Support the Implementation of ADB’s Green Financing to Enhance Energy Efficiency in Kyrgyzstan’s Public Buildings

To address Kyrgyzstan’s chronic energy shortages, aging infrastructure, and climate vulnerabilities, the Asian Development Bank (ADB) is expected to extend $25 million in loans and grants to support a green public building retrofitting initiative. The project will focus on energy-efficient renovations for public buildings (including kindergartens, schools, hospitals, and clinics), renewable energy adoption, energy audits, capacity building for energy efficiency professionals, an online public building management platform, and public awareness campaigns on energy conservation.

The JV partnered UrbanLogic Limited (UL) and NAREE International Limited (NAREE), appointed by ADB as the transaction technical assistance (TrTA) consulting team, is providing support for project preparation. From April 14 to 18, 2025, ADB conducted Loan Fact-Finding Mission in Bishkek, Kyrgyzstan.

The TrTA Project officially commenced in September 2024. Through field visits to public buildings—particularly schools and hospitals—in remote rural and mountainous areas, as well as extensive stakeholder consultations, UL and NAREE’s TA team identified critical challenges: over half of the local impoverished population lives in substandard conditions, while schools and hospitals suffer from poor insulation, outdated heating systems, and low energy efficiency. These issues contribute significantly to the country’s energy consumption and greenhouse gas emissions. In winter, inadequate power supply exacerbates heat loss, with indoor temperatures often falling below internationally recognized comfort levels.

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Although the Kyrgyz government has enacted a revised Energy Efficiency Law and set climate targets, policy implementation remains hindered by funding gaps, fragmented data, weak institutional capacity, and an underdeveloped energy-efficient technology market. In response, the government will launch the National Green Economy Plan 2025–2029, outlining a roadmap for building retrofits and green transition. The plan, with an estimated total investment of $1 billion, is expected to be financed by multilateral institutions and development partners, including the World Bank, ADB, the European Bank for Reconstruction and Development, and the Green Climate Fund (GCF).

The ADB project will adopt a results-based lending (RBL) approach, aligned with the government’s broader strategy, to enhance public building energy efficiency and climate resilience while strengthening institutional capacity and workforce training. The RBL modality also serves as a collaborative platform for government agencies, the GCF, and other partners to scale up climate investments.

Additionally, a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific will support critical activities such as energy audits, third-party verification, annual external audits, technical assistance, and capacity building to ensure sustainable project outcomes.

UL and NAREE’s TA team conducted due diligence and collaborated with ADB and the government to design the project’s results framework, payment-linked indicators verification protocol, loan allocation mechanism, and action plan. All project documents were finalized during the Loan Fact-Finding Mission.

Through this Project, UL and NAREE are offering not only technical support for Kyrgyzstan’s green transition but also valuable insights for similar initiatives across Asia-Pacific. We reaffirmed our commitment to advancing sustainable project design and implementation in the region.