OREANDA-NEWS. On July 01, 2008 the World Bank’s Board of Directors has approved a new project for the Kyrgyz Republic to build capacity for economic management in the civil service, reported the press-centre of World Bank. 

The US\\$3 million grant was allocated for the Capacity Building for Economic Management Project, which will establish and institutionalize a sound framework and capacity for economic policy making and implementation in Kyrgyzstan.

The project will provide direct institutional and capacity building support to the Presidential Administration, Government Office, the Ministry of Finance, the Ministry for Economic Development and Trade, and the National Bank of the Kyrgyz Republic.  These agencies will closely coordinate to develop clear procedures, roles and responsibilities for establishing broad parameters of economic policy, and screening significant policy proposals for their consistency with such a framework, particularly taking into account their impacts on the fiscal stance and the business environment.

The project will also support training and capacity building to above-mentioned civil service institutions, as well as reforms to the system of civil service remuneration in order to gradually attract and retain more well qualified professionals to the civil service. The Capacity Building for Economic Management Project will be implemented over four years.

The World Bank is one of the largest sources of development assistance to the Kyrgyz Republic.  The Kyrgyz Republic borrows from the World Bank on highly concessional terms – no interest, and only a 0.75 percent service charge.  Credits are repayable in 40 years, including a 10-year grace period, while grants require no repayment.  From 2003 to mid-2005, half of the World Bank’s assistance to the Kyrgyz Republic was in grant form. Since July 2005, the Bank has provided all funding to the Kyrgyz Republic on a grant basis.