The electricity sector in the Kyrgyz Republic faces challenges that have become more acute in recent years, driven by energy deficit due to insufficient generation, especially in winters. The total losses in the sector are about 20 percent of net generation, more than twice as high as commercial and technical losses in high- and some middle-income countries. About half of generation capacity and up to 70 percent of distribution assets are beyond their useful lives, leading to equipment failures and overloading across the country.  Moreover, the Kyrgyz Republic has one of the lowest electricity tariff rates in the world. The sector is heavily indebted, with cumulative debt of above KGS 137 billion (equivalent to over $1.5 billion) or around 20 percent of the GDP, placing a heavy fiscal burden on the country.

"Together we can implement anti-crisis measures to stabilize the economy and minimize economic risks for Kyrgyzstan", said Minister of Finance of the Kyrgyz Republic Almaz Baketaev. 

The project, with combined investments of $58 million, will finance urgently needed investments in four main areas: 1) rehabilitation and upgrade of distribution networks; 2) digitalization of distribution networks; 3) strengthening of social protection systems; and 4) institutional development to help design and implement priority energy sector reforms.

"Due to the cold weather, the Kyrgyz Republic has reached a historical peak of electricity consumption, and the energy sector professionals are working hard to pass through this winter season. There is an urgent need for the energy sector to modernize, grow sustainably and become an engine for the country’s green growth," said Naveed Hassan Naqvi, World Bank’s Country Manager for the Kyrgyz Republic. "The World Bank fully supports the comprehensive vision for the energy sector and reform roadmap over the next decade that have been developed by the Cabinet of Ministers of the Kyrgyz Republic."

Ambassador of Switzerland to the Kyrgyz Republic Olivier Bangerter noted that the new project will help to improve the financial performance, ensure a reliable electricity supply for the people and businesses, and create a supportive social protection mechanism to the vulnerable groups. "The project’s aim is to strengthen energy security of the Kyrgyz Republic; it will also lead to better use of water resources, something essential because of the consequences of climate change for the country. We hope that with investments in people, procedures and infrastructure, this project will contribute to a more reliable energy supply."

The Electricity Sector Modernization and Sustainability Project will be implemented through 2028 and will comply with strict international standards including procurement and financial management regulations and anti-corruption guidelines. 

With the generous contribution of USD 473,000 from the Government of Switzerland, WFP, in partnership with the Social Protection Department under the Ministry of Labour, Social Security and Migration, completed repair and construction works at the 6 priority SIIs in Chuy, Jalal-Abad, Talas and Batken provinces with worst WASH conditions (Water, Sanitation, Hygiene). In particular, better living conditions in terms of access to water, sanitation and hygiene have been established and the infrastructure of kitchen facilities have been improved.

In total 1200 residents, receiving social care services at SIIs, which include adult persons with disabilities and the elderly, now have access to proper WASH facilities, as well as balanced and nutritious meals. In partnership with the Ministry of Health and the Kyrgyz State Medical Academy named after I.K. Ahunbaev, WFP enhanced the physiological food norms (daily food rations for vegetables, bread, meat and etc) for all SIIs, which were not revised since 2007.

Previously, the SIIs used the same outdated food norms for adults and children, the project adjusted the norms for children and prepared a more balanced ration (less carbohydrates) for all residents of SIIs. With the updated food norms, a new decree was issued and accompanying regulation to implement food norms across all SII was developed. Additionally, WFP completed capacity strengthening activities for cooks and administration of all 16 SIIs in the country under the Ministry of Labour, Social Security and Migration on enhancing meal preparation and basic nutritional knowledge.