belt and road initiative · 2019. 9. 30. · investment project kyrgyz-chinese industrial park on...
TRANSCRIPT
![Page 1: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/1.jpg)
BELT AND ROAD INITIATIVE
Ministry of Economics
Kyrgyz Republic
Murzaliev Hanchoro Amanturovich
Head of Investment Policy Department
Ministry of Economy of the Kyrgyz Republic
![Page 2: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/2.jpg)
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”)
![Page 3: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/3.jpg)
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.
![Page 4: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/4.jpg)
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:
![Page 5: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/5.jpg)
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:
![Page 6: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/6.jpg)
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
![Page 7: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/7.jpg)
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.
![Page 8: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/8.jpg)
Loans, grants and investments
![Page 9: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/9.jpg)
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%)
![Page 10: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/10.jpg)
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
![Page 11: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/11.jpg)
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.
![Page 12: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/12.jpg)
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
![Page 13: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/13.jpg)
Agreement
![Page 14: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/14.jpg)
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.
![Page 15: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/15.jpg)
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.
![Page 16: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/16.jpg)
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
![Page 17: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/17.jpg)
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;
![Page 18: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/18.jpg)
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.
![Page 19: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/19.jpg)
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.
![Page 20: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/20.jpg)
INVESTMENT PROJECT CONSTRUCTION OF THE CHINA-KYRGYZSTAN-UZBEKISTAN RAILWAY LINE
Project cost: 5 - 6
billion US dollars
Duration of the project: 49 years
![Page 21: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/21.jpg)
Strengthening the capacity of national policies to jointly promote the BRI
![Page 22: BELT AND ROAD INITIATIVE · 2019. 9. 30. · INVESTMENT PROJECT KYRGYZ-CHINESE INDUSTRIAL PARK ON THE BASIS OF THE AGRARIAN INDUSTRIAL PARK OF ISKRA ASIA OJSC Volume of investments:](https://reader033.vdocuments.us/reader033/viewer/2022060901/609ea0cdd163c471fd54014d/html5/thumbnails/22.jpg)
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.