ADB Financing to Strengthen Project Implementation in the Kyrgyz Republic

MANILA, PHILIPPINES (2 December 2024) — The Asian Development Bank (ADB) has approved a $22.58 million small expenditure financing facility (SEFF) that will support activities to boost project readiness and make project implementation more efficient and sustainable in the Kyrgyz Republic.

The financing includes a $13.36 million concessional loan and a $9.22 million grant from the Asian Development Fund. It will fund project preparatory support for the design and implementation of ADB-financed projects in public transport, energy, urban development, and health, among others. The first activity under the SEFF will support the preparation of a project to expand the electric bus fleet and dedicated busways in Bishkek.

“It is important that we implement strategically planned, well-designed projects with meaningful positive impacts,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This facility will ensure that ADB-financed projects respond to the needs of the country and improve access to public services for poor and vulnerable households.”

The Kyrgyz Republic is highly vulnerable to climate change because its economy is closely tied to agriculture and hydropower, which are affected by climate risks. The SEFF will help prepare projects contributing to climate change mitigation and adaptation, notably through improved building energy efficiency, public transport, renewable energy generation, and water supply.

“The SEFF is an innovative modality as it enables flexibility in project preparation, pilot testing, and capacity development,” said ADB Economist and project co-team leader Jules Hugot. “The project will help pilot-test advanced technologies and innovative project financing and implementation approaches to help reduce project life-cycle costs, improve service efficiency and quality, and minimize negative environmental and social impacts”.

This year marks the 30th anniversary of the partnership between ADB and the Kyrgyz Republic—a cooperation spanning more than 217 projects and technical assistance. Since the Kyrgyz Republic joined ADB in 1994, the bank has committed public sector loans, grants, and technical assistance to the country totaling about $2.9 billion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.