Local companies presented their investment projects in agribusiness, mining, construction, logistics and trade, finance and tourism to potential investors at the Second Issyk-Kul 2015 Economic Forum. The event was organized by the Investment Promotion Agency under the Economy Ministry of Kyrgyzstan on August 26 at the Ruch Ordo Cultural Center in Cholpon-Ata, Issyk-Kul province. The forum was attended by over 400 representatives of government agencies and business community from China, Russia, Belarus, Turkey, India, and the UK.

At the first Issyk-Kul forum last year, Chinese President Xi Jinping and Minister of Economy of Kyrgyzstan suggested holding this forum at Lake Issyk-Kul annually to implement China-proposed Silk Road Economic Belt concept, which focuses on bringing together China, Central Asia, Russia and Europe (the Baltic), linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and the Indian Ocean.

Director of the Investment Promotion Agency Almaz Sazbakov told about the investment climate in Kyrgyzstan, the first CIS country to join the WTO, which suggests a liberal trade regime in the country. Kyrgyzstan also has signed more than 30 agreements on investment protection and more than 20 agreements on the protection of the double taxation risks.

In Kyrgyzstan, there are equal conditions for foreign and local investors. Kyrgyz law provides freedom of movement of funds. There are five free economic zones which offer exemption from all taxes and simplified regime for registration of business entities.

Kyrgyz Deputy Economy Minister Daniyar Imanaliyev spoke about the positive aspects of joining the Eurasian Economic Union including abolishing of customs clearance and cancellation of formalities, duties and customs controls at the internal EEU borders. The freedom of transit will reduce the costs of foreign trade participants, and investors will have access to the market of Kyrgyzstan and the other EEU countries, he said.

Cooperating with China

The forum was attended by representatives of 46 companies from China's Shanxi Province engaged in agriculture, heavy industry and energy sector.

Kyrgyzstan welcomes the idea of the Silk Road Economic Belt, Kyrgyz Economy Minister Oleg Pankratov said. It will significantly increase the economic development and prosperity of the entire region. Kyrgyzstan is taking measures to attract investments to the country by reducing administrative barriers. There is a liberal tax system in the country: the sales tax is 10% and VAT is 12%. Opening a company takes two procedures and three days. Kyrgyzstan’s accession in the EEU creates favorable conditions for the free transit of goods, which will help reduce costs for businesses.

Kyrgyzstan and China are drafting a 10-year cooperation program, Head of the Foreign Policy Department of the Presidential Administration of Kyrgyzstan, Sapar Isakov, said. During the forthcoming visit of Kyrgyz President Atambayev to China, an agreement to allocate 350 million yuans to promote a major project in Kyrgyzstan will be signed. In addition, the parties will discuss cross-border cooperation. On September 1, Atambayev will depart to Beijing, where he will take part in commemorative events dedicated to the 70th anniversary of Chinese People's War of Resistance against Japanese Aggression and the end of World War II.

Creation of the SCO Fund and SCO Development Bank will be a financial guarantee for the realization of joint projects of Kyrgyzstan and China, a Chinese Embassy representative said. Several large joint projects are being successfully implemented in Kyrgyzstan including the construction of alternative North-South road, Datka-Kemin power transmission line, and rehabilitation of the Bishkek heat and power plant.

Agreements signed

Ten agreements have been signed between Chinese and Kyrgyz companies including on creation of a Kyrgyz-Chinese industrial park in Kyrgyzstan. Memorandums of understanding and cooperation were signed between China National Aero-technology International Engineering Corp. and the Manas International Airport, and between Chen Fen Commercial and Industrial Company from Xian and the Cholpon-Ata City Administration.

According to the agreement signed between Chinese Huahe International and Kyrgyz Elite Holding, three big investment projects will be implemented in the coming years. A New Bishkek City mall will be built on 200 hectares in the south of Bishkek. Under the second project, an elite resort will be constructed in the village of Kara-Oi at Lake Issyk-Kul. The third project will construct a shopping and entertainment center in downtown Bishkek.

By Lidia SAVINA, IBC