EBRD Commits €65.9 Million to Enhance Infrastructure and Climate Resilience in Kyrgyz Republic

EBRD Commits €65.9 Million to Enhance Infrastructure and Climate Resilience in Kyrgyz Republic

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has pledged €65.9 million in sovereign loans and grant funding to improve the electricity and water supply systems in the Kyrgyz Republic, addressing critical infrastructure and climate resilience needs. The financing package comprises three projects: a €44.2 million sovereign loan for the reconstruction of a key road section, a €9.2 million sovereign loan and a €5 million investment grant to enhance the electricity transmission and distribution network, and a €3.75 million sovereign loan and €3.75 million investment grant for water supply modernization. These initiatives aim to bolster connectivity, reduce emissions, and enhance operational efficiency, contributing to the sustainability and development goals of the Kyrgyz Republic. The EBRD’s commitment underscores its ongoing support for the country’s infrastructure and private entrepreneurship, with previous investments totaling €911 million across 231 projects.

(PRESS RELEASE) LONDON, 30-Nov-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is aiming to improve the connectivity and efficiency of electricity and water supply in the Kyrgyz Republic by providing sovereign loans and grant funding worth up to €65.9 million. The funds will help upgrade and refurbish the country’s ageing infrastructure and make it more climate resilient.

The agreement on the financing package was signed at a ceremony attended by the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov, and EBRD President Odile Renaud-Basso.

President Renaud-Basso said: “The projects signed today will help address key connectivity, water and electricity supply issues in the Kyrgyz Republic. We are supporting them because they contribute to the greater sustainability of local infrastructure and meet our strategic objectives for the country.”

The three projects are:

• A sovereign loan of up to €44.2 million for the reconstruction of a 30 km (Balbay Batyr-Karakol) section of the Issyk-Kul Lake ring road. As part of the Trans-Caspian Corridor, the upgraded road will improve the Kyrgyz Republic’s transit potential and regional connectivity. Supported by the Türkiye-EBRD Cooperation Fund, the project will help reduce annual CO2 emissions by 16,000 tonnes by 2050. It will also help implement international safety standards and improve the efficiency of road maintenance by introducing performance-based contracts
• A sovereign loan of up to €9.2 million and an investment grant of €5 million to the national electricity transmission and distribution company, National Electric Grid of Kyrgyzstan (NEGK), will help install advanced remotely controlled electric meters in the Chuy, Jalal-Abad, Osh and Issyk-Kul regions of the country. The funds will be also used to rehabilitate low-voltage (0.4 kV) distribution lines across the country. Once implemented, the project will boost NEGK’s operational efficiency and reduce annual CO2 emissions by more than 17,000 tonnes.
• A sovereign loan of up to €3.75 million and investment grant of up to €3.75 million under the Kyrgyz Water Resilience Framework to the town of Bazar-Korgon in the west of the country will finance the modernisation of water supply services. The loan to the local water utility will be used to introduce water metering, procure specialised equipment and construct an office building.

The EBRD has to date invested €911 million in the Kyrgyz Republic through 231 projects, with most of those funds supporting private entrepreneurship.

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SOURCE: EBRD