Kyrgyzstan privatisation resume
State Property Fund, Kyrgyzstan
One of the main directions of the significant economic reforms in the
Kyrgyz Republic is considered to be the creation of the open market
economy. As a result of the successful implementation of privatisation
of state owned enterprises, active promotion of foreign direct
investment, development of small and medium size businesses and the role
of the private sector in GNP, the country has changed significantly. The
aim of the government's activities is to form a real basis for the
stable development of a social-oriented market economy.
At the very beginning, the Government of the Kyrgyz Republic
identified priorities, stages, forms and methods for privatisation. For
example, during the first stages of privatisation between 1992 and 1993,
it was planned to privatise the entities of the retail trade and food
industry. At the present time, the level of privatisation in these
sectors is 96.4 per cent. The main aim of the privatisation policy of
the second period, 1994-1995, was to reorganise medium size companies
operating in the industrial, transport and construction sectors of the
economy. This reorganisation included reorienting production for new
markets and forming new business relationships with suppliers of raw
materials. For these purposes, the State Property Fund of the Kyrgyz
Republic used the method competitive selling of state owned shares of
the companies. To make it more efficient, the above mentioned selling
was based on the preparation of business plans and competitive bidding.
At the present time, the level of privatised companies is as follows:
industry - 79.2 per cent; construction - 56.3 per cent; transport - 47.1
per cent. The level of privatisation averaged across these sectors is
60.7 per cent.
Nevertheless, the process of privatisation of state property in the
Kyrgyz Republic has not achieved adequate competitive conditions to
increase the efficiency of the local economy. For the purpose of
resolving such strategic problems, the Government decided to
demonopolise the largest companies in such sectors of the economy as
telecommunications, printing, aviation, energy and recreation, through
privatisation. The main idea of this demonopolisation is segmentation of
the strategically important national companies in order to attract
foreign direct investors who will bring to these new segmented companies
their skills in international management, marketing, new technologies
and financial expertise.
This type of privatisation has become the main reason for changing
the privatisation strategy. The main principles of the new policy are as
follows:
- decreasing the speed of privatisation due to the complexity of
the companies;
- using a case by case method of privatisation;
- attracting strategically important foreign and local investors.
Case by case privatisation includes financial diagnostics for
companies and corporatisation of companies into state owned joint-stock
companies, and/or the introduction of corporate governance. After
implementing all the necessary procedures, the government shares in
these companies may be sold through:
- commercial tender (level of price plays the
key role);
- investment tender (future investment conditions are the
main criteria);
- open auction.
In August 1996, the State Property Fund formed a list of companies
that will be privatised using case by case privatisation methods and are
deemed to be attractive to foreign investors. To co-ordinate all of the
steps effectively in the process of case by case privatisation, the
State Property Fund created the Case By Case Privatisation department.
The first tender for these companies is planned to be conducted in
October 1997. In order to make the privatisation process of these
companies more efficient, the State Property Fund plans to attract
international consultancies that will provide all the necessary
assistance in informing the world about investment opportunities in the
Kyrgyz Republic.
A list of companies for case by case privatisation
| Company | Industry | Charter
Capital (thousand soms) | State Share (%) |
1 | Trade House Ay-Churek | Retail
trade | 219.7 | 28.17 | 2 | Kara-Kol Dan-Azyk (Wheat storage and bread
combine) | Food
industries | 6,845.0 | 71.21 | 3 | Chuy Dan-Azyk (Wheat storage and bread
combine) | Food
industries | 14,440.0 | 50.00 | 4 | Joint-Stock Insurance Company
'Kyrgyzstan' | Finance | 2,221.3 | 70.75 |
5 | Tunguch-Kant (Sugar and soft drink
factory) | Food
industries | 16,549.4 | 70.80 | 6 | VLKSM Bishkek (Garment
factory) | Light | 6,366.7 | 80.00 |
7 | Bugu-Ene (Sewing
factory) | Light | 3,776.0 | 70.24 |
8 | Ak-Bula (Wool scouring
plant) | Light | 6,928.0 | 51.00 | 9 | Kasiet (Wool yarn
factory) | Light | 2,500.0 | 60.00 |
10 | OREMI (Heavy electrical machinery
plant) | Consumer and industrial
engineering | 327.9 | 46.00 | 11 | KEMZ Corporation (Electrical machinery
plant) | Consumer and industrial
engineering | 875.4 | 34.30 | 12 | TNC Dastan (Electric engineering defence
factory) | Consumer and industrial
engineering | 1,459.0 | 58.00 | 13 | Jetigen (Electrical plugs / machine blades /
consumer goods) | Consumer and industrial
engineering | 441.8 | 38.05 | 14 | Osh PATC-1 (Passenger auto transport
company) | Transport | 8,714.5 | 45.81 |
15 | Kyrgyzkabel (Electrical
cables) | Consumer and industrial
engineering | 679.6 | 35.00 | 16 | Aynur (Electric connectors and
transformers) | Consumer and industrial
engineering | 187.7 | 49.00 | 17 | Kyrgyz Tash (Decorative stone processing
plant) | Construction
materials | 1,864.0 | 70.14 | 18 | Tokmok AP KSM (Ceramic brick
factory) | Construction
materials | 8,732.2 | 36.99 | 19 | Mata (Textile
plant) | Light | 17,180.0 | 71.07 | 20 | Jibek-Jolu (Mineral water / children's
nutrition) | Food
industries | | 100.00 | 21 | Semetey (Fur
factory) | Light | 26,989.9 | 70.20 |
22 | Dan-Azyk (Wheat storage and bread
combine) | Food
industries | 2,326.2 | 71.23 | 23 | Kara-Suu Dan-Azyk (Wheat storage and bread
combine) | Food
industries | 12,346.6 | 41.95 | 24 | Ak-Suu (Corn processing / sugar / fructose
combine) | Food
industries | 73,340.5 | 71.03 | 25 | Kyrgyz Starch-Treacle Plant | Food
industries | 5,665.0 | 70.43 | 26 | Kyrgyz National Energy
Company | Utilities | 7,470,107.7 | 94.50 |
27 | Akyl
(Printing) | Printing | 31,084.6 | 80.00 |
28 | Kyrgyz Mining Combinate (Uranium
gold
refinery) | Mining | 203,817.5 | 87.00 |
29 | Kadamjay Antimony
Combinate | Mining | 301,749.0 | 84.00 |
30 | NarynHyrdoEnergyStroy
(Hydro-station
construction) | Construction | 418.6 | 42.02 |
31 | Kyrgyz Too-Tash (Marble processing
plant) | Construction
materials | 7,283.7 | 70.23 | 32 | Anar (Transformers / connectors / ceramic
insulator) | Consumer and industrial
engineering | 423.58 | 31.39 | 33 | Kan Industrial
Combine | Others | 2,712.4 | 71.23 |
34 | Dostuk (Electronic connectors / plastic
consumer goods) | Consumer and industrial
engineering | 1,176.6 | 36.99 | 35 | Kyrgyz Chemical-Metallurgical Plant (Silicon
and rare earth
metals) | Metallurgic | 49,005.0 | 70.00 |
36 | Kant Cement and Tile
Combinate | Construction
materials | 82,795.0 | 67.64 | 37 | Kurmenty Cement
Plant | Construction
materials | 429.39 | 70.81 | 38 | Kant Cement Plant | Construction
materials | 14,219.2 | 70.91 | 39 | Linoleum Factory | Construction
materials | 12,155.3 | 69.76 | 40 | National Airlines Company 'Kyrgyzstan
Aba-Joldoru' | Transport | 982,793.5 | 82.00 |
41 | Ainek (Sheet glass
plant) | Construction
materials | 47,314.0 | 69.9 | 42 | Setun (Machine tools and consumer goods
plant) | Consumer and industrial
engineering | 451.31 | 84.17 | 43 | Kyrgyzstroyfarfor (Porcelain
products) | Construction
materials | 8,315.0 | 70.00 | 44 | Bishkek Auto-Repair
Plant | Services | 11,002.4 | 75.00 |
45 | Bishkek Machine-Building
Plant | Manufacturing | 304,140.0 | 85.00 |
46 | Janar (Electrical engineering
factory) | Consumer and industrial
engineering | 1,418.1 | 40.24 | 47 | Bishkek Leather-Commodities
Plant | Light | 1,612.1 | 68.95 | 48 | Bishkek Chemical Plant
(Paints) | Others | 2,943.0 | 70.60 |
49 | Kyzyl-Kya Sut-Azyk (Milk
products) | Food
industries | 2,036.0 | 71.18 | 50 | Uzgen-Sut (Milk products) | Food
industries | 3,818.1 | 70.12 | 51 | Kyrgyzgasmunayzat (Gasoline and natural
gas) | Trade | 308,358.0 | 90.00 | 52 | Kyrgyztelecom
(Communications) | Communication | 573,147.0 | 85.00 |
53 | Kyrgyzneft (Oil extraction and
refinery) | Oil
processing | 605,070.0 | 85.00 |
54 | Plant
'KyrgyzHydroSteelConstruction' | Construction
materials | 1,126.6 | 35.27 | 55 | Shop 'Min-Turkun' (Hardware trading
company) | Trade | 2,353.7 | 50.00 |
Hotels |
56 | Issyk-Kul
Hotel | Tourism | | 100.00 | 57 | Bishkek
Hotel | Tourism | | 100.00 | 58 | Osh
Hotel | Tourism | | 100.00 |
For inquiries please contact:
A Chukin, Deputy Chairman State Property Fund, 57
Erkindik Ave., Bishkek, 720040 Kyrgyz Republic Tel:
7-3312-228346 Fax: 7-3312-620136 Email: atc@spf.bishkek.su
![](../../../../investguide/newpics/igbase.gif)
Back | Top
|