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The Kyrgyz Republic to Improve Efficiency and Quality of Heat Supply with Support from the World Bank

WASHINGTON, July 6, 2023 – The World Bank’s Board of Executive Directors approved today $6.9 million in Additional Financing to the ongoing Heat Supply Improvement Project for the Kyrgyz Republic. This Additional Financing complements the original $41 million Heat Supply Improvement Project that was approved on October 27, 2017, and became effective on April 25, 2019.

The World Bank's support is part of a comprehensive roadmap for the country’s energy sector reforms over the next decade that has been developed to improve the financial performance and operational reliability of the electricity sector. "The World Bank is fully committed to supporting the efforts of the Kyrgyz Republic's Cabinet of Ministers to modernize and reform its energy sector," said Naveed Naqvi, World Bank's Country Manager for the Kyrgyz Republic. "Through the Heat Supply Improvement Project, we are helping enhance the energy efficiency and ensure greater reliability and security of heating services for the long heating season in the country. This modernization also contributes to climate change mitigation, adaptation, and resilient development in the Kyrgyz Republic."

The combined investments under the Heat Supply Improvement Project will help improve the efficiency and quality of Bishkek district heating through heating network reconstruction and rehabilitation, installation of individual heat substations and heat and hot water smart meters and spare parts. Furthermore, energy efficiency and seismic resilience investments will be implemented in selected 21 public buildings – schools, kindergartens, hospitals, and clinic centers – throughout the country. The expected key outcomes of the project include energy savings equalling more than eight million gigajoules of fuel and significnat improvements in the quality of heating for more than 165,000 beneficiaries.

The additional financing in the amount of $6.9 million will fill the financing gap and complete the rehabilitation of the “Vostok” heating transmission network. The funding gap has occurred primarily due to increased costs caused by inflation, supply chain disruptions from the COVID-19 pandemic, and the ongoing war in Ukraine. This additional financing will allow to implement all planned activities under the project and consequently help achieve the project development objective in full,” said Yae Jun Kim, World Bank’s Energy Specialist and Task Team Leader of the Project.

The loan for the Additional Financing for the Heat Supply Improvement Project is provided on highly concessional terms through the International Development Association (IDA). The project will be implemented through 2024 by the “Electric Power Plants” OJSC in compliance with strict international 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 30-year partnership between the World Bank and the Kyrgyz Republic has brought about significant development gains in all major sectors of the economy through investments of $2.8 billion in 150 projects, technical assistance, and advisory and analytics.



In Bishkek:
Jyldyz Djakypova
In Washington, DC:
Sona Panajyan


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