Kyrgyzstan is carrying out higher education reforms geared at amending European standards in higher education management. Particular emphasis is placed on the adaptation of the Bologna process and European quality standards in higher education. At present, the transition to three-cycle education has been completed. A national qualification framework has been developed and approved. However, reforms of the universities’ management system so far have not kept pace. In particular, financial management systems are not adequately promoting university autonomy which is a precondition to cultivate innovative and competitive universities. The development of alternative management tools to the old management models increasingly requires the expansion of autonomy in the activities of higher education institutions. The aspect of financial independence occupies a prominent place in the system of autonomy of the university. This project is devoted to piloting and expanding new systems of university self-governance and increasing financial autonomy. By means of studying the European partners’ experience with expanding their institutional and financial autonomy, a model for university financial autonomy in Kyrgyzstan will be developed, piloted and evaluated. The project plans are to perform a needs analysis, develop an implementation strategy, develop a model of university financial autonomy, develop proposals for revision of legal regulations in close cooperation with the authorities in charge, and pilot training activities for staff from universities and ministries representatives.The project will study further prospects for increasing the financial, economic independence of universities in Kyrgyzstan, clarify the current, and projected limits of the powers of universities in the paradigm of developed and legally established model of autonomy, project will identify effective solutions to the complex process of financial and economic autonomy.