Community Development Projects

One of the main socially oriented activities of Kumtor Gold Company CJSC is to provide sponsorship and charitable assistance by financing projects to develop local communities, improve the financial situation of socially vulnerable population, develop the agricultural sector, support youth, sports, cultural initiatives, educational, medical institutions, and environmental projects.

To effectively fulfill the above tasks in 2023, Kumtor Gold Company received 413 letters of request from individuals and legal entities of the Kyrgyz Republic to provide sponsorship and charitable support.

All received letters of appeal were processed and submitted to the Kumtor Gold Company’s Project Support, Sponsorship and Charity Committee. As a result, 133 out of 413 letters of appeal were approved.

*Dynamics of received letters and inquiries by region

·                  charitable assistance was provided in the form of 2,140 food packages for orphanages and vulnerable population groups; ·                  compensation was paid to 53 residents of the village of Barskoon who suffered as a result of an environmental accident on the Barskoon River in 1998; ·                  material assistance was provided to local residents affected by the natural disasters that occurred from August 2 to 7 in Tyup district; ·                  assistance was provided to kindergartens in Karool-Dobo and Munduz villages of Jety-Oguz district to provide children with comfortable conditions and modern safe play space; ·                  assistance was provided for the reconstruction of a monument and a museum of military glory of Afghan soldiers and participants of local conflicts in the town of Cholpon-Ata, Issyk-Kul region; ·                  wheelchairs and diapers, soap detergents, and LED lights were purchased for the public association “Disabled Persons of the Moscow District of Chui Region” and for children’s neuropsychiatric social stationary institution in Belovodsk; ·                  1,300 tons of coal were distributed to persons with disabilities living in Issyk-Kul and Naryn regions; ·                  T. Kubatova, a resident of Balykchy town was provided to assistance in repairing her house that burned down in a fire; ·                  the charitable foundation “First Children’s Hospice” was provided in assistance of travel and accommodation costs of terminally ill children and their accompanying parents and doctors during a four-day vacation at a summer camp on Lake Issyk-Kul; ·                  New Year gifts were purchased for orphans children from socially vulnerable families and children with disabilities in Issyk-Kul and Naryn regions.

·               the personal computers, interactive whiteboards and projectors were purchased for educational institutions in Issyk-Kul and Naryn regions; ·               musical equipment and instruments were purchased for the Tyup District Administration and the Tyup Children’s Music School named after S. Orozov; ·               new methodological and didactic aids, children’s books and educational toys were purchased for children of the special pre-school educational organization No. 16 in the Pervomaisky district of Bishkek.

·               financial assistance was provided to a local government of Kyzyl-Suu village for installation of drip irrigation system on 30 hectares of land in Kyzyl-Suu village; ·               financial resources have been allocated for the reconstruction of roads in the regions; ·               funds have been allocated to purchase trays for irrigation water supply in Zhargylchak village of Jety-Oguz district; ·               financed a project for the development of an architectural and town-planning opinion and cost estimates for the construction of a hatchery facility for the Ton district fish breeding plant; ·               funds were allocated to the Jety-Oguz District Veterinary Department to purchase necessary equipment for the veterinary sanitary-expert laboratory; ·               financial support was provided to the Tamga cooperative for the purchase of a crop sprayer.

·               Karakol City Hall was financed with the purchase of special equipment (Howo L001-01 garbage truck); ·               within the framework of the “Zhashyl Muras” campaign, funds were allocated to fence 8 hectares of land and purchase necessary equipment for forestry of Jeti-Oguz district; ·               planting of Tien-Shan spruce seedlings was organized in Jety-Oguz district forestry plots; ·               for providing 600 families with drinking water in the village of Eshperova B. of Mambetov area, a project of the drinking water system was co-financed to manufacture and replace the water tower; ·               financial assistance was provided to the public fund “Bugu-Ene” for the purchase of hay, grain, and fruit fodder for the animals of the zoo in Karakol city;

·                 the construction of several kindergartens villages were financed in Issyk-Kul and Naryn regions; ·                 financial assistance was provided for the implementation of projects for the construction of a 924 square meter mini-football field and reconstruction of a stadium in Naryn and Issyk-Kul regions; ·                 assistance was provided in the form of sets of personal computers and multifunctional printers to improve the material and technical base of the territorial subdivisions of several law enforcement agencies.

·                 the importance of rapid diagnosis in the medical field an ultrasound machine with 3 sensors was purchased and handed over to the Clinical Multidisciplinary Hospital No. 2; ·                 partially financed the repair of the building, water supply system, sewerage system and improvement of the adjacent territory of the Republican Rehabilitation Center “Archaly” located in the village of Archaly, Alamudun district, Chui region; ·                 the repair and restoration work of the hypobaric barocamera was funded of the National Center of Cardiology and Therapy named after Academician M. Mirrakhimov under the Ministry of Health of the Kyrgyz Republic; ·                 the training initiative was supported to improve the qualifications of laboratory service specialists in Issyk-Kul region to detect intestinal parasites.

“Kumtor Gold Company” is also actively involved in creating favorable conditions for popularizing sports and organizing various sports and recreational events.

One of the most important priorities of Kumtor Gold Company is to contribute to the comprehensive development of the region where it operates. Over the years, the company has made every effort to become a reliable partner to local communities. Our constructive cooperation is the key to the company’s success today.

During the implementation of programs in the region, the company strictly adheres to the Strategy for Sustainable Development of the Issyk-Kul Region, which includes four main directions:

• Agribusiness sector development;
• Supporting the growth and diversity of small and medium-sized businesses;
• Engaging with youth in the region and supporting educational initiatives;
• Ecology.

By the end of the company’s operating activities, it is very important to us that all projects and initiatives currently supported by Kumtor will be able to become independent, sustainable and generate revenue for local budgets and the population of the region.

ONE VILLAGE ONE PRODUCT PROJECT (OVOP)

The project aims to combine the efforts of private entrepreneurs and local communities to develop the economic potential of the Issyk-Kul region by producing goods using existing local resources.

KGC re-launched (started co-funding again) the project in 2016. Small business model through OVOP approach in Issyk-Kul oblast has already been established in the frame of JICA OVOP project.
Target group and area: Community Based Organizations (CBO) focused on felt production in Djety-Oguz and Ton regions. The project has potential to become self-sustainable and successful in contributing towards SME development in the region. Currently, there are 8 production facilities running as part of the community development projects launched by Kumtor Gold Company. The above facilities have earned more than US $46,000 in profit from March to July 2020.

Current results in 2020:

• 75 trainings held;
• release of 30 new products organized;
• 6 product sales contracts signed;
• a big order of the Japanese company “Muji” completed;
• 1,200 sea buckthorn seedlings planted on an area exceeding 1 hectare.

IRRIGATION IMPROVEMENT

The project focuses on supporting agricultural development. The government is also emphasizing expanding arable land. According to expert estimates, the total area of arable land in the country could potentially be doubled with sufficient investment.

The main goals of our investments are:
(1) To increase irrigation water volume and to significantly expand areas under irrigation
(2) To increase yield and thereby increase farmer’s income.
The areas for rehabilitation were identified at the Regional Committee meetings. The project benefits a large number of people/farmers who have a permanent problem of lack of irrigation water.

Projects in 2020

Dam Construction in Zelenyi Gai

The issue of the dam construction in Zelenyi Gai of Jeti-Oguz district, Issyk-Kul region, was first raised at a meeting of the Regional Committee in 2018. This hydraulic structure will continuously supply irrigation water to more than 250 hectares of land where local farmers grow wheat, barley and potatoes. In total, 1,035 households with a population of 4,599 people will get access to irrigation water thanks to the dam.

The following works have been performed at the facility: the bed of the daily runoff pond’s outlet and stilling basin have been encased with the cast reinforced concrete, precast pipes of the outlet have been mounted, the bottom and slopes of the outlet canal, specifically 360 of 377 meters, have been encased with concrete.

The project budget is KGS 2,968,347.

Replacement of concrete plates in Ak-Bulun irrigation canal

In 2020, KGC and the Regional Committee supported initiatives of Ton District State Administration on the reconstruction of Ak-Bulun irrigation canal. This irrigation canal is of great importance for the residents of Kara-Talaa, Ton district, Issyk-Kul region. However, now most of the concrete plates the canal consists of are worn-out and obsolete. Due to large water losses, local farmers had to reduce irrigation on almost 30 percent of irrigated sites.

Upon completion of repairs and replacement of canal concrete walls, the canal will be able to serve more than 260 hectares of agricultural land with irrigation water.

At the moment, a more than KGS 3.1 million contract has been signed with the contractor for the acquisition, delivery and installation of concrete plates. Preparations for dismantling of old structures are currently in progress.

Construction of Kakyr irrigation canal

In 2020, KGC and the Regional Committee have supported one more initiative of Ton district administration on the construction of Kakyr irrigation canal. The new irrigation facility will be built near Kok-Moinok 2 of Ton district, Issyk-Kul region. It is significant that this rural district, as compared to other aiyl aimaks, almost has no irrigated land. Implementation of this project will help serve more than 100 hectares of land with irrigation water. It is planned that the land will then be transferred to local residents for agricultural use. Each family will be provided with a land lot. The estimated cost of this project is over KGS 4.9 million.

At the moment, the project has been completed by 40%. The irrigation canal is expected to be put into operation by the end of 2020.

POTABLE WATER 

The project is designed to provide local communities with access to potable water. The project is very popular since it improves lives of thousands of people. Requests coming to the company for potable water projects are discussed at Regional Committee meetings.

Projects in 2020

A drinking water project for residents of Tosor, Jeti-Oguz district, Issyk-Kul region

As part of the project, a water intake facility will be built and a major overhaul of the water supply system will be carried out. The project is implemented together with the non-governmental foundation “Fair and Sustainable Development Solutions (FSDS). The contribution of KGC has exceeded KGS 4.4 million. Implementation of this project will help serve more than 650 households with safe drinking water.

Overhaul of the water supply system in Tort-Kul of Ton district, Issyk-Kul region

KGC allocated over KGS 4 million for the acquisition of repair materials. More than 4,800 residents live in the village, but the water is available for only 10 hours a day. Owing to the project, the local population will be able to use water 24/7.

Overhaul of the water supply system in Kadji-Saz of Ton district, Issyk-Kul region

More than 160 people live in this village. Owing to the project, all of them will get access to the safe drinking water. The project is being implemented together with the non-governmental foundation “Fair and Sustainable Development Solutions” (FSDS). The project budget is KGS 2,570,327.

LBI VALUE CHAIN DEVELOPMENT

Financing initiatives that address enhancing growth and diversity of SMEs. Local Business Initiatives (LBI) program will support local entities to enhance their capacity to be able to create new jobs and initiate provision of services that are lacking or insufficient in quality or quantity.

Waste sorting plant in Balykchy

The project is unique not only for Issyk-Kul region, but also for the entire Kyrgyzstan. Organizing and starting waste sorting at the Balykchy municipal landfill site and its subsequent disposal will help significantly improve sanitary conditions and environmental safety of the region. The project is implemented by the municipal enterprise “City Development and Sanitation” under the Balykchy City Hall. KGC contributed more than KGS 4.9 million to the procurement of a waste sorting equipment manufactured in Russia. The municipal enterprise has prepared platforms for the installation of the equipment, built power lines and a hangar. Also, bins for plastic waste have been placed in public places around the city.

Reconstruction of a rehabilitation center for children with disabilities in Eshperovo

In 2019, KGC contributed more than KGS 900,000 to the reconstruction of a rehabilitation center for children with disabilities in Eshperovo of Ton district, Issyk-Kul region. Building and finishing works have been completed inside and outside the center, all necessary equipment has been acquired. The center is focused on working with children with psychomotor disorders, Down syndrome, cerebral palsy, autism, etc., as well as with the parents of such children. The purpose of the center is to ensure socialization and integration of children with disabilities and development of their daily living skills.

REHABILITATION OF PASTURE ROADS

The goal of the project is to provide access to local farmers and shepherds to distant pastures in order to prevent degradation of pastures in close area. Distant pastures are no longer used, the bridges fell into disrepair and this led to heavy overconcentration of cattle around elevation settlements.

In 2020, KGC supported the road rehabilitation project which included 2 roads leading to the remote pastures over the Barskoon river and through Juuku pass. In the latter case, clearing up 12 km of road leading to the high mountain pastures through the Juuku pass will help cut short by 2 days. The total budget of these projects amounted to KGS 2,821,314.

COMMUNITY OWNED PROJECTS

KGC offers support to local initiatives submitted to the company and discussed at Regional Committee meetings. Projects are usually implemented in partnership with local authorities, local NGOs and youth groups.

Projects in 2020

Overhaul of the Ak-Shyirak ayil okmotu building

Renovation works under the project included thermal insulation of the building, replacement of the floor, old windows and doors, as well as exterior and interior finishing work. Ak-Shyirak of Jeti-Oguz district, Issyk-Kul region, is located high in the mountains – almost 3,600 meters above sea level. 342 people live in the village.

Earlier, in order to get some papers and make use of other public services, they had to go to the neighboring village, Kyzyl-Suu. After the renovation of the building, 5 employees will be working here, and residents of Ak-Shyirak will be granted an opportunity to solve all the issues related to the public services locally.

Project budget – KGS 2,210,856.

Construction of a “Stop-and-Rest Point” in Kadji-Sai of Ton district

This project was initiated by the Ton District State Administration and supported by the Regional Committee. At the moment, the project is underway. The project is aimed at improving and providing local services to tourists, which will allow to create a safety area for visitors and jobs for the locals. The project involves construction of a recreation area and relevant infrastructure, parking lots for vehicles, installation of light fixtures, landscaping of the site. Kumtor Gold Company co-funded this project, having contributed KGS 1.45 million to it.

About 20 thousand tourists are expected to be able to make use of those services in the summertime.

Assisting sites in Ton and Jeti-Oguz districts aspiring to join the UNESCO Global Geoparks Network

The project is aimed at preserving the geological, natural and cultural heritage of the region, creating conditions for the development of sustainable tourism and raising awareness of the local population about UNESCO programs and conventions concerning the protection of the natural heritage.

The project was initiated by the local place of destination “Teskei Jeek”, which includes tourist camps and local communities of Issyk-Kul region, involved in the popularization of nomadic traditions. Activists, representing the southern coast of the Issyk-Kul lake, are aspiring to join the UNESCO Global Geoparks Network. For this, in particular, a dedicated website must be created, as UNESCO rules go. KGC contributed KGS 617,000 for the website development, analysis and collection of information about cultural and historical sites and natural monuments. At present, there are 161 UNESCO Global Geoparks in 44 countries.

Creation of Ak-Bulun and Aidyn-Kol nature reserves

Creation of two community-based micro-reserves, Ak-Bulun and Aidyn-Kol, in Ton district of Issyk-Kul region, is a project intended to protect and conserve biodiversity of the southern coast’s marshy areas.

The project is being implemented jointly with UNDP. Kumtor Gold Company’s contribution was about KGS 1.3 million to be spent on the development of dedicated websites of nature reserves, development of the “Statute of Community-Based Micro-Reserves,” arrangement of a hunting cordon, construction of a pond for growing and keeping the fish breeding stock, stocking the Aidyn-Kol lake with fish, production and installation of road signs, as well as the popularization of environmental topics.