Azernews.Az

By Aynur Jafarova

Kyrgyzstan and Turkey mulled a wide range of issues of mutual interest and agreed on deepening bilateral cooperation during a one-day official visit of Turkish Prime Minister Recep Tayyip Erdogan to Kyrgyzstan on Wednesday.

Erdogan first met with his Kyrgyz counterpart Jantoro Satybaldiyev, who voiced the country's intention in more strong relations.

"We are interested in the development of bilateral trade, economic and humanitarian relations. Our government provides active work for the development of investment opportunities of the country and creation of favorable conditions for the business environment. We urge the Turkish businessmen to actively invest in the Kyrgyz economy," Satybaldiyev said.

Satybaldiyev said that Kyrgyzstan and Turkey should and would increase the volume of the trade turnover as they have a high potential for it.

"It is necessary to give impetus to the development of trade and economic cooperation, in particular in the tourism, light industry, hydropower, transport, health service, education and communications sectors," he said.

Erdogan, In turn, said the trade turnover between Turkey and Kyrgyzstan increased by $90 million in 2012 to the amount of $302 million.

"We have come to Kyrgyzstan with a group of more than 100 Turkish businessmen. We could reach a trade volume of $1 billion if our businessmen work together," Erdogan said.

According to him, the volume of the trade turnover may reach $1 billion very soon as long as the sides have a political will.

Earlier, the Kyrgyz Ministry of Economy reported that the trade turnover between Kyrgyzstan and Turkey amounted $228 million in 2012.

Turkish foreign direct investment in the Kyrgyz economy reached $20.232 million in 2012, the growth was 75 percent compared to the results of 2011, the report said.

The main sectors for Turkish investment in Kyrgyzstan's economy were processing industry, construction, trade, agriculture, production of rubber and plastic items, machinery and equipment production and financial operations.

Erdogan also mentioned that one of the main issues on the agenda is the strengthening of cultural ties. He proposed to establish a cultural center in Kyrgyzstan.

Noting that the cultural capital of the Turkic world in 2013 is Turkish city Eskishehir, he offered to hold cultural days of Kyrgyzstan in this city.

Satybaldiyev noted that Kyrgyzstan is preparing actively for the session of Kyrgyz-Turkish intergovernmental commission, which will take place in Ankara in August.

The sides agreed to hold the 7^th meeting of the intergovernmental commission on trade and economic cooperation on August 13-15 in Ankara.

Following the talks, Turkey and Kyrgyzstan signed a number of documents, in particular an agreement of cooperation in the tourism and forest industry sector, a cooperation agreement between the aviation companies of both countries, a protocol of amendments to the agreement between Turkey and Kyrgyzstan on the establishment of air trafficking which was signed on October 14, 1994 in Ankara, as well as a memorandum of understanding was signed between the Kyrgyz Ministry of Economy and the State Agency of Investment Attraction and Support under the Turkish Prime Minister.

Water resources

Kyrgyzstan have rich water resources and investing in hydro resources of Kyrgyzstan is very perspective, Erdogan said, noting that Turkey intends to implement projects in the hydropower sector of Kyrgyzstan.

"Kyrgyzstan's water sources should be used effectively. We can start joint projects for installing hydroelectric power plants in Kyrgyzstan," Erdogan said.

He said that Turkey will send its investors to evaluate the projects on the increase of production of electric power and the construction of facilities in the hydropower sector.

"Turkish specialists have great experience in the construction and exploitation. We have launched a system which decreases the energy loss by eight percent. It would be applied in Kyrgyzstan, which will affect the competition environment and indicated on the cost of the production," Erdogan mentioned.

However, Erdogan said that investing in this sector will depend on how Kyrgyzstan will secure the foreign investment.

According to him, Turkey raised the issue to facilitate the opportunities to invest in the country and to simplify the laws concerning the entrepreneurs.

Manas airport

Turkey is ready to assist Kyrgyzstan to transform the Manas airport to a civil hub.

"We will study and discuss the transformation of Manas airport to a civil aviation hub. We are ready to help and share our experience with it," Erdogan said.

The Prime Minister also mentioned that Turkey has an experience in the construction of such infrastructure facilities.

"There are companies which were and are engaged in it. We are one of the leading countries in the sphere of technical supply," Erdogan said.

However, Erdogan refused to comment on the issue of withdrawal of the U.S air base from the Manas airport, as he said it would be politically and ethically incorrect.

"I think this issue is an internal matter of Kyrgyzstan and commenting it would be politically and ethically incorrect," Erdogan said.

Business forum

Speaking at the Kyrgyz-Turkish business forum, Satybaldiyev said that Turkey set a model of development of the Kyrgyz national economy.

"Kyrgyzstan is open to Turkish investors. Our expectations from the business forum are high. We are ready to cooperate with Turkey," Satybaldiyev said.

"The Kyrgyz-Turkish business forum is highly important for both sides. As the Prime Minister of Kyrgyzstan, I will do whatever is necessary to boost cooperation with Turkey," he said.

He also mentioned that it is important for Kyrgyzstan to develop and accept new laws in order to develop the investment attractiveness of the country.

According to him, Kyrgyzstan has low taxes, cheap raw materials and workforce which mean that it is very easy to construct plants and factories in the country.

"Turkey has become one of the leading countries in Europe, we should learn their experience," Satybaldiyev concluded.

In turn, Kyrgyz Minister of Economy Temir Sariyev said that he supported Erdogan's target of raising Turkish-Kyrgyz trade turnover to $1 billion by 2017.

"We will work hard to reach this target," Sariev noted.

According to him, more than 300 joint Kyrgyz-Turkish ventures operate in Kyrgyzstan and since 1995, Turkey has invested $300 million foreign direct investment in Kyrgyz economy.

Sariyev said that Kyrgyzstan has two advantages for investing. One of them is its economic-geographical location and the second is Kyrgyzstan's membership at the World Trade Organization and free trade zone of the CIS.

"Kyrgyzstan also intends to enter the Customs Union of Russia, Belarus and Kazakhstan, as well as to integrate to the single economic space. As you know, this means the free movement of capital and resources," he added.

Turkish Minister of Economy Zafer Chaglayan informed the participants that Turkish investments to Kyrgyzstan have increased seven times during the past 10 years.

High Level Cooperation Council

During his Kyrgyzstan visit, Erdogan also joined the second meeting of the High Level Cooperation Council established two years ago. The meeting of the council was opened by Kyrgyz President Atambayev who was the co-chair from the Kyrgyz side.

The council determines the strategy of the bilateral relations, implemented in the political, military, economic, transport, agricultural, tourism, cultural, scientific and humanitarian sectors as well as in the sphere of security and health service.

Speaking at the event, Erdogan voiced pleasure with that the second meeting of the High Level Cooperation Council is taking place in Kyrgyzstan.

"We will evaluate the current situation between our two countries and discuss what could be made," Erdogan said. "As a neighbor of China, Kazakhstan, and Uzbekistan, Kyrgyzstan is one of the two richest countries of the region with its water sources. Kyrgyzstan must evaluate its potential in the best way possible."

President Atambayev, in turn, named Turkey ad Kyrgyzstan's important strategic partner, saying that his country aims to develop cooperation with Turkey.

"Turkey is the first country which recognized our independence," Atambayev said adding that close relations between the two countries needs further development and cooperation.

Atambayev also thanked the Turkish government for provided support to his country, in particular for $100 million credit, $6 million grant and deactivation of state debt worth $50 million.