The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are advancing sustainable water resource management and agriculture in the Kyrgyz Republic by financing upgrades to existing water conveyance infrastructure and supporting the construction of new infrastructure.
A financial package of up to €37.96 million has been allocated, which includes (i) an EBRD loan of up to €26.93 million, (ii) a €1.03 million grant from the EBRD, and (iii) a €10 million EU grant under its Asia Pacific Investment Facility. This funding will support essential infrastructure upgrades, such as water intakes, pumping stations, main canals, and distribution networks in the Jalalabad and Naryn regions. These improvements are expected to reduce water losses, cut electricity consumption, and lower CO2 emissions.
This marks the second tranche of funding under the Kyrgyzstan Climate Resilience Water Supply project, which was approved by EBRD shareholders in 2022. The project aims to address the severe water stress facing the country, which impacts the economy and disrupts agricultural production.
The upgrades to irrigation systems are anticipated to promote sustainable, climate-resilient crop farming and create new jobs in the Kyrgyz Republic, where agriculture employs nearly half of the workforce.
Since its involvement in the Kyrgyz Republic began in 1992, the EBRD has invested over €1 billion through 257 projects, primarily focused on sustainable infrastructure and the private sector.