Kyrgyzstan to raise up to $500 million from AIIB for hydropower, roads and housing

Use of funds

According to an explanatory note from the Ministry of Finance, financing will be provided in the form of loans intended for state investment projects. An annex to the agreement identifies six priority areas for allocating the funds.

Key infrastructure projects

The largest share of the funds, 200 million dollars, is reserved for the construction of Kambarata-1 hydropower plant. Approval of financing for this project is expected in 2027–2028. The following areas are also planned:

• Green and affordable housing program: 65 million dollars (expected in 2027)
• Development of irrigation systems: 50 million dollars (expected to be raised in 2027)
• Reconstruction of the Osh — Manas highway: 50 million dollars
• Support for sustainable economic growth, energy and food security: 50 million dollars
• Construction of a children's hospital in Osh (funding amount not yet determined, approval expected in 2028)

The framework agreement with the Asian Infrastructure Investment Bank was signed on September 27, 2026 in Doha and covers the period 2026–2028.