6 April, 2006

Content:
Politics
Uzbek president tours new facilities in capital
Ergash Shaismatov appointed Deputy Prime Minister of Uzbekistan
Delegation of Uzbek parliament to visit Saint Petersburg
Permanent representative of Russian in EurAsEC meet Uzbek Foreign Ministry's officials
Economy:
Uzbek-Russian business forum to boost economic ties
NBU signs two agreements with Korean banks worth US$30m
Endevour LLC acquires 39.94% shares of Bukhara Electricity Network
Number of mobile users in Uzbekistan reaches 1.3m
Uzbekistan to privatise 25% shares of Lola Atir Upa
Uzbekistan puts for sale 45.4% shares of Algoritm
Uzbekistan announce tender on privatisation of Ammaphos
Italy shares experience
Altay business delegation visits Uzbekistan
Three healthcare exhibitions open in Uzbek capital

Society
Equipment for regional centers of emergency medical aid
Council of Culture Ministers of SCO member-states to meet in Tashkent
"Russian Education Today" exhibition-presentation to be held
Russian journalists prepare documentaries about ancient Uzbek cities
Uzbek theaters conduct tours to Russia

POLITICS

UZBEK PRESIDENT TOURS NEW FACILITIES IN CAPITAL

President of Uzbekistan Islam Karimov has visited a number of newly-commissioned buildings in the capital city of Tashkent on 4 April.

As part of the tour Karimov visited a family clinic, which is able to provide services to about 30,000 people, and a textile enterprise Muruvvattex.

Uzbek leader talked with workers of clinic and enterprises on created conditions for workers.

On the same day, Uzbek president visited another clinic in Samarkand Darvoza neighbourhood in Tashkent city. During the visit to neighbourhood, Islam Karimov acquainted with branch of Muruvvattex. President Karimov met representatives of neighbourhood. Later, Uzbek head visited Sergili district of Tashkent city and familiarised with road construction.

Uzbek president gave corresponding recommendations and orders to responsible workers.

ERGASH SHAISMATOV APPOINTED DEPUTY PRIME MINISTER OF UZBEKISTAN

Ergash Shaismatov has been appointed Deputy Prime Minister of Uzbekistan, in charge of machinery, ferrous and non-ferrous metallurgy, oil and gas, geology, energy, chemical production, standardization and metrology, and state and mobilization resources sectors.

A corresponding decree was signed by the President of Uzbekistan Islam Karimov on 3 April 2006.

By another decree of President Karimov on the same day, Utkir Sultanov was relieved of the above-named duties and the post of Deputy Prime Minister.

DELEGATION OF UZBEK PARLIAMENT TO VISIT SAINT PETERSBURG

The Delegation of Oliy Majlis (parliament) of the Republic of Uzbekistan headed by the Chairman of the Legislative Chamber Erkin Halilov will visit Saint Petersburg to participate in the events dedicated to 100th anniversary of the State Duma (parliament) of Russia on 27-28 April.

PERMANENT REPRESENTATIVE OF RUSSIAN IN EURASEC MEET UZBEK FOREIGN MINISTRY'S OFFICIALS

Permanent representative of Russian in Eurasian Economic Community (EurAsEC) and deputy chairman of committee on economic integration of CIS of Chamber of Commerce and Industry of Russia Evgeniy Mihaylov started visit to Uzbekistan on 4 April.

On the same day, Mihaylov met the leadership of Foreign Ministry of Uzbekistan. Speaking with journalists, Mihaylov said he is satisfied with results of meeting with Deputy Foreign Minister of Uzbekistan Ilhom Nematov and Permanent representative of Uzbekistan in EurAsEC Ostonqul Mirzaev.

The sides considered issue on interaction in legal scheme in innovation activity, healthcare, agriculture market, technologies and others.

Mihaylov said the views of the sides are similar and added that the great job should be done, in particular in improvement and harmonization of tariff rates. He said the sides plan to start financing transport space. "We are creating bank in Almaty with charter capital of US$1.5 billion, which will finance EurAsEC projects and we have information that some of EurAsEC member states want to join."

Russian and Kazakhstan are creating EurAsEC bank and the sides agreed that charter capital of the bank would be US$1.5 billion. EurAsEC includes Belarus, Kazakhstan, Kyrgyzstan, Russia, Uzbekistan and Tajikistan and it was set up in October 2000 to solve economic integration of member-states.

Uzbekistan will host Uzbek-Russian business forum on 5-6 April, organized by chamber of commerce and industry of two countries. The Russian side will be represented by over 100 companies from regions of Russia.

Participants of the forum will participate in the opening ceremony of the second international exhibition "Metallurgy. Chemical. Energy" (IndustrialExpo Uzbekistan), which will be held at Intercontinental Hotel on 5-7 April.

Evgeniy Mihaylov informed he is participating at the Russian-Uzbek business forum as deputy chairman of committee on economic integration of CIS of Chamber of Commerce and Industry of Russia.

He said the sides should also focus on establishment of ties among small and medium businesses of two states, to share of which fell 40% of GDP.

Mihaylov said it is important that arbitral bodies of two states will meet during the forum and sign agreement on international commercial arbitration, which will help Uzbek and Russian businesses work more confidently.

Farit Muhammedshin, Ambassador of Russia to Uzbekistan, said the first aim of the forum is to stir up regional cooperation. He said the Russian delegation includes almost all governors of Russian regions and therefore the main task of the forum is to present interests of the sides and continue economic dialogue. The sides will also develop recommendations on trade-economic relations between two countries, he said.

ECONOMY

UZBEK-RUSSIAN BUSINESS FORUM TO BOOST ECONOMIC TIES

Uzbek-Russian business forum opened at Intercontinental Hotel in Tashkent on 4 April. Representatives from over 100 companies and large enterprises as well as chambers of trade and industry from 17 regions of Russia are taking part in two-day event. The Russian delegation is led by Boris Pastuhov, First Vice President of Chamber of Commerce and Industry of Russia.

Russia is one of the largest trade partners of Uzbekistan. Trade turnover between two states increased from US$1.6 billion in 2004 to US$2 billion in 2005. The share of Russia in Uzbek foreign trade turnover makes up almost 22%.

The Uzbek side presented reports on business climate in Uzbekistan and recent legislative initiatives, which cut tax rates and number of inspection by controlling bodies. It was noted that over 880 enterprises and objects for US$70 million were sold in 2005 in Uzbekistan and it is planned to increase this number to US$120 million.

Chamber of Commerce and Industry of Uzbekistan at support of Fund Forum of Art and Culture of Uzbekistan organized several events, directed to establishment and developments of contacts among Uzbek and Russian entrepreneurs, as well as boosting trade-economic cooperation.

Chambers of Commerce and Industry of Russian and Uzbekistan signed agreement on cooperation in international commercial arbitration. Boris Pastuhov, First Vice President of Chamber of Commerce and Industry of Russia, and Nabi Kasimov, Deputy Chairman of Chamber of Commerce and Industry of Russia inked document.

Chambers of Commerce and Industry of Tashkent city signed cooperation agreement with their counterparts from Moscow and Kostroma regions.

NBU SIGNS TWO AGREEMENTS WITH KOREAN BANKS WORTH US$30M

National Bank of Uzbekistan for Foreign Economic Activities (NBU), largest Uzbek bank, attracted credit lines of two South Korean banks - Korean Exchange Bank (ΚΕΒ) and Eximbank for US$30 million.

The share of NBU in total assets of bank system of Uzbekistan makes up 35% and in total volume of capital – 55%. The bank has 99 branches and departments in Uzbekistan and subsidiary Azia-Investbank in Moscow, Russia. Its correspondents' network includes more than 600 banks in 67 countries.

Korean Exchange Bank allocated to NBU credit for US$20 million and Eximbank issued loan worth US$10 million.
NBU and KEB signed agreement on bilateral mutually beneficial cooperation development, which envisages allocation of US$20 million to finance trade operations.

This agreement foresees cooperation in syndicated crediting of joint projects and participation in bank consortiums, financing of investment projects, development of trade financing programme, including pre-export financing, etc.

The Uzbek bank inked with Korean Eximbank agreement on export crediting, which aimed at financing of supplies of Korean equipment, goods and services. In case of successful crediting, Eximbank plans to earmark additional US$10 million within 2006. The credits were attracted without guarantees of the Uzbek government.

NBU and Korean Eximbank have been cooperating since 2000 and the South Korean bank issued US$58.9 million of loans, including US$10 million to finance bilateral export supplies and US$48.9 million to realisation of investment projects. In particular, the bank earmarked US$35.9 million to realise production of Matiz cars at UzDaewoo Auto, Uzbek car manufacturer.

ENDEVOUR LLC ACQUIRES 39.94% SHARES OF BUKHARA ELECTRICITY NETWORK
Endevour LLC (USA) acquired 39.94% shares of Bukhara Electricity Network, supplying electricity to consumers, for US$4.06 million.

As earlier reported, another US companies Dawson Holdins LLC and Talaxico Limited Company purchased 44% stake in Ferghana Electricity Network for US$3.76 million. Bukhara Electricity Network specializes on supply and realization of electricity to consumers in Bukhara region. The company has in balance 92 power substations with capacity of 695,000 kilovolt-ampere. Its charter capital is 9.05 billion soums.

The Uzbek government owns 51% stake in the company and labour possesses 9.06% shares. The deal was carried out at Uzbek Stock Exchange during primary floatation of state assets of the enterprise.

NUMBER OF MOBILE USERS IN UZBEKISTAN REACHES 1.3M

Number of mobile users in Uzbekistan reached 1.3 million, while number of internet users made up 1.08 million in the first quarter of 2006.

These figures were announced at the session of the complex of Cabinet of Ministers of Uzbekistan on information systems and telecommunication dedicated to social-economic development in the first quarter of 2006.

It was noted that the sector rendered services for 114.6 billion soums, including 110.2 billion soums in information-communication technologies (up 36.4% year-on-year) and 4.4 billion soums in information and postal (up 14.7% year-on-year).

UZBEKISTAN TO PRIVATISE 25% SHARES OF LOLA ATIR UPA

State commission for conducting tenders on the sale of the state assets to the foreign investors announced open tender for privatisation sale of the 25% share package of joint stock company Lola Atir Upa.

The tender was announced based on the Resolution of the President of the Republic of Uzbekistan ? PP-29 dated 14 March 2005.

The tender announcement said 45,602 shares of common stock of the Lola Atir Upa constituting the aggregate of 25% of the company's total issued shares being offered for sale.

Starting bidding price for the said package of shares is not less than US$363,300. At that, the preference will be given to the company ready to offer the highest bid for the 25% of shares of the Company and to take upon itself the investment obligations.

Lola Atir Upa is situated in Tashkent city of the Republic of Uzbekistan, its main activity is producing perfumes and cosmetics for public use.

The Tender Documentation can be purchased till 01 2006 and the bid submission deadline is 15 June 2006.
Full text of tender announcement posted at UzReport Tenders.

UZBEKISTAN PUTS FOR SALE 45.4% SHARES OF ALGORITM

State commission for conducting tenders on the sale of the state assets to the foreign investors announced open tender for privatisation sale of the 45.4% share package of joint stock company Algoritm.

The tender was announced based on the Resolution of the President of the Republic of Uzbekistan ? PP-29 dated 14 March 2005 and with the participation of the investment company FINAM (Russia) as a Financial Advisor, hereby announces?

The tender announcement said 179,568 shares of common stock of Algoritm, constituting the aggregate of 45.4% of the company's total issued shares, being offered for sale. Starting bidding price for the said package of shares is not less than US$6,441,930. At that, the preference will be given to the company ready to offer the highest bid for the 45,4% of shares of the Company and to take upon itself the investment obligations. It is also foreseen to realize to the winner of the tender the 6,8% of shares of the issuer.

Algoritm is situated in Tashkent city, its main activity is production of products with production and technical purpose and consumer goods.

The tender documentation can be purchased till 01 June 2006 and the bid submission deadline is 15 June 2006.
Full text of tender announcement posted at UzReport Tenders.

UZBEKISTAN ANNOUNCE TENDER ON PRIVATISATION OF AMMAPHOS

State commission for conducting tenders on the sale of the state assets to the foreign investors announced open tender for privatisation sale of the 49% share package of the joint stock company Ammophos.

The tender was announced based on the Resolution of the President of the Republic of Uzbekistan ? PP-29 dated 14 March 2005 and with the participation of the Miller Trading GmbH (Switzerland) as the Financial Advisor.

The tender announcement said 484,057 shares of common stock of Ammophos, constituting the aggregate of 49% of the company's total issued shares, are being offered for sale. Starting bidding price for the said package of shares is not less than US$17,164,400. At that, the preference will be given to the company ready to offer the highest bid for the 49% of shares of the company and to take upon itself the investment obligations. Ammophos is located in Almalyk city, Tashkent region. It began its operation in 1969. Ammophos is the largest nitrogenous phosphate mineral fertilizers producer in Uzbekistan, which provide 85% of agriculture demand of Uzbekistan for phosphate fertilizers. The tender documentation can be purchased till 01 June 2006 and the bid submission deadline is 15 June 2006.

Full text of tender announcement posted at UzReport Tenders.

ITALY SHARES EXPERIENCE

Seminar on the "Innovations and transferring technology" was held on 3 April at Poytaht Hotel as a part of the first course "Training trainers".

This course was organised with the assistance of the Italian National Institute of Foreign Trade and consists of three modules. The first module was conducted in November 2005, and the second one started today. The final module will take place at the end of the month.

The second and the third modules envision familiarization with the different aspects relating to the transfer of technology, study of the transition from the research and production to the transfer of technology, consideration of the possibilities of increasing the competitiveness through research and innovations, analysis of the advantages and risks associated with the innovative technology, familiarization with the procedure for drafting, implementing, monitoring, and assessing the EU projects, review of the subjects and problems of training in the epoch of globalisation, identification of the advantages resulting from cooperation with small and medium-sized companies through analysis of merger forms, presentation of the "Italian model of consortium" and other forms of consortiums.

Professor Tiberio Graziani, a chemist, and director of the Technological Park of Umbria of Sitech s.c.a.r. Company with an extensive work experience in Germany, US, and Holland on conducting applied and scientific research in the field of new materials (ceramics) delivered a lecture at the seminar. He is the author of research works and articles published in newspapers and scientific journals of different countries.

During the lecture, Mr. Graziani said, "the integration of innovations in production is associated with certain financial risk. Moreover, in the case of failure, the entrepreneur may loose his image. Therefore, he should be brave and full of entrepreneurship spirit and enthusiasm."

This is a good chance for Uzbek entrepreneurs to learn from the foreign experience and successfully apply their knowledge in practice.

ALTAY BUSINESS DELEGATION VISITS UZBEKISTAN

A delegation of Altay region (Russia) arrived in Uzbekistan with trade mission on 3 April. The Russian region's delegation led by head of deputy governor of the region Yakov Ishutin and includes representatives of businesses of the region.

The mission is organised at support of chambers of commerce and industry of Uzbekistan and Altay region and department on international and interregional relations of Altay.

It is expected that the mission will boost trade-economic cooperation between Uzbekistan and Altay. Altay is one of the largest trade partners of Uzbekistan among Russian regions.

Uzbekistan mainly exports to Altay fruits, vegetables, rice, nuts, nitric and sulfate acid, cotton and cotton yarn. Altay exports to Uzbekistan timber and timber materials, pharmaceutical products, power and boiler equipments, chemical products and others.

The visit concurs with Uzbek-Russian business forum, which will be held in Tashkent on 5-6 April.

THREE HEALTHCARE EXHIBITIONS OPEN IN UZBEK CAPITAL

Three healthcare exhibitions will open in Tashkent today – the Eleventh Uzbekistan International Healthcare Exhibition (TIHE-2006), 1st Central Asian International Exhibition "Medicines, Pharmaceutical Ingredients, and Technologies for Pharmaceutical Industry" (PHARMACY/PHARMTECH 2006) and The 2nd Uzbek International Exhibition "Stomatology Uzbekistan 2006".

These three events and the second Tashkent International Dentists Forum will be held on 4-7 April in the central showroom of UzExpoCenter.

ITE Uzbekistan and ITE Group Plc international exhibition companies organised the exhibitions. ITE is the leading organizer of the largest medical exhibitions in CIS and Eastern Europe, including BIHE (Baku), Hospital, Pharmaceuticals, Stomatology (Saint Petersburg), TIHE (Tashkent), Pragodent (Prague), Zdravoochranenie (Healthcare), and Ukrainian Stomatology Salon (Kiev), Zdravoochranenie (Healthcare, Moscow), DIHE (Dushanbe), and KIHE (Almaty).

TIHE was founded in 1995 and it is one of the largest events in Central Asia. During ten years, the exhibition allowed to develop and establish contacts between representatives of medical sphere of Uzbekistan and foreign countries.

During its operation, over 700 companies from over 40 countries of the world participated the exhibition and over 70,000 people visited it.

Stomatology of the 21 century has leaped forward in many directions. Modern stomatology is not simply about health, but also about beauty. New materials and new methods of treatment are introduced. Today, a dentist clinic or an office cannot do without up-to-date equipment and modern materials. So how can consumers grasp such a huge amount of information? In this sense, an exhibition and a conference held together are the best solution.

This is the second year that the event attracts great attention on the part of stomatology market participants. This is the place for them to meet new clients, find partners to discuss strategic plans and sign contracts.

The exhibition and forum Stomatology 2006 provide consumers the opportunity to familiarize themselves with a wide range of modern stomatological equipment and unique materials, and to get to know as much as possible about the medications and new methods of treatment and cosmetology.

This year more than 20 companies from the countries, such as Germany, Russia, Czech Republic, the US, Ukraine, and Uzbekistan will participate in the exhibition and the forum.

It is remarkable that Uzbek companies, distributors of the leading stomatology companies of the work make up around 45% of the exhibition participants.

The dentists forum will discuss the "Actual issues of modern stomatology". The leading scientists in the area of stomatology from around the world will attend the event. PHARMACY/PHARMTECH 2006 will present achievements of medical sphere. This exhibition promotes health life style and reviews achievements of medical sector.

It should be noted that 24% of participants of exhibitions represent Russia and the same share fell to Uzbekistan. The share of Germany is 15% and remaining 37% shared among representatives of other countries.

It is planned to hold seminars and presentations within the exhibitions.

SOCIETY

EQUIPMENT FOR REGIONAL CENTERS OF EMERGENCY MEDICAL AID

The supplies of medical technology intended for equipment of regional centers of emergency medical aid will be started before the end of this year.

This was acknowledged by the Deputy Minister of Healthcare Marat Hodjibekov during the press conference held on 3 March at Intercontinental Hotel.

Deputy minister said, "the reforms in the system of emergency medical aid are the priority direction in healthcare. The country has a unique system of emergency medical assistance unified into a single body administered by the National Republican Center of Emergency Medical Aid. Investments funds including foreign investments were attracted to develop its capacity. In particular, the Japanese grant, and the beneficial loan of the government of Spain were attracted. WE are currently working to arrange for a new loan with Islamic Development Bank. The supplies on this project should be started before the end of this year, and are envisioned for re-eqipment of the regional branches of the Center of Emergency Medical Aid."

Hodjibekov also said that in parallel the Healthcare Ministry was considering the possibilities of developing new investment sources, which will cover the third stage of the project, i.e. equipping the emergency medical aid divisions of all regions.

COUNCIL OF CULTURE MINISTERS OF SCO MEMBER-STATES TO MEET IN TASHKENT

The meeting of the Council of Culture Ministers of the Shanghai Cooperation Organisation member-states will be held in Tashkent on 27-28 April. The Minister of Culture and Mass Communication of Russia Alexander Sokolov will visit Uzbekistan to participate in the event.

Also, in the framework of the Council meeting, the Culture Ministry of Uzbekistan and the Federal Agency for Culture and Cinematography of Russia will organize an exhibition entitled "Patchwork of Russia", to be held on 25 April - 2 May at the Central Showroom of the Arts Academy of Uzbekistan. The opening ceremony will be held on 28 April.

"RUSSIAN EDUCATION TODAY" EXHIBITION-PRESENTATION TO BE HELD

The first exhibition-presentation in the history of Uzbek-Russian bilateral relations entitled "Russian Education Today" will be held on 17-22 April at UzExpoCenter. Rectors and representatives of famous Russian universities and institutes will participate in the event. The conference on "Russian-Uzbek cooperation in the field of higher education: today and tomorrow" is scheduled for the same week.

RUSSIAN JOURNALISTS PREPARE DOCUMENTARIES ABOUT ANCIENT UZBEK CITIES

In April "Vokrug Sveta" (Round the World) television show broadcasted on "Russia" channel will show two documentaries about Uzbekistan, UzbekTourism Company's press service reported.

Invited by the national tourism administration of Uzbekistan, the shooting crew of the famous Russian television show visited the cities of Samarkand and Bukhara in the mid-March of this year. The journalists participated in the celebration of Navruz national holiday, baking national bread and pilaw, visited a traditional Uzbek wedding, and of course went sightseeing.

"The high quality material recorded during the trip was compiled into two documentaries about Uzbekistan, which undoubtedly will find a positive response in Russia, which in turn should influence the development of tourism in the cities of Bukhara and Samarkand," said the director of the showing team Tatyana Tertyshnikova in her letter to Uzbektourism Company after completing the television project.

Tertyshnikova said that accordint to preliminary plans, the programmes about Uzbekistan would be broadcasted on Russia Channel on 8 and 22 April of this year at 9.20 a.m.

It is expected that the programme will be of high interest to the Russian audience, which is supported by the professionalism demonstrated by the staff of the Russia Channel, and the rating of the Round the World show.

Along with the main tourist sites of the cities, Russian journalists also visited Sufiy relics, participated in "zikra" - collective meditation, visited the workshops of engravers and jewellers, witnessed the ancient traditions of carpet weaving. Besides they visited the mahallas (rural communities) of Bukhara, saw local residents prepare to celebrate Navruz, which by the way the crew celebrated in Samarkand during the sleepless night by the fireplace, where the traditional food of Navruz - sumalak - was being cooked. Also there was a lot of singing, dancing, and of course shopping at the famous bazaar of Samarkand, and a lot more.

UZBEK THEATERS CONDUCT TOURS TO RUSSIA

The Youth Theatre of Uzbekistan headed by the theater's director Nabi Abdurahmanov will go on tour to Saint Petersburg on 9-13 April.

Ilkhom Theater will also conduct a tour to Moscow on 12-22 April. The tours of Uzbek theaters to Russia are organised by the Russian Embassy in Uzbekistan and the Office of the Russian Foreign Center.