The event was organized in the framework of the Public Service Improvement Project financed by the Government of Switzerland through the Swiss Agency for Development and Cooperation (SDC) and implemented by a consortium of organizations composed of Helvetas Swiss Intercooperation and the Development Policy Institute.

The Service Improvement Action Plan aims to identify in a participatory manner priority public and municipal services as well as to plan and improve the organization and provision of these services. The Service Improvement Action Plan of the Ak-Chiy Aiyl Aimak focused on the repair and rehabilitation of water infrastructure and also on the organization and sustainability of the service provided to more than 1000 people.

During public hearings broadly attended by the population, a new tariff for drinking water was discussed and thereafter approved by the local council. The municipality also introduced new mechanisms for effective management of drinking water services, such as municipal-private sector partnership and allocation of subsidies for vulnerable groups of the population who cannot afford paying for the service.

“The service of drinking water supply in Ak-Chiy municipality was looked at in a systemic manner, from the rehabilitation of the water system, to the enhancement of the management capacities of the self-government, the establishment of a tariff system that would allow sustainable and affordable provision of quality services as well as the maintenance of the system, and the creation of a subsidy mechanism ensuring that all citizens will have access to water,” – said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic.

"After having applied a methodology elaborated by the project, we calculated the most optimal tariff for all. Despite the fact that after the calculation, the tariff has doubled, the population reacted to this with understanding, because everyone knew that earlier the tariff was adopted without justifications and calculations," - said Elmira Sultanbayeva, Chairwoman of the Ayil Kenesh.

In total, the Swiss financed Public Service Improvement Project supports the implementation of 36 Service Improvement Action Plans of rural municipalities for a total of 92 million soms, including 30% contributions from the municipalities. The priority services that will be supported by the project are sustainable access to safe drinking water, rehabilitation and accessibility of preschools and schools, improvement of communal and housing services in municipalities, etc.

The project implemented by IFC in close collaboration with State agencies and the Ministry of Economy has helped the Kyrgyz government to introduce risk-based inspection system that has reduced the inspections burden: compliance costs for the private sector have been reduced by an estimated $5 million over the past few years. IFC support to investment policy reforms has generated an estimated $14 million additional investment to the economy. The tax system reforms, which was another component of the project has enabled businesses to save $ 2.2 million in 2016 only.

The Program has also ensures the development of relevant legislation as regards food safety, and initiated a number of important reforms to help local food producers to access new markets.  

“The government of the Kyrgyz Republic has been working on improving the business climate and we have positive results. With inspection numbers significantly reduced, the risk level assessments and planning of inspections are now fully automated,” said Daniyar Imanaliev, Deputy Minister of Economy of the Kyrgyz Republic. “However, making the country a better place for businesses is a long-term, continuous process. We thank IFC for its long-standing support and hope to work together on the next reforms.”

“Switzerland, through the State Secretariat for Economic Affairs (SECO), has been supporting since 2008 initiatives that aim to create a favourable business environment. This was done by supporting reforms in the field of tax administration and business regulation. A necessary condition for successful reform process is the involvement of the private sector in the project design and monitoring,” said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic.

“An attractive investment climate is a prerequisite for an economy that wants to grow and create jobs”, said Martin Naegele, IFC Country Officer. “IFC, together with the World Bank, has been helping the Kyrgyz government resolve legal and policy weaknesses, to improve the operating environment for business and unlock the country’s potential to attract new investment.”

The Swiss Government and WBG/IFC will continue supporting the Kyrgyz Republic to create more favorable business environment, attract and retain foreign direct investment, and unlock new markets for the local businesses. 

About the World Bank Group

The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. 

About Swiss assistance

The Government of Switzerland provides assistance for the development of the Kyrgyz Republic. The overall objective of its cooperation program is to promote peace and social cohesion as well as responsive and inclusive institutions and a sustainable development to improve the well-being of the population. Over the last 25 years Switzerland has granted more than CHF 360 million to Kyrgyzstan to support the transition process. For more information, please visit https://www.eda.admin.ch/bishkek. 

To learn more about the UK’s Department for International Development, please visit:  https://www.gov.uk/government/organisations/department-for-international-development.