March 06, 2011

Economy:
Reconstruction of Novo-Angren thermal power station continues
Uzbekneftegaz sums up 2010 results
Uzbekistan announces tender for reconstruction of national highway
Uzbekneftegaz announces tender for radial drilling services of 70 wells
Uzbekyengilsanoat issues shares for 8.873bn soums
Uzbekistan adopts measures to satisfy internal market with local medicaments
External trade turnover of enterprises with foreign capital reach US$5.385bn
Number of small enterprises and microfirms grows to 232,000 units

Society:
Uzbekistan develops national programme on well-being of children for 2011-2014

Sport:
Davis Cup: Denis Istomin wins second point for Uzbekistan
Davis Cup: Farrukh Dustov earns first point for Uzbekistan
Feather in the cap for Uzbekistan
Uzbekistan to host 2012 FIFA U-20 Women's World Cup

ECONOMY

Reconstruction of Novo-Angren thermal power station continues

Works on reconstruction of Novo-Angren thermal power station, transferring power-generating units to use of coal, has been started. The project, implemented with attraction of foreign capital, is directed at increasing share of coal in fuel-energy balance.

In June 2010, the Uzbek president signed a resolution “On measures on implementing investment project “Transfer of power-generating units No. 1-5 of the Novo-Angren thermal power station to annual burning of coal (stage 1) with modernization of Angren mine”.

The feasibility study with calculated cost for US$213.74 million were developed and approved. The project will be financed due to own resources of Uzbekenergo state joint stock company, loan of China Eximbank and credit of the Fund for Reconstruction and Development of Uzbekistan.

The government exempted Uzbekenergo, Novo-Angren thermal power station and Uzbekugol from payment of customs duties for imported equipment and materials (except registration fee) till 1 January 2013.

Pravda Vostoka reported that the reconstruction of Angren coal mine is underway now. Its production capacities make up 3.2 million tonnes of coal a year. The modernization will allow to replace old-dated equipment and double coal mining by 2012. At the same time, Novo-Angren thermal power station will consume 5.2 million tonnes of coal instead of 2.2 million tonnes. This will allow to save 825 million cubic meters of natural gas.

Russian IZ-Karteks supplied first excavator to the Angren mine. The excavator was assembled by specialists of Repair Mining-Transport Equipment.

The supply of equipment within the project is continuing. The Russian company sent spare parts for the second excavator and they arrived in Uzbekistan. The assembly of the excavator is underway.

Deputy senior engineer on production of Uzbekugol OJSC Aliqul Urunbaev said that overall it is planned to buy 46 units of equipment for stripping and coal mining works, 20 units additional equipment and technologies for equipping newly created machine-shops.

Along with excavators, which can strip from five to 15 cubic meters of coal layer, the enterprise is planning to receive mobile crushing facilities, loaders and conveyor lines. The equipment suppliers are from Russia, China and the European states.

Urunbaev said that Jigiristan assorting and loading point is also waiting for new equipment. Introduction of new equipment will allow to produce enriched coal through combining low and high cindery coal. This will help to increase sorting and loading capacity. It is planned to invest US$7.4 million to this project.

Modernization of Angren mine, Uzbekugol has also other perspective projects, which were included to the programme on modernization, technical and technological re-equipment of coal industry for 2009-2014. Their total cost exceeds US$1.1 billion.

The main coal consumer in Uzbekistan is power industry. Uzbekistan is also developing this sector. In 2010, Uzbekenergo attracted US$123.9 million of foreign loans and US$218.2 million of loans of the Fund for Reconstruction and Development of Uzbekistan. About 30 km power transmission lines and new transformer capacities have been commissioned.

Works are underway at construction of Kamolot hydro power station, installation of combined cycle gas turbine at Navoi and Talimardjan thermal power stations, turbo expender-generator at Syrdarya and Talimardjan thermal power stations, modernization of hydro power units of Charvaq hydro power station.

The company also has several perspective investment projects. One of the is construction of new substation at Talimardjan thermal power station and 218 km high-voltage line to Sogdiana substation. The line will pass through Kashkadarya and Samarkand region. Over US$150 million will be spent to the project. It is planned that the large part of these funds will be financed by the World Bank. (Source: UzDaily.com)

Uzbekneftegaz national holding company and foreign companies revealed and prepared for drilling 28 perspective structures in 2010. They also started exploration drills at 14 objects and constructed 55 wells, as well as opened five new oil and gas fields.

Reserves of gas, oil and condensate at Yangi Karatepa, Chunaga, Qumli-Taylaq, Hankyz, Dayahatyn, Chandir, Kulbeshkak, Yuzhniy Kyzylbayraq, Adamtash and others were defended at the State Reserves Commission under the State Geology Commission of Uzbekistan.

Extracting enterprises of Uzbekneftegaz, including foreign investors, fulfilled natural gas production by 98.4% and liquid hydrocarbons by 80.2%.

The growth of production of oil lubricants made up 90.4%, aviation kerosene – 102.0%, liquefied gas 99.6%, polyethylene – 99.8% and brimstone – 114%.

Industrial enterprises of oil and gas industry, including the volume of foreign investors with the PSAs, produced goods for 6 trillion soums. The growth rate made up 3.5%. The consumer goods for 600 billion soums were produced in 2010.

The industry realized 56 projects within the localization programme in 2010 (against 41 projects in 2009), on which goods production was fulfilled for 71%. The growth rate made up 39.2%.

Tower, reactor, heat exchanging, chemical and mining equipment, as well as bentonitic clay powder and polyethylene pipelines were exported. Additional 121 jobs were created.

Uzbekneftegaz said that Uzruberoid LLC of Uzneftmahsulot launched production of ruberoid RKK-350 and REP-K-0.8. Four localization projects were implemented at NEFTEGAZMINERAL LLC (Uzgeoburneftegaz), Uzbekhimmash Plant, Polipropilen quvurlaru (Shortan gas chemical complex) and Gazenergoservis.

Overall, the localized goods output on 60 projects at the Uzbekneftegaz enterprises reached 92 billion soums, which grew by 41.3% year-on-year.

At the International Industrial Fair and Cooperation Exchange, the enterprises of Uzbekneftegaz signed 323 agreement on purchase of import-replacing products and services for over 216.5 billion soums in 2010, which is 1.56 times more year-on-year. The actual execution of the agreement made up 95.4% to forecast, while the growth rate made up 48.7%.

Uzbekneftegaz used about 850 billion soums of own resources in 2010 and carried out building and assembly jobs for 230.5 billion soums.

The works on construction of 11 gas and 14 oil wells were completed. Some 244 km of highway and service gas networks were commissioned. Plants on production of polyethylene pipes, polypropylene and gas meters were commissioned at the Navoi free industrial-economic zone.

Some 27 investment projects were included to investment programme of Uzbekistan for 2010. The volume of attracted foreign investments and loans was fulfilled with 2.7% surplus to forecast task, while the forecast of foreign direct investments – with 3.5% surplus. (Source: UzDaily.com)

Uzbekistan announces tender for reconstruction of national highway

Uzbekistan announced tender on reconstruction of motor road Bukhara-Qarshi-Guzar-Termez (M-39) with total extension of 100 km.

The Republican Road Fund under the Ministry of Finance of Uzbekistan announced invitation for prequalification to execution of road construction works at two parts of the road with the extension of 100 km.

In line with the terms, the first contract package will cover road section 1330-1395 km (extension – 65 km). The existing road is under category III (2 traffic lanes) and will be upgraded into category I (4 traffic lanes of 3.75 m wide each). Civil works will also comprise construction of 16 bridges and 2 interchanges, one over railway as well as construction and equipment of 2 weighting stations for axle load control including a set of traffic counters.

The second contract package will cover road section 1400-1410 km and 1426-1451 km (35 km). The existing road is under category III (2 traffic lanes) and will be upgraded into category I (4 traffic lanes of 3.75 m wide each). Civil works will also comprise construction of 13 bridges and 3 interchanges, one over railway.

The announcement said that civil works should meet four-lane International design standard road within the existing right-of-way with asphalt concrete pavement.

Applications for prequalification should be submitted in clearly marked envelopes till 31 March 2011. Prequalification will be conducted through the procedures as specified in the IDB’s Guidelines for Procurement of Goods and Works under Islamic Development Bank Financing, and is open to all eligible bidders from IDB member countries.

The reconstruction works will be financed due to resources of the Islamic Development Bank (IDB) at the size of US$167.2 million, issued to the Government of Uzbekistan in October 2010.

The IDB presented a loan for 20 years with four-year grace period under Istisna’a. This mode is applied in the financing of manufacturing of goods and equipment, as well as in the financing of construction works.

In May 2009, President of Uzbekistan Islam Karimov approved a programme on construction of national roads of the first category in 2009-2014. The programme cost is US$2.6 billion.

Within the programme, it is planned to construct four areas of roads on route Beinau-Kungrad-Bukhara-Samarkand-Tashkent-Andijan, Bukhara-Alat, Bukhara-Karshi-Guzar-Termez and Samarkand-Guzar with total extension of 1,501 km.

Within the programme, it is planned to construct 400 km four line cement-concrete roads and 813 km four line asphalt roads, as well as 288 km two-line asphalt roads. The programme envisages construction of 7 transport road junctions and 1,488 km bridges and underpasses.

Uzbekistan became full-fledged member of the IDB since 2003, which unites 56 countries. During its joint work, the bank issued over US$280 million to realization of 19 projects in agriculture, small and private businesses, education and medicine. (Source: UzDaily.com)

Uzbekneftegaz national holding company announced a tender on rendering services on radial drilling of 70 wells at oil and gas fields in Kashkadarya and Bukhara regions of Uzbekistan.

In line with the tender terms, the tender proposals will be accepted till 31 March. The winner should guarantee disclosure of four radial holes at each well at one, two and more levels with the length of at least 100 meters and under angle of 90 degrees.

According to the company data, the drilling of 20 wells will be conducted at the Western and Eastern Tashly Northern Shortan, Garmistan, Yangi Karatepa and Qumchiq in Kashkadarya region.

The drilling of other 50 wells will be carried out at the Kokdumalak, Southern Kemachi, Northern urtabulak, Kultak, Kruk, Western Kruk, Southern Zekri, Chiston and others in Kashkadarya and Bukhara regions.

The contact will be financed due to own resources of Uzbekneftegaz. (Source: UzDaily.com)

Uzbekyengilsanoat (Uzbek Light Industry) state joint stock company will place shares for 8.873 billion soums.

The company said that the Center for coordination and control over functioning of securities market registered the prospectus of emission on 25 February.

In line with the prospectus of emission, the company will issue 88,726 ordinary shares with par value of 100,000 soums each. Total volume of emission makes up 8,872,600,000 soums.

The shares of the emission will be placed on closed subscription. The securities will be placed to the State Property Committee of Uzbekistan due to the state share. The shares will be paid with the property.

According to the prospectus of emission, Uzbekyengilsanoat will receive sporting complex in Tashkent for 818.575 million soums and property complex in Namangan city for 8.054 billion soums. (Source: UzDaily.com)

Uzbekistan adopts measures to satisfy internal market with local medicaments

The Government of Uzbekistan approved a list of medicaments, at importing of which tax preferences will not be applied.

The decision was adopted in order to develop pharmaceutical industry of Uzbekistan and satisfy internal market with locally-made medicaments.

In line with the resolution of the Cabinet of Ministers of Uzbekistan “On regulation of import of ready medicaments”, the list of medicaments, at importing of which value added tax preferences, set by clause 6 of article 211 of Tax Code, will not be applied, will be introduced in Uzbekistan from 1 April 2011.

The Government of Uzbekistan also formed special working group, which will consider proposals on introduction of changes and amendments to this list.

The group was entrusted to develop a Regulation on order of introducing changes and amendments to the list and submit to approval by 1 April 2010.

According to the resolution, the regulation should determine concrete criteria of including medicaments to the list based on analysis of population illness structure, quality and satisfaction of internal market with locally-made medical products.

The working group will also conduct monitoring of pharmaceutical market of Uzbekistan and at necessity to introduce proposal to change to the list.

The new list included 45 medicaments. The list included such medicaments as ampicillin, white petrolatum, glycine, lidocaine, calcium gluconate, oksolin, paracetamol, pyracetam, cefazolin and others.

In line with clause 6 of article 211 of Tax Code, Uzbekistan exempted import of medicaments and medical (veterinary) products, raw materials for their production, from payment of value added tax.

The preference did not apply to imported ready medical products, which are produced in Uzbekistan and approved by the Government of Uzbekistan.

As earlier reported, State-Joint-Stock concern Uzpharmsanoat is planning to realize 59 projects with total cost of over US$1.086 billion within the programme on priorities of industrual develoment of Uzbekistan for 2011-2015. (Source: UzDaily.com)

External trade turnover of enterprises with foreign capital reach US$5.385bn

The volume of exports and imports of enterprises with foreign capital made up US$5.385 billion in 2010, the State Statistics Committee of the country said.

The committee said that the volume of exports of enterprises with foreign capital made up about US$1.794 billion and imports – US$3.591 billion in 2010.

Andijan region (US$543.3 million), Tashkent city (US$441.1 million) and Tashkent city (US$417.9 million) made up Top Three on the volume of exports.

Lowest number of exports was recorded in Karakalpakstan (US$10.1 million), Khorezm region (US$12.3 million) and Jizzakh region (US$17.5 million).

In the reporting period, Tashkent city (US$1.11 billion), Andijan region (US$991.6 million) and Tashkent region (US$110.7 million) led on the imports volume.

Lowest number of import fell to share of enterprises of Surkhandarya region (US$2.4 million), Khorezm region (US$7.3 million) and Karakalpakstan (US$8.8 million).

Uzbekistan's foreign trade turnover reached US$21.844 billion in 2010 (+3%) in 2010, the Uzbekistan State Statistics Committee of Uzbekistan said. The trade turnover with the CIS states made up US$9.425 billion and other countries – US$12.42 billion.

The volume of exports of Uzbekistan made up US$13.045 billion and the volume of imports reached US$8.8 billion in 2010.
Exports and imports of enterprises with participation of foreign capital in 2010

(in mln. USD)

Export In % to January-December 2009 Import In % to January-December 2009
Uzbekistan 1793.8 55.0 3591.4 74.3
Karakalpakstan 10.1 40.8 8.8 51.0
region:
Andijan 543.4 199.8 1396.3 123.8
Bukhara 46.1 3.7 times 40.0 88.8
Jizzakh 17.5 2.5 times 10.5 82.9
Kashkadarya 27.4 1.5 17.2 7.1
Navoi 38.0 111.9 23.3 168.1
Namangan 42.4 2.3 times 44.3 92.7
Samarkand 45.7 67.8 125.5 146.7
Surkhandarya 20.4 64.0 2.4 58.6
Syrdarya 17.8 2.2 times 35.4 2.2 times
Tashkent 417.9 175.6 186.1 142.5
Ferghana 113.7 128.1 59.8 102.9
Khoream 12.3 171.1 7.3 149.3
Tashkent city 441.1 70.3 1634.5 53.9

(Source: UzDaily.com)

Number of small enterprises and microfirms grows to 232,000 units

Number of small enterprises and microfirms in Uzbekistan grew from 224,232 units in 2009 to 231,717 units in 2010, or increased by 3.34%.

According to the State Statistics Committee of Uzbekistan, some 35,050 units of small enterprises and microfirms were created in 2010 and 23,187 were liquidated.

Largest number of small enterprises and microfirms are operating in Kashkadarya region (44,439 units), Tashkent city (36,136) and Andijan region (19,281).

Syrdarya region (6,047), Navoi (6,179) and Jizzakh (6,728) regions have the lowest number of registered small enterprises and microfirms.

According to the committee, Tashkent city led on the number of registered small businesses in 2010. Some 6,833 enterprises were registered in the capital in January-December 2010. Kashkadarya and Tashkent regions claimed the second and third places correspondently. Some 4,147 new small enterprises were registered in Kashkadarya region and 2,943 in Tashkent region in 2010.
The lowest number of small businesses in Uzbekistan registered in Navoi region (899), Syrdarya region (1,309) and Jizzakh region (1,405) in 2010.

The committee said that Tashkent city (4,183), Kashkadarya region (3,143) and Bukhara region (3,338) led on number of the liquidated enterprises.

The lowest number of enterprises was liquidated in Syrdarya, Jizzakh and Navoi regions in 2010. Some 530 enterprises were liquidated in Syrdarya, 598 enterprises in Jizzakh region and 756 enterprises in Navoi region.

According to the committee, share of small enterprises in the GDP of Uzbekistan made up 52.5% in 2010, industrial output – 19.6%, construction works – 52.3%. Share of small businesses in retail trade turnover of Uzbekistan reached 50.5% and paid services – 47.7%.

As earlier reported, Uzbekistan announced 2011 as the Year of Small Business and Private Entrepreneurship. Uzbek President Islam Karimov approved the state programme “The Year of Small Business and Private Entrepreneurship” on 7 February 2011, which envisages wide-scale measures on creation of favourable conditions for small and private businesses in the country.

SOCIETY

Uzbekistan develops national programme on well-being of children for 2011-2014

Uzbekistan created the legislative system, which regulates issues of protecting rights, freedoms and interests of children.
The system includes Constitution of Uzbekistan, Civil Code, Family Code, Labour Code, Criminal Code, Criminal Procedure Code, and others, which regulate issues of implementing children rights and obligations of the corresponding state bodies on their execution and protection in the case of their violation.

So, for example, the principles and directions of the activities of the government, responsible for avoiding discrimination of children, respect to children views and participation of children in decision-making in issues related to their rights and others were included to the Law “On guarantees of children rights” to implement the general principles of the Convention on the rights of the child.

It should be mentioned that the Convention on the rights of the child, in particular article 1, was implemented in Uzbekistan in legislative level before the country joined the convention. So, the changes to article 135 of the Criminal Code were introduced and human trade was criminalized. Commitment of such crime against persons under the age of 18 will be qualified as sign of human trade. Article 14 of the Law “On guarantees of children rights” sets guarantees of children rights to illegal movement. In particular, it says that each child has right to protection from illegal movement and failure to return from abroad.

Currently, diplomatic missions of Uzbekistan are keeping books on number of children, citizens of Uzbekistan, staying abroad without accompaniment of their legal representatives and adopting measures on returning them to the country. The government and all interested structures are adopting necessary measures on preventing illegal movement of children and returning them to Uzbekistan in line with the legislation and international agreements.

Besides, the legislation envisages special conditions for protection of youth labour. In line with article 2 of the Law “On guarantees of children rights” and article 77 of the Labour Code, people at the age of 16 can be employed in Uzbekistan. Articles 214 and 242 of the Labour Code set the rule, in line with which they should underwent preliminary medical examination before they are employed.

The working hours for persons at the age between 16 and 18 set at 36 hours per week and at the age between 15 and 16 – not more than 20 hours a week, which is standard in developed democratic states.

Overall, in line with the legislation and Constitution of Uzbekistan, children are equal before the law, independently their origin or civil status of the parents. Childhood today are fully protected by the government.

The government of Uzbekistan is developing National programme for well-being of children or 2011-2014 and adoption of the law “On Children Ombudsman” and creation of necessary legal base for functioning of the institute are under discussion.

According to international experts, currently Uzbekistan created firm normative legal base, directed at preventing human trade, including at preventing child trade, child prostitution and pornography.

Uzbekistan is participant of the Convention on the rights of the child from 1992. Uzbekistan also carries out targeted work on execution of recommendations of the Committee on the rights of the child, which was made in the result of the Second periodic report of Uzbekistan on implementation of the Convention.

Currently, Uzbekistan prepared third report to the UN committee on the rights of the child, which fully describes works, carried out in Uzbekistan to protecting rights and interests of children. (Source: UzDaily.com)

SPORT

Davis Cup: Denis Istomin wins second point for Uzbekistan

Uzbekistan number one Denis Istomin claimed the second point for Uzbekistan in the match of the Asia/Oceania Group of Davis Cup against New Zealand.

Denis Istomin, who currently holds 54th place in ATP ranking, defeated Rubin Statham in straight sets – 6/2, 6/3 and 6/3.
On Saturday, Denis Istomin and Murat Inoyatov will play against Marcus Daniell and Michael Venus in the pairs match.

Uzbekistan needs to win one of remaining three matches to qualify to the second round of the tournament.

The match between Uzbekistan and New Zealand is taking place on the clay at the Pahlavon Sport Complex in Namangan. (Source: UzDaily.com)

Uzbekistan national team claimed the first point against New Zealand in the match of the Asia/Oceania Group of Davis Cup.

Uzbekistan’s number two Farrukh Dustov handed straight defeat to New Zealand No. 1 Artem Sitak – 6/0, 6/3 and 6/1.

In the second singles match, Uzbekistan number one Denis Istomin will face Rubin Statham, who is ranked 496 in the world.

The match between Uzbekistan and New Zealand is taking place on the clay at the Pahlavon Sport Complex in Namangan. (Source: UzDaily.com)

Feather in the cap for Uzbekistan

Uzbekistan's appointment as hosts for the FIFA U-20 Women's World Cup 2012 is confirmation of the Central Asians' growing reputation as first-rate tournament organizers.

Uzbekistan have been at the forefront of hosting several major AFC tournaments in the recent past and the FIFA honour is yet another feather in their cap.

Tashkent, the capital of Uzbekistan, hosted the 16-team AFC Futsal Championship in 2006 and 2010 and the AFC U-16 Championships in 2008 and 2010 with a high degree of success.

The Uzbekistan Football Federation is understood to be planning to host the tournament in Tashkent, Bukhara, Samarkand and Karshi.

The FIFA U-20 World Cup will feature 16 of the best women's youth teams. Past tournament winners include United States (2002), Germany (2004), DPR Korea (2006), United States (2008) and Germany (2010). (Source: UzReport Agency)

Uzbekistan to host 2012 FIFA U-20 Women's World Cup

Uzbekistan will host the 2012 FIFA U-20 Women's World Cup. This was announced at the press-conference following the first FIFA Executive Committee meeting of 2011 on 3 March.

The Uzbekistan Football Federation (UFF) said that Uzbekistan and New Zealand competed for hosting the event.

FIFA President Joseph S. Blatter said: “Women’s football is developing with great tempo in Uzbekistan and currently we are happy to announce that the 2012 FIFA U-20 Women's World Cup will be held in this country.”

The UFF said that earlier Vietnam was selected to host the event, but the FIFA decided that the country is not ready to host such large sport forum and decided to replace the venue. (Source: UzDaily.com)