1

USAID/Kyrgyzstan 

Operational Plan 

FY 2006 

June 13, 2006 
2

Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
3

Program Performance Summary FY 2005: DEMOCRATIC REFORM 

Country Situation: Flawed parliamentary elections in February and March provoked an uprising that 

ousted the Akayev government on March 24. A loose coalition of opposition figures quickly formed an 

interim government and decided to recognize the newly-elected parliament. Kurmanbek Bakiyev, the 

acting interim president, was elected president in July in elections deemed by the Organization for 

Security and Cooperation in Europe as marking significant progress towards meeting international 

standards. The election was the first constitutional transfer of power in Central Asia. The Bakiyev 

government launched initial steps to reform the constitution and state media, and to attack widespread 

corruption, but changes have not been as fast or effective as many may have hoped. While not reflecting 

the March events, Freedom House ratings remained the same in electoral process (6); national 

governance (6); civil society (4.5); and constitutional, legislative, and judicial framework (5.5). The score 

for independent media improved slightly from 6 to 5.75, and a new rating in local governance was 5.75. 

[Note: 7 is the worst score.] 

Civil society in Kyrgyzstan, while very donor-dependent, is far more developed and free than in other 

Central Asian countries, and became more confident following the March events. The environment for 

NGOs generally improved, with less government interference and harassment. Non-governmental 

organizations (NGOs), civic organizations, and media are able, at times, to exert positive influences on 

government policy and legislation. The new Parliament largely consists of inexperienced legislators who 

were expected to be loyal to former President Akayev, so it is still unclear what their loyalties or policy 

interests will be in the post-Akayev era. Local governments are increasingly transparent and responsive, 

although the process of fiscal decentralization is proceeding slowly due to a lack of high-level political will. 

Local elections held in 2001 were the first direct local elections in Central Asia and resulted in over 40% 

of the incumbents being ousted. The constitutional referendum held in February 2003 greatly increased 

presidential control and limited both judicial and parliamentary independence as well as the activities of 

civil society; President Bakiyev appeared increasingly uninterested in proceeding with reforms of the 

constitution to reduce presidential powers, but the process of drafting amendments is continuing. 

USAID faces the challenge of identifying and securing new opportunities to work with the Government on 

reform, and of maintaining the direction of democratic reforms, at the national and local level. The flawed 

constitutional referendum in 2003 was a setback for democratic institutions; however, a process of 

constitutional reform has been restarted under President Bakiyev. Independent media still struggles to 

achieve sustainability, but the level of freedom of speech has increased, resulting in less official 

censorship and self-censorship. New opportunities exist to combat corruption, which persists and 

threatens to impede meaningful reform in numerous areas. A high turnover in government positions, 

especially at the local level, could disrupt the momentum of some reforms. Consolidating gains in 

freedom of assembly; freedom of speech; and increased political space for NGOs, political parties, and 

Parliament will require sustained USAID support. 

U.S. Assistance Priorities: Democracy and media programs in FY 2005 supported civil society 

development, civic advocacy, political party development, parliamentary transparency, independent 

media, local government reform, and prevention and protection activities to combat trafficking in persons. 

Our programs worked to expand the political space for political parties and NGOs, to increase 

sustainability of independent media outlets and encourage reporting that sought changes on political and 

social issues, and to assist professional associations and NGOs to develop more sophisticated, effective 

national advocacy campaigns. For the first time, local NGOs worked together on a coordinated campaign 

for free elections that encompassed voter education and monitoring activities. The legal education and 

civic education programs targeted the next generation of citizens and lawyers to encourage interactive 

learning and a focus on ethical behavior. The human rights program helped local activists to become 

more professional at monitoring and reporting on human rights abuses, and conducting advocacy on 

human rights issues. 

The new authorities, as well as civil society and independent media, will need our continued support to 

consolidate democratic gains. Our assistance can play an important role in constitutional reform to 

support a transparent and inclusive discussion process. We also plan to be engaged in ongoing 
4

development of political parties, assisting NGOs to monitor government performance and to conduct 

advocacy campaigns, and promoting the reform of the state TV/radio network. We will continue working 

in civic education, local governance, legal reform, anti-trafficking in persons, and human rights. In 

addition, we will launch new initiatives to support reform of law enforcement structures and judicial reform, 

as well as expand our parliamentary assistance. Our new conflict mitigation program will work with local 

communities to promote more accountable local government, youth employment, and community radio. 

The selection of Kyrgyzstan as a Millenium Challenge Account threshold country also raises the 

opportunity to engage more directly with the Government on corruption issues, the principal area of 

reform required before Kyrgyzstan can be considered for compact status. 

Program Performance: USAID’s efforts to promote democracy have made significant achievements in 

certain areas. USAID-funded NGOs participated actively in conducting voter education and monitoring of 

parliamentary and presidential elections in 2005. USAID supported the first-ever use of inking to mark 

voters, an effort that was effective in curbing multiple voting. The USAID-funded parliamentary program 

worked with parliamentarians and their staffs to introduce principles of transparency. Efforts to promote 

legislative transparency and public input also support the reform process in all other sectors in which 

USAID is active. The USAID local governance program collaborates closely with the USAID-funded fiscal 

reform program to implement decentralization reforms. These reforms continued to move, though slowly, 

towards the implementation of the law passed in 2004 on fiscal decentralization. A USAID-funded civic 

education textbook, which empowers students with knowledge of their rights, began to be used in all 

secondary schools nationwide. An assessment of security sector reform was conducted to determine the 

direction of a new program in this area. USAID assistance supported the process of reform of state 

media, including the drafting of a new law on broadcasting, to encourage a transformation to public 

service broadcasting. USAID provided support for discussions on constitutional reform and facilitated 

commentary by constitutional experts. NGOs conducted advocacy campaigns on issues such as labor 

migration and alcohol and tobacco advertising. 

While Kyrgyzstan does not appear to be sliding into open conflict, and conflict has not impeded program 

implementation, local-level conflicts erupted during the parliamentary election period and culminated in 

massive protests and some violence in Osh, Jalalabad, and Bishkek. The Andijan events in April pushed 

large numbers of Uzbek refugees into Kyrgyzstan, where their presence aggravated tensions in local 

communities. The border closure with Uzbekistan, and extremist elements that prey on the unemployed, 

are also sources of conflict. By the close of FY 2005, USAID was implementing conflict mitigation 

activities in 66 communities, primarily Ferghana Valley border communities, which have identified sources 

of local tension. Infrastructure and social projects directly benefited more than 534,000 people. The 

results included refurbished schools, health clinics, and new roads. Social projects helped to bring 

citizens of different ethnic groups together within communities and across borders. At the end of the 

fiscal year, USAID began a new generation of conflict programming to focus on job creation, youth 

leadership, and access to information in at-risk communities. 

ECONOMIC REFORM 

Country Situation: Kyrgyzstan was the first Central Asian Republic to undertake meaningful economic 

and social reform. It inherited one of the least competitive economies of the former Soviet Union, with 

relatively few natural resources other than water. While it has good agricultural, tourism, mining, and 

hydropower potential, it is handicapped by protectionist measures and corruption, both internal and in 

neighboring countries, serving to impede exports. Limited access to trade routes, deteriorating 

infrastructure, a heavy burden of external debt ($1.9 billion), a weak (although improving) banking sector, 

as well as internal corruption at all levels, threaten economic and political reform and limit growth. 

Economic indicators have been flat for 2005, owing to the disruption and loss of investor confidence 

following the March change of government. The Government approved several new, market-oriented 

laws developed with USAID assistance, including the Pledge Law, which facilitates credit by simplifying 

foreclosure, and the Law on Technical Regulations, which further deregulates the economy in compliance 

with World Trade Organization (WTO) commitments. Although the March 2005 ‘revolution’ brings hope 
5

for a more responsive government, it significantly destabilized state administration and staggered 

confidence in business circles. Even though Kyrgyzstan managed to avoid a financial crisis, the political 

instability and uncertainty in economic policy seriously affected production during 2005 (9.1% decline in 

industrial production and 4.1% decline in agricultural production during January to September 2005), 

increased unemployment, and stalled GDP growth (-0.4% for the first nine months of 2005). The current 

situation also is marked by an overall deterioration in the business environment. 

Similarly, in the energy sector, the Government has consistently lacked the commitment to make the 

reforms necessary to put the electricity sector on a more solid financial footing. This constitutes a major 

barrier to internal economic development and foreign investment. The Kyrgyz distribution system 

experiences losses of up to 40%, an extremely high figure which can be attributed to old infrastructure, 

theft, and corruption. As with other sectors, the new Government has yet to determine its policy in the 

energy area. Kyrgyzstan is home to many of the regions major dams and hydropower facilities and there 

is a strong interest by both Kazakhstan and Russia to develop hydropower to cover shortages. 

Agriculture is vital to Kyrgyzstan, as it represents 40% of GDP and 50% of employment. Since 

Kyrgyzstan is a semi-arid country, agricultural production is almost totally reliant on water deliveries from 

irrigation systems. These systems are in a serious state of disrepair and there is a critical need for the 

development of local, democratic institutions to take over their operation and maintenance. 

On the positive side, the Government does appear to be open to economic reform, as it is looking for a 

way to deliver on its promises of increased growth and reduced corruption. The new Government 

identified as its main goal a comprehensive and consistent fight against poverty. Prime Minister Kulov 

wants to approach it through accelerated development of an efficient, corruption-free market economy. 

U.S. Assistance Priorities: In FY 2005, USAID programs focused on accelerating economic growth by 

contributing to an improved environment for the growth of small and medium enterprises. Priorities 

included assistance 1) to strengthen the management and financial accounting capacities of SMEs; 2) to 

streamline the legal and regulatory environment affecting business, 3) to develop a system of commercial 

and land legislation in support of private enterprise and market development; 4) to improve budget and 

tax policies and practices; 5) to improve banking supervision; 6) to expand access to microfinance; 7) to 

improve business education; and 7) to develop agriculture and agribusiness through improved access to 

input supplies and agro-processors. Given the new environment in Kyrgyzstan, the Mission is assessing 

a number of new opportunities to strengthen the capacity of several key government agencies and the 

private sector, and to build a truly functioning public-private dialogue. In addition, USG assistance 

focuses on the development of a more sustainable energy sector and improvement of local capacity to 

manage critical water resources. In the future, USAID will move its focus in this sector to the 

development of a more efficient regional energy market. 

Given the new environment in Kyrgyzstan, the Mission is assessing a number of new opportunities to 

strengthen the capacity of several key government agencies and the private sector, and to build a truly 

functioning public-private dialogue. 

Program Performance: Firm-level consulting services to Kyrgyz businesses in the areas of Strategic 

Planning, Marketing, Finance, and Operations Quality Improvement were provided to 162 clients in FY 

2005; 75 of them were women-owned businesses. These businesses realized an annualized increase in 

client sales of 51%. As a direct result of USAID assistance, 48 investment constraints were reduced and 

four WTO post-accession constraints were removed, hitting the 50 constraints target for this year. Among 

other indirect benefits, the elimination of discretionary steps in state agency procedures, increase in the 

transparency of government revenues and processes, simplification of procedures, increased 

predictability of requirements, elimination of illegal checkpoints, lifting of unnecessary prohibitions and 

requirements, and curtailing unauthorized inspections, will free 26,313 work days and save over $4 

million dollars annually. 

Significant progress was made in increasing access to capital. This year, the focus of the USAIDsupported European Bank for Reconstruction and Development Micro and Small Enterprise Finance 
6

Program has been on regional expansion in order to offer finance in remote rural and economicallydepressed regions. The program expanded to five new towns with 21 new outlets. The outstanding 

portfolio grew by 141% to $22,700,000, of which female borrowers comprise 48%. The number of 

outstanding loans grew over two times, from 6,667 to 14,092; 55% of loand were to women. Within one 

year of operation, Frontiers, a wholesale regional microfinance lending facility based in Kyrgyzstan, 

generated a portfolio of $1,962,184, with 45% of it being lent to Kyrgyzstani microfinance institutions. 

Frontiers’ loans help microfinance institutions and credit unions to grow and expand regionally. USAID 

just completed its support to Bai Tushum Financial Fund. The fund’s current portfolio exceeds 

$5,760,000, which represents 3,014 active clients, of whom 36% are women. Bai Tushum already has a 

history of three commercial loans, which is a testimony to the Fund’s strong capacity and high prospects 

for further growth. 

Success was obtained through the introduction of new tools to strengthen water management. These 

tools allow Kyrgyzstan to predict with greater accuracy its internal water needs and the needs of 

downstream countries, allowing water reserves to be used for agriculture and electricity generation. The 

construction of a small hydro plant was also completed, increasing the electricity available to schools, 

medical facilities, and residents, and is expected to generate about 60 new places of employment in the 

community. Energy policy, however, proved to be a difficult area for success, primarily because of a lack 

of Government will and commitment to make reforms. USAID is currently considering a redesign of its 

policy work that would use a regional market to provide the Government with the desire to move forward. 

Finally, a new project called AgFin+ has achieved success in improving farm productivity. The project 

has helped farmers to connect to specific markets, improve their productive capacity, and overcome 

constraints in doing business. This year, this project worked with over 1,000 Kyrgyz small farmers to 

develop their productive capacity. As a result, these farmers improved their incomes by more than 50%. 

SOCIAL REFORM AND HUMANITARIAN ASSISTANCE 

Country Situation: Despite our success in the health sector, anecdotal evidence indicates that the overall 

health situation is poor and is in need of dramatic improvement. However, reliable statistics are either not 

available or outdated and a full-scale demographic health survey has not been conducted since 1997. 

Tuberculosis (TB) is a growing problem in the penitentiary system and HIV/AIDS is a growing problem 

among high risk groups. In addition, government budget allocations for the health sector need to 

increase significantly and the Government has not reinvested savings generated through reforms into the 

health sector. 

With the demise of the Soviet Union, Kyrgyzstan suffered a substantial deterioration of the once strong 

education sector. Schools lack resources to maintain their buildings and pay staff salaries. Extremely 

low salaries of teachers provide a disincentive for the younger generation to pursue careers in education, 

as well as for qualified teachers to remain in the profession, resulting in a lack of teachers, particularly in 

rural areas. A high percentage of teachers will retire in the next few years; finding replacements will be a 

major problem. The new government is supportive of all education programs implemented by donor 

agencies, including the USAID Basic Education Program, which improves access to quality education, 

and the USAID National Scholarship Test Initiative Program, which combats university level corruption in 

the admission process. 

U.S. Assistance Priorities: Health programs in FY 2005 supported primary health care (PHC) reforms and 

prevention and control of infectious diseases, including HIV/AIDS, TB, and malaria. In 2005, USAID 

began the new five-year activity, ZdravPlus II, alternatively known as the Primary Health Care Reform 

Project (2005-2010); it will assist the Ministry of Health (MOH) to institutionalize past improvements and 

create a sustainable system to ensure the continued provision of quality, efficient health care. USAID’s 

programs assisted the MOH in the development of the next national health reform strategy, known as the 

Manas Taalimi Program for 2006-2010. The program will be implemented using a sector-wide approach 

that pools donor resources with those of the Government. USAID will provide parallel technical 

assistance in support of Manas Taalimi. In the infectious disease area, the Central Asia Program for 
7

AIDS Control and Interventions Targeting Youth and Other High-Risk Groups (CAPACITY) was initiated 

to build technical capacity as a complement to the national HIV/AIDS program. CAPACITY will implement 

a $3.4 million grant from the Global Fund to Fight AIDS, TB, and Malaria (GFATM) to combat malaria. In 

addition, CAPACITY will promote transparency and efficiency in strategic planning, financial 

management, the procurement process, monitoring and evaluation, and coordination of the GFATM grant 

and other donor funding resources. 

Program Performance: Achievements in primary health care reform have contributed to increased 

efficiency and improved quality of care. Access to PHC service improved through the State Guaranteed 

Benefit Package, which provides free services to the entire population. Evaluation of visits to outpatient 

care by different socio-economic groups of the population shows improved equality in health services 

utilization. The World Bank, KfW, and the British Department for International Development have agreed 

to provide their support from 2006-2010 for a nationally-led Sector Wide Approach, through which donor 

funds will be pooled to complement USAID technical assistance and Government resources for the health 

sector. This is the first such model in Central Asia. Restructuring efforts achieved significant 

improvements in the efficiency of health care delivery. The share of health care expenditures devoted to 

PHC also improved dramatically, doubling from 15% to 33% between 2001 and 2005. USAID’s technical 

assistance has helped the MOH to develop its second health reform strategy, and to receive a $3.4 

million grant from the GFATM for malaria control. The application to the GFATM was developed with 

assistance from the World Health Organization under the USAID-funded Roll Back Malaria Program. 

USAID’s five-year Basic Education Program focuses on improving access to quality primary and 

secondary education in the Kyrgyz Republic. The program trains teachers in student-centered methods 

and supports the creation of low-cost learning materials, school community mobilization, education 

finance policy reforms, capacity building for education administrators, and limited infrastructure 

improvement. Despite efforts to increase public spending for education, funding for schools is lacking 

and inefficiently distributed. USAID has assisted the Ministries of Education and Finance to introduce a 

new financing mechanism based on a per capita formula, which is expected to bring equity in resource 

allocations in future budgets. Pilot teacher training programs based on interactive teaching 

methodologies are being developed and are slated for country-wide roll-out. The National Scholarship 

Testing Initiative, supported by USAID, allowed for transparent and fair distribution of state grants for 

undergraduate study. Since its introduction in 2003, more than 70,000 applicants took the test to 

compete for government-provided scholarships at colleges and universities. In 2005, the test began to be 

used by universities, not just for scholarship students but also for general admission purposes, and the 

Center for Educational Assessment and Teaching Methods, a local NGO, was established to take over 

administration of future tests. 
8

FY 2006 Program 

SO: 116-0131 Improved Environment for the Growth of Small and Medium Enterprises 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($3,528,000 FSA, $943,439 FSA carryover). 

USAID will strengthen central and local government fiscal management capacity and Parliament’s 

capacity to conduct economic and policy analysis. USAID will also provide support to implement a pilot 

program to introduce more transparent tax administration processes with the Bishkek City Tax 

Inspectorate. USAID will assist in implementation of zoning regulations to offer more transparent 

investment alternatives to existing and potential land owners and users. USAID’s planned new Business 

Environment Improvement Project will work with business associations, governments, and other 

stakeholders to increase the effectiveness and sustainability of local institutions and partnerships in their 

pursuit to improve the business, trade, and the legal environment. Principal contractors/grantees: 

Bearing Point, Chemonics International (CI), and to be determined (TBD) (primes). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($1,423,000 FSA, $19,200 FSA carryover). USAID’s Enterprise 

Development Project will train six local partners throughout Kyrgyzstan on trade transactions and help the 

e-commerce facility administered by the project to become a sustainable commercial service. USAID will 

shift its work in the area of Small and Medium Enterprise (SME) development from firm-level assistance 

to strengthening local business service providers to increase competitiveness of Kyrgyzstan’s SMEs. 

Future work will entail provision of technical assistance to SME support institutions, professional business 

associations, and the private sector. USAID will support implementation of International Financial 

Reporting Standards through increased sustainability of the professional certification program and 

professional accounting associations, ultimately to improve transparency and competitiveness of SMEs. 

Principal contractors/grantees: Pragma Corporation and TBD (primes). 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($400,000 FSA, $356,185 FSA 

carryover). USAID will continue to strengthen the quality of business and economics programs in high 

schools and higher education institutions by helping them to become more responsive to the needs of 

businesses, creating sustainable faculty development and advocacy mechanisms, and supporting 

educational institutions to move toward international standards. Principal contractors/grantees: Carana 

Corporation and TBD (primes). 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,309,000 FSA, $70,748 FSA carryover). Assistance will 

concentrate on the development of agribusiness through technical advice and specialized training 

courses. USAID will also contribute to this objective by improving land legislation and land management, 

and by eliminating constraints to the development of rural land markets. With an improved functioning 

land market, farmer beneficiaries will increase their land productivity. Principal contractors/grantees: 

International Fertilizer Development Center and CI (primes). 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector and Increase Access to Capital ($1,560,000 FSA, $8,989 FSA 

carryover). USAID will work with the National Bank of Kyrgyzstan to raise its compliance with Basel Core 

Principles. USAID will continue to strengthen the capacity of local banks and microfinance institutions to 
9

provide financial services to micro and small entrepreneurs on a sustainable basis. Special attention will 

be given to expand services to rural areas. Principal contractors/grantees: Bearing Point and TBD 

(primes). 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($140,063 FSA carryover). USAID will provide 

assistance to improve the commercial legislation framework. USAID will continue to build the capacity of 

legal professionals and the judiciary responsible for interpreting and applying laws and regulations, 

including third-party arbitration. Principal contractor/grantee: Associates in Rural Development (prime). 

FY 2007 Program 

SO: 116-0131 Improved Environment for the Growth of Small and Medium Enterprises 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($4,568,831 FSA). USAID will continue its 

assistance to Parliament in fiscal analysis and to central and local governments in strengthening their 

fiscal management capacities. Continued assistance will also be provided to implement zoning 

regulations. Further work will be conducted with business associations and the Government to improve 

the environment for businesses. Principal contractors/grantees: Bearing Point, CI, and TBD(primes). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($3,181,000 FSA). Support will be provided to expand 

opportunities for businesses to grow and become more competitive. USAID will continue its work on 

accounting reform. Principal contractors/grantees: TBD (prime). 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,856,371 FSA). Further assistance will be provided to 

develop the agribusiness sector and improve land productivity. Principal contractors/grantees: 

International Fertilizer Development Center and Chemonics International (primes). 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector and Increase Access to Capital ($1,049,797 FSA). The 

National Bank will receive further assistance to improve its supervisory capabilities. USAID will also 

support further expansion of access to finance for micro and small entrepreneurs through banks and/or 

microfinance institutions. Principal contractors/grantees: Bearing Point and TBD (primes). 

FY 2006 Program 

SO: 116-0161 Improved Management of Critical Natural Resources, Including Energy 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($335,000 FSA, $465,000 FSA carryover). 

USAID will implement a Regional Energy Market Assistance Program (REMAP) to provide technical 

assistance for the development of an electricity market in Central Asia. REMAP has the following 

objectives: 1) establish a transparent, competitive electricity market in Central Asia; 2) increase electricity 

trade in Central Asia, making development of hydroelectricity resources financially feasible, thereby 

stimulating economic growth; 3) introduce market-based solutions for current and future regional disputes 
10

related to hydroelectricity facilities and reservoirs; and 4) build the capacity of regional electricity 

regulators to develop the electricity industry in the region, while protecting the interests of consumers. 

Principal contractor/grantee: to be determined (TBD) (prime). 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,055,000 FSA). Agricultural Finance Plus (AgFin+) aims to 

stimulate economic growth throughout the farm-to-market value chain. Through training and technical 

assistance, AgFin+ will assist farmers to overcome constraints they face in delivering products to targeted 

markets and to capture a return on their investment. The AgFin+ Program, complementing USAID's 

economic development activities such as small business development, will also stimulate agriculturerelated businesses such as agri-services, agri-trade, and agri-processing, which are critical to the farm-tomarket chain. Through improved production tied to specific markets, AgFin+ will link farmers to 

underserved markets, address financial constraints, provide on-farm support, and coordinate with other 

agricultural sector programs and institutions. Principal contractors/grantees: Development Alternatives 

Inc. (prime) and Winrock International (sub). 

The growth of rural economies in Central Asia depends on local control of resources and increased 

citizen participation in decisionmaking. Local management of irrigation water resources is critical to the 

agricultural economy of Kyrgyzstan. USAID will continue its assistance to Water User Associations 

(WUA) to promote and stimulate WUA policy and procedural reforms, develop irrigation system 

demonstration models, conduct public outreach campaigns, and implement a grants program to assist 

WUAs. Principal contractors/grantees: Winrock International (prime), Academy for Educational 

Development (sub), and New Mexico State University (sub). 

FY 2007 Program 

SO: 116-0161 Improved Management of Critical Natural Resources, Including Energy 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($492,350 FSA). USAID will continue to work 

with Kyrgyz authorities on bilateral and multilateral agreements that support the development of a 

regional energy market through REMAP. Principal contractor/grantee: TBD (prime). 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,304,650 FSA). USAID will continue to invest in agricultural 

development by continuing work with targeted groups and markets, and assisting them to identify 

opportunities and overcome constraints in the farm-to-market value chain. USAID will also continue 

assistance to WUAs, including replication of efficient irrigation demonstration models; expanding public 

outreach to farmers, government, and other donors; and implementation of a competitive small grants 

program. Principal contractors/grantees: same implementers as above. 

FY 2006 Program 

SO: 116-0211 Strengthened Democratic Culture Among Citizens and Target Institutions 

Establish & Ensure Media Freedom & Freedom Of Information 

Establish and Ensure Media Freedom and Freedom of Information ($800,000 FSA). USAID will provide 

technical assistance to the state broadcasting agency to help develop the organization’s understanding of 

how to operate as a public broadcaster, as well as legal support to print and broadcast media to comply 

with local media regulations. In addition, USAID will provide production grants to local television stations 

to increase the availability of news and other analytical programming. Principal contractor/grantee: 

Internews (prime). 
11

Promote Effective and Democratic Governance of the Security Sector 

Promote Effective and Democratic Governance of the Security Sector ($700,000 FSA). USAID will 

provide technical assistance to the Government to develop a strategic reform plan for the police. This 

plan will serve as the overall framework within which short-term initiatives will be identified to demonstrate 

to the public that the police are becoming less corrupt and more responsive to citizens’ needs. USAID will 

fund a series of information activities to expand public knowledge of the reform process, and the role of 

the police in a democracy. Principal contractors/grantees: to be determined (TBD) (prime). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($350,000 FSA, $235,674 FSA carryover). USAID will provide financial 

support for information campaigns on trafficking, for the provision of services to trafficking victims through 

a network of shelters, and for the opening of a shelter to meet the needs of those trafficked for labor. 

USAID will also provide training to health workers on the treatment of victims, and to non-governmental 

organizations working on counter-trafficking to increase their financial and institutional sustainability. 

Principal contractor/grantee: International Organization for Migration (prime). 

Strengthen Civil Society 

Strengthen Civil Society ($1,250,000 FSA, $245,015 FSA carryover). USAID will provide funding for civic 

advocacy campaigns at the national level on democracy-related themes, including human rights, with a 

focus on campaigns that put forward the views of nationally representative or broad-based coalitions of 

organizations. To build upon prior civil society strengthening programs, USAID will provide technical 

assistance and training to existing networks or associations of non-governmental organizations (NGOs) to 

increase their sustainability. In addition, USAID will provide training to the growing number of youth 

organizations on organizational development, strategic planning, and NGO management. Principal 

contractors/grantees: Freedom House (prime), National Democratic Institute (prime), and others TBD. 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($485,000 FSA carryover). USAID will provide training and 

technical assistance to political parties to increase their constituency relations skills and their ability to 

develop programmatic platforms. USAID will also provide technical advice to the Central Elections 

Commission and other governmental organizations to improve the legal framework for elections 

administration and political party operation. Principal contractors/grantees: International Republican 

Institute (prime) and International Foundation for Electoral Systems (IFES) (prime). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($1,100,000 FSA). USAID will expand its 

technical assistance and training to local governments to cover a greater number of districts and to 

provide more in-depth expertise on participatory budgeting, citizen relations, and financial management. 

Principal contractors/grantees: TBD (prime). 

FY 2007 Program 

SO: 116-0211 Strengthened Democratic Culture Among Citizens and Target Institutions 

Establish & Ensure Media Freedom & Freedom Of Information 
12

Establish & Ensure Media Freedom & Freedom of Information ($1,410,000 FSA). USAID will provide legal 

advice to independent media and financing for the production of news and informational programming. 

Principal contractor/grantee: TBD (prime). 

Promote Effective and Democratic Governance of the Security Sector 

Promote Effective and Democratic Governance of the Security Sector ($575,927 FSA). USAID will 

provide technical assistance for implementation of the Government of Kyrgyzstan's police reform plan. 

Principal contractor/grantee: TBD (prime). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($169,933 FSA). USAID will provide financing to local non-governmental 

organizations for the provision of services to trafficking victims as well as technical assistance to these 

same organizations to increase their sustainability. Principal contractor/grantee: TBD (prime). 

Strengthen Civil Society 

Strengthen Civil Society ($1,000,140 FSA). USAID will provide financing to NGOs to conduct national 

advocacy campaigns on democracy issues, with a focus on anti-corruption and human rights. Principal 

contractor/grantee: TBD (prime). 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($200,000 FSA). USAID will provide training to political parties on 

organizational issues and institutional development. Principal contractor/grantee: TBD (prime). 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($1,000,000 FSA). USAID will provide technical assistance to the court 

system to improve the efficiency with which commercial and anti-corruption cases are handled. Principal 

contractor/grantee: TBD (prime). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($1,100,000 FSA). USAID will provide 

technical assistance and training to local governments on the use of participatory budgeting, asset 

management, and service delivery. Principal contractor/grantee: TBD (prime). 

FY 2006 Program 

SO: 116-0240 Conflict Mitigation 

Mitigate Conflict and Support Peace 

Mitigate Conflict and Support Peace ($690,000 FSA, $204,403 FSA carryover). Through the Peaceful 

Communities Initiative, USAID is focusing on building stronger relationships between citizens and local 

government in order to mitigate against conflict by more effective allocation of budgetary, natural and 

physical infrastructure resources. A second aspect of the program is focusing on social activities such as 

youth summer camps or tolerance training to bridge differences between ethnic communities living in 

close proximity. The first full year of the new Collaborative Development Initiative is focusing on local 
13

economic development to increase employment, promote youth leadership, and increase access to 

information through collaborative partnerships between citizens, local government, community leaders 

and businesspeople. Principal contractors/grantees: Mercy Corps (prime), Internews (sub), and Urban 

Institute (sub). 

FY 2007 Program 

SO: 116-0240 Conflict Mitigation 

Mitigate Conflict and Support Peace 

Mitigate Conflict and Support Peace ($899,000 FSA). The final year of the Collaborative Development 

Initiative will focus on hand-over mechanisms to ensure communities can continue efforts for local 

economic development on their own as a way to increase employment, promote youth leadership, and 

expand access to information. Principal contractors/grantees: Mercy Corps (prime), Internews (sub), and 

Urban Institute (sub). 

FY 2006 Program 

SO: 116-0320 Increased Utilization of Quality Primary Health Care for Select Populations 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($1,683,000 FSA, $41,123 FSA carryover). USAID’s health reform 

program, ZdravPlus II, will continue to support the Kyrgyz Government to increase utilization and quality 

of primary health care (PHC) services through the implementation of the Manas Taalimi National Health 

Reform Program. ZdravPlus II will work to improve continuing medical education for doctors, nurses, and 

feldshers (paramedics). USAID will expand its program to train midwives to provide family planning 

services to additional districts where there are insufficient gynecologists to reach PHC facilities at least 

once a week. USAID’s maternal and child health program, Healthy Family, will train health providers on 

antenatal care, newborn care, and integrated management of childhood illnesses. Healthy Family will 

also develop and roll out national guidelines on infection prevention. Health center supervisors will 

receive training to upgrade their management and technical skills. USAID will continue to support the 

implementation of the World Health Organization-recommended live birth definition at the national level. 

Principal contractors/grantees: Abt Associates (prime), Morehouse University School of Medicine (sub), 

John Snow Inc. (sub), Boston University (sub), Citihope (sub), Socium Consult (sub), Scientific 

Technology and Language Institute (sub), Institute for Sustainable Communities (sub), U.S. Centers for 

Disease Control and Prevention (CDC) (prime), and Project Hope (prime). 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($683,000 FSA). USAID’s TB Control 

Program will continue to support the implementation of the Directly Observed Treatment, Short Course 

(DOTS) strategy, and will improve surveillance systems, laboratory quality, and rational drug 

management. The program will strengthen national commitment and build political support for effective 

TB control, build human and systems capacity, and raise community awareness. The Centers for 

Disease Control and Prevention (CDC) will expand its surveillance activities on TB and conduct TB 

laboratory quality assurance training. CDC will continue to train Kyrgyz professionals through the Applied 

Epidemiology Training Program (AETP). Principal contractors/grantees: Project HOPE (prime), Johns 

Hopkins University Bloomberg School of Public Health (sub), John Snow Inc. (sub), New Jersey Medical 

School National TB Center (sub), and CDC (prime). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS ($1,099,000 FSA, $4,841 FSA carryover). Through the 

Central Asian Program on AIDS Control and Intervention Targeting Youth and High-Risk Groups 
14

(CAPACITY), USAID will continue its assistance to the Kyrgyz Government in implementing two grants 

from the Global Fund to Fight AIDS, TB, and Malaria. The project will also increase the capacity of local 

non-governmental organizations (NGOs) to reach vulnerable groups and will work with other donors to 

leverage additional resources. Training will be provided to health professionals to improve their skills in 

counseling, testing, and antiretroviral treatment. CAPACITY will work to improve resource use through 

integration of HIV/AIDS services into the overall health system. CDC will continue training Kyrgyz officials 

to use data from HIV sentinel surveillance, and will continue developing blood screening systems. 

USAID’s Drug Demand Reduction Program (DDRP) will expand peer outreach work in the Fergana 

Valley, including Osh and Jalalabad. The DDRP Youth Power and Street Choices programs will focus on 

increased coverage of at-risk youth living along major drug routes in the region. The program will support 

NGOs working with prisoners and those working on treatment readiness and rehabilitation. The national 

HIV/AIDS program will employ DDRP’s Unique Identifier System for client tracking. Principal 

contractors/grantees: John Snow Inc. (prime), Population Services International (sub), Abt Associates 

(sub), International HIV/AIDS Alliance (sub), Howard University (sub), Alliance for Open Society 

International (prime), Open Society International-Kyrgyzstan (sub), Accord (sub), AIDS Foundation EastWest (sub), Internews- Kyrgyzstan (sub), and CDC (prime). 

FY 2007 Program 

SO: 116-0320 Increased Utilization of Quality Primary Health Care for Select Populations 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($2,987,000 FSA). ZdravPlus II will continue to operationalize the 

Manas Taalimi National Health Reform Program, incorporate the Sanitary and Epidemiological Services 

system into these reforms, and ensure that vertical, disease-specific programs are integrated fully within 

the primary health care system. The program to increase access to family planning services by training 

midwives will continue to be rolled out. Healthy Family will continue to improve the quality of maternal, 

child, and reproductive health care services in pilot areas. USAID will continue to support implementation 

of the World Health Organization-recommended live birth definition at the national level. Principal 

contractors/grantees: Same implementers as above; additional contractors/grantees TBD. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($767,000 FSA). CDC will continue the 

AETP to support the Ministry of Health with identification, investigation, documentation, and dissemination 

of information about outbreaks of infectious diseases through a trained cadre of public health 

epidemiologists, and will continue work to build capacity for TB surveillance. The TB Control Program will 

continue to work towards building an effective national response to TB. Principal contractors/grantees: 

same implementers as above; additional contractors/grantees to be determined (TBD). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS ($739,000 FSA). USAID’s CAPACITY project will continue 

activities to strengthen implementation of the national strategy to prevent and control HIV/AIDS. CDC will 

continue to improve capacity for HIV surveillance and blood screening. In 2007, DDRP will transfer its 

best practice models for work with vulnerable youth and other target groups to local government and 

private counterparts. Principal contractors/grantees: same implementers as above; additional 

contractors/grantees TBD. 

FY 2006 Program 

SO: 116-0340 Improved Quality and Access to Basic Education in Target Areas 

Achieve Equitable Access to Quality Basic Education 
15

Achieve Equitable Access to Quality Basic Education ($120,000 FSA, $51,133 FSA carryover). Funding 

in FY 2006 will be used primarily for program management needs. In FY 2006, training and resource 

development at pilot schools and teacher training institutes will continue. USAID will identify an additional 

four Professional Development Schools (PDS) in the south of Kyrgyzstan where access to in-service 

teacher training is most limited. Linking these PDSs to 20 additional surrounding cluster schools will 

further expand methodology training for teachers of primary and secondary grades. We expect that more 

than 80,000 students will benefit from project activities and 2,300 new teachers will receive training. Inservice teacher training institutes will begin to issue joint certificates with the USAID-supported PDSs. 

The new mechanism for financing in-service teacher training introduced in 2005, based on a pre-paid 

voucher, will be fully adopted in the Issyk-kul Region. Under the new scheme, each teacher will receive a 

pre-paid voucher, which can then be used to pay for methodology training offered by a variety of training 

providers, both private and state-owned. To address the broader problems in education finance, a new 

finance mechanism based on a per capita formula will also be piloted in Tokmok in FY 2006, introducing 

incentives for greater efficiency in the provision of educational services. Training for school 

administrators and local education authorities in school management will continue at the pilot schools. 

Principal contractors/grantees: Academy for Educational Development (prime), Open Society Institute 

(sub), and Abt Associates (sub). 

USAID will provide funding for the National Scholarship test, to further strengthen the local nongovernmental organization (NGO) Center for Educational Assessment and Teaching Methods (CEATM) 

in its capacity to develop and administer the nationwide scholarship exam. Funds will also be used to 

partially offset the cost of the 2007 test to prevent an increase in test fees. Principal contractor/grantee: 

CEATM (prime). 

Following the recommendations of the independent mid-term program evaluation, which took place in FY 

2005, USAID will fund in-depth assessments to explore potential program directions for a follow-on 

activity, on issues such as pre-service teacher training and education finance. Principal 

contractors/grantees: to be determined (TBD) (prime). 

FY 2007 Program 

SO: 116-0340 Improved Quality and Access to Basic Education in Target Areas 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($154,000 FSA). USAID will explore opportunities to 

use the capacity built during the first four years of this objective, and focus on institutionalizing the reform 

process. Program directions may include integrating modern teaching methodologies in pre-service 

teacher training institutes and linking the institutes with the Professional Development Schools, and 

continued reform of education finance. Principal contractor/grantee: TBD 

FY 2006 Program 

SO: 116-0420 Cross-Cutting Programs 

Program Support 

Program Support ($1,545,000 FSA, $458,557 FSA carryover, $88,272 FSA prior year recoveries). 

Participant Training Program: USAID will continue participant training to complement ongoing technical 

assistance in the following areas: improved environment for growth of small and medium enterprises, 

enhanced trade through cross-border opportunities, strengthened democratic culture, improved 

management of critical natural resources, increased utilization of quality primary health care, sources of 

conflict mitigated in target communities, and quality of education improved. Of particular note, the 

participant training program will continue to capitalize on opportunities in Kyrgyzstan that arise as a result 

of the political events that transpired during FY 2005. In spring 2006, a conference will be organized with 

training resources to bring together religious leaders from across the region to discuss religious 

extremism. More than 2,000 participants will be trained through participant training activities in 
16

Kyrgyzstan during FY 2006. Principal contractor/grantee: Academy for Educational Development (prime). 

Community Connections: In FY 2006, USAID will begin implementation of the Community Connections 

Program, a public diplomacy initiative previously funded by the State Department. Through the program, 

approximately 50 Kyrgyz citizens per year will participate in exchanges to promote mutual understanding 

between the United States and Kyrgyzstan through exposure to U.S. society and personal connections 

with Americans. The Community Connections Program will help achieve U.S. Government priorities in 

Kyrgyzstan by targeting individual entrepreneurs and professional groups that are central to economic 

and democratic reform. Exchange programs will last from 3-5 weeks and will be tailored to the individual 

needs of participants. Principal contractors/grantees: World Learning (prime) and American Councils for 

International Education (sub). 

Eurasia Foundation: The Eurasia Foundation will target approximately 20 NGOs that contribute to private 

sector development and civil society strengthening through small grants. The NGOs will also benefit from 

institutional strengthening through intensive planning, reporting, and financial management training. In 

particular, in FY 2006, Eurasia Foundation will expand its Ferghana Valley Initiative through its newlyestablished local office by providing targeted grants to increase dialogue and cross-border linkages in this 

conflict-prone region. Additionally, grants will focus on strengthening independent media, improving local 

universities, and expanding eco-tourism opportunities. Principal contractor/grantee: Eurasia Foundation 

(prime). 

Program Support: A wide range of program support will continue to be funded, including evaluations, 

technical assistance, management needs, public outreach, and staff costs. As required, funding will 

enable USAID to take advantage of unanticipated opportunities to advance or reinforce USAID strategic 

objectives. Furthermore, USAID will expand outreach efforts to engage traditional religious leaders in the 

region. The goal of this initiative is to better inform religious leaders about USAID programs and to bridge 

the gap with traditional community leaders whose views, in the past, have not generally been 

incorporated into USAID programmatic decision making. In accomplishing this goal, USAID will conduct 

tours of its programs for religious leaders and the media, hold regular representational events with 

religious leaders, and work with technical assistance providers to incorporate religious leaders into 

development activities. Principal contractor/grantee: N/A. 

FY 2007 Program 

SO: 116-0420 Cross-Cutting Programs 

Program Support 

Program Support ($1,990,000 FSA). 

Community Connections: USAID will continue the Community Connections Program, providing both 

professionals and businessmen with the opportunity to learn about U.S. society while enhancing their 

knowledge in areas of expertise. Approximately 50 Kyrgyz citizens will participate in the program during 

FY 2007. Principal contractors/grantees: World Learning (prime) and American Councils for International 

Education (sub). 

Eurasia Foundation: The Eurasia Foundation will continue to provide grants and institutional 

strengthening on an open-door basis to approximately 20 NGOs in Kyrgyzstan that work in the sectors of 

private enterprise development, civil society strengthening, and public administration. Principal 

contractor/grantee: Eurasia Foundation (prime). 

Program Support: A wide range of program and personnel support activities will continue. As required, 

funding will enable USAID to support unanticipated opportunities to advance or reinforce USAID 

objectives. Additionally, religious outreach efforts will continue and be expanded, through tours for and 

representational events with religious leaders. Principal contractor/grantee: N/A. 
17

Results Framework 

116-0131 Improved Environment for the Growth of Small and Medium Enterprises 

Program Title: Small and Medium Enterprises 

 IR 1.3.1: Increased Opportunities to Acquire Business Information, Knowledge, and Skills 

 IR 1.3.2: More Responsive Financial Institutions, Instruments, and Markets 

 IR 1.3.3: Increased Implementation of Laws and Regulations 

116-0161 Improved Management of Critical Natural Resources, Including Energy 

Program Title: Energy and Water 

 IR 1.6.1: Increased Management Capacity in the Natural Resources Sector 

 IR 1.6.2: Improved Policy and Regulatory Framework 

 IR 1.6.3: Sustainable Models Developed for Integrated Natural Resources Management 

 IR 1.6.4: Public Commitment Established for Natural Resources Management Policies 

116-0211 Strengthened Democratic Culture Among Citizens and Target Institutions 

Program Title: Democratic Culture and Institutions 

 IR 2.1.1: Stronger and More Sustainable Civic Organizations 

 IR 2.1.2: Increased Availability of Information on Civic Rights and Domestic Public Issues 

 IR 2.1.3: Enhanced Opportunities for Citizen Participation in Governance 

 IR 2.1.4: More Effective, Responsive, and Accountable Local Governance 

116-0240 Conflict Mitigation 

Program Title: Conflict Prevention 

 IR 2.4.1: Strengthened Community Participation 

 IR 2.4.2: Improved Local Services Through Community Decisions 

116-0320 Increased Utilization of Quality Primary Health Care for Select Populations 

Program Title: Health and Population 

 IR 3.2.1: Select Populations are Better Informed about Personal Health Care Rights and Responsibilities 

 IR 3.2.2: Improved Quality of Health Care including Infectious Diseases and Maternal and Child Health 

 IR 3.2.3: Improved Use of Health Care Resources for Primary Health Care 

 IR 3.2.4: Improved Legislative, Regulatory, and Policy framework 

116-0340 Improved Quality and Access to Basic Education in Target Areas 

Program Title: Strengthened Basic Education Sector 

 IR 3.4.1: Improved Quality and Access to In-Service Teacher Education in Target Areas 

 IR 3.4.2: Increased Parent and Community Involvement in Target Areas 

 IR 3.4.3: Strengthened Institutional, Management, and Technical Capacity in the Education System 

116-0420 Cross-Cutting Programs 

Program Title: Cross-Cutting Programs