Kyrgyz Republic: Kyrgyz Emergency Support for Private and Financial Sector Project (AIIB-000423)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kyrgyzstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 13, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Kyrgyzstan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jul 9, 2024

Disclosed by Bank Jul 9, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

PROJECT OBJECTIVE

AIIB provides financial support Kyrgyz Republic in order to support Micro, Small and Medium Enterprises (MSMEs) in response to and during the recovery from the COVID-19 crisis.

PROJECT DESCRIPTION

The project will be jointly co-financed with the World Bank (WB), as the lead co-financier, and will be comprised of:

  • Component 1: Reimbursable Financial Assistance (RFA) to Micro, Small and Medium Enterprises (MSMEs) via financial institutions selected to serve as disbursement administrators.
  • Component 2: Partial Portfolio Risk Sharing Facility (PRSF), offering a fee-based partial credit guarantee to share part of the credit risk in MSME credits from eligible Participating Financial Intermediaries (PFIs). The facility will offer guarantees on a portfolio basis, and all eligible MSME credits from the PFIs will be included automatically in the facility.
  • Component 3: Project Implementation, Coordination and Management.

AIIB will co-finance with the WB sub-components1.2 and 2.1, and component 3.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AIIB categorized the project E&S risk as 'FI'.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the AIIB, the IDA will provide US$ 25 million as a grant and US$ 25 million as a loan to the project.

The Project will make use of the AIIB CRF Special Fund Window (SFW) to add concessionality to the AIIB loan. The final amount required from the SFW will be calculated when the financial terms are determined and will be within the limit of USD 10 million per country.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The project involves participating financial institutions, in charge of disbursing the funds to MSMEs, according to the project objective.
At the time of disclosure, the participating financial institutions were not identified.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Natalia Sanz - Investment Operations Specialist
Email: natalia.sanz@aiib.org

World Bank Team Leader:

Andrea Mario Dall’Olio - Lead Financial Sector Economist
Email: adallolio@worldbank.org

Borrower and Implementing Agency - Ministry of Finance:

Suerkul Abdybaly tegin - Deputy Minister of Finance 
Email: s.abdybaly@minfin.kg 

Bermet Musakozhoeva - Director, Project Implementation Unit at the Ministry of Finance
Email: b.musakozhoeva@piu.kg

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

How it works

How it works