Kyrgyz Republic to Scale up the Impact of Community-driven Development, with World Bank Support

WASHINGTON, July 31, 2024-The World Bank's Board of Executive Directors approved today $27 million for the National Community Initiatives Project (NCIP) for the Kyrgyz Republic. The project aims to improve access to socio-economic infrastructure and increase economic opportunities at the local level, with a focus on women and youth.

"The National Community Initiatives Project builds on more than a decade of the Government's successful community-driven development initiatives and aims to scale up, standardize, and deepen their impact," said Hugh Riddell, World Bank's Country Manager for the Kyrgyz Republic. "The project will also build the capacity of local governments to work effectively with communities on development priorities, ensuring a more prosperous future for all."

The project will be implemented through 2029 by the Community Development and Investment Agency (ARIS). The Ministry of Economy and Commerce of the Kyrgyz Republic will oversee overall project coordination, working closely with other ministries and agencies.

"At the heart of this project is the establishment of a platform that will strengthen the relationship between local authorities and residents. It will help them jointly create development plans that address local challenges on service delivery, economic development, and climate resilience, and identify community priorities for investments and livelihoods activities. These priorities will guide project finance, but also extend to other sources of funding, aiming at more equitable and sustainable outcomes," said Christopher Finch, World Bank's Senior Social Development Specialist and the project's Task Team Leader.

Key features of the project include:

• Village Climate-Resilient Infrastructure Investments. The project will directly benefit rural populations in 40 Aiyl Aimaks (sub-districts), one per district across the country. Each selected sub-district will receive up to $450,000 for socio-economic infrastructure identified through a participatory village needs assessment and decision-making process. Eligible infrastructure may include kindergartens, schools, health facilities, water supply systems, and other climate-adaptive investments such as renewable energy sources, energy-efficient street lighting, drip irrigation, and disaster-preparedness.
• Grants for Climate-Smart Local Economic Development and Livelihood Activities. Fifteen competitively selected sub-districts will receive grants of $200,000 to $300,000 for local economic development. These grants will be awarded based on the effectiveness of their social mobilization efforts and the sustainability of their business plans. The objective is to enhance economic opportunities, enabling businesses to launch or expand while creating jobs for women, youth, and vulnerable groups. Economic sub-projects will target sectors such as agricultural processing, handicrafts, eco-tourism, and green enterprises.
• Capacity Building. The project will finance comprehensive training for local self-governments and communities in participatory needs assessment and planning; selection, management and monitoring of village investments; climate change; and economic empowerment.
• Women and Youth Empowerment. The project will: (i) engage women and youth in local planning and investment processes; (ii) ensure their priorities for local infrastructure and livelihood investments (such as medical facilities, schools, kindergartens) are addressed; (iii) provide tailored training to strengthen women's leadership in social and economic spheres. Support will also be offered for women's entrepreneurship, the establishment of private childcare facilities, and targeted youth engagement opportunities.
• Climate Resilience. Climate considerations will be integrated into all aspects of the project, including community mobilization, local government planning, selection of infrastructure and livelihood investments.

The National Community Initiatives Project for the Kyrgyz Republic is supported through the International Development Association (IDA), the World Bank's concessional lending arm. The project includes a $25 million zero-interest credit, with repayments eased over 50 years and a 10-year grace period. Additionally, it is co-financed with a $2 million grant, which requires no repayment, from the Early Learning Partnership (ELP), a World Bank-managed multi-donor trust fund that invests in early learning opportunities and outcomes worldwide.

The World Bank's overall mission is to end extreme poverty and promote shared prosperity on a livable planet. The Bank's program in the Kyrgyz Republic currently consists of 24 projects supporting the modernization and development of various sectors, with commitments of around $1.2 billion.