The President of Kyrgyzstan in his next interview answered questions about the activities of cryptocurrency mining farms in Kyrgyzstan. Earlier, journalists found out that mining farms are operating in Kyrgyzstan even when there is a shortage of electricity.
Sadyr Japarov said that cryptocurrency mining would be carried out not at a reduced rate, but at 5.04 soms per 1 kilowatt — this is the highest rate for today.
We allowed construction of such a farm in Kemin district because the capacity of Kemin substation allows it.
Sadyr Japarov
He also noted that in summer electricity is generated in sufficient volume and there is even a surplus that cannot be sold to anyone. Therefore, cryptocurrency mining is allowed in those areas where capacity allows it so that incomes come to the energy sector. If there is a shortage during the winter period, the work of such farms will be suspended. They can work the remaining nine months.
«The energy sector generates millions in tax revenues. For example, the cryptocurrency mining farm in Kemin transferred 480 million soms to power industry for six months and paid 225 million soms in taxes. All this money is directed to the needs of the state and the population. The company in Kemin has been registered with the local tax authority and will continue to pay taxes to the local budget and contribute to the development of the region,» Sadyr Japarov said.
The head of state also noted that the shortage of electricity is felt in the winter. The required volume is imported from other states for 3 soms. When selling electricity to mining farms at a rate of 5.04 soms, 2.04 soms of net profit remains. This is further compounded by tax revenues. The state derives only benefit, not harm.
«In the future, we will abandon import of electricity from abroad in winter. The HPPs that are currently under construction will be put into operation until the end of this year. In the future, we will become an electricity exporting country. Starting next year, we will face with the task of export of electricity to Pakistan and Afghanistan through CASA-1000 line. Kyrgyzstan previously assumed such an obligation to the World Bank. In this regard, we are now increasing the pace of construction of hydroelectric power plants,» Sadyr Japarov said.
He also commented on the construction of a cryptocurrency mining farm at Kambarata HPP-2. The President recalled that the HPP was put into operation in 2010. Since then, it has produced 120 megawatts of electricity. Of these, the republic can receive only 90, since the capacity of the lines is designed for this volume. During 13 years of operation of the HPP, the remainder in the form of 30 megawatts of electricity was not used.
As a result, the country lost 6,816 billion kilowatt-hours of electricity. In monetary terms, this is 3,275 billion soms.
«Former leaders can be held accountable for such connivance, for not paying attention to the loss of 30 megawatts for 13 years. Now we have allowed to install a mining farm up to 30 megawatts in this place (inside Kambarata HPP). Only the construction of this farm will require about $ 20 million. Investor will build it. As soon as the mining farm starts working, there will be no such losses. The money earned will go to the power sector or, to be more precise, to ordinary people. Every tyiyn, every kilowatt will be under the control of power engineers. Everything will be automated and under our control. We, before starting any business, measure not seven, but seventy times, and then we take decisive steps. We will immediately abandon cases that are detrimental to the state,» he commented.
«In this regard, I would like to appeal to those who are looking for only the negative sides in everything. Whatever the topic, it is necessary to study it thoroughly and only then publish the material. There will be no point in trying to mislead the people. The people are not the same now as they were 30 years ago. They are educated, whether it is an economic or a political issue,» Sadyr Japarov concluded.
