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Resolution of the Government of the Kyrgyz Republic on identification of safety measures in the area of veterinary, plant quarantine, epidemiology, sanitary and ecology

In order to expand export opportunities and improve the competitiveness of domestic producers in foreign markets, in 2013 the Ministry of Economy of the Kyrgyz Republic in partnership with the International Trade Centre (ITC) and the German Agency for International Cooperation (GIZ) with the use of the ITC experience and methodology (which focuses on consideration of trade within the wider framework of its development, taking into account the issues of poverty reduction, strengthening the women's capacity, conservation and sustainable development of the environment and other developmental issues) has been developing the national Strategy on Export Promotion.

In 2009, to implement the Plan on Technical Regulations Drafting, the Law of the Kyrgyz Republic "General Technical Regulation on Ensuring Environmental Safety in the Kyrgyz Republic" was adopted (Decree of the GoKR No. 151, dated 8 May 2009). In 2011, the Law of the Kyrgyz Republic "On Specially Protected Natural Sites" was effectuated (by Decree No. 18 of the GoKR, dated 3 May 2011). 

Ecological Safety Law of 8 May 8 2009, No. 151

General technical regulation on environmental safety Law of 1 March 2012, No. 1

A 2011 World Bank report notes that budgetary outlays have been channelled mainly into irrigation and animal health, but have failed to address the root causes of poor service delivery.  It questions the rationale for subsidizing the cost of irrigation, while major system rehabilitation needs and inefficiencies in the management of water resources have continued to receive little attention. The report further notes that in 2007 Kyrgyz veterinary services failed to meet OIE standards in most critical areas, including infrastructure, staffing, education, epidemiological surveillance and diagnosis, and disease control and eradication.

Kyrgyz policy on the use of subsoil; resources is formulated by the Ministry of Economy. Certain aspects require Government approval, including strategies for the development of sites and deposits, and implementing regulations. Implementation is by the State Agency for Geology and Mineral Resources(SAGMR), acting, inter alia, as the authority in charge of licensing and work-plan approval. Discovered deposits must be registered with the State Commission on Mineral Reserves (GKZ), which is responsible for confirming reserve estimates. In addition, the State Inspectorate for Ecological and Technical Safety monitors compliance with industrial safety and environmental regulations, while the State Agency for Environmental Protection and forestry conducts environmental impact evaluations.

Mining operations at Kumtor have also been subject to fines for alleged past environmental damages, in (apparent) contradiction with the terms of the 2009 agreements. These developments, coupled with non-transparent licensing practices (see below), point to a rather uncertain legal framework, which continues to discourage private investment.

Pursuant to a special tax regime negotiated in 2009, the operator of the Kumtor gold mine is subject to a 13% tax on gross revenue, a contribution (1% of gross revenue) to a fund for the development of the district where the mine is located, and a fixed environmental charge.

During the review period, the Kyrgyz Republic remained a net importer of hydrocarbons and a net exporter of electricity (Table 4.2). While it is estimated to have considerable reserves across all energy sources, its hydropower potential clearly stands out as the most significant.