The project will provide local self-governments and local communities of Naryn and Osh oblasts with new opportunities for capacity development. It will improve citizens’ engagement in budgetary processes at the local level and promote enabling environments for building dialogue between citizens and local self-governments.   

The events will be attended by representatives of the Government’s Office of the Kyrgyz Republic, the State Agency for Local Self-Governments and Interethnic Relations under the Government of the Kyrgyz Republic, representatives of the Government in Naryn and Osh oblasts, the Embassy of Switzerland, representatives of the rayon state administrations, as well as heads of all municipalities of Naryn and Osh oblasts.

“Switzerland has been providing long-term support to Kyrgyzstan in improving local self-governance and service delivery at the municipal level in various oblasts across the country already for a number of years. I am convinced that the project will now also contribute to more transparent budgetary processes and better services for citizens in the villages of Naryn and Osh oblasts”, said Lucien Aegerter, representative of the Embassy of Switzerland.

The project includes the provision of competitive grant support to address priority issues of local communities. This project was previously successfully implemented in Jalal-Abad and Issyk-Kul oblasts from 2012 to 2015, and is currently ongoing in Chui oblast. 

The project implemented by IFC in close collaboration with State agencies and the Ministry of Economy has helped the Kyrgyz government to introduce risk-based inspection system that has reduced the inspections burden: compliance costs for the private sector have been reduced by an estimated $5 million over the past few years. IFC support to investment policy reforms has generated an estimated $14 million additional investment to the economy. The tax system reforms, which was another component of the project has enabled businesses to save $ 2.2 million in 2016 only.

The Program has also ensures the development of relevant legislation as regards food safety, and initiated a number of important reforms to help local food producers to access new markets.  

“The government of the Kyrgyz Republic has been working on improving the business climate and we have positive results. With inspection numbers significantly reduced, the risk level assessments and planning of inspections are now fully automated,” said Daniyar Imanaliev, Deputy Minister of Economy of the Kyrgyz Republic. “However, making the country a better place for businesses is a long-term, continuous process. We thank IFC for its long-standing support and hope to work together on the next reforms.”

“Switzerland, through the State Secretariat for Economic Affairs (SECO), has been supporting since 2008 initiatives that aim to create a favourable business environment. This was done by supporting reforms in the field of tax administration and business regulation. A necessary condition for successful reform process is the involvement of the private sector in the project design and monitoring,” said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic.

“An attractive investment climate is a prerequisite for an economy that wants to grow and create jobs”, said Martin Naegele, IFC Country Officer. “IFC, together with the World Bank, has been helping the Kyrgyz government resolve legal and policy weaknesses, to improve the operating environment for business and unlock the country’s potential to attract new investment.”

The Swiss Government and WBG/IFC will continue supporting the Kyrgyz Republic to create more favorable business environment, attract and retain foreign direct investment, and unlock new markets for the local businesses. 

About the World Bank Group

The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. 

About Swiss assistance

The Government of Switzerland provides assistance for the development of the Kyrgyz Republic. The overall objective of its cooperation program is to promote peace and social cohesion as well as responsive and inclusive institutions and a sustainable development to improve the well-being of the population. Over the last 25 years Switzerland has granted more than CHF 360 million to Kyrgyzstan to support the transition process. For more information, please visit https://www.eda.admin.ch/bishkek. 

To learn more about the UK’s Department for International Development, please visit:  https://www.gov.uk/government/organisations/department-for-international-development.