In Kyrgyzstan, industrial zones will be created: how the new sites will operate

Ирина Орлонская Politics
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A draft law "On Industrial Zones" has been submitted for public discussion, which proposes the creation of specialized territories for production activities, infrastructure improvement, and investment attraction.

According to this document, the decision to establish an industrial zone will be made by the government based on the proposals of the initiator and the conclusions of the coordinating council. The proposal must justify the necessity of the project, describe the characteristics of the land plot, indicate infrastructure needs, funding sources, and potential residents.
Industrial zones can be located both within and outside cities. It is important that the land plots are free from encumbrances, not involved in legal disputes, and have access to transport infrastructure. A mandatory condition is the availability of connections to electricity, water supply, sewage, and the internet.
Both legal entities and individual entrepreneurs registered in Kyrgyzstan, including foreign companies, will be able to become residents of industrial zones. To obtain resident status, an application must be submitted to the directorate, along with a business plan, investment information, and proof of financial resources.

The directorate of the industrial zone will make the decision to grant resident status and will enter into an agreement with the resident, which will specify the types of activities, obligations to create jobs, the volume of investments, and the conditions for using the infrastructure.
Land plots within the industrial zone will be provided to residents on a temporary use basis — for a period of 1 year to 49 years without transfer to private ownership. There will also be a prohibition on subleasing the plots until construction is completed.
Residents must use the land exclusively for its intended purpose, adhere to construction deadlines, and implement environmentally safe technologies. In case of non-use of the plot or violation of the terms of the agreement, the right to use may be revoked without compensation for expenses.

The creation of industrial zones will be financed through budgetary funds, investments from residents, and public-private partnership mechanisms. The state commits to bringing infrastructure to the boundaries of the industrial zone, while internal facilities will be constructed at the expense of investors.

The management of the industrial zone will be carried out by the directorate, which will be responsible for infrastructure development, attracting investors, connecting to engineering networks, maintaining a registry of residents, and interacting with government bodies.

The draft law also includes measures of state support, such as informational and consulting assistance, as well as the possibility of receiving subsidies and tax benefits.

If the law is adopted, it will come into force 15 days after its official publication.
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