Sever Electro is one
of the companies that were created as a result of
the restructuring of the energy sector. Perhaps
then you can tell us what Sever Electro does and
what place it occupies within the energy sector
here in Kyrgyzstan.
As you know in July, 2001, there was a meeting
of the share holders and they decided to divide
us into four companies. Among these four companies
Sever Electro is the biggest one in Kyrgyzstan.
Sever Electro serves 52 percent of the electricity
consumers in the republic. We have the same people
working here as before the division of the company.
I work as a head of this company since 1963. I
haven't changed my profession. I was recommended
to work at the Soviet Party, but I have refused
from this position. I started here as a master
and now I am a general director. There were downfalls
and as well as accomplishments. The downfalls
were not fair. However, God exists and justice
always prevails, so I was appointed as a general
director in the year 2001 during the meeting of
the shareholders. We also had many problems, but
nevertheless we started from making a structure.
Nowadays, we employ 3200 people. We have 17 regions
of power circuits. The area of serving reaches
up to 500 kilometers one way. For example, Talas
oblast is 500 km away from here. I think that
the distribution of the assets of the company
was not fair. The National Grid took all the best
because it was at the head of us. It is a nature
of any person to get the best for you.
I am also a member of a parliament, a deputy
of Jogorku Kenesh, and I did all my best to make
a fair distribution of assets and make a function
of this divided company more successful.
Nevertheless, you claim that the National
Grid took the best part of the cake. However,
according to official sources Sever Electro will
be the first company to be privatized out of all
the electric companies, because it is the most
attractive one to investors. How can the investor
exploit this enterprise? Do you think this enterprise
is desirable to investors here in Kyrgyzstan?
I think that this company has to be privatized.
As you know, during the Soviet times electricity
was very cheap. We didn't think of saving electricity
and we treated like it was free of charge. Since
we are independent now, we start studying market
economy and we understand what market is. When
we are privatized, a part of it will be private
and there will be no mother-daughter relations.
We will be all at one level and this sector will
be developing because the loss of energy will
be less and the collection of money will be on
time. The situation we have now will lead to the
collapse of this sector. During the eleven years
of independence all the capital was invested into
high voltage, 110 volt and more. Previously, we
collected 17-20 percent of the payments for the
electricity in cash. Now, in a year and a half,
we collect 37 percent in cash. We get the recommendations
of the World Bank what to do, but it is not easy
as a mentality of our nation is different and
the laws about the energy are not complete. So,
if somebody steals electricity we cannot make
him responsible for that in criminal terms. We
have attracted different agencies to solve this
problem and now we have a tendency of raising
payments.
You've said that 37 percent of the collections
are being obtained from payments; This translates
into what sort of income for Sever Electro?
When the division of the company took place in
the year 2001 we had 181 million soms, but at
the first half of the year 2002 we have collected
262 million soms. For now we have no profit because
we lose 40-42 percent of energy. It is being stolen.
Previously, only population was stealing, but
now even the commercial organizations and industries
are doing it. So, now we have a commission from
the World Bank, which is headed by Sharm. We have
to change electricity counters, so that it would
be impossible to falsify an amount of used energy
on a display of a counter. Even our personal steals
electricity. We have caught some of them and have
fired. We cannot do everything at the same time.
In the middle of April we had a seminar of Sever
Electro and the Prime Minister Mr. Bakiev took
a part in it. We selected a house with 28 consumers
and checked how big was a loss. It was only three
percent. Of course, not everybody steals, but
we take care of this issue. Our controllers know
who steals and who doesn't. Pensioners usually
pay everything. So, looking at the western countries
we are moving forward, because sometime we will
be like that. It is a matter of time.
Perhaps, the future of the hydro-electrical
power generation industry in Kyrgyzstan is to
export all this power generated on the Naryn and
other mountainous rivers . Do you think there
is potential to export this, to make hydro-electricity
foreign exchange owner for Kyrgyzstan?
We have very rich energy recourses. During Soviet
times we were on the third place. There was a perspective
to build a station less than 500 kilovolt from the
Toktogul cascade up to Issyk-Kul and build there
a substation of 500 kilovolt. From there we have
two lines of 220 kilovolt to China. In 1996 I was
in Turkey and we had a summit of Central Asian countries.
During the summit we developed a scheme-perspective.
We intended to make lines from Kyrgyzstan to China,
from China to Pakistan and then back to us. I also
was in Belgium. In Belgium 20-30 years ago there
was coal, oil, gas and all this was used up. |
However, as to Kyrgyzstan
if the water disappears life itself would stop.
That is why Kyrgyzstan has a future, but without
the experts Kyrgyzstan will not prosper. If these
experts improve the social life, the economic sector,
and industries there would be a market economy in
Kyrgyzstan. I can say as a head of Sever Electro
that this will happen some day because the investors
come and invest. That is why we have perspectives.
I believe that we will provide ecologically sound
electricity to different countries. Now, people
say that Turkmenbashi provides gas and electricity
free of charge, but someday gas resources will be
exhausted. As well as Kazakhstan will be out of
coal. About 45 years ago I read a work of an American
doctor of economic sciences about his studies of
the economic systems of America and Africa. That
time I have learned that in the USSR we used the
natural resources not wisely. I even remember how
gas was dumped from the curs just to make a report
that it was delivered. That doctor was saying that
at one point the USSR would face a problem concerning
gas and oil. It happens right now. We have the price
as one at the international level.
In addition to exporting electricity there
is also the possibility of attracting heavy industries,
which rely on electricity. What is your opinion
on the possibility of attracting investors to
the industrial sector here because of the large
quantities of electricity that Kyrgyzstan is able
to provide?
Yes, they can use our cheap resources and produce
cheap products. It would be good for the development
of Kyrgyzstan to found such an industry here.
They will pay taxes and we will have a consumer
of electricity. Last year we have exported about
three billion Kilowatts mainly to Kazakhstan and
Uzbekistan. This year the export is very low.
It has not even reached one billion. Because we
are not exporting electricity this year we are
collecting water and by now we have 18 billion
square meters of water at the Toktogul storage
pool. According to the project we cannot have
more that 19 million square meters of water. Therefore,
Kyrgyzstan has a future. According to the project
there should be 23 hydroelectric stations of the
river Naryn. However, there are only six stations
there.
Nevertheless, Sever Electro will be privatized,
won't it? We spoke with a number of people amongst
which there was Mr. Jumaliev from the committee
of government property. Speaking about the energy
sector, he said that at first it has to be restructured
and then privatized. In terms of Sever Electro,
how do you think it will be privatized? Will it
be private investors, the majority shared, or
will it be a joint-venture partnership where a
foreign investor will be able to provide capital,
expertise, and perhaps even export markets?
My understanding of this issue is this. The investor
is careful about buying Sever Electro. He makes
a research. However, I don't know who would own
Sever Electro. There was a proposal made to lend
Sever Electro for 20-30 years to the investor,
who will teach us how to provide, to collect,
to distribute, and to export electricity. Two
years before, we have installed power counters
on the every substation. So, imagine a substation
and lines, which connect it with the different
houses. There are thirty houses per this substation.
So, th?re is one house and we tell to its host,
that he would get for free 50 percent of electricity
if we install all the counters at one place and
he will make sure that people don't steal. In
a month or two this person refuses to do it and
says that he doesn't want electricity free of
charge. So, people, who steal electricity, didn't
like it and they even broke the counters. Thus,
we spend a lot of money and lost it. Next year
the World Bank gives us loans to install special
counters and to use isolated electric wires. This
way, we will diminish the amount of energy loss.
Now, we are losing about 40 percent, but if we
diminish this loss up to 20 percent our income
would increase.
I have one last question this one more about
you. You have dedicated the biggest part of your
life to this company and to this sector. Perhaps,
you can tell us about your professional progression
and what you are most satisfied within your accomplishments
here in Sever Electro?
I have only one hobby. It is my work. People,
who work in the energy sector, have almost military
conditions because if something goes wrong with
electricity many sectors will fail producing their
goods. That is why I feel myself very happy that
I am such a good specialist. I also worked at
one building company as an engineer for 3 years.
During the years I have worked in this company
I was doing everything consciously. When I was
a candidate for a deputy position I stressed that
I don't want wealth and power. I wanted to be
in a parliament so that I could deliver the problems
of people, their wishes and desires. I also used
such an example. Alexander the Great conquered
almost all the world and when he was dying he
invited all the close people and requested that,
when they take him down to the grave they show
his hands. It means that he passed away without
any wealth, and it is left to people.
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Tolomush
Tojomkulov