KfW Development Bank carries out its work on behalf of the German Federal Ministry for Economic Co-operation and Development (BMZ). KfW finances investment and accompanying advisory services in developing and transition countries. In our projects, we work together closely with the organizations of technical cooperation. In order to heighten the developmental benefit for the partner country and put the funds to more efficient use, KfW Development Bank focuses its support on four areas in which it has many years of experience and special know-how.
To improve the conditions for long-term economic development KfW Development Bank targets its support in the partner countries on energy supply, the expansion of transport and public transport systems, and the build-up of telecommunications networks.
Investments in social infrastructure give the people in the partner countries access to basic social services and, in this way, improve their quality of life. KfW Development Bank finances projects aiming to improve the drinking water supply, it finances disposal facilities for sewage and solid waste, family planning programmes and HIV prevention campaigns, the expansion of schools and health care centres as well as housing measures.
Efficient financial systems
The developing economies of the partner countries are strengthened through the promotion of efficient financial systems. KfW Development Bank helps the financial institutions in the partner countries with introducing payment transaction systems, setting up new loan and savings programmes, financing small and medium-sized enterprises and providing microfinance to micro enterprises.
Agriculture and resource protection
In order to ensure the basis of life for the rural population in the developing countries and to protect the natural environment as the basis for sustainable development, KfW Development Bank finances measures for the protection of tropical forests and the establishment of nature conservation areas.
KfW Development Bank in the Kyrgyz Republic
KfW Development Bank started co-operation with the Kyrgyz Republic in 1993. The projects in the middle of the 90ies aimed at rapid assistance to prevent de-industrialization and to support the emerging private sector through credit lines for SME. Assistance to the health sector also started in 1995 and focused on regional co-operation projects to fight tuberculosis and to improve mother and child care.
Since 2001, German Financial Co-operation is concentrating on support for economic reforms and development of the market economy. This rather broad focus has been further specified as: a) private sector development, b) financial sector development, c) economic development at rural community level. Assistance to the health and energy sector will also be continued, particularly for the projects with a focus on regional co-operation. A study and experts fund has been set up to finance improved project preparation and additional measures accompanying implementation.
Sustainable Economic Development
To improve the conditions for long-term economic development and build a strong backbone for the economy KfW Development Bank supports the founding and growth of small and medium private enterprises by giving them access to investment credits. The promotion of efficient financial systems is another means to achieve this goal. KfW helps financial institutions in the Kyrgyz Republic with introducing payment transaction systems, setting up new loan and savings programs, and refinancing equity participations. KfW also invests in municipal infrastructure and administration, giving the people in rural areas better access to social services and, in this way, improving their quality of life.
Through the German Financial Cooperation KfW Development Bank is supporting the Kyrgyz health Ministry’s national reform program Manas Taalimi. Its goal is to provide adequate access to health services to the whole population, to reduce the individual financial burden for medical treatment, to raise efficiency, quality and patient-orientation of health services. Several donors are involved in this important social program employing a joint Sector Wide Approach (SWAp). The combating of tuberculosis, mother-and-child-care programs and HIV prevention are other fields of KfW activities, as is the improvement of the country’s emergency system.
KfW finances several projects to boost both the technical and commercial efficiency of electricity distribution networks in the Kyrgyz Republic. This includes also the improvement of the billing and accounting system and the reform of electricity tariffs. The measures will enable distributors to invest more funds into maintenance and capacity of the network, helping to insure availability and reliability of energy supply.
As per 30th September 2008, total commitments made by KfW Development Bank amounted to EUR 164 million. Commitments have been allocated as follows:
The types of financing of these committed funds are as follows:
For details of KfW programs and activities worldwide, please visit KfW Development Bank
For more information about KfW activities in the Kyrgyz Republic and Central Asia in general, please refer to KfW Office Central Asia