Industrial parks in Kyrgyzstan permitted to use private land

Kyrgyzstan's Cabinet of Ministers has introduced significant amendments to the regulations governing industrial parks, a move aimed at boosting their operational efficiency and attractiveness to investors. The changes, signed by Prime Minister Adylbek Kasymaliev, allow industrial parks to utilize private land in addition to state and municipal property.

Previously, industrial park territories were restricted to state or municipal ownership. The updated regulations now permit these zones to comprise one or more land plots and real estate, regardless of ownership status. Furthermore, the provision of land is expanded beyond simple lease agreements to include "urgent," or temporary, use.

A key aspect of the reform clarifies the powers of industrial park management companies. They are now prohibited from engaging in production activities within the park, with an exception for generating essential utilities like heat, electricity, and gas for the park's own needs. Crucially, these companies can sell any surplus energy resources to third parties, provided the park's requirements are met first.

The amendments also empower management companies to establish subsidiary and dependent entities. This is intended to facilitate industrial, investment, technological, and other projects that support the park's development, improve conditions for residents, expand production capacities, and commercialize scientific and technical achievements. Management companies can also become founders, shareholders, or participants in other legal entities, including those involving state, private, and international investors, if their activities align with the industrial park's objectives. Property, such as buildings and infrastructure, can be contributed to the charter capital of these entities, and in some cases, land plots may also be included as contributions.