Kyrgyz Republic: Investment Climate Improvement Program System Support Project

Sovereign Project | 41544-072

Summary

The Project aims to reduce the cost of doing business by streamlining business registration process and export and import clearance procedures. Specifically, the Project will support the establishment of a one-stop shop for business registration and a pre-customs single window for export and import clearance. The Project will have the following main components.

1. One-Stop Shop Business Registration. The Project will support the implementation of an automated one-stop shop that will allow all registration formalities to be completed in MOJ. This will significantly reduce the time taken to register a business (from 21 days to 3 days), and will reduce the uncertainty associated with the approval process. A summary of the one-stop shop blueprint is in Supplementary Appendix A.

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Project Name Investment Climate Improvement Program System Support Project
Project Number 41544-072
Country Kyrgyz Republic
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0121-KGZ: Investment Climate Improvement Program System Support Project
Asian Development Fund US$ 2.90 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Finance sector development
Gender Equity and Mainstreaming
Description

The Project aims to reduce the cost of doing business by streamlining business registration process and export and import clearance procedures. Specifically, the Project will support the establishment of a one-stop shop for business registration and a pre-customs single window for export and import clearance. The Project will have the following main components.

1. One-Stop Shop Business Registration. The Project will support the implementation of an automated one-stop shop that will allow all registration formalities to be completed in MOJ. This will significantly reduce the time taken to register a business (from 21 days to 3 days), and will reduce the uncertainty associated with the approval process. A summary of the one-stop shop blueprint is in Supplementary Appendix A.

2. Pre-Customs Single Window. The Project will support the implementation of a pre-customs single window to enable businesses to submit applications and receive permits and certifications for exports and imports through a single channel. Currently, pre-customs clearance requires at least 12 separate approvals and about 25 days clearance time. By streamlining and harmonizing regulations and automatic processes, the pre-customs single window will enable businesses to obtain clearances within 5 days and through a single administrative document

Project Rationale and Linkage to Country/Regional Strategy
Impact Streamlined business registration and pre-customs clearance processes
Project Outcome
Description of Outcome Automated business registration and pre-customs clearance processes operational
Progress Toward Outcome

Integrated system for business registration has been developed, and is now functioning in all departments of the Ministry of Justice. As of May 2012, more than 2,500 legal entities have been registered through the new system. Database of existing legal entities has been posted on the web-site www.minjust.gov.kg.

Information system for pre-customs single window was completed and tested, and ICT and network equipment installed. The single-window system can be accessed by traders and relevant government agencies through web-interface. A pilot with 10 firms was initiated in June 2012.

Implementation Progress
Description of Project Outputs

IT system for business registration completed.

IT system for pre-customs clearance completed.

Status of Implementation Progress (Outputs, Activities, and Issues)

New integrated system for business registration is functioning since Dec 2011.

New single-window system was completed and tested in 1H 2012.

Geographical Location Kyrgyz Republic
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations conducted with the Ministry of Economic Development and Trade (now Ministry of Economic Regulation (MER)), Ministry of Finance, Ministry of Justice, National Bank of the Kyrgyz Republic and State Customs Service.
During Project Implementation International and national experts, the project technical cell at MER, MER, Ministry of Finance, Ministry of Justice, National Bank of the Kyrgyz Republic, State Customs Committee, business associations, and donor organizations.
Business Opportunities
Consulting Services A total of 11 person-months of international consulting services and 24 person-months of national consulting services will be required. The consultants will be recruited on an individual basis in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time), and procedures for recruiting individual consultants.
Procurement The project technical cell, through MEDT, will be responsible for procurement of all equipment and services under the project component. All equipment and services to be financed under the grant will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Procurement of goods, equipment, materials and services costing between $0.10 million and $0.50 million will be procured through national competitive bidding in accordance with the Borrower's procurement procedures, subject to modifications and clarifications to such procedures. Procurement valued below $0.10 million will be procured through the shopping method. Limited international bidding will be used for procurement of items that may not be available in Kyrgyz Republic and whose amounts are not large enough to attract foreign suppliers through international competitive bidding or if there are only a limited number of suppliers.
Responsible ADB Officer Ruben Barreto
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Economic RegulationSanjar MukanbetovSMUKANBETOV@MVTP.GOV.KGMinistry of Economic Regulation
Timetable
Concept Clearance 31 Jul 2008
Fact Finding 23 May 2008 to 20 Jun 2008
MRM 04 Nov 2011
Approval 03 Nov 2008
Last Review Mission -
PDS Creation Date 02 Feb 2009
Last PDS Update 20 Jul 2012

Grant 0121-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Nov 2008 24 Nov 2008 18 Dec 2008 31 Dec 2010 31 Jan 2012 09 Aug 2012
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.63 Cumulative Contract Awards
ADB 2.90 03 Nov 2008 2.11 0.00 73%
Counterpart 0.73 Cumulative Disbursements
Cofinancing 0.00 03 Nov 2008 2.11 0.00 73%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Investment Climate Improvement Program System Support Project Project/Program Completion Reports Jun 2013
Grant Agreement for ICIP System Support Project between Kyrgyz Republic and ADB dated 24 November 2008 Grant Agreement Nov 2008
Investment Climate Improvement Program Reports and Recommendations of the President Oct 2008
Investment Climate Improvement Program Design and Monitoring Frameworks Jul 2008

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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