BMI View: The worsening macro outlook for Central Asia will compound the issue of water supplies in theregion. This in turn poses a major risk - not only to our 2015 growth outlook for the region's politicalstability and economic growth forecasts - but also impacts Kazakhstan's water availability over the comingyears. While this presents advantages to water infrastructure groups as we expect it to stimulate heavyinvestment into the country's supply and sanitation facilities, it poses significant risks to water andsanitation utilities, which face declining supplies, increased costs and the possible cessation of suppliesshould water scarcity become more severe.
The greatest issue in Kazakhstan continues to be that of water scarcity in many regions. However, althoughthere are some developments in the more stringent billing for and metering of water consumption, over thelonger term we believe the country will need to look to alternative water resources, particularly recycledwater. That said, the improvement of existing wastewater treatment, collection and redistributioninfrastructure will be hampered over the short-to-medium term by the current regional tensions andeconomic uncertainty.
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