Business proposes to change the land buyout methodology to avoid the bankruptcy of construction companies. Amendments to the law are being discussed, - Sergey Ponomaryov

Арестова Татьяна Economy
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On January 30, 2026, a meeting was held in Bishkek organized at the request of President Sadyr Japarov, where the business community gathered representatives from government agencies. This was reported by Sergey Ponomarev, president of the Association of Markets, Trade Enterprises, and Services, in an interview with Tazabek.
The event was attended by Bishkek Mayor Aibek Junushaliev, Minister of Construction Nurdin Oruntaev, and other municipal representatives.
The main topics of discussion concerned resolving issues raised at the meeting with the president on January 23. The focus was on the methodology for purchasing land plots in accordance with Article 10 of the KR Law No. 150, adopted on July 18, 2025, which pertains to the implementation of the new Land Code.

Article 10

1. Land plots of municipal ownership, provided to legal entities and individuals for the construction of apartment buildings before the new Land Code comes into force, must be purchased by these entities within five years from the date the building is put into operation. Subsequently, the rights to the land plot are transferred to the joint ownership of the residents. The purchase is carried out according to the methodology approved by the city council, taking into account the date of the building's commissioning.

2. To ensure compliance with the obligations for purchasing the land plot, legal entities and individuals must provide collateral to local self-government bodies. The amount will be proportional to the value of the land plot and may be reduced depending on the amount of purchase payments made annually, according to the conditions established by the city council.

Sergey Ponomarev noted that previously, land plots were leased to construction companies for 49 years amid a moratorium on privatization. Builders invested significant funds in infrastructure development (roads, water supply, sewage, electricity, gas) on vacant plots. However, the cost of land was not taken into account in the calculations of project costs.
Subsequently, a law was adopted requiring the purchase of land according to a methodology that assesses the value from the moment buildings are put into operation. This created difficulties for companies that received plots in 2010-2012 but only commissioned their projects in 2019-2024, when land prices had significantly increased. Such requirements could risk bankrupting companies, especially those that had completed their main activities.
The business community proposed to start the countdown for purchasing from the moment the plots are leased, rather than from the moment of commissioning. The president listened to the business arguments, and the mayor supported this position, leading to a decision to amend the law.
“Today, the business community sent a letter to the Jogorku Kenesh with proposed amendments. At the same time, the methodology is being coordinated at the municipal level and with the Bishkek city council,” he added.
These changes will help address three key issues:

- Social — many shareholders cannot register apartments in their names due to the lack of certificates from the mayor's office;

- Budgetary — after registration, citizens will be able to start paying property tax;

- Sectoral — the construction industry will be able to continue its activities and contribute to GDP growth in 2026 and subsequent years.
Thus, the solution to the problem is seen in amending the law and adopting a fair purchase methodology as a regulatory act of the Bishkek city council.

Background:

On January 23, President of the KR Sadyr Japarov held a meeting with leaders of major construction companies, as well as representatives of government agencies and the Bishkek mayor's office. About 30 representatives from the construction sector and business associations participated. Among the issues discussed were the purchase of leased plots, new gasification rules, tariffs for Bishkekvodokanal services, and mechanisms for revoking construction permits.
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