The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a new strategy for the Kyrgyz Republic, defining the Bank’s priorities in the country until 2029, the Bank has announced.
The strategic approach to operations in the country will be based on the following three pillars:
Support for private sector competitiveness and greater inclusion through increased productivity and access to export markets. The EBRD will promote diversification of the economy and stimulate trade and export activity through its Trade Facilitation Programme. It will promote greater financial inclusion of women, youth and other underserved groups, such as communities in remote and less advanced regions. The Bank will also stimulate the development of local capital markets and foreign direct investment. By providing expert advisory services and professional training to small and medium-sized enterprises (SMEs), the EBRD will help to build their capacity and accelerate their development. SMEs contribute more than 35 per cent to the Kyrgyz Republic’s GDP.
Develop sustainable and resilient infrastructure and connectivity. The EBRD will promote green energy generation and continue investing in renewable energy projects. Attention will be paid to greater water security and the sustainability of water supplies through better water sector management and irrigation. It will finance the construction of new grid lines, capacity upgrades and efficiency improvements in the energy transmission and distribution networks. In transport, the EBRD will channel funds for the construction, rehabilitation, maintenance and expansion of key road, rail and other networks, including the ones forming the Trans-Caspian Corridor. The Bank will also be helping the Kyrgyz Republic modernise its logistics sector.
Promote a green, resilient and well-governed economy. To achieve this, the Bank will be helping the Kyrgyz authorities to develop and implement green policies. It will offer finance and advice to companies, including SMEs, on climate risk management, climate governance and climate investments. In partnership with local financial institutions, it will expand its green finance programmes designed to help SMEs and households modernise production, increase efficiency and address pressing environmental issues. In the public sector, the EBRD will help to build capacity for project preparation and implementation, and promote reforms such as corporate governance in state-owned banks and enterprises. It will encourage further digitalisation of public procurement and continue fine-tuning the national public-private partnerships legislation.
Having invested almost €979 million in the Kyrgyz Republic through 247 projects, the EBRD is well positioned to assist the country in addressing these issues.
