AKIPRESS.COM - Asian Development Bank (ADB) Vice President Yingming Yang, who is responsible for operations in the South Asia Department and the Central and West Asia Department, in an interview with Tazabek spoke about 30 years of fruitful partnership, the most significant joint projects in Kyrgyzstan and priorities for future investments, climate action, private sector development initiatives and much more.

- The Asian Development Bank (ADB) has been a key partner in the Kyrgyz Republic's development journey for the past 30 years. What do you consider to be the most significant achievements and milestones of this partnership?

- Thank you for the opportunity to reflect on the Asian Development Bank's (ADB) 30-year partnership with the Kyrgyz Republic.

Indeed, as one of the country’s largest multilateral development partners, ADB has continuously supported the Kyrgyz Republic's development efforts with commitments of about $2.9 billion spanning loans, grants, and technical assistance. By investing in a wide range of sectors – from transport and energy to education, healthcare and the private sector – our interventions have touched the lives of millions of Kyrgyz citizens.

*As of 2024, ADB assistance to Kyrgyz Republic is about $2.9 billion

While it's challenging to single out individual projects, given the breadth and depth of our engagement, a few notable examples illustrate the tangible impact of our partnership.

First is ADB's support for enhancing the country's infrastructure. This includes significant investments in the transport and energy sectors. For instance, the upgrading of the Toktogul and Uch Kurgan Hydropower Plants, and the rehabilitation and reconstruction of about 1,000 km of major transport corridors and feeder roads. This has not only significantly improved energy power supply, domestic and regional connectivity, but also boosted economic activity across the country.

Another notable achievement is ADB's contribution to improving water supply and sanitation infrastructure and services.

Thanks to these projects, ADB has helped enhance agricultural productivity and ensure food and water security for the Kyrgyz people. This is particularly important in a country where agriculture is vital to the economy.

Toktogul hydropower plant section

Balykchy-Bashkuugandy road

Water tank in Naryn

Irrigation canal in Jalal-Abad

Second, ADB has strongly advocated for regional development and human capital enhancement. Through various projects, we have supported education, healthcare, and social services, thereby improving the quality of life for many Kyrgyz citizens. Additionally, ADB's focus on gender equality and climate change is helping to promote inclusive growth and environmental sustainability.

Diagnostic equipment purchased under the ADB project

Third, a critical aspect of our partnership has been the emphasis on supporting reforms that strengthen governance, public sector policies, and institutions. We recognize that creating an enabling environment for private investment is pivotal to unlocking the country's growth potential. To this end, we are actively engaging with the government to strengthen fiscal management, bolster anticorruption efforts, and enhance the corporate governance of state-owned enterprises.

These are just a few examples among many. And much more must be done to unlock the Kyrgyz Republic's potential. That's why we remain firmly committed to our partnership.

- As the Kyrgyz Republic continues to navigate the challenges posed by global and regional shocks, how is the ADB adapting its assistance and investment strategies to help the country achieve its long-term development goals? What are the ADB's priorities for future investments in the Kyrgyz Republic?

- The Kyrgyz Republic has shown remarkable resilience in navigating the compounded shocks of the pandemic, geopolitical risks, and the climate crisis. However, challenges remain, particularly in reducing poverty, ensuring sustainable growth, and building long-term resilience.

We have proactively refined our approach to ensure our assistance remains targeted, responsive, and impactful. Last year, we launched a new five-year Country Partnership Strategy for the Kyrgyz Republic focused on fostering inclusive, resilient, and private sector-led growth. ADB's priorities for future investments in the country are centered around three main pillars:

• enhancing economic opportunities for all

• building resilience to climate change and disasters, and

• strengthening governance and private sector development

Our evolving investment priorities are aligned with the country's most pressing needs. We are channeling resources towards renewable energy development, mainly hydropower. Climate-resilient infrastructure, affordable housing, digital transformation, and education and skills development are also high on our agenda.

To maximize the impact of our assistance, we are deploying a mix of financing modalities, including sovereign project loans and grants, and policy-based lending, to support critical reforms. We are also actively exploring opportunities to expand our private sector operations and promote public-private partnerships to catalyze additional investments.

- As Asia and the Pacific’s climate bank, could you please talk about ADB’s climate vision, and any recommendations on strategic focus for the climate agenda in Kyrgyzstan?

- The Asian Development Bank is firmly committed to addressing climate change, reflected in its vision and strategic focus. As Asia and the Pacific’s climate bank, ADB aims to deliver $100 billion in climate finance from its own resources from 2019 to 2030, including $34 billion for adaptation and resilience.

We are working closely with the government of the Kyrgyz Republic to build resilience to climate change and disasters, recognizing the unique challenges posed by the country's high-mountain ecosystems and the threats to critical sectors like agriculture and energy.

For Kyrgyzstan’s climate agenda, we will support the nation through knowledge transfer, capacity building, and investments to drive the country’s transition to low-carbon development. We recommend focusing on several key areas.

• Firstly, strengthening regional public goods. For example, by developing hydropower resources such as Kambarata-1, the Kyrgyz Republic can reduce dependency on fossil fuels, provide clean, inexpensive energy, and improve water availability for neighboring countries.

• Secondly, environmental sustainability must be prioritized. This means decarbonizing high-emission sectors and industries and ensuring infrastructure resilience.

• Thirdly, developing climate-smart strategic planning and regulatory frameworks to address climate impacts. This includes promoting climate policies that enhance food security and minimize losses from extreme weather events.

- Private sector development is crucial for economic growth and job creation. Can you share some insights into the ADB's initiatives to foster private sector growth in the Kyrgyz Republic?

- Private sector development is crucial to achieving higher, sustainable growth and creating quality jobs. Recognizing this, ADB has been actively supporting private sector development in the Kyrgyz Republic by adopting a holistic approach — upstream reforms and institutional strengthening, midstream advisory and project preparation, and downstream financing and mobilization — to promote private sector development.

We are working closely with the government to strengthen the legal, regulatory, and institutional frameworks that underpin private sector activity.

Another key focus area is expanding access to finance for private enterprises, particularly small and medium-sized enterprises (SMEs). Through our financial intermediation loans and guarantee facilities, we can partner with local banks and financial institutions to increase the flow of credit to SMEs.

We actively explore opportunities to expand our private sector operations and promote public-private partnerships (PPPs) to leverage private sector expertise and resources to deliver critical infrastructure and services. Our transaction advisory services are helping the government identify and structure bankable PPP projects in key sectors such as energy, digital, transport, and urban development. Just a few weeks ago, ADB inked two transaction advisory mandates for a Green Data Center and a 75-100MW wind farm in the Kyrgyz Republic. These are our first mandates in the Kyrgyz Republic and reaffirm ADB's long-standing commitment to the country and to being Asia’s climate bank.

Data center will become a key element of the country's digital ecosystem, providing modern infrastructure for data storage and processing

ADB also focuses on cross-cutting themes like promoting gender equality, supporting digital transformation, and fostering regional cooperation and integration. These efforts aim to create a more inclusive and sustainable economic environment where the private sector can thrive.

Finally, we continue to leverage ADB's regional networks and platforms, such as the Central Asia Regional Economic Cooperation Program (CAREC), https://www.carecprogram.org established and operational since 2001, to promote cross-border investment and knowledge flows.

With concerted efforts, we believe the Kyrgyz Republic can unlock the immense potential of its private sector to drive future growth and opportunity.

- As you have already mentioned, the ADB is known for its knowledge support as a key aspect of its partnership with member countries. What are some examples of the ADB’s knowledge-sharing initiatives in the Kyrgyz Republic, particularly those aimed at enhancing climate resilience and private sector development?

Knowledge work is integral to ADB’s engagement in the Kyrgyz Republic. Our Country Knowledge Plan for the Kyrgyz Republic for 2023-2027 focuses on several key areas.

In climate resilience, we provide strategic knowledge, such as assisting in developing national adaptation plans for urban and energy sectors, formulating the country’s Green Taxonomy with ministries and development partners, and offering technical guidance for climate-resilient agribusiness. ADB’s forthcoming Glaciers to Farms regional program is poised to enhance access to climate finance and strengthen regional institutional capacities. We’ve also been supporting the country’s efforts to build resilience to natural hazards, which are becoming more frequent and intense due to climate change.

On the private sector development side, ADB offers programmatic knowledge support to advance structural reforms, boost competitiveness, and facilitate more public-private partnerships. We also work closely with the government to promote green finance and sustainable banking practices.

Furthermore, many of ADB’s knowledge-sharing initiatives in the Kyrgyz Republic are through the CAREC, which includes workshops and seminars, regional forums and conferences, research and studies, technical assistance projects, and publications and reports. CAREC’s Climate Change Working Group and Climate Project Preparation Fund are especially relevant for enhancing climate resilience and accessing climate finance.

As the saying goes – “knowledge is power”. ADB’s knowledge work in the Kyrgyz Republic goes beyond sharing information to building partnerships and capacity. In close cooperation with the government and other partners, we are working to empower the people and strengthen institutions to promote prosperous, inclusive, resilient, and sustainable growth in the Kyrgyz Republic.