28 March, 2006

Content:

Politics
Uzbek head starts visit to Republic of Korea today
Uzbekistan, South Korea to sign 15 documents
Uzbekistan support nomination of South Korea to post of UN Secretary General
Karimov's book - mirror of will, expectation of Uzbekistan people
Islam Karimov - epoch-making leader – Korean newspaper
Promoting friendship through health and medical support
Uzbek MPs discuss terrorism, nuke-free region

Business
Daewoo leads Korean business in Uzbekistan - Daewoo International CEO
Uzbekistan to get $300 mln loan from Asian Development Bank
Russian-Uzbek business community holds meeting
Uzbek-Belarusian relations are developing - envoy
ICT Development in Uzbekistan 2005 Report published
Uzbekneftegaz to construct gasholder in Tashkent region
Leasing operations in Uzbekistan doubled in 2005
ICTP develops study on use of open source software
Chinese company to construct of sewage cleaning establishment in Namangan

Society
UNICEF promotes mobilisation of children parliament

POLITICS

UZBEK HEAD STARTS VISIT TO REPUBLIC OF KOREA TODAY

President of Uzbekistan Islam Karimov started a state visit to the Republic of Korea on 28 March. During the visit, the leaders of two nations will discuss ways to strengthen practical cooperation in trade, investment and energy and resources development. President Karimov is also scheduled to meet with local business leaders, National Assembly Speaker Kim One-ki and Deputy Prime Minister and Economy and Finance Minister Han Duck-soo.

UZBEKISTAN, SOUTH KOREA TO SIGN 15 DOCUMENTS

President of Uzbekistan Islam Karimov said at Tashkent airport before departure his state visit to the Republic of Korea would lift relations between two states to new level.

President Karimov said it is planned to sign 15 documents, including agreement on strategic partnership between Uzbekistan and South Korea.

He said that the volume of Korean investments, within framework of new agreements, to Uzbek economy would be US$1.8 billion.

Currently, Uzbekistan and South Korea signed over 60 documents, UzA reported.

UZBEKISTAN SUPPORT NOMINATION OF SOUTH KOREA TO POST OF UN SECRETARY GENERAL

President of Uzbekistan Islam Karimov said at Tashkent airport before departure to South Korea that Uzbekistan supports candidacy of South Korea to the post of United Nation Secretary General.

As earlier reported, South Korea nominated Mr. Ban Ki-moon, Minister of Foreign Affairs and Trade as a candidate for the post of the next Secretary-General of the United Nations.

Uzbek head said views of Uzbekistan and South Korea on many international issues are similar.

Mr. Kofi Annan, Secretary-General of the United Nations, concludes his term at the end of this year, before which the process of electing his successor will take place. It is expected that the next Secretary-General will be from Asia, in line with the established practice.

KARIMOV'S BOOK - MIRROR OF WILL, EXPECTATION OF UZBEKISTAN PEOPLE

The Korean Herald is publishing series of articles on Uzbekistan and its relations with South Korea on the eve of the visit of Uzbek President Islam Karimov to the Republic of Korea. Following is article on Uzbek head's book "Uzbek people will never depend on anyone".

In 2005 a book by President of the Republic of Uzbekistan Islam Karimov titled "Uzbek people will never depend on anyone" was released in Uzbek and Russian. Most recently a significant event has taken place - the book was translated to Korean and put to the large circulation in the Republic of Korea.

The book consisting of collection of works by Islam Karimov, written in three parts, starts with the thesis "Nobody can turn us away from the chosen way." In the first part the President of Uzbekistan in detail restores the chronicle of events in Andijan last May, makes comments on the purposes of criminals and on plans, which they hatched.

The second part of the collection is entitled "The truth must always be a firm condition for journalism." President Islam Karimov emphasized that all insinuations in reports concerning the events in Andijan, when separate foreign mass media produced information up to preliminary results of investigation, speak about the custom-made character of such reports.

In the last part of the book titled "Uzbek people will never depend on anyone" the President of Uzbekistan notes that "orchestrators and all those who participated in the tragic events in Andijan should understand that they have lost and besides only because the people has not supported their plans".

The collection includes statements and answers by President Islam Karimov to the questions of journalists at the press-conference on 14 May 2005 in "Oksaroy" Presidential residence and during the briefing with representatives of local and foreign mass media and diplomatic corps in Tashkent on 17 May 2005 in the office of Prosecutor-General of the Republic of Uzbekistan in connection with events took place last 13 May in Andijan.

The book includes also Islam Karimov's interview to mass media at the Tashkent airport on 25 May 2005 before he left the country for a state visit to China.

As President Islam Karimov has stated it is impossible to deceive the people, to turn off them from the chosen way. However there are some people who are mistaken. Our people have expressed its attitude to tragic events. It has already realized true goals of executors and organizers of these murderous deeds. People have not given way to panic, as persistently asserted some foreign mass media. Quite the contrary, the life proceeds, people are engaged in creative work.

"In Andijan life continues. But some people still strive to use the events. They spread cock-and-bull stories and squabbles and make silly demands. For example, that the Andijan events require an international commission.
"As for the international investigation, Uzbekistan is an independent country with a constitution, government and deputies elected by the people. Why should someone from outside come?"

The peaceful life of the people and country depend on the people living here, on each of us, - told Islam Karimov.
"To achieve noble ends demands sacrifice. I repeat: I am ready to give my life for the motherland, for my people. Our people will never turn away from the chosen path. They will never be dependent."

Sound arguments and facts, logical and impartial thoughts produced in the book are of great importance to revealing essence of events in Andijan, to suppressing various fabrications on this ground.

"Uzbek people will never depend on anyone" - this title of the book contains deep sense. These words by the President coming out from the bottom of the heart, express a will and expectation of all the people.

Islam Karimov is credited among his countrymen as a strong pragmatic and far-sighted leader as well as initiator of historic transformations in the country.

He was elected President of the Republic on 24 March 1990 at the Session of the Supreme Council of Uzbek SSR. On 29 December 1991 and on 9 January 2000 he won people's mandate at the nationwide presidential elections held on an alternative basis.

As a long-serving government official and technocrat, Islam Karimov is a noted leader and profound observer of his country. It was with these qualities that he helped turn his nation into one of the more successful cases of transition from Soviet-styled communism to a marked based democracy.

He advocates forming a democratic state, including citizens' right to participate in state management, creating a multiparty system, developing the media, transforming concepts of ownership and establishing a legal system.

So far, Islam Karimov's reforms have had impressive results, Fixed macroeconomic stability was achieved. The national monetary system is near completion with sufficient and stable gold-currency reserves in addition to the formation of a stable financial infrastructure, and the scale of privatization has deepened and expanded.

ISLAM KARIMOV - EPOCH-MAKING LEADER – KOREAN NEWSPAPER

The Korean Herald is publishing series of articles on Uzbekistan and its relations with South Korea on the eve of the visit of Uzbek President Islam Karimov to the Republic of Korea. Following is article on Uzbek head.

When the political and ideological dictatorship of a totalitarian regime was broken, a new democratic and secular civilization arose in struggle with old obsolete ideology. During this epoch of national revival, there was obviously a need for Titans and, naturally, the country gave birth to Titans in strength of mind, in passion and character, in variety and erudition.

By virtue of objective historical needs these Titans of mind become epoch-making, well-known figures. For sovereign Uzbekistan such figure is Islam Karimov, who, as a founder of the independent secular state, has defined a strategy of development of the society towards the great democratic future.

Without fear, courageously and with extreme prowess he took the responsibility of the founder, bearing the heavy burden of the transitional period of national revival. He understood and realized well his important mission as a Head of State, in dramatic conditions following the collapse of a totalitarian regime, and has bravely pushed radical reconstruction and democratization of the party control system. As early as 1990 Uzbekistan was a pioneer among the former Soviet republics that introduced a presidential system in the country, thus preventing the state will and persistency from weakening in conditions of universal cataclysm and instability.

The President has faced complex problems which were settled courageously and heroically, even in the face of a direct and dangerous threat of civil war, resolutely struggled against anarchy established at the end of 1980s in the country.

First of all it is a question of bloody conflicts on international ground which have taken place between Turk-Meskhets and Uzbeks, Kyrgyz and Uzbeks. Only thanks to his persistence and resoluteness the bloodshed in the region was prevented. This merit of the President of Uzbekistan was later objectively appreciated not only by heads of neighbouring countries but also by the history of the transitional period.

As against many colleagues the leader of Uzbekistan has brought his people to the independence without victims and bloodshed, establishing a sovereign state and ensuring not revolutionary but evolutionary way of national development under the principle - "never destroy the old house before you build a new one."

Taking the situation and the reigns of government to hand, he does not put off problems, first of all, the pressing ones that hamper the development and treat the further existence of not only Uzbekistan as a sovereign state alone but also the neighbouring independent countries.

The leader of Uzbekistan believes that avoiding them further is much more dangerous than to meet the challenge. Because the people begin to distrust promises while the weak authority loses its face. The engine of the state machine - the executive power - begins to rattle as soon as someone tries to start it. In such conditions the people can not further rely on either force of the law nor the fairness of ruling authority, but do so only - on themselves. Then what for do they need such power?

A vivid example of such chronic evil is criminality. Since the first days of independence the leader of Uzbekistan has accepted a challenge. The real step towards supremacy of the law was made. The criminal world was dealt a shattering blow.

Other complex problems of the transitional period were solved in time. Life itself has prompted that only accepting a challenge openly makes a victory possible. This is the firm vital position, open political and human will of the President. For over the historically short time the people had an opportunity to discern what the leader considered main and important, particularly did in politics and national economy, what political plans he pursued.

These questions should be answered. And answer was given without intermediaries, directly, briefly and clearly by conceptual development of a strategy of "the Uzbek model" of development consisting of five principles, which took into account historical, spiritual traditions and features of the mentality of the people.

It is known that any program begins with designation of main objectives. State programs begin with an objective which is capable to unite the people, all citizens. In order to make the program integral and working, it must conceptually "stick together" all components of the state policy (economic, political, spiritual, foreign, etc.), and to give out a unified state platform.

For the citizen of young independent Uzbekistan the moral foundations that for the first time he finds in the family, and which make a core of patriotism, were important. Without it, it is impossible to agree about anything and Uzbekistan should forget national dignity and even the national sovereignty.

It was the starting point. The task of the leader in inclining the society to important strategic objectives, adjusting everything, assisting people to believe in own forces. Only thus the unified command spirit is formed, only thus the victory is achieved.

The Head of State well understood it and therefore has openly recognized root problems of national revival, has precisely set priorities, and then lead Uzbekistan to a new civilization.

Thus on its path of transition from one quality into another Uzbekistan has selected itself a leader, which was necessary at that time.

His epoch-making feature, first of all, is tied with his realism, charismatic personality, rationalism. He is considered as a "Titan of mind" because he has managed to develop a program of strategic development of the country ensuring its great future. He is viewed as a pragmatist-reformer because his new ideas of "the Uzbek model" of development fully meet the interests of free people and independent society. His reform-minded charisma is based not only on an idea, but most of all - on its realization in practice.

As a restless character, he is always in search of the best for his Uzbekistan. Oliy Majlis adopted the Law on the establishment of a bicameral parliament in Uzbekistan on Mr. Karimov's initiative.

He insisted on the reform and liberalization of the court and legal system. He is breaking the apparatus of violence and repression inherited from the Soviet power, trying to make it humane, putting power wielding structures on the protection the people.

He does not hinder the work of human rights organizations even if they are not always objective, let alone loyal to him.

Modernization reform of the Armed Forces, the border and internal troops, capable of protecting the territorial integrity and safety of borders of the republic, has started by the initiative of Mr. Islam Karimov.

He views the youth with different approach and great hope. He sees the continuation of his work in them, and attached primary importance to education of youth from the first days of his presidency. Attention, supported by concrete action. The "Umid" Fund, to support talented students and youth is unique in post-Soviet space, was established by his initiative. By the means of that fund, thousands of young men and women are studying at the best universities abroad. Hundreds of new lyceums and colleges are built around the country. Aim-oriented policies stemming from his ideas, that it is easier to retrofit a factory than change the approach of people who work at this factory. He knows that only too well - he started off as a foreman, a line manager and a chief engineer of a large enterprise.

What else? Despite the arguments of his critics he insists on a true multi-party system that has to be a political dominant and a guarantee of the irrevocable character of democratic reforms in Uzbekistan. He has repeatedly said that one has lean upon resilient things. On the other hand, he cannot stand demagogues of all kinds and practitioners of populism who play on human emotions but cannot think in concrete categories.

There is no doubt that Mr. Islam Karimov is neither a "refined" nor a "career" democrat. He is a politician acting in the harsh realities of a contemporary world in a state of flux, the one who combines rare intuition with education, pragmatism, and effectiveness. These qualities, necessary for a leader of this rank, assist him to pursue his objective - to achieve a better life for his nation and homeland - an independent Uzbekistan.

There were many tempting ideas in a history of mankind and in rare cases it was possible to realize them in practice. Such vocation was given to leaders with extreme ability. Only great epoch-making leaders are capable to scale, prospective ideas illuminating a way to the civilization, to the future.

The President of Uzbekistan is considered such figure by right. That are reasons why. First, ensuring independence to the people, as the Head of State he has chosen own way of the sovereignty for Uzbekistan, has developed famous, universally recognized five principles of "the Uzbek model" of development as integral concept of strategy for national revival.

Five principles created a base for independent development on the basis of which reforms were carried out and continue to realize.

Secondly, priorities for further deepening of reforms were determined on the basis of these important principles, and achievements and popular support of the people for reforms. At this the liberalization of all spheres of the society was determined as a priority.

Thirdly, a strategy consisting of seven priorities and directed on overcoming new problems and tasks was put as an answer to these challenges. Objectives and tasks of this idea are to lift up reforms on democratization and modernization of the country and society on a qualitatively new level by maintaining their continuity and consistency, transparency and predictability.

Thus newest ideas of political philosophy of the first President became a theoretical basis for the strategy of independent Uzbekistan: "from the strong state - to the strong civil society".

PROMOTING FRIENDSHIP THROUGH HEALTH AND MEDICAL SUPPORT

The Korean Herald is publishing series of articles on Uzbekistan and its relations with South Korea on the eve of the visit of Uzbek President Islam Karimov to the Republic of Korea. Following is article of Kong Han-chul, Secretary General of the Korea International Foundation for Health & Development.

Koreans may be unfamiliar with Uzbekistan, but may have heard of the people of Goryeo (ancient name of Korea). I think many Koreans have felt sad while watching television programmes concerning the people of Goryeo, who were transported to an alien land.

The victims of a painful history were forced to migrate to Central Asian countries in the 1930s, especially to Uzbekistan. About 200,000 people of Goryeo currently reside in the country, accounting for 0.9 percent of the Uzbek population.

Uzbekistan is one of Korea's main targets for overseas investment, and Korean companies had invested US$700 million by late 2002 because of the market potential and the country's strategic importance, linking Asia to Europe.

The nation's crucial location means it is very important area in terms of health and medical issues as well as economic and strategic matters. Unlike infectious diseases in the past which were limited to certain areas or nations, pandemic diseases such as Aids or avian influenza are threatening the world. Therefore, it is obvious that if the health and medical environment in Uzbekistan is improved, the danger of spreading possible infectious illness and other issues emerging in Asia or Europe area will be reduced.

Though the health and medical environment is improving in Uzbekistan with a lowered death rate and life expectancy increasing, it is still not in what could be described as a good condition. Especially, the importance of juvenile health is highlighted in the nation where the proportion of children aged under 14 accounts for 36 percent of the population, the largest among Central Asian countries.

Recognizing the importance of health, the Korea International Foundation for Health & Development (KIFHAD) formed a health and medical partnership with Uzbekistan and pledged US$400,000 for children's hospitals in the Tashkent area.

The aid will mainly be used for replacing out-of-date medical equipment, repairing facilities and educating medical personnel. Korea has successfully implemented projects to provide health and medical support for many nations such as North Korea, Eritrea in Africa, Sri Lanka, Indonesia, Vietnam and Pakistan. Based on their experience, the support also will contribute to enhancing the nation's health and medical environment and pave the way for the establishment of further partnerships in the field between the two nations.

Moreover, Uzbekistan's President Islam Karimov will visit Korea on 28 March on the invitation of Korea's President Roh Moo-hyun. I hope Korea's health support to Uzbekistan will promote friendship between the two in practical terms - increasing trade and investment and the joint development of energy and mineral resources. I also hope the warm heart of Koreans will be felt by the people of Goryeo in Uzbekistan.

UZBEK MPS DISCUSS TERRORISM, NUCLEAR-FREE REGION

The committee on security issues under the Legislative Chamber (the Uzbek parliament's lower house) has held a seminar on the subject: "Topical issues of security in Uzbekistan's foreign policy". Members of the Senate (parliament's upper house), experts and media representatives were invited to take part in the meeting.

The seminar heard reports on topical issues of regional security, international cooperation in fighting terrorism, religious extremism and drug trafficking, and also on Uzbekistan's initiatives in maintaining security and stability in the region and in the creation of a nuclear-free zone in Central Asia.

The seminar noted that our country's stance on regional security including information security is based on a sound and realistic assessment of the current situation, taking into account numerous aspects which affect the maintenance of security.

The meeting also spoke about the following: the need for the region's states to join forces; the development of new approaches in solving the existing problems; and the importance of mutual cooperation and partnership in the implementation of specific projects.

At the same time, the meeting noted the significance of initiatives by Uzbekistan such as the development of integration processes in Central Asia and the formation of a common market.

BUNINESS

DAEWOO LEADS KOREAN BUSINESS IN UZBEKISTAN - DAEWOO INTERNATIONAL CEO

Daewoo International CEO Lee Tae-yong welcomed the visit of Uzbek president to South Korea and says that the company is planning to implement new projects in Uzbekistan in his article at The Korea Herald.

"Uzbekistan has developed politically and economically since its Independence from the Soviet Union. Along with its rapid development, Daewoo International has contributed to building solid business partnerships with Uzbekistan through promoting trade and investment," Lee Tae-Yong said.

Since its establishment in 1992 as the first Korean-invested trading company in Uzbekistan, Daewoo International has been closely involved with the nation's cotton industry.

By purchasing a total of one million tonnes of Uzbekistan-made cotton so far, the company has supplied cotton in good quality to outer regions including Korea, China and Southeast Asian countries, he said.

"Our company launched the Daewoo Textile Company in 1996 in the state of Fergana, and established a cotton-spinning mill the following year. This has helped speed up and improve the local economy by employing 1600 local residents."

Since then, the company has played a significant role in the country's economy as well as becoming a role model as a successful foreign company in Uzbekistan.

In addition to the success of the textile industry, the company has actively invested in UzDaewooAuto, a joint venture between the Association of Uzavtosanoat and Korea's Daewoo Motors, between 1996 and 1997 to develop a domestically made automotive parts facility.

Currently, Daewoo International is pushing ahead with a series of projects including facilitating computer education labs and heart disease clinics by utilizing the Economic Development Cooperation Fund, a type of Overseas Development Assistance provided by the Korea Export-Import Bank, Lee Tae-yong said.

The company hopes to speed up developing the country's education and health system by cooperating in information technology and providing high-tech medical equipment.

"With our dedication to reforming the nation's education system, we have provided a quantities of equipment and training programs in cooperation with the Human Resource Development Service of Korea under the Korean government's Ministry of Labour."

"We have also widened the country's export structure by increasing investments in areas such as oil refining and natural resources. The company is planning to establish mutual ventures with other Korean companies in the exploration and extraction of natural resources such as oil, gas, gold, uranium and zinc in Uzbekistan," Lee Tae-yong said.

"We think the plan would make contributions to boost up the nation's economy. We hope to strengthen bilateral ties between the two countries through the president's visit to South Korea."

"We, Daewoo International who has spearheaded business in Uzbekistan, hope to bridge the gap between the two countries as well as continuing our contributions in promoting cooperations with Uzbekistan in the future. We, once again, welcome the Uzbekistan President and the first lady," CEO of Daewoo International added.

UZBEKISTAN TO GET $300 MLN LOAN FROM ASIAN DEVELOPMENT BANK

The Asian Development Bank will grant Uzbekistan loans worth $300 million over the next three years, the bank said on 28 March.

About $2 million will be allocated as grants, the bank's Tashkent office said, adding that the bank's new strategy in the Central Asian country aimed to help the underprivileged and boost economic development.

"The strategy for 2006-2010 covers four main spheres of assistance - agriculture, private sector development, regional transportation and customs transit cooperation, and social services modernization, with special attention for children's early development and secondary education," the bank said, adding that the strategy includes 14 projects for 2006-2008.

The Asian Development Bank has granted loans worth $915 million to Uzbekistan since 1996.

RUSSIAN-UZBEK BUSINESS COMMUNITY HOLDS MEETING

Uzbek embassy in Moscow (Russia) hosted the first meeting of Russian-Uzbek community "Economic Dialogue" last Friday.

The event was attended by businesses, representing almost all sectors of Russian economy. The meeting was also attended by Lukoil Overseas, Wimm-Bill-Dann, Sistema and others. Russian investors informed participants about their investment plans in Uzbekistan and noted that Uzbekistan is interesting for all Russian businesses.

UZBEK-BELARUSIAN RELATIONS ARE DEVELOPING - ENVOY

Friendly relations are developing between Uzbekistan and Belarus, Belarusian envoy to Uzbekistan Nikolay Demchuk said at the press conference on 24 March.

Belarus is entering Uzbek market with high temps in recent months. The country organised first fair-exhibition Belarus-2006 and several business delegations of Belarus.

Demchuk said that turnover between Uzbekistan and Belarus made up US$56 million in 2005 and increased by 11% compared to 2004. He said trade-economic relations between countries are growing. Currently, seven joint ventures with Belarusian investments are operating in Uzbekistan, of which 4 are with 100% Belarusian capital.

The significant part of bilateral turnover fell to share of Belarusian export – US$42 million (up 7.6% year-on-year). Uzbekistan exported products to Belarus for US$14 million (up 23% year-on-year). Demchuk said during exhibition in Uzbekistan, the Uzbek and Belarusian businesses hold over 350 negotiations and achieved 170 agreements.

ICT DEVELOPMENT IN UZBEKISTAN 2005 REPORT PUBLISHED

"Assisting the Government of Uzbekistan in the formulation and implementation of ICT for development policy" Project (ICTP) has prepared a "Review of ICT Development in the Republic of Uzbekistan" Report for 2005. The report presents the assessment of various factors affecting the development of information and communication technology in the country and identifies their general trends.

The review traces the changes in the ICT development indicators and provides recommendations in six parts, including "Access to global information resources", "ICT in education", "Use of ICT in the society", "E-Government", "E-Commerce", and "State Policy in the Sphere of ICT".

The review comments on the general positive trend in ICT development observed in the country, while admitting to the existence of certain problems, which had been mentioned in the earlier reports on similar research projects carried out by the UNDP, particularly, in the segment of e-Government and e-commerce.

In particular, the review points out high growth rates on several indicators, such as the number of mobile network subscribers and regular Internet users. A substantial decrease in the prices for these services has been recorded during the past several years resulting from strong competition in these markets. Thus, coming to the end of 2005 the average tariff for one minute of the outgoing call within the network decreased to 2.5 cents, and for the outgoing calls within Uzbekistan to 5.92 cents. To compare, the same calls were charged 0.11 cents a minute in 2001.

As the benefits and advantages of using modern technology are becoming more and more apparent, ICT is increasingly viewed as a powerful tool that opens new opportunities for social and economic development. In view of this fact, the review comments on the importance of ensuring easy access to ICT and its application as a strategic tool in different spheres.

The report may be of interest not only to the IT specialists, but to a general audience – scientists and scientific workers, teachers, students, journalists, managers – basically anyone who would like to familiarize with the current condition of ICT development in Uzbekistan.

UZBEKNEFTEGAZ TO CONSTRUCT GASHOLDER IN TASHKENT REGION

Uzbekneftegaz, national oil and Gas Company of Uzbekistan, is planning to construct underground gasholder in Tashkent region (Alimkent) in 2006-2007.

Total cost of the project is US$60 million, of which US$40 million was provided by the Chinese government. The remaining part of the fund will be own funds of Uzbekneftegaz.

The capacity of gasholder will be 600 million cubic metres, which will improve gas supply to Tashkent region in winter period.

Currently, consumers of Tashkent region receive gas from gasholders in Gazli, Severosoh and Khodjaabad. The total capacity of them is 4.5 billion cubic metres.

The feasibility study of the project is under consideration in authorised body. It is planned that the corresponding tender will be announced in the second half of 2006 to determine general contractor.

LEASING OPERATIONS IN UZBEKISTAN DOUBLED IN 2005

The volume of leasing operations in Uzbekistan doubled in 2005 compared to 2004 and made up 89.7 billion soums, financial analytic of International Finance Corporation Umedjon Umarov said on Friday.

The parliament of Uzbekistan adopted legislation on financing leasing operations due to credits in 2002. In the same year, the Uzbek president freed equipment imported on leasing operation from customs duties, VAT and some other taxes. These measures allowed to cut cost of leasing operations by 40% and make leasing competitive with credits of the banks.

Umarov said the number of leasing operations increased from 2,810 to 2,884. He said the volume of transactions of leasing companies increased by 1.9 times to 64.2 billion soums and the bank by 2.1 times to 22.2 billion soums.

Currently, 11 leasing companies operate in Uzbekistan. At the same time, 14 commercial banks of the country and two NGOs render leasing services.

IFC expert said the main positive factor in Uzbek leasing market is decrease of the share of Uzselhozmashleasing, state-owned company. Umarov said the decrease of the share of Uzselhozmashleasing is result of increase of leasing operations by other members of the market. Umarov said the share of Uzselhozmashleasing was 64% in 2004 and it fell to 45% in 2005. The volume of operation of Uzselhozmashleasing made up 40.7 billion soums or increased by 43%, while other participants of the market increased their operation to 49 billion soums or 3.1 times.

ICTP DEVELOPS STUDY ON USE OF OPEN SOURCE SOFTWARE

Publication of research study "Prospective Use of FOSS for Development of Uzbekistan" UNDP's ICTP project published the research paper on "Prospective Use of Free and Open Source Software (FOSS) for Development of Uzbekistan".

The research paper, which is the first document of such kind in Uzbekistan devoted to FOSS movement, aims to draw attention of the government of Uzbekistan, representatives of educational establishments and business sector to technological solutions offered by FOSS, to explain the advantages of FOSS implementation and possible risks, to indicate conditions for realization of successful open source initiatives.

As Uzbekistan has joined Berne Convention for the Protection of Literary and Artistic Works and after signing of the Memorandum of Software Producers of Uzbekistan, in the nearest future country will face the issue of reliable protection of the rights of software copyright holders, seek ways to combat computer piracy, and consequently, payments for high license costs for utilizing closed commercial software.

Hence, the introduction of FOSS can offer original solutions to the problems that cannot be resolved by using the commercial software, and can finally lead to significant savings in government's IT expenses.

The research paper includes the study of the most important aspects of FOSS technology, examines the best international practices and most successful open source projects, covers the statistical information on currently used software in the government's IT environment, embraces the corresponding analysis of usage of commercial software and FOSS in Uzbekistan, provides recommendations and suggests approximate Action Plan of FOSS implementation taking into account short-term and long-term perspectives.

The current research can help Uzbekistan to develop the specific steps required to work-out legal, political and technical norms and standards aimed at strengthening the FOSS implementation in Uzbekistan.

UNDP's project "Assisting the Government of Uzbekistan in the formulation and implementation of ICT for development policy" is aimed at supporting the development of ICT policy in Uzbekistan and facilitating use of ICT for achieving development goals.

CHINESE COMPANY TO CONSTRUCT OF SEWAGE CLEANING ESTABLISHMENT IN NAMANGAN

A delegation of Tyanchen, Chinese national chemical-engineering corporation, visited Namangan. The Chinese company is planning to construct of sewage cleaning establishment in Namangan due to credit of China. Total cost of the project is US$20 million.

Yan Chunu, head of Chinese delegation, said modernisation and reconstruction of sewage cleaning establishment is one of the problems of communal sphere in Namangan region. The Chinese specialists were attracted to solve this problem.

During the visit, the Chinese delegation solved several issues connected with realisation of the project.

SOCIETY

UNICEF PROMOTES MOBILISATION OF CHILDREN PARLIAMENT

The United Nations Children's Fund (UNICEF) and the government of Uzbekistan started realization of the project "Improvement of potential of Children parliament to improve school environment".

The project aimed at stirring up children parliament and formation among its members skills on creation of school self management. The project is realized in cooperation with public centre "Atrof muhit va soglom hayot".

The activity of children parliament, created in Uzbekistan in 2002, demonstrated effective participation of youth in solving problems of school environment. In assistance of Public Education Ministry, Ombudsman and Kamolat movement, young MPs delivered problems of schools to their contemporaries and elders.

Within realization of the project, it is planned to hold preliminary study to determine conditions in 1,000 schools in 199 districts to find out ways of improvement of school environment.

During spring session, members of children parliament will be trained on topic "School of kindly relation to children – stirring up children parliament and school self-government: tool of realization of Convention on Children Rights".
It is expected that over 200 young MPs from all parts of Uzbekistan will take part in the work of the session.

After spring session, it is planned to hold seminars for initiative group of volunteers of children parliament on organization of elections in schools, as well as self-governing bodies in places. It will also allow to inform children with Convention on Children Rights.