Kyrgyz municipalities receive EBRD loan to improve water and wastewater services

Six water companies in the municipalities across the Kyrgyz Republic will be able to improve their water and wastewater maintenance services thanks to the delivery of new specialised equipment funded through a financial package of up to €2.4 million provided by the European Bank for Reconstruction and Development (EBRD), the EU, the European Investment Bank (EIB), and Global Environment Facility (GEF).

Water companies in the towns of Balykchy, MailuuSuu, Myrzake-Kurshab, Talas, Tokmok and Toktogul received 32 vehicles such as excavators, sewage and dump trucks, cranes and pick-ups, which will help them maintain the quality and reliability of services.

They also procured leak detection equipment, professional tools and laboratory equipment as part of the projects. The total of investment into the vehicles and maintenance equipment reached over €2.4 million.

The investment package for six municipalities includes long-term EBRD loans of US $4.02 million and €6 million, an EIB loan of €1.45 million, grants of €1 million and €1.15 million from the EBRD and the GEF, and €20.55 million of both investment and technical cooperation grant from the EU.

Newly acquired equipment will ensure uninterrupted supply of safe drinking water and better wastewater services to more than 165,000 customers in six municipalities. The procurement is an important component of projects aimed at the modernisation of water and wastewater infrastructure in the Kyrgyz Republic.

Technical cooperation grant funds of €5.67 million from the EBRD, Japan, Czech Republic, Finland and the EBRD's Early Transition Countries Fund are also helping the municipal water companies improve management and corporate governance principles. From 2014 to 2020, the EU supported the Kyrgyz Republic with €174 million of financing in areas such as education, integrated rural development and the rule of law. During the same period, the EU provided €90,5 million in grants to support investments, mainly in the water sector.

The EBRD has invested in 24 water and wastewater improvement projects in the Kyrgyz Republic, worth over €187 million, including €72 million worth of loans and €115 million in grants, mainly from the EU and the government of Switzerland.

The EBRD has launched a response and recovery package, which includes a Vital Infrastructure Support Programme, recognising the critical role of maintaining key infrastructure services.

To date, the EBRD has invested a total €795 million through 191 projects in the Kyrgyz Republic, with the majority of investments supporting private entrepreneurship.