copy the linklink copied!7. Policy and regulatory framework for the transport sector

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This chapter briefly discusses the main regulatory framework dealing with or having an impact on urban public transport in Kyrgyzstan (including energy efficiency, air pollution, or climate change). All the legislative requirements and set-ups presented here – both technical and administrative – are discussed in the context of the extent to which they create demand for green investment in Kyrgyzstan’s public transport sector.

copy the linklink copied!7.1. Regulatory framework affecting urban public transport

The general regulatory framework includes various acts that affect public transport, such as the legal relationships between the transport operators and passengers, and between operators and public administration bodies. Besides technical and road safety regulations, it also includes fiscal (such as customs duties for imported vehicles), social (consumer) and environmental protection (such as emissions or energy efficiency standards).

The Ministry of Transport and Roads is responsible for transport and communications policy, regulation, planning and development.

The Road Safety Secretariat and the Main Road Safety Department of the Kyrgyz Republic collect and analyse road traffic data and co-ordinate accident prevention initiatives, while also contributing to national development strategies in the field of road transport.

7.1.1. The Law on Transport is the primary legal basis for the CPT Programme

The transport system is administered by the Ministry of Transport and Roads of Kyrgyzstan (in 2016, its name was changed from the Ministry of Transport and Communications to reflect its new functions).

In 1998, Law No. 89 (of 8 July) “On transport” was adopted, covering all means of transport in the Kyrgyz Republic. Law No. 121 of 18 July 2016 “On railway transport” and the Air Code of the Kyrgyz Republic No. 281 of 6 August 2015 were adopted separately.

In Bishkek, city transport is regulated by the regulatory document “The rule of the organization of passenger and freight transport traffic to Bishkek” passed by the city council on 8 July 2003. The document defines fundamental regulations for the city’s entire transport system, including:

  • Regulations for organising passenger and freight transport in Bishkek taking into account minimum requirements for passenger safety, health care, safety of vehicles on roads, environmental and consumer protection, and vehicle registration.

  • Responsibilities of the city administration for co-ordinating, managing and monitoring contractual obligations for passenger traffic services. The city administration develops the network of routes and allocates routes among operators on a competitive basis.

  • Determining the operators of trolleybus routes through a competitive system.

  • Measures to ensure that if tariffs do not ensure profitability for public transport operators, subsidies shall be provided from the city budget.

  • Annual testing of the route network according to specific indicators.

Whilst the Law on Transport provides the legal basis for the CPT Programme, the municipal regulations in Bishkek should be modified to provide an incentive to invest in clean transport. For example, the regulations should provide for the possibility of offering investment subsidies to transport providers that switch to less polluting means of transportation.

7.1.2. Regulations for private carriers do not ensure safety

Kyrgyzstan has adopted state regulations for licensing transport activity and services; these include the following laws and regulations:

  • Law No. 195 of 19 October 2013 “On license authorisation system in the Kyrgyz Republic”.

  • Government Order No. 260 of 31 May 2001 “On licensing of separate types of activities”.

  • Law No. 89 of 8 July 1998 “On transport”.

Private individuals can act as private carriers of citizens, provided they have a license/permit from the tax inspection office for their place of residence. No requirements need to be met in order to obtain this license/permit. Any person with a vehicle in use can transport passengers, including over long distances. Therefore, many drivers have insufficient qualifications for ensuring the safe transport of passengers.

Through the licensing mechanism, the state should exercise complete control over this branch, ensuring that the transport legislation of the Kyrgyz Republic is observed and establishing the minimum necessary requirements for the safety and quality of the transport services provided.

However, in practice the system has not resulted in greater safety in automobile transportation or in the quality of the transport services provided. Both local and national officials report road transport safety as a primary concern.

7.1.3. Traffic regulations in the Kyrgyz Republic have not increased road safety

Traffic regulations were approved through Government Resolution No. 421 of 4 August 1999 and entered in force on 1 September 1999. These established traffic rules, the interaction between public transport and other road users, the technical conditions to be adhered to in order for a vehicle to be permitted to operate, as well as the responsibilities for ensuring the safety of all parties involved in transport (GoK, 1999[1]).

However, poor road safety on Kyrgyz roads and the high accident rate led to a policy dialogue on road safety in 2016 involving the Deputy Minister of Health, stakeholders from the government, the police, NGOs and health service providers. A legislative review of the laws on risk factors was also conducted. The dialogue resulted in many initiatives and legislative amendments being proposed (WHO, 2018[2]).

The CPT Programme could serve as a catalyst for increased road safety by increasing the safety of the public transportation fleet.

7.1.4. Regulations for vehicle environmental safety do not meet international standards

The legal framework for state technical inspection is provided for under Law No. 151 of 8 May 2009: “General technical regulation on ensuring environmental safety in the Kyrgyz Republic”.

In 2012, obligatory technical inspection was cancelled by regulation. While it was subsequently restored, the legislation does not contain accurate and effective mechanisms for the state regulation and control of motor transport activity. Furthermore, responsibilities and sanctions for failing to fulfil the requirements are not included in the regulations.

The law does not reflect international environmental safety standards for vehicles. It needs to be reformed, in particular to bring legal, normative and technical considerations in line with modern conditions and international standards – not only for passenger and freight transportation, but also for the environment and climate change.

As a consequence, the rolling stock is not appropriate for ensuring safe or high-quality public and freight transport service. The CPT Programme could kick-start new investment in a public transport fleet that meets environmental safety standards, which in turn could provide the blueprint for improving environmental safety standards in other vehicle fleets.

7.1.5. The law on municipal property should be better enforced

Parking in the city of Bishkek remains a high priority for review and reform because of insufficient spaces available and the methods drivers use to park, which often disturbs the flow of traffic.

On-street parking spaces in the city of Bishkek are on public land belonging to the municipality. They are regulated by Law No. 37 of 15 March 2002 “On municipal property ownership”, and the Land Code of the Kyrgyz Republic No. 45 of 2 June 1999.

According to these laws, the parking spaces are free for users, but private individuals sometimes occupy public land or roads and declare them as a car park and charge for their use in contravention of law.

In 2014 the city management of Bishkek made an attempt to organise fee-based car parks in the city. A project was begun to plan city infrastructure that would allow land to be designated for parking. However, this reform did not succeed due to restrictions in the Land Code. The national parliament did not support this legislative initiative and the project was halted.

The probability of success of the CPT Programme would be increased by introducing fee-based parking and better regulation of parking in Bishkek.

7.1.6. Investment law provides equal treatment of foreign and national investors

Since investment is a major prerequisite for economic development, the Kyrgyz Republic’s investment legislation is quite liberal.1 The Ministry of Economy is the executive body responsible for developing the national investment policy.

Law No. 66 of 27 March 2003 “On investments in the Kyrgyz Republic” sets out the main principles of the national investment policy, which aims to improve the investment climate in the republic and promote local and foreign investment by guaranteeing investors fair legal treatment and protection of their investments.

Under this legislation, foreign investors enjoy the same treatment as national individuals and legal entities.2 The legislation provides broad rights and guarantees to foreign investors, including guarantees of export and repatriation of investment (Art. 5), guarantees of protection against investment expropriation (Art. 6), coverage of losses incurred by investors, guarantees of income use (Art. 7), freedom of monetary transactions (Art. 8), and others.3

Investors investing in top priority economic and social sectors and in areas of the country that meet national development programme (projects) priorities may be granted investment incentives in accordance with Kyrgyz laws (Art. 4). The law, however, does not specify priority sectors, nor does it specify which law or entity specifies them.

Any form of investment can be made in any object or type of business (as long as they are not prohibited under Kyrgyz law), including state-licensed businesses, pursuant to Law No. 195 of 19 October 2013 “On license authorisation system in the Kyrgyz Republic”.

7.1.7. Law on public-private partnerships provides scope for private sector involvement in CPT Programme

Public-private partnerships (PPPs) involve a long-term (up to 50 years) interaction between public and private partners for designing, financing, constructing, rehabilitating and reconstructing assets, as well for managing existing or new assets, including infrastructure.

The PPP legislation in Kyrgyzstan is based on the Constitution of the Kyrgyz Republic and was approved by Law No. 7 of 22 February 2012 “On public-private partnership in the Kyrgyz Republic”.

Under this law, PPP applies to (i.e. is allowed for) infrastructure assets and/or infrastructure services, among others, in the following sectors:

  • generating, transmitting and distributing electric and thermal power

  • processing, storing, transporting, transmitting and distributing oil and natural gas

  • automobile, railway, water, air, and urban electric transport

  • roads and railways (including bridges and tunnels)

  • public utilities and public services.

One of the principles guiding this law is that PPP projects must comply with environmental protection requirements. To assist in the implementation of PPP projects, the public partner may provide or help to provide the following types of government financial support to the private partner and/or project company:

  • providing rights to an infrastructure asset, and to other movable or immovable property

  • assisting in obtaining licenses, permits and approvals

  • providing easements for publicly and/or municipally owned movable or immovable property in order to enable specified uses

  • granting the right to collect tariffs and to generate revenues from other types of activities not directly associated with the implementation of the PPP project

  • setting discounted rental payments for use of the publicly and/or municipally owned property

  • granting exclusive rights to engage in the activity in the framework of the concluded PPP agreement

  • providing other kinds of support on the part of the public partner.

This legislation for public-private partnership provides for private sector involvement in the financing and implementation of the CPT Programme.

7.1.8. Local public administration law gives municipalities responsibility for urban public transport

Law No. 101 of 15 July 2011 “On local self-government” (adapted 2017) establishes and regulates the organisation and functioning of local government at the level of administrative and territorial units of the Kyrgyz Republic. Thus, municipalities are appropriate partners for implementing the CPT Programme.

7.1.9. The basic principles of budgetary law allow for financing the CPT Programme

According to Art. 15 of Law No. 78 of 11 June 1998 “On the basic principles of budgetary law in the Kyrgyz Republic”, the Ministry of Finance can take the decision to grant credits financed by the republican budget to local budgets if local budgets are experiencing financial difficulties. Following this, the Ministry of Finance could also extend financial support to municipalities to implement the CPT Programme.

7.1.10. The financial and economic basis of local government law allows for debt financing of investment programmes

Law No. 215 of 25 September 2003 “On financial and economic basis of local government” enables local governments to issue short-term, medium-term and long-term loans, with the consent of local parliament and the Ministry of Finance and subject to some restrictions.

For example, according to Art. 11, local governments have no right to incur a loan if their total stock of debt, including estimated new debt obligations, exceeds 20% of their revenue. Thus, the creditworthiness of local governments can be calculated and the financial contributions of local governments in the CPT Programme should be clarified before the programme launch.

7.1.11. The licensing law covers urban public transport

Licensing is regulated by Law No. 195 of 19 October 2013 “On license authorisation system in the Kyrgyz Republic”. To carry out foreign trade activity, licenses and permits are issued that meet the requirements of international treaties and acts constituting the law of the Eurasian Economic Union in the field of licensing.

Licenses are only required for activities and operations specified by law and to maintain national security, government monopoly, law and order and to protect the environment, ownership, life and health of citizens. Under Kyrgyz law, licensing is mandatory, among others, for the following activities:

  • the production, transmission, distribution, sale, export and import of electricity (except electricity produced from renewable sources or from other sources for personal use with capacity up to 1 000 kWh)

  • the production, transmission, distribution, sale, export and import of heat (except heat produced from renewable sources or from any sources for personal use)

  • processing of oil and natural gas, except industrial-scale production and the sale of bioethanol produced from vegetable feed

  • the production, transfer, distribution and sale of natural gas

  • urban planning, research and design of residential, public and production buildings and structures (Category I, II and III facilities)

  • passenger transport services by motor vehicle (except taxis)

  • international cargo transportation by truck.

Permits are required among others for the following operations:

  • importing used automobile tyres as waste for recycling purposes

  • the purchase, sale, storage, transportation, carrying, import, and export of special means of transport approved by the Government of the Kyrgyz Republic

  • discharging pollutants into the environment.

Licenses are issued by the competent government authorities (licensors) exercising control over licensed activities. Licenses issued in other countries are recognised as valid in Kyrgyzstan if appropriate international treaties are in place.

Licenses are issued within 30 calendar days of filing an application along with all the required documents. Operators of passenger transport must hold licenses that are valid for five years.

The State Department for the Regulation of Fuel and Energy is responsible for granting energy production licences and setting energy tariffs (UNDP, 2014[1]).

7.1.12. Under the Tax Code clean vehicles could be tax-exempt

Taxation is regulated by the Tax Code of the Kyrgyz Republic No. 230 of 17 October 2008 and other regulatory legal acts. The Ministry of Economy determines tax policy in the country, while the State Tax Service exercises control over compliance with tax laws and the full and timely payment of taxes. The current Tax Code entered into force on 1 January 2009.

The following national taxes are paid under the general tax regime:

  • profit tax

  • income tax

  • value added tax

  • excise tax

  • mining taxes (bonuses and royalties)

  • sales tax.

There are also the following local taxes:

  • land tax

  • property tax.

Value added tax

Value added tax (VAT) is a tax collected and remitted to the government on the value of VAT-taxable supplies in the territory of the Kyrgyz Republic, including taxable import supplies.

Taxable supplies are subject to a standard VAT rate of 12%. Preferential activities and sectors attract a zero VAT rate:4

  • the export of goods, except gold and silver alloy and refined gold and silver

  • the international carriage of passengers, luggage and cargo, except by rail

  • catering services on transit flights and related international carriage, except international carriage by rail

  • services related to the supply of electricity to pump stations supplying irrigation water to fields and drinking water to the population.

Kyrgyz tax legislation lists supplies that are exempt from VAT, including (Article 246):

  • passenger transport in the territory of the Kyrgyz Republic, except by cars with fewer than six passenger seats

  • international passenger, luggage and cargo transport by rail

  • supplies of goods, works and services by private partners and (or) a project company under a public-private partnership agreement subject to approval by the Kyrgyz Government during the period specified in the public-private partnership agreement.

The Ministry of Economy has started considering the green economy in its mission. In practice, a fiscal policy concept exists for 2015-2020 stipulating that a tool for stimulating the green economy will be developed.5 The ministry has also launched a working group on green tax in order to find options to stimulate the green economy.

The tax regime means that VAT exemption could be sought for transport means purchased under the CPT Programme – whether from domestic or foreign suppliers.

7.1.13. Customs regulations could exempt clean buses from import duties

Customs relations in Kyrgyzstan are regulated by the Customs Union legislation (including the Customs Code of the Customs Union); the customs legislation of the Kyrgyz Republic, which is based on the Constitution of the Kyrgyz Republic and consists of Law No. 184 of 31 December 2014 “On customs regulation in the Kyrgyz Republic”; other normative legal acts; and international treaties and other international customs law provisions.6

The State Customs Service is in charge of customs regulation in the Kyrgyz Republic. Customs regulation concerns, among others:

  • release of imported goods for consumption on the domestic market

  • exports

  • customs transit

  • customs warehouses

  • processing within the customs territory

  • processing outside the customs territory

  • processing for internal consumption

  • temporary import (admission)

  • temporary export

  • re-import

  • re-export duty-free trade

  • free customs zone

  • free warehousing

  • special customs procedures (customs procedures specifying the requirements and terms of use and/or disposal of individual categories of goods within the customs territory of the Customs Union or outside it.

This means that, if applicable, foreign buses purchased under the CPT Programme should be exempt from import duties.

7.1.14. Competition law and the need to increase public transport fares

The State Agency for Anti-Monopoly Regulation under the Government of the Kyrgyz Republic is in charge of implementing the general state policy for protecting and developing competition; state regulation and supervising natural and permitted monopolies; and preventing, restricting and restraining monopoly activities and bad faith competition, as set out in Law No. 116 of 22 July 2011 “On competition”.

The functions of the State Agency for Anti-Monopoly Regulation include:

  • assessing the competitive environment in the markets for goods and services (works)

  • protecting the rights of business entities and individuals from monopolistic abuses, unfair competition, and acts and actions (omissions) of state government and local self-government bodies directed at limiting competition

  • issuing opinions on bills for the protection and development of a competitive environment

  • approving prices (tariffs) for services (works)

  • reviewing complaints and claims of individuals and legal entities of any type of ownership asserting non-compliance with antimonopoly, consumer protection and unfair advertising laws.

An increase in transport tariffs required after implementing the CPT Programme will require approval from the State Agency for Anti-Monopoly Regulation.

7.1.15. Insurance laws should create the basis for functioning insurance systems

Activities of insurance companies are regulated by the Civil Code (of the Kyrgyz Republic No. 15 of 8 May 1996) and the following laws of the Kyrgyz Republic:

  • Law No. 209 of 31 July 2015 “On mandatory insurance of premises from fire and natural disasters”

  • Law No. 192 of 24 July 2015 “On obligatory insurance of civil liability of vehicle owners”

  • Law No. 31 of 26 January 2009 “On features of insurance in crop production”

  • Law No. 202 of 15 August 2008 “On obligatory civil liability insurance of organisations operating hazardous production facilities”

  • Law No. 194 of 5 August 2008 “On obligatory civil insurance of employer’s liability for causing harm to life and health of an employee in performing their (official) labor duties”

  • Law No. 189 of 4 August 2008 “On obligatory civil liability insurance of carrier to passengers”

  • Law No. 188 of 4 August 2008 “On obligatory civil liability insurance of of carrier of dangerous goods”

  • Law No. 96 of 23 July 1998 “On organisation of insurance in the Kyrgyz Republic”

  • and other normative legal acts.

In 2015, there were 17 insurance organisations, including two reinsurance organisations, operating in Kyrgyzstan. The insurance products concern more than 84 types of voluntarily insurance and 5 types of mandatory insurance.

These businesses are mainly concentrated in Bishkek (16 companies) with only one company registered in Jalal-Abad.

However, according to the Centre for Development of Renewable and Energy Efficiency, no insurance for vehicles is available in practice. However, an insurance norm should be soon introduced related to damages.

copy the linklink copied!7.2. Regulatory framework for energy efficiency and fuel standards

The State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic is responsible for creating the policy and legislative framework for the energy sector, as well as developing strategies and energy-related legislation.

Several laws in Kyrgyzstan focus on the energy sector, energy efficiency, the use of renewable energy and on energy in buildings. The most important laws are:

  • Law No. 77 of 8 June 1998 “On oil and gas”, which aims to establish a legal framework in line with international standards to ensure economic efficiency, reliability, and security of operations and activities of organisations in the oil and gas industry; the protection of consumers and producers; and the creation of favourable conditions for attracting investment in the oil and gas industry for the intensive increase of production.

  • Law No. 56 of 30 October 1996 “On energy industry”, which makes energy generation subject to licencing. The licence is issued by the State Department for Regulation of Fuel and Energy.

  • Law No. 88 of 7 July 1998 “On energy saving”, which includes a broad variety of instruments covering the whole production chain from mining to energy distribution and consumption. Its secondary legislation, institutional provisions and implementation are very general.

  • Law No. 283 of 31 December 2008 “On renewable energy sources”, which aims to develop and use renewable energy sources, improve energy structure and diversify energy resources. In this context it exempts imported and exported equipment and material for use in renewable energy power plants from custom duties.

  • Law No. 8 of 28 January 1997 “On power industry”.

Some of the laws are outdated and were amended by Government Resolution No. 295 of 15 May 2012. However, there is a significant lack of effective implementation.

copy the linklink copied!7.3. Regulatory framework for environmental protection

The State Agency for Environment Protection and Forestry (SAEPF) is in charge of environmental protection, ecological security and nature management policy, while the State Inspection Office for Environmental and Technical Safety (SIETS) is responsible for state supervision and control of environmental and technical safety.

Kyrgyz legislation supports environmental protection and the rational use of natural resources through the following laws:

  • Law No. 224 of 29 November 2011 “On Technical regulations "On radiation safety”.

  • Law No. 18 of 3 May 2011 “On specially protected natural territories”.

  • Law No. 151 of 8 May 2009 “General technical regulation on ensuring environmental safety in the Kyrgyz Republic”, which concerns the special ecological safety requirements for the protection of atmospheric air, water bodies, species of fauna and flora, soil and natural landscapes, as well as for the disposal of production and consumption waste.

  • Law No. 67 of 22 May 2004 “On bases of technical regulation in the Kyrgyz Republic”.

  • Law No. 53 of 16 June 1999 “On environmental protection”, which concerns the general legal framework for comprehensive environmental protection and for its use, including environmental standard setting, the legal regime of specially protected areas, and rules and procedures.

  • Law No. 54 of 16 June 1999 “On environmental impact assessment”.

  • Law No. 51 of 12 June 1999 “On protection of atmospheric air” (discussed in detail in Section 7.4).

  • Law No. 48 of 9 June 1999 “On biosphere territories in the Kyrgyz Republic”.

In February 2018, Law No. 24 “On introducing amendments to the Code of the Kyrgyz Republic on administrative responsibility” was adopted. This law should strengthen administrative responsibility and help to reduce violations of the rules and requirements concerning hydrometeorological, environmental and pollution observations, collection and processing.

Currently, a concept for the low-carbon development of the Kyrgyz Republic until 2020 is under development (Mokrenko, 2017[4]).

copy the linklink copied!7.4. Regulatory framework for air pollution

Law No. 51 of 12 June 1999 “On protection of atmospheric air”, subsequently amended several times, regulates the management and protection of atmospheric air and the prevention of negative impacts on it. The law designates the arrangements that shall be carried out, including establishing:

  • air quality standards

  • maximum emission limits to the atmosphere

  • regulations on emissions from stationary and non-stationary sources

  • requirements for use of the atmosphere.

The national standards for the quality of atmospheric air in inhabited places in Kyrgyzstan are laid out in a special document.7 This document was approved by the Resolution of the Chief State Health Officer of the Kyrgyz Republic No. 20 on 28 May 2004 and registered in the Ministry of Justice (No. 64-04 of 10 June 2004). This document establishes quality standards for 656 pollutants.

Table 7.1 presents ambient air quality standards for major pollutants associated with the transport sector.

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Table 7.1. Ambient air quality standards (mg/m3)

Pollutant

Maximum permissible concentration

Average daily concentration

Hazard class

Total suspended particulates (TSP)

0.15

0.05

3

Sulphur dioxide (SO2)

0.5

0.05

3

Carbon monoxide (CO)

5

3

4

Nitrogen dioxide (NO2)

0.085

0.04

2

Nitric oxide (NO)

0.4

0.06

3

Tetraethyl lead

0.0001

0.00004

1

Source: (ADB, 2010[3]) KGZ: CAREC Transport Corridor 1 (Bishkek–Torugart Road) Project 3, www.adb.org/sites/default/files/project-document/62464/42399-02-kgz-eia-draft-01.pdf.

copy the linklink copied!7.5. International agreements on climate change

Kyrgyzstan’s intended nationally determined contribution (INDC) sets out the country’s expected contributions to climate change mitigation (GoK, 2015[4]):

  • Long-term GHG emissions target: limit per capita GHG emissions to a maximum of 1.23 tCO2, or 1.58 tCO2 in 2050, to achieve the below 1.5°C or 2°C objective, with a probability of 66% and 50% respectively

  • By 2030 Kyrgyzstan will reduce GHG emissions by between 11.49 and 13.75% below business as usual (BAU) levels.8 With international support, Kyrgyzstan could implement additional mitigation measures to achieve reductions of between 29.00 and 30.89% below BAU in 2030.

  • By 2050 Kyrgyzstan will also reduce GHG emissions by between 12.67 and 15.69% below BAU. With international support it could implement additional mitigation measures to achieve reductions of between 35.06 and 36.75% below BAU in 2050.

  • The time frame is 1 January 2020 – 31 December 2030, and 2050.

  • Base year: not used to determine the targets as they are indicated in per capita GHG emissions, but 2010 is taken for emissions modelling.

Nationally appropriate mitigation actions (NAMAs) refer to a set of policies and actions that countries undertake as part of their commitment to reduce greenhouse gas emissions. These can be various policies aimed at transformational changes within a single sector or across two or more sectors of the economy. Developed countries can support the implementation of NAMAs in developing countries by financing technologies or capacity-building activities.

The UNFCCC website provides a NAMA Register, a publicly accessible platform where all countries can place their NAMAs. This makes it possible to inform the public of the need for financial or other support for the development or implementation of NAMAs.

The UNFCCC Register contains one NAMA project for the Kyrgyz Republic – the “Modernisation of heat supply of residential and public buildings”. Its objective is to support the reorganisation of the local heating sector as part of the institutional reform agenda in Kyrgyzstan. Today, the local heating sector consists of a huge number of small, inefficient boiler houses and a poor distribution system. The project is intended to contribute to institutional reform and the establishment of low-carbon development goals. The project is still under development.9

copy the linklink copied!7.6. Conclusions for the CPT Programme

This analysis of the regulatory and legal basis in the fields of transport and environmental protection and management shows that some work in the right direction has been completed. However, operating and inspection procedures inefficiently used in practice, are sometimes inconsistent and do not significantly involve local governments or representatives of the population.

Kyrgyzstan therefore requires several legislative and policy improvements. In particular, it needs to adopt international environmental quality standards, procedures and norms, including international methods of measuring and calculating environmental pollution, passing more stringent emissions and fuel standards, and ensuring their enforcement.

Beyond these normative acts – and also beyond the scope of this chapter/report – are the skill levels of the personnel involved in the transport sector, who are also an important component of traffic safety. The material and technical resources of driving schools and their training programmes do not meet modern requirements for training qualified specialists in public transport.

Bibliography

[5] ADB (2010), KGZ: CAREC Transport Corridor 1 (Bishkek–Torugart Road) Project 3, Environmental Assessment Report – Draft Environmental Impact Assessment, November 2010, http://www.adb.org/sites/default/files/project-document/62464/42399-02-kgz-eia-draft-01.pdf.

[6] GoK (2015), Intended Nationally Determined Contribution – Submission of the Kyrgyz Republic, Government of Kyrgyzstan, Bishkek, https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Kyrgyzstan/1/Kyrgyzstan%20INDC%20_ENG_%20final.pdf.

[1] GoK (1999), Traffic Regulations of the Kyrgyz Republic, Government of Kyrgyzstan, Bishkek, https://kg.usembassy.gov/wp-content/uploads/sites/190/2016/08/traffic_regulations.pdf.

[4] Mokrenko, A. (2017), “Air pollution in Bishkek exceeds maximum permissible concentration 2-3 times”, News Agency 24.kg, 28 December, https://24.kg/english/72240_Air_pollution_in_Bishkek_exceeds_maximum_permissible_concentration_2-3_times.

[3] UNDP (2014), Renewable Energy Snapshot: Kyrgyzstan, United Nations Development Programme, New York, http://www.eurasia.undp.org/content/dam/rbec/docs/Kyrgyzstan.pdf.

[2] WHO (2018), “Road safety: Kyrgyzstan sees decrease in deaths”, WHO News, 23 January, World Health Organization, Washington, D.C., http://www.euro.who.int/en/countries/kyrgyzstan/news/news/2018/01/road-safety-kyrgyzstan-sees-decrease-in-deaths.

Laws and regulations

(listed by most recent publishing date, in Russian)

Law No. 24 of 19 February 2018 "On introducing amendments to the Code of the Kyrgyz Republic on administrative responsibility", http://cbd.minjust.gov.kg/act/view/ru-ru/111757.

Law No. 121 of 18 July 2016 "On railway transport", http://cbd.minjust.gov.kg/act/view/ru-ru/111398 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=87257).

Air Code of the Kyrgyz Republic No. 281 of 6 August 2015 http://cbd.minjust.gov.kg/act/view/ru-ru/111262 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=79187).

Law No. 209 of 31 July 2015 "On mandatory insurance of premises from the fire and natural disasters", http://cbd.minjust.gov.kg/act/view/ru-ru/111253 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=78371).

Law No. 192 of 24 July 2015 "On obligatory insurance of civil liability of vehicle owners", Erkin Too newspaper No. 72-73 of 7 August 2015, http://cbd.minjust.gov.kg/act/view/ru-ru/111236 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=78374).

Law No. 184 of 31 December 2014 "On customs regulation in the Kyrgyz Republic", Official Journal of Laws of the KR No. 99 of 6 June 2017, http://cbd.minjust.gov.kg/act/view/ru-ru/205436 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=79264).

Law No. 195 of 19 October 2013 "On license authorisation system in the Kyrgyz Republic", Erkin Too newspaper No. 87 of 29 October 2013, http://cbd.minjust.gov.kg/act/view/ru-ru/205058 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=63232).

Government Resolution No. 295 of 15 May 2012 "On draft laws of the Kyrgyz Republic "On introducing amendments and additions to the Law of the Kyrgyz Republic "On energy"", "On introducing amendments and addenda to the Law of the Kyrgyz Republic "On electric power industry"", and "On introducing changes to the Law of the Kyrgyz Republic "On energy saving"", http://cbd.minjust.gov.kg/act/view/ru-ru/93583?cl=ru-ru.

Law No. 7 of 22 February 2012 "On public-private partnership in the Kyrgyz Republic", Erkin Too newspaper No. 17 of 28 February 2012, http://cbd.minjust.gov.kg/act/view/ru-ru/203607 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=50238).

Law No. 224 of 29 November 2011 "On Technical regulations "On radiation safety"", Erkin Too newspaper No. 104 of 6 December 2011, http://cbd.minjust.gov.kg/act/view/ru-ru/203468 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=48390).

Law No. 18 of 3 May 2011 "On specially protected natural territories", Erkin Too newspaper No. 35 of 11 May 2011, http://cbd.minjust.gov.kg/act/view/ru-ru/203262 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=43145).

Law No. 116 of 22 July 2011 "On competition", Erkin Too newspaper No. 60 of 26 July 2011, http://cbd.minjust.gov.kg/act/view/ru-ru/203356 (English version available at: https://wipolex.wipo.int/en/text/343354).

Law No. 101 of 15 July 2011 "On local self-government", Erkin Too newspaper No. 59 of 22 July 2011, http://cbd.minjust.gov.kg/act/view/ru-ru/203102 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=45734).

Law No. 151 of 8 May 2009 "General technical regulation on ensuring environmental safety in the Kyrgyz Republic", http://cbd.minjust.gov.kg/act/view/ru-ru/202693 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=27858).

Law No. 31 of 26 January 2009 "On features of insurance in crop production", Erkin Too newspaper No. 9 of 6 February 2009, http://cbd.minjust.gov.kg/act/view/ru-ru/202550/10?cl=ru-ru (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=26304).

Law No. 283 of 31 December 2008 "On renewable energy sources", Erkin Too newspaper No. 4 of 29 January 2009, http://cbd.minjust.gov.kg/act/view/ru-ru/203243 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=28654).

Tax Code of the Kyrgyz Republic No. 230 of 17 October 2008, Official Journal of Laws of the KR No. 5 of 10 January 2009, http://cbd.minjust.gov.kg/act/view/ru-ru/202445 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=24860).

Law No. 202 of 15 August 2008 "On obligatory civil liability insurance of organisations operating hazardous production facilities", Erkin Too newspaper No. 62 of 19 August 2008, http://cbd.minjust.gov.kg/act/view/ru-ru/202416 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=24057).

Law No. 194 of 5 August 2008 "On obligatory civil insurance of employer’s liability for causing harm to life and health of an employee in performing their (official) labor duties", Erkin Too newspaper No. 59-60 of 12 August 2008, http://cbd.minjust.gov.kg/act/view/ru-ru/202408/10?cl=ru-r (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=23956).

Law No. 189 of 4 August 2008 "On obligatory civil liability insurance of carrier to passengers", Erkin Too newspaper No. 59-60 of 12 August 2008, http://cbd.minjust.gov.kg/act/view/ru-ru/202403 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=23961).

Law No. 188 of 4 August 2008 " On obligatory civil liability insurance of of carrier of dangerous goods", http://cbd.minjust.gov.kg/act/view/ru-ru/202402/10?cl=ru-ru (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=24059).

Resolution of the Chief State Health Officer of the Kyrgyz Republic No. 20 of 28 May 2004 "On approval of sanitary and hygienic regulations", http://cbd.minjust.gov.kg/act/view/ru-ru/31344.

Law No. 67 of 22 May 2004 "On bases of technical regulation in the Kyrgyz Republic", Sheets of Jogorku Kenesh of the KR, 2004, No. 9 (1151), Art. 407, http://cbd.minjust.gov.kg/act/view/ru-ru/1453 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=6744).

Law No. 215 of 25 September 2003 "On financial and economic bases of local government", Erkin Too newspaper No. 74 of 3 October 2003, http://cbd.minjust.gov.kg/act/view/ru-ru/1341/20?cl=ky-kg.

Law No. 66 of 27 March 2003 "On investments in the Kyrgyz Republic", Journal of Laws of the KR No. 76 of 14 June 2004, http://cbd.minjust.gov.kg/act/view/ru-ru/1190 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=3560).

Law No. 37 of 15 March 2002 "On municipal property ownership", Erkin Too newspaper No. 23 of 27 March 2002, http://cbd.minjust.gov.kg/act/view/ru-ru/992. (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=226).

Government Order No. 260 of 31 May 2001 "On licensing of separate types of activities", http://cbd.minjust.gov.kg/act/view/ru-ru/6848 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=496).

Government Resolution No. 421 of 4 August 1999 “On approval of the traffic regulations and basic provisions for the admission of vehicles to the operation and the duties of officials to ensure road safety”, http://cbd.minjust.gov.kg/act/view/ru-ru/33663 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=28000).

Law No. 53 of 16 June 1999 "On environmental protection", Erkin Too newspaper No. 54-55 of 7 July 1999, http://cbd.minjust.gov.kg/act/view/ru-ru/218. (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=293).

Law No. 54 of 16 June 1999 "On environmental impact assessment", http://cbd.minjust.gov.kg/act/view/ru-ru/219 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=299).

Law No. 51 of 12 June 1999 "On protection of atmospheric air", Erkin Too newspaper No. 51 of 25 June 1999, http://cbd.minjust.gov.kg/act/view/ru-ru/216 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=290).

Law No. 48 of 9 June 1999 "On biosphere territories in the Kyrgyz Republic", Erkin Too newspaper No. 51 of 25 June 1999, http://cbd.minjust.gov.kg/act/view/ru-ru/213. (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=70).

Land Code of the Kyrgyz Republic No. 45 of 2 June 1999, http://cbd.minjust.gov.kg/act/view/ru-ru/8 (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=301).

Law No. 96 of 23 July 1998 "On the organisation of insurance in the Kyrgyz Republic", Erkin Too newspaper No. 103-104 of 5 August 1998. http://cbd.minjust.gov.kg/act/view/ru-ru/105 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=256).

Law No. 89 of 8 July 1998 “On transport”, Erkin Too newspaper No. 93-94 of 17 July 1997, http://cbd.minjust.gov.kg/act/view/ky-kg/97/30?cl=ky-kg (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=400).

Law No. 88 of 7 July 1998 "On energy saving", Erkin Too newspaper No. 97-98 of 24 July 1998, http://cbd.minjust.gov.kg/act/view/ru-ru/96/10?cl=ru-ru (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=418).

Law No. 78 of 11 June 1998 "On the basic principles of budgetary law in the Kyrgyz Republic", Erkin Too newspaper No. 79-80 of 24 June 1998, http://cbd.minjust.gov.kg/act/view/ru-ru/86.

Law No. 77 of 8 June 1998 "On oil and gas", Erkin Too newspaper No. 77-78 of 19 June 1998, http://cbd.minjust.gov.kg/act/view/ru-ru/85/10?cl=ru-ru (unofficial translation available at: http://cis-legislation.com/document.fwx?rgn=361).

Law No. 8 of 28 January 1997 "On power industry", Erkin Too newspaper No. 8 of 12 February 1997, http://cbd.minjust.gov.kg/act/view/ru-ru/508/30?cl=ru- (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=411).

Law No. 56 of 30 October 1996 "On energy industry", Regulations of the KR, 1996, No. XI; http://cbd.minjust.gov.kg/act/view/ru-ru/663/10?cl=ky-kg (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=413).

Civil Code of the Kyrgyz Republic No. 15 of 8 May 1996, Sheets of Jogorku Kenesh of the KR, 1996, No. 6, Art. 80, http://cbd.minjust.gov.kg/act/view/ru-ru/4 (unofficial translation available at: https://cis-legislation.com/document.fwx?rgn=51).

Notes

← 1. See IPPA’s investor’s guide on investment climate at: https://invest.gov.kg/investors-guide/investment-climate.

← 2. According to Article 4 of Law No. 66 of 27 March 2003 “On investments in the Kyrgyz Republic”, foreign investors are subject to the same legal regime as national entities.

← 3. Law No. 66 of 27 March 2003 “on investments in the Kyrgyz Republic”.

← 4. This means that VAT on inputs can be reclaimed. In contrast, for tax exempt goods, VAT cannot be recovered.

← 5. Personal communication.

← 6. See IPPA’s investor’s guide on customs regulations at: https://invest.gov.kg/investors-guide/customs-regulations.

← 7. “Hygienic standards of GN 2.1.6.1338-03: The threshold limit values (TLVs) of pollutants in atmospheric air of inhabited places.”

← 8. In the absence of any mitigation activities.

← 9. See NAMA database: www.nama-database.org/index.php/Kyrgyzstan.

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7. Policy and regulatory framework for the transport sector