The International Development Association (World Bank) will provide Kyrgyzstan with a loan and a grant for the development of agri-food clusters in Chui, Jalal-Abad and Naryn regions. The agreement between the IDA and Kyrgyzstan was approved by the Committee on Agrarian Policy, Water Resources, Ecology and Regional Development of the Parliament of Kyrgyzstan in the first reading.
As the background statement to the bill says, IDA will allocate $35 million. $5 million is a grant, $30 million — interest-free loan for 12 years with a six-year grace period.
According to Deputy Minister of Water Resources, Agriculture and Processing Industry, Kubat Kaseyinov, the funds will be used to support the dairy cluster in Chui and Jalal-Abad regions. Namely, milk collection points will be built and equipped. A horticultural cluster will be supported in Jalal-Abad and Naryn regions. These funds will also be used to provide preferential loans at 8 percent per annum for participants of these clusters.
In addition, it is planned to improve the seed production system and breeding farms throughout the country. It includes providing equipment to seed farms, development of infrastructure, improvement of animal breeding policies and regulations, development of a national meat and dairy plan, and support for individual breeding farms.
