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Kyrgyz Republic and ADB

ADB’s country operations business plan, 2021–2023 for the Kyrgyz Republic focuses on supporting inclusive growth and economic diversification beyond the COVID-19 pandemic, improving access to public and social services, and leveraging regional cooperation and integration.

ADB's Work in the Kyrgyz Republic

ADB Membership

Joined 1994

Shareholding and Voting Power

Number of shares held:
31,746 (0.298% of total shares)

Votes:
70,860 (0.533% of total membership, 0.818% of total regional membership)

Overall capital subscription:
$457.23 million

Paid-in capital subscription:
$22.87 million

The Kyrgyz Republic joined the Asian Development Bank (ADB) in 1994. In recent years, the Government of the Kyrgyz Republic has maintained a strong development agenda to reduce poverty through inclusive economic growth.

With the support of ADB, the government has sought to strengthen the health sector, reinforce social protection, reform legal and regulatory frameworks, improve the country’s business environment, make affordable finance available to all, improve the reliability of electricity services, and help Kyrgyz citizens become more employable.

Overlooking view of Bishkek, the Kyrgyz Republic's capital and largest city

ADB was among the first development partners to help the Kyrgyz Republic mitigate the significant socioeconomic impacts of global, regional, and national macroeconomic shocks arising from the coronavirus disease (COVID-19) pandemic.

Since 1994, ADB has committed 50 loans ($1.33 billion), 46 grants ($811 million), and 105 technical assistance projects ($69 million) for the Kyrgyz Republic.

Cumulative loan and grant disbursements to the Kyrgyz Republic amount to $1.4 billion. These were financed by regular and concessional ordinary capital resources and the Asian Development Fund.


ADB-Supported Projects and Programs

In March 2020, ADB allocated $200,000 to the Kyrgyz Republic via the United Nations Children’s Fund (UNICEF). This assistance helped supply high-quality personal protection items and critically needed equipment such as oxygen generators and ventilators during the peak of the pandemic in April–July 2020.

Two months later, ADB allocated another $764,200 to finance priority needs of the Kyrgyz Republic’s health system.

In May 2020, ADB committed $50 million for the Kyrgyz Republic under its COVID-19 Active Response and Expenditure Support Program, and these funds were disbursed in June. This assistance focused on supporting government efforts to cushion the social and economic impacts of the pandemic.

ADB also committed $20 million under the COVID-19 Pandemic Emergency Project to help improve the longer-term capacity of the Kyrgyz Republic’s health system. It will support the upgrading of eight hospitals across the country by expanding and equipping their intensive care units. The project will also help procure medical and personal protection equipment, finance minor rehabilitation, and support salary top-ups and other eligible expenses.

Through the Small Expenditure Financing Facility, with $500,000 committed in November 2020, ADB will help upgrade the Osh-Plotina Water Treatment Plant’s chlorine neutralization unit to a higher international standard and provide 400,000 people with access to safe and reliable water. The activity will improve the development impact and sustainability of the Emergency Assistance for Recovery and Reconstruction Project completed in 2016.

Students attending vocational schools in Karakol, Kyrgz Republic

Under the Naryn Rural Water Supply and Sanitation Development Program, ADB committed a $2.5 million grant for program readiness in December 2020. This financing will support implementation, design activities, institutional strengthening, and third-party verification of the program’s results. The program itself, with $27.4 million of investment and operational since August 2020, will benefit more than 64,000 people in rural communities of Naryn province, while building the capacity of water supply and sanitation service operators and institutions across the country to enhance service delivery and performance.

In December 2020, $90,000 was earmarked under the framework of the Almaty–Bishkek Economic Corridor, to provide 50 air-quality monitoring sensing devices to help improve air quality, public health, and livability in Bishkek, the Kyrgyz Republic’s increasingly polluted capital city. These devices will establish a baseline for strategies to improve air quality, such as the proposed ADB Urban Transport Electrification Project.

The Almaty-Bishkek Economic Corridor connects people, businesses, and ideas to make stronger together

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments in loans and equity investments from ADB’s own funds in 2020 amounted to $1.4 billion for 38 transactions in economic and social infrastructure, finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2020, ADB mobilized $1.9 billion of long-term project cofinancing and $3.3 billion of cofinancing through its Trade and Supply Chain Finance Program and Microfinance Program. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $14.3 billion as of 31 December 2020.

Financing Partnerships

Financing partnerships enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade and Supply Chain Finance Program and Microfinance Program.

ADB began cofinancing operations in the Kyrgyz Republic in 1997. Since then, sovereign cofinancing commitments for the Kyrgyz Republic have amounted to $333.58 million for 12 investment projects and $5.48 million for 11 technical assistance projects.

A summary of cofinanced projects is available at Kyrgyz Republic: Cofinancing.

ADB has supported the government in ensuring quality education to all children

Operational Challenges

Government decision-making and private sector investment in the Kyrgyz Republic are impeded by political instability, regional disparities, corruption, and poor management of public finances.

To seize the opportunities and address the risks identified since the Kyrgyz Republic joined the Eurasian Economic Union in 2015, ADB is providing technical assistance to enhance policymaking and strengthen the government’s capacity for managing development projects.

Future Directions

ADB’s country operations business plan, 2021–2023 for the Kyrgyz Republic is consistent with its country partnership strategy, 2018–2022. It focuses on supporting inclusive growth and economic diversification beyond the COVID-19 pandemic, improving access to public and social services, and leveraging regional cooperation and integration.

The country partnership strategy is aligned with the Kyrgyz Republic’s long-term development strategy, 2018–2040 and its medium-term program (Unity, Trust, Creation), 2018-2022. The government’s objectives are growth through macroeconomic stability, improved connectivity, and the development of small and medium-sized enterprises.

ADB will support four key development areas in the Kyrgyz Republic: (i) policy-based operations to advance economic diversification and further develop the private sector; (ii) improving the governance, operation, and maintenance of infrastructure in energy and transport; (iii) enhanced social inclusion and environmental sustainability through widened access to skills development, improved water supply and sanitation, and climate resilience and disaster risk reduction; and (iv) supporting the Kyrgyz Republic’s digital transformation program.

This article was originally published in the ADB and the Kyrgyz Republic: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

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