Kyrgyzstan Simplifies Subsoil Use Rules

June 24, 2014

The Kyrgyzstan State Agency for Geology and Mineral Resources will simplify the system for administering subsoil use for local and foreign investors, agency chief Duyshenbek Zilaliyev said.  He said that the steps would ease the ability to obtain rights to subsoil use, simplify the procedures for agreeing and moving forward projects and consequently lower the risk of corruption.

Specifically, the online information system "Nedra" will make it possible to exchange information on subsoil properties over the Internet and a "single window" for sobsoil business issues will make it easier for Kyrgyzstan to attract investment into the sector.

Besides the above, the agency plans to provide full transparency in issuing licences by December 1 and hold at least three open auctions for fields of national magnitude. Officials calculate that this will bring the budget up to 2.25 billion som (about $43 million).

Zilaliyev said the next step would be to establish the conditions for developing new large and mid-sized fields from 2014-2017. Within the framework of these objectives, by October 1, 2014, legislation is to be improved to support control over the rational use of subsoil resources and a mechanism is to be implemented to improve work between the agency and cities and twosn where natural resources are being developed. 

In 2013, Kyrgyzstan earned over 1 billion som (about $20 million) from mineral production.

Source: Oil and Gas Information Agency , 2014.