Can you give
us an overview of the current state of infrastructure
in Kyrgyzstan. What are the most urgent needs
and what developments have taken place so
far, how much progress has been made?
The infrastructure of Kyrgyzstan is working
in 4-5 directions, which are controlled
by this ministry. The first is cars and
car roads. In 1994 the president of the
country started to control the rehabilitation
of international and country roads. One
of high priority roads is Bishkek-Osh, its
length is 678 km. 500 km out of them is
being rehabilitated. Besides, we are planning
the further rehabilitation of roads. One
of them connects Central Asia with China.
This is Bishkek- Sary-Tash - Irkishtan -
China. Moreover because of restoration of
Afghanistan we got offer from Asian Development
Bank to rehabilitate the road Osh- Sary-Tash
- Dushanbe -Faizil -Abad. Besides that we
are starting the rehabilitation of Bishkek-Almaty
road. Another rehabilitation will take place
in Bishkek - Torugart- Kashkar road. In
addition, we are fixing city roads of Bishkek,
Osh and Jalal-Abad.
There are certain soft loans that were
granted by the Asian Development Bank, can
you tell us how institutions like this are
helping you in the development of infrastructure?
Yes, these are soft loans from Asian Development
Bank, World Bank, and Japanese Bank of economic
development. Conditions are very easy; loan
is given for 40 years, 0,75 % annual interest
rate. This is as far as roads are concerned.
Why are we rehabilitating these roads? Mountains
occupy 92 % of Kyrgyzstan's territory. We
cannot build railroad. We cannot use any
other means of transportation besides cars.
As far as railroad is concerned, there is
only 426 km of railroad all over the country.
Kyrgyzstan from the point of view of railway
is locked. Taking into account the history
of Kyrgyzstan, based on the doctrine of
Silk Road by our President, we see the need
in building railroad that connects China,
Kyrgyzstan and Uzbekistan. We have negotiated
with these countries and they are ready
to invest in building such railroad. This
would enable to shorten the distance between
China and Europe by 850 km. Now we are working
on confirming the technical base for the
construction. As for air transportation,
thanks to the loan taken in the amount of
46 million dollars from Japanese bank of
economic cooperation and World Bank, our
airport is in good conditions now. It meets
the international standards. We are working
with Frankfurt airport on converting Manas
airport into international cargo center.
The European companies that take cargo from
Europe to South East Asia usually fly from
Dubai and Russia. This routine takes much
time. Our cargo airport will enable them
to load 30 tons more cargo, if they will
stop by for refuel. The word Central Asia
justifies itself. If we look at Manas airport
it appears to be just in the center between
Europe and South East Asia.
As for telecommunication, the president
received 48 million dollars for development
of telecommunication system. Based on it
we have digital communication all over the
country. Now any citizen from rural area
has an access to Internet. Since we have
solved basic issues, the government is selling
51% of share of Kyrgyz Telecom.
How will Kyrgyz Telecom be offered to
investors, will it be through process of
tender or stock exchange equity sale?
This is just for information. The consulting
company has already been selected, which
will arrange this tender and 51% of the
stock will be sold to private investors.
This will all be announced in a month.
What are you expecting as a result of
this tender process?
We hope that the company, which will purchase
the package, will develop communication
in rural areas at the first place. Since
there is a lack of digital communication
even in Bishkek, so we hope we can develop
this field of communication service all
over the country. That is why the government
expects these kinds of results from the
selling of 51% of share. This is all about
infrastructure. In all directions we are
doing good. The president pays much attention
to it and we get considerable aid from government.
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Going back
to a couple of interesting points we touched,
one of which is air transportation. Kyrgyzstan
is located in land lock position, as you have
pointed out, and the minister of external
trade also pointed out, this is something
deterring development of many sectors not
only industrial but also tourism sector. In
addition to this there are not many airlines
flying through Bishkek. What is the ministry
doing to attract more airlines to fly through
to and from Bishkek ?
First of all, the President declared the
airspace of the country as a free space
for any air company. The space also can
be used for transit. In addition we are
starting the rehabilitation of the Osh airport
as a reserve airport. We are looking for
sponsors to finance the reconstruction of
the airport in the village of Tamchy, in
Issyk-Kul. If we put this airport into work
we would attract more tourists to Issyk-Kul.
Besides, our country is ready to provide
to any other air company to use the flag
of the republic. For example Dubai airport,
gives permissions only to three republics
of CIS countries Ukraine, Russia and Kyrgyzstan
to register and to fly using our flag to
other countries. First of all they should
register in the appropriate department of
the government. I should say that the local
department of aviation is very strict as
far as air rules and safety are concerned.
They should meet the international standards
and standards of CAO international organization.
Finally, I think that the Coalition forces
have made free advertisement for our airport
Manas. Now the whole world knows that there
is airport called Manas, and country Kyrgyzstan.
Thanks to it Manas is being used as a cargo
center for Frankfurt airport's cargo planes
for refuel. Another thing is that an air
corridor is already open between Europe
and China. It is the shortest way to China
through Kyrgyzstan. The advantage of the
corridor is that fewer countries are involved
in giving permission to fly through. This
is very beneficial. In addition, in 2008
Olympic games will take place in China.
The corridor will offer very convenient
way to fly from Europe to China for sportsmen.
In connection with fight against terrorism,
number of flights to Afghanistan has increased
by 20 times in half year. Because of security
they are flying through Kyrgyzstan.
You are not just minister of transport,
but also vice prime minister. The government
has prioritized the attraction of foreign
investment to the country. How is this task
going so far? Do you think there is enough
being done? Do you expect foreign investors
to start developing interest in Kyrgyzstan
as legislation is improved?
First of all, in order to attract foreign
investors we need political stability in
the country. As for investment in our branch,
a British company in cooperation with local
company created air Cooperation Company
called "Kyrgyz Air". This company
invested 2 million dollars to buy 2 airplanes
"Boing" and for circulation. This
powerful air company will fly through airlines
that exist.
As for railroad, we are looking for investors
to build a railroad, which will connect
China with Kyrgyzstan and Uzbekistan. Active
work is being done to attract investors
from Germany, Pakistan and Iran. There are
number of interested investors since the
road maybe very effective.
As for car roads there is a big desire of
Kazakh businessmen. They are interested
to go by the shortest way to Torugart, China.
They proposed to build a road Almaty-Uzun
-Agach- Bystrovka-Torugart. This will be
paid road. We are planning to build Almaty-Cholpon-
Ata (Issyk-Kul) road. The length approximately
will be 110 km. If to come to Issyk-Kul
through Bishkek then it is 500 km. There
are number of Kazakh businessmen that want
to invest money directly to the building
of the road. We can say that the interest
on the part of investment is big to building
roads. I can say that I see potential businessmen
from West, European countries and Korea
in building roads. In addition to them we
have many businessmen from Alma-Ata. I think
that the investment climate leaves much
to be desired. Especially the free economic
zones in Bishkek worked intensively and
had perspectives. However, our parliamentarians
made amendments that restricted free economic
zones and this decreased somehow the investment
growth. The government is now working on
improving the law on investment and free
economic zones in Bishkek.
What message would you send to foreign
investors about potential opportunities
in Kyrgyzstan, one of the most progressive
countries in the region in implementing
market reforms in Central Asia.
The policy of government follows the recommendations
of the president that is to create the most
favorable conditions for any investor and
to lift all restrictions by law enforcement
boards and official departments.
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V.I.P. INTERVIEWS
