Bishkek’s Manas International Airport looks to become a main aviation hub in Central Asia

Momberger

Bishkek’s Manas International Airport should become one of the main aviation hubs in Central Asia by 2023, the National Development Strategy of Kyrgyzstan for 2018-2040 says. This requires improving the airport infrastructure and equipment and bringing the level of its services to international standards. The airport renovation requires massive investment and competent management. The Kyrgyz government is exploring the possibility of transferring the country's airports to external management as part of a public-private partnership, an issue widely discussed in the country. If airport renovation projects are implemented, passenger air transport may increase by 30% to 40%, Daniyar Abdyldaev, Director of the Public-Private Partnerships Centre under the Ministry of Economy of Kyrgyzstan, told a press conference in Bishkek. -- The Manas International Airport OJSC includes eleven operating airports across Kyrgyzstan - five international and six regional ones. Only Manas Airport in Bishkek and Osh Airport in the south of the country, are profitable, while the rest are subsidized. All of the airports were commissioned from 1960 to 1980, and only the Manas and Osh airports and Tamchy Airport in the resort area of Issyk-Kul Lake have been modernized. Due to the outdated aircraft fleet, the European Union has put all Kyrgyz airlines on its blacklist, which negatively affects the image of the country. To be removed from the blacklist, Kyrgyzstan’s civil aviation has to pass through the ICAO audit, which requires large investments. The basis audit includes such sections as primary aviation legislation, principles of civil aviation organization, aeronautical personnel licensing, operation of aircraft, airport and ground-based air navigation services, and aircraft accident investigation. Modernization is also necessary due to the Government’s decision to introduce the open-sky regime. According to the Government, one of the most promising options for the development of the aviation industry is to attract an internationally recognized investor with successful experience in implementing similar projects and managing airports in other countries. The investor should finance modernization of the airports to bring its infrastructure and services in line with international requirements. In 2018, the Kyrgyz Government created a working group to develop a project on transfer of Kyrgyzstan’s airports to external management as part of a public-private partnership. The WG included independent experts, members of parliament, business associations, and representatives of Manas International Airport and government agencies. Nine proposals from international development partners were submitted for this project. The WG decided to start developing the project in partnership with the International Finance Corporation (IFC), a member of the World Bank Group. The IFC has successful experience in implementing such projects. Co-operation with the IFC will include a comprehensive analysis of all eleven airports controlled by Manas and the development of a feasibility study. This will be the basis for the integrated development of the airport infrastructure in Kyrgyzstan. If the Government approves the submitted documents, a separate decision will be made on the implementation of the project through a transparent and competitive selection of an investor ensuring the most favorable conditions for Kyrgyzstan. The term for the transfer of airports to PPP has not yet been determined. According to the PPP mechanism, it will be a maximum of 30 years. While the airport will be used under the PPP system, the state will also make a profit. It may be at 40%/60% or 30%/70%. There were also discussions about the possible sale of a 79% state stake in the MIA OJSC. -- Given the limited air traffic and poor own air fleet in Kyrgyzstan, there are no growth prospects, and the PPP mechanism would not produce the desired effect, some local experts say. #1131.13