The Russian-Kyrgyz Development Fund (RKDF) has announced plans to finance projects exceeding $140 mn in 2024. This decision, which includes funding for both new and ongoing projects, was revealed by the fund’s press service.
The budget for these projects was approved during a recent meeting of the RKDF Council. The fund will prioritize strategic sectors of the economy, including industry, infrastructure development in education and healthcare, logistics, agriculture and processing. The aim is to strengthen food security and energy independence.
The fund will also continue and expand its work in various regions. To facilitate this, the board of the fund has approved a provision for financing projects worth less than $1 mn.
Artem Novikov, Chairman of the Board of the RKDF, expressed optimism about the fund’s future. “The strategic decision to approve the budget will allow the fund to operate normally. The RKDF has the necessary resources, and we will continue to accept new applications. We hope that the number and quality of interesting, important and necessary projects for the country will grow, and the fund, by financing them, will continue to contribute to the development of the economy,” he said.
Daniyar Amangeldiyev, a member of the RKDF Council and Minister of Economy and Commerce, noted that the total project portfolio of the fund increased by 50% compared to the previous year. He highlighted that the available financial resources contribute to the implementation of projects in almost all sectors of the economy, including industry, agriculture, processing, engineering, tourism, and mining.
“With the growth of the economy, the need for financial resources also increases, and the budget of the fund clearly shows this. And that is not the limit,” Amangeldiyev added.
The meeting concluded with decisions to improve the efficiency and quality of the RKDF’s activities. This includes institutional transformations and enhancements to the internal management system.
The RKDF has been actively involved in providing long-term financial resources, with the fund’s capital being comparable to the capital of the entire banking system of the Kyrgyz Republic. The equity capital of the fund at the end of 2021 reached $541 mn.
Previously, the fund has financed projects in agriculture, product processing, light industry, textile industry, tourism, infrastructure, healthcare, and education. One of the significant projects includes the construction of the Kulanak hydroelectric power station with a capacity of 100 MW in the Naryn region. The RKDF provided $44 mn for its implementation, contributing to ensuring the Kyrgyz Republic's energy security and reducing the country's energy deficit by 18%.
The fund also plans to consider projects on food security, export support, and job creation in the regions shortly.
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