Kyrgyz Republic : Promoting Economic Diversification Program - Subprogram 3
Subprogram 3 is the final subprogram in a programmatic series that was approved in 2019 with the financing of $50 million for subprogram 1. The program was originally designed with two subprograms. However, in 2021, it was restructured resulting in an additional subprogram and a new reform area. The proposed subprogram 3 remains fully aligned with the original program outcome and outputs, which supports the implementation of the long-term National Development Strategy of the Kyrgyz Republic for 2018-2040 (NDS 2040) and, more recently, the medium-term National Development Program of the Kyrgyz Republic until 2026.
Project Details
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Project Officer
Gafurov, Bobir Baisovich
Sectors Group
Request for information -
Country/Economy
Kyrgyz Republic -
Sector
- Public sector management
Project Name | Promoting Economic Diversification Program - Subprogram 3 | ||||||||
Project Number | 52225-004 | ||||||||
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 OP5: Promoting rural development and food security OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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Sector / Subsector |
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development Education / Technical and vocational education and training Public sector management / Economic affairs management - Public expenditure and fiscal management - Social protection initiatives |
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Gender | Effective gender mainstreaming | ||||||||
Description | Subprogram 3 is the final subprogram in a programmatic series that was approved in 2019 with the financing of $50 million for subprogram 1. The program was originally designed with two subprograms. However, in 2021, it was restructured resulting in an additional subprogram and a new reform area. The proposed subprogram 3 remains fully aligned with the original program outcome and outputs, which supports the implementation of the long-term National Development Strategy of the Kyrgyz Republic for 2018-2040 (NDS 2040) and, more recently, the medium-term National Development Program of the Kyrgyz Republic until 2026. The government plans to accelerate its economic diversification efforts and has prioritized the implementation of structural reforms to improve (i) trade and investment competitiveness, (ii) small and medium-sized enterprises (SMEs) development, (iii) infrastructure development (including through public-private partnerships [PPPs]), (iv) industry-based skills development, and (v) fiscal management and social protection. These efforts will enable the economy and the population to be more resilient to exogenous shocks in the future and will help improve the economy's medium-to long-term trajectory. This subprogram will continue to support the government in implementing complex reforms against the backdrop of significant macroeconomic challenges and constitutional changes by ensuring that planned reform efforts are supported. The government's overarching objective is to diversify the Kyrgyz economy away from over-reliance on gold production and remittance-led consumption. The scope and coverage of the program are even more important given the continuum of shocks to the economy that began in March 2020 with the onset of the coronavirus disease (COVID-19) pandemic, continued with post-pandemic disruptions in global supply chains in late 2021, and the Russian invasion of Ukraine in February 2022, which is adversely impacting the economy through increased food and fuel prices, lower remittances, fewer job opportunities, trade disruptions, and low investor confidence. |
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Project Rationale and Linkage to Country/Regional Strategy | The Kyrgyz Republic has experienced periods of economic stability and growth interrupted by frequent economic recessions that have conflated hardship inducing external shocks, serious social and political instability, and disruptions to medium-term reform and institutional development plans. This boom-bust pattern helps explain the lack of income per capita convergence of the country with upper-middle countries in the last few decades. By the end of the third quarter of 2021 GDP entered a positive growth territory following the COVID-19 pandemic. However, economic recovery is again at risk in 2022 because of the continuum of shocks to the economy which has driven up prices for food and fuel and reduced migrant labor remittances and exports. It is expected that the pace of the global economic recovery will slow down and weigh in on the Kyrgyz Republic's economic growth, which will lead to increasing hardships among the poor population. The program will continue to support the government's implementation of structural reforms for ensuring economic diversification, resilience, and economic recovery |
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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 | |
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Environment | C |
Involuntary Resettlement | C |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation |
Responsible ADB Officer | Gafurov, Bobir Baisovich |
Responsible ADB Department | Sectors Group |
Responsible ADB Division | Public Sector Management and Governance Sector Office (SG-PSMG) |
Executing Agencies |
Ministry of Finance |
Timetable | |
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Concept Clearance | 30 Mar 2023 |
Fact Finding | 16 May 2022 to 25 May 2022 |
MRM | 21 Jul 2022 |
Approval | 23 Sep 2022 |
Last Review Mission | - |
Last PDS Update | 23 Sep 2022 |
Grant 0853-KGZ
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
23 Sep 2022 | 03 Oct 2022 | 08 Dec 2022 | 31 Oct 2023 | - | 31 Oct 2023 |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 25.00 | Cumulative Contract Awards | |||
ADB | 25.00 | 08 Nov 2023 | 0.00 | 0.00 | 0% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 Nov 2023 | 25.00 | 0.00 | 100% |
Loan 4221-KGZ
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
23 Sep 2022 | 03 Oct 2022 | 08 Dec 2022 | 31 Oct 2023 | - | 31 Oct 2023 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 25.00 | Cumulative Contract Awards | |||
ADB | 25.00 | 08 Nov 2023 | 25.00 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 Nov 2023 | 25.00 | 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 |
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Loan Agreement (Ordinary Operations [Concessional]) for Loan 4221-KGZ: Promoting Economic Diversification Program - Subprogram 3 | Loan Agreement (Ordinary Resources) | Oct 2022 |
Grant Agreement (Special Operations) for Grant 0853-KGZ: Promoting Economic Diversification Program - Subprogram 3 | Grant Agreement | Oct 2022 |
Promoting Economic Diversification Program - Subprogram 3: Report and Recommendation of the President | Reports and Recommendations of the President | Aug 2022 |
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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$50 Million ADB Program to Diversify Economy, Create Jobs in Kyrgyz Republic
ADB has approved a $50 million project to help the Kyrgyz Republic diversify its economy to improve growth and make the country more resilient to external shocks.
Tenders
Contracts Awarded
Procurement Plan
None currently available.