The main issue I want
to discuss today in our interview is the project
that will connect Uzbekistan, Kyrgyzstan and China.
We will be back to this issue later, but firstly
can we talk a little bit about the current state
of Railway network in Kyrgyzstan.
You have already an understanding about Central
Asia republics. Particularly, about the railroads.
Our road is very short: only 423 kilometers. Accurately,
324 kilometers. 100 kilometers are in the southern
part of the republic, and the rest are in the
north side. Why do I distribute in this way, because
within our republic these two roads aren't connected,
South and North aren't connected. And this is
the biggest problem. In order for us to transport
one load from south to north, we are passing three
countries: Tajikistan, Uzbekistan and Kazakhstan.
This distance costs tariffs to cross the boundaries.
And this is the biggest problem. The road doesn't
have any transit. The most important, after the
collapse of Soviet Union, the road became our
property. But during the Soviet times, the road
also was divided into two parts, and the northern
part was under supervision of Alma-Arty, and the
southern part was subordinate to Uzbekistan, Tashkent.
And from the beginning this became a problem for
us, because they were not developing our Kyrgyz
railroad networks. It was very good for tariffication
in the stations Lugovaya and Alamedin 1 in the
first place, and Alamedin 1 station in Ribachi.
But the last one remained unrealized, though you
know perfectly about the financial power of the
Soviet Union. Besides, there were no plants and
factories for repairing trains of load and passenger
transportation, and container packs. We did not
have an opportunity to repair the 40-pound containers.
After the separation of trains parks within the
Soviet Union, Uzbekistan took all the trains in
the southern part, and Kazakhstan in the northern
part. On that day when they were closing the border,
only that trains were left here, which were located
that time in the territory of our republic. And
they even were able to take most of the wagons.
And this was the way we were starting our Kyrgyz
independent railways. Besides, they did not have
their own information center. They were depending
on Russia and the Railroad of Kyrgyzstan. Up to
year 2001, I am leading this sector since 1998,
with the small vacation for six months.
Taking into consideration, the project that
will connect Uzbekistan, Kyrgyzstan and China,
is it a done deal already?
We were working on these conditions for the
last 10 years. Nowadays, after 10 years, we managed
to achieve the results that I've already mentioned
above. We had certain conditions for repairing
some of the trains, but I am not speaking about
purchasing of new stuff, whatever. Taking into
consideration, from the first day of our independence
, we did not have any investments. This enterprise
is a 100% state bond one. There is a law about
the railroads, which claims that the railroads
can't be privatized. This law was adopted nearly
in 1996. Nevertheless, we have 500 workers in
our department. Average salary is 3300 soms. I
would say that comparing with the republican scale,
it is a good salary. We are trying to achieve
all these by improving services' quality, economizing
and by rational use. And concerning your second
question, if you would allow me , I will show
it on the map.
This is Kyrgyzstan, here is Uzbekistan and Kazakhstan.
From the northern side we go only through Kazakhstan
to the other world from Bishkek station. From
the southern part we can go only through Uzbekistan
and Kazakhstan. This is the Kyrgyz railway in
the north, and in the south there are railroads
only in three places: in Tash-Kymir, Shamaldi-Sai,
Jala-Abad, Kok-Yangak and Osh. Even within this
south region these railroads aren't connected
each other, not talking about the whole republic.
And now to your question. We are planning the
project: Kashgar-China, Kashgar- Tory-Gar. We
are planning to go through Kok-Yangak to Tory-Gar.
If we are building a transit way, this way to
south-eastern Asia shortens the way for 1000 kilometers,
than that another way that goes through the Kazakhstan
territory. This is the shortest connection to
China. There is also the way from Russia, which
is 10000 times longer. Today we are very interested
in building of this road, with the length of 256
kms. There are two ways of building the road:
whether they are going this way or that way. But
it is not important. And now we are very actively
working on researching and preparing the technical-economic
data. If we will be able to build this road, it'll
be a way out for Kyrgyzstan to seas through China,
and it will be a continuation of Silk Road and
a transit from Europe to the East. I should say
that Kazakhstan isn't really interested in building
of this road, and so is Russia.
In terms of financing of the project. Who
will or could be the invertors. It will surely
will be very expensive.
Approximately, it will take about 2-3 billion
dollars. I should say that this is a real project.
China is ready to build it today. There are several
financial institutions which are offering to built
this road. It will depend very much on how Kyrgyzstan
will be able to negotiate with this financial
division, on which condition they will finance.
In terms of the economic impact this project
would have, what do you think the railroad will
bring for the economic development of Kyrgyzstan,
particularly in linking the south and north parts
of the country ? Do you think it is more important
than elementary roads, perhaps, in terms of economic
development?
I consider that nowadays our company is stable.
We are paying regularly all the taxes and salary,
we are paying for social fond, we are meeting all
of our international liabilities. We are the members
of several international organizations of railroad
cooperation. But we have a great load of old debts
after the collapse of the USSR. After year1998,
there was a great failure of Russia, which has influenced
to the economy of Kyrgyzstan. Since 1999 we are
firmly trying to improve our financial side. But
our country is very small with population of 5 mln.
And the building of this road will bring profit
, which will annually go direct to the state budget.
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Financially it seems
to be a challenge. I know that the current conditions
of the railway is that there are no plans for its
privatization. Nevertheless, will you consider a
join venture or partnership of foreign investors
to further develop, or perhaps create additional
links to neighboring countries as you have mentioned.
Will you consider giving certain parts of country
to foreign investors to develop railway systems?
We are interested in this. We see our development
in this: sharing and privatization of all auxiliary
subordinate services. Specialists on traces studied
this issue and have provided us two versions:
1)To start immediately privatization;
2) Firstly to make it profitable and then to privatize.
I chose the second version, in order not to implicate
certain issues such as social one. When I joined
this company, 7000 people were employed there. So
there wouldn't be any failures in transportation,
just in order to create all the conditions you could
work without any failures. We see certain goals
for ourselves, and we are working on them. As an
ancient Greek philosopher said: everything is changing
all the time. The most important thing is the work
with stuff: to prepare the stuff for transition
to new economic conditions.
During our conversation with Mr.Turbaliev and
as well as with minister of transport Mr. Jumaliev,
it was pointed the great future that tourism has
here in Kyrgyzstan. What is your opinion on joining
railways and tourism in Kyrgyzstan. It is something
that Switzerland did many years ago, and today Switzerland
is plotted by railway lines everywhere, even if
it is mountainous country What is your opinion on
the possible increase of private capital investment
there?
I think it is a future. I was almost in all the
countries of Europe and also in the USA. Everywhere
I saw what are you saying now. It's undoubtedly
that we have to connect all this. Did you visit
actually Issik-Kyl? Today having such good services
over there , all the region of western Siberia and
Kazakhstan are coming to have a rest, from Alma-Aty
they come by car ,which is about 250 kms long, and
from Russia and Siberia they came by our trains.
Of course, the economy of Kyrgyzstan will be developing,
service will be improved, then there will be a certain
need for such services. And we are interested in
transportation and there will be more money, and
we will have an opportunity to develop.
How much turns of money does the National Railway
Department of Kyrgyzstan annually have?
400 mln soms.
Couple more questions. One of them in your vision
and opinion on the investment climate in Kyrgyzstan.
Do you think that the right conditions are being
created for more investors coming?
I think in order to attract the investors, we should
have normal taxation for it. I think that if somebody
is going to credit, tariffs should be minimal. Is
somebody is investing his capital to our country,
we should provide them kind of vacation time, or
privilege time like 5 years.
The first condition should be that law must be attractive,
the conditions should be good and should be certain
guarantee that their money won't be in risk. This
all should be protected by Law. This is the first
criteria of all that.
In addition to learning about the most representative
companies also like to learn about the people in
the country. You being the top representative of
the National Railway of Kyrgyzstan and also being
invoking governor. What is your future vision of
the railway network?
I wouldn't answer only one question: about the lovers.
Everything else I will answer. I am 45 years old,
married and have 3 children: two boys and one girl.
The eldest son has married this year, and I have
already a daughter-in-law. My daughter is a second
year student in Medical Academy. The youngest son
is 7 years old and started his second year at school.
He is very active in learning English. I am very
good at computers. I am engineer by occupation.
I have worked in different duties. I had leaded
this company since 1998. Before that I was heading
the transport inspection. After graduating the university
I started working as a simple engineer. I am a depute
of second calling.
I told you about my hobby already. I am also an
honorable Railway worker, this degree was given
to me for my contribution to the development of
Railway, for my being head of this department and
also for the development of cooperation among the
railroads of the country.
In order to keep horses, you should first keep household.
First of all, feeding stuff and grain. In order
to get this grain you should plant them, cut it,
prepare equipment for all these tractors and cars,
as trains can't go to the mountains. I have a private
farm. I also like hunting for ibex, climbing and
play football. I play in the team of veterans of
deputes and people of government. We also go to
international meetings. This is shortly about myself.
Thank You very much. |
Mr. Omurkulov
Isa Sheishenkulovich