Assessing the enabling environment for investment in water security in the EU’s Eastern Partner Countries
Abstract
This report summarises findings from the OECD’s Scorecard assessment of the enabling conditions for investment in water security in the EU’s Eastern Partnership countries (Armenia, Azerbaijan, Georgia, Moldova, and Ukraine). Conducted under the EU-funded EU4Environment – Water Resources and Environmental Data programme, the assessment highlights commonalities in access to infrastructure services and regulatory frameworks, alongside variations in resource endowments and progress towards EU accession. Over the past two decades, each country has established policy foundations for water investment and management, though the maturity of key enabling factors varies. Recurring challenges include uneven enforcement of economic instruments and wastewater standards, and significantly limited planning capacity, leading to high levels of non-revenue water. While some major urban utilities have attracted private finance, smaller and rural providers face constraints in project preparation and regulatory compliance. Looking ahead, leveraging EU accession experiences, developing coherent national investment plans, strengthening enforcement of economic and regulatory tools, and exploring diversified financing, including climate and nature-based approaches, could enhance the region’s capacity to mobilise sustainable water security investments.
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