The President of Uzbekistan, Shavkat Mirziyoyev, signed a decree ratifying an international agreement with Kyrgyzstan, under which four resorts on Lake Issyk-Kul will be transferred to Uzbekistan's ownership, reports Economist.kg.
The ratification concludes a lengthy process of negotiations and legal proceedings between the two countries. The agreement was signed in Tashkent on July 18, 2024, during the visit of Kyrgyz President Sadyr Japarov. The Kyrgyz Cabinet of Ministers issued the relevant decree on September 23 of this year.
The issue dates back to 2016 when the Kyrgyz government, under then Prime Minister Temir Sariev, decided to seize the resorts from Uzbekistan. This led to legal action in international arbitration, where Uzbekistan demanded $65 million in compensation. By 2023, after years of negotiations, the amount was reduced to $40 million. Eventually, the parties reached an agreement to transfer ownership of the resorts to resolve the dispute.
Initially, President Sadyr Japarov stated that the resorts would be leased to Uzbekistan for 49 years in exchange for investments. However, the text of the signed agreement indicates a transfer of ownership to Uzbekistan. There are no terms or references to leasing in the agreement.
According to the documents, Kyrgyzstan transfers ownership of the resorts "Golden Sands of Central Asia" (formerly "Bosteri"), "Rohat-NBU" (formerly "Rahat"), "Dilorom" (formerly "Enesai"), and the unfinished resort "Buston" to Uzbekistan. Nowhere in the agreement is it mentioned that Kyrgyzstan is leasing the properties for 49 years. Article 2, Section 1 of the Agreement clearly states that "the Kyrgyz side transfers ownership of the buildings and structures to the Uzbek side."
Article 4, Section 1 of the Agreement notes that "Uzbek organizations have the right to transfer the properties to third parties... However, the Kyrgyz side has the preferential right to acquire the properties from third parties at their market value, as determined by internationally recognized independent appraisal organizations."
Ownership will be registered with Uzbek joint-stock companies, such as "Tashkent Mechanical Plant," "National Bank for Foreign Economic Activity of Uzbekistan," "Asakabank," and "Uzpromstroybank."
The companies are obligated to modernize the resorts to international standards of at least three-star hotel complexes and employ no less than 80% Kyrgyz citizens. Additionally, the Uzbek side must ensure unrestricted access for Kyrgyz citizens to the beach areas.
Kyrgyzstan provides guarantees to Uzbek organizations under the Agreement, committing to protect property rights from expropriation and other forms of forced deprivation.
CentralasianLIGHT.org
October 2, 2024