The World Bank Supports Improvement of Infrastructure in Kyrgyz Villages

December 20, 2012

WASHINGTON, December 20, 2012 - The World Bank’s Board of Directors today approved an Additional Financing in the amount of US$ 4.2 million equivalent for the Second Village Investment Project (VIP-2) in the Kyrgyz Republic. US$ 2.3 million is a highly concessional credit, while US$ 1.9 million is a grant. The Additional Financing will help to upgrade infrastructure, such as bridges, water pipeline networks, and water intake facilities.

To address issues of limited access to basic services and infrastructure in rural areas, in August 2006 the Bank approved the Second Village Investment Project based on the capacity and experience created under the first Village Investment Project. The project has reached each of the 475 aiyl okmotu (local municipalities) in the country and has gained strong recognition among the rural population. More than 70,900 local government officials and community members have been trained in principles of budgeting and planning, and 1,698 villages have gained access to improved social and economic infrastructure.  Approximately 2.3 million people have benefited directly from the completion of about 6,000 micro-projects. Some examples include, over 93,000 new households connected to piped water, 676 km of rural roads have been rehabilitated, and 4,288 classrooms have been reconstructed or built.  

“The Additional Financing will fund reconstruction of more than 20 bridges, demanded by villagers in Manas, Kemin, Jumgal, Aksy, Uzgen, Chatkal, Nookat, and Alabuka rayons of the country,” said Alex Kremer, World Bank Country Manager. "The additional financing will also give people safe water by overhauling the intakes and distribution of six village water supply systems."

The Additional Financing for the Second Village Investment Project 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 US$ 1 billion, in the form of grants and highly concessional credits.


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