The “Value Chain Agro-Finance” project is co-funded by the European Union (EU), the European Investment Bank (EIB) and the German Development Bank (KfW). The Project budget amounts to EUR 37 million and consist of the following components:
KfW grant resources amounting EUR 10 million
EIB loan of EUR 22 million
Resources provided from the Investment Fund for Central Asia (currently known as APIF – Asia Pacific Investment Facility), funded by the EU, amounting to EUR 5 million, to support the agro-finance sector and allow farmers and agribusinesses to update equipment and apply modern technologies in their work.
The KfW and EIB resources will be used for lending to micro, small and medium enterprises (MSMEs)– actors within the agricultural value chains – via selected local commercial banks for investment purposes and working capital needs. The eligible beneficiaries for receiving loans from the project resources via banks are farmers, agro-processing enterprises, providers of services to the agriculture sector, suppliers of agricultural inputs, and distributors integrated in the agricultural value chains.
The grant resources provided by the EU via APIF will be used for:
Providing support to farmers on implementing best agricultural practices, including increased resource efficiency and environmental issues in primary production.
Support to agri-processors on implementation of international certification systems leading to improvements in environmental and sanitary standards and practices.
Strengthening food testing laboratories capacity by know-how transferring, financing and delivery to laboratories required equipment from the investment grant component.
Ministries
The Ministry of Finance of the Kyrgyz Republic is responsible for the implementation of the project by channeling the funds to the participating partner financial institutions (PFIs) to be provided as loans to the MSMEs.
The EIB and KfW funds for lending through PFIs equal EUR 31 million and will be provided in local currency to MSMEs involved in selected agricultural value chains for investment purposes, with maturities of three years or more, and for working capital replenishment.
The Ministry of Water Resources, Agriculture and Processing Industry of the Kyrgyz Republic is an important partner of the project for maintaining and implementing agricultural value chains/ clusters in the Kyrgyz Republic. The aim of the Ministry is to ensure food security, development of agricultural production and processing industry of the Kyrgyz Republic, development of competitiveness of agricultural production, food industry, as well as the development of value chains on the basis of cluster production. The Project’s strategic co-operation with the Ministry will ensure effective project implementation for value chain development.
The public foundation “Training and Consultation Centre” (TES-Centre) is a Kyrgyz non-governmental organization (NGO) that aims to increase the incomes of the population employed in the agricultural sector through qualitative training and consulting. TES-Centre was established in 1999 by a German Technical Cooperation project, jointly with Osh State University. Its mission is to increase farmers' incomes by developing cooperation and offering innovative integrated solutions.
TES is involved in the Value Chain Agro-Finance project with the implementation of sugar beet, peppers, onions, potato seed and zero till schemes.
Founded in 1999, the Rural Advisory Service of Jalalabad Oblast (RAS JA), a public foundation, is an extension service that offers technical assistance to rural communities in agricultural and business development in Kyrgyzstan. RAS JA’s mission is to contribute to poverty alleviation and improve the living standards of the rural population in Kyrgyzstan through the provision of quality agricultural advisory services. It is involved in the project with the implementation of potato seed and zero-till schemes.
The AgroLead group of companies unites the public associations AgroLead, AgroLead Plus cooperative and FairMatch Support Central Asia. Each organization conducts the following activities:
· Training and consulting
· Supply of seeds and sale of products for the cooperative
· Building of global value chains
Together, their activities represent the full cycle of accompanying farmers. AgroLead offers comprehensive services to farmers, including training, seed supply, consultations on farming methods, and marketing strategies.
AgroLead is involved in the Value Chain Agro-Finance project with the implementation of potato seed and zero-till schemes
The national platform, linked to regional bodies CACFRAS and APIRAS, stands as a pivotal component within the expansive GFRAS network. Its primary objective lies in the consolidation of rural extension services across the Kyrgyz Republic, advocating for the needs and advancements of agricultural advisory services. This involves a concerted effort towards capacity building for forum members, fostering an environment ripe for innovation and progress.
Within the project, KGFRAS is responsible for organizational development of implemented schemes and establishing and implementing quality assurance system in potato seed production.
The association was formed on the initiative of farmers of the Kyrgyz Republic. The main tasks of the association are coordination of actions of its members and creation of a favorable technological, financial, personnel and legislative environment for the development of the industry.
Focus areas are: technological modernization, development of financial instruments, and export promotion.
The project will work on capacity building of association and strengthening of their extension component.
Testing laboratories
The Project activities to improve the food safety and quality infrastructure through financing investments to Government owned agri-food testing laboratories cover the Center for Veterinary Diagnostics and Expertise in Bishkek and Osh, Department of Disease Prevention and State Sanitary and Epidemiological Control, and Bishkek Center for Testing, Certification and Metrology.
Assessment of Government owned agri-food testing laboratories equipment and rehabilitation needs has been carried out in close cooperation with the management of the selected food testing laboratories. Furthermore, the equipment (including reference materials and reference data) and rehabilitation needs are subject to formalization by the project stakeholders; the tendering and procurement process will follow international standards and follows the procedures and requirements of the project stakeholders.
The financing investment and know-how transfer activities shall introduce 43 testing methods in Government owned agri-food testing laboratories. The breakdown of testing methods by laboratories is presented as follows:
Laboratory
Number of testing methods
Center for Veterinary Diagnostics and Expertise in Bishkek and Osh
23
Department of Disease Prevention and State Sanitary and Epidemiological Control
6
Bishkek Center for Testing, Certification and Metrology
