Contacts: In Bishkek: Jyldyz Djakypova, +996 312 610 650 jdjakypova@worldbank.org In Washington: Miriam Van Dyck (202) 458 2931 mvandyck@worldbank.org WASHINGTON, March 29, 2006 – The World Bank’s Board of Directors today approved an IDA grant in the amount of US$ 19 million for the Water Management Improvement Project for the Kyrgyz Republic. The Project will help to improve irrigation service delivery and water management, as well as national water resources governance. The Project is co-financed by the Kyrgyz Republic in the amount of US$ 4.7 million and by a US$ 4.4 million grant from the Government of Japan. Over the last decade, the agricultural sector consistently contributed around 35 percent to Gross Domestic Product and ensured employment for over 50 percent of the working population. Irrigation is a key input into profitable agricultural production, and with irrigated agriculture covering about 1.1 million ha (80 percent of total arable land), it is one of the most important economic sub-sectors of the country. “Unfortunately, maintenance of irrigation infrastructure has been under-funded since the end of the Soviet period, as a result of which many systems are in a seriously deteriorated condition,” said Abdimalik Anarbaev, Minister of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic. “Many schemes are incapable of delivering adequate flow rates during the period of peak demand. Some schemes are in danger of catastrophic failure with the strong possibility of the headworks or part of a canal being destroyed by future floods”. During the last eight years, the World Bank has been the principal donor to assist government with developments in the sub-sector. “The Irrigation Rehabilitation Project and the On-farm Irrigation Project have significantly contributed to the recovery of the irrigation sub-sector, but cannot come close to satisfying existing needs,” said World Bank Lead Irrigation Engineer Joop Stoutjesdijk. It is therefore important to continue supporting the government with rehabilitation and modernization of critical irrigation infrastructure and in its endeavor to reform the sub-sector, this time with a major focus on institutional and financial reform. The project will aim at improving the Department of Water Resources’ technical and financial performance, turning it into an efficient and client-orientated bulk water supply and management organization. “Considering the country’s broader water sector issues, the project will also assist government to achieve sustainable and efficient water resources management, including support to the implementation of the recently approved Water Code, leading to a more productive use of water resources, while protecting the water-related environment,” Stoutjesdijk added. With a total cost of US$ 28.1 million, the Project is expected to result in a sustainable increase in irrigated agricultural productivity. The majority of funding will be directed to rehabilitation and modernization of irrigation infrastructure. A wide range of works will selectively cover the whole country. The project will assist with further development of Water Users Associations, including Federations. Also, by the time the project is completed, water users and the nation as a whole will start seeing benefits of more productive use of water resources through the establishment of needed offices such as the State Water Administration and River Basin Administrations, and development of an integrated water resources management plan at river basin level. Minister Anarbaevnoted that there is support for the Water Management Improvement Project at the highest level in government. In his letter to the World Bank, the President of the Kyrgyz Republic Bakiev stressed the importance of World Bank’s support for the implementation of the Water Code and reforms in the water sector, as well as the irrigation sub-sector. The Department of Water Resources under the Ministry of Agriculture, Water Resources and Processing Industry will be the main implementing agency for the Project. The Water Management Improvement Project is expected to have a duration of five years, with a starting date of around July 1, 2006. -###- The World Bank is one of the largest sources of development assistance to the Kyrgyz Republic. Since 1992, the World Bank’s commitments to the country have totaled over US$738 million for 35 projects. The Kyrgyz Republic borrows from the World Bank on highly concessional terms – no interest, and only a 0.75% service charge. Credits are repayable in 40 years, including a 10-year grace period, while grants require no repayment. From 2003 to mid-2005, half of the World Bank’s assistance to the Kyrgyz Republic was in grant form. Effective July 2005, the Bank provides all funding to the Kyrgyz Republic on a grant basis. For more information on the World Bank activities in Kyrgyz Republic visit www.worldbank.org.kg |
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