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The EBRD has launched a major initiative to transform the water sector in the Kyrgyz Republic under the "Institutional Development Program for the Water Sector"
The European Bank for Reconstruction and Development (EBRD) has announced the launch of a transformational institutional development programme, marking a significant step towards transforming the Kyrgyz Republic's water sector. The project kicked off with an important meeting on 6 December, marking the beginning of joint work between CAICOnsulting and Austrian company Hydrophil.
Even in the 21st century, the Kyrgyz Republic faces a pressing problem: limited access to clean drinking water. This problem is particularly acute in cities where the infrastructure dates back to the 1930s. Against the backdrop of climate change and the forecasts for Central Asia, the timing could not have been better for the necessary reforms.
Responding to this urgent need, the EBRD intends to establish the "Kyrgyz Water Sector Resilience Framework" (KWRF). This innovative structure will provide sovereign debt facilities totaling up to €40 million for water utilities in all Kyrgyz cities. Capital grants from international donors are expected to co-finance the KWRF, emphasizing a joint international effort to address this critical issue.
The scope of the programme goes beyond financial investment. Key areas of focus include:
- Standardized Contracts: Development of standardized contracts in the public sector to streamline processes and improve efficiency in project implementation.
- Tariff Reform Action Plan: Implementation of a comprehensive tariff reform action plan to optimize financial structures and ensure sustainability of the water sector.
- Social Support Reform Plan: Develop a social support reform plan to alleviate financial constraints for vulnerable groups and ensure inclusiveness in the reform process.
- Contingency and emergency planning: Supporting the establishment of a robust contingency and emergency planning system necessary for the smooth running of public services, especially during crises.
Ruslan Tatikov, Deputy Minister of Finance, attended the programme launch ceremony and stressed the importance of the project for the country. Tatikov emphasized the critical nature of the necessary reforms and the positive effects they should bring.
To further strengthen the State Agency for Architecture, Construction and Housing and Communal Services under the Cabinet of Ministers of the Kyrgyz Republic, the EBRD is deploying a reform support team to the Department of Water Resources. This strategic move aims to strengthen the agency's capacity to deliver tangible and transformative results, marking a key milestone in the Kyrgyz Republic's journey towards a viable and sustainable water sector.
