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Kyrgyz Republic and ADB

With ADB's support, the Kyrgyz Republic has sought to reform legal and regulatory frameworks, improve its business environment, make affordable finance available to all, improve the reliability of electricity services, and help its citizens become more employable.

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:
$438.99 million

Paid-in capital subscription:
$21.96 million

The Kyrgyz Republic joined 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 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

Since 1994, ADB has committed 48 loans ($1.3 billion), 44 grants ($783 million), and 109 technical assistance projects ($62.5 million) for the Kyrgyz Republic.

Cumulative loan and grant disbursements to the Kyrgyz Republic amount to $1.31 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and the Japan Fund for Poverty Reduction.


ADB-Supported Projects and Programs

ADB has placed an emphasis on sustainability and environmental protection in the Kyrgyz Republic’s development. The Issyk-Kul Wastewater Management Project, with financing of $36.52 million, which was committed in December 2018, will upgrade and expand the existing wastewater systems, build institutional capacity, and preserve the environment of Issyk-Kul lake.

The $38.6 million Climate Change and Disaster-Resilient Water Resources Sector Project, which was committed in December 2018, will help modernize and maintain infrastructure, enhance agricultural water management, and improve disaster risk management.

Through the $27.4 million Naryn Rural Water Supply and Sanitation Development Program, committed in December 2019, ADB will work to deliver decent living standards, improve health and quality of life for Kyrgyz citizens, and reduce adverse environmental impacts by 2026.

Students attending vocational schools in Karakol, Kyrgz Republic

ADB remains the largest development partner of the Kyrgyz Republic in education. The $30 million Skills for Inclusive Growth Sector Development Program aims to improve workforce skills and productivity, and develop a market-responsive and inclusive system for technical and vocational education and training. In 2018, the government successfully completed all policy actions of the Strengthening Education System Sector Development Program.

To enhance regional trade for the Kyrgyz Republic, ADB has helped rehabilitate about 1,000 kilometers of major transport corridors and feeder roads. In December 2018, a $78 million loan and grant was committed for the Central Asia Regional Economic Cooperation Corridors 1 and 3 Connector Road Project – Phase 2. The project will reduce the cost of transport between the southern and northern regions of the Kyrgyz Republic and shorten the route between Kazakhstan and Tajikistan. With the $8.4 million Regional Improvement of Border Services Project, ADB is helping construct border-crossing point facilities that meet international standards at Karamyk on the Kyrgyz–Tajik border.

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

Trade is also being stimulated by the $5 million Rural Financial Inclusion Project, providing credit lines to enterprises in the agriculture value chain.

Energy security is a top priority for the Kyrgyz Republic and, with ADB support, the government is preparing a power sector master plan for the coming decade. In 2018, the Power Sector Improvement Project was successfully completed, improving service reliability, reducing power losses, and providing transparency and accountability in the sector. ADB has committed $275 million to rehabilitate the Toktogul Hydroelectric Power Plant, with the first phase of rehabilitation completed in 2019. In 2019, the bank has also committed a $100 million loan and grant to rehabilitate the Uch-Kurgan hydroelectric power plant.

ADB support, through the Second Investment Climate Improvement Program, has contributed to the country’s continuing macroeconomic and fiscal stability. In October 2019, ADB committed a $50 million grant for the Promoting Economic Diversification Program, which will continue supporting the government to advance its reform agenda.

In December 2019, ADB and the government signed a $10 million grant for the Multisector Activities Support Facility to improve the efficiency, sustainability, responsiveness, and readiness of ADB-supported projects and programs in the Kyrgyz Republic.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments from ADB’s own funds (in equity and direct loans) in 2019 amounted to $3.00 billion for 38 transactions in economic and social infrastructure, the finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2019, ADB mobilized $3.28 billion of long-term cofinancing and $3.69 billion of cofinancing in trade finance, microfinance, and supply chain finance programs. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $13.78 billion as of 31 December 2019.

Financing Partnerships

Financing partnerships enable ADB’s development 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 Finance Program and Supply Chain Finance 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.

Projects Cofinanced, 1 January 2014–31 December 2018

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 policy making and strengthen the government’s capacity for managing development projects.

Future Directions

ADB operations in the Kyrgyz Republic will be guided by the country partnership strategy (CPS), 2018–2022, which aims to foster sustainable economic growth, expand supply chains to access regional markets, and improve the quality of life for the Kyrgyz people.

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

Under the CPS, ADB plans to provide $641 million in grants and sovereign loans focused on energy, transport, education, public sector management, water supply and sanitation, and agriculture.

The CPS also aims to improve access to public and social services across the Kyrgyz Republic, and build resilience to climate change and natural disasters.

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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