Energy Efficient Development of Small Towns in Kyrgyzstan

From May 2015 to June 2016, the experts of Unison Group conducted a technical energy efficiency assessment in the cities of Balykchy, Toktogul, and Sulyukta. With the support from the World Bank and The Community Development and Investment Agency of the Kyrgyz Republic - ARIS, all sectors of energy consumption (including electricity, heat, and fuel) in these cities were examined. To process the collected data, the experts used the international TRACE program. The outputs of the assessment are long-term plans for the energy efficient development of three cities until 2025.

The project aims to improve the quality of municipal services and to increase the energy efficiency and earthquake-resistance of the urban infrastructure in participating pilot cities.

Total funding for the Project is $14.4 million. This amount includes $6.6 million in loan funds and $5.4 million in grant funds from IDA (International Development Association), and $2.4 million co-financing by the Government of the Kyrgyz Republic.

In November 2015, a group of consultants together with the international consultant Rainer Benke conducted an energy audit of 4 schools and 2 kindergartens in the cities of Balykchy and Toktogul, and completed pre-technical and economic assessments in March.

The experts of Unison Group have done much:

  • To prepare design and estimate documentation for the cities of Balykchy and Toktogul that will further be used during street lighting rehabilitation in the abovementioned cities within the framework of the Urban Development Program (UDP).
  • To prepare a feasibility study for design and estimate documentation for the cities of Balykchy and Toktogul for future rehabilitation works to improve energy efficiency and seismic resistance within the framework of UDP.

The document proposes to reduce the consumption of heat energy at all sites, financed from the municipal budget, by 60%, to reduce energy intensity in water supply by 40%, to reach 50% of energy saving in street lighting, etc.

The Urban Development Project is included in the current Country Partnership Strategy between the Kyrgyz Republic and the World Bank for the 2014-2017 fiscal years.

Key milestones:

  1. After receiving the endorsement of the government of the Kyrgyz Republic and of the World Bank, the Urban Development Project was negotiated on 15 December 2015.
  2. On April 25, 2016, a financial agreement was signed between the IDA and the Government of the Kyrgyz Republic, represented by the Ministry of Finance of the Kyrgyz Republic.
  3. The draft resolution of the Government of the Kyrgyz Republic and the draft law on the ratification of the funding agreement were agreed upon by relevant ministries and agencies. Zhogorku Kenesh approved the draft law on the ratification of the funding agreement for the Urban Development Project in the third reading.
  4. On December 14, 2016, the President of the Kyrgyz Republic signed the Law on the Ratification of the Project.
  5. On December 29, 2016, the Urban Development Project came into force.

Research, carried out with GFDRR and ESMAP funding, helped to formulate the report.