Kyrgyz Republic: Building Resilience with Active Countercyclical Expenditures Program

Sovereign Project | 56150-001

The BRACE Program will help support government priorities to help poor and vulnerable groups, promote food security and price stability, and support employment and businesses affected to contain the effects of the Russian invasion of Ukraine that is compounding significant adverse social and economic impacts from the COVID-19 pandemic. The expected impact of the program is Inclusive economic growth sustained and income inequality reduced. The outcome of the program is adverse socioeconomic effects of the crisis mitigated, and resilience for poor and vulnerable groups enhanced. The program outputs are (i) measures to support food security and price stability strengthened, (ii) measures to support social protection and safety net programs accomplished, and (iii) measures to support employment through small and medium-sized businesses implemented.

Project Details

  • Project Officer
    Gafurov, Bobir Baisovich
    Central and West Asia Department
    Request for information
  • Country/Economy
    Kyrgyz Republic
  • Sector
    • Public sector management
Project Name Building Resilience with Active Countercyclical Expenditures Program
Project Number 56150-001
Country / Economy Kyrgyz Republic
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant: Building Resilience with Active Countercyclical Expenditures (BRACE)
Asian Development Fund US$ 25.00 million
Loan: Building Resilience with Active Countercyclical Expenditures (BRACE)
Concessional ordinary capital resources lending US$ 25.00 million
TA: Building Resilience with Active Countercyclical Expenditures Program
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The BRACE Program will help support government priorities to help poor and vulnerable groups, promote food security and price stability, and support employment and businesses affected to contain the effects of the Russian invasion of Ukraine that is compounding significant adverse social and economic impacts from the COVID-19 pandemic. The expected impact of the program is Inclusive economic growth sustained and income inequality reduced. The outcome of the program is adverse socioeconomic effects of the crisis mitigated, and resilience for poor and vulnerable groups enhanced. The program outputs are (i) measures to support food security and price stability strengthened, (ii) measures to support social protection and safety net programs accomplished, and (iii) measures to support employment through small and medium-sized businesses implemented. The program is aligned with Strategy 2030 of the Asian Development Bank (ADB), including (i) operational priority 1: addressing remaining poverty and reducing inequalities, (ii) operational priority 2: accelerating progress in gender equality, (iii) operational priority 4: making cities more livable, (iv) operational priority 6: strengthening governance and institutional capacity, and (v) operational priority 7: fostering regional cooperation and integration.
Project Rationale and Linkage to Country/Regional Strategy The exogenous shock triggered by the Russian invasion of Ukraine has further driven up prices for food and fuel, resulting in fluctuation of remittances inflow, and affecting trade. It is impacting sectors that the poor and vulnerable groups are most dependent on (trade, migration) and hurting them through high inflation at a time when Kyrgyz Republic has limited fiscal space to support the population. This puts the wellbeing of the population and economic recovery at risk in 2022. The government adopted several resolutions in 2022 aimed at addressing the negative impact of the shock on the poor and vulnerable. The countercyclical development expenditure program comprises measures across three support areas: (i) support for food security and price stability; (ii) support for social protection and safety net programs; and (iii) support of employment and small and medium businesses. The government has requested (i) a concessional loan of $25,000,000 from ADB's ordinary capital resources and (ii) a grant not exceeding $25,000,000 from ADB's Special Funds resources (Asian Development Fund) to help finance the program.
Impact
Outcome
Outputs
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No environmental impact is expected.
Involuntary Resettlement No involuntary land acquisition and resettlement is expected.
Indigenous Peoples No adverse impacts on indigenous peoples is expected.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders, including (i) Ministry of Finance, (ii) Ministry of Economy and Commerce, (iii) Ministry of Agriculture, (iv) Ministry of Education and Science, (v) Ministry of Labor, Social Protection, and Migration, and (vi) other key development partners were consulted to identify the impacts of the COVID-19 pandemic and the Russian invasion of Ukraine and align ADB's assistance with government's needs and the support by development partners.
During Project Implementation Stakeholders and civil society will be consulted through the TA during program implementation.
Responsible ADB Officer Gafurov, Bobir Baisovich
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 17 Mar 2024
Fact Finding 16 May 2022 to 25 May 2022
MRM 25 Aug 2022
Approval -
Last Review Mission -
Last PDS Update 06 Sep 2022

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