January 13, 2014
14 th january – the day of Defenders of the homeland.. 2
President awards a group of employees of law enforcement bodies. 2
Navoi Mining and Metallurgy Combine completes construction of three uranium ores for US$75m.. 2
Uzbekistan-China: Major Projects, Contracts. 2
Press-service of MFA
14 th january – the day of Defenders of the homeland
President awards a group of employees of law enforcement bodies
President of Uzbekistan Islam Karimov signed a decree “On awarding a group of employees of law enforcement agencies and ministries in connection with the Day of Defenders of the Homeland” on 10 January 2014.
Uzbekistan marks the Day of Defenders of the Homeland on 14 January.
According to the decree, about 117 employees of law enforcement bodies have been awarded with orders and medals for their outstanding contribution in improving the defense capacities of the state, national security and inviolability of borders of the country, education of the youth in the spirit of national independence and patriotism to the country, the courage, bravery and dedication to the duty to protect national interests and ensuring the peace, stability and public order.
In particular, representatives of the law enforcement bodies received the “Fidokorona xizmatlari uchun”, “Mehnat shuhrati”, “Shon-sharaf”, “Dustlik”, “Mardlik” orders and “Jasorat”, “Sodiq Hizmatlari uchun” and “Shuhrat” medals.
(Source: UzDaily.com)
Economy
Navoi Mining and Metallurgy Combine completes construction of three uranium ores for US$75m
Navoi Mining and Metallurgy Combine (NGMK) completed construction of three uranium fields at the Central Kyzulkum with total cost of about US$75 million in 2013.
Construction of Alendy, Aulbek and Northern Kanimeh fields were completed and they will reach their design capacity by 2015. This will help to increase uranium production on underground leaching technology at the combine by 40%.
As earlier reported, NGMK was planning additionally invest US$124 million to increase uranium production in 2012-2013. The funds were directed to speed up construction of six uranium mines till the end of 2013. The programme implementation will help to increase uranium production by 1.7 times by 2014 compared to 2,270 tonnes in 2007.
In August, it was reported that NGMK suspended construction of three mines Meylisay, Aulbek and Northern Mayzak due to inefficiency of underground leaching technology and high carbonate content in uranium ores. Later, works at Aulbek mine were continued. NGMK does not provide information when it will resume works at two other mines.
(Source: UzDaily.com)
INTERNATIONAL COOPERATION
Uzbekistan-China: Major Projects, Contracts
The first country in our list is China. It is a nation which is not only the world’s economic powerhouse, but also the one that was destined to become, within a short period of time, Uzbekistan’s second largest foreign trade partner.
The contemporary Uzbek-Chinese economic relations are a multilayered dialogue, covering virtually all areas of industrial production. Here we talk not just about myriad of joint projects but mainly about their qualitative value. Most of these joint enterprises are modern factories that produce export-oriented goods.
The bilateral trade is constantly growing. In 2012 it reached $3.4 billion, and for the first 9 months of last year has already exceeded $3.5 billion (an increase by 60.8%). Since 2002, some 83 investment projects totaling $6.75 billion have been implemented or under way now in Uzbekistan using Chinese investments and loans. 52 projects involve direct investment totaling $5.75 billion. There are 480 Chinese-Uzbek joint ventures in Uzbekistan. More than 70 Chinese companies have opened their offices in Uzbekistan.
Jizzakh Special Industrial Zone and its branch in Sirdaryo region, which were created in partnership between the two sides is a kind of basic foundation for the economic interaction. Uzbekistan launched last year an ambitious program of advanced development of transport, industrial and engineering infrastructure at FIZ Jizzakh worth about $50 million. The main part of the spending will be paid from the state budget, while the rest will be financed by enterprises and loans from international financial institutions.
FIZ will operate for 30 years, with the possibility of its further extension. During this time there will be a special tax regime and several custom privileges that will be granted to investors for a period from 3 to 7 years depending on the amount of investments. Thus, any company which will invest from $300,000 to $3 million in a project here will be free from taxes for 3 years. Investments from $3 million to $10 million are provided with tax exemption for 5 years, while those worth more than $10 million are exempt for 7 years.
Active PR campaign about this techno park was made among Chinese businessmen. For example, several Uzbek-Chinese investment forums passed in April in four Chinese cities- Beijing, Hangzhou, Suzhou and Shenyang. After the forums 54 documents have been signed about establishing joint high-tech projects with total worth of $300 million. In the course of investment forum that was organized in Tashkent last June 21 agreements were signed totaling more than $100 million. These documents embrace projects in various spheres of the Uzbek economy, such as energy, electrical engineering, telecommunications, textile, industrial engineering, and pharmaceutics. Some of the projects have already been implemented. For example one of the world’s leaders in the communication business, the Chinese ZTE Company has already established the first production of smartphones in Central Asia under the brand UZTE. Last summer, the production of three types of smartphones was launched in the Sirdaryo branch of the FIZ. According to Liu Xiao Dong, UZTE CEO, the company plans to start the production of new types of smartphones with improved functionality and modems this year. Another interesting project that will be implemented this year is the production of high quality elevators by Yahgzhou Sanxin Mining Equipments.
Oil and gas industry is another growing segment of cooperation. Since 2012 Uzbekistan supplies natural gas to China. The construction of the third gas pipeline “Uzbekistan – China” is now underway. During President Xi Jinping’s last year’s visit to Uzbekistan the two countries signed a protocol to the agreement on the principles of construction and operation of the pipeline. The document provides the construction of the fourth pipeline with a design capacity of 30 billion cubic meters per year. China National Petroleum Corporation (CNPC) is involved in a project related to deep processing of natural gas in Muborak Gas-Chemical Complex. In addition, CNPC along with Uzbekneftegaz Company and Lukoil Overseas Holding Ltd (Russia) conduct exploration works in the Uzbek part of the Aral Sea.
Cooperation in transport sector is also actively developing. A consortium of Chinese companies CNTIC-CNRDLRC signed a contract to supply 11 modern O’ZEL freight locomotives developed in conjunction with the Japanese company Toshiba in accordance with technical requirements specified by Uzbek experts. In the future they will be used in a unique railway line Angren-Pop, which is now under construction; the new railway will be part of a new transit corridor between Europe, Central Asia and China. Uzbekistan Railways Company and Chinese Railway Tunnel Group signed a contract for laying the saddle tunnel on this transit corridor worth $455 million. National rail carrier implements another project in cooperation with XCMG, which is the largest company in China that develops and manufactures construction equipment, as well as is the leading exporter of construction machineries. The partners plan to create a joint venture in Uzbekistan, which will specialize in the production of excavators.
Agribusiness is a promising area of cooperation, which the two countries are going to develop in the near future. China is one of the main buyers of Uzbek cotton. The country is willing to develop this area further. In particular, domestic ginneries are already equipped with modern Chinese packaging and pressing equipment. Farmers successfully use various mini-technologies for processing fruits and vegetables. China National Machinery Industry Corporation will deliver 300 modern caterpillar tractors to Uzbekistan that will greatly increase the effectiveness of row operations.
Chinese companies also work in the production of agricultural fertilizers. CITIC Company completes the construction of a processing complex in Dehqonobod potash fertilizer plant which will produce an additional 400 tones of potash per year. The project is financed at the expense of Uzkimyosanoat, Fund for Reconstruction and Development of Uzbekistan and a loan from China Eximbank. It should be noted that Chinese banks are actively finance various projects in our country. The total loan portfolio of Chinese financial institutions in Uzbekistan exceeded $4.5 billion. They are directed to projects in the fields of health, education, energy, transport and telecommunications. New projects for the Chinese government’s concessional loans totaling over $400 million are now under negotiations. The Fund for Reconstruction and Development of Uzbekistan and China Development Bank signed an agreement last year was about co-financing the priority investment projects totaling $11.6 billion.
The two countries have plans to cooperate in one of the most successful domestic industries – the automotive industry. Major Chinese bus manufacturer Golden Dragon intends to build in Uzbekistan a manufacturing complex which will assemble European quality busses. The transport vehicles will be exported to the CIS countries.
Other joint project is a new chemical complex in Navoiazot, which will produce PVC, caustic soda and methanol. Chinese and Uzbek companies also cooperate in the construction of a new 150 MW power generating unit at the Angren TPP. And all this is only a small part of a huge economic system of interaction between Uzbekistan and China running like clockwork. Experts say that this is not the limit. Mew major projects, contracts and investments are ahead.
(Source: “Uzbekistan Today” newspaper)