Promotion of Sustainable Economic Development in Kyrgyzstan

The objective is: Jobs creation and increased income increased through the promotion of sustainable economic development, with consideration of elements of green economy.

The objective is to be achieved through the interaction of four fields of activity:

Value chains –aims to raise the efficiency of selected value chains and export sectors, forms part of the National Export Strategy and will support its implementation. Field of activity

Local economic development - is concerned with establishing the tried and tested strategies and schemes for local economic development more firmly in the key regions Osh, Naryn, and Jalal-Abad. The task of field of activity

Access to financial services - is to introduce financial services for micro, small and medium-sized enterprises (MSMEs) and agricultural producers involved in value chain, export and local economic development and to implement the Financial Literacy Strategy

Policy reform - aims to establish strategies, policies and instruments drawn up in dialogue for economically, environmentally and socially sustainable growth and will support their implementation with capacity development. The explicit emphasis on environmental sustainability in the sense of green growth and green economy will mainstream this priority theme in all fields of activity.

Main fields of intervention

During the first phase of implementation (2016 – 2019), the Project’s strategy towards achieving these outcomes is to cover three main areas of interventions: a) business-enabling environment; b) support to Jalal-Abad Oblast’s private sector and c) capacity development of the public sector at the oblast, rayon and community level to manage local economic development (LED) and provide good quality services to the private sector. Building capacities of the public sector is a major part of the approach to creating the business friendly environment.

Technical assistance will be provided to 1) MSMEs of different sectors operating in Jalal-Abad Oblast; 2) existing service providers, such as financial institutions, business advisory service firms, and business associations etc.; 3) individuals from Jalal-Abad Oblast who would like to start a business; 4) municipalities that promote entrepreneurship and private sector development. The Programme will strive to create interdependencies and interest-based needs of the stakeholders from all levels to work together, in order to create a common strategic and policy framework at the national level for business-enabling environment and systemic competitiveness, based on bottom-up testing and feedback.

Subject of the tender      

1. Establishment of LED units within 15-20 selected municipalities
2. Establishment of local training and mentorship mechanisms for LED
3. Capacity building/development of local self-governments (municipalities) to provide support to the private sector and manage local economic development.

This includes development of human and institutional capacity for LED through:

• Developing and implementing capacity building programme for municipalities;
• Training through workshop for LED units under municipalities. With institutionalized LED structures within the local administration, they will be able to prepare LED strategies and action plans in a participatory way;
• Train municipalities how to work within an “LED Portal” which will be designed to improve access to information, transparency, and accountability.