BAKU, Azerbaijan, February 21. The Azerbaijan-Kyrgyz Development Fund (AKDF) plans to sign agreements with other development funds, a source in AKDF told Trend.
“One of AKDF's priorities is cooperation with international organizations to achieve its goals and objectives, as well as joint financing and implementation of projects. Based on this, we plan to sign agreements with other foundations,” the source explained.
However, the source pointed out that discussions with potential partners have not yet taken place.
''One example of such cooperation was the recent signing of an agreement with the Russian-Kyrgyz Development Fund (RKDF) for joint financing of investment projects in Kyrgyzstan. This agreement aims to support the modernization and development of the republic's economy through the implementation of projects that hold both economic and strategic significance for the country.
Investments will be made within the framework of joint financing, including lending and capital participation, as well as using other financial instruments to work with entities registered in Kyrgyzstan. Under the terms of the agreement, each project will receive at least $1 million in funding from each fund, the source added.
The source emphasized that the selection of projects for financing is currently being discussed. A detailed analysis of each project, its viability, and potential impact is being carried out.
The source clarified that the AKDF, RKDF, and other similar funds have priority sectors of the economy outlined in their founding documents, and projects should be focused on these industries.
Moreover, projects must have a significant socio-economic impact on the country and be financially attractive. An important factor in the decision-making process for financing large projects is also the impact on the development of related businesses. For example, if a project is a key element of a production chain or aimed at import substitution.
As the source stressed, one of the main advantages of cooperation between the two funds is the possibility of co-financing investment projects. This allows for risk reduction for each party.
"Each investment project will undergo a thorough examination before a financing decision is made," the source underlined.
Furthermore, on January 30, 2025, the AKDF Council approved the financing of two major investment projects. One of them is the construction of a small hydroelectric power station with a capacity of nine MW, and the second project is the construction of a multifunctional center. The total financing amount for these two projects is $12.4 million. Both projects are planned to be implemented in Kyrgyzstan.
The Azerbaijan-Kyrgyzstan Fund was established following the agreement between the Government of Azerbaijan and the Cabinet of Ministers of Kyrgyzstan dated October 11, 2022, with an authorized capital of $25 million. The activity of the fund is aimed at promoting economic cooperation between the two countries. In the course of the state visit of the President of Kyrgyzstan Sadyr Zhaparov to Baku on April 24, 2024, an additional agreement was inked that increased the authorized capital of the Fund to $100 million.
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