Kyrgyzstan Business & Economy - The Times Of Central Asia

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Kyrgyzstan and Tajikistan Move Closer to Electricity Exports to South Asia

Kyrgyzstan and Tajikistan have officially launched the 500 kV Datka-Sughd overhead power transmission line, a key component of the CASA-1000 (Central Asia-South Asia) electricity transmission project. The initiative is designed to export surplus summer electricity from the two Central Asian countries to Afghanistan and Pakistan. The 485-kilometer line, which connects the Datka substation in Kyrgyzstan with the Sughd substation in Tajikistan, was inaugurated on March 31 during Kyrgyz President Sadyr Japarov’s visit to the Tajik city of Khujand. Tajik President Emomali Rahmon also attended the ceremony. The new line enables bidirectional power flows, significantly enhancing the resilience and stability of Central Asia’s power grid. According to Kyrgyzstan’s Ministry of Energy, both Kyrgyzstan and Tajikistan have completed their respective infrastructure components of the CASA-1000 project. Project Progress and Timeline In Pakistan, construction is expected to be completed by August 2025. In Afghanistan, where work had stalled, construction has now resumed. Over 95% of the necessary materials have already been delivered to the country. Full completion of the Afghan section and the start of commercial operations are expected in 2027. The CASA-1000 project, with a total cost exceeding $1.2 billion, is financed by the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank, and other international partners. The Kyrgyz and Tajik sections alone accounted for approximately $544 million, or 45.3% of the total project budget. Once fully operational, CASA-1000 will have the capacity to transmit up to 11 billion kilowatt-hours of electricity per year. Economic and Regional Impact Tajikistan and Kyrgyzstan are expected to jointly export up to 5 billion kilowatt-hours of green electricity annually to Pakistan, roughly 5% of Pakistan’s total electricity consumption. The projected revenue from these exports is over $250 million per year for the two countries. The successful implementation of CASA-1000 not only promises economic benefits for Central Asia but also marks a significant step in regional energy cooperation, renewable energy deployment, and cross-border infrastructure integration.

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Are Innovative Industries One of the Kyrgyz Republic’s Few Opportunities to Prosper?

The emergence of AI is considered by many to be a major tectonic shift, much like the emergence of the internet in its time. It is hard to overestimate the role innovation plays in our lives, with founders all over the world trying to pioneer our way out of the next problem. At first glance, the Kyrgyz Republic’s tech sector does not represent anything particularly meaningful. The chances of the small landlocked country - the farthest from any ocean in the world, which is the most affordable mode of shipping mode - integrating into innovative global ecosystems on its own seem wholly unrealistic. However, if we look at the dynamics of development in its tech sector, the potential is there. Is there a chance that the Kyrgyz Republic can become a part of the global tech scene? [caption id="attachment_30359" align="aligncenter" width="1440"] Image: The World in Maps[/caption] According to Ashley Vance at Bloomberg, “It’s about a landlocked nation, one with very few natural resources, hoping to gen up a tech industry on the fly.” The Kyrgyz startup ecosystem is clearly in its nascent stages, meaning that you haven’t heard about the Kyrgyz Skype. Yet. The country’s position in the Global Innovation Index in 2024 is 99th, up from 106th in 2023. The Global Startup Ecosystem Index, meanwhile, has the Kyrgyz Republic lower than 100th place in its 2024 ranking, down from 99th in 2023. “The country has maintained second position in Central Asia and seventh in the Central Asia Regional Economic Cooperation Program (CAREC) business region,” according to this index. The Kyrgyz Republic’s VC ranking of 103rd in the Venture Capital & Private Equity Country Attractiveness has barely changed over the last couple of years. When compared to peer group economies, it is obvious that the Kyrgyz Republic needs significant improvements in the depth of the capital market, social environment, entrepreneurial opportunities, and economic activity. [caption id="attachment_30358" align="aligncenter" width="1796"] Image: Venture Capital & Private Equity Country Attractiveness Index 2023[/caption] In terms of the number of venture capital deals, the Kyrgyz Republic is still lagging behind its neighbors. Out of $110+ million of venture capital funding in the region in 2023, the Kyrgyz contribution was only a fraction at $1.1 million. In 2024, this increased to $1.7 million, however, with the country's first venture capital law soon to be adopted. [caption id="attachment_30357" align="aligncenter" width="826"] Image Venture Capital in Central Asia 2024[/caption] The High Technology Park of the Kyrgyz Republic, which is a special tax regime for IT companies targeting exports, is demonstrating a steady growth, with its revenue expanding from under a million in 2013, to a more impressive $130 Million in 2024. The park’s residents are mostly companies providing IT outsourcing for developed markets, but the signs of a turn towards launching their own IT products are there. A separate world-first Creative Industries Park has also been set up to support the country's creative industries, including startups. When it comes to the largest Kyrgyz startups, they are founded by Kyrgyz nationals,...

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Kyrgyzstan’s Gold Reserves Could Last a Century, Says Top Geologist

Kyrgyzstan’s largest gold mining operation, Kumtor Gold Company, has identified an additional 147 tons of gold through recent geological exploration. These reserves have now been officially added to the balance sheet of the state-run enterprise, reinforcing expert forecasts that gold extraction in the country can continue for decades to come. The announcement was made by Minister of Natural Resources Meder Mashiev during a press briefing in Bishkek. Mashiev noted that previously unexploited reserves at Kumtor, a key contributor to the national budget, were estimated at 127 tons. Following the new exploration, total reserves now stand at 261 tons. Kumtor Gold Company was nationalized in 2022 after Canadian firm Centerra Gold withdrew from the project. At the time, industry experts predicted the mine would cease operations by 2027 due to depleted reserves at the main open pit. The prospect of investing in new infrastructure at adjacent sites was deemed economically unfeasible. This view was partly supported by production data: in 2015, ore yielded about 5 grams of gold per ton; today, it yields less than one gram. Local experts, however, have described this decline as temporary. According to official figures, Kumtor produced 17.3 tons of gold in 2022, 13.5 tons in 2023, and was projected to produce 12.2 tons in 2024, numbers not seen since 2012, when output fell below 10 tons. Back then, the company cited falling global gold prices and the limited viability of high-volume production. Under the 2022 agreement with Centerra Gold, the Kyrgyz Cabinet of Ministers assumed full management of the Kumtor mine. The Canadian company also agreed to pay over $60 million for environmental protection and transferred control of a $53 million reclamation fund to the Kyrgyz side. In return, it was released from future mine reclamation obligations. In an interview with The Times of Central Asia, Rozalia Djenchuraeva, a geologist at the National Academy of Sciences, stated that with proper management, Kumtor could continue producing gold for another hundred years. “Gold is not running out. There’s still a substantial amount at Kumtor. In the 1980s and 1990s, we recalculated potential reserves in the area and identified over a thousand tons,” Djenchuraeva said. “The entire strip where Kumtor is located is gold-bearing. It stretches along the mountains beneath glaciers, and we have enough gold to last a century. The key is to avoid harming nature.” She emphasized that much of the remaining gold lies beneath glaciers, making extraction without environmental damage particularly challenging. “The high-altitude ecosystem is very sensitive to human interference,” she said. Nonetheless, Djenchuraeva believes that modern exploration and mining technologies offer a path forward. “If we proceed responsibly and with care, gold extraction can continue for many years to come,” she concluded.

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Kyrgyzstan Turns to Alternative Energy to Address Power Deficit

Expanding the use of alternative energy sources is key to overcoming Kyrgyzstan’s persistent electricity shortages, Deputy Chairman of the Cabinet of Ministers Bakyt Torobayev said during a meeting at the Ministry of Energy on March 27. Torobayev acknowledged the country’s chronic power deficit and underscored the need for investment in renewable energy development. “Increasing power generation is today’s top priority,” he stated. In response to the ongoing energy crisis, the Kyrgyz government declared a state of emergency in the energy sector from August 1, 2023, to December 31, 2026. The move was intended to accelerate emergency measures to counter the impacts of climate change, reduced water flows in the Naryn River, a major source of hydropower, rising energy demand, and limited generating capacity. Power Imports Fill the Gap Although Kyrgyzstan has the potential to generate 142 billion kilowatt-hours (kWh) annually, current production stands at just 14 billion kWh, approximately 10% of its hydropower capacity. According to Energy Minister Taalaibek Ibrayev, the country currently generates 3,450 megawatts of electricity, while demand has risen to 3,600 megawatts. In 2024, Kyrgyzstan consumed 18.3 billion kWh, an increase of 1.1 billion kWh over the previous year. Hydropower plants accounted for 12.77 billion kWh, while coal-fired thermal plants produced 1.76 billion kWh. Small private hydropower plants added 156.2 million kWh, and solar installations contributed 0.17 million kWh. To close the gap, Kyrgyzstan imported 3.63 billion kWh of electricity in 2024, an increase of 141.7 million kWh from 2023. Expanding Generation Capacity To alleviate the crisis, the government has launched several major hydropower construction projects. The Ministry of Energy announced ongoing work to install a second hydroelectric unit at the Kambarata-2 Hydropower Plant (HPP). The plant is designed for three units with a combined capacity of 360 megawatts (120 MW each). Currently, only the first unit is operational. The addition of the second unit will significantly enhance the plant’s output. Meanwhile, construction has also begun on the much larger Kambarata-1 HPP on the Naryn River. When completed, it will become Kyrgyzstan’s largest hydropower facility, with a projected capacity of 1,860 megawatts and an expected annual output of 5.6 billion kWh, enough to substantially address the country’s energy shortfall. Embracing Solar and Wind As part of its energy diversification strategy, Kyrgyzstan has also initiated solar and wind energy projects. In 2024, the country began building a 400-megawatt solar power plant and a 100-megawatt wind farm, marking significant steps toward reducing reliance on imported electricity and fossil fuels.

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Kyrgyz Startup Yessa Helping Women to Reclaim Pleasure

When Begaiym Zamirbek left her job at the Institute for War & Peace Reporting (IWPR), where everything was stable and predictable, she dove into the significantly riskier world of startups with her new venture, Yessa. That’s how her path of entrepreneurship began, which led her to Vietnam. Yessa supplies audio erotic entertainment for women, like companies including Quinn and Femtasy. Both boast a vast audience and have raised over $3 Million in investments. Quinn is based in the U.S., and its European counterpart, Femtasy, operates out of Berlin. Neither are available in languages other than English, French, and Deutsch, however. But Yessa is trying to fix that by making audio erotica for women available in other languages. My previous partner “did things in bed that I agreed to unconditionally. I didn't even know I had a choice,” Zamirbek told TCA. “I came out of that relationship traumatized and didn't realize, but after the breakup, any thought of sex made me feel disgusted. I accidentally came across an audio where the men were caring, tender and asked for my consent for literally everything. I thought that if such audios exist, then there must be such partners in reality. And I was not mistaken. I regretted that all such content was in English, and then I thought that Russian-speaking women also need such things.”Apart from her full-time job at IWPR, Zamirbek is a seasoned podcast host. Her podcast, Second Shift, which she has been co-hosting for five years, was the first feminist podcast in Kyrgyzstan and quickly became one of the most popular ones. That experience set her on the path toward the launch of her audio company. During the COVID-19 pandemic, Zamirbek spent a lot of time at home listening to erotica in English, which piqued her interest in exploring her desires and going on dates. In 2024, inspired by TikTok, where more and more women were openly discussing the intimate details of their relationships, she began implementing her startup idea. After seeking advice from a venture capital professional and completing the Y Combinator’s Startup School, Zamirbek started looking for a tech co-founder. “We met at the March 8 march for women's rights in Bishkek. Anna Karamurzina came up to say ‘hello’ because she knew of me. She had worked in IT for over twelve years, and I came to her with an offer to build a startup just when she needed a job. Since August 2024, we’ve been the co-founders of the Yessa app.” The ex-IWPR Program Manager for Central Asia began her journey in the startup ecosystem by participating in the Startup Nation hackathon as the Co-Founder of Yessa in September 2024, where she was awarded a special prize as the strongest startups chosen from over 40 teams. Zamirbek soon realized that she needed resources and expertise to scale Yessa and followed the path of one of the Kyrgyz founders of Antler, one of the leading global accelerators backing early-stage companies with offices worldwide. With the help of several...

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EDB Begins Pre-Feasibility Study for Hydropower Plant Cascade in Kyrgyzstan

The Eurasian Development Bank (EDB) and Kyrgyzstan’s Ministry of Economy and Commerce have signed a technical assistance agreement to initiate a pre-feasibility study for the Hydropower Plant (HPP) Cascade Project. The announcement was made on March 26 and marks a significant step forward in the development of one of Kyrgyzstan’s most ambitious energy infrastructure projects. This agreement builds on the existing partnership between the EDB and the Ministry, established under a Memorandum of Cooperation signed in December 2024. Scope of the Study Under the agreement, the EDB will finance the pre-feasibility study, which will include: Estimating preliminary capital expenditures Developing key technical solutions Assessing environmental and social impacts Outlining state support measures needed for project implementation The study will be carried out in collaboration with the Ministry and a designated consulting firm. Strategic Importance of the Suusamyr-Kokomeren Cascade The planned hydropower cascade will be situated on the Kokomeren River and consist of three power plants with a combined installed capacity of 1,305 MW. The project is expected to significantly enhance Kyrgyzstan’s electricity generation capacity, help meet growing domestic energy demands, and contribute to reducing greenhouse gas emissions. Hydropower is a cornerstone of Kyrgyzstan’s renewable energy strategy, and the Suusamyr-Kokomeren project is envisioned as a key driver of energy security and regional development. Regional and International Cooperation The EDB is a multilateral development institution comprising six member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. It finances regional development projects that foster economic integration across Eurasia. It is worth noting that in early 2024, Kyrgyzstan’s Ministry of Energy signed memorandums of understanding with China National Electric Engineering Co. Ltd. These agreements include cooperation on the construction of both the Suusamyr-Kokomeren HPP Cascade and the Kara-Kechin thermal power plant. Together, these initiatives underscore Kyrgyzstan’s strategic push to diversify its energy portfolio and strengthen infrastructure through international partnerships and sustainable energy investments.