Receipts under agreement with Centerra Gold increased to $ 150 million

Government of Kyrgyzstan has increased money receipts under a strategic agreement with Centerra Gold to $ 150 million. The Information Support Department of the Cabinet's Office reported.
The Prime Minister Mukhammedkaly Abylgaziev held a meeting on the mechanisms of work of the Nature Development Fund and the Social Partnership for Regional Development Fund, created as part of the strategic agreement between the Government and Centerra Gold.
The Prime Minister said that the strategic agreement has entered into force. He noted the great importance of Kumtor for the country's economy with its share in GDP of about 9 percent and about 18 percent in industrial production.
In the first half of 2019, at least 9.37 tons of gold have been produced at Kumtor. The company has transferred taxes and obligatory payments in the amount of more than 4.22 billion soms.
"The document that has entered into force was signed on September 11, 2017 and contained a list of mutual obligations that the parties had to fulfill in order the agreement to take effect. The total receipts under it until 2026 would have to amount to $ 87 million. But as a result of lengthy additional negotiations, the sum was increased to $ 150 million, including money for exploration," said the Prime Minister.
By the end of 2019, Kyrgyzstan will receive over $ 77 million, including $ 7 million received by the Cancer Care Support Fund.
The Prime Minister stressed that the Government would ensure open and transparent operation of the funds and effective use of the allocated money.
"Financial means of the funds should be used strictly for their intended purpose. In some areas, a mechanism for repayment of funds should be applied, including the receipt of investment income from money of the funds. Their activities will be in tune with the large-scale work on regional development initiated by the President Sooronbai Jeenbekov and will create additional opportunities for the implementation of important projects in the regions," said Mukhammedkaly Abylgaziev.
Related news Centerra announces satisfaction of conditions to completing strategic agreement According to the head of government, only open joint work will increase the confidence of citizens in the activities of the largest production project, because all the processes around Kumtor mine have always caused a massive public outcry.
"Exactly this kind of joint work and peaceful settlement of disputes with investors should become an indicator of improvement of the investment climate of the country. This is an important event for investors working in Kyrgyzstan. The work of Kumtor enterprise should become more cost-effective in order to use the full potential of the mine in the interests of our people while maintaining environmental safety, especially after the cessation of active work at the mine," said Mukhammedkaly Abylgaziev.
The head of government instructed the responsible state bodies to monitor compliance with the terms of the agreement, international environmental standards and the legislation of Kyrgyzstan.