Bishkek, Feb.6, 2020. /Kabar/. Transferring country's airports to a public-private partnership (PPP) does not mean privatization, Director of the Public-Private Partnership Center under the Ministry of Economy of Kyrgyzstan Daniyar Abdyldayev said at the press conference at Kabar News Agency.
He said that the use of PPPs in airports is an international practice.
"We must improve the infrastructure of the airport, increase service level, improve equipment, supply airports, bring the level of services provided at the airport to international.
Before that, the Government had been working for many years to attract investors to the airports, but they were unsuccessful. Therefore, an interdepartmental working group has been established with the participation of experts, MPs, ministers and relevant leaders.
In December 2019, this working group determined the International Finance Corporation to provide advice on use of PPP model in airports. This corporation has extensive experience in working with airports," he said.
The PPP Center director stressed this does not mean privatization, and the airport is taken for a certain period of time, then new, modernized airport will be handed over to the state.
Abdyldayev also added the term for transferring airports to PPP has not been defined yet, but it would take maximum 30 years.
"As long as the airport is used by the PPP system, the state will also make profit. Perhaps, it will be 40/60 or 30/70 shares. This is international practice. For example, there is new airport operating on the principle of PPP in Istanbul (Turkey)”, he concluded.
The Government of Kyrgyzstan has taken the initiative to transfer the management of domestic airports to PPP.
It is the external management of Manas International Airport OJSC, which includes several airports in the country.
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