Considering the issue of selling the building located at Chui 96, OJSC “Kyrgyztelecom” is guided by a number of weighty reasons. The main objective is rational use of the company’s resources, optimization of expenses and contribution to the development of telecommunication infrastructure of the country.
The building, with a total area of 16,009.6 square meters, initially served as the administrative center of the company. However, over the years, the number of employees at the Central Office has been halved, and today it has only 315 people. Currently, only 36.6% of the space is used for the company’s needs, while the rest of the premises remain empty or are leased out. This places a significant burden on the budget, as the annual operating costs amount to around 40 million soms, not including major repairs.
The historical value of the building also imposes certain obligations. The object is an architectural monument of local importance and is under state protection. This requires regular coordination of repair works with specialized agencies, which increases costs and complicates property management. In addition, the building has long required modernization: heating, air conditioning, ventilation and electrical systems are outdated and need to be replaced. The elevator in “Kubik” is completely out of service. In order to lease out the premises, significant investments in renovation are required, as well as the creation of infrastructure – access roads, parking lots. However, the status of a strategic object limits the possibility of free access to customers, which reduces the interest of tenants.
Located in the very center of the city, the building is a business card of Bishkek. The neighborhood where it is located is popular among both residents and guests of the capital. However, despite the company’s efforts, it is becoming increasingly difficult to maintain the building in proper condition given the current financial capabilities. In recent years, Kyrgyztelecom has independently carried out a number of repair works, including replacement of the pavement of the square in front of the building, improvement of adjacent territories and cleaning of the facade. Nevertheless, these efforts are not enough to fully modernize the facility.
The valuation of the building by the independent company All Star amounted to 1 billion 556 million 906 thousand 868 soms, which determines the amount of the transaction. The price per square meter varies depending on the purpose and floor of the premises. At the moment negotiations on the terms of the transaction are underway to maximize satisfaction of both parties.
The sale of the building is seen as a favorable step in terms of financial efficiency. The deal will be concluded with OJSC “Aiyl Bank”, which will ensure that the object will remain in state ownership. Aiyl Bank’s need in the building is conditioned by a large staff, for which premises are rented now. The yard of the building at Chui 96 is planned to be used for agricultural machinery parades, which adds value for the buyer. Aiyl Bank is a highly profitable company with the resources to improve the area, including the reconstruction of the fountain, which will benefit the city and its residents.
The proceeds from the sale will not only replenish the state budget through taxes, but also direct resources to the company’s strategic projects. 14% of the transaction amount will immediately go to the treasury in the form of taxes, and by the end of 2025 it is planned to pay 25% of dividends to shareholders and 10% of profit tax to the state budget.
The funds will also be used to implement strategic projects, such as modernization of DWDM-systems, which will allow to close at least three new optical rings, construction of trunk lines between key cities of the country, as well as transition to modern communication technologies GPON. It is planned to build new data processing centers in the cities of Osh and Jalalabad, which will significantly increase the level of digitalization and sustainability of the telecommunications infrastructure.
Relocation of the Central Office of Kyrgyztelecom to more compact and functional premises will allow reducing excessive costs of real estate maintenance. This decision will not only optimize the company’s activity, but also create conditions for its further development. The proceeds will be used to implement key initiatives, such as transition to modern GPON communication technologies, construction of optical rings and development of distribution networks in the regions.
Thus, the sale of the building at Chui 96 is a strategically sound decision. It will allow Kyrgyztelecom not only to improve operational efficiency, but also to make a significant contribution to the development of telecommunications infrastructure of Kyrgyzstan, responding to the challenges of the time and providing higher quality of services for citizens and businesses.
