BISHKEK, Kyrgyzstan, December 2. The Asian Development Bank (ADB) has approved a $22.58 million Small Expenditure Financing Facility (SEFF) for Kyrgyzstan, Trend reports via the bank.
The funding includes a $9.22 million grant from the Asian Development Fund and $13.36 million in concessional lending from ADB's ordinary capital resources. The SEFF will support the preparation and implementation of ADB-funded projects in sectors such as public transport, energy, urban development, and health.
The first initiative under this facility will focus on expanding Bishkek’s electric bus fleet and dedicated bus lanes, enhancing the city’s sustainable transport infrastructure.
According to the ADB, Kyrgyzstan’s economy, which heavily relies on agriculture and hydropower, faces significant risks from climate change. The SEFF aims to address these challenges by preparing projects that promote climate change mitigation and adaptation, including improving energy efficiency in buildings, advancing public transport, developing renewable energy, and enhancing water supply systems.
“The SEFF is an innovative modality as it enables flexibility in project preparation, pilot testing, and capacity development. The project will help pilot-test advanced technologies and innovative project financing and implementation approaches to help reduce project life-cycle costs, improve service efficiency and quality, and minimize negative environmental and social impacts,” ADB economist and project co-team leader Jules Hugot said.
To note, since joining ADB in 1994, Kyrgyzstan has received $2.9 billion in public sector loans, grants, and technical assistance from the bank.