BELT AND ROAD INITIATIVE

Ministry of Economics

Kyrgyz Republic

Murzaliev Hanchoro Amanturovich

Head of Investment Policy Department

Ministry of Economy of the Kyrgyz Republic

COLLABORATION BACKGROUND

▪ ВвсмвAt the end of 2013, President Xi Jinping put forward

the initiative to jointly build the “Silk Road Economic

Belt” and the “21st Century Sea Silk Road”

(abbreviated as “One Belt - One Road”)

BELT AND ROAD INITIATIVE

According to the concept, the BRI is aimed at

improving existing and creating new trade routes, transport

and economic corridors connecting more than 80 countries

of Central Asia, Europe and Africa and will contribute to

the development of trade relations between them and

China .

At the end of March 2019, the PRC Government has

already signed 173 cooperation documents with 125

countries and 29 international organizations.

BRI

▪ political coordination;

▪ interconnection of infrastructure;

▪ trade liberalization;

▪ free movement of capital;

▪ strengthening mutual understanding between peoples.

The BRI proposed new models of cooperation and five

measures necessary for this:

BRI

o Shanghai Cooperation Organization (SCO);

o China-ASEAN (10 + 1 format);

o Asia-Pacific Economic Cooperation (APEC);

o Forum "Asia - Europe" (ASEM);

o Asian Cooperation Dialogue (ACD);

o Conference on Interaction and Confidence-Building Measures in Asia

(CICA);

o Sino-Arab Cooperation Forum, Dialog China - Gulf Cooperation

Council for Arab States (China-GCC);

o Greater Mekong Subregion Economic Cooperation (GMS);

o Central Asian Regional Economic Cooperation (CAREC).

As an important factor for enhanced cooperation in the

region called interaction such cooperative mechanisms for:

FINANCING

Asian Infrastructure Investment Bank (AIIB)

In order to finance projects of the BRI, two new financial

institutions were created in China in 2014:

Silk Road Foundation

NEW OPPORTUNITIES

Creation of high-tech logistics centersand the development of joint electroniccommerce.

Affordable and long-term financial resources

Implementation of infrastructure and energy projects, such

as the construction of a gas pipeline, new lines of railways

and roads, fiber optic transmission lines (FOCL), etc.

Loans, grants and investments

INVESTMENT COOPERATION KR-PRC

The main areas of China's investment in Kyrgyzstan

2018 World Investment in Kyrgyzstan

$ 6.936 billion

Direct investment of $ 851.7 million.

Portfolio investment $ 2.44 million

Other investments $ 6.029 billion.

Grants, technical assistance $

55.146 millionFDI from China in 2018 totaled $ 380.09 million

and increased compared to 2017 by 11.6%

Mining (24,1%)

The most attractive industries for investors from China

Manufacturing industry

(45,6%)

Professional, scientific and technical

activities (30,2%)

CONTINUATIONChina is the largest investor in the Kyrgyz economy: in 2018, the share ofChina amounted to 39.7% of the total volume of FDI received and amountedto $ 338.092 million. According to the NSC of the Kyrgyz Republic, thevolume of accumulated Chinese FDI in the Kyrgyz economy in 2013-2018.amounted to $ 1.467 billion.

Indicators2013 г. 2014 г. 2015 г. 2016 г. 2017 г. 2018 г.

2 q.

2019г.

FDI total by

country 964,5 727,1 1573,2 813,9 616,7 851,7 272,99

China 468,3 221,6 474,4 301,3 303,0 338,1 171,7

GRANTS FOR TECHNICAL COOPERATION WITH CHINA (2015 - 2019)

The total amount of funds allocated through bilateral grant and technical and

economic assistance since 2015 (taking into account the new signed agreements)

is 2 billion 200 million Chinese yuan - (about 320 million US dollars) for the

development of sectors such as:

healthcare;

transport and infrastructure (development of the road network in Bishkek,

restoration of the road surface of highways in Bishkek);

agriculture (reconstruction of the irrigation system of the Kyrgyz Republic);;

provision of logistical assistance;

support for the country's budget.

LOANSKyrgyzstan borrows funds from the Chinese Eximbank for the implementation of major infrastructure projects in the energy sector and road construction

- $ 389 million for the construction of the Datka-Kemin power transmission line

- $ 208 million for the modernization of power lines in southern Kyrgyzstan

For rehabilitation and road construction

In order to get out of the Central Asian energy ring and gain energy

independence

- $ 200 million for rehabilitation of the Bishkek-Naryn-Torugart road

- $ 100.6 million for rehabilitation of the Osh-Sarytash-Irkeshtam road

- $ 585.3 million for the construction of the North-South highway

- $ 129.8 million for the rehabilitation of the Osh-Batken-Isfana road and the

Bishkek-Balykchy road

On the modernization of the THP in Bishkek

- 386 million dollars

Agreement

SIGNED AGREEMENTS

China is one of the leading economic partners ofKyrgyzstan. As a result of the summitnegotiations in 2019, preliminary agreementswere reached on 24 projects for a total amount ofabout $ 7 billion.

CONTINUATION

During the visit, the main document was signed: the Joint Declaration of

the PRC and the Kyrgyz Republic on further deepening the comprehensive

strategic partnership, and a number of bilateral cooperation documents,

including protocols on the export of dairy products, honey, sweet cherries

and wheat flour from Kyrgyzstan to China, to promote the implementation

of joint bilateral and multilateral projects in the trade and economic sphere,

including projects for the construction of roads and railways, fiber-optic

communication lines, projects in the field of electricity ergetiki, mining,

infrastructure projects on development of information and digital

technologies, etc.

Investment project INDUSTRIAL-TRADE-LOGISTICS COMPLEX IN AT-

BASHIN DISTRICT OF NARYN REGION

Project cost: $ 280.0 million

Project implementation period: 10 years

The whole Naryn region is the territory of the FEZ “Naryn”

The total area of 45.2 thousand km2 200 hectares allocated land in At-Bashinsky

district

CONTINUATION

Building up the transit and transport potential of the

country;1

Facilitating international trade and the development of

related services;2

Impulse to change the structure of the local

economy;изменения структуры местной экономики;33

44

5

The construction of TLC

will have the following

potential benefits:

Development of trade relations with China

Prospects for the opening of small meat and potato

processing plants near TLC;

INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC

▪ Volume of investments: At the first stage, 130 million US dollars.

▪ The total amount of 1 billion US dollars

▪ The total land area was 560 ha

For reference: initial planning should ensure the opening of at

least 15 enterprises. Each investment package must be at least 2

million US dollars.

INVESTMENT PROJECT CONSTRUCTION AND OPERATION OF THE TURKMENISTAN-KYRGYZSTAN-CHINA GAS PIPELINE

The total cost of the gas pipeline construction is $ 1.2 billion. Kyrgyzstan will

receive about $ 2.15 billion in taxes in the form of taxes for 30 years of its

operation.

The length of the gas pipeline across Kyrgyzstan will be 215 km, the throughput

capacity is 30 billion cubic meters of gas per year.

The deadline for the start of the construction of the linear part of the gas pipeline

in 2019 and the end in 2022.

INVESTMENT PROJECT CONSTRUCTION OF THE CHINA-KYRGYZSTAN-UZBEKISTAN RAILWAY LINE

Project cost: 5 - 6

billion US dollars

Duration of the project: 49 years

Strengthening the capacity of national policies to jointly promote the BRI

KYRGYZSTAN CONTRIBUTES TO THE CREATION OF THE SILK ROAD ECONOMIC BELT

Since 2018, the China – Kyrgyzstan – Uzbekistan highway has been continuously engaged in design and

reconstruction for direct international transport, an example is the construction of the North-South

highway and the rehabilitation of the Osh-Sarytash-Irkeshtam road

Intensification of negotiations on the construction of the China-Kyrgyzstan-Uzbekistan railway

Cooperation in the field of construction of energy facilities (construction of the Kyrgyzstan-China-

Turkmenistan gas pipeline)

Achieved in the construction of cross-border fiber-optic cable information channels between China and

Kyrgyzstan

The development of the transport and logistics infrastructure and the organization of a system for

ensuring cargo flows along the international corridor that connects Europe and Asia, the project

"Construction of the Industrial, Trade and Logistics Center" (ITLK) in the At-Bashinsky district of the

Naryn region are constantly increasing.

Cooperation in the field of study and education, exchanges and training of specialists.

THANK YOU FOR YOUR ATTENTION

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