AKIPRESS.COM - The electricity sector of Kyrgyzstan is in a difficult financial condition, is poorly managed, and is in urgent need of investment to improve service quality, said the IMF in a statement following a remote mission in the context of the 2021 Article IV consultation with the Kyrgyz Republic.

To strengthen its financial and operational viability, the mission recommends developing a medium-term reform plan to optimize costs, strengthen governance and accountability, and improve revenue generation.

While commercial tariffs are above cost-recovery, residential tariffs are well below this level, implying inefficient cross-subsidization. Any adjustment in residential tariffs, as recently announced by the authorities, would need to be paired with targeted social assistance to protect the most vulnerable households.