Askar Beshimov: Kumtor minefield development is litmus paper of Kyrgyzstan?s investment policy
29/03-2011 09:45, Bishkek ? 24.kg news agency , by Arstan AALYEV
?Kumtor minefield development can be called as litmus paper of current investment policy in Kyrgyzstan,? Executive Director of ?Project of Future? Fund Askar Beshimov, expert of International Business Council, said in his interview to 24.kg news agency.
-Don?t you overestimate role and significance of the project for the republic?
-Kumtor is one of the most important taxpayers and has significant influence on the State treasury. I can even say that for the State, the project is budget forming enterprise. Fulfillment of government?s socioeconomic and budget obligations directly depends on the operation of Kumtor.
-Does government understand it? According to the fact that almost every Cabinet of Ministers tries to reconsider the conditions of agreement with the investor, government does not.
-I would rather not evaluate it in this way. They sooner understand it, as it is hard to underestimate the significance of the project for the country. Thanks to Kumtor, country still has such notions as ?industry? and ?manufacturing.? Growth rates of GDP and industrial sector development were always evaluated with account of the project and without it.
According to data of National Statistical Committee of the Kyrgyz Republic, in 2010, share of Kumtor in GDP of the country totaled 10.5 percent, in overall industrial production ? 26.1 percent, export ? over 39.2 percent. These are the significant figures. For industrial sector Kumtor is the only large enterprise and standard-bearer of mining sector.
-One way or another, authorities and people close to them actively discuss the Kumtor issue. But you connect minefield development with the investment policy as a whole. Why?
-Kumtor was and still remains the only large and significant economic project in mining sector of the republic. That is why business, intending to invest into the country, pays attention first of all to the situation around it.
What can be said, monitoring the situation around Kumtor?
-Foreign investors, who are ready to implement co-projects in Kyrgyzstan, first of all pay attention to relations of government with Kumtor. In particular, how and how effectively State fulfills its obligation and legal guarantees in respect of the company. If any complications or problems arise then they have immediate effect on the investment climate in the country. And the effect is negative.
-What advice can be given to government in such situation?
-Executive and Legislative branches must fulfill their obligations, i.e. openly and honestly work with the investor. All these must be made within legal framework, not to lose credit of trust of foreign investors. International companies pay close attention to the situation around Kumtor in connection with the fact that Kyrgyzstan experiences significant socioeconomic difficulties.
Nevertheless, there is a group of people in Kyrgyzstan, which considers that the investor overreports the expenses and shares unfairly with the State and nation.
- Even if investor, developing Kumtor, overreports capital costs, neither government of Kyrgyzstan nor group of people is able to invest into the development of industrial sector.
URL: http://eng.24.kg/business/2011/03/29/17132.html
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