The document summarizes regional trends in water management in Eastern Partnership countries. It finds that while progress has been made in areas like legislative, institutional, and regulatory reforms, challenges remain. Key ongoing challenges include fully implementing integrated river basin management, strengthening river basin organizations, meeting commitments under association agreements, and addressing fragmentation in policymaking. Financing also remains a major issue, as public budgets for the water sector are declining while investment needs are rising. Tariffs for water and sanitation services also typically do not cover costs. Overall progress has been made but continued efforts are needed to meet deadlines and ensure sustainable financing models.

1. 1
REGIONAL TRENDS AND
OVERVIEW
European Union Water Initiative Plus for Eastern Partnership (EUWI+)
6 July 2021

2. 2
• Legislative reforms - moving towards alignment with EU acquis and
good practice
• Institutional reforms to harmonise roles and responsibilities still
require strengthening
• Regulatory reforms to promote efficient water resource use and
improve water quality
• Technical standards and norms progressed to promote efficiency
• Progress made under MEAs including the Protocol on Water and
Health and SDGs
• Strategic and mid-term planning progressed, though remains
fragmented
• Improved monitoring and access of data for decision making
• Strengthened capacity with river basin management planning
PROGRESS HAS BEEN MADE IN ALL COUNTRIES
SINCE 2016

3. 3
CHALLENGES REMAIN
• Implementation of river basin principle
• Despite progress, some countries manage water resources according to administrative-
territorial principles
• Many EaP countries still lack capacities to develop RBMPs without external support
• Progress in adoption of RBMPs can be slow, high costs and challenges to secure
government funding can prevent implementation of adopted RBMPs
• Advancement of institutional arrangements in basins (RBOs, RBCs)
• Not all EaP countries have RBOs and RBCs in place, and where established and
functioning, significant capacity building is needed
• Continued support to establishment of sustainable functioning of RBOs/RBCs is needed
• Requirements under AAs and CEPA
• Despite progress achieved, more needs to be done, AAs and CEPA contain ambitious
and time-bound commitments
• There is a clear need to accelerate action to achieve targets and timeline
• Fragmentation around policy making exists
• Impacts strategic planning, forecasting and budgeting
• Conflicting frameworks and overlapping needs can lead to over estimation of costs
• Need for coherent cross-sectoral plans and sustainable financing
• Role of National Policy Dialogues will be key during the next phase of reforms

4. 4
DYNAMICS OF PUBLIC BUDGET ALLOCATIONS TO
WATER SECTOR
• Financing remains a major challenge in EaP countries. Around 0.4% of
GDP is spent on water (e.g. in EU, over 1.2% of GDP is spent on WSS
and irrigation (not counting monitoring and other costs))
• Public budget allocations show declining trend even before COVID
• Risk to sustained public budget
allocations to water sector

5. 5
PUBLIC BUDGETS ARE UNDER PRESSURE WHILE
INVESTMENT NEEDS ARE INCREASING
Comparison of the average annual allocations to water sector in the period 2011-2020
and the required additional annual investments in the period of 2021-2030 (Eur/capita)

6. 6
INVESTMENT NEEDS ESTIMATES ARE STILL
INCOMPLETE AND REQUIRES COHERENT PLANNING
Required additional annual investments in the period of 2021-2030 in
EaP countries according to sub-sectors, (EUR/per capita)

7. 7
WATER TARIFFS AND AFFORDABILITY
• Tariffs for WSS and irrigation still remain
low, typically not covering O&M costs
• Reforming tariffs often faces political
resistance
• Increased affordability constraints,
especially as a result of the pandemic
• Artificially low water tariffs can hurt
vulnerable communities, preventing
infrastructure development and the
provision of reliable public services in
rural areas
• Targeted social measures, supporting
low income groups, instead of trying to
ensuring cheap water for all

8. 8
• Considerable progress made under EUWI+
• Challenges remain including to meet fixed deadlines and
commitments that are fast approaching
• Instability remains a feature
• Public budget under increasing pressure
• Policy coherence will be key:
• Strategic cross-sectoral planning
• Development of prioritised investment programmes
• Sustainable financing including the use of economic
instruments
• Role of National Policy Dialogues can be strengthened
• Opportunity to “operationalise” EUWI+ outcomes as this work moves
to its next phase
LESSONS LEARNED