Kyrgyzstan: New Manas Fuel Deal to be Finalized

The governments of Kyrgyzstan and the United States are set to sign an amendment to the Manas Transit Center’s leasing agreement that will enable the purchases of aviation fuel directly from a Kyrgyz state-owned enterprise.

The move follows months of negotiations between the two governments. Kyrgyz President Roza Otunbayeva has repeatedly criticized the existing holder of the Manas fuel-supply contract, Mina Corp, claiming the secretive offshore company was involved in corrupt schemes during previous presidential administrations.

Mina Corp representatives have adamantly denied having any corrupt dealings with Kyrgyz officials.

The amendment to Article 7 of the existing base leasing agreement modifies the requirement that goods and services procured locally must be done so on a purely competitive basis. In this case, the amendment applies to fuel purchases.

“In order to provide for the acquisition by the US Government of fuel from an entity or entities designated by the Kyrgyz Government, the two countries have agreed that, notwithstanding the provisions of Article 7 of the Transit Center Agreement, a mutually agreed portion of the requirements of the United States for fuel and for related services at the Transit Center will be reserved for supply by an entity or entities designated by the Government of the Kyrgyz Republic and approved by US Government contracting representatives,” said Larry Memmott, deputy chief of mission at the US Embassy in Bishkek.

“They have also agreed that the award of contracts under this provision will be in accordance with all applicable US laws and regulations, including a determination by the US Government contracting representatives that the proposed prices are fair and reasonable,” Memmott added. A US congressional report, published in December, asserted that the Pentagon had done a poor job of maintaining oversight of its fuel contracts for Manas.

A draft of the lease agreement amendment was approved by Kyrgyz lawmakers on February 1. The document is due to be signed by both parties on February 8. The amendment to the air base’s leasing agreement builds on a September 24, 2010 amendment to the solicitation for aviation fuel at the facility. That amendment to the solicitation created the legal framework necessary to enlist more than one fuel supplier and was tailored to accommodate a Kyrgyz state owned enterprise.

Mina Corp previously stated it was “pleased” to be working with the Kyrgyz state owned enterprise, the Manas Refueling Complex. However an industry insider told EurasiaNet.org that being forced to share its contract with a Kyrgyz supplier will mean millions of dollars in lost revenue for the Gibraltar-registered entity.