A loan of up to €2m will be provided by the EBRD, while the Swiss government will offer grants of €3.2m.
Naryn is the provincial administrative center of the Naryn Province in central Kyrgyzstan, with a population of about 36,000.
EBRD and Switzerland will also provide technical expertise to enhance the financial and operational management of Naryn Water Company.
Switzerland Ambassador in the Kyrgyz Republic René Holenstein said: "Good water quality and sanitation is critical for health and economic development.
"The signature of the bilateral agreement for the Naryn Water Project underlines the strong relationship that Switzerland and the Kyrgyz Republic have built up over the past years."
EBRD president Suma Chakrabarti said: "The modernisation of water and wastewater services in Kyrgyz cities is a priority for the EBRD’s work in the country and the Bank has developed a dedicated financing facility for the purpose."
EBRD has so far provided funding for nine cities in the Kyrgyz Republic to support critical investments in water supply and wastewater networks.
Image: The fund will help improve water and wastewater services for about 36,000 people in Naryn. Photo: courtesy of European Bank for Reconstruction and Development.
