Dairy sector.

The Order of the Government of the Kyrgyz Republic No. 148-p was issued on May 23, 2019, that identified OJSC “Guarantee Fund” as one of the participants in the implementation of the International Development Association (the World Bank) project Integrated Dairy Productivity Improvement. The agreement between the Kyrgyz Republic and the IDA was signed on August 10, 2017. It was ratified by the Law of the Kyrgyz Republic of December 28, 2017, No. 220 (25) and entered into the force on April 10, 2018.

Guarantee Fund reached an agreement with the World Bank on the participation in this project implementation. Now the participation is officially supported by the government order. This demonstrates confidence in Guarantee Fund as a financial institution and recognition of its competence by international organizations and government agencies.

Today, the dairy sector enterprises believe that their main issue is the insufficiency of highly productive dairy breeds, low volumes and milk quality among farmers. They believe that a large-scale, comprehensive work is required in this regard with the involvement of the government agencies, dairy enterprises, farming and business communities.

Therefore, the goal of this project is to enhance dairy animal productivity and milk quality on beneficiary farms in the Issyk-Kul region. It comprises of four components. The first component, strengthening public and private services in the dairy sector will contribute to the program development objective by improving the public-private dialogue on private sector development issues, and by supporting the improvements in the breed stock (genetic quality) of the dairy cows. The second component, on-farm productivity enhancement will work towards the establishment of model dairy villages. The third component, farm-level investments objective is to promote investments in agribusiness, fostering backward and forward linkages in the dairy value chain and support supply chain infrastructure that create higher value. The fourth component, project management will cover the costs associated with project management, including monitoring and evaluation (M and E), and results assessment.

As part of the farm-level investments component, Guarantee Fund will conclude agreements with farmers – members of borrower groups, monitor compliance with the loan repayment schedule, work with problem borrowers and be responsible for the loan repayment.


The total amount of funding is USD 5 million (IDA), of which USD 2.25 million is a grant and USD 2.75 million is a loan. The project implementation period is from April 10, 2018 to December 31, 2020.

The project executive agencies are the Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic and the Ministry of Finance of the Kyrgyz Republic. The project implementing agencies are the Agribusiness Competitiveness Center, the Credit Line Management Department of the Ministry of Finance of the Kyrgyz Republic, and, as it was said, the OJSC “Guarantee Fund”.