BISHKEK (TCA) — The Russian-Kyrgyz Development Fund (RKDF) has approved a $15.5 million project to support two sugar plants in Kyrgyzstan’s northern Chui province — Koshoi and Kaindy-Kant, the RKDF said.
According to Alexander Shalyuta, Kaindy-Kant’s general director, the plant is the only operating sugar plant in Kyrgyzstan, with annual capacity of 50-55 thousand tons of sugar. This meets 50 percent of the country’s need for sugar, with the remaining sugar being imported.
The Koshoi sugar plant has been standing idle from 2008 due to the absence of investment. The RKDF funds will help restore the idle plant and modernize its production facilities.
“The plant’s restoration will allow meeting 100 percent of the country’s demand for sugar with domestic production. Also, after the launch of the plant, the number of farmers growing sugar beets would increase from 20 thousand to 50 thousand,” said Alexander Barbalat, Koshoi’s general director.
In addition to import substitution, Kyrgyzstan would be able to export sugar to Eurasian Economic Union countries, and regain its position as Central Asia’s largest sugar producer.
The Russian-Kyrgyz Development Fund was established in accordance with intergovernmental agreements signed in 2014. The Fund is based in Bishkek, and its Board includes three representatives of Kyrgyzstan and two of Russia.
The Fund aims to help the Kyrgyz economy to adapt to the Eurasian Economic Union and implement investment projects in Kyrgyzstan. The Fund finances projects on favorable terms providing preferential loans. The Fund does not lend to the Government of Kyrgyzstan as a sovereign borrower, but works with market participants including businesses and private enterprises. The Fund’s authorized capital is $500 million.
In 2015, the RKDF launched a program to finance small and medium-sized enterprises with the focus on agriculture, garment, textile and manufacturing industries.
