Published
07/03/2026, 17:16Sadyr Zhaparov signed a law ratifying the Framework Agreement on the Financing Plan for 2026–2028 between Kyrgyzstan and the International Development Association, a member of the World Bank Group. The document grants the country access to concessional financing totaling over $1 billion for the implementation of state investment projects and programs.
The agreement was signed on April 13, 2026, in Washington, D.C., and was approved by the Jogorku Kenesh on June 24. Now, the Ministry of Finance must notify the International Development Association that all domestic procedures have been completed, after which the document will enter into force.
The total funding for 2026–2028 will amount to up to $1 billion 16.16 million. The funds will be provided in the form of grants, concessional loans, and guarantees. In particular, the framework agreement provides for the possibility of the World Bank extending guarantee instruments to Kyrgyzstan in the amount of approximately $300 million. Such guarantees are not direct financing, but they allow the government to attract funds on more favorable terms by reducing risks for lenders.
In addition, the agreement allows for an increase in financing for individual projects by up to 20%, provided that the total program volume does not exceed the established limit and concessional resources are available from the International Development Association.
The agreement establishes uniform basic terms for MAR-21 loans.
These loans will be provided:
At the same time, the loans will be denominated in Special Drawing Rights (SDRs)—the International Monetary Fund’s international unit of account, whose value is determined by a basket of world currencies. This means that while the interest rate will remain fixed, the value of the obligations in dollars or KGS will depend on the SDR exchange rate.
If Kyrgyzstan chooses to receive financing directly in U.S. dollars, euros, Japanese yen, or British pounds, the rate will be recalculated to maintain the financial equivalence of the loan.
An annex to the agreement contains a preliminary list of projects that may receive funding over the next three years.
The largest of these are:
| Project | Preliminary Amount |
|---|---|
| Sustainable and Transformative Development Program for the “Kambarat-1” Hydroelectric Power Plant | $250 million |
| New Irrigation Project | $125 million |
| Second Operation for the Development of Sustainable and Inclusive Growth Policies | $100 million (or a PBG guarantee of up to $400 million) |
| “Sanarip Ordo” Digital Platform | $50 million |
| Central Asia Regional Electricity Market Interconnection Project | $40 million |
| Universal Access to Water Supply and Sanitation Program (Phase II) | $39 million |
| Renewable Energy Development (Phase III) | $25 million |
| Modernization of the Hydrometeorological Service of Central Asian Countries | $15 million |
| Renewable Energy Development (Phase II, guarantee) | $8 million |
A separate component provides grants for the preparation of new projects, including:
The framework agreement also provides Kyrgyzstan with access to several new financing instruments under the 21st replenishment cycle of the International Development Association—the World Bank’s three-year program covering the period from July 2025 to June 2028. These include a regional project financing facility, a crisis response facility, private investment support programs implemented jointly with the International Finance Corporation and the Multilateral Investment Guarantee Agency, as well as a grant-based project preparation facility that provides funding for the development of project documentation and the preparation of future investment projects.
The total volume of the program is approximately $100 billion, which is allocated to support low-income countries through concessional loans, grants, and guarantee mechanisms. It is from this fund that Kyrgyzstan will be able to receive financing for the implementation of priority state projects.
Thus, the ratified agreement does not provide Kyrgyzstan with more than one billion dollars in a single lump sum. Instead, it establishes a three-year framework for cooperation with the World Bank.
