BISHKEK, August 29, 2007 – Today, a Financing Agreement for a US $16 million IDA grant was signed between the World Bank and the Kyrgyz Republic for the Second On-Farm Irrigation Project (OIP-2). Minister of Finance Akylbek Japarov signed the Agreement on behalf of the Kyrgyz Republic, and Country Manager Roger J. Robinson signed it on behalf of the World Bank. The new project will help sustain and further expand the achievements realized under the first On-Farm Irrigation Project, which focused on the establishment, training, and support of Water Users Associations (WUA), in addition to supporting the rehabilitation and modernization of the irrigation systems. The project will also receive funding from the Kyrgyz Republic in the amount of US$4.55 million. Agriculture plays a significant role in the economy of the Kyrgyz Republic. Over the past ten years, the sector has amounted consistently to 35-40 percent of GDP and ensured employment for over 50 percent of the country’s working population. The agricultural sector is predominantly characterized by irrigated agriculture, which covers about 1.05 million ha (75 percent of total arable land), rendering irrigated agriculture one of the most important economic sub-sectors of the country. During the past few years under the IDA-funded first On-farm Irrigation Project (OIP-1), the government has actively promoted the establishment of WUAs to take over the on-farm irrigation infrastructure and undertake the full responsibility for operating and maintaining systems under their management. OIP-1 has had considerable success with the development of WUAs and has played an important role in improving the performance of WUAs. There are presently around 450 WUAs formally registered that manage an irrigation area of about 710,000 ha and have more than 166,000 members. WUAs are now firmly established within the institutional structure of the irrigation sub-sector. Despite the activities carried out in the sector and technical and financial support received during the past ten years, there is a large unfinished agenda. The focus of assistance to WUAs needs to be now re-directed towards developing skills necessary to sustain their infrastructure and maximize its utilization. This will require assistance over the short- to medium-term especially with regard to financial sustainability and water management. The project will help put the irrigation service delivery on a sustainable basis and will contribute to increased agricultural productivity among farmers. World Bank Country Manager Roger J. Robinson explained that the World Bank has been the principal donor to assist the Kyrgyz Government with developing the irrigation and drainage sub-sector in the past ten years. “We have provided support through a number of projects that have significantly contributed to the recovery of the irrigation sub-sector in the Kyrgyz Republic, both technically and institutionally.” The Second On-Farm Irrigation Project will be implemented country-wide. It will target some 500 WUAs with further institutional development, and will assist with improving irrigation and drainage systems covering about 51,000 hectares. “The focus of assistance to WUAs under OIP-2 will be directed towards furthering the development of the technical and financial skills required to sustain their infrastructure and maximize its utilization,” said Joop Stoutjesdijk, World Bank Lead Irrigation Engineer in the Kyrgyz Republic. He added that the new project draws on the experience and lessons learned from the first operation and will make use of the institutions and mechanisms that were established under that phase. The Second On-farm Irrigation Project is expected to have a duration of five years, with a starting date in early January 2008.
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