity Soil salinity reduces the productivity o f agricultural lands and, if salinity levels exceed a certain level the land becomes unfit for cultivation. According to the conventional welfare economics, if agricultural markets are competitive, the economic costs o f salinity are the losses inconsumer surplus (consumer willingness to pay above market price) and producer surplus (profit) associated with the loss in productivity. The welfare losses include direct losses when degraded lands become unfit for cultivation and reduced yield as the land becomes saline or degraded. Inaddition to the above direct losses, there could also losses from crop substitution to more saline-tolerant but less profitable crops and other indirect 48 losses. Because of a lack of data, these losses are approximated by the value of "lost" output related to the salinity, with some simple adjustment for changes in cropping patterns. Total irrigated land in Tajikistan i s about 0.74 million hectares (Table 4.1.1.1). Nearly 16 % of the irrigated land suffers from various degree of salinity and related problems (water logging and soil erosion). Table 7.1.2 presents salinity levels of irrigated lands in Tajikistan. About 22 thousand hectares of lands with salinity more than 18 dS/m are cultivated. There is very little evidence on relationship between soil salinity and yield losses in Tajikistan. The single available literature i s on the relationship between soil salinity and yield losses in cotton (Bucknall, et al. 2003). According to Bucknall, et al., if salinity i s low then cotton yield loss i s 20-30 %; moderate salinity results in 40-60 % cotton yield loss, and high salinity results in above 80 % loss. We have used these data to estimate cotton yield losses due to salinity. In addition to the above results, data on soil salinity thresholds and yield effects of salinity from the international empirical literature (Table 4.1.1.3) are usedinthis analysis.18 Million hectares Total land area 14.3 Pastures 3.7 IrrigatedArable Land(potentially irrigated) 0.74 Perennialpalntations 0.15 Table 4.1.1.2: Salinity Levels of Cltivated Irrigated Lands Type of land I ISalinity Level I IIrrigated dS/m (000ha) 1 % Very Low to low salinity lands, 0-4 619 84% Slightsaline lands, 4-9 21 3yo Moderately saline lands, 9-18 73.6 10% High salinity lands, >18 21.5 3yo Total irrigatedland 735.1 100% Salinity Threshold (dS/m) Yield decline per 1 dS/m over threshold Pulses 1.5 15% Maize 2 12% Fodder 2 7% Vegetables 2 10% Rice 3 12% Wheat 6 5Yo IBarlev 8 5% Cotton 1 8 1 5 % Source: Salinity threshold and yield declines are from FA0 (1998). 18The dS/m values are roundedto nearest integer and percent,and relatively conservative values have been used. 49 Soil salinity results in changes in cropping pattern. There are no comprehensive data on changes in cropping patterns in relation to specific levels of soil salinity in Tajikistan. Hence to estimate the cost of salinity, it is assumed that more salt sensitive crops are cultivated on the lands with lower salinity. If salinity were the only soil characteristic affecting crop choices, optimal allocation would imply that the salt sensitive crops (from pulses to vegetables inTable 4.1.1.4) are cultivated on the land that has salinity lower than 4 dS/m (see Table 4.1.1.3) while crops on more saline land are mainly wheat and cotton. We consider two scenarios of cropping patterns on saline lands (Table 4.1.1.4). The first scenario assumes that only cotton i s cultivated on the saline lands. The second scenario assumes that cotton and wheat are cultivated on the saline lands, following the typical average cropping pattern in Tajikistan. These cropping patterns, though are unlikely in practice, representan upper and lower bound of the cost of salinity because of the different market value and salinity tolerance of cotton and wheat. Table 4.1. dS/m Scenario (1) Scenario (2) 0-4 Pulses, maize, rice, vegetables, fodder, Pulses, vegetables, fodder, maize, rice; salinity plus plus Wheat (204 th. ha), cotton(150 th. ha) Wheat (152 th. ha) and cotton (196 th. ha) Slight 4-9 Cotton(21th.ha) Wheat (9 th.ha), cotton(12 th. ha) 9-18 Cotton(73.5 th.ha) Wheat (33 th.ha), cotton(40 th.ha) Severe >18 Cotton(21.5 th.ha) Wheat (10 th.ha), cotton(12 th. ha) The assumed cropping patterns on saline land correspond to a cropping intensity of 1 for wheat and cotton for agricultural lands. This cropping intensity i s based on cropping intensity reportedby the Ministry of Agriculture inTajikistan. To estimate crop losses from salinity it i s necessary to estimate crop yields that would realize inthe absence o f salinity. The following equations are solved for cotton and wheat to estimate the crop yields ifthe soil i s not saline: where X is observed average yield; Xi i s yield on land with salinity leve1,i; a, b and c are share of land with salinity 1evel"i"; and dj i s yield reduction on land with salinity 1evel"i" which is estimated from the Table 4.1.1.3. Observed average yields, and estimatedyields inthe absence of salinity andon severely saline landare presentedinTable 4.1.1.5. 50 Observedaverage yield Estimatedyield in Estimatedyield on on irrigated land absence of salinity severely saline land (tons/ha)* (tondha) (tons/ha)** SeedCotton 1.8 2.1-2.3 0.4 Wheat 2.0 2.2 0.5 Table 4.1.1.6 presents the estimated annual cost to agriculture o f soil salinity under scenario 1 and 2. In order to estimate the costs, the salinity threshold values and yield decline coefficients and the cropping patterns in Tables 4.1.1.3 and 4.1.1.4 were used. The total quantities o f yield losses were then multipliedby local producer farm gate prices for cotton and wheat to get the total losses. Farm gate prices in 2006 for seed cotton and wheat were 1600 TJS and 700 TJS, respectively. The total annual cost o f crop loss from salinity ranges from 105 to140 Million TJS with a mean cost o f 124 Million TJS. The mean annual cost o f salinity i s about 1.8 % o f GDP in2006. Salinity Total Loss (million TJS) 9'0 of GDP dS/m Low I Mean I High 2006 Cotton 4-9 0 4 8 0.05% Cotton 9-18 27 88 150 1.24% Cotton 1 >18 I 44 50 I 56 I 0.70% Total loss from salinity 71 142 I 214 I 1.99% Wheat 4-9 0 1 1 2 1 0.02% Wheat I II 9-18 II 8 19 I 31 0.27% Wheat >I8 1 9 12 I 15 II 0.17% Cotton 4-9 0 2 4 0.03% Cotton 9-18 13 43 73 0.61YO Cotton >18 21 30 39 0.42% Total Loss from Salinity 5 1 107 164 1.52% 4.1.2. Agricultural Soil Erosion Inadditionto soil salinity landdegradation caused by wind and water erosion is substantial inTajikistan (Table 4.1-2.1). Table 4.1.2.1: Eroded Lands in Tajikistan (in YO) 1 IDegree of soil wash off Types of soil 1IUnwashed Weak I Medium I Strong ISubject ISubject I Total to water to wind eroded erosion erosion Grey-brown 100 100 Grey earths light 15.6 11.8 6.0 4.7 22.5 62.0 84.5 Grey earths typical 20.6 18.8 14.9 13.6 47.3 32.1 79.4 Grey earths dark 28.0 20.5 18.9 16.1 55.5 16.5 72.0 51 Grey earths meadow 81.O 19.0 19.0 Total 21.4 16.2 13.1 11.4 49.7 37.9 78.6 Mountain brown 15.7 16.7 33.2 34.4 84.3 84.3 carbonate Mountain light brown 15.4 12.5 23.2 32.3 57.9 16.7 84.6 Mountainlight brown I 7.2 I 3.7 I 21.2 I 67.9 I 92.8 I 92.8 Grand total I 17.7 I 14.8 I 20.1 I 23.9 I 58.8 I 23.5 I 82.3 Source: State Land ManagementCommittee Soil salinity i s interrelated with water logging, soil erosion and nutrient losses. Lack o f drainage on irrigated lands increases soil salinity and elevates water table. This reduces yields, places a greater load on plowing and traction machinery and compacts the subsoil. As a result o f such practices about 5 thousand hectares o f irrigated lands are not used every year (Abdusaliamov. et al., 2000). If this land could be used for wheat or cotton production, it could generate 8-16 million TJS annually, with mean o f 12 million TJS or 0.17 % o f GDP in2006. Soil erosion also contributes to sedimentation o f dams inTajikistan. Box 4.1.2.1 Dams in Tajikistan As FA0 AQUASTAT country profile reports in 1994, there were 19 dams in Tajikistan: 5 in the Syr Darya River basin and 14 in the Amu Darya River basin (7 on the Vakhsh River, 4 on the Pyandzh River and 3 on the KafirniganRiver).Their total reservoir capacity is about 29 km3and the reservoir area is 934 km2.There are nine large reservoirs (capacity more than 500 million m3each) with a total capacity of 25.34 km3and an area of 690 km2.The largest reservoirs are: the Nurek on the Vakhsh River (10.5 km3),the Kayrakkumon the Syr Darya River (4.16 km3),and the Lower Kafirniganon the KafirniganRiver (0.9 km3). Source: http:llwww.fao.orpinrlwateriaquastaticountrieslta_iikistanlindex.stm This inturn reduces the capacity o f dams and thus reduction in irrigation capacity. We do not have reliable data on sedimentation o f dams and reduction in capacity o f dams in Tajikistan. Hence estimates o f losses in crop reduction as a result o f sedimentation could not be made. Abdusaliamov et al., 2000 report that sedimentation in Tajikistan results in reduction in dam capacity that could additionally irrigate about 37 thousand hectares o f land. The estimated loss o f revenue from wheat production on this land, which could otherwise be irrigated in the absence o f sedimentation, i s about 42 million TJS or 0.6 % o f GDP in2006. Another problem associated with soil erosion i s the loss o f soil nutrients.Abdusaliamov et al., 2000 report that annually about 1 million tomes o f major nutrients i s leached out from the lands in Tajikistan, about 10 % o f which is leached out from the rain fed croplands 52 alone. Table 4.1.2.2 presents an estimate o f the amount o f fertilizers requiredto substitute annual humus loss o f nutrientsthrough leaching. Table 4.1.2.2: Fertilizers for Nutrient Loss Substitution 1IRequired to replace the Price in2006, TJS/t I leached out major nutrients, in, 000 Ammonia sulfate 50 700 Phosphorus 10 500 Potassium 100 500 The estimated cost of soil nutrients (in terms of N P K ) substitution is b ut 90 million TJS or 1.3 % of GDP in 2006. Thus, the total annual loss due to land degradation in Tajikistan i s about 270 million TJS or 3.8 % o f GDP in2006 (Table 4.1.2.3). Total Loss (million TJS) % of GDP Low I Mean I High 2006 Salinity losses 61 124 189 1.76% Unusedland losses 8 13 18 0.19% Irrigatedas rain fed use losses 43 43 43 0.60% Nutrients losses 90 90 90 1.26% Total Crop Losses 202 270 1 340 I 3.81% 4.2. Cost of RangelandDegradation The main causes o f rangeland degradation inTajikistan are irrational land use management practices leading to denudation o f vegetation from rangelands and, exacerbated by intermittent draughts has resulted in many pockets to desertification.. According to the National Program for Combating Desertification (Abdusaliamov et al., 2000) degraded rangelands constitute 96-100 % o f total rangelands in the country. Table 4.2.1 presents data on the extent o f rangeland degradation inTajikistan. Types o f pastures Area, Initial Yield of dry mass, Degree of thousandha yield centners /ha (edible land intotal) erosion,% from total area Low grassy semi-savannah 450 7.8 2.5-5.0 / 2.0-3.5 98.0 Large cereal semi-savannah 260 21.6 10.0-18.0 / 8.0-12.0 96.0 Semi-deserted, wormwood-salty 300 5.0-7.5 11.5-2.5 100 foothills & low mountains Ephemeroid-wormwood & eurotia 170 0.5-0.7 10.2-0.5 100 of PamirsAlpine 53 Passing (xerophylle 600 5.0-7.01 3.0-4.5 98 Sparse growth of trees) Summer pastures Large grassy semi-savannah 500 16.6-10.012.5-8 $0 97 Steppe & prickly grass 760 5.0-9.012.5-5.0 97 Meadow (high grassy & low 170 20 6.0-12.013.5-7.0 96 grassy) Ephemeroid-wormwood, Ayania 360 0.5-0.91 0.3-0.5 100 T O T A L 3570 ISource: Abdusaliamov E. et al., 2000 I Two methods are used to estimate the cost o f rangeland degradation. The first method estimates the reduction in fodder production and i s then valued at the price o f fodder. The foregone livestock income due to the loss o f fodder as a result o f rangeland degradation based on livestock feed requirement is then used as an estimate o f the cost o f rangeland degradation inthe second method. Very limited data are available on rangeland fodder yields. Based on interviews with rangeland experts inTajikistan and data inTable 8.1 the current average yield i s estimated at 0.5-0.7 tons o f DM per hectare on degraded rangelands. This implies that the yield decline from cumulative degradation i s at least 0.6-0.7 tons per hectare. Given the rangeland area o f 3.6 million hectares, the estimated total average loss due to cumulative degradation i s 1-1.4 million tons o f DM per year. At a fodder price o f 30-70 TJS per ton o f DM (per consultations with experts in Tajikistan), the loss as a result o f the reduced fodder production in60-SO million TJS per year average for a sustainable rangeland fodder utilization rate o f 40 or 60 %. The second method uses the reduction in livestock income as a result o f rangeland degradation. Relaible data needed to estimate foregone livestock income are presentedin Table 4.2.2. Total feed requirement in DM for the animal stock in Tajikistan is estimated at 5.3 million tons per year. The analysis showed that inthe absence o f the rangeland yield decline o f 1 million tons o f DM per year, o f which 40-60 % could be sustainably utilized, the rangelands could have supported an additional 20-30 % of current animal stock. Given that the total household net income from livestock is around 0.34 billion TJS per year (Hollinger, 2006), the loss in livestock income from rangeland degradation is about 22-51 million TJS. 54 The estimated annual cost of rangeland degradation for the two methods is summarized in Table 4.2.3. The two methods provide quite similar estimate o f annual cost, with a mean o f 53 million TJS at 0.62 % o f GDP in2006. Million TJS 1 % of GDP Market value of fodder losses 60-80 Foregone livestock income from fodder losses 22-51 Mean cost 53 0.62% The recommendations below have a common origin, namely, deterioration o f soils in Tajikistan due to irrational irrigation infrastructure management, lack o f drainage, improper grazing practices, felling o f trees and cutting down the natral busheshegetations causing deforestation on the mountain slopes and growing improper harnessing and use o f water causing scarcity starting from civil conflicts period in the early 90ies. Given the shortage o f Tajikistan's arable land area, it has come at a price: high levels o f denuded and eroded lands and increasing salinity and water logging problems in irrigated valley areas are increasingly common in Tajikistan. At the same time rigorous analysis would benefit from improvement o f data. It i s vital to conduct new national inventories o f land use pattern, degree o f soil erosion and high water table and salinity inflicted areas using the supported by modern geospatial tools. Better data would allow better identification o f problem areas and focus limited resources correspondingly. Although action has been taken recently under CAWMPI9to strengthenthe Capacity o f Tajik Land Specailists inthe use o f Geospacial tools. The study results2' of the four watersheds under CAWMP however provides the typical situation o f the vegetation cover and degradation risk classes with a population of abot 550,000 people with a agricultural area of about 400,000 ha only with an overall land area o f 36,000 km2area presenting the magnitude o f the problem in Tajikistan. Further sections address necessary institutional and policy changes in the area o f natural resources management inTajikistan. It i s important to ensure harmonized natural resources management: land management should be coordinated with irrigation rehabilitation and supported by comprehensive feasibility analysis o f soil conservation in the vast area of pasture and range lands, in mountain areas and improvement o f irrigated agricultural lands with investments in canal conveyance and drainage systems rehabilitation. 4.3. Deforestation The cost of deforestation and degradation of forests is the aggregate social loss associated with degraded or deforested lands. These costs include, in theory, a wide range of local, The CAWMP project engagedthe The Centre for Development and Environment (CDE) ofthe Institute of Geography, University of Bern (Switzerland) financing from the CTF, to work on the Capacity Building in Use of GeospatialTools for Natural Resource Management (TA-PI05244-TAS). 2o The Land DegradationRisk data on vegetation cover and Degradation risk classes on the maps for the four watersheds based on SRTM -3 topographic information ,using Landsat ETM+ images (Vanjob, Surkhob, Tohirs and Zarafshon watersheds of Mountain areas of Tajikistan under of CAWMP project, lead by Ms.JessicaMott Ref: http:llwww.cde.unibe.ch/transferlCTF Databaselaeo database.zip). 55 regional, national, and even global costs. Examples include direct losses like loss o f timber, fuel wood and non-timber products, recreation and tourism losses and indirect use losses (such as those associated with damages to ecosystem services, water supply and carbon sequestration), and non-use value loss associated with loss o f forests. This section examines each o f these categories o f losses with the available data. The losses associated with carbon sequestration have not been considered, except as noted inBox 4.3.2. Tajikistan's forest resources cover only about 3 % o f total land area. The total forest are in the country in 2004 is only about 401,000 hectares (UNECE, 2004). Although the Tajik Forestry Research Institute facilitated the F A 0 effort on the Global Forest Resource Assessment for Tajikistan in2005, the report has not provided any data on change inforest cover after 1990 (FRA 2005). This i s because forests in Tajikistan i s protected by law and only secondary cutting i s allowed, only about 6.5 cubic meters i s officially allowed to cut for wood fuel (UNECE, 2004). However, about 500-600 violations are reported annually and it i s estimated that allowed cut i s exceeded about 25%.*I Although the official documents do not provide evidence o f change in forest area due to deforestation in recent years, other documents suggest a more significant clearing o f forests. According to the First National Report on Biodiversity Conservation(2003), nearly 6000 ha o f forested area with a total volume o f 10,000-15,000m3 are affected by illegal logging each year. Given the paucity o f reliable official statistics, the study used the above estimates to arrive at a lower bound on the losses due to deforestation and degradation o f forests. In addition to the above, SAVCOR's 2005 report to the World Bank estimates about 90,000 cubic meters o f illegal logging annually (equivalent o f 7000 hectares using about 13 cubic meters country average timber volume per hectare). This estimate is applied as an upper boundto estimate the losses due to annual deforestation. The UNECE, 2004 reports the following reasons for extensive illegal logging inTajikistan: 8 Shortage o f fuel, especially during winter time; * 8 Scarcity of wood for construction; 8 High cost o f imported wood; 8 Ignorance o f local communities o f legislative-statutory acts and general preservation benefits. In the absence of official data on deforestation or forest degradation, the loss of forest value estimate i s highly uncertain. However, there are some attempts to estimate the value o f forest ecosystems for local population to support the establishment o f new conservation zones. For example, the GEF project for Dashtijum Biodiversity Conservation Project (DBCP) documented existence o f forests cover in almost all o f project area for the project (Box 4.3.1). 2' http://www.unece.orn/trade/timber/docs/sem/2OO4-1/taiikistan.pdf. 56 Box 4.3.1: Dashtijum Biodiversity Conservation Project (DBCP) Project preparationactivity included a survey o f about 1280 households in the project area. These households confirmed the significant dependence on nature resources: over the half of the households collect wild fruits (58%) and herbs (52%); close to half of the households collect wild nuts, mainly walnuts and pistachio (46%); and one of every 12 households collects mushrooms (8%). Around 17% of the households have reported an average income of US$33 for 2002 and US$50 for 2003 from such economic activities. Only a small %age of households (1.5%) reported nature products gathering as their main source of income. Average annual income per household was $233-$333. Agriculture is the main economic activity of the population and almost all households own land. Almost two third (65%) have reported that agriculture activities are the main income source for their households. Due to climatic and geographical characteristics of the region, the agricultural occupations are limited to livestock breeding, wheat production on small slope land plots, and fruit gardening. Agriculture production is at the level of subsistence. The population is experiencing serious problems with fuel supply and energy sources becauseof the lack of infrastructure and organized trading system. About 86% o f households use collected wood for heating, averaging 5-7 cubic meters per family, which covers less than 1/3 of the household needs (Source: MSP Project Brief: Tajikistan Dashtijum Biodiversity ConservationProject 23). There are about 1280 households in the project area and they annually collect about 7.5 thousand cubic meters of wood. Taking into account that project area is about 80,000 hectares and average wood density in Tajikistan is 13 cubic meters per hectare, they denude around 600 hectares annually, about 0.7 % of its area. Note that this estimate is lower than the one based on the first National Report on Biodiversity Conservation (2003), which suggests about 1.5 % of annual deforestationrate. The major threats to forests in this area were identified as: uncontrolled hunting and gathering o f rare plants, logging and intensivecattle grazing. Deforestation has a number o f effects, both direct and indirect, and hence the cost o f deforestation is very difficult to estimate. In addition to direct costs, deforestation may contribute to increased frequency and severity o f flooding and landslides, and i s likely contributing to agricultural land erosion problems. It i s also associated with impacts on quality o f water resources. However, it i s practically very difficult to identify and estimate these costs o f deforestation at the national level particularly in a country like Tajikistan where there is very limited data and past literature on forestry and biodiversity effects. Since data and background information are not available for Tajikistan we have used estimates of values for the forests in other countries, applying a range o f values to reflect the uncertainties ofusingthese values inTajikistan. According to Fisher (2003) based on his study in Republic o f Kyrgyzstan (another Central Asia country) some o f the reasons why it i s difficult to obtain reliable data on the contribution o f forest products to household income are: There is likely to be systematic under-reporting o f income by the tenants themselves; Much o f household income i s in the forms o f subsistence goods and most o f the goods are bartered. Even nuts, which i s an important part o f cash income, i s sometimes bartered; Other benefits from forest plots (firewood, mushrooms and sale o f various fi-uits) are either non-cash benefits or are not recorded systematically; The value of access to arable fields and pastures access cannot easily be converted to cash equivalent; 57 0 Nut harvests (and, to a lesser extent, fruit harvests) are extremely variable from seasonto season. As households do not usually record income, the data reported are from memory and hence not reliable; 0 Market process vary considerably even within a particular season and between seasons and hence valuation i s very difficult. The estimates in this analysis are based on the background studies by Pearce et a1 (2001) and Lampietti and Dixon (1994). Because o f the high degree o f uncertainty and data problems, we present here average as well as high and low estimates. The high-end estimates are based on the assumption that it i s possible to internalize all forest benefits based on a forest "inventory" by the local community inthe short term, which obviously i s an overestimation. The low-end estimates, on the other hand, are based on the possibility that almost no forest benefits can be internalized because o f the absence o f market infrastructure, roads, favorable public policy and highdiscount rates. Important social forest values should be considered from a long-term perspective. The present analysis considers only flows out o f sustainable wood fuel supply and non-timber products collection. The financial flows from concessions and profit o f predatory logging are not estimated. Although it i s generally accepted that in the short-term profits from predatory logging are higher than from sustainable forest management, in the long term with a real discount rate less than 20 %, sustainable management theoretically has a higher net present value (Pearce et al, 1999). Pearce et a1 (1999) study debunks common perceptions about higher profitability of predatory logging. In Tajikistan, all forests were classified as category one which means that timber production i s not allowed anywhere. Only secondary cuts for wood fuel are allowed in very limited amounts. So for the study purposes, three components o f direct use forest value were estimated: non-timber products, sustainable fuel wood production and ecotourism. Sustainable fuel wood production is estimated by the governmental agency in Tajikistan (UNECE, 2004). It i s estimated that about 6.5 thousand cubic meters o f fuel woods i s produced annually over the total forest area in the country. Then for the deforested area annual sustainable fuel wood losses would be 3-4 thousand TJS. Lampietti and Dixon's estimates o f non-timber values in Central and South America ranges from US $9 to $10 per hectare. Using a value o f 9 TJS per hectare o f deforested land in Tajikistan the total non-timber lost annually i s then 167-195 thousand TJS. Another direct use value is ecotourism. Pearce et a1 (1999) estimates these values in the range o f US $5-10 per hectare o f forest depending on the location specific character o f the forests. Since tourism industry is very underdeveloped in Tajikistan, we use 0-10 TJS per hectare as a range, and the corresponding upper limit on the annual loss o f tourism value o f recreational forest is 217 thousand TJS. The indirect use values o f forest include watershed protection, nutritional and erosiodflood prevention, and waterhutrient recycling. Although there i s no definite agreement in the literature about the magnitude o f the indirect forest value, Pearce et a1 (1999) presents a higher end estimate o f TJS 30 per hectare o f forest based on a review of literature on values associated with forests. Applying this value to the annual forest losses in Tajikistan gives an annual cost of 558-651 thousand TJS. In addition to the above 58 indirect benefits, Pierce et a1 also gives an option value for forest associated with bioprospecting (prospects o f new drugs to be developed in the future using rich forest biodiversity). The option value associated with bioprospecting i s in the range o f TJS 0.01- 21 per hectare. Usingthe upper boundthe option value associated with bioprospecting lost due to deforestation is 456 thousand TJS per year. We assign zero as the low-end estimate. Pearce et a1 (1999) based on an extensive literature o f review has also estimated the existence value o f forest associated with forest preservation at about TJS 13-27 per hectare. This implies an annual loss o f existence values as a result of deforestation cost at around 242-586 thousand TJS. As mentioned before, this analysis does not include the lost carbon storage values o f forest as the carbon market price is uncertain at this point in time. Carbon markets are only gradually emerging in the region and currently deforestation reduction i s not eligible for any compensation. However, the situation could change in the near future. Then forest values should be updated using carbon market prices and the eligible share o f the forest that can be counted for carbon sequestration could be included inthe computation o f losses due to deforestation (Box 4.3.2). The estimated costs of deforestation from different cost categories in Tajikistan are summarized in Table 4.3.1. NPV is the present value o f the stream o f costs from one year o f deforestation. The direct use values, reflecting local private forest losses, include the losses from non-timber products, fuel wood, tourism and recreation. Indirect use values include watershed protection services values. Non-use values lost include bioprospecting and existence values. Taking into account only the direct and indirect use values o f forest, the mean cost (NPV) o f annual deforestation o f 6-7 thousand hectares in Tajikistan i s estimated at about 15 million TJS (0.2 % o f GDP in 2006), with a range from 9-20 million TJS. It may be noted that values associated with ecotourism, indirect use and non-use values approximated from the literature account for about 88 % of the total annual cost of deforestation. Since the indirect use and non-use values are highly uncertain the estimate o f the total cost should also be usedwith caution. Forest service Total value 967 1536 14,560 I Source: Estimated using FRA, 2005; UNECE, 2004; Pearce D. et al, 1999; Lampietti and Dixon, 1994.; An annual discount rate o f 10 YOis used to calculate NPV. 59 Box 4.3.2. Carbon storage value Carbon storage value of the forest is an indirect use value and it is quite an essential asset from a global climate perspective. An average biomass from 1 hectare of forest in Tajikistan is 14.5 tons2', or 7.2 tons of carbon per hectare23,as in (FRA, 2005). A carbon price at US $30 per ton C02, as at the European spot carbon market, implies a carbonvalue of aboutUS $780 per hectare. The carbonbenefit of forest is however not internalized at the current stage of the Kyoto Protocol negotiations. Ifthe international community would acknowledge an important role of forests in carbon storage in a post-Kyoto regime, then some mechanism could be initiated to provide compensationfor reductions in deforestation (Strukova, 2004). This mechanism is under intensivediscussionat the Conferences ofthe Partiesto the Climate Change Convention. Given 100 % protective status o f forests in Tajikistan, environmental regulation should concentrate on improved mapping, zoning and forest inventories to ensure better control o f illegal logging. At the same time, it i s important to promote cleaner energy sources for domestic use to reduce demand for fuel wood and establish clear land use regulation prohibiting improper use o f hillside lands for agricultural purposes. International cooperation should be the base for technical support for tree plantations, reforestation and agroforestry . 4.4. Natural Disasters Tajikistan i s annually afflicted by natural disasters such as droughts, floods, landslides, avalanches and storms. Severe earthquakes occur periodically. The total mean annual cost o f natural disasters is estimated at 115 million TJS, or 1.6 % o f GDP in2006. Box 4.4.1 presentsthe documented anthropogenic reasons o f natural disasters inTajikistan (Tajikistan State o f the Environment Report, 2002). Box 4.4.1. DocumentedAnthropogenicReasons of Natural Disastersin Tajikistan The overpopulation of mountain areas and the improper selection of sites for economic activity, as well as use of technologies, cause the formation of man-made landslides, rock falls, and deep depressions, such as Shurab coal mines and other sites. The improper construction and exploitation of irrigation systems resulted in Zakhmatabad, Kamcha, and Sharora landslides, which caused the huge damage and death of many people. Building settlements in potentially dangerous landslide areas caused the destruction of the villages by huge landslides. Large reservoirs, like Nurek Reservoir, contribute to the local seismic activity, reinforcing the tectonic movements. 1Source: http://enrin.grida,no/htmls/tadjikkoe2OOl/eng/htmls/disas/press,htm State Statistical Agency o f Tajikistan maintains a large database on disasters. The database contains information on fatalities, the number o f injuredpersons, houses affected, hectares o f arable land affected, and roads, railroads, bridges, as well as public buildings, churches, educational institutions, and water supply systems and other forms o f infrastructure affected/destroyed by disasters. The number o f natural disasters and fatalities are presented in Figure 4.4.1 for the period 2001-2006. Figure 4.4.2 presents the number o f injured people and houses affected during the same period. The figures include disasters ''Including above (10 t) and below ground (4 t) biomass, and dead wood biomass (0.5 t) also. 23 Applying 0.5 coefficient of carbon contentof biomass (FRA,2005). 60 that occur more or less annually. Table 4.4.1 presents more details of the impacts o f the disasters. Figure 4.4.1: Number of Natural Disastersand Fatalities in Tajikistan (2001-2006) 1000 1 _~ _- ~~ ._ __- ~ 2001 2002 2003 2004 2005 2006 1 H - Annual naturaldisasters ElDeaths Source: State Statistical Agency o f Tajikistan. Figure 4.4.2: Impacts of Natural Disasters in Tajikistan (2001-2006) 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2001 2002 2003 2004 2005 2006 1 iiNumber of injured persons Number of houses affected i 1 pll__---i Source: State Statistical Agency o f Tajikistan. 61 Hydro-stations 21 72 65 47 69 9 283 and facilities affected Water supply and 19 50 48 30 24 11 182 sewage systems affected, km Total natural 2037 2170 2165 2438 2289 2207 13,306 disasters The State Statistical Agency o f Tajikistan is responsible for maintaining and reporting data on natural disasters inthe country. The data on number and cost of damages from natural disasters reported by the Statistical Agency are adopted inthis report to provide an order o f magnitude o f the annual cost of natural disasters. The cost o f annually occurring disasters i s based on annual averages for the 6-year period 2001-2006, for which data are available. The total estimated annual cost of natural disasters is 115 Million TJS (Table 4.4.2). The largest cost is associated with damages to housing followed by deaths, and then damages to roads. Million TJS Number o f deaths 35* Number of injured people 4 Residentialhouses affected 41 Schools and kindergartensaffected 5 Health centers affected 2 Community centers and other state buildings affected 1 Damagedroads, km 15 Bridges affected 6 Water supply and sewage systems affected, km 0 Total 115 Unitcosts of disaster impacts usedto estimate the total annual costs are presentedinTable 4.4.3. These estimates are derived from the cost estimates of the State Statistical Agency o f Tajikistan as discussed above. rringDisasters Source: Estimated from State Statistical Agency of Tajikistan; *Risk to human life is estimated as in Annex 3;**Risk of injury is estimated as in Larson, 2004. To address natural disaster problem, it i s necessary to develop an integrated response that emphasizes prevention, vulnerability analysis, and risk assessment. A crucial element o f the strategy would be the creation of a fund to provide incentives for local governments to advance in the preparation and implementation o f prevention plans. Additional nonstructural and structural measures that the Government should consider include establishing as a national priority the reduction o f disaster risk and vulnerability, adoption o f disaster prevention and risk assessment tools at all levels o f government, managing risks in land use and urban planning, and diffusion of appropriate and safe construction technologies. Mitigation o f natural disasters' impact should be an integral part of adaptation to climate change strategy. 63 V. Climate Change and Hydro Power Potential Climate change triggered by the rise in average temperature has became a global environmental problem. In Tajikistan, the consequences o f global warming are mainly observed in retreat o f mountain glaciers, increase in runoff and increase in the occurrence o f natural disasters. Due to the peculiar geographic location, the glaciers o f Tajikistan occupy up to 6% o f the country's territory and are regarded as the main glacial knot o f Central Asia that regulate the climate o f the region and its river flow. Rivers o f Tajikistan are considered as main sources of local power generation, irrigation and replenishing o f the Aral Sea. During the period o f 1961 -1990, the mean temperature in the valleys increased by 0.7-1.2 Coand inthe mountains by 0.1-0.7 Co(First National Communication, 2002). The increase in temperature in large cities was twice as high as 1.2 to1.9 Co due mainly to rapid urbanization, infrastructure development and production growth. Models o f future climate project that annual mean near surface temperature in Tajikistan will increase within the interval o f 1.8-2.9"C by the year 2050. The projected rate of warming i s much greater then the observed changes during the 20th century. Due to complexity of mountain landscape, there is medium and low confidence in precipitation scenarios, where projection varies from medium increase to some decrease. Major problem associated with temperature change inTajikistan is glaciers retreat. Box 5.1. Shrinking of Glaciers in Tajikistan Pamir glaciers are shrinking because o f global warming, which jeopardizes the nation's water supply and increases the number of natural disasters. Based on recent space photographs of the Russian Academy of Sciences there are 5729 glaciers with the total area o f 7493.4 square meters and capacity of 660 Cub. Km. in Pamir mountains. In Hissor-Alay mountains there are 3890 glaciers with the total area of 2327.8 square meters and capacity of 135 Cub. Km. Experts argue that between 1957 and 1980 Hissor-Alay mountain range lost 341.6 Sq. Km of ice or 15.6% of its total ice capacity and Pamir Mountains lost 773.3 Sq. Km or 10.5%o f their total ice capacity. Thus the Pamir-Alay range together lost 1114.9Sq. Km or 11.7%of its ice volume. Smaller glaciers that comprise 80% of all glaciers melt more intensively than the larger ones. Since 1933, Fedchenko, the largest Pamir glacier shrank by at least 1 Km and continues to lose 16 m a year, Skogatch glacier lost 98.8 mil. cub. m. Although several experts argue that these numbersare overestimated, these are the most precise estimations available as glaciers were not closely monitored in recent years. On average, glaciers that are located on the eastern side melt faster than those that are located on the northern side ofthe mountains. Since climate experts cannot give a precise scenario of melting of glaciers several alternative projections should be considered. In the worst case scenario, if the average temperature will go up by another 1.5 C" between now and 2050 one third of the total ice capacity can be lost and many small glaciers will disappear. Zeravshan river affluent will change from ice-snow to snow-ice. Kofarnihon river will lose all glaciers. Vaksh river will be affected to a smaller degree. The glaciation area o f the right bank of Surhob river will shrink by up to 20 % and the ice area by 25-30 %. Kizilsu-Alai affluent will be less affected due to its exposition to the northern site of mountains and onflow from Zaalai mountain (this slows down the melting process). Muksu river basin glaciers will shrink by 10-20%. Obihingou river basin can lose up to third of its volume. Glaciers of Western Pamir will lose up to 25% of their volume. Eastern Pamir glaciers will be less affectedas they are locatedhigher than any other glaciers. Source: First National Communication of the Republic ofTajikistan, 2002 64 The First National Communication states that glaciers melting negatively affects different local biodiversity on the mountain slopes. First National Communication, 2002 especially i s citing potential damage to tugai ecosystem (flood plain) will degrade because o f shortage o f water resources, increase o f temperature, and fire risk. Land degradation could exacerbate due to longer dry periods and higher temperature in spring and summer. Glaciers melting also alters development o f major sectors o f the economy including agriculture, water and electricity supply through deterioration o f the irrigation potential, reduction o f river flows and hydropower potential, especially concentrated in the most affected river basins. The expected temperature change evaporation will increase and irrigation systems would need more water deliveredthrough irrigation. It is estimated that water needs for irrigation o f basic agricultural crops will rise by 20-30% compared to present climate conditions. 20 % reduction o f irrigation water inthe vegetation period will cause the 15 % reduction o f cotton yield, while a 50 % o f water supply deficit will result in 35 % cotton yield drop. At the same time process o f dams sedimentation will accelerate. Since efficiency of irrigation systems in Tajikistan is only 0.65, the impact could be a dramatic increase o f water demand for irrigation (FirstNational Communication, 2002). Irrigation potential i s has the same source as hydropower inTajikistan. About 90 % o f power generating capacity inTajikistan i s hydroelectric (Library o f Congress. Country Profile: Tajikistan, 2007, http://lcweb2. loc.8ov/frd/cs/profiles/Tai ikistan.pdf). About 70 % o f the hydropower potential is concentrated along rivers Panj and Vakhsh (Table 5.1) that could be potentially affected by climate change. Table 5.1: Potential Hydropower Resources in Tajikistan Source: http://www,unti.or~/princiuals/minutes/Futureprosuect of hvdro- power engineering in Taiikistanadf 65 Although currently only 5 % o f hydropower is used, still most hydropower facilities are located there (Nurek Power Station) and some new hydropower facilities have been designed for construction on that river too (Rogun and Sangtuda Power Stations). Figure 5.1 below presents expected changes in annual river flow associated with climate change. According to some projections, a constant increase o f temperature by 3-4°C incomparison with today's climate will dramatically shift the area and the volume of glaciers thereby causing catastrophic decline o f water resources by 30% and more (First National Communication, 2002). EmtnbuniollDf Source: First National Communication, 2002 Climate change also could affect hydropower engineeringthrough increased frequency o f increased risk o f landslides and floods. Mountains occupy about 93 % o f the territory in Tajkistan. High air temperatures lead to rapid snow melting and ice thawing thereby creating conditions for formation o f glacial-born mudflows. Sometimes mudflows happen as a result o f a glacial lake outburst formed by surging glaciers. There will be a necessity in reconstruction, alteration o f the operation mode o f hydropower facilities, adapting in agricultural policy to mitigate risk o f catastrophic events. First National Communication, 2002 reports that in 1991-2000, annual loses o f agricultural gross product from extreme weather events totaled to 1/3 o f overall agricultural loss. Losses could be even higher in the longer term with further temperatureincrease. Deficient energy supply and extreme weather events could aggravate difficult living conditions and lead to excess winter and natural disaster related deaths, as it happened in 2008. Industrieswill be affected too. As mentioned in section 3.5.1 Tajik Aluminum Plant consumes about 40 % o f power generated in Tajikistan. Any interruptions o f energy supply 66 alter aluminum production with significant adverse effects on fiscal revenues and balance o f payments o f Tajikistan. Climatic change would likely lead to further reduction o f available water resources for population in Tajikistan. Already limited access to clean water (See section 3.3) could be reduced further without adequate adaptation policy. Then in the longer term already elevated diarrheal mortality and morbidity among children under five and older population could rise further. Among other adverse effects of temperature increase WHO reports (Campbell-Lendrum, D. and Woodruff R., 2007) additional cardiovascular diseases in urban ares and increased area and numbers o f infectious and vector-born diseases. There were studies inTajikistan that link malaria and temperature increase. b Source: FirstNational Communication, 2002 It is importantthat poor are the most vulnerable to adverse effects of climate change becausethey do not have resources for coping and adequate adaptation. There has been a positive movement in the recognition of the importance of climate change adaptation strategy. Phase 2 o f the First National Communication o f the Republic o f Tajikistan, 2003 studies the potential for mitigation and adaptation in Tajikistan. Adaptation section especially concentrates on the water resources problems and hydropower engineering strategy with regard to changing climatic conditions. This document determines priorities and scope o f measures that could be taken by the Republic of Tajikistan to adapt to climate change and reduce greenhouse gas emissions. This is clear from the incorporation o f these concepts in major documents on socio- economic development could reduce vulnerability to existing negative weather events and to the future climate impact. Yet, as a matter o f practice, the focus i s still on emergency events and dealing with their immediate impacts, without a sufficiently integrated response that emphasizes prevention, vulnerability analysis and risk assessment. Suggested 67 recommendations include highlighting disaster prevention and the reduction o f climate change risk and vulnerability as a national priority. Such a move would also help promoting a consistent unification o f climate change adaptation into socio-economic development programs, designing coordinated water management - irrigation and power generation plans, enhancing cross country coordination and electricity trade, as well as incorporating risk assessment policies across the various ministries and functional areas, from development planning to watershed management and hydro power projects. It i s important to strengthen technical and organizational capacities, especially at the regional and local levels, to manage risk reduction and organize the adequate response. 68 VI. Policiesand Institutions for EnvironmentalManagement Tajikistan faces a number o f environmental challenges and environmental degradation i s highly visible in the country -air and water pollution and their effects on environmental health, problems in waste management, soil degradation, degradation o f rangelands, deforestation and loss o f biodiversity and natural disasters. There i s a broad consensus at the national and sub-national levels that there is an urgent need to address the environmental problems in the country. In order to address these issues the country requires effective environmental policies, laws and strong institutions to implement them. This section presents an assessment of the existing institutions and the regulatory framework and the issues identifiedinenforcement o f the policies and regulations. Harmonized land use pattern, soil and moisture conservation measures in mountain area, with rational water management inthe irrigated agricultural valley lands are core issues of environmental damage cost reduction. Inefficient irrigation practices with inadequate drainage as well as poor land use cropping pattern approach results in low farm production income level. Limited access to drinking water and deteriorating water supply and sanitation infrastructure are major reasons o f increasing children mortality and morbidity. Harmonized water management should also account for declining hydropower potential and ensure resilience' o f development projects to climate change and adaptation needs. Lack o f energy resources puts additional pressure on the poor in Tajikistan. Although analysis of water management problems in Tajikistan i s constrained due to data gaps, cost o f environmental degradation structure identifies clear priorities and areas for future policy interventions. The analysis suggests that the key constraints inenvironmental management inthe country are not from the absence o f well defined environmental policies but rather inadequate legislation and bylawdguidelines to implement specific polices in particular, weaknesses in institutional design, lack of vertical and horizontal coordination, lack of capacity o f institutions and insufficient funding. A number o f national and local/provincial level agencies and different ministries are involved in the area o f environmental management. There exist opportunities for significant improvement in environmental management through better coordination among the different agencies. The analysis also suggests that policies currently followed do not provide economic incentives for pollution reduction and more efficient use o f natural resources. 6.1. Assessmentheviewof the policiesand programs for environmentalprotection and natural resourceuse Although the country suffered from civil war and political instability for about a decade since independence in 1992, policies and programs for environmental protection began to emerge as early as 1997. The government has since developed and implementedvarious programs for environmental protection. The different government programs and action plans formulated for protection of the environment and their progress are reviewedbelow: 69 a. State Environment Program for 1998-2008 Adopted by the government in 1997, this i s the first key policy document in the environmental sector, and sets the basis for the broader set o f environmental policies. It recognizes the importance o f a healthy and clean environment for sustainable economic development and human survival. The program envisages participation o f government, business, nongovernmental organizations and the general public in protecting and improving the environment and to teach everyone about the importance o f sustainable use o f natural resources. The state o f the environment in each oblast i s described in detail and sets out the activities needed to restore or maintain an ecological balance or rectify a particular environmental problem. It also lists immediate practical measures for preventing land erosion, allocating land for highly productive crops, reforestation and protection o f sensitive areas, restoration o f air and water quality and encouraging local industries to use environment friendly raw materials and production techniques. Inaddition to the list o f actions, the document identifies the nature o f each action, how it should be implemented, the governmental bodies responsible for the activity and the time- frames within which each activity should be completed. Each year since 1998, the environmental agency (the former Ministry o f nature protection and then the State Committee for Environmental Protection and Forestry, and now Ministry o f Agriculture and Nature Protection) prepares annual progress reports. While there has been progress in implementation o f some o f the actions envisaged, some others are often delayed by a year or two, primarily because o f lack o f funds. There has been some progress in implementation o f activities like expansion o f specially protected territories- such areas now cover one fifth o f the country. Also, reforestation efforts are showing encouraging results in the densely populated areas in the Hissor Valley, in Dushanbe and its surroundings, and in Sughd oblast. However, there has been little progress in provision o f improved water management and sewage treatment. For example, the construction o f a biogas plant at the sewage collection facility in Khujand i s less than 10% complete and was suspended midway, despite its obvious importance for the Sughd oblast and downstream territories, mainly because o f lack o f funding from the Sughd oblast environmental protection committee. b. State program on environmental education The state program on environmental education adopted by the government in 1996 envisages conservation inuse o f natural resources, the importance o f recycling and gradual transition to a closed-cycle production at all enterprises. The program calls for a system o f continuous and universal environmental education giving emphasis on education for managers o f enterprises that may have adverse impacts on the environment or who work in the area of nature protection. However, the analysis undertaken for this study suggeststhat the implementation of this program has beenvery weak from the Government side and has not received adequate donor attention. c. National action program to combat desertification In 2001, the Government appointed the chair of the State Committee for Land Administration to coordinate the development o f a national action program to combat 70 desertification. The program analyzed the extent o f desertification and soil degradation in the country, their causes and consequences- environmental, economic and social -and developed a strategy to combat desertification. The strategies include, inter alia, monitoring the desertification process and creating an information system on desertification problems, classifying the territories according to the degree o f soil degradation, measures to combat erosion and soil degradation, drafting new legislations and modifying existing legislation on the use o f natural resources, increasing the participation o f the local population and non-governmental organizations and developing social and economic instruments for action against desertification. d. National strategy and action plan on conservation and sustainable use of biodiversity InSeptember 2003, the Government adopted the National Strategy and Action Plan on the Conservation and Sustainable Use o f Biodiversity and established the National Biodiversity and Biosafety Center to oversee its implementation. The Strategy and Action Plan are intendedto provide the basis for sustainable development o f all biodiversity, from genotypes o f plants and animals, communities and ecosystems, wild and cultivated plants and domestic animals. e. Nationalaction plan for mitigationof climate change The Government adopted the National Action Plan for the Mitigation o f Climate Change in June 2003. The plan sets priorities and measures to address the problem o f climate change, to develop capacity for further research and analysis o f the climate system, and to strengtheninternational cooperation inthis area. The measures are meant to serve as a basis for planning and decision-making at the state and sectoral levels. f. Nationalaction plan in environmentand health The national action plan on environment and health has a mandate to provide information on air and water pollution and to develop measures to reduce air and water pollution to meet the WHO quality standards. g. Center for EnvironmentalPolicy and Information The Center for Environmental Policy and Information was established in 2005 with technical assistance from Asian Development Bank in order to develop capacity in strategic planning and coordination o f environmental policy. The center's objectives are to facilitate better integration o f environmental issues in strategic development plans o f Tajikistan and creation o f a database to improve coordination within and across departments and among the donors on environmental issues. The CEA study team found that this center has not beenable to meet any o f its objectives so far. h. NationalEnvironmentAction Plan (NEAP) The NEAP aspires to establish an effective system to monitor meteorological and environmental data, improve the quality o f meteorological services, implement international obligations related to the environment, inclding the national implementation 71 plan (NIP) in the Stockholm Convention on Persistent Organic Pollutants (POPS)and other chemical pollutants like DichloroDiphenylTrichloroethane (DDT), to phase them out and stopping their use, under pesticide usage. The Governement has resolved to develop a forecasting system for natural disastersand and to assess climate pattern and climate change. Following the NEAP, the National Development Strategy (NDS) and Poverty Reduction Strategy (PRSP-2), laidout the following priorities for the environment sector: improvement of institutional potential to address environmental issues with the object of achieving environmental sustainability; development of institutional capacity to forecast natural disasters and effective management of natural disasters should they occur; enhancement of natural resource management, preservation of biodiversity and protection of ecosystems. Inthe light of the above NDSPRSP-2 priorities and the problems inthe sector, the NAEP has identified the following two priorities for the strengtheningenvironmental protection: a. Implementation of institutional reforms and improvement of legislative base and promotion of existing and new investment projects. This includes measures to optimize and strengthen the functions of potential agencies responsible for the development and implementation of policies and to reinforce the legislative for environmental activities. b. Promotion of existing and new investment projects in the area of environmental protection. The specific measures include investments to promote environmental sustainability and at preventing the release into the environment of hazardous substances that have a negative impact on public health and the natural environment with emphasis on key sectors like energy, industry, agriculture, eco- tourism, etc. It should however be noted that although the environmental policies, plans, and strategies in Tajikistan are rather well developed and documented, majority of laws lack implementation mechanisms due to the limited interdepartmental coordination including poor coordination across various line ministries and state agencies. 6.2 Constitutionalprovisions and laws regardingenvironment Adopted in 1994 and amended in 1999 and then in2003, the Constitution declares that the State undertakes to ensure a healthier environment and guarantees the efficient use of natural resources for the benefit of the people of Tajikistan. Under the Constitution, land and mineral resources, water, air, animals and plants, as well as other natural resources, belong exclusively to the State. Although the Constitution declares that the State acknowledge, respect and protect individual rights and freedoms and that the State bodies and officials should grant access to information related to individual rights and interests, it does not guarantee environmental safety or right for individuals to use natural resources, including such essential ones as air, water and land. In order to enforce the constitutional provisions the government has enacteda number of legislations regarding environment and use of natural resources, which are reviewed below. 72 a. L a w on nature protection The Law on nature protection was adopted in 1993 and later amended in 1996 to delineate the environment-related powers o f various governmental bodies - the Government, the then Ministry of Nature Protection and the local Khukumats (councils/municipalities). It was again amended in2002 to preserve the uniquenesso f protected territories and to define more precisely the guarantee o f a healthy and favorable environment to the general public. The law stipulates protection o f the environment, sustainable use of natural resources and minimization o f the impacts o f economic activities on the environment and natural resources. In order to implement the environmental policies, the law identifies the applicable legal principles, the protected objects, the competencies and roles o f the Government, the State Committee for Environmental Protection and Forestry, local authorities, public organizations and individuals. It mandates a detailed ecological and environmental impact assessment on any activity that could have a negative impact on the environment. Furthermore, it requires and outlines the procedure for developing environmental quality standards. Inits efforts to deal with environmental emergencies and natural disasters the law defines environmental emergencies and disasters and prescribes the order o f actions in such situations, defines the obligations o f officials and enterprises to prevent and eliminate the consequences, as well as the liabilities o f the persons or organizations that caused damage to the environment or otherwise violated the Law. The Law also laid provisions for environmental education so as to create awareness among the public on environmental issues and sustainable use o f natural resources. b. Law on Specially Protected Territories The 2002 law on specially protected territories is designedto conserve the protected areas like nature reserves and natural parks from overexploitation. The law requires all such territories to be regarded as one system owned by the State and should be recorded in the Cadastre o f Specially Protected Territories. Each type o f specially protected territory i s subject to a different protection and use regime, for instance all activities are strictly prohibited in nature reserves, while certain areas o f natural parks can be used for tourism and other limited economic activities. The use o f protected territories i s subject to strict environmental screening so as to ensure that such uses do not cause any ecological harm. c. Law on Radiation Safety The 2003 law on radiation safety vested the Agency for Nuclear and Radiological Safety with all aspects of radiological control. According to the above law, all activities related nuclear and radiological applications, nuclear waste disposal and waste sites has to be licensed by the above agency. The country has also ratified a number o f international conventions inthis area, which were included into the system o f national legislation. 6.3 Environmental Policy Instruments The 2002 amendment to the Law on Nature Protection sets out a numbero f instrumentsfor environmental protection. They include the Environmental Impact Assessment (EIA), market based economic incentives, quota on pollution and use o f natural resources, 73 environmental education and environmental information system. 6.3.1 EnvironmentalImpact Assessment In Tajikistan, Environmental Impact Assessment is a component of State Ecological Expertise (SEE), as set out inthe 2002 amendments to the Law on Nature Protection and in the Law on Ecological Expertise. The amendment requires that all new facilities and activities that may have an impact on the environment be subject to EIA. Once environmental impact assessment i s undertaken, it i s subject to mandatory review by the State Ecological Expertise. The laws also require the Government to approve a list o f activities and objects for which EIA is mandatory. The procedures for environmental impact assessment were approved by the GoTR (as per Decree on 3.10.2006, JVc464). It authorizes the State Ecological Expertise currently under the system o f State Control inthe MinistryofAgriculture to be responsible to conduct such assessments. The Environment Protection law envisages two types o f environmental impact assessments - State Ecological Expertise (SEE) and Public Ecological Expertise (PEE). The PEE allows public with expertise and businesses to participate in the general process o f the ecological assessment o f a project. While the SEE i s the pre-conditionto beginany type o f activity, PEE i s binding only after its results are approved by the SEE, the official organ. According to the 2003 law, the objective o f Ecological Expertise i s not only to prevent negative environmental impact as a result o f the proposed activity but also to periodically monitor environmental and anthropogenic impacts. Both private individuals and public associations, who are permitted by their charters, can initiate PEE. Such PEE may be initiated only after a formal application with the local authority (Khukumat) and its approval. The State Environment and Nature Use Control Service do the SEE. The SEE may attract leading scholars and qualified third-party specialists to draft the SEE and review it. According to the Sughd Oblast Department o f State Environment Control all the SEE drafters must submit their requests to do an SEE at least before beginning o f new construction for no land can be allotted for without positive response from Khukumat. The final SEE draft needto be submittedbefore the business is allowed to actually run.An SEE i s mandatory for reconstruction o f business although the number o f SEE requests for reconstruction o f businesses i s less, as reconstruction i s usually less visible. 6.3.3 Economic incentivesand quantity restrictions The economic instruments for pollution reduction include charges for waste disposal, emission charges for pollutants discharged into water bodies, emission charges for air pollutants and charges for use o f natural resources. In addition to the prices and charges, the government has also imposed quantity restrictions on pollution discharges and use of natural resources. One o f the major environmental problems in the country is the management o f wastes. The wastes from industries, both toxic and non-toxic, and solid domestic wastes are collected and disposed by waste management services for which they receive a payment. There i s a charge per unit o f waste disposed and the total payments are based on the 74 quantity o f waste collected. Inthe case of atmospheric emissions there are quotas and charges per unit o f emissions for the different pollutants identified, the chargeable air pollutants cover 123 components. In the case o f automobiles, the government charges an annual tax on vehicles, which is a source o f revenue for oblasts, cities and rayons. The State Inspectorate for Water Resources and local (oblast, city and rayon) services dealing with water resources enforces charges on pollution discharges into water bodies. There are also quotas and charges for use o f water resources. Although the system o f charges exists for a long time, their low level would not provide sufficient incentives for pollution reduction. The major benefit o f this systemis creation of institutionalbackgroundfor environmentalprotection. 75 VII. EnvironmentalGovernance 7.1. Institutionaldesign: vertical and horizontalcoordination The previous section reviewedthe government programs, action plans and the institutions set up for protection o f the environment. This section takes a closer look as to whether these programs and institutions are capable o f or have succeeded in addressing the key environmental risks and concerns. The CEA found that the government has set norms for air and water pollution, residual traces o f chemicals and biologically harmhl microbes in food, regulations regarding noise, vibration and magnetic fields, exceeding the threshold levels results in administrative actions and financial sanctions. However, their implementation remains unsatisfactory due mainly to weak institutions to implement them and lack o f coordination, vertical and horizontal, across institutions. Although the government has enacted a number o f laws and proposals to improve the state o f the environment there i s very limited state capacity for policy development, regulation, and implementation. The measures to improve coordination in implementation of environmental policies are further outlined inthe Priority 1 and Priority 2 o f the recent NDS. Priority 1 o f the NDS identifies implementation of institutional reform and improvement o f legal basis, among others to bring environmental policy in compliance with the existing social and economic realities. It further recommends optimization o f functions and capacity building o f the organizations responsible for environmental policy implementation and guidelines to ensure that funds allocated to environmental protection are not actually spent for other purposes. The Priority 2 o f the NDS has proposals for new investment projects in environmental protection to reduce emissions from agriculture, industry and energy sectors. It also plans to develop ecological tourism inthe country. The environment protection law stipulates several types of institutions to implement the environmental regulation at the state, ministerial, businessand community levels. The state level control is exercised by the State Control Service on Nature use and Protection in the Ministry of Agriculture and Environment Protectionand by the Sanitary Inspection Service o f the Ministry o f Health and Inspection on Mining Safety. At the ministerial level enforcement is done by different ministries and the state agencies under them with no effective coordination across the ministries. Organizational structure o f environmental management inTajikistan i s describedinAnnex 4. 7.2 EnvironmentalGovernance The government has enacted a number of legislations that set forth responsibility for violation o f specific environmental laws. In particular, the Administrative Code o f 1998 establishes an administrative liability for businesses, their staff members and individuals for violations related to negligence in land use for agriculture, water use or state ecological expertise. The administration and enforcement o f the provisions o f the law are vested with different agencies and/or administrative units so that administrative sanctions can be applied by such agencies like administrative commissions o f hukumats, courts, inspectors 76 o f the State Service, veterinary inspectors, and State Committee on Land Use. The authorities o f these agencies are well explained inthe Code. There are also controls at the business level. The business-levelcontrol impliesthat every business has to observe the environmental laws. Both individuals and employees are subject to administrative enforcement (fines). The most common administrative enforcement (fine) ranges from salaries for 10 months for individuals and up to salaries for 15 months inthe case o f employees. However, in practice, both the ministerial and business-leveltypes o f controls are less than effective because o f the strong economic interest inpromotion o f businesses which in some cases overrides environmental concerns. Should a violation occur, neither a ministry, nor business would suspend their activity inthat area, nor would they report to the State Service or related state agencies. The state agencies, however, lack enough resources and technical capacity to perform periodic monitoring o f the sites. There are also instances o f corruption due to low salaries and morale ofthe staff. The inspectors who are in charge of enforcing the regulation often lack enough resources to perform inspections on a systematic basis. Usually, it takes the inspector over a year to revisit a business with inspection to see if the remedial measures suggested based on previous year's inspection are implementedor not. It i s only during this second visit that an inspector could impose a fine for noncompliance if any. An environment protection agency can suspend operation of an enterprise if it is found in violation o f the codes. For instance, in 2003, in Sughd oblast local environment protection committee suspended over 70 such enterprises. Prosecutors investigate ecological violations/citations and thus play an important role in environmental law enforcement. Functions o f environment protection inspectorate do not duplicate functions attached to the prosecutors rather they cooperate with each other. The citations are forwarded to local police departments and prosecutors' offices for investigation, and then such case may turn into a criminal violation. The Criminal Code adopted in 1998 includes punishmentsfor violations of laws regarding environmental safety, poaching, land degradation and pollution, protection o f subsoil resources. The minimal fine for such violations i s up to 2000 minimal monthly salaries or up to 8 years of imprisonment as maximum punishment.However, only 2 criminal cases were initiated since 1998. Since both were related to military activity they were not taken up incourts. Inaddition to state agencies, public organizations or trade unions can exercise control o f a state organ, a business or individual by reporting violations to law enforcement organizations or local environmental committees. The analysis conducted for this study found that although environmental laws and regulations exist, they are complex and are outdated, most o f which could be traced back to Soviet period. Such complex regulations and weak regulatory systems result in poor environmental governance. There has been much discussion on the use o f economic instruments to stimulate environment friendly production systems in agriculture, industry and other sectors, but there has not been much progress in actual implementation o f such 77 policies. It may be noted that pollution reduction if any achieved may not be due to the success in environmental governance and use o f economic incentives, but rather due to closure o f enterprises and or cut-back inproduction. The country has received both technical and financial support from international organization for environmental protection. Tajikistan is a signatory to the UNconventions and regional agreements regarding environment. The government has since then ratified domestic environmental laws and regulations so as to conform to the frameworks o f these international conventions and agreements. The analysis shows that restructuring o f the Sate Committee for environmental protection and its merger with the Ministry o f Agriculture has not improved its performance and delivery o f environmental outcomes. The current SCSNREP i s working with outdated norms and standards, inadequate legislative base for implementation and constitutional base that bring chaos and misunderstandingat all levels. Further, it may be noted that the Ministry o f Agriculture and Nature Protection has traditionally beenattaching low priority to environmental protection. The SCNREP under such a Ministry may not be able to effectively deliver better outcomes. The agency does not have enough capacity, interms o f number o f inspectors, to conduct regular inspections and enforce citations. Hence, with limited number o f inspectors, they concentrate on larger (more visible) businesses, or respond to specific claims submitted by public (for instance reports on unauthorized garbage dumping, trees felling, etc.). The scarcity o f inspectors and their work overload results in low number o f reported violations (fines). Inspectors would not normally be able to impose fine or draw up a report unless the violator is revisitedandprovedthat the violation was not repaired. Local inspectors are well integrated into the departments o f state environment control. The decisions on how to distribute responsibilities between officers on sites i s done at the local level. This often results in inspectors running unauthorized inspections with a main objective o f rent seeking. In some cases, the Service and the Departments run joint inspections, normally, as requestedby the latter. 7.3 Licensingand Permitting According to the 2002 amendment to the Law on Environment Protection all new businesses that are expected to have an environmental impact need the State Ecological expertise (SEE). An Environment impact assessment (EIA) i s a component o f the SEE and the EIA has to be accepted by the environmental protection authorities. The government has initiated compilation o f a list o f economic activities and facilities subject to these guidelines. As regards the EIA procedure, guidelines on the limits of inspections, consultations, access to information, decision making process, cooperation with NGOs and other structures as they may comply with the Arhaus Convention and role o f courts have not been finalized. The laws require public hearings on the list o f activities and the EIA procedure itself that has not yet been done. The analysis found that licensing procedure is not clearly defined inthe environmental law. The license holders are granted permits to use a certain quantity of a particular resource at a specified territory over a specified period o f time. Permits can be issued both to 78 individuals (for types o f animals or plants) and entities (to use ground waters). There are also permits for discharge o f wastes to industrial or agricultural entities. Such permits are issued by relevant State Inspection agency (for instance water or air), or by local departments. Permits allow discharge o f certain amount o f pollutant and are usually issued for one year. Individual and legal entities are eligible to become ecological experts who can conduct the impact assessments. However, such entities need to be licensed as per the licensing procedure adopted by the Tajik government in June 2003 by submittingtheir application to obtain license from the State Environment Control Service. License i s granted for a successful bidder in 15 days and i s valid for 2 years with the option for extension. The licensee may be subjected to inspection and review by State environment control authorities to comply with the license requirements. License i s necessary to participate in the EE procedure, hazardous wastes handling, industrial safety, ionized radiation, production o f pesticides and other agrichemicals and their handling. As a rule, license i s granted by a higher regulatory authority in the Ministry (Ministerial Committee) or other authorized structure. 7.4 Complianceand enforcementmechanisms There are established standards for water and air quality, noise and vibration, magnetic fields, and other physical pollutants. As regards food, the government has established food quality standards with threshold limits on chemicals or biologically hazardous bacteria in food. Violation o f the threshold limits results in administrative procedures and penalties including financial sanctions. Individual ministries establish environmental quality standards within its authority. For instance, the Ministry o f Health has the authority to regulate levels o f noise, magnetic fields and other physical factors. The former Ministry o f Environment had the authority to regulate emission of pollutants into air and water and treatment and management o f wastes. The 1998 Administrative Code sets liabilities for violation of environmental laws the enforcement o f which i s entrusted to the respective ministrieshtate agency. The above code sets liabilities on business entities, their staff and individuals for violations including violation o f SEE expertise. Administrative sanctions for violations can be enforced by administrative commissions o f Khukumats, courts, inspectors o f state service, vet inspectors o f the Ministry o f Agriculture, Agency for Land Use, Geodesy and Cartography. The most frequently practiced punishment i s a monetary fine - up to 10 monthly salaries for individuals and up to 15 monthly salaries for employees. The fees and charges collected for violations are deposited in an ecological fund. However, the number and amount o f such fines and charges collected are very low because o f poor infrastructure to enforce the laws. According to the Sughd department only about 10 % o f the violators paid the fine in 2001, which increased to about 50 % recently in 2006. Such increase in compliance i s because inspectors are reporting to the cases to departmental lawyers who in turn take the cases to court. The courts in turn dispose the cases in 2-8 weeks. The Ecological Service may also suspend business activity o f the violator. In 2003, the local environment protection committee in Sughd oblast suspended operation o f 70 business entities. 79 The 1998 Criminal Code describes crimes against ecological safety and environment; industrial safety rules, poaching, land contamination, misuse o f subsoil resources. The maximum fine can reach up to 2000 MMS and term of imprisonment up to 8 years. In practice, only 2 such cases were considered for over the past 2 years. Lack o f vertical coordination between Ecological Service and environmental agencies result in problems when performing joint inspections. Another problem is weak staffing policy and financial support in every inspectorate. Although the government has made a number o f bold steps in the form of legislations, the institutional capacity currently in place is insufficient to implementthe proposed initiatives. The wastes from industries, both toxic and non-toxic, and solid domestic wastes are collected and disposed by waste management services for which they receive a payment. The payments are based on the quantity o f waste collected. Local (oblast, city and rayon) committees for environment protection prescribe limits for disposal o f wastes for enterprises, review and approve the settlement of payments (to be prepared by enterprises and submittedto committees) and collect payments. The State Inspectorate for Land and Wastes Disposal and local committees supervise (separately or jointly) the compliance o f enterprises with ecological legislation and settlement o f all ecological payments. The inspectors have the power to impose penalties for violation o f the legislation on wastes disposal (including the cases o f unauthorized scrap-heaping and disposal o f wastes). Charges for disposal o f utility wastes are equivalent to their retail price. Such charges are enforced to stimulate enterprises to seek markets for waste products or encourage processing o f wastes by the enterprises themselves. The country has a very low capacity to process wastes from industries. This i s the main reason for the absence o f a system for collection and trading of wastes with the exception o f waste paper, which i s processed at small-scale factories. The charges for the disposal waste paper ranges from 0.024 to 0.24 somoni per ton or cubic meters while the charges for disposal of waste products like ash, rubber wastes, metallurgical sludge, non-toxic industrial wastes and solid domestic wastes are about 0.12 somoni per cubic meters. The revenue from payments receivedfor collection o f wastes is the main source o f funding for the ecological funds in the country, in spite o f the low charges for waste disposal (on the average about $0.04 per cubic meter for non-toxic industrialwastes). For example, the Sughd oblast annually collects 223,000 somoni (of which 66% are payments for disposal o f wastes within allowable limits and 34% for exceeding the limits). In aggregate they make two-thirds o f total paymentsreceived by the ecological fund. Cities establish their own charges for collection and disposal o f wastes. In large cities where such services are offered there is at least one municipal agency responsible for collection o f wastes. A typical example o f a large city is Khujand, the second biggest city after Dushanbe. Collection, transportation and disposal o f wastes in Khujand are the responsibility o f the City o f Khujand Garbage Truck Depot under the Housing-and- Communal Services Agency. The former fixes charges for collection based on its costs, subject to approval by the City Housing-and-Communal Services Agency, Khukumat and the City Anti-Monopoly Committee. Enterprises based within the city shall sign an agreement for collection and disposal of wastes with the City o f Khujand Garbage Truck Depot. The payments are based on de facto quantities of wastes collected. The City o f KhujandGarbage Truck Depot has concluded an agreement o f collection o f street garbage 80 and earth closet sewage also with the Khukumat. The cost o f this service i s borne by the municipality. The revenue from collection charges i s the major source o f revenue (about 80%) for the Truck Depot. Charges for disposal o f domestic garbage for the year 2004 was 3 somoni (less than US$l)per capita. However, only about 25 % o f households made their payments promptly. The projected revenuefor the year 2004 from collection charges was 1.05 million somoni, which would be sufficient to cover all costs incurred by the agency, including costs for purchase o f updated machinery or starting a new landfill The analysis however showed that the charges for waste collection and the other economic incentives are not sufficient to stimulate reduction inwastes and development and adoption o f environment friendly production technologies. The State Inspectorate for Air Pollution Control and local (oblast, city and rayon) environmental committees regulate atmospheric emissions in the country. The functions o f the State Inspectorate are to fix the emission quotas for the different entities and the emission charges for the set quotas and to collect the payments. The inspectors may impose penalties for violations, if any, including the cases o f unauthorized discharges and air outbursts due to industrial accidents or machinery breakage. Though chargeable air pollutants cover 123 components, only a few o f them are tested and included in payments. The local environmental coefficients are considered in estimating the emission charges. For example, local coefficients for the City o f Dushanbe are estimated at 2, for Kurgan-Tube (an administrative centre o f Khatlon oblast) it is 1.7; the coefficients for Khujand (an administrative centre o f Sughd oblast) and Tursunzade (the site o f the Tajik Aluminum Plant) are 1.4 and 1.6 respectively. The enforcement o f the emission charges however has a lot o f problems and limitations. The air pollution charges, in principle, is based on annual actual quantities discharged. However, since no enterprise (except for the Tajik Aluminum Plant) is equipped with monitoring facilities such estimations cannot be made. Instead, the estimators take into account the type and number o f operating machineries, the term o f their service and availability o f gas-cleaning facilities. Then in order to fix the limits it i s assumed that an enterprise shall be operating at full capacity. Since most o f the enterprises use only part o f their capacity, it is natural that they should claim preferential tariffs. As a rule, such claims are met. The analysis found that the current system o f payments for air pollution is not economically efficient, as it does not provide enough economic incentives to reduce emissions. For example, in the entire Sughd oblast the local ecological fund in 2003 amounted to 8,775 somoni ($2,925). The Tajik Aluminum Plant whose share in Tajikistan industrial production volume constitutes 40% annually pays only 12,500 somoni ( about $ 4,000) in air pollution penalties while its exports revenues for the first half o f 2003 amounted to $200,000,000. The state owned enterprises, particularly the electric utilities and heating companies, are excluded from payment o f emission charges because o f their poor economic standing. The inspectors in association with officers o f local ecological agencies may also agree on preferential payment rates for these entities 81 Another major source o f air pollution in the country i s the emission from automobiles and the transportation sector. The government charges an annual tax on vehicles, which is a source o f revenue for oblasts, cities and rayons. Neither the annual tax on vehicles nor the transportation tariffs promote fuel efficiency and emission reductions from the automobiles and inthe transportation sector. The water resources inthe country are managedjointly by the State Inspectorate for Water Resources and local (oblast, city and rayon) services. The local offices (oblast, city and rayon) fix quotas for intake o f water and for discharge o f pollutants into water bodies and collect the respective charges. The state inspectors verify the statements on the quantities o f water intake, pollutions discharges and impose penalties for breach o f any agreements including cases o f unauthorized water intakes, discharge o f pollutants including discharge o f pollutants as a result o f industrial accidents or problems with machinery. In cities the charges for water use supply and sewage charges are fixed and collected by rayon water supply agency, which is an integral part o f housing-and-communal services agencies. The tariffs are to be approved by the municipal housing-and-communal services agency, the Khukumat and the local anti-monopoly committee. While household consumers pay for water supply service, the Constitution does not allow for charges when water is used as a resource. So till recently water used for irrigation purposes, which accounted for 85% o f all water use, was not charged. However, now all farms, agricultural and industrial entities are subject to payments for water supplied through the irrigation systems. In principle the households are supposed to pay for the volume of water consumed. But since the water supply agencies do not have meters to measure the amount o f water consumed it is estimated based on the number o f people living in each dwelling unit and the average per capita consumption. Currently water tariff rates inthe country are so low that it may not even cover the costs o f water meters. Further the low-income groups are either exempted from payment of water tariffs or are given preferentialrates dependingon their annual household income. The current tariff structure for water and sewage i s so low that the revenues do not cover the operating, let alone the maintenance costs. For instance the Dushanbe Water Supply Agency (Dushanbe "Vodokanal") reports that the water consumption charges collected from all types o f consumers constitute 63% o f its revenues and that it i s significantly less than the operating and maintenance costs o f the water supply and sewage infrastructure. The current tariff structures do not adequately reflect the value of water and do not promote efficient use o f water resources for household consumption, irrigation and industrial uses. The system o f charges for discharge o f pollutants into water and their reporting are similar to those applied for air pollution. The chargeable pollutants cover 197 chemical compounds including 101 different kinds o f pesticides. An entity has to report to the State Committee for Statistics and Agency for Water Disposal and Sewage Discharge the quantity o f pollutants discharged into water bodies and into sewage. However, such data on discharges and the charges collected are not available. The current system o f charges for pollutant discharges does not promote economically efficient outcomes for pollution reduction. 82 Poaching has been prohibited in the country and there are penalties for violation. Penalties, especially for poaching species under extinction, are the highest o f all ecological penalties. Inorder to determine the penalties, coefficients are established for each species. The total penalty is calculated as the coefficient multiplied by the minimum monthly remuneration (7 somoni per month). For example, the coefficient for a Pamir wild ram and Bukhara mountain wild ram is estimated at 4,000 somoni, and the total penalty charged per each ram i s equal to 28,000 somoni (or $9,300). Similarly, the coefficient for a snow leopard, red wolf and Bukhara reindeer i s equal to 2,000 somoni and for a brown bear the coefficient i s 1,000 somoni. The jaegers (huntsmen) are held responsible for preservation o f species under threat o f extinction and imposing and collecting poaching penalties. The collected penalties, by rule, are to be transferred to the local ecological Fund. However, the accounts of such transfers of penalties collected, to the ecological fund are not available. Mining and use o f mineral resources require formal licenses. The Government issues licenses for mineral resources such as oil, natural gas, metallic ores and precious stones; the licenses for mining less valuable mineral resources (sand, clay and gravel) being the responsibility o f Khukumats (local authorities). The license fees are estimated as a % o f the value of the mined mineral. The fees vary from 1 to 5 % for ferrous metals and 2 to 4 % for building materials (gravel, sand and clay) to 4 to 8 % for non-ferrous metals and precious stones. All fees collected are divided equally between state (government) and local budgets. Thus the main problems inenforcement are the problems with the institutional setup inthe country and lack o f economic incentives to reduce pollutions. Although the government has proposed a few economic incentives, lack o f institutions and laws and legislations to implement them have prevented the implementation of the proposals. The main constraints o f the environmental agencies are: o lack of enough resources to runinspections and guarantee compliance, quality staff and independence; o lack of clear and concise rules and procedures for inspections, including demarcation o f responsibilities at the central and local levels; o poor coordination at all levels and lack ofexchange o finformation among staff; o lack ofuniform qualifications, national standards, licensing structure and incentives for improving technical skills for inspectors. 7.5 Economic incentives for pollution reduction It has been observed that some o f the initiatives for economic incentives are not supported with laws and mechanisms to implement them. One example is the case o f the Environmental Insurance Fund. Although the law provides for such a fund, it was never created. The law sets forth tax credits for the entities willing to use low-waste and no- waste technologies regardless o f their form o f ownership and for entities involved in the recycling or similar environment-friendly business. However, the Tax Code i s not reformed to incorporate such provisions. Similarly although it has been proposed to encourage commercial banks to advance low-rate loans to environment-conscious businesses, such provisions have not beenmade inthe lendinglaws. 83 The local authorities have not been successful in using additional economic stimuli to encourage environment friendly business/production practices. Some documents mention the need to use economic instruments for environment protection and expenses. The National Strategy and Action Plan o f Nature Conservation and Rational Use of Biodiversity approved by the Government in September 2003 i s another initiative to promote economic instruments for sustainable use o f natural resources, in particular, biodiversity protection including potential sources o f preferential financing for such activities. The measures proposed under this initiative are tax incentives for activities .that promote biodiversity protection-including those investments in roads and power transmission lines, mechanism o f mandatory insurance o f technologies impacting environment, better financing opportunities for investments that promote biodiversity protection, and fees for traversing and visiting o f protected areas. The government, in 2001, developed a draft concept on Rational Use and Protection of Water, but has not made significant progress with this initiative. 7.6 Fundingfor environmentalprotection There has beena proposal to increase the allocations to the environmental sector to at least 5 % o f the total government expenditures by the year 2010. Another recommendation i s to allocate a portion o f funds earmarked for privatization to environmental protection. However, the share o f environmental expenditures in the total government expenditures continues to be trivial and i s about 0.31 %. Tajikistan receives environment related funding from both domestic and international sources. The domestic sources include budget and extra-budget allocations from government and local budgets, and investments by state and private entities. In addition to the above, the government investsinenvironment related projects jointly with international organizations. For instance in 2004 the Tajik government's share in the World Bank Project to secure the Sarez Lake and to rehabilitate the water supply system in Dushanbe city was 130,000 somoni. In addition to the direct funding for the environment, the state budget also allocates funds to ecological agencies and other ministries, government structures and local governments for ecological purposes. There is practically no information in respect o f ecological expenditures. Although the total ecological funding, including funding o f local departments, has been growing its share in the total budget still remains at a low level, around 0.3 1 %. The Ministry of Finance manages the accounts o f the Ecological Fund.24The ecological agencies make proposals for investment and other activities with projected expenditures. The Ministry o f Finance approves the proposals and expenditures prior to allocating the funds. Beginning November 1998 all transfers to Ecological Funds are deposited on accounts o f local government and ecological agencies. Local governments have their own budgetsfor ecological funds (the expected revenuesand their expenditure per each item) to be approved by Khukumats (local authorities). 24Until November 1998 the Ministry for Nature Protectionwas authorized to directly manageand allocate funds. The Government has changed the system with a view to intensifying the supervisionof reporting on financial operationsand disposalof funds for ecological purposes. 84 All revenues for ecological funds are raised in rayons and oblast cities. The revenues raised are allocated on the following principle: 60% o f funds remain at rayon or city for disposal; 30% are transferred to the oblast fund and the remaining 10% to the government ecological fund. O f all funds transferred to ecological funds which have been raised in rayons and cities and inDushanbe 60% remain at the disposal o f a rayon or a city and 40% are transferred to the state ecological fund (of which 30% i s reserved for ecological activity in the region which transferred such funds). All transfers are taxable at 10 %, the tax revenuesbeingtransferred to the State Budget. There i s no data on spending from the ecological funds at the national level. A review o f the available accounts showed that the expenditures of ecological funds are not itemized. However, there i s some limiteddata on individual regional funds. According to Dushanbe and Sughd oblast departments 60 % o f the funds are allocated to fund specific ecological projects and the remaining 40 % are usedto meet administrative and other needs o f local committees. However, the current regulation does not specify the proportion o f expenditures that should be allocated to ecological activities and for administrative purposes. Inthe year 2003, the city of Dushanbe Ecological Fund received 151,000 somoni which was spent to purchase refuse containers for two districts in the city, finance programs o f ecological training (sponsorship o f TV programs, publishing o f ecological newspaper), plant young trees, purchase o f monitoring facilities and special shoes for inspectors, to celebrate Environment Day (including ecological awards; purchase o f a vehicle for inspectors; purchase o f office stationery). The Fund's monetary facilities were also used to remunerate officers o f ecological traffic inspectorate who supervise and control exhaust systems o f vehicles and disclose facts of illegal logging o f trees. In addition to the above expenditures, 29 employees o f the Dushanbe department are remunerated out o f the committee's budget (including eight employees o f four district committees). 7.7 Privatization and environmental governance Although privatization inTajikistan can be traced back to 1991, it gained momentum only in 1997 after the adoption of Law on Privatization of State Property. The above law specified the general principles and terms and conditions for privatization o f state property in the country. It also provided guidelines on responsibilities o f different government authorities to facilitate privatization and assignment o f revenues gained in consequence o f privatization and provision of information to mass media. In order to further speed up privatization the government adopted by-laws like the 1997 Regulation on Auctioning and Tendering Objects o f Privatization, the 1998 Regulation on Privatizing Entities and the 1997 Decree on Objects not Subject to Privatization and Objects Subject to Privatization upon the Government Decision (amendments). In 2003, the Strategic Scheme of privatizing medium and large-scale entities and restructuring natural monopolies (large-scale entities in particular) was approved by the Government which replaced all previous legislations for privatization. The Strategic Scheme that i s currently in effect, provided conditions for further promotion o f market reforms and development o f the private sector, inflow of domestic and foreign investments and increasing job opportunities with little pressure on the State Budget. 85 There were some public entities that are not subject to Strategic Scheme for privatization. Inthe case of such entities, the government has constituted a Task Forceconsistingofficers o f appropriate ministries and government agencies, whose purpose ,is to analyze business performance o f an entity and its competitiveness and to seek potential buyers thereof and arrange auctions (tenders). The task force is entrusted with the responsibility for analysis o f an entity's liabilities in respect o f environmental protection and collection o f relevant information and documents like certificates, licenses, permits, materials o f legal cases (proceedings) pertaining to entities using natural resources; disposal o f sewage; air, water and soil pollution. It may, however, be noted that the legislationdid not adequately address the environmental impacts o f privatization. Information as to how entities comply with environmental regulation and the previous environmental liabilities if any are not given due consideration inprivatizationlegislations. For instance, any outstanding liabilities to the Ecological Fund are not considered inthe valuation o f the entity when it is beingappraised. The State Committee for Management o f State Property set up in 1997 is responsible for privatization o f state-owned entities. Besides supervisingthe process o f privatization, it has been authorized to coordinate the activity o f ministries, state committees and local governments in matters o f privatization o f both national and municipal property. It was also authorized to take part in establishing exchanges and other structures dealing with privatization and to promote the government policy in respect o f arranging investments. The local (oblast, city and rayon) committees on management o f state-owned property are responsible for privatization o f small- and medium-size entities within theirjurisdiction. Although the Law on Privatization o f State-Owned Property guarantees transparency and access to up-to-date information on privatization, it is neither easily accessible nor available inpractice. The web site o f the State Committee on Management o f State-Owned Property has information only until the first quarter o f 1999. So far privatization has not brought expected results with many o f privatized entities. There i s no information on the effects o f privatization on environment in the country; in particular on investments made by privatized entities in improved production technologies, rehabilitation o f gas-cleaning facilities or investment in modern equipment. According to some o f ecological agencies in Sughd Oblast the newly privatized companies observe the ecological legislation better than the state-owned entities including the payment of ecological charges, ecological expertise charges and fulfillment o f inspectors' instructions pertaining to improvement o f the ecological situation. Local ecological agencies are not involved in the process o f privatization though they are authorized to inspect entities prior to and after privatization. The environmental/ecological agencies are not obliged to disclose to new owners any information in respect o f the entities' outstanding ecological debts not covered in the appraisal or the absence, if any, o f permits or certificates o f ecological expertise though they can provide such information if requested. As a result new owners o f entities often have to meet ecological claims the existence o f which has not been disclosed to them. Pursuant to the Strategic Scheme for privatization there are privatized large entities and natural monopolies whose products though economically essential are hazardous to the environment. However, the legislation and existing practices do not guarantee that 86 privatization o f those large entities and natural monopolies shall not cause harmful environmental impacts. Currently privatization in Tajikistan is coming to its final stage and the largest entities and natural monopolies are scheduled for privatization and restructuring in four years. The analysis undertaken for the study found that the state environmental agencies are not involved inthe process o f privatization o f small, medium or large-scale entities. As a result there is no system under which all ecological charges and liabilities of an entity being privatized as well as liabilities o f a new owner thereof in respect o f improving the ecological situation would be contractually specified. 7.8 Opportunitiesfor improvementin environmentalgovernance Environmental governance suffers mainly due to lack o f efficient institutions, poor coordination among them and inadequate economic incentives for improved environmental performance. There are opportunities for improving environmental performance in the country, some o f which are outlined below: Transparency in receipts and allocation o f funds- the accounts o f the funds do not provide details o f the receipts from the different entities, NGOs and public at large. The accounts do not provide details spending for different activities as well. Better transparency in receipts and expenditures are needed for improved planning and prospects for funding inthe future; Need for economic incentives for more efficient use o f resources: the current system o f tariffs does not promote economic efficiency intheir use. An example is the tariff structure for water. Although the law on nature protection proposes different tax incentives for environment friendly economic activities, their implementation i s constrained by lack o f appropriate by-laws. For example, the Tax Code does not provide for reduced tax rates for companies which invest in ecologically acceptable technologies although the law on nature protection proposes such incentives; The current system o f pollution charges does not provide enough incentives for pollution reduction. Under the current system o f pollution charges it is cheaper to pay charges and penalties than investing in pollution reduction; important components o f air pollution (PMIO, PM2.5) are not regulated. There is a needto improve the infrastructure for monitoring and emissions and fix liabilities on the polluters. The facilities currently available are not sufficient to enforce the pollution charges; Provision o f adequate and timely information on environmental performance, with effective legal mechanisms and management tools concentrating more on pollution prevention rather than clean-up; Effective legal systems and norms to monitor and enforce laws and regulations regardingpollution from manufacturing industries; Measures to preventuncontrolled use o f natural resources resultingindepletion and degradation. For instance, the existing land use practices do not consider the actual resource capacities, productivity and spatial diversity which in turn results in degradation; 87 . Development of an effective system of waste management (collection, disposaland recycling) system and improving effective environmental monitoring, particularly near waste management sites and landfills; 9. Development of legal system to protect biological and landscape diversity and development of better database on biodiversity inthe country; 10. Reforms in setting Maximum Permissible Discharge of hazardous wastes for each pollutant (mostly into water bodies) or source based on environmental standards that are realistic from economical and technical perspective; 11. There are opportunities for better coordination of different stakeholders to achieve improved environmental performance. Preconditions for better involvement of private sector and the civil society in sustainable development and protection of the environment should be created . 88 VIII. Conclusionsand Recommendations This section first presents a summary of the estimated costs of environmental damages in the country. It then presentsa case for strengtheninginstitutions and to promote economic incentives for pollution reduction and efficient use o f resources. Costs of EnvironmentalDamage The analysis showed that costs o f environmental damages are significant in Tajikistan accounting for about 9.5 % o f its GDP in 2006. The highest damage is from land degradation, including soil erosion and salinity, the cost o f which accounts for 3.7 % o f the GDP, followed by natural disasters (1.6 % o f GDP) and then costs due to inadequate water supply, sanitation and hygiene (1.5 % of GDP). The cost o f indoor air pollution and associated health risk i s about 1 % o f the GDP; rangeland degradation (0.7 % o f GDP) cost o f urban outdoor air pollution (0.5 %), lead poisoning (0.2 %) and deforestation (0.2 %). The above estimates show the urgency in reversing the course of environmental damages inthe country for sustainable economic growthand poverty reduction. The analysis found that land degradation is the principal environmental problem in the country the main causes o f which are irrigation-related land degradation, in particular secondary salinity, water-logging and irrigation-related soil erosion, soil erosion in rain-fed farmlands, degradation o f pastures and forests and related loss o f biodiversity and other forms o f land degradation as a result o f natural disasters and soil contamination. The second major environmental damage is from periodical natural disasters such as floods, landslides, avalanches, and storms, and severe earthquakes the total costs o f which accounts for about 1.6 % o f the GDP. The costs associated with inadequate water supply, sanitation and hygiene include costs o f mortality and morbidity from Diarrhea, Hepatitis A, Typhoid and Paratyphoid and averting expenditures associated with household boiling o f drinking water. Indoor air pollution i s mainly due to use o f traditional fuels (mainly cotton stalks); acute respiratory illness in children represents 40 % o f cost; respiratory child mortality represents 34 %; chronic obstructive pulmonary disease mortality in adult females and ARI morbidity in adult females represent 13 % o f cost each. Rural population bears 93 % o f the total cost o f indoor air pollution. Degradation o f rangelands is due to improper land use practices, denudation o f vegetation becasue o f indiscriminate grazing practices exacerbated by intermittent draughts leading to desertification. The communal nature o f farming and the tragedy o f the commons lead to overgrazing and degradation o f grazing lands. The damages due to urban air pollution that constitute about 0.5 % o f the GDP are from deterioration in air quality as a result o f particulate matter. Estimate o f costs associated with lead exposure i s based on the loss o f intelligence quotient and mid mental retardation. As there i s considerable uncertainty about the data on lead levels in blood in urban population as a whole (and the rural population) in Tajikistan, the estimates presentedhere are only for the children under 5 in urban population o f the cities with more than 100 thousand inhabitants. It does not include MMR health expenses (doctor visits, medication cost and time losses o f care givers), reduced life expectancy due to MMR and health effects related to lead exposure such as elevated blood pressure, 89 gastroenterological effects, and anemia. The costs o f deforestation include direct and indirect use values and non-use values. The direct use values include costs associated with fuel-wood production, non-timber products and tourism and recreation uses. The nonuse values include option values and existence values. It may be noted that forest cover only about 3 % o f the total geographical area and hence the marginal costs o f deforestation tends be higher inthe country. Climate change costs were not quantified in the report due to the lack o f consistent scenarios o f negative impacts. On the qualitative level it is proved that increasing temperature and changing precipitation patterns are major reasons for recent extreme weather events in Tajikistan. Changing climate leads to glaciers retreat, water shortages, increase frequency and magnitude o f natural disasters, alters hydropower development and increases pressure on agriculture. Human health and ecosystems will be affected in the long run. Further analysis i s needed to estimate annual losses due to climate change given current uncertainty o f the climate models. Institutionsand EnvironmentalGovernance The constitution declares that the State undertakes to ensure a healthier environment and guarantee the efficient use o f natural resources for the benefit o f the people o f Tajikistan. The environment protection law stipulates several types o f controls and institutions to comply with at the state, ministerial, business and community levels. At the national level there is an environmental block, the Department o fNature Use and Protection, chaired by a Deputy Minister under the Ministry o f Agriculture and Nature Protection. The State Control Service o f Natural Resources and Environmental Protection under the Department o f Nature Use and Protection i s the national level agency for environmental affairs in the country.25 Inaddition to the SCSNREP, the Sanitary Inspection Service of the Ministry of Health and Inspection Service on Mining Safety by the Ministry o f Mines are involved in environmental management. At the ministerial level enforcement is done by different line ministries and the state agencies under them with no effective coordination across the line ministries. In addition to the state level and ministerial level controls there is a business level control that implies that every business has to observe the environmental law. Although the government has set norms for air and water pollution, residual traces o f chemicals and biologically harmful microbes in food, regulations regarding noise, vibration and magnetic fields- exceeding the threshold levels results in administrative actions and financial sanctions-their implementation remains unsatisfactory due mainly to weak institutions to implement them and lack o f coordination, vertical and horizontal, across institutions. Strengthening institutions and defining specijk roles The preceding analysis found that the binding constraints for improved environmental performance in the country are: (i)weak institutional design (ii)lack o f coordination 25The other agencies under the Departmentof NatureUse and Protectionare Agency on Hydrometeorology and Anti-hail service, Agency on Forestryand Hunting, Tajik Scientific Research Institute of Nature Use and Forestry, Scientific-ResearchCenter on Water ResourcesProtection, Scientific-ResearchLaboratory on Nature Protection, State Departmenton specially protectedareas "Tajik National Park", Scientific- ProductionCenter "Tabiat" and the State Enterprise, "Saidu Sayokhat". 90 among institutions; (iii)lack o f economic incentives for pollution reduction and accountability; (iv) capacity limitations; (v) poor environmental governance and (v) insufficient funding for environmental management. The solutions to these problems will not arise from simply scaling up the institutions and or funding for environmental management, but require careful planning and coordination at all levels backed by legal and regulatory mechanisms. Both federal and provincial governments share concurrent legislative authority and responsibility for environmental management and efficient use o f natural resources. In order to achieve better outcomes, institutions at all levels should have appropriate roles and responsibilities. At the national level the roles could include: (a) Setting national environmental policy and defining specific goals for environmental quality; (b) providing resources, both technical and financial, and oversight for local/provincial environmental authorities; (c) reporting and publishing data on progress in meeting the national environmental objectives. The national environmental agency should have the mandate for enforcement o f national laws and regulations and oversight on local/provincial environmentalagencies. While the national level agency sets the national policy, responsibilities o f the provincial environmental authorities could include environmental clearance at the local level, implementation and compliance as well as monitoring o f ambient environmental quality standards. There i s also need for specific guidelines for federal oversight o f the provincial environmental authorities depending on the provincial laws and regulations for enforcement, adequacy o f technical expertise, staff and resources. Institutional coordinationfor better environmental outcomes The SCSNREP is responsible for the coordination o f environmental management at all levels and across ministries. However, the preceding analysis shows poor coordination, both along vertical and horizontal levels. The poor coordination results in problems with inspections and enforcement o f set standards and charges. Although the government enacted a number o f laws and proposals to improve the state o f the environment there is very limited state capacity for policy development and implementation. Economic incentives Tajikistan has a set o f economic incentives in the form o f charges and payments for waste products generated and pollutant discharges in to air and water bodies. The analysis however showed that the charges for waste collection are not sufficient to stimulate reduction in wastes and development and adoption o f environment friendly production technologies that reduce waste generation. In the case o f air and water pollution, current system o f payments is not economically efficient as it does not provide enough economic incentives to reduce emissions. Automobile emissions constitute another main source o f air pollution. The government charges an automobile tax that does not promote fuel efficiency and emission reductions. Quantity restrictions Inaddition to prices and charges, the government has enforced quantity restrictions on the amount o f wastes and pollutants that can be discharged into air and water. There are also quota restrictions on the quantity o f water, mineral and other resources o f that could be 91 used by individual business entities. However, the enforcement o f these restrictions is constrained by the available infrastructure for monitoring and enforcement. Recommendations The analysis revealed that there are opportunities for improving environmental sector and its performance in the country. The cost o f environmental degradation reveals the focus areas for such an improvement. For the nearest future, major focus should be on water resources management, which has critical importance for the productivity of agriculture, the prevention of human healthrisks, andenergy security inTajikistan. Inlonger term, the cost o f environmental degradation will be exacerbated by climate change. Also, the priorities may be shifted overtime. Therefore, the improvement o f monitoring, information systems, and forward looking risk analysis are essential. Due to multimedia and multidisciplinary character o f the underlying problems, there is a need for robust interagency coordination. Along with strengthening o f SCSNREP other agencies may also play an important role, for example: the State Committee for Emergency, the Water Management Authorities, and the Ministry o f Energy At the same time, mitigation o f environmental degradation costs should be closely linked with poverty alleviation strategy o f Tajikistan (PRS). Immediate measures should include improvement o f appropriate soil and water conservation coupled with efficient irrigation water manangement practices through improvement o f the canal and drainage infrastructure where it i s viable. This i s essential for sustaining and increasing the farm production both in mountain areas and valley lands Furthermore, reducing chemical contamination o f surface and groundwater also i s an equally important aspect. Rangeland and pasture land improvement i s important to enhance the income levels o f the farming communities in the mountain area. Improved irrigation water use policy in combination with improved land management practice o f the rainfed lands will reduce vulnerability to natural disasters. Taking into account specifics o f Tajikistan, access to potable water and alternative energy sources like small hydropower will create highest value added with respect to mitigation o f the current and future environmental degradation cost. Also, small hydro and improved stoves programs are important in reducing indoor air pollution related to solid fuels used for cooking. These and other recommendations related to general improvement o f institutions and management are summarized inthe table below. 92 Table 7.1: Recommend d Actions . - 1 Objective Recommended Short-termActions Institutional reform 0 Develop a priority-setting mechanismbased on: (a) the impactsof environmentaldegradationon the poor and other vulnerable groups, (b) the most urgentneeds as perceivedby the population, and (c) the major costs and risksthat environmentaldegradation infringes on the overall society 0 Establish a planningprocessto align environmental expenditurewith priorities Establish Environmental Health Servicewithin the SCSNREP to regulateenvironmentalquality parametersthat affect health including (i) emission of PM2s, lead, toxic pollutants; (ii)fuel quality to tackle air quality; and (iii)water quality parameters such as bacteriological quality, Persistent Organic Pollutants(POPS),Volatile Organic Compounds (VOCs) and heavymetals. It includes improvement ofthe infrastructure for monitoring emissions and fixing of liabilities on the polluters. 0 Ensuretransparency in receiptsand allocation ofthe environmental funds for improved planning and prospects for funding in the future 0 Develop a comprehensive database on available natural resources and resource use to facilitate a more transparent monitoring of actual natural resource depletionhse levels 0 SCSNREP to strengthen its capacityto coordinateand foster consensus- building among sectors. Policy reform 0 Establisheffective legal systems and norms to monitor and enforce pollution regulationsfrom manufacturing industries 0 Reforms in settingMaximum PermissibleDischargeof hazardous pollutants (mostly into water bodies) based on environmental standards that are realistic, consideringeconomicaland technical efficiency issues 0 Reform of economic incentivesfor pollution reduction 0 Reform of economic incentivesto prevent uncontrolled use of natural resourcesresulting in depletion and degradation Reduce soil degradation 0 Conducthpdate new national inventoriesof (1) soil erosion and (2) soil salinity 0 Rehabilitate irrigation infrastructurewhere it is viable Revisethe Water Lawsto authorize higher, broad-based fees for water use. 0 Improve land management practicethrough zooming and mapping with geospatialtools use ieduce vulnerability to iatural disasters Adopt structural and nonstructuralmeasuresto reduce vulnerability to natural disasters, including the adoption of adequate construction technologies, practices, and standards in poor urban sectors and among the rural population 93 Reduce healthrisks associated with inadesuate Promotehandwashingprogramsthat target children under the age of 5 water Supply, sanitation and Promote safewater programsthat includes disinfectionof drinking water hygiene at point-of-use. Reduce cost of environmental degradation Promote small hydro and other cleaner fuels in areas that predominantly associated with indoor air use solid fuel, and implement actions to improve availability and access to pollution solid ful users in a safe and cost-effectivemanner Implementa programto promote improved stoves Reduce health risks associated with ambient air Establishnationalambient standardsfor PM25and PMloinpriority urban pollution areas and strengthentechnology-specific emissionstandards for PM and its precursors(particularly sulfur and nitrogen oxides) Implementan air quality monitoringprogramto monitor PM2.5, PMlo, and ozone inpriority urbanareas Implementair pollution control interventions aimed at reducingautomobile emissions. The measuresto reduceemissions include eliminatingleaded gasoline, improvingthe quality includeofthe fuel, particularlythe imported fuel, and improvingthe system of maintenanceand inspectionsof the transportationfleet. Reduce deforestation Improve land management practicethrough zooming and mappingwith geospatialtools use Development of legal systemto protect biologicaland landscape diversityand development of better database on biodiversity inthe country. Reduce unauthorized disposal of industrialand Development of an effective system of waste management (collection, municipalwastes disposaland recycling)and effective environmental monitoring, particularly near waste management sites and landfills; In the longer term it is important to develop coordinated water management - irrigation and power generation plans, enhancing cross country coordination and electricity trade, as well as incorporating risk assessment policies across the various ministries and functional areas, from development planning to watershed management and hydro power projects. 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September 2007 http://www.fa0.org/nr/water/aquastat/countries/tajikistadindex.stm 99 UN Economic Commission for Europe: Tajikistan Environmental Performance review, 2004 http://WWW.unece.orn/env/epr/studies/Taiikistan/welcome.htm Investingin Sustainable Development:Millennium DevelopmentNeeds Assessment, 2005 ADB Country EnvironmentalAnalysis, 2004 Draft version of PRSP 2 (2007-2009 period) - Government Working Group materials, 2006 InformationEnvironmentalBulletin, 2006 DraftversionofNDS up to 2015-GovernmentWorking Group materials,2006 100 Annex 1. L a w on Nature Protection The Tajikistan Law on Nature Protection warrants the polluter to pay for the damages based on the national principle "he who pollutes shall pay". The polluters shall be charged for industrial waste and disposal thereof within and beyond the allowable pollution limits. In the case o f natural resources the guiding principle i s "he who uses shall pay" whereby the users o f natural resources shall pay for the right to utilize resources within the established limits and beyond the limits. The Law specifies the following economic instrumentsfor environmental protection and natural resource management: Payments for use o f natural resources; Payments for disposal o f pollutants; Payments for elimination o f waste and other kinds o f pollutants; Preferential o f tax and interest rates for entities usingpure technologies; Penalties for damage inflicted on the environment and human health and compensation to those affected; Additional taxation o f entities whose activity is hazardous to the environment. The Law also allows local governments to use any other economic incentives for environmental protection. The Law provides for three sources o f funding activities aimed at environmental protection: government and local budgets; government and local funds o f nature protection; voluntary contributions o f physical and legal persons. The nature protection funds have been established for the purpose o f funding environmental protection and to provide compensation for damages inflicted to nature. In addition to the government fmds and voluntary contributions the charges for use o f natural resources; disposal and elimination o f waste and pollutants; penalties for violation o f the ecological legislation; voluntary contributions also contribute to the environmental fund. The Government determines the amounts of payments, methods o f their estimation and collection, penalties and charges for the use o f natural resources and environmental pollution; besides it prescribes the procedure o f establishing ecological funds and o f the disposal o f their funds. In Tajikistan all kinds of charges including those payable for environmental pollution beyond the established limits are called payments; the term "penalty" is used exclusively for an individual liability inaccordance with OSCE terminology nomenclature and includes all kinds o f payments chargeable to companies and individuals for pollutions beyond the established limits. The term "pollution charges" means payments for environmental pollution (including waste disposal) within the established limits; "payment for services" means payments for services rendered such as water supply; "charges" are payments for licenses and permits. All payments, charges and penalties shall be indexedin accordance with inflation rates. Inorder to implementthe Law on Nature Protectionthe government has passeda a few decrees and regulations, which together developed the following framework: 102 The procedure o f charging payments for environmental pollution, pollution disposal and their margins as approved by the Council of Ministers in 1993 and subsequent instructions prescribe a practical guide on use o f economic instruments; The guiding document on nature protection "Methodological Instructions on Collection o f Charges for Environmental Pollution'' (PA-01-93) specifies a procedure and methods o f calculating various payments and charges for environmental pollution. The 2001 additions and amendments thereto prescribe new tariffs payments for waste disposal and elimination thereof and details other payments, collections and compensation for environmental damage with due regard for inflation rates as provided for in Law on Environmental Protection. The documents aforementioned were issued by the then Ministry o f Nature Protection and approved by the Ministry o f Economics and Commerce and the Ministry o f Finance. The 1998 Regulation on Government and Local Funds for Nature Protectionspecifies the sources o f funding, allocates the payments received to local and government Funds and outlines the purposes oftheir disposal. The Law on Nature Protection determines economical instruments for air pollution control including the sources o f funding thereof as well as charges for air pollution (withinand beyond established limits). The Law on Management o f Production Waste specifies that the waste management payments depend on the volume o f wastes and their toxicity category. Both Laws are complemented with GuidingDocument RD-01-03 (see above), which regulates the payment procedure. The Law on Natural Resources contains provisions pertaining to payments for geological prospecting and mining o f mineral resources. The precise procedure o f collecting payments i s provided in regulations on the amount, manner and terms o f collecting payments for disposal o f natural resources and inRegulations on licensing the right to use such resources. The Water Code contains provisions of charges for disposal o f pollutants in water bodies and compensation for damage to water resources. The water users who are engaged in socially beneficial activity aimed at rational disposal and protection o f water resources are remunerated according to the procedure o f awarding premiums. Such activities includethe development and implementation o f technologies for economical disposal o f wastes into water resources, advanced technologies f sewage purification, construction o f water purification facilities, closed water supply systems and implementation o f processes preventingthe accumulation o f sewage. There are no special national or local funds for payment o f premiums for such activity although the additional investments may be needed to initiate such environment friendly activities. The money therefore is supposed to be provided by entities which i s possible only in the event that the activity aforesaid has allowedthem to make sufficient savings. 103 Annex 2. List Of EnvironmentRelatedLegislationsand Authorities In-charge of IssuingPermits,Approvals, Inspectionand Law Enforcement Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement Wastes There is not uniform wastes management strategy 01 bThe government defines thc policy. norms, calculation methods anc .State environmental program 1998 - 2006 application of fees, charges anc adopted in 1997 contain no wastes managemeni fines for use of natural resource: sections of chapters but highlights some o f the and environment pollution. problems. In includes: bthe Environment protectior 0 Rational use of natural resources; committee (EPC) and other related 0 Developmentof low wastes technologies; organs are entitled to observe 0 R&D works to produce environmentally implementation of the Law on acceptable methods of mining, including industrial wastes and consumption. The firs1 wastes recycling; stage must be instructions drafting 0 Introduction of clean production and adoption. Iaw Governmenf mechanisms in processingand mining industry and decree in June 2003 there were Reduce wastes discharge and disposal. promulgated by-laws on licensing Yet, there is no monitoring information on the of hazardous wastes handling. implementation which makes it difficult to assess real bFunctions of radiation control, situation.No actions are taken. licensing in nuclear industry and .Law on industrial wastes and consumption - nuclear wastes inventory was 2002. vested in the Agency of nuclear and Introduces terminology and types of wastes and radiation safety. :ethnological processes of their disposal and blocal (oblast, city and rayon) iischarge. It prescribes rather strict rules on the state mvironment protection committees :ontrol over all the norms and wastes management set forth the limits for wastes standards including industrial, hazardous and -emoval, approve and revise nunicipal wastes; requirements to open wastes :harges (fees) (prepared by lisposal sites specifically those located in the risk mterprises and submitted to the cones; expects design of state classification system of :ommittees) and collect charges. ndustrial and municipal wastes; issuance of "wastes ,The state inspection on land and nanagement passports with the data on wastes and aastes and local committees heir quality parameters, including toxicity class and separately inspect (rarely together) icensing of hazardous wastes management activity. :ompliance of the environmental The would stimulate minimizing wastes volumes, their aw by businesses, including ,ecyclingand separation of valuable components. )ayment of all ecological charges. FThe Ministry Soviet in 1993 adopted its Decree nspectors may levy fines for letting fees and norms for wastes. iiolations of the wastes FThe law on Environment is the legal basis to nanagement law (including wastes ntroduce economical instruments. It envisages ,emoval without permits and :conomic mechanisms to environment protection to inauthorized wastes dump). timulate state organs and public to implement Zharges for secondary raw material neasures for rational use of natural resources. The law emoval are the same as their ntroduces principles "the polluter pays" when the vholesale prices. In theory, this )olluter pays for the right to use natural resources nust stimulate businesses to look inder the established limits. The polluters pay for or secondary raw materials market, lischarges and wastes, pollutants, wastes disposal and )r recycle it. Lack of processing lther types of wastes. The law enumerateseconomical apacities for the majority of nstruments for environment protection including econdary materials indicates IaYments for wastes removal and disposal. lmost zero system o f recycled raw t ((Payment fees for environment pollution, wastes naterial market. The only management)) as approved by the Ministry Soviet in xception is waste paper. (there are 993 and Instructions for practical guidance to apply mall paper recycling businesses). conomical instruments)). ,Oblast/city EPCs establish own .The Law on Industrial Wastes and Consumption harges for wastes collection and iforms on that the wastes management methods isposal. In big cities there is epend on their volume and toxicity class. The ormally one such municipal waste 104 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement calculation fees for this Law are described in the management business. ((Methodological instructions to levy charges for environment pollution)) (PA-01-93) issued by the former Ministry of Environment Protection and approved by the Ministry of Economy and Trade and Ministry of Finance. Discharges The Law on Environment protection of 1993 lists The major economic instrument on economic instruments for environment protection of air quality management are the including charges and fees regulation for wastes fees for pollutants discharge by management; stationary and mobile sources. The law also allows for local authorities apply other Distribution of responsibilities types of economic instruments for environment between the State inspection on air protection. and local (oblast, city and rayon) In addition to the Law on Environment Protection and EPCs is similar to the State a number of other legal instruments, such as: inspection on Land and wastes and 0 Regulating document for environment local committees. Insignificant protection PyKOBOnHUHA AOKYMeHT no OXpaHe difference is that a number of large npkiponbi ((Methodological instructions to levy enterprises (e.g. Tajik aluminum charges for environment pollution)) (PA-01-93) plant and Khudzhand furniture describes procedures and methodologies for fees and plant) are under direct control of the charges calculation and in the amendments of 2001 state inspection and are not subject expects new tariffs for wastes disposal and damage to to inspectionby local EPCs. environment including inflation rates. They are issued bInspections set up their quotes by the Ministry of Economy and trade and Ministry for air pollution, revise and approve of Finance. of calculation of charges for air pollution and collect charges. Inspectors may impose fine for air law violations (including air pollution without permits and pollution outbreaks because of the equipment failure or malfunction). Permits for pollutants discharge are issued by relevant inspection (e.g. State water inspection or State air inspection) of local EPCs to industries or farming businesses who discharge their by products. The permits allow pollution in the established quantities (gases, liquids, hard wastes). The permits are normally issued for one year where maximum permissible concentrations are indicated. Inspectors in coordination with local inspectors have the right to completely relieve environmental charges or reduce air pollution fees for state enterprises taking into account general economic conditions. .The guiding document PA-01-93 defines enterprises producing heat and electricity for households authorized to ask for reduced or canceled air pollution fees. bAnother air quality management tool is quality management and transportation in the form of annual 105 Key environmental Key legislative/politicaI instruments ~~Authorities in charge of issuing ~~ sectors permits, approvals, inspection and law enforcement transport tax. Its purpose is to accumulate budget revenues (in oblast, city or rayon). Tariffs remain very low and do not reflect transport impact on environment. Pollution of water, soil and .Sustainable use and protection of water is the Water management issues are ground water political priority in Tajikistan. According to the distributed between ministries and Constitution water is the state property and it is authorities as defined by the designed to ensure rational water use and protection. government decree of 2002 b The Water Code was enforced in 2000 and is regulating powers of water use and implemented by a number of instructions. The Water protection among the authorized Code improves economic mechanisms of water use state organs. In particular, 5 organs and defines organizational system of water use and are involved: protection. bwater units andtheir ecosystems It also set forth the legislative basis for the protection are in the jurisdiction of Associations of Water Users (AWU) and their EPC under the Tajik government; relations with the state rogans involved in water issues. it i s also responsible for However, a serious problem is that AWUs may not be hydrometeorology and forestry. proprietors of water supply systems ; they can only The powers include general water assists in water use issues. However, such legislative management issues and water frames are not strong enough as prescribed by the distribution in particular among Concept of rational water use and water resources the economy sectors, while protection which calls for drafting new instructions to practical water distribution issues revise water use tariffs, drinking water supply, water are vested in the relevant monitoring and water protection. Other laws regulating ministries and organs. permits for water intake and water inspections are not .Ministry of melioration and established yet. There is still no law regulating water water resources (MMWR) is in intake practice and use of ground waters. charge o f practical water The Water Code does not reflect modern principles for distribution issues and agricultural it support the centralized system of management and sector supply, water supply does not include complex management of infrastructure servicing of rural hydrographic basins, does not coordinate policies and population. It collects water use practices of the authorities in charge and does not charges, negotiates water mention monitoring and actions as the fundamental distribution with the neighboring management tool. countries and overseesthe national .Law on Nature Protection of 1993 includes water use quota. several articles on agriculture. For example, they bTajikgeologija monitors regulate use of fertilizers and pesticides, use of auriferous layers and ground water biological and chemical substances and protection of quality, drills new water holes. food from such pollution, soil pollution and rational .Sate committee for control over land use, protection from cattle farming pollution industrial safety and in mining practices. industry is managing thermal and .According to the Constitution all the land is the state mineral waters and ensures safe property and is not subject of sale. ,The Land Code operation of industrial mines, and is the main law that regulates land use including its monitors water discharged from management and taxation. A land user may rent land mines. or acquire it for use for lifetime (for individuals) with .Ministry of Energy and Industry the right to inherit this land. Every household has its is managing water supply for right to enjoy a 0,15-0,40 ha land plot. The land Code electric power generation. contains mechanisms for revocation of land use rights All these state organs have their including situations when such land use leads to its regional departments and offices. degradation. Such decision is made by local .Ministry of health is in charge of authorities. The "due land use" means harvest drinking water quality, monitors cultivation and cropping. A farmer who has no funds water infections, in charge of 73- to procure seeds and other materials during one year is stations network of epidemiological exposed to the risk of losing his right to land tenure. In stations. practice, the land can be taken back to the state if it is .The Tajik vodokanal outlets (in not used for 2 years in a row, and such practice is often oblasts and rayons) and 106 Key environmental Key legislative/politicaI instruments 4uthorities in charge of issuing sectors permits, approvals, inspection and law enforcement :xercised to the state-owned farmers. For less serious rajikkomuniservice managing iiolation land user is subjectedto fines. ryater supply infrastructure of water b Law on Land management of 2001 obligates the ;upply and waste water treatment at ;tate authorities to practice land mapping and .henational level. nonitoring of land quality including land pollution, Such fragmented water ;oil erosion and water logging. The Ministry of management needs better 4griculture is preparing a new draft law on soil :oordination with the other line brtility. state organs and ministries being ,Law on Dehkhan (Farmer) Household of 2002 integral parts of this system. lefines the process of privatization in agriculture. It Monitoring ilso introduces 3 forms of private farms: managed by Six different organs monitor water individual farmers, family farms and cooperatives, of quality: `partnership" farms. The shareholders of the former 0 State organ on jtate farms decide on their meetings on new form of hydrometeorology, Committee on farm ownership. Such decision must be approved by mvironment protection managing :he local authorities. the hydrometeorological network The privatizations decisions are not fully transparent and monitor water quality and md fall under the "cotton interests" of the state and quantity (physical and chemical 3ther stakeholders. A larger farmer units are easily parameters). There are 97 water managed in cotton growing other than large number monitoring stations, of them 81 3 f small farms. Another reason to keeping big farms operational. The frequency of together are big irrigation systems covering big land measurements, types of areas, require technical maintenance as one system. measurements and the number of Limitations are administrative failures for private monitored parameters has farmers to obtain land certificate, their cost varies from significantly decreased since I99I $20 to $400 USD. Further every land user must pay due to the lack of budget financing. land tax and depending on the land quality and 0 MM&WR monitors :ategory 85% of this tax must be used for land water quantity discharged from its improvement. However, this tax is also used for infrastructure to agriculture, power another purposes. Being dependent on irrigation the generation facilities, industry and Land Code of 2000 is important for agricultural land households. management. a Tajikgeologija is in .Law on Ecological Expertise of 2003 and Decree charge of the quality and ground to establish Commission on Chemical Safety of water levels at the depth exceeding 2003 set forth rudimentary regulatory frames for 15 meters. Observations performed pesticides and other chemicals registration and use. twice a year, yet the need is to do it The Chemical Safety Commission regulates the every month. It also keeps the system of chemicals registration, testing and control. It ground water cadastre. is headed by the Vice-prime minister and includes 0 The vodokanals in rural representativesof the State committee on environment areas and in cities monitor water protection and forestry, Ministry of health. The quality supplied to public. They commission meetings approves the list of pesticides as suffer from lack of labs due to the may be requested by distributors or manufacturers. budget deficit after the civil war. Now the new list of chemicals is being prepared. 0 73 sanitary epidemiological stations and laboratories monitor drinking water quality, in particular bacteriological quality and may apply measures where the need may be. a The oblast level inspection of the Committee are responsible for pollution sources monitoring and apply measures if concentrations exceed permissible levels, The Committee includes 4 laboratories with new equipment supplied in 2003. if necessary, they can conclude contracts with the State Organ on Hydrometeorology 107 NENE Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement or other laboratories to perform chemical analysis. In general, all the monitoring organizations suffer from the lack of financing and monitoring activities supply few valuable data. Any obtained data are used to employ fines and charges policy but not to employ protection or remediationmeasures. There are several economic instruments of water resources management. They include charges for water pollution, water supply, treatment and water law violations. The renewed economic instruments integrated in the Water Code, such as fees for water supply and rights and obligations of water users. Allocation of responsibilities between the State Water Inspection and local (oblast, state and rayon) EPCs is similar to the same for the other inspections and EPCs. Local committees set up limits for enterprises for water pollution volumes, water intake, review and approve of the feedcharges calculation methodologies and collect payments. Inspectors may levy charges for the water law violations (including water pollution without permits or due to the equipment malfunction). Fees for water supply and sewage water servicing in cities introduced and managed by local vodokanals (municipal enterprises which are a part of communal services). The tariffs must be approved by municipal communal department, hukumat and local anti monopoly committee. Since the suppliers according to the Constitution must pay for water supply there is no such category of payment for water as resource. Until recently there were no payment for a service for water supply for irrigation which makes up to 85% of total used water. The MM&WR now levy charges from farmers, agricultural and industrial enterprises if water supplied through its water supply system. The Table 3.6 shows data on the current payments for services in water supply sector. [f the tariffs for households are 108 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement calculated per cubic meter, the actual payments are based on the actual number of residents for there are no water meters (their installation cost economically is not feasible). The vodokanals review tariffs based on the per capita water consumptionnorms. This fee is not adequate for due technical maintenance of water supply infrastructure, including due waste water treatment befoe its discharge. Even at the 100% of collected fees the current tariffs are not enough to cover maintenance costs and water supply infrastructure improvement. The inspectors rather focus on the regulatory and punitive measures regarding water use and waste water discharge. E.g., they impose fines for water law violations (including undue or unapproved water use) and for ignoring earlier prescriptions of technical improvement, overdue payments for water pollutants dumping and complete or partial enterprise suspension if the enterprise do not comply the limits for water pollutants discharge. The of payments for discharge and reporting are similar to the same for air pollution. Payments for water pollution are established for 197 compositions, including 101 of pesticides. An enterprise must report to the State statistics committee and EPC for the use of water and sewage water discharge (including pollutants content in the dumped water). Yet, there is no data on the collected amounts by pollutants within the established limits. The modem structure of payments for water supply services does not serve as financial stimulus for water protection and rational water use and do not cover current maintenance costs in the water sector. Payments and fines for water discharge are unable to reduce or prevent water pollution and ensure incomes into ecological funds. Instruments for natural resources management include payments for survey and extraction of minerals, 109 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement fines for pouching. Fines for pouching for the endangered species are the highest of all the ecological penalties. Forest rangers are responsible for protection of endangered species, fines imposing and collection. The collected amounts must be kept at the local ecological funds yet there is no data on actual amounts collected. It is expected that payments for exploration and extraction of minerals must support budget. The license fee is calculated as a per cent fee of the extracted material. The range is 1 4 % for black metals and 2-4% for construction materials (gravel, sand, clay) up to 4-8% for precious metals and stones. License i s issued by the government for oil, gas, ores and precious stones, and by hukumats for the so-called mined materials (sand, clay, gravel). All the collected fees will go to local budgets (oblasts, city, rayon). Fees for licensing and other minerals are divided between the state and local budgets (50/50). These revenues are not marked as for special purposes. This instrument are not related to environment protection. Ministry of agriculture is first hand responsible for agricultural policy but due to the ongoing privatization it is loosing its role. Over the past years the number of employees reduced from 1200 no 180. Department of water and land use of 3 staff is responsible for rational use of farmlands. Role of the EPC in the issues of land management and agriculture is very limited. The state land and wastes inspection is responsible for land use control and in charge of the work of ecological inspectors in oblasts and rayons. Control is primarily relates land contamination, drainage, use of humic horizon, weed grass invasion and crop rotation. The inspection's resources are very limited. Committee of land management, cartography and geodetic surveys 110 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement with its oblast, city and rayon offices26 is responsible for land policy, land reform and land use control. It is the main organ responsible for implementation of the Land Code. Its main department of state land control over land resources also controls land use in cooperation with State inspection on land and wastes. Chairman of of the Committee for land management, cartography and geodetic survey is responsible for works related to the UN Convention on Desertification. Two institutes of the Committee are in charge of the major portion of practical work related to land reform including land cadastre and mapping. MM&WR is responsible for water management and water infrastructure. Commission on chemical safety is responsible for registration and use of pesticides and fertilizers. Cooperation and coordination between state organs i s not always smooth. In this context cooperation between the ministry of agriculture, committee on land management and EPC ,ay be improved. Now, for instance, the information flow between the organs is reduced. The two mentioned WB projects on privatization and water infrastructure rehabilitation for irrigation include skills upgrading component; such center was established. It offers training courses for farmers, local administrators and experts. In 2004 it is panned to hold training for 7 000 people. Ecological aspects are discussed at 1-2 weeks long courses. Licensing are legislative instruments to regulate potentially dangerous activity where minimum qualification is required and strict observance of the rules to guarantee effective and safe operation, and that it will not lead to potentially irreparable harm to environment and health. Licensing is necessary 111 Key environmental Key legislative/politicaI instruments Authorities in charge o f issuing sectors permits, approvals, inspection and law enforcement to participate in ecological expertise; operations with dangerous wastes, industrial safety, sources of ionized radiation, production of pesticides and other agricultural chemicals and their handling. As a rule licenses are issued by the higher controlling organizationsof the sector (ministry or committee) or authorized structure. For example, licenses for tourism companies serving foreign tourists are issued by the ministry of economy and trade. The license fee is established by the government or higher regulating body for relevant economy sector. Licensing is also used to ensure more effective and sustainable use of natural resources. Licensing is required to perform exploration works, mining or underground structures which are not regarded as mine works. Law of ecological expertise and Regulation on Commission on ecological expertise and Commission on chemical safety provide the system of registration of chemical and biological chemicals and other substances and compounds which are offered for initial use or import to Tajikistan. These substances or compounds must be subjected to the state testing in the laboratories and field testing to assess their biological, toxicological and ecological parameters. Should the results turn up positive the substances must be registered by the commission and included in the list of chemical substances allowed for use. Permits are designed to ensure sustainable nature use. There 2 types of permits: for the use of natural resourcesand for discharges and dumps. Permitfor pollutants discharge I s issued by the relevant inspection (state water or air inspection) of local EPCs and municipal structures who discharge by- products. The permits allow for discharges of certain quantity of pollutant (gas, liquid, hard waste). They are issued as a rule for 1 year where the permissible allowable 112 Key environmental Key legislativelpolitical instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement concentration i s indicated, the permissible volume of pollutant and allowed pollutants. Ecological norms and standards for pollution are established for air pollution, noise, vibration, magnetic fields and other physical factors and traces of biologically dangerous chemicalsor microbes in food products. Excess of the set limits leads to administrative sanctions. Several ministries define ecological quality standards each for own competence. Allowable levels o f noise, for example, vibration and magnetic fields are establishedby the ministry of health. Use of natural resources bPriorities defined in the National development There developed a system to assist strategy and Poverty reduction is the main task for low-income families to make the government. .However. taking into account the monthly payments for gas and size of agricultural sector, its environmental impact electricity (decree on the terms of and natural resources, close relations to the life subsidies to low income families conditions and povert) some urgent measures in this and individuals entitled for sector are advised. subsidies iaw Constitution and raise bNational Report on Sustainable Development of tariffs for gas and electricity as RIO +IO The Report \+as prepared to the Global adopted by the Government in summit on sustainable development in Johannesburg March 2003). The system of social in 2002 calling for a number of political actions which support was improved through the correspond \rith actions as defined in the povert) program of cash subsidies for reduction strateg).. In particular. it voices to protect children from low income families, SMEs and private business as employment alternatiies increased pensions and budget in agriculture, calls for further reforming of salaries. The government agricultural sector. in particular, privatization and established the mechanisms of farms development. financial support to families bIn March 2004 the government adopted Program residing in mountain areas and for economic development until 2015. The program migrants from the territories expects poverty reduction as the prerequisite for suffering from natural disasters. Yet sustainable economic development. It underlines the these migration schemes encounter importance to creating employment opportunities, problems due to inadequate raising pensions and salaries for state employees, financing and land plots allocation, professional education, system of social support, infrastructure and water supply. increasing of minimal salaries, social work, state Amendments introduced in 2002 regulation of hbUMWbH0h pa6oTt.i. 06eCne~HMH into the Law on migration are npaBMTe.lbCTBeHHOr0 per)nHpOBaHMR BHeUlHMX aimed at labor migration regulation rp) Aoebix wrpauMti, 60pb6bl c KoppynuMeA Mr to guarantee the rights of migrants migration flows, regulation of shadow economy. The by introducing licensing of the program calls for reforms in agriculture. agencies and organizations .In 2002 the Government adopted State recruiting Tajik labor force to work Employment Program and Pogram to Support abroad. Employment for 2003-2005. Implementation of the Ministry of agriculture is primarily two programs includes de\elopment and improvement responsible for agricultural policy, 3 f the system to advertise vacancies and support the but due to the continued ;)stem of microfinancing. privatization its role is decreasing. .State Ecological Program for 1998 - 2008 underlines importance of land recultivation, anti- Different R&D institutes of the :rosion activities and improved melioration. The land NAS and Academy of Agricultural Jse is one of the priorities for the State committee on sciences retain significant potential Ewironment Protection and Forestry. for scientific works. Same as in the b The LK Convention on Desertification: in 2001 former Soviet republics due to the 113 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing - - sectors permits, approvals, inspection and law enforcement there was adopted the National Program against lack of financing the system of desertification. scientific research works is .Law on Environment Protection of 1993 contains underfinanced. The soil research several articles on agriculture. They regulate use of institute and institute of pesticides and herbicides, use of biological and hydrotechnics and melioration are chemical substances, soil pollution and contamination the leading research institutions on of food stuffs, rational land use and protection from such important issues as soil and contamination from cattle farms. irrigation. .According to the Constitution all the land is the The skills upgrading center state property and is not subject for sale. The Land (training center) of the World Bank Code is the main law regulating land use including its offers trainings for farmers, local management and taxation. administrators and specialists. In b3Land Code of 2000 includes mechanisms which 1997 was established national make it possible to select permits for farmers for land farmers network. The association use including in the situations when the land use leads includes almost 30 000 members to land degradation. who are using more than a half of .Law on land Management of 2001 obligates total farmland. Its main idea is to authorities to map and monitor land quality including support right of the newly formed land contamination, erosion and water logging. farms. .Law of 2002 on Dehkhan (farm) households Farmers do not pay much attention defines the privatization process in agriculture. It also to ecological aspects despite set forth 3 forms of private farms: individual, family erosion is the direct threat to farm and cooperativeor partnershipfarms. The shareholders production. Because of the day-to- of the former state farms decide on their meetings day difficulties farmers may not which of the best forms of ownership to choose. This always apply their knowledge. In decisions must be approved by the local authority. the absence of alternative sources .Water Code set forth the basis to establish water ofenergy most likely that even anti- users associations (WUAs). erosion forests will be destroyed. .Law on Ecological expertise of 2003 and Decree In addition to that lack of qualified to establish Commission on Chemical Safety of staff and information seriously 2003 set forth rudimentary legal frames to register and impedes safe agricultural practice use pesticidesand other chemicals. development. Few farmers are duly educated or have access to consultation services despite the efforts by the government and donors. The FA0 projects and other bilateral donor projects also focus on better information and services for farmers. Natural resources protection The frames of the emironmental latv in Tajikistan A number of legislative acts primarily consist of the sub-law issued by arious \ establish responsibility for violation ministries and committees (Committee on of environmental law which is En\ ironment Protection at large). Besides, during the observed by several state organs. recent past Tajikistan has ratified se\ era1 international In particular the Administrative contentions and the) Liere included in its national Code of 1998 expects legislation. administrative responsibility for b Lati onen\ironment protectionof 1993 isthe organizations, their staff and frame ecological lati. It Has amended in 1996 to individuals for violations of the specif) jurisdiction arious state structures in negligent land use and violations of en\ ironment protection - the government, the by-then rules of water use or water Ministq of Environment and local majilis. protection or violation of state Amendments of 2002 are mainly about ecological ecological expertise. There are expertise in the protectedareas and more precise many organs authorized to observe definition of environmental rights for general public. administrative compliance for The law expects that ecological polic) of Tajikistan violations of certain types of must provideecological priorities based on scientific ecological rules. So, administrative principles ofcohesioneconomic and other activity sanctions for ecological violations 114 Key environmental Key legislative/politicaI instruments Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement which impacts environment and sustainable may be imposed on by development, Also individual rights for healthy administrative commissions of environment must be observed. The law is designed to hukumats, courts, Committee manage interrelationsbetween nature and society in inspectors, vet inspectors of the such a way to ensure interestsof the both. Ministry of agriculture, committee on land use, geodetics and The law defines due legal principles, protected units, mapping. Their jurisdiction to limits of jurisdiction and the role of the government, investigate certain types of Environmental Committee, local authorities, public violations and enforcement is organizations and general public. More importantly, explained inthe Code. the Law provides measures to ensure rights of society The most frequent administrative and individual to safe environment. The law requires punishment is the fine of up I O to adopting joint system of ecological expertise and minimal monthly salaries for EIA during decision-making. Moreover, it also set individuals or up to 15 minimal forth the frames for ecological standards. The law also salaries for employees of defines emergencies and natural disasters and organizations. Problems of prescribes the order of actions to be taken, describes ecological law arise due to that responsibilities of authorities to mitigate the impact, environment protection organs are and responsibility of individuals and organizations limited in their resourcesto perform found guilty in damaging environment or otherwise systematic inspections. As a rule, it violated the law. takes 1 year until inspectors will The law set forth several types of control to comply again come visiting to check if the with environmental law: state control, ministerial last year prescription was repaired control, control at the level of enterprise, and public only during the second inspection control. . the inspector may actually impose ,Law of 2002 on Protected Territories provides fine if the former prescription was priorities for protected areas over industrial and social- ignored. A bit more time is needed economic interests. But it also positively allows to use to obtain permit form industrial protected areas provided scholars concluded that court against a business to levy the certain type of activity satisfies economic interests charge. Even despite quite fast with no harm to environment. work the court hearing may begin The other environmental laws are: within several months. The .Quality of air Committee does not pay the Law on atmospheric air protection obligatory state duty for court Law on hydrometeorology process. .Mineral resources A committee may suspend a Law on mineral resources business operation which violates bWater environmental law. Prokuratura and Water Code police may investigate ecological .Land management crimes and may play significant Landcode role by applying environmental Law on land management law. Authorities of the Committee Law on land value assessment in the sphere of administrative bForests violations investigation and Forest code imposing fines is not related to the .Flora and fauna authorities of prokuratura or militia. Law on flora and fauna use and protection In fact, they cooperate to some Law on flora protection extent because local EPCs forward Law on plantsquarantine such cases to militia and bHealth and safety prokuratura. If the inspectors are successful to prove the fact which Law on sanitary and epidemiological safety can be classified as a crime. Law on vet medicine The Criminal Code of 1998 covers La won iodinized salt crimes against nature and Law on quality and safe food products environment and ecological safety Law on industrial safety of hazardous such as safety at work, pouching, industriesand sites land pollution, misuse of subsoil Law on radiological safety resources and their protection. The bWastes management and chemicals maximal fine is up to 2000 minimal 115 Key environmental Key legislativelpolitical instruments ~~~ Authorities in charge of issuing sectors permits, approvals, inspection and law enforcement Law on productionwastes and consumption monthly salaries, and maximal Law on productionand safe pesticidesand imprisonment is up to 8 years. ecological program until 1998 - 2008 was agrochemicals management .Sate adopted by the government in 1997 with the purpose to define country development vector during transition period. The program underlines importance of continued healthy environment for successful economic development and dependence of human survival on the biosphere sustainability. The program calls for balance between economic interests and ecosystem's bearing capacity. Main objectives are to employ all parts of society (government, business circles, NGOs, general public) to protect and improve environment and to educate people of the importance of rational use of resources and best ways to doing it. The program provides a detailed description of the environment and its ecological problems, set forth a number of types of activities necessary to recover and sustain ecological balance or remediation of certain ecological problem. It also contains urgent practical measures, such as: a Land erosion prevention; a Land allocation for high production crops; a Re-forestation, expansionof protectedareas; a Restoration of high air quality, water and other resources; 0 Encouragement of local industry to use local raw materials a Creduction of energy consumption and introductionofenergy-savingtechnologies. 116 Annex 3. Methodologyfor Health Cost Estimation 1.ParticulateMatter Pollution Research in the United States in the 1990s and most recently by Pope et a1 (2002) provides strong evidence that it is even smaller particulates (PM 2.5) that have the largest health effects. The gaseous pollutants (S02, NOx, CO, and ozone) are generally not thought to be as damaging as fine particulates. However, SO2 and NOx may have important health consequences because they can react with other substances inthe atmosphereto form particulates. Dose Response Coefficients Inorder to estimate the health impacts, we have usedrecent work by Ostro (1994), Abbey et a1 (1995) and Pope et al (2002). Ostro (1994) and Abbey et a1 (1995) have used dose response coefficients to analyze the morbidity effects and provides estimates of dose response of P M (PM10) to chronic bronchitis. A survey o f the current status of worldwide research shows that the risk ratios or dose response Coefficients from Pope et a1 (2002) are likely to be the best available evidence of the mortality effects of ambient particulate pollution (PM 2.5). These coefficients were applied by the WHO in the World Health Report 2002, which provided a global estimate of the health effects of environmental risk factors. The mortality and morbidity coefficients from the above studies are presentedinTable A.3.1. ITableHealth A.3.1: Urban Air Pollution Dose-Response Coefficients Annual Effect I Dose-response I Per 1 ug/m3annual I Source: Pope et a1 (2002) for the mortality coefficient. Ostro (1994) and Abbey et al (1995) for the morbidity coefficients. Pope et a1 (2002) provide the most comprehensive and detailed research study to date on the relationship between air pollution and mortality. The study confirms and strengthens the evidence of the long-term mortality effects of particulate pollution found by Pope et a1 (1995) and Dockery et a1 (1993). Pope et a1 (2002) utilized ambient air quality data from metropolitan areas across the United States for the two periods 1979-83 and 1999-2000, and information on certified causes of mortality of adults from the American Cancer Society (ACS) database over a period of 16 years. The ACS database has individual specific information for more than 1 million adults that were obtainedthrough questionnaires. The study could therefore control for a large set of factors that may also affect variations in mortality rates across metropolitan areas, 117 such as age, smoking behavior, education, marital status, body weight, occupational risk factors, and dietary indices. The study found a statistically significant relationship between levels o f P M 2.5 and mortality rates, controlling for all the factors discussed above. All-cause mortality was found to increase by 4-6 % for every 10 ug/m3increase inP M 2.5. The increase in cardiopulmonary mortality was 6-9 %, and 8-14 % for lung cancer. No statistically significant relationship was found between levels o f P M 2.5 and all other causes o f mortality (Table A.3.2). The share o f cardiopulmonary and lung cancer deaths in total mortality varies sometimes substantially across countries. It may therefore reasonably be expected that the risk ratios for cardiopulmonary and lung cancer mortality provide more reliable estimates o f mortality from P M 2.5 than the risk ratio for all-cause mortality when the risk ratios are applied to countries other than the United States. The former two risk ratios are therefore used in this report. The mortality coefficient in Table A.3.1 i s a combination o f the cardiopulmonary and lung cancer mortality risk ratios inTable A.3.2. Reproduced from Pope et a1(2002). In order to use the mortality coefficients in Table 3.1.2 to estimate mortality from urban air pollution in the Tajik cities, baseline data on total annual cardiopulmonary and lung cancer deaths are required. For Dushanbe and Khujand, data on estimates o f total urban death were obtained from the UNstatistical data (5.6 per 1000)27.Inaddition to the above data, estimates o f mortality due to cardiopulmonary and lung cancer from the Ministry o f Health combined with WHO data by the cause o f deaths were also used. Data from the above two sources showed an average rate o f 56 % o f total deaths due to cardiopulmonary and lung cancer. Inorder to estimate the mortality effects, a threshold level of 7.5 ug/m3o fP M2.5 has beenapplied, below which it is assumed there are no mortality effects. The World Health Report 2002 (WHO) also used this procedure. No threshold level has beenapplied for morbidity. An estimate of annual incidence o f Chronic Bronchitis (CB) is requiredinorder to apply the CB coefficient in Table A.3.1. In the absence o f data on CB incidence for Tajikistan, we have used the rate from WHO (2001) and Shibuya et a1 (2001) for the Euro B region of WHO of which Tajikistan is part of. It has therefore not beenpossible to use city specific CB incidence rates. Other morbidity health endpoints considered are hospital admissions o f patients with respiratory problems, emergency room visits (or hospital out-patient visits), restricted activity days, lower respiratory infections in children, and respiratory symptoms. The coefficients are expressed as 27Deaths and crude death rates, by urbadrural residence: 1999 - 2003 (UN Statistical Division, 2007) 118 cases per 100,000 in the absence o f incidence data for Tajikistan, though it would be preferable to have incidence data and use coefficients that reflect %age change in incidence. Increases in asthma attacks among asthmatics have also been related to air pollution in many studies. But such data are on the %age o f the population that is asthmatic and frequencies o f asthma attacks are not readily available for Tajikistan. The health effects o f air pollution are converted to disability adjusted life years (DALYs) to facilitate a comparison to health effects from other environmental risk factors. DALYs per 10 thousand cases o f various health end-points are presentedinTable A.3.3. ITable A3.3: DALYs for HealthEffects Health Effect 1DALYSlost per 10,ooo 1 cases Mortality 75,000 Chronic Bronchitis (adults) 22,000 Resoiratorvhosoitaladmissions 160 EmergencyRoom visits 45 Restrictedactivity days (adults) 3 Lower respiratoryillness in children 65 Respiratorysymptoms (adults) 0.75 Table A.3.4 presents the disability weights and average duration o f illness used in this report to calculate the DALYs as presented in Table A.3.5. The weights for Lower Respiratory Illness (LRI) and Chronic Bronchitis (CB) are average disability weights.28 Disability weights for the other morbidity end-points are not readily available, and are estimates by Larsen (2004a) based on weights for other comparable illnesses.29 Average duration o f CB i s estimated based on age ' distribution in Tajikistan and age-specific CB incidence in Shibuya et a1 (2001). Years lost to premature mortality from air pollution is estimated from age-specific mortality data for cardiopulmonary and lung cancer deaths, and have been discounted at 3 % per year. Average duration o f illness for the other health end-points i s from Larsen (2004a). Table A.3.4: Calculationof DALYsPer Case of HealthEffects I Disabilitv Weight I Average Duration of Illness I Mortality 1.o (7.5 years lost) Lower respiratoryIllness- Children 0.28 10 days RespiratorySymptoms- Adults 0.05 0.5 days RestrictedActivity Days- Adults 0.1 1 day Emergency Room Visits 0.30 5 days HospitalAdmissions 0.40 14 days* Chronic Bronchitis 0.2 20 years EstimatedHealthImpacts 28 See: http:l/www.dct12.ordpubsIGBD 29The disability weight for mortality is 1.O. 119 The total annual costs were computed from the total cost per case (Table A.3.5) and the number o f estimated cases. For morbidity the cost o f illness alone has been estimated. In the case o f respiratory symptoms, the estimated cost per occurrence i s zero and hence the total annual estimated cost due to respiratory symptoms inTable A.3.5 i s zero. The baseline data that were used to estimate the cost per case of illness is presented in Table' A.3.6. The opportunity cost o f time lost because o f illness for adults i s estimated based on urban wages. The average urban wage in Tajikistan i s about 120 TJS per month. In the case of both income earning and non-income earning individuals, 75 % o f the average urban wage rate has been imputed as the opportunity cost o f time lost due to illness. In the case o f non-income earning individuals, the above rate i s justified as most o f them provide a household function that has a value and they could as well choose to join the paid labor force. Health categories Cost-of-Illness Per Case (TJS) Chronic bronchitis 800 Hospital admissions 345 Emergencyroom visits/Outpatient hospital visits 40 Restrictedactivity days (adults) 1 Lower respiratory illness in children 25 Respiratorysymptoms(adults) 0 There is very little information about the frequency o f doctor visits, emergency visits and hospitalization for CB patients in developing countries. However, Schulman et a1 (2001) and Niederman et a1 (1999) provide some information on frequency o f doctor visits, emergency visits and hospitalization for CB patients inUnited States and Europe.30 Inthe absence o f specific data on Tajikistan, results from the above studies have been applied to Tajikistan. Estimated lost workdays per year are based on frequency o f estimated medical treatment plus an additional 7 days for each hospitalization and one extra day for each doctor and emergency visits. These days are added together to reflect the total time needed for recovery from illness. To estimate the cost o f a new case o f CB, the medical cost and value o f time losses have been discounted over 20 year duration o f illness. An annual real increase o f 2 % in medical cost and value o f time lost has been applied to reflect an average expected increase in annual labor productivity and real wages. The costs are discounted at 3 % per year, a rate commonly applied by WHO for health effects. Table A.3.6: Baselinedata for estimation of cost of health imDactdue to air Dollution 30CB is a major componentof COPD which is the focus of the referencedstudies. 120 Average length of hospitalization(days) 10 Niedermanet al(l999) Average numberof doctor visits per CB patient per year 1 % of CB patients with an emergency doctorhospital 15% outpatient visit per year Estimated lost work days (including household work days) 2.6 Estimated based on frequency of per year per CB patient doctor visits, emergency visits, and hospitalization Annual real increases in economic cost of health services and 2Yo Estimate Annual discount rate 3% I IIApplied by WHO for health effects 121 2. Lead Exposure We do not have data on the concentration o f lead in the atmosphere. However, according to experts there the lead concentration exceeds safe limits and results in substantial health impacts. There are also significant accumulations o f lead insoil and water already that could have impacts on health. The figure A.3.1 presentsthe major sources for lead exposure. The main indicator o f lead exposure effect is the level o f lead in the blood. WHO (Fewtrell et al, 2003) recommends that lead concentration in blood (BLL) i s the best indicator to analyze the health impacts o f exposure to lead pollution as lead from different exposure pathways accumulates in blood. Table A.3.7 presents a summary o f health effects o f lead. Figure A.3.1: Lead ExposurePathways Distalcauses Proximalcauses Physiologicaland pathophysiological Outcome causes ' Healtheffeds.e.g. ' g- incseasedbload ' Dressureand __+ cardlavascular disease mentalretardabon j --anaemid -_, 1 - decreasedrenal Leadm candlead- s function. 11 L I ;andtraditional Source. Fewtrell et al, 2003 122 Table A.3.7: Health Effects of Lead Outcome Bloodlead Relationship threshold" tww Children Adults IQ reductionb 5 NO Linear relationshipbetween 5- 20 pgJdi BPbC(loss of 1.3 IQ points per 5 p@dl BPb); loss of 3.5 IQ points above 20 pg/dI. Increasedsystolic blood ND 5 Linear relationship assumed Pressured between 5-20 gg/dl (increase of 1.25 mmHg per increase of 5 pgidl BPbfor males, and 0.8 mmHg for females); above 20 ggJdl, an increase of 3.75 mmHg for males, and 2.4 mmHgfor females. Gastrointestinaleffects 60 ND 20% of children are affected above these ratese. Anaemia 70 80 20% of people are affected above these ratese. a Thresholds for gastrointestinal effects and anaemia are levels "at risk", as defined by ATSDR (1999). The disease burden is always estimated for one particular year and the effects of previous exposures are not accounted for in the year of assessment As a result. onty chibdren aged 0-1 year old were considered In the calculations, since the effects of lead on previous cohortswere consideredin previousyears. 3Pb:blood lead level(in pg1dl). Adults aged 20-79 years only. 3ased on Schwa- et ai. (1990); see section4.1. NONa documentedeffects or insufficientevidence. Source: Fewtrell et al, 2003 We do not have data on lead levels in blood in Tajikistan. So data from countries in NIS with same specifications for lead in gasoline are used. They are Uzbekistan(Semenov& Mutalova, 2004); and Kazakhstan (Kaul, 2000)), in Central Asia and Russia (Rubin et al, 2002). The above studies showedthat these countries with identical specifications of gasoline have elevatedlevels of lead in blood among children (see studies mentioned above). The study in Russia further identifiedleadedgasolineas the mainsource o f leadexposure, ifstationaryindustrial sources are not locatedinthe city. The table belowpresents major results o fthe studies: 123 Blood lead, mean (ug/dl) Year of study Sample size Study 10-20 2002 23 Semenov& Mutalova, 2004 4-7 1999 475 Kaul et al, 2000 The above studies showed that inRussia when 23 % of childrenhad elevated lead blood levels, whereas only 6 % of children in Uzbekistan had this condition. In order to estimate the cost of healtheffects due to lead pollution, the effects on childreninmajor cities with population above 100,000 inhabitants alone are considered. In the absence of data on lead blood level among adults no analysis could be conducted for lead exposure in this population group. There are about 0.8 million people inthese cities and about 100thousandchildrenunder 5 years old. Inthe case of younger children lead can cause significant neurological deficit, characterized by reduction inIQ, as it i s indicatedintable A.3.7. Since there were several studies available (Table A.3.8), a single weighted mean level of lead in blood (BLL) was generatedby multiplyingthe sample sizes by the natural logarithm of the mean BLL for different samples. Inorder to quantify the damages from lead exposure, the log-normal distribution of BLL inthe population was obtained using the function LOGNORMDIST inthe Excel spreadsheet provided by WHO and the results are presentedin Table 3.2.4. 1- LOGNORMDIST gives the proportion of the population above a given interval of BLL. This step was repeated for each BLL interval above a given value (5 ug/dL, 10 ug/dL, 15 ug/dL, 20 ug/dL, >20 ug/dL, 260 ug/dL, 270 ug/dL, 280 ug/dL). As in Fewtrell et al, 2003 it is assumed that IQ losses take place during the first 5 years of a child's life. Table A.3.9: PoDulationAt RiskWith DifferentBLL Total Age groups population 0 to 4 1Pooulation (1000s) 820.00 98.40 YOinthis age group 1100% 12% BPb urbans 116.6 , I " Total population share with BLL 10-20ug/dl 0.21 Total population share with BLL 10-15ug/dl 0.14 1Total oooulation share with BLL 15-20uddl 0.07 Total population share with BLL >20ug/dl 1 0.13 As presented in Fewtrell et al., 2003 the loss of IQ points is quantified by assuming a linear dose-response relationship and a loss of 1.3 IQ points per 5ug/dL (Figure A.3.2). 124 FigureA.3.2: IQ Loss By BLL Lmear d0beiebwm.e reU!unshipassumed 5 10 15 r) 7 s 125 175 Bloodlead beJ(nwan value,tddl) 0 0 8 k c d ~ ~ m wIo 1 E W I W ~ ~ N B I Z *BasedmdatabySchwaRz(i994) Source: Fewtrell et al. 2003 The next step is to convert IQ loss into mild mental retardation(MMR). We estimate incidence of MMR per 1000 children in the age range 0-4 years old. For this the number of childrenwith IG loss in each BLL interval estimatedabove is multiplied by the %age of the populationin the IQ interval.MMR occurs when the IQbelow 70 points but above 50 points (Fewtrell L. et al, i s 2003). Followingthe assumptionof normaldistributionof IQ across the population, it is possible to estimate the population in IQ intervals that would be at risk of MMR, as presented at the FigureA.3.3 below: FigureA.3.3: Shift To MMRAs A ResultOf Lead InducedIQ Loss Nanaal cun'e of 73 5 1Q score Source: Fewtrell L.,et al, 2003 The normalpopulationis distributed within the specifiedIQ intervalsas indicatedinTable A.3.10. As we mentionedbefore, the populationwith IQ of 70 pts is inthe risk of having level MMR from leadexposure: 125 I Q band I Q interval Population inI Q interval (%) IQ (1) 70-70.65 0.24 IQ (2) 70-71.95 0.8 IQ (3) 70-73.25 1.45 IQ (4) 70-73.50 1.59 The estimated population at risk o f MMR is summed for different I Q bands (table A.3.10) and then multiplied by the regional MMR adjustment ratio, which is 1.53 for Euro B, the WHO subregion which includes Tajikistan. Estimated incidence o f MMR due to lead exposure in the age group 0-4 years old i s at 119 annual cases. Studies have found an average loss o f 1.3 IQ points per 5 ug/dl BLL in children. Fewtrell et a1 (2003) apply a lower threshold o f 5 ug/dl BLL below which no I Q loss occurs, and an upper threshold o f 20 ug/dl BLL above which no further IQ losses are expected (Le., a loss of about 3.5 IQ points for BLL > 20 ug/dl). For some children an I Q loss will cause Mild Mental Retardation (MMR),occurring at an IQ of 50-70 points. Thus children with an IQ of 70.5-73.5 points are at risk of MMR from lead exposure. It is assumedthat IQ lossestakes place duringthe first 5 years o f a child's life. 126 3. Inadeauate Water SuDply, SanitationAnd Hygiene Esrey et a1 (1991) provides a comprehensive review o f studies documenting this relationship for diseases such as schistosomiasis (bilharzia), intestinal worms, diarrhea, etc. Fewtrell and Colford (2004) provide a meta-analysis o f studies o f water supply, sanitation and hygiene that updates the findings on diarrheal illness by Esrey et a1 (1991). Water, sanitation and hygiene factors also influence child mortality. Esrey et a1 (1991) find in their review o f studies that the median reduction in child mortality from improved water and sanitation i s 55 %. Shi (1999) provides econometric estimates o f the impact o f potable water and sewerage connection on child mortality using a data set for about 90 cities around the world. Literacy and education level are also found to be important determinants o f parental protection o f child health against environmental risk factors. Esrey and Habicht (1988) reports from a study in Malaysia that maternal literacy reduces child mortality by about 50 % in the absence o f adequate sanitation, but only by 5 % in the presence o f good sanitation facilities. Literacy i s also found to reduce child mortality by 40 % ifpipedwater i s present, suggesting that literate mothers take better advantage o f water availability for hygiene purposes to protect child health. Findings from the Demographic and Health Surveys from around further confirm the role o f literacy in child mortality reduction. Rutstein (2000) provides a multivariate regression analysis o f infant and child mortality in developing countries using Demographic and Health Survey data from 56 countries from 1986-98. The study finds a significant relationship between infant and child mortality rates and piped water supply, flush toilet, maternal education, access to electricity, medical services, Oral Rehydration Therapy (ORT), vaccination, dirt floor in household dwelling, fertility rates, and malnutrition. Similarly, Larsen (2003) provides a regression analysis o f child mortality using national data for the year 2000 from 84 developing countries representing 95 % o f the total population in the developing world. A statistically significant relationship between child mortality and access to improved water supply, safe sanitation, and female literacy i s confirmed. Baseline health data for estimating the health impacts o f inadequate water supply, sanitation and hygiene are presented in Table A.3.11, Data from Medical Statistics Centre o f the Health Ministry indicates that 12-14 % of child mortality was due to intestinaldiseases in2004. This is usedas a range for diarrheal mortality estimation. Inthe case o fdiarrheal morbidity, it is very difficult or practically impossibleto identify all cases o f diarrhea as a substantial share o f cases i s not treated or does not require treatment at health facilities, and therefore are never recorded. Further, those cases that are treated by private doctors or clinics are often not reported to public health authorities. Household surveys therefore provide the most reliable indicator o f total cases o f diarrheal illness. Most household surveys, however, contain only information on diarrheal illness in children. Moreover, the surveys only reflect diarrheal prevalence at the time o f the survey. As there i s often highvariation in diarrheal prevalence across seasons o f the year, extrapolation to an annual average will result in either an over- or underestimate o f total annual cases and correcting this bias i s often difficult without knowledge o f seasonalvariations. MICS 2005 also provides data on diarrheal prevalence in children under the age o f five years. It reports a diarrheal prevalence (preceding two weeks) rate o f 18.6 % in urban areas and 21.5 % in 127 rural areas. This rate is used to estimate the number o f annual cases per child under-5, and then the total annual cases inall children under-5. The procedure applied is to multiply the two-week prevalence rate by 52/2.5 to arrive at an approximation o f the number o f annual cases o f per child. The prevalence rate i s not multipliedby 26 two-week periods (Le. 52/2), but multipliedby 52/2.5 for the following reason: The average duration o f diarrheal illness i s assumed to be 3-4 days. This implies that the two-week prevalence captures a quarter o f the diarrheal prevalence in the week prior to and a quarter inthe week after the two-week prevalence period. Since MICS does not (nor does any other household survey inTajikistan) provide information on diarrheal illness in the population above 5 years o f age, estimations from other countries were used. The study therefore used data on cases o f diarrheal illness for several years based on reported information from health care facilities (Larsen, 2004a,b). This database provides an indication o f the annual incidence o f diarrhea per child relative to annual incidence for the rest o f the population. An analysis o f the database suggests that diarrheal incidence in the population above 5 years o f age is 1/5tho f incidence in children under 5 years. It should be noted however that the database contains information on cases o f diarrhea treated at health facilities. Ingeneral, the %age o f cases o f diarrhea that are treated at health facilities i s higher among young children than older children and adults. Sometimes diarrheal illness requires hospitalization. However, there are no available centralized records in Tajikistan that provide data on the annual number o f diarrheal hospitalizations. So the number o f hospital admissions due to diarrhea was estimated using information on hospitalizationrates provided inBaschieri and Falkingham (2007). Hospitalization rate o f 0.2 per cent was applied to all cases o f diarrhea estimated from the MICS 2000 to equal the figure on total number o f hospitalizations due to intestinal diseases. Table A.3.11 also has DALYs per cases o f diarrheal illness, which are used to estimate the number of DALYs lost because of inadequate water supply, sanitation and hygiene. The disability weight for diarrheal morbidity i s 0.119 for children under-5 and 0.086 for the rest o f the population, and the duration o f illness is assumedto be the same (Le., 3-4 days). However, the DALYsper 100 thousand cases o f diarrheal illness are much higher for the populationover 5 years o f age. This i s because DALY calculations involve age weighting that attaches a low weight to young children and a higher weight to adults that corresponds to physical and mental development stages.31 For diarrheal child mortality the number o f DALYs lost is 34. This reflects an annual discount rate o f 3 % o f life years lost. Urban Rural Source: Under-5 child mortalityrate in 2004 70 83 MICS2005 (per 1000 live births) Diarrheal 2-week Prevalence in 18.6% 2 1.5% MICS 2000 Children under 5 years Estimatedannual diarrheal cases per child 3.9 4.5 Estimatedfrom MICS 2000 under- 5 years Estimatedannual diarrheal cases 0.8 0.9 Estimated from a combination of 31It should be notedthat some researcherselect not to use age weighting, or reports DALYs with and without age weighting. 128 per person(> 5 years) MICS 2000 and international experience % of diarrheal cases attributable to 90% 90% WHO (2002b) inadequatewater supply, sanitationand hygiene DALYs per 100thousandcases of diarrhea 40 40 Estimated from WHO tables in childrenunder- 5 using age weighting and an DALYs per 100thousandcases of diarrhea 130 130 average duration of illness of 4 in persons > 5 years days, and age weighting and 3 % DALYs per case of diarrheal mortality 34 34 discount rate for mortality in childrenunder- 5 Baseline data used for the estimation o f the cost o f morbidity are presentedin Table A.3.12. % o f diarrheal cases in the age group older than 5 years treated at medical facilities i s estimated from % o f treated cases among children (MICS 2000) and international experience (Larsen 2004a,b). Cost o f medical services reflects the cost o f estimated private health care (WHO- CHOICE). This i s a better indication o f the economic cost o f health services than public services that are subsidized in Tajikistan. The value o f time lost for adults is imputed based on urban and rural wages. The analysis used 75 % o f the urban and rural wages in Tajikistan as the imputed value for both income earning and non-income earning adults. It may be noted here that the non-income earning adults are engaged ina household function that has value and they also have an opportunity to join the paid labor force.32 o f diarrhea (TJS) providers, and health Average cost of ORS per diarrheal authorities case in children(TJS) 5 5 Average duration of diarrheal illness in days (childrenand adults) 4 4 Assumption Hours per day of care giving per case of diarrhea in children 2 2 Assumption Hours per day lost to illness per case of diarrhea in adults 2 2 Assumption Value of time for adults (care giving and ill adults) 75% o f urban and rural TJShour o,6 0.2 wages in Tajikistan 32Some may argue that the value oftime basedon wage rates should be adjusted by the unemploymentrateto reflectthe probability of obtainingpaidwork. 129 % of diarrheal cases attributable to 90% 90% (WHO 2002b) 130 4. Indoor Air Pollution There are two main steps inquantifying the health effects ofindoor air pollution. The first step is to estimate the number o f people or households exposed to pollution from solid fuels, and measure the extent o f pollution, or concentration. The second step i s to quantify the health impacts from the exposure based on epidemiological assessments. Once the health impacts are quantified, the value o f this damage can be estimated. We have used the MICS 2005 data on household use o f fuels for cooking. The data indicate that around 8 % o f urban and 49 % o f rural households usedfuel wood for cooking in2005. Desai et a1 (2004) provides a review o f research studies around the world that have assessed the magnitude o f health effects o f indoor air pollution from solid fuels. The odds ratios for ARI and COPD are presentedin Table 5.1. The odds ratios representthe risk o f illness for those who are exposed to indoor air pollution compared to the risk for those who are not exposed. The exact odds ratio depends on several factors such as concentration level o f pollution in the indoor environment and the amount o f time individuals are exposed to the pollution. A range o f "low" to "high" ratios is therefore presented inTable 5.1 that reflects the review by Desai et a1(2004). Studies around the world have also found linkages betweenindoor air pollution from traditional fuels and increased prevalence o f tuberculosis and asthma. It i s also likely that indoor air pollution from such fuels can cause an increase in ischemic heart disease and other cardiopulmonary disorders. As discussed inthe section on urban air pollution, Pope et a1 (2002) and others have found that the largest effect o f urban fine particulate pollution on mortality i s for the cardiopulmonary disease group. As indoor smoke from traditional fuels is high in fine particulates, the effect on these diseases might be substantial. More research i s however required inorder to draw a definite conclusionabout the linkage and magnitude o feffect. The odds ratios inTable A.3.13 have inthis report been applied to young children under the age o f five years (for ARI) and adult females (for ARI and COPD) to estimate the increase in mortality and morbidity associated with indoor air pollution.33 It i s these population groups who suffer the most from indoor air pollution. This i s because they spend much more o f their time at home, and/or more time cooking than older children and adult males. Odds Ratios (OR: "Low" "High" Acute Respiratory Illness(ARI) 1.9 2.7 Chronic obstructive pulmonary disease (COPD) 2.3 4.8 To estimate the health effects o f indoor air pollution from the odds ratios in Table A.3.13, baseline data for ARI and COPD need to be established. These data are presented in Table 33 Although Desai et a1 (2004) present odd ratios for lung cancer, this effect o f pollution i s not estimated in this report. This is becausethe incidenceof lungcancer among ruralwomen is generally very low. The number of cases in ruralTajikistan associated with indoor air pollution is therefore likely to be minimal. 131 A.3.14, along with unit figures for disability adjusted life years (DALYs) lost to illness and mortality. Data on COPD mortality and especially incidence o f morbidity, according to international disease classifications, are not readily available for Tajikistan. Regional estimates from WHO (2001) and Shibuya et a1 (2001) for the Euro B region are therefore used.34 The national average o f two-week prevalence rate of ARI in children under 5 years from the MICS 2005 was used to estimate total annual cases of ARI in children under-5. The procedure applied i s to multiply the two-week prevalence rate by 52/3 to arrive at an approximation o f the annual cases o f ARI per child3'. The MICS does not (nor does any other household survey in Tajikistan) provide information on ARI inadults. So international evidence on annual incidence of ARI per child relative to annual incidence per adult (Larson, 2004a,b) was used. An analysis o f the database suggests that ARI incidence in population over 5 years i s about 1/5'h o f the incidence in children less than 5 years o f age. ARI mortality in children under 5 years i s 17-20 % o f total estimated child mortality (Health Ministry, UNICEF). Table 5.2 also presents DALY per cases o f ARI and COPD, which are used to estimate the number o f DALYs lost because of indoor air pollution. The disability weight for ARI morbidity is the same for children and adults (0.28), and the duration o f illness is also assumed to be the same (7 days). The DALYs per 100 thousand cases o f ARI i s however much higher for adults. This i s because DALY calculations involve age weighting that attaches a low weight to young children, and a higher weight to adults, that corresponds to physical and mental development stages.36 For ARI child mortality the number o f DALYs lost is 34. This reflects an annual discount rate o f 3 % o f life years lost. r Table A.3.14: Baseline Datafor EstimatingHealthImpactsof indoor air pollution I Baseline I Source: Urban Rural Female COPD mortality rate (% of 2.3% 2.3% WHO (2002) and Shibuyaet al(2001) total female deaths) Female COPD incidence rate (per 55 55 ARI 2-week Prevalence in Children I 22% 46% I MICS2005 under 5 years Estimated annual cases of ARI per 3.8 8 Estimatedfrom MICS 2005 child under 5 years Estimated annual cases of ARI per 0.8 1.6 Estimated from a combination o f adult female (> 30 years) internationaldata and MICS 2005 ARI mortality in children under 5 17-20% 17-20% Ministry of Health, UNICEF years (YOo fchild mortality) DALYs per 100 thousand cases of 165 165 ARI in children under 5 DALYs per 100 thousand cases of 700 700 Estimated from WHO tables ARI in female adults b 3 0 ) II I I 34 Tajikistan belongsto the Euro B region of WHO, which is one o fthree WHO regions in Europe. 35 A factor of 52/3 is applied for the following reason:The average duration of ARI is assumed to be about 7 days. This implies that the two-week prevalence captureshalf of the ARI prevalencein the week prior to and the week after the two-week prevalenceperiod. 36 It should be notedthat some researchers elect not to use age weighting,or reports DALYs with and without age weighting. 132 DALYs per case of ARI mortality in 34 34 children under 5 DALYs per case of COPD morbidity 2.25 2.25 in adult females DALYs per case of COPD mortality 6.8 6.8 in adult females DALYs lost per case of COPD morbidity and mortality is based on life-tables and age-specific incidence of onset of COPD reportedby Shibuyaet a1(2001) for the Euro B region. A disability weight of 0.2 has been applied to COPD m~rbidity.~'A discount rate of 3 % is applied to both COPD morbidity and mortality. EstimatedHealthImpacts Annual new cases of ARI and COPD morbidity and mortality (Di) from fuel wood smoke were estimatedfrom the following equation: where DiBis baseline cases of illness or mortality, i(estimated from the baseline data in Table 5.3), and PAR is given by: PAR =PP*(OR-1)/(PP*(OR-1)+1) (2) where PP is the %age of populationexposedto fuel wood smoke (8 % ofurbanand 49 % ofrural householdsaccordingto MICS 2006), and OR i s the odds ratios (or relative risk ratios) presented inTable 5.1. Treatment costs are estimatedbased on costs of healthcare services offered by the private sector as these are likely to better reflect the true economic costs. % of ARI cases in the age group older than 5 years treated at medical facilities is estimated from % of treated cases among children (MICS 2005) and the ratio of treated cases among children under-5 to treated cases amongthe populationabove 5 years of age. The latter ratio is from the international estimations discussedinthe BaselineHealthData section. The time lost inthe case of adults is valued at 75 % of average hourly wages. There is very little informationabout the frequency of doctor visits, emergencyvisits and hospitalizationfor COPD patients inthe developingcountries. Since such data are not available for Tajikistan, data derived from Schulmanet a1(2001) and Niedermanet a1 (1999) on United States and Europe are used in this study. Estimated lost workdays per year is based on frequency of estimated medical treatment, an additional 7 days for each hospitalization and one extra day for each doctor and emergencyvisit. These days are added to reflecttime neededfor recovery from illness. To estimate the cost of a new case of COPD, the medical cost and value of time losses are discounted over 20 year duration of illness. An annual real increase of 2 % in medicalcost and 37See: http://www.dcp2.org/pubs/GBD 133 value of time has been applied to reflect an average expected increase in annual labor productivity and real wages. The costs are then discounted at 3 % per year, a rate commonly usedby WHO for health effects. Baseline data used to estimate the cost of morbidity are presented in Table A.3.15. The treatment costs are based on costs of private sector health care services, as these are likely to better reflect economic cost. Cost of mortality is discussedbellow. Inorder to estimate the % of ARI cases inthe age group older than 5 years, treated at medical facilities, the % of treated cases among children obtained from MICS, 2005 are combined with international experience. The time lost due to illness in the case of adults i s valued at 75 % of average of hourly wage for urban and rural workers. The rationale for such valuation of time is discussed in the previous sections. Table A.3.15: Baselinedata for estimationcosts of healthimpactsfrom indoorair pollution Rural Urban Source % of ARI cases treated at medical facilities ,-....-.-n<5 years) 33.7% 55.1% MICS 2005 %age of cases with use of pharmacy (children <5 vears) 34% 5 5% MICS 2005 Cost of medicines for treatment of acute respiratory illness(population< 5 years) (TJS) 25 25 Per consultations with pharmacies YO of ARI cases treated at medical facilities (females > 30 years) 30% 49% Estimated from a combination of the MICS 2005 and internationalexperience YOo f COPD patients being hospitalizedper year 1.5 1.5 Assumption based on Schulman et al YO of COPD patients with an emergency doctorihospitaloutpatient visits per year 15 15 (2001)and Niedermanet al(l999) Average number o f doctor visits per COPD patient per year 1 Estimated based on frequency of doctor Estimated lost workdays (including household 2.6 2.6 visits, emergency visits, and medical service providers, 'and health I Average duration or AKI in days (cniidren and adults) 7 7 Assumption Hours per day of care giving per case of ARI in 2 2 Assumption I I children Hours per day lost to illness per case of ARI in adults Assumption Value of time for adults (care giving and ill adults)- TJSihour 0.2 0.6 75% of wages in Tajikistan Average length of hospitalization for COPD (daw) 10 Larsen(2004b) 38These costs include charges for a bed and costs of medicines includingthe what the government incurs for these services 134 6. Valuation of MortaliQ Two distinct methods o f valuation o f mortality are commonly used to estimate the social cost o f premature death: the Human Capital Approach (HCA) and the Value o f Statistical Life (VSL). Although both the approaches are being used, the VSL approach i s more common in the last couple o f decades. Inthis report, the H C A has been applied as a lower bound and VSL approach as the higher bound in estimating the cost o f adult mortality. However in the case o f child mortality, the H C A has beenused. HumanCapitalApproach The HCA is based on the economic contribution o f an individual to society over the lifetime o f the individual and death results inan economic loss that is approximated by the loss of all future income o f the individual. Future income i s discounted to reflect its value at the time o f death. The discount rate commonly applied is the rate o f time preference. Thus the social cost o f mortality, according to the HCA, i s the discounted future income o f an individual at the time o f death. Ifthe risk o f death, or mortality risk, i s evenly distributed across income groups, average expected future income i s applied to calculate the social cost o f death. Mathematically, the present value o f fiiture income is expressed as follows: PV, (I)= cI,(1 r=n +g)' /(1+r)l (1) i=k where PVo (I)s present value of future income (I) year 0 (year o f death), g is annual growth i in inreal income, and r is the discount rate (rate of time preference). As can be seen from (l), the equation allows for income to start from year k, and ending inyear n. Inthe case o f children, we may have i (20, 65}, assuming the lifetime income on average starts at age 20 and ends at E retirement at age 65. An annual growth of real income and the discount rate used inthis study are 2 % and 3 % respectively. Several important issues are often raised regarding the HCA. The first issue is regarding the application o f this valuation approach to individuals who do not participate in the economic activities, Le., to individuals, such as the elderly, family members taking care o f the home, and children who do not earn an income. One may think o f an extension o f the H C A that recognizes the value o f non-paid household work at the same rate as the average income earner, or at a rate equal to the cost o f hiring a household helper. Inthis case, the H C A can be applied to the death o f non-income earners and children (whether or not children will become income earners or take care o f the home duringtheir adult life). Inthe case o f the elderly, the H C A would not assign an economic value to old individuals that have either retired from the workforce or do not make significant contributions to household work. This obviously i s a serious shortcoming o f the HCA approach. The second issue regarding the HCA is that the social cost ofmortality is limitedto the economic contribution o f an individual or value o f household work ifthe individual takes care o f the home. Alternative approaches to the valuation o f mortality, or social cost o f mortality, have therefore been developed and increasingly been applied in the past couple o f decades. These approaches 135 employ a concept or measure called VSL, which nowadays is muchmore widely used in public policy thanthe HCA approach. The estimated cost of mortality in Tajikistan based on HCA, using Eq. 1 is presented in Table A.3.16. Average annualincome i s approximatedby GDP per capita, at about 1050 TJS per year. Average Number of Thousand TJS Years Lost Adults: Mortality from Urban Air Pollution 7 7.4 Mortality from Indoor Air Pollution 6.8 7 Children: Mortality from Indoor Air Pollution 65 32.5 Mortality from Diarrheal Illness 65 32.5 Value of StatisticalLife While the HCA involves valuation of the death of an individual, VSL is based on valuation of mortality risk. Everyone in society is constantly facing a certain risk of dying. Examples of such risks are occupational fatality risk, risk of traffic accident fatality, and environmental mortality risks. It has been observed that individuals adjust their behavior and decisions in relation to such risks. For instance, individuals demand a higher wage (a wage premium) for a job that involves a higher than average occupational risk of fatal accident, individuals may purchase safety equipment to reduce the risk of death, and/or individuals and families may be willing to pay a premium or higher rent for properties (land and buildings) ina cleaner and less pollutedneighborhoodor city. Hence by observing individuals' choices and willingness to pay for reducing mortality risk (or minimum amounts that individuals require to accept a higher mortality risk), it is possible to measure or estimate the value to society of reducingmortalityrisk, or, equivalently, measure the social cost of a particular mortality risk. For instance, it may be observed that a certain health hazard has a mortality risk of 1/10,000. This means that one individual dies every year (on average) for every 10,000 individuals because of that particularhealthhazard. Ifeach individual on average is willing to pay 10TJS per year for eliminatingthis mortalityrisk, then every 10,000 individuals are collectively willing to pay 100 thousand TJS per year for eliminating the mortality risk. This is the VSL for eliminating the mortality risk. Mathematically it can be expressed as: where WTPAve is the average willingness-to-pay (TJS per year) per individual for reducing the mortality risk of magnitude R. In the illustration above, R=1/10.000 (or R=O.OOOl) and WTPAve= 10 TJS. Thus, if 10 individualsdie each year from the healthrisk illustratedabove, the cost to society i s 10* VSL = 10*100 thousandTJS = 1 million TJS. EstimatingVSL 136 The main two approaches to estimate the VSL are revealed preference and stated preference analyzes. Most of the studies that use revealed preferences are hedonic wage studies, which estimate labor market wage differentials associated with differences in occupational mortality risk. The stated preference studies use Contingent Valuation Methods (CVM), which estimates Willingness-To-Pay(WTP) of individualsfor mortalityrisk reduction. Mrozek and Taylor (2002) provide a meta-analysisof VSL estimates from labor market studies from around the world. They identify a "best-practice" sample and control for industry characteristics other than occupational mortality risk that also affects inter-industry wage differentials. The study concludes that a lower estimate for VSL of USD 2 million can be reasonably inferred from labor market studies when "best-practice" assumptions are used. It should however be noted that the VSL range inferred by Mrozek and Taylor (2002) is substantially lower than average VSL estimated in some other meta-analyses where the mean VSL is as high as US $6 million. As a higher bound for VSL a mean estimate of VSL meta analysis from of USD 5.4 million was applied. The latest meta analysis of VSL estimates is by Kochi et a1 (2006) utilizing the empirical Bayes pooling method to combine and compare estimates ofthe VSL data from 40 selectedstudiespublishedbetween 1974 and 2002, containing 197 VSL estimates. BenefitTransfer There are no studies on VSL in Tajikistan. The overwhelming majority of VSL studies have been conducted in countries with substantially higher income level than in Tajikistan. Hence VSL estimates from these countries haveto be adjustedto suit the conditions inTajikistan. One commonly used approach in benefit transfer is to use income elasticities. 39Viscusi and Aldi (2002) estimate an income elasticity of VSL inthe range of 0.5-0.6 from a large sample of VSL studies. The range in income elasticity is however influenced by three unusually high estimates o f VSL from labor market data from one state inIndia. Leaving out these three studies provides an incomeelasticity of about 0.80. However, the most appropriate income elasticity to use for low-income countries, such as Tajikistan, remains uncertain as the income level in Tajikistan falls far outside the range of income inthe sample of countries from which the income elasticities of VSL is estimated in the empirical literature. A prudent approachmight be to apply an elasticity of 1.O in order to reduce the risk of overstatingthe cost of mortalityinTajikistan. Table A.3.17 presents the VSL for Tajikistan from benefit transfer based on the range of VSL reported by Mrozek and Taylor (2002) as the lower bound, and Kochi et a1 (2006) as the upper bound, and an incomeelasticity of 1.O. These figures are substantiallyhigher than the ones from the HCA, especially for adult mortality due to urban air pollution and indoor air pollution. A comparisonis presentedinTable A.3.18. Table A.3.17: EstimatedValue of StatisticalLife in Tajikistan 39The incomeelasticity is the percentagechange in VSL per percentagechange in income. 137 Average VSL inhigh-incomecountries (million US $) 5.4 2 Kochi et a1 (2006), Mrozek and Taylor (2002), Average GDPkapita inhigh-incomecountries (US $) 30 000 30 000 World Bank* GDP oer caoita inTaiikistan(US $ in 2004'1 340 340 WDI 2006 Incomeelasticity 11.0 11.0 Estimated VSL in Tajikistan (thousand TJS) 1189 I70 IBenefittransfer *Weighted average GDP per capita, based on the sample in Mrozek and Taylor (2002). Table A.3.18: A Comparisonof HCA and VSL estimates appliedto Tajikistan I Ratio of VSLMCA I Adults mortalitv I 18 I I Childrenmortalitv 14 I 138 Annex 4, Institutionaldesign of environmentalmanagementsystem in Tajikistan The environment protection law stipulates several types o f controls and institutions to implement the environmental provisions at the state, ministerial, business and community levels. The state level control i s exercised by the State Control Service on Nature use and Protection in the Ministry of Agriculture and Environment Protection and by the Sanitary Inspection Service of the Ministry of Health and Inspectionon MiningSafety. At the ministerial level enforcement is done by different line ministries and the state agencies under them with no effective coordination across the line ministries. In addition to the state level and ministerial level controls there i s a businesslevel control, which impliesthat every business has to observe the environmental law. Pursuant to Article 12 o f the Tajik Constitution "On the Government o f Republic o f Tajikistan" and Decree of the President dated November 30, 2006 the then agency responsible for environmental affairs, State Committee on Environment Protection and Forestry (SCEPF) was dismissed and its functions were assigned to the Ministry of Agriculture and Nature Protection. The government through its decree on December 28, 2006 created the State Control Service of Natural Resources and Environmental Protection (SCSNREP) under the Ministry o f Agriculture and Nature Protection (MANP)40. The newly reconstituted MANP has the Department o f Nature Use and Protection, chaired by a Deputy Minister. The different agencies under the DNUP are SCSNREP, Agency on Hydrometeorology and Anti-hail service, Agency on Forestry and Hunting, Tajik Scientific Research Institute of Nature Use and Forestry, Scientific-Research Center on Water Resources Protection, Scientific-Research Laboratory on Nature Protection, State Department on specially protected areas "Tajik National Park", Scientific-Production Center "Tabiat" and the State Enterprise, "Saidu Sayokhat". The organizational setup o f the environment block in the MANP i s presented in Chart 1. The organizational chart o f the SCSNREP i s presented inChart 2 The role of the national government is to approve regulations of the ministries and state committees, define their structures and to be responsible for their coordination and international cooperation for enforcement o f environmental laws. In order to achieve these, the government i s expected to undertake the following specific functions: (1) formulate unified state policy on the use o f natural resources, environment protection and environmental safety, (2) adopt measures to provide rights to residents for a healthy environment and environmental safety, (3) coordinate activities o f the state environmental protection agencies, state and intergovernmental environmental programs aimed at prevention o f natural and manmade disasters and their mitigation, and (4) implement control over nature protectionand use o f natural resources. 40EarlierMinistry of Agriculturewas limited in its functions in environment protection.The most important functions were import and export control,control o f agriproductsproduction, processingand stocking, o f wastes and equipment to manage final products and environmental safety in general. The Ministry was also responsible for quarantine of plants and animals, coordinationof studies in land use, applicationo f chemical fertilizers.The Ministry had no right to enforce administrative sanctions for violations of environment protectionlaw as they were applied by the specialized inspectorateand the Ministry could only refer to that inspectorate.. As regards quarantine,the Ministry had had its own State Inspection service to enforce quarantine of plants and State Veterinary Inspection the veterinary quarantine requirements 139 The mission of the State Control Service o f Natural Resources and Environment Protection (SCSNREP) Agency is environmental protection and sustainable use o f natural resources and to ensure effective interdepartmental coordination. The SCSNREP i s entrusted with the following functions : define national policies for environmental protection, research on sustainable use o f natural resources, mitigation o f effects o f global climate change; prepare and publishinformation bulletins and bi-annual reports on environment; draft environmental laws and standards and develop a framework for sustainable use o f natural resources; issue individual permits for the use o f specific types o f resources and overseeing their compliance and revocation incase o f violations; develop a system o f economic instruments to stimulate sustainable use o f natural resources; establish limits on the use o f certaintypes of strategic natural resources; manage the special (off-the-budget) ecological fund. The Service is entitled to: (1) obtain required environmental information from other governmental services; (2) request reports related to the environment from other governmental agencies and issue mandatory decrees; (3) suspend or limit economic activities which violates environmental law; (4) prohibit import or transit o f hazardous cargo in case o f violations o f environmental law; (5) prohibit projects whose implementation violates environmental requirements. The SCSNREP has its own laboratory and expertise needed to conduct the following four specialized inspections: 0 State Water Inspectionin regard to the water resources inthe country; 0 State Inspection o f Animals and Plants to ensure safe use and protection o f plants and animals; State Inspection o f Land and Wastes so as to facilitate sustainable use o f lands and optimal waste management practices;). 0 State Air Inspectionfor the implementation o f ambient air quality standards; The Inspectionofficers o fthe SCSNREP have rightto: 0 access any business or other facility with the purpose o f inspection o f relevant documents, performance o f water treatment facility and controlling devices; issue mandatory instructions to mitigate ecological consequences; 0 enforce administrative sanctions and request environment authorities to initiate criminal cases against violators, and sue them incivil courts for damage done; 0 suspend or terminate business operations hazardous to environment or public health. The inspection officers can operate independently but are limited by their powers as defined by law (Administrative Code, Environment protection law). 140 Khukumats (the local authorities with executive power) are responsible for enforcement of environmental laws in oblasts, rayons and cities. Their chairmen are appointed by the President and approvedby Majlisi Oli. 141 1 M C *. .I sc, 0 C 0 C m CLd C 4- P 2:2 v) 0 .I 4- u aa 0C 8 uh B 5u c, 4 s1 nQ) n -r 7- I I U a a 3 I