On April 18, the World Bank’s Board of Executive Directors approved the allocation of $120 million for the implementation of a sustainable financial market development project for micro, small, and medium-sized enterprises (MSMEs) in Kyrgyzstan, reports Economist.kg.
An additional $50 million in the form of a loan will be provided by the Asian Infrastructure Investment Bank (AIIB), bringing the total financing volume to $170 million.
The project is aimed at supporting sustainable economic growth and developing green financing. It envisions expanding business access to credit through wholesale financing, establishing a Green Finance Fund, and introducing a green guarantee mechanism via the Guarantee Fund.
“This project will provide direct support to micro, small, and medium-sized enterprises, as well as financial institutions, which in turn will contribute to sustainable economic growth and the creation of thousands of new jobs,” noted Hugh Riddell, Head of the World Bank Office in Kyrgyzstan.
The green guarantee mechanism will reduce banks’ credit risks and encourage financing for businesses implementing energy efficiency and renewable energy projects. The project is expected to attract up to $148 million in private investment over the next five years.
The project will be implemented under concessional terms through the International Development Association (IDA) and is scheduled to run until December 2030. Its implementation will adhere to international standards of procurement, financial management, and anti-corruption policies.
Additionally, the World Bank’s Board of Executive Directors approved $121 million for the first phase of the “Universal Access to Water Supply and Sanitation” program in Kyrgyzstan. The total funding for the entire program is projected at $400 million over 10 years.
Additional co-financing will be provided by: the Asian Infrastructure Investment Bank (a $50 million loan and a $3.75 million grant), the OPEC Fund (a $20 million loan), and the Swiss Agency for Development and Cooperation (a $9 million grant).
CentralasianLIGHT.org
April 21, 2025