**REGIONAL CORNER: CHUI OBLAST, Kyrgyzstan**

 

By Irina Mukambaeva

 

The Chui oblast is located in the northern part of the KyrgyzRepublic, bordering on Kazakhstan, and has a population of about 765,000. Theregion, the most economically developed in Kyrgyzstan, occupies a favorablegeographic position and has an extensive communications network and highlydeveloped industry. Chui oblast is also a key transportation hub for Kyrgyzstangiven the concentration of major railway and highway routes and the internationalairport outside of Bishkek. In December 1999, renovation and upgrading of theBishkek airport—including modernization of the runway, navigation equipment,airport terminal, and other facilities—will be completed. German constructionfirm **Hochtief** is the generalcontractor for the project and U.S. consulting company firm **CH2MHill** is the project manager. 

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Agricultural output accounts for 64.2 percent of the Chuioblast’s GDP, and the industrial share is 35.8 percent. Grain, sugar beet,vegetables, potatoes, milk and meat are the main agricultural products. Majorindustries are food processing, light and construction material industries,nonferrous metallurgy, and industrial engineering (machine-building). Majorenterprises in the oblast include the Kara-Balta mining complex (nonferrousmetals), the Kant cement and slate complex (67 percent of which was recentlypurchased by a Luxembourg company through a privatization tender), Ainekcompany (glass sheet), the Kitlap company (noodles), the Kyrgyz Chemical-MetallurgicalPlant (rare-earth metals), Kasiet company (wool processing), and the Tokmakcanning plant. 

 

Examples of joint ventures with foreign partners operating inthe oblast are sugar and ethylene spirit production (U.K.), noodles (China),and gasoline**and diesel fuel (U.S.).U.S. companies currently operating in Kyrgyzstan include **Newmont Mining**, **Caterpillar**(miningequipment and power generators), **Comsat**(Bethesda,MD), **Motorola** (communications), **Coca-Cola**, and **Procter & Gamble** (consumer goods). **

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The Bishkek Free Economic Zone (FEZ) is located in the Chuivalley, near Bishkek. Having attracted foreign investment worth $4.1 million,the FEZ is home to 416 companies: 325 enterprises with foreign investment, 152foreign, and 29 local enterprises. The most prominent investments in theBishkek FEZ are the **Plaskap-BishkekPlant** (Turkish plastic bottle and cap maker), **Corona Ltd.** (Kyrgyz-Russian JV, production and bottling drinkingwater), **Volare**(New York, NY,apparel), **Eridan-FEZ**(Kyrgyz-Russian-Irish JV, windows and doors), and **Full-Mobile** (Kyrgyz-Italian JV, furniture). The major benefits fora company registered in the FEZ include exemption from several kinds of taxesand duties and exemptions from quotas and licensing for the export of goodsmanufactured in the FEZ.**

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The Chui oblast has trade ties with 49 countries, and itsbalance of trade is positive. The major exports are nonferrous and rare-earthmetals, construction materials, yarn, and agricultural products. The mainexport markets are Germany, Kazakhstan, Uzbekistan, France, and Russia. Themajor imports are petroleum products, coal, and food products. 

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The most promising investment opportunities for U.S.companies are in the extraction of gold and rare-earth metals, nonferrousmetallurgy, hydropower, agriculture, food processing and packaging industry,tourism, and electronics. 

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*Formore information on the Chui region, contact the Chui Oblast Administration,Department on International Cooperation and Trade, Torogul Bekov, DepartmentHead, at tel: +996(312) 22-35-75, 22-39-75 or fax: +996(312) 22-54-93. Forinformation on the Bishkek FEZ, contact Mr. Emil Ibraimov, Director General,Bishkek Free Economic Zone, at tel:+ 996 (312) 21-17-22 or fax: +996 (312)62-01-13.*

 

*IrinaMukambaeva is the **BISNIS**representativein Bishkek.*

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