In its first investment in Kyrgyz transport infrastructure, the Bank is providing a US$35 million sovereign loan to finance the renovation of the highway linking towns of Osh, Batken and Isfana.

Providing access to Uzbekistan, Tajikistan and China, the road has an important role as an international transit route in the region.

Due to complex international borders in the region and Tajik and Uzbek enclaves on the territory of the Kyrgyz Republic, the existing road crosses international borders several times. The project, supported by the EBRD, will re-route some segments of the Osh-Batken-Isfana highway so that the road lies wholly within the territory of the Kyrgyz Republic.

The rehabilitation of the road, which passes through highly productive agrarian districts, will promote economic development in the region by providing improved and reliable access to the main markets of the country.

With a total cost of over US$75 million, the project will be co-financed by the World Bank and the European Union, which will provide US$20 million and US$18 million respectively.

Included in the estimated project cost are grant funds worth up to US$2.3 million from the Bank’s technical cooperation facilities. This technical cooperation will assist the Kyrgyz government with its proposals to reform the management and financing of the road sector, as well as to undertake engineering supervision of the road construction works.

“The EBRD is pleased to support the Kyrgyz Republic in the implementation of this important project for the development of the country, which will improve economic ties in the region,” said Kenji Nakazawa, Head of the EBRD’s Resident Office in Bishkek. “The reconstruction of the Osh-Batken-Isfana highway is an important step towards modernisation of the transport infrastructure in the Kyrgyz Republic and this project will also encourage further reforms in this strategic sector”, added Mr. Nakazawa.

“The construction of the Osh-Batken-Isfana highway project is very important and timely. The project will improve access to the south-west of the country. In addition, the project will help the Republic to achieve its transport independence in accordance with its Road Sector Development Strategy, by resolving the issues related to the crossing of Tajik and Uzbek enclaves," said Minister of Finance of the Kyrgyz Republic, Marat Sultanov.

Since the beginning of its operations in the Kyrgyz Republic, the EBRD has invested over €140 million in over 50 projects in the infrastructure, corporate, energy and financial sectors. The EBRD funds attracted additional investments worth US$97.5 million.