Telman Shuriev, the head of the Industrial Asset Management Department at “NAC Kazatomprom” and a Doctor of Business Administration in Industrial Technology, sheds light on the key directions outlined in President Tokayev’s address to Kazakhstan regarding the development of the geological exploration and water sectors, as reported by inbusiness.kz.
The President’s address to the nation demonstrates a forward-thinking approach towards a new economic model and takes into account the opinions of experts and the public. Notably, the development of geological exploration stands out as a strategically important decision. The President emphasizes the need to modernize the management system of the mining sector promptly. I find it particularly significant that the Head of State has set an ambitious goal of expanding the area of geological and geophysical exploration to a minimum of 2.2 million square meters within the next three years. This emphasis on the development of rare and rare-earth metal deposits is well-founded, considering Kazakhstan’s abundant reserves. It is expected that this sector will attract both domestic and foreign investors, especially as the country moves towards economic decarbonization, actively reducing greenhouse gas emissions and carbon intensity in its industries.
President Tokayev also highlights the crucial role of water resources in Kazakhstan, placing them on the same level of importance as oil, gas, and metals. The establishment of an independent ministry dedicated to overseeing water issues signifies a significant step forward. This decision aligns with the practices of developed countries, where specialized agencies are created to focus on key areas of national development. Additionally, the re-establishment of the National Hydrogeological Service in Kazakhstan is of great importance. This institution will address water resource challenges and can be structured to operate independently of the state budget. By collaborating with investors and natural resource users, the National Hydrogeological Service can create a competitive environment and become a promising avenue for investment in Kazakhstan’s economy.
Notably, experts in the field of ecology and hydrogeology in Kazakhstan have also expressed the need for a national company dedicated to managing groundwater. They emphasize the importance of transforming existing state-authorized enterprises into a unified entity that includes specialists from geology, hydrogeology, ecology, and the industrial sector. This approach, coupled with adequate state budget allocation, can pave the way for comprehensive work in this sector. For example, focusing on the underground Kokzhida deposit, located in the Aktobe Region’s Temir District, which has significant reserves capable of providing drinking water to the western region of the country.
President Tokayev’s address sets a clear vision for the development of the geological exploration and water sectors, emphasizing the importance of these industries for Kazakhstan’s economy. With the implementation of modernized management systems and the reorganization of government agencies, the country is well-positioned to capitalize on its abundant reserves and address critical challenges in these sectors, attracting investment and driving sustainable development.
The issue of accessibility and quality of water resources in Kazakhstan is a matter of great significance. Currently, Kazakhstan ranks 70th in terms of access to quality water supply, making it one of the most water-deficient countries in the Eurasian continent. Within Asia, it stands at the 8th position in terms of water deficiency, with only 2.8% of its territory covered by water, while arid zones comprise two-thirds of the land. In essence, Kazakhstan is heavily reliant on water. This situation primarily arises from excessive regulation in the upper reaches of rivers, such as the construction of reservoirs and extensive water usage. Furthermore, the costs associated with irrational water consumption in these river basins, such as limited utilization of water-saving technologies, lack of automated water accounting, and underdeveloped agricultural cooperation, exacerbate the problem. Experts express concern that if these trends persist, Kazakhstan will face severe water supply challenges in the future, as natural surface water resources have been steadily declining in recent years. Additionally, climate change projections indicate a 14% to 40% decrease in water flow by 2030. It is evident that there is a lack of comprehensive policy for the development of the water supply sector, with previous programs focused more on restoring existing systems. Despite significant budget allocations and the adoption of state programs, many villages and regions still lack access to drinking water.
Undoubtedly, the quality of governance significantly impacts the effectiveness of water policy. The deficiencies in ensuring the population’s access to drinking water can largely be attributed to the frequent reorganization of state bodies, resulting in the transfer of responsibilities of the Committee on Water Resources from one department to another. The management of water resources has been marred by wastefulness, as indicated by Kazakhstan’s assessment as the least efficient in terms of water governance according to the Global Water Partnership UN Water Governance and State of the World’s Water index. Another challenge stems from the absence of a single authorized body responsible for coordinating the implementation and management of policies related to providing the population with drinking water. Previously, these functions were divided between two ministries that did not effectively collaborate. Furthermore, local representative bodies (maslikhats) in the regions have played a limited role in monitoring the use of budget funds.
To improve the situation in the water sector, several measures need to be taken. It is imperative to establish a unified monitoring system that tracks the availability of centralized water supply and the quality of drinking water in both urban and rural areas. This system should be entrusted to a single independent authority to avoid conflicts of interest. The normative and legal framework, as well as terminology, should be regulated. External specialists with expertise in water resource management should be engaged in developing goals, intentions, and efficiency indicators for each level of government. Priority attention must be given to training and capacity building of specialists in water resource management. Attracting investments for the construction of new pipelines and equipment types should be accompanied by strict consumption control.
In his address, President Tokayev emphasized the responsible and prudent use of resources, including water. I wholeheartedly support this notion. The industrial sector, which accounts for approximately 25-30% of total water intake, deserves greater attention from government bodies. Of this proportion, 92% is sourced from surface water, while 8% comes from groundwater sources. Regrettably, only about 20% of industrial enterprises utilize water recycling technologies. Projections indicate that by 2030, industrial water intake will increase by another 10%, accounting for 35-40% of total water resources, while the overall quantity of water resources in the country is expected to decline. Assessing losses reveals that industrial consumers experience an average water loss of about 40% during transportation.
To address these concerns, authorized bodies should collaborate with industrial companies to conduct accurate studies on losses and develop solutions for their reduction. Timelines for implementing these measures, along with appropriate funding, should be established. Initiating loss indicators and subsequently setting Key Performance Indicators (KPIs) for their reduction is crucial. Currently, precise indicators in this regard are lacking. To commence this effort, allocating funds within the 1% for Research and Development (R&D) for subsoil users would be a prudent step.
It is also worth noting that there is a deficiency in adequate and quality water consumption metering equipment, both at the inlet and outlet stages of production. Metering should be implemented at all stages, and it is essential to ensure that metering devices are in working order. Accurate data is indispensable for a comprehensive understanding of water management.
Kazakhstan has already approved a Low Carbon Development Strategy until 2060, which encompasses clear indicators and potential tools for reducing greenhouse gas emissions, particularly in the industrial sector. Similarly, it is imperative for the country to develop a similar strategy for effective water resource management until 2050. This strategy should encompass indicators for water resources, with a high level of implementation. Such a strategy would provide industrial enterprises with guidance for their environmental policies, fostering a more coherent and systematic approach rather than chaotic“`
I believe that it is a very timely decision to determine the current status of water for our country. Government bodies insufficiently pay attention to the consumption of the industrial sector, where about 25-30% of the total water intake is accounted for by industry, of which 92% is surface water and 8% is groundwater sources. It should be noted that only about 20% of industrial enterprises use water recycling technologies. Meanwhile, there is a forecast that by 2030, industrial water intake will increase by another 10% and will account for 35-40% of the total volume of water resources, while the quantity of water resources in the country will decrease. The assessment of losses shows us that water losses during transportation average about 40% for industrial consumers.
In this regard, I would recommend that authorized bodies, in conjunction with industrial companies, conduct studies on accurate losses, develop solutions for their reduction, determine the timelines for the implementation of measures with the allocation of appropriate funds, establish the starting point for loss indicators, and then set KPIs for their reduction. Currently, there are no exact indicators in this direction. To start with, we can determine the funds allocated within the 1% for R&D for subsoil users.
It is also worth noting that at the moment there is a lack of adequate and quality water consumption metering equipment at the inlet and outlet, not to mention the need for metering at all stages of production; on some enterprises, metering devices do not work at all, as a result, we do not have accurate data and, accordingly, do not see the full picture of water management.
Kazakhstan has approved a Low Carbon Development Strategy until 2060, which includes clear indicators and possible tools for reducing greenhouse gas emissions, including in the industrial sector. By analogy, our country needs to develop a similar strategy for effective water resource management until 2050, reflecting indicators for water resources, with a high status of implementation. This will provide industrial enterprises with guidance on the general direction of their environmental policy, rather than working in a chaotic manner.
