Contacts
In Bishkek: Jyldyz Djakypova, +996 312 610 650
jdjakypova@worldbank.org
In Washington: Christina Lakatos +1 202 458 1343
clakatos@worldbank.org WASHINGTON, August 3, 2006 – The World Bank’s Board of Directors today approved an IDA grant in the amount of US$15 million for the Second Village Investment Project (VIP-2) for the Kyrgyz Republic. The new Project will sustain and expand the achievements realized under the first VIP by expanding coverage to all 473 aiyl okmotus (local self-governments) in the country. The new Project is co-financed by the Kyrgyz Republic in the amount of US$5 million. It is expected that the British Department for International Development will also support this Project with significant grant funds. The main implementing agency for the VIP-2 is the Community Development and Investment Agency (“ARIS”). In the Kyrgyz Republic, 65 percent of the 5.1 million population live in rural areas, and the rural population accounts for about 80 percent of the extremely poor. These people have limited access to essential health and education services. Most farming is subsistence oriented, and the limited access to essential infrastructure services impedes the emergence of rural non-farm activities. “The Second Village Investment Project supports the Government’s efforts to decentralize responsibilities to local self-governments and community-based groups to alleviate poverty,” said Chairman of the Supervisory Board of “ARIS” Kurmanbek Temirbaev. “The Project will promote good governance at the level closest to the people, provide the impetus for sustained economic development, and contribute to employment generation in rural areas.” The VIP-2 will apply a bottom-up approach to prioritization, planning and implementation, and direct assistance to rural communities, and rely heavily on the empowerment of grassroots institutions. The Project will draw upon the capacity created and build upon the experience gained and lessons learned under the first VIP. “The Project will extend the coverage of the first VIP to the country’s remaining 126 aiyl okmotus and continue support for 347 communities already participating,” said Executive Director of “ARIS” Elmira Ibraimova. There is support for the Village Investment Projects at the highest level in government. The President of the Kyrgyz Republic Kurmanbek Bakiev noted that the ongoing VIP is a model of transparency and lack of corruption. The VIP-2 will support the development of capacity at the community and village level to plan, prioritize, and implement local investments and to manage financial resources efficiently and transparently. The Project will provide community grants to eligible and participating communities to implement their agreed and approved community investment plans. Through a participatory and fully transparent process, villagers will assess and identify local problems, establish their own priorities for the grant scheme, and identify and prepare micro-projects that address their needs. Examples of projects implemented under the first VIP include rehabilitation of rural schools, rural healthcare facilities, roads, electric substations, and opening rural information-resource centers, among others. Participating communities, groups or community-based organizations will contribute to the investment costs in cash and/or kind and be fully responsible for the subsequent operation and maintenance of the facilities created. Investments will be implemented as much as possible by the local beneficiaries themselves and/or by local contractors so as to support the development of local small-scale enterprise. The Second Village Investment Project is expected to have a duration of four years, with a starting date of around November 2006.
### For more information on the World Bank’s activities in Kyrgyz Republic, visit www.worldbank.org.kg/projects
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