Former Prime Minister Proposes Involving Citizens in Financing Railway Construction
According to his estimates, the total budget for this large-scale infrastructure project is $4.7 billion, of which 24.5 percent is allocated to Kyrgyzstan. The ex-prime minister suggests that the state distribute 30 percent of its share among the citizens. With an even distribution, the basic package of shares would cost the adult population approximately 4,000 to 5,000 soms. Kulov also noted that with a payment plan spread over several years, the monthly contributions would be only 60 to 90 soms, which is an affordable amount for most citizens, considering that the total savings of the population in Kyrgyzstan exceed 300 billion soms.
According to Kulov, the implementation of this plan would allow the country to reduce its dependence on external loans and strengthen its economic sovereignty. Instead of paying interest to foreign creditors, Kyrgyzstan would be able to distribute dividends among its citizens. It is also expected that the return on investments in the project could range from 15 to 25 percent per annum once the railway reaches strategic transit volumes.
To protect investments from speculation, Kulov proposes to make the shares registered, limit their free circulation, and allow only the state to buy them back, while still allowing the transfer of shares by inheritance.
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