Agricultural Machinery Supplies to Kyrgyz Republic
On 27 December 2013, the Council of the Eurasian Economic Community Anti-Crisis Fund adopted a decision to provide an investment loan to the Kyrgyz Republic to finance the project Farming Machinery Supplies to the Kyrgyz Republic in the amount of US $20 million.
The project involves partial upgrading of the fleet of farming machinery in the Kyrgyz Republic—according to the Ministry of Agriculture of KR, over 90% of the farming machinery fleet has been operated for
In the process of the project implementation, it is planned to supply the machinery that should be urgently acquired or replaced. This is farming machinery that is most costly for agricultural producers, such as tractors with detachable equipment and grain harvesters.
The project is implemented in a chronically underfinanced sector of the economy—according to the official statistics, the fixed capital formation in agriculture has dropped since 2000 from 3.7% to 1.3% of total fixed capital formation.
If implemented, the project can reduce the risk of severe social and economic shocks, as the poverty rate is constantly growing in the republic, particularly in agricultural areas in the south of the country where the average poverty rate is close to 50%, inter alia, owing to the lack of fixed assets for agricultural production.
The project implementation will help generate up to 560 new jobs, while the number of citizens employed in agriculture is constantly declining. Over the last 12 years, the number of people employed in agriculture has dropped by 20% for a number of reasons, including the insufficient financing of the sector, lack of proper working conditions, and poverty.
Expected outcomes of the project implementation:
- Reduction of the cost of agricultural production by 2% through cutting down on overheads of farming machinery maintenance by 10% nationwide;
- Increase in the quantity of farming machinery units by 8.5% of that available as of 1 January 2013;
- Improvement of the level of investment in agriculture in KR with relevant upgrading of production;
- Improvement of the trade balance owing to greater agricultural exports;
- Reduction of the poverty rate of the rural population; and
- Facilitation of further integration between the ACF member states through improved agricultural exports from KR to the markets of the ACF member states and supplies of agricultural machinery to KR from the ACF member states.
Moscow, 17 November 2014. Last Friday the agreement between the Kyrgyz Republic and Eurasian Development Bank (EDB) on the provision of an investment credit to finance agricultural equipment supplies to Kyrgyzstan took effect.
The project is financed by the EurAsEC Anti-Crisis Fund managed by EDB and envisages the provision of US $20 million to the Kyrgyz Ministry of Finance to finance the purchases of agricultural equipment. The loan is extended for twenty years on special beneficial conditions (with an interest of 1% p.a. and a grace period of eight years).
03.07.14. The ACF Council decides to provide an investment loan to Armenia and approves concepts of two projects in Kyrgyzstan
Moscow, 3 July 2014. The Council of the EurAsEC Anti-Crisis Fund (ACF) decided to provide a US $150 million investment loan to Armenia to finance the construction of the North-South Road Transport Corridor (Phase 4). The resolution was based on the approval by Eurasian Development Bank (EDB), as the ACF Resources Manager, of Armenia’s application for project finance from the Fund.
The ACF Council also approved EDB’s proposal to use the World Bank Procurement Policies in this project and to involve WB specialists in project monitoring.
In addition, the ACF Council approved concepts of two investment projects submitted by Kyrgyzstan and requested EDB to select and hire consultants to evaluate them.
The projects include the reconstruction of the Toktogul HPP, including the replacement of Units 2 and 4 with the replacement or repair of auxiliary systems and station equipment, and the commissioning of Unit 2 at Kambarata HPP 2.
Bishkek, 20 March 2014. A meeting of Chairman of the Management Board of Eurasian Development Bank (EDB) Igor Finogenov with acting Prime Minister of the Kyrgyz Republic Jantoro Satybaldiev was held today in Bishkek.
20.03.14. EDB and Kyrgyzstan sign agreements on financing two investment projects with ACF resources
Bishkek, 20 March 2014. Two agreements on project financing——one for the Bishkek-Osh Road Rehabilitation and the other for agricultural machinery supplies——were concluded today in Bishkek between Eurasian Development Bank (EDB) and the Kyrgyz Republic. The documents were signed by Chairman of the EDB Management Board Igor Finogenov and Minister of Finance of the Kyrgyz Republic Olga Lavrova.
Both projects are to be financed using the resources of the EurAsEC Anti-Crisis Fund (ACF), which are managed by EDB.
Under the first agreement, US $60 million will be allocated to finance the rehabilitation of Jalal-Abad — Madaniyat section of the Bishkek-Osh road. The section stretches for 67 km connecting the northern regions of the country to the southern ones. It was not rehabilitated during the implementation of the first three phases of the Bishkek-Osh Road Rehabilitation Project, which was financed by Asian Development Bank (ADB).
EDB will be implementing its project in the format of co-financing with ADB, whose resources will be used to finance rehabilitation of Bishkek — Kara-Balta section of the road. In addition, ADB’s environmental and social safeguard policies and expertise will be used in the Project preparation and implementation. The financing is to be provided for 20 years on concessional terms (1 % annual with a grace period of eight years).
Under the second agreement, EDB is to extend to the Ministry of Finance of the Kyrgyz Republic US $20 million on the same terms to finance purchases of agricultural machinery for the Kyrgyz Republic.
Moscow, 5 March 2014. A pool of applications from farms for agricultural equipment, which will be supplied to Kyrgyzstan under the investment project funded by the EurAsEC Anti-Crisis Fund (ACF), should be begun to be formed. Alexei Cherekayev, head of Eurasian Development Bank’s (EDB) Department for ACF Operations, stated this today at the meeting with Kyrgyz Minister of Agriculture and Land Improvement Taalaibek Aidaraliyev.
Alexei Cherekayev believes that this should help to determine the characteristics and the range of equipment to be supplied, establish on-hand control over the selection of applications and secure preferences for equipment suppliers from the ACF member states.
The EDB delegation in Bishkek focused on the issues of signing and bringing into effect financial agreements between EDB and the Kyrgyz Republic under two ACF investment projects.
Moscow, December 30, 2013. The Council of the EurAsEC Anti-Crisis Fund (ACF) approved on December 27 the applications of the Kyrgyz Republic and Manager’s (Eurasian Development Bank) evaluation reports for two investment credits funded from ACF – «Bishkek-Osh Road Rehabilitation, Phase IV» and «Agricultural machinery supplies».
20.08.13. Vecherniy Bishkek (vb.kg): The Amount of the Credit to Finance Agricultural Machinery Supplies to Kyrgyzstan to be Approved by the End of the Year (Unofficial translation)
The Council of the EurAsEC Anti-Crisis Fund is planning to finally approve the allocation of a credit to finance agricultural machinery supplies to Kyrgyzstan by the end of the year. VB received this information today, on August 19, at the press service of the Eurasian Development Bank (EDB), Anti-Crisis Fund Resources Manager.
18.07.13. Sergey Shatalov, Deputy Chairman of the ACF Resources Manager`s Board: “Kyrgyzstan’s open economy is capable of dynamic recovery.” (Unofficial translation)
Bishkek. KyrTAG — Diana Esenaliyeva. Kyrgyzstan’s open economy is capable of dynamic post-crisis recovery and coping with financial challenges and risks. Sergey Shatalov, Deputy Chairman of the Management Board of the Eurasian Development Bank (EDB) as the EurAsEC Anti-Crisis Fund (ACF) Resources Manager, shared this opinion in an interview given to KyrTAG.
27.06.13. The ACF Council approves three preliminary applications for the investment projects in Armenia and Kyrgyz Republic
Moscow, 27 June 2013. Yesterday the Council of the EurAsEC Anti-Crisis Fund (ACF) approved the blueprints for three investment projects and Manager’s evaluation reports, on the respective preliminary applications for ACF funding. These resolutions by the ACF Council authorise the preparation of feasibility studies for the projects.