21 August, 2006

Politics
Uzbek president receives Moroccan Agriculture Minister

Economics
Foreign trade turnover of Uzbekistan grows by 4.6% in 1 half 2006
Uzbekugol produces 1.7mln tonnes of coal in 1 half 2006
240 enterprises privatized in Uzbekistan in Jan-Jun 2006
217 ineffective textile enterprises liquidated in Uzbekistan
Retail trade turnover in Uzbekistan rises by 11.6% in 1H 2006
Nekapress-Plus JV to produce paper for Uzbek national currency
Uzbek capital to host cotton fair in October
MTS, Uzdunrobita amend outstanding option
Russian company acquires Uzbek cement producer - report
Chinese Citi Pacific Ltd, UzKimyoSanoat launch soda ash production
Tourism and ecotourism for sustainable development

Society
Uzbek Art Academy, Belgium Royal Museum sign protocol of cooperation


POLITICS

UZBEK PRESIDENT RECEIVES MOROCCAN AGRICULTURE MINISTER

President of Uzbekistan Islam Karimov received Minister of Agriculture, Rural Development and Fisheries of Kingdom of Morocco Muhammad Lanser at presidential residence Oqsaroy on 18 August.

Welcoming the guest, Uzbek president said though two countries geographically are far apart, they have many similar sides. In particular, it is necessary to note similarity of cultures, traditions and general religion, he said.

Mohammed Lanser expressed his gratitude to President Islam Karimov for warm reception and said Morocco is interested in development of cooperation with Uzbekistan. The Moroccan official delivered to Uzbek leader Islam Karimov the message of King of Morocco Mohammed VI.

During the talk the sides exchanged opinions on the issues of development of cooperation between two countries.

On the same day, the delegation of Morocco met with Uzbek Agriculture and Water Management Minister S Ismoilov.

The sides exchanged opinion on cooperation in agriculture, purchase of agriculture machinery from Uzbekistan and exchange of specialists.

ECONOMICS

FOREIGN TRADE TURNOVER OF UZBEKISTAN GROWS BY 4.6% IN 1 HALF 2006

Foreign trade turnover of Uzbekistan made up US$5,059.3 million in the first half of 2006, State Statistics Committee of Uzbekistan said.

The report said that the Uzbek foreign trade turnover figure grew by 4.6% year-on-year compared with the same period of 2005.

The aggregate volume of exports increased by 5.2% and comprised US$2,971.2 million. The volume of imports made up US$2,088.1 million, which is 3.6% more against the first half of 2005.

According to official statistics, Uzbekistan achieved positive foreign trade turnover balance worth a total of US$883.1 million in the reporting period.

UZBEKUGOL PRODUCES 1.7 MLN TONNES OF COAL IN 1 HALF 2006

Uzbekugol (Uzbek Coal) joint-stock company increased production of coal by 8.5% to 1.709 million tonnes in January-June 2006, including production of brown coal roe by 2.8% and bituminous coal by 2.2 times, according to Uzbek State Statistics Committee. According to data of State Committee on Geology and Mineral Resources, Uzbekistan possesses 1.9 billion tonnes of coal reserves. According to forecasts, the resources comprise over 5.7 billion tonnes of coal.

The country is realizing programme for further development of coal industry for 2002-2010. The programme envisages re-equipment and reconstruction of Angren and Apartak coal mines. Total investments will make up US$254.2 million, including US$15.1 million of foreign credits.

Re-equipment of Angren mine will allow to increase production of coal from 2.1 million tonnes in 2001 to 7.8 million tonnes in 2010. The cost price will decrease from U$10.38 in 2001 to US$7.85 in 2010.

German Krupp Ferdertehnic GmBH and MAN Takraf are participating in realization of this project. The German banks are financing the project.

Reconstruction of Apartak mine stipulates construction of loading railway station. The production of coal in mine will grew from 214,000 tonnes in 2001 to 1.5 million tonnes in 2010. The cost price will decrease from U$10.47 in 2001 to US$6.66 in 2010.

240 ENTERPRISES PRIVATIZED IN UZBEKISTAN IN JAN-JUN 2006

During the reporting period, in line with the Denationalisation and Privatisation Programme 240 companies were sold for private ownership (107.1% against the target set), Uzbek State Statistics Committee said.

The total earnings from the denationalization and privatization totaled 32.7 billion soums, including US$23.3 million of foreign investments (61.1% of the yearly forecast). Of the total of 115 enterprises included in the Programme of sale at zero redemption value, trades were held on 108 objects. Of them 107 were sold with the investment obligations totaling 12.8 billion soums.

In the first half of 2006, the aggregate turnover of the secondary stock market made up 92.31 billion soums (up 2.8 times against the first half of 2005). The share of the secondary market in the total stock turnover made up 54.2% (compared to 40.9% in the corresponding period of the preceding year).

217 INEFFECTIVE TEXTILE ENTERPRISES LIQUIDATED IN UZBEKISTAN

Measures on restructuring and financial recovery covered 674 enterprises, including 168 companies on which programmes were developed in the first half of 2006, according to report of State Statistics Committee of Uzbekistan.

Bankruptcy procedures were initiated in respect of 24 enterprises, 14 companies were removed from the register of legal entities in connection with their merge. Moreover, 217 ineffective enterprises of textile industry were liquidated.

As a result of taken measures, indicators of production and financial activity improved in 450 enterprises (70% of their total number). 328 enterprises (or 51% of their total number) increased production volumes by 20%. 98 out of 187 enterprises went out of economic insolvency state, 62 out of 92 companies got rid of unprofitableness. 89 new productions were created in Uzbekistan in the reporting period on the basis of free capacities of restructured enterprises. 10,331 new work places were created as well.

RETAIL TRADE TURNOVER IN UZBEKISTAN RISES BY 11.6% IN 1 HALF 2006

Increased growth rate of industrial production, primarily consumer goods, has spurred a rise in the retail trade turnover of 11.6%. The tendency is observed across all regions of the republic.

State Statistics Committee of Uzbekistan said that the network of wholesale trade enterprises, mini-banks and other market infrastructure entities has been expanded. Uzulgurjisavdoinvest Association of Wholesale Trade Companies has opened 23 regional, district and inter-district specialized wholesale trade bases.

During the reporting period, regional and industry-specific service development programmes were worked out and approved. For the purpose of monitoring and supervision, quarterly targets were established for the year 2006.

The volume of paid services provided to the population during the first half of 2006 has increased by 13.3% against the same period of the preceding year, thereby totaling 889.1 billion soums.

NEKAPRESS-PLUS JV TO PRODUCE PAPER FOR UZBEK NATIONAL CURRENCY

New Uzbek-Swiss joint venture Nekapress-Plus has opened in Tashkent region. The company will specialize in the processing of wastes of gin plants. This was reported by Davlat Belgisi State Unitary Company. The new JV will apply Swiss technology to linter the remains of small fibre for their further processing into special fabric, a resource for the production of banknotes.

The founders of the joint venture are Dalvarzintamir Open Joint-Stock Company (Uzbekistan) and SAPT AG (Switzerland). The investments made by the Swiss company have so far totled US$240,000.

The new JV is to process up to 4,200 tonnes of cotton wastes into some 1,000 tonnes of finished product monthly.

Nekapress-Plus JV has already signed four contracts with the companies of CIS.

Apart from supplying finished products to Davlat Belgisi State Unitary Company, which has been producing Uzbek national currency, soums, since 1997, 70% of the output will be exported.

UZBEK CAPITAL TO HOST COTTON FAIR IN OCTOBER

The Second International Uzbek Cotton Fair will take place in Tashkent on 17-18 October 2006.

The Uzbek government in cooperation with International Cotton Advisory Committee and Cotton Outlook are organizers of the event.

Primary goals of the fair are concluding concrete businesses and strengthening of long term partnership in cotton trade, as well as to familiarize the Uzbek cotton consumers with its quality characteristics, latest novelty in cotton production, trading practices and logistics.

Large volumes of Uzbek cotton will be exposed at the Cotton Fair. Moreover participants will have an opportunity to enter to the long-term agreements with Uzbek exporters for the future crops.

MTS, UZDUNROBITA AMEND OUTSTANDING OPTION

Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the CIS, announced on 18 August signing an amendment to the outstanding option on the remaining 26% stake in Uzdunrobita.

The company first acquired a 74% stake in Uzdunrobita for US$121.0 million from two private companies in August 2004. As it was announced at the time of the transaction, MTS also signed a three year put and call agreement with all the existing shareholders of the Uzbek company to purchase the remaining 26% stake for a minimum price of US$37.7 million to become the sole owner of the company.

The amendment to the original option agreement eliminates the call option, yet extends the exercise period of the put option to 14 July 2008. The purchase price for the put option will be determined by an international investment bank to be selected jointly by both parties within 10 days of the date of service of a put notice. These changes were made in accordance with the wishes of all sides to maintain and develop a mutually beneficial partnership as demonstrated by the strong results of Uzdunrobita, MTS said.

Uzdunrobita is the largest mobile phone operator in Uzbekistan with approximately 894.8 thousand subscribers as of July 31, 2006. The company holds GSM licenses for the entire territory of the country. Uzdunrobita started to render services under MTS-Uzbekistan brand.

RUSSIAN COMPANY ACQUIRES UZBEK CEMENT PRODUCER - REPORT

Russian Eurocement Group purchased Ahangarancement OJSC, the second largest cement producer of Uzbekistan, Russian business daily Vedomosti reported on 21 August.

The newspaper said the source in Russian company presented information on the deal, while Ahangaran city administration confirmed it. The report said Sergey Marchenko appointed as director-general of the enterprise.

The main shareholders of the company were Bentonit, Uzbek-US venture, (49.9%) and Zeromax (25.6%)

CHINESE CITI PACIFIC LTD, UZKIMYOSANOAT LAUNCH SODA ASH PRODUCTION

Chinese Citi Pacific Ltd and UzKimyoSanoat (Uzbek Chemical Industry) have launched the production of soda ash in Uzbekistan. The new Kungrad Soda Plant cost the founders US$100 million, a source in UzKimyoSanoat told Interfax.

The projected production capacity of the plant is 100,000 tonnes of soda ash yearly. In accordance with the contract signed with UzKimyoSanoat, Citic Pacific Ltd did the designing and turn-key construction of the technological part of the plant worth US$32.3 million. The technological part of the project was funded by a loan of the Industrial and Commercial Bank of China (90% of the contract cost) with the insurance provided by the Chinese Export and Credit Insurance Corporation, and a loan of the UzPromStroyBank (Uzbek Industrial Construction Bank, 10% of the contract cost) guaranteed by the Uzbek government.

General construction works were performed by local construction companies at the expense of UzKimyoSanoat's own funds.

According the source in the agency, the production of Kungrad Soda Plant will be capable of covering both the domestic demand for the soda ash, and the export of soda ash, hydrate of sodium, and table salt.

At this time, Uzbekistan's domestic demand for soda ash is estimated at 60,000-70,000 tonnes yearly. The main consumers are companies of the household chemical industry and the producers of construction materials, including the producers of different types of glass.

The resource base for Kungrad Soda Plant is Barsakelmes deposit of table salt (explored reserves estimated at 131 million tonnes of table salt containing 97% of NaCl) and Jamansay deposit of limestone (explored reserves estimated at 70 million tonnes) located in Karakalpakstan Republic.

TOURISM AND ECOTOURISM FOR SUSTAINABLE DEVELOPMENT

Pursuant to the Resolution of the President of Uzbekistan "On measures to speed up the development of the services sphere in the Republic of Uzbekistan for 2006-2010" and in the framework of the "ECOSAN Programme on the development of service in ecological tourism for 2006-2010", the marathon of eco-festivals entitled "Tourism and ecotourism for sustainable development" is taking place in July-August 2006 on the initiative of the ECOSAN International Organisation.

The aim of the event is to demonstrate the successes achieved by Uzbekistan over the years of independence, promote tourism and ecotourism potential of the country, and thereby develop the domestic ecological tourism stimulating sustainable development, improvement of the ecological situation, higher employment of the population, as well as active assistance to conservation of natural and cultural heritage.

The eco-festivals have already been conducted in Tashkent, Nukus, Navoi, Bukhara, Ferghana, and Shahrisabz. On 19 August, the turn will come to Andijan. The eco-festival will take place in Alisher Navoi Park of the city. The programme includes thematic exhibition "Tourism and ecotourism for sustainable development", a presentation of the eco-tourist routes and a concert of the artists of the region.

SOCIETY

UZBEK ART ACADEMY, BELGIUM ROYAL MUSEUM SIGN PROTOCOL OF COOPERATION

Uzbek Art Academy and the Royal Museum of Art and History in Belgium signed a protocol of cooperation to organize exhibition "Samarkand in crossroads of Great Silk Road, treasures of museum of Uzbekistan" on 17 August.

The document was signed by leadership of Uzbek Art Academy and Director-General of the Royal Museum of Art and History in Belgium, a scientist with the world name, archaeologist, the author of over 250 scientific works, Anne Cahen-Delhaye.

The protocol became the first stage on preparation of materials to sign corresponding agreements on preparation of series of events within cooperation programme of scientist, craftsmen, artists and others. It is expected that the large art exhibition will be held in Belgium in 2009 and later in other states of Europe and North America.