Kyrgyz Republic : Sustainable Fiscal Management and Governance Improvement Program (Subprogram 1)

Sovereign Project | 57193-001

The proposed Sustainable Fiscal Management and Governance Improvement Program supports the Kyrgyz Republic to improve governance and climate and gender-responsive public financial management (PFM), strengthen governance of state-owned enterprises (SOEs), strengthen tax policy and administration, and adopt anticorruption measures. The program is aligned with the National Development Strategy of the Kyrgyz Republic for 2018-2040 (NDS 2040), which aims to ensure economic well-being, social welfare, and sound governance; and with ADB's Country Partnership Strategy for the Kyrgyz Republic, 2023-2027 through its support for PFM reforms, improved infrastructure and service delivery, and strengthened capacity and standards.

Project Details

  • Project Officer
    Rahemtulla, Hanif A.
    Sectors Group
    Request for information
  • Approval Date
    28 June 2024
  • Country/Economy
    Kyrgyz Republic
  • Sector
    • Public sector management

Related Projects

Project Name
Sustainable Fiscal Management and Governance Improvement Program (Subprogram 1)
Project Number
57193-001
Country / Economy
  • Kyrgyz Republic
Project Status
Approved
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant 0954-KGZ: Sustainable Fiscal Management and Governance Improvement Program (Subprogram 1)
Source Amount
Asian Development Fund US$ 7.00 million
Loan 4462-KGZ: Sustainable Fiscal Management and Governance Improvement Program (Subprogram 1)
Source Amount
Concessional ordinary capital resources lending US$ 43.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector

  • Public sector management / Public administration - Public expenditure and fiscal management - Reforms of state owned enterprises

Gender
Effective gender mainstreaming
Description

The proposed Sustainable Fiscal Management and Governance Improvement Program supports the Kyrgyz Republic to improve governance and climate and gender-responsive public financial management (PFM), strengthen governance of state-owned enterprises (SOEs), strengthen tax policy and administration, and adopt anticorruption measures. The program is aligned with the National Development Strategy of the Kyrgyz Republic for 2018-2040 (NDS 2040), which aims to ensure economic well-being, social welfare, and sound governance; and with ADB's Country Partnership Strategy for the Kyrgyz Republic, 2023-2027 through its support for PFM reforms, improved infrastructure and service delivery, and strengthened capacity and standards. The program aligns with the following operational priorities (OPs) of ADB's Strategy 2030: OP2 (accelerating progress in gender equality); OP3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability); OP6 (strengthening governance and institutional capacity); and OP7 (fostering regional cooperation and integration). Based on the Joint MDB Methodological Approach for Assessment of Paris Agreement Alignment, the Program is aligned with the goals of the Paris Agreement.

The expected outcome is climate responsive, transparent, and fiscally sound governance and public investment management. To support this outcome, the government will strengthen PFM; improve corporate governance of SOEs; enhance the transparency and accountability of tax policy and administration; and implement anticorruption measures.

Project Rationale and Linkage to Country/Regional Strategy

The government has limited capacity to respond to macroeconomic shocks, finance climate mitigation and resilient investments, and weak governance and transparency undermine investor confidence. Achieving sustainable economic growth necessitates reinforcing institutions, ensuring sound governance, and establishing climate-sensitive, effective, and transparent PFM systems. Since 1991, the country has encountered political instability accompanied by economic and social fragility. The extreme poverty rate was about 1% during 2014-2019, while the overall national poverty rate decreased by 10 percentage points to 20%. The pandemic caused a sharp reversal, pushing the poverty rate up to 25% in 2020 and a significant increase to 33% (2.2 million people) in 2021. This surge was primarily due to an unprecedented rise in extreme poverty, equivalent to 5% of the population, which was seven times higher than in 2020. Tackling this escalating

poverty by enhancing economic prospects stands as a paramount objective for the Kyrgyz Republic. The government is committed to reduce greenhouse gas emissions and adapt to climate change aligned with national priorities and the Sustainable Development Goals (SDGs).

Impact

Project Outcome

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

Contact

Responsible ADB Officer
Rahemtulla, Hanif A.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Finance

Timetable

Concept Clearance
22 Nov 2023
Fact Finding
01 Mar 2024 to 08 Mar 2024
MRM
-
Approval
28 Jun 2024
Last Review Mission
-
Last PDS Update
28 Jun 2024

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.