Contract between Kyrgyz state company and Czech Liglass approved despite doubts

The shareholders of the leading Kyrgyz state-owned power company have approved a multi-million dollar contract with the Czech firm Liglass Trading on the construction and operation of two hydro-electric plants in Kyrgyzstan as well as series of smaller electricity-generating projects. The contract was approved by a strong majority of 97.6 percent shareowners despite speculation in the Czech and Kyrgyz media that the Czech company may be unreliable and warnings from Kyrgyz diplomats that Liglass Trading lacked credibility and that a sister company of the firm was on the brink of bankruptcy. The contract with Liglass was signed on July 10 at a ceremony in the office of the government at which Kyrgyz President Atambajev himself was present. Both Prague Castle and the Czech Trade Ministry lobbied for Liglass.