2 July, 2006

Politics
Uzbek head creates group to develop legislation for death penalty abolishment
Uzbekistan, Latvia sign economic cooperation accord
Members of Chinese delegation meet state officials
Afghan MPs visit Uzbekistan's Islamic institutions

Economics
LUKOIL Overseas starts development drilling on Khauzak block in Uzbekistan
Food safety standards and management systems discussed
UNDP presents its two projects to foreign missions
Asaka to receive $10-mln idb credit
Uzbekistan to complete $155 mln railroad modernization in 2006
Ipoteka Bank finances initiatives of agricultural enterprises

Society
Uzbekistan intensifies measures to counteract violators of law on protection of nature
Traffic Safety Month finishes in Uzbekistan
"Youth – against drug abuse" festival held in Ferghana
LG awards winners of contest "The Best Idea of the Year 2006"
Great Silk Road: Traditions and Culture
Uzbek wrestlers took part in the final tournament on free-style wrestling "Golden Grand Prix" in Baku

POLITICS

UZBEK HEAD CREATES GROUP TO DEVELOP LEGISLATION FOR DEATH PENALTY ABOLISHMENT

Uzbek President Islam Karimov signed an order on additional measures on preparation of legislation, normative-legal acts, which should be adopted in connection with abolishment of death penalty in Uzbekistan on 29 June.

The Uzbek leader created a working group, which will develop legislation and normative-legal acts, which should be adopted in connection with abolishment of death penalty in the country.

The working group, led by Uzbek Justice Minister Buritosh Mustafoev, was entrusted in a month term to develop schedule of preparation of legislative and normative-legal acts to enforce decree of Uzbek President "On abolishment of death penalty in Uzbekistan" dated 1 August 2005 and step-by-step submission of legislative documents to Oliy Majlis of Uzbekistan (parliament) till the end of 2006.

The document said the group should pay special attention to changes and amendments to Crime, Crime- Procedural Codes of Uzbekistan, in connection with abolishment of death penalty from punishment system, and it should pay attention to development of clear determination for life imprisonment and long-term imprisonment, as well as list of crimes, for which these punishments will follow.

As earlier reported, the decree dated 1 August 2005 abolished death penalty in Uzbekistan from 1 January 2008. The document said the death penalty will be changed with for life imprisonment and long-term imprisonment.

Currently, the death penalty in Uzbekistan used against premeditated murder in aggravating circumstances and terrorism. (UzReport.com)

UZBEKISTAN, LATVIA SIGN ECONOMIC COOPERATION ACCORD

An intergovernmental agreement between Latvia and Uzbekistan on economic and industrial cooperation was signed on 29 June. The Latvian Ministry of Economics told a correspondent that the document was signed in Riga during a meeting between the state secretary of the Latvian Economics Ministry, Kaspars Gerhards, and the first deputy foreign minister of Uzbekistan, Eson Mustafayev. (Regnum news agency)

MEMBERS OF CHINESE DELEGATION MEET STATE OFFICIALS

On 30 June, a delegation visiting Uzbekistan led by chairman of the Society of Lawyers of People's Republic of China, had meetings in several ministries and organizations.

At a meeting with the first vice-Chairman of the Supreme Court of Republic Uzbekistan, Tashmatov, development of relations between Uzbekistan and China in all spheres was discussed.

Members of delegation led by of Han Jubin met with Prosecutor General Kodirov and the First deputy Minister of Justice Abdullayev.

During the meetings relations between these state bodies and the Society of Lawyers of China were discussed. (UzA - National Information Agency of Uzbekistan)

AFGHAN MPS VISIT UZBEKISTAN'S ISLAMIC INSTITUTIONS

The delegation of Afghan MPs headed by Sebghatollah Mojaddedi, the head of the Afghan parliament's Senate, visited Tashkent Islamic University today.

A meeting with the visitors spoke about university classes and conditions created in our country for religion, and religious interactions.

After that, the delegation members learnt about the process of foreign language teaching and talked to students. The visitors were interested in e-versions of the Koran and the Hadith which were developed by university students.

Then, a meeting was held between the visitors and university teachers and students. During the meeting, it was stressed that this kind of university served as a basis for training many scholars in various fields.

As part of the visit, the guests also visited the Board of Muslims today. They were informed about the work that has been done in the field of religion in the years of independence.

Sebghatollah Mojaddedi, head of the Afghan parliament's Senate, said that the delegation have heard about the many changes being made in Uzbekistan and made sure of them after coming here. During visits to Termiz, Tashkent, Samarqand, Buxoro and Khiva, the Afghan guests witnessed that not only have historical heritage and the names of great scholars been restored but also memorials have been built for them. Of course, this happened because of President Islom Karimov's efforts and attention. This work was done so well that it can serve as an example for others. (UzReport.com)

ECONOMICS

LUKOIL OVERSEAS STARTS DEVELOPMENT DRILLING ON KHAUZAK BLOCK IN UZBEKISTAN

Today LUKOIL Overseas has started the drilling of development wells in accordance with the field development plan of the Khauzak contract area of Dengizkul gas field (southwestern part of Republic of Uzbekistan), LUKOIL said in its release.

Development of this field makes part of the Kandym-Khauzak-Shady-Kungrad PSA project. The PSA on the project was signed on 16 June 2004 in Tashkent in the presence of the presidents of Russia and Uzbekistan and came into force on 24 November 2004. The project is being implemented by a consortium of investors, which includes LUKOIL Overseas (90%) and Uzbekneftegaz (10%). The consortium's share in profit production is 50%.

The duration of the PSA is 35 years. The volume of approved original gas in place in the contract area totals 329 billion cubic meters. Commercial production is expected to start in the fourth quarter of 2007. Peak annual production of natural gas will exceed 10 billion cubic meters, while cumulative production under the project could reach 207 billion cubic meters of gas.

An operating company, LUKOIL Uzbekistan Operating, has been established for project management purposes. In the future LUKOIL will also create a marketing company for joint sales of production (including the share of the Uzbek party).

To date, a 3D field seismic survey has been completed on the Khauzak block, group designs for construction of development wells has been drafted, and construction of power lines, access road and preparation for the workover of three wells is in progress. China drilling company TUHA, the winning bidder at the corresponding tender, is the drilling contractor. Horizontal well's depth - 3000 m, drilling time – 4 months. 37 new development wells will be drilled on Khauzak, the company said.

In total, Kandym-Khauzak-Shady-Kungrad project involves drilling of more than 180 development wells and construction of over 1,500 kilometers of pipelines. Two compressor stations, gathering points, shift camps, high-voltage power lines, a 40-kilometer railway line, motor roads and access roads will also be constructed. The project also involves construction of a modern gas processing plant in the Kandym area with a capacity of 8 billion cubic meters of gas per year. In total, investment under the PSA to date is around US$100 million. (UzReport.com)

FOOD SAFETY STANDARDS AND MANAGEMENT SYSTEMS DISCUSSED

Participants of the Second International Conference on Management Systems entitled "The Role of Quality in Fulfilment of Uzbekistan's National Interests" discussed food safety management systems.

"Today's consumers set very high food safety requirement. Not only does a consumer want high quality food, but he or she also wants to be confident about its safety," said the leading consultant of Katri Vostok Company E. Gamaley in his report "Implementing HACCP ISO22000 standard".

HACCP (Hazard Analysis and Critical Control Points) is used mainly by food producing companies.

E. Gamaley suggested that the companies, along with the ISO 9001:2000 international standard, independently implement HACCP (ISO22000) standard, as the system has not yet been widely adopted by Uzbek companies. At the same time Gamaley emphasized that "This is one of the most efficient management systems in food production around the world. It ensures control at all stages of food chain, at any point of the production process."

By implementing HACCP based food safety management system a company would reinforce consumers' confidence in the food's compliance with the hygiene and safety requirements.

Thus, by reducing the risk of financial losses associated with the withdrawal of food reported as dangerous and lawsuits, but provides advantages in entering the world market. (UzReport.com)

UNDP PRESENTS ITS TWO PROJECTS TO FOREIGN MISSIONS

Presentation on activity of UNDP projects "Reform of tax system and development of new edition of Tax Code" and "Improvement of tax administration in Uzbekistan" on 5 July. The presentation is organized for diplomatic corps and representatives of international organizations.

The aim of the event is improve awareness of foreign missions in Uzbekistan with achievements of tax projects of UNDP, carried out in cooperation with the Uzbek government and directed to reform tax sphere.

The event also targets expansion of dialogue on tax reforms in Uzbekistan, determine priorities of technical assistance in this sphere, inform international community on course of economic reforms and form positive image of Uzbekistan in international arena. (UzReport.com)

ASAKA TO RECEIVE $10-MLN IDB CREDIT

The Uzbek bank Asaka plans to receive a credit from the Islamic Development Bank to finance projects in the small business and private enterprise sectors, a source in the bank told Interfax.

The source said that preliminary agreement has been reached to open a credit line, which would probably amount to $10 billion.

The credit will finance the import of equipment and technology. According to the preliminary agreement, the share equity of the borrower, furnished in the form of production infrastructure, machinery and equipment or cash to cover financial expenditure in the pre-production period, should amount to not less than 25% of the initial cost of the project

Asaka, the country's second largest bank by charter capital, was formed in 1996 to serve the automobile industry in Uzbekistan. The Finance Ministry owns 98.33% and Uzavtoprom owns 1.67%.

Assets to IAS grew 8.3% last year to 599.2 billion sum, the loan portfolio grew 15.9% to 429 billion sum, liabilities grew 11.5% to 439.1 billion sum, equity capital grew 0.4% to 160.1 billion sum, and net profit was down 11.7% to 1.179 billion sum.

The government plans in late 2006 or early 2007 to hold a tender for 51% of Asaka to be sold to a foreign investor.

Uzbekistan plans to get $456.5 million from the Islamic Development Bank, which it joined in September 2003 for 16 investment projects in 2004 - 2007 in transport infrastructure, energy, utilities, education, healthcare, and small business worth $853.8 million. (The Times of Central Asia)

UZBEKISTAN TO COMPLETE $155 MLN RAILROAD MODERNIZATION IN 2006

Uzbekistan Temir Yullary, the state railroad company, will complete the modernization of the Samarkand - Khadzhidavlet railroad this year under a project worth $155 million.

The project includes the rehabilitation of 341 kilometers of railroad that is part of the Central Asian railroad and is of strategic importance for the economy.

A fiber optic line will also be built under the project.

The project will be financed with loans from the Asian Development Bank worth $70 million and the OPEC Fund worth $5 million. The company will also use its own money for the project.

The project will complete the rehabilitation program begun in 1999. The Chingeldy-Tashkent-Samarkand railroad stretching 320 kilometers was reconstructed for $126 million under the program in 2004. The Asian Development Bank provided $70 million for that project.

The program will significantly increase the effectiveness of cargo and passenger transport and increase the average speed for passenger trains to 100 km/hour and to 90 km/hour for cargo trains. (The Times of Central Asia)

IPOTEKA BANK FINANCES INITIATIVES OF AGRICULTURAL ENTERPRISES

One of the priority areas of government's attention in Uzbekistan is agriculture. Thus, efforts are given to improve the industry's financial-technical foundation, particularly through the attraction of foreign investments to support agricultural enterprises.

Ipoteka Bank (Mortgage Bank) puts great effort to support the government's initiative. During the first quarter of this year, the bank attracted the credit lines of the World Bank and Asian Development Bank. In the framework of the projects aimed at supporting agricultural enterprises, the bank appropriated the loans of ADB for the total amount of US$3.1 million and the loans of the World Bank totaling US$300,000.

At this time, Ipoteka Bank's leading portfolio has reached 3 billion soums. Finance projects worth 420 million soums envision the development of agricultural industry, particularly procurement of tractors, cultivators, seeders produced by the Tashkent Tractor Plant. Moreover 1.5 billion soums were appropriated for the procurement of modern technology produced abroad.

In addition, during the first six months of the year, the bank used the funds attracted from foreign financial structures to issue micro-loans for the development of production, personal services sphere, agriculture and construction. The micro-loans issued aggregated to 1.15 billion soums. The balance on these loans makes up 2.6 billion soums. (UzReport.com).

SOCIETY

UZBEKISTAN INTENSIFIES MEASURES TO COUNTERACT VIOLATORS OF LAW ON PROTECTION OF NATURE

Uzbekistan intensified measures to counteract the violators of the legislation on protection of nature. "In the recent years, penalty measures applied to those who cause harm to the flora of Uzbekistan have been toughened," said the head of the department of Tashkent City Nature Committee Dilbar Alimova.

In the cases of illegal felling the "committee for protection of nature applies the most strict sanctions up to criminal responsibility," she said.

Thus, in 2005, claims for the total of 35 million soums were filed for the damages caused to flora. Based on these facts, 11 criminal lawsuits were started. 103 people paid the penalty fines of 572,500 soums. During the first half of the year, the claims were filed against the violators for the total of 25.8 million soums. Two criminal cases were filed based on the facts of damage caused to nature for the total amount of 291,600 soums charged from 63 people.

Tashkent city khokimiat (city hall) is also taking measures for the planting of greenery in the city. In 2005-2006, over 135,000 young decorative plants, 122,000 fruit trees, 10,500 conifers, 765,000 poplars, and 6,000 bushes were planted around the city. In 2005, the fund for protection of nature spent 7 million soums for the planting of greenery in the city. In 2006, the figure is expected to total 10 million soums. Some 13 million soums have been appropriated for the development of the Botanical garden of the Science Academy of Uzbekistan and creation of the nursery of rare decorative trees.

Alimova also spoke about the problems associated with the caring after the perennial plants.

"The main problem is the lack of financing on the part of the structures concerned. In particular, for several years now there is practically now support from the Plant Protection Station, agency responsible for the treatment of greeneries and fight against pests. It is planned that the service will be recovered in 2007," said the representative of Tashkent city Nature Committee. (UzReport.com)

TRAFFIC SAFETY MONTH FINISHES IN UZBEKISTAN

The month of June, designated by the Cabinet of Ministers of Uzbekistan as Traffic Safety Month, has ended. A number of special events were organised and measures were taken in the framework of the month.

For the purpose of ensuring safety or road traffic, preventing accidents, including those involving children, the staff of the Traffic Safety Department of the Head Department of Internal Affairs of the city of Tashkent held numerous meetings in all educational facilities, at motor companies and mahallas (local communities). The condition of bus stops located close to schools and pre-school facilities, and road signs and traffic lights was checked.

Moreover, taken under consideration the fact that traffic safety largely depends on drivers' strict adherence to the rules, a large awareness-raising campaign was conducted. As a result of inspections conducted, measures were taken to eliminate the shortcomings. Although the Traffic Safety Month has ended, the workers of the Traffic Safety Department do not reduce their efforts. (UzA - National Information Agency of Uzbekistan)

"YOUTH – AGAINST DRUG ABUSE" FESTIVAL HELD IN FERGHANA

Uzbekistan is taking strong measures to fight drug abuse. Nevertheless, the issue requires close attention and constant reinforcement of counteraction, including the intensification of awareness-raising campaigns

As an example of such campaigns, the festival entitled "Youth – against drug abuse" was held at the youth center of culture and sport of Ferghana city.

In the framework of the event, university and secondary school students competed in making posters themed "We are for healthy lifestyle". The representatives of Ferghana Polytechnic Institute and the Art College won the first prize. (UzA - National Information Agency of Uzbekistan)

LG AWARDS WINNERS OF CONTEST "THE BEST IDEA OF THE YEAR 2006"

On 30 June, the winners of the contest "The Best Idea of the Year 2006" received awards at the Office of the Central Council of youth community movement "Kamolot". LG Electronics Office in Uzbekistan together with the "Kamolot" YCM hosted the event. Deputy Head of the LG Electronics Office in Uzbekistan Mr Jang Ki El said the main objective of the contest was to uncover talented and creative youth and assist in the development of their ideas and proposals

With annual sales turnover consisting of US$35 billion, LG Electronics is on a stage of a rapid expansion and is considered as a leader in digital convergence. Reaching the third position in the world's mobile communications production, LG coordinates 76 companies in all parts of the world, including Uzbekistan.

Alongside with product promotion, LG Electronics pays a special attention to the realization of various social projects. LG believes that its engagement in supporting initiatives of Uzbekistan's youth is part of its duty to the community.

During the first round 138 works were received presenting the candidates' creative ideas and proposals. A special committee of judges was formed and the works were considered according to their originality, effectiveness, innovation and simplicity of implementation. 16 candidates who were marked above 60 points advanced to the second round.

At the second round nominees justified their works and demonstrated the effectiveness and practicality of their ideas during short 10-15 minute presentations and were judged by a special organizational committee based on 100-points marking scale. Handing the prizes to the first age group (under 11), the Chairman of the "Kamolot" YCM Botir Ubaydullaev said that the number of candidates who submitted their works was higher than during the preceding year, indicating a growing popularity of the contest. The winner of the personal computer, the author of the best idea Kuvanch Davletov, was selected by the jury among the 9 winners of the contest as the best candidate for the "Grand-Prix 2006" bonus awarded to the author of the best idea, which included the "Trip to Korea". (UzReport.com)

GREAT SILK ROAD: TRADITIONS AND CULTURE

Costumes exhibition entitled "Great Silk Road: traditions and culture" opened at the central showroom of the Arts Academy of Uzbekistan.

The Embassy of Korea in Tashkent, Ministry for Cultural Affairs and Sport of Uzbekistan, Korean Association of Fashion Designers and the Arts Academy of Uzbekistan organized the event. Ambassador Extraordinary and Plenipotentiary of Korea to Uzbekistan Moon Ha Yong opened the exhibition.

This unique exposition includes over 50 national attires designed by the modellers of Uzbekistan, South Korea, Turkey and Azerbaijan.

Opening the exhibition, the organizers noted the similarity of cultures, traditions, and customs of these nations, as well as the great importance the ancient Silk Road had in strengthening trade, economic, and cultural relations of the countries.

In the framework of the exhibition, the National Institute of Art and Design named after Behzod hosted the meeting of Uzbek and Korean masters with the students.

A concert of the artists of the two countries and a demonstration of traditional costumes were held. A special workshop was organized for the Uzbek designer-modelers at the Republic College of National Design. (UzReport.com)

UZBEK WRESTLERS TOOK PART IN THE FINAL TOURNAMENT ON FREE-STYLE WRESTLING "GOLDEN GRAND PRIX" IN BAKU

The final tournament in free-style wrestling "Golden Grand Prix" or so called the small world championship was organized in Baku, Azerbaijan.

From four of Uzbek wrestlers, participating at these competitions only Adham Achilov has unsuccessfully acted and lost his first fight.

Abdulla Ammaev reached the fourth result (up to 74 kg). Dilshod Mansurov (55 kg) and super heavyweight Arthur Taymazov (over 120 kg) won Gold medals. (Press-info.uz News Agency)