Working with international agencies, the Kyrgyz Republic introduced a powerful PPP law in 2012 concerning the international best practice. The first project in the pipeline has recently reached the tender stage, and the new regulatory framework will be tested in the coming years.

The Investment Promotion Agency was set up in 2014 under the Ministry of Economy as the main agency, while a Risk Management Unit is a part of the Ministry of Finance. However, relevant skills are insufficient and the present project development is highly depended on support from international agencies. PPP identification is down to individual procuring agencies at central or local government level. To strengthen project preparation, the government established the Project Development Support Facility (PDSF) in 2014.The PDSF helps authorities with the cost of engaging outside consultants at the same time provides an additional layer of screening for potential PPPs.

International development agencies provide financial support to PPPs. Local sources of private infrastructure finance are negligible, and the country’s weak economic fundamentals mean that the government is unable to issue long term bonds to fund infrastructure.

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