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- €4.2 million financing package from EBRD and EU, grant support by Japan
- 26,000 local residents will have access to clean drinking water
- Sustainable water management resulting in energy and water savings
Residents of the Nookat city in the south of the Kyrgyz Republic will have access to safe drinking water and better sanitation thanks to the latest water supply improvement project financed by the EBRD and the European Union (EU).
The city’s water infrastructure, vital during public health challenges like Covid-19, will be improved thanks to a joint €4.2 million investment that includes a 15-year EBRD loan of €2.2 million and a capital grant of €2.0 million from the EU.
The financing will help the city of Nookat, which urgently needs to improve its outdated water supply network, replace water pipes, install water meters and fire hydrants, purchase specialised equipment and vehicles for the system maintenance. The investment will also support the renovation of water disinfection systems and the construction of an energy efficient pump station.
In addition, Japan will provide a grant of €600,000 through the Japan-EBRD Cooperation Fund, which will boost technical expertise and improve corporate practices, including accounting and operational management, of the municipal utility.
These improvements will enable the municipal water company to increase its customer base from current 10,000 to 26,000 users and become a financially sustainable enterprise, capable of maintaining the water system and delivering safe drinking water to users while strengthening their personal hygiene for many decades to come.
The company will also reduce water and energy losses saving around 1.65 million cubic metres of drinking water and 93,000 kilowatt hours of electricity annually, and improving the city’s resilience to climate change and optimising the company’s operating costs.
The EBRD has invested in 24 water and wastewater improvement projects in the country worth over €187 million, including €72 million loans provided by the Bank and €115 million grants mainly from the European Union and the Government of Switzerland. The EBRD has launched a response and recovery package, which includes a Vital Infrastructure Support Programme recognising the critical role of the maintenance of key infrastructure services.
During the period 2014-2020, the EU has supported the Kyrgyz Republic with €174 million in such sectors as education, integrated rural development and rule of law. Additionally, the EU has provided around €90 million grants to support investments, mainly in the water sector.
To date, the EBRD has invested €795 million through 191 projects in the economy of the Kyrgyz Republic, with a majority of investments supporting private entrepreneurship.