DEVELOPMENT COORDINATION MATRIX. Rehabilitation of existing hydropower plants (Toktogul HPP, Kambarata-2 HPP)

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1 Country Partnership Strategy: Kyrgyz Republic, DEVELOPMENT COORDINATION MATRIX A. PATHWAYS FOR ADB TO SUPPORT GROWTH AND ONOMIC DIVERSIFICATION IN CPS Energy: Improved quality of energy supply Transmission and substation rehabilitation, SCADA and wholesale metering Rehabilitation of existing hydropower plants (Toktogul HPP, Uch-Kurgan HPP), pilot solar power projects Preparation of the Sector Master Plan, Asset and Inventory Revaluation, establishment of the Settlement Center, Business Processes Modernization and ERP, Corporate and Financial Audit; Public Information programs; piloting e-mobility EIB IsDB Rehabilitation of existing hydropower plants (Toktogul HPP, Kambarata-2 HPP) Regional transmission: Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) Energy efficiency; distribution rehabilitation (JSCs Oshelectro, Vostokelectro and Jalalabadelectro) Energy efficiency; policy advisory services Construction of transmission lines and substations; regional transmission (CASA-1000) EXIM Bank of China KfW SDC Modernization of Bishkek CHPP, construction of major transmission lines and substations (Datka-Kemin, Datka-South) Preparation for substation and transmission line construction Distribution rehabilitation (JSC Severelectro) Rehabilitation of an existing hydropower plant (Atbashi HPP) Transport: Enhanced connectivity and reduced regional imbalances and inequality PPP legal framework development and project preparation CAR corridors and connector roads rehabilitation Road sector institutional reform and road sector capacity building; road asset management system; and road safety PBM contract piloting and scaling up ACG, IsDB, Regional transmission (CASA-1000); distribution rehabilitation (JSC Severelectro); development policy operation program; Bishkek district heating; advisory services on tariff policy and methodology Regional road corridors rehabilitation Regional and national road corridors rehabilitation National road rehabilitation National and urban road rehabilitation; road asset management; road safety strategy EXIM Bank of China Regional and national road corridors rehabilitation; railway construction feasibility study National road rehabilitation; bridge and tunnel rehabilitation and asset management; road maintenance system development; institutional capacity building; road disaster prevention management; modernization of airport equipment. Cross-border facilitation

2 2 Public Sector Management: Support for economic diversification and improve private sector performance Deepening reforms for supporting new growth drivers and improving the organizational ability of government to attract and deploy investments Improving transparency and efficiency in public procurement through implementation of e- procurement system Improving access to finance for SMEs through credit lines to commercial banks for further on-lending. Improving institutional framework and financial services to support women micro-entrepreneurs IFC, Implementation of strategies for economically, environmentally, and socially sustainable growth; improve the productivity of selected value chains and export sectors; stimulate local economic development; and improve financial services for companies and agricultural producers along the promoted value chains. Promote private sector development by improving the investment policy and legal framework, strengthening financial sector stability, increasing access to financial services, and broadening private sector participation in the economy. Support fiscal management, strengthening of financial sector resilience, and enhancing confidence in the banking system. Helping expand and diversify exports and improve management of textile and clothing industry SMEs and implementing the 5-year Export Development Program. Improving public procurement rules and regulations Support growth and competitiveness of SMEs, the finance sector, and sustainable public infrastructure, including with private sector participation. Providing business advisory services for micro, small and medium businesses. USAID SO Development of infrastructure and capacity to regulate and monitor microfinance sector; support to SMEs Development of SME competitiveness and links among businesses and universities; improvement of responsiveness to the market demand for educated professionals; development of women micro-entrepreneurship Enhancement of the export potential for SMEs and competitiveness of the textile and clothing industry; development of the local consultancy market; removal of the regulatory barriers in tax administration/ inspections; strengthening of financial market infrastructure. Developing the national seed business to meet demand from international seed enterprises, and a master plan for quality and safety inspections of milk and dairy products. UNDP Support development of a favorable trade environment and capacity to bring local products to market

3 3, SO, DFID, Support competitiveness of firms in tourism, apparel manufacturing and construction materials, Development of integrated treasury system; automation of the Chart of Accounts; institutional and human capacity for PFM; social protection system, budget process; internal control and audit functions. B. PATHWAYS FOR ADB TO IMPROVE ACCESS TO PUBLIC AND SOCIAL SERVICES IN CPS Water Supply and Other Municipal Infrastructure and Services: More people with access to improved water supply and sanitation services Rehabilitation of urban sewerage systems, sanitation in Issyk-Kul oblast. Improvement of sustainability, operation and maintenance of water supply and sewerage facilities. Capacity building of water operators. Climate resilience and disaster risk reduction in water resources management, IsDB Rehabilitation of urban water supply and sewerage systems in cities. Improvement of solid waste management in Bishkek. Capacity building of water operators. Urban development. Street lighting in secondary cities. Energy efficiency of urban public infrastructure. Rehabilitation of water supply systems and sanitation in rural areas. Disaster-risk reduction activities. Designing the sanitation strategy in rural areas. SDC, SO Rehabilitation of water supply systems and sanitation in rural areas. Disaster-risk reduction activities. Water management, transboundary dialogue on water resources management; support for sustainable natural resource management. UNDP/ UNE Wash program at school (sanitation facilities), monitoring. Enhancing Transboundary Cooperation and IWRM in Chu-Talas River Basins. Education: Quality, resultsoriented skills development Modernization of TVET infrastructure and improved quality of training relevant to the labor market needs UNICEF, GPE,, UNICEF Construction of water and sanitation infrastructure in schools, communitybased kindergartens and medical facilities Preschool: D; school preparation classes Basic education: access; textbook development and printing; school AKDN Community-based kindergartens; D; entrepreneurship and life skills, vocational courses, infrastructure, equipment

4 4 Improvement of higher professional education infrastructure and advisory boards; teacher training TVET: adult education policy, entrepreneurship and life skills, curricula development. TEMPUS Programme: networking and partnership, quality assurance, introduction of two-tier system., USAID, AKDN, SFK SFK Curriculum reform; literacy and reading skills; teacher training; community engagement Higher education curricula Agriculture, Natural Resources and Rural Development: Strengthened agricultural services, improved climate change adaptation and disaster resilience of infrastructure and rural livelihoods Planned ADB activities to strengthen agricultural services delivery. Climate change and disaster resilience to be strengthened with a focus on water resources, floods, landslides, and drought risks. UNDP, UNE, OSCE Capacity building and equipment modernization of Kyrgyz Hydromet for improved forecasting and analysis. Seismic risk management Supporting climate resilience and transboundary water resources management in the Chu-Talas basin through several projects. Climate change adaptation investment Supporting disaster risk reduction in the transport sector C. PATHWAYS FOR ADB TO LEVERAGE REGIONAL COOPERATION AND INTEGRATION IN CPS Leverage Regional Cooperation CAR program building on ongoing support for economic corridors and special economic zones CAR sector strategies and sector action plans Regional transport links; power transmission; trade facilitation and trade policy UNESCAP UNDP Social protection; local infrastructure; governance; border management Trade facilitation; capacity building for single window development Coordination of EU financed regional programs on integrated border management; regional environment initiatives; migration governance SDC/SO USAID Export diversification; agriculture; tourism Legal and regulatory reforms to support trade facilitation; customs reforms; tourism development; agriculture Transport connectivity; transport infrastructure; agro-value chains Regional economic program; trade facilitation

5 5 CAR Institute outreach activities OD UNIDO Trade facilitation; power transmission; transport connectivity; agro-value chains Trade facilitation; transport and power sector connectivity Trade facilitation; transport connectivity Trade facilitation Transport connectivity; trade facilitation ACG = The Arabic Coordination Group, ADB = Asian Development Bank, AKDN = Aga Khan Development Network, CAR = Central Asia Regional Economic Cooperation, CHPP = combined heat and power plant, CPS = country partnership strategy, DFID = Department for International Development of the United Kingdom, = Eurasian Development Bank, = European Bank for Reconstruction and Development, = European Commission, D = early childhood development, EIB = European Investment Bank, ERP = enterprise resource planning, EU = European Union, EXIM Bank of China = Export and Import Bank of China, = German Technical Services (Gesellschaft für Internationale Zusammenarbeit), GPE = Global Partnership for Education, HPP = hydroelectric power plant, IFC = International Finance Corporation, IsDB = Islamic Development Bank, IWRM = integrated water resources management, = Japan International Cooperation Agency, JSC = joint stock company, KfW = German Bank for Development (Kreditanstalt für Wiederaufbau), OSCE = Organization for Security and Cooperation in Europe, PBM = performance-based maintenance, PPP = public-private partnership, SCADA = Supervisory Control and Data Acquisition system, SDC/SO = Swiss Agency for Development and Cooperation/State Secretariat for Economic Affairs, SFK = The Soros Foundation-Kyrgyzstan, SMEs = small and medium enterprises, TEMPUS = Trans-European Mobility Program for University Studies, TVET = technical and vocational education and training, UN = United Nations, UNDP = United Nations Development Program, UNE = United Nations Economic Commission for Europe, UNESCAP = United Nations Economic and Social Commission for Asia and the Pacific, UNICEF = United Nations Children s Fund, UNIDO = United Nations Industrial Development Organization, USAID = The United States Agency for International Development, = The World Bank. Source: ADB CPS Team.