Regions and Countries

	Table of Contents
p. 18 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies 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

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VII. ADB’s Operational Program

A. The Proposed Program

46. ADB’s operations are proceeding well and the Government takes a keen interest in implementing projects on time. Its determination to take difficult policy decisions particularly relating to sectoral adjustments can be seen from ADB-assisted interventions in the road, power, agriculture, finance, and education sectors and for improving corporate governance. Both the Government and ADB can look back with some satisfaction to the operations that have grown from one loan each of $40 million in 1994 and 1995 to three loans amounting to $72 million in 1999. Lending levels to the Kyrgyz Republic will depend principally on (i) ADF availability; (ii) the Government's adherence to the macroeconomic stabilization and structural reform program; (iii) the satisfactory performance of the ongoing projects in the Kyrgyz portfolio; and (iv) the availability of counterpart funds. Due to ADB's ADF resource constraints since 1998, the annual lending indicative planning figure (IPF) for the Kyrgyz Republic was reduced from $80 million to $70 million. In view of the Kyrgyz Republic's excellent track record in carrying out reforms and in implementing ADB-financed projects, the cut in the annual lending IPF was less than in some other ADF-recipient DMCs. As may be seen from the operational program for 2000-2003 the requirements for ADB financing some times exceed the annual lending IPF of $70 million. Adjustments would have to be made each year to fit the lending program within the ADF resources available. Further, the country’s debt problems and budget constraints will be carefully assessed in deciding future lending programs.

47. The proposed loan and TA pipeline for 2000-2003 is summarized in Table 1. The details are in Appendix 4. Project profiles for firm 2001 loans are attached as Appendix 6.

B. Strengthened Role of ADB’s Resident Mission

48. Following the approval of the new Resident Mission policy, ADB is reinforcing the capacity of its Kyrgyz Resident Mission (KYRM) to further strengthen its operations in the country. KYRM started functioning in Bishkek from 2 April 2000. The number of KYRM staff was increased and the office facilities have improved significantly. During 2001-2003, KARM will be provided with sufficient qualified staff and infrastructure to achieve its expanded functions. These functions include (i) government, civil society, and private sector relations; (ii) policy dialogue and support; (iii) economic and sector work and country reporting; (iv) aid coordination; and (v) external relations and information dissemination.

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