Investments to the Kyrgyz Republic. General information on the initiative to build an alternative tunnel along the Bishkek-Osh highway at the Too-Ashuu pass

General information on the initiative to build an alternative tunnel along the Bishkek-Osh highway at the Too-Ashuu pass

A tunnel named by K. Kolbaev is located on the 129th kilometer of the road, built-in 1962. The reconstruction of the tunnel was carried out in 2000. The tunnel has a length of 2500 m and is located at an altitude of 3200 m above the level of sea. This tunnel is the only route for road transport links between the northern and southern regions of the country. The condition of the tunnel is assessed as satisfactory, but today it requires periodically repair work. In this regard, it becomes necessary to build a new and more technologically advanced tunnel.

The construction of an alternative tunnel is an initiative project in which the investor decides on the conditions for the construction and operation of the tunnel. Approximate coordinates for the construction of the tunnel: 113-144 km of the Bishkek-Osh highway. Preliminarily, the project of an alternative tunnel originates from the village of Sosnovka and ends in the Suusamyr valley of the Zhayil region, the Chui region.

The project cost is estimated from 170 to 250 million US dollars, depending on the length and width of the tunnel. The average cost of a tunnel is estimated at USD 10 to 35 million per kilometer of the tunnel.

 

The Kyrgyz Republic Government’s conditions and criteria for implementing the initiative to build an alternative tunnel on the Bislikek-Osh highway at the the “Too-Ashnu” pass

The government of the Kyrgyz Republic, in order to implement the initiative on the construction of an alternative tunnel on the Bishkek-Osh highway at the “Too- Ashuu” pass, based on the analysis and calculations made, intends to attract an investor-company, according to the following conditions and criteria

 

  1. The investor is ready for the differentiated splitting of income in the state benefits from the established fare for passage through an alternative tunnel on the following grid

5 years

10 years

1 15 years

20 years

25 years

30 years

3%

4%

1 7 %

10%

18%

60%

  1. The investor is ready to pay to the state from the date of commissioning with a 5-year increment up to 30 years, according to the above interest rates in paragraph 1, with the shared payment reaching 60% at the end of the 30th year of operation
  2. After the end of the 30-year period, it is necessary to fully transfer the object to the balance of the state, with the right of further trust management by the investor, for Commission payments
  3. Full financing of feasibility studies and geological exploration is implemented by the investor without the participation of the state
  4. The investor undertakes to provide a clear schedule for the construction of the tunnel
  5. In case of unprofitability of the project or other force majeure circumstances, the investor undertakes not to submit claims to the government of the Kyrgyz Republic
  6. The investor undertakes to conduct its activities in accordance with the legislation of the Kyrgyz Republic
  7. The investor is ready to place the amount set by the government of the Kyrgyz Republic on deposit in a Bank as a guarantee of fulfillment of obligations under the investment agreement

At the same time

  1. The government of the Kyrgyz Republic guarantees compliance with all obligations, except for excluding financial risks and other risks not caused by the state
  2. The government of the Kyrgyz Republic does not assume responsibility in the event of financial losses and other risks arising from the development of the above-mentioned measures by the investor and documentation
  3. In case of default on the investor's part, the government of the Kyrgyz Republic has the right to terminate the agreement unilaterally. Link to file