This week, the economic events that took place in Kyrgyzstan were diverse. It was stated that investors do not come to the energy sector due to low tariffs, and the financial situation of families has improved. It is expected that the start of construction of the Kambar-Ata hydropower plant can be declared, the Kyrgyz ambassador invited Turkish investors, the implementation of the 2019 state budget has been announced, and all sectors have contributed to the growth of GDP. In connection with the coronavirus, Kyrgyzstan is already starting to look at alternative markets, and the country's energy sector this year will not be able to export electricity.
In general, the country's economy is moving, but the pace of development is still not large.
The situation of families in Kyrgyzstan. From Nov. 21 to Dec. 3, 2019, the International Republican Institute (IRI, USA) conducted a poll, in which 1483 residents of all regions of Kyrgyzstan took part.
According to IRI research, 41% respondents said their family’s financial situation has “improved slightly” over the past 12 months. In 2018, this indicator was 37%.
At the same time, 8% of respondents said about “significant improvement” in their financial situation (2018 - 7%). Also, compared with the 2018 study, the number of those whose financial situation “worsened slightly” decreased from 8% to 7%.
67% of respondents rated the economic situation of their family as “somewhat good”, 9% as “very good”.
About accounting control at the checkpoint. The Ministry of Economy of the Kyrgyz Republic announced this week that it is legitimate to carry out accounting controls when importing goods from Kazakhstan and reminds the Republic of Kazakhstan of the norms of the Burabay Protocol.
On Feb. 15, 2020, a response from the Kazakh side to the appeal of the Kyrgyz Republic to the WTO was published in media.
The apply of the minimum level of control prices is carried out by the legislation of Kyrgyzstan, which regulates the principles of determining prices for tax purposes in accordance with paragraph 12 of the Protocol on the procedure for levying indirect taxes (Appendix 18 to the EAEU Treaty), to ensure the completeness of indirect taxes. Kazakhstan can also apply such a mechanism.
With regard to the accounting of goods located near the checkpoints of the Kyrgyz Republic, the Ministry of Finance of the Kyrgyz Republic notes that, unlike Kazakhstan, Kyrgyzstan, according to clause 11 of Article 3 of the Protocol on certain issues of import and circulation of goods in the customs territory of the EAEU, dated October 16, 2015 (Burabay Protocol) has a right tokeep records of goods when they are imported from Kazakhstan.
The Kazakh side acknowledges that the authorized bodies of Kazakhstan carry out “monitoring” and verification of transit goods and shipping documents in order to administer VAT.
Hydropotential of Kyrgyzstan. At the 4th international congress and exhibition “Hydropower. Central Asia and the Caspian 2020 ”, which began this week in Bishkek, Bektur Maratbekov, head of the Renewable Energy Sources (RES) and Energy Supply Department of the State Committee for Energy and Subsoil Use of Kyrgyzstan, spoke about the energy potential of Kyrgyzstan.
He said that Kyrgyzstan has hydropower potential and great potential for generating clean energy on the rivers of Kyrgyzstan.
“On the Naryn river, 4 cascades of 34 power units can be put up. The average annual output is more than 35 billion kilowatt hours, there is also the Kazarman cascade of hydroelectric power stations and the Sarydzhaz cascade of hydroelectric power stations,” said Maratbekov.
He noted that at the moment there is an active search for investors who are invited to build hydroelectric power stations in promising areas.
Kambar-Ata hydropower plant. In the near future the Government could announce the start of construction of the Kambarata Hydropower Plant-1.
Speaking at the end of the 4th international congress and exhibition “Hydropower. Central Asia and the Caspian 2020” in Bishkek, chairman of the board of the National Energy Holding Aitmamat Nazarov said that in Kyrgyzstan there is a Kambarata HPP-1 project ready for implementation, which is one of the most promising energy projects for which negotiations are being held with investors.
“We are negotiating with several investors and financial institutions, I think we will soon announce the start of this project. We want to give national status to this project. The government will make an official statement about this,” Nazarov said.
When asked about the possible participation of Uzbekistan in the implementation of the project, Nazarov said that currently there is a memorandum on the joint construction of a hydroelectric power station with Uzbekistan.
Invitation to investors. This week, Kyrgyz Ambassador to Turkey Kubanychbek Omuraliev presented in the city of Bursa the investment climate and opportunities in the Kyrgyz Republic.
He met with Mayor of Bursa Alinur Aktash and expressed the need to establish twinning relations of Bursa with one of the cities of the Kyrgyz Republic.
During the trip, the ambassador met with the leadership, members of the Board of Directors and entrepreneurs of the Chamber of Commerce and Industry of the host country. He made a presentation on the investment climate and opportunities in the Kyrgyz Republic, on the conditions for doing business (liberal taxes, costs of doing business, etc.), macroeconomic indicators and foreign trade turnover of the Kyrgyz Republic, on the membership of the Kyrgyz Republic in the EAEU and public-private partnership projects.
“The ambassador invited businessmen to participate in the Kyrgyz-Turkish business forum held in summer 2020.
2019 budget. The total volume of total expenditures of the republican budget over the past year amounted to KGS 149 billion 108.5 million, Deputy Minister of Finance - Director of the Central Treasury of the Kyrgyz Republic Marlen Amandykov said.
He noted that the plan is completed by 92%. Compared to the same period last year, expenses increased by 5%.
Marking of goods. The State Tax Service of Kyrgyzstan is carrying out work on a pilot project for marking certain types of goods with digital identification tools.
As part of the pilot project, which runs until July 1, cigarettes, alcohol and shoes will be subject to voluntary labeling.
Upon its completion, from July 1, 2020, it is planned to introduce mandatory labeling by means of digital identification of alcohol and tobacco products during their production or import into the territory of the Kyrgyz Republic, as well as voluntary labeling of shoe products.
Contribution of all sectors. The economic growth of the Kyrgyz Republic in 2019 was provided by all sectors of the economy.
Minister of Economy of Kyrgyzstan Sanjar Mukanbetov said that by the end of 2019, macroeconomic and social stability was ensured in the country, and positive GDP growth rates were achieved. The real GDP growth rate amounted to 4.5%, excluding enterprises for the development of the Kumtor deposit - 3.8%.
According to information of Deputy Minister of Economy of the Kyrgyz Republic Avtandil Alybaev, economic growth is ensured by all major sectors of the economy, including: in agriculture, volumes grew by 2.6%, in industry - by 6.9%, in construction - by 10.6%, in service industry by 2.9%.
Non-Chinese markets. Minister of Economy of Kyrgyzstan Sanjar Mukanbetov told about what kind of work is being done to support entrepreneurs during closed borders with China due to the spread of a new type of coronavirus COVID-2019.
He said that after the New Year, somewhere in the middle of January, China begins the celebration of the Chinese New Year and traditionally the first quarter is much lower than the rest of the quarters. “According to the results of the first quarter, there should be no questions. But if this situation drags on, then some problems may arise,” Mukanbetov said.
He noted that the Ministry is doing some work in this direction, and according to the analysis there is a probability of a 0.2% reduction in exports to China.
“In this regard, in order to avoid large losses, the Ministry is developing an anti-crisis program. We meet with businessmen and carriers, hold meetings, advise, and actively work to find alternative markets,” Mukanbetov said.
Without hydroexport. In 2020, Kyrgyzstan will not export electricity to neighboring countries, Head of the Board of the National Energy Holding Aitmamat Nazarov told.
He said that this is due to the onset of the low water season in the country.
“On the contrary, it is planned to import electricity. Negotiations are ongoing, there are some agreements, but it has not yet been finally decided where the import of electricity will come from,” Nazarov said.
He also stated that the state debt of the Kyrgyz Republic is USD 4 billion 700 million, of which 1.5 billion dollars fall on the energy sector.
According to him, these loans were taken for various projects to replace boilers and air lines.
The cheapest rate and investors. There are no plans to change electricity tariffs today.
Head of the National Energy Holding Nazarov said that the National Energy Holding is not involved in setting electricity tariffs. “Why investors don’t come to build hydropower plants?” Because Kyrgyzstan has the cheapest electricity tariffs in Central Asia, and therefore there are no investors. When they see the benefits of their investments, then they will come,” Nazarov said.
Kabar News Agency
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