Advancing Green Investment and Resilient Economic Growth Program (Subprogram 1)

Proposed

The proposed programmatic policy-based loan (PBL) from the Asian Development Bank (ADB) for the Advancing Green Investment and Resilient Economic Growth Program will help the Kyrgyz Republic strengthen fiscal and financial reforms to accelerate investment in green, inclusive, and resilient growth. The program is consistent with ADB's country partnership strategy for the Kyrgyz Republic, 2023-2027, specifically pillar 2 on building resilience to climate change and disasters and pillar 3 on strengthening governance and private sector development. The program is also aligned with ADB's Strategy 2030 Midterm Review and its strategic focus areas. Further, the program is consistent with the ADB's Climate Change Action Plan, 2023-2030 and ADB's Climate Action Road Map for Central and West Asia, 2025-2030. The program also is aligned with the Central Asia Regional Economic Cooperation (CAREC) program, including CAREC 2030, the CAREC Gender Strategy 2030, and the CAREC Climate Change Vision.The program impact is to provide better economic opportunities for citizens through sustainable, inclusive, and resilient economic growth. The program outcome is accelerated climate action, investment, and green economy transition. These will be achieved through the program's support in the following reform areas: (i) strengthening climate-aligned policies, coordination, and institutional arrangements; (ii) enhancing the enabling environment for mobilizing public and private finance for climate action; and (iii) strengthening adaptation priorities and resilience to climate impacts. The government has requested a concessional loan of $43.2 million from ADB's ordinary capital resources and a grant not exceeding $6.8 million from ADB's Special Fund resources (Asian Development Fund) to help finance subprogram 1. That would support 15% of the government's total development financing needs in 2025. Subprogram 2 will contribute $50 million to meet development financing needs in 2027.