Third Village Investment Project (VIP) 

The Village Investment Project (VIP) is the first and one of the most successful ARIS projects. In 2007, Mr. Roger Robinson, the head of the World Bank office in the Kyrgyz Republic, noted that the Village Investment Project financed from funds allocated by the World Bank to the Kyrgyz Republic was among the top 3 projects financed by the World Bank around the world in 2006, and also emphasized that ARIS can serve as a model for many organizations in the republic. “There would be no success in the implementation of such a project as the Village Investment Project if there were no such agency as ARIS in the Kyrgyz Republic”, said Mr. R. Robinson.

Village Investment Project (VIP-1, VIP-2)

The ARIS completed the implementation of the First Village Investment Project in 2008. 4344 microprojects for a total amount of US $ 15 million were implemented in Phase I, while the share of community co-financing exceeded 40 % with the required 25 %, which shows the high mobilization of communities and the relevance of the microprojects chosen by them.

As of the end of 2012, 9883 microprojects were implemented throughout the country (educational institutions, hospitals, first-aid points, information resource centers, bridges, kindergartens, public baths, water, gas and power systems, sports facilities, etc.) under the Village Investment Project (VIP-1, VIP-2), of which 5539 microprojects have been implemented in Phase II. Communities disbursed US $ 15 million (grant) from IDA and £ 6.86 million (grant) from DFID, resulting in increased rural employment and income levels, improved rural infrastructure, improved governance at local communities level and strengthening the decision-making skills of local communities.

Third Village Investment Project (VIP-3)

To support the achievement of rural communities' goals and key local development objectives, ARIS with funding from the German Development Bank in Batken, Jalal-Abad and Osh oblasts and the funding from the International Development Association (World Bank) in Issyk-Kul, Naryn, Talas and Chuy oblasts began to implement the third phase of the Village Investment Project (hereinafter ‘VIP-3’).

Sources of Financing 


KfW German Development Bank

International Development Association (IDA)

Funding amount and project implementation area:

EUR 5.5 million (KfW grant)
EUR 0.850 million (contribution of the Government of the KR)
Batken, Jalal-Abad and Osh oblasts

US $ 12 million - IDA Loan
US $ 6.6 ,illion - IDA Grant
US $ 5.4 million IDA - Community Contribution
Issyk-Kul, Naryn, Talas and Chuy oblasts

The contribution of local communities participating in the VIP-3 is 3.75% of the ARIS allocated grant to the community.

Implementation period:


Project Objectives: (i) building the capaity of local communities for joint development and (ii) improving access to quality social infrastructure in the target areas of the project.

Achievement of the project development objectives is carried out through the implementation of three project components:

Component 1: Capacity Building for local communities and local government institutions in participatory local governance and development planning, training on local budget planning for local governments.

Subcomponent 1: Community Mobilization - is a process of working with local communities and local self-governing bodies to introduce them the principles of the project activities. This subcomponent is important for strengthening local self-governing bodies, which will encourage their involvement in making decisions on the development needs independently identified by village residents, and strengthening accountability to the population.

Subcomponent 2: Training - Three types of capacity building are offered to AO staff and community representatives under the VIP-3: 

  1. Special training for identifying and implementing social mobilization and investment under the VIP-3 (known as ‘specialized training’);
  2. General information about local government in the Kyrgyz Republic (known as ‘general training’); and
  3. Training and mentoring for women who take on leadership roles (known as ‘peer-to-peer training’).

Component 2: Village investment.

Within this component, two financing options are available, namely: 

  • Subgrants for the implementation of subprojects (SPs) included in the relevant Local Investment Plan and costing at least US $ 20,000 or more; and
  • Small grants for the implementation of microprojects (MPs) or pooled microprojects included in the relevant Local Investment Plan costing less than US $ 20,000.

Component 3: Project Management includes project management activities including project audits, provision of training to project executive body on project management, monitoring and evaluation, and the financing of operating costs.