• Rural Water Supply and Sanitation Improvement in Batken and Talas Regions Project (RWSSIP BT)
• Sustainable Rural Water Supply and Sanitation Development Project
• Naryn Rural Water Supply and Sanitation Development Program (NRWSSDP)
• The Regional Economic Development Project in the Osh region and Osh city (RED-1)
• Second Regional Economic Development Project in the Batken region (RED-2)
• CASA1000 Community Support Project and CSP Additional Financing
• Access To Markets Project (ATMP)
• Additional Financing for the Third Village Investment Project
• Heat Supply Improvement Project (HSIP)
• Подготовка Национального Проекта Инициатив Сообществ
• Проект «Секвестрация углерода посредством климатических инвестиций в леса и пастбища в КР» (СУПКИЛПКР)

Heat Supply Improvement Project (HSIP)

"Demonstrating the benefits of energy efficiency improvements in public buildings" aims to improve access to reliable and efficient heating services and the introduction of energy efficient technologies to reduce energy consumption by state and municipal institutions, buildings in the education and health sectors.

The Project objective is to improve the efficiency and quality of heat supply in selected project areas of the Kyrgyz Republic (KR).

The main Project objective is to improve energy efficiency and seismic stability in selected public buildings, mainly in the education and health sectors (e.g. schools, kindergartens, hospitals and clinics).

Implementing agency: Community Investment and Development Agency of the Kyrgyz Republic (АRIS).

Project consists of the following components and subcomponents:

Component 2.1: "Energy Efficiency Investments in Public Buildings". The component will finance investments in energy efficiency and seismic stability of selected public buildings, mainly in the education and health sectors (e.g. schools, kindergartens, hospitals and clinics), as well as related capacity development activities. Within the framework of the subcomponent, 2 main activities will be implemented:

Activity 1: "Investments in improving the energy efficiency of selected buildings": The activity will finance measures to implement investments in improving the energy efficiency and seismic stability of selected public buildings, as well as related consulting services.

Activity 2: "Energy Efficiency Capacity Building". It aims to strengthen local capacity to improve the enabling environment for energy efficiency, improve market opportunities and raise awareness of energy efficiency. Specific areas of support will be: training of local firms, energy efficiency awareness campaign, piloting of a benefit sharing scheme and/or co-financing, support to the implementation of the energy efficiency roadmap.

Component 2.2: "Project Implementation Support". The component will provide support for the effective implementation and management of the Project component, including support to: (i) ARIS PIU staff and facilitation of administrative assistance costs for ARIS staff (the so-called ARIS administrative pool); (ii) Project-related operational costs and trainings; and (iii) annual audits of the Project accounts.

Criteria for public buildings to participate in Project:

-      Public health, education and social security buildings owned by the state or municipality (kindergartens, schools, hospitals, clinics, orphanages, etc.);

-      Structural soundness of the building and no plans to close, downsize or privatize the building;

-      Use of a heating system based on electricity.

Works envisaged within the framework of energy efficiency improvements in public buildings:

1.    Heat insulation of walls;

2.    Replacement of windows;

3.    Replacement of exterior doors;

4.    Heat insulation of attic flooring /floor;

5.    Retrofitting, heat insulation of floor;

6.    Indoor ventilation system;

7.    Reinforcing seismic soundness of the building (reinforcing of building, reinforcing of foundation);

8.    Upgrading heating system + heat pump: - or centralized: ventilation/heating/air conditioning, heat exchanging unit and heat pump;

9.    Hot water supply (HWS) by heat pumps, solar collectors;

10.   Indoor LED lighting.

Deliverables:

-      The increased comfort, higher sustainability and better functionality of the public buildings selected under Component 3 (e.g. schools, hospitals, kindergartens, clinics, etc.) will primarily benefit patients, students (schoolchildren), toddlers, medical staff and teachers who work and spend most of their working hours in these facilities.

-      State/municipal agencies will benefit from reduced recurring energy costs and improved delivery of public services.

-      In addition, there will be indirect beneficiaries benefiting from the Project, e.g. by reducing electricity costs, the available funds can be used by municipalities to address other local issues.

-      In a number of selected cities/local governments where buildings will be retrofitted under the HSIP, a broader assessment of energy efficiency in various municipal sectors such as water supply, street lighting, district heating and public buildings.

-      Local companies (e.g. local energy auditors, design institutes, construction and supervision companies) will benefit from increased demand for their energy efficiency and construction services, along with increased capacity and expertise in identifying, preparing and implementing energy efficiency and seismic safety investments.

Within the framework of the "National Development Strategy of the Kyrgyz Republic for 2018-2040" approved by the Decree of the President of the KR dated October 31, 2018 UP No. 221, as well as the Program of the Cabinet of Ministers of the KR for the period 2018-2022 "Unity. Trust. Creation" approved by the Resolution of the Jogorku Kenesh of the KR dated April 20, 2018 No. 2377-VI, the key priorities in the heating sector include reducing the dependence of the Cabinet of Ministers of the KR on electricity for heating purposes in winter months and improving access to reliable and efficient heating services and implementation of energy efficient technologies to reduce energy consumption by state and municipal institutions, buildings.

The National Development Strategy of the Kyrgyz Republic for 2018-2040 establishes the priority of implementing large-scale programs for energy-efficient retrofitting of old residential and non-residential buildings, prohibition on new construction without the use of energy- and resource-saving high-efficiency technologies. Bringing the share of environmentally friendly energy sources (small HPPs, solar and wind power plants, solar collectors, heat pumps, use of biogas, etc.) to at least 50% of the total energy balance of the country.

The majority of public budget buildings were built 25-60 years ago. Old buildings do not have modern energy efficiency measures, which leads to high energy and heat losses, leads to inefficient use of fuel resources and, as a result, to increased burden on the budget of these institutions, distribution networks, as well as leads to deterioration of the environmental situation due to the increasing use of solid fuel due to insufficient electricity.

Improving energy efficiency in public education and healthcare buildings will reduce energy consumption and related peak loads, along with reducing ongoing public energy costs. Energy efficiency investments will also create economic benefits that were not quantified in this analysis, including improved services provided by these facilities, such as better childcare and better building functionality, as well as improved seismic safety measures.

Following receiving the required no objection from the Cabinet of Ministers of the KR and the World Bank, the HSIP was negotiated on September 12-18, 2017.

On January 26, 2018, a financial agreement was signed between IDA and the Cabinet of Ministers of the KR represented by the Ministry of Finance of the KR. The draft Resolution of the Cabinet of Ministers of the KR and the draft Law on Ratification of the Financial Agreement were agreed with the interested ministries and agencies. The draft Law on Ratification of the HSIP Financing Agreement was approved in three readings by the Jogorku Kenesh of the KR.

On February 5, 2019, the Law on Ratification of the Project was signed by the President of the Kyrgyz Republic. On April 25, 2019, the HSIP officially entered into force.

In 2020, an Additional Financing Agreement from the Swiss Government (SECO) in the amount of 2.66 million USD was entered into, which officially became effective on November 25, 2020.

Accordingly, the Project implementation was divided into three rounds:

Round 1: Таlas and Chui oblasts, as well as Bishkek city;

Round 2: Naryn, Jalal-Аbad and Issyk-Kul oblasts;

Round 3: Оsh and Batken oblasts, as well as Osh city.

Selected public buildings in Chui, Таlas oblasts and in Bishkek city under the First Round of Project:

Selected public buildings in Issyk-Kul, Naryn and Jalal-Аbad oblasts under the Second Round of Project:

*Selected public buildings in Osh, Batken oblasts and in Osh city under the Third Round of Project:

*the final list was identified following detailed energy and seismic audit