In April 2010, the Kyrgyz Republic experienced political disturbances resulting in several deaths and injuries, substantial property damage, and a change in government. Two months after, community violence erupted with even greater casualties, internal displacements, and physical losses. Providing affected people with shelter before the onset of winter, along with food security and livelihood restoration needs, created a heavy burden on government. Energy infrastructure remained vulnerable to breakdown due to disrepair. While water supply and sanitation (WSS) infrastructure were not damaged, the shortfall in fiscal transfers to maintain these mostly aged and dilapidated systems was expected to result in significant public health deterioration.
At government’s request, the Asian Development Bank (ADB) approved in September 2010 a loan of $48.5 million-equivalent and a grant of $51.5 million for the Emergency Assistance for Recovery and Reconstruction. The project was designed to help rebuild houses, improve essential public infrastructure, and restore the country’s fiscal capacity to meet the post-conflict rising costs of services. It had 4 components: (i) budget support to ensure uninterrupted delivery of education, health, social assistance, transport, and urban services; (ii) repair and/or reconstruction of damaged houses in the worst hit cities of Osh, Jalal-Abad, and Bazar-Korgon; (iii) improvement of community and public infrastructure; and (iv) consulting services.
Disbursements for education, health, social assistance, and local governments exceeded the allocations set at appraisal. Teachers’ salaries and other education-related public expenditures were thus maintained. By end-2010, expenditures for maternal and reproductive health were at their 2008 level and the number of social assistance beneficiaries, over 50% of whom were women, was not lower than in April 2010. Fiscal support for road maintenance was as planned.
A total of 1,629 houses were reconstructed or repaired through self-help. 32.6 kilometers (km) of water supply transmission mains were installed, against a 10-km target. 17 of the 20 planned water intake structures and treatment systems were built. Additional outputs, financed by unutilized allocations due to adjustments in the scope of component 3, were also delivered, including 2 embankments, 1 pipe bridge, and 1 electricity system in Osh; WSS rehabilitation in Bazar-Korgon; and the provision of 2 sets of WSS operation and maintenance equipment.
Overall, the project was implemented as designed and targets were substantially met, allowing the project to achieve its intended outcome of rebuilding critical infrastructure assets and maintaining essential public expenditures in the areas most affected by the conflict. Project completion was extended thrice to 30 June 2016 from 30 September 2013 envisaged at approval. Against an appraisal estimate of $110 million, actual project cost was $98.3 million.
ADB’s Central and West Asia Department rated the project successful. The Ministry of Finance was the executing agency. The State Directorate for Reconstruction and Development of Osh and Jalal-Abad and later, the State Agency for Architecture, Construction and Communal Services, served as implementing agencies. During the early recovery phase, the project also tapped 3 international nongovernment organizations ─ the Agency for Technical Cooperation and Development, the Danish Refugee Council, and Children ─ as implementing partners.