EBRD provides loan for water upgrade in Kyrgyzstan

Business Materials 17 November 2016 16:05 (UTC +04:00)

Baku, Azerbaijan, Nov. 17
By Elena Kosolapova – Trend:
The European Bank for Reconstruction and Development (EBRD) is providing a loan for water upgrade in yet another Kyrgyz city, Kyzyl-Kiya under its framework to support water and wastewater modernization in the Kyrgyzstan, the bank reported.

The investment will be co-financed by the European Union’s Investment Facility for Central Asia (IFCA) which also has a focus on water and wastewater services and works with the EBRD to address the existing challenges in the sector. The two institutions are joined by the European Investment Bank (EIB) as a partner, which operates in the Kyrgyz Republic.

Out of the total financing package of $6.7 million (€6 million equivalent), the EBRD will provide a loan of up to $1.7 million (€1.5 million equivalent) to the Kyrgyzstan for on-lending to the municipality of Kyzyl-Kiya. The EIB will lend $1.13 million (€1 million equivalent), while the European Union’s IFCA will provide a capital grant of nearly $4 million (€3.5 million equivalent).

The EBRD loan agreement was signed today in Bishkek by the EBRD’s Director for Central Asia, Neil McKain; the Minister of Finance, Adylbek Kasymaliev; and the Mayor of Kyzyl-Kiya, Ermekbay Topchubayev.
Kyzyl-Kiya, a city of 45,000 inhabitants, is suffering from water shortages due to an outdated network of pipes with losses of nearly 80 percent. The funding will allow the city to undertake critical water supply improvements, introduce a modern metering system and upgrade operations and maintenance equipment.

The financing will be accompanied by technical cooperation programs of up to $1.5 million (€1 million), financed by the governments of Austria and the Czech Republic, the EBRD and potentially another international donor.
Including this project, the EBRD has invested over $27 million (€24.5 million equivalent) into water and wastewater modernisation in 12 cities in the Kyrgyzstan.
In total, the EBRD has invested about $710 million (€640 million) in the Kyrgyzstan.

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