Document of
         The World Bank


                                   Report No: 65969-KG




      RESTRUCTURING PAPER

              ON A

PROPOSED PROJECT RESTRUCTURING

                OF

AGRIBUSINESS & MARKETING PROJECT

         CREDIT 4015-KG
         PHRD TF053554


        DECEMBER 14, 2004


             TO THE

       KYYRGYZ REPUBLIC


        DECEMBER 20, 2011
                  ABBREVIATIONS AND ACRONYMS



ABCC   Agribusiness Competitiveness Center
CLMU   Credit Line Management Unit
FTTC   Food Technology Training Center
IDA    International Development Associations
IP     Implementation Progress
PDO    Project Development Objective
PHRD   Policy and Human Resources Development Grant
TA     Technical Assistance
TF     Trust Fund




          Regional Vice President:        Philippe Le Houerou
          Acting Country Director:        Alexander Kremer
         Sector Manager / Director:       Dina Umali-Deininger/Laszlo Lovei
                Task Team Leader:         Sandra Broka

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                             KYRGYZ REPUBLIC
                     AGRIBUSINESS & MARKETING PROJECT
                                   P049724
                                 CONTENTS

                                                                                         Page
ANNEX 3: EXTENSION OF CLOSING DATE ........................................................... 4




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                ANNEX 3: Extension of Closing Date
         KYRGYZ REPUBLIC — AGRIBUSINESS & MARKETING PROJECT,
                 P049724, CREDIT 4015-KG, PHRD TF053554

                                 Restructuring Paper

1. The closing date for Kyrgyz Republic, Agribusiness & Marketing Project, Credit
   4015-KG, P049724 will be extended from December 31, 2011 until June 30, 2012.
   At the same time, the PHRD Co-financing grant TF053554 for the project will also
   be extended until June 30, 2012.

2. The Kyrgyz Republic Agribusiness and Marketing Project, (IDA Credit of US$8.1
   million and a PHRD Co-financing Grant of US$4.75 million) was approved on
   December 14, 2004 and became effective on May 2, 2005. To date, 71% of the IDA
   Credit has been disbursed, and 87% of the PHRD Grant. Overall, the project
   continues to achieve good results. Most of the outcome indicators have been already
   achieved, and the remaining ones continue to be achievable. The project has assisted
   44 agro-processing enterprises with improvement of technological processes,
   marketing, sales, and financial management and accounting. Profits in the different
   client companies have increased by 25% - 91%, and sales by 15%-169% in different
   years. 109 trade deals (41,770 tons of products for US$14.7 million) have been
   facilitated, of which 92 % went to export markets. Under the credit line, 93 sub-loans
   have been extended in the total amount of US$6.05 million, with overall investments
   in the agribusiness sector generated through the credit line reaching US$10 million.
   The project’s Financial Management is rated Satisfactory. The audit reports for 2010
   with an unqualified (clean) opinion and the accompanying project financial
   statements were received on time and were acceptable to the Bank.

3. However, the ratings of both the project implementation (IP) and achievement of the
   development objectives (PDO) remain Moderately Satisfactory since their
   downgrading after the May 2011 mission. The lower ratings are driven by the slower
   than expected progress in implementation of two important activities: (i) creation of
   the Food Technology Training Center (FTTC) (Public Sector Investment
   subcomponent, total budget of US$850,000), and (ii) matching investment grant
   program (the Cooperatives Support subcomponent, budget of about US$800,000).

4. The proposed extension is necessary in order to complete the two activities described
   in paragraph 3 above, which would significantly contribute to upgrading the project
   to fully satisfactory both for IP and PDO achievement. An action plan has been
   agreed with the ABCC (the implementing unit for the TA component) on the
   establishment of the FTTC, which is being closely monitored. Disbursements of the
   cooperative matching grants, which is under the responsibility of the CLMU (the
   implementing unit for the credit line component), is also being closely monitored (as
   of today, grants in the amount of US$164,000 have already been approved).

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5. This will be the second extension of the project, the original closing date was
   December                               31,                                 2010.




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