The World Bank's Board of Executive Directors has greenlit an additional $7mn in financing for the ongoing Digital Central Asia South Asia (Digital CASA) project in the Kyrgyz Republic, the World Bank reported. This supplementary funding comes as an enhancement to the initial $50mn allocated to the Digital CASA – Kyrgyz Republic Project back in March 2018.

The primary objective of the Digital CASA project is to propel the Kyrgyz Republic into the digital age by improving internet accessibility, attracting private investment in the information and communication technology (ICT) sector, and streamlining the delivery of digital government services.

Naveed Hassan Naqvi, the World Bank Country Manager for the Kyrgyz Republic, emphasized the project's alignment with the country’s digital transformation agenda and the National Sustainable Development Strategy 2018-2040. The initiative aims to foster sustainable and inclusive growth by narrowing the digital divide, especially in rural areas. Additionally, it seeks to enhance the efficiency and transparency of public administration through the upgrade of digital government services.

The total investment of $57mn, combining the Digital CASA – Kyrgyz Republic Project and its Additional Financing Project, is anticipated to provide better and more affordable internet services to over 800,000 citizens, raising the Internet penetration rate in the country to 57%. The project focuses on three key activities: laying 2,500 kilometers of fiber-optic network across the country, establishing two cross-border fiber-optic links, and building a government cloud (G-Cloud) infrastructure.

The Digital CASA – Kyrgyz Republic project holds the promise of integrating the Kyrgyz Republic and other landlocked countries in Central Asia and parts of South Asia into the regional and global digital economy, unlocking the benefits of digitalization for these nations.

Sandra Sargent, World Bank Senior Digital Development Specialist and Project Task Team Leader, stressed the critical role of the additional financing in addressing the funding gap, particularly for expanding the capacity of data storage and processing on the G-Cloud. The G-Cloud, a government cloud platform, plays a vital role in the digital public infrastructure, offering storage, processing power, and computing capacity to support e-government services and handle large volumes of data.

The Additional Financing for the Digital CASA – Kyrgyz Republic Project is facilitated through the International Development Association (IDA), the concessional lending arm of the World Bank. The funds are provided in the form of a zero-interest credit, with repayments spread over 50 years and a 10-year grace period. The Ministry of Digital Development will oversee the project’s implementation until April 2025, adhering to strict international standards, including procurement and financial management regulations, and anti-corruption guidelines.

The World Bank's overarching mission to eradicate extreme poverty and promote shared prosperity on a sustainable planet is furthered by the 23 projects currently supporting the modernization and development of various sectors in the Kyrgyz Republic, with a total commitment of $1.1bn.

World Bank and Kyrgyzstan Set to Launch New Five-Year CPF

In related developments, the World Bank is reportedly gearing up to initiate a fresh five-year Country Partnership Framework (CPF) with the Kyrgyz Republic spanning from 2024 to 2028. This CPF, grounded in the 2023 Update of the Systematic Country Diagnostic and other essential diagnostics, is the result of consultations with diverse stakeholders across the country.

While maintaining continuity with the prior program (2019-23), the new CPF introduces notable shifts in both focus and approach. The World Bank's financing will primarily target energy, water, and agriculture as priority sectors, placing a strong emphasis on facilitating private sector investments. The approach is evolving towards the development of scalable projects and the utilization of innovative financing instruments.

Furthermore, the CPF places significant attention on addressing key global challenges, encompassing the reinforcement of climate resilience and emissions reduction, bridging gender disparities, supporting job creation and economic transformation, strengthening institutions, and mitigating fragility risks. A well-structured program of activities is already in place to support these objectives.

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