THE KYRGYZ REPUBLIC

2

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES

Content

INTRODUCTION• Economy Minister Notes Government’s Commitment to Openness 4• EU Ambassador Highlights Progress Being Made 5• Ambitious Development Programme to Drive Economy Forward 6• New Embassy Promoting Stronger Ties with the UK 8• Ambassador Highlights Strong Ties between the Russian Federation and Kyrgyzstan 9• Turkey Committed to Long-Term Partnership 10

GOVERNMENT • Democratic Government Based on Constitution 12

BUSINESS & INVESTMENT OPPORTUNITIES• Leading Business Association Working to Upgrade Investment Climate 15• Chamber Launching Innovative Private-Sector Projects 16• Enhancing Attractions for Foreign Investors 18• Kalikova and Associates 19• AmCham Helping to Boost Kyrgyzstan’s Investment Appeal 20

INTERNATIONAL FINANCIAL INSTITUTIONS• World Bank Celebrates 20th Anniversary of the Partnership with the Kyrgyz Republic 22• International Partners Confident about the Kyrgyz Republic’s Future 23• EBRD Bullish on Kyrgyzstan 24• USAID Long-Term Partner for Kyrgyz Private Sector 25

FINANCE• Ministry of Finance Overseeing Ambitious Reform Measures 27• Commercial bank KYRGYZSTAN 28

• National Bank Chairman Reports Impressive Banking-Sector Growth Rates 29

• Mol Bulak Finance 30

• Financial Sector Performing Well 31

• Baitushum and Partners 32

ENERGY & MINING• Energy Ministry Focussing on Hydropower, Transmission Network 34

The Kyrgyz Republic

Regional Director: Mihai Petrut – International Business Analyst: Ulrike Bruening – Project Coordinators: Maarten Pennings, Leigha Proctor – International Manager: Aukje Oostendorp – Editorial: Emily Emerson-Le Moing – Head of Production: Vicky Kox – Production Coordinator: Stefanie Mentens – Design: Martine Vandervoort, Dirk Van Bun, Walter Vranken, Johny Verstegen – Special thanks to our interpreter: Aida Tulelieva

The European Times PO Box 685 66 - London EC1P 1XP - United KingdomPhone: +44 (0)208 371 2356 - Fax: +44 (0)208 371 2410info@european-times.com - www.european-times.com

The European Times is a trading name of Crystal Mediacorp Ltd

This guide is protected by copyright. All rights reserved. This publication, or any part thereof, may not be reproduced, stored electronically or transmitted in any form, without the prior written permission of European Times. Every effort has been made to ensure information contained in this publication is correct and up-to-date. The authors and publisher accept no responsibility for any errors it may contain, or for any loss, fi nancial or otherwise, sustained by any person using this publication.

• Centerra Gold Inc. 35

• Mining and Energy Driving Kyrgyz Economy 36• Kyrgyz Komur 37• Harnessing Vast Energy Resources to Power the Future 38• National Electrical Grid of Kyrgyzstan 39

COMMUNICATION & TRANSPORT• Massive Infrastructure Projects Creating New International Links 41• Meeting the Challenge of Transport-Infrastructure Development 43• Rapidly Developing ICT Sector Attracting Global Investors 44• Kyrgyz Telecom 45• Continent Print Company 46• #One Magazine 47

AGRICULTURE• High-Potential Agriculture Sector Focussing on Quality 49• Agriculture Crucial for Boosting GDP and Fighting Poverty 51• Global Partners Helping Agriculture Sector Achieve its Potential 52

HEALTH & EDUCATION• Ambitious Healthcare Reforms Creating New Investment Opportunities 54• Bringing Healthcare up to International Standards 56• Significant Progress in Upgrading Education System 57• Education at a Crossroads 58

TOURISM & CULTURE• Exceptional Opportunities for Tourism Investment 60• Golden Dragon Hotel 61• Park Hotel 62• Unspoiled Nature and Rich Cultural Heritage 64• Hyatt Regency Bishkek 65• Tasty Dishes Made from Local Ingredients 66• Gentasvale Restaurant 67• Kyrgyz Konyagy 68• Diverse, Unique Cultural Attractions 69

• EVI-Autocenter 70

• Top 10 for Visitors 71

3

Content

INTRODUCTION• Economy Minister Notes Government’s Commitment to Openness 4• EU Ambassador Highlights Progress Being Made 5• Ambitious Development Programme to Drive Economy Forward 6• New Embassy Promoting Stronger Ties with the UK 8• Ambassador Highlights Strong Ties between the Russian Federation and Kyrgyzstan 9• Turkey Committed to Long-Term Partnership 10

GOVERNMENT • Democratic Government Based on Constitution 12

BUSINESS & INVESTMENT OPPORTUNITIES• Leading Business Association Working to Upgrade Investment Climate 15• Chamber Launching Innovative Private-Sector Projects 16• Enhancing Attractions for Foreign Investors 18• Kalikova and Associates 19• AmCham Helping to Boost Kyrgyzstan’s Investment Appeal 20

INTERNATIONAL FINANCIAL INSTITUTIONS• World Bank Celebrates 20th Anniversary of the Partnership with the Kyrgyz Republic 22• International Partners Confident about the Kyrgyz Republic’s Future 23• EBRD Bullish on Kyrgyzstan 24• USAID Long-Term Partner for Kyrgyz Private Sector 25

FINANCE• Ministry of Finance Overseeing Ambitious Reform Measures 27• Commercial bank KYRGYZSTAN 28

• National Bank Chairman Reports Impressive Banking-Sector Growth Rates 29

• Mol Bulak Finance 30

• Financial Sector Performing Well 31

• Baitushum and Partners 32

ENERGY & MINING• Energy Ministry Focussing on Hydropower, Transmission Network 34

The Kyrgyz Republic

3

• Energy Ministry Focussing on Hydropower, Transmission Network 34

Regional Director: Mihai Petrut – International Business Analyst: Ulrike Bruening – Project Coordinators: Maarten Pennings, Leigha Proctor – International Manager: Aukje Oostendorp – Editorial: Emily Emerson-Le Moing – Head of Production: Vicky Kox – Production Coordinator: Stefanie Mentens – Design: Martine Vandervoort, Dirk Van Bun, Walter Vranken, Johny Verstegen – Special thanks to our interpreter: Aida Tulelieva

The European Times PO Box 685 66 - London EC1P 1XP - United KingdomPhone: +44 (0)208 371 2356 - Fax: +44 (0)208 371 2410info@european-times.com - www.european-times.com

The European Times is a trading name of Crystal Mediacorp Ltd

This guide is protected by copyright. All rights reserved. This publication, or any part thereof, may not be reproduced, stored electronically or transmitted in any form, without the prior written permission of European Times. Every effort has been made to ensure information contained in this publication is correct and up-to-date. The authors and publisher accept no responsibility for any errors it may contain, or for any loss, fi nancial or otherwise, sustained by any person using this publication.

• Centerra Gold Inc. 35

• Mining and Energy Driving Kyrgyz Economy 36• Kyrgyz Komur 37• Harnessing Vast Energy Resources to Power the Future 38• National Electrical Grid of Kyrgyzstan 39

COMMUNICATION & TRANSPORT• Massive Infrastructure Projects Creating New International Links 41• Meeting the Challenge of Transport-Infrastructure Development 43• Rapidly Developing ICT Sector Attracting Global Investors 44• Kyrgyz Telecom 45• Continent Print Company 46• #One Magazine 47

AGRICULTURE• High-Potential Agriculture Sector Focussing on Quality 49• Agriculture Crucial for Boosting GDP and Fighting Poverty 51• Global Partners Helping Agriculture Sector Achieve its Potential 52

HEALTH & EDUCATION• Ambitious Healthcare Reforms Creating New Investment Opportunities 54• Bringing Healthcare up to International Standards 56• Significant Progress in Upgrading Education System 57• Education at a Crossroads 58

TOURISM & CULTURE• Exceptional Opportunities for Tourism Investment 60• Golden Dragon Hotel 61• Park Hotel 62• Unspoiled Nature and Rich Cultural Heritage 64• Hyatt Regency Bishkek 65• Tasty Dishes Made from Local Ingredients 66• Gentasvale Restaurant 67• Kyrgyz Konyagy 68• Diverse, Unique Cultural Attractions 69

• EVI-Autocenter 70

• Top 10 for Visitors 71

4

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

4

Economy Minister Notes Government’s Commitment to Openness

Temir Sariev, Minister of Economy and Anti-Monopoly

Policy, discusses his country’s goals.

European Times: What are your ministry’s responsibilities?

Temir Sariev: This ministry focuses on maintain-ing the country’s macroeconomic stability, but we are involved in many other areas. For example, we con-tribute to formulating the government’s fiscal and tariff policies, we help determine public-sector invest-ments, we control trade policies and related issues, we determine policies about the use of natural resources, and we are responsible for technical regulations and standardisation, among many other matters. We also have a whole department devoted to issues related to competition and anti-monopoly efforts, we have a one-stop shop for imports and exports, and we oversee the government’s privatisation programme.

European Times: What are some of your current projects?

Temir Sariev: One of our most important projects is to develop the mining sector, which has attracted strong interest from international investors. Getting mining products to market requires effi cient infrastructure, so we are also concentrating on infrastructure development, both within Kyrgyzstan and between our country and others in the region. Kyrgyzstan has great potential to become a regional trade hub.

European Times: What other economic sectors are you focussing on at the moment?

Temir Sariev: Developing the country’s hydropower resources is another top priority. We are only achieving around 10% of our potential renewable-energy production. Kyrgyzstan is also participating in the regional CASA-1000 energy project, and we are building new transmission lines to Kazakhstan and China and exploring a project to build a regional gas pipeline.

Temir Sariev, Minister of Economy and Anti-Monopoly Policy

European Times: Why should European companies and investors get involved in Kyrgyzstan?

Temir Sariev: Kyrgyzstan is the most open country in Central Asia. We know that openness and transparency are the keys to our long-term success. Kyrgyzstan has a history of innovation: we were the fi rst Central Asian country to declare independence, introduce a national currency, privatise state-owned enterprises, create a parliament, and enter the World Trade Organisation. Today, Kyrgyzstan has a visa-free regime, no censorship, a Wi-Fi network that covers 85% of the country, stringent anti-corruption policies, and a very strong private sector. This year the country attracted €638.7 million (US$823 million) in donor funding and investments. We welcome more investors from Europe, espe-cially since EU investors will bring in not only new technolo-gies and methods but also high standards. I want European investors to know that Kyrgyzstan has tremendous invest-ment potential and is committed to democracy, openness and stability.

THE EUROPEAN TIMES

EU Ambassador Highlights Progress Being MadeChantal Hebberecht, the fi rst EU Ambassador to Kyrgyzstan,

discusses her delegation’s activities.

European Times: How have relations between the EU and Kyrgyzstan evolved since the partnership agreement between them went into force in 1999?

Chantal Hebberecht: Our delegation is engaged in dialogue with Kyrgyzstan’s leaders on a wide range of issues, including human rights, rule of law, social services and reforms, education, the business climate and trade. Through its partnership agreement, the EU actively promotes European values, aims to boost trade between the EU and Kyrgyzstan, and supports the country’s economic development.

“Our main priority here is to support democratic reforms and to make sure

economic and social development moves forward.”

European Times: How would you rate the coop-eration between the EU and Kyrgyzstan?

Chantal Hebberecht: We have experienced an unprec-edented level of openness and frankness from our Kyrgyz government partners. We have also found a very high level of civil participation and transparency in the broad public debate. Our activities extend beyond cooperation with the government. For the EU it is very important to combine a bottom-up approach with a top-down approach.

European Times: What are some of the EU’s projects here?

Chantal Hebberecht: We are planning to launch two major projects in early 2013, one a rule-of-law initiative budgeted at €13.5 million and the other a €20 million education programme. We do not just provide fi nancing, however. Our main priority here is to support democratic reforms and to make sure economic and social development moves forward.

European Times: What are some of Kyrgyzstan’s attractions for European investors?

Chantal Hebberecht: Kyrgyzstan is the only Central Asian country with such a developed democratic process. The country has a multi-party parliamentary system and a democratically elected coalition government which is making efforts to fi ght corruption. In addition, civil society and the private sector are able to play an active role in the democratic process and in the economy. The Kyrgyz government is taking measures to establish a favourable investment climate, for example by trying to gradually reduce the number of required licenses for companies. Trade between Kyrgyzstan and the EU grew by 40% in 2011 compared to 2010.

European Times: What sectors have particularly strong investment potential?

Chantal Hebberecht: Mining is of course important but the tourism sector also has great prospects, and the new regu-lations allowing visa-free entry for travellers from dozens of countries is a big boost for the tourism industry. I invite EU travellers to come to Kyrgyzstan and see how beautiful it is, how warm and welcoming the Kyrgyz people are, and what a promising future this country has.

Chantal Hebberecht, EU Ambassador to Kyrgyzstan

5

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Economy Minister Notes Government’s Commitment to Openness

Temir Sariev, Minister of Economy and Anti-Monopoly

Policy, discusses his country’s goals.

European Times: What are your ministry’s responsibilities?

Temir Sariev: This ministry focuses on maintain-ing the country’s macroeconomic stability, but we are involved in many other areas. For example, we con-tribute to formulating the government’s fiscal and tariff policies, we help determine public-sector invest-ments, we control trade policies and related issues, we determine policies about the use of natural resources, and we are responsible for technical regulations and standardisation, among many other matters. We also have a whole department devoted to issues related to competition and anti-monopoly efforts, we have a one-stop shop for imports and exports, and we oversee the government’s privatisation programme.

European Times: What are some of your current projects?

Temir Sariev: One of our most important projects is to develop the mining sector, which has attracted strong interest from international investors. Getting mining products to market requires effi cient infrastructure, so we are also concentrating on infrastructure development, both within Kyrgyzstan and between our country and others in the region. Kyrgyzstan has great potential to become a regional trade hub.

European Times: What other economic sectors are you focussing on at the moment?

Temir Sariev: Developing the country’s hydropower resources is another top priority. We are only achieving around 10% of our potential renewable-energy production. Kyrgyzstan is also participating in the regional CASA-1000 energy project, and we are building new transmission lines to Kazakhstan and China and exploring a project to build a regional gas pipeline.

Temir Sariev, Minister of Economy and Anti-Monopoly Policy

European Times: Why should European companies and investors get involved in Kyrgyzstan?

Temir Sariev: Kyrgyzstan is the most open country in Central Asia. We know that openness and transparency are the keys to our long-term success. Kyrgyzstan has a history of innovation: we were the fi rst Central Asian country to declare independence, introduce a national currency, privatise state-owned enterprises, create a parliament, and enter the World Trade Organisation. Today, Kyrgyzstan has a visa-free regime, no censorship, a Wi-Fi network that covers 85% of the country, stringent anti-corruption policies, and a very strong private sector. This year the country attracted €638.7 million (US$823 million) in donor funding and investments. We welcome more investors from Europe, espe-cially since EU investors will bring in not only new technolo-gies and methods but also high standards. I want European investors to know that Kyrgyzstan has tremendous invest-ment potential and is committed to democracy, openness and stability.

THE EUROPEAN TIMES

EU Ambassador Highlights Progress Being MadeChantal Hebberecht, the fi rst EU Ambassador to Kyrgyzstan,

discusses her delegation’s activities.

European Times: How have relations between the EU and Kyrgyzstan evolved since the partnership agreement between them went into force in 1999?

Chantal Hebberecht: Our delegation is engaged in dialogue with Kyrgyzstan’s leaders on a wide range of issues, including human rights, rule of law, social services and reforms, education, the business climate and trade. Through its partnership agreement, the EU actively promotes European values, aims to boost trade between the EU and Kyrgyzstan, and supports the country’s economic development.

“Our main priority here is to support democratic reforms and to make sure

economic and social development moves forward.”

European Times: How would you rate the coop-eration between the EU and Kyrgyzstan?

Chantal Hebberecht: We have experienced an unprec-edented level of openness and frankness from our Kyrgyz government partners. We have also found a very high level of civil participation and transparency in the broad public debate. Our activities extend beyond cooperation with the government. For the EU it is very important to combine a bottom-up approach with a top-down approach.

European Times: What are some of the EU’s projects here?

Chantal Hebberecht: We are planning to launch two major projects in early 2013, one a rule-of-law initiative budgeted at €13.5 million and the other a €20 million education programme. We do not just provide fi nancing, however. Our main priority here is to support democratic reforms and to make sure economic and social development moves forward.

European Times: What are some of Kyrgyzstan’s attractions for European investors?

Chantal Hebberecht: Kyrgyzstan is the only Central Asian country with such a developed democratic process. The country has a multi-party parliamentary system and a democratically elected coalition government which is making efforts to fi ght corruption. In addition, civil society and the private sector are able to play an active role in the democratic process and in the economy. The Kyrgyz government is taking measures to establish a favourable investment climate, for example by trying to gradually reduce the number of required licenses for companies. Trade between Kyrgyzstan and the EU grew by 40% in 2011 compared to 2010.

European Times: What sectors have particularly strong investment potential?

Chantal Hebberecht: Mining is of course important but the tourism sector also has great prospects, and the new regu-lations allowing visa-free entry for travellers from dozens of countries is a big boost for the tourism industry. I invite EU travellers to come to Kyrgyzstan and see how beautiful it is, how warm and welcoming the Kyrgyz people are, and what a promising future this country has.

Chantal Hebberecht, EU Ambassador to Kyrgyzstan

Introduction

6

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

6

Ambitious Development Programme to Drive Economy ForwardA Central Asian country with great natural

beauty and a rich cultural heritage, the

Kyrgyz Republic was formally annexed

to Russia in 1876, became a Soviet

republic in 1936 and achieved independ-

ence in 1991. After some turbulent years

as it made the diffi cult transition to a

free-market economy, the Kyrgyz Republic

has achieved political and economic

stability. It is regarded as a pioneer in

instituting parliamentary democracy in

otherwise authoritarian Central Asia, and

in 2011, the country’s current president,

Almazbek Atambayev, took offi ce in an

historic peaceful transition of power. He

vows to promote an end to the internal

confl ict that has hampered the Kyrgyz

Republic’s development in the past.

In early December 2012, the Kyrgyz government unveiled a €5.31 billion plan to revitalise the economy over the next fi ve years with help from Russian, Chinese and Western investment and aid. The new investment plan includes 15 energy projects with a cumula-tive investment need of €4.17 billion, as well as transport and communi-cation projects worth nearly €683.1 million and agriculture developments requiring more than €303 million. In announcing the new plan, President Atambayev said, “The main task for the next fi ve years is to exist as a state in our own right and to lay the founda-tions for the successful growth of the Kyrgyz Republic.”

Right fundamentals for sustained growth

The Kyrgyz Republic already has many of the fundamentals for sustained economic development. Along with its strategic location along the ancient Silk Road in the heart of a high-potential region, the Kyrgyz Republic has sig-nifi cant natural resources which include abundant hydropower; large deposits of gold and rare earth metals; locally exploitable coal, oil, and natural gas; deposits of nepheline, mercury, bismuth, lead and zinc; agricultural land; and the tourism potential of unspoiled natural beauty.

Skilled labour, a regulatory environ-ment which encourages foreign direct investment, and strong support from global partners and international funding organisations are other plus factors. Known for its commitment to an open economy, the Kyrgyz Republic was the fi rst Commonwealth of Inde-pendent States country to be accepted into the World Trade Organisation, and many Kyrgyz government-owned enterprises have been privatised. The Kyrgyz Republic has created the most liberal conditions in the CIS for foreign trade as well as the lowest taxes.

Reforms upgrading business climate

The government continues its reform programmes designed to upgrade the business environment and has stream-lined the processes of starting a business and obtaining construction permits as well as enhanced protection of investors. As a result, the Kyrgyz Republic is now ranked among the top 50 countries in the world in the World Bank’s latest ‘Ease of Doing Business’ report.

Agriculture currently dominates the Kyrgyz economy. Cotton, tobacco, wool, and meat are the country’s main agricultural products, although only tobacco and cotton are exported in sig-nifi cant quantities. The main industrial

Bishkek White House

THE EUROPEAN TIMES

products are gold, small machinery, textiles, processed foods, cement, shoes, timber, refrigerators, furniture, electric motors, and rare earth metals. The Kyrgyz Republic’s industrial exports include gold (which accounts for around half of the country’s total industrial production), mercury, uranium, natural gas, hydropower, cotton, wool, garments, shoes, meat, tobacco and machinery.

The Kyrgyz Republic’s leading export markets are Uzbekistan (accounting for 25.4% of total exports in 2011), Russia (22.2%), Kazakhstan (20.1%), China (7.8%), the UAE (5.5%), Afghanistan (5%), and Turkey (4.2%). The Kyrgyz

Bishkek

Bishkek by night

Republic’s main imports are oil and gas, machinery and equipment, chemicals and foodstuffs. The country’s main sources of imports in 2011 were China (59.8%), Russia (13.9%), and Kazakh-stan (5.2%).

Return to GDP growth

The Kyrgyz Republic’s GDP grew by about 8% annually in 2007-2008, partly due to higher gold prices inter-nationally, but slowed to 2.9% in 2009. After a contraction to .4% GDP growth in 2010 related to political stability, the economy grew by 5.7% in 2011. Also that year, the government managed to

reduce the budget defi cit to just over 5% of GDP.

GDP declined during the fi rst half of 2012, largely because of a drop in gold production at the Kumtor mine. Nev-ertheless, the non-gold industrial sector grew by 8.2% during the fi rst half of the year while the agriculture sector grew by 1.2% and the services sector by 7.5%. In addition, the construction sector achieved a remarkable 20% growth over this period. Infl ation remained at .9% in the fi rst half of 2012 thanks to lower food and fuel prices, but the trade defi cit widened in the fi rst quarter of the year, with imports growing by 37% and exports declining by 11%.

The Kyrgyz Republic’s gold production is expected to recover in 2013, support-ing GDP growth of around 5.5% for 2013 as well as a reduced trade defi cit, according to a recent study by Asian Development Outlook. The study also predicts that the Kyrgyz Republic’s current account defi cit of 8.3% of GDP should drop to around 6.8% in 2013. To keep the country’s economic devel-opment on track, the Kyrgyz Repub-lic’s government aims to continue to fi ght corruption, restructure domestic industry, improve the business climate and attract more foreign aid and investment.

7

THE EUROPEAN TIMES

Introduction

THE EUROPEAN TIMES

Ambitious Development Programme to Drive Economy ForwardA Central Asian country with great natural

beauty and a rich cultural heritage, the

Kyrgyz Republic was formally annexed

to Russia in 1876, became a Soviet

republic in 1936 and achieved independ-

ence in 1991. After some turbulent years

as it made the diffi cult transition to a

free-market economy, the Kyrgyz Republic

has achieved political and economic

stability. It is regarded as a pioneer in

instituting parliamentary democracy in

otherwise authoritarian Central Asia, and

in 2011, the country’s current president,

Almazbek Atambayev, took offi ce in an

historic peaceful transition of power. He

vows to promote an end to the internal

confl ict that has hampered the Kyrgyz

Republic’s development in the past.

In early December 2012, the Kyrgyz government unveiled a €5.31 billion plan to revitalise the economy over the next fi ve years with help from Russian, Chinese and Western investment and aid. The new investment plan includes 15 energy projects with a cumula-tive investment need of €4.17 billion, as well as transport and communi-cation projects worth nearly €683.1 million and agriculture developments requiring more than €303 million. In announcing the new plan, President Atambayev said, “The main task for the next fi ve years is to exist as a state in our own right and to lay the founda-tions for the successful growth of the Kyrgyz Republic.”

Right fundamentals for sustained growth

The Kyrgyz Republic already has many of the fundamentals for sustained economic development. Along with its strategic location along the ancient Silk Road in the heart of a high-potential region, the Kyrgyz Republic has sig-nifi cant natural resources which include abundant hydropower; large deposits of gold and rare earth metals; locally exploitable coal, oil, and natural gas; deposits of nepheline, mercury, bismuth, lead and zinc; agricultural land; and the tourism potential of unspoiled natural beauty.

Skilled labour, a regulatory environ-ment which encourages foreign direct investment, and strong support from global partners and international funding organisations are other plus factors. Known for its commitment to an open economy, the Kyrgyz Republic was the fi rst Commonwealth of Inde-pendent States country to be accepted into the World Trade Organisation, and many Kyrgyz government-owned enterprises have been privatised. The Kyrgyz Republic has created the most liberal conditions in the CIS for foreign trade as well as the lowest taxes.

Reforms upgrading business climate

The government continues its reform programmes designed to upgrade the business environment and has stream-lined the processes of starting a business and obtaining construction permits as well as enhanced protection of investors. As a result, the Kyrgyz Republic is now ranked among the top 50 countries in the world in the World Bank’s latest ‘Ease of Doing Business’ report.

Agriculture currently dominates the Kyrgyz economy. Cotton, tobacco, wool, and meat are the country’s main agricultural products, although only tobacco and cotton are exported in sig-nifi cant quantities. The main industrial

Bishkek White House

THE EUROPEAN TIMES

products are gold, small machinery, textiles, processed foods, cement, shoes, timber, refrigerators, furniture, electric motors, and rare earth metals. The Kyrgyz Republic’s industrial exports include gold (which accounts for around half of the country’s total industrial production), mercury, uranium, natural gas, hydropower, cotton, wool, garments, shoes, meat, tobacco and machinery.

The Kyrgyz Republic’s leading export markets are Uzbekistan (accounting for 25.4% of total exports in 2011), Russia (22.2%), Kazakhstan (20.1%), China (7.8%), the UAE (5.5%), Afghanistan (5%), and Turkey (4.2%). The Kyrgyz

Bishkek

Bishkek by night

Republic’s main imports are oil and gas, machinery and equipment, chemicals and foodstuffs. The country’s main sources of imports in 2011 were China (59.8%), Russia (13.9%), and Kazakh-stan (5.2%).

Return to GDP growth

The Kyrgyz Republic’s GDP grew by about 8% annually in 2007-2008, partly due to higher gold prices inter-nationally, but slowed to 2.9% in 2009. After a contraction to .4% GDP growth in 2010 related to political stability, the economy grew by 5.7% in 2011. Also that year, the government managed to

reduce the budget defi cit to just over 5% of GDP.

GDP declined during the fi rst half of 2012, largely because of a drop in gold production at the Kumtor mine. Nev-ertheless, the non-gold industrial sector grew by 8.2% during the fi rst half of the year while the agriculture sector grew by 1.2% and the services sector by 7.5%. In addition, the construction sector achieved a remarkable 20% growth over this period. Infl ation remained at .9% in the fi rst half of 2012 thanks to lower food and fuel prices, but the trade defi cit widened in the fi rst quarter of the year, with imports growing by 37% and exports declining by 11%.

The Kyrgyz Republic’s gold production is expected to recover in 2013, support-ing GDP growth of around 5.5% for 2013 as well as a reduced trade defi cit, according to a recent study by Asian Development Outlook. The study also predicts that the Kyrgyz Republic’s current account defi cit of 8.3% of GDP should drop to around 6.8% in 2013. To keep the country’s economic devel-opment on track, the Kyrgyz Repub-lic’s government aims to continue to fi ght corruption, restructure domestic industry, improve the business climate and attract more foreign aid and investment.

8

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

8

New Embassy Promoting Stronger Ties with the UKJudith Farnworth, UK Ambassador to Kyrgyzstan, discusses the

Embassy’s commitment to supporting Kyrgyzstan’s development.

European Times: What is the focus of the UK Embassy’s mission in Kyrgyzstan?

Judith Farnworth: The UK decided to open the embassy here last year as part of a broader review of our global presence. The UK’s key foreign policy pri-orities are: values, security, prosperity and consular responsibility. All of them resonate in Kyrgyzstan to a greater or lesser extent. We are keen to support efforts to embed the values of democracy, human rights and the rule of law here; and believe that stability in the Kyrgyz Republic will enhance the security of the wider region. We are funding several projects in these areas. We don’t have a Commercial Section in this Embassy but we are exploring opportunities for promoting business ties with Kyrgyzstan. Our consular team in Almaty supports the local British community.

European Times: What kind of relationship do you have with the Kyrgyz government?

Judith Farnworth: We have been made very welcome. The Ministry of Foreign Affairs is our key partner, but we also work closely with the Ministry of Defence on security issues, and the First Deputy Prime Minister and Minister of Economy on commercial opportunities, for example, and we’ve been discussing judicial reform with the Justice Ministry. We are open to working with all the ministries, in fact.

European Times: How would you describe the business climate?

Judith Farnworth: There are opportunities in mining, infrastructure, tourism and agriculture, to name just a few. We welcome efforts to date to liberalise the market and are encouraged that the new Government Program is focussed on completing the process. We are interested in plans for a one-stop shop for business. The most obvious message for the Kyrgyz authorities is that the best advert for future investors into any country is the success of existing business. A transparent business envi-

Judith Farnworth, UK Ambassador to Kyrgyzstan

ronment, level playing fi eld, clear regulatory framework, simplifi ed procedures, predictability of tax arrangements, enforceability of contracts and intolerance of corruption are all essential.

European Times: Do you plan any trade missions?

Judith Farnworth: We have commissioned a British consultant to produce a report on potential business opportunities and hope to follow up with a trade mission here in 2013. We are also happy to share UK experi-ence with Kyrgyz policy-makers to save them having to reinvent the wheel.

European Times: What is your personal message to potential investors?

Judith Farnworth: Kyrgyzstan has a great deal to offer as a tourism destination plus some areas of interest-ing business potential. Kyrgyzstan is a beautiful place. I would encourage anyone to visit. They will be pleasantly surprised!

THE EUROPEAN TIMES

Ambassador Highlights Strong Ties between the Russian Federation and KyrgyzstanAndrei Krutko, the Russian Federation’s

Ambassador in Kyrgyzstan, discusses

the close connections between the two

countries.

European Times: How would you describe the relationship between the Russian Federa-tion and Kyrgyzstan?

Andrei Krutko: The Kyrgyz Republic is one of the Russian Federation’s closest allies. The two countries are members of the Col-lective Security Treaty Organis-ation as well as members of the Community of Independent States and of the Eurasian Economic Community. Moreover, the Russian Federation and Kyrgyzstan share a long history of friendship and there are indeed a lot of cultural similari-ties between our people. In other words, the two states are really close to each other in terms of well-established political, humanitarian, cultural, military and economic ties.

European Times: What are some current projects in Kyr-gyzstan which the Russian Federation is supporting?

Andrei Krutko: Just about three weeks after my term as an ambassa-dor here began, President Vladimir Putin visited Kyrgyzstan and the two governments achieved very far-reaching agreements concerning hydro-energetics development in this country. One of the agreements is for

Andrei Krutko, the Russian Federation’s Ambassador in Kyrgyzstan

the construction of the Kambarata-1 hydropower plant and the other is for the construction of four hydropower plants in the Upper Naryn river region.

“Russian investors are aware of Kyrgyzstan’s great potential. Political conditions

here are more stable now, taxes are relatively low, and qualifi ed labour is available

at low cost.”These fi ve hydropower plants are to boost Kyrgyzstan’s electricity produc-tion by around 30%. Some neighbour-ing countries have expressed concerns that the construction of these plants

could result in diminished water supplies for them, and we are now trying to assist Kyrgyzstan in explain-ing that these fears are not justifi ed. For example, the construction of the Kambarata-1 plant actually means that less water will be needed for operating the Toktogul hydropower station, so ultimately more water from the reservoir of that plant will be available for the Fergana Valley in spring and summer. It should also be noted that these plants are of vital importance for Kyrgyzstan, especially in winter time for heating, since the major part of the country’s energy supply is electricity.

European Times: Why are Russian investors entering the Kyrgyz market?

Andrei Krutko: Russian investors are aware of Kyrgyzstan’s great potential. Political conditions here are more stable now, taxes are relatively low, and qualifi ed labour is available at low cost. The system of professional and voca-tional education is still intact, so young people can be adequately educated. Of course there are also challenges here. These include a need for more investment in local production activi-ties so that Kyrgyzstan would be able to achieve its goal of joining the Eurasian Customs Union. Investors anywhere need to know for sure that their interests are to be protected, and therefore President A. Atambayev is taking the right steps to guarantee their protection.

In my opinion Kyrgyzstan today is truly a land of opportunity.

9

THE EUROPEAN TIMES

Introduction

THE EUROPEAN TIMES

New Embassy Promoting Stronger Ties with the UKJudith Farnworth, UK Ambassador to Kyrgyzstan, discusses the

Embassy’s commitment to supporting Kyrgyzstan’s development.

European Times: What is the focus of the UK Embassy’s mission in Kyrgyzstan?

Judith Farnworth: The UK decided to open the embassy here last year as part of a broader review of our global presence. The UK’s key foreign policy pri-orities are: values, security, prosperity and consular responsibility. All of them resonate in Kyrgyzstan to a greater or lesser extent. We are keen to support efforts to embed the values of democracy, human rights and the rule of law here; and believe that stability in the Kyrgyz Republic will enhance the security of the wider region. We are funding several projects in these areas. We don’t have a Commercial Section in this Embassy but we are exploring opportunities for promoting business ties with Kyrgyzstan. Our consular team in Almaty supports the local British community.

European Times: What kind of relationship do you have with the Kyrgyz government?

Judith Farnworth: We have been made very welcome. The Ministry of Foreign Affairs is our key partner, but we also work closely with the Ministry of Defence on security issues, and the First Deputy Prime Minister and Minister of Economy on commercial opportunities, for example, and we’ve been discussing judicial reform with the Justice Ministry. We are open to working with all the ministries, in fact.

European Times: How would you describe the business climate?

Judith Farnworth: There are opportunities in mining, infrastructure, tourism and agriculture, to name just a few. We welcome efforts to date to liberalise the market and are encouraged that the new Government Program is focussed on completing the process. We are interested in plans for a one-stop shop for business. The most obvious message for the Kyrgyz authorities is that the best advert for future investors into any country is the success of existing business. A transparent business envi-

Judith Farnworth, UK Ambassador to Kyrgyzstan

ronment, level playing fi eld, clear regulatory framework, simplifi ed procedures, predictability of tax arrangements, enforceability of contracts and intolerance of corruption are all essential.

European Times: Do you plan any trade missions?

Judith Farnworth: We have commissioned a British consultant to produce a report on potential business opportunities and hope to follow up with a trade mission here in 2013. We are also happy to share UK experi-ence with Kyrgyz policy-makers to save them having to reinvent the wheel.

European Times: What is your personal message to potential investors?

Judith Farnworth: Kyrgyzstan has a great deal to offer as a tourism destination plus some areas of interest-ing business potential. Kyrgyzstan is a beautiful place. I would encourage anyone to visit. They will be pleasantly surprised!

THE EUROPEAN TIMES

Ambassador Highlights Strong Ties between the Russian Federation and KyrgyzstanAndrei Krutko, the Russian Federation’s

Ambassador in Kyrgyzstan, discusses

the close connections between the two

countries.

European Times: How would you describe the relationship between the Russian Federa-tion and Kyrgyzstan?

Andrei Krutko: The Kyrgyz Republic is one of the Russian Federation’s closest allies. The two countries are members of the Col-lective Security Treaty Organis-ation as well as members of the Community of Independent States and of the Eurasian Economic Community. Moreover, the Russian Federation and Kyrgyzstan share a long history of friendship and there are indeed a lot of cultural similari-ties between our people. In other words, the two states are really close to each other in terms of well-established political, humanitarian, cultural, military and economic ties.

European Times: What are some current projects in Kyr-gyzstan which the Russian Federation is supporting?

Andrei Krutko: Just about three weeks after my term as an ambassa-dor here began, President Vladimir Putin visited Kyrgyzstan and the two governments achieved very far-reaching agreements concerning hydro-energetics development in this country. One of the agreements is for

Andrei Krutko, the Russian Federation’s Ambassador in Kyrgyzstan

the construction of the Kambarata-1 hydropower plant and the other is for the construction of four hydropower plants in the Upper Naryn river region.

“Russian investors are aware of Kyrgyzstan’s great potential. Political conditions

here are more stable now, taxes are relatively low, and qualifi ed labour is available

at low cost.”These fi ve hydropower plants are to boost Kyrgyzstan’s electricity produc-tion by around 30%. Some neighbour-ing countries have expressed concerns that the construction of these plants

could result in diminished water supplies for them, and we are now trying to assist Kyrgyzstan in explain-ing that these fears are not justifi ed. For example, the construction of the Kambarata-1 plant actually means that less water will be needed for operating the Toktogul hydropower station, so ultimately more water from the reservoir of that plant will be available for the Fergana Valley in spring and summer. It should also be noted that these plants are of vital importance for Kyrgyzstan, especially in winter time for heating, since the major part of the country’s energy supply is electricity.

European Times: Why are Russian investors entering the Kyrgyz market?

Andrei Krutko: Russian investors are aware of Kyrgyzstan’s great potential. Political conditions here are more stable now, taxes are relatively low, and qualifi ed labour is available at low cost. The system of professional and voca-tional education is still intact, so young people can be adequately educated. Of course there are also challenges here. These include a need for more investment in local production activi-ties so that Kyrgyzstan would be able to achieve its goal of joining the Eurasian Customs Union. Investors anywhere need to know for sure that their interests are to be protected, and therefore President A. Atambayev is taking the right steps to guarantee their protection.

In my opinion Kyrgyzstan today is truly a land of opportunity.

10

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

10

Turkey Committed to Long-Term PartnershipNejat Akçal, Turkey’s Ambassador to

Kyrgyzstan, discusses the ties between

the two countries.

European Times: How would you describe the relationship between the Kyrgyz Republic and Turkey?

Nejat Akçal: Turkey and the Kyrgyz Republic have a very strong part-nership based on historical, cultural and linguistic ties. Turkey was the fi rst country to recognise the Kyrgyz Republic’s independence in 1991 and now we are working together with Kyrgyz leaders to ensure the country’s sustainable growth. In 2012 alone, Turkey provided a credit of €76.52 million (US$100 million) to the Kyrgyz government to support public-sector investments.

Turkey also provided €4.59 million (US$6 million) in grants for fi nancing technical-support activities and for the subscribed capital of the Kyrgyz Republic’s ECO Trade and Devel-opment Bank. Also in 2012, Turkey wrote off the National Bank of the Kyrgyz Republic’s debt to Turkey’s Eximbank; this debt totalled almost €38.26 million (US$50 million). This support is in addition to two other grants, both for €7.65 million (US$10 million), which Turkey provided to support the Kyrgyz state budget. Education is one of our priorities. We support many schools and universities here in the Kyrgyz Republic and we provide scholarships so that Kyrgyz young people can study in Turkey. In Osh, the Turkish investment agency, TIKA, invested €5.74 million (US$7.5

Nejat Akçal, Turkey’s Ambassador to Kyrgyzstan

million) in building one of the best technical schools in the region. Turkey believes that development begins with the younger generation.

European Times: What economic sectors do you feel have the strongest potential in the Kyrgyz Republic?

Nejat Akçal: Agriculture, infrastruc-ture, energy, education, tourism and trade all have very strong prospects. Our credit lines include investment projects involving irrigation systems, forestry and agricultural develop-ment, and energy infrastructure. An important selling point for the Kyrgyz Republic will be its potential member-ship in the customs union involving Russia, Kazakhstan and Belarus, which will open the country up to many large markets. Since production costs here are

low, this will make the Kyrgyz Republic really attractive as a site for export-oriented companies.

European Times: What are some of the challenges?

Nejat Akçal: We value the govern-ment’s efforts to combat corruption and improve the quality of transport infrastructure. Through supporting capacity-building, international organi-sations can help the Kyrgyz government address these issues. The new govern-ment is very open and business-friendly, and investors will fi nd great oppor-tunities here. The Kyrgyz Republic is becoming a real democracy where problems can be addressed. The fact that hundreds of Turkish entrepreneurs have managed to set up profi table busi-nesses here is proof that the Kyrgyz Republic has great potential.

11

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Turkey Committed to Long-Term PartnershipNejat Akçal, Turkey’s Ambassador to

Kyrgyzstan, discusses the ties between

the two countries.

European Times: How would you describe the relationship between the Kyrgyz Republic and Turkey?

Nejat Akçal: Turkey and the Kyrgyz Republic have a very strong part-nership based on historical, cultural and linguistic ties. Turkey was the fi rst country to recognise the Kyrgyz Republic’s independence in 1991 and now we are working together with Kyrgyz leaders to ensure the country’s sustainable growth. In 2012 alone, Turkey provided a credit of €76.52 million (US$100 million) to the Kyrgyz government to support public-sector investments.

Turkey also provided €4.59 million (US$6 million) in grants for fi nancing technical-support activities and for the subscribed capital of the Kyrgyz Republic’s ECO Trade and Devel-opment Bank. Also in 2012, Turkey wrote off the National Bank of the Kyrgyz Republic’s debt to Turkey’s Eximbank; this debt totalled almost €38.26 million (US$50 million). This support is in addition to two other grants, both for €7.65 million (US$10 million), which Turkey provided to support the Kyrgyz state budget. Education is one of our priorities. We support many schools and universities here in the Kyrgyz Republic and we provide scholarships so that Kyrgyz young people can study in Turkey. In Osh, the Turkish investment agency, TIKA, invested €5.74 million (US$7.5

Nejat Akçal, Turkey’s Ambassador to Kyrgyzstan

million) in building one of the best technical schools in the region. Turkey believes that development begins with the younger generation.

European Times: What economic sectors do you feel have the strongest potential in the Kyrgyz Republic?

Nejat Akçal: Agriculture, infrastruc-ture, energy, education, tourism and trade all have very strong prospects. Our credit lines include investment projects involving irrigation systems, forestry and agricultural develop-ment, and energy infrastructure. An important selling point for the Kyrgyz Republic will be its potential member-ship in the customs union involving Russia, Kazakhstan and Belarus, which will open the country up to many large markets. Since production costs here are

low, this will make the Kyrgyz Republic really attractive as a site for export-oriented companies.

European Times: What are some of the challenges?

Nejat Akçal: We value the govern-ment’s efforts to combat corruption and improve the quality of transport infrastructure. Through supporting capacity-building, international organi-sations can help the Kyrgyz government address these issues. The new govern-ment is very open and business-friendly, and investors will fi nd great oppor-tunities here. The Kyrgyz Republic is becoming a real democracy where problems can be addressed. The fact that hundreds of Turkish entrepreneurs have managed to set up profi table busi-nesses here is proof that the Kyrgyz Republic has great potential.

Government

12

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

12

The country’s government is democratic

with separate executive, legislative and

judicial branches. The executive branch

includes a President and Chief of

State, a Prime Minister, Deputy Prime

Ministers and a cabinet of ministers.

The legislative branch, or parliament,

is the unicameral Supreme Council, or

Jogorku Kengesh, with 120 seats.

THE KYRGYZ REPUBLICTHE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

Key LeadersPresident and Chief of State

Almazbek Atambaev, elected President in December 2011, was born in 1956 in the Chui region. In 1980 he graduated from the Moscow Institute of Management. He began his career as an engineer in the Ministry of Communications and held several posts in the gov-ernment and in the private sector, including serving as Chairman of the Board of the Forum Indus-trial Group from 2004 to 2005; Chairman of the Board of Kyrgyz-avtomash Corporation from 2005 to 2006; Acting Minister of Economic Development, Industry and Trade from 2006 to 2007; Prime Minister from 2007 to 2010; First Deputy Chairman of the Provisional Gov-ernment of the Kyrgyz Republic in 2010; Member of Parliament and leader of the Social Democratic Party; and again as Prime Minister until he was elected President. He is known for his strong support of an open, modern economy for the Kyrgyz Republic.

Prime Minister and Head of Government

Jantoro Satybaldiev, who has served as Prime Minister since September 2012, was born in 1956 in the Osh region. In 1979 he graduated from the Frunze Poly-technic Institute and began his career as a road-construction engineer. He previ-ously served as Minister of Transport and Communications (from 1997 to 2000); head of the State Administration of Osh and as mayor of Osh, Member of Parliament, and as Deputy Prime Minister and CEO of State Directorate for Reconstruction and Development.

Elections

The President is elected by popular vote for a six-year term; presidential elections were last held in October 2011. The Prime Minister is nominated by the parliamen-tary party holding more than 50% of the seats; if no such party exists, the President selects the party that will form a coalition majority and government. The Cabinet of Ministers is proposed by the Prime Minister and appointed by the President; ministers in charge of defence and security are appointed solely by the President. Members of the Supreme Council are elected by popular vote to serve fi ve-year terms; the last legislative elections were held in October 2010. Supreme Court and Constitutional Court judges are appointed for 10-year terms by the Supreme Council on the recommendation of the President.

First Deputy Prime Minister

Joomart Otorbaev, who has served as First Deputy Prime Minister since September 2012, was born in 1955.

He previously served as CEO of Philips Electronics in Central Asia, as the Special Representative of the President of the Kyrgyz Republic specialising in attracting investment, as Senior Advisor to the EBRD, and as Deputy Prime Minister for Economic Development. He oversees the Ministries of Economy and Finance as well as Communications, Customs and Tax Services, among other responsibilities.

Deputy Prime Minister

Tayirbek Sarpashev, serving as a Deputy Prime Minister since September 2012, has held many private-sector posts, including Vice President of Tugolbai Ata. He coor-dinates the activities of the Ministries of Transport and Communications, Emergency Situations, and Agricul-ture and Land Reclamation as well as several state agencies.

Deputy Prime Minister

Kamila Talieva, Deputy Prime Minister since September 2012, has held posts in the education sector as well as serving as Deputy Governor of Jalal-Abad and as a Member of Par-liament. In her current role she coor-dinates the activities of the Ministries of Health, Education and Science, Youth and Employment, Culture and Tourism, and Social Development, as well as several state agencies.

Minister of Government

Nurhanbek Momunaliev, born in Jalal-Abad in 1971, previously held several

Democratic Government Based on Constitution

THE EUROPEAN TIMES

regional government posts. He also served as First Deputy Head of Provi-sional Government in 2010. He oversees government activities.

Minister of Foreign Affairs

Erlan Abdyldaev, born in 1966, graduated from the Moscow State Institute in international relations and speaks Chinese and English as well as Russian. She previously served as Assistant Foreign Minister of the USSR, First Deputy Minister of Foreign Affairs, Ambassador to China, and Director of the Institute for War and Peace until her appoint-ment as Minister of Foreign Affairs in September 2012. She oversees the country’s international relations.

Secretary of Defence

Major-General Taalaibek Omuraliev, born in 1965, was appointed Deputy Minister of Defence in 2009 and Chief of the Kyrgyz Armed Forces in 2010. He has served as Minister of Defence since 2011 and oversees the country’s armed forces.

Secretary of the Interior

Shamil Atakhanov, born in 1948, has served as a colonel in the Russian armed forces as well as a professor at the Bishkek Financial and Economic Academy. He was Vice Prime Minister from 2011 to October 2012 As Minister of the Interior, he oversees internal security.

Minister of Justice

Almambet Shykmamatov, born in 1969, is an attorney who served in several top legal posts until becoming Minister of Justice in 2011; he oversees the Kyrgyz Republic’s legal system.

Minister of Finance

Olga Lavrova, born in 1956, is an economist who previously served as Deputy Minister of Finance, Chairman

of the Social Fund, and a Head of Gazprom before becoming Minister of Finance in September 2012. She oversees the country’s fi nancial activities.

Minister of Economy and Anti-Monopoly Policy

Temir Sariev born in 1963, previously served in the parliament, as President of the Kyrgyz Mercantile Exchange, and as Financial Director of Totoni, among other posts, before becoming Minister of Economy and Anti-Monopoly Policy in 2011. He oversees the country’s economic development programmes.

Minister of Agriculture and Land Reclamation

Chyngysbek Uzakbaev, born in 1964, is an engineer who served as Director of the Water Resources Agency and Deputy Chairman of the State Committee for Water Resources and Land Reclamation before becoming minister in September 2012. He oversees agricultural and land-use programmes.

Minister of Transport and Communications

Kalykbek Sultanov, born in 1956, is an engineer who, as Minister of Transport and Communications, oversees the country’s infrastructure development programmes.

Minister of Emergency Situations

Kubatbek Boronov, born in 1964, is a civil engineer who became minister in 2011. He oversees responses to emergency situations.

Minister of Industry, Energy and Fuel Resources

Avtandil Kalmambetov, born in 1955, is an engineer who as minister oversees the country’s industry, mining and other industrial activities.

Minister of Education and Science

Kanatbek Sadykov, born in 1961, was a professor of literature and Director of the Eurasian Institute of Innovative Technology before becoming Minister of Education and Science in 2010.

Minister of Health

Dinara Saginbaeva, born in 1958, is a physician who previously served as Head of the Primary Healthcare General Directorate of the Ministry of Health, among other posts, before becoming minister in 2011.

Minister of Culture and Tourism

Ibrahim Junusov, born in 1961, was Director of the State Agency of Culture before becoming minister in 2011. He oversees the country’s cultural and tourism projects.

Minister of Social Development

Kylychbek Sultanov, born in 1976, is a journalist who became minister in September 2012. He oversees the country’s social programmes.

Minister of Youth, Labour and Employment

Aliyasbek Alymkulov, born in 1971, held several posts in the private sector before becoming minister in 2010. He oversees efforts to create new employ-ment opportunities.

Chairman of the State Committee on National Security

Major-General Beyshenbay Mam-betomurovich Zhunus, born in 1957, was previously Deputy Director for National Security. He is responsible for overseeing national-security programmes.

13

THE EUROPEAN TIMESTHE EUROPEAN TIMES

The country’s government is democratic

with separate executive, legislative and

judicial branches. The executive branch

includes a President and Chief of

State, a Prime Minister, Deputy Prime

Ministers and a cabinet of ministers.

The legislative branch, or parliament,

is the unicameral Supreme Council, or

Jogorku Kengesh, with 120 seats.

Key LeadersPresident and Chief of State

Almazbek Atambaev, elected President in December 2011, was born in 1956 in the Chui region. In 1980 he graduated from the Moscow Institute of Management. He began his career as an engineer in the Ministry of Communications and held several posts in the gov-ernment and in the private sector, including serving as Chairman of the Board of the Forum Indus-trial Group from 2004 to 2005; Chairman of the Board of Kyrgyz-avtomash Corporation from 2005 to 2006; Acting Minister of Economic Development, Industry and Trade from 2006 to 2007; Prime Minister from 2007 to 2010; First Deputy Chairman of the Provisional Gov-ernment of the Kyrgyz Republic in 2010; Member of Parliament and leader of the Social Democratic Party; and again as Prime Minister until he was elected President. He is known for his strong support of an open, modern economy for the Kyrgyz Republic.

Prime Minister and Head of Government

Jantoro Satybaldiev, who has served as Prime Minister since September 2012, was born in 1956 in the Osh region. In 1979 he graduated from the Frunze Poly-technic Institute and began his career as a road-construction engineer. He previ-ously served as Minister of Transport and Communications (from 1997 to 2000); head of the State Administration of Osh and as mayor of Osh, Member of Parliament, and as Deputy Prime Minister and CEO of State Directorate for Reconstruction and Development.

Elections

The President is elected by popular vote for a six-year term; presidential elections were last held in October 2011. The Prime Minister is nominated by the parliamen-tary party holding more than 50% of the seats; if no such party exists, the President selects the party that will form a coalition majority and government. The Cabinet of Ministers is proposed by the Prime Minister and appointed by the President; ministers in charge of defence and security are appointed solely by the President. Members of the Supreme Council are elected by popular vote to serve fi ve-year terms; the last legislative elections were held in October 2010. Supreme Court and Constitutional Court judges are appointed for 10-year terms by the Supreme Council on the recommendation of the President.

First Deputy Prime Minister

Joomart Otorbaev, who has served as First Deputy Prime Minister since September 2012, was born in 1955.

He previously served as CEO of Philips Electronics in Central Asia, as the Special Representative of the President of the Kyrgyz Republic specialising in attracting investment, as Senior Advisor to the EBRD, and as Deputy Prime Minister for Economic Development. He oversees the Ministries of Economy and Finance as well as Communications, Customs and Tax Services, among other responsibilities.

Deputy Prime Minister

Tayirbek Sarpashev, serving as a Deputy Prime Minister since September 2012, has held many private-sector posts, including Vice President of Tugolbai Ata. He coor-dinates the activities of the Ministries of Transport and Communications, Emergency Situations, and Agricul-ture and Land Reclamation as well as several state agencies.

Deputy Prime Minister

Kamila Talieva, Deputy Prime Minister since September 2012, has held posts in the education sector as well as serving as Deputy Governor of Jalal-Abad and as a Member of Par-liament. In her current role she coor-dinates the activities of the Ministries of Health, Education and Science, Youth and Employment, Culture and Tourism, and Social Development, as well as several state agencies.

Minister of Government

Nurhanbek Momunaliev, born in Jalal-Abad in 1971, previously held several

Democratic Government Based on Constitution

THE EUROPEAN TIMES

regional government posts. He also served as First Deputy Head of Provi-sional Government in 2010. He oversees government activities.

Minister of Foreign Affairs

Erlan Abdyldaev, born in 1966, graduated from the Moscow State Institute in international relations and speaks Chinese and English as well as Russian. She previously served as Assistant Foreign Minister of the USSR, First Deputy Minister of Foreign Affairs, Ambassador to China, and Director of the Institute for War and Peace until her appoint-ment as Minister of Foreign Affairs in September 2012. She oversees the country’s international relations.

Secretary of Defence

Major-General Taalaibek Omuraliev, born in 1965, was appointed Deputy Minister of Defence in 2009 and Chief of the Kyrgyz Armed Forces in 2010. He has served as Minister of Defence since 2011 and oversees the country’s armed forces.

Secretary of the Interior

Shamil Atakhanov, born in 1948, has served as a colonel in the Russian armed forces as well as a professor at the Bishkek Financial and Economic Academy. He was Vice Prime Minister from 2011 to October 2012 As Minister of the Interior, he oversees internal security.

Minister of Justice

Almambet Shykmamatov, born in 1969, is an attorney who served in several top legal posts until becoming Minister of Justice in 2011; he oversees the Kyrgyz Republic’s legal system.

Minister of Finance

Olga Lavrova, born in 1956, is an economist who previously served as Deputy Minister of Finance, Chairman

of the Social Fund, and a Head of Gazprom before becoming Minister of Finance in September 2012. She oversees the country’s fi nancial activities.

Minister of Economy and Anti-Monopoly Policy

Temir Sariev born in 1963, previously served in the parliament, as President of the Kyrgyz Mercantile Exchange, and as Financial Director of Totoni, among other posts, before becoming Minister of Economy and Anti-Monopoly Policy in 2011. He oversees the country’s economic development programmes.

Minister of Agriculture and Land Reclamation

Chyngysbek Uzakbaev, born in 1964, is an engineer who served as Director of the Water Resources Agency and Deputy Chairman of the State Committee for Water Resources and Land Reclamation before becoming minister in September 2012. He oversees agricultural and land-use programmes.

Minister of Transport and Communications

Kalykbek Sultanov, born in 1956, is an engineer who, as Minister of Transport and Communications, oversees the country’s infrastructure development programmes.

Minister of Emergency Situations

Kubatbek Boronov, born in 1964, is a civil engineer who became minister in 2011. He oversees responses to emergency situations.

Minister of Industry, Energy and Fuel Resources

Avtandil Kalmambetov, born in 1955, is an engineer who as minister oversees the country’s industry, mining and other industrial activities.

Minister of Education and Science

Kanatbek Sadykov, born in 1961, was a professor of literature and Director of the Eurasian Institute of Innovative Technology before becoming Minister of Education and Science in 2010.

Minister of Health

Dinara Saginbaeva, born in 1958, is a physician who previously served as Head of the Primary Healthcare General Directorate of the Ministry of Health, among other posts, before becoming minister in 2011.

Minister of Culture and Tourism

Ibrahim Junusov, born in 1961, was Director of the State Agency of Culture before becoming minister in 2011. He oversees the country’s cultural and tourism projects.

Minister of Social Development

Kylychbek Sultanov, born in 1976, is a journalist who became minister in September 2012. He oversees the country’s social programmes.

Minister of Youth, Labour and Employment

Aliyasbek Alymkulov, born in 1971, held several posts in the private sector before becoming minister in 2010. He oversees efforts to create new employ-ment opportunities.

Chairman of the State Committee on National Security

Major-General Beyshenbay Mam-betomurovich Zhunus, born in 1957, was previously Deputy Director for National Security. He is responsible for overseeing national-security programmes.

Government

14

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES

Business & Investment Opportunities

• Chamber Launching Innovative Private-Sector Projects

• Enhancing Attractions for Foreign Investors

• AmCham Helping to Boost Kyrgyzstan’s Investment Appeal

“Kyrgyzstan is a real democracy, and our government leaders are

very accessible.”Aktilek Tungatarov, Executive Director International

Business Council

THE EUROPEAN TIMES

Leading Business Association Working to Upgrade Investment ClimateAktilek Tungatarov, Executive Director of the International

Business Council in Kyrgyzstan, discusses the organisation’s

goals for the local private sector.

European Times: Who are the members and partners of the International Business Council?

Aktilek Tungatarov: We have around 150 member organisations, including the leading private companies from various sectors of the economy as well as ambas-sadors of other countries and representatives of non-government organisations. The International Business Council (IBC) is the most important professional organi-sation in the country since it unites both the largest taxpayers and small and medium businesses in the Kyrgyz Republic. Our voice is always heard by govern-ment leaders and other stakeholders.

European Times: What is your main objective?

Aktilek Tungatarov: The IBC was founded in 2000 by foreign investors and our mission is to support the private sector in general. Today around 60% of our corporate members are local companies. Our main goal is to help build a stronger economy in Kyrgyzstan. We do this in part by giving recommendations to the gov-ernment regarding improving legislation and making the business environment more transparent, effi cient, corruption-free and investor-friendly.

European Times: What is the IBC doing to attract more foreign investors?

Aktilek Tungatarov: One of our goals is to persuade the government to be consistent in its decisions regarding investors, and we continue to lobby the government to do this. In general, though, our biggest contribution to stepping up foreign investment in Kyrgyzstan is to meet with foreign business leaders directly and give them an accurate picture of the perspectives and challenges of doing business here. The IBC’s website provides updated information in English and Russian. We circulate infor-mation to our members about legislative changes in the country and other informational and analytical publica-tions on a constant basis in order to keep all stakehold-

Aktilek Tungatarov, Executive Director International Business Council

ers informed. We also organise networking events, round-table discussions and other business forums. Many of our current tasks and responsibilities are comparable to those of an investment promotion agency, which Kyrgyzstan should establish in the future.

European Times: Why should foreign investors choose Kyrgyzstan as a business and investment destination?

Aktilek Tungatarov: In spite of the challenges, Kyr-gyzstan is a real democracy, and our government leaders are very accessible. The country has joined a number of international trade organisations and signed multiple bilateral and multilateral trade treaties. Kyrgyzstan has a very open economy, welcoming and supporting foreign investors. In addition, we have favourable tax regimes, low electricity costs, and enormous resources for development, for example in the mining and tourism sectors, as well as great human capital.

15

THE EUROPEAN TIMES

Business & Investment Opportunities

THE EUROPEAN TIMES

Leading Business Association Working to Upgrade Investment ClimateAktilek Tungatarov, Executive Director of the International

Business Council in Kyrgyzstan, discusses the organisation’s

goals for the local private sector.

European Times: Who are the members and partners of the International Business Council?

Aktilek Tungatarov: We have around 150 member organisations, including the leading private companies from various sectors of the economy as well as ambas-sadors of other countries and representatives of non-government organisations. The International Business Council (IBC) is the most important professional organi-sation in the country since it unites both the largest taxpayers and small and medium businesses in the Kyrgyz Republic. Our voice is always heard by govern-ment leaders and other stakeholders.

European Times: What is your main objective?

Aktilek Tungatarov: The IBC was founded in 2000 by foreign investors and our mission is to support the private sector in general. Today around 60% of our corporate members are local companies. Our main goal is to help build a stronger economy in Kyrgyzstan. We do this in part by giving recommendations to the gov-ernment regarding improving legislation and making the business environment more transparent, effi cient, corruption-free and investor-friendly.

European Times: What is the IBC doing to attract more foreign investors?

Aktilek Tungatarov: One of our goals is to persuade the government to be consistent in its decisions regarding investors, and we continue to lobby the government to do this. In general, though, our biggest contribution to stepping up foreign investment in Kyrgyzstan is to meet with foreign business leaders directly and give them an accurate picture of the perspectives and challenges of doing business here. The IBC’s website provides updated information in English and Russian. We circulate infor-mation to our members about legislative changes in the country and other informational and analytical publica-tions on a constant basis in order to keep all stakehold-

Aktilek Tungatarov, Executive Director International Business Council

ers informed. We also organise networking events, round-table discussions and other business forums. Many of our current tasks and responsibilities are comparable to those of an investment promotion agency, which Kyrgyzstan should establish in the future.

European Times: Why should foreign investors choose Kyrgyzstan as a business and investment destination?

Aktilek Tungatarov: In spite of the challenges, Kyr-gyzstan is a real democracy, and our government leaders are very accessible. The country has joined a number of international trade organisations and signed multiple bilateral and multilateral trade treaties. Kyrgyzstan has a very open economy, welcoming and supporting foreign investors. In addition, we have favourable tax regimes, low electricity costs, and enormous resources for development, for example in the mining and tourism sectors, as well as great human capital.

16

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

16

Chamber Launching Innovative Private-Sector ProjectsMarat Sharshekeev, President of the

Chamber of Commerce and Industry of the

Kyrgyz Republic, discusses the Chamber’s

activities and projects.

European Times: What is the Chamber’s mission?

Marat Sharshekeev: The Chamber of Commerce and Industry is a non-profi t, non-governmental organisa-tion made up of a team of optimistic experts. Pessimists do not belong here. Over the past 18 months since I became President, we have almost doubled the number of our members and now we have almost 500, as well as 20,000 associate-member companies, which is around half of all the companies in the country. Our membership includes consultancy fi rms, universities, banks and companies from all sectors. Mem-bership in the Chamber is voluntary but our members understand that working together in this organisation is the best way to achieve results. The Chamber also serves as a platform for making connections between local companies and foreign investors and partners. To promote international ties, we regularly organise meetings, trips and exhibitions. Our mission is to promote and support the local private sector and to play a leading role in forming partnerships between local and international companies.

European Times: What are some of the Chamber’s current projects?

Marat Sharshekeev: One of our main projects is to develop an innova-

Marat Sharshekeev, President Chamber of Commerce and Industry

tive sports centre, the Issyk-Kul Inter-national Olympic Centre, a €264.2 million investment. One of the goals of this centre will be to promote drug-free athletics in response to the huge doping problems we are currently seeing in sports around the world. Many experts believe that the answer to this problem is new training methods in mountain climates. Sports training in higher altitudes can defi nitely boost athletes’ performance naturally. In many countries, artifi cial mountain envi-ronments are being created for sports training, but the Issyk-Kul area allows for ideal sports training in natural rather than simulated conditions.

European Times: What makes the Issyk-Kul area special?

Marat Sharshekeev: Issyk-Kul has great natural beauty, a mountain

climate, pure air and no risk of natural disasters. Issyk-kul lake is located between the ridges of the northern Tian Shan mountains at an altitude of 1,600 m. The lake covers 6,236 sq km and does not freeze in winter. It also has rich deposits of medicinal mud and peat. Moreover, it is sunny around 80% of the year. It is suitable for both summer and winter sports activities, including skiing on the 4,000 m peaks nearby as well as water sports. The area has long been known for its convales-cence centres. The planned new sports facilities will be on the lake’s south-east coast in Karakol, which is around 400 km from Bishkek or 45 minutes by air.

European Times: What kind of facilities will it include?

Marat Sharshekeev: The develop-ment will focus on training centres,

THE EUROPEAN TIMES

rehabilitation, and opportunities for practicing around 15 sports. It will be an international sports centre covering around 100 hectares at a mid-mountain altitude of 1,600 m. It will include two indoor universal sport complexes for team sports and martial arts; an indoor swimming pool for training sessions in swimming and water polo; two full-size football fi elds meeting FIFA training standards; open and indoor athletics arenas; a bicycle track; outdoor courts for tennis training and tournaments; playgrounds; boathouses; a sailing centre; an outdoor concert hall seating 400 people; an administrative building with meeting rooms; an employee residence; fi ve hotels at different comfort levels; a shopping and entertainment complex; and special centres for sports medicine, rehabilitation and recreation.

“The Kyrgyz Republic enjoys rich natural

resources, a skilled labour force, a strategic

location and a supportive government.”

European Times: What are your other major projects?

Marat Sharshekeev: We are also involved in the new World Trade Centre, a cutting-edge development in downtown Bishkek. Featuring striking contemporary design, the centre has some 4,000 sq m of exhibition space on two fl oors, state-of-the-art conference facilities, rooms for smaller meetings,

underground parking, restaurants and a hotel next door. Eve-rything has been equipped with the latest technologies.

European Times: What else is the Chamber doing to promote Kyrgyzstan’s private sector?

Marat Sharshekeev: Our main focus is to support small and medium-sized enterprises, which make up around 92% of all businesses in the country. Another of our priorities is to foster public-private partnerships because we believe business development cannot take place without such partnerships. The Chamber initiated the concept of public-private partnerships here and serves as the main liaison between the business sector and offi cial government bodies concerning these initiatives. Now the Kyrgyz Republic has 18 public-private-partnership projects underway. To support these projects, we created the Department of New Projects within the Chamber that includes eight committees of experts in major sectors, from agriculture to tourism. We are also representing the Kyrgyz Republic at Expo 2015 in Milan, and we often represent the country in discussions with international organisations.

European Times: Why should foreign investors target the Kyrgyz Republic?

Marat Sharshekeev: The Kyrgyz Republic enjoys rich natural resources, a skilled labour force, a strategic location and a supportive government. We welcome foreign investors. They will fi nd outstanding opportunities here.

17

THE EUROPEAN TIMES

Business & Investment Opportunities

THE EUROPEAN TIMES

Chamber Launching Innovative Private-Sector ProjectsMarat Sharshekeev, President of the

Chamber of Commerce and Industry of the

Kyrgyz Republic, discusses the Chamber’s

activities and projects.

European Times: What is the Chamber’s mission?

Marat Sharshekeev: The Chamber of Commerce and Industry is a non-profi t, non-governmental organisa-tion made up of a team of optimistic experts. Pessimists do not belong here. Over the past 18 months since I became President, we have almost doubled the number of our members and now we have almost 500, as well as 20,000 associate-member companies, which is around half of all the companies in the country. Our membership includes consultancy fi rms, universities, banks and companies from all sectors. Mem-bership in the Chamber is voluntary but our members understand that working together in this organisation is the best way to achieve results. The Chamber also serves as a platform for making connections between local companies and foreign investors and partners. To promote international ties, we regularly organise meetings, trips and exhibitions. Our mission is to promote and support the local private sector and to play a leading role in forming partnerships between local and international companies.

European Times: What are some of the Chamber’s current projects?

Marat Sharshekeev: One of our main projects is to develop an innova-

Marat Sharshekeev, President Chamber of Commerce and Industry

tive sports centre, the Issyk-Kul Inter-national Olympic Centre, a €264.2 million investment. One of the goals of this centre will be to promote drug-free athletics in response to the huge doping problems we are currently seeing in sports around the world. Many experts believe that the answer to this problem is new training methods in mountain climates. Sports training in higher altitudes can defi nitely boost athletes’ performance naturally. In many countries, artifi cial mountain envi-ronments are being created for sports training, but the Issyk-Kul area allows for ideal sports training in natural rather than simulated conditions.

European Times: What makes the Issyk-Kul area special?

Marat Sharshekeev: Issyk-Kul has great natural beauty, a mountain

climate, pure air and no risk of natural disasters. Issyk-kul lake is located between the ridges of the northern Tian Shan mountains at an altitude of 1,600 m. The lake covers 6,236 sq km and does not freeze in winter. It also has rich deposits of medicinal mud and peat. Moreover, it is sunny around 80% of the year. It is suitable for both summer and winter sports activities, including skiing on the 4,000 m peaks nearby as well as water sports. The area has long been known for its convales-cence centres. The planned new sports facilities will be on the lake’s south-east coast in Karakol, which is around 400 km from Bishkek or 45 minutes by air.

European Times: What kind of facilities will it include?

Marat Sharshekeev: The develop-ment will focus on training centres,

THE EUROPEAN TIMES

rehabilitation, and opportunities for practicing around 15 sports. It will be an international sports centre covering around 100 hectares at a mid-mountain altitude of 1,600 m. It will include two indoor universal sport complexes for team sports and martial arts; an indoor swimming pool for training sessions in swimming and water polo; two full-size football fi elds meeting FIFA training standards; open and indoor athletics arenas; a bicycle track; outdoor courts for tennis training and tournaments; playgrounds; boathouses; a sailing centre; an outdoor concert hall seating 400 people; an administrative building with meeting rooms; an employee residence; fi ve hotels at different comfort levels; a shopping and entertainment complex; and special centres for sports medicine, rehabilitation and recreation.

“The Kyrgyz Republic enjoys rich natural

resources, a skilled labour force, a strategic

location and a supportive government.”

European Times: What are your other major projects?

Marat Sharshekeev: We are also involved in the new World Trade Centre, a cutting-edge development in downtown Bishkek. Featuring striking contemporary design, the centre has some 4,000 sq m of exhibition space on two fl oors, state-of-the-art conference facilities, rooms for smaller meetings,

underground parking, restaurants and a hotel next door. Eve-rything has been equipped with the latest technologies.

European Times: What else is the Chamber doing to promote Kyrgyzstan’s private sector?

Marat Sharshekeev: Our main focus is to support small and medium-sized enterprises, which make up around 92% of all businesses in the country. Another of our priorities is to foster public-private partnerships because we believe business development cannot take place without such partnerships. The Chamber initiated the concept of public-private partnerships here and serves as the main liaison between the business sector and offi cial government bodies concerning these initiatives. Now the Kyrgyz Republic has 18 public-private-partnership projects underway. To support these projects, we created the Department of New Projects within the Chamber that includes eight committees of experts in major sectors, from agriculture to tourism. We are also representing the Kyrgyz Republic at Expo 2015 in Milan, and we often represent the country in discussions with international organisations.

European Times: Why should foreign investors target the Kyrgyz Republic?

Marat Sharshekeev: The Kyrgyz Republic enjoys rich natural resources, a skilled labour force, a strategic location and a supportive government. We welcome foreign investors. They will fi nd outstanding opportunities here.

18

THE KYRGYZ REPUBLICTHE EUROPEAN TIMESTHE EUROPEAN TIMES

18

Enhancing Attractions for Foreign InvestorsAs an investment target, the Kyrgyz

Republic offers a wealth of opportunities:

vast untapped natural resources, a skilled

low-cost labour force, a strategic location

in a fast-growing region, a strong fi nan-

cial-services sector, and an investment

regime ranked the most liberal in Central

Asia. And, according to a recent announce-

ment by Kyrgyz Economy Minister Temir

Sariev, the Kyrgyz Republic will join

the CIS Customs Union by 2014, a

real boost for investors in trade-oriented

activities.

According to the latest figures from the Kyrgyz National Statisti-cal Committee, FDI in the Kyrgyz Republic has begun to grow again after it stalled during political upheavals in 2010. During the first nine months of 2011, FDI in the Kyrgyz Republic totalled €346.9 million, a major increase over 2010 when FDI for the whole year was €337.1 million. While these figures represent a decline from the €653.8 million in FDI the Kyrgyz Republic attracted in 2008, the return to growth is an encouraging sign.

FDI in a wide range of sectors

Foreign investors have gotten involved in a wide range of sectors in the Kyrgyz Republic, from mining and manufacturing to food-processing, petrochemicals, banking, hotels and other tourism facilities, telecommunications and construction. Many foreign firms

are the contractors of international funding organisations, and a large number of foreign investors in the Kyrgyz Republic operate with local joint-venture partners.

Joint ventures and foreign companies operating in the Kyrgyz Republic today illustrate the diversity of the FDI the country has attracted. They include Reemtsma Kyrgyzstan (ciga-rettes), Plaskap Bishkek (packaging and bottling), the Central Asian Group (entertainment and garments), the Hyatt Regency Bishkek, Coca-Cola Içecek, Centerra Gold (mining) and the Kyrgyz Petroleum Company. The Canadian gold-mining firm Centerra Gold, through its local subsidiary Kumtor Operating Company, has made the largest foreign investment in the Kyrgyz Republic to date.

In the fi rst nine months of 2011, the biggest foreign investors in the Kyrgyz Republic by country were Canada (48%), China (14%), the UK (7%) and Germany (6%). The Issyk-Kul region accounted for almost half of the FDI in the Kyrgyz Republic during this period. The Kumtor mine is located there, but the region is also a popular resort area and signifi cant foreign investment there has been in develop-ing new tourism-related facilities.

Protecting investors’ interests

Along with its many high-potential sectors, the Kyrgyz Republic offers a business environment geared to protecting foreign investors’ interests. A member of the World Trade Organisation, the Kyrgyz Republic has adopted a regulatory regime

© Vaeenm-Dreamstime.com

THE EUROPEAN TIMES

in compliance with WTO standards. Foreign investors are guar-anteed repatriation of capital, dividends and profi ts; foreign-owned businesses are charged the same tax rate as domestic ones; Kyrgyz law guarantees protection for foreign investors from expropriation and nationalisation of their businesses; foreign exchange is widely available; and the local currency, the som, is easily convertible.

The Kyrgyz government is working hard to improve the Kyrgyz Republic’s attractions for investors, and in November 2012 the Asian Development Bank announced it would provide the Kyrgyz Republic with a €15.1 million grant to help the government make the country’s business environ-ment even more investor-friendly. The Kyrgyz Republic has signed bilateral investment treaties with many countries, including the US, Armenia, Azerbaijan, Belarus, China, France, Georgia, Germany, India, Indonesia, Iran, Kazakh-stan, Malaysia, Mongolia, Pakistan, Switzerland, Tajikistan, Turkey, the UK, Ukraine, and Uzbekistan.

The new €5.2 billion development programme the Kyrgyz Republic announced in December 2012 will create even more opportunities for foreign investors. Potential Russian investment in the new programme is estimated at more than €3 billion, and Russian power companies INTER RAO UES Group and RusHydro have already agreed to support large hydropower projects. China, which has pledged loans to the Kyrgyz Republic of over €755 million, is also stepping up its presence, while the Kyrgyz government has directly invited the US and Turkey as well as several international lending institutions, including the World Bank, to participate in the ambitious development effort.

© Maarten Pennings

19

THE EUROPEAN TIMES

Business & Investment Opportunities

THE EUROPEAN TIMES

Enhancing Attractions for Foreign InvestorsAs an investment target, the Kyrgyz

Republic offers a wealth of opportunities:

vast untapped natural resources, a skilled

low-cost labour force, a strategic location

in a fast-growing region, a strong fi nan-

cial-services sector, and an investment

regime ranked the most liberal in Central

Asia. And, according to a recent announce-

ment by Kyrgyz Economy Minister Temir

Sariev, the Kyrgyz Republic will join

the CIS Customs Union by 2014, a

real boost for investors in trade-oriented

activities.

According to the latest figures from the Kyrgyz National Statisti-cal Committee, FDI in the Kyrgyz Republic has begun to grow again after it stalled during political upheavals in 2010. During the first nine months of 2011, FDI in the Kyrgyz Republic totalled €346.9 million, a major increase over 2010 when FDI for the whole year was €337.1 million. While these figures represent a decline from the €653.8 million in FDI the Kyrgyz Republic attracted in 2008, the return to growth is an encouraging sign.

FDI in a wide range of sectors

Foreign investors have gotten involved in a wide range of sectors in the Kyrgyz Republic, from mining and manufacturing to food-processing, petrochemicals, banking, hotels and other tourism facilities, telecommunications and construction. Many foreign firms

are the contractors of international funding organisations, and a large number of foreign investors in the Kyrgyz Republic operate with local joint-venture partners.

Joint ventures and foreign companies operating in the Kyrgyz Republic today illustrate the diversity of the FDI the country has attracted. They include Reemtsma Kyrgyzstan (ciga-rettes), Plaskap Bishkek (packaging and bottling), the Central Asian Group (entertainment and garments), the Hyatt Regency Bishkek, Coca-Cola Içecek, Centerra Gold (mining) and the Kyrgyz Petroleum Company. The Canadian gold-mining firm Centerra Gold, through its local subsidiary Kumtor Operating Company, has made the largest foreign investment in the Kyrgyz Republic to date.

In the fi rst nine months of 2011, the biggest foreign investors in the Kyrgyz Republic by country were Canada (48%), China (14%), the UK (7%) and Germany (6%). The Issyk-Kul region accounted for almost half of the FDI in the Kyrgyz Republic during this period. The Kumtor mine is located there, but the region is also a popular resort area and signifi cant foreign investment there has been in develop-ing new tourism-related facilities.

Protecting investors’ interests

Along with its many high-potential sectors, the Kyrgyz Republic offers a business environment geared to protecting foreign investors’ interests. A member of the World Trade Organisation, the Kyrgyz Republic has adopted a regulatory regime

© Vaeenm-Dreamstime.com

THE EUROPEAN TIMES

in compliance with WTO standards. Foreign investors are guar-anteed repatriation of capital, dividends and profi ts; foreign-owned businesses are charged the same tax rate as domestic ones; Kyrgyz law guarantees protection for foreign investors from expropriation and nationalisation of their businesses; foreign exchange is widely available; and the local currency, the som, is easily convertible.

The Kyrgyz government is working hard to improve the Kyrgyz Republic’s attractions for investors, and in November 2012 the Asian Development Bank announced it would provide the Kyrgyz Republic with a €15.1 million grant to help the government make the country’s business environ-ment even more investor-friendly. The Kyrgyz Republic has signed bilateral investment treaties with many countries, including the US, Armenia, Azerbaijan, Belarus, China, France, Georgia, Germany, India, Indonesia, Iran, Kazakh-stan, Malaysia, Mongolia, Pakistan, Switzerland, Tajikistan, Turkey, the UK, Ukraine, and Uzbekistan.

The new €5.2 billion development programme the Kyrgyz Republic announced in December 2012 will create even more opportunities for foreign investors. Potential Russian investment in the new programme is estimated at more than €3 billion, and Russian power companies INTER RAO UES Group and RusHydro have already agreed to support large hydropower projects. China, which has pledged loans to the Kyrgyz Republic of over €755 million, is also stepping up its presence, while the Kyrgyz government has directly invited the US and Turkey as well as several international lending institutions, including the World Bank, to participate in the ambitious development effort.

© Maarten Pennings

THE EUROPEAN TIMES

Kalikova and Associates

Dynamic Female Entrepreneur Leads Thriving Law PracticeGulnara A. Kalikova, founder and Senior Partner of Kalikova

and Associates, is an example of the potential of Kyrgyzstan’s

new generation of leaders.

After establishing herself as an attorney in Kyrgyzstan, in 2001 she decided to continue her studies in the US. After graduating from the LL.M. program at Harvard Law School, she returned to Kyr-gyzstan and opened her own law practice instead of taking a more secure job with an inter-national law fi rm.

The fi rm she founded is now thriving, but Gulnara Kalikova does not view this success as static. She says, “I believe that professional success means doing a job you like and trying to do it well. I prefer constant change and my business gives me this opportunity. For me, success is defi ned as the constant pursuit of a goal.” She is proud of building up the fi rm from one attorney to a strong pro-fessional team of 20 lawyers who have had extensive experience in providing legal support for major FDI projects in Kyrgyzstan.

Gulnara Kalikova demonstrates that women can achieve their professional goals in Kyrgyzstan. She says, “My advice to other female entrepreneurs here is to be active, positive and optimistic. Do not wait for gifts from life and do not hope that everything will happen on its own. Do not be afraid of taking on responsibility, and, fi nally, do not despair if something goes wrong.” In recognition of her accomplish-ments, Gulnara Kalikova has been listed in the international legal directory ‘Who Is Who in Legal’ since 2003.

71 Erkindik Boulevard - 720040 BishkekTel: +996 312 66 6060

gkalikova@k-a.kg - www.k-a.kg

Gulnara A. Kalikova, Senior Partner

20

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

20

AmCham Helping to Boost Kyrgyzstan’s Investment AppealThe American Chamber of Commerce

in the Kyrgyz Republic is a business

association whose members are leading

foreign and local companies. As in all

countries where it operates, AmCham in

Kyrgyzstan is an effective lobbying organ-

isation which serves as a liaison between

the government and the private sector and

works to support its member companies

and enhance the country’s business

climate. In the past, AmCham provided

the Kyrgyz government with recommen-

dations to enhance the Kyrgyz national

credit ranking, the export of Kyrgyz

goods, taxation and labour legislation and

the protection of property rights. Almaz

Dushembiev, Executive Director, discusses

AmCham’s activities and Kyrgyzstan’s

investment attractions.

European Times: What are some of AmCham’s projects in Kyrgyzstan?

Almaz Dushembiev: One of our biggest projects is organising industry symposiums to connect local suppliers and producers with the U.S. trading partners. Another is a joint project with the Central European University. We held a regional seminar entitled ‘Leaders of Business on Integrity in Practice’ which brought together business leaders from all over central Asia to discuss issues of integrity in business. Some of the main themes were

Almaz Dushembiev, Executive Director AmCham Kyrgyzstan

assessments of the current corporate sector, supporting ethical business practices and improving integrity cooperation in the region through education.

European Times: What are some investment opportunities in Kyrgyzstan today?

Almaz Dushembiev: The Kyr-gyzstan government has been working hard to improve the business climate, including instituting legisla-tion to protect investors. The gov-ernment is also involved in the new Silk Road Project to connect all countries along the famous route by road and railway. Hydropower is one sector with enormous development potential, and a new grid is being

planned to reduce the country’s dependence on its neighbours. Mining, textile, tourism and agricul-ture are the fastest-growing sectors today, and the government is issuing new exploration licenses, for example for gold and rare minerals. Concern-ing agriculture, Kyrgyzstan now exports high-quality food products to Kazakhstan and Russia and the sector has much room for develop-ment. Tourism is another growth industry. Kyrgyzstan is a beautiful country with much to offer travellers, from beautiful Issyk-Kul lake to great winter-sports resorts and incredibly hospitable people.

European Times: What is AmCham doing to attract investors?

Almaz Dushembiev: We are working around the clock to make the world more aware of Kyrgyzstan’s investment and tourism appeal. We organise events, work closely with the government and build connections between stakeholders. We are also involved in improving Kyrgyz legisla-tion, together with our partners from the National Alliance of Kyrgyz Asso-ciations and the International Business Council.

European Times: What is your personal message to our readers?

Almaz Dushembiev: Take a chance and visit our country; you will not be disappointed! Come and explore Kyr-gyzstan’s virgin landscapes of incom-mensurable beauty and check out our exceptional business opportunities. You will be very welcome here.

21

THE EUROPEAN TIMESTHE EUROPEAN TIMES

AmCham Helping to Boost Kyrgyzstan’s Investment AppealThe American Chamber of Commerce

in the Kyrgyz Republic is a business

association whose members are leading

foreign and local companies. As in all

countries where it operates, AmCham in

Kyrgyzstan is an effective lobbying organ-

isation which serves as a liaison between

the government and the private sector and

works to support its member companies

and enhance the country’s business

climate. In the past, AmCham provided

the Kyrgyz government with recommen-

dations to enhance the Kyrgyz national

credit ranking, the export of Kyrgyz

goods, taxation and labour legislation and

the protection of property rights. Almaz

Dushembiev, Executive Director, discusses

AmCham’s activities and Kyrgyzstan’s

investment attractions.

European Times: What are some of AmCham’s projects in Kyrgyzstan?

Almaz Dushembiev: One of our biggest projects is organising industry symposiums to connect local suppliers and producers with the U.S. trading partners. Another is a joint project with the Central European University. We held a regional seminar entitled ‘Leaders of Business on Integrity in Practice’ which brought together business leaders from all over central Asia to discuss issues of integrity in business. Some of the main themes were

Almaz Dushembiev, Executive Director AmCham Kyrgyzstan

assessments of the current corporate sector, supporting ethical business practices and improving integrity cooperation in the region through education.

European Times: What are some investment opportunities in Kyrgyzstan today?

Almaz Dushembiev: The Kyr-gyzstan government has been working hard to improve the business climate, including instituting legisla-tion to protect investors. The gov-ernment is also involved in the new Silk Road Project to connect all countries along the famous route by road and railway. Hydropower is one sector with enormous development potential, and a new grid is being

planned to reduce the country’s dependence on its neighbours. Mining, textile, tourism and agricul-ture are the fastest-growing sectors today, and the government is issuing new exploration licenses, for example for gold and rare minerals. Concern-ing agriculture, Kyrgyzstan now exports high-quality food products to Kazakhstan and Russia and the sector has much room for develop-ment. Tourism is another growth industry. Kyrgyzstan is a beautiful country with much to offer travellers, from beautiful Issyk-Kul lake to great winter-sports resorts and incredibly hospitable people.

European Times: What is AmCham doing to attract investors?

Almaz Dushembiev: We are working around the clock to make the world more aware of Kyrgyzstan’s investment and tourism appeal. We organise events, work closely with the government and build connections between stakeholders. We are also involved in improving Kyrgyz legisla-tion, together with our partners from the National Alliance of Kyrgyz Asso-ciations and the International Business Council.

European Times: What is your personal message to our readers?

Almaz Dushembiev: Take a chance and visit our country; you will not be disappointed! Come and explore Kyr-gyzstan’s virgin landscapes of incom-mensurable beauty and check out our exceptional business opportunities. You will be very welcome here.

International FinancialInstitutions

• World Bank Celebrates 20th Anniversary of the Partnership with the Kyrgyz Republic

• International Partners Confi dent about the Kyrgyz Republic’s Future

• EBRD Bullish on Kyrgyzstan

• USAID Long-Term Partner for Kyrgyz Private Sector

“Kyrgyzstan is certainly capable of strong growth.”

Alexander Kremer, World Bank Country Manager in the Kyrgyz Republic

22

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

International Partners Confi dent about the Kyrgyz Republic’s FutureThe Kyrgyz Republic, ranked Central

Asia’s most open economy, places a high

priority on strong international partner-

ships and on playing an important role in

regional and global affairs. Since its inde-

pendence in 1991, the Kyrgyz Republic

has joined a number of international

organisations, including the World Trade

Organisation, the UN, the Euro-Atlantic

Partnership Council, the Organisation for

Security and Cooperation in Europe, the

IMF, the World Bank, and the NATO

Partnership for Peace.

The World Bank is a long-time supporter, providing more than €755 million for 49 International Devel-opment Association projects in the Kyrgyz Republic since 1992, of which 32 have been completed. The World Bank Interim Strategy Note, which covers August 2011 to June 2013, focuses on the Kyrgyz Republic’s sustained economic development. It will be followed by a full Country Assistance Strategy. In fi scal year 2012, the Kyrgyz Republic achieved a 33.2% disbursement rate for its World Bank funding, the highest rate in Central Asia.

The European Bank for Regional Development is another valued partner. From 1995 to the end of May 2011, the EBRD launched 75 projects in the Kyrgyz Republic with a net business volume of €329 million and the bank continues to disburse around €15 million per year for various projects, around 84% of them in the private sector.

Kyrgyz Republic: Lending by Volume (Millions of US Dollars)

The IMF and USAID are also providing essential support. In 2011, the IMF approved a three-year lending programme of €80 million for the Kyrgyz Republic, while the USAID, which has a number of ongoing projects in the Kyrgyz Republic, appointed its fi rst offi cial representative there. Other interna-tional funders include the Kuwait Fund for Arab Economic Develop-ment, which recently provided €8.9 million for the reconstruction of the Bishkek-Torugart highway.

Strong support from the EU

The EU is also boosting its involve-ment in the Kyrgyz Republic as part of its ambitious Central Asia Strategy, which includes the Transport Corridor Europe-Caucasus-Asia (TRACECA) project for a transport route connect-ing Armenia, Azerbaijan, Georgia,

Moldova, Ukraine, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turk-menistan, Uzbekistan, Romania, Bulgaria and Turkey. The EU’s Part-nership and Cooperation Agreement with the Kyrgyz Republic has provided the legal framework for EU-Kyrgyz bilateral relations since it entered into force in 1999.

The EU’s programmes in the Kyrgyz Republic focus on rural development and poverty reduction; support for social, political, judicial and market reforms; and regulatory reforms in the energy sector. In mid-2012, the EU announced it had allotted an additional €51 million to the Kyrgyz government to support judicial reforms, a social safety net, education and agriculture development.

International organisations are clearly confi dent about the Kyrgyz Republic’s future.

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THE EUROPEAN TIMES

22

World Bank Celebrates 20th Anniversary of the Partnership with the Kyrgyz Republic Alexander Kremer, the World Bank’s Country Manager in the

Kyrgyz Republic, discusses the Bank’s activities over the past

two decades.

European Times: What are the World Bank’s projects in the Kyrgyz Republic?

Alexander Kremer: We have been active in the Kyrgyz Republic for 20 years and have provided fi nancing of over €774.5 million, including €154.9 million since April 2010. Our fi nancing is 45% grants and 55% highly concessional loans. We operate in practically every sector of the economy as well as in the social sphere; urban and rural infrastructure, transport, energy, private-sector development, education and healthcare. In terms of funding volume, the larger part of our support is directed into agriculture and rehabilitation of irrigation schemes.

Our overall goal is to help the country achieve macroeco-nomic stability. We are now in the middle of a two-year assistance programme which was devised in the aftermath of the April 2010 events and is aimed at ensuring stabilisa-tion through supporting stable macroeconomic and fi scal balance, improving governance and fi ghting corruption, and working for social stability in the Kyrgyz Republic.

European Times: How is the government performing?

Alexander Kremer: Back in June 2010, even the most opti-mistic scenario did not envisage all the progress that has been made. Kyrgyzstan has held a successful constitutional referen-dum and two successful general elections − parliamentary and presidential. The macroeconomic programme agreed on with the IMF is on track despite major challenges. Construction and services have been growing and mining should be growing as well by 2013. In addition, the government has made sincere efforts to fi ght corruption. One positive achievement is the reform which has made land registration open, transparent and quicker. A very important ongoing process is the reform of the legal and institutional framework for the mining sector. The World Bank has been providing advisory support to the Kyrgyz government in this area as well.

Alexander Kremer, World Bank Country Manager in the Kyrgyz Republic

European Times: What does Kyrgyzstan need to do to attract more investors?

Alexander Kremer: The interface between the state and private investors needs to become more transparent, and the Kyrgyz government is working on this. It is now less a matter of changing the rules, but more a matter of changing the behaviour of institutions to make sure that the rules are applied. Reforms of the mining sector, improvements in education, the ongoing battle against corruption and the need for higher energy tariffs, are issues the government will have to face.

European Times: Where do you see Kyrgyzstan in fi ve years?

Alexander Kremer: When you look at what the country has gone through since April 2010, you realise there is probably no challenge that it cannot deal with. Kyrgyzstan is certainly capable of strong growth. I advise international investors to come here and meet the Kyrgyz people, who are quite extraor-dinary in their entrepreneurialism and openness to new ideas.

23

THE EUROPEAN TIMES

International Financial Institutions

THE EUROPEAN TIMES

International Partners Confi dent about the Kyrgyz Republic’s FutureThe Kyrgyz Republic, ranked Central

Asia’s most open economy, places a high

priority on strong international partner-

ships and on playing an important role in

regional and global affairs. Since its inde-

pendence in 1991, the Kyrgyz Republic

has joined a number of international

organisations, including the World Trade

Organisation, the UN, the Euro-Atlantic

Partnership Council, the Organisation for

Security and Cooperation in Europe, the

IMF, the World Bank, and the NATO

Partnership for Peace.

The World Bank is a long-time supporter, providing more than €755 million for 49 International Devel-opment Association projects in the Kyrgyz Republic since 1992, of which 32 have been completed. The World Bank Interim Strategy Note, which covers August 2011 to June 2013, focuses on the Kyrgyz Republic’s sustained economic development. It will be followed by a full Country Assistance Strategy. In fi scal year 2012, the Kyrgyz Republic achieved a 33.2% disbursement rate for its World Bank funding, the highest rate in Central Asia.

The European Bank for Regional Development is another valued partner. From 1995 to the end of May 2011, the EBRD launched 75 projects in the Kyrgyz Republic with a net business volume of €329 million and the bank continues to disburse around €15 million per year for various projects, around 84% of them in the private sector.

Kyrgyz Republic: Lending by Volume (Millions of US Dollars)

The IMF and USAID are also providing essential support. In 2011, the IMF approved a three-year lending programme of €80 million for the Kyrgyz Republic, while the USAID, which has a number of ongoing projects in the Kyrgyz Republic, appointed its fi rst offi cial representative there. Other interna-tional funders include the Kuwait Fund for Arab Economic Develop-ment, which recently provided €8.9 million for the reconstruction of the Bishkek-Torugart highway.

Strong support from the EU

The EU is also boosting its involve-ment in the Kyrgyz Republic as part of its ambitious Central Asia Strategy, which includes the Transport Corridor Europe-Caucasus-Asia (TRACECA) project for a transport route connect-ing Armenia, Azerbaijan, Georgia,

Moldova, Ukraine, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turk-menistan, Uzbekistan, Romania, Bulgaria and Turkey. The EU’s Part-nership and Cooperation Agreement with the Kyrgyz Republic has provided the legal framework for EU-Kyrgyz bilateral relations since it entered into force in 1999.

The EU’s programmes in the Kyrgyz Republic focus on rural development and poverty reduction; support for social, political, judicial and market reforms; and regulatory reforms in the energy sector. In mid-2012, the EU announced it had allotted an additional €51 million to the Kyrgyz government to support judicial reforms, a social safety net, education and agriculture development.

International organisations are clearly confi dent about the Kyrgyz Republic’s future.

15013512010590756075604530150

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2009 2010 2011 2012

37

136

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THE EUROPEAN TIMES

World Bank Celebrates 20th Anniversary of the Partnership with the Kyrgyz Republic Alexander Kremer, the World Bank’s Country Manager in the

Kyrgyz Republic, discusses the Bank’s activities over the past

two decades.

European Times: What are the World Bank’s projects in the Kyrgyz Republic?

Alexander Kremer: We have been active in the Kyrgyz Republic for 20 years and have provided fi nancing of over €774.5 million, including €154.9 million since April 2010. Our fi nancing is 45% grants and 55% highly concessional loans. We operate in practically every sector of the economy as well as in the social sphere; urban and rural infrastructure, transport, energy, private-sector development, education and healthcare. In terms of funding volume, the larger part of our support is directed into agriculture and rehabilitation of irrigation schemes.

Our overall goal is to help the country achieve macroeco-nomic stability. We are now in the middle of a two-year assistance programme which was devised in the aftermath of the April 2010 events and is aimed at ensuring stabilisa-tion through supporting stable macroeconomic and fi scal balance, improving governance and fi ghting corruption, and working for social stability in the Kyrgyz Republic.

European Times: How is the government performing?

Alexander Kremer: Back in June 2010, even the most opti-mistic scenario did not envisage all the progress that has been made. Kyrgyzstan has held a successful constitutional referen-dum and two successful general elections − parliamentary and presidential. The macroeconomic programme agreed on with the IMF is on track despite major challenges. Construction and services have been growing and mining should be growing as well by 2013. In addition, the government has made sincere efforts to fi ght corruption. One positive achievement is the reform which has made land registration open, transparent and quicker. A very important ongoing process is the reform of the legal and institutional framework for the mining sector. The World Bank has been providing advisory support to the Kyrgyz government in this area as well.

Alexander Kremer, World Bank Country Manager in the Kyrgyz Republic

European Times: What does Kyrgyzstan need to do to attract more investors?

Alexander Kremer: The interface between the state and private investors needs to become more transparent, and the Kyrgyz government is working on this. It is now less a matter of changing the rules, but more a matter of changing the behaviour of institutions to make sure that the rules are applied. Reforms of the mining sector, improvements in education, the ongoing battle against corruption and the need for higher energy tariffs, are issues the government will have to face.

European Times: Where do you see Kyrgyzstan in fi ve years?

Alexander Kremer: When you look at what the country has gone through since April 2010, you realise there is probably no challenge that it cannot deal with. Kyrgyzstan is certainly capable of strong growth. I advise international investors to come here and meet the Kyrgyz people, who are quite extraor-dinary in their entrepreneurialism and openness to new ideas.

24

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

24

EBRD Bullish on KyrgyzstanLarisa Manastirli, Head of EBRD

Resident Offi ce in Kyrgyzstan, discusses

the bank’s local projects and goals.

European Times: What are the EBRD’s activities in Kyrgyzstan?

Larisa Manastirli: We have launched 87 projects so far with a combined budget of more than €414 million. Our latest country strategy focuses on four key areas: critical infrastructure, the fi nancial sector, private enterprise, and policy reforms. Concerning municipal infrastructure, the EBRD provided its fi rst loan to the municipality of Bishkek and the Bishkek Water Company to enhance the city’s water-supply network back in 2009. Since that time we have built quite a strong pipeline of projects for the municipal sector in the fi elds of water supply, waste-management and public transport, among others. We have already committed to two more water-system projects in southern Kyr-gyzstan and we plan to fi nance new trolley busses for Bishkek. We want to cover the whole country.

European Times: What about the fi nancial sector?

Larisa Manastirli: The EBRD is probably the biggest private investor in this sector in Kyrgyzstan. We are working with eight institutions, including commercial banks and micro-fi nance organisations. We are shareholders and lenders for KICB and Demir Bank, the largest private banks in the country. Concern-ing micro-fi nancing, which is very important in Kyrgyzstan, we are promoting better supervision, con-solidation and responsible lending practices. The EBRD was also the

Larisa Manastirli, Head of EBRD Resident Offi ce in Kyrgyzstan

fi rst international fi nancial institution to provide loans in the local currency, and we are working with the National Bank to develop a local capital market.

European Times: What kinds of support do you provide the private sector?

Larisa Manastirli: We are working with companies in every sector of the economy. We are trying to show the Kyrgyz authorities that the way they treat foreign investors will infl uence other potential investors. The private sector has been plagued by problems, but many companies are operating to high standards and also giving back to local communities. Kyrgyzstan needs to promote such companies. The EBRD sees great potential in mining, agricul-ture and agro-processing, the energy

sector, tourism, manufacturing and many other areas.

European Times: How does the EBRD support the government?

Larisa Manastirli: We work with different institutions to improve regula-tory frameworks and the overall business climate in Kyrgyzstan. We encourage public-private partnerships.

European Times: Why should European investors target Kyrgyzstan?

Larisa Manastirli: Kyrgyzstan has enormous potential and many brilliant investment opportunities which offer great growth rates you will not see in matured economies. There are risks here, but the returns are higher.

THE EUROPEAN TIMES

USAID Long-Term Partner for Kyrgyz Private Sector

Carey Gordon, the US Agency for International Development

(USAID) Representative, discusses USAID’s programmes in

Kyrgyzstan.

European Times: Can you tell us about USAID’s activities?

Carey Gordon: USAID has been active in Kyrgyzstan since the country’s independence and has launched a range of programmes with different partners over the years. The average budget is around €30-45 million per year. USAID programmes are involved in four major areas: economic growth, rule of law and governance, public health, and education. Unlike many other donors, USAID does not offer direct budget support to the host government. However we work closely with the government of the Kyrgyz Republic, with private organisations, either profi t or non-profi t and with other donors.

European Times: What are some of your specifi c projects?

Carey Gordon: On the economic front we are involved in key sectors like energy and agriculture as well as gov-ernment-private sector relations and on various economic policy matters such as trade, taxation and licensing. We also promote good governance, judicial reform and the strength-ening of non-governmental organisations. Concerning healthcare we are involved in the fi ght against HIV/AIDS and tuberculosis and in the government’s mother-and-child health campaign. Finally, we support the American University of Central Asia, a university student testing program, a student loan project, and a youth programme to train young entrepreneurs. We have also launched more than 300 smaller projects focussing on confl ict mitigation since mid-2010, working with different ethnic groups, and we provide technical and advisory assistance to the government.

European Times: How would you rank Kyrgyzstan as a business base and investment target?

Carey Gordon: The government of the Kyrgyz Republic is very interested in broadening its foreign direct investment

Carey Gordon, USAID Representative

(FDI) base to include more investment from the EU and the US in addition to the investments it receives from Russia, China and other countries. The government welcomes foreign technical expertise as well as fi nancial investment. For Kyrgyzstan to be a success story, it needs commitment and effective coordination between business groups and the government. The government of Kyrgyzstan through many forums seeks to improve the investment climate and it welcomes international assistance to do so. USAID works closely with business associations which are active here, other international donors, and the Development Partners Coor-dination Council, which brings donors together to improve the effectiveness of international assistance. We have very good collaboration with the government, which is actively promoting reforms across many sectors, addressing corrup-tion, and becoming more responsive to business and people’s needs. Of course much work still needs to be done.

European Times: What changes do you expect to see in Kyrgyzstan over the next few years?

Carey Gordon: I am a fi rm optimist about the future here. Kyrgyzstan needs to focus on maintaining political stability, continuing to address corruption, improving government effi ciency and improving the legal system. International investors should come to Kyrgyzstan to see for themselves. This is a beautiful country with many opportunities and a government which seeks investment and partnerships.

25

THE EUROPEAN TIMES

International Financial Institutions

THE EUROPEAN TIMES

EBRD Bullish on KyrgyzstanLarisa Manastirli, Head of EBRD

Resident Offi ce in Kyrgyzstan, discusses

the bank’s local projects and goals.

European Times: What are the EBRD’s activities in Kyrgyzstan?

Larisa Manastirli: We have launched 87 projects so far with a combined budget of more than €414 million. Our latest country strategy focuses on four key areas: critical infrastructure, the fi nancial sector, private enterprise, and policy reforms. Concerning municipal infrastructure, the EBRD provided its fi rst loan to the municipality of Bishkek and the Bishkek Water Company to enhance the city’s water-supply network back in 2009. Since that time we have built quite a strong pipeline of projects for the municipal sector in the fi elds of water supply, waste-management and public transport, among others. We have already committed to two more water-system projects in southern Kyr-gyzstan and we plan to fi nance new trolley busses for Bishkek. We want to cover the whole country.

European Times: What about the fi nancial sector?

Larisa Manastirli: The EBRD is probably the biggest private investor in this sector in Kyrgyzstan. We are working with eight institutions, including commercial banks and micro-fi nance organisations. We are shareholders and lenders for KICB and Demir Bank, the largest private banks in the country. Concern-ing micro-fi nancing, which is very important in Kyrgyzstan, we are promoting better supervision, con-solidation and responsible lending practices. The EBRD was also the

Larisa Manastirli, Head of EBRD Resident Offi ce in Kyrgyzstan

fi rst international fi nancial institution to provide loans in the local currency, and we are working with the National Bank to develop a local capital market.

European Times: What kinds of support do you provide the private sector?

Larisa Manastirli: We are working with companies in every sector of the economy. We are trying to show the Kyrgyz authorities that the way they treat foreign investors will infl uence other potential investors. The private sector has been plagued by problems, but many companies are operating to high standards and also giving back to local communities. Kyrgyzstan needs to promote such companies. The EBRD sees great potential in mining, agricul-ture and agro-processing, the energy

sector, tourism, manufacturing and many other areas.

European Times: How does the EBRD support the government?

Larisa Manastirli: We work with different institutions to improve regula-tory frameworks and the overall business climate in Kyrgyzstan. We encourage public-private partnerships.

European Times: Why should European investors target Kyrgyzstan?

Larisa Manastirli: Kyrgyzstan has enormous potential and many brilliant investment opportunities which offer great growth rates you will not see in matured economies. There are risks here, but the returns are higher.

THE EUROPEAN TIMES

USAID Long-Term Partner for Kyrgyz Private Sector

Carey Gordon, the US Agency for International Development

(USAID) Representative, discusses USAID’s programmes in

Kyrgyzstan.

European Times: Can you tell us about USAID’s activities?

Carey Gordon: USAID has been active in Kyrgyzstan since the country’s independence and has launched a range of programmes with different partners over the years. The average budget is around €30-45 million per year. USAID programmes are involved in four major areas: economic growth, rule of law and governance, public health, and education. Unlike many other donors, USAID does not offer direct budget support to the host government. However we work closely with the government of the Kyrgyz Republic, with private organisations, either profi t or non-profi t and with other donors.

European Times: What are some of your specifi c projects?

Carey Gordon: On the economic front we are involved in key sectors like energy and agriculture as well as gov-ernment-private sector relations and on various economic policy matters such as trade, taxation and licensing. We also promote good governance, judicial reform and the strength-ening of non-governmental organisations. Concerning healthcare we are involved in the fi ght against HIV/AIDS and tuberculosis and in the government’s mother-and-child health campaign. Finally, we support the American University of Central Asia, a university student testing program, a student loan project, and a youth programme to train young entrepreneurs. We have also launched more than 300 smaller projects focussing on confl ict mitigation since mid-2010, working with different ethnic groups, and we provide technical and advisory assistance to the government.

European Times: How would you rank Kyrgyzstan as a business base and investment target?

Carey Gordon: The government of the Kyrgyz Republic is very interested in broadening its foreign direct investment

Carey Gordon, USAID Representative

(FDI) base to include more investment from the EU and the US in addition to the investments it receives from Russia, China and other countries. The government welcomes foreign technical expertise as well as fi nancial investment. For Kyrgyzstan to be a success story, it needs commitment and effective coordination between business groups and the government. The government of Kyrgyzstan through many forums seeks to improve the investment climate and it welcomes international assistance to do so. USAID works closely with business associations which are active here, other international donors, and the Development Partners Coor-dination Council, which brings donors together to improve the effectiveness of international assistance. We have very good collaboration with the government, which is actively promoting reforms across many sectors, addressing corrup-tion, and becoming more responsive to business and people’s needs. Of course much work still needs to be done.

European Times: What changes do you expect to see in Kyrgyzstan over the next few years?

Carey Gordon: I am a fi rm optimist about the future here. Kyrgyzstan needs to focus on maintaining political stability, continuing to address corruption, improving government effi ciency and improving the legal system. International investors should come to Kyrgyzstan to see for themselves. This is a beautiful country with many opportunities and a government which seeks investment and partnerships.

26

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

Ministry of Finance Overseeing Ambitious Reform MeasuresDeputy Minister of Finance Mirlan

Baigonchokov has a sound experience of

working with the Ministry of Finance since

1995 and was appointed Deputy Minister

of Finance in 2010. He discusses the

government’s current fi nancial-sector goals.

Mirlan Baigonchokov, Deputy Minister of Finance

European Times: What are the priorities of the Ministry of Finance?

Mirlan Baigonchokov: Our focus is on supporting the government’s mission of maintaining macroeconomic and political stability and continuing the process of liberal reforms. Since inde-pendence, Kyrgyzstan has seen major reforms in the public sector including the fi nancial sector. A major accomplish-ment is that we have optimised public spending and made it effi cient.

In 2008 we began a successful three-year budget programme under the supervi-sion of the World Bank and the IMF. We are currently working with the IMF in a programme targeting microeconomic stability up to 2014 that includes control-ling infl ation, achieving budget consolida-tion, reducing external debt and continued reforms of the banking sector. Our main priority is to continue to reduce the budget defi cit through effective management of the national budget. We also want to speed up reforms and further increase the effi -ciency of the public fi nance management.

Finance

• National Bank Chairman Reports Impressive Banking-Sector Growth Rates

• Financial Sector Performing Well

“We have a liberal investment climate, and foreign investors

have access to all sectors.”Mirlan Baigonchokov, Deputy Minister of Finance

27

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Ministry of Finance Overseeing Ambitious Reform MeasuresDeputy Minister of Finance Mirlan

Baigonchokov has a sound experience of

working with the Ministry of Finance since

1995 and was appointed Deputy Minister

of Finance in 2010. He discusses the

government’s current fi nancial-sector goals.

Mirlan Baigonchokov, Deputy Minister of Finance

European Times: What are the priorities of the Ministry of Finance?

Mirlan Baigonchokov: Our focus is on supporting the government’s mission of maintaining macroeconomic and political stability and continuing the process of liberal reforms. Since inde-pendence, Kyrgyzstan has seen major reforms in the public sector including the fi nancial sector. A major accomplish-ment is that we have optimised public spending and made it effi cient.

In 2008 we began a successful three-year budget programme under the supervi-sion of the World Bank and the IMF. We are currently working with the IMF in a programme targeting microeconomic stability up to 2014 that includes control-ling infl ation, achieving budget consolida-tion, reducing external debt and continued reforms of the banking sector. Our main priority is to continue to reduce the budget defi cit through effective management of the national budget. We also want to speed up reforms and further increase the effi -ciency of the public fi nance management.

Finance

28

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

European Times: How has Kyrgyzstan coped with the global fi nancial crisis?

Mirlan Baigonchokov: The financial sector has proved generally stable. While some commercial banks had liquidity problems, this helped us to identify some improvements we needed to make in our financial-sector legislation, and we have addressed this through reforms. In 2000, for instance, we had a budget deficit of 9% of GDP, and we managed to reduce this to 5% of GDP in 2011. Our target is to continue to lower the budget deficit to 3%. We also reduced inflation from 20% in 2010 to 9% in 2011; we expect the total for 2012 to be around 8%. We reduced our external debt from 130% of GDP in 1990 to 47.7% in 2011 thanks to reforms.

“We have a liberal investment

climate, and foreign investors have

access to all sectors.”

European Times: How would you describe the investment climate in Kyrgyzstan?

Mirlan Baigonchokov: Kyrgyzstan has been steadily improving its ranking in the World Bank’s Doing Business Report through further improving the business climate. We have a liberal investment climate, and foreign investors have access to all sectors. The legislation that protects investors’ interests was adopted. Kyrgyzstan offers significant investment opportunities, for example through the privatisation of state-owned companies and creating a system for public-private partnerships. We welcome foreign investors.

THE EUROPEAN TIMES

Commercial bank KYRGYZSTAN

Prosperous Kyrgyz Bank Open to EU Partnerships

‘Commercial bank KYRGYZSTAN’ OJSC, launched in 1988,

is one of the country’s oldest banks. With an extensive network

of 80 branches and a diverse portfolio of services, ‘Commercial

bank KYRGYZSTAN’ today is the largest bank with private

domestic capital in the country.

Muras Rysbekovich Kachkeev, Chairman, explains, “We are a top partner for corporate clients as well as for indi-vidual clients, including SMEs, large companies, private entrepreneurs and individuals. Our mission is to provide every customer with banking services of any kind throughout the country.” The bank aims to reach €3.2 million (KGS200 million) in profi ts in 2012, a signifi cant increase over the 2011 total of €2.2 million (KGS135 million).

Ambitious growth strategies

Under new leadership since 2009, ‘Commercial bank KYR-GYZSTAN’ has changed its focus to a more diversifi ed portfolio and has ambitious development strategies for 2012 to 2014. “Over the past three years, we have introduced a state-of-the-art automatic banking system, expanded the range of services and greatly improved our risk management, among other advances,” Muras Kachkeev points out.

As for the future, ‘Commercial bank KYRGYZSTAN’ is open to partnerships with European investors and banking groups. Muras Kachkeev concludes, “Kyrgyzstan’s banking sector offers excellent growth potential and ‘Commercial bank KYR-GYZSTAN’ aims to be the number one bank in the country.”

Togolok Moldo st. 54 a - BishkekTel: + 996 312 615 364

bankkg@bankkg.kg - www.cbk.kg

THE EUROPEAN TIMES

National Bank Chairman Reports Impressive Banking-Sector Growth Rates Zina Mukaevna Asankojoeva, Chairman

of the National Bank of the Kyrgyz

Republic, discusses recent developments in

the country’s banking sector.

European Times: Can you give an overview of the Kyrgyz Republic’s banking sector?

Zina Asankojoeva: There are now 22 commercial banks in the Kyrgyz Republic, in 14 of which foreign capital is represented, and we have an extensive network of more than 860 bank branches located in all regions of the country. Foreign banks in our market include subsidiaries of such banks as UniCredit Group (Italy), Halyk Bank (Kazakhstan) and Kaz-kommertsbank (Kazakhstan), as well as a branch of the National Bank of

Zina Mukaevna Asankojoeva, Chairman National Bank

Pakistan. Overall, foreign partici-pation in the capital of the Kyrgyz banking system totals 36% of all paid-up nominal capital. All banks are universal and provide a full range of services.

European Times: What about banking assets and returns?

Zina Asankojoeva: The Kyrgyz banking sector is stable and steadily developing, and has established a safety cushion to deal with potential internal and external shocks. Banking assets total around €1.3 trillion and

29

THE EUROPEAN TIMESTHE EUROPEAN TIMES

National Bank Chairman Reports Impressive Banking-Sector Growth Rates Zina Mukaevna Asankojoeva, Chairman

of the National Bank of the Kyrgyz

Republic, discusses recent developments in

the country’s banking sector.

European Times: Can you give an overview of the Kyrgyz Republic’s banking sector?

Zina Asankojoeva: There are now 22 commercial banks in the Kyrgyz Republic, in 14 of which foreign capital is represented, and we have an extensive network of more than 860 bank branches located in all regions of the country. Foreign banks in our market include subsidiaries of such banks as UniCredit Group (Italy), Halyk Bank (Kazakhstan) and Kaz-kommertsbank (Kazakhstan), as well as a branch of the National Bank of

Zina Mukaevna Asankojoeva, Chairman National Bank

Pakistan. Overall, foreign partici-pation in the capital of the Kyrgyz banking system totals 36% of all paid-up nominal capital. All banks are universal and provide a full range of services.

European Times: What about banking assets and returns?

Zina Asankojoeva: The Kyrgyz banking sector is stable and steadily developing, and has established a safety cushion to deal with potential internal and external shocks. Banking assets total around €1.3 trillion and

Finance

30

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

grew by 16.5% in 2012, while the deposit base grew by 24.7% and the total loan portfolio grew by 14.2%. These growth rates demonstrate the great capacity of our banking system. Our non-banking financial segment, specifically micro-financing institutions, is also growing rapidly.

“The Kyrgyz banking sector is stable and steadily

developing”European Times: What are some of the National Bank’s current projects?

Zina Asankojoeva: One of our current projects is to develop a new banking code, which should be fi nalised in 2013. The code will strengthen the legal framework for banking in the country, eliminate any inconsistencies and contradictions, institute clearer legislation, and defi ne legal relationships in the banking sector. We have almost fi nished a big initiative to bring Kyrgyzstan’s payment system up to international standards. The National Bank is also one of the key players in the government’s programme to increase the share of non-cash payments and settlements, and we are playing a leading role in combating money-laundering and terrorism-fi nancing.

European Times: What are the National Bank’s priorities for the next fi ve years?

Zina Asankojoeva: Our main goal, as the country’s central bank, is to maintain inflation at single-digit levels in the medium term through following an appropri-ate monetary policy. Other key tasks include develop-ing financial markets, promoting increased competition in the banking sector, and strengthening our financial sector overall.

European Times: Why should international fi nancial-sector investors choose the Kyrgyz Republic?

Zina Asankojoeva: Our country’s legislation meets international standards, including the possibility for free movement of capital and a lack of restrictions on the volume of foreign-currency transactions and conversion deals. We have relatively small requirements of around €10 million for initial capital formation, and the Kyrgyz Republic offers quite high returns on investment.

THE EUROPEAN TIMES

Mol Bulak Finance

Microfi nance Leader Helping to Build Tomorrow’s KyrgyzstanMol Bulak Finance has grown from an initial capital of around

€46,700 to reach over €23.5 million in equity and is now

ranked Kyrgyzstan’s market leader in equity size.

Serving over 100,000 customers from 112 offi ces throughout the country, Mol Bulak Finance was established by Kyrgyz citizens for Kyrgyz citizens and is the preferred fi nancial-services partner for a wide range of customers.

CEO Babur Tolbaev explains, “We have a loan portfolio of €43.9 million and provide credit services to groups as well as indi-viduals. We always put our clients fi rst, and our dynamic manage-

ment team has many years of experience in Central Asia’s microfi nance sector.” Mol Bulak has earned a stellar reputa-tion for helping its customers develop sustainable, productive business ventures.

One of Mol Bulak’s successful projects is MBF-Farm, for which Mol Bulak created a special online programme that helps boost productivity, reduce costs and expand the company’s client base. Another success story is Mol Bulak Fashion Week, for the third time held in November 2012, to showcase Kyrgyz designers and to support Kyrgyzstan’s rapidly growing textile and fashion sectors. Babur Tolbaev concludes, “These are just two examples of programmes we run in order to ensure community development and to help spur on the growth of Kyrgyzstan’s high-potential economy. We are open for inter-national investors to support us in achieving our mission.”

KYGRYSTAN

Abai st. 48a - 720017 BishkekTel: +996 312 979 695

bishkek@molbulakfi nance.kg - www.mbf.kg

Babur Tolbaev, CEO

THE EUROPEAN TIMES

Financial Sector Performing WellThe Kyrgyz Republic has a strong and well-developed fi nancial

sector which includes nine foreign banks and a rapidly growing

microfi nance segment. As of June 2012, the Kyrgyz Republic

had 22 commercial banks and 264 branches of commercial

banks. The local economy is primarily cash-based, although

non-cash consumer transactions, such as debit cards, have been

growing in recent years and the fi nancial-services sector overall

offers signifi cant investment opportunities.

Entirely foreign-owned banks currently operating in the Kyrgyz Republic are Demir Bank, the Bank of Asia, the National Bank of Pakistan, Halyk Bank, Kazcommerce Bank Kyrgyzstan, FinanceCredit Bank and UniCredit Bank. Other banks are partially foreign-held, such as Manas Bank and Kyrgyz Investment and Credit Bank, whose shareholders include the EBRD. The National Bank of Kyrgyzstan took control of Asia Universal Bank following the revolution of April 2010 and reor-ganised it as Zalkar Bank, which is set for privatisation.

The financial sector is overseen by the independent National Bank of Kyrgyzstan, which regularly inter-venes in the local market to stabilise the Kyrgyz som. The Kyrgyz Stock Exchange was formed in 1994 and began trading in 1995. The Kyrgzy Stock Exchange Press Club, which has a web site available in English, provides up-to-date information about the stock market and about economic issues in the Kyrgyz Republic.

Meeting international standards

The financial sector is steadily being upgraded through new regulations. Since 2008, new banks must meet a minimum charter-capital requirement of around €9.8 million. Banks must also maintain a 10% reserve with the National Bank of Kyrgyzstan, and a deposit-insur-ance system protects individual investors. With the support of the government and international organisa-tions, accounting systems in banks and enterprises are being converted to international standards.

The banking system is performing well. According to the National Bank of Kyrgyzstan, the banking sector achieved total net gains of over €16 million in the first

half of 2012 and boosted total assets by 13.5% to reach €1.1 billion. The banking system’s total deposits stood at €777 million in June 2012, a 20.4% increase over the January 2012 total, while loan activity also rose. Return on assets reached 2.7% and return on equity rose to 16.9% over the same period.

To keep this positive performance on track, the Kyrgyz Republic has launched the Financial Sector Development Project, supported by the World Bank. Its aims are to enhance fi nancial sector stability and increase access to fi nancial services throughout the country. The project has four components: strengthening the legal, regulatory, and supervisory framework for banks, micro-fi nance organi-sations and credit unions; expanding fi nancial services via Kyrgyz Post Offi ce’s network; supporting Aiyl Bank’s privatisation and deposit mobilisation; and modernising moveable collateral and debt-resolution regimes.

© Mariash-Dreamstime.com

31

THE EUROPEAN TIMES

Finance

THE EUROPEAN TIMES

Financial Sector Performing WellThe Kyrgyz Republic has a strong and well-developed fi nancial

sector which includes nine foreign banks and a rapidly growing

microfi nance segment. As of June 2012, the Kyrgyz Republic

had 22 commercial banks and 264 branches of commercial

banks. The local economy is primarily cash-based, although

non-cash consumer transactions, such as debit cards, have been

growing in recent years and the fi nancial-services sector overall

offers signifi cant investment opportunities.

Entirely foreign-owned banks currently operating in the Kyrgyz Republic are Demir Bank, the Bank of Asia, the National Bank of Pakistan, Halyk Bank, Kazcommerce Bank Kyrgyzstan, FinanceCredit Bank and UniCredit Bank. Other banks are partially foreign-held, such as Manas Bank and Kyrgyz Investment and Credit Bank, whose shareholders include the EBRD. The National Bank of Kyrgyzstan took control of Asia Universal Bank following the revolution of April 2010 and reor-ganised it as Zalkar Bank, which is set for privatisation.

The financial sector is overseen by the independent National Bank of Kyrgyzstan, which regularly inter-venes in the local market to stabilise the Kyrgyz som. The Kyrgyz Stock Exchange was formed in 1994 and began trading in 1995. The Kyrgzy Stock Exchange Press Club, which has a web site available in English, provides up-to-date information about the stock market and about economic issues in the Kyrgyz Republic.

Meeting international standards

The financial sector is steadily being upgraded through new regulations. Since 2008, new banks must meet a minimum charter-capital requirement of around €9.8 million. Banks must also maintain a 10% reserve with the National Bank of Kyrgyzstan, and a deposit-insur-ance system protects individual investors. With the support of the government and international organisa-tions, accounting systems in banks and enterprises are being converted to international standards.

The banking system is performing well. According to the National Bank of Kyrgyzstan, the banking sector achieved total net gains of over €16 million in the first

half of 2012 and boosted total assets by 13.5% to reach €1.1 billion. The banking system’s total deposits stood at €777 million in June 2012, a 20.4% increase over the January 2012 total, while loan activity also rose. Return on assets reached 2.7% and return on equity rose to 16.9% over the same period.

To keep this positive performance on track, the Kyrgyz Republic has launched the Financial Sector Development Project, supported by the World Bank. Its aims are to enhance fi nancial sector stability and increase access to fi nancial services throughout the country. The project has four components: strengthening the legal, regulatory, and supervisory framework for banks, micro-fi nance organi-sations and credit unions; expanding fi nancial services via Kyrgyz Post Offi ce’s network; supporting Aiyl Bank’s privatisation and deposit mobilisation; and modernising moveable collateral and debt-resolution regimes.

© Mariash-Dreamstime.com

32

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

32

Baitushum and PartnersInnovative Microfi nance Institution Now Offering Full Banking ServicesBaitushum and Partners, founded in 1997 as a USAID project

to support Kyrgyzstan’s agriculture sector, has been steadily

developing new products and services and in 2009 the company

achieved the fi rst equity investment in Central Asia.

Now serving around 30,000 customers, Baitushum and Partners transformed itself from a microfi nance institution into a licensed bank this year and has very ambitious goals for the future. It aims to increase its loan portfolio from the current €48.8 million (KGS3 billion) to €144.8 million (KGS9 billion) by the end of 2016.

Gulnara Shamshieva, Chairman, explains, “We decided to establish our own bank, diversify our products and services and revise our cost structure to make our products more affordable in order to better serve our customers. In 2011 we became the fi rst micro-fi nancing institution licensed to accept deposits as well as provide loans. Now that we are a licensed bank, we are steadily expanding our product portfolio.” Baitushum and Partners is known for its world-class standards and transparency, and it has the strong support of its institutional shareholders.

The bank focusses primarily on providing loans averaging around €1,522 (US$2,055) to entrepreneurs in many sectors, although around half of the bank’s business involves the agri-culture sector. With the expansion of our loans to small and medium-sized businesses, the average loan amount will increase. Defi ning the advantages of working with Baitushum and Partners instead of with a standard commercial bank, Gulnara Shamshieva says, “We are more fl exible than a big commercial bank and we are willing to serve all kinds of clients, including clients with small businesses in rural areas. We believe that clients like these deserve the same products and services as any customer anywhere.”

New mobile-banking services

Baitushum and Partners has built up a network of seven branches and 27 cash points, and plans to expand this to 11 branches and 44 cash points in 2013. The bank also aims to launch an innovative mobile-banking service. “We want to be much closer to our clients and at the same time we have to manage our operational costs, so we are investing in new IT

technology,” Gulnara Shamshieva explains. She adds that the bank is planning to expand a leasing service that will be particu-larly useful for farmers. She praises the potential of Kyrgyzstan’s private sector and urges international investors and partners to come to the country and see for themselves all the opportunities awaiting them there.

Umetaliev st. 76 - Bishkek - Tel: +996 312 900 464 baitushum@baitushum.kg - www.baitushum.kg

M I C R O F I N A N C E B A N K

xxxxxx

Gulnara Shamshieva, Chairman

33

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Baitushum and PartnersInnovative Microfi nance Institution Now Offering Full Banking ServicesBaitushum and Partners, founded in 1997 as a USAID project

to support Kyrgyzstan’s agriculture sector, has been steadily

developing new products and services and in 2009 the company

achieved the fi rst equity investment in Central Asia.

Now serving around 30,000 customers, Baitushum and Partners transformed itself from a microfi nance institution into a licensed bank this year and has very ambitious goals for the future. It aims to increase its loan portfolio from the current €48.8 million (KGS3 billion) to €144.8 million (KGS9 billion) by the end of 2016.

Gulnara Shamshieva, Chairman, explains, “We decided to establish our own bank, diversify our products and services and revise our cost structure to make our products more affordable in order to better serve our customers. In 2011 we became the fi rst micro-fi nancing institution licensed to accept deposits as well as provide loans. Now that we are a licensed bank, we are steadily expanding our product portfolio.” Baitushum and Partners is known for its world-class standards and transparency, and it has the strong support of its institutional shareholders.

The bank focusses primarily on providing loans averaging around €1,522 (US$2,055) to entrepreneurs in many sectors, although around half of the bank’s business involves the agri-culture sector. With the expansion of our loans to small and medium-sized businesses, the average loan amount will increase. Defi ning the advantages of working with Baitushum and Partners instead of with a standard commercial bank, Gulnara Shamshieva says, “We are more fl exible than a big commercial bank and we are willing to serve all kinds of clients, including clients with small businesses in rural areas. We believe that clients like these deserve the same products and services as any customer anywhere.”

New mobile-banking services

Baitushum and Partners has built up a network of seven branches and 27 cash points, and plans to expand this to 11 branches and 44 cash points in 2013. The bank also aims to launch an innovative mobile-banking service. “We want to be much closer to our clients and at the same time we have to manage our operational costs, so we are investing in new IT

technology,” Gulnara Shamshieva explains. She adds that the bank is planning to expand a leasing service that will be particu-larly useful for farmers. She praises the potential of Kyrgyzstan’s private sector and urges international investors and partners to come to the country and see for themselves all the opportunities awaiting them there.

Umetaliev st. 76 - Bishkek - Tel: +996 312 900 464 baitushum@baitushum.kg - www.baitushum.kg

M I C R O F I N A N C E B A N K

xxxxxx

Gulnara Shamshieva, Chairman

Energy & Mining

• Energy Ministry Focussing on Hydropower, Transmission Network

• Mining and Energy Driving Kyrgyz Economy

• Harnessing Vast Energy Resources to Power the Future

“Our goal for the near future is for Kyrgyzstan to have its own transmission lines and to be

energy-independent.”Avtandil Kalmambetov, Minister of Industry, Energy and

Fuel Resources

34

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

34

Energy Ministry Focussing on Hydropower, Transmission Network

Avtandil Kalmambetov, Minister of Industry, Energy and Fuel

Resources, discusses key energy-sector projects now underway.

European Times: What are the Ministry’s responsi-bilities for the energy sector?

Avtandil Kalmambetov: The Ministry helps develop energy policies and regulations and works to ensure reliable power supplies throughout the country. We oversee the pro-duction, distribution and transmission of electricity and we are also in charge of Bishkek’s heating system as well as overseeing utility companies and electricity-generation units. We ensure gas is supplied to customers by Kyrgyz Gas, and we oversee the country’s production and distribu-tion of around 1.3 billion tonnes of coal annually. Before independence, Kyrgyzstan had around 100 power-produc-tion units; now we have around 60, most of which have been privatised.

European Times: What are some of your current priorities?

Avtandil Kalmambetov: We are focussing on devel-oping hydropower plants. Kyrgyzstan’s hydropower potential is an impressive 142 billion kWh, and only 10% of this is currently being exploited. Our plants date from the 1960s and new technologies and modernisation are urgently needed. For the future of the energy sector, we are interested in building a new hydropower plant, Kambarata 1, and a dam on the upper Narin River. Kambarata 1 will have an installed capacity of 1900 MW and should produce around 5.1 billion kWh per year. This project will create around 18,000 jobs, help Kyrgyzstan achieve energy independence, and provide energy for export.

European Times: Are you also developing Kyrgyzstan’s transmission infrastructure?

Avtandil Kalmambetov: We have launched a project to build and install high-voltage transmission lines throughout the country. At present we are still transport-ing our electricity via lines located in Uzbek territory.

Avtandil Kalmambetov, Minister of Industry, Energy and Fuel Resources

Our goal for the near future is for Kyrgyzstan to have its own transmission lines and to be energy-independent. We have already begun the modernisation of our energy infrastructure around Bishkek and we want to extend this modernisation throughout the country with the help of investors and partners.

European Times: What about regional energy initiatives?

Avtandil Kalmambetov: Kyrgyzstan is very interested in cooperating with our neighbours in regional energy projects. We already have a strong energy-sector partnership with Kazakhstan, and through our involvement in CASA-1000, we plan on playing a key role in developing Central Asia’s energy sector. As the world’s energy resources decrease, we believe that all countries must think proactively and work together to ensure adequate supplies of energy in the future.

THE EUROPEAN TIMES

Centerra Gold Inc.

Mining Operation Serves as Benchmark in Kyrgyz Economy“The story of Kumtor is very much

the story of the Kyrgyz Republic,”

explains Michael Fischer, President of

Kumtor Operating Company. Kumtor

Operating Company was launched in

1992 by Cameco Corporation, which

had been introduced to the Kumtor gold

deposit in Kyrgyzstan while looking for

uranium properties in the country. Gold

production at Kumtor began in 1997

and Centerra Gold was formed in 2004

acquiring all the gold assets of Cameco.

Today, Centerra Gold’s Kumtor mine in

Kyrgyzstan is the biggest western-owned

gold mine in Central Asia, producing

around 600,000 ounces of gold per year.

The mine produced a total of 260.7

tonnes of gold between 1997 and 2011.

Kyrgyzaltyn JSC, which is controlled by the Kyrgyz government, has a 33% share in the equity of Centerra Gold. The Kumtor Mine, which plays a major role in the national economy, is owned 100% by Centerra Gold. Michael Fischer explains, “In 2011, Kumtor accounted for around 25% of Kyrgyzstan’s indus-trial output, 12% of its GDP and 50% of its export revenues. In addition, Kumtor directly employs more than 2,700 people, 95% of whom are Kyrgyz Nationals, as well as 1,000 contractors.”

The mine is operated according to the highest international environmental and safety standards; in fact, its safety record surpasses that of most mines worldwide, including mines in North America.

Michael Fischer says, “We are very proud of our environmental footprint and safety systems, and we use the most up-to-date truck fl eet in the world to move over half a million tonnes of material every day.”

Production at the mine is planned until 2021, but Kumtor is committed to ensuring that the surrounding area will continue to develop sustainably even after the mine is closed. The mine’s employees are being trained in skills which will help them fi nd good jobs anywhere in the future, and Kumtor supports a number of local corporate-social-responsibility ini-tiatives, including donating 1% of its gross monthly revenues to the Issyk-Kul Devel-opment Fund. In 2011, Kumtor provided €10.4 million (KGS 636 million) to the fund for more than 300 projects, including ones involving local farmers. In addition, Kumtor also funds three micro-credit operations, as well as, educational projects, including a business-training initiative in partnership with the EBRD. One of Kumtor’s projects is ‘School 27’ in Bishkek, an apprenticeship program for disadvan-taged young people. Also, in 2012, Kumtor

signed an agreement with the Kyrgyz Government to fund €16 million (US$21 million) into a national micro-credit fi nancing program to provide fi nancing for small sustainable development projects throughout the Kyrgyz Republic.

Kumtor not only serves as a benchmark in Kyrgyzstan’s private sector; it also demonstrates the strong investment potential of the Kyrgyz economy. As Michael Fischer explains, “If interna-tional investors want to see what can be accomplished in this country, they should take a close look at Kumtor.”

Centerra Gold Inc.1 University Avenue, Suite 1500

Toronto, Ontario, M5J 2P1Canada

Tel: +1 416 204 1953info@centerragold.comwww.centerragold.com

35

THE EUROPEAN TIMES

Energy & Mining

THE EUROPEAN TIMES

Energy Ministry Focussing on Hydropower, Transmission Network

Avtandil Kalmambetov, Minister of Industry, Energy and Fuel

Resources, discusses key energy-sector projects now underway.

European Times: What are the Ministry’s responsi-bilities for the energy sector?

Avtandil Kalmambetov: The Ministry helps develop energy policies and regulations and works to ensure reliable power supplies throughout the country. We oversee the pro-duction, distribution and transmission of electricity and we are also in charge of Bishkek’s heating system as well as overseeing utility companies and electricity-generation units. We ensure gas is supplied to customers by Kyrgyz Gas, and we oversee the country’s production and distribu-tion of around 1.3 billion tonnes of coal annually. Before independence, Kyrgyzstan had around 100 power-produc-tion units; now we have around 60, most of which have been privatised.

European Times: What are some of your current priorities?

Avtandil Kalmambetov: We are focussing on devel-oping hydropower plants. Kyrgyzstan’s hydropower potential is an impressive 142 billion kWh, and only 10% of this is currently being exploited. Our plants date from the 1960s and new technologies and modernisation are urgently needed. For the future of the energy sector, we are interested in building a new hydropower plant, Kambarata 1, and a dam on the upper Narin River. Kambarata 1 will have an installed capacity of 1900 MW and should produce around 5.1 billion kWh per year. This project will create around 18,000 jobs, help Kyrgyzstan achieve energy independence, and provide energy for export.

European Times: Are you also developing Kyrgyzstan’s transmission infrastructure?

Avtandil Kalmambetov: We have launched a project to build and install high-voltage transmission lines throughout the country. At present we are still transport-ing our electricity via lines located in Uzbek territory.

Avtandil Kalmambetov, Minister of Industry, Energy and Fuel Resources

Our goal for the near future is for Kyrgyzstan to have its own transmission lines and to be energy-independent. We have already begun the modernisation of our energy infrastructure around Bishkek and we want to extend this modernisation throughout the country with the help of investors and partners.

European Times: What about regional energy initiatives?

Avtandil Kalmambetov: Kyrgyzstan is very interested in cooperating with our neighbours in regional energy projects. We already have a strong energy-sector partnership with Kazakhstan, and through our involvement in CASA-1000, we plan on playing a key role in developing Central Asia’s energy sector. As the world’s energy resources decrease, we believe that all countries must think proactively and work together to ensure adequate supplies of energy in the future.

THE EUROPEAN TIMES

Centerra Gold Inc.

Mining Operation Serves as Benchmark in Kyrgyz Economy“The story of Kumtor is very much

the story of the Kyrgyz Republic,”

explains Michael Fischer, President of

Kumtor Operating Company. Kumtor

Operating Company was launched in

1992 by Cameco Corporation, which

had been introduced to the Kumtor gold

deposit in Kyrgyzstan while looking for

uranium properties in the country. Gold

production at Kumtor began in 1997

and Centerra Gold was formed in 2004

acquiring all the gold assets of Cameco.

Today, Centerra Gold’s Kumtor mine in

Kyrgyzstan is the biggest western-owned

gold mine in Central Asia, producing

around 600,000 ounces of gold per year.

The mine produced a total of 260.7

tonnes of gold between 1997 and 2011.

Kyrgyzaltyn JSC, which is controlled by the Kyrgyz government, has a 33% share in the equity of Centerra Gold. The Kumtor Mine, which plays a major role in the national economy, is owned 100% by Centerra Gold. Michael Fischer explains, “In 2011, Kumtor accounted for around 25% of Kyrgyzstan’s indus-trial output, 12% of its GDP and 50% of its export revenues. In addition, Kumtor directly employs more than 2,700 people, 95% of whom are Kyrgyz Nationals, as well as 1,000 contractors.”

The mine is operated according to the highest international environmental and safety standards; in fact, its safety record surpasses that of most mines worldwide, including mines in North America.

Michael Fischer says, “We are very proud of our environmental footprint and safety systems, and we use the most up-to-date truck fl eet in the world to move over half a million tonnes of material every day.”

Production at the mine is planned until 2021, but Kumtor is committed to ensuring that the surrounding area will continue to develop sustainably even after the mine is closed. The mine’s employees are being trained in skills which will help them fi nd good jobs anywhere in the future, and Kumtor supports a number of local corporate-social-responsibility ini-tiatives, including donating 1% of its gross monthly revenues to the Issyk-Kul Devel-opment Fund. In 2011, Kumtor provided €10.4 million (KGS 636 million) to the fund for more than 300 projects, including ones involving local farmers. In addition, Kumtor also funds three micro-credit operations, as well as, educational projects, including a business-training initiative in partnership with the EBRD. One of Kumtor’s projects is ‘School 27’ in Bishkek, an apprenticeship program for disadvan-taged young people. Also, in 2012, Kumtor

signed an agreement with the Kyrgyz Government to fund €16 million (US$21 million) into a national micro-credit fi nancing program to provide fi nancing for small sustainable development projects throughout the Kyrgyz Republic.

Kumtor not only serves as a benchmark in Kyrgyzstan’s private sector; it also demonstrates the strong investment potential of the Kyrgyz economy. As Michael Fischer explains, “If interna-tional investors want to see what can be accomplished in this country, they should take a close look at Kumtor.”

Centerra Gold Inc.1 University Avenue, Suite 1500

Toronto, Ontario, M5J 2P1Canada

Tel: +1 416 204 1953info@centerragold.comwww.centerragold.com

36

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

36

Mining and Energy Driving Kyrgyz EconomyThe Kyrgyz Republic’s exceptional

natural resources include gold and other

minerals as well as extensive hydropower

potential, and the energy and mining

sectors are key drivers of the Kyrgyz

economy. Mining contributes around

10% of the Kyrgyz Republic’s GDP

and 26% of total tax revenues as well

as 50% of the country’s export earnings,

while the energy sector accounts for

around 3.9% of GDP and 16% of

total industrial production.

The government has placed a high priority on continuing to develop both sectors with the help of international investors. As Temir Sariev, Minister of Economy, explains, “We under-stand that global demand for mineral resources will continue to increase each year, thus we consider the mining industry a priority sector for us, along with the power sector.”

Both sectors face challenges which the Kyrgyz government is working hard to alleviate. The government has instituted new mining legisla-tion and mineral-licensing pro-cedures, including the Extractive Industries Transparency Initiative, to bring the Kyrgyz Republic’s mining laws in line with interna-tional standards. In addition, the government now holds auctions or tenders to sell licenses for mineral-resources development and requires feasibility studies and community-service initiatives (including local job creation and training as well as infrastructure development) for

all new mining projects. Investors in mining initiatives are protected by law.

“We consider the mining industry a priority sector

for us, along with the power sector.”

National mining company Kyrgyzaltyn owns licenses to operate the Makmal, Terek-Saj, and Solton-Sary gold deposits, owns a gold refi nery in Kara-Beldy, and participates in several joint ventures. Canadian mining company Centerra Gold, in which the government has a 33% share, operates the Kumtor Mine, which accounts for 95% of the Kyrgyz Repub-lic’s gold production; the government plans to hold an IPO to sell at least 25% of its share. Another project in the works is to create a precious-metals exchange.

© IBC

Power losses being reduced

In the energy sector, the Kyrgyz Republic has enormous export potential thanks to its significant hydropower resources, but the sector has been plagued by high commer-cial losses and low tariffs, as well as outdated and inadequate energy infrastructure, energy shortages in winter and governance issues. Progress is being made, however.

In mid-November 2012, Avtandil Kalmambetov, Minister of Energy and Industry, reported that energy losses have been reduced from 36% to 20% and that the Kyrgyz Republic will continue to launch new projects to upgrade the transmission network and open new power stations. The Kyrgyz Republic is also taking an active role in the creation of the Central Asian regional electric power market (CASAREM) and is partici-pating in the ambitious CASA-1000 project.

THE EUROPEAN TIMES

Kyrgyz Komur

High-Potential Coal Industry Welcomes EU InvestorsKyrgyz Komur is playing a leading role

in developing Kyrgyzstan’s high-potential

coal sector. Formed in August 2012, the

company serves as an umbrella organisation

for the country’s many small coal operations.

Asanbek Moldokeev, General Director,

explains, “Having one large coal enterprise

under the supervision of the Ministry of

Energy and Industry means that we can

more easily ensure quality and environmen-

tal standards while also optimising overhead

costs. Kyrgyz Komur handles coal marketing

and management, exports and the imple-

mentation of new technologies.”

Thanks to its extensive coal resources and strategic location in Central Asia, Kyrgyzstan once exported 4.5 million tonnes of coal per year to markets throughout the region, but this total dropped to around 150,000 tonnes with the collapse of the Soviet Union. Now Kyrgyz Komur is helping to turn that around. Asanbek Moldokeev says, “Kyrgyzstan produced 630,000 tonnes of coal in 2010, 840,000 tonnes in 2011 and around 1.2 million tonnes in 2012. Our goal for 2013 is to supply the Bishkek metropolitan area and to make Kyrgyzstan independent of imported coal from Kazakhstan. We aim to bring Kyrgyzstan’s coal exports back up to where they were before.”

High-quality coal at advantageous prices

Kyrgyzstan has confirmed resources of 4.5 billion tonnes of coal with an

additional 6 billion tonnes currently being explored, mainly in the Karakesh and Sulukta areas, and Kyrgyz coal is known for its high quality. Kyrgyz consumers currently use a total of around 2.2 million tonnes per year, so there is strong export potential, particularly since Kyrgyz coal sells for around one-fourth the price of coal available in Afghanistan. Kyrgyz Komur is par-ticularly targeting the Tajikistan and Afghanistan markets as well as China.

The Kyrgyz coal industry needs investment in new technologies and equipment in order to realise its full potential. Kyrgyzstan is already part-nering with companies in South Korea and Russia concerning coal process-ing, and Kyrgyz Komur welcomes the chance to work with investors

Government of Kyrgyz Republic State Enterprise “Kyrgyz Komur”

Ahunbaeva st. 119 – room 234Bishkek

Tel: +996 312 51 1908kyrgyzkomur@mail.ru

xxxxxx

and partners from Europe. Asanbek Moldokeev concludes, “The Kyrgyz coal industry needs around €38.1 million to €45.8 million in investments, for example in new technologies and the construction of railways for coal transport. Our coal companies and the government cannot manage this alone so we need foreign direct invest-ment. Kyrgyzstan offers a pro-business environment and our coal industry has great investment appeal, especially since our coal regions have many other mining resources just waiting to be exploited.”

37

THE EUROPEAN TIMES

Energy & Mining

THE EUROPEAN TIMES

Mining and Energy Driving Kyrgyz EconomyThe Kyrgyz Republic’s exceptional

natural resources include gold and other

minerals as well as extensive hydropower

potential, and the energy and mining

sectors are key drivers of the Kyrgyz

economy. Mining contributes around

10% of the Kyrgyz Republic’s GDP

and 26% of total tax revenues as well

as 50% of the country’s export earnings,

while the energy sector accounts for

around 3.9% of GDP and 16% of

total industrial production.

The government has placed a high priority on continuing to develop both sectors with the help of international investors. As Temir Sariev, Minister of Economy, explains, “We under-stand that global demand for mineral resources will continue to increase each year, thus we consider the mining industry a priority sector for us, along with the power sector.”

Both sectors face challenges which the Kyrgyz government is working hard to alleviate. The government has instituted new mining legisla-tion and mineral-licensing pro-cedures, including the Extractive Industries Transparency Initiative, to bring the Kyrgyz Republic’s mining laws in line with interna-tional standards. In addition, the government now holds auctions or tenders to sell licenses for mineral-resources development and requires feasibility studies and community-service initiatives (including local job creation and training as well as infrastructure development) for

all new mining projects. Investors in mining initiatives are protected by law.

“We consider the mining industry a priority sector

for us, along with the power sector.”

National mining company Kyrgyzaltyn owns licenses to operate the Makmal, Terek-Saj, and Solton-Sary gold deposits, owns a gold refi nery in Kara-Beldy, and participates in several joint ventures. Canadian mining company Centerra Gold, in which the government has a 33% share, operates the Kumtor Mine, which accounts for 95% of the Kyrgyz Repub-lic’s gold production; the government plans to hold an IPO to sell at least 25% of its share. Another project in the works is to create a precious-metals exchange.

© IBC

Power losses being reduced

In the energy sector, the Kyrgyz Republic has enormous export potential thanks to its significant hydropower resources, but the sector has been plagued by high commer-cial losses and low tariffs, as well as outdated and inadequate energy infrastructure, energy shortages in winter and governance issues. Progress is being made, however.

In mid-November 2012, Avtandil Kalmambetov, Minister of Energy and Industry, reported that energy losses have been reduced from 36% to 20% and that the Kyrgyz Republic will continue to launch new projects to upgrade the transmission network and open new power stations. The Kyrgyz Republic is also taking an active role in the creation of the Central Asian regional electric power market (CASAREM) and is partici-pating in the ambitious CASA-1000 project.

THE EUROPEAN TIMES

Kyrgyz Komur

High-Potential Coal Industry Welcomes EU InvestorsKyrgyz Komur is playing a leading role

in developing Kyrgyzstan’s high-potential

coal sector. Formed in August 2012, the

company serves as an umbrella organisation

for the country’s many small coal operations.

Asanbek Moldokeev, General Director,

explains, “Having one large coal enterprise

under the supervision of the Ministry of

Energy and Industry means that we can

more easily ensure quality and environmen-

tal standards while also optimising overhead

costs. Kyrgyz Komur handles coal marketing

and management, exports and the imple-

mentation of new technologies.”

Thanks to its extensive coal resources and strategic location in Central Asia, Kyrgyzstan once exported 4.5 million tonnes of coal per year to markets throughout the region, but this total dropped to around 150,000 tonnes with the collapse of the Soviet Union. Now Kyrgyz Komur is helping to turn that around. Asanbek Moldokeev says, “Kyrgyzstan produced 630,000 tonnes of coal in 2010, 840,000 tonnes in 2011 and around 1.2 million tonnes in 2012. Our goal for 2013 is to supply the Bishkek metropolitan area and to make Kyrgyzstan independent of imported coal from Kazakhstan. We aim to bring Kyrgyzstan’s coal exports back up to where they were before.”

High-quality coal at advantageous prices

Kyrgyzstan has confirmed resources of 4.5 billion tonnes of coal with an

additional 6 billion tonnes currently being explored, mainly in the Karakesh and Sulukta areas, and Kyrgyz coal is known for its high quality. Kyrgyz consumers currently use a total of around 2.2 million tonnes per year, so there is strong export potential, particularly since Kyrgyz coal sells for around one-fourth the price of coal available in Afghanistan. Kyrgyz Komur is par-ticularly targeting the Tajikistan and Afghanistan markets as well as China.

The Kyrgyz coal industry needs investment in new technologies and equipment in order to realise its full potential. Kyrgyzstan is already part-nering with companies in South Korea and Russia concerning coal process-ing, and Kyrgyz Komur welcomes the chance to work with investors

Government of Kyrgyz Republic State Enterprise “Kyrgyz Komur”

Ahunbaeva st. 119 – room 234Bishkek

Tel: +996 312 51 1908kyrgyzkomur@mail.ru

xxxxxx

and partners from Europe. Asanbek Moldokeev concludes, “The Kyrgyz coal industry needs around €38.1 million to €45.8 million in investments, for example in new technologies and the construction of railways for coal transport. Our coal companies and the government cannot manage this alone so we need foreign direct invest-ment. Kyrgyzstan offers a pro-business environment and our coal industry has great investment appeal, especially since our coal regions have many other mining resources just waiting to be exploited.”

38

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

38

Harnessing Vast Energy Resources to Power the FutureThe Kyrgyz Republic’s massive energy resources have the

potential to ensure the country’s energy independence as

well as major export revenues. Hydropower leads the way,

accounting for 80% of the country’s power-generation

capacity of around 3 million kWh. The Kyrgyz Republic

has over 170 rivers which could be harnessed to produce more

than 80 billion kWh per year, according to some estimates.

Most of the country’s hydropower currently comes from the

Toktogul, Kurpsay, Tash-Kumyr hydroelectric stations on

the Naryn River, which experts say could support around

33 additional hydropower plants with an estimated total

capacity of 6,450 MW.

The Kyrgyz Republic exports electricity to neighbouring Kazakhstan, Uzbekistan, Tajikistan, China and Russia, with over 2.7 billion kWh of electricity going to the Russian market each year. In addition to hydropower, the Kyrgyz Republic has exploitable deposits of coal as well as the potential to develop wind, solar and biomass energy.

Urgent need to update energy infrastructure

In spite of this signifi cant potential, the Kyrgyz Republic is often plagued by power outages, particularly in the winter months. Outdated and inadequate energy infrastructure and an urgent need for investment in new machinery, tech-nologies, power plants and energy-transport systems are holding the energy sector back. In addition, the Kyrgyz Republic has to import the oil, gas and most of the coal it uses to fuel its hydropower plants, in spite of its large coal reserves.

To help cope with these challenges, the Kyrgyz govern-ment has launched its ‘Strategy for the Fuel and Energy Complex Development to 2025’, which includes building around 100 small hydroelectric plants with a total capacity of approximately 180 MW. In addition, the government’s recently announced €5.2 billion development drive includes 15 energy projects with a cumulative investment need of €4.1 billion. Russian power companies INTER RAO UES

© IBC

Group and RusHydro have already agreed to support large hydropower projects outlined in the initiative.

To attract FDI in energy projects, the Kyrgyz government established the Fuel and Energy Sector Transparency Initia-tive (FESTI) in 2011; it ensures transparent procedures for setting energy tariffs and open and competitive tenders for fuel export and import projects. FDI has been pouring in to the Kyrgyz energy sector, particularly through joint ventures. In just one example, Kyrgyz national power company Nat-sionalnaya Electricheskaya Syet and China’s Tebian Electric signed a €257.7 million deal to build the Datka-Kemin 500 kv power-transmission lines, a project which will help break the Kyrgyz Republic’s reliance on Central Asian transmis-sion systems and will be a step towards energy independence.

THE EUROPEAN TIMES

National Electrical Grid of Kyrgyzstan

Energy Company’s Mission: Providing Stable and Reliable EnergyOJSC “National Electrical Grid of

Kyrgyzstan” (NEGK) plays a crucial

role in bringing electrical energy to

customers throughout Kyrgyzstan and

beyond. NEGK was launched in 2001 to

handle Kyrgyzstan’s power transmission

when the Kyrgyz government unbundled

state-owned energy enterprise Kyrgyzen-

ergo. Today, NEGK owns and operates

more than 10,000 km of power-trans-

mission lines of 110 kV and higher, as

well as 190 substations with primary

voltages of 500, 220 or 110 kV.

Every year NEGK transports around 12 TWh of energy, nearly 10% of which is exported. NEGK brings wholesale electrical energy from all Kyrgyzstan’s hydroelectric power stations to four Kyrgyz Distribution Energy Companies (DEC) and 68 Large Industrial Consumers (LIC) as well as to neighbouring Kazakhstan, Uzbekistan and Tajikistan.

Medetbek Aitkulov, General Director (CEO), says, “We do not set electric-ity rates; this is the responsibility of the

Medetbek Aitkulov, General Director (CEO)

Ministry of Energy and Industry. Our task is not to generate profi ts but rather to meet the government’s objectives for the energy fi eld. Our job is to provide stable and reliable energy throughout Kyrgyzstan.” He adds that NEGK is currently focussing on upgrading the country’s energy infra-structure, most of which was installed 30 to 40 years ago and cannot handle Kyr-gyzstan’s current needs.

The Asian Development Bank recently provided €41.22 million (US$55 million) to NEGK for upgrading lines and substations, and NEGK has launched a bidding process for partners to complete the project. NEGK has also received support from China to build a second 500 KW power line connecting northern and southern Kyrgyzstan to help relieve the power outages that have plagued the country in the past.

NEGK welcomes the chance to work with European partners as it drives

forward its modernisation programmes. Medetbek Aitkulov says, “We would be very grateful to have the support of European banks and investors. We have already successfully completed projects with European organisations, including the EBRD, and we have demonstrated that NEGK is a reliable partner. NEGK is a transparent company which is audited four times every year by external auditors.”

Although it is 93% government-owned, NEGK is operated as an open joint-stock company with a rapid decision-making process. Medetbek Aitkulov points out, “I can make fi nancial decisions for up to 10% of the company’s total funds and the Board of Directors can do this for up to 20%. We recently signed a €291.36 million (US$389 million) agreement with Chinese company TBEA.” He adds that NEGK is involved in the regional CASA-1000 energy project, which represents outstanding oppor-tunities for investors looking to get involved in Central Asia’s rapidly devel-oping energy sector.

NEGKJibek-Jolu ave. 326

720070 BishkekTel: +996 312 66 1001

nesk@elcat.kgwww.energo.kg

39

THE EUROPEAN TIMES

Energy & Mining

THE EUROPEAN TIMES

Harnessing Vast Energy Resources to Power the FutureThe Kyrgyz Republic’s massive energy resources have the

potential to ensure the country’s energy independence as

well as major export revenues. Hydropower leads the way,

accounting for 80% of the country’s power-generation

capacity of around 3 million kWh. The Kyrgyz Republic

has over 170 rivers which could be harnessed to produce more

than 80 billion kWh per year, according to some estimates.

Most of the country’s hydropower currently comes from the

Toktogul, Kurpsay, Tash-Kumyr hydroelectric stations on

the Naryn River, which experts say could support around

33 additional hydropower plants with an estimated total

capacity of 6,450 MW.

The Kyrgyz Republic exports electricity to neighbouring Kazakhstan, Uzbekistan, Tajikistan, China and Russia, with over 2.7 billion kWh of electricity going to the Russian market each year. In addition to hydropower, the Kyrgyz Republic has exploitable deposits of coal as well as the potential to develop wind, solar and biomass energy.

Urgent need to update energy infrastructure

In spite of this signifi cant potential, the Kyrgyz Republic is often plagued by power outages, particularly in the winter months. Outdated and inadequate energy infrastructure and an urgent need for investment in new machinery, tech-nologies, power plants and energy-transport systems are holding the energy sector back. In addition, the Kyrgyz Republic has to import the oil, gas and most of the coal it uses to fuel its hydropower plants, in spite of its large coal reserves.

To help cope with these challenges, the Kyrgyz govern-ment has launched its ‘Strategy for the Fuel and Energy Complex Development to 2025’, which includes building around 100 small hydroelectric plants with a total capacity of approximately 180 MW. In addition, the government’s recently announced €5.2 billion development drive includes 15 energy projects with a cumulative investment need of €4.1 billion. Russian power companies INTER RAO UES

© IBC

Group and RusHydro have already agreed to support large hydropower projects outlined in the initiative.

To attract FDI in energy projects, the Kyrgyz government established the Fuel and Energy Sector Transparency Initia-tive (FESTI) in 2011; it ensures transparent procedures for setting energy tariffs and open and competitive tenders for fuel export and import projects. FDI has been pouring in to the Kyrgyz energy sector, particularly through joint ventures. In just one example, Kyrgyz national power company Nat-sionalnaya Electricheskaya Syet and China’s Tebian Electric signed a €257.7 million deal to build the Datka-Kemin 500 kv power-transmission lines, a project which will help break the Kyrgyz Republic’s reliance on Central Asian transmis-sion systems and will be a step towards energy independence.

THE EUROPEAN TIMES

National Electrical Grid of Kyrgyzstan

Energy Company’s Mission: Providing Stable and Reliable EnergyOJSC “National Electrical Grid of

Kyrgyzstan” (NEGK) plays a crucial

role in bringing electrical energy to

customers throughout Kyrgyzstan and

beyond. NEGK was launched in 2001 to

handle Kyrgyzstan’s power transmission

when the Kyrgyz government unbundled

state-owned energy enterprise Kyrgyzen-

ergo. Today, NEGK owns and operates

more than 10,000 km of power-trans-

mission lines of 110 kV and higher, as

well as 190 substations with primary

voltages of 500, 220 or 110 kV.

Every year NEGK transports around 12 TWh of energy, nearly 10% of which is exported. NEGK brings wholesale electrical energy from all Kyrgyzstan’s hydroelectric power stations to four Kyrgyz Distribution Energy Companies (DEC) and 68 Large Industrial Consumers (LIC) as well as to neighbouring Kazakhstan, Uzbekistan and Tajikistan.

Medetbek Aitkulov, General Director (CEO), says, “We do not set electric-ity rates; this is the responsibility of the

Medetbek Aitkulov, General Director (CEO)

Ministry of Energy and Industry. Our task is not to generate profi ts but rather to meet the government’s objectives for the energy fi eld. Our job is to provide stable and reliable energy throughout Kyrgyzstan.” He adds that NEGK is currently focussing on upgrading the country’s energy infra-structure, most of which was installed 30 to 40 years ago and cannot handle Kyr-gyzstan’s current needs.

The Asian Development Bank recently provided €41.22 million (US$55 million) to NEGK for upgrading lines and substations, and NEGK has launched a bidding process for partners to complete the project. NEGK has also received support from China to build a second 500 KW power line connecting northern and southern Kyrgyzstan to help relieve the power outages that have plagued the country in the past.

NEGK welcomes the chance to work with European partners as it drives

forward its modernisation programmes. Medetbek Aitkulov says, “We would be very grateful to have the support of European banks and investors. We have already successfully completed projects with European organisations, including the EBRD, and we have demonstrated that NEGK is a reliable partner. NEGK is a transparent company which is audited four times every year by external auditors.”

Although it is 93% government-owned, NEGK is operated as an open joint-stock company with a rapid decision-making process. Medetbek Aitkulov points out, “I can make fi nancial decisions for up to 10% of the company’s total funds and the Board of Directors can do this for up to 20%. We recently signed a €291.36 million (US$389 million) agreement with Chinese company TBEA.” He adds that NEGK is involved in the regional CASA-1000 energy project, which represents outstanding oppor-tunities for investors looking to get involved in Central Asia’s rapidly devel-oping energy sector.

NEGKJibek-Jolu ave. 326

720070 BishkekTel: +996 312 66 1001

nesk@elcat.kgwww.energo.kg

40

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES

Communication& Transport

• Meeting the Challenge of Transport-Infrastructure Development

• Rapidly Developing ICT Sector Attracting Global Investors

“Kyrgyzstan can be a gateway to Central Asia and China for

European companies.”Maksatbek D. Dyikanov, State Secretary under the Ministry

of Transport and Communications

THE EUROPEAN TIMES

Massive Infrastructure Projects Creating New International LinksMaksatbek D. Dyikanov, State Secretary under the Ministry of

Transport and Communications, discusses major international

transport corridors and other key projects his ministry is currently

overseeing.

Maksatbek D. Dyikanov, State Secretary under the Ministry of Transport and Communications

European Times: What are the current pri-orities for the Ministry of Transport and Communications?

Maksatbek D. Dyikanov: This ministry plays a crucial role in Kyrgyzstan’s economic development because all sectors depend on high-quality transport and communications infrastructure. Our country had a fairly undeveloped infra-structure in the Soviet years and we have made many major improvements since that time. We are currently involved in a number of ambitious transport projects, including building and improving the international transport corridors which pass through Kyrgyzstan and connect it to China, Kazakh-stan, Uzbekistan, Russia and other markets. Concerning com-munications, we are steadily improving our ICT systems and services as well as our telecom infrastructure, and we have built a high-technology park designed as the ideal base for ICT companies.

European Times: What are your priorities con-cerning transport-infrastructure projects?

Maksatbek D. Dyikanov: Thanks to the country’s mountainous geography, around 95% of passenger and goods transport in Kyrgyzstan is by road, so road develop-ment, particularly of the main corridors, is our top priority. One key transport corridor is the one linking China, Kyr-gyzstan, and Uzbekistan; we have budgeted the work we need to do on our section of this corridor at around €1.93 billion.

We are fi nancing our transport-infrastructure projects with government funds as well as with the support of inter-national organisations and investors. We have received support from China to launch several transport-infrastruc-

ture projects and the Ministry of Transport and Communi-cations recently signed a contract with a Chinese company to rehabilitate the Bishkek-Naryn-Torugart road.

We are planning to implement a concession system as well as tenders to attract private investment which will help the gov-ernment complete various initiatives in the transport sector. We have also received assistance from international organi-sations, including the Asian Development Bank, the World Bank, the European Bank for Reconstruction and Develop-ment, the EU, and a group of fi ve banks in the Middle East. Our transport-infrastructure projects represent outstanding

41

THE EUROPEAN TIMES

Communication & Transport

THE EUROPEAN TIMES

Massive Infrastructure Projects Creating New International LinksMaksatbek D. Dyikanov, State Secretary under the Ministry of

Transport and Communications, discusses major international

transport corridors and other key projects his ministry is currently

overseeing.

Maksatbek D. Dyikanov, State Secretary under the Ministry of Transport and Communications

European Times: What are the current pri-orities for the Ministry of Transport and Communications?

Maksatbek D. Dyikanov: This ministry plays a crucial role in Kyrgyzstan’s economic development because all sectors depend on high-quality transport and communications infrastructure. Our country had a fairly undeveloped infra-structure in the Soviet years and we have made many major improvements since that time. We are currently involved in a number of ambitious transport projects, including building and improving the international transport corridors which pass through Kyrgyzstan and connect it to China, Kazakh-stan, Uzbekistan, Russia and other markets. Concerning com-munications, we are steadily improving our ICT systems and services as well as our telecom infrastructure, and we have built a high-technology park designed as the ideal base for ICT companies.

European Times: What are your priorities con-cerning transport-infrastructure projects?

Maksatbek D. Dyikanov: Thanks to the country’s mountainous geography, around 95% of passenger and goods transport in Kyrgyzstan is by road, so road develop-ment, particularly of the main corridors, is our top priority. One key transport corridor is the one linking China, Kyr-gyzstan, and Uzbekistan; we have budgeted the work we need to do on our section of this corridor at around €1.93 billion.

We are fi nancing our transport-infrastructure projects with government funds as well as with the support of inter-national organisations and investors. We have received support from China to launch several transport-infrastruc-

ture projects and the Ministry of Transport and Communi-cations recently signed a contract with a Chinese company to rehabilitate the Bishkek-Naryn-Torugart road.

We are planning to implement a concession system as well as tenders to attract private investment which will help the gov-ernment complete various initiatives in the transport sector. We have also received assistance from international organi-sations, including the Asian Development Bank, the World Bank, the European Bank for Reconstruction and Develop-ment, the EU, and a group of fi ve banks in the Middle East. Our transport-infrastructure projects represent outstanding

42

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

opportunities for international investors and companies and we welcome their participation.

European Times: In addition to road projects, what are some other current initiatives for the ministry?

Maksatbek D. Dyikanov: We want to improve our airports, attract more international carriers to offer flights to and from Kyrgyzstan, and upgrade our airline fleets. Improving our air-transport services will play a big role in boosting the country’s international trade as well as our tourism industry. We also need to invest in our railway system, including in new rolling stock. One project which is now moving forward is the China-Kyr-gyzstan-Uzbekistan railway, which will greatly improve conditions for trade-oriented companies. The World Bank is providing advisory assistance to Kyrgyzstan for this project.

In the communications sector, one of our goals is to bring Internet connections to every village and school in the country. We have already equipped 470 villages with Internet service and we continue to drive this project forward. We are working with mobile operators to offer Internet connections in isolated rural areas. Another com-munications initiative for the ministry is to complete the transition to digital television. In all our transport and com-munications projects, we aim to bring new services to rural areas as well as to our cities.

European Times: What kind of investors are you looking for?

Maksatbek D. Dyikanov: Kyrgyzstan has created the right conditions for investors in transport and communications and this country offers a wealth of opportunities. We welcome know-how and technologies as well as fi nancial support. We also need lower prices for calls within the region; it costs more to call a neighbouring country than to call the US. We would like

operators to adopt a regional strategy for mobile communica-tions which would lower prices for consumers in Central Asia.

We particularly encourage European investors who can help us build a bridge between Kyrgyzstan and Europe. Along with other countries in the region, Kyrgyzstan is working to revive trade along the Silk Road between Europe and Asia. Kyrgyzstan can be a gateway to Central Asia and China for European companies.

“This country has a number of advantages for investors, including our young, well-educated, multilingual and technically knowledgeable workforce.”

European Times: Why should international investors target Kyrgyzstan?

Maksatbek D. Dyikanov: This country has a number of advantages for investors, including our young, well-educated, multilingual and technically knowledgeable workforce. Kyr-gyzstan also has beautiful natural areas and great tourism potential. In addition, Kyrgyzstan’s people are very friendly and hospitable, and the government, including the Ministry of Transport and Communications, is doing its best to provide the best possible protection and support for international investors.

I know that Kyrgyzstan’s international image has not always been the best, but investors should know that great progress is being made here every day and no one should be afraid to come here. Kyrgyzstan offers tremendous potential in many areas. I personally welcome international investors to visit us and see for themselves everything that this country has to offer.

© IBC

THE EUROPEAN TIMES

Meeting the Challenge of Transport-Infrastructure DevelopmentThe Kyrgyz Republic – a key stop

on the historic Silk Road connecting

Europe and Asia – is building on its

strategic location to become a leading

regional and international trade hub

through upgrading its transport infra-

structure. In its new development

programme launched in December

2012, the government budgets almost

€700 million for transport and com-

munications projects. These will be

achieved with the help of international

funding organisations and investors.

Building modern transport systems is a challenge for this land-locked, very mountainous country, espe-cially since its transport infra-structure was neglected during the Soviet years. Bishkek and the rest of the northern part of the country are separated from the southern Kyrgyz Republic, including Osh, by a sparsely populated, mountainous region where roads and railways are difficult to build and maintain.

As a result, northern Kyrgyz Repub-lic’s transport system is more closely linked to Kazakhstan’s transport network than to the south, while the southern Kyrgyz Republic’s transport system is integrated with that of Uzbekistan. The Kyrgyz gov-ernment is focussing on building and refurbishing transport systems within the country, including between north and south, and along routes connect-ing the Kyrgyz Republic to China, Kazakhstan, Uzbekistan, Russia and other markets.

Upgrading roads a priority

Since most transport in the Kyrgyz Republic today is by road, upgrading major road-transport corridors is a current priority. One project connect-ing the Kyrgyz Republic to China and Uzbekistan is budgeted at €1.93 billion. Concessions and tenders will be offered for this and other projects, representing outstanding opportuni-ties for foreign companies. China has already pledged its support for the Bishkek-Naryn-Torugart road and other transport initiatives.

The Kyrgyz government also aims to continue to improve the country’s air and rail links. A crucial rail route is the China-Kyrgyzstan-Uzbekistan railway, which is being upgraded with the support of the World Bank. Manas

International Airport near Bishkek has been modernised and now offers up-to-date logistics services.

To support its growing international trade, the Kyrgyz Republic is very active in the TRACECA project, an EU programme launched in 1993 to develop a transport route from Europe to China via the Black Sea, the Caucasus and the Caspian Sea. The route passes through Armenia, Azerbaijan, Georgia, Moldova, Ukraine, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan, Romania, Bulgaria and Turkey. The Kyrgyz Republic is also participating in the Shanghai Coop-eration Organisation, which is devel-oping trade along a new Eurasian land bridge linking China and Europe.

© IBC

43

THE EUROPEAN TIMESTHE EUROPEAN TIMES

opportunities for international investors and companies and we welcome their participation.

European Times: In addition to road projects, what are some other current initiatives for the ministry?

Maksatbek D. Dyikanov: We want to improve our airports, attract more international carriers to offer flights to and from Kyrgyzstan, and upgrade our airline fleets. Improving our air-transport services will play a big role in boosting the country’s international trade as well as our tourism industry. We also need to invest in our railway system, including in new rolling stock. One project which is now moving forward is the China-Kyr-gyzstan-Uzbekistan railway, which will greatly improve conditions for trade-oriented companies. The World Bank is providing advisory assistance to Kyrgyzstan for this project.

In the communications sector, one of our goals is to bring Internet connections to every village and school in the country. We have already equipped 470 villages with Internet service and we continue to drive this project forward. We are working with mobile operators to offer Internet connections in isolated rural areas. Another com-munications initiative for the ministry is to complete the transition to digital television. In all our transport and com-munications projects, we aim to bring new services to rural areas as well as to our cities.

European Times: What kind of investors are you looking for?

Maksatbek D. Dyikanov: Kyrgyzstan has created the right conditions for investors in transport and communications and this country offers a wealth of opportunities. We welcome know-how and technologies as well as fi nancial support. We also need lower prices for calls within the region; it costs more to call a neighbouring country than to call the US. We would like

operators to adopt a regional strategy for mobile communica-tions which would lower prices for consumers in Central Asia.

We particularly encourage European investors who can help us build a bridge between Kyrgyzstan and Europe. Along with other countries in the region, Kyrgyzstan is working to revive trade along the Silk Road between Europe and Asia. Kyrgyzstan can be a gateway to Central Asia and China for European companies.

“This country has a number of advantages for investors, including our young, well-educated, multilingual and technically knowledgeable workforce.”

European Times: Why should international investors target Kyrgyzstan?

Maksatbek D. Dyikanov: This country has a number of advantages for investors, including our young, well-educated, multilingual and technically knowledgeable workforce. Kyr-gyzstan also has beautiful natural areas and great tourism potential. In addition, Kyrgyzstan’s people are very friendly and hospitable, and the government, including the Ministry of Transport and Communications, is doing its best to provide the best possible protection and support for international investors.

I know that Kyrgyzstan’s international image has not always been the best, but investors should know that great progress is being made here every day and no one should be afraid to come here. Kyrgyzstan offers tremendous potential in many areas. I personally welcome international investors to visit us and see for themselves everything that this country has to offer.

© IBC

Communication & Transport

THE EUROPEAN TIMES

Meeting the Challenge of Transport-Infrastructure DevelopmentThe Kyrgyz Republic – a key stop

on the historic Silk Road connecting

Europe and Asia – is building on its

strategic location to become a leading

regional and international trade hub

through upgrading its transport infra-

structure. In its new development

programme launched in December

2012, the government budgets almost

€700 million for transport and com-

munications projects. These will be

achieved with the help of international

funding organisations and investors.

Building modern transport systems is a challenge for this land-locked, very mountainous country, espe-cially since its transport infra-structure was neglected during the Soviet years. Bishkek and the rest of the northern part of the country are separated from the southern Kyrgyz Republic, including Osh, by a sparsely populated, mountainous region where roads and railways are difficult to build and maintain.

As a result, northern Kyrgyz Repub-lic’s transport system is more closely linked to Kazakhstan’s transport network than to the south, while the southern Kyrgyz Republic’s transport system is integrated with that of Uzbekistan. The Kyrgyz gov-ernment is focussing on building and refurbishing transport systems within the country, including between north and south, and along routes connect-ing the Kyrgyz Republic to China, Kazakhstan, Uzbekistan, Russia and other markets.

Upgrading roads a priority

Since most transport in the Kyrgyz Republic today is by road, upgrading major road-transport corridors is a current priority. One project connect-ing the Kyrgyz Republic to China and Uzbekistan is budgeted at €1.93 billion. Concessions and tenders will be offered for this and other projects, representing outstanding opportuni-ties for foreign companies. China has already pledged its support for the Bishkek-Naryn-Torugart road and other transport initiatives.

The Kyrgyz government also aims to continue to improve the country’s air and rail links. A crucial rail route is the China-Kyrgyzstan-Uzbekistan railway, which is being upgraded with the support of the World Bank. Manas

International Airport near Bishkek has been modernised and now offers up-to-date logistics services.

To support its growing international trade, the Kyrgyz Republic is very active in the TRACECA project, an EU programme launched in 1993 to develop a transport route from Europe to China via the Black Sea, the Caucasus and the Caspian Sea. The route passes through Armenia, Azerbaijan, Georgia, Moldova, Ukraine, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan, Romania, Bulgaria and Turkey. The Kyrgyz Republic is also participating in the Shanghai Coop-eration Organisation, which is devel-oping trade along a new Eurasian land bridge linking China and Europe.

© IBC

44

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

44

Rapidly Developing ICT Sector Attracting Global InvestorsThe Kyrgyz ICT sector has been

liberalised in line with World Trade

Organisation criteria and includes

around 250 telecom enterprises, both

domestic and foreign. The sector is

developing rapidly, contributing around

8% of the Kyrgyz Republic’s GDP. As

part of the government’s telecom mod-

ernisation drive, the National Agency

for Information Resources, Technolo-

gies and Communication now oversees

telecom activities. The ICT sector is

still dominated by Kyrgyz Telecom,

which has a 92% share of the fi xed-line

market and a 14% share of the telecom

market overall.

The Kyrgyz mobile-communica-tions segment has grown particu-larly rapidly, averaging around 26% growth per year in 2009 and 2010, and mobile operators continue to bring competitive new services to the market. Mobile-services provider O!, for example, recently set up new base stations in the Issyk-Kul region and has enhanced its network’s capacity.

One of Central Asia’s highest Internet penetration rates

The Kyrgyz Republic has one of the highest Internet penetration rates in Central Asia, reaching around 20% as of 2010. Per capita Internet sub-scriptions remain very low, however, since most users choose public

rather than private Internet access. In October 2012, two members of the Kyrgyz parliament launched the ‘Internet Parking’ project in downtown Bishkek to help locals learn how to use the Internet. For one year, free outdoor classes in Internet literacy as well as free Wi-Fi connec-tions will be available along the city’s Freedom Boulevard between Chui Prospect and Kiev Street.

The Kyrgyz Republic’s telecom-services providers are slowly but steadily imple-menting cutting-edge new technologies. Global Asia Telecom, Sayma Telecom and Foris Telecom Kyrgyzstan are deploying LTE networks, while Totel, which has pre-Wimax frequencies, is also considering switching to a new technology for fi xed wireless broadband.Bringing top-quality telecom services

to residents throughout a very moun-tainous, high-altitude country is a major challenge, but a fi bre-optic-cable project currently in the works should improve connections even in rural areas.

Another project by Kyrgyz Telecom to upgrade its analogue networks to digital is already around 80% complete but needs investor support to be fi nished.

The ICT sector has been singled out by the Kyrgyz Republic’s Ministry of Economy as having particularly strong attractions for foreign investors. Google is one global player which has entered the market. In July 2012, Google announced that it plans to build data centres in the Kyrgyz Republic, citing the advantage of the country’s low elec-tricity costs.

THE EUROPEAN TIMES

Kyrgyz Telecom

Telecom Leader Aims to Offer New ServicesKyrgyz Telecom brings world-class services

to individual and corporate customers in

Kyrgyzstan. With a 92% share of the

fi xed-line market and a 14% share in the

overall telecom market, the state-owned

enterprise remains the dominant player

in the country’s liberalised telecom sector,

which now accounts for around 14% of

Kyrgyzstan’s GDP.

“We have 440,000 contracts for fi xed-line services, and even though there are now 247 licensed telecom operators in Kyrgyzstan, we are the only company that provides services to every city and village in the country. In the future, we aim to enter the mobile market as well,” explains Askar Baratbaev, CEO and President. In addition to providing fi xed-line services, Kyrgyz Telecom offers international calls, Internet data transfer, and tele-radio broadcasting.

With the support of funding from the World Bank and the EBRD, Kyrgyz

Telecom has already upgraded 80% of its network from analogue to digital and is now looking for investors and partners to provide the €19.3 million necessary to fi nish this initiative. The company is also seeking fi nancial support to launch mobile services, a project with excep-tional potential given Kyrgyz Telecom’s established market presence. Askar Baratbaev explains, “To offer mobile services, we need around €31 million. We are looking for credit at low interest, or for individual partners.”

North-south fi bre-optic cable network

Providing reliable telecom services in a very mountainous country where some villages are at around 4,000 m elevation presents major challenges. To improve its infra-structure and cope with these geographi-cal constraints, Kyrgyz Telecom is working on a project to connect the northern and southern parts of Kyrgyzstan with a fi bre-optic-cable network. Askar Baratbaev says, “As you can imagine, this is challenging, but we have highly qualifi ed engineers working on it. We hope to complete this project by the end of 2013. It helps that we are already the only company with a cable network that reaches throughout the country.”

Kyrgyz Telecom is the ideal partner in Kyrgyzstan thanks to its market-leading position, positive image and strong track record. “Operating transparently is a high priority for us and we are strongly supporting our country’s e-government programme,” Askar Baratbaev says. Urging international investors to explore opportunities in Kyrgyzstan, he adds, “Europeans should not be afraid of Kyr-gyzstan. Even though this country has had some troubles in the recent past, we are entering an era that is very safe and pros-perous. We are ready to work with investors and partners from anywhere in the world.”

Kyrgyz Telecom 96 Chuy ave.

720000 BishkekTel: +996 312 68 1616info@kt.kg - www.kt.kg

Askar Baratbaev, CEO and President

45

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Rapidly Developing ICT Sector Attracting Global InvestorsThe Kyrgyz ICT sector has been

liberalised in line with World Trade

Organisation criteria and includes

around 250 telecom enterprises, both

domestic and foreign. The sector is

developing rapidly, contributing around

8% of the Kyrgyz Republic’s GDP. As

part of the government’s telecom mod-

ernisation drive, the National Agency

for Information Resources, Technolo-

gies and Communication now oversees

telecom activities. The ICT sector is

still dominated by Kyrgyz Telecom,

which has a 92% share of the fi xed-line

market and a 14% share of the telecom

market overall.

The Kyrgyz mobile-communica-tions segment has grown particu-larly rapidly, averaging around 26% growth per year in 2009 and 2010, and mobile operators continue to bring competitive new services to the market. Mobile-services provider O!, for example, recently set up new base stations in the Issyk-Kul region and has enhanced its network’s capacity.

One of Central Asia’s highest Internet penetration rates

The Kyrgyz Republic has one of the highest Internet penetration rates in Central Asia, reaching around 20% as of 2010. Per capita Internet sub-scriptions remain very low, however, since most users choose public

rather than private Internet access. In October 2012, two members of the Kyrgyz parliament launched the ‘Internet Parking’ project in downtown Bishkek to help locals learn how to use the Internet. For one year, free outdoor classes in Internet literacy as well as free Wi-Fi connec-tions will be available along the city’s Freedom Boulevard between Chui Prospect and Kiev Street.

The Kyrgyz Republic’s telecom-services providers are slowly but steadily imple-menting cutting-edge new technologies. Global Asia Telecom, Sayma Telecom and Foris Telecom Kyrgyzstan are deploying LTE networks, while Totel, which has pre-Wimax frequencies, is also considering switching to a new technology for fi xed wireless broadband.Bringing top-quality telecom services

to residents throughout a very moun-tainous, high-altitude country is a major challenge, but a fi bre-optic-cable project currently in the works should improve connections even in rural areas.

Another project by Kyrgyz Telecom to upgrade its analogue networks to digital is already around 80% complete but needs investor support to be fi nished.

The ICT sector has been singled out by the Kyrgyz Republic’s Ministry of Economy as having particularly strong attractions for foreign investors. Google is one global player which has entered the market. In July 2012, Google announced that it plans to build data centres in the Kyrgyz Republic, citing the advantage of the country’s low elec-tricity costs.

THE EUROPEAN TIMES

Kyrgyz Telecom

Telecom Leader Aims to Offer New ServicesKyrgyz Telecom brings world-class services

to individual and corporate customers in

Kyrgyzstan. With a 92% share of the

fi xed-line market and a 14% share in the

overall telecom market, the state-owned

enterprise remains the dominant player

in the country’s liberalised telecom sector,

which now accounts for around 14% of

Kyrgyzstan’s GDP.

“We have 440,000 contracts for fi xed-line services, and even though there are now 247 licensed telecom operators in Kyrgyzstan, we are the only company that provides services to every city and village in the country. In the future, we aim to enter the mobile market as well,” explains Askar Baratbaev, CEO and President. In addition to providing fi xed-line services, Kyrgyz Telecom offers international calls, Internet data transfer, and tele-radio broadcasting.

With the support of funding from the World Bank and the EBRD, Kyrgyz

Telecom has already upgraded 80% of its network from analogue to digital and is now looking for investors and partners to provide the €19.3 million necessary to fi nish this initiative. The company is also seeking fi nancial support to launch mobile services, a project with excep-tional potential given Kyrgyz Telecom’s established market presence. Askar Baratbaev explains, “To offer mobile services, we need around €31 million. We are looking for credit at low interest, or for individual partners.”

North-south fi bre-optic cable network

Providing reliable telecom services in a very mountainous country where some villages are at around 4,000 m elevation presents major challenges. To improve its infra-structure and cope with these geographi-cal constraints, Kyrgyz Telecom is working on a project to connect the northern and southern parts of Kyrgyzstan with a fi bre-optic-cable network. Askar Baratbaev says, “As you can imagine, this is challenging, but we have highly qualifi ed engineers working on it. We hope to complete this project by the end of 2013. It helps that we are already the only company with a cable network that reaches throughout the country.”

Kyrgyz Telecom is the ideal partner in Kyrgyzstan thanks to its market-leading position, positive image and strong track record. “Operating transparently is a high priority for us and we are strongly supporting our country’s e-government programme,” Askar Baratbaev says. Urging international investors to explore opportunities in Kyrgyzstan, he adds, “Europeans should not be afraid of Kyr-gyzstan. Even though this country has had some troubles in the recent past, we are entering an era that is very safe and pros-perous. We are ready to work with investors and partners from anywhere in the world.”

Kyrgyz Telecom 96 Chuy ave.

720000 BishkekTel: +996 312 68 1616info@kt.kg - www.kt.kg

Askar Baratbaev, CEO and President

Communication & Transport

46

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

46

Continent Print Company

Printing Leader Employing Cutting-Edge TechnologiesContinent Print Company, previously founded as a small print-

on-demand department of the leading IT-solution reseller in

Kyrgyzstan, has steadily grown to become one of the biggest

printing companies in the Kyrgyz Republic and a competitor in

the Kazakhstan market.

Owner and CEO Oleg Podobedov explains, “We employ the highest-quality equipment, including Müller Martini polygraphic equipment from Austria valued at more than €2 million. We have developed signifi cant capacity; for example, we can handle all the printing orders for the Kyrgyz Ministry of Education in only two to three months.”

Continent Print is currently a full-power member of Continent Group, teaming advertising, printing and IT companies to handle a wide range of projects.

The company’s customers include the Ministry of Education, UniCredit bank and other banks, Coca-Cola and other private enterprises, the World Bank, the USAID, political parties and others. “Our products for these customers range from journals and brochures to a wide variety of advertising materials. Continent Print is well known for its high quality, and a company in Kazakh-stan chose us to print a journal called ‘Gloss’,” Oleg Podobedov says. Continent Print has been operating in Kazakhstan for the past two years and anticipates strong growth there once the regional Customs Union goes into force, although the Kyrgyz market will remain its primary focus.

Defi ning Continent Print’s competitive edge, Oleg Podobedov says, “We operate on a very high level and use the latest advanced technology. We have invested massively in new tech-nologies and equipment to make sure that we deliver high-quality products. We also have eight years of experience in the printing sector and employ many highly skilled workers. Our performance speaks for itself, and we do our best to deliver all products on time and with high quality.”

The company’s future goals include increasing production and continuing to improve its performance and international standards in order to expand in regional markets. Continent Print welcomes partnerships and new customers. Oleg Podobedov says, “We are open to any form of cooperation. We guarantee honesty and quality from our side. Unfortunately, many people have a very bad idea of the Kyrgyz Republic until they actually get to know it. The Kyrgyz people are dedicated and hard-working, and I sincerely believe in my country.”

Intergelpo st. 1 - 720054 BishkekTel: +996 312 655 556

oleg@continent.kg - www.continent.kg

THE EUROPEAN TIMES

#One Magazine

Magazine a ‘Must’ Read for Those in the Know#One Magazine, launched around two

years ago, has already made a name for

itself in Kyrgyzstan as a ‘must’ read

for those in the know. #One Magazine

is widely recognised for its interesting

and timely articles as well as for

its high-quality production values.

Standing out from other local publica-

tions in its quality, length (almost 200

pages) and impressive sales volume of

around 3,000 copies per issue, #One

Magazine brings sophisticated con-

temporary journalism to Kyrgyzstan.

The magazine is designed for suc-cessful men with an interest in intel-lectual and cultural affairs, and for the equally successful women interested in similar issues. #One Magazine is distributed in key locations throughout Bishkek and is available on Kyrgyzstan Airlines flights.

#One Magazine features stylish graphic design and exceptional images, including photographs taken by the most skilled professionals in Kyrgyzstan’s fashion and advertis-ing worlds. Every issue contains interviews with all types of infl u-ential people, articles on the most interesting subjects of the day, dis-cussions of cultural events, portraits of interesting personalities, and

in-the-know reviews of fi lms, theatri-cal productions, books, concerts and other not-to-be-missed happenings in Kyrgyzstan.

Annual #One Magazine Awards honour high achievers

Demonstrating its commitment to playing a key role in Kyrgyzstan’s cultural scene and to promoting local personalities and achievements, the magazine held its fi rst annual #One Magazine Awards this year. The event honours individuals and organisations in many fi elds which have made their mark in Kyrgyzstan over the past year. Regular articles in the magazine focus on members of the local business

Razzakova st. 19/505 Business Center ‘Rossiya’Tel: +996 312 39 8080

offi ce@onemag.kgwww.onemag.kg

xxxxxx

elite, cultural figures, musicians, beautiful women who excel at a par-ticular activity, community leaders and others who are playing important roles in today’s Kyrgyzstan. Each issue has its own theme; the September 2012 issue, for example, focussed on the visual arts while the October 2012 issue focussed on spiritualism. #One Magazine will continue to explore themes of particular signifi-cance in Kyrgyz culture.

#One Magazine’s publishers, editors and writers are always ready to promote local talent and to provide a platform for creative people and for intriguing discussions on issues of importance in Kyrgyzstan today. The magazine is committed to maintain-ing the highest standards of journal-ism and to continuing to earn the trust of its rising number of readers. #One Magazine, the voice of today’s Kyrgyzstan, will continue to grow as it keeps pace with the country’s rapid development.

Ayida Dolotbakova, Editor in Chief

47

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Continent Print Company

Printing Leader Employing Cutting-Edge TechnologiesContinent Print Company, previously founded as a small print-

on-demand department of the leading IT-solution reseller in

Kyrgyzstan, has steadily grown to become one of the biggest

printing companies in the Kyrgyz Republic and a competitor in

the Kazakhstan market.

Owner and CEO Oleg Podobedov explains, “We employ the highest-quality equipment, including Müller Martini polygraphic equipment from Austria valued at more than €2 million. We have developed signifi cant capacity; for example, we can handle all the printing orders for the Kyrgyz Ministry of Education in only two to three months.”

Continent Print is currently a full-power member of Continent Group, teaming advertising, printing and IT companies to handle a wide range of projects.

The company’s customers include the Ministry of Education, UniCredit bank and other banks, Coca-Cola and other private enterprises, the World Bank, the USAID, political parties and others. “Our products for these customers range from journals and brochures to a wide variety of advertising materials. Continent Print is well known for its high quality, and a company in Kazakh-stan chose us to print a journal called ‘Gloss’,” Oleg Podobedov says. Continent Print has been operating in Kazakhstan for the past two years and anticipates strong growth there once the regional Customs Union goes into force, although the Kyrgyz market will remain its primary focus.

Defi ning Continent Print’s competitive edge, Oleg Podobedov says, “We operate on a very high level and use the latest advanced technology. We have invested massively in new tech-nologies and equipment to make sure that we deliver high-quality products. We also have eight years of experience in the printing sector and employ many highly skilled workers. Our performance speaks for itself, and we do our best to deliver all products on time and with high quality.”

The company’s future goals include increasing production and continuing to improve its performance and international standards in order to expand in regional markets. Continent Print welcomes partnerships and new customers. Oleg Podobedov says, “We are open to any form of cooperation. We guarantee honesty and quality from our side. Unfortunately, many people have a very bad idea of the Kyrgyz Republic until they actually get to know it. The Kyrgyz people are dedicated and hard-working, and I sincerely believe in my country.”

Intergelpo st. 1 - 720054 BishkekTel: +996 312 655 556

oleg@continent.kg - www.continent.kg

Communication & Transport

THE EUROPEAN TIMES

#One Magazine

Magazine a ‘Must’ Read for Those in the Know#One Magazine, launched around two

years ago, has already made a name for

itself in Kyrgyzstan as a ‘must’ read

for those in the know. #One Magazine

is widely recognised for its interesting

and timely articles as well as for

its high-quality production values.

Standing out from other local publica-

tions in its quality, length (almost 200

pages) and impressive sales volume of

around 3,000 copies per issue, #One

Magazine brings sophisticated con-

temporary journalism to Kyrgyzstan.

The magazine is designed for suc-cessful men with an interest in intel-lectual and cultural affairs, and for the equally successful women interested in similar issues. #One Magazine is distributed in key locations throughout Bishkek and is available on Kyrgyzstan Airlines flights.

#One Magazine features stylish graphic design and exceptional images, including photographs taken by the most skilled professionals in Kyrgyzstan’s fashion and advertis-ing worlds. Every issue contains interviews with all types of infl u-ential people, articles on the most interesting subjects of the day, dis-cussions of cultural events, portraits of interesting personalities, and

in-the-know reviews of fi lms, theatri-cal productions, books, concerts and other not-to-be-missed happenings in Kyrgyzstan.

Annual #One Magazine Awards honour high achievers

Demonstrating its commitment to playing a key role in Kyrgyzstan’s cultural scene and to promoting local personalities and achievements, the magazine held its fi rst annual #One Magazine Awards this year. The event honours individuals and organisations in many fi elds which have made their mark in Kyrgyzstan over the past year. Regular articles in the magazine focus on members of the local business

Razzakova st. 19/505 Business Center ‘Rossiya’Tel: +996 312 39 8080

offi ce@onemag.kgwww.onemag.kg

xxxxxx

elite, cultural figures, musicians, beautiful women who excel at a par-ticular activity, community leaders and others who are playing important roles in today’s Kyrgyzstan. Each issue has its own theme; the September 2012 issue, for example, focussed on the visual arts while the October 2012 issue focussed on spiritualism. #One Magazine will continue to explore themes of particular signifi-cance in Kyrgyz culture.

#One Magazine’s publishers, editors and writers are always ready to promote local talent and to provide a platform for creative people and for intriguing discussions on issues of importance in Kyrgyzstan today. The magazine is committed to maintain-ing the highest standards of journal-ism and to continuing to earn the trust of its rising number of readers. #One Magazine, the voice of today’s Kyrgyzstan, will continue to grow as it keeps pace with the country’s rapid development.

Ayida Dolotbakova, Editor in Chief

48

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES

Agriculture

• Agriculture Crucial for Boosting GDP and Fighting Poverty

• Global Partners Helping Agriculture Sector Achieve its Potential

“Kyrgyzstan has enormous potential in the agriculture

sector through adding value and boosting quality.”

Akylbek Jumaliev, Deputy Minister of Agriculture and Land Reclamation

THE EUROPEAN TIMES

High-Potential Agriculture Sector Focussing on Quality Kyrgyzstan’s Deputy Minister of

Agriculture and Land Reclamation,

Akylbek Jumaliev, discusses his ministry’s

goals for the agriculture sector.

European Times: How important is the agriculture sector to Kyr-gyzstan’s economy?

Akylbek Jumaliev: After gold-mining, agriculture is our leading sector, and it has tremendous growth potential. Kyrgyzstan has around 9,000 hectares of arable land on which farmers produce crops, wine, fruit (such as apricots), cattle for beef and milk products, sheep and other livestock. One problem the sector faces is that around 1,000 of our farms are very small, with low yields and high production costs. This makes our agricultural products less competitive. We are importing beef and pork from China, for example, and Kazakhstan produces grain more cheaply than we can. Our new

strategy, as a small country, is to focus on quality rather than quantity, for example by expanding our produc-tion of organic agricultural products. Kyrgyzstan has clean water, high-quality mountain pasture and unspoiled land. Kyrgyzstan beef is already very popular in Kazakhstan because of its high quality.

European Times: How does your ministry help farmers?

Akylbek Jumaliev: The Ministry of Agriculture oversees standards, and one of our current priorities is to align our standards of agricultural products with international standards, particu-larly as Kyrgyzstan is about to join the Customs Union. We are seeking investor support to build up the facili-

© IBC

49

THE EUROPEAN TIMES

Agriculture

THE EUROPEAN TIMES

High-Potential Agriculture Sector Focussing on Quality Kyrgyzstan’s Deputy Minister of

Agriculture and Land Reclamation,

Akylbek Jumaliev, discusses his ministry’s

goals for the agriculture sector.

European Times: How important is the agriculture sector to Kyr-gyzstan’s economy?

Akylbek Jumaliev: After gold-mining, agriculture is our leading sector, and it has tremendous growth potential. Kyrgyzstan has around 9,000 hectares of arable land on which farmers produce crops, wine, fruit (such as apricots), cattle for beef and milk products, sheep and other livestock. One problem the sector faces is that around 1,000 of our farms are very small, with low yields and high production costs. This makes our agricultural products less competitive. We are importing beef and pork from China, for example, and Kazakhstan produces grain more cheaply than we can. Our new

strategy, as a small country, is to focus on quality rather than quantity, for example by expanding our produc-tion of organic agricultural products. Kyrgyzstan has clean water, high-quality mountain pasture and unspoiled land. Kyrgyzstan beef is already very popular in Kazakhstan because of its high quality.

European Times: How does your ministry help farmers?

Akylbek Jumaliev: The Ministry of Agriculture oversees standards, and one of our current priorities is to align our standards of agricultural products with international standards, particu-larly as Kyrgyzstan is about to join the Customs Union. We are seeking investor support to build up the facili-

© IBC

50

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

ties and human resources to help us meet global standards. We need labo-ratories as well as trained staff, and we are looking for fi nancial and techno-logical assistance for this.

European Times: What kind of support have you already received from international organisations?

Akylbek Jumaliev: The World Bank and other global organisations have provided important assistance in our drive to control animal diseases, for example foot-and-mouth disease. We know that controlling livestock diseases is crucial for us if we want to step up our agricultural exports. We still need to upgrade our testing facilities, veteri-nary services and laboratories, and for that we need international support.

European Times: What do you think Kyrgyzstan needs to do to attract more international investment in agriculture?

Akylbek Jumaliev: We need to improve Kyrgyzstan’s global image through promoting stability and con-tinuing to fi ght corruption, and we need to offer more incentives for investors. Several organisations involved in the agriculture sector, for example profes-sional associations for crop production and for meat processing, are working together to help upgrade the sector overall and make it more investor-friendly. The government organised an investment forum on agriculture and food processing, held in September this year, in which we highlighted the advan-tages of Kyrgyzstan’s agriculture sector. We need to make these advantages better known to global investors.

European Times: What are some major recent foreign-investment projects in the agri-culture sector?

Akylbek Jumaliev: A Spanish investor has launched a huge project

that focuses on improving the quality of pastures, animal health and training programmes in the agricul-ture sector. We also have a project to upgrade veterinary services, including new refrigeration systems, new drugs for veterinary treat-ments, facilities for genetic studies of animals, and more. Some of our projects are being funded through a €77.7 million (US$100 million) loan we received from the Turkish government, including a new irriga-tion system in southern Kyrgyzstan. Once this system is operational, we expect farmers to move to that area and begin cultivation and livestock production. We believe this area will turn into a major agricultural pro-duction centre. We have outsourced to private companies the job of cleaning the new irrigation channels. Another project we have begun is to set up 300 artificial-insemination plants to improve the quality of our livestock.

European Times: Kyrgyzstan is already involved in regional trade of agricultural products. Are you targeting markets in the EU as well?

Akylbek Jumaliev: We have well-established agricultural exports to Turkey, mainly of beef, and we are

already working with several Turkish companies which supply equipment and services to our farmers. Turkish investors have opened meat-process-ing plants here. We are definitely looking to expand and develop trade and partnerships with other countries in Europe.

European Times: Looking to the future, what changes do you anticipate in Kyrgyzstan’s agri-culture sector over the coming five to ten years?

Akylbek Jumaliev: We are steadily expanding our markets, for example in the Middle East, and we are seeing more investors from outside the region. I believe these trends will continue. One of our potential investors is a food company from Qatar which is attracted to Kyr-gyzstan because of our abundance of pure water for irrigation. We have already received a major investment from PepsiCo and our president recently helped inaugurate a new juice plant; we have been importing juice from Ukraine and now we will be able to produce it here. Organic agricultural production also has a great future here. Kyrgyzstan has enormous potential in the agricul-ture sector through adding value and boosting quality.

© IBC

THE EUROPEAN TIMES

Agriculture Crucial for Boosting GDP and Fighting PovertyThe Kyrgyz Republic’s agricultural

sector, which accounts for over a quarter

of the country’s GDP and employs

around half of the workforce, has

expanded rapidly since the 1990s. The

government has placed a high priority

on keeping this growth on track and has

completed land reforms, created a rural

bank and agribusiness/rural advisory

services, established water-user associa-

tions and pasture committees, and invested

in rural transport infrastructure, among

other projects.

Agricultural development is particu-larly crucial for the Kyrgyz Republic given the high percentage of the country’s population living in rural areas, many of them with limited means. Through agriculture, the Kyrgyz Republic can not only boost its export revenues but also achieve food self-suffi ciency and alleviate rural poverty.

The Kyrgyz Republic has around 9,000 hectares of arable land on which farmers produce cotton, tobacco, wool, vegetables, fruits, meat and other agricultural products. Tobacco and cotton are the top agricultural exports, and food-processing is one of the Kyrgyz Republic’s leading manufactur-ing sectors. In the Soviet years, the Kyrgyz Republic was well known for the high quality of its food products, and Kyrgyz agricultural products have the potential to succeed in regional and international markets given suffi cient investment.

Boosting productivity

The government welcomes interna-tional investment in the agriculture sector. The needs are great. Many of the country’s farms are small, family-owned operations with limited fi nancing for new equipment, technologies and methods. Productivity is often low and most farmers are not integrated into modern supply chains. Poor transport infrastructure, the lack of strong quality controls, and protectionist policies by some of the Kyrgyz Republic’s neigh-bours are other challenges.

The Kyrgyz Republic still imports agricultural products it has the potential to produce domestically, including beef and pork from China and grain from Kazakhstan. In fact, the only two agricultural products in which the country is self-sufficient are milk and honey. The picture is slowly changing, however; in September 2012 the Kyrgyz Republic signed a partnership to export meat to Saudi Arabia, and Turkey has announced it will provide needed help for the

Kyrgyz agriculture sector. Inter-national funding organisations, including the EBRD, have also stepped in to help Kyrgyz agriculture reach its full potential.

The Ministry of Agriculture encour-ages investment that will help Kyrgyz farmers increase their productiv-ity and become more competitive in local and regional markets. The ministry is also focussing on quality rather than quantity, including promoting organic farming.

© IBC

Aigul JSCChui 147

720011 BishkekTel: +996 312 43 9762

51

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Agriculture Crucial for Boosting GDP and Fighting PovertyThe Kyrgyz Republic’s agricultural

sector, which accounts for over a quarter

of the country’s GDP and employs

around half of the workforce, has

expanded rapidly since the 1990s. The

government has placed a high priority

on keeping this growth on track and has

completed land reforms, created a rural

bank and agribusiness/rural advisory

services, established water-user associa-

tions and pasture committees, and invested

in rural transport infrastructure, among

other projects.

Agricultural development is particu-larly crucial for the Kyrgyz Republic given the high percentage of the country’s population living in rural areas, many of them with limited means. Through agriculture, the Kyrgyz Republic can not only boost its export revenues but also achieve food self-suffi ciency and alleviate rural poverty.

The Kyrgyz Republic has around 9,000 hectares of arable land on which farmers produce cotton, tobacco, wool, vegetables, fruits, meat and other agricultural products. Tobacco and cotton are the top agricultural exports, and food-processing is one of the Kyrgyz Republic’s leading manufactur-ing sectors. In the Soviet years, the Kyrgyz Republic was well known for the high quality of its food products, and Kyrgyz agricultural products have the potential to succeed in regional and international markets given suffi cient investment.

Boosting productivity

The government welcomes interna-tional investment in the agriculture sector. The needs are great. Many of the country’s farms are small, family-owned operations with limited fi nancing for new equipment, technologies and methods. Productivity is often low and most farmers are not integrated into modern supply chains. Poor transport infrastructure, the lack of strong quality controls, and protectionist policies by some of the Kyrgyz Republic’s neigh-bours are other challenges.

The Kyrgyz Republic still imports agricultural products it has the potential to produce domestically, including beef and pork from China and grain from Kazakhstan. In fact, the only two agricultural products in which the country is self-sufficient are milk and honey. The picture is slowly changing, however; in September 2012 the Kyrgyz Republic signed a partnership to export meat to Saudi Arabia, and Turkey has announced it will provide needed help for the

Kyrgyz agriculture sector. Inter-national funding organisations, including the EBRD, have also stepped in to help Kyrgyz agriculture reach its full potential.

The Ministry of Agriculture encour-ages investment that will help Kyrgyz farmers increase their productiv-ity and become more competitive in local and regional markets. The ministry is also focussing on quality rather than quantity, including promoting organic farming.

© IBC

Aigul JSCChui 147

720011 BishkekTel: +996 312 43 9762

Agriculture

52

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

52

Global Partners Helping Agriculture Sector Achieve its PotentialInternational funding organisations are

playing a crucial role in spurring on the

Kyrgyz government’s agricultural-devel-

opment programmes. The World Bank,

the USAID and the EBRD are three

partners which are supporting ambitious

projects in the Kyrgyz agriculture sector.

The World Bank’s On-Farm Irrigation II, Water Management Improvement, Agricultural Investments and Services, and Agribusiness and Marketing projects in the Kyrgyz Republic have all achieved promising results. Almost 450 pasture-users unions, 272 community seed funds and 450 water-users associations have been established through these efforts, and 122,000 hectares of irrigation systems have been rehabilitated. In addition, the programmes have supported 44 agro-processing enterprises and facili-tated the sale of €12.3 million in agri-cultural products as well as fi nancing loans and mobilising €7.57 million in investments in the Kyrgyz agri-busi-ness sector.

The USAID is another major player in the Kyrgyz agriculture sector. A recent USAID effort is the Kyrgyz Agro-Input Enterprise Develop-ment project, which builds on earlier initiatives and is helping to counter setbacks to the Kyrgyz agricul-tural sector following the disrup-tions of 2010. The project supports private entrepreneurs, farmers and commodity chains that offer the greatest potential for improving sus-tainable agricultural production and food security. It involves 20,000 pro-gressive farmers who are planting

USAID-funded improved wheat varieties and 80,000 other farmers who are adopting better farming and animal-care practices as a result of various project initiatives.

The USAID is also working with the Eurasia Group Switzerland to promote public-private partnerships in the Kyrgyz agriculture sector, and with the IFDC in the Seed Assistance Voucher and other programmes. In December 2012, the fi rst of two planned USAID-supported apricot-processing plants was inaugurated in the southern Batken region.

Enhancing attractions for private investors

The EBRD has long been actively involved in the Kyrgyz agriculture sector, particularly concerning increas-

ing access to fi nance for agribusiness and enhancing the sector’s attractive-ness for private investors. The EBRD has helped launch alternative fi nancing and collateral schemes and provides technical assistance and training. Recent EBRD agricultural initiatives include an equity share in a Kyrgyz dairy-processing company and loan support for a food retailer. The EBRD has also been involved in water- and wastewater-management projects in the Kyrgyz Republic since 2009 and in early December 2012 it announced it was looking for experts to get involved in new water projects in Kant, Bishkek and Talas.

Innovative projects like these are helping to draw FDI to the Kyrgyz agriculture sector. In just one example, PepsiCo recently announced it would invest over €1 million in a Bishkek milk plant in 2013.

© IBC

53

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Global Partners Helping Agriculture Sector Achieve its PotentialInternational funding organisations are

playing a crucial role in spurring on the

Kyrgyz government’s agricultural-devel-

opment programmes. The World Bank,

the USAID and the EBRD are three

partners which are supporting ambitious

projects in the Kyrgyz agriculture sector.

The World Bank’s On-Farm Irrigation II, Water Management Improvement, Agricultural Investments and Services, and Agribusiness and Marketing projects in the Kyrgyz Republic have all achieved promising results. Almost 450 pasture-users unions, 272 community seed funds and 450 water-users associations have been established through these efforts, and 122,000 hectares of irrigation systems have been rehabilitated. In addition, the programmes have supported 44 agro-processing enterprises and facili-tated the sale of €12.3 million in agri-cultural products as well as fi nancing loans and mobilising €7.57 million in investments in the Kyrgyz agri-busi-ness sector.

The USAID is another major player in the Kyrgyz agriculture sector. A recent USAID effort is the Kyrgyz Agro-Input Enterprise Develop-ment project, which builds on earlier initiatives and is helping to counter setbacks to the Kyrgyz agricul-tural sector following the disrup-tions of 2010. The project supports private entrepreneurs, farmers and commodity chains that offer the greatest potential for improving sus-tainable agricultural production and food security. It involves 20,000 pro-gressive farmers who are planting

USAID-funded improved wheat varieties and 80,000 other farmers who are adopting better farming and animal-care practices as a result of various project initiatives.

The USAID is also working with the Eurasia Group Switzerland to promote public-private partnerships in the Kyrgyz agriculture sector, and with the IFDC in the Seed Assistance Voucher and other programmes. In December 2012, the fi rst of two planned USAID-supported apricot-processing plants was inaugurated in the southern Batken region.

Enhancing attractions for private investors

The EBRD has long been actively involved in the Kyrgyz agriculture sector, particularly concerning increas-

ing access to fi nance for agribusiness and enhancing the sector’s attractive-ness for private investors. The EBRD has helped launch alternative fi nancing and collateral schemes and provides technical assistance and training. Recent EBRD agricultural initiatives include an equity share in a Kyrgyz dairy-processing company and loan support for a food retailer. The EBRD has also been involved in water- and wastewater-management projects in the Kyrgyz Republic since 2009 and in early December 2012 it announced it was looking for experts to get involved in new water projects in Kant, Bishkek and Talas.

Innovative projects like these are helping to draw FDI to the Kyrgyz agriculture sector. In just one example, PepsiCo recently announced it would invest over €1 million in a Bishkek milk plant in 2013.

© IBC

Health & Education

• Ambitious Healthcare Reforms Creating New Investment Opportunities

• Bringing Healthcare up to International Standards

• Signifi cant Progress in Upgrading Education System

• Education at a Crossroads

“I would like investors to know that Kyrgyzstan is defi nitely

changing for the better.”Dinara Saginbaeva, Minister of Health

54

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

54

Ambitious Healthcare Reforms Creating New Investment OpportunitiesDinara Saginbaeva, Minister of Health, discusses recent major

developments in Kyrgyzstan’s healthcare sector and outlines the

ministry’s ambitious goals.

Dinara Saginbaeva, Minister of Health

European Times: What are some of the changes that have occurred in Kyrgyzstan’s healthcare system since the Soviet years?

Dinara Saginbaeva: Any country’s healthcare system needs a lot of financial support from the gov-ernment, so when the Soviet Union collapsed, there was no money to maintain healthcare in Kyrgyzstan at the previous level. A comprehensive reform of the healthcare sector began in 1996 with the support of international funding institutions, such as the KfW, WB, WHO, etc. The focus shifted towards primary healthcare, which now receives around 40% of the total healthcare budget compared to around 10% in the Soviet years. The number of hospital beds has been reduced and the number of medical institutions has been cut in half to achieve greater efficiency. The government has also introduced a new focus on family medicine as well as mandatory health insurance and, in 2001, a State-Guaranteed Benefit Program.

Today, 76% of the population of Kyrgyzstan is insured. There is free care for pregnant women, children under the age of fi ve and for the elderly over the age of 70. Financing healthcare has also changed as a result of the reforms, and the new system has proved to be very successful. Citizens contribute to the healthcare budget by making small direct co-payments, for example when they are treated in hospitals, and fi nancing is based on outcomes. Despite the fact that the healthcare sector in Kyrgyzstan is still supported by the government, many features of the free-market economy have been implemented.

European Times: Are additional reforms planned?

Dinara Saginbaeva: For the past 15 years we have been turning the healthcare system around, so the

major work has been done. However, a reform process never ends. What was introduced in 1996 is not sufficient for today, so reforms will continue. A current priority is to further strengthen our outpatient care and to make our citizens more aware of what ambulatory or outpa-tient care means and what its advantages are. We also want to develop our family-health systems even more, as well as continue to upgrade the quality of our medical-sanitary care. The Ministry of Health will do everything in its power to ensure high-quality healthcare services for every single citizen of Kyrgyzstan.

THE EUROPEAN TIMES

““One of our goals is to

attract investors in activities

that are not directly part of

the healthcare sector but are

related, for example to food

services and cleaning for

hospitals and clinics.”

European Times: What are some major challenges the Ministry of Health is facing?

Dinara Saginbaeva: Lack of sufficient financing is the biggest challenge. We still have a deficit of 37% in the State-Guaranteed Benefit Program. Thanks to the support of donors, we have been able to implement a health-reform-ing program ‘Manas Taalimi’ and are now at the stage of implement-

ing the new ‘Den Sooluk’ Program. Our donors have supported educa-tional programmes and equipment as well as financial support. But, we still need more financing, and we hope that the new government initiative to support public-private partnerships will attract private investment to the healthcare sector. We need expensive new medical equipment, new medical buildings and hospitals, and more. We have several projects we are ready to introduce. These are on organising a dialysis centre, centralising labo-ratory for health facilities, catering, computer tomography, angiography outsourcing and development of the voluntary health-insurance system.

European Times: What kind of investors are you looking for?

Dinara Saginbaeva: One of our goals is to attract investors in activi-ties that are not directly part of the healthcare sector but are related, for example to food services and cleaning for hospitals and clinics. We would

also like to build new hospitals and new facilities for medical diagnosis, and we need financial support of around €7.51 million to complete a rehabilitation centre near Issyk-Kul lake. In addition, we aim to build a cultural and sports centre, which is budgeted at €15.4 million, and a new neurology centre, for which we need around €30.9 million. Investors can contact the Ministry of Health directly to find out more about these and other investment possibilities. My deputy ministers and I are more than happy to work with potential investors.

“The healthcare sector offers

almost limitless possibilities

and is Kyrgyzstan’s most

attractive sector to invest

in today.”

European Times: What is your message to international investors concerning investing in Kyrgyzstan?

Dinara Saginbaeva: I would like investors to know that Kyrgyzstan is definitely changing for the better and that much progress has already been made in improving our health-care system, but we still need support in reaching our goals. The events in our country in 2005 and 2010 were tragic, but also demonstrated that our people want to be free. They want democracy and a free-market economy. Investors should not be afraid to come here. They will be very welcome, because we are aware that we need their know-how and technologies as well as their financial support. The healthcare sector offers almost limitless possibilities and is Kyrgyzstan’s most attractive sector to invest in today.

55

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Ambitious Healthcare Reforms Creating New Investment OpportunitiesDinara Saginbaeva, Minister of Health, discusses recent major

developments in Kyrgyzstan’s healthcare sector and outlines the

ministry’s ambitious goals.

Dinara Saginbaeva, Minister of Health

European Times: What are some of the changes that have occurred in Kyrgyzstan’s healthcare system since the Soviet years?

Dinara Saginbaeva: Any country’s healthcare system needs a lot of financial support from the gov-ernment, so when the Soviet Union collapsed, there was no money to maintain healthcare in Kyrgyzstan at the previous level. A comprehensive reform of the healthcare sector began in 1996 with the support of international funding institutions, such as the KfW, WB, WHO, etc. The focus shifted towards primary healthcare, which now receives around 40% of the total healthcare budget compared to around 10% in the Soviet years. The number of hospital beds has been reduced and the number of medical institutions has been cut in half to achieve greater efficiency. The government has also introduced a new focus on family medicine as well as mandatory health insurance and, in 2001, a State-Guaranteed Benefit Program.

Today, 76% of the population of Kyrgyzstan is insured. There is free care for pregnant women, children under the age of fi ve and for the elderly over the age of 70. Financing healthcare has also changed as a result of the reforms, and the new system has proved to be very successful. Citizens contribute to the healthcare budget by making small direct co-payments, for example when they are treated in hospitals, and fi nancing is based on outcomes. Despite the fact that the healthcare sector in Kyrgyzstan is still supported by the government, many features of the free-market economy have been implemented.

European Times: Are additional reforms planned?

Dinara Saginbaeva: For the past 15 years we have been turning the healthcare system around, so the

major work has been done. However, a reform process never ends. What was introduced in 1996 is not sufficient for today, so reforms will continue. A current priority is to further strengthen our outpatient care and to make our citizens more aware of what ambulatory or outpa-tient care means and what its advantages are. We also want to develop our family-health systems even more, as well as continue to upgrade the quality of our medical-sanitary care. The Ministry of Health will do everything in its power to ensure high-quality healthcare services for every single citizen of Kyrgyzstan.

THE EUROPEAN TIMES

““One of our goals is to

attract investors in activities

that are not directly part of

the healthcare sector but are

related, for example to food

services and cleaning for

hospitals and clinics.”

European Times: What are some major challenges the Ministry of Health is facing?

Dinara Saginbaeva: Lack of sufficient financing is the biggest challenge. We still have a deficit of 37% in the State-Guaranteed Benefit Program. Thanks to the support of donors, we have been able to implement a health-reform-ing program ‘Manas Taalimi’ and are now at the stage of implement-

ing the new ‘Den Sooluk’ Program. Our donors have supported educa-tional programmes and equipment as well as financial support. But, we still need more financing, and we hope that the new government initiative to support public-private partnerships will attract private investment to the healthcare sector. We need expensive new medical equipment, new medical buildings and hospitals, and more. We have several projects we are ready to introduce. These are on organising a dialysis centre, centralising labo-ratory for health facilities, catering, computer tomography, angiography outsourcing and development of the voluntary health-insurance system.

European Times: What kind of investors are you looking for?

Dinara Saginbaeva: One of our goals is to attract investors in activi-ties that are not directly part of the healthcare sector but are related, for example to food services and cleaning for hospitals and clinics. We would

also like to build new hospitals and new facilities for medical diagnosis, and we need financial support of around €7.51 million to complete a rehabilitation centre near Issyk-Kul lake. In addition, we aim to build a cultural and sports centre, which is budgeted at €15.4 million, and a new neurology centre, for which we need around €30.9 million. Investors can contact the Ministry of Health directly to find out more about these and other investment possibilities. My deputy ministers and I are more than happy to work with potential investors.

“The healthcare sector offers

almost limitless possibilities

and is Kyrgyzstan’s most

attractive sector to invest

in today.”

European Times: What is your message to international investors concerning investing in Kyrgyzstan?

Dinara Saginbaeva: I would like investors to know that Kyrgyzstan is definitely changing for the better and that much progress has already been made in improving our health-care system, but we still need support in reaching our goals. The events in our country in 2005 and 2010 were tragic, but also demonstrated that our people want to be free. They want democracy and a free-market economy. Investors should not be afraid to come here. They will be very welcome, because we are aware that we need their know-how and technologies as well as their financial support. The healthcare sector offers almost limitless possibilities and is Kyrgyzstan’s most attractive sector to invest in today.

Health & Education

56

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

56

Bringing Healthcare up to International Standards

The Kyrgyz Republic has been reforming

its healthcare system since independ-

ence, focussing on boosting the quality

and effi ciency of the country’s healthcare

facilities and services as well as improving

access to these services, particularly for

residents of rural areas and the poor.

The National Health Care System Reform Programme (Manas) 1996-2005 and the subsequent Manas-Taalimi programme 2006-2010 resulted in signifi -cant improvements in public healthcare services, fi nancing and medical education. The Ministry of Health and develop-ment partners extended the programme through 2011 to synchronise it with the Kyrgyz Republic’s national development strategy. The UK’s DFID, Germany’s KfW, the Swiss Agency for Development and Cooperation, the Swedish Inter-national Development Agency and the World Bank provided fi nancial support for healthcare reform measures while WHO, UNICEF, UNFPA and USAID gave parallel fi nancing.

Through KfW’s support, for example, emergency services were strengthened throughout the country in a project budgeted at €20 million. Other KfW-funded initiatives included HIV/AIDS and tuberculosis-prevention programmes, a maternal and paediatric programme, and technical-support projects. With USAID’s support, the Kyrgyz Republic adopted a single-payer system and an

institute of family medicine that includes over 700 centres staffed with specialists that USAID helped retrain. The USAID has also focussed on tuberculosis control.

Private healthcare growing

The private healthcare sector, which began with private pharmacies, has been growing steadily and now includes spe-cialised treatment centres offering outpa-tient care. Around half of the country’s private healthcare facilities are in the Bishkek area. The private pharmaceu-ticals sector is a signifi cant growth area since imported pharmaceuticals account for around 95% of the pharmaceuticals sold in the Kyrgyz Republic today.

Government spending on healthcare has increased as the Kyrgyz economy has grown; per capita public expenditures on health increased three-fold between 2005 and 2009 to reach 6.4% of GDP. The sector still needs signifi cant support in order to bring high-quality care to all members of the population, and the government welcomes foreign investors in healthcare products, equipment, facilities and services.

© IBC

National Centre of Cardiology and Internal Medicine

Togolok Moldo st. 3 - 720040 BishkekTel: +996 312 66 2318

nccim@elcat.kg

THE EUROPEAN TIMES

Signifi cant Progress in Upgrading Education SystemKanatbek Sadykov, Minister of

Education and Science, discusses recent

advances in Kyrgyzstan’s education sector.

European Times: How has education in Kyrgyzstan changed since independence?

Kanatbek Sadykov: There have been a number of signifi cant changes, and education has long been a top priority of the Kyrgyz government. In 2011, President Atambayev, who was then Prime Minister, began some ambitious education reforms, including raising teachers’ salaries to attract more people to the teaching profession. The current lack of teachers in the country at this moment is 1,307, while three years ago this defi cit was still at 3,500 teachers. We have also seen a major increase in the number of young children going to school. In addition, in the fi rst part of 2012 we achieved our goal of providing new desks, computers and new teaching methods to around 100 schools, and we continue to bring these improvements to more schools.

“Our main priority is to further upgrade our

curricula.”

European Times: What are your priorities for the education sector over the coming decade?

Kanatbek Sadykov: Our main priority is to further upgrade our curricula. We also want to improve teachers’ methods and implement new

Kanatbek Sadykov, Minister of Education and Science

standards of teaching. In the higher-education fi eld, we want to develop more partnerships with European and other international universities, for example through the Erasmus programme. We already have Kyr-gyz-German and Kyrgyz-European faculties in some of our universities, and we would like to expand this to other institutions. We are also striving for full implementation of the Bologna Process and we want to ensure that Kyrgyz diplomas are recognised internationally. We do not want to copy the European system, but we would like to use experi-ences and best practices from European education in order to develop our own system of accreditation compatible with the European one. Another priority is to improve our professional and vocational education, which we are doing in part-nership with representatives from the business sector.

European Times: What are some of the international partnerships the Ministry of Education has already established?

Kanatbek Sadykov: Kyrgyzstan has education partnerships with more than 60 countries, and Kyrgyz citizens have the opportunity to study in higher-edu-cation institutions abroad. In addition, around 15,000 foreign students from many different countries are currently enrolled in Kyrgyz universities. Kyr-gyzstan participates in the Com-monwealth of Independent States, the Shanghai Cooperation Organi-sation and the Eurasian Economic Community, all of which are very active in the fi eld of education. Kyr-gyzstan’s education sector has made impressive progress in our 20 years of independence and we will continue to move forward.

57

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Bringing Healthcare up to International Standards

The Kyrgyz Republic has been reforming

its healthcare system since independ-

ence, focussing on boosting the quality

and effi ciency of the country’s healthcare

facilities and services as well as improving

access to these services, particularly for

residents of rural areas and the poor.

The National Health Care System Reform Programme (Manas) 1996-2005 and the subsequent Manas-Taalimi programme 2006-2010 resulted in signifi -cant improvements in public healthcare services, fi nancing and medical education. The Ministry of Health and develop-ment partners extended the programme through 2011 to synchronise it with the Kyrgyz Republic’s national development strategy. The UK’s DFID, Germany’s KfW, the Swiss Agency for Development and Cooperation, the Swedish Inter-national Development Agency and the World Bank provided fi nancial support for healthcare reform measures while WHO, UNICEF, UNFPA and USAID gave parallel fi nancing.

Through KfW’s support, for example, emergency services were strengthened throughout the country in a project budgeted at €20 million. Other KfW-funded initiatives included HIV/AIDS and tuberculosis-prevention programmes, a maternal and paediatric programme, and technical-support projects. With USAID’s support, the Kyrgyz Republic adopted a single-payer system and an

institute of family medicine that includes over 700 centres staffed with specialists that USAID helped retrain. The USAID has also focussed on tuberculosis control.

Private healthcare growing

The private healthcare sector, which began with private pharmacies, has been growing steadily and now includes spe-cialised treatment centres offering outpa-tient care. Around half of the country’s private healthcare facilities are in the Bishkek area. The private pharmaceu-ticals sector is a signifi cant growth area since imported pharmaceuticals account for around 95% of the pharmaceuticals sold in the Kyrgyz Republic today.

Government spending on healthcare has increased as the Kyrgyz economy has grown; per capita public expenditures on health increased three-fold between 2005 and 2009 to reach 6.4% of GDP. The sector still needs signifi cant support in order to bring high-quality care to all members of the population, and the government welcomes foreign investors in healthcare products, equipment, facilities and services.

© IBC

National Centre of Cardiology and Internal Medicine

Togolok Moldo st. 3 - 720040 BishkekTel: +996 312 66 2318

nccim@elcat.kg

Health & Education

THE EUROPEAN TIMES

Signifi cant Progress in Upgrading Education SystemKanatbek Sadykov, Minister of

Education and Science, discusses recent

advances in Kyrgyzstan’s education sector.

European Times: How has education in Kyrgyzstan changed since independence?

Kanatbek Sadykov: There have been a number of signifi cant changes, and education has long been a top priority of the Kyrgyz government. In 2011, President Atambayev, who was then Prime Minister, began some ambitious education reforms, including raising teachers’ salaries to attract more people to the teaching profession. The current lack of teachers in the country at this moment is 1,307, while three years ago this defi cit was still at 3,500 teachers. We have also seen a major increase in the number of young children going to school. In addition, in the fi rst part of 2012 we achieved our goal of providing new desks, computers and new teaching methods to around 100 schools, and we continue to bring these improvements to more schools.

“Our main priority is to further upgrade our

curricula.”

European Times: What are your priorities for the education sector over the coming decade?

Kanatbek Sadykov: Our main priority is to further upgrade our curricula. We also want to improve teachers’ methods and implement new

Kanatbek Sadykov, Minister of Education and Science

standards of teaching. In the higher-education fi eld, we want to develop more partnerships with European and other international universities, for example through the Erasmus programme. We already have Kyr-gyz-German and Kyrgyz-European faculties in some of our universities, and we would like to expand this to other institutions. We are also striving for full implementation of the Bologna Process and we want to ensure that Kyrgyz diplomas are recognised internationally. We do not want to copy the European system, but we would like to use experi-ences and best practices from European education in order to develop our own system of accreditation compatible with the European one. Another priority is to improve our professional and vocational education, which we are doing in part-nership with representatives from the business sector.

European Times: What are some of the international partnerships the Ministry of Education has already established?

Kanatbek Sadykov: Kyrgyzstan has education partnerships with more than 60 countries, and Kyrgyz citizens have the opportunity to study in higher-edu-cation institutions abroad. In addition, around 15,000 foreign students from many different countries are currently enrolled in Kyrgyz universities. Kyr-gyzstan participates in the Com-monwealth of Independent States, the Shanghai Cooperation Organi-sation and the Eurasian Economic Community, all of which are very active in the fi eld of education. Kyr-gyzstan’s education sector has made impressive progress in our 20 years of independence and we will continue to move forward.

58

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

58

Education at a CrossroadsThe Kyrgyz Republic is in the midst of a number of ambitious

reforms. As a recent OECD/World Bank report points out,

the Kyrgyz education system, based on the Soviet model, has

received signifi cant public-sector funding but has been plagued

by disappointing results. The report recommends strengthening

school autonomy and accountability through school-performance

information to stakeholders and school-based management;

introducing mechanisms for more equitable distribution of

resources, such as per student fi nancing; and developing capacity

in the Ministry of Education for the defi nition and monitoring

of policies, quality standards, statistics and analysis.

Improving access to early-childhood education, par-ticularly for poor children in rural areas, is another priority. In a major step forward, the Kyrgyz govern-ment introduced a new law on pre-school education in 2009 with guidelines for the education and care of young children integrated into the State Standard on Pre-School Education.

The Kyrgyz education system includes elementary school, secondary education, and higher education through public universities as well as through spe-cialised institutions like the Kyrgyz-Russian, Kyrgyz-Turkish and American universities. Concerning higher education, goals for the Ministry of Education are to improve licensing and accreditation standards for higher-education institutions and to adopt an efficient system for enforcing these standards; to strengthen ties between universities and the private sector in order to better prepare Kyrgyz students to enter the labour force; to introduce a system to allow adults to pursue higher education for career development; and to bring Kyrgyz higher-education quality in line with interna-tional standards.

Adopting international systems

Adapting the Kyrgyz system to international ones involves transitioning to a three-cycle structure (Bachelor, Master and PhD diplomas); raising public awareness of the value of these degrees; introducing up-to-date teaching and assessment technologies in

accordance with international quality standards; and strengthening relationships with higher-education insti-tutions from other countries. A higher-education credit system based on workload and learning outcome is another project being considered.

The Ministry of Education also aims to create new teacher-training programmes, strengthen minimum qualifi cations for teachers and professors, and develop an external quality-assessment system with the help of independ-ent experts and international accreditation agencies. In addition, the Ministry of Education is reviewing fi nancing higher education, including ways to fairly distribute state funds and the possibility of student loans through Kyrgyz banks. Education in the Kyrgyz Republic is at a cross-roads today. The country has set its sights high in terms of education reform and welcomes international partners to help it reach these ambitious goals.

59

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Education at a CrossroadsThe Kyrgyz Republic is in the midst of a number of ambitious

reforms. As a recent OECD/World Bank report points out,

the Kyrgyz education system, based on the Soviet model, has

received signifi cant public-sector funding but has been plagued

by disappointing results. The report recommends strengthening

school autonomy and accountability through school-performance

information to stakeholders and school-based management;

introducing mechanisms for more equitable distribution of

resources, such as per student fi nancing; and developing capacity

in the Ministry of Education for the defi nition and monitoring

of policies, quality standards, statistics and analysis.

Improving access to early-childhood education, par-ticularly for poor children in rural areas, is another priority. In a major step forward, the Kyrgyz govern-ment introduced a new law on pre-school education in 2009 with guidelines for the education and care of young children integrated into the State Standard on Pre-School Education.

The Kyrgyz education system includes elementary school, secondary education, and higher education through public universities as well as through spe-cialised institutions like the Kyrgyz-Russian, Kyrgyz-Turkish and American universities. Concerning higher education, goals for the Ministry of Education are to improve licensing and accreditation standards for higher-education institutions and to adopt an efficient system for enforcing these standards; to strengthen ties between universities and the private sector in order to better prepare Kyrgyz students to enter the labour force; to introduce a system to allow adults to pursue higher education for career development; and to bring Kyrgyz higher-education quality in line with interna-tional standards.

Adopting international systems

Adapting the Kyrgyz system to international ones involves transitioning to a three-cycle structure (Bachelor, Master and PhD diplomas); raising public awareness of the value of these degrees; introducing up-to-date teaching and assessment technologies in

accordance with international quality standards; and strengthening relationships with higher-education insti-tutions from other countries. A higher-education credit system based on workload and learning outcome is another project being considered.

The Ministry of Education also aims to create new teacher-training programmes, strengthen minimum qualifi cations for teachers and professors, and develop an external quality-assessment system with the help of independ-ent experts and international accreditation agencies. In addition, the Ministry of Education is reviewing fi nancing higher education, including ways to fairly distribute state funds and the possibility of student loans through Kyrgyz banks. Education in the Kyrgyz Republic is at a cross-roads today. The country has set its sights high in terms of education reform and welcomes international partners to help it reach these ambitious goals.

Tourism & Culture

• Exceptional Opportunities for Tourism Investment

• Unspoiled Nature and Rich Cultural Heritage

• Tasty Dishes Made from Local Ingredients

• Diverse, Unique Cultural Attractions

“I invite international travellers and investors to come here and see for themselves what makes Kyrgyzstan an outstanding

tourism destination.”Daniyar Kazakov, Deputy Minister of Culture and Tourism

60

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

60

Exceptional Opportunities for Tourism InvestmentDaniyar Kazakov, Deputy Minister of Culture and Tourism,

discusses Kyrgyzstan’s tourism potential and the ministry’s

current projects.

European Times: How has Kyrgyzstan’s tourism sector evolved over the past fi ve years?

Daniyar Kazakov: We have defi nitely made a lot of progress in upgrading the tourism sector and making it more desirable for investors. One major achievement is Kyr-gyzstan’s adoption this year of visa-free entry for citizens of 44 countries. We have already seen an increase in tourism arrivals thanks to this. In addition, we have improved the legal framework for tourism projects, built new tourism infrastruc-ture, attracted domestic and foreign investment, stepped up our tourism marketing, created diverse new kinds of tourism offerings all over the country, and improved tourism services.

By the end of this year, we will have instituted new clas-sifi cation systems for hotels and for industry standards, and the government has created the Interdepartmental Com-mission on Tourism Development to coordinate the work of government agencies, local communities and the private sector in the fi eld of tourism.

European Times: What are the top attractions for tourists in Kyrgyzstan?

Daniyar Kazakov: Every region of the country has its own special attractions. In the capital, tourists can visit our many museums and cultural venues, while outside the capital, they can travel to our rugged mountains, national parks and nature preserves, lakes, spas and ski resorts.

European Times: Can you highlight tourism segments with particularly strong potential?

Daniyar Kazakov: Adventure tourism, spa and wellness tourism, cultural tourism, eco-tourism, tourism on the Silk Road, and sports tourism all have enormous potential in Kyrgyzstan. The Talas area in the Tian-Shan mountains is just one natural wonder with great prospects for eco-tourism, while the Osh region is ideal for cultural tourism. Saimaly Tash has the biggest cluster of petro-glyphs in the world, while the Chatkal region offers excellent opportuni-

Daniyar Kazakov, Deputy Minister of Culture and Tourism

ties for white water-rafting. The unique Issyk-Kul lake is an excellent place for rest and the Tian-Shan mountains provide numerous possibilities for mountain-biking, trekking, heli-copter skiing and skiing. These are just a few examples.

European Times: What is your message to potential investors in tourism projects?

Daniyar Kazakov: We are improving the investment climate and will continue to do so. Projects in the works include the creation of a special tourist zone in the lovely Issyk-Kul region, near Tamchy international airport.

Kyrgyzstan has a lot of mountains and may offer skiing services 6-7 months a year, so we welcome investors there. Also the construction of an Olympic training base on the shore of Issyk-Kul lake is very prospective.

I invite international travellers and investors to come here and see for themselves what makes Kyrgyzstan an outstand-ing tourism destination and investment target.

THE EUROPEAN TIMES

Golden Dragon Hotel

Five-Star Hotel Now Offers Serviced ApartmentsThe fi ve-star Golden Dragon Hotel,

which opened in 2005, focusses on

providing world-class personalised service.

The hotel’s management has assembled a

skilled staff of people with international

experience in the hospitality industry,

including natives of Kyrgyzstan who

have returned to the country after working

abroad. “We are training our staff to

make sure all our services meet inter-

national standards,” explains General

Manager Ermek Musuraliev.

The boutique property is ideally located in the centre of Bishkek and has 47 rooms, including four deluxe suites as well as singles, twins and deluxe rooms. Every room and suite is equipped with high-speed Internet access, international telephone lines, satellite TV, a safe-deposit box, air-conditioning and a mini bar.

Earlier this year, the Golden Dragon opened 32 fully equipped serviced apart-ments, two of which are luxurious pent-houses, in a building behind the hotel. Ermek Musuraliev says, “We believe that hotel-apartments will be the future of the hotel industry here in Bishkek. At the moment it is diffi cult to rent apartments in the city centre. The advantage of our hotel-apartments is that not only do guests have a comfortable apartment with

a full range of services, but they can also count on easy check-in, just like in a hotel.”

Range of world-class amenities

The Golden Dragon offers a conference hall, a banquet facility, a catering service, events organisation, a health club and gym, a Jacuzzi, Finnish and Turkish saunas, a restaurant and bar, and an open-air swimming pool. Massages and spa treatments are available on request.

Defi ning the Golden Dragon’s competi-tive edge, Ermek Musuraliev cites the hotel’s extra-spacious rooms and apart-ments, its skilled and friendly services, its range of special offers and its fl exible prices. He says, “We know the right approach towards our guests and have a huge willingness to develop our skills. We also organise several tours for our guests, from city walks to visits of art galleries, skiing trips and tours of the countryside.”

The Golden Dragon aims to play a key role in boosting Kyrgyzstan’s tourism

industry, which offers enormous potential but still faces a number of challenges. Ermek Musuraliev says, “Our government has recently made visa regulations much easier, but there are still some problems with fl ight con-nectivity to Bishkek. Kyrgyzstan has beautiful landscapes and mountains, and more tourism potential than any other Central Asian country. Europe should give our country a chance and believe in Kyrgyzstan.”

60 Elebaev Street 720005 Bishkek

Tel: +996 312 90 2771www.gdhotel.kg

gdhotel@gdhotel.kg

61

THE EUROPEAN TIMES

Tourism & Culture

THE EUROPEAN TIMES

Golden Dragon Hotel

Five-Star Hotel Now Offers Serviced ApartmentsThe fi ve-star Golden Dragon Hotel,

which opened in 2005, focusses on

providing world-class personalised service.

The hotel’s management has assembled a

skilled staff of people with international

experience in the hospitality industry,

including natives of Kyrgyzstan who

have returned to the country after working

abroad. “We are training our staff to

make sure all our services meet inter-

national standards,” explains General

Manager Ermek Musuraliev.

The boutique property is ideally located in the centre of Bishkek and has 47 rooms, including four deluxe suites as well as singles, twins and deluxe rooms. Every room and suite is equipped with high-speed Internet access, international telephone lines, satellite TV, a safe-deposit box, air-conditioning and a mini bar.

Earlier this year, the Golden Dragon opened 32 fully equipped serviced apart-ments, two of which are luxurious pent-houses, in a building behind the hotel. Ermek Musuraliev says, “We believe that hotel-apartments will be the future of the hotel industry here in Bishkek. At the moment it is diffi cult to rent apartments in the city centre. The advantage of our hotel-apartments is that not only do guests have a comfortable apartment with

a full range of services, but they can also count on easy check-in, just like in a hotel.”

Range of world-class amenities

The Golden Dragon offers a conference hall, a banquet facility, a catering service, events organisation, a health club and gym, a Jacuzzi, Finnish and Turkish saunas, a restaurant and bar, and an open-air swimming pool. Massages and spa treatments are available on request.

Defi ning the Golden Dragon’s competi-tive edge, Ermek Musuraliev cites the hotel’s extra-spacious rooms and apart-ments, its skilled and friendly services, its range of special offers and its fl exible prices. He says, “We know the right approach towards our guests and have a huge willingness to develop our skills. We also organise several tours for our guests, from city walks to visits of art galleries, skiing trips and tours of the countryside.”

The Golden Dragon aims to play a key role in boosting Kyrgyzstan’s tourism

industry, which offers enormous potential but still faces a number of challenges. Ermek Musuraliev says, “Our government has recently made visa regulations much easier, but there are still some problems with fl ight con-nectivity to Bishkek. Kyrgyzstan has beautiful landscapes and mountains, and more tourism potential than any other Central Asian country. Europe should give our country a chance and believe in Kyrgyzstan.”

60 Elebaev Street 720005 Bishkek

Tel: +996 312 90 2771www.gdhotel.kg

gdhotel@gdhotel.kg

62

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

62

Park Hotel

Five-Star Boutique Hotel Opens New ExtensionThe Park Hotel, located in the centre of Bishkek, offers a

winning combination of five-star international standards

and truly personalised service. The internationally oriented

boutique hotel has almost 70 rooms, ranging from single

deluxe to suites. The recently opened new section of the

hotel offers mainly serviced apartments for longer stays.

Each room is equipped with satellite TV, air conditioner,

Internet access, lock box, mini bar and telephone with

international access.

Okmot Almakuchukov is the co-owner of the hotel. He says, “We wanted to build a hotel in the city that could live up to international service standards and support the country’s economic development as well as the growth of the hospitality sector. We started off as a local family business and grew into a successful private enterprise with multiple properties such as the Club Hotel Royal Beach at Issyk-Kul lake. Our main focus is making our guests feel at home.”

The guests of Park Hotel can enjoy sophisticated tradi-tional and European cuisine in the restaurant. For recrea-tion purposes the hotel offers a fi tness centre, swimming pool and a relaxing spa, sauna and hammam. Ideally located in the historical centre of Bishkek, the Park Hotel mainly serves corporate clients, government offi cials and members of international organisations in Kyrgyzstan. The hotel offers state-of-the-art conference facilities, which can serve for small boardroom meetings to international seminars. For leisure purposes, Park Hotel offers a broad range of tourism

xxxxxx

THE EUROPEAN TIMES

Orozbekova Street 87Bishkek

Tel: +996 312 66 5518hotel@parkhotel.kgwww.parkhotel.kg

packages. For instance guests can book organised visits to Kyrgyzstan’s beautiful mountain areas.

In the increasingly competitive fi ve-star hotel market in Bishkek, Park Hotel stands out for its friendly and professional service. To live up to international hospitality standards and demands, the staff is continuously trained to maintain and further develop their professional skills, making Park Hotel the perfect choice to stay in Bishkek.

As a former Minister of Tourism, Okmot Almakuchukov is interested in developing his country’s tourism industry. Kyrgyzstan is part of the ancient Silk Road, the tradi-tional trading route connecting the East with the West. To realise the full potential of this authentic heritage, close cooperation between the neighbouring countries along the Silk Road is required in order to develop it into a fi rst choice international tourist attraction. The country also offers diverse opportunities in terms of eco-tourism and extreme sports. This was illustrated by the hosting of the World Championship in Multisports ‘Red Goluas’ almost ten years ago. Recent economic and political develop-ments and reforms facilitate the opportunity for realising similar future events.

In order to take advantage of this diverse tourism potential and opportunities in Kyrgyzstan, focus needs to be on foreign direct investments into the infrastructure as well as directly into the hospitality sector itself. Tourism is one of the key economic sectors in Kyrgyzstan which have sig-nifi cant investment prospects. European investors should realise that within a 2,000 km radius around Bishkek,

there live more than 2 billion people, making it the ideal hub for Central Asia. What is required now, are more direct fl ights to the country connecting it to international key markets. At the same time other means of transporta-tion and their infrastructure should be further developed such as motorways and railways.

The visa free regulations for 44 countries initiated by the Kyrgyz government in 2012 are a positive development in opening up Kyrgyzstan towards Europe and the rest of the World. Foreign investors can rely on the guidance and support of local Kyrgyz entrepreneurs for future business develop-ments, such as joint ventures for projects in the tourism and hospitality industry. The biggest asset of the Kyrgyz people is their openness which will be the way to success. We wish you a warm welcome!

63

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Park Hotel

Five-Star Boutique Hotel Opens New ExtensionThe Park Hotel, located in the centre of Bishkek, offers a

winning combination of five-star international standards

and truly personalised service. The internationally oriented

boutique hotel has almost 70 rooms, ranging from single

deluxe to suites. The recently opened new section of the

hotel offers mainly serviced apartments for longer stays.

Each room is equipped with satellite TV, air conditioner,

Internet access, lock box, mini bar and telephone with

international access.

Okmot Almakuchukov is the co-owner of the hotel. He says, “We wanted to build a hotel in the city that could live up to international service standards and support the country’s economic development as well as the growth of the hospitality sector. We started off as a local family business and grew into a successful private enterprise with multiple properties such as the Club Hotel Royal Beach at Issyk-Kul lake. Our main focus is making our guests feel at home.”

The guests of Park Hotel can enjoy sophisticated tradi-tional and European cuisine in the restaurant. For recrea-tion purposes the hotel offers a fi tness centre, swimming pool and a relaxing spa, sauna and hammam. Ideally located in the historical centre of Bishkek, the Park Hotel mainly serves corporate clients, government offi cials and members of international organisations in Kyrgyzstan. The hotel offers state-of-the-art conference facilities, which can serve for small boardroom meetings to international seminars. For leisure purposes, Park Hotel offers a broad range of tourism

xxxxxx

THE EUROPEAN TIMES

Orozbekova Street 87Bishkek

Tel: +996 312 66 5518hotel@parkhotel.kgwww.parkhotel.kg

packages. For instance guests can book organised visits to Kyrgyzstan’s beautiful mountain areas.

In the increasingly competitive fi ve-star hotel market in Bishkek, Park Hotel stands out for its friendly and professional service. To live up to international hospitality standards and demands, the staff is continuously trained to maintain and further develop their professional skills, making Park Hotel the perfect choice to stay in Bishkek.

As a former Minister of Tourism, Okmot Almakuchukov is interested in developing his country’s tourism industry. Kyrgyzstan is part of the ancient Silk Road, the tradi-tional trading route connecting the East with the West. To realise the full potential of this authentic heritage, close cooperation between the neighbouring countries along the Silk Road is required in order to develop it into a fi rst choice international tourist attraction. The country also offers diverse opportunities in terms of eco-tourism and extreme sports. This was illustrated by the hosting of the World Championship in Multisports ‘Red Goluas’ almost ten years ago. Recent economic and political develop-ments and reforms facilitate the opportunity for realising similar future events.

In order to take advantage of this diverse tourism potential and opportunities in Kyrgyzstan, focus needs to be on foreign direct investments into the infrastructure as well as directly into the hospitality sector itself. Tourism is one of the key economic sectors in Kyrgyzstan which have sig-nifi cant investment prospects. European investors should realise that within a 2,000 km radius around Bishkek,

there live more than 2 billion people, making it the ideal hub for Central Asia. What is required now, are more direct fl ights to the country connecting it to international key markets. At the same time other means of transporta-tion and their infrastructure should be further developed such as motorways and railways.

The visa free regulations for 44 countries initiated by the Kyrgyz government in 2012 are a positive development in opening up Kyrgyzstan towards Europe and the rest of the World. Foreign investors can rely on the guidance and support of local Kyrgyz entrepreneurs for future business develop-ments, such as joint ventures for projects in the tourism and hospitality industry. The biggest asset of the Kyrgyz people is their openness which will be the way to success. We wish you a warm welcome!

64

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

64

Unspoiled Nature and Rich Cultural Heritage

The Kyrgyz Republic’s participation in the International

Tourism Fair held in Berlin in March 2012 signalled the

country’s drive to position itself as a high-potential entry

on the global tourism circuit. With its rugged mountains,

unspoiled lakes, long history as a trade hub on the fabled

Silk Road, and rich cultural heritage, the Kyrgyz Republic

has a lot to offer travellers in search of off-the-beaten-track

destinations.

Mountains cover over 90% of the country, making the Kyrgyz Republic a paradise for lovers of the outdoors. In summer, visitors can go trekking, fishing or horse-back-riding along mountain trails or join guided tours that often include sleeping in a yurt. Mountain lakes are another attraction. Issyk-Kul lake, the second-larg-est alpine lake in the world, has spas and ski resorts and has been singled out as a top tourism development area thanks to its natural beauty and healthy climate.

Ideal choice for eco-tourism

In winter, the Kyrgyz Republic offers all kinds of oppor-tunities for skiing and other winter sports, and several ski resorts have been developed throughout the country. One is near Karakol, where the Soviet Olympic ski

team once trained. The Kyrgyz Republic is also a fas-cinating choice for cultural tourism thanks to its well- preserved traditions, colourful local festivals and sports, and tradition of welcoming foreigners. And, thanks to its unspoiled natural attractions and cultural heritage, the Kyrgyz Republic is an ideal eco-tourism choice.

To make the most of the country’s tourism appeal, the Kyrgyz government recently changed the visa regime to allow for visa-free entry for citizens of 44 countries. In addition, the government has upgraded regulations for tourism projects, launched a classification system for hotels, invested in new tourism infrastructure and stream-lined the process of investing in tourism projects. The new Interdepartmental Commission on Tourism Devel-opment serves as a liaison between the government, local communities and the private sector concerning tourism initiatives. The Ministry of Tourism and Culture has also announced a plan for the tourism industry up to 2014 and has stepped up its international marketing efforts. Challenges include improving tourism infrastructure, coping with the unrest that has caused some countries to issue travellers’ advisories for certain parts of the country, and attracting more airlines to offer flights to Bishkek. The Kyrgyz Republic welcomes international travellers and investors in tourism projects, and as the country’s unique tourism appeal becomes better known, visitor numbers are certain to grow rapidly.

Issyk-Kul lake

THE EUROPEAN TIMES

Hyatt Regency Bishkek

Five-Star Services in the Heart of BishkekThe Hyatt Regency Bishkek, Kyrgyzstan’s

only international fi ve-star hotel, serves as

a benchmark for the country’s hotel sector.

As Gozde Eren, General Manager, points

out, “Hyatt is a pioneer, a standard-

bearer of high-quality service in Central

Asia’s hospitality industry.”

The hotel is ideally located in the heart of the city near all major cultural and business attractions and only a 35-minute drive from Bishkek’s airport. It offers 178 luxurious rooms and suites with breathtaking views and best-in-class amenities, including high-speed Internet access, a wide range of food and beverage options, a spa and fi tness centre and an outdoor pool. The hotel also has six meeting and conference venues as well as banquet facilities and catering services. Gozde Eren says, “Hyatt customers coming to Kyrgyzstan are going out of their comfort zones, into a place most of them do not know, but the Hyatt offers them a safe home-away-from-home.”

The Hyatt Regency Bishkek excels at serving global travellers. Gozde Eren explains, “Our staff members come from all over the world, which brings

diversity and an awareness of what inter-national guests expect in a hotel. Hyatt has fi ne-tuned its services through the years to meet the highest standards, and there are great advantages to staying with an international chain, from the booking system to the loyalty programmes and from technical equipment to creativity.”

Exceptional tourism appeal

Business travellers make up most of the Hyatt Regency Bishkek’s guests but Gozde Eren believes the hotel will welcome more leisure travellers as the world becomes more aware of Kyr-gyzstan’s tourism appeal. She says, “Bishkek could be the Switzerland of Central Asia. Since mountains cover 94% of the country, Kyrgyzstan should be on everybody’s map for winter sports. For tourism investors, this country is a blank slate with enormous potential.”

The Hyatt Regency Bishkek strongly supports local tourism-development projects and recently partnered with the US Embassy in a programme to train hotel managers and staff from the Issyk-Kul lake area.

The Hyatt Regency Bishkek’s guests include representatives from the World Bank, the IMF and other international organisations as well as airline crews, embassy staff and global business trav-ellers. Gozde Eren says that guest totals are certain to rise as more airline connec-tions to Kyrgyzstan open up. She adds, “Kyrgyzstan’s strategic position makes it ideal for developing a strong airline hub connecting Europe and Asia.” She urges international investors to follow Hyatt’s example and take a closer look at beautiful, high-potential Kyrgyzstan.

Hyatt Regency Bishkek191 Abdrahmanov Street,

720011 BishkekTel: +996 312 66 12 34

Bishkek.regency@hyatt.comwww.bishkek.hyatt.com

Gozde Eren, General Manager

65

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Unspoiled Nature and Rich Cultural Heritage

The Kyrgyz Republic’s participation in the International

Tourism Fair held in Berlin in March 2012 signalled the

country’s drive to position itself as a high-potential entry

on the global tourism circuit. With its rugged mountains,

unspoiled lakes, long history as a trade hub on the fabled

Silk Road, and rich cultural heritage, the Kyrgyz Republic

has a lot to offer travellers in search of off-the-beaten-track

destinations.

Mountains cover over 90% of the country, making the Kyrgyz Republic a paradise for lovers of the outdoors. In summer, visitors can go trekking, fishing or horse-back-riding along mountain trails or join guided tours that often include sleeping in a yurt. Mountain lakes are another attraction. Issyk-Kul lake, the second-larg-est alpine lake in the world, has spas and ski resorts and has been singled out as a top tourism development area thanks to its natural beauty and healthy climate.

Ideal choice for eco-tourism

In winter, the Kyrgyz Republic offers all kinds of oppor-tunities for skiing and other winter sports, and several ski resorts have been developed throughout the country. One is near Karakol, where the Soviet Olympic ski

team once trained. The Kyrgyz Republic is also a fas-cinating choice for cultural tourism thanks to its well- preserved traditions, colourful local festivals and sports, and tradition of welcoming foreigners. And, thanks to its unspoiled natural attractions and cultural heritage, the Kyrgyz Republic is an ideal eco-tourism choice.

To make the most of the country’s tourism appeal, the Kyrgyz government recently changed the visa regime to allow for visa-free entry for citizens of 44 countries. In addition, the government has upgraded regulations for tourism projects, launched a classification system for hotels, invested in new tourism infrastructure and stream-lined the process of investing in tourism projects. The new Interdepartmental Commission on Tourism Devel-opment serves as a liaison between the government, local communities and the private sector concerning tourism initiatives. The Ministry of Tourism and Culture has also announced a plan for the tourism industry up to 2014 and has stepped up its international marketing efforts. Challenges include improving tourism infrastructure, coping with the unrest that has caused some countries to issue travellers’ advisories for certain parts of the country, and attracting more airlines to offer flights to Bishkek. The Kyrgyz Republic welcomes international travellers and investors in tourism projects, and as the country’s unique tourism appeal becomes better known, visitor numbers are certain to grow rapidly.

Issyk-Kul lake

Tourism & Culture

THE EUROPEAN TIMES

Hyatt Regency Bishkek

Five-Star Services in the Heart of BishkekThe Hyatt Regency Bishkek, Kyrgyzstan’s

only international fi ve-star hotel, serves as

a benchmark for the country’s hotel sector.

As Gozde Eren, General Manager, points

out, “Hyatt is a pioneer, a standard-

bearer of high-quality service in Central

Asia’s hospitality industry.”

The hotel is ideally located in the heart of the city near all major cultural and business attractions and only a 35-minute drive from Bishkek’s airport. It offers 178 luxurious rooms and suites with breathtaking views and best-in-class amenities, including high-speed Internet access, a wide range of food and beverage options, a spa and fi tness centre and an outdoor pool. The hotel also has six meeting and conference venues as well as banquet facilities and catering services. Gozde Eren says, “Hyatt customers coming to Kyrgyzstan are going out of their comfort zones, into a place most of them do not know, but the Hyatt offers them a safe home-away-from-home.”

The Hyatt Regency Bishkek excels at serving global travellers. Gozde Eren explains, “Our staff members come from all over the world, which brings

diversity and an awareness of what inter-national guests expect in a hotel. Hyatt has fi ne-tuned its services through the years to meet the highest standards, and there are great advantages to staying with an international chain, from the booking system to the loyalty programmes and from technical equipment to creativity.”

Exceptional tourism appeal

Business travellers make up most of the Hyatt Regency Bishkek’s guests but Gozde Eren believes the hotel will welcome more leisure travellers as the world becomes more aware of Kyr-gyzstan’s tourism appeal. She says, “Bishkek could be the Switzerland of Central Asia. Since mountains cover 94% of the country, Kyrgyzstan should be on everybody’s map for winter sports. For tourism investors, this country is a blank slate with enormous potential.”

The Hyatt Regency Bishkek strongly supports local tourism-development projects and recently partnered with the US Embassy in a programme to train hotel managers and staff from the Issyk-Kul lake area.

The Hyatt Regency Bishkek’s guests include representatives from the World Bank, the IMF and other international organisations as well as airline crews, embassy staff and global business trav-ellers. Gozde Eren says that guest totals are certain to rise as more airline connec-tions to Kyrgyzstan open up. She adds, “Kyrgyzstan’s strategic position makes it ideal for developing a strong airline hub connecting Europe and Asia.” She urges international investors to follow Hyatt’s example and take a closer look at beautiful, high-potential Kyrgyzstan.

Hyatt Regency Bishkek191 Abdrahmanov Street,

720011 BishkekTel: +996 312 66 12 34

Bishkek.regency@hyatt.comwww.bishkek.hyatt.com

Gozde Eren, General Manager

66

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

66

Tasty Dishes Made from Local IngredientsKyrgyz cuisine makes the most of

readily available ingredients in this

rugged land. Main dishes are based

mainly on mutton, horse meat, sheep fat,

milk products, and seasonal fruits and

vegetables, prepared in ways that would

fi t a nomadic lifestyle. In larger cities like

Bishkek, Osh, Jalal-Abad and Karakol,

many different regional and international

dishes can be sampled in restaurants, but

in rural areas, local cuisine predominates.

Typical Kyrgyz main courses include horse-meat sausages, roasted sheep’s liver, and beshbarmak, considered to be the Kyrgyz national dish. Beshbarmak is horse meat (and sometimes mutton or beef) boiled for several hours and served over homemade noodles sprinkled with parsley and coriander. If mutton is used, a boiled sheep’s head, considered a great delicacy, is placed on the table in front of the most honoured guest.

Shashlik, skewered chunks of marinated meat or fi sh grilled over coals, is served in restaurants and by street vendors. Shorpa (or shorpo) is a meat-and-vegetable soup, while paloo (pilaf), another popular dish, is pieces of meat fried in a large cast-iron kettle and mixed with fried shredded carrots and cooked rice, with fried garlic cloves and hot red peppers on top. Uzgen paloo is made with rice from the southern Uzgen region, while in shirin paloo, dried fruits replace meat.

Popular noodle dishes

Noodles and other pastry dishes are very common in both restaurants and

Manty

homes. Manty are steamed dumplings fi lled with ground meat and onions, while samsi are like Indian samosas, fl aky pastry fi lled with meat and veg-etables and fried. Lagman (or laghman) is thick homemade noodles covered in chopped peppers and other vegetables and served in a spicy, vinegary sauce.

With their meals, Kyrgyz people eat fl at bread, nan or lepyoshka, cooked over coals in a clay oven. Kalama is an unleavened bread baked on the top of a stove and is the most common bread eaten in yurt camps. Kattama is unleav-ened fl at bread rolled with butter. Tea (chai) is the most popular beverage, and guests in a traditional Kyrgyz household are always offered nan and chai. Kymyz is a slightly alcoholic drink made from fermented mare’s milk, typical of a nomadic culture. Maksym, a slightly fi zzy drink made by fermenting grains; jarma, also made from grains but not fermented; and fi zzy chalap are other popular beverages. Sheep’s milk and camel’s milk are also highly prized. The favourite Kyrgyz sweetener is rich mountain honey.

THE EUROPEAN TIMES

Genatsvale Restaurant

Upscale Restaurant Offers Fine Georgian Cuisine in BishkekGenatsvale Restaurant brings delicious

Georgian cuisine and wines to Bishkek.

Founded in 2011, the restaurant has quickly

earned a loyal local following for its gourmet

menus, impeccable service, two convivial

bars, and spectacular views of the city centre

and the Tian-Shan Mountains from an

expansive fourth-fl oor outdoor terrace.

The restaurant is very popular among both locals and foreigners. Director Mikhail Shetstobitv explains, “We focus on quality rather than quantity, which is why we attract a very exclusive clientele. We are seeing more and more interna-tional customers, who now make up around 30% of our guests. People who have travelled and lived all over the world appreciate our exceptional cuisine, wines, service and authentic Georgian atmosphere.” The restaurant’s 800 sq m of dining areas and bars, which are the ideal choice for special events, also set Genatsvale Restaurant apart from other restaurants in the city.

In fact, Genatsvale Restaurant is often chosen as the venue for private parties for local expats as well as for embassy banquets and other exclusive gatherings. The American Chamber of Commerce in Kyrgyzstan held its

Nani Bregvadse, famous Georgian singer and Mikhail Shetstobitv, director

Members’ Day event in the restaurant earlier this year, and Bishkek’s Interna-tional Club is another leading organisa-tion which organises gatherings there.

The restaurant’s renowned chefs are from Tbilisi and Kutaisi, Georgia, and employ authentic herbs and spices from the Caucasus as well as fresh, natural local ingredients. Their gourmet creations give diners a real taste of Georgia’s varied, innovative culinary heritage. The restaurant’s extensive choice of Georgian wines is another plus for guests.

New outdoor pavilion with convivial lounge bar

Genatsvale Restaurant continues to improve its facilities and is currently getting a makeover to enhance the authentic Georgian style of the dining room. In addition, the restaurant will soon have a new outdoor pavilion so that guests can enjoy the wonderful views from the terrace throughout the year. “We

know our guests will appreciate the after-dinner lounge bar in the new pavilion, which overlooks the city and snow-capped mountains,” Mikhail Shetstobitv says.

The new lounge-bar will be able to accommodate up to around 120 guests and will be open from 11pm to 4am. Mikhail Shetstobitv concludes, “In our restaurant and bars, we always give our guests a warm welcome. We have brought the heart and soul of Georgia to Bishkek and combined this with authentic Kyrgyz hospitality.”

Genatsvale RestaurantGorkiy St. 27/1, Vefa Center, 4th fl oor

BishkekTel: +996 555 389 988

info@genatsvale.kg - www.genatsvale.kg

67

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Tasty Dishes Made from Local IngredientsKyrgyz cuisine makes the most of

readily available ingredients in this

rugged land. Main dishes are based

mainly on mutton, horse meat, sheep fat,

milk products, and seasonal fruits and

vegetables, prepared in ways that would

fi t a nomadic lifestyle. In larger cities like

Bishkek, Osh, Jalal-Abad and Karakol,

many different regional and international

dishes can be sampled in restaurants, but

in rural areas, local cuisine predominates.

Typical Kyrgyz main courses include horse-meat sausages, roasted sheep’s liver, and beshbarmak, considered to be the Kyrgyz national dish. Beshbarmak is horse meat (and sometimes mutton or beef) boiled for several hours and served over homemade noodles sprinkled with parsley and coriander. If mutton is used, a boiled sheep’s head, considered a great delicacy, is placed on the table in front of the most honoured guest.

Shashlik, skewered chunks of marinated meat or fi sh grilled over coals, is served in restaurants and by street vendors. Shorpa (or shorpo) is a meat-and-vegetable soup, while paloo (pilaf), another popular dish, is pieces of meat fried in a large cast-iron kettle and mixed with fried shredded carrots and cooked rice, with fried garlic cloves and hot red peppers on top. Uzgen paloo is made with rice from the southern Uzgen region, while in shirin paloo, dried fruits replace meat.

Popular noodle dishes

Noodles and other pastry dishes are very common in both restaurants and

Manty

homes. Manty are steamed dumplings fi lled with ground meat and onions, while samsi are like Indian samosas, fl aky pastry fi lled with meat and veg-etables and fried. Lagman (or laghman) is thick homemade noodles covered in chopped peppers and other vegetables and served in a spicy, vinegary sauce.

With their meals, Kyrgyz people eat fl at bread, nan or lepyoshka, cooked over coals in a clay oven. Kalama is an unleavened bread baked on the top of a stove and is the most common bread eaten in yurt camps. Kattama is unleav-ened fl at bread rolled with butter. Tea (chai) is the most popular beverage, and guests in a traditional Kyrgyz household are always offered nan and chai. Kymyz is a slightly alcoholic drink made from fermented mare’s milk, typical of a nomadic culture. Maksym, a slightly fi zzy drink made by fermenting grains; jarma, also made from grains but not fermented; and fi zzy chalap are other popular beverages. Sheep’s milk and camel’s milk are also highly prized. The favourite Kyrgyz sweetener is rich mountain honey.

THE EUROPEAN TIMES

Genatsvale Restaurant

Upscale Restaurant Offers Fine Georgian Cuisine in BishkekGenatsvale Restaurant brings delicious

Georgian cuisine and wines to Bishkek.

Founded in 2011, the restaurant has quickly

earned a loyal local following for its gourmet

menus, impeccable service, two convivial

bars, and spectacular views of the city centre

and the Tian-Shan Mountains from an

expansive fourth-fl oor outdoor terrace.

The restaurant is very popular among both locals and foreigners. Director Mikhail Shetstobitv explains, “We focus on quality rather than quantity, which is why we attract a very exclusive clientele. We are seeing more and more interna-tional customers, who now make up around 30% of our guests. People who have travelled and lived all over the world appreciate our exceptional cuisine, wines, service and authentic Georgian atmosphere.” The restaurant’s 800 sq m of dining areas and bars, which are the ideal choice for special events, also set Genatsvale Restaurant apart from other restaurants in the city.

In fact, Genatsvale Restaurant is often chosen as the venue for private parties for local expats as well as for embassy banquets and other exclusive gatherings. The American Chamber of Commerce in Kyrgyzstan held its

Nani Bregvadse, famous Georgian singer and Mikhail Shetstobitv, director

Members’ Day event in the restaurant earlier this year, and Bishkek’s Interna-tional Club is another leading organisa-tion which organises gatherings there.

The restaurant’s renowned chefs are from Tbilisi and Kutaisi, Georgia, and employ authentic herbs and spices from the Caucasus as well as fresh, natural local ingredients. Their gourmet creations give diners a real taste of Georgia’s varied, innovative culinary heritage. The restaurant’s extensive choice of Georgian wines is another plus for guests.

New outdoor pavilion with convivial lounge bar

Genatsvale Restaurant continues to improve its facilities and is currently getting a makeover to enhance the authentic Georgian style of the dining room. In addition, the restaurant will soon have a new outdoor pavilion so that guests can enjoy the wonderful views from the terrace throughout the year. “We

know our guests will appreciate the after-dinner lounge bar in the new pavilion, which overlooks the city and snow-capped mountains,” Mikhail Shetstobitv says.

The new lounge-bar will be able to accommodate up to around 120 guests and will be open from 11pm to 4am. Mikhail Shetstobitv concludes, “In our restaurant and bars, we always give our guests a warm welcome. We have brought the heart and soul of Georgia to Bishkek and combined this with authentic Kyrgyz hospitality.”

Genatsvale RestaurantGorkiy St. 27/1, Vefa Center, 4th fl oor

BishkekTel: +996 555 389 988

info@genatsvale.kg - www.genatsvale.kg

Tourism & Culture

68

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

68

Kyrgyz Konyagy

Turning Flavourful Local Grapes into Award-Winning CognacsKyrgyz Konyagy (Kyrgyz Cognac) produces top-quality cognacs,

brandies and other drinks which have earned a loyal following in

the local market as well as abroad. Founded over 50 years ago,

Kyrgyz Konyagy has developed world-class expertise. It employs

the latest technologies, high-quality ingredients and traditional

techniques, including the use of oak barrels, to manufacture its

distinctive products. Kyrgyz Konyagy’s 1.7-hectare plant is the

only cognac production facility in the Kyrgyz Republic.

A full range of more than 10 brands of cognac, several brandies and other cognac-based drinks are now part of the Kyrgyz Konyagy portfolio. Depending on the brand, Kyrgyz Konyagy’s cognacs are aged from three to 20 years or more in oak barrels, and all develop a characteristic amber colour as well as fl oral aromas and harmonious tastes.

One of the company’s signature cognacs is a 20-year-old OS Enesay, which combines pure waters from Kyrgyz mountain streams and locally grown grapes distilled and then aged in oak barrels. Thanks to the long aging process, this cognac has a particularly complex taste and has won a number of awards.

Kyrgyz Konyagy’s mission is to transform sweet, ripe grapes into cognacs characterised by subtle, complex fl avours. New entries to Kyrgyz Konyagy’s product portfolio include cognacs fl avoured with cedar, coffee, cherries and chocolate, as well as Arashan, a unique balsam-based alcoholic beverage made from balsam berries, pure Kyrgyz mountain honey and more than 20 naturally grown medicinal plants.

‘Cognac of the Year’ prize and many other awards

All Kyrgyz Konyagy’s cognacs, brandies and other beverages are produced by skilled professionals who ensure the highest international quality standards. Kyrgyz Konyagy operates a modern production line and uses state-of-the-art automatic Italian equipment to bottle and label its products, handling around 3,000 bottles per hour.

The company’s products have won a number of awards in international tastings, including medals for Kyrgyz Konyagy’s KS Manas-1000, KVVK Manas and KV Kyr-gyzstan brands at the World Association of Viticulture and Wine. Kyrgyz Konyagy also received a ‘European Quality’ award in 2009, and later that year the company’s OS Bakay 30-year-old cognac received a gold medal and was named ‘Best Cognac of the Year’ at a prestigious international event held in Yalta.

Kyrgyz Konyagy will continue to focus on high quality and innovation to produce exceptional cognacs, brandies and other beverages for connoisseurs worldwide.

Kyrgyz KonyagyMurmansk st. 250/1 - Bishkek

Tel: +996 312 69 9355offi ce@cognac.kg - www.cognac.kg

THE EUROPEAN TIMES

Diverse, Unique Cultural AttractionsWith its rugged mountain landscapes

which required herders to move their

fl ocks throughout the year, the Kyrgyz

Republic has a centuries-old nomadic

tradition that is still alive and well today.

Everything in ancient Kyrgyz culture is

related to nomadic life, from clothing and

food to the transportable yurt and a strong

oral culture that includes legends passed

down for hundreds of years.

‘Manas’, an epic poem preserved by generations of Kyrgyz storytellers, is still presented orally to audiences throughout the country. It contains more than a million lines and is 20 times as long as the ‘Odyssey’ and ‘Iliad’ combined. Focussing on the exploits of a Kyrgyz hero, Manas, it recounts the creation of the Kyrgyz homeland beginning in around the 10th century and illustrates the Kyrgyz people’s reverence for their cultural traditions.

Traditional camping in a yurt

While most Kyrgyz people live in modern homes, they cherish their nomadic heritage. In summer, many Kyrgyz people still spend time in traditional yurts with their herds of animals, and several yurt camps cater to tourists in search of an authentic camping experience. A traditional yurt camp, or jailoo, is a collection of yurts – known as boz ui in the Kyrgyz Republic – around a high-altitude summer pasture. Boz ui are entirely handmade and

Traditional yurt

© Elisa Locci-Dreamstime.com

Kyrgyz families can demonstrate to visitors the process of erecting and taking down one of these stable but portable dwellings. Traditional games often played at a yurt camp include kok boru, a rugged kind of polo.

The Kyrgyz handicraft tradition also still flourishes. Kyrgyz women create felt slippers, bags, decorative panels and traditional hats as well as colourful carpets, called shyrdaks, in a variety of sizes and traditional patterns. Naryn oblast is a well-known centre for shyrdak-makers.

Music is also central to Kyrgyz culture, and no festival is complete without concerts and dancing. Tradi-

tional Kyrgyz instruments include the komuz, a three-stringed pear-shaped instrument usually made of apricot wood. The choor, a wind instrument; a clay ocarina, the chopo choor; and the ooz komuz (a mouth harp), are also very popular.

The Kyrgyz mountains, which made travelling through the country difficult in the past, have also resulted in great cultural diversity in one small country as different tribes developed their own cultures; customs in the northern part of the country are different from those of the more agri-cultural south. Diverse, colourful and unique, Kyrgyz culture is waiting to be experienced by visitors.

69

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Kyrgyz Konyagy

Turning Flavourful Local Grapes into Award-Winning CognacsKyrgyz Konyagy (Kyrgyz Cognac) produces top-quality cognacs,

brandies and other drinks which have earned a loyal following in

the local market as well as abroad. Founded over 50 years ago,

Kyrgyz Konyagy has developed world-class expertise. It employs

the latest technologies, high-quality ingredients and traditional

techniques, including the use of oak barrels, to manufacture its

distinctive products. Kyrgyz Konyagy’s 1.7-hectare plant is the

only cognac production facility in the Kyrgyz Republic.

A full range of more than 10 brands of cognac, several brandies and other cognac-based drinks are now part of the Kyrgyz Konyagy portfolio. Depending on the brand, Kyrgyz Konyagy’s cognacs are aged from three to 20 years or more in oak barrels, and all develop a characteristic amber colour as well as fl oral aromas and harmonious tastes.

One of the company’s signature cognacs is a 20-year-old OS Enesay, which combines pure waters from Kyrgyz mountain streams and locally grown grapes distilled and then aged in oak barrels. Thanks to the long aging process, this cognac has a particularly complex taste and has won a number of awards.

Kyrgyz Konyagy’s mission is to transform sweet, ripe grapes into cognacs characterised by subtle, complex fl avours. New entries to Kyrgyz Konyagy’s product portfolio include cognacs fl avoured with cedar, coffee, cherries and chocolate, as well as Arashan, a unique balsam-based alcoholic beverage made from balsam berries, pure Kyrgyz mountain honey and more than 20 naturally grown medicinal plants.

‘Cognac of the Year’ prize and many other awards

All Kyrgyz Konyagy’s cognacs, brandies and other beverages are produced by skilled professionals who ensure the highest international quality standards. Kyrgyz Konyagy operates a modern production line and uses state-of-the-art automatic Italian equipment to bottle and label its products, handling around 3,000 bottles per hour.

The company’s products have won a number of awards in international tastings, including medals for Kyrgyz Konyagy’s KS Manas-1000, KVVK Manas and KV Kyr-gyzstan brands at the World Association of Viticulture and Wine. Kyrgyz Konyagy also received a ‘European Quality’ award in 2009, and later that year the company’s OS Bakay 30-year-old cognac received a gold medal and was named ‘Best Cognac of the Year’ at a prestigious international event held in Yalta.

Kyrgyz Konyagy will continue to focus on high quality and innovation to produce exceptional cognacs, brandies and other beverages for connoisseurs worldwide.

Kyrgyz KonyagyMurmansk st. 250/1 - Bishkek

Tel: +996 312 69 9355offi ce@cognac.kg - www.cognac.kg

THE EUROPEAN TIMES

Diverse, Unique Cultural AttractionsWith its rugged mountain landscapes

which required herders to move their

fl ocks throughout the year, the Kyrgyz

Republic has a centuries-old nomadic

tradition that is still alive and well today.

Everything in ancient Kyrgyz culture is

related to nomadic life, from clothing and

food to the transportable yurt and a strong

oral culture that includes legends passed

down for hundreds of years.

‘Manas’, an epic poem preserved by generations of Kyrgyz storytellers, is still presented orally to audiences throughout the country. It contains more than a million lines and is 20 times as long as the ‘Odyssey’ and ‘Iliad’ combined. Focussing on the exploits of a Kyrgyz hero, Manas, it recounts the creation of the Kyrgyz homeland beginning in around the 10th century and illustrates the Kyrgyz people’s reverence for their cultural traditions.

Traditional camping in a yurt

While most Kyrgyz people live in modern homes, they cherish their nomadic heritage. In summer, many Kyrgyz people still spend time in traditional yurts with their herds of animals, and several yurt camps cater to tourists in search of an authentic camping experience. A traditional yurt camp, or jailoo, is a collection of yurts – known as boz ui in the Kyrgyz Republic – around a high-altitude summer pasture. Boz ui are entirely handmade and

Traditional yurt

© Elisa Locci-Dreamstime.com

Kyrgyz families can demonstrate to visitors the process of erecting and taking down one of these stable but portable dwellings. Traditional games often played at a yurt camp include kok boru, a rugged kind of polo.

The Kyrgyz handicraft tradition also still flourishes. Kyrgyz women create felt slippers, bags, decorative panels and traditional hats as well as colourful carpets, called shyrdaks, in a variety of sizes and traditional patterns. Naryn oblast is a well-known centre for shyrdak-makers.

Music is also central to Kyrgyz culture, and no festival is complete without concerts and dancing. Tradi-

tional Kyrgyz instruments include the komuz, a three-stringed pear-shaped instrument usually made of apricot wood. The choor, a wind instrument; a clay ocarina, the chopo choor; and the ooz komuz (a mouth harp), are also very popular.

The Kyrgyz mountains, which made travelling through the country difficult in the past, have also resulted in great cultural diversity in one small country as different tribes developed their own cultures; customs in the northern part of the country are different from those of the more agri-cultural south. Diverse, colourful and unique, Kyrgyz culture is waiting to be experienced by visitors.

Tourism & Culture

70

THE KYRGYZ REPUBLICTHE EUROPEAN TIMES THE EUROPEAN TIMES

Top 10 for VisitorsBishkekThe Kyrgyz capital is a relaxed city with wide boulevards, parks and views of the snow-capped Ala-Too mountain range. Bishkek’s State His-torical Museum showcases Kyrgyz history and culture. The Ala-Archa Canyon 40 km south of Bishkek has many hiking trails as well as the Upper Ala-Archa Mountain Ski Base, which offers skiing on glaciers even in summer.

Issyk-Kul lake

Issyk-Kul lake, the world’s second-largest alpine lake, is 170 km long and at an altitude of 1,600 m. The area is known for its pure air, spas, beaches, hiking trails into the mountains, natural hot springs and varied wildlife. Karakol, at the eastern end of the lake, is famous for its apple orchards and Sunday market.

Bokonbaevo eagle-hunting

Hunting with eagles is an ancient Kyrgyz tradition that is in danger of dying out. The small town of Bokon-baevo on Issyk-Kul lake’s southern shore is one of the best places to see this in action.

Burana Tower

This 10th century tower near Tokmok is a minaret and all that remains of the Karakhanid city of Balasagun.

Kochkor

This small market town is a popular base for trips to lovely Song-Kol Llake

Osh Market

© Pixelite-Dreamstime.com

as well as for overnight trips to the jailoo (alpine meadows) of Sarala-Saz and Kol Ukok lake.

Arslanbob walnut forest

The walnut forests surrounding the ethnic Uzbek village of Arslanbob in Jalal-Abad province are among the largest in the world. The area is ideal for summer hiking and winter skiing.

Song-Kol lake

Although much smaller than Issyk-Kul lake, this alpine lake is widely regarded as the country’s most beautiful. Tours on horseback and a stay in a yurt camp are popular activities here.

Osh and its market

The ancient trade centre of Osh is home to one of Central Asia’s biggest markets. The road from Bishkek to

Osh includes two passes over 3,000 m, the wide Suusamyr Valley, the immense Toktogul reservoir, the Naryn River gorge and the verdant Ferghana Valley with its famed rock carvings.

Tash Rabat caravanserai

Half-buried on a hillside at 3,500 m, this former Silk Road caravanserai was built in the 15th century on the site of what may have been a Nestorian Christian monastery. It is a good starting point for a number of hikes.

Central Tian Shan

Along the Kyrgyz Republic’s borders with China and south-eastern Kazakhstan, the Central Tian Shan has dozens of peaks over 5,000 m, including the 7,439-m Pik Pobedy (Victory Peak), and is Central Asia’s premier territory for serious trekking and mountaineering.

THE EUROPEAN TIMES

70

EVI-Autocenter

Dynamic Auto Enterprise Offers Jeep Tours of Spectacular SitesEVI-Autocenter demonstrates the potential of Kyrgyzstan’s private sector. Established in 1995 as an automotive enterprise, EVI-Auto-center launched a Volkswagen dealership and has worked closely with Volkswagen’s technical experts over the years to maintain the high standards for which the German brand is known worldwide. At the moment EVI-Autocenter is the offi cial provider of BOSCH technical services in Kyrgyzstan.

Committed to supporting Kyrgyzstan’s tourism development

Today, one of the company’s priorities is the tourism sector and car-rental services that often go in close association.Vladimir Kim, Director, explains “We focus on increas-ing our collaboration with other businesses in the tourism sector, such as travel agencies, in order to further develop Kyrgyzstan’s tourism industry as a whole.”

This year EVI-Autocenter began to offer guided jeep tours, taking visitors to stops on the Silk Road and into beautiful mountain areas. Kyrgyzstan is a very beautiful country with a lot of things to be seen; incredible mountains with unique fl ora and fauna, scenic rivers, unique nut forests and waterfalls.

Kyrgyzstan is famous not only for the natural beauty, but also for its rich cultural and historical heritage. “From our side we do our best to help our guests come as close as possible to the nature, feel the spirit and freedom of the mountain winds and at the same time spend a great time. To fulfi l all this,

we provide our guests with a reliable transport and support of experienced mechanics, guides and cooks.

Our motto is: Extreme should be comfortable,” Vladimir Kim points out.

In winter, unique ski resorts please both beginners and expe-rienced skiers alike. From smooth and easy slopes to exciting trails for free-style skiing, there is something for everyone. Advanced skiers can even take advantage of helicopter services to reach pristine snow that no one has yet skied.

Vladimir Kim says, “We are working on establishing con-nections with major travel agencies to spread the word about our tours and the beauty of our country. We are always ready for cooperation and gladly invite the travel agencies from Europe and tour-leaders for mutual activity in the organisa-tion of jeep tours and tours to Kyrgyz ski resorts.”

The company’s website gives visitors information about tour options and showcases Kyrgyzstan’s tourism appeal. He concludes, “The suffi x ‘stan’ in a country’s name quite often creates a feeling of unease among Westerners, but people here in Kyrgyzstan are very friendly, open and hospitable. So to potential visitors in Europe, we say: come to Kyrgyzstan and discover the country for yourselves!”

Lva Tolstogo st. 19 - BishkekTel: +996 772 513 810

auto@evi.kgwww.evi.kg

71

THE EUROPEAN TIMESTHE EUROPEAN TIMES

Top 10 for VisitorsBishkekThe Kyrgyz capital is a relaxed city with wide boulevards, parks and views of the snow-capped Ala-Too mountain range. Bishkek’s State His-torical Museum showcases Kyrgyz history and culture. The Ala-Archa Canyon 40 km south of Bishkek has many hiking trails as well as the Upper Ala-Archa Mountain Ski Base, which offers skiing on glaciers even in summer.

Issyk-Kul lake

Issyk-Kul lake, the world’s second-largest alpine lake, is 170 km long and at an altitude of 1,600 m. The area is known for its pure air, spas, beaches, hiking trails into the mountains, natural hot springs and varied wildlife. Karakol, at the eastern end of the lake, is famous for its apple orchards and Sunday market.

Bokonbaevo eagle-hunting

Hunting with eagles is an ancient Kyrgyz tradition that is in danger of dying out. The small town of Bokon-baevo on Issyk-Kul lake’s southern shore is one of the best places to see this in action.

Burana Tower

This 10th century tower near Tokmok is a minaret and all that remains of the Karakhanid city of Balasagun.

Kochkor

This small market town is a popular base for trips to lovely Song-Kol Llake

Osh Market

© Pixelite-Dreamstime.com

as well as for overnight trips to the jailoo (alpine meadows) of Sarala-Saz and Kol Ukok lake.

Arslanbob walnut forest

The walnut forests surrounding the ethnic Uzbek village of Arslanbob in Jalal-Abad province are among the largest in the world. The area is ideal for summer hiking and winter skiing.

Song-Kol lake

Although much smaller than Issyk-Kul lake, this alpine lake is widely regarded as the country’s most beautiful. Tours on horseback and a stay in a yurt camp are popular activities here.

Osh and its market

The ancient trade centre of Osh is home to one of Central Asia’s biggest markets. The road from Bishkek to

Osh includes two passes over 3,000 m, the wide Suusamyr Valley, the immense Toktogul reservoir, the Naryn River gorge and the verdant Ferghana Valley with its famed rock carvings.

Tash Rabat caravanserai

Half-buried on a hillside at 3,500 m, this former Silk Road caravanserai was built in the 15th century on the site of what may have been a Nestorian Christian monastery. It is a good starting point for a number of hikes.

Central Tian Shan

Along the Kyrgyz Republic’s borders with China and south-eastern Kazakhstan, the Central Tian Shan has dozens of peaks over 5,000 m, including the 7,439-m Pik Pobedy (Victory Peak), and is Central Asia’s premier territory for serious trekking and mountaineering.

Tourism & Culture

THE EUROPEAN TIMES

EVI-Autocenter

Dynamic Auto Enterprise Offers Jeep Tours of Spectacular SitesEVI-Autocenter demonstrates the potential of Kyrgyzstan’s private sector. Established in 1995 as an automotive enterprise, EVI-Auto-center launched a Volkswagen dealership and has worked closely with Volkswagen’s technical experts over the years to maintain the high standards for which the German brand is known worldwide. At the moment EVI-Autocenter is the offi cial provider of BOSCH technical services in Kyrgyzstan.

Committed to supporting Kyrgyzstan’s tourism development

Today, one of the company’s priorities is the tourism sector and car-rental services that often go in close association.Vladimir Kim, Director, explains “We focus on increas-ing our collaboration with other businesses in the tourism sector, such as travel agencies, in order to further develop Kyrgyzstan’s tourism industry as a whole.”

This year EVI-Autocenter began to offer guided jeep tours, taking visitors to stops on the Silk Road and into beautiful mountain areas. Kyrgyzstan is a very beautiful country with a lot of things to be seen; incredible mountains with unique fl ora and fauna, scenic rivers, unique nut forests and waterfalls.

Kyrgyzstan is famous not only for the natural beauty, but also for its rich cultural and historical heritage. “From our side we do our best to help our guests come as close as possible to the nature, feel the spirit and freedom of the mountain winds and at the same time spend a great time. To fulfi l all this,

we provide our guests with a reliable transport and support of experienced mechanics, guides and cooks.

Our motto is: Extreme should be comfortable,” Vladimir Kim points out.

In winter, unique ski resorts please both beginners and expe-rienced skiers alike. From smooth and easy slopes to exciting trails for free-style skiing, there is something for everyone. Advanced skiers can even take advantage of helicopter services to reach pristine snow that no one has yet skied.

Vladimir Kim says, “We are working on establishing con-nections with major travel agencies to spread the word about our tours and the beauty of our country. We are always ready for cooperation and gladly invite the travel agencies from Europe and tour-leaders for mutual activity in the organisa-tion of jeep tours and tours to Kyrgyz ski resorts.”

The company’s website gives visitors information about tour options and showcases Kyrgyzstan’s tourism appeal. He concludes, “The suffi x ‘stan’ in a country’s name quite often creates a feeling of unease among Westerners, but people here in Kyrgyzstan are very friendly, open and hospitable. So to potential visitors in Europe, we say: come to Kyrgyzstan and discover the country for yourselves!”

Lva Tolstogo st. 19 - BishkekTel: +996 772 513 810

auto@evi.kgwww.evi.kg

So much to discover!