Bakhyt Sultanov: About the creation of industrial hubs

Source https://www.facebook.com/bakhyt.sultanov 

Important news!

We are starting to implement joint border industrial trade and logistics complexes with Kyrgyzstan. Today, my colleague – Deputy Prime Minister-Minister of Economy and Finance of the Kyrgyz Republic Akylbek Zhaparov and I signed a concept for the creation and operation of complexes in the presence of the heads of government of our states.

The extent to which our two countries are interested in industrial cooperation can be judged by the speed of making a decision on the start of the project. The idea appeared and was announced by the presidents of our countries only in April of this year. The transition from an idea to practical implementation in less than 5 months is very fast for such a large – scale interstate project.

Now for the details.

We propose to localize the hubs on the border section near the Karasu checkpoint. There is both territory and infrastructure there. This is one of the most "popular" transit checkpoints for goods from Kyrgyzstan through Kazakhstan to the north to Russia, Europe and China. The crossing is located on the route of the international route "Almaty-Bishkek" and the highway joins the transport economic corridor West-East (Western Europe – Western China).

Our immediate plans are to expand the capacity of Karasu to meet current needs.

The main idea will be implemented at the site of industrial hubs – industrial cooperation projects will be launched. Moreover, we are talking about not just making Kazakh-Kyrgyz consumer goods, but also attracting foreign capital and technologies to the territory of the ITLK. This will give us the opportunity to integrate into high-tech production chains, and thus jointly enter the markets of third countries.

I am sure that investors will be interested in this. Firstly, because the most favorable conditions for doing business will be created at ITLK. And secondly, because our region is rich in raw materials, human capital and the required infrastructure.

And more. Industrial hubs will become part of the commodity distribution system of Eurasia, in which the Kyrgyz Republic is actively planning to participate, and will be a point of attraction for farm products. Moreover, both as a place of accumulation and strengthening of batches with subsequent export, and as a platform for processing and releasing finished products of the food industry.

In general, the first step towards the practical implementation of industrial cooperation with neighbors has been made. Along with the approval of the ITLC location, we are also starting to work on financial issues, including the possibility of preferential lending for the production of goods on the territory of the hubs.