One of the key strategic development priorities of the National Sustainable Development Strategy for 2013-2017 and the Medium Term Development Programme for 2012-2014 of the Kyrgyz Republic is the promotion of sustainable economic growth and social inclusion. This is to be achieved through industrial infrastructure development, sustainable private sector development, advanced and resource efficient technology promotion, affordable housing provision, rehabilitation and expansion of irrigation systems for agriculture, and sustainable job creation. The Government of the Kyrgyz Republic requested UNIDO to provide technical assistance in the development of a technical assistance project aiming at creating new jobs, attracting advanced technologies and investment in the construction materials sector. The objective of UNIDO technical assistance is to facilitate the promotion of innovative and low-cost sustainable manufacturing technologies and disseminate knowledge in the area of cost effective and environmentally friendly building materials that can be easily absorbed by the local construction industry for housing and irrigation purposes. At the outset, the project will conduct a feasibility study to identify the best international and locally available technology solutions for the manufacturing of energy efficient, environmentally friendly and cost-effective building materials based on local raw materials. The technologies and know-how identified will be tested on site and used in the construction of low-cost demonstration houses and in the provision of technology solutions for rehabilitating irrigation systems. Modernization of the country’s building material sector through adoption of innovative technologies and capacity building activities will facilitate community level job creation and income generating activities in the beneficiary and other related sectors, and improve livelihoods, especially in rural areas.