Kyrgyz Republic: Investment Climate Improvement Program - Subprogram 3
ADB is helping the Kyrgyz Republic address constraints to private sector development. The project supports policy reforms aimed at improving business regulation, access to finance, skills development, and the facilitation of public-private-partnerships.
Barreto, Ruben B.
Central and West Asia Department
Request for information
- Public sector management
|Project Name||Investment Climate Improvement Program - Subprogram 3|
|Country / Economy||Kyrgyz Republic
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Education / Technical and vocational education and training
Finance / Banking systems and nonbank financial institutions - Central banking systems - Finance sector development - Inclusive finance - Small and medium enterprise finance and leasing
Industry and trade / Small and medium enterprise development - Trade and services
Public sector management / Economic affairs management - Law and judiciary - Public expenditure and fiscal management
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||Subprogram 3 of the Investment Climate Improvement Program (ICIP) is the last subprogram of the program cluster approved in 2008. The program continues to address binding constraints to private investment and to sustainable economic growth and employment generation by (i) reducing the cost of regulatory compliance, (ii) improving access to finance, (iii) enhancing workers' skills, and (iv) facilitating public-private partnerships.|
|Project Rationale and Linkage to Country/Regional Strategy||Long-term development prospects in the Kyrgyz Republic particularly for higher wages, employment, and profitable investment opportunities depend on diversifying into higher-value-added products and opening up new markets. The government still faces challenges in providing market-supporting mechanisms that foster private sector development. Among the constraints are (i) a challenging business environment that still discourages many entrepreneurs and investors from expanding, investing, or lending in the country; (ii) an increasing shortage of qualified workers that prevents firms from moving up the production ladder; and (iii) expensive, short term finance that is concentrated in few sectors.|
|Impact||Sustainable economic growth and employment creation|
|Description of Outcome||Improved investment climate and business environment|
|Progress Toward Outcome|
|Description of Project Outputs||
Cost of regulatory compliance reduced
Access to finance improved
Workers' skills enhanced
Public-private partnerships facilitated
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
The program of economic reforms aims to reduce cost of regulatory compliance, improve access to finance, enhance workers skills and facilitate PPPs.
It is anticipated that the proposed policy-based grant will have no adverse environmental impacts. Nevertheless, it is advised that the PPP facility considers the ADB prohibited investment activities list as provided in Appendix 5 of the SPS2009.
Category C is being proposed for the Sub-program.
|Involuntary Resettlement||The proposed policy-based grant includes country-wide policy reforms to improve investment climate and employment opportunities. Program activities do not include civil works with land acquisition.|
|Indigenous Peoples||The proposed policy-based grant includes country-wide policy reforms to improve investment climate and employment opportunities .The reforms shall be applied across regions and are not expected to have adverse impacts on any specific minority ethnic groups in the country.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||ADB missions were fielded in the Kyrgyz Republic in January and May 2013 to design subprogram 3 of the Investment Climate Improvement Program. The missions discussed the program of reforms with government bodies (including Office of the President, Office of the Prime Minister, Ministry of Finance, Ministry of Economy, State Tax Service, State Customs Service, the National Bank, the Agency of Vocational Education, the Deposit Protection Agency, the Single Window Center on Foreign Trade), business associations, private businesses, financial institutions, and development partners. An open round table was held on 29 May 2013. ADB mission visited Osh City on 30 May 2013 to better understand the business environment in the southern part of the country and regional constraints to private investment. About 160 people attended an ADB-sponsored PPP forum to discuss the required reforms for improving the enabling environment for PPPs in light of international experience.|
|During Project Implementation||ADB missions fielded in May 2013 discussed the program of reforms with business associations, private businesses, and development partners. An open round table was held on 10 February 2014 to better understand the expected impact of the reforms.|
|Consulting Services||There will be no recruitment of consultants. The policy-based grant is to be provided in the form of budget support.|
|Procurement||There will be no procurement. The policy-based grant is to be provided in the form of budget support.|
|Responsible ADB Officer||Barreto, Ruben B.|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, CWRD|
Ministry of Economy
106, Chui Prospect, Bishkek, Kyrgyz Republic
|Fact Finding||20 May 2013 to 31 May 2013|
|MRM||24 Feb 2014|
|Approval||19 Jun 2014|
|Last Review Mission||-|
|Last PDS Update||20 Mar 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|19 Jun 2014||19 Jun 2014||10 Jul 2014||31 Dec 2014||-||08 Sep 2014|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||22.00||Cumulative Contract Awards|
|ADB||22.00||01 Feb 2022||22.00||0.00||100%|
|Cofinancing||0.00||01 Feb 2022||22.00||0.00||100%|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Investment Climate Improvement Program: Completion Report||Project/Program Completion Reports||Mar 2015|
|Grant Agreement (Special Operations) for Investment Climate Improvement Program - Subprogram 3||Grant Agreement||Jun 2014|
|Investment Climate Improvement Program - Subprogram 3: Report and Recommendation of the President||Reports and Recommendations of the President||May 2014|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Kyrgyz Republic: Investment Climate Improvement Program||Validations of Project Completion Reports||Oct 2015|
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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