August 31, 2007

Politics:
Oliy Majlis, Cabinet of Ministers and President’s Office hold joint session
President of Uzbekistan meets deputy chairman of Turkmenistan’s Cabinet of Ministers
Foreign ambassadors lay flowers to Independence and Humanism Monument
Economics:
Islam Karimov visits “Made in Uzbekistan” exhibition
Uzbekistan Airways participates in Made in Uzbekistan
Foreign investments to total US$41.4m in 2007
Russian Energomash Group submits request for acquisition of additional 3% in Suvmash
Cement plant construction launched in Jizzakh
Society:
President familiarizes with new objects in Tashkent
First 100 students enrolled in oil and gas university

POLITICS

OLIY MAJLIS, CABINET OF MINISTERS AND PRESIDENT’S OFFICE HOLD JOINT SESSION

Joint session of the Oliy Majlis (Parliament) of the Republic of Uzbekistan, Cabinet of Ministers and the President’s Office devoted to the country’s 16th independence anniversary was held on August 30.

Deputies of the Legislative Chamber and members of Senate, representatives of the President’s Office and the Cabinet of Ministers, heads of ministries and departments, chairman of Joqargy Kenges of Karakalpakstan, hokim (mayor) or Tashkent and hokims of regions participated in the meeting.

President of Uzbekistan Islam Karimov made a report on “Uzbekistan: 16 years of independent development” at the session, in which he analyzed the country’s development and achievements in the years of independence, and set tasks for the future.

PRESIDENT OF UZBEKISTAN MEETS DEPUTY CHAIRMAN OF TURKMENISTAN’S CABINET OF MINISTERS

President Islam Karimov received deputy chairman of the Cabinet of Ministers of Turkmenistan, foreign minister Rashid Meredov, who is on a visit to Uzbekistan, on August 29.

Welcoming the Turkmen official, President Karimov said his visit was a sign of developing relations between the two neighboring countries.

The sides discussed issues of further strengthening bilateral relations and fuller use of the available potential.

Rashid Meredov, in his turn, said Turkmenistan was interested in multilateral cooperation with Uzbekistan.

Uzbek and Turkmen people have lived in friendship and consent for ages. Leaders of the two states held a number of top-level meetings during the years of independence.

The present-day relations are based on the Agreement on friendship, cooperation and mutual support of 1996, and the Agreement on friendship, strengthening mutual trust and development of cooperation signed in 2004.

In 1996, Intergovernmental agreement on main directions of long-term trade and economic cooperation was signed between the two countries.

In June 2007, President of Uzbekistan Islam Karimov met President of Turkmenistan Gubranguli Berdimuhamedov at the informal CIS summit in Saint Petersburg, Russia.

Trade turnover between Uzbekistan and Turkmenistan made up USD 47 million in 2006, and USD 32.6 million in the first half of 2007. The main items of bilateral trade are foods and agricultural produce, organic and inorganic chemical products, construction materials, various equipment and others.

Relations between the two states are also developing in the humanitarian sphere.

On the same day, Rashid Meredov held talks with foreign minister of Uzbekistan Vladimir Norov. The sides considered the current state and perspectives of sociopolitical, economic and cultural relations between the countries.

FOREIGN AMBASSADORS LAY FLOWERS TO INDEPENDENCE AND HUMANISM MONUMENT

Heads of foreign embassies in Uzbekistan laid flowers to the Monument of Independence and Humanism at the Independence Square in Tashkent on August 28.

The diplomats also familiarized with the Senate building located here and the work of the Uzbekistan Parliament’s upper chamber.

Ambassador of Russia Farit Mukhametshin told UzA: “Uzbekistan has achieved great success in all spheres after attaining independence, including the socioeconomic, educational and parliamentarian spheres. Your country has a great economic potential. I am convinced allied relations between our states will continue strengthening.”

Ambassador of Germany Matthias Meyer said: “I am satisfied with the development of cooperation between our countries in all fields. I believe German-Uzbek relations will continue expanding.”


Turkmenistan’s Ambassador Soltan Pirmuhamedov said: “The Monument of Independence and Humanism is a unique complex, reflecting the peace-loving policy of Uzbekistan and noble aspirations of the Uzbek people. I hope mutual friendship and brotherhood, which linked our people for ages, will strengthen further.”


ECONOMICS

ISLAM KARIMOV VISITS “MADE IN UZBEKISTAN” EXHIBITION

President of Uzbekistan Islam Karimov visited “Made in Uzbekistan” exhibition held at UzExpoCenter in Tashkent on August 30, UzA reported.

The head of the state familiarized with automobile industry products presented at the exhibition, including those of UzDaewoo Auto company and Samarkand bus plant.

In the electronics section, President viewed equipment produced at Roison Electronics, Zenit Electronics, Sino and other companies – TV sets, audio and video appliances, refrigerators, conditioners, etc.

UzCable, Deutsche Kabel AG Tashkent, AndijanCable, UzElectroApparat, UMT-Radio and others presented their electro technical products.

Among the participants of the exhibition were such giants as UzMetKombinat, Navoi and Almalyk smelting combines, UzbekQishloqMash, UzElTekhSanoat and other companies.

The exhibition also featured agricultural, meat and dairy, textile and other products.

UZBEKISTAN AIRWAYS PARTICIPATES IN MADE IN UZBEKISTAN

Uzbekiston Havo Yullari (Uzbekistan Airways) National Airline Company participated in the Made in Uzbekistan Exhibition held on August 24-28 at UzExpoCentre National Exhibition Complex.

This year's Made in Uzbekistan became a vivid demonstration of the constructive processes taking place in the country, the results of the reforms being implemented in all spheres of life. A wide range of products and services offered not only to the local but also to external markets were presented. Export has become an important area of the country's economic activity. Nearly all sectors of economy have enterprises actively working toward increasing the export of their products.

Uzbekistan's national airline company is one of them. On its stand, it presented new destinations and routes opened this summer – Cairo, Sochi, and Milan. Thus, the number of the destinations the company's airplanes fly to has reached 45. The company also presented a full range of high quality services provided during the passenger and cargo flights, information about other areas of the company's activity, flyers containing the information on the flights, timetables, etc.

FOREIGN INVESTMENTS TO TOTAL US$41.4M IN 2007

To reduce the state's participation in industry by diminishing its interest in the enterprises of the key sectors, to attract foreign direct investments for the modernization, technical and technological re-equipment of productions, and on this basis to raise production of high quality export-oriented goods, as well as to raise the role of private property in the country's economic development, the President passed a resolution on July 20 this year "On measures to further intensify the processes of privatization and active attracting of foreign investments in 2007-2010".

To meet the said objectives, the Presidential Resolution approves the privatization programme for the next three and half years (2007-2010). According to the programme, by 2010 994 enterprises and non-production objects are to be sold for private ownership through open tenders. Of these, 363 enterprises and objects are in the key sectors of the economy (chemical, electrical, construction, energy, etc). Among them are the enterprises of the UzPakhtaSanoat Association (Uzbek Cotton Industry), UzbekNefteGaz Holding (Uzbek Oil and Gas), UzKimyoSanoat Company (Uzbek Chemical Industry), UzElTehSanoat (Uzbek Electrical Industry), UzSelHozMash Holding (Uzbek Agricultural Machinery), UzbekEnergo Company, Uzbekistan Railways Company, UzAvtoSanoat (Uzbek Auto Industry) Company, and the associations of wholesale trade, fat-and-oil, and food production companies. They will be sold on the condition that the investor takes on specific investment obligations aimed at modernization, technical and technological re-equipment of production and production of competitive, export-oriented goods.

The list also includes 109 objects belonging to the Ministry of Public Education, 101 objects of the Ministry of Healthcare, four objects of the Ministry of Culture and Sport, and three objects of the UzbekTourism Company.

Also, pursuant to the decision of the State Tender Commission, privatization will also touch 19 state-owned recreation zones and 25 summer camps located mainly in the Tashkent region.

To date the majority of the enterprises of the industrial, construction, trade and services spheres have been sold to private investors, but the government continues work on the privatization of the enterprises of key industry and attracting large investments, particularly FDI.

The forecast of the flow of foreign investments, according to the Investment Programme for 2007, in the part of the tasks given to the State Property Committee on the sale of state's interest in the said enterprises, is estimated at US$41.4 million.

In the first half of the year, over 500 agreements on the sale of the state's shareholdings for some US$30.1 million and 10 billion soums were signed. The sum of contracts signed with foreign investors comprised US$25.5 million and 403 million soums. Deals for US$4.4 million were made with foreign investors through the online trades. Payments were received in time on the majority of them.

The volume of works performed within the frame of denationalization and privatization of enterprises and objects totaled 50.8 billion soums. As a result the profit contributed to the state budget exceeded 3.2 billion soums.

In the first half of this year, about 300 state enterprises were privatized. Private investors have set up several limited liability companies and over 250 production enterprises on their base.

It is clear that the abovementioned resolution on the privatization programme has not only expanded the opportunities for the intensification of the privatization processes, but also opened new ways to cardinally increase the share and role of private property in the structure of the economy, and to attract foreign investments, which is deemed an important factor for economic growth and betterment of livelihood of the population.


RUSSIAN ENERGOMASH GROUP SUBMITS REQUEST FOR ACQUISITION OF ADDITIONAL 3% IN SUVMASH

One of the main methods of the anti-monopoly regulation in the Republic of Uzbekistan is the regulation of the issues relating to mergers and acquisitions of the shares (interest, etc) of companies, Uzreport.com reported.

This regulation aims to examine the affect of such deals on market concentration (strengthening of market power of individual companies). It is regulated by the Articles 14, 15, and 16 of the Law of the Republic of Uzbekistan "On competition and restriction of monopolistic activity in commodity markets."

In this regard, companies direct their requests to the State Demonopolisation Committee, where a special Commission considers individual cases and makes appropriate decisions.

Thus, according to the Department of Analysis and Formation of Competitive Environment of the State Demonopolisation Committee, Russian Energomash Group has recently submitted a request for the permission to complete the deal on the acquisition of additional 3% shareholding in Suvmash, which would raise the corporation's stake in the company to 53%. The request is now being considered by the Commission.

It is important to note that according to the Law of the Republic of Uzbekistan "On competition and restriction of monopolistic activity in the commodity markets" a dominating position is an exclusive position of the business entity (a group of individuals) in the market for a particular good that does not have substitutes, which gives this entity an opportunity to have a decisive affect on the restriction of competition, to block the access to the market to other business entities or to limit their freedom of economic activity in any other way. A position of the business entity (group of individuals) is recognized as dominating, if its market share equals or exceeds 65%.

Moreover, according to the same Law, a business entity can be recognized as having a dominating market position, if its share of the market is within the range of 35 to 65 percent, if stated so by the state anti-monopoly agency on the basis of the following factors: the stability of the business entity's market share; relative size of the market shares of competitors; the freedom of entry for new market participants; other criteria characterizing a certain commodity market.

CEMENT PLANT CONSTRUCTION LAUNCHED IN JIZZAKH

The construction of a cement plant with the yearly production capacity of 3 million tonnes has been launched in Zafarbad district of Jizzakh region, according to the Information portal Uzreport.

The project is a joint initiative of UzQurilishMateriallari (UzBuildMaterials) Company and Russian TKB-Invest. The protocol of intention to set up a joint venture to build the plant was signed in spring of this year.

The construction is to be completed by the early 2010. The plant is being erected near the hills with large deposits of sand, limestone and basalt. The plant's production area, including the open pits, engineering communications, and utility areas exceeds 100 hectares.

Uzbekistan currently has six cement plants with the total capacity of 6.5 million tonnes. The volume of production in 2006 totaled 5.582 million tonnes, which exceeds the 2005 results by 10.2%. In general, 12 types of cement are produced in the country, including portland cement, white cement and oil-well cement. Portland cement dominates the market with 99.3% of the aggregate production output. The shares of white and oil-well cement are insignificant.

Cement remains one of the main products of the construction materials industry of Uzbekistan with 72% of the market, and 75% of construction materials exports. About a fifth of all cement produced in the country (up to 1 million tonnes) is exported to the neighbouring countries: 31.3% to Tajikistan, 20.8% to Kazakhstan, 20.3% to Turkmenistan, 17.3% to Afghanistan, 10.2% to Kyrgyzstan. In 2006, cement export volume grew by 18.5% to US$37.9 million.

The Government of Uzbekistan has approved the programme of modernization, technical and technological re-equipment of construction material producing enterprises for 2007-2010. Within the next five years 36 major projects envisaging the installation of modern equipment will be carried out at 14 large enterprises. The programme is financed in part by the enterprises themselves, and in part through FDI and borrowed funds.

The projects in this sector envision the replacement of quarry equipment, modernization of raw and cement mills, installation of new production lines, and repair of existing capacities. As a result, cement product is expected to soar. It will increase 1.5 times compared to 2006 to 8.3 million tonnes.

SOCIETY

PRESIDENT FAMILIARIZES WITH NEW OBJECTS IN TASHKENT

President of UzbekistanIslam Karimov familiarized with newly constructed objects in the city of Tashkent on August 28.

The head of the state got acquainted with the new 2.2-km road linking the capital’s Yunusabad and Mirzo-Ulughbek districts.

The construction of the road and the 16.5-m-high railway flyover started in February and was completed on August 15.

The junction solved the problems related to trains crossing the road and ensured non-stop traffic of the motor and railway transport.

President Karimov also visited the new branch of the Russian state oil and gas university named after Gubkin in Tashkent.

University buildings occupying the territory of 10 ha were reconstructed during the works, which started early this year. The branch has a modern gym, a students’ house and a staff hotel.

The main goal of opening the Russian university’s branch in Tashkent is preparation of highly qualified specialists for the oil and gas sector.

President Karimov met students and professors of the university. More than 100 students have been accepted to the educational institution this year.

FIRST 100 STUDENTS ENROLLED IN OIL AND GAS UNIVERSITY

Pursuant to the Presidential Resolution of 12 January 2007 "On the establishment of the branch of Russian State University of Oil and Gas named after I.Gubkin in the city of Tashkent", the new higher educational facility has opened this year.

The main aim pursued by opening the Tashkent branch of the Russian university is to prepare highly qualified specialists in the field. This branch will prepare specialists of all levels, including scientific-pedagogical staff.

Within a short period, the building, main and laboratory campuses were repaired and prepared for the new educational institution. The necessary furniture, modern textbooks and lab equipment, computers and other technology has been delivered. The university has a well-equipped gym, a dormitory for students and a hostel for the teaching staff.

The informational-resource centre of the university has 2,500 books and manuals, and electronic versions of about 4,000 books.

The new university will gradually introduce the study process in seven directions. This year, 100 students have been enrolled. They will study the following subject areas: "Geophysical methods of searching for and exploring mineral fields" and "Drilling of oil and gas wells". The majority of students are from regions rich in oil and gas fields, such as Ferghana, Kashkadarya, Bukhara regions and the Republic of Karakalpakstan.