First Sustainable and Inclusive Growth Development Policy Operation

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The development objective of First Sustainable and Inclusive Growth Development Policy Operation for Kyrgyz Republic is to support the government to ensure sustainable and equitable energy supply; enhance social service delivery and climate resilience; and strengthen fiscal sustainability and improve the business environment. The operation is informed by the government’s priorities set out in the long-term National Strategy for Development (NSD) for 2018-2040, the medium-term National Program for Development (NPD) for 2021-2026, and the Green Economy Strategy for 2024-2028. The operation supports 4 of the 6 pillars in the government’s NPD: (i) the enabling environment for development, including the investment and business climate, skills development, and access to sustainable water services; (ii) sectoral development, including green and renewable energy generation; (iii) social development including economic inclusion programs; and (iv) special development priorities, including regional and green economic development. The program also supports women’s livelihoods by providing financial assistance and financial and vocational training for investing in small-scale businesses. This operation is aligned with the goals of the Paris Agreement including the targets of the Kyrgyz Republic Nationally Determined Contributions (NDC), and the Strategy of the Kyrgyz Republic on Adaptation (2020). The DPO is aligned with the WBG’s 2024-28 Country Partnership Framework (CPF) for the Kyrgyz Republic. The operation is aligned with the WBG’s Maximizing Finance for Development (MFD) approach and private investment generated through the project is counted as Private Capital Enabling (PCE). The operation directly supports the achievement of the targets of the Kyrgyz Republic NDC and several reforms directly contribute to national mitigation and adaptation priorities.