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Public private partnership center to be created in Kyrgyzstan

The Prime Minister of Kyrgyzstan supported a proposal to establish a public private partnership center, which would engage in implementation of effective PPP tools in the country. Mukhammedkaly Abylgaziev said this at a meeting of the Council on Development of Public Private Partnership.

During the meeting, the head of the Cabinet once again criticized the work of ministries and departments on development of public private partnership system. PPP was legally adopted in 2012, but as of today only one project is at a launch stage. The government revised the law to make it more attractive for investors. The document has already been adopted by the Parliament in the first reading.

There is a very weak level of promotion of projects through our ministries and departments. I think that the leaders of state bodies and local self-government bodies, unfortunately, do not understand the essence and importance of PPP very well. It is necessary to actively promote and increase the number of potential PPP projects in the country.

Mukhammedkaly Abylgaziev

A proposal was made to establish a public-private partnership center to accelerate the development of PPP and provide support to state bodies for the effective use of long-term interaction tools between the state and business. According to an independent expert Gulnara Kalikova, research shows that high spending, high debts and staff overage are typical for state-owned business entities.

«They have weak market motivation and low labor productivity. PPP is the only available tool for attracting private investment in the public sector and improving management of state property. With the help of PPP, it is possible to improve the quality of state and municipal services,» Gulnara Kalikova stressed.

The head of government agreed with the proposal and instructed the state bodies to negotiate with international financial institutions over development of feasibility studies of specific projects within the framework of PPP for further study and effective implementation.