Construction - The Times Of Central Asia

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Kyrgyzstan Lacks Cement Amid Booming Construction

Kyrgyzstan is experiencing a cement shortage as new high-rise residential buildings and thousands of one- and two-story houses are being erected nationwide. This booming construction requires a large amount of cement, which has caused huge demand for the product. Local media quoted Syrgak Omorov, a representative of the Anti-monopoly Regulation Service, as saying that domestic producers are not capable of meeting the growing need. The Kant cement plant, the country’s largest cement producer, typically produces 600,000 tons of cement annually, but this year the production volume has already exceeded a million tons. According to Omorov, the Kant cement plant can produce up to 4,000 tons daily, but market demand is 5,000 tons. The official attributes the shortage to the unprecedented scale construction of housing and social facilities, such as schools. Earlier this month, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov, announced that the number of new schools and residential buildings constructed in Kyrgyzstan has exceeded Soviet-era figures. Japarov cited data from the National Statistical Committee, saying that 1.560 million square meters of residential housing were built in Kyrgyzstan when it was part of the Soviet Union in 1990. In 2023, independent Kyrgyzstan constructed 1.587 million square meters of housing. The highest numbers of secondary schools were built in 1968 and 1987 — 50 in each of those years, while in 2023, Kyrgyzstan built 105 new schools. Last week, TCA reported that Kyrgyzstan is also suffering from a shortage of laborers, with the head of the construction agency in the Kyrgyz Republic stating that the construction industry alone urgently needs at least 10,000 workers.

Transport Economy Social Construction

Kazakhstan’s First Automobile Tunnel and Largest Bridge to be Completed this Year

As reported by the Kazakhstan's Ministry of Transport, Kazakhstan's first automobile tunnel through the Shakpak Baba Pass and the country's largest bridge over the Bukhtarma Reservoir are due for completion by the end of this year. All concrete work has been completed and an asphalt road laid in the Shakpak Baba road tunnel. Lighting has been installed and work is now underway to install video surveillance, lay gas pipes, ventilation, and firefighting equipment. Development of the country's longest bridge is likewise on schedule. Around 81% of the bridge supports has been erected and 17 of the 21 piers have been built. Regarding progress on both of the ambitious projects, Transport Minister Marat Karabayev announced, "We plan to complete the construction of the country's first automobile tunnel through the Shakpak Baba Pass by the end of this year. Additionally, we aim to complete the construction of the largest bridge in Kazakhstan over the Bukhtarma Reservoir. The total length of the two-lane road bridge across the Bukhtarma reservoir near the village of Kuigan in East Kazakhstan region will be 1,316 meters."

Sports Construction

Kyrgyz Football Gets Boost as Construction Starts on New Stadium

Kyrgyzstan is building a 45,000-seat stadium designed to host Asian Football Confederation finals as well as FIFA group matches. This week, President Sadyr Japarov announced that construction on the new stadium near Bishkek had begun and would take two years. Local and Turkish architects and engineers are involved, and there are also several advisers from Britain, he said. The shape of the stadium will aim to evoke a yurt, a circular tent that was a staple of nomadic life in Central Asia for millennia. Last year, FIFA President Gianni Infantino urged Kyrgyzstan to build a new football stadium to help develop the sport there. Kyrgyzstan’s national team does not have its own dedicated stadium. Currently, it plays matches at the Dolen Omurzakov Stadium in Bishkek. The facility, which can hold about 23,000 spectators, is also used by two local clubs.

Ashgabat Construction Turkmenistan

Turkmenistan to build Ashgabat City compound

ASHGABAT (TCA) — The Administration of the Turkmen capital Ashgabat last week hosted a presentation of a large-scale social project — the construction of a new residential compound with high-rise buildings in the northern part of the city where more than 100,000 people would live, the State News Agency of Turkmenistan reported. Total area allocated for the grandiose complex of more than 200 buildings is 744 hectares. It is planned to erect 180 buildings, ranging from 12 to 35 floors in height, with 17,836 apartments. The entire compound is designated for living of more than 107,000 people. The new city including an administration centre, service and medical facilities, cultural centres, educational and other social infrastructure facilities will appear in the north of Ashgabat. The new compound’s infrastructure will be based on a smart city model. The project, which was approved by President Gurbanguly Berdymukhamedov and received an unofficial name of Ashgabat City, provides for the construction of the building of local administration and other government facilities, four secondary schools for 3,000 students and the same number of kindergartens which would be able to host 1,200 children, as well as original buildings of Turkmen National Conservatory and a specialized musical school. The facilities of social and living infrastructure will include a multifunctional hospital, two clinics, two shopping and entertainment centres, shops and cafes, a stadium and sports complex, and four multilevel car parking lots. It is also planned to build branch offices of Türkmenbaşy and Halkbank State Commercial Banks. It was said at the presentation that 35-storey buildings will be constructed in Turkmenistan for the first time, so seismic resistance technologies are of particular importance.

Construction Housing Economy Kyrgyzstan Finance

Kyrgyzstan: Preferential mortgage lending not affordable for state employees

BISHKEK (TCA) — Parliament deputies and experts are dissatisfied with the results of the state mortgage program in Kyrgyzstan because it is not affordable for state employees. The monthly salary of a teacher with three years of experience is about 6,500 soms ($93), and with 30 years of experience — about 15,000 soms. With such salaries, they cannot afford a state mortgage loan, MPs said. The State Affordable Housing program started in March 2016 to improve the issuance of preferential mortgage loans to state employees. Loans are provided by banks, which are compensated for the difference between market and preferential loan rates. Since November 1, 2018, the rates on newly issued loans under the program have been reduced to 7-9% per annum. Previously, they were from 8% to 12%. The State Mortgage Company OJSC (SMC) is the program operator. According to the SMC head Baktybek Shamkeev, if a citizen wants to obtain a 1 million soms loan, the total family income should be 22-24 thousand soms (around $330) per month. If a person receives a loan of 2 million soms, the total monthly income should be 45-50 thousand soms. Most civil servants in the country do not have such an income, MPs said. Poor program implementation The State Mortgage Company is working poorly on the implementation of the Affordable Housing program because only a limited part of solvent citizens who work in the public sector have received mortgage loans, concluded the Accounting Chamber following the results of the company’s audit. The unavailability of state mortgage for the public sector was affected by the high interest rate resulting from the conclusion of agreements with partner banks with the provision of an added 5% annual rate along with a 3% rate (previously 5%) of a budget loan received from the Finance Ministry. The auditors advised to reduce the cost of state mortgage by reducing the income of the State Mortgage Company and commercial partner banks. Overpriced loans The Affordable Housing program may become unavailable, MP Marlen Mamataliev said. The State Mortgage Company has not achieved good performance due to very high down payment amount and interest rates, he explained. The SMC says that loans are issued at 9%, but in reality people get loans at 14-16%. In addition, the cost of apartments in the houses the company provides is very high, which does not comply with the principles of the Affordable Housing program. For instance, an apartment in a house built in Naryn costs $34.8 thousand. If a teacher or doctor receives it at 9%, he will have to pay 12 thousand soms per month for 15 years. After 15 years, the apartment will cost him $67 thousand. Shamkeev told MPs about the SMC plans to create its own housing stock. Replenishment of capital is planned due to the Government’s contribution, he added. According to the program, it was planned that construction companies would build housing at their own expense, and SMC would redeem. However, not all companies can afford building of...

Foreign debt Trade Construction Mining Industry Remittances Kumtor Economy Kyrgyzstan

Kyrgyzstan’s economic growth in 2017 exceeds the IMF forecast

BISHKEK (TCA) — Kyrgyzstan’s gross domestic product in 2017 was 493 billion soms and increased by 4.5% compared to 2016, the National Statistical Committee of Kyrgyzstan said. The GDP growth was higher than the forecasts of the government and international financial institutions including the International Monetary Fund and the World Bank. At the end of 2016, the IMF and WB expected growth of no more than 3.5%. According to the conclusion of the IMF mission in November 2017, the country’s GDP was expected at 3.2%. The forecast for Kyrgyzstan’s economic growth was lowered by 0.3% due to the situation on the Kyrgyz-Kazakh border. Kyrgyzstan’s industrial output amounted to 231 billion soms last year and increased by 11.5% compared to 2016. The industry grew due to the growth of extraction of metal ores and crude oil, as well as production of plastic and food products including beverages and tobacco products. Dependence on Kumtor In early 2017, the GDP growth was very impressive — more than 7%. However, the year ended with an increase of 4.5% due to the impact of the operation of the Kumtor gold mine. The economy is still dependent on gold mining, while investors are not in a hurry to enter Kyrgyzstan. Dependence on one enterprise represents a significant risk to the economy. In 2018, the gold production will decrease at Kumtor, so it is likely that the current GDP may also change, experts say. One of the main events of 2017 was the signing of a new agreement on Kumtor between the government of Kyrgyzstan and Centerra Gold. In December 2017, it was 20 years since the development of the Kumtor mine started in the country. Over the years, several unsuccessful attempts have been made to conclude an agreement beneficial to the Kyrgyz side. Finally, in September 2017, the Kyrgyz government and Centerra signed a new agreement under which the Canadian company will allocate $50 million to the newly established Environmental Development Fund to finance environmental protection measures. The money will primarily be used for the modernization and construction of new modern treatment facilities in the water area of Lake Issyk-Kul. In addition, the annual environmental payment was increased to $3 million. The new agreement on Kumtor became a signal to foreign investors that they can enter the country. Industrial growth and trade The industrial growth indicators are encouraging. Earlier, mainly services and trade were developing, and the population received revenues from re-export. Currently, the country's economy is aimed at industrial production. Among the countries of the Eurasian Economic Union, the largest growth in industrial production in the ten months of 2017 was recorded in Kyrgyzstan — 13.7%, the Eurasian Economic Commission announced in December 2017. For 11 months of 2017, Kyrgyzstan's foreign trade amounted to $6 billion, 11% more compared to 2016. Exports increased by 12.8% and imports by 10.2%. The exports grew due to the increased exports of glass, butter, precious metals, non-monetary gold, and dried fruits. The country increased imports of fabrics, ceramic products,...