Kyrgyz Republic : Second Issyk-kul Sustainable Development Project

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

1. Being of outstanding natural beauty, the lake, shoreline, and surroundings are one of the nation s most popular tourist destinations with over 750,000 visitors in 2013. Consequently, tourism has become an important economic driver for the region, and particularly for lakeshore areas. While the growth in tourism is destined to continue, its impact on the pristine and fragile environments and ecosystems of the lake and its vicinity are of increasing concern. Being both oligotrophic (nutrient-poor) and endorheic (lacking conventional outflows), the lake is extremely sensitive to elevated nutrient and contaminant inflows. Unchecked, it is therefore increasingly vulnerable to excessive liquid and solid waste pollution from the expanding human activity.

2. Cholpon-Ata, a small town on the lake s northern shoreline, highlights these concerns. Although enjoying the benefits of a flourishing tourism industry, with over 238,000 tourist visits in 2012, its environmental pollution and subsequent public health risk potential is an increasing concern due its dilapidated sewerage network, treatment facilities, and undeveloped solid waste management system. Reflecting other lakeshore towns and settlements, it emphasizes the crucial need for environmental infrastructure improvements in order to protect and sustain the lake and surrounding areas.

3. The government of the Kyrgyz Republic has recognized the significant environmental and natural resource values of the Issyk-Kul region, and is committed to ensuring its long-term environmental sustainability. As a result, it has adopted the National Sustainable Development Strategy for the Kyrgyz Republic for the Period 2013-2017, which establishes tourism as a key pillar of economic development while specifically mentioning the Issyk-Kul region in the context of national development.

1. A Fact-finding for mission for the ensuing project was fielded on 16-31 May 2018. The mission objectives included (i) finalization of project components and cost estimates; (ii) preparation of the Project Administration Manual; (iii) assess and review the readiness for the proposed components; (iv) economic and financial analysis for the proposed project, (v) environmental and social safeguard issues and mitigation efforts, including effluent discharge and sanitary protection zones, (vi) a thorough assessment of the procurement risk and mitigation measures; and (v) development of the Design Build Operate tender documentation.

2. The Final report was submitted by the TA consultants on 17 August 2018.

3. The project is currently awaiting loan and grant negotiations targeting ADB board approval by end of 2018.