Kyrgyzstan Proposes $1.03B IDA Plan for Energy and Economy

The Ministry of Finance of the Kyrgyz Republic has submitted a draft framework agreement to parliament for a financing plan with the International Development Association (IDA) for the 2026–2028 period. The proposal aims to secure a total of $1.027 billion to be invested in the national economy, with a primary focus on the modernization of the energy sector and the implementation of strategic hydropower projects.

A total of $362.7 million from the package is allocated to the energy sector. A key priority is the construction of the Kambarata-1 Hydropower Plant – a major infrastructure project intended to significantly strengthen the country’s energy security. Part of the funding will also support the development of renewable energy sources, reflecting global trends toward green economies.

The financing is structured as $994 million in concessional loans and $32.7 million in grants. The loans carry a 25-year maturity with a five-year grace period on principal repayments. The interest rate is 1.5 percent per annum, calculated in Special Drawing Rights. Total interest payments over the life of the loans are estimated to be slightly more than $150 million.

The agreement also addresses other sectors, with the largest tranche of $450 million planned for economic support, particularly for stimulating the private sector. A further $180.2 million is designated for improving access to irrigation and clean drinking water, as well as for sanitation projects. An allocation of $61 million is set aside for digital transformation, which includes the creation of the “Sanarip Ordo” platform.