World Bank commits $35 million to enhance agri-food clusters in developing countries
The World Bank’s International Development Association (IDA) has recently approved a loan and grant for Kyrgyzstan to develop agri-food clusters in the Chui, Jalal-Abad, and Naryn regions. The agreement was approved by the Parliament’s Committee on Agrarian Policy, Water Resources, Ecology, and Regional Development in the first reading.
The IDA will provide $35 million, with $5 million as a grant and $30 million as an interest-free loan for 12 years, including a six-year grace period. These funds will be used to support the dairy cluster in the Chui and Jalal-Abad regions by constructing and equipping milk collection points. Additionally, the horticultural cluster in Jalal-Abad and Naryn regions will receive support. The funds will also be used to provide preferential loans at 8 percent per annum for cluster participants.
Furthermore, the plan includes improving the seed production system and breeding farms nationwide. This will involve providing equipment to seed farms, developing infrastructure, enhancing animal breeding policies, creating a national meat and dairy plan, and supporting individual breeding farms.
This initiative is aimed at boosting the agricultural sector in Kyrgyzstan and promoting economic development in the country. With the support of the World Bank, these agri-food clusters are expected to enhance productivity, increase income for farmers, and contribute to the overall growth of the agriculture industry in the region.
