Kyrgyzstan has ratified a set of agreements with the European Bank for Reconstruction and Development (EBRD) and the European Union to support a major water infrastructure project in the Chui (Chüy) region, aimed at improving the efficiency of irrigation and water resource use.
President Sadyr Japarov signed the law on ratification of the agreements, which include a loan agreement with the EBRD, a grant from the European Union, and additional funding from the EBRD’s Special Shareholder Fund. The agreements were initially signed in Bishkek on March 17, 2025, and approved by the Zhogorku Kenesh (Parliament) on June 26, 2025.
The project, titled “Improving the Efficiency of Water Resources Use in the Chui Region,” focuses on the modernization and reconstruction of the irrigation infrastructure of the Western Great Chui Canal (WGCC) in Chui region.
Under the financing package, the EBRD will provide a €15.23mn loan, the European Union will contribute a €5mn grant, and the EBRD’s Special Shareholder Fund will allocate an additional €3.6mn. From the total loan, a one-time commission fee of €152,300 will be withheld by the EBRD, resulting in €15.08mn available for project implementation.
The loan is structured over a 20-year period, with a four-year grace period and a floating interest rate.
The combined €23.83mn in funding will support construction works to modernize approximately 12.5 kilometers of the WGCC, which plays a critical role in agricultural water supply in the region. Once completed, the rehabilitated canal is expected to enhance water delivery to around 7,000 hectares of farmland, helping boost agricultural productivity and resilience to climate change.
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