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Government pulls out of Smart City investment project deal

Government pulls out of Smart City investment project deal

Government of Kyrgyzstan said it has decided to pull out of the deal on Smart City investment project due to default on commitments.

The default on commitments was expressed in failing to stick to the deadlines set by the deal: preparation and submitting low-quality documents on implementation of the project, namely, its feasibility study, the statement said.

Consortium of investors did not follow the conditions of Government of Kyrgyzstan in the making of the feasibility study on a wide range of functional and technical requirements, the statement said.

"The parties did not reach the accord on technical issues that hindered further development of the project," the statement said.

The Government has decided to implement the Smart City project on its own with the support of international donors and business community.

"We wanted to use resources and possibilities of investors, but in connection with that the investors are delaying the project implementation, and the situation on the roads and safety of our citizens on the roads remain difficult, we decided to implement the project by ourselves," said Chairman of the Agency for Promotion and Protection of Investments Esenkul Momunkulov.

The Government of Kyrgyzstan faces no legal or economic consequences as the agreement has not entered into force yet, the statement added.

On January 12, the Government of Kyrgyzstan and the Huawei Technologies Co. signed an investment agreement totaling $60 million on the implementation of the Smart City project.

Түп нускага шилтеме : akipress.com

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