Kyrgyz Republic and ADB

ADB supports inclusive growth in the Kyrgyz Republic, helping to reduce poverty, lessen gender and social disparities, build infrastructure, develop human capital, transform agriculture, and mitigate the effects of disaster and climate change.

ADB's Work in the Kyrgyz Republic

Economic growth in the Kyrgyz Republic remained strong in 2023 despite the headwinds from global and regional shocks. Domestic revenues improved significantly, and public debt declined, providing additional fiscal space for future shocks and development needs. However, inflation remained high due to demand pressures. Medium-term growth prospects will be subject to structural reforms.

The current operations of the Asian Development Bank (ADB) in the Kyrgyz Republic support economic diversification, inclusive development, and social protection. ADB also supports the Kyrgyz Republic’s active participation in the Central Asia Regional Economic Cooperation (CAREC) Program.

To enhance regional trade for the Kyrgyz Republic, ADB has helped reconstruct or rehabilitate about 1,000 kilometers (km) of major transport corridors and feeder roads. In November 2023, ADB completed two road sections of the North–South Alternate Corridor totaling 68 km to provide a faster, alternative route between the Central Asia Regional Economic Cooperation (CAREC) Corridors 1 and 3. The project aimed to improve connectivity and mobility, link economically underprivileged regions in the Kyrgyz Republic with economic hubs, and strengthen the institutional capacity of the Ministry of Transport and Roads. ADB is also helping reform the country’s road maintenance systems, road asset management, and road safety.

As of 31 December 2023, ADB has committed 217 public sector loans, grants, and technical assistance totaling $2.6 billion to the Kyrgyz Republic. ADB’s current sovereign portfolio in the Kyrgyz Republic includes 14 loans and 19 grants worth $784.8 million.

Cumulative sovereign and nonsovereign loan and grant disbursements to the Kyrgyz Republic amount to $1.82 billion. These were financed by regular and concessional ordinary capital resources and the Asian Development Fund.

In June 2023, the Government of the Kyrgyz Republic ratified ADB’s $30-million Strengthening Regional Health Security Project to support the country’s health system and improve its resilience to infectious diseases. The project will improve laboratories’ diagnostic capacities and link regional laboratories and hospitals in busy border areas. It will help upgrade laboratories to modern quality and safety standards, train laboratory staff, and improve early warning systems for communicable diseases. Universal health coverage will also be enhanced through improved access to quality and affordable diagnostics.

In July 2023, ADB committed $40 million for the School Education Reform Sector Development Program to strengthen the Kyrgyz Republic’s education system and boost the country’s innovation capacity and global competitiveness. The program will help the Ministry of Education and Science undertake vital institutional reforms in curricula design, teacher development, and management of school networks.

In the Kyrgyz Republic, a lack of accessible finance for horticulture businesses is holding back the modernization of the country’s agriculture value chain. In December 2023, ADB committed a $40-million loan and grant package for the government to lend to Kyrgyz agribusinesses for investments in refrigerated vehicles, cold storage facilities, grading or sorting platforms, washing facilities, and packaging equipment, together with associated fixed assets such as warehouses. As well as delivering higher-quality horticultural products, the project will also help create climateresilient and sustainable enterprises, increase employment by about 35,000 jobs, and improve household incomes by 10%.

In September 2023, ADB partnered with the Public–Private Partnership (PPP) Center in the National Investment Agency under the President of the Kyrgyz Republic to help the country develop PPPs in high-potential sectors—such as digital, renewable energy, social, and urban mobility—and spur growth.

In December 2023, ADB and Kompanion Bank Closed Joint Stock Company signed a senior loan of up to $5 million in local currency financing to boost micro, small, and medium-sized enterprises in the Kyrgyz Republic, especially those owned or led by women.

Photo: Asian Development Bank
ADB supports the Kyrgyz Republic in helping students across the country improve their employability. Photo: Aliman Temirbek/ADB

In December 2023, under the Climate-Resilient Agricultural Value Chain Development Project, Aiyl Bank, the most prominent bank financing the country’s agriculture sector, was selected as the first financial institution to participate in this project to provide better-structured loans for horticulture value chain investments, including fruit and vegetables.

ADB has sought to improve project readiness at all levels and introduced new financing modalities. Project readiness financing is an extensively used modality in several countries. Small Expenditure Financing Facility (SEFF) is the other modality used for project readiness, pilot testing, post-completion support, and capacity building. ADB’s resident mission in the Kyrgyz Republic has implemented the first-ever SEFF comprising six activities, five of which have already been approved. The first SEFF has yielded promising results: four investment projects of about $150 million have been or are being prepared, in addition to ensuring post-project sustainability. The success of this first SEFF has prompted the processing of a second one due in 2024.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in the Kyrgyz Republic as of 31 December 2023 amounted to $8.3 million, representing 0.07% of ADB’s total private sector portfolio.

Operational challenges. Adverse environments for business, competitiveness, and trade are key constraints to a strong private sector and high-quality jobs in the Kyrgyz Republic. Weak governance and high bureaucracy are the main barriers to private sector development, firms’ expansion, and job creation. Climate-related risks and environmental issues pose serious challenges to the economy’s sustainability and productivity, as risks from flash floods, landslides, and drought remain high.

Priorities to accelerate economic growth and poverty reduction in the Kyrgyz Republic should focus on increasing resilience to climate change, catalyzing private sector-led growth, strengthening governance standards and the rule of law, and promoting inclusive growth.

 

Knowledge Work

In August 2023, ADB published the Bishkek Clean Air Action Plan, which traces the major causes of air pollution and proposes 11 highest priority actions for implementation within 10 years. Tackling Air Pollution in Bishkek: A Road Map to Cleaner Air summarizes the consensus around air pollution, its causes, and proposed interventions.

In December 2023, ADB published the Atlas of Landslides in the Kyrgyz Republic, which assesses the country’s rising exposure to landslides and looks at how ADB is providing a $35-million finance package to develop a risk reduction program designed to boost preparedness and cut their impact. ADB also published the Gendered Impacts of the COVID-19 Pandemic in Central and West Asia, which examines how the livelihoods, health, and well-being of women in Central and West Asia were disproportionately affected by the coronavirus disease (COVID-19) pandemic; assesses responses; and considers how the experience can guide gender mainstreaming.

Shareholding and Voting Power

Number of Shares Held
31,746 (0.298% of total shares)

Votes
70,860 (0.533% of total membership, 0.818% of total regional membership)

*Overall capital subscription
$425.93 million

*Paid-in capital subscription
$21.31 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Almaz Baketaev
ADB Alternate Governor: Daniiar Amangeldiev
ADB Director: Made Arya Wijaya (Indonesia)
ADB Alternate Director: Llewellyn Roberts (New Zealand)
ADB Director’s Advisors: Rosemary Abigail Lee Hang (Samoa) and Mohammed Jabid (Fiji)

 

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in the Kyrgyz Republic:

  • Sovereign cofinancing: $334.23 million for 13 investment projects and $5.98 million for 12 technical assistance projects since 1997

 

Future Directions

In 2023, ADB launched a new 5-year country partnership strategy for the Kyrgyz Republic to support the country’s development priorities by fostering inclusive, resilient, and private sectorled growth. It focuses on three pillars: (i) enhancing economic opportunities for all, (ii) building resilience to climate change and disasters, and (iii) strengthening governance and private sector development. The strategy’s crosscutting themes are supporting climate change mitigation and adaptation, promoting gender equality, supporting digital transformation, strengthening governance, and promoting regional cooperation and integration.

This article was originally published in the ADB and the Kyrgyz Republic: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Kyrgyz Republic Resident Mission
Orion Business Center
21 Erkindik Prospect, 6th Floor
Bishkek 720040, Kyrgyz Republic
Tel: +996 312 626611
Fax: +996 312 986761
E-mail

Ministry of Finance of the Kyrgyz Republic
58 Erkindik Prospect
Bishkek 720040, Kyrgyz Republic
Tel: +996 312 660504
Fax: +996 312 661645
E-mail

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