The Kyrgyz Republic's energy sector faces many financial and operational challenges that are expected to increase in severity in future years. DHI wrote a policy note in 2013, evaluating the most important challenges to the sector, and recommending how best to address those challenges. The World Bank wanted an update of this policy note, to reflect the progress that had been made in the sector, particularly in relation to how actual electricity and heating tariffs compared to government's Medium Term Tariff Policy (2014).
DHInfrastructure identified recent reforms and policy developments in the energy sector, analyzed the sector's progress in meeting key challenges described in the previous policy note, and identified continuing financial, technical, and policy challenges. We recommended solutions to those challenges, with a focus on achieving cost-recovery tariffs.