During the discussion, Ponomarev raised the issue of Article 10 of the Law of the Kyrgyz Republic No. 150, adopted on July 18, 2025, concerning the implementation of the new Land Code.
According to him, the problem is related to the overall instability of business regulations in the country. Investors, both local and foreign, expect stable conditions for at least five years.
“From 2010 to 2015 and later, land plots were leased to construction companies for 49 years for the construction of multi-story buildings. At that time, there was a moratorium on the privatization of such plots. Most of them were empty territories without infrastructure. Construction companies invested funds in laying asphalt, water supply, sewage, electricity, and gas — these are significant costs. The main idea of the business project was that with a 49-year lease, the purchase of land was not included in the cost price. Unfortunately, some companies ceased operations, merely collecting rent and transferring it to the municipality,” he noted.
He also added that later amendments were made to the Land Code, according to which Article 10 requires the purchase of such land plots, and the methodology for purchasing should take into account the market value of the land from the moment the facilities are put into operation.
“This caused a problem: the lands were obtained by companies in 2010–2012, while the facilities were commissioned in 2019–2024 — during this time, the value of the land significantly increased. For example, one company invested $600,000 just in the Water Supply and Sewerage Company, not counting asphalt, lighting, gas, and other expenses. The business considers this unfair and is ready to buy the land, but the moment of transferring the plot for lease should be taken into account, not the moment of commissioning. This applies only to previously issued plots and does not extend to new projects,” he added.
Ponomarev reported that the president listened carefully to the arguments of both sides — the business and representatives of local authorities — and instructed to create a working group by February 1, 2026, to develop a solution and subsequent report to him.
He also noted that the business community proposed to develop a methodology for purchasing that takes into account the moment of transferring the land for lease.
“These are not requirements for new projects, but a solution only for those companies that faced this situation due to the existing moratorium,” he emphasized.
In addition, Sergey Ponomarev voiced the request of the business community to return the Investment Council under the leadership of the president for regular meetings and discussions of current issues at the level of the head of state.
