The Kyrgyz Republic is collaborating with the World Bank Group to advance reforms in energy development and sustainable growth. This initiative aims to support the country's reform agenda, focusing on socio-economic growth and positioning it towards an upper-middle-income status by 2030. A central aspect of this plan is the Kambarata-1 Hydropower Project, expected to have a significant impact on the nation's economy.
The government is working closely with the World Bank Group and other partners to ensure that these projects yield inclusive benefits. The First Sustainable and Inclusive Growth Development Policy Operation is a crucial component in fostering a conducive environment for achieving these goals.
“This Development Policy Operation reflects our strong partnership with the Kyrgyz Republic and our shared goal – to deliver tangible results for people,” stated Hugh Riddell, World Bank Group Country Manager for the Kyrgyz Republic. He emphasized that as progress continues with the Kambarata-1 Hydropower Project, supported reforms will help create jobs, build skills, and ensure lasting benefits.
World Bank financing will assist Kyrgyzstan's reforms in three main areas:
1. Energy Sector: Reforms aim to modernize this sector by revising electricity rates while protecting vulnerable households, enhancing transparency, and attracting private investment in renewable energy.
2. Social Services and Resilience: Efforts are focused on improving education outcomes, expanding social programs, modernizing water infrastructure, addressing regional disparities, and promoting equitable access.
3. Fiscal Sustainability and Business Environment: These reforms intend to strengthen fiscal stability through legislative modernization that enhances transparency, competition, and investor confidence.
Financing from the International Development Association (IDA), part of the World Bank Group's concessional lending arm, comprises a $68 million zero-interest credit repayable over 50 years alongside a $33 million zero-interest loan with a 12-year term plus a 6-year grace period before repayments commence. This package offers affordable financial support aligned with Kyrgyzstan’s development priorities.
The World Bank Group continues its mission of ending extreme poverty while promoting prosperity on a livable planet through its current program of 25 projects in Kyrgyzstan totaling commitments of $1.4 billion.