Kant Water Supply Project


SECO has a longstanding partnership with the Kyrgyz Government aiming to develop and strengthen the urban water and sewerage sector of the country. Responding to the significant institutional and infrastructural needs, SECO engaged in 2013 in the Kant Water Supply Project (Phase I) on co-financing basis with EBRD. The municipality and water company have engaged in a public private partnership scheme. The project will rehabilitate the water and partly the waste water infrastructure of Kant and improve the management of the water company. The project with an overall budget of EUR 7,65 million, will be financed by an EBRD loan of EUR 1,5 mio., a grant by EBRD of EUR 0,45 mio. and a grant by SECO of EUR 5,7 mio.

Country/region Topic Period Budget
Kyrgyzstan
Urban infrastructure and utilities
01.06.2013 - 31.12.2019
CHF 6'940'000
Background The urban water supply and sewerage sector in the Kyrgyz Republic is decentralized and all the assets are owned by the municipalities. Due to the lack of capacities and financial constraints, water supply systems have seriously deteriorated, causing potential threats to health and the environment. In Kant, a private water company was formed after the collapse of the Soviet Union, who took the system on rent from the Municipality. The main obligation of the company is to provide safe water to private households and the commercial sector to an affordable price. This is the oldest and so far only Public Private Partnership in Kyrgyzstan.
Objectives The project aims to rehabilitate the water supply and partly the waste water system for the 22'000 inhabitants of the municipality of Kant and thus contribute to the sustainable economic development of the city.
Medium-term outcomes The project will improve the water company's capacities to manage its water and partly the waste water infrastructure with regards to financial and operational aspects- and thus continues guarantee the private and commercial customers an uninterrupted access to water and waste water services in good quality and at affordable costs. The framework conditions for the public private partnership model in Kant will be further strengthened.
Results

Expected results:   Reduction of physical and commercial water losses by 50%.Reduced water production by 30%.Thus, the Project shall lead to an annual reduction of operating costs by approximately half and savings of almost 1 Mio Kwh of electricity annually. Together with increased tariffs this will improve the financial standing of the Company. The metering will also encourage the careful use of water by the consumers and increase revenues as billing will be based on actual consumption.A new agreement with defined and accepted roles and responsibilities of the Municipality and the Water Company. The water distribution network and the water production are rehabilitated in priority areas. The level of water supply and the quality of the water has improved.


Directorate/federal office responsible SECO
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
  • European Bank for Reconstruction and Development


Budget Current phase Swiss budget CHF   6'940'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   9'300'000
Project phases Phase 1 01.06.2013 - 31.12.2019   (Current phase)