Kyrgyzstan's economic week, July 24-29, 2017

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Czech convincing. Michal Smelik, the head of Liglass Trading, who won a tender for the construction of the Upper Naryn cascade of hydro power plants, in his video message said that the company has a huge long-term experience in the field of transactions with renewable energy sources.

"This is a large number of aspects with which such transactions are related. This means finding a project, finding a market where this project can be implemented. To receive financial resources, and to find providers of services that will construct. This means that my experience consists in the ability to prepare a whole range of these services and coordinate them in such a way that the outcome satisfies all the parties, first of all my partners and me. I personally and the companies from the group of companies that I control took part in projects on the construction of power plants in many countries. For example, in the Czech Republic, Slovakia, Italy, England, Romania, Serbia, Russia (Chechnya), India. There were a lot of them and with my partners we implemented projects in total capacity of 1 gigawatts and in the amount of 2 billion dollars," Smelik said.

Czech contributions. The State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic) refuted a number of media reports on the non-payment of guarantee fees by Liglass Trading CZ, SRO, which won a tender for the construction of 10 small hydroelectric power stations in Kyrgyzstan. The State Committee's statement says: "We note with regret that the deliberate dissemination of unreliable, and sometimes even false, information is continuing with the aim of further trying to sway the situation and discredit the project.

The Arab contribution. President Almazbek Atambayev signed the Law "On Ratification of the Credit Agreement between the Kyrgyz Republic and the Saudi Development Fund on construction of the North-South highway (alternative Balykchy-Jalal-Abad highway) project signed May 17, 2017 in Jeddah, Kingdom of Saudi Arabia". The law was passed by the Jogorku Kenesh on June 22, 2017.

The agreement provides for the reconstruction of the section of the alternative North-South highway.

Funds from Saudi Arabia will be used to improve the state of 24 km of the alternative North-South highway, including excavation and drainage, asphalting and bridge reconstruction.

The contribution of migrants. In the five months of 2017, the amount of money transferred from migrants to Kyrgyzstan amounted to more than $ 615 million. For the same period last year, the amount of transfers was $ 456 million. According to some sources, this amount can significantly exceed all the remittances of migrants from Kyrgyzstan for all previous years.

Growth of investments. For 7 months of 2017, the volume of investment inflow to Kyrgyzstan increased by 30%, compared to the same period of the last year. Kyrgyz prime minister said that investments in the country's economy are needed as water and air for a person. "We must create the best conditions for investors," Zheenbekov said.

The government of Kyrgyzstan believes that the republic should become a haven for investors. “Everyone should try to create favorable conditions for businessmen. In this direction, the Government should strengthen its work,” the prime minister said.

The state debt. As of May 31, 2017, the amount of public debt was 288 billion 768 million soms. According to the information of the Ministry of Finance of the Kyrgyz Republic, 263 billion 215 million soms or 91.1% out of them are the external debt and 23 billion 553 million soms or 8.9% of them are the domestic debt.

Financial risks. Kyrgyzstan this year risks not to receive 8.9 billion soms in the budget. This concern was expressed this week by the Ministry of Finance of the Kyrgyz Republic. According to data of the ministry, there are several risks for budget fulfillment in the second half of the year. To date, the republican budget has already spent 19.8 billion soms. Of these, more than 700 million soms are aimed at solving problems from natural disasters, which were abundant at the beginning of this year.

Over 1 billion soms were spent for the construction of social facilities for law enforcement agencies of the country. In addition, 479 million soms were allocated for the presidential elections, and another 243 million for the development of education and other spheres. The Ministry called on all state budget agencies to reduce costs and additional requests. In the opinion of the Minister of Finance of the Kyrgyz Republic, if these 8.9 billion soms are not allocated to the budget, there is a risk of non-fulfillment of the budget.

Kabar News Agency


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