BISHKEK, March 26, 2025—The World Bank has approved an additional financing of $8.5 million to complement the ongoing Regional Economic Development Project for the Kyrgyz Republic. This flagship initiative, originally launched with $60 million in late 2020, seeks to enhance economic development across key sectors such as agriculture, tourism, and small and medium enterprise (SME) development in the country’s Osh city and Osh region.
"The Sulaiman-Too and Uzgen Archaeological Complexes, key investments in the RED-1 Additional Financing, both hold immense cultural and historical significance for the Kyrgyz Republic,” said Hugh Riddell, World Bank Group Country Manager for the Kyrgyz Republic. “Both sites have faced substantial degradation over the past 30 years, threatening their unique heritage. Revitalizing the Sulaiman-Too Complex is particularly crucial for regional development, given its potential to become a major tourist destination in the eastern Ferghana Valley."
Additionally, the project will continue to strengthen agri-food supply chains, improve agricultural practices, and foster partnerships between businesses and small farmers to enhance productivity and expand market access. The modernization of urban infrastructure is set to improve the quality of life for thousands of residents and visitors, while capacity-building programs will help local businesses thrive, creating new employment opportunities.
The additional financing will address the financing gap caused by various factors, including increased prices for construction materials exceeding the estimates, projected at the project preparation stage in 2019.
The additional financing is provided through the International Development Association (IDA), the World Bank’s concessional lending arm, in the form of a zero-interest, shorter-maturity loan, with repayments spread out over six years. The project will be implemented through November 2028 by the Community Development and Investment Agency (ARIS) under the overall coordination of the Ministry of Economy and Commerce of the Kyrgyz Republic. Strict international standards including procurement and financial management regulations and anti-corruption guidelines will be enforced.
The World Bank’s overall mission is to end extreme poverty and promote shared prosperity on a livable planet. The Bank’s program in the Kyrgyz Republic currently consists of 24 projects supporting the modernization and development of various sectors, with commitments exceeding $1.7 billion.
