A large-scale implementation of projects within the framework of public-private partnership (PPP) will start in Kyrgyzstan in 2020. The Prime Minister Mukhammedkaly Abylgaziev stated at a meeting of the Council for Development of Public-Private Partnership.
According to him, almost all infrastructure facilities are currently funded by the state. Due to the lack of budget funds, construction of new facilities and repair of the old ones are practically not carried out. The situation is corrected by work carried out at the expense of the external borrowings.
«But we can’t wait for external help all the time. We need to take a course for reducing the borrowings. The use of business assets could be an effective measure to ensure the country’s economic growth. World practice has shown that PPPs have helped many countries solve their infrastructure problems,» said Mukhammedkaly Abylgaziev.
The Prime Minister recalled that a new version of the law on PPP was adopted this year, a PPP center was created under the Ministry of Economy. Programs for the development of public-private partnerships until 2021 are being implemented and a Fund for financing the preparation of PPP projects is functioning, which has been allocated $ 4 million for drawing up a feasibility study and tender documentation. A decision was made to launch a strategic project for modernization and development of Manas International Airport OJSC on the basis of PPP.
«All these measures confirm that we seriously intend to expand our PPP projects. We must show that being a partner with the state is beneficial. Up to date, a portfolio of 23 projects for more than $ 500 million has been formed through public-private partnership. It is important that over the past year we have managed to launch the process in order the PPP mechanism can start working,» the Prime Minister stated.
