WB to allocate Kyrgyzstan $46 mln for Heat Supply Improvement Project implemetation

Bishkek, Sept. 10, 2018. /Kabar/. The Budget and Finance Committee of Jogorku Kenesh (Kyrgyz Parliament) approved the concept of the Draft Law on the Ratification of a Financing Agreement between Kyrgyzstan and the International Development Association (IDA - a credit organization that is a part of the World Bank Group.) (the Heat Supply Improvement Project). According to the agreement, the Heat Supply Improvement Project is aimed at improving the efficiency and quality of heat supply to the project areas. The total budget is $46.0 million. The project includes three components: component 1 is aimed at increasing the efficiency and quality of the centralized heat supply systems in Bishkek ($31.0 million), component 2 will support the development and realization of a national programme for introduction of efficient and ecologically harmless heating stoves in households without access to the centralized heat supply system ($5.0 million), component 3 is intended for demonstrating the advantages of increasing the energy efficiency in public buildings ($10.0 million). It is expected that the World Bank will allocate financial means for the realization of component 1 under the following conditions (the basics): Sum: $31.0 million (loan – $23.0 million, grant – $8.0 million). Repayment period: 38 years. Grace period: 6 years. Interest rate: 0.75 %. For the implementatation of components 2 and 3, the World Bank will allocate grant funds.