ADB, Kyrgyzstan ink grant agreement worth $10 million

31 December 2019 13:29 (UTC+04:00)

By Abdul Kerimkhanov

Asian Development Bank (ADB) and Central Asian republic of Kyrgyzstan have signed a $10 million grant agreement for the Multisector Activities Support Facility in the Kyrgyz Finance Ministry.

This is the first project using the Small Expenditure Financing Facility modality in ADB. The facility aims to improve the efficiency, sustainability, responsiveness, and readiness of ADB-financed projects and programs in Kyrgyzstan.

The grant, sourced from ADB’s Special Funds Resources and categorized as a small expenditure financing facility, will fund project preparatory support for design and procurement readiness of ensuing ADB projects; small pilot projects to demonstrate new technologies, international standards, and management approaches for possible scale-up; project implementation support for ongoing ADB projects to ensure the efficient delivery of project outcomes; and capacity building and supplemental support for completed ADB projects.

It will also finance a series of small-value activities to support and complement larger projects financed by ADB in Kyrgyzstan.

For instance, the facility’s first activity will support further upgrades at a water treatment plant in Kyrgyzstan, which was first supported by ADB in September 2016. The planned upgrades will provide over 400,000 people with access to safe and reliable water supply.

The establishment of the facility is aligned with the Kyrgyz Government’s national development plan and the priorities of ADB’s country partnership strategy, 2018–2022, which include more efficient project design and implementation processes as well as localized capacity building to ensure sustainability.

The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

ADB is composed of 68 members, 49 of which are from the Asia and Pacific region.

In recent years, Kyrgyzstan has maintained a strong development agenda to reduce poverty through inclusive economic growth.

With the support of ADB, the government has sought to reform legal and regulatory frameworks, improve the country’s business environment, make affordable finance available to all, improve the reliability of electricity services, and allow the people to become more employable.

The ADB-Kyrgyzstan partnership strategy aims to support growth and economic diversification, improve access to public and social services, and leverage regional cooperation.

Kyrgyzstan is a member of the Central Asia Regional Economic Cooperation (CAREC) Program.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94 

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