Kyrgyzstan International Affairs - The Times Of Central Asia

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Chinese Businesses Making Inroads into Kyrgyzstan’s Energy Sector

Chinese companies will repair two units of the Bishkek combined heat power plant (CHPP) and plan to invest more than $1 billion in other energy projects. Representatives of the Chinese company, TBEA visited the Bishkek CHPP, where it was decided that TBEA will send its specialists to overhaul the third and fourth power units, as well as train local specialists, the Ministry of Energy of Kyrgyzstan reported. TBEA chairman, Zhang Xin, together with the Kyrgyz Energy Minister, Taalaibek Ibraev, visited the Bishkek CHPP the previous day. The main topic under discussion was how to increase the electricity and heat capacity of the CHPP. Bishkek CHPP provides electricity to Bishkek and its suburbs, as well as heat to most apartment complexes in the capital. In 2017, TBEA built four new boiler units at the Bishkek CHPP with a total capacity of 300 MW. The Eximbank of China allocated a loan of $386 million back in 2013 for this purpose. After the accident at the CHPP in February this year, the Kyrgyz authorities decided to overhaul the old boilers. As a result, despite the corruption scandal in 2017, the same Chinese company will repair units three and four. Information on the reconstruction costs for the units has not yet been disclosed. When fully operational, Bishkek CHPP has 18 boiler units with a total capacity of 812 MW. Following the accident this winter, swathes of equipment failed and the total capacity of the CHPP was decreased by a large factor. Meanwhile, a Kyrgyz-Chinese business forum was held in Bishkek and attended by more than 60 companies, with contracts totaling $1.15 billion signed with various Chinese companies, mostly from the Xinjiang Autonomous Region. According to the Kyrgyz Government, a project to build a coal logistics center with a conveyor belt on the border of the two countries has been agreed upon and signed. The Chinese company, Dachenglongyuan, will invest $440 million in the project. The same company is reportedly to invest another $700 million to build a wind farm in southern Kyrgyzstan. Contracts for coal exploration and mining were also signed. Some experts attribute the accident at the Bishkek CHPP to low-quality coal mined in the Issyk-Kul region of Kyrgyzstan. One of President Japarov's campaign promises in 2020 was to end winter power outages and ensure the country's energy security. Despite the great opportunities for Chinese investors, however, many economists in Kyrgyzstan have warned against Kyrgyzstan's growing dependence on China. According to official data, as of January 1, 2024, Kyrgyzstan's debt stood at $6.3 billion, with about 40% of that owed to China's Eximbank.

Central Asia International Affairs Kyrgyzstan Kyrgyzstan International Affairs Business & Economy Kyrgyzstan Business & Economy

Kyrgyzstan and China’s Xinjiang Expand Economic Cooperation

On April 2nd, President of the Kyrgyz Republic Sadyr Japarov met Chairman of the Government of China’s western Xinjiang Uyghur Autonomous Region, Erkin Tuniyaz in Bishkek. With the participation of business representatives of more than 50 Chinese companies, discussions focused on proposals for digitalization, transport, logistics, investment, agriculture, and humanitarian projects. President Japarov stated that China is one of his country’s main trade and investment partners and noted the successful progress of the construction of the China-Kyrgyzstan-Uzbekistan railway; the largest joint project to date. He also emphasized the importance of increasing cooperation with the XUAR and accelerating the practical implementation of further joint projects, adding that Kyrgyzstan is ready to expand and strengthen cooperation with China within the Belt and Road initiative and the Central Asia-China format. A key topic of discussions was the expansion of bilateral cooperation in rare metals mining, the opening of a new air route between the Kyrgyz city of Osh and Xinjiang’s Kashgar, and the establishment of joint commercial and industrial parks. Erkin Tuniyaz also met the Chairman of the Kyrgyz Cabinet of Ministers Akylbek Japarov, who said that “In trade and economic cooperation, we rely on Xinjiang; this region of China is for us a kind of gateway to your country.” According to Chinese statistics, trade turnover between the two countries in 2023 amounted to $19.8 billion; an increase of 30% since 2022.

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Kazakhstan and Kyrgyzstan to Unite Against External Military Threat

Proposals are in place for Kazakhstan and Kyrgyzstan to enter an agreement on deepening and expanding allied relations. Drafted by the President of Kazakhstan Kassym-Jomart Tokaye, the decree, ‘On the signing of an agreement on deepening and expanding allied relations between the Republic of Kazakhstan and the Kyrgyz Republic’, was recently published on the Open Regulatory Legal Acts portal. The draft treaty states that when faced with a situation that “represents a threat of armed attack from third states, the parties will immediately hold appropriate consultations with each other, both bilaterally and within the framework of international organizations of which they are members, with a view to adopting measures conducive to its peaceful settlement." Furthermore, Kazakhstan and Kyrgyzstan will “confirm their commitment not to participate in any blocks or alliances, and also refrain from participating in any actions directed against the other party.” The territories and resources of both countries will not be used “for the purpose of preparing or carrying out aggression or other hostile actions against the other party, as well as to the detriment of the state sovereignty, security and territorial integrity of the other party.” Kazakhstan and the Kyrgyz Republic will prevent the use on their territories of “communication systems and other infrastructure by third states for the purpose of preparing or carrying out armed actions against the other party.” The draft document also makes provision for strengthening economic relations between the two countries, in particular “by creating favorable conditions for mutual access of goods, services and investments, their protection in the territories of their states, and the implementation of joint investment projects.”

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Kyrgyzstan Assassination Plot: Suspected Crime Boss Raimbek Matraimov Held in Pretrial Detention

The corrupt Kyrgyz oligarch Raimbek Matraimov will spend the next month in pretrial detention in Bishkek, after the former deputy head of Kyrgyzstan’s customs service was extradited from Azerbaijan on Tuesday. Matraimov, once known as the country’s “kingmaker” for the influence his clan held over the Kyrgyz Government, was found to have profited from corrupt schemes he ran at the customs service, laundering at least $700 million for himself by allowing companies to evade import fees. In October 2020, upon the formation of a new government led by President Sadyr Japarov, Matraimov was ordered to repay $22.3 million in damages and restitution back to the state. However, rather than fall in line with Kyrgyzstan’s crackdown on organized crime, in recent years Raimbek Matraimov appears to have remained outside the law. The former official is now suspected of orchestrating a recent plot to assassinate members of Kyrgyzstan’s current leadership in retribution for the government’s fight against organized crime. It is the discovery of this plot that led Kyrgyz law enforcement to request Matraimov’s extradition this week from Baku, Azerbaijan’s capital, along with his three brothers, Tilek, Islambek, and Ruslan. Of the Matraimov brothers’ seizure in Azerbaijan, the Kyrgyz State Committee for National Security (CNSK) commented: “In this regard, on March 22, employees of the CNSK carried out operational and investigative measures, as a result of which all the above-mentioned persons were detained [in Baku]. Currently, investigative measures are being carried out to bring them to justice, according to the laws of Kyrgyzstan.” On Wednesday, March 27, the Birinchi Mai district court in Bishkek ruled that Raimbek Matraimov must stay in pretrial detention at the CNSK’s detention center until at least April 26. Officially, he is suspected of “money laundering and the abduction and illegal incarceration of unnamed individuals”. Matraimov had already been placed on the U.S. Treasury Department’s sanctions list, and the Global Magnitsky Human Rights Accountability Act (the ‘Magnitsky Act’), for his previous crimes at the customs service.

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Kyrgyzstan Takes Issue With Uzbekistan’s Hydropower Plans

Uzbekistan's grandiose hydropower development plans are irking neighboring Kyrgyzstan, which is experiencing a shortage of water resources. These shortages have in part been caused by Kyrgyzstan swapping its water with Uzbekistan and Kazakhstan in exchange for electricity. Uzbekistan's construction of six hydroelectric power plants (HPPs), with a total capacity of 228 megawatts, has begun on the Naryn River in the Namangan region. The Uzbekhydroenergo project is estimated at $434 million and will generate up to 1 billion kilowatt-hours of electricity per year, enough to provide energy for 430,000 households. This will allow the country to save up to 310 million cubic meters of gas annually, to help alleviate shortages which has seen Uzbekistan turn to Russia. The launch of the hydro project will provide the Namangan region with 7.8 billion kWh per year, which far exceeds local demand. This surplus energy will be transferred to neighboring regions in the Fergana Valley, and will guarantee energy supply during periods of peak consumption. These plans contrast greatly with Kyrgyzstan's situation, as the republic imports 3 billion kWh of electricity from neighboring states during the fall and winter seasons. Uzbekistan and Kazakhstan supply Kyrgyzstan with electricity in winter, and in return Kyrgyzstan provides them with water in summer, measuring the volume of water using a generator, and thus paying back the debt for the electricity. According to official data, the Toktogul Reservoir in Kyrgyzstan is designed to hold 19.2-19.6 billion cubic meters of water. Kyrgyz Deputy Energy Minister, Talaibek Baigaziyev noted at a March 4 press conference in Bishkek that with electricity consumption on the increase and water levels falling, people urgently needed to curtail their usage. Water levels had already stopped at 7.7 billion cubic meters, versus a normal level of 17.3 billion cubic meters, leading to a risk of possible blackouts. If the level reaches anything below 6.5 billion cubic meters, the Toktogul HPP will stop. In 2024, the Kyrgyz authorities plan to launch 11 HPPs, five large and six small. According to the Eurasian Development Bank, Kyrgyzstan's energy sector will be operating under a state of emergency from now until the end of 2026. Kazakhstani experts have also expressed concern about their neighbors' energy development plans. They say water shortages could worsen in the region, with water already scarce in Kazakhstan. Bulat Yesekin, an expert on environmental policy and institutional frameworks for environmental protection, notes that "large hydropower plants further aggravate the problem of water supply and disrupt environmental sustainability. All over the world today there are campaigns to demolish hydroelectric dams and restore the natural regime of rivers. Only the preservation of natural river regimes can reduce water scarcity and create a more reliable basis for water supply for agriculture and industry." The construction of HPPs in border areas continues to create transnational problems. Altering river courses can destroy or alter ecosystems, change biodiversity, affect fisheries and agriculture, erode coastlines, and increase the risk of flooding in certain areas; yet access to electricity is a key issue across Central...

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Russia’s Rosatom to Build Wind Farm, Nuclear Plant in Kyrgyzstan

On the eve of the 13th ATOMEXPO-2024 International Forum in Sochi, Russia, representatives of the Kyrgyz Ministry of Energy signed an agreement with representatives of Russian state nuclear company Rosatom on the implementation of small-scale energy projects in Kyrgyzstan. At the forum, Rosatom's management announced that the parties agreed to develop projects and then build small power facilities in Kyrgyzstan with a capacity of up to 400 MW, in different regions of the republic: the Jalal-Abad, Talas and Batken regions. "The Kyrgyz Republic has tremendous potential for the development of small hydropower and construction of hydropower plants. Together with Rosatom's in-depth expertise, it becomes possible not only to build environmentally friendly energy sources, but also to create sustainable infrastructure and decent jobs in the region," said Evgeny Salkov, general director of JSC Rosatom Service. Rosatom Service is a subsidiary of Rosatom which deals with maintenance of energy facilities, including nuclear power plants. The Kyrgyz delegation said that it's ready to support any investment in the country's energy sector. "Kyrgyzstan has created a favorable environment and conditions for international investment in hydropower projects. I am sure that Rosatom's serious long-term plans related to investments in the Kyrgyz Republic will serve as the right message for domestic investors as well. Investments in the hydropower sector in Kyrgyzstan are profitable and reliable investments, and the government of the republic will continue at all levels to support the construction of new HPP projects," said Taalaibek Ibraev, Kyrgyzstan's minister for energy, speaking at the forum. Meanwhile, Rosatom believes that Kyrgyzstan has great potential in developing green energy. Moreover, Kyrgyz authorities' diversified approach to the development of the energy sector will contribute to the country's energy independence. According to Rosatom CEO Alexey Likhachev, the Kyrgyz leadership is now expressing serious interest in building a small nuclear power plant, as well as wind farms. "We are working on all of these directions. In particular, we have already reached agreements on the construction of a 100 MW wind power plant in the Issyk-Kul region. This is the first step, because the leadership of Kyrgyzstan plans to build wind power capacity of at least 1 GW," Likhachev said. Currently the Russian company is building several small hydroelectric power plants in the west and south of Kyrgyzstan. Earlier, Rosatom concluded a memorandum with the Kyrgyz authorities to work out a roadmap for the construction of a low-capacity nuclear power plant in the Central Asian republic, which will consist of two power units of 55 MW each. The situation is complicated by the fact that almost the entire territory of Kyrgyzstan is located within a zone of elevated seismic activity.