OREANDA-NEWS. April 02, 2009. The World Bank’s Board of Directors approved additional financing in the amount equivalent to US 4 million for the Small Towns Infrastructure and Capacity Building Project in the Kyrgyz Republic, reported the press-centre of World Bank.
 
“This additional financing will help finance a cost overrun in the completion of the urban infrastructure investment program of the ongoing project.  The development objectives and expected outcomes of the original project remain the same,” said World Bank Team Leader Jonathan Kamkwalala.
 
There are 23 small towns in the Kyrgyz Republic with populations ranging from 9 thousand to 70 thousand people.  The Small Towns Infrastructure and Capacity Building Project started in 2005, when after more than a decade of severe neglect, large portions of local service infrastructure, installations, and equipment deteriorated significantly and needed to be rehabilitated, rebuilt or even replaced entirely. 

The objective of the Project is to improve the availability, quality and efficiency of local infrastructure services for the population of participating small towns.  The Project finances rehabilitation and/or repair of basic infrastructure and utility service installations and equipment and assists local governments in increasing the effectiveness of the management of local infrastructure services.
 
As in the ongoing project, the bulk of the additional financing resources will be spent for rehabilitation and infrastructure construction activities.  In the words of acting World Bank Country Director Mehrnaz Teymourian, “This will create jobs in places that are hard hit by the economic difficulties the Kyrgyz Republic is currently facing”.
 
With the additional financing, the total allocation for the Small Towns Infrastructure and Capacity Building Project is now US\\$ 19 million equivalent.  The Project is being implemented by the Community Development and Investment Agency (ARIS), in close cooperation with the local governments and utilities of the participating towns.
 
The World Bank’s overall mission in Kyrgyzstan is to promote economic growth, reduce poverty, and encourage a better quality of life.  The financial assistance committed to the Kyrgyz Republic so far amounts to over US\\$ 840 million, in the form of grants and highly concessional credits.