WASHINGTON – On January 12, 2012 The World Bank’s Board of Directors today approved an Additional Financing in the amount of US$ 15.8 million equivalent for the Bishkek and Osh Urban Infrastructure Project (BOUIP). The funding in the amount of US$ 8.7 million is a highly concessional credit, while the US$ 7.1 million is a grant.
The Additional Financing will scale up activities to enhance the positive impact of the Original Project on the living conditions in semi-informal settlements (novostroiki) and other communities in Bishkek and Osh, the two largest cities of the Kyrgyz Republic. It will also help continue the successful municipal and social infrastructure investments supported by the World Bank to the country’s twenty-three small towns under the Small Towns Investment Capacity Building Project, which closed on September 30, 2011.
“The Bishkek and Osh Urban Infrastructure Project is the World Bank's main operation in the Kyrgyz Republic to fight urban poverty”, says Alexander Kremer, Country Manager in the Kyrgyz Republic. “The project has visibly improved living conditions in the novostroiki of Bishkek and Osh. In Bishkek, 21 km of new roads provide all-weather access to main roads and public transport for about 30,000 residents of seven novostroiki. In Osh, about 13,000 novostroiki residents will benefit from improved access to water supply upon completion of the works on pumping stations and distribution networks. The World Bank is particularly happy that this additional financing will fund over 100 local micro-projects, which will help urban communities organise and meet their priority needs”.
Among other things, the Additional Financing will help to improve water supply, roads and availability of other basic infrastructure in Bishkek novostroiki and small towns, as well improve access to social services through small community investments in Bishkek, Osh, Jalalabad and all other small towns.
Social and community infrastructures will be implemented in all participating cities and small towns through a highly participatory process.
With project’s financing Bishkek plans the construction of the Bashkarasuu water production plant with about 6.5 km of transmission main (aqueduct) to connect the plant with the existing Bishkek Water Utility network and the Ak-Ordo novostroiki; this will also include construction of about 7 km of 10 kV high-voltage power supply line and two 630 kVA transformer stations at the well field site, the supply and installation of pumping and other technical equipment such as chlorination equipment, operation control devices, etc.
In Batken - extension of an existing (Tangi) infiltration drain: rehabilitation of existing well: construction of new chlorination plant: construction of distribution networks in Kyzyl Chol and Chet Bulak districts.
In Isfana - construction of a new well-field: construction of networks in town center: construction supply main and networks in Bozogul novostroika.
In Naryn - rehabilitation of well-field “West”: construction of supply main to Tosh Bulak novostroika.
In Talas - replacement of sewer collector; installation of standby sewer pump; replacement of water supply main.
The Project is expected to generate substantial net incremental economic benefits. Investment in potable water supply will generate direct benefits in terms of time saved in collecting water, reduced fuel costs for boiling unclean water and purchasing bottled water as well as indirect benefits in terms of reduced care costs and loss of income from water borne diseases. Improved access to potable water will also significantly stimulate small business development and facilitate the development public services within novostroiki.
The Additional Financing for the BOUIP will be implemented within three years by the Community Development and Investment Agency (ARIS).
The World Bank’s overall mission in the Kyrgyz Republic is to promote economic growth, reduce poverty, and encourage a better quality of life. 45 percent of the World Bank’s assistance to the Kyrgyz Republic is in the form of grants. The other 55 percent is in highly concessional credits – no interest, and only a 0.75 percent service charge. Credits are repayable in 40 years, including a 10-year grace period, while grants require no repayment. The financial assistance to the Kyrgyz Republic since 1992 amounts to over 1 billion, in the form of grants and highly concessional credits.