World Bank approves $27 million for community-driven development in Kyrgyz Republic

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The World Bank’s Board of Executive Directors has approved $27 million for the National Community Initiatives Project (NCIP) in the Kyrgyz Republic. The project aims to enhance access to socio-economic infrastructure and increase economic opportunities at the local level, with a focus on women and youth.

“The National Community Initiatives Project builds on more than a decade of the Government’s successful community-driven development initiatives and aims to scale up, standardize, and deepen their impact,” said Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic. “The project will also build the capacity of local governments to work effectively with communities on development priorities, ensuring a more prosperous future for all.”

The project will be implemented through 2029 by the Community Development and Investment Agency (ARIS). The Ministry of Economy and Commerce of the Kyrgyz Republic will oversee overall project coordination, working closely with other ministries and agencies.

“At the heart of this project is the establishment of a platform that will strengthen the relationship between local authorities and residents. It will help them jointly create development plans that address local challenges on service delivery, economic development, and climate resilience, and identify community priorities for investments and livelihoods activities," said Christopher Finch, World Bank’s Senior Social Development Specialist and the project's Task Team Leader.

Key features of the project include:

Village Climate-Resilient Infrastructure Investments: The project will benefit rural populations in 40 Aiyl Aimaks (sub-districts), one per district across the country. Each selected sub-district will receive up to $450,000 for socio-economic infrastructure identified through a participatory village needs assessment. Eligible infrastructure may include kindergartens, schools, health facilities, water supply systems, renewable energy sources, energy-efficient street lighting, drip irrigation, and disaster-preparedness.

Grants for Climate-Smart Local Economic Development and Livelihood Activities: Fifteen competitively selected sub-districts will receive grants ranging from $200,000 to $300,000 for local economic development based on their social mobilization efforts and business plan sustainability. The objective is to enhance economic opportunities by enabling businesses to launch or expand while creating jobs for women, youth, and vulnerable groups. Target sectors include agricultural processing, handicrafts, eco-tourism, and green enterprises.

Capacity Building: The project will finance comprehensive training for local self-governments and communities in participatory needs assessment; selection; management; monitoring of village investments; climate change; and economic empowerment.

Women and Youth Empowerment: The project aims to engage women and youth in local planning processes; ensure their priorities are addressed in infrastructure investments such as medical facilities or schools; provide tailored training to strengthen women's leadership in social/economic spheres; support women's entrepreneurship; establish private childcare facilities; offer targeted youth engagement opportunities.

Climate Resilience: Climate considerations will be integrated into all aspects of the project including community mobilization; local government planning; selection of infrastructure/livelihood investments.

The National Community Initiatives Project is supported through the International Development Association (IDA), with a $25 million zero-interest credit repayable over 50 years with a 10-year grace period. Additionally co-financed by a $2 million grant from Early Learning Partnership (ELP), requiring no repayment.

The World Bank’s mission is to end extreme poverty while promoting shared prosperity on a livable planet. Its program in Kyrgyz Republic consists of 24 projects supporting modernization/development across various sectors with commitments around $1.2 billion.