BISHKEK, Kyrgyzstan, September 20. The EBRD (European Bank for Reconstruction and Development) has approved a sovereign loan for Kyrgyzstan to fund the modernization of electric public transport in Osh city, Trend reports.
The loan amounts to 14.740 million euros and will be disbursed in two credit tranches. The first tranche, which is already committed, amounts to 9 million euros, while the second tranche, still uncommitted, is 5.7 million euros.
The borrower will be the Ministry of Finance of Kyrgyzstan. The funds will be further transferred to the Osh City Municipal Autotransport Company.
The project is co-financed with an investment grant of 8.3 million euros, provided in two tranches: the first tranche, up to 5 million euros from the EBRD Shareholder Special Fund (SSF), and the second tranche, 3.3 million euros, either from an international donor or the SSF. The total project cost is 23 million euros.
This project's goal is to connect a new residential area in the city to the public transportation system, enhancing service quality and reliability. It also encourages people to use public transportation instead of relying on private vehicles.
The EBRD has been engaged in cooperation with Kyrgyzstan since 1992. The bank's efforts in the country are centered around promoting sustainable growth, supporting the development of small and medium-sized enterprises (SMEs), enhancing the sustainability of public utilities, and strengthening the financial sector.