WASHINGTON, April 19, 2022 – A new financial agreement signed today by the Minister of Finance Almaz Baketayev and World Bank Regional Director for Central Asia Tatiana Proskuryakova will support the Climate Resilient Water Services Project. The financing for this project is provided on highly concessional terms through the International Development Association. Half of the funding is allocated in the form of a grant, which requires no repayment, while the other half is a credit with a 0.75% administrative fee, the repayments of which are spread out over 38 years, with a six-year grace period.
The World Bank has a long history of supporting the water sector in the Kyrgyz Republic, including the improvement of rural water supply and quality of irrigation services, along with water resources management and support to water user associations.
“This new project will enhance water service provision across multiple water-using sectors in a sustainable and inclusive way, as well as promote integrated water resources management,” said Tatiana Proskuryakova, World Bank Regional Director for Central Asia. “The project will also ensure the creation of thousands of jobs and livelihood opportunities in construction and irrigated agriculture during the implementation period and after the project completion.”
The capital investments in the water sector will enhance rural and agricultural economic productivity through increased access to clean drinking water and sanitation in Issyk-Kul and Batken oblasts (regions), as well as rehabilitation and modernization of three irrigation schemes and improved management of water resources in Batken, Jalal-Abad and Osh regions of the country.
The direct beneficiaries of the project are almost 110,000 people in rural and peri-urban communities in the target areas, comprising farmers, low-income households, women, and youth. In addition to fulfilling the human right to water and sanitation, the benefits include livelihood opportunities and jobs, lower morbidity and public health risks from waterborne diseases, enhanced environmental quality and increased resilience to the impacts of climate change.
At the national level, the project will increase institutional capacities for climate-resilient water management. It will support the Government’s water supply, sewerage and irrigation sector development strategies, and water sector reforms. The project will also strengthen the Digital Water Information System, the operations of 21 water user associations, as well as river basin and dam management. These expected results will help reduce the risk of water shortages/droughts, improve the quality of water, and enhance overall resilience.
The Climate Resilient Water Services Project will be implemented over a seven-year period through 2028 by the Water Resource Service under the Ministry of Agriculture and the Department of Drinking Water Supply and Wastewater Disposal under the State Agency for Architecture, Construction and Communal Services. The Project will comply with relevant World Bank procedures and standards including procurement and financial management regulations and anti-corruption guidelines.
The World Bank’s overall mission in the Kyrgyz Republic is to reduce poverty and promote economic growth and shared prosperity. The Bank’s financial assistance to the Kyrgyz Republic since 1992 amounts to $2.1 billion in the form of grants and highly concessional credits.