February 17, 2010

Politics:
President of Uzbekistan receives head of ADB
Economics:
New Project at Dautash
Quick and Comfortable Train to Samarqand
Ample Prospects for Private Businesses
Society:
Professional Training as a Motor of Progress

POLICY

PRESIDENT OF UZBEKISTAN RECEIVES HEAD OF ADB

President of Uzbekistan Islam Karimov received President of the Asian Development Bank Haruhiko Kuroda at Oqsaroy residence in Tashkent on 16 February.

Welcoming the head of ADB, President Karimov said that Uzbekistan was actively cooperating with many international financial institutions, and that ties with ADB were especially important for the country.

Being a long-time reliable partner of Uzbekistan, the ADB, jointly with Uzbek specialists, continuously develops and implements the strategy of cooperation in many sectors of the country’s economy.

The 43rd Annual meeting of the ADB, scheduled for 1-4 May in Tashkent, will be the first such forum in Central Asia, which demonstrates the acknowledgement of the effectiveness of the Uzbek model of reforms by the international community.

Since 1995, when Uzbekistan became a full-fledged member of the ADB, the country has received credit resources worth over USD 1.2 billion, which were used for implementation of strategically important projects in transport infrastructure, energy, agriculture, education, small business and other areas.

Today, the ADB tops the list of international financial organizations cooperating with Uzbekistan in terms of the volume of the provided credits.

At the negotiations at Oqsaroy residence, Haruhiko Kuroda affirmed the ADB’s intent to expand the scale of cooperation with Uzbekistan in various sectors of economy.

Islam Karimov and Haruhiko Kuroda discussed issues of further strengthening of cooperation between Uzbekistan and the ADB, as well as other topic representing mutual interest. (Source: National News Agency UzA)

ECONOMY

NEW PROJECT AT DAUTASH

Uzbek Metallurgical Plant is planning to organize production of ferro-alloys on the basis of Dautash deposit in Qashqadaryo region.

Uzmetkombinat concluded a contract with Russia’s Uralmekhanobr on the technical study of the project of ferro-alloys production line based on Dautash manganese deposits.

Upon the study, in the first half of 2010 Bekabad plant is planning to announce a tender for the project feasibility study. The results are scheduled to be announced in the fourth quarter of the year.

In accordance with the prerequisites, the project envisages the organization of mine of manganese ore and facilities for primary ore concentration directly on site, as well as concentrating units for producing ferromanganese and silicomanganese ferrosilicomanganese at Uzmetkombinat.

Resources of Dautash deposits comprise 1.25 million tons of ore with manganese content up to 20%. Experts estimate that the annual ore production of 40,000 tons will enable production of 15,000 tons of manganese ore while the annual needs of enterprises of the republic reach 8,000 tons. The rest will be exported. (Source: Uzbekistan Today newspaper)

QUICK AND COMFORTABLE TRAIN TO SAMARQAND

In accordance with the decree of the Uzbekistan’s President from January 5, 2010, O’zbekiston Temir Yo’llari (Uzbekistan Railways) acquires two Spanish high-speed electric trains TALGO-250 to start running in the third quarter of 2011.

The document highlights that upon the negotiations with the Spain’s PATENTES TALGO, S.L. Uzbekistan Railways concluded a contract for the purchase of two high-speed passenger trains TALGO-250, consisting of four head and eighteen passenger cars totaling ˆ38 million. Uzbekistan Railways will bring the infrastructure of the section of the railway line between Tashkent and Samarqand in line with international requirements and standards to ensure efficient operation of the acquired high-speed passenger trains, including the construction and reconstruction of railway tracks and stations, two-way fencing, upgrading of the contact network.

The document also identifies financial sources for the acquisition of high-speed passenger trains: 50% of the cost of the contract will be provided by Uzbekistan Railways in foreign currency and 50% of the value of the contract through the loan of the Fund for Reconstruction and Development of the Republic of Uzbekistan refinanced by the National Bank for Foreign Economic Activity of the Republic of Uzbekistan, for 10 years including 2-year a grace period.

The decree also establishes the developer of the feasibility study of the project, the forecast schedule of repayment of principal and interest on the credit of the Fund for Reconstruction and Development of the Republic of Uzbekistan was approved. Uzbekistan Railways is exempt within the project from customs duties (except fees for customs clearance) for the imported equipment, value-added tax on works (services) performed by non-residents of Uzbekistan, tax on property purchased for high-speed passenger electric trains TALGO-250 for 5 years from the date of commissioning. Also there are other measures envisaged for the project.

Background

The purchase agreement on high-speed trains of Spain-based Patentes Talgo, S.L. along the route Tashkent-Samarqand was signed in July 2009 within the visit of Spanish Foreign Minister Miguel Angel Moratinos to Uzbekistan. The agreement provides for the organization of service trains, as well as training of drivers in Spain. The arrival of trains in Uzbekistan is scheduled for March-April 2011. The new trains will run between Tashkent and Samarqand at a speed of 250 km

hour. The Spanish trains will reduce the journey time by more than one-third. By the way, today high-speed train Registan travels this road (356 km) for 3.5 hours. Uzbekistan Railways during the 2009-2013 period is planning to invest $1.734 billion in the development and modernization of the railway industry, including $1.019 billion in rolling stock. (Source: Uzbekistan Today newspaper)

AMPLE PROSPECTS FOR PRIVATE BUSINESSES

Accelerated expansion of service industries and small businesses is among key priorities identified by President of the Republic in the system of anti-crisis actions. These measures include tax and credit incentives as well as deepening of institutional reforms to create more favorable environment for starting and running small and entrepreneurial businesses.

Agility of small businesses, their ability to relatively easily adapt to changes in market conditions and consumers’ demands make them an indispensable tool for creating new jobs and raising incomes.

Today, the “small sector” is not only a major unit of providing employment and income but also an important factor in ensuring stability of the economy. Its share in gross domestic product is steadily increasing. Small businesses achieved significant results in the export of manufactured products, and their range. More than two-thirds of the total employed population is engaged in this area. Small businesses have become an integral part of establishing the middle class property owners in Uzbekistan.

Recent years are significant in terms of cooperation of large and small businesses. Traditional Industrial Fair and Cooperation Exchange, held for the third time across the country, demonstrated that most of the products in demand by large enterprises and imported now from abroad, can be easily produced in our country, including by small and entrepreneurial businesses.

As President noted at the January meeting of the government, currently small businesses produce about 50% of gross domestic product, as compared to 30% in 2000. According to the National Statistics Committee, this sector employs more than 8.3 million people, or about 74% of all people employed in the economy. Moreover, small businesses provide more than 73% of cargo and more than 82% of passenger traffic of the country. This sector generates more than 45% of retail trade and services sector.

In 2010, it is projected to bring the share of small businesses in GDP to 52.5%. (Source: Uzbekistan Today newspaper)

SOCIETY

PROFESSIONAL TRAINING AS A MOTOR OF PROGRESS

Equipment of health facilities with modern medical outfit and the introduction of advanced methods of diagnostics and treatment require an appropriate qualification and training of medical staff. In this regard, an important role is allotted for the system of training and retraining. The decree of the Cabinet of Ministers of Uzbekistan of December 18, 2009 aimed at its improvement.

According to the document, methodological management of the process of training of medical professionals is implemented by the Tashkent Institute of Doctors Training and Tashkent Pharmaceutical Institute, as well as the Republican Center for Training and Specialization of Secondary Medical and Pharmaceutical Workers. Medical institutes of higher education, research institutes and specialized centers are directly engaged in training along with those institutions.

In addition, doctors specialize and train in clinical internship on the basis of these medical establishments. As was noted in the Ministry of Healthcare of Uzbekistan, at the present stage of public health improvement these are quite popular forms of education as staffing of the regional diversified medical centers and district associations that are intended to provide assistance in all medical fields continues.

Today, every medical worker, regardless of ownership of the institution where he works, is required at least once in every five years to pass direct training. The general courses include deep study of theoretical foundations of the medical specialty, training to new methods of diagnosis and treatment introduced in the republic. Thematic and short-term cycles are aimed at training doctors to new specific methods of diagnosis and treatment. Exit cycles are organized to train and consult doctors on places.

A system of continuous professional training has been developed. Standards of indirect types of training that are necessary for specialists in order to claim for the next medical category, and, consequently, higher wages have been established. This means that medical workers should constantly work to improve their skills through self-education, internships, participate in exchange of experience, and develop skills in information and communication technologies in special courses. Professional involvement in the seminars organized by the Ministry of Healthcare and its agencies are taken into consideration as well, where making a presentation is particularly valued.

At the modern stage of development of the professional training system, remote education finds wide application. Full-time-remote form of specialization of doctors is introduced. It creates the conditions for medical workers to study the theoretical foundations of a new specialty at home and attend the school only to learn the practical skills. The Internet is expected to increase the number of remote training courses on various specialties. Passing such courses would also be counted as indirect training. (Source: Uzbekistan Today newspaper)