Credit and grant agreements for rehabilitation of water supply system in Isfana ratified

Bishkek, Jan. 22, 2020. / Kabar /. President of the Kyrgyz Republic Sooronbay Jeenbekov signed the Law of the Kyrgyz Republic “On Ratification of the Credit Agreement between the Kyrgyz Republic and the European Bank for Reconstruction and Development on the Rehabilitation of the Water Supply System in the city of Isfana Project, signed on Sept. 13, 2019 in Bishkek, and the Grant Agreement between the Kyrgyz Republic and The European Bank for Reconstruction and Development regarding the investment grant from the European Union provided under the Rehabilitation of the Water System in Isfana Project, signed on Sept. 13, 2019 in Bishkek."

The Kyrgyz President’s press service said that the law was adopted by the Parliament of the Kyrgyz Republic on Dec. 26, 2019.

According to this Law, the Ministry of Finance of the Kyrgyz Republic is required to notify the European Bank for Reconstruction and Development on the implementation of domestic procedures necessary for the entry into force of the above agreements by the Kyrgyz Republic.

The law shall enter into force 10 days after the date of its official publication.

The financial resources for the implementation of the Rehabilitation of the water system in the city of Isfana project are provided by the European Bank for Reconstruction and Development (EBRD) and the European Union from the funds of the Investment Fund for Central Asia (IFCA).

The total project amount is EUR 5.0 million, of which:

- EBRD loan - EUR 1.6 million;

- European Union grant from the Investment Fund for Central Asia (IFCA) - EUR 2.4 million;

- EBRD grant - EUR 1.0 million (technical cooperation funds).

EBRD lending conditions: a loan is provided for a period of 15 years, including with a 3-year grace period and an interest rate of Euribor + 1.0% (including a floating rate). Project implementation period is 3 years.

Co-financing of the Government of the Kyrgyz Republic is not provided, respectively, the allocation of financial resources for the implementation of this project from the republican budget is not required.