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Sunday, September 20th, 2020

Kyrgyzstan simplifies procedure for initiating and preparing PPP projects

by December 10, 2019 Legal

The new version of the law on public-private partnership significantly simplified the procedure of initiating and preparing PPP projects, and eliminated a number of existing contradictions, Head of the Investment Policy Department of the Kyrgyz Economy Ministry Khanchoro Murzaliyev said at the press conference at Kabar News Agency.

According to Murzaliyev, the Public-Private Partnership Center has been reestablished.

“At present, 23 PPP projects are at various stages in the country, their total cost is about $300 million. Of these, 6 projects – in the field of transport, 5 projects – in the field of health care, as well as 5 projects – in education, 4 projects – in sports and tourism, as well as 1 project – in the fields of logistics, hotels and culture,” Murzaliyev said.

He noted agreements have been signed on three projects, which are under implementation: the organization of hemodialysis services in the cities of Bishkek, Osh and Dzhalal-Abad, reconstruction of the Kyzyl Kyrgyzstan cinema, e-ticketing in public transport.

“Previously, the procedure of approval of PPP projects between agencies before the launch of the project took about 2-3 years, but now we have been able to reduce this period to 1 year, the Investment Policy Department’s head said.

In turn, Director of the PPP Center in the Kyrgyz Republic under the Economy Ministry Daniyar Abdyldayev said the Center will be engaged in the selection and consultation of business on PPP projects.

“We are planning to sign in 2020 PPP projects worth about $300 million. What are the benefits of such projects for the state and businessmen?

For example, the Kyzyl Kyrgyzstan cinema has become unsuitable, and the infrastructure was outdated. The building was simply on the balance sheet of the state, and taxes were levied on it on a monthly basis, with other payments and expenses increasing, and the infrastructure needed to be improved, and the state did not have the opportunity to do so.

Accordingly, the Department of Cinematography of the Ministry of Culture, using the PPP mechanism, after 2-3 years will receive an updated, modernized cinema, fully equipped by the private sector. This is the benefit for the state. The state does not lose control over the implementation of PPP projects. The facility is given for temporary use to the private sector,” Abdyldayev said.

Source: Kyrgyz National News Agency