The role of public-private partnership in overcoming poverty in the Kyrgyz Republic

Abstract

Kyrgyzstan has been experiencing an “infrastructure deficit” for many years. It is expressed in the deplorable condition of roads, hospitals, schools, kindergartens, administrative buildings and other infrastructure facilities. One of the indicators of infrastructure quality is the global competitiveness index of countries. Among 133 countries of the world, Kyrgyzstan ranks 112th in terms of the quality of infrastructure in general. That is, it is included in the 30 countries of the world with the worst quality of infrastructure. This once again shows the country’s need for renewal, modernization and construction of new infrastructure facilities. For many years, the country has resorted to borrowing money from international creditors when it was necessary to build or repair existing infrastructure. As a result, about 90% of all Kyrgyzstan’s external loans today are debts for the construction of roads and energy facilities. However, the country can no longer follow this path today. Thus, at the end of 2021, Kyrgyzstan’s public debt amounted to $5 billion 147.22 million, or 60.33% of GDP. The high level of public debt and the recommendation of international institutions to refrain from increasing it led to the search for new instruments to finance new construction and modernization of existing socially important facilities. The mechanism of public-private partnership has become such a tool for the Kyrgyz Republic.