BISHKEK: Kyrgyzstan’s President Sadyr Japarov has addressed concerns regarding the country’s external debt, the construction of the Kambar-Ata-1 Hydropower Plant (HPP), and the ambitious China-Kyrgyzstan-Uzbekistan railway project in an interview with Kabar news agency.
President Japarov reassured the public, stating, “There are no grounds for any concerns about our foreign borrowings. There is no threat.” He acknowledged the need for prudent management of loans, highlighting past projects where funds were not utilized efficiently. The president specifically mentioned the North-South Alternate Road, Datka-Kemin, and combined heat and power plant projects, which he noted were overpriced with inadequate control and instances of embezzlement.
“The latest loans obtained for the North-South Alternate Road, Datka-Kemin, combined heat and power plant were right. We needed those projects. But they cost twice more. Control was very bad, there was embezzlement,” President Japarov stated.
He emphasized that despite criticism for not repaying debts sooner, the country plans to adhere to the repayment schedule set for 2035. President Japarov explained that repaying the debt ahead of schedule would incur higher interest rates, making it less advantageous for the country.
Regarding the construction of the Kambar-Ata-1 HPP, the president expressed readiness to obtain a loan for the project, highlighting its potential to pay off in 12-13 years and subsequently benefit the state throughout its operational life.
President Japarov also discussed the China-Kyrgyzstan-Uzbekistan railway project, acknowledging the significant investment required. While recognizing the extended payback period of 35-40 years, he emphasized the strategic importance of the railway in transforming Kyrgyzstan from a dead end to a transit route. The president expressed the government’s commitment to exploring avenues for implementing the project without relying solely on foreign borrowings.
“We are looking for ways of implementation of the project not from foreign borrowings. Hopefully, we will resolve this problem and begin construction of the railway soon,” President Japarov stated.
