Local Economy - The Times Of Central Asia

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Better Buses Help Air Quality in Bishkek to Improve

Officials claim that the air quality in Kyrgyzstan’s capital, Bishkek, has significantly improved over the last two years due to the ongoing renewal of the municipal transport fleet, switching residential heating from coal to natural gas, and extinguishing the sanitary landfill near Bishkek that had burned for decades. Chyngyzbek Abdymalik Uulu, an atmospheric air specialist at the Kyrgyz Ministry of Natural Resources, Ecology, and Technical Supervision, told Birinchi Radio that the primary sources of air pollution in Bishkek were low-quality coal, exhaust gases from motor transport, and the burning of municipal solid waste at the city landfill. The official says that, in large part, the air quality has improved due to the decreasing number of minibuses on Bishkek streets. Over the past 30 years, "markhrutka" minibuses — mainly aged Mercedes minivans — have been the primary type of municipal transport in Bishkek, vastly surpassing in number the limited fleet of large buses and trolleybuses. Running on diesel, these old marshrutkas spew harmful gases into the atmosphere and congest city traffic, since they stop anywhere on demand. Abdymalik Uulu said more than 3,000 minibuses ran in the capital until 2022. After their number was reduced over the last two years, diesel fuel consumption decreased by 100 tons daily. The Bishkek municipality has now removed the minibuses from the central part of the city and replaced them with large buses running on liquefied natural gas. In 2023, Bishkek purchased a thousand large buses from China, which have been arriving in the capital city in batches over the past year. Today, the municipal fleet has 1,200 buses. In addition, by the end of 2024, the city will receive 100 12-meter-long buses, and 120 electric buses will arrive in the second quarter of 2025. Both officials and analysts agree that renewing the municipal transport fleet will improve the air quality in Bishkek. Abdymalik Uulu added that gasification is another reason for the improved air quality. To date, about 20,000 households have been connected to natural gas networks, which has decreased coal burning by 58,000 tons. Also, he said, all of Bishkek’s 74 large boiler houses that used to burn large amounts of coal daily have now been converted to electricity and natural gas. Finally, the Bishkek sanitary landfill, which burned for decades and released large volumes of harmful emissions, has been completely extinguished.

ADB Climate Change Local Economy Wastewater treatment Sustainable tourism

ADB Funds Wastewater Management and Sustainable Tourism in Issyk-Kul, Kyrgyzstan

On June 24, the Asian Development Bank (ADB) announced its provision of $56 million to improve wastewater management and enhance sustainable and inclusive tourism in Kyrgyzstan’s Issyk-Kul region. The funding comprises a $25 million concessional loan and a $31 million Asian Development Fund (ADF) grant. The Issyk-Kul region, with its rich ecological and biological diversity and Issyk-Kul Lake, has long been a popular tourist destination, with some 80% of holidaymakers choosing to stay at the lakeside resort of Cholpon-Ata. However, due to its age, the town’s wastewater network currently serves just half of the permanent population and excludes almost a third of tourism facilities. To address the issue, ADB funds will be invested in a climate-resilient infrastructure including a wastewater treatment plant, pumping stations, and improved sewer infrastructure, serving Cholpon-Ata's main resorts, guesthouses, residential and business sectors. In tandem with helping preserve the environment around the lake, the initiative will support local authorities in developing a climate-resilient tourism master plan for the area. The project will also boost the area's tourism infrastructure through the creation of a museum and information centre, improving and conserving the local archaeological heritage site, constructing bike trails and walking paths around the lake's shoreline, upgrading three public parks, and facilitating access to green spaces. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “Economic growth can be driven by low-carbon tourism built on sound environmental practices and climate-resilient infrastructure. ADB’s project addresses critical challenges faced by Cholpon-Ata’s tourism industry. By integrating environmental improvements and wastewater investments with tourism infrastructure, we are helping shift Kyrgyz Republic to a low-carbon growth trajectory.”

Finance Agriculture Local Economy

Kazakhstan Offers Low-Interest Loans for Agro-Industrial Sector

Kazakhstan’s Ministry of Agriculture has announced changes to rules concerning loans to agro-industrial projects. The new rules aim to both stimulate the development of Kazakhstan’s agro-industrial sector and create new or expand existing production facilities. Entrepreneurs will now be able to implement their projects using state loan funds at a preferential rate of 2.5% for up to 10 years. The maximum loan is 5 billion tenge. Loans will be prioritized for projects in twelve key areas including the creation of dairy farms, poultry farms for meat production, meat livestock enterprises, vegetable storage facilities, irrigated agriculture using modern water-saving technologies, industrial greenhouse complexes, fruit storage facilities, fish farming, fish processing enterprises, breeding reproducers in poultry farming, deep processing and storage of agricultural products, and production of packaging materials.

Tourism Education Local Economy USAID Hospitality Women entrepreneurs

USAID Supports Central Asian Women Working in Hospitality

The U.S. Agency for International Development (USAID) and the International Association of Businesswomen “Tadbirkor Ayol” last week hosted a Central Asian Conference on “Women of Central Asia in the Hospitality Business: Current Challenges and Opportunities”. The event in Tashkent attracted some 200 women entrepreneurs, professionals, and industry experts from Uzbekistan, Tajikistan, and Kyrgyzstan to discuss achievements, trends, and challenges in the region’s hospitality sector. As reported by the U.S. Embassy in Uzbekistan, the conference focused on service quality, digitalization, and modern standards in tourism, culminating in recommendations to enhance regional cooperation in tourism and hospitality. Praising the resilience and creativity of women in the hospitality industry and emphasizing their role in the sector’s future, Edward Michalski, USAID Deputy Mission Director in Uzbekistan, commented: “Investing in women and girls is essential to transforming communities. When women do better, families do better, communities do better, and countries do better.” Gulnora Makhmudova, Chairwoman of “Tadbirkor Ayol,” noted that the growing importance of the region’s hotel business and the increasing involvement of women, had spurred the association into launching “Women in the Hotel Business: Hospitality from the Future;” a project aimed to introduce innovation and digitalization in the hospitality sector. Since its launch in April 2024, with support from USAID, the project has provided training for 115 women in modern hotel management in Tashkent, Andijan, and Samarkand.

Local Economy International trade Livestock products Export market

Turkey Lifts Restrictions on Import of Livestock and Poultry Products from Kazakhstan

Kazakhstan’s Ministry of Agriculture has announced that from June 7, 2024, restrictions on the supply of Kazakh livestock and poultry products to the Turkish market have been lifted. The restrictions were originally made to prevent the spread of avian influenza, in 2005, foot-and-mouth disease, in 2016, and lumpy skin disease, in 2022. In March 2024, the Minister of Agriculture of Kazakhstan, Aidarbek Saparov, raised the issue of export barriers during the meeting of ministers of agriculture of the Organization of Turkic States in Taraz, Kazakhstan. At the time, Saparov explained that Kazakhstan was ready to supply high-quality meat products to Turkey as well as Turkmenistan and Hungary, but complained that the Turkish market was all but closed to Kazakh meat exporters due to veterinary concerns. Pleading his case, he continued, “This year, similar restrictions on Kazakhstan have been lifted by China and Russia. So, we believe it is now possible to revisit this issue with the Turkish side.” With the restrictions now lifted, the next step towards exporting Kazakhstan’s livestock products will involve the coordination of veterinary requirements with Turkish authorities. The issue will be addressed during Minister Saparov’s next visit to Turkey in August.

Local Economy Motor fuel LPG

Price of Liquefied Petroleum Gas to Rise Again in Kazakhstan

The Ministry of Energy of Kazakhstan has published for public discussion, a draft by the Minister of Energy to increase the price of liquefied petroleum gas (LPG) from July 1. The maximum wholesale price of one ton of LPG will be increased from the current 40,320 tenge to 45,158 tenge, and the maximum retail price will increase slightly — by 5-8 tenge per liter, depending on the region. Cheaper than gasoline, LPG is the most popular fuel for vehicle owners in Kazakhstan. A sharp hike in the price of LPG was met with nationwide objection in January, triggering mass protests in Zhanaozen which spread nationwide and turned violent in Almaty and Astana. The ministry issued several reasons for what will be an unpopular move. First, the price of liquefied petroleum gas is much lower than the cost of its production. The production cost of LPG varies from 60 thousand to 70 thousand tenge per ton, whereas the current maximum wholesale price is 40,320 tenge per ton. Second, LPG consumption in Kazakhstan increases year on year. In 2023, it increased by 400 thousand tons, or 28%, compared to 2022. Last year, LPG consumption volumes amounted to 2.2 million tons compared to 1.8 million tons in 2022. Increasing consumption and the unprofitability of LPG production due to low prices have led to a decrease in the production of the fuel and its shortage in the regions. Today the deficit of LPG stands at 20-25%. Third, due to unprofitability, manufacturers are increasingly losing interest in LPG production and switching instead, to more profitable products. For the same reason, investors are also reluctant to invest in its production. Fourth, the price of LPG in Kazakhstan, between 54-86 tenge per litre depending on the region, is the lowest among former Soviet states. For comparison, the price per litre in Russia is equivalent to 132 tenge; in Kyrgyzstan, 159 tenge; in Azerbaijan, 171 tenge; and in Tajikistan, 273 tenge. According to analysts, in 2024, LPG consumption in Kazakhstan will increase by another 200 thousand tons and reach 2.4 million tons, leading to a potential shortage of 30-40%