New milestone agreements with Kyrgyz Republic

A mountainous, landlocked country at the very heart of Central Asia, the Kyrgyz Republic has seen significant growth in recent years despite a challenging environment. OPEC Fund President Abdulhamid Alkhalifa visited the country in September to encourage further progress and strengthen cooperation: "We are strong partners and this mission is a welcome opportunity to demonstrate our long-term support," he said.

The President signed two groundbreaking agreements with Minister of Finance Almaz Baketaev: A US$20 million loan will expand and modernize the water supply to 126 rural villages across Chui, Issyk-Kul and Osh regions, benefiting around 450,000 people. Meanwhile, the first policy-based loan in the country for a total of US$30 million will support key economic reforms creating the conditions for further growth and progress.

The new loans follow the signing of a Country Partnership Framework agreement for the period 2025-2028 on the sidelines of the OPEC Fund Development Forum in June. Speaking during the event's closing session, First Deputy Minister Choro Seyitov drew attention to the country's exposure to climate change: The Kyrgyz Republic, he said, is home to more than 8,000 glaciers, a third of all the glaciers in Central Asia. "They are decreasing at an alarming rate," he warned.

The OPEC Fund's expansion into the Kyrgyz water sector addresses key issues caused by climate change and will help modernize irrigation systems and rehabilitate reservoirs and other waterways. This aligns with the OPEC Fund's new US$3 billion Green-Blue Connect initiative and also represents an important diversification of the portfolio, where about a third of investments to date benefit the transportation sector.

A site visit to the Bishkek-Naryn-Torugart Road allowed the delegation to see the successful delivery of a vital project. The 539 km road is a major transport artery of the Kyrgyz Republic and part of the Europe-East Asia transport corridor. Sharing a long border with China, the Kyrgyz Republic has strong potential as a transport hub. But it is also a tourism gem yet to discovered: The stunning beauty of the landscape is celebrated in many poems and songs, among them the national anthem which begins with the words: "Land of snowy mountains, steppes and valleys."