Home 
Publications Online Publications Document
|
Seminannual Report on Project Administration and Technical Assistance Implementation for the Period Ending 30 June 1999 : Country Implementation Highlights
Kyrgyz RepublicThe number of ongoing loans decreased to 10 as no loan was approved and one retroclosed during the period. All but one of the loans were rated satisfactory in terms of both implementation progress and achievement of development objectives. One loan was partly satisfactory in terms of implementation progress, due mainly to the weak financial performance of the EA, the National Power Utility. One loan approved during the second half of 1998 was declared effective during the period, while one was signed but awaiting effectiveness. No loans underwent changes in project scope or implementation arrangements. The Bank's portfolio of projects and programs are in the early stages of implementation. Implementation of the loans and TAs is proceeding on schedule, and no major problems have been experienced. TAs to enhance capacity in economic policy making and monitoring, education planning and administration, and environmental management are proceeding well. At the Government's request, the Bank included support for reforms in the financial sector through a program loan and this is presently being processed. Under the Corporate Governance and Enterprise Reform Program, significant progress was made in the implementation of sound corporate governance principles and standards in public and private sector enterprises, and adequate capacity was developed through the accompanying TA loan. The Government took important steps to strengthen the environment for enterprise restructuring through enactment of appropriate bankruptcy legislation. In the light of this, the second (final) tranche was being released. Due to the financial crisis that befell Russia in 1998, the Power and District Heating Rehabilitation Project suffered from lack of counterpart funding. An action plan for 1999-2000 for the financial recovery and restructuring of the State Energy Agency, Kyrgyz Energo (KE), was agreed upon in January 1999 among KE and the major lenders to KE (the Bank, International Development Association, and European Bank for Reconstruction and Development). The plan includes measures to reduce losses, increase collections and tariffs, strengthen financial management, and restructure KE. Due to severe economic difficulties resulting largely from the adverse effect of the Russian crisis, the Government's budget and counterpart funds became seriously restricted. In response, the Bank mounted revolving missions (every other month) to ensure close consultations with the Government and timely implementation of projects. In June, the Bank also approved establishment of a RM in the Kyrgyz Republic early next year. Contract awards and commitments reached $61.1 million, or 146 percent of the semiannual projection of $41.7 million and 86 percent of the annual projection of $70.8 million. This achievement is mainly due to the commitment from the Corporate Governance and Enterprise Reform Program loan. Disbursements of $13.0 million represent 170 percent of the semiannual projection of $7.7 million and 24 percent of the annual projection of $54.8 million. The high semiannual achievement is due to higher than expected disbursements from the transport sector. The disbursement ratio decreased from 17.6 percent as of 30 June 1998 to 8.9 percent against the Bankwide average of 11.9 percent during the period. There were no disbursements from program loans (disbursement from the Corporate Governance Enterprise Reform Program loan was delayed by a day). Net resource transfer decreased from $21.9 million as of 30 June 1998 to $12.2 million as of 30 June 1999 due to low disbursements. Audited project accounts and financial statements were due for four loans. Compliance was met for two but compliance for the other two was delayed by less than six months. Compliance with the environmental covenants was met for two loans, while compliance was in progress for one loan. The environmental covenants did not apply to the remaining seven. Compliance with the social covenants was in progress for three, but was not applicable to the rest of the loans. Tables 35 and 36 summarize the data for the Kyrgyz Republic.  
|
RSS Feeds
Back
Top of page