During the meeting, the issue related to item 10 of the Law of the Kyrgyz Republic No. 150 dated July 18, 2025, "On the Implementation of the Land Code of the Kyrgyz Republic" was discussed.
According to Ponomarev, the current problem arose due to the instability of business regulations in the country. Investors, whether local, foreign, or potential, need the rules to remain unchanged for at least five years.
“From 2010 to 2015 and in subsequent years, construction companies were granted land plots for 49 years for the construction of multi-story buildings. At that time, there was a moratorium on the privatization of such plots. Most of them were abandoned and lacked the necessary infrastructure. Construction firms were engaged in laying asphalt, water supply, sewage, and electricity, which required significant financial investments. The business model assumed that with a 49-year lease, the purchase of land was not included in the cost price. Unfortunately, some companies ceased their activities, focusing only on receiving rent, which they transferred to municipal ownership,” he noted.
Then amendments were made to the Land Code, according to which Article 10 stipulates a requirement for the purchase of these land plots, and the methodology for their valuation must take into account the land value from the moment the buildings are put into operation.
“This caused a problem: companies received land in 2010-2012, but began operating the facilities in 2019-2024, resulting in a significant increase in land value. For example, one company spent $600,000 on the Water Supply and Sewerage Company, not counting expenses for asphalt, lighting, and other costs. The business considers this unfair and is ready to purchase the land, but from the moment of receiving the plot on lease, not from the moment of commissioning. This only concerns previously issued plots and does not affect new projects,” he added.
According to Ponomarev, the president listened to the opinions of all parties—both business and local authorities—and instructed to create a working group by February 1, 2026, to develop a solution and provide a report.
The business community proposed to develop a buyout methodology taking into account the moment the land is leased.
“This is not a requirement for new projects, but a solution for those companies that found themselves in a difficult situation due to the existing moratorium,” he concluded.
In addition, Sergey Ponomarev noted the appeal of the business community to the president to restore the Investment Council under his leadership for regular meetings and discussions of relevant issues at the state level.
