August 3, 2015
Islam Karimov Receives the Chief of Isuzu Motors. 2
Over 270 state assets privatized in Uzbekistan in 1H.. 2
The Investment Program of the Republic of Uzbekistan for 2015. 2
Uzbekistan to construct new railway. 5
Polytechnical Museum opens in Tashkent 5
politics
Islam Karimov Receives the Chief of Isuzu Motors
President of the Republic of Uzbekistan Islam Karimov met with Susumu Hosoi, Chairman of Isuzu Motors Ltd., on July 29 at the Oqsaroy.
The head of state noted the high level of cooperation between Uzbekistan and Japan in various fields. The mutually beneficial partnership with Japan’s leading high-tech companies has been steadily expanding.
Agreement on the entry of Isuzu Motors Ltd. to the board of founders of SamAuto has been signed in Tashkent between the Uzavtosanoat Joint-Stock Company and the Japanese manufacturer.
The deal is a logical continuation of the long-term cooperation between Uzavtosanoat and Isuzu Motors.
The parties agreed on the implementation of SamAuto development strategy, including the renovation and extension of the model series, enhancement of the range of localization, widespread introduction of advanced Japanese technology and production processes.
The cooperation between Uzavtosanoat and Isuzu Motors Ltd. was launched in 2007, when the Japanese company – as a technology partner of SamAuto – started to supply chassis and engines for manufactured buses, medium-duty trucks and other commercial vehicles. From that time on, together with Isuzu Motors, 10.2 thousand buses and 11.5 thousand trucks have been produced, including 1.2 thousand buses and 2.6 thousand trucks in 2014. An important stride in the advancement of cooperation was the launch of production of new models of freight cars running on compressed natural gas.
Prospects of bolstering the bilateral cooperation and other issues of mutual interest have been discussed during the meeting at the Oqsaroy.
(Source: Press Service of the President of the Republic of Uzbekistan)
economy
Over 270 state assets privatized in Uzbekistan in 1H
About 274 state assets were realized to private sector in the first half of 2015 for 66.94 billion soums with investment obligations for US$19.32 million and 165.733 billion soums, the press service of the State Competition Committee said (currency rates of CB RU from 03.08.2015 1$= 2575.18 soums).
According to the committee, about 154 state assets were realized on zero redemption price for investment obligations for US$19.32 million and 154.187 billion soums.
The funds will be used to modernize production capacities and increase production of import-replacing products, as well as creation of new jobs.
Currently, 1,167 states assets are offered for sale at public trades, including 452 objects on zero redemption price. The prices for 257 of 715 were decreased.
Over 42.5 billion soums were received due to all sources in the reporting period, of which 14.64 billion soums were directed to the state budget.
(Source: UzDaily.com)
investments
The Investment Program of the Republic of Uzbekistan for 2015
- It is well known that a significant volume of overseas investments poured into the country’s economy is reflected in an annual investment program. How is such a program formed? And what are its aims and tasks?
According to the regulatory documents of the Republic of Uzbekistan, an investment program represents a complex of interrelated measures designed to ensure the steady and dynamic development of the national economy and the implementation of main principles and strategic objectives in the process of structural reformation of separate industries and regions by exploiting natural, raw-material, financial, material and labour resources in the most rational way.
In essence, the investment program is an instrument of carrying out the state investment policy. Containing a list of priority investment projects, it is formed on the basis of the following principles:
– The backing of the most vital sectors of the national economy, with special emphasis laid on the organization of production facilities that specialize in the deep processing of raw materials, farm produce and manufacture of competitive finished goods;
– The priority investment in socially significant sectors (education and healthcare);
– The further development and perfection of municipal-service and transport infrastructure.
As a rule, the investment program is funded from the following sources:
– The funds appropriated from the state budget and the state off-budget foundations;
– Foreign loans supplied against a guarantee from the government;
– Credits rendered by commercial banks, including foreign ones;
– Direct investments made by physical persons and legal entities, including foreign ones.
- What volume of foreign investments is planned to attract under the 2015 Investment Program of the Republic of Uzbekistan? What are the sources of these investments?
The Investment Program for 2015 envisages the realization of the total of 446 projects to be funded from all sources. It is projected to implement investments and credit facilities to the tune of over US $6.5 billion within its framework.
More than half of this amount – US $3.5 billion – will be implemented with the help of foreign investments and credits under 156 projects.
In order to realize another package of 80 projects, the Investment Program plans to attract foreign direct investments from overseas companies and loans from commercial banks.
Foreign direct investments and commercial credits, as a rule, are attracted in order to set up up-to-date production facilities, with their production processes being based on advanced technologies, in a move to encourage both the further development of manufacturing’s basic industries and the production of competitive consumer goods, which are much in demand domestically and in foreign markets.
The remaining 76 projects will be financed by credits allotted on favourable terms against a guarantee from the government of the Republic of Uzbekistan. The sources of these investments include credits given by a number of international financial institutions, such as the World Bank, the Asian Development Bank and the Islamic Development Bank, as well as by crediting institutions from Japan, Korea, China, Germany, France, the Arab states etc.
The credit facilities rendered on favourable terms are mainly used to fund the implementation of projects in the social sphere, including public health, education, drinking-water supply, irrigation and land-reclamation, as well as the improvement of municipal-service and road infrastructure.
It should be observed that in the total volume of foreign investments and credits to be implemented within the framework of the Investment Program of the Republic of Uzbekistan for 2015, foreign direct investments account for some 75 per cent and credits allotted on favourable terms against a guarantee from the government make up 25 per cent.
- To what industries and targets is it planned to direct the foreign investments attracted under the State Investment Program (on the basis of concrete examples)?
The biggest portions of foreign investments will go to the oil-and-gas and petro-chemical industries, followed by power engineering, information-communications technology, road infrastructure, transport infrastructure, construction and production of building materials, the light and tanning industry, the chemical industry etc.
In the social sphere, the largest volume of foreign credits will be implemented in such sectors as drinking-water supply, irrigation and land-reclamation, healthcare and education.
As one example, let’s take a project to construct a gas-chemical complex at the Surgil deposit. The facility will process natural gas and turn out polyethylene and polypropylene, the most generally sought after raw materials needed for the production of a wide range of goods.
In the power engineering sector, the attracted foreign investments will be used to finance such projects as the construction and reconstruction of the Talimardjan, Navoi, Turakurgan and Takhiatash thermo-electric power stations, with the subsequent installation of highly-effective steam-gas plants there. This machinery will make it possible to save up to 50 per cent of natural gas. One should also mention the construction in the town of Samarkand a 100-MWt photo-electric power station, the first of the kind in the region.
In the road-construction industry, one of the vivid examples of how foreign investments are used is a project to build an electrified railway section Angren – Pap, which is designed to significantly increase the goods and passenger traffic between the Fergana Valley and the rest of Uzbekistan.
In the healthcare sector, it is necessary to mention a project to construct in the city of Tashkent a children’s multi-profile medical center of the 4th generation. The only such facility in the entire Central Asian region, it will meet all the requirements of modern international medical technology and management.
Additionally, the Investment Program of the Republic of Uzbekistan for 2015 encompasses projects to build dwelling houses, with the help of loans provided by the Asian Development Bank and the Islamic Development Bank. In the current year, 12,000 houses will be erected across the country.
- Undoubtedly, the Investment Program is very important for the development of manufacturing. Does the document stipulate the attraction of foreign investments to agriculture?
As many as 18 projects are realized in the drinking-water supply and farming sectors in the current year, with the attraction of foreign credits against a guarantee of the government of the Republic of Uzbekistan. Overall, these projects are estimated at US $1.2 billion.
Within their framework, these foreign credit facilities are directed mainly to land-reclamation projects and projects to further improve the irrigation systems in the Republic of Karakalpakstan, the Fergana Valley, as well as in Khorezm, Navoi, Kashkadarya and Surkhandarya provinces. As a result, water resources will be exploited more effectively, thus ensuring the maximum supply of water to irrigate about 1.5 million hectares of arable land for the cultivation of farm produce.
The most notable example is a project to rehabilitate the Tashsakin system, the main system of irrigation channels in Khorezm province. As a result of its realization, some 100,000 hectares of arable land in the region will be substantially reclaimed; more than 193 hectares will be irrigated; and the annual saving may reach 800 million c. m. of water resources. Moreover, the transition to a gravity-based system of irrigation will allow the local farmers to eliminate 279 pumps, with the real possibility of saving up to 8 billion Soum per year.
As well as that, the foreign investments will be poured into projects to upgrade the morally obsolete and physically depreciated pumping stations in Andijan, Bukhara, Namangan, Navoi and Kashkadarya provinces. The installation of modern energy-saving technologies will raise the productivity of their pumping equipment. As a consequence, the latter will be capable of irrigating over 350,000 hectares.
The third category includes projects intended to boost the development of the fruit-and-vegetables sector. To this end, the state lends a helping hand to farms, agricultural enterprises and other establishments involved in agro-industrial activity in many provinces by financing the purchase of new sorts of seeds, modern agricultural machinery and equipment for the processing of farm produce.
- What is noteworthy is that small business and private entrepreneurship in Uzbekistan are regarded as one of the sectors that deserve pre-eminent attention. This raises the following question: will the indigenous entrepreneurs have access to the foreign investments attracted within the framework of the State Investment Program for 2015?
Of course, the state policy of backing the development of small business and private entrepreneurship has been reflected in the Investment Program of the Republic of Uzbekistan for 2015.
Apart from supporting entrepreneurs in rural areas, the Investment Program stipulates the implementation of 11 projects to extend credits to private entrepreneurs, with the attraction for this purpose of funds from the Asian Development Bank and several leading financial institutions from Germany, Holland, China etc. Their total volume is expected to exceed US $500 million. Of this, no less than US $106 million will be attracted in the current year.
Credits are also given toward the cost of projects designed to raise the energy efficiency of industrial enterprises and to accelerate the introduction of energy-saving equipment and technology. With this in view, US $100 million worth of credit lines have been attracted from the International Development Association, which is part of the World Bank Group.
Let it be noted in conclusion that the volumes of credit lines extended by international financial institutions and foreign commercial banks to fund the development of small business and private entrepreneurship in Uzbekistan tend to augment year on year.
(Source: «Business partner.uz» newspaper)
INFRASTRUCTURE
Uzbekistan to construct new railway
Joint stock company Uzbekiston Temir Yollari will construct new railway Navoi-Kanimeh-Misken with the length of 396.9 km.
President of Uzbekistan Islam Karimov with his resolution approved construction of new railway. Realization of the project will allow effectively use potential of Bukhara, Khiva, Navoi regions and Karakalpakstan Republic.
The project will be implemented in two phases. The first phase will be implemented in 2015-2017 and envisages construction of railway Navoi-Kanimeh-Misken for movement of trains on diesel traction.
The cost of the first phase of the project is US$238.1 million and it will be financed due to internal resources.
Within the second stage, it is planned to electrify the railway. The term and cost of the second phase will be determined later.
(Source: UzDaily.com)
Musuems
Polytechnical Museum opens in Tashkent
Numerous museums, which are very popular among tourists visiting our city, tell about the past and the present of the capital of Uzbekistan.
Soon the number of museums will be replenished. Polytechnical Museum, located in Mirabad district of Tashkent will open its doors for the people of Uzbekistan and tourists, the press service of “Uzbektourism” said.
The museum is divided into two zones – the exposition and interactive.
At the exposition zone everyone can get acquainted with retro car and patterns of early agricultural machinery. It also presents the entire range of «GM Uzbekistan» of domestic automobile industry, starting with the “Tico” and ending with “Orlando”, models of the major automobile factories in Uzbekistan and their products. Particular interest is an unforgettable 3D-mapping show and “Kinetic Balls” installation, the analogues of which do not exist in the whole Central Asia.
The exhibits of interactive zone allow directly involving in the process of learning the basics of science. Dancing robots, mysterious room Eisma, mirror maze, exciting computer games in the area of “interactive floor» and «X-box» are waiting for visitors there. And this is not the entire list of exhibits, rides, presented in the museum.
(Source: Uzreport.uz)
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