Regions and Countries

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture and Rural Development B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Kyrgyz Republic : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

35. ADB operations in the Kyrgyz Republic have focused on supporting the transition from the former central planning structures toward rapidly building institutions based on market economy principles. ADB TA and lending operations in the agriculture, energy, road transport, and social sectors have incorporated a substantial program of institution building. ADB assistance has been provided to support strengthening of economic policy making and monitoring capabilities in key government agencies. Besides improving the organizational structure of the agencies, the assistance provides for strengthening their capacity to analyze economic issues, make appropriate policy prescriptions, and monitor the progress and impact of policy reforms.

36. A key area of ADB assistance is support for corporate governance and enterprise reform, which is designed to reform the policy and legal environment, to strengthen the competitiveness of public and private enterprises, and improve their management. Major components are development of a model company charter for medium and large enterprises, assistance in expediting the liquidation and restructuring of nonviable enterprises, and increased transparency and greater stakeholder commitment of the restructuring process through public information and education. In addition, state-owned and private enterprises have been cut off from subsidized loans from the budget and now must access credit provided by commercial banks, without government guarantee.

37. In the roads sector, ADB operations have supported market liberalization by providing for increased competition between the public and private sectors. In the energy sector, ADB assistance has been provided to enhance cost recovery by strengthening the capacity of concerned agencies to prepare cost-based tariffs for electricity and district heating. A financial sector program supported by the ADB will improve governance by supporting the development of a resilient, well functioning, and properly regulated and supervised financial sector. The program also aims at bringing about increased transparency and a greater role for market forces in the banking sector. In the education sector, ADB assistance has supported (i) developing an education and training master plan to better align policy and planning with the needs of the emerging market economy; and (ii) efficiency improvements and cost recovery.

38. Other capacity-building assistance has been provided to water users associations and for environmental management, while the pipeline proposes further assistance in agriculture, education, and roads. ADB has an ongoing program of in-country workshops on procurement and disbursement procedures in order to familiarize government officials with best practices in transparent and efficient project implementation. To facilitate widespread dissemination, ADB’s guidelines on procurement and consultant selection have been translated into Russian as has the anti-corruption policy. Officials from the Kyrgyz Republic have participated in an ADB workshop on improving taxation systems and in a program of regional TA for Central Asian economies in transition designed to build capacity in project accounting, improve macroeconomic analysis for key policy makers, strengthen rural finance, and improve economic analysis of projects.

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