April 14, 2008
Economics:
New benefits for investors
Sugar market expects stability
Andijan textiles with British accent
UzKDB publishes audited financial statements
Tashkent to host quality forum
New radars to help aviators
Society:
Academy Holds Conference on Modern Cadres Training
Orphans, disabled children in Ferghana learn computer skills
New project from Forum Foundation
ECONOMY
NEW BENEFITS FOR INVESTORS
Uzbekistan releases property, brought by foreign investors for their own production needs, from custom duties, Uzbekistan Today reported.
These benefits were introduced into laws “On foreign investments” and “On custom tariffs” in accordance with amendments taken effect this week.
These amendments were approved by the Legislative Chamber of the Oliy Majlis of Uzbekistan in February this year and the Senate of the Oliy Majlis in March this year.
The introduced amendments release property, imported to Uzbekistan by foreign investors and companies with foreign investment with not less than 30 per cent of foreign investment share in the chartered capital, form custom duties.
The new regulations also release property, brought for personal needs by investors and foreign citizens living in Uzbekistan in accordance with signed labor agreements, from import custom duties.
At present, the goods imported by foreign juridical persons that invest more than US$ 50 million into Uzbekistan’s economy: goods, works and services for executing PSA (product sharing agreement); technological equipments imported to the territory of Uzbekistan by foreign investors as their contribution to chartered capital of companies with foreign investment as well as equipment imported to the republic in accordance with approved projects on launching new, modernizing and reequipping acting facilities are also released from custom charges.
SUGAR MARKET EXPECTS STABILITY
The government of Uzbekistan supported the local market of sugar. It offered the OSC “Xorazm Shakar”, Uzbeksitan’s only sugar manufacturer, a number of tax and customs benefits for purchasing raw material and equipment till October 1, 2008.
The sugar price is growing in the world markets. Since last December, the cost of unrefined sugar in international exchanges has increased by 27% and that of lump sugar has gone up by 20%. More tension in the “sweet market” comes up because of perspectives of using sugar as a means for producing ethanol that can be an alternative fuel for vehicles. In Uzbekistan, the price for sugar remains stable. But sugar, in this case, is quite demonstrative product because in winter the demand for sugar is traditionally low, the time for increase in sugar price is summer. Official statistics shows that the annual demand of Uzbekistan for sugar is 630,000 tons and nearly 350,000 thousand tons of it is imported from foreign countries, according to the Uzbekistan Today newspaper.
In addition, analysts think that investors aggravate the situation. Aspiring to avoid falling dollars and hoping to gain good profit, they invest their free capital in signing of “sugar contracts.” This speculative inflow provokes sharp increase in price for the ideal product, from long-term investment point, like sugar, coffee and cocoa. Representatives of the Association for Food and Fat-and-Oil Industry of Uzbekistan believe that it is necessary to take protection measures not in the moment of shock when the price growth reaches the home market, but beforehand. Seasonal and temporary tax preferences for importing raw material are among such measures. The Uzbek government reacted to market situaation, releasing the Khorezm Sugar Plant from customs charges for imported equipment, raw and other materials required for producing the product. The plant is also released from value added tax for its product.
The Khorezm Sugar plant worth US$ 83 million was set up in 1998. Today its sugarcane processing capacity is 1,000 tons a day.
In March 2006 the Austrian SEID Handelsgesellschaft mbH bought 99.43% of public stocks worth US$ 17.6 million. In accordance with terms of the sales contract, the Austrian company took additional investment liabilities for repaying account payable of US$ 11.6 million and 7.2 billion soums and liabilities of investing US$ 6 million in the “Xorazm Shakar” for launching new products. In comparison with 2006 the “Xorazm Shakar” increased its sugar output by 1.2%, up to 170.992 thousand tons in 2007. This year the company aims to reach 200 thousand tons.
The year 2008 in Uzbekistan will be essentially the first year of seasonal preferences for importing of raw-sugar that will last within intensive processing period. Tax and customs benefits must create conditions for strengthening the country’s own resource basis and increase the share of sugar in total deliveries to the home market. Therefore, the republic expects increase of sugar production and stabilization of its price.
ANDIJAN TEXTILES WITH BRITISH ACCENT
The Uzbek-British JV “TAGUS Textile,” worth US$ 9.74 million, was set up on the basis of textile SC “Izboskan Shoyi Tukish” in Andijan region.
The SSC “O’zbekyengilsanoat” (Uzbek light industry) informs that the joint venture’s founder is the British TAGUS Management Services Ltd.
According to the terms of the joint venture, the British company intends to invest, within five years, US$ 30.5 million in the development of “TAGUS Textile”. Particularly, in production of cotton card yarn with capacity of 3000 tons and 1000 tons of rough knitted fabric a year.
The Izboskan Shoyi Tukish silk-reeling factory was launched in 1982 as the largest silk-reeling factory of the region.
In early 2006 the government of Uzbekistan planned to sell shareholdings of nearly 220 bankrupted textile enterprises in order to modernize and reequip them within the financial recovery of the country’s textile industry.
Within 2006 and 2007 a number of foreign investors bought up Uzbek textile enterprises’ assets worth around US$ 290 million.
UZKDB PUBLISHES AUDITED FINANCIAL STATEMENTS
In the year 2007 the authorized capital of the Uzbek Korean Development Bank (UzKDB) increased by almost 36.6% to US$12.27 million, the bank's press service announced.
As a result of this growth, and the increase of the bank's net profits to 4.6 billion soums, the total capital of the bank grew by 38% against the previous year's results.
UzKDB's financial statements for 2007 audited by the member of the Big Four – PricewaterhouseCoopers (PWC), illustrates that the absolute size of the bank's assets reached 107.9 billion soums. The assets thus grew by 27.4% year-on-year.
The bank's main resource base is constituted by the funds of its clients. In the reporting period the proportion of the clients' deposits in the total volume of the bank's liabilities made up 76.4%, or 82.4 billion soums.
Also in 2007 the bank issued into circulation 873 more VISA cards. Today the total number of cards circulated by the bank exceeds 9,000.
The total number of the operations conducted by means of the bank's cards made up over 9,000. The volume of non-cash payments made through the terminals in trade and service facilities accepting VISA plastic cards grew by 33.5% year-on-year to some 14 billion soums.
TASHKENT TO HOST QUALITY FORUM
On April 23-24, 2008 the TQM Uz 2008, the first international quality forum of Uzbekistan takes place in Tashkent. The quality of goods is foundation for stable development of society.
The forum is initiated by the Uzbekistan Agency for Standardization, Metrology and Certification (“O’zstandart”), Uzbekistan Chamber of Commerce and Industry and International Association for Quality Managers and Auditors.
The forum is expected to gether representatives of Uzbek ministries and departments, quality managers of biggest industries and organizations, representatives of small and medium-sized business and famous specialists in quality management from Uzbekistan, Russia, Kazakhstan, Great Britain, Germany, South Korea, Philippines, Iran, Turkey and other countries.
Within the framework of the forum, Uzbek enterprises and organizations, which have introduced the quality management system in accordance with the ISO 9001, ISO 14001, OHSAS 18001 and other requirements, will present an exhibition of their goods. The second day of the forum will sum up results of the “Best Quality Manager of Uzbekistan 2007” competition.
NEW RADARS TO HELP AVIATORS
The Uzbekistan Airways will implement a project on modernizing air traffic control system in airports of Namangan and Samarkand in 2008-2009.
The national air company’s authorities inform Uzbekistan Today that within the project, the Namangan airport intends to install secondary radar and the Samarkand airport – the instrument landing system with distance measurement equipment (ILS DME).
The Uzbekistan Airways has announced tender for “turnkey” installation of the equipment. It plans to summarize results of the tender this May. The air company is to finance the projects, using its own funds.
The integrated air traffic control system of Uzbekistan connects via satellite large airports of the country with the Center of Air Traffic Control in Tashkent city that ensures the world-leveled control of air traffic across the country.
SOCIETY
ACADEMY HOLDS CONFERENCE ON MODERN CADRES TRAINING
The scientific and practical conference on the role of information and communication technologies in training the modern leadership cadres was held at the Academy of State and Public Construction of the President of the Republic of Uzbekistan.
The event was organized alongside with the Committee of the Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan on information and communication technologies, Jahon Information Agency quoting the Narodnoye slovo newspaper.
The lawmakers at the Legislative Chamber of national parliament, the representatives of the ministries and agencies, scientists, teachers and students of the Academy participated at the conference.
At the moment, the creation of conditions and opportunities to fully satisfy the needs of youth in effective information and access to world information resources is being gradually continued in the country.
The participants of the forum have underlined the need to raise the responsibility of leadership cadres, effectively use their knowledge and skills to form the ideological immunity in the youth vis-a-vis various information attacks, the firm conviction and views to life, bring them up in the spirit of respect to national and universal values.
They also spoke on the topic “Role of modern information technologies in upbringing the youth”, “Legal bases of introducing the information and communication technologies into the state governance”, “Opportunities of using the information recourses and communication technologies in training of the leadership cadres”.
ORPHANS, DISABLED CHILDREN IN FERGHANA LEARN COMPUTER SKILLS
UNDP project UzSciNet and Ferghana Brand Info LLC partnered with local entrepreneurs and staff of children's homes to integrate orphans and children with disabilities into society through providing them with computer lessons, Uzreport Business Information Portal reported.
In December 2007, UzSciNet project and Ferghana Brand Info LLC, which runs own Internet Center, launched a project "New Year Literacy". Within the project, orphans and children with disabilities from Ferghana-based children's homes and special schools for children with disabilities participated in training on computer literacy and charity action during December-January.
During the winter holidays, about fifteen volunteers of Ferghana Brand Info LLC organized New Year celebrations for 140 inmates of three children's homes. Local businesses and farmers provided various presents to children. Children also attended in New Year play and searched for computer, which was stolen by robbers. They should answer to question to return stolen computer.
The project also allowed 50 children from children's homes to gain knowledge on computer basics and Internet. Children learnt to create, save, edit and print documents, as well as use Internet for search of information and send emails.
This project "New Year Literacy" gave impetus to further cooperation with children's homes of Ferghana city and over ten staff members of children's houses took part in computer and Internet literacy courses in February and March.
On 5 March, trainers of Internet Center conducted three hour training for 16 children on preparation of picture-card dedicated to 8 March, International Women's Day. They prepared design and text of picture cards and draw them on computer. After that they print picture-cards to congratulate all female workers of children's home.
UzSciNet project and Ferghana Brand Info LLC are continuing to teach orphans and children with disabilities. Each Wednesday, Internet Center of Ferghana Brand Info LLC welcomes them to trainings. It is planned that the partners will several events dedicated to 1 June, International Children's Day.
NEW PROJECT FROM FORUM FOUNDATION
New grandiose project of the “Forum of Culture and Art of Uzbekistan” Foundation – Festival of traditional culture “Sarbon sadosi” (Voice of leader) will represent all diversity of national traditions and customs, applied art and national cuisine, unique oral and non-material heritage: folk music, songs, dances, epos, traditional ceremonies, games, traditions of handicraft, and many others.
Festival will be held every year in different regions of Uzbekistan in the format of national festival.
Shakhrisabz city in Kashkadarya region will host the first “Sarbon sadosi” Festival on May 3-4, 2008 and will include such events as folk ensembles contest, traditional dress show, fair exhibition, national and local cuisine presentation, different games and others.
Folk and theatre troupes, singers, musicians, dancers, public story-tellers, buffoons, designers, artists, well-known craft masters and national cuisine chefs will take part in the Festival.
Honoured art and culture workers of Uzbekistan, foreign guests, representatives of Diplomatic Corps and organizations, journalists and public will be invited to the event.
The main objective of conducting this Festival is preservation of folk legacy, popularization of national creativity, support and stimulation of talented local collectives and masters, presentation of unique and time-honored culture of Uzbekistan to a world community.