EBRD, EU Fund Water Infrastructure Upgrades in Kyrgyzstan for Sustainable Agriculture

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are advancing sustainable water resource management and agricultural practices in the Kyrgyz Republic by financing essential upgrades to existing water infrastructure and developing new systems.

A financial package of up to €37,96 million, consisting of (i) EBRD loan up to €26.93 and (ii) a 1.03 million grant from the EBRD, (iii) a €10 million EU grant under its Asia Pacific Investment Facility, The Caspian Post reports, citing Kyrgyz media.

This funding will support critical infrastructure upgrades, including water intakes, pumping stations, main canals and distribution networks in the Jalalabad and Naryn regions of the country. These upgrades will help to reduce water losses, cut electricity consumption, and lower CO2 emissions.

This is the second tranche of funds under the Kyrgyzstan Climate Resilience Water Supply project, which was approved by EBRD shareholders in 2022. The project will help to address the extremely high levels of water stress in the country, which affect the economy and disrupt agricultural production.

The improvements to irrigation systems are expected to promote sustainable, climate-resilient crop farming and facilitate the creation of jobs in the Kyrgyz Republic, where agriculture accounts for just under half of total employment.

The EBRD has been active in the Kyrgyz Republic since 1992, investing over €1 billion in the country through 257 projects, mostly in sustainable infrastructure and the private sector.