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How PPP could benefit both government and business

December 4, 2019

Consolidation of public and private resources is a sure step towards economic development, said Deputy Prime Minister of the Kyrgyz Republic Zamirbek Askarov at the roundtable "Public-private partnership and business: cooperation or rivalry?" on December 3.

The event was held by the Ministry of Economy of the Kyrgyz Republic, the Public-Private Partnership Center under the Economy Ministry in cooperation with the Training Center of the Finance Ministry in partnership with the JIA business association, Emark Group of Construction Companies and Burana Grand LLC.

“The infrastructure of social facilities and office buildings leaves much to be desired. Funds allocated from the state budget for the maintenance of such facilities are not enough. We set a goal to rationally use state assets in the framework of public-private partnership. We understand that many social issues can be resolved only with PPP. With the development of the private sector, the issue of providing quality and necessary services to citizens will be resolved faster,” he said.

A tripartite balance between the state, business and consumers should be observed in PPP projects, Askarov said adding that this year the parliament adopted a new version of the law on public-private partnership, which will facilitate many procedures and expand the capabilities of all parties.

“A PPP center has been created under the Economy Ministry. We must show that being a partner with the state is beneficial. Business should trust us. We are ready to continue to work to improve the business environment, ” Askarov said.

According to Director of the PPP Center Daniyar Abdyldaev, 23 PPP projects have been developed so far, including six projects in the field of transport, five in healthcare, five in education, and four in tourism, as well as project in customs, logistics, culture and sports.

Currently, three departments are working on the basis of a public-private partnership system. A project has been launched to provide hemodialysis services in the cities of Osh, Bishkek and Jalal-Abad. The Kyzyl Kyrgyzstan cinema will be rebuilt. A project on electronic ticketing in public transport will be launched in Bishkek.

About PPP Law

On July 22, 2019, the new Law of the Kyrgyz Republic “On Public-Private Partnership” was adopted. The law provides for the right of private companies to initiate PPP projects. In many countries, from 25% to 50% of PPP projects were initiated by private companies. In Kyrgyzstan, this practice is not developed for several reasons: some private companies are not aware of this opportunity, and others have many questions and are afraid to cooperate with the state. The state is also reluctant to cooperate with business due to the complexity and length of the procedures for developing projects and holding a tender.