Kyrgyzstan has approved a draft financing agreement for the second phase of its National Irrigation Investment Programme, with funding from international development institutions and Switzerland supporting the modernisation of irrigation and drainage infrastructure.

The programme aims to improve access to irrigation services and increase their efficiency and productivity for agricultural users.

The second phase includes a loan from the International Development Association equivalent to 69.8 million Special Drawing Rights. Additional financing is planned from the Asian Infrastructure Investment Bank, with approximately $50 million, the OPEC Fund, with $20 million, and the Swiss Agency for Development and Cooperation, with $6.25 million.

The planned investments cover the reconstruction and modernisation of irrigation and drainage systems, upgrades to water-control structures and reservoirs, the development of groundwater sources, and measures to improve dam safety. The programme also includes automation of water distribution, water-use accounting and monitoring systems.

A pilot project will focus on irrigated farming and improved on-farm water management. It will include matching grants for agricultural start-ups operating in irrigation areas.

Other activities will involve upgrading hydroclimatic and hydrological equipment, developing digital systems for water-use permits, training specialists and supporting district water management departments.

Kyrgyzstan's Cabinet of Ministers approved the draft financing agreement under Order No. 782-r dated 14 October 2026. The IDA loan carries an annual interest rate of 1.5%, with repayment scheduled from November 2031 to May 2051.

Source - https://www.freshplaza.com