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Green Economy and Business Support

Green Economy and Business Support

On February 11, the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic hosted a meeting with Bermet Kanimetova, Executive Director of the Association of Legal Entities "Green Alliance KG", and Cholpon Asakeeva, an expert from the Secretariat.

The discussion focused on the 2025 plans of "Zelyony Alliance" and the Investment Council, key challenges in sustainable development and the green economy, as well as mechanisms for preferential lending to small and medium-sized businesses (SMEs).

Special attention was given to support mechanisms for businesses implementing environmentally sustainable projects. In the face of global climate change and economic transformation, it is crucial to develop effective financial instruments that help businesses adapt to new realities and introduce innovative solutions.

The Secretariat of the Investment Council and "Zelyony Alliance KG" agreed to strengthen cooperation in attracting green investments, developing renewable energy, supporting eco-entrepreneurship, and promoting sustainable development principles in the Kyrgyz Republic.

Work in these areas will continue, with upcoming joint initiatives aimed at advancing the green economy and supporting SMEs.

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Kyrgyz-Chinese Cooperation: Outcomes of the State Visit and Investment Prospects

Kyrgyz-Chinese Cooperation: Outcomes of the State Visit and Investment Prospects

From February 4 to 7, 2025, President of the Kyrgyz Republic, Sadyr Japarov, paid a state visit to the People's Republic of China, reaffirming the high level of strategic partnership between the two nations. During meetings with Chinese President Xi Jinping and Chinese Premier Li Qiang, key issues related to trade, economic cooperation, investment, and infrastructure development were discussed.

On the Ala-Too 24 state television channel, during the Ala-Too Live program, Uluk Kydyrbaev, Head of the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, spoke live to highlight the visit’s significance and its economic impact.

Uluk Kydyrbaev emphasized that Kyrgyz-Chinese cooperation has entered a new phase, marked by tangible economic transformation. Previously, bilateral discussions were primarily strategic and political, but today, we see real investment and infrastructure projects that are either being implemented or are in the final stages of approval.

Key Projects Transforming the Kyrgyz Economy

"China – Kyrgyz Republic – Uzbekistan" Railway

A project that had been in development for over 20 years has finally moved into active implementation. This railway will become a major transport corridor linking Central Asia with the Middle East and Europe, creating new logistics opportunities, expediting trade flows, and generating thousands of new jobs in the Kyrgyz Republic.

Expansion of Trade and Infrastructure

China remains the Kyrgyz Republic’s largest trading partner, with bilateral trade reaching a record $22.71 billion in 2024. Additionally, the Toruugart and Irkeshtam border checkpoints have been upgraded and now operate 24/7, significantly facilitating cross-border trade and improving business conditions.

Development of Cross-Border and E-Commerce

The "Two Countries – Two Parks" project aims to enhance cross-border trade, develop digital commerce, and expand exports of Kyrgyz goods to the Chinese market. This initiative will increase the country’s export potential and simplify access for Kyrgyz products to international markets.

Additionally, the completion of the "North-South" highway will become a key component of national transport infrastructure, connecting northern and southern regions and significantly reducing travel times.

According to Uluk Kydyrbaev, ongoing transformations in Kyrgyz-Chinese relations are already having a direct impact on the country’s development. These projects enhance economic stability, create employment opportunities, and open new prospects for businesses.

Furthermore, partnership with China provides the Kyrgyz Republic with greater integration into global economic processes, particularly within the "Belt and Road Initiative," which is shaping new transport and logistics routes across Eurasia.

The Kyrgyz Republic and China demonstrate a high level of trust and long-term cooperation. The implementation of joint projects will not only contribute to economic growth in both countries but also strengthen regional stability and facilitate Central Asia’s integration into global markets.

The full version of the interview is available here (in Russian)

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Development of Preschool Education with PPPs

Development of Preschool Education with PPPs

Preschool education is one of the key factors in human capital development and social stability. However, in the Kyrgyz Republic, this sector faces significant challenges, including a shortage of kindergarten places, inadequate infrastructure, and insufficient funding, particularly in remote areas. President Sadyr Japarov has also highlighted this issue, stating: "In 2025, the government will allocate financial resources to support preschool education for children living in mountainous and remote areas of our country, as well as for children with disabilities and those from low-income families."

Given this context, it has become essential to explore effective mechanisms for attracting private investments into the preschool education sector, including through Public-Private Partnership (PPP) models.

On February 4, an online meeting was organized by the Secretariat of the Investment Council, focusing on developing PPP models for preschool and school education. The discussion brought together representatives from the Ministry of Education and Science of the Kyrgyz Republic, IFC in the Kyrgyz Republic, the PPP Center, and experts from the Secretariat.

During the meeting, participants discussed the possibility of IFC providing technical assistance in developing sustainable financial models for kindergartens and schools. The discussion also emphasized the need to attract private investments, expand the network of preschool institutions, and establish effective cooperation mechanisms between the public and private sectors.

As a result of the discussions, IFC confirmed that it will continue reviewing the possibility of providing technical support for the development of PPP models in preschool education, considering both international experience and Kyrgyzstan's specific needs. The Ministry of Education and Science outlined its key priorities, including the necessity of establishing new kindergartens based on sustainable financial mechanisms. Meanwhile, the Secretariat of the Investment Council has launched the process of further discussions involving all stakeholders and will continue coordinating efforts to develop optimal solutions.

This work is ongoing, and the Secretariat will keep stakeholders informed about further steps in advancing PPP initiatives for preschool education.

Expanding the kindergarten network through PPP could become a vital step in addressing existing challenges, ensuring quality education and equal access for all children in the country.

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Strengthening Regional Public-Private Dialogue: Karakol

Strengthening Regional Public-Private Dialogue: Karakol

On January 29, the team of the Secretariat of the Investment Council continued its regional engagement in Issyk-Kul, a region with immense potential for the development of year-round tourism, agriculture, and the processing industry. Led by Uluk Kydyrbaev, the Secretariat’s delegation held meetings with the administration of the Plenipotentiary Representative of the President in Issyk-Kul region and representatives of the local business community.

The first half of the day was dedicated to discussions with Daniyar Arpachiev, Deputy Plenipotentiary Representative of the President in Issyk-Kul, and Askat Azarbekov, Head of the Administration. The talks focused on investment project implementation, improving conditions for entrepreneurship, and strengthening public-private partnerships (PPP). Special attention was given to enhancing the investment climate and supporting initiatives for sustainable regional development. The Secretariat also discussed its role in assisting with the region’s development strategy, particularly in refining the investment section in collaboration with the National Investment Agency (NAI) and the PPP Center.

Following this, the team met with Aibek Saparbekov, Chairman of the Karakol City Council, to discuss the city’s designation as a tourism destination and the steps required to fully leverage this status. As part of this effort, the parties agreed to organize training programs to standardize hospitality services, including hotel and restaurant standards, to enhance the region’s appeal to visitors.

In the second half of the day, the Secretariat engaged with local entrepreneurs and small and medium-sized businesses. The discussions highlighted key challenges such as access to financing, logistical barriers, and opportunities for developing export-oriented projects. Participants shared proposals to boost economic activity in the region, including a review of the effectiveness of regional development funds to ensure targeted financial support. Another key issue raised was the need to prioritize funding for preschool education facilities, as early childhood development projects often receive less attention compared to other investment priorities.

The visit to Karakol reaffirmed the region’s economic potential and the importance of fostering an enabling environment for businesses and investors. These regional visits are part of a joint initiative by the Secretariat of the Investment Council, the PPP Center, UNDP, and the European Bank for Reconstruction and Development (EBRD), aimed at supporting key projects and improving investment conditions across the country.

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