EBRD to finance improvement of water supply, wastewater services of Kyrgyzstan
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) will allocate a sovereign loan worth up to €1.5 million to Kyrgyzstan for the benefit of the Batken Water Company for improvement of water supply and selected wastewater services.
The EBRD will also seek an investment grant worth €2.5 million from an international or bilateral donor to co-finance the implementation of the sub-project which will address water and wastewater infrastructure rehabilitation needs.
This support will be extended under the existing EBRD sovereign framework of up to €20 million, established by the bank to co-finance with international donors priority water and wastewater rehabilitation sub-projects across the country.
The framework envisages sovereign loans that would be transferred to the cities for the benefit of the water companies involved and would focus on urgently needed water and wastewater infrastructure investments.
The overall objectives of this sub-project are to rehabilitate the water supply and selected wastewater improvements and to improve financial and operational management.
The total sub-project cost is €5.4 million including technical cooperation.
Transition impact of the sub-project will be improved access to basic public utilities, introduction of tariff reform within affordability limits, higher collection rates, establishment of a contractual arrangement between the city and the company, improvement of operational and financial management of the Batken Water Company to be merged with Batken Wastewater Utility and introduction of a formal consultation process with water users in form of a community-based stakeholder participation program.
Since the beginning of its operations in Kyrgyzstan in 1992, the EBRD has invested about $637 million in the country's economy through 112 projects supporting various sectors and industries in the country.
Overall the EBRD has invested well over €13 billion into sustainable energy projects throughout its region since 2006.