Kyrgyz PM Wants to Reduce Electricity Exports to Kazakhstan, Uzbekistan

Kyrgyz Prime Minister Igor Chudinov has said that his country should cut down the export of electricity to Kazakhstan and Kyrgyzstan this year due to a shortage of water in the country’s major Toktogul reservoir. In an interview with the state-owned Kabar news agency, Chudinov said that electricity exports had been reduced from 2.2bn kWh to 400m kWh this year. “We asked our neighbours before and we have requested them several times this year to draw up a set of measures to import electricity from them in order to save water in the Toktogul reservoir, but we have not reached an understanding yet,” Chudinov said. He dismissed speculations that Kyrgyzstan was in an economic crisis. He said that the country was currently in a difficult situation due to the general situation in the world and because of “two domestic occurrences – overt profiteering, when some want to profit from common misfortune by artificially raising prices, and inefficient use of the country’s agricultural potential”. The following is the text of the interview posted on the Kabar news agency website on 14 August; subheadings inserted editorially:

Kabar, 14 August: Prime Minister Igor Vitalyevich Chudinov answered a Kabar news agency correspondent’s questions today.

Economic situation

[Correspondent] There is a lot of speculation in both the foreign and the Kyrgyz press about a difficult economic situation in our country. Many are even claiming that the republic is heading for ruin.

[Chudinov] There are many people who wish to present the economic situation in Kyrgyzstan as a crisis. There is, however, no crisis in our country. We are trying to prevent it. It is a different matter that we are in a difficult situation. We have simply been affected by it. This is partially connected with the general situation in the world and in neighbouring countries that prices are rising everywhere, and 40 per cent of the products consumed in Kyrgyzstan are imported. The domestic reasons for the current difficult situation are connected with two occurrences. They are overt profiteering, when some want to profit from common misfortune by artificially raising prices, and inefficient use of the country’s agricultural potential. The state is still forced to subsidize this sector. We have provided aid worth 700m soms [over 20m dollars] to agriculture this year alone. However, the situation is not that bad as some people want. Our country has harvested cereals from 63 per cent of land and received 630,000 tonnes of grain. So, we are to harvest 800,000 tonnes [of grain] this year, which has been planned. Nevertheless, I should admit that we have achieved this chiefly by increasing the areas under cereals. In other words, the agriculture is developing extensively. It is now necessary to develop seed- growing and livestock breeding farms, to increase labour productivity and to consolidate farms. Work is under way in this direction. An agricultural production corporation has been set up, which will become a serious player in the country’s economy, and a leasing company will be set up and then farm machinery will become affordable to farmers. The agricultural production corporation will give a stimulus to the development of agriculture. There are many things that should be developed. Maize and pulses are quite promising in Kyrgyzstan’s conditions. The food processing industry should also be improved. We, however, have resolved the main problem: we have decided to prevent a shortage of foodstuffs. If there was a shortage there would have really been a crisis. We have succeeded in resolving this problem.

Water

[Correspondent] There are many unresolved questions in our country (in the [Central Asian] region as a whole) in terms of using water. Some are even accusing Kyrgyzstan of egotism and claiming that it is allegedly not supplying its neighbours with water which is given by God.

[Chudinov] 2008, was a very dry year. The River Naryn and its tributaries are currently carrying only about 60 per cent of water, which usually happens. Therefore, the level of water accumulated in the Toktogul reservoir, as well in the Orto-Tokoy and the Kirov reservoirs is considerably lower than before. Our neighbours should understand this. The shortage of water has also affected their farms. This is affecting land’s crop capacity particularly in [northern] Chuy Region and especially the yield of spring crops. It is also affecting industry. The shortage of electricity and its forced economy are certainly affecting, let us suppose, the house- building or the food processing sectors. The shortage of electricity may certainly affect other economic sectors as well. However, we are forced to regulate the energy consumption in order to prepare for the winter period. These necessary limitations are very tough measures, but they are a must because we must also think about 2009, since water, which has become insufficient, will be discharged next year as well. One must not forget that these limitations are temporary measures. In the meantime, we must also replenish solid fuel stocks and cut down the export of electricity to neighbouring countries. Before we sold about 2.2bn kWh of electricity to neighbouring countries. This amount was reduced to 400m kWh this year. We asked our neighbours before and we have requested them several times this year to draw up a set of measures to import electricity from them to save water in the Toktogul reservoir, but we have not reached an understanding yet. Kazakhstan, for example, may provide Kyrgyzstan with fuel, oil and coal in return for our future [electricity] supplies.

Possible solutions to energy problems

[Correspondent] Some specialists from neighbouring countries are accusing Kyrgyzstan of “usurping” the Toktogul cascade [of hydroelectric power stations].

[Chudinov] Yes, some of our critics are right that the Toktogul cascade was set up chiefly for irrigation needs, but one should admit that hydroelectric power stations are built not only for the sake of this. Before from 60 to 65 per cent of water discharges from the Toktogul reservoir were carried out in summer and from 40 to 45 per cent in winter. However, neighbouring countries replenished Kyrgyzstan’s fuel stocks in order to maintain the region’s joint water and energy balance. The reservoir stores 19bn cu m of water. If we give 14bn cu m of them to neighbours, how are we ourselves to live? They need water only in a certain period of a year. In other words, water flows should be regulated in any case, but this maintenance of hydraulic facilities costs efforts, time and resources. There was one situation in the 1980s and it is different now. Kyrgyzstan has no deposits of hydrocarbon material, oil or natural gas. Therefore, the Toktogul hydroelectric power station is our main energy potential, and we have to use it. If neighbouring countries compensate Kyrgyzstan for the lack of energy resources, we too will always be happy to help them. We are always ready to discuss problems and search for mutually acceptable solutions jointly with them, given, certainly, our national interests. One should not forget that the [Toktogul] reservoir was built on about 300,000 hectares of land when the Toktogul hydroelectric power station was erected. The areas of newly-developed lands, which appeared in neighbouring countries and which have become arable thanks to the Toktogul reservoir, exceed several times the area of land which Kyrgyzstan lost. We are certainly happy for our neighbours, but let them also help us now. Yes, water is given by God, but oil and natural gas are also given by God. One should always seek mutually beneficial solutions.

Originally published by Kabar, Bishkek, in Russian 1031 14 Aug 08.

(c) 2008 BBC Monitoring Central Asia. Provided by ProQuest LLC. All rights Reserved.