EBRD helps boost tourism in Kyrgyz Republic

By Ina Coretchi

The EBRD is supporting the development of tourism in the Kyrgyz Republic with a loan to build the first economy class hotel in the Issyk-Kul Lake region in eastern part of the country, a popular holiday attraction for tourists from Russia, Kazakhstan and also from western Europe.

Despite the global crisis, the number of visitors coming to Issyk-Kul Lake continues to grow, as tourists turn away from more expensive holiday destinations. With over a million tourists expected this year, the demand for hotel accommodation in the region exceeds the current supply.

The Bank is providing a $1.2 million loan to Naryn LLC, a local real estate development company, to finance the construction of the first economy class hotel in the region, Elmira Inn.

Situated in close vicinity of the renowned health resort “Kyrgyzskoe Vzmorie”, to which the hotel’s guests will have access, Elmira Inn will be able to accommodate approximately 110 people.

The hotel will be built with the implementation of energy saving and renewable energy techniques, such as solar technology, a premiere in the Kyrgyz property market. The use of sustainable energy technologies will enable Elmira Inn to save about 480 MWh annually, an amount sufficient to supply with heat and electricity 60 average Kyrgyz households per year.

“We are pleased to support the construction of this modern and affordable hotel in the beautiful region of Issyk-Kul Lake. While demonstrating the benefits of renewable energy technologies, this project will bring quality hotel service to people with medium income, thus boosting further tourism in the Kyrgyz Republic”, said Kenji Nakazawa, Head of the EBRD office in the Kyrgyz Republic.

Kutubai Murzabev, Director at Naryn LLC, said: “We have established a very good working relationship with the EBRD through successful implementation of our previous projects. This new project is a continuation of our cooperation, which we hope will grow in future."

To date the EBRD has committed over €185 million in more than 50 projects in the infrastructure, corporate, energy and financial sectors in the Kyrgyz Republic, which attracted additional investments worth over €100 million.