Kyrgyzstan’s economic week, July 17-22, 2017

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The week will be best remembered for entering to the Kyrgyz market of the Czech Republic, a little-known company, which won a tender for the construction of hydropower plants in Kyrgyzstan.

Czech investors: It was unexpectedly announced that Liglass Trading CZ, SRO is ready to invest $ 500 million in the projects of Upper Naryn cascade of hydropower plants. This news gave rise to an ambiguous reaction. Azattyk radio was the first to find the dossier on the company, as the head office of the radio is in Prague. The information was not comforting for the organizers of the tender, the winner of which was recognized the Czech company. However, afterwards, the winners, in the person of director of investment projects for Eastern Europe and Central Asia of LiglassTrading CZ, SRO Erzhi Vaizihvoski, hastened to reassure the public. At the future construction site in Naryn, he said that, an agreement was signed for the first stage of the construction of the Ak-Bulun HPP and Naryn HPP-1. US $230 million will be allocated for their construction, and the feasibility study of the facility will be developed at the expense of the Czech side. What is reassuring here is that all investments go without the guarantee of the Government of Kyrgyzstan. The Czech side claims that together with the coverage of the funds spent by RusHydro in the amount of $ 37 million, if they fail and do not fulfill their obligations, they promise to stop the construction and leave approximately $ 57 million in authorized capital for Upper Naryn cascade of HPPs and, that there are no benefits for them.

In addition, an important fact became known: the Czechs will work with Kyrgyzstan in the proportion of 50/ 50. This means that investors invest their money, cover all previous expenses of Russians, and after putting all the facilities into operation, profits will be divided in half with Kyrgyzstan.

Besides, Kyrgyz specialists said that that Kyrgyzstan will not have any risks in the construction of the Ak-Bulun HPP and Naryn HPP-1.

Shares decreased: Kyrgyzstan can receive dividends at the expense of its shares in Centerra Gold for more than 20 years, KyrgyzAltyn said. At the same time, the share of Kyrgyzstan in the Canadian company decreased from 32.1% to 26.6% shares. This happened last year, when the Canadian company issued new shares of the company to acquire the North American mining company Thompson Creek Metals Inc. (TCM).

Within the framework of this transaction, about 26.6 million shares were issued and placed on the market ($141.4 million were attracted). In addition, an additional issue of 22.3 million shares was exchanged for shares of TCM.

At the same time, the number of Kyrgyz shares in the amount of 77 401 766 owned by Kyrgyzaltyn did not change, but the issue of additional emission led to a decrease in the share of Kyrgyzaltyn in Centerra Gold Inc. The share of all other shareholders also fell proportionally.

The long-awaited Technopolis: The Government of the country .A decaled that the major project to create a Technopolis for textile and clothing production will be implemented in the next two years.

The implementation of this project will be completed in the next two years. For this purpose, a land plot was allocated for the construction of facilities. Domestic garments will be produced at the Technopolis, the Government said.

Under the project all small sewing enterprises will be united into a single cooperative and about 15 thousand jobs created. 40 hectares of land were allocated for the project in the suburbs of Bishkek. The project is financed by the Kyrgyz-Russian Development Fund, and the total amount is estimated at $ 30 million.

Export to EEU: Over the past two years, the Government of Kyrgyzstan has been able to improve the conditions for export of goods of Kyrgyz producers to the market of the Eurasian Economic Union. In particular, the state supports the producers of export-oriented agricultural products.

The Guarantee Fund has started operating to facilitate lending to small and medium-sized businesses, a new system of financing secured by warehouse receipts is being implemented, etc.

It is known that Russia and Kazakhstan, as the main trading partners from the EEU countries, take strict measures to prevent dangerous and falsified products from entering their markets and forcibly seize them. Kyrgyzstan will also begin to take measures to tighten compliance with the requirements of technical regulations for the supply of products from the EEU countries to the domestic market.

Kabar News Agency


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