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Saturday, November 18, 2017

World Bank to support Kyrgyzstan's energy sector development

The Board of Executive Directors of the World Bank recently approved $24 million to support development projects in the Republic of Kyrgyzstan.

The board also announced it will help support reform measures in the country.

According to Thursday's report, Kyrgyzstan has 16 percent of its industrial production energized by hydroelectric plants. This form of energy accounts for 4 percent of its total GDP, but the World Bank reports that serious structural problems are weakening the plants' respective output. This lack of upkeep on hydroelectric facilities has created a system that is inefficient and inconsistent.

Financial support from the bank will come in the form of $13.2 million in highly concessional credit and $10.8 million in grants that will be paid directly to the national budget.

“The policy areas of the Energy Sector (Development Policy Operation) are interlinked and essential for addressing energy supply reliability in a sustainable manner,” World Bank’s Senior Energy Specialist and Task Team Leader Ani Balabanyan said. “Firstly, improved financial viability of the energy sector through power and heating tariff reforms will allow investments in maintenance and system improvements, and procurement of fuel for the combined heat and power plants. Secondly, strengthened governance, transparency and accountability of the sector will ensure that increased revenues lead to improvements of sector operational and financial performance for the benefit of all groups of population."

Officials say these improvements and support for energy reform will aid the country's overall economic growth.

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