Project Description

Project Name: Kyrgyzstan Climate Resilience Irrigation Project - Feasibility study
Country: Kyrgyz Republic
Period: 4/2018 - 07/2019
Client: EBRD, Department of Water Resources and Land Improvement under the Ministry of Agriculture and Land Improvement of Kyrgyz Republic
Provided services description:
The Government of Kyrgyz Republic has requested EBRD to finance WS&I infrastructure in Jalal-Abad, Osh, Batken and Naryn regions (“Project Area” in total 15,000 ha) by providing a EUR 50 million loan to the Government (the “Project”) and concessional resources from an international donor. These four southern regions of Kyrgyzstan are most affected by smaller land holdings, lower per capita incomes, higher unemployment, lower human development indices and limited access to services in comparison to all other regions of the country, affecting particularly women and young people. The Project will mainly include construction of new main and secondary canals as well as intake facilities, ensuring that new infrastructure is resilient to climate change. It is expected that after the Project is implemented farming opportunities will be available for 40,000 households. At the same time, the Project will aim to increase access to irrigation to promote economic inclusion opportunities for women and young people.
The Project beneficiaries will mostly include Water Users Associations who will be paying to the Department of Water Resources and Land Improvement an irrigation service fee after the Project is implemented and water connections are established. In the longer term the irrigation service fee is expected to be the key source of EBRD debt service. DWRLI will be the implementing agency for the Project. The PIU established at DWRLI level will be responsible for the daily management, administration and procurement.
Investment Programme:
DWRLI proposed nine projects located in the above-mentioned four regions to be included the PIP and aimed at further intensive development of irrigation via increasing the irrigated areas. Feasibility studies of nine schemes suggests to take up all schemes, but at different tranches. In the first tranche, as a priority, five schemes have been selected based on water availability, including considerations for international agreements of transboundary water use, land availability, economic and social factors, environmental issues, as well as total investment costs and costs per ha. These schemes namely are: Ala Buga (Naryn Province), Nichke-Sai (Jalal-Abad Province), Shor-Talaa, Aravan Ak-Buura Canal, Shibe-Zhekendi (all in Osh Province). In addition, the first tranche has also been complemented by project for rehabilitation of pumping stations.
The proposed PIP, based on an available investment budget of € 70 million (without VAT and including project management, construction supervision, and front-end fee), schedules five schemes under the Tranche 1 plus pumping stations component. Total investment cost is € 78 million, including € 8 million of VAT. The total area of new irrigated lands covered by PIP projects is approx. 14.4 thousand ha.
Main activities:
• Review the present and planned irrigated agricultural activities in 4 regions of the Kyrgyz Republic and confirm the Project’s economic rationale, taking into account the agricultural market, water users and tariffs, and relevant organisational arrangements, and other agricultural initiatives at the basin level.
• Assess whether the Project is technically sound and sustainable, and whether the proposed investments are the most effective, least cost investment programme.
• Prepare the Scoping Report for Environmental & Social Impact Assessment.
• Formulate the PIP for the identified measures. This shall include an assessment of its economic, social, environmental and water-/energy-efficiency benefits.
• Carry out a baseline assessment to establish the current level of usage and yield of the target land areas and the estimated levels to be achieved as a result of the Project.
• Prepare financial projections reflecting the proposed PIP, and determining if the cash flow generated by the Project will secure EBRD debt service.
• Determine an efficient implementation strategy for the PIP.
• Review and describe the implementation arrangements, and assess the implementation capacity of DWRLI, in line with EBRD’s Procurement Policies and Rules and identify potential gaps and the support needed.
• Assess the potential impact of this investment on men and women users of the water services to be provided and, specifically, the extent to which this investment will not exacerbate existing gender inequalities but will rather help reduce gender gaps.
• Calculate EBRD’s standard measuring indicators and Green Economy Transition (GET) impact indicators.

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