With Major Plant Modernization, Kyrgyzstan Seeks To End Construction Woes

Kyrgyzstan’s construction sector received a significant boost on June 16 with the launch of a new production line at the Kant cement plant, the country’s largest cement producer. Located in the city of Kant, about 20 kilometers east of Bishkek, the plant has been in operation since 1964 and remains a cornerstone of the national construction materials industry. Its modernization was carried out in partnership with China’s Beijing Triumph Engineering and the Eurasian Development Bank, with total investments exceeding $60 million. In 2024, the plant produced 1.156 million tons of cement. The new production line is expected to add 800,000 tons of clinker capacity annually, enhancing the plant’s output and improving cement quality to better meet domestic demand. At the launch ceremony, President Sadyr Japarov emphasized the rapid growth of Kyrgyzstan’s construction sector, citing a surge in infrastructure development across the country. “In just the first three months of 2025, 3,300 residential buildings totaling 419,000 square meters were commissioned, 32.2% more than during the same period last year,” Japarov stated. Despite this expansion, Kyrgyzstan has recently faced a cement shortage due to soaring demand driven by the construction of homes, schools, roads, and social infrastructure. The surge has also led to price hikes, prompting government action. The Times of Central Asia previously reported that the Ministry of Economy and Commerce has proposed designating cement as a “socially significant good,” a status that allows the state to regulate the prices of essential materials. The ministry argued that unchecked pricing has inflated housing costs and impeded the timely completion of social projects. The modernization of the Kant cement plant is expected to help ease these pressures by increasing supply, stabilizing prices, and supporting Kyrgyzstan’s continued infrastructure development.

Kyrgyz Authorities Seek to Classify Cement as Socially Significant

The Ministry of Economy and Commerce of the Kyrgyz Republic has released a justification for its decision to include cement on the list of socially significant goods, a designation that allows the government to regulate prices for essential items, including construction materials. According to the ministry, the absence of state oversight has led to unjustified increases in cement prices, placing upward pressure on housing costs and hindering the construction of social and infrastructure projects. “This situation limits the population's access to quality, affordable housing and slows the country’s socio-economic development,” the ministry stated. By classifying cement as a socially significant good, the government gains the authority to regulate its price. The move aims to stabilize the construction market, lower building costs, and improve housing affordability for the public. Officials at the ministry expressed confidence that the measure would not cause any significant negative consequences. The only potential downside, they noted, would be a reduction in profits for cement manufacturers and intermediaries, primarily in conditions of market volatility where price ceilings may be imposed. Kyrgyz economists support the move, arguing that state price regulation will help stabilize the domestic cement market, stimulate the construction industry, and improve the broader socio-economic outlook. They also believe it will bolster regulatory oversight of the construction sector. The ministry further warned that the lack of effective pricing mechanisms poses risks of shortages or sudden price spikes during periods of heightened demand. In contrast, stable cement prices would boost confidence among construction firms, enabling better planning and project implementation. To ease supply constraints, the Kyrgyz cabinet previously lifted a temporary ban on cement imports, aiming to satisfy a growing demand from construction companies and the general population through additional foreign supply.