The World Bank has approved $101 million for Kyrgyzstan. This is for a program called the First Sustainable and Inclusive Growth Development Policy Operation. The funding will support reforms in three main areas. These are the energy sector, social services, and the economy.
The money comes from the International Development Association. This is the World Bank’s lending branch for low-income countries. The package includes two parts, $68 million as zero-interest credit with 50 years to repay, and $33 million as a loan with a 12-year repayment period and a 6-year grace period.
In the energy sector, the funds will be used to improve electricity and heating systems. One goal is to revise the prices for electricity and heat, while protecting households that are most affected by cost increases. The funding will also help attract private investors to renewable energy projects. The government plans to increase transparency and open the sector for more competition.
The energy upgrades are intended to make power supply more stable and to reach more people. In addition, the reforms are meant to support long-term changes in the country’s economy.
In recent years, Kyrgyzstan has started small-scale renewable energy projects. These include solar mini grids in remote villages in Naryn and Osh regions. These projects range between 50 kilowatts and 150 kilowatts each. They help reduce dependence on diesel and improve access to power in areas not connected to the national grid.
Another effort is the pilot biogas project in Chui region. The project supports small farmers who process organic waste for gas production. Each unit produces around 20–30 cubic meters of biogas daily, helping families cook and heat water without using firewood.
Wind mapping studies have also been initiated in Issyk-Kul region, with the aim of identifying suitable sites for future wind energy projects. These studies are supported by international agencies and local universities.
