Economic week of Kyrgyzstan - July 3-8, 2017

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Digitalization. Last week was marked by frenzied activity of the Government and its head Soroonbai Zheenbekov. At a regular meeting of his cabinet, the Prime Minister instructed to transfer 189 public services from a total of 373 to the electronic format. The Head of Government said that the issues of electronic management and the introduction of electronic document workflow are the priority throughout the world, thanks to which the advanced countries managed to eradicate corruption and develop the economy.

This task fully fits with the Taza koom project, a high-tech project announced in the country. In general, in Kyrgyzstan over the last couple of years, the country's digitalization has been significantly updated - in May all TV companies completely transfer from analogue broadcasting and switched to digital broadcasting. Besides, prior to this, an action has started in Kyrgyzstan on transferring all passport data to a magnetic medium, a project was successfully implemented to transfer the election process to an automated version, when the result of voting will be counted online and with a sharp reduction in the possibilities for interference with results. Then, the Smart City project is launched, after which the task was set for the implementation of the Taza koom project, and thereby dramatically increase the use of digital technologies throughout the country.

It is believed that Taza koom project will accelerate the transition to the digital economy, which in the future creates a mobile and flexible state that is able to respond quickly to any modern challenges. To achieve these goals, it is necessary to implement an ambitious program for transforming the state, public and business environment. The modernization process will cover all key areas of the state.

Now the turn of Manas airport. The Russian-Kyrgyz Development Fund and Manas International Airport OJSC signed an agreement on the allocation of loan funds for the reconstruction of the international airport in Osh. The light-signal equipment will be purchased and installed, an artificial runway will be reconstructed, a specialized airfield fire truck will be purchased for the allocated funds.

To date, Russian-Kyrgyz Development Fund has financed 740 projects worth $ 234 million. Financing of transport and logistics infrastructure makes 10% of the Fund's portfolio.

Are investors found? This week it became known that the implementation of the construction project of the Upper-Naryn cascade of HPP will be carried out within the framework of public-private partnership. According to statements of some officials of the country, it seems that investors are found for the construction of this cascade of hydroelectric power stations. It was also stated that Kyrgyzstan will support the CASA-1000 project.

Kyrgyzstan's energy capacity could increase by 690 megawatts. After the Toktogul HPP reconstruction, the capacity is expected to be increased by 240 megawatts, at Bishkek's heat and power plant it is expected to increase the capacity by 300 megawatts after its reconstruction, the launch of the second unit at Kambarata HPP-2 will give another 240 megawatts and the reconstruction of the At-Bashy HPP will give increase by 4 megawatt. After the whole modernization of the energy sector, Kyrgyzstan will be able to cover the electricity deficit, which in 2015-2016 reached 2 billion 140 million kilowatt hours.

It's no secret that at the current tariffs for electricity, Kyrgyzstan will remain a debt country. According to data of the National Energy Holding, announced this week, the external debt of Kyrgyzstan's energy sector reached about $ 1.3 billion, and that the peak of debt repayments falls on 2024-2025. Experts stress the need to enter new markets and export electricity as the way out of the situation with debts. For the planned repayment of debts, it is necessary to export at least 500 million kilowatt hours per year. Coverage of debts will be facilitated by the fastest launching of the project for the transportation of electricity to South Asia within CASA-1000 project and the active participation of Kyrgyzstan in it.

Export to Uzbekistan. This week it was announced that Kyrgyzstan had agreed with Uzbekistan on the supply of electricity during summer time. In all respects, the purchase of electricity to a neighboring country is not due to energy shortages, but the need to ensure water supply of the agricultural sector of the country during the vegetative period. Under the contract it is planned to export 1.25 billion kW / h to the neighboring country up to October. The export price is 2 cents per kilowatt, which is within the limits of the allowed export prices.

Due to the fact that the winter period in Kyrgyzstan was snowy and the spring floods are still continuing, the volume of water in the main reservoir of the country reached 18.8 billion cubic meters of water by early summer, which makes possible to export the excess electricity to neighbors.

German aid. This week, negotiations were held in Berlin in the framework of bilateral technical and financial cooperation in 2017-2018 in order to develop relations between the governments of Kyrgyzstan and Germany. It was decided there that the Government of Germany will grant € 40.1 million to the Kyrgyz Government within the framework of bilateral cooperation for 2017-2018. Of this amount, € 19 million are provided for projects of financial cooperation, and € 21.1 million for technical cooperation projects.

At the talks, the German side supported the initiative to launch a new national Taza koom high-tech project and Kyrgyzstan's steps in the development and application of high technologies.

$ 50 million profit per year. Kyrgyzstan is one of the four countries that are actively working on the implementation of the CASA-1000 project. In Dushanbe, the leaders of the participating countries at the CASA-1000 summit came to a common opinion on the need to accelerate the physical implementation of the project. The CASA-1000 summit, where Prime Minister Zheenbekov took part, gave a good signal to the world community that all four countries - Kyrgyzstan, Tajikistan, Afghanistan and Pakistan - are committed to the speedy implementation of the project.

The project is well thought out and now needs to be implemented by the participants. For this purpose, the necessary documents have been collected and tenders conducted. In the near future, each country will determine the winners of tenders on its territory and starting in 2018 the project will be launched. According to data of Kyrgyzstan, the CASA-1000 project as a whole is estimated at $ 1 billion. Kyrgyzstan and Tajikistan will need to allocate $ 200-250 million from the total amount. However, after the physical launch of the CASA-1000 project, it will become a guaranteed source of income for Kyrgyzstan, and annually, due to the export of electricity, Kyrgyzstan will receive $ 50 million of profit due to the supply of electricity to energy-deficient Pakistan and Afghanistan.

Kabar News Agency

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