Second Regional Economic Development Project in the Batken region (RED-2)

 

The Second Regional Economic Development Project (RED-2) is focused on the facilitating regional economic development by increasing agricultural, improving basic municipal services and expanding the activities of small and medium-sized enterprises (SME) in the Batken region, and, in case of crisis or emergency, providing an immediate and effective response to eligible crisis or emergency.

Donor

World Bank (IDA)

Loan/Grant number (by agreement)

Loan No. IDA 7049-KG, Grant IDA D976-KG

ID Number

 

Sector

Agriculture, Urban Development

Total funding amount

US$ 50 million

Loan amount

US$ 25 million

Grant amount

US$ 25 million

Geographical coverage (regions):

Batken region

Date of the Coordination Council on Investment Policy (protocol number, date)

December 30, 2021

Date of the Donor Council (date)

March 3, 2022

Date of negotiations (order number, date):

April 15, 2022

Date of signing (order number, date):

April 20, 2022

Date of ratification (law number, date):

July 15, 2022, KR No. 66 2022

Project effective date:

August 17, 2022

Executing agency:

The Ministry of Economy and Commerce (MoEC)

Implementing agency:

ARIS

Project start date:

September 7, 2022

Project closing date:

December 2027

 

Project Components:

Component 1: Supporting municipal infrastructure, basic public services, and capacity building. This component will also include activities to help reconstruct public facilities and spaces affected by the recent armed clashes in April 2021 with a total anticipated cost of up to US $ 5-10 million, including (i) sewerage and water supply, stormwater and drainage systems, (ii) municipal and regional roads, sidewalks, and street lighting to improve access to key municipal services and markets; (iii) schools and kindergartens; (iv) other municipal assets such as parks and public spaces of high interest to the community. All intervention under this component will be led by climate related assessment to identify potential climate related impacts, risks and include relevant adaptation measures to make infrastructure climate resilient and, as a result, deliver reliable municipal services. This component will also support the Public-Private Cooperation (PPC) initiative to promote private investment attraction in the targeted sectors and locations.

Component 2: Strengthening Agriculture Competitiveness. This component will facilitate the development of select agri-food clusters with the aim of improving production and productivity among small agricultural producers within the selected clusters, strengthening partnerships between market actors within a cluster (agri-businesses and small agricultural producers), and putting in place the needed infrastructure for trade and logistics within clusters.

The project provides for a feasibility study for the modernization and equipment of laboratories with the development of technical specifications for laboratory equipment, and point centers, as well as an analysis of the need for advanced training of managers and specialists of laboratories and institutions.

Component 3: Promoting local economic development through the Small Grants Program. To boost local economic development through improved business practices, the project will support SME development through a training and small grants program. The small grants program will aim at supporting the launching of new enterprise activities and diversification and expansion of services offered by SMEs. The program will follow a phased approach, where the selected participants will undergo a robust training program, and those who successfully complete the training program will be eligible to apply for grant financing.

To address the issues of women’s low participation in the labor force and access to finance, the Small Grants Program will give preference to women, as follows: (1) In the training program, female applicants will be given a priority at the selection stage as well. This will give women an opportunity to gain practical knowledge and skills in doing business in the urban sector and entrepreneurship. (2) When evaluating business-plans for financing, women applicants will be given additional points. The same approach will be used for youth to promote young entrepreneurs at the local level and socially vulnerable groups, as defined by the Small Grants Handbook.

Component 4: Contingent Emergency Response Component (CERC). Following an eligible crisis or emergency, including climate related disasters, the recipient may request the Bank to reallocate project funds to support emergency response and reconstruction. An emergency eligible for financing is an event that has caused or is likely imminently to cause, a major adverse economic and/or social impact to the Borrower, associated with disaster.

Under this component, the Kyrgyz Republic may request the Bank to reallocate project funds to support emergency response and recovery.

On November 14, 2022, the World Bank granted its approval to trigger Component 4 “Contingent Emergency Response Component” (CERC), as requested by the Cabinet of Ministers of the Kyrgyz Republic for the restoration of social facilities (schools, kindergartens, first aid stations) damaged during the conflict.

Component 5: Operational Support. This component will support project implementation, including the project’s monitoring and evaluation system, communication strategy, application of safeguard instruments, training, and financing of incremental operating costs of the project implementing entity (PIE).

File name Action
РАМОЧНЫЙ ДОКУМЕНТ ПО УПРАВЛЕНИЮ ЭКОЛОГИЧЕСКИМИ И СОЦИАЛЬНЫМИ МЕРАМИ Download
ДОПОЛНЕНИЕ К РАМОЧНОМУ ДОКУМЕНТУ ПО УПРАВЛЕНИЮ ЭКОЛОГИЧЕСКИМИ И СОЦИАЛЬНЫМИ МЕРАМИ Download
ОСНОВЫ ПОЛИТИКИ ПЕРЕСЕЛЕНИЯ Download
ПЛАН ЭКОЛОГИЧЕСКИХ И СОЦИАЛЬНЫХ ОБЯЗАТЕЛЬСТВ Download
ПРОЦЕДУРЫ УПРАВЛЕНИЯ ТРУДОВЫМИ РЕСУРСАМИ Download
ПЛАН ВЗАИМОДЕЙСТВИЯ С ЗАИНТЕРЕСОВАННЫМИ СТОРОНАМИ Download
Охрана окружающей и социальной среды Download
Обновленные документы в связи с активацией компоненрта 4 ПРЭР-2 Download

Financial statements

File name Action
Финансовая отчетность проекта за период с 1 октября 2022 г. по 31 декабря 2023 г. Download
The project financial statements for the period from October 1, 2022 to December 31, 2023 Download

Фото галерея