Bishkek residents will be able to take advantage of loans of up to 1 million soms to install heating ecosystems in their homes

Residents of the capital will soon be able to take advantage of loans of up to 1 million soms to modernise their homes by installing environmentally friendly heating systems as part of the Air Quality Improvement Project, implemented with the support of the World Bank.

Funding will be provided through commercial banks for the installation of various heating systems, including heat pumps, electric boilers and solar water heating systems.

Residents will be able to obtain loans of up to 1 million soms at a reduced interest rate to modernise their homes, and equipment suppliers will be able to obtain loans of up to 5 million soms for the supply and installation of heating equipment. The project aims to reduce air pollution in Bishkek, improve the health of city residents and strengthen the city's environmental sustainability. As part of its implementation, residents of the capital will have the opportunity to switch to more environmentally friendly and energy-efficient heating methods. Today, the heating sector in Bishkek still relies heavily on coal and firewood, especially in the private sector.

Most homes use outdated and inefficient heating systems, which leads to increased levels of harmful emissions into the environment. The measures taken under the project will significantly improve the health of city residents, reduce greenhouse gas emissions and increase the environmental sustainability of the capital.

Component 2 of the project, ‘Supporting the introduction of cleaner heating solutions,’ provides for the creation of conditions for the expanded use of clean heating technologies. It aims to develop the domestic market for these solutions, increase the investment attractiveness of modernisation for households, and support regulatory, institutional and policy mechanisms in this area.

«The project will reduce air pollution, improve the health of city residents and create conditions for long-term environmental sustainability. This project is being implemented for the first time in Central Asia, specifically in Kyrgyzstan, and we believe that it will bring real results», — said Bermet Musakozoeva, Director of the Project Implementation Department.

Component 2 is being implemented by the ORP under the Ministry of Finance, an organisation with considerable experience in managing credit lines in partnership with private and state-owned banks. An important part of the project will be an information campaign aimed at raising public awareness of the benefits of environmentally friendly heating, energy conservation and its impact on health. It is expected that the financed investments will enable different categories of households to choose the optimal solutions in terms of cost and technical characteristics.

The Air Quality Improvement Project will be implemented between 2023 and 2028 and is financed by the International Development Association (IDA) in the form of a 50-year interest-free loan with a 10-year grace period.