📋 Tender Overview
STATUS
Approved
MEMBER
Kyrgyzstan
SECTOR
CRF-Finance/Liquidity
E&S CATEGORY
BE
PROJECT NUMBER
000423
FINANCING
APPROVED FUNDING
USD50 million
FINANCING TYPE
Sovereign
TIMELINE
FINANCING APPROVAL
August 13, 2020
LATEST FIELD VISIT
November 2023
OBJECTIVE
To support Micro, Small and Medium Enterprises (MSMEs) in response to and during the recovery from the COVID-19 crisis.
DESCRIPTION
The proposed Kyrgyz Emergency Support for Private and Financial Sector Project aims to alleviate SMEs’ working capital shortages and liquidity constraints in response to the COVID-19 crisis and to strengthen the financial sector infrastructure to accelerate the recovery from the pandemic.
The project will be jointly co-financed with the World Bank (WB), as the lead co-financier, and will be comprised of:
Component 1: Reimbursable Financial Assistance (RFA) to Micro, Small and Medium Enterprises (MSMEs) via financial institutions selected to serve as disbursement administrators.
Sub-component 1.1: RFA for micro entrepreneurs (fully financed by WB) will provide RFA to eligible micro entrepreneurs.
Sub-component 1.2: RFA for SMEs (co-financed by WB and AIIB) will provide financial assistance to eligible SMEs that keep accounting records, pay taxes, and hire employees. Funds will be used to cover a predetermined set of eligible operating expenses of the SMEs, including, inter alia, payroll, suppliers, rent, and utilities.
Component 2: Partial Portfolio Risk Sharing Facility (PRSF), offering a fee-based partial credit guarantee to share part of the credit risk in MSME credits from eligible Participating Financial Intermediaries (PFIs). The facility will offer guarantees on a portfolio basis, and all eligible MSME credits from the PFIs will be included automatically in the facility.
Sub-component 2.1: Financing for the PRSF (co-financed by WB and AIIB). The PRSF will be financed under three windows: (i) short-term loans and overdrafts to MSMEs; (ii) restructured MSME credits that were in good standing prior to the COVID-19 crisis; and (iii) new MSME long-term loans.
Sub-component 2.2: Capacity Building (fully financed by WB). This sub-component will provide capacity building to the Guarantee Fund, the PFIs and other stakeholders to operationalize the PRSF.
Component 3: Project Implementation, Coordination and Management.
AIIB will co-finance with the WB sub-components1.2 and 2.1, and component 3.
This project will be processed under the AIIB’s COVID-19 Crisis Recovery Facility (CRF), a framework designed to assist members in responding to the COVID-19 pandemic.
ENVIRONMENTAL AND SOCIAL INFORMATION
The project will be co-financed with the WB, and its environmental and social (ES) risks and impacts have been assessed in accordance with the WB’s Environment and Social Framework (ESF). To ensure a harmonized approach to addressing the ES risks and impacts of the project, and as permitted under AIIB’s Environmental and Soci
