The Board of Directors of the World Bank has approved $30 million in financing for the implementation of a project to develop sustainable agro-food clusters in Kyrgyzstan. This funding will be complemented by an additional $5 million grant from the Global Agriculture and Food Security Program (GAFSP), bringing the total project financing to $35 million. The funds will be directed towards increasing productivity and climate resilience of dairy and horticulture agro-food clusters in Kyrgyzstan.
Aiming to support the country's economy, the World Bank's partnership framework for 2024-2028 prioritizes the agricultural sector alongside energy and water management in Kyrgyzstan. According to Tatiana Proskuryakova, the World Bank's Regional Director for Central Asia, this new project marks the initial step in realizing a comprehensive program to modernize, enhance competitiveness, and ensure climate resilience in the agricultural sector as envisioned by the government.
The project will provide investment credits to participating agro-food clusters, training and capacity building, improvement of seed systems, enhancement of animal husbandry, and information management systems. It will also focus on enhancing climate change adaptation and mitigation by introducing improved technologies and methods for producers, processors, and government services. Furthermore, it will facilitate the use of digital technologies for access to market information and climate-friendly practices.
The financing, sourced from the International Development Association (IDA) - the World Bank's concessional lending arm, will be provided as a zero-interest credit for 12 years with a six-year grace period for repayment. The project is set to be implemented by the Ministry of Water Resources, Agriculture, and Food Processing Industry and the Ministry of Finance by 2029.
