Kyrgyzstan is plunging into darkness. In hot summers, the country’s capital, Bishkek, suffers from rolling blackouts that paralyze the life of the city: cellular communications are lost, water supply is stopped, shops are closed. This problem, which has long become chronic for the entire republic, affects everyone — from ordinary citizens having dinner by lantern light to deputies in the de-energized parliament hall.
The authorities see a way out in the development of «green» energy, actively stimulating the construction of small hydroelectric power plants (mini-hydroelectric power plants). President Sadyr Zhaparov called it a disgrace for a country rich in mountain rivers to purchase electricity from its neighbors. An ambitious program has been proposed as a solution: the state is ready to support investors, creating unprecedentedly favorable conditions for them. The procedure for allocating land has been simplified, VAT on the import of equipment has been abolished, and licensing has been completely abolished. But the main incentive is guaranteed sales. The state has pledged to buy electricity from the owners of small hydroelectric power stations at a price of 4.42 soms per kilowatt-hour — a tariff that is several times higher than the cost at which energy is sold to the population and industry.
A journalistic investigation conducted by «Kloop» and «Temirov Live» revealed who exactly benefited from this government generosity. As it turned out, key positions in the new and extremely profitable business were occupied by people closely associated with the current government. The central figure in this energy project was Azat Burkanov — son of Arzybek Burkanov, a close friend of President Sadyr Zhaparov. He has already built two mini-hydroelectric power stations and is building at least two more, taking advantage of all government benefits.
The economics of this business are amazing in their profitability. The payback period for investments, according to experts, is only 6–8 years. After this, the cost of electricity production at such stations drops to 60 tyiyns or a maximum of 1 som per kilowatt. At the same time, the state continues to buy it for almost 4.5 soms. The difference between the purchase price from «their» investors and the sale price for citizens is covered by the country’s budget, that is, the pockets of taxpayers. Last year alone, almost 9 billion soms were allocated from the treasury to cover the energy deficit.
As indicated in the investigation, Azat Burkanov’s partner in this business is Nursultan Chiltenov, who is called the nephew of former President Askar Akayev and the matchmaker of Sadyr Zhaparov himself. Thus, the highly profitable energy sector is turning into a kind of family contract. This business empire, which grew under the current president, includes not only small hydroelectric power stations, but also the gambling business, which was legalized when Zhaparov came to power, as well as factories, markets and health centers that came under the control of the head of state’s entourage after pressure on them former owners.
Despite loud statements about ensuring energy independence, investigative journalists still have questions. The Minister of Energy of Kyrgyzstan promises that in three years small hydroelectric power stations will cover up to 80% of the deficit, but the authorities are already sharing plans to export this energy to China. At the same time, energy-intensive mining farms operate in the country, consuming electricity in the volume of a small city. Whether Kyrgyzstanis will stop sitting without electricity or whether government subsidies will become only a source of enrichment for a narrow circle of people close to the authorities is a question that remains open.
