Kyrgyz Republic : Promoting Economic Diversification Program (Subprogram 2)
The program continues to support the implementation of reforms in the National Development Strategy of the Kyrgyz Republic for 20182040 (NDS 2040) and its overarching objective of gradually diversifying the Kyrgyz economy away from an over-reliance on gold production and exports (about 6%10% of gross domestic product each year) and remittance-led consumption (about 30% of GDP). The program is a continuation of past reform support efforts from the Asian Development Bank (ADB) to the Government of Kyrgyz Republic on trade and investment competitiveness, small and medium-sized enterprise (SME) development, infrastructure development (including through public-private partnerships), and industry-based skills development.
Project Details
-
Project Officer
Tora, Laisiasa Natakubu
Central and West Asia Department
Request for information -
Country/Economy
Kyrgyz Republic -
Sector
- Public sector management
| Project Name | Promoting Economic Diversification Program (Subprogram 2) | ||||||||
| Project Number | 52225-003 | ||||||||
| Country / Economy | Kyrgyz Republic |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Public sector management / Economic affairs management - Public expenditure and fiscal management - Social protection initiatives |
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| Gender | Effective gender mainstreaming | ||||||||
| Description | The program continues to support the implementation of reforms in the National Development Strategy of the Kyrgyz Republic for 20182040 (NDS 2040) and its overarching objective of gradually diversifying the Kyrgyz economy away from an over-reliance on gold production and exports (about 6%10% of gross domestic product each year) and remittance-led consumption (about 30% of GDP). The program is a continuation of past reform support efforts from the Asian Development Bank (ADB) to the Government of Kyrgyz Republic on trade and investment competitiveness, small and medium-sized enterprise (SME) development, infrastructure development (including through public-private partnerships), and industry-based skills development. While the Kyrgyz Republic is still recovering from the coronavirus disease (COVID-19) pandemic outbreak that began in March 2020 and the severe economic and employment contraction and fiscal difficulties that was already underway, this program helps the government stay on the reform course, by (i) insulating the originally planned and needed medium-term reform efforts from the current crisis effects, (ii) while adding urgent reforms to improve the fiscal management (and buffers) and social protection mechanisms that have now been agreed to be crucial enablers of the original medium-term reform agenda. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | In addition to being developed on the basis of the NDS 2040, the proposed program is aligned with ADB's Strategy 2030, including operational priorities on addressing remaining poverty and reducing inequalities, accelerating progress in gender equality and strengthening governance and institutional capacity, and with ADB's Country Partnership Strategy for 20182022. The program has been prepared with ADB technical assistance (TA) and support from the IMF on the policy dialogue with Government on debt sustainability and on the preparation of fiscal management reforms. The transition to a dynamic, globally oriented, market-based economy requires consideration for a number of issues that the coronavirus pandemic has illustrated as key: (i) importance of social safety nets to help cushion the impact of the pandemic and structural adjustment costs on the populace, (ii) fiscal buffers to allow an immediate crises response and to create fiscal room to safeguard public expenditures related to the reform effort, and (iii) constituency building through policy measures to safeguard public expenditure on social protection while addressing low coverage and inadequacy of existing social protection transfers. ADB's programmatic assistance helps incorporate this emerging consensus. |
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| Impact | |||||||||
| Project Outcome | |
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| Description of Outcome | |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Tora, Laisiasa Natakubu |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, CWRD |
| Executing Agencies |
Ministry of Finance |
| Timetable | |
|---|---|
| Concept Clearance | 02 Nov 2018 |
| Fact Finding | 21 Sep 2020 to 25 Sep 2020 |
| MRM | 06 Apr 2021 |
| Approval | 23 Sep 2021 |
| Last Review Mission | - |
| Last PDS Update | 23 Sep 2021 |
Grant 0800-KGZ
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 23 Sep 2021 | 04 Oct 2021 | 19 Nov 2021 | 31 Dec 2021 | - | 31 Dec 2021 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.70 | Cumulative Contract Awards | |||
| ADB | 10.70 | 17 Jun 2022 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 10.70 | 0.00 | 100% |
Loan 4114-KGZ
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 23 Sep 2021 | 04 Oct 2021 | 19 Nov 2021 | 31 Dec 2021 | - | 31 Dec 2021 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 69.30 | Cumulative Contract Awards | |||
| ADB | 69.30 | 17 Jun 2022 | 69.30 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 69.30 | 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 |
|---|---|---|
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 4114-KGZ: Promoting Economic Diversification Program (Subprogram 2) | Loan Agreement (Ordinary Resources) | Oct 2021 |
| Grant Agreement (Special Operations) for Grant 0800-KGZ: Promoting Economic Diversification Program (Subprogram 2) | Grant Agreement | Oct 2021 |
| Promoting Economic Diversification Program (Subprogram 2): Report and Recommendation of the President | Reports and Recommendations of the President | Aug 2021 |
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
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Related Publications
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