Donor Coordination in the Energy Sector

During 2008-2009 the donor community in the Kyrgyz Republic, if needed, will provide financial and technical assistance to the Government to support urgent and medium-term measures in the energy sector. Special attention will be given to  social protection measures for vulnerable groups of the population.

Joint Country Support Strategy donor projects in the energy sector

ADB
-  Regional Gas Transmission Project (2008),  $20 Mln grant
-  Valuation for KyrgyzGas Restructuring (TA, 2007),  $0.15  Mln  grant

EC
-  Interstate Oil and Gas Transport to Europe (INOGATE), regional programme covering all five Central Asian countries, 2005 – 2008, amount for KR not specified

Germany (KfW)
-  Advanced Measures Severelectro, 2006-2010, 10.43 Mln euro (10.23 loan,/0.2 TA)
-  Social protection measures to compensate tariff increases, 2008-2011, euro 4.00 Mln (Grant)
-  Loss Reduction in the electricity sector, 2008-2012, 23.2 Mln euro ( 21.4 Loan/Investment/1.8 TA)

Switzerland
- The Naryn III Electricity Losses Reduction Project, 2004 – 2q of 2008, $9.6 Mln

UNDP
-  UNDP Environment Protection for Sustainable Development programme activities, 2005-2010, $3 Mln

Analytical work

• Technical Audit of Oil and Gas Pipelines: Pipeline Network Information System in Kyrgyzstan, EC
• Heat Strategy Study, World Bank
• Regional initiative on ‘water-energy’ nexus, World Bank 

Useful documents and links:

1. The Central Asia Regional Economic Cooperation (CAREC) Program

The Central Asia Regional Economic Cooperation (CAREC) Program’s mission is development through cooperation. By promoting and facilitating regional cooperation in transport, trade, energy and other key areas of mutual interest, the CAREC Program helps Central Asian and neighboring countries realize their immense potential in an increasingly integrated Eurasia. By partnership with multilateral and other international agencies, the CAREC Program is a proactive facilitator of practical, results-based regional projects and policy initiatives critical to trade expansion, sustainable development and meeting new challenges.

Participating Countries: Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, Peoples Republic of China, Tajikistan, Uzbekistan

Supporting Multilateral International (MI) Agencies: Asian Development Bank, European Bank for Reconstruction and Development, International Monetary Fund, Islamic Development Bank, United Nations Development Programme, World Bank

2.   National Energy Program of the Kyrgyz Republic for 2008-2010 and the fuel and energy complex development until 2025 (pdf)

Kyrgyz Republic has sufficient fuel and energy resources. But fuel and energy complex (hereinafter - FEC) potential capacity is being used inadequately and the sector is experiencing certain economic difficulties. The country dependence on import of energy carriers, the share of which is about   50% of the total energy consumption, negatively impacts the condition of FEC and other sectors of economy.

In order to increase FEC efficiency, re-equip the technology, and develop the Energy sector , the Government of the Kyrgyz Republic made a decision on development of the National Energy Program of the Kyrgyz Republic for 2008-2010 and FEC development strategy till 2025 (hereinafter - NEP).

NEP has been developed in accordance with the laws of the Kyrgyz Republic, regulating country FEC development, based on resolutions of the Government of the Kyrgyz Republic dated February 15, 2006 N 71-р and dated June 10, 2006 N 310-р and provides complete and reliable energy supply for consumers based on a raise of own energy base, introduction of innovative technologies, considerable increase of functioning efficiency and achievement of a qualitatively new FEC status.

NEP is a document, specifying goals, objectives and main directions of a mid-term and a long-term energy policy of the state and establishing mechanisms of its implementation.