Kyrgyz Republic: Building Resilience with Active Countercyclical Expenditures Program

Sovereign Project | 56150-001

The BRACE Program will help support government priorities to help poor and vulnerable groups, promote food security and price stability, and support employment and businesses affected to contain the effects of the Russian invasion of Ukraine that is compounding significant adverse social and economic impacts from the COVID-19 pandemic. The expected impact of the program is inclusive economic growth sustained and income inequality reduced. The outcome of the program is impact of exogenous shocks effectively managed and immediate adverse socioeconomic effects reduced. The program outputs are (i) measures to support food security and price stability strengthened, (ii) measures to support social protection and safety net programs of the government implemented, and (iii) measures to support employment through small and medium-sized businesses implemented. The program is aligned with all seven operational priorities of Strategy 2030 of the Asian Development Bank (ADB).

Project Details

  • Project Officer
    Gafurov, Bobir Baisovich
    Central and West Asia Department
    Request for information
  • Country/Economy
    Kyrgyz Republic
  • Sector
    • Public sector management
Project Name Building Resilience with Active Countercyclical Expenditures Program
Project Number 56150-001
Country / Economy Kyrgyz Republic
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0860-KGZ: Building Resilience with Active Countercyclical Expenditures Program
Asian Development Fund US$ 25.00 million
Loan 4241-KGZ: Building Resilience with Active Countercyclical Expenditures Program
Concessional ordinary capital resources lending US$ 25.00 million
TA 6984-KGZ: Supporting the Building Resilience with Active Countercyclical Expenditures Program
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Social protection initiatives
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The BRACE Program will help support government priorities to help poor and vulnerable groups, promote food security and price stability, and support employment and businesses affected to contain the effects of the Russian invasion of Ukraine that is compounding significant adverse social and economic impacts from the COVID-19 pandemic. The expected impact of the program is inclusive economic growth sustained and income inequality reduced. The outcome of the program is impact of exogenous shocks effectively managed and immediate adverse socioeconomic effects reduced. The program outputs are (i) measures to support food security and price stability strengthened, (ii) measures to support social protection and safety net programs of the government implemented, and (iii) measures to support employment through small and medium-sized businesses implemented. The program is aligned with all seven operational priorities of Strategy 2030 of the Asian Development Bank (ADB).
Project Rationale and Linkage to Country/Regional Strategy The exogenous shock triggered by the Russian invasion of Ukraine has further driven up prices for food and fuel, resulting in fluctuation of remittances inflows and affecting trade. It is impacting sectors that the poor are most dependent on (trade and migration) and hurting the poor through high inflation when Kyrgyz Republic has limited fiscal space to support the vulnerable population. 12-month price indices for key food items like bread and cereals reached 120.2% in April 2022, while for oils and fats, they increased to 118.7%. This puts the well-being of the population and economic recovery at risk in 2022 and beyond. The government adopted several resolutions in 2022 aimed at addressing the negative impact of the shock on the poor and vulnerable. The countercyclical development expenditure program comprises measures across three support areas: (i) support for food security and price stability; (ii) support for social protection and safety net programs; and (iii) support of employment and small and medium-sized enterprises. The government has requested (i) a concessional loan of $25,000,000 from ADB's ordinary capital resources, in concessional terms, and (ii) a grant not exceeding $25,000,000 from ADB's Special Funds resources (Asian Development Fund) to help finance the program.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No environmental impact is expected.
Involuntary Resettlement No involuntary land acquisition and resettlement is expected.
Indigenous Peoples No adverse impacts on indigenous peoples is expected.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders, including (i) Ministry of Finance, (ii) Ministry of Economy and Commerce, (iii) Ministry of Agriculture, (iv) Ministry of Education and Science, (v) Ministry of Labor, Social Protection, and Migration, and (vi) other key development partners were consulted to identify the impacts of the COVID-19 pandemic and the Russian invasion of Ukraine and align ADB's assistance with government's needs and the support by development partners.
During Project Implementation Stakeholders and civil society will be consulted through the TA during program implementation.
Responsible ADB Officer Gafurov, Bobir Baisovich
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 17 Mar 2024
Fact Finding 16 May 2022 to 25 May 2022
MRM 25 Aug 2022
Approval 31 Oct 2022
Last Review Mission -
Last PDS Update 03 Nov 2022

Grant 0860-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2022 11 Nov 2022 21 Dec 2022 31 Mar 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 25.00 23 Dec 2022 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Dec 2022 25.00 0.00 100%

Loan 4241-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2022 11 Nov 2022 21 Dec 2022 31 Mar 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 25.00 23 Dec 2022 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Dec 2022 25.00 0.00 100%

TA 6984-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2022 02 Dec 2022 02 Dec 2022 30 Sep 2025 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 23 Dec 2022 0.00

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Tenders

Tender Title Type Status Posting Date Deadline
TA KGZ: Supporting the Building Resilience with Active Countercyclical Expenditures Program – Program Management Team Firm - Consulting Closed 18 Oct 2022 08 Nov 2022

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.