February 22, 2010

Politics:
President of Uzbekistan meets with US Special Representative
Economics:
Giant Changes in Southern Air Harbor
Expanding Production Range
In Leading Positions
Society:
Practical Assistance for Lawyers
Public Inspection by Ecology Movement

POLICY

PRESIDENT OF UZBEKISTAN MEETS WITH US SPECIAL REPRESENTATIVE

President of Uzbekistan Islam Karimov met with Richard Holbrooke, US Special Representative for Afghanistan and Pakistan, at Oqsaroy on February 19, 2010.

Welcoming the prominent US diplomat, the head of Uzbekistan expressed the attitude of the country toward further development of Uzbek-American relations on a constructive basis to ensure peace and stability in Afghanistan.

Today, Uzbekistan supplies this country with energy, soft commodities, builds transportation system and provides aid in different spheres of socioeconomic reconstruction. For example, the volume of Uzbek energy supplied to Afghanistan has increased several times this year. Uzbek specialists construct the Hairaton – Mazari-Sharif railway. Large volumes of humanitarian goods and cargo are delivered to Afghanistan through the territory of Uzbekistan.

At the talk, Mr Holbrooke thanked the Uzbek leader for the warm welcome and underscored the interest of American administration in strengthening the mutual cooperation with Uzbekistan to maintain regional security. The US Special Representative stressed the particular importance of the position of Uzbekistan to address the Afghan conflict.

Prospects of bilateral cooperation development as well as other topics of mutual interest were discussed at the meeting. (Source: National News Agency UzA)

ECONOMY

GIANT CHANGES IN SOUTHERN AIR HARBOR

The Airport of Termiz that became international one in 2002 carries out large-scale efforts to strengthen the material-technical base, improve the quality of passenger service, air transportation safety.

Today, the most southern aviation hub of the country has a modern control tower, comfortable terminal building, spacious runway, weather station, facilities for aircraft maintenance.

Also, aircraft parking area here has been reconstructed and technical and administrative buildings are equipped with the latest computer and navigation technologies that significantly enhance the capacity of the airport in terms of organization of international flights.

It should be noted that the aircraft fleet there is updated annually here. For example, flights in local destinations are performed on modern cruise liner IL-114, while international destinations are serviced by Boeing and A-310 as well as IL-76 cargo aircraft. In addition, the airport which employs more than 300 people has passenger helicopters.

The airport has upgraded ground infrastructure, reconstructed runway and terminals for its efficient operation. The airport has an excellent staff of high-level specialists who ensure safety and reliability of flights and, consequently, promote the volume of cargo and passengers traffic.

“Last year our airport made more than 2,500 flights in different destinations, which is much more than those made in previous period,” said Ravshan Gulamov, director of Termiz International Airport.

According to the National Civil Aviation Development Program, the work on modernization and development of the material and technical base and ground infrastructure, reconstruction of air traffic control systems in Termiz International Airport will continue. This means that the passenger service and air safety will increase many times. (Source: Uzbekistan Today newspaper)

EXPANDING PRODUCTION RANGE

Uzbek-German joint venture Deutsche Kabel AG Tashkent is investing about $9 million in the modernization of production till the end of 2012. Within three years the joint venture is to implement the ten projects aimed at developing new designs of cable products and launching them into production.

In particular, the joint venture intends to organize production of different types of radio frequency cables on the basis of porous polyethylene. The enterprise is planning to produce solid tires and run a new line of patenting, annealing and galvanizing of steel wire 12-14 mm. The joint venture also plans to develop rolled molding of oxygen-free copper.

The project will enable to expand the range of production and markets for new products of Deutsche Kabel AG Tashkent. The projects will be funded from by the company.

UT Reference

Deutsche Kabel AG Tashkent was founded in 1999. The joint venture manufactures a wide range of cables and wires, medium-carbon steel wire, LAN-cables.

Currently, there are four companies producing cables in Uzbekistan. In addition to Deutsche Kabel AG Tashkent , these are Uzkabel the largest manufacturer of cables and wires in Central Asia, Andijonkabel and Hi-Tech Cable. (Source: Uzbekistan Today newspaper)

IN LEADING POSITIONS

The company has operated in the industry for one and a half decades and has a success story of its own. Along with a competent business plan and a team of professional staff, any successful business should enjoy a well arranged legislative framework as well as availability of preferences and tax incentives that promote an intensive development of foreign economic relations and stable growth of capacities. Established 15 years ago, Uzbek Leasing International A.O. has benefited from a perfect blend of all opportunities provided in this segment of financial market, and has become the leading company in the leasing industry.

Projects carried out over the years by Uzbek Leasing International A.O. have realized about 80 billion soums, and their number reaches three hundred. The company cooperates with the world’s leading manufacturers of various special vehicles and equipment. Among its partners, there are such well-known suppliers as Van de wiele (manufacturer of carpet weaving machinery), Hitachi (manufacturer of various special equipment), Caterpillar SARL (manufacturer of excavators and construction equipment), Meller Anlagenbau GmbH (manufacturer of battery elements and cells for industrial poultry farming), Husky Injection Molding Systems SA (manufacturer of injection-molding equipment for plastic products), Hyundau Heavy Industries CO. LTD (manufacturer of various special equipment), and many others. The purchased machinery and equipment is leased to domestic businesses. The demand for supplies increases every year, and this is seen in the financial and economic indicators of Uzbek Leasing International A.O. Three years ago the volume of the company’s leasing portfolio was a bit over 12 billion soums, while by the beginning of this year it has doubled and makes up more than 25 billion soums. The company is also raising other indicators. Total assets for the same period have increased three times and currently make up over 27 billion soums, while equity capital has reached 9.5 billion soums.

“Laws of any business suggest harsh terms for the development and improvement of the company’s structure,” said Zafar Mustafayev, director general of Uzbek Leasing International A.O. “Continuous monitoring of the market and conducted market research enables us to clearly analyze the situation in the market and build up sound short- and long-term development strategies. Uzbek Leasing International A.O. was created in accordance with the resolution of the Cabinet of Ministers of January 1, 1995. the Our founders are the National Bank for Foreign Economic Activity of Uzbekistan, Malaysia’s Maybank, European Bank for Reconstruction and Development and International Finance Corporation. At that time, the company was promoted owing to the cooperation with the Malaysia’s major banking and financial institution, Maybank Group, which is operating in 14 countries.

In accordance with the Agreement on Technical Assistance concluded by the shareholders, the company was run by specialists of Maybank till August 2001. Technical support was provided in such areas as the development of methodology for leasing operations, training and staff development. As part of further mutually beneficial cooperation, Maybank and NBU consider the option for increasing the size of the authorized capital of Uzbek Leasing International A.O. up to $20 million, as well as an additional $10 million credit line from Maybank. In addition, Maybank continues to provide assistance in personnel training to Uzbek Leasing International A.O. on the car leasing.

The projects are financed through the company’s own funds, shareholders and loans provided by shareholders, including the National Bank for Foreign Economic Activity of Uzbekistan, Malaysia’s Maybank, International Finance Corporation and others, as well as commercial banks and international financial institutions.

“We are willing to provide a wide range of leasing services for small businesses and private entrepreneurs, increase the production of consumer goods and services. The company operates in various sectors of the economy, covering heavy and light industry, construction, tourism and hotel business, processing of agricultural produce, medicine and pharmaceuticals,” said Zafar Mustafayev. “We are interested in projects on long-term financing for the procurement and use of technological equipment, attraction of advanced technologies within the leasing in priority sectors of Uzbek economy for increasing export capacity and the development of import substitution in industries. With such a positive spirit we are celebrating our fifteenth anniversary and planning to continue our successful business in Uzbekistan. (Source: Uzbekistan Today newspaper)

SOCIETY

PRACTICAL ASSISTANCE FOR LAWYERS

The Effective Legislation Monitoring Institute under the President of the Republic of Uzbekistan held a conference Legal Foundations for Advocacy, highlighting the issues of practical application of legislation and improvement of advocacy institution.

As Rakhim Khakimov, senior researcher of the Effective Legislation Monitoring Institute under the President of the Republic of Uzbekistan commented to UT, the conference aimed at the discussion of issues of practical application of national legislation on the further reformation and improvement of the advocacy institution and development of respective recommendation in this sphere. The conference gathered parliamentarians, senior staff of judicial and law enforcement bodies, advocacy, nongovernmental and noncommercial organizations, leading scientific research institutions and higher education establishments of law specialization.

The participants noted that guaranteeing of the effective protection of constitutional human rights and freedoms, the personal immunity and the right for the fair trial is the important task of the judicial system reform carried out in the republic.

The significant work has been done in the country over the last years on the reformation of the advocacy institution – the important component of the judicial system, enhancement of its role in guaranteeing of the effective human rights protection and building the democratic law-governed state and powerful civil society. They have ensured the organizational independence of advocacy, improved the system of stuffing it with highly qualified personnel. The Lawyer Chamber, comprising the integral self-government advocacy system, was established.

The abovementioned measures on raising the prestige and authority of advocacy ensured the effective exercise of civil rights for professional legal assistance on any stage of the legal procedure, raise of efficiency and quality of the prejudicial inquiry, expansion of procedural guarantees of respect of the trial participants’ rights.

The presentation of the theoretical and practical manual Legal Foundations for Advocacy compiled by the specialists of the Effective Legislation Monitoring Institute under the President of the Republic of Uzbekistan took place within the conference. It is aimed to assist lawyers, prosecutors, investigators and other representatives of law enforcement bodies in effective application of legislative acts adopted within the improvement of the advocacy institution. (Source: Uzbekistan Today newspaper)

PUBLIC INSPECTION BY ECOLOGY MOVEMENT

The Ecology Movement held a series of meetings with representatives of public organizations last year in the regions of Uzbekistan, where they discussed the analytical information provided by representatives of supervising bodies on nature protection as well as reports by senior executives of national environmental programs.

The movement conducted similar meetings in the Republic of Karakalpakstan, Andijon, Namangan, Tashkent regions and the capital. Basing on extended discussion, deputies of the Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan, representatives of ministries and agencies, local authorities, heads and employees of enterprises and ecology scientists worked out some recommendations aimed at the efficiency enhancement of measures on nature protection.

Besides, the Ecology Movement launched a hotline in June 2009 to enhance the effectiveness of the public inspection. The hotline accepts information about breaches in nature protection, sanitary, hygiene and epidemiological activities from citizens and organizations from the whole country.

The Ecology Movement lays a stress to the support of civil initiatives and local plans of action aiming at the improvement of the environmental situation and socioeconomic conditions of life in rural areas. (Source: Uzbekistan Today newspaper)