A shortage of skilled labor, caused by the disparity between graduates’ skills and labor market needs, was constraining the economic growth of the Kyrgyz Republic at project appraisal. To help reduce this disparity, the Asian Development Bank (ADB) approved a loan of $10 million and a grant of $10 million for the Second Vocational Education and Skills Development Project in September 2012.
The Kyrgyz Republic, because of abundant hydropower resources, was the largest net power exporter in the Central Asian Power System during the 1990s and 2000s. However, load shedding was common during years when the river water levels and discharges were low due to hydrologic fluctuations.
Since the collapse of the Soviet Union, the Kyrgyz Republic has made significant progress in adopting market-based reforms, with private sector development as the key engine of growth. Nevertheless, growth has occurred largely from natural resource exploitation and remittances-backed private consumption.
Lake Issyk–Kul in the eastern part of the Kyrgyz Republic is the world’s second largest saline lake; a Ramsar site of globally significant biodiversity; and a United Nations Educational, Scientific and Cultural Organization designated biosphere reserve. In September 2009, the Asian Development Bank (ADB) approved a $16.5 million loan and a $13.5 million grant for the Issyk-Kul Sustainable Deve
Transport corridor 3 of the Central Asia Regional Economic Cooperation (CAREC) program runs from the People’s Republic of China (PRC) through Irkeshtam at the PRC–Kyrgyz Republic border and Karamyk at the Kyrgyz Republic–Tajikistan border toward several Central Asian countries, including Afghanistan and Pakistan to the south and Uzbekistan to the west.