Wedoany.com Report on Mar 11th, As Central Asia's water crisis continues to intensify, Uzbekistan finalized a special allocation of 600 billion Uzbek soms (approximately $49 million) on March 5, 2026. The funds are focused on canal modernization and efficient water resource utilization to address agricultural irrigation pressures and water scarcity risks. This move is both a short-term contingency measure and a crucial step in implementing long-term strategy.
This article is the 264th installment in the Resource Engineering Consulting Rankings' "Uzbekistan Business Guide" series. It provides an in-depth look at the industrial policies, laws and regulations, industry trends, market demands, competitive landscape, and potential transaction opportunities in the fields of investment, trade, and engineering construction across the five Central Asian nations (Uzbekistan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan) and surrounding countries (Afghanistan, Azerbaijan, Georgia, Armenia, Mongolia).
Fund Allocation and Project Details
According to the presidential decree, the entire amount of this funding comes from new regional budget revenues in the first quarter of 2026. It is allocated in two main segments: 480 billion Uzbek soms (approximately $39.5 million) for concrete canal and irrigation network construction, and 120 billion Uzbek soms (approximately $9.8 million) for other water conservation and management measures.
The core project involves rebuilding and reinforcing 389 kilometers of irrigation canals with high leakage rates. It is expected to save 206 million cubic meters of water resources and 26 million kilowatt-hours of electricity annually, while improving water supply stability for 158,400 hectares of irrigated farmland.
The government has required the Ministry of Water Resources and the Ministry of Economy and Finance to submit a priority project list within one week. Following approval by the Cabinet, the Ministry of Water Resources, in collaboration with the Republic of Karakalpakstan and provincial governments, will advance the projects. The engineering will follow the "one-canal, one-system" principle, prioritizing channels where modernization has already begun.
Water Security Becomes a Core Central Asian Issue
Uzbekistan's per capita water availability is only 702 cubic meters, classifying it as a typical water-scarce country. Agricultural water use accounts for over 90% of consumption. High leakage rates in aging canals, coupled with accelerated glacier melt in Central Asia and fluctuating flows in transboundary rivers, have made water scarcity a core constraint on agricultural production and economic development.
The country previously launched a 2025–2028 Water Resources Management Plan, aiming to rebuild 2,551 kilometers of irrigation networks. In the long term, the government has also set a 2030 target to ensure 85% of the population has access to reliable drinking water services. This special allocation serves as the crucial link between short-term intensive efforts and the long-term strategy.
Government-Business Collaboration Accelerates Transformation
This project is government-led, establishing clear inter-departmental and cross-regional collaboration mechanisms for the digitalization and standardization upgrade of irrigation infrastructure.
For local engineering enterprises, fields such as concrete canal construction and water-saving equipment installation will see an increase in orders. Simultaneously, the project's implementation will accelerate the adoption of water-saving technologies, aiding the transition of agriculture from traditional flood irrigation to efficient irrigation. This fortifies Uzbekistan's water security defenses and provides a practical model that can be referenced for water resource governance in Central Asia.
