With the additional financing, the total allocation for the Second Village Investment Project makes US$23 million. The project sustains and expands the achievements realized under the first Village Investment Project, by expanding coverage to all 475 aiyl okmotus in the country.

“The World Bank is glad to continue support for this project,” said World Bank Country Manager Roger J. Robinson. “Several newborn kids in the Kyrgyz Republic have been given their names Aris after the ARIS - the local acronym for the Community Development and Investment Agency. This is a great sign that the project is very close to the people and truly contributes to improving people’s lives in this country.”

The VIP-2 applies a bottom-up approach to prioritization, planning and implementation, and direct assistance to rural communities, and relies heavily on the empowerment of grassroots institutions. The Project draws upon the capacity created, the experience gained, and lessons learned under the first VIP. Examples of projects implemented under the first VIP include rehabilitation of rural schools, rural healthcare facilities, roads, electric substations, and opening rural information-resource centers, among others.

The Second Village Investment Project supports the development of capacity at the community level to plan, prioritize, and implement local investments and to manage financial resources efficiently and transparently. The Project provides grants to communities to implement their agreed and approved community investment plans, and all rural communities in Kyrgyz Republic are eligible to participate. Through a participatory and fully transparent process, villagers assess and identify local problems, establish their own priorities for the grant scheme, and identify and prepare micro-projects that address their needs. The participatory process has helped to strengthen the voice of women and the poor, and female participation is high in community leadership roles, in the local and village investment committees, and as leaders of microproject groups. The Project is implemented by the Community Development and Investment Agency (ARIS), in close cooperation with the local communities.

Community members contribute at least 25% to the investment costs in cash and/or kind, and they are also fully responsible for the subsequent operation and maintenance of the facilities through the committees and groups established under VIP or in partnership with the local governments. Investments are implemented as much as possible by the local beneficiaries themselves and/or by local contractors in order to support the development of local small-scale enterprise.

The World Bank’s overall mission in Kyrgyzstan is to promote economic growth, reduce poverty, and encourage a better quality of life. The financial assistance committed to the Kyrgyz Republic so far amounts to over US$857 million, in the form of grants and highly concessional credits.