The Kura-Aras river system is critical to sustainable development of the South Caucasus countries - Armenia, Azerbaijan and Georgia as well as the two upstream countries - Iran and Turkey. The rivers run into and impact the Caspian Sea, therefore affecting all communities using the Sea. Regional cooperation is a key long-term aim of all five countries, and cooperation on shared water resources is an intrinsic component of such cooperation.

The overall project objective is to ensure that the quality and quantity of the water throughout the Kura-Aras river system meets the short and long-term needs of the ecosystem and of the communities using the ecosystem. During the PDF stage, the proposed project will prepare a draft Strategic Action Programme (SAP) which will set solid foundations for a long-term, regional, fully integrated and comprehensive approach to management of the Kura-Aras rivers.

Following on from this, the full GEF project will support SAP implementation through a series of policy, institutional and legislative reforms at regional and national level, as well as lending incremental support to key, on-the-ground, pilot projects within the SAP. Regional management mechanisms will be operationalised, and management tools developed. Priority soft and hard investments will be designed and implemented ? some as demonstrations.

Sustainable financial and institutional arrangements for long-term management of the rivers will be established, including possibly the mobilisation of public and private sector funding to implement the SAP. Reforms will be initiated in key polluting or withdrawing sectors.