World Bank approves $101m funding for Kyrgyzstan’s energy and sustainable growth

This will help expand and modernise the country’s energy capacity.

The World Bank’s Board of Executive Directors has allocated $101m for the First Sustainable and Inclusive Growth Development Policy Operation for the Kyrgyz Republic.

In a statement, the international financial institution said the funding will help the Central Asian country “implement a comprehensive programme of reforms aimed at ensuring a sustainable energy supply, enhancing social service delivery, and strengthening fiscal sustainability and the business environment.”

The First Sustainable and Inclusive Growth Development Policy Operation is financed through the International Development Association, the World Bank Group’s concessional lending arm. The funding is composed of $68m zero-interest credit, to be repaid over 50 years, and a $33m zero-interest, shorter-maturity loan with a 12-year repayment term and a 6-year grace period during which no repayments are required.

Specifically in the energy sector, the World Bank funding will help modernise the industry, expand access, and support broader economic transformation.

“Key measures include revising electricity and heating rates whilst safeguarding vulnerable households, increasing transparency, and attracting private investment in renewable energy,” World Bank said.