GILS Construction and Infrastructure: Kyrgyzstan

KYRGYZSTAN

1. What types of design and construction work require a licence in your country?

In light of the Law of the Kyrgyz Republic "On the Licensing and Permitting System in the Kyrgyz Republic," urban planning, design and survey works for residential, public, and industrial buildings and structures (objects of Categories I, II, III), as well as construction and installation works, excluding the construction of individual residential houses (objects of Categories I, II, III), are subject to licensing in the Kyrgyz Republic.

The types of construction work subject to licensing include the following categories:

1. Engineering Surveys:

• Engineering and geodetic surveys: topographic surveys, linear surveys, creation of geodetic control networks.
• Engineering and geological surveys: engineering and geological works for construction projects.

2. Urban Planning and Design Works:

• Development of urban planning documentation: territorial planning, master plans for cities and rural settlements, engineering infrastructure, and territorial protection.
• Architectural design: residential buildings, public buildings and structures, industrial facilities.
• Construction design and engineering: residential buildings, public buildings and structures, industrial facilities, bridges, roads and transport structures, overpasses, hydraulic and reclamation structures (dams, levees, canals, etc.), hydroelectric power plants.
• Design of internal and external systems, networks, and facilities: power plants, distribution devices and transformer substations, power supply, power transmission lines, water supply and sewerage, boiler rooms, heat networks and ventilation, gas supply.
• Development of special sections of projects, including environmental protection and cost estimates.
• Technological design (specifying types).
• General designer functions.

3. Construction and Installation Works (excluding the construction of individual residential houses of categories I, II, III):

• Earthworks.
• Erection of load-bearing and enclosing structures of buildings and structures, roofing: installation of metal structures, installation of monolithic concrete and reinforced concrete structures, installation of precast concrete and reinforced concrete structures, masonry of stone, brick, blocks, installation of wooden load-bearing structures and products.
• Installation of internal and external engineering systems, networks, and facilities: power plants, distribution devices and transformer substations, power supply, power transmission lines, water supply and sewerage, boiler rooms, heat networks and ventilation, gas supply.
• Installation of technological equipment (specifying types).
• Construction of hydroelectric power plants, hydraulic construction.
• Transport construction (bridges, roads, structures), overpasses.
• General contractor functions.

2. Can legal entities registered in foreign countries obtain a licence for design or construction?

A foreign company is entitled to obtain a license for construction activities in the Kyrgyz Republic by establishing a subsidiary or a branch in the Kyrgyz Republic. When establishing a subsidiary, the subsidiary will be the license holder, whereas, when establishing a branch, the foreign company itself will directly be the license holder.

3. Which foreign licences and permits in the field of construction and design can be recognized in your country?

The recognition of licenses on the territory of the Kyrgyz Republic, issued by authorized bodies of foreign states, is carried out through mutual recognition of licenses, automatic recognition of licenses based on international agreements, as well as unilaterally.

On April 27, 1994, an Agreement on Mutual Recognition of State Licenses for Construction Activities, issued by the licensing centers of Russia and the Kyrgyz Republic, was concluded between the Government of the Russian Federation and the Government of the Kyrgyz Republic. However, in practice, this agreement is not operational.

Thus, if there are no international agreements for the recognition of foreign licenses on the territory of the Kyrgyz Republic, the recognition of a license for the aforementioned types of activities is only possible if there is an order from the Cabinet of Ministers of the Kyrgyz Republic recognizing such specific licenses unilaterally.

4. Is it necessary to register a legal entity in your country to carry out design or construction work? 

A foreign company is entitled to obtain a license for construction activities in the Kyrgyz Republic by establishing a subsidiary or a branch in the Kyrgyz Republic.

5. What requirements are imposed on construction contracts and design and survey contracts, including when one of the parties is a non-resident of your country?

Construction contracts and design and survey contracts must comply with the following requirements:

- The contractor is obligated to construct a specified object or perform other construction works within the agreed timeframe, and the client must provide the necessary conditions for the contractor to perform the work, accept the results, and pay the agreed price​.

- The contract must include project and estimate documentation, which defines the scope, content of work, and other requirements.

- If one of the parties is a non-resident, the same legal framework applies as for resident parties. However, mutual recognition of licenses and international agreements may affect the execution of such contracts.

6. In what cases should construction contracts and design and survey contracts be concluded following a special procurement procedure?

Special procurement procedures must be followed in the following cases:

- When stipulated by the law or other normative legal acts that govern the specific project.

- When public funds or state assets are involved, requiring compliance with public procurement regulations.

- When specific regulations or international agreements necessitate such procedures.

7. What are the features of hiring local and foreign personnel in the implementation of construction and design and survey activities?

One of the main feature is the state qualification certification of specialists in the construction industry, which is carried out in accordance with the List of Specialties. The certificate is issued to individuals performing the corresponding types of work in the field of architecture and construction, as specified in the List of Specialties, at enterprises, institutions, and organizations, regardless of ownership form, as well as in the course of individual labor activities.

8. Is it possible to use foreign standard construction contracts?

Yes, it is possible to use foreign standard construction contracts, provided they comply with the national legal requirements and do not contradict mandatory local regulations. Adaptations may be necessary to align with local laws and standards.

9. Is it possible to use foreign law and foreign courts when concluding construction contracts and design and survey contracts?

The use of foreign law and foreign courts in construction contracts and design and survey contracts is generally permissible under the following conditions:

The choice of foreign law must be explicitly stated in the contract. 

The choice of foreign jurisdiction must not contradict any mandatory provisions of Kyrgyz law.

Authors: Elvira Maratova (Partner), Aizhamal Taalaibek (Junior Associate)