Identifier
Created
Classification
Origin
09BISHKEK931
2009-08-21 05:22:00
CONFIDENTIAL
Embassy Bishkek
Cable title:  

AMBASSADOR MEETS WITH US AMBASSADOR TO THE ASIAN

Tags:  ADB AID PGOV PINR PREL ECON EFIN KG 
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ZNY CCCCC ZZH
R 210522Z AUG 09
FM AMEMBASSY BISHKEK
TO RUEHC/SECSTATE WASHDC 2588
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUEHML/AMEMBASSY MANILA 0091
RHEFDIA/DIA WASHDC
RUEKJCS/OSD WASHDC
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEHGV/USMISSION GENEVA 1518
RUEHVEN/USMISSION USOSCE 3571
RUCNDT/USMISSION USUN NEW YORK 2957
RUEHNO/USMISSION USNATO BRUSSELS BE
RUEHBS/USEU BRUSSELS
RUEHLMC/MILLENNIUM CHALLENGE CORP
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
C O N F I D E N T I A L SECTION 01 OF 02 BISHKEK 000931 

SIPDIS

DEPT FOR SCA/CEN (GORKOWSKI)

E.O. 12958: DECL: 08/18/2019
TAGS: ADB AID PGOV PINR PREL ECON EFIN KG
SUBJECT: AMBASSADOR MEETS WITH US AMBASSADOR TO THE ASIAN
DEVELOPMENT BANK

BISHKEK 00000931 001.2 OF 002


Classified By: Amb. Tatiana Gfoeller, Reason 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 BISHKEK 000931

SIPDIS

DEPT FOR SCA/CEN (GORKOWSKI)

E.O. 12958: DECL: 08/18/2019
TAGS: ADB AID PGOV PINR PREL ECON EFIN KG
SUBJECT: AMBASSADOR MEETS WITH US AMBASSADOR TO THE ASIAN
DEVELOPMENT BANK

BISHKEK 00000931 001.2 OF 002


Classified By: Amb. Tatiana Gfoeller, Reason 1.4 (b) and (d).


1. (C) SUMMARY: The Ambassador received U.S. Ambassador to
the Asian Development Bank (ADB),Curtis Chin, on August 18
during his visit to the region. During their meeting
Ambassador Chin described the ADB's relatively robust
activity in Kyrgyzstan, primarily focused on infrastructure
development and especially road improvement. He also
discussed the ADB's decision to not participate in financing
of the Central Asia South Asia Electricity and Trade project
(CASA),and he noted taht the ADB is scheduled to invest in
energy efficiency and improving the business environment, two
areas where USAID is already working with the Government of
Kyrgyzstan (GOKG). END SUMMARY.


2. (SBU) Ambassador Chin briefed the Ambassador on the Asian
Development Bank's (ADB) proposed $175 million investment
program for the 2010-2011 period. He noted that the ADB's
past financing in Kyrgyzstan has focused primarily on
infrastructure projects, in particular road construction and
improvement. Ambassador Chin said that the ADB also has had
limited investment in water system improvements in
Kyrgyzstan, but has moved cautiously in this area following
ADB's negative experience with an earlier water project
marred by corruption. ADB is investing USD 30 million in
2009 in the water system in the Issyk-Kul Lake region. This
region has the potential for increased tourism and this
investment will help improve the sustainability of the area's
water system. He said ADB's road investment in Kyrgyzstan
has numerous sub-projects, but the main ongoing road
investment is in the Bishkek-Torugart corridor connecting
Kyrgyzstan and China, in which ADB is projected to invest USD
80 million in 2010-2011.


3. (C) In response to a question from the Ambassador
regarding the ADB's participation in the Central Asia South
Asia Electricity and Trade Project (CASA),Ambassador Chin
said that the ADB had decided to pull out of participation in
the project after the governments in the region indicated
that they would rather use the available financing for what
they considered higher priority projects. Ambassador Chin
noted that the ADB would be participating in the improvement
of the Afghanistan-Uzbekistan transportation corridor (part
of the Northern Distribution Network). Ambassador Chin said
that given the critical need for this transportation network,
the ADB would participate even though the Uzbek government
was demanding a single bidder for the project, a Russian
company, which the ADB would normally not agree to.

4. (SBU) Ambassador Chin also described the ADB's intention
to finance a project in Kyrgyzstan that will increase energy
monitoring and efficiency, and another project that will
improve the business environment. The U.S. is working
closely with the GOKG on necessary reforms to the energy
sector -- including legal, technical and financial advice on
CASA, as well as developing a more strategic approach to
address long-standing issues of deteriorating infrastructure,
low cash payments, high losses and lack of resource
management. Ambassador Chin confirmed that the ADB has
included USD 15 million for the energy monitoring and
efficiency project in its planned funding for 2010.
Ambassador Chin also said that the ADB is slated to provide
USD 40 million for investment climate improvement in
2010-2011.


5. (SBU) COMMENT: It was useful to hear directly from
Ambassador Chin on the ADB's work in Kyrgyzstan and the
region. The ADB has provided significant financing for
infrastructure projects in Kyrgyzstan and the road projects
have improved the country's links to its neighbors. It is
good news that ADB will be supporting energy efficiency in
Kyrgyzstan, an area of critical need. There are already
several international organizations, including USAID, working
to improve Kyrgyszstan's business environment and the Embassy

BISHKEK 00000931 002.2 OF 002


will work with other donors to avoid overlap.
GFOELLER