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RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 11, 2024 No. 554

About questions of funds of development of regions

For the purpose of enhancement of activities of funds of development of regions, according to Article 34 of the Budget code of the Kyrgyz Republic, Articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve:

1) Standard regulations on funds of development of regions according to appendix 1;

2) the request for receipt of financing for social and infrastructure projects and projects, initiatives of local community announced within the state subsidizing, according to appendix 2;

3) the request for receipt of financing for economic projects according to appendix 3;

4) selection criteria of social and infrastructure projects and projects, the initiatives of local community announced within the state subsidizing, according to appendix 4;

5) selection criteria of economic projects according to appendix 5;

6) the contract for financing of social and infrastructure projects and projects, the initiatives of local community announced within the state subsidizing, according to appendix 6;

7) the Standard method of monitoring and assessment of activities of funds of development of regions according to appendix 7.

2. Determine that the economic projects financed at the expense of means of funds of development of regions through commercial banks of the Kyrgyz Republic with 100 percentage state equity interest are implemented before their completion in accordance with the terms of the financial agreement concluded between commercial banks and funds of development of regions.

3. Bring in the order of the Government of the Kyrgyz Republic "About means of the budgetary institutions accumulated on special and deposit accounts in system of the single treasurer account" of September 29, 2017 No. 626 the following change:

in the Regulations on means of the budgetary institutions accumulated on special accounts in system of the single treasurer account, approved by the above-stated resolution:

- add appendix with Item 26-1 of the following content:

"

26-1

Interest for using the budget credits issued at the expense of means of funds of development of regions

FKF

".

4. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About questions of the Ministry of Finance of the Kyrgyz Republic" of November 15, 2021 No. 253 the following change:

in Regulations on the Ministry of Finance of the Kyrgyz Republic approved by the above-stated resolution:

- to add the subitem 1 of Item 12 with the paragraph of the following content:

"-in accordance with the established procedure exercises control of means of funds of development of regions;".

5. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About the extreme number of staff of state bodies of the executive authority of the Kyrgyz Republic and other state bodies of the Kyrgyz Republic, including technical and service personnel" of November 15, 2021 No. 264 the following change:

in appendix 1 to the above-stated resolution:

- state Item 3 in the following edition:

"

3

Ministry of Finance of the Kyrgyz Republic

5628

974

including:

central office

253

48

territorial subdivisions

530

145

subordinated divisions

4845

781

".

6. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About questions of subordinated divisions of the Ministry of Finance of the Kyrgyz Republic" of December 10, 2021 No. 302 the following change:

in Regulations on Financial and credit fund under the Ministry of Finance of the Kyrgyz Republic approved by the above-stated resolution:

- to add the subitem 1 of Item 12 with the paragraph the eighteenth the following content:

"-administration of the budget credits granted at the expense of means of funds of development of regions;".

7. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Regulations on work with the budget credits granted from the republican budget" of July 29, 2022 to No. 406 the following change:

The regulations on work with the budget credits granted from the republican budget, approved by the above-stated resolution:

- add with Item 13-1 of the following content:

"13-1. The procedure and conditions of provision of budget credits at the expense of means of funds of development of regions are determined by the provision regulating procedure for use of means of funds of development of regions and this Provision.".

8. Recognize invalid:

1) the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Standard regulations on Funds of development of regions" of January 16, 2023 No. 20;

2) the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About introduction of amendments to the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Standard regulations on Funds of development of regions" of January 16, 2023 No. 20" of April 6, 2023 No. 187;

3) the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About introduction of amendments to the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Standard regulations on Funds of development of regions" of January 16, 2023 No. 20" of October 12, 2023 No. 545.

9. To plenipotentiaries of the President of the Kyrgyz Republic in areas and local public administrations in three-months time to bring statutory documents of funds of development of regions into accord with Item 1 of this resolution.

10. To the Ministry of Finance of the Kyrgyz Republic:

1) in accordance with the established procedure by preparation of the bill of the Kyrgyz Republic "About introduction of amendments to the Law of the Kyrgyz Republic "About the republican budget of the Kyrgyz Republic for 2024 and planning period of 2025-2026" to consider the changes following from this resolution;

2) to take other measures following from this resolution.

11. To impose control of execution of this resolution on management of control of execution of decisions of the President and the Presidential Administration Cabinet of Ministers of the Kyrgyz Republic.

12. This resolution becomes effective from the date of official publication.

Chairman of the Cabinet of Ministers of the Kyrgyz Republic 

A. Zhaparov

Appendix 1

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of September 11, 2024 No. 554

Standard regulations on funds of development of regions

Chapter 1. General provisions

1. This Standard provision is developed according to regulations of the Budget code of the Kyrgyz Republic, the Code of the Kyrgyz Republic about the non-tax income, the Law of the Kyrgyz Republic "About public procurements", the Law of the Kyrgyz Republic "About non-profit organizations" and determines procedure for activities of funds of development of the region (further - Fund).

2. Activities of Fund are performed on the basis of the Code of the Kyrgyz Republic about the non-tax income, the Budget code of the Kyrgyz Republic, the Law of the Kyrgyz Republic "About public procurements" and this Standard provision.

3. The fund has the status of the legal entity in the form of Fund of development of the region or Fund of development of the area and is created in form of business of public institution.

4. Founder of Fund of development of the region is the plenipotentiary of the President of the Kyrgyz Republic in area.

5. Founder of Fund of development of the area is the local public administration.

6. Fund is money of the budget system of the Kyrgyz Republic.

7. For implementation of activities of Fund the budget and special accounts in system of treasury are opened.

8. The fund performs the activities on the principles of legality, openness, transparency, publicity, and also rational and effective management of fund.

Chapter 2. The concepts applied in this Standard provision

9. The concepts applied in this Standard provision:

1) the applicant - body of local self-government / the state body / subject of entrepreneurship which submitted the project bid on selection of projects for financing by fund;

2) the contractor of the project - body of local self-government / the state body / subject of entrepreneurship, whose project request got approval of the Supervisory board of Fund, and the signed contract with Fund for financing of the project;

3) infrastructure services - works and/or services of social, economic or production appointment, including work and/or services provided with use of infrastructure facility and/or on servicing of infrastructure facility;

4) infrastructure facility - property or the property complex of social, economic or production appointment which is in the state-owned and municipal property;

5) the infrastructure project - the list of the tasks, actions and actions directed to creation or improvement of infrastructure facility with reasons for social and economic feasibility, amounts and terms of implementation of the capital expenditures initiated by local government bodies with participation of representatives of local community;

6) mobilization of local community - process of the problem resolution at the local level with direct participation and in case of support of local community, organized by group of citizens;

7) the project request - the project description on the basis of standard format provided on behalf of body of local self-government / the state body / subject of entrepreneurship for participation in tender on selection of the projects financed by fund;

8) project funding plan - the part of the project request describing stages and procedure for financing of the project on tranches and corresponding to the project implementation plan;

9) the plan of monitoring and assessment - stages and procedure for carrying out observation for the purpose of identification of variations from requirements of this Standard provision in case of project implementation, and also efficiency evaluations of activities of Fund;

10) the social project - the purposeful, limited in time activities of local government bodies or state bodies for provision to the population of infrastructure services in education, cultures, health cares, sport, social protection, leisure, work with youth, folk art within the solution of questions of local value, the delegated state powers and directed to improvement of social, economic and cultural infrastructure of settlements and also to provision of the state and municipal services;

11) the economic project - the business project with complete description and reasons for economic feasibility, amount and terms of implementation of direct investments by subjects of entrepreneurship in creation of new goods and services or reconstruction or upgrade of the operating productions for the purpose of profit earning;

12) startup project - the innovative business project having economic or social novelty, relevance and the practical importance, creating considerable improvements, directed to the problem resolution and profit earning;

13) the subject of entrepreneurship - the physical persons and legal entities irrespective of legal forms and patterns of ownership registered in the procedure established by the legislation of the Kyrgyz Republic and performing on the risk and under the property responsibility the activities which are not forbidden by the legislation with revenue generating purpose;

14) initiative of local community - activities of the inhabitants living in the territory of the city / ayylnogo the aimag, entrepreneurs and the organizations of civil society for forming of initiative groups, promotion, initial discussion, selection, entering into local government bodies of the projects directed to improvement of conditions of residence of local population in the city / ayylnom the aimag and also on mobilization of financial, material and other resources of local community and entrepreneurs and preparation (together with local government bodies) projects for their representation on tender on selection of the projects pushed within initiatives of local community for financing by fund;

15) the state subsidizing of initiatives of local community - the money provided at the expense of means of the republican budget for projects implementation of local community for improvement of the territories and improvement of conditions of residence of local population in the city / ayylnom the aimag;

16) green economy - economy which leads to growth in prosperity of people and strengthening of social justice in case of simultaneous essential decrease in risks for the environment, keeping and increasing greatly the natural capital, effectively using resources and stimulating preserving natural ecosystems of the country.

Chapter 3. Purpose and task of Fund

10. The purpose of Fund is the program implementation of social and economic development of areas, areas, cities and ayylny aimags, support of initiatives of local community, local government bodies, state bodies and financing of economic projects of the subjects of entrepreneurship directed to increase in level of living of citizens, creation of conditions for regional economic development by improvement of infrastructure of the territories, improvement of quality of the rendered services and creation of workplaces in regions.

11. Task of Fund is ensuring effective use of financial resources of Fund according to priorities of programs of social and economic development of areas, areas, cities and ayylny aimags.

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