DUSHANBE, July 12, Asia-Plus – RIA Novosti — The prime ministers of Kyrgyzstan and Kazakhstan signed Wednesday an agreement to establish a joint investment fund worth $120 million for rehabilitating the Kyrgyz economy.

"We have signed an agreement to establish a Kyrgyz-Kazakh investment fund worth $120 million," Kazakh Prime Minister Karim Masimov said after talks with his Kyrgyz counterpart Almaz Atambayev. "Kazakhstan will contribute $100 million and the other $20 million will come from Kyrgyzstan."

The Kazakh premier said the fund would be meant to develop the Kyrgyz economy.

Atambayev said that Kyrgyzstan would receive an interest-free non-refund investment, not a loan, to develop its economy.

Among other things, Masimov said, the parties agreed that Kazakhstan would allow Kyrgyz railway carriers to use Kazakh domestic tariffs. "A decision was taken to cancel Kyrgyzstan''s debt to Kazakh railway carriers," he said.

Kazakhstan also plans to take part in a tender for the privatization of Central Asia''s largest Kambaratinskaya hydropower plants, located in Kyrgyzstan. Masimov said the initiative was favorable since "Kazakhstan needs additional energy resources."

The two officials will also attend a Kyrgyzstan-Kazakhstan business forum later Wednesday to discuss promising Kyrgyz economic projects.