1、Almaty 2025Irrigation Equipment Production in Central Asia:Industrializing the Water SectorVinokurov,E.(ed.),Ahunbaev,A.,Adakhayev,A.,Chuyev,S.,Russo,F.,Sackda,S.,Savrasov,A.,Todua,G.(2025).Irrigation Equipment Production in Central Asia:Industrializing the Water Sector.Joint Working Document.Almaty

2、,Vienna.Eurasian Development Bank,United Nations Industrial Development Organization.AbstractThe management of water resources in Central Asia is a critical and pressing issue for the region.The sustainable development of agriculture depends heavily on the adoption of advanced irrigation systems and

3、 innovative technologies that maximize water efficiency.To address these challenges,Central Asian governments have already implemented significant initiatives aimed at improving water management.The current irrigation equipment market is valued at approximately$130200 million,with a substantial port

4、ion of demand met through imports.Projections indicate that by 2040,the area of irrigated land in the region will increase to 10.6 million hectares,with a notable shift toward sprinkler and drip irrigation systems.This growth in irrigated land,along with the adoption of advanced technologies,is expe

5、cted to drive demand for approximately 2 million units of irrigation equipment.As a result,the local production of irrigation equipment in Central Asia could generate up to$426 million annually,offering a promising opportunity to address the regions needs while tapping into the market potential.Keyw

6、ords:Central Asia,irrigation equipment,localization,manufacturing,industrial policy,water efficiencyJEL:D20,E61,L52,O14,O25.Reprinting or other forms of reproduction of this text,in whole or in part,including substantial excerpts,as well as posting it on external electronic platforms,are permitted p

7、rovided that proper attribution to the original source is given.The electronic version of this document is available on the websites of the Eurasian Development Bank at https:/eabr.org/analytics/special-reports/and the United Nations Industrial Development Organization at https:/www.unido.org/public

8、ations.Eurasian Development Bank&United Nations Industrial Development Organization,2025Demand for technical meansand equipment for irrigation up to 2040,in thousand unitsIrrigation equipment demand up to 2040across countries of the region,%MARKET FOR IRRIGATION EQUIPMENT IN CENTRAL ASIA WILL GROWAS

9、 MORE EFFICIENT WAYS OF MANAGING WATER ARE NEEDED KEY FINDINGSAnalytical report 25 Annual investments for new irrigationequipment needed by 2030$426 millionFor sprinklersonly$114million$220millionFor dripirrigation onlyACTIVEINDUSTRIAL POLICYSPECIALECONOMIC ZONESDEVELOPED HARDINFRASTRUCTUREFAVORABLE

10、REGULATORY BASEPREVIOUS POLICYWORK ON CLUSTERSINCREASING ADOPTIONOF DIGITAL AGENDABUILDINGCRITICAL MASS Of irrigation equipment manufacturing enterprises through enhanced project STAGE ISTRENGTHENINGCLUSTER POLICY At the national level in line with other state development programs and policiesSTAGE

11、IIENHANCINGCLUSTER FORMATIONS To increase their synergies within the clusters and with external bodiesSTAGE III Surface irrigation Sprinklers Drip irrigation Other methods 20262030 20312040 Surface irrigation Sprinklers Drip irrigation Other methods Uzbekistan Turkmenistan Tajikistan Kyrgyzstan Kaza

12、khstanIRRIGATION EQUIPMENT PRODUCTION IN CENTRAL ASIA:INDUSTRIALIZING THE WATER SECTORKEY FACTORS NEEDED FOR SUCCESSFUL LAUNCH OF IRRIGATION EQUIPMENT PRODUCTION IN CENTRAL ASIATHREE STAGES OF DEVELOPING AN IRRIGATION EQUIPMENT PRODUCTION CLUSTER IN CENTRAL ASIAIrrigation Equipment Production in Cen

13、tral Asia:Industrializing the Water Sector2ACKNOWLEDGEMENTThis publication was prepared jointly by the Eurasian Development Bank(EDB)and the United Nations Industrial Development Organization(UNIDO).It has benefited from the guidance and technical input of the following individuals:Mr.Evgeni Vinokur

14、ov,Deputy Chairman of the EDB Management Board Chief Economist Mr.Arman Ahunbaev,Head of the EDB Center for Infrastructure and Industrial Research Mr.Asset Adakhayev,Senior Analyst,EDB Center for Infrastructure and Industrial Research Mr.Stanislav Chuyev,Senior Analyst,EDB Center for Infrastructure

15、and Industrial Research Mr.Fabio Russo,UNIDO Chief and Officer-in-Charge,Division of MSME Competitiveness,Quality and Job Creation Mr.Sayaphol Sackda,UNIDO Head of Office,Communications,Conferences,and Media Relations Mr.Aleksei Savrasov,UNIDO Industrial Development Officer Mr.Giorgi Todua,UNIDO Ass

16、ociate Industrial Development ExpertWe also acknowledge the valuable contribution and support of Mr.Tulegen Sarsembekov,EDB water sector expert,as well as colleagues from the UNIDO divisions:Division of MSME Competitiveness,Quality and Job Creation,Division of Innovative Finance and International Fi

17、nancial Institutions,Division of Digital Transformation and Artificial Intelligence,and Division of Agribusiness and Infrastructure Development.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector3DISCLAIMERCopyright 2025 Eurasian Development Bank&United Nations Industria

18、l Development OrganizationThe data presented in this report are believed to be accurate at the time of publication but cannot be guaranteed.The findings,conclusions,and recommendations in this report are based on information gathered in good faith from both primary and secondary sources,the accuracy

19、 of which cannot always be assured.The views,interpretations,and conclusions expressed in this report do not necessarily reflect the views of either the Eurasian Development Bank(EDB)or the United Nations Industrial Development Organization(UNIDO).The designations and presentation of material in thi

20、s document do not imply the expression of any opinion whatsoever on the part of EDB or UNIDO concerning the legal status of any country,territory,city,or area,or the authorities thereof,or concerning the delimitation of its frontiers or boundaries,or its economic system or degree of development.Desi

21、gnations such as developed,industrialized,and developing are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process.Mention of company names or commercial products does not constitute an endors

22、ement by EDB or UNIDO.While great care has been taken to ensure the accuracy of the information presented,neither EDB nor UNIDO,nor their member states,assume responsibility for any consequences arising from the use of this material.This document may be freely quoted or reprinted,but acknowledgment

23、is requested.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector4ABBREVIATIONSADTAdvanced development territoryAIArtificial IntelligenceCACentral AsiaCDACluster Development AgentCISThe Commonwealth of Independent StatesEBRDThe European Bank for Reconstruction and Develop

24、mentEDBEurasian Development BankEPZExport processing zoneEUThe European UnionFAOFood and Agriculture Organization of the United NationsFTZFree trade zoneGDPGross domestic productHaHectareIFIInternational Financial InstitutionIoTInternet of ThingsITInformation technologiesIZIndustrial zoneJSCJoint-st

25、ock companyKm3Cubic kilometerLLCLimited liability companyLTDLimited liability companyMmMillimeterMpaMega PascalR&DResearch and developmentSEZSpecial Economic ZoneSMESmall and medium enterprisesSoCSystem-on-ChipS&TScience and technologyUS/USAThe United States of AmericaUSDUnited States dollarWEFThe W

26、orld Economic ForumWIPOWorld Intellectual Property OrganizationWSNWireless Sensor Networks5Table of ContentsTABLE OF CONTENTSACKNOWLEDGEMENT.2DISCLAIMER.3ABBREVIATIONS.4INTRODUCTORY NOTE BY THE EURASIAN DEVELOPMENT BANKS CHAIRMAN OF THE MANAGEMENT BOARD.6FOREWORD FROM THE DIRECTOR GENERAL OF THE UNI

27、TED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION.7SUMMARY.801 IMPORTANCE OFEFFICIENT IRRIGATION EQUIPMENT FORCENTRAL ASIA.1502 THE IRRIGATION EQUIPMENT MARKET INCENTRAL ASIA.2203 CLUSTER FORMATION INTHE WATER SECTOR OFCENTRAL ASIA.4004 INDUSTRIAL CLUSTERS ANDCRITERIA FORTHEIR ESTABLISHMENT ANDFUNCTIO

28、NING INCENTRAL ASIA.4505 PROMOTING THE ESTABLISHMENT OFA PRODUCTION ANDSERVICE CLUSTER FORIRRIGATION EQUIPMENT INCENTRAL ASIA.6106 UNIDOS ROLE INTHE DEVELOPMENT OFEFFICIENT CLUSTERS.65CONCLUSION.72REFERENCES.74THE LIST OF EDB PUBLICATIONS.76THE LIST OF UNIDO PUBLICATIONS.78INTRODUCTORY NOTE BY THE E

29、URASIAN DEVELOPMENT BANKS CHAIRMAN OF THE MANAGEMENT BOARDCentral ghjAsia requires not only sustainable growth but also rapid progress,as it is essential for the well-being of its population.A key factor in achieving this goal is the advancement of industrialization,particularly through the producti

30、on of higher value-added goods.To this end,it is critical to identify and target stable niches where the region can gain a competitive edge.One promising area of opportunity is the irrigation equipment market.In Central Asia,irrigation is a vital component of agricultural production and food securit

31、y.The annual market for irrigation equipment is currently valued at approximately$200 million,mostly met through imports.By 2030,it is expected to more than double,reaching over$400 million annually.Developing local industrial production in this sector is crucial for ensuring a sustainable future fo

32、r the region.Modern technologies can enhance water use efficiency by 5080%,reducing losses and increasing crop yields by 30-50%.Localizing production will allow for technologies to be tailored to the specific needs of the region and local farmers,potentially reducing equipment costs by up to 30%.The

33、 introduction of advanced irrigation systems requires investment,sound policy,and effective cooperation among key stakeholders.One potential solution is the formation of a regional cluster for irrigation equipment production,which could leverage the regions economic potential.The release of this new

34、 joint Working Document with UNIDO on the development of the irrigation equipment cluster in Central Asia is a significant milestone.Our institutions collaboration aligns with industry standards for knowledge creation and sharing.This paper serves as a foundation for further research and solutions t

35、o the regions economic challenges,contributing to its sustainable development.It opens the door for long-term and productive cooperation between our organizations.We hope this proposal will play a key role in fostering economic prosperity throughout Central Asia.UNIDOs industrial development initiat

36、ives remain crucial to driving inclusive and sustainable economic growth.We are confident that our continued partnership will deliver valuable outcomes for both our institutions and the region as a whole.Nikolai Podguzov,Chairman of the Management Board,The Eurasian Development BankIrrigation Equipm

37、ent Production in Central Asia:Industrializing the Water Sector6FOREWORD FROM THE DIRECTOR GENERAL OF THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATIONIn Central Asia in particular,the sustainable management of water resources is key to agricultural productivity,food security,and economic devel

38、opment.The sustainable development of agriculture in the region depends on the introduction of novel technological and irrigation solutions designed to optimize the use of each drop of water.Establishing an irrigation equipment manufacturing and service cluster is an innovative path forward in respo

39、nse to the regions growing demand for modern water-saving techniques.At United Nations Industrial Development Organization(UNIDO)we are committed to reducing poverty and hunger by facilitating such innovative technologies and solutions in order to stop environmental degradation and alleviate climate

40、 change impacts.Addressing challenges such as water scarcity,outdated irrigation infrastructure,and the effects of climate change requires targeted action and new levels of cooperation.Moreover,expanding collaboration in the water sector across Central Asia and strengthening ties within the countrie

41、s of the Aral Sea Basin through cluster initiatives will drive innovation,increase the flow of foreign direct investment,and promote job creation.Many significant measures have already been implemented by the Governments of Central Asian countries in order to address the regions water-related challe

42、nges.The market for irrigation equipment is currently valued between$130200 million,yet most equipment is currently still imported.Moreover,the demand for sprinkler and drip irrigation systems is projected to further rise.Increasing the amount of properly irrigated land and the corresponding increas

43、e in the implementation of technological solutions will result in a demand for approximately 2 million pieces of irrigation equipment.This is a huge opportunity:Central Asia could generate over$400 million annually from the production of irrigation equipment.An efficient irrigation cluster addresses

44、 these evolving challenges and chances.It would improve the management and regulation of limited water resources in the region,improve the living standards of local communities,and improve the market competitiveness of regionally manufactured products.By integrating modern irrigation systems and pre

45、cision technologies,the cluster initiative will not only enhance water-use efficiency but also contribute to achieving the wider Sustainable Development Goals.UNIDO is very glad to work together with the Eurasian Development Bank,sharing our expertise in cluster development to better advance sustain

46、able industrial development.This joint publication paves the way towards the establishment of a game-changing irrigation equipment manufacturing and service cluster in Central Asia.I hope this publication will inspire more decisive action and new partnerships and help create a more resilient,prosper

47、ous,and sustainable future for Central Asia and beyond.Gerd Mller,Director General,UNIDOIrrigation Equipment Production in Central Asia:Industrializing the Water Sector7Irrigation Equipment Production in Central Asia:Industrializing the Water Sector8SUMMARYThe formation of an irrigation equipment pr

48、oduction and supporting irrigation services sector would enable the aggregation of capacities to provide irrigation equipment and efficient technologies tailored to the irrigation needs of Central Asian countries.Efficient irrigation technologies are acritical component ofwater resource management i

49、nCentral Asia,which is apressing issue inthe region today.The development ofagriculture inCentral Asia depends on the implementation ofmodern irrigation andinnovative technological solutions tooptimize the efficiency ofwater use.The United Nations Industrial Development Organization(UNIDO)and the Eu

50、rasian Development Bank(EDB)have both expressed their intention to support the production of irrigation equipment and supporting irrigation services in Central Asia.The development of irrigation equipment production can address challenges in the water sector(Vinokurov et al.,2023)and enhance industr

51、ial potential.The irrigation equipment sector would produce high quality irrigation equipment and focus on the development of high performance,multifunctional irrigation tools.In addition to industrial goods production,the sector would develop precision irrigation technologies,digital tools for wate

52、r management,and centers of excellence for water resources and irrigation.It would also improve the scientific and workforce competencies and competitiveness of the agro-industrial complex of the region.The effective management ofwater resources is acritical andtime-sensitive issue inCentral Asia.Ce

53、ntral Asian states are already implementing tangible measures toaddress emerging water challenges.Governments inthe region are directing particular attention tomodern irrigation andwater management.Currently,up to$200million worth ofirrigation equipment is imported into the region each year tomeet f

54、armers current needs.Of these imports,approximately 80%in 2023 were destined for Kazakhstan.Kazakhstan is currently implementing extensive initiatives to address emerging water challenges,with the introduction of water-saving technologies being a key component of these plans.Over the Annual imports

55、of irrigation equipment in Central Asia amount to$200 million About80%in 2023 are destined for Kazakhstan9Summarypast ten years,the country has achieved remarkable success in introducing new water-saving technologies on irrigated land(Figure A).Figure A:Introduction ofwater-saving irrigation technol

56、ogies inthe Republic ofKazakhstan,annual deployment area in1,000 ha 250200150100500Drip irrigation systemsSprinkler systems2014201520162017201820192020202120222023202475.797.4100.5121.95160.8161.1176.5200214.160.872.982.893.649.860.472.279.595.3Source:Concept ofWater Resources Management System Deve

57、lopment inthe Republic ofKazakhstan for2024-2030.Additionally,specific government programs and agencies are being established.It is worth noting that the Republic of Kazakhstan has recently adopted new Water Code,which aims to address a number of critical challenges in the countrys water sector,taki

58、ng into account the regional aspect.However,the demand forirrigation equipment andmethods will experience a significant long-term increase.The modernization of existing agricultural fields and the introduction ofnew irrigated areas inthe near future will put considerable pressure on the development

59、ofnew irrigation equipment.According to government plans and program documents,Central Asian countries are expected to significantly increase the area under irrigated agriculture using various irrigation technologies(Dankova et al.,2022).By 2040,the total area covered by these technologies is expect

60、ed to reach 10.6 million hectares.Uzbekistan will account for the largest share with 4.3 million hectares(40.5%),followed by Kazakhstan with 2.7 million hectares(25.5%).By 2040,the total area covered by water-saving technologies will be10.6 million haIrrigation Equipment Production in Central Asia:I

61、ndustrializing the Water Sector10Based on these projections,we have forecast the approximate demand forirrigation technologies andequipment that will be needed tomeet the growing agricultural needs ofthe Central Asian countries(Figure B).The largest demand forirrigation equipment between 2026 and 20

62、40 will be for surface irrigation,with an estimated 1,525,000units required.Figure B.Forecast of demand for technical means and equipment for irrigation up to2040,thousand units1,000800600400200065087531.57146.513424.9117.5Surface irrigationSprinklersDrip irrigationOther methods2026203020312040Sourc

63、e:EDB calculations.The surface irrigation method will remain dominant inthe region,particularly in Uzbekistan,which would require approximately 900,000units,or 59%ofthe total demand(Figure C).In addition,approximately 102,500 units ofsprinklers would be required,with Kazakhstan being the primary mar

64、ket andrequiring approximately 70,000units(representing 68.3%ofregional demand).Figure C.Irrigation equipment demand up to 2040 across countries of the region,%100806040200Surface irrigationSprinklersDrip irrigationOther methodsUzbekistanTurkmenistanTajikistanKyrgyzstanKazakhstanSource:EDB calculati

65、ons.11SummaryDrip irrigation systems are expected toaccount fora significant portion ofthe total demand forirrigation equipment inthe region.In total,the region would require 180,500 units ofnew drip irrigation systems.Given the regions agricultural conditions,the majority ofthese systems will be re

66、quired,with Uzbekistan accounting forthe largest demand(115,000units or 63.7%ofthe regions total drip irrigation systems).The total investment that is necessary tointroduce new irrigation equipment inCentral Asia would be around$426 million annually until 2030.The introduction of sprinklers would co

67、st$114 million a year,while drip irrigation would cost$220million forthe same period.The localization ofessential irrigation equipment inCentral Asia has the potential tofacilitate the retention ofthese investments within the local economy.The total amount ofinvestments in the introduction of new ir

68、rigation equipment isprojected to reach$426 millionannually until 2030,including$114 millionfor sprinklers and$220 million for drip irrigation.We propose the establishment of a local irrigation equipment production through clusterisation,which could prove an effective means of leveraging the regions

69、 growing potential.Based on the required irrigation infrastructure,it is possible to produce a range of irrigation equipment in the domestic market,including sprinklers,regulators,pipelines,drip pipes,connecting fittings,nozzles,valves,and mobile means of water redistribution.To begin with,among all

70、 Central Asian countries the Republic of Kazakhstan offers an optimal environment for the development of irrigation equipment production.This is due to the countrys advanced infrastructure and favorable regulatory environment.The country has an active industrial development policy that provides supp

71、ort for new manufacturing industries through a range of financial and non-financial instruments.Furthermore,the Government of Kazakhstan has implemented a comprehensive cluster policy that includes approved programs and measures to support cluster initiatives.Furthermore,Kazakhstans advanced digital

72、 agenda and affiliation with the Global Network of Fourth Industrial Revolution Centers,along with the associated center at the Astana International Financial Center,provide a platform for the professional development of digital water metering and infrastructure monitoring technologies.This will att

73、ract skilled labor and scientific expertise to develop new equipment using digital tools,including digital twins of irrigation fields,advanced analytics,sensors,and digital water meters and etc.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector12To reduce costs and faci

74、litate accelerated development of a sector,we recommend that the initial production make use of existing infrastructure,including both hard and soft facilities.Special Economic Zones(SEZs)have the potential to serve as a catalyst for the growth of industrial enterprises.In the early stages of emergi

75、ng industries,SEZs provide incentives to attract manufacturers,thereby facilitating the establishment of critical mass.There are currently 14 SEZs in Kazakhstan.We believe that the SEZ Jibek Joly in the Zhambyl region of southern Kazakhstan is a promising location for the formation of an irrigation

76、equipment production sector due to its strategic location near the Aral Sea basin and irrigated lands in Central Asia,coupled with its focus on priority industrial activities.This experience can later be shared with other Central Asian countries.This experience can later be shared with other Central

77、 Asian countries.Furthermore,the Republic of Kazakhstan and the Republic of Uzbekistan have the potential to establish a regional joint production cluster through industrial collaboration.Currently,an interstate joint project,the International Center for Industrial Cooperation Central Asia,is being

78、implemented by both countries.Construction and installation are scheduled to commence in March 2025.However,the latest data indicates that the Republic of Uzbekistan has already granted the Center the status of a special economic zone.The status and benefits of the SEZ,as previously recommended,will

79、 be a key initial condition for the production of irrigation equipment and its subsequent transformation into a fully-fledged cluster formation.The establishment of a cluster partnership for irrigation equipment production at this location would provide a significant boost to regional industrial col

80、laboration and represent a crucial milestone in addressing the growing water challenges in Central Asia.Furthermore,this initiative will facilitate participation by both countries in the global There are currently 14 SEZs in Kazakhstan13Summaryvalue chain and import substitution in irrigation equipm

81、ent in Central Asia.Moreover,our projections indicate that Kazakhstan and Uzbekistan will be the primary consumers of irrigation technologies and equipment in the coming years.Given these circumstances,the project can be successfully implemented at the site of International Center for Industrial Coo

82、peration Central Asia.The development of the irrigation equipment manufacturing as a comprehensive program for the development of the industry and the economy as a whole can be carried out in three stages.The initial stage involves the establishment and development of production,while the subsequent

83、 stages involve the cultivation of cluster competencies and the implementation of necessary policies within the country(Figure D).Figure D.The stages of irrigation equipment manufacturing sector developmentStage IStage IIStage III202520262027202820292030.Financing projects tobuild critical massEDB,d

84、evelopment banks,financial organizationsPreparation ofpolicy documents andpolicies forthe full launch ofthe cluster program inthe countryUNIDOWorking with government agencles andorganizations on training on cluster initiativesUNIDOFinancing projects on aregular basis tosupport industrialization inth

85、e southern region ofthe Republic ofKazakhstan andkeep the irrigation cluster activeEDB,development banks,financial organizations,local authorities.big business,Ministry ofIndustry andConstructionWorking with cluster initiatives once acritical mass ofenterprises isformed,training ofcluster agents and

86、working with enterprisesUNIDO,international cluster associationsSource:EDB andUNIDO estimates.Prior tothe installation ofcluster initiatives,itis essential toestablish agreater number ofcompanies engaged inthe production ofirrigation equipment inthe region.The EDB has agreed toassist inthe developme

87、nt ofirrigation equipment manufacturing projects.Significant progress has already been made inthis regard.In addition toinvestment projects,we have been working with the Ministry ofWater Resources andIrrigation ofthe Republic ofKazakhstan andthe United Nations Development Program on ajoint initiativ

88、e inthe water sector.The goal ofthis initiative is topromote best practices inwater management andirrigation infive regions ofKazakhstan.It is expected that the joint efforts ofthe aforementioned parties,inconjunction with UNIDO,will bring significant benefits tothe water sector andthe economies oft

89、he entire Central Asian region.Given UNIDOs extensive experience in industrial development and the establishment of cluster initiatives,its remit could be extended to the Irrigation Equipment Production in Central Asia:Industrializing the Water Sector14formulation of cluster initiatives,the enhancem

90、ent of special economic zones.UNIDO is well positioned to conduct feasibility studies aimed at identifying optimal cluster structures,formulating policy recommendations,ensuring implementation,monitoring development activities and evaluating results.UNIDOs expertise would facilitate the modernizatio

91、n of the industrial and cluster policy and the involvement of producers in the project.The aim of work will be to strengthen the cluster approach and equip local experts with the necessary skills for effective engagement.The initiative should be launched in parallel with the development of irrigatio

92、n equipment manufacturing projects and continue as industrial facilities are established.At last,once clusters are ready,collaboration with manufacturers toform aunified cluster is essential.UNIDO would assist by conducting feasibility studies,defining optimal structures andstrengthening business re

93、lationships within the cluster(figure E).Effective cluster governance involves the establishment ofbusiness networks,public-private partnerships anddialogues between service providers andpolicy makers.Technical assistance is also needed toalign the services offinancial andnon-financial service provi

94、ders with the needs ofthe cluster.Figure E:UNIDOs role in facilitating the formation of irrigation equipment manufacturing sectorStrengthening business relationships within the cluster byorganizing confidence-building activitiesStrengthening cluster governance arrangements bychanging the patterns of

95、interaction among cluster membersStrengthening institutions that can lead andcoordinate joint actions within clusterEstablishing and/or supporting business networksFacilitating dialogues between cluster members andpolicymakersTechnical assistance tofinancial andnon-financial service providers (e.g.b

96、usiness development agencies,vocational schools,etc.)Source:UNIDO.01 IMPORTANCE OFEFFICIENT IRRIGATION EQUIPMENT FORCENTRAL ASIAIrrigation Equipment Production in Central Asia:Industrializing the Water Sector16Efficient irrigation technologies are crucial for water management inCentral Asia.Agricult

97、ure is the main water consumer inCentral Asian(hereafter CA)countries:100.4 out of127.3 km3/year,or 79%,ofwater used inthe region is forirrigation(2020).Irrigated agriculture plays amajor role inensuring food security in CA countries.Occupying about 24%of all cultivated areas,irrigated land provides

98、 66%ofthe gross agricultural output ofthe region invalue terms:about 100%inTurkmenistan,87%inUzbekistan,85%inKyrgyzstan,82%inTajikistan,and40%inKazakhstan.In crop production,the figure reaches 80%on average forCA countries.This is due tothe fact that asignificant part ofthe territory ofthe region is

99、 located ina zone ofinsufficient andunstable humidification andthe development ofagriculture is possible only using irrigation.Irrigated lands allow maintaining the sustainability ofagricultural production,especially indry years.The socio-economic development ofCA countries takes place under conditi

100、ons ofwater deficit,which creates risks forfood andwater security.The region is exposed toclimatic changes andweather cataclysms.Some territories ofthe countries ofthe region,due totheir geographical location,are increasingly suffering from severe droughts andextremely high pressure on water resourc

101、es.The increasing number ofdroughts anddry spells,changes inthe hydrological 17Importance of efficient irrigation equipment for Central Asiaregime of rivers and groundwater recharge conditions pose threats andhigh risks tofood security.By2028,the combination ofclimate change,the onset oflow-water pe

102、riods,andthe commissioning ofthe Kosh-Tepa Canal inAfghanistan will lead the Central Asian region toan acute chronic water deficit estimated byEDB analysts at 512 km3(Vinokurov et al.,2023).The irrigation infrastructure ofCA countries is characterized by high(7080%)wear and tear on water sector fixe

103、d assets.The average age ofirrigation inter-farm andon-farm infrastructure reaches 50 years,and large main canals are even older.Unsatisfactory technical condition ofirrigation infrastructure reduces the quality ofservices on maintenance andupkeep ofirrigation systems both bystate water management o

104、rganizations(main andinter-farm irrigation structures,canals)andirrigated land owners(on-farm structures andirrigation networks),which together leads tolarge economic losses.A distinctive characteristic ofCA countries is also extremely low economic efficiency ofwater use(Vinokurov et al.,2022).One o

105、fthe reasons is significant water losses.Studies(Royal Haskoning,2003)have revealed large water losses at all stages ofwater transport from the water intake tothe field andon the field itself during irrigation.About 40%of water withdrawn from rivers is subject tofiltration losses inthe canal system.

106、On farms,water losses in most cases occur due to poor on-farm water management caused by the extremely unsatisfactory ameliorative condition ofirrigated lands,irrigation,andthe collector-drainage network.Under conditions oflimited water resources andreaching the limit ofextensive irrigated farming i

107、nCentral Asia,the role ofindustrial agricultural technologies based on water andenergy saving is increasing.Irrigation infrastructure on irrigated lands has an insufficient technical level,poorly equipped with modern means ofdistribution ofirrigation systems andcontrol ofirrigation water inthe field

108、.Central Asian countries should strive for widespread adoption ofwater-saving technologies andimprovement oftechnical and engineering level of irrigation systems,as well ascultivation ofhigh-yield crops.7080%of the irrigation infrastructure in CA countries exhibits high levels of wear and tear on wa

109、ter sector fixed assets50 years is the average age ofirrigation inter-farm and on-farm infrastructureIrrigation Equipment Production in Central Asia:Industrializing the Water Sector18Efficient use of limited water resources in agriculture requires modern irrigation technologies andadvanced water man

110、agement practices.Some progress has been made inthis area,such asthe transition from surface irrigation tomore efficient sprinkler anddrip irrigation technologies.However,surface irrigation ofagricultural crops will remain the dominant irrigation technology in the near future,andfurther improvements

111、 are needed.Todays irrigation systems around the world are more than just field irrigation anddrainage systems.Irrigation involves complex machinery and equipment,including pumping equipment,water delivery pipelines,sprinklers such asBig Gun sprinklers(Nelson Irrigation Corporation),wheeled wide-bea

112、m frontal and rotary sprinklers,drip tape andtubing,micro-sprinklers,andso on.Increasingly,precision technologies(drones,sensing devices,sensors,mobile applications,etc.)are becoming an integral part ofirrigation systems because oftheir potential toimprove efficiency andreduce costs inthe production

113、 ofhigh-value crops.Irrigation continues to use more traditional irrigation technologies that have proven tobe effective.Microsprinkler irrigation is one ofthe most expensive but water-efficient irrigation technologies.This technology uses small nozzles(sprinklers)to spray water over gardens,greenho

114、uses,andfields.There is also drip irrigation,which uses drip emitters todeliver small amounts ofwater directly tothe root zone ofplants.This type ofirrigation is traditional,andthere are two types subsurface andabove-ground.They differ inthe location ofthe drip network todeliver water tothe plants.T

115、here are several types ofsprinkler irrigation that differ inthe way the main irrigation machine is operated.A centralized circular sprinkler irrigation system consists oflong steel beams,sprinkler nozzles andpivots(usually electric)around acentral base that spray water ina circular system across the

116、 field.Linear sprinkler irrigation uses sprinklers mounted on wheels that move across the irrigated area ofthe field.Roller sprinkler irrigation distributes water through apipe with asprinkler on rollers that move across areas between rows(Table 1).19Importance of efficient irrigation equipment for

117、Central Asia Table 1.Application ofdifferent irrigation methods according tonatural-climatic andmeliorative conditionsIrigation technologyAmeliorative condition ofsoilComplex topographyLarge slopesClose proximity tothe GWTMineralised watersWater shortageSaltedlight mechanical compoundheavy mechanica

118、l compoundMicrosprinkler micro-irrigation-+-+Sprinkling-+-+Surface+-+-+-Underground-+-+Drip-+-+Note:GWT groundwater table.Source:Olgarenko andTurapin,2020.Automated irrigation systems are needed toconserve water,andthis improvement can play a paramount role in minimizing water use.Agriculture andfar

119、ming practices are already linked tothe Internet ofThings andautomation,which can make processes much more efficient andeffective(FAO,2022;Bauyin et al.,2020).Sensor systems help farmers better understand the needs ofcrops,reduce environmental impact,andconserve resources(Rezac,2022;Xiuling et al.,2

120、023).Irrigation Equipment Production in Central Asia:Industrializing the Water Sector20Sensors and monitoring equipment as components of an irrigation system are critical to the development of an effective irrigation management system.Their use can increase food production with minimal water loss.Ac

121、curate monitoring facilitates data collection toadequately reflect real-time crop,soil,andweather conditions inirrigated areas using the Internet ofThings(IoT)andWireless Sensor Networks(WSN).Through these advanced systems,effective soil andweather monitoring andefficient water management are realiz

122、ed(Obaideen et al.,2022).In the future,AI-based applications are expected toplay an increasing role inirrigation(Qazi et al.,2022),with peripheral devices such as wireless sensors becoming“smart”enough tomake autonomous decisions without relying on powerful central servers running AI algorithms.With

123、 recent advances inelectronics,embedded systems with increased processing power andmemory(system-on-chip,SoC)can provide acomplex solution without relying on other external entities.In addition,we can note the development anduse of5G technologies andthe emergence ofself-managed irrigation and wateri

124、ng techniques and devices,the rise of blockchain technologies to fend off cyberattacks on sophisticated water supply anddistribution information systems,andsmart irrigation based on big data.21Importance of efficient irrigation equipment for Central AsiaInnovations inthe irrigation sector are emergi

125、ng andbeing implemented in response to changing environmental demands andthe threat ofescalating water risks.The development ofrelated technologies andtheir reduction incost is also astrong reason tosupport the establishment ofnew water andirrigation systems.However,any single irrigation technology,

126、when applied toa specific region,requires time tobe fully implemented andto increase long-term efficiency(USGovernment Accountability Office,2019).In this context,with regional population growth,rapid climate change,increasing pressure on water resources,andlimited capacity tobring new agricultural

127、land under cultivation,there will be an increasing need tofurther expand the area ofirrigation rehabilitation andadopt modern andintegrated agro-meliorative solutions.The global pattern ofinvestment inirrigated land is gradually changing,with priorities shifting from the development oflarge-scale ir

128、rigation infrastructure(dams,reservoirs andlarge main canals,large areas ofirrigated land)tomore efficient technological methods ofwater use andwater demand management.02 THE IRRIGATION EQUIPMENT MARKET INCENTRAL ASIA23The irrigation equipment market in Central AsiaCurrent Market VolumeThe share ofi

129、rrigated land inCentral Asia is 26.2%ofthe total arable land.According toEDB estimates,based on data from national statistical offices andrelevant government agencies,the irrigated area inthe region will be 10.1million ha(by 2022).This is about 2.9%ofthe worlds irrigated area.Central Asia ranks fift

130、h inthe world interms ofirrigated area,after major players such asChina,the USA,India andPakistan.Uzbekistan has 42.3%ofthe regions irrigated area,followed byKazakhstan(22.2%),Turkmenistan(17.8%),Kyrgyzstan(10.1%),andTajikistan(7.5%).Most ofthe irrigated land(75%ofthe total area)is located inthe Ara

131、l Sea basin.Most ofthe irrigated area inCentral Asia(8.6million ha or 85%)is equipped with technical irrigation infrastructure.Surface irrigation technology is the dominant method(88%),with the largest area inUzbekistan(3.6millionha).Mechanized irrigation technologies,including sprinkler irrigation,

132、are used on only 4.7%ofthe total area,with the dominant use inKazakhstan(186,000 ha).Rational andeconomical use ofwater inagricultural fields is the main factor ofwater saving andreduction ofsalinization ofirrigated land inCentral Asian countries.In the context ofmodern irrigation water supply,the p

133、roportion ofwater withdrawn from sources anddelivered tothe field is estimated tobe between 40 and50percent,while the proportion used bycrops is estimated tobe between 35 and42percent.It is therefore imperative tofurther optimize water use inagriculture toreduce the water deficit inthe region.To ach

134、ieve this,it is necessary to improve the techniques andmethods used toirrigate crops andto modernize the irrigation infrastructure.One method ofreducing water consumption inirrigated agriculture is the use ofsprinklers ofvarious types andmodifications,aswell asthe development ofdrip irrigation techn

135、ologies forthe cultivation ofhigh-yield crops inhorticulture,vegetable farming,andother agricultural practices.Today,the total demand forirrigation equipment inthe Central Asian countries is estimated tobe between$140 and$320million per year.This represents about 48%ofthe world market,according toth

136、e most conservative estimates.Uzbekistan is the main source ofdemand with an estimated value of$200million per year.This includes drip irrigation equipment,various pumps andmetering equipment.Mechanized irrigation technologies,including sprinkler irrigation,are used on only 4.7%of the total area,wit

137、h the dominant use in Kazakhstan(186,000 ha)$140320 millionthe total demand forirrigation equipment inCentral Asian countries.Thisis approximately 48%of the global market.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector24 Table 2.Regional demand forirrigation equipmen

138、t bycountries CountryDemand forirrigation equipmentTop demand,USD mln.Uzbekistan pumping units ofvarious types andcapacities drip irrigation equipment surface irrigation anddrainage equipment water metering equipment200Tajikistan60Kazakhstan sprinkler technology surface irrigation equipment drip irr

139、igation equipment water metering equipment30Turkmenistan surface irrigation anddrainage equipment water distribution equipment20Kyrgyzstan water metering equipment water distribution automation equipment drip irrigation systems surface irrigation equipment9Source:EDB calculations,state support progr

140、ams,trademapCurrently,a significant portion of this demand is met byimports ofirrigation equipment.Over the past decade,the volume ofimports has increased fourfold,reaching avalue of$132million bythe end of2023(Figure 1).Of the total imports,81.5%were destined forKazakhstan.Figure 1:Imports ofirriga

141、tion equipment inCentral Asia 2013-2023,USD mln.Figure 2:Top 10 major suppliers ofirriga-tion equipment tothe region by2023,%250200150100500323338245160959323310513220132014201520162017201820192020202120222023BrazilTrkiyeChinaUSAAustriaGambiaNetherlandsRussiaGermanySpain27.219.89.18.98.77.56.53.22.6

142、1.5051015202530Source:EDB calculations,trademap.Source:EDB calculations,trademap.In 2023,the value of imports of irrigation equipment in CA amounted to$132 million.A total of 81.5%of these imports were destined for Kazakhstan.25The irrigation equipment market in Central AsiaThe Central Asian market

143、is supplied by a number ofcompanies from different countries,including Brazil,Turkey,China,the US andAustria(Figure 2).Companies include Lindsay,Piltar,Acarmaksan,Alchemist Technologies,Ezport,Serdrip(Turkey);Golden Dragon,Ybiyuan,Yulin(China);Valley,Zimmatik,Reinke,TL(USA).The following companies a

144、re also represented:Poliv,Raduga,Aquafield(Russia);Bauer(Austria);Beinlich,Karcher(Germany);Ocmis,RM,Nettuno,Idrofoglia,Irtec,Irrimec(Italy);RKD(Spain).All equipment is designed tooperate ina closed irrigation network,with automated operation,multi-purpose use,computer control andmanagement systems,

145、awide range ofmodifications andoptions,andmaximum consideration ofspecific application conditions.Government supportGlobal market trends show the importance ofgovernment support forthe irrigation equipment market.Central Asian countries have active policies tosupport the introduction ofirrigation te

146、chnologies andthe purchase ofirrigation equipment.Mechanisms of state support for the agro-industrial complex and,consequently,for irrigation equipment inthe CA countries include subsidies forpart ofthe cost ofpurchased equipment,leasing,preferential loans,subsidized interest rates forthe purchase o

147、fagricultural machinery and equipment for own needs,and special privileges under investment agreements.In the Republic ofKazakhstan,President Kasym-Jomart Tokayev,inhis address tothe people ofKazakhstan on September 1,2023,noted the importance ofintroducing water-saving technologies andordered the e

148、stablishment ofa Ministry ofWater Resources andIrrigation.In 2024,aspart ofthe new ministrys comprehensive work on all aspects ofwater resources management,subsidies were revised.In particular,subsidies forfarmers toadopt water-saving technologies were increased by 30%,from 50%to80%.This will help c

149、over the cost ofpurchasing modern irrigation systems and connecting all the necessary infrastructure.Other measures have been developed toencourage farmers toconserve water anduse itefficiently.In particular,the new Water Code provides forgovernment support inthe form ofsubsidies andreduced water ta

150、riffs According to the New Water Code of the Republic of Kazakhstan,farmers may receive subsidies amounting to up to 80%of the costs associated with the adoption of water-saving technologies.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector26depending on the adoption o

151、fwater-saving technologies.It also proposes that tariffs be calculated according tothe types ofcrops grown andthe amount ofwater they consume.In addition,subsidies fordrilling wells have been increased to80%.The Ministry plans tointroduce water-saving technologies throughout the country.To implement

152、 the Presidents directive,astep-by-step plan has been developed until the end of2030,andeach region has been given specific target indicators toincrease the area ofcrops where water-saving systems are installed.Today,certain achievements have been made in the development of the implementation of wat

153、er-saving technologies in the Republic of Kazakhstan.Over the past 8 years,the annual area ofland where drip irrigation systems have been introduced has grown 2.8 times(from 75.7thousand ha to214.1thousand ha),and1.6 times where sprinkler systems have been introduced(from 60.8thousand ha to95.3thous

154、andha).Figure 3:Dynamics ofintroduction ofwater-saving irrigation technologies inthe Republic ofKazakhstan,annual deployment area in1,000 ha250200150100500Drip irrigation systemsSprinkler systems2014201520162017201820192020202120222023202475.797.4100.5121.95160.8161.1176.5200214.160.872.982.893.649.

155、860.472.279.595.3Source:Concept ofWater Resources Management System Development inthe Republic ofKazakhstan for2024-2030.By the end of 2030,the plan is to save up to 2.1 billion cubic meters of water per year by covering more than 50%of the countrys total irrigated area with water-saving technologie

156、s27The irrigation equipment market in Central AsiaBy 2025,according to the National Project for the Development ofthe Agro-Industrial Complex,itis planned toincrease the area covered bywater-saving technologies to450,000hectares,which will result insignificant water savings.Therefore,the purchase of

157、irrigation equipment will be subsidized under this national project.To encourage agricultural enterprises toimplement water-saving technologies,the Ministry ofAgriculture provides government support inthe form ofinvestment subsidies andsubsidizes the cost ofwater supply services tofarmers.From May 2

158、024,the standard ofcost subsidization is 80%forinvestment inthe purchase andinstallation ofwater-saving technologies,ofwhich 30%is subsidized from the local budget.In addition,inJuly 2023,inorder toencourage farmers touse modern water-saving technologies,the Regulations on Subsidizing the Cost ofWat

159、er Supply Services toFarmers were amended to differentiate the amount of subsidy according tothe type ofirrigation.According tothe amendments,the percentage ofcompensation forirrigation without the use ofwater-saving technologies,regardless ofthe method ofwater supply,will be gradually reduced over

160、three years andwill range from 30%to55%,depending on the cost ofthe tariff.In the case ofirrigation using water-saving technologies,the compensation will range from 60%to85%,depending on the cost ofthe tariff.In 2024,44 irrigation projects were planned to be implemented inKazakhstan asa result ofgov

161、ernment initiatives.The development of domestic irrigation equipment production can be based on the already applied mechanisms of subsidizing the purchase of irrigation machinery and equipment.At present,these subsidies are used forimports,thus supporting foreign producers.The amount ofsubsidies is

162、quite sufficient tomeet the domestic demand Irrigation Equipment Production in Central Asia:Industrializing the Water Sector28forirrigation equipment inKazakhstan and,accordingly,todevelop its own industrial production.Such manufacturers ofequipment forirrigation systems sprinklers anddrip irrigatio

163、n systems asMetzer Kazakhstan,BNK irrigation,Samal commodities,JSC“KELET”,etc.could form the basis ofa new machine-building industry.The concept ofdevelopment ofthe water sector for20202030 is being implemented inUzbekistan.The strategy includes anumber ofinfrastructure,policy,institutional and capa

164、city-building measures for sustainable water resources management andmodernization ofthe countrys irrigation sector,aswell asprograms andmeasures aimed at water resources management anddevelopment ofthe irrigation sector.Key activities include:Repair andrehabilitation ofirrigation canals on the bala

165、nce sheet ofwater management organizations;Construction andreconstruction ofirrigation facilities;Equipping hydrological stations on rivers with automated equipment based on digital technologies;Replacement of obsolete pumping units of pumping stations ofthe system;Introduction of digital technologi

166、es to ensure on-line control;Introduction ofwater-saving technologies forcrop irrigation.Specifically,the program has set goals ofincreasing water use efficiency by25%andincreasing the total area covered bywater-efficient irrigation technologies to2million acres,including drip irrigation technologie

167、s to600,000 acres.A number of manufacturers of irrigation equipment drip irrigation systems,fittings,fertilizer dispensers,taps andvalves forirrigation control,external drippers andother irrigation accessories,aswell aspumping stations andwater meters are produced inUzbekistan.The main consumers ofU

168、zbek products are industrial cotton andtextile clusters,such asMergantex andAgrocluster inBukhara.In addition toproduction,Uzbek companies are also involved inthe 29The irrigation equipment market in Central Asiainstallation and operation of irrigation systems.The localization ofwater-saving technol

169、ogies has reached 80%.In Uzbekistan,there are more than 50 enterprises producing technologies that can cover up to300,000 ha per year.Irrigation is apriority sector inthe Kyrgyz Republic.The State Irrigation Development Program for 20172026 is being implemented,which provides forthe construction ofi

170、rrigation infrastructure tocreate new irrigated land forrural residents.Under the program,2,100 km ofcanals and10,000 hydraulic structures have been rehabilitated and119pumping units have been replaced.In addition,67canals with alength of1,068kilometers were rehabilitated.These measures will reduce

171、irrigation water losses by3050%.Under the Agricultural Mechanization Program,farmers will have access topreferential leasing ofall types ofagricultural machinery andequipment,aswell assprinkler anddrip irrigation equipment forcrop irrigation,forup to10 years at an interest rate of6%per annum.From 20

172、24 to 2030,39,600 ha of new irrigated land will be developed through the construction of 86 ten-day regulation reservoirs,and water supply to 223,700 ha of irrigated land will be increasedIrrigation Equipment Production in Central Asia:Industrializing the Water Sector30Irrigation Equipment Productio

173、n Initiatives inCentral AsiaAgainst the background ofincreasing water scarcity andthe corresponding expansion ofmeasures tosupport the introduction ofefficient irrigation technologies in 20232024,Central Asia has intensified activities toorganize its own production ofirrigation equipment.In Kazakhst

174、an,the American company Valmont Industries has announced plans tobuild alarge-scale production facility formodern irrigation systems.The projected cost of the project is$53 million,and the projected production capacity is up to1,000units ofirrigation equipment per year.It is estimated that the proje

175、ct will create 200 jobs.The facility is expected tobe operational inthe fourth quarter of2025.While the company has selected the Kairat Industrial Zone inthe Almaty region,there is potential forfurther discussions toestablish an irrigation cluster inKazakhstan.In the rural district ofShaga inthe Sau

176、ran district ofthe Turkestan region,the Kazakh company BNK Group incooperation with the American company Nelson Irrigation has started the production of circular andfrontal sprinklers in2023.The total cost ofthe sprinkler irrigation machinery plant is 4.05billion tenge.The production facility will o

177、ccupy an area ofabout 3,000 square meters.The project will establish the production ofa full cycle ofirrigation machines forthe widespread application ofwater-saving technologies inKazakhstan.In 2024,anew automated workshop was built,where each joint ofthe sprinkler is welded byrobots.The plant has

178、already reached its maximum production capacity of1,000 irrigation machines per year.In 2024,the construction ofa galvanizing line have begunanother workshop.By the end of2024,the production of irrigation systems have started.Inaddition,BNK GROUP LTD is inthe process ofpreparing the third phase ofth

179、e project,which will include the production ofagricultural machinery andtractors,aswell aswater catchment pumps.The total cost ofthe project is estimated at 7billion tenge.In December 2023,the launch ofanother irrigation equipment production project was announced under the name of“Irrigator Kazakhst

180、an”LLP.“Irrigator Kazakhstan”LLP has localized the production ofdrip pipes ofthe Israeli brand METZER,with which the local company has been cooperating forover adecade asa distributor ofproducts inKazakhstan.“Irrigator Kazakhstan LLP aims toexport its products tothe markets ofthe Russian Federation,

181、Central Asia andTranscaucasia.At present“Irrigator Kazakhstan”LLP has about 400 regular customers among agricultural producers,mainly consisting offarms andlarge agricultural 31The irrigation equipment market in Central Asiaenterprises inKazakhstan.The project is located within the Almaty City Indus

182、trial Zone,inclose proximity tothe regions with the highest demand fordrip irrigation,namely the Zhambyl andTurkestan regions ofsouthern Kazakhstan.The Almaty City Industrial Zone provided asite forthe project that included the necessary infrastructure,such asa stable power supply,areliable water su

183、pply,andaccess torailroad tracks.In addition,the plant is strategically located within the boundaries ofa major industrial city,providing convenient access tokey resources andsupport systems.SPACETIME sprinklers will be manufactured inKazakhstan through SPK JSC.The SPACETIME factory is located inAst

184、ana,where the companys products are manufactured.The same irrigation equipment production is expected tobe established inEast Kazakhstan.The first production samples of“Su Bereke”irrigation machines have already been installed on farms inEast Kazakhstan.The primary structure is manufactured inKazakh

185、stan,but the intention is toreplace imported components with domestic ones inthe future.Other initiatives inKazakhstan include the following:Kazakhstan andTurkey signed an agreement on the construction oftwo plants forthe assembly ofirrigation equipment inthe Zhambyl region.Relevant cooperation agre

186、ements on investment projects were signed with Ardent Plastik A.S.andAtlantis A.S.The latter is one ofthe leading companies inTurkey that produces high-quality irrigation products,including sprinkler systems,drip irrigation pipes andvarious types ofplastic pipes.The company was established in1979 an

187、dexports its products tomore than 35 international markets.Atlantis was established in1998 inIstanbul.It specializes inthe production andinstallation ofagricultural irrigation systems,drip irrigation systems,landscape(recreational)irrigation systems andcompact construction equipment.It also manufact

188、ures greenhouses andagricultural products.The project forthe production ofcomponents fordrip irrigation systems inthe city ofKonaev.The plant is ajoint project ofKazakh andChinese companies.It is expected that the plant will be able tosupply up to500hectares offields per week with drip irrigation te

189、chnologies.It is planned toopen asimilar plant inTaraz.The project of KAZ Caspian HYDRO Auyl Sharuashylylylygi Technologiyasy tomanufacture drip irrigation systems inthe Zhambyl region inthe amount of$6million.Work has begun on the installation ofproduction equipment.The launch ofthe enterprise will

190、 create 30 new jobs.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector32In the Kyrgyz Republic inthe summer of2024 itwas planned tostart construction ofa plant forproduction ofequipment for drip and sprinkler irrigation.The corresponding memorandum was signed with the T

191、urkish company“Akplas Plastik San.Ve Tic.A.S.”The company will invest$10million inthe first stage according tothe investment agreement.It is expected that the construction andcommissioning ofthe plant will be completed within eight months.The plant will require 10hectares ofland forconstruction.The

192、Republic ofTajikistan in2024 noted cooperation with Iran inintroducing water-saving technologies andmodernizing irrigation anddrainage systems.Eight Iranian companies specializing inthe production ofadvanced water-saving technologies andmodernization ofirrigation anddrainage systems are considering

193、the possibility of selling their products andservices.33The irrigation equipment market in Central AsiaIn Turkmenistan,the economic company“Turkmen Senagat”has established the production ofhigh-tech drip irrigation systems,which are manufactured according tocustomer specifications.“Turkmen Senagat”i

194、s a prominent pipe manufacturing company in Turkmenistan.Established in2018,the company initially focused on the production ofsmall-diameter polyethylene pipes.Over time,ithas diversified its product range toinclude pipes with diameters ranging from 16 to1,200mm.In terms of irrigated area,Uzbekistan

195、 is the largest inCentral Asia,the second largest among CIS countries,the fourth largest among Asian countries,andthe 13th largest inthe world.The localization ofthe production ofwater-saving technologies has reached 80%,with more than 50 production enterprises capable ofmanufacturing technologies t

196、hat can cover up to300,000 ha per year.The Republic continues tomake efforts tolocalize production.For example,the possibility ofestablishing an Uzbek-Israeli-Swiss joint venture“Irrigation Advance”with the Israeli company“Agrotal Group”inTashkent is currently being discussed.The primary goal ofthe

197、new joint venture is tointroduce modern irrigation technologies toUzbekistan.Initially,the venture plans toimport advanced Israeli drip irrigation equipment,facilitated bycredit lines intwo Uzbek banks,Pakhtabank andAsaka.In the long term,the venture aims toestablish ajoint production facility forad

198、vanced irrigation equipment inUzbekistan.Future Market Assessment According togovernment plans andprogram documents,the countries ofthe Central Asian region are expected toincrease the area under irrigated agriculture using various irrigation technologies(Dankova et al.,2022).By 2040,the largest num

199、ber ofhectares ofland covered byirrigation technologies is expected tobe reached.The total area covered byirrigation technologies is estimated tobe 10.6million hectares,with Uzbekistan accounting for 4.3 million hectares(40.5%)andKazakhstan for2.7million hectares(25.5%)(Table 3).Drip irrigation is e

200、xpected tomaintain its dominant position inUzbekistan,while sprinkling is expected tobecome the dominant technology in Kazakhstan.Surface irrigation is expected toremain the main method,with Uzbekistan andTurkmenistan using itmost extensively.10.6 million hatotal area covered by irrigation technolog

201、ies by 2040,with dominance of drip irrigation in Uzbekistan and sprinkling technologies in KazakhstanIrrigation Equipment Production in Central Asia:Industrializing the Water Sector34 Table 3.Status andforecast ofirrigated areas with irrigation infrastructureIrrigated lands,asof 2024by irrigation me

202、thods andtechniquesSurface irrigationSprinklersDrip irrigationOther methodsTotal,1,000 hautilized202420302040202420302040202420302040202420302040Kazakhstan2,243.41,557.61,298.41,300.01,400*185.8300.0950*73.0100.0300*2.010.050*Kyrgyzstan1,025.0925.0811.3753.5572100.0150.020013.270.02500.51.53Tajikist

203、an763.0680.0639.3626.667740.050.0800.525.0500.20.41Turkmenistan1,800.01,400.01,333.81,318.01,60550.060.09015.220.01001.02.05Uzbekistan4,280.54,010.035653,244.53,53031.048.2100398.0471.86001624.650Central Asia10,111.98,572.67,647.87,242.67,784406.8608.21420499.9686.8130019.738.5109Note:*In Kazakhstan

204、 itis planned toincrease the area ofirrigated lands up to2,700,000 ha by2050.Source:EDB calculations35The irrigation equipment market in Central AsiaThe projected number oftechnical means andequipment forirrigation up to2040 was revealed through an analysis of the relevant calculations.The greatest

205、demand forirrigation equipment forsurface irrigation between 2026 and2040 will be for1,525,000units ofequipment.Itis noteworthy that this method ofirrigation will remain the dominant method inthis region,andit will be necessary tomaintain the level oftechnical equipment andintroduce modern types ofe

206、quipment.Most ofthe demand forthis type ofirrigation equipment forsurface irrigation will be inUzbekistan,with an estimated 900,000units,accounting for59%ofthe total demand.During the same forecast period,approximately 102,500units ofsprinkler equipment andmachines ofvarious capacities will be requi

207、red.The primary market forsprinkler machines will be inKazakhstan,with an estimated demand of70,000units,representing 68.3%ofthe total regional demand forsprinkler machines.Drip irrigation systems will account fora significant portion ofthe total demand forirrigation equipment.In total,the region wi

208、ll require 180,500units ofnew drip irrigation systems.The regions agricultural conditions will require the majority ofthe regions drip irrigation equipment,with the greatest demand inUzbekistan(115,000units,or 63.7%ofthe regions total drip irrigation systems)(Table 4).Irrigation Equipment Production

209、 in Central Asia:Industrializing the Water Sector36 Table 4.Forecast ofdemand fortechnical means andequipment forirrigation up to2040Irrigated lands,asof 2040Technical irrigation equipment,thousand unitsSurface irrigation*Sprinklers*Drip irrigationOther methodsTotal,1,000 ha2026203020312040*20262030

210、20312040*2026203020312040*2026203020262040*Kazakhstan2,700.0*100.0200.0 20.0 50.07.520.02.5 50.0Kyrgyzstan1,025.0 50.060.02.55.01.514.00.51.5Tajikistan763.040.045.02.04.00.55.00.41.0Turkmenistan1,800.060.070.03.07.02.015.02.0 5.0Uzbekistan4,280.5400.0500.04.05.035.0 80.019.560.0Central Asia10,568.56

211、50.0875.031.571.046.5134.024.9117.5Note:*In Kazakhstan itis planned toincrease the area ofirrigated lands up to2,700,000 ha by2050.*different technical means used insurface irrigation*different types ofsprinkling machines andequipment.Source:EDB calculations.37The irrigation equipment market in Cent

212、ral AsiaTaking into account the current level ofscientific andtechnical progress and the planned implementation of water-saving technologies on irrigated lands,the main technical means andequipment forirrigation necessary fortheir use inagricultural production ofCentral Asian countries can be classi

213、fied asfollows.For surface irrigation systems,the production ofmodern mechanization andautomation solutions is an important area offocus.This includes the development ofadvanced irrigation fittings,portable mobile systems forwater redistribution within irrigated areas,andother innovative solutions.S

214、imilarly,the production ofvarious trenchers andditch diggers,machines forpreparing horizontal closed drainage andequipment forlaying open drainage is an important aspect ofthis area.The production ofearthen canals andtheir distribution is also akey area ofexpertise.The production ofvarious mechaniza

215、tion means forlevelling the surface ofirrigated plots should also be considered.This could include the production ofvarious laser-controlled earthmoving andplanning machines,automated short-base planners,andmachines andequipment formaintenance andrepair work against sediments,shrub vegetation,aswell

216、 asameliorative dredgers andcanal cleaners with equipment forcleaning concrete canals.Furthermore,inorder tomeet the future needs ofthe downstream countries located along the main rivers ofthe Aral Sea basin(namely,Uzbekistan andTurkmenistan),itis imperative tostart the production ofdrip irrigation

217、systems,including drip pipes anddrip tapes inboth compensated andnon-pressure compensated designs.In addition,the production ofdrippers,sets ofconnecting fittings,flexible pipes,layflat(LFT)50,75,100 and150 mm indiameter with aworking pressure of49atm,andsystems ofcontrol andautomation ofthe irrigat

218、ion process is required.Kazakhstan needs toestablish production ofvarious microsprinkler systems,including afull range ofmicrosprinklers that operate at pressures ranging from 0.15 to0.35 MPa.Additionally,low-pressure sprinkler nozzles are required.At apressure of0.10.2 MPa,the necessary equipment i

219、ncludes stands andholders fornozzles,shut-off andcontrol valves,head regulators,booster pumps,special equipment forfertilizing with irrigation water,andcomputerized irrigation control systems.Wide-catch sprinklers with electric drive on pneumatic stroke,operating automatically from aclosed network,a

220、re needed forirrigating areas ranging from 1050hectares up to200hectares per season.Hose reel sprinklers with medium jet devices or cantilever carts with low-pressure devices are needed forareas ranging from 3 to30hectares per season.Portable sprinklers that can be easily assembled are also required

221、.The sprinkler pipelines,made ofaluminum or plastic,should be capable ofserving Irrigation Equipment Production in Central Asia:Industrializing the Water Sector38up to50hectares per season,operating at pressures from 0.3 to0.5 MPa.It is important tohave hydraulic shutoff andcontrol valves,head andfl

222、ow controllers,booster pumps,andpower pumping equipment.The cost ofequipment offoreign manufacturers,based on expert assessments ofinformation resources andproposals offoreign manufacturers anddata ofdealer centers,is Large-area sprinklers ofcircular action$75,000100,000(basic machine with an operat

223、ing area per season up to70 ha);large-area sprinklers offrontal action$90,000120,000(basic machine with an operating area per season up to70ha);Hose reel sprinklers with hydraulic drive$35,00042,000(basic machine with aservice area per season up to30 ha),drip irrigation systems$20,00025,000(basic mo

224、dule with aservice area up to10ha);stationary sprinkler systems$25,00030,000(basic module fora service area up to10 ha);microsprinkler systems$30,00040,000(module 10 ha).Accordingly,an approximation of the investment costs required tointroduce irrigation technologies inCA countries toexpand irrigate

225、d land coverage can be calculated.This estimate is based on the projected need forequipment toimprove irrigation methods andtechnologies up to2040.The largest investment will be required fordrip irrigation systems,with an estimated$6.5billion needed across Central Asia.Significant investment will al

226、so be required forsprinkler technologies,with an estimated$2.2billion needed across Central Asia between 2026 and 2040.However,the development andmaintenance ofsurface irrigation systems will continue torepresent the largest investment,with an estimated$3.2billion over the same period.This signifies

227、 that,on average,the irrigation equipment market has the potential togenerate up to$426million annually fordomestic producers inthe region by2030(Table 5).It is reasonable to expect that with full localization ofirrigation equipment would allow tokeep all these investments within the market ofthe Eu

228、rasian region.In the period up to2030,the majority ofirrigation equipment production will be concentrated indrip irrigation andsprinkling systems.Total investments needed to introduce water-saving technologies in CA$6.5 billion for drip irrigation systems$2.2 billion for sprinkler technologies$3.2 b

229、illion for surface irrigation systems$426 million annually domestic producers could generate from the irrigation equipment market by 203039The irrigation equipment market in Central Asia Table 5.Assessment ofinvestments inimprovement ofcrop irrigation techniques andmethods inCentral Asia up to2040Ir

230、rigated lands,asof 2040Investments inthe development ofirrigation methods andtechniques,USD mln.Surface irrigationSprinklersDrip irrigationOther methodsTotal,1,000 ha2026203020312040*2026203020312040*2026203020312040*2026203020262040*Kazakhstan2,700.0*75.0200.0370.01,300.054.0400.016.080.0Kyrgyzstan

231、1,025.025.0100.0100.0100.0114.0360.02.03.0Tajikistan763.020.0100.020.060.020.0300.00.41.2Turkmenistan1,800.050.0400.020.060.015.0350.02.06.0Uzbekistan4,280.5250.02,000.060.0120.0900.04,000.020.050.8Central Asia10,568.5420.02,800.0570.01,640.01,103.05,410.040.4141.0Note:*In Kazakhstan itis planned to

232、increase the area ofirrigated lands up to2,700,000 ha by2050.Source:EDB calculations.03 CLUSTER FORMATION INTHE WATER SECTOR OFCENTRAL ASIA41Cluster formation in the water sector of Central AsiaThe production ofirrigation equipment andrelated parts andmachinery inCentral Asian countries is currently

233、 inits infancy.Despite ongoing initiatives todevelop domestic production ofirrigation equipment andsystems,imports still dominate inCentral Asia.The cluster approach(Delgado et al.,2016),which aims not only todevelop the production ofagricultural andirrigation machinery and equipment,but also to imp

234、rove the competitiveness ofagricultural production inrural regions of CA countries,can be a solution to the shortage or lack ofdomestic production ofirrigation equipment.The geographical proximity ofirrigated areas inthe Central Asian region the Amu Darya andSyr Darya river basins,the Chu andTalas r

235、iver basins is also an advantage forthe formation of agro-industrial clusters.The development oflocal production ofequipment andmachinery forirrigation andwatering will increase the efficiency ofwater resources management in the region,taking into account the organization ofsuch production forlocal

236、conditions,andwill also realize the industrial potential of regions that are exclusively agricultural(Glvez-Nogales,2010).The new generation ofirrigation systems andmachines should be low pressure andprovide high quality irrigation performance.They should be able tooptimize the water delivery algori

237、thm and combine irrigation with the simultaneous delivery ofwater,nutrients,disease,pest andweed control products,soil amendment chemicals,plant growth regulators andphotosynthesis activation.Resource conservation is ensured bysaving water,fertilizers,electricity,fuel during construction,reconstruct

238、ion and operation The joint efforts within the industrial cluster should be aimed at the creation ofhigh-performance andmultifunctional sprinklers andother equipment that implement“precision irrigation”techniques,provide increased reliability,improved working conditions andsafety,application ofnew t

239、echnologies andmaterials,reduction ofmaterial andenergy intensity,unification ofmodules andassembly units.The joint efforts within the industrial cluster should be aimed at the creation ofhigh-performance andmultifunctional sprinklers andother equipment that implement“precision irrigation”techniques

240、,provide increased reliability,improved working conditions andsafety,application ofnew technologies andmaterials,reduction ofmaterial andenergy intensity,unification ofmodules andassembly units.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector42ofirrigation systems usi

241、ng new generation irrigation technologies andby reducing material intensity through new design solutions.Automation ofthe technological process ofirrigation andapplication ofnutrients and other substances allows achieving high technical,economic andqualitative indicators.Control systems should monit

242、or andregulate the water regime toensure optimal moisture reserves inthe soil(Olgarenko andTurapin,2020).International experience inthe development ofclusters inthe agricultural andwater sectors indicates that irrigation clusters should preferably be developed inplaces where water resources are scar

243、ce,inarid regions,inplaces where arable land is concentrated.In general,such clusters are developed inregions with water problems similar tothose inCentral Asia,where water stress inthe Aral Sea basin has increased inrecent years(Vinokurov et al.,2023).In the agricultural complex,the cluster approac

244、h is comprehensively linked towater resources management.It includes agricultural activities related toirrigation,animal husbandry andagro-industrial processes(Aysarova,2023).Clustering inagriculture helps not only toincrease the yield ofcultivated crops,but also tobring acoordinated approach tothe

245、management oflimited water resources forthe sustainable development ofthe agricultural sector andthe region asa whole.There are many successful water andirrigation clusters around the world that contribute tothe efficient use ofwater resources andincrease agricultural yields.The structure ofsuch clu

246、ster formations includes elements of water management,irrigation services,and irrigation equipment manufacturing,aswell asproducers inrelated industries,institutes forscientific development toimprove equipment efficiency,water conservation,andcrop yields,IT technologies,andother activities.Some succ

247、essful irrigation equipment or technology clusters have demonstrated effective internal collaboration,high levels ofinnovation,and significant increases in economic growth within the water andirrigation industry.43Cluster formation in the water sector of Central AsiaThe California Water Agriculture

248、Cluster.While California is perhaps best known forits Silicon Valley andthe development ofa primarily technology industry,the states Central Valley is asignificant agricultural region.An irrigation equipment cluster has developed there,with water technology companies also located inthe area.The comb

249、ined efforts ofuniversities,manufacturers,andfarmers have led tothe development of advanced irrigation technologies,including automatic sprinkler systems,soil moisture sensors,andsmart water management platforms.The success ofthe cluster can be attributed tothe coordinated efforts ofits members,the

250、sharing ofknowledge,andthe political support ithas received.The cluster benefits greatly from its proximity toworld-class research institutions(such asStanford University)andventure capital funding.Notable companies inthe cluster include Xylem,which specializes in water infrastructure solutions,and

251、Ayyeka,a leader inremote monitoring andcontrol systems(including air quality,solar energy,ground andsurface water,etc.).The Water Technology Cluster inthe Netherlands.The Netherlands has along tradition inwater management,shaped byits unique geography(the country is low-lying).The Water Technology C

252、luster brings together a wide range of entities,including companies,research institutes andgovernment agencies.Its members specialize inareas such aswater treatment,desalination,flood control and wastewater treatment.Companies such asRoyal Haskoning DHV andPWN Technologies play akey role inadvancing

253、 sustainable water solutions.The Singapore Water Hub.Despite its limited freshwater resources,Singapore has become aglobal hub forwater technology.The Singapore Water Exchange(SgWX)facilitates collaboration between water companies,investors andresearch institutions.The cluster focuses on water reuse

254、,desalination andsmart water technologies.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector44Israel Water Technology Cluster.Israels arid Negev Desert has become one ofthe worlds centers forirrigation technology.The Negev Desert Cluster has brought together research in

255、stitutes,start-ups andestablished companies todevelop advanced irrigation solutions.The collaboration between academia,industry andgovernment has led toinnovations such asdrip irrigation systems,precision farming,water-saving sensors andsmart water management systems.The cluster includes companies s

256、uch asIDEXX,which specializes inwater quality testing,andTal-Ya Agriculture Solutions,known forits efficient irrigation systems.Indias water equipment manufacturing cluster is located in Coimbatore,Tamil Nadu,home to a vibrant cluster ofirrigation andwater supply equipment manufacturers.These includ

257、e EKKI Pumps and Sharp Pumps,which manufacture water pumps,filtration systems andirrigation equipment.Advantages of the cluster include a skilled workforce,research institutes,anda favorable ecosystem.In addition,the city andregion specialize inthe moisture-intensive cotton andtextile industries,wit

258、h Coimbatore being referred toas the“Cotton City”or“Indias Manchester.In general,successful global clusters in the water andirrigation sector share similar characteristics.These include joint efforts of different stakeholders(science,production,consumers,government)that ultimately lead toimproved wa

259、ter management andincreased crop yields indifferent regions ofthe world.Based on the successful international experience,the characteristics ofa successful irrigation equipment cluster inCA should be continuous innovation andinternationalization of business.Continuous technological improvement ofman

260、ufactured equipment andentry ofproducts into export markets will allow the realization ofsuch cooperative projects inCA.In addition,supporting acluster initiative inagricultural machinery(irrigation equipment)can also be an effective tool fordeveloping the value chain ofregional agricultural product

261、s(Sonobe and Otsuka,2006).In addition,the irrigation equipment cluster initiative inCA will facilitate the access oflocal farmers,including smallholders,tocredit,quality inputs andtechnological equipment(Otsuka,Zhang,2021;Bizikova et al.,2020).04 INDUSTRIAL CLUSTERS ANDCRITERIA FORTHEIR ESTABLISHMEN

262、T ANDFUNCTIONING INCENTRAL ASIAIrrigation Equipment Production in Central Asia:Industrializing the Water Sector46General principles ofcluster developmentThe classic definition ofan economic“cluster”asoutlined byMichael Porter(1998)is a group of interrelated firms,specialized suppliers,service organi

263、zations,firms inrelated industries,andrelated institutions andorganizations(e.g.,universities,standards agencies,andtrade associations)that both compete andcooperate with each other.Box 1.The concept of“cluster”One ofthe first definitions ofan economic cluster was provided byAlfred Marshall inthe la

264、te 19th century.At that time,closely located enterprises were called“industrial districts”(Mikhaltsov,2014).In such formations,the intensity ofcommunication andinteraction among workers increased,which led tothe flow andrapid diffusion ofnew ideas,improved production processes,andstrengthened close

265、ties between firms.In the future,the growth ofglobalization,increased competition,andintensified scientific andinnovative development contributed tothe emergence ofnew regional formations.One ofthe most notable examples ofsuch regional formations with astrong concentration ofscientific andproduction

266、 actors is Silicon Valley inthe USA.The widespread development ofsuch regional formations invarious global economic hotspots has provided anew perspective on the issue ofscientific-innovative andeconomic development ofindividual regions.To date,researchers have distinguished numerous types ofcluster

267、s.Among them,industrial clusters,which also have their own classification bystructure andforms ofdevelopment,are ofparticular interest forthe development ofirrigation equipment production inthe Central Asian region(Yachmeneva andYachmenev,2017).Industrial clusters are regional clusters consisting of

268、 a group of geographically concentrated enterprises of one or several related industries and supporting institutions,located in a certain region.The main component of such clusters is a concentration of industrial enterprises.The infrastructure ofa standard industrial cluster typically includes at l

269、east one educational institution,two technological infrastructure facilities,one non-profit or public organization,andone financial organization.These clusters also include at least ten industrial enterprises that work in close cooperation.Of these,one company serves as the“final production”stage of

270、the production cycle.In addition,additional criteria have been set forthe level ofmandatory industrial cooperation.These stipulate that at least 20%ofthe industrial products produced byeach participant should be consumed or processed 47Industrial clusters and criteria for their establishment and fun

271、ctioning in Central Asiawithin the cluster.The majority ofresearchers state that the entity responsible forinitiating an industrial cluster andoverseeing cluster projects should be aspecialized organization comprising agroup ofindustrial enterprises with cooperative ties within the cluster.This busi

272、ness approach will facilitate the nascent clusters transition toa subsequent growth phase.Figure 4.Industrial cluster structureSuppliersConsumersIndustrial clusterIndustrial cluster management systemA specialized industrial cluster organization,whose mandate includes the creation offavorable conditi

273、ons forthe implementation ofcluster projects,administrative management ofcluster infrastructure facilities,coordination ofcooperation relations between cluster enterprisesIndustrial enterprises producing intermediate productsEducational institutionsTechnological infrastructure facilitiesIndustrial e

274、nterprises producing endproductsFinancial institutionsPublic/nonprofit organizationsIndustrial enterprise groupInfrastructure ofindustrial clusterSources:EDB andUNIDO estimates.The analysis of examples of cluster formation in world practice generally suggests that each country andregion creates clus

275、ters that take into account sectoral andlocal specificities.Studies on clusters do not provide aclear picture ofthe key factors ofsectoral clustering inspecific territorial formations.What distinguishes successful clusters is their successful symbiosis ofdifferent factors.The most important ofthem i

276、s the high interest ofthe state insmall andmedium-sized enterprises asthe drivers ofthe countrys economic development.The international experience of cluster development indeveloped countries shows that most ofthem are formed at the regional level.One ofthe defining characteristics ofclusters organi

277、zed on the regional principle is the uniqueness ofthe internal environment,infrastructure andecosystem ofa given region.Competitive advantages ofterritories through integration can result from clustering.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector48Clustering is

278、an effective tool of sectoral competition at the international level.In the context ofglobalization and increasing regionalization of the world economy(Kostyunina,2020),itcould be argued that clusters are the engines ofregional competitiveness on aglobal scale.In such atransformation ofmarkets,the i

279、mportance ofthe cluster concept of development of national economies among developing countries will undoubtedly increase.The cluster approach is adistinctive feature ofdeveloping countries asit facilitates intensive economic growth through innovative development and diversification of economic acti

280、vities inthe region.This approach can serve asa basis foreconomic growth andprovide asignificant economic boost.The experience of cluster development in developed countries inmodern conditions indicates that the increase incompetitiveness ofregions is due tothe development ofinnovation clusters.Inno

281、vation clusters are understood asa mechanism ofeconomic interaction between enterprises,providing them with effective business models ofa certain specialization,based on the systemic interaction ofall participants inthe process ofvalue creation,starting from research anddevelopment tothe formation o

282、fan innovative product(Ibragimova andGolovkin,2019).Figure 5.Global distribution ofscience andtechnology clustersSource:WIPO Statistics Database.Clustering is an effective tool of sectoral competition at the international level.In the context of globalization and increasing regionalization of the wo

283、rld economy,it could be argued that clusters are the engines of regional competitiveness on a global scale.49Industrial clusters and criteria for their establishment and functioning in Central AsiaIt can be observed that effective clusters,in the role of instruments concentrating high indicators of

284、labor productivity and S&T potential in one place,are more common in the most developed countries.The Global Innovation Index(WIPO,2023)shows that the most prominent S&T clusters inthe world are located inJapan,particularly inthe Tokyo-Yokohama region.This is followed byclusters inChina andHong Kong

285、,including Shenzhen-Hong Kong-Guangzhou,Seoul inthe Republic ofKorea,andother Chinese clusters,including Beijing andShanghai-Suzhou.In terms ofthe number ofclusters represented inthe top 100,China(24clusters),the United States ofAmerica(21),Germany(9)andJapan(4)lead the way.It should be noted that t

286、he Central Asian countries are not among them.Global experience shows that industrial clusters can be established on the basis of existing and efficient enterprises and objects of innovation and industrial infrastructure,including special economic zones(SEZs),industrial parks,advanced development te

287、rritories(ADTs),technology parks,business incubators and accelerators,and othersIrrigation Equipment Production in Central Asia:Industrializing the Water Sector50The establishment ofSEZs creates special legal regimes that attract new businesses andcreate specialized jobs.Inthe absence ofa critical m

288、ass ofenterprises andalready established manufacturers ofirrigation equipment,the organization ofa cluster on the basis ofsuch SEZs can act asa kind ofinitial incentive tonurture acritical mass ofindustrial enterprises.At the initial stage offormation ofthe first production enterprises ina new indus

289、try,itis possible tostimulate their emergence byoffering them special privileges andpreferences.There is no single,universal formula forsuccess incluster development,but itis possible toidentify several general characteristics ofthe global clustering experience:The creation ofclusters is atool forth

290、e development ofcountries andregions andan indicator ofthe transition ofthe economy toa qualitatively new level ofdevelopment.The peculiarity ofa cluster is the synergetic effect ofits member organizations,which is expressed inthe increased competitiveness ofthe whole system incomparison with indivi

291、dual economic entities.The system is different from individual economic entities.The specific feature ofthe cluster is its innovative orientation.The cluster policy is based on the organization ofinteraction between authorities,enterprises,scientific andeducational institutions inorder tocreate driv

292、ers ofinnovative development ofthe regions andto achieve synergy effect with the possible support ofinternational financial institutions.Cluster initiatives inCentral AsiaIn the latter economies,this is due tothe greater autonomy ofregions andtheir economic potential.As aresult,clusters indeveloping

293、 countries are classified asnational clusters,with asignificant amount ofsupport coming from central government agencies.In developing countries,cluster development occurs at the national level,in contrast to more developed economies where such initiatives are more regional in nature.51Industrial cl

294、usters and criteria for their establishment and functioning in Central AsiaThis is also evident in Central Asian countries,where the majority of cluster development plans are set out inregulatory legal documents at the national level.However,the approach tocluster development varies across the regio

295、n,with different countries adopting different strategies.In Kyrgyzstan,forexample,cluster initiatives are reflected inthe“Concept ofRegional Policy ofthe Kyrgyz Republic for20232027”.In Kyrgyzstan,the development ofclusters andtheir definition are considered more important inthe classical sense asde

296、fined byM.Porter asan effective tool forthe development ofthe countrys territories based on the principles ofeconomic specialization.The concept ofcluster development inKyrgyzstan has been inforce since March 24,2022,after the approval ofthe project“Lending tothe agro-industrial complex”.The program

297、 ofcluster development ofagriculture is considered necessary toensure food security with the aim ofincreasing the production ofagricultural crops.The project is expected toprovide soft loans tofarmers with atotal budget of17billion soms($190million).Tajikistan has established cluster development goa

298、ls within the framework ofthe“National Development Strategy ofthe Republic ofTajikistan forthe period up to2030”(adopted in2016).According tothe strategy,the second stage begins with the accelerated development ofthe economy based on investment(between 20212025).The aim is toachieve the goals set in

299、Tajikistan,which includes increasing the competitiveness ofthe national economy,its integration into global andregional value chains,andthe development ofthe countrys regions.The underlying philosophy ofcluster development is tosignificantly increase investments inthe real sector andinfrastructure w

300、ith the participation offoreign anddomestic investors.The priority sectors ofthe economy within the framework ofclustering include the agro-industrial complex,industry,education,transport and logistics,and the creative economy.The development ofcluster initiatives inthese sectors is seen asan opport

301、unity tocreate competitive production chains with the aim ofimport substitution andincreased exports.Cluster initiatives are not yet operational inthe territories ofthese CA countries.The strategic approach tocluster development is based on the symbiosis of existing enterprises andthe aspirations of

302、the state,aswell asvarious memoranda ofcooperation.Irrigation Equipment Production in Central Asia:Industrializing the Water Sector52In the first stage(20032005)M.Porter was the scientific consultant ofcluster development inKazakhstan.During this period,the strategy ofindustrial andinnovative develo

303、pment ofthe Republic ofKazakhstan for20032015 defined the cluster asa form ofproduction organization inthe country.A list ofseven promising clusters was identified metallurgy,transport logistics,textile industry,tourism,oil andgas,engineering,construction materials andfood industry.During the second

304、 stage(20052012)ofcluster formation anddevelopment,adocument was adopted Resolution ofthe Government ofthe Republic ofKazakhstan No.633 dated June 25,2005“On Approval ofPlans forCreation and Development of Pilot Clusters in Priority Sectors ofthe Economy”.According tothis decree,organizational and e

305、conomic bases for the functioning of clusters were developed.As a result,in 2006 the government approved plans forthe creation anddevelopment ofa pilot pharmaceutical cluster inKaraganda anda medical services cluster based on new centers inAstana.In general,this period saw the formation ofcluster mo

306、dels based on centers ofeconomic attraction.The third stage(since 2013)was marked bythe adoption ofa separate concept forthe formation ofpromising clusters ofthe Republic ofKazakhstan until 2020.At the same time,already in2014,within the framework ofthe Decree ofthe President ofthe Republic ofKazakh

307、stan#874“OnApproval ofthe State Program ofIndustrial andInnovative Development ofthe Republic ofKazakhstan for20152019”(hereinafter SPIID)dated August 1,2014,the national approach tothe formation and development of clusters was developed.The purpose of the development of cluster initiatives is Kazak

308、hstans clustering andexperience inthe development ofterritorial clusters stands out among the countries ofthe region.Since the early 2000s,Kazakhstan has been implementing market reforms toliberalize economic activity,diversify production,andincrease the innovation component ofthe economy.Various re

309、forms have been introduced,particularly inthe industrial sector,anda solid infrastructure has been created.In turn,the authorities recognized the need forprogressive forms ofproduction organization forthe innovative development ofthe national economic system.Since then,there has been an active proce

310、ss ofcluster formation anddevelopment,which can be divided into three stages.53Industrial clusters and criteria for their establishment and functioning in Central Asiatopromote the growth ofcompetitiveness ofthe domestic manufacturing industry through the creation andlocalization of technological ch

311、ains,cooperation,development ofintegration andacceleration ofinnovative development.At present there is an active development ofcluster initiatives inthe country;the introduction ofthe state policy on the development ofcluster initiatives is carried out everywhere.Cluster initiatives are being devel

312、oped,which are divided into two groups the national cluster inWest Kazakhstan(petrochemicals)andsectoral territorial clusters.As part ofthe development ofterritorial clusters,six pilot clusters were selected on acompetitive basis:the flour-milling cluster inthe Kostanay oblast,the tourism cluster in

313、 the Almaty area(Almaty city andAlmaty oblast),the construction cluster inthe Karaganda oblast,the furniture cluster inthe Almaty city,the milk-processing cluster inthe Akmola oblast,the pharmaceutical cluster inthe Turkestan oblast.Irrigation Equipment Production in Central Asia:Industrializing the

314、 Water Sector54All six pilot territorial clusters are holders ofthe bronze label according tothe results ofthe expert evaluation ofthe European Secretariat forCluster Analysis(ESCA)1 operating under the European Union(EU),which allows them toregister on the EU cluster platform andparticipate incompe

315、titions forgrants from the EU.To date,cluster development after the completion ofthe SPIID 20152019 has been reflected inthe Law ofthe Republic ofKazakhstan“OnIndustrial Policy”dated 27 December 2021.It is expected that the country will add another group ofinnovation clusters bythe 2050s.For the suc

316、cessful implementation of cluster initiatives inKazakhstan,the operator ofterritorial clusters at the national level was identified JSC“Kazakhstan Industry andExport Centre“QazIndustry”(formerly JSC“Kazakhstan Institute of Industrial Development”),a subordinate organization ofthe Ministry ofIndustry

317、 andConstruction ofthe Republic ofKazakhstan.In addition,an agreement was signed in2016 between the Ministry ofthe National Economy andthe Spanish consulting company INFYDE LTD toprovide services forthe implementation ofcluster policy inKazakhstan.The European Foundation forCluster Excellence andThe

318、 Cluster Competitiveness Group Inc.were engaged toprovide consulting services forcapacity building ofcluster policy operators inKazakhstan(QazIndustry,2017).For example,the national operator regularly organizes seminars inthe countrys regions toimplement cluster policy.The regions are provided with

319、materials andanalyses ofthe status andprospects forthe development ofcluster initiatives intheir locations.In other CA countries,such events are not yet organized andthere are no officially recognized cluster initiatives.1 ESCA(European Secretariat forCluster Analysis)brings together leading cluster

320、 analysis experts from around the world.ESCA uses aportfolio ofmore than 800clusters from 40 European countries forcomparative analyses.Work on the active development ofcluster initiatives inKazakhstan continues tothis day.55Industrial clusters and criteria for their establishment and functioning in

321、 Central AsiaThe digitalization program can be an advantage forthe development ofinnovative projects inthe irrigation cluster.Globally,the digitalization ofindustrial production andagriculture is underway,with significant changes inthe way products are manufactured,consumed,andfood grown.Digitalizat

322、ion inindustry leads toincreased innovation activity inthe country andthe emergence ofnew innovative products,while inagriculture itleads toa reduction incosts andan increase inthe productivity ofcultivated land.Reflecting these andother changes,the global network ofFourth Industrial Revolution Cent

323、ers continued toexpand during 20222023 to19 such centers,each with its own areas ofactivity(WEF,2023).In Kazakhstan,asimilar affiliated Fourth Industrial Revolution Center was opened inJuly 2021 at the Astana International Financial Center incooperation with the Ministry ofDigital Development andAer

324、ospace Industry ofthe Republic ofKazakhstan.It started functioning inSeptember 2021 andheld online sessions(round tables)with WEF experts.Box 2.Industry 4.0 andKazakhstans participation inthe global network ofthe Fourth Industrial Revolution CentersKazakhstan is amember ofthe Global Network ofCenter

325、s ofthe Fourth Industrial Revolution under the signed agreement between the Government ofthe Republic ofKazakhstan andthe World Economic Forum(WEF),approved byResolution ofthe Government ofthe Republic ofKazakhstan No.894 of25 December 2020.The WEF is one ofthe worlds leading organizations promoting

326、 and supporting the development of the Fourth Industrial Revolution.It was the WEF that established the global network ofFourth Industrial Revolution Centers,which brings together global companies,governments,start-ups,SMEs,academia,andinternational organizations from around the world tocollaborate

327、innine innovation areas:artificial intelligence andmachine learning,the Internet of Things,robotics and smart cities,block chain anddistributed ledger technology,autonomous andurban mobility,drones,andthe airspace oftomorrow.Launched in2017,the global network ofcenters has affiliate centers inthe Un

328、ited States,China,Israel,India,Japan,andthe United Arab Emirates.The Center forthe Fourth Industrial Revolution can be designed tohelp the Irrigation Cluster on the path ofinnovative development bycreating astrategic platform forthe adaptation andimplementation ofadvanced technologies andthe formati

329、on ofnew types ofproduction that are Irrigation Equipment Production in Central Asia:Industrializing the Water Sector56competitive inglobal markets.The work ofsuch acenter forthe irrigation cluster can also be useful forgenerating practical knowledge about new andemerging technologies,improving gove

330、rnance to ensure the safety,ethics,andreliability oftechnologies,anddeveloping mechanisms toprevent collateral damage.In almost all CA countries,the experience ofclustering shows the involvement ofSEZs.In one form or another,cluster development is promoted through the development ofsuch forms ofinfr

331、astructure formation with access to“hard”infrastructure anda package ofbenefits andpreferences inthe form oftax deductions,customs exemptions,andother incentives.Limited financing forSMEs andunderdeveloped venture capital markets inCentral Asia constrain the growth ofinnovative firms.In addition,the

332、 high barriers tobusiness creation observed inmost CA countries also have anegative impact on the level ofcompetition innational markets,which inturn affects the productivity andinnovation potential ofthe countrys industries and,ultimately,the formation offull-fledged clusters.Since the production o

333、firrigation equipment is currently limited toKazakhstan,an additional approach could be toimplement projects inan Industrial Zone(IZ)or Special 57Industrial clusters and criteria for their establishment and functioning in Central AsiaEconomic Zone(SEZ),where infrastructure,services,anda favorable policy environment will facilitate the development ofirrigation production.The main objective ofan IZ/