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Kyrgyzstan sets strict limit on budget deviations in road construction

President of Kyrgyzstan Sadyr Japarov signed amendments to the Law on Highways, aimed at increasing transparency and efficiency in the use of public funds for the construction, repair, and reconstruction of roads.

Under the new provisions, project documentation must reflect not only market prices for construction materials and labor, but also include plans for the placement of telecom infrastructure along the roads.

The law also includes a new concept of an «experimental project», which allows for the use of innovative technologies, materials, and equipment in road construction. These projects must be based on international experience and include estimated costs backed by data from manufacturers or similar international projects.

It is important that the discrepancy between the approved estimate and the final cost of the contract should not exceed 5 percent. All estimate calculations that have passed the examination at the authorized body will become the basis for prices in public procurement and can be revised only in the manner established by the Cabinet of Ministers.

The law will come into force in 10 days.

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