29 сентбяря 2009 года, г.Бишкек Live in Kyrgyzstan! And work for the whole world. On concept of High Technology Park (HTP) Government of the Kyrgyz Republic

OUT OF THE PRESIDENTS SPEECH FOR THE COUNTRY RENEWAL COURSE The growth of the economic growth quality is planned to achieve through reforms and appropriate contributions from the development of: mining, agriculture and processing industry, construction, tourism, transport, communication and information, trade and export promotion, science and innovation.

Global players at the world software market the world software market Information Technologies Sector in the world Information Technologies Sector in the world and potential place of Kyrgyzstan and potential place of Kyrgyzstan Kyrgyz companies companies IT service export per capita in 2008, (USD) I level consumers II level Developers (30 thous. people) III level Developers (5 thous. persons) The volume of the world software market – more than 300 billion USD The volume of the world software market – more than 300 billion USD Leaders annually export software for billion USD Leaders annually export software for billion USD

Experience of India 100% income tax exemption during 5 years 100% income tax exemption during 5 years Next 5 years – 30% discount. Next 5 years – 30% discount.

Experience of Byelorussia Residents of the Park are exempted from taxes for 15 years special legal regime Residents of the Park are exempted from taxes for 15 years special legal regime Incomes, received by physical persons from Park residents charges 9% fixed tax Incomes, received by physical persons from Park residents charges 9% fixed tax Residents of the Park - 1% - Development fund of the Park Residents of the Park - 1% - Development fund of the Park Park is export oriented – 85% Developed software exported 15% - was sold in Byelorussia

Byelorussia Experience Major clients of the Park : USA – 42%, Russia – 17%, Germany – 14%, Great Britain – 9%, Singapore – 2,7%. Three times growth of export 35 countries of the world

Impediments for the development of IT technologies in Kyrgyz Republic Tax Rate of existing taxes Sales tax 2,5% Value-added tax 12% Profit tax 10% Property tax impose Payments to State social insurance in a general manner Individuals. – 8% Legal entities. – 19% Income tax 10% 1.Absence of sectoral preferences, especially tax preferences 2. Absence of developed infrastructure 3. Shortage of qualified personnel Barriers:

Main source of HTP –HUMAN RESOURCES Problems in education: - «brain drain» - absence of institutional grounds; - uncompetitive salary; - absence of incentives for further growth; - specificity of IT sector requires knowledge of English language up to the mark. High potential of our specialists. Cluster education: - School - University– HTP Alternative technologies of education : - results which must be directed to the market and be in conformity with international requirements on certification, - distance learning

Yesr Overall volume of turnover, $ Number of employed specialists 2008$ 10 mln $ 30 mln. 2020$ 1,5 bln. 2030$ 4 bln This conditioned by the high salary of programmers and opportunity to increase own welfare Prediction of the number of employed in HTP Annually the number of programmers will increase approximately to 1000 people

Prognostic indices of growth of money flows from the functioning of HTP 4 billion US $ 200 billion US $ billions US $ 200 mln. US $ Predictive indices of money flows growth from the functioning of HTP

Predictive indices of assignments to the budget 0 $ Tax inflows from the creation of HTP by the 2030 is expected on the level of 280 billion of US $ annually The level of social assignments by the 2030 is planned to be 500 thous. US$ 280 mln. US $ 0 US $

Economic indices of the Park Budget of costs for 1 year The project is profitable HTP profits Year General turnover volume, $ The amount of employed specialists Directories receipts 1%, $ million thousand million thousand 20201,5 billion million billion million Items of expenses $ Salary Equipment and infrastructure Marketing and promotion Administrative expenses Total50 000

Superior body consisting of 9 persons 3 are appointed by the President of KR, 3 appoints the association of software developers, 3 are elected by the appointed persons Supervisory board Subordinate bodies responsible for the technical expertise and current management of HTP activities HTP Directorate Experts council Tax form Given preferences(rates) Sales tax 0% Value added tax 0% Profit tax 0% Property tax Bonification Income tax (individual persons) 7% Social insurance 0% (legal entity) 8% from the average wage rate (individual persons) Special legal and tax status for HTP HTP management scheme

Directions and sectors of economy, where software products of HTP will be demanded

HTP DEVELOPMENT STAGES IN THE KRStage Arrangements title Realization terms 1 Enactment of bills 2009 Foundation of HTP 2009 Assignment of preferences 2009 Allocation of accommodation for the HTP directorate and the first residents 500 square meters 2009 I - STAGE

Stage Arrangements title Realization terms 2 Infrastructure improvement 2010 Premises broadening up to 2500 square meters (working area for 500 employee) Till the end of 2010 Creation of IT incubator under the HTP 2011 Achievement of software production volume of $30 million 2011 HTP DEVELOPMENT STAGES IN THE KR I I - STAGE

Stage Arrangements title Realization terms 3 Construction of office buildings, HTP business center for programmers square meters 2015 Opening of a business park on the Issyk-Kul lake shore 2015 Development of innovative and science intensive technologies (medicine, naotechnology) 2015 Achievement of software production volume of $300 million 2015 HTP DEVELOPMENT STAGES IN THE KR I I I - Stage

Thank you very much!