Memorandum signed between RKDF and APIU

Bishkek, Dec. 28, 2018. /Kabar/. The Russian-Kyrgyz Development Fund (RKDF) and the Agricultural Projects Implementation Unit (APIU) signed a memorandum of cooperation on the Access to Markets project, the press service of the Fund reported.

The document was signed by Head of the RKDF Erkin Asrandiev and Director of the APIU Saparbek Tynaev. The project involves the development of livestock breeding.

The memorandum is relevant as the Kyrgyz Republic joined the EAEU, which not only opened new opportunities for agricultural producers in selling their products, but also prompted a more active solution to the existing problems.

The purpose of the Access to Markets project is to contribute to rise incomes and enhancement of economic growth in pasture communities. The project aims to improve the access of small farmers, herders, agribusinesses (agro-processors, product collectors/wholesalers) to profitable markets for their products and their integration in these markets, which will lead to higher and more fair distribution of income.

The RKDF will render support by providing loans to project beneficiaries that meet the requirements of the RKDF, including both direct financing and lending through financial and credit institutions that are partners of the RKDF.

The total value of the project is $ 55.4 million. The law on ratification of the agreement between the Kyrgyz Republic and IFAD on the financing of the Access to Markets project was signed by the President of the Kyrgyz Republic on April 24, 2018. The project is funded by the International Fund for Agricultural Development (IFAD) and the Government of the Kyrgyz Republic for a period of 5 years (2018-2023).

The project consists of four components:

-Development of value chains for livestock products ($ 15.6 million);

-Financing of value chains of livestock products ($ 25.7 million);

-Modernization of the sanitary system of livestock breeding in Kyrgyzstan ($ 11.3 million);

-Project Management ($ 1.6 million). The total value of the Project is $ 55.4 million.