Energy Sector Development Policy Operation

The Energy Sector Development Policy Operation for Kyrgyz is requesting financing to improve the financial viability of the energy sector, enhance its governance and accountability while managing the impact of power shortages on poor regions. Accordingly, the proposed operation supports government efforts in the following three areas: 1. Improving financial viability of the sector; 2. Enhancing sector governance, transparency and accountability; and 3. Managing the impact of power shortages on poor regions. The program is at the core of the national Power Sector Development Strategy 2012-2017 and is fully aligned with the objectives of the Country Partnership Strategy for 2013-2017 and the World Bank’s objective to reduce poverty and promote shared prosperity. The proposed operation incorporates the following key lessons: (i) support complex and politically difficult reforms through a dedicated sector DPO; (ii) concentrate on few policy areas that are fundamental for addressing sector key challenges and have full ownership of the Government; and (iii) complement the DPO with other instruments for Bank support, including investment project financing, technical assistance and economic and sector work.