BALYKCHY Investment Profile

2019

1 CONTENTS

ABOUT FREE ECONOMIC ZONE - Why invest in Balykchy city?...... 5 - Labor potential ...... 20 04 - General information ...... 6 19 - Infrastructure ...... 21 - Geostrategic position ...... 7 - Main characteristics of the economy ...... 7 FOR INVESTORS - Investors' success stories ...... 22 22 - Tax and other preferences ...... 23 COMPETITIVE SECTORS - Services provided by the - Logistics ...... 8 mayor’s office ...... 24 08 - Fruits, Berries and Agricultural - Detailed information on registration of legal entities ...... 25 products processing ...... 10 - Permit documents for - Renewable energy ...... 11 construction ...... 26 - Key companies by sector...... 27 - Bank and notary offices ...... 28 - Electronic Municipality Project ...... 28 - Strategic documents ...... 29 INVESTMENT LOTS - Quality of life ...... 29 - The figure #1...... 13 12 - The figure #2 ...... 14 - The figure #3 ...... 15 - The figure #4 ...... 16 - The figure #5 ...... 17 - The figure #6 ...... 18 CONTACTS ...... 30 ABOUT BALYKCHY

WHY INVEST IN BALYKCHY CITY?

The city of Balykchy is the most important Issyk-Kul. It is a final destination of the railway −− The city has an exceptionally suitable geo- −− For brownfield and greenfield investments, economic and transport center of the Issyk-Kul Lugovoe--Balykchy, which connects the strategic location, close to the border with the municipality offers to potential investors region. The city is located at the junction of city with the CIS railway network. The city of and , and is an important built and unused processing capacities and trunk roads which lead from the , Balykchy is particularly singled out by available transport hub in the northern part of land owned by the municipality of total area northern and southern shores of Lake Issyk-Kul. sea port through which large cargoes are with access to rail, water and of 656.8 hectares, including the land of the The strategic location of the city contributed to transported in the water area of the lake. road transport. Free economic zone. the development of trade markets infrastructure The city traces its history from the small fishing −− It also stands out by excellent conditions −− The municipality of Balykchy city is and logistics. The trade in the city’s markets settlement Bachino, which in 1909 was renamed for developing food processing sector committed to provide best support to the is active all year round, which attracts the the Rybachye . It received city status in thanks to the availability of qualified investor through benefits and investor residents and businesses from the Issyk-Kul 1954 and developed as a major transport and and cost competitive workforce and well servicing program. Balykchy city is an ideal region. industrial hub. In ancient times, it was one of developed infrastructure. place for your investment! Balykchy is a city of regional importance, it transit points in the “Great Silk Road”. is located on north-western shore of Lake

KAZAKHSTAN Balykchy BISHKEK Issyk -Kul BALYKCHY IS A CITY OF WINDS

Kochkor Boras (in the name of the Greek God of northern winds – Boreya) are strong local winds that blow down the mountain slope towards the sea (a large lake) and bring significant severe cold in winter. These winds have different local names and occur in the areas where mountain ranges, often of low Kazarman height, border on the seashore or a large lake. Classic examples are local storm wind Ulan (west wind) and Santash (east, north-east wind) which blow in western (the city of Balykchy) and eastern part of Jalal-Abad the Issyk-Kul basin, respectively. Ulan wind has a form of ground jet of strong wind, in which maximum speed in 90% cases is in the lower UZBEKISTAN limits of 100-300 m, and then it decreases to an average height of 0.74 km, which is its upper limit. The average annual frequency of the Ulan (climatic norm) is about 50-60 cases of boras, and in some years maximum frequency can reach 100-150 boras. In winter, spring, and autumn it blows almost equally CHINA often (25-30% in each season), and less often in summer (about 15%). According to various estimates, the average duration of the Ulan ranges from 7.5 to 20 hours. In most cases (90%) it lasts no more than 2 days, and the maximum duration with possible short-term breaks may be 4-6 days.

TAJIKISTAN

4 5 GENERAL INFORMATION GEOSTRATEGIC POSITION MAIN CHARACTERISTICS

Territory and ship-repair enterprise, a railway station and OF THE ECONOMY 3,791 hectares. a passenger station on the shore of the lake. The Kyrgyz border checkpoints The number of operating enterprises, layout of the city takes into accounts the climatic Kyrgyzstan shares borders with four countries: organizations and institutions (legal entities) by Population features of the area, which are characterized by the form of ownership as of January 1, 2018. As of January 1, 2019, the population made frequent strong west wind “Ulan” with speed −− Kazakhstan. 48,061 people, of them 90.0% are Kyrgyz, 7.3% of 25-28 m/s. Informally, the city of Balykchy is −− China. Number of firms by form of ownership are , 0.6% are , 0.5% are , called a city of winds. 0.5% are Uighurs, 0.4% are and 0.7% are −− Tajikistan. Private State Municipal representatives of other nationalities. Climate −− Uzbekistan. The climate of the city is continental. 34 Location Precipitation in the city barely exceeds 100 mm Checkpoints at each border have specific Balykchy is located in the western part of the a year and falls out mainly in the form of rain. working hours subject to change from time to 41 Issyk-Kul region at the junction of the Issyk-Kul, Snow is rare, the number of days per year with time. As some checkpoints are remote from 121 Chuy and Naryn regions 350 km from the PRC snow cover is about 7-10 days, and the thickness settlements (near the mountainous passes: Kyzyl- border (“Torugart” BCP). The city is 175 km south- of snow cover is 5-8 cm. Water on the shore of Art, Torugart, Irkeshtam) it is recommended to west of Bishkek, which is the capital of the Kyrgyz the lake does not freeze in winter. The soil of the arrange border crossings in advance. Republic, 180 km north of Naryn, the capital of city is stony and humus-deficient. In combination the , and 220 km east of Karakol, the with arid climate it is characterized by extremely The Issyk-Kul region borders on regional center of the Issyk-Kul region. The length low natural biological productivity. region (Republic of Kazakhstan) According to the Balykchy City Department of State Statistics there has been an increase in of the city along Lake Issyk-Kul is 10 km. The The nearest border points are “Kant” and “Ak-Jol” – manufacturing sector over the past 5 years city is about 3.5 km wide. The terrain of the city Time zone 153 km and 182 km, respectively. They are located (see chart). is a plane with a slope from north to south. The UTC/GMT +6:00 h. in the Chuy region and work 24 hours per day. They maximum slope is 5-7%. The southern border of are used for transportation of cargoes. Industrial ouput, in thousand USD the city is limited by the lake (the absolute mark Language The border point “Karkyra” (road) (Tyup-Kegen) is of the water’s edge is 1,607 m), the northern Kyrgyz (state), Russian (official). located in the Tyup region. The distance from the $4000 border from Kungei-Ala-Too range reaches 1,670- city of Balykchy to “Karkyra” BCP is 264 km (4 hours). $3443 $3365 1,680 m. There are moorings, landing stages, lake Currency Working hours are during daylight hours, until $3000 $2786 $2524 $2487 shipping company management, shipbuilding Kyrgyz som (KGS). 18.00. This border point operates seasonally from May to September/October. Cargo transportation $2000 via this point is not carried out. $1000

0 2014 2015 2016 2017 2018

DISTANCE FROM BALYKCHY CITY TO KEY TRADE POINTS:

Direction Distance Travel time by car Balykchy – Almaty (Kazakhstan) 376 km 5 hours Balykchy – Kashgar (China) 550 km 9 hours Balykchy – (Uzbekistan) 802 km 10 hours Balykchy – Bishkek 175 km 2 hours Balykchy – Khorgos (Kazakhstan) 710 km 9 hours Balykchy – Airport “Issyk Kul” in village 48 km 40 min Balykchy – International Airport “Manas” 202 km 3 hours

6 7 COMPETITIVE SECTORS LOGISTICS

The geographic location of the city played a economic cargoes of the Issyk-Kul, Naryn and Railway and connection to the state and than 90 years, it has been transporting cargoes in decisive role in spatial development of the city. other regions. In the western part of the city international network the water area of the lake: during this period its The city is an important transport hub in the there is a passenger station. The occupied area The railway station “Rybachye” of the State ships delivered millions of tons of coal, wheat and northern part of Kyrgyzstan with rail, water and is 0.5 hectares, the passenger capacity of the Enterprise “National Company “Kyrgyz Temir other cargoes to the Issyk-Kul shore residents. road transport. From the city, the highways lead waiting room is 70 people. Jolu” is located in the western part of the city. to Bishkek city, Karakol city - (along the northern The station layout consists of 3 tracks, including: Airport and southern shores of the lake), to Naryn city Balykchy city is also a link of the strategically 1 main track, 4 receiving and departure tracks The nearest airport is “Issyk-Kul” International and further to the “Torugart” border point of important highway “Bishkek-Naryn-Torugart”. and 3 loading-unloading tracks. Airport which is located 40 km to the East the Kyrgyz-Chinese border. Here are located Balykchy is located in the center of this route. in Tamchy village. It is designed for freight trans-shipment points of “Kumtor”, “Kyrgyzaltyn”, The Bishkek-Naryn-Torugart highway is one The station is terminal: it implements the and passenger traffic, classified as 4D class several oil depots, food and coal warehouses, of the main transport corridors of the Kyrgyz making up and breaking up of trains. The (according to ICAO classification). The airport is as well as large electrical substations. Balykchy Republic and a section of the transport corridor specificity of RWS is the implementation of located at an altitude of 1,653.8 m, the length city offers facilities for providing a wide range of of the Central Asian Regional Economic mixed railway-marine operations. The passenger of the runway is 3,800 m, width - 45 m. Type of logistics services for different business activities. Cooperation. The road connects Afghanistan, train runs daily via route “Bishkek - Balykchy” in coverage: armored concrete. The airport has 7 Azerbaijan, China, Georgia, Kazakhstan, summer time, having 3-4 passenger cars. From parking places for aircraft. Road transport Mongolia, Pakistan, Tajikistan, Turkmenistan, 2018, the passenger trip “Tashkent – Balykchy – and Uzbekistan. The city has a number of motor transport Tashkent” is resumed. The airport provides services in summer enterprises: JSC “Avtovneshtrans”, JSC (June-September) for local and international The city also has a temporary storage “Kyrgyztransavto” and JSC “Kyrgyzaltyn” Ports – the nearest sea ports and scheduled flights with four cities: warehouse accredited by the State Customs operating. Motor depots transport various river ports Service of the Kyrgyz Republic. −− Osh (Kyrgyzstan). There are 2 ports in the city of Balykchy. −− Almaty (Kazakhstan). The State Enterprise “Issyk-Kul Shipping company” is one of the oldest enterprises in −− Tashkent (Uzbekistan). the region. Today it is the only enterprise that −− Novosibirsk (Russia). transports cargoes by water. The shipping −− The airport also provides charter flights company has two ports in Balykchy and Karakol year-round. and one landing stage in Kurmenty village. The state enterprise has existed since 1926. For more Website: www.airport.kg/issykkul

Balykchy Karakol BALYKCHY – KAZARMAN – JALAL-ABAD HIGHWAY Issyk -Kul CONSTRUCTION PROJECT BISHKEK

Upon the completion of the construction of the alternative North-South highway (Balykchy — Kazarman — Jalal-Abad), Balykchy City will become one of the main and the largest transit points between the South and North of the country. Naryn Kazarman This road will significantly reduce the travel distance between the cities as the total length of the alternative North-South road is 433 km, and the length of the existing route between Balykchy and Jalal-Abad is 748 km. The road construction is expected to be completed in 2021. Jalal-Abad Osh

8 9 FRUITS, BERRIES & AGRICULTURAL PRODUCTS PROCESSING RENEWABLE ENERGY

The never freezing lake and the high mountain Thus, 150-200 tons of apples per day are Over the last years, the Mayor’s Office of Balykchy industrial area (a Free Economic Zone). terrain resulted in the unique climate conditions exported during season August – December has been actively exploring the possibility of The proposed sites for the Wind Farm are located for horticulture nearby the Issyk-Kul Lake. from the Issyk-Kul region. From January to introduction and utilization of the Renewable far away from the residential area, which is an The competitive advantage of fresh fruits and March, export volumes are reduced to 20-30 Energy Sources (RES) in the city. The Mayor’s Office important factor when choosing a place for berries of the Issyk-Kul region is the climate, tons per day. 100-150 tons of apricots per day is strongly interested in building wind power development of Wind Power Plants. Thereby, WPP where they grow, and a distinctive taste. are exported during season July-September. plants (WPP) on its territory. location mitigates the negative impact on the Goods are transported by suppliers and carriers. population associated with generation of noise or −− 63,592 farmers produce fruits and berries The climate pattern of the city featured by visual impact (please refer to map). Moreover, high in the Issyk-Kul region. periodic strong winds at the speed up to 20- voltage transmission lines pass near the site. There 25 meters per second allows to view such −− The total area of gardens is 8,068 ha. are railway and road connections, which will help weather phenomenon as an additional source to deliver equipment to the Wind Power Plant site. −− The total harvest of fruits and berries is of energy. Hence, such phenomenon creates 48,316 tons on average. ideal conditions for building Wind Power Plants −− An average farmer owns about 0.2 hectares in the city. Analysis of the WPP characteristics in the Issyk-Kul region. obtained from the Hydrometeorology Agency −− The most commonly grown fruits are at the Ministry of Emergencies of the Kyrgyz apricots and apples. Republic shows that Balykchy has a sufficient wind potential with an average long-term speed −− Historically, Russia and Kazakhstan have been the major export markets; 52% of all of 6.7m/s, at an altitude of 50 m. fruits and berries are exported Along with the favorable climate, one more to these countries. argument for development of the WPP in Balykchy −− The main export products are fresh is extensive land plots available in the City’s apples and apricots.

INVESTMENT OPPORTUNITIES List of Substations to which Wind Power Plants OF BALYKCHY CITY (total capacity of 50 MW) could be connected Capacity of Location of Distance to # Substation Note A large investment potential of the region is substation substation wind farm represented by the agricultural processing, as Keramzitnaya Nearby the site designed 1 5 MW 1 km Owned by “Vostokelectro” well as manufacturing of products with higher 35/10 s/s for construction of WPP added value. Today, agricultural processing sector Owned by Issyk-Kul High On the city entrance accounts for as little as two to three percent of the Rybachie-1 Voltage Enterprise of JSC 2 26 MW point from Bishkek (the 2 km Gross Domestic Product. 11/35/10 s/s “National Electric Grid of site of ring road) The main share of products is fresh, which Kyrgyzstan” demonstrates the potential of the following Owned by Issyk-Kul High activities: Ulakhol Ottuk village, Ton rayon, Voltage Enterprise of JSC 3 2.5 MW 20 km −− Production of baby food made from organic 110/10 s/s Issyk-Kul region “National Electric Grid of fruits and berries. Kyrgyzstan” −− Production of jams and preserves. In the northern part Owned by Issyk-Kul High Pionerskaya of the city, crossing Voltage Enterprise of JSC 4 25 MW 7 km −− Organic food production. 110/10 s/s of Pionerskaya and “National Electric Grid of Olimpiiskaya streets Kyrgyzstan” −− Shock freezing of fruits.

10 11 INVESTMENT LOTS FIGURE #1 Designation: Construction of industrial facilities Site area: 12 hectares THE LAND PLOTS AVAILABLE FOR GREENFIELD INVESTMENTS: Owner: Mayor’s Office of Balykchy city Location: J. Amanbaev St. nearby State-owned # Area Purpose* Map enterprise “Kyrgyzkomur Status: Can be leased 1 12 hectares Construction of industrial facilities Figure #1 1. Water supply 2 25 hectares Construction of apartment buildings Figure #2 2. Electricity supply Infrastructure: 3. No sewage facilities 3 1.8 hectares Construction of apartment buildings Figure #2 4. Road 4 7 hectares Construction of industrial facilities Figure #3 5 68 hectares Construction of private houses Figure #4 6 15 hectares Construction of private houses Figure #5 N 7 25 hectares Construction of apartment buildings & Figure #6 commercial property 8 3 hectares Construction of apartment buildings & Figure #6 commercial property S Note: * The purpose can be changed at the request of the investor, if the proposed investments do not violate the accepted norms.

12 13 FIGURE #2 FIGURE #3

Designationv Construction of apartment buildings Type of investments Construction of industrial facilities Site area 1.8 hectares & 25 hectares Site area 7 hectares Owner Mayor’s Office of Balykchy city Owner Mayor’s Office of Balykchy city Location Son-Kol microrayon Location Crossing of Manas St. & J. Amanbaev St. Status Can be leased Status Can be leased 1. Water supply 2. Electricity supply 1. Water supply Infrastructure 3. Sewage facilities 2. Electricity supply 4. Earth road Infrastructure 3. No sewage facilities 4. Road

N N

S S

14 15 FIGURE #4 FIGUTRE #5

Type of Type of investments Construction of private houses investments Construction of private houses Site area 68 hectares Site area 15 hectares Owner Mayor’s Office of Balykchy city Owner Mayor’s Office of Balykchy city Northern and eastern sides of Location Western part of City, along Tynystanov St. Location Tash-Rabat St. Status Can be leased Status Can be leased 1. No water supply 1. Water supply 2. No electricity supply 2. Electricity supply Infrastructure 3. No sewage facilities Infrastructure 3. No sewage facilities 4. Earth road 4. Earth road

N N

S S

16 17 FIGURE #6 FREE ECONOMIC ZONE Type of Construction of apartment buildings and investments commercial property Site area 25 hectares & 3 hectares In 1996, the Free Economic Zone (FEZ) “Karakol” Any investor willing to obtain the status of a FEZ was formed in the territory of Balykchy city. entity should file an application to the General Owner Crossing of J. Amanbaev St. & Ananiev St. Karakol FEZ is located on the Great Silk Road Directorate of the FEZ so that to conclude a that connects East and West. The site of the contract on operation in the FEZ. Northern and eastern sides of Location FEZ with a total area of 500 hectares is located Tash-Rabat St. at the junction of motor road, railway and The application should contain the Status Can be leased waterway with access to the neighboring following information: states - Kazakhstan, China. This FEZ is located 1. No water supply 1) A type of intended activities of the applicant at 180 km from Bishkek and at one kilometer relevant to the type of FEZ. Infrastructure 2. No electricity supply from the nearest railway in Balykchy. 3. No sewage facilities 2) The land area required to perform the 4. Earth road According to the Law of the Kyrgyz Republic “On intended activities of the applicant. Free Economic Zones in the Kyrgyz Republic”, 3) Estimated capital investments, including the free economic zones provide investors with capital investments amount within a year several advantages: from the date of concluding the contract on N operation in the FEZ. −− Economic and foreign economic activity entities are exempted from payment of all The applicant shall attach the following types of taxes, duties and charges while they documents to the application for conclusion of operate in a FEZ. the contract on operation in the FEZ: −− A special legal regime is effective on the −− A copy of the state registration or territory of the FEZ that provides a more re-registration certificate. favorable regulation as compared to the S general regime applied for the −− A copy of the taxpayer registration form. economic activities. −− A copy of constituent documents. −− FEZ entities are covered by the guarantees −− Business plan. of investors’ rights and investments protection as specified in the Kyrgyz Contact details of the General legislation on investment activities. Directorate of FEZ Karakol: −− FEZ entities, which were formed to speed Phone: +996 555 708 009 up the regional development, can have +996 554 704 006 E-mail: [email protected] additional privileges associated with payment of taxes and social security contributions in line with the tax legislation of the Kyrgyz Republic. −− And other advantages.

18 19 LABOR POTENTIAL INFRASTRUCTURE

Number of employed and unemployed persons In the city of Balykchy, there has been an −− Power supply: transforming 529 substations, as of January 1, 2019: increase in average monthly gross wages district 336 electric network, 336 private. over the past 5 years. −− Employed population – 6,545 people. −− Water supply: length of water supply line - 169 km. −− Unemployed – 654 people. Average monthly gross wage over the −− No gas supply. −− Average monthly gross wage for 2018 past 5 years in Balykchy in USD −− Telecommunication: Phone lines used by the remains below the average wage in the 5,611 of population, 119 of which are legal entities. country and one of the lowest in the CA region. $200 $192 −− Internet: 1810 users. $190 $189 $187 Average monthly gross wage $180 Costs of utilities and other services in 2018 in USD $170 $167 $160 $160 Utility Cost (for legal entities) Supplier Kazakhstan $462 $150 “Vostokelectro” JSC 420 Frunze St. $140 Power supply KGS 2.24 per kWh Uzbekisktan $215 2014 2015 2016 2017 2018 +996 3944 4-08-76 www.vostokelectro.kg Tajikistan $140 “Vodokanal” municipal company Educational institutions Water supply KGS 14.00 per 1 cub. m 60 Karalaev St. Secondary schools – 10. Kyrgyzstan +996 3944 3-01-87 $232 Including: −− gymnasium - 2 “Vodokanal” municipal company Balykchy $192 Sewage KGS 4.6 per 1 cub. m 60 Karalaev St. city −− lyceum - 1 +996 3944 3-01-87 $0 $100 $200 $300 $400 $500 Students – 7,982. “Improvement and sanitary KGS 350 per 1 cub. m. for garbage cleaning” municipal company Garbage collection Vocational schools – 1. collection from container 148 Abdrakhmanov St. Students – 202 +996 3944 5-07-19

KGS 1926 is the “Kyrgyztelekom” JSC Colleges – 2. phone line connection fee 4 Kaldybaev St. Students – 589 Telecommunication KGS 120 per month is the +996 3944 5-00-01 subscription fee www.kt.kg (Data for 2018 school year) “Kyrgyztelekom” JSC KGS 4000 (for equipment) is the Internet 4 Kaldybaev St. Internet 3.5 Mb connection cost (fiber-optic line) +996 3944 5-00-01 Subscription fee. KGS 1,100/month www.kt.kg

20 21

TAX AND OTHER PREFERENCES FOR INVESTORS According to Resolution of the Government of the Kyrgyz Republic No. 193 of April 24, 2019, entities that have passed the state registration after January 1, 2019 shall be subject to preferential taxation.

INVESTORS’ SUCCESS LIST of Preferential Types of Industrial Activities Entitled for STORIES referential Taxation Code of # Activities CCEA (*) 1) Logistics center of fruit storage of quality and process safety, and currently it 1 All types of industrial production based on innovative technologies LLC “Oberon” is the sole complex of this kind in Kyrgyzstan. 2 Light and food industry In 2016, a logistics center with a storage facility The country’s mining and industrial enterprises, 13 Textile production with capacity of 2,400 tons was opened. This including such giant as “Kumtor Gold Company”, 14 Clothes production logistics center is equipped with a modern have an excellent opportunity to obtain high- computerized and automated system. The quality repair works for mining equipment units 15 Production of leather, articles of leather, footwear German company “Plattenhardt + Wirth” carried in the shortest possible time without leaving the 10 Food production (excluding tobacco products) country. More than 40 specialists from among out installation works in accordance with 3 Electric energy sector local residents are already working on the basis European standards. The total investment was 35.11 Generation of electricity of the service center, 10 of them have been $4.45 mln US dollars. The credit funds were used 35.12 Transmission of electricity to build the facility and purchase equipment trained at the Wear Service Center (Karaganda, 35.13 Distribution of electricity for industrial refrigerated warehouses – a fruit Kazakhstan). The employees were successfully 35.14 Sale of electricity storage facility with controlled atmosphere. The taught in professional repair of large special production line of frozen fruits and vegetables equipment. In general, the company invested 4 Agricultural products processing was installed, and a dealership network was nearly 600k USD in their training. 10.11 Production (processing and preservation) of meat, except poultry established for the supply of these products to 3) Confectionery shop “Muslim” 10.12 Production (processing and preservation) of poultry all cities of Kyrgyzstan and the EAEC countries It was founded in 2016 on the initiative of 10.20 Processing and preserving of fish, shellfish and molluscs (Kazakhstan, Russia) as well. a private entrepreneur K. Mambetakunov. 10.3 Processing and preserving of fruits and vegetables 2) Borusan Makina Kyrgyzstan The main activity is the production of 10.31 Processing and preserving of potatoes confectionery products with a modern In 2017, a company Borusan Makina Kyrgyzstan 10.39 Other methods of processing and preserving fruits and vegetables technology that corresponds to the HALAL 10.51 Milk processing and cheese production (cheese making) jointly with JSC “Kyrgyzaltyn” opened a service standards. The project budget is 3 mln KGS center for heavy mining machinery and of private investments. The objective is to 5 Assembling Sector equipment. The service center is located on the produce confectionery products without 26 Manufacture of computers, electronic and optical equipment basis of the transport branch JSC “Kyrgyzaltyn”, chemical additives and distribute the products 27 Manufacture of electrical equipment and its total area is more than 5,000 sq.m. The throughout the country, as well as to export 28 Manufacture of machinery and equipment not elsewhere specified service center meets all the highest standards them to the neighboring countries. 29 Car manufacturing 30 Manufacturing of other vehicles 31 Furniture manufacturing 32 Manufacturing of other products 6 Any export-oriented production Note: *CCEA is the State Common Classifier of Economic Activities.

More details and supplementary information Address: Balykchy City, 258 Abdrakhmanov St. about preferences, tax regimes and other non-tax Phone: +996 3944 3-00-28 contributions is available at the website of Email: [email protected] Balykchy City: www.balykchy.kg You can also address to the State Service This information can also be provided by the Division of Balykchy City Economic Development and External Relations Unit of Address: Balykchy City, 252 Abdrakhmanov St. the Mayor’s Office of Balykchy City Phone: +996 3944 3-26-21

22 23 SERVICES FOR INVESTORS DETAILED INFORMATION ON PROVIDED BY THE MAYOR’S OFFICE REGISTRATION OF LEGAL ENTITIES

The procedure for obtaining municipal land 3) The authorized body on its own initiative or List of necessary documents for state State registration of a legal entity is for lease is carried out according to the Model within 3 days from the date of receipt registration of commercial organizations carried out on the following timeframes Provision “On the Procedure and Conditions of the application forwards the appropriate (in the form of LLC, ALC, OJSC, CJSC, etc.) from the moment of filing the for the Reimbursable Granting of Ownership instruction to form the land plot to the −− Registration application pursuant to the completed documentation: Rights or Leases to Land Plots Owned by territorial authority of architecture form approved by the Resolution of the −− Commercial entities – 3 business days. Municipal Property”, approved by the Decree of and construction. Government of the Kyrgyz Republic dated −− Finance and credit organizations (bank, the Government of the Kyrgyz Republic dated The instruction of the authorized body January 28, 2011, # 31. September 23, 2011 No. 571 provides description of investment and micro-finance company, micro-credit −− Original decision approving, inter alia, construction intentions, approximate area of company, micro-credit agency, etc.), non- state registration. commercial organizations – 10 calendar days. 1) Individuals and legal entities willing to obtain the plot and its location. rights to land plots at the auctions apply to 4) In the cases provided for by subparagraph a) −− Copy of passport of a founder (individual). Registration of branch and representative offices the authorized body with an application. of paragraph 11 of this Regulation, and if the −− Copy of certificate of state (re)registration of is carried out by the Ministry of Justice of the Kyrgyz Republic and subdivisions thereof. The application shall indicate: land plot to which the right is granted was a founder (legal entity) – if the founder is a formed before, the reformation of the land local legal entity. −− Information about the applicant More detailed information can be found plot is not required. −− Legalized extract from the state register (information required for his unambiguous at the following link: or other document confirming that the identification, legal entities should 5) The territorial authority of architecture and founder (legal entity) validly exists pursuant minjust.gov.kg/ru/content/1079 additionally indicate whether it is foreign). construction within 5 working days reviews the declared construction intentions on the to its laws of incorporation – if the founder is −− Type of requested right to land plots (right a foreign legal entity. Justice Department of Issyk-Kul region requested land plot for compliance with the Address: 105 Abdrakhmanov St. Karakol City of ownership or right of temporary use). −− Copy of passport of a manager of a legal town-planning documentation and the rules Phone: +996 (3922) 5-06-64 entity to be established. −− Description of investment and construction for land use and development. +996 (3922) 5-23-27 intentions, the area of the plot; in case More information about the regulation can be −− Original power of attorney if a person acts Detailed information on investment climate in the information about a particular land found at the link: through a proxy. the Kyrgyz Republic may be obtained from: plot is missing, the applicant indicates the http://cbd.minjust.gov.kg/act/view/ru- Investment Promotion and Protection Agency acceptable location, according to which the ru/95276 of the Kyrgyz Republic land plot will be selected and formed. Address: 106 Chuy Ave. Bishkek city 2) The authorized body shall issue a Department of Municipal Property Phone: +996 312 62-38-44 confirmation about the acceptance of the of the City of Balykchy Email: [email protected] application to the applicant. Address: 258 Abdrakhmanov St. Balykchy city www.invest.gov.kg Phone: +996 3944 3-00-20

24 25 PERMIT DOCUMENTS FOR CONSTRUCTION LIST OF KEY COMPANIES BY SECTORS

Construction permits are issued by the −− Sanitary, fire prevention, environmental Logistics and storage apples, pears, apricots, peaches and other requirements (depending on functional fruits. All equipment and processes of the territorial authority of Urban Planning −− Logistics center “Oberon” LLC. A fruit storage designation of the facility). enterprise comply with the HACCP standard. and Architecture of the Issyk-Kul Region facility with controlled atmosphere and The production capacity of the enterprise −− Requirements for improvement of the capacity of 2,400 tons enables to store is 20 tons of juice per day. The number of Permit documents for design and construction land plot, organizing parking, and access fruits up to 270 days without loss of quality employees is 20 people. are issued in two stages based on the one-stop- to the facility (depending on functional characteristics. Number of employees is up shop principle. designation of the facility). to 60 people, during sorting this number is Production of building materials more than 300 people. 1) The first stage – issuance of architecture and −− Technical requirements for engineering −− “Kaukar-Tash” JSC. Production of bridge and planning materials – takes 20 business days. network connections. Processing of agricultural products reinforced concrete products. Volume of output is 15,000 m3 of reinforced concrete −− “Issyk-Kul Shiresi” LLC. Processing of Architecture and planning materials for design of 2) The second stage – approval, expert products and road and bridge slabs per agricultural products, output and production a facility contain: examination of design documentation, and month. Number of employees is of products from vegetables and fruits −− Major town planning, architecture, and issuance of permit for construction – up to 50 people. takes 40 business days. – canned food and wines. Natural juices planning requirements for the facility, including volume of output is 1 ton per hour. Number Food industry data about town planning regulations for use of employees is 10 people. and building on the land plot, provided in the −− Individual entrepreneur Mambetakunov, town planning documentation, Land Tenure −− “Yntymak” JSC. Processing of agricultural confectionery shop “Muslim”. Production and Building Rules. products, output and production of products of crackers, cookies, flour confectionery from vegetables and fruits - canned food and products of long-term storage. The main juices. The volume of output is 3 mln cans of confectionery shop is located in the city of natural juices and jelly per year. Number of Balykchy, it provides products to the Issyk- employees is 8 people, and in the season the Kul region, and there are more than 30 number is up to 50 people. points of sales. Number of employees is up to 30 people. −− “ABT-Agro” LLC. Processing of vegetables and fruits. The company produces juices from

Contact information: No inspections of newly established business entities are conducted during the first 3 years Balykchy city department of urban planning of operations. Therefore, it is recommended to and architecture. obtain approval from the inspectorate at the Address: 25 Sultanov St. Balykchy city construction stage to ensure compliance with all Phone: +996 3944 3-26-89 requirements.

More detailed information can be found at link: Contact information: cbd.minjust.gov.kg/act/view/ru-ru/59299 Inter-Regional Department for Cholpon-Ata, The functions of control and supervision in the Balykchy, Issyk-Kul and Ton districts. field of architectural and construction activities Phone: +966 3944 3-93-59 are carried out by the Regional Department of +966 3944 3-93-00 the State Inspectorate for Environmental and Technical Safety under the Government Decision on allocation of municipal land plots of the Kyrgyz Republic. is adopted by the City Council (Kenesh).

26 27 BANK AND NOTARY OFFICES STRATEGIC DOCUMENTS

Banks branches: The “Program for socio - economic unconditional linking to the prospects of development of the city of Balykchy for the development of the industry, transport and other Name Address Phone period 2019-2022” developed in accordance sectors of the economy in the Issyk-Kul region in Demir Kyrgyz International Bank JSC 11 Abdrakhmanov Street +996 3944 7-01-27 with the National Development Strategy of the the period under study. Bai-Tushum Bank CJSC 47 Kulakunov St. +996 3944 5-03-71 Kyrgyz Republic for 2018-2040. Commercial Bank Kyrgyzstan JSC 47 Toktosunov St. +996 312 61-33-33 The development program covers main spheres Optima Bank JSC 41 Toktosunov St. The development program is based on the existing of life of the city of Balykchy such as: values of the population, economic and competitive BTA Bank CJSC 64/1 Toktosunov St. +996 3944 5-09-61 −− Improve living comfort in the city. opportunities of the city. It opens prospects to RSK Bank JSC 86 Kulakunov St. +996 3944 5-07-38 residents, businesses, public authorities, local −− Develop small and medium-sized businesses, Bank of Asia CJSC 130 Komsomol St. +996 3944 5-08-00 governments and potential investors. create conditions for increasing the number of jobs in this sphere. Finca Bank CJSC 140 Abdrakhmanov St. +996 3944 5-10-39 Bank Companion CJSC 214 Amanbaev St. +996 3944 4-03-62 The City Development Program will be −− Increase diversification level of the city implemented by consistent and gradual economy by increasing production in the Dos-Credobank JSC 41 Kurmashev St. +996 3944 5-00-94 improving of the situation in the economy and processing industries and development of social sphere of the city based on rational use the service, mostly in logistics. Notary offices: of available resources and taking into account −− Improve investment climate and growth of the socio-economic potential of the city with investment volume in production and Name Address Phone non-production facilities of the city. State notary office 184a Kulakunov St. +996 3944 3–25–70 “Kokobaeva” Private notaries 21/5 Karalaev St. +996 707–52–52–32 “Musakunov” Private notaries 76 Toktosunov St. +996 550–12–28–27 QUALITY OF LIFE 2) Cultural institutions on the city territory – 12 1) Health care institutions on the −− Cultural center – 1 city territory – 10 −− Library – 5 −− City territorial hospital – 1 ELECTRONIC MUNICIPALITY PROJECT −− Museum – 2 −− Family-medicine center – 1 As regards the development of information −− Creation of the Internet portal of the −− Cinema – 1 technologies in the city, a focus should be paid to Municipal Property Division under −− State sanitary and epidemiological supervision – 1 −− Club – 1 the project of comprehensive automation of the Balykchy Mayor’s Office. −− Groups of interests – 1 Mayor’s Office and municipal services through the −− Creation of a multipurpose center for −− Balykchy City dental clinic – 1 formation and development of an “e-municipality” provision of municipal services. −− Family physicians groups– 2 −− Music school – 1 system, which includes as follows: −− Introduction of the control system over the −− Medical and obstetric station – 4 3) Sports infrastructure −− Development of IT-based services to housing and utilities sectors with the use of −− Number of doctors – 81 −− Sports grounds – 15 improve the quality of interaction between IT technologies (energy accounting, such −− Sports gyms – 8 citizens and the Mayor’s Office. as water and electricity). −− Sports clubs – 15 −− Creation and development of electronic As part of these activities, an electronic register services in the provision of municipal will be created; an electronic map of the city and services (transfer of municipal services an electronic platform on Municipal property into electronic format). will become functional. −− Introduction of the electronic document management system at the Mayor’s Office. Within the framework of the E-municipality −− Technical expansion of the official website of Project, electronic registration system of the city to improve its interactive functions. complaints and business papers received by Balykchy Mayor’s Office will be introduced.

28 29 CONTACT INFORMATION FOR INVESTORS IN BALYKCHY CITY

For inquiries regarding investments in the city please contact: Economic Development and External Relations Unit of Mayor’s Office of Balykchy city Address: 258 Abdrakhmanov St. Balykchy city Phone: +996 3944 3-00-28 Email: [email protected] www.balykchy.kg

Development of Investment profile was supported by the IFC Kyrgyz Dairy Development Project. The project has been funded by the Ministry of Finance of Austria. The views expressed do not necessarily reflect the Austria government’s official policies. The findings, interpretations, views and conclusions expressed herein do not reflect the views of the Executive Directors of the World Bank Group or the governments they represent.

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