Kyrgyzstan ratifies credit and grant agreements with EBRD

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 and Sanitation System in Kerben 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 Water Supply and Sewage Systems in Kerbenn Project, signed on Sept. 13, 2019 in Bishkek, the Kyrgyz President’s press service said.

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on Dec. 26, 2019.

The Ministry of Finance of the Kyrgyz Republic is assigned to notify the European Bank for Reconstruction and Development on the implementation by the Kyrgyz Republic of domestic procedures necessary for the entry into force of the above agreements.

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

Funds for the implementation of the Rehabilitation of the Water Supply and Sanitation System in Kerben 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 6.5 million, of which:

- EBRD loan - EUR 2.5 million;

- European Union grant from the Investment Fund for Central Asia (IFCA) - EUR 3.0 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.